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[House Report 112-557]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES                 
 2d Session                                                     112-557
                                 SENATE                          
_______________________________________________________________________

                                 MAP-21

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4348

                 June 28, 2012.--Ordered to be printed

                                   ______

                   U.S. GOVERNMENT PRINTING OFFICE

 74-837                   WASHINGTON : 2012

                            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
    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

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.
    (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.

                       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.

                    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.
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.
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.

                     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.

               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.
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.

             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 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 
        innovation 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 in 
                surface transportation-related businesses of 
                women business 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 certifying 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);
            (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;
            (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 
Transportation 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 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 design-related 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'';
                    (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 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, cross-jurisdictional 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--
                            ``(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:

``Sec. 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 map submitted by the Secretary of 
                Transportation to Congress with the report 
                entitled `Pulling Together: The National 
                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.
    ``(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 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)--
                            ``(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 I-11.''.
    (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''.
            (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 ``National 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 Federal-aid 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:

``Sec. 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 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:
                            ``(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 
                        apportionment.--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 appropriate 
                        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.
                    ``(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
                    ``(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:

``Sec. 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 144, of bridges and 
                tunnels on the National Highway System, and 
                inspection and evaluation of other highway 
                infrastructure assets on the National Highway 
                System, including 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 
                        access-controlled 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 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 
                        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 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 third-party mitigation arrangements, 
                such as--
                            ``(i) the purchase of credits from 
                        commercial mitigation banks;
                            ``(ii) the establishment and 
                        management of agency-sponsored 
                        mitigation banks; and
                            ``(iii) the purchase of credits or 
                        establishment of in-lieu 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 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 in-lieu 
        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:

``Sec. 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--
                    ``(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 standards 
                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)--
                            ``(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 Roadways.--
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 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--
                    ``(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 
Federal-aid 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 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 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 
Population.--
            ``(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 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:

``Sec. 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 off Federal-aid highways, including 
        tribally owned and Federally 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--
                    ``(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 Federal-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;
                    ``(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 safety-related 
                        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 thereafter 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 risk-based 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:

``Sec. 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 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 railway-highway 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 
                        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.--
                    ``(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;
                    ``(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-State-owned 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 transportation-related 
                        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
                            ``(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;
                    ``(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 non-State-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 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--
                    ``(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.
            ``(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 data-supported 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
                            (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 cost-effective 
                        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 cost-effective 
                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)--
                    (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:
    ``(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 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 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 Outcomes 
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--
                            (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:

``Sec. 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:
                    ``(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 government 
                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;
                            ``(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.
            ``(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:

``Sec. 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.--
            ``(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 designation 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;
                    ``(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.''.
    (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;
            (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:

``Sec. 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.--
            ``(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.--
                    ``(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.
                    ``(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.

``Sec. 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 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;
                    ``(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.--
                            ``(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 
        inventory.--
                    ``(A) In general.--The Secretary of the 
                Interior, in cooperation with the Secretary, 
                shall maintain a comprehensive national 
                inventory of tribal transportation facilities 
                that are eligible for assistance under the 
                tribal transportation program.
                    ``(B) Transportation facilities included in 
                the inventory.--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.--
                    ``(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:
                            ``(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 tribal 
                                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 
                                                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.
            ``(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 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 subparagraph (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.--
            ``(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 multiple-pipe 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.

``Sec. 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 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.--
                    ``(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.
            ``(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.

``Sec. 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
                            ``(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 
                1\1/2\ 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.
                    ``(B) 20 percent of the available funding 
                for use in those States that do not contain at 
                least 1\1/2\ 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.
            ``(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 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 non-Federal 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;
                    ``(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 
Facilities.--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:
                    ``(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:

``Sec. 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 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.
    ``(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
                            (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;
                            (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.
                    (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.

                   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:

``Sec. 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 
        organization.--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 develop long-
        range transportation plans and transportation 
        improvement programs through a performance-driven, 
        outcome-based 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.--
                    ``(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--
                    ``(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 
        multiple 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.
                    ``(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 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 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 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 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 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
                                    ``(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;
                            ``(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 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 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
                                    ``(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 
                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 20 percent 
                        of the funds attributable to the 
                        metropolitan planning area of the 
                        metropolitan planning organization 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 
        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:

``Sec. 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 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 
Implementation 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
                    ``(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 targets.--
                                    ``(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 targets.--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, 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 
                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 
                        (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).
            ``(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 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.).
                    ``(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 with populations of less than 50,000 
                individuals on the National 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.
    ``(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 
Management 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, 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:

``Sec. 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.
    ``(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;
                                    ``(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.''.
    (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;
                            (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 
        delivery.--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--
            (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--
                    ``(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.
            ``(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;
                                    ``(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 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).
                            ``(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-
                                        of-date 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
                                    ``(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 information 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 
        decisionmaking.--
                    ``(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.
                            ``(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 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 office 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
            (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 a covered project under this subsection, 
        the Secretary shall consult, 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:

``Sec. 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.
            ``(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 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 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:

``Sec. 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 that involve monitoring predicted impacts 
        over time and adjusting 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
            (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,''.
    (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.''.

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:

``Sec. 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, 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 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.
    (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--
            (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.
            (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
                    (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
                    (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 year-round.
                    (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.
            (3) Periodic updates.--The Secretary shall 
        periodically update the survey under this subsection.
    (d) Electric Vehicle and Natural Gas Vehicle 
Infrastructure.--
            (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
            (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.--
                    ``(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
                    (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:
            ``(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 Persons.--
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 
Thereafter.--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
                    (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 unit-pay 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 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--
                                    ``(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--
                    ``(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 summary 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:
            ``(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, long-term 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 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 
non-Federal 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:

``Sec. 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--
            (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;
                    ``(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.--
                            ``(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 
                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 determined 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:
    ``(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;
                            ``(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:

``Sec. 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--
            (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.
                    (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)--
                            (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, 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
            (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 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''.

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.
    (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 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.

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 System.--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 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
                    (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
                    (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 Rights-of-
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 right-of-way on the Interstate 
        System to accommodate construction 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''.

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--
            (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 this 
                section, to the Gulf Coast States in equal 
                shares for expenditure 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
                                    ``(II) 25 percent shall be 
                                provided directly to 
                                nondisproportionately impacted 
                                counties within the State.
                            ``(ii) Nondisproportionately 
                        impacted counties.--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 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.
                                            ``(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 expenses.--
                                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.
                    ``(J) Previously approved projects and 
                programs.--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 non-Federal 
                        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.
                    ``(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 
                        procedures.--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 
                                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;
                                    ``(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 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 committee 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 restoration 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 
                                section 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.
                                    ``(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 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.--
                            ``(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 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:
            (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 
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 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)).
    (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:

``Sec. 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.
            ``(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 
        `investment-grade 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 
        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;
                    ``(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 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.

``Sec. 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 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 
        programs.--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) 33\1/3\ 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--
                    ``(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 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).

``Sec. 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 
        construction 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.
            ``(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) 1\1/2\ 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 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.--
                            ``(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.

``Sec. 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.
            ``(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 investment-grade 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.
                    ``(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
                    ``(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).

``Sec. 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.

``Sec. 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.

``Sec. 607. Regulations

    ``The Secretary may promulgate such regulations as the 
Secretary determines to be appropriate to carry out this 
chapter.

``Sec. 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.
            ``(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.

``Sec. 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 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:
            (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:

``Sec. 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:

``Sec. 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;
                    ``(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
                            ``(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--
                            ``(i) consisting of short-range 
                        planning and management activities and 
                        projects for improving coordination 
                        among public transportation and other 
                        transportation 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'--
                    ``(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.
            ``(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:

``Sec. 5303. 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 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, 
        outcome-based 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 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.
                    ``(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
                    ``(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 
                        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 targets.--
                                    ``(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 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, 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.
                            ``(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.
            ``(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 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 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 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.--
                    ``(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 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 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.
    ``(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 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
                            (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:

``Sec. 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 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).
                    ``(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 applicable, 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 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.--
                    ``(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 
                        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.--
                            ``(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.--
            ``(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 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 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.''.

SEC. 20007. URBANIZED AREA FORMULA GRANTS.

    Section 5307 of title 49, United States Code, is amended to 
read as follows:

``Sec. 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;
            ``(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 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 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 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:

``Sec. 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--
                    ``(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 
        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--
                                    ``(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 
                activities 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 
                        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.--
                            ``(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.
    ``(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 cost-effective 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 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.
            ``(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.
            ``(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, 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 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 
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.
                            ``(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;
                                            ``(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 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 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
                    ``(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).
            ``(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
                    (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:

``Sec. 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.);
                    ``(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 
                organizations.--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 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.
                    ``(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--
                            ``(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.
            ``(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:

``Sec. 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--
                            ``(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.
                    ``(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 
                population 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 nonurbanized 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 
                        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 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.
    ``(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 
                        low-income 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 an individual whose family 
                income is at or below 100 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.
            ``(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:

``Sec. 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.--
            ``(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;
                    ``(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.
                            ``(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
                            ``(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:

``Sec. 5314. Technical assistance and standards development

    ``(a) Technical Assistance and Standards Development.--
            ``(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 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:

``Sec. 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 Transportation.--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.--
            (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;
                    (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.

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:

``Sec. 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.
    ``(b) Innovative Public Transportation Workforce 
Development 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;
                            ``(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:

``Sec. 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--
                    ``(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.
    ``(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.--
                    ``(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 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 
        report.--
                    ``(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 against goods to which this 
                subsection applies that are produced 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.
            ``(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 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:

``Sec. 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.--
            ``(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 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.
            (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 preference 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:

``Sec. 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).
            ``(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:

``Sec. 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;
                    ``(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 
        drafting 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;
                    ``(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.
                    ``(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.
                            ``(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;
                                    ``(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);
            ``(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 Security.--
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.
    ``(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 
        section, to establish a program of alcohol and 
        controlled substances 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 purposes of establishing 
                and enforcing a program to improve 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:

``Sec. 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 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 passengers 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 directly 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 Recipients.--
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 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
                            ``(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:

``Sec. 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.--
            ``(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 the number of 
                fixed guideway vehicle revenue miles 
                attributable to the urbanized area, as 
                established by the Secretary, 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 apportioned 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:

``Sec. 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 
                $258,300,000 for fiscal year 2014 shall be 
                available to provide 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 Deployment 
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.
            ``(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.
    ``(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:

``Sec. 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 
        factors.--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;
                    ``(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.
    (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.
``[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):
            (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 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.''.
    (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 within 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 
                defined.--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--
                            ``(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
                                    ``(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;
                            ``(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;
                    ``(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.
    ``(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 
                `alcohol-impaired 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.
                    ``(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:

``Sec. 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)).
                    ``(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
                            ``(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 concerning the 
                        proper use and installation of child 
                        restraints, 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;
                    ``(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.
            ``(2) Federal share.--The Federal share of the 
        costs of activities funded using amounts from grants 
        under this subsection 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 low-range 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;
                            ``(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 
        mandatory 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 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 
        driving.--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;
                    ``(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--
                            ``(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 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;
                            ``(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;
                                    ``(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.
                    ``(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
            (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.
            ``(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.
    (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:

``Sec. 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 inserting ``$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;
            ``(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

``Sec. 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.

``Sec. 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 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 
Developments.--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 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.

``Sec. 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 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
                    ``(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.
    (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--
                    ``(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 
                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:

``Sec. 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 
        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.
                            ``(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 
                agreements.--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 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--
                    (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 Committee 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
            (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 Vehicles 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:

``Sec. 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 
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).
    (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.
            (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 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.
            (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
                            ``(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 on-duty 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 
                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
                            ``(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
            (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:

``Sec. 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);
            ``(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,'';
            (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 additional 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, 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 Fitness 
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 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.--
            (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''.
                    (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 laboratory-
                        based 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:

``Sec. 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
                    ``(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.
            ``(2) Measures to preserve confidentiality of 
        personal 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, self-certification, 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;
                            ``(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 
Certificates.--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
            (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 recommendations 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:

``Sec. 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.''.

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.
                    ``(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 
        General.'';
            (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 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
            (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:

``Sec. 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.
            ``(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 
        administration 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.
            ``(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.
            ``(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 
        clearinghouse.--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 return-to-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;
                    ``(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 
        reporting 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.
                    ``(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.--
            ``(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--
            ``(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''.
    (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 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''.

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.'';
            (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 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:
                    ``(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 SAFETEA-LU 
(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 Operators.--
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 
Implementation.--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.--
            (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 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 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) 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 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--
                    ``(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 Motorcoach 
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 
        performance ratings of motorcoach services and 
        operations.--
                    (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 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.

       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 from other surface 
                transportation modes to principal arterial 
                routes and National Highway System intermodal 
                connectors 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.
    (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''.
    (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:

``Sec.  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 authority 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:

``Sec. 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
            ``(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:
    ``(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 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 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--
                            ``(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.--
                    ``(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.
            ``(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
            ``(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.''.
    (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:
    ``(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''.
            (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
                    (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);
                    (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 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 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 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 
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:

``Sec. 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.
    (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)--
                    (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--
            (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--
            (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.

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:

``Sec. 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).
    ``(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 Restoration 
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--
                            (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:
                    ``(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 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)--
                            (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).''.
            (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:

------------------------------------------------------------------------
                                                                The
                                           The applicable    applicable
        ``If the calendar year is:             minimum        maximum
                                           percentage is:    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.
                    (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:

------------------------------------------------------------------------
                                                                The
                                           The applicable    applicable
        ``If the calendar year is:             minimum        maximum
                                           percentage is:    percentage
                                                                is:
------------------------------------------------------------------------
2012.....................................             90%        110%
2013.....................................             85%        115%
2014.....................................             80%        120%
2015.....................................             75%        125%
After 2015...............................             70%        130%.''.
------------------------------------------------------------------------

            (2) Disclosure of effect of segment rate 
        stabilization 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 MAP-21, 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 
                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 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 substituted 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--
                    ``(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.--
            (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:
    ``(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.''.
    (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.

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--
                    ``(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 Systems.--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, 
approved 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''.
    (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--
                                    (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 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 Connection 
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--
                    (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 benefits''.
            (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)--
                            (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) 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.
            (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
                    ``(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;
                            (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
                    (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--
                            ``(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).
                            ``(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
                                    ``(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 of cash prizes 
                                        awarded and claimed 
                                        were allocated 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:

``Sec. 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.--
                    ``(A) In general.--The Secretary shall 
                carry out research and development activities 
                from an integrated perspective 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;
                            ``(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;
                            ``(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.
            ``(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 Secretary shall carry out 
                research and development activities 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 Turner-Fairbank 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.
            ``(7) Turner-fairbank highway research center.--
                    ``(A) In general.--The Secretary shall 
                continue to operate in the Federal Highway 
                Administration a Turner-Fairbank 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 quality-controlled 
                        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;
                    ``(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 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 
                        consist of amounts provided to a 
                        recipient under subsection (e) or 
                        section 505, up to 100 percent of the 
                        non-Federal 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.
            ``(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.
    (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:

``Sec. 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 
                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;
                            ``(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 highway 
                                or public transportation 
                                research;
                                    ``(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.
            ``(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 1\1/2\ 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.

``Sec. 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.

``Sec. 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;
                            ``(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 out modeling, 
                        economic assessment, and program 
                        assessment 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.

``Sec. 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.

``Sec. 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--
            ``(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, deposited in the Research and 
        Innovative Technology Administration's general fund 
        account, and remain available until expended.

``Sec. 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.

``Sec. 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, and private agencies and 
        instrumentalities, subject to the conditions 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.

``Sec. 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.
                    ``(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.

``Sec. 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.

``Sec. 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.

``Sec. 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.

``Sec. 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--
            ``(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).

``Sec. 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.

``Sec. 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.--
            ``(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 1\1/2\ 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.
            ``(2) Cooperation, grants, contracts, and 
        agreements.--Notwithstanding any other provision of 
        law, the Administrator 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.''.

         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:

``Sec. 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:

``Sec. 514. Goals and purposes

    ``(a) Goals.--The goals of the intelligent transportation 
system program include--
            ``(1) enhancement of surface transportation 
        efficiency and facilitation of intermodalism and 
        international trade to enable existing facilities to 
        meet a significant portion of future transportation 
        needs, including public access to employment, goods, 
        and services and to reduce regulatory, financial, and 
        other transaction costs to public agencies and system 
        users;
            ``(2) achievement of national transportation safety 
        goals, including 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 security-related 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:

``Sec. 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.--
            ``(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;
                    ``(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:

``Sec. 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;
            ``(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 health-related 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:

``Sec. 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 consultation 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:

``Sec. 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--
                    ``(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)--
                            (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.

              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:

``Sec. 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-full-time 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
                    ``(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 full-time 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
            ``(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--
                    ``(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
            (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:

``Sec. 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-full-time 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 full-time 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 
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.
    ``(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 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.

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
                    (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).

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 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,
                                    ``(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 Increases.--
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 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
                            ``(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.''.

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.
    ``(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 
                premiums.--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 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 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 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--
                                    (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
            (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.
            (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
                    (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)--
                    (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
                    ``(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.
                    ``(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 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
            (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 
Dodd-Frank 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 State and representatives of insurers for the 
purposes of consolidating 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-Bereuter-Blumenauer 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 representatives of the national flood 
insurance program who participate 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.
    (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
                    (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.
                    ``(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:
            ``(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 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 Insurance 
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) of 
subsection (b)(1) that are not used in any fiscal year shall 
continue 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.
            (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.--
            (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 respect to any 
                single structure, up to a total amount 
                (including 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 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
                    (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);
                                    (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 National Flood Insurance Program, that has begun 
        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 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 limit for fiscal year 2006 
        of $417,000, as established under section 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;
                    (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--
            (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
                            (vii) taking into consideration the 
                        recommendations under clauses (i) 
                        through (iii), recommend approaches 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);
                    (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 `` 1A`; and' 1A'' 
                        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
                    (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--
            (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;
            (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.

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''.

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 claims-paying 
        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 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
                            ``(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;
                            (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 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 departmental accreditation, and for capital 
        expenditures specifically 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;
                            ``(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 with other agencies and 
                entities having particular capacities, 
                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 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;
            (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;
                    (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 
requirement 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.
            ``(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 Assessment.--
            ``(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 post-storm 
                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.
            ``(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 post-storm assessment developed under this 
        subsection.
    ``(c) Establishment of a Protocol for Post-storm 
Assessment.--
            ``(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 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
                    ``(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:

``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.
    ``(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 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 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.
    ``(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--
            (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--
                            ``(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.''.

             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 
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''.

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 beginning 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
            (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'';
                    (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 
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).
    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,
                                   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, 
                                       Sec. 1538--Asian Carp and Div. 
                                       F, Title II, Sec. 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.
     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.
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 movement. It calls for the development of a National 
Freight Strategic 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 long-term 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 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.
      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.
      Funding for the ``Public Transportation on Indian 
Reservations'' 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 Development 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 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 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.
      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 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 within 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 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 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 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 non-motorized 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. 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 
permits 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 long-range, 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 moneys 
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\
---------------------------------------------------------------------------

    \1\Except where otherwise stated, all section references are to the 
Internal Revenue Code of 1986, as amended (the ``Code'').
---------------------------------------------------------------------------

              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.
---------------------------------------------------------------------------
    \2\This 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.
---------------------------------------------------------------------------
Highway motor fuels taxes
      The Highway Trust Fund motor fuels tax rates are as 
follows:\3\
---------------------------------------------------------------------------
    \3\Secs. 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)).

------------------------------------------------------------------------
 
------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \5\Sec. 4051.
---------------------------------------------------------------------------
      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
---------------------------------------------------------------------------
    \6\Sec. 4071.
---------------------------------------------------------------------------
      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.)
---------------------------------------------------------------------------
    \7\Sec. 4481.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \8\Sec. 4482(c)(4) and (d).
---------------------------------------------------------------------------

         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.
---------------------------------------------------------------------------
    \9\Sec. 9503. The Highway Trust Fund statutory provisions were 
placed in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
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 the Mass Transit Account are funding sources for specific 
programs.
---------------------------------------------------------------------------
    \10\Sec. 9503(e)(1).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \11\The 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.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \12\Sec. 9503(b)(1).
---------------------------------------------------------------------------

                               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\
---------------------------------------------------------------------------
    \13\The 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 provision extends the motor fuel taxes, and all three 
non-fuel excise taxes at their current rates through September 
30, 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.
---------------------------------------------------------------------------
    \14\The Leaking Underground Storage Tank Trust Fund financing rate 
of 0.1 cent per gallon also is extended through September 30, 2015.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \15\The 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.
---------------------------------------------------------------------------
      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 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, off-highway 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.
---------------------------------------------------------------------------
    \16\Secs. 4041, 4042, and 4081.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \17\For Federal budget scorekeeping purposes, the LUST Trust Fund 
tax, like other excise taxes dedicated to trust funds, is assumed to be 
permanent.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \18\Pub. L. No. 109-58.
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                               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 cent of the 0.1 cent LUST Trust Fund financing rate 
is dedicated to the Highway Trust Fund.\19\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
      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\
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    \20\Sec. 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.
    \21\Sec. 302 of ERISA.
    \22\Pub. 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.
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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. 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.
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    \23\The 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 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.
---------------------------------------------------------------------------
      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.
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    \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.
---------------------------------------------------------------------------
            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\
---------------------------------------------------------------------------
    \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 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 shortfall amortization 
installments are positive. If the shortfall amortization 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.
---------------------------------------------------------------------------
    \27\Any amortization base relating to a funding waiver for a 
previous year is also eliminated.
---------------------------------------------------------------------------
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 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\
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    \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.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \31\Code sec. 436 and ERISA sec. 206(g).
    \32\Code sec. 411(d)(6) and ERISA sec. 204(g).
---------------------------------------------------------------------------
            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.
---------------------------------------------------------------------------
    \33\Code sec. 417(e) and ERISA sec. 205(g).
---------------------------------------------------------------------------
      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).
---------------------------------------------------------------------------
    \34\Sec. 415(b).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \35\Sec. 404.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \36\Sec. 420. Under present law, a qualified transfer is not 
permitted after December 31, 2013.
---------------------------------------------------------------------------
            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 rules, 
but determined on a monthly basis, rather than using a 24-month 
average of corporate bond rates.
---------------------------------------------------------------------------
    \37\ERISA sec. 4006.
    \38\Flat-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.
---------------------------------------------------------------------------
      In certain circumstances, the contributing sponsor of a 
single-employer 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.
---------------------------------------------------------------------------
    \39\ERISA sec. 4010.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \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;
---------------------------------------------------------------------------
      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.

                            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:

------------------------------------------------------------------------
                                    The applicable      The applicable
    If the calendar year is:            minimum             maximum
                                    percentage is:      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 variable-rate premiums.
---------------------------------------------------------------------------
    \41\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.
---------------------------------------------------------------------------
      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 failing 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 single-employer 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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
      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 $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
---------------------------------------------------------------------------
    \45\In addition, a reversion may occur only if the terms of the 
plan so provide.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \46\Sec. 401(h) and Treas. Reg. sec. 1.401-1(b).
    \47\Treas. Reg. sec. 1.72-15(h).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
    \48\The 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.
    \49\Sec. 420.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \50\The value of plan assets for this purpose is the lesser of fair 
market value or actuarial value.
---------------------------------------------------------------------------
      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 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\
---------------------------------------------------------------------------
    \51\Pub. 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.
---------------------------------------------------------------------------
            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).
---------------------------------------------------------------------------
    \53\The 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).
---------------------------------------------------------------------------
      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 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.
---------------------------------------------------------------------------
    \54\Sec. 79.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \55\Treas. Reg. sec. 1.401-1(b).
    \56\Secs. 72(m)(3) and 79(b)(3).
---------------------------------------------------------------------------

                               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 
group-term 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 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 59\1/2\.\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 is no 
exception for annuity payments that commence before separating 
from service with the employer.
---------------------------------------------------------------------------
    \57\Sec. 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.
---------------------------------------------------------------------------

                               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.
---------------------------------------------------------------------------
    \58\See the explanation for section 100111 of the Conference 
agreement for a description of the 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 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\
---------------------------------------------------------------------------
    \59\Sec. 5701.
---------------------------------------------------------------------------
            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 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.

                          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\
---------------------------------------------------------------------------
    \60\Sec. 265(a).
    \61\See Rev. Proc. 72-18, 1972-1 C.B. 740.
---------------------------------------------------------------------------
            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.
---------------------------------------------------------------------------
    \62\Sec. 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).
---------------------------------------------------------------------------
            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).
---------------------------------------------------------------------------
    \63\Sec. 265(b)(3).
    \64\Secs. 265(b)(3)(A), 291(a)(3) and 291(e)(1).
---------------------------------------------------------------------------
      A ``qualified small issuer'' is an issuer that reasonably 
anticipates that the amount of tax-exempt obligations that it 
will issue 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.
---------------------------------------------------------------------------
    \65\Sec. 265(b)(3)(C).
    \66\Sec. 265(b)(3)(E).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \67\Sec. 265(b)(3)(F).
---------------------------------------------------------------------------
            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 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\
---------------------------------------------------------------------------
    \68\Sec. 57(a)(5).
    \69\Sec. 56(g)(4)(B).
---------------------------------------------------------------------------
      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 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 
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.
---------------------------------------------------------------------------
    \70\Secs. 132(f), 3121(b)(2), and 3306(b)(16) and 3401(a)(19).
---------------------------------------------------------------------------
      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 transportation 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.
---------------------------------------------------------------------------
    \71\Pub. L. No. 111-5.
    \72\Pub. L. No. 111-312.
---------------------------------------------------------------------------
      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 (``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\
---------------------------------------------------------------------------
    \73\Sec. 141(e).
    \74\Sec. 142(a).
---------------------------------------------------------------------------
      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 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.
---------------------------------------------------------------------------
    \75\Sec. 4064.
---------------------------------------------------------------------------
      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 ``non-passenger'' 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.
---------------------------------------------------------------------------
    \76\Sec. 4064(b)(1)(A).
---------------------------------------------------------------------------

                               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 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.
---------------------------------------------------------------------------
    \77\``Passport Act of 1926,'' 22 U.S.C. sec. 211a, et seq.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \78\Sec. 6103.
    \79\Sec. 6103(l)(3).
    \80\Sec. 6103(l)(22).
---------------------------------------------------------------------------

                            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-in-compromise, 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.

 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\
---------------------------------------------------------------------------
    \81\Sec. 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.
    \83\Sec. 6334.
    \84\Sec. 6331(d).
    \85\Sec. 6330. The notice and the hearing are referred to 
collectively as the CDP requirements.
    \86\Secs. 6331(e) and 6343.
    \87\Sec. 6321.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \88\Secs. 6331(d)(3), 6861.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \89\Sec. 6330(f).
---------------------------------------------------------------------------
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 obligations. 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.
---------------------------------------------------------------------------
    \90\Pub. L. No. 105-34.
    \91\Sec. 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.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \92\Government Accountability Office, Medicare: Thousands of 
Medicare Providers Abuse the Federal Tax System (GAO-08-618), June 13, 
2008.
    \93\Ibid., p. 4.
    \94\Ibid.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \95\Medicare Improvement for Patients and Providers Act of 2008, 
Pub. L. No. 110-275, sec. 189.
---------------------------------------------------------------------------

                            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.

                          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\
---------------------------------------------------------------------------
    \96\Secs. 355 and 368(a)(1)(D). Section 355 imposes requirements 
for a qualified spin-off, split-off, 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 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).
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \97\Sec. 361(a).
    \98\Sec. 361(b).
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \99\The last sentence of sec. 361(b)(3).
    \100\Sec. 357(c) and the last sentence of sec. 361(b)(3).
---------------------------------------------------------------------------
      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 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.''
---------------------------------------------------------------------------
    \101\Section 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)).
---------------------------------------------------------------------------
      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.

  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\
---------------------------------------------------------------------------
    \102\Sec. 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.
    \104\Sec. 6334.
    \105\Sec. 6331(d).
    \106\Sec. 6330. The notice and the hearing are referred to 
collectively as the CDP requirements.
    \107\Secs. 6331(e) and 6343.
    \108\Sec. 6321.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \109\Secs. 6331(d)(3) and 6861.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \110\Sec. 6330(f).
---------------------------------------------------------------------------
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 Account 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.
---------------------------------------------------------------------------
    \111\5 U.S.C. sec. 8437(e)(3).
---------------------------------------------------------------------------

                            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.
---------------------------------------------------------------------------
    \112\Sec. 168.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
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 governmental unit and franchise rights, is 
amortized over a 15-year period.\115\
---------------------------------------------------------------------------
    \115\Secs. 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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \116\Sec. 141.
    \117\Sec. 147(e).
---------------------------------------------------------------------------

                               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\
---------------------------------------------------------------------------
    \118\Sec. 7701(e).
---------------------------------------------------------------------------
      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.

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'').
---------------------------------------------------------------------------
    \119\Secs. 3101 and 3111.
    \120\Sec. 1401.
---------------------------------------------------------------------------

                               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\
---------------------------------------------------------------------------
    \121\Sec. 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 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).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \122\Sec. 101(a)(2).
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \123\Sec. 101(a)(2)(A).
    \124\Sec. 101(a)(2)(B).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \125\2009-21 I.R.B. 1029.
---------------------------------------------------------------------------
      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 long-term capital gain, and in 
determining the gain, the basis of the contract is not reduced 
by the cost of insurance.
---------------------------------------------------------------------------
    \126\2009-21 I.R.B. 1031.
---------------------------------------------------------------------------

                               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 
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.

                          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.
---------------------------------------------------------------------------
    \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.''
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \130\See, 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.
---------------------------------------------------------------------------
      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 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 high-level 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.
---------------------------------------------------------------------------
    \132\Section 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.
---------------------------------------------------------------------------
      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 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\
---------------------------------------------------------------------------
    \133\Hiring Incentives to Restore Employment Act (``HIRE''), Pub. 
L. No. 111-147 (2010).
    \134\Subtitle 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 as provided by the Secretary, the gross receipts and gross 
withdrawals or payments from the account.
    \136\The information reporting requirement under the HIRE Act 
generally applies to payments made after December 31, 2012.
---------------------------------------------------------------------------
      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\
---------------------------------------------------------------------------
    \137\TIEAs 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.
    \138\Overview of the OECD's Work on International Tax Evasion (A 
note by the OECD Secretariat), p. 3, March 23, 2009.
---------------------------------------------------------------------------

                               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 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.
---------------------------------------------------------------------------
    \139\However, exceptions to the fungibility principle are provided 
in particular cases, some of which are described below.
---------------------------------------------------------------------------
      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 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\
---------------------------------------------------------------------------
    \140\Temp. Treas. Reg. sec. 1.861-11T(d)(4).
    \141\Sec. 864(e)(5)(C).
    \142\Sec. 864(e)(5)(D).
---------------------------------------------------------------------------
      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 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\
---------------------------------------------------------------------------
    \143\Pub. L. No. 108-357, sec. 401.
    \144\For 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.
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
            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 transactions are 
disregarded if a principal purpose for the transaction or 
transactions is to qualify any corporation as a financial 
corporation.
---------------------------------------------------------------------------
    \147\See Treas. Reg. sec. 1.904-4(e)(2).
---------------------------------------------------------------------------
      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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

                               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.

                          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.

                          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\
---------------------------------------------------------------------------
    \149\ERISA sec. 4002(a).
---------------------------------------------------------------------------
      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.

                          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 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 may be used to invest in projects and activities to 
restore the long-term 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 
59\1/2\ 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.

                           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, 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 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 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, 
                                       Sec. 1538--Asian Carp and Div. 
                                       F, Title II, Sec. 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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