HOUSE OF REPRESENTATIVES 

SENATE 

" ! 112TH CONGRESS

2d Session 

REPORT

112–557 

MAP–21 

CONFERENCE REPORT 

TO ACCOMPANY

H.R. 4348 

JUNE 28, 2012.—Ordered to be printed 


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MAP–21 


smartinez on DSK6TPTVN1PROD with REPORTS
U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

74–837 

HOUSE OF REPRESENTATIVES 

SENATE 

" ! 112TH CONGRESS

2d Session 

REPORT

2012

112–557 

MAP–21 

CONFERENCE REPORT 

TO ACCOMPANY

H.R. 4348 

JUNE 28, 2012.—Ordered to be printed 


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smartinez on DSK6TPTVN1PROD with REPORTS
(III) 

C O N T E N T S 

Page 

PART I—EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND RELATED TAXES ................................................................... 613 

A. Extension of Highway Trust Fund Expenditure Authority and Extension of Highway-Related Taxes (secs. 141 and 142 of the House bill, 

secs. 40101 and 40102 of the Senate amendment, secs. 40101 and 

40102 of the conference agreement, and secs. 4041, 4051, 4071, 4081, 

4221, 4481, 4483, 6412, 9503, 9504, and 9508 of the Code) ...................... 613 

PART II—REVENUE PROVISIONS ..................................................................... 616 

A. Leaking Underground Storage Tank Trust Fund (secs. 40301 and 

40302 of the Senate amendment, sec. 40201 of the conference agreement and secs. 9503 and 9508 of the Code) ................................................ 616 

B. Pension Funding Stabilization (sec. 40312 of the Senate amendment, 

sec. 40211 of the conference agreement, Code sec. 430, and ERISA 

secs. 101(f) and 303) ..................................................................................... 618 

C. Transfer of Excess Pension Assets (secs. 40310 and 40311 of the 

Senate amendment, secs. 40241 and 40242 of the conference agreement, and sec. 420 of the Code) ................................................................... 626 

D. Exception from Early Distribution Tax for Annuities Under Phased 

Retirement Program (sec. 100111 of conference agreement and sec. 

72(t) of the Code) ........................................................................................... 630 

E. Additional Transfers to the Highway Trust Fund (sec. 40313 of the 

Senate amendment, sec. 40251 of the conference agreement, and sec. 

9503 of the Code) .......................................................................................... 631 

F. Expand the Definition of a Tobacco Manufacturer to Include Businesses Making Available Roll-Your-Own Cigarette Machines for Consumer Use (sec. 100116 of the Senate amendment, section 100112 

of the conference agreement and sec. 5702(d) of the Code) ....................... 632 

PART III—OTHER ITEMS ..................................................................................... 634 

A. Small Issuer Exception to Tax-Exempt Interest Expense Allocation 

Rules for Financial Institutions (sec. 40201 of the Senate amendment 

and sec. 265 of the Code) .............................................................................. 634 

B. Temporary Modification of Alternative Minimum Tax Limitations on 

Tax-Exempt Bonds (sec. 40202 of the Senate amendment and secs. 

56 and 57 of the Code) .................................................................................. 636 

C. Issuance of TRIP Bonds by State Infrastructure Banks (sec. 40203 

of the Senate amendment) ........................................................................... 637 

D. Mass Transit and Parking Benefits (sec. 40204 of the Senate amendment and sec. 132(f) of the Code) ................................................................ 638 

E. Private Activity Volume Cap Exemption for Sewage and Water Facility 

Bonds (sec. 40205 of the Senate amendment and sec. 146(g) of the 

Code) .............................................................................................................. 639 

F. Dedication of Gas Guzzler Tax to the Highway Trust Fund (sec. 

40303 of the Senate amendment and sec. 9503 of the Code) .................... 640 

G. Revocation or Denial of Passport in Case of Certain Unpaid Taxes 

(sec. 40304 of the Senate amendment and new secs. 7345 and 

6103(l)(23) of the Code) ................................................................................ 641 

H. 100 Percent Continuous Levy on Payments to Medicare Providers 

and Suppliers (sec. 40305 of the Senate amendment and sec. 6331(h) 

of the Code) ................................................................................................... 643 

I. Appropriation to the Highway Trust Fund of Amounts Attributable 

to Certain Duties on Imported Vehicles (sec. 40306 of the Senate 

amendment) ................................................................................................... 645 


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IV 

PART III—OTHER ITEMS—Continued 

J. Treatment of Securities of a Controlled Corporation Exchanged for 

Assets in Certain Reorganizations (sec. 40307 of the Senate amendment and sec. 361 of the Code) .................................................................... 645 

K. Internal Revenue Service Levies and Thrift Savings Plan Accounts 

(sec. 40308 of the Senate amendment) ........................................................ 648 

L. Depreciation and Amortization Rules for Highway and Related Property Subject to Long-Term Leases (sec. 40309 of the Senate amendment 

and secs. 168, 197, and 147 of the Code) .................................................... 649 

M. Transfers to Federal Old-Age and Survivors Insurance Trust Fund 

and Federal Disability Insurance Trust Fund (sec. 40314 of the Senate 

amendment) ................................................................................................... 651 

N. Modify Rules that Apply to Sales of Life Insurance Contracts (secs. 

100112–4 of the Senate amendment and new sec. 6050X of the Code) ... 651 

O. Authorizing Special Measures against Foreign Jurisdictions, Financial 

Institutions, and Others that Significantly Impede U.S. Tax Enforcement (sec. 100201 of the Senate amendment and 31 U.S.C. sec. 5138A) 655 

P. Delay in Application of Worldwide Interest (sec. 1801 of the Senate 

amendment and sec. 864(f) of the Code) ..................................................... 658 

PART IV—TAX COMPLEXITY ANALYSIS .......................................................... 662 


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112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 112–557 

MAP–21 

JUNE 28, 2012.—Ordered to be printed 

Mr. MICA, from the Committee on Conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H. R. 4348] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the Senate to the bill (H.R. 

4348), to provide an extension of Federal-aid highway, highway 

safety, motor carrier safety, transit, and other programs funded out 

of the Highway Trust Fund pending enactment of a multiyear law 

reauthorizing such programs, and for other purposes, having met, 

after full and free conference, have agreed to recommend and do 

recommend to their respective Houses as follows: 

That the House recede from its disagreement to the amendment of the Senate to the text of the bill and agree to the same 

with an amendment as follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert the following: 

SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; 

TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Moving Ahead 

for Progress in the 21st Century Act’’ or the ‘‘MAP–21’’. 

(b) DIVISIONS.—This Act is organized into 8 divisions as follows: 

(1) Division A–Federal-aid Highways and Highway Safety 

Construction Programs. 

(2) Division B–Public Transportation. 

(3) Division C–Transportation Safety and Surface Transportation Policy. 

(4) Division D–Finance. 

(5) Division E–Research and Education. 

(6) Division F–Miscellaneous. 

(7) Division G–Surface Transportation Extension. 

(8) Division H–Budgetary Effects. 


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(c) TABLE OF CONTENTS.—The table of contents for this Act is 

as follows: 

Sec. 1. Short title; organization of Act into divisions; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Effective date. 

DIVISION A—FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY 

CONSTRUCTION PROGRAMS 

TITLE I—FEDERAL-AID HIGHWAYS 

Subtitle A—Authorizations and Programs 

Sec. 1101. Authorization of appropriations. 

Sec. 1102. Obligation ceiling. 

Sec. 1103. Definitions. 

Sec. 1104. National Highway System. 

Sec. 1105. Apportionment. 

Sec. 1106. National highway performance program. 

Sec. 1107. Emergency relief. 

Sec. 1108. Surface transportation program. 

Sec. 1109. Workforce development. 

Sec. 1110. Highway use tax evasion projects. 

Sec. 1111. National bridge and tunnel inventory and inspection standards. 

Sec. 1112. Highway safety improvement program. 

Sec. 1113. Congestion mitigation and air quality improvement program. 

Sec. 1114. Territorial and Puerto Rico highway program. 

Sec. 1115. National freight policy. 

Sec. 1116. Prioritization of projects to improve freight movement. 

Sec. 1117. State freight advisory committees. 

Sec. 1118. State freight plans. 

Sec. 1119. Federal lands and tribal transportation programs. 

Sec. 1120. Projects of national and regional significance. 

Sec. 1121. Construction of ferry boats and ferry terminal facilities. 

Sec. 1122. Transportation alternatives. 

Sec. 1123. Tribal high priority projects program. 

Subtitle B—Performance Management 

Sec. 1201. Metropolitan transportation planning. 

Sec. 1202. Statewide and nonmetropolitan transportation planning. 

Sec. 1203. National goals and performance management measures. 

Subtitle C—Acceleration of Project Delivery 

Sec. 1301. Declaration of policy and project delivery initiative. 

Sec. 1302. Advance acquisition of real property interests. 

Sec. 1303. Letting of contracts. 

Sec. 1304. Innovative project delivery methods. 

Sec. 1305. Efficient environmental reviews for project decisionmaking. 

Sec. 1306. Accelerated decisionmaking. 

Sec. 1307. Assistance to affected Federal and State agencies. 

Sec. 1308. Limitations on claims. 

Sec. 1309. Accelerating completion of complex projects within 4 years. 

Sec. 1310. Integration of planning and environmental review. 

Sec. 1311. Development of programmatic mitigation plans. 

Sec. 1312. State assumption of responsibility for categorical exclusions. 

Sec. 1313. Surface transportation project delivery program. 

Sec. 1314. Application of categorical exclusions for multimodal projects. 

Sec. 1315. Categorical exclusions in emergencies. 

Sec. 1316. Categorical exclusions for projects within the right-of-way. 

Sec. 1317. Categorical exclusion for projects of limited Federal assistance. 

Sec. 1318. Programmatic agreements and additional categorical exclusions. 

Sec. 1319. Accelerated decisionmaking in environmental reviews. 

Sec. 1320. Memoranda of agency agreements for early coordination. 

Sec. 1321. Environmental procedures initiative. 

Sec. 1322. Review of State environmental reviews and approvals for the purpose of 

eliminating duplication of environmental reviews. 

Sec. 1323. Review of Federal project and program delivery. 


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Subtitle D—Highway Safety 

Sec. 1401. Jason’s law. 

Sec. 1402. Open container requirements. 

Sec. 1403. Minimum penalties for repeat offenders for driving while intoxicated or 

driving under the influence. 

Sec. 1404. Adjustments to penalty provisions. 

Sec. 1405. Highway worker safety. 

Subtitle E—Miscellaneous 

Sec. 1501. Real-time ridesharing. 

Sec. 1502. Program efficiencies. 

Sec. 1503. Project approval and oversight. 

Sec. 1504. Standards. 

Sec. 1505. Justification reports for access points on the Interstate System. 

Sec. 1506. Construction. 

Sec. 1507. Maintenance. 

Sec. 1508. Federal share payable. 

Sec. 1509. Transferability of Federal-aid highway funds. 

Sec. 1510. Idle reduction technology. 

Sec. 1511. Special permits during periods of national emergency. 

Sec. 1512. Tolling. 

Sec. 1513. Miscellaneous parking amendments. 

Sec. 1514. HOV facilities. 

Sec. 1515. Funding flexibility for transportation emergencies. 

Sec. 1516. Defense access road program enhancements to address transportation infrastructure in the vicinity of military installations. 

Sec. 1517. Mapping. 

Sec. 1518. Buy America provisions. 

Sec. 1519. Consolidation of programs; repeal of obsolete provisions. 

Sec. 1520. Denali Commission. 

Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition Policies Act 

of 1970 amendments. 

Sec. 1522. Extension of public transit vehicle exemption from axle weight restrictions. 

Sec. 1523. Use of debris from demolished bridges and overpasses. 

Sec. 1524. Use of youth service and conservation corps. 

Sec. 1525. State autonomy for culvert pipe selection. 

Sec. 1526. Evacuation routes. 

Sec. 1527. Consolidation of grants. 

Sec. 1528. Appalachian development highway system. 

Sec. 1529. Engineering judgment. 

Sec. 1530. Transportation training and employment programs. 

Sec. 1531. Notice of certain grant awards. 

Sec. 1532. Budget justification. 

Sec. 1533. Prohibition on use of funds for automated traffic enforcement. 

Sec. 1534. Public-private partnerships. 

Sec. 1535. Report on Highway Trust Fund expenditures. 

Sec. 1536. Sense of Congress on harbor maintenance. 

Sec. 1537. Estimate of harbor maintenance needs. 

Sec. 1538. Asian carp. 

Sec. 1539. Rest areas. 

Subtitle F—Gulf Coast Restoration 

Sec. 1601. Short title. 

Sec. 1602. Gulf Coast Restoration Trust Fund. 

Sec. 1603. Gulf Coast natural resources restoration and economic recovery. 

Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and 

Technology program. 

Sec. 1605. Centers of excellence research grants. 

Sec. 1606. Effect. 

Sec. 1607. Restoration and protection activity limitations. 

Sec. 1608. Inspector General. 

TITLE II—AMERICA FAST FORWARD FINANCING INNOVATION 

Sec. 2001. Short title. 

Sec. 2002. Transportation Infrastructure Finance and Innovation Act of 1998 

amendments. 


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DIVISION B—PUBLIC TRANSPORTATION 

Sec. 20001. Short title. 

Sec. 20002. Repeals. 

Sec. 20003. Policies and purposes. 

Sec. 20004. Definitions. 

Sec. 20005. Metropolitan transportation planning. 

Sec. 20006. Statewide and nonmetropolitan transportation planning. 

Sec. 20007. Urbanized area formula grants. 

Sec. 20008. Fixed guideway capital investment grants. 

Sec. 20009. Mobility of seniors and individuals with disabilities. 

Sec. 20010. Formula grants for rural areas. 

Sec. 20011. Research, development, demonstration, and deployment projects. 

Sec. 20012. Technical assistance and standards development. 

Sec. 20013. Private sector participation. 

Sec. 20014. Bus testing facilities. 

Sec. 20015. Human resources and training. 

Sec. 20016. General provisions. 

Sec. 20017. Public Transportation Emergency Relief Program. 

Sec. 20018. Contract requirements. 

Sec. 20019. Transit asset management. 

Sec. 20020. Project management oversight. 

Sec. 20021. Public transportation safety. 

Sec. 20022. Alcohol and controlled substances testing. 

Sec. 20023. Nondiscrimination. 

Sec. 20024. Administrative provisions. 

Sec. 20025. National transit database. 

Sec. 20026. Apportionment of appropriations for formula grants. 

Sec. 20027. State of good repair grants. 

Sec. 20028. Authorizations. 

Sec. 20029. Bus and bus facilities formula grants. 

Sec. 20030. Technical and conforming amendments. 

DIVISION C—TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION 

POLICY 

TITLE I—MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 

2012 

Sec. 31001. Short title. 

Sec. 31002. Definition. 

Subtitle A—Highway Safety 

Sec. 31101. Authorization of appropriations. 

Sec. 31102. Highway safety programs. 

Sec. 31103. Highway safety research and development. 

Sec. 31104. National driver register. 

Sec. 31105. National priority safety programs. 

Sec. 31106. High visibility enforcement program. 

Sec. 31107. Agency accountability. 

Sec. 31108. Emergency medical services. 

Sec. 31109. Repeal of programs. 

Subtitle B—Enhanced Safety Authorities 

Sec. 31201. Definition of motor vehicle equipment. 

Sec. 31202. Permit reminder system for non-use of safety belts. 

Sec. 31203. Civil penalties. 

Sec. 31204. Motor vehicle safety research and development. 

Sec. 31205. Odometer requirements. 

Sec. 31206. Increased penalties and damages for odometer fraud. 

Sec. 31207. Extend prohibitions on importing noncompliant vehicles and equipment 

to defective vehicles and equipment. 

Sec. 31208. Conditions on importation of vehicles and equipment. 

Sec. 31209. Port inspections; samples for examination or testing. 

Subtitle C—Transparency and Accountability 

Sec. 31301. Public availability of recall information. 

Sec. 31302. National Highway Traffic Safety Administration outreach to manufacturer, dealer, and mechanic personnel. 

Sec. 31303. Public availability of communications to dealers. 


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Sec. 31304. Corporate responsibility for National Highway Traffic Safety Administration reports. 

Sec. 31305. Passenger motor vehicle information program. 

Sec. 31306. Promotion of vehicle defect reporting. 

Sec. 31307. Whistleblower protections for motor vehicle manufacturers, part suppliers, and dealership employees. 

Sec. 31308. Anti-revolving door. 

Sec. 31309. Study of crash data collection. 

Sec. 31310. Update means of providing notification; improving efficacy of recalls. 

Sec. 31311. Expanding choices of remedy available to manufacturers of replacement 

equipment. 

Sec. 31312. Recall obligations and bankruptcy of manufacturer. 

Sec. 31313. Repeal of insurance reports and information provision. 

Sec. 31314. Monroney sticker to permit additional safety rating categories. 

Subtitle D—Vehicle Electronics and Safety Standards 

Sec. 31401. National Highway Traffic Safety Administration electronics, software, 

and engineering expertise. 

Sec. 31402. Electronic systems performance. 

Subtitle E—Child Safety Standards 

Sec. 31501. Child safety seats. 

Sec. 31502. Child restraint anchorage systems. 

Sec. 31503. Rear seat belt reminders. 

Sec. 31504. Unattended passenger reminders. 

Sec. 31505. New deadline. 

Subtitle F—Improved Daytime and Nighttime Visibility of Agricultural Equipment 

Sec. 31601. Rulemaking on visibility of agricultural equipment. 

TITLE II—COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 

2012 

Sec. 32001. Short title. 

Sec. 32002. References to title 49, United States Code. 

Subtitle A—Commercial Motor Vehicle Registration 

Sec. 32101. Registration of motor carriers. 

Sec. 32102. Safety fitness of new operators. 

Sec. 32103. Reincarnated carriers. 

Sec. 32104. Financial responsibility requirements. 

Sec. 32105. USDOT number registration requirement. 

Sec. 32106. Registration fee system. 

Sec. 32107. Registration update. 

Sec. 32108. Increased penalties for operating without registration. 

Sec. 32109. Revocation of registration for imminent hazard. 

Sec. 32110. Revocation of registration and other penalties for failure to respond to 

subpoena. 

Sec. 32111. Fleetwide out of service order for operating without required registration. 

Sec. 32112. Motor carrier and officer patterns of safety violations. 

Subtitle B—Commercial Motor Vehicle Safety 

Sec. 32201. Crashworthiness standards. 

Sec. 32202. Canadian safety rating reciprocity. 

Sec. 32203. State reporting of foreign commercial driver convictions. 

Sec. 32204. Authority to disqualify foreign commercial drivers. 

Sec. 32205. Revocation of foreign motor carrier operating authority for failure to pay 

civil penalties. 

Sec. 32206. Rental truck accident study. 

Subtitle C—Driver Safety 

Sec. 32301. Hours of service study and electronic logging devices. 

Sec. 32302. Driver medical qualifications. 

Sec. 32303. Commercial driver’s license notification system. 

Sec. 32304. Commercial motor vehicle operator training. 

Sec. 32305. Commercial driver’s license program. 

Sec. 32306. Commercial motor vehicle driver information systems. 


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Sec. 32307. Employer responsibilities. 

Sec. 32308. Program to assist Veterans to acquire commercial driver’s licenses. 

Subtitle D—Safe Roads Act of 2012 

Sec. 32401. Short title. 

Sec. 32402. National clearinghouse for controlled substance and alcohol test results 

of commercial motor vehicle operators. 

Subtitle E—Enforcement 

Sec. 32501. Inspection demand and display of credentials. 

Sec. 32502. Out of service penalty for denial of access to records. 

Sec. 32503. Penalties for violation of operation out of service orders. 

Sec. 32504. Impoundment and immobilization of commercial motor vehicles for imminent hazard. 

Sec. 32505. Increased penalties for evasion of regulations. 

Sec. 32506. Violations relating to commercial motor vehicle safety regulation and 

operators. 

Sec. 32507. Emergency disqualification for imminent hazard. 

Sec. 32508. Disclosure to State and local law enforcement agencies. 

Sec. 32509. Grade crossing safety regulations. 

Subtitle F—Compliance, Safety, Accountability 

Sec. 32601. Motor carrier safety assistance program. 

Sec. 32602. Performance and registration information systems management program. 

Sec. 32603. Authorization of appropriations. 

Sec. 32604. Grants for commercial driver’s license program implementation. 

Sec. 32605. Commercial vehicle information systems and networks. 

Subtitle G—Motorcoach Enhanced Safety Act of 2012 

Sec. 32701. Short title. 

Sec. 32702. Definitions. 

Sec. 32703. Regulations for improved occupant protection, passenger evacuation, 

and crash avoidance. 

Sec. 32704. Fire prevention and mitigation. 

Sec. 32705. Occupant protection, collision avoidance, fire causation, and fire extinguisher research and testing. 

Sec. 32706. Concurrence of research and rulemaking. 

Sec. 32707. Improved oversight of motorcoach service providers. 

Sec. 32708. Report on feasibility, benefits, and costs of establishing a system of certification of training programs. 

Sec. 32709. Commercial driver’s license passenger endorsement requirements. 

Sec. 32710. Safety inspection program for commercial motor vehicles of passengers. 

Sec. 32711. Regulations. 

Subtitle H—Safe Highways and Infrastructure Preservation 

Sec. 32801. Comprehensive truck size and weight limits study. 

Sec. 32802. Compilation of existing State truck size and weight limit laws. 

Subtitle I—Miscellaneous 

PART I—MISCELLANEOUS

Sec. 32911. Prohibition of coercion. 

Sec. 32912. Motor carrier safety advisory committee. 

Sec. 32913. Waivers, exemptions, and pilot programs. 

Sec. 32914. Registration requirements. 

Sec. 32915. Additional motor carrier registration requirements. 

Sec. 32916. Registration of freight forwarders and brokers. 

Sec. 32917. Effective periods of registration. 

Sec. 32918. Financial security of brokers and freight forwarders. 

Sec. 32919. Unlawful brokerage activities. 

PART II—HOUSEHOLD GOODS TRANSPORTATION

Sec. 32921. Additional registration requirements for household goods motor carriers. 

Sec. 32922. Failure to give up possession of household goods. 

Sec. 32923. Settlement authority. 


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PART III—TECHNICAL AMENDMENTS

Sec. 32931. Update of obsolete text. 

Sec. 32932. Correction of interstate commerce commission references. 

Sec. 32933. Technical and conforming amendments. 

Sec. 32934. Exemptions from requirements for covered farm vehicles. 

TITLE III—HAZARDOUS MATERIALS TRANSPORTATION SAFETY 

IMPROVEMENT ACT OF 2012 

Sec. 33001. Short title. 

Sec. 33002. Definition. 

Sec. 33003. References to title 49, United States Code. 

Sec. 33004. Training for emergency responders. 

Sec. 33005. Paperless Hazard Communications Pilot Program. 

Sec. 33006. Improving data collection, analysis, and reporting. 

Sec. 33007. Hazardous material technical assessment, research and development, 

and analysis program. 

Sec. 33008. Hazardous Material Enforcement Training. 

Sec. 33009. Inspections. 

Sec. 33010. Civil penalties. 

Sec. 33011. Reporting of fees. 

Sec. 33012. Special permits, approvals, and exclusions. 

Sec. 33013. Highway routing disclosures. 

Sec. 33014. Motor carrier safety permits. 

Sec. 33015. Wetlines. 

Sec. 33016. Hazmat employee training requirements and grants. 

Sec. 33017. Authorization of appropriations. 

TITLE IV—SPORT FISH RESTORATION AND RECREATIONAL BOATING 

SAFETY ACT OF 2012 

Sec. 34001. Short title. 

Sec. 34002. Amendment of Federal Aid in Sport Fish Restoration Act. 

TITLE V—MISCELLANEOUS 

Sec. 35001. Overflights in Grand Canyon National Park. 

Sec. 35002. Commercial air tour operations. 

Sec. 35003. Qualifications for public aircraft status. 

DIVISION D—FINANCE 

Sec. 40001. Short title. 

TITLE I—EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE 

AUTHORITY AND RELATED TAXES 

Sec. 40101. Extension of trust fund expenditure authority. 

Sec. 40102. Extension of highway-related taxes. 

TITLE II—REVENUE PROVISIONS 

Subtitle A—Leaking Underground Storage Tank Trust Fund 

Sec. 40201. Transfer from Leaking Underground Storage Tank Trust Fund to Highway Trust Fund. 

Subtitle B—Pension Provisions 

PART I—PENSION FUNDING STABILIZATION

Sec. 40211. Pension funding stabilization. 

PART II—PBGC PREMIUMS

Sec. 40221. Single employer plan annual premium rates. 

Sec. 40222. Multiemployer annual premium rates. 

PART III—IMPROVEMENTS OF PBGC 

Sec. 40231. Pension Benefit Guaranty Corporation Governance Improvement. 

Sec. 40232. Participant and plan sponsor advocate. 

Sec. 40233. Quality control procedures for the Pension Benefit Guaranty Corporation. 

Sec. 40234. Line of credit repeal. 


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PART IV—TRANSFERS OF EXCESS PENSION ASSETS

Sec. 40241. Extension for transfers of excess pension assets to retiree health accounts. 

Sec. 40242. Transfer of excess pension assets to retiree group term life insurance accounts. 

Subtitle C—Additional Transfers to Highway Trust Fund 

Sec. 40251. Additional transfers to Highway Trust Fund. 

DIVISION E—RESEARCH AND EDUCATION 

Sec. 50001. Short title. 

TITLE I—FUNDING 

Sec. 51001. Authorization of appropriations. 

TITLE II—RESEARCH, TECHNOLOGY, AND EDUCATION 

Sec. 52001. Research, technology, and education. 

Sec. 52002. Surface transportation research, development, and technology. 

Sec. 52003. Research and technology development and deployment. 

Sec. 52004. Training and education. 

Sec. 52005. State planning and research. 

Sec. 52006. International highway transportation program. 

Sec. 52007. Surface transportation environmental cooperative research program. 

Sec. 52008. National cooperative freight research. 

Sec. 52009. University transportation centers program. 

Sec. 52010. University transportation research. 

Sec. 52011. Bureau of Transportation Statistics. 

Sec. 52012. Administrative authority. 

Sec. 52013. Transportation research and development strategic planning. 

TITLE III—INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH 

Sec. 53001. Use of funds for ITS activities. 

Sec. 53002. Goals and purposes. 

Sec. 53003. General authorities and requirements. 

Sec. 53004. Research and development. 

Sec. 53005. National architecture and standards. 

Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems 

deployment. 

DIVISION F—MISCELLANEOUS 

TITLE I—REAUTHORIZATION OF CERTAIN PROGRAMS 

Subtitle A—Secure Rural Schools and Community Self-determination Program 

Sec. 100101. Secure Rural Schools and Community Self-Determination Program. 

Subtitle B—Payment in Lieu of Taxes Program 

Sec. 100111. Payments in lieu of taxes. 

Subtitle C—Offsets 

Sec. 100121. Phased retirement authority. 

Sec. 100122. Roll-your-own cigarette machines. 

Sec. 100123. Change in FMAP increase for disaster recovery states. 

Sec. 100124. Repeals. 

Sec. 100125. Limitation on payments from the Abandoned Mine Reclamation Fund. 

TITLE II—FLOOD INSURANCE 

Subtitle A—Flood Insurance Reform and Modernization 

Sec. 100201. Short title. 

Sec. 100202. Definitions. 

Sec. 100203. Extension of National Flood Insurance Program. 

Sec. 100204. Availability of insurance for multifamily properties. 

Sec. 100205. Reform of premium rate structure. 

Sec. 100207. Premium adjustment. 

Sec. 100208. Enforcement. 

Sec. 100209. Escrow of flood insurance payments. 


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Sec. 100210. Minimum deductibles for claims under the National Flood Insurance 

Program. 

Sec. 100211. Considerations in determining chargeable premium rates. 

Sec. 100212. Reserve fund. 

Sec. 100213. Repayment plan for borrowing authority. 

Sec. 100214. Payment of condominium claims. 

Sec. 100215. Technical mapping advisory council. 

Sec. 100216. National flood mapping program. 

Sec. 100217. Scope of appeals. 

Sec. 100218. Scientific Resolution Panel. 

Sec. 100219. Removal of limitation on State contributions for updating flood maps. 

Sec. 100220. Coordination. 

Sec. 100221. Interagency coordination study. 

Sec. 100222. Notice of flood insurance availability under RESPA. 

Sec. 100223. Participation in State disaster claims mediation programs. 

Sec. 100224. Oversight and expense reimbursements of insurance companies. 

Sec. 100225. Mitigation. 

Sec. 100226. Flood Protection Structure Accreditation Task Force. 

Sec. 100227. Flood in progress determinations. 

Sec. 100228. Clarification of residential and commercial coverage limits. 

Sec. 100229. Local data requirement. 

Sec. 100230. Eligibility for flood insurance for persons residing in communities that 

have made adequate progress on the reconstruction or improvement of 

a flood protection system. 

Sec. 100231. Studies and reports. 

Sec. 100232. Reinsurance. 

Sec. 100233. GAO study on business interruption and additional living expenses 

coverages. 

Sec. 100234. Policy disclosures. 

Sec. 100235. Report on inclusion of building codes in floodplain management criteria. 

Sec. 100236. Study of participation and affordability for certain policyholders. 

Sec. 100237. Study and report concerning the participation of Indian tribes and 

members of Indian tribes in the National Flood Insurance Program. 

Sec. 100238. Technical corrections. 

Sec. 100239. Use of private insurance to satisfy mandatory purchase requirement. 

Sec. 100240. Levees constructed on certain properties. 

Sec. 100241. Insurance coverage for private properties affected by flooding from Federal lands. 

Sec. 100242. Permissible land use under Federal flood insurance plan. 

Sec. 100243. CDBG eligibility for flood insurance outreach activities and community 

building code administration grants. 

Sec. 100244. Termination of force-placed insurance. 

Sec. 100245. FEMA authority on transfer of policies. 

Sec. 100246. Reimbursement of certain expenses. 

Sec. 100247. FIO study on risks, hazards, and insurance. 

Sec. 100248. Flood protection improvements constructed on certain properties. 

Sec. 100249. No cause of action. 

Subtitle B—Alternative Loss Allocation 

Sec. 100251. Short title. 

Sec. 100252. Assessing and modeling named storms over coastal States. 

Sec. 100253. Alternative loss allocation system for indeterminate claims. 

Subtitle C—HEARTH Act Amendment 

Sec. 100261. HEARTH Act technical corrections. 

TITLE III—STUDENT LOAN INTEREST RATE EXTENSION 

Sec. 100301. Federal Direct Stafford Loan interest rate extension. 

Sec. 100302. Eligibility for, and interest charges on, Federal Direct Stafford Loans 

for new borrowers on or after July 1, 2013. 

DIVISION G—SURFACE TRANSPORTATION EXTENSION 

Sec. 110001. Short title. 

TITLE I—FEDERAL-AID HIGHWAYS 

Sec. 111001. Extension of Federal-aid highway programs. 


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TITLE II—EXTENSION OF HIGHWAY SAFETY PROGRAMS 

Sec. 112001. Extension of National Highway Traffic Safety Administration highway 

safety programs. 

Sec. 112002. Extension of Federal Motor Carrier Safety Administration programs. 

Sec. 112003. Additional programs. 

TITLE III—PUBLIC TRANSPORTATION PROGRAMS 

Sec. 113001. Allocation of funds for planning programs. 

Sec. 113002. Special rule for urbanized area formula grants. 

Sec. 113003. Allocating amounts for capital investment grants. 

Sec. 113004. Apportionment of formula grants for other than urbanized areas. 

Sec. 113005. Apportionment based on fixed guideway factors. 

Sec. 113006. Authorizations for public transportation. 

Sec. 113007. Amendments to SAFETEA–LU. 

TITLE IV—EFFECTIVE DATE 

Sec. 114001. Effective date. 

DIVISION H—BUDGETARY EFFECTS 

Sec. 120001. Budgetary effects. 

SEC. 2. DEFINITIONS. 

In this Act, the following definitions apply: 

(1) DEPARTMENT.—The term ‘‘Department’’ means the Department of Transportation. 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Transportation. 

SEC. 3. EFFECTIVE DATE. 

(a) IN GENERAL.—Except as otherwise provided, divisions A, B, 

C (other than sections 32603(d), 32603(g), 32912, and 34002 of that 

division) and E, including the amendments made by those divisions, take effect on October 1, 2012. 

(b) REFERENCES.—Except as otherwise provided, any reference 

to the date of enactment of the MAP–21 or to the date of enactment 

of the Federal Public Transportation Act of 2012 in the divisions described in subsection (a) or in an amendment made by those divisions shall be deemed to be a reference to the effective date of those 

divisions. 

DIVISION A—FEDERAL-AID HIGHWAYS 

AND HIGHWAY SAFETY CONSTRUCTION PROGRAMS 

TITLE I—FEDERAL-AID HIGHWAYS 

Subtitle A—Authorizations and Programs 

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—The following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Mass 

Transit Account): 

(1) FEDERAL-AID HIGHWAY PROGRAM.—For the national 

highway performance program under section 119 of title 23, 

United States Code, the surface transportation program under 

section 133 of that title, the highway safety improvement program under section 148 of that title, the congestion mitigation 


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and air quality improvement program under section 149 of that 

title, and to carry out section 134 of that title— (A) $37,476,819,674 for fiscal year 2013; and 

(B) $37,798,000,000 for fiscal year 2014. 

(2) TRANSPORTATION INFRASTRUCTURE FINANCE AND INNO- VATION PROGRAM.—For credit assistance under the transportation infrastructure finance and innovation program under 

chapter 6 of title 23, United States Code— (A) $750,000,000 for fiscal year 2013; and 

(B) $1,000,000,000 for fiscal year 2014. 

(3) FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.— 

(A) TRIBAL TRANSPORTATION PROGRAM.—For the tribal 

transportation program under section 202 of title 23, 

United States Code, $450,000,000 for each of fiscal years 

2013 and 2014. 

(B) FEDERAL LANDS TRANSPORTATION PROGRAM.—For 

the Federal lands transportation program under section 

203 of title 23, United States Code, $300,000,000 for each 

of fiscal years 2013 and 2014, of which $240,000,000 of the 

amount made available for each fiscal year shall be the 

amount for the National Park Service and $30,000,000 of 

the amount made available for each fiscal year shall be the 

amount for the United States Fish and Wildlife Service. 

(C) FEDERAL LANDS ACCESS PROGRAM.—For the Federal lands access program under section 204 of title 23, 

United States Code, $250,000,000 for each of fiscal years 

2013 and 2014. 

(4) TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.— 

For the territorial and Puerto Rico highway program under section 165 of title 23, United States Code, $190,000,000 for each 

of fiscal years 2013 and 2014. 

(b) DISADVANTAGED BUSINESS ENTERPRISES.— (1) FINDINGS.—Congress finds that— 

(A) while significant progress has occurred due to the 

establishment of the disadvantaged business enterprise program, discrimination and related barriers continue to pose 

significant obstacles for minority- and women-owned businesses seeking to do business in federally-assisted surface 

transportation markets across the United States; 

(B) the continuing barriers described in subparagraph 

(A) merit the continuation of the disadvantaged business 

enterprise program; 

(C) Congress has received and reviewed testimony and 

documentation of race and gender discrimination from numerous sources, including congressional hearings and 

roundtables, scientific reports, reports issued by public and 

private agencies, news stories, reports of discrimination by 

organizations and individuals, and discrimination lawsuits, which show that race- and gender-neutral efforts 

alone are insufficient to address the problem; 

(D) the testimony and documentation described in subparagraph (C) demonstrate that discrimination across the 

United States poses a barrier to full and fair participation 

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ness owners and minority business owners and has impacted firm development and many aspects of surface 

transportation-related business in the public and private 

markets; and 

(E) the testimony and documentation described in subparagraph (C) provide a strong basis that there is a compelling need for the continuation of the disadvantaged business enterprise program to address race and gender discrimination in surface transportation-related business. 

(2) DEFINITIONS.—In this subsection, the following definitions apply: 

(A) SMALL BUSINESS CONCERN.— 

(i) IN GENERAL.—The term ‘‘small business concern’’ means a small business concern (as the term is 

used in section 3 of the Small Business Act (15 U.S.C. 

632)). 

(ii) EXCLUSIONS.—The term ‘‘small business concern’’ does not include any concern or group of concerns 

controlled by the same socially and economically disadvantaged individual or individuals that have average annual gross receipts during the preceding 3 fiscal 

years in excess of $22,410,000, as adjusted annually by 

the Secretary for inflation. 

(B) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term ‘‘socially and economically disadvantaged individuals’’ has the meaning given the term in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and 

relevant subcontracting regulations issued pursuant to that 

Act, except that women shall be presumed to be socially 

and economically disadvantaged individuals for purposes 

of this subsection. 

(3) AMOUNTS FOR SMALL BUSINESS CONCERNS.—Except to 

the extent that the Secretary determines otherwise, not less than 

10 percent of the amounts made available for any program 

under divisions A and B of this Act and section 403 of title 23, 

United States Code, shall be expended through small business 

concerns owned and controlled by socially and economically 

disadvantaged individuals. 

(4) ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTERPRISES.—Each State shall annually— 

(A) survey and compile a list of the small business concerns referred to in paragraph (2) in the State, including 

the location of the small business concerns in the State; 

and 

(B) notify the Secretary, in writing, of the percentage of 

the small business concerns that are controlled by— 

(i) women; 

(ii) socially and economically disadvantaged individuals (other than women); and 

(iii) individuals who are women and are otherwise 

socially and economically disadvantaged individuals. 

(5) UNIFORM CERTIFICATION.— 

(A) IN GENERAL.—The Secretary shall establish minimum uniform criteria for use by State governments in cerVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00018 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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tifying whether a concern qualifies as a small business concern for the purpose of this subsection. 

(B) INCLUSIONS.—The minimum uniform criteria established under subparagraph (A) shall include, with respect to a potential small business concern— 

(i) on-site visits; 

(ii) personal interviews with personnel; 

(iii) issuance or inspection of licenses; 

(iv) analyses of stock ownership; 

(v) listings of equipment; 

(vi) analyses of bonding capacity; 

(vii) listings of work completed; 

(viii) examination of the resumes of principal owners; 

(ix) analyses of financial capacity; and 

(x) analyses of the type of work preferred. 

(6) REPORTING.—The Secretary shall establish minimum 

requirements for use by State governments in reporting to the 

Secretary— 

(A) information concerning disadvantaged business enterprise awards, commitments, and achievements; and 

(B) such other information as the Secretary determines 

to be appropriate for the proper monitoring of the disadvantaged business enterprise program. 

(7) COMPLIANCE WITH COURT ORDERS.—Nothing in this 

subsection limits the eligibility of an individual or entity to receive funds made available under divisions A and B of this Act 

and section 403 of title 23, United States Code, if the entity or 

person is prevented, in whole or in part, from complying with 

paragraph (2) because a Federal court issues a final order in 

which the court finds that a requirement or the implementation 

of paragraph (2) is unconstitutional. 

SEC. 1102. OBLIGATION CEILING. 

(a) GENERAL LIMITATION.—Subject to subsection (e), and notwithstanding any other provision of law, the obligations for Federal-aid highway and highway safety construction programs shall 

not exceed— 

(1) $39,699,000,000 for fiscal year 2013; and 

(2) $40,256,000,000 for fiscal year 2014. 

(b) EXCEPTIONS.—The limitations under subsection (a) shall not 

apply to obligations under or for— 

(1) section 125 of title 23, United States Code; 

(2) section 147 of the Surface Transportation Assistance Act 

of 1978 (23 U.S.C. 144 note; 92 Stat. 2714); 

(3) section 9 of the Federal-Aid Highway Act of 1981 (95 

Stat. 1701); 

(4) subsections (b) and (j) of section 131 of the Surface 

Transportation Assistance Act of 1982 (96 Stat. 2119); 

(5) subsections (b) and (c) of section 149 of the Surface 

Transportation and Uniform Relocation Assistance Act of 1987 

(101 Stat. 198); 

(6) sections 1103 through 1108 of the Intermodal Surface 

Transportation Efficiency Act of 1991 (105 Stat. 2027); 

(7) section 157 of title 23, United States Code (as in effect 

on June 8, 1998); 


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(8) section 105 of title 23, United States Code (as in effect 

for fiscal years 1998 through 2004, but only in an amount 

equal to $639,000,000 for each of those fiscal years); 

(9) Federal-aid highway programs for which obligation authority was made available under the Transportation Equity 

Act for the 21st Century (112 Stat. 107) or subsequent Acts for 

multiple years or to remain available until expended, but only 

to the extent that the obligation authority has not lapsed or 

been used; 

(10) section 105 of title 23, United States Code (but, for 

each of fiscal years 2005 through 2011, only in an amount 

equal to $639,000,000 for each of those fiscal years); 

(11) section 1603 of SAFETEA–LU (23 U.S.C. 118 note; 119 

Stat. 1248), to the extent that funds obligated in accordance 

with that section were not subject to a limitation on obligations 

at the time at which the funds were initially made available for 

obligation; and 

(12) section 119 of title 23, United States Code (but, for 

each of fiscal years 2013 through 2014, only in an amount 

equal to $639,000,000 for each of those fiscal years). 

(c) DISTRIBUTION OF OBLIGATION AUTHORITY.—For each of fiscal years 2013 through 2014, the Secretary— 

(1) shall not distribute obligation authority provided by 

subsection (a) for the fiscal year for— 

(A) amounts authorized for administrative expenses 

and programs by section 104(a) of title 23, United States 

Code; and 

(B) amounts authorized for the Bureau of Transportation Statistics; 

(2) shall not distribute an amount of obligation authority 

provided by subsection (a) that is equal to the unobligated balance of amounts— 

(A) made available from the Highway Trust Fund 

(other than the Mass Transit Account) for Federal-aid highway and highway safety construction programs for previous 

fiscal years the funds for which are allocated by the Secretary (or apportioned by the Secretary under sections 202 

or 204 of title 23, United States Code); and 

(B) for which obligation authority was provided in a 

previous fiscal year; 

(3) shall determine the proportion that— 

(A) the obligation authority provided by subsection (a) 

for the fiscal year, less the aggregate of amounts not distributed under paragraphs (1) and (2) of this subsection; 

bears to 

(B) the total of the sums authorized to be appropriated 

for the Federal-aid highway and highway safety construction programs (other than sums authorized to be appropriated for provisions of law described in paragraphs (1) 

through (11) of subsection (b) and sums authorized to be 

appropriated for section 119 of title 23, United States Code, 

equal to the amount referred to in subsection (b)(12) for the 

fiscal year), less the aggregate of the amounts not distributed under paragraphs (1) and (2) of this subsection; 


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(4) shall distribute the obligation authority provided by 

subsection (a), less the aggregate amounts not distributed under 

paragraphs (1) and (2), for each of the programs (other than 

programs to which paragraph (1) applies) that are allocated by 

the Secretary under this Act and title 23, United States Code, 

or apportioned by the Secretary under sections 202 or 204 of 

that title, by multiplying— 

(A) the proportion determined under paragraph (3); by 

(B) the amounts authorized to be appropriated for each 

such program for the fiscal year; and 

(5) shall distribute the obligation authority provided by 

subsection (a), less the aggregate amounts not distributed under 

paragraphs (1) and (2) and the amounts distributed under 

paragraph (4), for Federal-aid highway and highway safety 

construction programs that are apportioned by the Secretary 

under title 23, United States Code (other than the amounts apportioned for the national highway performance program in section 119 of title 23, United States Code, that are exempt from 

the limitation under subsection (b)(12) and the amounts apportioned under section 204 of that title) in the proportion that— 

(A) amounts authorized to be appropriated for the programs that are apportioned under title 23, United States 

Code, to each State for the fiscal year; bears to 

(B) the total of the amounts authorized to be appropriated for the programs that are apportioned under title 

23, United States Code, to all States for the fiscal year. 

(d) REDISTRIBUTION OF UNUSED OBLIGATION AUTHORITY.—Notwithstanding subsection (c), the Secretary shall, after August 1 of 

each of fiscal years 2013 through 2014— 

(1) revise a distribution of the obligation authority made 

available under subsection (c) if an amount distributed cannot 

be obligated during that fiscal year; and 

(2) redistribute sufficient amounts to those States able to 

obligate amounts in addition to those previously distributed 

during that fiscal year, giving priority to those States having 

large unobligated balances of funds apportioned under sections 

144 (as in effect on the day before the date of enactment of this 

Act) and 104 of title 23, United States Code. 

(e) APPLICABILITY OF OBLIGATION LIMITATIONS TO TRANSPOR- TATION RESEARCH PROGRAMS.— 

(1) IN GENERAL.—Except as provided in paragraph (2), obligation limitations imposed by subsection (a) shall apply to 

contract authority for transportation research programs carried 

out under— 

(A) chapter 5 of title 23, United States Code; and 

(B) division E of this Act. 

(2) EXCEPTION.—Obligation authority made available 

under paragraph (1) shall— 

(A) remain available for a period of 4 fiscal years; and 

(B) be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway 

safety construction programs for future fiscal years. 

(f) REDISTRIBUTION OF CERTAIN AUTHORIZED FUNDS.— 

(1) IN GENERAL.—Not later than 30 days after the date of 

distribution of obligation authority under subsection (c) for each 


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of fiscal years 2013 through 2014, the Secretary shall distribute 

to the States any funds (excluding funds authorized for the program under section 202 of title 23, United States Code) that— 

(A) are authorized to be appropriated for the fiscal year 

for Federal-aid highway programs; and 

(B) the Secretary determines will not be allocated to the 

States (or will not be apportioned to the States under section 204 of title 23, United States Code), and will not be 

available for obligation, for the fiscal year because of the 

imposition of any obligation limitation for the fiscal year. 

(2) RATIO.—Funds shall be distributed under paragraph (1) 

in the same proportion as the distribution of obligation authority under subsection (c)(5). 

(3) AVAILABILITY.—Funds distributed to each State under 

paragraph (1) shall be available for any purpose described in 

section 133(c) of title 23, United States Code. 

SEC. 1103. DEFINITIONS. 

(a) DEFINITIONS.—Section 101(a) of title 23, United States 

Code, is amended— 

(1) by striking paragraphs (6), (7), (9), (12), (19), (20), (24), 

(25), (26), (28), (38), and (39); 

(2) by redesignating paragraphs (2), (3), (4), (5), (8), (13), 

(14), (15), (16), (17), (18), (21), (22), (23), (27), (29), (30), (31), 

(32), (33), (34), (35), (36), and (37) as paragraphs (3), (4), (5), 

(6), (9), (12), (13), (14), (15), (16), (17), (18), (19), (20), (21), (22), 

(23), (24), (25), (26), (28), (29), (33), and (34), respectively; 

(3) by inserting after paragraph (1) the following: 

‘‘(2) ASSET MANAGEMENT.—The term ‘asset management’ 

means a strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on both engineering and economic analysis based upon quality information, to identify a structured sequence of maintenance, preservation, repair, rehabilitation, and replacement actions that will 

achieve and sustain a desired state of good repair over the 

lifecycle of the assets at minimum practicable cost.’’; 

(4) in paragraph (4) (as redesignated by paragraph (2))— 

(A) in the matter preceding subparagraph (A), by inserting ‘‘or any project eligible for assistance under this 

title’’ after ‘‘of a highway’’; 

(B) by striking subparagraph (A) and inserting the following: 

‘‘(A) preliminary engineering, engineering, and designrelated services directly relating to the construction of a 

highway project, including engineering, design, project development and management, construction project management and inspection, surveying, mapping (including the establishment of temporary and permanent geodetic control 

in accordance with specifications of the National Oceanic 

and Atmospheric Administration), and architectural-related services;’’; 

(C) in subparagraph (B)— 

(i) by inserting ‘‘reconstruction,’’ before ‘‘resurfacing’’; and 

(ii) by striking ‘‘and rehabilitation’’ and inserting 

‘‘rehabilitation, and preservation’’; 


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(D) in subparagraph (E) by striking ‘‘railway’’ and inserting ‘‘railway-highway’’; and 

(E) in subparagraph (F) by striking ‘‘obstacles’’ and inserting ‘‘hazards’’; 

(5) in paragraph (6) (as so redesignated)— 

(A) by inserting ‘‘public’’ before ‘‘highway eligible’’; and 

(B) by inserting ‘‘functionally’’ before ‘‘classified’’; 

(6) by inserting after paragraph (6) (as so redesignated) the 

following: 

‘‘(7) FEDERAL LANDS ACCESS TRANSPORTATION FACILITY.— The term ‘Federal Lands access transportation facility’ means a 

public highway, road, bridge, trail, or transit system that is located on, is adjacent to, or provides access to Federal lands for 

which title or maintenance responsibility is vested in a State, 

county, town, township, tribal, municipal, or local government. 

‘‘(8) FEDERAL LANDS TRANSPORTATION FACILITY.—The term 

‘Federal lands transportation facility’ means a public highway, 

road, bridge, trail, or transit system that is located on, is adjacent to, or provides access to Federal lands for which title and 

maintenance responsibility is vested in the Federal Government, 

and that appears on the national Federal lands transportation 

facility inventory described in section 203(c).’’; 

(7) in paragraph (11)(B) by inserting ‘‘including public 

roads on dams’’ after ‘‘drainage structure’’; 

(8) in paragraph (14) (as so redesignated)— 

(A) by striking ‘‘as a’’ and inserting ‘‘as an air quality’’; 

and 

(B) by inserting ‘‘air quality’’ before ‘‘attainment area’’; 

(9) in paragraph (18) (as so redesignated) by striking ‘‘an 

undertaking to construct a particular portion of a highway, or 

if the context so implies, the particular portion of a highway so 

constructed or any other undertaking’’ and inserting ‘‘any undertaking’’; 

(10) in paragraph (19) (as so redesignated)— 

(A) by striking ‘‘the State transportation department 

and’’; and 

(B) by inserting ‘‘and the recipient’’ after ‘‘Secretary’’; 

(11) by striking paragraph (23) (as so redesignated) and inserting the following: 

‘‘(23) SAFETY IMPROVEMENT PROJECT.—The term ‘safety improvement project’ means a strategy, activity, or project on a 

public road that is consistent with the State strategic highway 

safety plan and corrects or improves a roadway feature that 

constitutes a hazard to road users or addresses a highway safety problem.’’; 

(12) by inserting after paragraph (26) (as so redesignated) 

the following: 

‘‘(27) STATE STRATEGIC HIGHWAY SAFETY PLAN.—The term 

‘State strategic highway safety plan’ has the same meaning 

given such term in section 148(a).’’; 

(13) by striking paragraph (29) (as so redesignated) and inserting the following: 

‘‘(29) TRANSPORTATION ALTERNATIVES.—The term ‘transportation alternatives’ means any of the following activities when 

carried out as part of any program or project authorized or 


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funded under this title, or as an independent program or 

project related to surface transportation: 

‘‘(A) Construction, planning, and design of on-road and 

off-road trail facilities for pedestrians, bicyclists, and other 

nonmotorized forms of transportation, including sidewalks, 

bicycle infrastructure, pedestrian and bicycle signals, traffic 

calming techniques, lighting and other safety-related infrastructure, and transportation projects to achieve compliance 

with the Americans with Disabilities Act of 1990 (42 U.S.C. 

12101 et seq.). 

‘‘(B) Construction, planning, and design of infrastructure-related projects and systems that will provide safe 

routes for non-drivers, including children, older adults, 

and individuals with disabilities to access daily needs. 

‘‘(C) Conversion and use of abandoned railroad corridors for trails for pedestrians, bicyclists, or other nonmotorized transportation users. 

‘‘(D) Construction of turnouts, overlooks, and viewing 

areas. 

‘‘(E) Community improvement activities, including— 

‘‘(i) inventory, control, or removal of outdoor advertising; 

‘‘(ii) historic preservation and rehabilitation of historic transportation facilities; 

‘‘(iii) vegetation management practices in transportation rights-of-way to improve roadway safety, prevent 

against invasive species, and provide erosion control; 

and 

‘‘(iv) archaeological activities relating to impacts 

from implementation of a transportation project eligible under this title. 

‘‘(F) Any environmental mitigation activity, including 

pollution prevention and pollution abatement activities and 

mitigation to— 

‘‘(i) address stormwater management, control, and 

water pollution prevention or abatement related to 

highway construction or due to highway runoff, including activities described in sections 133(b)(11), 328(a), 

and 329; or 

‘‘(ii) reduce vehicle-caused wildlife mortality or to 

restore and maintain connectivity among terrestrial or 

aquatic habitats.’’; and 

(14) by inserting after paragraph (29) (as so redesignated) 

the following: 

‘‘(30) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.— 

‘‘(A) IN GENERAL.—The term ‘transportation systems 

management and operations’ means integrated strategies to 

optimize the performance of existing infrastructure through 

the implementation of multimodal and intermodal, crossjurisdictional systems, services, and projects designed to 

preserve capacity and improve security, safety, and reliability of the transportation system. 

‘‘(B) INCLUSIONS.—The term ‘transportation systems 

management and operations’ includes— 


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‘‘(i) actions such as traffic detection and surveillance, corridor management, freeway management, arterial management, active transportation and demand 

management, work zone management, emergency management, traveler information services, congestion pricing, parking management, automated enforcement, 

traffic control, commercial vehicle operations, freight 

management, and coordination of highway, rail, transit, bicycle, and pedestrian operations; and 

‘‘(ii) coordination of the implementation of regional 

transportation system management and operations investments (such as traffic incident management, traveler information services, emergency management, 

roadway weather management, intelligent transportation systems, communication networks, and information sharing systems) requiring agreements, integration, and interoperability to achieve targeted system 

performance, reliability, safety, and customer service 

levels. 

‘‘(31) TRIBAL TRANSPORTATION FACILITY.—The term ‘tribal 

transportation facility’ means a public highway, road, bridge, 

trail, or transit system that is located on or provides access to 

tribal land and appears on the national tribal transportation 

facility inventory described in section 202(b)(1). 

‘‘(32) TRUCK STOP ELECTRIFICATION SYSTEM.—The term 

‘truck stop electrification system’ means a system that delivers 

heat, air conditioning, electricity, or communications to a 

heavy-duty vehicle.’’. 

(b) SENSE OF CONGRESS.—Section 101(c) of title 23, United 

States Code, is amended by striking ‘‘system’’ and inserting ‘‘highway’’. 

SEC. 1104. NATIONAL HIGHWAY SYSTEM. 

(a) IN GENERAL.—Section 103 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 103. National Highway System 

‘‘(a) IN GENERAL.—For the purposes of this title, the Federal-aid 

system is the National Highway System, which includes the Interstate System. 

‘‘(b) NATIONAL HIGHWAY SYSTEM.— ‘‘(1) DESCRIPTION.—The National Highway System consists 

of the highway routes and connections to transportation facilities that shall— 

‘‘(A) serve major population centers, international border crossings, ports, airports, public transportation facilities, and other intermodal transportation facilities and 

other major travel destinations; 

‘‘(B) meet national defense requirements; and 

‘‘(C) serve interstate and interregional travel and commerce. 

‘‘(2) COMPONENTS.—The National Highway System described in paragraph (1) consists of the following: 

‘‘(A) The National Highway System depicted on the 

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tional Highway System and its Connections to Major Intermodal Terminals’ and dated May 24, 1996, and modifications approved by the Secretary before the date of enactment of the MAP–21. 

‘‘(B) Other urban and rural principal arterial routes, 

and border crossings on those routes, that were not included on the National Highway System before the date of 

enactment of the MAP–21. 

‘‘(C) Other connector highways (including toll facilities) 

that were not included in the National Highway System before the date of enactment of the MAP–21 but that provide 

motor vehicle access between arterial routes on the National 

Highway System and a major intermodal transportation 

facility. 

‘‘(D) A strategic highway network that— 

‘‘(i) consists of a network of highways that are important to the United States strategic defense policy, 

that provide defense access, continuity, and emergency 

capabilities for the movement of personnel, materials, 

and equipment in both peacetime and wartime, and 

that were not included on the National Highway System before the date of enactment of the MAP–21; 

‘‘(ii) may include highways on or off the Interstate 

System; and 

‘‘(iii) shall be designated by the Secretary, in consultation with appropriate Federal agencies and the 

States. 

‘‘(E) Major strategic highway network connectors that— 

‘‘(i) consist of highways that provide motor vehicle 

access between major military installations and highways that are part of the strategic highway network 

but were not included on the National Highway System 

before the date of enactment of the MAP–21; and 

‘‘(ii) shall be designated by the Secretary, in consultation with appropriate Federal agencies and the 

States. 

‘‘(3) MODIFICATIONS TO NHS.— ‘‘(A) IN GENERAL.—The Secretary may make any modification, including any modification consisting of a connector to a major intermodal terminal, to the National 

Highway System that is proposed by a State if the Secretary determines that the modification— 

‘‘(i) meets the criteria established for the National 

Highway System under this title after the date of enactment of the MAP–21; and 

‘‘(ii) enhances the national transportation characteristics of the National Highway System. 

‘‘(B) COOPERATION.— 

‘‘(i) IN GENERAL.—In proposing a modification 

under this paragraph, a State shall cooperate with 

local and regional officials. 

‘‘(ii) URBANIZED AREAS.—In an urbanized area, the 

local officials shall act through the metropolitan planning organization designated for the area under section 

134. 


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‘‘(c) INTERSTATE SYSTEM.— ‘‘(1) DESCRIPTION.— ‘‘(A) IN GENERAL.—The Dwight D. Eisenhower National System of Interstate and Defense Highways within 

the United States (including the District of Columbia and 

Puerto Rico) consists of highways designed, located, and selected in accordance with this paragraph. 

‘‘(B) DESIGN.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

highways on the Interstate System shall be designed in 

accordance with the standards of section 109(b). 

‘‘(ii) EXCEPTION.—Highways on the Interstate System in Alaska and Puerto Rico shall be designed in accordance with such geometric and construction standards as are adequate for current and probable future 

traffic demands and the needs of the locality of the 

highway. 

‘‘(C) LOCATION.—Highways on the Interstate System 

shall be located so as— 

‘‘(i) to connect by routes, as direct as practicable, 

the principal metropolitan areas, cities, and industrial 

centers; 

‘‘(ii) to serve the national defense; and 

‘‘(iii) to the maximum extent practicable, to connect 

at suitable border points with routes of continental importance in Canada and Mexico. 

‘‘(D) SELECTION OF ROUTES.—To the maximum extent 

practicable, each route of the Interstate System shall be selected by joint action of the State transportation departments of the State in which the route is located and the adjoining States, in cooperation with local and regional officials, and subject to the approval of the Secretary. 

‘‘(2) MAXIMUM MILEAGE.—The mileage of highways on the 

Interstate System shall not exceed 43,000 miles, exclusive of 

designations under paragraph (4). 

‘‘(3) MODIFICATIONS.—The Secretary may approve or require modifications to the Interstate System in a manner consistent with the policies and procedures established under this 

subsection. 

‘‘(4) INTERSTATE SYSTEM DESIGNATIONS.— 

‘‘(A) ADDITIONS.—If the Secretary determines that a 

highway on the National Highway System meets all standards of a highway on the Interstate System and that the 

highway is a logical addition or connection to the Interstate 

System, the Secretary may, upon the affirmative recommendation of the State or States in which the highway 

is located, designate the highway as a route on the Interstate System. 

‘‘(B) DESIGNATIONS AS FUTURE INTERSTATE SYSTEM

ROUTES.— 

‘‘(i) IN GENERAL.—Subject to clauses (ii) through 

(vi), if the Secretary determines that a highway on the 

National Highway System would be a logical addition 

or connection to the Interstate System and would qualify for designation as a route on the Interstate System 


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under subparagraph (A) if the highway met all standards of a highway on the Interstate System, the Secretary may, upon the affirmative recommendation of 

the State or States in which the highway is located, 

designate the highway as a future Interstate System 

route. 

‘‘(ii) WRITTEN AGREEMENT.—A designation under 

clause (i) shall be made only upon the written agreement of each State described in that clause that the 

highway will be constructed to meet all standards of a 

highway on the Interstate System by not later than the 

date that is 25 years after the date of the agreement. 

‘‘(iii) FAILURE TO COMPLETE CONSTRUCTION.—If a 

State described in clause (i) has not substantially completed the construction of a highway designated under 

this subparagraph by the date specified in clause (ii), 

the Secretary shall remove the designation of the highway as a future Interstate System route. 

‘‘(iv) EFFECT OF REMOVAL.—Removal of the designation of a highway under clause (iii) shall not preclude the Secretary from designating the highway as a 

route on the Interstate System under subparagraph (A) 

or under any other provision of law providing for addition to the Interstate System. 

‘‘(v) RETROACTIVE EFFECT.—An agreement described in clause (ii) that is entered into before August 

10, 2005, shall be deemed to include the 25-year time 

limitation described in that clause, regardless of any 

earlier construction completion date in the agreement. 

‘‘(vi) REFERENCES.—No law, rule, regulation, map, 

document, or other record of the United States, or of 

any State or political subdivision of a State, shall refer 

to any highway designated as a future Interstate System route under this subparagraph, and no such highway shall be signed or marked, as a highway on the 

Interstate System, until such time as the highway— 

‘‘(I) is constructed to the geometric and construction standards for the Interstate System; and 

‘‘(II) has been designated as a route on the 

Interstate System. 

‘‘(C) FINANCIAL RESPONSIBILITY.—Except as provided 

in this title, the designation of a highway under this paragraph shall create no additional Federal financial responsibility with respect to the highway. 

‘‘(5) EXEMPTION OF INTERSTATE SYSTEM.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), the Interstate System shall not be considered to be a 

historic site under section 303 of title 49 or section 138 of 

this title, regardless of whether the Interstate System or 

portions or elements of the Interstate System are listed on, 

or eligible for listing on, the National Register of Historic 

Places. 

‘‘(B) INDIVIDUAL ELEMENTS.—Subject to subparagraph 

(C)— 


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‘‘(i) the Secretary shall determine, through the administrative process established for exempting the 

Interstate System from section 106 of the National Historic Preservation Act (16 U.S.C. 470f), those individual elements of the Interstate System that possess 

national or exceptional historic significance (such as a 

historic bridge or a highly significant engineering feature); and 

‘‘(ii) those elements shall be considered to be historic sites under section 303 of title 49 or section 138 

of this title, as applicable. 

‘‘(C) CONSTRUCTION, MAINTENANCE, RESTORATION, AND

REHABILITATION ACTIVITIES.—Subparagraph (B) does not 

prohibit a State from carrying out construction, maintenance, preservation, restoration, or rehabilitation activities 

for a portion of the Interstate System referred to in subparagraph (B) upon compliance with section 303 of title 49 

or section 138 of this title, as applicable, and section 106 

of the National Historic Preservation Act (16 U.S.C. 470f).’’. 

(b) INCLUSION OF CERTAIN ROUTE SEGMENTS ON INTERSTATE

SYSTEM.— 

(1) IN GENERAL.—Section 1105(e)(5)(A) of the Intermodal 

Surface Transportation Efficiency Act of 1991 (105 Stat. 2031; 

109 Stat. 597; 115 Stat. 872) is amended— 

(A) in the first sentence, by striking ‘‘and in subsections 

(c)(18) and (c)(20)’’ and inserting ‘‘, in subsections (c)(18) 

and (c)(20), and in subparagraphs (A)(iii) and (B) of subsection (c)(26)’’; and 

(B) in the second sentence, by striking ‘‘that the segment’’ and all that follows through the period and inserting 

‘‘that the segment meets the Interstate System design standards approved by the Secretary under section 109(b) of title 

23, United States Code, and is planned to connect to an existing Interstate System segment by the date that is 25 

years after the date of enactment of the MAP–21.’’. 

(2) ROUTE DESIGNATION.—Section 1105(e)(5)(C)(i) of the 

Intermodal Surface Transportation Efficiency Act of 1991 (105 

Stat. 2032; 109 Stat. 598) is amended by adding at the end the 

following: ‘‘The routes referred to subparagraphs (A)(iii) and 

(B)(i) of subsection (c)(26) are designated as Interstate Route I11.’’. 

(c) CONFORMING AMENDMENTS.— 

(1) ANALYSIS.—The analysis for chapter 1 of title 23, 

United States Code, is amended by striking the item relating to 

section 103 and inserting the following: 

‘‘103. National Highway System.’’. 

(2) SECTION 113.—Section 113 of title 23, United States 

Code, is amended— 

(A) in subsection (a) by striking ‘‘the Federal-aid systems’’ and inserting ‘‘Federal-aid highways’’; and 

(B) in subsection (b), in the first sentence, by striking 

‘‘of the Federal-aid systems’’ and inserting ‘‘Federal-aid 

highway’’. 


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(3) SECTION 123.—Section 123(a) of title 23, United States 

Code, is amended in the first sentence by striking ‘‘Federal-aid 

system’’ and inserting ‘‘Federal-aid highway’’. 

(4) SECTION 217.—Section 217(b) of title 23, United States 

Code, is amended in the subsection heading by striking ‘‘NA- TIONAL HIGHWAY SYSTEM’’ and inserting ‘‘NATIONAL HIGHWAY

PERFORMANCE PROGRAM’’. 

(5) SECTION 304.—Section 304 of title 23, United States 

Code, is amended in the first sentence by striking ‘‘the Federalaid highway systems’’ and inserting ‘‘Federal-aid highways’’. 

(6) SECTION 317.—Section 317(d) of title 23, United States 

Code, is amended by striking ‘‘system’’ and inserting ‘‘highway’’. 

SEC. 1105. APPORTIONMENT. 

(a) IN GENERAL.—Section 104 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 104. Apportionment 

‘‘(a) ADMINISTRATIVE EXPENSES.— ‘‘(1) IN GENERAL.—There are authorized to be appropriated 

from the Highway Trust Fund (other than the Mass Transit Account) to be made available to the Secretary for administrative 

expenses of the Federal Highway Administration— ‘‘(A) $454,180,326 for fiscal year 2013; and 

‘‘(B) $440,000,000 for fiscal year 2014. 

‘‘(2) PURPOSES.—The amounts authorized to be appropriated by this subsection shall be used— 

‘‘(A) to administer the provisions of law to be funded 

from appropriations for the Federal-aid highway program 

and programs authorized under chapter 2; 

‘‘(B) to make transfers of such sums as the Secretary 

determines to be appropriate to the Appalachian Regional 

Commission for administrative activities associated with 

the Appalachian development highway system; and 

‘‘(C) to reimburse, as appropriate, the Office of Inspector General of the Department of Transportation for the 

conduct of annual audits of financial statements in accordance with section 3521 of title 31. 

‘‘(3) AVAILABILITY.—The amounts made available under 

paragraph (1) shall remain available until expended. 

‘‘(b) DIVISION OF STATE APPORTIONMENTS AMONG PROGRAMS.— The Secretary shall distribute the amount apportioned to a State for 

a fiscal year under subsection (c) among the national highway performance program, the surface transportation program, the highway 

safety improvement program, and the congestion mitigation and air 

quality improvement program, and to carry out section 134 as follows: 

‘‘(1) NATIONAL HIGHWAY PERFORMANCE PROGRAM.—For the 

national highway performance program, 63.7 percent of the 

amount remaining after distributing amounts under paragraphs (4) and (5). 

‘‘(2) SURFACE TRANSPORTATION PROGRAM.—For the surface 

transportation program, 29.3 percent of the amount remaining 

after distributing amounts under paragraphs (4) and (5). 

‘‘(3) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—For the 

highway safety improvement program, 7 percent of the amount 


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remaining after distributing amounts under paragraphs (4) 

and (5). 

‘‘(4) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.—For the congestion mitigation and air quality 

improvement program, an amount determined by multiplying 

the amount determined for the State under subsection (c) by the 

proportion that— 

‘‘(A) the amount apportioned to the State for the congestion mitigation and air quality improvement program 

for fiscal year 2009; bears to 

‘‘(B) the total amount of funds apportioned to the State 

for that fiscal year for the programs referred to in section 

105(a)(2) (except for the high priority projects program referred to in section 105(a)(2)(H)), as in effect on the day before the date of enactment of the MAP–21. 

‘‘(5) METROPOLITAN PLANNING.—To carry out section 134, 

an amount determined by multiplying the amount determined 

for the State under subsection (c) by the proportion that— 

‘‘(A) the amount apportioned to the State to carry out 

section 134 for fiscal year 2009; bears to 

‘‘(B) the total amount of funds apportioned to the State 

for that fiscal year for the programs referred to in section 

105(a)(2) (except for the high priority projects program referred to in section 105(a)(2)(H)), as in effect on the day before the date of enactment of the MAP–21. 

‘‘(c) CALCULATION OF STATE AMOUNTS.— 

‘‘(1) FOR FISCAL YEAR 2013.— 

‘‘(A) CALCULATION OF AMOUNT.—For fiscal year 2013, 

the amount for each State of combined apportionments for 

the national highway performance program under section 

119, the surface transportation program under section 133, 

the highway safety improvement program under section 

148, the congestion mitigation and air quality improvement 

program under section 149, and to carry out section 134 

shall be equal to the combined amount of apportionments 

that the State received for fiscal year 2012. 

‘‘(B) STATE APPORTIONMENT.—On October 1 of such fiscal year, the Secretary shall apportion the sum authorized 

to be appropriated for expenditure on the national highway 

performance program under section 119, the surface transportation program under section 133, the highway safety 

improvement program under section 148, the congestion 

mitigation and air quality improvement program under 

section 149, and to carry out section 134 in accordance with 

subparagraph (A). 

‘‘(2) FOR FISCAL YEAR 2014.— 

‘‘(A) STATE SHARE.—For fiscal year 2014, the amount 

for each State of combined apportionments for the national 

highway performance program under section 119, the surface transportation program under section 133, the highway safety improvement program under section 148, the 

congestion mitigation and air quality improvement program under section 149, and to carry out section 134 shall 

be determined as follows: 


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‘‘(i) INITIAL AMOUNT.—The initial amount for each 

State shall be determined by multiplying the total 

amount available for apportionment by the share for 

each State which shall be equal to the proportion 

that— 

‘‘(I) the amount of apportionments that the 

State received for fiscal year 2012; bears to 

‘‘(II) the amount of those apportionments received by all States for that fiscal year. 

‘‘(ii) ADJUSTMENTS TO AMOUNTS.—The initial 

amounts resulting from the calculation under clause (i) 

shall be adjusted to ensure that, for each State, the 

amount of combined apportionments for the programs 

shall not be less than 95 percent of the estimated tax 

payments attributable to highway users in the State 

paid into the Highway Trust Fund (other than the 

Mass Transit Account) in the most recent fiscal year for 

which data are available. 

‘‘(B) STATE APPORTIONMENT.—On October 1 of such fiscal year, the Secretary shall apportion the sum authorized 

to be appropriated for expenditure on the national highway 

performance program under section 119, the surface transportation program under section 133, the highway safety 

improvement program under section 148, the congestion 

mitigation and air quality improvement program under 

section 149, and to carry out section 134 in accordance with 

subparagraph (A). 

‘‘(d) METROPOLITAN PLANNING.— ‘‘(1) USE OF AMOUNTS.— 

‘‘(A) USE.— 

‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

the amounts apportioned to a State under subsection 

(b)(5) shall be made available by the State to the metropolitan planning organizations responsible for carrying out section 134 in the State. 

‘‘(ii) STATES RECEIVING MINIMUM APPORTION- MENT.—A State that received the minimum apportionment for use in carrying out section 134 for fiscal year 

2009 may, subject to the approval of the Secretary, use 

the funds apportioned under subsection (b)(5) to fund 

transportation planning outside of urbanized areas. 

‘‘(B) UNUSED FUNDS.—Any funds that are not used to 

carry out section 134 may be made available by a metropolitan planning organization to the State to fund activities 

under section 135. 

‘‘(2) DISTRIBUTION OF AMOUNTS WITHIN STATES.— 

‘‘(A) IN GENERAL.—The distribution within any State of 

the planning funds made available to organizations under 

paragraph (1) shall be in accordance with a formula that— 

‘‘(i) is developed by each State and approved by the 

Secretary; and 

‘‘(ii) takes into consideration, at a minimum, population, status of planning, attainment of air quality 

standards, metropolitan area transportation needs, 

and other factors necessary to provide for an approVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00032 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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priate distribution of funds to carry out section 134 

and other applicable requirements of Federal law. 

‘‘(B) REIMBURSEMENT.—Not later than 15 business 

days after the date of receipt by a State of a request for reimbursement of expenditures made by a metropolitan planning organization for carrying out section 134, the State 

shall reimburse, from amounts distributed under this paragraph to the metropolitan planning organization by the 

State, the metropolitan planning organization for those expenditures. 

‘‘(3) DETERMINATION OF POPULATION FIGURES.—For the 

purpose of determining population figures under this subsection, the Secretary shall use the latest available data from 

the decennial census conducted under section 141(a) of title 13, 

United States Code. 

‘‘(e) CERTIFICATION OF APPORTIONMENTS.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) on October 1 of each fiscal year, certify to each of 

the State transportation departments the amount that has 

been apportioned to the State under this section for the fiscal year; and 

‘‘(B) to permit the States to develop adequate plans for 

the use of amounts apportioned under this section, advise 

each State of the amount that will be apportioned to the 

State under this section for a fiscal year not later than 90 

days before the beginning of the fiscal year for which the 

sums to be apportioned are authorized. 

‘‘(2) NOTICE TO STATES.—If the Secretary has not made an 

apportionment under this section for a fiscal year beginning 

after September 30, 1998, by not later than the date that is the 

twenty-first day of that fiscal year, the Secretary shall submit, 

by not later than that date, to the Committee on Transportation 

and Infrastructure of the House of Representatives and the 

Committee on Environment and Public Works of the Senate, a 

written statement of the reason for not making the apportionment in a timely manner. 

‘‘(3) APPORTIONMENT CALCULATIONS.— 

‘‘(A) IN GENERAL.—The calculation of official apportionments of funds to the States under this title is a primary responsibility of the Department and shall be carried 

out only by employees (and not contractors) of the Department. 

‘‘(B) PROHIBITION ON USE OF FUNDS TO HIRE CONTRACTORS.—None of the funds made available under this title 

shall be used to hire contractors to calculate the apportionments of funds to States. 

‘‘(f) TRANSFER OF HIGHWAY AND TRANSIT FUNDS.— 

‘‘(1) TRANSFER OF HIGHWAY FUNDS FOR TRANSIT

PROJECTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), 

amounts made available for transit projects or transportation planning under this title may be transferred to and 

administered by the Secretary in accordance with chapter 

53 of title 49. 


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‘‘(B) NON-FEDERAL SHARE.—The provisions of this title 

relating to the non-Federal share shall apply to the 

amounts transferred under subparagraph (A). 

‘‘(2) TRANSFER OF TRANSIT FUNDS FOR HIGHWAY

PROJECTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), 

amounts made available for highway projects or transportation planning under chapter 53 of title 49 may be transferred to and administered by the Secretary in accordance 

with this title. 

‘‘(B) NON-FEDERAL SHARE.—The provisions of chapter 

53 of title 49 relating to the non-Federal share shall apply 

to amounts transferred under subparagraph (A). 

‘‘(3) TRANSFER OF FUNDS AMONG STATES OR TO FEDERAL

HIGHWAY ADMINISTRATION.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary may, at the request of a State, transfer amounts 

apportioned or allocated under this title to the State to another State, or to the Federal Highway Administration, for 

the purpose of funding 1 or more projects that are eligible 

for assistance with amounts so apportioned or allocated. 

‘‘(B) APPORTIONMENT.—The transfer shall have no effect on any apportionment of amounts to a State under this 

section. 

‘‘(C) FUNDS SUBALLOCATED TO URBANIZED AREAS.— Amounts that are apportioned or allocated to a State under 

subsection (b)(3) (as in effect on the day before the date of 

enactment of the MAP–21) or subsection (b)(2) and attributed to an urbanized area of a State with a population of 

more than 200,000 individuals under section 133(d) may be 

transferred under this paragraph only if the metropolitan 

planning organization designated for the area concurs, in 

writing, with the transfer request. 

‘‘(4) TRANSFER OF OBLIGATION AUTHORITY.—Obligation authority for amounts transferred under this subsection shall be 

transferred in the same manner and amount as the amounts for 

the projects that are transferred under this section. 

‘‘(g) REPORT TO CONGRESS.—For each fiscal year, the Secretary 

shall make available to the public, in a user-friendly format via the 

Internet, a report that describes— 

‘‘(1) the amount obligated, by each State, for Federal-aid 

highways and highway safety construction programs during the 

preceding fiscal year; 

‘‘(2) the balance, as of the last day of the preceding fiscal 

year, of the unobligated apportionment of each State by fiscal 

year under this section; 

‘‘(3) the balance of unobligated sums available for expenditure at the discretion of the Secretary for such highways and 

programs for the fiscal year; and 

‘‘(4) the rates of obligation of funds apportioned or set aside 

under this section, according to— 

‘‘(A) program; 

‘‘(B) funding category of subcategory; 

‘‘(C) type of improvement; 

‘‘(D) State; and 


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‘‘(E) sub-State geographical area, including urbanized 

and rural areas, on the basis of the population of each such 

area.’’. 

(b) CONFORMING AMENDMENT.—Section 146(a) of title 23, 

United States Code, is amended by striking ‘‘sections 104(b)(l) and 

104(b)(3)’’ and inserting ‘‘section 104(b)(2)’’. 

SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM. 

(a) IN GENERAL.—Section 119 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 119. National highway performance program 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish and implement a national highway performance program under this section. 

‘‘(b) PURPOSES.—The purposes of the national highway performance program shall be— 

‘‘(1) to provide support for the condition and performance 

of the National Highway System; 

‘‘(2) to provide support for the construction of new facilities 

on the National Highway System; and 

‘‘(3) to ensure that investments of Federal-aid funds in 

highway construction are directed to support progress toward 

the achievement of performance targets established in an asset 

management plan of a State for the National Highway System. 

‘‘(c) ELIGIBLE FACILITIES.—Except as provided in subsection (d), 

to be eligible for funding apportioned under section 104(b)(1) to 

carry out this section, a facility shall be located on the National 

Highway System, as defined in section 103. 

‘‘(d) ELIGIBLE PROJECTS.—Funds apportioned to a State to 

carry out the national highway performance program may be obligated only for a project on an eligible facility that is— 

‘‘(1)(A) a project or part of a program of projects supporting 

progress toward the achievement of national performance goals 

for improving infrastructure condition, safety, mobility, or 

freight movement on the National Highway System; and 

‘‘(B) consistent with sections 134 and 135; and 

‘‘(2) for 1 or more of the following purposes: 

‘‘(A) Construction, reconstruction, resurfacing, restoration, rehabilitation, preservation, or operational improvement of segments of the National Highway System. 

‘‘(B) Construction, replacement (including replacement 

with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and 

protection against extreme events) of bridges on the National Highway System. 

‘‘(C) Construction, replacement (including replacement 

with fill material), rehabilitation, preservation, and protection (including impact protection measures, security countermeasures, and protection against extreme events) of tunnels on the National Highway System. 

‘‘(D) Inspection and evaluation, as described in section 

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ing signs and sign structures, earth retaining walls, and 

drainage structures. 

‘‘(E) Training of bridge and tunnel inspectors, as described in section 144. 

‘‘(F) Construction, rehabilitation, or replacement of existing ferry boats and ferry boat facilities, including approaches, that connect road segments of the National Highway System. 

‘‘(G) Construction, reconstruction, resurfacing, restoration, rehabilitation, and preservation of, and operational 

improvements for, a Federal-aid highway not on the National Highway System, and construction of a transit 

project eligible for assistance under chapter 53 of title 49, 

if— 

‘‘(i) the highway project or transit project is in the 

same corridor as, and in proximity to, a fully accesscontrolled highway designated as a part of the National Highway System; 

‘‘(ii) the construction or improvements will reduce 

delays or produce travel time savings on the fully access-controlled highway described in clause (i) and improve regional traffic flow; and 

‘‘(iii) the construction or improvements are more 

cost-effective, as determined by benefit-cost analysis, 

than an improvement to the fully access-controlled 

highway described in clause (i). 

‘‘(H) Bicycle transportation and pedestrian walkways 

in accordance with section 217. 

‘‘(I) Highway safety improvements for segments of the 

National Highway System. 

‘‘(J) Capital and operating costs for traffic and traveler 

information monitoring, management, and control facilities 

and programs. 

‘‘(K) Development and implementation of a State asset 

management plan for the National Highway System in accordance with this section, including data collection, maintenance, and integration and the cost associated with obtaining, updating, and licensing software and equipment 

required for risk-based asset management and performance-based management. 

‘‘(L) Infrastructure-based intelligent transportation systems capital improvements. 

‘‘(M) Environmental restoration and pollution abatement in accordance with section 328. 

‘‘(N) Control of noxious weeds and aquatic noxious 

weeds and establishment of native species in accordance 

with section 329. 

‘‘(O) Environmental mitigation efforts related to 

projects funded under this section, as described in subsection (g). 

‘‘(P) Construction of publicly owned intracity or intercity bus terminals servicing the National Highway System. 

‘‘(e) STATE PERFORMANCE MANAGEMENT.— 

‘‘(1) IN GENERAL.—A State shall develop a risk-based asset 

management plan for the National Highway System to improve 


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or preserve the condition of the assets and the performance of 

the system. 

‘‘(2) PERFORMANCE DRIVEN PLAN.—A State asset management plan shall include strategies leading to a program of 

projects that would make progress toward achievement of the 

State targets for asset condition and performance of the National Highway System in accordance with section 150(d) and 

supporting the progress toward the achievement of the national 

goals identified in section 150(b). 

‘‘(3) SCOPE.—In developing a risk-based asset management 

plan, the Secretary shall encourage States to include all infrastructure assets within the right-of-way corridor in such plan. 

‘‘(4) PLAN CONTENTS.—A State asset management plan 

shall, at a minimum, be in a form that the Secretary determines to be appropriate and include— 

‘‘(A) a summary listing of the pavement and bridge assets on the National Highway System in the State, including a description of the condition of those assets; 

‘‘(B) asset management objectives and measures; 

‘‘(C) performance gap identification; 

‘‘(D) lifecycle cost and risk management analysis; 

‘‘(E) a financial plan; and 

‘‘(F) investment strategies. 

‘‘(5) REQUIREMENT FOR PLAN.—Notwithstanding section 

120, with respect to the second fiscal year beginning after the 

date of establishment of the process established in paragraph 

(8) or any subsequent fiscal year, if the Secretary determines 

that a State has not developed and implemented a State asset 

management plan consistent with this section, the Federal 

share payable on account of any project or activity carried out 

by the State in that fiscal year under this section shall be 65 

percent. 

‘‘(6) CERTIFICATION OF PLAN DEVELOPMENT PROCESS.— ‘‘(A) IN GENERAL.—Not later than 90 days after the 

date on which a State submits a request for approval of the 

process used by the State to develop the State asset management plan for the National Highway System, the Secretary shall— 

‘‘(i) review the process; and 

‘‘(ii)(I) certify that the process meets the requirements established by the Secretary; or 

‘‘(II) deny certification and specify actions necessary for the State to take to correct deficiencies in the 

State process. 

‘‘(B) RECERTIFICATION.—Not less frequently than once 

every 4 years, the Secretary shall review and recertify that 

the process used by a State to develop and maintain the 

State asset management plan for the National Highway 

System meets the requirements for the process, as established by the Secretary. 

‘‘(C) OPPORTUNITY TO CURE.—If the Secretary denies 

certification under subparagraph (A), the Secretary shall 

provide the State with— 

‘‘(i) not less than 90 days to cure the deficiencies of 

the plan, during which time period all penalties and 


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other legal impacts of a denial of certification shall be 

stayed; and 

‘‘(ii) a written statement of the specific actions the 

Secretary determines to be necessary for the State to 

cure the plan. 

‘‘(7) PERFORMANCE ACHIEVEMENT.—A State that does not 

achieve or make significant progress toward achieving the targets of the State for performance measures described in section 

150(d) for the National Highway System for 2 consecutive reports submitted under this paragraph shall include in the next 

report submitted a description of the actions the State will undertake to achieve the targets. 

‘‘(8) PROCESS.—Not later than 18 months after the date of 

enactment of the MAP–21, the Secretary shall, by regulation 

and in consultation with State departments of transportation, 

establish the process to develop the State asset management 

plan described in paragraph (1). 

‘‘(f) INTERSTATE SYSTEM AND NHS BRIDGE CONDITIONS.— ‘‘(1) CONDITION OF INTERSTATE SYSTEM.— 

‘‘(A) PENALTY.—If, during 2 consecutive reporting periods, the condition of the Interstate System, excluding 

bridges on the Interstate System, in a State falls below the 

minimum condition level established by the Secretary 

under section 150(c)(3), the State shall be required, during 

the following fiscal year— 

‘‘(i) to obligate, from the amounts apportioned to 

the State under section 104(b)(1), an amount that is 

not less than the amount of funds apportioned to the 

State for fiscal year 2009 under the Interstate maintenance program for the purposes described in this section (as in effect on the day before the date of enactment of the MAP–21), except that for each year after 

fiscal year 2013, the amount required to be obligated 

under this clause shall be increased by 2 percent over 

the amount required to be obligated in the previous fiscal year; and 

‘‘(ii) to transfer, from the amounts apportioned to 

the State under section 104(b)(2) (other than amounts 

suballocated to metropolitan areas and other areas of 

the State under section 133(d)) to the apportionment of 

the State under section 104(b)(1), an amount equal to 

10 percent of the amount of funds apportioned to the 

State for fiscal year 2009 under the Interstate maintenance program for the purposes described in this section (as in effect on the day before the date of enactment of the MAP–21). 

‘‘(B) RESTORATION.—The obligation requirement for the 

Interstate System in a State required by subparagraph (A) 

for a fiscal year shall remain in effect for each subsequent 

fiscal year until such time as the condition of the Interstate 

System in the State exceeds the minimum condition level 

established by the Secretary. 

‘‘(2) CONDITION OF NHS BRIDGES.— 

‘‘(A) PENALTY.—If the Secretary determines that, for the 

3-year-period preceding the date of the determination, more 


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than 10 percent of the total deck area of bridges in the 

State on the National Highway System is located on 

bridges that have been classified as structurally deficient, 

an amount equal to 50 percent of funds apportioned to such 

State for fiscal year 2009 to carry out section 144 (as in effect the day before enactment of MAP–21) shall be set aside 

from amounts apportioned to a State for a fiscal year under 

section 104(b)(1) only for eligible projects on bridges on the 

National Highway System. 

‘‘(B) RESTORATION.—The set-aside requirement for 

bridges on the National Highway System in a State under 

subparagraph (A) for a fiscal year shall remain in effect for 

each subsequent fiscal year until such time as less than 10 

percent of the total deck area of bridges in the State on the 

National Highway System is located on bridges that have 

been classified as structurally deficient, as determined by 

the Secretary. 

‘‘(g) ENVIRONMENTAL MITIGATION.— ‘‘(1) ELIGIBLE ACTIVITIES.—In accordance with all applicable Federal law (including regulations), environmental mitigation efforts referred to in subsection (d)(2)(O) include participation in natural habitat and wetlands mitigation efforts relating 

to projects funded under this title, which may include— 

‘‘(A) participation in mitigation banking or other thirdparty mitigation arrangements, such as— 

‘‘(i) the purchase of credits from commercial mitigation banks; 

‘‘(ii) the establishment and management of agencysponsored mitigation banks; and 

‘‘(iii) the purchase of credits or establishment of inlieu fee mitigation programs; 

‘‘(B) contributions to statewide and regional efforts to 

conserve, restore, enhance, and create natural habitats and 

wetlands; and 

‘‘(C) the development of statewide and regional environmental protection plans, including natural habitat and 

wetland conservation and restoration plans. 

‘‘(2) INCLUSION OF OTHER ACTIVITIES.—The banks, efforts, 

and plans described in paragraph (1) include any such banks, 

efforts, and plans developed in accordance with applicable law 

(including regulations). 

‘‘(3) TERMS AND CONDITIONS.—The following terms and 

conditions apply to natural habitat and wetlands mitigation efforts under this subsection: 

‘‘(A) Contributions to the mitigation effort may— 

‘‘(i) take place concurrent with, or in advance of, 

commitment of funding under this title to a project or 

projects; and 

‘‘(ii) occur in advance of project construction only 

if the efforts are consistent with all applicable requirements of Federal law (including regulations) and State 

transportation planning processes. 

‘‘(B) Credits from any agency-sponsored mitigation 

bank that are attributable to funding under this section 

may be used only for projects funded under this title, unless 


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34 

the agency pays to the Secretary an amount equal to the 

Federal funds attributable to the mitigation bank credits 

the agency uses for purposes other than mitigation of a 

project funded under this title. 

‘‘(4) PREFERENCE.—At the discretion of the project sponsor, 

preference shall be given, to the maximum extent practicable, to 

mitigating an environmental impact through the use of a mitigation bank, in-lieu fee, or other third-party mitigation arrangement, if the use of credits from the mitigation bank or inlieu fee, or the other third-party mitigation arrangement for the 

project, is approved by the applicable Federal agency.’’. 

(b) TRANSITION PERIOD.— (1) IN GENERAL.—Except as provided in paragraph (2), 

until such date as a State has in effect an approved asset management plan and has established performance targets as described in sections 119 and 150 of title 23, United States Code, 

that will contribute to achieving the national goals for the condition and performance of the National Highway System, but 

not later than 18 months after the date on which the Secretary 

promulgates the final regulation required under section 150(c) 

of that title, the Secretary shall approve obligations of funds apportioned to a State to carry out the national highway performance program under section 119 of that title, for projects that 

otherwise meet the requirements of that section. 

(2) EXTENSION.—The Secretary may extend the transition 

period for a State under paragraph (1) if the Secretary determines that the State has made a good faith effort to establish 

an asset management plan and performance targets referred to 

in that paragraph. 

(c) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by striking the item relating to section 119 and inserting the following: 

‘‘119. National highway performance program.’’. 

SEC. 1107. EMERGENCY RELIEF. 

Section 125 of title 23, United States Code, is amended to read 

as follows: 

‘‘§ 125. Emergency relief 

‘‘(a) IN GENERAL.—Subject to this section and section 120, an 

emergency fund is authorized for expenditure by the Secretary for 

the repair or reconstruction of highways, roads, and trails, in any 

area of the United States, including Indian reservations, that the 

Secretary finds have suffered serious damage as a result of— 

‘‘(1) a natural disaster over a wide area, such as by a flood, 

hurricane, tidal wave, earthquake, severe storm, or landslide; or 

‘‘(2) catastrophic failure from any external cause. 

‘‘(b) RESTRICTION ON ELIGIBILITY.— 

‘‘(1) DEFINITION OF CONSTRUCTION PHASE.—In this subsection, the term ‘construction phase’ means the phase of physical construction of a highway or bridge facility that is separate 

from any other identified phases, such as planning, design, or 

right-of-way phases, in the State transportation improvement 

program. 

‘‘(2) RESTRICTION.—In no case shall funds be used under 

this section for the repair or reconstruction of a bridge— 


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35 

‘‘(A) that has been permanently closed to all vehicular 

traffic by the State or responsible local official because of 

imminent danger of collapse due to a structural deficiency 

or physical deterioration; or 

‘‘(B) if a construction phase of a replacement structure 

is included in the approved Statewide transportation improvement program at the time of an event described in 

subsection (a). 

‘‘(c) FUNDING.— 

‘‘(1) IN GENERAL.—Subject to the limitations described in 

paragraph (2), there are authorized to be appropriated from the 

Highway Trust Fund (other than the Mass Transit Account) 

such sums as are necessary to establish the fund authorized by 

this section and to replenish that fund on an annual basis. 

‘‘(2) LIMITATIONS.—The limitations referred to in paragraph (1) are that— 

‘‘(A) not more than $100,000,000 is authorized to be obligated in any 1 fiscal year commencing after September 

30, 1980, to carry out this section, except that, if for any fiscal year the total of all obligations under this section is less 

than the amount authorized to be obligated for the fiscal 

year, the unobligated balance of that amount shall— 

‘‘(i) remain available until expended; and 

‘‘(ii) be in addition to amounts otherwise available 

to carry out this section for each year; and 

‘‘(B)(i) pending such appropriation or replenishment, 

the Secretary may obligate from any funds appropriated at 

any time for obligation in accordance with this title, including existing Federal-aid appropriations, such sums as are 

necessary for the immediate prosecution of the work herein 

authorized; and 

‘‘(ii) funds obligated under this subparagraph shall be 

reimbursed from the appropriation or replenishment. 

‘‘(d) ELIGIBILITY.— 

‘‘(1) IN GENERAL.—The Secretary may expend funds from 

the emergency fund authorized by this section only for the repair or reconstruction of highways on Federal-aid highways in 

accordance with this chapter, except that— 

‘‘(A) no funds shall be so expended unless an emergency 

has been declared by the Governor of the State with concurrence by the Secretary, unless the President has declared 

the emergency to be a major disaster for the purposes of the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for which concurrence of 

the Secretary is not required; and 

‘‘(B) the Secretary has received an application from the 

State transportation department that includes a comprehensive list of all eligible project sites and repair costs 

by not later than 2 years after the natural disaster or catastrophic failure. 

‘‘(2) COST LIMITATION.— 

‘‘(A) DEFINITION OF COMPARABLE FACILITY.—In this 

paragraph, the term ‘comparable facility’ means a facility 

that meets the current geometric and construction standVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00041 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ards required for the types and volume of traffic that the 

facility will carry over its design life. 

‘‘(B) LIMITATION.—The total cost of a project funded 

under this section may not exceed the cost of repair or reconstruction of a comparable facility. 

‘‘(3) DEBRIS REMOVAL.—The costs of debris removal shall be 

an eligible expense under this section only for— 

‘‘(A) an event not declared a major disaster or emergency by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 

et seq.); or 

‘‘(B) an event declared a major disaster or emergency 

by the President under that Act if the debris removal is not 

eligible for assistance under section 403, 407, or 502 of that 

Act (42 U.S.C. 5170b, 5173, 5192). 

‘‘(4) TERRITORIES.—The total obligations for projects under 

this section for any fiscal year in the Virgin Islands, Guam, 

American Samoa, and the Commonwealth of the Northern Mariana Islands shall not exceed $20,000,000. 

‘‘(5) SUBSTITUTE TRAFFIC.—Notwithstanding any other provision of this section, actual and necessary costs of maintenance 

and operation of ferryboats or additional transit service providing temporary substitute highway traffic service, less the 

amount of fares charged for comparable service, may be expended from the emergency fund authorized by this section for 

Federal-aid highways. 

‘‘(e) TRIBAL TRANSPORTATION FACILITIES, FEDERAL LANDS

TRANSPORTATION FACILITIES, AND PUBLIC ROADS ON FEDERAL

LANDS.— 

‘‘(1) DEFINITION OF OPEN TO PUBLIC TRAVEL.—In this subsection, the term ‘open to public travel’ means, with respect to 

a road, that, except during scheduled periods, extreme weather 

conditions, or emergencies, the road is open to the general public for use with a standard passenger vehicle, without restrictive 

gates or prohibitive signs or regulations, other than for general 

traffic control or restrictions based on size, weight, or class of 

registration. 

‘‘(2) EXPENDITURE OF FUNDS.—Notwithstanding subsection 

(d)(1), the Secretary may expend funds from the emergency fund 

authorized by this section, independently or in cooperation with 

any other branch of the Federal Government, a State agency, a 

tribal government, an organization, or a person, for the repair 

or reconstruction of tribal transportation facilities, Federal 

lands transportation facilities, and other federally owned roads 

that are open to public travel, whether or not those facilities are 

Federal-aid highways. 

‘‘(3) REIMBURSEMENT.— 

‘‘(A) IN GENERAL.—The Secretary may reimburse Federal and State agencies (including political subdivisions) 

for expenditures made for projects determined eligible 

under this section, including expenditures for emergency repairs made before a determination of eligibility. 

‘‘(B) TRANSFERS.—With respect to reimbursements described in subparagraph (A)— 


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‘‘(i) those reimbursements to Federal agencies and 

Indian tribal governments shall be transferred to the 

account from which the expenditure was made, or to a 

similar account that remains available for obligation; 

and 

‘‘(ii) the budget authority associated with the expenditure shall be restored to the agency from which 

the authority was derived and shall be available for 

obligation until the end of the fiscal year following the 

year in which the transfer occurs. 

‘‘(f) TREATMENT OF TERRITORIES.—For purposes of this section, 

the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands shall be considered to be 

States and parts of the United States, and the chief executive officer 

of each such territory shall be considered to be a Governor of a 

State. 

‘‘(g) PROTECTING PUBLIC SAFETY AND MAINTAINING ROAD- WAYS.—The Secretary may use not more than 5 percent of amounts 

from the emergency fund authorized by this section to carry out 

projects that the Secretary determines are necessary to protect the 

public safety or to maintain or protect roadways that are included 

within the scope of an emergency declaration by the Governor of the 

State or by the President, in accordance with this section, and the 

Governor deems to be an ongoing concern in order to maintain vehicular traffic on the roadway.’’. 

SEC. 1108. SURFACE TRANSPORTATION PROGRAM. 

(a) ELIGIBLE PROJECTS.—Section 133(b) of title 23, United 

States Code, is amended— 

(1) in the matter preceding paragraph (1) by striking ‘‘section 104(b)(3)’’ and inserting ‘‘section 104(b)(2)’’; 

(2) by striking paragraph (1); 

(3) by redesignating paragraphs (2) through (15) as paragraphs (5) through (18), respectively; 

(4) by inserting before paragraph (5) (as so redesignated) 

the following: 

‘‘(1) Construction, reconstruction, rehabilitation, resurfacing, restoration, preservation, or operational improvements 

for highways, including construction of designated routes of the 

Appalachian development highway system and local access 

roads under section 14501 of title 40. 

‘‘(2) Replacement (including replacement with fill material), 

rehabilitation, preservation, protection (including painting, 

scour countermeasures, seismic retrofits, impact protection 

measures, security countermeasures, and protection against extreme events) and application of calcium magnesium acetate, 

sodium acetate/formate, or other environmentally acceptable, 

minimally corrosive anti-icing and deicing compositions for 

bridges (and approaches to bridges and other elevated structures) and tunnels on public roads of all functional classifications, including any such construction or reconstruction necessary to accommodate other transportation modes. 

‘‘(3) Construction of a new bridge or tunnel at a new location on a Federal-aid highway. 

‘‘(4) Inspection and evaluation of bridges and tunnels and 

training of bridge and tunnel inspectors (as defined in section 


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144), and inspection and evaluation of other highway assets (including signs, retaining walls, and drainage structures).’’; 

(5) by striking paragraph (6) (as so redesignated) and inserting the following: 

‘‘(6) Carpool projects, fringe and corridor parking facilities 

and programs, including electric vehicle and natural gas vehicle infrastructure in accordance with section 137, bicycle transportation and pedestrian walkways in accordance with section 

217, and the modifications of public sidewalks to comply with 

the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 

et seq.).’’; 

(6) by striking paragraph (7) (as so redesignated) and inserting the following: 

‘‘(7) Highway and transit safety infrastructure improvements and programs, installation of safety barriers and nets on 

bridges, hazard eliminations, projects to mitigate hazards 

caused by wildlife, and railway-highway grade crossings.’’; 

(7) in paragraph (11) (as so redesignated) by striking ‘‘enhancement activities’’ and inserting ‘‘alternatives’’; 

(8) by striking paragraph (14) (as so redesignated) and inserting the following: 

‘‘(14) Environmental mitigation efforts relating to projects 

funded under this title in the same manner and to the same extent as such activities are eligible under section 119(g).’’; and 

(9) by inserting after paragraph (18) (as so redesignated) 

the following: 

‘‘(19) Projects and strategies designed to support congestion 

pricing, including electric toll collection and travel demand 

management strategies and programs. 

‘‘(20) Recreational trails projects eligible for funding under 

section 206. 

‘‘(21) Construction of ferry boats and ferry terminal facilities eligible for funding under section 129(c). 

‘‘(22) Border infrastructure projects eligible for funding 

under section 1303 of the SAFETEA–LU (23 U.S.C. 101 note; 

Public Law 109–59). 

‘‘(23) Truck parking facilities eligible for funding under section 1401 of the MAP–21. 

‘‘(24) Development and implementation of a State asset 

management plan for the National Highway System in accordance with section 119, including data collection, maintenance, 

and integration and the costs associated with obtaining, updating, and licensing software and equipment required for risk 

based asset management and performance based management, 

and for similar activities related to the development and implementation of a performance based management program for 

other public roads. 

‘‘(25) A project that, if located within the boundaries of a 

port terminal, includes only such surface transportation infrastructure modifications as are necessary to facilitate direct 

intermodal interchange, transfer, and access into and out of the 

port. 

‘‘(26) Construction and operational improvements for any 

minor collector if— 


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‘‘(A) the minor collector, and the project to be carried 

out with respect to the minor collector, are in the same corridor as, and in proximity to, a Federal-aid highway designated as part of the National Highway System; 

‘‘(B) the construction or improvements will enhance the 

level of service on the Federal-aid highway described in 

subparagraph (A) and improve regional traffic flow; and 

‘‘(C) the construction or improvements are more cost-effective, as determined by a benefit-cost analysis, than an 

improvement to the Federal-aid highway described in subparagraph (A).’’. 

(b) LOCATION OF PROJECTS.—Section 133 of title 23, United 

States Code, is amended by striking subsection (c) and inserting the 

following: 

‘‘(c) LOCATION OF PROJECTS.—Surface transportation program 

projects may not be undertaken on roads functionally classified as 

local or rural minor collectors unless the roads were on a Federalaid highway system on January 1, 1991, except— 

‘‘(1) as provided in subsection (g); 

‘‘(2) for projects described in paragraphs (2), (4), (6), (7), 

(11), (20), (25), and (26) of subsection (b); and 

‘‘(3) as approved by the Secretary.’’. 

(c) ALLOCATION OF APPORTIONED FUNDS.—Section 133 of the 

title 23, United States Code, is amended by striking subsection (d) 

and inserting the following: 

‘‘(d) ALLOCATIONS OF APPORTIONED FUNDS TO AREAS BASED ON

POPULATION.— 

‘‘(1) CALCULATION.—Of the funds apportioned to a State 

under section 104(b)(2)— 

‘‘(A) 50 percent for a fiscal year shall be obligated 

under this section, in proportion to their relative shares of 

the population of the State— 

‘‘(i) in urbanized areas of the State with an urbanized area population of over 200,000; 

‘‘(ii) in areas of the State other than urban areas 

with a population greater than 5,000; and 

‘‘(iii) in other areas of the State; and 

‘‘(B) 50 percent may be obligated in any area of the 

State. 

‘‘(2) METROPOLITAN AREAS.—Funds attributed to an urbanized area under paragraph (1)(A)(i) may be obligated in the 

metropolitan area established under section 134 that encompasses the urbanized area. 

‘‘(3) CONSULTATION WITH REGIONAL TRANSPORTATION PLANNING ORGANIZATIONS.—For purposes of paragraph (1)(A)(ii), before obligating funding attributed to an area with a population 

greater than 5,000 and less than 200,000, a State shall consult 

with the regional transportation planning organizations that 

represent the area, if any. 

‘‘(4) DISTRIBUTION AMONG URBANIZED AREAS OF OVER

200,000 POPULATION.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), the amount of funds that a State is required to obligate 

under paragraph (1)(A)(i) shall be obligated in urbanized 


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areas described in paragraph (1)(A)(i) based on the relative 

population of the areas. 

‘‘(B) OTHER FACTORS.—The State may obligate the 

funds described in subparagraph (A) based on other factors 

if the State and the relevant metropolitan planning organizations jointly apply to the Secretary for the permission to 

base the obligation on other factors and the Secretary 

grants the request. 

‘‘(5) APPLICABILITY OF PLANNING REQUIREMENTS.—Programming and expenditure of funds for projects under this section shall be consistent with sections 134 and 135.’’. 

(d) ADMINISTRATION.—Section 133 of title 23, United States 

Code, is amended by striking subsection (e) and inserting the following: 

‘‘(e) ADMINISTRATION.— 

‘‘(1) SUBMISSION OF PROJECT AGREEMENT.—For each fiscal 

year, each State shall submit a project agreement that— 

‘‘(A) certifies that the State will meet all the requirements of this section; and 

‘‘(B) notifies the Secretary of the amount of obligations 

needed to carry out the program under this section. 

‘‘(2) REQUEST FOR ADJUSTMENTS OF AMOUNTS.—Each State 

shall request from the Secretary such adjustments to the 

amount of obligations referred to in paragraph (1)(B) as the 

State determines to be necessary. 

‘‘(3) EFFECT OF APPROVAL BY THE SECRETARY.—Approval by 

the Secretary of a project agreement under paragraph (1) shall 

be deemed a contractual obligation of the United States to pay 

surface transportation program funds made available under 

this title.’’. 

(e) OBLIGATION AUTHORITY.—Section 133(f)(1) of title 23, 

United States Code, is amended by striking ‘‘2004 through 2006 and 

the period of fiscal years 2007 through 2009’’ and inserting ‘‘2011 

through 2014’’. 

(f) BRIDGES NOT ON FEDERAL-AID HIGHWAYS.—Section 133 of 

the title 23, United States Code, is amended by adding at the end 

the following: 

‘‘(g) BRIDGES NOT ON FEDERAL-AID HIGHWAYS.— ‘‘(1) DEFINITION OF OFF-SYSTEM BRIDGE.—In this subsection, the term ‘off-system bridge’ means a highway bridge located on a public road, other than a bridge on a Federal-aid 

highway. 

‘‘(2) SPECIAL RULE.— 

‘‘(A) SET-ASIDE.—Of the amounts apportioned to a 

State for fiscal year 2013 and each fiscal year thereafter 

under this section, the State shall obligate for activities described in subsection (b)(2) for off-system bridges an 

amount that is not less than 15 percent of the amount of 

funds apportioned to the State for the highway bridge program for fiscal year 2009, except that amounts allocated 

under subsection (d) shall not be obligated to carry out this 

subsection. 

‘‘(B) REDUCTION OF EXPENDITURES.—The Secretary, 

after consultation with State and local officials, may reduce 

the requirement for expenditures for off-system bridges 


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under subparagraph (A) with respect to the State if the Secretary determines that the State has inadequate needs to 

justify the expenditure. 

‘‘(3) CREDIT FOR BRIDGES NOT ON FEDERAL-AID HIGHWAYS.—Notwithstanding any other provision of law, with respect to any project not on a Federal-aid highway for the replacement of a bridge or rehabilitation of a bridge that is wholly funded from State and local sources, is eligible for Federal 

funds under this section, is noncontroversial, is certified by the 

State to have been carried out in accordance with all standards 

applicable to such projects under this section, and is determined by the Secretary upon completion to be no longer a deficient bridge— 

‘‘(A) any amount expended after the date of enactment 

of this subsection from State and local sources for the 

project in excess of 20 percent of the cost of construction of 

the project may be credited to the non-Federal share of the 

cost of other bridge projects in the State that are eligible for 

Federal funds under this section; and 

‘‘(B) that crediting shall be conducted in accordance 

with procedures established by the Secretary. 

‘‘(h) SPECIAL RULE FOR AREAS OF LESS THAN 5,000 POPU- LATION.— 

‘‘(1) SPECIAL RULE.—Notwithstanding subsection (c), and 

except as provided in paragraph (2), up to 15 percent of the 

amounts required to be obligated by a State under subsection 

(d)(1)(A)(iii) for each of fiscal years 2013 through 2014 may be 

obligated on roads functionally classified as minor collectors. 

‘‘(2) SUSPENSION.—The Secretary may suspend the application of paragraph (1) with respect to a State if the Secretary determines that the authority provided under paragraph (1) is 

being used excessively by the State.’’. 

SEC. 1109. WORKFORCE DEVELOPMENT. 

(a) ON-THE-JOB TRAINING.—Section 140(b) of title 23, United 

States Code, is amended— 

(1) in the second sentence, by striking ‘‘Whenever apportionments are made under section 104(b)(3) of this title,’’ and inserting ‘‘From administrative funds made available under section 104(a),’’; and 

(2) in the fourth sentence, by striking ‘‘and the bridge program under section 144’’. 

(b) DISADVANTAGED BUSINESS ENTERPRISE.—Section 140(c) of 

title 23, United States Code, is amended in the second sentence by 

striking ‘‘Whenever apportionments are made under section 

104(b)(3),’’ and inserting ‘‘From administrative funds made available under section 104(a),’’. 

SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS. 

Section 143 of title 23, United States Code, is amended— 

(1) in subsection (b)— 

(A) by striking paragraph (2) and inserting the following: 

‘‘(2) FUNDING.— 

‘‘(A) IN GENERAL.—From administrative funds made 

available under section 104(a), the Secretary shall deduct 


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42 

such sums as are necessary, not to exceed $10,000,000 for 

each of fiscal years 2013 and 2014, to carry out this section. 

‘‘(B) ALLOCATION OF FUNDS.—Funds made available to 

carry out this section may be allocated to the Internal Revenue Service and the States at the discretion of the Secretary, except that of funds so made available for each fiscal year, $2,000,000 shall be available only to carry out 

intergovernmental enforcement efforts, including research 

and training.’’; and 

(B) in paragraph (8) by striking ‘‘section 104(b)(3)’’ and 

inserting ‘‘section 104(b)(2)’’; and 

(2) in subsection (c)(3) by striking ‘‘for each of fiscal years 

2005 through 2009,’’ and inserting ‘‘for each fiscal year,’’. 

SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION STANDARDS. 

(a) IN GENERAL.—Section 144 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 144. National bridge and tunnel inventory and inspection 

standards 

‘‘(a) FINDINGS AND DECLARATIONS.— ‘‘(1) FINDINGS.—Congress finds that— 

‘‘(A) the condition of the bridges of the United States 

has improved since the date of enactment of the Transportation Equity Act for the 21st Century (Public Law 105– 

178; 112 Stat. 107), yet continued improvement to bridge 

conditions is essential to protect the safety of the traveling 

public and allow for the efficient movement of people and 

goods on which the economy of the United States relies; 

and 

‘‘(B) the systematic preventative maintenance of 

bridges, and replacement and rehabilitation of deficient 

bridges, should be undertaken through an overall asset 

management approach to transportation investment. 

‘‘(2) DECLARATIONS.—Congress declares that it is in the 

vital interest of the United States— 

‘‘(A) to inventory, inspect, and improve the condition of 

the highway bridges and tunnels of the United States; 

‘‘(B) to use a data-driven, risk-based approach and 

cost-effective strategy for systematic preventative maintenance, replacement, and rehabilitation of highway bridges 

and tunnels to ensure safety and extended service life; 

‘‘(C) to use performance-based bridge management systems to assist States in making timely investments; 

‘‘(D) to ensure accountability and link performance outcomes to investment decisions; and 

‘‘(E) to ensure connectivity and access for residents of 

rural areas of the United States through strategic investments in National Highway System bridges and bridges on 

all public roads. 

‘‘(b) NATIONAL BRIDGE AND TUNNEL INVENTORIES.—The Secretary, in consultation with the States and Federal agencies with jurisdiction over highway bridges and tunnels, shall— 

‘‘(1) inventory all highway bridges on public roads, on and 

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ally owned bridges, that are bridges over waterways, other topographical barriers, other highways, and railroads; 

‘‘(2) inventory all tunnels on public roads, on and off Federal-aid highways, including tribally owned and Federally 

owned tunnels; 

‘‘(3) classify the bridges according to serviceability, safety, 

and essentiality for public use, including the potential impacts 

to emergency evacuation routes and to regional and national 

freight and passenger mobility if the serviceability of the bridge 

is restricted or diminished; 

‘‘(4) based on that classification, assign each a risk-based 

priority for systematic preventative maintenance, replacement, 

or rehabilitation; and 

‘‘(5) determine the cost of replacing each structurally deficient bridge identified under this subsection with a comparable 

facility or the cost of rehabilitating the bridge. 

‘‘(c) GENERAL BRIDGE AUTHORITY.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2) and 

notwithstanding any other provision of law, the General Bridge 

Act of 1946 (33 U.S.C. 525 et seq.) shall apply to bridges authorized to be replaced, in whole or in part, by this title. 

‘‘(2) EXCEPTION.—Section 502(b) of the General Bridge Act 

of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 3, 

1899 (33 U.S.C. 401), shall not apply to any bridge constructed, 

reconstructed, rehabilitated, or replaced with assistance under 

this title, if the bridge is over waters that— 

‘‘(A) are not used and are not susceptible to use in the 

natural condition of the bridge or by reasonable improvement as a means to transport interstate or foreign commerce; and 

‘‘(B) are— 

‘‘(i) not tidal; or 

‘‘(ii) if tidal, used only by recreational boating, 

fishing, and other small vessels that are less than 21 

feet in length. 

‘‘(d) INVENTORY UPDATES AND REPORTS.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) annually revise the inventories authorized by subsection (b); and 

‘‘(B) submit to the Committee on Transportation and 

Infrastructure of the House of Representatives and the 

Committee on Environment and Public Works of the Senate 

a report on the inventories. 

‘‘(2) INSPECTION REPORT.—Not later than 2 years after the 

date of enactment of the MAP–21, each State and appropriate 

Federal agency shall report element level data to the Secretary, 

as each bridge is inspected pursuant to this section, for all 

highway bridges on the National Highway System. 

‘‘(3) GUIDANCE.—The Secretary shall provide guidance to 

States and Federal agencies for implementation of this subsection, while respecting the existing inspection schedule of each 

State. 

‘‘(4) BRIDGES NOT ON NATIONAL HIGHWAY SYSTEM.—The 

Secretary shall— 


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‘‘(A) conduct a study on the benefits, cost-effectiveness, 

and feasibility of requiring element-level data collection for 

bridges not on the National Highway System; and 

‘‘(B) submit to the Committee on Transportation and 

Infrastructure of the House of Representatives and the 

Committee on Environment and Public Works of the Senate 

a report on the results of the study. 

‘‘(e) BRIDGES WITHOUT TAXING POWERS.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

law, any bridge that is owned and operated by an agency that 

does not have taxing powers and whose functions include operating a federally assisted public transit system subsidized by 

toll revenues shall be eligible for assistance under this title, but 

the amount of such assistance shall in no event exceed the cumulative amount which such agency has expended for capital 

and operating costs to subsidize such transit system. 

‘‘(2) INSUFFICIENT ASSETS.—Before authorizing an expenditure of funds under this subsection, the Secretary shall determine that the applicant agency has insufficient reserves, surpluses, and projected revenues (over and above those required 

for bridge and transit capital and operating costs) to fund the 

bridge project or activity eligible for assistance under this title. 

‘‘(3) CREDITING OF NON-FEDERAL FUNDS.—Any non-Federal 

funds expended for the seismic retrofit of the bridge may be 

credited toward the non-Federal share required as a condition 

of receipt of any Federal funds for seismic retrofit of the bridge 

made available after the date of the expenditure. 

‘‘(f) REPLACEMENT OF DESTROYED BRIDGES AND FERRY BOAT

SERVICE.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

law, a State may use the funds apportioned under section 

104(b)(2) to construct any bridge that replaces— 

‘‘(A) any low water crossing (regardless of the length of 

the low water crossing); 

‘‘(B) any bridge that was destroyed prior to January 1, 

1965; 

‘‘(C) any ferry that was in existence on January 1, 

1984; or 

‘‘(D) any road bridge that is rendered obsolete as a result of a Corps of Engineers flood control or channelization 

project and is not rebuilt with funds from the Corps of Engineers. 

‘‘(2) FEDERAL SHARE.—The Federal share payable on any 

bridge construction carried out under paragraph (1) shall be 80 

percent of the cost of the construction. 

‘‘(g) HISTORIC BRIDGES.— 

‘‘(1) DEFINITION OF HISTORIC BRIDGE.—In this subsection, 

the term ‘historic bridge’ means any bridge that is listed on, or 

eligible for listing on, the National Register of Historic Places. 

‘‘(2) COORDINATION.—The Secretary shall, in cooperation 

with the States, encourage the retention, rehabilitation, adaptive reuse, and future study of historic bridges. 

‘‘(3) STATE INVENTORY.—The Secretary shall require each 

State to complete an inventory of all bridges on and off FederalVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00050 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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aid highways to determine the historic significance of the 

bridges. 

‘‘(4) ELIGIBILITY.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), reasonable costs associated with actions to preserve, or reduce 

the impact of a project under this chapter on, the historic 

integrity of a historic bridge shall be eligible as reimbursable project costs under section 133 if the load capacity and 

safety features of the historic bridge are adequate to serve 

the intended use for the life of the historic bridge. 

‘‘(B) BRIDGES NOT USED FOR VEHICLE TRAFFIC.—In the 

case of a historic bridge that is no longer used for motorized vehicular traffic, the costs eligible as reimbursable 

project costs pursuant to this chapter shall not exceed the 

estimated cost of demolition of the historic bridge. 

‘‘(5) PRESERVATION.—Any State that proposes to demolish a 

historic bridge for a replacement project with funds made available to carry out this section shall first make the historic bridge 

available for donation to a State, locality, or responsible private 

entity if the State, locality, or responsible entity enters into an 

agreement— 

‘‘(A) to maintain the bridge and the features that give 

the historic bridge its historic significance; and 

‘‘(B) to assume all future legal and financial responsibility for the historic bridge, which may include an agreement to hold the State transportation department harmless 

in any liability action. 

‘‘(6) COSTS INCURRED.— 

‘‘(A) IN GENERAL.—Costs incurred by the State to preserve a historic bridge (including funds made available to 

the State, locality, or private entity to enable it to accept the 

bridge) shall be eligible as reimbursable project costs under 

this chapter in an amount not to exceed the cost of demolition. 

‘‘(B) ADDITIONAL FUNDING.—Any bridge preserved pursuant to this paragraph shall not be eligible for any other 

funds authorized pursuant to this title. 

‘‘(h) NATIONAL BRIDGE AND TUNNEL INSPECTION STANDARDS.— 

‘‘(1) REQUIREMENT.— 

‘‘(A) IN GENERAL.—The Secretary shall establish and 

maintain inspection standards for the proper inspection 

and evaluation of all highway bridges and tunnels for safety and serviceability. 

‘‘(B) UNIFORMITY.—The standards under this subsection shall be designed to ensure uniformity of the inspections and evaluations. 

‘‘(2) MINIMUM REQUIREMENTS OF INSPECTION STANDARDS.— 

The standards established under paragraph (1) shall, at a minimum— 

‘‘(A) specify, in detail, the method by which the inspections shall be carried out by the States, Federal agencies, 

and tribal governments; 

‘‘(B) establish the maximum time period between inspections; 


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‘‘(C) establish the qualifications for those charged with 

carrying out the inspections; 

‘‘(D) require each State, Federal agency, and tribal government to maintain and make available to the Secretary 

on request— 

‘‘(i) written reports on the results of highway 

bridge and tunnel inspections and notations of any action taken pursuant to the findings of the inspections; 

and 

‘‘(ii) current inventory data for all highway bridges 

and tunnels reflecting the findings of the most recent 

highway bridge and tunnel inspections conducted; and 

‘‘(E) establish a procedure for national certification of 

highway bridge inspectors and tunnel inspectors. 

‘‘(3) STATE COMPLIANCE WITH INSPECTION STANDARDS.—The 

Secretary shall, at a minimum— 

‘‘(A) establish, in consultation with the States, Federal 

agencies, and interested and knowledgeable private organizations and individuals, procedures to conduct reviews of 

State compliance with— 

‘‘(i) the standards established under this subsection; and 

‘‘(ii) the calculation or reevaluation of bridge load 

ratings; and 

‘‘(B) establish, in consultation with the States, Federal 

agencies, and interested and knowledgeable private organizations and individuals, procedures for States to follow in 

reporting to the Secretary— 

‘‘(i) critical findings relating to structural or safetyrelated deficiencies of highway bridges and tunnels; 

and 

‘‘(ii) monitoring activities and corrective actions 

taken in response to a critical finding described in 

clause (i). 

‘‘(4) REVIEWS OF STATE COMPLIANCE.— ‘‘(A) IN GENERAL.—The Secretary shall annually review 

State compliance with the standards established under this 

section. 

‘‘(B) NONCOMPLIANCE.—If an annual review in accordance with subparagraph (A) identifies noncompliance by a 

State, the Secretary shall— 

‘‘(i) issue a report detailing the issues of the noncompliance by December 31 of the calendar year in 

which the review was made; and 

‘‘(ii) provide the State an opportunity to address 

the noncompliance by— 

‘‘(I) developing a corrective action plan to remedy the noncompliance; or 

‘‘(II) resolving the issues of noncompliance not 

later than 45 days after the date of notification. 

‘‘(5) PENALTY FOR NONCOMPLIANCE.— ‘‘(A) IN GENERAL.—If a State fails to satisfy the requirements of paragraph (4)(B) by August 1 of the calendar year 

following the year of a finding of noncompliance, the Secretary shall, on October 1 of that year, and each year thereVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00052 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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after as may be necessary, require the State to dedicate 

funds apportioned to the State under sections 119 and 133 

after the date of enactment of the MAP–21 to correct the 

noncompliance with the minimum inspection standards established under this subsection. 

‘‘(B) AMOUNT.—The amount of the funds to be directed 

to correcting noncompliance in accordance with subparagraph (A) shall— 

‘‘(i) be determined by the State based on an analysis of the actions needed to address the noncompliance; and 

‘‘(ii) require approval by the Secretary. 

‘‘(6) UPDATE OF STANDARDS.—Not later than 3 years after 

the date of enactment of the MAP–21, the Secretary shall update inspection standards to cover— 

‘‘(A) the methodology, training, and qualifications for 

inspectors; and 

‘‘(B) the frequency of inspection. 

‘‘(7) RISK-BASED APPROACH.—In carrying out the revisions 

required by paragraph (6), the Secretary shall consider a riskbased approach to determining the frequency of bridge inspections. 

‘‘(i) TRAINING PROGRAM FOR BRIDGE AND TUNNEL INSPECTORS.— 

‘‘(1) IN GENERAL.—The Secretary, in cooperation with the 

State transportation departments, shall maintain a program 

designed to train appropriate personnel to carry out highway 

bridge and tunnel inspections. 

‘‘(2) REVISIONS.—The training program shall be revised 

from time to time to take into account new and improved techniques. 

‘‘(j) AVAILABILITY OF FUNDS.—In carrying out this section— 

‘‘(1) the Secretary may use funds made available to the Secretary under sections 104(a) and 503; 

‘‘(2) a State may use amounts apportioned to the State 

under section 104(b)(1) and 104(b)(3); 

‘‘(3) an Indian tribe may use funds made available to the 

Indian tribe under section 202; and 

‘‘(4) a Federal agency may use funds made available to the 

agency under section 503.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by striking the item relating to section 144 and inserting the following: 

‘‘144. National bridge and tunnel inventory and inspection standards.’’. 

SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 

(a) IN GENERAL.—Section 148 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 148. Highway safety improvement program 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

apply: 

‘‘(1) HIGH RISK RURAL ROAD.—The term ‘high risk rural 

road’ means any roadway functionally classified as a rural 

major or minor collector or a rural local road with significant 


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safety risks, as defined by a State in accordance with an updated State strategic highway safety plan. 

‘‘(2) HIGHWAY BASEMAP.—The term ‘highway basemap’ 

means a representation of all public roads that can be used to 

geolocate attribute data on a roadway. 

‘‘(3) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—The term 

‘highway safety improvement program’ means projects, activities, plans, and reports carried out under this section. 

‘‘(4) HIGHWAY SAFETY IMPROVEMENT PROJECT.— ‘‘(A) IN GENERAL.—The term ‘highway safety improvement project’ means strategies, activities, and projects on a 

public road that are consistent with a State strategic highway safety plan and— 

‘‘(i) correct or improve a hazardous road location 

or feature; or 

‘‘(ii) address a highway safety problem. 

‘‘(B) INCLUSIONS.—The term ‘highway safety improvement project’ includes, but is not limited to, a project for 1 

or more of the following: 

‘‘(i) An intersection safety improvement. 

‘‘(ii) Pavement and shoulder widening (including 

addition of a passing lane to remedy an unsafe condition). 

‘‘(iii) Installation of rumble strips or another warning device, if the rumble strips or other warning devices do not adversely affect the safety or mobility of 

bicyclists and pedestrians, including persons with disabilities. 

‘‘(iv) Installation of a skid-resistant surface at an 

intersection or other location with a high frequency of 

crashes. 

‘‘(v) An improvement for pedestrian or bicyclist 

safety or safety of persons with disabilities. 

‘‘(vi) Construction and improvement of a railwayhighway grade crossing safety feature, including installation of protective devices. 

‘‘(vii) The conduct of a model traffic enforcement 

activity at a railway-highway crossing. 

‘‘(viii) Construction of a traffic calming feature. 

‘‘(ix) Elimination of a roadside hazard. 

‘‘(x) Installation, replacement, and other improvement of highway signage and pavement markings, or 

a project to maintain minimum levels of 

retroreflectivity, that addresses a highway safety problem consistent with a State strategic highway safety 

plan. 

‘‘(xi) Installation of a priority control system for 

emergency vehicles at signalized intersections. 

‘‘(xii) Installation of a traffic control or other warning device at a location with high crash potential. 

‘‘(xiii) Transportation safety planning. 

‘‘(xiv) Collection, analysis, and improvement of 

safety data. 

‘‘(xv) Planning integrated interoperable emergency 

communications equipment, operational activities, or 


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traffic enforcement activities (including police assistance) relating to work zone safety. 

‘‘(xvi) Installation of guardrails, barriers (including barriers between construction work zones and traffic lanes for the safety of road users and workers), and 

crash attenuators. 

‘‘(xvii) The addition or retrofitting of structures or 

other measures to eliminate or reduce crashes involving 

vehicles and wildlife. 

‘‘(xviii) Installation of yellow-green signs and signals at pedestrian and bicycle crossings and in school 

zones. 

‘‘(xix) Construction and operational improvements 

on high risk rural roads. 

‘‘(xx) Geometric improvements to a road for safety 

purposes that improve safety. 

‘‘(xxi) A road safety audit. 

‘‘(xxii) Roadway safety infrastructure improvements consistent with the recommendations included in 

the publication of the Federal Highway Administration 

entitled ‘Highway Design Handbook for Older Drivers 

and Pedestrians’ (FHWA–RD–01–103), dated May 2001 

or as subsequently revised and updated. 

‘‘(xxiii) Truck parking facilities eligible for funding 

under section 1401 of the MAP–21. 

‘‘(xxiv) Systemic safety improvements. 

‘‘(5) MODEL INVENTORY OF ROADWAY ELEMENTS.—The term 

‘model inventory of roadway elements’ means the listing and 

standardized coding by the Federal Highway Administration of 

roadway and traffic data elements critical to safety management, analysis, and decisionmaking. 

‘‘(6) PROJECT TO MAINTAIN MINIMUM LEVELS OF

RETROREFLECTIVITY.—The term ‘project to maintain minimum 

levels of retroreflectivity’ means a project that is designed to 

maintain a highway sign or pavement marking retroreflectivity 

at or above the minimum levels prescribed in Federal or State 

regulations. 

‘‘(7) ROAD SAFETY AUDIT.—The term ‘road safety audit’ 

means a formal safety performance examination of an existing 

or future road or intersection by an independent multidisciplinary audit team. 

‘‘(8) ROAD USERS.—The term ‘road user’ means a motorist, 

passenger, public transportation operator or user, truck driver, 

bicyclist, motorcyclist, or pedestrian, including a person with 

disabilities. 

‘‘(9) SAFETY DATA.— 

‘‘(A) IN GENERAL.—The term ‘safety data’ means crash, 

roadway, and traffic data on a public road. 

‘‘(B) INCLUSION.—The term ‘safety data’ includes, in 

the case of a railway-highway grade crossing, the characteristics of highway and train traffic, licensing, and vehicle 

data. 

‘‘(10) SAFETY PROJECT UNDER ANY OTHER SECTION.— 


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‘‘(A) IN GENERAL.—The term ‘safety project under any 

other section’ means a project carried out for the purpose of 

safety under any other section of this title. 

‘‘(B) INCLUSION.—The term ‘safety project under any 

other section’ includes— 

‘‘(i) a project consistent with the State strategic 

highway safety plan that promotes the awareness of the 

public and educates the public concerning highway 

safety matters (including motorcycle safety); 

‘‘(ii) a project to enforce highway safety laws; and 

‘‘(iii) a project to provide infrastructure and infrastructure-related equipment to support emergency services. 

‘‘(11) STATE HIGHWAY SAFETY IMPROVEMENT PROGRAM.— 

The term ‘State highway safety improvement program’ means a 

program of highway safety improvement projects, activities, 

plans and reports carried out as part of the Statewide transportation improvement program under section 135(g). 

‘‘(12) STATE STRATEGIC HIGHWAY SAFETY PLAN.—The term 

‘State strategic highway safety plan’ means a comprehensive 

plan, based on safety data, developed by a State transportation 

department that— 

‘‘(A) is developed after consultation with— 

‘‘(i) a highway safety representative of the Governor 

of the State; 

‘‘(ii) regional transportation planning organizations and metropolitan planning organizations, if any; 

‘‘(iii) representatives of major modes of transportation; 

‘‘(iv) State and local traffic enforcement officials; 

‘‘(v) a highway-rail grade crossing safety representative of the Governor of the State; 

‘‘(vi) representatives conducting a motor carrier 

safety program under section 31102, 31106, or 31309 of 

title 49; 

‘‘(vii) motor vehicle administration agencies; 

‘‘(viii) county transportation officials; 

‘‘(ix) State representatives of nonmotorized users; 

and 

‘‘(x) other major Federal, State, tribal, and local 

safety stakeholders; 

‘‘(B) analyzes and makes effective use of State, regional, 

local, or tribal safety data; 

‘‘(C) addresses engineering, management, operation, 

education, enforcement, and emergency services elements 

(including integrated, interoperable emergency communications) of highway safety as key factors in evaluating highway projects; 

‘‘(D) considers safety needs of, and high-fatality segments of, all public roads, including non-State-owned public roads and roads on tribal land; 

‘‘(E) considers the results of State, regional, or local 

transportation and highway safety planning processes; 

‘‘(F) describes a program of strategies to reduce or 

eliminate safety hazards; 


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‘‘(G) is approved by the Governor of the State or a responsible State agency; 

‘‘(H) is consistent with section 135(g); and 

‘‘(I) is updated and submitted to the Secretary for approval as required under subsection (d)(2). 

‘‘(13) SYSTEMIC SAFETY IMPROVEMENT.—The term ‘systemic 

safety improvement’ means an improvement that is widely implemented based on high-risk roadway features that are correlated with particular crash types, rather than crash frequency. 

‘‘(b) PROGRAM.— ‘‘(1) IN GENERAL.—The Secretary shall carry out a highway 

safety improvement program. 

‘‘(2) PURPOSE.—The purpose of the highway safety improvement program shall be to achieve a significant reduction in 

traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land. 

‘‘(c) ELIGIBILITY.— ‘‘(1) IN GENERAL.—To obligate funds apportioned under section 104(b)(3) to carry out this section, a State shall have in effect a State highway safety improvement program under which 

the State— 

‘‘(A) develops, implements, and updates a State strategic highway safety plan that identifies and analyzes highway safety problems and opportunities as provided in subsections (a)(12) and (d); 

‘‘(B) produces a program of projects or strategies to reduce identified safety problems; and 

‘‘(C) evaluates the strategic highway safety plan on a 

regularly recurring basis in accordance with subsection 

(d)(1) to ensure the accuracy of the data and priority of proposed strategies. 

‘‘(2) IDENTIFICATION AND ANALYSIS OF HIGHWAY SAFETY

PROBLEMS AND OPPORTUNITIES.—As part of the State highway 

safety improvement program, a State shall— 

‘‘(A) have in place a safety data system with the ability 

to perform safety problem identification and countermeasure analysis— 

‘‘(i) to improve the timeliness, accuracy, completeness, uniformity, integration, and accessibility of the 

safety data on all public roads, including non-Stateowned public roads and roads on tribal land in the 

State; 

‘‘(ii) to evaluate the effectiveness of data improvement efforts; 

‘‘(iii) to link State data systems, including traffic 

records, with other data systems within the State; 

‘‘(iv) to improve the compatibility and interoperability of safety data with other State transportationrelated data systems and the compatibility and interoperability of State safety data systems with data systems of other States and national data systems; 

‘‘(v) to enhance the ability of the Secretary to observe and analyze national trends in crash occurrences, 

rates, outcomes, and circumstances; and 


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‘‘(vi) to improve the collection of data on nonmotorized crashes; 

‘‘(B) based on the analysis required by subparagraph 

(A)— 

‘‘(i) identify hazardous locations, sections, and elements (including roadside obstacles, railway-highway 

crossing needs, and unmarked or poorly marked roads) 

that constitute a danger to motorists (including motorcyclists), bicyclists, pedestrians, and other highway 

users; 

‘‘(ii) using such criteria as the State determines to 

be appropriate, establish the relative severity of those 

locations, in terms of crashes (including crash rates), 

fatalities, serious injuries, traffic volume levels, and 

other relevant data; 

‘‘(iii) identify the number of fatalities and serious 

injuries on all public roads by location in the State; 

‘‘(iv) identify highway safety improvement projects 

on the basis of crash experience, crash potential, crash 

rate, or other data-supported means; and 

‘‘(v) consider which projects maximize opportunities to advance safety; 

‘‘(C) adopt strategic and performance-based goals 

that— 

‘‘(i) address traffic safety, including behavioral 

and infrastructure problems and opportunities on all 

public roads; 

‘‘(ii) focus resources on areas of greatest need; and 

‘‘(iii) are coordinated with other State highway 

safety programs; 

‘‘(D) advance the capabilities of the State for safety 

data collection, analysis, and integration in a manner 

that— 

‘‘(i) complements the State highway safety program 

under chapter 4 and the commercial vehicle safety plan 

under section 31102 of title 49; 

‘‘(ii) includes all public roads, including public 

non-State-owned roads and roads on tribal land; 

‘‘(iii) identifies hazardous locations, sections, and 

elements on all public roads that constitute a danger 

to motorists (including motorcyclists), bicyclists, pedestrians, persons with disabilities, and other highway 

users; 

‘‘(iv) includes a means of identifying the relative 

severity of hazardous locations described in clause (iii) 

in terms of crashes (including crash rate), serious injuries, fatalities, and traffic volume levels; and 

‘‘(v) improves the ability of the State to identify the 

number of fatalities and serious injuries on all public 

roads in the State with a breakdown by functional 

classification and ownership in the State; 

‘‘(E)(i) determine priorities for the correction of hazardous road locations, sections, and elements (including 

railway-highway crossing improvements), as identified 

through safety data analysis; 


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‘‘(ii) identify opportunities for preventing the development of such hazardous conditions; and 

‘‘(iii) establish and implement a schedule of highway 

safety improvement projects for hazard correction and hazard prevention; and 

‘‘(F)(i) establish an evaluation process to analyze and 

assess results achieved by highway safety improvement 

projects carried out in accordance with procedures and criteria established by this section; and 

‘‘(ii) use the information obtained under clause (i) in 

setting priorities for highway safety improvement projects. 

‘‘(d) UPDATES TO STRATEGIC HIGHWAY SAFETY PLANS.— 

‘‘(1) ESTABLISHMENT OF REQUIREMENTS.— 

‘‘(A) IN GENERAL.—Not later than 1 year after the date 

of enactment of the MAP–21, the Secretary shall establish 

requirements for regularly recurring State updates of strategic highway safety plans. 

‘‘(B) CONTENTS OF UPDATED STRATEGIC HIGHWAY SAFETY PLANS.—In establishing requirements under this subsection, the Secretary shall ensure that States take into consideration, with respect to updated strategic highway safety 

plans— 

‘‘(i) the findings of road safety audits; 

‘‘(ii) the locations of fatalities and serious injuries; 

‘‘(iii) the locations that do not have an empirical 

history of fatalities and serious injuries, but possess 

risk factors for potential crashes; 

‘‘(iv) rural roads, including all public roads, commensurate with fatality data; 

‘‘(v) motor vehicle crashes that include fatalities or 

serious injuries to pedestrians and bicyclists; 

‘‘(vi) the cost-effectiveness of improvements; 

‘‘(vii) improvements to rail-highway grade crossings; and 

‘‘(viii) safety on all public roads, including nonState-owned public roads and roads on tribal land. 

‘‘(2) APPROVAL OF UPDATED STRATEGIC HIGHWAY SAFETY

PLANS.— ‘‘(A) IN GENERAL.—Each State shall— 

‘‘(i) update the strategic highway safety plans of 

the State in accordance with the requirements established by the Secretary under this subsection; and 

‘‘(ii) submit the updated plans to the Secretary, 

along with a detailed description of the process used to 

update the plan. 

‘‘(B) REQUIREMENTS FOR APPROVAL.—The Secretary 

shall not approve the process for an updated strategic highway safety plan unless— 

‘‘(i) the updated strategic highway safety plan is 

consistent with the requirements of this subsection and 

subsection (a)(12); and 

‘‘(ii) the process used is consistent with the requirements of this subsection. 

‘‘(3) PENALTY FOR FAILURE TO HAVE AN APPROVED UPDATED

STRATEGIC HIGHWAY SAFETY PLAN.—If a State does not have an 


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updated strategic highway safety plan with a process approved 

by the Secretary by August 1 of the fiscal year beginning after 

the date of establishment of the requirements under paragraph 

(1), the State shall not be eligible to receive any additional limitation pursuant to the redistribution of the limitation on obligations for Federal-aid highway and highway safety construction 

programs that occurs after August 1 for each succeeding fiscal 

year until the fiscal year during which the plan is approved. 

‘‘(e) ELIGIBLE PROJECTS.— ‘‘(1) IN GENERAL.—Funds apportioned to the State under 

section 104(b)(3) may be obligated to carry out— 

‘‘(A) any highway safety improvement project on any 

public road or publicly owned bicycle or pedestrian pathway or trail; 

‘‘(B) as provided in subsection (g); or 

‘‘(C) any project to maintain minimum levels of 

retroreflectivity with respect to a public road, without regard to whether the project is included in an applicable 

State strategic highway safety plan. 

‘‘(2) USE OF OTHER FUNDING FOR SAFETY.— 

‘‘(A) EFFECT OF SECTION.—Nothing in this section prohibits the use of funds made available under other provisions of this title for highway safety improvement projects. 

‘‘(B) USE OF OTHER FUNDS.—States are encouraged to 

address the full scope of the safety needs and opportunities 

of the States by using funds made available under other 

provisions of this title (except a provision that specifically 

prohibits that use). 

‘‘(f) DATA IMPROVEMENT.— 

‘‘(1) DEFINITION OF DATA IMPROVEMENT ACTIVITIES.—In 

this subsection, the following definitions apply: 

‘‘(A) IN GENERAL.—The term ‘data improvement activities’ means a project or activity to further the capacity of a 

State to make more informed and effective safety infrastructure investment decisions. 

‘‘(B) INCLUSIONS.—The term ‘data improvement activities’ includes a project or activity— 

‘‘(i) to create, update, or enhance a highway 

basemap of all public roads in a State; 

‘‘(ii) to collect safety data, including data identified 

as part of the model inventory for roadway elements, 

for creation of or use on a highway basemap of all public roads in a State; 

‘‘(iii) to store and maintain safety data in an electronic manner; 

‘‘(iv) to develop analytical processes for safety data 

elements; 

‘‘(v) to acquire and implement roadway safety 

analysis tools; and 

‘‘(vi) to support the collection, maintenance, and 

sharing of safety data on all public roads and related 

systems associated with the analytical usage of that 

data. 

‘‘(2) MODEL INVENTORY OF ROADWAY ELEMENTS.—The Secretary shall— 


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‘‘(A) establish a subset of the model inventory of roadway elements that are useful for the inventory of roadway 

safety; and 

‘‘(B) ensure that States adopt and use the subset to improve data collection. 

‘‘(g) SPECIAL RULES.— 

‘‘(1) HIGH-RISK RURAL ROAD SAFETY.—If the fatality rate on 

rural roads in a State increases over the most recent 2-year period for which data are available, that State shall be required 

to obligate in the next fiscal year for projects on high risk rural 

roads an amount equal to at least 200 percent of the amount 

of funds the State received for fiscal year 2009 for high risk 

rural roads under subsection (f) of this section, as in effect on 

the day before the date of enactment of the MAP–21. 

‘‘(2) OLDER DRIVERS.—If traffic fatalities and serious injuries per capita for drivers and pedestrians over the age of 65 

in a State increases during the most recent 2-year period for 

which data are available, that State shall be required to include, in the subsequent Strategic Highway Safety Plan of the 

State, strategies to address the increases in those rates, taking 

into account the recommendations included in the publication 

of the Federal Highway Administration entitled ‘Highway Design Handbook for Older Drivers and Pedestrians’ (FHWA–RD– 

01–103), and dated May 2001, or as subsequently revised and 

updated. 

‘‘(h) REPORTS.— 

‘‘(1) IN GENERAL.—A State shall submit to the Secretary a 

report that— 

‘‘(A) describes progress being made to implement highway safety improvement projects under this section; 

‘‘(B) assesses the effectiveness of those improvements; 

and 

‘‘(C) describes the extent to which the improvements 

funded under this section have contributed to reducing— 

‘‘(i) the number and rate of fatalities on all public 

roads with, to the maximum extent practicable, a 

breakdown by functional classification and ownership 

in the State; 

‘‘(ii) the number and rate of serious injuries on all 

public roads with, to the maximum extent practicable, 

a breakdown by functional classification and ownership in the State; and 

‘‘(iii) the occurrences of fatalities and serious injuries at railway-highway crossings. 

‘‘(2) CONTENTS; SCHEDULE.—The Secretary shall establish 

the content and schedule for the submission of the report under 

paragraph (1). 

‘‘(3) TRANSPARENCY.—The Secretary shall make strategic 

highway safety plans submitted under subsection (d) and reports submitted under this subsection available to the public 

through— 

‘‘(A) the website of the Department; and 

‘‘(B) such other means as the Secretary determines to be 

appropriate. 


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‘‘(4) DISCOVERY AND ADMISSION INTO EVIDENCE OF CERTAIN

REPORTS, SURVEYS, AND INFORMATION.—Notwithstanding any 

other provision of law, reports, surveys, schedules, lists, or data 

compiled or collected for any purpose relating to this section, 

shall not be subject to discovery or admitted into evidence in a 

Federal or State court proceeding or considered for other purposes in any action for damages arising from any occurrence at 

a location identified or addressed in the reports, surveys, schedules, lists, or other data. 

‘‘(i) STATE PERFORMANCE TARGETS.—If the Secretary determines that a State has not met or made significant progress toward 

meeting the performance targets of the State established under section 150(d) by the date that is 2 years after the date of the establishment of the performance targets, the State shall— 

‘‘(1) use obligation authority equal to the apportionment of 

the State for the prior year under section 104(b)(3) only for 

highway safety improvement projects under this section until 

the Secretary determines that the State has met or made significant progress toward meeting the performance targets of the 

State; and 

‘‘(2) submit annually to the Secretary, until the Secretary 

determines that the State has met or made significant progress 

toward meeting the performance targets of the State, an implementation plan that— 

‘‘(A) identifies roadway features that constitute a hazard to road users; 

‘‘(B) identifies highway safety improvement projects on 

the basis of crash experience, crash potential, or other datasupported means; 

‘‘(C) describes how highway safety improvement program funds will be allocated, including projects, activities, 

and strategies to be implemented; 

‘‘(D) describes how the proposed projects, activities, and 

strategies funded under the State highway safety improvement program will allow the State to make progress toward 

achieving the safety performance targets of the State; and 

‘‘(E) describes the actions the State will undertake to 

meet the performance targets of the State. 

‘‘(j) FEDERAL SHARE OF HIGHWAY SAFETY IMPROVEMENT

PROJECTS.—Except as provided in sections 120 and 130, the Federal 

share of the cost of a highway safety improvement project carried 

out with funds apportioned to a State under section 104(b)(3) shall 

be 90 percent.’’. 

(b) STUDY OF HIGH-RISK RURAL ROADS BEST PRACTICES.— 

(1) STUDY.— 

(A) IN GENERAL.—The Secretary shall conduct a study 

of the best practices for implementing cost-effective roadway 

safety infrastructure improvements on high-risk rural 

roads. 

(B) METHODOLOGY.—In carrying out the study, the Secretary shall— 

(i) conduct a thorough literature review; 

(ii) survey current practices of State departments of 

transportation; and 


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(iii) survey current practices of local units of government, as appropriate. 

(C) CONSULTATION.—In carrying out the study, the 

Secretary shall consult with— 

(i) State departments of transportation; 

(ii) county engineers and public works professionals; 

(iii) appropriate local officials; and 

(iv) appropriate private sector experts in the field 

of roadway safety infrastructure. 

(2) REPORT.— (A) IN GENERAL.—Not later than 1 year after the date 

of enactment of this Act, the Secretary shall submit to the 

Committee on Environment and Public Works of the Senate 

and the Committee on Transportation and Infrastructure of 

the House of Representatives a report on the results of the 

study. 

(B) CONTENTS.—The report shall include— 

(i) a summary of cost-effective roadway safety infrastructure improvements; 

(ii) a summary of the latest research on the financial savings and reduction in fatalities and serious 

bodily injury crashes from the implementation of costeffective roadway safety infrastructure improvements; 

and 

(iii) recommendations for State and local governments on best practice methods to install cost-effective 

roadway safety infrastructure on high-risk rural roads. 

(3) MANUAL.— 

(A) DEVELOPMENT.—Based on the results of the study 

under paragraph (2), the Secretary, in consultation with 

the individuals and entities described in paragraph (1)(C), 

shall develop a best practices manual to support Federal, 

State, and local efforts to reduce fatalities and serious bodily injury crashes on high-risk rural roads through the use 

of cost-effective roadway safety infrastructure improvements. 

(B) AVAILABILITY.—The manual shall be made available to State and local governments not later than 180 days 

after the date of submission of the report under paragraph 

(2). 

(C) CONTENTS.—The manual shall include, at a minimum, a list of cost-effective roadway safety infrastructure 

improvements and best practices on the installation of costeffective roadway safety infrastructure improvements on 

high-risk rural roads. 

(D) USE OF MANUAL.—Use of the manual shall be voluntary and the manual shall not establish any binding 

standards or legal duties on State or local governments, or 

any other person. 

SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 

PROGRAM. 

(a) ELIGIBLE PROJECTS.—Section 149(b) of title 23, United 

States Code, is amended— 

(1) in the matter preceding paragraph (1)— 


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(A) by striking ‘‘in subsection (c)’’ and inserting ‘‘in 

subsection (d)’’; and 

(B) by striking ‘‘section 104(b)(2)’’ and inserting ‘‘section 104(b)(4)’’; 

(2) in paragraph (5)— 

(A) by inserting ‘‘add turning lanes,’’ after ‘‘improve 

intersections,’’; and 

(B) by striking ‘‘paragraph;’’ and inserting ‘‘paragraph, 

including programs or projects to improve incident and 

emergency response or improve mobility, such as through 

real-time traffic, transit, and multimodal traveler information;’’; 

(3) in paragraph (6) by striking ‘‘or’’ at the end; 

(4) in paragraph (7)(A)(ii) by striking ‘‘published in the list 

under subsection (f)(2)’’ and inserting ‘‘verified technologies (as 

defined in section 791 of the Energy Policy Act of 2005 (42 

U.S.C. 16131))’’; 

(5) by striking the matter following paragraph (7); 

(6) by redesignating paragraph (7) as paragraph (8); and 

(7) by inserting after paragraph (6) the following: 

‘‘(7) if the project or program shifts traffic demand to 

nonpeak hours or other transportation modes, increases vehicle 

occupancy rates, or otherwise reduces demand for roads 

through such means as telecommuting, ridesharing, carsharing, 

alternative work hours, and pricing; or’’. 

(b) SPECIAL RULES.—Section 149 of title 23, United States 

Code, is amended— 

(1) by redesignating subsections (c) through (h) as subsections (d) through (i) respectively; 

(2) by inserting after subsection (b) the following: 

‘‘(c) SPECIAL RULES.— ‘‘(1) PROJECTS FOR PM–10 NONATTAINMENT AREAS.—A State 

may obligate funds apportioned to the State under section 

104(b)(4) for a project or program for an area that is nonattainment for ozone or carbon monoxide, or both, and for PM–10 resulting from transportation activities, without regard to any 

limitation of the Department of Transportation relating to the 

type of ambient air quality standard such project or program 

addresses. 

‘‘(2) ELECTRIC VEHICLE AND NATURAL GAS VEHICLE INFRASTRUCTURE.—A State may obligate funds apportioned under 

section 104(b)(4) for a project or program to establish electric 

vehicle charging stations or natural gas vehicle refueling stations for the use of battery powered or natural gas fueled trucks 

or other motor vehicles at any location in the State except that 

such stations may not be established or supported where commercial establishments serving motor vehicle users are prohibited by section 111 of title 23, United States Code. 

‘‘(3) HOV FACILITIES.—No funds may be provided under 

this section for a project which will result in the construction 

of new capacity available to single occupant vehicles unless the 

project consists of a high occupancy vehicle facility available to 

single occupant vehicles only at other than peak travel times.’’; 

(3) by striking subsection (d) (as redesignated by paragraph 

(1)) and inserting the following: 


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‘‘(d) STATES FLEXIBILITY.— ‘‘(1) STATES WITHOUT A NONATTAINMENT AREA.—If a State 

does not have, and never has had, a nonattainment area designated under the Clean Air Act (42 U.S.C. 7401 et seq.), the 

State may use funds apportioned to the State under section 

104(b)(4) for any project in the State that— 

‘‘(A) would otherwise be eligible under subsection (b) as 

if the project were carried out in a nonattainment or maintenance area; or 

‘‘(B) is eligible under the surface transportation program under section 133. 

‘‘(2) STATES WITH A NONATTAINMENT AREA.— 

‘‘(A) IN GENERAL.—If a State has a nonattainment area 

or maintenance area and received funds in fiscal year 2009 

under section 104(b)(2)(D), as in effect on the day before the 

date of enactment of the MAP–21, above the amount of 

funds that the State would have received based on the nonattainment and maintenance area population of the State 

under subparagraphs (B) and (C) of section 104(b)(2), as in 

effect on the day before the date of enactment of the MAP– 

21, the State may use for any project that is eligible under 

the surface transportation program under section 133 an 

amount of funds apportioned to such State under section 

104(b)(4) that is equal to the product obtained by multiplying— 

‘‘(i) the amount apportioned to such State under 

section 104(b)(4) (excluding the amount of funds reserved under paragraph (l)); by 

‘‘(ii) the ratio calculated under subparagraph (B). 

‘‘(B) RATIO.—For purposes of this paragraph, the ratio 

shall be calculated as the proportion that— 

‘‘(i) the amount for fiscal year 2009 such State was 

permitted by section 149(c)(2), as in effect on the day 

before the date of enactment of the MAP–21, to obligate 

in any area of the State for projects eligible under section 133, as in effect on the day before the date of enactment of the MAP–21t; bears to 

‘‘(ii) the total apportionment to such State for fiscal 

year 2009 under section 104(b)(2), as in effect on the 

day before the date of enactment of the MAP–21. 

‘‘(3) CHANGES IN DESIGNATION.—If a new nonattainment 

area is designated or a previously designated nonattainment 

area is redesignated as an attainment area in a State under the 

Clean Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify the amount such State is permitted to obligate in any area 

of the State for projects eligible under section 133.’’; 

(4) in subsection (f)(3) (as redesignated by paragraph (1)) 

by striking ‘‘104(b)(2)’’ and inserting ‘‘104(b)(4)’’; 

(5) in subsection (g) (as redesignated by paragraph (1)) by 

striking paragraph (3) and inserting the following: 

‘‘(3) PRIORITY CONSIDERATION.—States and metropolitan 

planning organizations shall give priority in areas designated 

as nonattainment or maintenance for PM2.5 under the Clean 

Air Act (42 U.S.C. 7401 et seq.) in distributing funds received 

for congestion mitigation and air quality projects and programs 


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from apportionments under section 104(b)(4) to projects that are 

proven to reduce PM2.5, including diesel retrofits.’’; 

(6) by striking subsection (i) (as redesignated by paragraph 

(1)) and inserting the following: 

‘‘(i) EVALUATION AND ASSESSMENT OF PROJECTS.— ‘‘(1) DATABASE.— ‘‘(A) IN GENERAL.—Using appropriate assessments of 

projects funded under the congestion mitigation and air 

quality program and results from other research, the Secretary shall maintain and disseminate a cumulative database describing the impacts of the projects, including specific information about each project, such as the project 

name, location, sponsor, cost, and, to the extent already 

measured by the project sponsor, cost-effectiveness, based on 

reductions in congestion and emissions. 

‘‘(B) AVAILABILITY.—The database shall be published or 

otherwise made readily available by the Secretary in electronically accessible format and means, such as the Internet, for public review. 

‘‘(2) COST EFFECTIVENESS.— 

‘‘(A) IN GENERAL.—The Secretary, in consultation with 

the Administrator of the Environmental Protection Agency, 

shall evaluate projects on a periodic basis and develop a 

table or other similar medium that illustrates the cost-effectiveness of a range of project types eligible for funding 

under this section as to how the projects mitigate congestion and improve air quality. 

‘‘(B) CONTENTS.—The table described in subparagraph 

(A) shall show measures of cost-effectiveness, such as dollars per ton of emissions reduced, and assess those measures over a variety of timeframes to capture impacts on the 

planning timeframes outlined in section 134. 

‘‘(C) USE OF TABLE.—States and metropolitan planning 

organizations shall consider the information in the table 

when selecting projects or developing performance plans 

under subsection (l). 

‘‘(j) OPTIONAL PROGRAMMATIC ELIGIBILITY.— ‘‘(1) IN GENERAL.—At the discretion of a metropolitan planning organization, a technical assessment of a selected program 

of projects may be conducted through modeling or other means 

to demonstrate the emissions reduction projection required 

under this section. 

‘‘(2) APPLICABILITY.—If an assessment described in paragraph (1) successfully demonstrates an emissions reduction, all 

projects included in such assessment shall be eligible for obligation under this section without further demonstration of emissions reduction of individual projects included in such assessment. 

‘‘(k) PRIORITY FOR USE OF FUNDS IN PM2.5 AREAS.— ‘‘(1) IN GENERAL.—For any State that has a nonattainment 

or maintenance area for fine particulate matter, an amount 

equal to 25 percent of the funds apportioned to each State 

under section 104(b)(4) for a nonattainment or maintenance 

area that are based all or in part on the weighted population 

of such area in fine particulate matter nonattainment shall be 


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obligated to projects that reduce such fine particulate matter 

emissions in such area, including diesel retrofits. 

‘‘(2) CONSTRUCTION EQUIPMENT AND VEHICLES.—In order to 

meet the requirements of paragraph (1), a State or metropolitan 

planning organization may elect to obligate funds to install diesel emission control technology on nonroad diesel equipment or 

on-road diesel equipment that is operated on a highway construction project within a PM2.5 nonattainment or maintenance 

area. 

‘‘(l) PERFORMANCE PLAN.— ‘‘(1) IN GENERAL.—Each metropolitan planning organization serving a transportation management area (as defined in 

section 134) with a population over 1,000,000 people representing a nonattainment or maintenance area shall develop a 

performance plan that— 

‘‘(A) includes an area baseline level for traffic congestion and on-road mobile source emissions for which the 

area is in nonattainment or maintenance; 

‘‘(B) describes progress made in achieving the performance targets described in section 150(d); and 

‘‘(C) includes a description of projects identified for 

funding under this section and how such projects will contribute to achieving emission and traffic congestion reduction targets. 

‘‘(2) UPDATED PLANS.—Performance plans shall be updated 

biennially and include a separate report that assesses the 

progress of the program of projects under the previous plan in 

achieving the air quality and traffic congestion targets of the 

previous plan. 

‘‘(m) OPERATING ASSISTANCE.—A State may obligate funds apportioned under section 104(b)(2) in an area of such State that is 

otherwise eligible for obligations of such funds for operating costs 

under chapter 53 of title 49 or on a system that was previously eligible under this section.’’. 

(c) AIR QUALITY AND CONGESTION MITIGATION MEASURE OUT- COMES ASSESSMENT STUDY.— (1) IN GENERAL.—The Secretary, in consultation with the 

Administrator of the Environmental Protection Agency, shall 

examine the outcomes of actions funded under the congestion 

mitigation and air quality improvement program since the date 

of enactment of the SAFETEA–LU (Public Law 109–59). 

(2) GOALS.—The goals of the program shall include— 

(A) the assessment and documentation, through outcomes research conducted on a representative sample of 

cases, of— 

(i) the emission reductions achieved by federally 

supported surface transportation actions intended to 

reduce emissions or lessen traffic congestion; and 

(ii) the air quality and human health impacts of 

those actions, including potential unrecognized or indirect consequences, attributable to those actions; 

(B) an expanded base of empirical evidence on the air 

quality and human health impacts of actions described in 

paragraph (1); and 

(C) an increase in knowledge of— 


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(i) the factors determining the air quality and 

human health changes associated with transportation 

emission reduction actions; and 

(ii) other information to more accurately understand the validity of current estimation and modeling 

routines and ways to improve those routines. 

(3) ADMINISTRATIVE ELEMENTS.—To carry out this subsection, the Secretary shall— 

(A) make a grant for the coordination, selection, management, and reporting of component studies to an independent scientific research organization with the necessary 

experience in successfully conducting accountability and 

other studies on mobile source air pollutants and associated health effects; 

(B) ensure that case studies are identified and conducted by teams selected through a competitive solicitation 

overseen by an independent committee of unbiased experts; 

and 

(C) ensure that all findings and reports are peer-reviewed and published in a form that presents the findings 

together with reviewer comments. 

(4) REPORT.—The Secretary shall submit to the Committee 

on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of 

Representatives— 

(A) not later than 1 year after the date of enactment of 

the MAP–21, and for the following year, a report providing 

an initial scoping and plan, and status updates, respectively, for the program under this subsection; and 

(B) not later than 2 years after the date of enactment 

of the MAP–21, a final report that describes the findings of, 

and recommendations resulting from, the program under 

this subsection. 

(5) FUNDING.—Of the amounts made available to carry out 

section 104(a) for fiscal year 2013, the Secretary shall make 

available to carry out this subsection not more than $1,000,000. 

SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM. 

(a) IN GENERAL.—Section 165 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 165. Territorial and Puerto Rico highway program 

‘‘(a) DIVISION OF FUNDS.—Of funds made available in a fiscal 

year for the territorial and Puerto Rico highway program— 

‘‘(1) $150,000,000 shall be for the Puerto Rico highway program under subsection (b); and 

‘‘(2) $40,000,000 shall be for the territorial highway program under subsection (c). 

‘‘(b) PUERTO RICO HIGHWAY PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall allocate funds made 

available to carry out this subsection to the Commonwealth of 

Puerto Rico to carry out a highway program in the Commonwealth. 

‘‘(2) TREATMENT OF FUNDS.—Amounts made available to 

carry out this subsection for a fiscal year shall be administered 

as follows: 


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‘‘(A) APPORTIONMENT.— ‘‘(i) IN GENERAL.—For the purpose of imposing any 

penalty under this title or title 49, the amounts shall 

be treated as being apportioned to Puerto Rico under 

sections 104(b) and 144 (as in effect for fiscal year 

1997) for each program funded under those sections in 

an amount determined by multiplying— 

‘‘(I) the aggregate of the amounts for the fiscal 

year; by 

‘‘(II) the proportion that— 

‘‘(aa) the amount of funds apportioned to 

Puerto Rico for each such program for fiscal 

year 1997; bears to 

‘‘(bb) the total amount of funds apportioned to Puerto Rico for all such programs for 

fiscal year 1997. 

‘‘(ii) EXCEPTION.—Funds identified under clause (i) 

as having been apportioned for the national highway 

system, the surface transportation program, and the 

Interstate maintenance program shall be deemed to 

have been apportioned 50 percent for the national highway performance program and 50 percent for the surface transportation program for purposes of imposing 

such penalties. 

‘‘(B) PENALTY.—The amounts treated as being apportioned to Puerto Rico under each section referred to in subparagraph (A) shall be deemed to be required to be apportioned to Puerto Rico under that section for purposes of the 

imposition of any penalty under this title or title 49. 

‘‘(C) ELIGIBLE USES OF FUNDS.—Of amounts allocated 

to Puerto Rico for the Puerto Rico Highway Program for a 

fiscal year— 

‘‘(i) at least 50 percent shall be available only for 

purposes eligible under section 119; 

‘‘(ii) at least 25 percent shall be available only for 

purposes eligible under section 148; and 

‘‘(iii) any remaining funds may be obligated for activities eligible under chapter 1. 

‘‘(3) EFFECT ON APPORTIONMENTS.—Except as otherwise 

specifically provided, Puerto Rico shall not be eligible to receive 

funds apportioned to States under this title. 

‘‘(c) TERRITORIAL HIGHWAY PROGRAM.— 

‘‘(1) TERRITORY DEFINED.—In this subsection, the term ‘territory’ means any of the following territories of the United 

States: 

‘‘(A) American Samoa. 

‘‘(B) The Commonwealth of the Northern Mariana Islands. 

‘‘(C) Guam. 

‘‘(D) The United States Virgin Islands. 

‘‘(2) PROGRAM.— ‘‘(A) IN GENERAL.—Recognizing the mutual benefits 

that will accrue to the territories and the United States 

from the improvement of highways in the territories, the 

Secretary may carry out a program to assist each governVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00069 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ment of a territory in the construction and improvement of 

a system of arterial and collector highways, and necessary 

inter-island connectors, that is— 

‘‘(i) designated by the Governor or chief executive 

officer of each territory; and 

‘‘(ii) approved by the Secretary. 

‘‘(B) FEDERAL SHARE.—The Federal share of Federal financial assistance provided to territories under this subsection shall be in accordance with section 120(g). 

‘‘(3) TECHNICAL ASSISTANCE.— 

‘‘(A) IN GENERAL.—To continue a long-range highway 

development program, the Secretary may provide technical 

assistance to the governments of the territories to enable the 

territories, on a continuing basis— 

‘‘(i) to engage in highway planning; 

‘‘(ii) to conduct environmental evaluations; 

‘‘(iii) to administer right-of-way acquisition and relocation assistance programs; and 

‘‘(iv) to design, construct, operate, and maintain a 

system of arterial and collector highways, including 

necessary inter-island connectors. 

‘‘(B) FORM AND TERMS OF ASSISTANCE.—Technical assistance provided under subparagraph (A), and the terms 

for the sharing of information among territories receiving 

the technical assistance, shall be included in the agreement 

required by paragraph (5). 

‘‘(4) NONAPPLICABILITY OF CERTAIN PROVISIONS.— 

‘‘(A) IN GENERAL.—Except to the extent that provisions 

of this chapter are determined by the Secretary to be inconsistent with the needs of the territories and the intent of 

this subsection, this chapter (other than provisions of this 

chapter relating to the apportionment and allocation of 

funds) shall apply to funds made available under this subsection. 

‘‘(B) APPLICABLE PROVISIONS.—The agreement required 

by paragraph (5) for each territory shall identify the sections of this chapter that are applicable to that territory 

and the extent of the applicability of those sections. 

‘‘(5) AGREEMENT.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(D), none of the funds made available under this subsection 

shall be available for obligation or expenditure with respect 

to any territory until the chief executive officer of the territory has entered into an agreement (including an agreement entered into under section 215 as in effect on the day 

before the enactment of this section) with the Secretary providing that the government of the territory shall— 

‘‘(i) implement the program in accordance with applicable provisions of this chapter and paragraph (4); 

‘‘(ii) design and construct a system of arterial and 

collector highways, including necessary inter-island 

connectors, in accordance with standards that are— 

‘‘(I) appropriate for each territory; and 

‘‘(II) approved by the Secretary; 


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‘‘(iii) provide for the maintenance of facilities constructed or operated under this subsection in a condition to adequately serve the needs of present and future 

traffic; and 

‘‘(iv) implement standards for traffic operations 

and uniform traffic control devices that are approved 

by the Secretary. 

‘‘(B) TECHNICAL ASSISTANCE.—The agreement required 

by subparagraph (A) shall— 

‘‘(i) specify the kind of technical assistance to be 

provided under the program; 

‘‘(ii) include appropriate provisions regarding information sharing among the territories; and 

‘‘(iii) delineate the oversight role and responsibilities of the territories and the Secretary. 

‘‘(C) REVIEW AND REVISION OF AGREEMENT.—The agreement entered into under subparagraph (A) shall be reevaluated and, as necessary, revised, at least every 2 years. 

‘‘(D) EXISTING AGREEMENTS.—With respect to an agreement under this subsection or an agreement entered into 

under section 215 of this title as in effect on the day before 

the date of enactment of this subsection— 

‘‘(i) the agreement shall continue in force until replaced by an agreement entered into in accordance 

with subparagraph (A); and 

‘‘(ii) amounts made available under this subsection 

under the existing agreement shall be available for obligation or expenditure so long as the agreement, or the 

existing agreement entered into under subparagraph 

(A), is in effect. 

‘‘(6) ELIGIBLE USES OF FUNDS.— ‘‘(A) IN GENERAL.—Funds made available under this 

subsection may be used only for the following projects and 

activities carried out in a territory: 

‘‘(i) Eligible surface transportation program 

projects described in section 133(b). 

‘‘(ii) Cost-effective, preventive maintenance consistent with section 116(e). 

‘‘(iii) Ferry boats, terminal facilities, and approaches, in accordance with subsections (b) and (c) of 

section 129. 

‘‘(iv) Engineering and economic surveys and investigations for the planning, and the financing, of future 

highway programs. 

‘‘(v) Studies of the economy, safety, and convenience of highway use. 

‘‘(vi) The regulation and equitable taxation of highway use. 

‘‘(vii) Such research and development as are necessary in connection with the planning, design, and 

maintenance of the highway system. 

‘‘(B) PROHIBITION ON USE OF FUNDS FOR ROUTINE

MAINTENANCE.—None of the funds made available under 

this subsection shall be obligated or expended for routine 

maintenance. 


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‘‘(7) LOCATION OF PROJECTS.—Territorial highway program 

projects (other than those described in paragraphs (2), (4), (7), 

(8), (14), and (19) of section 133(b)) may not be undertaken on 

roads functionally classified as local.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) TECHNICAL AND CONFORMING AMENDMENT.—The analysis for chapter 1 of title 23, United States Code, is amended 

by striking the item relating to section 165 and inserting the 

following: 

‘‘165. Territorial and Puerto Rico highway program.’’. 

(2) TERRITORIAL HIGHWAY PROGRAM.— 

(A) REPEAL.—Section 215 of title 23, United States 

Code, is repealed. 

(B) TECHNICAL AND CONFORMING AMENDMENT.—The 

analysis for chapter 2 of title 23, United States Code, is 

amended by striking the item relating to section 215. 

(C) DUNCAN HUNTER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2009.—Section 3512(e) of the 

Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (48 U.S.C. 1421r(e)) is amended by striking 

‘‘section 215’’ and inserting ‘‘section 165’’. 

SEC. 1115. NATIONAL FREIGHT POLICY. 

(a) IN GENERAL.—Chapter 1 of title 23, United States Code, is 

amended by adding at the end the following: 

‘‘§ 167. National freight policy 

‘‘(a) IN GENERAL.—It is the policy of the United States to improve the condition and performance of the national freight network 

to ensure that the national freight network provides the foundation 

for the United States to compete in the global economy and achieve 

each goal described in subsection (b). 

‘‘(b) GOALS.—The goals of the national freight policy are— 

‘‘(1) to invest in infrastructure improvements and to implement operational improvements that— 

‘‘(A) strengthen the contribution of the national freight 

network to the economic competitiveness of the United 

States; 

‘‘(B) reduce congestion; and 

‘‘(C) increase productivity, particularly for domestic industries and businesses that create high-value jobs; 

‘‘(2) to improve the safety, security, and resilience of freight 

transportation; 

‘‘(3) to improve the state of good repair of the national 

freight network; 

‘‘(4) to use advanced technology to improve the safety and 

efficiency of the national freight network; 

‘‘(5) to incorporate concepts of performance, innovation, 

competition, and accountability into the operation and maintenance of the national freight network; and 

‘‘(6) to improve the economic efficiency of the national 

freight network. 

‘‘(7) to reduce the environmental impacts of freight movement on the national freight network; 

‘‘(c) ESTABLISHMENT OF A NATIONAL FREIGHT NETWORK.— 


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‘‘(1) IN GENERAL.—The Secretary shall establish a national 

freight network in accordance with this section to assist States 

in strategically directing resources toward improved system performance for efficient movement of freight on highways, including national highway system, freight intermodal connectors and 

aerotropolis transportation systems. 

‘‘(2) NETWORK COMPONENTS.—The national freight network 

shall consist of— 

‘‘(A) the primary freight network, as designated by the 

Secretary under subsection (d) (referred to in this section as 

the ‘primary freight network’) as most critical to the movement of freight; 

‘‘(B) the portions of the Interstate System not designated as part of the primary freight network; and 

‘‘(C) critical rural freight corridors established under 

subsection (e). 

‘‘(d) DESIGNATION OF PRIMARY FREIGHT NETWORK.— 

‘‘(1) INITIAL DESIGNATION OF PRIMARY FREIGHT NETWORK.— ‘‘(A) DESIGNATION.—Not later than 1 year after the 

date of enactment of this section, the Secretary shall designate a primary freight network— 

‘‘(i) based on an inventory of national freight volume conducted by the Administrator of the Federal 

Highway Administration, in consultation with stakeholders, including system users, transport providers, 

and States; and 

‘‘(ii) that shall be comprised of not more than 

27,000 centerline miles of existing roadways that are 

most critical to the movement of freight. 

‘‘(B) FACTORS FOR DESIGNATION.—In designating the 

primary freight network, the Secretary shall consider— 

‘‘(i) the origins and destinations of freight movement in the United States; 

‘‘(ii) the total freight tonnage and value of freight 

moved by highways; 

‘‘(iii) the percentage of annual average daily truck 

traffic in the annual average daily traffic on principal 

arterials; 

‘‘(iv) the annual average daily truck traffic on principal arterials; 

‘‘(v) land and maritime ports of entry; 

‘‘(vi) access to energy exploration, development, installation, or production areas; 

‘‘(vii) population centers; and 

‘‘(viii) network connectivity. 

‘‘(2) ADDITIONAL MILES ON PRIMARY FREIGHT NETWORK.—In 

addition to the miles initially designated under paragraph (1), 

the Secretary may increase the number of miles designated as 

part of the primary freight network by not more than 3,000 additional centerline miles of roadways (which may include existing or planned roads) critical to future efficient movement of 

goods on the primary freight network. 

‘‘(3) REDESIGNATION OF PRIMARY FREIGHT NETWORK.—Effective beginning 10 years after the designation of the primary 

freight network and every 10 years thereafter, using the desVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00073 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ignation factors described in paragraph (1), the Secretary shall 

redesignate the primary freight network (including additional 

mileage described in paragraph (2)). 

‘‘(e) CRITICAL RURAL FREIGHT CORRIDORS.—A State may designate a road within the borders of the State as a critical rural 

freight corridor if the road— 

‘‘(1) is a rural principal arterial roadway and has a minimum of 25 percent of the annual average daily traffic of the 

road measured in passenger vehicle equivalent units from 

trucks (FHWA vehicle class 8 to 13); 

‘‘(2) provides access to energy exploration, development, installation, or production areas; 

‘‘(3) connects the primary freight network, a roadway described in paragraph (1) or (2), or Interstate System to facilities 

that handle more than— 

‘‘(A) 50,000 20-foot equivalent units per year; or 

‘‘(B) 500,000 tons per year of bulk commodities. 

‘‘(f) NATIONAL FREIGHT STRATEGIC PLAN.— 

‘‘(1) INITIAL DEVELOPMENT OF NATIONAL FREIGHT STRATEGIC PLAN.—Not later than 3 years after the date of enactment 

of this section, the Secretary shall, in consultation with State 

departments of transportation and other appropriate public and 

private transportation stakeholders, develop and post on the Department of Transportation public website a national freight 

strategic plan that shall include— 

‘‘(A) an assessment of the condition and performance of 

the national freight network; 

‘‘(B) an identification of highway bottlenecks on the national freight network that create significant freight congestion problems, based on a quantitative methodology developed by the Secretary, which shall, at a minimum, include— 

‘‘(i) information from the Freight Analysis Network 

of the Federal Highway Administration; and 

‘‘(ii) to the maximum extent practicable, an estimate of the cost of addressing each bottleneck and any 

operational improvements that could be implemented; 

‘‘(C) forecasts of freight volumes for the 20-year period 

beginning in the year during which the plan is issued; 

‘‘(D) an identification of major trade gateways and national freight corridors that connect major population centers, trade gateways, and other major freight generators for 

current and forecasted traffic and freight volumes, the identification of which shall be revised, as appropriate, in subsequent plans; 

‘‘(E) an assessment of statutory, regulatory, technological, institutional, financial, and other barriers to improved freight transportation performance (including opportunities for overcoming the barriers); 

‘‘(F) an identification of routes providing access to energy exploration, development, installation, or production 

areas; 

‘‘(G) best practices for improving the performance of the 

national freight network; 


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‘‘(H) best practices to mitigate the impacts of freight 

movement on communities; 

‘‘(I) a process for addressing multistate projects and encouraging jurisdictions to collaborate; and 

‘‘(J) strategies to improve freight intermodal 

connectivity. 

‘‘(2) UPDATES TO NATIONAL FREIGHT STRATEGIC PLAN.—Not 

later than 5 years after the date of completion of the first national freight strategic plan under paragraph (1), and every 5 

years thereafter, the Secretary shall update and repost on the 

Department of Transportation public website a revised national 

freight strategic plan. 

‘‘(g) FREIGHT TRANSPORTATION CONDITIONS AND PERFORMANCE

REPORTS.—Not later than 2 years after the date of enactment of this 

section, and biennially thereafter, the Secretary shall prepare a report that contains a description of the conditions and performance 

of the national freight network in the United States. 

‘‘(h) TRANSPORTATION INVESTMENT DATA AND PLANNING

TOOLS.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date of 

enactment of this section, the Secretary shall— 

‘‘(A) begin development of new tools and improvement 

of existing tools or improve existing tools to support an outcome-oriented, performance-based approach to evaluate proposed freight-related and other transportation projects, including— 

‘‘(i) methodologies for systematic analysis of benefits and costs; 

‘‘(ii) tools for ensuring that the evaluation of 

freight-related and other transportation projects could 

consider safety, economic competitiveness, environmental sustainability, and system condition in the 

project selection process; and 

‘‘(iii) other elements to assist in effective transportation planning; 

‘‘(B) identify transportation-related model data elements to support a broad range of evaluation methods and 

techniques to assist in making transportation investment 

decisions; and 

‘‘(C) at a minimum, in consultation with other relevant 

Federal agencies, consider any improvements to existing 

freight flow data collection efforts that could reduce identified freight data gaps and deficiencies and help improve 

forecasts of freight transportation demand. 

‘‘(2) CONSULTATION.—The Secretary shall consult with Federal, State, and other stakeholders to develop, improve, and implement the tools and collect the data in paragraph (1). 

‘‘(i) DEFINITION OF AEROTROPOLIS TRANSPORTATION SYSTEM.— 

In this section, the term ‘aerotropolis transportation system’ means 

a planned and coordinated multimodal freight and passenger transportation network that, as determined by the Secretary, provides efficient, cost-effective, sustainable, and intermodal connectivity to a 

defined region of economic significance centered around a major airport.’’. 


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(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by adding at the end the 

following: 

‘‘167. National freight program.’’. 

SEC. 1116. PRIORITIZATION OF PROJECTS TO IMPROVE FREIGHT 

MOVEMENT. 

(a) IN GENERAL.—Notwithstanding section 120 of title 23, 

United States Code, the Secretary may increase the Federal share 

payable for any project to 95 percent for projects on the Interstate 

System and 90 percent for any other project if the Secretary certifies 

that the project meets the requirements of this section. 

(b) INCREASED FUNDING.—To be eligible for the increased Federal funding share under this section, a project shall— 

(1) demonstrate the improvement made by the project to the 

efficient movement of freight, including making progress towards meeting performance targets for freight movement established under section 150(d) of title 23, United States Code; and 

(2) be identified in a State freight plan developed pursuant 

to section 1118. 

(c) ELIGIBLE PROJECTS.—Eligible projects to improve the movement of freight under this section may include, but are not limited 

to— 

(1) construction, reconstruction, rehabilitation, and operational improvements directly relating to improving freight 

movement; 

(2) intelligent transportation systems and other technology 

to improve the flow of freight; 

(3) efforts to reduce the environmental impacts of freight 

movement on the primary freight network; 

(4) railway-highway grade separation; 

(5) geometric improvements to interchanges and ramps. 

(6) truck-only lanes; 

(7) climbing and runaway truck lanes; 

(8) truck parking facilities eligible for funding under section 1401; 

(9) real-time traffic, truck parking, roadway condition, and 

multimodal transportation information systems; 

(10) improvements to freight intermodal connectors; and 

(11) improvements to truck bottlenecks. 

SEC. 1117. STATE FREIGHT ADVISORY COMMITTEES. 

(a) IN GENERAL.—The Secretary shall encourage each State to 

establish a freight advisory committee consisting of a representative 

cross-section of public and private sector freight stakeholders, including representatives of ports, shippers, carriers, freight-related 

associations, the freight industry workforce, the transportation department of the State, and local governments. 

(b) ROLE OF COMMITTEE.—A freight advisory committee of a 

State described in subsection (a) shall— 

(1) advise the State on freight-related priorities, issues, 

projects, and funding needs; 

(2) serve as a forum for discussion for State transportation 

decisions affecting freight mobility; 

(3) communicate and coordinate regional priorities with 

other organizations; 


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(4) promote the sharing of information between the private 

and public sectors on freight issues; and 

(5) participate in the development of the freight plan of the 

State described in section 1118. 

SEC. 1118. STATE FREIGHT PLANS. 

(a) IN GENERAL.—The Secretary shall encourage each State to 

develop a freight plan that provides a comprehensive plan for the 

immediate and long-range planning activities and investments of 

the State with respect to freight. 

(b) PLAN CONTENTS.—A freight plan described in subsection (a) 

shall include, at a minimum— 

(1) an identification of significant freight system trends, 

needs, and issues with respect to the State; 

(2) a description of the freight policies, strategies, and performance measures that will guide the freight-related transportation investment decisions of the State; 

(3) a description of how the plan will improve the ability 

of the State to meet the national freight goals established under 

section 167 of title 23, United States Code; 

(4) evidence of consideration of innovative technologies and 

operational strategies, including intelligent transportation systems, that improve the safety and efficiency of freight movement; 

(5) in the case of routes on which travel by heavy vehicles 

(including mining, agricultural, energy cargo or equipment, 

and timber vehicles) is projected to substantially deteriorate the 

condition of roadways, a description of improvements that may 

be required to reduce or impede the deterioration; and 

(6) an inventory of facilities with freight mobility issues, 

such as truck bottlenecks, within the State, and a description 

of the strategies the State is employing to address those freight 

mobility issues. 

(c) RELATIONSHIP TO LONG-RANGE PLAN.—A freight plan described in subsection (a) may be developed separate from or incorporated into the statewide strategic long-range transportation plan 

required by section 135 of title 23, United States Code. 

SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS. 

(a) IN GENERAL.—Chapter 2 of title 23, United States Code, is 

amended by striking sections 201 through 204 and inserting the following: 

‘‘§ 201. Federal lands and tribal transportation programs 

‘‘(a) PURPOSE.—Recognizing the need for all public Federal and 

tribal transportation facilities to be treated under uniform policies 

similar to the policies that apply to Federal-aid highways and other 

public transportation facilities, the Secretary of Transportation, in 

collaboration with the Secretaries of the appropriate Federal land 

management agencies, shall coordinate a uniform policy for all public Federal and tribal transportation facilities that shall apply to 

Federal lands transportation facilities, tribal transportation facilities, and Federal lands access transportation facilities. 

‘‘(b) AVAILABILITY OF FUNDS.— 


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‘‘(1) AVAILABILITY.—Funds authorized for the tribal transportation program, the Federal lands transportation program, 

and the Federal lands access program shall be available for 

contract upon apportionment, or on October 1 of the fiscal year 

for which the funds were authorized if no apportionment is required. 

‘‘(2) AMOUNT REMAINING.—Any amount remaining unexpended for a period of 3 years after the close of the fiscal year 

for which the funds were authorized shall lapse. 

‘‘(3) OBLIGATIONS.—The Secretary of the department responsible for the administration of funds under this subsection 

may incur obligations, approve projects, and enter into contracts under such authorizations, which shall be considered to 

be contractual obligations of the United States for the payment 

of the cost thereof, the funds of which shall be considered to 

have been expended when obligated. 

‘‘(4) EXPENDITURE.— 

‘‘(A) IN GENERAL.—Any funds authorized for any fiscal 

year after the date of enactment of this section under the 

Federal lands transportation program, the Federal lands 

access program, and the tribal transportation program 

shall be considered to have been expended if a sum equal 

to the total of the sums authorized for the fiscal year and 

previous fiscal years have been obligated. 

‘‘(B) CREDITED FUNDS.—Any funds described in subparagraph (A) that are released by payment of final voucher or modification of project authorizations shall be— 

‘‘(i) credited to the balance of unobligated authorizations; and 

‘‘(ii) immediately available for expenditure. 

‘‘(5) APPLICABILITY.—This section shall not apply to funds 

authorized before the date of enactment of this paragraph. 

‘‘(6) CONTRACTUAL OBLIGATION.— 

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law (including regulations), the authorization by the 

Secretary, or the Secretary of the appropriate Federal land 

management agency if the agency is the contracting office, 

of engineering and related work for the development, design, and acquisition associated with a construction project, 

whether performed by contract or agreement authorized by 

law, or the approval by the Secretary of plans, specifications, and estimates for construction of a project, shall be 

considered to constitute a contractual obligation of the Federal Government to pay the total eligible cost of— 

‘‘(i) any project funded under this title; and 

‘‘(ii) any project funded pursuant to agreements authorized by this title or any other title. 

‘‘(B) EFFECT.—Nothing in this paragraph— 

‘‘(i) affects the application of the Federal share associated with the project being undertaken under this 

section; or 

‘‘(ii) modifies the point of obligation associated 

with Federal salaries and expenses. 

‘‘(7) FEDERAL SHARE.— 


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‘‘(A) TRIBAL AND FEDERAL LANDS TRANSPORTATION PROGRAM.—The Federal share of the cost of a project carried 

out under the Federal lands transportation program or the 

tribal transportation program shall be 100 percent. 

‘‘(B) FEDERAL LANDS ACCESS PROGRAM.—The Federal 

share of the cost of a project carried out under the Federal 

lands access program shall be determined in accordance 

with section 120. 

‘‘(c) TRANSPORTATION PLANNING.— 

‘‘(1) TRANSPORTATION PLANNING PROCEDURES.—In consultation with the Secretary of each appropriate Federal land 

management agency, the Secretary shall implement transportation planning procedures for Federal lands and tribal transportation facilities that are consistent with the planning processes required under sections 134 and 135. 

‘‘(2) APPROVAL OF TRANSPORTATION IMPROVEMENT PROGRAM.—The transportation improvement program developed as 

a part of the transportation planning process under this section 

shall be approved by the Secretary. 

‘‘(3) INCLUSION IN OTHER PLANS.—Each regionally significant tribal transportation program, Federal lands transportation program, and Federal lands access program project shall 

be— 

‘‘(A) developed in cooperation with State and metropolitan planning organizations; and 

‘‘(B) included in appropriate tribal transportation program plans, Federal lands transportation program plans, 

Federal lands access program plans, State and metropolitan plans, and transportation improvement programs. 

‘‘(4) INCLUSION IN STATE PROGRAMS.—The approved tribal 

transportation program, Federal lands transportation program, 

and Federal lands access program transportation improvement 

programs shall be included in appropriate State and metropolitan planning organization plans and programs without further 

action on the transportation improvement program. 

‘‘(5) ASSET MANAGEMENT.—The Secretary and the Secretary 

of each appropriate Federal land management agency shall, to 

the extent appropriate, implement safety, bridge, pavement, and 

congestion management systems for facilities funded under the 

tribal transportation program and the Federal lands transportation program in support of asset management. 

‘‘(6) DATA COLLECTION.— 

‘‘(A) DATA COLLECTION.—The Secretaries of the appropriate Federal land management agencies shall collect and 

report data necessary to implement the Federal lands 

transportation program, the Federal lands access program, 

and the tribal transportation program in accordance with 

the Indian Self-Determination and Education Assistance 

Act (25 U.S.C. 450 et seq.), including— 

‘‘(i) inventory and condition information on Federal lands transportation facilities and tribal transportation facilities; and 

‘‘(ii) bridge inspection and inventory information 

on any Federal bridge open to the public. 


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‘‘(B) STANDARDS.—The Secretary, in coordination with 

the Secretaries of the appropriate Federal land management agencies, shall define the collection and reporting 

data standards. 

‘‘(7) ADMINISTRATIVE EXPENSES.—To implement the activities described in this subsection, including direct support of 

transportation planning activities among Federal land management agencies, the Secretary may use not more than 5 percent 

for each fiscal year of the funds authorized for programs under 

sections 203 and 204. 

‘‘(d) REIMBURSABLE AGREEMENTS.—In carrying out work under 

reimbursable agreements with any State, local, or tribal government 

under this title, the Secretary— 

‘‘(1) may, without regard to any other provision of law (including regulations), record obligations against accounts receivable from the entity; and 

‘‘(2) shall credit amounts received from the entity to the appropriate account, which shall occur not later than 90 days 

after the date of the original request by the Secretary for payment. 

‘‘(e) TRANSFERS.— ‘‘(1) IN GENERAL.—To enable the efficient use of funds made 

available for the Federal lands transportation program and the 

Federal lands access program, the funds may be transferred by 

the Secretary within and between each program with the concurrence of, as appropriate— 

‘‘(A) the Secretary; 

‘‘(B) the affected Secretaries of the respective Federal 

land management agencies; 

‘‘(C) State departments of transportation; and 

‘‘(D) local government agencies. 

‘‘(2) CREDIT.—The funds described in paragraph (1) shall 

be credited back to the loaning entity with funds that are currently available for obligation at the time of the credit. 

‘‘§ 202. Tribal transportation program 

‘‘(a) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—Funds made available under the tribal 

transportation program shall be used by the Secretary of Transportation and the Secretary of the Interior to pay the costs of— 

‘‘(A)(i) transportation planning, research, maintenance, 

engineering, rehabilitation, restoration, construction, and 

reconstruction of tribal transportation facilities; 

‘‘(ii) adjacent vehicular parking areas; 

‘‘(iii) interpretive signage; 

‘‘(iv) acquisition of necessary scenic easements and scenic or historic sites; 

‘‘(v) provisions for pedestrians and bicycles; 

‘‘(vi) environmental mitigation in or adjacent to tribal 

land— 

‘‘(I) to improve public safety and reduce vehiclecaused wildlife mortality while maintaining habitat 

connectivity; and 

‘‘(II) to mitigate the damage to wildlife, aquatic organism passage, habitat, and ecosystem connectivity, 


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including the costs of constructing, maintaining, replacing, or removing culverts and bridges, as appropriate; 

‘‘(vii) construction and reconstruction of roadside rest 

areas, including sanitary and water facilities; and 

‘‘(viii) other appropriate public road facilities as determined by the Secretary; 

‘‘(B) operation and maintenance of transit programs 

and facilities that are located on, or provide access to, tribal land, or are administered by a tribal government; and 

‘‘(C) any transportation project eligible for assistance 

under this title that is located within, or that provides access to, tribal land, or is associated with a tribal government. 

‘‘(2) CONTRACT.—In connection with an activity described 

in paragraph (1), the Secretary and the Secretary of the Interior 

may enter into a contract or other appropriate agreement with 

respect to the activity with— 

‘‘(A) a State (including a political subdivision of a 

State); or 

‘‘(B) an Indian tribe. 

‘‘(3) INDIAN LABOR.—Indian labor may be employed, in accordance with such rules and regulations as may be promulgated by the Secretary of the Interior, to carry out any construction or other activity described in paragraph (1). 

‘‘(4) FEDERAL EMPLOYMENT.—No maximum limitation on 

Federal employment shall be applicable to the construction or 

improvement of tribal transportation facilities. 

‘‘(5) FUNDS FOR CONSTRUCTION AND IMPROVEMENT.—All 

funds made available for the construction and improvement of 

tribal transportation facilities shall be administered in conformity with regulations and agreements jointly approved by 

the Secretary and the Secretary of the Interior. 

‘‘(6) ADMINISTRATIVE EXPENSES.—Of the funds authorized 

to be appropriated for the tribal transportation program, not 

more than 6 percent may be used by the Secretary or the Secretary of the Interior for program management and oversight 

and project-related administrative expenses. 

‘‘(7) TRIBAL TECHNICAL ASSISTANCE CENTERS.—The Secretary of the Interior may reserve amounts from administrative 

funds of the Bureau of Indian Affairs that are associated with 

the tribal transportation program to fund tribal technical assistance centers under section 504(b). 

‘‘(8) MAINTENANCE.— 

‘‘(A) USE OF FUNDS.—Notwithstanding any other provision of this title, of the amount of funds allocated to an Indian tribe from the tribal transportation program, for the 

purpose of maintenance (excluding road sealing, which 

shall not be subject to any limitation), the Secretary shall 

not use an amount more than the greater of— 

‘‘(i) an amount equal to 25 percent; or 

‘‘(ii) $500,000. 

‘‘(B) RESPONSIBILITY OF BUREAU OF INDIAN AFFAIRS

AND SECRETARY OF THE INTERIOR.— 


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‘‘(i) BUREAU OF INDIAN AFFAIRS.—The Bureau of 

Indian Affairs shall retain primary responsibility, including annual funding request responsibility, for Bureau of Indian Affairs road maintenance programs on 

Indian reservations. 

‘‘(ii) SECRETARY OF THE INTERIOR.—The Secretary 

of the Interior shall ensure that funding made available under this subsection for maintenance of tribal 

transportation facilities for each fiscal year is supplementary to, and not in lieu of, any obligation of funds 

by the Bureau of Indian Affairs for road maintenance 

programs on Indian reservations. 

‘‘(C) TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.— 

‘‘(i) IN GENERAL.—An Indian tribe and a State 

may enter into a road maintenance agreement under 

which an Indian tribe shall assume the responsibility 

of the State for— 

‘‘(I) tribal transportation facilities; and 

‘‘(II) roads providing access to tribal transportation facilities. 

‘‘(ii) REQUIREMENTS.—Agreements entered into 

under clause (i) shall— 

‘‘(I) be negotiated between the State and the 

Indian tribe; and 

‘‘(II) not require the approval of the Secretary. 

‘‘(9) COOPERATION.— ‘‘(A) IN GENERAL.—The cooperation of States, counties, 

or other local subdivisions may be accepted in construction 

and improvement. 

‘‘(B) FUNDS RECEIVED.—Any funds received from a 

State, county, or local subdivision shall be credited to appropriations available for the tribal transportation program. 

‘‘(10) COMPETITIVE BIDDING.— 

‘‘(A) CONSTRUCTION.— ‘‘(i) IN GENERAL.—Subject to clause (ii) and subparagraph (B), construction of each project shall be 

performed by contract awarded by competitive bidding. 

‘‘(ii) EXCEPTION.—Clause (i) shall not apply if the 

Secretary or the Secretary of the Interior affirmatively 

finds that, under the circumstances relating to the 

project, a different method is in the public interest. 

‘‘(B) APPLICABILITY.—Notwithstanding subparagraph 

(A), section 23 of the Act of June 25, 1910 (25 U.S.C. 47) 

and section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)) shall apply to all 

funds administered by the Secretary of the Interior that are 

appropriated for the construction and improvement of tribal transportation facilities. 

‘‘(b) FUNDS DISTRIBUTION.— ‘‘(1) NATIONAL TRIBAL TRANSPORTATION FACILITY INVEN- TORY.— ‘‘(A) IN GENERAL.—The Secretary of the Interior, in cooperation with the Secretary, shall maintain a comprehensive national inventory of tribal transportation facilities 


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that are eligible for assistance under the tribal transportation program. 

‘‘(B) TRANSPORTATION FACILITIES INCLUDED IN THE IN- VENTORY.—For purposes of identifying the tribal transportation system and determining the relative transportation 

needs among Indian tribes, the Secretary shall include, at 

a minimum, transportation facilities that are eligible for 

assistance under the tribal transportation program that an 

Indian tribe has requested, including facilities that— 

‘‘(i) were included in the Bureau of Indian Affairs 

system inventory prior to October 1, 2004; 

‘‘(ii) are owned by an Indian tribal government; 

‘‘(iii) are owned by the Bureau of Indian Affairs; 

‘‘(iv) were constructed or reconstructed with funds 

from the Highway Trust Fund under the Indian reservation roads program since 1983; 

‘‘(v) are public roads or bridges within the exterior 

boundary of Indian reservations, Alaska Native villages, and other recognized Indian communities (including communities in former Indian reservations in 

the State of Oklahoma) in which the majority of residents are American Indians or Alaska Natives; 

‘‘(vi) are public roads within or providing access to 

an Indian reservation or Indian trust land or restricted 

Indian land that is not subject to fee title alienation 

without the approval of the Federal Government, or Indian or Alaska Native villages, groups, or communities 

in which Indians and Alaska Natives reside, whom the 

Secretary of the Interior has determined are eligible for 

services generally available to Indians under Federal 

laws specifically applicable to Indians; or 

‘‘(vii) are primary access routes proposed by tribal 

governments, including roads between villages, roads 

to landfills, roads to drinking water sources, roads to 

natural resources identified for economic development, 

and roads that provide access to intermodal terminals, 

such as airports, harbors, or boat landings. 

‘‘(C) LIMITATION ON PRIMARY ACCESS ROUTES.—For 

purposes of this paragraph, a proposed primary access 

route is the shortest practicable route connecting 2 points of 

the proposed route. 

‘‘(D) ADDITIONAL FACILITIES.—Nothing in this paragraph precludes the Secretary from including additional 

transportation facilities that are eligible for funding under 

the tribal transportation program in the inventory used for 

the national funding allocation if such additional facilities 

are included in the inventory in a uniform and consistent 

manner nationally. 

‘‘(E) BRIDGES.—All bridges in the inventory shall be recorded in the national bridge inventory administered by the 

Secretary under section 144. 

‘‘(2) REGULATIONS.—Notwithstanding sections 563(a) and 

565(a) of title 5, the Secretary of the Interior shall maintain any 

regulations governing the tribal transportation program. 

‘‘(3) BASIS FOR FUNDING FORMULA.— 


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‘‘(A) BASIS.— 

‘‘(i) IN GENERAL.—After making the set asides authorized under subparagraph (C) and subsections (c), 

(d), and (e) on October 1 of each fiscal year, the Secretary shall distribute the remainder authorized to be 

appropriated for the tribal transportation program 

under this section among Indian tribes as follows: 

‘‘(I) For fiscal year 2013— 

‘‘(aa) for each Indian tribe, 80 percent of 

the total relative need distribution factor and 

population adjustment factor for the fiscal 

year 2011 funding amount made available to 

that Indian tribe; and 

‘‘(bb) the remainder using tribal shares as 

described in subparagraphs (B) and (C). 

‘‘(II) For fiscal year 2014— 

‘‘(aa) for each Indian tribe, 60 percent of 

the total relative need distribution factor and 

population adjustment factor for the fiscal 

year 2011 funding amount made available to 

that Indian tribe; and 

‘‘(bb) the remainder using tribal shares as 

described in subparagraphs (B) and (C). 

‘‘(III) For fiscal year 2015— 

‘‘(aa) for each Indian tribe, 40 percent of 

the total relative need distribution factor and 

population adjustment factor for the fiscal 

year 2011 funding amount made available to 

that Indian tribe; and 

‘‘(bb) the remainder using tribal shares as 

described in subparagraphs (B) and (C). 

‘‘(IV) For fiscal year 2016 and thereafter— 

‘‘(aa) for each Indian tribe, 20 percent of 

the total relative need distribution factor and 

population adjustment factor for the fiscal 

year 2011 funding amount made available to 

that Indian tribe; and 

‘‘(bb) the remainder using tribal shares as 

described in subparagraphs (B) and (C). 

‘‘(ii) TRIBAL HIGH PRIORITY PROJECTS.—The High 

Priority Projects program as included in the Tribal 

Transportation Allocation Methodology of part 170 of 

title 25, Code of Federal Regulations (as in effect on the 

date of enactment of the MAP–21), shall not continue 

in effect. 

‘‘(B) TRIBAL SHARES.—Tribal shares under this program shall be determined using the national tribal transportation facility inventory as calculated for fiscal year 

2012, and the most recent data on American Indian and 

Alaska Native population within each Indian tribe’s American Indian/Alaska Native Reservation or Statistical Area, 

as computed under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 

et seq.), in the following manner: 


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‘‘(i) 27 percent in the ratio that the total eligible 

road mileage in each tribe bears to the total eligible 

road mileage of all American Indians and Alaskan Natives. For the purposes of this calculation, eligible road 

mileage shall be computed based on the inventory described in paragraph (1), using only facilities included 

in the inventory described in clause (i), (ii), or (iii) of 

paragraph (1)(B). 

‘‘(ii) 39 percent in the ratio that the total population in each tribe bears to the total population of all 

American Indians and Alaskan Natives. 

‘‘(iii) 34 percent shall be divided equally among 

each Bureau of Indian Affairs region. Within each region, such share of funds shall be distributed to each 

Indian tribe in the ratio that the average total relative 

need distribution factors and population adjustment 

factors from fiscal years 2005 through 2011 for a tribe 

bears to the average total of relative need distribution 

factors and population adjustment factors for fiscal 

years 2005 through 2011 in that region. 

‘‘(C) TRIBAL SUPPLEMENTAL FUNDING.— ‘‘(i) TRIBAL SUPPLEMENTAL FUNDING AMOUNT.—Of 

funds made available for each fiscal year for the tribal 

transportation program, the Secretary shall set aside 

the following amount for a tribal supplemental program: 

‘‘(I) If the amount made available for the tribal transportation program is less than or equal to 

$275,000,000, 30 percent of such amount. 

‘‘(II) If the amount made available for the trib- al transportation program exceeds $275,000,000— ‘‘(aa) $82,500,000; plus 

‘‘(bb) 12.5 percent of the amount made 

available for the tribal transportation program 

in excess of $275,000,000. 

‘‘(ii) TRIBAL SUPPLEMENTAL ALLOCATION.—The Secretary shall distribute tribal supplemental funds as follows: 

‘‘(I) DISTRIBUTION AMONG REGIONS.—Of the 

amounts set aside under clause (i), the Secretary 

shall distribute to each region of the Bureau of Indian Affairs a share of tribal supplemental funds 

in proportion to the regional total of tribal shares 

based on the cumulative tribal shares of all Indian 

tribes within such region under subparagraph (B). 

‘‘(II) DISTRIBUTION WITHIN A REGION.—Of the 

amount that a region receives under subclause (I), 

the Secretary shall distribute tribal supplemental 

funding among Indian tribes within such region as 

follows: 

‘‘(aa) TRIBAL SUPPLEMENTAL AMOUNTS.— The Secretary shall determine— 

‘‘(AA) which such Indian tribes would 

be entitled under subparagraph (A) to receive in a fiscal year less funding than 


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they would receive in fiscal year 2011 pursuant to the relative need distribution factor and population adjustment factor, as 

described in subpart C of part 170 of title 

25, Code of Federal Regulations (as in effect on the date of enactment of the MAP– 

21); and 

‘‘(BB) the combined amount that such 

Indian tribes would be entitled to receive 

in fiscal year 2011 pursuant to such relative need distribution factor and population adjustment factor in excess of the 

amount that they would be entitled to receive in the fiscal year under subparagraph (B). 

‘‘(bb) COMBINED AMOUNT.—Subject to subclause (III), the Secretary shall distribute to 

each Indian tribe that meets the criteria described in item (aa)(AA) a share of funding 

under this subparagraph in proportion to the 

share of the combined amount determined 

under item (aa)(BB) attributable to such Indian tribe. 

‘‘(III) CEILING.—An Indian tribe may not receive under subclause (II) and based on its tribal 

share under subparagraph (A) a combined amount 

that exceeds the amount that such Indian tribe 

would be entitled to receive in fiscal year 2011 pursuant to the relative need distribution factor and 

population adjustment factor, as described in subpart C of part 170 of title 25, Code of Federal Regulations (as in effect on the date of enactment of 

the MAP–21). 

‘‘(IV) OTHER AMOUNTS.—If the amount made 

available for a region under subclause (I) exceeds 

the amount distributed among Indian tribes within that region under subclause (II), the Secretary 

shall distribute the remainder of such region’s 

funding under such subclause among all Indian 

tribes in that region in proportion to the combined 

amount that each such Indian tribe received under 

subparagraph (A) and subclauses (I), (II), and 

(III).] 

‘‘(4) TRANSFERRED FUNDS.— 

‘‘(A) IN GENERAL.—Not later than 30 days after the 

date on which funds are made available to the Secretary of 

the Interior under this paragraph, the funds shall be distributed to, and made available for immediate use by, eligible Indian tribes, in accordance with the formula for distribution of funds under the tribal transportation program. 

‘‘(B) USE OF FUNDS.—Notwithstanding any other provision of this section, funds made available to Indian tribes 

for tribal transportation facilities shall be expended on 

projects identified in a transportation improvement program approved by the Secretary. 


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‘‘(5) HEALTH AND SAFETY ASSURANCES.—Notwithstanding 

any other provision of law, an Indian tribal government may 

approve plans, specifications, and estimates and commence 

road and bridge construction with funds made available from 

the tribal transportation program through a contract or agreement under Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.), if the Indian tribal government— 

‘‘(A) provides assurances in the contract or agreement 

that the construction will meet or exceed applicable health 

and safety standards; 

‘‘(B) obtains the advance review of the plans and specifications from a State-licensed civil engineer that has certified that the plans and specifications meet or exceed the 

applicable health and safety standards; and 

‘‘(C) provides a copy of the certification under subparagraph (A) to the Deputy Assistant Secretary for Tribal Government Affairs, Department of Transportation, or the Assistant Secretary for Indian Affairs, Department of the Interior, as appropriate. 

‘‘(6) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES.— ‘‘(A) IN GENERAL.—Notwithstanding any other provision of law or any interagency agreement, program guideline, manual, or policy directive, all funds made available 

through the Secretary of the Interior under this chapter 

and section 125(e) for tribal transportation facilities to pay 

for the costs of programs, services, functions, and activities, 

or portions of programs, services, functions, or activities, 

that are specifically or functionally related to the cost of 

planning, research, engineering, and construction of any 

tribal transportation facility shall be made available, upon 

request of the Indian tribal government, to the Indian tribal government for contracts and agreements for such planning, research, engineering, and construction in accordance 

with Indian Self-Determination and Education Assistance 

Act (25 U.S.C. 450 et seq.). 

‘‘(B) EXCLUSION OF AGENCY PARTICIPATION.—All funds, 

including contract support costs, for programs, functions, 

services, or activities, or portions of programs, services, 

functions, or activities, including supportive administrative 

functions that are otherwise contractible to which subparagraph (A) applies, shall be paid in accordance with subparagraph (A), without regard to the organizational level at 

which the Department of the Interior has previously carried 

out such programs, functions, services, or activities. 

‘‘(7) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES.— 

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law or any interagency agreement, program guideline, manual, or policy directive, all funds made available 

to an Indian tribal government under this chapter for a 

tribal transportation facility program or project shall be 

made available, on the request of the Indian tribal government, to the Indian tribal government for use in carrying 

out, in accordance with the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450 et seq.), contracts 


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and agreements for the planning, research, design, engineering, construction, and maintenance relating to the program or project. 

‘‘(B) EXCLUSION OF AGENCY PARTICIPATION.—In accordance with subparagraph (A), all funds, including contract 

support costs, for a program or project to which subparagraph (A) applies shall be paid to the Indian tribal government without regard to the organizational level at which 

the Department of the Interior has previously carried out, 

or the Department of Transportation has previously carried 

out under the tribal transportation program, the programs, 

functions, services, or activities involved. 

‘‘(C) CONSORTIA.—Two or more Indian tribes that are 

otherwise eligible to participate in a program or project to 

which this chapter applies may form a consortium to be 

considered as a single Indian tribe for the purpose of participating in the project under this section. 

‘‘(D) SECRETARY AS SIGNATORY.—Notwithstanding any 

other provision of law, the Secretary is authorized to enter 

into a funding agreement with an Indian tribal government 

to carry out a tribal transportation facility program or 

project under subparagraph (A) that is located on an Indian reservation or provides access to the reservation or a 

community of the Indian tribe. 

‘‘(E) FUNDING.—The amount an Indian tribal government receives for a program or project under subparagraph 

(A) shall equal the sum of the funding that the Indian tribal government would otherwise receive for the program or 

project in accordance with the funding formula established 

under this subsection and such additional amounts as the 

Secretary determines equal the amounts that would have 

been withheld for the costs of the Bureau of Indian Affairs 

for administration of the program or project. 

‘‘(F) ELIGIBILITY.— 

‘‘(i) IN GENERAL.—Subject to clause (ii) and the approval of the Secretary, funds may be made available 

under subparagraph (A) to an Indian tribal government for a program or project in a fiscal year only if 

the Indian tribal government requesting such funds 

demonstrates to the satisfaction of the Secretary financial stability and financial management capability 

during the 3 fiscal years immediately preceding the fiscal year for which the request is being made. 

‘‘(ii) CONSIDERATIONS.—An Indian tribal government that had no uncorrected significant and material 

audit exceptions in the required annual audit of the 

contracts or self-governance funding agreements made 

by the Indian tribe with any Federal agency under the 

Indian Self-Determination and Education Assistance 

Act (25 U.S.C. 450 et seq.) during the 3-fiscal year period referred in clause (i) shall be conclusive evidence 

of the financial stability and financial management capability of the Indian tribe for purposes of clause (i). 

‘‘(G) ASSUMPTION OF FUNCTIONS AND DUTIES.—An Indian tribal government receiving funding under subparaVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00088 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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graph (A) for a program or project shall assume all functions and duties that the Secretary of the Interior would 

have performed with respect to a program or project under 

this chapter, other than those functions and duties that inherently cannot be legally transferred under the Indian 

Self-Determination and Education Assistance Act (25 

U.S.C. 450 et seq.). 

‘‘(H) POWERS.—An Indian tribal government receiving 

funding under subparagraph (A) for a program or project 

shall have all powers that the Secretary of the Interior 

would have exercised in administering the funds transferred to the Indian tribal government for such program or 

project under this section if the funds had not been transferred, except to the extent that such powers are powers that 

inherently cannot be legally transferred under the Indian 

Self-Determination and Education Assistance Act (25 

U.S.C. 450 et seq.). 

‘‘(I) DISPUTE RESOLUTION.—In the event of a disagreement between the Secretary or the Secretary of the Interior 

and an Indian tribe over whether a particular function, 

duty, or power may be lawfully transferred to the Indian 

tribe under the Indian Self-Determination and Education 

Assistance Act (25 U.S.C. 450 et seq.), the Indian tribe 

shall have the right to pursue all alternative dispute resolution and appeal procedures authorized by that Act, including regulations issued to carry out the Act. 

‘‘(J) TERMINATION OF CONTRACT OR AGREEMENT.—On 

the date of the termination of a contract or agreement 

under this section by an Indian tribal government, the Secretary shall transfer all funds that would have been allocated to the Indian tribal government under the contract or 

agreement to the Secretary of the Interior to provide continued transportation services in accordance with applicable 

law. 

‘‘(c) PLANNING.— 

‘‘(1) IN GENERAL.—For each fiscal year, not more than 2 

percent of the funds made available for the tribal transportation program shall be allocated among Indian tribal governments that apply for transportation planning pursuant to the 

Indian Self-Determination and Education Assistance Act (25 

U.S.C. 450 et seq.). 

‘‘(2) REQUIREMENT.—An Indian tribal government, in cooperation with the Secretary of the Interior and, as appropriate, 

with a State, local government, or metropolitan planning organization, shall carry out a transportation planning process in 

accordance with section 201(c). 

‘‘(3) SELECTION AND APPROVAL OF PROJECTS.—A project 

funded under this section shall be— 

‘‘(A) selected by the Indian tribal government from the 

transportation improvement program; and 

‘‘(B) subject to the approval of the Secretary of the Interior and the Secretary. 

‘‘(d) TRIBAL TRANSPORTATION FACILITY BRIDGES.— 


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‘‘(1) NATIONWIDE PRIORITY PROGRAM.—The Secretary shall 

maintain a nationwide priority program for improving deficient 

bridges eligible for the tribal transportation program. 

‘‘(2) FUNDING.—Before making any distribution under subsection (b), the Secretary shall set aside not more than 2 percent 

of the funds made available under the tribal transportation 

program for each fiscal year to be allocated— 

‘‘(A) to carry out any planning, design, engineering, 

preconstruction, construction, and inspection of a project to 

replace, rehabilitate, seismically retrofit, paint, apply calcium magnesium acetate, sodium acetate/formate, or other 

environmentally acceptable, minimally corrosive anti-icing 

and deicing composition; or 

‘‘(B) to implement any countermeasure for deficient 

tribal transportation facility bridges, including multiplepipe culverts. 

‘‘(3) ELIGIBLE BRIDGES.—To be eligible to receive funding 

under this subsection, a bridge described in paragraph (1) 

shall— 

‘‘(A) have an opening of not less than 20 feet; 

‘‘(B) be classified as a tribal transportation facility; 

and 

‘‘(C) be structurally deficient or functionally obsolete. 

‘‘(4) APPROVAL REQUIREMENT.—The Secretary may make 

funds available under this subsection for preliminary engineering, construction, and construction engineering activities after 

approval of required documentation and verification of eligibility in accordance with this title. 

‘‘(e) SAFETY.— 

‘‘(1) FUNDING.—Before making any distribution under subsection (b), the Secretary shall set aside not more than 2 percent 

of the funds made available under the tribal transportation 

program for each fiscal year to be allocated based on an identification and analysis of highway safety issues and opportunities 

on tribal land, as determined by the Secretary, on application 

of the Indian tribal governments for eligible projects described 

in section 148(a)(4). 

‘‘(2) PROJECT SELECTION.—An Indian tribal government, in 

cooperation with the Secretary of the Interior and, as appropriate, with a State, local government, or metropolitan planning 

organization, shall select projects from the transportation improvement program, subject to the approval of the Secretary 

and the Secretary of the Interior. 

‘‘(f) FEDERAL-AID ELIGIBLE PROJECTS.—Before approving as a 

project on a tribal transportation facility any project eligible for 

funds apportioned under section 104 in a State, the Secretary shall, 

for projects on tribal transportation facilities, determine that the obligation of funds for the project is supplementary to and not in lieu 

of the obligation of a fair and equitable share of funds apportioned 

to the State under section 104. 

‘‘§ 203. Federal lands transportation program 

‘‘(a) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—Funds made available under the Federal 

lands transportation program shall be used by the Secretary of 


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Transportation and the Secretary of the appropriate Federal 

land management agency to pay the costs of— 

‘‘(A) program administration, transportation planning, 

research, preventive maintenance, engineering, rehabilitation, restoration, construction, and reconstruction of Federal lands transportation facilities, and— 

‘‘(i) adjacent vehicular parking areas; 

‘‘(ii) acquisition of necessary scenic easements and 

scenic or historic sites; 

‘‘(iii) provision for pedestrians and bicycles; 

‘‘(iv) environmental mitigation in or adjacent to 

Federal land open to the public— 

‘‘(I) to improve public safety and reduce vehicle-caused wildlife mortality while maintaining 

habitat connectivity; and 

‘‘(II) to mitigate the damage to wildlife, aquatic organism passage, habitat, and ecosystem 

connectivity, including the costs of constructing, 

maintaining, replacing, or removing culverts and 

bridges, as appropriate; 

‘‘(v) construction and reconstruction of roadside 

rest areas, including sanitary and water facilities; 

‘‘(vi) congestion mitigation; and 

‘‘(vii) other appropriate public road facilities, as 

determined by the Secretary; 

‘‘(B) operation and maintenance of transit facilities; 

‘‘(C) any transportation project eligible for assistance 

under this title that is on a public road within or adjacent 

to, or that provides access to, Federal lands open to the 

public; and ‘‘(D) not more $10,000,000 of the amounts made available per fiscal year to carry out this section for activities eligible under subparagraph (A)(iv). 

‘‘(2) CONTRACT.—In connection with an activity described 

in paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into a contract or other appropriate agreement with respect to the activity 

with— 

‘‘(A) a State (including a political subdivision of a 

State); or 

‘‘(B) an Indian tribe. 

‘‘(3) ADMINISTRATION.—All appropriations for the construction and improvement of Federal lands transportation facilities 

shall be administered in conformity with regulations and agreements jointly approved by the Secretary and the Secretary of the 

appropriate Federal land managing agency. 

‘‘(4) COOPERATION.— 

‘‘(A) IN GENERAL.—The cooperation of States, counties, 

or other local subdivisions may be accepted in construction 

and improvement. 

‘‘(B) FUNDS RECEIVED.—Any funds received from a 

State, county, or local subdivision shall be credited to appropriations available for the class of Federal lands transportation facilities to which the funds were contributed. 

‘‘(5) COMPETITIVE BIDDING.— 


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‘‘(A) IN GENERAL.—Subject to subparagraph (B), construction of each project shall be performed by contract 

awarded by competitive bidding. 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply if 

the Secretary or the Secretary of the appropriate Federal 

land management agency affirmatively finds that, under 

the circumstances relating to the project, a different method 

is in the public interest. 

‘‘(b) AGENCY PROGRAM DISTRIBUTIONS.— 

‘‘(1) IN GENERAL.—On October 1, 2011, and on October 1 of 

each fiscal year thereafter, the Secretary shall allocate the sums 

authorized to be appropriated for the fiscal year for the Federal 

lands transportation program on the basis of applications of 

need, as determined by the Secretary— 

‘‘(A) in consultation with the Secretaries of the applicable Federal land management agencies; and 

‘‘(B) in coordination with the transportation plans required under section 201 of the respective transportation 

systems of— 

‘‘(i) the National Park Service; 

‘‘(ii) the Forest Service; 

‘‘(iii) the United States Fish and Wildlife Service; 

‘‘(iv) the Corps of Engineers; and 

‘‘(v) the Bureau of Land Management. 

‘‘(2) APPLICATIONS.— 

‘‘(A) REQUIREMENTS.—Each application submitted by a 

Federal land management agency shall include proposed 

programs at various potential funding levels, as defined by 

the Secretary following collaborative discussions with applicable Federal land management agencies. 

‘‘(B) CONSIDERATION BY SECRETARY.—In evaluating an 

application submitted under subparagraph (A), the Secretary shall consider the extent to which the programs support— 

‘‘(i) the transportation goals of— 

‘‘(I) a state of good repair of transportation facilities; 

‘‘(II) a reduction of bridge deficiencies, and 

‘‘(III) an improvement of safety; 

‘‘(ii) high-use Federal recreational sites or Federal 

economic generators; and 

‘‘(iii) the resource and asset management goals of 

the Secretary of the respective Federal land management agency. 

‘‘(C) PERMISSIVE CONTENTS.—Applications may include 

proposed programs the duration of which extend over a 

multiple-year period to support long-term transportation 

planning and resource management initiatives. 

‘‘(c) NATIONAL FEDERAL LANDS TRANSPORTATION FACILITY INVENTORY.— 

‘‘(1) IN GENERAL.—The Secretaries of the appropriate Federal land management agencies, in cooperation with the Secretary, shall maintain a comprehensive national inventory of 

public Federal lands transportation facilities. 


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‘‘(2) TRANSPORTATION FACILITIES INCLUDED IN THE INVENTORIES.—To identify the Federal lands transportation system 

and determine the relative transportation needs among Federal 

land management agencies, the inventories shall include, at a 

minimum, facilities that— 

‘‘(A) provide access to high-use Federal recreation sites 

or Federal economic generators, as determined by the Secretary in coordination with the respective Secretaries of the 

appropriate Federal land management agencies; and 

‘‘(B) are owned by 1 of the following agencies: 

‘‘(i) The National Park Service. 

‘‘(ii) The Forest Service. 

‘‘(iii) The United States Fish and Wildlife Service. 

‘‘(iv) The Bureau of Land Management. 

‘‘(v) The Corps of Engineers. 

‘‘(3) AVAILABILITY.—The inventories shall be made available to the Secretary. 

‘‘(4) UPDATES.—The Secretaries of the appropriate Federal 

land management agencies shall update the inventories of the 

appropriate Federal land management agencies, as determined 

by the Secretary after collaborative discussions with the Secretaries of the appropriate Federal land management agencies. 

‘‘(5) REVIEW.—A decision to add or remove a facility from 

the inventory shall not be considered a Federal action for purposes of review under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.). 

‘‘(d) BICYCLE SAFETY.—The Secretary of the appropriate Federal 

land management agency shall prohibit the use of bicycles on each 

federally owned road that has a speed limit of 30 miles per hour 

or greater and an adjacent paved path for use by bicycles within 

100 yards of the road unless the Secretary determines that the bicycle level of service on that roadway is rated B or higher. 

‘‘§ 204. Federal lands access program 

‘‘(a) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—Funds made available under the Federal 

lands access program shall be used by the Secretary of Transportation and the Secretary of the appropriate Federal land 

management agency to pay the cost of— 

‘‘(A) transportation planning, research, engineering, 

preventive maintenance, rehabilitation, restoration, construction, and reconstruction of Federal lands access transportation facilities located on or adjacent to, or that provide 

access to, Federal land, and— 

‘‘(i) adjacent vehicular parking areas; 

‘‘(ii) acquisition of necessary scenic easements and 

scenic or historic sites; 

‘‘(iii) provisions for pedestrians and bicycles; 

‘‘(iv) environmental mitigation in or adjacent to 

Federal land to improve public safety and reduce vehicle-caused wildlife mortality while maintaining habitat 

connectivity; 

‘‘(v) construction and reconstruction of roadside 

rest areas, including sanitary and water facilities; and 


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‘‘(vi) other appropriate public road facilities, as determined by the Secretary; 

‘‘(B) operation and maintenance of transit facilities; 

and 

‘‘(C) any transportation project eligible for assistance 

under this title that is within or adjacent to, or that provides access to, Federal land. 

‘‘(2) CONTRACT.—In connection with an activity described 

in paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency may enter into a contract or other appropriate agreement with respect to the activity 

with— 

‘‘(A) a State (including a political subdivision of a 

State); or 

‘‘(B) an Indian tribe. 

‘‘(3) ADMINISTRATION.—All appropriations for the construction and improvement of Federal lands access transportation 

facilities shall be administered in conformity with regulations 

and agreements approved by the Secretary. 

‘‘(4) COOPERATION.— 

‘‘(A) IN GENERAL.—The cooperation of States, counties, 

or other local subdivisions may be accepted in construction 

and improvement. 

‘‘(B) FUNDS RECEIVED.—Any funds received from a 

State, county, or local subdivision for a Federal lands access transportation facility project shall be credited to appropriations available under the Federal lands access program. 

‘‘(5) COMPETITIVE BIDDING.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), construction of each project shall be performed by contract 

awarded by competitive bidding. 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply if 

the Secretary or the Secretary of the appropriate Federal 

land management agency affirmatively finds that, under 

the circumstances relating to the project, a different method 

is in the public interest. 

‘‘(b) PROGRAM DISTRIBUTIONS.— ‘‘(1) IN GENERAL.—Funding made available to carry out the 

Federal lands access program shall be allocated among those 

States that have Federal land, in accordance with the following 

formula: 

‘‘(A) 80 percent of the available funding for use in those 

States that contain at least 11⁄2 percent of the total public 

land in the United States managed by the agencies described in paragraph (2), to be distributed as follows: 

‘‘(i) 30 percent in the ratio that— 

‘‘(I) recreational visitation within each such 

State; bears to 

‘‘(II) the recreational visitation within all such 

States. 

‘‘(ii) 5 percent in the ratio that— 

‘‘(I) the Federal land area within each such 

State; bears to 

‘‘(II) the Federal land area in all such States. 


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‘‘(iii) 55 percent in the ratio that— 

‘‘(I) the Federal public road miles within each 

such State; bears to 

‘‘(II) the Federal public road miles in all such 

States. 

‘‘(iv) 10 percent in the ratio that— 

‘‘(I) the number of Federal public bridges within each such State; bears to 

‘‘(II) the number of Federal public bridges in 

all such States. 

‘‘(B) 20 percent of the available funding for use in those 

States that do not contain at least 11⁄2 percent of the total 

public land in the United States managed by the agencies 

described in paragraph (2), to be distributed as follows: 

‘‘(i) 30 percent in the ratio that— 

‘‘(I) recreational visitation within each such 

State; bears to 

‘‘(II) the recreational visitation within all such 

States. 

‘‘(ii) 5 percent in the ratio that— 

‘‘(I) the Federal land area within each such 

State; bears to 

‘‘(II) the Federal land area in all such States. 

‘‘(iii) 55 percent in the ratio that— 

‘‘(I) the Federal public road miles within each 

such State; bears to 

‘‘(II) the Federal public road miles in all such 

States. 

‘‘(iv) 10 percent in the ratio that— 

‘‘(I) the number of Federal public bridges within each such State; bears to 

‘‘(II) the number of Federal public bridges in 

all such States. 

‘‘(2) DATA SOURCE.—Data necessary to distribute funding 

under paragraph (1) shall be provided by the following Federal 

land management agencies: 

‘‘(A) The National Park Service. 

‘‘(B) The Forest Service. 

‘‘(C) The United States Fish and Wildlife Service. 

‘‘(D) The Bureau of Land Management. 

‘‘(E) The Corps of Engineers. 

‘‘(c) PROGRAMMING DECISIONS COMMITTEE.— 

‘‘(1) IN GENERAL.—Programming decisions shall be made 

within each State by a committee comprised of— 

‘‘(A) a representative of the Federal Highway Administration; 

‘‘(B) a representative of the State Department of Transportation; and 

‘‘(C) a representative of any appropriate political subdivision of the State. 

‘‘(2) CONSULTATION REQUIREMENT.—The committee described in paragraph (1) shall cooperate with each applicable 

Federal agency in each State before any joint discussion or final 

programming decision. 


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‘‘(3) PROJECT PREFERENCE.—In making a programming decision under paragraph (1), the committee shall give preference 

to projects that provide access to, are adjacent to, or are located 

within high-use Federal recreation sites or Federal economic 

generators, as identified by the Secretaries of the appropriate 

Federal land management agencies.’’. 

(b) PUBLIC LANDS DEVELOPMENT ROADS AND TRAILS.—Section 

214 of title 23, United States Code, is repealed. 

(c) CONFORMING AMENDMENTS.— 

(1) CHAPTER 2 ANALYSIS.—The analysis for chapter 2 of 

title 23, United States Code, is amended— 

(A) by striking the items relating to sections 201 

through 204 and inserting the following: 

‘‘201. Federal lands and tribal transportation programs. 

‘‘202. Tribal transportation program. 

‘‘203. Federal lands transportation program. 

‘‘204. Federal lands access program.’’; and 

(B) by striking the item relating to section 214. 

(2) DEFINITION.—Section 138(a) of title 23, United States 

Code, is amended in the third sentence by striking ‘‘park road 

or parkway under section 204 of this title’’ and inserting ‘‘Federal lands transportation facility’’. 

(3) RULES, REGULATIONS, AND RECOMMENDATIONS.—Section 315 of title 23, United States Code, is amended by striking 

‘‘204(f)’’ and inserting ‘‘202(a)(5), 203(a)(3),’’. 

SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE. 

Section 1301 of the SAFETEA–LU (23 U.S.C. 101 note; 119 

Stat. 1198) is amended— 

(1) in subsection (b), by striking ‘‘States’’ and inserting ‘‘eligible applicants’’; 

(2) in subsection (c), by striking paragraph (3) and inserting the following: 

‘‘(3) ELIGIBLE APPLICANT.—The term ‘eligible applicant’ 

means— 

‘‘(A) a State department of transportation or a group of 

State departments of transportation; 

‘‘(B) a tribal government or consortium of tribal governments; 

‘‘(C) a transit agency; or 

‘‘(D) a multi-State or multi-jurisdictional group of the 

agencies described in subparagraphs (A) through (C).’’; 

(3) in subsection (d)(2), by striking ‘‘75’’ and inserting ‘‘50’’; 

(4) in subsection (e), by striking ‘‘State’’ and inserting ‘‘eligible applicant’’; 

(5) in subsection (f)(3) by striking subparagraph (B) and inserting the following: 

‘‘(B) improves roadways vital to national energy security; and’’; 

(6) in subsection (g)(1) by adding at the end the following: 

‘‘(E) CONGRESSIONAL APPROVAL.—The Secretary may 

not issue a letter of intent, enter into a full funding grant 

agreement under paragraph (2), or make any other obligation or commitment to fund a project under this section if 

a joint resolution of disapproval is enacted disapproving 


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funding for the project before the last day of the 60-day period described in subparagraph (B).’’; 

(7) in subsection (k), by adding at the end the following: 

‘‘(3) PROJECT SELECTION JUSTIFICATIONS.— ‘‘(A) IN GENERAL.—Not later than 30 days after the 

date on which the Secretary selects a project for funding 

under this section, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Environment and 

Public Works of the Senate a report that describes the reasons for selecting the project, based on the criteria described 

in subsection (f). 

‘‘(B) INCLUSIONS.—The report submitted under subparagraph (A) shall specify each criteria described in subsection (f) that the project meets. 

‘‘(C) AVAILABILITY.—The Secretary shall make available on the website of the Department the report submitted 

under subparagraph (A).’’; and 

(8) by striking subsections (l) and (m) and inserting the following: 

‘‘(l) REPORT.— ‘‘(1) IN GENERAL.—Not later than 2 years after the date of 

enactment of the MAP–21, the Secretary shall submit a report 

to the Committee on Transportation and Infrastructure of the 

House of Representatives and the Committee on Environment 

and Public Works of the Senate regarding projects of national 

and regional significance. 

‘‘(2) PURPOSE.—The purpose of the report issued under this 

subsection shall be to identify projects of national and regional 

significance that— 

‘‘(A) will significantly improve the performance of the 

Federal-aid highway system, nationally or regionally; 

‘‘(B) is able to— 

‘‘(i) generate national economic benefits that reasonably exceed the costs of the projects, including increased access to jobs, labor, and other critical economic inputs; 

‘‘(ii) reduce long-term congestion, including impacts in the State, region, and the United States, and 

increase speed, reliability, and accessibility of the 

movement of people or freight; and 

‘‘(iii) improve transportation safety, including reducing transportation accidents, and serious injuries 

and fatalities; and 

‘‘(C) can be supported by an acceptable degree of nonFederal financial commitments. 

‘‘(3) CONTENTS.—The report issued under this subsection 

shall include— 

‘‘(A) a comprehensive list of each project of national 

and regional significance that— 

‘‘(i) has been complied through a survey of State 

departments of transportation; and 

‘‘(ii) has been classified by the Secretary as a 

project of regional or national significance in accordance with this section; 


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‘‘(B) an analysis of the information collected under 

paragraph (1), including a discussion of the factors supporting each classification of a project as a project of regional or national significance; and 

‘‘(C) recommendations on financing for eligible project 

costs. 

‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $500,000,000 for fiscal 

year 2013, to remain available until expended.’’. 

SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 

FACILITIES. 

(a) CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FA- CILITIES.—Section 147 of title 23, United States Code, is amended— 

(1) by striking subsections (c) and (d); 

(2) by redesignating subsections (e) and (f) as subsections 

(f) and (g), respectively; and 

(3) by inserting after subsection (b) the following: 

‘‘(c) DISTRIBUTION OF FUNDS.—Of the amounts made available 

to ferry systems and public entities responsible for developing ferries 

under this section for a fiscal year, 100 percent shall be allocated 

in accordance with the formula set forth in subsection (d). 

‘‘(d) FORMULA.—Of the amounts allocated pursuant to subsection (c)— 

‘‘(1) 20 percent shall be allocated among eligible entities in 

the proportion that— 

‘‘(A) the number of ferry passengers carried by each 

ferry system in the most recent fiscal year; bears to 

‘‘(B) the number of ferry passengers carried by all ferry 

systems in the most recent fiscal year; 

‘‘(2) 45 percent shall be allocated among eligible entities in 

the proportion that— 

‘‘(A) the number of vehicles carried by each ferry system 

in the most recent fiscal year; bears to 

‘‘(B) the number of vehicles carried by all ferry systems 

in the most recent fiscal year; and 

‘‘(3) 35 percent shall be allocated among eligible entities in 

the proportion that— 

‘‘(A) the total route miles serviced by each ferry system; 

bears to 

‘‘(B) the total route miles serviced by all ferry systems. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated out of the Highway Trust Fund (other than the 

Mass Transit Account) to carry out this section $67,000,000 for each 

of fiscal years 2013 and 2014.’’. 

(b) NATIONAL FERRY DATABASE.—Section 1801(e) of the 

SAFETEA–LU (23 U.S.C. 129 note; Public Law 109–59) is amended— 

(1) in paragraph (2), by inserting ‘‘, including any Federal, 

State, and local government funding sources,’’ after ‘‘sources’’; 

and 

(2) in paragraph (4)— 

(A) in subparagraph (B), by striking ‘‘and’’ at the end; 

(B) by redesignating subparagraph (C) as subparagraph (D); 

(C) by inserting after subparagraph (B), the following: 


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‘‘(C) ensure that the database is consistent with the national transit database maintained by the Federal Transit 

Administration; and’’; and 

(D) in subparagraph (D) (as redesignated by subparagraph (B)), by striking ‘‘2009’’ and inserting ‘‘2014’’. 

SEC. 1122. TRANSPORTATION ALTERNATIVES. 

(a) IN GENERAL.—Section 213 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 213. Transportation alternatives 

‘‘(a) RESERVATION OF FUNDS.— ‘‘(1) IN GENERAL.—On October 1 of each of fiscal years 2013 

and 2014, the Secretary shall proportionally reserve from the 

funds apportioned to a State under section 104(b) to carry out 

the requirements of this section an amount equal to the amount 

obtained by multiplying the amount determined under paragraph (2) by the ratio that— 

‘‘(A) the amount apportioned to the State for the transportation enhancements program for fiscal year 2009 under 

section 133(d)(2), as in effect on the day before the date of 

enactment of the MAP–21; bears to 

‘‘(B) the total amount of funds apportioned to all States 

for that fiscal year for the transportation enhancements 

program for fiscal year 2009. 

‘‘(2) CALCULATION OF NATIONAL AMOUNT.—The Secretary 

shall determine an amount for each fiscal year that is equal to 

2 percent of the amounts authorized to be appropriated for such 

fiscal year from the Highway Trust Fund (other than the Mass 

Transit Account) to carry out chapters 1, 2, 5, and 6 of this 

title. 

‘‘(b) ELIGIBLE PROJECTS.—A State may obligate the funds reserved under this section for any of the following projects or activities: 

‘‘(1) Transportation alternatives, as defined in section 101. 

‘‘(2) The recreational trails program under section 206. 

‘‘(3) The safe routes to school program under section 1404 

of the SAFETEA–LU (23 U.S.C. 402 note; Public Law 109–59). 

‘‘(4) Planning, designing, or constructing boulevards and 

other roadways largely in the right-of-way of former Interstate 

System routes or other divided highways. 

‘‘(c) ALLOCATIONS OF FUNDS.— ‘‘(1) CALCULATION.—Of the funds reserved in a State under 

this section— 

‘‘(A) 50 percent for a fiscal year shall be obligated 

under this section to any eligible entity in proportion to 

their relative shares of the population of the State— 

‘‘(i) in urbanized areas of the State with an urbanized area population of over 200,000; 

‘‘(ii) in areas of the State other than urban areas 

with a population greater than 5,000; and 

‘‘(iii) in other areas of the State; and 

‘‘(B) 50 percent shall be obligated in any area of the 

State. 

‘‘(2) METROPOLITAN AREAS.—Funds attributed to an urbanized area under paragraph (1)(A)(i) may be obligated in the 


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metropolitan area established under section 134 that encompasses the urbanized area. 

‘‘(3) DISTRIBUTION AMONG URBANIZED AREAS OF OVER

200,000 POPULATION.— ‘‘(A) IN GENERAL.—Except as provided in paragraph 

(1)(B), the amount of funds that a State is required to obligate under paragraph (1)(A)(i) shall be obligated in urbanized areas described in paragraph (1)(A)(i) based on the relative population of the areas. 

‘‘(B) OTHER FACTORS.—A State may obligate the funds 

described in subparagraph (A) based on other factors if the 

State and the relevant metropolitan planning organizations 

jointly apply to the Secretary for the permission to base the 

obligation on other factors and the Secretary grants the request. 

‘‘(4) ACCESS TO FUNDS.— 

‘‘(A) IN GENERAL.—Each State or metropolitan planning organization required to obligate funds in accordance 

with paragraph (1) shall develop a competitive process to 

allow eligible entities to submit projects for funding that 

achieve the objectives of this subsection. 

‘‘(B) DEFINITION OF ELIGIBLE ENTITY.—In this paragraph, the term ‘eligible entity’ means— 

‘‘(i) a local government; 

‘‘(ii) a regional transportation authority; 

‘‘(iii) a transit agency; 

‘‘(iv) a natural resource or public land agency; 

‘‘(v) a school district, local education agency, or 

school; 

‘‘(vi) a tribal government; and 

‘‘(vii) any other local or regional governmental entity with responsibility for or oversight of transportation or recreational trails (other than a metropolitan 

planning organization or a State agency) that the State 

determines to be eligible, consistent with the goals of 

this subsection. 

‘‘(5) SELECTION OF PROJECTS.—For funds reserved in a 

State under this section and suballocated to a metropolitan 

planning area under paragraph (1)(A)(i), each such metropolitan planning organization shall select projects carried out within the boundaries of the applicable metropolitan planning area, 

in consultation with the relevant State. 

‘‘(d) FLEXIBILITY OF EXCESS RESERVED FUNDING.—Beginning in 

the second fiscal year after the date of enactment of the MAP–21, 

if on August 1 of that fiscal year the unobligated balance of available funds reserved by a State under this section exceeds 100 percent of such reserved amount in such fiscal year, the State may 

thereafter obligate the amount of excess funds for any activity— 

‘‘(1) that is eligible to receive funding under this section; or 

‘‘(2) for which the Secretary has approved the obligation of 

funds for any State under section 149. 

‘‘(e) TREATMENT OF PROJECTS.—Notwithstanding any other provision of law, projects funded under this section (excluding those 

carried out under subsection (f)) shall be treated as projects on a 

Federal-aid highway under this chapter. 


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‘‘(f) CONTINUATION OF CERTAIN RECREATIONAL TRAILS

PROJECTS.—Each State shall— 

‘‘(1) obligate an amount of funds reserved under this section 

equal to the amount of the funds apportioned to the State for 

fiscal year 2009 under section 104(h)(2) for projects relating to 

recreational trails under section 206; 

‘‘(2) return 1 percent of those funds to the Secretary for the 

administration of that program; and 

‘‘(3) comply with the provisions of the administration of the 

recreational trails program under section 206, including the use 

of apportioned funds described under subsection (d)(3)(A) of 

that section. 

‘‘(g) STATE FLEXIBILITY.—A State may opt out of the recreational trails program under subsection (f) if the Governor of the 

State notifies the Secretary not later than 30 days prior to apportionments being made for any fiscal year.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 2 of 

title 23, United States Code, is amended by striking the item relating to section 213 and inserting the following: 

‘‘213. Transportation alternatives’’. 

SEC. 1123. TRIBAL HIGH PRIORITY PROJECTS PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) EMERGENCY OR DISASTER.—The term ‘‘emergency or disaster’’ means damage to a tribal transportation facility that— 

(A) renders the tribal transportation facility impassable or unusable; 

(B) is caused by— 

(i) a natural disaster over a widespread area; or 

(ii) a catastrophic failure from an external cause; 

and 

(C) would be eligible under the emergency relief program under section 125 of title 23, United States Code, but 

does not meet the funding thresholds required by that section. 

(2) LIST.—The term ‘‘list’’ means the funding priority list 

developed under subsection (c)(5). 

(3) PROGRAM.—The term ‘‘program’’ means the Tribal High 

Priority Projects program established under subsection (b)(1). 

(4) PROJECT.—The term ‘‘project’’ means a project provided 

funds under the program. 

(b) PROGRAM.— 

(1) IN GENERAL.—The Secretary shall use amounts made 

available under subsection (h) to carry out a Tribal High Priority Projects program under which funds shall be provided to 

eligible applicants in accordance with this section. 

(2) ELIGIBLE APPLICANTS.—Applicants eligible for program 

funds under this section include— 

(A) an Indian tribe whose annual allocation of funding 

under section 202 of title 23, United States Code, is insufficient to complete the highest priority project of the Indian 

tribe; 

(B) a governmental subdivision of an Indian tribe— 

(i) that is authorized to administer the funding of 

the Indian tribe under section 202 of title 23, United 

States Code; and 


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(ii) for which the annual allocation under that section is insufficient to complete the highest priority 

project of the Indian tribe; or 

(C) any Indian tribe that has an emergency or disaster 

with respect to a transportation facility included on the national inventory of tribal transportation facilities under section 202(b)(1) of title 23, United States Code. 

(c) PROJECT APPLICATIONS; FUNDING.— (1) IN GENERAL.—To apply for funds under this section, an 

eligible applicant shall submit to the Department of the Interior 

or the Department an application that includes— 

(A) project scope of work, including deliverables, budget, and timeline; 

(B) the amount of funds requested; 

(C) project information addressing— 

(i) the ranking criteria identified in paragraph (3); 

or 

(ii) the nature of the emergency or disaster; 

(D) documentation that the project meets the definition 

of a tribal transportation facility and is included in the national inventory of tribal transportation facilities under section 202(b)(1) of title 23, United States Code; 

(E) documentation of official tribal action requesting 

the project; 

(F) documentation from the Indian tribe providing authority for the Secretary of the Interior to place the project 

on a transportation improvement program if the project is 

selected and approved; and 

(G) any other information the Secretary of the Interior 

or Secretary considers appropriate to make a determination. 

(2) LIMITATION ON APPLICATIONS.—An applicant for funds 

under the program may only have 1 application for assistance 

under this section pending at any 1 time, including any emergency or disaster application. 

(3) APPLICATION RANKING.— (A) IN GENERAL.—The Secretary of the Interior and the 

Secretary shall determine the eligibility of, and fund, program applications, subject to the availability of funds. 

(B) RANKING CRITERIA.—The project ranking criteria 

for applications under this section shall include— 

(i) the existence of safety hazards with documented 

fatality and injury accidents; 

(ii) the number of years since the Indian tribe last 

completed a construction project funded by section 202 

of title 23, United States Code; 

(iii) the readiness of the Indian tribe to proceed to 

construction or bridge design need; 

(iv) the percentage of project costs matched by 

funds that are not provided under section 202 of title 

23, United States Code, with projects with a greater 

percentage of other sources of matching funds ranked 

ahead of lesser matches); 

(v) the amount of funds requested, with requests 

for lesser amounts given greater priority; 


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(vi) the challenges caused by geographic isolation; 

and 

(vii) all weather access for employment, commerce, 

health, safety, educational resources, or housing. 

(4) PROJECT SCORING MATRIX.—The project scoring matrix 

established in the appendix to part 170 of title 25, Code of Regulations (as in effect on the date of enactment of this Act) shall 

be used to rank all applications accepted under this section. 

(5) FUNDING PRIORITY LIST.— (A) IN GENERAL.—The Secretary of the Interior and the 

Secretary shall jointly produce a funding priority list that 

ranks the projects approved for funding under the program. 

(B) LIMITATION.—The number of projects on the list 

shall be limited by the amount of funding made available. 

(6) TIMELINE.—The Secretary of the Interior and the Secretary shall— 

(A) require applications for funding no sooner than 60 

days after funding is made available pursuant to subsection (a); 

(B) notify all applicants and Regions in writing of acceptance of applications; 

(C) rank all accepted applications in accordance with 

the project scoring matrix, develop the funding priority list, 

and return unaccepted applications to the applicant with 

an explanation of deficiencies; 

(D) notify all accepted applicants of the projects included on the funding priority list no later than 180 days 

after the application deadline has passed pursuant to subparagraph (A); and 

(E) distribute funds to successful applicants. 

(d) EMERGENCY OR DISASTER PROJECT APPLICATIONS.— (1) IN GENERAL.—Notwithstanding subsection (c)(6), an eligible applicant may submit an emergency or disaster project application at any time during the fiscal year. 

(2) CONSIDERATION AS PRIORITY.—The Secretary shall— 

(A) consider project applications submitted under paragraph (1) to be a priority; and 

(B) fund the project applications in accordance with 

paragraph (3). 

(3) FUNDING.— 

(A) IN GENERAL.—If an eligible applicant submits an 

application for a project under this subsection before the 

issuance of the list under subsection (c)(5) and the project 

is determined to be eligible for program funds, the Secretary of the Interior shall provide funding for the project 

before providing funding for other approved projects on the 

list. 

(B) SUBMISSION AFTER ISSUANCE OF LIST.—If an eligible applicant submits an application under this subsection 

after the issuance of the list under subsection (c)(5) and the 

distribution of program funds in accordance with the list, 

the Secretary of the Interior shall provide funding for the 

project on the date on which unobligated funds provided to 

projects on the list are returned to the Department of the 

Interior. 


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(C) EFFECT ON OTHER PROJECTS.—If the Secretary of 

the Interior uses funding previously designated for a project 

on the list to fund an emergency or disaster project under 

this subsection, the project on the list that did not receive 

funding as a result of the redesignation of funds shall move 

to the top of the list the following year. 

(4) EMERGENCY OR DISASTER PROJECT COST.—The cost of a 

project submitted as an emergency or disaster under this subsection shall be at least 10 percent of the distribution of funds 

of the Indian tribe under section 202(b) of title 23, United 

States Code. 

(e) LIMITATION ON USE OF FUNDS.—Program funds shall not be 

used for— 

(1) transportation planning; 

(2) research; 

(3) routine maintenance activities; 

(4) structures and erosion protection unrelated to transportation and roadways; 

(5) general reservation planning not involving transportation; 

(6) landscaping and irrigation systems not involving transportation programs and projects; 

(7) work performed on projects that are not included on a 

transportation improvement program approved by the Federal 

Highway Administration, unless otherwise authorized by the 

Secretary of the Interior and the Secretary; 

(8) the purchase of equipment unless otherwise authorized 

by Federal law; or 

(9) the condemnation of land for recreational trails. 

(f) LIMITATION ON PROJECT AMOUNTS.—Project funding shall 

be limited to a maximum of $1,000,000 per application, except that 

funding for disaster or emergency projects shall also be limited to 

the estimated cost of repairing damage to the tribal transportation 

facility. 

(g) COST ESTIMATE CERTIFICATION.—All cost estimates prepared for a project shall be required to be submitted by the applicant to the Secretary of the Interior and the Secretary for certification and approval. 

(h) AUTHORIZATION OF APPROPRIATIONS.— 

(1) IN GENERAL.—There is authorized to be appropriated 

$30,000,000 out of the general fund of the Treasury to carry out 

the program for each of fiscal years 2013 and 2014. 

(2) ADMINISTRATION.—The funds made available under 

paragraph (1) shall be administered in the same manner as 

funds made available for the tribal transportation program 

under section 202 of title 23, United States Code, except that— 

(A) the funds made available for the program shall remain available until September 30 of the third fiscal year 

after the year appropriated; and 

(B) the Federal share of the cost of a project shall be 

100 percent. 


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Subtitle B—Performance Management 

SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING. 

(a) IN GENERAL.—Section 134 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 134. Metropolitan transportation planning 

‘‘(a) POLICY.—It is in the national interest— 

‘‘(1) to encourage and promote the safe and efficient management, operation, and development of surface transportation 

systems that will serve the mobility needs of people and freight 

and foster economic growth and development within and between States and urbanized areas, while minimizing transportation-related fuel consumption and air pollution through metropolitan and statewide transportation planning processes identified in this chapter; and 

‘‘(2) to encourage the continued improvement and evolution 

of the metropolitan and statewide transportation planning processes by metropolitan planning organizations, State departments of transportation, and public transit operators as guided 

by the planning factors identified in subsection (h) and section 

135(d). 

‘‘(b) DEFINITIONS.—In this section and section 135, the following definitions apply: 

‘‘(1) METROPOLITAN PLANNING AREA.—The term ‘metropolitan planning area’ means the geographic area determined by 

agreement between the metropolitan planning organization for 

the area and the Governor under subsection (e). 

‘‘(2) METROPOLITAN PLANNING ORGANIZATION.—The term 

‘metropolitan planning organization’ means the policy board of 

an organization established as a result of the designation process under subsection (d). 

‘‘(3) NONMETROPOLITAN AREA.—The term ‘nonmetropolitan 

area’ means a geographic area outside designated metropolitan 

planning areas. 

‘‘(4) NONMETROPOLITAN LOCAL OFFICIAL.—The term ‘nonmetropolitan local official’ means elected and appointed officials of general purpose local government in a nonmetropolitan 

area with responsibility for transportation. 

‘‘(5) REGIONAL TRANSPORTATION PLANNING ORGANIZA- TION.—The term ‘regional transportation planning organization’ means a policy board of an organization established as the 

result of a designation under section 135(m). 

‘‘(6) TIP.—The term ‘TIP’ means a transportation improvement program developed by a metropolitan planning organization under subsection (j). 

‘‘(7) URBANIZED AREA.—The term ‘urbanized area’ means a 

geographic area with a population of 50,000 or more, as determined by the Bureau of the Census. 

‘‘(c) GENERAL REQUIREMENTS.— 

‘‘(1) DEVELOPMENT OF LONG-RANGE PLANS AND TIPS.—To 

accomplish the objectives in subsection (a), metropolitan planning organizations designated under subsection (d), in cooperation with the State and public transportation operators, shall 


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develop long-range transportation plans and transportation improvement programs through a performance-driven, outcomebased approach to planning for metropolitan areas of the State. 

‘‘(2) CONTENTS.—The plans and TIPs for each metropolitan 

area shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways and bicycle transportation facilities) that will function as an intermodal transportation system for the metropolitan planning area and as an integral part of an intermodal transportation system for the State 

and the United States. 

‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing the plans and TIPs shall provide for consideration of all 

modes of transportation and shall be continuing, cooperative, 

and comprehensive to the degree appropriate, based on the complexity of the transportation problems to be addressed. 

‘‘(d) DESIGNATION OF METROPOLITAN PLANNING ORGANIZATIONS.— 

‘‘(1) IN GENERAL.—To carry out the transportation planning 

process required by this section, a metropolitan planning organization shall be designated for each urbanized area with a 

population of more than 50,000 individuals— 

‘‘(A) by agreement between the Governor and units of 

general purpose local government that together represent at 

least 75 percent of the affected population (including the 

largest incorporated city (based on population) as determined by the Bureau of the Census); or 

‘‘(B) in accordance with procedures established by applicable State or local law. 

‘‘(2) STRUCTURE.—Not later than 2 years after the date of 

enactment of MAP-21, each metropolitan planning organization 

that serves an area designated as a transportation management 

area shall consist of— 

‘‘(A) local elected officials; 

‘‘(B) officials of public agencies that administer or operate major modes of transportation in the metropolitan area, 

including representation by providers of public transportation; and 

‘‘(C) appropriate State officials. 

‘‘(3) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing 

in this subsection shall be construed to interfere with the authority, under any State law in effect on December 18, 1991, of 

a public agency with multimodal transportation responsibilities— 

‘‘(A) to develop the plans and TIPs for adoption by a 

metropolitan planning organization; and 

‘‘(B) to develop long-range capital plans, coordinate 

transit services and projects, and carry out other activities 

pursuant to State law. 

‘‘(4) CONTINUING DESIGNATION.—A designation of a metropolitan planning organization under this subsection or any 

other provision of law shall remain in effect until the metropolitan planning organization is redesignated under paragraph (5). 

‘‘(5) REDESIGNATION PROCEDURES.— 


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‘‘(A) IN GENERAL.—A metropolitan planning organization may be redesignated by agreement between the Governor and units of general purpose local government that 

together represent at least 75 percent of the existing planning area population (including the largest incorporated 

city (based on population) as determined by the Bureau of 

the Census) as appropriate to carry out this section. 

‘‘(B) RESTRUCTURING.—A metropolitan planning organization may be restructured to meet the requirements of 

paragraph (2) without undertaking a redesignation. 

‘‘(6) DESIGNATION OF MORE THAN 1 METROPOLITAN PLANNING ORGANIZATION.—More than 1 metropolitan planning organization may be designated within an existing metropolitan 

planning area only if the Governor and the existing metropolitan planning organization determine that the size and complexity of the existing metropolitan planning area make designation of more than 1 metropolitan planning organization for 

the area appropriate. 

‘‘(e) METROPOLITAN PLANNING AREA BOUNDARIES.— 

‘‘(1) IN GENERAL.—For the purposes of this section, the 

boundaries of a metropolitan planning area shall be determined 

by agreement between the metropolitan planning organization 

and the Governor. 

‘‘(2) INCLUDED AREA.—Each metropolitan planning area— 

‘‘(A) shall encompass at least the existing urbanized 

area and the contiguous area expected to become urbanized 

within a 20-year forecast period for the transportation plan; 

and 

‘‘(B) may encompass the entire metropolitan statistical 

area or consolidated metropolitan statistical area, as defined by the Bureau of the Census. 

‘‘(3) IDENTIFICATION OF NEW URBANIZED AREAS WITHIN EXISTING PLANNING AREA BOUNDARIES.—The designation by the 

Bureau of the Census of new urbanized areas within an existing 

metropolitan planning area shall not require the redesignation 

of the existing metropolitan planning organization. 

‘‘(4) EXISTING METROPOLITAN PLANNING AREAS IN NONATTAINMENT.— 

‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), except as provided in subparagraph (B), in the case of an urbanized area designated as a nonattainment area for ozone 

or carbon monoxide under the Clean Air Act (42 U.S.C. 

7401 et seq.) as of the date of enactment of the SAFETEA– 

LU, the boundaries of the metropolitan planning area in 

existence as of such date of enactment shall be retained. 

‘‘(B) EXCEPTION.—The boundaries described in subparagraph (A) may be adjusted by agreement of the Governor and affected metropolitan planning organizations in 

the manner described in subsection (d)(5). 

‘‘(5) NEW METROPOLITAN PLANNING AREAS IN NONATTAINMENT.—In the case of an urbanized area designated after the 

date of enactment of the SAFETEA–LU, as a nonattainment 

area for ozone or carbon monoxide, the boundaries of the metropolitan planning area— 


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‘‘(A) shall be established in the manner described in 

subsection (d)(1); 

‘‘(B) shall encompass the areas described in paragraph 

(2)(A); 

‘‘(C) may encompass the areas described in paragraph 

(2)(B); and 

‘‘(D) may address any nonattainment area identified 

under the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone 

or carbon monoxide. 

‘‘(f) COORDINATION IN MULTISTATE AREAS.— ‘‘(1) IN GENERAL.—The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area. 

‘‘(2) INTERSTATE COMPACTS.—The consent of Congress is 

granted to any 2 or more States— 

‘‘(A) to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative efforts and mutual assistance in support of activities authorized under this section as the activities pertain to interstate 

areas and localities within the States; and 

‘‘(B) to establish such agencies, joint or otherwise, as 

the States may determine desirable for making the agreements and compacts effective. 

‘‘(3) RESERVATION OF RIGHTS.—The right to alter, amend, 

or repeal interstate compacts entered into under this subsection 

is expressly reserved. 

‘‘(g) MPO CONSULTATION IN PLAN AND TIP COORDINATION.— 

‘‘(1) NONATTAINMENT AREAS.—If more than 1 metropolitan 

planning organization has authority within a metropolitan area 

or an area which is designated as a nonattainment area for 

ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 

7401 et seq.), each metropolitan planning organization shall 

consult with the other metropolitan planning organizations designated for such area and the State in the coordination of plans 

and TIPs required by this section. 

‘‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MUL- TIPLE MPOS.—If a transportation improvement, funded from the 

Highway Trust Fund or authorized under chapter 53 of title 49, 

is located within the boundaries of more than 1 metropolitan 

planning area, the metropolitan planning organizations shall 

coordinate plans and TIPs regarding the transportation improvement. 

‘‘(3) RELATIONSHIP WITH OTHER PLANNING OFFICIALS.— 

‘‘(A) IN GENERAL.—The Secretary shall encourage each 

metropolitan planning organization to consult with officials 

responsible for other types of planning activities that are affected by transportation in the area (including State and 

local planned growth, economic development, environmental protection, airport operations, and freight movements) or to coordinate its planning process, to the maximum extent practicable, with such planning activities. 

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oped with due consideration of other related planning activities within the metropolitan area, and the process shall 

provide for the design and delivery of transportation services within the metropolitan area that are provided by— 

‘‘(i) recipients of assistance under chapter 53 of 

title 49; 

‘‘(ii) governmental agencies and nonprofit organizations (including representatives of the agencies and 

organizations) that receive Federal assistance from a 

source other than the Department of Transportation to 

provide nonemergency transportation services; and 

‘‘(iii) recipients of assistance under section 204. 

‘‘(h) SCOPE OF PLANNING PROCESS.— 

‘‘(1) IN GENERAL.—The metropolitan planning process for a 

metropolitan planning area under this section shall provide for 

consideration of projects and strategies that will— 

‘‘(A) support the economic vitality of the metropolitan 

area, especially by enabling global competitiveness, productivity, and efficiency; 

‘‘(B) increase the safety of the transportation system for 

motorized and nonmotorized users; 

‘‘(C) increase the security of the transportation system 

for motorized and nonmotorized users; 

‘‘(D) increase the accessibility and mobility of people 

and for freight; 

‘‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote 

consistency between transportation improvements and State 

and local planned growth and economic development patterns; 

‘‘(F) enhance the integration and connectivity of the 

transportation system, across and between modes, for people and freight; 

‘‘(G) promote efficient system management and operation; and 

‘‘(H) emphasize the preservation of the existing transportation system. 

‘‘(2) PERFORMANCE-BASED APPROACH.— ‘‘(A) IN GENERAL.—The metropolitan transportation 

planning process shall provide for the establishment and 

use of a performance-based approach to transportation decisionmaking to support the national goals described in section 150(b) of this title and in section 5301(c) of title 49. 

‘‘(B) PERFORMANCE TARGETS.— 

‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TARGETS.— 

‘‘(I) IN GENERAL.—Each metropolitan planning 

organization shall establish performance targets 

that address the performance measures described 

in section 150(c), where applicable, to use in tracking progress towards attainment of critical outcomes for the region of the metropolitan planning 

organization. 

‘‘(II) COORDINATION.—Selection of performance 

targets by a metropolitan planning organization 


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shall be coordinated with the relevant State to ensure consistency, to the maximum extent practicable. 

‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TARGETS.—Selection of performance targets by a metropolitan planning organization shall be coordinated, to the 

maximum extent practicable, with providers of public 

transportation to ensure consistency with sections 

5326(c) and 5329(d) of title 49. 

‘‘(C) TIMING.—Each metropolitan planning organization shall establish the performance targets under subparagraph (B) not later than 180 days after the date on which 

the relevant State or provider of public transportation establishes the performance targets. 

‘‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED

PLANS.—A metropolitan planning organization shall integrate in the metropolitan transportation planning process, 

directly or by reference, the goals, objectives, performance 

measures, and targets described in other State transportation plans and transportation processes, as well as any 

plans developed under chapter 53 of title 49 by providers 

of public transportation, required as part of a performancebased program. 

‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to consider any factor specified in paragraphs (1) and (2) shall not be 

reviewable by any court under this title or chapter 53 of title 

49, subchapter II of chapter 5 of title 5, or chapter 7 of title 5 

in any matter affecting a transportation plan, a TIP, a project 

or strategy, or the certification of a planning process. 

‘‘(i) DEVELOPMENT OF TRANSPORTATION PLAN.— 

‘‘(1) REQUIREMENTS.— 

‘‘(A) IN GENERAL.—Each metropolitan planning organization shall prepare and update a transportation plan for 

its metropolitan planning area in accordance with the requirements of this subsection. 

‘‘(B) FREQUENCY.— 

‘‘(i) IN GENERAL.—The metropolitan planning organization shall prepare and update such plan every 4 

years (or more frequently, if the metropolitan planning 

organization elects to update more frequently) in the 

case of each of the following: 

‘‘(I) Any area designated as nonattainment, as 

defined in section 107(d) of the Clean Air Act (42 

U.S.C. 7407(d)). 

‘‘(II) Any area that was nonattainment and 

subsequently designated to attainment in accordance with section 107(d)(3) of that Act (42 U.S.C. 

7407(d)(3)) and that is subject to a maintenance 

plan under section 175A of that Act (42 U.S.C. 

7505a). 

‘‘(ii) OTHER AREAS.—In the case of any other area 

required to have a transportation plan in accordance 

with the requirements of this subsection, the metropolitan planning organization shall prepare and update 


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such plan every 5 years unless the metropolitan planning organization elects to update more frequently. 

‘‘(2) TRANSPORTATION PLAN.—A transportation plan under 

this section shall be in a form that the Secretary determines to 

be appropriate and shall contain, at a minimum, the following: 

‘‘(A) IDENTIFICATION OF TRANSPORTATION FACILITIES.— ‘‘(i) IN GENERAL.—An identification of transportation facilities (including major roadways, transit, 

multimodal and intermodal facilities, nonmotorized 

transportation facilities, and intermodal connectors) 

that should function as an integrated metropolitan 

transportation system, giving emphasis to those facilities that serve important national and regional transportation functions. 

‘‘(ii) FACTORS.—In formulating the transportation 

plan, the metropolitan planning organization shall 

consider factors described in subsection (h) as the factors relate to a 20-year forecast period. 

‘‘(B) PERFORMANCE MEASURES AND TARGETS.—A description of the performance measures and performance targets used in assessing the performance of the transportation 

system in accordance with subsection (h)(2). 

‘‘(C) SYSTEM PERFORMANCE REPORT.—A system performance report and subsequent updates evaluating the 

condition and performance of the transportation system 

with respect to the performance targets described in subsection (h)(2), including— 

‘‘(i) progress achieved by the metropolitan planning 

organization in meeting the performance targets in 

comparison with system performance recorded in previous reports; and 

‘‘(ii) for metropolitan planning organizations that 

voluntarily elect to develop multiple scenarios, an analysis of how the preferred scenario has improved the 

conditions and performance of the transportation system and how changes in local policies and investments 

have impacted the costs necessary to achieve the identified performance targets. 

‘‘(D) MITIGATION ACTIVITIES.— ‘‘(i) IN GENERAL.—A long-range transportation 

plan shall include a discussion of types of potential environmental mitigation activities and potential areas to 

carry out these activities, including activities that may 

have the greatest potential to restore and maintain the 

environmental functions affected by the plan. 

‘‘(ii) CONSULTATION.—The discussion shall be developed in consultation with Federal, State, and tribal 

wildlife, land management, and regulatory agencies. 

‘‘(E) FINANCIAL PLAN.— ‘‘(i) IN GENERAL.—A financial plan that— 

‘‘(I) demonstrates how the adopted transportation plan can be implemented; 

‘‘(II) indicates resources from public and private sources that are reasonably expected to be 

made available to carry out the plan; and 


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‘‘(III) recommends any additional financing 

strategies for needed projects and programs. 

‘‘(ii) INCLUSIONS.—The financial plan may include, 

for illustrative purposes, additional projects that would 

be included in the adopted transportation plan if reasonable additional resources beyond those identified in 

the financial plan were available. 

‘‘(iii) COOPERATIVE DEVELOPMENT.—For the purpose of developing the transportation plan, the metropolitan planning organization, transit operator, and 

State shall cooperatively develop estimates of funds 

that will be available to support plan implementation. 

‘‘(F) OPERATIONAL AND MANAGEMENT STRATEGIES.— 

Operational and management strategies to improve the performance of existing transportation facilities to relieve vehicular congestion and maximize the safety and mobility of 

people and goods. 

‘‘(G) CAPITAL INVESTMENT AND OTHER STRATEGIES.— 

Capital investment and other strategies to preserve the existing and projected future metropolitan transportation infrastructure and provide for multimodal capacity increases 

based on regional priorities and needs. 

‘‘(H) TRANSPORTATION AND TRANSIT ENHANCEMENT ACTIVITIES.—Proposed transportation and transit enhancement activities. 

‘‘(3) COORDINATION WITH CLEAN AIR ACT AGENCIES.—In 

metropolitan areas that are in nonattainment for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), 

the metropolitan planning organization shall coordinate the development of a transportation plan with the process for development of the transportation control measures of the State implementation plan required by that Act. 

‘‘(4) OPTIONAL SCENARIO DEVELOPMENT.— 

‘‘(A) IN GENERAL.—A metropolitan planning organization may, while fitting the needs and complexity of its community, voluntarily elect to develop multiple scenarios for 

consideration as part of the development of the metropolitan transportation plan, in accordance with subparagraph 

(B). 

‘‘(B) RECOMMENDED COMPONENTS.—A metropolitan 

planning organization that chooses to develop multiple scenarios under subparagraph (A) shall be encouraged to consider— 

‘‘(i) potential regional investment strategies for the 

planning horizon; 

‘‘(ii) assumed distribution of population and employment; 

‘‘(iii) a scenario that, to the maximum extent practicable, maintains baseline conditions for the performance measures identified in subsection (h)(2); 

‘‘(iv) a scenario that improves the baseline conditions for as many of the performance measures identified in subsection (h)(2) as possible; 


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‘‘(v) revenue constrained scenarios based on the 

total revenues expected to be available over the forecast 

period of the plan; and 

‘‘(vi) estimated costs and potential revenues available to support each scenario. 

‘‘(C) METRICS.—In addition to the performance measures identified in section 150(c), metropolitan planning organizations may evaluate scenarios developed under this 

paragraph using locally-developed measures. 

‘‘(5) CONSULTATION.— ‘‘(A) IN GENERAL.—In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with State and local agencies responsible for land 

use management, natural resources, environmental protection, conservation, and historic preservation concerning the 

development of a long-range transportation plan. 

‘‘(B) ISSUES.—The consultation shall involve, as appropriate— 

‘‘(i) comparison of transportation plans with State 

conservation plans or maps, if available; or 

‘‘(ii) comparison of transportation plans to inventories of natural or historic resources, if available. 

‘‘(6) PARTICIPATION BY INTERESTED PARTIES.— ‘‘(A) IN GENERAL.—Each metropolitan planning organization shall provide citizens, affected public agencies, representatives of public transportation employees, freight 

shippers, providers of freight transportation services, private providers of transportation, representatives of users of 

public transportation, representatives of users of pedestrian 

walkways and bicycle transportation facilities, representatives of the disabled, and other interested parties with a 

reasonable opportunity to comment on the transportation 

plan. 

‘‘(B) CONTENTS OF PARTICIPATION PLAN.—A participation plan— 

‘‘(i) shall be developed in consultation with all interested parties; and 

‘‘(ii) shall provide that all interested parties have 

reasonable opportunities to comment on the contents of 

the transportation plan. 

‘‘(C) METHODS.—In carrying out subparagraph (A), the 

metropolitan planning organization shall, to the maximum 

extent practicable— 

‘‘(i) hold any public meetings at convenient and accessible locations and times; 

‘‘(ii) employ visualization techniques to describe 

plans; and 

‘‘(iii) make public information available in electronically accessible format and means, such as the 

World Wide Web, as appropriate to afford reasonable 

opportunity for consideration of public information 

under subparagraph (A). 

‘‘(7) PUBLICATION.—A transportation plan involving Federal participation shall be published or otherwise made readily 

available by the metropolitan planning organization for public 


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review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the World 

Wide Web, approved by the metropolitan planning organization 

and submitted for information purposes to the Governor at such 

times and in such manner as the Secretary shall establish. 

‘‘(8) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 

Notwithstanding paragraph (2)(C), a State or metropolitan 

planning organization shall not be required to select any project 

from the illustrative list of additional projects included in the 

financial plan under paragraph (2)(C). 

‘‘(j) METROPOLITAN TIP.— 

‘‘(1) DEVELOPMENT.— 

‘‘(A) IN GENERAL.—In cooperation with the State and 

any affected public transportation operator, the metropolitan planning organization designated for a metropolitan 

area shall develop a TIP for the metropolitan planning 

area that— 

‘‘(i) contains projects consistent with the current 

metropolitan transportation plan; 

‘‘(ii) reflects the investment priorities established in 

the current metropolitan transportation plan; and 

‘‘(iii) once implemented, is designed to make 

progress toward achieving the performance targets established under subsection (h)(2). 

‘‘(B) OPPORTUNITY FOR COMMENT.—In developing the 

TIP, the metropolitan planning organization, in cooperation with the State and any affected public transportation 

operator, shall provide an opportunity for participation by 

interested parties in the development of the program, in accordance with subsection (i)(5). 

‘‘(C) FUNDING ESTIMATES.—For the purpose of developing the TIP, the metropolitan planning organization, 

public transportation agency, and State shall cooperatively 

develop estimates of funds that are reasonably expected to 

be available to support program implementation. 

‘‘(D) UPDATING AND APPROVAL.—The TIP shall be— 

‘‘(i) updated at least once every 4 years; and 

‘‘(ii) approved by the metropolitan planning organization and the Governor. 

‘‘(2) CONTENTS.— 

‘‘(A) PRIORITY LIST.—The TIP shall include a priority 

list of proposed Federally supported projects and strategies 

to be carried out within each 4-year period after the initial 

adoption of the TIP. 

‘‘(B) FINANCIAL PLAN.—The TIP shall include a financial plan that— 

‘‘(i) demonstrates how the TIP can be implemented; 

‘‘(ii) indicates resources from public and private 

sources that are reasonably expected to be available to 

carry out the program; 

‘‘(iii) identifies innovative financing techniques to 

finance projects, programs, and strategies; and 

‘‘(iv) may include, for illustrative purposes, additional projects that would be included in the approved 


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TIP if reasonable additional resources beyond those 

identified in the financial plan were available. 

‘‘(C) DESCRIPTIONS.—Each project in the TIP shall include sufficient descriptive material (such as type of work, 

termini, length, and other similar factors) to identify the 

project or phase of the project. 

‘‘(D) PERFORMANCE TARGET ACHIEVEMENT.—The transportation improvement program shall include, to the maximum extent practicable, a description of the anticipated effect of the transportation improvement program toward 

achieving the performance targets established in the metropolitan transportation plan, linking investment priorities to 

those performance targets. 

‘‘(3) INCLUDED PROJECTS.— 

‘‘(A) PROJECTS UNDER THIS TITLE AND CHAPTER 53 OF

TITLE 49.—A TIP developed under this subsection for a metropolitan area shall include the projects within the area 

that are proposed for funding under chapter 1 of this title 

and chapter 53 of title 49. 

‘‘(B) PROJECTS UNDER CHAPTER 2.— 

‘‘(i) REGIONALLY SIGNIFICANT PROJECTS.—Regionally significant projects proposed for funding under 

chapter 2 shall be identified individually in the transportation improvement program. 

‘‘(ii) OTHER PROJECTS.—Projects proposed for funding under chapter 2 that are not determined to be regionally significant shall be grouped in 1 line item or 

identified individually in the transportation improvement program. 

‘‘(C) CONSISTENCY WITH LONG-RANGE TRANSPORTATION

PLAN.—Each project shall be consistent with the long-range 

transportation plan developed under subsection (i) for the 

area. 

‘‘(D) REQUIREMENT OF ANTICIPATED FULL FUNDING.— 

The program shall include a project, or an identified phase 

of a project, only if full funding can reasonably be anticipated to be available for the project or the identified phase 

within the time period contemplated for completion of the 

project or the identified phase. 

‘‘(4) NOTICE AND COMMENT.—Before approving a TIP, a 

metropolitan planning organization, in cooperation with the 

State and any affected public transportation operator, shall 

provide an opportunity for participation by interested parties in 

the development of the program, in accordance with subsection 

(i)(5). 

‘‘(5) SELECTION OF PROJECTS.— 

‘‘(A) IN GENERAL.—Except as otherwise provided in 

subsection (k)(4) and in addition to the TIP development required under paragraph (1), the selection of Federally funded projects in metropolitan areas shall be carried out, from 

the approved TIP— 

‘‘(i) by— 

‘‘(I) in the case of projects under this title, the 

State; and 


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‘‘(II) in the case of projects under chapter 53 of 

title 49, the designated recipients of public transportation funding; and 

‘‘(ii) in cooperation with the metropolitan planning 

organization. 

‘‘(B) MODIFICATIONS TO PROJECT PRIORITY.—Notwithstanding any other provision of law, action by the Secretary 

shall not be required to advance a project included in the 

approved TIP in place of another project in the program. 

‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— ‘‘(A) NO REQUIRED SELECTION.—Notwithstanding paragraph (2)(B)(iv), a State or metropolitan planning organization shall not be required to select any project from the 

illustrative list of additional projects included in the financial plan under paragraph (2)(B)(iv). 

‘‘(B) REQUIRED ACTION BY THE SECRETARY.—Action by 

the Secretary shall be required for a State or metropolitan 

planning organization to select any project from the illustrative list of additional projects included in the financial 

plan under paragraph (2)(B)(iv) for inclusion in an approved TIP. 

‘‘(7) PUBLICATION.— ‘‘(A) PUBLICATION OF TIPS.—A TIP involving Federal 

participation shall be published or otherwise made readily 

available by the metropolitan planning organization for 

public review. 

‘‘(B) PUBLICATION OF ANNUAL LISTINGS OF PROJECTS.— ‘‘(i) IN GENERAL.—An annual listing of projects, including investments in pedestrian walkways and bicycle transportation facilities, for which Federal funds 

have been obligated in the preceding year shall be published or otherwise made available by the cooperative 

effort of the State, transit operator, and metropolitan 

planning organization for public review. 

‘‘(ii) REQUIREMENT.—The listing shall be consistent 

with the categories identified in the TIP. 

‘‘(k) TRANSPORTATION MANAGEMENT AREAS.— ‘‘(1) IDENTIFICATION AND DESIGNATION.— ‘‘(A) REQUIRED IDENTIFICATION.—The Secretary shall 

identify as a transportation management area each urbanized area (as defined by the Bureau of the Census) with a 

population of over 200,000 individuals. 

‘‘(B) DESIGNATIONS ON REQUEST.—The Secretary shall 

designate any additional area as a transportation management area on the request of the Governor and the metropolitan planning organization designated for the area. 

‘‘(2) TRANSPORTATION PLANS.—In a transportation management area, transportation plans shall be based on a continuing 

and comprehensive transportation planning process carried out 

by the metropolitan planning organization in cooperation with 

the State and public transportation operators. 

‘‘(3) CONGESTION MANAGEMENT PROCESS.— ‘‘(A) IN GENERAL.—Within a metropolitan planning 

area serving a transportation management area, the transportation planning process under this section shall address 


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congestion management through a process that provides for 

effective management and operation, based on a cooperatively developed and implemented metropolitan-wide strategy, of new and existing transportation facilities eligible for 

funding under this title and chapter 53 of title 49 through 

the use of travel demand reduction and operational management strategies. 

‘‘(B) SCHEDULE.—The Secretary shall establish an appropriate phase-in schedule for compliance with the requirements of this section but no sooner than 1 year after 

the identification of a transportation management area. 

‘‘(4) SELECTION OF PROJECTS.— 

‘‘(A) IN GENERAL.—All Federally funded projects carried out within the boundaries of a metropolitan planning 

area serving a transportation management area under this 

title (excluding projects carried out on the National Highway System) or under chapter 53 of title 49 shall be selected for implementation from the approved TIP by the 

metropolitan planning organization designated for the area 

in consultation with the State and any affected public 

transportation operator. 

‘‘(B) NATIONAL HIGHWAY SYSTEM PROJECTS.—Projects 

carried out within the boundaries of a metropolitan planning area serving a transportation management area on 

the National Highway System shall be selected for implementation from the approved TIP by the State in cooperation with the metropolitan planning organization designated for the area. 

‘‘(5) CERTIFICATION.— 

‘‘(A) IN GENERAL.—The Secretary shall— 

‘‘(i) ensure that the metropolitan planning process 

of a metropolitan planning organization serving a 

transportation management area is being carried out 

in accordance with applicable provisions of Federal 

law; and 

‘‘(ii) subject to subparagraph (B), certify, not less 

often than once every 4 years, that the requirements of 

this paragraph are met with respect to the metropolitan planning process. 

‘‘(B) REQUIREMENTS FOR CERTIFICATION.—The Secretary may make the certification under subparagraph (A) 

if— 

‘‘(i) the transportation planning process complies 

with the requirements of this section and other applicable requirements of Federal law; and 

‘‘(ii) there is a TIP for the metropolitan planning 

area that has been approved by the metropolitan planning organization and the Governor. 

‘‘(C) EFFECT OF FAILURE TO CERTIFY.— ‘‘(i) WITHHOLDING OF PROJECT FUNDS.—If a metropolitan planning process of a metropolitan planning 

organization serving a transportation management 

area is not certified, the Secretary may withhold up to 

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tion for projects funded under this title and chapter 53 

of title 49. 

‘‘(ii) RESTORATION OF WITHHELD FUNDS.—The 

withheld funds shall be restored to the metropolitan 

planning area at such time as the metropolitan planning process is certified by the Secretary. 

‘‘(D) REVIEW OF CERTIFICATION.—In making certification determinations under this paragraph, the Secretary 

shall provide for public involvement appropriate to the metropolitan area under review. 

‘‘(l) REPORT ON PERFORMANCE-BASED PLANNING PROCESSES.— ‘‘(1) IN GENERAL.—The Secretary shall submit to Congress 

a report on the effectiveness of the performance-based planning 

processes of metropolitan planning organizations under this 

section, taking into consideration the requirements of this subsection 

‘‘(2) REPORT.—Not later than 5 years after the date of enactment of the MAP–21, the Secretary shall submit to Congress 

a report evaluating— 

‘‘(A) the overall effectiveness of performance-based 

planning as a tool for guiding transportation investments; 

‘‘(B) the effectiveness of the performance-based planning process of each metropolitan planning organization 

under this section; 

‘‘(C) the extent to which metropolitan planning organizations have achieved, or are currently making substantial 

progress toward achieving, the performance targets specified under this section and whether metropolitan planning 

organizations are developing meaningful performance targets; and 

‘‘(D) the technical capacity of metropolitan planning organizations that operate within a metropolitan planning 

area of less than 200,000 and their ability to carry out the 

requirements of this section. 

‘‘(3) PUBLICATION.—The report under paragraph (2) shall 

be published or otherwise made available in electronically accessible formats and means, including on the Internet. 

‘‘(m) ABBREVIATED PLANS FOR CERTAIN AREAS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), in the case of 

a metropolitan area not designated as a transportation management area under this section, the Secretary may provide for the 

development of an abbreviated transportation plan and TIP for 

the metropolitan planning area that the Secretary determines is 

appropriate to achieve the purposes of this section, taking into 

account the complexity of transportation problems in the area. 

‘‘(2) NONATTAINMENT AREAS.—The Secretary may not permit abbreviated plans or TIPs for a metropolitan area that is 

in nonattainment for ozone or carbon monoxide under the Clean 

Air Act (42 U.S.C. 7401 et seq.). 

‘‘(n) ADDITIONAL REQUIREMENTS FOR CERTAIN NONATTAINMENT

AREAS.— ‘‘(1) IN GENERAL.—Notwithstanding any other provisions of 

this title or chapter 53 of title, for transportation management 

areas classified as nonattainment for ozone or carbon monoxide 

pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 


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funds may not be advanced in such area for any highway 

project that will result in a significant increase in the carrying 

capacity for single-occupant vehicles unless the project is addressed through a congestion management process. 

‘‘(2) APPLICABILITY.—This subsection applies to a nonattainment area within the metropolitan planning area boundaries determined under subsection (e). 

‘‘(o) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in 

this section shall be construed to confer on a metropolitan planning 

organization the authority to impose legal requirements on any 

transportation facility, provider, or project not eligible under this 

title or chapter 53 of title 49. 

‘‘(p) FUNDING.—Funds set aside under section 104(f) of this title 

or section 5305(g) of title 49 shall be available to carry out this section. 

‘‘(q) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since 

plans and TIPs described in this section are subject to a reasonable 

opportunity for public comment, since individual projects included 

in plans and TIPs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since decisions by the Secretary concerning plans and TIPs described in this 

section have not been reviewed under that Act as of January 1, 

1997, any decision by the Secretary concerning a plan or TIP described in this section shall not be considered to be a Federal action 

subject to review under that Act.’’. 

(b) STUDY ON METROPOLITAN PLANNING SCENARIO DEVELOPMENT.— 

(1) IN GENERAL.—The Secretary shall evaluate the costs 

and benefits associated with metropolitan planning organizations developing multiple scenarios for consideration as a part 

of the development of their metropolitan transportation plan. 

(2) INCLUSIONS.—The evaluation shall include an analysis 

of the technical and financial capacity of the metropolitan planning organization needed to develop scenarios described in 

paragraph (1). 

SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION 

PLANNING. 

(a) IN GENERAL.—Section 135 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 135. Statewide and nonmetropolitan transportation planning 

‘‘(a) GENERAL REQUIREMENTS.— 

‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.—Subject to 

section 134, to accomplish the objectives stated in section 

134(a), each State shall develop a statewide transportation plan 

and a statewide transportation improvement program for all 

areas of the State. 

‘‘(2) CONTENTS.—The statewide transportation plan and the 

transportation improvement program developed for each State 

shall provide for the development and integrated management 

and operation of transportation systems and facilities (including accessible pedestrian walkways and bicycle transportation 

facilities) that will function as an intermodal transportation 


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system for the State and an integral part of an intermodal 

transportation system for the United States. 

‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing the statewide plan and the transportation improvement 

program shall provide for consideration of all modes of transportation and the policies stated in section 134(a) and shall be 

continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation problems 

to be addressed. 

‘‘(b) COORDINATION WITH METROPOLITAN PLANNING; STATE IM- PLEMENTATION PLAN.—A State shall— 

‘‘(1) coordinate planning carried out under this section with 

the transportation planning activities carried out under section 

134 for metropolitan areas of the State and with statewide 

trade and economic development planning activities and related 

multistate planning efforts; and 

‘‘(2) develop the transportation portion of the State implementation plan as required by the Clean Air Act (42 U.S.C. 

7401 et seq.). 

‘‘(c) INTERSTATE AGREEMENTS.— 

‘‘(1) IN GENERAL.—Two or more States may enter into 

agreements or compacts, not in conflict with any law of the 

United States, for cooperative efforts and mutual assistance in 

support of activities authorized under this section related to 

interstate areas and localities in the States and establishing authorities the States consider desirable for making the agreements and compacts effective. 

‘‘(2) RESERVATION OF RIGHTS.—The right to alter, amend, 

or repeal interstate compacts entered into under this subsection 

is expressly reserved. 

‘‘(d) SCOPE OF PLANNING PROCESS.— ‘‘(1) IN GENERAL.—Each State shall carry out a statewide 

transportation planning process that provides for consideration 

and implementation of projects, strategies, and services that 

will— 

‘‘(A) support the economic vitality of the United States, 

the States, nonmetropolitan areas, and metropolitan areas, 

especially by enabling global competitiveness, productivity, 

and efficiency; 

‘‘(B) increase the safety of the transportation system for 

motorized and nonmotorized users; 

‘‘(C) increase the security of the transportation system 

for motorized and nonmotorized users; 

‘‘(D) increase the accessibility and mobility of people 

and freight; 

‘‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote 

consistency between transportation improvements and State 

and local planned growth and economic development patterns; 

‘‘(F) enhance the integration and connectivity of the 

transportation system, across and between modes throughout the State, for people and freight; 

‘‘(G) promote efficient system management and operation; and 


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‘‘(H) emphasize the preservation of the existing transportation system. 

‘‘(2) PERFORMANCE-BASED APPROACH.— ‘‘(A) IN GENERAL.—The statewide transportation planning process shall provide for the establishment and use of 

a performance-based approach to transportation decisionmaking to support the national goals described in section 

150(b) of this title and in section 5301(c) of title 49. 

‘‘(B) PERFORMANCE TARGETS.— ‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TAR- GETS.— ‘‘(I) IN GENERAL.—Each State shall establish 

performance targets that address the performance 

measures described in section 150(c), where applicable, to use in tracking progress towards attainment of critical outcomes for the State. 

‘‘(II) COORDINATION.—Selection of performance 

targets by a State shall be coordinated with the 

relevant metropolitan planning organizations to 

ensure consistency, to the maximum extent practicable. 

‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TAR- GETS.—In urbanized areas not represented by a metropolitan planning organization, selection of performance 

targets by a State shall be coordinated, to the maximum extent practicable, with providers of public 

transportation to ensure consistency with sections 

5326(c) and 5329(d) of title 49. 

‘‘(C) INTEGRATION OF OTHER PERFORMANCE-BASED

PLANS.—A State shall integrate into the statewide transportation planning process, directly or by reference, the goals, 

objectives, performance measures, and targets described in 

this paragraph, in other State transportation plans and 

transportation processes, as well as any plans developed 

pursuant to chapter 53 of title 49 by providers of public 

transportation in urbanized areas not represented by a metropolitan planning organization required as part of a performance-based program. 

‘‘(D) USE OF PERFORMANCE MEASURES AND TARGETS.— The performance measures and targets established under 

this paragraph shall be considered by a State when developing policies, programs, and investment priorities reflected 

in the statewide transportation plan and statewide transportation improvement program. 

‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to take 

into consideration the factors specified in paragraphs (1) and 

(2) shall not be subject to review by any court under this title, 

chapter 53 of title 49, subchapter II of chapter 5 of title 5, or 

chapter 7 of title 5 in any matter affecting a statewide transportation plan, a statewide transportation improvement program, 

a project or strategy, or the certification of a planning process. 

‘‘(e) ADDITIONAL REQUIREMENTS.—In carrying out planning 

under this section, each State shall, at a minimum— 

‘‘(1) with respect to nonmetropolitan areas, cooperate with 

affected local officials with responsibility for transportation or, 


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if applicable, through regional transportation planning organizations described in subsection (m); 

‘‘(2) consider the concerns of Indian tribal governments and 

Federal land management agencies that have jurisdiction over 

land within the boundaries of the State; and 

‘‘(3) consider coordination of transportation plans, the 

transportation improvement program, and planning activities 

with related planning activities being carried out outside of 

metropolitan planning areas and between States. 

‘‘(f) LONG-RANGE STATEWIDE TRANSPORTATION PLAN.— ‘‘(1) DEVELOPMENT.—Each State shall develop a long-range 

statewide transportation plan, with a minimum 20-year forecast period for all areas of the State, that provides for the development and implementation of the intermodal transportation 

system of the State. 

‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

‘‘(A) METROPOLITAN AREAS.—The statewide transportation plan shall be developed for each metropolitan area 

in the State in cooperation with the metropolitan planning 

organization designated for the metropolitan area under 

section 134. 

‘‘(B) NONMETROPOLITAN AREAS.— ‘‘(i) IN GENERAL.—With respect to nonmetropolitan 

areas, the statewide transportation plan shall be developed in cooperation with affected nonmetropolitan officials with responsibility for transportation or, if applicable, through regional transportation planning organizations described in subsection (m). 

‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 

review or approve the consultation process in each 

State. 

‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 

of the State under the jurisdiction of an Indian tribal government, the statewide transportation plan shall be developed in consultation with the tribal government and the 

Secretary of the Interior. 

‘‘(D) CONSULTATION, COMPARISON, AND CONSIDER- ATION.— ‘‘(i) IN GENERAL.—The long-range transportation 

plan shall be developed, as appropriate, in consultation 

with State, tribal, and local agencies responsible for 

land use management, natural resources, environmental protection, conservation, and historic preservation. 

‘‘(ii) COMPARISON AND CONSIDERATION.—Consultation under clause (i) shall involve comparison of transportation plans to State and tribal conservation plans 

or maps, if available, and comparison of transportation 

plans to inventories of natural or historic resources, if 

available. 

‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— ‘‘(A) IN GENERAL.—In developing the statewide transportation plan, the State shall provide to— 

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ganizations described in subsection (m), an opportunity 

to participate in accordance with subparagraph (B)(i); 

and 

‘‘(ii) citizens, affected public agencies, representatives of public transportation employees, freight shippers, private providers of transportation, representatives of users of public transportation, representatives 

of users of pedestrian walkways and bicycle transportation facilities, representatives of the disabled, providers of freight transportation services, and other interested parties a reasonable opportunity to comment 

on the proposed plan. 

‘‘(B) METHODS.—In carrying out subparagraph (A), the 

State shall, to the maximum extent practicable— 

‘‘(i) develop and document a consultative process to 

carry out subparagraph (A)(i) that is separate and discrete from the public involvement process developed 

under clause (ii); 

‘‘(ii) hold any public meetings at convenient and 

accessible locations and times; 

‘‘(iii) employ visualization techniques to describe 

plans; and 

‘‘(iv) make public information available in electronically accessible format and means, such as the 

World Wide Web, as appropriate to afford reasonable 

opportunity for consideration of public information 

under subparagraph (A). 

‘‘(4) MITIGATION ACTIVITIES.— ‘‘(A) IN GENERAL.—A long-range transportation plan 

shall include a discussion of potential environmental mitigation activities and potential areas to carry out these activities, including activities that may have the greatest potential to restore and maintain the environmental functions 

affected by the plan. 

‘‘(B) CONSULTATION.—The discussion shall be developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies. 

‘‘(5) FINANCIAL PLAN.—The statewide transportation plan 

may include— 

‘‘(A) a financial plan that— 

‘‘(i) demonstrates how the adopted statewide transportation plan can be implemented; 

‘‘(ii) indicates resources from public and private 

sources that are reasonably expected to be made available to carry out the plan; and 

‘‘(iii) recommends any additional financing strategies for needed projects and programs; and 

‘‘(B) for illustrative purposes, additional projects that 

would be included in the adopted statewide transportation 

plan if reasonable additional resources beyond those identified in the financial plan were available. 

‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.—A 

State shall not be required to select any project from the illustrative list of additional projects included in the financial plan 

described in paragraph (5). 


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‘‘(7) PERFORMANCE-BASED APPROACH.—The statewide transportation plan should include— 

‘‘(A) a description of the performance measures and 

performance targets used in assessing the performance of 

the transportation system in accordance with subsection 

(d)(2); and 

‘‘(B) a system performance report and subsequent updates evaluating the condition and performance of the 

transportation system with respect to the performance targets described in subsection (d)(2), including progress 

achieved by the metropolitan planning organization in 

meeting the performance targets in comparison with system 

performance recorded in previous reports; 

‘‘(8) EXISTING SYSTEM.—The statewide transportation plan 

should include capital, operations and management strategies, 

investments, procedures, and other measures to ensure the preservation and most efficient use of the existing transportation 

system. 

‘‘(9) PUBLICATION OF LONG-RANGE TRANSPORTATION

PLANS.—Each long-range transportation plan prepared by a 

State shall be published or otherwise made available, including 

(to the maximum extent practicable) in electronically accessible 

formats and means, such as the World Wide Web. 

‘‘(g) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM.— ‘‘(1) DEVELOPMENT.— ‘‘(A) IN GENERAL.—Each State shall develop a statewide transportation improvement program for all areas of 

the State. 

‘‘(B) DURATION AND UPDATING OF PROGRAM.—Each program developed under subparagraph (A) shall cover a period of 4 years and shall be updated every 4 years or more 

frequently if the Governor of the State elects to update more 

frequently. 

‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

‘‘(A) METROPOLITAN AREAS.—With respect to each metropolitan area in the State, the program shall be developed 

in cooperation with the metropolitan planning organization 

designated for the metropolitan area under section 134. 

‘‘(B) NONMETROPOLITAN AREAS.— ‘‘(i) IN GENERAL.—With respect to each nonmetropolitan area in the State, the program shall be developed in consultation with affected nonmetropolitan 

local officials with responsibility for transportation or, 

if applicable, through regional transportation planning 

organizations described in subsection (m). 

‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 

review or approve the specific consultation process in 

the State. 

‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 

of the State under the jurisdiction of an Indian tribal government, the program shall be developed in consultation 

with the tribal government and the Secretary of the Interior. 

‘‘(3) PARTICIPATION BY INTERESTED PARTIES.—In developing 

the program, the State shall provide citizens, affected public 


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agencies, representatives of public transportation employees, 

freight shippers, private providers of transportation, providers 

of freight transportation services, representatives of users of 

public transportation, representatives of users of pedestrian 

walkways and bicycle transportation facilities, representatives 

of the disabled, and other interested parties with a reasonable 

opportunity to comment on the proposed program. 

‘‘(4) PERFORMANCE TARGET ACHIEVEMENT.—A statewide 

transportation improvement program shall include, to the maximum extent practicable, a discussion of the anticipated effect 

of the statewide transportation improvement program toward 

achieving the performance targets established in the statewide 

transportation plan, linking investment priorities to those performance targets. 

‘‘(5) INCLUDED PROJECTS.— 

‘‘(A) IN GENERAL.—A transportation improvement program developed under this subsection for a State shall include Federally supported surface transportation expenditures within the boundaries of the State. 

‘‘(B) LISTING OF PROJECTS.— 

‘‘(i) IN GENERAL.—An annual listing of projects for 

which funds have been obligated for the preceding year 

in each metropolitan planning area shall be published 

or otherwise made available by the cooperative effort of 

the State, transit operator, and the metropolitan planning organization for public review. 

‘‘(ii) FUNDING CATEGORIES.—The listing described 

in clause (i) shall be consistent with the funding categories identified in each metropolitan transportation 

improvement program. 

‘‘(C) PROJECTS UNDER CHAPTER 2.— 

‘‘(i) REGIONALLY SIGNIFICANT PROJECTS.—Regionally significant projects proposed for funding under 

chapter 2 shall be identified individually in the transportation improvement program. 

‘‘(ii) OTHER PROJECTS.—Projects proposed for funding under chapter 2 that are not determined to be regionally significant shall be grouped in 1 line item or 

identified individually in the transportation improvement program. 

‘‘(D) CONSISTENCY WITH STATEWIDE TRANSPORTATION

PLAN.—Each project shall be— 

‘‘(i) consistent with the statewide transportation 

plan developed under this section for the State; 

‘‘(ii) identical to the project or phase of the project 

as described in an approved metropolitan transportation plan; and 

‘‘(iii) in conformance with the applicable State air 

quality implementation plan developed under the 

Clean Air Act (42 U.S.C. 7401 et seq.), if the project is 

carried out in an area designated as a nonattainment 

area for ozone, particulate matter, or carbon monoxide 

under part D of title I of that Act (42 U.S.C. 7501 et 

seq.). 


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‘‘(E) REQUIREMENT OF ANTICIPATED FULL FUNDING.— The transportation improvement program shall include a 

project, or an identified phase of a project, only if full funding can reasonably be anticipated to be available for the 

project within the time period contemplated for completion 

of the project. 

‘‘(F) FINANCIAL PLAN.— ‘‘(i) IN GENERAL.—The transportation improvement 

program may include a financial plan that demonstrates how the approved transportation improvement program can be implemented, indicates resources 

from public and private sources that are reasonably expected to be made available to carry out the transportation improvement program, and recommends any additional financing strategies for needed projects and 

programs. 

‘‘(ii) ADDITIONAL PROJECTS.—The financial plan 

may include, for illustrative purposes, additional 

projects that would be included in the adopted transportation plan if reasonable additional resources beyond those identified in the financial plan were available. 

‘‘(G) SELECTION OF PROJECTS FROM ILLUSTRATIVE

LIST.— ‘‘(i) NO REQUIRED SELECTION.—Notwithstanding 

subparagraph (F), a State shall not be required to select any project from the illustrative list of additional 

projects included in the financial plan under subparagraph (F). 

‘‘(ii) REQUIRED ACTION BY THE SECRETARY.—Action 

by the Secretary shall be required for a State to select 

any project from the illustrative list of additional 

projects included in the financial plan under subparagraph (F) for inclusion in an approved transportation 

improvement program. 

‘‘(H) PRIORITIES.—The transportation improvement 

program shall reflect the priorities for programming and 

expenditures of funds, including transportation enhancement activities, required by this title and chapter 53 of title 

49. 

‘‘(6) PROJECT SELECTION FOR AREAS OF LESS THAN 50,000

POPULATION.— 

‘‘(A) IN GENERAL.—Projects carried out in areas with 

populations of less than 50,000 individuals shall be selected, from the approved transportation improvement program (excluding projects carried out on the National Highway System and projects carried out under the bridge program or the Interstate maintenance program under this 

title or under sections 5310 and 5311 of title 49), by the 

State in cooperation with the affected nonmetropolitan local 

officials with responsibility for transportation or, if applicable, through regional transportation planning organizations described in subsection (m). 

‘‘(B) OTHER PROJECTS.—Projects carried out in areas 

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tional Highway System or under the bridge program or the 

Interstate maintenance program under this title or under 

sections 5310, 5311, 5316, and 5317 of title 49 shall be selected, from the approved statewide transportation improvement program, by the State in consultation with the affected nonmetropolitan local officials with responsibility for 

transportation. 

‘‘(7) TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL.— 

Every 4 years, a transportation improvement program developed under this subsection shall be reviewed and approved by 

the Secretary if based on a current planning finding. 

‘‘(8) PLANNING FINDING.—A finding shall be made by the 

Secretary at least every 4 years that the transportation planning process through which statewide transportation plans and 

programs are developed is consistent with this section and section 134. 

‘‘(9) MODIFICATIONS TO PROJECT PRIORITY.—Notwithstanding any other provision of law, action by the Secretary 

shall not be required to advance a project included in the approved transportation improvement program in place of another 

project in the program. 

‘‘(h) PERFORMANCE-BASED PLANNING PROCESSES EVALUATION.— 

‘‘(1) IN GENERAL.—The Secretary shall establish criteria to 

evaluate the effectiveness of the performance-based planning 

processes of States, taking into consideration the following: 

‘‘(A) The extent to which the State is making progress 

toward achieving, the performance targets described in subsection (d)(2), taking into account whether the State developed appropriate performance targets. 

‘‘(B) The extent to which the State has made transportation investments that are efficient and cost-effective. 

‘‘(C) The extent to which the State— 

‘‘(i) has developed an investment process that relies 

on public input and awareness to ensure that investments are transparent and accountable; and 

‘‘(ii) provides reports allowing the public to access 

the information being collected in a format that allows 

the public to meaningfully assess the performance of 

the State. 

‘‘(2) REPORT.— 

‘‘(A) IN GENERAL.—Not later than 5 years after the date 

of enactment of the MAP–21, the Secretary shall submit to 

Congress a report evaluating— 

‘‘(i) the overall effectiveness of performance-based 

planning as a tool for guiding transportation investments; and 

‘‘(ii) the effectiveness of the performance-based 

planning process of each State. 

‘‘(B) PUBLICATION.—The report under subparagraph 

(A) shall be published or otherwise made available in electronically accessible formats and means, including on the 

Internet. 


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‘‘(i) FUNDING.—Funds apportioned under section 104(b)(5) of 

this title and set aside under section 5305(g) of title 49 shall be 

available to carry out this section. 

‘‘(j) TREATMENT OF CERTAIN STATE LAWS AS CONGESTION MAN- AGEMENT PROCESSES.—For purposes of this section and section 134, 

and sections 5303 and 5304 of title 49, State laws, rules, or regulations pertaining to congestion management systems or programs 

may constitute the congestion management process under this section and section 134, and sections 5303 and 5304 of title 49, if the 

Secretary finds that the State laws, rules, or regulations are consistent with, and fulfill the intent of, the purposes of this section 

and section 134 and sections 5303 and 5304 of title 49, as appropriate. 

‘‘(k) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since the 

statewide transportation plan and the transportation improvement 

program described in this section are subject to a reasonable opportunity for public comment, since individual projects included in the 

statewide transportation plans and the transportation improvement 

program are subject to review under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since decisions by 

the Secretary concerning statewide transportation plans or the 

transportation improvement program described in this section have 

not been reviewed under that Act as of January 1, 1997, any decision by the Secretary concerning a metropolitan or statewide transportation plan or the transportation improvement program described in this section shall not be considered to be a Federal action 

subject to review under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.). 

‘‘(l) SCHEDULE FOR IMPLEMENTATION.—The Secretary shall 

issue guidance on a schedule for implementation of the changes 

made by this section, taking into consideration the established planning update cycle for States. The Secretary shall not require a State 

to deviate from its established planning update cycle to implement 

changes made by this section. States shall reflect changes made to 

their transportation plan or transportation improvement program 

updates not later than 2 years after the date of issuance of guidance 

by the Secretary under this subsection. 

‘‘(m) DESIGNATION OF REGIONAL TRANSPORTATION PLANNING

ORGANIZATIONS.— ‘‘(1) IN GENERAL.—To carry out the transportation planning 

process required by this section, a State may establish and designate regional transportation planning organizations to enhance the planning, coordination, and implementation of statewide strategic long-range transportation plans and transportation improvement programs, with an emphasis on addressing 

the needs of nonmetropolitan areas of the State. 

‘‘(2) STRUCTURE.—A regional transportation planning organization shall be established as a multijurisdictional organization of nonmetropolitan local officials or their designees who 

volunteer for such organization and representatives of local 

transportation systems who volunteer for such organization. 

‘‘(3) REQUIREMENTS.—A regional transportation planning 

organization shall establish, at a minimum— 

‘‘(A) a policy committee, the majority of which shall 

consist of nonmetropolitan local officials, or their designees, 


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and, as appropriate, additional representatives from the 

State, private business, transportation service providers, 

economic development practitioners, and the public in the 

region; and 

‘‘(B) a fiscal and administrative agent, such as an existing regional planning and development organization, to 

provide professional planning, management, and administrative support. 

‘‘(4) DUTIES.—The duties of a regional transportation planning organization shall include— 

‘‘(A) developing and maintaining, in cooperation with 

the State, regional long-range multimodal transportation 

plans; 

‘‘(B) developing a regional transportation improvement 

program for consideration by the State; 

‘‘(C) fostering the coordination of local planning, land 

use, and economic development plans with State, regional, 

and local transportation plans and programs; 

‘‘(D) providing technical assistance to local officials; 

‘‘(E) participating in national, multistate, and State 

policy and planning development processes to ensure the regional and local input of nonmetropolitan areas; 

‘‘(F) providing a forum for public participation in the 

statewide and regional transportation planning processes; 

‘‘(G) considering and sharing plans and programs with 

neighboring regional transportation planning organizations, metropolitan planning organizations, and, where appropriate, tribal organizations; and 

‘‘(H) conducting other duties, as necessary, to support 

and enhance the statewide planning process under subsection (d). 

‘‘(5) STATES WITHOUT REGIONAL TRANSPORTATION PLANNING

ORGANIZATIONS.—If a State chooses not to establish or designate a regional transportation planning organization, the 

State shall consult with affected nonmetropolitan local officials 

to determine projects that may be of regional significance.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by striking the item relating to section 135 and inserting the following: 

‘‘135. Statewide and nonmetropolitan transportation planning.’’. 

SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT MEASURES. 

(a) IN GENERAL.—Section 150 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 150. National goals and performance management measures 

‘‘(a) DECLARATION OF POLICY.—Performance management will 

transform the Federal-aid highway program and provide a means 

to the most efficient investment of Federal transportation funds by 

refocusing on national transportation goals, increasing the accountability and transparency of the Federal-aid highway program, and 

improving project decisionmaking through performance-based planning and programming. 


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‘‘(b) NATIONAL GOALS.—It is in the interest of the United States 

to focus the Federal-aid highway program on the following national 

goals: 

‘‘(1) SAFETY.—To achieve a significant reduction in traffic 

fatalities and serious injuries on all public roads. 

‘‘(2) INFRASTRUCTURE CONDITION.—To maintain the highway infrastructure asset system in a state of good repair. 

‘‘(3) CONGESTION REDUCTION.—To achieve a significant reduction in congestion on the National Highway System. 

‘‘(4) SYSTEM RELIABILITY.—To improve the efficiency of the 

surface transportation system. 

‘‘(5) FREIGHT MOVEMENT AND ECONOMIC VITALITY.—To improve the national freight network, strengthen the ability of 

rural communities to access national and international trade 

markets, and support regional economic development. 

‘‘(6) ENVIRONMENTAL SUSTAINABILITY.—To enhance the performance of the transportation system while protecting and enhancing the natural environment. 

‘‘(7) REDUCED PROJECT DELIVERY DELAYS.—To reduce 

project costs, promote jobs and the economy, and expedite the 

movement of people and goods by accelerating project completion through eliminating delays in the project development and 

delivery process, including reducing regulatory burdens and improving agencies’ work practices. 

‘‘(c) ESTABLISHMENT OF PERFORMANCE MEASURES.— ‘‘(1) IN GENERAL.—Not later than 18 months after the date 

of enactment of the MAP–21, the Secretary, in consultation with 

State departments of transportation, metropolitan planning organizations, and other stakeholders, shall promulgate a rulemaking that establishes performance measures and standards. 

‘‘(2) ADMINISTRATION.—In carrying out paragraph (1), the 

Secretary shall— 

‘‘(A) provide States, metropolitan planning organizations, and other stakeholders not less than 90 days to comment on any regulation proposed by the Secretary under 

that paragraph; 

‘‘(B) take into consideration any comments relating to 

a proposed regulation received during that comment period; 

and 

‘‘(C) limit performance measures only to those described in this subsection. 

‘‘(3) NATIONAL HIGHWAY PERFORMANCE PROGRAM.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), for the 

purpose of carrying out section 119, the Secretary shall establish — 

‘‘(i) minimum standards for States to use in developing and operating bridge and pavement management 

systems; 

‘‘(ii) measures for States to use to assess— 

‘‘(I) the condition of pavements on the Interstate system; 

‘‘(II) the condition of pavements on the National Highway System (excluding the Interstate); 

‘‘(III) the condition of bridges on the National 

Highway System; 


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‘‘(IV) the performance of the Interstate System; 

and 

‘‘(V) the performance of the National Highway 

System (excluding the Interstate System); 

‘‘(iii) minimum levels for the condition of pavement 

on the Interstate System, only for the purposes of carrying out section 119(f)(1); and 

‘‘(iv) the data elements that are necessary to collect 

and maintain standardized data to carry out a performance-based approach. 

‘‘(B) REGIONS.—In establishing minimum condition 

levels under subparagraph (A)(iii), if the Secretary determines that various geographic regions of the United States 

experience disparate factors contributing to the condition of 

pavement on the Interstate System in those regions, the Secretary may establish different minimum levels for each region; 

‘‘(4) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—For the 

purpose of carrying out section 148, the Secretary shall establish measures for States to use to assess— 

‘‘(A) serious injuries and fatalities per vehicle mile 

traveled; and 

‘‘(B) the number of serious injuries and fatalities. 

‘‘(5) CONGESTION MITIGATION AND AIR QUALITY PROGRAM.— For the purpose of carrying out section 149, the Secretary shall 

establish measures for States to use to assess— 

‘‘(A) traffic congestion; and 

‘‘(B) on-road mobile source emissions. 

‘‘(6) NATIONAL FREIGHT MOVEMENT.—The Secretary shall 

establish measures for States to use to assess freight movement 

on the Interstate System. 

‘‘(d) ESTABLISHMENT OF PERFORMANCE TARGETS.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the Secretary 

has promulgated the final rulemaking under subsection (c), 

each State shall set performance targets that reflect the measures identified in paragraphs (3), (4), (5), and (6) of subsection 

(c). 

‘‘(2) DIFFERENT APPROACHES FOR URBAN AND RURAL

AREAS.—In the development and implementation of any performance target, a State may, as appropriate, provide for different performance targets for urbanized and rural areas. 

‘‘(e) REPORTING ON PERFORMANCE TARGETS.—Not later than 4 

years after the date of enactment of the MAP–21 and biennially 

thereafter, a State shall submit to the Secretary a report that describes— 

‘‘(1) the condition and performance of the National Highway System in the State; 

‘‘(2) the effectiveness of the investment strategy document in 

the State asset management plan for the National Highway 

System; 

‘‘(3) progress in achieving performance targets identified 

under subsection (d); and 

‘‘(4) the ways in which the State is addressing congestion 

at freight bottlenecks, including those identified in the National 

Freight Strategic Plan, within the State.’’. 


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(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by striking the item relating to section 150 and inserting the following: 

‘‘150. National goals and performance management measures.’’. 

Subtitle C—Acceleration of Project Delivery 

SEC. 1301. DECLARATION OF POLICY AND PROJECT DELIVERY INITIATIVE. 

(a) IN GENERAL.—It is the policy of the United States that— 

(1) it is in the national interest for the Department, State 

departments of transportation, transit agencies, and all other 

recipients of Federal transportation funds— 

(A) to accelerate project delivery and reduce costs; and 

(B) to ensure that the planning, design, engineering, 

construction, and financing of transportation projects is 

done in an efficient and effective manner, promoting accountability for public investments and encouraging greater 

private sector involvement in project financing and delivery 

while enhancing safety and protecting the environment; 

(2) delay in the delivery of transportation projects increases 

project costs, harms the economy of the United States, and impedes the travel of the people of the United States and the shipment of goods for the conduct of commerce; and 

(3) the Secretary shall identify and promote the deployment 

of innovation aimed at reducing the time and money required 

to deliver transportation projects while enhancing safety and 

protecting the environment. 

(b) PROJECT DELIVERY INITIATIVE.— (1) IN GENERAL.—To advance the policy described in subsection (a), the Secretary shall carry out a project delivery initiative under this section. 

(2) PURPOSES.—The purposes of the project delivery initiative shall be— 

(A) to develop and advance the use of best practices to 

accelerate project delivery and reduce costs across all modes 

of transportation and expedite the deployment of technology 

and innovation; 

(B) to implement provisions of law designed to accelerate project delivery; and 

(C) to select eligible projects for applying experimental 

features to test innovative project delivery techniques. 

(3) ADVANCING THE USE OF BEST PRACTICES.— (A) IN GENERAL.—In carrying out the initiative under 

this section, the Secretary shall identify and advance best 

practices to reduce delivery time and project costs, from 

planning through construction, for transportation projects 

and programs of projects regardless of mode and project 

size. 

(B) ADMINISTRATION.—To advance the use of best practices, the Secretary shall— 

(i) engage interested parties, affected communities, 

resource agencies, and other stakeholders to gather information regarding opportunities for accelerating 

project delivery and reducing costs; 


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(ii) establish a clearinghouse for the collection, documentation, and advancement of existing and new innovative approaches and best practices; 

(iii) disseminate information through a variety of 

means to transportation stakeholders on new innovative approaches and best practices; and 

(iv) provide technical assistance to assist transportation stakeholders in the use of flexibility authority to 

resolve project delays and accelerate project delivery if 

feasible. 

(4) IMPLEMENTATION OF ACCELERATED PROJECT DELIV- ERY.—The Secretary shall ensure that the provisions of this 

subtitle designed to accelerate project delivery are fully implemented, including— 

(A) expanding eligibility of early acquisition of property 

prior to completion of environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.); 

(B) allowing the use of the construction manager or 

general contractor method of contracting in the Federal-aid 

highway system; and 

(C) establishing a demonstration program to streamline the relocation process by permitting a lump-sum payment for acquisition and relocation if elected by the displaced occupant. 

(c) EXPEDITED PROJECT DELIVERY.—Section 101(b) of title 23, 

United States Code, is amended by adding at the end the following: 

‘‘(4) EXPEDITED PROJECT DELIVERY.— ‘‘(A) IN GENERAL.—Congress declares that it is in the 

national interest to expedite the delivery of surface transportation projects by substantially reducing the average 

length of the environmental review process. 

‘‘(B) POLICY OF THE UNITED STATES.—Accordingly, it is 

the policy of the United States that— 

‘‘(i) the Secretary shall have the lead role among 

Federal agencies in carrying out the environmental review process for surface transportation projects; 

‘‘(ii) each Federal agency shall cooperate with the 

Secretary to expedite the environmental review process 

for surface transportation projects; 

‘‘(iii) project sponsors shall not be prohibited from 

carrying out preconstruction project development activities concurrently with the environmental review process; 

‘‘(iv) programmatic approaches shall be used to reduce the need for project-by-project reviews and decisions by Federal agencies; and 

‘‘(v) the Secretary shall identify opportunities for 

project sponsors to assume responsibilities of the Secretary where such responsibilities can be assumed in a 

manner that protects public health, the environment, 

and public participation.’’. 

SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS. 

(a) REAL PROPERTY INTERESTS.—Section 108 of title 23, United 

States Code, is amended— 


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(1) by striking ‘‘real property’’ each place it appears and inserting ‘‘real property interests’’; 

(2) by striking ‘‘right-of-way’’ each place it appears and inserting ‘‘real property interest’’; and 

(3) by striking ‘‘rights-of-way’’ each place it appears and inserting ‘‘real property interests’’. 

(b) STATE-FUNDED EARLY ACQUISITION OF REAL PROPERTY INTERESTS.—Section 108(c) of title 23, United States Code, is amended— 

(1) in the subsection heading, by striking ‘‘EARLY ACQUISITION OF RIGHTS-OF-WAY’’ and inserting ‘‘STATE-FUNDED EARLY

ACQUISITION OF REAL PROPERTY INTERESTS’’; 

(2) by redesignating paragraphs (1) and (2) as paragraphs 

(2) and (3), respectively; 

(3) in paragraph (2) (as so redesignated)— 

(A) in the heading, by striking ‘‘GENERAL RULE’’ and 

inserting ‘‘ELIGIBILITY FOR REIMBURSEMENT’’; and 

(B) by striking ‘‘Subject to paragraph (2)’’ and inserting 

‘‘Subject to paragraph (3)’’; 

(4) by inserting before paragraph (2) (as so redesignated) 

the following: 

‘‘(1) IN GENERAL.—A State may carry out, at the expense of 

the State, acquisitions of interests in real property for a project 

before completion of the review process required for the project 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.) without affecting subsequent approvals required for the project by the State or any Federal agency.’’; and 

(5) in paragraph (3) (as so redesignated)— 

(A) in the matter preceding subparagraph (A), by striking ‘‘in paragraph (1)’’ and inserting ‘‘in paragraph (2)’’; 

and 

(B) in subparagraph (G), by striking ‘‘both the Secretary and the Administrator of the Environmental Protection Agency have concurred’’ and inserting ‘‘the Secretary 

has determined’’. 

(c) FEDERALLY FUNDED ACQUISITION OF REAL PROPERTY INTERESTS.—Section 108 of title 23, United States Code, is amended by 

adding at the end the following: 

‘‘(d) FEDERALLY FUNDED EARLY ACQUISITION OF REAL PROPERTY INTERESTS.— 

‘‘(1) DEFINITION OF ACQUISITION OF A REAL PROPERTY INTEREST.—In this subsection, the term ‘acquisition of a real 

property interest’ includes the acquisition of— 

‘‘(A) any interest in land; 

‘‘(B) a contractual right to acquire any interest in land; 

or 

‘‘(C) any other similar action to acquire or preserve 

rights-of-way for a transportation facility. 

‘‘(2) AUTHORIZATION.—The Secretary may authorize the use 

of funds apportioned to a State under this title for the acquisition of a real property interest by a State. 

‘‘(3) STATE CERTIFICATION.—A State requesting Federal 

funding for an acquisition of a real property interest shall certify in writing, with concurrence by the Secretary, that— 


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‘‘(A) the State has authority to acquire the real property 

interest under State law; and 

‘‘(B) the acquisition of the real property interest— 

‘‘(i) is for a transportation purpose; 

‘‘(ii) will not cause any significant adverse environmental impact; 

‘‘(iii) will not limit the choice of reasonable alternatives for the project or otherwise influence the decision of the Secretary on any approval required for the 

project; 

‘‘(iv) does not prevent the lead agency from making 

an impartial decision as to whether to accept an alternative that is being considered in the environmental review process; 

‘‘(v) is consistent with the State transportation 

planning process under section 135; 

‘‘(vi) complies with other applicable Federal laws 

(including regulations); 

‘‘(vii) will be acquired through negotiation, without 

the threat of condemnation; and 

‘‘(viii) will not result in a reduction or elimination 

of benefits or assistance to a displaced person required 

by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et 

seq.) and title VI of the Civil Rights Act of 1964 (42 

U.S.C. 2000d et seq.). 

‘‘(4) ENVIRONMENTAL COMPLIANCE.— ‘‘(A) IN GENERAL.—Before authorizing Federal funding 

for an acquisition of a real property interest, the Secretary 

shall complete the review process under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with 

respect to the acquisition of the real property interest. 

‘‘(B) INDEPENDENT UTILITY.—The acquisition of a real 

property interest— 

‘‘(i) shall be treated as having independent utility 

for purposes of the review process under the National 

Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.); and 

‘‘(ii) shall not limit consideration of alternatives for 

future transportation improvements with respect to the 

real property interest. 

‘‘(5) PROGRAMMING.— 

‘‘(A) IN GENERAL.—The acquisition of a real property 

interest for which Federal funding is requested shall be included as a project in an applicable transportation improvement program under sections 134 and 135 and sections 5303 and 5304 of title 49. 

‘‘(B) ACQUISITION PROJECT.—The acquisition project 

may consist of the acquisition of a specific parcel, a portion 

of a transportation corridor, or an entire transportation 

corridor. 

‘‘(6) DEVELOPMENT.—Real property interests acquired 

under this subsection may not be developed in anticipation of 

a project until all required environmental reviews for the 

project have been completed. 


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‘‘(7) REIMBURSEMENT.—If Federal-aid reimbursement is 

made for real property interests acquired early under this section and the real property interests are not subsequently incorporated into a project eligible for surface transportation funds 

within the time allowed by subsection (a)(2), the Secretary shall 

offset the amount reimbursed against funds apportioned to the 

State. 

‘‘(8) OTHER REQUIREMENTS AND CONDITIONS.— 

‘‘(A) APPLICABLE LAW.—The acquisition of a real property interest shall be carried out in compliance with all requirements applicable to the acquisition of real property interests for federally funded transportation projects. 

‘‘(B) ADDITIONAL CONDITIONS.—The Secretary may establish such other conditions or restrictions on acquisitions 

under this subsection as the Secretary determines to be appropriate.’’. 

SEC. 1303. LETTING OF CONTRACTS. 

(a) EFFICIENCIES IN CONTRACTING.—Section 112(b) of title 23, 

United States Code, is amended by adding at the end the following: 

‘‘(4) METHOD OF CONTRACTING.— 

‘‘(A) IN GENERAL.— 

‘‘(i) 2-PHASE CONTRACT.—A contracting agency may 

award a 2-phase contract to a construction manager or 

general contractor for preconstruction and construction 

services. 

‘‘(ii) PRECONSTRUCTION SERVICES PHASE.—In the 

preconstruction services phase of a contract under this 

paragraph, the contractor shall provide the contracting 

agency with advice for scheduling, work sequencing, 

cost engineering, constructability, cost estimating, and 

risk identification. 

‘‘(iii) AGREEMENT.—Prior to the start of the construction services phase, the contracting agency and the 

contractor may agree to a price and other factors specified in regulation for the construction of the project or 

a portion of the project. 

‘‘(iv) CONSTRUCTION PHASE.—If an agreement is 

reached under clause (iii), the contractor shall be responsible for the construction of the project or portion 

of the project at the negotiated price and in compliance 

with the other factors specified in the agreement. 

‘‘(B) SELECTION.—A contract shall be awarded to a 

contractor under this paragraph using a competitive selection process based on qualifications, experience, best value, 

or any other combination of factors considered appropriate 

by the contracting agency. 

‘‘(C) TIMING.— 

‘‘(i) RELATIONSHIP TO NEPA PROCESS.—Prior to the 

completion of the environmental review process required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332), a contracting agency may— 

‘‘(I) issue requests for proposals; 


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‘‘(II) proceed with the award of a contract for 

preconstruction services under subparagraph 

(A)(ii); and 

‘‘(III) issue notices to proceed with a preliminary design and any work related to preliminary 

design, to the extent that those actions do not limit 

any reasonable range of alternatives. 

‘‘(ii) CONSTRUCTION SERVICES PHASE.—A contracting agency shall not proceed with the award of the 

construction services phase of a contract under subparagraph (A)(iv) and shall not proceed, or permit any 

consultant or contractor to proceed, with final design 

or construction until completion of the environmental 

review process required under section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 

4332). 

‘‘(iii) APPROVAL REQUIREMENT.—Prior to authorizing construction activities, the Secretary shall approve— 

‘‘(I) the price estimate of the contracting agency for the entire project; and 

‘‘(II) any price agreement with the general contractor for the project or a portion of the project. 

‘‘(iv) DESIGN ACTIVITIES.— 

‘‘(I) IN GENERAL.—A contracting agency may 

proceed, at the expense of the contracting agency, 

with design activities at any level of detail for a 

project before completion of the review process required for the project under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

without affecting subsequent approvals required 

for the project. 

‘‘(II) REIMBURSEMENT.—Design activities carried out under subclause (I) shall be eligible for 

Federal reimbursement as a project expense in accordance with the requirements under section 

109(r). 

‘‘(v) TERMINATION PROVISION.—The Secretary shall 

require a contract to include an appropriate termination provision in the event that a no-build alternative is selected.’’. 

(b) REGULATIONS.—The Secretary shall promulgate such regulations as are necessary to carry out the amendment made by subsection (a). 

(c) EFFECT ON EXPERIMENTAL PROGRAM.—Nothing in this section or the amendment made by this section affects the authority to 

carry out, or any project carried out under, any experimental program concerning construction manager risk that is being carried out 

by the Secretary as of the date of enactment of this Act. 

SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS. 

(a) DECLARATION OF POLICY.— 

(1) IN GENERAL.—Congress declares that it is in the national interest to promote the use of innovative technologies and 

practices that increase the efficiency of construction of, improve 


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the safety of, and extend the service life of highways and 

bridges. 

(2) INCLUSIONS.—The innovative technologies and practices 

described in paragraph (1) include state-of-the-art intelligent 

transportation system technologies, elevated performance standards, and new highway construction business practices that improve highway safety and quality, accelerate project delivery, 

and reduce congestion related to highway construction. 

(b) FEDERAL SHARE.—Section 120(c) of title 23, United States 

Code, is amended by adding at the end the following: 

‘‘(3) INNOVATIVE PROJECT DELIVERY.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(C), the Federal share payable on account of a project, program, or activity carried out with funds apportioned under 

paragraph (1), (2), or (5) of section 104(b) may, at the discretion of the State, be up to 100 percent for any such 

project, program, or activity that the Secretary determines— 

‘‘(i) contains innovative project delivery methods 

that improve work zone safety for motorists or workers 

and the quality of the facility; 

‘‘(ii) contains innovative technologies, manufacturing processes, financing, or contracting methods 

that improve the quality of, extend the service life of, 

or decrease the long-term costs of maintaining highways and bridges; 

‘‘(iii) accelerates project delivery while complying 

with other applicable Federal laws (including regulations) and not causing any significant adverse environmental impact; or 

‘‘(iv) reduces congestion related to highway construction. 

‘‘(B) EXAMPLES.—Projects, programs, and activities described in subparagraph (A) may include the use of— 

‘‘(i) prefabricated bridge elements and systems and 

other technologies to reduce bridge construction time; 

‘‘(ii) innovative construction equipment, materials, 

or techniques, including the use of in-place recycling 

technology and digital 3-dimensional modeling technologies; 

‘‘(iii) innovative contracting methods, including the 

design-build and the construction manager-general 

contractor contracting methods; 

‘‘(iv) intelligent compaction equipment; or 

‘‘(v) contractual provisions that offer a contractor 

an incentive payment for early completion of the 

project, program, or activity, subject to the condition 

that the incentives are accounted for in the financial 

plan of the project, when applicable. 

‘‘(C) LIMITATIONS.— 

‘‘(i) IN GENERAL.—In each fiscal year, a State may 

use the authority under subparagraph (A) for up to 10 

percent of the combined apportionments of the State 

under paragraphs (1), (2), and (5) of section 104(b). 


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‘‘(ii) FEDERAL SHARE INCREASE.—The Federal 

share payable on account of a project, program, or activity described in subparagraph (A) may be increased 

by up to 5 percent of the total project cost.’’. 

SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT DECISIONMAKING. 

(a) FLEXIBILITY.—Section 139(b) of title 23, United States Code, 

is amended— 

(1) in paragraph (2) by inserting ‘‘, and any requirements 

established under this section may be satisfied,’’ after ‘‘exercised’’; and 

(2) by adding at the end the following: 

‘‘(3) PROGRAMMATIC COMPLIANCE.— ‘‘(A) IN GENERAL.—The Secretary shall initiate a rulemaking to allow for the use of programmatic approaches to 

conduct environmental reviews that— 

‘‘(i) eliminate repetitive discussions of the same 

issues; 

‘‘(ii) focus on the actual issues ripe for analyses at 

each level of review; and 

‘‘(iii) are consistent with— 

‘‘(I) the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.); and 

‘‘(II) other applicable laws. 

‘‘(B) REQUIREMENTS.—In carrying out subparagraph 

(A), the Secretary shall— 

‘‘(i) before initiating the rulemaking under that 

subparagraph, consult with relevant Federal agencies 

and State resource agencies, State departments of 

transportation, Indian tribes, and the public on the appropriate use and scope of the programmatic approaches; 

‘‘(ii) emphasize the importance of collaboration 

among relevant Federal agencies, State agencies, and 

Indian tribes in undertaking programmatic reviews, especially with respect to including reviews with a broad 

geographic scope; 

‘‘(iii) ensure that the programmatic reviews— 

‘‘(I) promote transparency, including of the 

analyses and data used in the environmental reviews, the treatment of any deferred issues raised 

by agencies or the public, and the temporal and 

special scales to be used to analyze such issues; 

‘‘(II) use accurate and timely information in 

reviews, including— 

‘‘(aa) criteria for determining the general 

duration of the usefulness of the review; and 

‘‘(bb) the timeline for updating any out-ofdate review; 

‘‘(III) describe— 

‘‘(aa) the relationship between programmatic analysis and future tiered analysis; and 

‘‘(bb) the role of the public in the creation 

of future tiered analysis; and 


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‘‘(IV) are available to other relevant Federal 

and State agencies, Indian tribes, and the public; 

‘‘(iv) allow not fewer than 60 days of public notice 

and comment on any proposed rule; and 

‘‘(v) address any comments received under clause 

(iv).’’. 

(b) FEDERAL LEAD AGENCY.—Section 139(c) of title 23, United 

States Code, is amended— 

(1) in paragraph (1)— 

(A) by striking ‘‘The Department of Transportation’’ 

and inserting the following: 

‘‘(A) IN GENERAL.—The Department of Transportation’’; 

and 

(B) by adding at the end the following: 

‘‘(B) MODAL ADMINISTRATION.—If the project requires 

approval from more than 1 modal administration within 

the Department, the Secretary may designate a single 

modal administration to serve as the Federal lead agency 

for the Department in the environmental review process for 

the project.’’. 

(c) PARTICIPATING AGENCIES.—Section 139(d) of title 23, United 

States Code, is amended— 

(1) by striking paragraph (4) and inserting the following: 

‘‘(4) EFFECT OF DESIGNATION.— ‘‘(A) REQUIREMENT.—A participating agency shall comply with the requirements of this section. 

‘‘(B) IMPLICATION.—Designation as a participating 

agency under this subsection shall not imply that the participating agency— 

‘‘(i) supports a proposed project; or 

‘‘(ii) has any jurisdiction over, or special expertise 

with respect to evaluation of, the project.’’; and 

(2) by striking paragraph (7) and inserting the following: 

‘‘(7) CONCURRENT REVIEWS.—Each participating agency 

and cooperating agency shall— 

‘‘(A) carry out the obligations of that agency under 

other applicable law concurrently, and in conjunction, with 

the review required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), unless doing so 

would impair the ability of the Federal agency to conduct 

needed analysis or otherwise carry out those obligations; 

and 

‘‘(B) formulate and implement administrative, policy, 

and procedural mechanisms to enable the agency to ensure 

completion of the environmental review process in a timely, 

coordinated, and environmentally responsible manner.’’. 

(d) PROJECT INITIATION.—Section 139(e) of title 23, United 

States Code, is amended— 

(1) by striking ‘‘The project sponsor’’ and inserting the following: 

‘‘(1) IN GENERAL.—The project sponsor’’; and 

(2) by adding at the end the following: 

‘‘(2) SUBMISSION OF DOCUMENTS.—The project sponsor may 

satisfy the requirement under paragraph (1) by submitting to 

the Secretary any relevant documents containing the informaVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00140 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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tion described in that paragraph, including a draft notice for 

publication in the Federal Register announcing the preparation 

of an environmental review for the project.’’. 

(e) COORDINATION AND SCHEDULING.—Section 139(g)(1)(B)(i) of 

title 23, United States Code, is amended by inserting ‘‘and the concurrence of’’ after ‘‘consultation with’’. 

SEC. 1306. ACCELERATED DECISIONMAKING. 

Section 139(h) of title 23, United States Code, is amended by 

striking paragraph (4) and inserting the following: 

‘‘(4) INTERIM DECISION ON ACHIEVING ACCELERATED DECI- SIONMAKING.— ‘‘(A) IN GENERAL.—Not later than 30 days after the 

close of the public comment period on a draft environmental impact statement, the Secretary may convene a 

meeting with the project sponsor, lead agency, resource 

agencies, and any relevant State agencies to ensure that all 

parties are on schedule to meet deadlines for decisions to 

be made regarding the project. 

‘‘(B) DEADLINES.—The deadlines referred to in subparagraph (A) shall be those established under subsection 

(g), or any other deadlines established by the lead agency, 

in consultation with the project sponsor and other relevant 

agencies. 

‘‘(C) FAILURE TO ASSURE.—If the relevant agencies cannot provide reasonable assurances that the deadlines described in subparagraph (B) will be met, the Secretary may 

initiate the issue resolution and referral process described 

under paragraph (5) and before the completion of the 

record of decision. 

‘‘(5) ACCELERATED ISSUE RESOLUTION AND REFERRAL.— ‘‘(A) AGENCY ISSUE RESOLUTION MEETING.— ‘‘(i) IN GENERAL.—A Federal agency of jurisdiction, 

project sponsor, or the Governor of a State in which a 

project is located may request an issue resolution meeting to be conducted by the lead agency. 

‘‘(ii) ACTION BY LEAD AGENCY.—The lead agency 

shall convene an issue resolution meeting under clause 

(i) with the relevant participating agencies and the 

project sponsor, including the Governor only if the 

meeting was requested by the Governor, to resolve 

issues that could— 

‘‘(I) delay completion of the environmental review process; or 

‘‘(II) result in denial of any approvals required 

for the project under applicable laws. 

‘‘(iii) DATE.—A meeting requested under this subparagraph shall be held by not later than 21 days after 

the date of receipt of the request for the meeting, unless 

the lead agency determines that there is good cause to 

extend the time for the meeting. 

‘‘(iv) NOTIFICATION.—On receipt of a request for a 

meeting under this subparagraph, the lead agency 

shall notify all relevant participating agencies of the 

request, including the issue to be resolved, and the date 

for the meeting. 


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‘‘(v) DISPUTES.—If a relevant participating agency 

with jurisdiction over an approval required for a 

project under applicable law determines that the relevant information necessary to resolve the issue has not 

been obtained and could not have been obtained within 

a reasonable time, but the lead agency disagrees, the 

resolution of the dispute shall be forwarded to the 

heads of the relevant agencies for resolution. 

‘‘(vi) CONVENTION BY LEAD AGENCY.—A lead agency may convene an issue resolution meeting under this 

subsection at any time without the request of the Federal agency of jurisdiction, project sponsor, or the Governor of a State. 

‘‘(B) ELEVATION OF ISSUE RESOLUTION.— 

‘‘(i) IN GENERAL.—If issue resolution is not 

achieved by not later than 30 days after the date of a 

relevant meeting under subparagraph (A), the Secretary shall notify the lead agency, the heads of the relevant participating agencies, and the project sponsor 

(including the Governor only if the initial issue resolution meeting request came from the Governor) that an 

issue resolution meeting will be convened. 

‘‘(ii) REQUIREMENTS.—The Secretary shall identify 

the issues to be addressed at the meeting and convene 

the meeting not later than 30 days after the date of 

issuance of the notice. 

‘‘(C) REFERRAL OF ISSUE RESOLUTION.— ‘‘(i) REFERRAL TO COUNCIL ON ENVIRONMENTAL

QUALITY.— 

‘‘(I) IN GENERAL.—If resolution is not achieved 

by not later than 30 days after the date of an issue 

resolution meeting under subparagraph (B), the 

Secretary shall refer the matter to the Council on 

Environmental Quality. 

‘‘(II) MEETING.—Not later than 30 days after 

the date of receipt of a referral from the Secretary 

under subclause (I), the Council on Environmental 

Quality shall hold an issue resolution meeting 

with the lead agency, the heads of relevant participating agencies, and the project sponsor (including 

the Governor only if an initial request for an issue 

resolution meeting came from the Governor). 

‘‘(ii) REFERRAL TO THE PRESIDENT.—If a resolution 

is not achieved by not later than 30 days after the date 

of the meeting convened by the Council on Environmental Quality under clause (i)(II), the Secretary shall 

refer the matter directly to the President. 

‘‘(6) FINANCIAL PENALTY PROVISIONS.— 

‘‘(A) IN GENERAL.—A Federal agency of jurisdiction 

over an approval required for a project under applicable 

laws shall complete any required approval on an expeditious basis using the shortest existing applicable process. 

‘‘(B) FAILURE TO DECIDE.— 

‘‘(i) IN GENERAL.—If an agency described in subparagraph (A) fails to render a decision under any 


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Federal law relating to a project that requires the preparation of an environmental impact statement or environmental assessment, including the issuance or denial 

of a permit, license, or other approval by the date described in clause (ii), an amount of funding equal to 

the amounts specified in subclause (I) or (II) shall be 

rescinded from the applicable office of the head of the 

agency, or equivalent office to which the authority for 

rendering the decision has been delegated by law by 

not later than 1 day after the applicable date under 

clause (ii), and once each week thereafter until a final 

decision is rendered, subject to subparagraph (C)— 

‘‘(I) $20,000 for any project for which an annual financial plan under section 106(i) is required; or 

‘‘(II) $10,000 for any other project requiring 

preparation of an environmental assessment or environmental impact statement. 

‘‘(ii) DESCRIPTION OF DATE.—The date referred to 

in clause (i) is the later of— 

‘‘(I) the date that is 180 days after the date on 

which an application for the permit, license, or approval is complete; and 

‘‘(II) the date that is 180 days after the date on 

which the Federal lead agency issues a decision on 

the project under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

‘‘(C) LIMITATIONS.— 

‘‘(i) IN GENERAL.—No rescission of funds under 

subparagraph (B) relating to an individual project 

shall exceed, in any fiscal year, an amount equal to 2.5 

percent of the funds made available for the applicable 

agency office. 

‘‘(ii) FAILURE TO DECIDE.—The total amount rescinded in a fiscal year as a result of a failure by an 

agency to make a decision by an applicable deadline 

shall not exceed an amount equal to 7 percent of the 

funds made available for the applicable agency office 

for that fiscal year. 

‘‘(D) NO FAULT OF AGENCY.—A rescission of funds 

under this paragraph shall not be made if the lead agency 

for the project certifies that— 

‘‘(i) the agency has not received necessary information or approvals from another entity, such as the 

project sponsor, in a manner that affects the ability of 

the agency to meet any requirements under State, local, 

or Federal law; or 

‘‘(ii) significant new information or circumstances, 

including a major modification to an aspect of the 

project, requires additional analysis for the agency to 

make a decision on the project application. 

‘‘(E) LIMITATION.—The Federal agency with jurisdiction for the decision from which funds are rescinded pursuant to this paragraph shall not reprogram funds to the ofVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00143 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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fice of the head of the agency, or equivalent office, to reimburse that office for the loss of the funds. 

‘‘(F) AUDITS.—In any fiscal year in which any funds 

are rescinded from a Federal agency pursuant to this paragraph, the Inspector General of that agency shall— 

‘‘(i) conduct an audit to assess compliance with the 

requirements of this paragraph; and 

‘‘(ii) not later than 120 days after the end of the 

fiscal year during which the rescission occurred, submit to the Committee on Environment and Public 

Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report describing the reasons why the transfers 

were levied, including allocations of resources. 

‘‘(G) EFFECT OF PARAGRAPH.—Nothing in this paragraph affects or limits the application of, or obligation to 

comply with, any Federal, State, local, or tribal law. 

‘‘(7) EXPEDIENT DECISIONS AND REVIEWS.—To ensure that 

Federal environmental decisions and reviews are expeditiously 

made— 

‘‘(A) adequate resources made available under this title 

shall be devoted to ensuring that applicable environmental 

reviews under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.) are completed on an expeditious basis and that the shortest existing applicable process 

under that Act is implemented; and 

‘‘(B) the President shall submit to the Committee on 

Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public 

Works of the Senate, not less frequently than once every 120 

days after the date of enactment of the MAP–21, a report 

on the status and progress of the following projects and activities funded under this title with respect to compliance 

with applicable requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.): 

‘‘(i) Projects and activities required to prepare an 

annual financial plan under section 106(i). 

‘‘(ii) A sample of not less than 5 percent of the 

projects requiring preparation of an environmental impact statement or environmental assessment in each 

State.’’. 

SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES. 

Section 139(j) of title 23, United States Code, is amended by 

adding at the end the following: 

‘‘(6) MEMORANDUM OF UNDERSTANDING.—Prior to providing 

funds approved by the Secretary for dedicated staffing at an affected Federal agency under paragraphs (1) and (2), the affected 

Federal agency and the State agency shall enter into a memorandum of understanding that establishes the projects and priorities to be addressed by the use of the funds.’’. 

SEC. 1308. LIMITATIONS ON CLAIMS. 

Section 139(l) of title 23, United States Code, is amended— 

(1) in paragraph (1) by striking ‘‘180 days’’ and inserting 

‘‘150 days’’; and 


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(2) in paragraph (2) by striking ‘‘180 days’’ and inserting 

‘‘150 days’’. 

SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS 

WITHIN 4 YEARS. 

Section 139 of title 23, United States Code, is amended by adding at the end the following: 

‘‘(m) ENHANCED TECHNICAL ASSISTANCE AND ACCELERATED

PROJECT COMPLETION.— ‘‘(1) DEFINITION OF COVERED PROJECT.—In this subsection, 

the term ‘covered project’ means a project— 

‘‘(A) that has an ongoing environmental impact statement under the National Environmental Policy Act of 1969 

(42 U.S.C. 4321 et seq.); and 

‘‘(B) for which at least 2 years, beginning on the date 

on which a notice of intent is issued, have elapsed without 

the issuance of a record of decision. 

‘‘(2) TECHNICAL ASSISTANCE.—At the request of a project 

sponsor or the Governor of a State in which a project is located, 

the Secretary shall provide additional technical assistance to resolve for a covered project any outstanding issues and project 

delay, including by— 

‘‘(A) providing additional staff, training, and expertise; 

‘‘(B) facilitating interagency coordination; 

‘‘(C) promoting more efficient collaboration; and 

‘‘(D) supplying specialized onsite assistance. 

‘‘(3) SCOPE OF WORK.— ‘‘(A) IN GENERAL.—In providing technical assistance for 

a covered project under this subsection, the Secretary shall 

establish a scope of work that describes the actions that the 

Secretary will take to resolve the outstanding issues and 

project delays, including establishing a schedule under subparagraph (B). 

‘‘(B) SCHEDULE.— ‘‘(i) IN GENERAL.—The Secretary shall establish 

and meet a schedule for the completion of any permit, 

approval, review, or study, required for the covered 

project by the date that is not later than 4 years after 

the date on which a notice of intent for the covered 

project is issued. 

‘‘(ii) INCLUSIONS.—The schedule under clause (i) 

shall— 

‘‘(I) comply with all applicable laws; 

‘‘(II) require the concurrence of the Council on 

Environmental Quality and each participating 

agency for the project with the State in which the 

project is located or the project sponsor, as applicable; and 

‘‘(III) reflect any new information that becomes 

available and any changes in circumstances that 

may result in new significant impacts that could 

affect the timeline for completion of any permit, 

approval, review, or study required for the covered 

project. 

‘‘(4) CONSULTATION.—In providing technical assistance for 

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sult, if appropriate, with resource and participating agencies on 

all methods available to resolve the outstanding issues and 

project delays for a covered project as expeditiously as possible. 

‘‘(5) ENFORCEMENT.— 

‘‘(A) IN GENERAL.—All provisions of this section shall 

apply to this subsection, including the financial penalty 

provisions under subsection (h)(6). 

‘‘(B) RESTRICTION.—If the Secretary enforces this subsection under subsection (h)(6), the Secretary may use a 

date included in a schedule under paragraph (3)(B) that is 

created pursuant to and is in compliance with this subsection in lieu of the dates under subsection (h)(6)(B)(ii).’’. 

SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW. 

(a) IN GENERAL.—Chapter 1 of title 23, United States Code (as 

amended by section 1115(a)), is amended by adding at the end the 

following: 

‘‘§ 168. Integration of planning and environmental review 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

apply: 

‘‘(1) ENVIRONMENTAL REVIEW PROCESS.—The term ‘environmental review process’ means the process for preparing for a 

project an environmental impact statement, environmental assessment, categorical exclusion, or other document prepared 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.). 

‘‘(2) PLANNING PRODUCT.—The term ‘planning product’ 

means a detailed and timely decision, analysis, study, or other 

documented information that— 

‘‘(A) is the result of an evaluation or decisionmaking 

process carried out during transportation planning, including a detailed corridor plan or a transportation plan developed under section 134 that fully analyzes impacts on mobility, adjacent communities, and the environment; 

‘‘(B) is intended to be carried into the transportation 

project development process; and 

‘‘(C) has been approved by the State, all local and tribal governments where the project is located, and by any relevant metropolitan planning organization. 

‘‘(3) PROJECT.—The term ‘project’ has the meaning given 

the term in section 139(a). 

‘‘(4) PROJECT SPONSOR.—The term ‘project sponsor’ has the 

meaning given the term in section 139(a). 

‘‘(b) ADOPTION OF PLANNING PRODUCTS FOR USE IN NEPA PROCEEDINGS.— 

‘‘(1) IN GENERAL.—Subject to the conditions set forth in 

subsection (d), the Federal lead agency for a project may adopt 

and use a planning product in proceedings relating to any class 

of action in the environmental review process of the project. 

‘‘(2) IDENTIFICATION.—When the Federal lead agency makes 

a determination to adopt and use a planning product, the Federal lead agency shall identify those agencies that participated 

in the development of the planning products. 


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‘‘(3) PARTIAL ADOPTION OF PLANNING PRODUCTS.—The Federal lead agency may adopt a planning product under paragraph (1) in its entirety or may select portions for adoption. 

‘‘(4) TIMING.—A determination under paragraph (1) with 

respect to the adoption of a planning product may be made at 

the time the lead agencies decide the appropriate scope of environmental review for the project but may also occur later in the 

environmental review process, as appropriate. 

‘‘(c) APPLICABILITY.— ‘‘(1) PLANNING DECISIONS.—Planning decisions that may be 

adopted pursuant to this section include— 

‘‘(A) whether tolling, private financial assistance, or 

other special financial measures are necessary to implement 

the project; 

‘‘(B) a decision with respect to modal choice, including 

a decision to implement corridor or subarea study recommendations to advance different modal solutions as separate projects with independent utility; 

‘‘(C) a basic description of the environmental setting; 

‘‘(D) a decision with respect to methodologies for analysis; and 

‘‘(E) an identification of programmatic level mitigation 

for potential impacts that the Federal lead agency, in consultation with Federal, State, local, and tribal resource 

agencies, determines are most effectively addressed at a regional or national program level, including— 

‘‘(i) system-level measures to avoid, minimize, or 

mitigate impacts of proposed transportation investments on environmental resources, including regional 

ecosystem and water resources; and 

‘‘(ii) potential mitigation activities, locations, and 

investments. 

‘‘(2) PLANNING ANALYSES.—Planning analyses that may be 

adopted pursuant to this section include studies with respect 

to— 

‘‘(A) travel demands; 

‘‘(B) regional development and growth; 

‘‘(C) local land use, growth management, and development; 

‘‘(D) population and employment; 

‘‘(E) natural and built environmental conditions; 

‘‘(F) environmental resources and environmentally sensitive areas; 

‘‘(G) potential environmental effects, including the 

identification of resources of concern and potential cumulative effects on those resources, identified as a result of a 

statewide or regional cumulative effects assessment; and 

‘‘(H) mitigation needs for a proposed action, or for programmatic level mitigation, for potential effects that the 

Federal lead agency determines are most effectively addressed at a regional or national program level. 

‘‘(d) CONDITIONS.—Adoption and use of a planning product 

under this section is subject to a determination by the Federal lead 

agency, with the concurrence of other participating agencies with 

relevant expertise and project sponsors as appropriate, and with an 


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opportunity for public notice and comment and consideration of 

those comments by the Federal lead agency, that the following conditions have been met: 

‘‘(1) The planning product was developed through a planning process conducted pursuant to applicable Federal law. 

‘‘(2) The planning product was developed by engaging in 

active consultation with appropriate Federal and State resource 

agencies and Indian tribes. 

‘‘(3) The planning process included broad multidisciplinary 

consideration of systems-level or corridor-wide transportation 

needs and potential effects, including effects on the human and 

natural environment. 

‘‘(4) During the planning process, notice was provided 

through publication or other means to Federal, State, local, and 

tribal governments that might have an interest in the proposed 

project, and to members of the general public, of the planning 

products that the planning process might produce and that 

might be relied on during any subsequent environmental review 

process, and such entities have been provided an appropriate 

opportunity to participate in the planning process leading to 

such planning product. 

‘‘(5) After initiation of the environmental review process, 

but prior to determining whether to rely on and use the planning product, the lead Federal agency has made documentation 

relating to the planning product available to Federal, State, 

local, and tribal governments that may have an interest in the 

proposed action, and to members of the general public, and has 

considered any resulting comments. 

‘‘(6) There is no significant new information or new circumstance that has a reasonable likelihood of affecting the continued validity or appropriateness of the planning product. 

‘‘(7) The planning product has a rational basis and is 

based on reliable and reasonably current data and reasonable 

and scientifically acceptable methodologies. 

‘‘(8) The planning product is documented in sufficient detail to support the decision or the results of the analysis and to 

meet requirements for use of the information in the environmental review process. 

‘‘(9) The planning product is appropriate for adoption and 

use in the environmental review process for the project. 

‘‘(10) The planning product was approved not later than 5 

years prior to date on which the information is adopted pursuant to this section. 

‘‘(e) EFFECT OF ADOPTION.—Any planning product adopted by 

the Federal lead agency in accordance with this section may be incorporated directly into an environmental review process document 

or other environmental document and may be relied upon and used 

by other Federal agencies in carrying out reviews of the project. 

‘‘(f) RULES OF CONSTRUCTION.— ‘‘(1) IN GENERAL.—This section shall not be construed to 

make the environmental review process applicable to the transportation planning process conducted under this title and chapter 53 of title 49. 

‘‘(2) TRANSPORTATION PLANNING ACTIVITIES.—Initiation of 

the environmental review process as a part of, or concurrently 


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with, transportation planning activities does not subject transportation plans and programs to the environmental review process. 

‘‘(3) PLANNING PRODUCTS.—This section shall not be construed to affect the use of planning products in the environmental review process pursuant to other authorities under any 

other provision of law or to restrict the initiation of the environmental review process during planning.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis 

for chapter 1 of title 23, United States Code (as amended by section 

1115(b)), is amended by adding at end the following: 

‘‘Sec. 168. Integration of planning and environmental review.’’. 

SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS. 

(a) IN GENERAL.—Chapter 1 of title 23, United States Code (as 

amended by section 1310(a)), is amended by adding at the end the 

following: 

‘‘§ 169. Development of programmatic mitigation plans 

‘‘(a) IN GENERAL.—As part of the statewide or metropolitan 

transportation planning process, a State or metropolitan planning 

organization may develop 1 or more programmatic mitigation plans 

to address the potential environmental impacts of future transportation projects. 

‘‘(b) SCOPE.— ‘‘(1) SCALE.—A programmatic mitigation plan may be developed on a regional, ecosystem, watershed, or statewide scale. 

‘‘(2) RESOURCES.—The plan may encompass multiple environmental resources within a defined geographic area or may 

focus on a specific resource, such as aquatic resources, parkland, or wildlife habitat. 

‘‘(3) PROJECT IMPACTS.—The plan may address impacts 

from all projects in a defined geographic area or may focus on 

a specific type of project. 

‘‘(4) CONSULTATION.—The scope of the plan shall be determined by the State or metropolitan planning organization, as 

appropriate, in consultation with the agency or agencies with 

jurisdiction over the resources being addressed in the mitigation 

plan. 

‘‘(c) CONTENTS.—A programmatic mitigation plan may include— 

‘‘(1) an assessment of the condition of environmental resources in the geographic area covered by the plan, including 

an assessment of recent trends and any potential threats to 

those resources; 

‘‘(2) an assessment of potential opportunities to improve the 

overall quality of environmental resources in the geographic 

area covered by the plan, through strategic mitigation for impacts of transportation projects; 

‘‘(3) standard measures for mitigating certain types of impacts; 

‘‘(4) parameters for determining appropriate mitigation for 

certain types of impacts, such as mitigation ratios or criteria for 

determining appropriate mitigation sites; 

‘‘(5) adaptive management procedures, such as protocols 

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ing mitigation measures in response to information gathered 

through the monitoring; and 

‘‘(6) acknowledgment of specific statutory or regulatory requirements that must be satisfied when determining appropriate mitigation for certain types of resources. 

‘‘(d) PROCESS.—Before adopting a programmatic mitigation 

plan, a State or metropolitan planning organization shall— 

‘‘(1) consult with each agency with jurisdiction over the environmental resources considered in the programmatic mitigation plan; 

‘‘(2) make a draft of the plan available for review and comment by applicable environmental resource agencies and the 

public; 

‘‘(3) consider any comments received from such agencies 

and the public on the draft plan; and 

‘‘(4) address such comments in the final plan. 

‘‘(e) INTEGRATION WITH OTHER PLANS.—A programmatic mitigation plan may be integrated with other plans, including watershed plans, ecosystem plans, species recovery plans, growth management plans, and land use plans. 

‘‘(f) CONSIDERATION IN PROJECT DEVELOPMENT AND PERMITTING.—If a programmatic mitigation plan has been developed pursuant to this section, any Federal agency responsible for environmental reviews, permits, or approvals for a transportation project 

may use the recommendations in a programmatic mitigation plan 

when carrying out the responsibilities under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

‘‘(g) PRESERVATION OF EXISTING AUTHORITIES.—Nothing in this 

section limits the use of programmatic approaches to reviews under 

the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.).’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis 

for chapter 1 of title 23, United States Code (as amended by section 

1309(b)), is amended by adding at the end the following: 

‘‘Sec. 169. Development of programmatic mitigation plans.’’. 

SEC. 1312. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL EXCLUSIONS. 

Section 326 of title 23, United States Code, is amended— 

(1) in subsection (a) by adding at the end the following: 

‘‘(4) PRESERVATION OF FLEXIBILITY.—The Secretary shall 

not require a State, as a condition of assuming responsibility 

under this section, to forego project delivery methods that are 

otherwise permissible for highway projects.’’; 

(2) by striking subsection (d) and inserting the following: 

‘‘(d) TERMINATION.— 

‘‘(1) TERMINATION BY THE SECRETARY.—The Secretary may 

terminate any assumption of responsibility under a memorandum of understanding on a determination that the State is 

not adequately carrying out the responsibilities assigned to the 

State. 

‘‘(2) TERMINATION BY THE STATE.—The State may terminate 

the participation of the State in the program at any time by 

providing to the Secretary a notice not later than the date that 

is 90 days before the date of termination, and subject to such 

terms and conditions as the Secretary may provide.’’; and 


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(3) by adding at the end the following: 

‘‘(f) LEGAL FEES.—A State assuming the responsibilities of the 

Secretary under this section for a specific project may use funds apportioned to the State under section 104(b)(2) for attorney’s fees directly attributable to eligible activities associated with the project.’’. 

SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM. 

(a) PROGRAM NAME.—Section 327 of title 23, United States 

Code, is amended— 

(1) in the section heading by striking ‘‘pilot’’; and 

(2) in subsection (a)(1) by striking ‘‘pilot’’. 

(b) ASSUMPTION OF RESPONSIBILITY.—Section 327(a)(2) of title 

23, United States Code, is amended— 

(1) in subparagraph (B)— 

(A) in clause (i) by striking ‘‘but’’; and 

(B) by striking clause (ii) and inserting the following: 

‘‘(ii) at the request of the State, the Secretary may 

also assign to the State, and the State may assume, the 

responsibilities of the Secretary with respect to 1 or 

more railroad, public transportation, or multimodal 

projects within the State under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); 

‘‘(iii) in a State that has assumed the responsibilities of the Secretary under clause (ii), a recipient of assistance under chapter 53 of title 49 may request that 

the Secretary maintain the responsibilities of the Secretary with respect to 1 or more public transportation 

projects within the State under the National Environmental Policy Act of 1969 (42 U.S.C. 13 4321 et seq.); 

but 

‘‘(iv) the Secretary may not assign— 

‘‘(I) any responsibility imposed on the Secretary by section 134 or 135 or section 5303 or 

5304 of title 49; or 

‘‘(II) responsibility for any conformity determination required under section 176 of the Clean 

Air Act (42 U.S.C. 7506).’’; and 

(2) by adding at the end the following: 

‘‘(F) PRESERVATION OF FLEXIBILITY.—The Secretary 

may not require a State, as a condition of participation in 

the program, to forego project delivery methods that are 

otherwise permissible for projects. 

‘‘(G) LEGAL FEES.—A State assuming the responsibilities of the Secretary under this section for a specific project 

may use funds apportioned to the State under section 

104(b)(2) for attorneys’ fees directly attributable to eligible 

activities associated with the project.’’. 

(c) STATE PARTICIPATION.—Section 327(b) of title 23, United 

States Code, is amended— 

(1) by striking paragraph (1) and inserting the following: 

‘‘(1) PARTICIPATING STATES.—All States are eligible to participate in the program.’’; and 

(2) in paragraph (2) by striking ‘‘date of enactment of this 

section, the Secretary shall promulgate’’ and inserting ‘‘date on 

which amendments to this section by the MAP–21 take effect, 

the Secretary shall amend, as appropriate,’’. 


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(d) WRITTEN AGREEMENT.—Section 327(c) of title 23, United 

States Code, is amended— 

(1) in paragraph (3)(D) by striking the period at the end 

and inserting a semicolon; and 

(2) by adding at the end the following: 

‘‘(4) require the State to provide to the Secretary any information the Secretary considers necessary to ensure that the 

State is adequately carrying out the responsibilities assigned to 

the State; 

‘‘(5) have a term of not more than 5 years; and 

‘‘(6) be renewable.’’. 

(e) CONFORMING AMENDMENT.—Section 327(e) of title 23, 

United States Code, is amended by striking ‘‘subsection (i)’’ and inserting ‘‘subsection (j)’’. 

(f) AUDITS.—Section 327(g)(1)(B) of title 23, United States Code, 

is amended by striking ‘‘subsequent year’’ and inserting ‘‘of the third 

and fourth years’’. 

(g) MONITORING.—Section 327 of title 23, United States Code, 

is amended— 

(1) by redesignating subsections (h) and (i) as subsections 

(i) and (j), respectively; and 

(2) by inserting after subsection (g) the following: 

‘‘(h) MONITORING.—After the fourth year of the participation of 

a State in the program, the Secretary shall monitor compliance by 

the State with the written agreement, including the provision by the 

State of financial resources to carry out the written agreement.’’. 

(h) TERMINATION.—Section 327(j) of title 23, United States 

Code (as so redesignated), is amended to read as follows: 

‘‘(j) TERMINATION.— 

‘‘(1) TERMINATION BY THE SECRETARY.—The Secretary may 

terminate the participation of any State in the program if— 

‘‘(A) the Secretary determines that the State is not adequately carrying out the responsibilities assigned to the 

State; 

‘‘(B) the Secretary provides to the State— 

‘‘(i) notification of the determination of noncompliance; and 

‘‘(ii) 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 

‘‘(C) the State, after the notification and period provided under subparagraph (B), fails to take satisfactory 

corrective action, as determined by the Secretary. 

‘‘(2) TERMINATION BY THE STATE.—The State may terminate 

the participation of the State in the program at any time by 

providing to the Secretary a notice by not later than the date 

that is 90 days before the date of termination, and subject to 

such terms and conditions as the Secretary may provide.’’. 

(i) CLERICAL AMENDMENT.—The item relating to section 327 in 

the analysis of title 23, United States Code, is amended to read as 

follows: 

‘‘327. Surface transportation project delivery program.’’. 


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SEC. 1314. APPLICATION OF CATEGORICAL EXCLUSIONS FOR 

MULTIMODAL PROJECTS. 

(a) IN GENERAL.—Section 304 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 304. Application of categorical exclusions for multimodal 

projects 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

apply: 

‘‘(1) COOPERATING AUTHORITY.—The term ‘cooperating authority’ means a Department of Transportation operating authority that is not the lead authority with respect to a project. 

‘‘(2) LEAD AUTHORITY.—The term ‘lead authority’ means a 

Department of Transportation operating administration or secretarial office that— 

‘‘(A) is the lead authority over a proposed multimodal 

project; and 

‘‘(B) has determined that the components of the project 

that fall under the modal expertise of the lead authority— 

‘‘(i) satisfy the conditions for a categorical exclusion under implementing regulations or procedures of 

the lead authority under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321 et seq.); and 

‘‘(ii) do not require the preparation of an environmental assessment or environmental impact statement 

under that Act. 

‘‘(3) MULTIMODAL PROJECT.—The term ‘multimodal project’ 

has the meaning given the term in section 139(a) of title 23. 

‘‘(b) EXERCISE OF AUTHORITIES.—The authorities granted in 

this section may be exercised for a multimodal project, class of 

projects, or program of projects that are carried out under this title. 

‘‘(c) APPLICATION OF CATEGORICAL EXCLUSIONS FOR

MULTIMODAL PROJECTS.—In considering the environmental impacts 

of a proposed multimodal project, a lead authority may apply a categorical exclusion designated under the implementing regulations or 

procedures of a cooperating authority for other components of the 

project, subject to the conditions that— 

‘‘(1) the multimodal project is funded under 1 grant agreement administered by the lead authority; 

‘‘(2) the multimodal project has components that require the 

expertise of a cooperating authority to assess the environmental 

impacts of the components; 

‘‘(3) the component of the project to be covered by the categorical exclusion of the cooperating authority has independent 

utility; 

‘‘(4) the cooperating authority, in consultation with the lead 

authority— 

‘‘(A) follows implementing regulations or procedures 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.); and 

‘‘(B) determines that a categorical exclusion under that 

Act applies to the components; and 

‘‘(5) the lead authority has determined that— 

‘‘(A) the project, using the categorical exclusions of the 

lead authority and each applicable cooperating authority, 


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does not individually or cumulatively have a significant 

impact on the environment; and 

‘‘(B) extraordinary circumstances do not exist that 

merit additional analysis and documentation in an environmental impact statement or environmental assessment 

required under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.). 

‘‘(d) MODAL COOPERATION.— ‘‘(1) IN GENERAL.—A cooperating authority shall provide 

modal expertise to the lead authority on such aspects of the 

multimodal project in which the cooperating authority has expertise. 

‘‘(2) USE OF CATEGORICAL EXCLUSION.—In a case described 

in paragraph (1), the 1 or more categorical exclusions of a cooperating authority may be applied by the lead authority once 

the cooperating authority reviews the project on behalf of the 

lead authority and determines the project satisfies the conditions for a categorical exclusion under the implementing regulations or procedures of the cooperating authority under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.) and this section.’’. 

(b) CONFORMING AMENDMENT.—The item relating to section 304 

in the analysis for title 49, United States Code, is amended to read 

as follows: 

‘‘304. Application of categorical exclusions for multimodal projects’’. 

SEC. 1315. CATEGORICAL EXCLUSIONS IN EMERGENCIES. 

(a) IN GENERAL.—Not later than 30 days after the date of enactment of this Act, for the repair or reconstruction of any road, 

highway, or bridge that is in operation or under construction when 

damaged by an emergency declared by the Governor of the State 

and concurred in by the Secretary, or for a disaster or emergency 

declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 

the Secretary shall publish a notice of proposed rulemaking to treat 

any such repair or reconstruction activity as a class of action categorically excluded from the requirements relating to environmental 

assessments or environmental impact statements under section 

1508.4 of title 40, Code of Federal Regulations, and section 771.117 

of title 23, Code of Federal Regulations (as in effect on the date of 

enactment of this Act) if such repair or reconstruction activity is— 

(1) in the same location with the same capacity, dimensions, and design as the original road, highway, or bridge as 

before the declaration described in this section; and 

(2) commenced within a 2-year period beginning on the 

date of a declaration described in this section. 

(b) RULEMAKING.— 

(1) IN GENERAL.—The Secretary shall ensure that the rulemaking helps to conserve Federal resources and protects public 

safety and health by providing for periodic evaluations to determine if reasonable alternatives exist to roads, highways, or 

bridges that repeatedly require repair and reconstruction activities. 

(2) REASONABLE ALTERNATIVES.—The reasonable alternatives described in paragraph (1) include actions that could 

reduce the need for Federal funds to be expended on such repair 


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and reconstruction activities, better protect public safety and 

health and the environment, and meet transportation needs as 

described in relevant and applicable Federal, State, local and 

tribal plans. 

SEC. 1316. CATEGORICAL EXCLUSIONS FOR PROJECTS WITHIN THE 

RIGHT-OF-WAY. 

(a) IN GENERAL.—The Secretary shall— 

(1) not later than 180 days after the date of enactment of 

this Act, designate any project (as defined in section 101(a) of 

title 23, United States Code) within an existing operational 

right-of-way as an action categorically excluded from the requirements relating to environmental assessments or environmental impact statements under section 1508.4 of title 40, Code 

of Federal Regulations, and section 771.117(c) of title 23, Code 

of Federal Regulations; and 

(2) not later than 150 days after the date of enactment of 

this Act, promulgate regulations to carry out paragraph (1). 

(b) DEFINITION OF AN OPERATIONAL RIGHT-OF-WAY.—In this 

section, the term ‘‘operational right-of-way’’ means all real property 

interests acquired for the construction, operation, or mitigation of a 

project (as defined in section 101(a) of title 23, United States Code), 

including the locations of the roadway, bridges, interchanges, culverts, drainage, clear zone, traffic control signage, landscaping, and 

any rest areas with direct access to a controlled access highway. 

SEC. 1317. CATEGORICAL EXCLUSION FOR PROJECTS OF LIMITED FEDERAL ASSISTANCE. 

Not later than 180 days after the date of enactment of this Act, 

the Secretary shall— 

(1) designate as an action categorically excluded from the 

requirements relating to environmental assessments or environmental impact statements under section 1508.4 of title 40, Code 

of Federal Regulations, and section 771.117(c) of title 23, Code 

of Federal Regulations, any project— 

(A) that receives less than $5,000,000 of Federal funds; 

or 

(B) with a total estimated cost of not more than 

$30,000,000 and Federal funds comprising less than 15 

percent of the total estimated project cost; and 

(2) not later than 150 days after the date of enactment of 

this Act, promulgate regulations to carry out paragraph (1). 

SEC. 1318. PROGRAMMATIC AGREEMENTS AND ADDITIONAL CATEGORICAL EXCLUSIONS. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, the Secretary shall— 

(1) survey the use by the Department of categorical exclusions in transportation projects since 2005; 

(2) publish a review of the survey that includes a description of— 

(A) the types of actions categorically excluded; and 

(B) any requests previously received by the Secretary 

for new categorical exclusions; and 

(3) solicit requests from State departments of transportation, transit authorities, metropolitan planning organizations, 

or other government agencies for new categorical exclusions. 


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(b) NEW CATEGORICAL EXCLUSIONS.—Not later than 120 days 

after the date of enactment of this Act, the Secretary shall publish 

a notice of proposed rulemaking to propose new categorical exclusions received by the Secretary under subsection (a), to the extent 

that the categorical exclusions meet the criteria for a categorical exclusion under section 1508.4 of title 40, Code of Federal Regulations, and section 771.117(a) of title 23, Code of Federal Regulations 

(as those regulations are in effect on the date of the notice). 

(c) ADDITIONAL ACTIONS.—The Secretary shall issue a proposed 

rulemaking to move the following types of actions from subsection 

(d) of section 771.117 of title 23, Code of Federal Regulations (as in 

effect on the date of enactment of this Act), to subsection (c) of that 

section, to the extent that such movement complies with the criteria 

for a categorical exclusion under section 1508.4 of title 40, Code of 

Federal Regulations (as in effect on the date of enactment of this 

Act): 

(1) Modernization of a highway by resurfacing, restoration, 

rehabilitation, reconstruction, adding shoulders, or adding auxiliary lanes (including parking, weaving, turning, and climbing). 

(2) Highway safety or traffic operations improvement 

projects, including the installation of ramp metering control devices and lighting. 

(3) Bridge rehabilitation, reconstruction, or replacement or 

the construction of grade separation to replace existing at-grade 

railroad crossings. 

(d) PROGRAMMATIC AGREEMENTS.— 

(1) IN GENERAL.—The Secretary shall seek opportunities to 

enter into programmatic agreements with the States that establish efficient administrative procedures for carrying out environmental and other required project reviews. 

(2) INCLUSIONS.—Programmatic agreements authorized 

under paragraph (1) may include agreements that allow a State 

to determine on behalf of the Federal Highway Administration 

whether a project is categorically excluded from the preparation 

of an environmental assessment or environmental impact statement under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.). 

(3) DETERMINATIONS.—An agreement described in paragraph (2) may include determinations by the Secretary of the 

types of projects categorically excluded (consistent with section 

1508.4 of title 40, Code of Federal Regulations) in the State in 

addition to the types listed in subsections (c) and (d) of section 

771.117 of title 23, Code of Federal Regulations (as in effect on 

the date of enactment of this Act). 

SEC. 1319. ACCELERATED DECISIONMAKING IN ENVIRONMENTAL REVIEWS. 

(a) IN GENERAL.—In preparing a final environmental impact 

statement under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.), if the lead agency modifies the statement in response to comments that are minor and are confined to factual corrections or explanations of why the comments do not warrant additional agency response, the lead agency may write on errata sheets 

attached to the statement instead of rewriting the draft statement, 

subject to the condition that the errata sheets— 


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(1) cite the sources, authorities, or reasons that support the 

position of the agency; and 

(2) if appropriate, indicate the circumstances that would 

trigger agency reappraisal or further response. 

(b) INCORPORATION.—To the maximum extent practicable, the 

lead agency shall expeditiously develop a single document that consists of a final environmental impact statement and a record of decision, unless— 

(1) the final environmental impact statement makes substantial changes to the proposed action that are relevant to environmental or safety concerns; or 

(2) there are significant new circumstances or information 

relevant to environmental concerns and that bear on the proposed action or the impacts of the proposed action. 

SEC. 1320. MEMORANDA OF AGENCY AGREEMENTS FOR EARLY COORDINATION. 

(a) IN GENERAL.—It is the sense of Congress that— 

(1) the Secretary and other Federal agencies with relevant 

jurisdiction in the environmental review process should cooperate with each other and other agencies on environmental review 

and project delivery activities at the earliest practicable time to 

avoid delays and duplication of effort later in the process, head 

off potential conflicts, and ensure that planning and project development decisions reflect environmental values; and 

(2) such cooperation should include the development of policies and the designation of staff that advise planning agencies 

or project sponsors of studies or other information foreseeably 

required for later Federal action and early consultation with 

appropriate State and local agencies and Indian tribes. 

(b) TECHNICAL ASSISTANCE.—If requested at any time by a 

State or local planning agency, the Secretary and other Federal 

agencies with relevant jurisdiction in the environmental review 

process, shall, to the extent practicable and appropriate, as determined by the agencies, provide technical assistance to the State or 

local planning agency on accomplishing the early coordination activities described in subsection (d). 

(c) MEMORANDUM OF AGENCY AGREEMENT.—If requested at any 

time by a State or local planning agency, the lead agency, in consultation with other Federal agencies with relevant jurisdiction in 

the environmental review process, may establish memoranda of 

agreement with the project sponsor, State, and local governments 

and other appropriate entities to accomplish the early coordination 

activities described in subsection (d). 

(d) EARLY COORDINATION ACTIVITIES.—Early coordination activities shall include, to the maximum extent practicable, the following: 

(1) Technical assistance on identifying potential impacts 

and mitigation issues in an integrated fashion. 

(2) The potential appropriateness of using planning products and decisions in later environmental reviews. 

(3) The identification and elimination from detailed study 

in the environmental review process of the issues that are not 

significant or that have been covered by prior environmental reviews. 


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(4) The identification of other environmental review and 

consultation requirements so that the lead and cooperating 

agencies may prepare, as appropriate, other required analyses 

and studies concurrently with planning activities. 

(5) The identification by agencies with jurisdiction over any 

permits related to the project of any and all relevant information that will reasonably be required for the project. 

(6) The reduction of duplication between requirements 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.) and State and local planning and environmental review requirements, unless the agencies are specifically 

barred from doing so by applicable law. 

(7) Timelines for the completion of agency actions during 

the planning and environmental review processes. 

(8) Other appropriate factors. 

SEC. 1321. ENVIRONMENTAL PROCEDURES INITIATIVE. 

(a) ESTABLISHMENT.—For grant programs under which funds 

are distributed by formula by the Department, the Secretary shall 

establish an initiative to review and develop consistent procedures 

for environmental permitting and procurement requirements that 

apply to a project carried out under title 23, United States Code, or 

chapter 53 of title 49, United States Code. 

(b) REPORT.—The Secretary shall publish the results of the initiative described in subsection (a) in an electronically accessible format. 

SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND APPROVALS FOR THE PURPOSE OF ELIMINATING DUPLICATION 

OF ENVIRONMENTAL REVIEWS. 

For environmental reviews and approvals carried out on 

projects funded under title 23, United States Code, the Comptroller 

General of the United States shall— 

(1) review State laws and procedures for conducting environmental reviews with regard to such projects and identify the 

States that have environmental laws that provide environmental protections and opportunities for public involvement 

that are equivalent to those provided by Federal environmental 

laws; 

(2) determine the frequency and cost of environmental reviews carried out at the Federal level that are duplicative of 

State reviews that provide equivalent environmental protections 

and opportunities for public involvement; and 

(3) not later than 2 years after the date of enactment of this 

Act, submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that describes the results of the review and determination made under 

this section. 

SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY. 

(a) COMPLETION TIME ASSESSMENTS AND REPORTS.— 

(1) IN GENERAL.—For projects funded under title 23, United 

States Code, the Secretary shall compare— 

(A)(i) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated after calendar year 2005; to 


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(ii) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated during a period prior to calendar year 

2005; and 

(B)(i) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated during the period beginning on January 1, 

2005, and ending on the date of enactment of this Act; to 

(ii) the completion times of categorical exclusions, environmental assessments, and environmental impact statements initiated after the date of enactment of this Act. 

(2) REPORT.—The Secretary shall submit to the Committee 

on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of 

the Senate— 

(A) not later than 1 year after the date of enactment of 

this Act, a report that— 

(i) describes the results of the review conducted 

under paragraph (1)(A); and 

(ii) identifies any change in the timing for completions, including the reasons for any such change and 

the reasons for delays in excess of 5 years; and 

(B) not later than 5 years after the date of enactment 

of this Act, a report that— 

(i) describes the results of the review conducted 

under paragraph (1)(B); and 

(ii) identifies any change in the timing for completions, including the reasons for any such change and 

the reasons for delays in excess of 5 years. 

(b) ADDITIONAL REPORT.—Not later than 2 years after the date 

of enactment of this Act, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works 

of the Senate a report on the types and justification for the additional categorical exclusions granted under the authority provided 

under sections 1316 and 1317. 

(c) GAO REPORT.—The Comptroller General of the United 

States shall— 

(1) assess the reforms carried out under this subtitle (including the amendments made by this subtitle); and 

(2) not later than 5 years after the date of enactment of this 

Act, submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a report that describes the results of the assessment. 

(d) INSPECTOR GENERAL REPORT.—The Inspector General of the 

Department of Transportation shall— 

(1) assess the reforms carried out under this subtitle (including the amendments made by this subtitle); and 

(2) submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on 

Environment and Public Works of the Senate— 

(A) not later than 2 years after the date of enactment 

of this Act, an initial report of the findings of the Inspector 

General; and 


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(B) not later than 4 years after the date of enactment 

of this Act, a final report of the findings. 

Subtitle D—Highway Safety 

SEC. 1401. JASON’S LAW. 

(a) IN GENERAL.—It is the sense of Congress that it is a national priority to address projects under this section for the shortage 

of long-term parking for commercial motor vehicles on the National 

Highway System to improve the safety of motorized and nonmotorized users and for commercial motor vehicle operators. 

(b) ELIGIBLE PROJECTS.—Eligible projects under this section are 

those that— 

(1) serve the National Highway System; and 

(2) may include the following: 

(A) Constructing safety rest areas (as defined in section 

120(c) of title 23, United States Code) that include parking 

for commercial motor vehicles. 

(B) Constructing commercial motor vehicle parking facilities adjacent to commercial truck stops and travel plazas. 

(C) Opening existing facilities to commercial motor vehicle parking, including inspection and weigh stations and 

park-and-ride facilities. 

(D) Promoting the availability of publicly or privately 

provided commercial motor vehicle parking on the National 

Highway System using intelligent transportation systems 

and other means. 

(E) Constructing turnouts along the National Highway 

System for commercial motor vehicles. 

(F) Making capital improvements to public commercial 

motor vehicle parking facilities currently closed on a seasonal basis to allow the facilities to remain open yearround. 

(G) Improving the geometric design of interchanges on 

the National Highway System to improve access to commercial motor vehicle parking facilities. 

(c) SURVEY AND COMPARATIVE ASSESSMENT.— 

(1) IN GENERAL.—Not later than 18 months after the date 

of enactment of this Act, the Secretary, in consultation with relevant State motor carrier safety personnel, shall conduct a survey of each State— 

(A) to evaluate the capability of the State to provide 

adequate parking and rest facilities for commercial motor 

vehicles engaged in interstate transportation; 

(B) to assess the volume of commercial motor vehicle 

traffic in the State; and 

(C) to develop a system of metrics to measure the adequacy of commercial motor vehicle parking facilities in the 

State. 

(2) RESULTS.—The results of the survey under paragraph 

(1) shall be made available to the public on the website of the 

Department of Transportation. 


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(3) PERIODIC UPDATES.—The Secretary shall periodically 

update the survey under this subsection. 

(d) ELECTRIC VEHICLE AND NATURAL GAS VEHICLE INFRA- STRUCTURE.— (1) IN GENERAL.—Except as provided in paragraph (2), a 

State may establish electric vehicle charging stations or natural 

gas vehicle refueling stations for the use of battery-powered or 

natural gas-fueled trucks or other motor vehicles at any parking 

facility funded or authorized under this Act or title 23, United 

States Code. 

(2) EXCEPTION.—Electric vehicle battery charging stations 

or natural gas vehicle refueling stations may not be established 

or supported under paragraph (1) if commercial establishments 

serving motor vehicle users are prohibited by section 111 of title 

23, United States Code. 

(3) FUNDS.—Charging or refueling stations described in 

paragraph (1) shall be eligible for the same funds as are available for the parking facilities in which the stations are located. 

(e) TREATMENT OF PROJECTS.—Notwithstanding any other provision of law, projects funded through the authority provided under 

this section shall be treated as projects on a Federal-aid highway 

under chapter 1 of title 23, United States Code. 

SEC. 1402. OPEN CONTAINER REQUIREMENTS. 

Section 154(c) of title 23, United States Code, is amended— 

(1) by striking paragraph (2) and inserting the following: 

‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.— ‘‘(A) RESERVATION OF FUNDS.—On October 1, 2011, 

and each October 1 thereafter, if a State has not enacted 

or is not enforcing an open container law described in subsection (b), the Secretary shall reserve an amount equal to 

2.5 percent of the funds to be apportioned to the State on 

that date under each of paragraphs (1) and (2) of section 

104(b) until the State certifies to the Secretary the means 

by which the State will use those reserved funds in accordance with subparagraphs (A) and (B) of paragraph (1) and 

paragraph (3). 

‘‘(B) TRANSFER OF FUNDS.—As soon as practicable after 

the date of receipt of a certification from a State under subparagraph (A), the Secretary shall— 

‘‘(i) transfer the reserved funds identified by the 

State for use as described in subparagraphs (A) and 

(B) of paragraph (1) to the apportionment of the State 

under section 402; and 

‘‘(ii) release the reserved funds identified by the 

State as described in paragraph (3).’’; 

(2) by striking paragraph (3) and inserting the following: 

‘‘(3) USE FOR HIGHWAY SAFETY IMPROVEMENT PROGRAM.— 

‘‘(A) IN GENERAL.—A State may elect to use all or a 

portion of the funds transferred under paragraph (2) for activities eligible under section 148. 

‘‘(B) STATE DEPARTMENTS OF TRANSPORTATION.—If the 

State makes an election under subparagraph (A), the funds 

shall be transferred to the department of transportation of 

the State, which shall be responsible for the administration 

of the funds.’’; and 


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(3) by striking paragraph (5) and inserting the following: 

‘‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.—The 

amount to be transferred under paragraph (2) may be derived 

from the following: 

‘‘(A) The apportionment of the State under section 

104(b)(l). 

‘‘(B) The apportionment of the State under section 

104(b)(2).’’. 

SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED OR DRIVING UNDER THE INFLUENCE. 

(a) DEFINITIONS.—Section 164(a) of title 23, United States 

Code, is amended— 

(1) by striking paragraph (3); 

(2) by redesignating paragraphs (4) and (5) as paragraphs 

(3) and (4), respectively; and 

(3) in paragraph (4) (as so redesignated) by striking subparagraph (A) and inserting the following: 

‘‘(A) receive— 

‘‘(i) a suspension of all driving privileges for not 

less than 1 year; or 

‘‘(ii) a suspension of unlimited driving privileges 

for 1 year, allowing for the reinstatement of limited 

driving privileges subject to restrictions and limited exemptions as established by State law, if an ignition 

interlock device is installed for not less than 1 year on 

each of the motor vehicles owned or operated, or both, 

by the individual;’’. 

(b) TRANSFER OF FUNDS.—Section 164(b) of title 23, United 

States Code, is amended— 

(1) by striking paragraph (2) and inserting the following: 

‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.— 

‘‘(A) RESERVATION OF FUNDS.—On October 1, 2011, 

and each October 1 thereafter, if a State has not enacted 

or is not enforcing a repeat intoxicated driver law, the Secretary shall reserve an amount equal to 2.5 percent of the 

funds to be apportioned to the State on that date under 

each of paragraphs (1) and (2) of section 104(b) until the 

State certifies to the Secretary the means by which the 

States will use those reserved funds among the uses authorized under subparagraphs (A) and (B) of paragraph (1), 

and paragraph (3). 

‘‘(B) TRANSFER OF FUNDS.—As soon as practicable after 

the date of receipt of a certification from a State under subparagraph (A), the Secretary shall— 

‘‘(i) transfer the reserved funds identified by the 

State for use as described in subparagraphs (A) and 

(B) of paragraph (1) to the apportionment of the State 

under section 402; and 

‘‘(ii) release the reserved funds identified by the 

State as described in paragraph (3).’’; 

(2) by striking paragraph (3) and inserting the following: 

‘‘(3) USE FOR HIGHWAY SAFETY IMPROVEMENT PROGRAM.— 


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‘‘(A) IN GENERAL.—A State may elect to use all or a 

portion of the funds transferred under paragraph (2) for activities eligible under section 148. 

‘‘(B) STATE DEPARTMENTS OF TRANSPORTATION.—If the 

State makes an election under subparagraph (A), the funds 

shall be transferred to the department of transportation of 

the State, which shall be responsible for the administration 

of the funds.’’; and 

(3) by striking paragraph (5) and inserting the following: 

‘‘(5) DERIVATION OF AMOUNT TO BE TRANSFERRED.—The 

amount to be transferred under paragraph (2) may be derived 

from the following: 

‘‘(A) The apportionment of the State under section 

104(b)(1). 

‘‘(B) The apportionment of the State under section 

104(b)(2).’’. 

SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS. 

(a) VEHICLE WEIGHT LIMITATIONS.—Section 127(a)(1) of title 

23, United States Code, is amended by striking ‘‘No funds shall be 

apportioned in any fiscal year under section 104(b)(1) of this title 

to any State which’’ and inserting ‘‘The Secretary shall withhold 50 

percent of the apportionment of a State under section 104(b)(1) in 

any fiscal year in which the State’’. 

(b) CONTROL OF JUNKYARDS.—Section 136 of title 23, United 

States Code, is amended— 

(1) in subsection (b), in the first sentence— 

(A) by striking ‘‘10 per centum’’ and inserting ‘‘7 percent’’; and 

(B) by striking ‘‘section 104 of this title’’ and inserting 

‘‘paragraphs (1) through (5) of section 104(b)’’; and 

(2) by adding at the end the following: 

‘‘(n) DEFINITIONS.—For purposes of this section, the terms ‘primary system’ and ‘Federal-aid primary system’ mean any highway 

that is on the National Highway System, which includes the Interstate Highway System.’’. 

(c) ENFORCEMENT OF VEHICLE SIZE AND WEIGHT LAWS.—Section 141(b)(2) of title 23, United States Code, is amended— 

(1) by striking ‘‘10 per centum’’ and inserting ‘‘7 percent’’; 

and 

(2) by striking ‘‘section 104 of this title’’ and inserting 

‘‘paragraphs (1) through (5) of section 104(b)’’. 

(d) PROOF OF PAYMENT OF THE HEAVY VEHICLE USE TAX.—Section 141(c) of title 23, United States Code, is amended— 

(1) by striking ‘‘section 104(b)(4)’’ each place it appears and 

inserting ‘‘section 104(b)(1)’’; and 

(2) in the first sentence by striking ‘‘25 per centum’’ and inserting ‘‘8 percent’’. 

(e) USE OF SAFETY BELTS.—Section 153(h) of title 23, United 

States Code, is amended— 

(1) by striking paragraph (1); 

(2) by redesignating paragraph (2) as paragraph (1); 

(3) in paragraph (1) (as so redesignated)— 

(A) by striking the paragraph heading and inserting 

‘‘PRIOR TO FISCAL YEAR 2012’’; and 


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(B) by inserting ‘‘and before October 1, 2011,’’ after 

‘‘September 30, 1994,’’; and 

(4) by inserting after paragraph (1) (as so redesignated) the 

following: 

‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.—If, at any time in 

a fiscal year beginning after September 30, 2011, a State does 

not have in effect a law described in subsection (a)(2), the Secretary shall transfer an amount equal to 2 percent of the funds 

apportioned to the State for the succeeding fiscal year under 

each of paragraphs (1) through (3) of section 104(b) to the apportionment of the State under section 402.’’. 

(f) NATIONAL MINIMUM DRINKING AGE.—Section 158(a)(1) of 

title 23, United States Code, is amended— 

(1) by striking ‘‘The Secretary’’ and inserting the following: 

‘‘(A) FISCAL YEARS BEFORE 2012.—The Secretary’’; and 

(2) by adding at the end the following: 

‘‘(B) FISCAL YEAR 2012 AND THEREAFTER.—For fiscal 

year 2012 and each fiscal year thereafter, the amount to be 

withheld under this section shall be an amount equal to 8 

percent of the amount apportioned to the noncompliant 

State, as described in subparagraph (A), under paragraphs 

(1) and (2) of section 104(b).’’. 

(g) DRUG OFFENDERS.—Section 159 of title 23, United States 

Code, is amended— 

(1) in subsection (a)— 

(A) by striking paragraph (1); 

(B) by redesignating paragraph (2) as paragraph (1); 

(C) in paragraph (1) (as so redesignated) by striking 

‘‘(including any amounts withheld under paragraph (1))’’; 

and 

(D) by inserting after paragraph (1) (as so redesignated) the following: 

‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.—The Secretary 

shall withhold an amount equal to 8 percent of the amount required to be apportioned to any State under each of paragraphs 

(1) and (2) of section 104(b) on the first day of each fiscal year 

beginning after September 30, 2011, if the State fails to meet 

the requirements of paragraph (3) on the first day of the fiscal 

year.’’; and 

(2) by striking subsection (b) and inserting the following: 

‘‘(b) EFFECT OF NONCOMPLIANCE.—No funds withheld under 

this section from apportionments to any State shall be available for 

apportionment to that State.’’. 

(h) ZERO TOLERANCE BLOOD ALCOHOL CONCENTRATION FOR

MINORS.—Section 161(a) of title 23, United States Code, is amended— 

(1) by striking paragraph (1); 

(2) by redesignating paragraph (2) as paragraph (1); 

(3) in paragraph (1) (as so redesignated)— 

(A) by striking the paragraph heading and inserting 

‘‘PRIOR TO FISCAL YEAR 2012’’; and 

(B) by inserting ‘‘through fiscal year 2011’’ after ‘‘each 

fiscal year thereafter’’; and 

(4) by inserting after paragraph (1) (as so redesignated) the 

following: 


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‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.—The Secretary 

shall withhold an amount equal to 8 percent of the amount required to be apportioned to any State under each of paragraphs 

(1) and (2) of section 104(b) on October 1, 2011, and on October 

1 of each fiscal year thereafter, if the State does not meet the 

requirement of paragraph (3) on that date.’’. 

(i) OPERATION OF MOTOR VEHICLES BY INTOXICATED PER- SONS.—Section 163(e) of title 23, United States Code, is amended by 

striking paragraphs (1) and (2) and inserting the following: 

‘‘(1) FISCAL YEARS 2007 THROUGH 2011.—On October 1, 2006, 

and October 1 of each fiscal year thereafter through fiscal year 

2011, if a State has not enacted or is not enforcing a law described in subsection (a), the Secretary shall withhold an 

amount equal to 8 percent of the amounts to be apportioned to 

the State on that date under each of paragraphs (1), (3), and 

(4) of section 104(b). 

‘‘(2) FISCAL YEAR 2012 AND THEREAFTER.—On October 1, 

2011, and October 1 of each fiscal year thereafter, if a State has 

not enacted or is not enforcing a law described in subsection (a), 

the Secretary shall withhold an amount equal to 6 percent of 

the amounts to be apportioned to the State on that date under 

each of paragraphs (1) and (2) of section 104(b).’’. 

(j) COMMERCIAL DRIVER’S LICENSE.—Section 31314 of title 49, 

United States Code, is amended— 

(1) by redesignating subsection (c) as subsection (d); and 

(2) by inserting after subsection (b) the following: 

‘‘(c) PENALTIES IMPOSED IN FISCAL YEAR 2012 AND THERE- AFTER.—Effective beginning on October 1, 2011— 

‘‘(1) the penalty for the first instance of noncompliance by 

a State under this section shall be not more than an amount 

equal to 4 percent of funds required to be apportioned to the 

noncompliant State under paragraphs (1) and (2) of section 

104(b) of title 23; and 

‘‘(2) the penalty for subsequent instances of noncompliance 

shall be not more than an amount equal to 8 percent of funds 

required to be apportioned to the noncompliant State under 

paragraphs (1) and (2) of section 104(b) of title 23.’’. 

SEC. 1405. HIGHWAY WORKER SAFETY. 

Not later than 60 days after the date of enactment of this Act, 

the Secretary shall modify section 630.1108(a) of title 23, Code of 

Federal Regulations (as in effect on the date of enactment of this 

Act), to ensure that— 

(1) at a minimum, positive protective measures are used to 

separate workers on highway construction projects from motorized traffic in all work zones conducted under traffic in areas 

that offer workers no means of escape (such as tunnels and 

bridges), unless an engineering study determines otherwise; 

(2) temporary longitudinal traffic barriers are used to protect workers on highway construction projects in long-duration 

stationary work zones when the project design speed is anticipated to be high and the nature of the work requires workers 

to be within 1 lane-width from the edge of a live travel lane, 

unless— 

(A) an analysis by the project sponsor determines otherwise; or 


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(B) the project is outside of an urbanized area and the 

annual average daily traffic load of the applicable road is 

less than 100 vehicles per hour; and 

(3) when positive protective devices are necessary for highway construction projects, those devices are paid for on a unitpay basis, unless doing so would create a conflict with innovative contracting approaches, such as design-build or some performance-based contracts under which the contractor is paid to 

assume a certain risk allocation and payment is generally made 

on a lump-sum basis. 

Subtitle E—Miscellaneous 

SEC. 1501. REAL-TIME RIDESHARING. 

Paragraph (3) of section 101(a) of title 23, United States Code 

(as redesignated by section 1103(a)(2)), is amended by striking ‘‘and 

designating existing facilities for use for preferential parking for 

carpools’’ and inserting ‘‘designating existing facilities for use for 

preferential parking for carpools, and real-time ridesharing projects, 

such as projects where drivers, using an electronic transfer of funds, 

recover costs directly associated with the trip provided through the 

use of location technology to quantify those direct costs, subject to 

the condition that the cost recovered does not exceed the cost of the 

trip provided’’. 

SEC. 1502. PROGRAM EFFICIENCIES. 

The first sentence of section 102(b) of title 23, United States 

Code, is amended by striking ‘‘made available for such engineering’’ 

and inserting ‘‘reimbursed for the preliminary engineering’’. 

SEC. 1503. PROJECT APPROVAL AND OVERSIGHT. 

(a) IN GENERAL.—Section 106 of title 23, United States Code, 

is amended— 

(1) in subsection (a)(2) by inserting ‘‘recipient’’ before ‘‘formalizing’’; 

(2) in subsection (c)— 

(A) in paragraph (1)— 

(i) in the heading, by striking ‘‘NON-INTERSTATE’’; 

(ii) by striking ‘‘but not on the Interstate System’’; 

and inserting ‘‘, including projects on the Interstate 

System’’; and 

(iii) by striking ‘‘of projects’’ and all that follows 

through the period at the end and inserting ‘‘with respect to the projects unless the Secretary determines 

that the assumption is not appropriate.’’; and 

(B) by striking paragraph (4) and inserting the following: 

‘‘(4) LIMITATION ON INTERSTATE PROJECTS.— 

‘‘(A) IN GENERAL.—The Secretary shall not assign any 

responsibilities to a State for projects the Secretary determines to be in a high risk category, as defined under subparagraph (B). 

‘‘(B) HIGH RISK CATEGORIES.—The Secretary may define the high risk categories under this subparagraph on a 

national basis, a State-by-State basis, or a national and 


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State-by-State basis, as determined to be appropriate by the 

Secretary.’’; 

(3) in subsection (e)— 

(A) in paragraph (1)(A)— 

(i) in the matter preceding clause (i)— 

(I) by striking ‘‘concept’’ and inserting ‘‘planning’’; and 

(II) by striking ‘‘multidisciplined’’ and inserting ‘‘multidisciplinary’’; and 

(ii) by striking clause (i) and inserting the following: 

‘‘(i) providing the needed functions safely, reliably, 

and at the lowest overall lifecycle cost;’’; 

(B) in paragraph (2)— 

(i) in the matter preceding subparagraph (A) by 

striking ‘‘or other cost-reduction analysis’’; 

(ii) in subparagraph (A)— 

(I) by striking ‘‘Federal-aid system’’ and inserting ‘‘National Highway System receiving Federal 

assistance’’; and 

(II) by striking ‘‘$25,000,000’’ and inserting 

‘‘$50,000,000’’; and 

(iii) in subparagraph (B)— 

(I) by inserting ‘‘on the National Highway System receiving Federal assistance’’ after ‘‘a bridge 

project’’; and 

(II) by striking ‘‘$20,000,000’’ and inserting 

‘‘$40,000,000’’; and 

(C) by striking paragraph (4) and inserting the following: 

‘‘(4) REQUIREMENTS.— 

‘‘(A) VALUE ENGINEERING PROGRAM.—The State shall 

develop and carry out a value engineering program that— 

‘‘(i) establishes and documents value engineering 

program policies and procedures; 

‘‘(ii) ensures that the required value engineering 

analysis is conducted before completing the final design of a project; 

‘‘(iii) ensures that the value engineering analysis 

that is conducted, and the recommendations developed 

and implemented for each project, are documented in a 

final value engineering report; and 

‘‘(iv) monitors, evaluates, and annually submits to 

the Secretary a report that describes the results of the 

value analyses that are conducted and the recommendations implemented for each of the projects described in paragraph (2) that are completed in the 

State. 

‘‘(B) BRIDGE PROJECTS.—The value engineering analysis for a bridge project under paragraph (2) shall— 

‘‘(i) include bridge superstructure and substructure 

requirements based on construction material; and 

‘‘(ii) be evaluated by the State— 


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‘‘(I) on engineering and economic bases, taking 

into consideration acceptable designs for bridges; 

and 

‘‘(II) using an analysis of lifecycle costs and 

duration of project construction. 

‘‘(5) DESIGN-BUILD PROJECTS.—A requirement to provide a 

value engineering analysis under this subsection shall not apply 

to a project delivered using the design-build method of construction.’’; 

(4) in subsection (h)— 

(A) in paragraph (1)(B) by inserting ‘‘, including a 

phasing plan when applicable’’ after ‘‘financial plan’’; and 

(B) by striking paragraph (3) and inserting the following: 

‘‘(3) FINANCIAL PLAN.—A financial plan— 

‘‘(A) shall be based on detailed estimates of the cost to 

complete the project; 

‘‘(B) shall provide for the annual submission of updates 

to the Secretary that are based on reasonable assumptions, 

as determined by the Secretary, of future increases in the 

cost to complete the project; 

‘‘(C) may include a phasing plan that identifies 

fundable incremental improvements or phases that will address the purpose and the need of the project in the short 

term in the event there are insufficient financial resources 

to complete the entire project. If a phasing plan is adopted 

for a project pursuant to this section, the project shall be 

deemed to satisfy the fiscal constraint requirements in the 

statewide and metropolitan planning requirements in sections 134 and 135; and 

‘‘(D) shall assess the appropriateness of a public-private partnership to deliver the project.’’; and 

(5) by adding at the end the following: 

‘‘(j) USE OF ADVANCED MODELING TECHNOLOGIES.— 

‘‘(1) DEFINITION OF ADVANCED MODELING TECHNOLOGY.—In 

this subsection, the term ‘advanced modeling technology’ means 

an available or developing technology, including 3-dimensional 

digital modeling, that can— 

‘‘(A) accelerate and improve the environmental review 

process; 

‘‘(B) increase effective public participation; 

‘‘(C) enhance the detail and accuracy of project designs; 

‘‘(D) increase safety; 

‘‘(E) accelerate construction, and reduce construction 

costs; or 

‘‘(F) otherwise expedite project delivery with respect to 

transportation projects that receive Federal funding. 

‘‘(2) PROGRAM.—With respect to transportation projects that 

receive Federal funding, the Secretary shall encourage the use 

of advanced modeling technologies during environmental, planning, financial management, design, simulation, and construction processes of the projects. 

‘‘(3) ACTIVITIES.—In carrying out paragraph (2), the Secretary shall— 


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‘‘(A) compile information relating to advanced modeling technologies, including industry best practices with 

respect to the use of the technologies; 

‘‘(B) disseminate to States information relating to advanced modeling technologies, including industry best practices with respect to the use of the technologies; and 

‘‘(C) promote the use of advanced modeling technologies. 

‘‘(4) COMPREHENSIVE PLAN.—The Secretary shall develop 

and publish on the public website of the Department of Transportation a detailed and comprehensive plan for the implementation of paragraph (2).’’. 

(b) REVIEW OF OVERSIGHT PROGRAM.— 

(1) IN GENERAL.—The Secretary shall review the oversight 

program established under section 106(g) of title 23, United 

States Code, to determine the efficacy of the program in monitoring the effective and efficient use of funds authorized to carry 

out title 23, United States Code. 

(2) MINIMUM REQUIREMENTS FOR REVIEW.—At a minimum, 

the review under paragraph (1) shall assess the capability of 

the program to— 

(A) identify projects funded under title 23, United 

States Code, for which there are cost or schedule overruns; 

and 

(B) evaluate the extent of such overruns. 

(3) REPORT TO CONGRESS.—Not later than 2 years after the 

date of enactment of this Act, the Secretary shall transmit to the 

Committee on Transportation and Infrastructure of the House 

of Representatives and the Committee on Environment and 

Public Works of the Senate a report on the results of the review 

conducted under paragraph (1), which shall include recommendations for legislative changes to improve the oversight 

program established under section 106(g) of title 23, United 

States Code. 

(c) TRANSPARENCY AND ACCOUNTABILITY.— 

(1) DATA COLLECTION.—The Secretary shall compile and 

make available on the public website of the Department of 

Transportation the annual expenditure data for funds made 

available under title 23 and chapter 53 of title 49, United 

States Code. 

(2) REQUIREMENTS.—In carrying out paragraph (1), the 

Secretary shall ensure that the data made available on the public website of the Department of Transportation— 

(A) is organized by project and State; 

(B) to the maximum extent practicable, is updated regularly to reflect the current status of obligations, expenditures, and Federal-aid projects; and 

(C) can be searched and downloaded by users of the 

website. 

(3) REPORT TO CONGRESS.—The Secretary shall annually 

submit to the Committee on Transportation and Infrastructure 

of the House of Representatives and the Committee on Environment and Public Works and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing a sumVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00169 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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mary of the data described in paragraph (1) for the 1-year period ending on the date on which the report is submitted. 

SEC. 1504. STANDARDS. 

Section 109 of title 23, United States Code, is amended by adding at the end the following: 

‘‘(r) PAVEMENT MARKINGS.—The Secretary shall not approve 

any pavement markings project that includes the use of glass beads 

containing more than 200 parts per million of arsenic or lead, as 

determined in accordance with Environmental Protection Agency 

testing methods 3052, 6010B, or 6010C.’’. 

SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE 

INTERSTATE SYSTEM. 

Section 111 of title 23, United States Code, is amended by adding at the end the following: 

‘‘(e) JUSTIFICATION REPORTS.—If the Secretary requests or requires a justification report for a project that would add a point of 

access to, or exit from, the Interstate System, the Secretary may permit a State transportation department to approve the report.’’. 

SEC. 1506. CONSTRUCTION. 

Section 114(b) of title 23, United States Code, is amended— 

(1) in subsection (b)— 

(A) by striking paragraph (1) and inserting the following: 

‘‘(1) LIMITATION ON CONVICT LABOR.—Convict labor shall 

not be used in construction of Federal-aid highways or portions 

of Federal-aid highways unless the labor is performed by convicts who are on parole, supervised release, or probation.’’; and 

(B) in paragraph (3) by inserting ‘‘in existence during 

that period’’ after ‘‘located on a Federal-aid system’’; and 

(2) by adding at the end the following: 

‘‘(d) VETERANS EMPLOYMENT.—– ‘‘(1) IN GENERAL.—Subject to paragraph (2), a recipient of 

Federal financial assistance under this chapter shall, to the extent practicable, encourage contractors working on a highway 

project funded using the assistance to make a best faith effort 

in the hiring or referral of laborers on any project for the construction of a highway to veterans (as defined in section 2108 

of title 5) who have the requisite skills and abilities to perform 

the construction work required under the contract. 

‘‘(2) ADMINISTRATION.—This subsection shall not— 

‘‘(A) apply to projects subject to section 140(d); or 

‘‘(B) be administered or enforced in any manner that 

would require an employer to give a preference to any veteran over any equally qualified applicant who is a member 

of any racial or ethnic minority, a female, or any equally 

qualified former employee.’’. 

SEC. 1507. MAINTENANCE. 

Section 116 of title 23, United States Code, is amended— 

(1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively; 

(2) by inserting before subsection (b) (as so redesignated) 

the following: 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

apply: 


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‘‘(1) PREVENTIVE MAINTENANCE.—The term ‘preventive 

maintenance’ includes pavement preservation programs and activities. 

‘‘(2) PAVEMENT PRESERVATION PROGRAMS AND ACTIVITIES.— 

The term ‘pavement preservation programs and activities’ 

means programs and activities employing a network level, longterm strategy that enhances pavement performance by using an 

integrated, cost-effective set of practices that extend pavement 

life, improve safety, and meet road user expectations.’’; 

(3) in subsection (b) (as so redesignated)— 

(A) in the first sentence, by inserting ‘‘or other direct recipient’’ before ‘‘to maintain’’; and 

(B) by striking the second sentence; 

(4) by striking subsection (c) (as so redesignated) and inserting the following: 

‘‘(c) AGREEMENT.—In any State in which the State transportation department or other direct recipient is without legal authority 

to maintain a project described in subsection (b), the transportation 

department or direct recipient shall enter into a formal agreement 

with the appropriate officials of the county or municipality in which 

the project is located to provide for the maintenance of the project.’’; 

and 

(5) in the first sentence of subsection (d) (as so redesignated) by inserting ‘‘or other direct recipient’’ after ‘‘State transportation department’’. 

SEC. 1508. FEDERAL SHARE PAYABLE. 

Section 120 of title 23, United States Code, is amended— 

(1) in the first sentence of subsection (c)(1)— 

(A) by inserting ‘‘maintaining minimum levels of 

retroreflectivity of highway signs or pavement markings,’’ 

after ‘‘traffic control signalization,’’; 

(B) by inserting ‘‘shoulder and centerline rumble strips 

and stripes,’’ after ‘‘pavement marking,’’; and 

(C) by striking ‘‘Federal-aid systems’’ and inserting 

‘‘Federal-aid programs’’; 

(2) by striking subsection (e) and inserting the following: 

‘‘(e) EMERGENCY RELIEF.—The Federal share payable for any 

repair or reconstruction provided for by funds made available under 

section 125 for any project on a Federal-aid highway, including the 

Interstate System, shall not exceed the Federal share payable on a 

project on the system as provided in subsections (a) and (b), except 

that— 

‘‘(1) the Federal share payable for eligible emergency repairs to minimize damage, protect facilities, or restore essential 

traffic accomplished within 180 days after the actual occurrence 

of the natural disaster or catastrophic failure may amount to 

100 percent of the cost of the repairs; 

‘‘(2) the Federal share payable for any repair or reconstruction of Federal land transportation facilities, Federal land access transportation facilities, and tribal transportation facilities 

may amount to 100 percent of the cost of the repair or reconstruction; 

‘‘(3) the Secretary shall extend the time period in paragraph 

(1) taking into consideration any delay in the ability of the 


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State to access damaged facilities to evaluate damage and the 

cost of repair; and 

‘‘(4) the Federal share payable for eligible permanent repairs to restore damaged facilities to predisaster condition may 

amount to 90 percent of the cost of the repairs if the eligible expenses incurred by the State due to natural disasters or catastrophic failures in a Federal fiscal year exceeds the annual apportionment of the State under section 104 for the fiscal year in 

which the disasters or failures occurred.’’; 

(3) by striking subsection (g) and redesignating subsections 

(h) through (l) as subsections (g) through (k), respectively; 

(4) in subsection (i)(1)(A) (as redesignated by paragraph 

(3)) by striking ‘‘and the Appalachian development highway system program under section 14501 of title 40’’; and 

(5) by striking subsections (j) and (k) (as redesignated by 

paragraph (3)) and inserting the following: 

‘‘(j) USE OF FEDERAL AGENCY FUNDS.—Notwithstanding any 

other provision of law, any Federal funds other than those made 

available under this title and title 49 may be used to pay the nonFederal share of the cost of any transportation project that is within, adjacent to, or provides access to Federal land, the Federal share 

of which is funded under this title or chapter 53 of title 49. 

‘‘(k) USE OF FEDERAL LAND AND TRIBAL TRANSPORTATION

FUNDS.—Notwithstanding any other provision of law, the funds authorized to be appropriated to carry out the tribal transportation 

program under section 202 and the Federal lands transportation 

program under section 203 may be used to pay the non-Federal 

share of the cost of any project that is funded under this title or 

chapter 53 of title 49 and that provides access to or within Federal 

or tribal land.’’. 

SEC. 1509. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS. 

(a) IN GENERAL.—Section 126 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 126. Transferability of Federal-aid highway funds 

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, 

subject to subsection (b), a State may transfer from an apportionment under section 104(b) not to exceed 50 percent of the amount 

apportioned for the fiscal year to any other apportionment of the 

State under that section. 

‘‘(b) APPLICATION TO CERTAIN SET-ASIDES.— ‘‘(1) IN GENERAL.—Funds that are subject to sections 104(d) 

and 133(d) shall not be transferred under this section. 

‘‘(2) FUNDS TRANSFERRED BY STATES.—Funds transferred 

by a State under this section of the funding reserved for the 

State under section 213 for a fiscal year may only come from 

the portion of those funds that are available for obligation in 

any area of the State under section 213(c)(1)(B).’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 1 of 

title 23, United States Code, is amended by striking the item relating to section 126 and inserting the following: 

‘‘126. Transferability of Federal-aid highway funds.’’. 

SEC. 1510. IDLE REDUCTION TECHNOLOGY. 

Section 127(a)(12) of title 23, United States Code, is amended— 


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(1) in subparagraph (B), by striking ‘‘400’’ and inserting 

‘‘550’’; and 

(2) in subparagraph (C)(ii), by striking ‘‘400-pound’’ and inserting ‘‘550-pound’’. 

SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY. 

Section 127 of title 23, United States Code, is amended by inserting at the end the following: 

‘‘(i) SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

this section, a State may issue special permits during an emergency to overweight vehicles and loads that can easily be dismantled or divided if— 

‘‘(A) the President has declared the emergency to be a 

major disaster under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.); 

‘‘(B) the permits are issued in accordance with State 

law; and 

‘‘(C) the permits are issued exclusively to vehicles and 

loads that are delivering relief supplies. 

‘‘(2) EXPIRATION.—A permit issued under paragraph (1) 

shall expire not later than 120 days after the date of the declaration of emergency under subparagraph (A) of that paragraph.’’. 

SEC. 1512. TOLLING. 

(a) AMENDMENT TO TOLLING PROVISION.—Section 129(a) of title 

23, United States Code, is amended to read as follows: 

‘‘(a) BASIC PROGRAM.— 

‘‘(1) AUTHORIZATION FOR FEDERAL PARTICIPATION.—Subject 

to the provisions of this section, Federal participation shall be 

permitted on the same basis and in the same manner as construction of toll-free highways is permitted under this chapter 

in the— 

‘‘(A) initial construction of a toll highway, bridge, or 

tunnel or approach to the highway, bridge, or tunnel; 

‘‘(B) initial construction of 1 or more lanes or other improvements that increase capacity of a highway, bridge, or 

tunnel (other than a highway on the Interstate System) and 

conversion of that highway, bridge, or tunnel to a tolled facility, if the number of toll-free lanes, excluding auxiliary 

lanes, after the construction is not less than the number of 

toll-free lanes, excluding auxiliary lanes, before the construction; 

‘‘(C) initial construction of 1 or more lanes or other improvements that increase the capacity of a highway, bridge, 

or tunnel on the Interstate System and conversion of that 

highway, bridge, or tunnel to a tolled facility, if the number 

of toll-free non-HOV lanes, excluding auxiliary lanes, after 

such construction is not less than the number of toll-free 

non-HOV lanes, excluding auxiliary lanes, before such construction; 


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‘‘(D) reconstruction, resurfacing, restoration, rehabilitation, or replacement of a toll highway, bridge, or tunnel or 

approach to the highway, bridge, or tunnel; 

‘‘(E) reconstruction or replacement of a toll-free bridge 

or tunnel and conversion of the bridge or tunnel to a toll 

facility; 

‘‘(F) reconstruction of a toll-free Federal-aid highway 

(other than a highway on the Interstate System) and conversion of the highway to a toll facility; 

‘‘(G) reconstruction, restoration, or rehabilitation of a 

highway on the Interstate System if the number of toll-free 

non-HOV lanes, excluding auxiliary lanes, after reconstruction, restoration, or rehabilitation is not less than the number of toll-free non-HOV lanes, excluding auxiliary lanes, 

before reconstruction, restoration, or rehabilitation; 

‘‘(H) conversion of a high occupancy vehicle lane on a 

highway, bridge, or tunnel to a toll facility; and 

‘‘(I) preliminary studies to determine the feasibility of 

a toll facility for which Federal participation is authorized 

under this paragraph. 

‘‘(2) OWNERSHIP.—Each highway, bridge, tunnel, or approach to the highway, bridge, or tunnel constructed under this 

subsection shall— 

‘‘(A) be publicly owned; or 

‘‘(B) be privately owned if the public authority with jurisdiction over the highway, bridge, tunnel, or approach 

has entered into a contract with 1 or more private persons 

to design, finance, construct, and operate the facility and 

the public authority will be responsible for complying with 

all applicable requirements of this title with respect to the 

facility. 

‘‘(3) LIMITATIONS ON USE OF REVENUES.— 

‘‘(A) IN GENERAL.—A public authority with jurisdiction 

over a toll facility shall use all toll revenues received from 

operation of the toll facility only for— 

‘‘(i) debt service with respect to the projects on or 

for which the tolls are authorized, including funding of 

reasonable reserves and debt service on refinancing; 

‘‘(ii) a reasonable return on investment of any private person financing the project, as determined by the 

State or interstate compact of States concerned; 

‘‘(iii) any costs necessary for the improvement and 

proper operation and maintenance of the toll facility, 

including reconstruction, resurfacing, restoration, and 

rehabilitation; 

‘‘(iv) if the toll facility is subject to a public-private 

partnership agreement, payments that the party holding the right to toll revenues owes to the other party 

under the public-private partnership agreement; and 

‘‘(v) if the public authority certifies annually that 

the tolled facility is being adequately maintained, any 

other purpose for which Federal funds may be obligated by a State under this title. 

‘‘(B) ANNUAL AUDIT.— 


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‘‘(i) IN GENERAL.—A public authority with jurisdiction over a toll facility shall conduct or have an independent auditor conduct an annual audit of toll facility records to verify adequate maintenance and compliance with subparagraph (A), and report the results of 

the audits to the Secretary. 

‘‘(ii) RECORDS.—On reasonable notice, the public 

authority shall make all records of the public authority 

pertaining to the toll facility available for audit by the 

Secretary. 

‘‘(C) NONCOMPLIANCE.—If the Secretary concludes that 

a public authority has not complied with the limitations on 

the use of revenues described in subparagraph (A), the Secretary may require the public authority to discontinue collecting tolls until an agreement with the Secretary is 

reached to achieve compliance with the limitation on the 

use of revenues described in subparagraph (A). 

‘‘(4) LIMITATIONS ON CONVERSION OF HIGH OCCUPANCY VEHICLE FACILITIES ON INTERSTATE SYSTEM.— 

‘‘(A) IN GENERAL.—A public authority with jurisdiction 

over a high occupancy vehicle facility on the Interstate System may undertake reconstruction, restoration, or rehabilitation under paragraph (1)(G) on the facility, and may levy 

tolls on vehicles, excluding high occupancy vehicles, using 

the reconstructed, restored, or rehabilitated facility, if the 

public authority— 

‘‘(i) in the case of a high occupancy vehicle facility 

that affects a metropolitan area, submits to the Secretary a written assurance that the metropolitan planning organization designated under section 5203 of 

title 49 for the area has been consulted concerning the 

placement and amount of tolls on the converted facility; 

‘‘(ii) develops, manages, and maintains a system 

that will automatically collect the toll; and 

‘‘(iii) establishes policies and procedures— 

‘‘(I) to manage the demand to use the facility 

by varying the toll amount that is charged; and 

‘‘(II) to enforce sanctions for violations of use 

of the facility. 

‘‘(B) EXEMPTION FROM TOLLS.—In levying tolls on a facility under subparagraph (A), a public authority may designate classes of vehicles that are exempt from the tolls or 

charge different toll rates for different classes of vehicles. 

‘‘(5) SPECIAL RULE FOR FUNDING.— 

‘‘(A) IN GENERAL.—In the case of a toll facility under 

the jurisdiction of a public authority of a State (other than 

the State transportation department), on request of the 

State transportation department and subject to such terms 

and conditions as the department and public authority may 

agree, the Secretary, working through the State department 

of transportation, shall reimburse the public authority for 

the Federal share of the costs of construction of the project 

carried out on the toll facility under this subsection in the 

same manner and to the same extent as the department 


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would be reimbursed if the project was being carried out by 

the department. 

‘‘(B) SOURCE.—The reimbursement of funds under this 

paragraph shall be from sums apportioned to the State 

under this chapter and available for obligations on projects 

on the Federal-aid system in the State on which the project 

is being carried out. 

‘‘(6) LIMITATION ON FEDERAL SHARE.—The Federal share 

payable for a project described in paragraph (1) shall be a percentage determined by the State, but not to exceed 80 percent. 

‘‘(7) MODIFICATIONS.—If a public authority (including a 

State transportation department) with jurisdiction over a toll 

facility subject to an agreement under this section or section 

119(e), as in effect on the day before the effective date of title 

I of the Intermodal Surface Transportation Efficiency Act of 

1991 (105 Stat. 1915), requests modification of the agreement, 

the Secretary shall modify the agreement to allow the continuation of tolls in accordance with paragraph (3) without repayment of Federal funds. 

‘‘(8) LOANS.— 

‘‘(A) IN GENERAL.— ‘‘(i) LOANS.—Using amounts made available under 

this title, a State may loan to a public or private entity 

constructing or proposing to construct under this section a toll facility or non-toll facility with a dedicated 

revenue source an amount equal to all or part of the 

Federal share of the cost of the project if the project has 

a revenue source specifically dedicated to the project. 

‘‘(ii) DEDICATED REVENUE SOURCES.—Dedicated 

revenue sources for non-toll facilities include excise 

taxes, sales taxes, motor vehicle use fees, tax on real 

property, tax increment financing, and such other dedicated revenue sources as the Secretary determines appropriate. 

‘‘(B) COMPLIANCE WITH FEDERAL LAWS.—As a condition 

of receiving a loan under this paragraph, the public or private entity that receives the loan shall ensure that the 

project will be carried out in accordance with this title and 

any other applicable Federal law, including any applicable 

provision of a Federal environmental law. 

‘‘(C) SUBORDINATION OF DEBT.—The amount of any 

loan received for a project under this paragraph may be 

subordinated to any other debt financing for the project. 

‘‘(D) OBLIGATION OF FUNDS LOANED.—Funds loaned 

under this paragraph may only be obligated for projects 

under this paragraph. 

‘‘(E) REPAYMENT.—The repayment of a loan made 

under this paragraph shall commence not later than 5 

years after date on which the facility that is the subject of 

the loan is open to traffic. 

‘‘(F) TERM OF LOAN.—The term of a loan made under 

this paragraph shall not exceed 30 years from the date on 

which the loan funds are obligated. 

‘‘(G) INTEREST.—A loan made under this paragraph 

shall bear interest at or below market interest rates, as deVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00176 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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termined by the State, to make the project that is the subject of the loan feasible. 

‘‘(H) REUSE OF FUNDS.—Amounts repaid to a State 

from a loan made under this paragraph may be obligated— 

‘‘(i) for any purpose for which the loan funds were 

available under this title; and 

‘‘(ii) for the purchase of insurance or for use as a 

capital reserve for other forms of credit enhancement 

for project debt in order to improve credit market access or to lower interest rates for projects eligible for assistance under this title. 

‘‘(I) GUIDELINES.—The Secretary shall establish procedures and guidelines for making loans under this paragraph. 

‘‘(9) STATE LAW PERMITTING TOLLING.—If a State does not 

have a highway, bridge, or tunnel toll facility as of the date of 

enactment of the MAP–21, before commencing any activity authorized under this section, the State shall have in effect a law 

that permits tolling on a highway, bridge, or tunnel. 

‘‘(10) DEFINITIONS.—In this subsection, the following definitions apply: 

‘‘(A) HIGH OCCUPANCY VEHICLE; HOV.—The term ‘high 

occupancy vehicle’ or ‘HOV’ means a vehicle with not fewer 

than 2 occupants. 

‘‘(B) INITIAL CONSTRUCTION.— 

‘‘(i) IN GENERAL.—The term ‘initial construction’ 

means the construction of a highway, bridge, tunnel, or 

other facility at any time before it is open to traffic. 

‘‘(ii) EXCLUSIONS.—The term ‘initial construction’ 

does not include any improvement to a highway, 

bridge, tunnel, or other facility after it is open to traffic. 

‘‘(C) PUBLIC AUTHORITY.—The term ‘public authority’ 

means a State, interstate compact of States, or public entity 

designated by a State. 

‘‘(D) TOLL FACILITY.—The term ‘toll facility’ means a 

toll highway, bridge, or tunnel or approach to the highway, 

bridge, or tunnel constructed under this subsection.’’. 

(b) ELECTRONIC TOLL COLLECTION INTEROPERABILITY REQUIREMENTS.—Not later than 4 years after the date of enactment of this 

Act, all toll facilities on the Federal-aid highways shall implement 

technologies or business practices that provide for the interoperability of electronic toll collection programs. 

SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS. 

(a) FRINGE AND CORRIDOR PARKING FACILITIES.—Section 137 of 

title 23, United States Code, is amended— 

(1) in subsection (f)(1)— 

(A) by striking ‘‘104(b)(4)’’ and inserting ‘‘104(b)(1)’’; 

and 

(B) by inserting ‘‘including the addition of electric vehicle charging stations or natural gas vehicle refueling stations,’’ after ‘‘new facilities,’’; and 

(2) by adding at the end the following: 


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‘‘(g) FUNDING.—The addition of electric vehicle charging stations or natural gas vehicle refueling stations to new or previously 

funded parking facilities shall be eligible for funding under this section.’’. 

(b) PUBLIC TRANSPORTATION.—Section 142(a)(1) of title 23, 

United States Code, is amended by inserting ‘‘, which may include 

electric vehicle charging stations or natural gas vehicle refueling 

stations,’’ after ‘‘parking facilities’’. 

(c) FOREST DEVELOPMENT ROADS AND TRAILS.—Section 205(d) 

of title 23, United States Code, is amended by inserting ‘‘, which 

may include electric vehicle charging stations or natural gas vehicle 

refueling stations,’’ after ‘‘parking areas’’. 

SEC. 1514. HOV FACILITIES. 

Section 166 of title 23, United States Code, is amended— 

(1) in subsection (b)(5)— 

(A) in subparagraph (A) by striking ‘‘2009’’ and inserting ‘‘2017’’; 

(B) in subparagraph (B) by striking ‘‘2009’’ and inserting ‘‘2017’’; and 

(C) in subparagraph (C)— 

(i) by striking ‘‘subparagraph (B)’’ and inserting 

‘‘this paragraph’’; and 

(ii) by inserting ‘‘or equal to’’ after ‘‘less than’’; 

(2) in subsection (c) by striking paragraph (3) and inserting 

the following: 

‘‘(3) TOLL REVENUE.—Toll revenue collected under this section is subject to the requirements of section 129(a)(3).’’; and 

(3) in subsection (d)(1)— 

(A) in the matter preceding subparagraph (A)— 

(i) by striking ‘‘in a fiscal year shall certify’’ and 

inserting ‘‘shall submit to the Secretary a report demonstrating that the facility is not already degraded, 

and that the presence of the vehicles will not cause the 

facility to become degraded, and certify’’; and 

(ii) by striking ‘‘in the fiscal year’’; 

(B) in subparagraph (A) by inserting ‘‘and submitting 

to the Secretary annual reports of those impacts’’ after ‘‘adjacent highways’’; 

(C) in subparagraph (C) by striking ‘‘if the presence of 

the vehicles has degraded the operation of the facility’’ and 

inserting ‘‘whenever the operation of the facility is degraded’’; and 

(D) by adding at the end the following: 

‘‘(D) MAINTENANCE OF OPERATING PERFORMANCE.—Not 

later than 180 days after the date on which a facility is degraded pursuant to the standard specified in paragraph 

(2), the State agency with jurisdiction over the facility shall 

bring the facility into compliance with the minimum average operating speed performance standard through changes 

to operation of the facility, including— 

‘‘(i) increasing the occupancy requirement for HOV 

lanes; 

‘‘(ii) varying the toll charged to vehicles allowed 

under subsection (b) to reduce demand; 


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‘‘(iii) discontinuing allowing non-HOV vehicles to 

use HOV lanes under subsection (b); or 

‘‘(iv) increasing the available capacity of the HOV 

facility. 

‘‘(E) COMPLIANCE.—If the State fails to bring a facility 

into compliance under subparagraph (D), the Secretary 

shall subject the State to appropriate program sanctions 

under section 1.36 of title 23, Code of Federal Regulations 

(or successor regulations), until the performance is no 

longer degraded.’’. 

SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION EMERGENCIES. 

(a) IN GENERAL.—Chapter 1 of title 23, United States Code (as 

amended by section 1311(a)), is amended by adding at the end the 

following: 

‘‘§ 170. Funding flexibility for transportation emergencies 

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, 

a State may use up to 100 percent of any covered funds of the State 

to repair or replace a transportation facility that has suffered serious damage as a result of a natural disaster or catastrophic failure 

from an external cause. 

‘‘(b) DECLARATION OF EMERGENCY.—Funds may be used under 

this section only for a disaster or emergency declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

‘‘(c) REPAYMENT.—Funds used under subsection (a) shall be repaid to the program from which the funds were taken in the event 

that such repairs or replacement are subsequently covered by a supplemental appropriation of funds. 

‘‘(d) DEFINITIONS.—In this section, the following definitions 

apply: 

‘‘(1) COVERED FUNDS.—The term ‘covered funds’ means any 

amounts apportioned to a State under section 104(b), other than 

amounts suballocated to metropolitan areas and other areas of 

the State under section 133(d), but including any such amounts 

required to be set aside for a purpose other than the repair or 

replacement of a transportation facility under this section. 

‘‘(2) TRANSPORTATION FACILITY.—The term ‘transportation 

facility’ means any facility eligible for assistance under section 

125.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis 

for chapter 1 of title 23, United States Code (as amended by section 

1311(b)), is amended by adding at the end the following: 

‘‘170. Funding flexibility for transportation emergencies.’’. 

SEC. 1516. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO ADDRESS TRANSPORTATION INFRASTRUCTURE IN THE VICINITY OF MILITARY INSTALLATIONS. 

The second sentence of section 210(a)(2) of title 23, United 

States Code, is amended by inserting ‘‘, in consultation with the Secretary of Transportation,’’ before ‘‘shall determine’’. 

SEC. 1517. MAPPING. 

(a) IN GENERAL.—Section 306 of title 23, United States Code, 

is amended— 


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(1) in subsection (a) by striking ‘‘may’’ and inserting 

‘‘shall’’; 

(2) in subsection (b) in the second sentence by striking 

‘‘State and’’ and inserting ‘‘State government and’’; and 

(3) by adding at the end the following: 

‘‘(c) IMPLEMENTATION.—The Secretary shall develop a process 

for the oversight and monitoring, on an annual basis, of the compliance of each State with the guidance issued under subsection (b).’’. 

(b) SURVEY.—Not later than 2 years after the date of enactment 

of this Act, the Secretary shall conduct a survey of all States to determine what percentage of projects carried out under title 23, 

United States Code, in each State utilize private sector sources for 

surveying and mapping services. 

SEC. 1518. BUY AMERICA PROVISIONS. 

Section 313 of title 23, United States Code, is amended by adding at the end the following: 

‘‘(g) APPLICATION TO HIGHWAY PROGRAMS.—The requirements 

under this section shall apply to all contracts eligible for assistance 

under this chapter for a project carried out within the scope of the 

applicable finding, determination, or decision under the National 

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding source of such contracts, if at least 1 contract for 

the project is funded with amounts made available to carry out this 

title.’’. 

SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE 

PROVISIONS. 

(a) CONSOLIDATION OF PROGRAMS.—From administrative funds 

made available under section 104(a) of title 23, United States Code, 

not less than $3,000,000 for each of fiscal years 2013 and 2014 

shall be made available— 

(1) to carry out safety-related activities, including— 

(A) to carry out the operation lifesaver program— 

(i) to provide public information and education 

programs to help prevent and reduce motor vehicle accidents, injuries, and fatalities; and 

(ii) to improve driver performance at railway-highway crossings; and 

(B) to provide work zone safety grants in accordance 

with subsections (a) and (b) of section 1409 of the 

SAFETEA–LU (23 U.S.C. 401 note; 119 Stat. 1232); and 

(2) to operate authorized safety-related clearinghouses, including— 

(A) the national work zone safety information clearinghouse authorized by section 358(b)(2) of the National Highway System Designation Act of 1995 (23 U.S.C. 401 note; 

109 Stat. 625); and 

(B) a public road safety clearinghouse in accordance 

with section 1411(a) of the SAFETEA–LU (23 U.S.C. 402 

note; 119 Stat. 1234). 

(b) REPEALS.— (1) TITLE 23.— (A) IN GENERAL.—Sections 105, 110, 117, 124, 151, 

155, 157, 160, 212, 216, 303, and 309 of title 23, United 

States Code, are repealed. 


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(B) SET ASIDES.—Section 118 of title 23, United States 

Code, is amended— 

(i) by striking subsection (c); and 

(ii) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively. 

(2) SAFETEA–LU.—Sections 1302, 1305, 1306, 1803, 1804, 

1907, and 1958 of SAFETEA–LU (Public Law 109–59) are repealed. 

(3) ADDITIONAL.—Section 1132 of the Energy Independence 

and Security Act of 2007 (Public Law 110–140; 121 Stat. 1763) 

is repealed. 

(c) CONFORMING AMENDMENTS.— 

(1) TITLE ANALYSIS.— 

(A) CHAPTER 1.—The analysis for chapter 1 of title 23, 

United States Code, is amended by striking the items relating to sections 105, 110, 117, 124, 151, 155, 157, and 160. 

(B) CHAPTER 2.—The analysis for chapter 2 of title 23, 

United States Code, is amended by striking the items relating to sections 212 and 216. 

(C) CHAPTER 3.—The analysis for chapter 3 of title 23, 

United States Code, is amended by striking the items relating to sections 303 and 309. 

(2) TABLE OF CONTENTS.—The table of contents contained 

in section 1(b) of SAFETEA–LU (Public Law 109–59; 119 Stat. 

1144) is amended by striking the items relating to sections 

1302, 1305, 1306, 1803, 1804, 1907, and 1958. 

(3) SECTION 104.—Section 104(e) of title 23, United States 

Code, is amended by striking ‘‘, 105,’’. 

(4) SECTION 109.—Section 109(q) of title 23, United States 

Code, is amended by striking ‘‘in accordance with section 303 

or’’. 

(5) SECTION 118.—Section 118(b) of title 23, United States 

Code, is amended— 

(A) by striking paragraph (1) and all that follows 

through the heading of paragraph (2); and 

(B) by striking ‘‘(other than for Interstate construction)’’. 

(6) SECTION 130.—Section 130 of title 23, United States 

Code, is amended— 

(A) in subsection (e) by striking ‘‘section 104(b)(5)’’ and 

inserting ‘‘section 104(b)(3)’’; 

(B) in subsection (f)(1) by inserting ‘‘as in effect on the 

day before the date of enactment of the MAP–21’’ after ‘‘section 104(b)(3)(A)’’; and 

(C) in subsection (l) by striking paragraphs (3) and (4). 

(7) SECTION 131.—Section 131(m) of title 23, United States 

Code, is amended by striking ‘‘Subject to approval by the Secretary in accordance with the program of projects approval 

process of section 105, a State’’ and inserting ‘‘A State’’. 

(8) SECTION 133.—Paragraph (13) of section 133(b) of title 

23, United States Code (as amended by section 1108(a)(3)), is 

amended by striking ‘‘under section 303.’’ 

(9) SECTION 142.—Section 142 of title 23, United States 

Code, is amended— 

(A) in subsection (a)— 


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(i) in paragraph (1)— 

(I) by striking ‘‘motor vehicles (other than 

rail)’’ and inserting ‘‘buses’’; 

(II) by striking ‘‘(hereafter in this section referred to as ‘buses’)’’; 

(III) by striking ‘‘Federal-aid systems’’ and inserting ‘‘Federal-aid highways’’; and 

(IV) by striking ‘‘Federal-aid system’’ and inserting ‘‘Federal-aid highway’’; and 

(ii) in paragraph (2)— 

(I) by striking ‘‘as a project on the the surface 

transportation program for’’; and 

(II) by striking ‘‘section 104(b)(3)’’ and inserting ‘‘section 104(b)(2)’’; 

(B) in subsection (b) by striking ‘‘104(b)(4)’’ and inserting ‘‘104(b)(1)’’; 

(C) in subsection (c)— 

(i) by striking ‘‘system’’ in each place it appears 

and inserting ‘‘highway’’; and 

(ii) by striking ‘‘highway facilities’’ and inserting 

‘‘highways eligible under the program that is the source 

of the funds’’; 

(D) in subsection (e)(2) by striking ‘‘Notwithstanding 

section 209(f)(1) of the Highway Revenue Act of 1956, the 

Highway Trust Fund shall be available for making expenditures to meet obligations resulting from projects authorized 

by subsection (a)(2) of this section and such projects’’ and 

inserting ‘‘Projects authorized by subsection (a)(2)’’; and 

(E) in subsection (f) by striking ‘‘exits’’ and inserting 

‘‘exists’’. 

(10) SECTION 145.—Section 145(b) of title 23, United States 

Code, is amended by striking ‘‘section 117 of this title,’’. 

(11) SECTION 218.—Section 218 of title 23, United States 

Code, is amended— 

(A) in subsection (a)— 

(i) by striking the first two sentences; 

(ii) in the third sentence— 

(I) by striking ‘‘, in addition to such funds,’’; 

and 

(II) by striking ‘‘such highway or’’; 

(iii) by striking the fourth sentence and fifth sentences; 

(B) by striking subsection (b); and 

(C) by redesignating subsection (c) as subsection (b). 

(12) SECTION 610.—Section 610(d)(1)(B) of title 23, United 

States Code, is amended by striking ‘‘under section 105’’. 

SEC. 1520. DENALI COMMISSION. 

The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is 

amended— 

(1) in section 305, by striking subsection (c) and inserting 

the following: 

‘‘(c) GIFTS.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the 

Commission, on behalf of the United States, may accept use, 


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and dispose of gifts or donations of services, property, or money 

for purposes of carrying out this Act. 

‘‘(2) CONDITIONAL.—With respect to conditional gifts— 

‘‘(A)(i) the Commission, on behalf of the United States, 

may accept conditional gifts for purposes of carrying out 

this Act, if approved by the Federal Cochairperson; and 

‘‘(ii) the principal of and income from any such conditional gift shall be held, invested, reinvested, and used in 

accordance with the condition applicable to the gift; but 

‘‘(B) no gift shall be accepted that is conditioned on any 

expenditure not to be funded from the gift or from the income generated by the gift unless the expenditure has been 

approved by Act of Congress.’’; and 

(2) by adding at the end the following: 

‘‘SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES. 

‘‘(a) IN GENERAL.—Subject to subsection (c), for purposes of this 

Act, the Commission may accept transfers of funds from other Federal agencies. 

‘‘(b) TRANSFERS.—Any Federal agency authorized to carry out 

an activity that is within the authority of the Commission may 

transfer to the Commission any appropriated funds for the activity. 

‘‘(c) TREATMENT.—Any funds transferred to the Commission 

under this subsection— 

‘‘(1) shall remain available until expended; and 

‘‘(2) may, to the extent necessary to carry out this Act, be 

transferred to, and merged with, the amounts made available 

by appropriations Acts for the Commission by the Federal Cochairperson.’’. 

SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY 

ACQUISITION POLICIES ACT OF 1970 AMENDMENTS. 

(a) MOVING AND RELATED EXPENSES.—Section 202 of the Uniform Relocation Assistance and Real Property Acquisition Policies 

Act of 1970 (42 U.S.C. 4622) is amended— 

(1) in subsection (a)(4) by striking ‘‘$10,000’’ and inserting 

‘‘$25,000, as adjusted by regulation, in accordance with section 

213(d)’’; and 

(2) in the second sentence of subsection (c) by striking 

‘‘$20,000’’ and inserting ‘‘$40,000, as adjusted by regulation, in 

accordance with section 213(d)’’. 

(b) REPLACEMENT HOUSING FOR HOMEOWNERS.—The first sentence of section 203(a)(1) of the Uniform Relocation Assistance and 

Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4623(a)(1)) 

is amended— 

(1) by striking ‘‘$22,500’’ and inserting ‘‘$31,000, as adjusted by regulation, in accordance with 213(d),’’; and 

(2) by striking ‘‘one hundred and eighty days prior to’’ and 

inserting ‘‘90 days before’’. 

(c) REPLACEMENT HOUSING FOR TENANTS AND CERTAIN OTHERS.—Section 204 of the Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970 (42 U.S.C. 4624) is amended— 

(1) in the second sentence of subsection (a) by striking 

‘‘$5,250’’ and inserting ‘‘$7,200, as adjusted by regulation, in 

accordance with section 213(d)’’; and 


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(2) in the second sentence of subsection (b) by striking ‘‘, except’’ and all that follows through the end of the subsection and 

inserting a period. 

(d) DUTIES OF LEAD AGENCY.—Section 213 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 

(42 U.S.C. 4633) is amended— 

(1) in subsection (b)— 

(A) in paragraph (2) by striking ‘‘and’’ at the end; 

(B) in paragraph (3) by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(4) that each Federal agency that has programs or projects 

requiring the acquisition of real property or causing a displacement from real property subject to the provisions of this Act 

shall provide to the lead agency an annual summary report the 

describes the activities conducted by the Federal agency.’’; and 

(2) by adding at the end the following: 

‘‘(d) ADJUSTMENT OF PAYMENTS.—The head of the lead agency 

may adjust, by regulation, the amounts of relocation payments provided under sections 202(a)(4), 202(c), 203(a), and 204(a) if the head 

of the lead agency determines that cost of living, inflation, or other 

factors indicate that the payments should be adjusted to meet the 

policy objectives of this Act.’’. 

(e) AGENCY COORDINATION.—Title II of the Uniform Relocation 

Assistance and Real Property Acquisition Policies Act of 1970 is 

amended by inserting after section 213 (42 U.S.C. 4633) the following: 

‘‘SEC. 214. AGENCY COORDINATION. 

‘‘(a) AGENCY CAPACITY.—Each Federal agency responsible for 

funding or carrying out relocation and acquisition activities shall 

have adequately trained personnel and such other resources as are 

necessary to manage and oversee the relocation and acquisition program of the Federal agency in accordance with this Act. 

‘‘(b) INTERAGENCY AGREEMENTS.—Not later than 1 year after 

the date of enactment of this section, each Federal agency responsible for funding relocation and acquisition activities (other than the 

agency serving as the lead agency) shall enter into a memorandum 

of understanding with the lead agency that— 

‘‘(1) provides for periodic training of the personnel of the 

Federal agency, which in the case of a Federal agency that provides Federal financial assistance, may include personnel of 

any displacing agency that receives Federal financial assistance; 

‘‘(2) addresses ways in which the lead agency may provide 

assistance and coordination to the Federal agency relating to 

compliance with the Act on a program or project basis; and 

‘‘(3) addresses the funding of the training, assistance, and 

coordination activities provided by the lead agency, in accordance with subsection (c). 

‘‘(c) INTERAGENCY PAYMENTS.— 

‘‘(1) IN GENERAL.—For the fiscal year that begins 1 year 

after the date of enactment of this section, and each fiscal year 

thereafter, each Federal agency responsible for funding relocation and acquisition activities (other than the agency serving as 

the lead agency) shall transfer to the lead agency for the fiscal 


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year, such funds as are necessary, but not less than $35,000, to 

support the training, assistance, and coordination activities of 

the lead agency described in subsection (b). 

‘‘(2) INCLUDED COSTS.—The cost to a Federal agency of providing the funds described in paragraph (1) shall be included 

as part of the cost of 1 or more programs or projects undertaken 

by the Federal agency or with Federal financial assistance that 

result in the displacement of persons or the acquisition of real 

property.’’. 

(f) COOPERATION WITH FEDERAL AGENCIES.—Section 308 of 

title 23, United States Code, is amended by striking subsection (a) 

and inserting the following: 

‘‘(a) AUTHORIZED ACTIVITIES.— 

‘‘(1) IN GENERAL.—The Secretary may perform, by contract 

or otherwise, authorized engineering or other services in connection with the survey, construction, maintenance, or improvement of highways for other Federal agencies, cooperating foreign countries, and State cooperating agencies. 

‘‘(2) INCLUSIONS.—Services authorized under paragraph (1) 

may include activities authorized under section 214 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 

‘‘(3) REIMBURSEMENT.—Reimbursement for services carried 

out under this subsection (including depreciation on engineering and road-building equipment) shall be credited to the applicable appropriation.’’. 

(g) EFFECTIVE DATES.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this section shall take effect on the date 

of enactment of this Act. 

(2) EXCEPTION.—The amendments made by subsections (a) 

through (c) shall take effect 2 years after the date of enactment 

of this Act. 

SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION 

FROM AXLE WEIGHT RESTRICTIONS. 

Section 1023(h) of the Intermodal Surface Transportation Efficiency Act of 1991 (23 U.S.C. 127 note; Public Law 102–240) is 

amended— 

(1) in the heading of paragraph (1) by striking ‘‘TEMPORARY

EXEMPTION’’ and inserting ‘‘EXEMPTION’’; 

(2) in paragraph (1)— 

(A) in the matter preceding subparagraph (A) by striking ‘‘, for the period beginning on October 6, 1992, and ending on October 1, 2009,’’; 

(B) in subparagraph (A) by striking ‘‘or’’ at the end; 

(C) in subparagraph (B) by striking the period at the 

end and inserting ‘‘; or’’; and 

(D) by adding at the end the following: 

‘‘(C) any motor home (as defined in section 571.3 of 

title 49, Code of Federal Regulations (or successor regulation)).’’; and 

(3) in paragraph (2)(A) by striking ‘‘For the period beginning on the date of enactment of this subparagraph and ending 

on September 30, 2009, a’’ and inserting ‘‘A’’. 


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SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES. 

Section 1805(a) of the SAFETEA–LU (23 U.S.C. 144 note; 119 

Stat. 1459) is amended by striking ‘‘highway bridge replacement 

and rehabilitation program under section 144’’ and inserting ‘‘national highway performance program under section 119’’. 

SEC. 1524. USE OF YOUTH SERVICE AND CONSERVATION CORPS. 

(a) IN GENERAL.—The Secretary shall encourage the States and 

regional transportation planning agencies to enter into contracts 

and cooperative agreements with qualified youth service or conservation corps, as defined in sections 122(a)(2) of Public Law 101– 

610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of Public Law 103–82 (42 

U.S.C. 12656(c)(3)) to perform appropriate projects eligible under 

sections 162, 206, 213, and 217 of title 23, United States Code, and 

under section 1404 of the SAFETEA–LU (119 Stat. 1228). 

(b) REQUIREMENTS.—Under any contract or cooperative agreement entered into with a qualified youth service or conservation 

corps under this section, the Secretary shall— 

(1) set the amount of a living allowance or rate of pay for 

each participant in such corps at— 

(A) such amount or rate as required under State law 

in a State with such requirements; or 

(B) for corps in States not described in subparagraph 

(A), at such amount or rate as determined by the Secretary, 

not to exceed the maximum living allowance authorized by 

section 140 of Public Law 101–610 (42 U.S.C. 12594); and 

(2) not subject such corps to the requirements of section 112 

of title 23, United States Code. 

SEC. 1525. STATE AUTONOMY FOR CULVERT PIPE SELECTION. 

Not later than 180 days after the date of enactment of this Act, 

the Secretary shall modify section 635.411 of title 23, Code of Federal Regulations (as in effect on the date of enactment of this Act), 

to ensure that States shall have the autonomy to determine culvert 

and storm sewer material types to be included in the construction 

of a project on a Federal-aid highway. 

SEC. 1526. EVACUATION ROUTES. 

Each State shall give adequate consideration to the needs of 

evacuation routes in the State, including such routes serving or adjacent to facilities operated by the Armed Forces, when allocating 

funds apportioned to the State under title 23, United States Code, 

for the construction of Federal-aid highways. 

SEC. 1527. CONSOLIDATION OF GRANTS. 

(a) DEFINITIONS.—In this section, the term ‘‘recipient’’ means— 

(1) a State, local, or tribal government, including— 

(A) a territory of the United States; 

(B) a transit agency; 

(C) a port authority; 

(D) a metropolitan planning organization; or 

(E) any other political subdivision of a State or local 

government; 

(2) a multistate or multijurisdictional group, if each member of the group is an entity described in paragraph (1); and 

(3) a public-private partnership, if both parties are engaged 

in building the project. 


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(b) CONSOLIDATION.— (1) IN GENERAL.—A recipient that receives multiple grant 

awards from the Department to support 1 multimodal project 

may request that the Secretary designate 1 modal administration in the Department to be the lead administering authority 

for the overall project. 

(2) NEW STARTS.—Any project that includes funds awarded 

under section 5309 of title 49, United States Code, shall be exempt from consolidation under this section unless the grant recipient requests the Federal Transit Administration to be the 

lead administering authority. 

(3) REVIEW.— 

(A) IN GENERAL.—Not later than 30 days after the date 

on which a request under paragraph (1) is made, the Secretary shall review the request and approve or deny the designation of a single modal administration as the lead administering authority and point of contact for the Department. 

(B) NOTIFICATION.— 

(i) IN GENERAL.—The Secretary shall notify the requestor of the decision of the Secretary under subparagraph (A) in such form and at such time as the Secretary and the requestor agree. 

(ii) DENIAL.—If a request is denied, the Secretary 

shall provide the requestor with a detailed explanation 

of the reasoning of the Secretary with the notification 

under clause (i). 

(c) DUTIES.— (1) IN GENERAL.—A modal administration designated as a 

lead administering authority under this section shall— 

(A) be responsible for leading and coordinating the integrated project management team, which shall consist of 

all of the other modal administrations in the Department 

relating to the multimodal project; and 

(B) to the extent feasible during the first 30 days of carrying out the multimodal project, identify overlapping or 

duplicative regulatory requirements that exist for the 

project and propose a single, streamlined approach to meeting all of the applicable regulatory requirements through 

the activities described in subsection (d). 

(2) ADMINISTRATION.— 

(A) IN GENERAL.—The Secretary shall transfer all 

amounts that have been awarded for the multimodal 

project to the modal administration designated as the lead 

administering authority. 

(B) OPTION.— 

(i) IN GENERAL.—Participation under this section 

shall be optional for recipients, and no recipient shall 

be required to participate. 

(ii) SECRETARIAL DUTIES.—The Secretary is not required to identify every recipient that may be eligible 

to participate under this section. 

(d) COOPERATION.— 

(1) IN GENERAL.—The Secretary and modal administrations with relevant jurisdiction over a multimodal project 


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should cooperate on project review and delivery activities at the 

earliest practicable time. 

(2) PURPOSES.—The purposes of the cooperation under 

paragraph (1) are— 

(A) to avoid delays and duplication of effort later in the 

process; 

(B) to prevent potential conflicts; and 

(C) to ensure that planning and project development 

decisions are made in a streamlined manner and consistent 

with applicable law. 

(e) APPLICABILITY.—Nothing in this section shall— 

(1) supersede, amend, or modify the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other 

Federal environmental law; or 

(2) affect the responsibility of any Federal officer to comply 

with or enforce any law described in paragraph (1). 

SEC. 1528. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM. 

(a) SENSE OF THE SENATE.—It is the Sense of the Senate that 

the timely completion of the Appalachian development highway system is a transportation priority in the national interest. 

(b) MODIFIED FEDERAL SHARE FOR PROJECTS ON ADHS.—For 

fiscal years 2012 through 2021, the Federal share payable for the 

cost of constructing highways and access roads on the Appalachian 

development highway system under section 14501 of title 40, United 

States Code, with funds made available to a State for fiscal year 

2012 or a previous fiscal year for the Appalachian development 

highway system program, or with funds made available for fiscal 

year 2012 or a previous fiscal year for a specific project, route, or 

corridor on that system, shall be 100 percent. 

(c) FEDERAL SHARE FOR OTHER FUNDS USED ON ADHS.—For 

fiscal years 2012 through 2021, the Federal share payable for the 

cost of constructing highways and access roads on the Appalachian 

development highway system under section 14501 of title 40, United 

States Code, with Federal funds apportioned to a State for a program other than the Appalachian development highway system program shall be 100 percent. 

(d) COMPLETION PLAN.— 

(1) IN GENERAL.—Subject to paragraph (2), not later than 

1 year after the date of enactment of the MAP–21, each State 

represented on the Appalachian Regional Commission shall establish a plan for the completion of the designated corridors of 

the Appalachian development highway system within the State, 

including annual performance targets, with a target completion 

date. 

(2) SIGNIFICANT UNCOMPLETED MILES.—If the percentage of 

remaining Appalachian development highway system needs for 

a State, according to the latest cost to complete estimate for the 

Appalachian development highway system, is greater than 15 

percent of the total cost to complete estimate for the entire Appalachian development highway system, the State shall not establish a plan under paragraph (1) that would result in a reduction of obligated funds for the Appalachian development highway system within the State for any subsequent fiscal year. 


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SEC. 1529. ENGINEERING JUDGMENT. 

Not later than 90 days after the date of enactment of this Act, 

the Secretary shall issue guidance to State transportation departments clarifying that the standards, guidance, and options for design and application of traffic control devices provided in the Manual on Uniform Traffic Control Devices should not be considered a 

substitute for engineering judgment. 

SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS. 

To encourage the development of careers in the transportation 

field, the Secretary of Education and the Secretary of Labor are encouraged to use funds for training and employment education programs— 

(1) to develop programs for transportation-related careers 

and trades; and 

(2) to work with the Secretary to carry out programs developed under paragraph (1). 

SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS. 

(a) DEFINITION OF COVERED GRANT AWARD.—In this section, 

the term ‘‘covered grant award’’ means a grant award— 

(1) made— 

(A) by the Department; and 

(B) with funds made available under this Act; and (2) in an amount equal to or greater than $500,000. 

(b) NOTICE.—Except to the extent otherwise expressly provided 

in another provision of law, at least 3 business days before a covered grant award is announced, the Secretary shall provide to the 

Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Environment and Public 

Works of the Senate written notice of the covered grant award. 

SEC. 1532. BUDGET JUSTIFICATION. 

The Secretary shall submit to the Committee on Transportation 

and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a budget 

justification for each agency of the Department concurrently with 

the annual budget submission of the President to Congress under 

section 1105(a) of title 31, United States Code. 

SEC. 1533. PROHIBITION ON USE OF FUNDS FOR AUTOMATED TRAFFIC 

ENFORCEMENT. 

(a) DEFINITION OF AUTOMATED TRAFFIC ENFORCEMENT SYS- TEM.—In this section, the term ‘‘automated traffic enforcement system’’ means any camera that captures an image of a vehicle for the 

purposes of traffic law enforcement. 

(b) USE OF FUNDS.—Except as provided in subsection (c), for 

fiscal years 2013 and 2014, funds apportioned to a State under section 104(b)(3) of title 23, United States Code, may not be used for 

any program to purchase, operate, or maintain an automated traffic 

enforcement system. 

(c) EXCEPTION.—Subsection (b) shall not apply to automated 

traffic enforcement systems used to improve safety in school zones. 

SEC. 1534. PUBLIC-PRIVATE PARTNERSHIPS. 

(a) BEST PRACTICES.—The Secretary shall compile, and make 

available to the public on the website of the Department, best practices on how States, public transportation agencies, and other public 


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officials can work with the private sector in the development, financing, construction, and operation of transportation facilities. 

(b) CONTENTS.—The best practices compiled under subsection 

(a) shall include polices and techniques to ensure that the interests 

of the traveling public and State and local governments are protected in any agreement entered into with the private sector for the 

development, financing, construction, and operation of transportation facilities. 

(c) TECHNICAL ASSISTANCE.—The Secretary, on request, may 

provide technical assistance to States, public transportation agencies, and other public officials regarding proposed public-private 

partnership agreements for the development, financing, construction, and operation of transportation facilities, including assistance 

in analyzing whether the use of a public-private partnership agreement would provide value compared with traditional public delivery 

methods. 

(d) STANDARD TRANSACTION CONTRACTS.— 

(1) DEVELOPMENT.—Not later than 18 months after the 

date of enactment of this Act, the Secretary shall develop standard public-private partnership transaction model contracts for 

the most popular types of public-private partnerships for the development, financing, construction, and operation of transportation facilities. 

(2) USE.—The Secretary shall encourage States, public 

transportation agencies, and other public officials to use the 

model contracts as a base template when developing their own 

public-private partnership agreements for the development, financing, construction, and operation of transportation facilities. 

SEC. 1535. REPORT ON HIGHWAY TRUST FUND EXPENDITURES. 

(a) INITIAL REPORT.—Not later than 150 days after the date of 

enactment of this Act, the Comptroller General of the United States 

shall submit to Congress a report describing the activities funded 

from the Highway Trust Fund during each of fiscal years 2009 

through 2011, including for purposes other than construction and 

maintenance of highways and bridges. 

(b) UPDATES.—Not later than 5 years after the date on which 

the report is submitted under subsection (a) and every 5 years thereafter, the Comptroller General of the United States shall submit to 

Congress a report that updates the information provided in the report under that subsection for the applicable 5-year period. 

(c) INCLUSIONS.—A report submitted under subsection (a) or (b) 

shall include information similar to the information included in the 

report of the Government Accountability Office numbered ‘‘GAO–09– 

729R’’ and entitled ‘‘Highway Trust Fund Expenditures on Purposes 

Other Than Construction and Maintenance of Highways and 

Bridges During Fiscal Years 2004–2008’’. 

SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE. 

(a) FINDINGS.—Congress finds that— 

(1) there are 926 coastal, Great Lakes, and inland harbors 

maintained by the Corps of Engineers; 

(2) according to the Bureau of Transportation Statistics— 

(A) in 2009, the ports and waterways of the United 

States handled more than 2,200,000,000 short tons of imports, exports, and domestic shipments; and 


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(B) in 2010, United States ports were responsible for 

more than $1,400,000,000,000 in waterborne imports and 

exports; 

(3) according to the Congressional Research Service, full 

channel dimensions are, on average, available approximately 1⁄3

of the time at the 59 harbors of the United States with the highest use rates; 

(4) in 1986, Congress created the Harbor Maintenance 

Trust Fund to provide funds for the operation and maintenance 

of the navigation channels of the United States; 

(5) in fiscal year 2012, the Harbor Maintenance Trust Fund 

is expected to grow from $6,280,000,000 to $7,011,000,000, an 

increase of approximately 13 percent; 

(6) despite growth of the Harbor Maintenance Trust Fund, 

expenditures from the Harbor Maintenance Trust Fund have 

not been sufficiently spent; and 

(7) inadequate investment in dredging needs is restricting 

access to the ports of the United States for domestic shipping, 

imports, and exports and therefore threatening the economic 

competitiveness of the United States. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that— 

(1) the Administration should request full use of the Harbor 

Maintenance Trust Fund for operating and maintaining the 

navigation channels of the United States; 

(2) the amounts in the Harbor Maintenance Trust Fund 

should be fully expended to operate and maintain the navigation channels of the United States; and 

(3) Congress should ensure that other programs, projects, 

and activities of the Civil Works Program of the Corps of Engineers, especially those programs, projects, and activities relating 

to inland navigation and flood control, are not adversely impacted. 

SEC. 1537. ESTIMATE OF HARBOR MAINTENANCE NEEDS. 

For fiscal year 2014 and each fiscal year thereafter, the President’s budget request submitted pursuant to section 1105 of title 31, 

United States Code, shall include— 

(1) an estimate of the nationwide average availability, expressed as a percentage, of the authorized depth and authorized 

width of all navigation channels authorized to be maintained 

using appropriations from the Harbor Maintenance Trust Fund 

that would result from harbor maintenance activities to be 

funded by the budget request; and 

(2) an estimate of the average annual amount of appropriations from the Harbor Maintenance Trust Fund that would be 

required to increase that average availability to 95 percent over 

a 3-year period. 

SEC. 1538. ASIAN CARP. 

(a) DEFINITIONS.—In this section: 

(1) HYDROLOGICAL SEPARATION.—The term ‘‘hydrological 

separation’’ means a physical separation on the Chicago Area 

Waterway System that— 

(A) would disconnect the Mississippi River watershed 

from the Lake Michigan watershed; and 


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(B) shall be designed to be adequate in scope to prevent 

the transfer of all aquatic species between each of those 

bodies of water. 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of the Army, acting through the Chief of Engineers. 

(b) EXPEDITED STUDY AND REPORT.— (1) IN GENERAL.—The Secretary shall— 

(A) expedite completion of the report for the study authorized by section 3061(d) of the Water Resources Development Act of 2007 (Public Law 110–114; 121 Stat. 1121); 

and 

(B) if the Secretary determines a project is justified in 

the completed report, proceed directly to project 

preconstruction engineering and design. 

(2) FOCUS.—In expediting the completion of the study and 

report under paragraph (1), the Secretary shall focus on— 

(A) the prevention of the spread of aquatic nuisance 

species between the Great Lakes and Mississippi River Basins, such as through the permanent hydrological separation of the Great Lakes and Mississippi River Basins; and 

(B) the watersheds of the following rivers and tributaries associated with the Chicago Area Waterway System: 

(i) The Illinois River, at and in the vicinity of Chicago, Illinois. 

(ii) The Chicago River, Calumet River, North 

Shore Channel, Chicago Sanitary and Ship Canal, 

and Cal-Sag Channel in the State of Illinois. 

(iii) The Grand Calumet River and Little Calumet 

River in the States of Illinois and Indiana. 

(3) EFFICIENT USE OF FUNDS.—The Secretary shall ensure 

the efficient use of funds to maximize the timely completion of 

the study and report under paragraph (1). 

(4) DEADLINE.—The Secretary shall complete the report 

under paragraph (1) by not later than 18 months after the date 

of enactment of this Act. 

(5) INTERIM REPORT.—Not later than 90 days after the date 

of enactment of this Act, the Secretary shall submit to the Committees on Appropriations of the House of Representatives and 

Senate, the Committee on Environment and Public Works of the 

Senate, and the Committee on Transportation and Infrastructure of the House of Representatives a report describing— 

(A) interim milestones that will be met prior to final 

completion of the study and report under paragraph (1); 

and 

(B) funding necessary for completion of the study and 

report under paragraph (1), including funding necessary 

for completion of each interim milestone identified under 

subparagraph (A). 

SEC. 1539. REST AREAS. 

(a) AGREEMENTS RELATING TO USE OF AND ACCESS TO RIGHTSOF-WAY—INTERSTATE SYSTEM.—Section 111 of title 23, United 

States Code, is amended— 

(1) in subsection (a) in the second sentence by striking the 

period and inserting ‘‘and will not change the boundary of any 

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tion of, or afford access to, an automotive service station or 

other commercial establishment.’’; 

(2) by redesignating subsections (b) and (c) as subsections 

(c) and (d), respectively; and 

(3) by inserting after subsection (a) the following: 

‘‘(b) REST AREAS.— 

‘‘(1) IN GENERAL.—Notwithstanding subsection (a), the Secretary shall permit a State to acquire, construct, operate, and 

maintain a rest area along a highway on the Interstate System 

in such State. 

‘‘(2) LIMITED ACTIVITIES.—The Secretary shall permit limited commercial activities within a rest area under paragraph 

(1), if the activities are available only to customers using the 

rest area and are limited to— 

‘‘(A) commercial advertising and media displays if 

such advertising and displays are— 

‘‘(i) exhibited solely within any facility constructed 

in the rest area; and 

‘‘(ii) not legible from the main traveled way; 

‘‘(B) items designed to promote tourism in the State, 

limited to books, DVDs, and other media; 

‘‘(C) tickets for events or attractions in the State of a 

historical or tourism-related nature; 

‘‘(D) travel-related information, including maps, travel 

booklets, and hotel coupon booklets; and 

‘‘(E) lottery machines, provided that the priority afforded to blind vendors under subsection (c) applies to this 

subparagraph. 

‘‘(3) PRIVATE OPERATORS.—A State may permit a private 

party to operate such commercial activities. 

‘‘(4) LIMITATION ON USE OF REVENUES.—A State shall use 

any revenues received from the commercial activities in a rest 

area under this section to cover the costs of acquiring, constructing, operating, and maintaining rest areas in the State.’’. 

(b) CONTROL OF OUTDOOR ADVERTISING.—Section 131(i) of title 

23, United States Code, is amended by adding at the end the following: 

‘‘A State may permit the installation of signs that acknowledge the 

sponsorship of rest areas within such rest areas or along the main 

traveled way of the system, provided that such signs shall not affect 

the safe and efficient utilization of the Interstate System and the 

primary system. The Secretary shall establish criteria for the installation of such signs on the main traveled way, including criteria 

pertaining to the placement of rest area sponsorship acknowledgment signs in relation to the placement of advance guide signs for 

rest areas.’’. 

Subtitle F—Gulf Coast Restoration 

SEC. 1601. SHORT TITLE. 

This subtitle may be cited as the ‘‘Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived Economies of the 

Gulf Coast States Act of 2012’’. 


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SEC. 1602. GULF COAST RESTORATION TRUST FUND. 

(a) ESTABLISHMENT.—There is established in the Treasury of 

the United States a trust fund to be known as the ‘‘Gulf Coast Restoration Trust Fund’’ (referred to in this section as the ‘‘Trust 

Fund’’), consisting of such amounts as are deposited in the Trust 

Fund under this Act or any other provision of law. 

(b) TRANSFERS.—The Secretary of the Treasury shall deposit in 

the Trust Fund an amount equal to 80 percent of all administrative 

and civil penalties paid by responsible parties after the date of enactment of this Act in connection with the explosion on, and sinking 

of, the mobile offshore drilling unit Deepwater Horizon pursuant to 

a court order, negotiated settlement, or other instrument in accordance with section 311 of the Federal Water Pollution Control Act (33 

U.S.C. 1321). 

(c) EXPENDITURES.—Amounts in the Trust Fund, including interest earned on advances to the Trust Fund and proceeds from investment under subsection (d), shall— 

(1) be available for expenditure, without further appropriation, solely for the purpose and eligible activities of this subtitle 

and the amendments made by this subtitle; and 

(2) remain available until expended, without fiscal year 

limitation. 

(d) INVESTMENT.—Amounts in the Trust Fund shall be invested 

in accordance with section 9702 of title 31, United States Code, and 

any interest on, and proceeds from, any such investment shall be 

available for expenditure in accordance with this subtitle and the 

amendments made by this subtitle. 

(e) ADMINISTRATION.—Not later than 180 days after the date of 

enactment of this Act, after providing notice and an opportunity for 

public comment, the Secretary of the Treasury, in consultation with 

the Secretary of the Interior and the Secretary of Commerce, shall 

establish such procedures as the Secretary determines to be necessary to deposit amounts in, and expend amounts from, the Trust 

Fund pursuant to this subtitle, including— 

(1) procedures to assess whether the programs and activities carried out under this subtitle and the amendments made 

by this subtitle achieve compliance with applicable requirements, including procedures by which the Secretary of the 

Treasury may determine whether an expenditure by a Gulf 

Coast State or coastal political subdivision (as those terms are 

defined in section 311 of the Federal Water Pollution Control 

Act (33 U.S.C. 1321)) pursuant to such a program or activity 

achieves compliance; 

(2) auditing requirements to ensure that amounts in the 

Trust Fund are expended as intended; and 

(3) procedures for identification and allocation of funds 

available to the Secretary under other provisions of law that 

may be necessary to pay the administrative expenses directly attributable to the management of the Trust Fund. 

(f) SUNSET.—The authority for the Trust Fund shall terminate 

on the date all funds in the Trust Fund have been expended. 

SEC. 1603. GULF COAST NATURAL RESOURCES RESTORATION AND 

ECONOMIC RECOVERY. 

Section 311 of the Federal Water Pollution Control Act (33 

U.S.C. 1321) is amended— 


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(1) in subsection (a)— 

(A) in paragraph (25)(B), by striking ‘‘and’’ at the end; 

(B) in paragraph (26)(D), by striking the period at the 

end and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(27) the term ‘best available science’ means science that— 

‘‘(A) maximizes the quality, objectivity, and integrity of 

information, including statistical information; 

‘‘(B) uses peer-reviewed and publicly available data; 

and 

‘‘(C) clearly documents and communicates risks and 

uncertainties in the scientific basis for such projects; 

‘‘(28) the term ‘Chairperson’ means the Chairperson of the 

Council; 

‘‘(29) the term ‘coastal political subdivision’ means any 

local political jurisdiction that is immediately below the State 

level of government, including a county, parish, or borough, 

with a coastline that is contiguous with any portion of the 

United States Gulf of Mexico; 

‘‘(30) the term ‘Comprehensive Plan’ means the comprehensive plan developed by the Council pursuant to subsection (t); 

‘‘(31) the term ‘Council’ means the Gulf Coast Ecosystem 

Restoration Council established pursuant to subsection (t); 

‘‘(32) the term ‘Deepwater Horizon oil spill’ means the blowout and explosion of the mobile offshore drilling unit Deepwater 

Horizon that occurred on April 20, 2010, and resulting hydrocarbon releases into the environment; 

‘‘(33) the term ‘Gulf Coast region’ means— 

‘‘(A) in the Gulf Coast States, the coastal zones (as that 

term is defined in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453)), except that, in this section, the term ‘coastal zones’ includes land within the coastal zones that is held in trust by, or the use of which is by 

law subject solely to the discretion of, the Federal Government or officers or agents of the Federal Government)) that 

border the Gulf of Mexico; 

‘‘(B) any adjacent land, water, and watersheds, that 

are within 25 miles of the coastal zones described in subparagraph (A) of the Gulf Coast States; and 

‘‘(C) all Federal waters in the Gulf of Mexico; 

‘‘(34) the term ‘Gulf Coast State’ means any of the States 

of Alabama, Florida, Louisiana, Mississippi, and Texas; and 

‘‘(35) the term ‘Trust Fund’ means the Gulf Coast Restoration Trust Fund established pursuant to section 1602 of the Resources and Ecosystems Sustainability, Tourist Opportunities, 

and Revived Economies of the Gulf Coast States Act of 2012.’’; 

(2) in subsection (s), by inserting ‘‘except as provided in 

subsection (t)’’ before the period at the end; and 

(3) by adding at the end the following: 

‘‘(t) GULF COAST RESTORATION AND RECOVERY.— ‘‘(1) STATE ALLOCATION AND EXPENDITURES.— ‘‘(A) IN GENERAL.—Of the total amounts made available in any fiscal year from the Trust Fund, 35 percent 

shall be available, in accordance with the requirements of 

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penditure for ecological and economic restoration of the 

Gulf Coast region in accordance with this subsection. 

‘‘(B) USE OF FUNDS.— 

‘‘(i) ELIGIBLE ACTIVITIES IN THE GULF COAST REGION.—Subject to clause (iii), amounts provided to the 

Gulf Coast States under this subsection may only be 

used to carry out 1 or more of the following activities 

in the Gulf Coast region: 

‘‘(I) Restoration and protection of the natural 

resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal wetlands of the 

Gulf Coast region. 

‘‘(II) Mitigation of damage to fish, wildlife, 

and natural resources. 

‘‘(III) Implementation of a federally approved 

marine, coastal, or comprehensive conservation 

management plan, including fisheries monitoring. 

‘‘(IV) Workforce development and job creation. 

‘‘(V) Improvements to or on State parks located 

in coastal areas affected by the Deepwater Horizon 

oil spill. 

‘‘(VI) Infrastructure projects benefitting the 

economy or ecological resources, including port infrastructure. 

‘‘(VII) Coastal flood protection and related infrastructure. 

‘‘(VIII) Planning assistance. 

‘‘(IX) Administrative costs of complying with 

this subsection. 

‘‘(ii) ACTIVITIES TO PROMOTE TOURISM AND SEAFOOD IN THE GULF COAST REGION.—Amounts provided 

to the Gulf Coast States under this subsection may be 

used to carry out 1 or more of the following activities: 

‘‘(I) Promotion of tourism in the Gulf Coast 

Region, including recreational fishing. 

‘‘(II) Promotion of the consumption of seafood 

harvested from the Gulf Coast Region. 

‘‘(iii) LIMITATION.— 

‘‘(I) IN GENERAL.—Of the amounts received by 

a Gulf Coast State under this subsection, not more 

than 3 percent may be used for administrative 

costs eligible under clause (i)(IX). 

‘‘(II) CLAIMS FOR COMPENSATION.—Activities 

funded under this subsection may not be included 

in any claim for compensation paid out by the Oil 

Spill Liability Trust Fund after the date of enactment of this subsection. 

‘‘(C) COASTAL POLITICAL SUBDIVISIONS.— 

‘‘(i) DISTRIBUTION.—In the case of a State where 

the coastal zone includes the entire State— 

‘‘(I) 75 percent of funding shall be provided directly to the 8 disproportionately affected counties 

impacted by the Deepwater Horizon oil spill; and 


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‘‘(II) 25 percent shall be provided directly to 

nondisproportionately impacted counties within 

the State. 

‘‘(ii) NONDISPROPORTIONATELY IMPACTED COUN- TIES.—The total amounts made available to coastal political subdivisions in the State of Florida under clause 

(i)(II) shall be distributed according to the following 

weighted formula: 

‘‘(I) 34 percent based on the weighted average 

of the population of the county. 

‘‘(II) 33 percent based on the weighted average 

of the county per capita sales tax collections estimated for fiscal year 2012. 

‘‘(III) 33 percent based on the inverse proportion of the weighted average distance from the 

Deepwater Horizon oil rig to each of the nearest 

and farthest points of the shoreline. 

‘‘(D) LOUISIANA.— ‘‘(i) IN GENERAL.—Of the total amounts made 

available to the State of Louisiana under this paragraph: 

‘‘(I) 70 percent shall be provided directly to the 

State in accordance with this subsection. 

‘‘(II) 30 percent shall be provided directly to 

parishes in the coastal zone (as defined in section 

304 of the Coastal Zone Management Act of 1972 

(16 U.S.C. 1453)) of the State of Louisiana according to the following weighted formula: 

‘‘(aa) 40 percent based on the weighted average of miles of the parish shoreline oiled. 

‘‘(bb) 40 percent based on the weighted average of the population of the parish. 

‘‘(cc) 20 percent based on the weighted average of the land mass of the parish. 

‘‘(ii) CONDITIONS.— ‘‘(I) LAND USE PLAN.—As a condition of receiving amounts allocated under this paragraph, the 

chief executive of the eligible parish shall certify to 

the Governor of the State that the parish has completed a comprehensive land use plan. 

‘‘(II) OTHER CONDITIONS.—A coastal political 

subdivision receiving funding under this paragraph shall meet all of the conditions in subparagraph (E). 

‘‘(E) CONDITIONS.—As a condition of receiving amounts 

from the Trust Fund, a Gulf Coast State, including the entities described in subparagraph (F), or a coastal political 

subdivision shall— 

‘‘(i) agree to meet such conditions, including audit 

requirements, as the Secretary of the Treasury determines necessary to ensure that amounts disbursed from 

the Trust Fund will be used in accordance with this 

subsection; 

‘‘(ii) certify in such form and in such manner as 

the Secretary of the Treasury determines necessary that 


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the project or program for which the Gulf Coast State 

or coastal political subdivision is requesting amounts— 

‘‘(I) is designed to restore and protect the natural resources, ecosystems, fisheries, marine and 

wildlife habitats, beaches, coastal wetlands, or 

economy of the Gulf Coast; 

‘‘(II) carries out 1 or more of the activities described in clauses (i) and (ii) of subparagraph (B); 

‘‘(III) was selected based on meaningful input 

from the public, including broad-based participation from individuals, businesses, and nonprofit 

organizations; and 

‘‘(IV) in the case of a natural resource protection or restoration project, is based on the best 

available science; 

‘‘(iii) certify that the project or program and the 

awarding of a contract for the expenditure of amounts 

received under this paragraph are consistent with the 

standard procurement rules and regulations governing 

a comparable project or program in that State, including all applicable competitive bidding and audit requirements; and 

‘‘(iv) develop and submit a multiyear implementation plan for the use of such amounts, which may include milestones, projected completion of each activity, 

and a mechanism to evaluate the success of each activity in helping to restore and protect the Gulf Coast region impacted by the Deepwater Horizon oil spill. 

‘‘(F) APPROVAL BY STATE ENTITY, TASK FORCE, OR AGENCY.—The following Gulf Coast State entities, task forces, or 

agencies shall carry out the duties of a Gulf Coast State 

pursuant to this paragraph: 

‘‘(i) ALABAMA.— ‘‘(I) IN GENERAL.—In the State of Alabama, the 

Alabama Gulf Coast Recovery Council, which shall 

be comprised of only the following: 

‘‘(aa) The Governor of Alabama, who shall 

also serve as Chairperson and preside over the 

meetings of the Alabama Gulf Coast Recovery 

Council. 

‘‘(bb) The Director of the Alabama State 

Port Authority, who shall also serve as Vice 

Chairperson and preside over the meetings of 

the Alabama Gulf Coast Recovery Council in 

the absence of the Chairperson. 

‘‘(cc) The Chairman of the Baldwin County Commission. 

‘‘(dd) The President of the Mobile County 

Commission. 

‘‘(ee) The Mayor of the city of Bayou La 

Batre. 

‘‘(ff) The Mayor of the town of Dauphin Island. 

‘‘(gg) The Mayor of the city of Fairhope. 

‘‘(hh) The Mayor of the city of Gulf Shores. 


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‘‘(ii) The Mayor of the city of Mobile. 

‘‘(jj) The Mayor of the city of Orange 

Beach. 

‘‘(II) VOTE.—Each member of the Alabama 

Gulf Coast Recovery Council shall be entitled to 1 

vote. 

‘‘(III) MAJORITY VOTE.—All decisions of the 

Alabama Gulf Coast Recovery Council shall be 

made by majority vote. 

‘‘(IV) LIMITATION ON ADMINISTRATIVE EX- PENSES.—Administrative duties for the Alabama 

Gulf Coast Recovery Council may only be performed by public officials and employees that are 

subject to the ethics laws of the State of Alabama. 

‘‘(ii) LOUISIANA.—In the State of Louisiana, the 

Coastal Protection and Restoration Authority of Louisiana. 

‘‘(iii) MISSISSIPPI.—In the State of Mississippi, the 

Mississippi Department of Environmental Quality. 

‘‘(iv) TEXAS.—In the State of Texas, the Office of 

the Governor or an appointee of the Office of the Governor. 

‘‘(G) COMPLIANCE WITH ELIGIBLE ACTIVITIES.—If the 

Secretary of the Treasury determines that an expenditure 

by a Gulf Coast State or coastal political subdivision of 

amounts made available under this subsection does not 

meet one of the activities described in clauses (i) and (ii) of 

subparagraph (B), the Secretary shall make no additional 

amounts from the Trust Fund available to that Gulf Coast 

State or coastal political subdivision until such time as an 

amount equal to the amount expended for the unauthorized 

use— 

‘‘(i) has been deposited by the Gulf Coast State or 

coastal political subdivision in the Trust Fund; or 

‘‘(ii) has been authorized by the Secretary of the 

Treasury for expenditure by the Gulf Coast State or 

coastal political subdivision for a project or program 

that meets the requirements of this subsection. 

‘‘(H) COMPLIANCE WITH CONDITIONS.—If the Secretary 

of the Treasury determines that a Gulf Coast State or coastal political subdivision does not meet the requirements of 

this paragraph, including the conditions of subparagraph 

(E), where applicable, the Secretary of the Treasury shall 

make no amounts from the Trust Fund available to that 

Gulf Coast State or coastal political subdivision until all 

conditions of this paragraph are met. 

‘‘(I) PUBLIC INPUT.—In meeting any condition of this 

paragraph, a Gulf Coast State may use an appropriate procedure for public consultation in that Gulf Coast State, including consulting with one or more established task forces 

or other entities, to develop recommendations for proposed 

projects and programs that would restore and protect the 

natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands, and economy of the 

Gulf Coast. 


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‘‘(J) PREVIOUSLY APPROVED PROJECTS AND PRO- GRAMS.—A Gulf Coast State or coastal political subdivision 

shall be considered to have met the conditions of subparagraph (E) for a specific project or program if, before the 

date of enactment of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012— 

‘‘(i) the Gulf Coast State or coastal political subdivision has established conditions for carrying out 

projects and programs that are substantively the same 

as the conditions described in subparagraph (E); and 

‘‘(ii) the applicable project or program carries out 

1 or more of the activities described in clauses (i) and 

(ii) of subparagraph (B). 

‘‘(K) LOCAL PREFERENCE.—In awarding contracts to 

carry out a project or program under this paragraph, a 

Gulf Coast State or coastal political subdivision may give 

a preference to individuals and companies that reside in, 

are headquartered in, or are principally engaged in business in the State of project execution. 

‘‘(L) UNUSED FUNDS.—Funds allocated to a State or 

coastal political subdivision under this paragraph shall remain in the Trust Fund until such time as the State or 

coastal political subdivision develops and submits a plan 

identifying uses for those funds in accordance with subparagraph (E)(iv). 

‘‘(M) JUDICIAL REVIEW.—If the Secretary of the Treasury determines that a Gulf Coast State or coastal political 

subdivision does not meet the requirements of this paragraph, including the conditions of subparagraph (E), the 

Gulf Coast State or coastal political subdivision may obtain 

expedited judicial review within 90 days after that decision 

in a district court of the United States, of appropriate jurisdiction and venue, that is located within the State seeking 

the review. 

‘‘(N) COST-SHARING.— ‘‘(i) IN GENERAL.—A Gulf Coast State or coastal 

political subdivision may use, in whole or in part, 

amounts made available under this paragraph to that 

Gulf Coast State or coastal political subdivision to satisfy the non-Federal share of the cost of any project or 

program authorized by Federal law that is an eligible 

activity described in clauses (i) and (ii) of subparagraph (B). 

‘‘(ii) EFFECT ON OTHER FUNDS.—The use of funds 

made available from the Trust Fund to satisfy the nonFederal share of the cost of a project or program that 

meets the requirements of clause (i) shall not affect the 

priority in which other Federal funds are allocated or 

awarded. 

‘‘(2) COUNCIL ESTABLISHMENT AND ALLOCATION.— ‘‘(A) IN GENERAL.—Of the total amount made available 

in any fiscal year from the Trust Fund, 30 percent shall be 

disbursed to the Council to carry out the Comprehensive 

Plan. 


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‘‘(B) COUNCIL EXPENDITURES.— ‘‘(i) IN GENERAL.—In accordance with this paragraph, the Council shall expend funds made available 

from the Trust Fund to undertake projects and programs, using the best available science, that would restore and protect the natural resources, ecosystems, 

fisheries, marine and wildlife habitats, beaches, coastal 

wetlands, and economy of the Gulf Coast. 

‘‘(ii) ALLOCATION AND EXPENDITURE PROCE- DURES.—The Secretary of the Treasury shall develop 

such conditions, including audit requirements, as the 

Secretary of the Treasury determines necessary to ensure that amounts disbursed from the Trust Fund to 

the Council to implement the Comprehensive Plan will 

be used in accordance with this paragraph. 

‘‘(iii) ADMINISTRATIVE EXPENSES.—Of the amounts 

received by the Council under this paragraph, not more 

than 3 percent may be used for administrative expenses, including staff. 

‘‘(C) GULF COAST ECOSYSTEM RESTORATION COUNCIL.— 

‘‘(i) ESTABLISHMENT.—There is established as an 

independent entity in the Federal Government a council to be known as the ‘Gulf Coast Ecosystem Restoration Council’. 

‘‘(ii) MEMBERSHIP.—The Council shall consist of 

the following members, or in the case of a Federal 

agency, a designee at the level of the Assistant Secretary or the equivalent: 

‘‘(I) The Secretary of the Interior. 

‘‘(II) The Secretary of the Army. 

‘‘(III) The Secretary of Commerce. 

‘‘(IV) The Administrator of the Environmental 

Protection Agency. 

‘‘(V) The Secretary of Agriculture. 

‘‘(VI) The head of the department in which the 

Coast Guard is operating. 

‘‘(VII) The Governor of the State of Alabama. 

‘‘(VIII) The Governor of the State of Florida. 

‘‘(IX) The Governor of the State of Louisiana. 

‘‘(X) The Governor of the State of Mississippi. 

‘‘(XI) The Governor of the State of Texas. 

‘‘(iii) ALTERNATE.—A Governor appointed to the 

Council by the President may designate an alternate to 

represent the Governor on the Council and vote on behalf of the Governor. 

‘‘(iv) CHAIRPERSON.—From among the Federal 

agency members of the Council, the representatives of 

States on the Council shall select, and the President 

shall appoint, 1 Federal member to serve as Chairperson of the Council. 

‘‘(v) PRESIDENTIAL APPOINTMENT.—All Council 

members shall be appointed by the President. 

‘‘(vi) COUNCIL ACTIONS.— 

‘‘(I) IN GENERAL.—The following actions by the 

Council shall require the affirmative vote of the 


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Chairperson and a majority of the State members 

to be effective: 

‘‘(aa) Approval of a Comprehensive Plan 

and future revisions to a Comprehensive Plan. 

‘‘(bb) Approval of State plans pursuant to 

paragraph (3)(B)(iv). 

‘‘(cc) Approval of reports to Congress pursuant to clause (vii)(VII). 

‘‘(dd) Approval of transfers pursuant to 

subparagraph (E)(ii)(I). 

‘‘(ee) Other significant actions determined 

by the Council. 

‘‘(II) QUORUM.—A majority of State members 

shall be required to be present for the Council to 

take any significant action. 

‘‘(III) AFFIRMATIVE VOTE REQUIREMENT CONSIDERED MET.—For approval of State plans pursuant to paragraph (3)(B)(iv), the certification by a 

State member of the Council that the plan satisfies 

all requirements of clauses (i) and (ii) of paragraph (3)(B), when joined by an affirmative vote of 

the Federal Chairperson of the Council, shall be 

considered to satisfy the requirements for affirmative votes under subclause (I). 

‘‘(IV) PUBLIC TRANSPARENCY.—Appropriate actions of the Council, including significant actions 

and associated deliberations, shall be made available to the public via electronic means prior to any 

vote. 

‘‘(vii) DUTIES OF COUNCIL.—The Council shall— 

‘‘(I) develop the Comprehensive Plan and future revisions to the Comprehensive Plan; 

‘‘(II) identify as soon as practicable the projects 

that— 

‘‘(aa) have been authorized prior to the 

date of enactment of this subsection but not yet 

commenced; and 

‘‘(bb) if implemented quickly, would restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, barrier islands, dunes, and 

coastal wetlands of the Gulf Coast region; 

‘‘(III) establish such other 1 or more advisory 

committees as may be necessary to assist the Council, including a scientific advisory committee and a 

committee to advise the Council on public policy 

issues; 

‘‘(IV) collect and consider scientific and other 

research associated with restoration of the Gulf 

Coast ecosystem, including research, observation, 

and monitoring carried out pursuant to sections 

1604 and 1605 of the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 2012; 


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‘‘(V) develop standard terms to include in contracts for projects and programs awarded pursuant to the Comprehensive Plan that provide a preference to individuals and companies that reside in, 

are headquartered in, or are principally engaged 

in business in a Gulf Coast State; 

‘‘(VI) prepare an integrated financial plan and 

recommendations for coordinated budget requests 

for the amounts proposed to be expended by the 

Federal agencies represented on the Council for 

projects and programs in the Gulf Coast States; 

and 

‘‘(VII) submit to Congress an annual report 

that— 

‘‘(aa) summarizes the policies, strategies, 

plans, and activities for addressing the restoration and protection of the Gulf Coast region; 

‘‘(bb) describes the projects and programs 

being implemented to restore and protect the 

Gulf Coast region, including— 

‘‘(AA) a list of each project and program; 

‘‘(BB) an identification of the funding 

provided to projects and programs identified in subitem (AA); 

‘‘(CC) an identification of each recipient for funding identified in subitem (BB); 

and 

‘‘(DD) a description of the length of 

time and funding needed to complete the 

objectives of each project and program 

identified in subitem (AA); 

‘‘(cc) makes such recommendations to Congress for modifications of existing laws as the 

Council determines necessary to implement the 

Comprehensive Plan; 

‘‘(dd) reports on the progress on implementation of each project or program— 

‘‘(AA) after 3 years of ongoing activity 

of the project or program, if applicable; 

and 

‘‘(BB) on completion of the project or 

program; 

‘‘(ee) includes the information required to 

be submitted under section 1605(c)(4) of the 

Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies 

of the Gulf Coast States Act of 2012; and 

‘‘(ff) submits the reports required under 

item (dd) to— 

‘‘(AA) the Committee on Science, 

Space, and Technology, the Committee on 

Natural Resources, the Committee on 

Transportation and Infrastructure, and 


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the Committee on Appropriations of the 

House of Representatives; and 

‘‘(BB) the Committee on Environment 

and Public Works, the Committee on Commerce, Science, and Transportation, the 

Committee on Energy and Natural Resources, and the Committee on Appropriations of the Senate. 

‘‘(viii) APPLICATION OF FEDERAL ADVISORY COM- MITTEE ACT.—The Council, or any other advisory committee established under this subparagraph, shall not 

be considered an advisory committee under the Federal 

Advisory Committee Act (5 U.S.C. App.). 

‘‘(ix) SUNSET.—The authority for the Council, and 

any other advisory committee established under this 

subparagraph, shall terminate on the date all funds in 

the Trust Fund have been expended. 

‘‘(D) COMPREHENSIVE PLAN.— ‘‘(i) PROPOSED PLAN.— 

‘‘(I) IN GENERAL.—Not later than 180 days 

after the date of enactment of the Resources and 

Ecosystems Sustainability, Tourist Opportunities, 

and Revived Economies of the Gulf Coast States 

Act of 2012, the Chairperson, on behalf of the 

Council and after appropriate public input, review, 

and comment, shall publish a proposed plan to restore and protect the natural resources, ecosystems, 

fisheries, marine and wildlife habitats, beaches, 

and coastal wetlands of the Gulf Coast region. 

‘‘(II) INCLUSIONS.—The proposed plan described in subclause (I) shall include and incorporate the findings and information prepared by 

the President’s Gulf Coast Restoration Task Force. 

‘‘(ii) PUBLICATION.— 

‘‘(I) INITIAL PLAN.—Not later than 1 year after 

the date of enactment of the Resources and Ecosystems Sustainability, Tourist Opportunities, and 

Revived Economies of the Gulf Coast States Act of 

2012 and after notice and opportunity for public 

comment, the Chairperson, on behalf of the Council and after approval by the Council, shall publish in the Federal Register the initial Comprehensive Plan to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife 

habitats, beaches, and coastal wetlands of the Gulf 

Coast region. 

‘‘(II) COOPERATION WITH GULF COAST RESTORA- TION TASK FORCE.—The Council shall develop the 

initial Comprehensive Plan in close coordination 

with the President’s Gulf Coast Restoration Task 

Force. 

‘‘(III) CONSIDERATIONS.—In developing the initial Comprehensive Plan and subsequent updates, 

the Council shall consider all relevant findings, reports, or research prepared or funded under secVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00204 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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tion 1604 or 1605 of the Resources and Ecosystems 

Sustainability, Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 2012. 

‘‘(IV) CONTENTS.—The initial Comprehensive 

Plan shall include— 

‘‘(aa) such provisions as are necessary to 

fully incorporate in the Comprehensive Plan 

the strategy, projects, and programs recommended by the President’s Gulf Coast Restoration Task Force; 

‘‘(bb) a list of any project or program authorized prior to the date of enactment of this 

subsection but not yet commenced, the completion of which would further the purposes and 

goals of this subsection and of the Resources 

and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf 

Coast States Act of 2012; 

‘‘(cc) a description of the manner in which 

amounts from the Trust Fund projected to be 

made available to the Council for the succeeding 10 years will be allocated; and 

‘‘(dd) subject to available funding in accordance with clause (iii), a prioritized list of 

specific projects and programs to be funded 

and carried out during the 3-year period immediately following the date of publication of 

the initial Comprehensive Plan, including a 

table that illustrates the distribution of 

projects and programs by the Gulf Coast 

State. 

‘‘(V) PLAN UPDATES.—The Council shall update— 

‘‘(aa) the Comprehensive Plan every 5 

years in a manner comparable to the manner 

established in this subparagraph for each 5- 

year period for which amounts are expected to 

be made available to the Gulf Coast States 

from the Trust Fund; and 

‘‘(bb) the 3-year list of projects and programs described in subclause (IV)(dd) annually. 

‘‘(iii) RESTORATION PRIORITIES.—Except for 

projects and programs described in clause (ii)(IV)(bb), 

in selecting projects and programs to include on the 3- 

year list described in clause (ii)(IV)(dd), based on the 

best available science, the Council shall give highest 

priority to projects that address 1 or more of the following criteria: 

‘‘(I) Projects that are projected to make the 

greatest contribution to restoring and protecting 

the natural resources, ecosystems, fisheries, marine 

and wildlife habitats, beaches, and coastal wetlands of the Gulf Coast region, without regard to 

geographic location within the Gulf Coast region. 


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‘‘(II) Large-scale projects and programs that 

are projected to substantially contribute to restoring and protecting the natural resources, ecosystems, fisheries, marine and wildlife habitats, 

beaches, and coastal wetlands of the Gulf Coast 

ecosystem. 

‘‘(III) Projects contained in existing Gulf Coast 

State comprehensive plans for the restoration and 

protection of natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and 

coastal wetlands of the Gulf Coast region. 

‘‘(IV) Projects that restore long-term resiliency 

of the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, and coastal 

wetlands most impacted by the Deepwater Horizon 

oil spill. 

‘‘(E) IMPLEMENTATION.— 

‘‘(i) IN GENERAL.—The Council, acting through the 

Federal agencies represented on the Council and Gulf 

Coast States, shall expend funds made available from 

the Trust Fund to carry out projects and programs 

adopted in the Comprehensive Plan. 

‘‘(ii) ADMINISTRATIVE RESPONSIBILITY.— ‘‘(I) IN GENERAL.—Primary authority and responsibility for each project and program included 

in the Comprehensive Plan shall be assigned by 

the Council to a Gulf Coast State represented on 

the Council or a Federal agency. 

‘‘(II) TRANSFER OF AMOUNTS.—Amounts necessary to carry out each project or program included in the Comprehensive Plan shall be transferred by the Secretary of the Treasury from the 

Trust Fund to that Federal agency or Gulf Coast 

State as the project or program is implemented, 

subject to such conditions as the Secretary of the 

Treasury, in consultation with the Secretary of the 

Interior and the Secretary of Commerce, established pursuant to section 1602 of the Resources 

and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast 

States Act of 2012. 

‘‘(III) LIMITATION ON TRANSFERS.— 

‘‘(aa) GRANTS TO NONGOVERNMENTAL ENTITIES.—In the case of funds transferred to a 

Federal or State agency under subclause (II), 

the agency shall not make 1 or more grants or 

cooperative agreements to a nongovernmental 

entity if the total amount provided to the entity would equal or exceed 10 percent of the total 

amount provided to the agency for that particular project or program, unless the 1 or 

more grants have been reported in accordance 

with item (bb). 

‘‘(bb) REPORTING OF GRANTEES.—At least 

30 days prior to making a grant or entering 


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into a cooperative agreement described in item 

(aa), the name of each grantee, including the 

amount and purpose of each grant or cooperative agreement, shall be published in the Federal Register and delivered to the congressional committees listed in subparagraph 

(C)(vii)(VII)(ff). 

‘‘(cc) ANNUAL REPORTING OF GRANTEES.— Annually, the name of each grantee, including 

the amount and purposes of each grant or cooperative agreement, shall be published in the 

Federal Register and delivered to Congress as 

part of the report submitted pursuant to subparagraph (C)(vii)(VII). 

‘‘(IV) PROJECT AND PROGRAM LIMITATION.— 

The Council, a Federal agency, or a State may not 

carry out a project or program funded under this 

paragraph outside of the Gulf Coast region. 

‘‘(F) COORDINATION.—The Council and the Federal 

members of the Council may develop memoranda of understanding establishing integrated funding and implementation plans among the member agencies and authorities. 

‘‘(3) OIL SPILL RESTORATION IMPACT ALLOCATION.— ‘‘(A) IN GENERAL.— ‘‘(i) DISBURSEMENT.—Of the total amount made 

available from the Trust Fund, 30 percent shall be disbursed pursuant to the formula in clause (ii) to the 

Gulf Coast States on the approval of the plan described 

in subparagraph (B)(i). 

‘‘(ii) FORMULA.—Subject to subparagraph (B), for 

each Gulf Coast State, the amount disbursed under 

this paragraph shall be based on a formula established 

by the Council by regulation that is based on a weighted average of the following criteria: 

‘‘(I) 40 percent based on the proportionate 

number of miles of shoreline in each Gulf Coast 

State that experienced oiling on or before April 10, 

2011, compared to the total number of miles of 

shoreline that experienced oiling as a result of the 

Deepwater Horizon oil spill. 

‘‘(II) 40 percent based on the inverse proportion of the average distance from the mobile offshore drilling unit Deepwater Horizon at the time 

of the explosion to the nearest and farthest point of 

the shoreline that experienced oiling of each Gulf 

Coast State. 

‘‘(III) 20 percent based on the average population in the 2010 decennial census of coastal 

counties bordering the Gulf of Mexico within each 

Gulf Coast State. 

‘‘(iii) MINIMUM ALLOCATION.—The amount disbursed to a Gulf Coast State for each fiscal year under 

clause (ii) shall be at least 5 percent of the total 

amounts made available under this paragraph. 

‘‘(B) DISBURSEMENT OF FUNDS.— 


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‘‘(i) IN GENERAL.—The Council shall disburse 

amounts to the respective Gulf Coast States in accordance with the formula developed under subparagraph 

(A) for projects, programs, and activities that will improve the ecosystems or economy of the Gulf Coast region, subject to the condition that each Gulf Coast 

State submits a plan for the expenditure of amounts 

disbursed under this paragraph that meets the following criteria: 

‘‘(I) All projects, programs, and activities included in the plan are eligible activities pursuant 

to clauses (i) and (ii) of paragraph (1)(B). 

‘‘(II) The projects, programs, and activities included in the plan contribute to the overall economic and ecological recovery of the Gulf Coast. 

‘‘(III) The plan takes into consideration the 

Comprehensive Plan and is consistent with the 

goals and objectives of the Plan, as described in 

paragraph (2)(B)(i). 

‘‘(ii) FUNDING.— 

‘‘(I) IN GENERAL.—Except as provided in subclause (II), the plan described in clause (i) may use 

not more than 25 percent of the funding made 

available for infrastructure projects eligible under 

subclauses (VI) and (VII) of paragraph (1)(B)(i). 

‘‘(II) EXCEPTION.—The plan described in 

clause (i) may propose to use more than 25 percent 

of the funding made available for infrastructure 

projects eligible under subclauses (VI) and (VII) of 

paragraph (1)(B)(i) if the plan certifies that— 

‘‘(aa) ecosystem restoration needs in the 

State will be addressed by the projects in the 

proposed plan; and 

‘‘(bb) additional investment in infrastructure is required to mitigate the impacts of the 

Deepwater Horizon Oil Spill to the ecosystem 

or economy. 

‘‘(iii) DEVELOPMENT.—The plan described in clause 

(i) shall be developed by— 

‘‘(I) in the State of Alabama, the Alabama 

Gulf Coast Recovery Council established under 

paragraph (1)(F)(i); 

‘‘(II) in the State of Florida, a consortia of 

local political subdivisions that includes at a minimum 1 representative of each affected county; 

‘‘(III) in the State of Louisiana, the Coastal 

Protection and Restoration Authority of Louisiana; 

‘‘(IV) in the State of Mississippi, the Office of 

the Governor or an appointee of the Office of the 

Governor; and 

‘‘(V) in the State of Texas, the Office of the 

Governor or an appointee of the Office of the Governor. 

‘‘(iv) APPROVAL.—Not later than 60 days after the 

date on which a plan is submitted under clause (i), the 


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Council shall approve or disapprove the plan based on 

the conditions of clause (i). 

‘‘(C) DISAPPROVAL.—If the Council disapproves a plan 

pursuant to subparagraph (B)(iv), the Council shall— 

‘‘(i) provide the reasons for disapproval in writing; 

and 

‘‘(ii) consult with the State to address any identified deficiencies with the State plan. 

‘‘(D) FAILURE TO SUBMIT ADEQUATE PLAN.—If a State 

fails to submit an adequate plan under this paragraph, any 

funds made available under this paragraph shall remain 

in the Trust Fund until such date as a plan is submitted 

and approved pursuant to this paragraph. 

‘‘(E) JUDICIAL REVIEW.—If the Council fails to approve 

or take action within 60 days on a plan, as described in 

subparagraph (B)(iv), the State may obtain expedited judicial review within 90 days of that decision in a district 

court of the United States, of appropriate jurisdiction and 

venue, that is located within the State seeking the review. 

‘‘(F) COST-SHARING.— ‘‘(i) IN GENERAL.—A Gulf Coast State or coastal 

political subdivision may use, in whole or in part, 

amounts made available to that Gulf Coast State or 

coastal political subdivision under this paragraph to 

satisfy the non-Federal share of any project or program 

that— 

‘‘(I) is authorized by other Federal law; and 

‘‘(II) is an eligible activity described in clause 

(i) or (ii) of paragraph (1)(B). 

‘‘(ii) EFFECT ON OTHER FUNDS.—The use of funds 

made available from the Trust Fund under this paragraph to satisfy the non-Federal share of the cost of a 

project or program described in clause (i) shall not affect the priority in which other Federal funds are allocated or awarded. 

‘‘(4) AUTHORIZATION OF INTEREST TRANSFERS.—Of the total 

amount made available for any fiscal year from the Trust Fund 

that is equal to the interest earned by the Trust Fund and proceeds from investments made by the Trust Fund in the preceding fiscal year— 

‘‘(A) 50 percent shall be divided equally between— 

‘‘(i) the Gulf Coast Ecosystem Restoration Science, 

Observation, Monitoring, and Technology program authorized in section 1604 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012; 

and 

‘‘(ii) the centers of excellence research grants authorized in section 1605 of that Act; and 

‘‘(B) 50 percent shall be made available to the Gulf 

Coast Ecosystem Restoration Council to carry out the Comprehensive Plan pursuant to paragraph (2).’’. 

SEC. 1604. GULF COAST ECOSYSTEM RESTORATION SCIENCE, OBSERVATION, MONITORING, AND TECHNOLOGY PROGRAM. 

(a) DEFINITIONS.—In this section: 


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(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the National Oceanic and Atmospheric Administration. 

(2) COMMISSION.—The term ‘‘Commission’’ means the Gulf 

States Marine Fisheries Commission. 

(3) DIRECTOR.—The term ‘‘Director’’ means the Director of 

the United States Fish and Wildlife Service. 

(4) PROGRAM.—The term ‘‘program’’ means the Gulf Coast 

Ecosystem Restoration Science, Observation, Monitoring, and 

Technology program established under this section. 

(b) ESTABLISHMENT OF PROGRAM.— (1) IN GENERAL.—Not later than 180 days after the date of 

enactment of this Act, the Administrator, in consultation with 

the Director, shall establish the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology program 

to carry out research, observation, and monitoring to support, 

to the maximum extent practicable, the long-term sustainability 

of the ecosystem, fish stocks, fish habitat, and the recreational, 

commercial, and charter fishing industry in the Gulf of Mexico. 

(2) EXPENDITURE OF FUNDS.—For each fiscal year, amounts 

made available to carry out this subsection may be expended 

for, with respect to the Gulf of Mexico— 

(A) marine and estuarine research; 

(B) marine and estuarine ecosystem monitoring and 

ocean observation; 

(C) data collection and stock assessments; 

(D) pilot programs for— 

(i) fishery independent data; and 

(ii) reduction of exploitation of spawning aggregations; and 

(E) cooperative research. 

(3) COOPERATION WITH THE COMMISSION.—For each fiscal 

year, amounts made available to carry out this subsection may 

be transferred to the Commission to establish a fisheries monitoring and research program, with respect to the Gulf of Mexico. 

(4) CONSULTATION.—The Administrator and the Director 

shall consult with the Regional Gulf of Mexico Fishery Management Council and the Commission in carrying out the program. 

(c) SPECIES INCLUDED.—The research, monitoring, assessment, 

and programs eligible for amounts made available under the program shall include all marine, estuarine, aquaculture, and fish species in State and Federal waters of the Gulf of Mexico. 

(d) RESEARCH PRIORITIES.—In distributing funding under this 

subsection, priority shall be given to integrated, long-term projects 

that— 

(1) build on, or are coordinated with, related research activities; and 

(2) address current or anticipated marine ecosystem, fishery, or wildlife management information needs. 

(e) DUPLICATION.—In carrying out this section, the Administrator, in consultation with the Director, shall seek to avoid duplication of other research and monitoring activities. 

(f) COORDINATION WITH OTHER PROGRAMS.—The Administrator, in consultation with the Director, shall develop a plan for the 

coordination of projects and activities between the program and 


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other existing Federal and State science and technology programs in 

the States of Alabama, Florida, Louisiana, Mississippi, and Texas, 

as well as between the centers of excellence. 

(g) LIMITATION ON EXPENDITURES.— (1) IN GENERAL.—Not more than 3 percent of funds provided in subsection (h) shall be used for administrative expenses. 

(2) NOAA.—The funds provided in subsection (h) may not 

be used— 

(A) for any existing or planned research led by the National Oceanic and Atmospheric Administration, unless 

agreed to in writing by the grant recipient; 

(B) to implement existing regulations or initiate new 

regulations promulgated or proposed by the National Oceanic and Atmospheric Administration; or 

(C) to develop or approve a new limited access privilege 

program (as that term is used in section 303A of the Magnuson-Stevens Fishery Conservation and Management Act 

(16 U.S.C. 1853a)) for any fishery under the jurisdiction of 

the South Atlantic, Mid-Atlantic, New England, or Gulf of 

Mexico Fishery Management Councils. 

(h) FUNDING.—Of the total amount made available for each fiscal year for the Gulf Coast Restoration Trust Fund established 

under section 1602, 2.5 percent shall be available to carry out the 

program. 

(i) SUNSET.—The program shall cease operations when all 

funds in the Gulf Coast Restoration Trust Fund established under 

section 1602 have been expended. 

SEC. 1605. CENTERS OF EXCELLENCE RESEARCH GRANTS. 

(a) IN GENERAL.—Of the total amount made available for each 

fiscal year from the Gulf Coast Restoration Trust Fund established 

under section 1602, 2.5 percent shall be made available to the Gulf 

Coast States (as defined in section 311(a) of the Federal Water Pollution Control Act (as added by section 1603 of the Resources and 

Ecosystems Sustainability, Tourist Opportunities, and Revived 

Economies of the Gulf Coast States Act of 2012)), in equal shares, 

exclusively for grants in accordance with subsection (c) to establish 

centers of excellence to conduct research only on the Gulf Coast Region (as defined in section 311 of the Federal Water Pollution Control Act (33. U.S.C. 1321)). 

(b) APPROVAL BY STATE ENTITY, TASK FORCE, OR AGENCY.—The 

duties of a Gulf Coast State under this section shall be carried out 

by the applicable Gulf Coast State entities, task forces, or agencies 

listed in section 311(t)(1)(F) of the Federal Water Pollution Control 

Act (as added by section 1603 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the 

Gulf Coast States Act of 2012), and for the State of Florida, a consortium of public and private research institutions within the State, 

which shall include the Florida Department of Environmental Protection and the Florida Fish and Wildlife Conservation Commission, for that Gulf Coast State. 

(c) GRANTS.— 

(1) IN GENERAL.—A Gulf Coast State shall use the amounts 

made available to carry out this section to award competitive 

grants to nongovernmental entities and consortia in the Gulf 


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Coast region (including public and private institutions of higher education) for the establishment of centers of excellence as described in subsection (d). 

(2) APPLICATION.—To be eligible to receive a grant under 

this subsection, an entity or consortium described in paragraph 

(1) shall submit to a Gulf Coast State an application at such 

time, in such manner, and containing such information as the 

Gulf Coast State determines to be appropriate. 

(3) PRIORITY.—In awarding grants under this subsection, a 

Gulf Coast State shall give priority to entities and consortia 

that demonstrate the ability to establish the broadest cross-section of participants with interest and expertise in any discipline 

described in subsection (d) on which the proposal of the center 

of excellence will be focused. 

(4) REPORTING.— 

(A) IN GENERAL.—Each Gulf Coast State shall provide 

annually to the Gulf Coast Ecosystem Restoration Council 

established under section 311(t)(2)(C) of the Federal Water 

Pollution Control Act (as added by section 1603 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act 

of 2012) information regarding all grants, including the 

amount, discipline or disciplines, and recipients of the 

grants, and in the case of any grant awarded to a consortium, the membership of the consortium. 

(B) INCLUSION.—The Gulf Coast Ecosystem Restoration 

Council shall include the information received under subparagraph (A) in the annual report to Congress of the 

Council required under section 311(t)(2)(C)(vii)(VII) of the 

Federal Water Pollution Control Act (as added by section 

1603 of the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast 

States Act of 2012). 

(d) DISCIPLINES.—Each center of excellence shall focus on 

science, technology, and monitoring in at least 1 of the following 

disciplines: 

(1) Coastal and deltaic sustainability, restoration and protection, including solutions and technology that allow citizens 

to live in a safe and sustainable manner in a coastal delta in 

the Gulf Coast Region. 

(2) Coastal fisheries and wildlife ecosystem research and 

monitoring in the Gulf Coast Region. 

(3) Offshore energy development, including research and 

technology to improve the sustainable and safe development of 

energy resources in the Gulf of Mexico. 

(4) Sustainable and resilient growth, economic and commercial development in the Gulf Coast Region. 

(5) Comprehensive observation, monitoring, and mapping 

of the Gulf of Mexico. 

SEC. 1606. EFFECT. 

(a) DEFINITION OF DEEPWATER HORIZON OIL SPILL.—In this 

section, the term ‘‘Deepwater Horizon oil spill’’ has the meaning 

given the term in section 311(a) of the Federal Water Pollution Control Act (33 U.S.C. 1321(a)). 


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(b) EFFECT AND APPLICATION.—Nothing in this subtitle or any 

amendment made by this subtitle— 

(1) supersedes or otherwise affects any other provision of 

Federal law, including, in particular, laws providing recovery 

for injury to natural resources under the Oil Pollution Act of 

1990 (33 U.S.C. 2701 et seq.) and laws for the protection of 

public health and the environment; or 

(2) applies to any fine collected under section 311 of the 

Federal Water Pollution Control Act (33 U.S.C. 1321) for any 

incident other than the Deepwater Horizon oil spill. 

(c) USE OF FUNDS.—Funds made available under this subtitle 

may be used only for eligible activities specifically authorized by 

this subtitle and the amendments made by this subtitle. 

SEC. 1607. RESTORATION AND PROTECTION ACTIVITY LIMITATIONS. 

(a) WILLING SELLER.—Funds made available under this subtitle may only be used to acquire land or interests in land by purchase, exchange, or donation from a willing seller. 

(b) ACQUISITION OF FEDERAL LAND.—None of the funds made 

available under this subtitle may be used to acquire land in fee title 

by the Federal Government unless— 

(1) the land is acquired by exchange or donation; or 

(2) the acquisition is necessary for the restoration and protection of the natural resources, ecosystems, fisheries, marine 

and wildlife habitats, beaches, and coastal wetlands of the Gulf 

Coast region and has the concurrence of the Governor of the 

State in which the acquisition will take place. 

SEC. 1608. INSPECTOR GENERAL. 

The Office of the Inspector General of the Department of the 

Treasury shall have authority to conduct, supervise, and coordinate 

audits and investigations of projects, programs, and activities funded under this subtitle and the amendments made by this subtitle. 

TITLE II—AMERICA FAST FORWARD 

FINANCING INNOVATION 

SEC. 2001. SHORT TITLE. 

This title may be cited as the ‘‘America Fast Forward Financing 

Innovation Act of 2012’’. 

SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT OF 1998 AMENDMENTS. 

Sections 601 through 609 of title 23, United States Code, are 

amended to read as follows: 

‘‘§ 601. Generally applicable provisions 

‘‘(a) DEFINITIONS.—In this chapter, the following definitions 

apply: 

‘‘(1) CONTINGENT COMMITMENT.—The term ‘contingent commitment’ means a commitment to obligate an amount from future available budget authority that is— 

‘‘(A) contingent on those funds being made available in 

law at a future date; and 

‘‘(B) not an obligation of the Federal Government. 


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‘‘(2) ELIGIBLE PROJECT COSTS.—The term ‘eligible project 

costs’ means amounts substantially all of which are paid by, or 

for the account of, an obligor in connection with a project, including the cost of— 

‘‘(A) development phase activities, including planning, 

feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering and design work, 

and other preconstruction activities; 

‘‘(B) construction, reconstruction, rehabilitation, replacement, and acquisition of real property (including land 

relating to the project and improvements to land), environmental mitigation, construction contingencies, and acquisition of equipment; and 

‘‘(C) capitalized interest necessary to meet market requirements, reasonably required reserve funds, capital 

issuance expenses, and other carrying costs during construction. 

‘‘(3) FEDERAL CREDIT INSTRUMENT.—The term ‘Federal 

credit instrument’ means a secured loan, loan guarantee, or line 

of credit authorized to be made available under this chapter 

with respect to a project. 

‘‘(4) INVESTMENT-GRADE RATING.—The term ‘investmentgrade rating’ means a rating of BBB minus, Baa3, bbb minus, 

BBB (low), or higher assigned by a rating agency to project obligations. 

‘‘(5) LENDER.—The term ‘lender’ means any non-Federal 

qualified institutional buyer (as defined in section 230.144A(a) 

of title 17, Code of Federal Regulations (or any successor regulation), known as Rule 144A(a) of the Securities and Exchange 

Commission and issued under the Securities Act of 1933 (15 

U.S.C. 77a et seq.)), including— 

‘‘(A) a qualified retirement plan (as defined in section 

4974(c) of the Internal Revenue Code of 1986) that is a 

qualified institutional buyer; and 

‘‘(B) a governmental plan (as defined in section 414(d) 

of the Internal Revenue Code of 1986) that is a qualified institutional buyer. 

‘‘(6) LETTER OF INTEREST.—The term ‘letter of interest’ 

means a letter submitted by a potential applicant prior to an 

application for credit assistance in a format prescribed by the 

Secretary on the website of the TIFIA program that— 

‘‘(A) describes the project and the location, purpose, 

and cost of the project; 

‘‘(B) outlines the proposed financial plan, including the 

requested credit assistance and the proposed obligor; 

‘‘(C) provides a status of environmental review; and 

‘‘(D) provides information regarding satisfaction of 

other eligibility requirements of the TIFIA program. 

‘‘(7) LINE OF CREDIT.—The term ‘line of credit’ means an 

agreement entered into by the Secretary with an obligor under 

section 604 to provide a direct loan at a future date upon the 

occurrence of certain events. 

‘‘(8) LIMITED BUYDOWN.—The term ‘limited buydown’ 

means, subject to the conditions described in section 


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603(b)(4)(C), a buydown of the interest rate by the obligor if the 

interest rate has increased between— 

‘‘(A)(i) the date on which a project application acceptable to the Secretary is submitted; or 

‘‘(ii) the date on which the Secretary entered into a 

master credit agreement; and 

‘‘(B) the date on which the Secretary executes the Federal credit instrument. 

‘‘(9) LOAN GUARANTEE.—The term ‘loan guarantee’ means 

any guarantee or other pledge by the Secretary to pay all or 

part of the principal of and interest on a loan or other debt obligation issued by an obligor and funded by a lender. 

‘‘(10) MASTER CREDIT AGREEMENT.—The term ‘master credit 

agreement’ means an agreement to extend credit assistance for 

a program of projects secured by a common security pledge 

(which shall receive an investment grade rating from a rating 

agency), or for a single project covered under section 602(b)(2) 

that would— 

‘‘(A) make contingent commitments of 1 or more secured loans or other Federal credit instruments at future 

dates, subject to the availability of future funds being made 

available to carry out this chapter; 

‘‘(B) establish the maximum amounts and general 

terms and conditions of the secured loans or other Federal 

credit instruments; 

‘‘(C) identify the 1 or more dedicated non-Federal revenue sources that will secure the repayment of the secured 

loans or secured Federal credit instruments; 

‘‘(D) provide for the obligation of funds for the secured 

loans or secured Federal credit instruments after all requirements have been met for the projects subject to the 

master credit agreement, including— 

‘‘(i) completion of an environmental impact statement or similar analysis required under the National 

Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.); 

‘‘(ii) compliance with such other requirements as 

are specified in section 602(c); and 

‘‘(iii) the availability of funds to carry out this 

chapter; and 

‘‘(E) require that contingent commitments result in a financial close and obligation of credit assistance not later 

than 3 years after the date of entry into the master credit 

agreement, or release of the commitment, unless otherwise 

extended by the Secretary. 

‘‘(11) OBLIGOR.—The term ‘obligor’ means a party that— 

‘‘(A) is primarily liable for payment of the principal of 

or interest on a Federal credit instrument; and 

‘‘(B) may be a corporation, partnership, joint venture, 

trust, or governmental entity, agency, or instrumentality. 

‘‘(12) PROJECT.—The term ‘project’ means— 

‘‘(A) any surface transportation project eligible for Federal assistance under this title or chapter 53 of title 49; 


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‘‘(B) a project for an international bridge or tunnel for 

which an international entity authorized under Federal or 

State law is responsible; 

‘‘(C) a project for intercity passenger bus or rail facilities and vehicles, including facilities and vehicles owned by 

the National Railroad Passenger Corporation and components of magnetic levitation transportation systems; and 

‘‘(D) a project that— 

‘‘(i) is a project— 

‘‘(I) for a public freight rail facility or a private facility providing public benefit for highway 

users by way of direct freight interchange between 

highway and rail carriers; 

‘‘(II) for an intermodal freight transfer facility; 

‘‘(III) for a means of access to a facility described in subclause (I) or (II); 

‘‘(IV) for a service improvement for a facility 

described in subclause (I) or (II) (including a capital investment for an intelligent transportation 

system); or 

‘‘(V) that comprises a series of projects described in subclauses (I) through (IV) with the 

common objective of improving the flow of goods; 

‘‘(ii) may involve the combining of private and public sector funds, including investment of public funds 

in private sector facility improvements; 

‘‘(iii) if located within the boundaries of a port terminal, includes only such surface transportation infrastructure modifications as are necessary to facilitate direct intermodal interchange, transfer, and access into 

and out of the port; and 

‘‘(iv) is composed of related highway, surface transportation, transit, rail, or intermodal capital improvement projects eligible for assistance under this section 

in order to meet the eligible project cost threshold 

under section 602, by grouping related projects together 

for that purpose, subject to the condition that the credit 

assistance for the projects is secured by a common 

pledge. 

‘‘(13) PROJECT OBLIGATION.—The term ‘project obligation’ 

means any note, bond, debenture, or other debt obligation 

issued by an obligor in connection with the financing of a 

project, other than a Federal credit instrument. 

‘‘(14) RATING AGENCY.—The term ‘rating agency’ means a 

credit rating agency registered with the Securities and Exchange Commission as a nationally recognized statistical rating 

organization (as that term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))). 

‘‘(15) RURAL INFRASTRUCTURE PROJECT.—The term ‘rural 

infrastructure project’ means a surface transportation infrastructure project located in any area other than a city with a 

population of more than 250,000 inhabitants within the city 

limits. 

‘‘(16) SECURED LOAN.—The term ‘secured loan’ means a direct loan or other debt obligation issued by an obligor and 


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funded by the Secretary in connection with the financing of a 

project under section 603. 

‘‘(17) STATE.—The term ‘State’ has the meaning given the 

term in section 101. 

‘‘(18) SUBSIDY AMOUNT.—The term ‘subsidy amount’ means 

the amount of budget authority sufficient to cover the estimated 

long-term cost to the Federal Government of a Federal credit instrument— 

‘‘(A) calculated on a net present value basis; and 

‘‘(B) excluding administrative costs and any incidental 

effects on governmental receipts or outlays in accordance 

with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 

et seq.). 

‘‘(19) SUBSTANTIAL COMPLETION.—The term ‘substantial 

completion’ means— 

‘‘(A) the opening of a project to vehicular or passenger 

traffic; or 

‘‘(B) a comparable event, as determined by the Secretary and specified in the credit agreement. 

‘‘(20) TIFIA PROGRAM.—The term ‘TIFIA program’ means 

the transportation infrastructure finance and innovation program of the Department. 

‘‘(b) TREATMENT OF CHAPTER.—For purposes of this title, this 

chapter shall be treated as being part of chapter 1. 

‘‘§ 602. Determination of eligibility and project selection 

‘‘(a) ELIGIBILITY.— ‘‘(1) IN GENERAL.—A project shall be eligible to receive credit assistance under this chapter if— 

‘‘(A) the entity proposing to carry out the project submits a letter of interest prior to submission of a formal application for the project; and 

‘‘(B) the project meets the criteria described in this subsection. 

‘‘(2) CREDITWORTHINESS.— ‘‘(A) IN GENERAL.—To be eligible for assistance under 

this chapter, a project shall satisfy applicable creditworthiness standards, which, at a minimum, shall include— 

‘‘(i) a rate covenant, if applicable; 

‘‘(ii) adequate coverage requirements to ensure repayment; 

‘‘(iii) an investment grade rating from at least 2 

rating agencies on debt senior to the Federal credit instrument; and 

‘‘(iv) a rating from at least 2 rating agencies on the 

Federal credit instrument, subject to the condition that, 

with respect to clause (iii), if the total amount of the 

senior debt and the Federal credit instrument is less 

than $75,000,000, 1 rating agency opinion for each of 

the senior debt and Federal credit instrument shall be 

sufficient. 

‘‘(B) SENIOR DEBT.—Notwithstanding subparagraph 

(A), in a case in which the Federal credit instrument is the 

senior debt, the Federal credit instrument shall be required 

to receive an investment grade rating from at least 2 rating 


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agencies, unless the credit instrument is for an amount less 

than $75,000,000, in which case 1 rating agency opinion 

shall be sufficient. 

‘‘(3) INCLUSION IN TRANSPORTATION PLANS AND PRO- GRAMS.—A project shall satisfy the applicable planning and 

programming requirements of sections 134 and 135 at such 

time as an agreement to make available a Federal credit instrument is entered into under this chapter. 

‘‘(4) APPLICATION.—A State, local government, public authority, public-private partnership, or any other legal entity undertaking the project and authorized by the Secretary shall submit a project application that is acceptable to the Secretary. 

‘‘(5) ELIGIBLE PROJECT COSTS.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), to be eligible for assistance under this chapter, a 

project shall have eligible project costs that are reasonably 

anticipated to equal or exceed the lesser of— 

‘‘(i)(I) $50,000,000; or 

‘‘(II) in the case of a rural infrastructure project, 

$25,000,000; and 

‘‘(ii) 331⁄3 percent of the amount of Federal highway assistance funds apportioned for the most recently 

completed fiscal year to the State in which the project 

is located. 

‘‘(B) INTELLIGENT TRANSPORTATION SYSTEM

PROJECTS.—In the case of a project principally involving 

the installation of an intelligent transportation system, eligible project costs shall be reasonably anticipated to equal 

or exceed $15,000,000. 

‘‘(6) DEDICATED REVENUE SOURCES.—The applicable Federal credit instrument shall be repayable, in whole or in part, 

from— 

‘‘(A) tolls; 

‘‘(B) user fees; 

‘‘(C) payments owing to the obligor under a public-private partnership; or 

‘‘(D) other dedicated revenue sources that also secure or 

fund the project obligations. 

‘‘(7) PUBLIC SPONSORSHIP OF PRIVATE ENTITIES.—In the 

case of a project that is undertaken by an entity that is not a 

State or local government or an agency or instrumentality of a 

State or local government, the project that the entity is undertaking shall be publicly sponsored as provided in paragraph 

(3). 

‘‘(8) APPLICATIONS WHERE OBLIGOR WILL BE IDENTIFIED

LATER.—A State, local government, agency or instrumentality of 

a State or local government, or public authority may submit to 

the Secretary an application under paragraph (4), under which 

a private party to a public-private partnership will be— 

‘‘(A) the obligor; and 

‘‘(B) identified later through completion of a procurement and selection of the private party. 

‘‘(9) BENEFICIAL EFFECTS.—The Secretary shall determine 

that financial assistance for the project under this chapter 

will— 


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‘‘(A) foster, if appropriate, partnerships that attract 

public and private investment for the project; 

‘‘(B) enable the project to proceed at an earlier date 

than the project would otherwise be able to proceed or reduce the lifecycle costs (including debt service costs) of the 

project; and 

‘‘(C) reduce the contribution of Federal grant assistance 

for the project. 

‘‘(10) PROJECT READINESS.—To be eligible for assistance 

under this chapter, the applicant shall demonstrate a reasonable expectation that the contracting process for construction of 

the project can commence by not later than 90 days after the 

date on which a Federal credit instrument is obligated for the 

project under this chapter. 

‘‘(b) SELECTION AMONG ELIGIBLE PROJECTS.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish a rolling application process under which projects that are eligible to 

receive credit assistance under subsection (a) shall receive credit 

assistance on terms acceptable to the Secretary, if adequate 

funds are available to cover the subsidy costs associated with 

the Federal credit instrument. 

‘‘(2) ADEQUATE FUNDING NOT AVAILABLE.—If the Secretary 

fully obligates funding to eligible projects in a fiscal year, and 

adequate funding is not available to fund a credit instrument, 

a project sponsor of an eligible project may elect to enter into 

a master credit agreement and wait until the earlier of— 

‘‘(A) the following fiscal year; and 

‘‘(B) the fiscal year during which additional funds are 

available to receive credit assistance. 

‘‘(3) PRELIMINARY RATING OPINION LETTER.—The Secretary 

shall require each project applicant to provide a preliminary 

rating opinion letter from at least 1 rating agency— 

‘‘(A) indicating that the senior obligations of the 

project, which may be the Federal credit instrument, have 

the potential to achieve an investment-grade rating; and 

‘‘(B) including a preliminary rating opinion on the Federal credit instrument. 

‘‘(c) FEDERAL REQUIREMENTS.— 

‘‘(1) IN GENERAL.—In addition to the requirements of this 

title for highway projects, the requirements of chapter 53 of title 

49 for transit projects, and the requirements of section 5333(a) 

of title 49 for rail projects, the following provisions of law shall 

apply to funds made available under this chapter and projects 

assisted with those funds: 

‘‘(A) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 

2000d et seq.). 

‘‘(B) The National Environmental Policy Act of 1969 

(42 U.S.C. 4321 et seq.). 

‘‘(C) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et 

seq.). 

‘‘(2) NEPA.—No funding shall be obligated for a project 

that has not received an environmental categorical exclusion, a 

finding of no significant impact, or a record of decision under 


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the National Environmental Policy Act of 1969 (42 U.S.C. 4321 

et seq.). 

‘‘(d) APPLICATION PROCESSING PROCEDURES.— ‘‘(1) NOTICE OF COMPLETE APPLICATION.—Not later than 30 

days after the date of receipt of an application under this section, the Secretary shall provide to the applicant a written notice to inform the applicant whether— 

‘‘(A) the application is complete; or 

‘‘(B) additional information or materials are needed to 

complete the application. 

‘‘(2) APPROVAL OR DENIAL OF APPLICATION.—Not later than 

60 days after the date of issuance of the written notice under 

paragraph (1), the Secretary shall provide to the applicant a 

written notice informing the applicant whether the Secretary 

has approved or disapproved the application. 

‘‘(e) DEVELOPMENT PHASE ACTIVITIES.—Any credit instrument 

secured under this chapter may be used to finance up to 100 percent 

of the cost of development phase activities as described in section 

601(a)(1)(A). 

‘‘§ 603. Secured loans 

‘‘(a) IN GENERAL.— ‘‘(1) AGREEMENTS.—Subject to paragraphs (2) and (3), the 

Secretary may enter into agreements with 1 or more obligors to 

make secured loans, the proceeds of which shall be used— 

‘‘(A) to finance eligible project costs of any project selected under section 602; 

‘‘(B) to refinance interim construction financing of eligible project costs of any project selected under section 602; 

‘‘(C) to refinance existing Federal credit instruments for 

rural infrastructure projects; or 

‘‘(D) to refinance long-term project obligations or Federal credit instruments, if the refinancing provides additional funding capacity for the completion, enhancement, or 

expansion of any project that— 

‘‘(i) is selected under section 602; or 

‘‘(ii) otherwise meets the requirements of section 

602. 

‘‘(2) LIMITATION ON REFINANCING OF INTERIM CONSTRUC- TION FINANCING.—A loan under paragraph (1) shall not refinance interim construction financing under paragraph (1)(B) 

later than 1 year after the date of substantial completion of the 

project. 

‘‘(3) RISK ASSESSMENT.—Before entering into an agreement 

under this subsection, the Secretary, in consultation with the 

Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for each secured loan, taking into account each rating letter provided by 

an agency under section 602(b)(3)(B). 

‘‘(b) TERMS AND LIMITATIONS.— ‘‘(1) IN GENERAL.—A secured loan under this section with 

respect to a project shall be on such terms and conditions and 

contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary 

determines to be appropriate. 


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‘‘(2) MAXIMUM AMOUNT.—The amount of a secured loan 

under this section shall not exceed the lesser of 49 percent of the 

reasonably anticipated eligible project costs or if the secured 

loan does not receive an investment grade rating, the amount 

of the senior project obligations. 

‘‘(3) PAYMENT.—A secured loan under this section— 

‘‘(A) shall— 

‘‘(i) be payable, in whole or in part, from— 

‘‘(I) tolls; 

‘‘(II) user fees; 

‘‘(III) payments owing to the obligor under a 

public-private partnership; or 

‘‘(IV) other dedicated revenue sources that also 

secure the senior project obligations; and 

‘‘(ii) include a rate covenant, coverage requirement, 

or similar security feature supporting the project obligations; and 

‘‘(B) may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations. 

‘‘(4) INTEREST RATE.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), the interest rate on a secured loan 

under this section shall be not less than the yield on United 

States Treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the 

loan agreement. 

‘‘(B) RURAL INFRASTRUCTURE PROJECTS.— ‘‘(i) IN GENERAL.—The interest rate of a loan offered to a rural infrastructure project under this chapter shall be at 1⁄2 of the Treasury Rate in effect on the 

date of execution of the loan agreement. 

‘‘(ii) APPLICATION.—The rate described in clause (i) 

shall only apply to any portion of a loan the subsidy 

cost of which is funded by amounts set aside for rural 

infrastructure projects under section 608(a)(3)(A). 

‘‘(C) LIMITED BUYDOWNS.—The interest rate of a secured loan under this section may not be lowered by more 

than the lower of— 

‘‘(i) 11⁄2 percentage points (150 basis points); or 

‘‘(ii) the amount of the increase in the interest rate. 

‘‘(5) MATURITY DATE.—The final maturity date of the secured loan shall be the lesser of— 

‘‘(A) 35 years after the date of substantial completion of 

the project; and 

‘‘(B) if the useful life of the capital asset being financed 

is of a lesser period, the useful life of the asset. 

‘‘(6) NONSUBORDINATION.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), the secured loan shall not be subordinated to the 

claims of any holder of project obligations in the event of 

bankruptcy, insolvency, or liquidation of the obligor. 

‘‘(B) PREEXISTING INDENTURE.— ‘‘(i) IN GENERAL.—The Secretary shall waive the requirement under subparagraph (A) for a public agency 

borrower that is financing ongoing capital programs 


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and has outstanding senior bonds under a preexisting 

indenture, if— 

‘‘(I) the secured loan is rated in the A category 

or higher; 

‘‘(II) the secured loan is secured and payable 

from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or 

a system-backed pledge of project revenues; and 

‘‘(III) the TIFIA program share of eligible 

project costs is 33 percent or less. 

‘‘(ii) LIMITATION.—If the Secretary waives the nonsubordination requirement under this subparagraph— 

‘‘(I) the maximum credit subsidy to be paid by 

the Federal Government shall be not more than 10 

percent of the principal amount of the secured 

loan; and 

‘‘(II) the obligor shall be responsible for paying 

the remainder of the subsidy cost, if any. 

‘‘(7) FEES.—The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of making a secured loan under this section. 

‘‘(8) NON-FEDERAL SHARE.—The proceeds of a secured loan 

under this chapter may be used for any non-Federal share of 

project costs required under this title or chapter 53 of title 49, 

if the loan is repayable from non-Federal funds. 

‘‘(9) MAXIMUM FEDERAL INVOLVEMENT.—The total Federal 

assistance provided on a project receiving a loan under this 

chapter shall not exceed 80 percent of the total project cost. 

‘‘(c) REPAYMENT.— 

‘‘(1) SCHEDULE.—The Secretary shall establish a repayment 

schedule for each secured loan under this section based on— 

‘‘(A) the projected cash flow from project revenues and 

other repayment sources; and 

‘‘(B) the useful life of the project. 

‘‘(2) COMMENCEMENT.—Scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than 5 years after the date of substantial completion of the project. 

‘‘(3) DEFERRED PAYMENTS.— 

‘‘(A) IN GENERAL.—If, at any time after the date of substantial completion of the project, the project is unable to 

generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the secured loan, the 

Secretary may, subject to subparagraph (C), allow the obligor to add unpaid principal and interest to the outstanding 

balance of the secured loan. 

‘‘(B) INTEREST.—Any payment deferred under subparagraph (A) shall— 

‘‘(i) continue to accrue interest in accordance with 

subsection (b)(4) until fully repaid; and 

‘‘(ii) be scheduled to be amortized over the remaining term of the loan. 

‘‘(C) CRITERIA.— 


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‘‘(i) IN GENERAL.—Any payment deferral under 

subparagraph (A) shall be contingent on the project 

meeting criteria established by the Secretary. 

‘‘(ii) REPAYMENT STANDARDS.—The criteria established pursuant to clause (i) shall include standards 

for reasonable assurance of repayment. 

‘‘(4) PREPAYMENT.— 

‘‘(A) USE OF EXCESS REVENUES.—Any excess revenues 

that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all 

deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing 

project obligations may be applied annually to prepay the 

secured loan without penalty. 

‘‘(B) USE OF PROCEEDS OF REFINANCING.—The secured 

loan may be prepaid at any time without penalty from the 

proceeds of refinancing from non-Federal funding sources. 

‘‘(d) SALE OF SECURED LOANS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), as soon as 

practicable after substantial completion of a project and after 

notifying the obligor, the Secretary may sell to another entity or 

reoffer into the capital markets a secured loan for the project if 

the Secretary determines that the sale or reoffering can be made 

on favorable terms. 

‘‘(2) CONSENT OF OBLIGOR.—In making a sale or reoffering 

under paragraph (1), the Secretary may not change the original 

terms and conditions of the secured loan without the written 

consent of the obligor. 

‘‘(e) LOAN GUARANTEES.— 

‘‘(1) IN GENERAL.—The Secretary may provide a loan guarantee to a lender in lieu of making a secured loan under this 

section if the Secretary determines that the budgetary cost of the 

loan guarantee is substantially the same as that of a secured 

loan. 

‘‘(2) TERMS.—The terms of a loan guarantee under paragraph (1) shall be consistent with the terms required under this 

section for a secured loan, except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender, with the consent of the Secretary. 

‘‘§ 604. Lines of credit 

‘‘(a) IN GENERAL.— 

‘‘(1) AGREEMENTS.—Subject to paragraphs (2) through (4), 

the Secretary may enter into agreements to make available to 

1 or more obligors lines of credit in the form of direct loans to 

be made by the Secretary at future dates on the occurrence of 

certain events for any project selected under section 602. 

‘‘(2) USE OF PROCEEDS.—The proceeds of a line of credit 

made available under this section shall be available to pay debt 

service on project obligations issued to finance eligible project 

costs, extraordinary repair and replacement costs, operation 

and maintenance expenses, and costs associated with unexpected Federal or State environmental restrictions. 


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‘‘(3) RISK ASSESSMENT.—Before entering into an agreement 

under this subsection, the Secretary, in consultation with the 

Director of the Office of Management and Budget and each rating agency providing a preliminary rating opinion letter under 

section 602(b)(3), shall determine an appropriate capital reserve 

subsidy amount for each line of credit, taking into account the 

rating opinion letter. 

‘‘(4) INVESTMENT-GRADE RATING REQUIREMENT.—The funding of a line of credit under this section shall be contingent on 

the senior obligations of the project receiving an investmentgrade rating from 2 rating agencies. 

‘‘(b) TERMS AND LIMITATIONS.— 

‘‘(1) IN GENERAL.—A line of credit under this section with 

respect to a project shall be on such terms and conditions and 

contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary 

determines to be appropriate. 

‘‘(2) MAXIMUM AMOUNTS.—The total amount of a line of 

credit under this section shall not exceed 33 percent of the reasonably anticipated eligible project costs. 

‘‘(3) DRAWS.—Any draw on a line of credit under this section shall— 

‘‘(A) represent a direct loan; and 

‘‘(B) be made only if net revenues from the project (including capitalized interest, but not including reasonably 

required financing reserves) are insufficient to pay the costs 

specified in subsection (a)(2). 

‘‘(4) INTEREST RATE.—Except as provided in subparagraphs 

(B) and (C) of section 603(b)(4), the interest rate on a direct 

loan resulting from a draw on the line of credit shall be not less 

than the yield on 30-year United States Treasury securities, as 

of the date of execution of the line of credit agreement. 

‘‘(5) SECURITY.—A line of credit issued under this section— 

‘‘(A) shall— 

‘‘(i) be payable, in whole or in part, from— 

‘‘(I) tolls; 

‘‘(II) user fees; 

‘‘(III) payments owing to the obligor under a 

public-private partnership; or 

‘‘(IV) other dedicated revenue sources that also 

secure the senior project obligations; and 

‘‘(ii) include a rate covenant, coverage requirement, 

or similar security feature supporting the project obligations; and 

‘‘(B) may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations. 

‘‘(6) PERIOD OF AVAILABILITY.—The full amount of a line of 

credit under this section, to the extent not drawn upon, shall be 

available during the 10-year period beginning on the date of 

substantial completion of the project. 

‘‘(7) RIGHTS OF THIRD-PARTY CREDITORS.— ‘‘(A) AGAINST FEDERAL GOVERNMENT.—A third-party 

creditor of the obligor shall not have any right against the 

Federal Government with respect to any draw on a line of 

credit under this section. 


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‘‘(B) ASSIGNMENT.—An obligor may assign a line of 

credit under this section to— 

‘‘(i) 1 or more lenders; or 

‘‘(ii) a trustee on the behalf of such a lender. 

‘‘(8) NONSUBORDINATION.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), a direct loan under this section shall not be subordinated to the claims of any holder of project obligations in 

the event of bankruptcy, insolvency, or liquidation of the 

obligor. 

‘‘(B) PRE-EXISTING INDENTURE.— 

‘‘(i) IN GENERAL.—The Secretary shall waive the requirement of subparagraph (A) for a public agency borrower that is financing ongoing capital programs and 

has outstanding senior bonds under a preexisting indenture, if— 

‘‘(I) the line of credit is rated in the A category 

or higher; 

‘‘(II) the TIFIA program loan resulting from a 

draw on the line of credit is payable from pledged 

revenues not affected by project performance, such 

as a tax-backed revenue pledge or a system-backed 

pledge of project revenues; and 

‘‘(III) the TIFIA program share of eligible 

project costs is 33 percent or less. 

‘‘(ii) LIMITATION.—If the Secretary waives the nonsubordination requirement under this subparagraph— 

‘‘(I) the maximum credit subsidy to be paid by 

the Federal Government shall be not more than 10 

percent of the principal amount of the secured 

loan; and 

‘‘(II) the obligor shall be responsible for paying 

the remainder of the subsidy cost. 

‘‘(9) FEES.—The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section. 

‘‘(10) RELATIONSHIP TO OTHER CREDIT INSTRUMENTS.—A 

project that receives a line of credit under this section also shall 

not receive a secured loan or loan guarantee under section 603 

in an amount that, combined with the amount of the line of 

credit, exceeds 49 percent of eligible project costs. 

‘‘(c) REPAYMENT.— 

‘‘(1) TERMS AND CONDITIONS.—The Secretary shall establish 

repayment terms and conditions for each direct loan under this 

section based on— 

‘‘(A) the projected cash flow from project revenues and 

other repayment sources; and 

‘‘(B) the useful life of the asset being financed. 

‘‘(2) TIMING.—All repayments of principal or interest on a 

direct loan under this section shall be scheduled— 

‘‘(A) to commence not later than 5 years after the end 

of the period of availability specified in subsection (b)(6); 

and 


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‘‘(B) to conclude, with full repayment of principal and 

interest, by the date that is 25 years after the end of the period of availability specified in subsection (b)(6). 

‘‘§ 605. Program administration 

‘‘(a) REQUIREMENT.—The Secretary shall establish a uniform 

system to service the Federal credit instruments made available 

under this chapter. 

‘‘(b) FEES.—The Secretary may collect and spend fees, contingent on authority being provided in appropriations Acts, at a level 

that is sufficient to cover— 

‘‘(1) the costs of services of expert firms retained pursuant 

to subsection (d); and 

‘‘(2) all or a portion of the costs to the Federal Government 

of servicing the Federal credit instruments. 

‘‘(c) SERVICER.— 

‘‘(1) IN GENERAL.—The Secretary may appoint a financial 

entity to assist the Secretary in servicing the Federal credit instruments. 

‘‘(2) DUTIES.—A servicer appointed under paragraph (1) 

shall act as the agent for the Secretary. 

‘‘(3) FEE.—A servicer appointed under paragraph (1) shall 

receive a servicing fee, subject to approval by the Secretary. 

‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Secretary may retain the services of expert firms, including counsel, in the field of 

municipal and project finance to assist in the underwriting and 

servicing of Federal credit instruments. 

‘‘(e) EXPEDITED PROCESSING.—The Secretary shall implement 

procedures and measures to economize the time and cost involved 

in obtaining approval and the issuance of credit assistance under 

this chapter. 

‘‘§ 606. State and local permits 

‘‘The provision of credit assistance under this chapter with respect to a project shall not— 

‘‘(1) relieve any recipient of the assistance of any obligation 

to obtain any required State or local permit or approval with 

respect to the project; 

‘‘(2) limit the right of any unit of State or local government 

to approve or regulate any rate of return on private equity invested in the project; or 

‘‘(3) otherwise supersede any State or local law (including 

any regulation) applicable to the construction or operation of 

the project. 

‘‘§ 607. Regulations 

‘‘The Secretary may promulgate such regulations as the Secretary determines to be appropriate to carry out this chapter. 

‘‘§ 608. Funding 

‘‘(a) FUNDING.— ‘‘(1) SPENDING AND BORROWING AUTHORITY.—Spending and 

borrowing authority for a fiscal year to enter into Federal credit 

instruments shall be promptly apportioned to the Secretary on 

a fiscal-year basis. 


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‘‘(2) REESTIMATES.—If the subsidy cost of a Federal credit 

instrument is reestimated, the cost increase or decrease of the 

reestimate shall be borne by, or benefit, the general fund of the 

Treasury, consistent with section 504(f) the Congressional 

Budget Act of 1974 (2 U.S.C. 661c(f)). 

‘‘(3) RURAL SET-ASIDE.— ‘‘(A) IN GENERAL.—Of the total amount of funds made 

available to carry out this chapter for each fiscal year, not 

more than 10 percent shall be set aside for rural infrastructure projects. 

‘‘(B) REOBLIGATION.—Any amounts set aside under 

subparagraph (A) that remain unobligated by June 1 of the 

fiscal year for which the amounts were set aside shall be 

available for obligation by the Secretary on projects other 

than rural infrastructure projects. 

‘‘(4) REDISTRIBUTION OF AUTHORIZED FUNDING.— 

‘‘(A) IN GENERAL.—Beginning in fiscal year 2014, on 

April 1 of each fiscal year, if the cumulative unobligated 

and uncommitted balance of funding available exceeds 75 

percent of the amount made available to carry out this 

chapter for that fiscal year, the Secretary shall distribute to 

the States the amount of funds and associated obligation 

authority in excess of that amount. 

‘‘(B) DISTRIBUTION.—The amounts and obligation authority distributed under this paragraph shall be distributed, in the same manner as obligation authority is distributed to the States for the fiscal year, based on the proportion that— 

‘‘(i) the relative share of each State of obligation 

authority for the fiscal year; bears to 

‘‘(ii) the total amount of obligation authority distributed to all States for the fiscal year. 

‘‘(C) PURPOSE.—Funds distributed under subparagraph (B) shall be available for any purpose described in 

section 133(b). 

‘‘(5) AVAILABILITY.—Amounts made available to carry out 

this chapter shall remain available until expended. 

‘‘(6) ADMINISTRATIVE COSTS.—Of the amounts made available to carry out this chapter, the Secretary may use not more 

than 0.50 percent for each fiscal year for the administration of 

this chapter. 

‘‘(b) CONTRACT AUTHORITY.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

law, execution of a term sheet by the Secretary of a Federal 

credit instrument that uses amounts made available under this 

chapter shall impose on the United States a contractual obligation to fund the Federal credit investment. 

‘‘(2) AVAILABILITY.—Amounts made available to carry out 

this chapter for a fiscal year shall be available for obligation 

on October 1 of the fiscal year. 

‘‘§ 609. Reports to Congress 

‘‘(a) IN GENERAL.—On June 1, 2012, and every 2 years thereafter, the Secretary shall submit to Congress a report summarizing 

the financial performance of the projects that are receiving, or have 


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received, assistance under this chapter (other than section 610), including a recommendation as to whether the objectives of this chapter (other than section 610) are best served by— 

‘‘(1) continuing the program under the authority of the Secretary; 

‘‘(2) establishing a Federal corporation or federally sponsored enterprise to administer the program; or 

‘‘(3) phasing out the program and relying on the capital 

markets to fund the types of infrastructure investments assisted 

by this chapter (other than section 610) without Federal participation. 

‘‘(b) APPLICATION PROCESS REPORT.— 

‘‘(1) IN GENERAL.—Not later than December 1, 2012, and 

annually thereafter, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of 

Representatives and the Committee on Environment and Public 

Works of the Senate a report that includes a list of all of the 

letters of interest and applications received from project sponsors for assistance under this chapter (other than section 610) 

during the preceding fiscal year. 

‘‘(2) INCLUSIONS.— 

‘‘(A) IN GENERAL.—Each report under paragraph (1) 

shall include, at a minimum, a description of, with respect 

to each letter of interest and application included in the report— 

‘‘(i) the date on which the letter of interest or application was received; 

‘‘(ii) the date on which a notification was provided 

to the project sponsor regarding whether the application was complete or incomplete; 

‘‘(iii) the date on which a revised and completed 

application was submitted (if applicable); 

‘‘(iv) the date on which a notification was provided 

to the project sponsor regarding whether the project 

was approved or disapproved; and 

‘‘(v) if the project was not approved, the reason for 

the disapproval. 

‘‘(B) CORRESPONDENCE.—Each report under paragraph 

(1) shall include copies of any correspondence provided to 

the project sponsor in accordance with section 602(d).’’. 

DIVISION B—PUBLIC TRANSPORTATION 

SEC. 20001. SHORT TITLE. 

This division may be cited as the ‘‘Federal Public Transportation Act of 2012’’. 

SEC. 20002. REPEALS. 

(a) CHAPTER 53.—Chapter 53 of title 49, United States Code, is 

amended by striking sections 5308, 5316, 5317, 5320, and 5328. 

(b) TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY.— 

Section 3038 of the Transportation Equity Act for the 21st Century 

(49 U.S.C. 5310 note) is repealed. 

(c) SAFETEA–LU.—The following provisions are repealed: 


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(1) Section 3009(i) of SAFETEA–LU (Public Law 109–59; 

119 Stat. 1572). 

(2) Section 3011(c) of SAFETEA–LU (49 U.S.C. 5309 note). 

(3) Section 3012(b) of SAFETEA–LU (49 U.S.C. 5310 note). 

(4) Section 3045 of SAFETEA–LU (49 U.S.C. 5308 note). 

(5) Section 3046 of SAFETEA–LU (49 U.S.C. 5338 note). 

SEC. 20003. POLICIES AND PURPOSES. 

Section 5301 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5301. Policies and purposes 

‘‘(a) DECLARATION OF POLICY.—It is in the interest of the United 

States, including the economic interest of the United States, to foster 

the development and revitalization of public transportation systems 

with the cooperation of both public transportation companies and 

private companies engaged in public transportation. 

‘‘(b) GENERAL PURPOSES.—The purposes of this chapter are to— 

‘‘(1) provide funding to support public transportation; 

‘‘(2) improve the development and delivery of capital 

projects; 

‘‘(3) establish standards for the state of good repair of public transportation infrastructure and vehicles; 

‘‘(4) promote continuing, cooperative, and comprehensive 

planning that improves the performance of the transportation 

network; 

‘‘(5) establish a technical assistance program to assist recipients under this chapter to more effectively and efficiently 

provide public transportation service; 

‘‘(6) continue Federal support for public transportation providers to deliver high quality service to all users, including individuals with disabilities, seniors, and individuals who depend on public transportation; 

‘‘(7) support research, development, demonstration, and deployment projects dedicated to assisting in the delivery of efficient and effective public transportation service; and 

‘‘(8) promote the development of the public transportation 

workforce.’’. 

SEC. 20004. DEFINITIONS. 

Section 5302 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5302. Definitions 

‘‘Except as otherwise specifically provided, in this chapter the 

following definitions apply: 

‘‘(1) ASSOCIATED TRANSIT IMPROVEMENT.—The term ‘associated transit improvement’ means, with respect to any project or 

an area to be served by a project, projects that are designed to 

enhance public transportation service or use and that are physically or functionally related to transit facilities. Eligible 

projects are— 

‘‘(A) historic preservation, rehabilitation, and operation 

of historic public transportation buildings, structures, and 

facilities (including historic bus and railroad facilities) intended for use in public transportation service; 


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‘‘(B) bus shelters; 

‘‘(C) landscaping and streetscaping, including benches, 

trash receptacles, and street lights; 

‘‘(D) pedestrian access and walkways; 

‘‘(E) bicycle access, including bicycle storage facilities 

and installing equipment for transporting bicycles on public transportation vehicles; 

‘‘(F) signage; or 

‘‘(G) enhanced access for persons with disabilities to 

public transportation. 

‘‘(2) BUS RAPID TRANSIT SYSTEM.—The term ‘bus rapid 

transit system’ means a bus transit system— 

‘‘(A) in which the majority of each line operates in a 

separated right-of-way dedicated for public transportation 

use during peak periods; and 

‘‘(B) that includes features that emulate the services 

provided by rail fixed guideway public transportation systems, including— 

‘‘(i) defined stations; 

‘‘(ii) traffic signal priority for public transportation 

vehicles; 

‘‘(iii) short headway bidirectional services for a 

substantial part of weekdays and weekend days; and 

‘‘(iv) any other features the Secretary may determine are necessary to produce high-quality public 

transportation services that emulate the services provided by rail fixed guideway public transportation systems. 

‘‘(3) CAPITAL PROJECT.—The term ‘capital project’ means a 

project for— 

‘‘(A) acquiring, constructing, supervising, or inspecting 

equipment or a facility for use in public transportation, expenses incidental to the acquisition or construction (including designing, engineering, location surveying, mapping, 

and acquiring rights-of-way), payments for the capital portions of rail trackage rights agreements, transit-related intelligent transportation systems, relocation assistance, acquiring replacement housing sites, and acquiring, constructing, relocating, and rehabilitating replacement housing; 

‘‘(B) rehabilitating a bus; 

‘‘(C) remanufacturing a bus; 

‘‘(D) overhauling rail rolling stock; 

‘‘(E) preventive maintenance; 

‘‘(F) leasing equipment or a facility for use in public 

transportation, subject to regulations that the Secretary 

prescribes limiting the leasing arrangements to those that 

are more cost-effective than purchase or construction; 

‘‘(G) a joint development improvement that— 

‘‘(i) enhances economic development or incorporates 

private investment, such as commercial and residential 

development; 

‘‘(ii)(I) enhances the effectiveness of public transportation and is related physically or functionally to 

public transportation; or 


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‘‘(II) establishes new or enhanced coordination between public transportation and other transportation; 

‘‘(iii) provides a fair share of revenue that will be 

used for public transportation; 

‘‘(iv) provides that a person making an agreement 

to occupy space in a facility constructed under this 

paragraph shall pay a fair share of the costs of the facility through rental payments and other means; 

‘‘(v) may include— 

‘‘(I) property acquisition; 

‘‘(II) demolition of existing structures; 

‘‘(III) site preparation; 

‘‘(IV) utilities; 

‘‘(V) building foundations; 

‘‘(VI) walkways; 

‘‘(VII) pedestrian and bicycle access to a public 

transportation facility; 

‘‘(VIII) construction, renovation, and improvement of intercity bus and intercity rail stations 

and terminals; 

‘‘(IX) renovation and improvement of historic 

transportation facilities; 

‘‘(X) open space; 

‘‘(XI) safety and security equipment and facilities (including lighting, surveillance, and related 

intelligent transportation system applications); 

‘‘(XII) facilities that incorporate community 

services such as daycare or health care; 

‘‘(XIII) a capital project for, and improving, 

equipment or a facility for an intermodal transfer 

facility or transportation mall; and 

‘‘(XIV) construction of space for commercial 

uses; and 

‘‘(vi) does not include outfitting of commercial 

space (other than an intercity bus or rail station or terminal) or a part of a public facility not related to public transportation; 

‘‘(H) the introduction of new technology, through innovative and improved products, into public transportation; 

‘‘(I) the provision of nonfixed route paratransit transportation services in accordance with section 223 of the 

Americans with Disabilities Act of 1990 (42 U.S.C. 12143), 

but only for grant recipients that are in compliance with 

applicable requirements of that Act, including both fixed 

route and demand responsive service, and only for amounts 

not to exceed 10 percent of such recipient’s annual formula 

apportionment under sections 5307 and 5311; 

‘‘(J) establishing a debt service reserve, made up of deposits with a bondholder’s trustee, to ensure the timely payment of principal and interest on bonds issued by a grant 

recipient to finance an eligible project under this chapter; 

‘‘(K) mobility management— 

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tation service providers carried out by a recipient or 

subrecipient through an agreement entered into with a 

person, including a governmental entity, under this 

chapter (other than section 5309); but 

‘‘(ii) excluding operating public transportation 

services; or 

‘‘(L) associated capital maintenance, including— 

‘‘(i) equipment, tires, tubes, and material, each 

costing at least .5 percent of the current fair market 

value of rolling stock comparable to the rolling stock 

for which the equipment, tires, tubes, and material are 

to be used; and 

‘‘(ii) reconstruction of equipment and material, 

each of which after reconstruction will have a fair market value of at least .5 percent of the current fair market value of rolling stock comparable to the rolling 

stock for which the equipment and material will be 

used. 

‘‘(4) DESIGNATED RECIPIENT.—The term ‘designated recipient’ means— 

‘‘(A) an entity designated, in accordance with the planning process under sections 5303 and 5304, by the Governor of a State, responsible local officials, and publicly 

owned operators of public transportation, to receive and apportion amounts under section 5336 to urbanized areas of 

200,000 or more in population; or 

‘‘(B) a State or regional authority, if the authority is responsible under the laws of a State for a capital project 

and for financing and directly providing public transportation. 

‘‘(5) DISABILITY.—The term ‘disability’ has the same meaning as in section 3(1) of the Americans with Disabilities Act of 

1990 (42 U.S.C. 12102). 

‘‘(6) EMERGENCY REGULATION.—The term ‘emergency regulation’ means a regulation— 

‘‘(A) that is effective temporarily before the expiration of 

the otherwise specified periods of time for public notice and 

comment under section 5334(c); and 

‘‘(B) prescribed by the Secretary as the result of a finding that a delay in the effective date of the regulation— 

‘‘(i) would injure seriously an important public interest; 

‘‘(ii) would frustrate substantially legislative policy 

and intent; or 

‘‘(iii) would damage seriously a person or class 

without serving an important public interest. 

‘‘(7) FIXED GUIDEWAY.—The term ‘fixed guideway’ means a 

public transportation facility— 

‘‘(A) using and occupying a separate right-of-way for 

the exclusive use of public transportation; 

‘‘(B) using rail; 

‘‘(C) using a fixed catenary system; 

‘‘(D) for a passenger ferry system; or 

‘‘(E) for a bus rapid transit system. 

‘‘(8) GOVERNOR.—The term ‘Governor’— 


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‘‘(A) means the Governor of a State, the mayor of the 

District of Columbia, and the chief executive officer of a territory of the United States; and 

‘‘(B) includes the designee of the Governor. 

‘‘(9) JOB ACCESS AND REVERSE COMMUTE PROJECT.— ‘‘(A) IN GENERAL.—The term ‘job access and reverse 

commute project’ means a transportation project to finance 

planning, capital, and operating costs that support the development and maintenance of transportation services designed to transport welfare recipients and eligible low-income individuals to and from jobs and activities related to 

their employment, including transportation projects that facilitate the provision of public transportation services from 

urbanized areas and rural areas to suburban employment 

locations. 

‘‘(B) DEFINITIONS.—In this paragraph: 

‘‘(i) ELIGIBLE LOW-INCOME INDIVIDUAL.—The term 

‘eligible low-income individual’ means an individual 

whose family income is at or below 150 percent of the 

poverty line (as that term is defined in section 673(2) 

of the Community Service Block Grant Act (42 U.S.C. 

9902(2)), including any revision required by that section) for a family of the size involved. 

‘‘(ii) WELFARE RECIPIENT.—The term ‘welfare recipient’ means an individual who has received assistance under a State or tribal program funded under 

part A of title IV of the Social Security Act (42 U.S.C. 

601 et seq.) at any time during the 3-year period before 

the date on which the applicant applies for a grant 

under section 5307 or 5311. 

‘‘(10) LOCAL GOVERNMENTAL AUTHORITY.—The term ‘local 

governmental authority’ includes— 

‘‘(A) a political subdivision of a State; 

‘‘(B) an authority of at least 1 State or political subdivision of a State; 

‘‘(C) an Indian tribe; and 

‘‘(D) a public corporation, board, or commission established under the laws of a State. 

‘‘(11) LOW-INCOME INDIVIDUAL.—The term ‘low-income individual’ means an individual whose family income is at or below 

150 percent of the poverty line, as that term is defined in section 

673(2) of the Community Services Block Grant Act (42 U.S.C. 

9902(2)), including any revision required by that section, for a 

family of the size involved. 

‘‘(12) NET PROJECT COST.—The term ‘net project cost’ means 

the part of a project that reasonably cannot be financed from 

revenues. 

‘‘(13) NEW BUS MODEL.—The term ‘new bus model’ means 

a bus model (including a model using alternative fuel)— 

‘‘(A) that has not been used in public transportation in 

the United States before the date of production of the 

model; or 

‘‘(B) used in public transportation in the United States, 

but being produced with a major change in configuration 

or components. 


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‘‘(14) PUBLIC TRANSPORTATION.—The term ‘public transportation’— 

‘‘(A) means regular, continuing shared-ride surface 

transportation services that are open to the general public 

or open to a segment of the general public defined by age, 

disability, or low income; and 

‘‘(B) does not include— 

‘‘(i) intercity passenger rail transportation provided 

by the entity described in chapter 243 (or a successor 

to such entity); 

‘‘(ii) intercity bus service; 

‘‘(iii) charter bus service; 

‘‘(iv) school bus service; 

‘‘(v) sightseeing service; 

‘‘(vi) courtesy shuttle service for patrons of one or 

more specific establishments; or 

‘‘(vii) intra-terminal or intra-facility shuttle services. 

‘‘(15) REGULATION.—The term ‘regulation’ means any part 

of a statement of general or particular applicability of the Secretary designed to carry out, interpret, or prescribe law or policy 

in carrying out this chapter. 

‘‘(16) RURAL AREA.—The term ‘rural area’ means an area 

encompassing a population of less than 50,000 people that has 

not been designated in the most recent decennial census as an 

‘urbanized area’ by the Secretary of Commerce. 

‘‘(17) SECRETARY.—The term ‘Secretary’ means the Secretary of Transportation. 

‘‘(18) SENIOR.—The term ‘senior’ means an individual who 

is 65 years of age or older. 

‘‘(19) STATE.—The term ‘State’ means a State of the United 

States, the District of Columbia, Puerto Rico, the Northern 

Mariana Islands, Guam, American Samoa, and the Virgin Islands. 

‘‘(20) STATE OF GOOD REPAIR.—The term ‘state of good repair’ has the meaning given that term by the Secretary, by rule, 

under section 5326(b). 

‘‘(21) TRANSIT.—The term ‘transit’ means public transportation. 

‘‘(22) URBAN AREA.—The term ‘urban area’ means an area 

that includes a municipality or other built-up place that the 

Secretary, after considering local patterns and trends of urban 

growth, decides is appropriate for a local public transportation 

system to serve individuals in the locality. 

‘‘(23) URBANIZED AREA.—The term ‘urbanized area’ means 

an area encompassing a population of not less than 50,000 people that has been defined and designated in the most recent decennial census as an ‘urbanized area’ by the Secretary of Commerce.’’. 

SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING. 

(a) AMENDMENT.—Section 5303 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5303. Metropolitan transportation planning 

‘‘(a) POLICY.—It is in the national interest— 


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‘‘(1) to encourage and promote the safe and efficient management, operation, and development of surface transportation 

systems that will serve the mobility needs of people and freight 

and foster economic growth and development within and between States and urbanized areas, while minimizing transportation-related fuel consumption and air pollution through metropolitan and statewide transportation planning processes identified in this chapter; and 

‘‘(2) to encourage the continued improvement and evolution 

of the metropolitan and statewide transportation planning processes by metropolitan planning organizations, State departments of transportation, and public transit operators as guided 

by the planning factors identified in subsection (h) and section 

5304(d). 

‘‘(b) DEFINITIONS.—In this section and section 5304, the following definitions apply: 

‘‘(1) METROPOLITAN PLANNING AREA.—The term ‘metropolitan planning area’ means the geographic area determined by 

agreement between the metropolitan planning organization for 

the area and the Governor under subsection (e). 

‘‘(2) METROPOLITAN PLANNING ORGANIZATION.—The term 

‘metropolitan planning organization’ means the policy board of 

an organization established as a result of the designation process under subsection (d). 

‘‘(3) NONMETROPOLITAN AREA.—The term ‘nonmetropolitan 

area’ means a geographic area outside designated metropolitan 

planning areas. 

‘‘(4) NONMETROPOLITAN LOCAL OFFICIAL.—The term ‘nonmetropolitan local official’ means elected and appointed officials of general purpose local government in a nonmetropolitan 

area with responsibility for transportation. 

‘‘(5) REGIONAL TRANSPORTATION PLANNING ORGANIZATION.—The term ‘regional transportation planning organization’ means a policy board of an organization established as the 

result of a designation under section 5304(l). 

‘‘(6) TIP.—The term ‘TIP’ means a transportation improvement program developed by a metropolitan planning organization under subsection (j). 

‘‘(7) URBANIZED AREA.—The term ‘urbanized area’ means a 

geographic area with a population of 50,000 or more, as determined by the Bureau of the Census. 

‘‘(c) GENERAL REQUIREMENTS.— 

‘‘(1) DEVELOPMENT OF LONG-RANGE PLANS AND TIPS.—To 

accomplish the objectives in subsection (a), metropolitan planning organizations designated under subsection (d), in cooperation with the State and public transportation operators, shall 

develop long-range transportation plans and transportation improvement programs through a performance-driven, outcomebased approach to planning for metropolitan areas of the State. 

‘‘(2) CONTENTS.—The plans and TIPs for each metropolitan 

area shall provide for the development and integrated management and operation of transportation systems and facilities (including accessible pedestrian walkways and bicycle transportation facilities) that will function as an intermodal transportation system for the metropolitan planning area and as an inVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00235 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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tegral part of an intermodal transportation system for the State 

and the United States. 

‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing the plans and TIPs shall provide for consideration of all 

modes of transportation and shall be continuing, cooperative, 

and comprehensive to the degree appropriate, based on the complexity of the transportation problems to be addressed. 

‘‘(d) DESIGNATION OF METROPOLITAN PLANNING ORGANIZATIONS.— 

‘‘(1) IN GENERAL.—To carry out the transportation planning 

process required by this section, a metropolitan planning organization shall be designated for each urbanized area with a 

population of more than 50,000 individuals— 

‘‘(A) by agreement between the Governor and units of 

general purpose local government that together represent at 

least 75 percent of the affected population (including the 

largest incorporated city (based on population) as determined by the Bureau of the Census); or 

‘‘(B) in accordance with procedures established by applicable State or local law. 

‘‘(2) STRUCTURE.—Not later than 2 years after the date of 

enactment of the Federal Public Transportation Act of 2012, 

each metropolitan planning organization that serves an area 

designated as a transportation management area shall consist 

of— 

‘‘(A) local elected officials; 

‘‘(B) officials of public agencies that administer or operate major modes of transportation in the metropolitan area, 

including representation by providers of public transportation; and 

‘‘(C) appropriate State officials. 

‘‘(3) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing 

in this subsection shall be construed to interfere with the authority, under any State law in effect on December 18, 1991, of 

a public agency with multimodal transportation responsibilities— 

‘‘(A) to develop the plans and TIPs for adoption by a 

metropolitan planning organization; and 

‘‘(B) to develop long-range capital plans, coordinate 

transit services and projects, and carry out other activities 

pursuant to State law. 

‘‘(4) CONTINUING DESIGNATION.—A designation of a metropolitan planning organization under this subsection or any 

other provision of law shall remain in effect until the metropolitan planning organization is redesignated under paragraph (5). 

‘‘(5) REDESIGNATION PROCEDURES.— 

‘‘(A) IN GENERAL.—A metropolitan planning organization may be redesignated by agreement between the Governor and units of general purpose local government that 

together represent at least 75 percent of the existing planning area population (including the largest incorporated 

city (based on population) as determined by the Bureau of 

the Census) as appropriate to carry out this section. 


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‘‘(B) RESTRUCTURING.—A metropolitan planning organization may be restructured to meet the requirements of 

paragraph (2) without undertaking a redesignation. 

‘‘(6) DESIGNATION OF MORE THAN 1 METROPOLITAN PLANNING ORGANIZATION.—More than 1 metropolitan planning organization may be designated within an existing metropolitan 

planning area only if the Governor and the existing metropolitan planning organization determine that the size and complexity of the existing metropolitan planning area make designation of more than 1 metropolitan planning organization for 

the area appropriate. 

‘‘(e) METROPOLITAN PLANNING AREA BOUNDARIES.— 

‘‘(1) IN GENERAL.—For the purposes of this section, the 

boundaries of a metropolitan planning area shall be determined 

by agreement between the metropolitan planning organization 

and the Governor. 

‘‘(2) INCLUDED AREA.—Each metropolitan planning area— 

‘‘(A) shall encompass at least the existing urbanized 

area and the contiguous area expected to become urbanized 

within a 20-year forecast period for the transportation plan; 

and 

‘‘(B) may encompass the entire metropolitan statistical 

area or consolidated metropolitan statistical area, as defined by the Bureau of the Census. 

‘‘(3) IDENTIFICATION OF NEW URBANIZED AREAS WITHIN EXISTING PLANNING AREA BOUNDARIES.—The designation by the 

Bureau of the Census of new urbanized areas within an existing 

metropolitan planning area shall not require the redesignation 

of the existing metropolitan planning organization. 

‘‘(4) EXISTING METROPOLITAN PLANNING AREAS IN NONATTAINMENT.— 

‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), except as provided in subparagraph (B), in the case of an urbanized area designated as a nonattainment area for ozone 

or carbon monoxide under the Clean Air Act (42 U.S.C. 

7401 et seq.) as of the date of enactment of the SAFETEA– 

LU, the boundaries of the metropolitan planning area in 

existence as of such date of enactment shall be retained. 

‘‘(B) EXCEPTION.—The boundaries described in subparagraph (A) may be adjusted by agreement of the Governor and affected metropolitan planning organizations in 

the manner described in subsection (d)(5). 

‘‘(5) NEW METROPOLITAN PLANNING AREAS IN NONATTAINMENT.—In the case of an urbanized area designated after the 

date of enactment of the SAFETEA–LU, as a nonattainment 

area for ozone or carbon monoxide, the boundaries of the metropolitan planning area— 

‘‘(A) shall be established in the manner described in 

subsection (d)(1); 

‘‘(B) shall encompass the areas described in paragraph 

(2)(A); 

‘‘(C) may encompass the areas described in paragraph 

(2)(B); and 


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‘‘(D) may address any nonattainment area identified 

under the Clean Air Act (42 U.S.C. 7401 et seq.) for ozone 

or carbon monoxide. 

‘‘(f) COORDINATION IN MULTISTATE AREAS.— ‘‘(1) IN GENERAL.—The Secretary shall encourage each Governor with responsibility for a portion of a multistate metropolitan area and the appropriate metropolitan planning organizations to provide coordinated transportation planning for the entire metropolitan area. 

‘‘(2) INTERSTATE COMPACTS.—The consent of Congress is 

granted to any 2 or more States— 

‘‘(A) to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative efforts and mutual assistance in support of activities authorized under this section as the activities pertain to interstate 

areas and localities within the States; and 

‘‘(B) to establish such agencies, joint or otherwise, as 

the States may determine desirable for making the agreements and compacts effective. 

‘‘(3) RESERVATION OF RIGHTS.—The right to alter, amend, 

or repeal interstate compacts entered into under this subsection 

is expressly reserved. 

‘‘(g) MPO CONSULTATION IN PLAN AND TIP COORDINATION.— ‘‘(1) NONATTAINMENT AREAS.—If more than 1 metropolitan 

planning organization has authority within a metropolitan area 

or an area which is designated as a nonattainment area for 

ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 

7401 et seq.), each metropolitan planning organization shall 

consult with the other metropolitan planning organizations designated for such area and the State in the coordination of plans 

and TIPs required by this section. 

‘‘(2) TRANSPORTATION IMPROVEMENTS LOCATED IN MULTIPLE MPOS.—If a transportation improvement, funded under 

this chapter or title 23, is located within the boundaries of more 

than 1 metropolitan planning area, the metropolitan planning 

organizations shall coordinate plans and TIPs regarding the 

transportation improvement. 

‘‘(3) RELATIONSHIP WITH OTHER PLANNING OFFICIALS.— ‘‘(A) IN GENERAL.—The Secretary shall encourage each 

metropolitan planning organization to consult with officials 

responsible for other types of planning activities that are affected by transportation in the area (including State and 

local planned growth, economic development, environmental protection, airport operations, and freight movements) or to coordinate its planning process, to the maximum extent practicable, with such planning activities. 

‘‘(B) REQUIREMENTS.—Under the metropolitan planning process, transportation plans and TIPs shall be developed with due consideration of other related planning activities within the metropolitan area, and the process shall 

provide for the design and delivery of transportation services within the metropolitan area that are provided by— 

‘‘(i) recipients of assistance under this chapter; 

‘‘(ii) governmental agencies and nonprofit organizations (including representatives of the agencies and 


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organizations) that receive Federal assistance from a 

source other than the Department of Transportation to 

provide nonemergency transportation services; and 

‘‘(iii) recipients of assistance under section 204 of 

title 23. 

‘‘(h) SCOPE OF PLANNING PROCESS.— ‘‘(1) IN GENERAL.—The metropolitan planning process for a 

metropolitan planning area under this section shall provide for 

consideration of projects and strategies that will— 

‘‘(A) support the economic vitality of the metropolitan 

area, especially by enabling global competitiveness, productivity, and efficiency; 

‘‘(B) increase the safety of the transportation system for 

motorized and nonmotorized users; 

‘‘(C) increase the security of the transportation system 

for motorized and nonmotorized users; 

‘‘(D) increase the accessibility and mobility of people 

and for freight; 

‘‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote 

consistency between transportation improvements and State 

and local planned growth and economic development patterns; 

‘‘(F) enhance the integration and connectivity of the 

transportation system, across and between modes, for people and freight; 

‘‘(G) promote efficient system management and operation; and 

‘‘(H) emphasize the preservation of the existing transportation system. 

‘‘(2) PERFORMANCE-BASED APPROACH.— ‘‘(A) IN GENERAL.—The metropolitan transportation 

planning process shall provide for the establishment and 

use of a performance-based approach to transportation decisionmaking to support the national goals described in section 150(b) of title 23 and the general purposes described 

in section 5301. 

‘‘(B) PERFORMANCE TARGETS.— ‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TAR- GETS.— 

‘‘(I) IN GENERAL.—Each metropolitan planning 

organization shall establish performance targets 

that address the performance measures described 

in section 150(c) of title 23, where applicable, to 

use in tracking progress towards attainment of 

critical outcomes for the region of the metropolitan 

planning organization. 

‘‘(II) COORDINATION.—Selection of performance 

targets by a metropolitan planning organization 

shall be coordinated with the relevant State to ensure consistency, to the maximum extent practicable. 

‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TARGETS.—Selection of performance targets by a metropolitan planning organization shall be coordinated, to the 


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maximum extent practicable, with providers of public 

transportation to ensure consistency with sections 

5326(c) and 5329(d). 

‘‘(C) TIMING.—Each metropolitan planning organization shall establish the performance targets under subparagraph (B) not later than 180 days after the date on which 

the relevant State or provider of public transportation establishes the performance targets. 

‘‘(D) INTEGRATION OF OTHER PERFORMANCE-BASED

PLANS.—A metropolitan planning organization shall integrate in the metropolitan transportation planning process, 

directly or by reference, the goals, objectives, performance 

measures, and targets described in other State transportation plans and transportation processes, as well as any 

plans developed by recipients of assistance under this chapter, required as part of a performance-based program. 

‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to consider any factor specified in paragraphs (1) and (2) shall not be 

reviewable by any court under this chapter, title 23, subchapter 

II of chapter 5 of title 5, or chapter 7 of title 5 in any matter 

affecting a transportation plan, a TIP, a project or strategy, or 

the certification of a planning process. 

‘‘(i) DEVELOPMENT OF TRANSPORTATION PLAN.— ‘‘(1) REQUIREMENTS.— ‘‘(A) IN GENERAL.—Each metropolitan planning organization shall prepare and update a transportation plan for 

its metropolitan planning area in accordance with the requirements of this subsection. 

‘‘(B) FREQUENCY.— 

‘‘(i) IN GENERAL.—The metropolitan planning organization shall prepare and update such plan every 4 

years (or more frequently, if the metropolitan planning 

organization elects to update more frequently) in the 

case of each of the following: 

‘‘(I) Any area designated as nonattainment, as 

defined in section 107(d) of the Clean Air Act (42 

U.S.C. 7407(d)). 

‘‘(II) Any area that was nonattainment and 

subsequently designated to attainment in accordance with section 107(d)(3) of that Act (42 U.S.C. 

7407(d)(3)) and that is subject to a maintenance 

plan under section 175A of that Act (42 U.S.C. 

7505a). 

‘‘(ii) OTHER AREAS.—In the case of any other area 

required to have a transportation plan in accordance 

with the requirements of this subsection, the metropolitan planning organization shall prepare and update 

such plan every 5 years unless the metropolitan planning organization elects to update more frequently. 

‘‘(2) TRANSPORTATION PLAN.—A transportation plan under 

this section shall be in a form that the Secretary determines to 

be appropriate and shall contain, at a minimum, the following: 

‘‘(A) IDENTIFICATION OF TRANSPORTATION FACILITIES.— 

‘‘(i) IN GENERAL.—An identification of transportation facilities (including major roadways, transit, 


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multimodal and intermodal facilities, nonmotorized 

transportation facilities, and intermodal connectors) 

that should function as an integrated metropolitan 

transportation system, giving emphasis to those facilities that serve important national and regional transportation functions. 

‘‘(ii) FACTORS.—In formulating the transportation 

plan, the metropolitan planning organization shall 

consider factors described in subsection (h) as the factors relate to a 20-year forecast period. 

‘‘(B) PERFORMANCE MEASURES AND TARGETS.—A description of the performance measures and performance targets used in assessing the performance of the transportation 

system in accordance with subsection (h)(2). 

‘‘(C) SYSTEM PERFORMANCE REPORT.—A system performance report and subsequent updates evaluating the 

condition and performance of the transportation system 

with respect to the performance targets described in subsection (h)(2), including— 

‘‘(i) progress achieved by the metropolitan planning 

organization in meeting the performance targets in 

comparison with system performance recorded in previous reports; and 

‘‘(ii) for metropolitan planning organizations that 

voluntarily elect to develop multiple scenarios, an analysis of how the preferred scenario has improved the 

conditions and performance of the transportation system and how changes in local policies and investments 

have impacted the costs necessary to achieve the identified performance targets. 

‘‘(D) MITIGATION ACTIVITIES.— 

‘‘(i) IN GENERAL.—A long-range transportation 

plan shall include a discussion of types of potential environmental mitigation activities and potential areas to 

carry out these activities, including activities that may 

have the greatest potential to restore and maintain the 

environmental functions affected by the plan. 

‘‘(ii) CONSULTATION.—The discussion shall be developed in consultation with Federal, State, and tribal 

wildlife, land management, and regulatory agencies. 

‘‘(E) FINANCIAL PLAN.— 

‘‘(i) IN GENERAL.—A financial plan that— 

‘‘(I) demonstrates how the adopted transportation plan can be implemented; 

‘‘(II) indicates resources from public and private sources that are reasonably expected to be 

made available to carry out the plan; and 

‘‘(III) recommends any additional financing 

strategies for needed projects and programs. 

‘‘(ii) INCLUSIONS.—The financial plan may include, 

for illustrative purposes, additional projects that would 

be included in the adopted transportation plan if reasonable additional resources beyond those identified in 

the financial plan were available. 


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‘‘(iii) COOPERATIVE DEVELOPMENT.—For the purpose of developing the transportation plan, the metropolitan planning organization, transit operator, and 

State shall cooperatively develop estimates of funds 

that will be available to support plan implementation. 

‘‘(F) OPERATIONAL AND MANAGEMENT STRATEGIES.— Operational and management strategies to improve the performance of existing transportation facilities to relieve vehicular congestion and maximize the safety and mobility of 

people and goods. 

‘‘(G) CAPITAL INVESTMENT AND OTHER STRATEGIES.— Capital investment and other strategies to preserve the existing and projected future metropolitan transportation infrastructure and provide for multimodal capacity increases 

based on regional priorities and needs. 

‘‘(H) TRANSPORTATION AND TRANSIT ENHANCEMENT ACTIVITIES.—Proposed transportation and transit enhancement activities. 

‘‘(3) COORDINATION WITH CLEAN AIR ACT AGENCIES.—In 

metropolitan areas that are in nonattainment for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), 

the metropolitan planning organization shall coordinate the development of a transportation plan with the process for development of the transportation control measures of the State implementation plan required by that Act. 

‘‘(4) OPTIONAL SCENARIO DEVELOPMENT.— ‘‘(A) IN GENERAL.—A metropolitan planning organization may, while fitting the needs and complexity of its community, voluntarily elect to develop multiple scenarios for 

consideration as part of the development of the metropolitan transportation plan, in accordance with subparagraph 

(B). 

‘‘(B) RECOMMENDED COMPONENTS.—A metropolitan 

planning organization that chooses to develop multiple scenarios under subparagraph (A) shall be encouraged to consider— 

‘‘(i) potential regional investment strategies for the 

planning horizon; 

‘‘(ii) assumed distribution of population and employment; 

‘‘(iii) a scenario that, to the maximum extent practicable, maintains baseline conditions for the performance measures identified in subsection (h)(2); 

‘‘(iv) a scenario that improves the baseline conditions for as many of the performance measures identified in subsection (h)(2) as possible; 

‘‘(v) revenue constrained scenarios based on the 

total revenues expected to be available over the forecast 

period of the plan; and 

‘‘(vi) estimated costs and potential revenues available to support each scenario. 

‘‘(C) METRICS.—In addition to the performance measures identified in section 150(c) of title 23, metropolitan 

planning organizations may evaluate scenarios developed 

under this paragraph using locally-developed measures. 


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‘‘(5) CONSULTATION.— 

‘‘(A) IN GENERAL.—In each metropolitan area, the metropolitan planning organization shall consult, as appropriate, with State and local agencies responsible for land 

use management, natural resources, environmental protection, conservation, and historic preservation concerning the 

development of a long-range transportation plan. 

‘‘(B) ISSUES.—The consultation shall involve, as appropriate— 

‘‘(i) comparison of transportation plans with State 

conservation plans or maps, if available; or 

‘‘(ii) comparison of transportation plans to inventories of natural or historic resources, if available. 

‘‘(6) PARTICIPATION BY INTERESTED PARTIES.— 

‘‘(A) IN GENERAL.—Each metropolitan planning organization shall provide citizens, affected public agencies, representatives of public transportation employees, freight 

shippers, providers of freight transportation services, private providers of transportation, representatives of users of 

public transportation, representatives of users of pedestrian 

walkways and bicycle transportation facilities, representatives of the disabled, and other interested parties with a 

reasonable opportunity to comment on the transportation 

plan. 

‘‘(B) CONTENTS OF PARTICIPATION PLAN.—A participation plan— 

‘‘(i) shall be developed in consultation with all interested parties; and 

‘‘(ii) shall provide that all interested parties have 

reasonable opportunities to comment on the contents of 

the transportation plan. 

‘‘(C) METHODS.—In carrying out subparagraph (A), the 

metropolitan planning organization shall, to the maximum 

extent practicable— 

‘‘(i) hold any public meetings at convenient and accessible locations and times; 

‘‘(ii) employ visualization techniques to describe 

plans; and 

‘‘(iii) make public information available in electronically accessible format and means, such as the 

World Wide Web, as appropriate to afford reasonable 

opportunity for consideration of public information 

under subparagraph (A). 

‘‘(7) PUBLICATION.—A transportation plan involving Federal participation shall be published or otherwise made readily 

available by the metropolitan planning organization for public 

review, including (to the maximum extent practicable) in electronically accessible formats and means, such as the World 

Wide Web, approved by the metropolitan planning organization 

and submitted for information purposes to the Governor at such 

times and in such manner as the Secretary shall establish. 

‘‘(8) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 

Notwithstanding paragraph (2)(C), a State or metropolitan 

planning organization shall not be required to select any project 


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from the illustrative list of additional projects included in the 

financial plan under paragraph (2)(C). 

‘‘(j) METROPOLITAN TIP.— 

‘‘(1) DEVELOPMENT.— ‘‘(A) IN GENERAL.—In cooperation with the State and 

any affected public transportation operator, the metropolitan planning organization designated for a metropolitan 

area shall develop a TIP for the metropolitan planning 

area that— 

‘‘(i) contains projects consistent with the current 

metropolitan transportation plan; 

‘‘(ii) reflects the investment priorities established in 

the current metropolitan transportation plan; and 

‘‘(iii) once implemented, is designed to make 

progress toward achieving the performance targets established under subsection (h)(2). 

‘‘(B) OPPORTUNITY FOR COMMENT.—In developing the 

TIP, the metropolitan planning organization, in cooperation with the State and any affected public transportation 

operator, shall provide an opportunity for participation by 

interested parties in the development of the program, in accordance with subsection (i)(5). 

‘‘(C) FUNDING ESTIMATES.—For the purpose of developing the TIP, the metropolitan planning organization, 

public transportation agency, and State shall cooperatively 

develop estimates of funds that are reasonably expected to 

be available to support program implementation. 

‘‘(D) UPDATING AND APPROVAL.—The TIP shall be— 

‘‘(i) updated at least once every 4 years; and 

‘‘(ii) approved by the metropolitan planning organization and the Governor. 

‘‘(2) CONTENTS.— 

‘‘(A) PRIORITY LIST.—The TIP shall include a priority 

list of proposed Federally supported projects and strategies 

to be carried out within each 4-year period after the initial 

adoption of the TIP. 

‘‘(B) FINANCIAL PLAN.—The TIP shall include a financial plan that— 

‘‘(i) demonstrates how the TIP can be implemented; 

‘‘(ii) indicates resources from public and private 

sources that are reasonably expected to be available to 

carry out the program; 

‘‘(iii) identifies innovative financing techniques to 

finance projects, programs, and strategies; and 

‘‘(iv) may include, for illustrative purposes, additional projects that would be included in the approved 

TIP if reasonable additional resources beyond those 

identified in the financial plan were available. 

‘‘(C) DESCRIPTIONS.—Each project in the TIP shall include sufficient descriptive material (such as type of work, 

termini, length, and other similar factors) to identify the 

project or phase of the project. 

‘‘(D) PERFORMANCE TARGET ACHIEVEMENT.—The transportation improvement program shall include, to the maximum extent practicable, a description of the anticipated efVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00244 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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fect of the transportation improvement program toward 

achieving the performance targets established in the metropolitan transportation plan, linking investment priorities to 

those performance targets. 

‘‘(3) INCLUDED PROJECTS.— ‘‘(A) PROJECTS UNDER THIS CHAPTER AND TITLE 23.—A 

TIP developed under this subsection for a metropolitan 

area shall include the projects within the area that are proposed for funding under this chapter and chapter 1 of title 

23. 

‘‘(B) PROJECTS UNDER CHAPTER 2 OF TITLE 23.— ‘‘(i) REGIONALLY SIGNIFICANT PROJECTS.—Regionally significant projects proposed for funding under 

chapter 2 of title 23 shall be identified individually in 

the transportation improvement program. 

‘‘(ii) OTHER PROJECTS.—Projects proposed for funding under chapter 2 of title 23 that are not determined 

to be regionally significant shall be grouped in 1 line 

item or identified individually in the transportation 

improvement program. 

‘‘(C) CONSISTENCY WITH LONG-RANGE TRANSPORTATION

PLAN.—Each project shall be consistent with the long-range 

transportation plan developed under subsection (i) for the 

area. 

‘‘(D) REQUIREMENT OF ANTICIPATED FULL FUNDING.— The program shall include a project, or an identified phase 

of a project, only if full funding can reasonably be anticipated to be available for the project or the identified phase 

within the time period contemplated for completion of the 

project or the identified phase. 

‘‘(4) NOTICE AND COMMENT.—Before approving a TIP, a 

metropolitan planning organization, in cooperation with the 

State and any affected public transportation operator, shall 

provide an opportunity for participation by interested parties in 

the development of the program, in accordance with subsection 

(i)(5). 

‘‘(5) SELECTION OF PROJECTS.— ‘‘(A) IN GENERAL.—Except as otherwise provided in 

subsection (k)(4) and in addition to the TIP development required under paragraph (1), the selection of Federally funded projects in metropolitan areas shall be carried out, from 

the approved TIP— 

‘‘(i) by— 

‘‘(I) in the case of projects under title 23, the 

State; and 

‘‘(II) in the case of projects under this chapter, 

the designated recipients of public transportation 

funding; and 

‘‘(ii) in cooperation with the metropolitan planning 

organization. 

‘‘(B) MODIFICATIONS TO PROJECT PRIORITY.—Notwithstanding any other provision of law, action by the Secretary 

shall not be required to advance a project included in the 

approved TIP in place of another project in the program. 

‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.— 


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‘‘(A) NO REQUIRED SELECTION.—Notwithstanding paragraph (2)(B)(iv), a State or metropolitan planning organization shall not be required to select any project from the 

illustrative list of additional projects included in the financial plan under paragraph (2)(B)(iv). 

‘‘(B) REQUIRED ACTION BY THE SECRETARY.—Action by 

the Secretary shall be required for a State or metropolitan 

planning organization to select any project from the illustrative list of additional projects included in the financial 

plan under paragraph (2)(B)(iv) for inclusion in an approved TIP. 

‘‘(7) PUBLICATION.— 

‘‘(A) PUBLICATION OF TIPS.—A TIP involving Federal 

participation shall be published or otherwise made readily 

available by the metropolitan planning organization for 

public review. 

‘‘(B) PUBLICATION OF ANNUAL LISTINGS OF PROJECTS.— 

‘‘(i) IN GENERAL.—An annual listing of projects, including investments in pedestrian walkways and bicycle transportation facilities, for which Federal funds 

have been obligated in the preceding year shall be published or otherwise made available by the cooperative 

effort of the State, transit operator, and metropolitan 

planning organization for public review. 

‘‘(ii) REQUIREMENT.—The listing shall be consistent 

with the categories identified in the TIP. 

‘‘(k) TRANSPORTATION MANAGEMENT AREAS.— 

‘‘(1) IDENTIFICATION AND DESIGNATION.— 

‘‘(A) REQUIRED IDENTIFICATION.—The Secretary shall 

identify as a transportation management area each urbanized area (as defined by the Bureau of the Census) with a 

population of over 200,000 individuals. 

‘‘(B) DESIGNATIONS ON REQUEST.—The Secretary shall 

designate any additional area as a transportation management area on the request of the Governor and the metropolitan planning organization designated for the area. 

‘‘(2) TRANSPORTATION PLANS.—In a transportation management area, transportation plans shall be based on a continuing 

and comprehensive transportation planning process carried out 

by the metropolitan planning organization in cooperation with 

the State and public transportation operators. 

‘‘(3) CONGESTION MANAGEMENT PROCESS.— 

‘‘(A) IN GENERAL.—Within a metropolitan planning 

area serving a transportation management area, the transportation planning process under this section shall address 

congestion management through a process that provides for 

effective management and operation, based on a cooperatively developed and implemented metropolitan-wide strategy, of new and existing transportation facilities eligible for 

funding under this chapter and title 23 through the use of 

travel demand reduction and operational management 

strategies. 

‘‘(B) SCHEDULE.—The Secretary shall establish an appropriate phase-in schedule for compliance with the reVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00246 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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quirements of this section but no sooner than 1 year after 

the identification of a transportation management area. 

‘‘(4) SELECTION OF PROJECTS.— ‘‘(A) IN GENERAL.—All Federally funded projects carried out within the boundaries of a metropolitan planning 

area serving a transportation management area under title 

23 (excluding projects carried out on the National Highway 

System) or under this chapter shall be selected for implementation from the approved TIP by the metropolitan planning organization designated for the area in consultation 

with the State and any affected public transportation operator. 

‘‘(B) NATIONAL HIGHWAY SYSTEM PROJECTS.—Projects 

carried out within the boundaries of a metropolitan planning area serving a transportation management area on 

the National Highway System shall be selected for implementation from the approved TIP by the State in cooperation with the metropolitan planning organization designated for the area. 

‘‘(5) CERTIFICATION.— 

‘‘(A) IN GENERAL.—The Secretary shall— 

‘‘(i) ensure that the metropolitan planning process 

of a metropolitan planning organization serving a 

transportation management area is being carried out 

in accordance with applicable provisions of Federal 

law; and 

‘‘(ii) subject to subparagraph (B), certify, not less 

often than once every 4 years, that the requirements of 

this paragraph are met with respect to the metropolitan planning process. 

‘‘(B) REQUIREMENTS FOR CERTIFICATION.—The Secretary may make the certification under subparagraph (A) 

if— 

‘‘(i) the transportation planning process complies 

with the requirements of this section and other applicable requirements of Federal law; and 

‘‘(ii) there is a TIP for the metropolitan planning 

area that has been approved by the metropolitan planning organization and the Governor. 

‘‘(C) EFFECT OF FAILURE TO CERTIFY.— 

‘‘(i) WITHHOLDING OF PROJECT FUNDS.—If a metropolitan planning process of a metropolitan planning 

organization serving a transportation management 

area is not certified, the Secretary may withhold up to 

20 percent of the funds attributable to the metropolitan 

planning area of the metropolitan planning organization for projects funded under this chapter and title 23. 

‘‘(ii) RESTORATION OF WITHHELD FUNDS.—The 

withheld funds shall be restored to the metropolitan 

planning area at such time as the metropolitan planning process is certified by the Secretary. 

‘‘(D) REVIEW OF CERTIFICATION.—In making certification determinations under this paragraph, the Secretary 

shall provide for public involvement appropriate to the metropolitan area under review. 


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‘‘(l) REPORT ON PERFORMANCE-BASED PLANNING PROCESSES.— ‘‘(1) IN GENERAL.—The Secretary shall submit to Congress 

a report on the effectiveness of the performance-based planning 

processes of metropolitan planning organizations under this 

section, taking into consideration the requirements of this subsection 

‘‘(2) REPORT.—Not later than 5 years after the date of enactment of the Federal Public Transportation Act of 2012, the 

Secretary shall submit to Congress a report evaluating— 

‘‘(A) the overall effectiveness of performance-based 

planning as a tool for guiding transportation investments; 

‘‘(B) the effectiveness of the performance-based planning process of each metropolitan planning organization 

under this section; 

‘‘(C) the extent to which metropolitan planning organizations have achieved, or are currently making substantial 

progress toward achieving, the performance targets specified under this section and whether metropolitan planning 

organizations are developing meaningful performance targets; and 

‘‘(D) the technical capacity of metropolitan planning organizations that operate within a metropolitan planning 

area of less than 200,000 and their ability to carry out the 

requirements of this section. 

‘‘(3) PUBLICATION.—The report under paragraph (2) shall 

be published or otherwise made available in electronically accessible formats and means, including on the Internet. 

‘‘(m) ABBREVIATED PLANS FOR CERTAIN AREAS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), in the case of 

a metropolitan area not designated as a transportation management area under this section, the Secretary may provide for the 

development of an abbreviated transportation plan and TIP for 

the metropolitan planning area that the Secretary determines is 

appropriate to achieve the purposes of this section, taking into 

account the complexity of transportation problems in the area. 

‘‘(2) NONATTAINMENT AREAS.—The Secretary may not permit abbreviated plans or TIPs for a metropolitan area that is 

in nonattainment for ozone or carbon monoxide under the Clean 

Air Act (42 U.S.C. 7401 et seq.). 

‘‘(n) ADDITIONAL REQUIREMENTS FOR CERTAIN NONATTAINMENT

AREAS.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provisions of 

this chapter or title 23, for transportation management areas 

classified as nonattainment for ozone or carbon monoxide pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 

funds may not be advanced in such area for any highway 

project that will result in a significant increase in the carrying 

capacity for single-occupant vehicles unless the project is addressed through a congestion management process. 

‘‘(2) APPLICABILITY.—This subsection applies to a nonattainment area within the metropolitan planning area boundaries determined under subsection (e). 

‘‘(o) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in 

this section shall be construed to confer on a metropolitan planning 

organization the authority to impose legal requirements on any 


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transportation facility, provider, or project not eligible under this 

chapter or title 23. 

‘‘(p) FUNDING.—Funds set aside under section 104(f) of title 23 

or section 5305(g) shall be available to carry out this section. 

‘‘(q) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since 

plans and TIPs described in this section are subject to a reasonable 

opportunity for public comment, since individual projects included 

in plans and TIPs are subject to review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since decisions by the Secretary concerning plans and TIPs described in this 

section have not been reviewed under that Act as of January 1, 

1997, any decision by the Secretary concerning a plan or TIP described in this section shall not be considered to be a Federal action 

subject to review under that Act.’’. 

(b) PILOT PROGRAM FOR TRANSIT-ORIENTED DEVELOPMENT

PLANNING.— 

(1) DEFINITIONS.—In this subsection the following definitions shall apply: 

(A) ELIGIBLE PROJECT.—The term ‘‘eligible project’’ 

means a new fixed guideway capital project or a core capacity improvement project, as those terms are defined in 

section 5309 of title 49, United States Code, as amended by 

this division. 

(B) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Transportation. 

(2) GENERAL AUTHORITY.—The Secretary may make grants 

under this subsection to a State or local governmental authority 

to assist in financing comprehensive planning associated with 

an eligible project that seeks to— 

(A) enhance economic development, ridership, and 

other goals established during the project development and 

engineering processes; 

(B) facilitate multimodal connectivity and accessibility; 

(C) increase access to transit hubs for pedestrian and 

bicycle traffic; 

(D) enable mixed-use development; 

(E) identify infrastructure needs associated with the eligible project; and 

(F) include private sector participation. 

(3) ELIGIBILITY.—A State or local governmental authority 

that desires to participate in the program under this subsection 

shall submit to the Secretary an application that contains, at 

a minimum— 

(A) identification of an eligible project; 

(B) a schedule and process for the development of a 

comprehensive plan; 

(C) a description of how the eligible project and the 

proposed comprehensive plan advance the metropolitan 

transportation plan of the metropolitan planning organization; 

(D) proposed performance criteria for the development 

and implementation of the comprehensive plan; and 

(E) identification of— 

(i) partners; 

(ii) availability of and authority for funding; and 


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(iii) potential State, local or other impediments to 

the implementation of the comprehensive plan. 

SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION 

PLANNING. 

Section 5304 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5304. Statewide and nonmetropolitan transportation planning 

‘‘(a) GENERAL REQUIREMENTS.— 

‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.—Subject to 

section 5303, to accomplish the objectives stated in section 

5303(a), each State shall develop a statewide transportation 

plan and a statewide transportation improvement program for 

all areas of the State. 

‘‘(2) CONTENTS.—The statewide transportation plan and the 

transportation improvement program developed for each State 

shall provide for the development and integrated management 

and operation of transportation systems and facilities (including accessible pedestrian walkways and bicycle transportation 

facilities) that will function as an intermodal transportation 

system for the State and an integral part of an intermodal 

transportation system for the United States. 

‘‘(3) PROCESS OF DEVELOPMENT.—The process for developing the statewide plan and the transportation improvement 

program shall provide for consideration of all modes of transportation and the policies stated in section 5303(a) and shall be 

continuing, cooperative, and comprehensive to the degree appropriate, based on the complexity of the transportation problems 

to be addressed. 

‘‘(b) COORDINATION WITH METROPOLITAN PLANNING; STATE IMPLEMENTATION PLAN.—A State shall— 

‘‘(1) coordinate planning carried out under this section with 

the transportation planning activities carried out under section 

5303 for metropolitan areas of the State and with statewide 

trade and economic development planning activities and related 

multistate planning efforts; and 

‘‘(2) develop the transportation portion of the State implementation plan as required by the Clean Air Act (42 U.S.C. 

7401 et seq.). 

‘‘(c) INTERSTATE AGREEMENTS.— 

‘‘(1) IN GENERAL.—Two or more States may enter into 

agreements or compacts, not in conflict with any law of the 

United States, for cooperative efforts and mutual assistance in 

support of activities authorized under this section related to 

interstate areas and localities in the States and establishing authorities the States consider desirable for making the agreements and compacts effective. 

‘‘(2) RESERVATION OF RIGHTS.—The right to alter, amend, 

or repeal interstate compacts entered into under this subsection 

is expressly reserved. 

‘‘(d) SCOPE OF PLANNING PROCESS.— 

‘‘(1) IN GENERAL.—Each State shall carry out a statewide 

transportation planning process that provides for consideration 


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and implementation of projects, strategies, and services that 

will— 

‘‘(A) support the economic vitality of the United States, 

the States, nonmetropolitan areas, and metropolitan areas, 

especially by enabling global competitiveness, productivity, 

and efficiency; 

‘‘(B) increase the safety of the transportation system for 

motorized and nonmotorized users; 

‘‘(C) increase the security of the transportation system 

for motorized and nonmotorized users; 

‘‘(D) increase the accessibility and mobility of people 

and freight; 

‘‘(E) protect and enhance the environment, promote energy conservation, improve the quality of life, and promote 

consistency between transportation improvements and State 

and local planned growth and economic development patterns; 

‘‘(F) enhance the integration and connectivity of the 

transportation system, across and between modes throughout the State, for people and freight; 

‘‘(G) promote efficient system management and operation; and 

‘‘(H) emphasize the preservation of the existing transportation system. 

‘‘(2) PERFORMANCE-BASED APPROACH.— 

‘‘(A) IN GENERAL.—The statewide transportation planning process shall provide for the establishment and use of 

a performance-based approach to transportation decisionmaking to support the national goals described in section 

150(b) of title 23 and the general purposes described in section 5301. 

‘‘(B) PERFORMANCE TARGETS.— 

‘‘(i) SURFACE TRANSPORTATION PERFORMANCE TARGETS.— 

‘‘(I) IN GENERAL.—Each State shall establish 

performance targets that address the performance 

measures described in section 150(c) of title 23, 

where applicable, to use in tracking progress towards attainment of critical outcomes for the 

State. 

‘‘(II) COORDINATION.—Selection of performance 

targets by a State shall be coordinated with the 

relevant metropolitan planning organizations to 

ensure consistency, to the maximum extent practicable. 

‘‘(ii) PUBLIC TRANSPORTATION PERFORMANCE TARGETS.—In urbanized areas with a population of fewer 

than 200,000 individuals, as calculated according to 

the most recent decennial census, and not represented 

by a metropolitan planning organization, selection of 

performance targets by a State shall be coordinated, to 

the maximum extent practicable, with providers of public transportation to ensure consistency with sections 

5326(c) and 5329(d). 


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‘‘(C) INTEGRATION OF OTHER PERFORMANCE-BASED

PLANS.—A State shall integrate into the statewide transportation planning process, directly or by reference, the goals, 

objectives, performance measures, and targets described in 

this paragraph, in other State transportation plans and 

transportation processes, as well as any plans developed 

pursuant to title 23 by providers of public transportation in 

urbanized areas with a population of fewer than 200,000 

individuals, as calculated according to the most recent decennial census, and not represented by a metropolitan planning organization, required as part of a performance-based 

program. 

‘‘(D) USE OF PERFORMANCE MEASURES AND TARGETS.— 

The performance measures and targets established under 

this paragraph shall be considered by a State when developing policies, programs, and investment priorities reflected 

in the statewide transportation plan and statewide transportation improvement program. 

‘‘(3) FAILURE TO CONSIDER FACTORS.—The failure to take 

into consideration the factors specified in paragraphs (1) and 

(2) shall not be subject to review by any court under this chapter, title 23, subchapter II of chapter 5 of title 5, or chapter 7 

of title 5 in any matter affecting a statewide transportation 

plan, a statewide transportation improvement program, a 

project or strategy, or the certification of a planning process. 

‘‘(e) ADDITIONAL REQUIREMENTS.—‘‘In carrying out planning 

under this section, each State shall, at a minimum— 

‘‘(1) with respect to nonmetropolitan areas, cooperate with 

affected local officials with responsibility for transportation or, 

if applicable, through regional transportation planning organizations described in subsection (l); 

‘‘(2) consider the concerns of Indian tribal governments and 

Federal land management agencies that have jurisdiction over 

land within the boundaries of the State; and 

‘‘(3) consider coordination of transportation plans, the 

transportation improvement program, and planning activities 

with related planning activities being carried out outside of 

metropolitan planning areas and between States. 

‘‘(f) LONG-RANGE STATEWIDE TRANSPORTATION PLAN.— ‘‘(1) DEVELOPMENT.—Each State shall develop a long-range 

statewide transportation plan, with a minimum 20-year forecast period for all areas of the State, that provides for the development and implementation of the intermodal transportation 

system of the State. 

‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

‘‘(A) METROPOLITAN AREAS.—The statewide transportation plan shall be developed for each metropolitan area 

in the State in cooperation with the metropolitan planning 

organization designated for the metropolitan area under 

section 5303. 

‘‘(B) NONMETROPOLITAN AREAS.— ‘‘(i) IN GENERAL.—With respect to nonmetropolitan 

areas, the statewide transportation plan shall be developed in cooperation with affected nonmetropolitan officials with responsibility for transportation or, if appliVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00252 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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cable, through regional transportation planning organizations described in subsection (l). 

‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 

review or approve the consultation process in each 

State. 

‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 

of the State under the jurisdiction of an Indian tribal government, the statewide transportation plan shall be developed in consultation with the tribal government and the 

Secretary of the Interior. 

‘‘(D) CONSULTATION, COMPARISON, AND CONSIDERATION.— 

‘‘(i) IN GENERAL.—The long-range transportation 

plan shall be developed, as appropriate, in consultation 

with State, tribal, and local agencies responsible for 

land use management, natural resources, environmental protection, conservation, and historic preservation. 

‘‘(ii) COMPARISON AND CONSIDERATION.—Consultation under clause (i) shall involve comparison of transportation plans to State and tribal conservation plans 

or maps, if available, and comparison of transportation 

plans to inventories of natural or historic resources, if 

available. 

‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 

‘‘(A) IN GENERAL.—In developing the statewide transportation plan, the State shall provide to— 

‘‘(i) nonmetropolitan local elected officials, or, if 

applicable, through regional transportation planning 

organizations described in subsection (l), an opportunity to participate in accordance with subparagraph 

(B)(i); and 

‘‘(ii) citizens, affected public agencies, representatives of public transportation employees, freight shippers, private providers of transportation, representatives of users of public transportation, representatives 

of users of pedestrian walkways and bicycle transportation facilities, representatives of the disabled, providers of freight transportation services, and other interested parties a reasonable opportunity to comment 

on the proposed plan. 

‘‘(B) METHODS.—In carrying out subparagraph (A), the 

State shall, to the maximum extent practicable— 

‘‘(i) develop and document a consultative process to 

carry out subparagraph (A)(i) that is separate and discrete from the public involvement process developed 

under clause (ii); 

‘‘(ii) hold any public meetings at convenient and 

accessible locations and times; 

‘‘(iii) employ visualization techniques to describe 

plans; and 

‘‘(iv) make public information available in electronically accessible format and means, such as the 

World Wide Web, as appropriate to afford reasonable 


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opportunity for consideration of public information 

under subparagraph (A). 

‘‘(4) MITIGATION ACTIVITIES.— ‘‘(A) IN GENERAL.—A long-range transportation plan 

shall include a discussion of potential environmental mitigation activities and potential areas to carry out these activities, including activities that may have the greatest potential to restore and maintain the environmental functions 

affected by the plan. 

‘‘(B) CONSULTATION.—The discussion shall be developed in consultation with Federal, State, and tribal wildlife, land management, and regulatory agencies. 

‘‘(5) FINANCIAL PLAN.—The statewide transportation plan 

may include— 

‘‘(A) a financial plan that— 

‘‘(i) demonstrates how the adopted statewide transportation plan can be implemented; 

‘‘(ii) indicates resources from public and private 

sources that are reasonably expected to be made available to carry out the plan; and 

‘‘(iii) recommends any additional financing strategies for needed projects and programs; and 

‘‘(B) for illustrative purposes, additional projects that 

would be included in the adopted statewide transportation 

plan if reasonable additional resources beyond those identified in the financial plan were available. 

‘‘(6) SELECTION OF PROJECTS FROM ILLUSTRATIVE LIST.—A 

State shall not be required to select any project from the illustrative list of additional projects included in the financial plan 

described in paragraph (5). 

‘‘(7) PERFORMANCE-BASED APPROACH.—The statewide transportation plan should include— 

‘‘(A) a description of the performance measures and 

performance targets used in assessing the performance of 

the transportation system in accordance with subsection 

(d)(2); and 

‘‘(B) a system performance report and subsequent updates evaluating the condition and performance of the 

transportation system with respect to the performance targets described in subsection (d)(2), including progress 

achieved by the metropolitan planning organization in 

meeting the performance targets in comparison with system 

performance recorded in previous reports; 

‘‘(8) EXISTING SYSTEM.—The statewide transportation plan 

should include capital, operations and management strategies, 

investments, procedures, and other measures to ensure the preservation and most efficient use of the existing transportation 

system. 

‘‘(9) PUBLICATION OF LONG-RANGE TRANSPORTATION

PLANS.—Each long-range transportation plan prepared by a 

State shall be published or otherwise made available, including 

(to the maximum extent practicable) in electronically accessible 

formats and means, such as the World Wide Web. 

‘‘(g) STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM.— 

‘‘(1) DEVELOPMENT.— 


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‘‘(A) IN GENERAL.—Each State shall develop a statewide transportation improvement program for all areas of 

the State. 

‘‘(B) DURATION AND UPDATING OF PROGRAM.—Each program developed under subparagraph (A) shall cover a period of 4 years and shall be updated every 4 years or more 

frequently if the Governor of the State elects to update more 

frequently. 

‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

‘‘(A) METROPOLITAN AREAS.—With respect to each metropolitan area in the State, the program shall be developed 

in cooperation with the metropolitan planning organization 

designated for the metropolitan area under section 5303. 

‘‘(B) NONMETROPOLITAN AREAS.— 

‘‘(i) IN GENERAL.—With respect to each nonmetropolitan area in the State, the program shall be developed in cooperation with affected nonmetropolitan local 

officials with responsibility for transportation or, if applicable, through regional transportation planning organizations described in subsection (l). 

‘‘(ii) ROLE OF SECRETARY.—The Secretary shall not 

review or approve the specific consultation process in 

the State. 

‘‘(C) INDIAN TRIBAL AREAS.—With respect to each area 

of the State under the jurisdiction of an Indian tribal government, the program shall be developed in consultation 

with the tribal government and the Secretary of the Interior. 

‘‘(3) PARTICIPATION BY INTERESTED PARTIES.—In developing 

the program, the State shall provide citizens, affected public 

agencies, representatives of public transportation employees, 

freight shippers, private providers of transportation, providers 

of freight transportation services, representatives of users of 

public transportation, representatives of users of pedestrian 

walkways and bicycle transportation facilities, representatives 

of the disabled, and other interested parties with a reasonable 

opportunity to comment on the proposed program. 

‘‘(4) PERFORMANCE TARGET ACHIEVEMENT.—A statewide 

transportation improvement program shall include, to the maximum extent practicable, a discussion of the anticipated effect 

of the statewide transportation improvement program toward 

achieving the performance targets established in the statewide 

transportation plan, linking investment priorities to those performance targets. 

‘‘(5) INCLUDED PROJECTS.— 

‘‘(A) IN GENERAL.—A transportation improvement program developed under this subsection for a State shall include Federally supported surface transportation expenditures within the boundaries of the State. 

‘‘(B) LISTING OF PROJECTS.— 

‘‘(i) IN GENERAL.—An annual listing of projects for 

which funds have been obligated for the preceding year 

in each metropolitan planning area shall be published 

or otherwise made available by the cooperative effort of 


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the State, transit operator, and the metropolitan planning organization for public review. 

‘‘(ii) FUNDING CATEGORIES.—The listing described 

in clause (i) shall be consistent with the funding categories identified in each metropolitan transportation 

improvement program. 

‘‘(C) PROJECTS UNDER CHAPTER 2.— 

‘‘(i) REGIONALLY SIGNIFICANT PROJECTS.—Regionally significant projects proposed for funding under 

chapter 2 of title 23 shall be identified individually in 

the transportation improvement program. 

‘‘(ii) OTHER PROJECTS.—Projects proposed for funding under chapter 2 of title 23 that are not determined 

to be regionally significant shall be grouped in 1 line 

item or identified individually in the transportation 

improvement program. 

‘‘(D) CONSISTENCY WITH STATEWIDE TRANSPORTATION

PLAN.—Each project shall be— 

‘‘(i) consistent with the statewide transportation 

plan developed under this section for the State; 

‘‘(ii) identical to the project or phase of the project 

as described in an approved metropolitan transportation plan; and 

‘‘(iii) in conformance with the applicable State air 

quality implementation plan developed under the 

Clean Air Act (42 U.S.C. 7401 et seq.), if the project is 

carried out in an area designated as a nonattainment 

area for ozone, particulate matter, or carbon monoxide 

under part D of title I of that Act (42 U.S.C. 7501 et 

seq.). 

‘‘(E) REQUIREMENT OF ANTICIPATED FULL FUNDING.— 

The transportation improvement program shall include a 

project, or an identified phase of a project, only if full funding can reasonably be anticipated to be available for the 

project within the time period contemplated for completion 

of the project. 

‘‘(F) FINANCIAL PLAN.— 

‘‘(i) IN GENERAL.—The transportation improvement 

program may include a financial plan that demonstrates how the approved transportation improvement program can be implemented, indicates resources 

from public and private sources that are reasonably expected to be made available to carry out the transportation improvement program, and recommends any additional financing strategies for needed projects and 

programs. 

‘‘(ii) ADDITIONAL PROJECTS.—The financial plan 

may include, for illustrative purposes, additional 

projects that would be included in the adopted transportation plan if reasonable additional resources beyond those identified in the financial plan were available. 

‘‘(G) SELECTION OF PROJECTS FROM ILLUSTRATIVE

LIST.— 


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‘‘(i) NO REQUIRED SELECTION.—Notwithstanding 

subparagraph (F), a State shall not be required to select any project from the illustrative list of additional 

projects included in the financial plan under subparagraph (F). 

‘‘(ii) REQUIRED ACTION BY THE SECRETARY.—Action 

by the Secretary shall be required for a State to select 

any project from the illustrative list of additional 

projects included in the financial plan under subparagraph (F) for inclusion in an approved transportation 

improvement program. 

‘‘(H) PRIORITIES.—The transportation improvement 

program shall reflect the priorities for programming and 

expenditures of funds, including transportation enhancement activities, required by this chapter and title 23. 

‘‘(6) PROJECT SELECTION FOR AREAS OF LESS THAN 50,000

POPULATION.— 

‘‘(A) IN GENERAL.—Projects carried out in areas with 

populations of less than 50,000 individuals shall be selected, from the approved transportation improvement program (excluding projects carried out on the National Highway System and projects carried out under the bridge program or the Interstate maintenance program under title 23 

or under sections 5310 and 5311 of this chapter), by the 

State in cooperation with the affected nonmetropolitan local 

officials with responsibility for transportation or, if applicable, through regional transportation planning organizations described in subsection (l). 

‘‘(B) OTHER PROJECTS.—Projects carried out in areas 

with populations of less than 50,000 individuals on the National Highway System or under the bridge program or the 

Interstate maintenance program under title 23 or under 

sections 5310 and 5311 of this chapter shall be selected, 

from the approved statewide transportation improvement 

program, by the State in consultation with the affected nonmetropolitan local officials with responsibility for transportation. 

‘‘(7) TRANSPORTATION IMPROVEMENT PROGRAM APPROVAL.— 

Every 4 years, a transportation improvement program developed under this subsection shall be reviewed and approved by 

the Secretary if based on a current planning finding. 

‘‘(8) PLANNING FINDING.—A finding shall be made by the 

Secretary at least every 4 years that the transportation planning process through which statewide transportation plans and 

programs are developed is consistent with this section and section 5303. 

‘‘(9) MODIFICATIONS TO PROJECT PRIORITY.—Notwithstanding any other provision of law, action by the Secretary 

shall not be required to advance a project included in the approved transportation improvement program in place of another 

project in the program. 

‘‘(h) PERFORMANCE-BASED PLANNING PROCESSES EVALUATION.— 


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‘‘(1) IN GENERAL.—The Secretary shall establish criteria to 

evaluate the effectiveness of the performance-based planning 

processes of States, taking into consideration the following: 

‘‘(A) The extent to which the State is making progress 

toward achieving, the performance targets described in subsection (d)(2), taking into account whether the State developed appropriate performance targets. 

‘‘(B) The extent to which the State has made transportation investments that are efficient and cost-effective. 

‘‘(C) The extent to which the State— 

‘‘(i) has developed an investment process that relies 

on public input and awareness to ensure that investments are transparent and accountable; and 

‘‘(ii) provides reports allowing the public to access 

the information being collected in a format that allows 

the public to meaningfully assess the performance of 

the State. 

‘‘(2) REPORT.— 

‘‘(A) IN GENERAL.—Not later than 5 years after the date 

of enactment of the Federal Public Transportation Act of 

2012, the Secretary shall submit to Congress a report evaluating— 

‘‘(i) the overall effectiveness of performance-based 

planning as a tool for guiding transportation investments; and 

‘‘(ii) the effectiveness of the performance-based 

planning process of each State. 

‘‘(B) PUBLICATION.—The report under subparagraph 

(A) shall be published or otherwise made available in electronically accessible formats and means, including on the 

Internet. 

‘‘(i) TREATMENT OF CERTAIN STATE LAWS AS CONGESTION MANAGEMENT PROCESSES.—For purposes of this section and section 

5303, and sections 134 and 135 of title 23, State laws, rules, or regulations pertaining to congestion management systems or programs 

may constitute the congestion management process under this this 

section and section 5303, and sections 134 and 135 of title 23, if the 

Secretary finds that the State laws, rules, or regulations are consistent with, and fulfill the intent of, the purposes of this section 

and section 5303, and sections 134 and 135 of title 23, as appropriate. 

‘‘(j) CONTINUATION OF CURRENT REVIEW PRACTICE.—Since the 

statewide transportation plan and the transportation improvement 

program described in this section are subject to a reasonable opportunity for public comment, since individual projects included in the 

statewide transportation plans and the transportation improvement 

program are subject to review under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321 et seq.), and since decisions by 

the Secretary concerning statewide transportation plans or the 

transportation improvement program described in this section have 

not been reviewed under that Act as of January 1, 1997, any decision by the Secretary concerning a metropolitan or statewide transportation plan or the transportation improvement program described in this section shall not be considered to be a Federal action 


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subject to review under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.). 

‘‘(k) SCHEDULE FOR IMPLEMENTATION.—The Secretary shall 

issue guidance on a schedule for implementation of the changes 

made by this section, taking into consideration the established planning update cycle for States. The Secretary shall not require a State 

to deviate from its established planning update cycle to implement 

changes made by this section. States shall reflect changes made to 

their transportation plan or transportation improvement program 

updates not later than 2 years after the date of issuance of guidance 

by the Secretary under this subsection. 

‘‘(l) DESIGNATION OF REGIONAL TRANSPORTATION PLANNING ORGANIZATIONS.— 

‘‘(1) IN GENERAL.—To carry out the transportation planning 

process required by this section, a State may establish and designate regional transportation planning organizations to enhance the planning, coordination, and implementation of statewide strategic long-range transportation plans and transportation improvement programs, with an emphasis on addressing 

the needs of nonmetropolitan areas of the State. 

‘‘(2) STRUCTURE.—A regional transportation planning organization shall be established as a multijurisdictional organization of nonmetropolitan local officials or their designees who 

volunteer for such organization and representatives of local 

transportation systems who volunteer for such organization. 

‘‘(3) REQUIREMENTS.—A regional transportation planning 

organization shall establish, at a minimum— 

‘‘(A) a policy committee, the majority of which shall 

consist of nonmetropolitan local officials, or their designees, 

and, as appropriate, additional representatives from the 

State, private business, transportation service providers, 

economic development practitioners, and the public in the 

region; and 

‘‘(B) a fiscal and administrative agent, such as an existing regional planning and development organization, to 

provide professional planning, management, and administrative support. 

‘‘(4) DUTIES.—The duties of a regional transportation planning organization shall include— 

‘‘(A) developing and maintaining, in cooperation with 

the State, regional long-range multimodal transportation 

plans; 

‘‘(B) developing a regional transportation improvement 

program for consideration by the State; 

‘‘(C) fostering the coordination of local planning, land 

use, and economic development plans with State, regional, 

and local transportation plans and programs; 

‘‘(D) providing technical assistance to local officials; 

‘‘(E) participating in national, multistate, and State 

policy and planning development processes to ensure the regional and local input of nonmetropolitan areas; 

‘‘(F) providing a forum for public participation in the 

statewide and regional transportation planning processes; 

‘‘(G) considering and sharing plans and programs with 

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tions, metropolitan planning organizations, and, where appropriate, tribal organizations; and 

‘‘(H) conducting other duties, as necessary, to support 

and enhance the statewide planning process under subsection (d). 

‘‘(5) STATES WITHOUT REGIONAL TRANSPORTATION PLANNING

ORGANIZATIONS.—If a State chooses not to establish or designate a regional transportation planning organization, the 

State shall consult with affected nonmetropolitan local officials 

to determine projects that may be of regional significance.’’. 

SEC. 20007. URBANIZED AREA FORMULA GRANTS. 

Section 5307 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5307. Urbanized area formula grants 

‘‘(a) GENERAL AUTHORITY.— 

‘‘(1) GRANTS.—The Secretary may make grants under this 

section for— 

‘‘(A) capital projects; 

‘‘(B) planning; 

‘‘(C) job access and reverse commute projects; and 

‘‘(D) operating costs of equipment and facilities for use 

in public transportation in an urbanized area with a population of fewer than 200,000 individuals, as determined by 

the Bureau of the Census. 

‘‘(2) SPECIAL RULE.—The Secretary may make grants under 

this section to finance the operating cost of equipment and facilities for use in public transportation, excluding rail fixed 

guideway, in an urbanized area with a population of not fewer 

than 200,000 individuals, as determined by the Bureau of the 

Census— 

‘‘(A) for public transportation systems that operate 75 

or fewer buses in fixed route service during peak service 

hours, in an amount not to exceed 75 percent of the share 

of the apportionment which is attributable to such systems 

within the urbanized area, as measured by vehicle revenue 

hours; and 

‘‘(B) for public transportation systems that operate a 

minimum of 76 buses and a maximum of 100 buses in 

fixed route service during peak service hours, in an amount 

not to exceed 50 percent of the share of the apportionment 

which is attributable to such systems within the urbanized 

area, as measured by vehicle revenue hours. 

‘‘(b) PROGRAM OF PROJECTS.—Each recipient of a grant shall— 

‘‘(1) make available to the public information on amounts 

available to the recipient under this section; 

‘‘(2) develop, in consultation with interested parties, including private transportation providers, a proposed program of 

projects for activities to be financed; 

‘‘(3) publish a proposed program of projects in a way that 

affected individuals, private transportation providers, and local 

elected officials have the opportunity to examine the proposed 

program and submit comments on the proposed program and 

the performance of the recipient; 


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‘‘(4) provide an opportunity for a public hearing in which 

to obtain the views of individuals on the proposed program of 

projects; 

‘‘(5) ensure that the proposed program of projects provides 

for the coordination of public transportation services assisted 

under section 5336 of this title with transportation services assisted from other United States Government sources; 

‘‘(6) consider comments and views received, especially those 

of private transportation providers, in preparing the final program of projects; and 

‘‘(7) make the final program of projects available to the 

public. 

‘‘(c) GRANT RECIPIENT REQUIREMENTS.—A recipient may receive 

a grant in a fiscal year only if— 

‘‘(1) the recipient, within the time the Secretary prescribes, 

submits a final program of projects prepared under subsection 

(b) of this section and a certification for that fiscal year that the 

recipient (including a person receiving amounts from a Governor under this section)— 

‘‘(A) has or will have the legal, financial, and technical 

capacity to carry out the program, including safety and security aspects of the program; 

‘‘(B) has or will have satisfactory continuing control 

over the use of equipment and facilities; 

‘‘(C) will maintain equipment and facilities; 

‘‘(D) will ensure that, during non-peak hours for transportation using or involving a facility or equipment of a 

project financed under this section, a fare that is not more 

than 50 percent of the peak hour fare will be charged for 

any— 

‘‘(i) senior; 

‘‘(ii) individual who, because of illness, injury, age, 

congenital malfunction, or other incapacity or temporary or permanent disability (including an individual who is a wheelchair user or has semiambulatory capability), cannot use a public transportation 

service or a public transportation facility effectively 

without special facilities, planning, or design; and 

‘‘(iii) individual presenting a Medicare card issued 

to that individual under title II or XVIII of the Social 

Security Act (42 U.S.C. 401 et seq. and 1395 et seq.); 

‘‘(E) in carrying out a procurement under this section, 

will comply with sections 5323 and 5325; 

‘‘(F) has complied with subsection (b) of this section; 

‘‘(G) has available and will provide the required 

amounts as provided by subsection (d) of this section; 

‘‘(H) will comply with sections 5303 and 5304; 

‘‘(I) has a locally developed process to solicit and consider public comment before raising a fare or carrying out 

a major reduction of transportation; 

‘‘(J)(i) will expend for each fiscal year for public transportation security projects, including increased lighting in 

or adjacent to a public transportation system (including 

bus stops, subway stations, parking lots, and garages), increased camera surveillance of an area in or adjacent to 


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that system, providing an emergency telephone line to contact law enforcement or security personnel in an area in or 

adjacent to that system, and any other project intended to 

increase the security and safety of an existing or planned 

public transportation system, at least 1 percent of the 

amount the recipient receives for each fiscal year under section 5336 of this title; or 

‘‘(ii) has decided that the expenditure for security 

projects is not necessary; 

‘‘(K) in the case of a recipient for an urbanized area 

with a population of not fewer than 200,000 individuals, as 

determined by the Bureau of the Census— 

‘‘(i) will expend not less than 1 percent of the 

amount the recipient receives each fiscal year under 

this section for associated transit improvements, as defined in section 5302; and 

‘‘(ii) will submit an annual report listing projects 

carried out in the preceding fiscal year with those 

funds; and 

‘‘(L) will comply with section 5329(d); and 

‘‘(2) the Secretary accepts the certification. 

‘‘(d) GOVERNMENT SHARE OF COSTS.— ‘‘(1) CAPITAL PROJECTS.—A grant for a capital project 

under this section shall be for 80 percent of the net project cost 

of the project. The recipient may provide additional local 

matching amounts. 

‘‘(2) OPERATING EXPENSES.—A grant for operating expenses 

under this section may not exceed 50 percent of the net project 

cost of the project. 

‘‘(3) REMAINING COSTS.—Subject to paragraph (4), the remainder of the net project costs shall be provided— 

‘‘(A) in cash from non-Government sources other than 

revenues from providing public transportation services; 

‘‘(B) from revenues from the sale of advertising and 

concessions; 

‘‘(C) from an undistributed cash surplus, a replacement 

or depreciation cash fund or reserve, or new capital; 

‘‘(D) from amounts appropriated or otherwise made 

available to a department or agency of the Government 

(other than the Department of Transportation) that are eligible to be expended for transportation; and 

‘‘(E) from amounts received under a service agreement 

with a State or local social service agency or private social 

service organization. 

‘‘(4) USE OF CERTAIN FUNDS.—For purposes of subparagraphs (D) and (E) of paragraph (3), the prohibitions on the use 

of funds for matching requirements under section 

403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 

603(a)(5)(C)(vii)) shall not apply to Federal or State funds to be 

used for transportation purposes. 

‘‘(e) UNDERTAKING PROJECTS IN ADVANCE.— ‘‘(1) PAYMENT.—The Secretary may pay the Government 

share of the net project cost to a State or local governmental authority that carries out any part of a project eligible under subparagraph (A) or (B) of subsection (a)(1) without the aid of 


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amounts of the Government and according to all applicable procedures and requirements if— 

‘‘(A) the recipient applies for the payment; 

‘‘(B) the Secretary approves the payment; and 

‘‘(C) before carrying out any part of the project, the Secretary approves the plans and specifications for the part in 

the same way as for other projects under this section. 

‘‘(2) APPROVAL OF APPLICATION.—The Secretary may approve an application under paragraph (1) of this subsection 

only if an authorization for this section is in effect for the fiscal 

year to which the application applies. The Secretary may not 

approve an application if the payment will be more than— 

‘‘(A) the recipient’s expected apportionment under section 5336 of this title if the total amount authorized to be 

appropriated for the fiscal year to carry out this section is 

appropriated; less 

‘‘(B) the maximum amount of the apportionment that 

may be made available for projects for operating expenses 

under this section. 

‘‘(3) FINANCING COSTS.— 

‘‘(A) IN GENERAL.—The cost of carrying out part of a 

project includes the amount of interest earned and payable 

on bonds issued by the recipient to the extent proceeds of 

the bonds are expended in carrying out the part. 

‘‘(B) LIMITATION ON THE AMOUNT OF INTEREST.—The 

amount of interest allowed under this paragraph may not 

be more than the most favorable financing terms reasonably available for the project at the time of borrowing. 

‘‘(C) CERTIFICATION.—The applicant shall certify, in a 

manner satisfactory to the Secretary, that the applicant has 

shown reasonable diligence in seeking the most favorable financing terms. 

‘‘(f) REVIEWS, AUDITS, AND EVALUATIONS.— ‘‘(1) ANNUAL REVIEW.— 

‘‘(A) IN GENERAL.—At least annually, the Secretary 

shall carry out, or require a recipient to have carried out 

independently, reviews and audits the Secretary considers 

appropriate to establish whether the recipient has carried 

out— 

‘‘(i) the activities proposed under subsection (c) of 

this section in a timely and effective way and can continue to do so; and 

‘‘(ii) those activities and its certifications and has 

used amounts of the Government in the way required 

by law. 

‘‘(B) AUDITING PROCEDURES.—An audit of the use of 

amounts of the Government shall comply with the auditing 

procedures of the Comptroller General. 

‘‘(2) TRIENNIAL REVIEW.—At least once every 3 years, the 

Secretary shall review and evaluate completely the performance 

of a recipient in carrying out the recipient’s program, specifically referring to compliance with statutory and administrative 

requirements and the extent to which actual program activities 

are consistent with the activities proposed under subsection (c) 

of this section and the planning process required under sections 


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5303, 5304, and 5305 of this title. To the extent practicable, the 

Secretary shall coordinate such reviews with any related State 

or local reviews. 

‘‘(3) ACTIONS RESULTING FROM REVIEW, AUDIT, OR EVALUATION.—The Secretary may take appropriate action consistent 

with a review, audit, and evaluation under this subsection, including making an appropriate adjustment in the amount of a 

grant or withdrawing the grant. 

‘‘(g) TREATMENT.—For purposes of this section, the United 

States Virgin Islands shall be treated as an urbanized area, as defined in section 5302. 

‘‘(h) PASSENGER FERRY GRANTS.— 

‘‘(1) IN GENERAL.—The Secretary may make grants under 

this subsection to recipients for passenger ferry projects that are 

eligible for a grant under subsection (a). 

‘‘(2) GRANT REQUIREMENTS.—Except as otherwise provided 

in this subsection, a grant under this subsection shall be subject 

to the same terms and conditions as a grant under subsection 

(a). 

‘‘(3) COMPETITIVE PROCESS.—The Secretary shall solicit 

grant applications and make grants for eligible projects on a 

competitive basis.’’. 

SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS. 

(a) IN GENERAL.—Section 5309 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5309. Fixed guideway capital investment grants 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

shall apply: 

‘‘(1) APPLICANT.—The term ‘applicant’ means a State or 

local governmental authority that applies for a grant under this 

section. 

‘‘(2) CORE CAPACITY IMPROVEMENT PROJECT.—The term 

‘core capacity improvement project’ means a substantial corridor-based capital investment in an existing fixed guideway 

system that increases the capacity of a corridor by not less than 

10 percent. The term does not include project elements designed 

to maintain a state of good repair of the existing fixed guideway 

system. 

‘‘(3) CORRIDOR-BASED BUS RAPID TRANSIT PROJECT.—The 

term ‘corridor-based bus rapid transit project’ means a small 

start project utilizing buses in which the project represents a 

substantial investment in a defined corridor as demonstrated by 

features that emulate the services provided by rail fixed guideway public transportation systems, including defined stations; 

traffic signal priority for public transportation vehicles; short 

headway bidirectional services for a substantial part of weekdays and weekend days; and any other features the Secretary 

may determine support a long-term corridor investment, but the 

majority of which does not operate in a separated right-of-way 

dedicated for public transportation use during peak periods. 

‘‘(4) FIXED GUIDEWAY BUS RAPID TRANSIT PROJECT.—The 

term ‘fixed guideway bus rapid transit project’ means a bus 

capital project— 


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‘‘(A) in which the majority of the project operates in a 

separated right-of-way dedicated for public transportation 

use during peak periods; 

‘‘(B) that represents a substantial investment in a single route in a defined corridor or subarea; and 

‘‘(C) that includes features that emulate the services 

provided by rail fixed guideway public transportation systems, including— 

‘‘(i) defined stations; 

‘‘(ii) traffic signal priority for public transportation 

vehicles; 

‘‘(iii) short headway bidirectional services for a 

substantial part of weekdays and weekend days; and 

‘‘(iv) any other features the Secretary may determine are necessary to produce high-quality public 

transportation services that emulate the services provided by rail fixed guideway public transportation systems. 

‘‘(5) NEW FIXED GUIDEWAY CAPITAL PROJECT.—The term 

‘new fixed guideway capital project’ means— 

‘‘(A) a new fixed guideway project that is a minimum 

operable segment or extension to an existing fixed guideway 

system; or 

‘‘(B) a fixed guideway bus rapid transit project that is 

a minimum operable segment or an extension to an existing 

bus rapid transit system. 

‘‘(6) PROGRAM OF INTERRELATED PROJECTS.—The term ‘program of interrelated projects’ means the simultaneous development of— 

‘‘(A) 2 or more new fixed guideway capital projects or 

core capacity improvement projects; or 

‘‘(B) 1 or more new fixed guideway capital projects and 

1 or more core capacity improvement projects. 

‘‘(7) SMALL START PROJECT.—The term ‘small start project’ 

means a new fixed guideway capital project or corridor-based 

bus rapid transit project for which— 

‘‘(A) the Federal assistance provided or to be provided 

under this section is less than $75,000,000; and 

‘‘(B) the total estimated net capital cost is less than 

$250,000,000. 

‘‘(b) GENERAL AUTHORITY.—The Secretary may make grants 

under this section to State and local governmental authorities to assist in financing— 

‘‘(1) new fixed guideway capital projects or small start 

projects, including the acquisition of real property, the initial 

acquisition of rolling stock for the system, the acquisition of 

rights-of-way, and relocation, for fixed guideway corridor development for projects in the advanced stages of project development or engineering; and 

‘‘(2) core capacity improvement projects, including the acquisition of real property, the acquisition of rights-of-way, double tracking, signalization improvements, electrification, expanding system platforms, acquisition of rolling stock associated with corridor improvements increasing capacity, construction of infill stations, and such other capacity improvement 


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projects as the Secretary determines are appropriate to increase 

the capacity of an existing fixed guideway system corridor by at 

least 10 percent. Core capacity improvement projects do not include elements to improve general station facilities or parking, 

or acquisition of rolling stock alone. 

‘‘(c) GRANT REQUIREMENTS.— ‘‘(1) IN GENERAL.—The Secretary may make a grant under 

this section for new fixed guideway capital projects, small start 

projects, or core capacity improvement projects, if the Secretary 

determines that— 

‘‘(A) the project is part of an approved transportation 

plan required under sections 5303 and 5304; and 

‘‘(B) the applicant has, or will have— 

‘‘(i) the legal, financial, and technical capacity to 

carry out the project, including the safety and security 

aspects of the project; 

‘‘(ii) satisfactory continuing control over the use of 

the equipment or facilities; and 

‘‘(iii) the technical and financial capacity to maintain new and existing equipment and facilities. 

‘‘(2) CERTIFICATION.—An applicant that has submitted the 

certifications required under subparagraphs (A), (B), (C), and 

(H) of section 5307(c)(1) shall be deemed to have provided sufficient information upon which the Secretary may make the determinations required under this subsection. 

‘‘(3) TECHNICAL CAPACITY.—The Secretary shall use an expedited technical capacity review process for applicants that 

have recently and successfully completed at least 1 new fixed 

guideway capital project, or core capacity improvement project, 

if— 

‘‘(A) the applicant achieved budget, cost, and ridership 

outcomes for the project that are consistent with or better 

than projections; and 

‘‘(B) the applicant demonstrates that the applicant continues to have the staff expertise and other resources necessary to implement a new project. 

‘‘(4) RECIPIENT REQUIREMENTS.—A recipient of a grant 

awarded under this section shall be subject to all terms, conditions, requirements, and provisions that the Secretary determines to be necessary or appropriate for purposes of this section. 

‘‘(d) NEW FIXED GUIDEWAY GRANTS.— 

‘‘(1) PROJECT DEVELOPMENT PHASE.— 

‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— 

A new fixed guideway capital project shall enter into the 

project development phase when— 

‘‘(i) the applicant— 

‘‘(I) submits a letter to the Secretary describing 

the project and requesting entry into the project development phase; and 

‘‘(II) initiates activities required to be carried 

out under the National Environmental Policy Act 

of 1969 (42 U.S.C. 4321 et seq.) with respect to the 

project; and 

‘‘(ii) the Secretary— 


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‘‘(I) responds in writing to the applicant within 45 days whether the information provided is 

sufficient to enter into the project development 

phase, including, when necessary, a detailed description of any information deemed insufficient; 

and 

‘‘(II) provides concurrent notice to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Transportation 

and Infrastructure of the House of Representatives 

of whether the new fixed guideway capital project 

is entering the project development phase. 

‘‘(B) ACTIVITIES DURING PROJECT DEVELOPMENT

PHASE.—Concurrent with the analysis required to be made 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.), each applicant shall develop sufficient 

information to enable the Secretary to make findings of 

project justification, policies and land use patterns that 

promote public transportation, and local financial commitment under this subsection. 

‘‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVI- TIES REQUIRED.— ‘‘(i) IN GENERAL.—Not later than 2 years after the 

date on which a project enters into the project development phase, the applicant shall complete the activities 

required to obtain a project rating under subsection 

(g)(2) and submit completed documentation to the Secretary. 

‘‘(ii) EXTENSION OF TIME.—Upon the request of an 

applicant, the Secretary may extend the time period 

under clause (i), if the applicant submits to the Secretary— 

‘‘(I) a reasonable plan for completing the activities required under this paragraph; and 

‘‘(II) an estimated time period within which 

the applicant will complete such activities. 

‘‘(2) ENGINEERING PHASE.— ‘‘(A) IN GENERAL.—A new fixed guideway capital 

project may advance to the engineering phase upon completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of decision with respect to the project, 

a finding that the project has no significant impact, or a 

determination that the project is categorically excluded, 

only if the Secretary determines that the project— 

‘‘(i) is selected as the locally preferred alternative 

at the completion of the process required under the National Environmental Policy Act of 1969 (42 U.S.C. 

4321 et seq.); 

‘‘(ii) is adopted into the metropolitan transportation plan required under section 5303; 

‘‘(iii) is justified based on a comprehensive review 

of the project’s mobility improvements, the project’s environmental benefits, congestion relief associated with 

the project, economic development effects associated 


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with the project, policies and land use patterns of the 

project that support public transportation, and the 

project’s cost-effectiveness as measured by cost per 

rider; 

‘‘(iv) is supported by policies and land use patterns 

that promote public transportation, including plans for 

future land use and rezoning, and economic development around public transportation stations; and 

‘‘(v) is supported by an acceptable degree of local 

financial commitment (including evidence of stable and 

dependable financing sources), as required under subsection (f). 

‘‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED.—In 

making a determination under subparagraph (A)(iii), the 

Secretary shall evaluate, analyze, and consider— 

‘‘(i) the reliability of the forecasting methods used 

to estimate costs and utilization made by the recipient 

and the contractors to the recipient; and 

‘‘(ii) population density and current public transportation ridership in the transportation corridor. 

‘‘(e) CORE CAPACITY IMPROVEMENT PROJECTS.— ‘‘(1) PROJECT DEVELOPMENT PHASE.— ‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— A core capacity improvement project shall be deemed to 

have entered into the project development phase if— 

‘‘(i) the applicant— 

‘‘(I) submits a letter to the Secretary describing 

the project and requesting entry into the project development phase; and 

‘‘(II) initiates activities required to be carried 

out under the National Environmental Policy Act 

of 1969 (42 U.S.C. 4321 et seq.) with respect to the 

project; and 

‘‘(ii) the Secretary— 

‘‘(I) responds in writing to the applicant within 45 days whether the information provided is 

sufficient to enter into the project development 

phase, including when necessary a detailed description of any information deemed insufficient; 

and 

‘‘(II) provides concurrent notice to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Transportation 

and Infrastructure of the House of Representatives 

of whether the core capacity improvement project is 

entering the project development phase. 

‘‘(B) ACTIVITIES DURING PROJECT DEVELOPMENT

PHASE.—Concurrent with the analysis required to be made 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.), each applicant shall develop sufficient 

information to enable the Secretary to make findings of 

project justification and local financial commitment under 

this subsection. 

‘‘(C) COMPLETION OF PROJECT DEVELOPMENT ACTIVITIES REQUIRED.— 


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‘‘(i) IN GENERAL.—Not later than 2 years after the 

date on which a project enters into the project development phase, the applicant shall complete the activities 

required to obtain a project rating under subsection 

(g)(2) and submit completed documentation to the Secretary. 

‘‘(ii) EXTENSION OF TIME.—Upon the request of an 

applicant, the Secretary may extend the time period 

under clause (i), if the applicant submits to the Secretary— 

‘‘(I) a reasonable plan for completing the activities required under this paragraph; and 

‘‘(II) an estimated time period within which 

the applicant will complete such activities. 

‘‘(2) ENGINEERING PHASE.— 

‘‘(A) IN GENERAL.—A core capacity improvement project 

may advance into the engineering phase upon completion of 

activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), as demonstrated 

by a record of decision with respect to the project, a finding 

that the project has no significant impact, or a determination that the project is categorically excluded, only if the 

Secretary determines that the project— 

‘‘(i) is selected as the locally preferred alternative 

at the completion of the process required under the National Environmental Policy Act of 1969; 

‘‘(ii) is adopted into the metropolitan transportation plan required under section 5303; 

‘‘(iii) is in a corridor that is— 

‘‘(I) at or over capacity; or 

‘‘(II) projected to be at or over capacity within 

the next 5 years; 

‘‘(iv) is justified based on a comprehensive review 

of the project’s mobility improvements, the project’s environmental benefits, congestion relief associated with 

the project, economic development effects associated 

with the project, the capacity needs of the corridor, and 

the project’s cost-effectiveness as measured by cost per 

rider; and 

‘‘(v) is supported by an acceptable degree of local 

financial commitment (including evidence of stable and 

dependable financing sources), as required under subsection (f). 

‘‘(B) DETERMINATION THAT PROJECT IS JUSTIFIED.—In 

making a determination under subparagraph (A)(iv), the 

Secretary shall evaluate, analyze, and consider— 

‘‘(i) the reliability of the forecasting methods used 

to estimate costs and utilization made by the recipient 

and the contractors to the recipient; 

‘‘(ii) whether the project will increase capacity at 

least 10 percent in a corridor; 

‘‘(iii) whether the project will improve 

interconnectivity among existing systems; and 

‘‘(iv) whether the project will improve environmental outcomes. 


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‘‘(f) FINANCING SOURCES.— 

‘‘(1) REQUIREMENTS.—In determining whether a project is 

supported by an acceptable degree of local financial commitment and shows evidence of stable and dependable financing 

sources for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the 

Secretary shall require that— 

‘‘(A) the proposed project plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases 

or funding shortfalls; 

‘‘(B) each proposed local source of capital and operating financing is stable, reliable, and available within the 

proposed project timetable; and 

‘‘(C) local resources are available to recapitalize, maintain, and operate the overall existing and proposed public 

transportation system, including essential feeder bus and 

other services necessary to achieve the projected ridership 

levels without requiring a reduction in existing public 

transportation services or level of service to operate the 

project. 

‘‘(2) CONSIDERATIONS.—In assessing the stability, reliability, and availability of proposed sources of local financing 

for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the Secretary shall consider— 

‘‘(A) the reliability of the forecasting methods used to 

estimate costs and revenues made by the recipient and the 

contractors to the recipient; 

‘‘(B) existing grant commitments; 

‘‘(C) the degree to which financing sources are dedicated to the proposed purposes; 

‘‘(D) any debt obligation that exists, or is proposed by 

the recipient, for the proposed project or other public transportation purpose; 

‘‘(E) the extent to which the project has a local financial commitment that exceeds the required non-Government 

share of the cost of the project; and 

‘‘(F) private contributions to the project, including costeffective project delivery, management or transfer of project 

risks, expedited project schedule, financial partnering, and 

other public-private partnership strategies. 

‘‘(g) PROJECT ADVANCEMENT AND RATINGS.— 

‘‘(1) PROJECT ADVANCEMENT.—A new fixed guideway capital project or core capacity improvement project proposed to be 

carried out using a grant under this section may not advance 

from the project development phase to the engineering phase, or 

from the engineering phase to the construction phase, unless the 

Secretary determines that— 

‘‘(A) the project meets the applicable requirements 

under this section; and 

‘‘(B) there is a reasonable likelihood that the project 

will continue to meet the requirements under this section. 

‘‘(2) RATINGS.— 

‘‘(A) OVERALL RATING.—In making a determination 

under paragraph (1), the Secretary shall evaluate and rate 


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a project as a whole on a 5-point scale (high, medium-high, 

medium, medium-low, or low) based on— 

‘‘(i) in the case of a new fixed guideway capital 

project, the project justification criteria under subsection (d)(2)(A)(iii), the policies and land use patterns 

that support public transportation, and the degree of 

local financial commitment; and 

‘‘(ii) in the case of a core capacity improvement 

project, the capacity needs of the corridor, the project 

justification criteria under subsection (e)(2)(A)(iv), and 

the degree of local financial commitment. 

‘‘(B) INDIVIDUAL RATINGS FOR EACH CRITERION.—In 

rating a project under this paragraph, the Secretary shall— 

‘‘(i) provide, in addition to the overall project rating under subparagraph (A), individual ratings for 

each of the criteria established under subsection 

(d)(2)(A)(iii) or (e)(2)(A)(iv), as applicable; and 

‘‘(ii) give comparable, but not necessarily equal, 

numerical weight to each of the criteria established 

under subsections (d)(2)(A)(iii) or (e)(2)(A)(iv), as applicable, in calculating the overall project rating under 

clause (i). 

‘‘(C) MEDIUM RATING NOT REQUIRED.—The Secretary 

shall not require that any single project justification criterion meet or exceed a ‘medium’ rating in order to advance 

the project from one phase to another. 

‘‘(3) WARRANTS.—The Secretary shall, to the maximum extent practicable, develop and use special warrants for making 

a project justification determination under subsection (d)(2) or 

(e)(2), as applicable, for a project proposed to be funded using 

a grant under this section, if— 

‘‘(A) the share of the cost of the project to be provided 

under this section does not exceed— 

‘‘(i) $100,000,000; or 

‘‘(ii) 50 percent of the total cost of the project; 

‘‘(B) the applicant requests the use of the warrants; 

‘‘(C) the applicant certifies that its existing public 

transportation system is in a state of good repair; and 

‘‘(D) the applicant meets any other requirements that 

the Secretary considers appropriate to carry out this subsection. 

‘‘(4) LETTERS OF INTENT AND EARLY SYSTEMS WORK AGREEMENTS.—In order to expedite a project under this subsection, 

the Secretary shall, to the maximum extent practicable, issue 

letters of intent and enter into early systems work agreements 

upon issuance of a record of decision for projects that receive an 

overall project rating of medium or better. 

‘‘(5) POLICY GUIDANCE.—The Secretary shall issue policy 

guidance regarding the review and evaluation process and criteria— 

‘‘(A) not later than 180 days after the date of enactment 

of the Federal Public Transportation Act of 2012; and 

‘‘(B) each time the Secretary makes significant changes 

to the process and criteria, but not less frequently than once 

every 2 years. 


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‘‘(6) RULES.—Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue rules establishing an evaluation and rating 

process for— 

‘‘(A) new fixed guideway capital projects that is based 

on the results of project justification, policies and land use 

patterns that promote public transportation, and local financial commitment, as required under this subsection; 

and 

‘‘(B) core capacity improvement projects that is based 

on the results of the capacity needs of the corridor, project 

justification, and local financial commitment. 

‘‘(7) APPLICABILITY.—This subsection shall not apply to a 

project for which the Secretary issued a letter of intent, entered 

into a full funding grant agreement, or entered into a project 

construction agreement before the date of enactment of the Federal Public Transportation Act of 2012. 

‘‘(h) SMALL START PROJECTS.— 

‘‘(1) IN GENERAL.—A small start project shall be subject to 

the requirements of this subsection. 

‘‘(2) PROJECT DEVELOPMENT PHASE.— 

‘‘(A) ENTRANCE INTO PROJECT DEVELOPMENT PHASE.— 

A new small starts project shall enter into the project development phase when— 

‘‘(i) the applicant— 

‘‘(I) submits a letter to the Secretary describing 

the project and requesting entry into the project development phase; and 

‘‘(II) initiates activities required to be carried 

out under the National Environmental Policy Act 

of 1969 (42 U.S.C. 4321 et seq.) with respect to the 

project; and 

‘‘(ii) the Secretary— 

‘‘(I) responds in writing to the applicant within 45 days whether the information provided is 

sufficient to enter into the project development 

phase, including, when necessary, a detailed description of any information deemed insufficient; 

and 

‘‘(II) provides concurrent notice to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Transportation 

and Infrastructure of the House of Representatives 

of whether the small starts project is entering the 

project development phase. 

‘‘(B) ACTIVITIES DURING PROJECT DEVELOPMENT

PHASE.—Concurrent with the analysis required to be made 

under the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.), each applicant shall develop sufficient 

information to enable the Secretary to make findings of 

project justification, policies and land use patterns that 

promote public transportation, and local financial commitment under this subsection. 


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‘‘(3) SELECTION CRITERIA.—The Secretary may provide Federal assistance for a small start project under this subsection 

only if the Secretary determines that the project— 

‘‘(A) has been adopted as the locally preferred alternative as part of the metropolitan transportation plan required under section 5303; 

‘‘(B) is based on the results of an analysis of the benefits of the project as set forth in paragraph (4); and 

‘‘(C) is supported by an acceptable degree of local financial commitment. 

‘‘(4) EVALUATION OF BENEFITS AND FEDERAL INVESTMENT.— In making a determination for a small start project under paragraph (3)(B), the Secretary shall analyze, evaluate, and consider the following evaluation criteria for the project (as compared to a no-action alternative): mobility improvements, environmental benefits, congestion relief, economic development effects associated with the project, policies and land use patterns 

that support public transportation and cost-effectiveness as 

measured by cost per rider. 

‘‘(5) EVALUATION OF LOCAL FINANCIAL COMMITMENT.—For 

purposes of paragraph (3)(C), the Secretary shall require that 

each proposed local source of capital and operating financing is 

stable, reliable, and available within the proposed project timetable. 

‘‘(6) RATINGS.—In carrying out paragraphs (4) and (5) for 

a small start project, the Secretary shall evaluate and rate the 

project on a 5-point scale (high, medium-high, medium, medium-low, or low) based on an evaluation of the benefits of the 

project as compared to the Federal assistance to be provided 

and the degree of local financial commitment, as required 

under this subsection. In rating the projects, the Secretary shall 

provide, in addition to the overall project rating, individual ratings for each of the criteria established by this subsection and 

shall give comparable, but not necessarily equal, numerical 

weight to the benefits that the project will bring to the community in calculating the overall project rating. 

‘‘(7) GRANTS AND EXPEDITED GRANT AGREEMENTS.— ‘‘(A) IN GENERAL.—The Secretary, to the maximum extent practicable, shall provide Federal assistance under this 

subsection in a single grant. If the Secretary cannot provide 

such a single grant, the Secretary may execute an expedited 

grant agreement in order to include a commitment on the 

part of the Secretary to provide funding for the project in 

future fiscal years. 

‘‘(B) TERMS OF EXPEDITED GRANT AGREEMENTS.—In 

executing an expedited grant agreement under this subsection, the Secretary may include in the agreement terms 

similar to those established under subsection (k)(2). 

‘‘(C) NOTICE OF PROPOSED GRANTS AND EXPEDITED

GRANT AGREEMENTS.—At least 10 days before making a 

grant award or entering into a grant agreement for a 

project under this subsection, the Secretary shall notify, in 

writing, the Committee on Transportation and Infrastructure and the Committee on Appropriations of the House of 

Representatives and the Committee on Banking, Housing, 


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and Urban Affairs and the Committee on Appropriations of 

the Senate of the proposed grant or expedited grant agreement, as well as the evaluations and ratings for the project. 

‘‘(i) PROGRAMS OF INTERRELATED PROJECTS.— ‘‘(1) PROJECT DEVELOPMENT PHASE.—A federally funded 

project in a program of interrelated projects shall advance 

through project development as provided in subsection (d) or (e), 

as applicable. 

‘‘(2) ENGINEERING PHASE.—A federally funded project in a 

program of interrelated projects may advance into the engineering phase upon completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

seq.), as demonstrated by a record of decision with respect to 

the project, a finding that the project has no significant impact, 

or a determination that the project is categorically excluded, 

only if the Secretary determines that— 

‘‘(A) the project is selected as the locally preferred alternative at the completion of the process required under the 

National Environmental Policy Act of 1969; 

‘‘(B) the project is adopted into the metropolitan transportation plan required under section 5303; 

‘‘(C) the program of interrelated projects involves 

projects that have a logical connectivity to one another; 

‘‘(D) the program of interrelated projects, when evaluated as a whole, meets the requirements of subsection (d)(2) 

or (e)(2), as applicable; 

‘‘(E) the program of interrelated projects is supported 

by a program implementation plan demonstrating that construction will begin on each of the projects in the program 

of interrelated projects within a reasonable time frame; and 

‘‘(F) the program of interrelated projects is supported 

by an acceptable degree of local financial commitment, as 

described in subsection (f). 

‘‘(3) PROJECT ADVANCEMENT AND RATINGS.— 

‘‘(A) PROJECT ADVANCEMENT.—A project receiving a 

grant under this section that is part of a program of interrelated projects may not advance from the project development phase to the engineering phase, or from the engineering phase to the construction phase, unless the Secretary 

determines that the program of interrelated projects meets 

the applicable requirements of this section and there is a 

reasonable likelihood that the program will continue to 

meet such requirements. 

‘‘(B) RATINGS.— 

‘‘(i) OVERALL RATING.—In making a determination 

under subparagraph (A), the Secretary shall evaluate 

and rate a program of interrelated projects on a 5-point 

scale (high, medium-high, medium, medium-low, or 

low) based on the criteria described in paragraph (2). 

‘‘(ii) INDIVIDUAL RATING FOR EACH CRITERION.—In 

rating a program of interrelated projects, the Secretary 

shall provide, in addition to the overall program rating, individual ratings for each of the criteria described in paragraph (2) and shall give comparable, 

but not necessarily equal, numerical weight to each 


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such criterion in calculating the overall program rating. 

‘‘(iii) MEDIUM RATING NOT REQUIRED.—The Secretary shall not require that any single criterion described in paragraph (2) meet or exceed a ‘medium’ rating in order to advance the program of interrelated 

projects from one phase to another. 

‘‘(4) ANNUAL REVIEW.— ‘‘(A) REVIEW REQUIRED.—The Secretary shall annually 

review the program implementation plan required under 

paragraph (2)(E) to determine whether the program of 

interrelated projects is adhering to its schedule. 

‘‘(B) EXTENSION OF TIME.—If a program of interrelated 

projects is not adhering to its schedule, the Secretary may, 

upon the request of the applicant, grant an extension of 

time if the applicant submits a reasonable plan that includes— 

‘‘(i) evidence of continued adequate funding; and 

‘‘(ii) an estimated time frame for completing the 

program of interrelated projects. 

‘‘(C) SATISFACTORY PROGRESS REQUIRED.—If the Secretary determines that a program of interrelated projects is 

not making satisfactory progress, no Federal funds shall be 

provided for a project within the program of interrelated 

projects. 

‘‘(5) FAILURE TO CARRY OUT PROGRAM OF INTERRELATED

PROJECTS.— 

‘‘(A) REPAYMENT REQUIRED.—If an applicant does not 

carry out the program of interrelated projects within a reasonable time, for reasons within the control of the applicant, the applicant shall repay all Federal funds provided 

for the program, and any reasonable interest and penalty 

charges that the Secretary may establish. 

‘‘(B) CREDITING OF FUNDS RECEIVED.—Any funds received by the Government under this paragraph, other than 

interest and penalty charges, shall be credited to the appropriation account from which the funds were originally derived. 

‘‘(6) NON-FEDERAL FUNDS.—Any non-Federal funds committed to a project in a program of interrelated projects may be 

used to meet a non-Government share requirement for any other 

project in the program of interrelated projects, if the Government share of the cost of each project within the program of 

interrelated projects does not exceed 80 percent. 

‘‘(7) PRIORITY.—In making grants under this section, the 

Secretary may give priority to programs of interrelated projects 

for which the non-Government share of the cost of the projects 

included in the programs of interrelated projects exceeds the 

non-Government share required under subsection (l). 

‘‘(8) NON-GOVERNMENT PROJECTS.—Including a project not 

financed by the Government in a program of interrelated 

projects does not impose Government requirements that would 

not otherwise apply to the project. 

‘‘(j) PREVIOUSLY ISSUED LETTER OF INTENT OR FULL FUNDING

GRANT AGREEMENT.—Subsections (d) and (e) shall not apply to 


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projects for which the Secretary has issued a letter of intent, approved entry into final design, entered into a full funding grant 

agreement, or entered into a project construction grant agreement 

before the date of enactment of the Federal Public Transportation 

Act of 2012. 

‘‘(k) LETTERS OF INTENT, FULL FUNDING GRANT AGREEMENTS, 

AND EARLY SYSTEMS WORK AGREEMENTS.— 

‘‘(1) LETTERS OF INTENT.— 

‘‘(A) AMOUNTS INTENDED TO BE OBLIGATED.—The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a new fixed guideway capital project or core capacity improvement project, an 

amount from future available budget authority specified in 

law that is not more than the amount stipulated as the financial participation of the Secretary in the project. When 

a letter is issued for a capital project under this section, the 

amount shall be sufficient to complete at least an operable 

segment. 

‘‘(B) TREATMENT.—The issuance of a letter under subparagraph (A) is deemed not to be an obligation under sections 1108(c), 1501, and 1502(a) of title 31 or an administrative commitment. 

‘‘(2) FULL FUNDING GRANT AGREEMENTS.— 

‘‘(A) IN GENERAL.—A new fixed guideway capital 

project or core capacity improvement project shall be carried out through a full funding grant agreement. 

‘‘(B) CRITERIA.—The Secretary shall enter into a full 

funding grant agreement, based on the evaluations and ratings required under subsection (d), (e), or (i), as applicable, 

with each grantee receiving assistance for a new fixed 

guideway capital project or core capacity improvement 

project that has been rated as high, medium-high, or medium, in accordance with subsection (g)(2)(A) or (i)(3)(B), 

as applicable. 

‘‘(C) TERMS.—A full funding grant agreement shall— 

‘‘(i) establish the terms of participation by the Government in a new fixed guideway capital project or core 

capacity improvement project; 

‘‘(ii) establish the maximum amount of Federal financial assistance for the project; 

‘‘(iii) include the period of time for completing the 

project, even if that period extends beyond the period of 

an authorization; and 

‘‘(iv) make timely and efficient management of the 

project easier according to the law of the United States. 

‘‘(D) SPECIAL FINANCIAL RULES.— 

‘‘(i) IN GENERAL.—A full funding grant agreement 

under this paragraph obligates an amount of available 

budget authority specified in law and may include a 

commitment, contingent on amounts to be specified in 

law in advance for commitments under this paragraph, 

to obligate an additional amount from future available 

budget authority specified in law. 


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‘‘(ii) STATEMENT OF CONTINGENT COMMITMENT.— 

The agreement shall state that the contingent commitment is not an obligation of the Government. 

‘‘(iii) INTEREST AND OTHER FINANCING COSTS.—Interest and other financing costs of efficiently carrying 

out a part of the project within a reasonable time are 

a cost of carrying out the project under a full funding 

grant agreement, except that eligible costs may not be 

more than the cost of the most favorable financing 

terms reasonably available for the project at the time 

of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown 

reasonable diligence in seeking the most favorable financing terms. 

‘‘(iv) COMPLETION OF OPERABLE SEGMENT.—The 

amount stipulated in an agreement under this paragraph for a new fixed guideway capital project shall be 

sufficient to complete at least an operable segment. 

‘‘(E) BEFORE AND AFTER STUDY.— 

‘‘(i) IN GENERAL.—A full funding grant agreement 

under this paragraph shall require the applicant to 

conduct a study that— 

‘‘(I) describes and analyzes the impacts of the 

new fixed guideway capital project or core capacity 

improvement project on public transportation services and public transportation ridership; 

‘‘(II) evaluates the consistency of predicted and 

actual project characteristics and performance; 

and 

‘‘(III) identifies reasons for differences between 

predicted and actual outcomes. 

‘‘(ii) INFORMATION COLLECTION AND ANALYSIS

PLAN.— 

‘‘(I) SUBMISSION OF PLAN.—Applicants seeking 

a full funding grant agreement under this paragraph shall submit a complete plan for the collection and analysis of information to identify the impacts of the new fixed guideway capital project or 

core capacity improvement project and the accuracy of the forecasts prepared during the development of the project. Preparation of this plan shall 

be included in the full funding grant agreement as 

an eligible activity. 

‘‘(II) CONTENTS OF PLAN.—The plan submitted 

under subclause (I) shall provide for— 

‘‘(aa) collection of data on the current public transportation system regarding public 

transportation service levels and ridership patterns, including origins and destinations, access modes, trip purposes, and rider characteristics; 

‘‘(bb) documentation of the predicted 

scope, service levels, capital costs, operating 

costs, and ridership of the project; 


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‘‘(cc) collection of data on the public transportation system 2 years after the opening of a 

new fixed guideway capital project or core capacity improvement project, including analogous information on public transportation 

service levels and ridership patterns and information on the as-built scope, capital, and financing costs of the project; and 

‘‘(dd) analysis of the consistency of predicted project characteristics with actual outcomes. 

‘‘(F) COLLECTION OF DATA ON CURRENT SYSTEM.—To be 

eligible for a full funding grant agreement under this paragraph, recipients shall have collected data on the current 

system, according to the plan required under subparagraph 

(E)(ii), before the beginning of construction of the proposed 

new fixed guideway capital project or core capacity improvement project. Collection of this data shall be included 

in the full funding grant agreement as an eligible activity. 

‘‘(3) EARLY SYSTEMS WORK AGREEMENTS.— 

‘‘(A) CONDITIONS.—The Secretary may enter into an 

early systems work agreement with an applicant if a record 

of decision under the National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.) has been issued on the project 

and the Secretary finds there is reason to believe— 

‘‘(i) a full funding grant agreement for the project 

will be made; and 

‘‘(ii) the terms of the work agreement will promote 

ultimate completion of the project more rapidly and at 

less cost. 

‘‘(B) CONTENTS.— ‘‘(i) IN GENERAL.—An early systems work agreement under this paragraph obligates budget authority 

available under this chapter and title 23 and shall provide for reimbursement of preliminary costs of carrying 

out the project, including land acquisition, timely procurement of system elements for which specifications 

are decided, and other activities the Secretary decides 

are appropriate to make efficient, long-term project 

management easier. 

‘‘(ii) CONTINGENT COMMITMENT.—An early systems 

work agreement may include a commitment, contingent 

on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority 

specified in law. 

‘‘(iii) PERIOD COVERED.—An early systems work 

agreement under this paragraph shall cover the period 

of time the Secretary considers appropriate. The period 

may extend beyond the period of current authorization. 

‘‘(iv) INTEREST AND OTHER FINANCING COSTS.—Interest and other financing costs of efficiently carrying 

out the early systems work agreement within a reasonable time are a cost of carrying out the agreement, except that eligible costs may not be more than the cost 


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of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. 

‘‘(v) FAILURE TO CARRY OUT PROJECT.—If an applicant does not carry out the project for reasons within 

the control of the applicant, the applicant shall repay 

all Federal grant funds awarded for the project from 

all Federal funding sources, for all project activities, 

facilities, and equipment, plus reasonable interest and 

penalty charges allowable by law or established by the 

Secretary in the early systems work agreement. 

‘‘(vi) CREDITING OF FUNDS RECEIVED.—Any funds 

received by the Government under this paragraph, 

other than interest and penalty charges, shall be credited to the appropriation account from which the funds 

were originally derived. 

‘‘(4) LIMITATION ON AMOUNTS.— 

‘‘(A) IN GENERAL.—The Secretary may enter into full 

funding grant agreements under this subsection for new 

fixed guideway capital projects and core capacity improvement projects that contain contingent commitments to incur 

obligations in such amounts as the Secretary determines 

are appropriate. 

‘‘(B) APPROPRIATION REQUIRED.—An obligation may be 

made under this subsection only when amounts are appropriated for the obligation. 

‘‘(5) NOTIFICATION TO CONGRESS.—At least 30 days before 

issuing a letter of intent, entering into a full funding grant 

agreement, or entering into an early systems work agreement 

under this section, the Secretary shall notify, in writing, the 

Committee on Banking, Housing, and Urban Affairs and the 

Committee on Appropriations of the Senate and the Committee 

on Transportation and Infrastructure and the Committee on 

Appropriations of the House of Representatives of the proposed 

letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement as well as the 

evaluations and ratings for the project. 

‘‘(l) GOVERNMENT SHARE OF NET CAPITAL PROJECT COST.— 

‘‘(1) IN GENERAL.—Based on engineering studies, studies of 

economic feasibility, and information on the expected use of 

equipment or facilities, the Secretary shall estimate the net capital project cost. A grant for a fixed guideway project or small 

start project shall not exceed 80 percent of the net capital 

project cost. A grant for a core capacity project shall not exceed 

80 percent of the net capital project cost of the incremental cost 

of increasing the capacity in the corridor. 

‘‘(2) ADJUSTMENT FOR COMPLETION UNDER BUDGET.—The 

Secretary may adjust the final net capital project cost of a new 

fixed guideway capital project or core capacity improvement 

project evaluated under subsection (d), (e), or (i) to include the 

cost of eligible activities not included in the originally defined 

project if the Secretary determines that the originally defined 


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project has been completed at a cost that is significantly below 

the original estimate. 

‘‘(3) MAXIMUM GOVERNMENT SHARE.—The Secretary may 

provide a higher grant percentage than requested by the grant 

recipient if— 

‘‘(A) the Secretary determines that the net capital 

project cost of the project is not more than 10 percent higher than the net capital project cost estimated at the time the 

project was approved for advancement into the engineering 

phase; and 

‘‘(B) the ridership estimated for the project is not less 

than 90 percent of the ridership estimated for the project at 

the time the project was approved for advancement into the 

engineering phase. 

‘‘(4) REMAINDER OF NET CAPITAL PROJECT COST.—The remainder of the net capital project cost shall be provided from 

an undistributed cash surplus, a replacement or depreciation 

cash fund or reserve, or new capital. 

‘‘(5) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing 

in this section shall be construed as authorizing the Secretary 

to require a non-Federal financial commitment for a project 

that is more than 20 percent of the net capital project cost. 

‘‘(6) SPECIAL RULE FOR ROLLING STOCK COSTS.—In addition 

to amounts allowed pursuant to paragraph (1), a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the applicant satisfies the Secretary that only amounts other than amounts provided by the 

Government were used and that the purchase was made for use 

on the extension. A refund or reduction of the remainder may 

be made only if a refund of a proportional amount of the grant 

of the Government is made at the same time. 

‘‘(7) LIMITATION ON APPLICABILITY.—This subsection shall 

not apply to projects for which the Secretary entered into a full 

funding grant agreement before the date of enactment of the 

Federal Public Transportation Act of 2012. 

‘‘(8) SPECIAL RULE FOR FIXED GUIDEWAY BUS RAPID TRANSIT

PROJECTS.—For up to three fixed-guideway bus rapid transit 

projects each fiscal year the Secretary shall— 

‘‘(A) establish a Government share of at least 80 percent; and 

‘‘(B) not lower the project’s rating for degree of local financial commitment for purposes of subsections (d)(2)(A)(v) 

or (h)(3)(C) as a result of the Government share specified 

in this paragraph. 

‘‘(m) UNDERTAKING PROJECTS IN ADVANCE.— 

‘‘(1) IN GENERAL.—The Secretary may pay the Government 

share of the net capital project cost to a State or local governmental authority that carries out any part of a project described 

in this section without the aid of amounts of the Government 

and according to all applicable procedures and requirements 

if— 

‘‘(A) the State or local governmental authority applies 

for the payment; 

‘‘(B) the Secretary approves the payment; and 


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‘‘(C) before the State or local governmental authority 

carries out the part of the project, the Secretary approves 

the plans and specifications for the part in the same way 

as other projects under this section. 

‘‘(2) FINANCING COSTS.— ‘‘(A) IN GENERAL.—The cost of carrying out part of a 

project includes the amount of interest earned and payable 

on bonds issued by the State or local governmental authority to the extent proceeds of the bonds are expended in carrying out the part. 

‘‘(B) LIMITATION ON AMOUNT OF INTEREST.—The 

amount of interest under this paragraph may not be more 

than the most favorable interest terms reasonably available 

for the project at the time of borrowing. 

‘‘(C) CERTIFICATION.—The applicant shall certify, in a 

manner satisfactory to the Secretary, that the applicant has 

shown reasonable diligence in seeking the most favorable financing terms. 

‘‘(n) AVAILABILITY OF AMOUNTS.— 

‘‘(1) IN GENERAL.—An amount made available or appropriated for a new fixed guideway capital project or core capacity 

improvement project shall remain available to that project for 

5 fiscal years, including the fiscal year in which the amount is 

made available or appropriated. Any amounts that are unobligated to the project at the end of the 5-fiscal-year period may 

be used by the Secretary for any purpose under this section. 

‘‘(2) USE OF DEOBLIGATED AMOUNTS.—An amount available 

under this section that is deobligated may be used for any purpose under this section. 

‘‘(o) REPORTS ON NEW FIXED GUIDEWAY AND CORE CAPACITY

IMPROVEMENT PROJECTS.— ‘‘(1) ANNUAL REPORT ON FUNDING RECOMMENDATIONS.—Not 

later than the first Monday in February of each year, the Secretary shall submit to the Committee on Banking, Housing, and 

Urban Affairs and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure 

and the Committee on Appropriations of the House of Representatives a report that includes— 

‘‘(A) a proposal of allocations of amounts to be available to finance grants for projects under this section among 

applicants for these amounts; 

‘‘(B) evaluations and ratings, as required under subsections (d), (e), and (i), for each such project that is in 

project development, engineering, or has received a full 

funding grant agreement; and 

‘‘(C) recommendations of such projects for funding 

based on the evaluations and ratings and on existing commitments and anticipated funding levels for the next 3 fiscal years based on information currently available to the 

Secretary. 

‘‘(2) REPORTS ON BEFORE AND AFTER STUDIES.—Not later 

than the first Monday in August of each year, the Secretary 

shall submit to the committees described in paragraph (1) a report containing a summary of the results of any studies conducted under subsection (k)(2)(E). 


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‘‘(3) BIENNIAL GAO REVIEW.—The Comptroller General of 

the United States shall— 

‘‘(A) conduct a biennial review of— 

‘‘(i) the processes and procedures for evaluating, 

rating, and recommending new fixed guideway capital 

projects and core capacity improvement projects; and 

‘‘(ii) the Secretary’s implementation of such processes and procedures; and 

‘‘(B) report to Congress on the results of such review by 

May 31 of each year.’’. 

(b) PILOT PROGRAM FOR EXPEDITED PROJECT DELIVERY.— (1) DEFINITIONS.—In this subsection the following definitions shall apply: 

(A) ELIGIBLE PROJECT.—The term ‘‘eligible project’’ 

means a new fixed guideway capital project or a core capacity improvement project, as those terms are defined in 

section 5309 of title 49, United States Code, as amended by 

this section, that has not entered into a full funding grant 

agreement with the Federal Transit Administration before 

the date of enactment of the Federal Public Transportation 

Act of 2012. 

(B) PROGRAM.—The term ‘‘program’’ means the pilot 

program for expedited project delivery established under 

this subsection. 

(C) RECIPIENT.—The term ‘‘recipient’’ means a recipient 

of funding under chapter 53 of title 49, United States Code. 

(D) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Transportation. 

(2) ESTABLISHMENT.—The Secretary shall establish and 

implement a pilot program to demonstrate whether innovative 

project development and delivery methods or innovative financing arrangements can expedite project delivery for certain meritorious new fixed guideway capital projects and core capacity 

improvement projects. 

(3) LIMITATION ON NUMBER OF PROJECTS.—The Secretary 

shall select 3 eligible projects to participate in the program, of 

which— 

(A) at least 1 shall be an eligible project requesting more than $100,000,000 in Federal financial assistance 

under section 5309 of title 49, United States Code; and 

(B) at least 1 shall be an eligible project requesting less than $100,000,000 in Federal financial assistance under 

section 5309 of title 49, United States Code. 

(4) GOVERNMENT SHARE.—The Government share of the 

total cost of an eligible project that participates in the program 

may not exceed 50 percent. 

(5) ELIGIBILITY.—A recipient that desires to participate in 

the program shall submit to the Secretary an application that 

contains, at a minimum— 

(A) identification of an eligible project; 

(B) a schedule and finance plan for the construction 

and operation of the eligible project; 

(C) an analysis of the efficiencies of the proposed 

project development and delivery methods or innovative financing arrangement for the eligible project; and 


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(D) a certification that the recipient’s existing public 

transportation system is in a state of good repair. 

(6) SELECTION CRITERIA.—The Secretary may award a full 

funding grant agreement under this subsection if the Secretary 

determines that— 

(A) the recipient has completed planning and the activities required under the National Environmental Policy 

Act of 1969 (42 U.S.C. 4321 et seq.); and 

(B) the recipient has the necessary legal, financial, and 

technical capacity to carry out the eligible project. 

(7) BEFORE AND AFTER STUDY AND REPORT.— 

(A) STUDY REQUIRED.—A full funding grant agreement 

under this paragraph shall require a recipient to conduct 

a study that— 

(i) describes and analyzes the impacts of the eligible project on public transportation services and public 

transportation ridership; 

(ii) describes and analyzes the consistency of predicted and actual benefits and costs of the innovative 

project development and delivery methods or innovative 

financing for the eligible project; and 

(iii) identifies reasons for any differences between 

predicted and actual outcomes for the eligible project. 

(B) SUBMISSION OF REPORT.—Not later than 9 months 

after an eligible project selected to participate in the program begins revenue operations, the recipient shall submit 

to the Secretary a report on the results of the study under 

subparagraph (A). 

SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES. 

Section 5310 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5310. Formula grants for the enhanced mobility of seniors 

and individuals with disabilities 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

shall apply: 

‘‘(1) RECIPIENT.—The term ‘recipient’ means a designated 

recipient or a State that receives a grant under this section directly. 

‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ means a State 

or local governmental authority, a private nonprofit organization, or an operator of public transportation that receives a 

grant under this section indirectly through a recipient. 

‘‘(b) GENERAL AUTHORITY.— 

‘‘(1) GRANTS.—The Secretary may make grants under this 

section to recipients for— 

‘‘(A) public transportation projects planned, designed, 

and carried out to meet the special needs of seniors and individuals with disabilities when public transportation is 

insufficient, inappropriate, or unavailable; 

‘‘(B) public transportation projects that exceed the requirements of the Americans with Disabilities Act of 1990 

(42 U.S.C. 12101 et seq.); 


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‘‘(C) public transportation projects that improve access 

to fixed route service and decrease reliance by individuals 

with disabilities on complementary paratransit; and 

‘‘(D) alternatives to public transportation that assist 

seniors and individuals with disabilities with transportation. 

‘‘(2) LIMITATIONS FOR CAPITAL PROJECTS.— ‘‘(A) AMOUNT AVAILABLE.—The amount available for 

capital projects under paragraph (1)(A) shall be not less 

than 55 percent of the funds apportioned to the recipient 

under this section. 

‘‘(B) ALLOCATION TO SUBRECIPIENTS.—A recipient of a 

grant under paragraph (1)(A) may allocate the amounts 

provided under the grant to— 

‘‘(i) a private nonprofit organization; or 

‘‘(ii) a State or local governmental authority that— 

‘‘(I) is approved by a State to coordinate services for seniors and individuals with disabilities; 

or 

‘‘(II) certifies that there are no private nonprofit organizations readily available in the area 

to provide the services described in paragraph 

(1)(A). 

‘‘(3) ADMINISTRATIVE EXPENSES.—A recipient may use not 

more than 10 percent of the amounts apportioned to the recipient under this section to administer, plan, and provide technical assistance for a project funded under this section. 

‘‘(4) ELIGIBLE CAPITAL EXPENSES.—The acquisition of public transportation services is an eligible capital expense under 

this section. 

‘‘(5) COORDINATION.— ‘‘(A) DEPARTMENT OF TRANSPORTATION.—To the maximum extent feasible, the Secretary shall coordinate activities under this section with related activities under other 

Federal departments and agencies. 

‘‘(B) OTHER FEDERAL AGENCIES AND NONPROFIT ORGA- NIZATIONS.—A State or local governmental authority or 

nonprofit organization that receives assistance from Government sources (other than the Department of Transportation) for nonemergency transportation services shall— 

‘‘(i) participate and coordinate with recipients of 

assistance under this chapter in the design and delivery of transportation services; and 

‘‘(ii) participate in the planning for the transportation services described in clause (i). 

‘‘(6) PROGRAM OF PROJECTS.— 

‘‘(A) IN GENERAL.—Amounts made available to carry 

out this section may be used for transportation projects to 

assist in providing transportation services for seniors and 

individuals with disabilities, if such transportation projects 

are included in a program of projects. 

‘‘(B) SUBMISSION.—A recipient shall annually submit a 

program of projects to the Secretary. 

‘‘(C) ASSURANCE.—The program of projects submitted 

under subparagraph (B) shall contain an assurance that 


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the program provides for the maximum feasible coordination of transportation services assisted under this section 

with transportation services assisted by other Government 

sources. 

‘‘(7) MEAL DELIVERY FOR HOMEBOUND INDIVIDUALS.—A 

public transportation service provider that receives assistance 

under this section or section 5311(c) may coordinate and assist 

in regularly providing meal delivery service for homebound individuals, if the delivery service does not conflict with providing 

public transportation service or reduce service to public transportation passengers. 

‘‘(c) APPORTIONMENT AND TRANSFERS.— 

‘‘(1) FORMULA.—The Secretary shall apportion amounts 

made available to carry out this section as follows: 

‘‘(A) LARGE URBANIZED AREAS.—Sixty percent of the 

funds shall be apportioned among designated recipients for 

urbanized areas with a population of 200,000 or more individuals, as determined by the Bureau of the Census, in the 

ratio that— 

‘‘(i) the number of seniors and individuals with 

disabilities in each such urbanized area; bears to 

‘‘(ii) the number of seniors and individuals with 

disabilities in all such urbanized areas. 

‘‘(B) SMALL URBANIZED AREAS.—Twenty percent of the 

funds shall be apportioned among the States in the ratio 

that— 

‘‘(i) the number of seniors and individuals with 

disabilities in urbanized areas with a population of 

fewer than 200,000 individuals, as determined by the 

Bureau of the Census, in each State; bears to 

‘‘(ii) the number of seniors and individuals with 

disabilities in urbanized areas with a population of 

fewer than 200,000 individuals, as determined by the 

Bureau of the Census, in all States. 

‘‘(C) RURAL AREAS.—Twenty percent of the funds shall 

be apportioned among the States in the ratio that— 

‘‘(i) the number of seniors and individuals with 

disabilities in rural areas in each State; bears to 

‘‘(ii) the number of seniors and individuals with 

disabilities in rural areas in all States. 

‘‘(2) AREAS SERVED BY PROJECTS.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B)— 

‘‘(i) funds apportioned under paragraph (1)(A) 

shall be used for projects serving urbanized areas with 

a population of 200,000 or more individuals, as determined by the Bureau of the Census; 

‘‘(ii) funds apportioned under paragraph (1)(B) 

shall be used for projects serving urbanized areas with 

a population of fewer than 200,000 individuals, as determined by the Bureau of the Census; and 

‘‘(iii) funds apportioned under paragraph (1)(C) 

shall be used for projects serving rural areas. 


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‘‘(B) EXCEPTIONS.—A State may use funds apportioned 

to the State under subparagraph (B) or (C) of paragraph 

(1)— 

‘‘(i) for a project serving an area other than an 

area specified in subparagraph (A)(ii) or (A)(iii), as the 

case may be, if the Governor of the State certifies that 

all of the objectives of this section are being met in the 

area specified in subparagraph (A)(ii) or (A)(iii); or 

‘‘(ii) for a project anywhere in the State, if the 

State has established a statewide program for meeting 

the objectives of this section. 

‘‘(C) LIMITED TO ELIGIBLE PROJECTS.—Any funds transferred pursuant to subparagraph (B) shall be made available only for eligible projects selected under this section. 

‘‘(D) CONSULTATION.—A recipient may transfer an 

amount under subparagraph (B) only after consulting with 

responsible local officials, publicly owned operators of public transportation, and nonprofit providers in the area for 

which the amount was originally apportioned. 

‘‘(d) GOVERNMENT SHARE OF COSTS.— 

‘‘(1) CAPITAL PROJECTS.—A grant for a capital project 

under this section shall be in an amount equal to 80 percent of 

the net capital costs of the project, as determined by the Secretary. 

‘‘(2) OPERATING ASSISTANCE.—A grant made under this section for operating assistance may not exceed an amount equal 

to 50 percent of the net operating costs of the project, as determined by the Secretary. 

‘‘(3) REMAINDER OF NET COSTS.—The remainder of the net 

costs of a project carried out under this section— 

‘‘(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a 

service agreement with a State or local social service agency 

or a private social service organization, or new capital; and 

‘‘(B) may be derived from amounts appropriated or otherwise made available— 

‘‘(i) to a department or agency of the Government 

(other than the Department of Transportation) that are 

eligible to be expended for transportation; or 

‘‘(ii) to carry out the Federal lands highways program under section 204 of title 23. 

‘‘(4) USE OF CERTAIN FUNDS.—For purposes of paragraph 

(3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of the 

Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use of 

grant funds for matching requirements shall not apply to Federal or State funds to be used for transportation purposes. 

‘‘(e) GRANT REQUIREMENTS.— 

‘‘(1) IN GENERAL.—A grant under this section shall be subject to the same requirements as a grant under section 5307, to 

the extent the Secretary determines appropriate. 

‘‘(2) CERTIFICATION REQUIREMENTS.— 

‘‘(A) PROJECT SELECTION AND PLAN DEVELOPMENT.— 

Before receiving a grant under this section, each recipient 

shall certify that— 


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‘‘(i) the projects selected by the recipient are included in a locally developed, coordinated public transit-human services transportation plan; 

‘‘(ii) the plan described in clause (i) was developed 

and approved through a process that included participation by seniors, individuals with disabilities, representatives of public, private, and nonprofit transportation and human services providers, and other members of the public; and 

‘‘(iii) to the maximum extent feasible, the services 

funded under this section will be coordinated with 

transportation services assisted by other Federal departments and agencies, including any transportation 

activities carried out by a recipient of a grant from the 

Department of Health and Human Services. 

‘‘(B) ALLOCATIONS TO SUBRECIPIENTS.—If a recipient 

allocates funds received under this section to subrecipients, 

the recipient shall certify that the funds are allocated on a 

fair and equitable basis. 

‘‘(f) COMPETITIVE PROCESS FOR GRANTS TO SUBRECIPIENTS.— 

‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of funds apportioned under subsection (c)(1)(A) may conduct, in cooperation 

with the appropriate metropolitan planning organization, an 

areawide solicitation for applications for grants under this section. 

‘‘(2) STATEWIDE SOLICITATIONS.—A recipient of funds apportioned under subparagraph (B) or (C) of subsection (c)(1) 

may conduct a statewide solicitation for applications for grants 

under this section. 

‘‘(3) APPLICATION.—If the recipient elects to engage in a 

competitive process, a recipient or subrecipient seeking to receive 

a grant from funds apportioned under subsection (c) shall submit to the recipient making the election an application in such 

form and in accordance with such requirements as the recipient 

making the election shall establish. 

‘‘(g) TRANSFERS OF FACILITIES AND EQUIPMENT.—A recipient 

may transfer a facility or equipment acquired using a grant under 

this section to any other recipient eligible to receive assistance under 

this chapter, if— 

‘‘(1) the recipient in possession of the facility or equipment 

consents to the transfer; and 

‘‘(2) the facility or equipment will continue to be used as required under this section. 

‘‘(h) PERFORMANCE MEASURES.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date of 

enactment of the Federal Public Transportation Act of 2012, the 

Secretary shall submit a report to the Committee on Banking, 

Housing, and Urban Affairs of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives making recommendations on the establishment of performance measures for grants under this section. Such report 

shall be developed in consultation with national nonprofit organizations that provide technical assistance and advocacy on 

issues related to transportation services for seniors and individuals with disabilities. 


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‘‘(2) MEASURES.—The performance measures to be considered in the report under paragraph (1) shall require the collection of quantitative and qualitative information, as available, 

concerning— 

‘‘(A) modifications to the geographic coverage of transportation service, the quality of transportation service, or 

service times that increase the availability of transportation 

services for seniors and individuals with disabilities; 

‘‘(B) ridership; 

‘‘(C) accessibility improvements; and 

‘‘(D) other measures, as the Secretary determines is appropriate.’’. 

SEC. 20010. FORMULA GRANTS FOR RURAL AREAS. 

Section 5311 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5311. Formula grants for rural areas 

‘‘(a) DEFINITIONS.—As used in this section, the following definitions shall apply: 

‘‘(1) RECIPIENT.—The term ‘recipient’ means a State or Indian tribe that receives a Federal transit program grant directly 

from the Government. 

‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ means a State 

or local governmental authority, a nonprofit organization, or an 

operator of public transportation or intercity bus service that receives Federal transit program grant funds indirectly through 

a recipient. 

‘‘(b) GENERAL AUTHORITY.— 

‘‘(1) GRANTS AUTHORIZED.—Except as provided by paragraph (2), the Secretary may award grants under this section 

to recipients located in rural areas for— 

‘‘(A) planning, provided that a grant under this section 

for planning activities shall be in addition to funding 

awarded to a State under section 5305 for planning activities that are directed specifically at the needs of rural areas 

in the State; 

‘‘(B) public transportation capital projects; 

‘‘(C) operating costs of equipment and facilities for use 

in public transportation; 

‘‘(D) job access and reverse commute projects; and 

‘‘(E) the acquisition of public transportation services, 

including service agreements with private providers of public transportation service. 

‘‘(2) STATE PROGRAM.— 

‘‘(A) IN GENERAL.—A project eligible for a grant under 

this section shall be included in a State program for public 

transportation service projects, including agreements with 

private providers of public transportation service. 

‘‘(B) SUBMISSION TO SECRETARY.—Each State shall 

submit to the Secretary annually the program described in 

subparagraph (A). 

‘‘(C) APPROVAL.—The Secretary may not approve the 

program unless the Secretary determines that— 


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‘‘(i) the program provides a fair distribution of 

amounts in the State, including Indian reservations; 

and 

‘‘(ii) the program provides the maximum feasible 

coordination of public transportation service assisted 

under this section with transportation service assisted 

by other Federal sources. 

‘‘(3) RURAL TRANSPORTATION ASSISTANCE PROGRAM.— ‘‘(A) IN GENERAL.—The Secretary shall carry out a 

rural transportation assistance program in rural areas. 

‘‘(B) GRANTS AND CONTRACTS.—In carrying out this 

paragraph, the Secretary may use not more than 2 percent 

of the amount made available under section 5338(a)(2)(E) 

to make grants and contracts for transportation research, 

technical assistance, training, and related support services 

in rural areas. 

‘‘(C) PROJECTS OF A NATIONAL SCOPE.—Not more than 

15 percent of the amounts available under subparagraph 

(B) may be used by the Secretary to carry out competitively 

selected projects of a national scope, with the remaining 

balance provided to the States. 

‘‘(4) DATA COLLECTION.—Each recipient under this section 

shall submit an annual report to the Secretary containing information on capital investment, operations, and service provided 

with funds received under this section, including— 

‘‘(A) total annual revenue; 

‘‘(B) sources of revenue; 

‘‘(C) total annual operating costs; 

‘‘(D) total annual capital costs; 

‘‘(E) fleet size and type, and related facilities; 

‘‘(F) vehicle revenue miles; and 

‘‘(G) ridership. 

‘‘(c) APPORTIONMENTS.— ‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RESERVATIONS.— 

Of the amounts made available or appropriated for each fiscal 

year pursuant to section 5338(a)(2)(E) to carry out this paragraph, the following amounts shall be apportioned each fiscal 

year for grants to Indian tribes for any purpose eligible under 

this section, under such terms and conditions as may be established by the Secretary: 

‘‘(A) $5,000,000 shall be distributed on a competitive 

basis by the Secretary. 

‘‘(B) $25,000,000 shall be apportioned as formula 

grants, as provided in subsection (j). 

‘‘(2) APPALACHIAN DEVELOPMENT PUBLIC TRANSPORTATION

ASSISTANCE PROGRAM.— 

‘‘(A) DEFINITIONS.—In this paragraph— 

‘‘(i) the term ‘Appalachian region’ has the same 

meaning as in section 14102 of title 40; and 

‘‘(ii) the term ‘eligible recipient’ means a State that 

participates in a program established under subtitle IV 

of title 40. 

‘‘(B) IN GENERAL.—The Secretary shall carry out a public transportation assistance program in the Appalachian 

region. 


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‘‘(C) APPORTIONMENT.—Of amounts made available or 

appropriated for each fiscal year under section 

5338(a)(2)(E) to carry out this paragraph, the Secretary 

shall apportion funds to eligible recipients for any purpose 

eligible under this section, based on the guidelines established under section 9.5(b) of the Appalachian Regional 

Commission Code. 

‘‘(D) SPECIAL RULE.—An eligible recipient may use 

amounts that cannot be used for operating expenses under 

this paragraph for a highway project if— 

‘‘(i) that use is approved, in writing, by the eligible 

recipient after appropriate notice and an opportunity 

for comment and appeal are provided to affected public 

transportation providers; and 

‘‘(ii) the eligible recipient, in approving the use of 

amounts under this subparagraph, determines that the 

local transit needs are being addressed. 

‘‘(3) REMAINING AMOUNTS.— ‘‘(A) IN GENERAL.—The amounts made available or appropriated for each fiscal year pursuant to section 

5338(a)(2)(E) that are not apportioned under paragraph (1) 

or (2) shall be apportioned in accordance with this paragraph. 

‘‘(B) APPORTIONMENT BASED ON LAND AREA AND POPU- LATION IN NONURBANIZED AREAS.— ‘‘(i) IN GENERAL.—83.15 percent of the amount described in subparagraph (A) shall be apportioned to 

the States in accordance with this subparagraph. 

‘‘(ii) LAND AREA.— 

‘‘(I) IN GENERAL.—Subject to subclause (II), 

each State shall receive an amount that is equal to 

20 percent of the amount apportioned under clause 

(i), multiplied by the ratio of the land area in 

rural areas in that State and divided by the land 

area in all rural areas in the United States, as 

shown by the most recent decennial census of population. 

‘‘(II) MAXIMUM APPORTIONMENT.—No State 

shall receive more than 5 percent of the amount 

apportioned under subclause (I). 

‘‘(iii) POPULATION.—Each State shall receive an 

amount equal to 80 percent of the amount apportioned 

under clause (i), multiplied by the ratio of the population of rural areas in that State and divided by the 

population of all rural areas in the United States, as 

shown by the most recent decennial census of population. 

‘‘(C) APPORTIONMENT BASED ON LAND AREA, VEHICLE

REVENUE MILES, AND LOW-INCOME INDIVIDUALS IN NON- URBANIZED AREAS.— ‘‘(i) IN GENERAL.—16.85 percent of the amount described in subparagraph (A) shall be apportioned to 

the States in accordance with this subparagraph. 

‘‘(ii) LAND AREA.—Subject to clause (v), each State 

shall receive an amount that is equal to 29.68 percent 


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of the amount apportioned under clause (i), multiplied 

by the ratio of the land area in rural areas in that 

State and divided by the land area in all rural areas 

in the United States, as shown by the most recent decennial census of population. 

‘‘(iii) VEHICLE REVENUE MILES.—Subject to clause 

(v), each State shall receive an amount that is equal to 

29.68 percent of the amount apportioned under clause 

(i), multiplied by the ratio of vehicle revenue miles in 

rural areas in that State and divided by the vehicle 

revenue miles in all rural areas in the United States, 

as determined by national transit database reporting. 

‘‘(iv) LOW-INCOME INDIVIDUALS.—Each State shall 

receive an amount that is equal to 40.64 percent of the 

amount apportioned under clause (i), multiplied by the 

ratio of low-income individuals in rural areas in that 

State and divided by the number of low-income individuals in all rural areas in the United States, as 

shown by the Bureau of the Census. 

‘‘(v) MAXIMUM APPORTIONMENT.—No State shall 

receive— 

‘‘(I) more than 5 percent of the amount apportioned under clause (ii); or 

‘‘(II) more than 5 percent of the amount apportioned under clause (iii). 

‘‘(d) USE FOR LOCAL TRANSPORTATION SERVICE.—A State may 

use an amount apportioned under this section for a project included 

in a program under subsection (b) of this section and eligible for assistance under this chapter if the project will provide local transportation service, as defined by the Secretary of Transportation, in a 

rural area. 

‘‘(e) USE FOR ADMINISTRATION, PLANNING, AND TECHNICAL ASSISTANCE.—The Secretary may allow a State to use not more than 

10 percent of the amount apportioned under this section to administer this section and provide technical assistance to a subrecipient, 

including project planning, program and management development, 

coordination of public transportation programs, and research the 

State considers appropriate to promote effective delivery of public 

transportation to a rural area. 

‘‘(f) INTERCITY BUS TRANSPORTATION.— 

‘‘(1) IN GENERAL.—A State shall expend at least 15 percent 

of the amount made available in each fiscal year to carry out 

a program to develop and support intercity bus transportation. 

Eligible activities under the program include— 

‘‘(A) planning and marketing for intercity bus transportation; 

‘‘(B) capital grants for intercity bus facilities; 

‘‘(C) joint-use facilities; 

‘‘(D) operating grants through purchase-of-service 

agreements, user-side subsidies, and demonstration 

projects; and 

‘‘(E) coordinating rural connections between small public transportation operations and intercity bus carriers. 

‘‘(2) CERTIFICATION.—A State does not have to comply with 

paragraph (1) of this subsection in a fiscal year in which the 


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Governor of the State certifies to the Secretary, after consultation with affected intercity bus service providers, that the intercity bus service needs of the State are being met adequately. 

‘‘(g) GOVERNMENT SHARE OF COSTS.— 

‘‘(1) CAPITAL PROJECTS.— 

‘‘(A) IN GENERAL.—Except as provided by subparagraph (B), a grant awarded under this section for a capital 

project or project administrative expenses shall be for 80 

percent of the net costs of the project, as determined by the 

Secretary. 

‘‘(B) EXCEPTION.—A State described in section 120(b) of 

title 23 shall receive a Government share of the net costs in 

accordance with the formula under that section. 

‘‘(2) OPERATING ASSISTANCE.— 

‘‘(A) IN GENERAL.—Except as provided by subparagraph (B), a grant made under this section for operating 

assistance may not exceed 50 percent of the net operating 

costs of the project, as determined by the Secretary. 

‘‘(B) EXCEPTION.—A State described in section 120(b) of 

title 23 shall receive a Government share of the net operating costs equal to 62.5 percent of the Government share 

provided for under paragraph (1)(B). 

‘‘(3) REMAINDER.—The remainder of net project costs— 

‘‘(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a 

service agreement with a State or local social service agency 

or a private social service organization, or new capital; 

‘‘(B) may be derived from amounts appropriated or otherwise made available to a department or agency of the 

Government (other than the Department of Transportation) 

that are eligible to be expended for transportation; 

‘‘(C) notwithstanding subparagraph (B), may be derived from amounts made available to carry out the Federal lands highway program established by section 204 of 

title 23; and 

‘‘(D) in the case of an intercity bus project that includes 

both feeder service and an unsubsidized segment of intercity bus service to which the feeder service connects, may be 

derived from the costs of a private operator for the unsubsidized segment of intercity bus service as an in-kind match 

for the operating costs of connecting rural intercity bus 

feeder service funded under subsection (f), if the private operator agrees in writing to the use of the costs of the private 

operator for the unsubsidized segment of intercity bus service as an in-kind match. 

‘‘(4) USE OF CERTAIN FUNDS.—For purposes of paragraph 

(3)(B), the prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security 

Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or 

State funds to be used for transportation purposes. 

‘‘(5) LIMITATION ON OPERATING ASSISTANCE.—A State carrying out a program of operating assistance under this section 

may not limit the level or extent of use of the Government grant 

for the payment of operating expenses. 


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‘‘(h) TRANSFER OF FACILITIES AND EQUIPMENT.—With the consent of the recipient currently having a facility or equipment acquired with assistance under this section, a State may transfer the 

facility or equipment to any recipient eligible to receive assistance 

under this chapter if the facility or equipment will continue to be 

used as required under this section. 

‘‘(i) RELATIONSHIP TO OTHER LAWS.— ‘‘(1) IN GENERAL.—Section 5333(b) applies to this section if 

the Secretary of Labor utilizes a special warranty that provides 

a fair and equitable arrangement to protect the interests of employees. 

‘‘(2) RULE OF CONSTRUCTION.—This subsection does not affect or discharge a responsibility of the Secretary of Transportation under a law of the United States. 

‘‘(j) FORMULA GRANTS FOR PUBLIC TRANSPORTATION ON INDIAN

RESERVATIONS.— 

‘‘(1) APPORTIONMENT.— 

‘‘(A) IN GENERAL.—Of the amounts described in subsection (c)(1)(B)— 

‘‘(i) 50 percent of the total amount shall be apportioned so that each Indian tribe providing public transportation service shall receive an amount equal to the 

total amount apportioned under this clause multiplied 

by the ratio of the number of vehicle revenue miles provided by an Indian tribe divided by the total number 

of vehicle revenue miles provided by all Indian tribes, 

as reported to the Secretary; 

‘‘(ii) 25 percent of the total amount shall be apportioned equally among each Indian tribe providing at 

least 200,000 vehicle revenue miles of public transportation service annually, as reported to the Secretary; 

and 

‘‘(iii) 25 percent of the total amount shall be apportioned among each Indian tribe providing public transportation on tribal lands (as defined by the Bureau of 

the Census) on which more than 1,000 low-income individuals reside (as determined by the Bureau of the 

Census) so that each Indian tribe shall receive an 

amount equal to the total amount apportioned under 

this clause multiplied by the ratio of the number of 

low-income individuals residing on an Indian tribe’s 

lands divided by the total number of low-income individuals on tribal lands on which more than 1,000 lowincome individuals reside. 

‘‘(B) LIMITATION.—No recipient shall receive more than 

$300,000 of the amounts apportioned under subparagraph 

(A)(iii) in a fiscal year. 

‘‘(C) REMAINING AMOUNTS.—Of the amounts made 

available under subparagraph (A)(iii), any amounts not apportioned under that subparagraph shall be allocated 

among Indian tribes receiving less than $300,000 in a fiscal year according to the formula specified in that clause. 

‘‘(D) LOW-INCOME INDIVIDUALS.—For purposes of subparagraph (A)(iii), the term ‘low-income individual’ means 

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cent of the poverty line, as that term is defined in section 

673(2) of the Community Services Block Grant Act (42 

U.S.C. 9902(2)), including any revision required by that 

section, for a family of the size involved. 

‘‘(2) NON-TRIBAL SERVICE PROVIDERS.—A recipient that is 

an Indian tribe may use funds apportioned under this subsection to finance public transportation services provided by a 

non-tribal provider of public transportation that connects residents of tribal lands with surrounding communities, improves 

access to employment or healthcare, or otherwise addresses the 

mobility needs of tribal members.’’. 

SEC. 20011. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT PROJECTS. 

Section 5312 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5312. Research, development, demonstration, and deployment projects 

‘‘(a) RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT PROJECTS.— 

‘‘(1) IN GENERAL.—The Secretary may make grants and 

enter into contracts, cooperative agreements, and other agreements for research, development, demonstration, and deployment projects, and evaluation of research and technology of national significance to public transportation, that the Secretary 

determines will improve public transportation. 

‘‘(2) AGREEMENTS.—In order to carry out paragraph (1), the 

Secretary may make grants to and enter into contracts, cooperative agreements, and other agreements with— 

‘‘(A) departments, agencies, and instrumentalities of 

the Government, including Federal laboratories; 

‘‘(B) State and local governmental entities; 

‘‘(C) providers of public transportation; 

‘‘(D) private or non-profit organizations; 

‘‘(E) institutions of higher education; and 

‘‘(F) technical and community colleges. 

‘‘(3) APPLICATION.— 

‘‘(A) IN GENERAL.—To receive a grant, contract, cooperative agreement, or other agreement under this section, an 

entity described in paragraph (2) shall submit an application to the Secretary. 

‘‘(B) FORM AND CONTENTS.—An application under subparagraph (A) shall be in such form and contain such information as the Secretary may require, including— 

‘‘(i) a statement of purpose detailing the need being 

addressed; 

‘‘(ii) the short- and long-term goals of the project, 

including opportunities for future innovation and development, the potential for deployment, and benefits to 

riders and public transportation; and 

‘‘(iii) the short- and long-term funding requirements to complete the project and any future objectives 

of the project. 

‘‘(b) RESEARCH.— 


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‘‘(1) IN GENERAL.—The Secretary may make a grant to or 

enter into a contract, cooperative agreement, or other agreement 

under this section with an entity described in subsection (a)(2) 

to carry out a public transportation research project that has as 

its ultimate goal the development and deployment of new and 

innovative ideas, practices, and approaches. 

‘‘(2) PROJECT ELIGIBILITY.—A public transportation research project that receives assistance under paragraph (1) 

shall focus on— 

‘‘(A) providing more effective and efficient public transportation service, including services to— 

‘‘(i) seniors; 

‘‘(ii) individuals with disabilities; and 

‘‘(iii) low-income individuals; 

‘‘(B) mobility management and improvements and travel management systems; 

‘‘(C) data and communication system advancements; 

‘‘(D) system capacity, including— 

‘‘(i) train control; 

‘‘(ii) capacity improvements; and 

‘‘(iii) performance management; 

‘‘(E) capital and operating efficiencies; 

‘‘(F) planning and forecasting modeling and simulation; 

‘‘(G) advanced vehicle design; 

‘‘(H) advancements in vehicle technology; 

‘‘(I) asset maintenance and repair systems advancement; 

‘‘(J) construction and project management; 

‘‘(K) alternative fuels; 

‘‘(L) the environment and energy efficiency; 

‘‘(M) safety improvements; or 

‘‘(N) any other area that the Secretary determines is 

important to advance the interests of public transportation. 

‘‘(c) INNOVATION AND DEVELOPMENT.— ‘‘(1) IN GENERAL.—The Secretary may make a grant to or 

enter into a contract, cooperative agreement, or other agreement 

under this section with an entity described in subsection (a)(2) 

to carry out a public transportation innovation and development project that seeks to improve public transportation systems nationwide in order to provide more efficient and effective 

delivery of public transportation services, including through 

technology and technological capacity improvements. 

‘‘(2) PROJECT ELIGIBILITY.—A public transportation innovation and development project that receives assistance under 

paragraph (1) shall focus on— 

‘‘(A) the development of public transportation research 

projects that received assistance under subsection (b) that 

the Secretary determines were successful; 

‘‘(B) planning and forecasting modeling and simulation; 

‘‘(C) capital and operating efficiencies; 

‘‘(D) advanced vehicle design; 

‘‘(E) advancements in vehicle technology; 

‘‘(F) the environment and energy efficiency; 


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‘‘(G) system capacity, including train control and capacity improvements; or 

‘‘(H) any other area that the Secretary determines is 

important to advance the interests of public transportation. 

‘‘(d) DEMONSTRATION, DEPLOYMENT, AND EVALUATION.— ‘‘(1) IN GENERAL.—The Secretary may, under terms and 

conditions that the Secretary prescribes, make a grant to or 

enter into a contract, cooperative agreement, or other agreement 

with an entity described in paragraph (2) to promote the early 

deployment and demonstration of innovation in public transportation that has broad applicability. 

‘‘(2) PARTICIPANTS.—An entity described in this paragraph 

is— 

‘‘(A) an entity described in subsection (a)(2); or 

‘‘(B) a consortium of entities described in subsection 

(a)(2), including a provider of public transportation, that 

will share the costs, risks, and rewards of early deployment 

and demonstration of innovation. 

‘‘(3) PROJECT ELIGIBILITY.—A project that receives assistance under paragraph (1) shall seek to build on successful research, innovation, and development efforts to facilitate— 

‘‘(A) the deployment of research and technology development resulting from private efforts or Federally funded 

efforts; and 

‘‘(B) the implementation of research and technology development to advance the interests of public transportation. 

‘‘(4) EVALUATION.—Not later than 2 years after the date on 

which a project receives assistance under paragraph (1), the 

Secretary shall conduct a comprehensive evaluation of the success or failure of the projects funded under this subsection and 

any plan for broad-based implementation of the innovation promoted by successful projects. 

‘‘(5) LOW OR NO EMISSION VEHICLE DEPLOYMENT.— ‘‘(A) DEFINITIONS.—In this paragraph, the following 

definitions shall apply: 

‘‘(i) ELIGIBLE AREA.—The term ‘eligible area’ means 

an area that is— 

‘‘(I) designated as a nonattainment area for 

ozone or carbon monoxide under section 107(d) of 

the Clean Air Act (42 U.S.C. 7407(d)); or 

‘‘(II) a maintenance area, as defined in section 

5303, for ozone or carbon monoxide. 

‘‘(ii) ELIGIBLE PROJECT.—The term ‘eligible project’ 

means a project or program of projects in an eligible 

area for— 

‘‘(I) acquiring or leasing low or no emission vehicles; 

‘‘(II) constructing or leasing facilities and related equipment for low or no emission vehicles; 

‘‘(III) constructing new public transportation 

facilities to accommodate low or no emission vehicles; or 

‘‘(IV) rehabilitating or improving existing public transportation facilities to accommodate low or 

no emission vehicles. 


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‘‘(iii) DIRECT CARBON EMISSIONS.—The term ‘direct 

carbon emissions’ means the quantity of direct greenhouse gas emissions from a vehicle, as determined by 

the Administrator of the Environmental Protection 

Agency. 

‘‘(iv) LOW OR NO EMISSION BUS.—The term ‘low or 

no emission bus’ means a bus that is a low or no emission vehicle. 

‘‘(v) LOW OR NO EMISSION VEHICLE.—The term ‘low 

or no emission vehicle’ means— 

‘‘(I) a passenger vehicle used to provide public 

transportation that the Administrator of the Environmental Protection Agency has certified sufficiently reduces energy consumption or reduces 

harmful emissions, including direct carbon emissions, when compared to a comparable standard 

vehicle; or 

‘‘(II) a zero emission bus used to provide public 

transportation. 

‘‘(vi) RECIPIENT.—The term ‘recipient’ means— 

‘‘(I) for an eligible area that is an urbanized 

area with a population of fewer than 200,000 individuals, as determined by the Bureau of the Census, the State in which the eligible area is located; 

and 

‘‘(II) for an eligible area not described in subparagraph (A), the designated recipient for the eligible area. 

‘‘(vii) ZERO EMISSION BUS.—The term ‘zero emission bus’ means a low or no emission bus that produces 

no carbon or particulate matter. 

‘‘(B) AUTHORITY.—The Secretary may make grants to 

recipients to finance eligible projects under this paragraph. 

‘‘(C) GRANT REQUIREMENTS.— 

‘‘(i) IN GENERAL.—A grant under this paragraph 

shall be subject to the requirements of section 5307. 

‘‘(ii) GOVERNMENT SHARE OF COSTS FOR CERTAIN

PROJECTS.—Section 5323(j) applies to projects carried 

out under this paragraph, unless the grant recipient requests a lower grant percentage. 

‘‘(iii) COMBINATION OF FUNDING SOURCES.— 

‘‘(I) COMBINATION PERMITTED.—A project carried out under this paragraph may receive funding 

under section 5307, or any other provision of law. 

‘‘(II) GOVERNMENT SHARE.—Nothing in this 

clause may be construed to alter the Government 

share required under this section, section 5307, or 

any other provision of law. 

‘‘(D) MINIMUM AMOUNTS.—Of amounts made available 

by or appropriated under section 5338(b) in each fiscal year 

to carry out this paragraph— 

‘‘(i) not less than 65 percent shall be made available to fund eligible projects relating to low or no emission buses; and 


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‘‘(ii) not less than 10 percent shall be made available for eligible projects relating to facilities and related equipment for low or no emission buses. 

‘‘(E) COMPETITIVE PROCESS.—The Secretary shall solicit grant applications and make grants for eligible 

projects on a competitive basis. 

‘‘(F) PRIORITY CONSIDERATION.—In making grants 

under this paragraph, the Secretary shall give priority to 

projects relating to low or no emission buses that make 

greater reductions in energy consumption and harmful 

emissions, including direct carbon emissions, than comparable standard buses or other low or no emission buses. 

‘‘(G) AVAILABILITY OF FUNDS.—Any amounts made 

available or appropriated to carry out this paragraph— 

‘‘(i) shall remain available to an eligible project for 

2 years after the fiscal year for which the amount is 

made available or appropriated; and 

‘‘(ii) that remain unobligated at the end of the period described in clause (i) shall be added to the 

amount made available to an eligible project in the following fiscal year. 

‘‘(e) ANNUAL REPORT ON RESEARCH.—Not later than the first 

Monday in February of each year, the Secretary shall submit to the 

Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate and the Committee on 

Transportation and Infrastructure, the Committee on Science, 

Space, and Technology, and the Committee on Appropriations of the 

House of Representatives a report that includes— 

‘‘(1) a description of each project that received assistance 

under this section during the preceding fiscal year; 

‘‘(2) an evaluation of each project described in paragraph 

(1), including any evaluation conducted under subsection (d)(4) 

for the preceding fiscal year; and 

‘‘(3) a proposal for allocations of amounts for assistance 

under this section for the subsequent fiscal year. 

‘‘(f) GOVERNMENT SHARE OF COSTS.— ‘‘(1) IN GENERAL.—The Government share of the cost of a 

project carried out under this section shall not exceed 80 percent. 

‘‘(2) NON-GOVERNMENT SHARE.—The non-Government share 

of the cost of a project carried out under this section may be derived from in-kind contributions. 

‘‘(3) FINANCIAL BENEFIT.—If the Secretary determines that 

there would be a clear and direct financial benefit to an entity 

under a grant, contract, cooperative agreement, or other agreement under this section, the Secretary shall establish a Government share of the costs of the project to be carried out under 

the grant, contract, cooperative agreement, or other agreement 

that is consistent with the benefit.’’. 

SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT. 

Section 5314 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5314. Technical assistance and standards development 

‘‘(a) TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.— 


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‘‘(1) IN GENERAL.—The Secretary may make grants and 

enter into contracts, cooperative agreements, and other agreements (including agreements with departments, agencies, and 

instrumentalities of the Government) to carry out activities that 

the Secretary determines will assist recipients of assistance 

under this chapter to— 

‘‘(A) more effectively and efficiently provide public 

transportation service; 

‘‘(B) administer funds received under this chapter in 

compliance with Federal law; and 

‘‘(C) improve public transportation. 

‘‘(2) ELIGIBLE ACTIVITIES.—The activities carried out under 

paragraph (1) may include— 

‘‘(A) technical assistance; and 

‘‘(B) the development of voluntary and consensus-based 

standards and best practices by the public transportation 

industry, including standards and best practices for safety, 

fare collection, Intelligent Transportation Systems, accessibility, procurement, security, asset management to maintain a state of good repair, operations, maintenance, vehicle 

propulsion, communications, and vehicle electronics. 

‘‘(b) TECHNICAL ASSISTANCE.—The Secretary, through a competitive bid process, may enter into contracts, cooperative agreements, and other agreements with national nonprofit organizations 

that have the appropriate demonstrated capacity to provide public 

transportation-related technical assistance under this section. The 

Secretary may enter into such contracts, cooperative agreements, 

and other agreements to assist providers of public transportation 

to— 

‘‘(1) comply with the Americans with Disabilities Act of 

1990 (42 U.S.C. 12101 et seq.) through technical assistance, 

demonstration programs, research, public education, and other 

activities related to complying with such Act; 

‘‘(2) comply with human services transportation coordination requirements and to enhance the coordination of Federal 

resources for human services transportation with those of the 

Department of Transportation through technical assistance, 

training, and support services related to complying with such 

requirements; 

‘‘(3) meet the transportation needs of elderly individuals; 

‘‘(4) increase transit ridership in coordination with metropolitan planning organizations and other entities through development around public transportation stations through technical assistance and the development of tools, guidance, and 

analysis related to market-based development around transit 

stations; 

‘‘(5) address transportation equity with regard to the effect 

that transportation planning, investment and operations have 

for low-income and minority individuals; and 

‘‘(6) any other technical assistance activity that the Secretary determines is necessary to advance the interests of public 

transportation. 

‘‘(c) ANNUAL REPORT ON TECHNICAL ASSISTANCE.—Not later 

than the first Monday in February of each year, the Secretary shall 

submit to the Committee on Banking, Housing, and Urban Affairs 


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and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure, the Committee on 

Science, Space, and Technology, and the Committee on Appropriations of the House of Representatives a report that includes— 

‘‘(1) a description of each project that received assistance 

under this section during the preceding fiscal year; 

‘‘(2) an evaluation of the activities carried out by each organization that received assistance under this section during the 

preceding fiscal year; and 

‘‘(3) a proposal for allocations of amounts for assistance 

under this section for the subsequent fiscal year. 

‘‘(d) GOVERNMENT SHARE OF COSTS.— ‘‘(1) IN GENERAL.—The Government share of the cost of an 

activity carried out using a grant under this section may not exceed 80 percent. 

‘‘(2) NON-GOVERNMENT SHARE.—The non-Government share 

of the cost of an activity carried out using a grant under this 

section may be derived from in-kind contributions.’’. 

SEC. 20013. PRIVATE SECTOR PARTICIPATION. 

(a) IN GENERAL.—Section 5315 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5315. Private sector participation 

‘‘(a) GENERAL PURPOSES.—In the interest of fulfilling the general purposes of this chapter under section 5301(b), the Secretary 

shall— 

‘‘(1) better coordinate public and private sector-provided 

public transportation services; 

‘‘(2) promote more effective utilization of private sector expertise, financing, and operational capacity to deliver costly and 

complex new fixed guideway capital projects; and 

‘‘(3) promote transparency and public understanding of 

public-private partnerships affecting public transportation. 

‘‘(b) ACTIONS TO PROMOTE BETTER COORDINATION BETWEEN

PUBLIC AND PRIVATE SECTOR PROVIDERS OF PUBLIC TRANSPOR- TATION.—The Secretary shall— 

‘‘(1) provide technical assistance to recipients of Federal 

transit grant assistance, at the request of a recipient, on practices and methods to best utilize private providers of public 

transportation; and 

‘‘(2) educate recipients of Federal transit grant assistance 

on laws and regulations under this chapter that impact private 

providers of public transportation. 

‘‘(c) ACTIONS TO PROVIDE TECHNICAL ASSISTANCE FOR ALTERNATIVE PROJECT DELIVERY METHODS.—Upon request by a sponsor 

of a new fixed guideway capital project, the Secretary shall— 

‘‘(1) identify best practices for public-private partnerships 

models in the United States and in other countries; 

‘‘(2) develop standard public-private partnership transaction model contracts; and 

‘‘(3) perform financial assessments that include the calculation of public and private benefits of a proposed public-private 

partnership transaction.’’. 

(b) PUBLIC-PRIVATE PARTNERSHIP PROCEDURES AND APPROACHES.— 


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(1) IDENTIFY IMPEDIMENTS.—The Secretary shall— 

(A) except as provided in paragraph (6), identify any 

provisions of chapter 53 of title 49, United States Code, and 

any regulations or practices thereunder, that impede greater use of public-private partnerships and private investment in public transportation capital projects; and 

(B) develop and implement on a project basis procedures and approaches that— 

(i) address such impediments in a manner similar 

to the Special Experimental Project Number 15 of the 

Federal Highway Administration (commonly referred 

to as ‘‘SEP-15’’); and 

(ii) protect the public interest and any public investment in public transportation capital projects that 

involve public-private partnerships or private investment in public transportation capital projects. 

(2) TRANSPARENCY.—The Secretary shall develop guidance 

to promote greater transparency and public access to public-private partnership agreements involving recipients of Federal assistance under chapter 53 of title 49, United States Code, including— 

(A) any conflict of interest involving any party involved 

in the public-private partnership; 

(B) tax and financing aspects related to a public-private partnership agreement; 

(C) changes in the workforce and wages, benefits, or 

rules as a result of a public-private partnership; 

(D) estimates of the revenue or savings the public-private partnership will produce for the private entity and 

public entity; 

(E) any impacts on other developments and transportation modes as a result of non-compete clauses contained 

in public-private partnership agreements; and 

(F) any other issues the Secretary believes will increase 

transparency of public-private partnership agreements and 

protect the public interest. 

(3) ASSESSMENT.—In developing and implementing the 

guidance under paragraph (2), the Secretary shall encourage 

project sponsors to conduct assessments to determine whether 

use of a public-private partnership represents a better public 

and financial benefit than a similar transaction using public 

funding or public project delivery. 

(4) REPORT.—Not later than 4 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the status of the procedures, approaches, and guidance 

developed and implemented under paragraphs (1) and (2). 

(5) RULEMAKING.—Not later than 1 year after the date of 

enactment of this Act, the Secretary shall issue rules to carry 

out the procedures and approaches developed under paragraph 

(1). 

(6) RULE OF CONSTRUCTION.—Nothing in this subsection 

may be construed to allow the Secretary to waive any requirement under— 

(A) section 5333 of title 49, United States Code; 


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(B) the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.); or 

(C) any other provision of Federal law. 

(c) CONTRACTING OUT STUDY.— 

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United 

States shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee 

on Banking, Housing, and Urban Affairs of the Senate a comprehensive report on the effect of contracting out public transportation operations and administrative functions on cost, 

availability and level of service, efficiency, and quality of service. 

(2) CONSIDERATIONS.—In developing the report, the Comptroller General shall consider— 

(A) the number of grant recipients that have contracted 

out services and the types of public transportation services 

that are performed under contract, including paratransit 

service, fixed route bus service, commuter rail operations, 

and administrative functions; 

(B) the size of the populations served by such grant recipients; 

(C) the basis for decisions regarding contracting out 

such services; 

(D) comparative costs of providing service under contract to providing the same service through public transit 

agency employees, using to the greatest extent possible a 

standard cost allocation model; 

(E) the extent of unionization among privately contracted employees; 

(F) the impact to wages and benefits of employees when 

publicly provided public transportation services are contracted out to a private for-profit entity; 

(G) the level of transparency and public access to 

agreements and contracts related to contracted out public 

transportation services; 

(H) the extent of Federal law, regulations and guidance 

prohibiting any conflicts of interest for contractor employees 

and businesses; 

(I) the extent to which grant recipients evaluate contracted out services before selecting them and the extent to 

which grant recipients conduct oversight of those services; 

and 

(J) barriers to contracting out public transportation operations and administrative functions. 

(d) GUIDANCE ON DOCUMENTING COMPLIANCE.—Not later than 

1 year after the date of enactment of this Act, the Secretary shall 

publish in the Federal Register policy guidance regarding how to 

best document compliance by recipients of Federal assistance under 

chapter 53 of title 49, United States Code, with the requirements regarding private enterprise participation in public transportation 

planning and transportation improvement programs under sections 

5303(i)(6), 5306(a), and 5307(c) of such title 49. 


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SEC. 20014. BUS TESTING FACILITIES. 

Section 5318 of title 49, United States Code, is amended by 

striking subsection (e) and inserting the following: 

‘‘(e) ACQUIRING NEW BUS MODELS.— ‘‘(1) IN GENERAL.—Amounts appropriated or otherwise 

made available under this chapter may be obligated or expended to acquire a new bus model only if— 

‘‘(A) a bus of that model has been tested at a facility 

authorized under subsection (a); and 

‘‘(B) the bus tested under subparagraph (A) met— 

‘‘(i) performance standards for maintainability, reliability, performance (including braking performance), 

structural integrity, fuel economy, emissions, and noise, 

as established by the Secretary by rule; and 

‘‘(ii) the minimum safety performance standards 

established by the Secretary pursuant to section 

5329(b). 

‘‘(2) BUS TEST ‘PASS/FAIL’ STANDARD.—Not later than 2 

years after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a final rule 

under subparagraph (B)(i). The final rule issued under paragraph (B)(i) shall include a bus model scoring system that results in a weighted, aggregate score that uses the testing categories under subsection (a) and considers the relative importance of each such testing category. The final rule issued under 

subparagraph (B)(i) shall establish a ‘pass/fail’ standard that 

uses the aggregate score described in the preceding sentence. 

Amounts appropriated or otherwise made available under this 

chapter may be obligated or expended to acquire a new bus 

model only if the new bus model has received a passing aggregate test score. The Secretary shall work with the bus testing facility, bus manufacturers, and transit agencies to develop the 

bus model scoring system under this paragraph. A passing aggregate test score under the rule issued under subparagraph 

(B)(i) indicates only that amounts appropriated or made available under this chapter may be obligated or expended to acquire 

a new bus model and shall not be interpreted as a warranty or 

guarantee that the new bus model will meet a purchaser’s specific requirements.’’. 

SEC. 20015. HUMAN RESOURCES AND TRAINING. 

Section 5322 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5322. Human resources and training 

‘‘(a) IN GENERAL.—The Secretary may undertake, or make 

grants and contracts for, programs that address human resource 

needs as they apply to public transportation activities. A program 

may include— 

‘‘(1) an employment training program; 

‘‘(2) an outreach program to increase minority and female 

employment in public transportation activities; 

‘‘(3) research on public transportation personnel and training needs; and 

‘‘(4) training and assistance for minority business opportunities. 


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‘‘(b) INNOVATIVE PUBLIC TRANSPORTATION WORKFORCE DEVEL- OPMENT PROGRAM.— ‘‘(1) PROGRAM ESTABLISHED.—The Secretary shall establish 

a competitive grant program to assist the development of innovative activities eligible for assistance under subsection (a). 

‘‘(2) SELECTION OF RECIPIENTS.—To the maximum extent 

feasible, the Secretary shall select recipients that— 

‘‘(A) are geographically diverse; 

‘‘(B) address the workforce and human resources needs 

of large public transportation providers; 

‘‘(C) address the workforce and human resources needs 

of small public transportation providers; 

‘‘(D) address the workforce and human resources needs 

of urban public transportation providers; 

‘‘(E) address the workforce and human resources needs 

of rural public transportation providers; 

‘‘(F) advance training related to maintenance of alternative energy, energy efficiency, or zero emission vehicles 

and facilities used in public transportation; 

‘‘(G) target areas with high rates of unemployment; and 

‘‘(H) address current or projected workforce shortages 

in areas that require technical expertise. 

‘‘(c) GOVERNMENT’S SHARE OF COSTS.—The Government share 

of the cost of a project carried out using a grant under subsection 

(a) or (b) shall be 50 percent. 

‘‘(d) NATIONAL TRANSIT INSTITUTE.— ‘‘(1) ESTABLISHMENT.—The Secretary shall establish a national transit institute and award grants to a public 4-year degree-granting institution of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 

1001(a)), in order to carry out the duties of the institute. 

‘‘(2) DUTIES.— 

‘‘(A) IN GENERAL.—In cooperation with the Federal 

Transit Administration, State transportation departments, 

public transportation authorities, and national and international entities, the institute established under paragraph 

(1) shall develop and conduct training and educational programs for Federal, State, and local transportation employees, United States citizens, and foreign nationals engaged 

or to be engaged in Government-aid public transportation 

work. 

‘‘(B) TRAINING AND EDUCATIONAL PROGRAMS.—The 

training and educational programs developed under subparagraph (A) may include courses in recent developments, 

techniques, and procedures related to— 

‘‘(i) intermodal and public transportation planning; 

‘‘(ii) management; 

‘‘(iii) environmental factors; 

‘‘(iv) acquisition and joint use rights-of-way; 

‘‘(v) engineering and architectural design; 

‘‘(vi) procurement strategies for public transportation systems; 

‘‘(vii) turnkey approaches to delivering public 

transportation systems; 


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‘‘(viii) new technologies; 

‘‘(ix) emission reduction technologies; 

‘‘(x) ways to make public transportation accessible 

to individuals with disabilities; 

‘‘(xi) construction, construction management, insurance, and risk management; 

‘‘(xii) maintenance; 

‘‘(xiii) contract administration; 

‘‘(xiv) inspection; 

‘‘(xv) innovative finance; 

‘‘(xvi) workplace safety; and 

‘‘(xvii) public transportation security. 

‘‘(3) PROVIDING EDUCATION AND TRAINING.—Education and 

training of Government, State, and local transportation employees under this subsection shall be provided— 

‘‘(A) by the Secretary at no cost to the States and local 

governments for subjects that are a Government program 

responsibility; or 

‘‘(B) when the education and training are paid under 

paragraph (4) of this subsection, by the State, with the approval of the Secretary, through grants and contracts with 

public and private agencies, other institutions, individuals, 

and the institute. 

‘‘(4) AVAILABILITY OF AMOUNTS.—Not more than .5 percent 

of the amounts made available for a fiscal year beginning after 

September 30, 1991, to a State or public transportation authority in the State to carry out sections 5307 and 5309 of this title 

is available for expenditure by the State and public transportation authorities in the State, with the approval of the Secretary, to pay not more than 80 percent of the cost of tuition 

and direct educational expenses related to educating and training State and local transportation employees under this subsection. 

‘‘(e) REPORT.—Not later than 2 years after the date of enactment 

of the Federal Public Transportation Act of 2012, the Secretary 

shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report concerning the 

measurable outcomes and impacts of the programs funded under 

subsections (a) and (b).’’. 

SEC. 20016. GENERAL PROVISIONS. 

Section 5323 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5323. General provisions 

‘‘(a) INTERESTS IN PROPERTY.— 

‘‘(1) IN GENERAL.—Financial assistance provided under this 

chapter to a State or a local governmental authority may be 

used to acquire an interest in, or to buy property of, a private 

company engaged in public transportation, for a capital project 

for property acquired from a private company engaged in public 

transportation after July 9, 1964, or to operate a public transportation facility or equipment in competition with, or in addition to, transportation service provided by an existing public 

transportation company, only if— 


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‘‘(A) the Secretary determines that such financial assistance is essential to a program of projects required under 

sections 5303, 5304, and 5306; 

‘‘(B) the Secretary determines that the program provides for the participation of private companies engaged in 

public transportation to the maximum extent feasible; and 

‘‘(C) just compensation under State or local law will be 

paid to the company for its franchise or property. 

‘‘(2) LIMITATION.—A governmental authority may not use financial assistance of the United States Government to acquire 

land, equipment, or a facility used in public transportation 

from another governmental authority in the same geographic 

area. 

‘‘(b) RELOCATION AND REAL PROPERTY REQUIREMENTS.—The 

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to financial assistance for capital projects under this chapter. 

‘‘(c) CONSIDERATION OF ECONOMIC, SOCIAL, AND ENVIRONMENTAL INTERESTS.— 

‘‘(1) COOPERATION AND CONSULTATION.—The Secretary 

shall cooperate and consult with the Secretary of the Interior 

and the Administrator of the Environmental Protection Agency 

on each project that may have a substantial impact on the environment. 

‘‘(2) COMPLIANCE WITH NEPA.—The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) shall apply 

to financial assistance for capital projects under this chapter. 

‘‘(d) CONDITION ON CHARTER BUS TRANSPORTATION SERVICE.— ‘‘(1) AGREEMENTS.—Financial assistance under this chapter 

may be used to buy or operate a bus only if the applicant, governmental authority, or publicly owned operator that receives 

the assistance agrees that, except as provided in the agreement, 

the governmental authority or an operator of public transportation for the governmental authority will not provide charter 

bus transportation service outside the urban area in which it 

provides regularly scheduled public transportation service. An 

agreement shall provide for a fair arrangement the Secretary of 

Transportation considers appropriate to ensure that the assistance will not enable a governmental authority or an operator 

for a governmental authority to foreclose a private operator 

from providing intercity charter bus service if the private operator can provide the service. 

‘‘(2) VIOLATIONS.— 

‘‘(A) INVESTIGATIONS.—On receiving a complaint about 

a violation of the agreement required under paragraph (1), 

the Secretary shall investigate and decide whether a violation has occurred. 

‘‘(B) ENFORCEMENT OF AGREEMENTS.—If the Secretary 

decides that a violation has occurred, the Secretary shall 

correct the violation under terms of the agreement. 

‘‘(C) ADDITIONAL REMEDIES.—In addition to any remedy specified in the agreement, the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary considers appropriate if 

the Secretary finds a pattern of violations of the agreement. 


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‘‘(e) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.— 

‘‘(1) USE AS LOCAL MATCHING FUNDS.—Notwithstanding 

any other provision of law, a recipient of assistance under section 5307, 5309, or 5337 may use the proceeds from the 

issuance of revenue bonds as part of the local matching funds 

for a capital project. 

‘‘(2) MAINTENANCE OF EFFORT.—The Secretary shall approve of the use of the proceeds from the issuance of revenue 

bonds for the remainder of the net project cost only if the Secretary finds that the aggregate amount of financial support for 

public transportation in the urbanized area provided by the 

State and affected local governmental authorities during the 

next 3 fiscal years, as programmed in the State transportation 

improvement program under section 5304, is not less than the 

aggregate amount provided by the State and affected local governmental authorities in the urbanized area during the preceding 3 fiscal years. 

‘‘(3) DEBT SERVICE RESERVE.—The Secretary may reimburse 

an eligible recipient for deposits of bond proceeds in a debt service reserve that the recipient establishes pursuant to section 

5302(3)(J) from amounts made available to the recipient under 

section 5309. 

‘‘(f) SCHOOLBUS TRANSPORTATION.— 

‘‘(1) AGREEMENTS.—Financial assistance under this chapter 

may be used for a capital project, or to operate public transportation equipment or a public transportation facility, only if the 

applicant agrees not to provide schoolbus transportation that 

exclusively transports students and school personnel in competition with a private schoolbus operator. This subsection does not 

apply— 

‘‘(A) to an applicant that operates a school system in 

the area to be served and a separate and exclusive schoolbus program for the school system; and 

‘‘(B) unless a private schoolbus operator can provide 

adequate transportation that complies with applicable safety standards at reasonable rates. 

‘‘(2) VIOLATIONS.—If the Secretary finds that an applicant, 

governmental authority, or publicly owned operator has violated the agreement required under paragraph (1), the Secretary shall bar a recipient or an operator from receiving Federal transit assistance in an amount the Secretary considers appropriate. 

‘‘(g) BUYING BUSES UNDER OTHER LAWS.—Subsections (d) and 

(f) of this section apply to financial assistance to buy a bus under 

sections 133 and 142 of title 23. 

‘‘(h) GRANT AND LOAN PROHIBITIONS.—A grant or loan may not 

be used to— 

‘‘(1) pay ordinary governmental or nonproject operating expenses; or 

‘‘(2) support a procurement that uses an exclusionary or 

discriminatory specification. 

‘‘(i) GOVERNMENT SHARE OF COSTS FOR CERTAIN PROJECTS.— 

‘‘(1) ACQUIRING VEHICLES AND VEHICLE-RELATED EQUIPMENT OR FACILITIES.— 


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‘‘(A) VEHICLES.—A grant for a project to be assisted 

under this chapter that involves acquiring vehicles for purposes of complying with or maintaining compliance with 

the Americans with Disabilities Act of 1990 (42 U.S.C. 

12101 et seq.) or the Clean Air Act is for 85 percent of the 

net project cost. 

‘‘(B) VEHICLE-RELATED EQUIPMENT OR FACILITIES.—A 

grant for a project to be assisted under this chapter that involves acquiring vehicle-related equipment or facilities required by the Americans with Disabilities Act of 1990 (42 

U.S.C. 12101 et seq.) or vehicle-related equipment or facilities (including clean fuel or alternative fuel vehicle-related 

equipment or facilities) for purposes of complying with or 

maintaining compliance with the Clean Air Act, is for 90 

percent of the net project cost of such equipment or facilities 

attributable to compliance with those Acts. The Secretary 

shall have discretion to determine, through practicable administrative procedures, the costs of such equipment or facilities attributable to compliance with those Acts. 

‘‘(2) COSTS INCURRED BY PROVIDERS OF PUBLIC TRANSPORTATION BY VANPOOL.— 

‘‘(A) LOCAL MATCHING SHARE.—The local matching 

share provided by a recipient of assistance for a capital 

project under this chapter may include any amounts expended by a provider of public transportation by vanpool 

for the acquisition of rolling stock to be used by such provider in the recipient’s service area, excluding any amounts 

the provider may have received in Federal, State, or local 

government assistance for such acquisition. 

‘‘(B) USE OF REVENUES.—A private provider of public 

transportation by vanpool may use revenues it receives in 

the provision of public transportation service in the service 

area of a recipient of assistance under this chapter that are 

in excess of the provider’s operating costs for the purpose of 

acquiring rolling stock, if the private provider enters into a 

legally binding agreement with the recipient that requires 

the provider to use the rolling stock in the recipient’s service 

area. 

‘‘(C) DEFINITIONS.—In this paragraph, the following 

definitions apply: 

‘‘(i) PRIVATE PROVIDER OF PUBLIC TRANSPORTATION

BY VANPOOL.—The term ‘private provider of public 

transportation by vanpool’ means a private entity providing vanpool services in the service area of a recipient of assistance under this chapter using a commuter 

highway vehicle or vanpool vehicle. 

‘‘(ii) COMMUTER HIGHWAY VEHICLE; VANPOOL VEHICLE.—The term ‘commuter highway vehicle or vanpool 

vehicle’ means any vehicle— 

‘‘(I) the seating capacity of which is at least 6 

adults (not including the driver); and 

‘‘(II) at least 80 percent of the mileage use of 

which can be reasonably expected to be for the purposes of transporting commuters in connection 


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with travel between their residences and their 

place of employment. 

‘‘(j) BUY AMERICA.— ‘‘(1) IN GENERAL.—The Secretary may obligate an amount 

that may be appropriated to carry out this chapter for a project 

only if the steel, iron, and manufactured goods used in the 

project are produced in the United States. 

‘‘(2) WAIVER.—The Secretary may waive paragraph (1) of 

this subsection if the Secretary finds that— 

‘‘(A) applying paragraph (1) would be inconsistent with 

the public interest; 

‘‘(B) the steel, iron, and goods produced in the United 

States are not produced in a sufficient and reasonably 

available amount or are not of a satisfactory quality; 

‘‘(C) when procuring rolling stock (including train control, communication, and traction power equipment) under 

this chapter— 

‘‘(i) the cost of components and subcomponents produced in the United States is more than 60 percent of 

the cost of all components of the rolling stock; and 

‘‘(ii) final assembly of the rolling stock has occurred in the United States; or 

‘‘(D) including domestic material will increase the cost 

of the overall project by more than 25 percent. 

‘‘(3) WRITTEN WAIVER DETERMINATION AND ANNUAL RE- PORT.— ‘‘(A) WRITTEN DETERMINATION.—Before issuing a waiver under paragraph (2), the Secretary shall— 

‘‘(i) publish in the Federal Register and make publicly available in an easily identifiable location on the 

website of the Department of Transportation a detailed 

written explanation of the waiver determination; and 

‘‘(ii) provide the public with a reasonable period of 

time for notice and comment. 

‘‘(B) ANNUAL REPORT.—Not later than 1 year after the 

date of enactment of the Federal Public Transportation Act 

of 2012, and annually thereafter, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation 

and Infrastructure of the House of Representatives a report 

listing any waiver issued under paragraph (2) during the 

preceding year. 

‘‘(4) LABOR COSTS FOR FINAL ASSEMBLY.—In this subsection, labor costs involved in final assembly are not included 

in calculating the cost of components. 

‘‘(5) WAIVER PROHIBITED.—The Secretary may not make a 

waiver under paragraph (2) of this subsection for goods produced in a foreign country if the Secretary, in consultation with 

the United States Trade Representative, decides that the government of that foreign country— 

‘‘(A) has an agreement with the United States Government under which the Secretary has waived the requirement of this subsection; and 

‘‘(B) has violated the agreement by discriminating 

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duced in the United States and to which the agreement applies. 

‘‘(6) PENALTY FOR MISLABELING AND MISREPRESENTATION.— A person is ineligible under subpart 9.4 of the Federal Acquisition Regulation, or any successor thereto, to receive a contract 

or subcontract made with amounts authorized under the Federal Public Transportation Act of 2012 if a court or department, 

agency, or instrumentality of the Government decides the person 

intentionally— 

‘‘(A) affixed a ‘Made in America’ label, or a label with 

an inscription having the same meaning, to goods sold in 

or shipped to the United States that are used in a project 

to which this subsection applies but not produced in the 

United States; or 

‘‘(B) represented that goods described in subparagraph 

(A) of this paragraph were produced in the United States. 

‘‘(7) STATE REQUIREMENTS.—The Secretary may not impose 

any limitation on assistance provided under this chapter that 

restricts a State from imposing more stringent requirements 

than this subsection on the use of articles, materials, and supplies mined, produced, or manufactured in foreign countries in 

projects carried out with that assistance or restricts a recipient 

of that assistance from complying with those State-imposed requirements. 

‘‘(8) OPPORTUNITY TO CORRECT INADVERTENT ERROR.—The 

Secretary may allow a manufacturer or supplier of steel, iron, 

or manufactured goods to correct after bid opening any certification of noncompliance or failure to properly complete the certification (but not including failure to sign the certification) 

under this subsection if such manufacturer or supplier attests 

under penalty of perjury that such manufacturer or supplier 

submitted an incorrect certification as a result of an inadvertent 

or clerical error. The burden of establishing inadvertent or clerical error is on the manufacturer or supplier. 

‘‘(9) ADMINISTRATIVE REVIEW.—A party adversely affected 

by an agency action under this subsection shall have the right 

to seek review under section 702 of title 5. 

‘‘(k) PARTICIPATION OF GOVERNMENTAL AGENCIES IN DESIGN

AND DELIVERY OF TRANSPORTATION SERVICES.—Governmental 

agencies and nonprofit organizations that receive assistance from 

Government sources (other than the Department of Transportation) 

for nonemergency transportation services shall— 

‘‘(1) participate and coordinate with recipients of assistance 

under this chapter in the design and delivery of transportation 

services; and 

‘‘(2) be included in the planning for those services. 

‘‘(l) RELATIONSHIP TO OTHER LAWS.— 

‘‘(1) FRAUD AND FALSE STATEMENTS.—Section 1001 of title 

18 applies to a certificate, submission, or statement provided 

under this chapter. The Secretary may terminate financial assistance under this chapter and seek reimbursement directly, or 

by offsetting amounts, available under this chapter if the Secretary determines that a recipient of such financial assistance 

has made a false or fraudulent statement or related act in connection with a Federal public transportation program. 


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‘‘(2) POLITICAL ACTIVITIES OF NONSUPERVISORY EMPLOYEES.—The provision of assistance under this chapter shall not 

be construed to require the application of chapter 15 of title 5 

to any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) 

to whom such chapter does not otherwise apply. 

‘‘(m) PREAWARD AND POSTDELIVERY REVIEW OF ROLLING STOCK

PURCHASES.—The Secretary shall prescribe regulations requiring a 

preaward and postdelivery review of a grant under this chapter to 

buy rolling stock to ensure compliance with Government motor vehicle safety requirements, subsection (j) of this section, and bid specifications requirements of grant recipients under this chapter. Under 

this subsection, independent inspections and review are required, 

and a manufacturer certification is not sufficient. Rolling stock procurements of 20 vehicles or fewer made for the purpose of serving 

rural areas and urbanized areas with populations of 200,000 or 

fewer shall be subject to the same requirements as established for 

procurements of 10 or fewer buses under the post-delivery purchaser’s requirements certification process under section 663.37(c) of 

title 49, Code of Federal Regulations. 

‘‘(n) SUBMISSION OF CERTIFICATIONS.—A certification required 

under this chapter and any additional certification or assurance required by law or regulation to be submitted to the Secretary may 

be consolidated into a single document to be submitted annually as 

part of a grant application under this chapter. The Secretary shall 

publish annually a list of all certifications required under this 

chapter with the publication required under section 5336(d)(2). 

‘‘(o) GRANT REQUIREMENTS.—The grant requirements under sections 5307, 5309, and 5337 apply to any project under this chapter 

that receives any assistance or other financing under chapter 6 

(other than section 609) of title 23. 

‘‘(p) ALTERNATIVE FUELING FACILITIES.—A recipient of assistance under this chapter may allow the incidental use of federally 

funded alternative fueling facilities and equipment by nontransit 

public entities and private entities if— 

‘‘(1) the incidental use does not interfere with the recipient’s 

public transportation operations; 

‘‘(2) all costs related to the incidental use are fully recaptured by the recipient from the nontransit public entity or private entity; 

‘‘(3) the recipient uses revenues received from the incidental 

use in excess of costs for planning, capital, and operating expenses that are incurred in providing public transportation; 

and 

‘‘(4) private entities pay all applicable excise taxes on fuel. 

‘‘(q) CORRIDOR PRESERVATION.— 

‘‘(1) IN GENERAL.—The Secretary may assist a recipient in 

acquiring right-of-way before the completion of the environmental reviews for any project that may use the right-of-way if 

the acquisition is otherwise permitted under Federal law. The 

Secretary may establish restrictions on such an acquisition as 

the Secretary determines to be necessary and appropriate. 

‘‘(2) ENVIRONMENTAL REVIEWS.—Right-of-way acquired 

under this subsection may not be developed in anticipation of 


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the project until all required environmental reviews for the 

project have been completed. 

‘‘(r) REASONABLE ACCESS TO PUBLIC TRANSPORTATION FACILITIES.—A recipient of assistance under this chapter may not deny 

reasonable access for a private intercity or charter transportation 

operator to federally funded public transportation facilities, including intermodal facilities, park and ride lots, and bus-only highway 

lanes. In determining reasonable access, capacity requirements of 

the recipient of assistance and the extent to which access would be 

detrimental to existing public transportation services must be considered.’’. 

SEC. 20017. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM. 

(a) IN GENERAL.—Section 5324 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5324. Public transportation emergency relief program 

‘‘(a) DEFINITION.—In this section the following definitions shall 

apply: 

‘‘(1) ELIGIBLE OPERATING COSTS.—The term ‘eligible operating costs’ means costs relating to— 

‘‘(A) evacuation services; 

‘‘(B) rescue operations; 

‘‘(C) temporary public transportation service; or 

‘‘(D) reestablishing, expanding, or relocating public 

transportation route service before, during, or after an 

emergency. 

‘‘(2) EMERGENCY.—The term ‘emergency’ means a natural 

disaster affecting a wide area (such as a flood, hurricane, tidal 

wave, earthquake, severe storm, or landslide) or a catastrophic 

failure from any external cause, as a result of which— 

‘‘(A) the Governor of a State has declared an emergency 

and the Secretary has concurred; or 

‘‘(B) the President has declared a major disaster under 

section 401 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5170). 

‘‘(b) GENERAL AUTHORITY.—The Secretary may make grants 

and enter into contracts and other agreements (including agreements with departments, agencies, and instrumentalities of the Government) for— 

‘‘(1) capital projects to protect, repair, reconstruct, or replace equipment and facilities of a public transportation system 

operating in the United States or on an Indian reservation that 

the Secretary determines is in danger of suffering serious damage, or has suffered serious damage, as a result of an emergency; and 

‘‘(2) eligible operating costs of public transportation equipment and facilities in an area directly affected by an emergency 

during— 

‘‘(A) the 1-year period beginning on the date of a declaration described in subsection (a)(2); or 

‘‘(B) if the Secretary determines there is a compelling 

need, the 2-year period beginning on the date of a declaration described in subsection (a)(2). 

‘‘(c) COORDINATION OF EMERGENCY FUNDS.— 


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‘‘(1) USE OF FUNDS.—Funds appropriated to carry out this 

section shall be in addition to any other funds available under 

this chapter. 

‘‘(2) NO EFFECT ON OTHER GOVERNMENT ACTIVITY.—The 

provision of funds under this section shall not affect the ability 

of any other agency of the Government, including the Federal 

Emergency Management Agency, or a State agency, a local governmental entity, organization, or person, to provide any other 

funds otherwise authorized by law. 

‘‘(3) NOTIFICATION.—The Secretary shall notify the Secretary of Homeland Security of the purpose and amount of any 

grant made or contract or other agreement entered into under 

this section. 

‘‘(d) GRANT REQUIREMENTS.—A grant awarded under this section or under section 5307 or 5311 that is made to address an emergency defined under subsection (a)(2) shall be— 

‘‘(1) subject to the terms and conditions the Secretary determines are necessary; and 

‘‘(2) made only for expenses that are not reimbursed under 

the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

‘‘(e) GOVERNMENT SHARE OF COSTS.— ‘‘(1) CAPITAL PROJECTS AND OPERATING ASSISTANCE.—A 

grant, contract, or other agreement for a capital project or eligible operating costs under this section shall be, at the option of 

the recipient, for not more than 80 percent of the net project 

cost, as determined by the Secretary. 

‘‘(2) NON-FEDERAL SHARE.—The remainder of the net 

project cost may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new 

capital. 

‘‘(3) WAIVER.—The Secretary may waive, in whole or part, 

the non-Federal share required under— 

‘‘(A) paragraph (2); or 

‘‘(B) section 5307 or 5311, in the case of a grant made 

available under section 5307 or 5311, respectively, to address an emergency.’’. 

(b) MEMORANDUM OF AGREEMENT.— (1) PURPOSES.—The purposes of this subsection are— 

(A) to improve coordination between the Department of 

Transportation and the Department of Homeland Security; 

and 

(B) to expedite the provision of Federal assistance for 

public transportation systems for activities relating to a 

major disaster or emergency declared by the President 

under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) (referred to in 

this subsection as a ‘‘major disaster or emergency’’). 

(2) AGREEMENT.—Not later than 180 days after the date of 

enactment of this Act, the Secretary of Transportation and the 

Secretary of Homeland Security shall enter into a memorandum 

of agreement to coordinate the roles and responsibilities of the 

Department of Transportation and the Department of Homeland Security in providing assistance for public transportation, 

including the provision of public transportation services and the 


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repair and restoration of public transportation systems in areas 

for which the President has declared a major disaster or emergency. 

(3) CONTENTS OF AGREEMENT.—The memorandum of agreement required under paragraph (2) shall— 

(A) provide for improved coordination and expeditious 

use of public transportation, as appropriate, in response to 

and recovery from a major disaster or emergency; 

(B) establish procedures to address— 

(i) issues that have contributed to delays in the reimbursement of eligible transportation-related expenses 

relating to a major disaster or emergency; 

(ii) any challenges identified in the review under 

paragraph (4); and 

(iii) the coordination of assistance for public transportation provided under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and section 

5324 of title 49, United States Code, as amended by 

this Act, as appropriate; and 

(C) provide for the development and distribution of 

clear guidelines for State, local, and tribal governments, including public transportation systems, relating to— 

(i) assistance available for public transportation 

systems for activities relating to a major disaster or 

emergency— 

(I) under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act; 

(II) under section 5324 of title 49, United 

States Code, as amended by this Act; and 

(III) from other sources, including other Federal agencies; and 

(ii) reimbursement procedures that speed the process of— 

(I) applying for assistance under the Robert T. 

Stafford Disaster Relief and Emergency Assistance 

Act and section 5324 of title 49, United States 

Code, as amended by this Act; and 

(II) distributing assistance for public transportation systems under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and section 5324 of title 49, United States Code, as 

amended by this Act. 

(4) AFTER ACTION REVIEW.—Before entering into a memorandum of agreement under paragraph (2), the Secretary of 

Transportation and the Secretary of Homeland Security (acting 

through the Administrator of the Federal Emergency Management Agency), in consultation with State, local, and tribal governments (including public transportation systems) that have 

experienced a major disaster or emergency, shall review after 

action reports relating to major disasters, emergencies, and exercises, to identify areas where coordination between the Department of Transportation and the Department of Homeland 

Security and the provision of public transportation services 

should be improved. 


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(5) FACTORS FOR DECLARATIONS OF MAJOR DISASTERS AND

EMERGENCIES.—The Administrator of the Federal Emergency 

Management Agency shall make available to State, local, and 

tribal governments, including public transportation systems, a 

description of the factors that the President considers in declaring a major disaster or emergency, including any pre-disaster 

emergency declaration policies. 

(6) BRIEFINGS.— (A) INITIAL BRIEFING.—Not later than 180 days after 

the date of enactment of this Act, the Secretary of Transportation and the Secretary of Homeland Security shall jointly 

brief the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate on the memorandum of 

agreement required under paragraph (2). 

(B) QUARTERLY BRIEFINGS.—Each quarter of the 1-year 

period beginning on the date on which the Secretary of 

Transportation and the Secretary of Homeland Security 

enter into the memorandum of agreement required under 

paragraph (2), the Secretary of Transportation and the Secretary of Homeland Security shall jointly brief the Committee on Banking, Housing, and Urban Affairs and the 

Committee on Homeland Security and Governmental Affairs of the Senate on the implementation of the memorandum of agreement. 

SEC. 20018. CONTRACT REQUIREMENTS. 

Section 5325 of title 49, United States Code, is amended— 

(1) in subsection (e), by striking paragraph (1) and inserting the following: 

‘‘(1) CONTRACTS.—A recipient procuring rolling stock with 

Government financial assistance under this chapter may make 

a multiyear contract to buy the rolling stock and replacement 

parts under which the recipient has an option to buy additional 

rolling stock or replacement parts for— 

‘‘(A) not more than 5 years after the date of the original 

contract for bus procurements; and 

‘‘(B) not more than 7 years after the date of the original 

contract for rail procurements, provided that such option 

does not allow for significant changes or alterations to the 

rolling stock.’’. 

(2) in subsection (h), by striking ‘‘Federal Public Transportation Act of 2005’’ and inserting ‘‘Federal Public Transportation Act of 2012’’; 

(3) in subsection (j)(2)(C), by striking ‘‘, including the performance reported in the Contractor Performance Assessment 

Reports required under section 5309(l)(2)’’; and 

(4) by adding at the end the following: 

‘‘(k) VETERANS EMPLOYMENT.—Recipients and subrecipients of 

Federal financial assistance under this chapter shall ensure that 

contractors working on a capital project funded using such assistance give a hiring preference, to the extent practicable, to veterans 

(as defined in section 2108 of title 5) who have the requisite skills 

and abilities to perform the construction work required under the 

contract. This subsection shall not be understood, construed or enforced in any manner that would require an employer to give a prefVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00315 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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erence to any veteran over any equally qualified applicant who is a 

member of any racial or ethnic minority, female, an individual with 

a disability, or a former employee.’’. 

SEC. 20019. TRANSIT ASSET MANAGEMENT. 

Section 5326 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5326. Transit asset management 

‘‘(a) DEFINITIONS.—In this section the following definitions 

shall apply: 

‘‘(1) CAPITAL ASSET.—The term ‘capital asset’ includes 

equipment, rolling stock, infrastructure, and facilities for use in 

public transportation and owned or leased by a recipient or 

subrecipient of Federal financial assistance under this chapter. 

‘‘(2) TRANSIT ASSET MANAGEMENT PLAN.—The term ‘transit 

asset management plan’ means a plan developed by a recipient 

of funding under this chapter that— 

‘‘(A) includes, at a minimum, capital asset inventories 

and condition assessments, decision support tools, and investment prioritization; and 

‘‘(B) the recipient certifies complies with the rule issued 

under this section. 

‘‘(3) TRANSIT ASSET MANAGEMENT SYSTEM.—The term ‘transit asset management system’ means a strategic and systematic 

process of operating, maintaining, and improving public transportation capital assets effectively throughout the life cycle of 

such assets. 

‘‘(b) TRANSIT ASSET MANAGEMENT SYSTEM.—The Secretary 

shall establish and implement a national transit asset management 

system, which shall include— 

‘‘(1) a definition of the term ‘state of good repair’ that includes objective standards for measuring the condition of capital assets of recipients, including equipment, rolling stock, infrastructure, and facilities; 

‘‘(2) a requirement that recipients and subrecipients of Federal financial assistance under this chapter develop a transit 

asset management plan; 

‘‘(3) a requirement that each designated recipient of Federal 

financial assistance under this chapter report on the condition 

of the system of the recipient and provide a description of any 

change in condition since the last report; 

‘‘(4) an analytical process or decision support tool for use 

by public transportation systems that— 

‘‘(A) allows for the estimation of capital investment 

needs of such systems over time; and 

‘‘(B) assists with asset investment prioritization by such 

systems; and 

‘‘(5) technical assistance to recipients of Federal financial 

assistance under this chapter. 

‘‘(c) PERFORMANCE MEASURES AND TARGETS.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date of 

enactment of the Federal Public Transportation Act of 2012, the 

Secretary shall issue a final rule to establish performance measures based on the state of good repair standards established 

under subsection (b)(1). 


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‘‘(2) TARGETS.—Not later than 3 months after the date on 

which the Secretary issues a final rule under paragraph (1), 

and each fiscal year thereafter, each recipient of Federal financial assistance under this chapter shall establish performance 

targets in relation to the performance measures established by 

the Secretary. 

‘‘(3) REPORTS.—Each designated recipient of Federal financial assistance under this chapter shall submit to the Secretary 

an annual report that describes— 

‘‘(A) the progress of the recipient during the fiscal year 

to which the report relates toward meeting the performance 

targets established under paragraph (2) for that fiscal year; 

and 

‘‘(B) the performance targets established by the recipient for the subsequent fiscal year. 

‘‘(d) RULEMAKING.—Not later than 1 year after the date of enactment of the Federal Public Transportation Act of 2012, the Secretary shall issue a final rule to implement the transit asset management system described in subsection (b).’’. 

SEC. 20020. PROJECT MANAGEMENT OVERSIGHT. 

Section 5327 of title 49, United States Code, is amended— 

(1) in subsection (a)— 

(A) in the matter preceding paragraph (1), by striking 

‘‘United States’’ and all that follows through ‘‘Secretary of 

Transportation’’ and inserting the following: ‘‘Federal financial assistance for a major capital project for public 

transportation under this chapter or any other provision of 

Federal law, a recipient must prepare a project management plan approved by the Secretary and carry out the 

project in accordance with the project management plan’’; 

and 

(B) in paragraph (12), by striking ‘‘each month’’ and 

inserting ‘‘quarterly’’; 

(2) by striking subsections (c), (d), and (f); 

(3) by inserting after subsection (b) the following: 

‘‘(c) ACCESS TO SITES AND RECORDS.—Each recipient of Federal 

financial assistance for public transportation under this chapter or 

any other provision of Federal law shall provide the Secretary and 

a contractor the Secretary chooses under section 5338(i) with access 

to the construction sites and records of the recipient when reasonably necessary.’’; 

(4) by redesignating subsection (e) as subsection (d); and 

(5) in subsection (d), as so redesignated— 

(A) in paragraph (1), by striking ‘‘subsection (c) of this 

section’’ and inserting ‘‘section 5338(i)’’; and 

(B) in paragraph (2)— 

(i) by striking ‘‘preliminary engineering stage’’ and 

inserting ‘‘project development phase’’; and 

(ii) by striking ‘‘another stage’’ and inserting ‘‘another phase’’. 

SEC. 20021. PUBLIC TRANSPORTATION SAFETY. 

(a) PUBLIC TRANSPORTATION SAFETY PROGRAM.—Section 5329 

of title 49, United States Code, is amended to read as follows: 


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‘‘§ 5329. Public transportation safety program 

‘‘(a) DEFINITION.—In this section, the term ‘recipient’ means a 

State or local governmental authority, or any other operator of a 

public transportation system, that receives financial assistance 

under this chapter. 

‘‘(b) NATIONAL PUBLIC TRANSPORTATION SAFETY PLAN.— ‘‘(1) IN GENERAL.—The Secretary shall create and implement a national public transportation safety plan to improve 

the safety of all public transportation systems that receive funding under this chapter. 

‘‘(2) CONTENTS OF PLAN.—The national public transportation safety plan under paragraph (1) shall include— 

‘‘(A) safety performance criteria for all modes of public 

transportation; 

‘‘(B) the definition of the term ‘state of good repair’ established under section 5326(b); 

‘‘(C) minimum safety performance standards for public 

transportation vehicles used in revenue operations that— 

‘‘(i) do not apply to rolling stock otherwise regulated by the Secretary or any other Federal agency; and 

‘‘(ii) to the extent practicable, take into consideration— 

‘‘(I) relevant recommendations of the National 

Transportation Safety Board; and 

‘‘(II) recommendations of, and best practices 

standards developed by, the public transportation 

industry; and 

‘‘(D) a public transportation safety certification training program, as described in subsection (c). 

‘‘(c) PUBLIC TRANSPORTATION SAFETY CERTIFICATION TRAINING

PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall establish a public 

transportation safety certification training program for Federal 

and State employees, or other designated personnel, who conduct safety audits and examinations of public transportation 

systems and employees of public transportation agencies directly responsible for safety oversight. 

‘‘(2) INTERIM PROVISIONS.—Not later than 90 days after the 

date of enactment of the Federal Public Transportation Act of 

2012, the Secretary shall establish interim provisions for the 

certification and training of the personnel described in paragraph (1), which shall be in effect until the effective date of the 

final rule issued by the Secretary to implement this subsection. 

‘‘(d) PUBLIC TRANSPORTATION AGENCY SAFETY PLAN.— 

‘‘(1) IN GENERAL.—Effective 1 year after the effective date of 

a final rule issued by the Secretary to carry out this subsection, 

each recipient or State, as described in paragraph (3), shall certify that the recipient or State has established a comprehensive 

agency safety plan that includes, at a minimum— 

‘‘(A) a requirement that the board of directors (or equivalent entity) of the recipient approve the agency safety plan 

and any updates to the agency safety plan; 

‘‘(B) methods for identifying and evaluating safety risks 

throughout all elements of the public transportation system 

of the recipient; 


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‘‘(C) strategies to minimize the exposure of the public, 

personnel, and property to hazards and unsafe conditions; 

‘‘(D) a process and timeline for conducting an annual 

review and update of the safety plan of the recipient; 

‘‘(E) performance targets based on the safety performance criteria and state of good repair standards established 

under subparagraphs (A) and (B), respectively, of subsection (b)(2); 

‘‘(F) assignment of an adequately trained safety officer 

who reports directly to the general manager, president, or 

equivalent officer of the recipient; and 

‘‘(G) a comprehensive staff training program for the operations personnel and personnel directly responsible for 

safety of the recipient that includes— 

‘‘(i) the completion of a safety training program; 

and 

‘‘(ii) continuing safety education and training. 

‘‘(2) INTERIM AGENCY SAFETY PLAN.—A system safety plan 

developed pursuant to part 659 of title 49, Code of Federal Regulations, as in effect on the date of enactment of the Federal 

Public Transportation Act of 2012, shall remain in effect until 

such time as this subsection takes effect. 

‘‘(3) PUBLIC TRANSPORTATION AGENCY SAFETY PLAN DRAFT- ING AND CERTIFICATION.— ‘‘(A) SECTION 5311.—For a recipient receiving assistance 

under section 5311, a State safety plan may be drafted and 

certified by the recipient or a State. 

‘‘(B) SECTION 5307.—Not later than 120 days after the 

date of enactment of the Federal Public Transportation Act 

of 2012, the Secretary shall issue a rule designating recipients of assistance under section 5307 that are small public 

transportation providers or systems that may have their 

State safety plans drafted or certified by a State. 

‘‘(e) STATE SAFETY OVERSIGHT PROGRAM.— 

‘‘(1) APPLICABILITY.—This subsection applies only to eligible 

States. 

‘‘(2) DEFINITION.—In this subsection, the term ‘eligible 

State’ means a State that has— 

‘‘(A) a rail fixed guideway public transportation system 

within the jurisdiction of the State that is not subject to 

regulation by the Federal Railroad Administration; or 

‘‘(B) a rail fixed guideway public transportation system 

in the engineering or construction phase of development 

within the jurisdiction of the State that will not be subject 

to regulation by the Federal Railroad Administration. 

‘‘(3) IN GENERAL.—In order to obligate funds apportioned 

under section 5338 to carry out this chapter, effective 3 years 

after the date on which a final rule under this subsection becomes effective, an eligible State shall have in effect a State 

safety oversight program approved by the Secretary under 

which the State— 

‘‘(A) assumes responsibility for overseeing rail fixed 

guideway public transportation safety; 

‘‘(B) adopts and enforces Federal and relevant State 

laws on rail fixed guideway public transportation safety; 


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‘‘(C) establishes a State safety oversight agency; 

‘‘(D) determines, in consultation with the Secretary, an 

appropriate staffing level for the State safety oversight 

agency that is commensurate with the number, size, and 

complexity of the rail fixed guideway public transportation 

systems in the eligible State; 

‘‘(E) requires that employees and other designated personnel of the eligible State safety oversight agency who are 

responsible for rail fixed guideway public transportation 

safety oversight are qualified to perform such functions 

through appropriate training, including successful completion of the public transportation safety certification training 

program established under subsection (c); and 

‘‘(F) prohibits any public transportation agency from 

providing funds to the State safety oversight agency or an 

entity designated by the eligible State as the State safety 

oversight agency under paragraph (4). 

‘‘(4) STATE SAFETY OVERSIGHT AGENCY.— 

‘‘(A) IN GENERAL.—Each State safety oversight program 

shall establish a State safety oversight agency that— 

‘‘(i) is financially and legally independent from 

any public transportation entity that the State safety 

oversight agency oversees; 

‘‘(ii) does not directly provide public transportation 

services in an area with a rail fixed guideway public 

transportation system subject to the requirements of 

this section; 

‘‘(iii) does not employ any individual who is also 

responsible for the administration of rail fixed guideway public transportation programs subject to the requirements of this section; 

‘‘(iv) has the authority to review, approve, oversee, 

and enforce the implementation by the rail fixed guideway public transportation agency of the public transportation agency safety plan required under subsection 

(d); 

‘‘(v) has investigative and enforcement authority 

with respect to the safety of rail fixed guideway public 

transportation systems of the eligible State; 

‘‘(vi) audits, at least once triennially, the compliance of the rail fixed guideway public transportation 

systems in the eligible State subject to this subsection 

with the public transportation agency safety plan required under subsection (d); and 

‘‘(vii) provides, at least once annually, a status report on the safety of the rail fixed guideway public 

transportation systems the State safety oversight agency oversees to— 

‘‘(I) the Federal Transit Administration; 

‘‘(II) the Governor of the eligible State; and 

‘‘(III) the board of directors, or equivalent entity, of any rail fixed guideway public transportation 

system that the State safety oversight agency oversees. 


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‘‘(B) WAIVER.—At the request of an eligible State, the 

Secretary may waive clauses (i) and (iii) of subparagraph 

(A) for eligible States with 1 or more rail fixed guideway 

systems in revenue operations, design, or construction, 

that— 

‘‘(i) have fewer than 1,000,000 combined actual 

and projected rail fixed guideway revenue miles per 

year; or 

‘‘(ii) provide fewer than 10,000,000 combined actual and projected unlinked passenger trips per year. 

‘‘(5) PROGRAMS FOR MULTI-STATE RAIL FIXED GUIDEWAY

PUBLIC TRANSPORTATION SYSTEMS.—An eligible State that has 

within the jurisdiction of the eligible State a rail fixed guideway public transportation system that operates in more than 1 

eligible State shall— 

‘‘(A) jointly with all other eligible States in which the 

rail fixed guideway public transportation system operates, 

ensure uniform safety standards and enforcement procedures that shall be in compliance with this section, and establish and implement a State safety oversight program approved by the Secretary; or 

‘‘(B) jointly with all other eligible States in which the 

rail fixed guideway public transportation system operates, 

designate an entity having characteristics consistent with 

the characteristics described in paragraph (3) to carry out 

the State safety oversight program approved by the Secretary. 

‘‘(6) GRANTS.— ‘‘(A) IN GENERAL.—The Secretary shall make grants to 

eligible States to develop or carry out State safety oversight 

programs under this subsection. Grant funds may be used 

for program operational and administrative expenses, including employee training activities. 

‘‘(B) APPORTIONMENT.— 

‘‘(i) FORMULA.—The amount made available for 

State safety oversight under section 5336(h) shall be 

apportioned among eligible States under a formula to 

be established by the Secretary. Such formula shall 

take into account fixed guideway vehicle revenue miles, 

fixed guideway route miles, and fixed guideway vehicle 

passenger miles attributable to all rail fixed guideway 

systems not subject to regulation by the Federal Railroad Administration within each eligible State. 

‘‘(ii) ADMINISTRATIVE REQUIREMENTS.—Grant 

funds apportioned to States under this paragraph shall 

be subject to uniform administrative requirements for 

grants and cooperative agreements to State and local 

governments under part 18 of title 49, Code of Federal 

Regulations, and shall be subject to the requirements of 

this chapter as the Secretary determines appropriate. 

‘‘(C) GOVERNMENT SHARE.— ‘‘(i) IN GENERAL.—The Government share of the 

reasonable cost of a State safety oversight program developed or carried out using a grant under this paragraph shall be 80 percent. 


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‘‘(ii) IN-KIND CONTRIBUTIONS.—Any calculation of 

the non-Government share of a State safety oversight 

program shall include in-kind contributions by an eligible State. 

‘‘(iii) NON-GOVERNMENT SHARE.—The non-Government share of the cost of a State safety oversight program developed or carried out using a grant under this 

paragraph may not be met by— 

‘‘(I) any Federal funds; 

‘‘(II) any funds received from a public transportation agency; or 

‘‘(III) any revenues earned by a public transportation agency. 

‘‘(iv) SAFETY TRAINING PROGRAM.—Recipients of 

funds made available to carry out sections 5307 and 

5311 may use not more than 0.5 percent of their formula funds to pay not more than 80 percent of the cost 

of participation in the public transportation safety certification training program established under subsection (c), by an employee of a State safety oversight 

agency or a recipient who is directly responsible for 

safety oversight. 

‘‘(7) CERTIFICATION PROCESS.— ‘‘(A) IN GENERAL.—Not later than 1 year after the date 

of enactment of the Federal Public Transportation Act of 

2012, the Secretary shall determine whether or not each 

State safety oversight program meets the requirements of 

this subsection and the State safety oversight program is 

adequate to promote the purposes of this section. 

‘‘(B) ISSUANCE OF CERTIFICATIONS AND DENIALS.—The 

Secretary shall issue a certification to each eligible State 

that the Secretary determines under subparagraph (A) adequately meets the requirements of this subsection, and shall 

issue a denial of certification to each eligible State that the 

Secretary determines under subparagraph (A) does not adequately meet the requirements of this subsection. 

‘‘(C) DISAPPROVAL.—If the Secretary determines that a 

State safety oversight program does not meet the requirements of this subsection and denies certification, the Secretary shall transmit to the eligible State a written explanation and allow the eligible State to modify and resubmit 

the State safety oversight program for approval. 

‘‘(D) FAILURE TO CORRECT.—If the Secretary determines 

that a modification by an eligible State of the State safety 

oversight program is not sufficient to certify the program, 

the Secretary— 

‘‘(i) shall notify the Governor of the eligible State 

of such denial of certification and failure to adequately 

modify the program, and shall request that the Governor take all possible actions to correct deficiencies in 

the program to ensure the certification of the program; 

and 

‘‘(ii) may— 

‘‘(I) withhold funds available under paragraph 

(6) in an amount determined by the Secretary; 


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‘‘(II) withhold not more than 5 percent of the 

amount required to be appropriated for use in a 

State or urbanized area in the State under section 

5307 of this title, until the State safety oversight 

program has been certified; or 

‘‘(III) require fixed guideway public transportation systems under such State safety oversight 

program to provide up to 100 percent of Federal 

assistance made available under this chapter only 

for safety-related improvements on such systems, 

until the State safety oversight program has been 

certified. 

‘‘(8) EVALUATION OF PROGRAM AND ANNUAL REPORT.—The 

Secretary shall continually evaluate the implementation of a 

State safety oversight program by a State safety oversight agency, and shall submit on or before July 1 of each year to the 

Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of 

the House of Representatives a report on— 

‘‘(A) the amount of funds apportioned to each eligible 

State; and 

‘‘(B) the certification status of each State safety oversight program, including what steps a State program that 

has been denied certification must take in order to be certified. 

‘‘(9) FEDERAL OVERSIGHT.—The Secretary shall— 

‘‘(A) oversee the implementation of each State safety 

oversight program under this subsection; 

‘‘(B) audit the operations of each State safety oversight 

agency at least once triennially; and 

‘‘(C) issue rules to carry out this subsection. 

‘‘(f) AUTHORITY OF SECRETARY.—In carrying out this section, 

the Secretary may— 

‘‘(1) conduct inspections, investigations, audits, examinations, and testing of the equipment, facilities, rolling stock, and 

operations of the public transportation system of a recipient; 

‘‘(2) make reports and issue directives with respect to the 

safety of the public transportation system of a recipient; 

‘‘(3) in conjunction with an accident investigation or an investigation into a pattern or practice of conduct that negatively 

affects public safety, issue a subpoena to, and take the deposition of, any employee of a recipient or a State safety oversight 

agency, if— 

‘‘(A) before the issuance of the subpoena, the Secretary 

requests a determination by the Attorney General of the 

United States as to whether the subpoena will interfere 

with an ongoing criminal investigation; and 

‘‘(B) the Attorney General— 

‘‘(i) determines that the subpoena will not interfere 

with an ongoing criminal investigation; or 

‘‘(ii) fails to make a determination under clause (i) 

before the date that is 30 days after the date on which 

the Secretary makes a request under subparagraph (A); 


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‘‘(4) require the production of documents by, and prescribe 

recordkeeping and reporting requirements for, a recipient or a 

State safety oversight agency; 

‘‘(5) investigate public transportation accidents and incidents and provide guidance to recipients regarding prevention 

of accidents and incidents; 

‘‘(6) at reasonable times and in a reasonable manner, enter 

and inspect equipment, facilities, rolling stock, operations, and 

relevant records of the public transportation system of a recipient; and 

‘‘(7) issue rules to carry out this section. 

‘‘(g) ENFORCEMENT ACTIONS.— 

‘‘(1) TYPES OF ENFORCEMENT ACTIONS.—The Secretary may 

take enforcement action against an eligible State, as defined in 

subsection (e), that does not comply with Federal law with respect to the safety of the public transportation system, including— 

‘‘(A) issuing directives; 

‘‘(B) requiring more frequent oversight of the recipient 

by a State safety oversight agency or the Secretary; 

‘‘(C) imposing more frequent reporting requirements; 

and 

‘‘(D) requiring that any Federal financial assistance 

provided under this chapter be spent on correcting safety 

deficiencies identified by the Secretary or the State safety 

oversight agency before such funds are spent on other 

projects. 

‘‘(2) USE OR WITHHOLDING OF FUNDS.— ‘‘(A) IN GENERAL.—The Secretary may require the use 

of funds in accordance with paragraph (1)(D) only if the 

Secretary finds that a recipient is engaged in a pattern or 

practice of serious safety violations or has otherwise refused 

to comply with Federal law relating to the safety of the 

public transportation system. 

‘‘(B) NOTICE.—Before withholding funds from a recipient, the Secretary shall provide to the recipient— 

‘‘(i) written notice of a violation and the amount 

proposed to be withheld; and 

‘‘(ii) a reasonable period of time within which the 

recipient may address the violation or propose and initiate an alternative means of compliance that the Secretary determines is acceptable. 

‘‘(h) COST-BENEFIT ANALYSIS.— 

‘‘(1) ANALYSIS REQUIRED.—In carrying out this section, the 

Secretary shall take into consideration the costs and benefits of 

each action the Secretary proposes to take under this section. 

‘‘(2) WAIVER.—The Secretary may waive the requirement 

under this subsection if the Secretary determines that such a 

waiver is in the public interest. 

‘‘(i) CONSULTATION BY THE SECRETARY OF HOMELAND SECU- RITY.—The Secretary of Homeland Security shall consult with the 

Secretary of Transportation before the Secretary of Homeland Security issues a rule or order that the Secretary of Transportation determines affects the safety of public transportation design, construction, or operations. 


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‘‘(j) ACTIONS UNDER STATE LAW.— 

‘‘(1) RULE OF CONSTRUCTION.—Nothing in this section shall 

be construed to preempt an action under State law seeking 

damages for personal injury, death, or property damage alleging that a party has failed to comply with— 

‘‘(A) a Federal standard of care established by a regulation or order issued by the Secretary under this section; 

or 

‘‘(B) its own program, rule, or standard that it created 

pursuant to a rule or order issued by the Secretary. 

‘‘(2) EFFECTIVE DATE.—This subsection shall apply to any 

cause of action under State law arising from an event or activity occurring on or after the date of enactment of the Federal 

Public Transportation Act of 2012. 

‘‘(3) JURISDICTION.—Nothing in this section shall be construed to create a cause of action under Federal law on behalf 

of an injured party or confer Federal question jurisdiction for 

a State law cause of action. 

‘‘(k) NATIONAL PUBLIC TRANSPORTATION SAFETY REPORT.—Not 

later than 3 years after the date of enactment of the Federal Public 

Transportation Act of 2012, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and 

the Committee on Transportation and Infrastructure of the House of 

Representatives a report that— 

‘‘(1) analyzes public transportation safety trends among the 

States and documents the most effective safety programs implemented using grants under this section; and 

‘‘(2) describes the effect on public transportation safety of 

activities carried out using grants under this section.’’. 

(b) BUS SAFETY STUDY.— 

(1) DEFINITION.—In this subsection, the term ‘‘highway 

route’’ means a route where 50 percent or more of the route is 

on roads having a speed limit of more than 45 miles per hour. 

(2) STUDY.—Not later than 180 days after the date of enactment of this Act, the Secretary of Transportation shall submit 

to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that— 

(A) examines the safety of public transportation buses 

that travel on highway routes; 

(B) examines laws and regulations that apply to commercial over-the-road buses; and 

(C) makes recommendations as to whether additional 

safety measures should be required for public transportation buses that travel on highway routes. 

SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING. 

Section 5331 of title 49, United States Code, is amended by 

striking subsection (g) and inserting the following: 

‘‘(g) CONDITIONS ON FEDERAL ASSISTANCE.— 

‘‘(1) INELIGIBILITY FOR ASSISTANCE.—A person that receives 

funds under this chapter is not eligible for financial assistance 

under section 5307, 5309, or 5311 of this title if the person is 

required, under regulations the Secretary prescribes under this 

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stances testing and does not establish the program in accordance with this section. 

‘‘(2) ADDITIONAL REMEDIES.—If the Secretary determines 

that a person that receives funds under this chapter is not in 

compliance with regulations prescribed under this section, the 

Secretary may bar the person from receiving Federal transit assistance in an amount the Secretary considers appropriate.’’. 

SEC. 20023. NONDISCRIMINATION. 

(a) AMENDMENTS.—Section 5332 of title 49, United States Code, 

is amended— 

(1) in subsection (b)— 

(A) by striking ‘‘creed’’ and inserting ‘‘religion’’; and 

(B) by inserting ‘‘disability,’’ after ‘‘sex,’’; and 

(2) in subsection (d)(3), by striking ‘‘and’’ and inserting 

‘‘or’’. 

(b) EVALUATION AND REPORT.— 

(1) EVALUATION.—The Comptroller General of the United 

States shall evaluate the progress and effectiveness of the Federal Transit Administration in assisting recipients of assistance 

under chapter 53 of title 49, United States Code, to comply with 

section 5332(b) of title 49, including— 

(A) by reviewing discrimination complaints, reports, 

and other relevant information collected or prepared by the 

Federal Transit Administration or recipients of assistance 

from the Federal Transit Administration pursuant to any 

applicable civil rights statute, regulation, or other requirement; and 

(B) by reviewing the process that the Federal Transit 

Administration uses to resolve discrimination complaints 

filed by members of the public. 

(2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the 

Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of 

the House of Representatives a report concerning the evaluation 

under paragraph (1) that includes— 

(A) a description of the ability of the Federal Transit 

Administration to address discrimination and foster equal 

opportunities in federally funded public transportation 

projects, programs, and activities; 

(B) recommendations for improvements if the Comptroller General determines that improvements are necessary; and 

(C) information upon which the evaluation under paragraph (1) is based. 

SEC. 20024. ADMINISTRATIVE PROVISIONS. 

Section 5334 of title 49, United States Code, is amended— 

(1) in subsection (a)(1), by striking ‘‘under sections 5307 

and 5309–5311 of this title’’ and inserting ‘‘that receives Federal 

financial assistance under this chapter’’; 

(2) in subsection (b)(1)— 

(A) by inserting after ‘‘emergency,’’ the following: ‘‘or for 

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prove the safety of public transportation systems in the 

United States as described in section 5329,’’; and 

(B) by striking ‘‘chapter, nor may the Secretary’’ and 

inserting ‘‘chapter. The Secretary may not’’; 

(3) in subsection (c)(4), by striking ‘‘section (except subsection (i)) and sections 5318(e), 5323(a)(2), 5325(a), 5325(b), 

and 5325(f)’’ and inserting ‘‘subsection’’; 

(4) in subsection (h)(3), by striking ‘‘another’’ and inserting 

‘‘any other’’; 

(5) in subsection (i)(1), by striking ‘‘title 23 shall’’ and inserting ‘‘title 23 may’’; 

(6) by striking subsection (j); and 

(7) by redesignating subsections (k) and (l) as subsections 

(j) and (k), respectively. 

SEC. 20025. NATIONAL TRANSIT DATABASE. 

(a) AMENDMENTS.—Section 5335 of title 49, United States Code, 

is amended— 

(1) in subsection (a), by striking ‘‘public transportation financial and operating information’’ and inserting ‘‘public transportation financial, operating, and asset condition information’’; and 

(2) by adding at the end the following: 

‘‘(c) DATA REQUIRED TO BE REPORTED.—The recipient of a 

grant under this chapter shall report to the Secretary, for inclusion 

in the National Transit Database, any information relating to a 

transit asset inventory or condition assessment conducted by the recipient.’’. 

(b) DATA ACCURACY AND RELIABILITY.—The Secretary shall— 

(1) develop and implement appropriate internal control activities to ensure that public transportation safety incident data 

is reported accurately and reliably by public transportation systems and State safety oversight agencies to the State Safety 

Oversight Rail Accident Database; and 

(2) report to the Committee on Banking, Housing, and 

Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives within 

1 year of enactment of the Federal Public Transportation Act of 

2012 on the steps taken to improve the accuracy and reliability 

of public transportation safety incident data reported to the 

State Safety Oversight Rail Accident Database. 

SEC. 20026. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA 

GRANTS. 

Section 5336 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5336. Apportionment of appropriations for formula grants 

‘‘(a) BASED ON URBANIZED AREA POPULATION.—Of the amount 

apportioned under subsection (h)(4) to carry out section 5307— 

‘‘(1) 9.32 percent shall be apportioned each fiscal year only 

in urbanized areas with a population of less than 200,000 so 

that each of those areas is entitled to receive an amount equal 

to— 

‘‘(A) 50 percent of the total amount apportioned multiplied by a ratio equal to the population of the area divided 


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by the total population of all urbanized areas with populations of less than 200,000 as shown in the most recent decennial census; and 

‘‘(B) 50 percent of the total amount apportioned multiplied by a ratio for the area based on population weighted 

by a factor, established by the Secretary, of the number of 

inhabitants in each square mile; and 

‘‘(2) 90.68 percent shall be apportioned each fiscal year only 

in urbanized areas with populations of at least 200,000 as provided in subsections (b) and (c) of this section. 

‘‘(b) BASED ON FIXED GUIDEWAY VEHICLE REVENUE MILES, DIRECTIONAL ROUTE MILES, AND PASSENGER MILES.—(1) In this subsection, ‘fixed guideway vehicle revenue miles’ and ‘fixed guideway 

directional route miles’ include passenger ferry operations directly 

or under contract by the designated recipient. 

‘‘(2) Of the amount apportioned under subsection (a)(2) of this 

section, 33.29 percent shall be apportioned as follows: 

‘‘(A) 95.61 percent of the total amount apportioned under 

this subsection shall be apportioned so that each urbanized 

area with a population of at least 200,000 is entitled to receive 

an amount equal to— 

‘‘(i) 60 percent of the 95.61 percent apportioned under 

this subparagraph multiplied by a ratio equal to the number of fixed guideway vehicle revenue miles attributable to 

the area, as established by the Secretary, divided by the 

total number of all fixed guideway vehicle revenue miles attributable to all areas; and 

‘‘(ii) 40 percent of the 95.61 percent apportioned under 

this subparagraph multiplied by a ratio equal to the number of fixed guideway directional route miles attributable to 

the area, established by the Secretary, divided by the total 

number of all fixed guideway directional route miles attributable to all areas. 

An urbanized area with a population of at least 750,000 in 

which commuter rail transportation is provided shall receive at 

least .75 percent of the total amount apportioned under this 

subparagraph. 

‘‘(B) 4.39 percent of the total amount apportioned under 

this subsection shall be apportioned so that each urbanized 

area with a population of at least 200,000 is entitled to receive 

an amount equal to— 

‘‘(i) the number of fixed guideway vehicle passenger 

miles traveled multiplied by the number of fixed guideway 

vehicle passenger miles traveled for each dollar of operating 

cost in an area; divided by 

‘‘(ii) the total number of fixed guideway vehicle passenger miles traveled multiplied by the total number of 

fixed guideway vehicle passenger miles traveled for each 

dollar of operating cost in all areas. 

An urbanized area with a population of at least 750,000 in 

which commuter rail transportation is provided shall receive at 

least .75 percent of the total amount apportioned under this 

subparagraph. 

‘‘(C) Under subparagraph (A) of this paragraph, fixed 

guideway vehicle revenue or directional route miles, and pasVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00328 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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sengers served on those miles, in an urbanized area with a population of less than 200,000, where the miles and passengers 

served otherwise would be attributable to an urbanized area 

with a population of at least 1,000,000 in an adjacent State, are 

attributable to the governmental authority in the State in which 

the urbanized area with a population of less than 200,000 is located. The authority is deemed an urbanized area with a population of at least 200,000 if the authority makes a contract for 

the service. 

‘‘(D) A recipient’s apportionment under subparagraph (A)(i) 

of this paragraph may not be reduced if the recipient, after satisfying the Secretary that energy or operating efficiencies would 

be achieved, reduces vehicle revenue miles but provides the 

same frequency of revenue service to the same number of riders. 

‘‘(E) For purposes of subparagraph (A) and section 

5337(c)(3), the Secretary shall deem to be attributable to an urbanized area not less than 22.27 percent of the fixed guideway 

vehicle revenue miles or fixed guideway directional route miles 

in the public transportation system of a recipient that are located outside the urbanized area for which the recipient receives 

funds, in addition to the fixed guideway vehicle revenue miles 

or fixed guideway directional route miles of the recipient that 

are located inside the urbanized area. 

‘‘(c) BASED ON BUS VEHICLE REVENUE MILES AND PASSENGER

MILES.—Of the amount apportioned under subsection (a)(2) of this 

section, 66.71 percent shall be apportioned as follows: 

‘‘(1) 90.8 percent of the total amount apportioned under this 

subsection shall be apportioned as follows: 

‘‘(A) 73.39 percent of the 90.8 percent apportioned 

under this paragraph shall be apportioned so that each urbanized area with a population of at least 1,000,000 is entitled to receive an amount equal to— 

‘‘(i) 50 percent of the 73.39 percent apportioned 

under this subparagraph multiplied by a ratio equal to 

the total bus vehicle revenue miles operated in or directly serving the urbanized area divided by the total 

bus vehicle revenue miles attributable to all areas; 

‘‘(ii) 25 percent of the 73.39 percent apportioned 

under this subparagraph multiplied by a ratio equal to 

the population of the area divided by the total population of all areas, as shown in the most recent decennial census; and 

‘‘(iii) 25 percent of the 73.39 percent apportioned 

under this subparagraph multiplied by a ratio for the 

area based on population weighted by a factor, established by the Secretary, of the number of inhabitants in 

each square mile. 

‘‘(B) 26.61 percent of the 90.8 percent apportioned 

under this paragraph shall be apportioned so that each urbanized area with a population of at least 200,000 but not 

more than 999,999 is entitled to receive an amount equal 

to— 

‘‘(i) 50 percent of the 26.61 percent apportioned 

under this subparagraph multiplied by a ratio equal to 

the total bus vehicle revenue miles operated in or diVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00329 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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rectly serving the urbanized area divided by the total 

bus vehicle revenue miles attributable to all areas; 

‘‘(ii) 25 percent of the 26.61 percent apportioned 

under this subparagraph multiplied by a ratio equal to 

the population of the area divided by the total population of all areas, as shown by the most recent decennial census; and 

‘‘(iii) 25 percent of the 26.61 percent apportioned 

under this subparagraph multiplied by a ratio for the 

area based on population weighted by a factor, established by the Secretary, of the number of inhabitants in 

each square mile. 

‘‘(2) 9.2 percent of the total amount apportioned under this 

subsection shall be apportioned so that each urbanized area 

with a population of at least 200,000 is entitled to receive an 

amount equal to— 

‘‘(A) the number of bus passenger miles traveled multiplied by the number of bus passenger miles traveled for 

each dollar of operating cost in an area; divided by 

‘‘(B) the total number of bus passenger miles traveled 

multiplied by the total number of bus passenger miles traveled for each dollar of operating cost in all areas. 

‘‘(d) DATE OF APPORTIONMENT.—The Secretary shall— 

‘‘(1) apportion amounts appropriated under section 

5338(a)(2)(C) of this title to carry out section 5307 of this title 

not later than the 10th day after the date the amounts are appropriated or October 1 of the fiscal year for which the amounts 

are appropriated, whichever is later; and 

‘‘(2) publish apportionments of the amounts, including 

amounts attributable to each urbanized area with a population 

of more than 50,000 and amounts attributable to each State of 

a multistate urbanized area, on the apportionment date. 

‘‘(e) AMOUNTS NOT APPORTIONED TO DESIGNATED RECIPI- ENTS.—The Governor of a State may expend in an urbanized area 

with a population of less than 200,000 an amount apportioned 

under this section that is not apportioned to a designated recipient, 

as defined in section 5302(4). 

‘‘(f) TRANSFERS OF APPORTIONMENTS.—(1) The Governor of a 

State may transfer any part of the State’s apportionment under subsection (a)(1) of this section to supplement amounts apportioned to 

the State under section 5311(c)(3). The Governor may make a transfer only after consulting with responsible local officials and publicly 

owned operators of public transportation in each area for which the 

amount originally was apportioned under this section. 

‘‘(2) The Governor of a State may transfer any part of the 

State’s apportionment under section 5311(c)(3) to supplement 

amounts apportioned to the State under subsection (a)(1) of this section. 

‘‘(3) The Governor of a State may use throughout the State 

amounts of a State’s apportionment remaining available for obligation at the beginning of the 90-day period before the period of the 

availability of the amounts expires. 

‘‘(4) A designated recipient for an urbanized area with a population of at least 200,000 may transfer a part of its apportionment 

under this section to the Governor of a State. The Governor shall 


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distribute the transferred amounts to urbanized areas under this 

section. 

‘‘(5) Capital and operating assistance limitations applicable to 

the original apportionment apply to amounts transferred under this 

subsection. 

‘‘(g) PERIOD OF AVAILABILITY TO RECIPIENTS.—An amount apportioned under this section may be obligated by the recipient for 

5 years after the fiscal year in which the amount is apportioned. Not 

later than 30 days after the end of the 5-year period, an amount 

that is not obligated at the end of that period shall be added to the 

amount that may be apportioned under this section in the next fiscal year. 

‘‘(h) APPORTIONMENTS.—Of the amounts made available for 

each fiscal year under section 5338(a)(2)(C)— 

‘‘(1) $30,000,000 shall be set aside to carry out section 

5307(h); 

‘‘(2) 3.07 percent shall be apportioned to urbanized areas in 

accordance with subsection (j); 

‘‘(3) of amounts not apportioned under paragraphs (1) and 

(2), 1.5 percent shall be apportioned to urbanized areas with 

populations of less than 200,000 in accordance with subsection 

(i); 

‘‘(4) 0.5 percent shall be apportioned to eligible States for 

State safety oversight program grants in accordance with section 5329(e)(6); and 

‘‘(5) any amount not apportioned under paragraphs (1), (2), 

(3), and (4) shall be apportioned to urbanized areas in accordance with subsections (a) through (c). 

‘‘(i) SMALL TRANSIT INTENSIVE CITIES FORMULA.— 

‘‘(1) DEFINITIONS.—In this subsection, the following definitions apply: 

‘‘(A) ELIGIBLE AREA.—The term ‘eligible area’ means an 

urbanized area with a population of less than 200,000 that 

meets or exceeds in one or more performance categories the 

industry average for all urbanized areas with a population 

of at least 200,000 but not more than 999,999, as determined by the Secretary in accordance with subsection (c)(2). 

‘‘(B) PERFORMANCE CATEGORY.—The term ‘performance 

category’ means each of the following: 

‘‘(i) Passenger miles traveled per vehicle revenue 

mile. 

‘‘(ii) Passenger miles traveled per vehicle revenue 

hour. 

‘‘(iii) Vehicle revenue miles per capita. 

‘‘(iv) Vehicle revenue hours per capita. 

‘‘(v) Passenger miles traveled per capita. 

‘‘(vi) Passengers per capita. 

‘‘(2) APPORTIONMENT.— 

‘‘(A) APPORTIONMENT FORMULA.—The amount to be apportioned under subsection (h)(3) shall be apportioned 

among eligible areas in the ratio that— 

‘‘(i) the number of performance categories for which 

each eligible area meets or exceeds the industry average 

in urbanized areas with a population of at least 

200,000 but not more than 999,999; bears to 


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‘‘(ii) the aggregate number of performance categories for which all eligible areas meet or exceed the 

industry average in urbanized areas with a population 

of at least 200,000 but not more than 999,999. 

‘‘(B) DATA USED IN FORMULA.—The Secretary shall calculate apportionments under this subsection for a fiscal 

year using data from the national transit database used to 

calculate apportionments for that fiscal year under this section. 

‘‘(j) APPORTIONMENT FORMULA.—The amounts apportioned 

under subsection (h)(2) shall be apportioned among urbanized areas 

as follows: 

‘‘(1) 75 percent of the funds shall be apportioned among 

designated recipients for urbanized areas with a population of 

200,000 or more in the ratio that— 

‘‘(A) the number of eligible low-income individuals in 

each such urbanized area; bears to 

‘‘(B) the number of eligible low-income individuals in 

all such urbanized areas. 

‘‘(2) 25 percent of the funds shall be apportioned among 

designated recipients for urbanized areas with a population of 

less than 200,000 in the ratio that— 

‘‘(A) the number of eligible low-income individuals in 

each such urbanized area; bears to 

‘‘(B) the number of eligible low-income individuals in 

all such urbanized areas.’’. 

SEC. 20027. STATE OF GOOD REPAIR GRANTS. 

Section 5337 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5337. State of good repair grants 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

shall apply: 

‘‘(1) FIXED GUIDEWAY.—The term ‘fixed guideway’ means a 

public transportation facility— 

‘‘(A) using and occupying a separate right-of-way for 

the exclusive use of public transportation; 

‘‘(B) using rail; 

‘‘(C) using a fixed catenary system; 

‘‘(D) for a passenger ferry system; or 

‘‘(E) for a bus rapid transit system. 

‘‘(2) STATE.—The term ‘State’ means the 50 States, the District of Columbia, and Puerto Rico. 

‘‘(3) STATE OF GOOD REPAIR.—The term ‘state of good repair’ has the meaning given that term by the Secretary, by rule, 

under section 5326(b). 

‘‘(4) TRANSIT ASSET MANAGEMENT PLAN.—The term ‘transit 

asset management plan’ means a plan developed by a recipient 

of funding under this chapter that— 

‘‘(A) includes, at a minimum, capital asset inventories 

and condition assessments, decision support tools, and investment prioritization; and 

‘‘(B) the recipient certifies that the recipient complies 

with the rule issued under section 5326(d). 

‘‘(b) GENERAL AUTHORITY.— 


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‘‘(1) ELIGIBLE PROJECTS.—The Secretary may make grants 

under this section to assist State and local governmental authorities in financing capital projects to maintain public transportation systems in a state of good repair, including projects 

to replace and rehabilitate— 

‘‘(A) rolling stock; 

‘‘(B) track; 

‘‘(C) line equipment and structures; 

‘‘(D) signals and communications; 

‘‘(E) power equipment and substations; 

‘‘(F) passenger stations and terminals; 

‘‘(G) security equipment and systems; 

‘‘(H) maintenance facilities and equipment; 

‘‘(I) operational support equipment, including computer 

hardware and software; 

‘‘(J) development and implementation of a transit asset 

management plan; and 

‘‘(K) other replacement and rehabilitation projects the 

Secretary determines appropriate. 

‘‘(2) INCLUSION IN PLAN.—A recipient shall include a project 

carried out under paragraph (1) in the transit asset management plan of the recipient upon completion of the plan. 

‘‘(c) HIGH INTENSITY FIXED GUIDEWAY STATE OF GOOD REPAIR

FORMULA.— 

‘‘(1) IN GENERAL.—Of the amount authorized or made 

available under section 5338(a)(2)(I), 97.15 percent shall be apportioned to recipients in accordance with this subsection. 

‘‘(2) AREA SHARE.— ‘‘(A) IN GENERAL.—50 percent of the amount described 

in paragraph (1) shall be apportioned for fixed guideway 

systems in accordance with this paragraph. 

‘‘(B) SHARE.—A recipient shall receive an amount equal 

to the amount described in subparagraph (A), multiplied by 

the amount the recipient would have received under this 

section, as in effect for fiscal year 2011, if the amount had 

been calculated in accordance with section 5336(b)(1) and 

using the definition of the term ‘fixed guideway’ under subsection (a) of this section, as such sections are in effect on 

the day after the date of enactment of the Federal Public 

Transportation Act of 2012, and divided by the total 

amount apportioned for all areas under this section for fiscal year 2011. 

‘‘(C) RECIPIENT.—For purposes of this paragraph, the 

term ‘recipient’ means an entity that received funding 

under this section, as in effect for fiscal year 2011. 

‘‘(3) VEHICLE REVENUE MILES AND DIRECTIONAL ROUTE

MILES.— 

‘‘(A) IN GENERAL.—50 percent of the amount described 

in paragraph (1) shall be apportioned to recipients in accordance with this paragraph. 

‘‘(B) VEHICLE REVENUE MILES.—A recipient in an urbanized area shall receive an amount equal to 60 percent 

of the amount described in subparagraph (A), multiplied by 

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retary, divided by the total number of all fixed guideway 

vehicle revenue miles attributable to all urbanized areas. 

‘‘(C) DIRECTIONAL ROUTE MILES.—A recipient in an urbanized area shall receive an amount equal to 40 percent 

of the amount described in subparagraph (A), multiplied by 

the number of fixed guideway directional route miles attributable to the urbanized area, as established by the Secretary, divided by the total number of all fixed guideway 

directional route miles attributable to all urbanized areas. 

‘‘(4) LIMITATION.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), the share of the total amount apportioned under this 

subsection that is apportioned to an area under this subsection shall not decrease by more than 0.25 percentage 

points compared to the share apportioned to the area under 

this subsection in the previous fiscal year. 

‘‘(B) SPECIAL RULE FOR FISCAL YEAR 2013.—In fiscal 

year 2013, the share of the total amount apportioned under 

this subsection that is apportioned to an area under this 

subsection shall not decrease by more than 0.25 percentage 

points compared to the share that would have been apportioned to the area under this section, as in effect for fiscal 

year 2011, if the share had been calculated using the definition of the term ‘fixed guideway’ under subsection (a) of 

this section, as in effect on the day after the date of enactment of the Federal Public Transportation Act of 2012. 

‘‘(5) USE OF FUNDS.—Amounts made available under this 

subsection shall be available for the exclusive use of fixed guideway projects. 

‘‘(6) RECEIVING APPORTIONMENT.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), for an area with a fixed guideway system, the amounts 

provided under this subsection shall be apportioned to the 

designated recipient for the urbanized area in which the 

system operates. 

‘‘(B) EXCEPTION.—An area described in the amendment 

made by section 3028(a) of the Transportation Equity Act 

for the 21st Century (Public Law 105–178; 112 Stat. 366) 

shall receive an individual apportionment under this subsection. 

‘‘(7) APPORTIONMENT REQUIREMENTS.—For purposes of determining the number of fixed guideway vehicle revenue miles 

or fixed guideway directional route miles attributable to an urbanized area for a fiscal year under this subsection, only segments of fixed guideway systems placed in revenue service not 

later than 7 years before the first day of the fiscal year shall 

be deemed to be attributable to an urbanized area. 

‘‘(d) HIGH INTENSITY MOTORBUS STATE OF GOOD REPAIR.— 

‘‘(1) DEFINITION.—For purposes of this subsection, the term 

‘high intensity motorbus’ means public transportation that is 

provided on a facility with access for other high-occupancy vehicles. 

‘‘(2) APPORTIONMENT.—Of the amount authorized or made 

available under section 5338(a)(2)(I), 2.85 percent shall be apVerDate Mar 15 2010 04:47 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00334 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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portioned to urbanized areas for high intensity motorbus state 

of good repair in accordance with this subsection. 

‘‘(3) VEHICLE REVENUE MILES AND DIRECTIONAL ROUTE

MILES.— ‘‘(A) IN GENERAL.—The amount described in paragraph 

(2) shall be apportioned to each area in accordance with 

this paragraph. 

‘‘(B) VEHICLE REVENUE MILES.—Each area shall receive 

an amount equal to 60 percent of the amount described in 

subparagraph (A), multiplied by the number of high intensity motorbus vehicle revenue miles attributable to the area, 

as established by the Secretary, divided by the total number 

of all high intensity motorbus vehicle revenue miles attributable to all areas. 

‘‘(C) DIRECTIONAL ROUTE MILES.—Each area shall receive an amount equal to 40 percent of the amount described in subparagraph (A), multiplied by the number of 

high intensity motorbus directional route miles attributable 

to the area, as established by the Secretary, divided by the 

total number of all high intensity motorbus directional 

route miles attributable to all areas. 

‘‘(4) APPORTIONMENT REQUIREMENTS.—For purposes of determining the number of high intensity motorbus vehicle revenue miles or high intensity motorbus directional route miles 

attributable to an urbanized area for a fiscal year under this 

subsection, only segments of high intensity motorbus systems 

placed in revenue service not later than 7 years before the first 

day of the fiscal year shall be deemed to be attributable to an 

urbanized area.’’. 

SEC. 20028. AUTHORIZATIONS. 

Section 5338 of title 49, United States Code, is amended to read 

as follows: 

‘‘§ 5338. Authorizations 

‘‘(a) FORMULA GRANTS.— ‘‘(1) IN GENERAL.—There shall be available from the Mass 

Transit Account of the Highway Trust Fund to carry out sections 5305, 5307, 5310, 5311, 5318, 5322(d), 5335, 5337, 5339, 

and 5340, and section 20005(b) of the Federal Public Transportation Act of 2012, $8,478,000,000 for fiscal year 2013 and 

$8,595,000,000 for fiscal year 2014. 

‘‘(2) ALLOCATION OF FUNDS.—Of the amounts made available under paragraph (1)— 

‘‘(A) $126,900,000 for fiscal year 2013 and 

$128,800,000 for fiscal year 2014 shall be available to carry 

out section 5305; 

‘‘(B) $10,000,000 for each of fiscal years 2013 and 2014 

shall be available to carry out section 20005(b) of the Federal Public Transportation Act of 2012; 

‘‘(C) $4,397,950,000 for fiscal year 2013 and 

$4,458,650,000 for fiscal year 2014 shall be allocated in accordance with section 5336 to provide financial assistance 

for urbanized areas under section 5307; 

‘‘(D) $254,800,000 for fiscal year 2013 and 

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vide financial assistance for services for the enhanced mobility of seniors and individuals with disabilities under section 5310; 

‘‘(E) $599,500,000 for fiscal year 2013 and $607,800,000 for fiscal year 2014 shall be available to provide financial assistance for rural areas under section 

5311, of which not less than $30,000,000 for fiscal year 

2013 and $30,000,000 for fiscal year 2014 shall be available to carry out section 5311(c)(1) and $20,000,000 for fiscal year 2013 and $20,000,000 for fiscal year 2014 shall be 

available to carry out section 5311(c)(2); ‘‘(F) $3,000,000 for each of fiscal years 2013 and 2014 

shall be available for bus testing under section 5318; ‘‘(G) $5,000,000 for each of fiscal years 2013 and 2014 

shall be available for the national transit institute under 

section 5322(d); 

‘‘(H) $3,850,000 for each of fiscal years 2013 and 2014 

shall be available to carry out section 5335; ‘‘(I) $2,136,300,000 for fiscal year 2013 and $2,165,900,000 for fiscal year 2014 shall be available to 

carry out section 5337; ‘‘(J) $422,000,000 for fiscal year 2013 and $427,800,000 for fiscal year 2014 shall be available for the 

bus and bus facilities program under section 5339; and ‘‘(K) $518,700,000 for fiscal year 2013 and $525,900,000 for fiscal year 2014 shall be allocated in accordance with section 5340 to provide financial assistance 

for urbanized areas under section 5307 and rural areas 

under section 5311. 

‘‘(b) RESEARCH, DEVELOPMENT DEMONSTRATION AND DEPLOY- MENT PROJECTS.—There are authorized to be appropriated to carry out section 5312, $70,000,000 for fiscal year 2013 and $70,000,000 

for fiscal year 2014. 

‘‘(c) TRANSIT COOPERATIVE RESEARCH PROGRAM.—There are authorized to be appropriated to carry out section 5313, $7,000,000 for 

fiscal year 2013 and $7,000,000 for fiscal year 2014. 

‘‘(d) TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.— There are authorized to be appropriated to carry out section 5314, 

$7,000,000 for fiscal year 2013 and $7,000,000 for fiscal year 2014. 

‘‘(e) HUMAN RESOURCES AND TRAINING.—There are authorized 

to be appropriated to carry out subsections (a), (b), (c), and (e) of 

section 5322, $5,000,000 for fiscal year 2013 and $5,000,000 for fiscal year 2014. 

‘‘(f) EMERGENCY RELIEF PROGRAM.—There are authorized to be 

appropriated such sums as are necessary to carry out section 5324. 

‘‘(g) CAPITAL INVESTMENT GRANTS.—There are authorized to be 

appropriated to carry out section 5309, $1,907,000,000 for fiscal 

year 2013 and $1,907,000,000 for fiscal year 2014. 

‘‘(h) ADMINISTRATION.— ‘‘(1) IN GENERAL.—There are authorized to be appropriated to carry out section 5334, $104,000,000 for fiscal year 2013 and 

$104,000,000 for fiscal year 2014. 

‘‘(2) SECTION 5329.—Of the amounts authorized to be appropriated under paragraph (1), not less than $5,000,000 shall be 

available to carry out section 5329. 


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‘‘(3) SECTION 5326.—Of the amounts made available under paragraph (2), not less than $1,000,000 shall be available to 

carry out section 5326. 

‘‘(i) OVERSIGHT.— ‘‘(1) IN GENERAL.—Of the amounts made available to carry 

out this chapter for a fiscal year, the Secretary may use not 

more than the following amounts for the activities described in 

paragraph (2): 

‘‘(A) 0.5 percent of amounts made available to carry out 

section 5305. 

‘‘(B) 0.75 percent of amounts made available to carry 

out section 5307. 

‘‘(C) 1 percent of amounts made available to carry out 

section 5309. 

‘‘(D) 1 percent of amounts made available to carry out 

section 601 of the Passenger Rail Investment and Improvement Act of 2008 (Public Law 110–432; 126 Stat. 4968). 

‘‘(E) 0.5 percent of amounts made available to carry out 

section 5310. 

‘‘(F) 0.5 percent of amounts made available to carry out 

section 5311. 

‘‘(G) 0.75 percent of amounts made available to carry 

out section 5337(c). 

‘‘(2) ACTIVITIES.—The activities described in this paragraph 

are as follows: 

‘‘(A) Activities to oversee the construction of a major 

capital project. 

‘‘(B) Activities to review and audit the safety and security, procurement, management, and financial compliance 

of a recipient or subrecipient of funds under this chapter. 

‘‘(C) Activities to provide technical assistance generally, 

and to provide technical assistance to correct deficiencies 

identified in compliance reviews and audits carried out 

under this section. 

‘‘(3) GOVERNMENT SHARE OF COSTS.—The Government shall 

pay the entire cost of carrying out a contract under this subsection. 

‘‘(4) AVAILABILITY OF CERTAIN FUNDS.—Funds made available under paragraph (1)(C) shall be made available to the Secretary before allocating the funds appropriated to carry out any 

project under a full funding grant agreement. 

‘‘(j) GRANTS AS CONTRACTUAL OBLIGATIONS.— 

‘‘(1) GRANTS FINANCED FROM HIGHWAY TRUST FUND.—A 

grant or contract that is approved by the Secretary and financed with amounts made available from the Mass Transit 

Account of the Highway Trust Fund pursuant to this section is 

a contractual obligation of the Government to pay the Government share of the cost of the project. 

‘‘(2) GRANTS FINANCED FROM GENERAL FUND.—A grant or 

contract that is approved by the Secretary and financed with 

amounts appropriated in advance from the General Fund of the 

Treasury pursuant to this section is a contractual obligation of 

the Government to pay the Government share of the cost of the 

project only to the extent that amounts are appropriated for 

such purpose by an Act of Congress. 


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‘‘(k) AVAILABILITY OF AMOUNTS.—Amounts made available by 

or appropriated under this section shall remain available until expended.’’. 

SEC. 20029. BUS AND BUS FACILITIES FORMULA GRANTS. 

(a) IN GENERAL.—Section 5339 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5339. Bus and bus facilities formula grants 

‘‘(a) GENERAL AUTHORITY.—The Secretary may make grants 

under this section to assist eligible recipients described in subsection 

(c)(1) in financing capital projects— 

‘‘(1) to replace, rehabilitate, and purchase buses and related 

equipment; and 

‘‘(2) to construct bus-related facilities. 

‘‘(b) GRANT REQUIREMENTS.—The requirements of section 5307 

apply to recipients of grants made under this section. 

‘‘(c) ELIGIBLE RECIPIENTS AND SUBRECIPIENTS.— ‘‘(1) RECIPIENTS.—Eligible recipients under this section are 

designated recipients that operate fixed route bus service or that 

allocate funding to fixed route bus operators. 

‘‘(2) SUBRECIPIENTS.—A designated recipient that receives a 

grant under this section may allocate amounts of the grant to 

subrecipients that are public agencies or private nonprofit organizations engaged in public transportation. 

‘‘(d) DISTRIBUTION OF GRANT FUNDS.—Funds allocated under 

section 5338(a)(2)(J) shall be distributed as follows: 

‘‘(1) NATIONAL DISTRIBUTION.—$65,500,000 shall be allocated to all States and territories, with each State receiving 

$1,250,000 and each territory receiving $500,000. 

‘‘(2) DISTRIBUTION USING POPULATION AND SERVICE FAC- TORS.—The remainder of the funds not otherwise distributed 

under paragraph (1) shall be allocated pursuant to the formula 

set forth in section 5336 other than subsection (b). 

‘‘(e) TRANSFERS OF APPORTIONMENTS.— ‘‘(1) TRANSFER FLEXIBILITY FOR NATIONAL DISTRIBUTION

FUNDS.—The Governor of a State may transfer any part of the 

State’s apportionment under subsection (d)(1) to supplement 

amounts apportioned to the State under section 5311(c) of this 

title or amounts apportioned to urbanized areas under subsections (a) and (c) of section 5336 of this title. 

‘‘(2) TRANSFER FLEXIBILITY FOR POPULATION AND SERVICE

FACTORS FUNDS.—The Governor of a State may expend in an 

urbanized area with a population of less than 200,000 any 

amounts apportioned under subsection (d)(2) that are not allocated to designated recipients in urbanized areas with a population of 200,000 or more. 

‘‘(f) GOVERNMENT’S SHARE OF COSTS.— 

‘‘(1) CAPITAL PROJECTS.—A grant for a capital project 

under this section shall be for 80 percent of the net capital costs 

of the project. A recipient of a grant under this section may provide additional local matching amounts. 

‘‘(2) REMAINING COSTS.—The remainder of the net project 

cost shall be provided— 

‘‘(A) in cash from non-Government sources other than 

revenues from providing public transportation services; 


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‘‘(B) from revenues derived from the sale of advertising 

and concessions; 

‘‘(C) from an undistributed cash surplus, a replacement 

or depreciation cash fund or reserve, or new capital; or 

‘‘(D) from amounts received under a service agreement 

with a State or local social service agency or private social 

service organization. 

‘‘(g) PERIOD OF AVAILABILITY TO RECIPIENTS.—Amounts made 

available under this section may be obligated by a recipient for 3 

years after the fiscal year in which the amount is apportioned. Not 

later than 30 days after the end of the 3-year period described in 

the preceding sentence, any amount that is not obligated on the last 

day of that period shall be added to the amount that may be apportioned under this section in the next fiscal year. 

‘‘(h) DEFINITIONS.—For purposes of this section: 

‘‘(1) The term ‘State’ means a State of the United States. 

‘‘(2) The term ‘territory’ means the District of Columbia, 

Puerto Rico, the Northern Mariana Islands, Guam, American 

Samoa, and the United States Virgin Islands.’’. 

SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS. 

(a) SECTION 5305.—Section 5305 of title 49, United States 

Code, is amended— 

(1) in subsection (e)(1)(A), by striking ‘‘sections 5304, 5306, 

5315, and 5322’’ and inserting ‘‘section 5304 and 5306’’; 

(2) in subsection (f)— 

(A) in the heading, by striking ‘‘GOVERNMENT’S’’ and 

inserting ‘‘GOVERNMENT’’; and 

(B) by striking ‘‘Government’s’’ and inserting ‘‘Government’’; and 

(3) in subsection (g), by striking ‘‘section 5338(c) for fiscal 

years 2005 through 2012’’ and inserting ‘‘section 5338(a)(2)(A) 

for a fiscal year’’. 

(b) SECTION 5313.—Section 5313(a) of title 49, United States 

Code, is amended— 

(1) in the first sentence, by striking ‘‘subsections 

(a)(5)(C)(iii) and (d)(1) of section 5338’’ and inserting section 

‘‘5338(c)’’; and 

(2) in the second sentence, by striking ‘‘of Transportation’’. 

(c) SECTION 5319.—Section 5319 of title 49, United States Code, 

is amended, in the second sentence— 

(1) by striking ‘‘sections 5307(e), 5309(h), and 5311(g) of 

this title’’ and inserting ‘‘sections 5307(d), 5309(l), and 5311(g)’’; 

and 

(2) by striking ‘‘of the United States’’ and inserting ‘‘made 

by the’’. 

(d) SECTION 5325.—Section 5325(b)(2)(A) of title 49, United 

States Code, is amended by striking ‘‘title 48, Code of Federal Regulations (commonly known as the Federal Acquisition Regulation)’’ 

and inserting ‘‘the Federal Acquisition Regulation, or any successor 

thereto’’. 

(e) SECTION 5330.—Effective 3 years after the effective date of 

the final rules issued by the Secretary of Transportation under section 5329(e) of title 49, United States Code, as amended by this division, section 5330 of title 49, United States Code, is repealed. 


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(f) SECTION 5331.—Section 5331 of title 49, United States Code, 

is amended by striking ‘‘Secretary of Transportation’’ each place 

that term appears and inserting ‘‘Secretary’’. 

(g) SECTION 5332.—Section 5332(c)(1) of title 49, United States 

Code, is amended by striking ‘‘of Transportation’’. 

(h) SECTION 5333.—Section 5333(a) of title 49, United States 

Code, is amended by striking ‘‘sections 3141–3144’’ and inserting 

‘‘sections 3141 through 3144’’. 

(i) SECTION 5334.—Section 5334 of title 49, United States Code, 

is amended— 

(1) in subsection (c)— 

(A) by striking ‘‘Secretary of Transportation’’ each place 

that term appears and inserting ‘‘Secretary’’; and 

(B) in paragraph (1), by striking ‘‘Committees on 

Transportation and Infrastructure and Appropriations of 

the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Appropriations of the 

Senate’’ and inserting ‘‘Committee on Banking, Housing, 

and Urban Affairs and the Committee on Appropriations of 

the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations of the 

House of Representatives’’; 

(2) in subsection (d), by striking ‘‘of Transportation’’; 

(3) in subsection (e), by striking ‘‘of Transportation’’; 

(4) in subsection (f), by striking ‘‘of Transportation’’; 

(5) in subsection (g), in the matter preceding paragraph 

(1)— 

(A) by striking ‘‘of Transportation’’; and 

(B) by striking ‘‘subsection (a)(3) or (4) of this section’’ 

and inserting ‘‘paragraph (3) or (4) of subsection (a)’’; 

(6) in subsection (h)— 

(A) in paragraph (1), in the matter preceding subparagraph (A), by striking ‘‘of Transportation’’; and 

(B) in paragraph (2), by striking ‘‘of this section’’; 

(7) in subsection (i)(1), by striking ‘‘of Transportation’’; and 

(8) in subsection (j), as so redesignated by section 20025 of 

this division, by striking ‘‘Committees on Banking, Housing, 

and Urban Affairs and Appropriations of the Senate and Committees on Transportation and Infrastructure and Appropriations of the House of Representatives’’ and inserting ‘‘Committee 

on Banking, Housing, and Urban Affairs and the Committee on 

Appropriations of the Senate and the Committee on Transportation and Infrastructure and the Committee on Appropriations 

of the House of Representatives’’. 

(j) SECTION 5335.—Section 5335(a) of title 49, United States 

Code, is amended by striking ‘‘of Transportation’’. 

(k) ANALYSIS.—The analysis for chapter 53 of title 49, United 

States Code, is amended to read as follows: 

‘‘Sec. 

‘‘5301. Policies and purposes. 

‘‘5302. Definitions. 

‘‘5303. Metropolitan transportation planning. 

‘‘5304. Statewide and nonmetropolitan transportation planning. 

‘‘5305. Planning programs. 

‘‘5306. Private enterprise participation in metropolitan planning and transportation 

improvement programs and relationship to other limitations. 

‘‘5307. Urbanized area formula grants. 


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‘‘[5308. Repealed.] 

‘‘5309. Fixed guideway capital investment grants. 

‘‘5310. Formula grants for the enhanced mobility of seniors and individuals with disabilities. 

‘‘5311. Formula grants for rural areas. 

‘‘5312. Research, development, demonstration, and deployment projects. 

‘‘5313. Transit cooperative research program. 

‘‘5314. Technical assistance and standards development. 

‘‘5315. Private sector participation. 

‘‘[5316. Repealed.] 

‘‘[5317. Repealed.] 

‘‘5318. Bus testing facility. 

‘‘5319. Bicycle facilities. 

‘‘[5320. Repealed.] 

‘‘5321. Crime prevention and security. 

‘‘5322. Human resources and training. 

‘‘5323. General provisions. 

‘‘5324. Public transportation emergency relief program. 

‘‘5325. Contract requirements. 

‘‘5326. Transit asset management. 

‘‘5327. Project management oversight. 

‘‘[5328. Repealed.] 

‘‘5329. Public transportation safety program. 

‘‘5330. State safety oversight. 

‘‘5331. Alcohol and controlled substances testing. 

‘‘5332. Nondiscrimination. 

‘‘5333. Labor standards. 

‘‘5334. Administrative provisions. 

‘‘5335. National transit database. 

‘‘5336. Apportionment of appropriations for formula grants. 

‘‘5337. State of good repair grants. 

‘‘5338. Authorizations. 

‘‘5339. Bus and bus facilities formula grants. 

‘‘5340. Apportionments based on growing States and high density States formula factors.’’. 

DIVISION C—TRANSPORTATION SAFETY 

AND SURFACE TRANSPORTATION 

POLICY 

TITLE I—MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 

2012 

SEC. 31001. SHORT TITLE. 

This title may be cited as the ‘‘Motor Vehicle and Highway 

Safety Improvement Act of 2012’’ or ‘‘Mariah’s Act’’. 

SEC. 31002. DEFINITION. 

In this title, the term ‘‘Secretary’’ means the Secretary of Transportation. 

Subtitle A—Highway Safety 

SEC. 31101. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—The following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Mass 

Transit Account): 


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(1) HIGHWAY SAFETY PROGRAMS.—For carrying out section 

402 of title 23, United States Code— (A) $235,000,000 for fiscal year 2013; and 

(B) $235,000,000 for fiscal year 2014. 

(2) HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.—For 

carrying out section 403 of title 23, United States Code— (A) $110,500,000 for fiscal year 2013; and 

(B) $113,500,000 for fiscal year 2014. 

(3) NATIONAL PRIORITY SAFETY PROGRAMS.—For carrying 

out section 405 of title 23, United States Code— (A) $265,000,000 for fiscal year 2013; and 

(B) $272,000,000 for fiscal year 2014. 

(4) NATIONAL DRIVER REGISTER.—For the National Highway Traffic Safety Administration to carry out chapter 303 of 

title 49, United States Code— 

(A) $5,000,000 for fiscal year 2013; and 

(B) $5,000,000 for fiscal year 2014. 

(5) HIGH VISIBILITY ENFORCEMENT PROGRAM.—For carrying 

out section 2009 of SAFETEA–LU (23 U.S.C. 402 note)— (A) $29,000,000 for fiscal year 2013; and 

(B) $29,000,000 for fiscal year 2014. 

(6) ADMINISTRATIVE EXPENSES.—For administrative and related operating expenses of the National Highway Traffic Safety 

Administration in carrying out chapter 4 of title 23, United 

States Code, and this subtitle— 

(A) $25,500,000 for fiscal year 2013; and 

(B) $25,500,000 for fiscal year 2014. 

(b) PROHIBITION ON OTHER USES.—Except as otherwise provided in chapter 4 of title 23, United States Code, in this subtitle, 

and in the amendments made by this subtitle, the amounts made 

available from the Highway Trust Fund (other than the Mass Transit Account) for a program under such chapter— 

(1) shall only be used to carry out such program; and 

(2) may not be used by States or local governments for construction purposes. 

(c) APPLICABILITY OF TITLE 23.—Except as otherwise provided 

in chapter 4 of title 23, United States Code, and in this subtitle, 

amounts made available under subsection (a) for fiscal years 2013 

and 2014 shall be available for obligation in the same manner as 

if such funds were apportioned under chapter 1 of title 23, United 

States Code. 

(d) REGULATORY AUTHORITY.—Grants awarded under this subtitle shall be in accordance with regulations issued by the Secretary. 

(e) STATE MATCHING REQUIREMENTS.—If a grant awarded 

under this subtitle requires a State to share in the cost, the aggregate of all expenditures for highway safety activities made during 

any fiscal year by the State and its political subdivisions (exclusive 

of Federal funds) for carrying out the grant (other than planning 

and administration) shall be available for the purpose of crediting 

the State during such fiscal year for the non-Federal share of the 

cost of any project under this subtitle (other than planning or administration) without regard to whether such expenditures were actually made in connection with such project. 

(f) GRANT APPLICATION AND DEADLINE.—To receive a grant 

under this subtitle, a State shall submit an application, and the 


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Secretary shall establish a single deadline for such applications to 

enable the award of grants early in the next fiscal year. 

SEC. 31102. HIGHWAY SAFETY PROGRAMS. 

(a) PROGRAMS INCLUDED.—Section 402(a) of title 23, United 

States Code, is amended to read as follows: 

‘‘(a) PROGRAM REQUIRED.— ‘‘(1) IN GENERAL.—Each State shall have a highway safety 

program, approved by the Secretary, that is designed to reduce 

traffic accidents and the resulting deaths, injuries, and property 

damage. 

‘‘(2) UNIFORM GUIDELINES.—Programs required under 

paragraph (1) shall comply with uniform guidelines, promulgated by the Secretary and expressed in terms of performance 

criteria, that— 

‘‘(A) include programs— 

‘‘(i) to reduce injuries and deaths resulting from 

motor vehicles being driven in excess of posted speed 

limits; 

‘‘(ii) to encourage the proper use of occupant protection devices (including the use of safety belts and child 

restraint systems) by occupants of motor vehicles; 

‘‘(iii) to reduce injuries and deaths resulting from 

persons driving motor vehicles while impaired by alcohol or a controlled substance; 

‘‘(iv) to prevent accidents and reduce injuries and 

deaths resulting from accidents involving motor vehicles and motorcycles; 

‘‘(v) to reduce injuries and deaths resulting from 

accidents involving school buses; 

‘‘(vi) to reduce accidents resulting from unsafe 

driving behavior (including aggressive or fatigued 

driving and distracted driving arising from the use of 

electronic devices in vehicles); and 

‘‘(vii) to improve law enforcement services in motor 

vehicle accident prevention, traffic supervision, and 

post-accident procedures; 

‘‘(B) improve driver performance, including— 

‘‘(i) driver education; 

‘‘(ii) driver testing to determine proficiency to operate motor vehicles; and 

‘‘(iii) driver examinations (physical, mental, and 

driver licensing); 

‘‘(C) improve pedestrian performance and bicycle safety; 

‘‘(D) include provisions for— 

‘‘(i) an effective record system of accidents (including resulting injuries and deaths); 

‘‘(ii) accident investigations to determine the probable causes of accidents, injuries, and deaths; 

‘‘(iii) vehicle registration, operation, and inspection; and 

‘‘(iv) emergency services; and 

‘‘(E) to the extent determined appropriate by the Secretary, are applicable to federally administered areas where 

a Federal department or agency controls the highways or 

supervises traffic operations.’’. 


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(b) ADMINISTRATION OF STATE PROGRAMS.—Section 402(b) of 

title 23, United States Code, is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (D), by striking ‘‘and’’ at the end; 

(B) by redesignating subparagraph (E) as subparagraph (F); 

(C) by inserting after subparagraph (D) the following: 

‘‘(E) beginning on the first day of the first fiscal year 

after the date of enactment of the Motor Vehicle and Highway Safety Improvement Act of 2012 in which a State submits its highway safety plan under subsection (f), provide 

for a data-driven traffic safety enforcement program to prevent traffic violations, crashes, and crash fatalities and injuries in areas most at risk for such incidents, to the satisfaction of the Secretary;’’; and 

(D) in subparagraph (F), as redesignated— 

(i) in clause (i), by inserting ‘‘and high-visibility 

law enforcement mobilizations coordinated by the Secretary’’ after ‘‘mobilizations’’; 

(ii) in clause (iii), by striking ‘‘and’’ at the end; 

(iii) in clause (iv), by striking the period at the end 

and inserting ‘‘; and’’; and 

(iv) by adding at the end the following: 

‘‘(v) ensuring that the State will coordinate its 

highway safety plan, data collection, and information 

systems with the State strategic highway safety plan 

(as defined in section 148(a)).’’; and 

(2) by striking paragraph (3). 

(c) APPROVED HIGHWAY SAFETY PROGRAMS.—Section 402(c) of 

title 23, United States Code, is amended— 

(1) by striking ‘‘(c) Funds authorized’’ and inserting the following: 

‘‘(c) USE OF FUNDS.— ‘‘(1) IN GENERAL.—Funds authorized’’; 

(2) by striking ‘‘Such funds’’ and inserting the following: 

‘‘(2) APPORTIONMENT.—Except for amounts identified in 

section 403(f), funds described in paragraph (1)’’; 

(3) by striking ‘‘The Secretary shall not’’ and all that follows through ‘‘subsection, a highway safety program’’ and inserting ‘‘A highway safety program’’; 

(4) by inserting ‘‘A State may use the funds apportioned 

under this section, in cooperation with neighboring States, for 

highway safety programs or related projects that may confer 

benefits on such neighboring States.’’ after ‘‘in every State.’’; 

(5) by striking ‘‘50 per centum’’ and inserting ‘‘20 percent’’; 

and 

(6) by striking ‘‘The Secretary shall promptly’’ and all that 

follows and inserting the following: 

‘‘(3) REAPPORTIONMENT.—The Secretary shall promptly apportion the funds withheld from a State’s apportionment to the 

State if the Secretary approves the State’s highway safety program or determines that the State has begun implementing an 

approved program, as appropriate, not later than July 31st of 

the fiscal year for which the funds were withheld. If the Secretary determines that the State did not correct its failure withVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00344 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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in such period, the Secretary shall reapportion the withheld 

funds to the other States in accordance with the formula specified in paragraph (2) not later than the last day of the fiscal 

year. 

‘‘(4) AUTOMATED TRAFFIC ENFORCEMENT SYSTEMS.— ‘‘(A) PROHIBITION.—A State may not expend funds apportioned to that State under this section to carry out a 

program to purchase, operate, or maintain an automated 

traffic enforcement system. 

‘‘(B) AUTOMATED TRAFFIC ENFORCEMENT SYSTEM DE- FINED.—In this paragraph, the term ‘automated traffic enforcement system’ means any camera which captures an 

image of a vehicle for the purposes only of red light and 

speed enforcement, and does not include hand held radar 

and other devices operated by law enforcement officers to 

make an on-the-scene traffic stop, issue a traffic citation, or 

other enforcement action at the time of the violation.’’. 

(d) USE OF HIGHWAY SAFETY PROGRAM FUNDS.—Section 402(g) 

of title 23, United States Code, is amended to read as follows: 

‘‘(g) SAVINGS PROVISION.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph (2), 

nothing in this section may be construed to authorize the appropriation or expenditure of funds for— 

‘‘(A) highway construction, maintenance, or design 

(other than design of safety features of highways to be incorporated into guidelines); or 

‘‘(B) any purpose for which funds are authorized under 

section 403. 

‘‘(2) DEMONSTRATION PROJECTS.—A State may use funds 

made available to carry out this section to assist in demonstration projects carried out by the Secretary under section 403.’’. 

(e) IN GENERAL.—Section 402 of title 23, United States Code, is 

amended— 

(1) by striking subsections (k) and (m); 

(2) by redesignating subsections (i) and (j) as subsections 

(h) and (i), respectively; and 

(3) by redesignating subsection (l) as subsection (j). 

(f) HIGHWAY SAFETY PLAN AND REPORTING REQUIREMENTS.— Section 402 of title 23, United States Code, as amended by this section, is further amended by adding at the end the following: 

‘‘(k) HIGHWAY SAFETY PLAN AND REPORTING REQUIREMENTS.— 

‘‘(1) IN GENERAL.—With respect to fiscal year 2014, and 

each fiscal year thereafter, the Secretary shall require each 

State, as a condition of the approval of the State’s highway 

safety program for that fiscal year, to develop and submit to the 

Secretary for approval a highway safety plan that complies 

with the requirements under this subsection. 

‘‘(2) TIMING.—Each State shall submit to the Secretary the 

highway safety plan not later than July 1st of the fiscal year 

preceding the fiscal year to which the plan applies. 

‘‘(3) CONTENTS.—State highway safety plans submitted 

under paragraph (1) shall include— 

‘‘(A) performance measures required by the Secretary or 

otherwise necessary to support additional State safety 

goals, including— 


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‘‘(i) documentation of current safety levels for each 

performance measure; 

‘‘(ii) quantifiable annual performance targets for 

each performance measure; and 

‘‘(iii) a justification for each performance target, 

that explains why each target is appropriate and evidence-based; 

‘‘(B) a strategy for programming funds apportioned to 

the State under this section on projects and activities that 

will allow the State to meet the performance targets described in subparagraph (A); 

‘‘(C) data and data analysis supporting the effectiveness of proposed countermeasures; 

‘‘(D) a description of any Federal, State, local, or private funds that the State plans to use, in addition to funds 

apportioned to the State under this section, to carry out the 

strategy described in subparagraph (B); 

‘‘(E) for the fiscal year preceding the fiscal year to 

which the plan applies, a report on the State’s success in 

meeting State safety goals and performance targets set forth 

in the previous year’s highway safety plan; and 

‘‘(F) an application for any additional grants available 

to the State under this chapter. 

‘‘(4) PERFORMANCE MEASURES.—For the first highway safety plan submitted under this subsection, the performance measures required by the Secretary under paragraph (2)(A) shall be 

limited to those developed by the National Highway Traffic 

Safety Administration and the Governor’s Highway Safety Association and described in the report, ‘Traffic Safety Performance Measures for States and Federal Agencies’ (DOT HS 811 

025). For subsequent highway safety plans, the Secretary shall 

coordinate with the Governor’s Highway Safety Association in 

making revisions to the set of required performance measures. 

‘‘(5) REVIEW OF HIGHWAY SAFETY PLANS.— 

‘‘(A) IN GENERAL.—Not later than 60 days after the 

date on which a State’s highway safety plan is received by 

the Secretary, the Secretary shall review and approve or 

disapprove the plan. 

‘‘(B) APPROVALS AND DISAPPROVALS.— 

‘‘(i) APPROVALS.—The Secretary shall approve a 

State’s highway safety plan if the Secretary determines 

that— 

‘‘(I) the plan and the performance targets contained in the plan are evidence-based and supported by data; and 

‘‘(II) the plan, once implemented, will allow 

the State to meet the State’s performance targets. 

‘‘(ii) DISAPPROVALS.—The Secretary shall disapprove a State’s highway safety plan if the Secretary 

determines that— 

‘‘(I) the plan and the performance targets contained in the plan are not evidence-based or supported by data; or 


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‘‘(II) the plan does not provide for programming of funding in a manner sufficient to allow 

the State to meet the State’s performance targets. 

‘‘(C) ACTIONS UPON DISAPPROVAL.—If the Secretary disapproves a State’s highway safety plan, the Secretary 

shall— 

‘‘(i) inform the State of the reasons for such disapproval; and 

‘‘(ii) require the State to resubmit the plan with 

any modifications that the Secretary determines to be 

necessary. 

‘‘(D) REVIEW OF RESUBMITTED PLANS.—If the Secretary 

requires a State to resubmit a highway safety plan, with 

modifications, the Secretary shall review and approve or 

disapprove the modified plan not later than 30 days after 

the date on which the Secretary receives such plan. 

‘‘(E) PUBLIC NOTICE.—A State shall make the State’s 

highway safety plan, and decisions of the Secretary concerning approval or disapproval of a revised plan, available to the public.’’. 

(g) TEEN TRAFFIC SAFETY PROGRAM.—Section 402 of title 23, 

United States Code, as amended by this section, is further amended 

by adding at the end the following: 

‘‘(m) TEEN TRAFFIC SAFETY.— 

‘‘(1) IN GENERAL.—Subject to the requirements of a State’s 

highway safety plan, as approved by the Secretary under subsection (k), a State may use a portion of the amounts received 

under this section to implement statewide efforts to improve 

traffic safety for teen drivers. 

‘‘(2) USE OF FUNDS.—Statewide efforts under paragraph 

(1)— 

‘‘(A) shall include peer-to-peer education and prevention strategies in schools and communities designed to— 

‘‘(i) increase safety belt use; 

‘‘(ii) reduce speeding; 

‘‘(iii) reduce impaired and distracted driving; 

‘‘(iv) reduce underage drinking; and 

‘‘(v) reduce other behaviors by teen drivers that 

lead to injuries and fatalities; and 

‘‘(B) may include— 

‘‘(i) working with student-led groups and school 

advisors to plan and implement teen traffic safety programs; 

‘‘(ii) providing subgrants to schools throughout the 

State to support the establishment and expansion of 

student groups focused on teen traffic safety; 

‘‘(iii) providing support, training, and technical assistance to establish and expand school and community 

safety programs for teen drivers; 

‘‘(iv) creating statewide or regional websites to publicize and circulate information on teen safety programs; 

‘‘(v) conducting outreach and providing educational resources for parents; 


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‘‘(vi) establishing State or regional advisory councils comprised of teen drivers to provide input and recommendations to the governor and the governor’s safety representative on issues related to the safety of teen 

drivers; 

‘‘(vii) collaborating with law enforcement; and 

‘‘(viii) establishing partnerships and promoting coordination among community stakeholders, including 

public, not-for-profit, and for profit entities.’’. 

(h) BIENNIAL REPORT TO CONGRESS.—Section 402 of title 23, 

United States Code, as amended by this section, is further amended 

by adding at the end the following: 

‘‘(n) BIENNIAL REPORT TO CONGRESS.—Not later than October 

1, 2015, and biennially thereafter, the Secretary shall submit a report to the Committee on Transportation and Infrastructure of the 

House of Representatives and the Committee on Commerce, Science, 

and Transportation of the Senate that contains— 

‘‘(1) an evaluation of each State’s performance with respect 

to the State’s highway safety plan under subsection (k) and performance targets set by the States in such plans; and 

‘‘(2) such recommendations as the Secretary may have for 

improvements to activities carried out under subsection (k).’’. 

SEC. 31103. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT. 

Section 403 of title 23, United States Code, is amended— 

(1) by striking subsections (a) through (f) and inserting the 

following: 

‘‘(a) DEFINED TERM.—In this section, the term ‘Federal laboratory’ includes— 

‘‘(1) a government-owned, government-operated laboratory; 

and 

‘‘(2) a government-owned, contractor-operated laboratory. 

‘‘(b) GENERAL AUTHORITY.— 

‘‘(1) RESEARCH AND DEVELOPMENT ACTIVITIES.—The Secretary may conduct research and development activities, including demonstration projects and the collection and analysis of 

highway and motor vehicle safety data and related information 

needed to carry out this section, with respect to— 

‘‘(A) all aspects of highway and traffic safety systems 

and conditions relating to— 

‘‘(i) vehicle, highway, driver, passenger, motorcyclist, bicyclist, and pedestrian characteristics; 

‘‘(ii) accident causation and investigations; 

‘‘(iii) communications; and 

‘‘(iv) emergency medical services, including the 

transportation of the injured; 

‘‘(B) human behavioral factors and their effect on highway and traffic safety, including— 

‘‘(i) driver education; 

‘‘(ii) impaired driving; and 

‘‘(iii) distracted driving; 

‘‘(C) an evaluation of the effectiveness of countermeasures to increase highway and traffic safety, including 

occupant protection and alcohol- and drug-impaired driving technologies and initiatives; 


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‘‘(D) the development of technologies to detect drug impaired drivers; 

‘‘(E) research on, evaluations of, and identification of 

best practices related to driver education programs (including driver education curricula, instructor training and certification, program administration, and delivery mechanisms) and make recommendations for harmonizing driver 

education and multistage graduated licensing systems; and 

‘‘(F) the effect of State laws on any aspects, activities, 

or programs described in subparagraphs (A) through (E). 

‘‘(2) COOPERATION, GRANTS, AND CONTRACTS.—The Secretary may carry out this section— 

‘‘(A) independently; 

‘‘(B) in cooperation with other Federal departments, 

agencies, and instrumentalities and Federal laboratories; 

‘‘(C) by entering into contracts, cooperative agreements, 

and other transactions with the National Academy of 

Sciences, any Federal laboratory, State or local agency, authority, association, institution, or person (as defined in 

chapter 1 of title 1); or 

‘‘(D) by making grants to the National Academy of 

Sciences, any Federal laboratory, State or local agency, authority, association, institution, or person (as defined in 

chapter 1 of title 1). 

‘‘(c) COLLABORATIVE RESEARCH AND DEVELOPMENT.— 

‘‘(1) IN GENERAL.—To encourage innovative solutions to 

highway safety problems, stimulate voluntary improvements in 

highway safety, and stimulate the marketing of new highway 

safety related technology by private industry, the Secretary is 

authorized to carry out, on a cost-shared basis, collaborative research and development with— 

‘‘(A) non-Federal entities, including State and local 

governments, colleges, universities, corporations, partnerships, sole proprietorships, organizations, and trade associations that are incorporated or established under the laws 

of any State or the United States; and 

‘‘(B) Federal laboratories. 

‘‘(2) AGREEMENTS.—In carrying out this subsection, the Secretary may enter into cooperative research and development 

agreements (as defined in section 12 of the Stevenson-Wydler 

Technology Innovation Act of 1980 (15 U.S.C. 3710a)) in which 

the Secretary provides not more than 50 percent of the cost of 

any research or development project under this subsection. 

‘‘(3) USE OF TECHNOLOGY.—The research, development, or 

use of any technology pursuant to an agreement under this subsection, including the terms under which technology may be licensed and the resulting royalties may be distributed, shall be 

subject to the provisions of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.). 

‘‘(d) TITLE TO EQUIPMENT.—In furtherance of the purposes set 

forth in section 402, the Secretary may vest title to equipment purchased for demonstration projects with funds authorized under this 

section to State or local agencies on such terms and conditions as 

the Secretary determines to be appropriate. 


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‘‘(e) PROHIBITION ON CERTAIN DISCLOSURES.—Any report of the 

National Highway Traffic Safety Administration, or of any officer, 

employee, or contractor of the National Highway Traffic Safety Administration, relating to any highway traffic accident or the investigation of such accident conducted pursuant to this chapter or 

chapter 301 may only be made available to the public in a manner 

that does not identify individuals. 

‘‘(f) COOPERATIVE RESEARCH AND EVALUATION.— ‘‘(1) ESTABLISHMENT AND FUNDING.—Notwithstanding the apportionment formula set forth in section 402(c)(2), $2,500,000 

of the total amount available for apportionment to the States 

for highway safety programs under subsection 402(c) in each 

fiscal year shall be available for expenditure by the Secretary, 

acting through the Administrator of the National Highway 

Traffic Safety Administration, for a cooperative research and 

evaluation program to research and evaluate priority highway 

safety countermeasures. 

‘‘(2) ADMINISTRATION.—The program established under 

paragraph (1)— 

‘‘(A) shall be administered by the Administrator of the 

National Highway Traffic Safety Administration; and 

‘‘(B) shall be jointly managed by the Governors Highway Safety Association and the National Highway Traffic 

Safety Administration.’’; and 

(2) by adding at the end the following: 

‘‘(h) IN-VEHICLE ALCOHOL DETECTION DEVICE RESEARCH.— ‘‘(1) IN GENERAL.—The Administrator of the National Highway Traffic Safety Administration may carry out a collaborative research effort under chapter 301 of title 49 on in-vehicle 

technology to prevent alcohol-impaired driving. 

‘‘(2) FUNDING.—Funds provided under section 405 may be 

made to be used by the Secretary to conduct the research described in paragraph (1). 

‘‘(3) PRIVACY PROTECTION.—If the Administrator utilizes the 

authority under paragraph (1), the Administrator shall not develop requirements for any device or means of technology to be 

installed in an automobile intended for retail sale that records 

a driver’s blood alcohol concentration. 

‘‘(4) REPORTS.—If the Administrator conducts the research 

authorized under paragraph (1), the Administrator shall submit an annual report to the Committee on Commerce, Science, 

and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, and 

Committee on Science, Space, and Technology of the House of 

Representatives that— 

‘‘(A) describes the progress made in carrying out the 

collaborative research effort; and 

‘‘(B) includes an accounting for the use of Federal 

funds obligated or expended in carrying out that effort. 

‘‘(5) DEFINITIONS.—In this subsection: 

‘‘(A) ALCOHOL-IMPAIRED DRIVING.—The term ‘alcoholimpaired driving’ means the operation of a motor vehicle 

(as defined in section 30102(a)(6) of title 49) by an individual whose blood alcohol content is at or above the legal 

limit. 


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‘‘(B) LEGAL LIMIT.—The term ‘legal limit’ means a 

blood alcohol concentration of 0.08 percent or greater (as 

set forth in section 163(a)) or such other percentage limitation as may be established by applicable Federal, State, or 

local law.’’. 

SEC. 31104. NATIONAL DRIVER REGISTER. 

Section 30302(b) of title 49, United States Code, is amended by 

adding at the end the following: ‘‘The Secretary shall make continual improvements to modernize the Register’s data processing 

system.’’. 

SEC. 31105. NATIONAL PRIORITY SAFETY PROGRAMS. 

(a) IN GENERAL.—Section 405 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 405. National priority safety programs 

‘‘(a) GENERAL AUTHORITY.—Subject to the requirements of this 

section, the Secretary of Transportation shall manage programs to 

address national priorities for reducing highway deaths and injuries. Funds shall be allocated according to the priorities set forth in 

paragraphs (1) and (2). 

‘‘(1) GRANTS TO STATES.— 

‘‘(A) OCCUPANT PROTECTION.—16 percent of the funds 

provided under this section in each fiscal year shall be allocated among States that adopt and implement effective occupant protection programs to reduce highway deaths and 

injuries resulting from individuals riding unrestrained or 

improperly restrained in motor vehicles (as described in 

subsection (b)). 

‘‘(B) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.—14.5 percent of the funds provided under 

this section in each fiscal year shall be allocated among 

States that meet the requirements of the State traffic safety 

information system improvements (as described in subsection (c)). 

‘‘(C) IMPAIRED DRIVING COUNTERMEASURES.—52.5 percent of the funds provided under this section in each fiscal 

year shall be allocated among States that meet the requirements of the impaired driving countermeasures (as described in subsection (d)). 

‘‘(D) DISTRACTED DRIVING.—8.5 percent of the funds 

provided under this section in each fiscal year shall be allocated among States that adopt and implement effective 

laws to reduce distracted driving (as described in subsection (e)). 

‘‘(E) MOTORCYCLIST SAFETY.—1.5 percent of the funds 

provided under this section in each fiscal year shall be allocated among States that implement motorcyclist safety programs (as described in subsection (f)). 

‘‘(F) STATE GRADUATED DRIVER LICENSING LAWS.—5 

percent of the funds provided under this section in each fiscal year shall be allocated among States that adopt and 

implement graduated driver licensing laws (as described in 

subsection (g)). 


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‘‘(G) TRANSFERS.—Notwithstanding subparagraphs (A) 

through (F), the Secretary may reallocate, before the last 

day of any fiscal year, any amounts remaining available to 

carry out any of the activities described in subsections (b) 

through (g) to increase the amount made available to carry 

out any of the other activities described in such subsections, 

or the amount made available under section 402, in order 

to ensure, to the maximum extent possible, that all such 

amounts are obligated during such fiscal year. 

‘‘(H) MAINTENANCE OF EFFORT.— 

‘‘(i) REQUIREMENTS.—No grant may be made to a 

State in any fiscal year under subsection (b), (c), or (d) 

unless the State enters into such agreements with the 

Secretary as the Secretary may require to ensure that 

the State will maintain its aggregate expenditures from 

all State and local sources for programs described in 

those sections at or above the average level of such expenditures in its 2 fiscal years preceding the date of enactment of the Motor Vehicle and Highway Safety Improvement Act of 2012. 

‘‘(ii) WAIVER.—Upon the request of a State, the Secretary may waive or modify the requirements under 

clause (i) for not more than 1 fiscal year if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances. 

‘‘(2) OTHER PRIORITY PROGRAMS.—Funds provided under 

this section in each fiscal year may be used for research into 

technology to prevent alcohol-impaired driving (as described in 

subsection 403(h)). 

‘‘(b) OCCUPANT PROTECTION GRANTS.— 

‘‘(1) GENERAL AUTHORITY.—Subject to the requirements 

under this subsection, the Secretary of Transportation shall 

award grants to States that adopt and implement effective occupant protection programs to reduce highway deaths and injuries resulting from individuals riding unrestrained or improperly restrained in motor vehicles. 

‘‘(2) FEDERAL SHARE.—The Federal share of the costs of activities funded using amounts from grants awarded under this 

subsection may not exceed 80 percent for each fiscal year for 

which a State receives a grant. 

‘‘(3) ELIGIBILITY.— 

‘‘(A) HIGH SEAT BELT USE RATE.—A State with an observed seat belt use rate of 90 percent or higher, based on 

the most recent data from a survey that conforms with national criteria established by the National Highway Traffic 

Safety Administration, shall be eligible for a grant in a fiscal year if the State— 

‘‘(i) submits an occupant protection plan during 

the first fiscal year; 

‘‘(ii) participates in the Click It or Ticket national 

mobilization; 

‘‘(iii) has an active network of child restraint inspection stations; and 


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‘‘(iv) has a plan to recruit, train, and maintain a 

sufficient number of child passenger safety technicians. 

‘‘(B) LOWER SEAT BELT USE RATE.—A State with an observed seat belt use rate below 90 percent, based on the 

most recent data from a survey that conforms with national 

criteria established by the National Highway Traffic Safety 

Administration, shall be eligible for a grant in a fiscal year 

if— 

‘‘(i) the State meets all of the requirements under 

clauses (i) through (iv) of subparagraph (A); and 

‘‘(ii) the Secretary determines that the State meets 

at least 3 of the following criteria: 

‘‘(I) The State conducts sustained (on-going 

and periodic) seat belt enforcement at a defined 

level of participation during the year. 

‘‘(II) The State has enacted and enforces a primary enforcement seat belt use law. 

‘‘(III) The State has implemented countermeasure programs for high-risk populations, such 

as drivers on rural roadways, unrestrained nighttime drivers, or teenage drivers. 

‘‘(IV) The State has enacted and enforces occupant protection laws requiring front and rear occupant protection use by all occupants in an age-appropriate restraint. 

‘‘(V) The State has implemented a comprehensive occupant protection program in which the 

State has— 

‘‘(aa) conducted a program assessment; 

‘‘(bb) developed a statewide strategic plan; 

‘‘(cc) designated an occupant protection coordinator; and 

‘‘(dd) established a statewide occupant 

protection task force. 

‘‘(VI) The State— 

‘‘(aa) completed an assessment of its occupant protection program during the 3-year period preceding the grant year; or 

‘‘(bb) will conduct such an assessment 

during the first year of the grant. 

‘‘(4) USE OF GRANT AMOUNTS.— 

‘‘(A) IN GENERAL.—Grant funds received pursuant to 

this subsection may be used to— 

‘‘(i) carry out a program to support high-visibility 

enforcement mobilizations, including paid media that 

emphasizes publicity for the program, and law enforcement; 

‘‘(ii) carry out a program to train occupant protection safety professionals, police officers, fire and emergency medical personnel, educators, and parents concerning all aspects of the use of child restraints and occupant protection; 

‘‘(iii) carry out a program to educate the public 

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straints, including related equipment and information 

systems; 

‘‘(iv) carry out a program to provide community 

child passenger safety services, including programs 

about proper seating positions for children and how to 

reduce the improper use of child restraints; 

‘‘(v) purchase and distribute child restraints to 

low-income families, provided that not more than 5 

percent of the funds received in a fiscal year are used 

for such purpose; and 

‘‘(vi) establish and maintain information systems 

containing data concerning occupant protection, including the collection and administration of child passenger safety and occupant protection surveys. 

‘‘(B) HIGH SEAT BELT USE RATE.—A State that is eligible for funds under paragraph (3)(A) may use up to 75 percent of such funds for any project or activity eligible for 

funding under section 402. 

‘‘(5) GRANT AMOUNT.—The allocation of grant funds to a 

State under this subsection for a fiscal year shall be in proportion to the State’s apportionment under section 402 for fiscal 

year 2009. 

‘‘(6) DEFINITIONS.—In this subsection: 

‘‘(A) CHILD RESTRAINT.—The term ‘child restraint’ 

means any device (including child safety seat, booster seat, 

harness, and excepting seat belts) that is— 

‘‘(i) designed for use in a motor vehicle to restrain, 

seat, or position children who weigh 65 pounds (30 

kilograms) or less; and 

‘‘(ii) certified to the Federal motor vehicle safety 

standard prescribed by the National Highway Traffic 

Safety Administration for child restraints. 

‘‘(B) SEAT BELT.—The term ‘seat belt’ means— 

‘‘(i) with respect to open-body motor vehicles, including convertibles, an occupant restraint system consisting of a lap belt or a lap belt and a detachable 

shoulder belt; and 

‘‘(ii) with respect to other motor vehicles, an occupant restraint system consisting of integrated lap and 

shoulder belts. 

‘‘(c) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.— 

‘‘(1) GENERAL AUTHORITY.—Subject to the requirements 

under this subsection, the Secretary of Transportation shall 

award grants to States to support the development and implementation of effective State programs that— 

‘‘(A) improve the timeliness, accuracy, completeness, 

uniformity, integration, and accessibility of the State safety 

data that is needed to identify priorities for Federal, State, 

and local highway and traffic safety programs; 

‘‘(B) evaluate the effectiveness of efforts to make such 

improvements; 

‘‘(C) link the State data systems, including traffic 

records, with other data systems within the State, such as 

systems that contain medical, roadway, and economic data; 


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‘‘(D) improve the compatibility and interoperability of 

the data systems of the State with national data systems 

and data systems of other States; and 

‘‘(E) enhance the ability of the Secretary to observe and 

analyze national trends in crash occurrences, rates, outcomes, and circumstances. 

‘‘(2) FEDERAL SHARE.—The Federal share of the cost of 

adopting and implementing in a fiscal year a State program described in this subsection may not exceed 80 percent. 

‘‘(3) ELIGIBILITY.—A State is not eligible for a grant under 

this subsection in a fiscal year unless the State demonstrates, 

to the satisfaction of the Secretary, that the State— 

‘‘(A) has a functioning traffic records coordinating committee (referred to in this paragraph as ‘TRCC’) that meets 

at least 3 times each year; 

‘‘(B) has designated a TRCC coordinator; 

‘‘(C) has established a State traffic record strategic 

plan that has been approved by the TRCC and describes 

specific quantifiable and measurable improvements anticipated in the State’s core safety databases, including crash, 

citation or adjudication, driver, emergency medical services 

or injury surveillance system, roadway, and vehicle databases; 

‘‘(D) has demonstrated quantitative progress in relation 

to the significant data program attribute of— 

‘‘(i) accuracy; 

‘‘(ii) completeness; 

‘‘(iii) timeliness; 

‘‘(iv) uniformity; 

‘‘(v) accessibility; or 

‘‘(vi) integration of a core highway safety database; 

and 

‘‘(E) has certified to the Secretary that an assessment 

of the State’s highway safety data and traffic records system was conducted or updated during the preceding 5 

years. 

‘‘(4) USE OF GRANT AMOUNTS.—Grant funds received by a 

State under this subsection shall be used for making data program improvements to core highway safety databases related to 

quantifiable, measurable progress in any of the 6 significant 

data program attributes set forth in paragraph (3)(D). 

‘‘(5) GRANT AMOUNT.—The allocation of grant funds to a 

State under this subsection for a fiscal year shall be in proportion to the State’s apportionment under section 402 for fiscal 

year 2009. 

‘‘(d) IMPAIRED DRIVING COUNTERMEASURES.— 

‘‘(1) IN GENERAL.—Subject to the requirements under this 

subsection, the Secretary of Transportation shall award grants 

to States that adopt and implement— 

‘‘(A) effective programs to reduce driving under the influence of alcohol, drugs, or the combination of alcohol and 

drugs; or 

‘‘(B) alcohol-ignition interlock laws. 

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section may not exceed 80 percent in any fiscal year in which 

the State receives a grant. 

‘‘(3) ELIGIBILITY.— ‘‘(A) LOW-RANGE STATES.—Low-range States shall be 

eligible for a grant under this subsection. 

‘‘(B) MID-RANGE STATES.—A mid-range State shall be 

eligible for a grant under this subsection if— 

‘‘(i) a statewide impaired driving task force in the 

State developed a statewide plan during the most recent 3 calendar years to address the problem of impaired driving; or 

‘‘(ii) the State will convene a statewide impaired 

driving task force to develop such a plan during the 

first year of the grant. 

‘‘(C) HIGH-RANGE STATES.—A high-range State shall be 

eligible for a grant under this subsection if the State— 

‘‘(i)(I) conducted an assessment of the State’s impaired driving program during the most recent 3 calendar years; or 

‘‘(II) will conduct such an assessment during the 

first year of the grant; 

‘‘(ii) convenes, during the first year of the grant, a 

statewide impaired driving task force to develop a 

statewide plan that— 

‘‘(I) addresses any recommendations from the 

assessment conducted under clause (i); 

‘‘(II) includes a detailed plan for spending any 

grant funds provided under this subsection; and 

‘‘(III) describes how such spending supports 

the statewide program; and 

‘‘(iii)(I) submits the statewide plan to the National 

Highway Traffic Safety Administration during the first 

year of the grant for the agency’s review and approval; 

‘‘(II) annually updates the statewide plan in each 

subsequent year of the grant; and 

‘‘(III) submits each updated statewide plan for the 

agency’s review and comment. 

‘‘(4) USE OF GRANT AMOUNTS.— ‘‘(A) REQUIRED PROGRAMS.—High-range States shall 

use grant funds for— 

‘‘(i) high visibility enforcement efforts; and 

‘‘(ii) any of the activities described in subparagraph (B) if— 

‘‘(I) the activity is described in the statewide 

plan; and 

‘‘(II) the Secretary approves the use of funding 

for such activity. 

‘‘(B) AUTHORIZED PROGRAMS.—Medium-range and lowrange States may use grant funds for— 

‘‘(i) any of the purposes described in subparagraph 

(A); 

‘‘(ii) hiring a full-time or part-time impaired driving coordinator of the State’s activities to address the 

enforcement and adjudication of laws regarding driving while impaired by alcohol; 


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‘‘(iii) court support of high visibility enforcement 

efforts, training and education of criminal justice professionals (including law enforcement, prosecutors, 

judges, and probation officers) to assist such professionals in handling impaired driving cases, hiring 

traffic safety resource prosecutors, hiring judicial outreach liaisons, and establishing driving while intoxicated courts; 

‘‘(iv) alcohol ignition interlock programs; 

‘‘(v) improving blood-alcohol concentration testing 

and reporting; 

‘‘(vi) paid and earned media in support of high visibility enforcement efforts, and conducting standardized field sobriety training, advanced roadside impaired driving evaluation training, and drug recognition expert training for law enforcement, and equipment and related expenditures used in connection with 

impaired driving enforcement in accordance with criteria established by the National Highway Traffic 

Safety Administration; 

‘‘(vii) training on the use of alcohol screening and 

brief intervention; 

‘‘(viii) developing impaired driving information 

systems; and 

‘‘(ix) costs associated with a 24-7 sobriety program. 

‘‘(C) OTHER PROGRAMS.—Low-range States may use 

grant funds for any expenditure designed to reduce impaired driving based on problem identification. Medium 

and high-range States may use funds for such expenditures 

upon approval by the Secretary. 

‘‘(5) GRANT AMOUNT.—Subject to paragraph (6), the allocation of grant funds to a State under this section for a fiscal year 

shall be in proportion to the State’s apportionment under section 402(c) for fiscal year 2009. 

‘‘(6) GRANTS TO STATES THAT ADOPT AND ENFORCE MANDA- TORY ALCOHOL-IGNITION INTERLOCK LAWS.— ‘‘(A) IN GENERAL.—The Secretary shall make a separate 

grant under this subsection to each State that adopts and 

is enforcing a mandatory alcohol-ignition interlock law for 

all individuals convicted of driving under the influence of 

alcohol or of driving while intoxicated. 

‘‘(B) USE OF FUNDS.—Grants authorized under subparagraph (A) may be used by recipient States for any eligible activities under this subsection or section 402. 

‘‘(C) ALLOCATION.—Amounts made available under this 

paragraph shall be allocated among States described in 

subparagraph (A) on the basis of the apportionment formula set forth in section 402(c). 

‘‘(D) FUNDING.—Not more than 15 percent of the 

amounts made available to carry out this subsection in a 

fiscal year shall be made available by the Secretary for 

making grants under this paragraph. 

‘‘(7) DEFINITIONS.—In this subsection: 

‘‘(A) 24-7 SOBRIETY PROGRAM.—The term ‘24-7 sobriety 

program’ means a State law or program that authorizes a 


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State court or a State agency, as a condition of sentence, 

probation, parole, or work permit, to— 

‘‘(i) require an individual who plead guilty or was 

convicted of driving under the influence of alcohol or 

drugs to totally abstain from alcohol or drugs for a period of time; and 

‘‘(ii) require the individual to be subject to testing 

for alcohol or drugs— 

‘‘(I) at least twice per day; 

‘‘(II) by continuous transdermal alcohol monitoring via an electronic monitoring device; or 

‘‘(III) by an alternate method with the concurrence of the Secretary. 

‘‘(B) AVERAGE IMPAIRED DRIVING FATALITY RATE.—The 

term ‘average impaired driving fatality rate’ means the 

number of fatalities in motor vehicle crashes involving a 

driver with a blood alcohol concentration of at least 0.08 

percent for every 100,000,000 vehicle miles traveled, based 

on the most recently reported 3 calendar years of final data 

from the Fatality Analysis Reporting System, as calculated 

in accordance with regulations prescribed by the Administrator of the National Highway Traffic Safety Administration. 

‘‘(C) HIGH-RANGE STATE.—The term ‘high-range State’ 

means a State that has an average impaired driving fatality rate of 0.60 or higher. 

‘‘(D) LOW-RANGE STATE.—The term ‘low-range State’ 

means a State that has an average impaired driving fatality rate of 0.30 or lower. 

‘‘(E) MID-RANGE STATE.—The term ‘mid-range State’ 

means a State that has an average impaired driving fatality rate that is higher than 0.30 and lower than 0.60. 

‘‘(e) DISTRACTED DRIVING GRANTS.— ‘‘(1) IN GENERAL.—The Secretary shall award a grant 

under this subsection to any State that enacts and enforces a 

statute that meets the requirements set forth in paragraphs (2) 

and (3). 

‘‘(2) PROHIBITION ON TEXTING WHILE DRIVING.—A State 

statute meets the requirements set forth in this paragraph if the 

statute— 

‘‘(A) prohibits drivers from texting through a personal 

wireless communications device while driving; 

‘‘(B) makes violation of the statute a primary offense; 

and 

‘‘(C) establishes— 

‘‘(i) a minimum fine for a first violation of the statute; and 

‘‘(ii) increased fines for repeat violations. 

‘‘(3) PROHIBITION ON YOUTH CELL PHONE USE WHILE DRIV- ING.—A State statute meets the requirements set forth in this 

paragraph if the statute— 

‘‘(A) prohibits a driver who is younger than 18 years of 

age from using a personal wireless communications device 

while driving; 

‘‘(B) makes violation of the statute a primary offense; 


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‘‘(C) requires distracted driving issues to be tested as 

part of the State driver’s license examination; and 

‘‘(D) establishes— 

‘‘(i) a minimum fine for a first violation of the statute; and 

‘‘(ii) increased fines for repeat violations. 

‘‘(4) PERMITTED EXCEPTIONS.—A statute that meets the requirements set forth in paragraphs (2) and (3) may provide exceptions for— 

‘‘(A) a driver who uses a personal wireless communications device to contact emergency services; 

‘‘(B) emergency services personnel who use a personal 

wireless communications device while— 

‘‘(i) operating an emergency services vehicle; and 

‘‘(ii) engaged in the performance of their duties as 

emergency services personnel; and 

‘‘(C) an individual employed as a commercial motor vehicle driver or a school bus driver who uses a personal 

wireless communications device within the scope of such individual’s employment if such use is permitted under the 

regulations promulgated pursuant to section 31152 of title 

49. 

‘‘(5) USE OF GRANT FUNDS.—Of the amounts received by a 

State under this subsection— 

‘‘(A) at least 50 percent shall be used— 

‘‘(i) to educate the public through advertising containing information about the dangers of texting or 

using a cell phone while driving; 

‘‘(ii) for traffic signs that notify drivers about the 

distracted driving law of the State; or 

‘‘(iii) for law enforcement costs related to the enforcement of the distracted driving law; and 

‘‘(B) up to 50 percent may be used for any eligible 

project or activity under section 402. 

‘‘(6) ADDITIONAL GRANTS.—In the first fiscal year that 

grants are awarded under this subsection, the Secretary may 

use up to 25 percent of the amounts available for grants under 

this subsection to award grants to States that— 

‘‘(A) enacted statutes before the date of enactment of the 

Motor Vehicle and Highway Safety Improvement Act of 

2012, which meet the requirements set forth in subparagraphs (A) and (B) of paragraph (2); and 

‘‘(B) are otherwise ineligible for a grant under this subsection. 

‘‘(7) ALLOCATION TO SUPPORT STATE DISTRACTED DRIVING

LAWS.—Of the amounts available under this subsection in a fiscal year for distracted driving grants, the Secretary may expend 

up to $5,000,000 for the development and placement of broadcast media to support the enforcement of State distracted driving laws. 

‘‘(8) DISTRACTED DRIVING STUDY.— ‘‘(A) IN GENERAL.—The Secretary shall conduct a study 

of all forms of distracted driving. 

‘‘(B) COMPONENTS.—The study conducted under subparagraph (A) shall— 


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‘‘(i) examine the effect of distractions other than the 

use of personal wireless communications on motor vehicle safety; 

‘‘(ii) identify metrics to determine the nature and 

scope of the distracted driving problem; 

‘‘(iii) identify the most effective methods to enhance 

education and awareness; and 

‘‘(iv) identify the most effective method of reducing 

deaths and injuries caused by all forms of distracted 

driving. 

‘‘(C) REPORT.—Not later than 1 year after the date of 

enactment of the Motor Vehicle and Highway Safety Improvement Act of 2012, the Secretary shall submit a report 

containing the results of the study conducted under this 

paragraph to— 

‘‘(i) the Committee on Commerce, Science, and 

Transportation of the Senate; and 

‘‘(ii) the Committee on Transportation and Infrastructure of the House of Representatives. 

‘‘(9) DEFINITIONS.—In this subsection: 

‘‘(A) DRIVING.—The term ‘driving’— 

‘‘(i) means operating a motor vehicle on a public 

road, including operation while temporarily stationary 

because of traffic, a traffic light or stop sign, or otherwise; and 

‘‘(ii) does not include operating a motor vehicle 

when the vehicle has pulled over to the side of, or off, 

an active roadway and has stopped in a location where 

it can safely remain stationary. 

‘‘(B) PERSONAL WIRELESS COMMUNICATIONS DEVICE.— 

The term ‘personal wireless communications device’— 

‘‘(i) means a device through which personal wireless services (as defined in section 332(c)(7)(C)(i) of the 

Communications Act of 1934 (47 U.S.C. 

332(c)(7)(C)(i))) are transmitted; and 

‘‘(ii) does not include a global navigation satellite 

system receiver used for positioning, emergency notification, or navigation purposes. 

‘‘(C) PRIMARY OFFENSE.—The term ‘primary offense’ 

means an offense for which a law enforcement officer may 

stop a vehicle solely for the purpose of issuing a citation in 

the absence of evidence of another offense. 

‘‘(D) PUBLIC ROAD.—The term ‘public road’ has the 

meaning given such term in section 402(c). 

‘‘(E) TEXTING.—The term ‘texting’ means reading from 

or manually entering data into a personal wireless communications device, including doing so for the purpose of SMS 

texting, e-mailing, instant messaging, or engaging in any 

other form of electronic data retrieval or electronic data 

communication. 

‘‘(f) MOTORCYCLIST SAFETY.— 

‘‘(1) GRANTS AUTHORIZED.—Subject to the requirements 

under this subsection, the Secretary shall award grants to 

States that adopt and implement effective programs to reduce 


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the number of single- and multi-vehicle crashes involving motorcyclists. 

‘‘(2) ALLOCATION.—The amount of a grant awarded to a 

State for a fiscal year under this subsection may not exceed 25 

percent of the amount apportioned to the State for fiscal year 

2003 under section 402. 

‘‘(3) GRANT ELIGIBILITY.—A State becomes eligible for a 

grant under this subsection by adopting or demonstrating to the 

satisfaction of the Secretary, at least 2 of the following criteria: 

‘‘(A) MOTORCYCLE RIDER TRAINING COURSES.—An effective motorcycle rider training course that is offered 

throughout the State, which— 

‘‘(i) provides a formal program of instruction in accident avoidance and other safety-oriented operational 

skills to motorcyclists; and 

‘‘(ii) may include innovative training opportunities 

to meet unique regional needs. 

‘‘(B) MOTORCYCLISTS AWARENESS PROGRAM.—An effective statewide program to enhance motorist awareness of 

the presence of motorcyclists on or near roadways and safe 

driving practices that avoid injuries to motorcyclists. 

‘‘(C) REDUCTION OF FATALITIES AND CRASHES INVOLVING MOTORCYCLES.—A reduction for the preceding calendar 

year in the number of motorcycle fatalities and the rate of 

motor vehicle crashes involving motorcycles in the State (expressed as a function of 10,000 motorcycle registrations). 

‘‘(D) IMPAIRED DRIVING PROGRAM.—Implementation of 

a statewide program to reduce impaired driving, including 

specific measures to reduce impaired motorcycle operation. 

‘‘(E) REDUCTION OF FATALITIES AND ACCIDENTS INVOLVING IMPAIRED MOTORCYCLISTS.—A reduction for the preceding calendar year in the number of fatalities and the 

rate of reported crashes involving alcohol- or drug-impaired 

motorcycle operators (expressed as a function of 10,000 motorcycle registrations). 

‘‘(F) FEES COLLECTED FROM MOTORCYCLISTS.—All fees 

collected by the State from motorcyclists for the purposes of 

funding motorcycle training and safety programs will be 

used for motorcycle training and safety purposes. 

‘‘(4) ELIGIBLE USES.— 

‘‘(A) IN GENERAL.—A State may use funds from a grant 

under this subsection only for motorcyclist safety training 

and motorcyclist awareness programs, including— 

‘‘(i) improvements to motorcyclist safety training 

curricula; 

‘‘(ii) improvements in program delivery of motorcycle training to both urban and rural areas, including— 

‘‘(I) procurement or repair of practice motorcycles; 

‘‘(II) instructional materials; 

‘‘(III) mobile training units; and 

‘‘(IV) leasing or purchasing facilities for 

closed-course motorcycle skill training; 


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‘‘(iii) measures designed to increase the recruitment 

or retention of motorcyclist safety training instructors; 

and 

‘‘(iv) public awareness, public service announcements, and other outreach programs to enhance driver 

awareness of motorcyclists, such as the ‘share-the-road’ 

safety messages developed under subsection (g). 

‘‘(B) SUBALLOCATIONS OF FUNDS.—An agency of a State 

that receives a grant under this subsection may suballocate 

funds from the grant to a nonprofit organization incorporated in that State to carry out this subsection. 

‘‘(5) DEFINITIONS.—In this subsection: 

‘‘(A) MOTORCYCLIST AWARENESS.—The term ‘motorcyclist awareness’ means individual or collective awareness 

of— 

‘‘(i) the presence of motorcycles on or near roadways; and 

‘‘(ii) safe driving practices that avoid injury to motorcyclists. 

‘‘(B) MOTORCYCLIST AWARENESS PROGRAM.—The term 

‘motorcyclist awareness program’ means an informational 

or public awareness program designed to enhance motorcyclist awareness that is developed by or in coordination with 

the designated State authority having jurisdiction over motorcyclist safety issues, which may include the State motorcycle safety administrator or a motorcycle advisory council 

appointed by the governor of the State. 

‘‘(C) MOTORCYCLIST SAFETY TRAINING.—The term ‘motorcyclist safety training’ means a formal program of instruction that is approved for use in a State by the designated State authority having jurisdiction over motorcyclist safety issues, which may include the State motorcycle 

safety administrator or a motorcycle advisory council appointed by the governor of the State. 

‘‘(D) STATE.—The term ‘State’ has the meaning given 

such term in section 101(a) of title 23, United States Code. 

‘‘(g) STATE GRADUATED DRIVER LICENSING INCENTIVE GRANT.— 

‘‘(1) GRANTS AUTHORIZED.—Subject to the requirements 

under this subsection, the Secretary shall award grants to 

States that adopt and implement graduated driver licensing 

laws in accordance with the requirements set forth in paragraph (2). 

‘‘(2) MINIMUM REQUIREMENTS.— 

‘‘(A) IN GENERAL.—A State meets the requirements set 

forth in this paragraph if the State has a graduated driver 

licensing law that requires novice drivers younger than 21 

years of age to comply with the 2-stage licensing process described in subparagraph (B) before receiving an unrestricted driver’s license. 

‘‘(B) LICENSING PROCESS.—A State is in compliance 

with the 2-stage licensing process described in this subparagraph if the State’s driver’s license laws include— 

‘‘(i) a learner’s permit stage that— 

‘‘(I) is at least 6 months in duration; 


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‘‘(II) prohibits the driver from using a cellular 

telephone or any communications device in a nonemergency situation; and 

‘‘(III) remains in effect until the driver— 

‘‘(aa) reaches 16 years of age and enters 

the intermediate stage; or 

‘‘(bb) reaches 18 years of age; 

‘‘(ii) an intermediate stage that— 

‘‘(I) commences immediately after the expiration of the learner’s permit stage; 

‘‘(II) is at least 6 months in duration; 

‘‘(III) prohibits the driver from using a cellular 

telephone or any communications device in a nonemergency situation; 

‘‘(IV) restricts driving at night; 

‘‘(V) prohibits the driver from operating a 

motor vehicle with more than 1 nonfamilial passenger younger than 21 years of age unless a licensed driver who is at least 21 years of age is in 

the motor vehicle; and 

‘‘(VI) remains in effect until the driver reaches 

18 years of age; and 

‘‘(iii) any other requirement prescribed by the Secretary of Transportation, including— 

‘‘(I) in the learner’s permit stage— 

‘‘(aa) at least 40 hours of behind-the-wheel 

training with a licensed driver who is at least 

21 years of age; 

‘‘(bb) a driver training course; and 

‘‘(cc) a requirement that the driver be accompanied and supervised by a licensed driver, who is at least 21 years of age, at all times 

while such driver is operating a motor vehicle; 

and 

‘‘(II) in the learner’s permit or intermediate 

stage, a requirement, in addition to any other penalties imposed by State law, that the grant of an 

unrestricted driver’s license be automatically delayed for any individual who, during the learner’s 

permit or intermediate stage, is convicted of a driving-related offense, including— 

‘‘(aa) driving while intoxicated; 

‘‘(bb) misrepresentation of his or her true 

age; 

‘‘(cc) reckless driving; 

‘‘(dd) driving without wearing a seat belt; 

‘‘(ee) speeding; or 

‘‘(ff) any other driving-related offense, as 

determined by the Secretary. 

‘‘(3) RULEMAKING.— 

‘‘(A) IN GENERAL.—The Secretary shall promulgate regulations necessary to implement the requirements set forth 

in paragraph (2), in accordance with the notice and comment provisions under section 553 of title 5. 


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‘‘(B) EXCEPTION.—A State that otherwise meets the 

minimum requirements set forth in paragraph (2) shall be 

deemed by the Secretary to be in compliance with the requirement set forth in paragraph (2) if the State enacted a 

law before January 1, 2011, establishing a class of license 

that permits licensees or applicants younger than 18 years 

of age to drive a motor vehicle— 

‘‘(i) in connection with work performed on, or for 

the operation of, a farm owned by family members who 

are directly related to the applicant or licensee; or 

‘‘(ii) if demonstrable hardship would result from 

the denial of a license to the licensees or applicants. 

‘‘(4) ALLOCATION.—Grant funds allocated to a State under 

this subsection for a fiscal year shall be in proportion to a 

State’s apportionment under section 402 for such fiscal year. 

‘‘(5) USE OF FUNDS.—Of the grant funds received by a State 

under this subsection— 

‘‘(A) at least 25 percent shall be used for— 

‘‘(i) enforcing a 2-stage licensing process that complies with paragraph (2); 

‘‘(ii) training for law enforcement personnel and 

other relevant State agency personnel relating to the 

enforcement described in clause (i); 

‘‘(iii) publishing relevant educational materials 

that pertain directly or indirectly to the State graduated driver licensing law; 

‘‘(iv) carrying out other administrative activities 

that the Secretary considers relevant to the State’s 2- 

stage licensing process; and 

‘‘(v) carrying out a teen traffic safety program described in section 402(m); and 

‘‘(B) up to 75 percent may be used for any eligible 

project or activity under section 402.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 4 of 

title 23, United States Code, is amended by striking the item relating to section 405 and inserting the following: 

‘‘405. National priority safety programs.’’. 

SEC. 31106. HIGH VISIBILITY ENFORCEMENT PROGRAM. 

Section 2009 of SAFETEA–LU (23 U.S.C. 402 note) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘at least 2’’ and inserting ‘‘at least 3’’; 

and 

(B) by striking ‘‘years 2006 through 2012.’’ and inserting ‘‘fiscal years 2013 and 2014. The Administrator may 

also initiate and support additional campaigns in each of 

fiscal years 2013 and 2014 for the purposes specified in 

subsection (b).’’; 

(2) in subsection (b), by striking ‘‘either or both’’ and inserting ‘‘outcomes related to at least 1’’; 

(3) in subsection (c), by inserting ‘‘and Internet-based outreach’’ after ‘‘print media advertising’’; 

(4) in subsection (e), by striking ‘‘subsections (a), (c), and 

(f)’’ and inserting ‘‘subsection (c)’’; 

(5) by striking subsection (f); and 


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(6) by redesignating subsection (g) as subsection (f). 

SEC. 31107. AGENCY ACCOUNTABILITY. 

Section 412 of title 23, United States Code, is amended— 

(1) by amending subsection (a) to read as follows: 

‘‘(a) TRIENNIAL STATE MANAGEMENT REVIEWS.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph (2), 

the Secretary shall conduct a review of each State highway safety program at least once every 3 years. 

‘‘(2) EXCEPTIONS.—The Secretary may conduct reviews of 

the highway safety programs of the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the 

Northern Mariana Islands as often as the Secretary determines 

to be appropriate. 

‘‘(3) COMPONENTS.—Reviews under this subsection shall include— 

‘‘(A) a management evaluation of all grant programs 

funded under this chapter; 

‘‘(B) an assessment of State data collection and evaluation relating to performance measures established by the 

Secretary; 

‘‘(C) a comparison of State efforts under subparagraphs 

(A) and (B) to best practices and programs that have been 

evaluated for effectiveness; and 

‘‘(D) the development of recommendations on how each 

State could— 

‘‘(i) improve the management and oversight of its 

grant activities; and 

‘‘(ii) provide a management and oversight plan for 

such grant programs.’’; and 

(2) by striking subsection (f). 

SEC. 31108. EMERGENCY MEDICAL SERVICES. 

Section 10202 of Public Law 109–59 (42 U.S.C. 300d–4), is 

amended by adding at the end the following: 

‘‘(b) NATIONAL EMERGENCY MEDICAL SERVICES ADVISORY

COUNCIL.— 

‘‘(1) ESTABLISHMENT.—The Secretary of Transportation, in 

coordination with the Secretary of Health and Human Services 

and the Secretary of Homeland Security, shall establish a National Emergency Medical Services Advisory Council (referred 

to in this subsection as the ‘Advisory Council’). 

‘‘(2) MEMBERSHIP.—The Advisory Council shall be composed of 25 members, who— 

‘‘(A) shall be appointed by the Secretary of Transportation; and 

‘‘(B) shall collectively be representative of all sectors of 

the emergency medical services community. 

‘‘(3) PURPOSES.—The purposes of the Advisory Council are 

to advise and consult with— 

‘‘(A) the Federal Interagency Committee on Emergency 

Medical Services on matters relating to emergency medical 

services issues; and 

‘‘(B) the Secretary of Transportation on matters relating to emergency medical services issues affecting the Department of Transportation. 


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‘‘(4) ADMINISTRATION.—The Administrator of the National 

Highway Traffic Safety Administration shall provide administrative support to the Advisory Council, including scheduling 

meetings, setting agendas, keeping minutes and records, and 

producing reports. 

‘‘(5) LEADERSHIP.—The members of the Advisory Council 

shall annually select a chairperson of the Advisory Council. 

‘‘(6) MEETINGS.—The Advisory Council shall meet as frequently as is determined necessary by the chairperson of the Advisory Council. 

‘‘(7) ANNUAL REPORTS.—The Advisory Council shall prepare 

an annual report to the Secretary of Transportation regarding 

the Advisory Council’s actions and recommendations.’’. 

SEC. 31109. REPEAL OF PROGRAMS. 

(a) GENERAL PROVISION.—A repeal made by this section shall 

not affect amounts apportioned or allocated before the effective date 

of such repeal, provided that such apportioned or allocated funds 

continue to be subject to the requirements to which such funds were 

subject under the repealed section as in effect on the day before the 

date of the repeal. 

(b) SAFETY BELT PERFORMANCE GRANTS.—Section 406 of title 

23, United States Code, and the item relating to section 406 in the 

analysis for chapter 4 of title 23, United States Code, are repealed. 

(c) INNOVATIVE PROJECT GRANTS.—Section 407 of title 23, 

United States Code, and the item relating to section 407 in the analysis for chapter 4, are repealed. 

(d) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.—Section 408 of title 23, United States Code, and the item 

relating to section 408 in the analysis for chapter 4, are repealed. 

(e) ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES.—Section 

410 of title 23, United States Code, and the item relating to section 

410 in the analysis for chapter 4, are repealed. 

(f) STATE HIGHWAY SAFETY DATA IMPROVEMENTS.—Section 411 

of title 23, United States Code, and the item relating to section 411 

in the analysis for chapter 4, are repealed. 

(g) MOTORCYCLIST SAFETY.—Section 2010 of SAFETEA–LU (23 

U.S.C. 402 note), and the item relating to section 2010 in the table 

of contents under section 1(b) of such Act, are repealed. 

(h) CHILD SAFETY AND CHILD BOOSTER SEAT INCENTIVE

GRANTS.—Section 2011 of SAFETEA–LU (23 U.S.C. 405 note), and 

the item relating to section 2011 in the table of contents under section 1(b) of that Act, are repealed. 

(i) DRUG-IMPAIRED DRIVING ENFORCEMENT.—Section 2013 of 

SAFETEA-LU (23 U.S.C. 403 note), and the item relating to section 

2013 in the table of contents under section 1(b) of that Act, are repealed. 

(j) FIRST RESPONDER VEHICLE SAFETY PROGRAM.—Section 2014 

of SAFETEA-LU (23 U.S.C. 402 note), and the item relating to section 2014 in the table of contents under section 1(b) of that Act, are 

repealed. 

(k) RURAL STATE EMERGENCY MEDICAL SERVICES OPTIMIZATION PILOT PROGRAM.—Section 2016 of SAFETEA-LU (119 Stat. 

1541), and the item relating to section 2016 in the table of contents 

under section 1(b) of that Act, are repealed. 


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(l) OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.—Section 2017 of SAFETEA-LU (119 Stat. 1541), and the item relating 

to section 2017 in the table of contents under section 1(b) of that 

Act, are repealed. 

Subtitle B—Enhanced Safety Authorities 

SEC. 31201. DEFINITION OF MOTOR VEHICLE EQUIPMENT. 

Section 30102(a)(7)(C) of title 49, United States Code, is amended to read as follows: 

‘‘(C) any device or an article or apparel, including a 

motorcycle helmet and excluding medicine or eyeglasses 

prescribed by a licensed practitioner, that— 

‘‘(i) is not a system, part, or component of a motor 

vehicle; and 

‘‘(ii) is manufactured, sold, delivered, or offered to 

be sold for use on public streets, roads, and highways 

with the apparent purpose of safeguarding users of 

motor vehicles against risk of accident, injury, or 

death.’’. 

SEC. 31202. PERMIT REMINDER SYSTEM FOR NON-USE OF SAFETY 

BELTS. 

(a) IN GENERAL.—Chapter 301 of title 49, United States Code, 

is amended— 

(1) in section 30122, by striking subsection (d); and 

(2) by amending section 30124 to read as follows: 

‘‘§ 30124. Nonuse of safety belts 

‘‘A motor vehicle safety standard prescribed under this chapter 

may not require a manufacturer to comply with the standard by 

using a safety belt interlock designed to prevent starting or operating a motor vehicle if an occupant is not using a safety belt.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 301 of 

title 49, United States Code, is amended by striking the item relating to section 30124 and inserting the following: 

‘‘Sec. 30124. Nonuse of safety belts.’’. 

SEC. 31203. CIVIL PENALTIES. 

(a) IN GENERAL.—Section 30165 of title 49, United States Code, 

is amended— 

(1) in subsection (a)— 

(A) in paragraph (1)— 

(i) by striking ‘‘30123(d)’’ and inserting ‘‘30123(a)’’; 

and 

(ii) by striking ‘‘$15,000,000’’ and inserting ‘‘$35,000,000’’; and 

(B) in paragraph (3), by striking ‘‘$15,000,000’’ and in- serting ‘‘$35,000,000’’; and 

(2) by amending subsection (c) to read as follows: 

‘‘(c) RELEVANT FACTORS IN DETERMINING AMOUNT OF PENALTY

OR COMPROMISE.—In determining the amount of a civil penalty or 

compromise under this section, the Secretary of Transportation 

shall consider the nature, circumstances, extent, and gravity of the 

violation. Such determination shall include, as appropriate— 

‘‘(1) the nature of the defect or noncompliance; 


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‘‘(2) knowledge by the person charged of its obligations 

under this chapter; 

‘‘(3) the severity of the risk of injury; 

‘‘(4) the occurrence or absence of injury; 

‘‘(5) the number of motor vehicles or items of motor vehicle 

equipment distributed with the defect or noncompliance; 

‘‘(6) actions taken by the person charged to identify, investigate, or mitigate the condition; 

‘‘(7) the appropriateness of such penalty in relation to the 

size of the business of the person charged, including the potential for undue adverse economic impacts; 

‘‘(8) whether the person has been assessed civil penalties 

under this section during the most recent 5 years; and 

‘‘(9) other appropriate factors.’’. 

(b) CIVIL PENALTY CRITERIA.—Not later than 1 year after the 

date of enactment of this Act, the Secretary shall issue a final rule, 

in accordance with the procedures of section 553 of title 5, United 

States Code, which provides an interpretation of the penalty factors 

described in section 30165(c) of title 49, United States Code. 

(c) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect on the date that is the earlier of the date on which 

final regulations are issued under subsection (b) or 1 year after the 

date of enactment of this Act. 

SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—Chapter 301 of title 49, United States Code, 

is amended by adding at the end the following: 

‘‘SUBCHAPTER V—MOTOR VEHICLE SAFETY RESEARCH 

AND DEVELOPMENT 

‘‘§ 30181. Policy 

‘‘The Secretary of Transportation shall conduct research, development, and testing on any area or aspect of motor vehicle safety 

necessary to carry out this chapter. 

‘‘§ 30182. Powers and duties 

‘‘(a) IN GENERAL.—The Secretary of Transportation shall— 

‘‘(1) conduct motor vehicle safety research, development, 

and testing programs and activities, including activities related 

to new and emerging technologies that impact or may impact 

motor vehicle safety; 

‘‘(2) collect and analyze all types of motor vehicle and highway safety data and related information to determine the relationship between motor vehicle or motor vehicle equipment performance characteristics and— 

‘‘(A) accidents involving motor vehicles; and 

‘‘(B) deaths or personal injuries resulting from those 

accidents. 

‘‘(b) ACTIVITIES.—In carrying out a program under this section, 

the Secretary of Transportation may— 

‘‘(1) promote, support, and advance the education and 

training of motor vehicle safety staff of the National Highway 

Traffic Safety Administration in motor vehicle safety research 

programs and activities, including using program funds for 


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planning, implementing, conducting, and presenting results of 

program activities, and for related expenses; 

‘‘(2) obtain experimental and other motor vehicles and 

motor vehicle equipment for research or testing; 

‘‘(3)(A) use any test motor vehicles and motor vehicle equipment suitable for continued use, as determined by the Secretary 

to assist in carrying out this chapter or any other chapter of 

this title; or 

‘‘(B) sell or otherwise dispose of test motor vehicles and 

motor vehicle equipment and use the resulting proceeds to carry 

out this chapter; 

‘‘(4) award grants to States and local governments, interstate authorities, and nonprofit institutions; and 

‘‘(5) enter into cooperative agreements, collaborative research, or contracts with Federal agencies, interstate authorities, State and local governments, other public entities, private 

organizations and persons, nonprofit institutions, colleges and 

universities, consumer advocacy groups, corporations, partnerships, sole proprietorships, trade associations, Federal laboratories (including government-owned, government-operated laboratories and government-owned, contractor-operated laboratories), and research organizations. 

‘‘(c) USE OF PUBLIC AGENCIES.—In carrying out this subchapter, the Secretary shall avoid duplication by using the services, 

research, and testing facilities of public agencies, as appropriate. 

‘‘(d) FACILITIES.—The Secretary may plan, design, and construct a new facility or modify an existing facility to conduct research, development, and testing in traffic safety, highway safety, 

and motor vehicle safety. An expenditure of more than $1,500,000 

for planning, design, or construction may be made only if 60 days 

prior notice of the planning, design, or construction is provided to 

the Committees on Science, Space, and Technology and Transportation and Infrastructure of the House of Representatives and the 

Committees on Commerce, Science, and Transportation and Environment and Public Works of the Senate. The notice shall include— 

‘‘(1) a brief description of the facility being planned, designed, or constructed; 

‘‘(2) the location of the facility; 

‘‘(3) an estimate of the maximum cost of the facility; 

‘‘(4) a statement identifying private and public agencies 

that will use the facility and the contribution each agency will 

make to the cost of the facility; and 

‘‘(5) a justification of the need for the facility. 

‘‘(e) INCREASING COSTS OF APPROVED FACILITIES.—The estimated maximum cost of a facility noticed under subsection (d) may 

be increased by an amount equal to the percentage increase in construction costs from the date the notice is submitted to Congress. 

However, the increase in the cost of the facility may not be more 

than 10 percent of the estimated maximum cost included in the notice. The Secretary shall decide what increase in construction costs 

has occurred. 

‘‘(f) AVAILABILITY OF INFORMATION, PATENTS, AND DEVELOP- MENTS.—When the United States Government makes more than a 

minimal contribution to a research or development activity under 

this chapter, the Secretary shall include in the arrangement for the 


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activity a provision to ensure that all information, patents, and developments related to the activity are available to the public. The 

owner of a background patent may not be deprived of a right under 

the patent. 

‘‘§ 30183. Prohibition on certain disclosures. 

‘‘Any report of the National Highway Traffic Safety Administration, or of any officer, employee, or contractor of the National Highway Traffic Safety Administration, relating to any highway traffic 

accident or the investigation of such accident conducted pursuant to 

this chapter or section 403 of title 23, may be made available to the 

public only in a manner that does not identify individuals.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) AMENDMENT OF CHAPTER ANALYSIS.—The chapter analysis for chapter 301 of title 49, United States Code, is amended 

by adding at the end the following: 

‘‘SUBCHAPTER V—MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT

‘‘30181. Policy. 

‘‘30182. Powers and duties. 

‘‘30183. Prohibition on certain disclosures.’’. 

(2) DELETION OF REDUNDANT MATERIAL.—Chapter 301 of 

title 49, United States Code, is amended— 

(A) in the chapter analysis, by striking the item relating to section 30168; and 

(B) by striking section 30168. 

SEC. 31205. ODOMETER REQUIREMENTS. 

(a) DEFINITION.—Section 32702(5) of title 49, United States 

Code, is amended by inserting ‘‘or system of components’’ after ‘‘instrument’’. 

(b) ELECTRONIC DISCLOSURES OF ODOMETER INFORMATION.— 

Section 32705 of title 49, United States Code, is amended by adding 

at the end the following: 

‘‘(g) ELECTRONIC DISCLOSURES.—Not later than 18 months 

after the date of enactment of the Motor Vehicle and Highway Safety Improvement Act of 2012, in carrying out this section, the Secretary shall prescribe regulations permitting any written disclosures 

or notices and related matters to be provided electronically.’’. 

SEC. 31206. INCREASED PENALTIES AND DAMAGES FOR ODOMETER 

FRAUD. 

Chapter 327 of title 49, United States Code, is amended— 

(1) in section 32709(a)(1)— 

(A) by striking ‘‘$2,000’’ and inserting ‘‘$10,000’’; and 

(B) by striking ‘‘$100,000’’ and inserting ‘‘$1,000,000’’; 

and 

(2) in section 32710(a), by striking ‘‘$1,500’’ and inserting 

‘‘$10,000’’. 

SEC. 31207. EXTEND PROHIBITIONS ON IMPORTING NONCOMPLIANT 

VEHICLES AND EQUIPMENT TO DEFECTIVE VEHICLES 

AND EQUIPMENT. 

Section 30112 of title 49, United States Code, is amended— 

(1) in subsection (a), by adding at the end the following: 

‘‘(3) Except as provided in this section, section 30114, subsections (i) and (j) of section 30120, and subchapter III, a person 

may not sell, offer for sale, introduce or deliver for introduction in 


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interstate commerce, or import into the United States any motor vehicle or motor vehicle equipment if the vehicle or equipment contains a defect related to motor vehicle safety about which notice was 

given under section 30118(c) or an order was issued under section 

30118(b). Nothing in this paragraph may be construed to prohibit 

the importation of a new motor vehicle that receives a required recall remedy before being sold to a consumer in the United States.’’; 

and 

(2) in subsection (b)(2)— 

(A) in subparagraph (A), by striking ‘‘or’’ at the end; 

(B) in subparagraph (B), by adding ‘‘or’’ at the end; 

and 

(C) by adding at the end the following: 

‘‘(C) having no reason to know, despite exercising reasonable care, that a motor vehicle or motor vehicle equipment contains a defect related to motor vehicle safety about 

which notice was given under section 30118(c) or an order 

was issued under section 30118(b);’’. 

SEC. 31208. CONDITIONS ON IMPORTATION OF VEHICLES AND EQUIPMENT. 

Chapter 301 of title 49, United States Code, is amended— 

(1) in the chapter analysis, by striking the item relating to 

section 30164 and inserting the following: 

‘‘30164. Service of process; conditions on importation of vehicles and equipment.’’; 

and 

(2) in section 30164— 

(A) in the section heading, by adding ‘‘; CONDITIONS 

ON IMPORTATION OF VEHICLES AND EQUIPMENT’’ at the end; and 

(B) by adding at the end the following: 

‘‘(c) IDENTIFYING INFORMATION.—A manufacturer (including an 

importer) offering a motor vehicle or motor vehicle equipment for 

import shall provide, upon request, such information that is necessary to identify and track the products as the Secretary, by rule, 

may specify, including— 

‘‘(1) the product by name and the manufacturer’s address; 

and 

‘‘(2) each retailer or distributor to which the manufacturer 

directly supplied motor vehicles or motor vehicle equipment over 

which the Secretary has jurisdiction under this chapter. 

‘‘(d) REGULATIONS ON THE IMPORT OF A MOTOR VEHICLE.—The 

Secretary may issue regulations that— 

‘‘(1) condition the import of a motor vehicle or motor vehicle 

equipment on the manufacturer’s compliance with— 

‘‘(A) the requirements under this section; 

‘‘(B) paragraph (1) or (3) of section 30112(a) with respect to such motor vehicle or motor vehicle equipment; 

‘‘(C) the provision of reports and records required to be 

maintained with respect to such motor vehicle or motor vehicle equipment under this chapter; 

‘‘(D) a request for inspection of premises, vehicle, or 

equipment under section 30166; 

‘‘(E) an order or voluntary agreement to remedy such 

vehicle or equipment; or 


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‘‘(F) any rules implementing the requirements described 

in this subsection; 

‘‘(2) provide an opportunity for the manufacturer to present 

information before the Secretary’s determination as to whether 

the manufacturer’s imports should be restricted; and 

‘‘(3) establish a process by which a manufacturer may petition for reinstatement of its ability to import motor vehicles or 

motor vehicle equipment. 

‘‘(e) EXCEPTION.—The requirements of subsections (c) and (d) 

shall not apply to original manufacturers (or wholly owned subsidiaries) of motor vehicles that, prior to the date of enactment of the 

Motor Vehicle and Highway Safety Improvement Act of 2012— 

‘‘(1) have imported motor vehicles into the United States 

that are certified to comply with all applicable Federal motor 

vehicle safety standards; 

‘‘(2) have submitted to the Secretary appropriate manufacturer identification information under part 566 of title 49, Code 

of Federal Regulations; and 

‘‘(3) if applicable, have identified a current agent for service 

of process in accordance with part 551 of title 49, Code of Federal Regulations. 

‘‘(f) RULEMAKING.—In issuing regulations under this section, the 

Secretary shall seek to reduce duplicative requirements by coordinating with the Department of Homeland Security.’’. 

SEC. 31209. PORT INSPECTIONS; SAMPLES FOR EXAMINATION OR 

TESTING. 

Section 30166(c) of title 49, United States Code, is amended— 

(1) in paragraph (2), by striking ‘‘and’’ at the end; 

(2) in paragraph (3)— 

(A) in subparagraph (A), by inserting ‘‘(including at 

United States ports of entry)’’ after ‘‘held for introduction in 

interstate commerce’’; and 

(B) in subparagraph (D), by striking the period at the 

end and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(4) shall enter into a memorandum of understanding with 

the Secretary of Homeland Security for inspections and sampling of motor vehicle equipment being offered for import to determine compliance with this chapter or a regulation or order 

issued under this chapter.’’. 

Subtitle C—Transparency and 

Accountability 

SEC. 31301. PUBLIC AVAILABILITY OF RECALL INFORMATION. 

(a) VEHICLE RECALL INFORMATION.—Not later than 1 year after 

the date of enactment of this Act, the Secretary shall require that 

motor vehicle safety recall information— 

(1) be available to the public on the Internet; 

(2) be searchable by vehicle make and model and vehicle 

identification number; 

(3) be in a format that preserves consumer privacy; and 

(4) includes information about each recall that has not been 

completed for each vehicle. 


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(b) RULEMAKING.—The Secretary may initiate a rulemaking 

proceeding to require each manufacturer to provide the information 

described in subsection (a), with respect to that manufacturer’s 

motor vehicles, on a publicly accessible Internet website. Any rules 

promulgated under this subsection— 

(1) shall limit the information that must be made available 

under this section to include only those recalls issued not more 

than 15 years prior to the date of enactment of this Act; 

(2) may require information under paragraph (1) to be provided to a dealer or an owner of a vehicle at no charge; and 

(3) shall permit a manufacturer a reasonable period of time 

after receiving information from a dealer with respect to a vehicle to update the information about the vehicle on the publicly 

accessible Internet website. 

(c) PROMOTION OF PUBLIC AWARENESS.—The Secretary, in consultation with the heads of other relevant agencies, shall promote 

consumer awareness of the information made available to the public 

pursuant to this section. 

SEC. 31302. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 

OUTREACH TO MANUFACTURER, DEALER, AND MECHANIC 

PERSONNEL. 

The Secretary shall publicize the means for contacting the National Highway Traffic Safety Administration in a manner that targets mechanics, passenger motor vehicle dealership personnel, and 

manufacturer personnel. 

SEC. 31303. PUBLIC AVAILABILITY OF COMMUNICATIONS TO DEALERS. 

(a) INTERNET ACCESSIBILITY.—Section 30166(f) of title 49, 

United States Code, is amended— 

(1) by striking ‘‘A manufacturer shall give the Secretary of 

Transportation’’ and inserting the following: 

‘‘(1) IN GENERAL.—A manufacturer shall give the Secretary 

of Transportation, and the Secretary shall make available on a 

publicly accessible Internet website,’’; and 

(2) by adding at the end the following: 

‘‘(2) INDEX.—Communications required to be submitted to 

the Secretary under this subsection shall be accompanied by an 

index to each communication, that— 

‘‘(A) identifies the make, model, and model year of the 

affected vehicles; 

‘‘(B) includes a concise summary of the subject matter 

of the communication; and 

‘‘(C) shall be made available by the Secretary to the 

public on the Internet in a searchable format.’’. 

SEC. 31304. CORPORATE RESPONSIBILITY FOR NATIONAL HIGHWAY 

TRAFFIC SAFETY ADMINISTRATION REPORTS. 

(a) IN GENERAL.—Section 30166 of title 49, United States Code, 

is amended by adding at the end the following: 

‘‘(o) CORPORATE RESPONSIBILITY FOR REPORTS.— 

‘‘(1) IN GENERAL.—The Secretary may promulgate rules requiring a senior official responsible for safety in any company 

submitting information to the Secretary in response to a request 

for information in a safety defect or compliance investigation 

under this chapter to certify that— 


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‘‘(A) the signing official has reviewed the submission; 

and 

‘‘(B) based on the official’s knowledge, the submission 

does not— 

‘‘(i) contain any untrue statement of a material 

fact; or 

‘‘(ii) omit to state a material fact necessary in order 

to make the statements made not misleading, in light 

of the circumstances under which such statements were 

made. 

‘‘(2) NOTICE.—The certification requirements of this section 

shall be clearly stated on any request for information under 

paragraph (1).’’. 

(b) CIVIL PENALTY.—Section 30165(a) of title 49, United States 

Code, is amended— 

(1) in paragraph (3), by striking ‘‘A person’’ and inserting 

‘‘Except as provided in paragraph (4), a person’’; and 

(2) by adding at the end the following: 

‘‘(4) FALSE OR MISLEADING REPORTS.—A person who knowingly and willfully submits materially false or misleading information to the Secretary, after certifying the same information 

as accurate under the certification process established pursuant 

to section 30166(o), shall be subject to a civil penalty of not 

more than $5,000 per day. The maximum penalty under this 

paragraph for a related series of daily violations is 

$1,000,000.’’. 

SEC. 31305. PASSENGER MOTOR VEHICLE INFORMATION PROGRAM. 

(a) DEFINITION.—Section 32301 of title 49, United States Code, 

is amended— 

(1) by redesignating paragraphs (1) and (2) as paragraphs 

(2) and (3), respectively; 

(2) by inserting before paragraph (2), as redesignated, the 

following: 

‘‘(1) ‘crash avoidance’ means preventing or mitigating a 

crash;’’; and 

(3) in paragraph (2), as redesignated, by striking the period 

at the end and inserting ‘‘; and’’. 

(b) INFORMATION INCLUDED.—Section 32302(a) of title 49, 

United States Code, is amended— 

(1) in paragraph (2), by inserting ‘‘, crash avoidance, and 

any other areas the Secretary determines will improve the safety 

of passenger motor vehicles’’ after ‘‘crashworthiness’’; and 

(2) by striking paragraph (4). 

SEC. 31306. PROMOTION OF VEHICLE DEFECT REPORTING. 

Section 32302 of title 49, United States Code, is amended by 

adding at the end the following: 

‘‘(d) MOTOR VEHICLE DEFECT REPORTING INFORMATION.— 

‘‘(1) RULEMAKING REQUIRED.—Not later than 1 year after 

the date of enactment of the Motor Vehicle and Highway Safety 

Improvement Act of 2012, the Secretary shall prescribe regulations that require passenger motor vehicle manufacturers— 

‘‘(A) to affix, in the glove compartment or in another 

readily accessible location on the vehicle, a sticker, decal, or 

other device that provides, in simple and understandable 


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language, information about how to submit a safety-related 

motor vehicle defect complaint to the National Highway 

Traffic Safety Administration; 

‘‘(B) to prominently print the information described in 

subparagraph (A) within the owner’s manual; and 

‘‘(C) to not place such information on the label required 

under section 3 of the Automobile Information Disclosure 

Act (15 U.S.C. 1232). 

‘‘(2) APPLICATION.—The requirements under paragraph (1) 

shall apply to passenger motor vehicles manufactured in any 

model year beginning more than 1 year after the date on which 

a final rule is published under paragraph (1).’’. 

SEC. 31307. WHISTLEBLOWER PROTECTIONS FOR MOTOR VEHICLE 

MANUFACTURERS, PART SUPPLIERS, AND DEALERSHIP 

EMPLOYEES. 

(a) IN GENERAL.—Subchapter IV of chapter 301 of title 49, 

United States Code, is amended by adding at the end the following: 

‘‘§ 30171. Protection of employees providing motor vehicle 

safety information 

‘‘(a) DISCRIMINATION AGAINST EMPLOYEES OF MANUFACTURERS, PART SUPPLIERS, AND DEALERSHIPS.—No motor vehicle manufacturer, part supplier, or dealership may discharge an employee or 

otherwise discriminate against an employee with respect to compensation, terms, conditions, or privileges of employment because 

the employee (or any person acting pursuant to a request of the employee)— 

‘‘(1) provided, caused to be provided, or is about to provide 

(with any knowledge of the employer) or cause to be provided 

to the employer or the Secretary of Transportation information 

relating to any motor vehicle defect, noncompliance, or any violation or alleged violation of any notification or reporting requirement of this chapter; 

‘‘(2) has filed, caused to be filed, or is about to file (with 

any knowledge of the employer) or cause to be filed a proceeding 

relating to any violation or alleged violation of any motor vehicle defect, noncompliance, or any violation or alleged violation 

of any notification or reporting requirement of this chapter; 

‘‘(3) testified or is about to testify in such a proceeding; 

‘‘(4) assisted or participated or is about to assist or participate in such a proceeding; or 

‘‘(5) objected to, or refused to participate in, any activity 

that the employee reasonably believed to be in violation of any 

provision of chapter 301 of this title, or any order, rule, regulation, standard, or ban under such provision. 

‘‘(b) COMPLAINT PROCEDURE.— 

‘‘(1) FILING AND NOTIFICATION.—A person who believes that 

he or she has been discharged or otherwise discriminated 

against by any person in violation of subsection (a) may file (or 

have any person file on his or her behalf), not later than 180 

days after the date on which such violation occurs, a complaint 

with the Secretary of Labor (hereinafter in this section referred 

to as the ‘Secretary’) alleging such discharge or discrimination. 

Upon receipt of such a complaint, the Secretary shall notify, in 

writing, the person named in the complaint of the filing of the 


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complaint, of the allegations contained in the complaint, of the 

substance of evidence supporting the complaint, and of the opportunities that will be afforded to such person under paragraph (2). 

‘‘(2) INVESTIGATION; PRELIMINARY ORDER.— 

‘‘(A) IN GENERAL.—Not later than 60 days after the 

date of receipt of a complaint filed under paragraph (1) 

and after affording the person named in the complaint an 

opportunity to submit to the Secretary a written response to 

the complaint and an opportunity to meet with a representative of the Secretary to present statements from witnesses, 

the Secretary shall conduct an investigation and determine 

whether there is reasonable cause to believe that the complaint has merit and notify, in writing, the complainant 

and the person alleged to have committed a violation of 

subsection (a) of the Secretary’s findings. If the Secretary 

concludes that there is a reasonable cause to believe that a 

violation of subsection (a) has occurred, the Secretary shall 

accompany the Secretary’s findings with a preliminary 

order providing the relief prescribed by paragraph (3)(B). 

Not later than 30 days after the date of notification of findings under this paragraph, either the person alleged to 

have committed the violation or the complainant may file 

objections to the findings or preliminary order, or both, and 

request a hearing on the record. The filing of such objections shall not operate to stay any reinstatement remedy 

contained in the preliminary order. Such hearings shall be 

conducted expeditiously. If a hearing is not requested in 

such 30-day period, the preliminary order shall be deemed 

a final order that is not subject to judicial review. 

‘‘(B) REQUIREMENTS.— 

‘‘(i) REQUIRED SHOWING BY COMPLAINANT.—The 

Secretary shall dismiss a complaint filed under this 

subsection and shall not conduct an investigation otherwise required under subparagraph (A) unless the 

complainant makes a prima facie showing that any behavior described in paragraphs (1) through (5) of subsection (a) was a contributing factor in the unfavorable 

personnel action alleged in the complaint. 

‘‘(ii) SHOWING BY EMPLOYER.—Notwithstanding a 

finding by the Secretary that the complainant has 

made the showing required under clause (i), no investigation otherwise required under subparagraph (A) 

shall be conducted if the employer demonstrates, by 

clear and convincing evidence, that the employer would 

have taken the same unfavorable personnel action in 

the absence of that behavior. 

‘‘(iii) CRITERIA FOR DETERMINATION BY SECRETARY.—The Secretary may determine that a violation 

of subsection (a) has occurred only if the complainant 

demonstrates that any behavior described in paragraphs (1) through (5) of subsection (a) was a contributing factor in the unfavorable personnel action alleged 

in the complaint. 


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‘‘(iv) PROHIBITION.—Relief may not be ordered 

under subparagraph (A) if the employer demonstrates, 

by clear and convincing evidence, that the employer 

would have taken the same unfavorable personnel action in the absence of that behavior. 

‘‘(3) FINAL ORDER.— ‘‘(A) DEADLINE FOR ISSUANCE; SETTLEMENT AGREE- MENTS.—Not later than 120 days after the date of conclusion of a hearing under paragraph (2), the Secretary shall 

issue a final order providing the relief prescribed by this 

paragraph or denying the complaint. At any time before 

issuance of a final order, a proceeding under this subsection may be terminated on the basis of a settlement 

agreement entered into by the Secretary, the complainant, 

and the person alleged to have committed the violation. 

‘‘(B) REMEDY.—If, in response to a complaint filed 

under paragraph (1), the Secretary determines that a violation of subsection (a) has occurred, the Secretary shall 

order the person who committed such violation— 

‘‘(i) to take affirmative action to abate the violation; 

‘‘(ii) to reinstate the complainant to his or her 

former position together with the compensation (including back pay) and restore the terms, conditions, and 

privileges associated with his or her employment; and 

‘‘(iii) to provide compensatory damages to the complainant. 

‘‘(C) ATTORNEYS’ FEES.—If such an order is issued 

under this paragraph, the Secretary, at the request of the 

complainant, shall assess against the person against whom 

the order is issued a sum equal to the aggregate amount of 

all costs and expenses (including attorneys’ and expert witness fees) reasonably incurred, as determined by the Secretary, by the complainant for, or in connection with, bringing the complaint upon which the order was issued. 

‘‘(D) FRIVOLOUS COMPLAINTS.—If the Secretary determines that a complaint under paragraph (1) is frivolous or 

has been brought in bad faith, the Secretary may award to 

the prevailing employer a reasonable attorney’s fee not exceeding $1,000. 

‘‘(E) DE NOVO REVIEW.—With respect to a complaint 

under paragraph (1), if the Secretary has not issued a final 

decision within 210 days after the filing of the complaint 

and if the delay is not due to the bad faith of the employee, 

the employee may bring an original action at law or equity 

for de novo review in the appropriate district court of the 

United States, which shall have jurisdiction over such an 

action without regard to the amount in controversy, and 

which action shall, at the request of either party to the action, be tried by the court with a jury. The action shall be 

governed by the same legal burdens of proof specified in 

paragraph (2)(B) for review by the Secretary. 

‘‘(4) REVIEW.— 

‘‘(A) APPEAL TO COURT OF APPEALS.—Any person adversely affected or aggrieved by an order issued under 


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paragraph (3) may obtain review of the order in the United 

States Court of Appeals for the circuit in which the violation, with respect to which the order was issued, allegedly 

occurred or the circuit in which the complainant resided on 

the date of such violation. The petition for review shall be 

filed not later than 60 days after the date of the issuance 

of the final order of the Secretary. Review shall conform to 

chapter 7 of title 5. The commencement of proceedings 

under this subparagraph shall not, unless ordered by the 

court, operate as a stay of the order. 

‘‘(B) LIMITATION ON COLLATERAL ATTACK.—An order of 

the Secretary with respect to which review could have been 

obtained under subparagraph (A) shall not be subject to judicial review in any criminal or other civil proceeding. 

‘‘(5) ENFORCEMENT OF ORDER BY SECRETARY.—Whenever 

any person fails to comply with an order issued under paragraph (3), the Secretary may file a civil action in the United 

States district court for the district in which the violation was 

found to occur to enforce such order. In actions brought under 

this paragraph, the district courts shall have jurisdiction to 

grant all appropriate relief, including injunctive relief and compensatory damages. 

‘‘(6) ENFORCEMENT OF ORDER BY PARTIES.— 

‘‘(A) COMMENCEMENT OF ACTION.—A person on whose 

behalf an order was issued under paragraph (3) may commence a civil action against the person to whom such order 

was issued to require compliance with such order. The appropriate United States district court shall have jurisdiction, without regard to the amount in controversy or the 

citizenship of the parties, to enforce such order. 

‘‘(B) ATTORNEY FEES.—The court, in issuing any final 

order under this paragraph, may award costs of litigation 

(including reasonable attorney and expert witness fees) to 

any party whenever the court determines such award is appropriate. 

‘‘(c) MANDAMUS.—Any nondiscretionary duty imposed under 

this section shall be enforceable in a mandamus proceeding brought 

under section 1361 of title 28. 

‘‘(d) NONAPPLICABILITY TO DELIBERATE VIOLATIONS.—Subsection (a) shall not apply with respect to an employee of a motor 

vehicle manufacturer, part supplier, or dealership who, acting without direction from such motor vehicle manufacturer, part supplier, 

or dealership (or such person’s agent), deliberately causes a violation of any requirement relating to motor vehicle safety under this 

chapter.’’. 

(b) GOVERNMENT ACCOUNTABILITY OFFICE REPORT.—Not later 

than 2 years after the date of enactment of this Act, the Comptroller 

General of the United States shall— 

(1) conduct a study of the whistleblower protections established by law with respect to this program, and update its 

study of other such programs administered by the Secretary of 

Transportation; and 

(2) submit to Congress a report of the results of the study 

under paragraph (1), including— 


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(A) an identification of the differences between the provisions applicable to different programs, the number of 

claims brought pursuant to each provision, and the outcome of each claim; and 

(B) any recommendations for program changes that the 

Comptroller General considers appropriate based on the 

study under paragraph (1). 

(c) CONFORMING AMENDMENT.—The table of sections for chapter 

301 of title 49, United States Code, is amended by inserting after 

the item relating to section 30170 the following: 

‘‘30171. Protection of employees providing motor vehicle safety information.’’. 

SEC. 31308. ANTI-REVOLVING DOOR. 

(a) STUDY OF DEPARTMENT OF TRANSPORTATION POLICIES ON

OFFICIAL COMMUNICATION WITH FORMER MOTOR VEHICLE SAFETY

ISSUE EMPLOYEES.—Not later than 1 year after the date of enactment of this Act, the Inspector General of the Department of Transportation shall— 

(1) review the Department of Transportation’s policies and 

procedures applicable to official communication with former 

employees concerning motor vehicle safety compliance matters 

for which they had responsibility during the last 12 months of 

their tenure at the Department, including any limitations on 

the ability of such employees to submit comments, or otherwise 

communicate directly with the Department, on motor vehicle 

safety issues; and 

(2) submit a report to the Committee on Commerce, Science, 

and Transportation of the Senate and the Committee on Energy 

and Commerce of the House of Representatives that contains the 

Inspector General’s findings, conclusions, and recommendations 

for strengthening those policies and procedures to minimize the 

risk of undue influence without compromising the ability of the 

Department to employ and retain highly qualified individuals 

for such responsibilities. 

(b) POST-EMPLOYMENT POLICY STUDY.— 

(1) IN GENERAL.—The Inspector General of the Department 

of Transportation shall conduct a study of the Department’s 

policies relating to post-employment restrictions on employees 

who perform functions related to transportation safety. 

(2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Inspector General shall submit a report 

containing the results of the study conducted under paragraph 

(1) to— 

(A) the Committee on Commerce, Science, and Transportation of the Senate; 

(B) the Committee on Energy and Commerce of the 

House of Representatives; and 

(C) the Secretary of Transportation. 

(3) USE OF RESULTS.—The Secretary of Transportation 

shall review the results of the study conducted under paragraph 

(1) and take whatever action the Secretary determines to be appropriate. 

SEC. 31309. STUDY OF CRASH DATA COLLECTION. 

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Secretary shall submit a report to the ComVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00379 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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mittee on Commerce, Science, and Transportation of the Senate and 

the Committee on Energy and Commerce of the House of Representatives regarding the quality of data collected through the National 

Automotive Sampling System, including the Special Crash Investigations Program. 

(b) REVIEW.—The Administrator of the National Highway Traffic Safety Administration (referred to in this section as the ‘‘Administration’’) shall conduct a comprehensive review of the data elements collected from each crash to determine if additional data 

should be collected. The review under this subsection shall include 

input from interested parties, including suppliers, automakers, safety advocates, the medical community, and research organizations. 

(c) CONTENTS.—The report issued under this section shall include— 

(1) the analysis and conclusions the Administration can 

reach from the amount of motor vehicle crash data collected in 

a given year; 

(2) the additional analysis and conclusions the Administration could reach if more crash investigations were conducted 

each year; 

(3) the number of investigations per year that would allow 

for optimal data analysis and crash information; 

(4) the results of the comprehensive review conducted pursuant to subsection (b); 

(5) the incremental costs of collecting and analyzing additional data, as well as data from additional crashes; 

(6) the potential for obtaining private funding for all or a 

portion of the costs under paragraph (5); 

(7) the potential for recovering any additional costs from 

high volume users of the data, while continuing to make the 

data available to the general public free of charge; 

(8) the advantages or disadvantages of expanding collection 

of non-crash data instead of crash data; 

(9) recommendations for improvements to the Administration’s data collection program; and 

(10) the resources needed by the Administration to implement such recommendations. 

SEC. 31310. UPDATE MEANS OF PROVIDING NOTIFICATION; IMPROVING EFFICACY OF RECALLS. 

(a) UPDATE OF MEANS OF PROVIDING NOTIFICATION.—Section 

30119(d) of title 49, United States Code, is amended— 

(1) in paragraph (1), by striking ‘‘by first class mail’’ and 

inserting ‘‘in the manner prescribed by the Secretary, by regulation’’; 

(2) in paragraph (2)— 

(A) by striking ‘‘(except a tire) shall be sent by first 

class mail’’ and inserting ‘‘shall be sent in the manner prescribed by the Secretary, by regulation,’’; and 

(B) by striking the second sentence; 

(3) in paragraph (3)— 

(A) by striking the first sentence; 

(B) by inserting ‘‘to the notification required under 

paragraphs (1) and (2)’’ after ‘‘addition’’; and 

(C) by inserting ‘‘by the manufacturer’’ after ‘‘given’’; 

and 


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(4) in paragraph (4), by striking ‘‘by certified mail or 

quicker means if available’’ and inserting ‘‘in the manner prescribed by the Secretary, by regulation’’. 

(b) IMPROVING EFFICACY OF RECALLS.—Section 30119(e) of title 

49, United States Code, is amended— 

(1) in the subsection heading, by striking ‘‘SECOND’’ and inserting ‘‘ADDITIONAL’’; 

(2) by striking ‘‘If the Secretary’’ and inserting the following: 

‘‘(1) SECOND NOTIFICATION.—If the Secretary’’; and 

(3) by adding at the end the following: 

‘‘(2) ADDITIONAL NOTIFICATIONS.—If the Secretary determines, after taking into account the severity of the defect or 

noncompliance, that the second notification by a manufacturer 

does not result in an adequate number of motor vehicles or 

items of replacement equipment being returned for remedy, the 

Secretary may order the manufacturer— 

‘‘(A)(i) to send additional notifications in the manner 

prescribed by the Secretary, by regulation; or 

‘‘(ii) to take additional steps to locate and notify each 

person registered under State law as the owner or lessee or 

the most recent purchaser or lessee, as appropriate; and 

‘‘(B) to emphasize the magnitude of the safety risk 

caused by the defect or noncompliance in such notification.’’. 

SEC. 31311. EXPANDING CHOICES OF REMEDY AVAILABLE TO MANUFACTURERS OF REPLACEMENT EQUIPMENT. 

Section 30120 of title 49, United States Code, is amended— 

(1) in subsection (a)(1), by amending subparagraph (B) to 

read as follows: 

‘‘(B) if replacement equipment, by repairing the equipment, replacing the equipment with identical or reasonably 

equivalent equipment, or by refunding the purchase price.’’; 

(2) in the heading of subsection (i), by adding ‘‘OF NEW VE- HICLES OR EQUIPMENT’’ at the end; and 

(3) in the heading of subsection (j), by striking ‘‘REPLACED’’ 

and inserting ‘‘REPLACEMENT’’. 

SEC. 31312. RECALL OBLIGATIONS AND BANKRUPTCY OF MANUFACTURER. 

(a) IN GENERAL.—Chapter 301 of title 49, United States Code, 

is amended by inserting the following after section 30120: 

‘‘§ 30120A. Recall obligations and bankruptcy of a manufacturer 

‘‘A manufacturer’s filing of a petition in bankruptcy under 

chapter 11 of title 11, does not negate the manufacturer’s duty to 

comply with section 30112 or sections 30115 through 30120 of this 

title. In any bankruptcy proceeding, the manufacturer’s obligations 

under such sections shall be treated as a claim of the United States 

Government against such manufacturer, subject to subchapter II of 

chapter 37 of title 31, United States Code, and given priority pursuant to section 3713(a)(1)(A) of such chapter, notwithstanding section 

3713(a)(2), to ensure that consumers are adequately protected from 

any safety defect or noncompliance determined to exist in the manufacturer’s products. This section shall apply equally to actions of a 


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manufacturer taken before or after the filing of a petition in bankruptcy.’’. 

(b) CONFORMING AMENDMENT.—The chapter analysis of chapter 

301 of title 49, United States Code, is amended by inserting after 

the item relating to section 30120 the following: 

‘‘30120A. Recall obligations and bankruptcy of a manufacturer.’’. 

SEC. 31313. REPEAL OF INSURANCE REPORTS AND INFORMATION PROVISION. 

Chapter 331 of title 49, United States Code, is amended— 

(1) in the chapter analysis, by striking the item relating to 

section 33112; and 

(2) by striking section 33112. 

SEC. 31314. MONRONEY STICKER TO PERMIT ADDITIONAL SAFETY RATING CATEGORIES. 

Section 3(g)(2) of the Automobile Information Disclosure Act (15 

U.S.C. 1232(g)(2)), is amended by inserting ‘‘safety rating categories 

that may include’’ after ‘‘refers to’’. 

Subtitle D—Vehicle Electronics and Safety 

Standards 

SEC. 31401. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 

ELECTRONICS, SOFTWARE, AND ENGINEERING EXPERTISE. 

(a) COUNCIL FOR VEHICLE ELECTRONICS, VEHICLE SOFTWARE, AND EMERGING TECHNOLOGIES.— (1) IN GENERAL.—The Secretary shall establish, within the 

National Highway Traffic Safety Administration, a Council for 

Vehicle Electronics, Vehicle Software, and Emerging Technologies (referred to in this section as the ‘‘Council’’) to build, 

integrate, and aggregate the Administration’s expertise in passenger motor vehicle electronics and other new and emerging 

technologies. 

(2) IMPLEMENTATION OF ROADMAP.—The Council shall research the inclusion of emerging lightweight plastic and composite technologies in motor vehicles to increase fuel efficiency, 

lower emissions, meet fuel economy standards, and enhance 

passenger motor vehicle safety through continued utilization of 

the Administration’s Plastic and Composite Intensive Vehicle 

Safety Roadmap (Report No. DOT HS 810 863). 

(3) INTRA-AGENCY COORDINATION.—The Council shall coordinate with all components of the Administration responsible 

for vehicle safety, including research and development, rulemaking, and defects investigation. 

(b) HONORS RECRUITMENT PROGRAM.— 

(1) ESTABLISHMENT.—The Secretary shall establish, within 

the National Highway Traffic Safety Administration, an honors 

program for engineering students, computer science students, 

and other students interested in vehicle safety that will enable 

such students to train with engineers and other safety officials 

for careers in vehicle safety. 

(2) STIPEND.—The Secretary is authorized to provide a stipend to any student during the student’s participation in the 

program established under paragraph (1). 


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(c) ASSESSMENT.—The Council, in consultation with affected 

stakeholders, shall periodically assess the implications of emerging 

safety technologies in passenger motor vehicles, including the effect 

of such technologies on consumers, product availability, and cost. 

SEC. 31402. ELECTRONIC SYSTEMS PERFORMANCE. 

(a) IN GENERAL.—Not later than 2 years after the date of enactment of this Act, the Secretary shall complete an examination of the 

need for safety standards with regard to electronic systems in passenger motor vehicles. In conducting this examination, the Secretary 

shall— 

(1) consider the electronic components, the interaction of 

electronic components, the security needs for those electronic 

systems to prevent unauthorized access, and the effect of surrounding environments on the electronic systems; and 

(2) allow for public comment. 

(b) REPORT.—Upon completion of the examination under subsection (a), the Secretary shall submit a report on the highest priority areas for safety with regard to the electronic systems to the 

Committee on Commerce, Science, and Transportation of the Senate 

and the Committee on Energy and Commerce of the House of Representatives. 

Subtitle E—Child Safety Standards 

SEC. 31501. CHILD SAFETY SEATS. 

(a) SIDE IMPACT CRASHES.—Not later than 2 years after the 

date of enactment of this Act, the Secretary shall issue a final rule 

amending Federal Motor Vehicle Safety Standard Number 213 to 

improve the protection of children seated in child restraint systems 

during side impact crashes. 

(b) FRONTAL IMPACT TEST PARAMETERS.— 

(1) COMMENCEMENT.—Not later than 2 years after the date 

of enactment of this Act, the Secretary shall commence a rulemaking proceeding to amend the standard seat assembly specifications under Federal Motor Vehicle Safety Standard Number 

213 to better simulate a single representative motor vehicle rear 

seat. 

(2) FINAL RULE.—Not later than 4 years after the date of 

enactment of this Act, the Secretary shall issue a final rule pursuant to paragraph (1). 

SEC. 31502. CHILD RESTRAINT ANCHORAGE SYSTEMS. 

(a) INITIATION OF RULEMAKING PROCEEDING.—Not later than 1 

year after the date of enactment of this Act, the Secretary shall initiate a rulemaking proceeding to amend Federal Motor Vehicle Safety Standard Number 225 (relating to child restraint anchorage systems) to improve the ease of use for lower anchorages and tethers 

in all rear seat seating positions if such anchorages and tethers are 

feasible. 

(b) FINAL RULE.— 

(1) IN GENERAL.—Except as provided under paragraph (2) 

and section 31505, the Secretary shall issue a final rule under 

subsection (a) not later than 3 years after the date of enactment 

of this Act. 


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(2) REPORT.—If the Secretary determines that an amendment to the standard referred to in subsection (a) does not meet 

the requirements and considerations set forth in subsections (a) 

and (b) of section 30111 of title 49, United States Code, the Secretary shall submit a report describing the reasons for not prescribing such a standard to— 

(A) the Committee on Commerce, Science, and Transportation of the Senate; and 

(B) the Committee on Energy and Commerce of the 

House of Representatives. 

SEC. 31503. REAR SEAT BELT REMINDERS. 

(a) INITIATION OF RULEMAKING PROCEEDING.—Not later than 2 

years after the date of enactment of this Act, the Secretary shall initiate a rulemaking proceeding to amend Federal Motor Vehicle Safety Standard Number 208 (relating to occupant crash protection) to 

provide a safety belt use warning system for designated seating positions in the rear seat. 

(b) FINAL RULE.— (1) IN GENERAL.—Except as provided under paragraph (2) 

and section 31505, the Secretary shall issue a final rule under 

subsection (a) not later than 3 years after the date of enactment 

of this Act. 

(2) REPORT.—If the Secretary determines that an amendment to the standard referred to in subsection (a) does not meet 

the requirements and considerations set forth in subsections (a) 

and (b) of section 30111 of title 49, United States Code, the Secretary shall submit a report describing the reasons for not prescribing such a standard to— 

(A) the Committee on Commerce, Science, and Transportation of the Senate; and 

(B) the Committee on Energy and Commerce of the 

House of Representatives. 

SEC. 31504. UNATTENDED PASSENGER REMINDERS. 

(a) SAFETY RESEARCH INITIATIVE.—The Secretary may initiate 

research into effective ways to minimize the risk of hyperthermia or 

hypothermia to children or other unattended passengers in rear 

seating positions. 

(b) RESEARCH AREAS.—In carrying out subsection (a), the Secretary may conduct research into the potential viability of— 

(1) vehicle technology to provide an alert that a child or unattended passenger remains in a rear seating position after the 

vehicle motor is disengaged; or 

(2) public awareness campaigns to educate drivers on the 

risks of leaving a child or unattended passenger in a vehicle 

after the vehicle motor is disengaged; or 

(3) other ways to mitigate risk. 

(c) COORDINATION WITH OTHER AGENCIES.—The Secretary may 

collaborate with other Federal agencies in conducting the research 

under this section. 

SEC. 31505. NEW DEADLINE. 

If the Secretary determines that any deadline for issuing a final 

rule under this Act cannot be met, the Secretary shall— 

(1) provide the Committee on Commerce, Science, and 

Transportation of the Senate and the Committee on Energy and 


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Commerce of the House of Representatives with an explanation 

for why such deadline cannot be met; and 

(2) establish a new deadline for that rule. 

Subtitle F—Improved Daytime and Nighttime Visibility of Agricultural Equipment 

SEC. 31601. RULEMAKING ON VISIBILITY OF AGRICULTURAL EQUIPMENT. 

(a) DEFINITIONS.—In this section: 

(1) AGRICULTURAL EQUIPMENT.—The term ‘‘agricultural 

equipment’’ has the meaning given the term ‘‘agricultural field 

equipment’’ in ASABE Standard 390.4, entitled ‘‘Definitions 

and Classifications of Agricultural Field Equipment’’, which 

was published in January 2005 by the American Society of Agriculture and Biological Engineers, or any successor standard. 

(2) PUBLIC ROAD.—The term ‘‘public road’’ has the meaning 

given the term in section 101(a)(27) of title 23, United States 

Code. 

(b) RULEMAKING.— 

(1) IN GENERAL.—Not later than 2 years after the date of 

enactment of this Act, the Secretary of Transportation, after 

consultation with representatives of the American Society of Agricultural and Biological Engineers and appropriate Federal 

agencies, and with other appropriate persons, shall promulgate 

a rule to improve the daytime and nighttime visibility of agricultural equipment that may be operated on a public road. 

(2) MINIMUM STANDARDS.—The rule promulgated pursuant 

to this subsection shall— 

(A) establish minimum lighting and marking standards for applicable agricultural equipment manufactured 

at least 1 year after the date on which such rule is promulgated; and 

(B) provide for the methods, materials, specifications, 

and equipment to be employed to comply with such standards, which shall be equivalent to ASABE Standard 

279.14, entitled ‘‘Lighting and Marking of Agricultural 

Equipment on Highways’’, which was published in July 

2008 by the American Society of Agricultural and Biological Engineers, or any successor standard. 

(c) REVIEW.—Not less frequently than once every 5 years, the 

Secretary of Transportation shall— 

(1) review the standards established pursuant to subsection 

(b); and 

(2) revise such standards to reflect the revision of ASABE 

Standard 279 that is in effect at the time of such review. 

(d) LIMITATIONS.— 

(1) COMPLIANCE WITH SUCCESSOR STANDARDS.—Any rule 

promulgated pursuant to this section may not prohibit the operation on public roads of agricultural equipment that is 

equipped in accordance with any adopted revision of ASABE 

Standard 279 that is later than the revision of such standard 

that was referenced during the promulgation of the rule. 


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(2) NO RETROFITTING REQUIRED.—Any rule promulgated 

pursuant to this section may not require the retrofitting of agricultural equipment that was manufactured before the date on 

which the lighting and marking standards are enforceable 

under subsection (b)(2)(A). 

(3) NO EFFECT ON ADDITIONAL MATERIALS AND EQUIPMENT.—Any rule promulgated pursuant to this section may not 

prohibit the operation on public roads of agricultural equipment that is equipped with materials or equipment that are in 

addition to the minimum materials and equipment specified in 

the standard upon which such rule is based. 

TITLE II—COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 

2012 

SEC. 32001. SHORT TITLE. 

This title may be cited as the ‘‘Commercial Motor Vehicle Safety 

Enhancement Act of 2012’’. 

SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE. 

Except as otherwise expressly provided, whenever in this title an 

amendment or repeal is expressed in terms of an amendment to, or 

a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United 

States Code. 

Subtitle A—Commercial Motor Vehicle 

Registration 

SEC. 32101. REGISTRATION OF MOTOR CARRIERS. 

(a) REGISTRATION REQUIREMENTS.—Section 13902(a)(1) is 

amended to read as follows: 

‘‘(1) IN GENERAL.—Except as otherwise provided in this section, the Secretary of Transportation shall register a person to 

provide transportation subject to jurisdiction under subchapter 

I of chapter 135 as a motor carrier only if the Secretary determines that the person— 

‘‘(A) is willing and able to comply with— 

‘‘(i) this part and the applicable regulations of the 

Secretary and the Board; 

‘‘(ii) any safety regulations imposed by the Secretary; 

‘‘(iii) the duties of employers and employees established by the Secretary under section 31135; 

‘‘(iv) the safety fitness requirements established by 

the Secretary under section 31144; 

‘‘(v) the accessibility requirements established by 

the Secretary under subpart H of part 37 of title 49, 

Code of Federal Regulations (or successor regulations), 

for transportation provided by an over-the-road bus; 

and 


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‘‘(vi) the minimum financial responsibility requirements established by the Secretary under sections 

13906, 31138, and 31139; 

‘‘(B) has been issued a USDOT number under section 

31134; 

‘‘(C) has disclosed any relationship involving common 

ownership, common management, common control, or common familial relationship between that person and any 

other motor carrier, freight forwarder, or broker, or any 

other applicant for motor carrier, freight forwarder, or 

broker registration, if the relationship occurred in the 3- 

year period preceding the date of the filing of the application for registration; and 

‘‘(D) after the Secretary establishes a written proficiency examination pursuant to section 32101(b) of the 

Commercial Motor Vehicle Safety Enhancement Act of 

2012, has passed the written proficiency examination.’’. 

(b) WRITTEN PROFICIENCY EXAMINATION.— Not later than 18 months after the date of enactment of this 

Act, the Secretary shall establish through a rulemaking a written proficiency examination for applicant motor carriers pursuant to section 13902(a)(1)(D) of title 49, United States Code. 

The written proficiency examination shall test a person’s knowledge of applicable safety regulations, standards, and orders of 

the Federal government. 

(c) CONFORMING AMENDMENT.—Section 210(b) of the Motor 

Carrier Safety Improvement Act of 1999 (49 U.S.C. 31144 note) is 

amended— 

(1) by inserting ‘‘, commercial regulations, and provisions of 

subpart H of part 37 of title 49, Code of Federal Regulations, 

or successor regulations’’ after ‘‘applicable safety regulations’’; 

and 

(2) by striking ‘‘consider the establishment of’’ and inserting 

‘‘establish’’. 

(d) TRANSPORTATION OF AGRICULTURAL COMMODITIES AND

FARM SUPPLIES.—Section 229(a)(1) of the Motor Carrier Safety Improvement Act of 1999 (49 U.S.C. 31136 note) is amended to read 

as follows: 

‘‘(1) TRANSPORTATION OF AGRICULTURAL COMMODITIES AND

FARM SUPPLIES.—Regulations prescribed by the Secretary under 

sections 31136 and 31502 regarding maximum driving and onduty time for drivers used by motor carriers shall not apply 

during planting and harvest periods, as determined by each 

State, to— 

‘‘(A) drivers transporting agricultural commodities 

from the source of the agricultural commodities to a location within a 150 air-mile radius from the source; 

‘‘(B) drivers transporting farm supplies for agricultural 

purposes from a wholesale or retail distribution point of the 

farm supplies to a farm or other location where the farm 

supplies are intended to be used within a 150 air-mile radius from the distribution point; or 

‘‘(C) drivers transporting farm supplies for agricultural 

purposes from a wholesale distribution point of the farm 

supplies to a retail distribution point of the farm supplies 


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within a 150 air-mile radius from the wholesale distribution point.’’. 

SEC. 32102. SAFETY FITNESS OF NEW OPERATORS. 

(a) SAFETY REVIEWS OF NEW OPERATORS.—Section 31144(g)(1) 

is amended to read as follows: 

‘‘(1) SAFETY REVIEW.— 

‘‘(A) IN GENERAL.—Except as provided under subparagraph (B), the Secretary shall require, by regulation, each 

owner and each operator granted new registration under 

section 13902 or 31134 to undergo a safety review not later 

than 12 months after the owner or operator, as the case 

may be, begins operations under such registration. 

‘‘(B) PROVIDERS OF MOTORCOACH SERVICES.—The Secretary shall require, by regulation, each owner and each operator granted new registration to transport passengers 

under section 13902 or 31134 to undergo a safety review 

not later than 120 days after the owner or operator, as the 

case may be, begins operations under such registration.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect 1 year after the date of enactment of this Act. 

SEC. 32103. REINCARNATED CARRIERS. 

(a) EFFECTIVE PERIODS OF REGISTRATION.— 

(1) SUSPENSIONS, AMENDMENTS, AND REVOCATIONS.—Section 13905(d) is amended— 

(A) by redesignating paragraph (2) as paragraph (4); 

(B) by striking paragraph (1) and inserting the following: 

‘‘(1) APPLICATIONS.—On application of the registrant, the 

Secretary may amend or revoke a registration. 

‘‘(2) COMPLAINTS AND ACTIONS ON SECRETARY’S OWN INITIATIVE.—On complaint or on the Secretary’s own initiative and 

after notice and an opportunity for a proceeding, the Secretary 

may— 

‘‘(A) suspend, amend, or revoke any part of the registration of a motor carrier, broker, or freight forwarder for willful failure to comply with— 

‘‘(i) this part; 

‘‘(ii) an applicable regulation or order of the Secretary or the Board, including the accessibility requirements established by the Secretary under subpart H of 

part 37 of title 49, Code of Federal Regulations (or successor regulations), for transportation provided by an 

over-the-road bus; or 

‘‘(iii) a condition of its registration; 

‘‘(B) withhold, suspend, amend, or revoke any part of 

the registration of a motor carrier, broker, or freight forwarder for failure— 

‘‘(i) to pay a civil penalty imposed under chapter 5, 

51, 149, or 311; 

‘‘(ii) to arrange and abide by an acceptable payment plan for such civil penalty, not later than 90 days 

after the date specified by order of the Secretary for the 

payment of such penalty; or 


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‘‘(iii) for failure to obey a subpoena issued by the 

Secretary; 

‘‘(C) withhold, suspend, amend, or revoke any part of 

a registration of a motor carrier, broker, or freight forwarder following a determination by the Secretary that the 

motor carrier, broker, or freight forwarder failed to disclose, in its application for registration, a material fact relevant to its willingness and ability to comply with— 

‘‘(i) this part; 

‘‘(ii) an applicable regulation or order of the Secretary or the Board; or 

‘‘(iii) a condition of its registration; or 

‘‘(D) withhold, suspend, amend, or revoke any part of 

a registration of a motor carrier, broker, or freight forwarder if the Secretary finds that— 

‘‘(i) the motor carrier, broker, or freight forwarder 

does not disclose any relationship through common 

ownership, common management, common control, or 

common familial relationship to any other motor carrier, broker, or freight forwarder, or any other applicant for motor carrier, broker, or freight forwarder registration that the Secretary determines is or was unwilling or unable to comply with the relevant requirements listed in section 13902, 13903, or 13904 

‘‘(3) LIMITATION.—Paragraph (2)(B) shall not apply to a 

person who is unable to pay a civil penalty because the person 

is a debtor in a case under chapter 11 of title 11.’’; and 

(C) in paragraph (4), as redesignated by section 

32103(a)(1)(A) of this Act, by striking ‘‘paragraph (1)(B)’’ 

and inserting ‘‘paragraph (2)(B)’’. 

(2) PROCEDURE.—Section 13905(e) is amended by inserting 

‘‘or if the Secretary determines that the registrant failed to disclose a material fact in an application for registration in accordance with subsection (d)(2)(C),’’ after ‘‘registrant,’’. 

(b) INFORMATION SYSTEMS.—Section 31106(a)(3) is amended— 

(1) in subparagraph (F), by striking ‘‘and’’ at the end; 

(2) in subparagraph (G), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(H) determine whether a person or employer is or was 

related, through common ownership, common management, 

common control, or common familial relationship, to any 

other person, employer, or any other applicant for registration under section 13902 or 31134.’’. 

SEC. 32104. FINANCIAL RESPONSIBILITY REQUIREMENTS. 

Not later than 6 months after the date of enactment of this Act, 

and every 4 years thereafter, the Secretary shall— 

(1) issue a report on the appropriateness of— 

(A) the current minimum financial responsibility requirements under sections 31138 and 31139 of title 49, 

United States Code; and 

(B) the current bond and insurance requirements under 

sections 13904(f), 13903, and 13906 of title 49, United 

States Code; and 


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(2) submit the report issued under paragraph (1) to the 

Committee on Commerce, Science, and Transportation of the 

Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 

SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT. 

(a) IN GENERAL.—Chapter 311 is amended by inserting after 

section 31133 the following: 

‘‘§ 31134. Requirement for registration and USDOT number 

‘‘(a) IN GENERAL.—Upon application, and subject to subsections 

(b) and (c), the Secretary shall register an employer or person subject to the safety jurisdiction of this subchapter. An employer or person may operate a commercial motor vehicle in interstate commerce 

only if the employer or person is registered by the Secretary under 

this section and receives a USDOT number. Nothing in this section 

shall preclude registration by the Secretary of an employer or person 

not engaged in interstate commerce. An employer or person subject 

to jurisdiction under subchapter I of chapter 135 of this title shall 

apply for commercial registration under section 13902 of this title. 

‘‘(b) WITHHOLDING REGISTRATION.—The Secretary shall register 

an employer or person under subsection (a) only if the Secretary determines that— 

‘‘(1) the employer or person seeking registration is willing 

and able to comply with the requirements of this subchapter 

and the regulations prescribed thereunder and chapter 51 and 

the regulations prescribed thereunder; 

‘‘(2)(A) during the 3-year period before the date of the filing 

of the application, the employer or person is not or was not related through common ownership, common management, common control, or common familial relationship to any other person or applicant for registration subject to this subchapter who, 

during such 3-year period, is or was unfit, unwilling, or unable 

to comply with the requirements listed in subsection (b)(1); or 

‘‘(B) the employer or person has disclosed to the Secretary 

any relationship involving common ownership, common management, common control, or common familial relationship to 

any other person or applicant for registration subject to this 

subchapter. 

‘‘(c) REVOCATION OR SUSPENSION OF REGISTRATION.—The Secretary shall revoke the registration of an employer or person issued 

under subsection (a) after notice and an opportunity for a proceeding, or suspend the registration after giving notice of the suspension to the employer or person, if the Secretary determines that— 

‘‘(1) the employer’s or person’s authority to operate pursuant 

to chapter 139 of this title is subject to revocation or suspension 

under sections 13905(d)(1) or 13905(f) of this title; 

‘‘(2) the employer or person has knowingly failed to comply 

with the requirements listed in subsection (b)(1); 

‘‘(3) the employer or person has not disclosed any relationship through common ownership, common management, common control, or common familial relationship to any other person or applicant for registration subject to this subchapter that 

the Secretary determines is or was unfit, unwilling, or unable 

to comply with the requirements listed in subsection (b)(1); 


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‘‘(4) the employer or person refused to submit to the safety 

review required by section 31144(g) of this title. 

‘‘(d) PERIODIC REGISTRATION UPDATE.—The Secretary may require an employer to update a registration under this section not 

later than 30 days after a change in the employer’s address, other 

contact information, officers, process agent, or other essential information, as determined by the Secretary. 

‘‘(e) STATE AUTHORITY.—Nothing in this section shall be construed as affecting the authority of a State to issue a Department 

of Transportation number under State law to a person operating in 

intrastate commerce.’’. 

(b) CONFORMING AMENDMENT.—The analysis of chapter 311 is 

amended by inserting after the item relating to section 31133 the 

following: 

‘‘31134. Requirement for registration and USDOT number.’’. 

SEC. 32106. REGISTRATION FEE SYSTEM. 

Section 13908(d)(1) is amended by striking ‘‘but shall not exceed 

$300’’. 

SEC. 32107. REGISTRATION UPDATE. 

(a) MOTOR CARRIER UPDATE.—Section 13902 is amended by 

adding at the end the following: 

‘‘(h) UPDATE OF REGISTRATION.— 

‘‘(1) IN GENERAL.—The Secretary shall require a registrant 

to update its registration under this section not later than 30 

days after a change in the registrant’s address, other contact information, officers, process agent, or other essential information, 

as determined by the Secretary. 

‘‘(2) MOTOR CARRIERS OF PASSENGERS.—In addition to the 

requirements of paragraph (1), the Secretary shall require a 

motor carrier of passengers to update its registration information, including numbers of vehicles, annual mileage, and individuals responsible for compliance with Federal safety regulations quarterly for the first 2 years after being issued a registration under this section.’’. 

(b) FREIGHT FORWARDER UPDATE.—Section 13903 is amended 

by adding at the end the following: 

‘‘(c) UPDATE OF REGISTRATION.—The Secretary shall require a 

freight forwarder to update its registration under this section not 

later than 30 days after a change in the freight forwarder’s address, 

other contact information, officers, process agent, or other essential 

information, as determined by the Secretary.’’. 

(c) BROKER UPDATE.—Section 13904 is amended by adding at 

the end the following: 

‘‘(e) UPDATE OF REGISTRATION.—The Secretary shall require a 

broker to update its registration under this section not later than 30 

days after a change in the broker’s address, other contact information, officers, process agent, or other essential information, as determined by the Secretary.’’. 

SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT REGISTRATION. 

(a) PENALTIES.—Section 14901(a) is amended— 

(1) by striking ‘‘$500’’ and inserting ‘‘$1,000’’; 

(2) by striking ‘‘who is not registered under this part to provide transportation of passengers,’’; 


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(3) by striking ‘‘with respect to providing transportation of 

passengers,’’ and inserting ‘‘or section 13902(c) of this title,’’; 

and 

(4) by striking ‘‘$2,000 for each violation and each addi- tional day the violation continues’’ and inserting ‘‘$10,000 for 

each violation, or $25,000 for each violation relating to providing transportation of passengers’’. 

(b) TRANSPORTATION OF HAZARDOUS WASTES.—Section 

14901(b) is amended by striking ‘‘not to exceed $20,000’’ and inserting ‘‘not less than $20,000, but not to exceed $40,000’’. 

SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD. 

Section 13905(f)(2) is amended to read as follows: 

‘‘(2) IMMINENT HAZARD TO PUBLIC HEALTH.—Notwithstanding subchapter II of chapter 5 of title 5, the Secretary 

shall revoke the registration of a motor carrier if the Secretary 

finds that the carrier is or was conducting unsafe operations 

that are or were an imminent hazard to public health or property.’’. 

SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES 

FOR FAILURE TO RESPOND TO SUBPOENA. 

Section 525 is amended— 

(1) by striking ‘‘subpenas’’ in the section heading and inserting ‘‘subpoenas’’; 

(2) by striking ‘‘subpena’’ and inserting ‘‘subpoena’’; 

(3) by striking ‘‘$100’’ and inserting ‘‘$1,000’’; 

(4) by striking ‘‘$5,000’’ and inserting ‘‘$10,000’’; and 

(5) by adding at the end the following: 

‘‘The Secretary may withhold, suspend, amend, or revoke any 

part of the registration of a person required to register under chapter 139 for failing to obey a subpoena or requirement of the Secretary under this chapter to appear and testify or produce records.’’. 

SEC. 32111. FLEETWIDE OUT OF SERVICE ORDER FOR OPERATING 

WITHOUT REQUIRED REGISTRATION. 

Section 13902(e)(1) is amended— 

(1) by striking ‘‘motor vehicle’’ and inserting ‘‘motor carrier’’ 

after ‘‘the Secretary determines that a’’; and 

(2) by striking ‘‘order the vehicle’’ and inserting ‘‘order the 

motor carrier operations’’ after ‘‘the Secretary may’’. 

SEC. 32112. MOTOR CARRIER AND OFFICER PATTERNS OF SAFETY VIOLATIONS. 

Section 31135 is amended— 

(1) by striking subsection (b) and inserting the following: 

‘‘(b) NONCOMPLIANCE.— 

‘‘(1) MOTOR CARRIERS.—Two or more motor carriers, employers, or persons shall not use common ownership, common 

management, common control, or common familial relationship 

to enable any or all such motor carriers, employers, or persons 

to avoid compliance, or mask or otherwise conceal non-compliance, or a history of non-compliance, with regulations prescribed under this subchapter or an order of the Secretary 

issued under this subchapter. 

‘‘(2) PATTERN.—If the Secretary finds that a motor carrier, 

employer, or person engaged in a pattern or practice of avoiding 

compliance, or masking or otherwise concealing noncompliance, 


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with regulations prescribed under this subchapter, the Secretary— 

‘‘(A) may withhold, suspend, amend, or revoke any part 

of the motor carrier’s, employer’s, or person’s registration in 

accordance with section 13905 or 31134; and 

‘‘(B) shall take into account such non-compliance for 

purposes of determining civil penalty amounts under section 521(b)(2)(D). 

‘‘(3) OFFICERS.—If the Secretary finds, after notice and an 

opportunity for proceeding, that an officer of a motor carrier, 

employer, or owner or operator has engaged in a pattern or 

practice of, or assisted a motor carrier, employer, or owner or 

operator in avoiding compliance, or masking or otherwise concealing noncompliance, while serving as an officer or such 

motor carrier, employer, or owner or operator, the Secretary 

may suspend, amend, or revoke any part of a registration granted to the officer individually under section 13902 or 31134.’’. 

Subtitle B—Commercial Motor Vehicle 

Safety 

SEC. 32201. CRASHWORTHINESS STANDARDS. 

(a) IN GENERAL.—Not later than 18 months after the date of enactment of this Act, the Secretary shall conduct a comprehensive 

analysis on the need for crashworthiness standards on property-carrying commercial motor vehicles with a gross vehicle weight rating 

or gross vehicle weight of at least 26,001 pounds involved in interstate commerce, including an evaluation of the need for roof 

strength, pillar strength, air bags, and other occupant protections 

standards, and frontal and back wall standards. 

(b) REPORT.—Not later than 90 days after completing the comprehensive analysis under subsection (a), the Secretary shall report 

the results of the analysis and any recommendations to the Committee on Commerce, Science, and Transportation of the Senate and 

the Committee on Transportation and Infrastructure of the House of 

Representatives. 

SEC. 32202. CANADIAN SAFETY RATING RECIPROCITY. 

Section 31144 is amended by adding at the end the following: 

‘‘(h) RECOGNITION OF CANADIAN MOTOR CARRIER SAFETY FIT- NESS DETERMINATIONS.— ‘‘(1) If an authorized agency of the Canadian federal government or a Canadian Territorial or Provincial government 

determines, by applying the procedure and standards prescribed by the Secretary under subsection (b) or pursuant to an 

agreement under paragraph (2), that a Canadian employer is 

unfit and prohibits the employer from operating a commercial 

motor vehicle in Canada or any Canadian Province, the Secretary may prohibit the employer from operating such vehicle in 

interstate and foreign commerce until the authorized Canadian 

agency determines that the employer is fit. 

‘‘(2) The Secretary may consult and participate in negotiations with authorized officials of the Canadian federal government or a Canadian Territorial or Provincial government, as 

necessary, to provide reciprocal recognition of each country’s 


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motor carrier safety fitness determinations. An agreement shall 

provide, to the maximum extent practicable, that each country 

will follow the procedure and standards prescribed by the Secretary under subsection (b) in making motor carrier safety fitness determinations.’’. 

SEC. 32203. STATE REPORTING OF FOREIGN COMMERCIAL DRIVER 

CONVICTIONS. 

(a) DEFINITION OF FOREIGN COMMERCIAL DRIVER.—Section 

31301 is amended— 

(1) by redesignating paragraphs (10) through (14) as paragraphs (11) through (15), respectively; and 

(2) by inserting after paragraph (9) the following: 

‘‘(10) ‘foreign commercial driver’ means an individual licensed to operate a commercial motor vehicle by an authority 

outside the United States, or a citizen of a foreign country who 

operates a commercial motor vehicle in the United States.’’. 

(b) STATE REPORTING OF CONVICTIONS.—Section 31311(a) is 

amended by adding after paragraph (21) the following: 

‘‘(22) The State shall report a conviction of a foreign commercial driver by that State to the Federal Convictions and 

Withdrawal Database, or another information system designated by the Secretary to record the convictions. A report 

shall include— 

‘‘(A) for a driver holding a foreign commercial driver’s 

license— 

‘‘(i) each conviction relating to the operation of a 

commercial motor vehicle; and 

‘‘(ii) each conviction relating to the operation of a 

non-commercial motor vehicle; and 

‘‘(B) for an unlicensed driver or a driver holding a foreign non-commercial driver’s license, each conviction relating to the operation of a commercial motor vehicle.’’. 

SEC. 32204. AUTHORITY TO DISQUALIFY FOREIGN COMMERCIAL DRIVERS. 

Section 31310 is amended by adding at the end the following: 

‘‘(k) FOREIGN COMMERCIAL DRIVERS.—A foreign commercial 

driver shall be subject to disqualification under this section.’’. 

SEC. 32205. REVOCATION OF FOREIGN MOTOR CARRIER OPERATING 

AUTHORITY FOR FAILURE TO PAY CIVIL PENALTIES. 

Section 13905(d)(2), as amended by section 32103(a) of this Act, 

is amended by inserting ‘‘foreign motor carrier, foreign motor private carrier,’’ after ‘‘registration of a motor carrier,’’ each place it appears. 

SEC. 32206. RENTAL TRUCK ACCIDENT STUDY. 

(a) DEFINITIONS.—In this section: 

(1) RENTAL TRUCK.—The term ‘‘rental truck’’ means a motor 

vehicle with a gross vehicle weight rating of between 10,000 and 

26,000 pounds that is made available for rental by a rental 

truck company. 

(2) RENTAL TRUCK COMPANY.—The term ‘‘rental truck company’’ means a person or company that is in the business of 

renting or leasing rental trucks to the public or for private use. 

(b) STUDY.— 


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(1) IN GENERAL.—The Secretary shall conduct a study of 

the safety of rental trucks during the 7-year period ending on 

December 31, 2011. 

(2) REQUIREMENTS.—The study conducted under paragraph (1) shall— 

(A) evaluate available data on the number of crashes, 

fatalities, and injuries involving rental trucks and the 

cause of such crashes, utilizing police accident reports and 

other sources; 

(B) estimate the property damage and costs resulting 

from a subset of crashes involving rental truck operations, 

which the Secretary believes adequately reflect all crashes 

involving rental trucks; 

(C) analyze State and local laws regulating rental 

truck companies, including safety and inspection requirements; 

(D) assess the rental truck maintenance programs of a 

selection of small, medium, and large rental truck companies, as selected by the Secretary, including the frequency 

of rental truck maintenance inspections, and compare such 

programs with inspection requirements for passenger vehicles and commercial motor vehicles; 

(E) include any other information available regarding 

the safety of rental trucks; and 

(F) review any other information that the Secretary determines to be appropriate. 

(c) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Secretary shall submit a report to the Committee on 

Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives that contains— 

(1) the findings of the study conducted pursuant to subsection (b); and 

(2) any recommendations for legislation that the Secretary 

determines to be appropriate. 

Subtitle C—Driver Safety 

SEC. 32301. HOURS OF SERVICE STUDY AND ELECTRONIC LOGGING 

DEVICES. 

(a) HOURS OF SERVICE STUDY.— (1) FIELD STUDY.— (A) IN GENERAL.—Not later than March 31, 2013, the 

Secretary shall complete a field study on the efficacy of the 

restart rule published on December 27, 2011 (in this section 

referred to as the ‘‘2011 restart rule’’), applicable to operators of commercial motor vehicles of property subject to 

maximum driving time requirements of the Secretary. 

(B) REQUIREMENT.—The field study shall expand upon 

the results of the laboratory-based study relating to commercial motor vehicle driver fatigue sponsored by the Federal Motor Carrier Safety Administration presented in the 

report of December 2010 titled ‘‘Investigation into Motor 

Carrier Practices to Achieve Optimal Commercial Motor 

Vehicle Driver Performance: Phase I’’. 


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(C) CRITERIA.—In conducting the field study, the Secretary shall ensure that— 

(i) the methodology for the field study is consistent, 

to the maximum extent possible, with the laboratorybased study methodology; 

(ii) the data collected is representative of the drivers and motor carriers regulated by the hours of service 

regulations, including those drivers and carriers affected by the maximum driving time requirements; 

(iii) the analysis is statistically valid; and 

(iv) the field study follows the plan for the ‘‘Scheduling and Fatigue Recovery Project’’ developed by the 

Federal Motor Carrier Safety Administration. 

(D) REPORT TO CONGRESS.—Not later than September 

30, 2013, the Secretary shall submit to the Committee on 

Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and 

Transportation of the Senate a report detailing the results 

of the field study. 

(b) GENERAL AUTHORITY.—Section 31137 is amended— 

(1) by amending the section heading to read as follows: 

‘‘§ 31137. Electronic logging devices and brake maintenance 

regulations’’; 

(2) by redesignating subsection (b) as subsection (g); and 

(3) by amending (a) to read as follows: 

‘‘(a) USE OF ELECTRONIC LOGGING DEVICES.—Not later than 1 

year after the date of enactment of the Commercial Motor Vehicle 

Safety Enhancement Act of 2012, the Secretary of Transportation 

shall prescribe regulations— 

‘‘(1) requiring a commercial motor vehicle involved in interstate commerce and operated by a driver subject to the hours 

of service and the record of duty status requirements under part 

395 of title 49, Code of Federal Regulations, be equipped with 

an electronic logging device to improve compliance by an operator of a vehicle with hours of service regulations prescribed by 

the Secretary; and 

‘‘(2) ensuring that an electronic logging device is not used 

to harass a vehicle operator. 

‘‘(b) ELECTRONIC LOGGING DEVICE REQUIREMENTS.— 

‘‘(1) IN GENERAL.—The regulations prescribed under subsection (a) shall— 

‘‘(A) require an electronic logging device— 

‘‘(i) to accurately record commercial driver hours of 

service; 

‘‘(ii) to record the location of a commercial motor 

vehicle; 

‘‘(iii) to be tamper resistant; and 

‘‘(iv) to be synchronized to the operation of the vehicle engine or be capable of recognizing when the vehicle is being operated; 

‘‘(B) allow law enforcement to access the data contained 

in the device during a roadside inspection; and 


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‘‘(C) apply to a commercial motor vehicle beginning on 

the date that is 2 years after the date that the regulations 

are published as a final rule. 

‘‘(2) PERFORMANCE AND DESIGN STANDARDS.—The regulations prescribed under subsection (a) shall establish performance standards— 

‘‘(A) defining a standardized user interface to aid vehicle operator compliance and law enforcement review; 

‘‘(B) establishing a secure process for standardized— 

‘‘(i) and unique vehicle operator identification; 

‘‘(ii) data access; 

‘‘(iii) data transfer for vehicle operators between 

motor vehicles; 

‘‘(iv) data storage for a motor carrier; and 

‘‘(v) data transfer and transportability for law enforcement officials; 

‘‘(C) establishing a standard security level for an electronic logging device and related components to be tamper 

resistant by using a methodology endorsed by a nationally 

recognized standards organization; and 

‘‘(D) identifying each driver subject to the hours of service and record of duty status requirements under part 395 

of title 49, Code of Federal Regulations. 

‘‘(c) CERTIFICATION CRITERIA.— 

‘‘(1) IN GENERAL.—The regulations prescribed by the Secretary under this section shall establish the criteria and a process for the certification of electronic logging devices to ensure 

that the device meets the performance requirements under this 

section. 

‘‘(2) EFFECT OF NONCERTIFICATION.—Electronic logging devices that are not certified in accordance with the certification 

process referred to in paragraph (1) shall not be acceptable evidence of hours of service and record of duty status requirements 

under part 395 of title 49, Code of Federal Regulations. 

‘‘(d) ADDITIONAL CONSIDERATIONS.—The Secretary, in prescribing the regulations described in subsection (a), shall consider 

how such regulations may— 

‘‘(1) reduce or eliminate requirements for drivers and motor 

carriers to retain supporting documentation associated with 

paper-based records of duty status if— 

‘‘(A) data contained in an electronic logging device supplants such documentation; and 

‘‘(B) using such data without paper-based records does 

not diminish the Secretary’s ability to audit and review 

compliance with the Secretary’s hours of service regulations; and 

‘‘(2) include such measures as the Secretary determines are 

necessary to protect the privacy of each individual whose personal data is contained in an electronic logging device. 

‘‘(e) USE OF DATA.— 

‘‘(1) IN GENERAL.—The Secretary may utilize information 

contained in an electronic logging device only to enforce the Secretary’s motor carrier safety and related regulations, including 

record-of-duty status regulations. 


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‘‘(2) MEASURES TO PRESERVE CONFIDENTIALITY OF PER- SONAL DATA.—The Secretary shall institute appropriate measures to preserve the confidentiality of any personal data contained in an electronic logging device and disclosed in the 

course of an action taken by the Secretary or by law enforcement officials to enforce the regulations referred to in paragraph (1). 

‘‘(3) ENFORCEMENT.—The Secretary shall institute appropriate measures to ensure any information collected by electronic logging devices is used by enforcement personnel only for 

the purpose of determining compliance with hours of service requirements. 

‘‘(f) DEFINITIONS.—In this section: 

‘‘(1) ELECTRONIC LOGGING DEVICE.—The term ‘electronic 

logging device’ means an electronic device that— 

‘‘(A) is capable of recording a driver’s hours of service 

and duty status accurately and automatically; and 

‘‘(B) meets the requirements established by the Secretary through regulation. 

‘‘(2) TAMPER RESISTANT.—The term ‘tamper resistant’ 

means resistant to allowing any individual to cause an electronic device to record the incorrect date, time, and location for 

changes to on-duty driving status of a commercial motor vehicle 

operator under part 395 of title 49, Code of Federal Regulations, or to subsequently alter the record created by that device.’’. 

(c) CIVIL PENALTIES.—Section 30165(a)(1) is amended by striking ‘‘or 30141 through 30147’’ and inserting ‘‘30141 through 30147, 

or 31137’’. 

(d) CONFORMING AMENDMENT.—The analysis for chapter 311 is 

amended by striking the item relating to section 31137 and inserting the following: 

‘‘31137. Electronic logging devices and brake maintenance regulations.’’. 

SEC. 32302. DRIVER MEDICAL QUALIFICATIONS. 

(a) DEADLINE FOR ESTABLISHMENT OF NATIONAL REGISTRY OF

MEDICAL EXAMINERS.—Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a national registry of 

medical examiners in accordance with section 31149(d)(1) of title 

49, United States Code. 

(b) EXAMINATION REQUIREMENT FOR NATIONAL REGISTRY OF

MEDICAL EXAMINERS.—Section 31149(c)(1)(D) is amended to read 

as follows: 

‘‘(D) not later than 1 year after enactment of the Commercial Motor Vehicle Safety Enhancement Act of 2012, develop requirements for a medical examiner to be listed in 

the national registry under this section, including— 

‘‘(i) the completion of specific courses and materials; 

‘‘(ii) certification, including, at a minimum, selfcertification, if the Secretary determines that self-certification is necessary for sufficient participation in the 

national registry, to verify that a medical examiner 

completed specific training, including refresher courses, 

that the Secretary determines necessary to be listed in 

the national registry; 


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‘‘(iii) an examination that requires a passing 

grade; and 

‘‘(iv) demonstration of a medical examiner’s willingness to meet the reporting requirements established 

by the Secretary;’’. 

(c) ADDITIONAL OVERSIGHT OF LICENSING AUTHORITIES.— (1) IN GENERAL.—Section 31149(c)(1) is amended— 

(A) by amending subparagraph (E) to read as follows: 

‘‘(E) require medical examiners to transmit electronically, on a monthly basis, the name of the applicant, a numerical identifier, and additional information contained on 

the medical examiner’s certificate for any completed medical examination report required under section 391.43 of 

title 49, Code of Federal Regulations, to the chief medical 

examiner;’’; 

(B) in subparagraph (F), by striking the period at the 

end and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(G) annually review the implementation of commercial 

driver’s license requirements by not fewer than 10 States to 

assess the accuracy, validity, and timeliness of— 

‘‘(i) the submission of physical examination reports 

and medical certificates to State licensing agencies; 

and 

‘‘(ii) the processing of the submissions by State licensing agencies.’’. 

(2) INTERNAL OVERSIGHT POLICY.— (A) IN GENERAL.—Not later than 2 years after the date 

of enactment of this Act, the Secretary shall establish an 

oversight policy and procedure to carry out section 

31149(c)(1)(G) of title 49, United States Code, as added by 

section 32302(c)(1) of this Act. 

(B) EFFECTIVE DATE.—The amendments made by section 32303(c)(1) of this Act shall take effect on the date the 

oversight policies and procedures are established pursuant 

to subparagraph (A). 

(d) ELECTRONIC FILING OF MEDICAL EXAMINATION CERTIFI- CATES.—Section 31311(a), as amended by sections 32203(b) and 

32305(b) of this Act, is amended by adding at the end the following: 

‘‘(25) Not later than 5 years after the date of enactment of 

the Commercial Motor Vehicle Safety Enhancement Act of 2012, 

the State shall establish and maintain, as part of its driver information system, the capability to receive an electronic copy of 

a medical examiner’s certificate, from a certified medical examiner, for each holder of a commercial driver’s license issued by 

the State who operates or intends to operate in interstate commerce.’’. 

(e) FUNDING.—The Secretary is authorized to utilize funds provided under section 4101(c)(1) of SAFETEA-LU (119 Stat. 1715) to 

support development of costs of the information technology needed 

to carry out section 31311(a)(25) of title 49, United States Code. 

SEC. 32303. COMMERCIAL DRIVER’S LICENSE NOTIFICATION SYSTEM. 

(a) IN GENERAL.—Section 31304 is amended— 

(1) by striking ‘‘An employer’’ and inserting the following: 

‘‘(a) IN GENERAL.—An employer’’; and 


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(2) by adding at the end the following: 

‘‘(b) DRIVER VIOLATION RECORDS.— ‘‘(1) PERIODIC REVIEW.—Except as provided in paragraph 

(3), an employer shall ascertain the driving record of each driver it employs— 

‘‘(A) by making an inquiry at least once every 12 

months to the appropriate State agency in which the driver 

held or holds a commercial driver’s license or permit during such time period; 

‘‘(B) by receiving occurrence-based reports of changes in 

the status of a driver’s record from 1 or more driver record 

notification systems that meet minimum standards issued 

by the Secretary; or 

‘‘(C) by a combination of inquiries to States and reports 

from driver record notification systems. 

‘‘(2) RECORD KEEPING.—A copy of the reports received under 

paragraph (1) shall be maintained in the driver’s qualification 

file. 

‘‘(3) EXCEPTIONS TO RECORD REVIEW REQUIREMENT.—Paragraph (1) shall not apply to a driver employed by an employer 

who, in any 7-day period, is employed or used as a driver by 

more than 1 employer— 

‘‘(A) if the employer obtains the driver’s identification 

number, type, and issuing State of the driver’s commercial 

motor vehicle license; or 

‘‘(B) if the information described in subparagraph (A) 

is furnished by another employer and the employer that 

regularly employs the driver meets the other requirements 

under this section. 

‘‘(4) DRIVER RECORD NOTIFICATION SYSTEM DEFINED.—In 

this section, the term ‘driver record notification system’ means 

a system that automatically furnishes an employer with a report, generated by the appropriate agency of a State, on the 

change in the status of an employee’s driver’s license due to a 

conviction for a moving violation, a failure to appear, an accident, driver’s license suspension, driver’s license revocation, or 

any other action taken against the driving privilege.’’. 

(b) STANDARDS FOR DRIVER RECORD NOTIFICATION SYSTEMS.— Not later than 1 year after the date of enactment of this Act, the 

Secretary shall issue minimum standards for driver notification 

systems, including standards for the accuracy, consistency, and 

completeness of the information provided. 

(c) PLAN FOR NATIONAL NOTIFICATION SYSTEM.— 

(1) DEVELOPMENT.—Not later than 2 years after the date of 

enactment of this Act, the Secretary shall develop recommendations and a plan for the development and implementation of a 

national driver record notification system, including— 

(A) an assessment of the merits of achieving a national 

system by expanding the Commercial Driver’s License Information System; and 

(B) an estimate of the fees that an employer will be 

charged to offset the operating costs of the national system. 

(2) SUBMISSION TO CONGRESS.—Not later than 90 days 

after the recommendations and plan are developed under paragraph (1), the Secretary shall submit a report on the recVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00400 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ommendations and plan to the Committee on Commerce, 

Science, and Transportation of the Senate and the Committee 

on Transportation and Infrastructure of the House of Representatives. 

SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING. 

(a) IN GENERAL.—Section 31305 is amended by adding at the 

end the following: 

‘‘(c) STANDARDS FOR TRAINING.—Not later than 1 year after the 

date of enactment of the Commercial Motor Vehicle Safety Enhancement Act of 2012, the Secretary shall issue final regulations establishing minimum entry-level training requirements for an individual operating a commercial motor vehicle— 

‘‘(1) addressing the knowledge and skills that— 

‘‘(A) are necessary for an individual operating a commercial motor vehicle to safely operate a commercial motor 

vehicle; and 

‘‘(B) must be acquired before obtaining a commercial 

driver’s license for the first time or upgrading from one 

class of commercial driver’s license to another class; 

‘‘(2) addressing the specific training needs of a commercial 

motor vehicle operator seeking passenger or hazardous materials endorsements; 

‘‘(3) requiring effective instruction to acquire the knowledge, 

skills, and training referred to in paragraphs (1) and (2), including classroom and behind-the-wheel instruction; 

‘‘(4) requiring certification that an individual operating a 

commercial motor vehicle meets the requirements established by 

the Secretary; and 

‘‘(5) requiring a training provider (including a public or 

private driving school, motor carrier, or owner or operator of a 

commercial motor vehicle) that offers training that results in 

the issuance of a certification to an individual under paragraph 

(4) to demonstrate that the training meets the requirements of 

the regulations, through a process established by the Secretary.’’. 

(b) COMMERCIAL DRIVER’S LICENSE UNIFORM STANDARDS.— 

Section 31308(1) is amended to read as follows: 

‘‘(1) an individual issued a commercial driver’s license— 

‘‘(A) pass written and driving tests for the operation of 

a commercial motor vehicle that comply with the minimum 

standards prescribed by the Secretary under section 

31305(a); and 

‘‘(B) present certification of completion of driver training that meets the requirements established by the Secretary under section 31305(c);’’. 

(c) CONFORMING AMENDMENT.—The section heading for section 

31305 is amended to read as follows: 

‘‘§ 31305. General driver fitness, testing, and training’’. 

(d) CONFORMING AMENDMENT.—The analysis for chapter 313 is 

amended by striking the item relating to section 31305 and inserting the following: 

‘‘31305. General driver fitness, testing, and training.’’. 


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SEC. 32305. COMMERCIAL DRIVER’S LICENSE PROGRAM. 

(a) IN GENERAL.—Section 31309 is amended— 

(1) in subsection (e)(4), by amending subparagraph (A) to 

read as follows: 

‘‘(A) IN GENERAL.—The plan shall specify— 

‘‘(i) a date by which all States shall be operating 

commercial driver’s license information systems that 

are compatible with the modernized information system under this section; and 

‘‘(ii) that States must use the systems to receive 

and submit conviction and disqualification data.’’; and 

(2) in subsection (f), by striking ‘‘use’’ and inserting ‘‘use, 

subject to section 31313(a),’’. 

(b) REQUIREMENTS FOR STATE PARTICIPATION.—Section 31311 

is amended— 

(1) in subsection (a), as amended by section 32203(b) of this 

Act— 

(A) in paragraph (5), by striking ‘‘At least’’ and all that 

follows through ‘‘regulation),’’ and inserting: ‘‘Not later 

than the time period prescribed by the Secretary by regulation,’’; and 

(B) by adding at the end the following: 

‘‘(23) Not later than 1 year after the date of enactment of 

the Commercial Motor Vehicle Safety Enhancement Act of 2012, 

the State shall implement a system and practices for the exclusive electronic exchange of driver history record information on 

the system the Secretary maintains under section 31309, including the posting of convictions, withdrawals, and disqualifications. 

‘‘(24) Before renewing or issuing a commercial driver’s license to an individual, the State shall request information pertaining to the individual from the drug and alcohol clearinghouse maintained under section 31306a.’’; and 

(2) by adding at the end the following: 

‘‘(d) STATE COMMERCIAL DRIVER’S LICENSE PROGRAM PLAN.— 

‘‘(1) IN GENERAL.—A State shall submit a plan to the Secretary for complying with the requirements under this section 

during the period beginning on the date the plan is submitted 

and ending on September 30, 2016. 

‘‘(2) CONTENTS.—A plan submitted by a State under paragraph (1) shall identify— 

‘‘(A) the actions that the State will take to address any 

deficiencies in the State’s commercial driver’s license program, as identified by the Secretary in the most recent 

audit of the program; and 

‘‘(B) other actions that the State will take to comply 

with the requirements under subsection (a). 

‘‘(3) PRIORITY.— 

‘‘(A) IMPLEMENTATION SCHEDULE.—A plan submitted 

by a State under paragraph (1) shall include a schedule for 

the implementation of the actions identified under paragraph (2). In establishing the schedule, the State shall 

prioritize actions to address any deficiencies highlighted by 

the Secretary as critical in the most recent audit of the program. 


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‘‘(B) DEADLINE FOR COMPLIANCE WITH REQUIREMENTS.—A plan submitted by a State under paragraph (1) 

shall include assurances that the State will take the necessary actions to comply with the requirements of subsection (a) not later than September 30, 2015. 

‘‘(4) APPROVAL AND DISAPPROVAL.—The Secretary shall— 

‘‘(A) review each plan submitted under paragraph (1); 

‘‘(B)(i) approve a plan if the Secretary determines that 

the plan meets the requirements under this subsection and 

promotes the goals of this chapter; and 

‘‘(ii) disapprove a plan that the Secretary determines 

does not meet the requirements or does not promote the 

goals. 

‘‘(5) MODIFICATION OF DISAPPROVED PLANS.—If the Secretary disapproves a plan under paragraph (4), the Secretary 

shall— 

‘‘(A) provide a written explanation of the disapproval to 

the State; and 

‘‘(B) allow the State to modify the plan and resubmit 

it for approval. 

‘‘(6) PLAN UPDATES.—The Secretary may require a State to 

review and update a plan, as appropriate. 

‘‘(e) ANNUAL COMPARISON OF STATE LEVELS OF COMPLIANCE.— 

The Secretary shall annually— 

‘‘(1) compare the relative levels of compliance by States with 

the requirements under subsection (a); and 

‘‘(2) make the results of the comparison available to the 

public.’’. 

SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION SYSTEMS. 

Section 31106(c) is amended— 

(1) by striking the heading and inserting ‘‘(1) IN GEN- ERAL.’’; 

(2) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D); and 

(3) by adding at the end the following: 

‘‘(2) ACCESS TO RECORDS.—The Secretary may require a 

State, as a condition of an award of grant money under this 

section, to provide the Secretary access to all State licensing status and driver history records via an electronic information system, subject to section 2721 of title 18.’’. 

SEC. 32307. EMPLOYER RESPONSIBILITIES. 

Section 31304, as amended by section 32303 of this Act, is 

amended in subsection (a)— 

(1) by striking ‘‘knowingly’’; and 

(2) by striking ‘‘in which’’ and inserting ‘‘that the employer 

knows or should reasonably know that’’. 

SEC. 32308. PROGRAM TO ASSIST VETERANS TO ACQUIRE COMMERCIAL DRIVER’S LICENSES. 

(a) STUDY.— 

(1) IN GENERAL.—Not later than 90 days after the date of 

enactment of this Act, the Secretary, in coordination with the 

Secretary of Defense, and in consultation with the States and 

other relevant stakeholders, shall commence a study to assess 


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Federal and State regulatory, economic, and administrative 

challenges faced by members and former members of the Armed 

Forces, who received safety training and operated qualifying 

motor vehicles during their service, in obtaining commercial 

driver’s licenses (as defined in section 31301(3) of title 49, 

United States Code). 

(2) REQUIREMENTS.—The study under this subsection 

shall— 

(A) identify written and behind-the-wheel safety training, qualification standards, knowledge and skills tests, or 

other operating experience members of the Armed Forces 

must meet that satisfy the minimum standards prescribed 

by the Secretary of Transportation for the operation of commercial motor vehicles under section 31305 of title 49, 

United States Code; 

(B) compare the alcohol and controlled substances testing requirements for members of the Armed Forces with 

those required for holders of a commercial driver’s license; 

(C) evaluate the cause of delays in reviewing applications for commercial driver’s licenses of members and 

former members of the Armed Forces; 

(D) identify duplicative application costs; 

(E) identify residency, domicile, training and testing 

requirements, and other safety or health assessments that 

affect or delay the issuance of commercial driver’s licenses 

to members and former members of the Armed Forces; and 

(F) include other factors that the Secretary determines 

to be appropriate to meet the requirements of the study. 

(b) REPORT.— 

(1) IN GENERAL.—Not later than 180 days after the commencement of the study under subsection (a), the Secretary 

shall submit a report to the Committee on Commerce, Science, 

and Transportation of the Senate and the Committee on Financial Services of the House of Representatives that contains the 

findings and recommendations from the study. 

(2) ELEMENTS.—The report under paragraph (1) shall include— 

(A) findings related to the study requirements under 

subsection (a)(2); 

(B) recommendations for the Federal and State legislative, regulatory, and administrative actions necessary to 

address challenges identified in subparagraph (A); and 

(C) a plan to implement the recommendations for 

which the Secretary has authority. 

(c) IMPLEMENTATION.—Not later than 1 year after the date of 

enactment of this Act, the Secretary, in consultation with the Secretary of Defense and in cooperation with the States, shall implement the recommendations identified in subsection (b) and establish 

accelerated licensing procedures to assist veterans to acquire commercial driver’s licenses. 

(d) ACCELERATED LICENSING PROCEDURES.—The procedures established under subsection (a) shall be designed to be applicable to 

any veteran who— 

(1) is attempting to acquire a commercial driver’s license; 

and 


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(2) obtained, during military service, documented driving 

experience that, in the determination of the Secretary, makes 

the use of accelerated licensing procedures appropriate. 

(e) DEFINITIONS.—In this section: 

(1) COMMERCIAL DRIVER’S LICENSE.—The term ‘‘commercial 

driver’s license’’ has the meaning given that term in section 

31301 of title 49, United States Code. 

(2) STATE.—The term ‘‘State’’ has the meaning given that 

term in section 31301 of title 49, United States Code. 

(3) VETERAN.—The term ‘‘veteran’’ has the meaning given 

that term in section 101 of title 38, United States Code. 

Subtitle D—Safe Roads Act of 2012 

SEC. 32401. SHORT TITLE. 

This subtitle may be cited as the ‘‘Safe Roads Act of 2012’’. 

SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE AND ALCOHOL TEST RESULTS OF COMMERCIAL 

MOTOR VEHICLE OPERATORS. 

(a) IN GENERAL.—Chapter 313 is amended— 

(1) in section 31306(a), by inserting ‘‘and section 31306a’’ 

after ‘‘this section’’; and 

(2) by inserting after section 31306 the following: 

‘‘§ 31306a. National clearinghouse for controlled substance 

and alcohol test results of commercial motor vehicle operators 

‘‘(a) ESTABLISHMENT.— 

‘‘(1) IN GENERAL.—Not later than 2 years after the date of 

enactment of the Safe Roads Act of 2012, the Secretary of 

Transportation shall establish, operate, and maintain a national clearinghouse for records relating to alcohol and controlled substances testing of commercial motor vehicle operators. 

‘‘(2) PURPOSES.—The purposes of the clearinghouse shall 

be— 

‘‘(A) to improve compliance with the Department of 

Transportation’s alcohol and controlled substances testing 

program applicable to commercial motor vehicle operators; 

and 

‘‘(B) to enhance the safety of our United States roadways by reducing accident and injuries involving the misuse of alcohol or use of controlled substances by operators 

of commercial motor vehicles. 

‘‘(3) CONTENTS.—The clearinghouse shall function as a repository for records relating to the positive test results and test 

refusals of commercial motor vehicle operators and violations 

by such operators of prohibitions set forth in subpart B of part 

382 of title 49, Code of Federal Regulations (or any subsequent 

corresponding regulations). 

‘‘(4) ELECTRONIC EXCHANGE OF RECORDS.—The Secretary 

shall ensure that records can be electronically submitted to, and 

requested from, the clearinghouse by authorized users. 


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‘‘(5) AUTHORIZED OPERATOR.—The Secretary may authorize 

a qualified private entity to operate and maintain the clearinghouse and to collect fees on behalf of the Secretary under subsection (e). The entity shall operate and maintain the clearinghouse and permit access to driver information and records from 

the clearinghouse in accordance with this section. 

‘‘(b) DESIGN OF CLEARINGHOUSE.— ‘‘(1) USE OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRA- TION RECOMMENDATIONS.—In establishing the clearinghouse, 

the Secretary shall consider— 

‘‘(A) the findings and recommendations contained in 

the Federal Motor Carrier Safety Administration’s March 

2004 report to Congress required under section 226 of the 

Motor Carrier Safety Improvement Act of 1999 (49 U.S.C. 

31306 note); and 

‘‘(B) the findings and recommendations contained in 

the Government Accountability Office’s May 2008 report to 

Congress entitled ‘Motor Carrier Safety: Improvements to 

Drug Testing Programs Could Better Identify Illegal Drug 

Users and Keep Them off the Road.’. 

‘‘(2) DEVELOPMENT OF SECURE PROCESSES.—In establishing 

the clearinghouse, the Secretary shall develop a secure process 

for— 

‘‘(A) administering and managing the clearinghouse in 

compliance with applicable Federal security standards; 

‘‘(B) registering and authenticating authorized users of 

the clearinghouse; 

‘‘(C) registering and authenticating persons required to 

report to the clearinghouse under subsection (g); 

‘‘(D) preventing the unauthorized access of information 

from the clearinghouse; 

‘‘(E) storing and transmitting data; 

‘‘(F) persons required to report to the clearinghouse 

under subsection (g) to timely and accurately submit electronic data to the clearinghouse; 

‘‘(G) generating timely and accurate reports from the 

clearinghouse in response to requests for information by authorized users; and 

‘‘(H) updating an individual’s record upon completion 

of the return-to-duty process described in title 49, Code of 

Federal Regulations. 

‘‘(3) EMPLOYER ALERT OF POSITIVE TEST RESULT.—In establishing the clearinghouse, the Secretary shall develop a secure 

method for electronically notifying an employer of each additional positive test result or other noncompliance— 

‘‘(A) for an employee, that is entered into the clearinghouse during the 7-day period immediately following an 

employer’s inquiry about the employee; and 

‘‘(B) for an employee who is listed as having multiple 

employers. 

‘‘(4) ARCHIVE CAPABILITY.—In establishing the clearinghouse, the Secretary shall develop a process for archiving all 

clearinghouse records for the purposes of auditing and evaluating the timeliness, accuracy, and completeness of data in the 

clearinghouse. 


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‘‘(5) FUTURE NEEDS.— 

‘‘(A) INTEROPERABILITY WITH OTHER DATA SYSTEMS.— 

In establishing the clearinghouse, the Secretary shall consider— 

‘‘(i) the existing data systems containing regulatory 

and safety data for commercial motor vehicle operators; 

‘‘(ii) the efficacy of using or combining clearinghouse data with 1 or more of such systems; and 

‘‘(iii) the potential interoperability of the clearinghouse with such systems. 

‘‘(B) SPECIFIC CONSIDERATIONS.—In carrying out subparagraph (A), the Secretary shall determine— 

‘‘(i) the clearinghouse’s capability for interoperability with— 

‘‘(I) the National Driver Register established 

under section 30302; 

‘‘(II) the Commercial Driver’s License Information System established under section 31309; 

‘‘(III) the Motor Carrier Management Information System for preemployment screening services 

under section 31150; and 

‘‘(IV) other data systems, as appropriate; and 

‘‘(ii) any change to the administration of the current testing program, such as forms, that is necessary 

to collect data for the clearinghouse. 

‘‘(c) STANDARD FORMATS.—The Secretary shall develop standard formats to be used— 

‘‘(1) by an authorized user of the clearinghouse to— 

‘‘(A) request a record from the clearinghouse; and 

‘‘(B) obtain the consent of an individual who is the subject of a request from the clearinghouse, if applicable; and 

‘‘(2) to notify an individual that a positive alcohol or controlled substances test result, refusing to test, and a violation of 

any of the prohibitions under subpart B of part 382 of title 49, 

Code of Federal Regulations (or any subsequent corresponding 

regulations), will be reported to the clearinghouse. 

‘‘(d) PRIVACY.—A release of information from the clearinghouse 

shall— 

‘‘(1) comply with applicable Federal privacy laws, including 

the fair information practices under the Privacy Act of 1974 (5 

U.S.C. 552a); 

‘‘(2) comply with applicable sections of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); and 

‘‘(3) not be made to any person or entity unless expressly 

authorized or required by law. 

‘‘(e) FEES.— 

‘‘(1) AUTHORITY TO COLLECT FEES.—Except as provided 

under paragraph (3), the Secretary may collect a reasonable, 

customary, and nominal fee from an authorized user of the 

clearinghouse for a request for information from the clearinghouse. 

‘‘(2) USE OF FEES.—Fees collected under this subsection 

shall be used for the operation and maintenance of the clearinghouse. 


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‘‘(3) LIMITATION.—The Secretary may not collect a fee from 

an individual requesting information from the clearinghouse 

that pertains to the record of that individual. 

‘‘(f) EMPLOYER REQUIREMENTS.— ‘‘(1) DETERMINATION CONCERNING USE OF CLEARING- HOUSE.—The Secretary shall determine if an employer is authorized to use the clearinghouse to meet the alcohol and controlled substances testing requirements under title 49, Code of 

Federal Regulations. 

‘‘(2) APPLICABILITY OF EXISTING REQUIREMENTS.—Each employer and service agent shall continue to comply with the alcohol and controlled substances testing requirements under title 

49, Code of Federal Regulations. 

‘‘(3) EMPLOYMENT PROHIBITIONS.—After the clearinghouse 

is established under subsection (a), at a date determined to be 

appropriate by the Secretary and published in the Federal Register, an employer shall utilize the clearinghouse to determine 

whether any employment prohibitions exist and shall not hire 

an individual to operate a commercial motor vehicle unless the 

employer determines that the individual, during the preceding 

3-year period— 

‘‘(A) if tested for the use of alcohol and controlled substances, as required under title 49, Code of Federal Regulations— 

‘‘(i) did not test positive for the use of alcohol or 

controlled substances in violation of the regulations; or 

‘‘(ii) tested positive for the use of alcohol or controlled substances and completed the required returnto-duty process under title 49, Code of Federal Regulations; 

‘‘(B)(i) did not refuse to take an alcohol or controlled 

substance test under title 49, Code of Federal Regulations; 

or 

‘‘(ii) refused to take an alcohol or controlled substance 

test and completed the required return-to-duty process 

under title 49, Code of Federal Regulations; and 

‘‘(C) did not violate any other provision of subpart B of 

part 382 of title 49, Code of Federal Regulations (or any 

subsequent corresponding regulations). 

‘‘(4) ANNUAL REVIEW.—After the clearinghouse is established under subsection (a), at a date determined to be appropriate by the Secretary and published in the Federal Register, 

an employer shall request and review a commercial motor vehicle operator’s record from the clearinghouse annually for as 

long as the commercial motor vehicle operator is under the employ of the employer. 

‘‘(g) REPORTING OF RECORDS.— 

‘‘(1) IN GENERAL.—Beginning 30 days after the date that 

the clearinghouse is established under subsection (a), a medical 

review officer, employer, service agent, and other appropriate 

person, as determined by the Secretary, shall promptly submit 

to the Secretary any record generated after the clearinghouse is 

initiated of an individual who— 

‘‘(A) refuses to take an alcohol or controlled substances 

test required under title 49, Code of Federal Regulations; 


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‘‘(B) tests positive for alcohol or a controlled substance 

in violation of the regulations; or 

‘‘(C) violates any other provision of subpart B of part 

382 of title 49, Code of Federal Regulations (or any subsequent corresponding regulations). 

‘‘(2) INCLUSION OF RECORDS IN CLEARINGHOUSE.—The Secretary shall include in the clearinghouse the records of positive 

test results and test refusals received under paragraph (1). 

‘‘(3) MODIFICATIONS AND DELETIONS.—If the Secretary determines that a record contained in the clearinghouse is not accurate, the Secretary shall modify or delete the record, as appropriate. 

‘‘(4) NOTIFICATION.—The Secretary shall expeditiously notify an individual, unless such notification would be duplicative, when— 

‘‘(A) a record relating to the individual is received by 

the clearinghouse; 

‘‘(B) a record in the clearinghouse relating to the individual is modified or deleted, and include in the notification the reason for the modification or deletion; or 

‘‘(C) a record in the clearinghouse relating to the individual is released to an employer and specify the reason for 

the release. 

‘‘(5) DATA QUALITY AND SECURITY STANDARDS FOR REPORT- ING AND RELEASING.—The Secretary may establish additional 

requirements, as appropriate, to ensure that— 

‘‘(A) the submission of records to the clearinghouse is 

timely and accurate; 

‘‘(B) the release of data from the clearinghouse is timely, accurate, and released to the appropriate authorized 

user under this section; and 

‘‘(C) an individual with a record in the clearinghouse 

has a cause of action for any inappropriate use of information included in the clearinghouse. 

‘‘(6) RETENTION OF RECORDS.—The Secretary shall— 

‘‘(A) retain a record submitted to the clearinghouse for 

a 5-year period beginning on the date the record is submitted; 

‘‘(B) remove the record from the clearinghouse at the 

end of the 5-year period, unless the individual fails to meet 

a return-to-duty or follow-up requirement under title 49, 

Code of Federal Regulations; and 

‘‘(C) retain a record after the end of the 5-year period 

in a separate location for archiving and auditing purposes. 

‘‘(h) AUTHORIZED USERS.— 

‘‘(1) EMPLOYERS.—The Secretary shall establish a process 

for an employer, or an employer’s designated agent, to request 

and receive an individual’s record from the clearinghouse. 

‘‘(A) CONSENT.—An employer may not access an individual’s record from the clearinghouse unless the employer— 

‘‘(i) obtains the prior written or electronic consent 

of the individual for access to the record; and 

‘‘(ii) submits proof of the individual’s consent to the 

Secretary. 


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‘‘(B) ACCESS TO RECORDS.—After receiving a request 

from an employer for an individual’s record under subparagraph (A), the Secretary shall grant access to the individual’s record to the employer as expeditiously as practicable. 

‘‘(C) RETENTION OF RECORD REQUESTS.—The Secretary 

shall require an employer to retain for a 3-year period— 

‘‘(i) a record of each request made by the employer 

for records from the clearinghouse; and 

‘‘(ii) the information received pursuant to the request. 

‘‘(D) USE OF RECORDS.—An employer may use an individual’s record received from the clearinghouse only to assess and evaluate whether a prohibition applies with respect to the individual to operate a commercial motor vehicle for the employer. 

‘‘(E) PROTECTION OF PRIVACY OF INDIVIDUALS.—An employer that receives an individual’s record from the clearinghouse under subparagraph (B) shall— 

‘‘(i) protect the privacy of the individual and the 

confidentiality of the record; and 

‘‘(ii) ensure that information contained in the 

record is not divulged to a person or entity that is not 

directly involved in assessing and evaluating whether 

a prohibition applies with respect to the individual to 

operate a commercial motor vehicle for the employer. 

‘‘(2) STATE LICENSING AUTHORITIES.—The Secretary shall 

establish a process for the chief commercial driver’s licensing official of a State to request and receive an individual’s record 

from the clearinghouse if the individual is applying for a commercial driver’s license from the State. 

‘‘(A) CONSENT.—The Secretary may grant access to an 

individual’s record in the clearinghouse under this paragraph without the prior written or electronic consent of the 

individual. An individual who holds a commercial driver’s 

license shall be deemed to consent to such access by obtaining a commercial driver’s license. 

‘‘(B) PROTECTION OF PRIVACY OF INDIVIDUALS.—A chief 

commercial driver’s licensing official of a State that receives an individual’s record from the clearinghouse under 

this paragraph shall— 

‘‘(i) protect the privacy of the individual and the 

confidentiality of the record; and 

‘‘(ii) ensure that the information in the record is 

not divulged to any person that is not directly involved 

in assessing and evaluating the qualifications of the individual to operate a commercial motor vehicle. 

‘‘(i) NATIONAL TRANSPORTATION SAFETY BOARD.—The Secretary 

shall establish a process for the National Transportation Safety 

Board to request and receive an individual’s record from the clearinghouse if the individual is involved in an accident that is under 

investigation by the National Transportation Safety Board. 

‘‘(j) ACCESS TO CLEARINGHOUSE BY INDIVIDUALS.— 


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‘‘(1) IN GENERAL.—The Secretary shall establish a process 

for an individual to request and receive information from the 

clearinghouse— 

‘‘(A) to determine whether the clearinghouse contains a 

record pertaining to the individual; 

‘‘(B) to verify the accuracy of a record; 

‘‘(C) to update an individual’s record, including completing the return-to-duty process described in title 49, Code 

of Federal Regulations; and 

‘‘(D) to determine whether the clearinghouse received 

requests for the individual’s information. 

‘‘(2) DISPUTE PROCEDURE.—The Secretary shall establish a 

procedure, including an appeal process, for an individual to 

dispute and remedy an administrative error in the individual’s 

record. 

‘‘(k) PENALTIES.— 

‘‘(1) IN GENERAL.—An employer, employee, medical review 

officer, or service agent who violates any provision of this section shall be subject to civil penalties under section 521(b)(2)(C) 

and criminal penalties under section 521(b)(6)(B), and any 

other applicable civil and criminal penalties, as determined by 

the Secretary. 

‘‘(2) VIOLATION OF PRIVACY.—The Secretary shall establish 

civil and criminal penalties, consistent with paragraph (1), for 

an authorized user who violates paragraph (1) or (2) of subsection (h). 

‘‘(l) COMPATIBILITY OF STATE AND LOCAL LAWS.— ‘‘(1) PREEMPTION.—Except as provided under paragraph 

(2), any law, regulation, order, or other requirement of a State, 

political subdivision of a State, or Indian tribe related to a commercial driver’s license holder subject to alcohol or controlled 

substance testing under title 49, Code of Federal Regulations, 

that is inconsistent with this section or a regulation issued pursuant to this section is preempted. 

‘‘(2) APPLICABILITY.—The preemption under paragraph (1) 

shall include— 

‘‘(A) the reporting of valid positive results from alcohol 

screening tests and drug tests; 

‘‘(B) the refusal to provide a specimen for an alcohol 

screening test or drug test; and 

‘‘(C) other violations of subpart B of part 382 of title 

49, Code of Federal Regulations (or any subsequent corresponding regulations). 

‘‘(3) EXCEPTION.—A law, regulation, order, or other requirement of a State, political subdivision of a State, or Indian tribe 

shall not be preempted under this subsection to the extent it relates to an action taken with respect to a commercial motor vehicle operator’s commercial driver’s license or driving record as 

a result of the driver’s— 

‘‘(A) verified positive alcohol or drug test result; 

‘‘(B) refusal to provide a specimen for the test; or 

‘‘(C) other violations of subpart B of part 382 of title 

49, Code of Federal Regulations (or any subsequent corresponding regulations). 

‘‘(m) DEFINITIONS.—In this section— 


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‘‘(1) AUTHORIZED USER.—The term ‘authorized user’ means 

an employer, State licensing authority, or other person granted 

access to the clearinghouse under subsection (h). 

‘‘(2) CHIEF COMMERCIAL DRIVER’S LICENSING OFFICIAL.— The term ‘chief commercial driver’s licensing official’ means the 

official in a State who is authorized to— 

‘‘(A) maintain a record about commercial driver’s licenses issued by the State; and 

‘‘(B) take action on commercial driver’s licenses issued 

by the State. 

‘‘(3) CLEARINGHOUSE.—The term ‘clearinghouse’ means the 

clearinghouse established under subsection (a). 

‘‘(4) COMMERCIAL MOTOR VEHICLE OPERATOR.—The term 

‘commercial motor vehicle operator’ means an individual who— 

‘‘(A) possesses a valid commercial driver’s license 

issued in accordance with section 31308; and 

‘‘(B) is subject to controlled substances and alcohol testing under title 49, Code of Federal Regulations. 

‘‘(5) EMPLOYER.—The term ‘employer’ means a person or entity employing, or seeking to employ, 1 or more employees (including an individual who is self-employed) to be commercial 

motor vehicle operators. 

‘‘(6) MEDICAL REVIEW OFFICER.—The term ‘medical review 

officer’ means a licensed physician who is responsible for— 

‘‘(A) receiving and reviewing a laboratory result generated under the testing program; 

‘‘(B) evaluating a medical explanation for a controlled 

substances test under title 49, Code of Federal Regulations; 

and 

‘‘(C) interpreting the results of a controlled substances 

test. 

‘‘(7) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Transportation. 

‘‘(8) SERVICE AGENT.—The term ‘service agent’ means a person or entity, other than an employee of the employer, who provides services to employers or employees under the testing program. 

‘‘(9) TESTING PROGRAM.—The term ‘testing program’ means 

the alcohol and controlled substances testing program required 

under title 49, Code of Federal Regulations.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 313 is 

amended by inserting after the item relating to section 31306 the 

following: 

‘‘31306a. National clearinghouse for positive controlled substance and alcohol test results of commercial motor vehicle operators.’’. 

Subtitle E—Enforcement 

SEC. 32501. INSPECTION DEMAND AND DISPLAY OF CREDENTIALS. 

(a) SAFETY INVESTIGATIONS.—Section 504(c) is amended— 

(1) by inserting ‘‘, or an employee of the recipient of a grant 

issued under section 31102 of this title’’ after ‘‘a contractor’’; 

and 

(2) by inserting ‘‘, in person or in writing’’ after ‘‘proper credentials’’. 


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(b) CIVIL PENALTY.—Section 521(b)(2)(E) is amended— 

(1) by redesignating subparagraph (E) as subparagraph 

(E)(i); and 

(2) by adding at the end the following: 

‘‘(ii) PLACE OUT OF SERVICE.—The Secretary may 

by regulation adopt procedures for placing out of service the commercial motor vehicle of a foreign-domiciled 

motor carrier that fails to promptly allow the Secretary 

to inspect and copy a record or inspect equipment, 

land, buildings, or other property.’’. 

(c) HAZARDOUS MATERIALS INVESTIGATIONS.—Section 5121(c)(2) 

is amended by inserting ‘‘, in person or in writing,’’ after ‘‘proper 

credentials’’. 

(d) COMMERCIAL INVESTIGATIONS.—Section 14122(b) is amended by inserting ‘‘, in person or in writing’’ after ‘‘proper credentials’’. 

SEC. 32502. OUT OF SERVICE PENALTY FOR DENIAL OF ACCESS TO 

RECORDS. 

Section 521(b)(2)(E) is amended— 

(1) by inserting after ‘‘$10,000.’’ the following: ‘‘In the case 

of a motor carrier, the Secretary may also place the violator’s 

motor carrier operations out of service.’’; and 

(2) by striking ‘‘such penalty’’ after ‘‘It shall be a defense to’’ 

and inserting ‘‘a penalty’’. 

SEC. 32503. PENALTIES FOR VIOLATION OF OPERATION OUT OF SERVICE ORDERS. 

Section 521(b)(2) is amended by adding at the end the following: 

‘‘(F) PENALTY FOR VIOLATIONS RELATING TO OUT OF

SERVICE ORDERS.—A motor carrier or employer (as defined 

in section 31132) that operates a commercial motor vehicle 

in commerce in violation of a prohibition on transportation 

under section 31144(c) of this title or an imminent hazard 

out of service order issued under subsection (b)(5) of this 

section or section 5121(d) of this title shall be liable for a 

civil penalty not to exceed $25,000.’’. 

SEC. 32504. IMPOUNDMENT AND IMMOBILIZATION OF COMMERCIAL 

MOTOR VEHICLES FOR IMMINENT HAZARD. 

Section 521(b) is amended by adding at the end the following: 

‘‘(15) IMPOUNDMENT OF COMMERCIAL MOTOR VEHICLES.— 

‘‘(A) ENFORCEMENT OF IMMINENT HAZARD OUT-OF-SERVICE ORDERS.— 

‘‘(i) The Secretary, or an authorized State official 

carrying out motor carrier safety enforcement activities 

under section 31102, may enforce an imminent hazard 

out-of-service order issued under chapters 5, 51, 131 

through 149, 311, 313, or 315 of this title, or a regulation promulgated thereunder, by towing and impounding a commercial motor vehicle until the order is rescinded. 

‘‘(ii) Enforcement shall not unreasonably interfere 

with the ability of a shipper, carrier, broker, or other 

party to arrange for the alternative transportation of 

any cargo or passenger being transported at the time 

the commercial motor vehicle is immobilized. In the 


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case of a commercial motor vehicle transporting passengers, the Secretary or authorized State official shall 

provide reasonable, temporary, and secure shelter and 

accommodations for passengers in transit. 

‘‘(iii) The Secretary’s designee or an authorized 

State official carrying out motor carrier safety enforcement activities under section 31102, shall immediately 

notify the owner of a commercial motor vehicle of the 

impoundment and the opportunity for review of the impoundment. A review shall be provided in accordance 

with section 554 of title 5, except that the review shall 

occur not later than 10 days after the impoundment. 

‘‘(B) ISSUANCE OF REGULATIONS.—The Secretary shall 

promulgate regulations on the use of impoundment or immobilization of commercial motor vehicles as a means of 

enforcing additional out-of-service orders issued under 

chapters 5, 51, 131 through 149, 311, 313, or 315 of this 

title, or a regulation promulgated thereunder. Regulations 

promulgated under this subparagraph shall include consideration of public safety, the protection of passengers and 

cargo, inconvenience to passengers, and the security of the 

commercial motor vehicle. 

‘‘(C) DEFINITION.—In this paragraph, the term ‘impoundment’ or ’impounding’ means the seizing and taking 

into custody of a commercial motor vehicle or the immobilizing of a commercial motor vehicle through the attachment of a locking device or other mechanical or electronic 

means.’’. 

SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS. 

(a) PENALTIES.—Section 524 is amended— 

(1) by striking ‘‘knowingly and willfully’’; 

(2) by inserting after ‘‘this chapter’’ the following: ‘‘, chapter 

51, subchapter III of chapter 311 (except sections 31138 and 

31139) or section 31302, 31303, 31304, 31305(b), 31310(g)(1)(A), 

or 31502 of this title, or a regulation issued under any of those 

provisions,’’; 

(3) by striking ‘‘$200 but not more than $500’’ and inserting 

‘‘$2,000 but not more than $5,000’’; and 

(4) by striking ‘‘$250 but not more than $2,000’’ and inserting ‘‘$2,500 but not more than $7,500’’. 

(b) EVASION OF REGULATION.—Section 14906 is amended— 

(1) by striking ‘‘$200’’ and inserting ‘‘at least $2,000’’; 

(2) by striking ‘‘$250’’ and inserting ‘‘$5,000’’; and 

(3) by inserting after ‘‘a subsequent violation’’ the following: 

‘‘, and may be subject to criminal penalties’’. 

SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE 

SAFETY REGULATION AND OPERATORS. 

Section 521(b)(2)(D) is amended by striking ‘‘ability to pay,’’. 

SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD. 

Section 31310(f) is amended— 

(1) in paragraph (1) by inserting ‘‘section 521 or’’ before 

‘‘section 5102’’; and 

(2) in paragraph (2) by inserting ‘‘section 521 or’’ before 

‘‘section 5102’’. 


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SEC. 32508. DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT 

AGENCIES. 

Section 31106(e) is amended— 

(1) by redesignating subsection (e) as subsection (e)(1); and 

(2) by inserting at the end the following: 

‘‘(2) IN GENERAL.—Notwithstanding any prohibition on disclosure of information in section 31105(h) or 31143(b) of this 

title or section 552a of title 5, the Secretary may disclose information maintained by the Secretary pursuant to chapters 51, 

135, 311, or 313 of this title to appropriate personnel of a State 

agency or instrumentality authorized to carry out State commercial motor vehicle safety activities and commercial driver’s 

license laws, or appropriate personnel of a local law enforcement agency, in accordance with standards, conditions, and 

procedures as determined by the Secretary. Disclosure under 

this section shall not operate as a waiver by the Secretary of 

any applicable privilege against disclosure under common law 

or as a basis for compelling disclosure under section 552 of title 

5.’’. 

SEC. 32509. GRADE CROSSING SAFETY REGULATIONS. 

Section 112(2) of the Hazardous Materials Transportation Authorization Act of 1994 (Public Law 103–311) is amended by striking ‘‘315 of such title (relating to motor carrier safety)’’ and inserting ‘‘311 of such title (relating to commercial motor vehicle safety)’’. 

Subtitle F—Compliance, Safety, 

Accountability 

SEC. 32601. MOTOR CARRIER SAFETY ASSISTANCE PROGRAM. 

(a) IN GENERAL.—Section 31102(b) is amended— 

(1) by amending the heading to read as follows: 

‘‘(b) MOTOR CARRIER SAFETY ASSISTANCE PROGRAM.—’’; 

(2) by redesignating paragraphs (1) through (3) as (2) 

through (4), respectively; 

(3) by inserting before paragraph (2), as redesignated, the 

following: 

‘‘(1) PROGRAM GOAL.—The goal of the Motor Carrier Safety 

Assistance Program is to ensure that the Secretary, States, local 

government agencies, and other political jurisdictions work in 

partnership to establish programs to improve motor carrier, 

commercial motor vehicle, and driver safety to support a safe 

and efficient surface transportation system by— 

‘‘(A) making targeted investments to promote safe commercial motor vehicle transportation, including transportation of passengers and hazardous materials; 

‘‘(B) investing in activities likely to generate maximum 

reductions in the number and severity of commercial motor 

vehicle crashes and fatalities resulting from such crashes; 

‘‘(C) adopting and enforcing effective motor carrier, 

commercial motor vehicle, and driver safety regulations 

and practices consistent with Federal requirements; and 

‘‘(D) assessing and improving statewide performance by 

setting program goals and meeting performance standards, 

measures, and benchmarks.’’; 


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(4) in paragraph (2), as redesignated— 

(A) by striking ‘‘make a declaration of’’ in subparagraph (I) and inserting ‘‘demonstrate’’; 

(B) by amending subparagraph (M) to read as follows: 

‘‘(M) ensures participation in appropriate Federal 

Motor Carrier Safety Administration systems and other information systems by all appropriate jurisdictions receiving 

Motor Carrier Safety Assistance Program funding;’’; 

(C) in subparagraph (Q), by inserting ‘‘and dedicated 

sufficient resources to’’ between ‘‘established’’ and ‘‘a program’’; 

(D) in subparagraph (W), by striking ‘‘and’’ after the 

semicolon; 

(E) in subparagraph (X), by striking the period and inserting ‘‘; and’’; and 

(F) by adding after subparagraph (X) the following: 

‘‘(Y) ensures that the State will transmit to its roadside 

inspectors the notice of each Federal exemption granted 

pursuant to section 31315(b) and provided to the State by 

the Secretary, including the name of the person granted the 

exemption and any terms and conditions that apply to the 

exemption.’’; and 

(5) by amending paragraph (4), as redesignated, to read as 

follows: 

‘‘(4) MAINTENANCE OF EFFORT.— 

‘‘(A) IN GENERAL.—A plan submitted by a State under 

paragraph (2) shall provide that the total expenditure of 

amounts of the lead State agency responsible for implementing the plan will be maintained at a level at least 

equal to the average level of that expenditure for fiscal 

years 2004 and 2005. 

‘‘(B) AVERAGE LEVEL OF STATE EXPENDITURES.—In estimating the average level of State expenditure under subparagraph (A), the Secretary— 

‘‘(i) may allow the State to exclude State expenditures for Government-sponsored demonstration or pilot 

programs; and 

‘‘(ii) shall require the State to exclude State matching amounts used to receive Government financing 

under this subsection. 

‘‘(C) WAIVER.—Upon the request of a State, the Secretary may waive or modify the requirements of this paragraph for 1 fiscal year, if the Secretary determines that a 

waiver is equitable due to exceptional or uncontrollable circumstances, such as a natural disaster or a serious decline 

in the financial resources of the State motor carrier safety 

assistance program agency.’’. 

SEC. 32602. PERFORMANCE AND REGISTRATION INFORMATION SYSTEMS MANAGEMENT PROGRAM. 

Section 31106(b) is amended by amending paragraph (3)(C) to 

read as follows: 

‘‘(C) establish and implement a process— 

‘‘(i) to cancel the motor vehicle registration and 

seize the registration plates of a vehicle when an employer is found liable under section 31310(i)(2)(C) for 


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knowingly allowing or requiring an employee to operate such a commercial motor vehicle in violation of an 

out-of-service order; and 

‘‘(ii) to reinstate the vehicle registration or return 

the registration plates of the commercial motor vehicle, 

subject to sanctions under clause (i), if the Secretary 

permits such carrier to resume operations after the date 

of issuance of such order.’’. 

SEC. 32603. AUTHORIZATION OF APPROPRIATIONS. 

(a) MOTOR CARRIER SAFETY GRANTS.—Section 31104(a) is 

amended— 

(1) by striking ‘‘and’’ at the end of paragraph (7); 

(2) by striking paragraph (8); and 

(3) by inserting after paragraph (7) the following: 

‘‘(8) $215,000,000 for fiscal year 2013; and 

‘‘(9) $218,000,000 for fiscal year 2014.’’. 

(b) ADMINISTRATIVE EXPENSES.—Section 31104(i)(1) is amended— 

(1) by striking ‘‘and’’ at the end of subparagraph (G); and 

(2) by striking subparagraph (H); and 

(3) by inserting after subparagraph (G) the following: 

‘‘(H) $251,000,000 for fiscal year 2013; and 

‘‘(I) $259,000,000 for fiscal year 2014.’’. 

(c) GRANT PROGRAMS.—Section 4101(c) of SAFETEA-LU (119 

Stat. 1715) is amended to read as follows: 

‘‘(c) GRANT PROGRAMS.—There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit 

Account) the following sums for the following Federal Motor Carrier 

Safety Administration programs: 

‘‘(1) COMMERCIAL DRIVER’S LICENSE PROGRAM IMPROVEMENT GRANTS.—For commercial driver’s license program improvement grants under section 31313 of title 49, United States 

Code $30,000,000 for each of fiscal years 2013 and 2014. 

‘‘(2) BORDER ENFORCEMENT GRANTS.—For border enforcement grants under section 31107 of such title $32,000,000 for 

each of fiscal years 2013 and 2014. 

‘‘(3) PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT GRANT PROGRAM.—For the performance and 

registration information system management grant program 

under section 31109 of such title $5,000,000 for each of fiscal 

years 2013 and 2014. 

‘‘(4) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS DEPLOYMENT.—For carrying out the commercial vehicle 

information systems and networks deployment program under 

section 4126 of this Act, $25,000,000 for each of fiscal years 

2013 and 2014. 

‘‘(5) SAFETY DATA IMPROVEMENT GRANTS.—For safety data 

improvement grants under section 4128 of this Act, $3,000,000 

for each of fiscal years 2013 and 2014.’’. 

(d) HIGH-PRIORITY ACTIVITIES.—Section 31104(k)(2) is amended 

by striking ‘‘2011 and $11,250,000 for the period beginning on October 1, 2011, and ending on June 30, 2012,’’ and inserting ‘‘2014’’. 

(e) NEW ENTRANT AUDITS.—Section 31144(g)(5)(B) is amended 

to read as follows: 


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‘‘(B) SET ASIDE.—The Secretary shall set aside from 

amounts made available by section 31104(a) up to 

$32,000,000 per fiscal year for audits of new entrant motor 

carriers conducted pursuant to this paragraph.’’. 

(f) OUTREACH AND EDUCATION.—Section 4127(e) of SAFETEALU (119 Stat. 1741) is amended to read as follows: 

‘‘(e) FUNDING.—From amounts made available under section 

31104(i) of title 49, United States Code, the Secretary shall make 

available $4,000,000 to the Federal Motor Carrier Safety Administration for each of fiscal years 2013 and 2014 to carry out this section (other than subsection (f)).’’. 

(g) GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERA- TORS.—Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301 note) is amended by striking ‘‘2011 and $750,000 for the period beginning 

on October 1, 2011, and ending on June 30, 2012,’’ and inserting 

‘‘2014’’. 

(h) BORDER ENFORCEMENT GRANTS.—Section 31107 is amended— 

(1) by striking subsection (b); and 

(2) redesignating subsections (c) and (d) as subsections (b) 

and (c), respectively. 

(i) ADMINISTRATION OF GRANT PROGRAMS.—The Secretary is 

authorized to identify and implement processes to reduce the administrative burden on the States and the Department of Transportation concerning the application and management of the grant programs authorized under chapter 311 and chapter 313 of title 49, 

United States Code. 

SEC. 32604. GRANTS FOR COMMERCIAL DRIVER’S LICENSE PROGRAM 

IMPLEMENTATION. 

(a) GRANTS FOR COMMERCIAL DRIVER’S LICENSE PROGRAM IM- PLEMENTATION.—Section 31313(a) is amended to read as follows: 

‘‘(a) COMMERCIAL DRIVER’S LICENSE PROGRAM IMPROVEMENT

GRANTS.— 

‘‘(1) PROGRAM GOAL.—The Secretary of Transportation may 

make a grant to a State in a fiscal year— 

‘‘(A) to comply with the requirements of section 31311; 

‘‘(B) in the case of a State that is making a good faith 

effort toward substantial compliance with the requirements 

of this section and section 31311, to improve its implementation of its commercial driver’s license program, including 

expenses— 

‘‘(i) for computer hardware and software; 

‘‘(ii) for publications, testing, personnel, training, 

and quality control; 

‘‘(iii) for commercial driver’s license program coordinators; 

‘‘(iv) to implement or maintain a system to notify 

an employer of an operator of a commercial motor vehicle of the suspension or revocation of the operator’s 

commercial driver’s license consistent with the standards developed under section 32303(b) of the Commercial Motor Vehicle Safety Enhancement Act of 2012. 

‘‘(2) PROHIBITIONS.—A State may not use grant funds 

under this subsection to rent, lease, or buy land or buildings.’’. 

(b) CONFORMING AMENDMENT.— 


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(1) The heading for section 31313 is amended by striking 

‘‘improvements’’ and inserting ‘‘implementation’’. 

(2) The analysis of chapter 313 is amended by striking the 

item relating to section 31313 and inserting the following: 

‘‘31313. Grants for commercial driver’s license program implementation.’’. 

SEC. 32605. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS. 

Not later than 6 months after the date of enactment of this Act, 

the Secretary shall submit a report to the Committee on Commerce, 

Science, and Transportation of the Senate and the Committee on 

Transportation and Infrastructure of the House of Representatives 

that includes— 

(1) established time frames and milestones for resuming the 

Commercial Vehicle Information Systems and Networks Program; and 

(2) a strategic workforce plan for its grants management office to ensure that it has determined the skills and competencies 

that are critical to achieving its mission goals. 

Subtitle G—Motorcoach Enhanced Safety 

Act of 2012 

SEC. 32701. SHORT TITLE. 

This subtitle may be cited as the ‘‘Motorcoach Enhanced Safety 

Act of 2012’’. 

SEC. 32702. DEFINITIONS. 

In this subtitle: 

(1) ADVANCED GLAZING.—The term ‘‘advanced glazing’’ 

means glazing installed in a portal on the side or the roof of 

a motorcoach that is designed to be highly resistant to partial 

or complete occupant ejection in all types of motor vehicle crashes. 

(2) BUS.—The term ‘‘bus’’ has the meaning given the term 

in section 571.3(b) of title 49, Code of Federal Regulations (as 

in effect on the day before the date of enactment of this Act). 

(3) COMMERCIAL MOTOR VEHICLE.—Except as otherwise 

specified, the term ‘‘commercial motor vehicle’’ has the meaning 

given the term in section 31132(1) of title 49, United States 

Code. 

(4) DIRECT TIRE PRESSURE MONITORING SYSTEM.—The term 

‘‘direct tire pressure monitoring system’’ means a tire pressure 

monitoring system that is capable of directly detecting when the 

air pressure level in any tire is significantly under-inflated and 

providing the driver a low tire pressure warning as to which 

specific tire is significantly under-inflated. 

(5) MOTOR CARRIER.—The term ‘‘motor carrier’’ means— 

(A) a motor carrier (as defined in section 13102(14) of 

title 49, United States Code); or 

(B) a motor private carrier (as defined in section 

13102(15) of that title). 

(6) MOTORCOACH.—The term ‘‘motorcoach’’ has the meaning 

given the term ‘‘over-the-road bus’’ in section 3038(a)(3) of the 


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Transportation Equity Act for the 21st Century (49 U.S.C. 5310 

note), but does not include— 

(A) a bus used in public transportation provided by, or 

on behalf of, a public transportation agency; or 

(B) a school bus, including a multifunction school activity bus. 

(7) MOTORCOACH SERVICES.—The term ‘‘motorcoach services’’ means passenger transportation by motorcoach for compensation. 

(8) MULTIFUNCTION SCHOOL ACTIVITY BUS.—The term 

‘‘multifunction school activity bus’’ has the meaning given the 

term in section 571.3(b) of title 49, Code of Federal Regulations 

(as in effect on the day before the date of enactment of this Act). 

(9) PORTAL.—The term ‘‘portal’’ means any opening on the 

front, side, rear, or roof of a motorcoach that could, in the event 

of a crash involving the motorcoach, permit the partial or complete ejection of any occupant from the motorcoach, including a 

young child. 

(10) PROVIDER OF MOTORCOACH SERVICES.—The term ‘‘provider of motorcoach services’’ means a motor carrier that provides passenger transportation services with a motorcoach, including per-trip compensation and contracted or chartered compensation. 

(11) PUBLIC TRANSPORTATION.—The term ‘‘public transportation’’ has the meaning given the term in section 5302 of title 

49, United States Code. 

(12) SAFETY BELT.—The term ‘‘safety belt’’ has the meaning 

given the term in section 153(i)(4)(B) of title 23, United States 

Code. 

(13) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Transportation. 

SEC. 32703. REGULATIONS FOR IMPROVED OCCUPANT PROTECTION, 

PASSENGER EVACUATION, AND CRASH AVOIDANCE. 

(a) REGULATIONS REQUIRED WITHIN 1 YEAR.—Not later than 1 

year after the date of enactment of this Act, the Secretary shall prescribe regulations requiring safety belts to be installed in 

motorcoaches at each designated seating position. 

(b) REGULATIONS REQUIRED WITHIN 2 YEARS.—Not later than 

2 years after the date of enactment of this Act, the Secretary shall 

prescribe regulations that address the following commercial motor 

vehicle standards, if the Secretary determines that such standards 

meet the requirements and considerations set forth in subsections 

(a) and (b) of section 30111 of title 49, United States Code: 

(1) ROOF STRENGTH AND CRUSH RESISTANCE.—The Secretary shall establish improved roof and roof support standards 

for motorcoaches that substantially improve the resistance of 

motorcoach roofs to deformation and intrusion to prevent serious occupant injury in rollover crashes involving motorcoaches. 

(2) ANTI-EJECTION SAFETY COUNTERMEASURES.—The Secretary shall consider requiring advanced glazing standards for 

each motorcoach portal and shall consider other portal improvements to prevent partial and complete ejection of motorcoach passengers, including children. In prescribing such 

standards, the Secretary shall consider the impact of such 


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standards on the use of motorcoach portals as a means of emergency egress. 

(3) ROLLOVER CRASH AVOIDANCE.—The Secretary shall consider requiring motorcoaches to be equipped with stability enhancing technology, such as electronic stability control and 

torque vectoring, to reduce the number and frequency of rollover 

crashes among motorcoaches. 

(c) COMMERCIAL MOTOR VEHICLE TIRE PRESSURE MONITORING

SYSTEMS.—Not later than 3 years after the date of enactment of this 

Act, the Secretary shall prescribe the following commercial vehicle 

regulation: 

(1) IN GENERAL.—The Secretary shall consider requiring 

motorcoaches to be equipped with direct tire pressure monitoring systems that warn the operator of a commercial motor 

vehicle when any tire exhibits a level of air pressure that is 

below a specified level of air pressure established by the Secretary, if the Secretary determines that such standards meet the 

requirements and considerations set forth in subsections (a) and 

(b) of section 30111 of title 49, United States Code. 

(2) PERFORMANCE REQUIREMENTS.—In any standard adopted under paragraph (1), the Secretary shall include performance requirements to meet the objectives identified in paragraph 

(1) of this subsection. 

(d) TIRE PERFORMANCE STANDARD.—Not later than 3 years 

after the date of enactment of this Act, the Secretary shall consider— 

(1) issuing a rule to upgrade performance standards for 

tires used on motorcoaches, including an enhanced endurance 

test and a new high-speed performance test; or 

(2) if the Secretary determines that a standard does not 

meet the requirements and considerations set forth in subsections (a) and (b) of section 30111 of title 49, United States 

Code, submit a report that describes the reasons for not prescribing such a standard to— 

(A) the Committee on Commerce, Science, and Transportation of the Senate; 

(B) the Committee on Transportation and Infrastructure of the House of Representatives; and 

(C) the Committee on Energy and Commerce of the 

House of Representatives. 

(e) APPLICATION OF REGULATIONS.— 

(1) NEW MOTORCOACHES.—Any regulation prescribed in accordance with subsection (a), (b), (c), or (d) shall— 

(A) apply to all motorcoaches manufactured more than 

3 years after the date on which the regulation is published 

as a final rule; 

(B) take into account the impact to seating capacity of 

changes to size and weight of motorcoaches and the ability 

to comply with State and Federal size and weight requirements; and 

(C) be based on the best available science. 

(2) RETROFIT ASSESSMENT FOR EXISTING MOTORCOACHES.— (A) IN GENERAL.—The Secretary may assess the feasibility, benefits, and costs with respect to the application of 

any requirement established under subsection (a) or (b)(2) 


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to motorcoaches manufactured before the date on which the 

requirement applies to new motorcoaches under paragraph 

(1). 

(B) REPORT.—The Secretary shall submit a report on 

the assessment to the Committee on Commerce, Science, 

and Transportation of the Senate and the Committee on 

Transportation and Infrastructure and the Committee on 

Energy and Commerce of the House of Representatives not 

later than 2 years after the date of enactment of this Act. 

SEC. 32704. FIRE PREVENTION AND MITIGATION. 

(a) RESEARCH AND TESTING.—The Secretary shall conduct research and testing to determine the most prevalent causes of motorcoach fires and the best methods to prevent such fires and to mitigate the effect of such fires, both inside and outside the motorcoach. 

Such research and testing shall consider flammability of exterior 

components, smoke suppression, prevention of and resistance to 

wheel well fires, automatic fire suppression, passenger evacuation, 

causation and prevention of motorcoach fires, and improved fire extinguishers. 

(b) STANDARDS.—Not later than 3 years after the date of enactment of this Act, the Secretary may issue fire prevention and mitigation standards for motorcoaches, based on the results of the Secretary’s research and testing, taking into account highway size and 

weight restrictions applicable to motorcoaches, if the Secretary determines that such standards meet the requirements and considerations set forth in subsections (a) and (b) of section 30111 of title 

49, United States Code. 

SEC. 32705. OCCUPANT PROTECTION, COLLISION AVOIDANCE, FIRE 

CAUSATION, AND FIRE EXTINGUISHER RESEARCH AND 

TESTING. 

(a) SAFETY RESEARCH INITIATIVES.—Not later than 3 years 

after the date of enactment of this Act, the Secretary shall complete 

the following research and testing: 

(1) INTERIOR IMPACT PROTECTION.—The Secretary shall research and test enhanced occupant impact protection technologies for motorcoach interiors to reduce serious injuries for 

all passengers of motorcoaches. 

(2) COMPARTMENTALIZATION SAFETY COUNTERMEASURES.— 

The Secretary shall research and test enhanced 

compartmentalization safety countermeasures for motorcoaches, 

including enhanced seating designs. 

(3) COLLISION AVOIDANCE SYSTEMS.—The Secretary shall 

research and test forward and lateral crash warning systems 

applications for motorcoaches. 

(b) RULEMAKING.—Not later than 2 years after the completion 

of each research and testing initiative required under subsection (a), 

the Secretary shall issue final motor vehicle safety standards if the 

Secretary determines that such standards meet the requirements 

and considerations set forth in subsections (a) and (b) of section 

30111 of title 49, United States Code. 

SEC. 32706. CONCURRENCE OF RESEARCH AND RULEMAKING. 

(a) REQUIREMENTS.—To the extent feasible, the Secretary shall 

ensure that research programs are carried out concurrently, and in 


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a manner that concurrently assesses results, potential countermeasures, costs, and benefits. 

(b) AUTHORITY TO COMBINE RULEMAKINGS.—When considering 

each of the rulemaking provisions, the Secretary may initiate a single rulemaking proceeding encompassing all aspects or may combine the rulemakings as the Secretary deems appropriate. 

(c) CONSIDERATIONS.—If the Secretary undertakes separate 

rulemaking proceedings, the Secretary shall— 

(1) consider whether each added aspect of rulemaking may 

contribute to addressing the safety need determined to require 

rulemaking; 

(2) consider the benefits obtained through the safety belts 

rulemaking in section 32703(a); and 

(3) avoid duplicative benefits, costs, and countermeasures. 

SEC. 32707. IMPROVED OVERSIGHT OF MOTORCOACH SERVICE PROVIDERS. 

(a) SAFETY REVIEWS.—Section 31144, as amended by section 

32202 of this Act, is amended by adding at the end the following: 

‘‘(i) PERIODIC SAFETY REVIEWS OF OWNERS AND OPERATORS OF

INTERSTATE FOR-HIRE COMMERCIAL MOTOR VEHICLES DESIGNED OR

USED TO TRANSPORT PASSENGERS.— 

‘‘(1) SAFETY REVIEW.— 

‘‘(A) IN GENERAL.—The Secretary shall— 

‘‘(i) determine the safety fitness of each motor carrier of passengers who the Secretary registers under 

section 13902 or 31134 through a simple and understandable rating system that allows passengers to compare the safety performance of each such motor carrier; 

and 

‘‘(ii) assign a safety fitness rating to each such 

motor carrier. 

‘‘(B) APPLICABILITY.—Subparagraph (A) shall apply— 

‘‘(i) to any provider of motorcoach services registered with the Administration after the date of enactment of the Motorcoach Enhanced Safety Act of 2012 

beginning not later than 2 years after the date of such 

registration; and 

‘‘(ii) to any provider of motorcoach services registered with the Administration on or before the date of 

enactment of that Act beginning not later than 3 years 

after the date of enactment of that Act. 

‘‘(2) PERIODIC REVIEW.—The Secretary shall establish, by 

regulation, a process for monitoring the safety performance of 

each motor carrier of passengers on a regular basis following 

the assignment of a safety fitness rating, including progressive 

intervention to correct unsafe practices. 

‘‘(3) ENFORCEMENT STRIKE FORCES.—In addition to the enhanced monitoring and enforcement actions required under 

paragraph (2), the Secretary may organize special enforcement 

strike forces targeting motor carriers of passengers. 

‘‘(4) PERIODIC UPDATE OF SAFETY FITNESS RATING.—In conducting the safety reviews required under this subsection, the 

Secretary shall— 


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‘‘(A) reassess the safety fitness rating of each motor carrier of passengers not less frequently than once every 3 

years; and 

‘‘(B) annually assess the safety fitness of certain motor 

carriers of passengers that serve primarily urban areas 

with high passenger loads.’’. 

(b) DISCLOSURE OF SAFETY PERFORMANCE RATINGS OF MOTOR- COACH SERVICES AND OPERATIONS.— (1) DEFINITIONS.—In this subsection: 

(A) MOTORCOACH.— (i) IN GENERAL.—Except as provided in clause (ii), 

the term ‘‘motorcoach’’ has the meaning given the term 

‘‘over-the-road bus’’ in section 3038(a)(3) of the Transportation Equity Act for the 21st Century (49 U.S.C. 

5310 note). 

(ii) EXCLUSIONS.—The term ‘‘motorcoach’’ does not 

include— 

(I) a bus used in public transportation that is 

provided by a State or local government; or 

(II) a school bus (as defined in section 

30125(a)(1) of title 49, United States Code), including a multifunction school activity bus. 

(B) MOTORCOACH SERVICES AND OPERATIONS.—The 

term ‘‘motorcoach services and operations’’ means passenger 

transportation by a motorcoach for compensation. 

(2) REQUIREMENTS FOR THE DISCLOSURE OF SAFETY PER- FORMANCE RATINGS OF MOTORCOACH SERVICES AND OPER- ATIONS.— 

(A) IN GENERAL.—Not later than 1 year after the date 

of enactment of this Act, the Secretary shall establish, 

through notice and opportunity for public to comment, requirements to improve the accessibility to the public of safety rating information of motorcoach services and operations. 

(B) DISPLAY.—In establishing the requirements under 

subparagraph (A), the Secretary shall consider requirements for each motor carrier that owns or leases 1 or more 

motorcoaches that transport passengers subject to the Secretary’s jurisdiction under section 13501 of title 49, United 

States Code, to prominently display safety fitness information pursuant to section 31144 of title 49, United States 

Code— 

(i) in each terminal of departure; 

(ii) in the motorcoach and visible from a position 

exterior to the vehicle at the point of departure, if the 

motorcoach does not depart from a terminal; and 

(iii) at all points of sale for such motorcoach services and operations. 

SEC. 32708. REPORT ON FEASIBILITY, BENEFITS, AND COSTS OF ESTABLISHING A SYSTEM OF CERTIFICATION OF TRAINING 

PROGRAMS. 

Not later than 2 years after the date of enactment of this Act, 

the Secretary of Transportation shall submit a report to the Committee on Commerce, Science, and Transportation of the Senate and 

the Committee on Transportation and Infrastructure of the House of 


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Representatives that describes the feasibility, benefits, and costs of 

establishing a system of certification of public and private schools 

and of motor carriers and motorcoach operators that provide motorcoach driver training. 

SEC. 32709. COMMERCIAL DRIVER’S LICENSE PASSENGER ENDORSEMENT REQUIREMENTS. 

(a) IN GENERAL.—Not later than 2 years after the date of enactment of this Act, the Secretary of Transportation shall review and 

assess the current knowledge and skill testing requirements for a 

commercial driver’s license passenger endorsement to determine 

what improvements to the knowledge test, the examination of driving skills, and the application of such requirements are necessary 

to ensure the safe operation of commercial motor vehicles designed 

or used to transport passengers. 

(b) REPORT.—Not later than 120 days after completion of the review and assessment under subsection (a), the Secretary of Transportation shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on 

Commerce, Science, and Transportation of the Senate— 

(1) a report on the review and assessment conducted under 

subsection (a); 

(2) a plan to implement any changes to the knowledge and 

skills tests; and 

(3) a timeframe by which the Secretary will implement the 

changes. 

SEC. 32710. SAFETY INSPECTION PROGRAM FOR COMMERCIAL MOTOR 

VEHICLES OF PASSENGERS. 

Not later than 3 years after the date of enactment of this Act, 

the Secretary of Transportation shall complete a rulemaking proceeding to consider requiring States to establish a program for annual inspections of commercial motor vehicles designed or used to 

transport passengers, including an assessment of— 

(1) the risks associated with improperly maintained or inspected commercial motor vehicles designed or used to transport 

passengers; 

(2) the effectiveness of existing Federal standards for the inspection of such vehicles in— 

(A) mitigating the risks described in paragraph (1); 

and 

(B) ensuring the safe and proper operation condition of 

such vehicles; and 

(3) the costs and benefits of a mandatory inspection program. 

SEC. 32711. REGULATIONS. 

Any standard or regulation prescribed or modified pursuant to 

the Motorcoach Enhanced Safety Act of 2012 shall be prescribed or 

modified in accordance with section 553 of title 5, United States 

Code. 


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Subtitle H—Safe Highways and 

Infrastructure Preservation 

SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY. 

(a) TRUCK SIZE AND WEIGHT LIMITS STUDY.—Not later than 45 

days after the date of enactment of this Act, the Secretary, in consultation with each relevant State and other applicable Federal 

agencies, shall commence a comprehensive truck size and weight 

limits study. The study shall— 

(1) provide data on accident frequency and evaluate factors 

related to accident risk of vehicles that operate with size and 

weight limits that are in excess of the Federal law and regulations in each State that allows vehicles to operate with size and 

weight limits that are in excess of the Federal law and regulations, or to operate under a Federal exemption or grandfather 

right, in comparison to vehicles that do not operate in excess of 

Federal law and regulations (other than vehicles with exemptions or grandfather rights); 

(2) evaluate the impacts to the infrastructure in each State 

that allows a vehicle to operate with size and weight limits that 

are in excess of the Federal law and regulations, or to operate 

under a Federal exemption or grandfather right, in comparison 

to vehicles that do not operate in excess of Federal law and regulations (other than vehicles with exemptions or grandfather 

rights), including— 

(A) the cost and benefits of the impacts in dollars; 

(B) the percentage of trucks operating in excess of the 

Federal size and weight limits; and 

(C) the ability of each State to recover the cost for the 

impacts, or the benefits incurred; 

(3) evaluate the frequency of violations in excess of the Federal size and weight law and regulations, the cost of the enforcement of the law and regulations, and the effectiveness of 

the enforcement methods; 

(4) assess the impacts that vehicles that operate with size 

and weight limits in excess of the Federal law and regulations, 

or that operate under a Federal exemption or grandfather right, 

in comparison to vehicles that do not operate in excess of Federal law and regulations (other than vehicles with exemptions 

or grandfather rights), have on bridges, including the impacts 

resulting from the number of bridge loadings; 

(5) compare and contrast the potential safety and infrastructure impacts of the current Federal law and regulations regarding truck size and weight limits in relation to— 

(A) six-axle and other alternative configurations of 

tractor-trailers; and 

(B) where available, safety records of foreign nations 

with truck size and weight limits and tractor-trailer configurations that differ from the Federal law and regulations; and 

(6) estimate— 

(A) the extent to which freight would likely be diverted 

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nectors if alternative truck configuration is allowed to operate and the effect that any such diversion would have on 

other modes of transportation; 

(B) the effect that any such diversion would have on 

public safety, infrastructure, cost responsibilities, fuel efficiency, freight transportation costs, and the environment; 

(C) the effect on the transportation network of the 

United States that allowing alternative truck configuration 

to operate would have; and 

(D) whether allowing alternative truck configuration to 

operate would result in an increase or decrease in the total 

number of trucks operating on principal arterial routes and 

National Highway System intermodal connectors; and 

(7) identify all Federal rules and regulations impacted by 

changes in truck size and weight limits. 

(b) REPORT.—Not later than 2 years after the date that the 

study is commenced under subsection (a), the Secretary shall submit 

a final report on the study, including all findings and recommendations, to the Committee on Commerce, Science, and Transportation 

and the Committee on Environment and Public Works of the Senate 

and the Committee on Transportation and Infrastructure of the 

House of Representatives. 

SEC. 32802. COMPILATION OF EXISTING STATE TRUCK SIZE AND 

WEIGHT LIMIT LAWS. 

(a) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the States, 

shall begin to compile— 

(1) a list for each State, as applicable, that describes each 

route of the National Highway System that allows a vehicle to 

operate in excess of the Federal truck size and weight limits 

that— 

(A) was authorized under State law on or before the 

date of enactment of this Act; and 

(B) was in actual and lawful operation on a regular or 

periodic basis (including seasonal operations) on or before 

the date of enactment of this Act; 

(2) a list for each State, as applicable, that describes— 

(A) the size and weight limitations applicable to each 

segment of the National Highway System in that State as 

listed under paragraph (1); 

(B) each combination that exceeds the Interstate weight 

limit, but that the Department of Transportation, other 

Federal agency, or a State agency has determined on or before the date of enactment of this Act, could be or could 

have been lawfully operated in the State; and 

(C) each combination that exceeds the Interstate weight 

limit, but that the Secretary determines could have been 

lawfully operated on a non-Interstate segment of the National Highway System in the State on or before the date 

of enactment of this Act; and 

(3) a list of each State law that designates or allows designation of size and weight limitations in excess of Federal law 

and regulations on routes of the National Highway System, including nondivisible loads. 


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(b) SPECIFICATIONS.—The Secretary, in consultation with the 

States, shall specify whether the determinations under paragraphs 

(1) and (2) of subsection (a) were made by the Department of Transportation, other Federal agency, or a State agency. 

(c) REPORT.—Not later than 2 years after the date of enactment 

of this Act, the Secretary shall submit a final report of the compilation under subsection (a) to the Committee on Commerce, Science, 

and Transportation and the Committee on Environment and Public 

Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 

Subtitle I—Miscellaneous 

PART I—MISCELLANEOUS 

SEC. 32911. PROHIBITION OF COERCION. 

Section 31136(a) is amended by— 

(1) striking ‘‘and’’ at the end of paragraph (3); 

(2) striking the period at the end of paragraph (4) and inserting ‘‘; and’’; and 

(3) adding after subsection (4) the following: 

‘‘(5) an operator of a commercial motor vehicle is not coerced by a motor carrier, shipper, receiver, or transportation 

intermediary to operate a commercial motor vehicle in violation 

of a regulation promulgated under this section, or chapter 51 

or chapter 313 of this title.’’. 

SEC. 32912. MOTOR CARRIER SAFETY ADVISORY COMMITTEE. 

Section 4144(d) of the Safe, Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy for Users (49 U.S.C. 31100 

note), is amended by striking ‘‘June 30, 2012’’ and inserting ‘‘September 30, 2013’’. 

SEC. 32913. WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS. 

(a) EXEMPTION STANDARDS.—Section 31315(b)(4) is amended— 

(1) in subparagraph (A), by inserting ‘‘(or, in the case of a 

request for an exemption from the physical qualification standards for commercial motor vehicle drivers, post on a web site 

established by the Secretary to implement the requirements of 

section 31149)’’ after ‘‘Federal Register’’; 

(2) by amending subparagraph (B) to read as follows: 

‘‘(B) UPON GRANTING A REQUEST.—Upon granting a request and before the effective date of the exemption, the Secretary shall publish in the Federal Register (or, in the case 

of an exemption from the physical qualification standards 

for commercial motor vehicle drivers, post on a web site established by the Secretary to implement the requirements of 

section 31149) the name of the person granted the exemption, the provisions from which the person is exempt, the effective period, and the terms and conditions of the exemption.’’; and 

(3) in subparagraph (C), by inserting ‘‘(or, in the case of a 

request for an exemption from the physical qualification standards for commercial motor vehicle drivers, post on a web site 

established by the Secretary to implement the requirements of 

section 31149)’’ after ‘‘Federal Register’’. 


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(b) PROVIDING NOTICE OF EXEMPTIONS TO STATE PERSONNEL.— 

Section 31315(b)(7) is amended to read as follows: 

‘‘(7) NOTIFICATION OF STATE COMPLIANCE AND ENFORCEMENT PERSONNEL.—Before the effective date of an exemption, 

the Secretary shall notify a State safety compliance and enforcement agency, and require the agency to notify the State’s roadside inspectors, that a person will be operating pursuant to an 

exemption and the terms and conditions that apply to the exemption.’’. 

(c) PILOT PROGRAMS.—Section 31315(c)(1) is amended by striking ‘‘in the Federal Register’’. 

(d) REPORT TO CONGRESS.—Section 31315 is amended by adding after subsection (d) the following: 

‘‘(e) REPORT TO CONGRESS.—The Secretary shall submit an annual report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives listing the waivers, exemptions, and pilot programs granted under this section, and any 

impacts on safety. 

‘‘(f) WEB SITE.—The Secretary shall ensure that the Federal 

Motor Carrier Safety Administration web site includes a link to the 

web site established by the Secretary to implement the requirements 

under sections 31149 and 31315. The link shall be in a clear and 

conspicuous location on the home page of the Federal Motor Carrier 

Safety Administration web site and be easily accessible to the public.’’. 

SEC. 32914. REGISTRATION REQUIREMENTS. 

(a) REQUIREMENTS FOR REGISTRATION.—Section 13901 is 

amended to read as follows: 

‘‘§ 1A13901. Requirements for registration 

‘‘(a) IN GENERAL.—A person may provide transportation as a 

motor carrier subject to jurisdiction under subchapter I of chapter 

135 or service as a freight forwarder subject to jurisdiction under 

subchapter III of such chapter, or service as a broker for transportation subject to jurisdiction under subchapter I of such chapter 

only if the person is registered under this chapter to provide such 

transportation or service. 

‘‘(b) REGISTRATION NUMBERS.— 

‘‘(1) IN GENERAL.—If the Secretary registers a person under 

this chapter to provide transportation or service, including as 

a motor carrier, freight forwarder, or broker, the Secretary shall 

issue a distinctive registration number to the person for each 

such authority to provide transportation or service for which the 

person is registered. 

‘‘(2) TRANSPORTATION OR SERVICE TYPE INDICATOR.—A 

number issued under paragraph (1) shall include an indicator 

of the type of transportation or service for which the registration 

number is issued, including whether the registration number is 

issued for registration of a motor carrier, freight forwarder, or 

broker. 

‘‘(c) SPECIFICATION OF AUTHORITY.—For each agreement to provide transportation or service for which registration is required 

under this chapter, the registrant shall specify, in writing, the auVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00429 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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thority under which the person is providing such transportation or 

service.’’. 

(b) AVAILABILITY OF INFORMATION.— 

(1) IN GENERAL.—Chapter 139 is amended by adding at the 

end the following: 

‘‘§ 13909. Availability of information 

‘‘The Secretary shall make information relating to registration 

and financial security required by this chapter publicly available on 

the Internet, including–– 

‘‘(1) the names and business addresses of the principals of 

each entity holding such registration; 

‘‘(2) the status of such registration; and 

‘‘(3) the electronic address of the entity’s surety provider for 

the submission of claims.’’. 

(2) CONFORMING AMENDMENT.—The analysis for chapter 

139 is amended by adding at the end the following: 

‘‘13909. Availability of information.’’. 

SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS. 

Section 13902, as amended by sections 32101 and 32107(a) of 

this Act, is amended–– 

(1) in subsection (a)— 

(A) in paragraph (1), by inserting ‘‘using self-propelled 

vehicles the motor carrier owns, rents, or leases’’ after 

‘‘motor carrier’’; and 

(B) by adding at the end the following: 

‘‘(6) SEPARATE REGISTRATION REQUIRED.—A motor carrier 

may not broker transportation services unless the motor carrier 

has registered as a broker under this chapter.’’; and 

(2) by inserting after subsection (h) the following: 

‘‘(i) REGISTRATION AS FREIGHT FORWARDER OR BROKER REQUIRED.—A motor carrier registered under this chapter–– 

‘‘(1) may only provide transportation of property with— 

‘‘(A) self-propelled motor vehicles owned or leased by 

the motor carrier; or 

‘‘(B) interchanges under regulations issued by the Secretary if the originating carrier— 

‘‘(i) physically transports the cargo at some point; 

and 

‘‘(ii) retains liability for the cargo and for payment 

of interchanged carriers; and 

‘‘(2) may not arrange transportation described in paragraph (1) unless the motor carrier has obtained a separate registration as a freight forwarder or broker for transportation 

under section 13903 or 13904, as applicable.’’. 

SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS. 

(a) REGISTRATION OF FREIGHT FORWARDERS.—Section 13903, 

as amended by section 32107(b) of this Act, is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘finds that the person is fit’’ and inserting the following: ‘‘determines that the person–– 

‘‘(1) has sufficient experience to qualify the person to act as 

a freight forwarder; and 


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‘‘(2) is fit’’; and 

(B) by striking ‘‘and the Board’’; 

(2) by redesignating subsections (b) and (c) as subsections 

(d) and (e), respectively; 

(3) by inserting after subsection (a) the following: 

‘‘(b) DURATION.—A registration issued under subsection (a) 

shall only remain in effect while the freight forwarder is in compliance with section 13906(c). 

‘‘(c) EXPERIENCE OR TRAINING REQUIREMENT.—Each freight forwarder shall employ, as an officer, an individual who–– 

‘‘(1) has at least 3 years of relevant experience; or 

‘‘(2) provides the Secretary with satisfactory evidence of the 

individual’s knowledge of related rules, regulations, and industry practices.’’; and 

(4) by amending subsection (d), as redesignated, to read as 

follows: 

‘‘(d) REGISTRATION AS MOTOR CARRIER REQUIRED.— 

‘‘(1) IN GENERAL.—A freight forwarder may not provide 

transportation as a motor carrier unless the freight forwarder 

has registered separately under this chapter to provide transportation as a motor carrier.’’. 

(b) REGISTRATION OF BROKERS.—Section 13904, as amended by 

section 32107(c) of this Act, is amended— 

(1) in subsection (a), by striking ‘‘finds that the person is 

fit’’ and inserting the following: ‘‘determines that the person–– 

‘‘(1) has sufficient experience to qualify the person to act as 

a broker for transportation; and 

‘‘(2) is fit’’; 

(2) by redesignating subsections (b), (c), (d), and (e) as subsections (d), (e), (f), and (g) respectively; 

(3) by inserting after subsection (a) the following: 

‘‘(b) DURATION.—A registration issued under subsection (a) 

shall only remain in effect while the broker for transportation is in 

compliance with section 13906(b). 

‘‘(c) EXPERIENCE OR TRAINING REQUIREMENTS.—Each broker 

shall employ, as an officer, an individual who–– 

‘‘(1) has at least 3 years of relevant experience; or 

‘‘(2) provides the Secretary with satisfactory evidence of the 

individual’s knowledge of related rules, regulations, and industry practices.’’; 

(4) by amending subsection (d), as redesignated, to read as 

follows: 

‘‘(d) REGISTRATION AS MOTOR CARRIER REQUIRED.— 

‘‘(1) IN GENERAL.—A broker for transportation may not provide transportation as a motor carrier unless the broker has 

registered separately under this chapter to provide transportation as a motor carrier. 

‘‘(2) LIMITATION.—This subsection does not apply to a 

motor carrier registered under this chapter or to an employee or 

agent of the motor carrier to the extent the transportation is to 

be provided entirely by the motor carrier, with other registered 

motor carriers, or with rail or water carriers.’’; and 

(5) by amending subsection (e), as redesignated, to read as 

follows: 


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‘‘(e) REGULATION TO PROTECT MOTOR CARRIERS AND SHIPPERS.—Regulations of the Secretary applicable to brokers registered 

under this section shall provide for the protection of motor carriers 

and shippers by motor vehicle.’’. 

SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION. 

Section 13905(c) is amended to read as follows: 

‘‘(c) EFFECTIVE PERIOD.— 

‘‘(1) IN GENERAL.—Except as otherwise provided in this 

part, each registration issued under section 13902, 13903, or 

13904— 

‘‘(A) shall be effective beginning on the date specified by 

the Secretary; and 

‘‘(B) shall remain in effect for such period as the Secretary determines appropriate by regulation. 

‘‘(2) REISSUANCE OF REGISTRATION.— 

‘‘(A) REQUIREMENT.—Not later than 4 years after the 

date of enactment of the Commercial Motor Vehicle Safety 

Enhancement Act of 2012, the Secretary shall require a 

freight forwarder or broker to renew its registration issued 

under this chapter. 

‘‘(B) EFFECTIVE PERIOD.—Each registration renewal 

under subparagraph (A)— 

‘‘(i) shall expire not later than 5 years after the 

date of such renewal; and 

‘‘(ii) may be further renewed as provided under 

this chapter.’’. 

SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT FORWARDERS. 

(a) IN GENERAL.—Section 13906 is amended by striking subsections (b) and (c) and inserting the following: 

‘‘(b) BROKER FINANCIAL SECURITY REQUIREMENTS.— 

‘‘(1) REQUIREMENTS.— 

‘‘(A) IN GENERAL.—The Secretary may register a person 

as a broker under section 13904 only if the person files with 

the Secretary a surety bond, proof of trust fund, or other financial security, or a combination thereof, in a form and 

amount, and from a provider, determined by the Secretary 

to be adequate to ensure financial responsibility. 

‘‘(B) USE OF A GROUP SURETY BOND, TRUST FUND, OR

OTHER SURETY.—In implementing the standards established by subparagraph (A), the Secretary may authorize 

the use of a group surety bond, trust fund, or other financial security, or a combination thereof, that meets the requirements of this subsection. 

‘‘(C) PROOF OF TRUST OR OTHER FINANCIAL SECURITY.— 

For purposes of subparagraph (A), a trust fund or other financial security may be acceptable to the Secretary only if 

the trust fund or other financial security consists of assets 

readily available to pay claims without resort to personal 

guarantees or collection of pledged accounts receivable. 

‘‘(2) SCOPE OF FINANCIAL RESPONSIBILITY.— ‘‘(A) PAYMENT OF CLAIMS.—A surety bond, trust fund, 

or other financial security obtained under paragraph (1) 

shall be available to pay any claim against a broker arisVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00432 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ing from its failure to pay freight charges under its contracts, agreements, or arrangements for transportation subject to jurisdiction under chapter 135 if–– 

‘‘(i) subject to the review by the surety provider, the 

broker consents to the payment; 

‘‘(ii) in any case in which the broker does not respond to adequate notice to address the validity of the 

claim, the surety provider determines that the claim is 

valid; or 

‘‘(iii) the claim is not resolved within a reasonable 

period of time following a reasonable attempt by the 

claimant to resolve the claim under clauses (i) and (ii), 

and the claim is reduced to a judgment against the 

broker. 

‘‘(B) RESPONSE OF SURETY PROVIDERS TO CLAIMS.—If a 

surety provider receives notice of a claim described in subparagraph (A), the surety provider shall–– 

‘‘(i) respond to the claim on or before the 30th day 

following the date on which the notice was received; 

and 

‘‘(ii) in the case of a denial, set forth in writing for 

the claimant the grounds for the denial. 

‘‘(C) COSTS AND ATTORNEY’S FEES.—In any action 

against a surety provider to recover on a claim described in 

subparagraph (A), the prevailing party shall be entitled to 

recover its reasonable costs and attorney’s fees. 

‘‘(3) MINIMUM FINANCIAL SECURITY.—Each broker subject to 

the requirements of this section shall provide financial security 

of $75,000 for purposes of this subsection, regardless of the 

number of branch offices or sales agents of the broker. 

‘‘(4) CANCELLATION NOTICE.—If a financial security required under this subsection is canceled–– 

‘‘(A) the holder of the financial security shall provide 

electronic notification to the Secretary of the cancellation 

not later than 30 days before the effective date of the cancellation; and 

‘‘(B) the Secretary shall immediately post such notification on the public Internet Website of the Department of 

Transportation. 

‘‘(5) SUSPENSION.—The Secretary shall immediately suspend the registration of a broker issued under this chapter if 

the available financial security of that person falls below the 

amount required under this subsection. 

‘‘(6) PAYMENT OF CLAIMS IN CASES OF FINANCIAL FAILURE

OR INSOLVENCY.—If a broker registered under this chapter experiences financial failure or insolvency, the surety provider of the 

broker shall–– 

‘‘(A) submit a notice to cancel the financial security to 

the Administrator in accordance with paragraph (4); 

‘‘(B) publicly advertise for claims for 60 days beginning 

on the date of publication by the Secretary of the notice to 

cancel the financial security; and 

‘‘(C) pay, not later than 30 days after the expiration of 

the 60-day period for submission of claims–– 


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‘‘(i) all uncontested claims received during such period; or 

‘‘(ii) a pro rata share of such claims if the total 

amount of such claims exceeds the financial security 

available. 

‘‘(7) PENALTIES.— ‘‘(A) CIVIL ACTIONS.—Either the Secretary or the Attorney General of the United States may bring a civil action 

in an appropriate district court of the United States to enforce the requirements of this subsection or a regulation 

prescribed or order issued under this subsection. The court 

may award appropriate relief, including injunctive relief. 

‘‘(B) CIVIL PENALTIES.—If the Secretary determines, 

after notice and opportunity for a hearing, that a surety 

provider of a broker registered under this chapter has violated the requirements of this subsection or a regulation 

prescribed under this subsection, the surety provider shall 

be liable to the United States for a civil penalty in an 

amount not to exceed $10,000. 

‘‘(C) ELIGIBILITY.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider 

of a broker registered under this chapter has violated the 

requirements of this subsection or a regulation prescribed 

under this subsection, the surety provider shall be ineligible 

to provider broker financial security for 3 years. 

‘‘(8) DEDUCTION OF COSTS PROHIBITED.—The amount of the 

financial security required under this subsection may not be reduced by deducting attorney’s fees or administrative costs. 

‘‘(c) FREIGHT FORWARDER FINANCIAL SECURITY REQUIREMENTS.— 

‘‘(1) REQUIREMENTS.— ‘‘(A) IN GENERAL.—The Secretary may register a person 

as a freight forwarder under section 13903 only if the person files with the Secretary a surety bond, proof of trust 

fund, other financial security, or a combination of such instruments, in a form and amount, and from a provider, determined by the Secretary to be adequate to ensure financial responsibility. 

‘‘(B) USE OF A GROUP SURETY BOND, TRUST FUND, OR

OTHER FINANCIAL SECURITY.—In implementing the standards established under subparagraph (A), the Secretary 

may authorize the use of a group surety bond, trust fund, 

other financial security, or a combination of such instruments, that meets the requirements of this subsection. 

‘‘(C) SURETY BONDS.—A surety bond obtained under 

this section may only be obtained from a bonding company 

that has been approved by the Secretary of the Treasury. 

‘‘(D) PROOF OF TRUST OR OTHER FINANCIAL SECURITY.—For purposes of subparagraph (A), a trust fund or 

other financial security may not be accepted by the Secretary unless the trust fund or other financial security consists of assets readily available to pay claims without resort 

to personal guarantees or collection of pledged accounts receivable. 

‘‘(2) SCOPE OF FINANCIAL RESPONSIBILITY.— 


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‘‘(A) PAYMENT OF CLAIMS.—A surety bond, trust fund, 

or other financial security obtained under paragraph (1) 

shall be available to pay any claim against a freight forwarder arising from its failure to pay freight charges under 

its contracts, agreements, or arrangements for transportation subject to jurisdiction under chapter 135 if–– 

‘‘(i) subject to the review by the surety provider, the 

freight forwarder consents to the payment; 

‘‘(ii) in the case the freight forwarder does not respond to adequate notice to address the validity of the 

claim, the surety provider determines the claim is 

valid; or 

‘‘(iii) the claim— 

‘‘(I) is not resolved within a reasonable period 

of time following a reasonable attempt by the 

claimant to resolve the claim under clauses (i) and 

(ii); and 

‘‘(II) is reduced to a judgment against the 

freight forwarder. 

‘‘(B) RESPONSE OF SURETY PROVIDERS TO CLAIMS.—If a 

surety provider receives notice of a claim described in subparagraph (A), the surety provider shall–– 

‘‘(i) respond to the claim on or before the 30th day 

following receipt of the notice; and 

‘‘(ii) in the case of a denial, set forth in writing for 

the claimant the grounds for the denial. 

‘‘(C) COSTS AND ATTORNEY’S FEES.—In any action 

against a surety provider to recover on a claim described in 

subparagraph (A), the prevailing party shall be entitled to 

recover its reasonable costs and attorney’s fees. 

‘‘(3) FREIGHT FORWARDER INSURANCE.— 

‘‘(A) IN GENERAL.—The Secretary may register a person 

as a freight forwarder under section 13903 only if the person files with the Secretary a surety bond, insurance policy, 

or other type of financial security that meets standards prescribed by the Secretary. 

‘‘(B) LIABILITY INSURANCE.—A financial security filed 

by a freight forwarder under subparagraph (A) shall be 

sufficient to pay an amount, not to exceed the amount of the 

financial security, for each final judgment against the 

freight forwarder for bodily injury to, or death of, an individual, or loss of, or damage to, property (other than property referred to in subparagraph (C)), resulting from the 

negligent operation, maintenance, or use of motor vehicles 

by, or under the direction and control of, the freight forwarder while providing transfer, collection, or delivery 

service under this part. 

‘‘(C) CARGO INSURANCE.—The Secretary may require a 

registered freight forwarder to file with the Secretary a surety bond, insurance policy, or other type of financial security approved by the Secretary, that will pay an amount, 

not to exceed the amount of the financial security, for loss 

of, or damage to, property for which the freight forwarder 

provides service. 


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‘‘(4) MINIMUM FINANCIAL SECURITY.—Each freight forwarder subject to the requirements of this section shall provide 

financial security of $75,000, regardless of the number of 

branch offices or sales agents of the freight forwarder. 

‘‘(5) CANCELLATION NOTICE.—If a financial security required under this subsection is canceled–– 

‘‘(A) the holder of the financial security shall provide 

electronic notification to the Secretary of the cancellation 

not later than 30 days before the effective date of the cancellation; and 

‘‘(B) the Secretary shall immediately post such notification on the public Internet web site of the Department of 

Transportation. 

‘‘(6) SUSPENSION.—The Secretary shall immediately suspend the registration of a freight forwarder issued under this 

chapter if its available financial security falls below the amount 

required under this subsection. 

‘‘(7) PAYMENT OF CLAIMS IN CASES OF FINANCIAL FAILURE

OR INSOLVENCY.—If a freight forwarder registered under this 

chapter experiences financial failure or insolvency, the surety 

provider of the freight forwarder shall–– 

‘‘(A) submit a notice to cancel the financial security to 

the Administrator in accordance with paragraph (5); 

‘‘(B) publicly advertise for claims for 60 days beginning 

on the date of publication by the Secretary of the notice to 

cancel the financial security; and 

‘‘(C) pay, not later than 30 days after the expiration of 

the 60-day period for submission of claims–– 

‘‘(i) all uncontested claims received during such period; or 

‘‘(ii) a pro rata share of such claims if the total 

amount of such claims exceeds the financial security 

available. 

‘‘(8) PENALTIES.— 

‘‘(A) CIVIL ACTIONS.—Either the Secretary or the Attorney General may bring a civil action in an appropriate district court of the United States to enforce the requirements 

of this subsection or a regulation prescribed or order issued 

under this subsection. The court may award appropriate relief, including injunctive relief. 

‘‘(B) CIVIL PENALTIES.—If the Secretary determines, 

after notice and opportunity for a hearing, that a surety 

provider of a freight forwarder registered under this chapter has violated the requirements of this subsection or a 

regulation prescribed under this subsection, the surety provider shall be liable to the United States for a civil penalty 

in an amount not to exceed $10,000. 

‘‘(C) ELIGIBILITY.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider 

of a freight forwarder registered under this chapter has violated the requirements of this subsection or a regulation 

prescribed under this subsection, the surety provider shall 

be ineligible to provide freight forwarder financial security 

for 3 years 


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‘‘(9) DEDUCTION OF COSTS PROHIBITED.—The amount of the 

financial security required under this subsection may not be reduced by deducting attorney’s fees or administrative costs.’’. 

(b) RULEMAKING.—Not later than 1 year after the date of enactment of this Act, the Secretary shall issue regulations to implement 

and enforce the requirements under subsections (b) and (c) of section 

13906 of title 49, United States Code, as amended by subsection (a). 

(c) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect on the date that is 1 year after the date of enactment of this Act. 

SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES. 

(a) IN GENERAL.—Chapter 149 is amended by adding at the 

end the following: 

‘‘SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES. 

‘‘(a) PROHIBITED ACTIVITIES.—A person may provide interstate 

brokerage services as a broker only if that person–– 

‘‘(1) is registered under, and in compliance with, section 

13904; and 

‘‘(2) has satisfied the financial security requirements under 

section 13906. 

‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply to— 

‘‘(1) a non-vessel-operating common carrier (as defined in 

section 40102 of title 46) or an ocean freight forwarder (as defined in section 40102 of title 46) when arranging for inland 

transportation as part of an international through movement 

involving ocean transportation between the United States and 

a foreign port; 

‘‘(2) a customs broker licensed in accordance with section 

111.2 of title 19, Code of Federal Regulations, only to the extent 

that the customs broker is engaging in a movement under a 

customs bond or in a transaction involving customs business, as 

defined by section 111.1 of title 19, Code of Federal Regulations; 

or 

‘‘(3) an indirect air carrier holding a Standard Security 

Program approved by the Transportation Security Administration, only to the extent that the indirect air carrier is engaging 

in the activities as an air carrier as defined in section 40102(2) 

or in the activities defined in section 40102(3). 

‘‘(c) CIVIL PENALTIES AND PRIVATE CAUSE OF ACTION.—Any 

person who knowingly authorizes, consents to, or permits, directly 

or indirectly, either alone or in conjunction with any other person, 

a violation of subsection (a) is liable— 

‘‘(1) to the United States Government for a civil penalty in 

an amount not to exceed $10,000 for each violation; and 

‘‘(2) to the injured party for all valid claims incurred without regard to amount. 

‘‘(d) LIABLE PARTIES.—The liability for civil penalties and for 

claims under this section for unauthorized brokering shall apply, 

jointly and severally— 

‘‘(1) to any corporate entity or partnership involved; and 

‘‘(2) to the individual officers, directors, and principals of 

such entities.’’. 


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(b) CLERICAL AMENDMENT.—The analysis for chapter 149 is 

amended by adding at the end the following: 

‘‘14916. Unlawful brokerage activities.’’. 

PART II—HOUSEHOLD GOODS 

TRANSPORTATION 

SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR HOUSEHOLD GOODS MOTOR CARRIERS. 

(a) Section 13902(a)(2) is amended— 

(1) in subparagraph (B), by striking ‘‘section 13702(c);’’ and 

inserting ‘‘section 13702(c); and’’; 

(2) by amending subparagraph (C) to read as follows: 

‘‘(C) demonstrates, before being registered, through successful completion of a proficiency examination established 

by the Secretary, knowledge and intent to comply with applicable Federal laws relating to consumer protection, estimating, consumers’ rights and responsibilities, and options 

for limitations of liability for loss and damage.’’; and 

(3) by striking subparagraph (D). 

(b) COMPLIANCE REVIEWS OF NEW HOUSEHOLD GOODS MOTOR

CARRIERS.—Section 31144(g), as amended by section 32102 of this 

Act, is amended by adding at the end the following: 

‘‘(6) ADDITIONAL REQUIREMENTS FOR HOUSEHOLD GOODS

MOTOR CARRIERS.—(A) In addition to the requirements of this 

subsection, the Secretary shall require, by regulation, each registered household goods motor carrier to undergo a consumer 

protection standards review not later than 18 months after the 

household goods motor carrier begins operations under such authority. 

‘‘(B) ELEMENTS.—In the regulations issued pursuant to 

subparagraph (A), the Secretary shall establish the elements of the consumer protections standards review, including basic management controls. In establishing the elements, the Secretary shall consider the effects on small 

businesses and shall consider establishing alternate locations where such reviews may be conducted for the convenience of small businesses.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect 2 years after the date of enactment of this Act. 

SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS. 

(a) INJUNCTIVE RELIEF.—Section 14704(a)(1) is amended by 

striking ‘‘and 14103’’ and inserting ‘‘, 14103, and 14915(c)’’. 

(b) CIVIL PENALTIES.—Section 14915(a)(1) is amended by adding at the end the following: 

‘‘The United States may assign all or a portion of the civil penalty to an aggrieved shipper. The Secretary of Transportation shall 

establish criteria upon which such assignments shall be made. The 

Secretary may order, after notice and an opportunity for a proceeding, that a person found holding a household goods shipment 

hostage return the goods to an aggrieved shipper.’’. 

SEC. 32923. SETTLEMENT AUTHORITY. 

(a) SETTLEMENT OF GENERAL CIVIL PENALTIES.—Section 14901 

is amended by adding at the end the following: 


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‘‘(h) SETTLEMENT OF HOUSEHOLD GOODS CIVIL PENALTIES.— Nothing in this section shall be construed to prohibit the Secretary 

from accepting partial payment of a civil penalty as part of a settlement agreement in the public interest, or from holding imposition 

of any part of a civil penalty in abeyance.’’. 

(b) SETTLEMENT OF HOUSEHOLD GOODS CIVIL PENALTIES.—Section 14915(a) is amended by adding at the end the following: 

‘‘(4) SETTLEMENT AUTHORITY.—Nothing in this section 

shall be construed as prohibiting the Secretary from accepting 

partial payment of a civil penalty as part of a settlement agreement in the public interest, or from holding imposition of any 

part of a civil penalty in abeyance.’’. 

PART III—TECHNICAL AMENDMENTS 

SEC. 32931. UPDATE OF OBSOLETE TEXT. 

(a) Section 31137(g), as redesignated by section 32301 of this 

Act, is amended by striking ‘‘Not later than December 1, 1990, the 

Secretary shall prescribe’’ and inserting ‘‘The Secretary shall maintain’’. 

(b) Section 31151(a) is amended— 

(1) by amending paragraph (1) to read as follows: 

‘‘(1) IN GENERAL.—The Secretary of Transportation shall 

maintain a program to ensure that intermodal equipment used 

to transport intermodal containers is safe and systematically 

maintained.’’; and 

(2) by striking paragraph (4). 

(c) Section 31307(b) is amended by striking ‘‘Not later than December 18, 1994, the Secretary shall prescribe’’ and inserting ‘‘The 

Secretary shall maintain’’. 

(d) Section 31310(g)(1) is amended by striking ‘‘Not later than 

1 year after the date of enactment of this Act, the’’ and inserting 

‘‘The’’. 

SEC. 32932. CORRECTION OF INTERSTATE COMMERCE COMMISSION 

REFERENCES. 

(a) SAFETY INFORMATION AND INTERVENTION IN INTERSTATE

COMMERCE COMMISSION PROCEEDINGS.—Chapter 3 is amended— 

(1) by repealing section 307; 

(2) in the analysis, by striking the item relating to section 

307; 

(3) in section 333(d)(1)(C), by striking ‘‘Interstate Commerce 

Commission’’ and inserting ‘‘Surface Transportation Board’’; 

and 

(4) in section 333(e)— 

(A) by striking ‘‘Interstate Commerce Commission’’ and 

inserting ‘‘Surface Transportation Board’’; and 

(B) by striking ‘‘Commission’’ and inserting ‘‘Board’’. 

(b) FILING AND PROCEDURE FOR APPLICATION TO ABANDON OR

DISCONTINUE.—Section 10903(b)(2) is amended by striking 

‘‘24706(c) of this title’’ and inserting ‘‘24706(c) of this title before 

May 31, 1998’’. 

(c) TECHNICAL AMENDMENTS TO PART C OF SUBTITLE V.— 

(1) Section 24307(b)(3) is amended by striking ‘‘Interstate 

Commerce Commission’’ and inserting ‘‘Surface Transportation 

Board’’. 


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(2) Section 24311 is amended— 

(A) by striking ‘‘Interstate Commerce Commission’’ and 

inserting ‘‘Surface Transportation Board’’; 

(B) by striking ‘‘Commission’’ each place it appears and 

inserting ‘‘Board’’; and 

(C) by striking ‘‘Commission’s’’ and inserting ‘‘Board’s’’. 

(3) Section 24902 is amended— 

(A) by striking ‘‘Interstate Commerce Commission’’ each 

place it appears and inserting ‘‘Surface Transportation 

Board’’; and 

(B) by striking ‘‘Commission’’ each place it appears and 

inserting ‘‘Board’’. 

(4) Section 24904 is amended— 

(A) by striking ‘‘Interstate Commerce Commission’’ and 

inserting ‘‘Surface Transportation Board’’; and 

(B) by striking ‘‘Commission’’ each place it appears and 

inserting ‘‘Board’’. 

SEC. 32933. TECHNICAL AND CONFORMING AMENDMENTS. 

(a) Section 13905(f)(1)(A) is amended by striking ‘‘section 

13904(c)’’ and inserting ‘‘section 13904(e)’’; 

(b) Section 14504a(c)(1) is amended— 

(1) in subparagraph (C), by striking ‘‘sections’’ and inserting ‘‘section’’; and 

(2) in subparagraph (D)(ii)(II) by striking the period at the 

end and inserting ‘‘; and’’. 

(c) Section 31103(a) is amended by striking ‘‘section 

31102(b)(1)(E)’’ and inserting ‘‘section 31102(b)(2)(E)’’. 

(d) Section 31103(b) is amended by striking ‘‘authorized by section 31104(f)(2)’’. 

(e) Section 31309(b)(2) is amended by striking ‘‘31308(2)’’ and 

inserting ‘‘31308(3)’’. 

SEC. 32934. EXEMPTIONS FROM REQUIREMENTS FOR COVERED FARM 

VEHICLES. 

(a) FEDERAL REQUIREMENTS.—A covered farm vehicle, including the individual operating that vehicle, shall be exempt from the 

following: 

(1) Any requirement relating to commercial driver’s licenses 

established under chapter 313 of title 49, United States Code. 

(2) Any requirement relating to drug-testing established 

under chapter 313 of title 49, United States Code. 

(3) Any requirement relating to medical certificates established under— 

(A) subchapter III of chapter 311 of title 49, United 

States Code; or 

(B) chapter 313 of title 49, United States Code. 

(4) Any requirement relating to hours of service established 

under— 

(A) subchapter III of chapter 311 of title 49, United 

States Code; or 

(B) chapter 315 of title 49, United States Code. 

(5) Any requirement relating to vehicle inspection, repair, 

and maintenance established under— 

(A) subchapter III of chapter 311 of title 49, United 

States Code; or 


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(B) chapter 315 of title 49, United States Code. 

(b) STATE REQUIREMENTS.— (1) IN GENERAL.—Federal transportation funding to a State 

may not be terminated, limited, or otherwise interfered with as 

a result of the State exempting a covered farm vehicle, including the individual operating that vehicle, from any State requirement relating to the operation of that vehicle. 

(2) EXCEPTION.—Paragraph (1) does not apply with respect 

to a covered farm vehicle transporting hazardous materials that 

require a placard. 

(c) COVERED FARM VEHICLE DEFINED.— (1) IN GENERAL.—In this section, the term ‘‘covered farm vehicle’’ means a motor vehicle (including an articulated motor 

vehicle)— 

(A) that— 

(i) is traveling in the State in which the vehicle is 

registered or another State; 

(ii) is operated by— 

(I) a farm owner or operator; 

(II) a ranch owner or operator; or 

(III) an employee or family member of an individual specified in subclause (I) or (II); 

(iii) is transporting to or from a farm or ranch— 

(I) agricultural commodities; 

(II) livestock; or 

(III) machinery or supplies; 

(iv) except as provided in paragraph (2), is not 

used in the operations of a for-hire motor carrier; and 

(v) is equipped with a special license plate or other 

designation by the State in which the vehicle is registered to allow for identification of the vehicle as a 

farm vehicle by law enforcement personnel; and 

(B) that has a gross vehicle weight rating or gross vehicle weight, whichever is greater, that is— 

(i) 26,001 pounds or less; or 

(ii) greater than 26,001 pounds and traveling within the State or within 150 air miles of the farm or 

ranch with respect to which the vehicle is being operated. 

(2) INCLUSION.—In this section, the term ‘‘covered farm vehicle’’ includes a motor vehicle that meets the requirements of 

paragraph (1) (other than paragraph (1)(A)(iv)) and— 

(A) is operated pursuant to a crop share farm lease 

agreement; 

(B) is owned by a tenant with respect to that agreement; and 

(C) is transporting the landlord’s portion of the crops 

under that agreement. 

(d) SAFETY STUDY.—The Secretary of Transportation shall conduct a study of the exemption required by subsection (a) as follows: 

(1) Data and analysis of covered farm vehicles shall include— 

(A) the number of vehicles that are operated subject to 

each of the regulatory exemptions permitted under subsection (a); 


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(B) the number of drivers that operate covered farm vehicles subject to each of the regulatory exemptions permitted under subsection (a); 

(C) the number of crashes involving covered farm vehicles; 

(D) the number of occupants and non-occupants injured in crashes involving covered farm vehicles; 

(E) the number of fatalities of occupants and non-occupants killed in crashes involving farm vehicles; 

(F) crash investigations and accident reconstruction investigations of all fatalities in crashes involving covered 

farm vehicles; 

(G) overall operating mileage of covered farm vehicles; 

(H) numbers of covered farm vehicles that operate in 

neighboring States; and 

(I) any other data the Secretary deems necessary to 

analyze and include. 

(2) A listing of State regulations issued and maintained in 

each State that are identical to the Federal regulations that are 

subject to exemption in subsection (a). 

(3) The Secretary shall report the findings of the study to 

the appropriate committees of Congress not later than 18 

months after the date of enactment of this Act. 

(e) CONSTRUCTION.—Nothing in this section shall be construed 

as authority for the Secretary of Transportation to prescribe regulations. 

TITLE III—HAZARDOUS MATERIALS 

TRANSPORTATION SAFETY IMPROVEMENT ACT OF 2012 

SEC. 33001. SHORT TITLE. 

This title may be cited as the ‘‘Hazardous Materials Transportation Safety Improvement Act of 2012’’. 

SEC. 33002. DEFINITION. 

In this title, the term ‘‘Secretary’’ means the Secretary of Transportation. 

SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE. 

Except as otherwise expressly provided, whenever in this title an 

amendment or repeal is expressed in terms of an amendment to, or 

repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United 

States Code. 

SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS. 

(a) TRAINING CURRICULUM.—Section 5115 is amended— 

(1) in subsection (b)(1)(B), by striking ‘‘basic’’; 

(2) in subsection (b)(2), by striking ‘‘basic’’; and 

(3) in subsection (c), by striking ‘‘basic’’. 

(b) OPERATIONS LEVEL TRAINING.—Section 5116 is amended— 

(1) in subsection (b)(1), by adding at the end the following: 

‘‘To the extent that a grant is used to train emergency responders, the State or Indian tribe shall provide written certification 


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to the Secretary that the emergency responders who receive 

training under the grant will have the ability to protect nearby 

persons, property, and the environment from the effects of accidents or incidents involving the transportation of hazardous 

material in accordance with existing regulations or National 

Fire Protection Association standards for competence of responders to accidents and incidents involving hazardous materials.’’; 

(2) in subsection (j)— 

(A) in paragraph (1), by striking ‘‘funds’’ and all that 

follows through ‘‘fighting fires for’’ and inserting ‘‘funds 

and through a competitive process, make a grant or make 

grants to national nonprofit fire service organizations for’’; 

(B) in paragraph (3)(A), by striking ‘‘train’’ and inserting ‘‘provide training, including portable training, for’’; 

(C) in paragraph (4)— 

(i) by striking ‘‘train’’ and inserting ‘‘provide training, including portable training, for’’; and 

(ii) by inserting ‘‘comply with Federal regulations 

and national consensus standards for hazardous materials response and’’ after ‘‘training course shall’’; 

(D) by redesignating paragraph (5) as paragraph (8); 

and 

(E) by inserting after paragraph (4) the following: 

‘‘(5) The Secretary may not award a grant to an organization under this subsection unless the organization ensures that 

emergency responders who receive training under the grant will 

have the ability to protect nearby persons, property, and the environment from the effects of accidents or incidents involving 

the transportation of hazardous material in accordance with existing regulations or National Fire Protection Association 

standards for competence of responders to accidents and incidents involving hazardous materials. 

‘‘(6) Notwithstanding paragraphs (1) and (3), to the extent 

determined appropriate by the Secretary, a grant awarded by 

the Secretary to an organization under this subsection to conduct hazardous material response training programs may be 

used to train individuals with responsibility to respond to accidents and incidents involving hazardous material. 

‘‘(7) For the purposes of this subsection, the term ‘portable 

training’ means live, instructor-led training provided by certified fire service instructors that can be offered in any suitable 

setting, rather than specific designated facilities. Under this 

training delivery model, instructors travel to locations convenient to students and utilize local facilities and resources.’’; and 

(3) in subsection (k)— 

(A) by striking ‘‘annually’’ and inserting ‘‘an annual report’’; 

(B) by inserting ‘‘the report’’ after ‘‘make available’’; 

(C) by striking ‘‘information’’ and inserting ‘‘. The report submitted under this subsection shall include information’’; and 

(D) by striking ‘‘The report shall identify’’ and all that 

follows and inserting the following: ‘‘The report submitted 


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under this subsection shall identify the ultimate recipients 

of such grants and include— 

‘‘(A) a detailed accounting and description of each 

grant expenditure by each grant recipient, including the 

amount of, and purpose for, each expenditure; 

‘‘(B) the number of persons trained under the grant 

program, by training level; 

‘‘(C) an evaluation of the efficacy of such planning and 

training programs; and 

‘‘(D) any recommendations the Secretary may have for 

improving such grant programs.’’. 

SEC. 33005. PAPERLESS HAZARD COMMUNICATIONS PILOT PROGRAM. 

(a) IN GENERAL.—The Secretary may conduct pilot projects to 

evaluate the feasibility and effectiveness of using paperless hazard 

communications systems. At least 1 of the pilot projects under this 

section shall take place in a rural area. 

(b) REQUIREMENTS.—In conducting pilot projects under this section, the Secretary— 

(1) may not waive the requirements under section 5110 of 

title 49, United States Code; and 

(2) shall consult with organizations representing— 

(A) fire services personnel; 

(B) law enforcement and other appropriate enforcement 

personnel; 

(C) other emergency response providers; 

(D) persons who offer hazardous material for transportation; 

(E) persons who transport hazardous material by air, 

highway, rail, and water; and 

(F) employees of persons who transport or offer for 

transportation hazardous material by air, highway, rail, 

and water. 

(c) REPORT.—Not later than 2 years after the date of enactment 

of this Act, the Secretary shall— 

(1) prepare a report on the results of the pilot projects carried out under this section, including— 

(A) a detailed description of the pilot projects; 

(B) an evaluation of each pilot project, including an 

evaluation of the performance of each paperless hazard 

communications system in such project; 

(C) an assessment of the safety and security impact of 

using paperless hazard communications systems, including 

any impact on the public, emergency response, law enforcement, and the conduct of inspections and investigations; 

(D) an analysis of the associated benefits and costs of 

using the paperless hazard communications systems for 

each mode of transportation; and 

(E) a recommendation that incorporates the information gathered in subparagraphs (A), (B), (C), and (D) on 

whether paperless hazard communications systems should 

be permanently incorporated into the Federal hazardous 

material transportation safety program under chapter 51 of 

title 49, United States Code; and 

(2) submit a final report to the Committee on Commerce, 

Science, and Transportation of the Senate and the Committee 


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on Transportation and Infrastructure of the House of Representatives that contains the results of the pilot projects carried out 

under this section, including the matters described in paragraph (1). 

(d) PAPERLESS HAZARD COMMUNICATIONS SYSTEM DEFINED.— In this section, the term ‘‘paperless hazard communications system’’ 

means the use of advanced communications methods, such as wireless communications devices, to convey hazard information between 

all parties in the transportation chain, including emergency responders and law enforcement personnel. The format of communication may be equivalent to that used by the carrier. 

SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND REPORTING. 

(a) ASSESSMENT.— (1) IN GENERAL.—Not later than 6 months after the date of 

enactment of this Act, the Secretary, in consultation with the 

Commandant of the United States Coast Guard, as appropriate, 

shall conduct an assessment to improve the collection, analysis, 

reporting, and use of data related to accidents and incidents involving the transportation of hazardous material. 

(2) REVIEW.—The assessment conducted under this subsection shall review the methods used by the Pipeline and Hazardous Materials Safety Administration (referred to in this section as the ‘‘Administration’’) for collecting, analyzing, and reporting accidents and incidents involving the transportation of 

hazardous material, including the adequacy of— 

(A) information requested on the accident and incident 

reporting forms required to be submitted to the Administration; 

(B) methods used by the Administration to verify that 

the information provided on such forms is accurate and 

complete; 

(C) accident and incident reporting requirements, including whether such requirements should be expanded to 

include shippers and consignees of hazardous materials; 

(D) resources of the Administration related to data collection, analysis, and reporting, including staff and information technology; and 

(E) the database used by the Administration for recording and reporting such accidents and incidents, including 

the ability of users to adequately search the database and 

find information. 

(b) DEVELOPMENT OF ACTION PLAN.—Not later than 9 months 

after the date of enactment of this Act, the Secretary shall develop 

an action plan and timeline for improving the collection, analysis, 

reporting, and use of data by the Administration, including revising 

the database of the Administration, as appropriate. 

(c) SUBMISSION TO CONGRESS.—Not later than 15 days after the 

completion of the action plan and timeline under subsection (c), the 

Secretary shall submit the action plan and timeline to the Committee on Commerce, Science, and Transportation of the Senate and 

the Committee on Transportation and Infrastructure of the House of 

Representatives. 

(d) REPORTING REQUIREMENTS.—Section 5125(b)(1)(D) is 

amended by inserting ‘‘and other written hazardous materials 


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transportation incident reporting involving State or local emergency 

responders in the initial response to the incident’’ before the period 

at the end. 

SEC. 33007. HAZARDOUS MATERIAL TECHNICAL ASSESSMENT, RESEARCH AND DEVELOPMENT, AND ANALYSIS PROGRAM. 

(a) IN GENERAL.—Chapter 51 is amended by inserting after section 5117 the following: 

‘‘§ 5118. Hazardous material technical assessment, research 

and development, and analysis program 

‘‘(a) RISK REDUCTION.— 

‘‘(1) PROGRAM AUTHORIZED.—The Secretary of Transportation may develop and implement a hazardous material technical assessment, research and development, and analysis program for the purpose of— 

‘‘(A) reducing the risks associated with the transportation of hazardous material; and 

‘‘(B) identifying and evaluating new technologies to facilitate the safe, secure, and efficient transportation of hazardous material. 

‘‘(2) COORDINATION.—In developing the program under 

paragraph (1), the Secretary shall— 

‘‘(A) utilize information gathered from other modal administrations with similar programs; and 

‘‘(B) coordinate with other modal administrations, as 

appropriate. 

‘‘(b) COOPERATION.—In carrying out subsection (a), the Secretary shall work cooperatively with regulated and other entities, including shippers, carriers, emergency responders, State and local officials, and academic institutions.’’. 

(b) CONFORMING AMENDMENT.—The chapter analysis for chapter 51 is amended by inserting after the item relating to section 

5117 the following: 

‘‘5118. Hazardous material technical assessment, research and development, and 

analysis program.’’. 

SEC. 33008. HAZARDOUS MATERIAL ENFORCEMENT TRAINING. 

(a) IN GENERAL.—Not later than 18 months after the date of enactment of this Act, the Secretary shall develop uniform performance standards for training hazardous material inspectors and investigators on— 

(1) how to collect, analyze, and publish findings from inspections and investigations of accidents or incidents involving 

the transportation of hazardous material; and 

(2) how to identify noncompliance with regulations issued 

under chapter 51 of title 49, United States Code, and take appropriate enforcement action. 

(b) STANDARDS AND GUIDELINES.—The Secretary may develop— 

(1) guidelines for hazardous material inspector and investigator qualifications; 

(2) best practices and standards for hazardous material inspector and investigator training programs; and 

(3) standard protocols to coordinate investigation efforts 

among Federal, State, and local jurisdictions on accidents or 

incidents involving the transportation of hazardous material. 


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(c) AVAILABILITY.—The standards, protocols, and guidelines established under this section— 

(1) shall be mandatory for— 

(A) the Department of Transportation’s multimodal 

personnel conducting hazardous material enforcement inspections or investigations; and 

(B) State employees who conduct federally funded compliance reviews, inspections, or investigations; and 

(2) shall be made available to Federal, State, and local 

hazardous material safety enforcement personnel. 

SEC. 33009. INSPECTIONS. 

(a) NOTICE OF ENFORCEMENT MEASURES.—Section 5121(c)(1) is 

amended— 

(1) in subparagraph (E), by striking ‘‘and’’ at the end; 

(2) in subparagraph (F), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(G) shall provide to the affected offeror, carrier, packaging manufacturer or tester, or other person responsible 

for the package reasonable notice of— 

‘‘(i) his or her decision to exercise his or her authority under paragraph (1); 

‘‘(ii) any findings made; and 

‘‘(iii) any actions being taken as a result of a finding of noncompliance.’’. 

(b) REGULATIONS.— 

(1) MATTERS TO BE ADDRESSED.—Section 5121(e) is amended by adding at the end the following: 

‘‘(3) MATTERS TO BE ADDRESSED.—The regulations issued 

under this subsection shall address— 

‘‘(A) the safe and expeditious resumption of transportation of perishable hazardous material, including radiopharmaceuticals and other medical products, that may require timely delivery due to life-threatening situations; 

‘‘(B) the means by which— 

‘‘(i) noncompliant packages that present an imminent hazard are placed out-of-service until the condition is corrected; and 

‘‘(ii) noncompliant packages that do not present a 

hazard are moved to their final destination; 

‘‘(C) appropriate training and equipment for inspectors; 

and 

‘‘(D) the proper closure of packaging in accordance with 

the hazardous material regulations.’’. 

(2) FINALIZING REGULATIONS.—In accordance with section 

5103(b)(2) of title 49, United States Code, not later than 1 year 

after the date of enactment of this Act, the Secretary shall take 

all actions necessary to finalize a regulation under paragraph 

(1) of this subsection. 

(c) GRANTS AND COOPERATIVE AGREEMENTS.—Section 

5121(g)(1) is amended by inserting ‘‘safety and’’ before ‘‘security’’. 

SEC. 33010. CIVIL PENALTIES. 

Section 5123 is amended— 

(1) in subsection (a)— 


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(A) in paragraph (1)— 

(i) by striking ‘‘at least $250 but’’; and 

(ii) by striking ‘‘$50,000’’ and inserting ‘‘$75,000’’; 

(B) in paragraph (2), by striking ‘‘$100,000’’ and inserting ‘‘$175,000’’; and 

(C) by amending paragraph (3) to read as follows: 

‘‘(3) If the violation is related to training, a person described in paragraph (1) shall be liable for a civil penalty of at 

least $450.’’; and 

(2) by adding at the end the following: 

‘‘(h) PENALTY FOR OBSTRUCTION OF INSPECTIONS AND INVESTIGATIONS.— 

‘‘(1) The Secretary may impose a penalty on a person who 

obstructs or prevents the Secretary from carrying out inspections or investigations under subsection (c) or (i) of section 

5121. 

‘‘(2) For the purposes of this subsection, the term ‘obstructs’ 

means actions that were known, or reasonably should have been 

known, to prevent, hinder, or impede an investigation. 

‘‘(i) PROHIBITION ON HAZARDOUS MATERIAL OPERATIONS AFTER

NONPAYMENT OF PENALTIES.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph (2), 

a person subject to the jurisdiction of the Secretary under this 

chapter who fails to pay a civil penalty assessed under this 

chapter, or fails to arrange and abide by an acceptable payment 

plan for such civil penalty, may not conduct any activity regulated under this chapter beginning on the 91st day after the 

date specified by order of the Secretary for payment of such penalty unless the person has filed a formal administrative or judicial appeal of the penalty. 

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to any person who is unable to pay a civil penalty because such person 

is a debtor in a case under chapter 11 of title 11. 

‘‘(3) RULEMAKING.—Not later than 2 years after the date of 

enactment of this subsection, the Secretary, after providing notice and an opportunity for public comment, shall issue regulations that— 

‘‘(A) set forth procedures to require a person who is delinquent in paying civil penalties to cease any activity regulated under this chapter until payment has been made or 

an acceptable payment plan has been arranged; and 

‘‘(B) ensures that the person described in subparagraph 

(A)— 

‘‘(i) is notified in writing; and 

‘‘(ii) is given an opportunity to respond before the 

person is required to cease the activity.’’. 

SEC. 33011. REPORTING OF FEES. 

Section 5125(f)(2) is amended by striking ‘‘, upon the Secretary’s 

request,’’ and inserting ‘‘biennially’’. 

SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS. 

(a) RULEMAKING.—Not later than 2 years after the date of enactment of this Act, the Secretary, after providing notice and an opportunity for public comment, shall issue regulations that establish— 


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(1) standard operating procedures to support administration of the special permit and approval programs; and 

(2) objective criteria to support the evaluation of special 

permit and approval applications. 

(b) REVIEW OF SPECIAL PERMITS.— 

(1) REVIEW.—Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a review and analysis of special permits that have been in continuous effect for a 

10-year period to determine which special permits may be converted into the hazardous materials regulations. 

(2) FACTORS.—In conducting the review and analysis under 

paragraph (1), the Secretary may consider— 

(A) the safety record for hazardous materials transported under the special permit; 

(B) the application of a special permit; 

(C) the suitability of provisions in the special permit 

for incorporation into the hazardous materials regulations; 

and 

(D) rulemaking activity in related areas. 

(3) RULEMAKING.—After completing the review and analysis 

under paragraph (1), but not later than 3 years after the date 

of enactment of this Act, and after providing notice and opportunity for public comment, the Secretary shall issue regulations 

to incorporate into the hazardous materials regulations any special permits identified in the review under paragraph (1) that 

the Secretary determines are appropriate for incorporation, 

based on the factors identified in paragraph (2). 

(c) INCORPORATION INTO REGULATION.—Section 5117 is amended by adding at the end the following: 

‘‘(f) INCORPORATION INTO REGULATIONS.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date on 

which a special permit has been in continuous effect for a 10- 

year period, the Secretary shall conduct a review and analysis 

of that special permit to determine whether it may be converted 

into the hazardous materials regulations. 

‘‘(2) FACTORS.—In conducting the review and analysis 

under paragraph (1), the Secretary may consider— 

‘‘(A) the safety record for hazardous materials transported under the special permit; 

‘‘(B) the application of a special permit; 

‘‘(C) the suitability of provisions in the special permit 

for incorporation into the hazardous materials regulations; 

and 

‘‘(D) rulemaking activity in related areas. 

‘‘(3) RULEMAKING.—After completing the review and analysis under paragraph (1) and after providing notice and opportunity for public comment, the Secretary shall either institute a 

rulemaking to incorporate the special permit into the hazardous 

materials regulations or publish in the Federal Register the 

Secretary’s justification for why the special permit is not appropriate for incorporation into the regulations.’’. 

SEC. 33013. HIGHWAY ROUTING DISCLOSURES. 

(a) LIST OF ROUTE DESIGNATIONS.—Section 5112(c) is amended— 


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(1) by striking ‘‘In coordination’’ and inserting the following: 

‘‘(1) IN GENERAL.—In coordination’’; and 

(2) by adding at the end the following: 

‘‘(2) STATE RESPONSIBILITIES.— ‘‘(A) IN GENERAL.—Each State shall submit to the Secretary, in a form and manner to be determined by the Secretary and in accordance with subparagraph (B)— 

‘‘(i) the name of the State agency responsible for 

hazardous material highway route designations; and 

‘‘(ii) a list of the State’s currently effective hazardous material highway route designations. 

‘‘(B) FREQUENCY.—Each State shall submit the information described in subparagraph (A)(ii)— 

‘‘(i) at least once every 2 years; and 

‘‘(ii) not later than 60 days after a hazardous material highway route designation is established, amended, or discontinued.’’. 

(b) COMPLIANCE WITH SECTION 5112.—Section 5125(c)(1) is 

amended by inserting ‘‘, and is published in the Department’s hazardous materials route registry under section 5112(c)’’ before the period at the end. 

SEC. 33014. MOTOR CARRIER SAFETY PERMITS. 

(a) REVIEW.—Not later than 1 year after the date of enactment 

of this Act, the Secretary shall conduct a study of, and transmit to 

the Committee on Commerce, Science, and Transportation of the 

Senate and the Committee on Transportation and Infrastructure of 

the House of Representatives a report on, the implementation of the 

hazardous material safety permit program under section 5109 of 

title 49, United States Code. In conducting the study, the Secretary 

shall review, at a minimum— 

(1) the list of hazardous materials requiring a safety permit; 

(2) the number of permits that have been issued, denied, revoked, or suspended since inception of the program and the 

number of commercial motor carriers that have never had a 

permit denied, revoked, or suspended since inception of the program; 

(3) the reasons for such denials, revocations, or suspensions; 

(4) the criteria used by the Federal Motor Carrier Safety 

Administration to determine whether a hazardous material 

safety permit issued by a State is equivalent to the Federal permit; and 

(5) actions the Secretary could implement to improve the 

program, including whether to provide opportunities for an additional level of fitness review prior to the denial, revocation, or 

suspension of a safety permit. 

(b) ACTIONS TAKEN.—Not later than 2 years after the date of 

enactment of this Act, based on the study conducted under subsection (a), the Secretary shall either institute a rulemaking to make 

any necessary improvements to the hazardous materials safety permit program under section 5109 of title 49, United States Code or 

publish in the Federal Register the Secretary’s justification for why 

a rulemaking is not necessary. 


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SEC. 33015. WETLINES. 

(a) EVALUATION.—Not later than 1 year after the date of enactment of this Act, the United States Government Accountability Office shall evaluate, and transmit to the Committee on Commerce, 

Science, and Transportation of the Senate and the Committee on 

Transportation and Infrastructure of the House of Representatives, 

a report on the safety of transporting flammable liquids in the external product piping of cargo tank motor vehicles (commonly referred 

to as wetlines). The evaluation shall— 

(1) review the safety of transporting flammable liquids in 

the external product piping of cargo tank motor vehicles; 

(2) accurately quantify the number of incidents involving 

the transportation of flammable liquids in external product piping of cargo tank motor vehicles; 

(3) identify various alternatives to loading, transporting, 

and unloading flammable liquids in such piping; 

(4) examine the costs and benefits of each alternative; and 

(5) identify any obstacles to implementing each alternative. 

(b) REGULATIONS.—The Secretary may not issue a final rule regarding transporting flammable liquids in the external product piping of cargo tank motor vehicles prior to completion of the evaluation conducted under subsection (a), or 2 years after the date of enactment of this Act, whichever is earlier, unless the Secretary determines that a risk to public safety, property, or the environment is 

present or an imminent hazard (as defined in section 5102 of title 

49, United States Code) exists and that the regulations will address 

the risk or hazard. 

SEC. 33016. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND 

GRANTS. 

Section 5107(e)(2) is amended— 

(1) by inserting ‘‘through a competitive process’’ between 

‘‘made’’ and ‘‘to’’; and 

(2) by striking ‘‘hazmat employee’’. 

SEC. 33017. AUTHORIZATION OF APPROPRIATIONS. 

Section 5128 is amended to read as follows: 

‘‘§ 5128. Authorization of appropriations 

‘‘(a) IN GENERAL.—There are authorized to be appropriated to 

the Secretary to carry out this chapter (except sections 5107(e), 

5108(g)(2), 5113, 5115, 5116, and 5119)— 

‘‘(1) $42,338,000 for fiscal year 2013; and 

‘‘(2) $42,762,000 for fiscal year 2014. 

‘‘(b) HAZARDOUS MATERIALS EMERGENCY PREPAREDNESS

FUND.—From the Hazardous Materials Emergency Preparedness 

Fund established under section 5116(i), the Secretary may expend, 

during each of fiscal years 2013 and 2014— 

‘‘(1) $188,000 to carry out section 5115; 

‘‘(2) $21,800,000 to carry out subsections (a) and (b) of section 5116, of which not less than $13,650,000 shall be available 

to carry out section 5116(b); 

‘‘(3) $150,000 to carry out section 5116(f); 

‘‘(4) $625,000 to publish and distribute the Emergency Response Guidebook under section 5116(i)(3); and 

‘‘(5) $1,000,000 to carry out section 5116(j). 


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‘‘(c) HAZARDOUS MATERIALS TRAINING GRANTS.—From the Hazardous Materials Emergency Preparedness Fund established pursuant to section 5116(i), the Secretary may expend $4,000,000 for each 

of the fiscal years 2013 and 2014 to carry out section 5107(e). 

‘‘(d) CREDITS TO APPROPRIATIONS.— ‘‘(1) EXPENSES.—In addition to amounts otherwise made 

available to carry out this chapter, the Secretary may credit 

amounts received from a State, Indian tribe, or other public authority or private entity for expenses the Secretary incurs in providing training to the State, authority, or entity. 

‘‘(2) AVAILABILITY OF AMOUNTS.—Amounts made available 

under this section shall remain available until expended.’’. 

TITLE IV—SPORT FISH RESTORATION 

AND RECREATIONAL BOATING SAFETY ACT OF 2012 

SEC. 34001. SHORT TITLE. 

This title may be cited as the ‘‘Sport Fish Restoration and Recreational Boating Safety Act of 2012’’. 

SEC. 34002. AMENDMENT OF FEDERAL AID IN SPORT FISH RESTORATION ACT. 

Section 4 of the Federal Aid in Fish Restoration Act (16 U.S.C. 

777c) is amended— 

(1) in subsection (a), by striking ‘‘of fiscal years 2006 

through 2011 and for the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘fiscal year 

through 2014,’’; and 

(2) in subsection (b)(1)(A), by striking ‘‘of fiscal years 2006 

through 2011 and for the period beginning on October 1, 2011, 

and ending on March 31, 2012,’’ and inserting ‘‘fiscal year 

through 2014,’’. 

TITLE V—MISCELLANEOUS 

SEC. 35001. OVERFLIGHTS IN GRAND CANYON NATIONAL PARK. 

(a) DETERMINATIONS WITH RESPECT TO SUBSTANTIAL RESTORA- TION OF NATURAL QUIET AND EXPERIENCE.— (1) IN GENERAL.—Notwithstanding any other provision of 

law, for purposes of section 3(b)(1) of Public Law 100–91 (16 

U.S.C. 1a–1 note), the substantial restoration of the natural 

quiet and experience of the Grand Canyon National Park (in 

this section referred to as the ‘‘Park’’) shall be considered to be 

achieved in the Park if, for at least 75 percent of each day, 50 

percent of the Park is free of sound produced by commercial air 

tour operations that have an allocation to conduct commercial 

air tours in the Park as of the date of enactment of this Act. 

(2) CONSIDERATIONS.— 

(A) IN GENERAL.—For purposes of determining whether 

substantial restoration of the natural quiet and experience 

of the Park has been achieved in accordance with paragraph (1), the Secretary of the Interior (in this section referred to as the ‘‘Secretary’’) shall use— 


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(i) the 2-zone system for the Park in effect on the 

date of enactment of this Act to assess impacts relating 

to substantial restoration of natural quiet at the Park, 

including— 

(I) the thresholds for noticeability and audibility; and 

(II) the distribution of land between the 2 

zones; and 

(ii) noise modeling science that is— 

(I) developed for use at the Park, specifically 

Integrated Noise Model Version 6.2; 

(II) validated by reasonable standards for conducting field observations of model results; and 

(III) accepted and validated by the Federal 

Interagency Committee on Aviation Noise. 

(B) SOUND FROM OTHER SOURCES.—The Secretary 

shall not consider sound produced by sources other than 

commercial air tour operations, including sound emitted by 

other types of aircraft operations or other noise sources, for 

purposes of— 

(i) making recommendations, developing a final 

plan, or issuing regulations relating to commercial air 

tour operations in the Park; or 

(ii) determining under paragraph (1) whether substantial restoration of the natural quiet and experience 

of the Park has been achieved. 

(3) CONTINUED MONITORING.—The Secretary shall continue 

monitoring noise from aircraft operating over the Park below 

17,999 feet MSL to ensure continued compliance with the substantial restoration of natural quiet and experience of the Park. 

(4) DAY DEFINED.—For purposes of this section, the term 

‘‘day’’ means the hours between 7:00 a.m. and 7:00 p.m. 

(b) CONVERSION TO QUIET TECHNOLOGY AIRCRAFT.— 

(1) IN GENERAL.—Not later than 15 years after the date of 

enactment of this Act, all commercial air tour aircraft operating 

in the Grand Canyon National Park Special Flight Rules Area 

shall be required to fully convert to quiet aircraft technology (as 

determined in accordance with regulations in effect on the day 

before the date of enactment of this Act). 

(2) CONVERSION INCENTIVES.—Not later than 60 days after 

the date of enactment of this Act, the Secretary and the Administrator of the Federal Aviation Administration shall provide 

incentives for commercial air tour operators that convert to 

quiet aircraft technology (as determined in accordance with the 

regulations in effect on the day before the date of enactment of 

this Act) before the date specified in paragraph (1), such as increasing the flight allocations for such operators on a net basis 

consistent with section 804(c) of the National Park Air Tours 

Management Act of 2000 (title VIII of Public Law 106–181), 

provided that the cumulative impact of such operations does not 

increase noise at Grand Canyon National Park. 

SEC. 35002. COMMERCIAL AIR TOUR OPERATIONS. 

Section 40128(b)(1)(C) of title 49, United States Code, is amended to read as follows: 


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‘‘(C) EXCEPTION.—An application to begin or expand 

commercial air tour operations at Crater Lake National 

Park or Great Smoky Mountains National Park may be denied without the establishment of an air tour management 

plan by the Director of the National Park Service if the Director determines that such operations would adversely affect park resources or visitor experiences.’’. 

SEC. 35003. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS. 

Section 40125 of title 49, United States Code, is amended by 

adding at the end the following: 

‘‘(d) SEARCH AND RESCUE PURPOSES.—An aircraft described in 

section 40102(a)(41)(D) that is not exclusively leased for at least 90 

continuous days by the government of a State, the District of Columbia, or a territory or possession of the United States or a political 

subdivision of 1 of those governments, qualifies as a public aircraft 

if the Administrator determines that— 

‘‘(1) there are extraordinary circumstances; 

‘‘(2) the aircraft will be used for the performance of search 

and rescue missions; 

‘‘(3) a community would not otherwise have access to search 

and rescue services; and 

‘‘(4) a government entity demonstrates that granting the 

waiver is necessary to prevent an undue economic burden on 

that government.’’. 

DIVISION D—FINANCE 

SEC. 40001. SHORT TITLE. 

This division may be cited as the ‘‘Highway Investment, Job 

Creation, and Economic Growth Act of 2012’’. 

TITLE I—EXTENSION OF HIGHWAY 

TRUST FUND EXPENDITURE AUTHORITY AND RELATED TAXES 

SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY. 

(a) HIGHWAY TRUST FUND.—Section 9503 of the Internal Revenue Code of 1986 is amended— 

(1) by striking ‘‘July 1, 2012’’ in subsections (b)(6)(B), (c)(1), 

and (e)(3) and inserting ‘‘October 1, 2014’’, and 

(2) by striking ‘‘Surface Transportation Extension Act of 

2012’’ in subsections (c)(1) and (e)(3) and inserting ‘‘MAP-21’’. 

(b) SPORT FISH RESTORATION AND BOATING TRUST FUND.—Section 9504 of the Internal Revenue Code of 1986 is amended— 

(1) by striking ‘‘Surface Transportation Extension Act of 

2012’’ each place it appears in subsection (b)(2) and inserting 

‘‘MAP-21’’, and 

(2) by striking ‘‘July 1, 2012’’ in subsection (d)(2) and inserting ‘‘October 1, 2014’’. 

(c) LEAKING UNDERGROUND STORAGE TANK TRUST FUND.— 

Paragraph (2) of section 9508(e) of the Internal Revenue Code of 


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1986 is amended by striking ‘‘July 1, 2012’’ and inserting ‘‘October 

1, 2014’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on July 1, 2012. 

SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES. 

(a) IN GENERAL.— 

(1) Each of the following provisions of the Internal Revenue 

Code of 1986 is amended by striking ‘‘June 30, 2012’’ and inserting ‘‘September 30, 2016’’: 

(A) Section 4041(a)(1)(C)(iii)(I). 

(B) Section 4041(m)(1)(B). 

(C) Section 4081(d)(1). 

(2) Each of the following provisions of such Code is amended by striking ‘‘July 1, 2012’’ and inserting ‘‘October 1, 2016’’: 

(A) Section 4041(m)(1)(A). 

(B) Section 4051(c). 

(C) Section 4071(d). 

(D) Section 4081(d)(3). 

(b) EXTENSION OF TAX, ETC., ON USE OF CERTAIN HEAVY VEHICLES.— 

(1) IN GENERAL.—Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking ‘‘2013’’ 

each place it appears and inserting ‘‘2017’’: 

(A) Section 4481(f). 

(B) Section 4482(d). 

(2) EXTENSION AND TECHNICAL CORRECTION.— 

(A) IN GENERAL.—Paragraph (4) of section 4482(c) of 

such Code is amended to read as follows: 

‘‘(4) TAXABLE PERIOD.—The term ‘taxable period’ means any 

year beginning before July 1, 2017, and the period which begins 

on July 1, 2017, and ends at the close of September 30, 2017.’’. 

(B) EFFECTIVE DATE.—The amendment made by this 

paragraph shall take effect as if included in the amendments made by section 142 of the Surface Transportation 

Extension Act of 2011, Part II. 

(c) FLOOR STOCKS REFUNDS.—Section 6412(a)(1) of the Internal 

Revenue Code of 1986 is amended— 

(1) by striking ‘‘July 1, 2012’’ each place it appears and inserting ‘‘October 1, 2016’’, 

(2) by striking ‘‘December 31, 2012’’ each place it appears 

and inserting ‘‘March 31, 2017’’, and 

(3) by striking ‘‘October 1, 2012’’ and inserting ‘‘January 1, 

2017’’. 

(d) EXTENSION OF CERTAIN EXEMPTIONS.— 

(1) Section 4221(a) of the Internal Revenue Code of 1986 is 

amended by striking ‘‘July 1, 2012’’ and inserting ‘‘October 1, 

2016’’. 

(2) Section 4483(i) of such Code is amended by striking 

‘‘July 1, 2012’’ and inserting ‘‘October 1, 2017’’. 

(e) EXTENSION OF TRANSFERS OF CERTAIN TAXES.— 

(1) IN GENERAL.—Section 9503 of the Internal Revenue 

Code of 1986 is amended— 

(A) in subsection (b)— 


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(i) by striking ‘‘July 1, 2012’’ each place it appears 

in paragraphs (1) and (2) and inserting ‘‘October 1, 

2016’’, 

(ii) by striking ‘‘JULY 1, 2012’’ in the heading of 

paragraph (2) and inserting ‘‘OCTOBER 1, 2016’’, 

(iii) by striking ‘‘June 30, 2012’’ in paragraph (2) 

and inserting ‘‘September 30, 2016’’, and 

(iv) by striking ‘‘April 1, 2013’’ in paragraph (2) 

and inserting ‘‘July 1, 2017’’, and 

(B) in subsection (c)(2), by striking ‘‘April 1, 2013’’ and 

inserting ‘‘July 1, 2017’’. 

(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX TRANSFERS.— (A) IN GENERAL.—Paragraphs (3)(A)(i) and (4)(A) of 

section 9503(c) of such Code are each amended by striking 

‘‘July 1, 2012’’ and inserting ‘‘October 1, 2016’’. 

(B) CONFORMING AMENDMENTS TO LAND AND WATER

CONSERVATION FUND.—Section 201(b) of the Land and 

Water Conservation Fund Act of 1965 (16 U.S.C. 460l– 

11(b)) is amended— 

(i) by striking ‘‘July 1, 2013’’ each place it appears 

and inserting ‘‘October 1, 2017’’, and 

(ii) by striking ‘‘July 1, 2012’’ and inserting ‘‘October 1, 2016’’. 

(f) EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made by this section shall take effect on July 

1, 2012. 

TITLE II—REVENUE PROVISIONS 

Subtitle A—Leaking Underground Storage 

Tank Trust Fund 

SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE 

TANK TRUST FUND TO HIGHWAY TRUST FUND. 

(a) IN GENERAL.—Subsection (c) of section 9508 of the Internal 

Revenue Code of 1986 is amended— 

(1) by striking ‘‘Amounts’’ and inserting: 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

amounts’’, and 

(2) by adding at the end the following new paragraph: 

‘‘(2) TRANSFER TO HIGHWAY TRUST FUND.—Out of amounts 

in the Leaking Underground Storage Tank Trust Fund there is 

hereby appropriated $2,400,000,000 to be transferred under section 9503(f)(3) to the Highway Account (as defined in section 

9503(e)(5)(B)) in the Highway Trust Fund.’’. 

(b) TRANSFER TO HIGHWAY TRUST FUND.— 

(1) IN GENERAL.—Subsection (f) of section 9503 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (2) the following new paragraph: 

‘‘(3) INCREASE IN FUND BALANCE.—There is hereby transferred to the Highway Account (as defined in subsection 

(e)(5)(B)) in the Highway Trust Fund amounts appropriated 

from the Leaking Underground Storage Tank Trust Fund 

under section 9508(c)(2).’’. 


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(2) CONFORMING AMENDMENTS.—Paragraph (4) of section 

9503(f) of such Code is amended— 

(A) by inserting ‘‘or transferred’’ after ‘‘appropriated’’, 

and 

(B) by striking ‘‘APPROPRIATED’’ in the heading thereof. 

Subtitle B—Pension Provisions 

PART I—PENSION FUNDING STABILIZATION 

SEC. 40211. PENSION FUNDING STABILIZATION. 

(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.— 

(1) IN GENERAL.—Subparagraph (C) of section 430(h)(2) of 

the Internal Revenue Code of 1986 is amended by adding at the 

end the following new clause: 

‘‘(iv) SEGMENT RATE STABILIZATION.— 

‘‘(I) IN GENERAL.—If a segment rate described 

in clause (i), (ii), or (iii) with respect to any applicable month (determined without regard to this 

clause) is less than the applicable minimum percentage, or more than the applicable maximum 

percentage, of the average of the segment rates described in such clause for years in the 25-year period ending with September 30 of the calendar 

year preceding the calendar year in which the plan 

year begins, then the segment rate described in 

such clause with respect to the applicable month 

shall be equal to the applicable minimum percentage or the applicable maximum percentage of such 

average, whichever is closest. The Secretary shall 

determine such average on an annual basis and 

may prescribe equivalent rates for years in any 

such 25-year period for which the rates described 

in any such clause are not available. 

‘‘(II) APPLICABLE MINIMUM PERCENTAGE; APPLICABLE MAXIMUM PERCENTAGE.—For purposes of 

subclause (I), the applicable minimum percentage 

and the applicable maximum percentage for a plan 

year beginning in a calendar year shall be determined in accordance with the following table: 

‘‘If the calendar year is: 

The applicable 

minimum percentage is: 

The applicable 

maximum percentage is: 

2012 .................................................................................................. 90% 110 % 

2013 .................................................................................................. 85% 115 % 

2014 .................................................................................................. 80% 120 % 

2015 .................................................................................................. 75% 125 % 

After 2015 ........................................................................................ 70% 130 %.’’. 

(2) CONFORMING AMENDMENTS.— 

(A) Paragraph (6) of section 404(o) of such Code is 

amended by inserting ‘‘(determined by not taking into account any adjustment under clause (iv) of subsection 

(h)(2)(C) thereof)’’ before the period. 


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(B) Subparagraph (F) of section 430(h)(2) of such Code 

is amended by inserting ‘‘and the averages determined 

under subparagraph (C)(iv)’’ after ‘‘subparagraph (C)’’. 

(C) Subparagraphs (C) and (D) of section 417(e)(3) of 

such Code are each amended by striking ‘‘section 

430(h)(2)(C)’’ and inserting ‘‘section 430(h)(2)(C) (determined by not taking into account any adjustment under 

clause (iv) thereof)’’. 

(D) Section 420 of such Code is amended by adding at 

the end the following new subsection: 

‘‘(g) SEGMENT RATES DETERMINED WITHOUT PENSION STABILIZATION.—For purposes of this section, section 430 shall be applied without regard to subsection (h)(2)(C)(iv) thereof.’’. 

(b) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY

ACT OF 1974.— 

(1) IN GENERAL.—Subparagraph (C) of section 303(h)(2) of 

the Employee Retirement Income Security Act of 1974 (29 

U.S.C. 1083(h)(2)) is amended by adding at the end the following new clause: 

‘‘(iv) SEGMENT RATE STABILIZATION.— 

‘‘(I) IN GENERAL.—If a segment rate described 

in clause (i), (ii), or (iii) with respect to any applicable month (determined without regard to this 

clause) is less than the applicable minimum percentage, or more than the applicable maximum 

percentage, of the average of the segment rates described in such clause for years in the 25-year period ending with September 30 of the calendar 

year preceding the calendar year in which the plan 

year begins, then the segment rate described in 

such clause with respect to the applicable month 

shall be equal to the applicable minimum percentage or the applicable maximum percentage of such 

average, whichever is closest. The Secretary of the 

Treasury shall determine such average on an annual basis and may prescribe equivalent rates for 

years in any such 25-year period for which the 

rates described in any such clause are not available. 

‘‘(II) APPLICABLE MINIMUM PERCENTAGE; APPLICABLE MAXIMUM PERCENTAGE.—For purposes of 

subclause (I), the applicable minimum percentage 

and the applicable maximum percentage for a plan 

year beginning in a calendar year shall be determined in accordance with the following table: 

‘‘If the calendar year is: 

The applicable 

minimum percentage is: 

The applicable 

maximum percentage is: 

2012 .................................................................................................. 90% 110 % 

2013 .................................................................................................. 85% 115 % 

2014 .................................................................................................. 80% 120 % 

2015 .................................................................................................. 75% 125 % 

After 2015 ........................................................................................ 70% 130 %.’’. 


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(2) DISCLOSURE OF EFFECT OF SEGMENT RATE STABILIZA- TION ON PLAN FUNDING.— (A) IN GENERAL.—Paragraph (2) of section 101(f) of 

such Act (29 U.S.C. 1021(f)) is amended by adding at the 

end the following new subparagraph: 

‘‘(D) EFFECT OF SEGMENT RATE STABILIZATION ON PLAN

FUNDING.— 

‘‘(i) IN GENERAL.—In the case of a single-employer 

plan for an applicable plan year, each notice under 

paragraph (1) shall include— 

‘‘(I) a statement that the MAP-21 modified the 

method for determining the interest rates used to 

determine the actuarial value of benefits earned 

under the plan, providing for a 25-year average of 

interest rates to be taken into account in addition 

to a 2-year average, 

‘‘(II) a statement that, as a result of the MAP21, the plan sponsor may contribute less money to 

the plan when interest rates are at historical lows, 

and 

‘‘(III) a table which shows (determined both 

with and without regard to section 

303(h)(2)(C)(iv)) the funding target attainment percentage (as defined in section 303(d)(2)), the funding shortfall (as defined in section 303(c)(4)), and 

the minimum required contribution (as determined 

under section 303), for the applicable plan year 

and each of the 2 preceding plan years. 

‘‘(ii) APPLICABLE PLAN YEAR.—For purposes of this 

subparagraph, the term ‘applicable plan year’ means 

any plan year beginning after December 31, 2011, and 

before January 1, 2015, for which— 

‘‘(I) the funding target (as defined in section 

303(d)(2)) is less than 95 percent of such funding 

target determined without regard to section 

303(h)(2)(C)(iv), 

‘‘(II) the plan has a funding shortfall (as defined in section 303(c)(4) and determined without 

regard to section 303(h)(2)(C)(iv)) greater than 

$500,000, and 

‘‘(III) the plan had 50 or more participants on 

any day during the preceding plan year. 

For purposes of any determination under subclause 

(III), the aggregation rule under the last sentence of 

section 303(g)(2)(B) shall apply. 

‘‘(iii) SPECIAL RULE FOR PLAN YEARS BEGINNING

BEFORE 2012.—In the case of a preceding plan year referred to in clause (i)(III) which begins before January 

1, 2012, the information described in such clause shall 

be provided only without regard to section 

303(h)(2)(C)(iv).’’. 

(B) MODEL NOTICE.—The Secretary of Labor shall 

modify the model notice required to be published under section 501(c) of the Pension Protection Act of 2006 to prominently include the information described in section 


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101(f)(2)(D) of the Employee Retirement Income Security 

Act of 1974, as added by this paragraph. 

(3) CONFORMING AMENDMENTS.— (A) Subparagraph (F) of section 303(h)(2) of such Act 

(29 U.S.C. 1083(h)(2)) is amended by inserting ‘‘and the 

averages determined under subparagraph (C)(iv)’’ after 

‘‘subparagraph (C)’’. 

(B) Clauses (ii) and (iii) of section 205(g)(3)(B) of such 

Act (29 U.S.C. 1055(g)(3)(B)) are each amended by striking 

‘‘section 303(h)(2)(C)’’ and inserting ‘‘section 303(h)(2)(C) 

(determined by not taking into account any adjustment 

under clause (iv) thereof)’’. 

(C) Clause (iv) of section 4006(a)(3)(E) of such Act (29 

U.S.C. 1306(a)(3)(E)) is amended by striking ‘‘section 

303(h)(2)(C)’’ and inserting ‘‘section 303(h)(2)(C) (notwithstanding any regulations issued by the corporation, determined by not taking into account any adjustment under 

clause (iv) thereof)’’. 

(D) Section 4010(d) of such Act (29 U.S.C. 1310(d)) is 

amended by adding at the end the following: 

‘‘(3) PENSION STABILIZATION DISREGARDED.—For purposes 

of this section, the segment rates used in determining the funding target and funding target attainment percentage shall be 

determined by not taking into account any adjustment under 

section 302(h)((2)(C)(iv).’’. 

(c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section 

shall apply with respect to plan years beginning after December 

31, 2011. 

(2) RULES WITH RESPECT TO ELECTIONS.— 

(A) ADJUSTED FUNDING TARGET ATTAINMENT PERCENTAGE.—A plan sponsor may elect not to have the amendments made by this section apply to any plan year beginning before January 1, 2013, either (as specified in the election)— 

(i) for all purposes for which such amendments 

apply, or 

(ii) solely for purposes of determining the adjusted 

funding target attainment percentage under sections 

436 of the Internal Revenue Code of 1986 and 206(g) 

of the Employee Retirement Income Security Act of 

1974 for such plan year. 

A plan shall not be treated as failing to meet the requirements of sections 204(g) of such Act and 411(d)(6) of such 

Code solely by reason of an election under this paragraph. 

(B) OPT OUT OF EXISTING ELECTIONS.—If, on the date 

of the enactment of this Act, an election is in effect with respect to any plan under sections 303(h)((2)(D)(ii) of the Employee Retirement Income Security Act of 1974 and 

430(h)((2)(D)(ii) of the Internal Revenue Code of 1986, then, 

notwithstanding the last sentence of each such section, the 

plan sponsor may revoke such election without the consent 

of the Secretary of the Treasury. The plan sponsor may 

make such revocation at any time before the date which is 

1 year after such date of enactment and such revocation 


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shall be effective for the 1st plan year to which the amendments made by this section apply and all subsequent plan 

years. Nothing in this subparagraph shall preclude a plan 

sponsor from making a subsequent election in accordance 

with such sections. 

PART II—PBGC PREMIUMS 

SEC. 40221. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES. 

(a) FLAT-RATE PREMIUM.— (1) IN GENERAL.—Clause (i) of section 4006(a)(3)(A) of the 

Employee Retirement Income Security Act of 1974 (29 U.S.C. 

1306(a)(3)(A)) is amended to read as follows: 

‘‘(i) in the case of a single-employer plan, an amount for 

each individual who is a participant in such plan during the 

plan year equal to the sum of the additional premium (if any) 

determined under subparagraph (E) and— 

‘‘(I) for plan years beginning after December 31, 2005, and before January 1, 2013, $30; 

‘‘(II) for plan years beginning after December 31, 2012, and before January 1, 2014, $42; and 

‘‘(III) for plan years beginning after December 31, 2013, $49.’’. 

(2) ADJUSTMENT FOR INFLATION.—Subparagraph (F) of section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended— 

(A) in clause (i)(II), by inserting ‘‘(2012 in the case of 

plan years beginning after calendar year 2014)’’ after 

‘‘2004’’; and 

(B) by adding at the end the following new sentence: 

‘‘This subparagraph shall not apply to plan years beginning in 2013 or 2014.’’. 

(b) VARIABLE-RATE PREMIUM.— (1) IN GENERAL.—Subparagraph (E)(ii) of section 4006(a)(3) 

of the Employee Retirement Income Security Act of 1974 (29 

U.S.C. 1306(a)(3)) is amended by striking ‘‘$9.00’’ and inserting 

‘‘the applicable dollar amount under paragraph (8)’’. 

(2) APPLICABLE DOLLAR AMOUNT.—Section 4006(a) of such 

Act (29 U.S.C. 1306(a)) is amended by adding at the end the 

following: 

‘‘(8) APPLICABLE DOLLAR AMOUNT FOR VARIABLE RATE PREMIUM.—For purposes of paragraph (3)(E)(ii)— 

‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), the applicable dollar amount shall be— 

‘‘(i) $9 for plan years beginning in a calendar year 

before 2015; 

‘‘(ii) for plan years beginning in calendar year 

2015, the amount in effect for plan years beginning in 

2014 (determined after application of subparagraph 

(C)); and 

‘‘(iii) for plan years beginning after calendar year 

2015, the amount in effect for plan years beginning in 

2015 (determined after application of subparagraph 

(C)). 

‘‘(B) ADJUSTMENT FOR INFLATION.—For each plan year 

beginning in a calendar year after 2012, there shall be subVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00461 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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stituted for the applicable dollar amount specified under 

subparagraph (A) an amount equal to the greater of— 

‘‘(i) the product derived by multiplying such applicable dollar amount for plan years beginning in that 

calendar year by the ratio of— 

‘‘(I) the national average wage index (as defined in section 209(k)(1) of the Social Security 

Act) for the first of the 2 calendar years preceding 

the calendar year in which such plan year begins, 

to 

‘‘(II) the national average wage index (as so 

defined) for the base year; and 

‘‘(ii) such applicable dollar amount in effect for 

plan years beginning in the preceding calendar year. 

If the amount determined under this subparagraph is not 

a multiple of $1, such product shall be rounded to the nearest multiple of $1. 

‘‘(C) ADDITIONAL INCREASE IN 2014 AND 2015.—The applicable dollar amount determined under subparagraph (A) 

(after the application of subparagraph (B)) shall be increased— 

‘‘(i) in the case of plan years beginning in calendar 

year 2014, by $4; and 

‘‘(ii) in the case of plan years beginning in calendar year 2015, by $5. 

‘‘(D) BASE YEAR.—For purposes of subparagraph (B), 

the base year is— 

‘‘(i) 2010, in the case of plan years beginning in 

calendar year 2013 or 2014; 

‘‘(ii) 2012, in the case of plan years beginning in 

calendar year 2015; and 

‘‘(iii) 2013, in the case of plan years beginning 

after calendar year 2015.’’. 

(3) CAP.— 

(A) IN GENERAL.—Subparagraph (E)(i) of section 

4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended by 

striking ‘‘for any plan year shall be’’ and all that follows 

through the end and inserting the following ‘‘for any plan 

year— 

‘‘(I) shall be an amount equal to the amount determined 

under clause (ii) divided by the number of participants in such 

plan as of the close of the preceding plan year; and 

‘‘(II) in the case of plan years beginning in a calendar year 

after 2012, shall not exceed $400.’’. 

(B) ADJUSTMENT FOR INFLATION.—Paragraph (3) of 

section 4006(a) of such Act (29 U.S.C. 1306(a)(3)), as 

amended by this Act, is amended by adding at the end the 

following: 

‘‘(J) For each plan year beginning in a calendar year after 2013, 

there shall be substituted for the dollar amount specified in subclause (II) of subparagraph (E)(i) an amount equal to the greater 

of— 

‘‘(i) the product derived by multiplying such dollar amount 

by the ratio of— 


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‘‘(I) the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 

2 calendar years preceding the calendar year in which such 

plan year begins, to 

‘‘(II) the national average wage index (as so defined) 

for 2011; and 

‘‘(ii) such dollar amount for plan years beginning in the 

preceding calendar year. 

If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple 

of $1.’’. 

SEC. 40222. MULTIEMPLOYER ANNUAL PREMIUM RATES. 

(a) IN GENERAL.—Subparagraph (A) of section 4006(a)(3) of the 

Employee Retirement Income Security Act of 1974 (29 U.S.C. 

1306(a)(3)) is amended— 

(1) by inserting ‘‘and before January 1, 2013,’’ after ‘‘December 31, 2005,’’ in clause (iv), 

(2) by striking ‘‘or’’ at the end of clause (iii), 

(3) by striking the period at the end of clause (iv) and inserting ‘‘, or’’, and 

(4) by adding at the end the following new clause: 

‘‘(v) in the case of a multiemployer plan, for plan years beginning after December 31, 2012, $12.00 for each individual 

who is a participant in such plan during the applicable plan 

year.’’. 

(b) INFLATION ADJUSTMENT.—Paragraph (3) of section 4006(a) 

of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 

1306(a)(3)) is amended by adding at the end the following: 

‘‘(I) For each plan year beginning in a calendar year after 2013, 

there shall be substituted for the premium rate specified in clause 

(v) of subparagraph (A) an amount equal to the greater of— 

‘‘(i) the product derived by multiplying the premium rate 

specified in clause (v) of subparagraph (A) by the ratio of— 

‘‘(I) the national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the 

2 calendar years preceding the calendar year in which such 

plan year begins, to 

‘‘(II) the national average wage index (as so defined) 

for 2011; and 

‘‘(ii) the premium rate in effect under clause (v) of subparagraph (A) for plan years beginning in the preceding calendar 

year. 

If the amount determined under this subparagraph is not a multiple of $1, such product shall be rounded to the nearest multiple 

of $1.’’. 

PART III—IMPROVEMENTS OF PBGC 

SEC. 40231. PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE IMPROVEMENT. 

(a) BOARD OF DIRECTORS OF THE PENSION BENEFIT GUARANTY

CORPORATION.— 


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(1) IN GENERAL.—Section 4002(d) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302(d)) is amended— 

(A) by striking ‘‘(d) The board of directors’’ and inserting ‘‘(d)(1) The board of directors’’; and 

(B) by adding at the end the following: 

‘‘(2) A majority of the members of the board of directors in office 

shall constitute a quorum for the transaction of business. The vote 

of the majority of the members present and voting at a meeting at 

which a quorum is present shall be the act of the board of directors. 

‘‘(3) Each member of the board of directors shall designate in 

writing an official, not below the level of Assistant Secretary, to 

serve as the voting representative of such member on the board. 

Such designation shall be effective until revoked or until a date or 

event specified therein. Any such representative may refer for board 

action any matter under consideration by the designating board 

member, but such representative shall not count toward establishment of a quorum as described under paragraph (2). 

‘‘(4) The Inspector General of the corporation shall report to the 

board of directors, and not less than twice a year, shall attend a 

meeting of the board of directors to provide a report on the activities 

and findings of the Inspector General, including with respect to 

monitoring and review of the operations of the corporation. 

‘‘(5) The General Counsel of the corporation shall— 

‘‘(A) serve as the secretary to the board of directors, and advise such board as needed; and 

‘‘(B) have overall responsibility for all legal matters affecting the corporation and provide the corporation with legal advice and opinions on all matters of law affecting the corporation, except that the authority of the General Counsel shall not 

extend to the Office of Inspector General and the independent 

legal counsel of such Office. 

‘‘(6) Notwithstanding any other provision of this Act, the Office 

of Inspector General and the legal counsel of such Office are independent of the management of the corporation and the General 

Counsel of the corporation. 

‘‘(7) The board of directors may appoint and fix the compensation of employees as may be required to enable the board of directors 

to perform its duties. The board of directors shall determine the 

qualifications and duties of such employees and may appoint and 

fix the compensation of experts and consultants in accordance with 

the provisions of section 3109 of title 5, United States Code.’’. 

(2) NUMBER OF MEETINGS; PUBLIC AVAILABILITY.—Section 

4002(e) of such Act (29 U.S.C. 1302(e)) is amended— 

(A) by striking ‘‘The board’’ and inserting ‘‘(1) The 

board’’; 

(B) by striking ‘‘the corporation.’’ and inserting ‘‘the 

corporation, but in no case less than 4 times a year with 

not fewer than 2 members present. Not less than 1 meeting 

of the board of directors during each year shall be a joint 

meeting with the advisory committee under subsection (h).’’; 

and 

(C) by adding at the end the following: 


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‘‘(2)(A) Except as provided in subparagraph (B), the chairman 

of the board of directors shall make available to the public the minutes from each meeting of the board of directors. 

‘‘(B) The minutes of a meeting of the board of directors, or a 

portion thereof, shall not be subject to disclosure under subparagraph (A) if the chairman reasonably determines that such minutes, 

or portion thereof, contain confidential employer information including information obtained under section 4010, information about the 

investment activities of the corporation, or information regarding 

personnel decisions of the corporation. 

‘‘(C) The minutes of a meeting, or portion of thereof, exempt 

from disclosure pursuant to subparagraph (B) shall be exempt from 

disclosure under section 552(b) of title 5, United States Code. For 

purposes of such section 552, this subparagraph shall be considered 

a statute described in subsection (b)(3) of such section 552.’’. 

(3) ADVISORY COMMITTEE.— 

(A) ISSUES CONSIDERED BY THE COMMITTEE.—Section 

4002(h)(1) of such Act (29 U.S.C. 1302(h)(1)) is amended— 

(i) by striking ‘‘, and (D)’’ and inserting ‘‘, (D)’’; 

and 

(ii) by striking ‘‘time to time.’’ and inserting ‘‘time 

to time, and (E) other issues as determined appropriate 

by the advisory committee.’’. 

(B) JOINT MEETING.—Section 4002(h)(3) of such Act (29 

U.S.C. 1302(h)(3)) is amended by adding at the end the following: ‘‘Not less than 1 meeting of the advisory committee 

during each year shall be a joint meeting with the board 

of directors under subsection (e).’’. 

(b) AVOIDING CONFLICTS OF INTEREST.—Section 4002 of the 

Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302) 

is amended by adding at the end the following: 

‘‘(j) CONFLICTS OF INTEREST.— 

‘‘(1) IN GENERAL.—The Director of the corporation and each 

member of the board of directors shall not participate in a decision of the corporation in which the Director or such member 

has a direct financial interest. The Director of the corporation 

shall not participate in any activities that would present a potential conflict of interest or appearance of a conflict of interest 

without approval of the board of directors. 

‘‘(2) ESTABLISHMENT OF POLICY.—The board of directors 

shall establish a policy that will inform the identification of potential conflicts of interests of the members of the board of directors and mitigate perceived conflicts of interest of such members and the Director of the corporation.’’. 

(c) RISK MITIGATION.—Section 4002 of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1302), as amended by subsection (b), is further amended by adding at the end the following: 

‘‘(k) RISK MANAGEMENT OFFICER.—The corporation shall have 

a risk management officer whose duties include evaluating and 

mitigating the risk that the corporation might experience. The individual in such position shall coordinate the risk management efforts 

of the corporation, explain risks and controls to senior management 

and the board of directors of the corporation, and make recommendations.’’. 


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(d) DIRECTOR.—Section 4002(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302(c)) is amended to read 

as follows: 

‘‘(c) The Director shall be accountable to the board of directors. 

The Director shall serve for a term of 5 years unless removed by the 

President or the board of directors before the expiration of such 5- 

year term.’’. 

(e) SENSES OF CONGRESS.— 

(1) FORMATION OF COMMITTEES.—It is the sense of Congress 

that the board of directors of the Pension Benefit Guaranty Corporation established under section 4002 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302), as amended 

by this section, should form committees, including an audit 

committee and an investment committee composed of not less 

than 2 members, to enhance the overall effectiveness of the 

board of directors. 

(2) ADVISORY COMMITTEE.—It is the sense of Congress that 

the advisory committee to the Pension Benefit Guaranty Corporation established under section 4002 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302), as amended 

by this section, should provide to the board of directors of such 

corporation policy recommendations regarding changes to the 

law that would be beneficial to the corporation or the voluntary 

private pension system. 

(f) STUDY REGARDING GOVERNANCE STRUCTURES.— 

(1) IN GENERAL.—Not later than 90 days after the date of 

enactment of this Act, the Pension Benefit Guaranty Corporation shall enter into a contract with the National Academy of 

Public Administration to conduct the study described in paragraph (2) with respect to the Pension Benefit Guaranty Corporation. 

(2) CONTENT OF STUDY.—The study conducted under paragraph (1) shall include— 

(A) a review of the governance structures of governmental and nongovernmental organizations that are analogous to the Pension Benefit Guaranty Corporation; and 

(B) recommendations regarding— 

(i) the ideal size and composition of the board of 

directors of the Pension Benefit Guaranty Corporation; 

(ii) procedures to select and remove members of 

such board; 

(iii) qualifications and term lengths of members of 

such board; and 

(iv) policies necessary to enhance Congressional 

oversight and transparency of such board and to mitigate potential conflicts of interest of the members of 

such board. 

(3) SUBMISSION TO CONGRESS.—Not later than 1 year after 

the initiation of the study under paragraph (1), the National 

Academy of Public Administration shall submit the results of 

the study to the Committees on Health, Education, Labor, and 

Pensions and Finance of the Senate and the Committees on 

Education and the Workforce and Ways and Means of the 

House of Representatives. 


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SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE. 

(a) IN GENERAL.—Title IV of the Employee Retirement Income 

Security Act of 1974 (29 U.S.C. 1301 et seq.) is amended by inserting after section 4003 the following: 

‘‘SEC. 4004. PARTICIPANT AND PLAN SPONSOR ADVOCATE. 

‘‘(a) IN GENERAL.—The board of directors of the corporation 

shall select a Participant and Plan Sponsor Advocate from the candidates nominated by the advisory committee to the corporation 

under section 4002(h)(1) and without regard to the provisions of 

title 5, United States Code, relating to appointments in the competitive service or Senior Executive Service. 

‘‘(b) DUTIES.—The Participant and Plan Sponsor Advocate 

shall— 

‘‘(1) act as a liaison between the corporation, sponsors of defined benefit pension plans insured by the corporation, and participants in pension plans trusteed by the corporation; 

‘‘(2) advocate for the full attainment of the rights of participants in plans trusteed by the corporation; 

‘‘(3) assist pension plan sponsors and participants in resolving disputes with the corporation; 

‘‘(4) identify areas in which participants and plan sponsors 

have persistent problems in dealings with the corporation; 

‘‘(5) to the extent possible, propose changes in the administrative practices of the corporation to mitigate problems; 

‘‘(6) identify potential legislative changes which may be appropriate to mitigate problems; and 

‘‘(7) refer instances of fraud, waste, and abuse, and violations of law to the Office of the Inspector General of the corporation. 

‘‘(c) REMOVAL.—If the Participant and Plan Sponsor Advocate 

is removed from office or is transferred to another position or location within the corporation or the Department of Labor, the board 

of the directors of the corporation shall communicate in writing the 

reasons for any such removal or transfer to Congress not less than 

30 days before the removal or transfer. Nothing in this subsection 

shall prohibit a personnel action otherwise authorized by law, other 

than transfer or removal. 

‘‘(d) COMPENSATION.—The annual rate of basic pay for the Participant and Plan Sponsor Advocate shall be the same rate as the 

highest rate of basic pay established for the Senior Executive Service 

under section 5382 of title 5, United States Code, or, if the board 

of directors of the corporation so determines, at a rate fixed under 

section 9503 of such title. 

‘‘(e) ANNUAL REPORT.— 

‘‘(1) IN GENERAL.—Not later than December 31 of each calendar year, the Participant and Plan Sponsor Advocate shall 

report to the Health, Education, Labor, and Pensions Committee of the Senate, the Committee on Finance of the Senate, 

the Committee on Education and the Workforce of the House of 

Representatives, and the Committee on Ways and Means of the 

House of Representatives on the activities of the Office of the 

Participant and Plan Sponsor Advocate during the fiscal year 

ending during such calendar year. 

‘‘(2) CONTENT.—Each report submitted under paragraph (1) 

shall— 


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‘‘(A) summarize the assistance requests received from 

participants and plan sponsors and describe the activities, 

and evaluate the effectiveness, of the Participant and Plan 

Sponsor Advocate during the preceding year; 

‘‘(B) identify significant problems the Participant and 

Plan Sponsor Advocate has identified; 

‘‘(C) include specific legislative and regulatory changes 

to address the problems; and 

‘‘(D) identify any actions taken to correct problems 

identified in any previous report. 

‘‘(3) CONCURRENT SUBMISSION.—The Participant and Plan 

Sponsor Advocate shall submit a copy of each report to the Secretary of Labor, the Director of the corporation, and any other 

appropriate official at the same time such report is submitted 

to the committees of Congress under paragraph (1).’’. 

(b) ADVISORY COMMITTEE NOMINATIONS.—Section 4002(h)(1) of 

the Employee Retirement Income Security Act of 1974 (29 

U.S.C.1302(h)(1)) is amended by adding at the end the following 

new sentence: ‘‘In the event of a vacancy or impending vacancy in 

the office of the Participant and Plan Sponsor Advocate established 

under section 4004, the Advisory Committee shall, in consultation 

with the Director of the corporation and participant and plan sponsor advocacy groups, nominate at least two but no more than three 

individuals to serve as the Participant and Plan Sponsor Advocate.’’. 

(c) CLERICAL AMENDMENT.—The table of contents in section 1 

of the Employee Retirement Income Security Act of 1974 is amended 

by inserting after the item relating to section 4003 the following new 

item: 

‘‘4004. Participant and Plan Sponsor Advocate.’’. 

SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION BENEFIT GUARANTY CORPORATION. 

(a) ANNUAL PEER REVIEW OF INSURANCE MODELING SYS- TEMS.—The Pension Benefit Guaranty Corporation shall contract 

with a capable agency or organization that is independent from the 

Corporation, such as the Social Security Administration, to conduct 

an annual peer review of the Corporation’s Single-Employer Pension 

Insurance Modeling System and the Corporation’s Multiemployer 

Pension Insurance Modeling System. The board of directors of the 

Corporation shall designate the agency or organization with which 

any such contract is entered into. The first of such annual peer reviews shall be initiated no later than 3 months after the date of enactment of this Act. 

(b) POLICIES AND PROCEDURES RELATING TO THE POLICY, RESEARCH, AND ANALYSIS DEPARTMENT.—The Pension Benefit Guaranty Corporation shall— 

(1) develop written quality review policies and procedures 

for all modeling and actuarial work performed by the Corporation’s Policy, Research, and Analysis Department; and 

(2) conduct a record management review of such Department to determine what records must be retained as Federal 

records. 

(c) REPORT RELATING TO OIG RECOMMENDATIONS.—Not later 

than 2 months after the date of enactment of this Act, the Pension 

Benefit Guaranty Corporation shall submit to Congress a report, apVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00468 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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proved by the board of directors of the Corporation, setting forth a 

timetable for addressing the outstanding recommendations of the 

Office of the Inspector General relating to the Policy, Research, and 

Analysis Department and the Benefits Administration and Payment 

Department. 

SEC. 40234. LINE OF CREDIT REPEAL. 

(a) IN GENERAL.—Subsection (c) of section 4005 of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1305) is repealed. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 4005 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1305) is amended— 

(A) in subsection (b)— 

(i) paragraph (1)— 

(I) by striking subparagraph (A); and 

(II) by redesignating subparagraphs (B) 

through (G) as subparagraphs (A) through (F), respectively; 

(ii) in paragraph (2)— 

(I) by striking subparagraph (C); and 

(II) by redesignating subparagraphs (D) and 

(E) as subparagraphs (C) and (D), respectively; 

and 

(iii) in paragraph (3), by striking ‘‘but,’’ and all 

that follows through the end and inserting a period; 

and 

(B) in subsection (g)— 

(i) by striking paragraph (2); and 

(ii) by redesignating paragraph (3) as paragraph 

(2). 

(2) Section 4402 of such Act (29 U.S.C. 1461) is amended— 

(A) in subsection (c)(4)— 

(i) by striking subparagraph (C); and 

(ii) by redesignating subparagraph (D) as subparagraph (C); and 

(B) in subsection (d), by striking ‘‘or (D)’’. 

PART IV—TRANSFERS OF EXCESS PENSION 

ASSETS 

SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS 

TO RETIREE HEALTH ACCOUNTS. 

(a) IN GENERAL.—Paragraph (5) of section 420(b) of the Internal Revenue Code of 1986 is amended by striking ‘‘December 31, 

2013’’ and inserting ‘‘December 31, 2021’’. 

(b) CONFORMING ERISA AMENDMENTS.— 

(1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the Employee Retirement Income Security Act of 1974 are each amended by striking ‘‘Pension Protection Act of 2006’’ and inserting 

‘‘MAP-21’’. 

(2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) is 

amended by striking ‘‘January 1, 2014’’ and inserting ‘‘January 

1, 2022’’. 


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(c) EFFECTIVE DATE.—The amendments made by this Act shall 

take effect on the date of the enactment of this Act. 

SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE 

GROUP TERM LIFE INSURANCE ACCOUNTS. 

(a) IN GENERAL.—Subsection (a) of section 420 of the Internal 

Revenue Code of 1986 is amended by inserting ‘‘, or an applicable 

life insurance account,’’ after ‘‘health benefits account’’. 

(b) APPLICABLE LIFE INSURANCE ACCOUNT DEFINED.— (1) IN GENERAL.—Subsection (e) of section 420 of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and 

by inserting after paragraph (3) the following new paragraph: 

‘‘(4) APPLICABLE LIFE INSURANCE ACCOUNT.—The term ‘applicable life insurance account’ means a separate account established and maintained for amounts transferred under this section for qualified current retiree liabilities based on premiums 

for applicable life insurance benefits.’’. 

(2) APPLICABLE LIFE INSURANCE BENEFITS DEFINED.—Paragraph (1) of section 420(e) of such Code is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting 

after subparagraph (C) the following new subparagraph: 

‘‘(D) APPLICABLE LIFE INSURANCE BENEFITS.—The term 

‘applicable life insurance benefits’ means group-term life insurance coverage provided to retired employees who, immediately before the qualified transfer, are entitled to receive 

such coverage by reason of retirement and who are entitled 

to pension benefits under the plan, but only to the extent 

that such coverage is provided under a policy for retired 

employees and the cost of such coverage is excludable from 

the retired employee’s gross income under section 79.’’. 

(3) COLLECTIVELY BARGAINED LIFE INSURANCE BENEFITS

DEFINED.— 

(A) IN GENERAL.—Paragraph (6) of section 420(f) of 

such Code is amended by redesignating subparagraph (D) 

as subparagraph (E) and by inserting after subparagraph 

(C) the following new subparagraph: 

‘‘(D) COLLECTIVELY BARGAINED LIFE INSURANCE BENEFITS.—The term ‘collectively bargained life insurance benefits’ means, with respect to any collectively bargained transfer— 

‘‘(i) applicable life insurance benefits which are 

provided to retired employees who, immediately before 

the transfer, are entitled to receive such benefits by reason of retirement, and 

‘‘(ii) if specified by the provisions of the collective 

bargaining agreement governing the transfer, applicable life insurance benefits which will be provided at retirement to employees who are not retired employees at 

the time of the transfer.’’. 

(B) CONFORMING AMENDMENTS.— 

(i) Clause (i) of section 420(e)(1)(C) of such Code is 

amended by striking ‘‘upon retirement’’ and inserting 

‘‘by reason of retirement’’. 

(ii) Subparagraph (C) of section 420(f)(6) of such 

Code is amended— 


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(I) by striking ‘‘which are provided to’’ in the 

matter preceding clause (i), 

(II) by inserting ‘‘which are provided to’’ before 

‘‘retired employees’’ in clause (i), 

(III) by striking ‘‘upon retirement’’ in clause (i) 

and inserting ‘‘by reason of retirement’’, and 

(IV) by striking ‘‘active employees who, following their retirement,’’ and inserting ‘‘which will 

be provided at retirement to employees who are not 

retired employees at the time of the transfer and 

who’’. 

(c) MAINTENANCE OF EFFORT.— 

(1) IN GENERAL.—Subparagraph (A) of section 420(c)(3) of 

the Internal Revenue Code of 1986 is amended by inserting ‘‘, 

and each group-term life insurance plan under which applicable life insurance benefits are provided,’’ after ‘‘health benefits 

are provided’’. 

(2) CONFORMING AMENDMENTS.— (A) Subparagraph (B) of section 420(c)(3) of such Code 

is amended— 

(i) by redesignating subclauses (I) and (II) of 

clause (i) as subclauses (II) and (III) of such clause, respectively, and by inserting before subclause (II) of 

such clause, as so redesignated, the following new subclause: 

‘‘(I) separately with respect to applicable 

health benefits and applicable life insurance benefits,’’, and 

(ii) by striking ‘‘for applicable health benefits’’ and 

all that follows in clause (ii) and inserting ‘‘was provided during such taxable year for the benefits with respect to which the determination under clause (i) is 

made.’’. 

(B) Subparagraph (C) of section 420(c)(3) of such Code 

is amended— 

(i) by inserting ‘‘for applicable health benefits’’ 

after ‘‘applied separately’’, and 

(ii) by inserting ‘‘, and separately for applicable life 

insurance benefits with respect to individuals age 65 or 

older at any time during the taxable year and with respect to individuals under age 65 during the taxable 

year’’ before the period. 

(C) Subparagraph (E) of section 420(c)(3) of such Code 

is amended— 

(i) in clause (i), by inserting ‘‘or retiree life insurance coverage, as the case may be,’’ after ‘‘retiree health 

coverage’’, 

(ii) in clause (ii), by inserting ‘‘FOR RETIREE

HEALTH COVERAGE’’ after ‘‘COST REDUCTIONS’’ in the 

heading thereof, and 

(iii) in clause (ii)(II), by inserting ‘‘with respect to 

applicable health benefits’’ after ‘‘liabilities of the employer’’. 

(D) Paragraph (2) of section 420(f) of such Code is 

amended by striking ‘‘collectively bargained retiree health 


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liabilities’’ each place it occurs and inserting ‘‘collectively 

bargained retiree liabilities’’. 

(E) Clause (i) of section 420(f)(2)(D) of such Code is 

amended— 

(i) by inserting ‘‘, and each group-term life insurance plan or arrangement under which applicable life 

insurance benefits are provided,’’ in subclause (I) after 

‘‘applicable health benefits are provided’’, 

(ii) by inserting ‘‘or applicable life insurance benefits, as the case may be,’’ in subclause (I) after ‘‘provides applicable health benefits’’, 

(iii) by striking ‘‘group health’’ in subclause (II), 

and 

(iv) by inserting ‘‘or collectively bargained life insurance benefits’’ in subclause (II) after ‘‘collectively 

bargained health benefits’’. 

(F) Clause (ii) of section 420(f)(2)(D) of such Code is 

amended— 

(i) by inserting ‘‘with respect to applicable health 

benefits or applicable life insurance benefits’’ after ‘‘requirements of subsection (c)(3)’’, and 

(ii) by adding at the end the following: ‘‘Such election may be made separately with respect to applicable 

health benefits and applicable life insurance benefits. 

In the case of an election with respect to applicable life 

insurance benefits, the first sentence of this clause shall 

be applied as if subsection (c)(3) as in effect before the 

amendments made by such Act applied to such benefits.’’. 

(G) Clause (iii) of section 420(f)(2)(D) of such Code is 

amended— 

(i) by striking ‘‘retiree’’ each place it occurs, and 

(ii) by inserting ‘‘, collectively bargained life insurance benefits, or both, as the case may be,’’ after 

‘‘health benefits’’ each place it occurs. 

(d) COORDINATION WITH SECTION 79.—Section 79 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: 

‘‘(f) EXCEPTION FOR LIFE INSURANCE PURCHASED IN CONNEC- TION WITH QUALIFIED TRANSFER OF EXCESS PENSION ASSETS.— 

Subsection (b)(3) and section 72(m)(3) shall not apply in the case of 

any cost paid (whether directly or indirectly) with assets held in an 

applicable life insurance account (as defined in section 420(e)(4)) 

under a defined benefit plan.’’. 

(e) CONFORMING AMENDMENTS.— 

(1) Section 420 of the Internal Revenue Code of 1986 is 

amended by striking ‘‘qualified current retiree health liabilities’’ 

each place it appears and inserting ‘‘qualified current retiree liabilities’’. 

(2) Section 420 of such Code is amended by inserting ‘‘, or 

an applicable life insurance account,’’ after ‘‘a health benefits 

account’’ each place it appears in subsection (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection (c)(1), subsection 

(d)(1)(A), and subsection (f)(2)(E)(ii). 

(3) Section 420(b) of such Code is amended— 


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(A) by adding the following at the end of paragraph 

(2)(A): ‘‘If there is a transfer from a defined benefit plan to 

both a health benefits account and an applicable life insurance account during any taxable year, such transfers shall 

be treated as 1 transfer for purposes of this paragraph.’’, 

and 

(B) by inserting ‘‘to an account’’ after ‘‘may be transferred’’ in paragraph (3). 

(4) The heading for section 420(c)(1)(B) of such Code is 

amended by inserting ‘‘OR LIFE INSURANCE’’ after ‘‘HEALTH BEN- EFITS’’. 

(5) Paragraph (1) of section 420(e) of such Code is amended— 

(A) by inserting ‘‘and applicable life insurance benefits’’ 

in subparagraph (A) after ‘‘applicable health benefits’’, and 

(B) by striking ‘‘HEALTH’’ in the heading thereof. 

(6) Subparagraph (B) of section 420(e)(1) of such Code is 

amended— 

(A) in the matter preceding clause (i), by inserting ‘‘(determined separately for applicable health benefits and applicable life insurance benefits)’’ after ‘‘shall be reduced by 

the amount’’, 

(B) in clause (i), by inserting ‘‘or applicable life insurance accounts’’ after ‘‘health benefit accounts’’, and 

(C) in clause (i), by striking ‘‘qualified current retiree 

health liability’’ and inserting ‘‘qualified current retiree liability’’. 

(7) The heading for subsection (f) of section 420 of such 

Code is amended by striking ‘‘HEALTH’’ each place it occurs. 

(8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code is 

amended by inserting ‘‘or applicable life insurance account, as 

the case may be,’’ after ‘‘health benefits account’’. 

(9) Subclause (III) of section 420(f)(2)(E)(i) of such Code is 

amended— 

(A) by inserting ‘‘defined benefit’’ before ‘‘plan maintained by an employer’’, and 

(B) by inserting ‘‘health’’ before ‘‘benefit plans maintained by the employer’’. 

(10) Paragraphs (4) and (6) of section 420(f) of such Code 

are each amended by striking ‘‘collectively bargained retiree 

health liabilities’’ each place it occurs and inserting ‘‘collectively 

bargained retiree liabilities’’. 

(11) Subparagraph (A) of section 420(f)(6) of such Code is 

amended— 

(A) in clauses (i) and (ii), by inserting ‘‘, in the case of 

a transfer to a health benefits account,’’ before ‘‘his covered 

spouse and dependents’’, and 

(B) in clause (ii), by striking ‘‘health plan’’ and inserting ‘‘plan’’. 

(12) Subparagraph (B) of section 420(f)(6) of such Code is 

amended— 

(A) in clause (i), by inserting ‘‘, and collectively bargained life insurance benefits,’’ after ‘‘collectively bargained 

health benefits’’, 

(B) in clause (ii)— 


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(i) by adding at the end the following: ‘‘The preceding sentence shall be applied separately for collectively bargained health benefits and collectively bargained life insurance benefits.’’, and 

(ii) by inserting ‘‘, applicable life insurance accounts,’’ after ‘‘health benefit accounts’’, and 

(C) by striking ‘‘HEALTH’’ in the heading thereof. 

(13) Subparagraph (E) of section 420(f)(6) of such Code, as 

redesignated by subsection (b), is amended— 

(A) by striking ‘‘bargained health’’ and inserting ‘‘bargained’’, 

(B) by inserting ‘‘, or a group-term life insurance plan 

or arrangement for retired employees,’’ after ‘‘dependents’’, 

and 

(C) by striking ‘‘HEALTH’’ in the heading thereof. 

(14) Section 101(e) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)) is amended— 

(A) in paragraphs (1) and (2), by inserting ‘‘or applicable life insurance account’’ after ‘‘health benefits account’’ 

each place it appears, and 

(B) in paragraph (1), by inserting ‘‘or applicable life insurance benefit liabilities’’ after ‘‘health benefits liabilities’’. 

(f) TECHNICAL CORRECTION.—Clause (iii) of section 420(f)(6)(B) 

of the Internal Revenue Code of 1986 is amended by striking 

‘‘416(I)(1)’’ and inserting ‘‘416(i)(1)’’. 

(g) REPEAL OF DEADWOOD.— (1) Subparagraph (A) of section 420(b)(1) of the Internal 

Revenue Code of 1986 is amended by striking ‘‘in a taxable year 

beginning after December 31, 1990’’. 

(2) Subsection (b) of section 420 of such Code is amended 

by striking paragraph (4) and by redesignating paragraph (5), 

as amended by this Act, as paragraph (4). 

(3) Paragraph (2) of section 420(b) of such Code, as amended by this section, is amended— 

(A) by striking subparagraph (B), and 

(B) by striking ‘‘PER YEAR.—’’ and all that follows 

through ‘‘No more than’’ and inserting ‘‘PER YEAR.—No 

more than’’. 

(4) Paragraph (2) of section 420(c) of such Code is amended— 

(A) by striking subparagraph (B), 

(B) by moving subparagraph (A) two ems to the left, 

and 

(C) by striking ‘‘BEFORE TRANSFER.—’’ and all that follows through ‘‘The requirements of this paragraph’’ and inserting the following: ‘‘BEFORE TRANSFER.—The requirements of this paragraph’’. 

(5) Paragraph (2) of section 420(d) of such Code is amended by striking ‘‘after December 31, 1990’’. 

(h) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section 

shall apply to transfers made after the date of the enactment of 

this Act. 

(2) CONFORMING AMENDMENTS RELATING TO PENSION PROTECTION ACT.—The amendments made by subsections (b)(3)(B) 


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and (f) shall take effect as if included in the amendments made 

by section 841(a) of the Pension Protection Act of 2006. 

Subtitle C—Additional Transfers to 

Highway Trust Fund 

SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND. 

Subsection (f) of section 9503 of the Internal Revenue Code of 

1986, as amended by this Act, is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the 

following new paragraph: 

‘‘(4) ADDITIONAL APPROPRIATIONS TO TRUST FUND.—Out of 

money in the Treasury not otherwise appropriated, there is 

hereby appropriated to— 

‘‘(A) the Highway Account (as defined in subsection 

(e)(5)(B)) in the Highway Trust Fund— 

‘‘(i) for fiscal year 2013, $6,200,000,000, and 

‘‘(ii) for fiscal year 2014, $10,400,000,000, and 

‘‘(B) the Mass Transit Account in the Highway Trust 

Fund, for fiscal year 2014, $2,200,000,000.’’. 

DIVISION E—RESEARCH AND 

EDUCATION 

SEC. 50001. SHORT TITLE. 

This division may be cited as the ‘‘Transportation Research and 

Innovative Technology Act of 2012’’. 

TITLE I—FUNDING 

SEC. 51001. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—The following amounts are authorized to be 

appropriated out of the Highway Trust Fund (other than the Mass 

Transit Account): 

(1) HIGHWAY RESEARCH AND DEVELOPMENT PROGRAM.—To 

carry out sections 503(b), 503(d), and 509 of title 23, United 

States Code, $115,000,000 for each of fiscal years 2013 and 

2014. 

(2) TECHNOLOGY AND INNOVATION DEPLOYMENT PROGRAM.—To carry out section 503(c) of title 23, United States 

Code, $62,500,000 for each of fiscal years 2013 and 2014. 

(3) TRAINING AND EDUCATION.—To carry out section 504 of 

title 23, United States Code, $24,000,000 for each of fiscal years 

2013 and 2014. 

(4) INTELLIGENT TRANSPORTATION SYSTEMS PROGRAM.—To 

carry out sections 512 through 518 of title 23, United States 

Code, $100,000,000 for each of fiscal years 2013 and 2014. 

(5) UNIVERSITY TRANSPORTATION CENTERS PROGRAM.—To 

carry out section 5505 of title 49, United States Code, 

$72,500,000 for each of fiscal years 2013 and 2014. 


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(6) BUREAU OF TRANSPORTATION STATISTICS.—To carry out chapter 63 of title 49, United States Code, $26,000,000 for each 

of fiscal years 2013 and 2014. 

(b) APPLICABILITY OF TITLE 23, UNITED STATES CODE.—Funds 

authorized to be appropriated by subsection (a) shall— 

(1) be available for obligation in the same manner as if 

those funds were apportioned under chapter 1 of title 23, 

United States Code, except that the Federal share of the cost of 

a project or activity carried out using those funds shall be 80 

percent, unless otherwise expressly provided by this Act (including the amendments by this Act) or otherwise determined by the 

Secretary; and 

(2) remain available until expended and not be transferable. 

TITLE II—RESEARCH, TECHNOLOGY, 

AND EDUCATION 

SEC. 52001. RESEARCH, TECHNOLOGY, AND EDUCATION. 

Section 501 of title 23, United States Code, is amended— 

(1) by redesignating paragraph (2) as paragraph (8); 

(2) by inserting after paragraph (1) the following: 

‘‘(2) INCIDENT.—The term ‘incident’ means a crash, natural 

disaster, workzone activity, special event, or other emergency 

road user occurrence that adversely affects or impedes the normal flow of traffic. 

‘‘(3) INNOVATION LIFECYCLE.—The term ‘innovation lifecycle’ 

means the process of innovating through— 

‘‘(A) the identification of a need; 

‘‘(B) the establishment of the scope of research to address that need; 

‘‘(C) setting an agenda; 

‘‘(D) carrying out research, development, deployment, 

and testing of the resulting technology or innovation; and 

‘‘(E) carrying out an evaluation of the costs and benefits of the resulting technology or innovation. 

‘‘(4) INTELLIGENT TRANSPORTATION INFRASTRUCTURE.—The 

term ‘intelligent transportation infrastructure’ means fully integrated public sector intelligent transportation system components, as defined by the Secretary. 

‘‘(5) INTELLIGENT TRANSPORTATION SYSTEM.—The terms ‘intelligent transportation system’ and ‘ITS’ mean electronics, 

photonics, communications, or information processing used singly or in combination to improve the efficiency or safety of a 

surface transportation system. 

‘‘(6) NATIONAL ARCHITECTURE.—For purposes of this chapter, the term ‘national architecture’ means the common framework for interoperability that defines— 

‘‘(A) the functions associated with intelligent transportation system user services; 

‘‘(B) the physical entities or subsystems within which 

the functions reside; 

‘‘(C) the data interfaces and information flows between 

physical subsystems; and 


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‘‘(D) the communications requirements associated with 

the information flows. 

‘‘(7) PROJECT.—The term ‘project’ means an undertaking to 

research, develop, or operationally test intelligent transportation 

systems or any other undertaking eligible for assistance under 

this chapter.’’; and 

(3) by inserting after paragraph (8) (as so redesignated) the 

following: 

‘‘(9) STANDARD.—The term ‘standard’ means a document 

that— 

‘‘(A) contains technical specifications or other precise 

criteria for intelligent transportation systems that are to be 

used consistently as rules, guidelines, or definitions of characteristics so as to ensure that materials, products, processes, and services are fit for the intended purposes of the 

materials, products, processes, and services; and 

‘‘(B) may support the national architecture and promote— 

‘‘(i) the widespread use and adoption of intelligent 

transportation system technology as a component of the 

surface transportation systems of the United States; 

and 

‘‘(ii) interoperability among intelligent transportation system technologies implemented throughout the 

States.’’. 

SEC. 52002. SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, 

AND TECHNOLOGY. 

(a) SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, AND

TECHNOLOGY.—Section 502 of title 23, United States Code, is 

amended— 

(1) in the section heading by inserting ‘‘, DEVELOPMENT, 

AND TECHNOLOGY’’ after ‘‘SURFACE TRANSPORTATION RESEARCH’’; 

(2) in subsection (a)— 

(A) by redesignating paragraphs (1) through (8) as 

paragraphs (2) through (9), respectively; 

(B) by inserting before paragraph (2) (as redesignated 

by subparagraph (A)) the following: 

‘‘(1) APPLICABILITY.—The research, development, and technology provisions of this section shall apply throughout this 

chapter.’’; 

(C) in paragraph (2) (as redesignated by subparagraph 

(A))— 

(i) by inserting ‘‘within the innovation lifecycle’’ 

after ‘‘activities’’; and 

(ii) by inserting ‘‘communications, impact analysis,’’ after ‘‘training,’’; 

(D) in paragraph (3) (as redesignated by subparagraph 

(A))— 

(i) in subparagraph (B) by striking ‘‘supports research in which there is a clear public benefit and’’ and 

inserting ‘‘delivers a clear public benefit and occurs 

where’’; 

(ii) in subparagraph (C) by striking ‘‘or’’ after the 

semicolon; 


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(iii) by redesignating subparagraph (D) as subparagraph (I); and 

(iv) by inserting after subparagraph (C) the following: 

‘‘(D) meets and addresses current or emerging needs; 

‘‘(E) addresses current gaps in research; 

‘‘(F) presents the best means to align resources with 

multiyear plans and priorities; 

‘‘(G) ensures the coordination of highway research and 

technology transfer activities, including through activities 

performed by university transportation centers; 

‘‘(H) educates transportation professionals; or’’; 

(E) in paragraph (4) (as redesignated by subparagraph 

(A)) by striking subparagraphs (B) through (D) and inserting the following: 

‘‘(B) partner with State highway agencies and other 

stakeholders as appropriate to facilitate research and technology transfer activities; 

‘‘(C) communicate the results of ongoing and completed 

research; 

‘‘(D) lead efforts to coordinate national emphasis areas 

of highway research, technology, and innovation deployment; 

‘‘(E) leverage partnerships with industry, academia, 

international entities, and State departments of transportation; 

‘‘(F) lead efforts to reduce unnecessary duplication of 

effort; and 

‘‘(G) lead efforts to accelerate innovation delivery.’’; 

(F) in paragraph (5)(C) (as redesignated by subparagraph (A)) by striking ‘‘policy and planning’’ and inserting 

‘‘all highway objectives seeking to improve the performance 

of the transportation system’’; 

(G) in paragraph (6) (as redesignated by subparagraph 

(A)) in the second sentence, by inserting ‘‘tribal governments,’’ after ‘‘local governments,’’; 

(H) in paragraph (8) (as redesignated by subparagraph 

(A))— 

(i) in the first sentence, by striking ‘‘To the maximum’’ and inserting the following: 

‘‘(A) IN GENERAL.—To the maximum’’; 

(ii) in the second sentence, by striking ‘‘Performance measures’’ and inserting the following: 

‘‘(B) PERFORMANCE MEASURES.—Performance measures’’; 

(iii) in the third sentence, by striking ‘‘All evaluations’’ and inserting the following: 

‘‘(D) AVAILABILITY OF EVALUATIONS.—All evaluations 

under this paragraph’’; and 

(iv) by inserting after subparagraph (B) the following: 

‘‘(C) PROGRAM PLAN.—To the maximum extent practicable, each program pursued under this chapter shall be 

part of a data-driven, outcome-oriented program plan.’’; 

and 


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(I) in paragraph (9) (as redesignated by subparagraph 

(A)), by striking ‘‘surface’’; 

(3) in subsection (b)— 

(A) in paragraph (4) by striking ‘‘surface transportation 

research and technology development strategic plan developed under section 508’’ and inserting ‘‘transportation research and development strategic plan of the Secretary developed under section 508’’; 

(B) in paragraph (5) by striking ‘‘section’’ each place it 

appears and inserting ‘‘chapter’’; 

(C) in paragraph (6) by adding at the end the following: 

‘‘(C) TRANSFER OF AMOUNTS AMONG STATES OR TO FEDERAL HIGHWAY ADMINISTRATION.—The Secretary may, at 

the request of a State, transfer amounts apportioned or allocated to that State under this chapter to another State or 

the Federal Highway Administration to fund research, development, and technology transfer activities of mutual interest on a pooled funds basis. 

‘‘(D) TRANSFER OF OBLIGATION AUTHORITY.—Obligation 

authority for amounts transferred under this subsection 

shall be disbursed in the same manner and for the same 

amount as provided for the project being transferred.’’; and 

(D) by adding at the end the following: 

‘‘(7) PRIZE COMPETITIONS.— 

‘‘(A) IN GENERAL.—The Secretary may use up to 1 percent of the funds made available under section 51001 of the 

Transportation Research and Innovative Technology Act of 

2012 to carry out a program to competitively award cash 

prizes to stimulate innovation in basic and applied research and technology development that has the potential 

for application to the national transportation system. 

‘‘(B) TOPICS.—In selecting topics for prize competitions 

under this paragraph, the Secretary shall— 

‘‘(i) consult with a wide variety of governmental 

and nongovernmental representatives; and 

‘‘(ii) give consideration to prize goals that demonstrate innovative approaches and strategies to improve the safety, efficiency, and sustainability of the 

national transportation system. 

‘‘(C) ADVERTISING.—The Secretary shall encourage participation in the prize competitions through advertising efforts. 

‘‘(D) REQUIREMENTS AND REGISTRATION.—For each 

prize competition, the Secretary shall publish a notice on a 

public website that describes— 

‘‘(i) the subject of the competition; 

‘‘(ii) the eligibility rules for participation in the 

competition; 

‘‘(iii) the amount of the prize; and 

‘‘(iv) the basis on which a winner will be selected. 

‘‘(E) ELIGIBILITY.—An individual or entity may not receive a prize under this paragraph unless the individual or 

entity— 


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‘‘(i) has registered to participate in the competition 

pursuant to any rules promulgated by the Secretary 

under this section; 

‘‘(ii) has complied with all requirements under this 

paragraph; 

‘‘(iii)(I) in the case of a private entity, is incorporated in, and maintains a primary place of business 

in, the United States; or 

‘‘(II) in the case of an individual, whether participating singly or in a group, is a citizen or permanent 

resident of the United States; 

‘‘(iv) is not a Federal entity or Federal employee 

acting within the scope of his or her employment; and 

‘‘(v) has not received a grant to perform research 

on the same issue for which the prize is awarded. 

‘‘(F) LIABILITY.— 

‘‘(i) ASSUMPTION OF RISK.— 

‘‘(I) IN GENERAL.—A registered participant 

shall agree to assume any and all risks and waive 

claims against the Federal Government and its related entities, except in the case of willful misconduct, for any injury, death, damage, or loss of 

property, revenue, or profits, whether direct, indirect, or consequential, arising from participation 

in a competition, whether such injury, death, damage, or loss arises through negligence or otherwise. 

‘‘(II) RELATED ENTITY.—In this subparagraph, 

the term ‘related entity’ means a contractor, subcontractor (at any tier), supplier, user, customer, 

cooperating party, grantee, investigator, or 

detailee. 

‘‘(ii) FINANCIAL RESPONSIBILITY.—A participant 

shall obtain liability insurance or demonstrate financial responsibility, in amounts determined by the Secretary, for claims by— 

‘‘(I) a third party for death, bodily injury, or 

property damage, or loss resulting from an activity 

carried out in connection with participation in a 

competition, with the Federal Government named 

as an additional insured under the registered participant’s insurance policy and registered participants agreeing to indemnify the Federal Government against third party claims for damages arising from or related to competition activities; and 

‘‘(II) the Federal Government for damage or 

loss to Government property resulting from such 

an activity. 

‘‘(G) JUDGES.— 

‘‘(i) SELECTION.—Subject to clause (iii), for each 

prize competition, the Secretary, either directly or 

through an agreement under subparagraph (H), may 

appoint 1 or more qualified judges to select the winner 

or winners of the prize competition on the basis of the 

criteria described in subparagraph (D). 


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‘‘(ii) SELECTION.—Judges for each competition 

shall include individuals from outside the Federal 

Government, including the private sector. 

‘‘(iii) LIMITATIONS.—A judge selected under this 

subparagraph may not— 

‘‘(I) have personal or financial interests in, or 

be an employee, officer, director, or agent of, any 

entity that is a registered participant in a prize 

competition under this paragraph; or 

‘‘(II) have a familial or financial relationship 

with an individual who is a registered participant. 

‘‘(H) ADMINISTERING THE COMPETITION.—The Secretary 

may enter into an agreement with a private, nonprofit entity to administer the prize competition, subject to the provisions of this paragraph. 

‘‘(I) FUNDING.— 

‘‘(i) IN GENERAL.— 

‘‘(I) PRIVATE SECTOR FUNDING.—A cash prize 

under this paragraph may consist of funds appropriated by the Federal Government and funds provided by the private sector. 

‘‘(II) GOVERNMENT FUNDING.—The Secretary 

may accept funds from other Federal agencies, 

State and local governments, and metropolitan 

planning organizations for a cash prize under this 

paragraph. 

‘‘(III) NO SPECIAL CONSIDERATION.—The Secretary may not give any special consideration to 

any private sector entity in return for a donation 

under this subparagraph. 

‘‘(ii) AVAILABILITY OF FUNDS.—Notwithstanding 

any other provision of law, amounts appropriated for 

prize awards under this paragraph— 

‘‘(I) shall remain available until expended; 

and 

‘‘(II) may not be transferred, reprogrammed, or 

expended for other purposes until after the expiration of the 10-year period beginning on the last day 

of the fiscal year for which the funds were originally appropriated. 

‘‘(iii) SAVINGS PROVISION.—Nothing in this subparagraph may be construed to permit the obligation 

or payment of funds in violation of the Anti-Deficiency 

Act (31 U.S.C. 1341). 

‘‘(iv) PRIZE ANNOUNCEMENT.—A prize may not be 

announced under this paragraph until all the funds 

needed to pay out the announced amount of the prize 

have been appropriated by a governmental source or 

committed to in writing by a private source. 

‘‘(v) PRIZE INCREASES.—The Secretary may increase the amount of a prize after the initial announcement of the prize under this paragraph if— 

‘‘(I) notice of the increase is provided in the 

same manner as the initial notice of the prize; and 


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‘‘(II) the funds needed to pay out the announced amount of the increase have been appropriated by a governmental source or committed to 

in writing by a private source. 

‘‘(vi) CONGRESSIONAL NOTIFICATION.—A prize competition under this paragraph may offer a prize in an 

amount greater than $1,000,000 only after 30 days 

have elapsed after written notice has been transmitted 

to the Committee on Commerce, Science, and Transportation of the Senate and the Committees on Transportation and Infrastructure and Science, Space, and 

Technology of the House of Representatives. 

‘‘(vii) AWARD LIMIT.—A prize competition under 

this section may not result in the award of more than 

$25,000 in cash prizes without the approval of the Secretary. 

‘‘(J) COMPLIANCE WITH EXISTING LAW.—The Federal 

Government shall not, by virtue of offering or providing a 

prize under this paragraph, be responsible for compliance 

by registered participants in a prize competition with Federal law, including licensing, export control, and non-proliferation laws, and related regulations. 

‘‘(K) NOTICE AND ANNUAL REPORT.— ‘‘(i) IN GENERAL.—Not later than 30 days prior to 

carrying out an activity under subparagraph (A), the 

Secretary shall notify the Committees on Transportation and Infrastructure and Science, Space, and 

Technology of the House of Representatives and the 

Committees on Environment and Public Works and 

Commerce, Science, and Transportation of the Senate 

of the intent to use such authority. 

‘‘(ii) REPORTS.— 

‘‘(I) IN GENERAL.—The Secretary shall submit 

to the committees described in clause (i) on an annual basis a report on the activities carried out 

under subparagraph (A) in the preceding fiscal 

year if the Secretary exercised the authority under 

subparagraph (A) in that fiscal year. 

‘‘(II) INFORMATION INCLUDED.—A report under 

this subparagraph shall include, for each prize 

competition under subparagraph (A)— 

‘‘(aa) a description of the proposed goals of 

the prize competition; 

‘‘(bb) an analysis of why the use of the authority under subparagraph (A) was the preferable method of achieving the goals described 

in item (aa) as opposed to other authorities 

available to the Secretary, such as contracts, 

grants, and cooperative agreements; 

‘‘(cc) the total amount of cash prizes 

awarded for each prize competition, including 

a description of the amount of private funds 

contributed to the program, the source of such 

funds, and the manner in which the amounts 

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cated among the accounts of the Department 

for recording as obligations and expenditures; 

‘‘(dd) the methods used for the solicitation 

and evaluation of submissions under each 

prize competition, together with an assessment 

of the effectiveness of such methods and lessons learned for future prize competitions; 

‘‘(ee) a description of the resources, including personnel and funding, used in the execution of each prize competition together with a 

detailed description of the activities for which 

such resources were used and an accounting of 

how funding for execution was allocated 

among the accounts of the agency for recording 

as obligations and expenditures; and 

‘‘(ff) a description of how each prize competition advanced the mission of the Department.’’; 

(4) in subsection (c)— 

(A) in paragraph (3)(A)— 

(i) by striking ‘‘subsection’’ and inserting ‘‘chapter’’; 

and 

(ii) by striking ‘‘50’’ and inserting ‘‘80’’; and 

(B) in paragraph (4) by striking ‘‘subsection’’ and inserting ‘‘chapter’’; and 

(5) by striking subsections (d) through (j). 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by striking the item relating to section 502 and inserting the following: 

‘‘502. Surface transportation research, development, and technology.’’ 

SEC. 52003. RESEARCH AND TECHNOLOGY DEVELOPMENT AND DEPLOYMENT. 

(a) IN GENERAL.—Section 503 of title 23, United States Code, 

is amended to read as follows: 

‘‘§ 503. Research and technology development and deployment 

‘‘(a) IN GENERAL.—The Secretary shall— 

‘‘(1) carry out research, development, and deployment activities that encompass the entire innovation lifecycle; and 

‘‘(2) ensure that all research carried out under this section 

aligns with the transportation research and development strategic plan of the Secretary under section 508. 

‘‘(b) HIGHWAY RESEARCH AND DEVELOPMENT PROGRAM.— 

‘‘(1) OBJECTIVES.—In carrying out the highway research 

and development program, the Secretary, to address current 

and emerging highway transportation needs, shall— 

‘‘(A) identify research topics; 

‘‘(B) coordinate research and development activities; 

‘‘(C) carry out research, testing, and evaluation activities; and 

‘‘(D) provide technology transfer and technical assistance. 

‘‘(2) IMPROVING HIGHWAY SAFETY.— 

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spective to establish and implement systematic measures to 

improve highway safety. 

‘‘(B) OBJECTIVES.—In carrying out this paragraph, the 

Secretary shall carry out research and development activities— 

‘‘(i) to achieve greater long-term safety gains; 

‘‘(ii) to reduce the number of fatalities and serious 

injuries on public roads; 

‘‘(iii) to fill knowledge gaps that limit the effectiveness of research; 

‘‘(iv) to support the development and implementation of State strategic highway safety plans; 

‘‘(v) to advance improvements in, and use of, performance prediction analysis for decisionmaking; and 

‘‘(vi) to expand technology transfer to partners and 

stakeholders. 

‘‘(C) CONTENTS.—Research and technology activities 

carried out under this paragraph may include— 

‘‘(i) safety assessments and decisionmaking tools; 

‘‘(ii) data collection and analysis; 

‘‘(iii) crash reduction projections; 

‘‘(iv) low-cost safety countermeasures; 

‘‘(v) innovative operational improvements and designs of roadway and roadside features; 

‘‘(vi) evaluation of countermeasure costs and benefits; 

‘‘(vii) development of tools for projecting impacts of 

safety countermeasures; 

‘‘(viii) rural road safety measures; 

‘‘(ix) safety measures for vulnerable road users, including bicyclists and pedestrians; 

‘‘(x) safety policy studies; 

‘‘(xi) human factors studies and measures; 

‘‘(xii) safety technology deployment; 

‘‘(xiii) safety workforce professional capacity building initiatives; 

‘‘(xiv) safety program and process improvements; 

and 

‘‘(xv) tools and methods to enhance safety performance, including achievement of statewide safety performance targets. 

‘‘(3) IMPROVING INFRASTRUCTURE INTEGRITY.— 

‘‘(A) IN GENERAL.—The Secretary shall carry out and 

facilitate highway and bridge infrastructure research and 

development activities— 

‘‘(i) to maintain infrastructure integrity; 

‘‘(ii) to meet user needs; and 

‘‘(iii) to link Federal transportation investments to 

improvements in system performance. 

‘‘(B) OBJECTIVES.—In carrying out this paragraph, the 

Secretary shall carry out research and development activities— 

‘‘(i) to reduce the number of fatalities attributable 

to infrastructure design characteristics and work zones; 


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‘‘(ii) to improve the safety and security of highway 

infrastructure; 

‘‘(iii) to increase the reliability of lifecycle performance predictions used in infrastructure design, construction, and management; 

‘‘(iv) to improve the ability of transportation agencies to deliver projects that meet expectations for timeliness, quality, and cost; 

‘‘(v) to reduce user delay attributable to infrastructure system performance, maintenance, rehabilitation, 

and construction; 

‘‘(vi) to improve highway condition and performance through increased use of design, materials, construction, and maintenance innovations; 

‘‘(vii) to reduce the environmental impacts of highway infrastructure through innovations in design, construction, operation, preservation, and maintenance; 

and 

‘‘(viii) to study vulnerabilities of the transportation 

system to seismic activities and extreme events and 

methods to reduce those vulnerabilities. 

‘‘(C) CONTENTS.—Research and technology activities 

carried out under this paragraph may include— 

‘‘(i) long-term infrastructure performance programs 

addressing pavements, bridges, tunnels, and other 

structures; 

‘‘(ii) short-term and accelerated studies of infrastructure performance; 

‘‘(iii) research to develop more durable infrastructure materials and systems; 

‘‘(iv) advanced infrastructure design methods; 

‘‘(v) accelerated highway and bridge construction; 

‘‘(vi) performance-based specifications; 

‘‘(vii) construction and materials quality assurance; 

‘‘(viii) comprehensive and integrated infrastructure 

asset management; 

‘‘(ix) infrastructure safety assurance; 

‘‘(x) sustainable infrastructure design and construction; 

‘‘(xi) infrastructure rehabilitation and preservation 

techniques, including techniques to rehabilitate and 

preserve historic infrastructure; 

‘‘(xii) hydraulic, geotechnical, and aerodynamic aspects of infrastructure; 

‘‘(xiii) improved highway construction technologies 

and practices; 

‘‘(xiv) improved tools, technologies, and models for 

infrastructure management, including assessment and 

monitoring of infrastructure condition; 

‘‘(xv) studies to improve flexibility and resiliency of 

infrastructure systems to withstand climate variability; 

‘‘(xvi) studies on the effectiveness of fiber-based additives to improve the durability of surface transportation materials in various geographic regions; 


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‘‘(xvii) studies of infrastructure resilience and other 

adaptation measures; 

‘‘(xviii) maintenance of seismic research activities, 

including research carried out in conjunction with 

other Federal agencies to study the vulnerability of the 

transportation system to seismic activity and methods 

to reduce that vulnerability; and 

‘‘(xix) technology transfer and adoption of permeable, pervious, or porous paving materials, practices, and systems that are designed to minimize environmental impacts, stormwater runoff, and flooding 

and to treat or remove pollutants by allowing 

stormwater to infiltrate through the pavement in a 

manner similar to predevelopment hydrologic conditions. 

‘‘(D) LIFECYCLE COSTS ANALYSIS STUDY.— 

‘‘(i) IN GENERAL.—In this subparagraph, the term 

‘lifecycle costs analysis’ means a process for evaluating 

the total economic worth of a usable project segment by 

analyzing initial costs and discounted future costs, 

such as maintenance, user, reconstruction, rehabilitation, restoring, and resurfacing costs, over the life of 

the project segment. 

‘‘(ii) STUDY.—The Comptroller General shall conduct a study of the best practices for calculating 

lifecycle costs and benefits for federally funded highway projects, which shall include, at a minimum, a 

thorough literature review and a survey of current 

lifecycle cost practices of State departments of transportation. 

‘‘(iii) CONSULTATION.—In carrying out the study, 

the Comptroller shall consult with, at a minimum— 

‘‘(I) the American Association of State Highway and Transportation Officials; 

‘‘(II) appropriate experts in the field of lifecycle 

cost analysis; and 

‘‘(III) appropriate industry experts and research centers. 

‘‘(E) REPORT.—Not later than 1 year after the date of 

enactment of the Transportation Research and Innovative 

Technology Act of 2012, the Comptroller General shall submit to the Committee on Environment and Public Works of 

the Senate and the Committees on Transportation and Infrastructure and Science, Space, and Technology of the 

House of Representatives a report on the results of the 

study which shall include— 

‘‘(i) a summary of the latest research on lifecycle 

cost analysis; and 

‘‘(ii) recommendations on the appropriate— 

‘‘(I) period of analysis; 

‘‘(II) design period; 

‘‘(III) discount rates; and 

‘‘(IV) use of actual material life and maintenance cost data. 


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‘‘(4) STRENGTHENING TRANSPORTATION PLANNING AND ENVIRONMENTAL DECISIONMAKING.— 

‘‘(A) IN GENERAL.—The Secretary may carry out research— 

‘‘(i) to minimize the cost of transportation planning 

and environmental decisionmaking processes; 

‘‘(ii) to improve transportation planning and environmental decisionmaking processes; and 

‘‘(iii) to minimize the potential impact of surface 

transportation on the environment. 

‘‘(B) OBJECTIVES.—In carrying out this paragraph the 

Secretary may carry out research and development activities— 

‘‘(i) to minimize the cost of highway infrastructure 

and operations; 

‘‘(ii) to reduce the potential impact of highway infrastructure and operations on the environment; 

‘‘(iii) to advance improvements in environmental 

analyses and processes and context sensitive solutions 

for transportation decisionmaking; 

‘‘(iv) to improve construction techniques; 

‘‘(v) to accelerate construction to reduce congestion 

and related emissions; 

‘‘(vi) to reduce the impact of highway runoff on the 

environment; 

‘‘(vii) to improve understanding and modeling of 

the factors that contribute to the demand for transportation; and 

‘‘(viii) to improve transportation planning decisionmaking and coordination. 

‘‘(C) CONTENTS.—Research and technology activities 

carried out under this paragraph may include— 

‘‘(i) creation of models and tools for evaluating 

transportation measures and transportation system designs, including the costs and benefits; 

‘‘(ii) congestion reduction efforts; 

‘‘(iii) transportation and economic development 

planning in rural areas and small communities; 

‘‘(iv) improvement of State, local, and tribal government capabilities relating to surface transportation 

planning and the environment; and 

‘‘(v) streamlining of project delivery processes. 

‘‘(5) REDUCING CONGESTION, IMPROVING HIGHWAY OPERATIONS, AND ENHANCING FREIGHT PRODUCTIVITY.— 

‘‘(A) IN GENERAL.—The Secretary shall carry out research under this paragraph with the goals of— 

‘‘(i) addressing congestion problems; 

‘‘(ii) reducing the costs of congestion; 

‘‘(iii) improving freight movement; 

‘‘(iv) increasing productivity; and 

‘‘(v) improving the economic competitiveness of the 

United States. 

‘‘(B) OBJECTIVES.—In carrying out this paragraph, the 

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ties to identify, develop, and assess innovations that have 

the potential— 

‘‘(i) to reduce traffic congestion; 

‘‘(ii) to improve freight movement; and 

‘‘(iii) to reduce freight-related congestion throughout the transportation network. 

‘‘(C) CONTENTS.—Research and technology activities 

carried out under this paragraph may include— 

‘‘(i) active traffic and demand management; 

‘‘(ii) acceleration of the implementation of Intelligent Transportation Systems technology; 

‘‘(iii) advanced transportation concepts and analysis; 

‘‘(iv) arterial management and traffic signal operation; 

‘‘(v) congestion pricing; 

‘‘(vi) corridor management; 

‘‘(vii) emergency operations; 

‘‘(viii) research relating to enabling technologies 

and applications; 

‘‘(ix) freeway management; 

‘‘(x) evaluation of enabling technologies; 

‘‘(xi) impacts of vehicle size and weight on congestion; 

‘‘(xii) freight operations and technology; 

‘‘(xiii) operations and freight performance measurement and management; 

‘‘(xiv) organization and planning for operations; 

‘‘(xv) planned special events management; 

‘‘(xvi) real-time transportation information; 

‘‘(xvii) road weather management; 

‘‘(xviii) traffic and freight data and analysis tools; 

‘‘(xix) traffic control devices; 

‘‘(xx) traffic incident management; 

‘‘(xxi) work zone management; 

‘‘(xxii) communication of travel, roadway, and 

emergency information to persons with disabilities; 

‘‘(xxiii) research on enhanced mode choice and 

intermodal connectivity; 

‘‘(xxiv) techniques for estimating and quantifying 

public benefits derived from freight transportation 

projects; and 

‘‘(xxv) other research areas to identify and address 

emerging needs related to freight transportation by all 

modes. 

‘‘(6) EXPLORATORY ADVANCED RESEARCH.—The Secretary 

shall carry out research and development activities relating to 

exploratory advanced research— 

‘‘(A) to leverage the targeted capabilities of the TurnerFairbank Highway Research Center to develop technologies 

and innovations of national importance; and 

‘‘(B) to develop potentially transformational solutions 

to improve the durability, efficiency, environmental impact, 

productivity, and safety aspects of highway and intermodal 

transportation systems. 


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‘‘(7) TURNER-FAIRBANK HIGHWAY RESEARCH CENTER.— ‘‘(A) IN GENERAL.—The Secretary shall continue to operate in the Federal Highway Administration a TurnerFairbank Highway Research Center. 

‘‘(B) USES OF THE CENTER.—The Turner-Fairbank 

Highway Research Center shall support— 

‘‘(i) the conduct of highway research and development relating to emerging highway technology; 

‘‘(ii) the development of understandings, tools, and 

techniques that provide solutions to complex technical 

problems through the development of economical and 

environmentally sensitive designs, efficient and qualitycontrolled construction practices, and durable materials; 

‘‘(iii) the development of innovative highway products and practices; and 

‘‘(iv) the conduct of long-term, high-risk research to 

improve the materials used in highway infrastructure. 

‘‘(8) INFRASTRUCTURE INVESTMENT NEEDS REPORT.— 

‘‘(A) IN GENERAL.—Not later than July 31, 2013, and 

July 31 of every second year thereafter, the Secretary shall 

submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on 

Environment and Public Works of the Senate a report that 

describes estimates of the future highway and bridge needs 

of the United States and the backlog of current highway 

and bridge needs. 

‘‘(B) COMPARISONS.—Each report under subparagraph 

(A) shall include all information necessary to relate and 

compare the conditions and service measures used in the 

previous biennial reports to conditions and service measures used in the current report. 

‘‘(C) INCLUSIONS.—Each report under subparagraph 

(A) shall provide recommendations to Congress on changes 

to the highway performance monitoring system that address— 

‘‘(i) improvements to the quality and standardization of data collection on all functional classifications 

of Federal-aid highways for accurate system length, 

lane length, and vehicle-mile of travel; and 

‘‘(ii) changes to the reporting requirements authorized under section 315, to reflect recommendations 

under this paragraph for collection, storage, analysis, 

reporting, and display of data for Federal-aid highways and, to the maximum extent practical, all public 

roads. 

‘‘(c) TECHNOLOGY AND INNOVATION DEPLOYMENT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall carry out a technology and innovation deployment program relating to all aspects of highway transportation, including planning, financing, 

operation, structures, materials, pavements, environment, construction, and the duration of time between project planning 

and project delivery, with the goals of— 

‘‘(A) significantly accelerating the adoption of innovative technologies by the surface transportation community; 


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‘‘(B) providing leadership and incentives to demonstrate and promote state-of-the-art technologies, elevated 

performance standards, and new business practices in 

highway construction processes that result in improved 

safety, faster construction, reduced congestion from construction, and improved quality and user satisfaction; 

‘‘(C) constructing longer-lasting highways through the 

use of innovative technologies and practices that lead to 

faster construction of efficient and safe highways and 

bridges; 

‘‘(D) improving highway efficiency, safety, mobility, reliability, service life, environmental protection, and sustainability; and 

‘‘(E) developing and deploying new tools, techniques, 

and practices to accelerate the adoption of innovation in all 

aspects of highway transportation. 

‘‘(2) IMPLEMENTATION.— 

‘‘(A) IN GENERAL.—The Secretary shall promote, facilitate, and carry out the program established under paragraph (1) to distribute the products, technologies, tools, 

methods, or other findings that result from highway research and development activities, including research and 

development activities carried out under this chapter. 

‘‘(B) ACCELERATED INNOVATION DEPLOYMENT.—In carrying out the program established under paragraph (1), the 

Secretary shall— 

‘‘(i) establish and carry out demonstration programs; 

‘‘(ii) provide technical assistance, and training to 

researchers and developers; and 

‘‘(iii) develop improved tools and methods to accelerate the adoption of proven innovative practices and 

technologies as standard practices. 

‘‘(C) IMPLEMENTATION OF FUTURE STRATEGIC HIGHWAY

RESEARCH PROGRAM FINDINGS AND RESULTS.— ‘‘(i) IN GENERAL.—The Secretary, in consultation 

with the American Association of State Highway and 

Transportation Officials and the Transportation Research Board of the National Academy of Sciences, 

shall promote research results and products developed 

under the future strategic highway research program 

administered by the Transportation Research Board of 

the National Academy of Sciences. 

‘‘(ii) BASIS FOR FINDINGS.—The activities carried 

out under this subparagraph shall be based on the report submitted to Congress by the Transportation Research Board of the National Academy of Sciences 

under section 510(e). 

‘‘(iii) PERSONNEL.—The Secretary may use funds 

made available to carry out this subsection for administrative costs under this subparagraph. 

‘‘(3) ACCELERATED IMPLEMENTATION AND DEPLOYMENT OF

PAVEMENT TECHNOLOGIES.— 

‘‘(A) IN GENERAL.—The Secretary shall establish and 

implement a program under the technology and innovation 


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deployment program to promote, implement, deploy, demonstrate, showcase, support, and document the application 

of innovative pavement technologies, practices, performance, and benefits. 

‘‘(B) GOALS.—The goals of the accelerated implementation and deployment of pavement technologies program 

shall include— 

‘‘(i) the deployment of new, cost-effective designs, 

materials, recycled materials, and practices to extend 

the pavement life and performance and to improve user 

satisfaction; 

‘‘(ii) the reduction of initial costs and lifecycle costs 

of pavements, including the costs of new construction, 

replacement, maintenance, and rehabilitation; 

‘‘(iii) the deployment of accelerated construction 

techniques to increase safety and reduce construction 

time and traffic disruption and congestion; 

‘‘(iv) the deployment of engineering design criteria 

and specifications for new and efficient practices, products, and materials for use in highway pavements; 

‘‘(v) the deployment of new nondestructive and 

real-time pavement evaluation technologies and construction techniques; and 

‘‘(vi) effective technology transfer and information 

dissemination to accelerate implementation of new 

technologies and to improve life, performance, cost effectiveness, safety, and user satisfaction. 

‘‘(C) FUNDING.—The Secretary shall obligate for each of 

fiscal years 2013 through 2014 from funds made available 

to carry out this subsection $12,000,000 to accelerate the 

deployment and implementation of pavement technology.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by striking the item relating to section 503 and inserting the following: 

‘‘503. Research and technology development and deployment.’’. 

SEC. 52004. TRAINING AND EDUCATION. 

Section 504 of title 23, United States Code, is amended— 

(1) in subsection (a)— 

(A) in paragraph (2)(A) by inserting ‘‘and the employees 

of any other applicable Federal agency’’ before the semicolon at the end; and 

(B) in paragraph (3)(A)(ii)(V) by striking ‘‘expediting’’ 

and inserting ‘‘reducing the amount of time required for’’; 

(2) in subsection (b) by striking paragraph (3) and inserting 

the following: 

‘‘(3) FEDERAL SHARE.— 

‘‘(A) LOCAL TECHNICAL ASSISTANCE CENTERS.— 

‘‘(i) IN GENERAL.—Subject to subparagraph (B), the 

Federal share of the cost of an activity carried out by 

a local technical assistance center under paragraphs 

(1) and (2) shall be 50 percent. 

‘‘(ii) NON-FEDERAL SHARE.—The non-Federal share 

of the cost of an activity described in clause (i) may 

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section (e) or section 505, up to 100 percent of the nonFederal share. 

‘‘(B) TRIBAL TECHNICAL ASSISTANCE CENTERS.—The 

Federal share of the cost of an activity carried out by a tribal technical assistance center under paragraph (2)(D)(ii) 

shall be 100 percent.’’; 

(3) in subsection (c)(2)— 

(A) by striking ‘‘The Secretary’’ and inserting the following: 

‘‘(A) IN GENERAL.—The Secretary’’; 

(B) in subparagraph (A) (as designated by subparagraph (A)) by striking ‘‘. The program’’ and inserting ‘‘, 

which program’’; and 

(C) by adding at the end the following: 

‘‘(B) USE OF AMOUNTS.—Amounts provided to institutions of higher education to carry out this paragraph shall 

be used to provide direct support of student expenses.’’; 

(4) in subsection (e)— 

(A) in paragraph (1)— 

(i) in the matter preceding subparagraph (A) by 

striking ‘‘sections 104(b)(1), 104(b)(2), 104(b)(3), 

104(b)(4), and 144(e)’’ and inserting ‘‘paragraphs (1) 

through (4) of section 104(b)’’; 

(ii) in subparagraph (D) by striking ‘‘and’’ at the 

end; 

(iii) in subparagraph (E) by striking the period 

and inserting a semicolon; and 

(iv) by adding at the end the following: 

‘‘(F) activities carried out by the National Highway Institute under subsection (a); and 

‘‘(G) local technical assistance programs under subsection (b).’’; and 

(B) in paragraph (2) by inserting ‘‘, except for activities 

carried out under paragraph (1)(G), for which the Federal 

share shall be 50 percent’’ before the period at the end; 

(5) in subsection (f) in the heading, by striking ‘‘PILOT’’; 

(6) in subsection (g)(4)(F) by striking ‘‘excellence’’ and inserting ‘‘stewardship’’; and 

(7) by adding at the end the following: 

‘‘(h) CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.— 

‘‘(1) IN GENERAL.—The Secretary shall make grants under 

this section to establish and maintain centers for surface transportation excellence. 

‘‘(2) GOALS.—The goals of a center referred to in paragraph 

(1) shall be to promote and support strategic national surface 

transportation programs and activities relating to the work of 

State departments of transportation in the areas of environment, surface transportation safety, rural safety, and project finance. 

‘‘(3) ROLE OF THE CENTERS.—To achieve the goals set forth 

in paragraph (2), any centers established under paragraph (1) 

shall provide technical assistance, information sharing of best 

practices, and training in the use of tools and decisionmaking 

processes that can assist States in effectively implementing surface transportation programs, projects, and policies. 


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‘‘(4) PROGRAM ADMINISTRATION.— 

‘‘(A) COMPETITION.—A party entering into a contract, 

cooperative agreement, or other transaction with the Secretary under this subsection, or receiving a grant to perform research or provide technical assistance under this 

subsection, shall be selected on a competitive basis. 

‘‘(B) STRATEGIC PLAN.—The Secretary shall require 

each center to develop a multiyear strategic plan, that— 

‘‘(i) is submitted to the Secretary at such time as 

the Secretary requires; and 

‘‘(ii) describes— 

‘‘(I) the activities to be undertaken by the center; and 

‘‘(II) how the work of the center will be coordinated with the activities of the Federal Highway 

Administration and the various other research, development, and technology transfer activities authorized under this chapter.’’. 

SEC. 52005. STATE PLANNING AND RESEARCH. 

Section 505 of title 23, United States Code, is amended— 

(1) in subsection (a)— 

(A) in the matter preceding paragraph (1) by striking 

‘‘section 104 (other than sections 104(f) and 104(h)) and 

under section 144’’ and inserting ‘‘paragraphs (1) through 

(4) of section 104(b)’’; and 

(B) in paragraph (3) by striking ‘‘under section 303’’ 

and inserting ‘‘, plans, and processes under sections 119, 

148, 149, and 167’’; 

(2) by redesignating subsections (c) and (d) as subsections 

(d) and (e), respectively; 

(3) by inserting after subsection (b) the following: 

‘‘(c) IMPLEMENTATION OF FUTURE STRATEGIC HIGHWAY RESEARCH PROGRAM FINDINGS AND RESULTS.— 

‘‘(1) FUNDS.—A State shall make available to the Secretary 

to carry out section 503(c)(2)(C) a percentage of funds subject to 

subsection (a) that are apportioned to that State, that is agreed 

to by 3⁄4 of States for each of fiscal years 2013 and 2014. 

‘‘(2) TREATMENT OF FUNDS.—Funds expended under paragraph (1) shall not be considered to be part of the extramural 

budget of the agency for the purpose of section 9 of the Small 

Business Act (15 U.S.C. 638).’’; and 

(4) in subsection (e) (as so redesignated) by striking ‘‘section 

118(b)(2)’’ and inserting ‘‘section 118(b)’’. 

SEC. 52006. INTERNATIONAL HIGHWAY TRANSPORTATION PROGRAM. 

(a) IN GENERAL.—Section 506 of title 23, United States Code, 

is repealed. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by striking the item relating to section 506. 

SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE RESEARCH PROGRAM. 

(a) IN GENERAL.—Section 507 of title 23, United States Code, 

is repealed. 


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(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by striking the item relating to section 507. 

SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH. 

(a) IN GENERAL.—Section 509 of title 23, United States Code, 

is repealed. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by striking the item relating to section 509. 

SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM. 

(a) IN GENERAL.—Section 5505 of title 49, United States Code, 

is amended to read as follows: 

‘‘§ 5505. University transportation centers program 

‘‘(a) UNIVERSITY TRANSPORTATION CENTERS PROGRAM.— 

‘‘(1) ESTABLISHMENT AND OPERATION.—The Secretary shall 

make grants under this section to eligible nonprofit institutions 

of higher education to establish and operate university transportation centers. 

‘‘(2) ROLE OF CENTERS.—The role of each university transportation center referred to in paragraph (1) shall be— 

‘‘(A) to advance transportation expertise and technology 

in the varied disciplines that comprise the field of transportation through education, research, and technology transfer 

activities; 

‘‘(B) to provide for a critical transportation knowledge 

base outside of the Department of Transportation; and 

‘‘(C) to address critical workforce needs and educate the 

next generation of transportation leaders. 

‘‘(b) COMPETITIVE SELECTION PROCESS.— 

‘‘(1) APPLICATIONS.—To receive a grant under this section, 

a nonprofit institution of higher education shall submit to the 

Secretary an application that is in such form and contains such 

information as the Secretary may require. 

‘‘(2) RESTRICTION.—A nonprofit institution of higher education or the lead institution of a consortium of nonprofit institutions of higher education, as applicable, that receives a grant 

for a national transportation center or a regional transportation 

center in a fiscal year shall not be eligible to receive as a lead 

institution or member of a consortium an additional grant in 

that fiscal year for a national transportation center or a regional transportation center. 

‘‘(3) COORDINATION.—The Secretary shall solicit grant applications for national transportation centers, regional transportation centers, and Tier 1 university transportation centers 

with identical advertisement schedules and deadlines. 

‘‘(4) GENERAL SELECTION CRITERIA.— 

‘‘(A) IN GENERAL.—Except as otherwise provided by this 

section, the Secretary shall award grants under this section 

in nonexclusive candidate topic areas established by the 

Secretary that address the research priorities identified in 

section 503 of title 23. 

‘‘(B) CRITERIA.—The Secretary, in consultation as appropriate with the Administrators of the Federal Highway 


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Administration and the Federal Transit Administration, 

shall select each recipient of a grant under this section 

through a competitive process based on the assessment of 

the Secretary relating to— 

‘‘(i) the demonstrated ability of the recipient to address each specific topic area described in the research 

and strategic plans of the recipient; 

‘‘(ii) the demonstrated research, technology transfer, and education resources available to the recipient 

to carry out this section; 

‘‘(iii) the ability of the recipient to provide leadership in solving immediate and long-range national and 

regional transportation problems; 

‘‘(iv) the ability of the recipient to carry out research, education, and technology transfer activities 

that are multimodal and multidisciplinary in scope; 

‘‘(v) the demonstrated commitment of the recipient 

to carry out transportation workforce development programs through— 

‘‘(I) degree-granting programs; and 

‘‘(II) outreach activities to attract new entrants 

into the transportation field; 

‘‘(vi) the demonstrated ability of the recipient to 

disseminate results and spur the implementation of 

transportation research and education programs 

through national or statewide continuing education 

programs; 

‘‘(vii) the demonstrated commitment of the recipient to the use of peer review principles and other research best practices in the selection, management, and 

dissemination of research projects; 

‘‘(viii) the strategic plan submitted by the recipient 

describing the proposed research to be carried out by 

the recipient and the performance metrics to be used in 

assessing the performance of the recipient in meeting 

the stated research, technology transfer, education, and 

outreach goals; and 

‘‘(ix) the ability of the recipient to implement the 

proposed program in a cost-efficient manner, such as 

through cost sharing and overall reduced overhead, facilities, and administrative costs. 

‘‘(5) TRANSPARENCY.— 

‘‘(A) IN GENERAL.—The Secretary shall provide to each 

applicant, upon request, any materials, including copies of 

reviews (with any information that would identify a reviewer redacted), used in the evaluation process of the proposal of the applicant. 

‘‘(B) REPORTS.—The Secretary shall submit to the Committees on Transportation and Infrastructure and Science, 

Space, and Technology of the House of Representatives and 

the Committee on Environment and Public Works of the 

Senate a report describing the overall review process under 

paragraph (3) that includes— 

‘‘(i) specific criteria of evaluation used in the review; 


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‘‘(ii) descriptions of the review process; and 

‘‘(iii) explanations of the selected awards. 

‘‘(6) OUTSIDE STAKEHOLDERS.—The Secretary shall, to the 

maximum extent practicable, consult external stakeholders such 

as the Transportation Research Board of the National Academy 

of Sciences to evaluate and competitively review all proposals. 

‘‘(c) GRANTS.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date of 

enactment of the Transportation Research and Innovative Technology Act of 2012, the Secretary, in consultation as appropriate 

with the Administrators of the Federal Highway Administration and the Federal Transit Administration, shall select grant 

recipients under subsection (b) and make grant amounts available to the selected recipients. 

‘‘(2) NATIONAL TRANSPORTATION CENTERS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall provide grants to 5 recipients that the Secretary determines best meet the criteria described in subsection (b)(3). 

‘‘(B) RESTRICTIONS.— 

‘‘(i) IN GENERAL.—For each fiscal year, a grant 

made available under this paragraph shall be 

$3,000,000 per recipient. 

‘‘(ii) FOCUSED RESEARCH.—The grant recipients 

under this paragraph shall focus research on national 

transportation issues, as determined by the Secretary. 

‘‘(C) MATCHING REQUIREMENT.— 

‘‘(i) IN GENERAL.—As a condition of receiving a 

grant under this paragraph, a grant recipient shall 

match 100 percent of the amounts made available 

under the grant. 

‘‘(ii) SOURCES.—The matching amounts referred to 

in clause (i) may include amounts made available to 

the recipient under section 504(b) or 505 of title 23. 

‘‘(3) REGIONAL UNIVERSITY TRANSPORTATION CENTERS.— 

‘‘(A) LOCATION OF REGIONAL CENTERS.—One regional 

university transportation center shall be located in each of 

the 10 Federal regions that comprise the Standard Federal 

Regions established by the Office of Management and 

Budget in the document entitled ‘Standard Federal Regions’ and dated April, 1974 (circular A-105). 

‘‘(B) SELECTION CRITERIA.—In conducting a competition under subsection (b), the Secretary shall provide grants 

to 10 recipients on the basis of— 

‘‘(i) the criteria described in subsection (b)(3); 

‘‘(ii) the location of the center within the Federal 

region to be served; and 

‘‘(iii) whether the institution (or, in the case of consortium of institutions, the lead institution) demonstrates that the institution has a well-established, 

nationally recognized program in transportation research and education, as evidenced by— 

‘‘(I) recent expenditures by the institution in 

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‘‘(II) a historical track record of awarding 

graduate degrees in professional fields closely related to highways and public transportation; and 

‘‘(III) an experienced faculty who specialize in 

professional fields closely related to highways and 

public transportation. 

‘‘(C) RESTRICTIONS.—For each fiscal year, a grant 

made available under this paragraph shall be $2,750,000 

for each recipient. 

‘‘(D) MATCHING REQUIREMENTS.— 

‘‘(i) IN GENERAL.—As a condition of receiving a 

grant under this paragraph, a grant recipient shall 

match 100 percent of the amounts made available 

under the grant. 

‘‘(ii) SOURCES.—The matching amounts referred to 

in the clause (i) may include amounts made available 

to the recipient under section 504(b) or 505 of title 23. 

‘‘(E) FOCUSED RESEARCH.—The Secretary shall make a 

grant to 1 of the 10 regional university transportation centers established under this paragraph for the purpose of 

furthering the objectives described in subsection (a)(2) in 

the field of comprehensive transportation safety. 

‘‘(4) TIER 1 UNIVERSITY TRANSPORTATION CENTERS.— 

‘‘(A) IN GENERAL.—The Secretary shall provide grants 

of $1,500,000 each to not more than 20 recipients to carry 

out this paragraph. 

‘‘(B) RESTRICTION.—A lead institution of a consortium 

that receives a grant under paragraph (2) or (3) shall not 

be eligible to receive a grant under this paragraph. 

‘‘(C) MATCHING REQUIREMENT.— 

‘‘(i) IN GENERAL.—Subject to clause (iii), as a condition of receiving a grant under this paragraph, a 

grant recipient shall match 50 percent of the amounts 

made available under the grant. 

‘‘(ii) SOURCES.—The matching amounts referred to 

in clause (i) may include amounts made available to 

the recipient under section 504(b) or 505 of title 23. 

‘‘(iii) EXEMPTION.—This subparagraph shall not 

apply on a demonstration of financial hardship by the 

applicant institution. 

‘‘(D) FOCUSED RESEARCH.—In awarding grants under 

this paragraph, consideration shall be given to minority institutions, as defined by section 365 of the Higher Education Act of 1965 (20 U.S.C. 1067k), or consortia that include such institutions that have demonstrated an ability 

in transportation-related research. 

‘‘(d) PROGRAM COORDINATION.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) coordinate the research, education, and technology 

transfer activities carried out by grant recipients under this 

section; and 

‘‘(B) disseminate the results of that research through 

the establishment and operation of an information clearinghouse. 


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‘‘(2) ANNUAL REVIEW AND EVALUATION.—Not less frequently 

than annually, and consistent with the plan developed under 

section 508 of title 23, the Secretary shall— 

‘‘(A) review and evaluate the programs carried out 

under this section by grant recipients; and 

‘‘(B) submit to the Committees on Transportation and 

Infrastructure and Science, Space, and Technology of the 

House of Representatives and the Committee on Environment and Public Works of the Senate a report describing 

that review and evaluation. 

‘‘(3) PROGRAM EVALUATION AND OVERSIGHT.—For each of 

fiscal years 2013 and 2014, the Secretary shall expend not more 

than 11⁄2 percent of the amounts made available to the Secretary to carry out this section for any coordination, evaluation, 

and oversight activities of the Secretary under this section. 

‘‘(e) LIMITATION ON AVAILABILITY OF AMOUNTS.—Amounts made 

available to the Secretary to carry out this section shall remain 

available for obligation by the Secretary for a period of 3 years after 

the last day of the fiscal year for which the amounts are appropriated. 

‘‘(f) INFORMATION COLLECTION.—Any survey, questionnaire, or 

interview that the Secretary determines to be necessary to carry out 

reporting requirements relating to any program assessment or evaluation activity under this section, including customer satisfaction 

assessments, shall not be subject to chapter 35 of title 44.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 55 of 

title 49, United States Code, is amended by striking the item relating to section 5505 and inserting the following: 

‘‘5505. University transportation centers program.’’. 

SEC. 52010. UNIVERSITY TRANSPORTATION RESEARCH. 

(a) IN GENERAL.—Section 5506 of title 49, United States Code, 

is repealed. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 55 of 

title 49, United States Code, is amended by striking the item relating to section 5506. 

SEC. 52011. BUREAU OF TRANSPORTATION STATISTICS. 

(a) IN GENERAL.—Subtitle III of title 49, United States Code, is 

amended by adding at the end the following: 

‘‘CHAPTER 63—BUREAU OF TRANSPORTATION 

STATISTICS 

‘‘Sec. 

‘‘6301. Definitions. 

‘‘6302. Bureau of Transportation Statistics. 

‘‘6303. Intermodal transportation database. 

‘‘6304. National Transportation Library. 

‘‘6305. Advisory council on transportation statistics. 

‘‘6306. Transportation statistical collection, analysis, and dissemination. 

‘‘6307. Furnishing of information, data, or reports by Federal agencies. 

‘‘6308. Proceeds of data product sales. 

‘‘6309. National transportation atlas database. 

‘‘6310. Limitations on statutory construction. 

‘‘6311. Research and development grants. 

‘‘6312. Transportation statistics annual report. 

‘‘6313. Mandatory response authority for freight data collection. 


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‘‘§ 6301. Definitions 

‘‘In this chapter, the following definitions apply: 

‘‘(1) BUREAU.—The term ‘Bureau’ means the Bureau of 

Transportation Statistics established by section 6302(a). 

‘‘(2) DEPARTMENT.—The term ‘Department’ means the Department of Transportation. 

‘‘(3) DIRECTOR.—The term ‘Director’ means the Director of 

the Bureau. 

‘‘(4) LIBRARY.—The term ‘Library’ means the National 

Transportation Library established by section 6304(a). 

‘‘(5) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Transportation. 

‘‘§ 6302. Bureau of Transportation Statistics 

‘‘(a) ESTABLISHMENT.—There is established in the Research and 

Innovative Technology Administration the Bureau of Transportation 

Statistics. 

‘‘(b) DIRECTOR.— 

‘‘(1) APPOINTMENT.—The Bureau shall be headed by a Director, who shall be appointed in the competitive service by the 

Secretary. 

‘‘(2) QUALIFICATIONS.—The Director shall be appointed 

from among individuals who are qualified to serve as the Director by virtue of their training and experience in the collection, 

analysis, and use of transportation statistics. 

‘‘(3) DUTIES.— 

‘‘(A) IN GENERAL.—The Director shall— 

‘‘(i) serve as the senior advisor to the Secretary on 

data and statistics; and 

‘‘(ii) be responsible for carrying out the duties described in subparagraph (B). 

‘‘(B) DUTIES.—The Director shall— 

‘‘(i) ensure that the statistics compiled under clause 

(vi) are designed to support transportation decisionmaking by— 

‘‘(I) the Federal Government; 

‘‘(II) State and local governments; 

‘‘(III) metropolitan planning organizations; 

‘‘(IV) transportation-related associations; 

‘‘(V) the private sector, including the freight 

community; and 

‘‘(VI) the public; 

‘‘(ii) establish on behalf of the Secretary a program— 

‘‘(I) to effectively integrate safety data across 

modes; and 

‘‘(II) to address gaps in existing safety data 

programs of the Department; 

‘‘(iii) work with the operating administrations of 

the Department— 

‘‘(I) to establish and implement the data programs of the Bureau; and 

‘‘(II) to improve the coordination of information collection efforts with other Federal agencies; 


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‘‘(iv) continually improve surveys and data collection methods of the Department to improve the accuracy and utility of transportation statistics; 

‘‘(v) encourage the standardization of data, data 

collection methods, and data management and storage 

technologies for data collected by— 

‘‘(I) the Bureau; 

‘‘(II) the operating administrations of the Department; 

‘‘(III) State and local governments; 

‘‘(IV) metropolitan planning organizations; 

and 

‘‘(V) private sector entities; 

‘‘(vi) collect, compile, analyze, and publish a comprehensive set of transportation statistics on the performance and impacts of the national transportation 

system, including statistics on— 

‘‘(I) transportation safety across all modes and 

intermodally; 

‘‘(II) the state of good repair of United States 

transportation infrastructure; 

‘‘(III) the extent, connectivity, and condition of 

the transportation system, building on the national 

transportation atlas database developed under section 6310; 

‘‘(IV) economic efficiency across the entire 

transportation sector; 

‘‘(V) the effects of the transportation system on 

global and domestic economic competitiveness; 

‘‘(VI) demographic, economic, and other variables influencing travel behavior, including choice 

of transportation mode and goods movement; 

‘‘(VII) transportation-related variables that influence the domestic economy and global competitiveness; 

‘‘(VIII) economic costs and impacts for passenger travel and freight movement; 

‘‘(IX) intermodal and multimodal passenger 

movement; 

‘‘(X) intermodal and multimodal freight movement; and 

‘‘(XI) consequences of transportation for the 

human and natural environment; 

‘‘(vii) build and disseminate the transportation 

layer of the National Spatial Data Infrastructure developed under Executive Order 12906 (59 Fed. Reg. 

17671) (or a successor Executive Order), including by 

coordinating the development of transportation 

geospatial data standards, compiling intermodal 

geospatial data, and collecting geospatial data that is 

not being collected by other entities; 

‘‘(viii) issue guidelines for the collection of information by the Department that the Director determines 

necessary to develop transportation statistics and carry 

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sessment activities to ensure that such information is 

accurate, reliable, relevant, uniform, and in a form 

that permits systematic analysis by the Department; 

‘‘(ix) review and report to the Secretary on the 

sources and reliability of— 

‘‘(I) the statistics proposed by the heads of the 

operating administrations of the Department to 

measure outputs and outcomes as required by the 

Government Performance and Results Act of 1993 

(Public Law 103–62;107 Stat. 285); and 

‘‘(II) at the request of the Secretary, any other 

data collected or statistical information published 

by the heads of the operating administrations of 

the Department; and 

‘‘(x) ensure that the statistics published under this 

section are readily accessible to the public, consistent 

with applicable security constraints and confidentiality 

interests. 

‘‘(c) ACCESS TO FEDERAL DATA.—In carrying out subsection 

(b)(3)(B)(ii), the Director shall be given access to all safety data that 

the Director determines necessary to carry out that subsection that 

is held by the Department or any other Federal agency upon written 

request and subject to any statutory or regulatory restrictions. 

‘‘§ 6303. Intermodal transportation database 

‘‘(a) IN GENERAL.—In consultation with the Under Secretary 

Transportation for Policy, the Assistant Secretaries of the Department, and the heads of the operating administrations of the Department, the Director shall establish and maintain a transportation 

database for all modes of transportation. 

‘‘(b) USE.—The database established under this section shall be 

suitable for analyses carried out by the Federal Government, the 

States, and metropolitan planning organizations. 

‘‘(c) CONTENTS.—The database established under this section 

shall include— 

‘‘(1) information on the volumes and patterns of movement 

of goods, including local, interregional, and international movement, by all modes of transportation, intermodal combinations, 

and relevant classification; 

‘‘(2) information on the volumes and patterns of movement 

of people, including local, interregional, and international 

movements, by all modes of transportation (including bicycle 

and pedestrian modes), intermodal combinations, and relevant 

classification; 

‘‘(3) information on the location and connectivity of transportation facilities and services; and 

‘‘(4) a national accounting of expenditures and capital 

stocks on each mode of transportation and intermodal combination. 

‘‘§ 6304. National Transportation Library 

‘‘(a) PURPOSE AND ESTABLISHMENT.—To support the information management and decisionmaking needs of transportation officials at the Federal, State, and local levels, there is established in 

the Bureau a National Transportation Library which shall— 


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‘‘(1) be headed by an individual who is highly qualified in 

library and information science; 

‘‘(2) acquire, preserve, and manage transportation information and information products and services for use by the Department, other Federal agencies, and the general public; 

‘‘(3) provide reference and research assistance; 

‘‘(4) serve as a central depository for research results and 

technical publications of the Department; 

‘‘(5) provide a central clearinghouse for transportation data 

and information of the Federal Government; 

‘‘(6) serve as coordinator and policy lead for transportation 

information access; 

‘‘(7) provide transportation information and information 

products and services to— 

‘‘(A) the Department; 

‘‘(B) other Federal agencies; 

‘‘(C) public and private organizations; and 

‘‘(D) individuals, within the United States and internationally; 

‘‘(8) coordinate efforts among, and cooperate with, transportation libraries, information providers, and technical assistance 

centers, in conjunction with private industry and other transportation library and information centers, with the goal of developing a comprehensive transportation information and 

knowledge network that supports the activities described in section 6302(b)(3)(B)(vi); and 

‘‘(9) engage in such other activities as the Director determines to be necessary and as the resources of the Library permit. 

‘‘(b) ACCESS.—The Director shall publicize, facilitate, and promote access to the information products and services described in 

subsection (a), to improve the ability of the transportation community to share information and the ability of the Director to make statistics and other information readily accessible as required under 

section 6302(b)(3)(B)(x). 

‘‘(c) AGREEMENTS.— 

‘‘(1) IN GENERAL.—To carry out this section, the Director 

may enter into agreements with, award grants to, and receive 

amounts from, any— 

‘‘(A) State or local government; 

‘‘(B) organization; 

‘‘(C) business; or 

‘‘(D) individual. 

‘‘(2) CONTRACTS, GRANTS, AND AGREEMENTS.—The Library 

may initiate and support specific information and data management, access, and exchange activities in connection with 

matters relating to the Department’s strategic goals, knowledge 

networking, and national and international cooperation, by entering into contracts or other agreements or awarding grants for 

the conduct of such activities. 

‘‘(3) AMOUNTS.—Any amounts received by the Library as 

payment for library products and services or other activities 

shall be made available to the Director to carry out this section, 

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tration’s general fund account, and remain available until expended. 

‘‘§ 6305. Advisory council on transportation statistics 

‘‘(a) IN GENERAL.—The Director shall establish and consult 

with an advisory council on transportation statistics. 

‘‘(b) FUNCTION.—The advisory council established under this 

section shall advise the Director on— 

‘‘(1) the quality, reliability, consistency, objectivity, and relevance of transportation statistics and analyses collected, supported, or disseminated by the Bureau and the Department; 

and 

‘‘(2) methods to encourage cooperation and interoperability 

of transportation data collected by the Bureau, the operating 

administrations of the Department, States, local governments, 

metropolitan planning organizations, and private sector entities. 

‘‘(c) MEMBERSHIP.— ‘‘(1) IN GENERAL.—The advisory council shall be composed 

of not fewer than 9 and not more than 11 members appointed 

by the Director. 

‘‘(2) SELECTION.—In selecting members for the advisory 

council, the Director shall appoint individuals who— 

‘‘(A) are not officers or employees of the United States; 

‘‘(B) possess expertise in— 

‘‘(i) transportation data collection, analysis, or application; 

‘‘(ii) economics; or 

‘‘(iii) transportation safety; and 

‘‘(C) represent a cross section of transportation stakeholders, to the greatest extent possible. 

‘‘(d) TERMS OF APPOINTMENT.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

members of the advisory council shall be appointed to staggered 

terms not to exceed 3 years. 

‘‘(2) ADDITIONAL TERMS.—A member may be renominated 

for 1 additional 3-year term. 

‘‘(3) CURRENT MEMBERS.—A member serving on an advisory council on transportation statistics on the day before the 

date of enactment of the Transportation Research and Innovative Technology Act of 2012 shall serve until the end of the appointed term of the member. 

‘‘(e) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— 

The Federal Advisory Committee Act (5 U.S.C. App.) shall apply to 

the advisory council established under this section, except that section 14 of that Act shall not apply. 

‘‘§ 6306. Transportation statistical collection, analysis, and 

dissemination 

‘‘To ensure that all transportation statistical collection, analysis, and dissemination is carried out in a coordinated manner, the 

Director may— 

‘‘(1) use the services, equipment, records, personnel, information, and facilities of other Federal agencies, or State, local, 

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tions that the applicable agency or instrumentality consents to 

that use and with or without reimbursement for such use; 

‘‘(2) enter into agreements with the agencies and instrumentalities described in paragraph (1) for purposes of data collection and analysis; 

‘‘(3) confer and cooperate with foreign governments, international organizations, and State, municipal, and other local 

agencies; 

‘‘(4) request such information, data, and reports from any 

Federal agency as the Director determines necessary to carry 

out this chapter; 

‘‘(5) encourage replication, coordination, and sharing of information among transportation agencies regarding information systems, information policy, and data; and 

‘‘(6) confer and cooperate with Federal statistical agencies 

as the Director determines necessary to carry out this chapter, 

including by entering into cooperative data sharing agreements 

in conformity with all laws and regulations applicable to the 

disclosure and use of data. 

‘‘§ 6307. Furnishing of information, data, or reports by Federal agencies 

‘‘(a) IN GENERAL.—Except as provided in subsection (b), a Federal agency requested to furnish information, data, or reports by the 

Director under section 6302(b)(3)(B) shall provide the information to 

the Director. 

‘‘(b) PROHIBITION ON CERTAIN DISCLOSURES.— 

‘‘(1) IN GENERAL.—An officer, employee, or contractor of the 

Bureau may not— 

‘‘(A) make any disclosure in which the data provided 

by an individual or organization under section 

6302(b)(3)(B) can be identified; 

‘‘(B) use the information provided under section 

6302(b)(3)(B) for a nonstatistical purpose; or 

‘‘(C) permit anyone other than an individual authorized by the Director to examine any individual report provided under section 6302(b)(3)(B). 

‘‘(2) COPIES OF REPORTS.— 

‘‘(A) IN GENERAL.—No department, bureau, agency, officer, or employee of the United States (except the Director 

in carrying out this chapter) may require, for any reason, 

a copy of any report that has been filed under section 

6302(b)(3)(B) with the Bureau or retained by an individual 

respondent. 

‘‘(B) LIMITATION ON JUDICIAL PROCEEDINGS.—A copy of 

a report described in subparagraph (A) that has been retained by an individual respondent or filed with the Bureau or any of the employees, contractors, or agents of the 

Bureau— 

‘‘(i) shall be immune from legal process; and 

‘‘(ii) shall not, without the consent of the individual concerned, be admitted as evidence or used for 

any purpose in any action, suit, or other judicial or administrative proceedings. 


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‘‘(C) APPLICABILITY.—This paragraph shall apply only 

to reports that permit information concerning an individual 

or organization to be reasonably determined by direct or indirect means. 

‘‘(3) INFORMING RESPONDENT OF USE OF DATA.—If the Bureau is authorized by statute to collect data or information for 

a nonstatistical purpose, the Director shall clearly distinguish 

the collection of the data or information, by rule and on the collection instrument, in a manner that informs the respondent 

who is requested or required to supply the data or information 

of the nonstatistical purpose. 

‘‘(c) TRANSPORTATION AND TRANSPORTATION-RELATED DATA ACCESS.—The Director shall be provided access to any transportation 

and transportation-related information in the possession of any Federal agency, except— 

‘‘(1) information that is expressly prohibited by law from 

being disclosed to another Federal agency; or 

‘‘(2) information that the agency possessing the information 

determines could not be disclosed without significantly impairing the discharge of authorities and responsibilities which have 

been delegated to, or vested by law, in such agency. 

‘‘§ 6308. Proceeds of data product sales 

‘‘Notwithstanding section 3302 of title 31, amounts received by 

the Bureau from the sale of data products for necessary expenses incurred may be credited to the Highway Trust Fund (other than the 

Mass Transit Account) for the purpose of reimbursing the Bureau 

for those expenses. 

‘‘§ 6309. National transportation atlas database 

‘‘(a) IN GENERAL.—The Director shall develop and maintain a 

national transportation atlas database that is comprised of 

geospatial databases that depict— 

‘‘(1) transportation networks; 

‘‘(2) flows of people, goods, vehicles, and craft over the 

transportation networks; and 

‘‘(3) social, economic, and environmental conditions that affect or are affected by the transportation networks. 

‘‘(b) INTERMODAL NETWORK ANALYSIS.—The databases referred 

to in subsection (a) shall be capable of supporting intermodal network analysis. 

‘‘§ 6310. Limitations on statutory construction 

‘‘Nothing in this chapter— 

‘‘(1) authorizes the Bureau to require any other Federal 

agency to collect data; or 

‘‘(2) alters or diminishes the authority of any other officer 

of the Department to collect and disseminate data independently. 

‘‘§ 6311. Research and development grants 

‘‘The Secretary may make grants to, or enter into cooperative 

agreements or contracts with, public and nonprofit private entities 

(including State transportation departments, metropolitan planning 

organizations, and institutions of higher education) for— 


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‘‘(1) investigation of the subjects described in section 

6302(b)(3)(B)(vi); 

‘‘(2) research and development of new methods of data collection, standardization, management, integration, dissemination, interpretation, and analysis; 

‘‘(3) demonstration programs by States, local governments, 

and metropolitan planning organizations to coordinate data 

collection, reporting, management, storage, and archiving to 

simplify data comparisons across jurisdictions; 

‘‘(4) development of electronic clearinghouses of transportation data and related information, as part of the Library; and 

‘‘(5) development and improvement of methods for sharing 

geographic data, in support of the database under section 6310 

and the National Spatial Data Infrastructure developed under 

Executive Order 12906 (59 Fed. Reg. 17671) (or a successor Executive Order). 

‘‘§ 6312. Transportation statistics annual report 

‘‘The Director shall submit to the President and Congress a 

transportation statistics annual report, which shall include— 

‘‘(1) information on the progress of the Director in carrying 

out the duties described in section 6302(b)(3)(B); 

‘‘(2) documentation of the methods used to obtain and ensure the quality of the statistics presented in the report; and 

‘‘(3) any recommendations of the Director for improving 

transportation statistical information. 

‘‘§ 6313. Mandatory response authority for freight data collection 

‘‘(a) FREIGHT DATA COLLECTION.— ‘‘(1) IN GENERAL.—An owner, official, agent, person in 

charge, or assistant to the person in charge of a freight corporation, company, business, institution, establishment, or organization described in paragraph (2) shall be fined in accordance 

with subsection (b) if that individual neglects or refuses, when 

requested by the Director or other authorized officer, employee, 

or contractor of the Bureau to submit data under section 

6302(b)(3)(B)— 

‘‘(A) to answer completely and correctly to the best 

knowledge of that individual all questions relating to the 

corporation, company, business, institution, establishment, 

or other organization; or 

‘‘(B) to make available records or statistics in the official custody of the individual. 

‘‘(2) DESCRIPTION OF ENTITIES.—A freight corporation, company, business, institution, establishment, or organization referred to in paragraph (1) is a corporation, company, business, 

institution, establishment, or organization that— 

‘‘(A) receives Federal funds relating to the freight program; and 

‘‘(B) has consented to be subject to a fine under this 

subsection on— 

‘‘(i) refusal to supply any data requested; or 

‘‘(ii) failure to respond to a written request. 

‘‘(b) FINES.— 


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‘‘(1) IN GENERAL.—Subject to paragraph (2), an individual described in subsection (a) shall be fined not more than $500. 

‘‘(2) WILLFUL ACTIONS.—If an individual willfully gives a 

false answer to a question described in subsection (a)(1), the individual shall be fined not more than $10,000.’’. 

(b) RULES OF CONSTRUCTION.—If the provisions of section 111 

of title 49, United States Code, are transferred to chapter 63 of that 

title, the following rules of construction apply: 

(1) For purposes of determining whether 1 provision of law 

supersedes another based on enactment later in time, a chapter 

63 provision is deemed to have been enacted on the date of enactment of the corresponding section 111 provision. 

(2) A reference to a section 111 provision, including a reference in a regulation, order, or other law, is deemed to refer 

to the corresponding chapter 63 provision. 

(3) A regulation, order, or other administrative action in effect under a section 111 provision continues in effect under the 

corresponding chapter 63 provision. 

(4) An action taken or an offense committed under a section 

111 provision is deemed to have been taken or committed under 

the corresponding chapter 63 provision. 

(c) CONFORMING AMENDMENTS.— (1) REPEAL.—Section 111 of title 49, United States Code, is 

repealed, and the item relating to section 111 in the analysis for 

chapter 1 of that title is deleted. 

(2) ANALYSIS FOR SUBTITLE III.—The analysis for subtitle 

III of title 49, United States Code, is amended by inserting after 

the items for chapter 61 the following: 

‘‘CHAPTER 63—BUREAU OF TRANSPORTATION STATISTICS.’’. 

SEC. 52012. ADMINISTRATIVE AUTHORITY. 

Section 112 of title 49, United States Code, is amended by adding at the end the following: 

‘‘(f) PROGRAM EVALUATION AND OVERSIGHT.—For each of fiscal 

years 2013 and 2014, the Administrator is authorized to expend not 

more than 11⁄2 percent of the amounts authorized to be appropriated 

for necessary expenses for administration and operations of the Research and Innovative Technology Administration for the coordination, evaluation, and oversight of the programs administered by the 

Administration. 

‘‘(g) COLLABORATIVE RESEARCH AND DEVELOPMENT.— 

‘‘(1) IN GENERAL.—To encourage innovative solutions to 

multimodal transportation problems and stimulate the deployment of new technology, the Administrator may carry out, on a 

cost-shared basis, collaborative research and development 

with— 

‘‘(A) non-Federal entities, including State and local 

governments, foreign governments, institutions of higher 

education, corporations, institutions, partnerships, sole proprietorships, and trade associations that are incorporated 

or established under the laws of any State; 

‘‘(B) Federal laboratories; and 

‘‘(C) other Federal agencies. 

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ministrator may directly initiate contracts, grants, cooperative 

research and development agreements (as defined in section 12 

of the Stevenson-Wydler Technology Innovation Act of 1980 (15 

U.S.C. 3710a)), and other agreements to fund, and accept funds 

from, the Transportation Research Board of the National Research Council of the National Academy of Sciences, State departments of transportation, cities, counties, institutions of 

higher education, associations, and the agents of those entities 

to carry out joint transportation research and technology efforts. 

‘‘(3) FEDERAL SHARE.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Federal share of the cost of an activity carried out under 

paragraph (2) shall not exceed 50 percent. 

‘‘(B) EXCEPTION.—If the Secretary determines that the 

activity is of substantial public interest or benefit, the Secretary may approve a greater Federal share. 

‘‘(C) NON-FEDERAL SHARE.—All costs directly incurred 

by the non-Federal partners, including personnel, travel, facility, and hardware development costs, shall be credited 

toward the non-Federal share of the cost of an activity described in subparagraph (A). 

‘‘(4) USE OF TECHNOLOGY.—The research, development, or 

use of a technology under a contract, grant, cooperative research 

and development agreement, or other agreement entered into 

under this subsection, including the terms under which the 

technology may be licensed and the resulting royalties may be 

distributed, shall be subject to the Stevenson-Wydler Technology 

Innovation Act of 1980 (15 U.S.C. 3701 et seq.). 

‘‘(5) WAIVER OF ADVERTISING REQUIREMENTS.—Section 6101 

of title 41 shall not apply to a contract, grant, or other agreement entered into under this section.’’. 

SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC PLANNING. 

Section 508(a) of title 23, United States Code, is amended— 

(1) in paragraph (1), by striking ‘‘SAFETEA–LU’’ and inserting ‘‘Transportation Research and Innovative Technology 

Act of 2012’’; and 

(2) in paragraph (2), by striking subparagraph (A) and inserting the following: 

‘‘(A) describe the primary purposes of the transportation research and development program, which shall include, at a minimum— 

‘‘(i) promoting safety; 

‘‘(ii) reducing congestion and improving mobility; 

‘‘(iii) preserving the environment; 

‘‘(iv) preserving the existing transportation system; 

‘‘(v) improving the durability and extending the life 

of transportation infrastructure; and 

‘‘(vi) improving goods movement.’’. 


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TITLE III—INTELLIGENT 

TRANSPORTATION SYSTEMS RESEARCH 

SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES. 

Section 513 of title 23, United States Code, is amended to read 

as follows: 

‘‘§ 513. Use of funds for ITS activities 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

apply: 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a 

State or local government, tribal government, transit agency, 

public toll authority, metropolitan planning organization, other 

political subdivision of a State or local government, or a 

multistate or multijurisdictional group applying through a single lead applicant. 

‘‘(2) MULTIJURISDICTIONAL GROUP.—The term ‘multijurisdictional group’ means a combination of State governments, 

local governments, metropolitan planning agencies, transit 

agencies, or other political subdivisions of a State that— 

‘‘(A) have signed a written agreement to implement an 

activity that meets the grant criteria under this section; and 

‘‘(B) is comprised of at least 2 members, each of whom 

is an eligible entity. 

‘‘(b) PURPOSE.—The purpose of this section is to develop, administer, communicate, and promote the use of products of research, 

technology, and technology transfer programs. 

‘‘(c) ITS ADOPTION.— 

‘‘(1) INNOVATIVE TECHNOLOGIES AND STRATEGIES.—The Secretary shall encourage the deployment of ITS technologies that 

will improve the performance of the National Highway System 

in such areas as traffic operations, emergency response, incident 

management, surface transportation network management, 

freight management, traffic flow information, and congestion 

management by accelerating the adoption of innovative technologies through the use of— 

‘‘(A) demonstration programs; 

‘‘(B) grant funding; 

‘‘(C) incentives to eligible entities; and 

‘‘(D) other tools, strategies, or methods that will result 

in the deployment of innovative ITS technologies. 

‘‘(2) COMPREHENSIVE PLAN.—To carry out this section, the 

Secretary shall develop a detailed and comprehensive plan that 

addresses the manner in which incentives may be adopted, as 

appropriate, through the existing deployment activities carried 

out by surface transportation modal administrations.’’. 

SEC. 53002. GOALS AND PURPOSES. 

(a) IN GENERAL.—Chapter 5 of title 23, United States Code, is 

amended by adding after section 513 the following: 

‘‘§ 514. Goals and purposes 

‘‘(a) GOALS.—The goals of the intelligent transportation system 

program include— 


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‘‘(1) enhancement of surface transportation efficiency and 

facilitation of intermodalism and international trade to enable 

existing facilities to meet a significant portion of future transportation needs, including public access to employment, goods, 

and services and to reduce regulatory, financial, and other 

transaction costs to public agencies and system users; 

‘‘(2) achievement of national transportation safety goals, including enhancement of safe operation of motor vehicles and 

nonmotorized vehicles and improved emergency response to collisions, with particular emphasis on decreasing the number and 

severity of collisions; 

‘‘(3) protection and enhancement of the natural environment and communities affected by surface transportation, with 

particular emphasis on assisting State and local governments 

to achieve national environmental goals; 

‘‘(4) accommodation of the needs of all users of surface 

transportation systems, including operators of commercial 

motor vehicles, passenger motor vehicles, motorcycles, bicycles, 

and pedestrians (including individuals with disabilities); and 

‘‘(5) enhancement of national defense mobility and improvement of the ability of the United States to respond to securityrelated or other manmade emergencies and natural disasters. 

‘‘(b) PURPOSES.—The Secretary shall implement activities under 

the intelligent transportation system program, at a minimum— 

‘‘(1) to expedite, in both metropolitan and rural areas, deployment and integration of intelligent transportation systems 

for consumers of passenger and freight transportation; 

‘‘(2) to ensure that Federal, State, and local transportation 

officials have adequate knowledge of intelligent transportation 

systems for consideration in the transportation planning process; 

‘‘(3) to improve regional cooperation and operations planning for effective intelligent transportation system deployment; 

‘‘(4) to promote the innovative use of private resources in 

support of intelligent transportation system development; 

‘‘(5) to facilitate, in cooperation with the motor vehicle industry, the introduction of vehicle-based safety enhancing systems; 

‘‘(6) to support the application of intelligent transportation 

systems that increase the safety and efficiency of commercial 

motor vehicle operations; 

‘‘(7) to develop a workforce capable of developing, operating, 

and maintaining intelligent transportation systems; 

‘‘(8) to provide continuing support for operations and maintenance of intelligent transportation systems; and 

‘‘(9) to ensure a systems approach that includes cooperation 

among vehicles, infrastructure, and users.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by adding after the item 

relating to section 513 the following: 

‘‘514. Goals and purposes.’’. 

SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS. 

(a) IN GENERAL.—Chapter 5 of title 23, United States Code, is 

amended by adding after section 514 (as added by section 53002) 

the following: 


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‘‘§ 515. General authorities and requirements 

‘‘(a) SCOPE.—Subject to the provisions of this chapter, the Secretary shall conduct an ongoing intelligent transportation system 

program— 

‘‘(1) to research, develop, and operationally test intelligent 

transportation systems; and 

‘‘(2) to provide technical assistance in the nationwide application of those systems as a component of the surface transportation systems of the United States. 

‘‘(b) POLICY.—Intelligent transportation system research projects 

and operational tests funded pursuant to this chapter shall encourage and not displace public-private partnerships or private sector 

investment in those tests and projects. 

‘‘(c) COOPERATION WITH GOVERNMENTAL, PRIVATE, AND EDUCATIONAL ENTITIES.—The Secretary shall carry out the intelligent 

transportation system program in cooperation with State and local 

governments and other public entities, the private sector firms of the 

United States, the Federal laboratories, and institutions of higher 

education, including historically Black colleges and universities and 

other minority institutions of higher education. 

‘‘(d) CONSULTATION WITH FEDERAL OFFICIALS.—In carrying out 

the intelligent transportation system program, the Secretary shall 

consult with the heads of other Federal agencies, as appropriate. 

‘‘(e) TECHNICAL ASSISTANCE, TRAINING, AND INFORMATION.— 

The Secretary may provide technical assistance, training, and information to State and local governments seeking to implement, operate, maintain, or evaluate intelligent transportation system technologies and services. 

‘‘(f) TRANSPORTATION PLANNING.—The Secretary may provide 

funding to support adequate consideration of transportation systems 

management and operations, including intelligent transportation 

systems, within metropolitan and statewide transportation planning 

processes. 

‘‘(g) INFORMATION CLEARINGHOUSE.— 

‘‘(1) IN GENERAL.—The Secretary shall— 

‘‘(A) maintain a repository for technical and safety data 

collected as a result of federally sponsored projects carried 

out under this chapter; and 

‘‘(B) make, on request, that information (except for proprietary information and data) readily available to all 

users of the repository at an appropriate cost. 

‘‘(2) AGREEMENT.— 

‘‘(A) IN GENERAL.—The Secretary may enter into an 

agreement with a third party for the maintenance of the repository for technical and safety data under paragraph 

(1)(A). 

‘‘(B) FEDERAL FINANCIAL ASSISTANCE.—If the Secretary 

enters into an agreement with an entity for the maintenance of the repository, the entity shall be eligible for Federal financial assistance under this section. 

‘‘(3) AVAILABILITY OF INFORMATION.—Information in the repository shall not be subject to sections 552 and 555 of title 5, 

United States Code. 

‘‘(h) ADVISORY COMMITTEE.— 


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‘‘(1) IN GENERAL.—The Secretary shall establish an Advisory Committee to advise the Secretary on carrying out this 

chapter. 

‘‘(2) MEMBERSHIP.—The Advisory Committee shall have no 

more than 20 members, be balanced between metropolitan and 

rural interests, and include, at a minimum— 

‘‘(A) a representative from a State highway department; 

‘‘(B) a representative from a local highway department 

who is not from a metropolitan planning organization; 

‘‘(C) a representative from a State, local, or regional 

transit agency; 

‘‘(D) a representative from a metropolitan planning organization; 

‘‘(E) a private sector user of intelligent transportation 

system technologies; 

‘‘(F) an academic researcher with expertise in computer 

science or another information science field related to intelligent transportation systems, and who is not an expert on 

transportation issues; 

‘‘(G) an academic researcher who is a civil engineer; 

‘‘(H) an academic researcher who is a social scientist 

with expertise in transportation issues; 

‘‘(I) a representative from a nonprofit group representing the intelligent transportation system industry; 

‘‘(J) a representative from a public interest group concerned with safety; 

‘‘(K) a representative from a public interest group concerned with the impact of the transportation system on 

land use and residential patterns; and 

‘‘(L) members with expertise in planning, safety, telecommunications, utilities, and operations. 

‘‘(3) DUTIES.—The Advisory Committee shall, at a minimum, perform the following duties: 

‘‘(A) Provide input into the development of the intelligent transportation system aspects of the strategic plan 

under section 508. 

‘‘(B) Review, at least annually, areas of intelligent 

transportation systems research being considered for funding by the Department, to determine— 

‘‘(i) whether these activities are likely to advance 

either the state-of-the-practice or state-of-the-art in intelligent transportation systems; 

‘‘(ii) whether the intelligent transportation system 

technologies are likely to be deployed by users, and if 

not, to determine the barriers to deployment; and 

‘‘(iii) the appropriate roles for government and the 

private sector in investing in the research and technologies being considered. 

‘‘(4) REPORT.—Not later than February 1 of each year after 

the date of enactment of the Transportation Research and Innovative Technology Act of 2012, the Secretary shall submit to 

Congress a report that includes— 

‘‘(A) all recommendations made by the Advisory Committee during the preceding calendar year; 


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‘‘(B) an explanation of the manner in which the Secretary has implemented those recommendations; and 

‘‘(C) for recommendations not implemented, the reasons 

for rejecting the recommendations. 

‘‘(5) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE

ACT.—The Advisory Committee shall be subject to the Federal 

Advisory Committee Act (5 U.S.C. App.). 

‘‘(i) REPORTING.— ‘‘(1) GUIDELINES AND REQUIREMENTS.— ‘‘(A) IN GENERAL.—The Secretary shall issue guidelines 

and requirements for the reporting and evaluation of operational tests and deployment projects carried out under this 

chapter. 

‘‘(B) OBJECTIVITY AND INDEPENDENCE.—The guidelines 

and requirements issued under subparagraph (A) shall include provisions to ensure the objectivity and independence 

of the reporting entity so as to avoid any real or apparent 

conflict of interest or potential influence on the outcome by 

parties to any such test or deployment project or by any 

other formal evaluation carried out under this chapter. 

‘‘(C) FUNDING.—The guidelines and requirements 

issued under subparagraph (A) shall establish reporting 

funding levels based on the size and scope of each test or 

project that ensure adequate reporting of the results of the 

test or project. 

‘‘(2) SPECIAL RULE.—Any survey, questionnaire, or interview that the Secretary considers necessary to carry out the reporting of any test, deployment project, or program assessment 

activity under this chapter shall not be subject to chapter 35 of 

title 44, United States Code.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by adding after the item 

relating to section 514 (as added by section 53002) the following: 

‘‘515. General authorities and requirements.’’. 

SEC. 53004. RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—Chapter 5 of title 23, United States Code, is 

amended by adding after section 515 (as added by section 53003) 

the following: 

‘‘§ 516. Research and development 

‘‘(a) IN GENERAL.—The Secretary shall carry out a comprehensive program of intelligent transportation system research and development, and operational tests of intelligent vehicles, intelligent 

infrastructure systems, and other similar activities that are necessary to carry out this chapter. 

‘‘(b) PRIORITY AREAS.—Under the program, the Secretary shall 

give higher priority to funding projects that— 

‘‘(1) enhance mobility and productivity through improved 

traffic management, incident management, transit management, freight management, road weather management, toll collection, traveler information, or highway operations systems 

and remote sensing products; 

‘‘(2) use interdisciplinary approaches to develop traffic 

management strategies and tools to address multiple impacts of 

congestion concurrently; 


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‘‘(3) address traffic management, incident management, 

transit management, toll collection traveler information, or 

highway operations systems; 

‘‘(4) incorporate research on the potential impact of environmental, weather, and natural conditions on intelligent transportation systems, including the effects of cold climates; 

‘‘(5) enhance intermodal use of intelligent transportation 

systems for diverse groups, including for emergency and healthrelated services; 

‘‘(6) enhance safety through improved crash avoidance and 

protection, crash and other notification, commercial motor vehicle operations, and infrastructure-based or cooperative safety 

systems; or 

‘‘(7) facilitate the integration of intelligent infrastructure, 

vehicle, and control technologies. 

‘‘(c) FEDERAL SHARE.—The Federal share payable on account of 

any project or activity carried out under subsection (a) shall not exceed 80 percent.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by adding after the item 

relating to section 515 (as added by section 53003) the following: 

‘‘516. Research and development.’’. 

SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS. 

(a) IN GENERAL.—Chapter 5 of title 23, United States Code, is 

amended by adding after section 516 (as added by section 53004) 

the following: 

‘‘§ 517. National architecture and standards 

‘‘(a) IN GENERAL.— 

‘‘(1) DEVELOPMENT, IMPLEMENTATION, AND MAINTENANCE.— 

In accordance with section 12(d) of the National Technology 

Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 

110 Stat. 783; 115 Stat. 1241), the Secretary shall develop and 

maintain a national ITS architecture and supporting ITS 

standards and protocols to promote the use of systems engineering methods in the widespread deployment and evaluation of 

intelligent transportation systems as a component of the surface 

transportation systems of the United States. 

‘‘(2) INTEROPERABILITY AND EFFICIENCY.—To the maximum 

extent practicable, the national ITS architecture and supporting 

ITS standards and protocols shall promote interoperability 

among, and efficiency of, intelligent transportation systems and 

technologies implemented throughout the United States. 

‘‘(3) USE OF STANDARDS DEVELOPMENT ORGANIZATIONS.—In 

carrying out this section, the Secretary shall support the development and maintenance of standards and protocols using the 

services of such standards development organizations as the 

Secretary determines to be necessary and whose memberships 

are comprised of, and represent, the surface transportation and 

intelligent transportation systems industries. 

‘‘(b) STANDARDS FOR NATIONAL POLICY IMPLEMENTATION.—If 

the Secretary finds that a standard is necessary for implementation 

of a nationwide policy relating to user fee collection or other capability requiring nationwide uniformity, the Secretary, after consultaVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00514 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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tion with stakeholders, may establish and require the use of that 

standard. 

‘‘(c) PROVISIONAL STANDARDS.— ‘‘(1) IN GENERAL.—If the Secretary finds that the development or balloting of an intelligent transportation system standard jeopardizes the timely achievement of the objectives described in subsection (a), the Secretary may establish a provisional standard, after consultation with affected parties, using, 

to the maximum extent practicable, the work product of appropriate standards development organizations. 

‘‘(2) PERIOD OF EFFECTIVENESS.—A provisional standard 

established under paragraph (1) shall be published in the Federal Register and remain in effect until the appropriate standards development organization adopts and publishes a standard. 

‘‘(d) CONFORMITY WITH NATIONAL ARCHITECTURE.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the 

Secretary shall ensure that intelligent transportation system 

projects carried out using amounts made available from the 

Highway Trust Fund, including amounts made available to deploy intelligent transportation systems, conform to the appropriate regional ITS architecture, applicable standards, and protocols developed under subsection (a) or (c). 

‘‘(2) DISCRETION OF THE SECRETARY.—The Secretary, at the 

discretion of the Secretary, may offer an exemption from paragraph (1) for projects designed to achieve specific research objectives outlined in the national intelligent transportation system 

program plan or the surface transportation research and development strategic plan developed under section 508.’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by adding after the item 

relating to section 516 (as added by section 53004) the following: 

‘‘517. National architecture and standards.’’. 

SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE 

COMMUNICATIONS SYSTEMS DEPLOYMENT. 

(a) IN GENERAL.—Chapter 5 of title 23, United States Code, is 

amended by adding after section 517 (as added by section 53005) 

the following: 

‘‘§ 518. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems deployment 

‘‘(a) IN GENERAL.—Not later than 3 years after the date of enactment of this section, the Secretary shall submit to the Committees 

on Commerce, Science, and Transportation and Environment and 

Public Works of the Senate and the Committees on Transportation 

and Infrastructure, Energy and Commerce, and Science, Space, and 

Technology of the House of Representatives that— 

‘‘(1) assesses the status of dedicated short-range communications technology and applications developed through research and development; 

‘‘(2) analyzes the known and potential gaps in short-range 

communications technology and applications; 

‘‘(3) defines a recommended implementation path for dedicated short-range communications technology and applications 

that— 


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‘‘(A) is based on the assessment described in paragraph 

(1); and 

‘‘(B) takes into account the analysis described in paragraph (2); 

‘‘(4) includes guidance on the relationship of the proposed 

deployment of dedicated short-range communications to the National ITS Architecture and ITS Standards; and 

‘‘(5) ensures competition by not preferencing the use of any 

particular frequency for vehicle to infrastructure operations. 

‘‘(b) REPORT REVIEW.—The Secretary shall enter into agreements with the National Research Council and an independent 

third party with subject matter expertise for the review of the report 

described in subsection (a).’’. 

(b) CONFORMING AMENDMENT.—The analysis for chapter 5 of 

title 23, United States Code, is amended by adding after section 517 

(as added by section 53005) the following: 

‘‘518. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems deployment.’’. 

DIVISION F—MISCELLANEOUS 

TITLE I—REAUTHORIZATION OF 

CERTAIN PROGRAMS 

Subtitle A—Secure Rural Schools and 

Community Self-determination Program 

SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION PROGRAM. 

(a) AMENDMENTS.—The Secure Rural Schools and Community 

Self-Determination Act of 2000 (16 U.S.C. 7101 et seq.) is amended— 

(1) in section 3(11)— 

(A) in subparagraph (A), by striking ‘‘and’’ after the 

semicolon at the end; 

(B) in subparagraph (B)— 

(i) by striking ‘‘fiscal year 2009 and each fiscal 

year thereafter’’ and inserting ‘‘each of fiscal years 2009 

through 2011’’; and 

(ii) by striking the period at the end and inserting 

‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(C) for fiscal year 2012 and each fiscal year thereafter, 

the amount that is equal to 95 percent of the full funding 

amount for the preceding fiscal year.’’; 

(2) in sections 101, 102, 203, 207, 208, 304, and 402, by 

striking ‘‘2011’’ each place it appears and inserting ‘‘2012’’; 

(3) in section 102— 

(A) by striking ‘‘2008’’ each place it appears and inserting ‘‘2012’’; 

(B) in subsection (b)(2)(B), by inserting ‘‘in 2012’’ before 

‘‘, the election’’; and 

(C) in subsection (d)— 


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(i) in paragraph (1)(A), by striking ‘‘paragraph 

(3)(B)’’ and inserting ‘‘subparagraph (D)’’; and 

(ii) in paragraph (3)— 

(I) by striking subparagraph (A) and inserting 

the following: 

‘‘(A) NOTIFICATION.—The Governor of each eligible 

State shall notify the Secretary concerned of an election by 

an eligible county under this subsection not later than September 30, 2012, and each September 30 thereafter for each 

succeeding fiscal year.’’; 

(II) by redesignating subparagraph (B) as subparagraph (D) and moving the subparagraph so as 

to appear at the end of paragraph (1) of subsection 

(d); and 

(III) by inserting after subparagraph (A) the 

following: 

‘‘(B) FAILURE TO ELECT.—If the Governor of an eligible 

State fails to notify the Secretary concerned of the election 

for an eligible county by the date specified in subparagraph 

(A)— 

‘‘(i) the eligible county shall be considered to have 

elected to expend 80 percent of the funds in accordance 

with paragraph (1)(A); and 

‘‘(ii) the remainder shall be available to the Secretary concerned to carry out projects in the eligible 

county to further the purpose described in section 

202(b).’’; 

(4) in section 103(d)(2), by striking ‘‘fiscal year 2011’’ and 

inserting ‘‘each of fiscal years 2011 and 2012’’; 

(5) in section 202, by adding at the end the following: 

‘‘(c) ADMINISTRATIVE EXPENSES.—A resource advisory committee may, in accordance with section 203, propose to use not more 

than 10 percent of the project funds of an eligible county for any fiscal year for administrative expenses associated with operating the 

resource advisory committee under this title.’’; 

(6) in section 204(e)(3)(B)(iii), by striking ‘‘and 2011’’ and 

inserting ‘‘through 2012’’; 

(7) in section 205(a)(4), by striking ‘‘2006’’ each place it appears and inserting ‘‘2011’’; 

(8) in section 208(b), by striking ‘‘2012’’ and inserting 

‘‘2013’’; 

(9) in section 302(a)(2)(A), by inserting ‘‘and’’ after the 

semicolon; and 

(10) in section 304(b), by striking ‘‘2012’’ and inserting 

‘‘2013’’. 

(b) FAILURE TO MAKE ELECTION.—For each county that failed 

to make an election for fiscal year 2011 in accordance with section 

102(d)(3)(A) of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7112(d)(3)(A)), there shall be available to the Secretary of Agriculture to carry out projects to further 

the purpose described in section 202(b) of that Act (16 U.S.C. 

7122(b)), from amounts in the Treasury not otherwise appropriated, 

the amount that is equal to 15 percent of the total share of the State 

payment that otherwise would have been made to the county under 

that Act for fiscal year 2011. 


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Subtitle B—Payment in Lieu of Taxes 

Program 

SEC. 100111. PAYMENTS IN LIEU OF TAXES. 

Section 6906 of title 31, United States Code, is amended by 

striking ‘‘2012’’ and inserting ‘‘2013’’. 

Subtitle C—Offsets 

SEC. 100121. PHASED RETIREMENT AUTHORITY. 

(a) CSRS.—Chapter 83 of title 5, United States Code, is amended— 

(1) in section 8331— 

(A) in paragraph (30) by striking ‘‘and’’ at the end; 

(B) in paragraph (31) by striking the period at the end 

and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(32) ‘Director’ means the Director of the Office of Personnel 

Management.’’; 

(2) by inserting after section 8336 the following: 

‘‘§ 8336a. Phased retirement 

‘‘(a) For the purposes of this section— 

‘‘(1) the term ‘composite retirement annuity’ means the annuity computed when a phased retiree attains full retirement 

status; 

‘‘(2) the term ‘full retirement status’ means that a phased 

retiree has ceased employment and is entitled, upon application, 

to a composite retirement annuity; 

‘‘(3) the term ‘phased employment’ means the less-than-fulltime employment of a phased retiree; 

‘‘(4) the term ‘phased retiree’ means a retirement-eligible 

employee who— 

‘‘(A) makes an election under subsection (b); and 

‘‘(B) has not entered full retirement status; 

‘‘(5) the term ‘phased retirement annuity’ means the annuity 

payable under this section before full retirement; 

‘‘(6) the term ‘phased retirement percentage’ means the percentage which, when added to the working percentage for a 

phased retiree, produces a sum of 100 percent; 

‘‘(7) the term ‘phased retirement period’ means the period 

beginning on the date on which an individual becomes entitled 

to receive a phased retirement annuity and ending on the date 

on which the individual dies or separates from phased employment; 

‘‘(8) the term ‘phased retirement status’ means that a 

phased retiree is concurrently employed in phased employment 

and eligible to receive a phased retirement annuity; 

‘‘(9) the term ‘retirement-eligible employee’— 

‘‘(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8336; but 


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‘‘(B) does not include an employee described in section 

8335 after the date on which the employee is required to be 

separated from the service by reason of such section; and 

‘‘(10) the term ‘working percentage’ means the percentage of 

full-time employment equal to the quotient obtained by dividing— 

‘‘(A) the number of hours per pay period to be worked 

by a phased retiree, as scheduled in accordance with subsection (b)(2); by 

‘‘(B) the number of hours per pay period to be worked 

by an employee serving in a comparable position on a fulltime basis. 

‘‘(b)(1) With the concurrence of the head of the employing agency, and under regulations promulgated by the Director, a retirement-eligible employee who has been employed on a full-time basis 

for not less than the 3-year period ending on the date on which the 

retirement-eligible employee makes an election under this subsection 

may elect to enter phased retirement status. 

‘‘(2)(A) Subject to subparagraph (B), at the time of entering 

phased retirement status, a phased retiree shall be appointed to a 

position for which the working percentage is 50 percent. 

‘‘(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph 

(A), which shall be not less than 20 percent and not more than 80 

percent. 

‘‘(C) The working percentage for a phased retiree may not be 

changed during the phased retiree’s phased retirement period. 

‘‘(D)(i) Not less than 20 percent of the hours to be worked by a 

phased retiree shall consist of mentoring. 

‘‘(ii) The Director may, by regulation, provide for exceptions to 

the requirement under clause (i). 

‘‘(iii) Clause (i) shall not apply to a phased retiree serving in 

the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission. 

‘‘(3) A phased retiree— 

‘‘(A) may not be employed in more than one position at any 

time; and 

‘‘(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change 

in the working percentage. 

‘‘(4) A retirement-eligible employee may make not more than one 

election under this subsection during the retirement-eligible employee’s lifetime. 

‘‘(5) A retirement-eligible employee who makes an election under 

this subsection may not make an election under section 8343a. 

‘‘(c)(1) Except as otherwise provided under this subsection, the 

phased retirement annuity for a phased retiree is the product obtained by multiplying— 

‘‘(A) the amount of an annuity computed under section 8339 

that would have been payable to the phased retiree if, on the 

date on which the phased retiree enters phased retirement status, the phased retiree had separated from service and retired 

under section 8336(a) or (b); by 


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‘‘(B) the phased retirement percentage for the phased retiree. 

‘‘(2) A phased retirement annuity shall be paid in addition to 

the basic pay for the position to which a phased retiree is appointed 

during phased employment. 

‘‘(3) A phased retirement annuity shall be adjusted in accordance with section 8340. 

‘‘(4)(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the 

basis of the computation of any survivor annuity, and shall not be 

subject to any court order requiring a survivor annuity to be provided to any individual. 

‘‘(B) A phased retirement annuity shall be subject to a court 

order providing for division, allotment, assignment, execution, levy, 

attachment, garnishment, or other legal process on the same basis 

as other annuities. 

‘‘(5) Any reduction of a phased retirement annuity based on an 

election under section 8334(d)(2) shall be applied to the phased retirement annuity after computation under paragraph (1). 

‘‘(6)(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian 

service for which retirement deductions were not made or refunded 

shall be made by a retirement-eligible employee at or before the time 

the retirement-eligible employee enters phased retirement status. No 

such deposit may be made, or actuarial adjustment in lieu thereof 

elected, at the time a phased retiree enters full retirement status. 

‘‘(B) Notwithstanding subparagraph (A), if a phased retiree 

does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to 

make such deposit as would have been available had the employee 

not entered phased retirement status and died in service. 

‘‘(C) If a phased retiree makes an election for an actuarial annuity reduction under section 8334(d)(2) and dies in service as a 

phased retiree, the amount of any deposit upon which such actuarial reduction shall have been based shall be deemed to have been 

fully paid. 

‘‘(7) A phased retirement annuity shall commence on the date 

on which a phased retiree enters phased employment. 

‘‘(8) No unused sick leave credit may be used in the computation 

of the phased retirement annuity. 

‘‘(d) All basic pay not in excess of the full-time rate of pay for 

the position to which a phased retiree is appointed shall be deemed 

to be basic pay for purposes of section 8334. 

‘‘(e) Under such procedures as the Director may prescribe, a 

phased retiree may elect to enter full retirement status at any time. 

Upon making such an election, a phased retiree shall be entitled to 

a composite retirement annuity. 

‘‘(f)(1) Except as provided otherwise under this subsection, a 

composite retirement annuity is a single annuity computed under 

regulations prescribed by the Director, equal to the sum of— 

‘‘(A) the amount of the phased retirement annuity as of the 

date of full retirement, before any reduction based on an election under section 8334(d)(2), and including any adjustments 

made under section 8340; and 

‘‘(B) the product obtained by multiplying— 


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‘‘(i) the amount of an annuity computed under section 

8339 that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time 

basis in the position occupied during the phased retirement 

period and before any reduction for survivor annuity or reduction based on an election under section 8334(d)(2); by 

‘‘(ii) the working percentage. 

‘‘(2) After computing a composite retirement annuity under 

paragraph (1), the Director shall adjust the amount of the annuity 

for any applicable reductions for a survivor annuity and any previously elected actuarial reduction under section 8334(d)(2). 

‘‘(3) A composite retirement annuity shall be adjusted in accordance with section 8340, except that subsection (c)(1) of that section 

shall not apply. 

‘‘(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted 

by dividing the number of hours of unused sick leave by the working 

percentage. 

‘‘(g)(1) Under such procedures and conditions as the Director 

may provide, and with the concurrence of the head of the employing 

agency, a phased retiree may elect to terminate phased retirement 

status and return to a full-time work schedule. 

‘‘(2) Upon entering a full-time work schedule based upon an 

election under paragraph (1), the phased retirement annuity of a 

phased retiree shall terminate. 

‘‘(3) After the termination of a phased retirement annuity under 

this subsection, the individual’s rights under this subchapter shall 

be determined based on the law in effect at the time of any subsequent separation from service. For purposes of this subchapter or 

chapter 84, at time of the subsequent separation from service, the 

phased retirement period shall be treated as if it had been a period 

of part-time employment with the work schedule described in subsection (b)(2). 

‘‘(h) For purposes of section 8341— 

‘‘(1) the death of a phased retiree shall be deemed to be the 

death in service of an employee; and 

‘‘(2) the phased retirement period shall be deemed to have 

been a period of part-time employment with the work schedule 

described in subsection (b)(2). 

‘‘(i) Employment of a phased retiree shall not be deemed to be 

part-time career employment, as defined in section 3401(2). 

‘‘(j) A phased retiree is not eligible to apply for an annuity 

under section 8337. 

‘‘(k) For purposes of section 8341(h)(4), retirement shall be 

deemed to occur on the date on which a phased retiree enters into 

full retirement status. 

‘‘(l) For purposes of sections 8343 and 8351, and subchapter III 

of chapter 84, a phased retiree shall be deemed to be an employee. 

‘‘(m) A phased retiree is not subject to section 8344. 

‘‘(n) For purposes of chapter 87, a phased retiree shall be 

deemed to be receiving basic pay at the rate of a full-time employee 

in the position to which the phased retiree is appointed.’’; and 


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(3) in the table of sections by inserting after the item relating to section 8336 the following: 

‘‘8336a. Phased retirement.’’. 

(b) FERS.—Chapter 84 of title 5, United States Code, is amended— 

(1) by inserting after section 8412 the following new section: 

‘‘§ 8412a. Phased retirement 

‘‘(a) For the purposes of this section— 

‘‘(1) the term ‘composite retirement annuity’ means the annuity computed when a phased retiree attains full retirement 

status; 

‘‘(2) the term ‘full retirement status’ means that a phased 

retiree has ceased employment and is entitled, upon application, 

to a composite retirement annuity; 

‘‘(3) the term ‘phased employment’ means the less-than-fulltime employment of a phased retiree; 

‘‘(4) the term ‘phased retiree’ means a retirement-eligible 

employee who— 

‘‘(A) makes an election under subsection (b); and 

‘‘(B) has not entered full retirement status; 

‘‘(5) the term ‘phased retirement annuity’ means the annuity 

payable under this section before full retirement; 

‘‘(6) the term ‘phased retirement percentage’ means the percentage which, when added to the working percentage for a 

phased retiree, produces a sum of 100 percent; 

‘‘(7) the term ‘phased retirement period’ means the period 

beginning on the date on which an individual becomes entitled 

to receive a phased retirement annuity and ending on the date 

on which the individual dies or separates from phased employment; 

‘‘(8) the term ‘phased retirement status’ means that a 

phased retiree is concurrently employed in phased employment 

and eligible to receive a phased retirement annuity; 

‘‘(9) the term ‘retirement-eligible employee’— 

‘‘(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8412; and 

‘‘(B) does not include— 

‘‘(i) an individual who, if the individual separated 

from the service, would meet the requirements for retirement under subsection (d) or (e) of section 8412; but 

‘‘(ii) does not include an employee described in section 8425 after the date on which the employee is required to be separated from the service by reason of 

such section; and 

‘‘(10) the term ‘working percentage’ means the percentage of 

full-time employment equal to the quotient obtained by dividing— 

‘‘(A) the number of hours per pay period to be worked 

by a phased retiree, as scheduled in accordance with subsection (b)(2); by 

‘‘(B) the number of hours per pay period to be worked 

by an employee serving in a comparable position on a fulltime basis. 


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‘‘(b)(1) With the concurrence of the head of the employing agency, and under regulations promulgated by the Director, a retirement-eligible employee who has been employed on a full-time basis 

for not less than the 3-year period ending on the date on which the 

retirement-eligible employee makes an election under this subsection 

may elect to enter phased retirement status. 

‘‘(2)(A) Subject to subparagraph (B), at the time of entering 

phased retirement status, a phased retiree shall be appointed to a 

position for which the working percentage is 50 percent. 

‘‘(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph 

(A), which shall be not less than 20 percent and not more than 80 

percent. 

‘‘(C) The working percentage for a phased retiree may not be 

changed during the phased retiree’s phased retirement period. 

‘‘(D)(i) Not less than 20 percent of the hours to be worked by a 

phased retiree shall consist of mentoring. 

‘‘(ii) The Director may, by regulation, provide for exceptions to 

the requirement under clause (i). 

‘‘(iii) Clause (i) shall not apply to a phased retiree serving in 

the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission. 

‘‘(3) A phased retiree— 

‘‘(A) may not be employed in more than one position at any 

time; and 

‘‘(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change 

in the working percentage. 

‘‘(4) A retirement-eligible employee may make not more than one 

election under this subsection during the retirement-eligible employee’s lifetime. 

‘‘(5) A retirement-eligible employee who makes an election under 

this subsection may not make an election under section 8420a. 

‘‘(c)(1) Except as otherwise provided under this subsection, the 

phased retirement annuity for a phased retiree is the product obtained by multiplying— 

‘‘(A) the amount of an annuity computed under section 8415 

that would have been payable to the phased retiree if, on the 

date on which the phased retiree enters phased retirement status, the phased retiree had separated from service and retired 

under section 8412 (a) or (b); by 

‘‘(B) the phased retirement percentage for the phased retiree. 

‘‘(2) A phased retirement annuity shall be paid in addition to 

the basic pay for the position to which a phased retiree is appointed 

during the phased employment. 

‘‘(3) A phased retirement annuity shall be adjusted in accordance with section 8462. 

‘‘(4)(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the 

basis of the computation of any survivor annuity, and shall not be 

subject to any court order requiring a survivor annuity to be provided to any individual. 


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‘‘(B) A phased retirement annuity shall be subject to a court 

order providing for division, allotment, assignment, execution, levy, 

attachment, garnishment, or other legal process on the same basis 

as other annuities. 

‘‘(5)(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian 

service for which retirement deductions were not made or refunded, 

shall be made by a retirement-eligible employee at or before the time 

the retirement-eligible employee enters phased retirement status. No 

such deposit may be made, or actuarial adjustment in lieu thereof 

elected, at the time a phased retiree enters full retirement status. 

‘‘(B) Notwithstanding subparagraph (A), if a phased retiree 

does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to 

make such deposit as would have been available had the employee 

not entered phased retirement status and died in service. 

‘‘(6) A phased retirement annuity shall commence on the date 

on which a phased retiree enters phased employment. 

‘‘(7) No unused sick leave credit may be used in the computation 

of the phased retirement annuity. 

‘‘(d) All basic pay not in excess of the full-time rate of pay for 

the position to which a phased retiree is appointed shall be deemed 

to be basic pay for purposes of sections 8422 and 8423. 

‘‘(e) Under such procedures as the Director may prescribe, a 

phased retiree may elect to enter full retirement status at any time. 

Upon making such an election, a phased retiree shall be entitled to 

a composite retirement annuity. 

‘‘(f)(1) Except as provided otherwise under this subsection, a 

composite retirement annuity is a single annuity computed under 

regulations prescribed by the Director, equal to the sum of— 

‘‘(A) the amount of the phased retirement annuity as of the 

date of full retirement, including any adjustments made under 

section 8462; and 

‘‘(B) the product obtained by multiplying— 

‘‘(i) the amount of an annuity computed under section 

8412 that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time 

basis in the position occupied during the phased retirement 

period and before any adjustment to provide for a survivor 

annuity; by 

‘‘(ii) the working percentage. 

‘‘(2) After computing a composite retirement annuity under 

paragraph (1), the Director shall adjust the amount of the annuity 

for any applicable reductions for a survivor annuity. 

‘‘(3) A composite retirement annuity shall be adjusted in accordance with section 8462, except that subsection (c)(1) of that section 

shall not apply. 

‘‘(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted 

by dividing the number of hours of unused sick leave by the working 

percentage. 

‘‘(g)(1) Under such procedures and conditions as the Director 

may provide, and with the concurrence of the head of employing 


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agency, a phased retiree may elect to terminate phased retirement 

status and return to a full-time work schedule. 

‘‘(2) Upon entering a full-time work schedule based on an election under paragraph (1), the phased retirement annuity of a 

phased retiree shall terminate. 

‘‘(3) After termination of the phased retirement annuity under 

this subsection, the individual’s rights under this chapter shall be 

determined based on the law in effect at the time of any subsequent 

separation from service. For purposes of this chapter, at the time of 

the subsequent separation from service, the phased retirement period shall be treated as if it had been a period of part-time employment with the work schedule described in subsection (b)(2). 

‘‘(h) For purposes of subchapter IV— 

‘‘(1) the death of a phased retiree shall be deemed to be the 

death in service of an employee; 

‘‘(2) except for purposes of section 8442(b)(1)(A)(i), the 

phased retirement period shall be deemed to have been a period 

of part-time employment with the work schedule described in 

subsection (b)(2) of this section; and 

‘‘(3) for purposes of section 8442(b)(1)(A)(i), the phased retiree shall be deemed to have been at the full-time rate of pay 

for the position occupied. 

‘‘(i) Employment of a phased retiree shall not be deemed to be 

part-time career employment, as defined in section 3401(2). 

‘‘(j) A phased retiree is not eligible to receive an annuity supplement under section 8421. 

‘‘(k) For purposes of subchapter III, a phased retiree shall be 

deemed to be an employee. 

‘‘(l) For purposes of section 8445(d), retirement shall be deemed 

to occur on the date on which a phased retiree enters into full retirement status. 

‘‘(m) A phased retiree is not eligible to apply for an annuity 

under subchapter V. 

‘‘(n) A phased retiree is not subject to section 8468. 

‘‘(o) For purposes of chapter 87, a phased retiree shall be 

deemed to be receiving basic pay at the rate of a full-time employee 

in the position to which the phased retiree is appointed.’’; and 

(2) in the table of sections by inserting after the item relating to section 8412 the following: 

‘‘8412a. Phased retirement.’’. 

(c) EXEMPTION FROM 10-PERCENT ADDITIONAL TAX ON EARLY

DISTRIBUTIONS.—Section 72(t)(2)(A) of the Internal Revenue Code of 

1986 is amended by striking ‘‘or’’ at the end of clause (vi), by striking the period at the end of clause (vii) and inserting ‘‘, or’’, and by 

adding at the end the following: 

‘‘(viii) payments under a phased retirement annuity under section 8366a(a)(5) or 8412a(a)(5) of title 5, 

United States Code, or a composite retirement annuity 

under section 8366a(a)(1) or 8412a(a)(1) of such title.’’. 

(d) EFFECTIVE DATE.—The amendments made by subsections 

(a) and (b) shall take effect on the effective date of the implementing 

regulations issued by the Director of the Office of Personnel Management. 


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SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES. 

(a) IN GENERAL.—Subsection (d) of section 5702 of the Internal 

Revenue Code of 1986 is amended by adding at the end the following new flush sentence: 

‘‘Such term shall include any person who for commercial purposes 

makes available for consumer use (including such consumer’s personal consumption or use under paragraph (1)) a machine capable 

of making cigarettes, cigars, or other tobacco products. A person 

making such a machine available for consumer use shall be deemed 

the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer’s personal home use is not making a machine available for 

commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal 

use quantities.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to articles removed after the date of the enactment of 

this Act. 

SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY 

STATES. 

(a) ACCELERATED DATE FOR PRIOR AMENDMENTS.—Section 

3204(b) of the Middle Class Tax Relief and Job Creation Act of 

2012 (Public Law 112–96) is amended by striking ‘‘October 1, 2013’’ 

and inserting ‘‘October 1, 2012’’. 

(b) APPLICATION OF 50 PERCENT IN FISCAL YEAR 2013.—Subparagraph (B) of section 1905(aa)(1) of the Social Security Act (42 

U.S.C. 1396d(aa)(1)), as amended by section 3204(a) of Public Law 

112–96, is amended by striking ‘‘25 percent’’ and inserting ‘‘25 percent (or 50 percent in the case of fiscal year 2013)’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective as if included in the enactment of section 3204 of 

Public Law 112–96. 

SEC. 100124. REPEALS. 

(a) TRANSPORTATION REQUIREMENTS FOR CERTAIN EXPORTS

SPONSORED BY THE SECRETARY OF AGRICULTURE.— 

(1) REPEAL.—Subsections (a) and (c) of section 55314 of 

title 46, United States Code, are repealed. 

(2) ACTIVITIES DESCRIBED.—Subsection (b) of section 55314 

of title 46, United States Code, is amended by striking ‘‘This 

section applies to export activity’’ and inserting ‘‘The activities 

specified in this subsection are export activities’’. 

(b) FINANCING THE TRANSPORTATION OF AGRICULTURAL COMMODITIES.—Subsection (a) of section 55316 of title 46, United States 

Code, is repealed. 

(c) CONFORMING AMENDMENTS.— 

(1) MINIMUM TONNAGE.—Section 55315(b) of title 46, 

United States Code, is amended by striking ‘‘subject to section 

55314’’ and inserting ‘‘specified in section 55314(b)’’. 

(2) ISSUANCE AND PURCHASE OF OBLIGATIONS AND NOTIFICATION TO CONGRESS OF INSUFFICIENCY.—Section 55316 of title 

46, United States Code, is amended— 

(A) in subsection (c)(1) by striking ‘‘under subsections 

(a) and (b)’’ and inserting ‘‘under subsection (b)’’; and 


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(B) in subsection (f) by striking ‘‘subsections (a) and (b) 

and section 55314(a) of this title’’ and inserting ‘‘subsection 

(b)’’. 

(3) TERMINATION OF SUBCHAPTER.—Section 55317 of title 

46, United States Code, is amended by striking ‘‘sections 

55314(a) and 55316(a) and (b)’’ and inserting ‘‘section 

55316(b)’’. 

SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE 

RECLAMATION FUND. 

Section 411(h) of the Surface Mining Control and Reclamation 

Act of 1977 (30 U.S.C. 1240a(h)) is amended by adding at the end 

the following: 

‘‘(5) LIMITATION ON ANNUAL PAYMENTS.—Notwithstanding 

any other provision of this subsection, the total annual payment 

to a certified State or Indian tribe under this subsection shall 

be not more than $15,000,000.’’. 

TITLE II—FLOOD INSURANCE 

Subtitle A—Flood Insurance Reform and 

Modernization 

SEC. 100201. SHORT TITLE. 

This subtitle may be cited as the ‘‘Biggert-Waters Flood Insurance Reform Act of 2012’’. 

SEC. 100202. DEFINITIONS. 

(a) IN GENERAL.—In this subtitle, the following definitions 

shall apply: 

(1) 100-YEAR FLOODPLAIN.—The term ‘‘100-year floodplain’’ 

means that area which is subject to inundation from a flood 

having a 1-percent chance of being equaled or exceeded in any 

given year. 

(2) 500-YEAR FLOODPLAIN.—The term ‘‘500-year floodplain’’ 

means that area which is subject to inundation from a flood 

having a 0.2-percent chance of being equaled or exceeded in any 

given year. 

(3) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Federal Emergency Management Agency. 

(4) NATIONAL FLOOD INSURANCE PROGRAM.—The term ‘‘National Flood Insurance Program’’ means the program established under the National Flood Insurance Act of 1968 (42 

U.S.C. 4011 et seq.). 

(5) WRITE YOUR OWN.—The term ‘‘Write Your Own’’ means 

the cooperative undertaking between the insurance industry and 

the Federal Insurance Administration which allows participating property and casualty insurance companies to write and 

service standard flood insurance policies. 

(b) COMMON TERMINOLOGY.—Except as otherwise provided in 

this subtitle, any terms used in this subtitle shall have the meaning 

given to such terms under section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 4121). 


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SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM. 

(a) FINANCING.—Section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking ‘‘July 

31, 2012’’ and inserting ‘‘September 30, 2017’’. 

(b) PROGRAM EXPIRATION.—Section 1319 of the National Flood 

Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 

‘‘July 31, 2012’’ and inserting ‘‘September 30, 2017’’. 

SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES. 

Section 1305 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4012) is amended— 

(1) in subsection (b)(2)(A), by inserting ‘‘not described in 

subsection (a) or (d)’’ after ‘‘properties’’; and 

(2) by adding at the end the following: 

‘‘(d) AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.— 

‘‘(1) IN GENERAL.—The Administrator shall make flood insurance available to cover residential properties of 5 or more 

residences. Notwithstanding any other provision of law, the 

maximum coverage amount that the Administrator may make 

available under this subsection to such residential properties 

shall be equal to the coverage amount made available to commercial properties. 

‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to limit the ability of individuals residing in 

residential properties of 5 or more residences to obtain insurance for the contents and personal articles located in such residences.’’. 

SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE. 

(a) TO EXCLUDE CERTAIN PROPERTIES FROM RECEIVING SUBSIDIZED PREMIUM RATES.— 

(1) IN GENERAL.—Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended— 

(A) in subsection (a)(2), by striking ‘‘for any residential 

property which is not the primary residence of an individual; and’’ and inserting the following: ‘‘for— 

‘‘(A) any residential property which is not the primary 

residence of an individual; 

‘‘(B) any severe repetitive loss property; 

‘‘(C) any property that has incurred flood-related damage in which the cumulative amounts of payments under 

this title equaled or exceeded the fair market value of such 

property; 

‘‘(D) any business property; or 

‘‘(E) any property which on or after the date of enactment of the Biggert-Waters Flood Insurance Reform Act of 

2012 has experienced or sustained— 

‘‘(i) substantial damage exceeding 50 percent of the 

fair market value of such property; or 

‘‘(ii) substantial improvement exceeding 30 percent 

of the fair market value of such property; and’’; and 

(B) by adding at the end the following: 

‘‘(g) NO EXTENSION OF SUBSIDY TO NEW POLICIES OR LAPSED

POLICIES.—The Administrator shall not provide flood insurance to 


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prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for— 

‘‘(1) any property not insured by the flood insurance program as of the date of enactment of the Biggert-Waters Flood 

Insurance Reform Act of 2012; 

‘‘(2) any property purchased after the date of enactment of 

the Biggert-Waters Flood Insurance Reform Act of 2012; 

‘‘(3) any policy under the flood insurance program that has 

lapsed in coverage, as a result of the deliberate choice of the 

holder of such policy; or 

‘‘(4) any prospective insured who refuses to accept any offer 

for mitigation assistance by the Administrator (including an 

offer to relocate), including an offer of mitigation assistance— 

‘‘(A) following a major disaster, as defined in section 

102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122); or 

‘‘(B) in connection with— 

‘‘(i) a repetitive loss property; or 

‘‘(ii) a severe repetitive loss property. 

‘‘(h) DEFINITION.—In this section, the term ‘severe repetitive loss 

property’ has the following meaning: 

‘‘(1) SINGLE-FAMILY PROPERTIES.—In the case of a property 

consisting of 1 to 4 residences, such term means a property 

that— 

‘‘(A) is covered under a contract for flood insurance 

made available under this title; and 

‘‘(B) has incurred flood-related damage— 

‘‘(i) for which 4 or more separate claims payments 

have been made under flood insurance coverage under 

this chapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of 

such claims payments exceeding $20,000; or 

‘‘(ii) for which at least 2 separate claims payments 

have been made under such coverage, with the cumulative amount of such claims exceeding the value of the 

property. 

‘‘(2) MULTIFAMILY PROPERTIES.—In the case of a property 

consisting of 5 or more residences, such term shall have such 

meaning as the Director shall by regulation provide.’’. 

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall become effective 90 days after the date of enactment of this Act. 

(b) ESTIMATES OF PREMIUM RATES.—Section 1307(a)(1)(B) of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) 

is amended— 

(1) in clause (ii), by striking ‘‘and’’ at the end; 

(2) in clause (iii), by adding ‘‘and’’ at the end; and 

(3) by inserting after clause (iii) the following: 

‘‘(iv) all costs, as prescribed by principles and 

standards of practice in ratemaking adopted by the 

American Academy of Actuaries and the Casualty Actuarial Society, including— 

‘‘(I) an estimate of the expected value of future 

costs, 


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‘‘(II) all costs associated with the transfer of 

risk, and 

‘‘(III) the costs associated with an individual 

risk transfer with respect to risk classes, as defined 

by the Administrator,’’. 

(c) INCREASE IN ANNUAL LIMITATION ON PREMIUM IN- CREASES.—Section 1308(e) of the National Flood Insurance Act of 

1968 (42 U.S.C. 4015(e)) is amended— 

(1) in the matter preceding paragraph (1)— 

(A) by striking ‘‘or (3)’’; and 

(B) by inserting ‘‘any properties’’ after ‘‘under this title 

for’’; 

(2) in paragraph (1)— 

(A) by striking ‘‘any properties within any single’’ and 

inserting ‘‘within any single’’; and 

(B) by striking ‘‘10 percent’’ and inserting ‘‘20 percent’’; 

and 

(3) by striking paragraph (2) and inserting the following: 

‘‘(2) described in subparagraphs (A) through (E) of section 

1307(a)(2) shall be increased by 25 percent each year, until the 

average risk premium rate for such properties is equal to the 

average of the risk premium rates for properties described 

under paragraph (1).’’. 

(d) PREMIUM PAYMENT FLEXIBILITY FOR NEW AND EXISTING

POLICYHOLDERS.—Section 1308 of the National Flood Insurance Act 

of 1968 (42 U.S.C. 4015) is amended by adding at the end the following: 

‘‘(g) FREQUENCY OF PREMIUM COLLECTION.—With respect to any 

chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow 

their premiums and fees for flood insurance as set forth under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 

4012a) with the option of paying their premiums either annually or 

in more frequent installments.’’. 

(e) RULE OF CONSTRUCTION.—Nothing in this section or the 

amendments made by this section may be construed to affect the requirement under section 2(c) of the Act entitled ‘‘An Act to extend 

the National Flood Insurance Program, and for other purposes’’, approved May 31, 2012 (Public Law 112–123), that the first increase 

in chargeable risk premium rates for residential properties which 

are not the primary residence of an individual take effect on July 

1, 2012. 

SEC. 100207. PREMIUM ADJUSTMENT. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by section 100205, is further amended by 

adding at the end the following: 

‘‘(h) PREMIUM ADJUSTMENT TO REFLECT CURRENT RISK OF

FLOOD.—Notwithstanding subsection (f), upon the effective date of 

any revised or updated flood insurance rate map under this Act, the 

Flood Disaster Protection Act of 1973, or the Biggert-Waters Flood 

Insurance Reform Act of 2012, any property located in an area that 

is participating in the national flood insurance program shall have 

the risk premium rate charged for flood insurance on such property 

adjusted to accurately reflect the current risk of flood to such property, subject to any other provision of this Act. Any increase in the 


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risk premium rate charged for flood insurance on any property that 

is covered by a flood insurance policy on the effective date of such 

an update that is a result of such updating shall be phased in over 

a 5-year period, at the rate of 20 percent for each year following 

such effective date. In the case of any area that was not previously 

designated as an area having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood 

insurance map, becomes designated as such an area, the chargeable 

risk premium rate for flood insurance under this title that is purchased on or after the date of enactment of this subsection with respect to any property that is located within such area shall be 

phased in over a 5-year period, at the rate of 20 percent for each 

year following the effective date of such issuance, revision, updating, 

or change.’’. 

SEC. 100208. ENFORCEMENT. 

Section 102(f)(5) of the Flood Disaster Protection Act of 1973 

(42 U.S.C. 4012a(f)(5)) is amended— 

(1) in the first sentence, by striking ‘‘$350’’ and inserting 

‘‘$2,000’’; and 

(2) by striking the second sentence. 

SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS. 

(a) IN GENERAL.—Paragraph (1) of section 102(d) of the Flood 

Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended to 

read as follows: 

‘‘(1) REGULATED LENDING INSTITUTIONS.— 

‘‘(A) FEDERAL ENTITIES RESPONSIBLE FOR LENDING

REGULATIONS.—Each Federal entity for lending regulation 

(after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that all premiums and fees for flood insurance 

under the National Flood Insurance Act of 1968, for improved real estate or a mobile home, shall be paid to the 

regulated lending institution or servicer for any loan secured by the improved real estate or mobile home, with the 

same frequency as payments on the loan are made, for the 

duration of the loan. Except as provided in subparagraph 

(C), upon receipt of any premiums or fees, the regulated 

lending institution or servicer shall deposit such premiums 

and fees in an escrow account on behalf of the borrower. 

Upon receipt of a notice from the Administrator or the provider of the flood insurance that insurance premiums are 

due, the premiums deposited in the escrow account shall be 

paid to the provider of the flood insurance. 

‘‘(B) LIMITATION.—Except as may be required under 

applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under 

the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A) or 

(B), if— 

‘‘(i) the regulated lending institution has total assets of less than $1,000,000,000; and 


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‘‘(ii) on or before the date of enactment of the 

Biggert-Waters Flood Insurance Reform Act of 2012, 

the regulated lending institution— 

‘‘(I) in the case of a loan secured by residential 

improved real estate or a mobile home, was not required under Federal or State law to deposit taxes, 

insurance premiums, fees, or any other charges in 

an escrow account for the entire term of the loan; 

and 

‘‘(II) did not have a policy of consistently and 

uniformly requiring the deposit of taxes, insurance 

premiums, fees, or any other charges in an escrow 

account for loans secured by residential improved 

real estate or a mobile home.’’. 

(b) APPLICABILITY.—The amendment made by subsection (a) 

shall apply to any mortgage outstanding or entered into on or after 

the expiration of the 2-year period beginning on the date of enactment of this Act. 

SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL FLOOD INSURANCE PROGRAM. 

Section 1312 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4019) is amended— 

(1) by striking ‘‘The Director is’’ and inserting the following: 

‘‘(a) IN GENERAL.—The Administrator is’’; and 

(2) by adding at the end the following: 

‘‘(b) MINIMUM ANNUAL DEDUCTIBLE.— 

‘‘(1) PRE-FIRM PROPERTIES.—For any structure which is 

covered by flood insurance under this title, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood 

insurance rate map published by the Administrator under section 1360 for the area in which such structure is located, the 

minimum annual deductible for damage to such structure shall 

be— 

‘‘(A) $1,500, if the flood insurance coverage for such 

structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and 

‘‘(B) $2,000, if the flood insurance coverage for such 

structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. 

‘‘(2) POST-FIRM PROPERTIES.—For any structure which is 

covered by flood insurance under this title, and on which construction or substantial improvement occurred after December 

31, 1974, or after the effective date of an initial flood insurance 

rate map published by the Administrator under section 1360 for 

the area in which such structure is located, the minimum annual deductible for damage to such structure shall be— 

‘‘(A) $1,000, if the flood insurance coverage for such 

structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and 

‘‘(B) $1,250, if the flood insurance coverage for such 

structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.’’. 


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SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by this Act, is amended— 

(1) in subsection (a), by striking ‘‘, after consultation with’’ 

and all that follows through ‘‘by regulation’’ and inserting ‘‘prescribe, after providing notice’’; 

(2) in subsection (b)— 

(A) in paragraph (1), by striking the period at the end 

and inserting a semicolon; 

(B) in paragraph (2), by striking the comma at the end 

and inserting a semicolon; 

(C) in paragraph (3), by striking ‘‘, and’’ and inserting 

a semicolon; 

(D) in paragraph (4), by striking the period at the end 

and inserting ‘‘; and’’; and 

(E) by adding at the end the following: 

‘‘(5) adequate, on the basis of accepted actuarial principles, 

to cover the average historical loss year obligations incurred by 

the National Flood Insurance Fund.’’; and 

(3) by adding at the end the following: 

‘‘(i) RULE OF CONSTRUCTION.—For purposes of this section, the 

calculation of an ‘average historical loss year’— 

‘‘(1) includes catastrophic loss years; and 

‘‘(2) shall be computed in accordance with generally accepted actuarial principles.’’. 

SEC. 100212. RESERVE FUND. 

Chapter I of the National Flood Insurance Act of 1968 (42 

U.S.C. 4011 et seq.) is amended by inserting after section 1310 (42 

U.S.C. 4017) the following: 

‘‘SEC. 1310A. RESERVE FUND. 

‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In carrying out the 

flood insurance program authorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as 

the ‘Reserve Fund’) which shall— 

‘‘(1) be an account separate from any other accounts or 

funds available to the Administrator; and 

‘‘(2) be available for meeting the expected future obligations 

of the flood insurance program, including— 

‘‘(A) the payment of claims; 

‘‘(B) claims adjustment expenses; and 

‘‘(C) the repayment of amounts outstanding under any 

note or other obligation issued by the Administrator under 

section 1309(a). 

‘‘(b) RESERVE RATIO.—Subject to the phase-in requirements 

under subsection (d), the Reserve Fund shall maintain a balance 

equal to— 

‘‘(1) 1 percent of the sum of the total potential loss exposure 

of all outstanding flood insurance policies in force in the prior 

fiscal year; or 

‘‘(2) such higher percentage as the Administrator determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund. 


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‘‘(c) MAINTENANCE OF RESERVE RATIO.— ‘‘(1) IN GENERAL.—The Administrator shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal 

year necessary— 

‘‘(A) to maintain the reserve ratio required under subsection (b); and 

‘‘(B) to achieve such reserve ratio, if the actual balance 

of such reserve is below the amount required under subsection (b). 

‘‘(2) CONSIDERATIONS.—In exercising the authority granted 

under paragraph (1), the Administrator shall consider— 

‘‘(A) the expected operating expenses of the Reserve 

Fund; 

‘‘(B) the insurance loss expenditures under the flood insurance program; 

‘‘(C) any investment income generated under the flood 

insurance program; and 

‘‘(D) any other factor that the Administrator determines 

appropriate. 

‘‘(3) LIMITATIONS.— ‘‘(A) RATES.—In exercising the authority granted under 

paragraph (1), the Administrator shall be subject to all 

other provisions of this Act, including any provisions relating to chargeable premium rates or annual increases of 

such rates. 

‘‘(B) USE OF ADDITIONAL ANNUAL INSURANCE PRE- MIUMS.—Notwithstanding any other provision of law or 

any agreement entered into by the Administrator, the Administrator shall ensure that all amounts attributable to 

the establishment or increase of annual insurance premiums under paragraph (1) are transferred to the Administrator for deposit into the Reserve Fund, to be available for 

meeting the expected future obligations of the flood insurance program as described in subsection (a)(2). 

‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in requirements 

under this subsection are as follows: 

‘‘(1) IN GENERAL.—Beginning in fiscal year 2013 and not 

ending until the fiscal year in which the ratio required under 

subsection (b) is achieved, in each such fiscal year the Administrator shall place in the Reserve Fund an amount equal to not 

less than 7.5 percent of the reserve ratio required under subsection (b). 

‘‘(2) AMOUNT SATISFIED.—As soon as the ratio required 

under subsection (b) is achieved, and except as provided in 

paragraph (3), the Administrator shall not be required to set 

aside any amounts for the Reserve Fund. 

‘‘(3) EXCEPTION.—If at any time after the ratio required 

under subsection (b) is achieved, the Reserve Fund falls below 

the required ratio under subsection (b), the Administrator shall 

place in the Reserve Fund for that fiscal year an amount equal 

to not less than 7.5 percent of the reserve ratio required under 

subsection (b). 

‘‘(e) LIMITATION ON RESERVE RATIO.—In any given fiscal year, 

if the Administrator determines that the reserve ratio required 


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under subsection (b) cannot be achieved, the Administrator shall 

submit a report to Congress that— 

‘‘(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not 

being achieved; 

‘‘(2) demonstrates how such consequences would harm the 

long-term financial soundness of the flood insurance program; 

and 

‘‘(3) indicates the maximum attainable reserve ratio for that 

particular fiscal year. 

‘‘(f) INVESTMENT.—The Secretary of the Treasury shall invest 

such amounts of the Reserve Fund as the Secretary determines advisable in obligations issued or guaranteed by the United States.’’. 

SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY. 

(a) REPAYMENT PLAN REQUIRED.—Section 1309 of the National 

Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding 

at the end the following: 

‘‘(c) Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to— 

‘‘(1) the Secretary of the Treasury; 

‘‘(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and 

‘‘(3) the Committee on Financial Services of the House of 

Representatives. 

‘‘(d) In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are 

borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress 

of such repayment to— 

‘‘(1) the Secretary of the Treasury; 

‘‘(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and 

‘‘(3) the Committee on Financial Services of the House of 

Representatives.’’. 

(b) REPORT.—Not later than the expiration of the 6-month period beginning on the date of enactment of this Act, the Administrator shall submit a report to the Congress setting forth options for 

repaying within 10 years all amounts, including any amounts previously borrowed but not yet repaid, owed pursuant to clause (2) of 

subsection (a) of section 1309 of the National Flood Insurance Act 

of 1968 (42 U.S.C. 4016(a)(2)). 

SEC. 100214. PAYMENT OF CONDOMINIUM CLAIMS. 

Section 1312 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4019), as amended by section 100210, is amended by adding 

at the end the following: 

‘‘(c) PAYMENT OF CLAIMS TO CONDOMINIUM OWNERS.—The Administrator may not deny payment for any damage to or loss of 

property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from 

the flood insurance purchased by the condominium association in 

which such owner is a member, based solely, or in any part, on the 


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flood insurance coverage of the condominium association or others 

on the overall property owned by the condominium association.’’. 

SEC. 100215. TECHNICAL MAPPING ADVISORY COUNCIL. 

(a) ESTABLISHMENT.—There is established a council to be 

known as the Technical Mapping Advisory Council (in this section 

referred to as the ‘‘Council’’). 

(b) MEMBERSHIP.— (1) IN GENERAL.—The Council shall consist of— 

(A) the Administrator (or the designee thereof); 

(B) the Secretary of the Interior (or the designee thereof); 

(C) the Secretary of Agriculture (or the designee thereof); 

(D) the Under Secretary of Commerce for Oceans and 

Atmosphere (or the designee thereof); and 

(E) 16 additional members appointed by the Administrator or the designee of the Administrator, who shall be— 

(i) a member of a recognized professional surveying 

association or organization; 

(ii) a member of a recognized professional mapping 

association or organization; 

(iii) a member of a recognized professional engineering association or organization; 

(iv) a member of a recognized professional association or organization representing flood hazard determination firms; 

(v) a representative of the United States Geological 

Survey; 

(vi) a representative of a recognized professional 

association or organization representing State geographic information; 

(vii) a representative of State national flood insurance coordination offices; 

(viii) a representative of the Corps of Engineers; 

(ix) a member of a recognized regional flood and 

storm water management organization; 

(x) 2 representatives of different State government 

agencies that have entered into cooperating technical 

partnerships with the Administrator and have demonstrated the capability to produce flood insurance rate 

maps; 

(xi) 2 representatives of different local government 

agencies that have entered into cooperating technical 

partnerships with the Administrator and have demonstrated the capability to produce flood insurance 

maps; 

(xii) a member of a recognized floodplain management association or organization; 

(xiii) a member of a recognized risk management 

association or organization; and 

(xiv) a State mitigation officer. 

(2) QUALIFICATIONS.—Members of the Council shall be appointed based on their demonstrated knowledge and competence 

regarding surveying, cartography, remote sensing, geographic 

information systems, or the technical aspects of preparing and 


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using flood insurance rate maps. In appointing members under 

paragraph (1)(E), the Administrator shall, to the maximum extent practicable, ensure that the membership of the Council has 

a balance of Federal, State, local, tribal, and private members, 

and includes geographic diversity, including representation 

from areas with coastline on the Gulf of Mexico and other 

States containing areas identified by the Administrator as at 

high risk for flooding or as areas having special flood hazards. 

(c) DUTIES.—The Council shall— 

(1) recommend to the Administrator how to improve in a 

cost-effective manner the— 

(A) accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps and 

risk data; and 

(B) performance metrics and milestones required to effectively and efficiently map flood risk areas in the United 

States; 

(2) recommend to the Administrator mapping standards 

and guidelines for— 

(A) flood insurance rate maps; and 

(B) data accuracy, data quality, data currency, and 

data eligibility; 

(3) recommend to the Administrator how to maintain, on 

an ongoing basis, flood insurance rate maps and flood risk 

identification; 

(4) recommend procedures for delegating mapping activities 

to State and local mapping partners; 

(5) recommend to the Administrator and other Federal 

agencies participating in the Council— 

(A) methods for improving interagency and intergovernmental coordination on flood mapping and flood risk 

determination; and 

(B) a funding strategy to leverage and coordinate budgets and expenditures across Federal agencies; and 

(6) submit an annual report to the Administrator that contains— 

(A) a description of the activities of the Council; 

(B) an evaluation of the status and performance of 

flood insurance rate maps and mapping activities to revise 

and update flood insurance rate maps, as required under 

section 100216; and 

(C) a summary of recommendations made by the Council to the Administrator. 

(d) FUTURE CONDITIONS RISK ASSESSMENT AND MODELING REPORT.— 

(1) IN GENERAL.—The Council shall consult with scientists 

and technical experts, other Federal agencies, States, and local 

communities to— 

(A) develop recommendations on how to— 

(i) ensure that flood insurance rate maps incorporate the best available climate science to assess flood 

risks; and 

(ii) ensure that the Federal Emergency Management Agency uses the best available methodology to 

consider the impact of— 


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(I) the rise in the sea level; and 

(II) future development on flood risk; and 

(B) not later than 1 year after the date of enactment of 

this Act, prepare written recommendations in a future conditions risk assessment and modeling report and to submit 

such recommendations to the Administrator. 

(2) RESPONSIBILITY OF THE ADMINISTRATOR.—The Administrator, as part of the ongoing program to review and update 

National Flood Insurance Program rate maps under section 

100216, shall incorporate any future risk assessment submitted 

under paragraph (1)(B) in any such revision or update. 

(e) CHAIRPERSON.—The members of the Council shall elect 1 

member to serve as the chairperson of the Council (in this section 

referred to as the ‘‘Chairperson’’). 

(f) COORDINATION.—To ensure that the Council’s recommendations are consistent, to the maximum extent practicable, with national digital spatial data collection and management standards, 

the Chairperson shall consult with the Chairperson of the Federal 

Geographic Data Committee (established pursuant to Office of Management and Budget Circular A–16). 

(g) COMPENSATION.—Members of the Council shall receive no 

additional compensation by reason of their service on the Council. 

(h) MEETINGS AND ACTIONS.— 

(1) IN GENERAL.—The Council shall meet not less frequently 

than twice each year at the request of the Chairperson or a majority of its members, and may take action by a vote of the majority of the members. 

(2) INITIAL MEETING.—The Administrator, or a person designated by the Administrator, shall request and coordinate the 

initial meeting of the Council. 

(i) OFFICERS.—The Chairperson may appoint officers to assist 

in carrying out the duties of the Council under subsection (c). 

(j) STAFF.— 

(1) STAFF OF FEMA.—Upon the request of the Chairperson, 

the Administrator may detail, on a nonreimbursable basis, personnel of the Federal Emergency Management Agency to assist 

the Council in carrying out its duties. 

(2) STAFF OF OTHER FEDERAL AGENCIES.—Upon request of 

the Chairperson, any other Federal agency that is a member of 

the Council may detail, on a nonreimbursable basis, personnel 

to assist the Council in carrying out its duties. 

(k) POWERS.—In carrying out this section, the Council may hold 

hearings, receive evidence and assistance, provide information, and 

conduct research, as it considers appropriate. 

(l) REPORT TO CONGRESS.—The Administrator, on an annual 

basis, shall report to the Committee on Banking, Housing, and 

Urban Affairs of the Senate, the Committee on Financial Services 

of the House of Representatives, and the Office of Management and 

Budget on the— 

(1) recommendations made by the Council; 

(2) actions taken by the Federal Emergency Management 

Agency to address such recommendations to improve flood insurance rate maps and flood risk data; and 


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(3) any recommendations made by the Council that have 

been deferred or not acted upon, together with an explanatory 

statement. 

SEC. 100216. NATIONAL FLOOD MAPPING PROGRAM. 

(a) REVIEWING, UPDATING, AND MAINTAINING MAPS.—The Administrator, in coordination with the Technical Mapping Advisory 

Council established under section 100215, shall establish an ongoing program under which the Administrator shall review, update, 

and maintain National Flood Insurance Program rate maps in accordance with this section. 

(b) MAPPING.— 

(1) IN GENERAL.—In carrying out the program established 

under subsection (a), the Administrator shall— 

(A) identify, review, update, maintain, and publish National Flood Insurance Program rate maps with respect 

to— 

(i) all populated areas and areas of possible population growth located within the 100-year floodplain; 

(ii) all populated areas and areas of possible population growth located within the 500-year floodplain; 

(iii) areas of residual risk, including areas that are 

protected by levees, dams, and other flood control structures; 

(iv) areas that could be inundated as a result of 

the failure of a levee, dam, or other flood control structure; and 

(v) the level of protection provided by flood control 

structures; 

(B) establish or update flood-risk zone data in all such 

areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for 

each such area; and 

(C) use, in identifying, reviewing, updating, maintaining, or publishing any National Flood Insurance Program 

rate map required under this section or under the National 

Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), the 

most accurate topography and elevation data available. 

(2) MAPPING ELEMENTS.—Each map updated under this 

section shall— 

(A) assess the accuracy of current ground elevation 

data used for hydrologic and hydraulic modeling of flooding sources and mapping of the flood hazard and wherever 

necessary acquire new ground elevation data utilizing the 

most up-to-date geospatial technologies in accordance with 

guidelines and specifications of the Federal Emergency 

Management Agency; and 

(B) develop National Flood Insurance Program flood 

data on a watershed basis— 

(i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; 

and 

(ii) to eliminate, to the maximum extent possible, 

discrepancies in base flood elevations between adjacent 

political subdivisions. 


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(3) OTHER INCLUSIONS.—In updating maps under this section, the Administrator shall include— 

(A) any relevant information on coastal inundation 

from— 

(i) an applicable inundation map of the Corps of 

Engineers; and 

(ii) data of the National Oceanic and Atmospheric 

Administration relating to storm surge modeling; 

(B) any relevant information of the United States Geological Survey on stream flows, watershed characteristics, 

and topography that is useful in the identification of flood 

hazard areas, as determined by the Administrator; 

(C) any relevant information on land subsidence, coastal erosion areas, changing lake levels, and other flood-related hazards; 

(D) any relevant information or data of the National 

Oceanic and Atmospheric Administration and the United 

States Geological Survey relating to the best available 

science regarding future changes in sea levels, precipitation, and intensity of hurricanes; and 

(E) any other relevant information as may be recommended by the Technical Mapping Advisory Committee. 

(c) STANDARDS.—In updating and maintaining maps under this 

section, the Administrator shall— 

(1) establish standards to— 

(A) ensure that maps are adequate for— 

(i) flood risk determinations; and 

(ii) use by State and local governments in managing development to reduce the risk of flooding; and 

(B) facilitate identification and use of consistent methods of data collection and analysis by the Administrator, in 

conjunction with State and local governments, in developing maps for communities with similar flood risks, as determined by the Administrator; and 

(2) publish maps in a format that is— 

(A) digital geospatial data compliant; 

(B) compliant with the open publishing and data exchange standards established by the Open Geospatial Consortium; and 

(C) aligned with official data defined by the National 

Geodetic Survey. 

(d) COMMUNICATION AND OUTREACH.— 

(1) IN GENERAL.—The Administrator shall— 

(A) work to enhance communication and outreach to 

States, local communities, and property owners about the 

effects— 

(i) of any potential changes to National Flood Insurance Program rate maps that may result from the 

mapping program required under this section; and 

(ii) that any such changes may have on flood insurance purchase requirements; 

(B) engage with local communities to enhance communication and outreach to the residents of such communities, 

including tenants (with regard to contents insurance), on 

the matters described under subparagraph (A); and 


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(C) upon the issuance of any proposed map and any 

notice of an opportunity to make an appeal relating to the 

proposed map, notify the Senators for each State affected 

and each Member of the House of Representatives for each 

congressional district affected by the proposed map of any 

action taken by the Administrator with respect to the proposed map or an appeal relating to the proposed map. 

(2) REQUIRED ACTIVITIES.—The communication and outreach activities required under paragraph (1) shall include— 

(A) notifying property owners when their properties become included in, or when they are excluded from, an area 

covered by the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act 

of 1973 (42 U.S.C. 4012a); 

(B) educating property owners regarding the flood risk 

and reduction of this risk in their community, including 

the continued flood risks to areas that are no longer subject 

to the flood insurance mandatory purchase requirement; 

(C) educating property owners regarding the benefits 

and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies 

under the National Flood Insurance Act of 1968 (42 U.S.C. 

4011 et seq.) for such properties and the contents of such 

properties; 

(D) educating property owners about flood map revisions and the process available to such owners to appeal 

proposed changes in flood elevations through their community, including by notifying local radio and television stations; and 

(E) encouraging property owners to maintain or acquire flood insurance coverage. 

(e) COMMUNITY REMAPPING REQUEST.—Upon the adoption by 

the Administrator of any recommendation by the Technical Mapping Advisory Council for reviewing, updating, or maintaining National Flood Insurance Program rate maps in accordance with this 

section, a community that believes that its flood insurance rates in 

effect prior to adoption would be affected by the adoption of such 

recommendation may submit a request for an update of its rate 

maps, which may be considered at the Administrator’s sole discretion. The Administrator shall establish a protocol for the evaluation 

of such community map update requests. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to the Administrator to carry out this section 

$400,000,000 for each of fiscal years 2013 through 2017. 

SEC. 100217. SCOPE OF APPEALS. 

Section 1363 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4104) is amended— 

(1) in subsection (a)— 

(A) by inserting ‘‘and designating areas having special 

flood hazards’’ after ‘‘flood elevations’’; and 

(B) by striking ‘‘such determinations’’ and inserting 

‘‘such determinations and designations’’; and 

(2) in subsection (b)— 


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(A) in the first sentence, by inserting ‘‘and designations 

of areas having special flood hazards’’ after ‘‘flood elevation 

determinations’’; and 

(B) by amending the third sentence to read as follows: 

‘‘The sole grounds for appeal shall be the possession of 

knowledge or information indicating that (1) the elevations 

being proposed by the Administrator with respect to an 

identified area having special flood hazards are scientifically or technically incorrect, or (2) the designation of an 

identified special flood hazard area is scientifically or technically incorrect.’’. 

SEC. 100218. SCIENTIFIC RESOLUTION PANEL. 

(a) ESTABLISHMENT.—Chapter III of the National Flood Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by inserting 

after section 1363 (42 U.S.C. 4104) the following: 

‘‘SEC. 1363A. SCIENTIFIC RESOLUTION PANEL. 

‘‘(a) AVAILABILITY.— 

‘‘(1) IN GENERAL.—Pursuant to the authority provided 

under section 1363(e), the Administrator shall make available 

an independent review panel, to be known as the Scientific Resolution Panel, to any community— 

‘‘(A) that has— 

‘‘(i) filed a timely map appeal in accordance with 

section 1363; 

‘‘(ii) completed 60 days of consultation with the 

Federal Emergency Management Agency on the appeal; 

and 

‘‘(iii) not allowed more than 120 days, or such 

longer period as may be provided by the Administrator 

by waiver, to pass since the end of the appeal period; 

or 

‘‘(B) that has received an unsatisfactory ruling under 

the map revision process established pursuant to section 

1360(f). 

‘‘(2) APPEALS BY OWNERS AND LESSEES.—If a community 

and an owner or lessee of real property within the community 

appeal a proposed determination of a flood elevation under section 1363(b), upon the request of the community— 

‘‘(A) the owner or lessee shall submit scientific and 

technical data relating to the appeals to the Scientific Resolution Panel; and 

‘‘(B) the Scientific Resolution Panel shall make a determination with respect to the appeals in accordance with 

subsection (c). 

‘‘(3) DEFINITION.—For purposes of paragraph (1)(B), an ‘unsatisfactory ruling’ means that a community— 

‘‘(A) received a revised Flood Insurance Rate Map from 

the Federal Emergency Management Agency, via a Letter of 

Final Determination, after September 30, 2008, and prior 

to the date of enactment of this section; 

‘‘(B) has subsequently applied for a Letter of Map Revision or Physical Map Revision with the Federal Emergency 

Management Agency; and 


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‘‘(C) has received an unfavorable ruling on their request for a map revision. 

‘‘(b) MEMBERSHIP.—The Scientific Resolution Panel made available under subsection (a) shall consist of 5 members with expertise 

that relates to the creation and study of flood hazard maps and 

flood insurance. The Scientific Resolution Panel may include representatives from Federal agencies not involved in the mapping 

study in question and from other impartial experts. Employees of 

the Federal Emergency Management Agency may not serve on the 

Scientific Resolution Panel. 

‘‘(c) DETERMINATION.— 

‘‘(1) IN GENERAL.—Following deliberations, and not later 

than 90 days after its formation, the Scientific Resolution Panel 

shall issue a determination of resolution of the dispute. Such 

determination shall set forth recommendations for the base 

flood elevation determination or the designation of an area having special flood hazards that shall be reflected in the Flood Insurance Rate Maps. 

‘‘(2) BASIS.—The determination of the Scientific Resolution 

Panel shall be based on— 

‘‘(A) data previously provided to the Administrator by 

the community, and, in the case of a dispute submitted 

under subsection (a)(2), an owner or lessee of real property 

in the community; and 

‘‘(B) data provided by the Administrator. 

‘‘(3) NO ALTERNATIVE DETERMINATIONS PERMISSIBLE.—The 

Scientific Resolution Panel— 

‘‘(A) shall provide a determination of resolution of a 

dispute that— 

‘‘(i) is either in favor of the Administrator or in 

favor of the community on each distinct element of the 

dispute; or 

‘‘(ii) in the case of a dispute submitted under subsection (a)(2), is in favor of the Administrator, in favor 

of the community, or in favor of the owner or lessee of 

real property in the community on each distinct element of the dispute; and 

‘‘(B) may not offer as a resolution any other alternative 

determination. 

‘‘(4) EFFECT OF DETERMINATION.— 

‘‘(A) BINDING.—The recommendations of the Scientific 

Resolution Panel shall be binding on all appellants and not 

subject to further judicial review unless the Administrator 

determines that implementing the determination of the 

panel would— 

‘‘(i) pose a significant threat due to failure to identify a substantial risk of special flood hazards; or 

‘‘(ii) violate applicable law. 

‘‘(B) WRITTEN JUSTIFICATION NOT TO ENFORCE.—If the 

Administrator elects not to implement the determination of 

the Scientific Resolution Panel pursuant to subparagraph 

(A), then not later than 60 days after the issuance of the determination, the Administrator shall issue a written justification explaining such election. 


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‘‘(C) APPEAL OF DETERMINATION NOT TO ENFORCE.—If 

the Administrator elects not to implement the determination of the Scientific Resolution Panel pursuant to subparagraph (A), the community may appeal the determination of 

the Administrator as provided for under section 1363(g). 

‘‘(d) MAPS USED FOR INSURANCE AND MANDATORY PURCHASE

REQUIREMENTS.—With respect to any community that has a dispute 

that is being considered by the Scientific Resolution Panel formed 

pursuant to this subsection, the Federal Emergency Management 

Agency shall ensure that for each such community that— 

‘‘(1) the Flood Insurance Rate Map described in the most 

recently issued Letter of Final Determination shall be in force 

and effect with respect to such community; and 

‘‘(2) flood insurance shall continue to be made available to 

the property owners and residents of the participating community.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) ADMINISTRATIVE REVIEW.—Section 1363(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is 

amended, in the second sentence, by striking ‘‘an independent 

scientific body or appropriate Federal agency for advice’’ and 

inserting ‘‘the Scientific Resolution Panel provided for in section 

1363A’’. 

(2) JUDICIAL REVIEW.—The first sentence of section 1363(g) 

of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) 

is amended by striking ‘‘Any appellant’’ and inserting ‘‘Except 

as provided in section 1363A, any appellant’’. 

SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS 

FOR UPDATING FLOOD MAPS. 

Section 1360(f)(2) of the National Flood Insurance Act of 1968 

(42 U.S.C. 4101(f)(2)) is amended by striking ‘‘, but which may not 

exceed 50 percent of the cost of carrying out the requested revision 

or update’’. 

SEC. 100220. COORDINATION. 

(a) INTERAGENCY BUDGET CROSSCUT AND COORDINATION REPORT.— 

(1) IN GENERAL.—The Secretary of Homeland Security, the 

Administrator, the Director of the Office of Management and 

Budget, and the heads of each Federal department or agency 

carrying out activities under sections 100215 and 100216 shall 

work together to ensure that flood risk determination data and 

geospatial data are shared among Federal agencies in order to 

coordinate the efforts of the Nation to reduce its vulnerability 

to flooding hazards. 

(2) REPORT.—Not later than 30 days after the submission 

of the budget of the United States Government by the President 

to Congress, the Director of the Office of Management and 

Budget, in coordination with the Federal Emergency Management Agency, the United States Geological Survey, the National 

Oceanic and Atmospheric Administration, the Corps of Engineers, and other Federal agencies, as appropriate, shall submit 

to the appropriate authorizing and appropriating committees of 

the Senate and the House of Representatives an interagency 


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budget crosscut and coordination report, certified by the Secretary or head of each such agency, that— 

(A) contains an interagency budget crosscut report that 

displays relevant sections of the budget proposed for each 

of the Federal agencies working on flood risk determination 

data and digital elevation models, including any planned 

interagency or intra-agency transfers; and 

(B) describes how the efforts aligned with such sections 

complement one another. 

(b) DUTIES OF THE ADMINISTRATOR.—In carrying out sections 

100215 and 100216, the Administrator shall— 

(1) participate, pursuant to section 216 of the E–Government Act of 2002 (44 U.S.C. 3501 note), in the establishment of 

such standards and common protocols as are necessary to assure the interoperability of geospatial data for all users of such 

information; 

(2) coordinate with, seek assistance and cooperation of, and 

provide a liaison to the Federal Geographic Data Committee 

pursuant to the Office of Management and Budget Circular A– 

16 and Executive Order 12906 (43 U.S.C. 1457 note; relating to 

the National Spatial Data Infrastructure) for the implementation of and compliance with such standards; 

(3) integrate with, leverage, and coordinate funding of, to 

the maximum extent practicable, the current flood mapping activities of each unit of State and local government; 

(4) integrate with, leverage, and coordinate, to the maximum extent practicable, the current geospatial activities of 

other Federal agencies and units of State and local government; 

and 

(5) develop a funding strategy to leverage and coordinate 

budgets and expenditures, and to maintain or establish joint 

funding and other agreement mechanisms with other Federal 

agencies and units of State and local government to share in 

the collection and utilization of geospatial data among all governmental users. 

SEC. 100221. INTERAGENCY COORDINATION STUDY. 

(a) IN GENERAL.—The Administrator shall enter into a contract 

with the National Academy of Public Administration to conduct a 

study on how the Federal Emergency Management Agency— 

(1) should improve interagency and intergovernmental coordination on flood mapping, including a funding strategy to 

leverage and coordinate budgets and expenditures; and 

(2) can establish joint funding mechanisms with other Federal agencies and units of State and local government to share 

the collection and utilization of data among all governmental 

users. 

(b) TIMING.—A contract entered into under subsection (a) shall 

require that, not later than 180 days after the date of enactment of 

this subtitle, the National Academy of Public Administration shall 

report the findings of the study required under subsection (a) to— 

(1) the Committee on Banking, Housing, and Urban Affairs 

of the Senate; 

(2) the Committee on Financial Services of the House of 

Representatives; 

(3) the Committee on Appropriations of the Senate; and 


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(4) the Committee on Appropriations of the House of Representatives. 

SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER 

RESPA. 

Section 5(b) of the Real Estate Settlement Procedures Act of 

1974 (12 U.S.C. 2604(b)), as amended by section 1450 of the DoddFrank Wall Street Reform and Consumer Protection Act (Public 

Law 111–203; 124 Stat. 2174), is amended by adding at the end the 

following: 

‘‘(14) An explanation of flood insurance and the availability 

of flood insurance under the National Flood Insurance Program 

or from a private insurance company, whether or not the real 

estate is located in an area having special flood hazards.’’. 

SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 

PROGRAMS. 

Chapter I of the National Flood Insurance Act of 1968 (42 

U.S.C. 4011 et seq.) is amended by inserting after section 1313 (42 

U.S.C. 4020) the following: 

‘‘SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 

PROGRAMS. 

‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case of the occurrence of a major disaster, as defined in section 102 of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5122), that may have resulted in flood damage covered under the 

national flood insurance program established under this title and 

other personal lines residential property insurance coverage offered 

by a State regulated insurer, upon a request made by the insurance 

commissioner of a State (or such other official responsible for regulating the business of insurance in the State) for the participation 

of representatives of the Administrator in a program sponsored by 

such State for nonbinding mediation of insurance claims resulting 

from a major disaster, the Administrator shall cause representatives 

of the national flood insurance program to participate in such a 

State program where claims under the national flood insurance program are involved to expedite settlement of flood damage claims resulting from such disaster. 

‘‘(b) EXTENT OF PARTICIPATION.—In satisfying the requirements 

of subsection (a), the Administrator shall require that each representative of the Administrator— 

‘‘(1) be certified for purposes of the national flood insurance 

program to settle claims against such program resulting from 

such disaster in amounts up to the limits of policies under such 

program; 

‘‘(2) attend State-sponsored mediation meetings regarding 

flood insurance claims resulting from such disaster at such 

times and places as may be arranged by the State; 

‘‘(3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insurance program; and 

‘‘(4) finalize the settlement of such claims on behalf of the 

national flood insurance program with such policyholders. 

‘‘(c) COORDINATION.—Representatives of the Administrator shall 

at all times coordinate their activities with insurance officials of the 

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dating and expediting settlement of claims under the national flood 

insurance program resulting from such disaster. 

‘‘(d) QUALIFICATIONS OF MEDIATORS.—Each State mediator participating in State-sponsored mediation under this section shall 

be— 

‘‘(1)(A) a member in good standing of the State bar in the 

State in which the mediation is to occur with at least 2 years 

of practical experience; and 

‘‘(B) an active member of such bar for at least 1 year prior 

to the year in which such mediator’s participation is sought; or 

‘‘(2) a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State 

in which the judge presided for at least 5 years prior to the year 

in which such mediator’s participation is sought. 

‘‘(e) MEDIATION PROCEEDINGS AND DOCUMENTS PRIVILEGED.— 

As a condition of participation, all statements made and documents 

produced pursuant to State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and 

confidential settlement negotiations made in anticipation of litigation. 

‘‘(f) LIABILITY, RIGHTS, OR OBLIGATIONS NOT AFFECTED.—Participation in State-sponsored mediation, as described in this section 

does not— 

‘‘(1) affect or expand the liability of any party in contract 

or in tort; or 

‘‘(2) affect the rights or obligations of the parties, as established— 

‘‘(A) in any regulation issued by the Administrator, including any regulation relating to a standard flood insurance policy; 

‘‘(B) under this title; and 

‘‘(C) under any other provision of Federal law. 

‘‘(g) EXCLUSIVE FEDERAL JURISDICTION.—Participation in 

State-sponsored mediation shall not alter, change, or modify the 

original exclusive jurisdiction of United States courts, as set forth 

in this title. 

‘‘(h) COST LIMITATION.—Nothing in this section shall be construed to require the Administrator or a representative of the Administrator to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program 

in which such representative of the Administrator participates. 

‘‘(i) EXCEPTION.—In the case of the occurrence of a major disaster that results in flood damage claims under the national flood 

insurance program and that does not result in any loss covered by 

a personal lines residential property insurance policy— 

‘‘(1) this section shall not apply; and 

‘‘(2) the provisions of the standard flood insurance policy 

under the national flood insurance program and the appeals 

process established under section 205 of the Bunning-BereuterBlumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 

4011 note) and the regulations issued pursuant to such section 

shall apply exclusively. 

‘‘(j) REPRESENTATIVES OF THE ADMINISTRATOR.—For purposes 

of this section, the term ‘representatives of the Administrator’ means 

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pate in the appeals process established under section 205 of the 

Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 

(42 U.S.C. 4011 note).’’. 

SEC. 100224. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES. 

(a) SUBMISSION OF BIENNIAL REPORTS.— (1) TO THE ADMINISTRATOR.—Not later than 20 days after 

the date of enactment of this Act, each property and casualty insurance company participating in the Write Your Own program 

shall submit to the Administrator any biennial report required 

by the Federal Emergency Management Agency to be prepared 

in the prior 5 years by such company. 

(2) TO GAO.—Not later than 10 days after the submission 

of the biennial reports under paragraph (1), the Administrator 

shall submit all such reports to the Comptroller General of the 

United States. 

(3) NOTICE TO CONGRESS OF FAILURE TO COMPLY.—The Administrator shall notify and report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on 

any property and casualty insurance company participating in 

the Write Your Own program that failed to submit its biennial 

reports as required under paragraph (1). 

(4) FAILURE TO COMPLY.—A property and casualty insurance company participating in the Write Your Own program 

which fails to comply with the reporting requirement under this 

subsection or the requirement under section 62.23(j)(1) of title 

44, Code of Federal Regulations (relating to biennial audit of 

the flood insurance financial statements) shall be subject to a 

civil penalty in an amount of not more than $1,000 per day for 

each day that the company remains in noncompliance with either such requirement. 

(b) METHODOLOGY TO DETERMINE REIMBURSED EXPENSES.— Not later than 180 days after the date of enactment of this Act, the 

Administrator shall develop a methodology for determining the appropriate amounts that property and casualty insurance companies 

participating in the Write Your Own program should be reimbursed 

for selling, writing, and servicing flood insurance policies and adjusting flood insurance claims on behalf of the National Flood Insurance Program. The methodology shall be developed using actual 

expense data for the flood insurance line and can be derived from— 

(1) flood insurance expense data produced by the property 

and casualty insurance companies; 

(2) flood insurance expense data collected by the National 

Association of Insurance Commissioners; or 

(3) a combination of the methodologies described in paragraphs (1) and (2). 

(c) SUBMISSION OF EXPENSE REPORTS.—To develop the methodology established under subsection (b), the Administrator may require each property and casualty insurance company participating 

in the Write Your Own program to submit a report to the Administrator, in a format determined by the Administrator and within 60 

days of the request, that details the expense levels of each such company for selling, writing, and servicing standard flood insurance 

policies and adjusting and servicing claims. 


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(d) FEMA RULEMAKING ON REIMBURSEMENT OF EXPENSES

UNDER THE WRITE YOUR OWN PROGRAM.—Not later than 12 

months after the date of enactment of this Act, the Administrator 

shall issue a rule to formulate revised expense reimbursements to 

property and casualty insurance companies participating in the 

Write Your Own program for their expenses (including their operating and administrative expenses for adjustment of claims) in selling, writing, and servicing standard flood insurance policies, including how such companies shall be reimbursed in both catastrophic and noncatastrophic years. Such reimbursements shall be 

structured to ensure reimbursements track the actual expenses, including standard business costs and operating expenses, of such 

companies as closely as practicably possible. 

(e) REPORT OF THE ADMINISTRATOR.—Not later than 60 days 

after the effective date of the final rule issued pursuant to subsection 

(d), the Administrator shall submit to the Committee on Banking, 

Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing— 

(1) the specific rationale and purposes of such rule; 

(2) the reasons for the adoption of the policies contained in 

such rule; and 

(3) the degree to which such rule accurately represents the 

true operating costs and expenses of property and casualty insurance companies participating in the Write Your Own program. 

(f) GAO STUDY AND REPORT ON EXPENSES OF WRITE YOUR

OWN PROGRAM.— (1) STUDY.—Not later than 180 days after the effective date 

of the final rule issued pursuant to subsection (d), the Comptroller General of the United States shall— 

(A) conduct a study on the efficacy, adequacy, and sufficiency of the final rules issued pursuant to subsection (d); 

and 

(B) report to the Committee on Banking, Housing, and 

Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the findings 

of the study conducted under subparagraph (A). 

(2) GAO AUTHORITY.—In conducting the study and report 

required under paragraph (1), the Comptroller General— 

(A) may use any previous findings, studies, or reports 

that the Comptroller General previously completed on the 

Write Your Own program; 

(B) shall determine if— 

(i) the final rule issued pursuant to subsection (d) 

allows the Federal Emergency Management Agency to 

access adequate information regarding the actual expenses of property and casualty insurance companies 

participating in the Write Your Own program; and 

(ii) the actual reimbursements paid out under the 

final rule issued pursuant to subsection (d) accurately 

reflect the expenses reported by property and casualty 

insurance companies participating in the Write Your 

Own program, including the standard business costs 

and operating expenses of such companies; and 


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(C) shall analyze the effect of the final rule issued pursuant to subsection (d) on the level of participation of property and casualty insurers in the Write Your Own program. 

SEC. 100225. MITIGATION. 

(a) MITIGATION ASSISTANCE GRANTS.—Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended— 

(1) by striking subsections (b), (d), (f), (g), (h), (k), and (m); 

(2) by redesignating subsections (c), (e), (i), and (j) as subsections (b), (c), (e), and (f), respectively; 

(3) in subsection (a), by striking the last sentence and inserting the following: ‘‘Such financial assistance shall be made 

available— 

‘‘(1) to States and communities in the form of grants under 

this section for carrying out mitigation activities; 

‘‘(2) to States and communities in the form of grants under 

this section for carrying out mitigation activities that reduce 

flood damage to severe repetitive loss structures; and 

‘‘(3) to property owners in the form of direct grants under 

this section for carrying out mitigation activities that reduce 

flood damage to individual structures for which 2 or more 

claim payments for losses have been made under flood insurance coverage under this title if the Administrator, after consultation with the State and community, determines that neither the State nor community in which such a structure is located has the capacity to manage such grants.’’; 

(4) in subsection (b), as so redesignated, in the first sentence— 

(A) by striking ‘‘and provides protection against’’ and 

inserting ‘‘provides for reduction of’’; and 

(B) by inserting before the period at the end the following: ‘‘, and may be included in a multihazard mitigation plan’’; 

(5) in subsection (c), as so redesignated— 

(A) in paragraph (1), by striking ‘‘(1) USE OF

AMOUNTS.—’’ and all that follows through the end of the 

first sentence and inserting the following: 

‘‘(1) REQUIREMENT OF CONSISTENCY WITH APPROVED MITIGATION PLAN.—Amounts provided under this section may be 

used only for mitigation activities that are consistent with mitigation plans that are approved by the Administrator and identified under paragraph (4).’’; 

(B) by striking paragraphs (2), (3), and (4) and inserting the following new paragraphs: 

‘‘(2) REQUIREMENTS OF TECHNICAL FEASIBILITY, COST EFFECTIVENESS, AND INTEREST OF NATIONAL FLOOD INSURANCE

FUND.— 

‘‘(A) IN GENERAL.—The Administrator may approve 

only mitigation activities that the Administrator determines— 

‘‘(i) are technically feasible and cost-effective; or 

‘‘(ii) will eliminate future payments from the National Flood Insurance Fund for severe repetitive loss 

structures through an acquisition or relocation activity. 


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‘‘(B) CONSIDERATIONS.—In making a determination 

under subparagraph (A), the Administrator shall take into 

consideration recognized ancillary benefits.’’; 

(C) by redesignating paragraph (5) as paragraph (3); 

(D) in paragraph (3), as so redesignated— 

(i) in the matter preceding subparagraph (A), by 

striking ‘‘The Director’’ and all that follows through 

‘‘Such activities may’’ and inserting ‘‘Eligible activities 

under a mitigation plan may’’; 

(ii) by striking subparagraphs (E) and (H); 

(iii) by redesignating subparagraphs (D), (F), and 

(G) as subparagraphs (E), (G), and (H), respectively; 

(iv) by inserting after subparagraph (C) the following new subparagraph: 

‘‘(D) elevation, relocation, or floodproofing of utilities 

(including equipment that serves structures);’’; 

(v) by inserting after subparagraph (E), as so redesignated, the following new subparagraph: 

‘‘(F) the development or update of mitigation plans by 

a State or community which meet the planning criteria established by the Administrator, except that the amount 

from grants under this section that may be used under this 

subparagraph may not exceed $50,000 for any mitigation 

plan of a State or $25,000 for any mitigation plan of a 

community;’’; 

(vi) in subparagraph (H); as so redesignated, by 

striking ‘‘and’’ at the end; and 

(vii) by adding at the end the following new subparagraphs: 

‘‘(I) other mitigation activities not described in subparagraphs (A) through (G) or the regulations issued under 

subparagraph (H), that are described in the mitigation 

plan of a State or community; and 

‘‘(J) without regard to the requirements under paragraphs (1) and (2) of subsection (d), and if the State applied for and was awarded at least $1,000,000 in grants 

available under this section in the prior fiscal year, technical assistance to communities to identify eligible activities, to develop grant applications, and to implement grants 

awarded under this section, not to exceed $50,000 to any 1 

State in any fiscal year.’’; and 

(E) by striking paragraph (6) and inserting the following: 

‘‘(4) ELIGIBILITY OF DEMOLITION AND REBUILDING OF PROPERTIES.—The Administrator shall consider as an eligible activity the demolition and rebuilding of properties to at least base 

flood elevation or greater, if required by the Administrator or 

if required by any State regulation or local ordinance, and in 

accordance with criteria established by the Administrator.’’; 

(6) by inserting after subsection (c), as so redesignated, the 

following new subsection: 

‘‘(d) MATCHING REQUIREMENT.—The Administrator may provide grants for eligible mitigation activities as follows: 


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‘‘(1) SEVERE REPETITIVE LOSS STRUCTURES.—In the case of 

mitigation activities to severe repetitive loss structures, in an 

amount up to— 

‘‘(A) 100 percent of all eligible costs, if the activities are 

approved under subsection (c)(2)(A)(i); or 

‘‘(B) the expected savings to the National Flood Insurance Fund from expected avoided damages through acquisition or relocation activities, if the activities are approved 

under subsection (c)(2)(A)(ii). 

‘‘(2) REPETITIVE LOSS STRUCTURES.—In the case of mitigation activities to repetitive loss structures, in an amount up to 

90 percent of all eligible costs. 

‘‘(3) OTHER MITIGATION ACTIVITIES.—In the case of all other 

mitigation activities, in an amount up to 75 percent of all eligible costs.’’; 

(7) in subsection (e)(2), as so redesignated— 

(A) by striking ‘‘certified under subsection (g)’’ and inserting ‘‘required under subsection (d)’’; and 

(B) by striking ‘‘3 times the amount’’ and inserting ‘‘the 

amount’’; 

(8) in subsection (f), as so redesignated, by striking ‘‘Riegle 

Community Development and Regulatory Improvement Act of 

1994’’ and inserting ‘‘Biggert-Waters Flood Insurance Reform 

Act of 2012’’; and 

(9) by adding at the end the following new subsections: 

‘‘(g) FAILURE TO MAKE GRANT AWARD WITHIN 5 YEARS.—For 

any application for a grant under this section for which the Administrator fails to make a grant award within 5 years of the date of 

the application, the grant application shall be considered to be denied and any funding amounts allocated for such grant applications 

shall remain in the National Flood Mitigation Fund under section 

1367 of this title and shall be made available for grants under this 

section. 

‘‘(h) DEFINITIONS.—For purposes of this section, the following 

definitions shall apply: 

‘‘(1) COMMUNITY.—The term ‘community’ means— 

‘‘(A) a political subdivision that— 

‘‘(i) has zoning and building code jurisdiction over 

a particular area having special flood hazards; and 

‘‘(ii) is participating in the national flood insurance program; or 

‘‘(B) a political subdivision of a State, or other authority, that is designated by political subdivisions, all of which 

meet the requirements of subparagraph (A), to administer 

grants for mitigation activities for such political subdivisions. 

‘‘(2) REPETITIVE LOSS STRUCTURE.—The term ‘repetitive loss 

structure’ has the meaning given such term in section 1370. 

‘‘(3) SEVERE REPETITIVE LOSS STRUCTURE.—The term ‘severe repetitive loss structure’ means a structure that— 

‘‘(A) is covered under a contract for flood insurance 

made available under this title; and 

‘‘(B) has incurred flood-related damage— 

‘‘(i) for which 4 or more separate claims payments 

have been made under flood insurance coverage under 


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this title, with the amount of each such claim exceeding 

$5,000, and with the cumulative amount of such 

claims payments exceeding $20,000; or 

‘‘(ii) for which at least 2 separate claims payments 

have been made under such coverage, with the cumulative amount of such claims exceeding the value of the 

insured structure.’’. 

(b) ELIMINATION OF GRANTS PROGRAM FOR REPETITIVE INSUR- ANCE CLAIMS PROPERTIES.—Chapter I of the National Flood Insurance Act of 1968 is amended by striking section 1323 (42 U.S.C. 

4030). 

(c) ELIMINATION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chapter III of the National 

Flood Insurance Act of 1968 is amended by striking section 1361A 

(42 U.S.C. 4102a). 

(d) NATIONAL FLOOD INSURANCE FUND.—Section 1310(a) of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended— 

(1) in paragraph (6), by inserting ‘‘and’’ after the semicolon; 

(2) in paragraph (7), by striking the semicolon and inserting a period; and 

(3) by striking paragraphs (8) and (9). 

(e) NATIONAL FLOOD MITIGATION FUND.—Section 1367 of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended— 

(1) in subsection (b)— 

(A) by striking paragraph (1) and inserting the following new paragraph: 

‘‘(1) in each fiscal year, amounts from the National Flood Insurance Fund not to exceed $90,000,000 and to remain available until expended, of which— ‘‘(A) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(1); 

‘‘(B) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(2); and 

‘‘(C) not more than $10,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 1366(a)(3);’’; and 

(B) in paragraph (3), by striking ‘‘section 1366(i)’’ and 

inserting ‘‘section 1366(e)’’; 

(2) in subsection (c), by striking ‘‘sections 1366 and 1323’’ 

and inserting ‘‘section 1366’’; 

(3) by redesignating subsections (d) and (e) as subsections 

(f) and (g), respectively; and 

(4) by inserting after subsection (c) the following new subsections: 

‘‘(d) PROHIBITION ON OFFSETTING COLLECTIONS.—Notwithstanding any other provision of this title, amounts made available 

pursuant to this section shall not be subject to offsetting collections 

through premium rates for flood insurance coverage under this title. 

‘‘(e) CONTINUED AVAILABILITY AND REALLOCATION.—Any 

amounts made available pursuant to subparagraph (A), (B), or (C) 

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tinue to be available for the purposes specified in the subparagraph 

of subsection (b)(1) pursuant to which such amounts were made 

available, unless the Administrator determines that reallocation of 

such unused amounts to meet demonstrated need for other mitigation activities under section 1366 is in the best interest of the National Flood Insurance Fund.’’. 

(f) INCREASED COST OF COMPLIANCE COVERAGE.—Section 

1304(b)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 

4011(b)(4)) is amended— 

(1) by striking subparagraph (B); and 

(2) by redesignating subparagraphs (C), (D), and (E) as 

subparagraphs (B), (C), and (D), respectively. 

SEC. 100226. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK 

FORCE. 

(a) DEFINITIONS.—In this section— 

(1) the term ‘‘flood protection structure accreditation requirements’’ means the requirements established under section 

65.10 of title 44, Code of Federal Regulations, for levee systems 

to be recognized on maps created for purposes of the National 

Flood Insurance Program; 

(2) the term ‘‘National Committee on Levee Safety’’ means 

the Committee on Levee Safety established under section 9003 

of the National Levee Safety Act of 2007 (33 U.S.C. 3302); and 

(3) the term ‘‘task force’’ means the Flood Protection Structure Accreditation Task Force established under subsection (b). 

(b) ESTABLISHMENT.— 

(1) IN GENERAL.—The Administrator and the Secretary of 

the Army, acting through the Chief of Engineers, in cooperation 

with the National Committee on Levee Safety, shall jointly establish a Flood Protection Structure Accreditation Task Force. 

(2) DUTIES.— 

(A) DEVELOPING PROCESS.—The task force shall develop a process to better align the information and data collected by or for the Corps of Engineers under the Inspection 

of Completed Works Program with the flood protection 

structure accreditation requirements so that— 

(i) information and data collected for either purpose can be used interchangeably; and 

(ii) information and data collected by or for the 

Corps of Engineers under the Inspection of Completed 

Works Program is sufficient to satisfy the flood protection structure accreditation requirements. 

(B) GATHERING RECOMMENDATIONS.—The task force 

shall gather, and consider in the process developed under 

subparagraph (A), recommendations from interested persons in each region relating to the information, data, and 

accreditation requirements described in subparagraph (A). 

(3) CONSIDERATIONS.—In developing the process under 

paragraph (2), the task force shall consider changes to— 

(A) the information and data collected by or for the 

Corps of Engineers under the Inspection of Completed 

Works Program; and 

(B) the flood protection structure accreditation requirements. 


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(4) RULE OF CONSTRUCTION.—Nothing in this section shall 

be construed to require a reduction in the level of public safety 

and flood control provided by accredited levees, as determined 

by the Administrator for purposes of this section. 

(c) IMPLEMENTATION.—The Administrator and the Secretary of 

the Army, acting through the Chief of Engineers, shall implement 

the process developed by the task force under subsection (b) not later 

than 1 year after the date of enactment of this Act and shall complete the process under subsection (b) not later than 2 years after 

the date of enactment of this Act. 

(d) REPORTS.—The Administrator and the Secretary of the 

Army, acting through the Chief of Engineers, in cooperation with 

the National Committee on Levee Safety, shall jointly submit to the 

Committee on Banking, Housing, and Urban Affairs and the Committee on Environment and Public Works of the Senate and the 

Committee on Financial Services, the Committee on Transportation 

and Infrastructure, and the Committee on Natural Resources of the 

House of Representatives reports concerning the activities of the task 

force and the implementation of the process developed by the task 

force under subsection (b), including— 

(1) an interim report, not later than 180 days after the date 

of enactment of this Act; and 

(2) a final report, not later than 1 year after the date of enactment of this Act. 

(e) TERMINATION.—The task force shall terminate on the date of 

submission of the report under subsection (d)(2). 

SEC. 100227. FLOOD IN PROGRESS DETERMINATIONS. 

(a) REPORT.— (1) REVIEW.—The Administrator shall review— 

(A) the processes and procedures for determining that 

a flood event has commenced or is in progress for purposes 

of flood insurance coverage made available under the National Flood Insurance Program; 

(B) the processes and procedures for providing public 

notification that such a flood event has commenced or is in 

progress; 

(C) the processes and procedures regarding the timing 

of public notification of flood insurance requirements and 

availability; and 

(D) the effects and implications that weather conditions, including rainfall, snowfall, projected snowmelt, existing water levels, and other conditions, have on the determination that a flood event has commenced or is in 

progress. 

(2) REPORT.—Not later than 6 months after the date of enactment of this Act, the Administrator shall submit a report to 

Congress that describes— 

(A) the results and conclusions of the review under 

paragraph (1); and 

(B) any actions taken, or proposed actions to be taken, 

by the Administrator to provide for more precise and technical processes and procedures for determining that a flood 

event has commenced or is in progress. 

(b) EFFECTIVE DATE OF POLICIES COVERING PROPERTIES AFFECTED BY FLOODING OF THE MISSOURI RIVER IN 2011.— 


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(1) ELIGIBLE COVERAGE.—For purposes of this subsection, 

the term ‘‘eligible coverage’’ means coverage under a new contract for flood insurance coverage under the National Flood Insurance Program, or a modification to coverage under an existing flood insurance contract, for property damaged by the flooding of the Missouri River that commenced on June 1, 2011, that 

was purchased or made during the period beginning May 1, 

2011, and ending June 6, 2011. 

(2) EFFECTIVE DATES.—Notwithstanding section 1306(c) of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), 

or any other provision of law, any eligible coverage shall— 

(A) be deemed to take effect on the date that is 30 days 

after the date on which all obligations for the eligible coverage (including completion of the application and payment 

of any initial premiums owed) are satisfactorily completed; 

and 

(B) cover damage to property occurring after the effective date described in subparagraph (A) that resulted from 

the flooding of the Missouri River that commenced on June 

1, 2011, if the property did not suffer damage or loss as a 

result of such flooding before the effective date described in 

subparagraph (A). 

(c) TIMELY NOTIFICATION.—Not later than 90 days after the 

date on which the Administrator submits the report required under 

subsection (a)(2), the Administrator shall, taking into consideration 

the results of the review under subsection (a)(1)(B), develop procedures for providing timely notification, to the extent practicable, to 

policyholders who have purchased flood insurance coverage under 

the National Flood Insurance Program within 30 days of a determination of a flood in progress and who may be affected by the 

flood of the determination and how the determination may affect 

their coverage. 

SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE LIMITS. 

Section 1306(b) of the National Flood Insurance Act of 1968 (42 

U.S.C. 4013(b)) is amended— 

(1) in paragraph (2)— 

(A) by striking ‘‘in the case of any residential property’’ 

and inserting ‘‘in the case of any residential building designed for the occupancy of from 1 to 4 families’’; and 

(B) by striking ‘‘shall be made available to every insured upon renewal and every applicant for insurance so as 

to enable such insured or applicant to receive coverage up 

to a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000’’ and inserting ‘‘shall be made 

available, with respect to any single such building, up to 

an aggregate liability (including such limits specified in 

paragraph (1)(A)(i)) of $250,000’’; and 

(2) in paragraph (4)— 

(A) by striking ‘‘in the case of any nonresidential property, including churches,’’ and inserting ‘‘in the case of any 

nonresidential building, including a church,’’; and 

(B) by striking ‘‘shall be made available to every insured upon renewal and every applicant for insurance, in 

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cluding such limit specified in subparagraph (B) or (C) of 

paragraph (1), as applicable) of $500,000 for each structure 

and $500,000 for any contents related to each structure’’ 

and inserting ‘‘shall be made available with respect to any 

single such building, up to an aggregate liability (including 

such limits specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000, and coverage shall be 

made available up to a total of $500,000 aggregate liability 

for contents owned by the building owner and $500,000 aggregate liability for each unit within the building for contents owned by the tenant’’. 

SEC. 100229. LOCAL DATA REQUIREMENT. 

(a) IN GENERAL.—Notwithstanding any other provision of this 

subtitle, no area or community participating in the National Flood 

Insurance Program that is or includes a community that is identified by the Administrator as Community Identification Number 

360467 and impacted by the Jamaica Bay flooding source or identified by the Administrator as Community Identification Number 

360495 may be or become designated as an area having special 

flood hazards for purposes of the National Flood Insurance Program, unless the designation is made on the basis of— 

(1) flood hazard analyses of hydrologic, hydraulic, or coastal flood hazards that have been properly calibrated and validated, and are specific and directly relevant to the geographic 

area being studied; and 

(2) ground elevation information of sufficient accuracy and 

precision to meet the guidelines of the Administration for accuracy at the 95 percent confidence level. 

(b) REMAPPING.— 

(1) REMAPPING REQUIRED.—If the Administrator determines 

that an area described in subsection (a) has been designated as 

an area of special flood hazard on the basis of information that 

does not comply with the requirements under subsection (a), the 

Administrator shall revise and update any National Flood Insurance Program rate map for the area— 

(A) using information that complies with the requirements under subsection (a); and 

(B) in accordance with the procedures established 

under section 1363 of the National Flood Insurance Act of 

1968 (42 U.S.C. 4104) for flood elevation determinations. 

(2) INTERIM PERIOD.—A National Flood Insurance Program 

rate map in effect on the date of enactment of this Act for an 

area for which the Administrator has made a determination 

under paragraph (1) shall continue in effect with respect to the 

area during the period— 

(A) beginning on the date of enactment of this Act; and 

(B) ending on the date on which the Administrator determines that the requirements under section 1363 of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4104) for 

flood elevation determinations have been met with respect 

to a revision and update under paragraph (1) of a National 

Flood Insurance Program rate map for the area. 

(3) DEADLINE.—The Administrator shall issue a preliminary National Flood Insurance Program rate map resulting 


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from a revision and update required under paragraph (1) not 

later than 1 year after the date of enactment of this Act. 

(4) RISK PREMIUM RATE CLARIFICATION.— 

(A) IN GENERAL.—If a revision and update required 

under paragraph (1) results in a reduction in the risk premium rate for a property in an area for which the Administrator has made a determination under paragraph (1), the 

Administrator shall— 

(i) calculate the difference between the reduced risk 

premium rate and the risk premium rate paid by a policyholder with respect to the property during the period— 

(I) beginning on the date on which the National Flood Insurance Program rate map in effect 

for the area on the date of enactment of this Act 

took effect; and 

(II) ending on the date on which the revised or 

updated National Flood Insurance Program rate 

map takes effect; and 

(ii) reimburse the policyholder an amount equal to 

such difference. 

(B) FUNDING.—Notwithstanding section 1310 of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4017), 

there shall be available to the Administrator from premiums deposited in the National Flood Insurance Fund 

pursuant to subsection (d) of such section 1310, of amounts 

not otherwise obligated, the amount necessary to carry out 

this paragraph. 

(c) TERMINATION.— 

(1) IN GENERAL.—Except as provided in paragraph (2), this 

section shall cease to have effect on the effective date of a National Flood Insurance Program rate map revised and updated 

under subsection (b)(1). 

(2) REIMBURSEMENTS.—Subsection (b)(4) shall cease to 

have effect on the date on which the Administrator has made 

all reimbursements required under subsection (b)(4). 

SEC. 100230. ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS RESIDING IN COMMUNITIES THAT HAVE MADE ADEQUATE 

PROGRESS ON THE RECONSTRUCTION OR IMPROVEMENT 

OF A FLOOD PROTECTION SYSTEM. 

(a) ELIGIBILITY FOR FLOOD INSURANCE COVERAGE.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

law (including section 1307(e) of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4014(e))), a person residing in a community that the Administrator determines has made adequate 

progress on the reconstruction or improvement of a flood protection system that will afford flood protection for a 100-year 

floodplain (without regard to the level of Federal funding of or 

participation in the construction, reconstruction, or improvement), shall be eligible for flood insurance coverage under the 

National Flood Insurance Program— 

(A) if the person resides in a community that is a participant in the National Flood Insurance Program; and 


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(B) at a risk premium rate that does not exceed the risk 

premium rate that would be chargeable if the flood protection system had been completed. 

(2) ADEQUATE PROGRESS.— (A) RECONSTRUCTION OR IMPROVEMENT.—For purposes 

of paragraph (1), the Administrator shall determine that a 

community has made adequate progress on the reconstruction or improvement of a flood protection system if— 

(i) 100 percent of the project cost has been authorized; 

(ii) not less than 60 percent of the project cost has 

been secured or appropriated; 

(iii) not less than 50 percent of the flood protection 

system has been assessed as being without deficiencies; 

and 

(iv) the reconstruction or improvement has a 

project schedule that does not exceed 5 years, beginning 

on the date on which the reconstruction or construction 

of the improvement commences. 

(B) CONSIDERATIONS.—In determining whether a flood 

protection system has been assessed as being without deficiencies, the Administrator shall consider the requirements 

under section 65.10 of chapter 44, Code of Federal Regulations, or any successor thereto. 

(C) DATE OF COMMENCEMENT.—For purposes of subparagraph (A)(iv) of this paragraph and subsection 

(b)(2)(B), the date of commencement of the reconstruction or 

improvement of a flood protection system that is undergoing reconstruction or improvement on the date of enactment of this Act shall be deemed to be the date on which 

the owner of the flood protection system submits a request 

under paragraph (3). 

(3) REQUEST FOR DETERMINATION.—The owner of a flood 

protection system that is undergoing reconstruction or improvement on the date of enactment of this Act may submit to the Administrator a request for a determination under paragraph (2) 

that the community in which the flood protection system is located has made adequate progress on the reconstruction or improvement of the flood protection system. 

(4) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to prohibit the Administrator from making 

a determination under paragraph (2) for any community in 

which a flood protection system is not undergoing reconstruction or improvement on the date of enactment of this Act. 

(b) TERMINATION OF ELIGIBILITY.— 

(1) ADEQUATE CONTINUING PROGRESS.—The Administrator 

shall issue rules to establish a method of determining whether 

a community has made adequate continuing progress on the reconstruction or improvement of a flood protection system that 

includes— 

(A) a requirement that the Administrator shall— 

(i) consult with the owner of the flood protection 

system— 

(I) 6 months after the date of a determination 

under subsection (a); 


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(II) 18 months after the date of a determination under subsection (a); and 

(III) 36 months after the date of a determination under subsection (a); and 

(ii) after each consultation under clause (i), determine whether the reconstruction or improvement is reasonably likely to be completed in accordance with the 

project schedule described in subsection (a)(2)(A)(iv); 

and 

(B) a requirement that, if the Administrator makes a 

determination under subparagraph (A)(ii) that reconstruction or improvement is not reasonably likely to be completed in accordance with the project schedule, the Administrator shall— 

(i) not later than 30 days after the date of the determination, notify the owner of the flood protection 

system of the determination and provide the rationale 

and evidence for the determination; and 

(ii) provide the owner of the flood protection system 

the opportunity to appeal the determination. 

(2) TERMINATION.—The Administrator shall terminate the 

eligibility for flood insurance coverage under subsection (a) for 

persons residing in a community with respect to which the Administrator made a determination under subsection (a) if— 

(A) the Administrator determines that the community 

has not made adequate continuing progress; or 

(B) on the date that is 5 years after the date on which 

the reconstruction or construction of the improvement commences, the project has not been completed. 

(3) WAIVER.—A person whose eligibility would otherwise be 

terminated under paragraph (2)(B) shall continue to be eligible 

to purchase flood insurance coverage described in subsection (a) 

if the Administrator determines— 

(A) the community has made adequate continuing 

progress on the reconstruction or improvement of a flood 

protection system; and 

(B) there is a reasonable expectation that the reconstruction or improvement of the flood protection system will 

be completed not later than 1 year after the date of the determination under this paragraph. 

(4) RISK PREMIUM RATE.—If the Administrator terminates 

the eligibility of persons residing in a community to purchase 

flood insurance coverage described in subsection (a), the Administrator shall establish an appropriate risk premium rate for 

flood insurance coverage under the National Flood Insurance 

Program for persons residing in the community that purchased 

flood insurance coverage before the date on which the termination of eligibility takes effect, taking into consideration the 

then-current state of the flood protection system. 

(c) ADDITIONAL AUTHORITY.— (1) ADDITIONAL AUTHORITY.—Notwithstanding subsection 

(a), in exceptional and exigent circumstances, the Administrator 

may, in the Administrator’s sole discretion, determine that a 

person residing in a community, which is a participant in the 

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tion or improvement of a flood protection system that will afford flood protection for a 100-year floodplain (without regard 

to the level of Federal funding of or participation in the reconstruction or improvement) shall be eligible for flood insurance 

coverage under the National Flood Insurance Program at a risk 

premium rate that does not exceed the risk premium rate that 

would be chargeable if the flood protection system had been 

completed, provided— 

(A) the community makes a written request for the determination setting forth the exceptional and exigent circumstances, including why the community cannot meet the 

criteria for adequate progress set forth in under subsection 

(a)(2)(A) and why immediate relief is necessary; 

(B) the Administrator submits a written report setting 

forth findings of the exceptional and exigent circumstances 

on which the Administrator based an affirmative determination to the Committee on Banking, Housing, and 

Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives not later than 

15 days before making the determination; and 

(C) the eligibility for flood insurance coverage at a risk 

premium rate determined under this subsection terminates 

no later than 1 year after the date on which the Administrator makes the determination. 

(2) LIMITATION.—Upon termination of eligibility under 

paragraph (1)(C), a community may submit another request 

pursuant to paragraph (1)(A). The Administrator may make no 

more than two determinations under paragraph (1) with respect 

to persons residing within any single requesting community. 

(3) TERMINATION.—The authority provided under paragraphs (1) and (2) shall terminate two years after the enactment 

of this Act. 

SEC. 100231. STUDIES AND REPORTS. 

(a) REPORT ON IMPROVING THE NATIONAL FLOOD INSURANCE

PROGRAM.—Not later than 1 year after the date of enactment of this 

Act, the Comptroller General of the United States shall conduct a 

study and submit a report to the Committee on Banking, Housing, 

and Urban Affairs of the Senate and the Committee on Financial 

Services of the House of Representatives, on— 

(1) the number of flood insurance policy holders currently 

insuring— 

(A) a residential structure up to the maximum available coverage amount, as established in section 61.6 of title 

44, Code of Federal Regulations, of— 

(i) $250,000 for the structure; and 

(ii) $100,000 for the contents of such structure; or 

(B) a commercial structure up to the maximum available coverage amount, as established in section 61.6 of title 

44, Code of Federal Regulations, of $500,000; 

(2) the increased losses the National Flood Insurance Program would have sustained during the 2004 and 2005 hurricane season if the National Flood Insurance Program had insured all policyholders up to the maximum conforming loan 

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tion 302(b)(2) of the Federal National Mortgage Association 

Charter Act (12 U.S.C. 1717(b)(2)); 

(3) the availability in the private marketplace of flood insurance coverage in amounts that exceed the current limits of 

coverage amounts established in section 61.6 of title 44, Code 

of Federal Regulations; and 

(4) what effect, if any— 

(A) raising the current limits of coverage amounts established in section 61.6 of title 44, Code of Federal Regulations, would have on the ability of private insurers to continue providing flood insurance coverage; and 

(B) reducing the current limits of coverage amounts established in section 61.6 of title 44, Code of Federal Regulations, would have on the ability of private insurers to provide sufficient flood insurance coverage to effectively replace 

the current level of flood insurance coverage being provided 

under the National Flood Insurance Program. 

(b) REPORT OF THE ADMINISTRATOR ON ACTIVITIES UNDER THE

NATIONAL FLOOD INSURANCE PROGRAM.— 

(1) IN GENERAL.—The Administrator shall, on an annual 

basis, submit a full report on the operations, activities, budget, 

receipts, and expenditures of the National Flood Insurance Program for the preceding 12-month period to the Committee on 

Banking, Housing, and Urban Affairs of the Senate and the 

Committee on Financial Services of the House of Representatives. 

(2) TIMING.—Each report required under paragraph (1) 

shall be submitted to the committees described in paragraph (1) 

not later than 3 months following the end of each fiscal year. 

(3) CONTENTS.—Each report required under paragraph (1) 

shall include— 

(A) the current financial condition and income statement of the National Flood Insurance Fund established 

under section 1310 of the National Flood Insurance Act of 

1968 (42 U.S.C. 4017), including— 

(i) premiums paid into such Fund; 

(ii) policy claims against such Fund; and 

(iii) expenses in administering such Fund; 

(B) the number and face value of all policies issued 

under the National Flood Insurance Program that are in 

force; 

(C) a description and summary of the losses attributable to repetitive loss structures; 

(D) a description and summary of all losses incurred 

by the National Flood Insurance Program due to— 

(i) hurricane related damage; and 

(ii) nonhurricane related damage; 

(E) the amounts made available by the Administrator 

for mitigation assistance under section 1366(c)(4) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c(c)(4)), 

as so redesignated by this Act, for the purchase of properties substantially damaged by flood for that fiscal year, 

and the actual number of flood damaged properties purchased and the total cost expended to purchase such properties; 


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(F) the estimate of the Administrator as to the average 

historical loss year, and the basis for that estimate; 

(G) the estimate of the Administrator as to the maximum amount of claims that the National Flood Insurance 

Program would have to expend in the event of a catastrophic year; 

(H) the average— 

(i) amount of insurance carried per flood insurance 

policy; 

(ii) premium per flood insurance policy; and 

(iii) loss per flood insurance policy; and 

(I) the number of claims involving damages in excess 

of the maximum amount of flood insurance available under 

the National Flood Insurance Program and the sum of the 

amount of all damages in excess of such amount. 

(c) GAO STUDY ON PRE-FIRM STRUCTURES.—Not later than 1 

year after the date of enactment of this Act, the Comptroller General 

of the United States shall conduct a study and submit a report to 

the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, on the— 

(1) composition of the remaining pre-FIRM structures that 

are explicitly receiving discounted premium rates under section 

1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 

4014), including the historical basis for the receipt of such subsidy and the extent to which pre-FIRM structures are currently 

owned by the same owners of the property at the time of the 

original National Flood Insurance Program rate map; 

(2) number and fair market value of such structures; 

(3) respective income level of the owners of such structures; 

(4) number of times each such structure has been sold since 

1968, including specific dates, sales price, and any other information the Secretary determines appropriate; 

(5) total losses incurred by such structures since the establishment of the National Flood Insurance Program compared to 

the total losses incurred by all structures that are charged a 

nondiscounted premium rate; 

(6) total cost of foregone premiums since the establishment 

of the National Flood Insurance Program, as a result of the 

subsidies provided to such structures; 

(7) annual cost as a result of the subsidies provided to such 

structures; 

(8) the premium income collected and the losses incurred by 

the National Flood Insurance Program as a result of such explicitly subsidized structures compared to the premium income 

collected and the losses incurred by such Program as a result 

of structures that are charged a nondiscounted premium rate, 

on a State-by-State basis; and 

(9) the options for eliminating the subsidy to such structures. 

(d) GAO REVIEW OF FEMA CONTRACTORS.—The Comptroller 

General of the United States, in conjunction with the Office of the 

Inspector General of the Department of Homeland Security, shall— 


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(1) conduct a review of the 3 largest contractors the Administrator uses in administering the National Flood Insurance 

Program; and 

(2) not later than 18 months after the date of enactment of 

this Act, submit a report on the findings of such review to the 

Administrator, the Committee on Banking, Housing, and Urban 

Affairs of the Senate, and the Committee on Financial Services 

of the House of Representatives. 

(e) STUDY AND REPORT ON GRADUATED RISK.— (1) STUDY.— (A) STUDY REQUIRED.—The Administrator shall enter 

into a contract under which the National Academy of 

Sciences shall conduct a study exploring methods for understanding graduated risk behind levees and the associated land development, insurance, and risk communication 

dimensions. 

(B) CONTENTS OF STUDY.—The study under this paragraph shall— 

(i) research, review, and recommend current best 

practices for estimating direct annualized flood losses 

behind levees for residential and commercial structures; 

(ii) rank each best practice recommended under 

clause (i) based on the best value, balancing cost, scientific integrity, and the inherent uncertainties associated with all aspects of the loss estimate, including 

geotechnical engineering, flood frequency estimates, 

economic value, and direct damages; 

(iii) research, review, and identify current best 

floodplain management and land use practices behind 

levees that effectively balance social, economic, and environmental considerations as part of an overall flood 

risk management strategy; 

(iv) identify areas in which the best floodplain 

management and land use practices described in 

clause (iii) have proven effective and recommend methods and processes by which such practices could be applied more broadly across the United States, given the 

variety of different flood risks, State and local legal 

frameworks, and evolving judicial opinions; 

(v) research, review, and identify a variety of flood 

insurance pricing options for flood hazards behind levees that are actuarially sound and based on the flood 

risk data developed using the 3 best practices recommended under clause (i) that have the best value as 

determined under clause (ii); 

(vi) evaluate and recommend methods to reduce insurance costs through creative arrangements between 

insureds and insurers while keeping a clear accounting 

of how much financial risk is being borne by various 

parties such that the entire risk is accounted for, including establishment of explicit limits on disaster aid 

or other assistance in the event of a flood; and 

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proaches to communicate the associated risks to community officials, homeowners, and other residents of 

communities. 

(2) REPORT.—The contract under paragraph (1)(A) shall 

provide that not later than 12 months after the date of enactment of this Act, the National Academy of Sciences shall submit 

to the Committee on Banking, Housing, and Urban Affairs of 

the Senate and the Committee on Financial Services and the 

Committee on Science, Space, and Technology of the House of 

Representatives a report on the study under paragraph (1) that 

includes the information and recommendations required under 

paragraph (1). 

SEC. 100232. REINSURANCE. 

(a) FEMA AND GAO REPORTS ON PRIVATIZATION.—Not later 

than 18 months after the date of enactment of this Act, the Administrator and the Comptroller General of the United States shall 

each— 

(1) conduct a separate study to assess a broad range of options, methods, and strategies for privatizing the National 

Flood Insurance Program; and 

(2) submit a report to the Committee on Financial Services 

of the House of Representatives and the Committee on Banking, 

Housing, and Urban Affairs of the Senate with recommendations for the best manner to accomplish the privatization described in paragraph (1). 

(b) PRIVATE RISK-MANAGEMENT INITIATIVES.—The Administrator may carry out such private risk-management initiatives as 

are otherwise authorized under applicable law, as the Administrator considers appropriate to determine the capacity of private insurers, reinsurers, and financial markets to assist communities, on 

a voluntary basis only, in managing the full range of financial risks 

associated with flooding. 

(c) REINSURANCE ASSESSMENT.— (1) PRIVATE MARKET PRICING ASSESSMENT.—Not later than 

12 months after the date of enactment of this Act, the Administrator shall submit to Congress a report that— 

(A) assesses the capacity of the private reinsurance, 

capital, and financial markets to assist communities, on a 

voluntary basis, in managing the full range of financial 

risks associated with flooding by requesting proposals to 

assume a portion of the insurance risk of the National 

Flood Insurance Program; 

(B) describes any responses to the request for proposals 

under subparagraph (A); 

(C) assesses whether the rates and terms contained in 

any proposals received by the Administrator are— 

(i) reasonable and appropriate; and 

(ii) in an amount sufficient to maintain the ability 

of the National Flood Insurance Program to pay 

claims; 

(D) describes the extent to which carrying out the proposals received by the Administrator would minimize the 

likelihood that the Administrator would use the borrowing 

authority under section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016); 


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(E) describes fluctuations in historical reinsurance 

rates; and 

(F) includes an economic cost-benefit analysis of the 

impact on the National Flood Insurance Program if the Administrator were to exercise the authority under section 

1335(a)(2) of the National Flood Insurance Act of 1968 (42 

U.S.C. 4055(a)(2)), as added by this section, to secure reinsurance of coverage provided by the National Flood Insurance Program from the private market. 

(2) PROTOCOL FOR RELEASE OF DATA.—The Administrator 

shall develop a protocol, including adequate privacy protections, 

to provide for the release of data sufficient to conduct the assessment required under paragraph (1). 

(d) REINSURANCE.—The National Flood Insurance Act of 1968 

(42 U.S.C. 4001 et seq.) is amended— 

(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by inserting 

‘‘, including as reinsurance of coverage provided by the flood insurance program’’ before ‘‘, on such terms’’; 

(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by inserting 

‘‘or reinsurance’’ after ‘‘flood insurance coverage’’; 

(3) in section 1335(a) (42 U.S.C. 4055(a))— 

(A) by striking ‘‘The Director’’ and inserting the following: 

‘‘(1) IN GENERAL.—The Administrator’’; and 

(B) by adding at the end the following: 

‘‘(2) PRIVATE REINSURANCE.—The Administrator is authorized to secure reinsurance of coverage provided by the flood insurance program from the private market at rates and on terms 

determined by the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the 

program to pay claims.’’; 

(4) in section 1346(a) (42 U.S.C. 4082(a))— 

(A) in the matter preceding paragraph (1), by inserting 

after ‘‘for the purpose of’’ the following: ‘‘securing reinsurance of insurance coverage provided by the program or for 

the purpose of’’; 

(B) in paragraph (1)— 

(i) by striking ‘‘estimating’’ and inserting ‘‘Estimating’’; and 

(ii) by striking the semicolon at the end and inserting a period; 

(C) in paragraph (2)— 

(i) by striking ‘‘receiving’’ and inserting ‘‘Receiving’’; and 

(ii) by striking the semicolon at the end and inserting a period; 

(D) in paragraph (3)— 

(i) by striking ‘‘making’’ and inserting ‘‘Making’’; 

and 

(ii) by striking ‘‘μ1A‘; and’μ1A’’ and inserting a period; 

(E) by redesignating paragraph (4) as paragraph (5); 

(F) in paragraph (5), as so redesignated, by striking 

‘‘otherwise’’ and inserting ‘‘Otherwise’’; and 


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(G) by inserting after paragraph (3) the following new 

paragraph: 

‘‘(4) Placing reinsurance coverage on insurance provided by 

such program.’’; and 

(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by striking 

‘‘include any’’ and all that follows and inserting the following: 

‘‘include any organization or person that is authorized to engage in the business of insurance under the laws of any State, 

subject to the reporting requirements of the Securities Exchange 

Act of 1934 pursuant to section 13(a) or 15(d) of such Act (15 

U.S.C. 78m(a) and 78o(d)), or authorized by the Administrator 

to assume reinsurance on risks insured by the flood insurance 

program;’’. 

(e) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 

(1) ASSESSMENT.— 

(A) ASSESSMENT REQUIRED.— 

(i) IN GENERAL.—Not later than September 30 of 

each year, the Administrator shall conduct an assessment of the ability of the National Flood Insurance 

Program to pay claims. 

(ii) PRIVATE MARKET REINSURANCE.—The assessment under this paragraph for any year in which the 

Administrator exercises the authority under section 

1335(a)(2) of the National Flood Insurance Act of 1968 

(42 U.S.C. 4055(a)(2)), as added by this section, to secure reinsurance of coverage provided by the National 

Flood Insurance Program from the private market 

shall include information relating the use of private 

sector reinsurance and reinsurance equivalents by the 

Administrator, whether or not the Administrator used 

the borrowing authority under section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016). 

(iii) FIRST ASSESSMENT.—The Administrator shall 

conduct the first assessment required under this paragraph not later than September 30, 2012. 

(B) CONSIDERATIONS.—In conducting an assessment 

under subparagraph (A), the Administrator shall take into 

consideration regional concentrations of coverage written by 

the National Flood Insurance Program, peak flood zones, 

and relevant mitigation measures. 

(2) ANNUAL REPORT OF THE ADMINISTRATOR OF ACTIVITIES

UNDER THE NATIONAL FLOOD INSURANCE PROGRAM.—The Administrator shall— 

(A) include the results of each assessment in the report 

required under section 100231(b); and 

(B) not later than 30 days after the date on which the 

Administrator completes an assessment required under 

paragraph (1), make the results of the assessment available 

to the public. 

SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL LIVING EXPENSES COVERAGES. 

(a) STUDY.—The Comptroller General of the United States shall 

conduct a study concerning— 


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(1) the availability of additional living expenses and business interruption coverage in the private marketplace for flood 

insurance; 

(2) the feasibility of allowing the National Flood Insurance 

Program to offer such coverage at the option of the consumer; 

(3) the estimated cost to consumers if the National Flood 

Insurance Program priced such optional coverage at true actuarial rates; 

(4) the impact such optional coverage would have on consumer participation in the National Flood Insurance Program; 

and 

(5) the fiscal impact such optional coverage would have 

upon the National Flood Insurance Fund if such optional coverage were included in the National Flood Insurance Program, 

as described in paragraph (2), at the price described in paragraph (3). 

(b) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Comptroller General shall submit to the Committee 

on Banking, Housing, and Urban Affairs of the Senate and the 

Committee on Financial Services of the House of Representatives a 

report containing the results of the study under subsection (a). 

SEC. 100234. POLICY DISCLOSURES. 

(a) IN GENERAL.—Notwithstanding any other provision of law, 

in addition to any other disclosures that may be required, each policy under the National Flood Insurance Program shall state all conditions, exclusions, and other limitations pertaining to coverage 

under the subject policy, regardless of the underlying insurance 

product, in plain English, in boldface type, and in a font size that 

is twice the size of the text of the body of the policy. 

(b) VIOLATIONS.—The Administrator may impose a civil penalty 

of not more than $50,000 on any person that fails to comply with 

subsection (a). 

SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN MANAGEMENT CRITERIA. 

Not later than 6 months after the date of enactment of this Act, 

the Administrator of the Federal Emergency Management Agency 

shall conduct a study and submit a report to the Committee on 

Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives regarding the impact, effectiveness, and feasibility of amending section 

1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) 

to include widely used and nationally recognized building codes as 

part of the floodplain management criteria developed under such 

section, and shall determine— 

(1) the regulatory, financial, and economic impacts of such 

a building code requirement on homeowners, States and local 

communities, local land use policies, and the Federal Emergency Management Agency; 

(2) the resources required of State and local communities to 

administer and enforce such a building code requirement; 

(3) the effectiveness of such a building code requirement in 

reducing flood-related damage to buildings and contents; 

(4) the impact of such a building code requirement on the 

actuarial soundness of the National Flood Insurance Program; 


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(5) the effectiveness of nationally recognized codes in allowing innovative materials and systems for flood-resistant construction; 

(6) the feasibility and effectiveness of providing an incentive 

in lower premium rates for flood insurance coverage under such 

Act for structures meeting whichever of such widely used and 

nationally recognized building codes or any applicable local 

building codes provides greater protection from flood damage; 

(7) the impact of such a building code requirement on rural 

communities with different building code challenges than urban 

communities; and 

(8) the impact of such a building code requirement on Indian reservations. 

SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CERTAIN POLICYHOLDERS. 

(a) FEMA STUDY.—The Administrator shall conduct a study 

of— 

(1) methods to encourage and maintain participation in the 

National Flood Insurance Program; 

(2) methods to educate consumers about the National Flood 

Insurance Program and the flood risk associated with their 

property; 

(3) methods for establishing an affordability framework for 

the National Flood Insurance Program, including methods to 

aid individuals to afford risk-based premiums under the National Flood Insurance Program through targeted assistance 

rather than generally subsidized rates, including means-tested 

vouchers; and 

(4) the implications for the National Flood Insurance Program and the Federal budget of using each such method. 

(b) NATIONAL ACADEMY OF SCIENCES ECONOMIC ANALYSIS.—To 

inform the Administrator in the conduct of the study under subsection (a), the Administrator shall enter into a contract under 

which the National Academy of Sciences, in consultation with the 

Comptroller General of the United States, shall conduct and submit 

to the Administrator an economic analysis of the costs and benefits 

to the Federal Government of a flood insurance program with full 

risk-based premiums, combined with means-tested Federal assistance to aid individuals who cannot afford coverage, through an insurance voucher program. The analysis shall compare the costs of 

a program of risk-based rates and means-tested assistance to the 

current system of subsidized flood insurance rates and federally 

funded disaster relief for people without coverage. 

(c) REPORT.—Not later than 270 days after the date of enactment of this Act, the Administrator shall submit to the Committee 

on Banking, Housing, and Urban Affairs of the Senate and the 

Committee on Financial Services of the House of Representatives a 

report that contains the results of the study and analysis under this 

section. 

(d) FUNDING.—Notwithstanding section 1310 of the National 

Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be available to the Administrator from the National Flood Insurance Fund, 

of amounts not otherwise obligated, not more than $750,000 to carry 

out this section. 


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SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION 

OF INDIAN TRIBES AND MEMBERS OF INDIAN TRIBES IN 

THE NATIONAL FLOOD INSURANCE PROGRAM. 

(a) DEFINITION.—In this section, the term ‘‘Indian tribe’’ has the 

meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). 

(b) FINDINGS.—Congress finds that participation by Indian 

tribes in the National Flood Insurance Program is low. Only 45 of 

565 Indian tribes participate in the National Flood Insurance Program. 

(c) STUDY.—The Comptroller General of the United States, in 

coordination and consultation with Indian tribes and members of 

Indian tribes throughout the United States, shall carry out a study 

that examines— 

(1) the factors contributing to the current rates of participation by Indian tribes and members of Indian tribes in the National Flood Insurance Program; and 

(2) methods of encouraging participation by Indian tribes 

and members of Indian tribes in the National Flood Insurance 

Program. 

(d) REPORT.—Not later than 6 months after the date of enactment of this Act, the Comptroller General shall submit to Congress 

a report that— 

(1) contains the results of the study carried out under subsection (c); 

(2) describes the steps that the Administrator should take 

to increase awareness and encourage participation by Indian 

tribes and members of Indian tribes in the National Flood Insurance Program; and 

(3) identifies any legislative changes that would encourage 

participation by Indian tribes and members of Indian tribes in 

the National Flood Insurance Program. 

SEC. 100238. TECHNICAL CORRECTIONS. 

(a) FLOOD DISASTER PROTECTION ACT OF 1973.—The Flood 

Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended— 

(1) by striking ‘‘Director’’ each place that term appears, except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and inserting 

‘‘Administrator’’; and 

(2) in section 201(b) (42 U.S.C. 4105(b)), by striking ‘‘Director’s’’ and inserting ‘‘Administrator’s’’. 

(b) NATIONAL FLOOD INSURANCE ACT OF 1968.—The National 

Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended— 

(1) by striking ‘‘Director’’ each place that term appears and 

inserting ‘‘Administrator’’; 

(2) in section 1363 (42 U.S.C. 4104), by striking ‘‘Director’s’’ 

each place that term appears and inserting ‘‘Administrator’s’’; 

and 

(3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), by striking 

‘‘the Office of Thrift Supervision,’’. 

(c) FEDERAL FLOOD INSURANCE ACT OF 1956.—Section 15(e) of 

the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is 

amended by striking ‘‘Director’’ each place that term appears and 

inserting ‘‘Administrator’’. 


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SEC. 100239. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY 

PURCHASE REQUIREMENT. 

(a) AMENDMENTS.—Section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)) is amended— 

(1) in paragraph (1)— 

(A) by striking the period at the end and inserting ‘‘; 

and’’; 

(B) by striking ‘‘lending institutions not to make’’ and 

inserting ‘‘lending institutions— 

‘‘(A) not to make’’; and 

(C) by adding at the end the following: 

‘‘(B) to accept private flood insurance as satisfaction of 

the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such 

subparagraph.’’; 

(2) in paragraph (2)— 

(A) by striking ‘‘paragraph (1)’’ each place that term 

appears and inserting ‘‘paragraph (1)(A)’’; and 

(B) by inserting after the first sentence the following: 

‘‘Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance 

meets the requirements for coverage under such sentence.’’; 

(3) in paragraph (3), in the matter following subparagraph 

(B), by striking ‘‘paragraph (1).’’ and inserting ‘‘paragraph 

(1)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private 

flood insurance as satisfaction of the flood insurance coverage 

requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claimspaying ability of private insurance companies from which the 

Federal National Mortgage Association or the Federal Home 

Loan Mortgage Corporation will accept private flood insurance.’’; and 

(4) by adding at the end the following: 

‘‘(5) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to supersede or limit the authority of a Federal entity for lending regulation, the Federal Housing Finance 

Agency, a Federal agency lender, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating to the financial solvency, 

strength, or claims-paying ability of private insurance companies from which the entity or agency will accept private flood 

insurance. 

‘‘(6) NOTICE.— 

‘‘(A) IN GENERAL.—Each lender shall disclose to a borrower that is subject to this subsection that— 

‘‘(i) flood insurance is available from private insurance companies that issue standard flood insurance 


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policies on behalf of the national flood insurance program or directly from the national flood insurance program; 

‘‘(ii) flood insurance that provides the same level of 

coverage as a standard flood insurance policy under 

the national flood insurance program may be available 

from a private insurance company that issues policies 

on behalf of the company; and 

‘‘(iii) the borrower is encouraged to compare the 

flood insurance coverage, deductibles, exclusions, conditions and premiums associated with flood insurance 

policies issued on behalf of the national flood insurance program and policies issued on behalf of private 

insurance companies and to direct inquiries regarding 

the availability, cost, and comparisons of flood insurance coverage to an insurance agent. 

‘‘(B) RULE OF CONSTRUCTION.—Nothing in this paragraph shall be construed as affecting or otherwise limiting 

the authority of a Federal entity for lending regulation to 

approve any disclosure made by a regulated lending institution for purposes of complying with subparagraph (A). 

‘‘(7) PRIVATE FLOOD INSURANCE DEFINED.—In this subsection, the term ‘private flood insurance’ means an insurance 

policy that— 

‘‘(A) is issued by an insurance company that is— 

‘‘(i) licensed, admitted, or otherwise approved to 

engage in the business of insurance in the State or jurisdiction in which the insured building is located, by 

the insurance regulator of that State or jurisdiction; or 

‘‘(ii) in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage 

insuring nonresidential commercial property, is recognized, or not disapproved, as a surplus lines insurer by 

the insurance regulator of the State or jurisdiction 

where the property to be insured is located; 

‘‘(B) provides flood insurance coverage which is at least 

as broad as the coverage provided under a standard flood 

insurance policy under the national flood insurance program, including when considering deductibles, exclusions, 

and conditions offered by the insurer; 

‘‘(C) includes— 

‘‘(i) a requirement for the insurer to give 45 days’ 

written notice of cancellation or non-renewal of flood 

insurance coverage to— 

‘‘(I) the insured; and 

‘‘(II) the regulated lending institution or Federal agency lender; 

‘‘(ii) information about the availability of flood insurance coverage under the national flood insurance 

program; 

‘‘(iii) a mortgage interest clause similar to the 

clause contained in a standard flood insurance policy 

under the national flood insurance program; and 


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‘‘(iv) a provision requiring an insured to file suit 

not later than 1 year after date of a written denial of 

all or part of a claim under the policy; and 

‘‘(D) contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the national flood insurance program.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 

1364(a)(3)(C) of the National Flood Insurance Act of 1968 (42 

U.S.C. 4104a(a)(3)(C)) is amended by inserting after ‘‘private insurers’’ the following: ‘‘, as required under section 102(b)(6) of the Flood 

Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(6))’’. 

SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES. 

(a) DEFINITION.—In this section, the term ‘‘covered hazard mitigation land’’ means land that— 

(1) was acquired and deed restricted under section 1366 of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 

during the period beginning on January 1, 1999, and ending 

December 31, 2011; 

(2) is located at— 

(A) 1029 Oak Street, Fargo, North Dakota; 

(B) 27 South Terrace, Fargo, North Dakota; 

(C) 1033 Oak Street, Fargo, North Dakota; 

(D) 308 Schnell Drive, Oxbow, North Dakota; or 

(E) 306 Schnell Drive, Oxbow, North Dakota; and 

(3) is located in a community that— 

(A) is participating in the National Flood Insurance 

Program on the date on which a State, local, or tribal government submits an application requesting to construct a 

permanent flood risk reduction levee under subsection (b); 

and 

(B) certifies to the Administrator and the Chief of Engineers that the community will continue to participate in the 

National Flood Insurance Program. 

(b) AUTHORITY.—Notwithstanding any other prohibition on construction on property acquired with funding from the Federal Emergency Management Agency for conversion to open space purposes, 

the Administrator shall allow the construction of a permanent flood 

risk reduction levee by a State, local, or tribal government on covered hazard mitigation land if— 

(1) the Administrator and the Chief of Engineers make a 

determination that— 

(A) construction of the proposed permanent flood risk 

reduction levee would more effectively mitigate against 

flooding risk than an open floodplain or other flood risk reduction measures; 

(B) the proposed permanent flood risk reduction levee 

complies with Federal, State, and local requirements, including mitigation of adverse impacts and implementation 

of floodplain management requirements, which shall include an evaluation of whether the construction, operation, 

and maintenance of the proposed levee— 

(i) would continue to meet best available industry 

standards and practices; 


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(ii) would be the most cost-effective measure to protect against the assessed flood risk; and 

(iii) minimizes future costs to the Federal Government; 

(C) the State, local, or tribal government seeking to 

construct the proposed permanent flood risk reduction levee 

has provided an adequate maintenance plan that documents the procedures the State, local, or tribal government 

will use to ensure that the stability, height, and overall integrity of the proposed levee and the structure and systems 

of the proposed levee are maintained, including— 

(i) specifying the maintenance activities to be performed; 

(ii) specifying the frequency with which maintenance activities will be performed; 

(iii) specifying the person responsible for performing each maintenance activity (by name or title); 

(iv) detailing the plan for financing the maintenance of the levee; and 

(v) documenting the ability of the State, local, or 

tribal government to finance the maintenance of the 

levee; and 

(2) before the commencement of construction, the State, 

local, or tribal government provides to the Administrator an 

amount— 

(A) equal to the Federal share of all project costs previously provided by the Administrator under the applicable 

program for each deed restricted parcel of the covered hazard mitigation land, which the Administrator shall deposit 

in the National Flood Insurance Fund; and 

(B) that does not include any Federal funds. 

(c) MAINTENANCE CERTIFICATION.— 

(1) IN GENERAL.—A State, local, or tribal government that 

constructs a permanent flood risk reduction levee under subsection (b) shall submit to the Administrator and the Chief of 

Engineers an annual certification indicating whether the State, 

local, or tribal government is in compliance with the maintenance plan provided under subsection (b)(1)(C). 

(2) REVIEW.—The Chief of Engineers shall review each certification submitted under paragraph (1) and determine whether the State, local, or tribal government has complied with the 

maintenance plan. 

SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES AFFECTED BY FLOODING FROM FEDERAL LANDS. 

Section 1306(c)(2) of the National Flood Insurance Act of 1968 

(42 U.S.C. 4013(c)(2)) is amended— 

(1) in subparagraph (A), by striking ‘‘or’’ at the end; 

(2) in subparagraph (B), by striking the period at the end 

and inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(C) the initial purchase of flood insurance coverage for 

private property if— 

‘‘(i) the Administrator determines that the property 

is affected by flooding on Federal land that is a result 

of, or is exacerbated by, post-wildfire conditions, after 


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consultation with an authorized employee of the Federal agency that has jurisdiction of the land on which 

the wildfire that caused the post-wildfire conditions occurred; and 

‘‘(ii) the flood insurance coverage was purchased 

not later than 60 days after the fire containment date, 

as determined by the appropriate Federal employee, relating to the wildfire that caused the post-wildfire conditions described in clause (i).’’. 

SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSURANCE PLAN. 

Chapter I of the National Flood Insurance Act of 1968 (42 

U.S.C. 4011 et seq.) is amended by adding at the end the following: 

‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE 

OF HURRICANE SEASON. 

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, 

including the adequate land use and control measures developed 

pursuant to section 1361 and applicable to non-one- and two-family 

structures located within coastal areas, as identified by the Administrator, the following may be permitted: 

‘‘(1) Nonsupporting breakaway walls in the space below the 

lowest elevated floor of a building, if the space is used solely for 

a swimming pool between November 30 and June 1 of any year, 

in an area designated as Zone V on a flood insurance rate map. 

‘‘(2) Openings in walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an 

area designated as Zone A on a flood insurance rate map. 

‘‘(b) RULE OF CONSTRUCTION.—Nothing in subsection (a) shall 

be construed to alter the terms and conditions of eligibility and insurability of coverage for a building under the standard flood insurance policy under the national flood insurance program.’’. 

SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH 

ACTIVITIES AND COMMUNITY BUILDING CODE ADMINISTRATION GRANTS. 

(a) AMENDMENTS.—Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended— 

(1) by redesignating paragraph (25) as paragraph (26); 

(2) by redesignating the second paragraph designated as 

paragraph (24) (relating to tornado-safe shelters) as paragraph 

(25); 

(3) in paragraph (24) (relating to homeownership among 

persons with low and moderate income), by striking ‘‘and’’ at 

the end; 

(4) in paragraph (25), as so redesignated, by striking ‘‘and’’ 

at the end; 

(5) in paragraph (26), as so redesignated, by striking the 

period at the end and inserting a semicolon; and 

(6) by adding at the end the following new paragraphs: 

‘‘(27) supplementing existing State or local funding for administration of building code enforcement by local building 

code enforcement departments, including for increasing staffing, 

providing staff training, increasing staff competence and professional qualifications, and supporting individual certification or 

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cally dedicated to the administration of the building code enforcement department, except that, to be eligible to use amounts 

as provided in this paragraph— 

‘‘(A) a building code enforcement department shall provide matching, non-Federal funds to be used in conjunction 

with amounts used under this paragraph in an amount— 

‘‘(i) in the case of a building code enforcement department serving an area with a population of more 

than 50,000, equal to not less than 50 percent of the 

total amount of any funds made available under this 

title that are used under this paragraph; 

‘‘(ii) in the case of a building code enforcement department serving an area with a population of between 

20,001 and 50,000, equal to not less than 25 percent of 

the total amount of any funds made available under 

this title that are used under this paragraph; and 

‘‘(iii) in the case of a building code enforcement department serving an area with a population of less 

than 20,000, equal to not less than 12.5 percent of the 

total amount of any funds made available under this 

title that are used under this paragraph, 

except that the Secretary may waive the matching fund requirements under this subparagraph, in whole or in part, 

based upon the level of economic distress of the jurisdiction 

in which is located the local building code enforcement department that is using amounts for purposes under this 

paragraph, and shall waive such matching fund requirements in whole for any recipient jurisdiction that has dedicated all building code permitting fees to the conduct of 

local building code enforcement; and 

‘‘(B) any building code enforcement department using 

funds made available under this title for purposes under 

this paragraph shall empanel a code administration and 

enforcement team consisting of at least 1 full-time building 

code enforcement officer, a city planner, and a health planner or similar officer; and 

‘‘(28) provision of assistance to local governmental agencies 

responsible for floodplain management activities (including 

such agencies of Indians tribes, as such term is defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) in communities that 

participate in the national flood insurance program under the 

National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), 

only for carrying out outreach activities to encourage and facilitate the purchase of flood insurance protection under such Act 

by owners and renters of properties in such communities and to 

promote educational activities that increase awareness of flood 

risk reduction; except that— 

‘‘(A) amounts used as provided under this paragraph 

shall be used only for activities designed to— 

‘‘(i) identify owners and renters of properties in 

communities that participate in the national flood insurance program, including owners of residential and 

commercial properties; 


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‘‘(ii) notify such owners and renters when their 

properties become included in, or when they are excluded from, an area having special flood hazards and 

the effect of such inclusion or exclusion on the applicability of the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such properties; 

‘‘(iii) educate such owners and renters regarding 

the flood risk and reduction of this risk in their community, including the continued flood risks to areas 

that are no longer subject to the flood insurance mandatory purchase requirement; 

‘‘(iv) educate such owners and renters regarding 

the benefits and costs of maintaining or acquiring flood 

insurance, including, where applicable, lower-cost preferred risk policies under this title for such properties 

and the contents of such properties; 

‘‘(v) encourage such owners and renters to maintain or acquire such coverage; 

‘‘(vi) notify such owners of where to obtain information regarding how to obtain such coverage, including a telephone number, mailing address, and Internet 

site of the Administrator of the Federal Emergency 

Management Agency (in this paragraph referred to as 

the ‘Administrator’) where such information is available; and 

‘‘(vii) educate local real estate agents in communities participating in the national flood insurance program regarding the program and the availability of 

coverage under the program for owners and renters of 

properties in such communities, and establish coordination and liaisons with such real estate agents to facilitate purchase of coverage under the National Flood 

Insurance Act of 1968 and increase awareness of flood 

risk reduction; 

‘‘(B) in any fiscal year, a local governmental agency 

may not use an amount under this paragraph that exceeds 

3 times the amount that the agency certifies, as the Secretary, in consultation with the Administrator, shall require, that the agency will contribute from non-Federal 

funds to be used with such amounts used under this paragraph only for carrying out activities described in subparagraph (A); and for purposes of this subparagraph, the term 

‘non-Federal funds’ includes State or local government 

agency amounts, in-kind contributions, any salary paid to 

staff to carry out the eligible activities of the local governmental agency involved, the value of the time and services 

contributed by volunteers to carry out such services (at a 

rate determined by the Secretary), and the value of any donated material or building and the value of any lease on 

a building; 

‘‘(C) a local governmental agency that uses amounts as 

provided under this paragraph may coordinate or contract 

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ities, specialties, or experience with respect to certain populations or constituencies, including elderly or disabled families or persons, to carry out activities described in subparagraph (A) with respect to such populations or constituencies; and 

‘‘(D) each local government agency that uses amounts 

as provided under this paragraph shall submit a report to 

the Secretary and the Administrator, not later than 12 

months after such amounts are first received, which shall 

include such information as the Secretary and the Administrator jointly consider appropriate to describe the activities conducted using such amounts and the effect of such 

activities on the retention or acquisition of flood insurance 

coverage.’’. 

(b) SUNSET.—Effective on the date that is 2 years after the date 

of enactment of this Act, section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended— 

(1) in paragraph (25), as so redesignated by subsection (a) 

of this subsection, by adding ‘‘and’’ at the end; 

(2) in paragraph (26), as so redesignated by subsection (a) 

of this subsection, by striking the semicolon at the end and inserting a period; and 

(3) by striking paragraphs (27) and (28), as added by subsection (a) of this subsection. 

SEC. 100244. TERMINATION OF FORCE-PLACED INSURANCE. 

(a) IN GENERAL.—Section 102(e) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended— 

(1) in paragraph (2), by striking ‘‘purchasing the insurance’’ 

and inserting ‘‘purchasing the insurance, including premiums 

or fees incurred for coverage beginning on the date on which 

flood insurance coverage lapsed or did not provide a sufficient 

coverage amount’’; 

(2) by redesignating paragraphs (3) and (4) as paragraphs 

(5) and (6), respectively; and 

(3) by inserting after paragraph (2) the following new paragraphs: 

‘‘(3) TERMINATION OF FORCE-PLACED INSURANCE.—Within 

30 days of receipt by the lender or servicer of a confirmation of 

a borrower’s existing flood insurance coverage, the lender or 

servicer shall— 

‘‘(A) terminate any insurance purchased by the lender 

or servicer under paragraph (2); and 

‘‘(B) refund to the borrower all premiums paid by the 

borrower for any insurance purchased by the lender or 

servicer under paragraph (2) during any period during 

which the borrower’s flood insurance coverage and the insurance coverage purchased by the lender or servicer were 

each in effect, and any related fees charged to the borrower 

with respect to the insurance purchased by the lender or 

servicer during such period. 

‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For purposes of 

confirming a borrower’s existing flood insurance coverage, a 

lender or servicer for a loan shall accept from the borrower an 

insurance policy declarations page that includes the existing 


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flood insurance policy number and the identity of, and contact 

information for, the insurance company or agent.’’. 

SEC. 100245. FEMA AUTHORITY ON TRANSFER OF POLICIES. 

Section 1345 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4081) is amended by adding at the end the following new 

subsection: 

‘‘(d) FEMA AUTHORITY ON TRANSFER OF POLICIES.—Notwithstanding any other provision of this title, the Administrator may, at 

the discretion of the Administrator, refuse to accept the transfer of 

the administration of policies for coverage under the flood insurance 

program under this title that are written and administered by any 

insurance company or other insurer, or any insurance agent or 

broker.’’. 

SEC. 100246. REIMBURSEMENT OF CERTAIN EXPENSES. 

Section 1363 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4104) is amended by striking subsection (f) and inserting the 

following: 

‘‘(f) REIMBURSEMENT OF CERTAIN EXPENSES.—When, incident 

to any appeal under subsection (b) or (c) of this section, the owner 

or lessee of real property or the community, as the case may be, incurs expense in connection with the services of surveyors, engineers, 

or similar services, but not including legal services, in the effecting 

of an appeal based on a scientific or technical error on the part of 

the Federal Emergency Management Agency, which is successful in 

whole or part, the Administrator shall reimburse such individual or 

community to an extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal and applying 

such ratio to the reasonable value of all such services, but no reimbursement shall be made by the Administrator in respect to any fee 

or expense payment, the payment of which was agreed to be contingent upon the result of the appeal. The amounts available for implementing this subsection shall not exceed $250,000. The Administrator shall promulgate regulations to carry out this subsection.’’. 

SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE. 

(a) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Director of the Federal Insurance Office shall 

conduct a study and submit to the Committee on Banking, Housing, 

and Urban Affairs of the Senate and the Committee on Financial 

Services of the House of Representatives a report providing an assessment of the current state of the market for natural catastrophe 

insurance in the United States. 

(b) FACTORS.—The study and report required under subsection 

(a) shall assess— 

(1) the current condition of, as well as the outlook for, the 

availability and affordability of insurance for natural catastrophe perils in all regions of the United States; 

(2) the current ability of States, communities, and individuals to mitigate their natural catastrophe risks, including the 

affordability and feasibility of such mitigation activities; 

(3) the current state of catastrophic insurance and reinsurance markets and the current approaches in providing insurance protection to different sectors of the population of the 

United States; 


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(4) the current financial condition of State residual markets 

and catastrophe funds in high-risk regions, including the likelihood of insolvency following a natural catastrophe, the concentration of risks within such funds, the reliance on post-event 

assessments and State funding, and the adequacy of rates; and 

(5) the current role of the Federal Government and State 

and local governments in providing incentives for feasible risk 

mitigation efforts and the cost of providing post-natural catastrophe aid in the absence of insurance. 

(c) ADDITIONAL FACTORS.—The study and report required under 

subsection (a) shall also contain an assessment of current approaches to insuring natural catastrophe risks in the United States 

and such other information as the Director of the Federal Insurance 

Office determines necessary or appropriate. 

(d) CONSULTATION.—In carrying out the study and report under 

subsection (a), the Director of the Federal Insurance Office shall 

consult with the National Academy of Sciences, State insurance regulators, consumer organizations, representatives of the insurance 

and reinsurance industry, policyholders, and other organizations 

and experts, as appropriate. 

SEC. 100248. FLOOD PROTECTION IMPROVEMENTS CONSTRUCTED ON 

CERTAIN PROPERTIES. 

(a) DEFINITION.—In this section, the term ‘‘covered hazard mitigation land’’ means land that— 

(1) was acquired and deed restricted under section 1366 of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 

during the period beginning on March 1, 2008, and ending on 

December 31, 2008; 

(2) is located at— 

(A) 809 East Main Cross Street, Findlay, Ohio, 45840; 

(B) 801 East Main Cross Street, Findlay, Ohio, 45840; 

(C) 725 East Main Cross Street, Findlay, Ohio, 45840; 

or 

(D) 631 East Main Cross Street, Findlay, Ohio, 45840; 

and 

(3) is located in a community that— 

(A) is participating in the National Flood Insurance 

Program on the date on which a State, local, or tribal government submits an application requesting to construct a 

flood protection improvement under subsection (b); and 

(B) certifies to the Administrator and the Chief of Engineers that the community will continue to participate in the 

National Flood Insurance Program. 

(b) AUTHORITY.—Notwithstanding any other prohibition on construction on property acquired with funding from the Federal Emergency Management Agency for conversion to open space purposes, 

the Administrator shall allow the construction of a flood protection 

improvement by a State, local, or tribal government on covered hazard mitigation land if— 

(1) the Administrator and the Chief of Engineers make a 

determination that— 

(A) construction of the proposed flood protection improvement would more effectively mitigate against flooding 

risk than an open floodplain or other flood risk reduction 

measures; 


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(B) the proposed flood protection improvement complies 

with Federal, State, and local requirements, including mitigation of adverse impacts and implementation of floodplain 

management requirements, which shall include an evaluation of whether the construction, operation, and maintenance of the proposed flood protection improvement— 

(i) would continue to meet best available industry 

standards and practices; 

(ii) would be the most cost-effective measure to protect against the assessed flood risk; and 

(iii) minimizes future costs to the Federal Government; 

(C) the State, local, or tribal government seeking to 

construct the flood protection improvement has provided an 

adequate maintenance plan that documents the procedures 

the State, local, or tribal government will use to ensure that 

the stability, height, and overall integrity of the proposed 

flood protection improvement and the structure and systems 

of the proposed flood protection improvement are maintained, including— 

(i) specifying the maintenance activities to be performed; 

(ii) specifying the frequency with which maintenance activities will be performed; 

(iii) specifying the person responsible for performing each maintenance activity (by name or title); 

(iv) detailing the plan for financing the maintenance of the flood protection improvement; and 

(v) documenting the ability of the State, local, or 

tribal government to finance the maintenance of the 

flood protection improvement; and 

(2) before the commencement of construction, the State, 

local, or tribal government provides to the Administrator an 

amount— 

(A) equal to the Federal share of all project costs previously provided by the Administrator under the applicable 

program for each deed restricted parcel of the covered hazard mitigation land, which the Administrator shall deposit 

in the National Flood Insurance Fund; and 

(B) that does not include any Federal funds. 

(c) MAINTENANCE CERTIFICATION.— 

(1) IN GENERAL.—A State, local, or tribal government that 

constructs a flood protection improvement under subsection (b) 

shall submit to the Administrator and the Chief of Engineers 

an annual certification indicating whether the State, local, or 

tribal government is in compliance with the maintenance plan 

provided under subsection (b)(1)(C). 

(2) REVIEW.—The Chief of Engineers shall review each certification submitted under paragraph (1) and determine whether the State, local, or tribal government has complied with the 

maintenance plan. 

SEC. 100249. NO CAUSE OF ACTION. 

No cause of action shall exist and no claim may be brought 

against the United States for violation of any notification requireVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00581 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ment imposed upon the United States by this subtitle or any amendment made by this subtitle. 

Subtitle B—Alternative Loss Allocation 

SEC. 100251. SHORT TITLE. 

This subtitle may be cited as the ‘‘Consumer Option for an Alternative System to Allocate Losses Act of 2012’’ or the ‘‘COASTAL 

Act of 2012’’. 

SEC. 100252. ASSESSING AND MODELING NAMED STORMS OVER COASTAL STATES. 

Subtitle C of title XII of the Omnibus Public Land Management 

Act of 2009 (33 U.S.C. 3601 et seq.) (also known as the ‘‘Integrated 

Coastal and Ocean Observation System Act of 2009’’) is amended by 

adding at the end the following: 

‘‘SEC. 12312. ASSESSING AND MODELING NAMED STORMS OVER COASTAL STATES. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) COASTAL FORMULA.—The term ‘COASTAL Formula’ 

has the meaning given the term in section 1337(a) of the National Flood Insurance Act of 1968. 

‘‘(2) COASTAL STATE.—The term ‘coastal State’ has the 

meaning given the term ‘coastal state’ in section 304 of the 

Coastal Zone Management Act of 1972 (16 U.S.C. 1453). 

‘‘(3) COASTAL WATERS.—The term ‘coastal waters’ has the 

meaning given the term in such section. 

‘‘(4) COVERED DATA.—The term ‘covered data’ means, with 

respect to a named storm identified by the Administrator under 

subsection (b)(2)(A), empirical data that are— 

‘‘(A) collected before, during, or after such storm; and 

‘‘(B) necessary to determine magnitude and timing of 

wind speeds, rainfall, the barometric pressure, river flows, 

the extent, height, and timing of storm surge, topographic 

and bathymetric data, and other measures required to accurately model and assess damage from such storm. 

‘‘(5) INDETERMINATE LOSS.—The term ‘indeterminate loss’ 

has the meaning given the term in section 1337(a) of the National Flood Insurance Act of 1968. 

‘‘(6) NAMED STORM.—The term ‘named storm’ means any 

organized weather system with a defined surface circulation 

and maximum winds of at least 39 miles per hour which the 

National Hurricane Center of the United States National 

Weather Service names as a tropical storm or a hurricane. 

‘‘(7) NAMED STORM EVENT MODEL.—The term ‘Named 

Storm Event Model’ means the official meteorological and 

oceanographic computerized model, developed by the Administrator under subsection (b)(1)(A), which utilizes covered data to 

replicate the magnitude, timing, and spatial variations of 

winds, rainfall, and storm surges associated with named 

storms that threaten any portion of a coastal State. 

‘‘(8) PARTICIPANT.—The term ‘participant’ means a Federal, 

State, or private entity that chooses to cooperate with the Administrator in carrying out the provisions of this section by collecting, contributing, and maintaining covered data. 


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‘‘(9) POST-STORM ASSESSMENT.—The term ‘post-storm assessment’ means a scientific assessment produced and certified 

by the Administrator to determine the magnitude, timing, and 

spatial variations of winds, rainfall, and storm surges associated with a specific named storm to be used in the COASTAL 

Formula. 

‘‘(10) STATE.—The term ‘State’ means a State of the United 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, and any other territory or possession of the United States. 

‘‘(b) NAMED STORM EVENT MODEL AND POST-STORM ASSESS- MENT.— ‘‘(1) ESTABLISHMENT OF NAMED STORM EVENT MODEL.— 

‘‘(A) IN GENERAL.—Not later than 540 days after the 

date of the enactment of the Consumer Option for an Alternative System to Allocate Losses Act of 2012, the Administrator shall develop by regulation the Named Storm Event 

Model. 

‘‘(B) ACCURACY.—The Named Storm Event Model shall 

be designed to generate post-storm assessments, as provided 

in paragraph (2), that have a degree of accuracy of not less 

than 90 percent for every indeterminate loss for which a 

post-storm assessment is utilized. 

‘‘(2) POST-STORM ASSESSMENT.— ‘‘(A) IDENTIFICATION OF NAMED STORMS THREATENING

COASTAL STATES.—After the establishment of the COASTAL 

Formula, the Administrator shall, in consultation with the 

Secretary of Homeland Security, identify named storms 

that may reasonably constitute a threat to any portion of a 

coastal State. 

‘‘(B) POST-STORM ASSESSMENT REQUIRED.—Upon identification of a named storm under subparagraph (A), the 

Administrator shall develop a post-storm assessment for 

such named storm using the Named Storm Event Model 

and covered data collected for such named storm pursuant 

to the protocol established under subsection (c)(1). 

‘‘(C) SUBMITTAL OF POST-STORM ASSESSMENT.—Not 

later than 90 days after an identification of a named storm 

is made under subparagraph (A), the Administrator shall 

submit to the Secretary of Homeland Security the poststorm assessment developed for such storm under subparagraph (B). 

‘‘(3) ACCURACY.—The Administrator shall ensure, to the 

greatest extent practicable, that each post-storm assessment developed under paragraph (2) has a degree of accuracy of not 

less than 90 percent. 

‘‘(4) CERTIFICATION.—For each post-storm assessment carried out under paragraph (2), the Administrator shall— 

‘‘(A) certify the degree of accuracy for such assessment, 

including specific reference to any segments or geographic 

areas for which the assessment is less than 90 percent accurate; and 

‘‘(B) report such certification to the Secretary of Homeland Security for the purposes of use with indeterminate 

loss claims under section 1337 of the National Flood Insurance Act of 1968. 


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‘‘(5) FINALITY OF DETERMINATIONS.—A certification of the 

degree of accuracy of a post-storm assessment under this subsection by the Administrator shall be final and shall not be subject to judicial review. 

‘‘(6) AVAILABILITY.—The Administrator shall make available to the public the Named Storm Event Model and any poststorm assessment developed under this subsection. 

‘‘(c) ESTABLISHMENT OF A PROTOCOL FOR POST-STORM ASSESS- MENT.— ‘‘(1) IN GENERAL.—Not later than 540 days after the date 

of the enactment of the Consumer Option for an Alternative 

System to Allocate Losses Act of 2012, the Administrator shall 

establish a protocol, based on the plan submitted under subsection (d)(3), to collect and assemble all covered data required 

by the Administrator to produce post-storm assessments required by subsection (b), including assembling data collected by 

participants and stored in the database established under subsection (f) and from such other sources as the Administrator 

considers appropriate. 

‘‘(2) ACQUISITION OF SENSORS AND STRUCTURES.—If the Administrator is unable to use a public or private asset to obtain 

covered data as part of the protocol established under paragraph (1), the Administrator may acquire such sensors and 

structures for the placement of sensors as may be necessary to 

obtain such data. 

‘‘(3) USE OF FEDERAL ASSETS.—If the protocol requires 

placement of a sensor to develop assessments pursuant to subsection (b), the Administrator shall, to the extent practicable, 

use Federal assets for the placement of such sensors. 

‘‘(4) USE OF ACQUIRED STRUCTURES.— 

‘‘(A) IN GENERAL.—If the Administrator acquires a 

structure for the placement of a sensor for purposes of such 

protocol, the Administrator shall to the extent practical permit other public and private entities to place sensors on 

such structure to collect— 

‘‘(i) meteorological data; 

‘‘(ii) national security-related data; 

‘‘(iii) navigation-related data; 

‘‘(iv) hydrographic data; or 

‘‘(v) such other data as the Administrator considers 

appropriate. 

‘‘(B) RECEIPT OF CONSIDERATION.—The Administrator 

may receive consideration for the placement of a sensor on 

a structure under subparagraph (A). 

‘‘(C) IN-KIND CONSIDERATION.—Consideration received 

under subparagraph (B) may be received in-kind. 

‘‘(D) USE OF CONSIDERATION.—To the extent practicable, consideration received under subparagraph (B) 

shall be used for the maintenance of sensors used to collect 

covered data. 

‘‘(5) COORDINATED DEPLOYMENTS AND DATA COLLECTION

PRACTICES.—The Administrator shall, in consultation with the 

Office of the Federal Coordinator for Meteorology, coordinate 

the deployment of sensors as part of the protocol established 

under paragraph (1) and related data collection carried out by 


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Federal, State, academic, and private entities who choose to cooperate with the Administrator in carrying out this subsection. 

‘‘(6) PRIORITY ACQUISITION AND DEPLOYMENT.—The Administrator shall give priority in the acquisition for and deployment 

of sensors under the protocol required by paragraph (1) to areas 

of coastal States that have the highest risk of being harmed by 

named storms. 

‘‘(d) ASSESSMENT OF SYSTEMS AND EFFORTS TO COLLECT COVERED DATA.— 

‘‘(1) IDENTIFICATION OF SYSTEMS AND EFFORTS TO COLLECT

COVERED DATA.—Not later than 180 days after the date of the 

enactment of the Consumer Option for an Alternative System to 

Allocate Losses Act of 2012, the Administrator shall, in consultation with the Office of the Federal Coordinator for Meteorology— 

‘‘(A) carry out a survey to identify all Federal and State 

efforts and systems that are capable of collecting covered 

data; and 

‘‘(B) consult with private and academic sector entities 

to identify domestic private and academic systems that are 

capable of collecting covered data. 

‘‘(2) IDENTIFICATION OF GAPS.—The Administrator shall, in 

consultation with the Office of the Federal Coordinator for Meteorology and individuals and entities consulted under subsection (e)(3), assess the systems identified under paragraph (1) 

and identify which systems meet the needs of the National Oceanic and Atmospheric Administration for the collection of covered data, including with respect to the accuracy requirement 

for post-storm assessment under subsection (b)(3). 

‘‘(3) PLAN.—Not later than 270 days after the date of the 

enactment of the Consumer Option for an Alternative System to 

Allocate Losses Act of 2012, the Administrator shall, in consultation with the Office of the Federal Coordinator for Meteorology, submit to Congress a plan for the collection of covered 

data necessary to develop the Named Storm Event Model and 

post-storm assessment required by subsection (b) that addresses 

any gaps identified in paragraph (2). 

‘‘(e) COORDINATION OF COVERED DATA COLLECTION AND MAINTENANCE BY PARTICIPANTS.— 

‘‘(1) IN GENERAL.—The Administrator shall, in consultation 

with the Office of the Federal Coordinator for Meteorology, coordinate the collection and maintenance of covered data by participants under this section— 

‘‘(A) to streamline the process of collecting covered data 

in accordance with the protocol established under subsection (c)(1); and 

‘‘(B) to maintain transparency of such process and the 

database established under subsection (f). 

‘‘(2) SHARING INFORMATION.—The Administrator shall establish a process for sharing among participants information 

relevant to collecting and using covered data for— 

‘‘(A) academic research; 

‘‘(B) private sector use; 

‘‘(C) public outreach; and 


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‘‘(D) such other purposes as the Administrator considers appropriate. 

‘‘(3) CONSULTATION.—In carrying out paragraphs (1) and 

(2), the Administrator shall consult with the following: 

‘‘(A) The Commanding General of the Corps of Engineers. 

‘‘(B) The Administrator of the Federal Emergency Management Agency. 

‘‘(C) The Commandant of the Coast Guard. 

‘‘(D) The Director of the United States Geological Survey. 

‘‘(E) The Office of the Federal Coordinator for Meteorology. 

‘‘(F) The Director of the National Science Foundation. 

‘‘(G) The Administrator of the National Aeronautics 

and Space Administration. 

‘‘(H) Such public, private, and academic sector entities 

as the Administrator considers appropriate for purposes of 

carrying out the provisions of this section. 

‘‘(f) ESTABLISHMENT OF COASTAL WIND AND WATER EVENT

DATABASE.— 

‘‘(1) IN GENERAL.—Not later than 1 year after the date of 

the enactment of the Consumer Option for an Alternative System to Allocate Losses Act of 2012, the Administrator shall establish a database for the collection and compilation of covered 

data— 

‘‘(A) to support the protocol established under subsection (c)(1); and 

‘‘(B) for the purposes listed in subsection (e)(2). 

‘‘(2) DESIGNATION.—The database established under paragraph (1) shall be known as the ‘Coastal Wind and Water Event 

Database’. 

‘‘(g) COMPTROLLER GENERAL STUDY.—Not later than 1 year 

after the date of the enactment of the Consumer Option for an Alternative System to Allocate Losses Act of 2012, the Comptroller General of the United States shall— 

‘‘(1) complete an audit of Federal efforts to collect covered 

data for purposes of the Consumer Option for an Alternative 

System to Allocate Losses Act of 2012, which audit shall— 

‘‘(A) examine duplicated Federal efforts to collect covered data; and 

‘‘(B) determine the cost effectiveness of such efforts; and 

‘‘(2) submit to the Committee on Banking, Housing, and 

Urban Affairs and the Commerce, Science, and Transportation 

of the Senate and the Committee on Financial Services and the 

Committee on Science, Space, and Technology of the House of 

Representatives a report on the findings of the Comptroller General with respect to the audit completed under paragraph (1).’’. 

SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE CLAIMS. 

Part A of chapter II of the National Flood Insurance Act of 

1968 (42 U.S.C. 4051 et seq.) is amended by adding at the end the 

following: 


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‘‘SEC. 1337. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE CLAIMS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the 

Administrator of the Federal Emergency Management Agency. 

‘‘(2) COASTAL FORMULA.—The term ‘COASTAL Formula’ 

means the formula established under subsection (b). 

‘‘(3) COASTAL STATE.—The term ‘coastal State’ has the 

meaning given the term ‘coastal state’ in section 304 of the 

Coastal Zone Management Act of 1972 (16 U.S.C. 1453). 

‘‘(4) INDETERMINATE LOSS.— 

‘‘(A) IN GENERAL.—The term ‘indeterminate loss’ 

means, as determined by an insurance claims adjuster certified under the national flood insurance program and in 

consultation with an engineer as appropriate, a loss resulting from physical damage to, or loss of, property located in 

any coastal State arising from the combined perils of flood 

and wind associated with a named storm. 

‘‘(B) REQUIREMENTS.—An insurance claims adjuster 

certified under the national flood insurance program shall 

only determine that a loss is an indeterminate loss if the 

claims adjuster determines that— 

‘‘(i) no material remnant of physical buildings or 

man-made structures remain except building foundations for the specific property for which the claim is 

made; and 

‘‘(ii) there is insufficient or no tangible evidence 

created, yielded, or otherwise left behind of the specific 

property for which the claim is made as a result of the 

named storm. 

‘‘(5) NAMED STORM.—The term ‘named storm’ means any 

organized weather system with a defined surface circulation 

and maximum winds of not less than 39 miles per hour which 

the National Hurricane Center of the United States National 

Weather Service names as a tropical storm or a hurricane. 

‘‘(6) POST-STORM ASSESSMENT.—The term ‘post-storm assessment’ means the post-storm assessment developed under section 12312(b) of the Omnibus Public Land Management Act of 

2009. 

‘‘(7) STATE.—The term ‘State’ means a State of the United 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, and any other territory or possession of the United States. 

‘‘(8) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Homeland Security. 

‘‘(9) STANDARD INSURANCE POLICY.—The term ‘standard insurance policy’ means any insurance policy issued under the 

national flood insurance program that covers loss or damage to 

property resulting from water peril. 

‘‘(10) PROPERTY.—The term ‘property’ means real or personal property that is insured under a standard insurance policy for loss or damage to structure or contents. 

‘‘(11) UNDER SECRETARY.—The term ‘Under Secretary’ 

means the Under Secretary of Commerce for Oceans and Atmosphere, in the Under Secretary’s capacity as Administrator of the 

National Oceanic and Atmospheric Administration. 


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‘‘(b) ESTABLISHMENT OF FLOOD LOSS ALLOCATION FORMULA

FOR INDETERMINATE CLAIMS.— ‘‘(1) IN GENERAL.—Not later than 180 days after the date 

on which the protocol is established under section 12312(c)(1) of 

the Omnibus Public Land Management Act of 2009, the Secretary, acting through the Administrator and in consultation 

with the Under Secretary, shall establish by rule a standard 

formula to determine and allocate wind losses and flood losses 

for claims involving indeterminate losses. 

‘‘(2) CONTENTS.—The standard formula established under 

paragraph (1) shall— 

‘‘(A) incorporate data available from the Coastal Wind 

and Water Event Database established under section 

12312(f) of the Omnibus Public Land Management Act of 

2009; 

‘‘(B) use relevant data provided on the National Flood 

Insurance Program Elevation Certificate for each indeterminate loss for which the formula is used; 

‘‘(C) consider any sufficient and credible evidence, approved by the Administrator, of the pre-event condition of 

a specific property, including the findings of any policyholder or insurance claims adjuster in connection with the 

indeterminate loss to that specific property; 

‘‘(D) include other measures, as the Administrator considers appropriate, required to determine and allocate by 

mathematical formula the property damage caused by flood 

or storm surge associated with a named storm; and 

‘‘(E) subject to paragraph (3), for each indeterminate 

loss, use the post-storm assessment to allocate water damage (flood or storm surge) associated with a named storm. 

‘‘(3) DEGREE OF ACCURACY REQUIRED.—The standard formula established under paragraph (1) shall specify that the Administrator may only use the post-storm assessment for purposes of the formula if the Under Secretary certifies that the 

post-storm assessment has a degree of accuracy of not less than 

90 percent in connection with the specific indeterminate loss for 

which the assessment and formula are used. 

‘‘(c) AUTHORIZED USE OF POST-STORM ASSESSMENT AND

COASTAL FORMULA.— ‘‘(1) IN GENERAL.—Subject to paragraph (3), the Administrator may use the post-storm assessment and the COASTAL 

Formula to— 

‘‘(A) review flood loss payments for indeterminate 

losses, including as part of the quality assurance reinspection program of the Federal Emergency Management Agency for claims under the national flood insurance program 

and any other process approved by the Administrator to review and validate payments under the national flood insurance program for indeterminate losses following a named 

storm; and 

‘‘(B) assist the national flood insurance program to— 

‘‘(i) properly cover qualified flood loss for claims 

for indeterminate losses; and 

‘‘(ii) avoid paying for any loss or damage to property caused by any peril (including wind), other than 


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flood or storm surge, that is not covered under a standard policy under the national flood insurance program. 

‘‘(2) FEDERAL DISASTER DECLARATION.—Subject to paragraph (3), in order to expedite claims and reduce costs to the 

national flood insurance program, following any major disaster 

declared by the President under section 401 of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5170) relating to a named storm in a coastal State, the 

Administrator may use the COASTAL Formula to determine 

and pay for any flood loss covered under a standard insurance 

policy under the national flood insurance program, if the loss 

is an indeterminate loss. 

‘‘(3) NATIONAL ACADEMY OF SCIENCES EVALUATION.— 

‘‘(A) EVALUATION REQUIRED.— 

‘‘(i) EVALUATION.—Upon the issuance of the rule 

establishing the COASTAL Formula, and each time 

the Administrator modifies the COASTAL Formula, 

the National Academy of Sciences shall— 

‘‘(I) evaluate the expected financial impact on 

the national flood insurance program of the use of 

the COASTAL Formula as so established or modified; and 

‘‘(II) evaluate the validity of the scientific assumptions upon which the formula is based and 

determine whether the COASTAL formula can 

achieve a degree of accuracy of not less than 90 

percent in allocating flood losses for indeterminate 

losses. 

‘‘(ii) REPORT.—The National Academy of Sciences 

shall submit a report containing the results of each 

evaluation under clause (i) to the Administrator, the 

Committee on Banking, Housing, and Urban Affairs 

and the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Financial Services and the Committee on Science, Space, and 

Technology of the House of Representatives. 

‘‘(B) EFFECTIVE DATE AND APPLICABILITY.— ‘‘(i) EFFECTIVE DATE.—Paragraphs (1) and (2) of 

this subsection shall not take effect unless the report 

under subparagraph (A) relating to the establishment 

of the COASTAL Formula concludes that the use of the 

COASTAL Formula for purposes of paragraph (1) and 

(2) would not have an adverse financial impact on the 

national flood insurance program and that the 

COASTAL Formula is based on valid scientific assumptions that would allow a degree of accuracy of not 

less than 90 percent to be achieved in allocating flood 

losses for indeterminate losses. 

‘‘(ii) EFFECT OF MODIFICATIONS.—Unless the report 

under subparagraph (A) relating to a modification of 

the COASTAL Formula concludes that the use of the 

COASTAL Formula, as so modified, for purposes of 

paragraphs (1) and (2) would not have an adverse financial impact on the national flood insurance program and that the COASTAL Formula is based on 


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valid scientific assumptions that would allow a degree 

of accuracy of not less than 90 percent to be achieved 

in allocating flood losses for indeterminate losses the 

Administrator may not use the COASTAL Formula, as 

so modified, for purposes of paragraphs (1) and (2). 

‘‘(C) FUNDING.—Notwithstanding section 1310 of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4017), 

there shall be available to the Administrator from the National Flood Insurance Fund, of amounts not otherwise obligated, not more than $750,000 to carry out this paragraph. 

‘‘(d) DISCLOSURE OF COASTAL FORMULA.—Not later than 30 

days after the date on which a post-storm assessment is submitted 

to the Secretary under section 12312(b)(2)(C) of the Omnibus Public 

Land Management Act of 2009, for each indeterminate loss for 

which the COASTAL Formula is used pursuant to subsection (c)(2), 

the Administrator shall disclose to the policyholder that makes a 

claim relating to the indeterminate loss— 

‘‘(1) that the Administrator used the COASTAL Formula 

with respect to the indeterminate loss; and 

‘‘(2) a summary of the results of the use of the COASTAL 

Formula. 

‘‘(e) CONSULTATION.—In carrying out subsections (b) and (c), the 

Secretary shall consult with— 

‘‘(1) the Under Secretary for Oceans and Atmosphere; 

‘‘(2) the Director of the National Institute of Standards and 

Technology; 

‘‘(3) the Chief of Engineers of the Corps of Engineers; 

‘‘(4) the Director of the United States Geological Survey; 

‘‘(5) the Office of the Federal Coordinator for Meteorology; 

‘‘(6) State insurance regulators of coastal States; and 

‘‘(7) such public, private, and academic sector entities as 

the Secretary considers appropriate for purposes of carrying out 

such subsections. 

‘‘(f) RECORDKEEPING.—Each consideration and measure the Administrator determines necessary to carry out subsection (b) may be 

required, with advanced approval of the Administrator, to be provided for on the National Flood Insurance Program Elevation Certificate, or maintained otherwise on record if approved by the Administrator, for any property that qualifies for the COASTAL Formula under subsection (c). 

‘‘(g) CIVIL PENALTY.— 

‘‘(1) IN GENERAL.—If an insurance claims adjuster knowingly and willfully makes a false or inaccurate determination 

relating to an indeterminate loss, the Administrator may, after 

notice and opportunity for hearing, impose on the insurance 

claims adjuster a civil penalty of not more than $1,000. 

‘‘(2) DEPOSIT.—Notwithstanding section 3302 of title 31, 

United States Code, or any other law relating to the crediting 

of money, the Administrator shall deposit in the National Flood 

Insurance Fund any amounts received under this subsection, 

which shall remain available until expended and be available 

to the Administrator for purposes authorized for the National 

Flood Insurance Fund without further appropriation. 


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‘‘(h) RULE OF CONSTRUCTION.—Nothing in this subsection shall 

be construed to require the Administrator to make any payment 

under the national flood insurance program, or an insurance company to make any payment, for an indeterminate loss based upon 

post-storm assessment or the COASTAL Formula. 

‘‘(i) APPLICABILITY.—Subsection (c) shall apply with respect to 

an indeterminate loss associated with a named storm that occurs 

after the date on which the Administrator issues the rule establishing the COASTAL Formula under subsection (b). 

‘‘(j) RULE OF CONSTRUCTION.—Nothing in this subsection shall 

be construed to negate, set aside, or void any policy limit, including 

any loss limitation, set forth in a standard insurance policy.’’. 

Subtitle C—HEARTH Act Amendment 

SEC. 100261. HEARTH ACT TECHNICAL CORRECTIONS. 

For purposes of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.)— 

(1) the term ‘‘local government’’ includes an instrumentality 

of a unit of general purpose local government other than a public housing agency that is established pursuant to legislation 

and designated by the chief executive to act on behalf of the 

local government with regard to activities funded under such 

title IV and includes a combination of general purpose local 

governments, such as an association of governments, that is recognized by the Secretary of Housing and Urban Development; 

(2) the term ‘‘State’’ includes any instrumentality of any of 

the several States designated by the Governor to act on behalf 

of the State and does not include the District of Columbia; 

(3) for purposes of environmental review, the Secretary of 

Housing and Urban Development shall continue to permit assistance and projects to be treated as assistance for special 

projects that are subject to section 305(c) of the Multifamily 

Housing Property Disposition Reform Act of 1994 (42 U.S.C. 

3547), and subject to the regulations issued by the Secretary of 

Housing and Urban Development to implement such section; 

and 

(4) a metropolitan city and an urban county that each receive an allocation under such title IV and are located within 

a geographic area that is covered by a single continuum of care 

may jointly request the Secretary of Housing and Urban Development to permit the urban county or the metropolitan city, as 

agreed to by such county and city, to receive and administer 

their combined allocations under a single grant. 

TITLE III—STUDENT LOAN INTEREST 

RATE EXTENSION 

SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE EXTENSION. 

Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 

U.S.C. 1087e(b)(7)(D)) is amended— 


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(1) in the matter preceding clause (i), by striking ‘‘and before July 1, 2012,’’ and inserting ‘‘and before July 1, 2013,’’; 

and 

(2) in clause (v), by striking ‘‘and before July 1, 2012,’’ and 

inserting ‘‘and before July 1, 2013,’’. 

SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL 

DIRECT STAFFORD LOANS FOR NEW BORROWERS ON OR 

AFTER JULY 1, 2013. 

(a) IN GENERAL.—Section 455 of the Higher Education Act of 

1965 (20 U.S.C. 1087e) is amended by adding at the end the following: 

‘‘(q) ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL DIRECT STAFFORD LOANS FOR NEW BORROWERS ON OR AFTER JULY 1, 

2013.— 

‘‘(1) IN GENERAL.—Notwithstanding subsection (a) or any 

other provision of this title, any borrower who was a new borrower on or after July 1, 2013, shall not be eligible for a Federal Direct Stafford Loan if the period of time for which the 

borrower has received Federal Direct Stafford Loans, in the aggregate, exceeds the period of enrollment described in paragraph (3). Such borrower may still receive any Federal Direct 

Unsubsidized Stafford Loan for which such borrower is otherwise eligible. 

‘‘(2) ACCRUAL OF INTEREST ON FEDERAL DIRECT STAFFORD

LOANS.—Notwithstanding subsection (f)(1)(A) or any other provision of this title and beginning on the date upon which a borrower who is enrolled in a program of education or training (including a course of study or program described in paragraph 

(3)(B) or (4)(B) of section 484(b)) for which borrowers are otherwise eligible to receive Federal Direct Stafford Loans, becomes 

ineligible for such loan as a result of paragraph (1), interest on 

all Federal Direct Stafford Loans that were disbursed to such 

borrower on or after July 1, 2013, shall accrue. Such interest 

shall be paid or capitalized in the same manner as interest on 

a Federal Direct Unsubsidized Stafford Loan is paid or capitalized under section 428H(e)(2). 

‘‘(3) PERIOD OF ENROLLMENT.— 

‘‘(A) IN GENERAL.—The aggregate period of enrollment 

referred to in paragraph (1) shall not exceed the lesser of— 

‘‘(i) a period equal to 150 percent of the published 

length of the educational program in which the student 

is enrolled; or 

‘‘(ii) in the case of a borrower who was previously 

enrolled in one or more other educational programs 

that began on or after July 1, 2013, and subject to subparagraph (B), a period of time equal to the difference 

between— 

‘‘(I) 150 percent of the published length of the 

longest educational program in which the borrower 

was, or is, enrolled; and 

‘‘(II) any periods of enrollment in which the 

borrower received a Federal Direct Stafford Loan. 

‘‘(B) REGULATIONS.—The Secretary shall specify in regulation— 


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‘‘(i) how the aggregate period described in subparagraph (A) shall be calculated with respect to a borrower who was or is enrolled on less than a full-time 

basis; and 

‘‘(ii) how such aggregate period shall be calculated 

to include a course of study or program described in 

paragraph (3)(B) or (4)(B) of section 484(b), respectively.’’. 

(b) INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING REQUIREMENT AND MASTER CALENDAR EXCEPTION.—Sections 482(c) 

and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 

1098a) shall not apply to the amendment made by subsection (a), 

or to any regulations promulgated under such amendment. 

DIVISION G—SURFACE 

TRANSPORTATION EXTENSION 

SEC. 110001. SHORT TITLE. 

This division may be cited as the ‘‘Surface Transportation Extension Act of 2012, Part II’’. 

TITLE I—FEDERAL-AID HIGHWAYS 

SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS. 

(a) IN GENERAL.—Section 111 of the Surface Transportation 

Extension Act of 2011, Part II (Public Law 112–30; 125 Stat. 343; 

126 Stat. 272) is amended— 

(1) by striking ‘‘the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ each place it appears and inserting ‘‘fiscal year 2012’’; 

(2) by striking ‘‘3⁄4 of’’ each place it appears; and 

(3) in subsection (a) by striking ‘‘June 30, 2012’’ and inserting ‘‘September 30, 2012’’. 

(b) USE OF FUNDS.—Section 111(c) of the Surface Transportation Extension Act of 2011, Part II (125 Stat. 343; 126 Stat. 272) 

is amended— 

(1) in paragraph (3)— 

(A) in subparagraph (A) by striking ‘‘, except that during such period’’ and all that follows before the period at 

the end; and 

(B) in subparagraph (B)(ii) by striking ‘‘$479,250,000’’ 

and inserting ‘‘$639,000,000’’; and 

(2) by striking paragraph (4). 

(c) EXTENSION OF AUTHORIZATIONS UNDER TITLE V OF

SAFETEA–LU.—Section 111(e)(2) of the Surface Transportation Extension Act of 2011, Part II (125 Stat. 346; 126 Stat. 272) is amended by striking ‘‘the period beginning on October 1, 2011, and ending 

on June 30, 2012.’’ and inserting ‘‘fiscal year 2012.’’. 

(d) ADMINISTRATIVE EXPENSES.—Section 112(a) of the Surface 

Transportation Extension Act of 2011, Part II (125 Stat. 346; 126 

Stat. 272) is amended by striking ‘‘$294,641,438 for the period beginning on October 1, 2011, and ending on June 30, 2012.’’ and inserting ‘‘$392,855,250 for fiscal year 2012.’’. 


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TITLE II—EXTENSION OF HIGHWAY 

SAFETY PROGRAMS 

SEC. 112001. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HIGHWAY SAFETY PROGRAMS. 

(a) CHAPTER 4 HIGHWAY SAFETY PROGRAMS.—Section 

2001(a)(1) of SAFETEA–LU (119 Stat. 1519) is amended by striking 

‘‘$235,000,000 for each of fiscal years 2009 through 2011’’ and all 

that follows through the period at the end and inserting ‘‘and 

$235,000,000 for each of fiscal years 2009 through 2012.’’. 

(b) HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.—Section 

2001(a)(2) of SAFETEA–LU (119 Stat. 1519) is amended by striking 

‘‘and $81,183,000 for the period beginning on October 1, 2011, and 

ending on June 30, 2012.’’ and inserting ‘‘and $108,244,000 for fiscal year 2012.’’. 

(c) OCCUPANT PROTECTION INCENTIVE GRANTS.—Section 

2001(a)(3) of SAFETEA–LU (119 Stat. 1519) is amended by striking 

‘‘$25,000,000 for each of fiscal years 2006 through 2011’’ and all 

that follows through the period at the end and inserting ‘‘and 

$25,000,000 for each of fiscal years 2006 through 2012.’’. 

(d) SAFETY BELT PERFORMANCE GRANTS.—Section 2001(a)(4) of 

SAFETEA–LU (119 Stat. 1519) is amended by striking ‘‘and 

$36,375,000 for the period beginning on October 1, 2011, and ending on June 30, 2012.’’ and inserting ‘‘and $48,500,000 for fiscal 

year 2012.’’. 

(e) STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.—Section 2001(a)(5) of SAFETEA–LU (119 Stat. 1519) is 

amended by striking ‘‘for each of fiscal years 2006 through 2011’’ 

and all that follows through the period at the end and inserting ‘‘for 

each of fiscal years 2006 through 2012.’’. 

(f) ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES INCENTIVE

GRANT PROGRAM.—Section 2001(a)(6) of SAFETEA–LU (119 Stat. 

1519) is amended by striking ‘‘$139,000,000 for each of fiscal years 

fiscal years 2009 through 2011’’ and all that follows through the period at the end and inserting ‘‘and $139,000,000 for each of fiscal 

years 2009 through 2012.’’. 

(g) NATIONAL DRIVER REGISTER.—Section 2001(a)(7) of 

SAFETEA–LU (119 Stat. 1520) is amended by striking ‘‘and 

$3,087,000 for the period beginning on October 1, 2011, and ending 

on June 30, 2012.’’ and inserting ‘‘and $4,116,000 for fiscal year 

2012.’’. 

(h) HIGH VISIBILITY ENFORCEMENT PROGRAM.—Section 

2001(a)(8) of SAFETEA–LU (119 Stat. 1520) is amended by striking 

‘‘for each of fiscal years 2006 through 2011’’ and all that follows 

through the period at the end and inserting ‘‘for each of fiscal years 

2006 through 2012.’’. 

(i) MOTORCYCLIST SAFETY.—Section 2001(a)(9) of SAFETEA– 

LU (119 Stat. 1520) is amended by striking ‘‘$7,000,000 for each of 

fiscal years 2009 through 2011’’ and all that follows through the period at the end and inserting ‘‘and $7,000,000 for each of fiscal 

years 2009 through 2012.’’. 

(j) CHILD SAFETY AND CHILD BOOSTER SEAT SAFETY INCENTIVE

GRANTS.—Section 2001(a)(10) of SAFETEA–LU (119 Stat. 1520) is 

amended by striking ‘‘$7,000,000 for each of fiscal years 2009 


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through 2011’’ and all that follows through the period at the end 

and inserting ‘‘and $7,000,000 for each of fiscal years 2009 through 

2012.’’. 

(k) ADMINISTRATIVE EXPENSES.—Section 2001(a)(11) of 

SAFETEA–LU (119 Stat. 1520) is amended by striking 

‘‘$25,328,000 for fiscal year 2011’’ and all that follows through the 

period at the end and inserting ‘‘and $25,328,000 for each of fiscal 

years 2011 and 2012.’’. 

SEC. 112002. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION PROGRAMS. 

(a) FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

GRANTS.—Section 31104(a)(8) of title 49, United States Code, is 

amended to read as follows: 

‘‘(8) $212,000,000 for fiscal year 2012.’’. 

(b) ADMINISTRATIVE EXPENSES.— 

(1) IN GENERAL.—Section 31104(i)(1)(H) of title 49, United 

States Code, is amended to read as follows: 

‘‘(H) $244,144,000 for fiscal year 2012.’’. 

(2) TECHNICAL CORRECTION.—Section 31104(i)(1)(F) of title 

49, United States Code, is amended to read as follows: 

‘‘(F) $239,828,000 for fiscal year 2010;’’. 

(c) GRANT PROGRAMS.—Section 4101(c) of SAFETEA–LU (119 

Stat. 1715) is amended— 

(1) in paragraph (1) by striking ‘‘and $22,500,000 for the 

period beginning on October 1, 2011, and ending on June 30, 

2012.’’ and inserting ‘‘and $30,000,000 for fiscal year 2012.’’; 

(2) in paragraph (2) by striking ‘‘2011 and $24,000,000 for 

the period beginning on October 1, 2011, and ending on June 

30, 2012.’’ and inserting ‘‘2012.’’; 

(3) in paragraph (3) by striking ‘‘2011 and $3,750,000 for 

the period beginning on October 1, 2011, and ending on June 

30, 2012.’’ and inserting ‘‘2012.’’; 

(4) in paragraph (4) by striking ‘‘2011 and $18,750,000 for 

the period beginning on October 1, 2011, and ending on June 

30, 2012.’’ and inserting ‘‘2012.’’; and 

(5) in paragraph (5) by striking ‘‘2011 and $2,250,000 for 

the period beginning on October 1, 2011, and ending on June 

30, 2012.’’ and inserting ‘‘2012.’’. 

(d) NEW ENTRANT AUDITS.—Section 31144(g)(5)(B) of title 49, 

United States Code, is amended by striking ‘‘and up to $21,750,000 

for the period beginning on October 1, 2011, and ending on June 

30, 2012,’’. 

(e) OUTREACH AND EDUCATION.—Section 4127(e) of SAFETEA– 

LU (119 Stat. 1741) is amended by striking ‘‘and 2011 (and 

$750,000 to the Federal Motor Carrier Safety Administration, and 

$2,250,000 to the National Highway Traffic Safety Administration, 

for the period beginning on October 1, 2011, and ending on June 

30, 2012)’’ and inserting ‘‘2011, and 2012’’. 

(f) WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.—Section 

4213(d) of SAFETEA–LU (49 U.S.C. 14710 note; 119 Stat. 1759) is 

amended by striking ‘‘June 30, 2012’’ and inserting ‘‘September 30, 

2012’’. 


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SEC. 112003. ADDITIONAL PROGRAMS. 

Section 7131(c) of SAFETEA–LU (119 Stat. 1910) is amended 

by striking ‘‘and $870,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’ and inserting ‘‘and $1,160,000 

for fiscal year 2012’’. 

TITLE III—PUBLIC TRANSPORTATION 

PROGRAMS 

SEC. 113001. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS. 

Section 5305(g) of title 49, United States Code, is amended by 

striking ‘‘2011 and for the period beginning on October 1, 2011, and 

ending on June 30, 2012’’ and inserting ‘‘2012’’. 

SEC. 113002. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS. 

Section 5307(b)(2) of title 49, United States Code, is amended— 

(1) by striking the paragraph heading and inserting ‘‘SPECIAL RULE FOR FISCAL YEARS 2005 THROUGH 2012.—’’ ; 

(2) in subparagraph (A) by striking ‘‘2011 and the period 

beginning on October 1, 2011, and ending on June 30, 2012,’’ 

and inserting ‘‘2012,’’; and 

(3) in subparagraph (E)— 

(A) by striking the subparagraph heading and inserting ‘‘MAXIMUM AMOUNTS IN FISCAL YEARS 2008 THROUGH

2012 .—’’; and 

(B) in the matter preceding clause (i) by striking ‘‘2011 

and during the period beginning on October 1, 2011, and 

ending on June 30, 2012’’ and inserting ‘‘2012’’. 

SEC. 113003. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT 

GRANTS. 

Section 5309(m) of title 49, United States Code, is amended— 

(1) in paragraph (2)— 

(A) by striking the paragraph heading and inserting 

‘‘FISCAL YEARS 2006 THROUGH 2012.—’’; 

(B) in the matter preceding subparagraph (A) by striking ‘‘2011 and the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘2012’’; and 

(C) in subparagraph (A)(i) by striking ‘‘2011 and 

$150,000,000 for the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘2012’’; 

(2) in paragraph (6)— 

(A) in subparagraph (B) by striking ‘‘2011 and 

$11,250,000 shall be available for the period beginning on 

October 1, 2011, and ending on June 30, 2012,’’ and inserting ‘‘2012’’; and 

(B) in subparagraph (C) by striking ‘‘though 2011 and 

$3,750,000 shall be available for the period beginning on 

October 1, 2011, and ending on June 30, 2012,’’ and inserting ‘‘through 2012’’; and 

(3) in paragraph (7)— 

(A) in subparagraph (A)— 

(i) in the matter preceding clause (i)— 

(I) in the first sentence by striking ‘‘2011 and 

$7,500,000 shall be available for the period beginVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00596 Fmt 6659 Sfmt 6603 E:\HR\OC\HR557.XXX HR557

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ning on October 1, 2011, and ending on June 30, 

2012,’’ and inserting ‘‘2012’’; and 

(II) in the second sentence by inserting ‘‘each 

fiscal year’’ before the colon; 

(ii) in clause (i) by striking ‘‘for each fiscal year and $1,875,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(iii) in clause (ii) by striking ‘‘for each fiscal year and $1,875,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(iv) in clause (iii) by striking ‘‘for each fiscal year and $750,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(v) in clause (iv) by striking ‘‘for each fiscal year and $750,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(vi) in clause (v) by striking ‘‘for each fiscal year and $750,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(vii) in clause (vi) by striking ‘‘for each fiscal year and $750,000 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(viii) in clause (vii) by striking ‘‘for each fiscal year and $487,500 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; and 

(ix) in clause (viii) by striking ‘‘for each fiscal year and $262,500 for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’; 

(B) in subparagraph (B) by striking clause (vii) and inserting the following: ‘‘(vii) $13,500,000 for fiscal year 2012.’’; 

(C) in subparagraph (C) by striking ‘‘and during the 

period beginning on October 1, 2011, and ending on June 

30, 2012,’’; 

(D) in subparagraph (D) by striking ‘‘and not less than 

$26,250,000 shall be available for the period beginning on 

October 1, 2011, and ending on June 30, 2012,’’; and 

(E) in subparagraph (E) by striking ‘‘and $2,250,000 

shall be available for the period beginning on October 1, 

2011, and ending on June 30, 2012,’’. 

SEC. 113004. APPORTIONMENT OF FORMULA GRANTS FOR OTHER 

THAN URBANIZED AREAS. 

Section 5311(c)(1)(G) of title 49, United States Code, is amended to read as follows: 

‘‘(G) $15,000,000 for fiscal year 2012.’’. 

SEC. 113005. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS. 

Section 5337 of title 49, United States Code, is amended by 

striking subsection (g). 

SEC. 113006. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION. 

(a) FORMULA AND BUS GRANTS.—Section 5338(b) of title 49, 

United States Code, is amended— 

(1) in paragraph (1) by striking subparagraph (G) and inserting the following: ‘‘(G) $8,360,565,000 for fiscal year 2012.’’; and 


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(2) in paragraph (2)— (A) in subparagraph (A) by striking ‘‘$113,500,000 for each of fiscal years 2009 through 2011, and $85,125,000 for 

the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $113,500,000 for each 

of fiscal years 2009 through 2012’’; (B) in subparagraph (B) by striking ‘‘$4,160,365,000 

for each of fiscal years 2009 through 2011, and 

$3,120,273,750 for the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘and 

$4,160,365,000 for each of fiscal years 2009 through 2012’’; (C) in subparagraph (C) by striking ‘‘$51,500,000 for each of fiscal years 2009 through 2011, and $38,625,000 for 

the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $51,500,000 for each of 

fiscal years 2009 through 2012’’; (D) in subparagraph (D) by striking ‘‘$1,666,500,000 

for each of fiscal years 2009 through 2011, and 

$1,249,875,000 for the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘and 

$1,666,500,000 for each of fiscal years 2009 through 2012’’; (E) in subparagraph (E) by striking ‘‘$984,000,000 for each of fiscal years 2009 through 2011, and $738,000,000 

for the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $984,000,000 for each 

of fiscal years 2009 through 2012’’; (F) in subparagraph (F) by striking ‘‘$133,500,000 for each of fiscal years 2009 through 2011, and $100,125,000 

for the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $133,500,000 for each 

of fiscal years 2009 through 2012’’; (G) in subparagraph (G) by striking ‘‘$465,000,000 for each of fiscal years 2009 through 2011, and $348,750,000 

for the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $465,000,000 for each 

of fiscal years 2009 through 2012’’; 

(H) in subparagraph (H) by striking ‘‘$164,500,000 for 

each of fiscal years 2009 through 2011, and $123,375,000 

for the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $164,500,000 for each 

of fiscal years 2009 through 2012’’; 

(I) in subparagraph (I) by striking ‘‘$92,500,000 for 

each of fiscal years 2009 through 2011, and $69,375,000 for 

the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $92,500,000 for each of 

fiscal years 2009 through 2012’’; 

(J) in subparagraph (J) by striking ‘‘$26,900,000 for 

each of fiscal years 2009 through 2011, and $20,175,000 for 

the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $26,900,000 for each of 

fiscal years 2009 through 2012’’; 

(K) in subparagraph (K) by striking ‘‘for each of fiscal 

years 2006 through 2011 and $2,625,000 for the period beginning on October 1, 2011, and ending on June 30, 2012,’’ 

and inserting ‘‘for each of fiscal years 2006 through 2012’’; 


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(L) in subparagraph (L) by striking ‘‘for each of fiscal 

years 2006 through 2011 and $18,750,000 for the period beginning on October 1, 2011, and ending on June 30, 2012,’’ 

and inserting ‘‘for each of fiscal years 2006 through 2012’’; 

(M) in subparagraph (M) by striking ‘‘$465,000,000 for 

each of fiscal years 2009 through 2011, and $348,750,000 

for the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $465,000,000 for each 

of fiscal years 2009 through 2012’’; and 

(N) in subparagraph (N) by striking ‘‘$8,800,000 for 

each of fiscal years 2009 through 2011, and $6,600,000 for 

the period beginning on October 1, 2011, and ending on 

June 30, 2012,’’ and inserting ‘‘and $8,800,000 for each of 

fiscal years 2009 through 2012’’. 

(b) CAPITAL INVESTMENT GRANTS.—Section 5338(c)(7) of title 

49, United States Code, is amended to read as follows: 

‘‘(7) $1,955,000,000 for fiscal year 2012.’’. 

(c) RESEARCH AND UNIVERSITY RESEARCH CENTERS.—Section 

5338(d) of title 49, United States Code, is amended— 

(1) in paragraph (1), in the matter preceding subparagraph 

(A), by striking ‘‘through 2011, and $33,000,000 for the period 

beginning on October 1, 2011, and ending on June 30, 2012,’’ 

and inserting ‘‘through 2011, and $44,000,000 for fiscal year 

2012,’’; and 

(2) by striking paragraph (3) and inserting the following: 

‘‘(3) ADDITIONAL AUTHORIZATIONS.— 

‘‘(A) RESEARCH.—Of amounts authorized to be appropriated under paragraph (1) for fiscal year 2012, the Secretary shall allocate for each of the activities and projects 

described in subparagraphs (A) through (F) of paragraph 

(1) an amount equal to 63 percent of the amount allocated 

for fiscal year 2009 under each such subparagraph. 

‘‘(B) UNIVERSITY CENTERS PROGRAM.— 

‘‘(i) FISCAL YEAR 2012.—Of the amounts allocated 

under paragraph (1)(C) for the university centers program under section 5506 for fiscal year 2012, the Secretary shall allocate for each program described in 

clauses (i) through (iii) and (v) through (viii) of paragraph (2)(A) an amount equal to 63 percent of the 

amount allocated for fiscal year 2009 under each such 

clause. 

‘‘(ii) FUNDING.—If the Secretary determines that a 

project or activity described in paragraph (2) received 

sufficient funds in fiscal year 2011, or a previous fiscal 

year, to carry out the purpose for which the project or 

activity was authorized, the Secretary may not allocate 

any amounts under clause (i) for the project or activity 

for fiscal year 2012 or any subsequent fiscal year.’’. 

(d) ADMINISTRATION.—Section 5338(e)(7) of title 49, United 

States Code, is amended to read as follows: 

‘‘(7) $98,713,000 for fiscal year 2012.’’. 

SEC. 113007. AMENDMENTS TO SAFETEA–LU. 

(a) CONTRACTED PARATRANSIT PILOT.—Section 3009(i)(1) of 

SAFETEA–LU (119 Stat. 1572) is amended by striking ‘‘2011 and 


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the period beginning on October 1, 2011, and ending on June 30, 

2012,’’ and inserting ‘‘2012,’’. 

(b) PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.—Section 

3011 of SAFETEA–LU (49 U.S.C. 5309 note; 119 Stat. 1588) is 

amended— 

(1) in subsection (c)(5) by striking ‘‘2011 and the period beginning on October 1, 2011, and ending on June 30, 2012’’ and 

inserting ‘‘2012’’; and 

(2) in the second sentence of subsection (d) by striking 

‘‘2011 and the period beginning on October 1, 2011, and ending 

on June 30, 2012,’’ and inserting ‘‘2012’’. 

(c) ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES

PILOT PROGRAM.—Section 3012(b)(8) of SAFETEA–LU (49 U.S.C. 

5310 note; 119 Stat. 1593) is amended by striking ‘‘June 30, 2012’’ 

and inserting ‘‘September 30, 2012’’. 

(d) OBLIGATION CEILING.—Section 3040(8) of SAFETEA–LU 

(119 Stat. 1639) is amended to read as follows: 

‘‘(8) $10,458,278,000 for fiscal year 2012, of which not more 

than $8,360,565,000 shall be from the Mass Transit Account.’’. 

(e) PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAPITAL PROJECTS.—Section 3043 of SAFETEA–LU (119 Stat. 1640) is 

amended— 

(1) in subsection (b), in the matter preceding paragraph (1), 

by striking ‘‘2011 and the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘2012’’; and 

(2) in subsection (c), in the matter preceding paragraph (1), 

by striking ‘‘2011 and the period beginning on October 1, 2011, 

and ending on June 30, 2012,’’ and inserting ‘‘2012’’. 

(f) ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY

PROGRAMS.—Section 3046 of SAFETEA–LU (49 U.S.C. 5338 note; 

119 Stat. 1706) is amended— 

(1) in subsection (b) by striking ‘‘fiscal year or period’’ and 

inserting ‘‘fiscal year’’; and 

(2) by striking subsection (c)(2) and inserting the following: 

‘‘(2) for fiscal year 2012, in amounts equal to 63 percent of 

the amounts allocated for fiscal year 2009 under each of paragraphs (2), (3), (5), and (8) through (25) of subsection (a).’’. 

TITLE IV—EFFECTIVE DATE 

SEC. 114001. EFFECTIVE DATE. 

This division and the amendments made by this division shall 

take effect on July 1, 2012. 

DIVISION H—BUDGETARY EFFECTS 

SEC. 120001. BUDGETARY EFFECTS. 

(a) PAYGO SCORECARD.—The budgetary effects of this Act shall 

not be entered on either PAYGO scorecard maintained pursuant to 

section 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

(b) SENATE PAYGO SCORECARD.—The budgetary effects of this 

Act shall not be recorded on any PAYGO scorecard maintained for 

purposes of section 201 of S. Con. Res. 21 (110th Congress). 


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Amend the title so as to read: ‘‘An Act to authorize funds for 

Federal-aid highways, highway safety programs, and transit programs, and for other purposes.’’. 

And the Senate agree to the same. 

From the Committee on Transportation and Infrastructure, for consideration of the House bill (except section 

141) and the Senate amendment (except secs. 1801, 40102, 

40201, 40202, 40204, 40205, 40305, 40307, 40309–40312, 

100112–100114, and 100116), and modifications committed 

to conference: 

JOHN L. MICA, 

DON YOUNG, 

JOHN J. DUNCAN, Jr., 

BILL SHUSTER, 

SHELLEY MOORE CAPITO, 

ERIC A. ‘‘RICK’’ CRAWFORD, 

JAIME HERRERA BEUTLER, 

LARRY BUCSHON, 

RICHARD L. HANNA, 

STEVE SOUTHERLAND II, 

JAMES LANKFORD, 

REID J. RIBBLE, 

From the Committee on Energy and Commerce, for consideration of sec. 142 and titles II and V of the House bill, 

and secs. 1113, 1201, 1202, subtitles B, C, D, and E of title 

I of Division C, secs, 32701–32705, 32710, 32713, 40101, 

and 40301 of the Senate amendment, and modifications 

committed to conference: 

FRED UPTON, 

ED WHITFIELD, 

HENRY A. WAXMAN, 

From the Committee on Natural Resources, for consideration of secs. 123, 142, 204, and titles III and VI of the 

House bill, and sec. 1116, subtitles C, F, and G of title I 

of Division A, sec. 33009, titles VI and VII of Division C, 

sec. 40101, subtitles A and B of title I of Division F, and 

sec. 100301 of the Senate amendment, and modifications 

committed to converence: 

DOC HASTINGS, 

ROB BISHOP, 

From the Committee on Science, Space, and Technology for 

consideration of secs. 121, 123, 136, and 137 of the House 

bill, and sec. 1534, subtitle F of title I of Division A, secs. 

20013, 20014, 20029, 31101, 31103, 31111, 31204, 31504, 

32705, 33009, 34008, and Division E of the Senate amendment, and modifications committed to conference: 

RALPH M. HALL, 

CHIP CRAVAACK, 

From the Committee on Ways and Means, for consideration of secs. 141 and 142 of the House bill, and secs. 1801, 

40101, 40102, 40201, 40202, 40204, 40205, 40301–40307, 

40309–40314, 100112–100114, and 100116 of the Senate 

amendment, and modifications committed to conference: 

DAVE CAMP, 


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PATRICK J. TIBERI, Managers on the Part of the House. 

BARBARA BOXER, 

MAX BAUCUS, 

JOHN D. ROCKEFELLER IV, 

RICHARD J. DURBIN, (with the 

exception of: Div. A, Title I, 

§ 1538—Asian Carp and Div. 

F, Title II, § 100206—Residual 

Risk) 

TIM JOHNSON, 

CHARLES E. SCHUMER, 

BILL NELSON, 

ROBERT MENENDEZ, 

JAMES M. INHOFE, 

DAVID VITTER, 

RICHARD C. SHELBY, 

KAY BAILEY HUTCHISON, 

Managers on the Part of the Senate. 


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(597) 

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

THE CONFERENCE 

The managers on the part of the Senate and the House at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the Senate to the bill ( H.R. 4348), to provide an extension of Federal-aid highway, highway safety, motor carrier safety, transit, and other programs funded out of the Highway Trust 

Fund pending enactment of a multiyear law reauthorizing such 

programs, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of 

the action agreed upon by the managers and recommended in the 

accompanying conference report: 

The House recedes from its disagreement to the amendment of 

the Senate to the text of the bill and agrees to the same with an 

amendment. 

A summary of the bill agreed to in conference is set forth 

below: 

Moving Ahead for Progress in the 21st Century (MAP–21) replaces the previous authorization, the Safe, Accountable, Flexible, 

Efficient Transportation Equity Act: A Legacy for Users 

(SAFETEA–LU), that expired on September 30, 2009 and which 

has been continued with a series of short-term extensions. MAP– 

21 will modernize and reform our current transportation system to 

help create jobs, accelerate economic recovery, and build the foundation for long-term prosperity. This conference report makes a 

number of necessary changes in the Federal-aid highway program 

structure to increase State flexibility and better serve the American people. 

DIVISION A—FEDERAL-AID HIGHWAYS AND HIGHWAY 

SAFETY CONSTRUCTION PROGRAMS 

Highway funding levels 

The conference report provides funding for the federal-aid 

highway program through fiscal 2014 at current funding levels 

with a small inflationary adjustment. 

Program consolidation 

The Senate and the House both sought to consolidate the number of programs in the federal-aid highway program to focus priorities and resources on key national goals. The conference report 

consolidates the number of highway programs by two-thirds. The 

elimination of dozens of programs makes more resources available 

to States and metropolitan areas to invest in their most critical 

needs to improve the condition and performance of their transportation system. 


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Project delivery 

The conference report combined provisions from the House and 

Senate bills focusing on the shared priority of accelerating project 

delivery. It maintains the vast majority of project acceleration provisions from S. 1813 and provisions from the House bill in addition 

to new provisions that will maintain substantive environment and 

public health protections while streamlining the creation and use 

of documents and environmental reviews, enhancing efficiency and 

accountability in the project delivery process. 

The conference report adopts and modifies provisions from the 

House bill directing the Secretary to designate, through rulemaking, certain activities as categorical exclusions under the National Environmental Policy Act. The Secretary is directed to designate the repair or reconstruction of a road, highway, or bridge 

damaged by a declared emergency or disaster as a categorical exclusion, if the repair or reconstruction project is in the same location and with the same specifications as the original project and is 

commenced within two years of the declaration of emergency or disaster. The Secretary is also directed to designate any project within 

the existing operational right-of-way as a categorical exclusion and 

defines the term ‘‘operational right-of-way’’. Additionally, the Secretary is directed to designate projects receiving limited Federal assistance as a categorical exclusion. The categorical exclusion applies to any project that receives less than $5,000,000 in Federal 

funds and any project with a total estimated cost of not more than 

$30,000,000 receiving Federal funds comprising less than 15 percent of the total estimated project costs. 

Performance measures 

The nation’s surface transportation programs have not provided sufficient accountability for how tax dollars are being spent 

on transportation projects and would benefit from a greater focus 

on key national priorities. The conference report focuses the highway program on key outcomes, such as reducing fatalities, improving road and bridge conditions, reducing congestion, increasing system reliability, and improving freight movement and economic vitality. 

Focus on the National Highway System 

The conference report combines the old interstate maintenance 

program into a new program called the National Highway Performance Program to address both the interstate system as well as an 

extended National Highway System. It is these roads that are most 

critical to our economic vitality, and the conference report ensures 

the roads and bridges that make up this system will be better 

maintained. 

Freight policy 

A top priority of the nation’s transportation system should be 

the safe and efficient movement of goods. The nation’s economic 

health is reliant upon a transportation system that provides for reliable and timely goods movement. 

This conference report establishes policies to improve freight 

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tegic Plan, encourages state freight plans and advisory committees, 

and provides incentives for states that fund projects to improve 

freight movement. 

America fast forward 

Given our massive investment needs and the limited funding 

available, we need to find ways to better leverage Federal dollars 

by encouraging additional non-Federal investment and helping to 

accelerate the benefits of State and locally funded transportation 

projects. 

This conference report builds upon the success of the TIFIA 

program to help communities leverage their transportation resources and stretch Federal dollars further than they have been 

stretched before. The conference report modifies the TIFIA program 

by increasing funding for the program to $1 billion per year, by increasing the maximum share of project costs from 33 percent to 49 

percent, by allowing TIFIA to be used to support a related set of 

projects, and by setting aside funding for projects in rural areas at 

more favorable terms. 

Gulf Coast restoration 

The conference report modifies a Senate provision related to 

Gulf Coast restoration known as the Resources and Ecosystems 

Sustainability, Tourism Opportunities and Revived Economies of 

the Gulf Coast States Act of 2012 (RESTORE Act). The provision 

establishes the Gulf Coast Restoration Trust Fund and places in 

the Trust Fund 80% of all civil penalties paid by responsible parties in connection with the Deepwater Horizon oil spill. Funding 

may be used to invest in projects and activities to restore the longterm health of the coastal ecosystem and local economies in the 

Gulf Coast Region, which includes the states of Mississippi, Louisiana, Alabama, Florida, and Texas. A portion of the funds will be 

allocated directly and equally to the five Gulf Coast states for ecological and economic recovery along the coast. A portion will be provided to the Gulf Coast Ecosystem Restoration Council established 

by the bill to develop and fund a comprehensive plan for the restoration of Gulf Coast ecosystems. A portion will be allocated 

among the states using an impact-based formula to implement 

state plans that have been approved by the Council. Finally, a portion of the fines will be allocated to a Gulf Coast ecosystem restoration, science, observation, monitoring and technology program and 

for grants to nongovernmental entities for the establishment of 

Gulf Coast centers of excellence. 

Harbor maintenance 

The Conference report modifies a Senate provision highlighting 

the significance of the nation’s ports for efficient movement of 

goods and products and the need for increased investment in the 

maintenance of these ports to promote the economic competiveness 

of the United States. The provision states the Sense of Congress 

that the Administration should request and the Congress should 

fully expend each year all of the revenues collected in the Harbor 

Maintenance Trust Fund (HMTF) for the operation and maintenance of the nation’s federally maintained ports. The provision also 


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expresses the importance of protecting other critical Army Corps 

programs, including inland navigation, flood and coastal storm protection, and ecosystem restoration, from funding reductions. 

Finally, the provision directs the Administration to provide an 

annual estimate of national harbor maintenance needs, including 

an estimate of the percentage of waterways that will be available 

for use based on the annual budget request as well as how much 

funding would be needed to achieve 95 percent availability of the 

nation’s ports and waterways within 3 years. 

DIVISION B—FEDERAL PUBLIC TRANSPORTATION ACT OF 

2012 

The Federal Public Transportation Act of 2012 contains historic improvements in safety oversight, streamlined review of new 

capital projects, program consolidation, and a shift from earmarks 

and discretionary programs to robust formula programs that public 

transportation systems can rely on to upgrade and improve aging 

infrastructure and vehicles. The Act provides increased funding 

levels for fiscal years 2013 and 2014 based on expected inflation, 

giving public transportation providers the stable funding needed to 

make essential investments. 

Secs. 20005 and 20006, 49 U.S.C. 5303/5304, metropolitan and 

statewide transportation planning 

The Conference report improves metropolitan and statewide 

planning processes to incorporate a more comprehensive performance-based approach. The conference committee requires the structure of all Metropolitan Planning Organizations include officials of 

public agencies that administer or operate public transportation 

systems within two years of enactment. 

The conference report creates a pilot program for transit-oriented development planning to advance planning efforts that support transit-oriented development around fixed guideway capital 

investment projects. Grants for planning will help communities develop strategies to facilitate transit-oriented development. 

Secs. 20007 and 20026, 49 U.S.C. 5307 and 5336, urbanized area 

formula grants 

Maintains the basic structure for urbanized area grants under 

Section 5307. The program continues to be the largest program for 

federal investment in public transportation. The ‘‘Job Access and 

Reverse Commute’’ program (JARC) has been moved to Section 

5307 and the conferees have removed the Senate bill set-aside for 

JARC activities. 

Maintains the existing criteria for use of 5307 funds for capital 

projects (operating expenses continue to be ineligible) in urban 

areas with a population greater than 200,000. In addition, the bill 

maintains language allowing small urbanized areas with populations under 200,000 to use up to 100 percent of their 5307 funding for operating expenses. A modified ‘‘100 bus rule’’ has been included, allowing systems with 76–100 buses operating in peak service to use up to 50% of their 5307 funding for operating expenses 

and those operating 75 or fewer buses to use up to 75% for operating expenses. 


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The Senate receded to the House request to remove a provision 

in the Senate bill establishing a program to allow public transportation providers temporary flexibility during periods of high unemployment to use a limited portion of their 5307 funds for up to two 

years for operating expenses. 

Sec. 20008, 49 U.S.C. 5309, Fixed Guideway Capital Investment 

Grants (new starts) 

Reforms and streamlines the ‘‘Fixed Guideway Capital Investment Grant’’ program (previously the ‘‘Major Capital Investment 

Grant’’ or ‘‘New Starts’’ program). Based on extensive feedback 

from project sponsors and other stakeholders, the bill streamlines 

the New Starts process to accelerate project delivery by eliminating 

duplicative steps in project development and instituting a modified 

program structure that will allow the Federal Transit Administration to review proposals quickly, without sacrificing effective 

project oversight. Projects under $100 million can utilize an expedited review 

process if they meet standards of similar highly qualified projects. 

The bill also creates a category of demonstration projects for sponsors that propose a significant amount of local and/or private funding and reduce the federal commitment required for the projects. 

Establishes a new category for capital investment projects by 

authorizing core capacity projects, which will undergo the same 

process as other ‘‘new starts’’ projects but provide an opportunity 

for existing systems to make necessary but significant investments 

that were not previously eligible for funding. The conference report 

requires that eligible activities under a core capacity project 

achieve at least a 10% increase in capacity along a corridor. 

The Senate agreed to a House request to modify the definition 

of Bus Rapid Transit projects in the Senate bill to allow broader 

use of the program. The conference report also includes incentives 

for the development of bus rapid transit projects that incorporate 

elements of fixed-guideway transit like light rail. 

Sec. 20009, 49 U.S.C. 5310, formula grants for the enhanced mobility of seniors and individuals with disabilities 

Consolidates the existing ‘‘Elderly and Disabled’’ (Sec. 5310) 

and ‘‘New Freedom’’ (Sec. 5317) programs into a single program 

that increases the level of resources available beyond the level of 

funding available under existing programs. The consolidated program will continue to ensure support for non-profit providers of 

transportation, and it will continue to make available funds for 

public transportation services that exceed the requirements of the 

Americans with Disabilities Act, as previously provided under the 

‘‘New Freedom’’ program. 

Sec. 20010, 49 U.S.C. 5311, formula grants for rural areas 

Maintains the existing structure providing funding to states for 

public transportation in rural areas. The 5311 formula is expanded 

to include the rural component of the ‘‘Job Access and Reverse 

Commute’’ program, and the level of public transportation service 

that is provided within a state’s rural areas is considered in the 

distribution of new funds. 


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Funding for the ‘‘Public Transportation on Indian Reserva- tions’’ program is increased to $30 million. The Secretary will distribute $5 million competitively each fiscal year, and $25 million 

will be available to Indian Tribes as formula grants to continue and 

expand public transportation services. 

The conference report also establishes a new ‘‘Appalachian De- velopment Public Transportation Program’’ to distribute $20 million to states within the Appalachian region with a goal of providing greater public transportation opportunities to residents in 

these challenged areas. 

Sec. 20011, 49 U.S.C. 5312, research, development, demonstration, 

and deployment projects 

Modifies the existing research program by eliminating earmarks and reforming the program to provide research focused on 

public transportation with a goal of providing meaningful results. 

Creates a clearly delineated pipeline with criteria for continued 

progress with a goal of taking an idea from the research phase 

through to demonstration and deployment in the field. For the first 

time, the program specifically provides funding for demonstration 

and deployment of products and services that may benefit public 

transportation; a major impediment to putting new technology to 

use in the field often cited by public transportation providers. 

Creates a section of the deployment program dedicated to low 

or no emission public transportation vehicles. Grants will be available for the acquisition of low or no emission vehicles and related 

equipment, the construction of facilities for low or no emission vehicles, and the rehabilitation of existing facilities to accommodate the 

use of low or no emission vehicles. 

Sec. 20012, 49 U.S.C. 5314, technical assistance and standards development 

Provides grants for activities that help public transportation 

systems more effectively and efficiently provide public transportation service and helps grant recipients administer funds received 

under this chapter. Authorizes the Federal Transit Administration 

to continue making grants for the development of voluntary standards by the public transportation industry related to procurement, 

safety and other subjects and authorizes the Secretary to fund 

technical assistance centers to assist grant recipients following a 

competitive process. 

Sec. 20014, 49 U.S.C. 5318, bus testing facilities 

Instructs the Secretary to certify one facility for testing new 

bus models. Requires the Secretary to work with the bus industry 

to develop a mutually agreed upon pass/fail test for vehicles to ensure the safety and reliability of buses purchased with federal 

funds. 

Sec. 20015, 49 U.S.C. 5322, public transportation workforce development and human resource programs 

Authorizes the Secretary to make grants, or enter into contracts for, activities that address human resource and workforce 

needs as they apply to public transportation activities. Creates the 


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Innovative Public Transportation Workforce Development Program, 

a competitive grant program to promote and assist the development of innovative workforce development and human resource activities within the public transportation industry. 

Sec. 20017, 49 U.S.C. 5324, public transportation emergency relief 

program 

Establishes a program to assist States and public transportation systems pay for protecting, repairing, or replacing equipment 

and facilities that are in danger of suffering serious damage or 

have suffered serious damage as a result of an emergency. 

Sec. 20019, 49 U.S.C. 5326, transit asset management 

Establishes a system to monitor and manage public transportation assets to improve safety and increase reliability and performance. Recipients are required to establish and use an asset 

management system to develop capital asset inventories and condition assessments, and report on the condition of their system as a 

whole, including a description of the change in overall condition 

since the last report. The Secretary of Transportation is also required to define the term ‘state of good repair,’ including objective 

standards for measuring the condition of capital assets. 

Sec. 20021, 49 U.S.C. 5329, public transportation safety program 

Establishes a National Public Transportation Safety Plan to 

improve the safety of all public transportation systems that receive 

Federal funding. The Secretary will develop minimum performance 

standards for vehicles used in public transportation and establish 

a training program for Federal and State employees who conduct 

safety audits and examinations of public transportation systems. 

Requires public transportation agencies to establish comprehensive safety plans, thus encouraging a ‘‘culture of safety’’ in 

which each employee completes a safety training program that includes continuing safety education and training. The Senate receded to a House request to give smaller systems the option to rely 

on states to prepare these plans. 

Improves the effectiveness of State Safety Oversight Agencies 

and increases federal funding for safety. States will submit proposals for state safety oversight programs for rail fixed guideway 

public transportation systems to the Secretary, and upon approval, 

receive funding at an 80 percent Federal share. The Act builds on 

the existence of State safety oversight agencies and requires them 

to be legally and financially independent from the rail fixed guideway systems they oversee, and have the authority, staff training 

and expertise to enforce Federal and state safety laws. 

At the request of the House the conference changes the nature 

of the enforcement powers contained in the Senate bill. Instead of 

direct oversight of public transportation agencies, the program relies on State Safety Oversight Agencies to provide direct oversight 

of rail fixed guideway public transportation providers. 

Sec. 20027, 49 U.S.C. 5337, state of good repair grant program 

Modernizes, renames, and provides historic levels of funding 

for the old ‘‘Rail Modernization’’ program by establishing a program 


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structure and defining eligible expenses under the program with a 

goal of moving all systems towards a state of good repair and enabling systems to maintain a state of good repair. 

The program has two major components: a rail fixed guideway 

state of good repair formula program and a high intensity bus state 

of good repair formula program. Funding tiers and earmarks in the 

old rail modernization program have been eliminated and replaced 

with a new structure that focuses on the age of the system, revenue vehicle miles and directional route miles. 

DIVISION C—TRANSPORTATION SAFETY AND SURFACE 

TRANSPORTATION POLICY 

TITLE I—MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT

Highway Safety Grant Programs. The conference report includes provisions that restructure the existing highway safety 

grant programs administered by the National Highway Traffic 

Safety Administration (NHTSA). The conference report largely reflects the Senate approach on modifications to the existing formula 

grant programs, including the establishment of a single grant application and reporting process for all grants received under this 

title, the adoption of performance measures, and the establishment 

of planning and reporting requirements for the states. In addition, 

the conference report inserts a prohibition on state use of these formula grant funds to pay for red light or speed cameras. The report 

moves a provision establishing a cooperative research and evaluation program into a different section, but continues to fund it from 

the funds provided for the formula grant program. 

The conference report accepts the Senate approach on incentive 

grants, but consolidates all of those grants into a single section in 

Code. The new Section 405 of Title 23, ‘‘National Priority Safety 

Programs,’’ allocates funds across six incentive grant programs and 

allows such funds to be used for a research program on technology 

to prevent impaired driving. The conference report retains the Senate language with respect to state traffic safety information system 

improvement grants, the motorcycle safety grant program, and the 

high visibility enforcement program. 

The conference report retains the Senate language with respect 

to an occupant protection incentive grant with two modifications. 

First, the report provides the highest performing states with additional flexibility in spending grant funds. Second, the report does 

not specifically state that education to the public concerning the 

dangers of children left unattended in vehicles is an allowable use 

of these funds, however the conferees agree that such education efforts could be carried out under other allowable uses, including 

education to the public concerning the proper use of child restraints. 

The conference report reflects the Senate approach with regard 

to the impaired driving countermeasures and teen driver safety 

grants with one modification made to each that allows states additional flexibility in spending a percentage of funds received through 

these programs. The report also accepts the Senate approach on 

distracted driving incentive grants, with one change to the eligibility requirements for the grants. 


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Highway Safety Research. The conference report accepts the 

Senate approach to modifying the highway safety research authorities provided to NHTSA. The report strikes provisions in the Senate bill that authorized additional collaborative research and development with non-federal entities, allowed the Secretary to establish 

an international highway safety information and cooperation program, funded training for highway safety personnel, and created a 

clearinghouse for information about best practices for driver’s licensing concerning drivers with medical issues. The report removes 

language in the Senate bill that allowed NHTSA to develop model 

specifications for devices. The conferees understand the removal of 

this language does not alter the current authority of NHTSA in 

this area. 

The conference report modifies Senate language providing 

NHTSA with the authority to conduct research into advanced technology to prevent impaired driving, and allows the Secretary to use 

funds from the National Priority Safety Programs to fund this research. 

Enhanced Safety Authorities. The conference report includes 

several provisions intended to enhance NHTSA’s safety authorities. 

The conference report revises the Senate language on civil penalties and sets the maximum penalty at $35 million for a related 

series of violations. The increase will take effect one year after enactment or when NHTSA issues a rule interpreting the new civil 

penalty factors, whichever is earlier, and the conferees agree that 

the new penalty amount will only be subject to adjustment for inflation occurring thereafter. The conference report maintains the 

Senate approach on motor vehicle safety research and development 

with modification, including to NHTSA’s authority to plan, design, 

or build facilities. The conference report largely maintains the Senate approach providing NHTSA additional authority over imported 

motor vehicles and motor vehicle equipment, though it strikes a 

provision related to financial responsibility requirements for importers and modifies a provision relating to conditions of importation. 

Transparency and Accountability. The conference report contains several provisions designed to increase transparency and accountability at NHTSA and in the auto industry. The conference 

report adopts a modified Senate approach on establishing public accessibility to vehicle recall information and further modifies Senate 

provisions addressing the set of communications with dealers that 

must be made available to the public. The report strikes the provision regarding public availability of early warning reporting data. 

The report strikes a provision imposing new post-employment restrictions for vehicle safety officials at NHTSA, but retains language calling on the inspector general to report on the issue. The 

report slightly modifies the whistleblower protection provision and 

calls on the Government Accountability Office to examine this and 

other such provisions. The report slightly modifies the provision directing NHTSA to study crash data collection. And the report 

makes slight modifications to NHTSA’s authority to require additional recall notifications. 

Vehicle Electronics and Safety Standards. The conference report maintains a Senate provision that establishes a Council for 


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Vehicle Electronics, Vehicle Software, and Emerging Technologies 

to build, implement, and aggregate NHTSA’s expertise in passenger motor vehicle electronics and other new and emerging technologies. The conference report includes a provision calling on 

NHTSA to evaluate vehicle electronic systems and report to Congress on highest priority areas for safety. The conference report 

strikes all other safety mandates contained in Subtitle D of the 

Senate bill. 

Child Safety Standards. The conference report maintains the 

Senate approach with regard to child safety. The report strikes 

mandates for new safety standards for booster seats and child restraint anchorage systems because conferees understand that 

NHTSA has completed a rulemaking that achieves these goals. The 

report modifies the mandate that NHTSA update its frontal impact 

test parameters for child safety seats to clarify that the mandate 

only applies to the seat assembly specifications. The report revises 

the provision relating to unattended passengers to a discretionary 

research effort without any mandate for NHTSA to begin a rulemaking process. 

Improved Daytime and Nighttime Visibility of Agricultural 

Equipment. The Conference report accepts the Senate language. 

TITLE II—COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT

ACT OF 2012 

Commercial Motor Vehicle Registration requirements. The conference report includes several provisions amending registration requirements under federal law for commercial motor vehicles 

(CMV), freight forwarders, and brokers. The conference report 

largely adopts the Senate registration provisions. The provisions 

include new requirements, such as completing a written examination and applying for a US DOT number, as a precondition for 

being registered. The included provisions amend safety fitness requirements and require license holders to provide registration updates. The conference report also includes Senate provisions for 

registering household goods motor carriers, but removes provisions 

directing the Secretary to establish education and assistance programs to address the problems of household property being held 

hostage. 

The conference report makes changes to some Senate registration provisions. It retains the current presumption in favor of registration, removes a management plan requirement, and changes 

written examination provisions. For providers of motorcoach services, the conference report also replaces a pre-authorization audit 

requirement with a requirement that new operators undergo a 

safety review within 120 days of beginning operations. The conference report also removes requirements to periodically update 

registration information when no changes have been made. 

The conference report includes a number of Senate provisions 

to address motor carrier companies that mask prior noncompliance 

and adverse safety history. The provisions authorize the Secretary 

to withhold, suspend, amend, or revoke a motor carrier’s registration if the carrier failed to disclose an adverse safety history or 

other facts relevant to its past regulatory compliance. The provisions authorize similar action where the Secretary finds that withVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00612 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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in the previous 3 years the carrier: (1) was closely related to another motor carrier with a poor compliance history; and (2) did not 

disclose this relationship in its application. The Secretary is granted authority to refuse or revoke a USDOT number to an applicant 

that is unfit, unwilling or unable to comply with the safety regulations. The conference report amends some of the Senate provisions 

to limit the unintended results of punishing individuals who were 

not guilty parties in previous companies. 

The conference report adopts several Senate penalty provisions 

for operations in violation of registration requirements. The conference report includes civil penalties and revocation authority for 

operating without registration, operating as imminent hazard, and 

transporting hazardous wastes without necessary registration. Provisions increase the civil penalties for motor carriers, motor carriers of migrant workers and private motor carriers that disobey a 

subpoena or a requirement of the Secretary to produce witnesses 

or records. Other provisions included authorize the Secretary to 

suspend, amend or revoke the registration of a motor carrier, 

broker or freight forwarder for failing to obey an administrative 

subpoena. Another provision authorizes the Secretary to place out 

of service the operations of a motor carrier discovered to be operating vehicles without the required registration, or operating beyond the scope of the registration granted. The conference report 

amends the Senate provision for hazardous waste transportation 

penalties and sets the penalty range at not less than $20,000 but 

not to exceed $40,000. 

Electronic logging devices. The conference report includes provisions directing the Secretary to issue regulations requiring electronic logging devices for recording hours of service in commercial 

motor vehicles and sets basic performance standards for the device. 

The conference report adopted the Senate approach with some 

amendments. The conference report adds an hours of service field 

study to expand on a previous Federal Motor Carrier Safety Administration (FMCSA) report on driver fatigue and maximum driving time requirements focusing on the 34-hour restart rule. The 

conference report directs the Secretary, in prescribing regulations, 

to consider how the rule may reduce or eliminate requirements for 

drivers and motor carriers to retain supporting documentation associated with paper-based records. The conference report changes 

the name of the device and adds other language to make clear that 

the devices are to be used only to enforce federal regulations. The 

report also includes a definition of ‘‘tamper resistant’’ and provisions to ensure that appropriate measures are taken to protect the 

privacy of individuals and the confidentiality of the data. 

Commercial motor vehicle driver safety. The conference report 

includes several Senate provisions to address commercial driver 

safety: driver medical qualifications, operator training, driver’s license program, driver’s requirements and driver information systems. The conference report removes a Senate provision that would 

have directed the development of driver safety fitness ratings. The 

report also removes a study and report to Congress examining the 

extent to which detention time contributes to drivers violating 

hours of service requirements and driver fatigue. The conference 

report removes a Senate provision that would have amended the 


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membership of the Motor Carrier Safety Advisory Committee to 

specifically include non-profit employee organization representation. 

The provisions included direct the Secretary to establish a national registry of medical examiners, issue regulations to establish 

minimum entry-level training requirements for all CMV operators, 

require States to modernize commercial driver’s license (CDL) information systems, and add disqualification standards for drivers. 

The conference report includes Senate provisions for the commercial driver’s license program, but removes language for federal 

guidance on critical requirements for effective State CDL programs. 

The conference report includes alternate language directing states 

to prioritize areas that the Secretary has identified as critical in 

the most recent audit of their programs. 

The conference report also includes language for streamlining 

the process by which military members and veterans who operate 

heavy trucks during duty are able to obtain commercial driver’s licenses. The conference provision includes Senate language directing the Secretary to complete a study and report to Congress on 

what can be done to streamline the process. The report adds new 

language requiring the Secretary, based on recommendations of the 

report, to establish accelerated licensing procedures within 1 year 

of enactment. 

Drug and Alcohol Clearinghouse. The conference report includes Senate provisions directing the Secretary to establish a national repository for records relating to alcohol and controlled substances testing of CMV drivers. The records will be used to determine the qualifications for operating a CMV. The clearinghouse 

will include safeguards to protect the privacy of individuals to 

whom the information pertains and ensure that the information is 

not divulged to anyone not directly involved in evaluating the individual’s qualifications to drive a CMV. The conference report also 

includes Senate provisions for prohibiting an employer from hiring 

a driver unless he or she has determined that during the preceding 

three years that such driver: did not test positive in violation of the 

regulations at title 49, Code of Federal Regulations; and did not 

refuse a test under these regulations. Other included provisions 

grant preemption authority to the Secretary in regard to the reporting of valid positive results or refusals to take alcohol screening 

and drug tests, and apply civil penalties to any violators of privacy 

and reporting requirements. 

The conference report amends Senate provisions for archiving 

personal records to ensure further individual privacy protections. 

The conference report also includes amendments to the National 

Transportation Safety Board’s access to clearinghouse records. The 

conference report makes amendments to clarify that the clearinghouse will be used to determine whether individuals have existing 

employment prohibitions at the time of making hiring decisions. 

Motor Carrier Grant programs. The conference report does not 

include Senate provisions updating and consolidating grant programs and processes. While the conference believes that reducing 

administrative burdens on the states and local governments by 

streamlining grants processes is beneficial, the short time frame of 

the legislation does not allow for these changes. In that regard, the 


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conference agrees to retain existing grant programs and authorizes 

them for FY 2013 and FY 2014 at current funding levels. The conference report adds language allowing the Secretary to examine 

methods and approaches for streamlining grants administration 

and processes to reduce burdens for the states and local governments. The conference report makes some administrative amendments to the existing commercial driver license program improvement grant that was included in the Senate bill. The conference 

also retains the Senate provision requiring a report to Congress on 

resuming the commercial vehicle information systems and networks program. 

Motorcoach Safety. The conference report includes provisions 

addressing the safety of motorcoach operations. The conference 

adopts the Senate approach, but modifies some rulemaking and research requirements and removes registration provisions. The conference report consolidates several research and rulemakings related to fire prevention and mitigation. The report amends language on assessing the feasibility of retrofitting existing 

motorcoaches with safety requirements. The report makes conforming definition changes regarding the registration of 

motorcoaches. The registration provisions were not included in the 

conference report because they are largely redundant to the provisions in the report updating registration requirements for all motor 

carriers. 

The conference report also includes a Senate provision for oversight of motorcoaches. The provision directs the Secretary to establish a safety fitness system to rate motor coaches, determine and 

assign a fitness rating for each motor coach, periodically review the 

safety ratings and make public the fitness ratings of each motorcoach. 

The conference report includes a new provision that directs the 

Secretary, to the extent feasible, to ensure that motorcoach research programs and rulemaking are carried out concurrently. The 

report also includes a provision requiring the Secretary to review 

and report to Congress on the current knowledge and skill testing 

requirements for a commercial driver’s license passenger endorsement. The conference agreement removes a Senate rulemaking requirement on distracted driving because FMCSA has already addressed this issue. 

Truck, Size and Weight. The conference report includes provisions directing the Secretary to study the effects of truck, size and 

weight on highway safety and infrastructure and compile a list of 

existing state truck size and weight laws. The conference report 

amends the Senate study provisions. The conference report includes language directing the Secretary to consider the effects of 

trucks operating in excess of federal law and regulations in comparison to those trucks that do not operate in excess of federal law 

and regulations, when assessing accident frequency and impacts to 

highway and bridge infrastructure. The conference report adopts 

the Senate requirement that the report must be submitted to Congress not later than 2 years after enactment. 

Financial responsibility requirements. The conference report 

includes provisions addressing the financial responsibility of 

freight-forwarders and brokers. These provisions direct 


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rulemakings to establish minimum financial solvency and bonding 

requirements for these entities. The conference agreement includes 

exemptions for air carrier and customs brokers who are already 

subject to financial responsibility requirements under federal law. 

Enforcement. The Senate bill included several provisions 

amending and updating FMCSA’s enforcement authorities. The 

conference report includes nine of the Senate provisions. Five of the 

Senate enforcement provisions were not included in the conference 

report: minimum prohibition on operation of unfit carriers, minimum out of service penalties, failure to pay civil penalty as a disqualifying offense, intrastate operations of interstate motor carriers 

and enforcement of safety laws and regulations. 

Exemptions. The conference report amends an exemption for 

the transportation of agricultural commodities by increasing the 

permitted travel radius from 100 air-miles to 150 air-miles. The 

conference report includes Senate language for a narrow exemption 

from federal requirements for covered farm vehicles. This conference report adopts the Senate language directing the Secretary 

to study and report to Congress on the safety impacts of the covered farm vehicle exemption. 

TITLE III—SURFACE TRANSPORTATION AND FREIGHT POLICY ACT OF

2012 

The Senate legislation included provisions establishing a comprehensive national surface transportation system and freight 

transportation policy. The policy would have provided certainty to 

states and localities by requiring the development of long term, 

strategic plans and directing transportation investment data collection and evaluation efforts. This Senate title had included provisions for safety standards to ensure that the design of federal 

transportation projects provides for adequate consideration of nonmotorized users. The conference report does not include this title. 

TITLE IV—HAZARDOUS MATERIALS TRANSPORTATION SAFETY

IMPROVEMENT ACT OF 2012 

Training Programs. There is currently no uniform training 

standard for hazardous materials (‘‘hazmat’’) inspectors and investigators. The conference bill requires the Secretary to establish 

standards for training these inspectors and investigators. The conference report modifies the Senate bill to require that the standards be developed not later than 18 months after enactment, and 

to clarify that the standards are established as guidelines. 

The conference report includes Senate provisions that amend 

training requirements for emergency responders of hazardous materials. These provisions direct that organizations receiving grant 

funding to train emergency responders have the ability to protect 

against accidents or incidents involving the transportation of hazardous material in accordance with existing regulations and standards. 

The conference report adds language to permit ‘‘portable training’’ which can be offered in any suitable setting rather than specific, designated facilities. This provision is included to allow training at locations and times convenient to students and instructors. 


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The conference report also adds requirements to ensure that the 

emergency responder and hazmat employee training grants be 

awarded through a competitive process. 

Data Collection and Research. The Senate bill recognized the 

need for increased research and data collection on hazardous materials programs and included a new pilot program for paperless hazard communications. The program would permit the Secretary to 

conduct pilot projects to evaluate the feasibility and effectiveness 

of using paperless hazard communications systems. The conference 

report includes these provisions and adds a requirement to conduct 

a cost-benefit analysis of the pilot projects and submit recommendations on the analysis and other findings in the report to 

Congress. 

The conference report includes Senate provisions requiring an 

assessment of the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) hazmat data collection, analysis and reporting. 

These provisions require PHMSA to develop an action plan and 

timeline to make improvements to its systems. The conference report directs PHMSA to conduct the assessment in consultation with 

Commandant of the Coast Guard, in lieu of in coordination with 

the Secretary of Homeland Security. This amendment was included 

because the Coast Guard is more specifically involved in handling 

accidents and investigations in the transportation of hazardous materials. 

Hazmat Transportation. The conference report includes a new 

requirement for the Secretary to study the safety of transporting 

flammable liquids in the external pipes of cargo tanks, ‘‘wetlines.’’ 

The report specifies that the Secretary may not issue a rulemaking 

on ‘‘wetlines’’ until the study is complete, but no later than two 

years after the date of enactment. The conference report also modifies Senate provisions that direct the Secretary to address transportation of perishable material after inspection, training for inspectors and the proper closing of packaging after inspections, by 

requiring that these regulations be issued within a year after enactment. 

The Senate bill included a provision that requires uniform regulations for the safe loading and unloading of hazardous materials 

on and off tank cars and cargo tank trucks. The provision was not 

included in the conference report due to an ongoing rulemaking addressing the matter. 

The conference report includes a Senate provision that ensures 

States update the hazardous materials route registry kept by the 

Department of Transportation. 

Special permitting. The conference report amends provisions 

included in the Senate bill on special permits. The conference report removes some language regarding criteria for special permits 

but includes the rulemaking provision for special permit and approvals procedures. It directs a review and analysis of special permits that have been in continuous effect for a 10-year period to determine which permits can be converted into the hazardous materials regulations (HMR). It includes factors that the Secretary may 

consider in reviewing special permits. After the analysis is complete, but no later than 3 years after enactment, the report authorizes the Secretary to issue regulations for incorporating special perVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00617 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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mits into the HMR. The amended language also directs the Secretary to publish in the Federal Register justification in the case 

of special permits that are not appropriate for incorporation into 

the HMR. Similarly, the amended language includes a process to 

review a special permit for incorporation into the regulations once 

that permit has been in effect for 10 years. 

Motor carrier safety permits. The conference report includes a 

provision directing the Secretary to conduct a review of the implementation of the hazardous material safety permit program. The 

conference report directs the Secretary to consider factors, including the list of hazardous materials requiring a safety permit, the 

criteria used by PHMSA to determine whether a hazardous material safety permit issued by a State is equivalent to the Federal 

permit, and actions to improve the program including an additional 

level of fitness review. Based on the findings of the review, the Secretary may either issue a rulemaking to make any necessary improvements to the program, or publish in the Federal Register justification for why a rulemaking is not necessary. 

Civil penalties. The conference report adds new language 

amending civil penalties by removing the minimum penalty 

amount for violations of hazardous materials laws and regulations. 

The conference report also adds language amending penalties for 

training violations. It includes a definition of ‘‘obstruct’’ regarding 

penalties for obstruction of inspections and investigations. 

TITLE V—NATIONAL RAIL SYSTEM PRESERVATION, EXPANSION AND

DEVELOPMENT ACT OF 2012 

The Senate legislation included provisions that would direct 

the Secretary, in collaboration with stakeholders, to develop a longrange, national rail plan. Other provisions in this title would 

amend statutory requirements for implementation of positive train 

control, refine Surface Transportation Board authorities and amend 

and update Amtrak’s environmental review, capital planning and 

financing, and inspector general authorities. The conference report 

does not include any of the provisions in this title. 

TITLE VI—SPORT FISH RESTORATION AND RECREATIONAL BOATING

SAFETY ACT OF 2012 

Sport Fish Restoration and Boating Trust Fund. The conference report adopts Senate provisions to authorize appropriations 

and amounts for administrative costs through FY 2013 for the 

Sport Fish Restoration and Boating Trust Fund. The Trust Fund, 

often referred to as Wallop-Breaux, is the mainstay of funding for 

State and Federal sport fish conservation and recreational boating 

safety programs. Funds go to projects that support sport fish conservation and habitat conservation in the States, and to assist 

States in establishing and maintaining recreational boating safety 

and boater education programs. The Trust Fund receives income 

from the following five sources: (1) motorboat fuel taxes; (2) annual 

tax receipts from small engine fuel used for outdoor power equipment; (3) a manufacturers’ excise tax on sport fishing equipment; 

(4) import duties on fishing tackle and on yachts and pleasure 

craft; and (5) interest on funds invested prior to disbursal. All monVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00618 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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1 Except where otherwise stated, all section references are to the Internal Revenue Code of 

1986, as amended (the ‘‘Code’’). 2This portion of the tax rates was enacted as a deficit reduction measure in 1993. Receipts 

from it were retained in the General Fund until 1997 legislation provided for their transfer to 

the Highway Trust Fund. 

eys received in a given fiscal year are apportioned to the States in 

the following fiscal year. 

TITLE VII—MISCELLANEOUS

Overflights in Grand Canyon National Park. The conference 

report makes amendments to a Senate provision on aircraft noise 

abatement at Grand Canyon National Park (GCNP). The provision 

establishes standards to be used by the National Park Service 

(NPS) in restoring natural quiet at GCNP, defines the term ‘‘substantial restoration of natural quiet’’ for the park, and directs the 

NPS to take measures that promote adoption of quiet technology 

aircraft at GCNP. 

Commercial air tour operations. The conference report amends 

a Senate provision for commercial air tour operations at national 

parks. The report modifies existing statutory authority to clarify 

the conditions under which the Director of the NPS may deny an 

application to begin or expand commercial air tour operations without developing an air tour management plan at Crater Lake National Park and Great Smoky Mountains National Park only. 

PART I—EXTENSION OF HIGHWAY TRUST FUND 

EXPENDITURE AUTHORITY AND RELATED TAXES 

A. Extension of Highway Trust Fund Expenditure Authority and 

Extension of Highway-Related Taxes 

(secs. 141 and 142 of the House bill, secs. 40101 and 40102 of the 

Senate amendment, secs. 40101 and 40102 of the conference 

agreement, and secs. 4041, 4051, 4071, 4081, 4221, 4481, 4483, 

6412, 9503, 9504, and 9508 of the Code) 1

PRESENT LAW HIGHWAY TRUST FUND EXCISE TAXES

In general 

Six separate excise taxes are imposed to finance the Federal 

Highway Trust Fund program. Three of these taxes are imposed on 

highway motor fuels. The remaining three are a retail sales tax on 

heavy highway vehicles, a manufacturers’ excise tax on heavy vehicle tires, and an annual use tax on heavy vehicles. A substantial 

majority of the revenues produced by the Highway Trust Fund excise taxes are derived from the taxes on motor fuels. The annual 

use tax on heavy vehicles expires October 1, 2013. Except for 4.3 

cents per gallon of the Highway Trust Fund fuels tax rates, the remaining taxes are scheduled to expire after June 30, 2012. The 4.3- 

cents-per-gallon portion of the fuels tax rates is permanent.2 The 

six taxes are summarized below. 


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3Secs. 4081(a)(2)(A)(i), 4081(a)(2)(A)(iii), 4041(a)(2), 4041(a)(3), and 4041(m). Some of these 

fuels also are subject to an additional 0.1-cent-per-gallon excise tax to fund the Leaking Underground Storage Tank Trust Fund (secs. 4041(d) and 4081(a)(2)(B)). 5Sec. 4051. 

6Sec. 4071. 

7Sec. 4481. 

8Sec. 4482(c)(4) and (d). 

9Sec. 9503. The Highway Trust Fund statutory provisions were placed in the Internal Revenue Code in 1982. 10Sec. 9503(e)(1). 

Highway motor fuels taxes 

The Highway Trust Fund motor fuels tax rates are as follows: 3

Gasoline ...................................................................................................................................... 18.3 cents per gallon 

Diesel fuel and kerosene ............................................................................................................ 24.3 cents per gallon 

Alternative fuels ......................................................................................................................... 18.3 or 24.3 cents per gallon generally 4

4 See secs. 4041(a)(2), 4041(a)(3), and 4041(m). 

Non-fuel highway trust fund excise taxes 

In addition to the highway motor fuels excise tax revenues, the 

Highway Trust Fund receives revenues produced by three excise 

taxes imposed exclusively on heavy highway vehicles or tires. 

These taxes are: 

1. A 12-percent excise tax imposed on the first retail sale of 

heavy highway vehicles, tractors, and trailers (generally, trucks 

having a gross vehicle weight in excess of 33,000 pounds and trailers having such a weight in excess of 26,000 pounds); 5

2. An excise tax imposed on highway tires with a rated load 

capacity exceeding 3,500 pounds, generally at a rate of 0.945 cents 

per 10 pounds of excess; 6 and 

3. An annual use tax imposed on highway vehicles having a 

taxable gross weight of 55,000 pounds or more.7 (The maximum 

rate for this tax is $550 per year, imposed on vehicles having a taxable gross weight over 75,000 pounds.) 

The taxable year for the annual use tax is from July 1st 

through June 30th of the following year. For the period July 1, 

2013, through September 30, 2013, the amount of the annual use 

tax is reduced by 75 percent.8

PRESENT LAW HIGHWAY TRUST FUND EXPENDITURE PROVISIONS

In general 

Under present law, revenues from the highway excise taxes, as 

imposed through June 30, 2012, generally are dedicated to the 

Highway Trust Fund. Dedication of excise tax revenues to the 

Highway Trust Fund and expenditures from the Highway Trust 

Fund are governed by the Code.9 The Code authorizes expenditures 

(subject to appropriations) from the Highway Trust Fund through 

June 30, 2012, for the purposes provided in authorizing legislation, 

as such legislation was in effect on the date of enactment of the 

Surface Transportation Extension Act of 2012. 

Highway Trust Fund expenditure purposes 

The Highway Trust Fund has a separate account for mass 

transit, the Mass Transit Account.10 The Highway Trust Fund and 


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11The authorizing Acts that currently are referenced in the Highway Trust Fund provisions 

of the Code are: the Highway Revenue Act of 1956; Titles I and II of the Surface Transportation 

Assistance Act of 1982; the Surface Transportation and Uniform Relocation Act of 1987; the 

Intermodal Surface Transportation Efficiency Act of 1991; the Transportation Equity Act for the 

21st Century, the Surface Transportation Extension Act of 2003, 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; the Surface Transportation Extension Act of 

2004, Part IV; the Surface Transportation Extension Act of 2004, Part V; the Safe, Accountable, 

Flexible, Efficient Transportation Equity Act: A Legacy for Users; the SAFETEA–LU Technical 

Corrections Act of 2008; the Surface Transportation Extension Act of 2010; the Surface Transportation Extension Act of 2010, Part II; the Surface Transportation Extension Act of 2011; the 

Surface Transportation Extension Act of 2011, Part II, and the Surface Transportation Extension Act of 2012. 12Sec. 9503(b)(1). 13The provision also replaces cross-references to the Surface Transportation Extension Act of 

2011, Part II, with MAP–21, and replaces April 1, 2012 references with October 1, 2013 in the 

Code provisions governing the Leaking Underground Storage Tank Trust Fund, and the Sport 

Fish Restoration and Boating Trust Fund. 

the Mass Transit Account are funding sources for specific programs. 

Highway Trust Fund expenditure purposes have been revised 

with each authorization Act enacted since establishment of the 

Highway Trust Fund in 1956. In general, expenditures authorized 

under those Acts (as the Acts were in effect on the date of enactment of the most recent such authorizing Act) are specified by the 

Code as Highway Trust Fund expenditure purposes.11 The Code 

provides that the authority to make expenditures from the Highway Trust Fund expires after June 30, 2012. Thus, no Highway 

Trust Fund expenditures may occur after June 30, 2012, without 

an amendment to the Code. 

As noted above, section 9503 appropriates to the Highway 

Trust Fund amounts equivalent to the taxes received from the following: the taxes on diesel, gasoline, kerosene and special motor 

fuel, the tax on tires, the annual heavy vehicle use tax, and the tax 

on the retail sale of heavy trucks and trailers.12 Section 9601 provides that amounts appropriated to a trust fund pursuant to sections 9501 through 9511, are to be transferred at least monthly 

from the General Fund of the Treasury to such trust fund on the 

basis of estimates made by the Secretary of the Treasury of the 

amounts referred to in the Code section appropriating the amounts 

to such trust fund. The Code requires that proper adjustments be 

made in amounts subsequently transferred to the extent prior estimates were in excess of, or less than, the amounts required to be 

transferred. 

HOUSE BILL

Present-law expenditure authority and taxes are extended for 

an additional three months, through September 30, 2012. 

Effective date.—The provision is effective July 1, 2012. 

SENATE AMENDMENT

The expenditure authority for the Highway Trust Fund is extended through September 30, 2013. The Code provisions governing 

the purposes for which monies in the Highway Trust Fund may be 

spent are updated to include the reauthorization bill, Moving 

Ahead for Progress for the 21st Century (MAP–21).13

The provision extends the motor fuel taxes, and all three nonfuel excise taxes at their current rates through September 30, 


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14The Leaking Underground Storage Tank Trust Fund financing rate of 0.1 cent per gallon 

also is extended through September 30, 2015. 15The Leaking Underground Storage Tank Trust Fund financing rate also is extended 

through September 30, 2016. The provision also corrects a potential drafting ambiguity regarding the taxable period as reflected in prior legislation. The provision is effective as if included 

in section 142 of the Surface Transportation Extension Act of 2011, Part II. 

2015.14 The provision resolves the projected deficit in the Highway 

Trust Fund, assures a cushion of $2.8 billion in each account of the 

Highway Trust Fund, and creates a solvency account available for 

use by either highways or mass transit. Specifically, the Secretary 

of the Treasury is to transfer the excess of (1) any amount appropriated to the Highway Trust Fund before October 1, 2013, by reason of the provisions of this bill, over (2) the amount necessary to 

meet the required expenditures from the Highway Trust Fund as 

authorized in section 9503(c) of the Code (which provides expenditure authority from the Highway Trust Fund) for the period ending 

before October 1, 2013. Amounts in the solvency account are available for transfers to the Highway Account and the Mass Transit 

Account in such amounts as determined necessary by the Secretary 

to ensure that each account has a surplus balance of $2.8 billion 

on September 30, 2013. The solvency account terminates on September 30, 2013 and any remainder in the solvency account remains in the Highway Trust Fund. The Committee expects that the 

Secretary of the Treasury will consult with the Secretary of Transportation in making determinations concerning amounts necessary 

to meet required expenditures and amounts necessary to ensure 

the cushion of $2.8 billion. 

Effective date.—The provision is effective on April 1, 2012. 

CONFERENCE AGREEMENT

The conference agreement provides for expenditure authority 

through September 30, 2014. The Code provisions governing the 

purposes for which monies in the Highway Trust Fund may be 

spent are updated to include the conference agreement bill, MAP– 

21. Cross-references to the reauthorization bill in the Code provisions governing the Sport Fish Restoration and Boating Trust Fund 

are also updated to include the conference agreement bill. In general, the provision extends the taxes dedicated to the Highway 

Trust Fund at their present law rates through September 30, 2016, 

and for the heavy vehicle use tax, through September 30, 2017.15

Effective date.—The provision is effective July 1, 2012. 

PART II—REVENUE PROVISIONS 

A. Leaking Underground Storage Tank Trust Fund 

(secs. 40301 and 40302 of the Senate amendment, sec. 40201 of the 

conference agreement and secs. 9503 and 9508 of the Code) 

PRESENT LAW

Leaking Underground Storage Tank Trust Fund financing rate 

Fuels of a type subject to other trust fund excise taxes generally are subject to an add-on excise tax of 0.1-cent-per-gallon to 

fund the Leaking Underground Storage Tank (‘‘LUST’’) Trust 


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16Secs. 4041, 4042, and 4081. 17For Federal budget scorekeeping purposes, the LUST Trust Fund tax, like other excise 

taxes dedicated to trust funds, is assumed to be permanent. 18Pub. L. No. 109–58. 

Fund.16 For example, the LUST excise tax applies to gasoline, diesel fuel, kerosene, and most alternative fuels subject to highway 

and aviation fuels excise taxes, and to fuels subject to the inland 

waterways fuel excise tax. This excise tax is imposed on both uses 

and parties subject to the other taxes, and to situations (other than 

export) in which the fuel otherwise is tax-exempt. For example, offhighway business use of gasoline and off-highway use of diesel fuel 

and kerosene generally are exempt from highway motor fuels excise tax. Similarly, States and local governments and certain other 

parties are exempt from such tax. Nonetheless, all such uses and 

parties are subject to the 0.1-cent-per-gallon LUST excise tax. 

Liquefied natural gas, compressed natural gas, and liquefied 

petroleum gas are exempt from the LUST tax. Additionally, methanol and ethanol fuels produced from coal (including peat) are 

taxed at a reduced rate of 0.05 cents per gallon. 

The LUST tax is scheduled to expire after June 30, 2012.17

Overview of Leaking Underground Storage Tank Trust Fund expenditure provisions 

Amounts in the LUST Trust Fund are available, as provided 

in appropriations Acts, for purposes of making expenditures to 

carry out sections 9003(h)–(j), 9004(f), 9005(c), and 9010–9013 of 

the Solid Waste Disposal Act as in effect on the date of enactment 

of Public Law 109–168. Any claim filed against the LUST Trust 

Fund may be paid only out of such fund, and the liability of the 

United States for claims is limited to the amount in the fund. 

The monies in the LUST Trust Fund are used to pay expenses 

incurred by the Environmental Protection Agency (the ‘‘EPA’’) and 

the States for preventing, detecting, and cleaning up leaks from petroleum underground storage tanks, as well as programs to evaluate the compatibility of fuel storage tanks with alternative fuels, 

MTBE additives, and ethanol and biodiesel blends. 

The EPA makes grants to States to implement the program, 

and States use cleanup funds primarily to oversee and enforce corrective actions by responsible parties. States and EPA also use 

cleanup funds to conduct corrective actions where no responsible 

party has been identified, where a responsible party fails to comply 

with a cleanup order, in the event of an emergency, and to take 

cost recovery actions against parties. In 2005, Congress authorized 

the EPA and States to use trust fund monies for non-cleanup purposes as well, specifically for administration and enforcement of the 

leak prevention requirements of the UST program.18

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision transfers $3 billion from the LUST Trust Fund 

to the Highway Trust Fund. The provision also provides that 0.033 


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19 As noted above, the Leaking Underground Storage Tank Trust Fund financing rate of 0.1 

cent per gallon is also extended through September 30, 2015. 20Sec. 412. A number of exceptions to the minimum funding rules apply. For example, governmental plans (within the meaning of section 414(d) and church plans (within the meaning of 

section 414(e)) are generally not subject to the minimum funding rules. Under section 4971, an 

excise tax applies to an employer maintaining a single-employer plan if the minimum funding 

requirements are not satisfied. 21Sec. 302 of ERISA. 22Pub. L. No. 109–280. The PPA minimum funding rules for single-employer plans are generally effective for plan years beginning after December 31, 2007. Delayed effective dates apply 

to single-employer plans sponsored by certain large defense contractors, multiple-employer plans 

of some rural cooperatives, eligible charity plans, and single-employer plans affected by settlement agreements with the Pension Benefit Guaranty Corporation. Subsequent changes to the 

single-employer plan and multiemployer plan funding rules (including temporary funding relief) 

were made by the Worker, Retiree, and Employer Recovery Act of 2008 (‘‘WRERA’’), Pub. L. No. 

110–458, and the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief 

Act of 2010 (‘‘PRA 2010’’), Public Law 111–192. 23The value of plan assets is generally reduced by any prefunding balance or funding standard carryover balance in determining minimum required contributions, including for this purpose. A prefunding balance results from contributions to a plan that exceed the minimum required contributions. A funding standard carryover balance results from a positive balance in 

cent of the 0.1 cent LUST Trust Fund financing rate is dedicated 

to the Highway Trust Fund.19

Effective date.—The provision is effective on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement transfers $2.4 billion from the LUST 

Trust Fund to the Highway Account of the Highway Trust Fund. 

The conference agreement does not include the Senate amendment provision to transfer 0.033 cent of the 0.1 cent LUST Trust 

Fund financing rate to the Highway Trust Fund. 

Effective date.—The provision is effective on the date of enactment. 

B. Pension Funding Stabilization 

(sec. 40312 of the Senate amendment, sec. 40211 of the conference 

agreement, Code sec. 430, and ERISA secs. 101(f) and 303) 

PRESENT LAW

Minimum funding rules 

Defined benefit plans generally are subject to minimum funding rules that require the sponsoring employer generally to make 

a contribution for each plan year to fund plan benefits.20 Parallel 

rules apply under the Employee Retirement Income Security Act of 

1974 (‘‘ERISA’’), which is generally in the jurisdiction of the Department of Labor.21 The minimum funding rules for single-employer defined benefit plans were substantially revised by the Pension Protection Act of 2006 (‘‘PPA’’).22

Minimum required contributions 

In general 

The minimum required contribution for a plan year for a single-employer defined benefit plan generally depends on a comparison of the value of the plan’s assets, reduced by any prefunding 

balance or funding standard carryover balance (‘‘net value of plan 

assets’’),23 with the plan’s funding target and target normal cost. 


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the funding standard account that applied under the funding requirements in effect before PPA. 

Subject to certain conditions, a prefunding balance or funding standard carryover balance may 

be credited against the minimum required contribution for a year, reducing the amount that 

must be contributed. 24 If the plan has obtained a waiver of the minimum required contribution (a funding waiver) 

within the past five years, the minimum required contribution also includes the related waiver 

amortization charge, that is, the annual installment needed to amortize the waived amount in 

level installments over the five years following the year of the waiver. 25 If the value of plan assets, reduced only by any prefunding balance if the employer elects 

to apply the prefunding balance against the required contribution for the plan year, is at least 

equal to the plan’s funding target, no shortfall amortization base is established for the year. 26 Under PRA 2010, employers were permitted to elect to use one of two alternative extended 

amortization schedules for up to two ‘‘eligible’’ plan years during the period 2008–2011. The use 

of an extended amortization schedule has the effect of reducing the amount of the shortfall amortization installments attributable to the shortfall amortization base for the eligible plan year. 

However, the shortfall amortization installments attributable to an eligible plan year may be 

increased by an additional amount, an ‘‘installment acceleration amount,’’ in the case of employee compensation exceeding $1 million, extraordinary dividends, or stock redemptions within 

a certain period of the eligible plan year. 

The plan’s funding target for a plan year is the present value of 

all benefits accrued or earned as of the beginning of the plan year. 

A plan’s target normal cost for a plan year is generally the present 

value of benefits expected to accrue or to be earned during the plan 

year. 

If the net value of plan assets is less than the plan’s funding 

target, so that the plan has a funding shortfall (discussed further 

below), the minimum required contribution is the sum of the plan’s 

target normal cost and the shortfall amortization charge for the 

plan year (determined as described below).24 If the net value of 

plan assets is equal to or exceeds the plan’s funding target, the 

minimum required contribution is the plan’s target normal cost, reduced by the amount, if any, by which the net value of plan assets 

exceeds the plan’s funding target. 

Shortfall amortization charge 

The shortfall amortization charge for a plan year is the sum 

of the annual shortfall amortization installments attributable to 

the shortfall bases for that plan year and the six previous plan 

years. Generally, if a plan has a funding shortfall for the plan year, 

a shortfall amortization base must be established for the plan 

year.25 A plan’s funding shortfall is the amount by which the plan’s 

funding target exceeds the net value of plan assets. The shortfall 

amortization base for a plan year is: (1) the plan’s funding shortfall, minus (2) the present value, determined using the segment interest rates (discussed below), of the aggregate total of the shortfall 

amortization installments that have been determined for the plan 

year and any succeeding plan year with respect to any shortfall 

amortization bases for the six previous plan years. The shortfall 

amortization base is amortized in level annual installments (‘‘shortfall amortization installments’’) over a seven-year period beginning 

with the current plan year and using the segment interest rates 

(discussed below).26

The shortfall amortization base for a plan year may be positive 

or negative, depending on whether the present value of remaining 

installments with respect to amortization bases for previous years 

is more or less than the plan’s funding shortfall. If the shortfall 

amortization base is positive (that is, the funding shortfall exceeds 

the present value of the remaining installments), the related 

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27 Any amortization base relating to a funding waiver for a previous year is also eliminated. 

ortization base is negative, the related shortfall amortization installments are negative. The positive and negative shortfall amortization installments for a particular plan year are netted when adding them up in determining the shortfall amortization charge for 

the plan year, but the resulting shortfall amortization charge cannot be less than zero (i.e., negative amortization installments may 

not offset normal cost). 

If the net value of plan assets for a plan year is at least equal 

to the plan’s funding target for the year, so the plan has no funding 

shortfall, any shortfall amortization bases and related shortfall amortization installments are eliminated.27 As indicated above, if the 

net value of plan assets exceeds the plan’s funding target, the excess is applied against target normal cost in determining the minimum required contribution. 

Interest rate used to determine target normal cost and funding 

target 

The minimum funding rules for single-employer plans specify 

the interest rates and other actuarial assumptions that must be 

used in determining the present value of benefits for purposes of 

a plan’s target normal cost and funding target. 

Present value is determined using three interest rates (‘‘segment’’ rates), each of which applies to benefit payments expected 

to be made from the plan during a certain period. The first segment rate applies to benefits reasonably determined to be payable 

during the five-year period beginning on the first day of the plan 

year; the second segment rate applies to benefits reasonably determined to be payable during the 15-year period following the initial 

five-year period; and the third segment rate applies to benefits reasonably determined to be payable at the end of the 15-year period. 

Each segment rate is a single interest rate determined monthly by 

the Secretary of the Treasury (‘‘Secretary’’) on the basis of a corporate bond yield curve, taking into account only the portion of the 

yield curve based on corporate bonds maturing during the particular segment rate period. The corporate bond yield curve used 

for this purpose reflects the average, for the 24-month period ending with the preceding month, of yields on investment grade corporate bonds with varying maturities and that are in the top three 

quality levels available. The Internal Revenue Service (IRS) publishes the segment rates each month. 

The present value of liabilities under a plan is determined 

using the segment rates for the ‘‘applicable month’’ for the plan 

year. The applicable month is the month that includes the plan’s 

valuation date for the plan year, or, at the election of the employer, 

any of the four months preceding the month that includes the valuation date. 

Solely for purposes of determining minimum required contributions, in lieu of the segment rates described above, an employer 

may elect to use interest rates on a yield curve based on the yields 

on investment grade corporate bonds for the month preceding the 

month in which the plan year begins (i.e., without regard to the 24- 

month averaging described above) (‘‘monthly yield curve’’). If an 


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621 

28 If a plan is in at-risk status, under section 409A(b)(3), limitations apply on the employer’s 

ability to set aside assets to provide benefits under a nonqualified deferred compensation plan. 29 A similar test applies in order for an employer to be permitted to apply a prefunding balance against its required contribution, that is, for the preceding year, the ratio of the value of 

plan assets (reduced by any prefunding balance) must be at least 80 percent of the plan’s funding target (determined without regard to the at-risk rules). 30 ERISA sec. 4010. 31 Code sec. 436 and ERISA sec. 206(g). 32 Code sec. 411(d)(6) and ERISA sec. 204(g). 

election to use a monthly yield curve is made, it cannot be revoked 

without IRS approval. 

Use of segment rates for other purposes 

In general 

In addition to being used to determine a plan’s funding target 

and target normal cost, the segment rates are used also for other 

purposes, either directly because the segment rates themselves are 

specifically cross-referenced or indirectly because funding target, 

target normal cost, or some other concept, such as funding target 

attainment percentage (discussed below) in which funding target or 

target normal cost is an element, is cross-referenced elsewhere. 

Funding target attainment percentage 

A plan’s funding target attainment percentage for a plan year 

is the ratio, expressed as a percentage, that the net value of plan 

assets bears to the plan’s funding target for the year. Special rules 

may apply to a plan if its funding target attainment percentage is 

below a certain level. For example, funding target attainment percentage is used to determine whether a plan is in ‘‘at-risk’’ status, 

so that special actuarial assumptions (‘‘at-risk assumptions’’) must 

be used in determining the plan’s funding target and target normal 

cost.28 A plan is in at risk status for a plan year if, for the preceding year: (1) the plan’s funding target attainment percentage, 

determined without regard to the at-risk assumptions, was less 

than 80 percent, and (2) the plan’s funding target attainment percentage, determined using the at-risk assumptions (without regard 

to whether the plan was in at-risk status for the preceding year), 

was less than 70 percent.29 In addition, special reporting to the 

Pension Benefit Guaranty Corporation (‘‘PBGC’’) may be required 

if a plan’s funding target attainment percentage is less than 80 

percent.30

Restrictions on benefit increases, certain types of benefits and 

benefit accruals (collectively referred to as ‘‘benefit restrictions’’) 

may apply to a plan if the plan’s adjusted funding target attainment percentage is below a certain level.31 Adjusted funding target 

attainment percentage is determined in the same way as funding 

target attainment percentage, except that the net value of plan assets and the plan’s funding target are both increased by the aggregate amount of purchases of annuities for employees, other than 

highly compensated employees, made by the plan during the two 

preceding plan years. Although anti-cutback rules generally prohibit reductions in benefits that have already been earned under a 

plan,32 reductions required to comply with the benefit restrictions 

are permitted. 


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33 Code sec. 417(e) and ERISA sec. 205(g). 34Sec. 415(b). 35Sec. 404. 36Sec. 420. Under present law, a qualified transfer is not permitted after December 31, 2013. 37 ERISA sec. 4006. 38Flat-rate premiums apply also to multiemployer defined benefit plans at a rate of $9.00 per 

participant. Single-employer and multiemployer flat-rate premium rates are indexed for inflation. The rate of variable-rate premiums is not indexed. 

Minimum and maximum lump sums, limits on deductible 

contributions, retiree health 

Defined benefit plans commonly allow a participant to choose 

among various forms of benefit offered under the plan, such as a 

lump-sum distribution. These optional forms of benefit generally 

must be actuarially equivalent to the life annuity benefit payable 

to the participant at normal retirement age. For certain forms of 

benefit, such as lump sums, the benefit amount cannot be less than 

the amount determined using the segment rates and a specified 

mortality table.33 For this purpose, however, the segment rates are 

determined on a monthly basis, rather than using a 24-month average of corporate bond rates. 

The amount of benefits under a defined benefit plan are subject to certain limits.34 The segment rates used in determining 

minimum lump sums (and certain other forms of benefit) are also 

used in applying the benefit limits to lump sums (and the certain 

other forms of benefit). 

Limits apply to the amount of plan contributions that may be 

deducted by an employer.35 In the case of a single-employer defined 

benefit plan, the plan’s funding target and target normal cost, determined using the segment rates that apply for funding purposes, 

are taken into account in calculating the limit on deductible contributions. 

Subject to various conditions, a qualified transfer of excess assets of a single-employer defined benefit plan to a retiree medical 

account within the plan may be made in order to fund retiree 

health benefits.36 For this purpose, excess assets generally means 

the excess, if any, of the value of the plan’s assets over 125 percent 

of the sum of the plan’s funding target and target normal cost for 

the plan year. 

PBGC premiums and 4010 reporting 

PBGC premiums apply with respect to defined benefit plans 

covered by ERISA.37 In the case of a single-employer defined benefit plan, flat-rate premiums apply at a rate of $35.00 per participant for 2012.38 If a single-employer defined benefit plan has unfunded vested benefits, variable-rate premiums also apply at a rate 

of $9 per $1,000 of unfunded vested benefits divided by the number 

of participants. For purposes of determining variable-rate premiums, unfunded vested benefits are equal to the excess (if any) of 

(1) the plan’s funding target for the year determined as under the 

minimum funding rules, but taking into account only vested benefits, over (2) the fair market value of plan assets. In determining 

the plan’s funding target for this purpose, the interest rates used 

are segment rates determined as under the minimum funding 


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623 

39 ERISA sec. 4010. 40 ERISA sec. 101(f). In the case of a multiemployer plan, the notice must also be sent to each 

employer that has an obligation to contribute under the plan; 

rules, but determined on a monthly basis, rather than using a 24- 

month average of corporate bond rates. 

In certain circumstances, the contributing sponsor of a singleemployer plan defined benefit pension plan covered by the PBGC 

(and members of the contributing sponsor’s controlled group) must 

provide certain information to the PBGC (referred to as ‘‘section 

4010 reporting’’).39 This information includes actuarial information 

with respect to single-employer plans maintained by the contributing sponsor (and controlled group members). Section 4010 reporting is required if: (1) the funding target attainment percentage at 

the end of the preceding plan year of a plan maintained by the contributing sponsor or any member of its controlled group is less than 

80 percent; (2) the conditions for imposition of a lien (i.e., required 

contributions totaling more than $1 million have not been made) 

have occurred with respect to a plan maintained by the contributing sponsor or any member of its controlled group; or (3) minimum funding waivers in excess of $1 million have been granted 

with respect to a plan maintained by the contributing sponsor or 

any member of its controlled group and any portion of the waived 

amount is still outstanding. 

Annual funding notice 

The plan administrator of a defined benefit plan must provide 

an annual funding notice to: (1) each participant and beneficiary; 

(2) each labor organization representing such participants or beneficiaries; and (4) the PBGC.40

In addition to the information required to be provided in all 

funding notices, certain information must be provided in the case 

of a single-employer defined benefit plan, including: 

a statement as to whether the plan’s funding target attainment 

percentage (as defined under the minimum funding rules) for the 

plan year to which the notice relates and the two preceding plan 

years, is at least 100 percent (and, if not, the actual percentages); 

and 

a statement of (a) the total assets (separately stating any funding standard carryover or prefunding balance) and the plan’s liabilities for the plan year and the two preceding years, determined in 

the same manner as under the funding rules, and (b) the value of 

the plan’s assets and liabilities as of the last day of the plan year 

to which the notice relates, determined using fair market value and 

the interest rate used in determining variable rate premiums. 

A funding notice may also include any additional information 

that the plan administrator elects to include to the extent not inconsistent with regulations. The notice must be written so as to be 

understood by the average plan participant. As required under 

PPA, the Secretary of Labor has issued a model funding notice that 

can be used to satisfy the notice requirement. 

HOUSE BILL

No provision. 


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624 

41The provision does not provide a specific exception for determining maximum lump sum 

benefits. However, the exception for minimum lump sum benefits applies by cross-reference. 

SENATE AMENDMENT

The Senate amendment revises the rules for determining the 

segment rates under the single-employer plan funding rules by adjusting a segment rate if the rate determined under the regular 

rules is outside a specified range of the average of the segment 

rates for the preceding 25-year period (‘‘average’’ segment rates). In 

particular, if a segment rate determined for an applicable month 

under the regular rules is less than the applicable minimum percentage, the segment rate is adjusted upward to match that percentage. If a segment rate determined for an applicable month 

under the regular rules is more than the applicable maximum percentage, the segment rate is adjusted downward to match that percentage. For this purpose, the average segment rate is the average 

of the segment rates determined under the regular rules for the 25- 

year period ending September 30 of the calendar year preceding 

the calendar year in which the plan year begins. The Secretary is 

to determine average segment rates on an annual basis and may 

prescribe equivalent rates for any years in the 25-year period for 

which segment rates determined under the regular rules are not 

available. The Secretary is directed to publish the average segment 

rates each month. 

The applicable minimum percentage and the applicable maximum percentage depend on the calendar year in which the plan 

year begins as shown by the following table: 

If the calendar year is: 

The applicable 

minimum 

percentage is: 

The applicable 

maximum 

percentage is: 

2012 ....................................................... 90 percent ............................................. 110 percent 

2013 ....................................................... 85 percent ............................................. 115 percent 

2014 ....................................................... 80 percent ............................................. 120 percent 

2015 ....................................................... 75 percent ............................................. 125 percent 

2016 or later .......................................... 70 percent ............................................. 130 percent 

Thus, for example, if the first segment rate determined for an 

applicable month under the regular rules for a plan year beginning 

in 2012 is less than 90 percent of the average of the first segment 

rates determined under the regular rules for the 25-year period 

ending September 30, 2011, the segment rate is adjusted to 90 percent of the 25-year average. 

The change in the method of determining segment rates generally applies for the purposes for which segment rates are used 

under present law, except for purposes of determining minimum 

and maximum lump-sum benefits,41 limits on deductible contributions to single-employer defined benefit plans, and PBGC variablerate premiums. 

Effective date.—The provision in the Senate Amendment is 

generally effective for plan years beginning after December 31, 

2011. Under a special rule, an employer may elect, for any plan 

year beginning on or before the date of enactment and solely for 

purposes of determining the plan’s adjusted funding target attainment percentage (used in applying the benefit restrictions) for that 

year, not to have the provision apply. A plan is not treated as failVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00630 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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42 The provision does not provide a specific exception for determining maximum lump sum 

benefits. However, the exception for minimum lump sum benefits applies by cross-reference. 43 Another provision of the conference agreement extends to December 31, 2021, the ability 

to make a qualified transfer. In addition, another provision of the conference agreement allows 

qualified transfers to be made to provide group-term life insurance benefits. 44 Another provision of the conference agreement increases PBGC flat-rate and variable-rate 

premiums. 

ing to meet the requirements of the anti-cutback rules solely by 

reason of an election under the special rule. 

CONFERENCE AGREEMENT

The conference agreement follows the Senate amendment with 

several modifications. 

Average segment rates 

The change in the method of determining segment rates generally applies for the purposes for which segment rates are used 

under present law, except for purposes of minimum and maximum 

lump-sum benefits,42 limits on deductible contributions to singleemployer defined benefit plans, qualified transfers of excess pension assets to retiree medical accounts,43 PBGC variable-rate premiums,44 and 4010 reporting to the PBGC. 

The special effective date rule is modified under the conference 

agreement so that an employer may elect, for any plan year beginning before January 1, 2013, not to have the provision apply either 

(1) for all purposes for which the provision would otherwise apply, 

or (2) solely for purposes of determining the plan’s adjusted funding 

target attainment percentage (used in applying the benefit restrictions) for that year. A plan is not treated as failing to meet the requirements of the anti-cutback rules solely by reason of an election 

under the special rule. 

Under the conference agreement, if, as of the date of enactment, an employer election is in effect to use a monthly yield curve 

in determining minimum required contributions, rather than segment rates, the employer may revoke the election (and use segment 

rates, as modified by the conference agreement provision) without 

obtaining IRS approval. The revocation must be made at any time 

before the date that is one year after the date of enactment, and 

the revocation will be effective for the first plan year to which the 

amendments made by the provision apply and all subsequent plan 

years. The employer is not precluded from making a subsequent 

election to use a monthly yield curve in determining minimum required contributions in accordance with present law. 

Annual funding notice 

The conference agreement requires additional information to 

be included in the annual funding notice in the case of an applicable plan year. For this purpose, an applicable plan year is any plan 

year beginning after December 31, 2011, and before January 1, 

2015, for which (1) the plan’s funding target, determined using segment rates as adjusted to reflect average segment rates (‘‘adjusted’’ 

segment rates), is less than 95 percent of the funding target determined without regard to adjusted segment rates (that is, determined as under present law), (2) the plan has a funding shortfall, 

determined without regard to adjusted segment rates, greater than 


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626 

45 In addition, a reversion may occur only if the terms of the plan so provide. 

$500,000 and (3) the plan had 50 or more participants on any day 

during the preceding plan year. 

The additional information that must be provided is: 

a statement that MAP–21 modified the method for determining 

the interest rates used to determine the actuarial value of benefits 

earned under the plan, providing for a 25-year average of interest 

rates to be taken into account in addition to a 2-year average; 

a statement that, as a result of MAP–21, the plan sponsor may 

contribute less money to the plan when interest rates are at historical lows, and 

a table showing, for the applicable plan year and each of the 

two preceding plan years, the plan’s funding target attainment percentage, funding shortfall, and the employer’s minimum required 

contribution, each determined both using adjusted segment rates 

and without regard to adjusted segment rates (that is, as under 

present law). In the case of a preceding plan year beginning before 

January 1, 2012, the plan’s funding target attainment percentage, 

funding shortfall, and the employer’s minimum required contribution provided are determined only without regard to adjusted segment rates (that is, as under present law). 

As under present law, a funding notice may also include any 

additional information that the plan administrator elects to include 

to the extent not inconsistent with regulations. For example, a 

funding notice may include a statement of the amount of the employer’s actual or planned contributions to the plan. 

The Secretary of Labor is directed to modify the model funding 

notice required so that the model includes the additional information in a prominent manner, for example, on a separate first page 

before the remainder of the notice. 

C. Transfer of Excess Pension Assets 

(secs. 40310 and 40311 of the Senate amendment, secs. 40241 and 

40242 of the conference agreement, and sec. 420 of the Code) 

PRESENT LAW

Defined benefit pension plan reversions 

Defined benefit plan assets generally may not revert to an employer prior to termination of the plan and satisfaction of all plan 

liabilities.45 Upon plan termination, the accrued benefits of all plan 

participants are required to be 100-percent vested. A reversion 

prior to plan termination may constitute a prohibited transaction 

and may result in plan disqualification. Any assets that revert to 

the employer upon plan termination are includible in the gross income of the employer and subject to an excise tax. The excise tax 

rate is 20 percent if the employer maintains a replacement plan or 

makes certain benefit increases in connection with the termination; 

if not, the excise tax rate is 50 percent. Medical benefits and life 

insurance benefits provided under a pension plan 


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46Sec. 401(h) and Treas. Reg. sec. 1.401–1(b). 47Treas. Reg. sec. 1.72–15(h). 48The Pension Protection Act of 2006 (‘‘PPA’’), Pub. L. No. 109–280, extended the application 

of the rules for qualified transfers to multiemployer plans with respect to transfers made in taxable years beginning after December 31, 2006. However, the rules for qualified future transfers 

and collectively bargained transfers do not apply to multiemployer plans. 49Sec. 420. 50The value of plan assets for this purpose is the lesser of fair market value or actuarial 

value. 

Retiree medical accounts 

A pension plan may provide medical benefits to retired employees through a separate account that is part of a defined benefit 

plan (‘‘retiree medical accounts’’).46 Medical benefits provided 

through a retiree medical account are generally not includible in 

the retired employee’s gross income.47

Transfers of excess pension assets 

In general 

A qualified transfer of excess assets of a defined benefit plan, 

including a multiemployer plan,48 to a retiree medical account 

within the plan may be made in order to fund retiree health benefits.49 A qualified transfer does not result in plan disqualification, 

is not a prohibited transaction, and is not treated as a reversion. 

Thus, transferred assets are not includible in the gross income of 

the employer and are not subject to the excise tax on reversions. 

No more than one qualified transfer may be made in any taxable 

year. No qualified transfer may be made after December 31, 2013. 

Excess assets generally means the excess, if any, of the value 

of the plan’s assets 50 over 125 percent of the sum of the plan’s 

funding target and target normal cost for the plan year. In addition, excess assets transferred in a qualified transfer may not exceed the amount reasonably estimated to be the amount that the 

employer will pay out of such account during the taxable year of 

the transfer for qualified current retiree health liabilities. No deduction is allowed to the employer for (1) a qualified transfer, or 

(2) the payment of qualified current retiree health liabilities out of 

transferred funds (and any income thereon). In addition, no deduction is allowed for amounts paid other than from transferred funds 

for qualified current retiree health liabilities to the extent such 

amounts are not greater than the excess of (1) the amount transferred (and any income thereon), over (2) qualified current retiree 

health liabilities paid out of transferred assets (and any income 

thereon). An employer may not contribute any amount to a health 

benefits account or welfare benefit fund with respect to qualified 

current retiree health liabilities for which transferred assets are required to be used. 

Transferred assets (and any income thereon) must be used to 

pay qualified current retiree health liabilities for the taxable year 

of the transfer. Transferred amounts generally must benefit pension plan participants, other than key employees, who are entitled 

upon retirement to receive retiree medical benefits through the separate account. Retiree health benefits of key employees may not be 

paid out of transferred assets. 

Amounts not used to pay qualified current retiree health liabilities for the taxable year of the transfer are to be returned to the 


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628 

51Pub. L. No. 93–406. 52 ERISA sec. 101(e). ERISA also provides that a qualified transfer is not a prohibited transaction under ERISA or a prohibited reversion. 53The rules for qualified transfers and collectively bargained transfers were added by the PPA 

and apply to transfers after the date of enactment (August 17, 2006). 

general assets of the plan. These amounts are not includible in the 

gross income of the employer, but are treated as an employer reversion and are subject to a 20-percent excise tax. 

In order for the transfer to be qualified, accrued retirement 

benefits under the pension plan generally must be 100-percent 

vested as if the plan terminated immediately before the transfer (or 

in the case of a participant who separated in the one-year period 

ending on the date of the transfer, immediately before the separation). 

In order for a transfer to be qualified, there is maintenance of 

effort requirement under which, the employer generally must maintain retiree health benefits at the same level for the taxable year 

of the transfer and the following four years. 

In addition, the Employee Retirement Income Security Act of 

1974 (‘‘ERISA’’) 51 provides that, at least 60 days before the date of 

a qualified transfer, the employer must notify the Secretary of 

Labor, the Secretary of the Treasury, employee representatives, 

and the plan administrator of the transfer, and the plan administrator must notify each plan participant and beneficiary of the 

transfer.52

Qualified future transfers and collectively bargained transfers 

If certain requirements are satisfied, transfers of excess pension assets under a single-employer plan to retiree medical accounts to fund the expected cost of retiree medical benefits are permitted for the current and future years (a ‘‘qualified future transfer’’) and such transfers are also allowed in the case of benefits provided under a collective bargaining agreement (a ‘‘collectively bargained transfer’’).53 Transfers must be made for at least a two-year 

period. An employer can elect to make a qualified future transfer 

or a collectively bargained transfer rather than a qualified transfer. 

A qualified future transfer or collectively bargained transfer must 

meet the requirements applicable to qualified transfers, except that 

the provision modifies the rules relating to: (1) the determination 

of excess pension assets; (2) the limitation on the amount transferred; and (3) the maintenance of effort requirement. The general 

sunset applicable to qualified transfer applies (i.e., no transfers can 

be made after December 31, 2013). 

Qualified future transfers and collectively bargained transfers 

can be made to the extent that plan assets exceed 120 percent of 

the sum of the plan’s funding target and the normal cost for the 

plan year. During the transfer period, the plan’s funded status 

must be maintained at the minimum level required to make transfers. If the minimum level is not maintained, the employer must 

make contributions to the plan to meet the minimum level or an 

amount required to meet the minimum level must be transferred 

from the health benefits account. The transfer period is the period 

not to exceed a total of ten consecutive taxable years beginning 


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629 

54Sec. 79. 55Treas. Reg. sec. 1.401–1(b). 56Secs. 72(m)(3) and 79(b)(3). 

with the taxable year of the transfer. As previously discussed, the 

period must be not less than two consecutive years. 

Employer provided group-term life insurance 

Group-term life insurance coverage provided under a policy 

carried by an employer is includible in the gross income of an employee (including a former employee) but only to the extent that 

the cost exceeds the sum of the cost of $50,000 of such insurance 

plus the amount, if any, paid by the employee toward the purchase 

of such insurance.54 Special rules apply for determining the cost of 

group-term life insurance that is includible in gross income under 

a discriminatory group-term life insurance plan. 

A pension plan may provide life insurance benefits for employees (including retirees) but only to the extent that the benefits are 

incidental to the retirement benefits provided under the plan.55

The cost of term life insurance provided through a pension plan is 

includible in the employee’s gross income.56

HOUSE BILL

No provision. 

SENATE AMENDMENT

Extension of existing provisions 

The provision allows qualified transfers, qualified future transfers, and collectively bargained transfers to retiree medical accounts to be made through December 31, 2021. No transfers are 

permitted after that date. 

Transfers to fund retiree group-term life insurance permitted 

The provision allows qualified transfers, qualified future transfers, and collectively bargained transfers to be made to fund the 

purchase of retiree group-term life insurance. The assets transferred for the purchase of group-term life insurance must be maintained in a separate account within the plan (‘‘retiree life insurance 

account’’), which must be separate both from the assets in the retiree medical account and from the other assets in the defined benefit plan. 

Under the provision, the general rule that the cost of groupterm life insurance coverage provided under a defined benefit plan 

is includable in gross income of the participant does not apply to 

group-term life insurance provided through a retiree life insurance 

account. Instead, the general rule for determining the amount of 

employer-provided group-term life insurance that is includible in 

gross income applies. However, group-term life insurance coverage 

is permitted to be provided through a retiree life insurance account 

only to the extent that it is not includible in gross income. Thus, 

generally, only group-term life insurance not in excess of $50,000 

may be purchased with such transferred assets. 

Generally, the present law rules for transfers of excess pension 

assets to retiree medical accounts to fund retiree health benefits 


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57Sec. 72(t). The early distribution tax also applies to distributions from section 403(b) plans 

and IRAs but does not apply to distributions from governmental section 457(b) plans. 

also apply to transfers to retiree life insurance accounts to fund retiree group-term life. However, generally, the rules are applied separately. Thus, for example, the one-transfer-a-year rule generally 

applies separately to transfers to retiree life insurance accounts 

and transfers to retiree medical accounts. Further, the maintenance of effort requirement for qualified transfers applies separately to life insurance benefits and health benefits. Similarly, for 

qualified future transfers and collectively bargained transfers for 

retiree group-term life insurance, the maintenance of effort and 

other special rules are applied separately to transfers to retiree life 

insurance accounts and retiree medical accounts. 

Reflecting the inherent differences between life insurance coverage and health coverage, certain rules are not applied to transfers to retiree life insurance accounts, such as the special rules allowing the employer to elect to determine the applicable employer 

cost for health coverage during the cost maintenance period separately for retirees eligible for Medicare and retirees not eligible for 

Medicare. However, a separate test is allowed for the cost of retiree 

group-term life insurance for retirees under age 65 and those retirees who have reached age 65. 

The provision makes other technical and conforming changes 

to the rules for transfers to fund retiree health benefits and removes certain obsolete (‘‘deadwood’’) rules. 

The same sunset applicable to qualified transfers, qualified future transfers, and collectively bargained transfers to retiree medical accounts applies to transfers to retiree life insurance accounts 

(i.e., no transfers can be made after December 31, 2021). 

Effective date.—The provision applies to transfers made after 

the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement includes the Senate amendment provision. 

D. Exception from Early Distribution Tax for Annuities Under 

Phased Retirement Program 

(sec. 100111 of conference agreement and sec. 72(t) of the Code) 

PRESENT LAW

The Code imposes an early distribution tax on distributions 

made from qualified retirement plans before an employee attains 

age 591⁄2.57 The tax is equal to 10 percent of the amount of the distribution that is includible in gross income. The 10-percent tax is 

in addition to the taxes that would otherwise be due on distribution. Certain exceptions to the early distribution tax apply including an exception for distributions after separation from service with 

the employer after attaining age 55, or in the form of substantially 

equal periodic payments from the qualified retirement plan commencing after separation from service at any age. However, there 


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58See the explanation for section 100111 of the Conference agreement for a description of the 

new Federal Phased Retirement Program. 

is no exception for annuity payments that commence before separating from service with the employer. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

No provision. 

CONFERENCE AGREEMENT

The Senate amendment and the Conference agreement include 

a new Federal Phased Retirement Program under which a Federal 

agency may allow a full-time retirement eligible employee to elect 

to enter phased retirement status in accordance with regulations 

issued by the Office of Personnel Management (OPM).58 During 

that status, generally, the employee’s work schedule is a percentage of a full time work schedule, and the employee receives a 

phased retirement annuity. At full-time retirement, the phased retiree is entitled to a composite retirement annuity that also includes the portion of the employee’s retirement annuity attributable to the reduced work schedule. The Conference agreement includes an exception to the early distribution tax for payments 

under a phased retirement annuity and a composite retirement annuity received by an employee participating in this new Federal 

Phased Retirement Program. 

Effective date.—The provision is effective on the effective date 

of implementing regulations issued by OPM implementing the Federal Phased Retirement Program. 

E. Additional Transfers to the Highway Trust Fund 

(sec. 40313 of the Senate amendment, sec. 40251 of the conference 

agreement, and sec. 9503 of the Code) 

PRESENT LAW

Public Law No. 111–46, an Act to restore funds to the Highway 

Trust Fund, provided that out of money in the Treasury not otherwise appropriated, $7 billion was appropriated to the Highway 

Trust Fund effective August 7, 2009. The Hiring Incentives to Restore Employment Act (the ‘‘HIRE Act’’) provided that out of money 

in the Treasury not otherwise appropriated, $14,700,000,000 is appropriated to the Highway Trust Fund and $4,800,000,000 is appropriated to the Mass Transit Account in the Highway Trust 

Fund. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision provides that out of money in the Treasury not 

otherwise appropriated, the following transfers are to be made from 


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632 

59Sec. 5701. 

the General Fund to the Highway Trust Fund: $2,183 million in FY 

2012, $2,277 million in FY 2013, and $510 million in FY 2014. 

Effective date.—The provision is effective on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement provides that out of money in the 

Treasury not otherwise appropriated, the following transfers are to 

be made from the General Fund to the Highway Trust Fund: 

FY 2013 FY 2014 

Highway Account ..................................................................................................................... $6.2 billion $10.4 billion 

Mass Transit Account .............................................................................................................. ........................ $2.2 billion 

Effective date.—The provision is effective on the date of enactment. 

F. Expand the Definition of a Tobacco Manufacturer to Include 

Businesses Making Available Roll-Your-Own Cigarette Machines 

for Consumer Use 

(sec. 100116 of the Senate amendment, section 100112 of the 

conference agreement, and sec. 5702(d) of the Code) 

PRESENT LAW

Tobacco products and cigarette papers and tubes manufactured 

in the United States or imported into the United States are subject 

to Federal excise tax at the following rates: 59

Cigars weighing not more than three pounds per thousand 

(‘‘small cigars’’) are taxed at the rate of $50.33 per thousand; 

Cigars weighing more than three pounds per thousand 

(‘‘large cigars’’) are taxed at the rate equal to 52.75 percent of 

the manufacturer’s or importer’s sales price but not more than 

40.26 cents per cigar; 

Cigarettes weighing not more than three pounds per thousand (‘‘small cigarettes’’) are taxed at the rate of $50.33 per 

thousand ($1.0066 per pack); 

Cigarettes weighing more than three pounds per thousand 

(‘‘large cigarettes’’) are taxed at the rate of $105.69 per thousand, except that, if they measure more than six and one-half 

inches in length, they are taxed at the rate applicable to small 

cigarettes, counting each two and three-quarter inches (or fraction thereof) of the length of each as one cigarette; 

Cigarette papers are taxed at the rate of 3.15 cents for 

each 50 papers or fractional part thereof, except that, if they 

measure more than six and one-half inches in length, they are 

taxable by counting each two and three-quarter inches (or fraction thereof) of the length of each as one cigarette paper; 

Cigarette tubes are taxed at the rate of 6.30 cents for each 

50 tubes or fractional part thereof, except that, if they measure 

more than six and one-half inches in length, they are taxable 


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by counting each two and three-quarter inches (or fraction 

thereof) of the length of each as one cigarette tube; 

Snuff is taxed at the rate of $1.51 per pound, and proportionately at that rate on all fractional parts of a pound; 

Chewing tobacco is taxed at the rate of 50.33 cents per 

pound, and proportionately at that rate on all fractional parts 

of a pound; 

Pipe tobacco is taxed at the rate of $2.8311 per pound, and 

proportionately at that rate on all fractional parts of a pound; 

and 

Roll-your-own tobacco is taxed at the rate of $24.78 per 

pound, and proportionately at that rate on all fractional parts 

of a pound. 

In general, the excise tax on tobacco products and cigarette papers and tubes manufactured in the United States comes into existence when the products are manufactured and is determined and 

payable when the tobacco products or cigarette papers and tubes 

are removed from the bonded premises of the manufacturer. ‘‘Tobacco products’’ means cigars, cigarettes, smokeless tobacco (snuff 

and chewing tobacco), pipe tobacco, and roll your own tobacco. 

Processed tobacco is regulated under the internal revenue laws but 

no excise tax is imposed. Tobacco products and cigarette papers 

and tubes may be exported from the United States without payment of tax. 

Manufacturers and importers of tobacco products or processed 

tobacco are subject to certain permitting, bonding, reporting, and 

record keeping requirements. ‘‘Manufacturer of tobacco products’’ 

means any person who manufactures cigars, cigarettes, smokeless 

tobacco, pipe tobacco, or roll-your-own tobacco. There is an exception for a person who produces these products for their own personal consumption or use. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision amends the definition of manufacturer of tobacco 

products to include any person who for commercial purposes makes 

available machines capable of making tobacco products for consumer use. This includes making a machine available for consumers to produce tobacco products for personal consumption or 

use. The addition of this provision is not intended to change the 

treatment of such machines under present law, or to make taxable 

the sale, at retail, for a consumer’s personal home use, a machine 

designed to produce tobacco only in personal use quantities, where 

the machine is not used on the retail premises. 

For purposes of imposing the tax liability, the person making 

the machine available for consumer use is deemed to be the person 

making the removal with respect to any tobacco products manufactured by the machine. 

Effective date.—The provision is effective for articles removed 

after the date of enactment. 


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60Sec. 265(a). 61See Rev. Proc. 72–18, 1972–1 C.B. 740. 62Sec. 265(b)(1). A ‘‘financial institution’’ is any person that (1) accepts deposits from the public in the ordinary course of such person’s trade or business and is subject to Federal or State 

supervision as a financial institution or (2) is a corporation described by section 585(a)(2). Sec. 

265(b)(5). 63Sec. 265(b)(3). 64Secs. 265(b)(3)(A), 291(a)(3) and 291(e)(1). 

CONFERENCE AGREEMENT

The conference agreement includes the Senate amendment 

with the following modification. The provision is modified to clarify 

that a person who sells a machine directly to a consumer at retail 

for the consumer’s personal home use is not a manufacturer of tobacco products under the provision if the machine is not used at 

a retail establishment and is designed to produce only personal use 

quantities. 

PART III—OTHER ITEMS 

A. Small Issuer Exception to Tax-Exempt Interest Expense 

Allocation Rules for Financial Institutions 

(sec. 40201 of the Senate amendment and sec. 265 of the Code) 

PRESENT LAW

Present law disallows a deduction for interest on indebtedness 

incurred or continued to purchase or carry obligations the interest 

on which is exempt from tax.60 In general, an interest deduction 

is disallowed only if the taxpayer has a purpose of using borrowed 

funds to purchase or carry tax-exempt obligations; a determination 

of the taxpayer’s purpose in borrowing funds is made based on all 

of the facts and circumstances.61

Financial institutions 

In the case of a financial institution, the Code generally disallows that portion of the taxpayer’s interest expense that is allocable to tax-exempt interest.62 The amount of interest that is disallowed is an amount which bears the same ratio to such interest 

expense as the taxpayer’s average adjusted bases of tax-exempt obligations acquired after August 7, 1986, bears to the average adjusted bases for all assets of the taxpayer. 

Exception for certain obligations of qualified small issuers 

The general rule in section 265(b), denying financial institutions’ interest expense deductions allocable to tax-exempt obligations, does not apply to ‘‘qualified tax-exempt obligations.’’ 63 Instead, as discussed in the next section, only 20 percent of the interest expense allocable to ‘‘qualified tax-exempt obligations’’ is disallowed.64 A ‘‘qualified tax-exempt obligation’’ is a tax-exempt obligation that is (1) issued after August 7, 1986, by a qualified small 

issuer, (2) not a private activity bond, and (3) designated by the 

issuer as qualifying for the exception from the general rule of section 265(b). 

A ‘‘qualified small issuer’’ is an issuer that reasonably anticipates that the amount of tax-exempt obligations that it will issue 


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65Sec. 265(b)(3)(C). 66Sec. 265(b)(3)(E). 67Sec. 265(b)(3)(F). 

during the calendar year will be $10 million or less.65 The Code 

specifies the circumstances under which an issuer and all subordinate entities are aggregated.66 For purposes of the $10 million limitation, an issuer and all entities that issue obligations on behalf of 

such issuer are treated as one issuer. All obligations issued by a 

subordinate entity are treated as being issued by the entity to 

which it is subordinate. An entity formed (or availed of) to avoid 

the $10 million limitation and all entities benefiting from the device are treated as one issuer. 

Composite issues (i.e., combined issues of bonds for different 

entities) qualify for the ‘‘qualified tax-exempt obligation’’ exception 

only if the requirements of the exception are met with respect to 

(1) the composite issue as a whole (determined by treating the composite issue as a single issue) and (2) each separate lot of obligations that is part of the issue (determined by treating each separate lot of obligations as a separate issue).67 Thus a composite 

issue may qualify for the exception only if the composite issue itself 

does not exceed $10 million, and if each issuer benefitting from the 

composite issue reasonably anticipates that it will not issue more 

than $10 million of tax-exempt obligations during the calendar 

year, including through the composite arrangement. 

Special rules providing modifications to qualified small 

issuer exception for certain issues in 2009 and 2010 

With respect to tax-exempt obligations issued during 2009 and 

2010, the special rules increased from $10 million to $30 million 

the annual limit for qualified small issuers. 

In addition, in the case of a ‘‘qualified financing issue’’ issued 

in 2009 or 2010, the special rules applied the $30 million annual 

volume limitation at the borrower level (rather than at the level of 

the pooled financing issuer). Thus, for the purpose of applying the 

requirements of the section 265(b)(3) qualified small issuer exception, the portion of the proceeds of a qualified financing issue that 

are loaned to a ‘‘qualified borrower’’ that participates in the issue 

were treated as a separate issue with respect to which the qualified 

borrower is deemed to be the issuer. 

A ‘‘qualified financing issue’’ was any composite, pooled, or 

other conduit financing issue the proceeds of which were used directly or indirectly to make or finance loans to one or more ultimate borrowers all of whom are qualified borrowers. A ‘‘qualified 

borrower’’ meant (1) a State or political subdivision of a State or 

(2) an organization described in section 501(c)(3) and exempt from 

tax under section 501(a). Thus, for example, a $100 million pooled 

financing issue that was issued in 2009 would qualify for the section 265(b)(3) exception if the proceeds of such issue were used to 

make four equal loans of $25 million to four qualified borrowers. 

However, if (1) more than $30 million were loaned to any qualified 

borrower, (2) any borrower were not a qualified borrower, or (3) 

any borrower would, if it were the issuer of a separate issue in an 

amount equal to the amount loaned to such borrower, fail to meet 


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636 

68Sec. 57(a)(5). 69Sec. 56(g)(4)(B). 

any of the other requirements of section 265(b)(3), the entire $100 

million pooled financing issue failed to qualify for the exception. 

For purposes of determining whether an issuer meets the requirements of the small issuer exception, under the special rules, 

qualified 501(c)(3) bonds issued in 2009 or 2010 were treated as if 

they were issued by the 501(c)(3) organization for whose benefit 

they were issued (and not by the actual issuer of such bonds). In 

addition, in the case of an organization described in section 

501(c)(3) and exempt from taxation under section 501(a), requirements for ‘‘qualified financing issues’’ were applied as if the section 

501(c)(3) organization were the issuer. Thus, in any event, an organization described in section 501(c)(3) and exempt from taxation 

under section 501(a) was limited to the $30 million per issuer cap 

for qualified tax exempt obligations described in section 265(b)(3). 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision extends the special rules providing modifications 

to the qualified small issuer exception to bonds issued after June 

30, 2012 and before July 1, 2013. 

Effective date.—The provision is effective for obligations issued 

after June 30, 2012. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

B. Temporary Modification of Alternative Minimum Tax Limitations on Tax-Exempt Bonds (sec. 40202 of the Senate amendment 

and secs. 56 and 57 of the Code) 

PRESENT LAW

Present law imposes an alternative minimum tax (‘‘AMT’’) on 

individuals and corporations. AMT is the amount by which the tentative minimum tax exceeds the regular income tax. The tentative 

minimum tax is computed based upon a taxpayer’s alternative minimum taxable income (‘‘AMTI’’). AMTI is the taxpayer’s taxable income modified to take into account certain preferences and adjustments. One of the preference items is tax-exempt interest on certain tax-exempt bonds issued for private activities.68 Also, in the 

case of a corporation, an adjustment based on current earnings is 

determined, in part, by taking into account 75 percent of certain 

items, including tax-exempt interest, excluded from taxable income 

but included in the corporation’s earnings and profits.69

The American Recovery and Reinvestment Act of 2009 (‘‘2009 

Act’’) provided that tax-exempt interest on private activity bonds 

issued in 2009 and 2010 is not an item of tax preference for purposes of the AMTI and interest on tax exempt bonds issued in 2009 


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and 2010 is not included in the corporate adjustment based on current earnings. 

For these purposes, a refunding bond generally is treated as 

issued on the date of the issuance of the refunded bond (or in the 

case of a series of refundings, the original bond). However, the 

2009 Act provided that tax-exempt interest on bonds issued in 2009 

and 2010 to currently refund a bond issued after December 31, 

2003, and before January 1, 2009, is not an item of tax preference 

for purposes of the AMT and is not included in the corporate adjustment based on current earnings. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision provides that tax-exempt interest on private activity bonds issued after the date of enactment and before January 

1, 2013, is not an item of tax preference for purposes of the AMT 

and interest on tax exempt bonds issued during this period is not 

included in the corporate adjustment based on current earnings. 

For these purposes, a refunding bond is treated as issued on the 

date of the issuance of the refunded bond (or in the case of a series 

of refundings, the original bond). 

Effective date.—The provision applies to interest on bonds 

issued after the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

C. Issuance of TRIP Bonds by State Infrastructure Banks (sec. 

40203 of the Senate amendment) 

PRESENT LAW

There are no Code provisions for the issuance of transportation 

and regional infrastructure project (‘‘TRIP’’) bonds. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision amends Title 23 to provide that a State, through 

a State infrastructure bank, may issue TRIP bonds and deposit the 

proceeds from such bonds into a TRIP bond account of the bank. 

A ‘‘TRIP bond’’ means any bond issued as part of an issue if (1) 100 

percent of the available project proceeds of such issue are to be 

used for expenditures incurred after the date of enactment for one 

or more qualified projects pursuant to an allocation of such proceeds to such project or projects by a State infrastructure bank, (2) 

the bond is issued by a State infrastructure bank and is in registered form (within the meaning of section 149 of the Internal 

Revenue Code), (3) the State infrastructure bank designates such 

bond for purposes of the provision and (4) the term of each bond 


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638 

70Secs. 132(f), 3121(b)(2), and 3306(b)(16) and 3401(a)(19). 71Pub. L. No. 111–5. 

that is part of such issue does not exceed 30 years. A ‘‘qualified 

project’’ means the capital improvements to any transportation infrastructure project of any governmental unit or other person, including roads, bridges, rail and transit systems, ports, and inland 

waterways proposed and approved by a State infrastructure bank, 

but does not include costs of operations or maintenance with respect to such project. 

The provision requires a State to develop a transparent and 

competitive process for the award of funds deposited into the TRIP 

bond account that considers the impact of qualified projects on the 

economy, the environment, state of good repair, and equity. The requirements of any Federal law, including Title 23 and Titles 40 and 

49, which would otherwise apply to projects to which the United 

States is a party or to funds made available under such law and 

projects assisted with those funds shall apply to (1) funds made 

available under the TRIP bond account for similar qualified 

projects and (2) similar qualified projects assisted through the use 

of such funds. 

Effective date.—The provision is effective on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

D. Mass Transit and Parking Benefits (sec. 40204 of the Senate 

amendment, and sec. 132(f) of the Code) 

PRESENT LAW

Qualified transportation fringe benefits provided by an employer are excluded from an employee’s gross income for income tax 

purposes and from an employee’s wages for payroll tax purposes.70

Qualified transportation fringe benefits include parking, transit 

passes, vanpool benefits, and qualified bicycle commuting reimbursements. No amount is includible in the income of an employee 

merely because the employer offers the employee a choice between 

cash and qualified transportation fringe benefits (other than a 

qualified bicycle commuting reimbursement). Qualified transportation fringe benefits also include a cash reimbursement by an employer to an employee. In the case of transit passes, however, a 

cash reimbursement is considered a qualified transportation fringe 

benefit only if a voucher or similar item which may be exchanged 

only for a transit pass is not readily available for direct distribution 

by the employer to the employee. 

Prior to February 17, 2009, the amount that could be excluded 

as qualified transportation fringe benefits was limited to $100 per 

month in combined vanpooling and transit pass benefits and $175 

per month in qualified parking benefits. All limits are adjusted annually for inflation, using 1998 as the base year (for 2012 the limits are $125 and $240, respectively). The American Recovery and 

Reinvestment Act of 2009 71 provided parity in qualified transporVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00644 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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72Pub. L. No. 111–312. 

tation fringe benefits by temporarily increasing the monthly exclusion for employer-provided vanpool and transit pass benefits to the 

same level as the exclusion for employer-provided parking, effective 

for months beginning on or after the date of enactment (February 

17, 2009) and before January 1, 2011. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 72

extended the parity in qualified transportation fringe benefits 

through December 31, 2011. 

Effective January 1, 2012, the amount that could be excluded as qualified transportation fringe benefits is limited to $125 per 

month in combined vanpooling and transit pass benefits and $240 

per month in qualified parking benefits. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The Senate amendment extends the parity in qualified transportation fringe benefits for the entirety of 2012. In order for the 

extension to be effective retroactive to January 1, 2012, it is intended that expenses incurred prior to enactment by an employee 

for employer-provided vanpool and transit benefits may be reimbursed by employers on a tax free basis to the extent they exceed 

$125 per month and are less than $240 per month, but only to the 

extent that such amount has not already been excluded from such 

employee’s taxable compensation. 

Effective date.—The provision in the Senate amendment is effective for months after December 31, 2011. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

E. Private Activity Volume Cap Exemption for Sewage and Water 

Facility Bonds (sec. 40205 of the Senate amendment and sec. 

146(g) of the Code) 

In general 

Subject to certain Code restrictions, interest on bonds issued 

by State and local government generally is excluded from gross income for Federal income tax purposes. Bonds issued by State and 

local governments may be classified as either governmental bonds 

or private activity bonds. Governmental bonds are bonds the proceeds of which are primarily used to finance governmental functions or which are repaid with governmental funds. Private activity 

bonds are bonds in which the State or local government serves as 

a conduit providing financing to nongovernmental persons. For this 

purpose, the term ‘‘nongovernmental person’’ generally includes the 

Federal Government and all other individuals and entities other 

than State or local governments. The exclusion from income for interest on State and local bonds does not apply to private activity 

bonds, unless the bonds are issued for certain permitted purposes 


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73Sec. 141(e). 74Sec. 142(a). 

(‘‘qualified private activity bonds’’) and other Code requirements 

are met. 

Qualified private activity bonds 

Interest on private activity bonds is taxable unless the bonds 

meet the requirements for qualified private activity bonds. Qualified private activity bonds permit States or local governments to 

act as conduits providing tax-exempt financing for certain private 

activities. The definition of qualified private activity bonds includes 

an exempt facility bond, or qualified mortgage, veterans’ mortgage, 

small issue, redevelopment, qualified 501(c)(3), or student loan 

bond.73 The definition of exempt facility bond includes bonds issued 

to finance certain transportation facilities (airports, ports, mass 

commuting, and high-speed intercity rail facilities); qualified residential rental projects; privately owned and/or operated utility facilities (sewage, water, solid waste disposal, and local district heating and cooling facilities, certain private electric and gas facilities, 

and hydroelectric dam enhancements); public/private educational 

facilities; qualified green building and sustainable design projects; 

and qualified highway or surface freight transfer facilities.74

In most cases, the aggregate volume of these tax-exempt private activity bonds is restricted by annual aggregate volume limits 

imposed on bonds issued by issuers within each State. Certain 

types of private activity bonds are exempted from the annual volume limits. 

For calendar year 2012, the State volume cap, which is indexed for inflation, equals $95 per resident of the State, or $284,560,000, 

whichever is greater. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision exempts two types of exempt facility bonds from 

the annual private activity volume limits. The newly-exempted 

bonds are exempt facility bonds for sewage and water facilities. 

The provision only applies to bonds issued before January 1, 

2018. 

Effective date.—The provision is effective for bonds issued after 

the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

F. Dedication of Gas Guzzler Tax to the Highway Trust Fund (sec. 

40303 of the Senate amendment and sec. 9503 of the Code) 

PRESENT LAW

Under present law, the Code imposes a tax (‘‘the gas guzzler 

tax’’) on automobiles that are manufactured primarily for use on 


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641 

75Sec. 4064. 76Sec. 4064(b)(1)(A). 77 ‘‘Passport Act of 1926,’’ 22 U.S.C. sec. 211a, et seq. 

public streets, roads, and highways and that are rated at 6,000 

pounds unloaded gross vehicle weight or less.75 The tax is imposed 

on the sale by the manufacturer of each automobile of a model type 

with a fuel economy of 22.5 miles per gallon or less. The tax range 

begins at $1,000 and increases to $7,700 for models with a fuel 

economy less than 12.5 miles per gallon. 

Emergency vehicles and non-passenger automobiles are exempt 

from the tax. The tax also does not apply to non-passenger automobiles. The Secretary of Transportation determines which vehicles are ‘‘non-passenger’’ automobiles, thereby exempting these vehicles from the gas guzzler tax based on regulations in effect on the 

date of enactment of the gas guzzler tax.76 Hence, vehicles defined 

in Title 49 CFR sec. 523.5 (relating to light trucks) are exempt. 

These vehicles include those designed to transport property on an 

open bed (e.g., pick-up trucks) or provide greater cargo-carrying 

than passenger carrying volume including the expanded cargo-carrying space created through the removal of readily detachable seats 

(e.g., pick-up trucks, vans, and most minivans, sports utility vehicles, and station wagons). Additional vehicles that meet the ‘‘nonpassenger’’ requirements are those with at least four of the following characteristics: (1) an angle of approach of not less than 28 

degrees; (2) a breakover angle of not less than 14 degrees; (3) a departure angle of not less than 20 degrees; (4) a running clearance 

of not less than 20 centimeters; and (5) front and rear axle clearances of not less than 18 centimeters each. These vehicles would 

include many sports utility vehicles. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision requires that amounts equivalent to the gas guzzler taxes received in the Treasury be transferred to the Highway 

Trust Fund. 

Effective date.—The provision is effective on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

G. Revocation or Denial of Passport in Case of Certain Unpaid 

Taxes (sec. 40304 of the Senate amendment and new secs. 7345 

and 6103(l)(23) of the Code) 

PRESENT LAW

The administration of passports is the responsibility of the Department of State.77 State may refuse to issue or renew a passport 

if the applicant owes child support in excess of $2,500 or owes certain types of Federal debts, such as expenses incurred in providing 


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78Sec. 6103. 79Sec. 6103(l)(3). 80Sec. 6103(l)(22). 

assistance to an applicant to return to the United States. The scope 

of this authority does not extend to rejection or revocation of a 

passport on the basis of delinquent Federal taxes. Issuance of a 

passport does not require the applicant to provide a social security 

number or taxpayer identification number. 

Returns and return information are confidential and may not 

be disclosed by the IRS, other Federal employees, State employees, 

and certain others having access to such information except as provided in the Internal Revenue Code.78 There are a number of exceptions to the general rule of nondisclosure that authorize disclosure in specifically identified circumstances, including disclosure of 

information about Federal tax debts for purposes of reviewing an 

application for a Federal loan 79 and for purposes of enhancing the 

integrity of the Medicare program.80

HOUSE PROVISION

No provision. 

SENATE AMENDMENT

If the Commissioner of Internal Revenue certifies to the Secretary of the Treasury the identity of persons who have seriously 

delinquent Federal taxes, the Secretary of Treasury or his delegate 

is authorized to transmit such certification to the Secretary of 

State for use in determining whether to issue, renew, or revoke a 

passport. Applicants whose names are included on the certifications 

provided to the Secretary of State are ineligible for a passport. The 

provision bars the Secretary of State from issuing a passport to any 

individual who has a seriously delinquent tax debt. It also requires 

revocation of a passport previously issued to any such individual. 

Exceptions are permitted for emergency or humanitarian circumstances, as well as short term use of a passport for return travel to the United States by the delinquent taxpayer. 

A seriously delinquent tax debt generally includes any outstanding debt for Federal tax in excess of $50,000, including interest and any penalties, for which a notice of lien or a notice of levy 

has been filed. This amount is to be adjusted for inflation annually, 

using calendar year 2011, and a cost-of-living adjustment. Even if 

a tax debt otherwise meets the statutory threshold, it may not be 

considered seriously delinquent if (1) the debt is being paid in a 

timely manner pursuant to an installment agreement or offer-incompromise, or (2) collection action with respect to the debt is suspended because a collection due process hearing or innocent spouse 

relief has been requested or is pending. 

Effective date.—The provision is effective on January 1, 2013. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 


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81Sec. 6331(a). Levy specifically refers to the legal process by which the IRS orders a third 

party to turn over property in its possession that belongs to the delinquent taxpayer named in 

a notice of levy. 82 Ibid. 83Sec. 6334. 84Sec. 6331(d). 85Sec. 6330. The notice and the hearing are referred to collectively as the CDP requirements. 86Secs. 6331(e) and 6343. 87Sec. 6321. 88Secs. 6331(d)(3), 6861. 89Sec. 6330(f). 90Pub. L. No. 105–34. 

H. 100 Percent Continuous Levy on Payments to Medicare Providers and Suppliers (sec. 40305 of the Senate amendment and 

sec. 6331(h) of the Code) 

PRESENT LAW

In general 

Levy is the administrative authority of the IRS to seize a taxpayer’s property, or rights to property, to pay the taxpayer’s tax liability.81 Generally, the IRS is entitled to seize a taxpayer’s property by levy if a Federal tax lien has attached to such property,82

the property is not exempt from levy,83 and the IRS has provided 

both notice of intention to levy 84 and notice of the right to an administrative hearing (the notice is referred to as a ‘‘collections due 

process notice’’ or ‘‘CDP notice’’ and the hearing is referred to as 

the ‘‘CDP hearing’’) 85 at least 30 days before the levy is made. A 

levy on salary or wages generally is continuously in effect until released.86 A Federal tax lien arises automatically when: (1) a tax assessment has been made; (2) the taxpayer has been given notice of 

the assessment stating the amount and demanding payment; and 

(3) the taxpayer has failed to pay the amount assessed within 10 

days after the notice and demand.87

The notice of intent to levy is not required if the Secretary 

finds that collection would be jeopardized by delay. The standard 

for determining whether jeopardy exists is similar to the standard 

applicable when determining whether assessment of tax without 

following the normal deficiency procedures is permitted.88

The CDP notice (and pre-levy CDP hearing) is not required if: 

(1) the Secretary finds that collection would be jeopardized by 

delay; (2) the Secretary has served a levy on a State to collect a 

Federal tax liability from a State tax refund; (3) the taxpayer subject to the levy requested a CDP hearing with respect to unpaid 

employment taxes arising in the two-year period before the beginning of the taxable period with respect to which the employment 

tax levy is served; or (4) the Secretary has served a Federal contractor levy. In each of these four cases, however, the taxpayer is 

provided an opportunity for a hearing within a reasonable period 

of time after the levy.89

Federal payment levy program 

To help the IRS collect taxes more effectively, the Taxpayer 

Relief Act of 1997 90 authorized the establishment of the Federal 

Payment Levy Program (‘‘FPLP’’), which allows the IRS to continuously levy up to 15 percent of certain ‘‘specified payments’’ by the 

Federal government if the payees are delinquent on their tax obliVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00649 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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91Sec. 6331(h)(3). The word ‘‘property’’ was added to ‘‘goods or services’’ in section 301 of the 

‘‘3% Withholding Repeal and Job Creation Act,’’ Pub. L. No. 112–56. 92Government Accountability Office, Medicare: Thousands of Medicare Providers Abuse the 

Federal Tax System (GAO–08–618), June 13, 2008. 93 Ibid., p. 4. 94 Ibid. 95Medicare Improvement for Patients and Providers Act of 2008, Pub. L. No. 110–275, sec. 

189. 

gations. With respect to payments to vendors of goods, services, or 

property sold or leased to the Federal government, the continuous 

levy may be up to 100 percent of each payment.91 The levy (either 

up to 15 percent or up to 100 percent) generally continues in effect 

until the liability is paid or the IRS releases the levy. 

Under FPLP, the IRS matches its accounts receivable records 

with Federal payment records maintained by the Department of 

the Treasury’s Financial Management Service (‘‘FMS’’), such as certain Social Security benefit and Federal wage records. When these 

records match, the delinquent taxpayer is provided both the notice 

of intention to levy and the CDP notice. If the taxpayer does not 

respond after 30 days, the IRS can instruct FMS to levy the taxpayer’s Federal payments. Subsequent payments are continuously 

levied until such time that the tax debt is paid or the IRS releases 

the levy. 

Payments to Medicare providers 

In 2008, the Government Accountability Office (‘‘GAO’’) found 

that over 27,000 Medicare providers (i.e., about six percent of all 

such providers) owed more than $2 billion of tax debt, consisting 

largely of individual income and payroll taxes.92 In one case, a 

home health company received over $15 million in Medicare payments but did not pay $7 million in Federal taxes.93 As of 2008, 

the Centers for Medicare & Medicaid Services (‘‘CMS’’) had not incorporated most of its Medicare payments into the continuous levy 

program, despite the IRS authority to continuously levy up to 15 

percent of these payments. Thus, for calendar year 2006, the government lost the chance to possibly collect over $140 million in unpaid Federal taxes.94 The GAO noted that CMS officials promised 

to incorporate about 60 percent of all Medicare fee-for-service payments into the levy program by October 2008 and the remaining 

40 percent in the next several years. 

Following the GAO study, Congress directed CMS to participate in the FPLP and ensure that all Medicare provider and supplier payments are processed through it, in specified graduated 

percentages, by the end of fiscal year 2011.95

HOUSE PROVISION

No provision. 

SENATE AMENDMENT

The provision allows Treasury to levy up to 100 percent of a 

payment to a Medicare provider to collect unpaid taxes. 

Effective date.—The provision is effective for payments made 

after the date of enactment. 


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96Secs. 355 and 368(a)(1)(D). Section 355 imposes requirements for a qualified spin-off, splitoff, or split-up. Among other requirements, in order for a transaction to qualify under section 

355, the distributing corporation must either (i) distribute all of the stock and securities of the 

controlled corporation that it holds, or (ii) distribute at least an amount of stock constituting 

control under section 368(c) and establish to the satisfaction of the Secretary of the Treasury 

that the retention of stock (or stock and securities) was not in pursuance of a plan having as 

one of its principal purposes the avoidance of Federal income tax. Sec. 355(a)(1)(D). Section 355 

Continued 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

I. Appropriation to the Highway Trust Fund of Amounts Attributable to Certain Duties on Imported Vehicles (sec. 40306 of the 

Senate amendment) 

PRESENT LAW

Customs duties are deposited into the general fund of the 

Treasury of the United States. This includes customs duties collected on imported vehicles classified under Chapter 87 of the Harmonized Tariff Schedule of the United States. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision would appropriate from the General Fund and 

deposit into the Highway Trust Fund amounts equivalent to 

amounts received in the General Fund, for FY 2012 through FY 

2016, on articles classified under subheadings 8703.22.00 and 

8703.24.00 of Chapter 87. 

Effective date.—The provision is effective on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

J. Treatment of Securities of a Controlled Corporation Exchanged 

for Assets in Certain Reorganizations (sec. 40307 of the Senate 

amendment and sec. 361 of the Code) 

PRESENT LAW

The transfer of assets by a transferor corporation to another 

corporation, controlled (immediately after the transfer) by the 

transferor or one or more of its shareholders, qualifies as a tax-free 

reorganization if the transfer is made by one corporation (‘‘distributing’’) to a controlled subsidiary corporation (‘‘controlled’’), followed by the distribution of the stock and securities of the controlled subsidiary in a divisive spin-off, split-off, or split-up which 

meets the requirements of section 355, including an active business 

requirement and a requirement that the transaction is not used 

principally as a device for the distribution of earnings and profits 

(‘‘divisive D reorganization’’).96


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imposes other requirements to avoid gain recognition at the corporate level with respect to the 

spin-off, split-up, or split-off, e.g., secs. 355(d) and (e). 97Sec. 361(a). 98Sec. 361(b). 99The last sentence of sec. 361(b)(3). 100Sec. 357(c) and the last sentence of sec. 361(b)(3). 

No gain or loss is recognized to a corporation if the corporation 

is a party to a reorganization and exchanges property, in pursuance of the plan of reorganization, solely for stock or securities in 

another corporation that is a party to the reorganization.97 If property other than stock or securities is received (‘‘other property’’), 

the transferor corporation recognizes gain (if any) to the extent the 

other property is not distributed.98

In addition, in a divisive D reorganization, if there is a transfer 

to the transferor corporation’s creditors of money or other property 

received from the controlled corporation in the exchange in connection with the reorganization, the transferor distributing corporation 

recognizes gain to the extent the sum of the money and the fair 

market value of the other property exceeds the adjusted bases of 

the assets transferred (reduced by the amount of liabilities assumed by the transferee under section 357(c)).99 Thus, such a 

transfer to creditors is aggregated with other assumptions of the 

transferor corporation’s liabilities by the transferee, and the transferor corporation recognizes gain to the extent this aggregate 

amount exceeds the adjusted basis of assets transferred.100

For example, if in a divisive D reorganization the controlled 

corporation either (1) directly assumes the debt of the distributing 

corporation, or (2) borrows and distributes cash to the distributing 

corporation to pay the distributing corporation’s creditors, such 

debt assumption or cash distribution is treated as money received 

by the distributing corporation, and the aggregate amount of such 

debt assumptions and distributions is taxable to the extent it exceeds the distributing corporation’s basis in the assets transferred 

to the controlled corporation. However, if the controlled corporation 

issues its own debt securities and such securities are distributed to 

the creditors of the distributing corporation, the controlled corporation’s debt securities are not treated as money or other property received by the distributing corporation. Thus, the distributing corporation could use the controlled corporation’s securities to retire 

the distributing corporation’s own debt, recognize no gain, and be 

in the same economic position as if its debt had been directly assumed by the controlled corporation or as if it had retired its debt 

with cash received from the controlled corporation. In addition, to 

the extent that such debt securities of the controlled corporation 

are permitted to be retained by the distributing corporation, such 

securities are not treated as taxable property. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

Under the Senate amendment, in the case of a divisive D reorganization, no gain or loss is recognized to a corporation if the corporation is a party to a reorganization and exchanges property, in 


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101Section 351(g)(2) defines nonqualified preferred stock as preferred stock if (i) the holder 

has a right to require the issuer or a related person to redeem or purchase the stock, which 

right may be exercised within the 20 year period beginning on the issue date and is not subject 

to a contingency which, as of the issue date, makes remote the likelihood of redemption or purchase; (ii) the issuer or a related person is required to redeem or purchase the stock (within 

such 20 year period and not subject to such a contingency); (iii) the issuer or a related person 

has the right to redeem or purchase the stock (which right is exercisable within such 20 year 

period and not subject to such a contingency) and as of the issue date, it is more likely than 

not that such right will be exercised, or (iv) the dividend on such stock varies in whole or in 

part (directly or indirectly) with reference to interest rates, commodity prices, or other similar 

indices. There are exceptions for certain rights that are exercisable only on the death, disability 

or mental incompetency of the holder, or only upon the separation from service of a service provider who received the right as reasonable compensation for services, and for certain situations 

involving publicly traded stock. Nonqualified preferred stock is treated in the same manner as 

securities under section 351 and thus is not qualified consideration that may be received tax 

free by a contributing shareholder. Sections 354(a)(2)(C) and 356(e) treat nonqualified preferred 

stock as taxable consideration if received in exchange for stock by shareholders of a corporation 

that itself is a party to a reorganization (except to the extent received in exchange for other 

nonqualified preferred stock); and section 355 contains a similar rule (sec. 355(a)(3)(D)). 

pursuance of the plan of reorganization, solely for stock other than 

nonqualified preferred stock (as defined in section 351(g)(2)).101

Thus, under the provision, securities and nonqualified preferred 

stock are treated as ‘‘other property.’’ 

The transferor corporation’s gain on the exchange is recognized 

to the extent of the sum of money and the value of other property, 

including securities and nonqualified preferred stock, not distributed in pursuance of the plan of reorganization. A distribution to 

creditors of the transferor corporation is not treated as a distribution for this purpose. 

The value of controlled corporation securities or nonqualified 

preferred stock transferred to creditors of the distributing corporation is treated in the same manner as a direct assumption of distributing corporation’s debt by the controlled corporation, or as a 

distribution of cash (or other nonqualified property) from the controlled corporation that is paid to the distributing corporation’s 

creditors, so that the distributing corporation recognizes gain on 

the exchange to the extent that the sum of such amounts exceeds 

the adjusted bases of the assets transferred. 

Effective date.—The provision generally applies to exchanges 

occurring after the date of enactment. 

However, the provision does not apply to any exchange in connection with a transaction which is (1) made pursuant to a written 

agreement which was binding on February 6, 2012 and at all times 

thereafter, (2) described in a ruling request submitted to the IRS 

on or before such date, or (3) described on or before such date in 

a public announcement or in a filing with the Securities and Exchange Commission. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 


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102Sec. 6331(a). Levy specifically refers to the legal process by which the IRS orders a third 

party to turn over property in its possession that belongs to the delinquent taxpayer named in 

a notice of levy. 103 Ibid. 104Sec. 6334. 105Sec. 6331(d). 106Sec. 6330. The notice and the hearing are referred to collectively as the CDP requirements. 107Secs. 6331(e) and 6343. 108Sec. 6321. 109Secs. 6331(d)(3) and 6861. 110Sec. 6330(f). 111 5 U.S.C. sec. 8437(e)(3). 

K. Internal Revenue Service Levies and Thrift Savings Plan 

Accounts (sec. 40308 of the Senate amendment) 

PRESENT LAW

In general 

Levy is the IRS’s administrative authority to seize a taxpayer’s 

property, or rights to property, to pay the taxpayer’s tax liability.102 Generally, the IRS is entitled to seize a taxpayer’s property 

by levy if a Federal tax lien has attached to such property,103 the 

property is not exempt from levy,104 and the IRS has provided both 

notice of intention to levy 105 and notice of the right to an administrative hearing (the notice is referred to as a ‘‘collections due process notice’’ or ‘‘CDP notice’’ and the hearing is referred to as the 

‘‘CDP hearing’’) 106 at least 30 days before the levy is made. A levy 

on salary or wages is generally continuously in effect until released.107 A Federal tax lien arises automatically when: (1) a tax 

assessment has been made; (2) the taxpayer has been given notice 

of the assessment stating the amount and demanding payment; 

and (3) the taxpayer has failed to pay the amount assessed within 

10 days after the notice and demand.108

The notice of intent to levy is not required if the Secretary 

finds that collection would be jeopardized by delay. The standard 

for determining whether jeopardy exists is similar to the standard 

applicable when determining whether assessment of tax without 

following the normal deficiency procedures is permitted.109

The CDP notice (and pre-levy CDP hearing) is not required if: 

(1) the Secretary finds that collection would be jeopardized by 

delay; (2) the Secretary has served a levy on a State to collect a 

Federal tax liability from a State tax refund; (3) the taxpayer subject to the levy requested a CDP hearing with respect to unpaid 

employment taxes arising in the two-year period before the beginning of the taxable period with respect to which the employment 

tax levy is served; or (4) the Secretary has served a Federal contractor levy. In each of these four cases, however, the taxpayer is 

provided an opportunity for a hearing within a reasonable period 

of time after the levy.110

Thrift Savings Plan 

Present law includes an anti-alienation rule that provides that 

the balance of an employee’s Thrift Savings Plan (‘‘TSP’’) Account 

is subject to taking only for the enforcement of one’s obligations to 

provide for child support or alimony payments, restitution orders, 

certain forfeitures, or certain obligations of the Executive Director.111 The authority for the IRS to levy an employee’s TSP AcVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00654 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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112Sec. 168. 113 Rev. Proc. 87–56, 1987—42 I.R.B. 4. 114 Ibid. The longest MACRS recovery period is 50 years and applies to railroad gradings and 

tunnel bores. Sec. 168(c). 

count to satisfy tax liabilities is not mentioned in the anti-alienation rule; TSP Accounts are not specifically enumerated in the 

Code provisions identifying property that is exempt from levy. 

HOUSE PROVISION

No provision. 

SENATE AMENDMENT

The provision amends the statutory provisions governing the 

TSP to clarify that the anti-alienation provisions therein do not bar 

the IRS from issuing a notice of levy on a TSP Account. 

Effective date.—The provision is effective upon date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

L. Depreciation and Amortization Rules for Highway and Related 

Property Subject to Long-Term Leases (sec. 40309 of the Senate 

amendment and secs. 168, 197, and 147 of the Code) 

PRESENT LAW

Depreciation and amortization for highways and related property 

A taxpayer generally must capitalize the cost of property used 

in a trade or business and recover such cost over time through annual deductions for depreciation or amortization. Tangible property 

generally is depreciated under the modified accelerated cost recovery system (‘‘MACRS’’), which determines depreciation by applying 

specific recovery periods, placed-in-service conventions, and depreciation methods to the cost of various types of depreciable property.112 The alternative depreciation system (‘‘ADS’’) applies with 

respect to tangible property used predominantly outside the United 

States during the taxable year, tax-exempt use property, tax-exempt bond financed property, and certain other property. ADS generally requires the use of the straight-line method without regard 

to salvage value, and requires longer recovery periods than 

MACRS. 

Under MACRS, the cost of land improvements (such as roads 

and fences) is recovered over 15 years.113 Land improvements subject to ADS are recovered over 20 years using the straight-line 

method.114

Amortization of intangible property 

The cost recovery of many intangible assets is governed by the 

rules of section 197. In particular, section 197 provides that any 

amortizable section 197 intangible, including rights granted by a 


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115Secs. 197(d)(1)(D) and (F). The 15-year amortization provision does not apply to various 

types of rights, including any interest in land. Sec. 197(e)(2). 116Sec. 141. 117Sec. 147(e). 118Sec. 7701(e). 

governmental unit and franchise rights, is amortized over a 15-year 

period.115

Private activity bond financing for highways 

In general, interest on a private activity bond that is a qualified bond is excludable from taxable income.116 Under present law, 

a private activity bond is not a qualified bond, interest on which 

is tax-exempt, if any portion of the proceeds of the issue of which 

the bond is a part is used to provide any airplane, skybox, or other 

private luxury box, health club facility, facility primarily used for 

gambling, or store the principal business of which is the sale of alcoholic beverages for consumption off premises.117

HOUSE BILL

No provision. 

SENATE AMENDMENT

Under this provision, the depreciation for applicable leased 

highway property is determined under ADS with a statutory 45- 

year recovery period and requirement to use the straight-line method. Further, this provision requires that any amortizable section 

197 intangible acquired in connection with an applicable lease 

must be recovered over a period not less than the term of the applicable lease. 

Under this provision, private activity bonds are not qualified 

bonds, interest on which is tax-exempt, if the bonds are part of an 

issue, any portion of the proceeds of which is used to finance any 

applicable leased highway property. 

For purposes of this provision, applicable leased highway property is defined as property subject to an applicable lease and placed 

in service before the date of such lease. An applicable lease is defined as an arrangement between the taxpayer and a State or political subdivision thereof, or any agency or instrumentality of either, 

under which the taxpayer leases a highway and associated improvements, receives a right-of-way on the public lands underlying 

such highway and improvements, and receives a grant of a franchise or other intangible right permitting the taxpayer to receive 

funds relating to the operation of such highway. As under present 

law, a contract that purports to be a service contract or other arrangement (including a partnership or other passthrough entity) is 

treated as a lease if the contract or arrangement is properly treated as a lease.118

Effective date.—The provision is effective for leases entered 

into, and private activity bonds issued, after the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 


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119Secs. 3101 and 3111. 120Sec. 1401. 121Sec. 101(a)(1). In the case of certain accelerated death benefits and viatical settlements, 

special rules treat certain amounts as amounts paid by reason of the death of an insured (that 

is, generally, excludable from income). Sec. 101(g). The rules relating to accelerated death benefits provide that amounts treated as paid by reason of the death of the insured include any 

amount received under a life insurance contract on the life of an insured who is a terminally 

ill individual, or who is a chronically ill individual (provided certain requirements are met). For 

this purpose, a terminally ill individual is one who has been certified by a physician as having 

an illness or physical condition which can reasonably be expected to result in death in 24 

months or less after the date of the certification. A chronically ill individual is one who has been 

certified by a licensed health care practitioner within the preceding 12-month period as meeting 

certain ability-related requirements. In the case of a viatical settlement, if any portion of the 

death benefit under a life insurance contract on the life of an insured who is terminally ill or 

chronically ill is sold to a viatical settlement provider, the amount paid for the sale or assignment of that portion is treated as an amount paid under the life insurance contract by reason 

of the death of the insured (that is, generally, excludable from income). For this purpose, a 

Continued 

M. Transfers to Federal Old-Age and Survivors Insurance Trust 

Fund and Federal Disability Insurance Trust Fund 

(sec. 40314 of the Senate amendment) 

PRESENT LAW

To finance Social Security and Medicare benefits, taxes under 

the Federal Insurance Contributions Act (‘‘FICA’’) are imposed on 

employers and employees with respect to employee wages.119 Similar taxes are imposed under the Self-Employment Contributions 

Act (‘‘SECA’’) on self-employed individuals with respect to their 

self-employment income.120 These taxes consist of two parts: (1) 

old-age, survivors, and disability insurance (‘‘OASDI’’), which correlates to the Social Security program that provides monthly benefits after retirement, death or disability; and (2) Medicare hospital 

insurance (‘‘HI’’). 

HOUSE BILL

No provision. 

SENATE AMENDMENT

Under the Senate amendment, the following amounts are transferred from the General Fund to the OASDI Trust Funds: $27 

million in fiscal year 2012, and $82 million in fiscal year 2014. 

Effective date.—The Senate amendment provision is effective 

on the date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

N. Modify Rules that Apply to Sales of Life Insurance Contracts 

(secs. 100112–4 of the Senate amendment and new sec. 6050X of 

the Code) 

PRESENT LAW

An exclusion from Federal income tax is provided for amounts 

received under a life insurance contract paid by reason of the death 

of the insured.121


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viatical settlement provider is a person regularly engaged in the trade or business of purchasing, or taking assignments of, life insurance contracts on the lives of terminally ill or chronically ill individuals (provided certain requirements are met). 122Sec. 101(a)(2). 123Sec. 101(a)(2)(A). 124Sec. 101(a)(2)(B). 125 2009–21 I.R.B. 1029. 126 2009–21 I.R.B. 1031. 

Under rules known as the transfer for value rules, if a life insurance contract is sold or otherwise transferred for valuable consideration, the amount paid by reason of the death of the insured 

that is excludable generally is limited.122 Under the limitation, the 

excludable amount may not exceed the sum of (1) the actual value 

of the consideration, and (2) the premiums or other amounts subsequently paid by the transferee of the contract. Thus, for example, 

if a person buys a life insurance contract, and the consideration he 

pays combined with his subsequent premium payments on the contract are less than the amount of the death benefit he later receives under the contract, then the difference is includable in the 

buyer’s income. 

Exceptions are provided to the limitation on the excludable 

amount. The limitation on the excludable amount does not apply 

if (1) the transferee’s basis in the contract is determined in whole 

or in part by reference to the transferor’s basis in the contract,123

or (2) the transfer is to the insured, to a partner of the insured, 

to a partnership in which the insured is a partner, or to a corporation in which the insured is a shareholder or officer.124

IRS guidance sets forth more details of the tax treatment of a 

life insurance policyholder who sells or surrenders the life insurance contract and the tax treatment of other sellers and of buyers 

of life insurance contracts. The guidance relates to the character of 

taxable amounts (ordinary or capital) and to the taxpayer’s basis 

in the life insurance contract. 

In Revenue Ruling 2009–13,125 the IRS ruled that income recognized under section 72(e) on surrender to the life insurance company of a life insurance contract with cash value is ordinary income. In the case of sale of a cash value life insurance contract, the 

IRS ruled that the insured’s (seller’s) basis is reduced by the cost 

of insurance, and the gain on sale of the contract is ordinary income to the extent of the amount that would be recognized as ordinary income if the contract were surrendered (the ‘‘inside buildup’’), 

and any excess is long-term capital gain. Gain on the sale of a term 

life insurance contract (without cash surrender value) is long-term 

capital gain under the ruling. 

In Revenue Ruling 2009–14,126 the IRS ruled that under the 

transfer for value rules, a portion of the death benefit received by 

a buyer of a life insurance contract on the death of the insured is 

includable as ordinary income. The portion is the excess of the 

death benefit over the consideration and other amounts (e.g., premiums) paid for the contract. Upon sale of the contract by the purchaser of the contract, the ruling concludes that the gain is longterm capital gain, and in determining the gain, the basis of the 

contract is not reduced by the cost of insurance. 


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HOUSE BILL

No provision. 

SENATE AMENDMENT

In general 

The provision imposes reporting requirements in the case of 

the purchase of an existing life insurance contract in a reportable 

policy sale and imposes reporting requirements on the payor in the 

case of the payment of reportable death benefits. The provision sets 

forth rules for determining the basis of a life insurance or annuity 

contract. Lastly, the provision modifies the transfer for value rules 

in a transfer of an interest in a life insurance contract that is a 

reportable policy sale. 

Reporting requirements for acquisitions of life insurance contracts 

Reporting upon acquisition of life insurance contract 

The reporting requirement applies to every person who acquires a life insurance contract, or any interest in a life insurance 

contract, in a reportable policy sale during the taxable year. A reportable policy sale means the acquisition of an interest in a life 

insurance contract, directly or indirectly, if the acquirer has no 

substantial family, business, or financial relationship with the insured (apart from the acquirer’s interest in the life insurance contract). An indirect acquisition includes the acquisition of an interest in a partnership, trust, or other entity that holds an interest 

in the life insurance contract. 

Under the reporting requirement, the acquiror of the contract 

reports information about the acquisition to the IRS, to the insurance company that issued the contract, and to the person or persons receiving a payment. The information reported by the acquiror 

about the acquisition of the contract is (1) the acquiror’s name, address, and taxpayer identification number (‘‘TIN’’), (2) the name, 

address, and TIN of each recipient of payment in the reportable 

policy sale, (3) the date of the reportable policy sale, (4) the name 

of the issuer and the policy number of the life insurance contract, 

and (5) the amount of each payment. 

The statement the acquiror provides to any issuer of a life insurance contract is not required to include the amount of the payment or payments for the acquisition of the contract. The statement the acquiror provides to any issuer of a life insurance contract or recipient of a payment in the reportable policy sale also includes the name, address, and phone number of the acquiror’s information contact. 

Reporting of seller’s basis in the life insurance contract 

On receipt of a report described above, or on any notice of the 

transfer of a life insurance contract to a foreign person, each issuer 

is required to report to the IRS and to the seller or transferor (1) 

the basis of the contract (i.e., the investment in the contract within 

the meaning of section 72(e)(6)), (2) the name, address, and TIN of 

the seller or the transferor to a foreign person, and (3) the policy 

number of the contract. Notice of the transfer of a life insurance 


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contract to a foreign person is intended to include any sort of notice, including information provided for nontax purposes such as 

change of address notices for purposes of sending statements or for 

other purposes, or information relating to loans, premiums, or 

death benefits with respect to the contract. 

The statement the issuer provides to any seller or transferor 

to a foreign person also includes the name, address, and phone 

number of the issuer’s information contact. 

Reporting with respect to reportable death benefits 

When a reportable death benefit is paid under a life insurance 

contract, the payor insurance company is required to report information about the payment to the IRS and to the payee. Under this 

reporting requirement, the payor reports (1) the payor’s name, address, and TIN; (2) the name, address, and TIN of each recipient 

of payment; (3) the date of each payment; and (4) the amount of 

each payment. A reportable death benefit means an amount paid 

by reason of the death of the insured under a life insurance contract that has been transferred in a reportable policy sale. 

The statement the payor provides to any payee also includes 

the name, address, and phone number of the payor’s information 

contact. 

Payment 

For purposes of these reporting requirements, payment means 

the amount of cash and the fair market value of any consideration 

transferred in a reportable policy sale. 

Determination of basis 

The provision provides that in determining the basis of a life 

insurance or annuity contract, no adjustment is made for mortality, 

expense, or other reasonable charges incurred under the contract 

(known as ‘‘cost of insurance’’). This reverses the position of the 

IRS in Revenue Ruling 2009–13 that on sale of a cash value life 

insurance contract, the insured’s (seller’s) basis is reduced by the 

cost of insurance. 

Scope of transfer for value rules 

The provision provides that the exceptions to the transfer for 

value rules do not apply in the case of a transfer of a life insurance 

contract, or any interest in a life insurance contract, in a reportable 

policy sale. Thus, some portion of the death benefit ultimately payable under such a contract may be includable in income. 

Effective date 

Under the provision, the reporting requirement is effective for 

reportable policy sales occurring after December 31, 2012, and reportable death benefits paid after December 31, 2012. The clarification of the basis rules for life insurance and annuity contracts is 

effective for transactions entered into after August 25, 2009. The 

modification of exception to the transfer for value rules is effective 

for transfers occurring after December 31, 2012. 


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127 31 U.S.C. sec. 5311. 128 31 U.S.C. sec. 5314. The term ‘‘agency’’ in the Bank Secrecy Act includes financial institutions. 129 31 U.S.C. sec. 5314(a) provides: ‘‘Considering the need to avoid impeding or controlling the 

export or import of monetary instruments and the need to avoid burdening unreasonably a person making a transaction with a foreign financial agency, the Secretary of the Treasury shall 

require a resident or citizen of the United States or a person in, and doing business in, the 

United States, to keep records, file reports, or keep records and file reports, when the resident, 

citizen, or person makes a transaction or maintains a relation for any person with a foreign financial agency.’’ 130See, e.g., Title III of the USA PATRIOT Act, Pub. L. No. 107–56 (October 26, 2001) (sections 351 through 366). 131 31 U.S.C. sec. 5318A. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

O. Authorizing Special Measures Against Foreign Jurisdictions, Financial Institutions, and Others That Significantly Impede U.S. 

Tax Enforcement 

(sec. 100201 of the Senate amendment and 31 U.S.C. sec. 5138A) 

PRESENT LAW

Cross-border transfers of assets to, and interests held in, foreign bank accounts or foreign entities are subject to reporting requirements under Title 31 (the Bank Secrecy Act) of the United 

States Code. The Bank Secrecy Act requires both financial institutions and account holders to report information that has ‘‘a high 

degree of usefulness in criminal, tax, or regulatory investigations 

or proceedings.’’ 127 Citizens and residents of the United States as 

well as persons doing business in the United States are required 

to keep records and file reports that contain the following information ‘‘in the way and to the extent the Secretary prescribes’’ if they 

enter into a transaction or maintain an account with a foreign financial agency: (1) the identity and address of participants in a 

transaction or relationship; (2) the legal capacity in which a participant is acting; (3) the identity of real parties in interest; and (4) 

a description of the transaction, as specified by the Secretary.128

Regulations promulgated pursuant to broad regulatory authority 

granted to the Secretary in the Bank Secrecy Act 129 provide additional guidance regarding the disclosure obligation with respect to 

foreign accounts. 

As part of a series of reforms directed at international financing of terrorism,130 the Bank Secrecy Act authorizes the Secretary 

of the Treasury to impose special measures on certain domestic institutions or agencies if, after consultation with the Secretary of 

State and the Attorney General, the Secretary of the Treasury determines that there are reasonable grounds to conclude that a jurisdiction or institution operating outside the United States, or accounts or transactions involving such jurisdictions or institutions, 

are of primary money laundering concern.131

In determining whether a particular jurisdiction is of primary 

money laundering concern, the Secretary considers multiple factors 

that may evidence that the jurisdiction lacks adequate transparency and may be a haven for criminal activities. Evidence that 


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132Section 5318A(4)(A) requires consultation with Board of the Governors of the Federal Reserve System, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the National Credit Union Administration Board, any other appropriate Federal banking agency and any other interested party identified by the Secretary. 133 Hiring Incentives to Restore Employment Act (‘‘HIRE’’), Pub. L. No. 111–147 (2010). 134Subtitle A of Title V of the HIRE Act, entitled ‘‘Foreign Account Tax Compliance,’’ was 

based on legislative proposals in the Foreign Account Tax Compliance Act (‘‘FATCA’’), a bill introduced in both the House and Senate on October 27, 2009. See H.R. 3933 and S. 1934, respectively. 135 Under section 1471(c), an FFI must report (1) the name, address, and taxpayer identification number of each U.S. person or a foreign entity with one or more substantial U.S. owners 

holding an account, (2) the account number, (3) the account balance or value, and (4) except 

groups involved in organized crime, international terrorism or proliferation of weapons of mass destruction have transacted business 

in that jurisdiction as well as the degree of corruption among highlevel officials must be considered. With respect to assessing the fiscal transparency of the jurisdiction, factors include the domestic 

laws of that jurisdiction and their administration; the reputation of 

the jurisdiction as an offshore banking haven by credible international organizations; the extent to which the jurisdiction offers 

regulatory advantages to nonresidents; and whether the United 

States has a Mutual Legal Assistance Treaty (‘‘MLAT’’) with the jurisdiction, and if so, experience of U.S. officials in obtaining information under that agreement. 

In determining whether to apply one or more special measure 

to a particular institution, or with respect to a type of account or 

transaction, the Secretary considers whether the transactions, accounts or institutions facilitate money laundering through a particular jurisdiction. The Secretary also looks at evidence that organized criminal groups or terrorists have been able to avail themselves of such institution, accounts or transactions. The extent to 

which legitimate business is conducted through the accounts or institutions is also considered. 

The selection of the specific measures is made after consultation with other financial regulatory agencies and the Secretary of 

State.132 The factors that must be considered in selecting which of 

the measures to invoke are enumerated and include U.S. national 

security and foreign policy; the cost and burden of compliance with 

the measures; whether U.S. financial institutions will be placed at 

a competitive disadvantage as a result; the impact of the measure 

on the international payment, clearance and settlement system; 

and whether any similar sanction has been imposed by another nation or multilateral group. Increased reporting obligations with respect to types of transactions or accounts involving a foreign jurisdiction, mandatory collection of information about beneficial ownership of certain types of accounts, and prohibitions against opening 

or maintaining payable-through or correspondent accounts with a 

nexus to foreign jurisdictions are among the measures permitted. 

These measures may be imposed separately or in combination. 

Cross-border payment flows are also subject to reporting obligations for tax purposes.133 Those reporting obligations and related 

provisions are commonly referred to as FATCA,134 which added 

new Chapter 4, a reporting and withholding regime, to Subtitle A 

of the Code. Chapter 4 requires reporting of specific information by 

third parties for certain U.S. accounts held in foreign financial institutions (‘‘FFIs’’).135 Information reporting is encouraged through 


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as provided by the Secretary, the gross receipts and gross withdrawals or payments from the 

account. 136The information reporting requirement under the HIRE Act generally applies to payments 

made after December 31, 2012. 137TIEAs are entered into by the Administration, without the advice and consent of the Senate. In contrast to the bilateral tax treaties, TIEAs are generally limited in scope to mutual exchange of information. Since the 1980s, the United States has entered into over 20 such agreements. 138Overview of the OECD’s Work on International Tax Evasion (A note by the OECD Secretariat), p. 3, March 23, 2009. 

the withholding of tax on payments to FFIs unless the FFI enters 

into and complies with an information reporting agreement with 

the Secretary of the Treasury.136

Access to the foreign-based documents necessary to combat 

money laundering and tax evasion is secured through information 

exchanges with foreign jurisdictions under the terms of various 

treaties and international agreements, such as MLAT, tax treaties, 

or tax information exchange agreements (‘‘TIEA’’).137 International 

norms regarding fiscal transparency and exchange of information 

for tax administration purposes are reflected in the standards developed by the Organization for Economic Cooperation and Development (‘‘OECD’’). The OECD Standards have been endorsed by 

the G–20 Ministers of Finance. Whether by tax treaty or TIEA, the 

OECD Standards require that a jurisdiction (1) exchange information where it is ‘‘foreseeably relevant’’ to the administration and enforcement of the domestic laws of a requesting State; (2) not restrict exchanges on the basis of bank secrecy or domestic tax interest requirements; (3) have powers to enforce access to reliable information; (4) respect taxpayer rights; and (5) maintain strict confidentiality of information exchanged.138

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision expands the special measures powers under the 

Bank Secrecy Act by authorizing use of the powers based on a finding, made in consultation with the Commissioner of the IRS, the 

Secretary of State and the Attorney General, that an institution, 

jurisdiction or international transaction is significantly impeding 

tax enforcement. In making such a finding, cooperation of an institution or jurisdiction with the implementation of FATCA may be 

favorably considered. The information and consultations to be considered in making a finding to support use of the special measures 

on the basis of either money-laundering or tax enforcement concerns are expanded to require consideration of U.S. experience with 

administrative assistance requests under a tax treaty or tax information exchange agreement. Furthermore, a number of conforming 

changes are made to the enumeration of considerations to ensure 

that factors relevant to tax enforcement are considered. 

The process for selection of special measures to be taken and 

the considerations for their selection remain the same as under 

present law, except for the identity of the persons or agencies to 

be consulted in the process when the use of special measures is 

based on a finding that U.S. tax enforcement is being significantly 


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139 However, exceptions to the fungibility principle are provided in particular cases, some of 

which are described below. 

impeded. In that case, the Secretary of the Treasury is required to 

consult only with the Commissioner of IRS, the Secretary of State 

and the Attorney General. The Secretary of the Treasury has sole 

discretion whether to consult any other agencies. 

All special measures under present law are available for both 

anti-money-laundering and tax enforcement-based findings. The 

ability to prohibit or impose conditions on the use of correspondent 

or payable-through accounts is expanded to include the authorization, approval or use in the United States of a credit card, charge 

card, debit card or other similar financial instrument. 

Effective date.—The provision is effective upon date of enactment. 

CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

P. Delay in Application of Worldwide Interest 

(sec. 1801 of the Senate amendment and sec. 864(f) of the Code) 

PRESENT LAW

In general 

To compute the foreign tax credit limitation, a taxpayer must 

determine the amount of its taxable income from foreign sources. 

Thus, the taxpayer must allocate and apportion deductions between items of U.S.-source gross income, on the one hand, and 

items of foreign-source gross income, on the other. 

In the case of interest expense, the rules generally are based 

on the approach that money is fungible and that interest expense 

is properly attributable to all business activities and property of a 

taxpayer, regardless of any specific purpose for incurring an obligation on which interest is paid.139 For interest allocation purposes, 

all members of an affiliated group of corporations generally are 

treated as a single corporation (the so-called ‘‘one-taxpayer rule’’) 

and allocation must be made on the basis of assets rather than 

gross income. The term ‘‘affiliated group’’ in this context generally 

is defined by reference to the rules for determining whether corporations are eligible to file consolidated returns. 

For consolidation purposes, the term ‘‘affiliated group’’ means 

one or more chains of includible corporations connected through 

stock ownership with a common parent corporation that is an includible corporation, but only if: (1) the common parent owns directly stock possessing at least 80 percent of the total voting power 

and at least 80 percent of the total value of at least one other includible corporation; and (2) stock meeting the same voting power 

and value standards with respect to each includible corporation (excluding the common parent) is directly owned by one or more other 

includible corporations. 

Generally, the term ‘‘includible corporation’’ means any domestic corporation except certain corporations exempt from tax under 


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140Temp. Treas. Reg. sec. 1.861–11T(d)(4). 141Sec. 864(e)(5)(C). 142Sec. 864(e)(5)(D). 143Pub. L. No. 108–357, sec. 401. 

section 501 (for example, corporations organized and operated exclusively for charitable or educational purposes), certain life insurance companies, corporations electing application of the possession 

tax credit, regulated investment companies, real estate investment 

trusts, and domestic international sales corporations. A foreign corporation generally is not an includible corporation. 

Subject to exceptions, the consolidated return and interest allocation definitions of affiliation generally are consistent with each 

other. For example, both definitions generally exclude all foreign 

corporations from the affiliated group. Thus, while debt generally 

is considered fungible among the assets of a group of domestic affiliated corporations, the same rules do not apply as between the 

domestic and foreign members of a group with the same degree of 

common control as the domestic affiliated group. 

Banks, savings institutions, and other financial affiliates 

The affiliated group for interest allocation purposes generally 

excludes what are referred to in the Treasury regulations as ‘‘financial corporations.’’ 140 A financial corporation includes any corporation, otherwise a member of the affiliated group for consolidation 

purposes, that is a financial institution (described in section 581 or 

section 591), the business of which is predominantly with persons 

other than related persons or their customers, and which is required by State or Federal law to be operated separately from any 

other entity that is not a financial institution.141 The category of 

financial corporations also includes, to the extent provided in regulations, bank holding companies (including financial holding companies), subsidiaries of banks and bank holding companies (including financial holding companies), and savings institutions predominantly engaged in the active conduct of a banking, financing, or 

similar business.142

A financial corporation is not treated as a member of the regular affiliated group for purposes of applying the one-taxpayer rule 

to other nonfinancial members of that group. Instead, all such financial corporations that would be so affiliated are treated as a 

separate single corporation for interest allocation purposes. 

Worldwide interest allocation 

In general 

The American Jobs Creation Act of 2004 (‘‘AJCA’’) 143 modified 

the interest expense allocation rules described above (which generally apply for purposes of computing the foreign tax credit limitation) by providing a one-time election (the ‘‘worldwide affiliated 

group election’’) under which the taxable income of the domestic 

members of an affiliated group from sources outside the United 

States generally is determined by allocating and apportioning interest expense of the domestic members of a worldwide affiliated 

group on a worldwide-group basis (i.e., as if all members of the 

worldwide group were a single corporation). If a group makes this 


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144For purposes of determining the assets of the worldwide affiliated group, neither stock in 

corporations within the group nor indebtedness (including receivables) between members of the 

group is taken into account. 145 Although the interest expense of a foreign subsidiary is taken into account for purposes 

of allocating the interest expense of the domestic members of the electing worldwide affiliated 

group for foreign tax credit limitation purposes, the interest expense incurred by a foreign subsidiary is not deductible on a U.S. return. 146 Indirect ownership is determined under the rules of section 958(a)(2) or through applying 

rules similar to those of section 958(a)(2) to stock owned directly or indirectly by domestic partnerships, trusts, or estates. 147See Treas. Reg. sec. 1.904–4(e)(2). 

election, the taxable income of the domestic members of a worldwide affiliated group from sources outside the United States is determined by allocating and apportioning the third-party interest 

expense of those domestic members to foreign-source income in an 

amount equal to the excess (if any) of (1) the worldwide affiliated 

group’s worldwide third-party interest expense multiplied by the 

ratio that the foreign assets of the worldwide affiliated group bears 

to the total assets of the worldwide affiliated group,144 over (2) the 

third-party interest expense incurred by foreign members of the 

group to the extent such interest would be allocated to foreign 

sources if the principles of worldwide interest allocation were applied separately to the foreign members of the group.145

For purposes of the new elective rules based on worldwide 

fungibility, the worldwide affiliated group means all corporations in 

an affiliated group as well as all controlled foreign corporations 

that, in the aggregate, either directly or indirectly,146 would be 

members of such an affiliated group if section 1504(b)(3) did not 

apply (i.e., in which at least 80 percent of the vote and value of the 

stock of such corporations is owned by one or more other corporations included in the affiliated group). Thus, if an affiliated group 

makes this election, the taxable income from sources outside the 

United States of domestic group members generally is determined 

by allocating and apportioning interest expense of the domestic 

members of the worldwide affiliated group as if all of the interest 

expense and assets of 80-percent or greater owned domestic corporations (i.e., corporations that are part of the affiliated group, as 

modified to include insurance companies) and certain controlled 

foreign corporations were attributable to a single corporation. 

Financial institution group election 

Taxpayers are allowed to apply the bank group rules to exclude 

certain financial institutions from the affiliated group for interest 

allocation purposes under the worldwide fungibility approach. The 

rules also provide a one-time ‘‘financial institution group’’ election 

that expands the bank group. At the election of the common parent 

of the pre-election worldwide affiliated group, the interest expense 

allocation rules are applied separately to a subgroup of the worldwide affiliated group that consists of (1) all corporations that are 

part of the bank group, and (2) all ‘‘financial corporations.’’ For this 

purpose, a corporation is a financial corporation if at least 80 percent of its gross income is financial services income (as described 

in section 904(d)(2)(D)(ii) and the regulations thereunder) that is 

derived from transactions with unrelated persons.147 For these purposes, items of income or gain from a transaction or series of transVerDate Mar 15 2010 04:55 Jul 03, 2012 Jkt 074837 PO 00000 Frm 00666 Fmt 6601 Sfmt 6601 E:\HR\OC\HR557.XXX HR557

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148 As originally enacted under AJCA, the worldwide interest allocation rules were effective 

for taxable years beginning after December 31, 2008. However, section 3093 of the Housing and 

Economic Recovery Act of 2008, Pub. L. No. 110–289, delayed the implementation of the worldwide interest allocation rules for two years, until taxable years beginning after December 31, 

2010; section 15 of the Worker, Homeownership, and Business Assistance Act of 2009, Pub. L. 

No. 111–92, delayed the implementation of the worldwide interest allocation rules for seven 

years, until taxable years beginning after December 31, 2017; and section 551 of the Hiring Incentives to Restore Employment Act, Pub. L. No. 111–126, further delayed implementation of 

the worldwide interest allocation rules for three years, until taxable years beginning after December 31, 2020. 

actions are disregarded if a principal purpose for the transaction or 

transactions is to qualify any corporation as a financial corporation. 

In addition, anti-abuse rules are provided under which certain 

transfers from one member of a financial institution group to a 

member of the worldwide affiliated group outside of the financial 

institution group are treated as reducing the amount of indebtedness of the separate financial institution group. Regulatory authority is provided with respect to the election to provide for the direct 

allocation of interest expense in circumstances in which such allocation is appropriate to carry out the purposes of these rules, to 

prevent assets or interest expense from being taken into account 

more than once, or to address changes in members of any group 

(through acquisitions or otherwise) treated as affiliated under these 

rules. 

Effective date of worldwide interest allocation 

The common parent of the domestic affiliated group must 

make the worldwide affiliated group election. It must be made for 

the first taxable year beginning after December 31, 2020, in which 

a worldwide affiliated group exists that includes at least one foreign corporation that meets the requirements for inclusion in a 

worldwide affiliated group.148 The common parent of the pre-election worldwide affiliated group must make the election for the first 

taxable year beginning after December 31, 2020, in which a worldwide affiliated group includes a financial corporation. Once either 

election is made, it applies to the common parent and all other 

members of the worldwide affiliated group or to all members of the 

financial institution group, as applicable, for the taxable year for 

which the election is made and all subsequent taxable years, unless 

revoked with the consent of the Secretary of the Treasury. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The provision delays the effective date of the worldwide interest allocation rules for one year, until taxable years beginning after 

December 31, 2021. The required dates for making the worldwide 

affiliated group election and the financial institution group election 

are changed accordingly. 

Effective date.—The provision is effective on the date of enactment. 


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CONFERENCE AGREEMENT

The conference agreement does not include the Senate amendment provision. 

PART IV—TAX COMPLEXITY ANALYSIS 

Section 4022(b) of the Internal Revenue Service Reform and 

Restructuring Act of 1998 (the ‘‘IRS Reform Act’’) requires the Joint 

Committee on Taxation (in consultation with the Internal Revenue 

Service and the Department of the Treasury) to provide a tax complexity analysis. The complexity analysis is required for all legislation reported by the Senate Committee on Finance, the House 

Committee on Ways and Means, or any committee of conference if 

the legislation includes a provision that directly or indirectly 

amends the Internal Revenue Code (the ‘‘Code’’) and has widespread applicability to individuals or small businesses. 

The staff of the Joint Committee on Taxation has determined 

that a complexity analysis is not required under section 4022(b) of 

the IRS Reform Act because the bill contains no provisions that 

have ‘‘widespread applicability’’ to individuals or small businesses. 

A. PBGC Premiums (secs. 40221–40222 of the conference 

agreement and ERISA sec. 4006) 

PRESENT LAW

Defined benefit plans subject to ERISA are covered by the Pension Benefit Guaranty Corporation (‘‘PBGC’’) insurance program 

and related premium requirements. 

In the case of a single-employer defined benefit plan, flat-rate premiums apply at a rate of $35.00 per participant for 2012. Single-employer flat-rate premium rates are indexed for inflation. 

If a single-employer defined benefit plan has unfunded vested benefits, variable-rate premiums also apply at a rate of $9 per 

$1,000 of unfunded vested benefits divided by the number of participants. Variable-rate premiums are not indexed for inflation. For 

purposes of determining variable-rate premiums, unfunded vested 

benefits are equal to the excess (if any) of (1) the plan’s funding 

target for the year, as determined under the minimum funding 

rules, but taking into account only vested benefits, over (2) the fair 

market value of plan assets. In determining the plan’s funding target for this purpose, the interest rates used are segment rates determined as under the minimum funding rules, but determined on 

a monthly basis, rather than using a 24-month average of corporate 

bond rates. 

In the case of a multiemployer defined benefit plan, flat-rate premiums apply at a rate of $9.00 per participant for 2012. Multiemployer flat-rate premium rates are indexed for inflation and are 

expected to increase to $10 for 2013. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

No provision. 


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149 ERISA sec. 4002(a). 

CONFERENCE AGREEMENT

The conference agreement increases PBGC premiums for single-employer plans and multiemployer plans. 

Single-employer plan flat-rate premiums are increased to $42 

per participant for 2013 and $49 per participant for 2014 with indexing thereafter. 

For plan years beginning after 2012, the rate for variable-rate 

premiums ($9 per $1,000 of unfunded vested benefits) is indexed 

and the per-participant variable-rate premium is subject to a limit. 

The limit is $400 for 2013 with indexing thereafter. In addition, the 

rate for variable-rate premiums per $1,000 of unfunded vested benefits is increased by $4 for 2014 and another $5 for 2015. These increases are applied to the rate applicable for the preceding year 

(that is, $9 as indexed for the preceding year per $1,000 of unfunded vested benefits) and indexing continues to apply thereafter. 

Multiemployer plan flat-rate premiums are increased by $2 per 

participant for 2013. 

B. Improvements of PBGC (secs. 40231–40234 of the conference 

agreement and ERISA sec. 4002, new sec. 4004 and sec. 4005)— 

Draft of 6/27/12, 9:00 PM 

PRESENT LAW

The Pension Benefit Guaranty Corporation (‘‘PBGC’’), which 

was created by the Employee Retirement Income Security Act of 

1974 (‘‘ERISA’’), insures benefits provided under defined benefit 

plans covered by ERISA, collects premiums with respect to such 

plans, and manages assets and pays benefits with respect to certain terminated plans. PBGC’s purposes are to encourage the continuation and maintenance of voluntary private defined benefit 

plans, provide timely and uninterrupted payment of pension benefits to participants and beneficiaries, and maintain premiums at 

the lowest level consistent with carrying out its obligations under 

ERISA.149

PBGC is administered by a director, who is appointed by the 

President with the advice and consent of the Senate. PBGC’s board 

of directors consists of the Secretary of the Treasury, the Secretary 

of Labor, and the Secretary of Commerce, with the Secretary of 

Labor serving as chair. An advisory committee has been established for the purpose of advising the PBGC as to various policies 

and procedures. ERISA contains general provisions as to the board 

of directors and advisory committee. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

No provision. 


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CONFERENCE AGREEMENT

PBGC governance improvement 

The conference agreement expands the ERISA provisions relating to the PBGC board of directors, advisory committee, director 

and other PBGC officials. 

With respect to the board of directors, the conference agreement addresses timing and procedures for meetings (including a 

joint meeting with the advisory committee). It also ensures that the 

PBGC inspector general has direct access to the board, clarifies the 

role of the General Counsel, and provides authority to the board to 

hire its own employees, experts and consultants as may be required 

to enable the board to perform its duties. The conference agreement includes specific rules on conflicts of interest with respect to 

the board of directors and the director of PBGC and provides for 

the PBGC to have a risk management officer. It further clarifies 

that the PBGC board of directors is ultimately responsible for overseeing PBGC and that the director is directly accountable to the 

board of directors and can be removed by the board of directors or 

the president. It also sets the director’s term at five years unless 

removed before the expiration of the term by the President or the 

board of directors. 

The conference agreement states the sense of Congress that (1) 

the board of directors should form committees, including an audit 

committee and an investment committee composed of at least two 

members, to enhance the overall effectiveness of the board, and (2) 

the advisory committee should provide the board with policy recommendations regarding changes to the law that would be beneficial to the PBGC or the voluntary private pension system. 

The conference agreement also directs the PBGC, not later 

than 90 days after enactment, to contract with the National Academy of Public Administration to conduct a study of the PBGC to 

include (1) a review of governance structures of organizations (governmental and nongovernmental) that are analogous to the PBGC 

and (2) recommendations with respect to various topics relating to 

the board of directors, such as composition, procedures, and policies 

to enhance Congressional oversight. The results of the study are to 

be reported within a year of initiation of the study to the Committee on Health, Education, Labor, and Pensions and Committee 

on Finance of the Senate and the Committee on Education and the 

Workforce and Committee on Ways and Means of the House of 

Representatives. 

Participant and plan sponsor advocate 

The conference agreement establishes a new Participant and 

Plan Sponsor Advocate. The Advocate is chosen by the Board of Directors from the candidates nominated by the advisory committee. 

This individual will act as a liaison between the corporation and 

participants in terminated pension plans. The Advocate will ensure 

that participants receive everything they are entitled to under the 

law. The Advocate will also provide plan sponsors with assistance 

in resolving disputes with the corporation. Each year, the Advocate 

will provide a report on their activities to the Committee on 

Health, Education, Labor, and Pensions and Committee on Finance 


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of the Senate, the Committee on Education and the Workforce of 

the House of Representatives, and the Committee on Ways and 

Means of the House of Representatives summarizing the issues 

raised by participants and plan sponsors and making recommendations for changes to improve the system. 

Quality control procedures for the PBGC 

The conference agreement states that the PBGC will contract 

with an outside agency (such as the Social Security Administration) 

to conduct an annual review of the Corporation’s Single-Employer 

and Multiemployer Pension Insurance Modeling Systems (‘‘PIMS’’). 

The first reviews will be initiated no later than 3 months after the 

enactment of this Act. 

The conference agreement also states that the PBGC will make 

its own efforts to develop review policies to examine actuarial work, 

management, and record keeping. Finally, the conference agreement instructs the PBGC to provide a specific report addressing 

outstanding recommendations made by the Office of the Inspector 

General (‘‘OIG’’) relating to the Policy, Research, and Analysis Department and the Benefits Administration and Payment Department. 

Line of credit repeal 

The conference agreement repeals section 4005(c) of ERISA, 

which provides authority for the PBGC to issue notes or other obligations in an amount up to $100,000,000. 

Natural resource provisions 

Secure rural schools 

The conference report includes Senate language that extends 

by one year, through fiscal year 2012, the Secure Rural Schools 

program. The program funds county outlays for public schools, road 

improvement and maintenance projects, and forest restoration and 

improvement projects in and around National Forests. The conference report clarifies that funds for eligible Title III projects 

under the program must be obligated by the end of the following 

fiscal year but not necessarily initiated. 

Payment-in-lieu of taxes 

The conference report also includes Senate language to extend 

by one year, through fiscal year 2013, full funding for the Payment 

in Lieu of Taxes program. The program provides federal payments 

to local governments to help offset losses in property taxes due to 

nontaxable federal land within their boundaries. 

Gulf coast restoration 

The conference report modifies a Senate provision related to 

Gulf Coast restoration known as the Resources and Ecosystems 

Sustainability, Tourism Opportunities and Revived Economies of 

the Gulf Coast States Act of 2012 (RESTORE Act). The provision 

establishes the Gulf Coast Restoration Trust Fund and places in 

the Trust Fund 80% of all civil penalties paid by responsible parties in connection with the Deepwater Horizon oil spill. Funding 


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may be used to invest in projects and activities to restore the longterm health of the coastal ecosystem and local economies in the 

Gulf Coast Region, which includes the states of Mississippi, Louisiana, Alabama, Florida, and Texas. A portion of the funds will be 

allocated directly and equally to the five Gulf Coast states for ecological and economic recovery along the coast. A portion will be provided to the Gulf Coast Ecosystem Restoration Council established 

by the bill to develop and fund a comprehensive plan for the restoration of Gulf Coast ecosystems. A portion will be allocated 

among the states using an impact-based formula to implement 

state plans that have been approved by the Council. Finally, a portion of the fines will be allocated to a Gulf Coast ecosystem restoration, science, observation, monitoring and technology program and 

for grants to nongovernmental entities for the establishment of 

Gulf Coast centers of excellence. 

Phased retirement 

PRESENT LAW

Under current law, Federal agencies may offer part-time employment to retirement-eligible workers, but the employee may not 

begin receiving accrued pension benefits. Currently, Federal employees face one of three choices upon reaching retirement age: (1) 

voluntarily retire and collect an annuity based on the pension computation formula, (2) continue to work full time, in most cases increasing the number of service years used in calculating their pension, or (3) voluntarily retire and return to Federal employment as 

a reemployed annuitant. As a result, most experienced Federal employees elect to retire. 

Under Internal Revenue Code section 72(t), certain distributions from a qualified retirement plan prior to age 591⁄2 are subject 

to an additional tax of 10 percent of the taxable amount of the distribution. 

HOUSE BILL

No provision. 

SENATE AMENDMENT

The Senate amendment provides the Office of Personnel Management the authority to establish a phased retirement program 

for qualified Federal employees. The amendment allows Federal 

employees to retire from a portion of their full time employment 

and receive a prorated pension for that service. During phased retirement, Federal employees may work 20 to 80 percent of their 

full-time schedule and continue to receive a prorated salary and 

pension credit for the time worked. At least 20 percent of the time 

worked must be used to mentor new employees. When the phased 

retiree fully retires, their annuity would be adjusted, increasing the 

employee’s lifetime retirement income. The Senate amendment excludes from eligibility law enforcement officers, firefighters, nuclear 

materials couriers, air traffic controllers, customs and border protection officers, or members of the Capital Police or Supreme Court 

Police. 


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CONFERENCE REPORT

The conference report follows the Senate amendment with 

three changes. First, Postal Service employees are exempted from 

the requirement to spend 20 percent of their time mentoring. Second, the provision provides that certain law enforcement officers 

such as Customs and Border Protection Officers hired before 2008 

(when they were granted law-enforcement type status which makes 

them ineligible for phased retirement under the Senate Amendment because they are subject to mandatory retirement) are eligible for phased retirement. Finally, the conference agreement provides an exception to the additional tax under section 72(t) of the 

Internal Revenue Code for distributions from federal retirement 

plans to qualified phased retirees. 

Effective date.—The provision is effective on the date the implementing regulations are issued by the Director of the Office of 

Personnel Management. 

Technical correction to the disaster recovery FMAP provision 

The ACA included a provision known as the ‘disaster-recovery 

FMAP’ designed to help states adjust to drastic changes in FMAP 

following a statewide disaster. Once triggered, the policy would 

provide assistance for as many as seven years following the disaster, as long as the state continued to experience an FMAP drop 

of more than three percentage points. The Middle Class Tax Relief 

and Job Creation Act of 2012 corrected the formula. This policy 

moves the effective date to October 1, 2012 and adjusts the formula 

for fiscal year 2013. 

Ocean freight differential 

The United States provides humanitarian food aid to developing countries. This assistance is subject to an additional cargo 

preference, which requires 75% of food assistance be shipped from 

U.S. flagged vessels. The Maritime Administration at the Department of Transportation is required to reimburse the U.S. agencies 

that sponsor food aid shipments for the increased costs associated 

with the U.S. flag shipping requirement. This proposal would reduce to 50% the incremental ocean freight differential, which would 

reduce the amount of quarterly payments made by Maritime Administration at the Department of Transportation. 

Abandoned mine land 

This proposal would cap abandoned mine land (AML) reclamation payments to states that have completed all high-priority abandoned coal mine reclamation projects. Under this proposal, payments to those states (certified states) would be capped at $15 million annually. 

Pursuant to the order of the House on April 25, 2012, the 

Speaker appointed the following conferees from the Committee on Transportation and Infrastructure for consideration of the House bill (except section 141) and the Senate 

amendment (except secs. 1801, 40102, 40201, 40202, 

40204, 40205, 40305, 40307, 40309, 40312, 100112, 


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100114, and 100116), and modifications committed to conference: 

JOHN MICA, DON YOUNG, JOHN DUNCAN, BILL SHUSTER, SHELLEY MOORE CAPITO, RICK CRAWFORD, JAIME HERRERA BEUTLER, LARRY BUCSHON, RICHARD HANNA, STEVE SOUTHERLAND, 

JAMES LANKFORD, 

REID RIBBLE, 

NICK RAHALL, 

PETER DEFAZIO, 

JERRY COSTELLO, 

ELEANOR HOLMES NORTON, JERROLD NADLER, 

CORRINE BROWN, 

ELIJAH CUMMINGS, LEONARD BOSWELL, TIM BISHOP, As additional conferees from the Committee on Commerce, 

for consideration of sec. 142 and titles II and V of the 

House bill, and secs. 1113, 1201, 1202, subtitles B, C, D, 

and E of title I of Division C, secs. 32701, 32705, 32710, 

32713, 40101, and 40301 of the Senate amendment, and 

modifications committed to conference: 

FRED UPTON, 

ED WHITFIELD, HENRY WAXMAN, 

As additional conferees from the Committee on Natural 

Resources, for consideration of secs. 123, 142, 204, and titles III and VI of the House bill, and sec. 1116, subtitles 

C, F, and G of title I of Division A, sec. 33009, titles VI 

and VII of Division C, sec. 40101, subtitles A and B of title 

I of Division F, and sec. 100301 of the Senate amendment, 

and modifications committed to conference: 

DOC HASTINGS, 

ROB BISHOP, 

ED MARKEY, 

As additional conferees from the Committee on Science, 

Space, and Technology for consideration of secs. 121, 123, 

136, and 137 of the House bill, and sec. 1534, subtitle F 

of title I of Division A, secs. 20013, 20014, 20029, 31101, 

31103, 31111, 31204, 31504, 32705, 33009, 34008, and Division E of the Senate amendment, and modifications committed to conference: 

RALPH HALL, CHIP CRAVAACK, EDDIE BERNICE JOHNSON, As additional conferees from the Committee on Ways and 

Means, for consideration of secs. 141 and 142 of the House 


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bill, and secs. 1801, 40101, 40102, 40201, 40202, 40204, 

40205, 40301, 40307, 40309, 40314, 100112, 100114, and 

100116 of the Senate amendment, and modifications committed to conference: 

DAVE CAMP, 

PAT TIBERI, 

EARL BLUMENAUER, 

Managers on the Part of the House. 

BARBARA BOXER, 

MAX BAUCUS, 

JOHN ROCKEFELLER, 

DICK DURBIN, 

TIM JOHNSON, 

CHUCK SCHUMER, 

BILL NELSON, 

ROBERT MENENDEZ, 

JAMES INHOFE, 

DAVID VITTER, 

ORRIN HATCH, 

RICHARD SHELBY, 

KAY BAILEY HUTCHISON, 

JOHN HOEVEN, Managers on the Part of the Senate. 

From the Committee on Transportation and Infrastructure, for consideration of the House bill (except section 

141) and the Senate amendment (except secs. 1801, 40102, 

40201, 40202, 40204, 40205, 40305, 40307, 40309–40312, 

100112–100114, and 100116), and modifications committed 

to conference: 

JOHN L. MICA, 

DON YOUNG, 

JOHN J. DUNCAN, Jr., 

BILL SHUSTER, 

SHELLEY MOORE CAPITO, 

ERIC A. ‘‘RICK’’ CRAWFORD, 

JAIME HERRERA BEUTLER, 

LARRY BUCSHON, 

RICHARD L. HANNA, 

STEVE SOUTHERLAND II, 

JAMES LANKFORD, 

REID J. RIBBLE, 

From the Committee on Energy and Commerce, for consideration of sec. 142 and titles II and V of the House bill, 

and secs. 1113, 1201, 1202, subtitles B, C, D, and E of title 

I of Division C, secs. 32701–32705, 32710, 32713, 40101, 

and 40301 of the Senate amendment, and modifications 

committed to the conference: 

FRED UPTON, ED WHITFIELD, 

HENRY A. WAXMAN, From the Committee on Natural Resources, for consideration of secs. 123, 142, 204, and titles III and VI of the 

House bill, and sec. 1116, subtitles C, F, and G of title I 


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670 

of Division A, sec. 33009, titles VI and VII of Division C, 

sec. 40101, subtitles A and B of title I of Division F, and 

sec. 100301 of the Senate amendment, and modifications 

committed to conference: 

DOC HASTINGS, ROB BISHOP, From the Committee on Science, Space, and Technology for 

consideration of secs. 121, 123, 136, and 137 of the House 

bill, and sec. 1534, subtitle F of title I of Division A, secs. 

20013, 20014, 20029, 31101, 31103, 31111, 31204, 31504, 

32705, 33009, 34008, and Division E of the Senate amendment, and modifications committed to conference: 

RALPH M. HALL, 

CHIP CRAVAACK, 

From the Committee on Ways and Means, for consideration of secs. 141 and 142 of the House bill, and secs. 1801, 

40101, 40102, 40201, 40202, 40204, 40205, 40301–40307, 

40309–40314, 100112–100114, and 100116 of the Senate 

amendment, and modifications committed to conference: 

DAVE CAMP, 

PATRICK J. TIBERI, Managers on the Part of the House. 

BARBARA BOXER, 

MAX BAUCUS, 

JOHN D. ROCKEFELLER IV, 

RICHARD J. DURBIN, (with the 

exception of: Div. A, Title I, 

§ 1538—Asian Carp and Div. 

F, Title II, § 100206—Residual 

Risk) 

TIM JOHNSON, 

CHARLES E. SCHUMER, 

BILL NELSON, 

ROBERT MENENDEZ, 

JAMES M. INHOFE, 

DAVID VITTER, 

RICHARD C. SHELBY, 

KAY BAILEY HUTCHISON, 

Managers on the Part of the Senate. 

Æ 


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