In the Senate of the United States, 

May 19, 2004. 

Resolved, That the bill from the House of Representatives (H.R. 3550) entitled ‘‘An Act to authorize funds for 

Federal-aid highways, highway safety programs, and transit 

programs, and for other purposes.’’, do pass with the following 

AMENDMENT: 

Strike out all after the enacting clause and insert: 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Safe, Accountable, Flexible, and Efficient Transportation 

4 Equity Act of 2004’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents of this 

2 Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. General definitions. 

Sec. 3. Definitions for title 23. 

TITLE I—FEDERAL-AID HIGHWAYS 

Subtitle A—Funding 

Sec. 1101. Authorization of appropriations. 

Sec. 1102. Obligation ceiling. 

Sec. 1103. Apportionments. 

Sec. 1104. Equity bonus programs. 

Sec. 1105. Revenue aligned budget authority. 

Subtitle B—New Programs 

Sec. 1201. Infrastructure performance and maintenance program. 

Sec. 1202. Future of surface transportation system. 

Sec. 1203. Freight transportation gateways; freight intermodal connections. 

Sec. 1204. Construction of ferry boats and ferry terminal and maintenance facilities; coordination of ferry construction and maintenance. 

Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway. 

Sec. 1206. State-by-State comparison of highway construction costs. 

Subtitle C—Finance 

Sec. 1301. Federal share. 

Sec. 1302. Transfer of highway and transit funds. 

Sec. 1303. Transportation Infrastructure Finance and Innovation Act Amendments. 

Sec. 1304. Facilitation of international registration plans and international fuel 

tax agreements. 

Sec. 1305. National Commission on Future Revenue Sources to Support the 

Highway Trust Fund and Finance the Needs of the Surface 

Transportation System. 

Sec. 1306. State infrastructure banks. 

Sec. 1307. Public-private partnerships pilot program. 

Sec. 1308. Wagering. 

Subtitle D—Safety 

Sec. 1401. Highway safety improvement program. 

Sec. 1402. Operation lifesaver. 

Sec. 1403. License suspension. 

Sec. 1404. Bus axle weight exemption. 

Sec. 1405. Safe routes to schools program. 

Sec. 1406. Purchases of equipment. 

Sec. 1407. Workzone safety. 

Sec. 1408. Worker injury prevention and free flow of vehicular traffic. 

Sec. 1409. Identity authentication standards. 

Sec. 1410. Open container requirements. 
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Subtitle E—Environmental Planning and Review 

CHAPTER 1—TRANSPORTATION PLANNING

Sec. 1501. Integration of natural resource concerns into State and metropolitan 

transportation planning. 

Sec. 1502. Consultation between transportation agencies and resource agencies in 

transportation planning. 

Sec. 1503. Integration of natural resource concerns into transportation project 

planning. 

Sec. 1504. Public involvement in transportation planning and projects. 

Sec. 1505. Project mitigation. 

CHAPTER 2—TRANSPORTATION PROJECT DEVELOPMENT PROCESS

Sec. 1511. Transportation project development process. 

Sec. 1512. Assumption of responsibility for categorical exclusions. 

Sec. 1513. Surface transportation project delivery pilot program. 

Sec. 1514. Parks, recreation areas, wildlife and waterfowl refuges, and historic 

sites. 

Sec. 1515. Regulations. 

CHAPTER 3—MISCELLANEOUS

Sec. 1521. Critical real property acquisition. 

Sec. 1522. Planning capacity building initiative. 

Subtitle F—Environment 

Sec. 1601. Environmental restoration and pollution abatement; control of 

invasive plant species and establishment of native species. 

Sec. 1602. National scenic byways program. 

Sec. 1603. Recreational trails program. 

Sec. 1604. Exemption of Interstate System. 

Sec. 1605. Standards. 

Sec. 1606. Use of high occupancy vehicle lanes. 

Sec. 1607. Bicycle transportation and pedestrian walkways. 

Sec. 1608. Idling reduction facilities in Interstate rights-of-way. 

Sec. 1609. Toll programs. 

Sec. 1610. Federal reference method. 

Sec. 1611. Addition of particulate matter areas to CMAQ. 

Sec. 1612. Addition to CMAQ-eligible projects. 

Sec. 1613. Improved interagency consultation. 

Sec. 1614. Evaluation and assessment of CMAQ projects. 

Sec. 1615. Synchronized planning and conformity timelines, requirements, and 

horizon. 

Sec. 1616. Transition to new air quality standards. 

Sec. 1617. Reduced barriers to air quality improvements. 

Sec. 1618. Air quality monitoring data influenced by exceptional events. 

Sec. 1619. Conforming amendments. 

Sec. 1620. Highway stormwater discharge mitigation program. 

Sec. 1621. Exemption from certain hazardous materials transportation requirements. 

Sec. 1622. Funds for rebuilding fish stocks. 
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Subtitle G—Operations 

Sec. 1701. Transportation systems management and operations. 

Sec. 1702. Real-time system management information program. 

Sec. 1703. Contracting for engineering and design services. 

Sec. 1704. Off-duty time for drivers of commercial vehicles. 

Sec. 1705. Designation of transportation management areas. 

Subtitle H—Federal-Aid Stewardship 

Sec. 1801. Future Interstate System routes. 

Sec. 1802. Stewardship and oversight. 

Sec. 1803. Design-build contracting. 

Sec. 1804. Program efficiencies—finance. 

Sec. 1805. Set-asides for interstate discretionary projects. 

Sec. 1806. Federal lands highways program. 

Sec. 1807. Highway bridge program. 

Sec. 1808. Appalachian development highway system. 

Sec. 1809. Multistate corridor program. 

Sec. 1810. Border planning, operations, technology, and capacity program. 

Sec. 1811. Puerto Rico highway program. 

Sec. 1812. National historic covered bridge preservation. 

Sec. 1813. Transportation and community and system preservation program. 

Sec. 1814. Parking pilot programs. 

Sec. 1815. Interstate oasis program. 

Sec. 1816. Tribal-State road maintenance agreements. 

Sec. 1817. National forest system roads. 

Sec. 1818. Territorial highway program. 

Sec. 1819. Magnetic levitation transportation technology deployment program. 

Sec. 1820. Donations and credits. 

Sec. 1821. Disadvantaged business enterprises. 

Sec. 1822. Emergency relief. 

Sec. 1823. Priority for pedestrian and bicycle facility enhancement projects. 

Sec. 1824. The Delta Regional Authority. 

Sec. 1825. Multistate international corridor development program. 

Sec. 1826. Authorization of contract authority for States with Indian Reservations. 

Subtitle I—Technical Corrections 

Sec. 1901. Repeal or update of obsolete text. 

Sec. 1902. Clarification of date. 

Sec. 1903. Inclusion of requirements for signs identifying funding sources in title 

23. 

Sec. 1904. Inclusion of Buy America requirements in title 23. 

Sec. 1905. Technical amendments to nondiscrimination section. 

TITLE II—TRANSPORTATION RESEARCH 

Subtitle A—Funding 

Sec. 2001. Authorization of appropriations. 

Sec. 2002. Obligation ceiling. 

Sec. 2003. Notice. 
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Subtitle B—Research and Technology 

Sec. 2101. Research and technology program. 

Sec. 2102. Study of data collection and statistical analysis efforts. 

Sec. 2103. Centers for surface transportation excellence. 

Sec. 2104. Motorcycle crash causation study grants. 

Sec. 2105. Transportation technology innovation and demonstration program 

Subtitle C—Intelligent Transportation System Research 

Sec. 2201. Intelligent transportation system research and technical assistance 

program. 

TITLE III—PUBLIC TRANSPORTATION 

Sec. 3001. Short title. 

Sec. 3002. Amendments to title 49, United States Code; updated terminology. 

Sec. 3003. Policies, findings, and purposes. 

Sec. 3004. Definitions. 

Sec. 3005. Metropolitan transportation planning. 

Sec. 3006. Statewide transportation planning. 

Sec. 3007. Transportation management areas. 

Sec. 3008. Private enterprise participation. 

Sec. 3009. Urbanized area formula grants. 

Sec. 3010. Planning programs. 

Sec. 3011. Capital investment program. 

Sec. 3012. New freedom for elderly persons and persons with disabilities. 

Sec. 3013. Formula grants for other than urbanized areas. 

Sec. 3014. Research, development, demonstration, and deployment projects. 

Sec. 3015. Transit cooperative research program. 

Sec. 3016. National research programs. 

Sec. 3017. National transit institute. 

Sec. 3018. Bus testing facility. 

Sec. 3019. Bicycle facilities. 

Sec. 3020. Suspended light rail technology pilot project. 

Sec. 3021. Crime prevention and security. 

Sec. 3022. General provisions on assistance. 

Sec. 3023. Special provisions for capital projects. 

Sec. 3024. Contract requirements. 

Sec. 3025. Project management oversight and review. 

Sec. 3026. Project review. 

Sec. 3027. Investigations of safety and security risk. 

Sec. 3028. State safety oversight. 

Sec. 3029. Sensitive security information. 

Sec. 3030. Terrorist attacks and other acts of violence against public transportation systems. 

Sec. 3031. Controlled substances and alcohol misuse testing. 

Sec. 3032. Employee protective arrangements. 

Sec. 3033. Administrative procedures. 

Sec. 3034. Reports and audits. 

Sec. 3035. Apportionments of appropriations for formula grants. 

Sec. 3036. Apportionments for fixed guideway modernization. 

Sec. 3037. Authorizations. 

Sec. 3038. Apportionments based on growing States formula factors. 

Sec. 3039. Job access and reverse commute grants. 

Sec. 3040. Over-the-road bus accessibility program. 
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Sec. 3041. Alternative transportation in parks and public lands. 

Sec. 3042. Obligation ceiling. 

Sec. 3043. Adjustments for the Surface Transportation Extension Act of 2003. 

Sec. 3044. Disadvantaged business enterprise. 

Sec. 3045. Intermodal passenger facilities. 

TITLE IV—SURFACE TRANSPORTATION SAFETY 

Sec. 4001. Short title. 

Subtitle A—Highway Safety 

PART I—HIGHWAY SAFETY GRANT PROGRAM

Sec. 4101. Short title; amendment of title 23, United States Code. 

Sec. 4102. Authorization of appropriations. 

Sec. 4103. Highway safety programs. 

Sec. 4104. Highway safety research and outreach programs. 

Sec. 4105. National Highway Safety Advisory Committee technical correction. 

Sec. 4106. Occupant protection grants. 

Sec. 4107. School bus driver training. 

Sec. 4108. Emergency medical services. 

Sec. 4109. Repeal of authority for alcohol traffic safety programs. 

Sec. 4110. Impaired driving program. 

Sec. 4111. State traffic safety information system improvements. 

Sec. 4112. NHTSA accountability. 

PART II—SPECIFIC VEHICLE SAFETY-RELATED RULINGS

Sec. 4151. Amendment of title 49, United States Code. 

Sec. 4152. Vehicle crash ejection prevention. 

Sec. 4153. Vehicle backover avoidance technology study. 

Sec. 4154. Vehicle backover data collection. 

Sec. 4155. Aggressivity and incompatibility reduction standard. 

Sec. 4156. Improved crashworthiness. 

Sec. 4157. 15-passenger vans. 

Sec. 4158. Additional safety performance criteria for tires. 

Sec. 4159. Safety belt use reminders. 

Sec. 4160. Missed deadlines reports. 

Sec. 4161. Grants for improving child passenger safety programs. 

Sec. 4162. Authorization of appropriations. 

PART III—MISCELLANEOUS PROVISIONS

Sec. 4171. Driver licensing and education. 

Sec. 4172. Amendment of Automobile Information Disclosure Act. 

Sec. 4173. Child safety. 

Sec. 4174. Safe intersections. 

Sec. 4175. Study on increased speed limits. 

Subtitle B—Motor Carrier Safety and Unified Carrier Registration 

PART I—ADMINISTRATIVE MATTERS

Sec. 4201. Short title; amendment of title 49, United States Code. 

Sec. 4202. Required completion of overdue reports, studies, and rulemakings. 

Sec. 4203. Contract authority. 
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PART II—MOTOR CARRIER SAFETY

Sec. 4221. Minimum guarantee. 

Sec. 4222. Authorization of appropriations. 

Sec. 4223. Motor carrier safety grants. 

Sec. 4224. CDL working group. 

Sec. 4225. CDL learner’s permit program. 

Sec. 4226. Hobbs Act. 

Sec. 4227. Penalty for denial of access to records. 

Sec. 4228. Medical program. 

Sec. 4229. Operation of commercial motor vehicles by individuals who use insulin 

to treat diabetes mellitus. 

Sec. 4230. Financial responsibility for private motor carriers. 

Sec. 4231. Increased penalties for out-of-service violations and false records. 

Sec. 4232. Elimination of commodity and service exemptions. 

Sec. 4233. Intrastate operations of interstate motor carriers. 

Sec. 4234. Authority to stop commercial motor vehicles. 

Sec. 4235. Revocation of operating authority. 

Sec. 4236. Pattern of safety violations by motor carrier management. 

Sec. 4237. Motor carrier research and technology program. 

Sec. 4238. Review of commercial zone exemption provision. 

Sec. 4239. International cooperation. 

Sec. 4240. Performance and registration information system management. 

Sec. 4241. Commercial vehicle information systems and networks deployment.

Sec. 4242. Outreach and education. 

Sec. 4243. Operation of restricted property-carrying units on national highway 

system. 

Sec. 4244. Operation of longer combination vehicles on national highway system. 

Sec. 4245. Application of safety standards to certain foreign motor carriers. 

Sec. 4246. Background checks for Mexican and Canadian drivers hauling hazardous materials. 

Sec. 4247. Exemption of drivers of utility service vehicles. 

Sec. 4248. Operation of commercial motor vehicles transporting agricultural commodities and farm supplies. 

Sec. 4249. Safety performance history screening. 

Sec. 4250. Compliance review audit. 

PART III—UNIFIED CARRIER REGISTRATION

Sec. 4261. Short title. 

Sec. 4262. Relationship to other laws. 

Sec. 4263. Inclusion of motor private and exempt carriers. 

Sec. 4264. Unified carrier registration system. 

Sec. 4265. Registration of motor carriers by States. 

Sec. 4266. Identification of vehicles. 

Sec. 4267. Use of UCR agreement revenues as matching funds. 

Sec. 4268. Clerical amendments. 

Subtitle C—Household Goods Movers 

Sec. 4301. Short title; amendment of title 49, United States Code. 

Sec. 4302. Findings; sense of Congress. 

Sec. 4303. Definitions. 

Sec. 4304. Payment of rates. 

Sec. 4305. Household goods carrier operations. 

Sec. 4306. Liability of carriers under receipts and bills of lading. 
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HR 3550 EAS 

Sec. 4307. Dispute settlement for shipments of household goods. 

Sec. 4308. Enforcement of regulations related to transportation of household 

goods. 

Sec. 4309. Working group for development of practices and procedures to enhance 

Federal-State relations. 

Sec. 4310. Consumer handbook on DOT website. 

Sec. 4311. Information about household goods transportation on carriers’ 

websites. 

Sec. 4312. Consumer complaints. 

Sec. 4313. Review of liability of carriers. 

Sec. 4314. Civil penalties relating to household goods brokers. 

Sec. 4315. Civil and criminal penalty for failing to give up possession of household goods. 

Sec. 4316. Progress report. 

Sec. 4317. Additional registration requirements for motor carriers of household 

goods. 

Subtitle D—Hazardous Materials Transportation Safety and Security 

Sec. 4401. Short title. 

Sec. 4402. Amendment of title 49, United States Code. 

PART I—GENERAL AUTHORITIES ON TRANSPORTATION OF HAZARDOUS

MATERIALS

Sec. 4421. Purpose. 

Sec. 4422. Definitions. 

Sec. 4423. General regulatory authority. 

Sec. 4424. Limitation on issuance of hazmat licenses. 

Sec. 4425. Representation and tampering. 

Sec. 4426. Transporting certain highly radioactive material. 

Sec. 4427. Hazmat employee training requirements and grants. 

Sec. 4428. Registration. 

Sec. 4429. Shipping papers and disclosure. 

Sec. 4430. Rail tank cars. 

Sec. 4431. Highway routing of hazardous material. 

Sec. 4432. Unsatisfactory safety ratings. 

Sec. 4433. Air transportation of ionizing radiation material. 

Sec. 4434. Training curriculum for the public sector. 

Sec. 4435. Planning and training grants; emergency preparedness fund. 

Sec. 4436. Special permits and exclusions. 

Sec. 4437. Uniform forms and procedures. 

Sec. 4438. International uniformity of standards and requirements. 

Sec. 4439. Hazardous materials transportation safety and security. 

Sec. 4440. Enforcement. 

Sec. 4441. Civil penalties. 

Sec. 4442. Criminal penalties. 

Sec. 4443. Preemption. 

Sec. 4444. Relationship to other laws. 

Sec. 4445. Judicial review. 

Sec. 4446. Authorization of appropriations. 

Sec. 4447. Additional civil and criminal penalties. 
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PART II—OTHER MATTERS

Sec. 4461. Administrative authority for research and special programs administration. 

Sec. 4462. Mailability of hazardous materials. 

Sec. 4463. Criminal matters. 

Sec. 4464. Cargo inspection program. 

Sec. 4465. Information on hazmat registrations. 

Sec. 4466. Report on applying hazardous materials regulations to persons who reject hazardous materials. 

PART III—SANITARY FOOD TRANSPORTATION

Sec. 4481. Short title. 

Sec. 4482. Responsibilities of the Secretary of Health and Human Services. 

Sec. 4483. Department of Transportation requirements. 

Sec. 4484. Effective date. 

Subtitle E—Recreational Boating Safety Programs 

Sec. 4501. Short title. 

PART I—FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS

Sec. 4521. Amendment of Federal aid in Fish Restoration Act. 

Sec. 4522. Authorization of appropriations. 

Sec. 4523. Division of annual appropriations. 

Sec. 4524. Maintenance of projects. 

Sec. 4525. Boating infrastructure. 

Sec. 4526. Requirements and restrictions concerning use of amounts for expenses 

for administration. 

Sec. 4527. Payments of funds to and cooperation with Puerto Rico, the District 

of Columbia, Guam, American Samoa, the Commonwealth of the 

Northern Mariana Islands, and the Virgin Islands. 

Sec. 4528. Multistate conservation grant program. 

PART II—CLEAN VESSEL ACT AMENDMENTS

Sec. 4541. Grant program. 

PART III—RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS

Sec. 4561. State matching funds requirement. 

Sec. 4562. Availability of allocations. 

Sec. 4563. Authorization of appropriations for State recreational boating safety 

programs. 

Sec. 4564. Maintenance of effort for State recreational boating safety programs. 

PART IV—MISCELLANEOUS

Sec. 4581. Technical correction to Homeland Security Act. 

Subtitle F—Rail Transportation 

PART I—AMTRAK

Sec. 4601. Authorization of appropriations. 

Sec. 4602. Establishment of Build America Corporation. 

Sec. 4603. Federal bonds for transportation infrastructure. 
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HR 3550 EAS 

PART II—RAILROAD TRACK MODERNIZATION

Sec. 4631. Short title. 

Sec. 4632. Capital grants for railroad track. 

Sec. 4633. Regulations. 

Sec. 4634. Study of grant-funded projects. 

Sec. 4635. Authorization of appropriations. 

PART III—OTHER RAIL TRANSPORTATION-RELATED PROVISIONS

Sec. 4661. Capital grants for rail line relocation projects. 

Sec. 4662. Use of congestion mitigation and air quality improvement funds for 

Boston to Portland passenger rail service. 

TITLE V—HIGHWAY REAUTHORIZATION AND EXCISE TAX 

SIMPLIFICATION 

Sec. 5000. Short title; amendment of 1986 code. 

Subtitle A—Trust Fund Reauthorization 

Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust Fund 

expenditure authority and related taxes. 

Sec. 5002. Full accounting of funds received by the Highway Trust Fund. 

Sec. 5003. Modification of adjustments of apportionments. 

Subtitle B—Volumetric Ethanol Excise Tax Credit 

Sec. 5101. Short title. 

Sec. 5102. Alcohol and biodiesel excise tax credit and extension of alcohol fuels 

income tax credit. 

Sec. 5103. Biodiesel income tax credit. 

Subtitle C—Fuel Fraud Prevention 

Sec. 5200. Short title. 

PART I—AVIATION JET FUEL

Sec. 5211. Taxation of aviation-grade kerosene. 

Sec. 5212. Transfer of certain amounts from the Airport and Airway Trust Fund 

to the Highway Trust Fund to reflect highway use of jet fuel. 

PART II—DYED FUEL

Sec. 5221. Dye injection equipment. 

Sec. 5222. Elimination of administrative review for taxable use of dyed fuel.

Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures. 

Sec. 5224. Termination of dyed diesel use by intercity buses. 

PART III—MODIFICATION OF INSPECTION OF RECORDS PROVISIONS

Sec. 5231. Authority to inspect on-site records. 

Sec. 5232. Assessable penalty for refusal of entry. 

PART IV—REGISTRATION AND REPORTING REQUIREMENTS

Sec. 5241. Registration of pipeline or vessel operators required for exemption of 

bulk transfers to registered terminals or refineries. 

Sec. 5242. Display of registration. 
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Sec. 5243. Registration of persons within foreign trade zones, etc. 

Sec. 5244. Penalties for failure to register and failure to report. 

Sec. 5245. Information reporting for persons claiming certain tax benefits. 

Sec. 5246. Electronic reporting. 

PART V—IMPORTS

Sec. 5251. Tax at point of entry where importer not registered. 

Sec. 5252. Reconciliation of on-loaded cargo to entered cargo. 

PART VI—MISCELLANEOUS PROVISIONS

Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not in a dieselpowered vehicle or train. 

Sec. 5262. Modification of ultimate vendor refund claims with respect to farming. 

Sec. 5263. Taxable fuel refunds for certain ultimate vendors. 

Sec. 5264. Two-party exchanges. 

Sec. 5265. Modifications of tax on use of certain vehicles. 

Sec. 5266. Dedication of revenues from certain penalties to the Highway Trust 

Fund. 

Sec. 5267. Nonapplication of export exemption to delivery of fuel to motor vehicles removed from United States. 

PART VII—TOTAL ACCOUNTABILITY

Sec. 5271. Total accountability. 

Sec. 5272. Excise tax reporting. 

Sec. 5273. Information reporting. 

Subtitle D—Definition of Highway Vehicle 

Sec. 5301. Exemption from certain excise taxes for mobile machinery. 

Sec. 5302. Modification of definition of off-highway vehicle. 

Subtitle E—Excise Tax Reform and Simplification 

PART I—HIGHWAY EXCISE TAXES

Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund. 

Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland waterway 

barge fuels. 

PART II—AQUATIC EXCISE TAXES

Sec. 5411. Elimination of Aquatic Resources Trust Fund and transformation of 

Sport Fish Restoration Account. 

Sec. 5412. Exemption of LED devices from sonar devices suitable for finding fish. 

Sec. 5413. Repeal of harbor maintenance tax on exports. 

Sec. 5414. Cap on excise tax on certain fishing equipment. 

Sec. 5415. Reduction in rate of tax on portable aerated bait containers. 

PART III—AERIAL EXCISE TAXES

Sec. 5421. Clarification of excise tax exemptions for agricultural aerial applicators and exemption for fixed-wing aircraft engaged in forestry 

operations. 

Sec. 5422. Modification of rural airport definition. 

Sec. 5423. Exemption from ticket taxes for transportation provided by seaplanes. 

Sec. 5424. Certain sightseeing flights exempt from taxes on air transportation. 
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HR 3550 EAS 

PART IV—ALCOHOLIC BEVERAGE EXCISE TAXES

Sec. 5431. Repeal of special occupational taxes on producers and marketers of alcoholic beverages. 

Sec. 5432. Suspension of limitation on rate of rum excise tax cover over to Puerto 

Rico and Virgin Islands. 

PART V—SPORT EXCISE TAXES

Sec. 5441. Custom gunsmiths. 

Sec. 5442. Modified taxation of imported archery products. 

Sec. 5443. Treatment of tribal governments for purposes of Federal wagering excise and occupational taxes. 

PART VI—OTHER PROVISIONS

Sec. 5451. Income tax credit for distilled spirits wholesalers and for distilled spirits in control State bailment warehouses for costs of carrying 

Federal excise taxes on bottled distilled spirits. 

Sec. 5452. Credit for taxpayers owning commercial power takeoff vehicles. 

Sec. 5453. Credit for auxiliary power units installed on diesel-powered trucks. 

Subtitle F—Miscellaneous Provisions 

Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission. 

Sec. 5502. National Surface Transportation Infrastructure Financing Commission. 

Sec. 5503. Treasury study of fuel tax compliance and interagency cooperation. 

Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to include 

funding for studies of supplemental or alternative financing for 

the Highway Trust Fund. 

Sec. 5505. Treasury study of highway fuels used by trucks for non-transportation 

purposes. 

Sec. 5506. Delta regional transportation plan. 

Sec. 5507. Treatment of employer-provided transit and van pooling benefits. 

Sec. 5508. Study of incentives for production of biodiesel. 

Subtitle G—Revenue Offsets 

PART I—LIMITATION ON EXPENSING CERTAIN PASSENGERS AUTOMOBILES

Sec. 5601. Expansion of limitation on depreciation of certain passenger automobiles. 

PART II—PROVISIONS DESIGNED TO CURTAIL TAX SHELTERS

Sec. 5611. Clarification of economic substance doctrine. 

Sec. 5612. Penalty for failing to disclose reportable transaction. 

Sec. 5613. Accuracy-related penalty for listed transactions and other reportable 

transactions having a significant tax avoidance purpose. 

Sec. 5614. Penalty for understatements attributable to transactions lacking economic substance, etc. 

Sec. 5615. Modifications of substantial understatement penalty for nonreportable 

transactions. 

Sec. 5616. Tax shelter exception to confidentiality privileges relating to taxpayer 

communications. 

Sec. 5617. Disclosure of reportable transactions. 

Sec. 5618. Modifications to penalty for failure to register tax shelters. 
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HR 3550 EAS 

Sec. 5619. Modification of penalty for failure to maintain lists of investors. 

Sec. 5620. Modification of actions to enjoin certain conduct related to tax shelters 

and reportable transactions. 

Sec. 5621. Understatement of taxpayer’s liability by income tax return preparer. 

Sec. 5622. Penalty on failure to report interests in foreign financial accounts. 

Sec. 5623. Frivolous tax submissions. 

Sec. 5624. Regulation of individuals practicing before the Department of Treasury. 

Sec. 5625. Penalty on promoters of tax shelters. 

Sec. 5626. Statute of limitations for taxable years for which required listed transactions not reported. 

Sec. 5627. Denial of deduction for interest on underpayments attributable to nondisclosed reportable and noneconomic substance transactions. 

Sec. 5628. Authorization of appropriations for tax law enforcement. 

PART III—OTHER CORPORATE GOVERNANCE PROVISIONS

Sec. 5631. Affirmation of consolidated return regulation authority. 

Sec. 5632. Declaration by chief executive officer relating to Federal annual corporate income tax return. 

Sec. 5633. Denial of deduction for certain fines, penalties, and other amounts. 

Sec. 5634. Disallowance of deduction for punitive damages. 

Sec. 5635. Increase in criminal monetary penalty limitation for the underpayment or overpayment of tax due to fraud. 

Sec. 5636. Doubling of certain penalties, fines, and interest on underpayments related to certain offshore financial arrangements. 

PART IV—ENRON-RELATED TAX SHELTER PROVISIONS

Sec. 5641. Limitation on transfer or importation of built-in losses. 

Sec. 5642. No reduction of basis under section 734 in stock held by partnership 

in corporate partner. 

Sec. 5643. Repeal of special rules for FASITs. 

Sec. 5644. Expanded disallowance of deduction for interest on convertible debt. 

Sec. 5645. Expanded authority to disallow tax benefits under section 269. 

Sec. 5646. Modification of interaction between subpart F and passive foreign investment company rules. 

PART V—PROVISIONS TO DISCOURAGE EXPATRIATION

Sec. 5651. Tax treatment of inverted corporate entities. 

Sec. 5652. Imposition of mark-to-market tax on individuals who expatriate. 

Sec. 5653. Excise tax on stock compensation of insiders in inverted corporations. 

Sec. 5654. Reinsurance of United States risks in foreign jurisdictions. 

Subtitle H—Additional Revenue Provisions 

PART I—ADMINISTRATIVE PROVISIONS

Sec. 5671. Extension of IRS user fees. 

Sec. 5672. Clarification of rules for payment of estimated tax for certain deemed 

asset sales. 

Sec. 5673. Partial payment of tax liability in installment agreements. 

PART II—FINANCIAL INSTRUMENTS

Sec. 5675. Treatment of stripped interests in bond and preferred stock funds, etc. 
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HR 3550 EAS 

Sec. 5676. Application of earnings stripping rules to partnerships and S corporations. 

Sec. 5677. Recognition of cancellation of indebtedness income realized on satisfaction of debt with partnership interest. 

Sec. 5678. Modification of straddle rules. 

Sec. 5679. Denial of installment sale treatment for all readily tradeable debt. 

PART III—CORPORATIONS AND PARTNERSHIPS

Sec. 5680. Modification of treatment of transfers to creditors in divisive reorganizations. 

Sec. 5681. Clarification of definition of nonqualified preferred stock. 

Sec. 5682. Modification of definition of controlled group of corporations 

Sec. 5683. Mandatory basis adjustments in connection with partnership distributions and transfers of partnership interests. 

Sec. 5684. Class lives for utility grading costs. 

Sec. 5685. Consistent amortization of periods for intangibles. 

Subtitle I—Tax-Exempt Financing of Highway Projects and Rail-Truck 

Transfer Facilities 

Sec. 5691. Tax-exempt financing of highway projects and rail-truck transfer facilities. 

Sec. 5692. Addition of vaccines against hepatitis A to list of taxable vaccines. 

Sec. 5693. Addition of vaccines against influenza to list of taxable vaccines. 

Sec. 5694. Extension of amortization of intangibles to sports franchises. 

TITLE VI—TRANSPORTATION DISCRETIONARY SPENDING 

GUARANTEE AND BUDGET OFFSETS 

Sec. 6101. Sense of the Senate on overall Federal budget. 

Sec. 6102. Discretionary spending categories. 

Sec. 6103. Level of obligation limitations. 

TITLE VII—MISCELLANEOUS PROVISIONS 

Sec. 7001. Reimbursement of certain transportation costs incurred by members of 

the United States Armed Forces on rest and recuperation leave. 

TITLE VIII—SOLID WASTE DISPOSAL 

Sec. 8001. Increased use of recovered mineral component in federally funded 

projects involving procurement of cement or concrete. 

Sec. 8002. Use of granular mine tailings. 

1 SEC. 2. GENERAL DEFINITIONS. 

2 In this Act: 

3 (1) DEPARTMENT.—The term ‘‘Department’’ 

4 means the Department of Transportation. 

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

6 the Secretary of Transportation. 
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1 SEC. 3. DEFINITIONS FOR TITLE 23. 

2 Section 101 of title 23, United States Code, is amended 

3 by striking subsection (a) and inserting the following: 

4 ‘‘(a) DEFINITIONS.—In this title: 

5 ‘‘(1) APPORTIONMENT.—The term ‘apportion6 ment’ includes an unexpended apportionment made 

7 under a law enacted before the date of enactment of 

8 the Safe, Accountable, Flexible, and Efficient Trans9 portation Equity Act of 2004. 

10 ‘‘(2) CARPOOL PROJECT.— 

11 ‘‘(A) IN GENERAL.—The term ‘carpool 

12 project’ means any project to encourage the use 

13 of carpools and vanpools. 

14 ‘‘(B) INCLUSIONS.—The term ‘carpool 

15 project’ includes a project— 

16 ‘‘(i) to provide carpooling opportuni17 ties to the elderly and individuals with dis18 abilities; 

19 ‘‘(ii) to develop and implement a sys20 tem for locating potential riders and in21 forming the riders of carpool opportunities; 

22 ‘‘(iii) to acquire vehicles for carpool 

23 use; 

24 ‘‘(iv) to designate highway lanes as 

25 preferential carpool highway lanes; 
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1 ‘‘(v) to provide carpool-related traffic 

2 control devices; and 

3 ‘‘(vi) to designate facilities for use for 

4 preferential parking for carpools. 

5 ‘‘(3) CONSTRUCTION.— 

6 ‘‘(A) IN GENERAL.—The term ‘construction’ 

7 means the supervision, inspection, and actual 

8 building of, and incurring of all costs incidental 

9 to the construction or reconstruction of a high10 way, including bond costs and other costs relat11 ing to the issuance in accordance with section 

12 122 of bonds or other debt financing instruments 

13 and costs incurred by the State in performing 

14 Federal-aid project related audits that directly 

15 benefit the Federal-aid highway program. 

16 ‘‘(B) INCLUSIONS.—The term ‘construction’ 

17 includes— 

18 ‘‘(i) locating, surveying, and mapping 

19 (including the establishment of temporary 

20 and permanent geodetic markers in accord21 ance with specifications of the National 

22 Oceanic and Atmospheric Administration); 

23 ‘‘(ii) resurfacing, restoration, and re24 habilitation; 

25 ‘‘(iii) acquisition of rights-of-way; 
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1 ‘‘(iv) relocation assistance, acquisition 

2 of replacement housing sites, and acquisi3 tion and rehabilitation, relocation, and con4 struction of replacement housing; 

5 ‘‘(v) elimination of hazards of railway 

6 grade crossings; 

7 ‘‘(vi) elimination of roadside obstacles; 

8 ‘‘(vii) improvements that directly fa9 cilitate and control traffic flow, such as— 

10 ‘‘(I) grade separation of intersec11 tions; 

12 ‘‘(II) widening of lanes; 

13 ‘‘(III) channelization of traffic; 

14 ‘‘(IV) traffic control systems; and 

15 ‘‘(V) passenger loading and un16 loading areas; 

17 ‘‘(viii) capital improvements that di18 rectly facilitate an effective vehicle weight 

19 enforcement program, such as— 

20 ‘‘(I) scales (fixed and portable); 

21 ‘‘(II) scale pits; 

22 ‘‘(III) scale installation; and 

23 ‘‘(IV) scale houses; 

24 ‘‘(ix) improvements directly relating to 

25 securing transportation infrastructures for 
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1 detection, preparedness, response, and recov2 ery; 

3 ‘‘(x) operating costs relating to traffic 

4 monitoring, management, and control; 

5 ‘‘(xi) operational improvements; and 

6 ‘‘(xii) transportation system manage7 ment and operations. 

8 ‘‘(4) COUNTY.—The term ‘county’ includes— 

9 ‘‘(A) a corresponding unit of government 

10 under any other name in a State that does not 

11 have county organizations; and 

12 ‘‘(B) in those States in which the county 

13 government does not have jurisdiction over high14 ways, any local government unit vested with ju15 risdiction over local highways. 

16 ‘‘(5) FEDERAL-AID HIGHWAY.— 

17 ‘‘(A) IN GENERAL.—The term ‘Federal-aid 

18 highway’ means a highway eligible for assistance 

19 under this chapter. 

20 ‘‘(B) EXCLUSIONS.—The term ‘Federal-aid 

21 highway’ does not include a highway classified 

22 as a local road or rural minor collector. 

23 ‘‘(6) FEDERAL-AID SYSTEM.—The term ‘Federal24 aid system’ means any of the Federal-aid highway 

25 systems described in section 103. 
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1 ‘‘(7) FEDERAL LANDS HIGHWAY.—The term 

2 ‘Federal lands highway’ means— 

3 ‘‘(A) a forest highway; 

4 ‘‘(B) a recreation road; 

5 ‘‘(C) a public Forest Service road; 

6 ‘‘(D) a park road; 

7 ‘‘(E) a parkway; 

8 ‘‘(F) a refuge road; 

9 ‘‘(G) an Indian reservation road; and 

10 ‘‘(H) a public lands highway. 

11 ‘‘(8) FOREST HIGHWAY.—The term ‘forest high12 way’ means a forest road that is— 

13 ‘‘(A) under the jurisdiction of, and main14 tained by, a public authority; and 

15 ‘‘(B) is open to public travel. 

16 ‘‘(9) FOREST ROAD OR TRAIL.— 

17 ‘‘(A) IN GENERAL.—The term ‘forest road or 

18 trail’ means a road or trail wholly or partly 

19 within, or adjacent to, and serving National 

20 Forest System land that is necessary for the pro21 tection, administration, use, and development of 

22 the resources of that land. 

23 ‘‘(B) INCLUSIONS.—The term ‘forest road or 

24 trail’ includes— 

25 ‘‘(i) a classified forest road; 
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1 ‘‘(ii) an unclassified forest road; 

2 ‘‘(iii) a temporary forest road; and 

3 ‘‘(iv) a public forest service road. 

4 ‘‘(10) FREIGHT TRANSPORTATION GATEWAY.— 

5 ‘‘(A) IN GENERAL.—The term ‘freight trans6 portation gateway’ means a nationally or re7 gionally significant transportation port of entry 

8 or hub for domestic and global trade or military 

9 mobilization. 

10 ‘‘(B) INCLUSIONS.—The term ‘freight trans11 portation gateway’ includes freight intermodal 

12 and Strategic Highway Network connections that 

13 provide access to and from a port or hub de14 scribed in subparagraph (A). 

15 ‘‘(11) HIGHWAY.—The term ‘highway’ in16 cludes— 

17 ‘‘(A) a road, street, and parkway; 

18 ‘‘(B) a right-of-way, bridge, railroad-high19 way crossing, tunnel, drainage structure, sign, 

20 guardrail, and protective structure, in connec21 tion with a highway; and 

22 ‘‘(C) a portion of any interstate or inter23 national bridge or tunnel (including the ap24 proaches to the interstate or international bridge 

25 or tunnel, and such transportation facilities as 
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1 may be required by the United States Customs 

2 Service and the Bureau of Citizenship and Im3 migration Services in connection with the oper4 ation of an international bridge or tunnel), the 

5 cost of which is assumed by a State transpor6 tation department. 

7 ‘‘(12) HIGHWAY SAFETY IMPROVEMENT

8 PROJECT.—The term ‘highway safety improvement 

9 project’ means a project that meets the requirements 

10 of section 148. 

11 ‘‘(13) INDIAN RESERVATION ROAD.— 

12 ‘‘(A) IN GENERAL.—The term ‘Indian res13 ervation road’ means a public road that is lo14 cated within or provides access to an area de15 scribed in subparagraph (B) on which or in 

16 which reside Indians or Alaskan Natives that, as 

17 determined by the Secretary of the Interior, are 

18 eligible for services generally available to Indians 

19 under Federal laws specifically applicable to In20 dians. 

21 ‘‘(B) AREAS.—The areas referred to in sub22 paragraph (A) are— 

23 ‘‘(i) an Indian reservation; 

24 ‘‘(ii) Indian trust land or restricted 

25 Indian land that is not subject to fee title 
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1 alienation without the approval of the Fed2 eral Government; and 

3 ‘‘(iii) an Indian or Alaska Native vil4 lage, group, or community. 

5 ‘‘(14) INTERSTATE SYSTEM.—The term ‘Inter6 state System’ means the Dwight D. Eisenhower Na7 tional System of Interstate and Defense Highways de8 scribed in section 103(c). 

9 ‘‘(15) MAINTENANCE.— 

10 ‘‘(A) IN GENERAL.—The term ‘maintenance’ 

11 means the preservation of a highway. 

12 ‘‘(B) INCLUSIONS.—The term ‘maintenance’ 

13 includes the preservation of— 

14 ‘‘(i) the surface, shoulders, roadsides, 

15 and structures of a highway; and 

16 ‘‘(ii) such traffic-control devices as are 

17 necessary for safe, secure, and efficient use 

18 of a highway. 

19 ‘‘(16) MAINTENANCE AREA.—The term ‘mainte20 nance area’ means an area that was designated as a 

21 nonattainment area, but was later redesignated by the 

22 Administrator of the Environmental Protection Agen23 cy as an attainment area, under section 107(d) of the 

24 Clean Air Act (42 U.S.C. 7407(d)). 
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1 ‘‘(17) NATIONAL FOREST SYSTEM ROAD OR

2 TRAIL.—The term ‘National Forest System road or 

3 trail’ means a forest road or trail that is under the 

4 jurisdiction of the Forest Service. 

5 ‘‘(18) NATIONAL HIGHWAY SYSTEM.—The term 

6 ‘National Highway System’ means the Federal-aid 

7 highway system described in section 103(b). 

8 ‘‘(19) OPERATING COSTS FOR TRAFFIC MONI9 TORING, MANAGEMENT, AND CONTROL.—The term ‘op10 erating costs for traffic monitoring, management, and 

11 control’ includes— 

12 ‘‘(A) labor costs; 

13 ‘‘(B) administrative costs; 

14 ‘‘(C) costs of utilities and rent; 

15 ‘‘(D) costs incurred by transportation agen16 cies for technology to monitor critical transpor17 tation infrastructure for security purposes; and 

18 ‘‘(E) other costs associated with transpor19 tation systems management and operations and 

20 the continuous operation of traffic control, such 

21 as— 

22 ‘‘(i) an integrated traffic control sys23 tem; 

24 ‘‘(ii) an incident management pro25 gram; and 
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1 ‘‘(iii) a traffic control center. 

2 ‘‘(20) OPERATIONAL IMPROVEMENT.— 

3 ‘‘(A) IN GENERAL.—The term ‘operational 

4 improvement’ means— 

5 ‘‘(i) a capital improvement for instal6 lation or implementation of— 

7 ‘‘(I) a transportation system 

8 management and operations program; 

9 ‘‘(II) traffic and transportation 

10 security surveillance and control equip11 ment; 

12 ‘‘(III) a computerized signal sys13 tem; 

14 ‘‘(IV) a motorist information sys15 tem; 

16 ‘‘(V) an integrated traffic control 

17 system; 

18 ‘‘(VI) an incident management 

19 program; 

20 ‘‘(VII) equipment and programs 

21 for transportation response to man22 made and natural disasters; or 

23 ‘‘(VIII) a transportation demand 

24 management facility, strategy, or pro25 gram; and 
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1 ‘‘(ii) such other capital improvements 

2 to a public road as the Secretary may des3 ignate by regulation. 

4 ‘‘(B) EXCLUSIONS.—The term ‘operational 

5 improvement’ does not include— 

6 ‘‘(i) a resurfacing, restorative, or reha7 bilitative improvement; 

8 ‘‘(ii) construction of an additional 

9 lane, interchange, or grade separation; or 

10 ‘‘(iii) construction of a new facility on 

11 a new location. 

12 ‘‘(21) PARK ROAD.—The term ‘park road’ means 

13 a public road (including a bridge built primarily for 

14 pedestrian use, but with capacity for use by emer15 gency vehicles) that is located within, or provides ac16 cess to, an area in the National Park System with 

17 title and maintenance responsibilities vested in the 

18 United States. 

19 ‘‘(22) PARKWAY.—The term ‘parkway’ means a 

20 parkway authorized by an Act of Congress on land to 

21 which title is vested in the United States. 

22 ‘‘(23) PROJECT.—The term ‘project’ means— 

23 ‘‘(A)(i) an undertaking to construct a par24 ticular portion of a highway; or 
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1 ‘‘(ii) if the context so implies, a particular 

2 portion of a highway so constructed; and 

3 ‘‘(B) any other undertaking eligible for as4 sistance under this title. 

5 ‘‘(24) PROJECT AGREEMENT.—The term ‘project 

6 agreement’ means the formal instrument to be exe7 cuted by the Secretary and recipient of funds under 

8 this title. 

9 ‘‘(25) PUBLIC AUTHORITY.—The term ‘public au10 thority’ means a Federal, State, county, town, or 

11 township, Indian tribe, municipal or other local gov12 ernment or instrumentality with authority to finance, 

13 build, operate, or maintain toll or toll-free facilities. 

14 ‘‘(26) PUBLIC FOREST SERVICE ROAD.—The term 

15 ‘public Forest Service road’ means a classified forest 

16 road— 

17 ‘‘(A) that is open to public travel; 

18 ‘‘(B) for which title and maintenance re19 sponsibility is vested in the Federal Government; 

20 and 

21 ‘‘(C) that has been designated a public road 

22 by the Forest Service. 

23 ‘‘(27) PUBLIC LANDS DEVELOPMENT ROADS AND

24 TRAILS.—The term ‘public lands development roads 

25 and trails’ means roads and trails that the Secretary 
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1 of the Interior determines are of primary importance 

2 for the development, protection, administration, and 

3 use of public lands and resources under the control of 

4 the Secretary of the Interior. 

5 ‘‘(28) PUBLIC LANDS HIGHWAY.—The term ‘pub6 lic lands highway’ means— 

7 ‘‘(A) a forest road that is— 

8 ‘‘(i) under the jurisdiction of, and 

9 maintained by, a public authority; and 

10 ‘‘(ii) open to public travel; and 

11 ‘‘(B) any highway through unappropriated 

12 or unreserved public land, nontaxable Indian 

13 land, or any other Federal reservation (including 

14 a main highway through such land or reserva15 tion that is on the Federal-aid system) that is— 

16 ‘‘(i) under the jurisdiction of, and 

17 maintained by, a public authority; and 

18 ‘‘(ii) open to public travel. 

19 ‘‘(29) PUBLIC ROAD.—The term ‘public road’ 

20 means any road or street that is— 

21 ‘‘(A) under the jurisdiction of, and main22 tained by, a public authority; and 

23 ‘‘(B) open to public travel. 

24 ‘‘(30) RECREATIONAL ROAD.—The term ‘rec25 reational road’ means a public road— 
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1 ‘‘(A) that provides access to a museum, lake, 

2 reservoir, visitors center, gateway to a major 

3 wilderness area, public use area, or recreational 

4 or historic site; and 

5 ‘‘(B) for which title is vested in the Federal 

6 Government. 

7 ‘‘(31) REFUGE ROAD.—The term ‘refuge road’ 

8 means a public road— 

9 ‘‘(A) that provides access to or within a 

10 unit of the National Wildlife Refuge System or 

11 a national fish hatchery; and 

12 ‘‘(B) for which title and maintenance re13 sponsibility is vested in the United States Gov14 ernment. 

15 ‘‘(32) RURAL AREA.—The term ‘rural area’ 

16 means an area of a State that is not included in an 

17 urban area. 

18 ‘‘(33) SECRETARY.—The term ‘Secretary’ means 

19 the Secretary of Transportation. 

20 ‘‘(34) STATE.—The term ‘State’ means— 

21 ‘‘(A) a State; 

22 ‘‘(B) the District of Columbia; and 

23 ‘‘(C) the Commonwealth of Puerto Rico. 

24 ‘‘(35) STATE FUNDS.—The term ‘State funds’ in25 cludes funds that are— 
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1 ‘‘(A) raised under the authority of the State 

2 (or any political or other subdivision of a State); 

3 and 

4 ‘‘(B) made available for expenditure under 

5 the direct control of the State transportation de6 partment. 

7 ‘‘(36) STATE TRANSPORTATION DEPARTMENT.— 

8 The term ‘State transportation department’ means 

9 the department, agency, commission, board, or official 

10 of any State charged by the laws of the State with the 

11 responsibility for highway construction. 

12 ‘‘(37) TERRITORIAL HIGHWAY SYSTEM.—The 

13 term ‘territorial highway system’ means the system of 

14 arterial highways, collector roads, and necessary 

15 interisland connectors in American Samoa, the Com16 monwealth of the Northern Mariana Islands, Guam, 

17 and the United States Virgin Islands that have been 

18 designated by the appropriate Governor or chief exec19 utive officer of a territory, and approved by the Sec20 retary, in accordance with section 215. 

21 ‘‘(38) TRANSPORTATION ENHANCEMENT ACTIV22 ITY.—The term ‘transportation enhancement activity’ 

23 means, with respect to any project or the area to be 

24 served by the project, any of the following activities 

25 as the activities relate to surface transportation: 
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1 ‘‘(A) Provision of facilities for pedestrians 

2 and bicycles. 

3 ‘‘(B) Provision of safety and educational 

4 activities for pedestrians and bicyclists. 

5 ‘‘(C) Acquisition of scenic easements and 

6 scenic or historic sites (including historic battle7 fields). 

8 ‘‘(D) Scenic or historic highway programs 

9 (including the provision of tourist and welcome 

10 center facilities). 

11 ‘‘(E) Landscaping and other scenic beautifi12 cation. 

13 ‘‘(F) Historic preservation. 

14 ‘‘(G) Rehabilitation and operation of his15 toric transportation buildings, structures, or fa16 cilities (including historic railroad facilities and 

17 canals). 

18 ‘‘(H) Preservation of abandoned railway 

19 corridors (including the conversion and use of 

20 the corridors for pedestrian or bicycle trails). 

21 ‘‘(I) Control and removal of outdoor adver22 tising. 

23 ‘‘(J) Archaeological planning and research. 

24 ‘‘(K) Environmental mitigation— 
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1 ‘‘(i) to address water pollution due to 

2 highway runoff; or 

3 ‘‘(ii) reduce vehicle-caused wildlife 

4 mortality while maintaining habitat 

5 connectivity. 

6 ‘‘(L) Establishment of transportation muse7 ums. 

8 ‘‘(39) TRANSPORTATION SYSTEMS MANAGEMENT

9 AND OPERATIONS.— 

10 ‘‘(A) IN GENERAL.—The term ‘transpor11 tation systems management and operations’ 

12 means an integrated program to optimize the 

13 performance of existing infrastructure through 

14 the implementation of multimodal and inter15 modal, cross-jurisdictional systems, services, and 

16 projects designed to preserve capacity and im17 prove security, safety, and reliability of the 

18 transportation system. 

19 ‘‘(B) INCLUSIONS.—The term ‘transpor20 tation systems management and operations’ in21 cludes— 

22 ‘‘(i) regional operations collaboration 

23 and coordination activities between trans24 portation and public safety agencies; and 
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1 ‘‘(ii) improvements to the transpor2 tation system such as traffic detection and 

3 surveillance, arterial management, freeway 

4 management, demand management, work 

5 zone management, emergency management, 

6 electronic toll collection, automated enforce7 ment, traffic incident management, road8 way weather management, traveler infor9 mation services, commercial vehicle oper10 ations, traffic control, freight management, 

11 and coordination of highway, rail, transit, 

12 bicycle, and pedestrian operations. 

13 ‘‘(40) URBAN AREA.—The term ‘urban area’ 

14 means— 

15 ‘‘(A) an urbanized area (or, in the case of 

16 an urbanized area encompassing more than 1 

17 State, the portion of the urbanized area in each 

18 State); and 

19 ‘‘(B) an urban place designated by the Bu20 reau of the Census that— 

21 ‘‘(i) has a population of 5,000 or more; 

22 ‘‘(ii) is not located within any urban23 ized area; and 

24 ‘‘(iii) is located within boundaries 

25 that— 
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1 ‘‘(I) are fixed cooperatively by re2 sponsible State and local officials, sub3 ject to approval by the Secretary; and 

4 ‘‘(II) encompass, at a minimum, 

5 the entire urban place designated by 

6 the Bureau of the Census (except in the 

7 case of cities in the State of Maine and 

8 in the State of New Hampshire). 

9 ‘‘(41) URBANIZED AREA.—The term ‘urbanized 

10 area’ means an area that— 

11 ‘‘(A) has a population of 50,000 or more; 

12 ‘‘(B) is designated by the Bureau of the 

13 Census; and 

14 ‘‘(C) is located within boundaries that— 

15 ‘‘(i) are fixed cooperatively by respon16 sible State and local officials, subject to ap17 proval by the Secretary; and 

18 ‘‘(ii) encompass, at a minimum, the 

19 entire urbanized area within a State as des20 ignated by the Bureau of the Census.’’. 
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1 TITLE I—FEDERAL-AID 

2 HIGHWAYS 

3 Subtitle A—Funding 

4 SEC. 1101. AUTHORIZATION OF APPROPRIATIONS. 

5 The following sums are authorized to be appropriated 

6 out of the Highway Trust Fund (other than the Mass Tran7 sit Account): 

8 (1) INTERSTATE MAINTENANCE PROGRAM.—For 

9 the Interstate maintenance program under section 

10 119 of title 23, United States Code— 

11 (A) $5,442,371,792 for fiscal year 2004; 

12 (B) $6,425,168,342 for fiscal year 2005; 

13 (C) $6,683,176,289 for fiscal year 2006; 

14 (D) $6,702,365,186 for fiscal year 2007; 

15 (E) $7,036,621,314 for fiscal year 2008; 

16 and 

17 (F) $7,139,130,081 for fiscal year 2009. 

18 (2) NATIONAL HIGHWAY SYSTEM.—For the Na19 tional Highway System under section 103 of that 

20 title— 

21 (A) $6,593,922,257 for fiscal year 2004; 

22 (B) $7,815,590,130 for fiscal year 2005; 

23 (C) $8,125,241,450 for fiscal year 2006; 

24 (D) $8,148,531,791 for fiscal year 2007; 
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1 (E) $8,554,231,977 for fiscal year 2008; 

2 and 

3 (F) $8,678,591,297 for fiscal year 2009. 

4 (3) BRIDGE PROGRAM.—For the bridge program 

5 under section 144 of that title— 

6 (A) $4,650,754,076 for fiscal year 2004; 

7 (B) $5,507,287,150 for fiscal year 2005; 

8 (C) $5,713,860,644 for fiscal year 2006; 

9 (D) $5,730,266,418 for fiscal year 2007; 

10 (E) $6,016,042,650 for fiscal year 2008; 

11 and 

12 (F) $6,103,714,622 for fiscal year 2009. 

13 (4) SURFACE TRANSPORTATION PROGRAM.—For 

14 the surface transportation program under section 133 

15 of that title— 

16 (A) $6,877,178,900 for fiscal year 2004; 

17 (B) $8,107,950,527 for fiscal year 2005; 

18 (C) $8,417,741,127 for fiscal year 2006; 

19 (D) $8,441,910,349 for fiscal year 2007; 

20 (E) $8,862,919,976 for fiscal year 2008; 

21 and 

22 (F) $8,992,134,975 for fiscal year 2009. 

23 (5) CONGESTION MITIGATION AND AIR QUALITY

24 IMPROVEMENT PROGRAM.—For the congestion mitiga-
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1 tion and air quality improvement program under sec2 tion 149 of that title— 

3 (A) $1,880,092,073 for fiscal year 2004; 

4 (B) $2,192,716,180 for fiscal year 2005; 

5 (C) $2,270,239,273 for fiscal year 2006; 

6 (D) $2,276,757,639 for fiscal year 2007; 

7 (E) $2,390,302,660 for fiscal year 2008; 

8 and 

9 (F) $2,425,236,569 for fiscal year 2009. 

10 (6) HIGHWAY SAFETY IMPROVEMENT PRO11 GRAM.—For the highway safety improvement pro12 gram under section 148 of that title— 

13 (A) $1,187,426,572 for fiscal year 2004; 

14 (B) $1,325,828,388 for fiscal year 2005; 

15 (C) $1,377,448,548 for fiscal year 2006; 

16 (D) $1,381,403,511 for fiscal year 2007; 

17 (E) $1,450,295,996 for fiscal year 2008; 

18 and 

19 (F) $1,471,607,029 for fiscal year 2009. 

20 (7) APPALACHIAN DEVELOPMENT HIGHWAY SYS21 TEM PROGRAM.—For the Appalachian development 

22 highway system program under section 170 of that 

23 title, $590,000,000 for each of fiscal years 2004 

24 through 2009. 
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1 (8) RECREATIONAL TRAILS PROGRAM.—For the 

2 recreational trails program under section 206 of that 

3 title, $60,000,000 for each of fiscal years 2004 

4 through 2009. 

5 (9) FEDERAL LANDS HIGHWAYS PROGRAM.— 

6 (A) INDIAN RESERVATION ROADS.—For In7 dian reservation roads under section 204 of that 

8 title— 

9 (i) $300,000,000 for fiscal year 2004; 

10 (ii) $325,000,000 for fiscal year 2005; 

11 (iii) $350,000,000 for fiscal year 2006; 

12 (iv) $375,000,000 for fiscal year 2007; 

13 (v) $400,000,000 for fiscal year 2008; 

14 and 

15 (vi) $425,000,000 for fiscal year 2009. 

16 (B) RECREATION ROADS.—For recreation 

17 roads under section 204 of that title, $50,000,000 

18 for each of fiscal years 2004 through 2009. 

19 (C) PARK ROADS AND PARKWAYS.—For 

20 park roads and parkways under section 204 of 

21 that title— 

22 (i) $300,000,000 for fiscal year 2004; 

23 (ii) $310,000,000 for fiscal year 2005; 

24 and 
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1 (iii) $320,000,000 for each of fiscal 

2 years 2006 through 2009. 

3 (D) REFUGE ROADS.—For refuge roads 

4 under section 204 of that title, $30,000,000 for 

5 each of fiscal years 2004 through 2009. 

6 (E) PUBLIC LANDS HIGHWAYS.—For Fed7 eral lands highways under section 204 of that 

8 title, $300,000,000 for each of fiscal years 2004 

9 through 2009. 

10 (F) SAFETY.—For safety under section 204 

11 of that title, $40,000,000 for each of fiscal years 

12 2004 through 2009. 

13 (10) MULTISTATE CORRIDOR PROGRAM.—For the 

14 multistate corridor program under section 171 of that 

15 title— 

16 (A) $112,500,000 for fiscal year 2004; 

17 (B) $135,000,000 for fiscal year 2005; 

18 (C) $157,500,000 for fiscal year 2006; 

19 (D) $180,000,000 for fiscal year 2007; 

20 (E) $202,500,000 for fiscal year 2008; and 

21 (F) $225,000,000 for fiscal year 2009. 

22 (11) BORDER PLANNING, OPERATIONS, AND

23 TECHNOLOGY PROGRAM.—For the border planning, 

24 operations, and technology program under section 172 

25 of that title— 
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1 (A) $112,500,000 for fiscal year 2004; 

2 (B) $135,000,000 for fiscal year 2005; 

3 (C) $157,500,000 for fiscal year 2006; 

4 (D) $180,000,000 for fiscal year 2007; 

5 (E) $202,500,000 for fiscal year 2008; and 

6 (F) $225,000,000 for fiscal year 2009. 

7 (12) NATIONAL SCENIC BYWAYS PROGRAM.—For 

8 the national scenic byways program under section 

9 162 of that title— 

10 (A) $34,000,000 for fiscal year 2004; 

11 (B) $35,000,000 for fiscal year 2005; 

12 (C) $36,000,000 for fiscal year 2006; 

13 (D) $37,000,000 for fiscal year 2007; and 

14 (E) $39,000,000 for each of fiscal years 

15 2008 and 2009. 

16 (13) INFRASTRUCTURE PERFORMANCE AND MAIN17 TENANCE PROGRAM.—For carrying out the infrastruc18 ture performance and maintenance program under 

19 section 139 of that title $2,000,000,000 for fiscal year 

20 2004. 

21 (14) CONSTRUCTION OF FERRY BOATS AND

22 FERRY TERMINAL FACILITIES.—For construction of 

23 ferry boats and ferry terminal facilities under section 

24 147 of that title, $60,000,000 for each of fiscal years 

25 2004 through 2009. 
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1 (15) COMMONWEALTH OF PUERTO RICO HIGH2 WAY PROGRAM.—For the Commonwealth of Puerto 

3 Rico highway program under section 173 of that 

4 title— 

5 (A) $140,000,000 for fiscal year 2004; 

6 (B) $145,000,000 for fiscal year 2005; 

7 (C) $149,000,000 for fiscal year 2006; 

8 (D) $154,000,000 for fiscal year 2007; 

9 (E) $160,000,000 for fiscal year 2008; and 

10 (F) $163,000,000 for fiscal year 2009. 

11 (16) PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO12 GRAM.—For the public-private partnerships pilot pro13 gram under section 109(c)(3) of that title, 

14 $10,000,000 for each of fiscal years 2004 through 

15 2009. 

16 (17) DENALI ACCESS SYSTEM.—For the Denali 

17 Access System under section 309 of the Denali Com18 mission Act of 1998 (42 U.S.C. 3121 note; Public 

19 Law 105–277), $30,000,000 for each of fiscal years 

20 2004 through 2009. 

21 (18) DELTA REGION TRANPORTATION

22 DEVELOPMENT PROGRAM.—For planning and con23 struction activities authorized under the Delta Re24 gional Authority, $80,000,000 for each of fiscal years 

25 2004 through 2009. 
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1 SEC. 1102. OBLIGATION CEILING. 

2 (a) GENERAL LIMITATION.—Subject to subsections (g) 

3 and (h), and notwithstanding any other provision of law, 

4 the obligations for Federal-aid highway and highway safety 

5 construction programs shall not exceed— 

6 (1) $33,643,326,300 for fiscal year 2004; 

7 (2) $37,900,000,000 for fiscal year 2005; 

8 (3) $39,100,000,000 for each of fiscal years 2006 

9 and 2007; 

10 (4) $39,400,000,000 for fiscal year 2008; and 

11 (5) $44,400,000,000 for fiscal year 2009. 

12 (b) EXCEPTIONS.—The limitations under subsection 

13 (a) shall not apply to obligations under or for— 

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

15 (2) section 147 of the Surface Transportation As16 sistance Act of 1978 (23 U.S.C. 144 note; 92 Stat. 

17 2714); 

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

19 1981 (Public Law 97–134; 95 Stat. 1701); 

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

21 Surface Transportation Assistance Act of 1982 (Pub22 lic Law 97–424; 96 Stat. 2119); 

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

24 Surface Transportation and Uniform Relocation As25 sistance Act of 1987 (Public Law 100–17; 101 Stat. 

26 198); 
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1 (6) sections 1103 through 1108 of the Intermodal 

2 Surface Transportation Efficiency Act of 1991 (Pub3 lic Law 102–240; 105 Stat. 2027); 

4 (7) section 157 of title 23, United States Code 

5 (as in effect on June 8, 1998); 

6 (8) section 105 of title 23, United States Code 

7 (as in effect for fiscal years 1998 through 2003, but 

8 only in an amount equal to $639,000,000 for each of 

9 those fiscal years); 

10 (9) Federal-aid highway programs for which ob11 ligation authority was made available under the 

12 Transportation Equity Act for the 21st Century (Pub13 lic Law 105–178; 112 Stat. 107) or subsequent public 

14 laws for multiple years or to remain available until 

15 used, but only to the extent that the obligation author16 ity has not lapsed or been used; and 

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

18 (but, for each of fiscal years 2004 through 2009, only 

19 in an amount equal to $439,000,000 per fiscal year). 

20 (c) DISTRIBUTION OF OBLIGATION AUTHORITY.—For 

21 each of fiscal years 2004 through 2009, the Secretary— 

22 (1) shall not distribute obligation authority pro23 vided by subsection (a) for the fiscal year for— 
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1 (A) amounts authorized for administrative 

2 expenses and programs by section 104(a) of title 

3 23, United States Code; 

4 (B) programs funded from the administra5 tive takedown authorized by section 104(a)(1) of 

6 title 23, United States Code; and 

7 (C) amounts authorized for the highway use 

8 tax evasion program and the Bureau of Trans9 portation Statistics; 

10 (2) shall not distribute an amount of obligation 

11 authority provided by subsection (a) that is equal to 

12 the unobligated balance of amounts made available 

13 from the Highway Trust Fund (other than the Mass 

14 Transit Account) for Federal-aid highway and high15 way safety programs for previous fiscal years the 

16 funds for which are allocated by the Secretary; 

17 (3) shall determine the ratio that— 

18 (A) the obligation authority provided by 

19 subsection (a) for the fiscal year, less the aggre20 gate of amounts not distributed under para21 graphs (1) and (2); bears to 

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

23 appropriated for the Federal-aid highway and 

24 highway safety construction programs (other 

25 than sums authorized to be appropriated for pro-
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1 visions of law described in paragraphs (1) 

2 through (9) of subsection (b) and sums author3 ized to be appropriated for section 105 of title 

4 23, United States Code, equal to the amount re5 ferred to in subsection (b)(10) for the fiscal 

6 year), less the aggregate of the amounts not dis7 tributed under paragraphs (1) and (2); 

8 (4) shall distribute the obligation authority pro9 vided by subsection (a) less the aggregate amounts not 

10 distributed under paragraphs (1) and (2), for section 

11 14501 of title 40, United States Code, so that the 

12 amount of obligation authority available for that sec13 tion is equal to the amount determined by multi14 plying— 

15 (A) the ratio determined under paragraph 

16 (3); by 

17 (B) the sums authorized to be appropriated 

18 for that section for the fiscal year; 

19 (5) shall distribute among the States the obliga20 tion authority provided by subsection (a), less the ag21 gregate amounts not distributed under paragraphs (1) 

22 and (2), for each of the programs that are allocated 

23 by the Secretary under this Act and title 23, United 

24 States Code (other than to programs to which para25 graph (1) applies), by multiplying— 
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1 (A) the ratio determined under paragraph 

2 (3); by 

3 (B) the amounts authorized to be appro4 priated for each such program for the fiscal year; 

5 and 

6 (6) shall distribute the obligation authority pro7 vided by subsection (a), less the aggregate amounts 

8 not distributed under paragraphs (1) and (2) and the 

9 amounts distributed under paragraphs (4) and (5), 

10 for Federal-aid highway and highway safety construc11 tion programs (other than the amounts apportioned 

12 for the equity bonus program, but only to the extent 

13 that the amounts apportioned for the equity bonus 

14 program for the fiscal year are greater than 

15 $439,000,000, and the Appalachian development high16 way system program) that are apportioned by the 

17 Secretary under this Act and title 23, United States 

18 Code, in the ratio that— 

19 (A) amounts authorized to be appropriated 

20 for the programs that are apportioned to each 

21 State for the fiscal year; bear to 

22 (B) the total of the amounts authorized to 

23 be appropriated for the programs that are ap24 portioned to all States for the fiscal year. 
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1 (d) REDISTRIBUTION OF UNUSED OBLIGATION AU2 THORITY.—Notwithstanding subsection (c), the Secretary 

3 shall, after August 1 of each of fiscal years 2004 through 

4 2009— 

5 (1) revise a distribution of the obligation author6 ity made available under subsection (c) if an amount 

7 distributed cannot be obligated during that fiscal 

8 year; and 

9 (2) redistribute sufficient amounts to those States 

10 able to obligate amounts in addition to those pre11 viously distributed during that fiscal year, giving pri12 ority to those States having large unobligated bal13 ances of funds apportioned under sections 104 and 

14 144 of title 23, United States Code. 

15 (e) APPLICABILITY OF OBLIGATION LIMITATIONS TO

16 TRANSPORTATION RESEARCH PROGRAMS.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), obligation limitations imposed by sub19 section (a) shall apply to contract authority for trans20 portation research programs carried out under— 

21 (A) chapter 5 of title 23, United States 

22 Code; and 

23 (B) title II of this Act. 

24 (2) EXCEPTION.—Obligation authority made 

25 available under paragraph (1) shall— 
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1 (A) remain available for a period of 3 fiscal 

2 years; and 

3 (B) be in addition to the amount of any 

4 limitation imposed on obligations for Federal5 aid highway and highway safety construction 

6 programs for future fiscal years. 

7 (f) REDISTRIBUTION OF CERTAIN AUTHORIZED

8 FUNDS.— 

9 (1) IN GENERAL.—Not later than 30 days after 

10 the date of distribution of obligation authority under 

11 subsection (c) for each of fiscal years 2004 through 

12 2009, the Secretary shall distribute to the States any 

13 funds that— 

14 (A) are authorized to be appropriated for 

15 the fiscal year for Federal-aid highway pro16 grams; and 

17 (B) the Secretary determines will not be al18 located to the States, and will not be available 

19 for obligation, in the fiscal year due to the impo20 sition of any obligation limitation for the fiscal 

21 year. 

22 (2) RATIO.—Funds shall be distributed under 

23 paragraph (1) in the same ratio as the distribution 

24 of obligation authority under subsection (c)(6). 
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1 (3) AVAILABILITY.—Funds distributed under 

2 paragraph (1) shall be available for any purpose de3 scribed in section 133(b) of title 23, United States 

4 Code. 

5 (g) SPECIAL RULE.—Obligation authority distributed 

6 for a fiscal year under subsection (c)(4) for the provision 

7 specified in subsection (c)(4) shall— 

8 (1) remain available until used for obligation of 

9 funds for that provision; and 

10 (2) be in addition to the amount of any limita11 tion imposed on obligations for Federal-aid highway 

12 and highway safety construction programs for future 

13 fiscal years. 

14 (h) ADJUSTMENT IN OBLIGATION LIMIT.— 

15 (1) IN GENERAL.—A limitation on obligations 

16 imposed by subsection (a) for a fiscal year shall be 

17 adjusted by an amount equal to the amount deter18 mined in accordance with section 251(b)(1)(B) of the 

19 Balanced Budget and Emergency Deficit Control Act 

20 of 1985 (2 U.S.C. 901(b)(1)(B)) for the fiscal year. 

21 (2) DISTRIBUTION.—An adjustment under para22 graph (1) shall be distributed in accordance with this 

23 section. 

24 (i) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRA25 TIVE EXPENSES.—Notwithstanding any other provision of 
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1 law, the total amount of all obligations under section 104(a) 

2 of title 23, United States Code, shall not exceed— 

3 (1) $450,000,000 for fiscal year 2004; 

4 (2) $465,000,000 for fiscal year 2005; 

5 (3) $480,000,000 for fiscal year 2006; 

6 (4) $495,000,000 for fiscal year 2007; 

7 (5) $510,000,000 for fiscal year 2008; and 

8 (6) $525,000,000 for fiscal year 2009. 

9 (j) NATIONAL HIGHWAY SYSTEM COMPONENT.—Sec10 tion 104(b)(1) of title 23, United States Code, is amended 

11 by striking ‘‘$36,400,000’’ and insert ‘‘$50,000,000’’. 

12 SEC. 1103. APPORTIONMENTS. 

13 (a) ADMINISTRATIVE EXPENSES.— 

14 (1) IN GENERAL.—Section 104 of title 23, 

15 United States Code, is amended by striking subsection 

16 (a) and inserting the following: 

17 ‘‘(a) ADMINISTRATIVE EXPENSES.— 

18 ‘‘(1) IN GENERAL.—There are authorized to be 

19 appropriated from the Highway Trust Fund (other 

20 than the Mass Transit Account) to be made available 

21 to the Secretary of Transportation for administrative 

22 expenses of the Federal Highway Administration— 

23 ‘‘(A) $450,000,000 for fiscal year 2004; 

24 ‘‘(B) $465,000,000 for fiscal year 2005; 

25 ‘‘(C) $480,000,000 for fiscal year 2006; 
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1 ‘‘(D) $495,000,000 for fiscal year 2007; 

2 ‘‘(E) $510,000,000 for fiscal year 2008; and 

3 ‘‘(F) $525,000,000 for fiscal year 2009. 

4 ‘‘(2) PURPOSES.—The funds authorized by this 

5 subsection shall be used— 

6 ‘‘(A) to administer the provisions of law to 

7 be financed from appropriations for the Federal8 aid highway program and programs authorized 

9 under chapter 2; and 

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

11 Secretary determines to be appropriate to the 

12 Appalachian Regional Commission for adminis13 trative activities associated with the Appa14 lachian development highway system. 

15 ‘‘(3) AVAILABILITY.—The funds made available 

16 under paragraph (1) shall remain available until ex17 pended.’’. 

18 (2) CONFORMING AMENDMENTS.—Section 104 of 

19 title 23, United States Code, is amended— 

20 (A) in the matter preceding paragraph (1) 

21 of subsection (b), by striking ‘‘the deduction au22 thorized by subsection (a) and’’; 

23 (B) in the first sentence of subsection (e)(1), 

24 by striking ‘‘, and also’’ and all that follows 

25 through ‘‘this section’’; and 
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1 (C) in subsection (i), by striking ‘‘deducted’’ 

2 and inserting ‘‘made available’’. 

3 (b) METROPOLITAN PLANNING.—Section 104(f) of title 

4 23, United States Code, is amended— 

5 (1) by striking paragraph (1) and inserting the 

6 following: 

7 ‘‘(1) SET-ASIDE.—On October 1 of each fiscal 

8 year, the Secretary shall set aside 1.5 percent of the 

9 funds authorized to be appropriated for the Interstate 

10 maintenance, national highway system, surface trans11 portation, congestion mitigation and air quality im12 provement, highway safety improvement, and high13 way bridge programs authorized under this title to 

14 carry out the requirements of section 134.’’; 

15 (2) in paragraph (2), by striking ‘‘per centum’’ 

16 and inserting ‘‘percent’’; 

17 (3) in paragraph (3)— 

18 (A) by striking ‘‘The funds’’ and inserting 

19 the following: 

20 ‘‘(A) IN GENERAL.—The funds’’; and 

21 (B) by striking ‘‘These funds’’ and all that 

22 follows and inserting the following: 

23 ‘‘(B) UNUSED FUNDS.—Any funds that are 

24 not used to carry out section 134 may be made 

25 available by a metropolitan planning organiza-
52 

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1 tion to the State to fund activities under section 

2 135.’’; and 

3 (4) by adding at the end the following: 

4 ‘‘(6) FEDERAL SHARE.—Funds apportioned to a 

5 State under this subsection shall be matched in ac6 cordance with section 120(b) unless the Secretary de7 termines that the interests of the Federal-aid highway 

8 program would be best served without the match.’’. 

9 (c) ALASKA HIGHWAY.—Section 104(b)(1)(A) of title 

10 23, United States Code, is amended by striking ‘‘1998 

11 through 2002’’ and inserting ‘‘2004 through 2009’’. 

12 SEC. 1104. EQUITY BONUS PROGRAM. 

13 (a) IN GENERAL.—Section 105 of title 23, United 

14 States Code, is amended to read as follows: 

15 ‘‘§ 105. Equity bonus program 

16 ‘‘(a) PROGRAM.— 

17 ‘‘(1) IN GENERAL.—Subject to subsections (c) 

18 and (d), for each of fiscal years 2004 through 2009, 

19 the Secretary shall allocate among the States amounts 

20 sufficient to ensure that no State receives a percentage 

21 of the total apportionments for the fiscal year for the 

22 programs specified in paragraph (2) that is less than 

23 the percentage calculated under subsection (b). 

24 ‘‘(2) SPECIFIC PROGRAMS.—The programs re25 ferred to in subsection (a) are— 
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1 ‘‘(A) the Interstate maintenance program 

2 under section 119; 

3 ‘‘(B) the national highway system program 

4 under section 103; 

5 ‘‘(C) the bridge program under section 144; 

6 ‘‘(D) the surface transportation program 

7 under section 133; 

8 ‘‘(E) the highway safety improvement pro9 gram under section 148; 

10 ‘‘(F) the congestion mitigation and air 

11 quality improvement program under section 149; 

12 ‘‘(G) metropolitan planning programs 

13 under section 104(f) (other than planning pro14 grams funded by amounts provided under the eq15 uity bonus program under this section); 

16 ‘‘(H) the infrastructure performance and 

17 maintenance program under section 139; 

18 ‘‘(I) the equity bonus program under this 

19 section; 

20 ‘‘(J) the Appalachian development highway 

21 system program under subtitle IV of title 40; 

22 ‘‘(K) the recreational trails program under 

23 section 206; 

24 ‘‘(L) the safe routes to schools program 

25 under section 150; and 
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1 ‘‘(M) the rail-highway grade crossing pro2 gram under section 130. 

3 ‘‘(b) STATE PERCENTAGE.— 

4 ‘‘(1) IN GENERAL.—The percentage referred to in 

5 subsection (a) for each State shall be— 

6 ‘‘(A) 95 percent of the quotient obtained by 

7 dividing— 

8 ‘‘(i) the estimated tax payments attrib9 utable to highway users in the State paid 

10 into the Highway Trust Fund (other than 

11 the Mass Transit Account) in the most re12 cent fiscal year for which data are avail13 able; by 

14 ‘‘(ii) the estimated tax payments at15 tributable to highway users in all States 

16 paid into the Highway Trust Fund (other 

17 than the Mass Transit Account) for the fis18 cal year; or 

19 ‘‘(B) for a State with a total population 

20 density of less than 20 persons per square mile, 

21 as reported in the decennial census conducted by 

22 the Federal Government in 2000, a total popu23 lation of less than 1,000,000, as reported in that 

24 decennial census, or a median household income 
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1 of less than $35,000, as reported in that decen2 nial census, the greater of— 

3 ‘‘(i) the percentage under paragraph 

4 (1); or 

5 ‘‘(ii) the average percentage of the 

6 State’s share of total apportionments for the 

7 period of fiscal years 1998 through 2003 for 

8 the programs specified in paragraph (2). 

9 ‘‘(2) SPECIFIC PROGRAMS.—The programs re10 ferred to in paragraph (1)(B)(ii) are (as in effect on 

11 the day before the date of enactment of the Safe, Ac12 countable, Flexible, and Efficient Transportation Eq13 uity Act of 2004)— 

14 ‘‘(A) the Interstate maintenance program 

15 under section 119; 

16 ‘‘(B) the national highway system program 

17 under section 103; 

18 ‘‘(C) the bridge program under section 144; 

19 ‘‘(D) the surface transportation program 

20 under section 133; 

21 ‘‘(E) the recreational trails program under 

22 section 206; 

23 ‘‘(F) the high priority projects program 

24 under section 117; 
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1 ‘‘(G) the minimum guarantee provided 

2 under this section; 

3 ‘‘(H) revenue aligned budget authority 

4 amounts provided under section 110; 

5 ‘‘(I) the congestion mitigation and air qual6 ity improvement program under section 149; 

7 ‘‘(J) the Appalachian development highway 

8 system program under subtitle IV of title 40; and 

9 ‘‘(K) metropolitan planning programs 

10 under section 104(f). 

11 ‘‘(c) SPECIAL RULES.— 

12 ‘‘(1) MINIMUM COMBINED ALLOCATION.—For 

13 each fiscal year, before making the allocations under 

14 subsection (a)(1), the Secretary shall allocate among 

15 the States amounts sufficient to ensure that no State 

16 receives a combined total of amounts allocated under 

17 subsection (a)(1), apportionments for the programs 

18 specified in subsection (a)(2), and amounts allocated 

19 under this subsection, that is less than 110 percent of 

20 the average for fiscal years 1998 through 2003 of the 

21 annual apportionments for the State for all programs 

22 specified in subsection (b)(2). 

23 ‘‘(2) NO NEGATIVE ADJUSTMENT.—Notwith24 standing subsection (d), no negative adjustment shall 
57 

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1 be made under subsection (a)(1) to the apportionment 

2 of any State. 

3 ‘‘(3) MINIMUM SHARE OF TAX PAYMENTS.—Not4 withstanding subsection (d), for each fiscal year, the 

5 Secretary shall allocate among the States amounts 

6 sufficient to ensure that no State receives a percentage 

7 of apportionments for the fiscal year for the programs 

8 specified in subsection (a)(2) that is less than 90.5 

9 percent of the percentage share of the State of esti10 mated tax payments attributable to highway users in 

11 the State paid into the Highway Trust Fund (other 

12 than the Mass Transit Account) in the most recent 

13 fiscal year for which data are available. 

14 ‘‘(d) LIMITATION ON ADJUSTMENTS.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graphs (2) and (3) of subsection (c), no State shall re17 ceive, for any fiscal year, additional amounts under 

18 subsection (a)(1) if— 

19 ‘‘(A) the total apportionments of the State 

20 for the fiscal year for the programs specified in 

21 subsection (a)(2); exceed 

22 ‘‘(B) the percentage of the average, for the 

23 period of fiscal years 1998 through 2003, of the 

24 annual apportionments of the State for all pro-
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1 grams specified in subsection (b)(2), as specified 

2 in paragraph (2). 

3 ‘‘(2) PERCENTAGES.—The percentages referred to 

4 in paragraph (1)(B) are— 

5 ‘‘(A) for fiscal year 2004, 120 percent; 

6 ‘‘(B) for fiscal year 2005, 130 percent; 

7 ‘‘(C) for fiscal year 2006, 134 percent; 

8 ‘‘(D) for fiscal year 2007, 137 percent; 

9 ‘‘(E) for fiscal year 2008, 145 percent; and 

10 ‘‘(F) for fiscal year 2009, 250 percent. 

11 ‘‘(e) PROGRAMMATIC DISTRIBUTION OF FUNDS.—The 

12 Secretary shall apportion the amounts made available 

13 under this section so that the amount apportioned to each 

14 State under this section for each program referred to in sub15 paragraphs (A) through (G) of subsection (a)(2) is equal 

16 to the amount determined by multiplying the amount to 

17 be apportioned under this section by the proportion that— 

18 ‘‘(1) the amount of funds apportioned to each 

19 State for each program referred to in subparagraphs 

20 (A) through (G) of subsection (a)(2) for a fiscal year; 

21 bears to 

22 ‘‘(2) the total amount of funds apportioned to 

23 each State for all such programs for the fiscal year. 
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1 ‘‘(f) METRO PLANNING SET ASIDE.—Notwithstanding 

2 section 104(f), no set aside provided for under that section 

3 shall apply to funds allocated under this section. 

4 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated from the Highway Trust 

6 Fund (other than the Mass Transit Account) such sums as 

7 are necessary to carry out this section for each of fiscal 

8 years 2004 through 2009.’’. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) The analysis for subchapter I of chapter 1 of 

11 title 23, United States Code, is amended by striking 

12 the item relating to section 105 and inserting the fol13 lowing: 

‘‘105. Equity bonus program.’’ 

14 (2) Section 104(a)(1) of title 23, United States 

15 Code, is amended by striking ‘‘minimum guarantee’’ 

16 and inserting ‘‘equity bonus’’. 

17 SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY. 

18 Section 110 of title 23, United States Code, is amend19 ed— 

20 (1) in subsection (a)— 

21 (A) in paragraphs (1) and (2), by striking 

22 ‘‘2000’’ and inserting ‘‘2006’’; 

23 (B) in paragraph (1), by inserting ‘‘(as in 

24 effect on September 30, 2002)’’ after ‘‘(2 U.S.C. 

25 901(b)(2)(B)(ii)(I)(cc))’’; and 
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1 (C) in paragraph (2)— 

2 (i) by striking ‘‘If the amount’’ and in3 serting the following: 

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

5 subparagraph (B), if the amount’’; 

6 (ii) by inserting ‘‘(as in effect on Sep7 tember 30, 2002)’’ after ‘‘(2 U.S.C. 

8 901(b)(1)(B)(ii)(I)(cc)’’; 

9 (iii) by striking ‘‘the succeeding’’ and 

10 inserting ‘‘that’’; 

11 (iv) by striking ‘‘and the motor carrier 

12 safety grant program’’; and 

13 (v) by adding at the end the following: 

14 ‘‘(B) LIMITATION.—No reduction under sub15 paragraph (A) shall be made for a fiscal year if, 

16 as of October 1 of the fiscal year, the cash bal17 ance in the Highway Trust Fund (other than the 

18 Mass Transit Account) exceeds $6,000,000,000.’’; 

19 (2) in subsection (b)(1), by striking subpara20 graph (A) and inserting the following: 

21 ‘‘(A) the sums authorized to be appropriated 

22 from the Highway Trust Fund (other than the 

23 Mass Transit Account) for each of the Federal24 aid highway and highway safety construction 

25 programs (other than the equity bonus program) 
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1 and for which funds are allocated from the High2 way Trust Fund by the Secretary under this title 

3 and the Safe, Accountable, Flexible, and Effi4 cient Transportation Equity Act of 2004; bears 

5 to’’; 

6 (3) in subsection (c), by inserting ‘‘the highway 

7 safety improvement program,’’ after ‘‘the surface 

8 transportation program,’’; and 

9 (4) by striking subsections (e), (f), and (g). 

10 Subtitle B—New Programs 

11 SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTE12 NANCE PROGRAM. 

13 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

14 23, United States Code, is amended by inserting after sec15 tion 138 the following: 

16 ‘‘§ 139. Infrastructure performance and maintenance 

17 program 

18 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish 

19 and implement an infrastructure performance and mainte20 nance program in accordance with this section. 

21 ‘‘(b) ELIGIBLE PROJECTS.—A State may obligate 

22 funds allocated to the State under this section only for 

23 projects eligible under the Interstate maintenance program 

24 under section 119, the National Highway System program 

25 under section 103, the surface transportation program 
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1 under section 133, the highway safety improvement pro2 gram under section 148, the highway bridge program under 

3 section 144, and the congestion mitigation and air quality 

4 improvement program under section 149 that will— 

5 ‘‘(1) preserve, maintain, or otherwise extend, in 

6 a cost-effective manner, the useful life of existing high7 way infrastructure elements; or 

8 ‘‘(2) provide operational improvements (includ9 ing traffic management and intelligent transportation 

10 system strategies and limited capacity enhancements) 

11 at points of recurring highway congestion. 

12 ‘‘(c) PERIOD OF AVAILABILITY.— 

13 ‘‘(1) OBLIGATION WITHIN 180 DAYS.— 

14 ‘‘(A) IN GENERAL.—Funds allocated to a 

15 State under this section shall be obligated by the 

16 State not later than 180 days after the date of 

17 apportionment. 

18 ‘‘(B) UNOBLIGATED FUNDS.—Any amounts 

19 that remain unobligated at the end of that pe20 riod shall be allocated in accordance with sub21 section (d). 

22 ‘‘(2) OBLIGATION BY END OF FISCAL YEAR.— 

23 ‘‘(A) IN GENERAL.—All funds allocated or 

24 reallocated under this section shall remain avail-
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1 able for obligation until the last day of the fiscal 

2 year for which the funds are apportioned. 

3 ‘‘(B) UNOBLIGATED FUNDS.—Any amounts 

4 allocated that remain unobligated at the end of 

5 the fiscal year shall lapse. 

6 ‘‘(d) REDISTRIBUTION OF ALLOCATED FUNDS AND OB7 LIGATION AUTHORITY.— 

8 ‘‘(1) IN GENERAL.—On the date that is 180 days 

9 after the date of allocation, or as soon thereafter as 

10 practicable, for each fiscal year, the Secretary shall— 

11 ‘‘(A) withdraw— 

12 ‘‘(i) any funds allocated to a State 

13 under this section that remain unobligated; 

14 and 

15 ‘‘(ii) an equal amount of obligation 

16 authority provided for the use of the funds 

17 in accordance with section 1101(13) of the 

18 Safe, Accountable, Flexible, and Efficient 

19 Transportation Equity Act of 2004; and 

20 ‘‘(B) reallocate the funds and redistribute 

21 the obligation authority to those States that— 

22 ‘‘(i) have fully obligated all amounts 

23 allocated under this section for the fiscal 

24 year; and 
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1 ‘‘(ii) demonstrate that the State is able 

2 to obligate additional amounts for projects 

3 eligible under this section before the end of 

4 the fiscal year. 

5 ‘‘(2) EQUITY BONUS.—The calculation and dis6 tribution of funds under section 105 shall be adjusted 

7 as a result of the allocation of funds under this sub8 section. 

9 ‘‘(e) FEDERAL SHARE PAYABLE.—The Federal share 

10 payable for a project funded under this section shall be de11 termined in accordance with section 120.’’. 

12 (b) CONFORMING AMENDMENT.—The analysis for 

13 chapter 1 of title 23, United States Code, is amended by 

14 adding after the item relating to section 138 the following: 

‘‘139. Infrastructure performance and maintenance program.’’. 

15 SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYS16 TEM. 

17 (a) DECLARATION OF POLICY.—Section 101 of title 23, 

18 United States Code, is amended— 

19 (1) by striking ‘‘(b) It is hereby declared to be’’ 

20 and inserting the following: 

21 ‘‘(b) DECLARATION OF POLICY.— 

22 ‘‘(1) ACCELERATION OF CONSTRUCTION OF FED23 ERAL-AID HIGHWAY SYSTEMS.—Congress declares that 

24 it is’’; 
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1 (2) in the second paragraph, by striking ‘‘It is 

2 hereby declared’’ and inserting the following: 

3 ‘‘(2) COMPLETION OF INTERSTATE SYSTEM.— 

4 Congress declares’’; and 

5 (3) by striking the last paragraph and inserting 

6 the following: 

7 ‘‘(3) TRANSPORTATION NEEDS OF 21ST CEN8 TURY.—Congress declares that— 

9 ‘‘(A) it is in the national interest to pre10 serve and enhance the surface transportation sys11 tem to meet the needs of the United States for the 

12 21st Century; 

13 ‘‘(B) the current urban and long distance 

14 personal travel and freight movement demands 

15 have surpassed the original forecasts and travel 

16 demand patterns are expected to change; 

17 ‘‘(C) continued planning for and investment 

18 in surface transportation is critical to ensure the 

19 surface transportation system adequately meets 

20 the changing travel demands of the future; 

21 ‘‘(D) among the foremost needs that the sur22 face transportation system must meet to provide 

23 for a strong and vigorous national economy are 

24 safe, efficient, and reliable— 
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1 ‘‘(i) national and interregional per2 sonal mobility (including personal mobility 

3 in rural and urban areas) and reduced con4 gestion; 

5 ‘‘(ii) flow of interstate and inter6 national commerce and freight transpor7 tation; and 

8 ‘‘(iii) travel movements essential for 

9 national security; 

10 ‘‘(E) special emphasis should be devoted to 

11 providing safe and efficient access for the type 

12 and size of commercial and military vehicles 

13 that access designated National Highway System 

14 intermodal freight terminals; 

15 ‘‘(F) it is in the national interest to seek 

16 ways to eliminate barriers to transportation in17 vestment created by the current modal structure 

18 of transportation financing; 

19 ‘‘(G) the connection between land use and 

20 infrastructure is significant; 

21 ‘‘(H) transportation should play a signifi22 cant role in promoting economic growth, improv23 ing the environment, and sustaining the quality 

24 of life; and 
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1 ‘‘(I) the Secretary should take appropriate 

2 actions to preserve and enhance the Interstate 

3 System to meet the needs of the 21st Century.’’. 

4 (b) NATIONAL SURFACE TRANSPORTATION SYSTEM

5 STUDY.— 

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

7 (A) conduct a complete investigation and 

8 study of the current condition and future needs 

9 of the surface transportation system of the 

10 United States, including— 

11 (i) the National Highway System; 

12 (ii) the Interstate System; 

13 (iii) the strategic highway network; 

14 (iv) congressional high priority cor15 ridors; 

16 (v) intermodal connectors; 

17 (vi) freight facilities; 

18 (vii) navigable waterways; 

19 (viii) mass transportation; 

20 (ix) freight and intercity passenger 

21 rail infrastructure and facilities; and 

22 (x) surface access to airports; and 

23 (B) develop a conceptual plan, with alter24 native approaches, for the future to ensure that 

25 the surface transportation system will continue 
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1 to serve the needs of the United States, including 

2 specific recommendations regarding design and 

3 operational standards, Federal policies, and leg4 islative changes. 

5 (2) SPECIFIC ISSUES.—In conducting the inves6 tigation and study, the Secretary shall specifically 

7 address— 

8 (A) the current condition and performance 

9 of the Interstate System (including the physical 

10 condition of bridges and pavements and oper11 ational characteristics and performance), relying 

12 primarily on existing data sources; 

13 (B) the future of the Interstate System, 

14 based on a range of legislative and policy ap15 proaches for 15-, 30-, and 50-year time periods; 

16 (C) the expected demographics and business 

17 uses that impact the surface transportation sys18 tem; 

19 (D) the expected use of the surface transpor20 tation system, including the effects of changing 

21 vehicle types, modes of transportation, fleet size 

22 and weights, and traffic volumes; 

23 (E) desirable design policies and standards 

24 for future improvements of the surface transpor-
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1 tation system, including additional access 

2 points; 

3 (F) the identification of urban, rural, na4 tional, and interregional needs for the surface 

5 transportation system; 

6 (G) the potential for expansion, upgrades, 

7 or other changes to the surface transportation 

8 system, including— 

9 (i) deployment of advanced materials 

10 and intelligent technologies; 

11 (ii) critical multistate, urban, and 

12 rural corridors needing capacity, safety, 

13 and operational enhancements; 

14 (iii) improvements to intermodal link15 ages; 

16 (iv) security and military deployment 

17 enhancements; 

18 (v) strategies to enhance asset preserva19 tion; and 

20 (vi) implementation strategies; 

21 (H) the improvement of emergency pre22 paredness and evacuation using the surface 

23 transportation system, including— 

24 (i) examination of the potential use of 

25 all modes of the surface transportation sys-
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1 tem in the safe and efficient evacuation of 

2 citizens during times of emergency; 

3 (ii) identification of the location of 

4 critical bottlenecks; and 

5 (iii) development of strategies to im6 prove system redundancy, especially in 

7 areas with a high potential for terrorist at8 tacks; 

9 (I) alternatives for addressing environ10 mental concerns associated with the future devel11 opment of the surface transportation system; 

12 (J) the evaluation and assessment of the 

13 current and future capabilities for conducting 

14 system-wide real-time performance data collec15 tion and analysis, traffic monitoring, and trans16 portation systems operations and management; 

17 and 

18 (K) a range of policy and legislative alter19 natives for addressing future needs for the sur20 face transportation system, including funding 

21 needs and potential approaches to provide funds. 

22 (3) TECHNICAL ADVISORY COMMITTEE.—The 

23 Secretary shall establish a technical advisory com24 mittee, in a manner consistent with the Federal Advi-
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1 sory Committee Act (5 U.S.C. App.), to collect and 

2 evaluate technical input from— 

3 (A) the Department of Defense; 

4 (B) appropriate Federal, State, and local 

5 officials with responsibility for transportation; 

6 (C) appropriate State and local elected offi7 cials; 

8 (D) transportation and trade associations; 

9 (E) emergency management officials; 

10 (F) freight providers; 

11 (G) the general public; and 

12 (H) other entities and persons determined 

13 appropriate by the Secretary to ensure a diverse 

14 range of views. 

15 (4) REPORT.—Not later than 4 years after the 

16 date of enactment of this Act, the Secretary shall sub17 mit to the Committee on Environment and Public 

18 Works of the Senate and the Committee on Transpor19 tation and Infrastructure of the House of Representa20 tives, and make readily available to the public, a re21 port on the results of the investigation and study con22 ducted under this subsection. 
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1 SEC. 1203. FREIGHT TRANSPORTATION GATEWAYS; 

2 FREIGHT INTERMODAL CONNECTIONS. 

3 (a) FREIGHT TRANSPORTATION GATEWAYS.—Chapter 

4 3 of title 23, United States Code, is amended by adding 

5 at the end the following: 

6 ‘‘§ 325. Freight transportation gateways 

7 ‘‘(a) IN GENERAL.— 

8 ‘‘(1) ESTABLISHMENT.—The Secretary shall es9 tablish a freight transportation gateways program to 

10 improve productivity, security, and safety of freight 

11 transportation gateways, while mitigating congestion 

12 and community impacts in the area of the gateways. 

13 ‘‘(2) PURPOSES.—The purposes of the freight 

14 transportation gateways program shall be— 

15 ‘‘(A) to facilitate and support multimodal 

16 freight transportation initiatives at the State 

17 and local levels in order to improve freight 

18 transportation gateways and mitigate the im19 pact of congestion on the environment in the 

20 area of the gateways; 

21 ‘‘(B) to provide capital funding to address 

22 infrastructure and freight operational needs at 

23 freight transportation gateways; 

24 ‘‘(C) to encourage adoption of new financ25 ing strategies to leverage State, local, and pri-
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1 vate investment in freight transportation gate2 ways; 

3 ‘‘(D) to facilitate access to intermodal 

4 freight transfer facilities; and 

5 ‘‘(E) to increase economic efficiency by fa6 cilitating the movement of goods. 

7 ‘‘(b) STATE RESPONSIBILITIES.— 

8 ‘‘(1) PROJECT DEVELOPMENT PROCESS.—Each 

9 State, in coordination with metropolitan planning 

10 organizations, shall ensure that intermodal freight 

11 transportation, trade facilitation, and economic devel12 opment needs are adequately considered and fully in13 tegrated into the project development process, includ14 ing transportation planning through final design and 

15 construction of freight-related transportation projects. 

16 ‘‘(2) FREIGHT TRANSPORTATION COORDI17 NATOR.— 

18 ‘‘(A) IN GENERAL.—Each State shall des19 ignate a freight transportation coordinator. 

20 ‘‘(B) DUTIES.—The coordinator shall— 

21 ‘‘(i) foster public and private sector 

22 collaboration needed to implement complex 

23 solutions to freight transportation and 

24 freight transportation gateway problems, 

25 including— 
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1 ‘‘(I) coordination of metropolitan 

2 and statewide transportation activities 

3 with trade and economic interests; 

4 ‘‘(II) coordination with other 

5 States, agencies, and organizations to 

6 find regional solutions to freight trans7 portation problems; and 

8 ‘‘(III) coordination with local of9 ficials of the Department of Defense 

10 and the Department of Homeland Se11 curity, and with other organizations, 

12 to develop regional solutions to mili13 tary and homeland security transpor14 tation needs; and 

15 ‘‘(ii) promote programs that build pro16 fessional capacity to better plan, coordinate, 

17 integrate, and understand freight transpor18 tation needs for the State. 

19 ‘‘(c) INNOVATIVE FINANCE STRATEGIES.— 

20 ‘‘(1) IN GENERAL.—States and localities are en21 couraged to adopt innovative financing strategies for 

22 freight transportation gateway improvements, includ23 ing— 

24 ‘‘(A) new user fees; 
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1 ‘‘(B) modifications to existing user fees, in2 cluding trade facilitation charges; 

3 ‘‘(C) revenue options that incorporate pri4 vate sector investment; and 

5 ‘‘(D) a blending of Federal-aid and innova6 tive finance programs. 

7 ‘‘(2) TECHNICAL ASSISTANCE.—The Secretary 

8 shall provide technical assistance to States and local9 ities with respect to the strategies. 

10 ‘‘(d) INTERMODAL FREIGHT TRANSPORTATION

11 PROJECTS.— 

12 ‘‘(1) USE OF SURFACE TRANSPORTATION PRO13 GRAM FUNDS.—A State may obligate funds appor14 tioned to the State under section 104(b)(3) for pub15 licly-owned intermodal freight transportation projects 

16 that provide community and highway benefits by ad17 dressing economic, congestion, system reliability, secu18 rity, safety, or environmental issues associated with 

19 freight transportation gateways. 

20 ‘‘(2) ELIGIBLE PROJECTS.—A project eligible for 

21 funding under this section— 

22 ‘‘(A) may include publicly-owned inter23 modal freight transfer facilities, access to the fa24 cilities, and operational improvements for the fa25 cilities (including capital investment for intel-
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1 ligent transportation systems), except that 

2 projects located within the boundaries of port 

3 terminals shall only include the surface trans4 portation infrastructure modifications necessary 

5 to facilitate direct intermodal interchange, trans6 fer, and access into and out of the port; and 

7 ‘‘(B) may involve the combining of private 

8 and public funds.’’. 

9 (b) ELIGIBILITY FOR SURFACE TRANSPORTATION PRO10 GRAM FUNDS.—Section 133(b) of title 23, United States 

11 Code, is amended by inserting after paragraph (11) the fol12 lowing: 

13 ‘‘(12) Intermodal freight transportation projects 

14 in accordance with section 325(d)(2).’’. 

15 (c) FREIGHT INTERMODAL CONNECTIONS TO NHS.— 

16 Section 103(b) of title 23, United States Code, is amended 

17 by adding at the end the following: 

18 ‘‘(7) FREIGHT INTERMODAL CONNECTIONS TO

19 THE NHS.— 

20 ‘‘(A) FUNDING SET-ASIDE.—Of the funds 

21 apportioned to a State for each fiscal year under 

22 section 104(b)(1), an amount determined in ac23 cordance with subparagraph (B) shall only be 

24 available to the State to be obligated for projects 

25 on— 
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1 ‘‘(i) National Highway System routes 

2 connecting to intermodal freight terminals 

3 identified according to criteria specified in 

4 the report to Congress entitled ‘Pulling To5 gether: The National Highway System and 

6 its Connections to Major Intermodal Termi7 nals’ dated May 24, 1996, referred to in 

8 paragraph (1), and any modifications to 

9 the connections that are consistent with 

10 paragraph (4); 

11 ‘‘(ii) strategic highway network con12 nectors to strategic military deployment 

13 ports; and 

14 ‘‘(iii) projects to eliminate railroad 

15 crossings or make railroad crossing im16 provements. 

17 ‘‘(B) DETERMINATION OF AMOUNT.—The 

18 amount of funds for each State for a fiscal year 

19 that shall be set aside under subparagraph (A) 

20 shall be equal to the greater of— 

21 ‘‘(i) the product obtained by multi22 plying— 

23 ‘‘(I) the total amount of funds ap24 portioned to the State under section 

25 104(b)(1); by 
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1 ‘‘(II) the percentage of miles that 

2 routes specified in subparagraph (A) 

3 constitute of the total miles on the Na4 tional Highway System in the State; 

5 or 

6 ‘‘(ii) 2 percent of the annual appor7 tionment to the State of funds under 

8 104(b)(1). 

9 ‘‘(C) EXEMPTION FROM SET-ASIDE.—For 

10 any fiscal year, a State may obligate the funds 

11 otherwise set aside by this paragraph for any 

12 project that is eligible under paragraph (6) and 

13 is located in the State on a segment of the Na14 tional Highway System specified in paragraph 

15 (2), if the State certifies and the Secretary con16 curs that— 

17 ‘‘(i) the designated National Highway 

18 System intermodal connectors described in 

19 subparagraph (A) are in good condition 

20 and provide an adequate level of service for 

21 military vehicle and civilian commercial 

22 vehicle use; and 

23 ‘‘(ii) significant needs on the des24 ignated National Highway System inter-
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1 modal connectors are being met or do not 

2 exist.’’. 

3 (d) FEDERAL SHARE PAYABLE.—Section 120 of title 

4 23, United States Code, is amended by adding at the end 

5 the following: 

6 ‘‘(m) INCREASED FEDERAL SHARE FOR CONNEC7 TORS.—In the case of a project to support a National High8 way System intermodal freight connection or strategic high9 way network connector to a strategic military deployment 

10 port described in section 103(b)(7), except as otherwise pro11 vided in section 120, the Federal share of the total cost of 

12 the project shall be 90 percent.’’. 

13 (e) LENGTH LIMITATIONS.—Section 31111(e) of title 

14 49, United States Code, is amended— 

15 (1) by striking ‘‘The’’ and inserting the fol16 lowing: 

17 ‘‘(1) IN GENERAL.—The’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(2) LENGTH LIMITATIONS.—In the interests of 

20 economic competitiveness, security, and intermodal 

21 connectivity, not later than 3 years after the date of 

22 enactment of this paragraph, States shall update the 

23 list of those qualifying highways to include— 

24 ‘‘(A) strategic highway network connectors 

25 to strategic military deployment ports; and 
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1 ‘‘(B) National Highway System intermodal 

2 freight connections serving military and com3 mercial truck traffic going to major intermodal 

4 terminals as described in section 

5 103(b)(7)(A)(i).’’. 

6 (f) CONFORMING AMENDMENT.—The analysis of chap7 ter 3 of title 23, United States Code, is amended by adding 

8 at the end the following: 

‘‘325. Freight transportation gateways.’’. 

9 SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY 

10 TERMINAL AND MAINTENANCE FACILITIES; 

11 COORDINATION OF FERRY CONSTRUCTION 

12 AND MAINTENANCE. 

13 (a) IN GENERAL.—Section 147 of title 23, United 

14 States Code, is amended to read as follows: 

15 ‘‘§ 147. Construction of ferry boats and ferry terminal 

16 and maintenance facilities; coordination 

17 of ferry construction and maintenance 

18 ‘‘(a) CONSTRUCTION OF FERRY BOATS AND FERRY

19 TERMINAL FACILITIES.— 

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

21 out a program for construction of ferry boats and 

22 ferry terminal facilities in accordance with section 

23 129(c). 

24 ‘‘(2) FEDERAL SHARE.—The Federal share of the 

25 cost of construction of ferry boats and ferry terminals 
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1 and maintenance facilities under this subsection shall 

2 be 80 percent. 

3 ‘‘(3) ALLOCATION OF FUNDS.—The Secretary 

4 shall give priority in the allocation of funds under 

5 this subsection to those ferry systems, and public enti6 ties responsible for developing ferries, that— 

7 ‘‘(A) carry the greatest number of pas8 sengers and vehicles; 

9 ‘‘(B) carry the greatest number of pas10 sengers in passenger-only service; or 

11 ‘‘(C) provide critical access to areas that 

12 are not well-served by other modes of surface 

13 transportation. 

14 ‘‘(b) NON-CONTRACT AUTHORITY AUTHORIZATION OF

15 APPROPRIATIONS.— 

16 ‘‘(1) IN GENERAL.—There are authorized to be 

17 appropriated from the Highway Trust Fund (other 

18 than the Mass Transit Account) $60,000,000 for each 

19 fiscal year to carry out this section. 

20 ‘‘(2) AVAILABILITY.—Notwithstanding section 

21 118(a), funds made available under paragraph (1) 

22 shall be available in advance of an annual appropria23 tion.’’. 

24 (b) CONFORMING AMENDMENTS.— 
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1 (1) The analysis for subchapter I of chapter 1 of 

2 title 23, United States Code, is amended by striking 

3 the item relating to section 147 and inserting the fol4 lowing: 

‘‘147. Construction of ferry boats and ferry terminal and maintenance facilities.’’. 

5 (2) Section 1064 of the Intermodal Surface 

6 Transportation Efficiency Act of 1991 (105 Stat. 

7 2005) is repealed. 

8 SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN 

9 INTERSTATE HIGHWAY. 

10 (a) DESIGNATION.—Interstate Highway 86 in the 

11 State of New York, extending from the Pennsylvania border 

12 near Lake Erie through Orange County, New York, shall 

13 be known and designated as the ‘‘Daniel Patrick Moynihan 

14 Interstate Highway’’. 

15 (b) REFERENCES.—Any reference in a law, map, regu16 lation, document, paper, or other record of the United 

17 States to the highway referred to in subsection (a) shall be 

18 deemed to be a reference to the Daniel Patrick Moynihan 

19 Interstate Highway. 

20 SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY 

21 CONSTRUCTION COSTS. 

22 (a) COLLECTION OF DATA.— 

23 (1) IN GENERAL.—The Administrator of the Fed24 eral Highway Administration (referred to in this sec25 tion as the ‘‘Administrator’’) shall collect from States 
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1 any bid price data that is necessary to make State2 by-State comparisons of highway construction costs. 

3 (2) DATA REQUIRED.—In determining which 

4 data to collect and the procedures for collecting data, 

5 the Administrator shall take into account the data 

6 collection deficiencies identified in the report pre7 pared by the General Accounting Office numbered 

8 GAO–04–113R. 

9 (b) REPORT.— 

10 (1) IN GENERAL.—The Administrator shall sub11 mit to Congress an annual report on the bid price 

12 data collected under subsection (a). 

13 (2) INCLUSIONS.—The report shall include— 

14 (A) State-by-State comparisons of highway 

15 construction costs for the previous fiscal year 

16 (including the cost to construct a 1-mile road 

17 segment of a standard design, as determined by 

18 the Administrator); and 

19 (B) a description of the competitive bidding 

20 procedures used in each State; and 

21 (C) a determination by Administrator as to 

22 whether the competitive bidding procedures de23 scribed under subparagraph (B) are effective. 
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1 Subtitle C—Finance 

2 SEC. 1301. FEDERAL SHARE. 

3 Section 120 of title 23, United States Code, is amend4 ed— 

5 (1) in subsection (a), by striking paragraph (1) 

6 and inserting the following: 

7 ‘‘(1) IN GENERAL.—Except as otherwise provided 

8 in this chapter, the Federal share payable on account 

9 of any project on the Interstate System (including a 

10 project to add high occupancy vehicle lanes and a 

11 project to add auxiliary lanes but excluding a project 

12 to add any other lanes) shall be 90 percent of the total 

13 cost of the project.’’; 

14 (2) in subsection (b)— 

15 (A) by striking ‘‘Except as otherwise’’ and 

16 inserting the following: 

17 ‘‘(1) IN GENERAL.—Except as otherwise’’; 

18 (B) by striking ‘‘shall be—’’ and all that 

19 follows and inserting ‘‘shall be 80 percent of the 

20 cost of the project.’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(2) STATE-DETERMINED LOWER FEDERAL

23 SHARE.—In the case of any project subject to this 

24 subsection, a State may determine a lower Federal 
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1 share than the Federal share determined under para2 graph (1).’’; 

3 (3) by striking subsection (d) and inserting the 

4 following: 

5 ‘‘(d) INCREASED FEDERAL SHARE.— 

6 ‘‘(1) IN GENERAL.—The Federal share payable 

7 under subsection (a) or (b) may be increased for 

8 projects and activities in each State in which is lo9 cated— 

10 ‘‘(A) nontaxable Indian land; 

11 ‘‘(B) public land (reserved or unreserved); 

12 ‘‘(C) a national forest; or 

13 ‘‘(D) a national park or monument. 

14 ‘‘(2) AMOUNT.— 

15 ‘‘(A) IN GENERAL.—The Federal share for 

16 States described in paragraph (1) shall be in17 creased by a percentage of the remaining cost 

18 that— 

19 ‘‘(i) is equal to the percentage that— 

20 ‘‘(I) the area of all land described 

21 in paragraph (1) in a State; bears to 

22 ‘‘(II) the total area of the State; 

23 but 
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1 ‘‘(ii) does not exceed 95 percent of the 

2 total cost of the project or activity for which 

3 the Federal share is provided. 

4 ‘‘(B) ADJUSTMENT.—The Secretary shall 

5 adjust the Federal share for States under sub6 paragraph (A) as the Secretary determines nec7 essary, on the basis of data provided by the Fed8 eral agencies that are responsible for maintain9 ing the data.’’. 

10 SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS. 

11 Section 104 of title 23, United States Code, is amended 

12 by striking subsection (k) and inserting the following: 

13 ‘‘(k) TRANSFER OF HIGHWAY AND TRANSIT FUNDS.— 

14 ‘‘(1) TRANSFER OF HIGHWAY FUNDS FOR TRAN15 SIT PROJECTS.— 

16 ‘‘(A) IN GENERAL.—Subject to subpara17 graph (B), funds made available for transit 

18 projects or transportation planning under this 

19 title may be transferred to and administered by 

20 the Secretary in accordance with chapter 53 of 

21 title 49. 

22 ‘‘(B) NON-FEDERAL SHARE.—The provi23 sions of this title relating to the non-Federal 

24 share shall apply to the transferred funds. 
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1 ‘‘(2) TRANSFER OF TRANSIT FUNDS FOR HIGH2 WAY PROJECTS.—Funds made available for highway 

3 projects or transportation planning under chapter 53 

4 of title 49 may be transferred to and administered by 

5 the Secretary in accordance with this title. 

6 ‘‘(3) TRANSFER OF HIGHWAY FUNDS TO OTHER

7 FEDERAL AGENCIES.— 

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

9 clauses (i) and (ii) and subparagraph (B), funds 

10 made available under this title or any other Act 

11 that are derived from Highway Trust Fund 

12 (other than the Mass Transit account) may be 

13 transferred to another Federal agency if— 

14 ‘‘(i)(I) an expenditure is specifically 

15 authorized in Federal-aid highway legisla16 tion or as a line item in an appropriation 

17 act; or 

18 ‘‘(II) a State transportation depart19 ment consents to the transfer of funds; 

20 ‘‘(ii) the Secretary determines, after 

21 consultation with the State transportation 

22 department (as appropriate), that the Fed23 eral agency should carry out a project with 

24 the funds; and 
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1 ‘‘(iii) the other Federal agency agrees 

2 to accept the transfer of funds and to ad3 minister the project. 

4 ‘‘(B) ADMINISTRATION.— 

5 ‘‘(i) PROCEDURES.—A project carried 

6 out with funds transferred to a Federal 

7 agency under subparagraph (A) shall be ad8 ministered by the Federal agency under the 

9 procedures of the Federal agency. 

10 ‘‘(ii) APPROPRIATIONS.—Funds trans11 ferred to a Federal agency under subpara12 graph (A) shall not be considered an aug13 mentation of the appropriations of the Fed14 eral agency. 

15 ‘‘(iii) NON-FEDERAL SHARE.—The pro16 visions of this title, or an Act described in 

17 subparagraph (A), relating to the non-Fed18 eral share shall apply to a project carried 

19 out with the transferred funds, unless the 

20 Secretary determines that it is in the best 

21 interest of the United States that the non22 Federal share be waived. 

23 ‘‘(4) TRANSFER OF FUNDS AMONG STATES OR TO

24 FEDERAL HIGHWAY ADMINISTRATION.— 
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graphs (B) through (D), the Secretary may, at 

3 the request of a State, transfer funds apportioned 

4 or allocated to the State to another State, or to 

5 the Federal Highway Administration, for the 

6 purpose of funding 1 or more specific projects. 

7 ‘‘(B) ADMINISTRATION.—The transferred 

8 funds shall be used for the same purpose and in 

9 the same manner for which the transferred funds 

10 were authorized. 

11 ‘‘(C) APPORTIONMENT.—The transfer shall 

12 have no effect on any apportionment formula 

13 used to distribute funds to States under this sec14 tion or section 105 or 144. 

15 ‘‘(D) SURFACE TRANSPORTATION PRO16 GRAM.—Funds that are apportioned or allocated 

17 to a State under subsection (b)(3) and attributed 

18 to an urbanized area of a State with a popu19 lation of over 200,000 individuals under section 

20 133(d)(2) may be transferred under this para21 graph only if the metropolitan planning organi22 zation designated for the area concurs, in writ23 ing, with the transfer request. 

24 ‘‘(5) TRANSFER OF OBLIGATION AUTHORITY.— 

25 Obligation authority for funds transferred under this 
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1 subsection shall be transferred in the same manner 

2 and amount as the funds for the projects are trans3 ferred under this subsection.’’. 

4 SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE 

5 AND INNOVATION ACT AMENDMENTS. 

6 (a) DEFINITIONS.—Section 181 of title 23, United 

7 States Code, is amended— 

8 (1) in paragraph (3), by striking ‘‘category’’ and 

9 ‘‘offered into the capital markets’’; 

10 (2) by striking paragraph (7) and redesignating 

11 paragraphs (8) through (15) as paragraphs (7) 

12 through (14) respectively; 

13 (3) in paragraph (8) (as redesignated by para14 graph (2))— 

15 (A) in subparagraph (B), by striking the 

16 period at the end and inserting a semicolon; and 

17 (B) by striking subparagraph (D) and in18 serting the following: 

19 ‘‘(D) a project that— 

20 ‘‘(i)(I) is a project for— 

21 ‘‘(aa) a public freight rail facility 

22 or a private facility providing public 

23 benefit; 

24 ‘‘(bb) an intermodal freight trans25 fer facility; 
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1 ‘‘(cc) a means of access to a facil2 ity described in item (aa) or (bb); 

3 ‘‘(dd) a service improvement for a 

4 facility described in item (aa) or (bb) 

5 (including a capital investment for an 

6 intelligent transportation system); or 

7 ‘‘(II) comprises a series of projects de8 scribed in subclause (I) with the common 

9 objective of improving the flow of goods; 

10 ‘‘(ii) may involve the combining of pri11 vate and public sector funds, including in12 vestment of public funds in private sector 

13 facility improvements; and 

14 ‘‘(iii) if located within the boundaries 

15 of a port terminal, includes only such sur16 face transportation infrastructure modifica17 tions as are necessary to facilitate direct 

18 intermodal interchange, transfer, and access 

19 into and out of the port.’’; and 

20 (4) in paragraph (10) (as redesignated by para21 graph (2)) by striking ‘‘bond’’ and inserting ‘‘credit’’. 

22 (b) DETERMINATION OF ELIGIBILITY AND PROJECT

23 SELECTION.—Section 182 of title 23, United States Code, 

24 is amended— 

25 (1) in subsection (a)— 
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1 (A) by striking paragraphs (1) and (2) and 

2 inserting the following: 

3 ‘‘(1) INCLUSION IN TRANSPORTATION PLANS AND

4 PROGRAMS.—The project shall satisfy the applicable 

5 planning and programming requirements of sections 

6 134 and 135 at such time as an agreement to make 

7 available a Federal credit instrument is entered into 

8 under this subchapter. 

9 ‘‘(2) APPLICATION.—A State, local government, 

10 public authority, public-private partnership, or any 

11 other legal entity undertaking the project and author12 ized by the Secretary shall submit a project applica13 tion to the Secretary.’’; 

14 (B) in paragraph (3)(A)— 

15 (i) in clause (i), by striking 

16 ‘‘$100,000,000’’ and inserting 

17 ‘‘$50,000,000’’; and 

18 (ii) in clause (ii), by striking ‘‘50’’ 

19 and inserting ‘‘20’’; and 

20 (C) in paragraph (4)— 

21 (i) by striking ‘‘Project financing’’ and 

22 inserting ‘‘The Federal credit instrument’’; 

23 and 
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1 (ii) by inserting before the period at 

2 the end the following: ‘‘that also secure the 

3 project obligations’’; and 

4 (2) in subsection (b)— 

5 (A) in paragraph (1), by striking ‘‘criteria’’ 

6 the second place it appears and inserting ‘‘re7 quirements’’; and 

8 (B) in paragraph (2)(B), by inserting 

9 ‘‘(which may be the Federal credit instrument)’’ 

10 after ‘‘obligations’’. 

11 (c) SECURED LOANS.—Section 183 of title 23, United 

12 States Code, is amended— 

13 (1) in subsection (a)— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘of any project selected 

16 under section 182.’’ at the end; 

17 (ii) in subparagraphs (A) and (B), by 

18 inserting ‘‘of any project selected under sec19 tion 182’’ after ‘‘costs’’ ; and 

20 (iii) in subparagraph (B), by striking 

21 the semicolon at the end and inserting a pe22 riod; and 

23 (B) in paragraph (4)— 

24 (i) by striking ‘‘funding’’ and inserting 

25 ‘‘execution’’; and 
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1 (ii) by striking ‘‘rating,’’ and all that 

2 follows and inserting a period; 

3 (2) in subsection (b)— 

4 (A) by striking paragraph (2) and inserting 

5 the following: 

6 ‘‘(2) MAXIMUM AMOUNT.—The amount of the se7 cured loan shall not exceed the lesser of— 

8 ‘‘(A) 33 percent of the reasonably antici9 pated eligible project costs; or 

10 ‘‘(B) the amount of the senior project obli11 gations.’’; 

12 (B) in paragraph (3)(A)(i), by inserting 

13 ‘‘that also secure the senior project obligations’’ 

14 after ‘‘sources’’; and 

15 (C) in paragraph (4), by striking ‘‘market16 able’’; and 

17 (3) in subsection (c)— 

18 (A) by striking paragraph (3); 

19 (B) by redesignating paragraphs (4) and 

20 (5) as paragraphs (3) and (4), respectively; and 

21 (C) in paragraph (3) (as redesignated by 

22 subparagraph (B))— 

23 (i) in subparagraph (A), by striking 

24 ‘‘during the 10 years’’; and 
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1 (ii) in subparagraph (B)(ii), by strik2 ing ‘‘loan’’ and all that follows and insert3 ing ‘‘loan.’’. 

4 (d) LINES OF CREDIT.—Section 184 of title 23, United 

5 States Code, is amended— 

6 (1) in subsection (b)— 

7 (A) in paragraph (3), by striking ‘‘interest, 

8 any debt service reserve fund, and any other 

9 available reserve’’ and inserting ‘‘interest (but 

10 not including reasonably required financing re11 serves)’’; 

12 (B) in paragraph (4), by striking ‘‘market13 able United States Treasury securities as of the 

14 date on which the line of credit is obligated’’ and 

15 inserting ‘‘ United States Treasury securities as 

16 of the date of execution of the line of credit agree17 ment’’; and 

18 (C) in paragraph (5)(A)(i), by inserting 

19 ‘‘that also secure the senior project obligations’’ 

20 after ‘‘sources’’; and 

21 (2) in subsection (c)— 

22 (A) in paragraph (2)— 

23 (i) by striking ‘‘scheduled’’; 

24 (ii) by inserting ‘‘be scheduled to’’ after 

25 ‘‘shall’’; and 
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1 (iii) by striking ‘‘be fully repaid, with 

2 interest,’’ and inserting ‘‘to conclude, with 

3 full repayment of principal and interest,’’; 

4 and 

5 (B) by striking paragraph (3). 

6 (e) PROGRAM ADMINISTRATION.—Section 185 of title 

7 23, United States Code, is amended to read as follows: 

8 ‘‘§ 185. Program administration 

9 ‘‘(a) REQUIREMENT.—The Secretary shall establish a 

10 uniform system to service the Federal credit instruments 

11 made available under this subchapter. 

12 ‘‘(b) FEES.—The Secretary may establish fees at a 

13 level to cover all or a portion of the costs to the Federal 

14 government of servicing the Federal credit instruments. 

15 ‘‘(c) SERVICER.— 

16 ‘‘(1) IN GENERAL.—The Secretary may appoint 

17 a financial entity to assist the Secretary in servicing 

18 the Federal credit instruments. 

19 ‘‘(2) DUTIES.—The servicer shall act as the 

20 agent for the Secretary. 

21 ‘‘(3) FEE.—The servicer shall receive a servicing 

22 fee, subject to approval by the Secretary. 

23 ‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec24 retary may retain the services of expert firms, including 

25 counsel, in the field of municipal and project finance to 
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1 assist in the underwriting and servicing of Federal credit 

2 instruments.’’. 

3 (f) FUNDING.—Section 188 of title 23, United States 

4 Code, is amended to read as follows: 

5 ‘‘§ 188. Funding 

6 ‘‘(a) FUNDING.— 

7 ‘‘(1) IN GENERAL.—There is authorized to be ap8 propriated from the Highway Trust Fund (other than 

9 the Mass Transit Account) to carry out this sub10 chapter $130,000,000 for each of fiscal years 2004 

11 through 2009. 

12 ‘‘(2) ADMINISTRATIVE COSTS.—Of amounts made 

13 available under paragraph (1), the Secretary may use 

14 for the administration of this subchapter not more 

15 than $2,000,000 for each of fiscal years 2004 through 

16 2009. 

17 ‘‘(3) COLLECTED FEES AND SERVICES.—In addi18 tion to funds provided under paragraph (2)— 

19 ‘‘(A) all fees collected under this subchapter 

20 shall be made available without further appro21 priation to the Secretary until expended, for use 

22 in administering this subchapter; and 

23 ‘‘(B) the Secretary may accept and use pay24 ment or services provided by transaction partici25 pants, or third parties that are paid by partici-
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1 pants from transaction proceeds, for due dili2 gence, legal, financial, or technical services. 

3 ‘‘(4) AVAILABILITY.—Amounts made available 

4 under paragraph (1) shall remain available until ex5 pended. 

6 ‘‘(b) CONTRACT AUTHORITY.— 

7 ‘‘(1) IN GENERAL.—Notwithstanding any other 

8 provision of law, approval by the Secretary of a Fed9 eral credit instrument that uses funds made available 

10 under this subchapter shall be deemed to be accept11 ance by the United States of a contractual obligation 

12 to fund the Federal credit investment. 

13 ‘‘(2) AVAILABILITY.—Amounts authorized under 

14 this section for a fiscal year shall be available for ob15 ligation on October 1 of the fiscal year.’’. 

16 (g) REPEAL.—Section 189 of title 23, United States 

17 code, is repealed. 

18 (h) CONFORMING AMENDMENTS.—The analysis for 

19 chapter 1 of title 23, United States Code, is amended— 

20 (1) by striking the item relating to section 185 

21 and inserting the following: 

‘‘185. Program administration.’’; 

22 and 

23 (2) by striking the item relating to section 189. 
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1 SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRA2 TION PLANS AND INTERNATIONAL FUEL TAX 

3 AGREEMENTS. 

4 (a) IN GENERAL.—Chapter 317 of title 49, United 

5 States Code, is amended by adding at the end the following: 

6 ‘‘§ 31708. Facilitation of international registration 

7 plans and international fuel tax agree8 ments 

9 ‘‘The Secretary may provide assistance to any State 

10 that is participating in the International Registration Plan 

11 and International Fuel Tax Agreement, as provided in sec12 tions 31704 and 31705, respectively, and that serves as a 

13 base jurisdiction for motor carriers that are domiciled in 

14 Mexico, to assist the State with administrative costs result15 ing from serving as a base jurisdiction for motor carriers 

16 from Mexico.’’. 

17 (b) CONFORMING AMENDMENT.—The analysis for 

18 chapter 317 of title 49, United States Code, is amended by 

19 adding at the end the following: 

‘‘31708. Facilitation of international registration plans and international fuel tax 

agreements.’’. 
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1 SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE 

2 SOURCES TO SUPPORT THE HIGHWAY TRUST 

3 FUND AND FINANCE THE NEEDS OF THE SUR4 FACE TRANSPORTATION SYSTEM. 

5 (a) ESTABLISHMENT.—There is established a commis6 sion to be known as the ‘‘National Commission on Future 

7 Revenue Sources to Support the Highway Trust Fund and 

8 Finance the Needs of the Surface Transportation System’’ 

9 (referred to in this section as the ‘‘Commission’’). 

10 (b) MEMBERSHIP.— 

11 (1) COMPOSITION.—The Commission shall be 

12 composed of 11 members, of whom— 

13 (A) 3 members shall be appointed by the 

14 President; 

15 (B) 2 members shall be appointed by the 

16 Speaker of the House of Representatives; 

17 (C) 2 members shall be appointed by the 

18 minority leader of the House of Representatives; 

19 (D) 2 members shall be appointed by the 

20 majority leader of the Senate; and 

21 (E) 2 members shall be appointed by the 

22 minority leader of the Senate. 

23 (2) QUALIFICATIONS.—Members appointed under 

24 paragraph (1) shall have experience in or represent 

25 the interests of— 
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1 (A) public finance, including experience in 

2 developing State and local revenue resources; 

3 (B) surface transportation program admin4 istration; 

5 (C) organizations that use surface transpor6 tation facilities; 

7 (D) academic research into related issues; or 

8 (E) other activities that provide unique per9 spectives on current and future requirements for 

10 revenue sources to support the Highway Trust 

11 Fund. 

12 (3) DATE OF APPOINTMENTS.—The appointment 

13 of a member of the Commission shall be made not 

14 later than 120 days after the date of establishment of 

15 the Commission. 

16 (4) TERMS.—A member shall be appointed for 

17 the life of the Commission. 

18 (5) VACANCIES.—A vacancy on the Commis19 sion— 

20 (A) shall not affect the powers of the Com21 mission; and 

22 (B) shall be filled in the same manner as 

23 the original appointment was made. 

24 (6) INITIAL MEETING.—Not later than 30 days 

25 after the date on which all members of the Commis-
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1 sion have been appointed, the Commission shall hold 

2 the initial meeting of the Commission. 

3 (7) MEETINGS.—The Commission shall meet at 

4 the call of the Chairperson. 

5 (8) QUORUM.—A majority of the members of the 

6 Commission shall constitute a quorum, but a lesser 

7 number of members may hold hearings. 

8 (9) CHAIRPERSON AND VICE CHAIRPERSON.—The 

9 Commission shall select a Chairperson and Vice 

10 Chairperson from among the members of the Commis11 sion. 

12 (c) DUTIES.— 

13 (1) IN GENERAL.—The Commission shall— 

14 (A) conduct a comprehensive study of alter15 natives to replace or to supplement the fuel tax 

16 as the principal revenue source to support the 

17 Highway Trust Fund and suggest new or alter18 native sources of revenue to fund the needs of the 

19 surface transportation system over at least the 

20 next 30 years; 

21 (B) conduct the study in a manner that 

22 builds on— 

23 (i) findings, conclusions, and rec24 ommendations of the recent study conducted 

25 by the Transportation Research Board on 
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1 alternatives to the fuel tax to support high2 way program financing; and 

3 (ii) other relevant prior research; 

4 (C) consult with the Secretary and the Sec5 retary of the Treasury in conducting the study 

6 to ensure that the views of the Secretaries con7 cerning essential attributes of Highway Trust 

8 Fund revenue alternatives are considered; 

9 (D) consult with representatives of State 

10 Departments of Transportation and metropoli11 tan planning organizations and other key inter12 ested stakeholders in conducting the study to en13 sure that— 

14 (i) the views of the stakeholders on al15 ternative revenue sources to support State 

16 transportation improvement programs are 

17 considered; and 

18 (ii) any recommended Federal financ19 ing strategy takes into account State finan20 cial requirements; and 

21 (E) based on the study, make specific rec22 ommendations regarding— 

23 (i) actions that should be taken to de24 velop alternative revenue sources to support 

25 the Highway Trust Fund; and 
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1 (ii) the time frame for taking those ac2 tions. 

3 (2) SPECIFIC MATTERS.—The study shall address 

4 specifically— 

5 (A) the advantages and disadvantages of al6 ternative revenue sources to meet anticipated 

7 Federal surface transportation financial require8 ments; 

9 (B) recommendations concerning the most 

10 promising revenue sources to support long-term 

11 Federal surface transportation financing require12 ments; 

13 (C) development of a broad transition strat14 egy to move from the current tax base to new 

15 funding mechanisms, including the time frame 

16 for various components of the transition strategy; 

17 (D) recommendations for additional re18 search that may be needed to implement rec19 ommended alternatives; and 

20 (E) the extent to which revenues should re21 flect the relative use of the highway system. 

22 (3) RELATED WORK.—To the maximum extent 

23 practicable, the study shall build on related work that 

24 has been done by— 

25 (A) the Secretary of Transportation; 
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1 (B) the Secretary of Energy; 

2 (C) the Transportation Research Board; 

3 and 

4 (D) other entities and persons. 

5 (4) FACTORS.—In developing recommendations 

6 under this subsection, the Commission shall con7 sider— 

8 (A) the ability to generate sufficient reve9 nues from all modes to meet anticipated long10 term surface transportation financing needs; 

11 (B) the roles of the various levels of govern12 ment and the private sector in meeting future 

13 surface transportation financing needs; 

14 (C) administrative costs (including enforce15 ment costs) to implement each option; 

16 (D) the expected increase in non-taxed fuels 

17 and the impact of taxing those fuels; 

18 (E) the likely technological advances that 

19 could ease implementation of each option; 

20 (F) the equity and economic efficiency of 

21 each option; 

22 (G) the flexibility of different options to 

23 allow various pricing alternatives to be imple24 mented; and 
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1 (H) potential compatibility issues with 

2 State and local tax mechanisms under each al3 ternative. 

4 (5) REPORT AND RECOMMENDATIONS.—Not later 

5 than September 30, 2007, the Commission shall sub6 mit to Congress a final report that contains— 

7 (A) a detailed statement of the findings and 

8 conclusions of the Commission; and 

9 (B) the recommendations of the Commission 

10 for such legislation and administrative actions 

11 as the Commission considers appropriate. 

12 (d) POWERS.— 

13 (1) HEARINGS.—The Commission may hold such 

14 hearings, meet and act at such times and places, take 

15 such testimony, and receive such evidence as the Com16 mission considers advisable to carry out this section. 

17 (2) INFORMATION FROM FEDERAL AGENCIES.— 

18 (A) IN GENERAL.—The Commission may se19 cure directly from a Federal agency such infor20 mation as the Commission considers necessary to 

21 carry out this section. 

22 (B) PROVISION OF INFORMATION.—On re23 quest of the Chairperson of the Commission, the 

24 head of the agency shall provide the information 

25 to the Commission. 
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1 (3) POSTAL SERVICES.—The Commission may 

2 use the United States mails in the same manner and 

3 under the same conditions as other agencies of the 

4 Federal Government. 

5 (4) DONATIONS.—The Commission may accept, 

6 use, and dispose of donations of services or property. 

7 (e) COMMISSION PERSONNEL MATTERS.— 

8 (1) MEMBERS.—A member of the Commission 

9 shall serve without pay but shall be allowed travel ex10 penses, including per diem in lieu of subsistence, at 

11 rates authorized for an employee of an agency under 

12 subchapter I of chapter 57 of title 5, United States 

13 Code, while away from the home or regular place of 

14 business of the member in the performance of the du15 ties of the Commission. 

16 (2) CONTRACTOR.—The Commission may con17 tract with an appropriate organization, agency, or 

18 entity to conduct the study required under this sec19 tion, under the strategic guidance of the Commission. 

20 (3) ADMINISTRATIVE SUPPORT.—On the request 

21 of the Commission, the Administrator of the Federal 

22 Highway Administration shall provide to the Com23 mission, on a reimbursable basis, the administrative 

24 support and services necessary for the Commission to 
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1 carry out the duties of the Commission under this sec2 tion. 

3 (4) DETAIL OF DEPARTMENT PERSONNEL.— 

4 (A) IN GENERAL.—On the request of the 

5 Commission, the Secretary may detail, on a re6 imbursable basis, any of the personnel of the De7 partment to the Commission to assist the Com8 mission in carrying out the duties of the Com9 mission under this section. 

10 (B) CIVIL SERVICE STATUS.—The detail of 

11 the employee shall be without interruption or 

12 loss of civil service status or privilege. 

13 (5) COOPERATION.—The staff of the Secretary 

14 shall cooperate with the Commission in the study re15 quired under this section, including providing such 

16 nonconfidential data and information as are nec17 essary to conduct the study. 

18 (f) RELATIONSHIP TO OTHER LAWS.— 

19 (1) IN GENERAL.—Except as provided in para20 graphs (2) and (3), funds made available to carry out 

21 this section shall be available for obligation in the 

22 same manner as if the funds were apportioned under 

23 chapter 1 of title 23, United States Code. 
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1 (2) FEDERAL SHARE.—The Federal share of the 

2 cost of the study and the Commission under this sec3 tion shall be 100 percent. 

4 (3) AVAILABILITY.—Funds made available to 

5 carry out this section shall remain available until ex6 pended. 

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated from the Highway Trust 

9 Fund (other than the Mass Transit Account) to carry out 

10 this section $3,000,000 for fiscal year 2004. 

11 (h) TERMINATION.— 

12 (1) IN GENERAL.—The Commission shall termi13 nate on the date that is 180 days after the date on 

14 which the Commission submits the report of the Com15 mission under subsection (c)(5). 

16 (2) RECORDS.—Not later than the termination 

17 date for the Commission, all records and papers of the 

18 Commission shall be delivered to the Archivist of the 

19 United States for deposit in the National Archives. 

20 SEC. 1306. STATE INFRASTRUCTURE BANKS. 

21 Section 1511(b)(1)(A) of the Transportation Equity 

22 Act for the 21st Century (23 U.S.C. 181 note; 112 Stat. 

23 251) is amended by striking ‘‘Missouri,’’ and all that fol24 lows through ‘‘for the establishment’’ and inserting ‘‘Mis-
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1 souri, Rhode Island, Texas, and any other State that seeks 

2 such an agreement for the establishment’’. 

3 SEC. 1307. PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO4 GRAM. 

5 Section 109(c) of title 23, United States Code, is 

6 amended by adding at the end the following: 

7 ‘‘(3) PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO8 GRAM.— 

9 ‘‘(A) IN GENERAL.—The Secretary may un10 dertake a pilot program to demonstrate the ad11 vantages of public-private partnerships for crit12 ical capital development projects, including high13 way, bridge, and freight intermodal connector 

14 projects authorized under this title. 

15 ‘‘(B) PROJECTS.—In carrying out the pro16 gram, the Secretary shall— 

17 ‘‘(i) select not less than 10 qualified 

18 public-private partnership projects that are 

19 authorized under applicable State and local 

20 laws; and 

21 ‘‘(ii) use funds made available to carry 

22 out the program to provide to sponsors of 

23 the projects assistance for development 

24 phase activities described in section 
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1 181(1)(A), to enhance project delivery and 

2 reduce overall costs.’’. 

3 SEC. 1308. WAGERING. 

4 (a) IN GENERAL.—Chapter 35 of the Internal Revenue 

5 Code of 1986 is repealed. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 4901 of the Internal Revenue Code is 

8 amended to read as follows: 

9 ‘‘SEC. 4901. PAYMENT OF TAX. 

10 ‘‘All special taxes shall be imposed as of on the first 

11 day of July in each year, or on commencing any trade or 

12 business on which such tax is imposed. In the former case 

13 the tax shall be reckoned for 1 year, and in the latter case 

14 it shall be reckoned proportionately, from the first day of 

15 the month in which the liability to a special tax com16 menced, to and including the 30th day of June following.’’. 

17 (2) Section 4903 of such Code is amended by 

18 striking ‘‘, other than the tax imposed by section 

19 4411,’’. 

20 (3) Section 4905 of such Code is amended to 

21 read as follows: 

22 ‘‘SEC. 4905. LIABILITY IN CASE OF DEATH OR CHANGE OF 

23 LOCATION. 

24 ‘‘When any person who has paid the special tax for 

25 any trade or business dies, his spouse or child, or executors 
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1 or administrators or other legal representatives, may oc2 cupy the house or premises, and in like manner carry on, 

3 for the residue of the term for which the tax is paid, the 

4 same trade or business as the deceased before carried on, 

5 in the same house and upon the same premises, without 

6 the payment of any additional tax. When any person re7 moves from the house or premises for which any trade or 

8 business was taxed to any other place, he may carry on 

9 the trade or business specified in the register kept in the 

10 office of the official in charge of the internal revenue district 

11 at the place to which he removes, without the payment of 

12 any additional tax: Provided, That all cases of death, 

13 change, or removal, as aforesaid, with the name of the suc14 cessor to any person deceased, or of the person making such 

15 change or removal, shall be registered with the Secretary, 

16 under regulations to be prescribed by the Secretary.’’. 

17 (4) Section 4907 of such Code is amended by 

18 striking ‘‘, except the tax imposed by section 4411,’’. 

19 (5) Section 6103(i)(8)(A) of such Code is amend20 ed— 

21 (A) by striking ‘‘, except to the extent au22 thorized by subsection (f) or (p)(6), disclose to 

23 any person, other than another officer or em24 ployee of such office whose official duties require 

25 such disclosure, any return or return informa-
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1 tion described in section 4424(a) in a form 

2 which can be associated with, or otherwise iden3 tify, directly or indirectly, a particular tax4 payer, nor shall such officer or employee disclose 

5 any other’’ and inserting ‘‘disclose any’’, and 

6 (B) by striking ‘‘such other officer’’ and in7 serting ‘‘such officer’’. 

8 (6) Section 6103(o) of such Code is amended to 

9 read as follows: 

10 ‘‘(o) DISCLOSURE OF RETURNS AND RETURN INFOR11 MATION WITH RESPECT TO TAXES IMPOSED BY SUBTITLE

12 E.—Returns and return information with respect to taxes 

13 imposed by subtitle E (relating to taxes on alcohol, tobacco, 

14 and firearms) shall be open to inspection by or disclosure 

15 to officers and employees of a Federal agency whose official 

16 duties require such inspection or disclosure.’’. 

17 (7)(A) Subchapter B of chapter 65 of such Code 

18 is amended by striking section 6419 (relating to ex19 cise tax on wagering). 

20 (B) The table of section of subchapter B of chap21 ter 65 of such Code is amended by striking the item 

22 relating to section 6419. 

23 (8) Section 6806 of such Code is amended by 

24 striking ‘‘under subchapter B of chapter 35, under 
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1 subchapter B of chapter 36,’’ and inserting ‘‘under 

2 subchapter B of chapter 36’’. 

3 (9) Section 7012 of such Code is amended by 

4 striking paragraph (2) and by redesignating para5 graphs (3), (4), and (5) as paragraphs (2), (3), and 

6 (4), respectively. 

7 (10)(A) Subchapter B of chapter 75 of such Code 

8 is amended by striking section 7262 (relating to vio9 lation of occupational tax laws relating to wagering10 failure to pay special tax). 

11 (B) The table of sections of subchapter B of chap12 ter 75 of such Code is amended by striking the item 

13 relating to section 7262. 

14 (11) Section 7272 of such Code, as amended by 

15 section 5244 of this Act, is amended to read as fol16 lows: 

17 ‘‘SEC. 7272. PENALTY FOR FAILURE TO REGISTER. 

18 ‘‘Any person (other than persons required to register 

19 under subtitle E, or persons engaging in a trade or business 

20 on which a special tax is imposed by such subtitle) who 

21 fails to register with the Secretary as required by this title 

22 or by regulations issued thereunder shall be liable to a pen23 alty of $50 ($10,000 in the case of a failure to register under 

24 section 4101).’’. 
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1 (12) Section 7613(a) is amended by striking ‘‘or 

2 other data in the case of’’ and all that follows and in3 serting ‘‘or other data in the case of alcohol, tobacco, 

4 and firearms taxes, see subtitle E.’’. 

5 (13) The table of chapters of subtitle D of such 

6 Code is amended by striking the item relating to 

7 chapter 35. 

8 (c) EFFECTIVE DATE.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by this section shall 

11 apply to wagers placed after the date of the enactment 

12 of this Act. 

13 (2) SPECIAL TAXES.—In the case of amendments 

14 made by this section relating to special taxes imposed 

15 by subchapter B of chapter 35, the amendments made 

16 by this section shall take effect on July 1, 2004. 

17 Subtitle D—Safety 

18 SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 

19 (a) SAFETY IMPROVEMENT.— 

20 (1) IN GENERAL.—Section 148 of title 23, 

21 United States Code, is amended to read as follows: 

22 ‘‘§ 148. Highway safety improvement program 

23 ‘‘(a) DEFINITIONS.—In this section: 

24 ‘‘(1) HIGHWAY SAFETY IMPROVEMENT PRO25 GRAM.—The term ‘highway safety improvement pro-
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1 gram’ means the program carried out under this sec2 tion. 

3 ‘‘(2) HIGHWAY SAFETY IMPROVEMENT

4 PROJECT.— 

5 ‘‘(A) IN GENERAL.—The term ‘highway 

6 safety improvement project’ means a project de7 scribed in the State strategic highway safety 

8 plan that— 

9 ‘‘(i) corrects or improves a hazardous 

10 road location or feature; or 

11 ‘‘(ii) addresses a highway safety prob12 lem. 

13 ‘‘(B) INCLUSIONS.—The term ‘highway safe14 ty improvement project’ includes a project for— 

15 ‘‘(i) an intersection safety improve16 ment; 

17 ‘‘(ii) pavement and shoulder widening 

18 (including addition of a passing lane to 

19 remedy an unsafe condition); 

20 ‘‘(iii) installation of rumble strips or 

21 another warning device, if the rumble strips 

22 or other warning devices do not adversely 

23 affect the safety or mobility of bicyclists and 

24 pedestrians; 
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1 ‘‘(iv) installation of a skid-resistant 

2 surface at an intersection or other location 

3 with a high frequency of accidents; 

4 ‘‘(v) an improvement for pedestrian or 

5 bicyclist safety; 

6 ‘‘(vi)(I) construction of any project for 

7 the elimination of hazards at a railway8 highway crossing that is eligible for funding 

9 under section 130, including the separation 

10 or protection of grades at railway-highway 

11 crossings; 

12 ‘‘(II) construction of a railway-high13 way crossing safety feature; or 

14 ‘‘(III) the conduct of a model traffic 

15 enforcement activity at a railway-highway 

16 crossing; 

17 ‘‘(vii) construction of a traffic calming 

18 feature; 

19 ‘‘(viii) elimination of a roadside obsta20 cle; 

21 ‘‘(ix) improvement of highway signage 

22 and pavement markings; 

23 ‘‘(x) installation of a priority control 

24 system for emergency vehicles at signalized 

25 intersections; 
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1 ‘‘(xi) installation of a traffic control or 

2 other warning device at a location with 

3 high accident potential; 

4 ‘‘(xii) safety-conscious planning; 

5 ‘‘(xiii) improvement in the collection 

6 and analysis of crash data; 

7 ‘‘(xiv) planning, integrated, interoper8 able emergency communications, equipment, 

9 operational activities, or traffic enforcement 

10 activities (including police assistance) relat11 ing to workzone safety; 

12 ‘‘(xv) installation of guardrails, bar13 riers (including barriers between construc14 tion work zones and traffic lanes for the 

15 safety of motorists and workers), and crash 

16 attenuators; 

17 ‘‘(xvi) the addition or retrofitting of 

18 structures or other measures to eliminate or 

19 reduce accidents involving vehicles and 

20 wildlife; or 

21 ‘‘(xvii) installation and maintenance 

22 of signs (including fluorescent, yellow-green 

23 signs) at pedestrian-bicycle crossings and in 

24 school zones. 
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1 ‘‘(3) SAFETY PROJECT UNDER ANY OTHER SEC2 TION.— 

3 ‘‘(A) IN GENERAL.—The term ‘safety project 

4 under any other section’ means a project carried 

5 out for the purpose of safety under any other sec6 tion of this title. 

7 ‘‘(B) INCLUSION.—The term ‘safety project 

8 under any other section’ includes a project to— 

9 ‘‘(i) promote the awareness of the pub10 lic and educate the public concerning high11 way safety matters; or 

12 ‘‘(ii) enforce highway safety laws. 

13 ‘‘(4) STATE HIGHWAY SAFETY IMPROVEMENT

14 PROGRAM.—The term ‘State highway safety improve15 ment program’ means projects or strategies included 

16 in the State strategic highway safety plan carried out 

17 as part of the State transportation improvement pro18 gram under section 135(f). 

19 ‘‘(5) STATE STRATEGIC HIGHWAY SAFETY

20 PLAN.—The term ‘State strategic highway safety 

21 plan’ means a plan developed by the State transpor22 tation department that— 

23 ‘‘(A) is developed after consultation with— 

24 ‘‘(i) a highway safety representative of 

25 the Governor of the State; 
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1 ‘‘(ii) regional transportation planning 

2 organizations and metropolitan planning 

3 organizations, if any; 

4 ‘‘(iii) representatives of major modes of 

5 transportation; 

6 ‘‘(iv) State and local traffic enforce7 ment officials; 

8 ‘‘(v) persons responsible for admin9 istering section 130 at the State level; 

10 ‘‘(vi) representatives conducting Oper11 ation Lifesaver; 

12 ‘‘(vii) representatives conducting a 

13 motor carrier safety program under section 

14 31104 or 31107 of title 49; 

15 ‘‘(viii) motor vehicle administration 

16 agencies; and 

17 ‘‘(ix) other major State and local safe18 ty stakeholders; 

19 ‘‘(B) analyzes and makes effective use of 

20 State, regional, or local crash data; 

21 ‘‘(C) addresses engineering, management, 

22 operation, education, enforcement, and emer23 gency services elements (including integrated, 

24 interoperable emergency communications) of 
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1 highway safety as key factors in evaluating high2 way projects; 

3 ‘‘(D) considers safety needs of, and high-fa4 tality segments of, public roads; 

5 ‘‘(E) considers the results of State, regional, 

6 or local transportation and highway safety plan7 ning processes; 

8 ‘‘(F) describes a program of projects or 

9 strategies to reduce or eliminate safety hazards; 

10 ‘‘(G) is approved by the Governor of the 

11 State or a responsible State agency; and 

12 ‘‘(H) is consistent with the requirements of 

13 section 135(f). 

14 ‘‘(b) PROGRAM.— 

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

16 out a highway safety improvement program. 

17 ‘‘(2) PURPOSE.—The purpose of the highway 

18 safety improvement program shall be to achieve a sig19 nificant reduction in traffic fatalities and serious in20 juries on public roads. 

21 ‘‘(c) ELIGIBILITY.— 

22 ‘‘(1) IN GENERAL.—To obligate funds appor23 tioned under section 104(b)(5) to carry out this sec24 tion, a State shall have in effect a State highway safe25 ty improvement program under which the State— 
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1 ‘‘(A) develops and implements a State stra2 tegic highway safety plan that identifies and 

3 analyzes highway safety problems and opportu4 nities as provided in paragraph (2); 

5 ‘‘(B) produces a program of projects or 

6 strategies to reduce identified safety problems; 

7 ‘‘(C) evaluates the plan on a regular basis 

8 to ensure the accuracy of the data and priority 

9 of proposed improvements; and 

10 ‘‘(D) submits to the Secretary an annual re11 port that— 

12 ‘‘(i) describes, in a clearly understand13 able fashion, not less than 5 percent of loca14 tions determined by the State, using criteria 

15 established in accordance with paragraph 

16 (2)(B)(ii), as exhibiting the most severe 

17 safety needs; and 

18 ‘‘(ii) contains an assessment of— 

19 ‘‘(I) potential remedies to haz20 ardous locations identified; 

21 ‘‘(II) estimated costs associated 

22 with those remedies; and 

23 ‘‘(III) impediments to implemen24 tation other than cost associated with 

25 those remedies. 
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1 ‘‘(2) IDENTIFICATION AND ANALYSIS OF HIGH2 WAY SAFETY PROBLEMS AND OPPORTUNITIES.—As 

3 part of the State strategic highway safety plan, a 

4 State shall— 

5 ‘‘(A) have in place a crash data system with 

6 the ability to perform safety problem identifica7 tion and countermeasure analysis; 

8 ‘‘(B) based on the analysis required by sub9 paragraph (A)— 

10 ‘‘(i) identify hazardous locations, sec11 tions, and elements (including roadside ob12 stacles, railway-highway crossing needs, 

13 and unmarked or poorly marked roads) that 

14 constitute a danger to motorists, bicyclists, 

15 pedestrians, and other highway users; and 

16 ‘‘(ii) using such criteria as the State 

17 determines to be appropriate, establish the 

18 relative severity of those locations, in terms 

19 of accidents, injuries, deaths, traffic volume 

20 levels, and other relevant data; 

21 ‘‘(C) adopt strategic and performance-based 

22 goals that— 

23 ‘‘(i) address traffic safety, including 

24 behavioral and infrastructure problems and 

25 opportunities on all public roads; 
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1 ‘‘(ii) focus resources on areas of great2 est need; and 

3 ‘‘(iii) are coordinated with other State 

4 highway safety programs; 

5 ‘‘(D) advance the capabilities of the State 

6 for traffic records data collection, analysis, and 

7 integration with other sources of safety data 

8 (such as road inventories) in a manner that— 

9 ‘‘(i) complements the State highway 

10 safety program under chapter 4 and the 

11 commercial vehicle safety plan under sec12 tion 31102 of title 49; 

13 ‘‘(ii) includes all public roads; 

14 ‘‘(iii) identifies hazardous locations, 

15 sections, and elements on public roads that 

16 constitute a danger to motorists, bicyclists, 

17 pedestrians, and other highway users; and 

18 ‘‘(iv) includes a means of identifying 

19 the relative severity of hazardous locations 

20 described in clause (iii) in terms of acci21 dents, injuries, deaths, and traffic volume 

22 levels; 

23 ‘‘(E)(i) determine priorities for the correc24 tion of hazardous road locations, sections, and 

25 elements (including railway-highway crossing 
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1 improvements), as identified through crash data 

2 analysis; 

3 ‘‘(ii) identify opportunities for preventing 

4 the development of such hazardous conditions; 

5 and 

6 ‘‘(iii) establish and implement a schedule of 

7 highway safety improvement projects for hazard 

8 correction and hazard prevention; and 

9 ‘‘(F)(i) establish an evaluation process to 

10 analyze and assess results achieved by highway 

11 safety improvement projects carried out in ac12 cordance with procedures and criteria established 

13 by this section; and 

14 ‘‘(ii) use the information obtained under 

15 clause (i) in setting priorities for highway safety 

16 improvement projects. 

17 ‘‘(d) ELIGIBLE PROJECTS.— 

18 ‘‘(1) IN GENERAL.—A State may obligate funds 

19 apportioned to the State under section 104(b)(5) to 

20 carry out— 

21 ‘‘(A) any highway safety improvement 

22 project on any public road or publicly owned bi23 cycle or pedestrian pathway or trail; or 

24 ‘‘(B) as provided in subsection (e), for other 

25 safety projects. 
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1 ‘‘(2) USE OF OTHER FUNDING FOR SAFETY.— 

2 ‘‘(A) EFFECT OF SECTION.—Nothing in this 

3 section prohibits the use of funds made available 

4 under other provisions of this title for highway 

5 safety improvement projects. 

6 ‘‘(B) USE OF OTHER FUNDS.—States are 

7 encouraged to address the full scope of their safe8 ty needs and opportunities by using funds made 

9 available under other provisions of this title (ex10 cept a provision that specifically prohibits that 

11 use). 

12 ‘‘(e) FLEXIBLE FUNDING FOR STATES WITH A STRA13 TEGIC HIGHWAY SAFETY PLAN.— 

14 ‘‘(1) IN GENERAL.—To further the implementa15 tion of a State strategic highway safety plan, a State 

16 may use up to 25 percent of the amount of funds 

17 made available under this section for a fiscal year to 

18 carry out safety projects under any other section as 

19 provided in the State strategic highway safety plan. 

20 ‘‘(2) OTHER TRANSPORTATION AND HIGHWAY

21 SAFETY PLANS.—Nothing in this subsection requires a 

22 State to revise any State process, plan, or program 

23 in effect on the date of enactment of this section. 

24 ‘‘(f) REPORTS.— 
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1 ‘‘(1) IN GENERAL.—A State shall submit to the 

2 Secretary a report that— 

3 ‘‘(A) describes progress being made to im4 plement highway safety improvement projects 

5 under this section; 

6 ‘‘(B) assesses the effectiveness of those im7 provements; and 

8 ‘‘(C) describes the extent to which the im9 provements funded under this section contribute 

10 to the goals of— 

11 ‘‘(i) reducing the number of fatalities 

12 on roadways; 

13 ‘‘(ii) reducing the number of roadway14 related injuries; 

15 ‘‘(iii) reducing the occurrences of road16 way-related crashes; 

17 ‘‘(iv) mitigating the consequences of 

18 roadway-related crashes; and 

19 ‘‘(v) reducing the occurrences of road20 way-railroad grade crossing crashes. 

21 ‘‘(2) CONTENTS; SCHEDULE.—The Secretary 

22 shall establish the content and schedule for a report 

23 under paragraph (1). 
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1 ‘‘(3) TRANSPARENCY.—The Secretary shall make 

2 reports under subsection (c)(1)(D) available to the 

3 public through— 

4 ‘‘(A) the Internet site of the Department; 

5 and 

6 ‘‘(B) such other means as the Secretary de7 termines to be appropriate. 

8 ‘‘(4) DISCOVERY AND ADMISSION INTO EVIDENCE

9 OF CERTAIN REPORTS, SURVEYS, AND INFORMA10 TION.—Notwithstanding any other provision of law, 

11 reports, surveys, schedules, lists, or data compiled or 

12 collected for any purpose directly relating to para13 graph (1) or subsection (c)(1)(D), or published by the 

14 Secretary in accordance with paragraph (3), shall not 

15 be subject to discovery or admitted into evidence in a 

16 Federal or State court proceeding or considered for 

17 other purposes in any action for damages arising 

18 from any occurrence at a location identified or ad19 dressed in such reports, surveys, schedules, lists, or 

20 other data. 

21 ‘‘(g) FEDERAL SHARE OF HIGHWAY SAFETY IMPROVE22 MENT PROJECTS.—Except as provided in sections 120 and 

23 130, the Federal share of the cost of a highway safety im24 provement project carried out with funds made available 

25 under this section shall be 90 percent. 
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1 ‘‘(h) FUNDS FOR BICYCLE AND PEDESTRIAN SAFE2 TY.—A State shall allocate for bicycle and pedestrian im3 provements in the State a percentage of the funds remain4 ing after implementation of sections 130(e) and 150, in an 

5 amount that is equal to or greater than the percentage of 

6 all fatal crashes in the States involving bicyclists and pedes7 trians. 

8 ‘‘(i) ROADWAY SAFETY IMPROVEMENTS FOR OLDER

9 DRIVERS AND PEDESTRIANS.—For each of fiscal years 2004 

10 through 2009, $25,000,000 is authorized to be appropriated 

11 out of the Highway Trust Fund (other than the Mass Tran12 sit Account) for projects in all States to improve traffic 

13 signs and pavement markings in a manner consistent with 

14 the recommendations included in the publication of the Fed15 eral Highway Administration entitled ‘Guidelines and Rec16 ommendations to Accommodate Older Drivers and Pedes17 trians (FHWA-RD-01-103)’ and dated October 2001.’’. 

18 (2) ALLOCATIONS OF APPORTIONED FUNDS.— 

19 Section 133(d) of title 23, United States Code, is 

20 amended— 

21 (A) by striking paragraph (1); 

22 (B) by redesignating paragraphs (2) 

23 through (5) as paragraphs (1) through (4), re24 spectively; 
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1 (C) in paragraph (2) (as redesignated by 

2 subparagraph (B))— 

3 (i) in the first sentence of subpara4 graph (A)— 

5 (I) by striking ‘‘subparagraphs 

6 (C) and (D)’’ and inserting ‘‘subpara7 graph (C)’’; and 

8 (II) by striking ‘‘80 percent’’ and 

9 inserting ‘‘90 percent’’; 

10 (ii) in subparagraph (B), by striking 

11 ‘‘tobe’’ and inserting ‘‘to be’’; 

12 (iii) by striking subparagraph (C); 

13 (iv) by redesignating subparagraphs 

14 (D) and (E) as subparagraphs (C) and (D), 

15 respectively; and 

16 (v) in subparagraph (C) (as redesig17 nated by clause (iv)), by adding a period at 

18 the end; and 

19 (D) in paragraph (4)(A) (as redesignated 

20 by subparagraph (B)), by striking ‘‘paragraph 

21 (2)’’ and inserting ‘‘paragraph (1)’’. 

22 (3) ADMINISTRATION.—Section 133(e) of title 23, 

23 United States Code, is amended in each of para24 graphs (3)(B)(i), (5)(A), and (5)(B) of subsection (e), 
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1 by striking ‘‘(d)(2)’’ each place it appears and insert2 ing ‘‘(d)(1)’’. 

3 (4) CONFORMING AMENDMENTS.— 

4 (A) The analysis for chapter 1 of title 23, 

5 United States Code, is amended by striking the 

6 item relating to section 148 and inserting the 

7 following: 

‘‘148. Highway safety improvement program.’’. 

8 (B) Section 104(g) of title 23, United States 

9 Code, is amended in the first sentence by striking 

10 ‘‘sections 130, 144, and 152 of this title’’ and in11 serting ‘‘sections 130 and 144’’. 

12 (C) Section 126 of title 23, United States 

13 Code, is amended— 

14 (i) in subsection (a), by inserting 

15 ‘‘under’’ after ‘‘State’s apportionment’’; and 

16 (ii) in subsection (b)— 

17 (I) in the first sentence, by strik18 ing ‘‘the last sentence of section 

19 133(d)(1) or to section 104(f) or to sec20 tion 133(d)(3)’’ and inserting ‘‘section 

21 104(f) or 133(d)(2)’’; and 

22 (II) in the second sentence, by 

23 striking ‘‘or 133(d)(2)’’. 

24 (D) Sections 154, 164, and 409 of title 23, 

25 United States Code, are amended by striking 
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1 ‘‘152’’ each place it appears and inserting 

2 ‘‘148’’. 

3 (b) APPORTIONMENT OF HIGHWAY SAFETY IMPROVE4 MENT PROGRAM FUNDS.—Section 104(b) of title 23, United 

5 States Code, is amended— 

6 (1) in the matter preceding paragraph (1), by 

7 inserting after ‘‘Improvement program,’’ the fol8 lowing: ‘‘the highway safety improvement program,’’; 

9 and 

10 (2) by adding at the end the following: 

11 ‘‘(5) HIGHWAY SAFETY IMPROVEMENT PRO12 GRAM.— 

13 ‘‘(A) IN GENERAL.—For the highway safety 

14 improvement program, in accordance with the 

15 following formula: 

16 ‘‘(i) 25 percent of the apportionments 

17 in the ratio that— 

18 ‘‘(I) the total lane miles of Fed19 eral-aid highways in each State; bears 

20 to 

21 ‘‘(II) the total lane miles of Fed22 eral-aid highways in all States. 

23 ‘‘(ii) 40 percent of the apportionments 

24 in the ratio that— 
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1 ‘‘(I) the total vehicle miles trav2 eled on lanes on Federal-aid highways 

3 in each State; bears to 

4 ‘‘(II) the total vehicle miles trav5 eled on lanes on Federal-aid highways 

6 in all States. 

7 ‘‘(iii) 35 percent of the apportionments 

8 in the ratio that— 

9 ‘‘(I) the estimated tax payments 

10 attributable to highway users in each 

11 State paid into the Highway Trust 

12 Fund (other than the Mass Transit Ac13 count) in the latest fiscal year for 

14 which data are available; bears to 

15 ‘‘(II) the estimated tax payments 

16 attributable to highway users in all 

17 States paid into the Highway Trust 

18 Fund (other than the Mass Transit Ac19 count) in the latest fiscal year for 

20 which data are available. 

21 ‘‘(B) MINIMUM APPORTIONMENT.—Notwith22 standing subparagraph (A), each State shall receive a minimum of 1 23 ⁄2 of 1 percent of the funds 

24 apportioned under this paragraph.’’. 
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1 (c) ELIMINATION OF HAZARDS RELATING TO RAIL2 WAY-HIGHWAY CROSSINGS.— 

3 (1) FUNDS FOR RAILWAY-HIGHWAY CROSS4 INGS.—Section 130(e) of title 23, United States Code, 

5 is amended by inserting before ‘‘At least’’ the fol6 lowing: ‘‘For each fiscal year, at least $200,000,000 

7 of the funds authorized and expended under section 

8 148 shall be available for the elimination of hazards 

9 and the installation of protective devices at railway10 highway crossings.’’. 

11 (2) BIENNIAL REPORTS TO CONGRESS.—Section 

12 130(g) of title 23, United States Code, is amended in 

13 the third sentence— 

14 (A) by inserting ‘‘and the Committee on 

15 Commerce, Science, and Transportation,’’ after 

16 ‘‘Public Works’’; and 

17 (B) by striking ‘‘not later than April 1 of 

18 each year’’ and inserting ‘‘every other year’’. 

19 (3) EXPENDITURE OF FUNDS.—Section 130 of 

20 title 23, United States Code, is amended by adding 

21 at the end the following: 

22 ‘‘(k) EXPENDITURE OF FUNDS.—Funds made avail23 able to carry out this section shall be— 
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1 ‘‘(1) available for expenditure on compilation 

2 and analysis of data in support of activities carried 

3 out under subsection (g); and 

4 ‘‘(2) apportioned in accordance with section 

5 104(b)(5).’’. 

6 (d) TRANSITION.— 

7 (1) IMPLEMENTATION.—Except as provided in 

8 paragraph (2), the Secretary shall approve obliga9 tions of funds apportioned under section 104(b)(5) of 

10 title 23, United States Code (as added by subsection 

11 (b)) to carry out section 148 of that title, only if, not 

12 later than October 1 of the second fiscal year after the 

13 date of enactment of this Act, a State has developed 

14 and implemented a State strategic highway safety 

15 plan as required under section 148(c) of that title. 

16 (2) INTERIM PERIOD.— 

17 (A) IN GENERAL.—Before October 1 of the 

18 second fiscal year after the date of enactment of 

19 this Act and until the date on which a State de20 velops and implements a State strategic highway 

21 safety plan, the Secretary shall apportion funds 

22 to a State for the highway safety improvement 

23 program and the State may obligate funds ap24 portioned to the State for the highway safety im25 provement program under section 148 for 
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1 projects that were eligible for funding under sec2 tions 130 and 152 of that title, as in effect on 

3 the day before the date of enactment of this Act. 

4 (B) NO STRATEGIC HIGHWAY SAFETY

5 PLAN.—If a State has not developed a strategic 

6 highway safety plan by October 1 of the second 

7 fiscal year after the date of enactment of this 

8 Act, but demonstrates to the satisfaction of the 

9 Secretary that progress is being made toward de10 veloping and implementing such a plan, the Sec11 retary shall continue to apportion funds for 1 

12 additional fiscal year for the highway safety im13 provement program under section 148 of title 23, 

14 United States Code, to the State, and the State 

15 may continue to obligate funds apportioned to 

16 the State under this section for projects that were 

17 eligible for funding under sections 130 and 152 

18 of that title, as in effect on the day before the 

19 date of enactment of this Act. 

20 (C) PENALTY.—If a State has not adopted 

21 a strategic highway safety plan by the date that 

22 is 2 years after the date of enactment of this Act, 

23 funds made available to the State under section 

24 1101(6) shall be redistributed to other States in 
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1 accordance with section 104(b)(3) of title 23, 

2 United States Code. 

3 SEC. 1402. OPERATION LIFESAVER. 

4 Section 104(d)(1) of title 23, United States Code, is 

5 amended— 

6 (1) by striking ‘‘subsection (b)(3)’’ and inserting 

7 ‘‘subsection (b)(5)’’; and 

8 (2) by striking ‘‘$500,000’’ and inserting 

9 ‘‘$600,000’’. 

10 SEC. 1403. LICENSE SUSPENSION. 

11 Section 164(a) of title 23, United States Code, is 

12 amended by striking paragraph (3) and inserting the fol13 lowing: 

14 ‘‘(3) LICENSE SUSPENSION.—The term ‘license 

15 suspension’ means— 

16 ‘‘(A) the suspension of all driving privileges 

17 of an individual for the duration of the suspen18 sion period; or 

19 ‘‘(B) a combination of suspension of all 

20 driving privileges of an individual for the first 

21 90 days of the suspension period, followed by re22 instatement of limited driving privileges requir23 ing the individual to operate only motor vehicles 

24 equipped with an ignition interlock system or 
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1 other device approved by the Secretary during 

2 the remainder of the suspension period.’’. 

3 SEC. 1404. BUS AXLE WEIGHT EXEMPTION. 

4 Section 1023 of the Intermodal Surface Transpor5 tation Efficiency Act of 1991 (23 U.S.C. 127 note; 105 Stat. 

6 1951) is amended by striking subsection (h) and inserting 

7 the following: 

8 ‘‘(h) OVER-THE-ROAD BUS AND PUBLIC TRANSIT VE9 HICLE EXEMPTION.— 

10 ‘‘(1) IN GENERAL.—The second sentence of sec11 tion 127 of title 23, United States Code (relating to 

12 axle weight limitations for vehicles using the Dwight 

13 D. Eisenhower System of Interstate and Defense 

14 Highways), shall not apply to— 

15 ‘‘(A) any over-the-road bus (as defined in 

16 section 301 of the Americans With Disabilities 

17 Act of 1990 (42 U.S.C. 12181)); or 

18 ‘‘(B) any vehicle that is regularly and ex19 clusively used as an intrastate public agency 

20 transit passenger bus. 

21 ‘‘(2) STATE ACTION.—No State or political sub22 division of a State, or any political authority of 2 or 

23 more States, shall impose any axle weight limitation 

24 on any vehicle described in paragraph (1) in any case 
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1 in which such a vehicle is using the Dwight D. Eisen2 hower System of Interstate and Defense Highways.’’. 

3 SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM. 

4 (a) IN GENERAL.—Subchapter I of chapter I of title 

5 23, United States Code, is amended by inserting after sec6 tion 149 the following: 

7 ‘‘§ 150. Safe routes to schools program 

8 ‘‘(a) DEFINITIONS.—In this section: 

9 ‘‘(1) PRIMARY AND SECONDARY SCHOOL.—The 

10 term ‘primary and secondary school’ means a school 

11 that provides education to children in any of grades 

12 kindergarten through 12. 

13 ‘‘(2) PROGRAM.—The term ‘program’ means the 

14 safe routes to schools program established under sub15 section (b). 

16 ‘‘(3) VICINITY OF A SCHOOL.—The term ‘vicinity 

17 of a school’ means the area within 2 miles of a pri18 mary or secondary school. 

19 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish 

20 and carry out a safe routes to school program for the benefit 

21 of children in primary and secondary schools in accordance 

22 with this section. 

23 ‘‘(c) PURPOSES.—The purposes of the program shall 

24 be— 
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1 ‘‘(1) to enable and to encourage children to walk 

2 and bicycle to school; 

3 ‘‘(2) to encourage a healthy and active lifestyle 

4 by making walking and bicycling to school safer and 

5 more appealing transportation alternatives; and 

6 ‘‘(3) to facilitate the planning, development, and 

7 implementation of projects and activities that will 

8 improve safety in the vicinity of schools. 

9 ‘‘(d) ELIGIBLE RECIPIENTS.—A State shall use 

10 amounts apportioned under this section to provide finan11 cial assistance to State, regional, and local agencies that 

12 demonstrate an ability to meet the requirements of this sec13 tion. 

14 ‘‘(e) ELIGIBLE PROJECTS AND ACTIVITIES.— 

15 ‘‘(1) INFRASTRUCTURE-RELATED PROJECTS.— 

16 ‘‘(A) IN GENERAL.—Amounts apportioned 

17 to a State under this section may be used for the 

18 planning, design, and construction of infrastruc19 ture-related projects to encourage walking and 

20 bicycling to school, including— 

21 ‘‘(i) sidewalk improvements; 

22 ‘‘(ii) traffic calming and speed reduc23 tion improvements; 

24 ‘‘(iii) pedestrian and bicycle crossing 

25 improvements; 
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1 ‘‘(iv) on-street bicycle facilities; 

2 ‘‘(v) off-street bicycle and pedestrian 

3 facilities; 

4 ‘‘(vi) secure bicycle parking facilities; 

5 ‘‘(vii) traffic signal improvements; and 

6 ‘‘(viii) pedestrian-railroad grade cross7 ing improvements. 

8 ‘‘(B) LOCATION OF PROJECTS.—Infrastruc9 ture-related projects under subparagraph (A) 

10 may be carried out on— 

11 ‘‘(i) any public road in the vicinity of 

12 a school; or 

13 ‘‘(ii) any bicycle or pedestrian path14 way or trail in the vicinity of a school. 

15 ‘‘(2) BEHAVIORAL ACTIVITIES.— 

16 ‘‘(A) IN GENERAL.—In addition to projects 

17 described in paragraph (1), amounts appor18 tioned to a State under this section may be used 

19 for behavioral activities to encourage walking 

20 and bicycling to school, including— 

21 ‘‘(i) public awareness campaigns and 

22 outreach to press and community leaders; 

23 ‘‘(ii) traffic education and enforcement 

24 in the vicinity of schools; and 
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1 ‘‘(iii) student sessions on bicycle and 

2 pedestrian safety, health, and environment. 

3 ‘‘(B) ALLOCATION.—Of the amounts appor4 tioned to a State under this section for a fiscal 

5 year, not less than 10 percent shall be used for 

6 behavioral activities under this paragraph. 

7 ‘‘(f) FUNDING.— 

8 ‘‘(1) SET ASIDE.—Before apportioning amounts 

9 to carry out section 148 for a fiscal year, the Sec10 retary shall set aside and use $70,000,000 to carry 

11 out this section. 

12 ‘‘(2) APPORTIONMENT.—Amounts made available 

13 to carry out this section shall be apportioned to 

14 States in accordance with section 104(b)(5). 

15 ‘‘(3) ADMINISTRATION OF AMOUNTS.—Amounts 

16 apportioned to a State under this section shall be ad17 ministered by the State transportation department. 

18 ‘‘(4) FEDERAL SHARE.—Except as provided in 

19 sections 120 and 130, the Federal share of the cost of 

20 a project or activity funded under this section shall 

21 be 90 percent. 

22 ‘‘(5) PERIOD OF AVAILABILITY.—Notwith23 standing section 118(b)(2), amounts apportioned 

24 under this section shall remain available until ex25 pended.’’. 
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1 (b) CONFORMING AMENDMENTS.—The analysis for 

2 subchapter I of chapter 1 of title 23, United States Code 

3 is amended by inserting after the item relating to section 

4 149 the following: 

‘‘150. Safe routes to school program.’’. 

5 SEC. 1406. PURCHASES OF EQUIPMENT. 

6 (a) IN GENERAL.—Section 152 of title 23, United 

7 States Code is amended to read as follows: 

8 ‘‘§ 152. Purchases of equipment 

9 ‘‘(a) IN GENERAL.—Subject to subsection (b), a State 

10 carrying out a project under this chapter shall purchase 

11 device, tool or other equipment needed for the project only 

12 after completing and providing a written analysis dem13 onstrating the cost savings associated with purchasing the 

14 equipment compared with renting the equipment from a 

15 qualified equipment rental provider before the project com16 mences 

17 ‘‘(b) APPLICABILITY.—This section shall apply to— 

18 ‘‘(1) earth moving, road machinery, and mate19 rial handling equipment, or any other item, with a 

20 purchase price in excess of $75,000; and 

21 ‘‘(2) aerial work platforms with a purchase price 

22 in excess of $25,000.’’. 

23 (b) CONFORMING AMENDMENT.—The analysis for sub24 chapter I of chapter 1 of title 23, United States Code, is 
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1 amended by striking the item relating to section 152 and 

2 inserting the following: 

‘‘152. Purchases of equipment.’’. 

3 SEC. 1407. WORKZONE SAFETY. 

4 Section 358(b) of the National Highway System Des5 ignation Act of 1995 (109 Stat. 625) is amended by adding 

6 at the end the following: 

7 ‘‘(7) Recommending all federally-assisted projects 

8 in excess of $15,000,000 to enter into contracts only 

9 with work zone safety services contractors, traffic con10 trol contractors, and trench safety and shoring con11 tractors that carry general liability insurance in an 

12 amount not less than $15,000,000. 

13 ‘‘(8) Recommending federally-assisted projects 

14 the costs of which exceed $15,000,000 to include work 

15 zone intelligent transportation systems that are— 

16 ‘‘(A) provided by a qualified vendor; and 

17 ‘‘(B) monitored continuously. 

18 ‘‘(9) Recommending federally-assisted projects to 

19 fully fund not less than 5 percent of project costs for 

20 work zone safety and temporary traffic control meas21 ures, in addition to the cost of the project, which 

22 measures shall be provided by a qualified work zone 

23 safety or traffic control provider. 

24 ‘‘(10) Ensuring that any recommendation made 

25 under any of paragraphs (7) through (9) provides for 
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1 an exemption for applicability to a State, with re2 spect to a project or class of projects, to the extent 

3 that a State notifies the Secretary in writing that 

4 safety is not expected to be adversely affected by non5 application of the requirement to the project or class 

6 of projects.’’. 

7 SEC. 1408. WORKER INJURY PREVENTION AND FREE FLOW 

8 OF VEHICULAR TRAFFIC. 

9 Not later than 1 year after the date of enactment of 

10 this Act, the Secretary shall promulgate regulations— 

11 (1) to decrease the probability of worker injury; 

12 (2) to maintain the free flow of vehicular traffic 

13 by requiring workers whose duties place the workers 

14 on, or in close proximity to, a Federal-aid highway 

15 (as defined in section 101 of title 23, United States 

16 Code) to wear high-visibility clothing; and 

17 (3) to require such other worker-safety measures 

18 for workers described in paragraph (2) as the Sec19 retary determines appropriate. 

20 SEC. 1409. IDENTITY AUTHENTICATION STANDARDS. 

21 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

22 23, United States Code (as amended by section 1815(a)), 

23 is amended by adding at the end the following: 
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1 ‘‘§ 178. Identity authentication standards 

2 ‘‘(a) DEFINITION OF INFORMATION-BASED IDENTITY

3 AUTHENTICATION.—In this section, the term ‘information4 based identity authentication’ means the determination of 

5 the identity of an individual, through the comparison of 

6 information provided by a person, with other information 

7 pertaining to that individual with a system using scoring 

8 models and algorithms. 

9 ‘‘(b) STANDARDS.—Not later than 180 days after the 

10 date of enactment of this section, the Secretary, in consulta11 tion with the Secretary of Homeland Security and the Fed12 eral Motor Carrier Safety Administration, shall promulgate 

13 regulations establishing minimum standards for State de14 partments of motor vehicles regarding the use of informa15 tion-based identity authentication to determine the identity 

16 of an applicant for a commercial driver’s license, or the 

17 renewal, transfer or upgrading, of a commercial driver’s li18 cense. 

19 ‘‘(c) MINIMUM STANDARDS.—The regulations shall, at 

20 a minimum, require State departments of motor vehicles 

21 to implement, and applicants for commercial driver’s li22 censes, (or the renewal, transfer, or upgrading of commer23 cial driver’s licenses), to comply with, reasonable procedures 

24 for operating an information-based identity authentication 

25 program before issuing, renewing, transferring, or upgrad26 ing a commercial driver’s license. 
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1 ‘‘(d) KEY FACTORS.—In promulgating regulations 

2 under this section, the Secretary shall require that an infor3 mation-based identity authentication program carried out 

4 under this section establish processes that— 

5 ‘‘(1) use multiple sources of matching informa6 tion; 

7 ‘‘(2) enable the measurement of the accuracy of 

8 the determination of an applicant’s identity; 

9 ‘‘(3) support continuous auditing of compliance 

10 with applicable laws, policies, and practices gov11 erning the collection, use, and distribution of infor12 mation in the operation of the program; and 

13 ‘‘(4) incorporate industry best practices to pro14 tect significant privacy interests in the information 

15 used in the program and the appropriate safe16 guarding of the storage of the information.’’. 

17 (b) CONFORMING AMENDMENT.—The analysis for sub18 chapter I of chapter I of title 23, United States Code (as 

19 amended by section 1815(b)), is amended by adding at the 

20 end the following: 

‘‘178. Identity authentication standards.’’. 

21 SEC. 1410. OPEN CONTAINER REQUIREMENTS. 

22 Section 154 of title 23, United States Code, is amended 

23 by striking subsection (c) and inserting the following: 

24 ‘‘(c) TRANSFER OF FUNDS.— 
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1 ‘‘(1) IN GENERAL.—The Secretary shall withhold 

2 the applicable percentage for the fiscal year of the 

3 amount required to be apportioned for Federal-aid 

4 highways to any State under each of paragraphs (1), 

5 (3), and (4) of section 104(b), if a State has not en6 acted or is not enforcing a provision described in sub7 section (b), as follows: 

‘‘For: The applicable percentage is: 

Fiscal year 2008 ............................... 2 percent. 

Fiscal year 2009 ............................... 2 percent. 

Fiscal year 2010 ............................... 2 percent. 

Fiscal year 2011 and each subsequent fiscal year.2 percent. 

8 ‘‘(2) RESTORATION.—If (during the 4-year pe9 riod beginning on the date the apportionment for any 

10 State is reduced in accordance with this subsection) 

11 the Secretary determines that the State has enacted 

12 and is enforcing a provision described in subsection 

13 (b), the apportionment of the State shall be increased 

14 by an amount equal to the amount of the reduction 

15 made during the 4-year period.’’. 
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1 Subtitle E—Environmental 

2 Planning and Review 

3 CHAPTER 1—TRANSPORTATION 

4 PLANNING 

5 SEC. 1501. INTEGRATION OF NATURAL RESOURCE CON6 CERNS INTO STATE AND METROPOLITAN 

7 TRANSPORTATION PLANNING. 

8 (a) METROPOLITAN PLANNING.—Section 134(f) of title 

9 23, United States Code, is amended— 

10 (1) in paragraph (1)— 

11 (A) in subparagraph (D)— 

12 (i) by inserting after ‘‘environment’’ 

13 the following: ‘‘(including the protection of 

14 habitat, water quality, and agricultural 

15 and forest land, while minimizing invasive 

16 species)’’; and 

17 (ii) by inserting before the semicolon 

18 the following: ‘‘(including minimizing ad19 verse health effects from mobile source air 

20 pollution and promoting the linkage of the 

21 transportation and development goals of the 

22 metropolitan area)’’; and 

23 (B) in subparagraph (G), by inserting ‘‘and 

24 efficient use’’ after ‘‘preservation’’; 
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1 (2) by redesignating paragraph (2) as para2 graph (3); and 

3 (3) by inserting after paragraph (1) the fol4 lowing: 

5 ‘‘(2) SELECTION OF FACTORS.—After soliciting 

6 and considering any relevant public comments, the 

7 metropolitan planning organization shall determine 

8 which of the factors described in paragraph (1) are 

9 most appropriate for the metropolitan area to con10 sider.’’. 

11 (b) STATEWIDE PLANNING.—Section 135(c) of title 23, 

12 United States Code, is amended— 

13 (1) in paragraph (1)— 

14 (A) in subparagraph (D)— 

15 (i) by inserting after ‘‘environment’’ 

16 the following: ‘‘(including the protection of 

17 habitat, water quality, and agricultural 

18 and forest land, while minimizing invasive 

19 species)’’; and 

20 (ii) by inserting before the semicolon 

21 the following: ‘‘(including minimizing ad22 verse health effects from mobile source air 

23 pollution and promoting the linkage of the 

24 transportation and development goals of the 

25 State)’’; and 
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1 (B) in subparagraph (G), by inserting ‘‘and 

2 efficient use’’ after ‘‘preservation’’; 

3 (2) by redesignating paragraph (2) as para4 graph (3); and 

5 (3) by inserting after paragraph (1) the fol6 lowing: 

7 ‘‘(2) SELECTION OF PROJECTS AND STRATE8 GIES.—After soliciting and considering any relevant 

9 public comments, the State shall determine which of 

10 the projects and strategies described in paragraph (1) 

11 are most appropriate for the State to consider.’’. 

12 SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION 

13 AGENCIES AND RESOURCE AGENCIES IN 

14 TRANSPORTATION PLANNING. 

15 (a) IN GENERAL.—Section 134(g) of title 23, United 

16 States Code, is amended— 

17 (1) in paragraph (2)— 

18 (A) by redesignating subparagraphs (B) 

19 through (D) as subparagraphs (C) through (E), 

20 respectively; and 

21 (B) by inserting after subparagraph (A) the 

22 following: 

23 ‘‘(B) MITIGATION ACTIVITIES.— 
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1 ‘‘(i) IN GENERAL.—A long-range trans2 portation plan shall include a discussion 

3 of— 

4 ‘‘(I) types of potential habitat, 

5 hydrological, and environmental miti6 gation activities that may assist in 

7 compensating for loss of habitat, wet8 land, and other environmental func9 tions; and 

10 ‘‘(II) potential areas to carry out 

11 these activities, including a discussion 

12 of areas that may have the greatest po13 tential to restore and maintain the 

14 habitat types and hydrological or envi15 ronmental functions affected by the 

16 plan. 

17 ‘‘(ii) CONSULTATION.—The discussion 

18 shall be developed in consultation with Fed19 eral, State, and tribal wildlife, land man20 agement, and regulatory agencies.’’; 

21 (2) by redesignating paragraphs (4), (5), and (6) 

22 as paragraphs (5), (6), and (7), respectively; and 

23 (3) by inserting after paragraph (3) the fol24 lowing: 

25 ‘‘(4) CONSULTATION.— 
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1 ‘‘(A) IN GENERAL.—In each metropolitan 

2 area, the metropolitan planning organization 

3 shall consult, as appropriate, with State and 

4 local agencies responsible for land use manage5 ment, natural resources, environmental protec6 tion, conservation, and historic preservation con7 cerning the development of a long-range trans8 portation plan. 

9 ‘‘(B) ISSUES.—The consultation shall in10 volve— 

11 ‘‘(i) comparison of transportation 

12 plans with State conservation plans or with 

13 maps, if available; 

14 ‘‘(ii) comparison of transportation 

15 plans to inventories of natural or historic 

16 resources, if available; or 

17 ‘‘(iii) consideration of areas where 

18 wildlife crossing structures may be needed 

19 to ensure connectivity between wildlife habi20 tat linkage areas.’’. 

21 (b) IMPROVED CONSULTATION DURING STATE TRANS22 PORTATION PLANNING.— 

23 (1) IN GENERAL.—Section 135(e)(2) of title 23, 

24 United States Code, is amended by adding at the end 

25 the following: 
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1 ‘‘(D) CONSULTATION, COMPARISON, AND

2 CONSIDERATION.— 

3 ‘‘(i) IN GENERAL.—The long-range 

4 transportation plan shall be developed, as 

5 appropriate, in consultation with State and 

6 local agencies responsible for— 

7 ‘‘(I) land use management; 

8 ‘‘(II) natural resources; 

9 ‘‘(III) environmental protection; 

10 ‘‘(IV) conservation; and 

11 ‘‘(V) historic preservation. 

12 ‘‘(ii) COMPARISON AND CONSIDER13 ATION.—Consultation under clause (i) shall 

14 involve— 

15 ‘‘(I) comparison of transportation 

16 plans to State conservation plans or 

17 maps, if available; 

18 ‘‘(II) comparison of transpor19 tation plans to inventories of natural 

20 or historic resources, if available; or 

21 ‘‘(III) consideration of areas 

22 where wildlife crossing structures may 

23 be needed to ensure connectivity be24 tween wildlife habitat linkage areas.’’. 
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1 (2) ADDITIONAL REQUIREMENTS.—Section 

2 135(e) of title 23, United States Code, is amended— 

3 (A) by redesignating paragraphs (4) and 

4 (5) as paragraphs (6) and (7), respectively; and 

5 (B) by inserting after paragraph (3) the fol6 lowing: 

7 ‘‘(4) MITIGATION ACTIVITIES.— 

8 ‘‘(A) IN GENERAL.—A long-range transpor9 tation plan shall include a discussion of— 

10 ‘‘(i) types of potential habitat, 

11 hydrological, and environmental mitigation 

12 activities that may assist in compensating 

13 for loss of habitat, wetlands, and other envi14 ronmental functions; and 

15 ‘‘(ii) potential areas to carry out these 

16 activities, including a discussion of areas 

17 that may have the greatest potential to re18 store and maintain the habitat types and 

19 hydrological or environmental functions af20 fected by the plan. 

21 ‘‘(B) CONSULTATION.—The discussion shall 

22 be developed in consultation with Federal, State, 

23 and tribal wildlife, land management, and regu24 latory agencies. 
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1 ‘‘(5) TRANSPORTATION STRATEGIES.—A long2 range transportation plan shall identify transpor3 tation strategies necessary to efficiently serve the mo4 bility needs of people.’’. 

5 SEC. 1503. INTEGRATION OF NATURAL RESOURCE CON6 CERNS INTO TRANSPORTATION PROJECT 

7 PLANNING. 

8 Section 109(c)(2) of title 23, United States Code, is 

9 amended— 

10 (1) by striking ‘‘consider the results’’ and insert11 ing ‘‘consider— 

12 ‘‘(A) the results’’; 

13 (2) by striking the period at the end and insert14 ing a semicolon; and 

15 (3) by adding at the end the following: 

16 ‘‘(B) the publication entitled ‘Flexibility in 

17 Highway Design’ of the Federal Highway Ad18 ministration; 

19 ‘‘(C) ‘Eight Characteristics of Process to 

20 Yield Excellence and the Seven Qualities of Ex21 cellence in Transportation Design’ developed by 

22 the conference held during 1998 entitled ‘Think23 ing Beyond the Pavement National Workshop on 

24 Integrating Highway Development with Commu-
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1 nities and the Environment while Maintaining 

2 Safety and Performance’; and 

3 ‘‘(D) any other material that the Secretary 

4 determines to be appropriate.’’. 

5 SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION 

6 PLANNING AND PROJECTS. 

7 (a) METROPOLITAN PLANNING.— 

8 (1) PARTICIPATION BY INTERESTED PARTIES.— 

9 Section 134(g)(5) of title 23, United States Code (as 

10 redesignated by section 1502(a)(1)), is amended— 

11 (A) by striking ‘‘Before approving’’ and in12 serting the following: 

13 ‘‘(A) IN GENERAL.—Before approving’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(B) METHODS.—In carrying out subpara16 graph (A), the metropolitan planning organiza17 tion shall, to the maximum extent practicable— 

18 ‘‘(i) hold any public meetings at con19 venient and accessible locations and times; 

20 ‘‘(ii) employ visualization techniques 

21 to describe plans; and 

22 ‘‘(iii) make public information avail23 able in electronically accessible format and 

24 means, such as the World Wide Web.’’. 
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1 (2) PUBLICATION OF LONG-RANGE TRANSPOR2 TATION PLANS.—Section 134(g)(6)(i) of title 23, 

3 United States Code (as redesignated by section 

4 1502(a)(1)), is amended by inserting before the semi5 colon the following: ‘‘, including (to the maximum ex6 tent practicable) in electronically accessible formats 

7 and means such as the World Wide Web’’. 

8 (b) STATEWIDE PLANNING.— 

9 (1) PARTICIPATION BY INTERESTED PARTIES.— 

10 Section 135(e)(3) of title 23, United States Code, is 

11 amended by striking subparagraph (B) and inserting 

12 the following: 

13 ‘‘(B) METHODS.—In carrying out subpara14 graph (A), the State shall, to the maximum ex15 tent practicable— 

16 ‘‘(i) hold any public meetings at con17 venient and accessible locations and times; 

18 ‘‘(ii) employ visualization techniques 

19 to describe plans; and 

20 ‘‘(iii) make public information avail21 able in electronically accessible format and 

22 means, such as the World Wide Web.’’. 

23 (2) PUBLICATION OF LONG-RANGE TRANSPOR24 TATION PLANS.—Section 135(e) of title 23, United 
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1 States Code (as amended by section 1502(b)(2)), is 

2 amended by adding at the end the following: 

3 ‘‘(8) PUBLICATION OF LONG-RANGE TRANSPOR4 TATION PLANS.—Each long-range transportation plan 

5 prepared by a State shall be published or otherwise 

6 made available, including (to the maximum extent 

7 practicable) in electronically accessible formats and 

8 means, such as the World Wide Web.’’. 

9 SEC. 1505. PROJECT MITIGATION. 

10 (a) MITIGATION FOR NATIONAL HIGHWAY SYSTEM

11 PROJECTS.—Section 103(b)(6)(M) of title 23, United States 

12 Code, is amended— 

13 (1) by inserting ‘‘(i)’’ after ‘‘(M); and 

14 (2) by adding at the end the following: 

15 ‘‘(ii) State habitat, streams, and wetlands 

16 mitigation efforts under section 155.’’. 

17 (b) MITIGATION FOR SURFACE TRANSPORTATION PRO18 GRAM PROJECTS.—Section 133(b)(11) of title 23, United 

19 States Code, is amended— 

20 (1) by inserting ‘‘(A)’’ after ‘‘(11)’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(B) State habitat, streams, and wetlands miti23 gation efforts under section 155.’’. 
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1 (c) STATE HABITAT, STREAMS, AND WETLANDS MITI2 GATION FUNDS.—Section 155 of title 23, United States 

3 Code, is amended to read as follows: 

4 ‘‘§ 155. State habitat, streams, and wetlands mitiga5 tion funds 

6 ‘‘(a) ESTABLISHMENT.—A State should establish a 

7 habitat, streams, and wetlands mitigation fund (referred to 

8 in this section as a ‘State fund’). 

9 ‘‘(b) PURPOSE.—The purpose of a State fund is to en10 courage efforts for habitat, streams, and wetlands mitiga11 tion in advance of or in conjunction with highway or tran12 sit projects to— 

13 ‘‘(1) ensure that the best habitat, streams, and 

14 wetland mitigation sites now available are used; and 

15 ‘‘(2) accelerate transportation project delivery by 

16 making high-quality habitat, streams, and wetland 

17 mitigation credits available when needed. 

18 ‘‘(c) FUNDS.—A State may deposit into a State fund 

19 part of the funds apportioned to the State under— 

20 ‘‘(1) section 104(b)(1) for the National Highway 

21 System; and 

22 ‘‘(2) section 104(b)(3) for the surface transpor23 tation program. 

24 ‘‘(d) USE.— 
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1 ‘‘(1) IN GENERAL.—Amounts deposited in a 

2 State fund shall be used (in a manner consistent with 

3 this section) for habitat, streams, or wetlands mitiga4 tion related to 1 or more projects funded under this 

5 title, including a project under the transportation im6 provement program of the State developed under sec7 tion 135(f). 

8 ‘‘(2) ENDANGERED SPECIES.—In carrying out 

9 this section, a State and cooperating agency shall give 

10 consideration to mitigation projects, on-site or off-site, 

11 that restore and preserve the best available sites to 

12 conserve biodiversity and habitat for— 

13 ‘‘(A) Federal or State listed threatened or 

14 endangered species of plants and animals; and 

15 ‘‘(B) plant or animal species warranting 

16 listing as threatened or endangered, as deter17 mined by the Secretary of the Interior in accord18 ance with section 4(b)(3)(B) of the Endangered 

19 Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)). 

20 ‘‘(3) MITIGATION IN CLOSED BASINS.— 

21 ‘‘(A) IN GENERAL.—A State may use 

22 amounts deposited in the State fund for projects 

23 to protect existing roadways from anticipated 

24 flooding of a closed basin lake, including— 

25 ‘‘(i) construction— 
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1 ‘‘(I) necessary for the continu2 ation of roadway services and the im3 poundment of water, as the State de4 termines to be appropriate; or 

5 ‘‘(II) for a grade raise to perma6 nently restore a roadway the use of 

7 which is lost or reduced, or could be 

8 lost or reduced, as a result of an actual 

9 or predicted water level that is within 

10 3 feet of causing inundation of the 

11 roadway in a closed lake basin; 

12 ‘‘(ii) monitoring, studies, evaluations, 

13 design, or preliminary engineering relating 

14 to construction; and 

15 ‘‘(iii) monitoring and evaluations re16 lating to proposed construction. 

17 ‘‘(B) REIMBURSEMENT.—The Secretary 

18 may permit a State that expends funds under 

19 subparagraph (A) to be reimbursed for the ex20 penditures through the use of amounts made 

21 available under section 125(c)(1). 

22 ‘‘(e) CONSISTENCY WITH APPLICABLE REQUIRE23 MENTS.—Contributions from the State fund to mitigation 

24 efforts may occur in advance of project construction only 
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1 if the efforts are consistent with all applicable requirements 

2 of Federal law (including regulations).’’. 

3 (d) CONFORMING AMENDMENT.—The analysis for sub4 chapter I of chapter 1 of title 23, United States Code, is 

5 amended by striking the item relating to section 155 and 

6 inserting the following: 

‘‘155. State habitat, streams, and wetlands mitigation funds.’’. 

7 CHAPTER 2—TRANSPORTATION PROJECT 

8 DEVELOPMENT PROCESS 

9 SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT 

10 PROCESS. 

11 (a) IN GENERAL.—Chapter 3 of title 23, United States 

12 Code (as amended by section 1203(a)), is amended by in13 serting after section 325 the following: 

14 ‘‘§ 326. Transportation project development process 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) AGENCY.—The term ‘agency’ means any 

17 agency, department, or other unit of Federal, State, 

18 local, or federally recognized tribal government. 

19 ‘‘(2) ENVIRONMENTAL IMPACT STATEMENT.—The 

20 term ‘environmental impact statement’ means a de21 tailed statement of the environmental impacts of a 

22 project required to be prepared under the National 

23 Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

24 seq.). 

25 ‘‘(3) ENVIRONMENTAL REVIEW PROCESS.— 
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1 ‘‘(A) IN GENERAL.—The term ‘environ2 mental review process’ means the process for pre3 paring, for a project— 

4 ‘‘(i) an environmental impact state5 ment; or 

6 ‘‘(ii) any other document or analysis 

7 required to be prepared under the National 

8 Environmental Policy Act of 1969 (42 

9 U.S.C. 4321 et seq.) 

10 ‘‘(B) INCLUSIONS.—The term ‘environ11 mental review process’ includes the process for 

12 and completion of any environmental permit, 

13 approval, review, or study required for a project 

14 under any Federal law other than the National 

15 Environmental Policy Act of 1969 (42 U.S.C. 

16 4321 et seq.). 

17 ‘‘(4) PROJECT.—The term ‘project’ means any 

18 highway or transit project that requires the approval 

19 of the Secretary. 

20 ‘‘(5) PROJECT SPONSOR.—The term ‘project 

21 sponsor’ means an agency or other entity (including 

22 any private or public-private entity), that seeks ap23 proval of the Secretary for a project. 

24 ‘‘(6) STATE TRANSPORTATION DEPARTMENT.— 

25 The term ‘State transportation department’ means 
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1 any statewide agency of a State with responsibility 

2 for transportation. 

3 ‘‘(b) PROCESS.— 

4 ‘‘(1) LEAD AGENCY.— 

5 ‘‘(A) IN GENERAL.—The Department of 

6 Transportation shall be the lead Federal agency 

7 in the environmental review process for a project. 

8 ‘‘(B) JOINT LEAD AGENCIES.—Nothing in 

9 this section precludes another agency from being 

10 a joint lead agency in accordance with regula11 tions under the National Environmental Policy 

12 Act of 1969 (42 U.S.C. 4321 et seq.). 

13 ‘‘(C) CONCURRENCE OF PROJECT SPON14 SOR.—The lead agency may carry out the envi15 ronmental review process in accordance with this 

16 section only with the concurrence of the project 

17 sponsor. 

18 ‘‘(2) REQUEST FOR PROCESS.— 

19 ‘‘(A) IN GENERAL.—A project sponsor may 

20 request that the lead agency carry out the envi21 ronmental review process for a project or group 

22 of projects in accordance with this section. 

23 ‘‘(B) GRANT OF REQUEST; PUBLIC NO24 TICE.—The lead agency shall— 
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1 ‘‘(i) grant a request under subpara2 graph (A); and 

3 ‘‘(ii) provide public notice of the re4 quest. 

5 ‘‘(3) EFFECTIVE DATE.—The environmental re6 view process described in this section may be applied 

7 to a project only after the date on which public notice 

8 is provided under subparagraph (B)(ii). 

9 ‘‘(c) ROLES AND RESPONSIBILITY OF LEAD AGENCY.— 

10 With respect to the environmental review process for any 

11 project, the lead agency shall have authority and responsi12 bility to— 

13 ‘‘(A) identify and invite cooperating agen14 cies in accordance with subsection (d); 

15 ‘‘(B) develop an agency coordination plan 

16 with review, schedule, and timelines in accord17 ance with subsection (e); 

18 ‘‘(C) determine the purpose and need for the 

19 project in accordance with subsection (f); 

20 ‘‘(D) determine the range of alternatives to 

21 be considered in accordance with subsection (g); 

22 ‘‘(E) convene dispute-avoidance and deci23 sion resolution meetings and related efforts in 

24 accordance with subsection (h); 
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1 ‘‘(F) take such other actions as are nec2 essary and proper, within the authority of the 

3 lead agency, to facilitate the expeditious resolu4 tion of the environmental review process for the 

5 project; and 

6 ‘‘(G) prepare or ensure that any required 

7 environmental impact statement or other docu8 ment required to be completed under the Na9 tional Environmental Policy Act of 1969 (42 

10 U.S.C. 4321 et seq.) is completed in accordance 

11 with this section and applicable Federal law. 

12 ‘‘(d) ROLES AND RESPONSIBILITIES OF COOPERATING

13 AGENCIES.— 

14 ‘‘(1) IN GENERAL.—With respect to a project, 

15 each Federal agency shall carry out any obligations 

16 of the Federal agency in the environmental review 

17 process in accordance with this section and applicable 

18 Federal law. 

19 ‘‘(2) INVITATION.— 

20 ‘‘(A) IN GENERAL.—The lead agency 

21 shall— 

22 ‘‘(i) identify, as early as practicable in 

23 the environmental review process for a 

24 project, any other agencies that may have 

25 an interest in the project, including— 
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1 ‘‘(I) agencies with jurisdiction 

2 over environmentally-related matters 

3 that may affect the project or may be 

4 required by law to conduct an environ5 mental-related independent review or 

6 analysis of the project or determine 

7 whether to issue an environmental-re8 lated permit, license, or approval for 

9 the project; and 

10 ‘‘(II) agencies with special exper11 tise relevant to the project; 

12 ‘‘(ii) invite the agencies identified in 

13 clause (i) to become participating agencies 

14 in the environmental review process for that 

15 project; and 

16 ‘‘(iii) grant requests to become cooper17 ating agencies from agencies not originally 

18 invited. 

19 ‘‘(B) RESPONSES.—The deadline for receipt 

20 of a response from an agency that receives an in21 vitation under subparagraph (A)(ii)— 

22 ‘‘(i) shall be 30 days after the date of 

23 receipt by the agency of the invitation; but 

24 ‘‘(ii) may be extended by the lead agen25 cy for good cause. 
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1 ‘‘(3) DECLINING OF INVITATIONS.—A Federal 

2 agency that is invited by the lead agency to partici3 pate in the environmental review process for a project 

4 shall be designated as a cooperating agency by the 

5 lead agency, unless the invited agency informs the 

6 lead agency in writing, by the deadline specified in 

7 the invitation, that the invited agency— 

8 ‘‘(A) has no jurisdiction or authority with 

9 respect to the project; 

10 ‘‘(B) has no expertise or information rel11 evant to the project; and 

12 ‘‘(C) does not intend to submit comments on 

13 the project. 

14 ‘‘(4) EFFECT OF DESIGNATION.—Designation as 

15 a cooperating agency under this subsection shall not 

16 imply that the cooperating agency— 

17 ‘‘(A) supports a proposed project; or 

18 ‘‘(B) has any jurisdiction over, or special 

19 expertise with respect to evaluation of, the 

20 project. 

21 ‘‘(5) DESIGNATIONS FOR CATEGORIES OF

22 PROJECTS.— 

23 ‘‘(A) IN GENERAL.—The Secretary may in24 vite other agencies to become cooperating agen25 cies for a category of projects. 
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1 ‘‘(B) DESIGNATION.—An agency may be 

2 designated as a cooperating agency for a cat3 egory of projects only with the consent of the 

4 agency. 

5 ‘‘(6) CONCURRENT REVIEWS.—Each Federal 

6 agency shall, to the maximum extent practicable— 

7 ‘‘(A) carry out obligations of the Federal 

8 agency under other applicable law concurrently, 

9 and in conjunction, with the review required 

10 under the National Environmental Policy Act of 

11 1969 (42 U.S.C. 4321 et seq.), unless doing so 

12 would impair the ability of the Federal agency 

13 to carry out those obligations; and 

14 ‘‘(B) formulate and implement administra15 tive, policy, and procedural mechanisms to en16 able the agency to ensure completion of the envi17 ronmental review process in a timely, coordi18 nated, and environmentally responsible manner. 

19 ‘‘(e) DEVELOPMENT OF FLEXIBLE PROCESS AND

20 TIMELINE.— 

21 ‘‘(1) COORDINATION PLAN.— 

22 ‘‘(A) IN GENERAL.—The lead agency shall 

23 establish a coordination plan, which may be in24 corporated into a memorandum of under25 standing, to coordinate agency and public par-
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1 ticipation in and comment on the environmental 

2 review process for a project or category of 

3 projects. 

4 ‘‘(B) WORKPLAN.— 

5 ‘‘(i) IN GENERAL.—The lead agency 

6 shall develop, as part of the coordination 

7 plan, a workplan for completing the collec8 tion, analysis, and evaluation of baseline 

9 data and future impacts modeling necessary 

10 to complete the environmental review proc11 ess, including any data, analyses, and mod12 eling necessary for related permits, approv13 als, reviews, or studies required for the 

14 project under other laws. 

15 ‘‘(ii) CONSULTATION.—In developing 

16 the workplan under clause (i), the lead 

17 agency shall consult with— 

18 ‘‘(I) each cooperating agency for 

19 the project; 

20 ‘‘(II) the State in which the 

21 project is located; and 

22 ‘‘(III) if the State is not the 

23 project sponsor, the project sponsor. 

24 ‘‘(C) SCHEDULE.— 
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1 ‘‘(i) IN GENERAL.—The lead agency 

2 shall establish as part of the coordination 

3 plan, after consultation with each cooper4 ating agency for the project and with the 

5 State in which the project is located (and, 

6 if the State is not the project sponsor, with 

7 the project sponsor), a schedule for comple8 tion of the environmental review process for 

9 the project. 

10 ‘‘(ii) FACTORS FOR CONSIDERATION.— 

11 In establishing the schedule, the lead agency 

12 shall consider factors such as— 

13 ‘‘(I) the responsibilities of cooper14 ating agencies under applicable laws; 

15 ‘‘(II) resources available to the co16 operating agencies; 

17 ‘‘(III) overall size and complexity 

18 of a project; 

19 ‘‘(IV) the overall schedule for and 

20 cost of a project; and 

21 ‘‘(V) the sensitivity of the natural 

22 and historic resources that could be af23 fected by the project. 

24 ‘‘(D) CONSISTENCY WITH OTHER TIME PE25 RIODS.—A schedule under subparagraph (C) 
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1 shall be consistent with any other relevant time 

2 periods established under Federal law. 

3 ‘‘(E) MODIFICATION.—The lead agency 

4 may— 

5 ‘‘(i) lengthen a schedule established 

6 under subparagraph (C) for good cause; and 

7 ‘‘(ii) shorten a schedule only with the 

8 concurrence of the affected cooperating agen9 cies. 

10 ‘‘(F) DISSEMINATION.—A copy of a schedule 

11 under subparagraph (C), and of any modifica12 tions to the schedule, shall be— 

13 ‘‘(i) provided to all cooperating agen14 cies and to the State transportation depart15 ment of the State in which the project is lo16 cated (and, if the State is not the project 

17 sponsor, to the project sponsor); and 

18 ‘‘(ii) made available to the public. 

19 ‘‘(2) COMMENTS AND TIMELINES.— 

20 ‘‘(A) IN GENERAL.—A schedule established 

21 under paragraph (1)(C) shall include— 

22 ‘‘(i) opportunities for comment, dead23 line for receipt of any comments submitted, 

24 deadline for lead agency response to com25 ments; and 
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1 ‘‘(ii) except as otherwise provided 

2 under paragraph (1)— 

3 ‘‘(I) an opportunity to comment 

4 by agencies and the public on a draft 

5 or final environmental impact state6 ment for a period of not more than 60 

7 days longer than the minimum period 

8 required under the National Environ9 mental Policy Act of 1969 (42 U.S.C. 

10 4321 et seq.); and 

11 ‘‘(II) for all other comment peri12 ods established by the lead agency for 

13 agency or public comments in the envi14 ronmental review process, a period of 

15 not more than the longer of— 

16 ‘‘(aa) 30 days after the final 

17 day of the minimum period re18 quired under Federal law (includ19 ing regulations), if available; or 

20 ‘‘(bb) if a minimum period 

21 is not required under Federal law 

22 (including regulations), 30 days. 

23 ‘‘(B) EXTENSION OF COMMENT PERIODS.— 

24 The lead agency may extend a period of com-
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1 ment established under this paragraph for good 

2 cause. 

3 ‘‘(C) LATE COMMENTS.—A comment con4 cerning a project submitted under this para5 graph after the date of termination of the appli6 cable comment period or extension of a comment 

7 period shall not be eligible for consideration by 

8 the lead agency unless the lead agency or project 

9 sponsor determines there was good cause for the 

10 delay or the lead agency is required to consider 

11 significant new circumstances or information in 

12 accordance with sections 1501.7 and 1502.9 of 

13 title 40, Code of Federal Regulations. 

14 ‘‘(D) DEADLINES FOR DECISIONS UNDER

15 OTHER LAWS.—In any case in which a decision 

16 under any Federal law relating to a project (in17 cluding the issuance or denial of a permit or li18 cense) is required to be made by the later of the 

19 date that is 180 days after the date on which the 

20 Secretary made all final decisions of the lead 

21 agency with respect to the project, or 180 days 

22 after the date on which an application was sub23 mitted for the permit or license, the Secretary 

24 shall submit to the Committee on Environment 

25 and Public Works of the Senate and the Com-
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1 mittee on Transportation and Infrastructure of 

2 the House of Representatives— 

3 ‘‘(i) as soon as practicable after the 

4 180-day period, an initial notice of the fail5 ure of the Federal agency to make the deci6 sion; and 

7 ‘‘(ii) every 60 day thereafter until such 

8 date as all decisions of the Federal agency 

9 relating to the project have been made by 

10 the Federal agency, an additional notice 

11 that describes the number of decisions of the 

12 Federal agency that remain outstanding as 

13 of the date of the additional notice. 

14 ‘‘(3) INVOLVEMENT OF THE PUBLIC.—Nothing in 

15 this subsection shall reduce any time period provided 

16 for public comment in the environmental review proc17 ess under existing Federal law (including a regula18 tion). 

19 ‘‘(f) DEVELOPMENT OF PROJECT PURPOSE AND NEED

20 STATEMENT.— 

21 ‘‘(1) IN GENERAL.—With respect to the environ22 mental review process for a project, the purpose and 

23 need for the project shall be defined in accordance 

24 with this subsection. 
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1 ‘‘(2) AUTHORITY.—The lead agency shall define 

2 the purpose and need for a project, including the 

3 transportation objectives and any other objectives in4 tended to be achieved by the project. 

5 ‘‘(3) INVOLVEMENT OF COOPERATING AGENCIES

6 AND THE PUBLIC.—Before determining the purpose 

7 and need for a project, the lead agency shall solicit 

8 for 30 days, and consider, any relevant comments on 

9 the draft statement of purpose and need for a pro10 posed project received from the public and cooperating 

11 agencies. 

12 ‘‘(4) EFFECT ON OTHER REVIEWS.—For the pur13 pose of compliance with the National Environmental 

14 Policy Act of 1969 (42 U.S.C. 4321 et seq.) and any 

15 other law requiring an agency that is not the lead 

16 agency to determine or consider a project purpose or 

17 project need, such an agency acting, permitting, or 

18 approving under, or otherwise applying, Federal law 

19 with respect to a project shall adopt the determina20 tion of purpose and need for the project made by the 

21 lead agency. 

22 ‘‘(5) SAVINGS.—Nothing in this subsection pre23 empts or interferes with any power, jurisdiction, re24 sponsibility, or authority of an agency under applica-
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1 ble law (including regulations) with respect to a 

2 project. 

3 ‘‘(6) CONTENTS.— 

4 ‘‘(A) IN GENERAL.—The statement of pur5 pose and need shall include a clear statement of 

6 the objectives that the proposed project is in7 tended to achieve. 

8 ‘‘(B) EFFECT ON EXISTING STANDARDS.— 

9 Nothing in this subsection shall alter existing 

10 standards for defining the purpose and need of 

11 a project. 

12 ‘‘(7) FACTORS TO CONSIDER.—The lead agency 

13 may determine that any of the following factors and 

14 documents are appropriate for consideration in deter15 mining the purpose of and need for a project: 

16 ‘‘(A) Transportation plans and related 

17 planning documents developed through the state18 wide and metropolitan transportation planning 

19 process under sections 134 and 135. 

20 ‘‘(B) Land use plans adopted by units of 

21 State, local, or tribal government (or, in the case 

22 of Federal land, by the applicable Federal land 

23 management agencies). 

24 ‘‘(C) Economic development plans adopted 

25 by— 
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1 ‘‘(i) units of State, local, or tribal gov2 ernment; or 

3 ‘‘(ii) established economic development 

4 planning organizations or authorities. 

5 ‘‘(D) Environmental protection plans, in6 cluding plans for the protection or treatment 

7 of— 

8 ‘‘(i) air quality; 

9 ‘‘(ii) water quality and runoff; 

10 ‘‘(iii) habitat needs of plants and ani11 mals; 

12 ‘‘(iv) threatened and endangered spe13 cies; 

14 ‘‘(v) invasive species; 

15 ‘‘(vi) historic properties; and 

16 ‘‘(vii) other environmental resources. 

17 ‘‘(E) Any publicly available plans or poli18 cies relating to the national defense, national se19 curity, or foreign policy of the United States. 

20 ‘‘(g) DEVELOPMENT OF PROJECT ALTERNATIVES.— 

21 ‘‘(1) IN GENERAL.—With respect to the environ22 mental review process for a project, the alternatives 

23 shall be determined in accordance with this sub24 section. 
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1 ‘‘(2) AUTHORITY.—The lead agency shall deter2 mine the alternatives to be considered for a project. 

3 ‘‘(3) INVOLVEMENT OF COOPERATING AGENCIES

4 AND THE PUBLIC.— 

5 ‘‘(A) IN GENERAL.—Before determining the 

6 alternatives for a project, the lead agency shall 

7 solicit for 30 days and consider any relevant 

8 comments on the proposed alternatives received 

9 from the public and cooperating agencies. 

10 ‘‘(B) ALTERNATIVES.—The lead agency 

11 shall consider— 

12 ‘‘(i) alternatives that meet the purpose 

13 and need of the project; and 

14 ‘‘(ii) the alternative of no action. 

15 ‘‘(C) EFFECT ON EXISTING STANDARDS.— 

16 Nothing in this subsection shall alter the existing 

17 standards for determining the range of alter18 natives. 

19 ‘‘(4) EFFECT ON OTHER REVIEWS.—Any other 

20 agency acting under or applying Federal law with re21 spect to a project shall consider only the alternatives 

22 determined by the lead agency. 

23 ‘‘(5) SAVINGS.—Nothing in this subsection pre24 empts or interferes with any power, jurisdiction, re25 sponsibility, or authority of an agency under applica-
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1 ble law (including regulations) with respect to a 

2 project. 

3 ‘‘(6) FACTORS TO CONSIDER.—The lead agency 

4 may determine that any of the following factors and 

5 documents are appropriate for consideration in deter6 mining the alternatives for a project: 

7 ‘‘(A) The overall size and complexity of the 

8 proposed action. 

9 ‘‘(B) The sensitivity of the potentially af10 fected resources. 

11 ‘‘(C) The overall schedule and cost of the 

12 project. 

13 ‘‘(D) Transportation plans and related 

14 planning documents developed through the state15 wide and metropolitan transportation planning 

16 process under sections 134 and 135 of title 23 of 

17 the United States Code. 

18 ‘‘(E) Land use plans adopted by units of 

19 State, local, or tribal government (or, in the case 

20 of Federal land, by the applicable Federal land 

21 management agencies). 

22 ‘‘(F) Economic development plans adopted 

23 by— 

24 ‘‘(i) units of State, local, or tribal gov25 ernment; or 
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1 ‘‘(ii) established economic development 

2 planning organizations or authorities. 

3 ‘‘(G) environmental protection plans, in4 cluding plans for the protection or treatment 

5 of— 

6 ‘‘(i) air quality; 

7 ‘‘(ii) water quality and runoff; 

8 ‘‘(iii) habitat needs of plants and ani9 mals; 

10 ‘‘(iv) threatened and endangered spe11 cies; 

12 ‘‘(v) invasive species; 

13 ‘‘(vi) historic properties; and 

14 ‘‘(vii) other environmental resources. 

15 ‘‘(H) Any publicly available plans or poli16 cies relating to the national defense, national se17 curity, or foreign policy of the United States. 

18 ‘‘(h) PROMPT ISSUE IDENTIFICATION AND RESOLU19 TION PROCESS.— 

20 ‘‘(1) IN GENERAL.—The lead agency, the project 

21 sponsor, and the cooperating agencies shall work co22 operatively, in accordance with this section, to iden23 tify and resolve issues that could— 

24 ‘‘(A) delay completion of the environmental 

25 review process; or 
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1 ‘‘(B) result in denial of any approvals re2 quired for the project under applicable laws. 

3 ‘‘(2) LEAD AGENCY RESPONSIBILITIES.— 

4 ‘‘(A) IN GENERAL.—The lead agency, with 

5 the assistance of the project sponsor, shall make 

6 information available to the cooperating agen7 cies, as early as practicable in the environmental 

8 review process, regarding— 

9 ‘‘(i) the environmental and socio10 economic resources located within the 

11 project area; and 

12 ‘‘(ii) the general locations of the alter13 natives under consideration. 

14 ‘‘(B) BASIS FOR INFORMATION.—Informa15 tion about resources in the project area may be 

16 based on existing data sources, including geo17 graphic information systems mapping. 

18 ‘‘(3) COOPERATING AGENCY RESPONSIBIL19 ITIES.— 

20 ‘‘(A) IN GENERAL.—Based on information 

21 received from the lead agency, cooperating agen22 cies shall promptly identify to the lead agency 

23 any major issues of concern regarding the poten24 tial environmental or socioeconomic impacts of a 

25 project. 
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1 ‘‘(B) MAJOR ISSUES OF CONCERN.—A 

2 major issue of concern referred to in subpara3 graph (A) may include any issue that could sub4 stantially delay or prevent an agency from 

5 granting a permit or other approval that is 

6 needed for a project, as determined by a cooper7 ating agency. 

8 ‘‘(4) ISSUE RESOLUTION.—On identification of a 

9 major issue of concern under paragraph (3), or at 

10 any time upon the request of a project sponsor or the 

11 Governor of a State, the lead agency shall promptly 

12 convene a meeting with representatives of each of the 

13 relevant cooperating agencies, the project sponsor, and 

14 the Governor to address and resolve the issue. 

15 ‘‘(5) NOTIFICATION.—If a resolution of a major 

16 issue of concern under paragraph (4) cannot be 

17 achieved by the date that is 30 days after the date on 

18 which a meeting under that paragraph is convened, 

19 the lead agency shall provide notification of the fail20 ure to resolve the major issue of concern to— 

21 ‘‘(A) the heads of all cooperating agencies; 

22 ‘‘(B) the project sponsor; 

23 ‘‘(C) the Governor involved; 

24 ‘‘(D) the Committee on Environment and 

25 Public Works of the Senate; and 
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1 ‘‘(E) the Committee on Transportation and 

2 Infrastructure of the House of Representatives. 

3 ‘‘(i) PERFORMANCE MEASUREMENT.— 

4 ‘‘(1) PROGRESS REPORTS.—The Secretary shall 

5 establish a program to measure and report on 

6 progress toward improving and expediting the plan7 ning and environmental review process. 

8 ‘‘(2) MINIMUM REQUIREMENTS.—The program 

9 shall include, at a minimum— 

10 ‘‘(A) the establishment of criteria for meas11 uring consideration of— 

12 ‘‘(i) State and metropolitan planning, 

13 project planning, and design criteria; and 

14 ‘‘(ii) environmental processing times 

15 and costs; 

16 ‘‘(B) the collection of data to assess perform17 ance based on the established criteria; and 

18 ‘‘(C) the annual reporting of the results of 

19 the performance measurement studies. 

20 ‘‘(3) INVOLVEMENT OF THE PUBLIC AND COOPER21 ATING AGENCIES.— 

22 ‘‘(A) IN GENERAL.—The Secretary shall bi23 ennially conduct a survey of agencies partici24 pating in the environmental review process 

25 under this section to assess the expectations and 
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1 experiences of each surveyed agency with regard 

2 to the planning and environmental review proc3 ess for projects reviewed under this section. 

4 ‘‘(B) PUBLIC PARTICIPATION.—In con5 ducting the survey, the Secretary shall solicit 

6 comments from the public. 

7 ‘‘(j) ASSISTANCE TO AFFECTED FEDERAL AND STATE

8 AGENCIES.— 

9 ‘‘(1) IN GENERAL.—The Secretary may approve 

10 a request by a State or recipient to provide funds 

11 made available under this title for a highway project, 

12 or made available under chapter 53 of title 49 for a 

13 mass transit project, to agencies participating in the 

14 coordinated environmental review process established 

15 under this section in order to provide the resources 

16 necessary to meet any time limits established under 

17 this section. 

18 ‘‘(2) AMOUNTS.—Such requests under paragraph 

19 (1) shall be approved only— 

20 ‘‘(A) for such additional amounts as the 

21 Secretary determines are necessary for the af22 fected Federal and State agencies to meet the 

23 time limits for environmental review; and 

24 ‘‘(B) if those time limits are less than the 

25 customary time necessary for that review. 
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1 ‘‘(k) JUDICIAL REVIEW AND SAVINGS CLAUSE.— 

2 ‘‘(1) JUDICIAL REVIEW.—Nothing in this section 

3 shall affect the reviewability of any final Federal 

4 agency action in any United States district court or 

5 State court. 

6 ‘‘(2) SAVINGS CLAUSE.—Nothing in this section 

7 shall affect— 

8 ‘‘(A) the applicability of the National Envi9 ronmental Policy Act of 1969 (42 U.S.C. 4321 et 

10 seq.) or any other Federal environmental statute; 

11 or 

12 ‘‘(B) the responsibility of any Federal offi13 cer to comply with or enforce such a statute.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) The analysis for chapter 3 of title 23, United 

16 States Code, is amended by inserting after the item 

17 relating to section 325 (as added by section 1203(f)) 

18 the following: 

‘‘326. Transportation project development process.’’. 

19 (2) Section 1309 of the Transportation Equity 

20 Act for the 21st Century (112 Stat. 232) is repealed. 

21 SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CAT22 EGORICAL EXCLUSIONS. 

23 (a) IN GENERAL.—Chapter 3 of title 23, United States 

24 Code (as amended by section 1511(a)), is amended by in25 serting after section 326 the following: 
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1 ‘‘§ 327. Assumption of responsibility for categorical ex2 clusions 

3 ‘‘(a) CATEGORICAL EXCLUSION DETERMINATIONS.— 

4 ‘‘(1) IN GENERAL.—The Secretary may assign, 

5 and a State may assume, responsibility for deter6 mining whether certain designated activities are in7 cluded within classes of action identified in regula8 tion by the Secretary that are categorically excluded 

9 from requirements for environmental assessments or 

10 environmental impact statements pursuant to regula11 tions promulgated by the Council on Environmental 

12 Quality under part 1500 of title 40, Code of Federal 

13 Regulations (as in effect on October 1, 2003). 

14 ‘‘(2) SCOPE OF AUTHORITY.—A determination 

15 described in paragraph (1) shall be made by a State 

16 in accordance with criteria established by the Sec17 retary and only for types of activities specifically des18 ignated by the Secretary. 

19 ‘‘(3) CRITERIA.—The criteria under paragraph 

20 (2) shall include provisions for public availability of 

21 information consistent with section 552 of title 5 and 

22 the National Environmental Policy Act of 1969 (42 

23 U.S.C. 4321 et seq.). 

24 ‘‘(b) OTHER APPLICABLE FEDERAL LAWS.— 

25 ‘‘(1) IN GENERAL.—If a State assumes responsi26 bility under subsection (a), the Secretary may also 
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1 assign and the State may assume all or part of the 

2 responsibilities of the Secretary for environmental re3 view, consultation, or other related actions required 

4 under any Federal law applicable to activities that 

5 are classified by the Secretary as categorical exclu6 sions, with the exception of government-to-government 

7 consultation with Indian tribes, subject to the same 

8 procedural and substantive requirements as would be 

9 required if that responsibility were carried out by the 

10 Secretary. 

11 ‘‘(2) SOLE RESPONSIBILITY.—A State that as12 sumes responsibility under paragraph (1) with re13 spect to a Federal law shall be solely responsible and 

14 solely liable for complying with and carrying out that 

15 law, and the Secretary shall have no such responsi16 bility or liability. 

17 ‘‘(c) MEMORANDA OF UNDERSTANDING.— 

18 ‘‘(1) IN GENERAL.—The Secretary and the State, 

19 after providing public notice and opportunity for 

20 comment, shall enter into a memorandum of under21 standing setting forth the responsibilities to be as22 signed under this section and the terms and condi23 tions under which the assignments are made, includ24 ing establishment of the circumstances under which 
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1 the Secretary would reassume responsibility for cat2 egorical exclusion determinations. 

3 ‘‘(2) TERM.—A memorandum of under4 standing— 

5 ‘‘(A) shall have term of not more than 3 

6 years; and 

7 ‘‘(B) shall be renewable. 

8 ‘‘(3) ACCEPTANCE OF JURISDICTION.—In a 

9 memorandum of understanding, the State shall con10 sent to accept the jurisdiction of the Federal courts for 

11 the compliance, discharge, and enforcement of any re12 sponsibility of the Secretary that the State assumes. 

13 ‘‘(4) MONITORING.—The Secretary shall— 

14 ‘‘(A) monitor compliance by the State with 

15 the memorandum of understanding and the pro16 vision by the State of financial resources to 

17 carry out the memorandum of understanding; 

18 and 

19 ‘‘(B) take into account the performance by 

20 the State when considering renewal of the memo21 randum of understanding. 

22 ‘‘(d) TERMINATION.—The Secretary may terminate 

23 any assumption of responsibility under a memorandum of 

24 understanding on a determination that the State is not ade-
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1 quately carrying out the responsibilities assigned to the 

2 State. 

3 ‘‘(e) STATE AGENCY DEEMED TO BE FEDERAL AGEN4 CY.—A State agency that is assigned a responsibility under 

5 a memorandum of understanding shall be deemed to be a 

6 Federal agency for the purposes of the Federal law under 

7 which the responsibility is exercised.’’. 

8 (b) CONFORMING AMENDMENT.—The analysis for 

9 chapter 3 of title 23, United States Code (as amended by 

10 section 1511(b)), is amended by inserting after the item re11 lating to section 326 the following: 

‘‘327. Assumption of responsibility for categorical exclusions.’’. 

12 SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY 

13 PILOT PROGRAM. 

14 (a) IN GENERAL.—Chapter 3 of title 23, United States 

15 Code (as amended by section 1512(a)), is amended by in16 serting after section 327 the following: 

17 ‘‘§ 328. Surface transportation project delivery pilot 

18 program 

19 ‘‘(a) ESTABLISHMENT.— 

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

21 out a surface transportation project delivery pilot 

22 program (referred to in this section as the ‘program’). 

23 ‘‘(2) ASSUMPTION OF RESPONSIBILITY.— 

24 ‘‘(A) IN GENERAL.—Subject to the other 

25 provisions of this section, with the written agree-
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1 ment of the Secretary and a State, which may 

2 be in the form of a memorandum of under3 standing, the Secretary may assign, and the 

4 State may assume, the responsibilities of the Sec5 retary with respect to 1 or more highway 

6 projects within the State under the National En7 vironmental Policy Act of 1969 (42 U.S.C. 4321 

8 et seq.). 

9 ‘‘(B) ADDITIONAL RESPONSIBILITY.—If a 

10 State assumes responsibility under subparagraph 

11 (A)— 

12 ‘‘(i) the Secretary may assign to the 

13 State, and the State may assume, all or 

14 part of the responsibilities of the Secretary 

15 for environmental review, consultation, or 

16 other action required under any Federal en17 vironmental law pertaining to the review or 

18 approval of a specific project; but 

19 ‘‘(ii) the Secretary may not assign— 

20 ‘‘(I) responsibility for any con21 formity determination required under 

22 section 176 of the Clean Air Act (42 

23 U.S.C. 7506); or 

24 ‘‘(II) any responsibility imposed 

25 on the Secretary by section 134 or 135. 
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1 ‘‘(C) PROCEDURAL AND SUBSTANTIVE RE2 QUIREMENTS.—A State shall assume responsi3 bility under this section subject to the same pro4 cedural and substantive requirements as would 

5 apply if that responsibility were carried out by 

6 the Secretary. 

7 ‘‘(D) FEDERAL RESPONSIBILITY.—Any re8 sponsibility of the Secretary not explicitly as9 sumed by the State by written agreement under 

10 this section shall remain the responsibility of the 

11 Secretary. 

12 ‘‘(E) NO EFFECT ON AUTHORITY.—Nothing 

13 in this section preempts or interferes with any 

14 power, jurisdiction, responsibility, or authority 

15 of an agency, other than the Department of 

16 Transportation, under applicable law (including 

17 regulations) with respect to a project. 

18 ‘‘(b) STATE PARTICIPATION.— 

19 ‘‘(1) NUMBER OF PARTICIPATING STATES.—The 

20 Secretary may permit not more than 5 States (in21 cluding the State of Oklahoma) to participate in the 

22 program. 

23 ‘‘(2) APPLICATION.—Not later than 270 days 

24 after the date of enactment of this section, the Sec25 retary shall promulgate regulations that establish re-
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1 quirements relating to information required to be con2 tained in any application of a State to participate 

3 in the program, including, at a minimum— 

4 ‘‘(A) the projects or classes of projects for 

5 which the State anticipates exercising the au6 thority that may be granted under the program; 

7 ‘‘(B) verification of the financial resources 

8 necessary to carry out the authority that may be 

9 granted under the program; and 

10 ‘‘(C) evidence of the notice and solicitation 

11 of public comment by the State relating to par12 ticipation of the State in the program, including 

13 copies of comments received from that solicita14 tion. 

15 ‘‘(3) PUBLIC NOTICE.— 

16 ‘‘(A) IN GENERAL.—Each State that sub17 mits an application under this subsection shall 

18 give notice of the intent of the State to partici19 pate in the program not later than 30 days be20 fore the date of submission of the application. 

21 ‘‘(B) METHOD OF NOTICE AND SOLICITA22 TION.—The State shall provide notice and solicit 

23 public comment under this paragraph by pub24 lishing the complete application of the State in 
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1 accordance with the appropriate public notice 

2 law of the State. 

3 ‘‘(4) SELECTION CRITERIA.—The Secretary may 

4 approve the application of a State under this section 

5 only if— 

6 ‘‘(A) the regulatory requirements under 

7 paragraph (2) have been met; 

8 ‘‘(B) the Secretary determines that the State 

9 has the capability, including financial and per10 sonnel, to assume the responsibility; and 

11 ‘‘(C) the head of the State agency having 

12 primary jurisdiction over highway matters en13 ters into a written agreement with the Secretary 

14 described in subsection (c). 

15 ‘‘(5) OTHER FEDERAL AGENCY VIEWS.—If a 

16 State applies to assume a responsibility of the Sec17 retary that would have required the Secretary to con18 sult with another Federal agency, the Secretary shall 

19 solicit the views of the Federal agency before approv20 ing the application. 

21 ‘‘(c) WRITTEN AGREEMENT.—A written agreement 

22 under this section shall— 

23 ‘‘(1) be executed by the Governor or the top-rank24 ing transportation official in the State who is charged 

25 with responsibility for highway construction; 
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1 ‘‘(2) be in such form as the Secretary may pre2 scribe; 

3 ‘‘(3) provide that the State— 

4 ‘‘(A) agrees to assume all or part of the re5 sponsibilities of the Secretary described in sub6 section (a); 

7 ‘‘(B) expressly consents, on behalf of the 

8 State, to accept the jurisdiction of the Federal 

9 courts for the compliance, discharge, and enforce10 ment of any responsibility of the Secretary as11 sumed by the State; 

12 ‘‘(C) certifies that State laws (including 

13 regulations) are in effect that— 

14 ‘‘(i) authorize the State to take the ac15 tions necessary to carry out the responsibil16 ities being assumed; and 

17 ‘‘(ii) are comparable to section 552 of 

18 title 5, including providing that any deci19 sion regarding the public availability of a 

20 document under those State laws is review21 able by a court of competent jurisdiction; 

22 and 

23 ‘‘(D) agrees to maintain the financial re24 sources necessary to carry out the responsibilities 

25 being assumed. 
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1 ‘‘(d) JURISDICTION.— 

2 ‘‘(1) IN GENERAL.—The United States district 

3 courts shall have exclusive jurisdiction over any civil 

4 action against a State for failure to carry out any re5 sponsibility of the State under this section. 

6 ‘‘(2) LEGAL STANDARDS AND REQUIREMENTS.— 

7 A civil action under paragraph (1) shall be governed 

8 by the legal standards and requirements that would 

9 apply in such a civil action against the Secretary 

10 had the Secretary taken the actions in question. 

11 ‘‘(3) INTERVENTION.—The Secretary shall have 

12 the right to intervene in any action described in 

13 paragraph (1). 

14 ‘‘(e) EFFECT OF ASSUMPTION OF RESPONSIBILITY.— 

15 A State that assumes responsibility under subsection (a)(2) 

16 shall be solely responsible and solely liable for carrying out, 

17 in lieu of the Secretary, the responsibilities assumed under 

18 subsection (a)(2), until the program is terminated as pro19 vided in subsection (i). 

20 ‘‘(f) LIMITATIONS ON AGREEMENTS.—Nothing in this 

21 section permits a State to assume any rulemaking author22 ity of the Secretary under any Federal law. 

23 ‘‘(g) AUDITS.— 

24 ‘‘(1) IN GENERAL.—To ensure compliance by a 

25 State with any agreement of the State under sub-
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1 section (c)(1) (including compliance by the State with 

2 all Federal laws for which responsibility is assumed 

3 under subsection (a)(2)), for each State participating 

4 in the program under this section, the Secretary shall 

5 conduct— 

6 ‘‘(A) semiannual audits during each of the 

7 first 2 years of State participation; and 

8 ‘‘(B) annual audits during each subsequent 

9 year of State participation. 

10 ‘‘(2) PUBLIC AVAILABILITY AND COMMENT.— 

11 ‘‘(A) IN GENERAL.—An audit conducted 

12 under paragraph (1) shall be provided to the 

13 public for comment. 

14 ‘‘(B) RESPONSE.—Not later than 60 days 

15 after the date on which the period for public 

16 comment ends, the Secretary shall respond to 

17 public comments received under subparagraph 

18 (A). 

19 ‘‘(h) REPORT TO CONGRESS.—The Secretary shall sub20 mit to Congress an annual report that describes the admin21 istration of the program. 

22 ‘‘(i) TERMINATION.— 

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), the program shall terminate on the date 
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1 that is 6 years after the date of enactment of this sec2 tion. 

3 ‘‘(2) TERMINATION BY SECRETARY.—The Sec4 retary may terminate the participation of any State 

5 in the program if— 

6 ‘‘(A) the Secretary determines that the State 

7 is not adequately carrying out the responsibil8 ities assigned to the State; 

9 ‘‘(B) the Secretary provides to the State— 

10 ‘‘(i) notification of the determination 

11 of noncompliance; and 

12 ‘‘(ii) a period of at least 30 days dur13 ing which to take such corrective action as 

14 the Secretary determines is necessary to 

15 comply with the applicable agreement; and 

16 ‘‘(C) the State, after the notification and 

17 period provided under subparagraph (B), fails to 

18 take satisfactory corrective action, as determined 

19 by Secretary.’’. 

20 (b) CONFORMING AMENDMENT.—The analysis for 

21 chapter 3 of title 23, United States Code (as amended by 

22 section 1512(b)), is amended by inserting after the item re23 lating to section 327 the following: 

‘‘328. Surface transportation project delivery pilot program.’’. 
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1 SEC. 1514. PARKS, RECREATION AREAS, WILDLIFE AND WA2 TERFOWL REFUGES, AND HISTORIC SITES. 

3 (a) PROGRAMS AND PROJECTS WITH DE MINIMIS IM4 PACTS.— 

5 (1) TITLE 23.—Section 138 of title 23, United 

6 States Code, is amended— 

7 (A) in the first sentence, by striking ‘‘It is 

8 hereby’’ and inserting the following: 

9 ‘‘(a) DECLARATION OF POLICY.—It is’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(b) DE MINIMIS IMPACTS.— 

12 ‘‘(1) REQUIREMENTS.— 

13 ‘‘(A) IN GENERAL.—The requirements of 

14 this section shall be considered to be satisfied 

15 with respect to an area described in paragraph 

16 (2) or (3) if the Secretary determines, in accord17 ance with this subsection, that a transportation 

18 program or project will have a de minimis im19 pact on the area. 

20 ‘‘(B) CRITERIA.—In making any deter21 mination under this subsection, the Secretary 

22 shall consider to be part of a transportation pro23 gram or project any avoidance, minimization, 

24 mitigation, or enhancement measures that are 

25 required to be implemented as a condition of ap26 proval of the transportation program or project. 
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1 ‘‘(2) HISTORIC SITES.—With respect to historic 

2 sites, the Secretary may make a finding of de mini3 mis impact only if— 

4 ‘‘(A) the Secretary has determined, in ac5 cordance with the consultation process required 

6 under section 106 of the National Historic Pres7 ervation Act (16 U.S.C. 470f), that— 

8 ‘‘(i) the transportation program or 

9 project will have no adverse effect on the 

10 historic site; or 

11 ‘‘(ii) there will be no historic prop12 erties affected by the transportation pro13 gram or project; 

14 ‘‘(B) the finding of the Secretary has re15 ceived written concurrence from the applicable 

16 State historic preservation officer or tribal his17 toric preservation officer (and from the Advisory 

18 Council on Historic Preservation, if partici19 pating in the consultation); and 

20 ‘‘(C) the finding of the Secretary has been 

21 developed in consultation with parties consulting 

22 as part of the process referred to in subpara23 graph (A). 

24 ‘‘(3) PARKS, RECREATION AREAS, AND WILDLIFE

25 AND WATERFOWL REFUGES.—With respect to parks, 
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1 recreation areas, and wildlife or waterfowl refuges, 

2 the Secretary may make a finding of de minimis im3 pact only if— 

4 ‘‘(A) the Secretary has determined, in ac5 cordance with the National Environmental Pol6 icy Act of 1969 (42 U.S.C. 4321 et seq.) (includ7 ing public notice and opportunity for public re8 view and comment), that the transportation pro9 gram or project will not adversely affect the ac10 tivities, features, and attributes of the park, 

11 recreation area, or wildlife or waterfowl refuge 

12 eligible for protection under this section; and 

13 ‘‘(B) the finding of the Secretary has re14 ceived concurrence from the officials with juris15 diction over the park, recreation area, or wildlife 

16 or waterfowl refuge.’’. 

17 (2) TITLE 49.—Section 303 of title 49, United 

18 States Code, is amended— 

19 (A) by striking ‘‘(c) The Secretary’’ and in20 serting the following: 

21 ‘‘(c) APPROVAL OF PROGRAMS AND PROJECTS.—Sub22 ject to subsection (d), the Secretary’’; and 

23 (B) by adding at the end the following: 

24 ‘‘(d) DE MINIMIS IMPACTS.— 

25 ‘‘(1) REQUIREMENTS.— 
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1 ‘‘(A) IN GENERAL.—The requirements of 

2 this section shall be considered to be satisfied 

3 with respect to an area described in paragraph 

4 (2) or (3) if the Secretary determines, in accord5 ance with this subsection, that a transportation 

6 program or project will have a de minimis im7 pact on the area. 

8 ‘‘(B) CRITERIA.—In making any deter9 mination under this subsection, the Secretary 

10 shall consider to be part of a transportation pro11 gram or project any avoidance, minimization, 

12 mitigation, or enhancement measures that are 

13 required to be implemented as a condition of ap14 proval of the transportation program or project. 

15 ‘‘(2) HISTORIC SITES.—With respect to historic 

16 sites, the Secretary may make a finding of de mini17 mis impact only if— 

18 ‘‘(A) the Secretary has determined, in ac19 cordance with the consultation process required 

20 under section 106 of the National Historic Pres21 ervation Act (16 U.S.C. 470f), that— 

22 ‘‘(i) the transportation program or 

23 project will have no adverse effect on the 

24 historic site; or 
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1 ‘‘(ii) there will be no historic prop2 erties affected by the transportation pro3 gram or project; 

4 ‘‘(B) the finding of the Secretary has re5 ceived written concurrence from the applicable 

6 State historic preservation officer or tribal his7 toric preservation officer (and from the Advisory 

8 Council on Historic Preservation, if partici9 pating in the consultation); and 

10 ‘‘(C) the finding of the Secretary has been 

11 developed in consultation with parties consulting 

12 as part of the process referred to in subpara13 graph (A). 

14 ‘‘(3) PARKS, RECREATION AREAS, AND WILDLIFE

15 AND WATERFOWL REFUGES.—With respect to parks, 

16 recreation areas, and wildlife or waterfowl refuges, 

17 the Secretary may make a finding of de minimis im18 pact only if— 

19 ‘‘(A) the Secretary has determined, in ac20 cordance with the National Environmental Pol21 icy Act of 1969 (42 U.S.C. 4321 et seq.) (includ22 ing public notice and opportunity for public re23 view and comment), that the transportation pro24 gram or project will not adversely affect the ac25 tivities, features, and attributes of the park, 
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1 recreation area, or wildlife or waterfowl refuge 

2 eligible for protection under this section; and 

3 ‘‘(B) the finding of the Secretary has re4 ceived concurrence from the officials with juris5 diction over the park, recreation area, or wildlife 

6 or waterfowl refuge.’’. 

7 (b) CLARIFICATION OF EXISTING STANDARDS.— 

8 (1) IN GENERAL.—Not later than 1 year after 

9 the date of enactment of this Act, the Secretary shall 

10 (in consultation with affected agencies and interested 

11 parties) promulgate regulations that clarify the fac12 tors to be considered and the standards to be applied 

13 in determining the prudence and feasibility of alter14 natives under section 138 of title 23 and section 303 

15 of title 49, United States Code. 

16 (2) REQUIREMENTS.—The regulations— 

17 (A) shall clarify the application of the legal 

18 standards to a variety of different types of trans19 portation programs and projects depending on 

20 the circumstances of each case; and 

21 (B) may include, as appropriate, examples 

22 to facilitate clear and consistent interpretation 

23 by agency decisionmakers. 

24 (c) IMPLEMENTATION STUDY.— 
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1 (1) IN GENERAL.—The Secretary and the Trans2 portation Research Board of the National Academy of 

3 Sciences shall jointly conduct a study on the imple4 mentation of this section and the amendments made 

5 by this section. 

6 (2) COMPONENTS.—In conducting the study, the 

7 Secretary and the Transportation Research Board 

8 shall evaluate— 

9 (A) the processes developed under this sec10 tion and the amendments made by this section 

11 and the efficiencies that may result; 

12 (B) the post-construction effectiveness of im13 pact mitigation and avoidance commitments 

14 adopted as part of projects conducted under this 

15 section and the amendments made by this sec16 tion; and 

17 (C) the quantity of projects with impacts 

18 that are considered de minimis under this sec19 tion and the amendments made by this section, 

20 including information on the location, size, and 

21 cost of the projects. 

22 (3) REPORT REQUIREMENT.—The Secretary and 

23 the Transportation Research Board shall prepare— 

24 (A) not earlier than the date that is 4 years 

25 after the date of enactment of this Act, a report 
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1 on the results of the study conducted under this 

2 subsection; and 

3 (B) not later than September 30, 2009, an 

4 update on the report required under subpara5 graph (A). 

6 (4) REPORT RECIPIENTS.—The Secretary and 

7 the Transportation Research Board shall— 

8 (A) submit the report and update required 

9 under paragraph (3) to— 

10 (i) the appropriate committees of Con11 gress; 

12 (ii) the Secretary of the Interior; and 

13 (iii) the Advisory Council on Historic 

14 Preservation; and 

15 (B) make the report and update available to 

16 the public. 

17 SEC. 1515. REGULATIONS. 

18 Except as provided in section 1513, not later than 1 

19 year after the date of enactment of this Act, the Secretary 

20 shall promulgate regulations necessary to implement the 

21 amendments made by chapter 1 and this chapter. 

22 CHAPTER 3—MISCELLANEOUS 

23 SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION. 

24 Section 108 of title 23, United States Code, is amended 

25 by adding at the end the following: 
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1 ‘‘(d) CRITICAL REAL PROPERTY ACQUISITION.— 

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

3 funds apportioned to a State under this title may be 

4 used to pay the costs of acquiring any real property 

5 that is determined to be critical under paragraph (2) 

6 for a project proposed for funding under this title. 

7 ‘‘(2) REIMBURSEMENT.—The Federal share of 

8 the costs referred to in paragraph (1) shall be eligible 

9 for reimbursement out of funds apportioned to a State 

10 under this title if, before the date of acquisition, the 

11 Secretary determines that— 

12 ‘‘(A) the property is offered for sale on the 

13 open market; 

14 ‘‘(B) in acquiring the property, the State 

15 will comply with the Uniform Relocation Assist16 ance and Real Property Acquisition Policies Act 

17 of 1970 (42 U.S.C. 4601 et seq.); and 

18 ‘‘(C) immediate acquisition of the property 

19 is critical because— 

20 ‘‘(i) based on an appraisal of the prop21 erty, the value of the property is increasing 

22 significantly; 

23 ‘‘(ii) there is an imminent threat of de24 velopment or redevelopment of the property; 

25 and 
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1 ‘‘(iii) the property is necessary for the 

2 implementation of the goals stated in the 

3 proposal for the project. 

4 ‘‘(3) APPLICABLE LAW.—An acquisition of real 

5 property under this section shall be considered to be 

6 an exempt project under section 176 of the Clean Air 

7 Act (42 U.S.C. 7506). 

8 ‘‘(4) ENVIRONMENTAL REVIEW.— 

9 ‘‘(A) IN GENERAL.—A project proposed to 

10 be conducted under this title shall not be con11 ducted on property acquired under paragraph 

12 (1) until all required environmental reviews for 

13 the project have been completed. 

14 ‘‘(B) EFFECT ON CONSIDERATION OF

15 PROJECT ALTERNATIVES.—The number of crit16 ical acquisitions of real property associated with 

17 a project shall not affect the consideration of 

18 project alternatives during the environmental re19 view process. 

20 ‘‘(5) PROCEEDS FROM THE SALE OR LEASE OF

21 REAL PROPERTY.—Section 156(c) shall not apply to 

22 the sale, use, or lease of any real property acquired 

23 under paragraph (1).’’. 
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1 SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE. 

2 Section 104 of title 23, United States Code, is amended 

3 by adding at the end the following: 

4 ‘‘(m) PLANNING CAPACITY BUILDING INITIATIVE.— 

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

6 out a planning capacity building initiative to sup7 port enhancements in transportation planning to— 

8 ‘‘(A) strengthen the processes and products 

9 of metropolitan and statewide transportation 

10 planning under this title; 

11 ‘‘(B) enhance tribal capacity to conduct 

12 joint transportation planning under chapter 2; 

13 ‘‘(C) participate in the metropolitan and 

14 statewide transportation planning programs 

15 under this title; and 

16 ‘‘(D) increase the knowledge and skill level 

17 of participants in metropolitan and statewide 

18 transportation. 

19 ‘‘(2) PRIORITY.—The Secretary shall give pri20 ority to planning practices and processes that sup21 port— 

22 ‘‘(A) the transportation elements of home23 land security planning, including— 

24 ‘‘(i) training and best practices relat25 ing to emergency evacuation; 
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1 ‘‘(ii) developing materials to assist 

2 areas in coordinating emergency manage3 ment and transportation officials; and 

4 ‘‘(iii) developing training on how 

5 planning organizations may examine secu6 rity issues; 

7 ‘‘(B) performance-based planning, includ8 ing— 

9 ‘‘(i) data and data analysis tech10 nologies to be shared with States, metropoli11 tan planning organizations, local govern12 ments, and nongovernmental organizations 

13 that— 

14 ‘‘(I) participate in transportation 

15 planning; 

16 ‘‘(II) use the data and data anal17 ysis to engage in metropolitan, tribal, 

18 or statewide transportation planning; 

19 ‘‘(III) involve the public in the de20 velopment of transportation plans, 

21 projects, and alternative scenarios; and 

22 ‘‘(IV) develop strategies to avoid, 

23 minimize, and mitigate the impacts of 

24 transportation facilities and projects; 

25 and 
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1 ‘‘(ii) improvement of the quality of 

2 congestion management systems, including 

3 the development of— 

4 ‘‘(I) a measure of congestion; 

5 ‘‘(II) a measure of transportation 

6 system reliability; and 

7 ‘‘(III) a measure of induced de8 mand; 

9 ‘‘(C) safety planning, including— 

10 ‘‘(i) development of State strategic 

11 safety plans consistent with section 148; 

12 ‘‘(ii) incorporation of work zone safety 

13 into planning; and 

14 ‘‘(iii) training in the development of 

15 data systems relating to highway safety; 

16 ‘‘(D) operations planning, including— 

17 ‘‘(i) developing training of the integra18 tion of transportation system operations 

19 and management into the transportation 

20 planning process; and 

21 ‘‘(ii) training and best practices relat22 ing to regional concepts of operations; 

23 ‘‘(E) freight planning, including— 

24 ‘‘(i) modeling of freight at a regional 

25 and statewide level; and 
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1 ‘‘(ii) techniques for engaging the 

2 freight community with the planning proc3 ess; 

4 ‘‘(F) air quality planning, including— 

5 ‘‘(i) assisting new and existing non6 attainment and maintenance areas in de7 veloping the technical capacity to perform 

8 air quality conformity analysis; 

9 ‘‘(ii) providing training on areas such 

10 as modeling and data collection to support 

11 air quality planning and analysis; 

12 ‘‘(iii) developing concepts and tech13 niques to assist areas in meeting air quality 

14 performance timeframes; and 

15 ‘‘(iv) developing materials to explain 

16 air quality issues to decisionmakers and the 

17 public; and 

18 ‘‘(G) integration of environment and plan19 ning. 

20 ‘‘(3) USE OF FUNDS.—The Secretary shall use 

21 amounts made available under paragraph (4) to 

22 make grants to, or enter into contracts, cooperative 

23 agreements, and other transactions with, a Federal 

24 agency, State agency, local agency, federally recog25 nized Indian tribal government or tribal consortium, 
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1 authority, association, nonprofit or for-profit corpora2 tion, or institution of higher education for research, 

3 program development, information collection and dis4 semination, and technical assistance. 

5 ‘‘(4) SET-ASIDE.— 

6 ‘‘(A) IN GENERAL.—On October 1 of each 

7 fiscal year, of the funds made available under 

8 subsection (a), the Secretary shall set aside 

9 $4,000,000 to carry out this subsection. 

10 ‘‘(B) FEDERAL SHARE.—The Federal share 

11 of the cost of an activity carried out using funds 

12 made available under subparagraph (A) shall be 

13 100 percent. 

14 ‘‘(C) AVAILABILITY.—Funds made available 

15 under subparagraph (A) shall remain available 

16 until expended.’’. 

17 Subtitle F—Environment 

18 SEC. 1601. ENVIRONMENTAL RESTORATION AND POLLU19 TION ABATEMENT; CONTROL OF INVASIVE 

20 PLANT SPECIES AND ESTABLISHMENT OF NA21 TIVE SPECIES. 

22 (a) MODIFICATION TO NHS/STP FOR ENVIRON23 MENTAL RESTORATION, POLLUTION ABATEMENT, AND

24 INVASIVE SPECIES.— 
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1 (1) MODIFICATIONS TO NATIONAL HIGHWAY SYS2 TEM.—Section 103(b)(6) of title 23, United States 

3 Code, is amended by adding at the end the following: 

4 ‘‘(Q) Environmental restoration and pollu5 tion abatement in accordance with section 165. 

6 ‘‘(R) Control of invasive plant species and 

7 establishment of native species in accordance 

8 with section 166.’’. 

9 (2) MODIFICATIONS TO SURFACE TRANSPOR10 TATION PROGRAM.—Section 133(b) of title 23, is 

11 amended by striking paragraph (14) and inserting 

12 the following: 

13 ‘‘(14) Environmental restoration and pollution 

14 abatement in accordance with section 165. 

15 ‘‘(15) Control of invasive plant species and es16 tablishment of native species in accordance with sec17 tion 166.’’. 

18 (b) ELIGIBLE ACTIVITIES.—Subchapter I of chapter 1 

19 of title 23, United States Code, is amended by adding at 

20 the end the following: 

21 ‘‘§ 165. Eligibility for environmental restoration and 

22 pollution abatement 

23 ‘‘(a) IN GENERAL.—Subject to subsection (b), environ24 mental restoration and pollution abatement to minimize or 

25 mitigate the impacts of any transportation project funded 
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1 under this title (including retrofitting and construction of 

2 storm water treatment systems to meet Federal and State 

3 requirements under sections 401 and 402 of the Federal 

4 Water Pollution Control Act (33 U.S.C. 1341, 1342)) may 

5 be carried out to address water pollution or environmental 

6 degradation caused wholly or partially by a transportation 

7 facility. 

8 ‘‘(b) MAXIMUM EXPENDITURE.—In a case in which a 

9 transportation facility is undergoing reconstruction, reha10 bilitation, resurfacing, or restoration, the expenditure of 

11 funds under this section for environmental restoration or 

12 pollution abatement described in subsection (a) shall not 

13 exceed 20 percent of the total cost of the reconstruction, re14 habilitation, resurfacing, or restoration of the facility. 

15 ‘‘§ 166. Control of invasive plant species and establish16 ment of native species 

17 ‘‘(a) DEFINITIONS.—In this section: 

18 ‘‘(1) INVASIVE PLANT SPECIES—The term 

19 ‘invasive plant species’ means a nonindigenous spe20 cies the introduction of which causes or is likely to 

21 cause economic or environmental harm or harm to 

22 human health. 

23 ‘‘(2) NATIVE PLANT SPECIES.—The term ‘native 

24 plant species’ means, with respect to a particular eco25 system, a species that, other than as result of an in-
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1 troduction, historically occurred or currently occurs 

2 in that ecosystem. 

3 ‘‘(b) CONTROL OF SPECIES.— 

4 ‘‘(1) IN GENERAL.—In accordance with all ap5 plicable Federal law (including regulations), funds 

6 made available to carry out this section may be used 

7 for— 

8 ‘‘(A) participation in the control of invasive 

9 plant species; and 

10 ‘‘(B) the establishment of native species. 

11 ‘‘(2) INCLUDED ACTIVITIES.—The participation 

12 and establishment under paragraph (1) may in13 clude— 

14 ‘‘(A) participation in statewide inventories 

15 of invasive plant species and desirable plant spe16 cies; 

17 ‘‘(B) regional native plant habitat conserva18 tion and mitigation; 

19 ‘‘(C) native revegetation; 

20 ‘‘(D) elimination of invasive species to cre21 ate fuel breaks for the prevention and control of 

22 wildfires; and 

23 ‘‘(E) training. 

24 ‘‘(3) CONTRIBUTIONS.— 
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), an activity described in paragraph 

3 (1) may be carried out concurrently with, in ad4 vance of, or following the construction of a 

5 project funded under this title. 

6 ‘‘(B) CONDITION FOR ACTIVITIES CON7 DUCTED IN ADVANCE OF PROJECT CONSTRUC8 TION.—An activity described in paragraph (1) 

9 may be carried out in advance of construction of 

10 a project only if the activity is carried out in ac11 cordance with all applicable requirements of 

12 Federal law (including regulations) and State 

13 transportation planning processes.’’. 

14 (c) CONFORMING AMENDMENT.—The analysis for sub15 chapter I of chapter 1 of title 23, United States Code (as 

16 amended by section 1406(b)), is amended by adding at the 

17 end the following: 

‘‘165. Eligibility for environmental restoration and pollution abatement. 

‘‘166. Control of invasive plant species and establishment of native species.’’. 

18 SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM. 

19 (a) IN GENERAL.—Section 162 of title 23, United 

20 States Code, is amended— 

21 (1) in subsection (a)(1), by striking ‘‘the roads 

22 as’’ and all that follows and inserting ‘‘the roads as— 

23 ‘‘(A) National Scenic Byways; 

24 ‘‘(B) All-American Roads; or 
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1 ‘‘(C) America’s Byways.’’; 

2 (2) in subsection (b)— 

3 (A) in paragraph (1)(A), by striking ‘‘des4 ignated as’’ and all that follows and inserting 

5 ‘‘designated as— 

6 ‘‘(i) National Scenic Byways; 

7 ‘‘(ii) All-American Roads; or 

8 ‘‘(iii) America’s Byways; and’’; 

9 (B) in paragraph (2)— 

10 (i) in subparagraph (A), by striking 

11 ‘‘Byway or All-American Road’’ and insert12 ing ‘‘Byway, All-American Road, or 1 of 

13 America’s Byways’’; and 

14 (ii) in subparagraph (B), by striking 

15 ‘‘designation as a’’ and all that follows and 

16 inserting ‘‘designation as— 

17 ‘‘(i) a National Scenic Byway; 

18 ‘‘(ii) an All-American Road; or 

19 ‘‘(iii) 1 of America’s Byways; and’’; 

20 and 

21 (3) in subsection (c)(4), by striking ‘‘passing 

22 lane,’’. 

23 (b) RESEARCH, TECHNICAL ASSISTANCE, MARKETING, 

24 AND PROMOTION.—Section 162 of title 23, United States 

25 Code, is amended— 
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1 (1) by redesignating subsections (d), (e), and (f) 

2 as subsections (e), (f), and (g), respectively; 

3 (2) by inserting after subsection (c) the fol4 lowing: 

5 ‘‘(d) RESEARCH, TECHNICAL ASSISTANCE, MAR6 KETING, AND PROMOTION.— 

7 ‘‘(1) IN GENERAL.—The Secretary may carry out 

8 technical assistance, marketing, market research, and 

9 promotion with respect to State Scenic Byways, Na10 tional Scenic Byways, All-American Roads, and 

11 America’s Byways. 

12 ‘‘(2) COOPERATION, GRANTS, AND CONTRACTS.— 

13 The Secretary may make grants to, or enter into con14 tracts, cooperative agreements, and other transactions 

15 with, any Federal agency, State agency, authority, 

16 association, institution, for-profit or nonprofit cor17 poration, organization, or person, to carry out 

18 projects and activities under this subsection. 

19 ‘‘(3) FUNDS.—The Secretary may use not more 

20 than $2,000,000 for each fiscal year of funds made 

21 available for the National Scenic Byways Program to 

22 carry out projects and activities under this sub23 section. 

24 ‘‘(4) PRIORITY.—The Secretary shall give pri25 ority under this subsection to partnerships that lever-
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1 age Federal funds for research, technical assistance, 

2 marketing and promotion.’’; and 

3 (3) in subsection (g) (as redesignated by para4 graph (1)), by striking ‘‘80 percent’’ and inserting 

5 ‘‘the share applicable under section 120, as adjusted 

6 under subsection (d) of that section’’. 

7 SEC. 1603. RECREATIONAL TRAILS PROGRAM. 

8 (a) RECREATIONAL TRAILS PROGRAM FORMULA.— 

9 Section 104(h)(1) of title 23, United States Code, is amend10 ed— 

11 (1) by striking ‘‘Whenever’’ and inserting the fol12 lowing: 

13 ‘‘(A) IN GENERAL.—In any case in which’’; 

14 (2) by striking ‘‘research and technical assist15 ance under the recreational trails program and for 

16 the administration of the National Recreational 

17 Trails Advisory Committee’’ and inserting ‘‘research, 

18 technical assistance, and training under the rec19 reational trails program’’; and 

20 (3) by striking ‘‘The Secretary’’ and inserting 

21 the following: 

22 ‘‘(B) CONTRACTS AND AGREEMENTS.—The 

23 Secretary’’. 
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1 (b) RECREATIONAL TRAILS PROGRAM ADMINISTRA2 TION.—Section 206 of title 23, United States Code, is 

3 amended— 

4 (1) in subsection (d)— 

5 (A) by striking paragraph (2) and inserting 

6 the following: 

7 ‘‘(2) PERMISSIBLE USES.—Permissible uses of 

8 funds apportioned to a State for a fiscal year to carry 

9 out this section include— 

10 ‘‘(A) maintenance and restoration of rec11 reational trails; 

12 ‘‘(B) development and rehabilitation of 

13 trailside and trailhead facilities and trail link14 ages for recreational trails; 

15 ‘‘(C) purchase and lease of recreational trail 

16 construction and maintenance equipment; 

17 ‘‘(D) construction of new recreational trails, 

18 except that, in the case of new recreational trails 

19 crossing Federal land, construction of the trails 

20 shall be— 

21 ‘‘(i) permissible under other law; 

22 ‘‘(ii) necessary and recommended by a 

23 statewide comprehensive outdoor recreation 

24 plan that is— 
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1 ‘‘(I) required under the Land and 

2 Water Conservation Fund Act of 1965 

3 (16 U.S.C. 460l–4 et seq.); and 

4 ‘‘(II) in effect; 

5 ‘‘(iii) approved by the administering 

6 agency of the State designated under sub7 section (c)(1)(A); and 

8 ‘‘(iv) approved by each Federal agency 

9 having jurisdiction over the affected land, 

10 under such terms and conditions as the 

11 head of the Federal agency determines to be 

12 appropriate, except that the approval shall 

13 be contingent on compliance by the Federal 

14 agency with all applicable laws, includ15 ing— 

16 ‘‘(I) the National Environmental 

17 Policy Act of 1969 (42 U.S.C. 4321 et 

18 seq.); 

19 ‘‘(II) the Forest and Rangeland 

20 Renewable Resources Planning Act of 

21 1974 (16 U.S.C. 1600 et seq.); and 

22 ‘‘(III) the Federal Land Policy 

23 and Management Act of 1976 (43 

24 U.S.C. 1701 et seq.); 
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1 ‘‘(E) acquisition of easements and fee sim2 ple title to property for recreational trails or rec3 reational trail corridors; 

4 ‘‘(F) assessment of trail conditions for ac5 cessibility and maintenance; 

6 ‘‘(G) use of trail crews, youth conservation 

7 or service corps, or other appropriate means to 

8 carry out activities under this section; 

9 ‘‘(H) development and dissemination of 

10 publications and operation of educational pro11 grams to promote safety and environmental pro12 tection, as those objectives relate to the use of rec13 reational trails, supporting non-law enforcement 

14 trail safety and trail use monitoring patrol pro15 grams, and providing trail-related training, but 

16 in an amount not to exceed 5 percent of the ap17 portionment made to the State for the fiscal 

18 year; and 

19 ‘‘(I) payment of costs to the State incurred 

20 in administering the program, but in an amount 

21 not to exceed 7 percent of the apportionment 

22 made to the State for the fiscal year to carry out 

23 this section.’’; and 

24 (B) in paragraph (3)— 
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1 (i) in subparagraph (D), by striking 

2 ‘‘(2)(F)’’ and inserting ‘‘(2)(I)’’; and 

3 (ii) by adding at the end the following: 

4 ‘‘(E) USE OF YOUTH CONSERVATION OR

5 SERVICE CORPS.—A State shall make available 

6 not less than 10 percent of the apportionments of 

7 the State to provide grants to, or to enter into 

8 cooperative agreements or contracts with, quali9 fied youth conservation or service corps to per10 form recreational trails program activities.’’; 

11 (2) in subsection (f)— 

12 (A) in paragraph (1)— 

13 (i) by inserting ‘‘and the Federal share 

14 of the administrative costs of a State’’ after 

15 ‘‘project’’; and 

16 (ii) by striking ‘‘not exceed 80 percent’’ 

17 and inserting ‘‘be determined in accordance 

18 with section 120’’; 

19 (B) in paragraph (2)— 

20 (i) in subparagraph (A), by striking 

21 ‘‘80 percent of’’ and inserting ‘‘the amount 

22 determined in accordance with section 120 

23 for’’; and 
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1 (ii) in subparagraph (B), by inserting 

2 ‘‘sponsoring the project’’ after ‘‘Federal 

3 agency’’; 

4 (C) by striking paragraph (5); 

5 (D) by redesignating paragraph (4) as 

6 paragraph (5); 

7 (E) by inserting after paragraph (3) the fol8 lowing: 

9 ‘‘(4) USE OF RECREATIONAL TRAILS PROGRAM

10 FUNDS TO MATCH OTHER FEDERAL PROGRAM

11 FUNDS.—Notwithstanding any other provision of law, 

12 funds made available under this section may be used 

13 to pay the non-Federal matching share for other Fed14 eral program funds that are— 

15 ‘‘(A) expended in accordance with the re16 quirements of the Federal program relating to 

17 activities funded and populations served; and 

18 ‘‘(B) expended on a project that is eligible 

19 for assistance under this section.’’; and 

20 (F) in paragraph (5) (as redesignated by 

21 subparagraph (D)), by striking ‘‘80 percent’’ and 

22 inserting ‘‘the Federal share as determined in ac23 cordance with section 120’’; and 

24 (3) in subsection (h)— 
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1 (A) in paragraph (1), by inserting after 

2 subparagraph (B) the following: 

3 ‘‘(C) PLANNING AND ENVIRONMENTAL AS4 SESSMENT COSTS INCURRED PRIOR TO PROJECT

5 APPROVAL.—A project funded under any of sub6 paragraphs (A) through (H) of subsection (d)(2) 

7 may permit preapproval planning and environ8 mental compliance costs incurred not more than 

9 18 months before project approval to be credited 

10 toward the non-Federal share in accordance with 

11 subsection (f).’’; and 

12 (B) by striking paragraph (2) and inserting 

13 the following: 

14 ‘‘(2) WAIVER OF HIGHWAY PROGRAM REQUIRE15 MENTS.—A project funded under this section— 

16 ‘‘(A) is intended to enhance recreational op17 portunity; 

18 ‘‘(B) is not considered to be a highway 

19 project; and 

20 ‘‘(C) is not subject to— 

21 ‘‘(i) section 112, 114, 116, 134, 135, 

22 138, 217, or 301 of this title; or 

23 ‘‘(ii) section 303 of title 49.’’. 
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1 SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM. 

2 Subsection 103(c) of title 23, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(5) EXEMPTION OF INTERSTATE SYSTEM.— 

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

6 subparagraph (B), the Interstate System shall 

7 not be considered to be a historic site under sec8 tion 303 of title 49 or section 138 of this title, 

9 regardless of whether the Interstate System or 

10 portions of the Interstate System are listed on, or 

11 eligible for listing on, the National Register of 

12 Historic Places. 

13 ‘‘(B) INDIVIDUAL ELEMENTS.—A portion of 

14 the Interstate System that possesses an inde15 pendent feature of historic significance, such as 

16 a historic bridge or a highly significant engi17 neering feature, that would qualify independ18 ently for listing on the National Register of His19 toric Places, shall be considered to be a historic 

20 site under section 303 of title 49 or section 138 

21 of this title, as applicable.’’. 

22 SEC. 1605. STANDARDS. 

23 (a) IN GENERAL.—Section 109(a) of title 23, United 

24 States Code, is amended— 

25 (1) in paragraph (1), by striking ‘‘and’’ at the 

26 end; 
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1 (2) in paragraph (2), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(3) consider the preservation, historic, scenic, 

5 natural environmental, and community values.’’. 

6 (b) CONTEXT SENSITIVE DESIGN.—Section 109 of title 

7 23, United States Code, is amended by striking subsection 

8 (p) and inserting the following: 

9 ‘‘(p) CONTEXT SENSITIVE DESIGN.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall encour11 age States to design projects funded under this title 

12 that— 

13 ‘‘(A) allow for the preservation of environ14 mental, scenic, or historic values; 

15 ‘‘(B) ensure the safe use of the facility; 

16 ‘‘(C) provide for consideration of the context 

17 of the locality; 

18 ‘‘(D) encourage access for other modes of 

19 transportation; and 

20 ‘‘(E) comply with subsection (a). 

21 ‘‘(2) APPROVAL BY SECRETARY.—Notwith22 standing subsections (b) and (c), the Secretary may 

23 approve a project described in paragraph (1) for the 

24 National Highway System if the project is designed 

25 to achieve the criteria specified in that paragraph.’’. 
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1 SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES. 

2 Section 102 of title 23, United States Code, is amended 

3 by striking subsection (a) and inserting the following: 

4 ‘‘(a) HIGH OCCUPANCY VEHICLE LANE PASSENGER

5 REQUIREMENTS.— 

6 ‘‘(1) DEFINITIONS.—In this subsection: 

7 ‘‘(A) RESPONSIBLE AGENCY.—The term ‘re8 sponsible agency’ means— 

9 ‘‘(i) a State transportation depart10 ment; and 

11 ‘‘(ii) a local agency in a State that is 

12 responsible for transportation matters. 

13 ‘‘(B) SERIOUSLY DEGRADED.—The term ‘se14 riously degraded’, with respect to a high occu15 pancy vehicle lane, means, in the case of a high 

16 occupancy vehicle lane, the minimum average 

17 operating speed, performance threshold, and as18 sociated time period of the high occupancy vehi19 cle lane, calculated and determined jointly by all 

20 applicable responsible agencies and based on con21 ditions unique to the roadway, are unsatisfac22 tory. 

23 ‘‘(2) REQUIREMENTS.— 

24 ‘‘(A) IN GENERAL.—Subject to subpara25 graph (B), for each State, 1 or more responsible 

26 agencies shall establish the occupancy require-
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1 ments of vehicles operating on high occupancy 

2 vehicle lanes. 

3 ‘‘(B) MINIMUM NUMBER OF OCCUPANTS.— 

4 Except as provided in paragraph (3), an occu5 pancy requirement established under subpara6 graph (A) shall— 

7 ‘‘(i) require at least 2 occupants per 

8 vehicle for a vehicle operating on a high oc9 cupancy vehicle lane; and 

10 ‘‘(ii) in the case of a high occupancy 

11 vehicle lane that traverses an adjacent 

12 State, be established in consultation with 

13 the adjacent State. 

14 ‘‘(3) EXCEPTIONS TO HOV OCCUPANCY REQUIRE15 MENTS.— 

16 ‘‘(A) MOTORCYCLES.—For the purpose of 

17 this subsection, a motorcycle— 

18 ‘‘(i) shall not be considered to be a sin19 gle occupant vehicle; and 

20 ‘‘(ii) shall be allowed to use a high oc21 cupancy vehicle lane unless a responsible 

22 agency— 

23 ‘‘(I) certifies to the Secretary the 

24 use of a high occupancy vehicle lane by 
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1 a motorcycle would create a safety haz2 ard; and 

3 ‘‘(II) restricts that the use of the 

4 high occupancy vehicle lane by motor5 cycles. 

6 ‘‘(B) LOW EMISSION AND ENERGY-EFFI7 CIENT VEHICLES.— 

8 ‘‘(i) DEFINITION OF LOW EMISSION

9 AND ENERGY-EFFICIENT VEHICLE.—In this 

10 subparagraph, the term ‘low emission and 

11 energy-efficient vehicle’ means a vehicle that 

12 has been certified by the Administrator of 

13 the Environmental Protection Agency— 

14 ‘‘(I)(aa) to have a 45-mile per 

15 gallon or greater fuel economy highway 

16 rating; or 

17 ‘‘(bb) to qualify as an alternative 

18 fueled vehicle under section 301 of the 

19 Energy Policy Act of 1992 (42 U.S.C. 

20 13211); and 

21 ‘‘(II) as meeting Tier II emission 

22 level established in regulations promul23 gated by the Administrator of the En24 vironmental Protection Agency under 

25 section 202(i) of the Clean Air Act (42 
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1 U.S.C. 7521(i)) for that make and 

2 model year vehicle. 

3 ‘‘(ii) EXEMPTION FOR LOW EMISSION

4 AND ENERGY-EFFICIENT VEHICLES.—A re5 sponsible agency may permit qualifying low 

6 emission and energy-efficient vehicles that 

7 do not meet applicable occupancy require8 ments (as determined by the responsible 

9 agency) to use high occupancy vehicle lanes 

10 if the responsible agency— 

11 ‘‘(I) establishes a program that 

12 addresses how those qualifying low 

13 emission and energy-efficient vehicles 

14 are selected and certified; 

15 ‘‘(II) establishes requirements for 

16 labeling qualifying low emission and 

17 energy-efficient vehicles (including pro18 cedures for enforcing those require19 ments); 

20 ‘‘(III) continuously monitors, 

21 evaluates, and reports to the Secretary 

22 on performance; and 

23 ‘‘(IV) imposes such restrictions on 

24 the use on high occupancy vehicle lanes 

25 by vehicles that do not satisfy estab-
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1 lished occupancy requirements as are 

2 necessary to ensure that the perform3 ance of individual high occupancy ve4 hicle lanes, and the entire high occu5 pancy vehicle lane system, will not be6 come seriously degraded. 

7 ‘‘(C) TOLLING OF VEHICLES.— 

8 ‘‘(i) IN GENERAL.—A responsible agen9 cy may permit vehicles, in addition to the 

10 vehicles described in paragraphs (A), (B), 

11 and (D) that do not satisfy established occu12 pancy requirements, to use a high occu13 pancy vehicle lane only if the responsible 

14 agency charges those vehicles a toll. 

15 ‘‘(ii) APPLICABLE AUTHORITY.—In im16 posing a toll under clause (i), a responsible 

17 agency shall— 

18 ‘‘(I) be subject to section 129; 

19 ‘‘(II) establish a toll program that 

20 addresses ways in which motorists may 

21 enroll and participate in the program; 

22 ‘‘(III) develop, manage, and 

23 maintain a system that will automati24 cally collect the tolls from covered vehi25 cles; 
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1 ‘‘(IV) continuously monitor, 

2 evaluate, and report on performance of 

3 the system; 

4 ‘‘(V) establish such policies and 

5 procedures as are necessary— 

6 ‘‘(aa) to vary the toll charged 

7 in order to manage the demand 

8 for use of high occupancy vehicle 

9 lanes; and 

10 ‘‘(bb) to enforce violations; 

11 and 

12 ‘‘(VI) establish procedures to im13 pose such restrictions on the use of high 

14 occupancy vehicle lanes by vehicles that 

15 do not satisfy established occupancy re16 quirements as are necessary to ensure 

17 that the performance of individual 

18 high occupancy vehicle lanes, and the 

19 entire high occupancy vehicle lane sys20 tem, will not become seriously de21 graded. 

22 ‘‘(D) DESIGNATED PUBLIC TRANSPOR23 TATION VEHICLES.— 

24 ‘‘(i) DEFINITION OF DESIGNATED PUB25 LIC TRANSPORTATION VEHICLE.—In this 
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1 subparagraph, the term ‘designated public 

2 transportation vehicle’ means a vehicle 

3 that— 

4 ‘‘(I) provides designated public 

5 transportation (as defined in section 

6 221 of the Americans with Disabilities 

7 Act of 1990 (42 U.S.C. 12141)); and 

8 ‘‘(II)(aa) is owned or operated by 

9 a public entity; or 

10 ‘‘(bb) is operated under a contract 

11 with a public entity. 

12 ‘‘(ii) USE OF HIGH OCCUPANCY VEHI13 CLE LANES.—A responsible agency may 

14 permit designated public transportation ve15 hicles that do not satisfy established occu16 pancy requirements to use high occupancy 

17 vehicle lanes if the responsible agency— 

18 ‘‘(I) requires the clear and identi19 fiable labeling of each designated pub20 lic transportation vehicle operating 

21 under a contract with a public entity 

22 with the name of the public entity on 

23 all sides of the vehicle; 

24 ‘‘(II) continuously monitors, eval25 uates, and reports on performance of 
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1 those designated public transportation 

2 vehicles; and 

3 ‘‘(III) imposes such restrictions on 

4 the use of high occupancy vehicle lanes 

5 by designated public transportation ve6 hicles as are necessary to ensure that 

7 the performance of individual high oc8 cupancy vehicle lanes, and the entire 

9 high occupancy vehicle lane system, 

10 will not become seriously degraded. 

11 ‘‘(E) HOV LANE MANAGEMENT, OPERATION, 

12 AND MONITORING.— 

13 ‘‘(i) IN GENERAL.—A responsible agen14 cy that permits any of the exceptions speci15 fied in this paragraph shall comply with 

16 clauses (ii) and (iii). 

17 ‘‘(ii) PERFORMANCE MONITORING, 

18 EVALUATION, AND REPORTING.—A respon19 sible agency described in clause (i) shall es20 tablish, manage, and support a performance 

21 monitoring, evaluation, and reporting pro22 gram under which the responsible agency 

23 continuously monitors, assesses, and reports 

24 on the effects that any vehicle permitted to 

25 use a high occupancy vehicle lane under an 
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1 exception under this paragraph may have 

2 on the operation of— 

3 ‘‘(I) individual high occupancy 

4 vehicle lanes; and 

5 ‘‘(II) the entire high occupancy 

6 vehicle lane system. 

7 ‘‘(iii) OPERATION OF HOV LANE OR

8 SYSTEM.—A responsible agency described in 

9 clause (i) shall limit use of, or cease to use, 

10 any of the exceptions specified in this para11 graph if the presence of any vehicle per12 mitted to use a high occupancy vehicle lane 

13 under an exception under this paragraph 

14 seriously degrades the operation of— 

15 ‘‘(I) individual high occupancy 

16 vehicle lanes; and 

17 ‘‘(II) the entire high occupancy 

18 vehicle lane system.’’. 

19 SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN 

20 WALKWAYS. 

21 (a) IN GENERAL.—Section 217 of title 23, United 

22 States Code, is amended— 

23 (1) in subsection (a), by inserting ‘‘pedestrian 

24 and’’ after ‘‘safe’’; 
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1 (2) in subsection (e), by striking ‘‘bicycles’’ each 

2 place it appears and inserting ‘‘pedestrians or 

3 bicyclists’’; 

4 (3) by striking subsection (f) and inserting the 

5 following: 

6 ‘‘(f) FEDERAL SHARE.—The Federal share of the con7 struction of bicycle transportation facilities and pedestrian 

8 walkways, and for carrying out nonconstruction projects re9 lating to safe pedestrian and bicycle use, shall be deter10 mined in accordance with section 120(b).’’; 

11 (4) by redesignating subsection (j) as subsection 

12 (k); 

13 (5) by inserting after subsection (i) the following: 

14 ‘‘(j) BICYCLE AND PEDESTRIAN SAFETY GRANTS.— 

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

16 and make grants to a national, nonprofit organiza17 tion engaged in promoting bicycle and pedestrian 

18 safety— 

19 ‘‘(A) to operate a national bicycle and pe20 destrian clearinghouse; 

21 ‘‘(B) to develop information and edu22 cational programs regarding walking and bicy23 cling; and 

24 ‘‘(C) to disseminate techniques and strate25 gies for improving bicycle and pedestrian safety. 
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1 ‘‘(2) FUNDING.—The Secretary may use funds 

2 set aside under section 104(n) to carry out this sub3 section. 

4 ‘‘(3) APPLICABILITY OF TITLE 23.—Funds au5 thorized to be appropriated to carry out this sub6 section shall be available for obligation in the same 

7 manner as if the funds were apportioned under sec8 tion 104, except that the funds shall remain available 

9 until expended.’’; and 

10 (6) in subsection (k) (as redesignated by para11 graph (4))— 

12 (A) by redesignating paragraph (4) as 

13 paragraph (5); and 

14 (B) by inserting after paragraph (3) the fol15 lowing: 

16 ‘‘(4) SHARED USE PATH.—The term ‘shared use 

17 path’ means a multiuse trail or other path that is— 

18 ‘‘(A) physically separated from motorized 

19 vehicular traffic by an open space or barrier, ei20 ther within a highway right-of-way or within an 

21 independent right-of-way; and 

22 ‘‘(B) usable for transportation purposes (in23 cluding by pedestrians, bicyclists, skaters, eques24 trians, and other nonmotorized users).’’. 
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1 (b) RESERVATION OF FUNDS.—Section 104 of title 23, 

2 United States Code (as amended by section 1522), is 

3 amended by adding at the end the following: 

4 ‘‘(n) BICYCLE AND PEDESTRIAN SAFETY GRANTS.— 

5 On October 1 of each of fiscal years 2004 through 2009, 

6 the Secretary, after making the deductions authorized by 

7 subsections (a) and (f), shall set aside $500,000 of the re8 maining funds apportioned under subsection (b)(3) for use 

9 in carrying out the bicycle and pedestrian safety grant pro10 gram under section 217.’’. 

11 SEC. 1608. IDLING REDUCTION FACILITIES IN INTERSTATE 

12 RIGHTS-OF-WAY. 

13 Section 111 of title 23, United States Code, is amended 

14 by adding at the end the following: 

15 ‘‘(d) IDLING REDUCTION FACILITIES IN INTERSTATE

16 RIGHTS-OF-WAY.— 

17 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

18 (a), a State may— 

19 ‘‘(A) permit electrification or other idling 

20 reduction facilities and equipment, for use by 

21 motor vehicles used for commercial purposes, to 

22 be placed in rest and recreation areas, and in 

23 safety rest areas, constructed or located on 

24 rights-of-way of the Interstate System in the 
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1 State, so long as those idling reduction measures 

2 do not— 

3 ‘‘(i) reduce the existing number of des4 ignated truck parking spaces at any given 

5 rest or recreation area; or 

6 ‘‘(ii) preclude the use of those spaces by 

7 trucks employing alternative idle reduction 

8 technologies; and 

9 ‘‘(B) charge a fee, or permit the charging of 

10 a fee, for the use of those parking spaces actively 

11 providing power to a truck to reduce idling. 

12 ‘‘(2) PURPOSE.—The exclusive purpose of the fa13 cilities described in paragraph (1) (or similar tech14 nologies) shall be to enable operators of motor vehicles 

15 used for commercial purposes— 

16 ‘‘(A) to reduce idling of a truck while 

17 parked in the rest or recreation area; and 

18 ‘‘(B) to use installed or other equipment 

19 specifically designed to reduce idling of a truck, 

20 or provide alternative power for supporting driv21 er comfort, while parked.’’. 

22 SEC. 1609. TOLL PROGRAMS. 

23 (a) INTERSTATE SYSTEM RECONSTRUCTION AND RE24 HABILITATION PILOT PROGRAM.—Section 1216(b) of the 
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1 Transportation Equity Act for the 21st Century (23 U.S.C. 

2 129 note; 112 Stat. 212)— 

3 (1) is amended— 

4 (A) in paragraph (1)— 

5 (i) by striking ‘‘The Secretary’’ and 

6 inserting ‘‘Notwithstanding section 301, the 

7 Secretary’’; and 

8 (ii) by striking ‘‘that could not other9 wise be adequately maintained or function10 ally improved without the collection of 

11 tolls’’; 

12 (B) in paragraph (3), by striking subpara13 graph (C) and inserting the following: 

14 ‘‘(C) An analysis demonstrating that fi15 nancing the reconstruction or rehabilitation of 

16 the facility with the collection of tolls under this 

17 pilot program is the most efficient, economical, 

18 or expeditious way to advance the project.’’; 

19 (C) in paragraph (4)— 

20 (i) by striking subparagraph (A) and 

21 inserting the following: 

22 ‘‘(A) the State’s analysis showing that fi23 nancing the reconstruction or rehabilitation of a 

24 facility with the collection of tolls under the pilot 
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1 program is the most efficient, economical, or ex2 peditious way to advance the project;’’; 

3 (ii) by striking subparagraph (B) and 

4 inserting the following: 

5 ‘‘(B) the facility needs reconstruction or re6 habilitation, including major work that may re7 quire replacing sections of the existing facility on 

8 new alignment;’’; 

9 (iii) by striking subparagraph (C); 

10 and 

11 (iv) by redesignating subparagraphs 

12 (D) and (E) as subparagraphs (C) and (D), 

13 respectively; 

14 (2) is redesignated as subsection (d) of section 

15 129 of title 23, United States Code, and moved to ap16 pear at the end of that section; and 

17 (3) by striking ‘‘of title 23, United States Code’’ 

18 each place it appears. 

19 (b) FAST AND SENSIBLE TOLL (FAST) LANES PRO20 GRAM.—Section 129 of title 23, United States Code (as 

21 amended by subsection (a)(2)), is amended by adding at 

22 the end the following: 

23 ‘‘(e) FAST AND SENSIBLE TOLL (FAST) LANES PRO24 GRAM.— 

25 ‘‘(1) DEFINITIONS.—In this subsection: 
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1 ‘‘(A) ELIGIBLE TOLL FACILITY.—The term 

2 ‘eligible toll facility’ includes— 

3 ‘‘(i) a facility in existence on the date 

4 of enactment of this subsection that collects 

5 tolls; 

6 ‘‘(ii) a facility in existence on the date 

7 of enactment of this subsection, including a 

8 facility that serves high occupancy vehicles; 

9 ‘‘(iii) a facility modified or constructed 

10 after the date of enactment of this subsection 

11 to create additional tolled capacity (includ12 ing a facility constructed by a private enti13 ty or using private funds); and 

14 ‘‘(iv) in the case of a new lane added 

15 to a previously non-tolled facility, only the 

16 new lane. 

17 ‘‘(B) NONATTAINMENT AREA.—The term 

18 ‘nonattainment area’ has the meaning given the 

19 term in section 171 of the Clean Air Act (42 

20 U.S.C. 7501). 

21 ‘‘(2) ESTABLISHMENT.—Notwithstanding sec22 tions 129 and 301, the Secretary shall permit a State, 

23 public authority, or a public or private entity des24 ignated by a State, to collect a toll from motor vehi25 cles at an eligible toll facility for any highway, 
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1 bridge, or tunnel, including facilities on the Interstate 

2 System— 

3 ‘‘(A) to manage high levels of congestion; 

4 ‘‘(B) to reduce emissions in a nonattain5 ment area or maintenance area; or 

6 ‘‘(C) to finance the expansion of a highway, 

7 for the purpose of reducing traffic congestion, by 

8 constructing 1 or more additional lanes (includ9 ing bridge, tunnel, support, and other structures 

10 necessary for that construction) on the Interstate 

11 System. 

12 ‘‘(3) LIMITATION ON USE OF REVENUES.— 

13 ‘‘(A) USE.— 

14 ‘‘(i) IN GENERAL.—Toll revenues re15 ceived under paragraph (2) shall be used by 

16 a State, public authority, or private entity 

17 designated by a State, for— 

18 ‘‘(I) debt service for debt incurred 

19 on 1 or more highway or transit 

20 projects carried out under this title or 

21 title 49; 

22 ‘‘(II) a reasonable return on in23 vestment of any private financing; 

24 ‘‘(III) the costs necessary for 

25 proper operation and maintenance of 
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1 any facilities under paragraph (2) (in2 cluding reconstruction, resurfacing, 

3 restoration, and rehabilitation); or 

4 ‘‘(IV) if the State, public author5 ity, or private entity annually certifies 

6 that the tolled facility is being ade7 quately operated and maintained, any 

8 other purpose relating to a highway or 

9 transit project carried out under this 

10 title or title 49. 

11 ‘‘(B) REQUIREMENTS.— 

12 ‘‘(i) VARIABLE PRICE REQUIREMENT.— 

13 A facility that charges tolls under this sub14 section may establish a toll that varies in 

15 price according to time of day or level of 

16 traffic, as appropriate to manage congestion 

17 or improve air quality. 

18 ‘‘(ii) HOV VARIABLE PRICING RE19 QUIREMENT.—The Secretary shall require, 

20 for each high occupancy vehicle facility that 

21 charges tolls under this subsection, that the 

22 tolls vary in price according to time of day 

23 or level of traffic, as appropriate to manage 

24 congestion or improve air quality. 
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1 ‘‘(iii) HOV PASSENGER REQUIRE2 MENTS.—In addition to the exceptions to 

3 the high occupancy vehicle passenger re4 quirements established under section 

5 102(a)(2), a State may permit motor vehi6 cles with fewer than 2 occupants to operate 

7 in high occupancy vehicle lanes as part of 

8 a variable toll pricing program established 

9 under this subsection. 

10 ‘‘(C) AGREEMENT.— 

11 ‘‘(i) IN GENERAL.—Before the Sec12 retary may permit a facility to charge tolls 

13 under this subsection, the Secretary and the 

14 applicable State, public authority, or pri15 vate entity designated by a State shall enter 

16 into an agreement for each facility incor17 porating the conditions described in sub18 paragraphs (A) and (B). 

19 ‘‘(ii) TERMINATION.—An agreement 

20 under clause (i) shall terminate with respect 

21 to a facility upon the decision of the State, 

22 public authority, or private entity des23 ignated by a State to discontinue the vari24 able tolling program under this subsection 

25 for the facility. 
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1 ‘‘(iii) DEBT.— 

2 ‘‘(I) IN GENERAL.—If there is any 

3 debt outstanding on a facility at the 

4 time at which the decision is made to 

5 discontinue the program under this 

6 subsection with respect to the facility, 

7 the facility may continue to charge 

8 tolls in accordance with the terms of 

9 the agreement until such time as the 

10 debt is retired. 

11 ‘‘(II) NOTICE.—On retirement of 

12 the debt of a tolled facility, the appli13 cable State, public authority, or pri14 vate entity designated by a State shall 

15 provide notice to the public of that re16 tirement. 

17 ‘‘(D) LIMITATION ON FEDERAL SHARE.— 

18 The Federal share of the cost of a project on a 

19 facility tolled under this subsection, including a 

20 project to install the toll collection facility shall 

21 be a percentage, not to exceed 80 percent, deter22 mined by the applicable State. 

23 ‘‘(4) ELIGIBILITY.—To be eligible to participate 

24 in the program under this subsection, a State, public 
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1 authority, or private entity designated by a State 

2 shall provide to the Secretary— 

3 ‘‘(A) a description of the congestion or air 

4 quality problems sought to be addressed under 

5 the program; 

6 ‘‘(B) a description of— 

7 ‘‘(i) the goals sought to be achieved 

8 under the program; and 

9 ‘‘(ii) the performance measures that 

10 would be used to gauge the success made to11 ward reaching those goals; and 

12 ‘‘(C) such other information as the Sec13 retary may require. 

14 ‘‘(5) AUTOMATION.—Fees collected from motorists 

15 using a FAST lane shall be collected only through the 

16 use of noncash electronic technology that optimizes the 

17 free flow of traffic on the tolled facility. 

18 ‘‘(6) INTEROPERABILITY.— 

19 ‘‘(A) RULE.— 

20 ‘‘(i) IN GENERAL.—Not later than 180 

21 days after the date of enactment of this 

22 paragraph, the Secretary shall promulgate 

23 a final rule specifying requirements, stand24 ards, or performance specifications for auto-
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1 mated toll collection systems implemented 

2 under this section. 

3 ‘‘(ii) DEVELOPMENT.—In developing 

4 that rule, which shall be designed to maxi5 mize the interoperability of electronic collec6 tion systems, the Secretary shall, to the 

7 maximum extent practicable— 

8 ‘‘(I) seek to accelerate progress to9 ward the national goal of achieving a 

10 nationwide interoperable electronic toll 

11 collection system; 

12 ‘‘(II) take into account the use of 

13 noncash electronic technology currently 

14 deployed within an appropriate geo15 graphical area of travel and the 

16 noncash electronic technology likely to 

17 be in use within the next 5 years; and 

18 ‘‘(III) seek to minimize additional 

19 costs and maximize convenience to 

20 users of toll facility and to the toll fa21 cility owner or operator. 

22 ‘‘(B) FUTURE MODIFICATIONS.—As the state 

23 of technology progresses, the Secretary shall mod24 ify the rule promulgated under subparagraph 

25 (A), as appropriate. 
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1 ‘‘(7) REPORTING.— 

2 ‘‘(A) IN GENERAL.—The Secretary, in co3 operation with State and local agencies and 

4 other program participants and with oppor5 tunity for public comment, shall— 

6 ‘‘(i) develop and publish performance 

7 goals for each FAST lane project; 

8 ‘‘(ii) establish a program for regular 

9 monitoring and reporting on the achieve10 ment of performance goals, including— 

11 ‘‘(I) effects on travel, traffic, and 

12 air quality; 

13 ‘‘(II) distribution of benefits and 

14 burdens; 

15 ‘‘(III) use of alternative transpor16 tation modes; and 

17 ‘‘(IV) use of revenues to meet 

18 transportation or impact mitigation 

19 needs. 

20 ‘‘(B) REPORTS TO CONGRESS.—The Sec21 retary shall submit to the Committee on Envi22 ronment and Public Works of the Senate and the 

23 Committee on Transportation and Infrastructure 

24 of the House of Representatives— 
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1 ‘‘(i) not later than 1 year after the 

2 date of enactment of this subsection, and 

3 annually thereafter, a report that describes 

4 in detail the uses of funds under this sub5 section in accordance with paragraph 

6 (8)(D); and 

7 ‘‘(ii) not later than 3 years after the 

8 date of enactment of this subsection, and 

9 every 3 years thereafter, a report that de10 scribes any success of the program under 

11 this subsection in meeting congestion reduc12 tion and other performance goals established 

13 for FAST lane programs. 

14 ‘‘(8) FUNDING.— 

15 ‘‘(A) AUTHORIZATION OF APPROPRIA16 TIONS.—There is authorized to be appropriated 

17 from the Highway Trust Fund (other than the 

18 Mass Transit Account) to carry out pre-imple19 mentation studies and post-implementation eval20 uations of projects planned or implemented 

21 under this subsection $11,000,000 for each of fis22 cal years 2004 through 2009. 

23 ‘‘(B) AVAILABILITY.—Funds allocated by 

24 the Secretary to a State under this subsection 

25 shall remain available for obligation by the State 
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1 for a period of 3 years after the last day of the 

2 fiscal year for which the funds were authorized. 

3 ‘‘(C) CONTRACT AUTHORITY.—Funds au4 thorized to be appropriated under this para5 graph shall be available for obligation in the 

6 same manner as if the funds were apportioned 

7 under this chapter, except that the Federal share 

8 of the cost of any project carried out under this 

9 subsection and the availability of funds author10 ized by this paragraph shall be determined in 

11 accordance with this subsection. 

12 ‘‘(D) PROGRAM PROMOTION.—Notwith13 standing any other provision of this section, the 

14 Secretary shall use an amount not to exceed 2 

15 percent of the funds made available under sub16 paragraph (A)— 

17 ‘‘(i) to make grants to promote the 

18 purposes of the program under this sub19 section; 

20 ‘‘(ii) to provide technical support to 

21 State and local governments or other public 

22 or private entities involved in implementing 

23 or considering FAST lane programs; and 
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1 ‘‘(iii) to conduct research on variable 

2 pricing that will support State or local ef3 forts to initiate those pricing requirements. 

4 ‘‘(E) EFFECT ON OTHER APPORTIONMENTS

5 AND ALLOCATIONS.—Revenues collected from tolls 

6 established under this subsection shall not be 

7 taken into account in determining the apportion8 ments and allocations that any State or trans9 portation district within a State shall be entitled 

10 to receive under or in accordance with this chap11 ter. 

12 ‘‘(9) COMPLIANCE.—The Secretary shall ensure 

13 that any project or activity carried out under this 

14 section complies with requirements under section 106 

15 of this title and section 307 of title 49. 

16 ‘‘(10) VOLUNTARY USE.—Nothing in this sub17 section requires any highway user to use a FAST 

18 lane. 

19 ‘‘(11) ENVIRONMENTAL REQUIREMENTS.—Noth20 ing in this subsection affects any environmental re21 quirement applicable to the construction or operation 

22 of an eligible toll facility under this title or any other 

23 provision of law.’’. 

24 (c) CONFORMING AMENDMENTS.— 
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1 (1) IN GENERAL.—Section 1012 of the Inter2 modal Surface Transportation Efficiency Act (23 

3 U.S.C. 149 note; 105 Stat. 1938; 112 Stat. 211) is 

4 amended by striking subsection (b). 

5 (2) CONTINUATION OF PROGRAM.—Notwith6 standing the amendment made by paragraph (1), the 

7 Secretary shall monitor and allow any value pricing 

8 program established under a cooperative agreement in 

9 effect on the day before the date of enactment of this 

10 Act to continue. 

11 SEC. 1610. FEDERAL REFERENCE METHOD. 

12 (a) IN GENERAL.—Section 6102 of the Transportation 

13 Equity Act for the 21st Century (42 U.S.C. 7407 note; 112 

14 Stat. 464) is amended by striking subsection (e) and insert15 ing the following: 

16 ‘‘(e) FIELD STUDY.—Not later than 2 years after the 

17 date of enactment of the Safe, Accountable, Flexible, and 

18 Efficient Transportation Equity Act of 2004, the Adminis19 trator shall— 

20 ‘‘(1) conduct a field study of the ability of the 

21 PM2.5 Federal Reference Method to differentiate those 

22 particles that are larger than 2.5 micrometers in di23 ameter; 

24 ‘‘(2) develop a Federal reference method to meas25 ure directly particles that are larger than 2.5 mi-
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1 crometers in diameter without reliance on subtracting 

2 from coarse particle measurements those particles that 

3 are equal to or smaller than 2.5 micrometers in di4 ameter; 

5 ‘‘(3) develop a method of measuring the composi6 tion of coarse particles; and 

7 ‘‘(4) submit a report on the study and respon8 sibilities of the Administrator under paragraphs (1) 

9 through (3) to— 

10 ‘‘(A) the Committee on Commerce of the 

11 House of Representatives; and 

12 ‘‘(B) the Committee on Environment and 

13 Public Works of the Senate.’’. 

14 SEC. 1611. ADDITION OF PARTICULATE MATTER AREAS TO 

15 CMAQ. 

16 Section 104(b)(2) of title 23, United States Code, is 

17 amended— 

18 (1) in subparagraph (B)— 

19 (A) in the matter preceding clause (i), by 

20 striking ‘‘ozone or carbon monoxide’’ and insert21 ing ‘‘ozone, carbon monoxide, or fine particulate 

22 matter (PM2.5)’’; 

23 (B) by striking clause (i) and inserting the 

24 following: 
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1 ‘‘(i) 1.0, if at the time of apportion2 ment, the area is a maintenance area;’’; 

3 (C) in clause (vi), by striking ‘‘or’’ after the 

4 semicolon; and 

5 (D) in clause (vii)— 

6 (i) by striking ‘‘area as described in 

7 section 149(b) for ozone,’’ and inserting 

8 ‘‘area for ozone (as described in section 

9 149(b) or for PM–2.5’’; and 

10 (ii) by striking the period at the end 

11 and inserting a semicolon; 

12 (2) by adding at the end the following: 

13 ‘‘(viii) 1.0 if, at the time of apportion14 ment, any county that is not designated as 

15 a nonattainment or maintenance area 

16 under the 1-hour ozone standard is des17 ignated as nonattainment under the 8-hour 

18 ozone standard; or 

19 ‘‘(ix) 1.2 if, at the time of apportion20 ment, the area is not a nonattainment or 

21 maintenance area as described in section 

22 149(b) for ozone or carbon monoxide, but is 

23 an area designated nonattainment under 

24 the PM–2.5 standard.’’; 
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1 (3) by striking subparagraph (C) and inserting 

2 the following: 

3 ‘‘(C) ADDITIONAL ADJUSTMENT FOR CAR4 BON MONOXIDE AREAS.—If, in addition to being 

5 designated as a nonattainment or maintenance 

6 area for ozone as described in section 149(b), any 

7 county within the area was also classified under 

8 subpart 3 of part D of title I of the Clean Air 

9 Act (42 U.S.C. 7512 et seq.) as a nonattainment 

10 or maintenance area described in section 149(b) 

11 for carbon monoxide, the weighted nonattain12 ment or maintenance area population of the 

13 county, as determined under clauses (i) through 

14 (vi) or clause (viii) of subparagraph (B), shall be 

15 further multiplied by a factor of 1.2.’’; 

16 (4) by redesignating subparagraph (D) and (E) 

17 as subparagraphs (E) and (F) respectively; and 

18 (5) by inserting after subparagraph (C) the fol19 lowing: 

20 ‘‘(D) ADDITIONAL ADJUSTMENT FOR PM 2.5

21 AREAS.—If, in addition to being designated as a 

22 nonattainment or maintenance area for ozone or 

23 carbon monoxide, or both as described in section 

24 149(b), any county within the area was also des25 ignated under the PM–2.5 standard as a non-
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1 attainment or maintenance area, the weighted 

2 nonattainment or maintenance area population 

3 of those counties shall be further multiplied by a 

4 factor of 1.2.’’. 

5 SEC. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS. 

6 (a) ELIGIBLE PROJECTS.—Section 149(b) of title 23, 

7 United States Code, is amended— 

8 (1) in paragraph (4), by striking ‘‘or’’ at the 

9 end; 

10 (2) in paragraph (5), by striking the period at 

11 the end and inserting a semicolon; and 

12 (3) by adding at the end the following: 

13 ‘‘(6) if the project or program is for the purchase 

14 of alternative fuel (as defined in section 301 of the 

15 Energy Policy Act of 1992 (42 U.S.C. 13211)) or bio16 diesel; or 

17 ‘‘(7) if the project or program involves the pur18 chase of integrated, interoperable emergency commu19 nications equipment.’’. 

20 (b) STATES RECEIVING MINIMUM APPORTIONMENT.— 

21 Section 149(c) of title 23, United States Code, is amended— 

22 (1) in paragraph (1), by striking ‘‘for any 

23 project eligible under the surface transportation pro24 gram under section 133.’’ and inserting the following: 

25 ‘‘for any project in the State that— 
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1 ‘‘(A) would otherwise be eligible under this 

2 section as if the project were carried out in a 

3 nonattainment or maintenance area; or 

4 ‘‘(B) is eligible under the surface transpor5 tation program under section 133.’’; and 

6 (2) in paragraph (2), by striking ‘‘for any 

7 project in the State eligible under section 133.’’ and 

8 inserting the following: ‘‘for any project in the State 

9 that— 

10 ‘‘(A) would otherwise be eligible under this 

11 section as if the project were carried out in a 

12 nonattainment or maintenance area; or 

13 ‘‘(B) is eligible under the surface transpor14 tation program under section 133.’’. 

15 (c) RESPONSIBILITY OF STATES.— 

16 (1) IN GENERAL.—Each State shall be respon17 sible for ensuring that subrecipients of Federal funds 

18 within the State under section 149 of title 23, United 

19 States Code, have emission reduction strategies for 

20 fleets that are— 

21 (A) used in construction projects located in 

22 nonattainment and maintenance areas; and 

23 (B) funded under title 23, United States 

24 Code. 
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1 (2) EMISSION REDUCTION STRATEGIES.—The 

2 Administrator of the Environmental Protection Agen3 cy, in consultation with the Secretary, shall develop 

4 a nonbinding list of emission reduction strategies and 

5 supporting technical information for each strategy, 

6 including— 

7 (A) contract preferences; 

8 (B) requirements for the use of anti-idling 

9 equipment; 

10 (C) diesel retrofits; and 

11 (D) such other matters as the Administrator 

12 of the Environmental Protection Agency, in con13 sultation with the Secretary, determine to be ap14 propriate. 

15 (3) USE OF CMAQ FUNDS.—A State may use 

16 funds made available under this title and title 23, 

17 United States Code, for the congestion mitigation and 

18 air quality program under section 149 of title 23, 

19 United States Code, to ensure the deployment of the 

20 emission reduction strategies described in paragraph 

21 (1). 

22 SEC. 1613. IMPROVED INTERAGENCY CONSULTATION. 

23 Section 149 of title 23, United States Code, is amended 

24 by adding at the end the following: 
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1 ‘‘(g) INTERAGENCY CONSULTATION.—The Secretary 

2 shall encourage States and metropolitan planning organi3 zations to consult with State and local air quality agencies 

4 in nonattainment and maintenance areas on the estimated 

5 emission reductions from proposed congestion mitigation 

6 and air quality improvement programs and projects.’’. 

7 SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ 

8 PROJECTS. 

9 Section 149 of title 23, United States Code, is amended 

10 by adding at the end the following: 

11 ‘‘(h) EVALUATION AND ASSESSMENT OF PROJECTS.— 

12 ‘‘(1) IN GENERAL.—The Secretary, in consulta13 tion with the Administrator of the Environmental 

14 Protection Agency, shall evaluate and assess a rep15 resentative sample of projects funded under the con16 gestion mitigation and air quality program to— 

17 ‘‘(A) determine the direct and indirect im18 pact of the projects on air quality and congestion 

19 levels; and 

20 ‘‘(B) ensure the effective implementation of 

21 the program. 

22 ‘‘(2) DATABASE.—Using appropriate assessments 

23 of projects funded under the congestion mitigation 

24 and air quality program and results from other re25 search, the Secretary shall maintain and disseminate 
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1 a cumulative database describing the impacts of the 

2 projects. 

3 ‘‘(3) CONSIDERATION.—The Secretary, in con4 sultation with the Administrator of the Environ5 mental Protection Agency, shall consider the rec6 ommendations and findings of the report submitted to 

7 Congress under section 1110(e) of the Transportation 

8 Equity Act for the 21st Century (112 Stat. 144), in9 cluding recommendations and findings that would 

10 improve the operation and evaluation of the conges11 tion mitigation and air quality improvement pro12 gram under section 149.’’. 

13 SEC. 1615. SYNCHRONIZED PLANNING AND CONFORMITY 

14 TIMELINES, REQUIREMENTS, AND HORIZON. 

15 (a) METROPOLITAN PLANNING.— 

16 (1) DEVELOPMENT OF LONG-RANGE TRANSPOR17 TATION PLAN.—Section 134(g)(1) of title 23, United 

18 States Code, is amended by striking ‘‘periodically, ac19 cording to a schedule that the Secretary determines to 

20 be appropriate,’’ and inserting ‘‘every 4 years (or 

21 more frequently, in a case in which the metropolitan 

22 planning organization elects to update a transpor23 tation plan more frequently) in areas designated as 

24 nonattainment, as defined in section 107(d) of the 

25 Clean Air Act (42 U.S.C. 7407(d)), and in areas that 
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1 were nonattainment that have been redesignated to 

2 attainment in accordance with section 107(d)(3) of 

3 that Act (42 U.S.C. 7407(d)(3)), with a maintenance 

4 plan under section 175A of that Act (42 U.S.C. 

5 7505a), or every 5 years (or more frequently, in a 

6 case in which the metropolitan planning organization 

7 elects to update a transportation plan more fre8 quently) in areas designated as attainment (as de9 fined in section 107(d) of that Act (42 U.S.C. 

10 7407(d))),’’. 

11 (2) METROPOLITAN TRANSPORTATION IMPROVE12 MENT PROGRAM.—Section 134(h) of title 23, United 

13 States Code, is amended— 

14 (A) in paragraph (1)(D), by striking ‘‘2 

15 years’’ and inserting ‘‘4 years’’; and 

16 (B) in paragraph (2)(A), by striking ‘‘3- 

17 year’’ and inserting ‘‘4-year’’. 

18 (3) STATEWIDE TRANSPORTATION IMPROVEMENT

19 PROGRAM.—Section 135(f)(1)(A) of title 23, United 

20 States Code, is amended by inserting after ‘‘program’’ 

21 the following: ‘‘(which program shall cover a period 

22 of 4 years and be updated every 4 years)’’. 

23 (4) FINAL REGULATIONS.—Not later than 18 

24 months after the date of enactment of the Safe, Ac25 countable, Flexible, and Efficient Transportation Eq-
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1 uity Act of 2004, the Secretary shall promulgate regu2 lations that are consistent with the amendments made 

3 by this subsection. 

4 (b) SYNCHRONIZED CONFORMITY DETERMINATION.— 

5 Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) 

6 is amended— 

7 (1) in paragraph (2)— 

8 (A) by striking ‘‘(2) Any transportation 

9 plan’’ and inserting the following: 

10 ‘‘(2) TRANSPORTATION PLANS AND PROGRAMS.— 

11 Any transportation plan’’; 

12 (B) in subparagraph (C)(iii), by striking 

13 the period at the end and inserting a semicolon; 

14 (C) in subparagraph (D)— 

15 (i) by striking ‘‘Any project’’ and in16 serting ‘‘any transportation project’’; and 

17 (ii) by striking the period at the end 

18 and inserting ‘‘; and’’; and 

19 (D) by adding at the end the following: 

20 ‘‘(E) the appropriate metropolitan planning 

21 organization shall redetermine conformity of ex22 isting transportation plans and programs not 

23 later than 2 years after the date on which the 

24 Administrator— 
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1 ‘‘(i) finds a motor vehicle emissions 

2 budget to be adequate in accordance with 

3 section 93.118(e)(4) of title 40, Code of Fed4 eral Regulations (as in effect on October 1, 

5 2003); 

6 ‘‘(ii) approves an implementation plan 

7 that establishes a motor vehicle emissions 

8 budget, if that budget has not yet been used 

9 in a conformity determination prior to ap10 proval; or 

11 ‘‘(iii) promulgates an implementation 

12 plan that establishes or revises a motor ve13 hicle emissions budget.’’; 

14 (2) in paragraph (4)(B)(ii), by striking ‘‘but in 

15 no case shall such determinations for transportation 

16 plans and programs be less frequent than every 3 

17 years; and’’ and inserting ‘‘but the frequency for mak18 ing conformity determinations on updated transpor19 tation plans and programs shall be every 4 years, ex20 cept in a case in which— 

21 ‘‘(I) the metropolitan planning 

22 organization elects to update a trans23 portation plan or program more fre24 quently; or 
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1 ‘‘(II) the metropolitan planning 

2 organization is required to determine 

3 conformity in accordance with para4 graph (2)(E); and’’; 

5 (3) in paragraph (4)(B)— 

6 (A) in clause (ii), by striking ‘‘and’’ at the 

7 end; 

8 (B) in clause (iii), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(iv) address the effects of the most re12 cent population, economic, employment, 

13 travel, transit ridership, congestion, and in14 duced travel demand information in the de15 velopment and application of the latest 

16 travel and emissions models.’’; 

17 (4) by adding at the end the following: 

18 ‘‘(7) CONFORMITY HORIZON FOR TRANSPOR19 TATION PLANS.— 

20 ‘‘(A) IN GENERAL.—For the purposes of this 

21 section, a transportation plan in a nonattain22 ment or maintenance area shall be considered to 

23 be a transportation plan or a portion of a trans24 portation plan that extends for the longest of the 

25 following periods: 
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1 ‘‘(i) The first 10-year period of any 

2 such transportation plan. 

3 ‘‘(ii) The latest year in the implemen4 tation plan applicable to the area that con5 tains a motor vehicle emission budget. 

6 ‘‘(iii) The year after the completion 

7 date of a regionally significant project, if 

8 the project requires approval before the sub9 sequent conformity determination. 

10 ‘‘(B) EXCEPTION.—In a case in which an 

11 area has a revision to an implementation plan 

12 under section 175A(b) and the Administrator 

13 has found the motor vehicle emissions budgets 

14 from that revision to be adequate in accordance 

15 with section 93.118(e)(4) of title 40, Code of Fed16 eral Regulations (as in effect on October 1, 

17 2003), or has approved the revision, the trans18 portation plan shall be considered to be a trans19 portation plan or portion of a transportation 

20 plan that extends through the last year of the im21 plementation plan required under section 

22 175A(b). 

23 ‘‘(8) DEFINITIONS.—In this subsection: 

24 ‘‘(A) REGIONALLY SIGNIFICANT PROJECT.— 
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1 ‘‘(i) IN GENERAL.—The term ‘region2 ally significant project’ means a transpor3 tation project that is on a facility that 

4 serves a regional transportation need, in5 cluding— 

6 ‘‘(I) access to and from the area 

7 outside of the region; 

8 ‘‘(II) access to and from major 

9 planned developments, including new 

10 retail malls, sports complexes, or trans11 portation terminals; and 

12 ‘‘(III) most transportation termi13 nals. 

14 ‘‘(ii) PRINCIPAL ARTERIALS AND FIXED

15 GUIDEWAYS.—The term ‘regionally signifi16 cant project’ includes, at a minimum— 

17 ‘‘(I) all principal arterial high18 ways; and 

19 ‘‘(II) all fixed guideway transit 

20 facilities that offer an alternative to re21 gional highway travel. 

22 ‘‘(iii) ADDITIONAL PROJECTS.—The 

23 interagency consultation process and proce24 dures described in section 93.105(c) of title 

25 40, Code of Federal Regulations (as in effect 
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1 on October 1, 2003), shall be used to make 

2 determinations as to whether minor arterial 

3 highways and other transportation projects 

4 should be considered ‘regionally significant 

5 projects’. 

6 ‘‘(iv) EXCLUSIONS.—The term ‘region7 ally significant project’ does not include 

8 any project of a type listed in sections 

9 93.126 or 127 of title 40, Code of Federal 

10 Regulations (as in effect on October 1, 

11 2003). 

12 ‘‘(B) SIGNIFICANT REVISION.—The term 

13 ‘significant revision’ means— 

14 ‘‘(i) with respect to a regionally sig15 nificant project, a significant change in de16 sign concept or scope to the project; and 

17 ‘‘(ii) with respect to any other kind of 

18 project, a change that converts a project 

19 that is not a regionally significant project 

20 into a regionally significant project. 

21 ‘‘(C) TRANSPORTATION PROJECT.—The term 

22 ‘transportation project’ includes only a project 

23 that is— 

24 ‘‘(i) a regionally significant project; or 
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1 ‘‘(ii) a project that makes a significant 

2 revision to an existing project.’’; and 

3 (5) in the matter following paragraph (3)(B), by 

4 inserting ‘‘transportation’’ before ‘‘project’’ each place 

5 it appears. 

6 SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS. 

7 Section 176(c) of the Clean Air Act (42 U.S.C. 

8 7506(c)) is amended by striking paragraph (3) and insert9 ing the following: 

10 ‘‘(3) METHODS OF CONFORMITY DETERMINATION

11 BEFORE BUDGET IS AVAILABLE.— 

12 ‘‘(A) IN GENERAL.—Until such time as a 

13 motor vehicle emission budget from an imple14 mentation plan submitted for a national ambi15 ent air quality standard is determined to be ade16 quate in accordance with section 93.118(e)(4) of 

17 title 40, Code of Federal Regulations (as in effect 

18 on October 1, 2003), or the submitted implemen19 tation plan is approved, conformity of such a 

20 plan, program, or project shall be demonstrated, 

21 in accordance with clauses (i) and (ii) and as se22 lected through the consultation process required 

23 under paragraph (4)(D)(i), with— 

24 ‘‘(i) a motor vehicle emission budget 

25 that has been found adequate in accordance 
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1 with section 93.118(e)(4) of title 40, Code of 

2 Federal Regulations (as in effect on October 

3 1, 2003), or that has been approved, from 

4 an implementation plan for the most recent 

5 prior applicable national ambient air qual6 ity standard addressing the same pollutant; 

7 or 

8 ‘‘(ii) other such tests as the Adminis9 trator shall determine to ensure that— 

10 ‘‘(I) the transportation plan or 

11 program— 

12 ‘‘(aa) is consistent with the 

13 most recent estimates of mobile 

14 source emissions; 

15 ‘‘(bb) provides for the expedi16 tious implementation of transpor17 tation control measures in the ap18 plicable implementation plan; 

19 and 

20 ‘‘(cc) with respect to an ozone 

21 or carbon monoxide nonattain22 ment area, contributes to annual 

23 emissions reductions consistent 

24 with sections 182(b)(1) and 

25 187(a)(7); and 
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1 ‘‘(II) the transportation project— 

2 ‘‘(aa) comes from a con3 forming transportation plan and 

4 program described in this sub5 paragraph; and 

6 ‘‘(bb) in a carbon monoxide 

7 nonattainment area, eliminates or 

8 reduces the severity and number 

9 of violations of the carbon mon10 oxide standards in the area sub11 stantially affected by the project. 

12 ‘‘(B) DETERMINATION FOR A TRANSPOR13 TATION PROJECT IN A CARBON MONOXIDE NON14 ATTAINMENT AREA.—A determination under sub15 paragraph (A)(ii)(II)(bb) may be made as part 

16 of either the conformity determination for the 

17 transportation program or for the individual 

18 project taken as a whole during the environ19 mental review phase of project development.’’. 

20 SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVE21 MENTS. 

22 Section 176(c) of the Clean Air Act (42 U.S.C. 

23 7506(c)) (as amended by section 1615(b)(4)) is amended— 

24 (1) by redesignating paragraph (8) as para25 graph (9); and 
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1 (2) by inserting after paragraph (7) the fol2 lowing: 

3 ‘‘(8) SUBSTITUTION FOR TRANSPORTATION CON4 TROL MEASURES.— 

5 ‘‘(A) IN GENERAL.—Transportation control 

6 measures that are specified in an implementa7 tion plan may be replaced or added to the imple8 mentation plan with alternate or additional 

9 transportation control measures if— 

10 ‘‘(i) the substitute measures achieve 

11 equivalent or greater emissions reductions 

12 than the control measure to be replaced, as 

13 demonstrated with an analysis that is con14 sistent with the current methodology used 

15 for evaluating the replaced control measure 

16 in the implementation plan; 

17 ‘‘(ii) the substitute control measures 

18 are implemented— 

19 ‘‘(I) in accordance with a schedule 

20 that is consistent with the schedule 

21 provided for control measures in the 

22 implementation plan; or 

23 ‘‘(II) if the implementation plan 

24 date for implementation of the control 

25 measure to be replaced has passed, as 
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1 soon as practicable after the implemen2 tation plan date but not later than the 

3 date on which emission reductions are 

4 necessary to achieve the purpose of the 

5 implementation plan; 

6 ‘‘(iii) the substitute and additional 

7 control measures are accompanied with evi8 dence of adequate personnel, funding, and 

9 authority under State or local law to imple10 ment, monitor, and enforce the control 

11 measures; 

12 ‘‘(iv) the substitute and additional con13 trol measures were developed through a col14 laborative process that included— 

15 ‘‘(I) participation by representa16 tives of all affected jurisdictions (in17 cluding local air pollution control 

18 agencies, the State air pollution control 

19 agency, and State and local transpor20 tation agencies); 

21 ‘‘(II) consultation with the Ad22 ministrator; and 

23 ‘‘(III) reasonable public notice 

24 and opportunity for comment; and 
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1 ‘‘(v) the metropolitan planning organi2 zation, State air pollution control agency, 

3 and the Administrator concur with the 

4 equivalency of the substitute or additional 

5 control measures. 

6 ‘‘(B) ADOPTION.—After carrying out sub7 paragraph (A), a State shall adopt the substitute 

8 or additional transportation control measure in 

9 the applicable implementation plan. 

10 ‘‘(C) NO REQUIREMENT FOR EXPRESS PER11 MISSION.—The substitution or addition of a 

12 transportation control measure in accordance 

13 with this paragraph shall not be contingent on 

14 there being any provision in the implementation 

15 plan that expressly permits such a substitution 

16 or addition. 

17 ‘‘(D) NO REQUIREMENT FOR NEW CON18 FORMITY DETERMINATION.—The substitution or 

19 addition of a transportation control measure in 

20 accordance with this paragraph shall not re21 quire— 

22 ‘‘(i) a new conformity determination 

23 for the transportation plan; or 

24 ‘‘(ii) a revision of the implementation 

25 plan. 
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1 ‘‘(E) CONTINUATION OF CONTROL MEASURE

2 BEING REPLACED.—A control measure that is 

3 being replaced by a substitute control measure 

4 under this paragraph shall remain in effect until 

5 the substitute control measure is adopted by the 

6 State pursuant to subparagraph (B). 

7 ‘‘(F) EFFECT OF ADOPTION.—Adoption of a 

8 substitute control measure shall constitute rescis9 sion of the previously applicable control meas10 ure.’’. 

11 SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED 

12 BY EXCEPTIONAL EVENTS. 

13 (a) IN GENERAL.—Section 319 of the Clean Air Act 

14 (42 U.S.C. 7619) is amended— 

15 (1) by striking the section heading and all that 

16 follows through ‘‘after notice and opportunity for pub17 lic hearing’’ and inserting the following: 

18 ‘‘SEC. 319. AIR QUALITY MONITORING. 

19 ‘‘(a) IN GENERAL.—After notice and opportunity for 

20 public hearing’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(b) AIR QUALITY MONITORING DATA INFLUENCED BY

23 EXCEPTIONAL EVENTS.— 

24 ‘‘(1) DEFINITION OF EXCEPTIONAL EVENT.—In 

25 this section: 
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1 ‘‘(A) IN GENERAL.—The term ‘exceptional 

2 event’ means an event that— 

3 ‘‘(i) affects air quality; 

4 ‘‘(ii) is not reasonably controllable or 

5 preventable; 

6 ‘‘(iii) is— 

7 ‘‘(I) a natural event; or 

8 ‘‘(II) an event caused by human 

9 activity that is unlikely to recur at a 

10 particular location; and 

11 ‘‘(iv) is determined by the Adminis12 trator through the process established in the 

13 regulations promulgated under paragraph 

14 (2) to be an exceptional event. 

15 ‘‘(B) EXCLUSIONS.—The term ‘exceptional 

16 event’ does not include— 

17 ‘‘(i) stagnation of air masses or mete18 orological inversions; 

19 ‘‘(ii) a meteorological event involving 

20 high temperatures or lack of precipitation; 

21 or 

22 ‘‘(iii) air pollution relating to source 

23 noncompliance. 

24 ‘‘(2) REGULATIONS.— 
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1 ‘‘(A) PROPOSED REGULATIONS.—Not later 

2 than March 1, 2005, after consultation with Fed3 eral land managers and State air pollution con4 trol agencies, the Administrator shall publish in 

5 the Federal Register proposed regulations gov6 erning the review and handling of air quality 

7 monitoring data influenced by exceptional 

8 events. 

9 ‘‘(B) FINAL REGULATIONS.—Not later than 

10 1 year after the date on which the Administrator 

11 publishes proposed regulations under subpara12 graph (A), and after providing an opportunity 

13 for interested persons to make oral presentations 

14 of views, data, and arguments regarding the pro15 posed regulations, the Administrator shall pro16 mulgate final regulations governing the review 

17 and handling or air quality monitoring data in18 fluenced by an exceptional event that are con19 sistent with paragraph (3). 

20 ‘‘(3) PRINCIPLES AND REQUIREMENTS.— 

21 ‘‘(A) PRINCIPLES.—In promulgating regu22 lations under this section, the Administrator 

23 shall follow— 

24 ‘‘(i) the principle that protection of 

25 public health is the highest priority; 
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1 ‘‘(ii) the principle that timely informa2 tion should be provided to the public in any 

3 case in which the air quality is unhealthy; 

4 ‘‘(iii) the principle that all ambient 

5 air quality data should be included in a 

6 timely manner, an appropriate Federal air 

7 quality database that is accessible to the 

8 public; 

9 ‘‘(iv) the principle that each State 

10 must take necessary measures to safeguard 

11 public health regardless of the source of the 

12 air pollution; and 

13 ‘‘(v) the principle that air quality data 

14 should be carefully screened to ensure that 

15 events not likely to recur are represented ac16 curately in all monitoring data and anal17 yses. 

18 ‘‘(B) REQUIREMENTS.—Regulations pro19 mulgated under this section shall, at a min20 imum, provide that— 

21 ‘‘(i) the occurrence of an exceptional 

22 event must be demonstrated by reliable, ac23 curate data that is promptly produced and 

24 provided by Federal, State, or local govern25 ment agencies; 
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1 ‘‘(ii) a clear causal relationship must 

2 exist between the measured exceedances of a 

3 national ambient air quality standard and 

4 the exceptional event to demonstrate that 

5 the exceptional event caused a specific air 

6 pollution concentration at a particular air 

7 quality monitoring location; 

8 ‘‘(iii) there is a public process for de9 termining whether an event is exceptional; 

10 and 

11 ‘‘(iv) there are criteria and procedures 

12 for the Governor of a State to petition the 

13 Administrator to exclude air quality moni14 toring data that is directly due to excep15 tional events from use in determinations by 

16 the Environmental Protection Agency with 

17 respect to exceedances or violations of the 

18 national ambient air quality standards. 

19 ‘‘(4) INTERIM PROVISION.—Until the effective 

20 date of a regulation promulgated under paragraph 

21 (2), the following guidance issued by the Adminis22 trator shall continue to apply: 

23 ‘‘(A) Guidance on the identification and use 

24 of air quality data affected by exceptional events 

25 (July 1986). 
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1 ‘‘(B) Areas affected by PM–10 natural 

2 events, May 30, 1996. 

3 ‘‘(C) Appendices I, K, and N to part 50 of 

4 title 40, Code of Federal Regulations.’’. 

5 SEC. 1619. CONFORMING AMENDMENTS. 

6 Section 176(c)(4) of the Clean Air Act (42 U.S.C. 

7 7506(c)(4) is amended— 

8 (1) by redesignating subparagraphs (B) through 

9 (D) as subparagraphs (D) through (F), respectively; 

10 (2) by striking ‘‘(4)(A) No later than one year 

11 after the date of enactment of the Clean Air Act 

12 Amendments of 1990, the Administrator shall pro13 mulgate’’ and inserting the following: 

14 ‘‘(4) CRITERIA AND PROCEDURES FOR DETER15 MINING CONFORMITY.— 

16 ‘‘(A) IN GENERAL.—The Administrator 

17 shall promulgate, and periodically update,’’; 

18 (3) in subparagraph (A)— 

19 (A) in the second sentence, by striking ‘‘No 

20 later than one year after such date of enactment, 

21 the Administrator, with the concurrence of the 

22 Secretary of Transportation, shall promulgate’’ 

23 and inserting the following: 

24 ‘‘(B) TRANSPORTATION PLANS, PROGRAMS, 

25 AND PROJECTS.—The Administrator, with the 
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1 concurrence of the Secretary of Transportation, 

2 shall promulgate, and periodically update,’’; and 

3 (B) in the third sentence, by striking ‘‘A 

4 suit’’ and inserting the following: 

5 ‘‘(C) CIVIL ACTION TO COMPEL PROMULGA6 TION.—A civil action’’; and 

7 (4) by striking subparagraph (E) (as redesig8 nated by paragraph (1)) and inserting the following: 

9 ‘‘(E) INCLUSION OF CRITERIA AND PROCE10 DURES IN SIP.—Not later than 2 years after the 

11 date of enactment of the Safe, Accountable, Flexi12 ble, and Efficient Transportation Equity Act of 

13 2004, the procedures under subparagraph (A) 

14 shall include a requirement that each State in15 clude in the State implementation plan criteria 

16 and procedures for consultation in accordance 

17 with the Administrator’s criteria and procedures 

18 for consultation required by subparagraph 

19 (D)(i).’’. 

20 SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGA21 TION PROGRAM. 

22 (a) HIGHWAY STORMWATER MITIGATION PROJECTS.— 

23 Section 133(d) of title 23, United States Code (as amended 

24 by section 1401(a)(2)(B)), is amended by adding at the end 

25 the following: 
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1 ‘‘(5) HIGHWAY STORMWATER DISCHARGE MITI2 GATION PROJECTS.—Of the amount apportioned to a 

3 State under section 104(b)(3) for a fiscal year, 2 per4 cent shall be available only for projects and activities 

5 carried out under section 167.’’. 

6 (b) HIGHWAY STORMWATER DISCHARGE MITIGATION

7 PROGRAM.—Subchapter I of chapter 1 of title 23, United 

8 States Code (as amended by section 1601(a)), is amended 

9 by adding at the end the following: 

10 ‘‘§ 167. Highway stormwater discharge mitigation pro11 gram 

12 ‘‘(a) DEFINITIONS.—In this section: 

13 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis14 trator’ means the Administrator of the Environ15 mental Protection Agency. 

16 ‘‘(2) ELIGIBLE MITIGATION PROJECT.—The term 

17 ‘eligible mitigation project’ means a practice or tech18 nique that— 

19 ‘‘(A) improves stormwater discharge water 

20 quality; 

21 ‘‘(B) attains preconstruction hydrology; 

22 ‘‘(C) promotes infiltration of stormwater 

23 into groundwater; 

24 ‘‘(D) recharges groundwater; 

25 ‘‘(E) minimizes stream bank erosion; 
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1 ‘‘(F) promotes natural filters; 

2 ‘‘(G) otherwise mitigates water quality im3 pacts of highway stormwater discharges, im4 proves surface water quality, or enhances 

5 groundwater recharge; or 

6 ‘‘(H) reduces flooding caused by highway 

7 stormwater discharge. 

8 ‘‘(3) FEDERAL-AID HIGHWAY AND ASSOCIATED

9 FACILITY.—The term ‘Federal-aid highway and asso10 ciated facility’ means— 

11 ‘‘(A) a Federal-aid highway; or 

12 ‘‘(B) a facility or land owned by a State (or 

13 political subdivision of a State) that is directly 

14 associated with the Federal-aid highway. 

15 ‘‘(4) HIGHWAY STORMWATER DISCHARGE.—The 

16 term ‘highway stormwater discharge’ means 

17 stormwater discharge from a Federal-aid highway, or 

18 a Federal-aid highway and associated facility, that 

19 was constructed before the date of enactment of this 

20 section. 

21 ‘‘(5) HIGHWAY STORMWATER DISCHARGE MITI22 GATION.—The term ‘highway stormwater discharge 

23 mitigation’ means— 

24 ‘‘(A) the reduction of water quality impacts 

25 of stormwater discharges from Federal-aid high-
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1 ways or Federal-aid highways and associated fa2 cilities; or 

3 ‘‘(B) the enhancement of groundwater re4 charge from stormwater discharges from Federal5 aid highways or Federal-aid highways and asso6 ciated facilities. 

7 ‘‘(6) PROGRAM.—The term ‘program’ means the 

8 highway stormwater discharge mitigation program 

9 established under subsection (b). 

10 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish 

11 a highway stormwater discharge mitigation program— 

12 ‘‘(1) to improve the quality of stormwater dis13 charge from Federal-aid highways or Federal-aid 

14 highways and associated facilities; and 

15 ‘‘(2) to enhance groundwater recharge. 

16 ‘‘(c) PRIORITY OF PROJECTS.—For projects funded 

17 from the allocation under section 133(d)(6), a State shall 

18 give priority to projects sponsored by a State or local gov19 ernment that assist the State or local government in com20 plying with the Federal Water Pollution Control Act (33 

21 U.S.C. 1251 et seq.). 

22 ‘‘(d) GUIDANCE.— 

23 ‘‘(1) IN GENERAL.—Not later than 180 days 

24 after the date of enactment of this section, the Sec25 retary, in consultation with the Administrator, shall 
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1 issue guidance to assist States in carrying out this 

2 section. 

3 ‘‘(2) REQUIREMENTS FOR GUIDANCE.—The guid4 ance issued under paragraph (1) shall include infor5 mation concerning innovative technologies and non6 structural best management practices to mitigate 

7 highway stormwater discharges.’’. 

8 (c) CONFORMING AMENDMENT.—The analysis for sub9 chapter I of chapter 1 of title 23, United States Code (as 

10 amended by section 1601(b), is amended by inserting after 

11 the item relating to section 166 the following: 

‘‘167. Highway stormwater discharge mitigation program.’’. 

12 SEC. 1621. EXEMPTION FROM CERTAIN HAZARDOUS MATE13 RIALS TRANSPORTATION REQUIREMENTS. 

14 (a) DEFINITION OF ELIGIBLE PERSON.—In this sec15 tion, the term ‘‘eligible person’’ means an agricultural pro16 ducer that has gross agricultural commodity sales that do 

17 not exceed $500,000. 

18 (b) EXEMPTION.—Subject to subsection (c), part 172 

19 of title 49, Code of Federal Regulations, shall not apply to 

20 an eligible person that transports a fertilizer, pesticide, pro21 pane, gasoline, or diesel fuel for agricultural purposes, to 

22 the extent determined by the Secretary. 

23 (c) APPLICABILITY.—Subsection (b) applies to security 

24 plan requirements under subpart I of part 172 of title 49, 

25 Code of Federal Regulations (or a successor regulation). 
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1 SEC. 1622. FUNDS FOR REBUILDING FISH STOCKS. 

2 Section 105 of the Miscellaneous Appropriations and 

3 Offsets Act, 2004 (Division H of the Consolidated Appro4 priations Act, 2004 (Public Law 108–199)) is repealed. 

5 Subtitle G—Operations 

6 SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND 

7 OPERATIONS. 

8 (a) SURFACE TRANSPORTATION PROGRAM ELIGI9 BILITY.—Section 133(b) of title 23, United States Code (as 

10 amended by section 1601(a)(2)), is amended by adding at 

11 the end the following: 

12 ‘‘(16) Regional transportation operations col13 laboration and coordination activities that are associ14 ated with regional improvements, such as traffic inci15 dent management, technology deployment, emergency 

16 management and response, traveler information, and 

17 regional congestion relief. 

18 ‘‘(17) RUSH HOUR CONGESTION RELIEF.— 

19 ‘‘(A) IN GENERAL.—Subject to subpara20 graph (B), a State may spend the funds appor21 tioned under this section to reduce traffic delays 

22 caused by motor vehicle accidents and break23 downs on highways during peak driving times. 

24 ‘‘(B) USE OF FUNDS.—A State, metropoli25 tan planning organization, or local government 

26 may use the funds under subparagraph (A)— 
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1 ‘‘(i) to develop a region-wide coordi2 nated plan to mitigate traffic delays caused 

3 by motor vehicle accidents and breakdowns; 

4 ‘‘(ii) to purchase or lease telecommuni5 cations equipment for first responders; 

6 ‘‘(iii) to purchase or lease towing and 

7 recovery services; 

8 ‘‘(iv) to pay contractors for towing and 

9 recovery; 

10 ‘‘(v) to rent vehicle storage areas adja11 cent to roadways; 

12 ‘‘(vi) to fund service patrols, equip13 ment, and operations; 

14 ‘‘(vii) to purchase incident detection 

15 equipment; 

16 ‘‘(viii) to carry out training.’’. 

17 (b) CONGESTION MITIGATION AND AIR QUALITY IM18 PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5) of 

19 title 23, United States Code, is amended by inserting ‘‘im20 prove transportation systems management and operations,’’ 

21 after ‘‘intersections,’’. 

22 (c) TRANSPORTATION SYSTEMS MANAGEMENT AND OP23 ERATIONS.— 

24 (1) IN GENERAL.—Subchapter I of chapter 1 of 

25 title 23, United States Code (as amended by section 
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1 1620(b)), is amended by adding at the end the fol2 lowing: 

3 ‘‘§ 168. Transportation systems management and oper4 ations 

5 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

6 transportation systems management and operations pro7 gram to— 

8 ‘‘(1) ensure efficient and effective transportation 

9 systems management and operations on Federal-aid 

10 highways through collaboration, coordination, and 

11 real-time information sharing at a regional and 

12 Statewide level among— 

13 ‘‘(A) managers and operators of major 

14 modes of transportation; 

15 ‘‘(B) public safety officials; and 

16 ‘‘(C) the general public; and 

17 ‘‘(2) manage and operate Federal-aid highways 

18 in a coordinated manner to preserve the capacity and 

19 maximize the performance of highway and transit fa20 cilities for travelers and carriers. 

21 ‘‘(b) AUTHORIZED ACTIVITIES.— 

22 ‘‘(1) IN GENERAL.—In carrying out the program 

23 under subsection (a), the Secretary may carry out ac24 tivities to— 
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1 ‘‘(A) encourage managers and operators of 

2 major modes of transportation, public safety offi3 cials, and transportation planners in urbanized 

4 areas that are responsible for conducting the 

5 day-to-day management, operations, public safe6 ty, and planning of transportation facilities and 

7 services to collaborate on and coordinate, on a 

8 regional level and in a continuous and sustained 

9 manner, improved transportation systems man10 agement and operations; and 

11 ‘‘(B) encourage States to— 

12 ‘‘(i) establish a system of basic real13 time monitoring for the surface transpor14 tation system; and 

15 ‘‘(ii) provide the means to share the 

16 data gathered under clause (i) among— 

17 ‘‘(I) highway, transit, and public 

18 safety agencies; 

19 ‘‘(II) jurisdictions (including 

20 States, cities, counties, and metropoli21 tan planning organizations); 

22 ‘‘(III) private-sector entities; and 

23 ‘‘(IV) the general public. 

24 ‘‘(2) ACTIVITIES.—Activities to be carried out 

25 under paragraph (1) include— 
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1 ‘‘(A) developing a regional concept of oper2 ations that defines a regional strategy shared by 

3 all transportation and public safety participants 

4 with respect to the manner in which the trans5 portation systems of the region should be man6 aged, operated, and measured; 

7 ‘‘(B) the sharing of information among op8 erators, service providers, public safety officials, 

9 and the general public; and 

10 ‘‘(C) guiding, in a regionally-coordinated 

11 manner and in a manner consistent with and 

12 integrated into the metropolitan and statewide 

13 transportation planning processes and regional 

14 intelligent transportation system architecture, 

15 the implementation of regional transportation 

16 system management and operations initiatives, 

17 including— 

18 ‘‘(i) emergency evacuation and re19 sponse; 

20 ‘‘(ii) traffic incident management; 

21 ‘‘(iii) technology deployment; and 

22 ‘‘(iv) traveler information systems de23 livery. 

24 ‘‘(c) COOPERATION.—In carrying out the program 

25 under subsection (a), the Secretary may assist and cooper-
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1 ate with other Federal agencies, State and local govern2 ments, metropolitan planning organizations, private indus3 try, and other interested parties to improve regional col4 laboration and real-time information sharing between man5 agers and operators of major modes of transportation, pub6 lic safety officials, emergency managers, and the general 

7 public to increase the security, safety, and reliability of 

8 Federal-aid highways. 

9 ‘‘(d) GUIDANCE; REGULATIONS.— 

10 ‘‘(1) IN GENERAL.—In carrying out the program 

11 under subsection (a), the Secretary may issue guid12 ance or promulgate regulations for the procurement of 

13 transportation system management and operations 

14 facilities, equipment, and services, including— 

15 ‘‘(A) equipment procured in preparation for 

16 natural disasters, disasters caused by human ac17 tivity, and emergencies; 

18 ‘‘(B) system hardware; 

19 ‘‘(C) software; and 

20 ‘‘(D) software integration services. 

21 ‘‘(2) CONSIDERATIONS.—In developing the guid22 ance or regulations under paragraph (1), the Sec23 retary may consider innovative procurement methods 

24 that support the timely and streamlined execution of 
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1 transportation system management and operations 

2 programs and projects. 

3 ‘‘(3) FINANCIAL ASSISTANCE.—The Secretary 

4 may authorize the use of funds made available under 

5 section 104(b)(3) to provide assistance for regional 

6 operations collaboration and coordination activities 

7 that are associated with regional improvements, such 

8 as— 

9 ‘‘(A) traffic incident management; 

10 ‘‘(B) technology deployment; 

11 ‘‘(C) emergency management and response; 

12 ‘‘(D) traveler information; and 

13 ‘‘(E) congestion relief.’’. 

14 (2) CONFORMING AMENDMENT.—The analysis for 

15 subchapter I of chapter 1 of title 23, United States 

16 Code (as amended by section 1620(c)), is amended by 

17 adding at the end: 

‘‘168. Transportation systems management and operations.’’. 

18 SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMA19 TION PROGRAM. 

20 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

21 23, United States Code (as amended by section 1701(c)(1)), 

22 is amended by adding at the end the following: 
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1 ‘‘§ 169. Real-time system management information 

2 program 

3 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

4 real-time system management information program to— 

5 ‘‘(1) provide a nationwide system of basic real6 time information for managing and operating the 

7 surface transportation system; 

8 ‘‘(2)(A) identify long-range real-time highway 

9 and transit monitoring needs; and 

10 ‘‘(B) develop plans and strategies for meeting 

11 those needs; 

12 ‘‘(3) provide the capability and means to share 

13 the basic real-time information with State and local 

14 governments and the traveling public; and 

15 ‘‘(4) provide the nationwide capability to mon16 itor, in real-time, the traffic and travel conditions of 

17 major highways in the United States, and to share 

18 that information with State and local governments 

19 and the traveling public, to— 

20 ‘‘(A) improve the security of the surface 

21 transportation system; 

22 ‘‘(B) address congestion problems; 

23 ‘‘(C) support improved response to weather 

24 events; and 

25 ‘‘(D) facilitate the distribution of national 

26 and regional traveler information. 
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1 ‘‘(b) DATA EXCHANGE FORMATS.—Not later than 1 

2 year after the date of enactment of this section, the Sec3 retary shall establish data exchange formats to ensure that 

4 the data provided by highway and transit monitoring sys5 tems (including statewide incident reporting systems) can 

6 readily be exchanged between jurisdictions to facilitate the 

7 nationwide availability of information on traffic and travel 

8 conditions. 

9 ‘‘(c) STATEWIDE INCIDENT REPORTING SYSTEM.—Not 

10 later than 2 years after the date of enactment of this section, 

11 or not later than 5 years after the date of enactment of this 

12 section if the Secretary determines that adequate real-time 

13 communications capability will not be available within 2 

14 years after the date of enactment of this section, each State 

15 shall establish a statewide incident reporting system to fa16 cilitate the real-time electronic reporting of highway and 

17 transit incidents to a central location for use in— 

18 ‘‘(1) monitoring an incident; 

19 ‘‘(2) providing accurate traveler information on 

20 the incident; and 

21 ‘‘(3) responding to the incident as appropriate. 

22 ‘‘(d) REGIONAL ITS ARCHITECTURE.— 

23 ‘‘(1) IN GENERAL.—In developing or updating 

24 regional intelligent transportation system architec25 tures under section 940.9 of title 23, Code of Federal 
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1 Regulations (or any successor regulation), States and 

2 local governments shall address— 

3 ‘‘(A) the real-time highway and transit in4 formation needs of the State or local government, 

5 including coverage, monitoring systems, data fu6 sion and archiving, and methods of exchanging 

7 or sharing information; and 

8 ‘‘(B) the systems needed to meet those needs. 

9 ‘‘(2) DATA EXCHANGE FORMATS.—In developing 

10 or updating regional intelligent transportation system 

11 architectures, States and local governments are en12 couraged to incorporate the data exchange formats de13 veloped by the Secretary under subsection (b) to en14 sure that the data provided by highway and transit 

15 monitoring systems can readily be— 

16 ‘‘(A) exchanged between jurisdictions; and 

17 ‘‘(B) shared with the traveling public. 

18 ‘‘(e) ELIGIBLE FUNDING.—Subject to project approval 

19 by the Secretary, a State may— 

20 ‘‘(1) use funds available to the State under sec21 tion 505(a) to carry out activities relating to the 

22 planning of real-time monitoring elements; and 

23 ‘‘(2) use funds apportioned to the State under 

24 paragraphs (1) and (3) of section 104(b) to carry out 
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1 activities relating to the planning and deployment of 

2 real-time monitoring elements.’’. 

3 (b) CONFORMING AMENDMENT.—The analysis for sub4 chapter I of chapter 1 of title 23, United States Code (as 

5 amended by section 1701(c)(2)), is amended adding at the 

6 end the following: 

‘‘169. Real-time system management information program.’’. 

7 SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN 

8 SERVICES. 

9 Section 112(b)(2) of title 23, United States Code, is 

10 amended— 

11 (1) in subparagraph (A), by striking ‘‘title 40’’ 

12 and all that follows through the period and inserting 

13 ‘‘title 40.’’; 

14 (2) by striking subparagraph (B); 

15 (3) by redesignating subparagraphs (C) through 

16 (F) as subparagraphs (B) through (E), respectively; 

17 and 

18 (4) by striking subparagraph (G). 

19 SEC. 1704. OFF-DUTY TIME FOR DRIVERS OF COMMERCIAL 

20 VEHICLES. 

21 Section 345(a)(2) of the National Highway System 

22 Designation Act of 1995 (49 U.S.C. 31136 note; 109 Stat. 

23 613) is amended by adding at the end the following: ‘‘No 

24 additional off-duty time for a driver of such a vehicle shall 

25 be required in order for the driver to operate the vehicle.’’. 
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1 SEC. 1705. DESIGNATION OF TRANSPORTATION MANAGE2 MENT AREAS. 

3 (a) FUNDING.—Section 134(d)(3)(C)(ii) of title 23, 

4 United States Code, is amended by striking subclause (II) 

5 and inserting the following: 

6 ‘‘(II) FUNDING.—In addition to 

7 funds made available to the metropoli8 tan planning organization for the Lake 

9 Tahoe Region under this title and 

10 chapter 53 of title 49, 1 percent of all 

11 funds distributed under section 202 

12 shall be used to carry out the transpor13 tation planning process for the Lake 

14 Tahoe region under this subpara15 graph.’’. 

16 (b) SPECIAL DESIGNATION.—Section 134(i)(1) of title 

17 23, United States Code, is amended by adding at the end 

18 the following: 

19 ‘‘(C) SPECIAL DESIGNATION.— 

20 ‘‘(i) IN GENERAL.—The urbanized 

21 areas of Oklahoma City, Oklahoma, and 

22 Norman, Oklahoma, shall be designated as 

23 a single transportation management area. 

24 ‘‘(ii) ALLOCATION.—The allocation of 

25 funds to the Oklahoma City-Norman Trans26 portation Management Area designated 
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1 under clause (i) shall be based on the aggre2 gate population of the 2 urbanized areas re3 ferred to in that clause, as determined by 

4 the Bureau of the Census.’’. 

5 Subtitle H—Federal-Aid 

6 Stewardship 

7 SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES. 

8 Section 103(c)(4)(B) of title 23, United States Code, 

9 is amended— 

10 (1) in clause (ii), by striking ‘‘12’’ and inserting 

11 ‘‘25’’; and 

12 (2) in clause (iii)— 

13 (A) in subclause (I), by striking ‘‘in the 

14 agreement between the Secretary and the State 

15 or States’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(III) EXISTING AGREEMENTS.— 

18 An agreement described in clause (ii) 

19 that is entered into before the date of 

20 enactment of this subparagraph shall 

21 be deemed to include the 25-year time 

22 limitation described in that clause, re23 gardless of any earlier construction 

24 completion date in the agreement.’’. 
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1 SEC. 1802. STEWARDSHIP AND OVERSIGHT. 

2 (a) IN GENERAL.—Section 106 of title 23, United 

3 States Code, is amended— 

4 (1) by striking subsection (e) and inserting the 

5 following: 

6 ‘‘(e) VALUE ENGINEERING ANALYSIS.— 

7 ‘‘(1) DEFINITION OF VALUE ENGINEERING ANAL8 YSIS.— 

9 ‘‘(A) IN GENERAL.—In this subsection, the 

10 term ‘value engineering analysis’ means a sys11 tematic process of review and analysis of a 

12 project, during the concept and design phases, by 

13 a multidisciplined team of persons not involved 

14 in the project, that is conducted to provide rec15 ommendations such as those described in sub16 paragraph (B) for— 

17 ‘‘(i) providing the needed functions 

18 safely, reliably, and at the lowest overall 

19 cost; and 

20 ‘‘(ii) improving the value and quality 

21 of the project. 

22 ‘‘(B) INCLUSIONS.—The recommendations 

23 referred to in subparagraph (A) include, with re24 spect to a project— 
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1 ‘‘(i) combining or eliminating other2 wise inefficient use of costly parts of the 

3 original proposed design for the project; and 

4 ‘‘(ii) completely redesigning the project 

5 using different technologies, materials, or 

6 methods so as to accomplish the original 

7 purpose of the project. 

8 ‘‘(2) ANALYSIS.—The State shall provide a value 

9 engineering analysis or other cost-reduction analysis 

10 for— 

11 ‘‘(A) each project on the Federal-Aid System 

12 with an estimated total cost of $25,000,000 or 

13 more; 

14 ‘‘(B) a bridge project with an estimated 

15 total cost of $20,000,000 or more; and 

16 ‘‘(C) any other project the Secretary deter17 mines to be appropriate. 

18 ‘‘(3) MAJOR PROJECTS.—The Secretary may re19 quire more than 1 analysis described in paragraph 

20 (2) for a major project described in subsection (h). 

21 ‘‘(4) REQUIREMENTS.—Analyses described in 

22 paragraph (1) for a bridge project shall— 

23 ‘‘(A) include bridge substructure require24 ments based on construction material; and 

25 ‘‘(B) be evaluated— 
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1 ‘‘(i) on engineering and economic 

2 bases, taking into consideration acceptable 

3 designs for bridges; and 

4 ‘‘(ii) using an analysis of life-cycle 

5 costs and duration of project construction.’’; 

6 and 

7 (2) by striking subsections (g) and (h) and in8 serting the following: 

9 ‘‘(g) OVERSIGHT PROGRAM.— 

10 ‘‘(1) PROGRAM.— 

11 ‘‘(A) IN GENERAL.—The Secretary shall es12 tablish an oversight program to monitor the ef13 fective and efficient use of funds made available 

14 under this title. 

15 ‘‘(B) MINIMUM REQUIREMENTS.—At a min16 imum, the program shall monitor and respond to 

17 all areas relating to financial integrity and 

18 project delivery. 

19 ‘‘(2) FINANCIAL INTEGRITY.— 

20 ‘‘(A) FINANCIAL MANAGEMENT SYSTEMS.— 

21 ‘‘(i) IN GENERAL.—The Secretary shall 

22 perform annual reviews of the financial 

23 management systems of State transpor24 tation departments that affect projects ap25 proved under subsection (a). 
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1 ‘‘(ii) REVIEW AREAS.—In carrying out 

2 clause (i), the Secretary shall use risk as3 sessment procedures to identify areas to be 

4 reviewed. 

5 ‘‘(B) PROJECT COSTS.—The Secretary 

6 shall— 

7 ‘‘(i) develop minimum standards for 

8 estimating project costs; and 

9 ‘‘(ii) periodically evaluate practices of 

10 the States for— 

11 ‘‘(I) estimating project costs; 

12 ‘‘(II) awarding contracts; and 

13 ‘‘(III) reducing project costs. 

14 ‘‘(C) RESPONSIBILITY OF THE STATES.— 

15 ‘‘(i) IN GENERAL.—Each State shall be 

16 responsible for ensuring that subrecipients 

17 of Federal funds within the State under this 

18 section have— 

19 ‘‘(I) sufficient accounting controls 

20 to properly manage the Federal funds; 

21 and 

22 ‘‘(II) adequate project delivery 

23 systems for projects approved under 

24 this section. 
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1 ‘‘(ii) REVIEW BY SECRETARY.—The 

2 Secretary shall periodically review moni3 toring by the States of those subrecipients. 

4 ‘‘(3) PROJECT DELIVERY.—The Secretary shall— 

5 ‘‘(A) perform annual reviews of the project 

6 delivery system of each State, including analysis 

7 of 1 or more activities that are involved in the 

8 life cycle of a project; and 

9 ‘‘(B) employ risk assessment procedures to 

10 identify areas to be reviewed. 

11 ‘‘(4) SPECIFIC OVERSIGHT RESPONSIBILITIES.— 

12 Nothing in this section discharges or otherwise affects 

13 any oversight responsibility of the Secretary— 

14 ‘‘(A) specifically provided for under this 

15 title or other Federal law; or 

16 ‘‘(B) for the design and construction of all 

17 Appalachian development highways under sec18 tion 14501 of title 40 or section 170 of this title. 

19 ‘‘(h) MAJOR PROJECTS.— 

20 ‘‘(1) IN GENERAL.—Notwithstanding any other 

21 provision of this section, a recipient of Federal finan22 cial assistance for a project under this title with an 

23 estimated total cost of $1,000,000,000 or more, and 

24 recipients for such other projects as may be identified 
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1 by the Secretary, shall submit to the Secretary for 

2 each project— 

3 ‘‘(A) a project management plan; and 

4 ‘‘(B) an annual financial plan. 

5 ‘‘(2) PROJECT MANAGEMENT PLAN.—A project 

6 management plan shall document— 

7 ‘‘(A) the procedures and processes that are 

8 in effect to provide timely information to the 

9 project decisionmakers to effectively manage the 

10 scope, costs, schedules, and quality of, and the 

11 Federal requirements applicable to, the project; 

12 and 

13 ‘‘(B) the role of the agency leadership and 

14 management team in the delivery of the project. 

15 ‘‘(3) FINANCIAL PLAN.—A financial plan shall— 

16 ‘‘(A) be based on detailed estimates of the 

17 cost to complete the project; and 

18 ‘‘(B) provide for the annual submission of 

19 updates to the Secretary that are based on rea20 sonable assumptions, as determined by the Sec21 retary, of future increases in the cost to complete 

22 the project. 

23 ‘‘(i) OTHER PROJECTS.—A recipient of Federal finan24 cial assistance for a project under this title that receives 

25 $100,000,000 or more in Federal assistance for the project, 
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1 and that is not covered by subsection (h), shall prepare, and 

2 make available to the Secretary at the request of the Sec3 retary, an annual financial plan for the project.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Section 114(a) of title 23, United States 

6 Code, is amended— 

7 (A) in the first sentence by striking ‘‘high8 ways or portions of highways located on a Fed9 eral-aid system’’ and inserting ‘‘Federal-aid 

10 highway or a portion of a Federal-aid highway’’; 

11 and 

12 (B) by striking the second sentence and in13 serting ‘‘The Secretary shall have the right to 

14 conduct such inspections and take such corrective 

15 action as the Secretary determines to be appro16 priate.’’. 

17 (2) Section 117 of title 23, United States Code, 

18 is amended— 

19 (A) by striking subsection (d); and 

20 (B) by redesignating subsections (e) through 

21 (h) as subsections (d) through (g), respectively. 

22 (c) CONTRACTOR SUSPENSION AND DEBARMENT POL23 ICY; SHARING FRAUD MONETARY RECOVERIES.— 

24 (1) IN GENERAL.—Section 307 of title 49, 

25 United States Code, is amended to read as follows: 
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1 ‘‘§ 307. Contractor suspension and debarment policy; 

2 sharing fraud monetary recoveries 

3 ‘‘(a) MANDATORY ENFORCEMENT POLICY.— 

4 ‘‘(1) IN GENERAL.—Notwithstanding any other 

5 provision of law, the Secretary— 

6 ‘‘(A) shall debar any contractor or subcon7 tractor convicted of a criminal or civil offense 

8 involving fraud relating to a project receiving 

9 Federal highway or transit funds for such period 

10 as the Secretary determines to be appropriate; 

11 and 

12 ‘‘(B) subject to approval by the Attorney 

13 General— 

14 ‘‘(i) except as provided in paragraph 

15 (2), shall suspend any contractor or subcon16 tractor upon indictment for criminal or 

17 civil offenses involving fraud; and 

18 ‘‘(ii) may exclude nonaffiliated sub19 sidiaries of a debarred business entity. 

20 ‘‘(2) NATIONAL SECURITY EXCEPTION.—If the 

21 Secretary finds that mandatory debarment or suspen22 sion of a contractor or subcontractor under paragraph 

23 (1) would be contrary to the national security of the 

24 United States, the Secretary— 

25 ‘‘(A) may waive the debarment or suspen26 sion; and 
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1 ‘‘(B) in the instance of each waiver, shall 

2 provide notification to Congress of the waiver 

3 with appropriate details. 

4 ‘‘(b) SHARING OF MONETARY RECOVERIES.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 provision of law— 

7 ‘‘(A) monetary judgments accruing to the 

8 Federal Government from judgments in Federal 

9 criminal prosecutions and civil judgments per10 taining to fraud in highway and transit pro11 grams shall be shared with the State or local 

12 transit agency involved; and 

13 ‘‘(B) the State or local transit agency shall 

14 use the funds for transportation infrastructure 

15 and oversight activities relating to programs au16 thorized under title 23 and this title. 

17 ‘‘(2) AMOUNT.—The amount of recovered funds 

18 to be shared with an affected State or local transit 

19 agency shall be— 

20 ‘‘(A) determined by the Attorney General, 

21 in consultation with the Secretary; and 

22 ‘‘(B) considered to be Federal funds to be 

23 used in compliance with other relevant Federal 

24 transportation laws (including regulations). 
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1 ‘‘(3) FRAUDULENT ACTIVITY.—Paragraph (1) 

2 shall not apply in any case in which a State or local 

3 transit agency is found by the Attorney General, in 

4 consultation with the Secretary, to have been involved 

5 or negligent with respect to the fraudulent activities.’’. 

6 (2) CONFORMING AMENDMENT.—The analysis for 

7 chapter 3 of title 49, United States Code, is amended 

8 by striking the item relating to section 307 and in9 serting the following: 

‘‘307. Contractor suspension and debarment policy; sharing fraud monetary recoveries.’’. 

10 SEC. 1803. DESIGN-BUILD CONTRACTING. 

11 Section 112(b)(3) of title 23, United States Code, is 

12 amended by striking subparagraph (C) and inserting the 

13 following: 

14 ‘‘(C) QUALIFIED PROJECTS.—A qualified 

15 project referred to in subparagraph (A) is a 

16 project under this chapter (including intermodal 

17 projects) for which the Secretary has approved 

18 the use of design-build contracting under criteria 

19 specified in regulations promulgated by the Sec20 retary.’’. 

21 SEC. 1804. PROGRAM EFFICIENCIES—FINANCE. 

22 (a) ADVANCE CONSTRUCTION.—Section 115 of title 23, 

23 United States Code, is amended— 
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1 (1) by redesignating subsection (c) as subsection 

2 (d); 

3 (2) by redesignating subsections (a)(2), 

4 (a)(2)(A), and (a)(2)(B) as subsections (c), (c)(1), 

5 and (c)(2), respectively, and indenting appropriately; 

6 (3) by striking ‘‘(a) CONGESTION’’ and all that 

7 follows through subsection (a)(1)(B); 

8 (4) by striking subsection (b); and 

9 (5) by inserting after the section heading the fol10 lowing: 

11 ‘‘(a) IN GENERAL.—The Secretary may authorize a 

12 State to proceed with a project authorized under this title— 

13 ‘‘(1) without the use of Federal funds; and 

14 ‘‘(2) in accordance with all procedures and re15 quirements applicable to the project other than those 

16 procedures and requirements that limit the State to 

17 implementation of a project— 

18 ‘‘(A) with the aid of Federal funds pre19 viously apportioned or allocated to the State; or 

20 ‘‘(B) with obligation authority previously 

21 allocated to the State. 

22 ‘‘(b) OBLIGATION OF FEDERAL SHARE.—The Sec23 retary, on the request of a State and execution of a project 

24 agreement, may obligate all or a portion of the Federal 
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1 share of the project authorized under this section from any 

2 category of funds for which the project is eligible.’’. 

3 (b) OBLIGATION AND RELEASE OF FUNDS.—Section 

4 118 of title 23, United States Code, is amended by striking 

5 subsection (d) and inserting the following: 

6 ‘‘(d) OBLIGATION AND RELEASE OF FUNDS.— 

7 ‘‘(1) IN GENERAL.—Funds apportioned or allo8 cated to a State for a particular purpose for any fis9 cal year shall be considered to be obligated if a sum 

10 equal to the total of the funds apportioned or allo11 cated to the State for that purpose for that fiscal year 

12 and previous fiscal years is obligated. 

13 ‘‘(2) RELEASED FUNDS.—Any funds released by 

14 the final payment for a project, or by modifying the 

15 project agreement for a project, shall be— 

16 ‘‘(A) credited to the same class of funds pre17 viously apportioned or allocated to the State; 

18 and 

19 ‘‘(B) immediately available for obligation. 

20 ‘‘(3) NET OBLIGATIONS.—Notwithstanding any 

21 other provision of law (including a regulation), obli22 gations recorded against funds made available under 

23 this section shall be recorded and reported as net obli24 gations.’’. 
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1 SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY 

2 PROJECTS. 

3 Section 118(c)(1) of title 23, United States Code, is 

4 amended— 

5 (1) by striking ‘‘$50,000,000’’ and all that 

6 follows through ‘‘2003’’ and inserting 

7 ‘‘$100,000,000 for each of fiscal years 2004 

8 through 2009’’; and 

9 (2) by striking ‘‘Transportation Equity Act 

10 for the 21st Century’’ and inserting ‘‘Safe, Ac11 countable, Flexible, and Efficient Transportation 

12 Equity Act of 2004’’. 

13 SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM. 

14 (a) FEDERAL SHARE PAYABLE.— 

15 (1) IN GENERAL.—Section 120(k) of title 23, 

16 United States Code, is amended— 

17 (A) by striking ‘‘Federal-aid highway’’; and 

18 (B) by striking ‘‘section 104’’ and inserting 

19 ‘‘this title or chapter 53 of title 49’’. 

20 (2) TECHNICAL REFERENCES.—Section 120(l) of 

21 title 23, United States Code, is amended by striking 

22 ‘‘section 104’’ and inserting ‘‘this title or chapter 53 

23 of title 49’’. 

24 (b) PAYMENTS TO FEDERAL AGENCIES FOR FEDERAL25 AID PROJECTS.—Section 132 of title 23, United States 

26 Code, is amended— 
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1 (1) by striking the first 2 sentences and inserting 

2 the following: 

3 ‘‘(a) IN GENERAL.—In a case in which a proposed 

4 Federal-aid project is to be undertaken by a Federal agency 

5 in accordance with an agreement between a State and the 

6 Federal agency, the State may— 

7 ‘‘(1) direct the Secretary to transfer the funds for 

8 the Federal share of the project directly to the Federal 

9 agency; or 

10 ‘‘(2) make such deposit with, or payment to, the 

11 Federal agency as is required to meet the obligation 

12 of the State under the agreement for the work under13 taken or to be undertaken by the Federal agency. 

14 ‘‘(b) REIMBURSEMENT.—On execution of a project 

15 agreement with a State described in subsection (a), the Sec16 retary may reimburse the State, using any available funds, 

17 for the estimated Federal share under this title of the obliga18 tion of the State deposited or paid under subsection 

19 (a)(2).’’; and 

20 (2) in the last sentence, by striking ‘‘Any sums’’ 

21 and inserting the following: 

22 ‘‘(c) RECOVERY AND CREDITING OF FUNDS.—Any 

23 sums’’. 

24 (c) ALLOCATIONS.—Section 202 of title 23, United 

25 States Code, is amended— 
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1 (1) in subsection (a), by striking ‘‘(a) On Octo2 ber 1’’ and all that follows through ‘‘Such allocation’’ 

3 and inserting the following: 

4 ‘‘(a) ALLOCATION BASED ON NEED.— 

5 ‘‘(1) IN GENERAL.—On October 1 of each fiscal 

6 year, the Secretary shall allocate sums authorized to 

7 be appropriated for the fiscal year for forest develop8 ment roads and trails according to the relative needs 

9 of the various national forests and grasslands. 

10 ‘‘(2) PLANNING.—The allocation under para11 graph (1)’’; 

12 (2) by striking subsection (b) and inserting the 

13 following: 

14 ‘‘(b) ALLOCATION FOR PUBLIC LANDS HIGHWAYS.— 

15 ‘‘(1) PUBLIC LANDS HIGHWAYS.— 

16 ‘‘(A) IN GENERAL.—On October 1 of each 

fiscal year, the Secretary shall allocate 331 17 ⁄3 per18 cent of the sums authorized to be appropriated 

19 for that fiscal year for public lands highways 

20 among those States having unappropriated or 

21 unreserved public lands, or nontaxable Indian 

22 lands or other Federal reservations, on the basis 

23 of need in the States, respectively, as determined 

24 by the Secretary, on application of the State 
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1 transportation departments of the respective 

2 States. 

3 ‘‘(B) PREFERENCE.—In making the alloca4 tion under subparagraph (A), the Secretary shall 

5 give preference to those projects that are signifi6 cantly impacted by Federal land and resource 

7 management activities that are proposed by a 

8 State that contains at least 3 percent of the total 

9 public land in the United States. 

10 ‘‘(2) FOREST HIGHWAYS.— 

11 ‘‘(A) IN GENERAL.—On October 1 of each 

fiscal year, the Secretary shall allocate 662 12 ⁄3 per13 cent of the funds authorized to be appropriated 

14 for public lands highways for forest highways in 

15 accordance with section 134 of the Federal-Aid 

16 Highway Act of 1987 (23 U.S.C. 202 note; 101 

17 Stat. 173). 

18 ‘‘(B) PUBLIC ACCESS TO AND WITHIN NA19 TIONAL FOREST SYSTEM.—In making the alloca20 tion under subparagraph (A), the Secretary shall 

21 give equal consideration to projects that provide 

22 access to and within the National Forest System, 

23 as identified by the Secretary of Agriculture 

24 through— 
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1 ‘‘(i) renewable resource and land use 

2 planning; and 

3 ‘‘(ii) assessments of the impact of that 

4 planning on transportation facilities.’’; 

5 (3) in subsection (c)— 

6 (A) by striking ‘‘(c) On’’ and inserting the 

7 following: 

8 ‘‘(c) PARK ROADS AND PARKWAYS.— 

9 ‘‘(1) IN GENERAL.—On’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(2) PRIORITY.— 

12 ‘‘(A) DEFINITION OF QUALIFYING NATIONAL

13 PARK.—In this paragraph, the term ‘‘qualifying 

14 national park’’ means a National Park that is 

15 used more than 1,000,000 recreational visitor 

16 days per year, based on an average of the 3 most 

17 recent years of available data from the National 

18 Park Service. 

19 ‘‘(B) PRIORITY.—Notwithstanding any 

20 other provision of law, with respect to funds au21 thorized for park roads and parkways, the Sec22 retary shall give priority in the allocation of 

23 funds to projects for highways that— 

24 ‘‘(i) are located in, or provide access 

25 to, a qualifying National Park; and 
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1 ‘‘(ii) were initially constructed before 

2 1940. 

3 ‘‘(C) PRIORITY CONFLICTS.—If there is a 

4 conflict between projects described in subpara5 graph (B), the Secretary shall give highest pri6 ority to projects that— 

7 ‘‘(i) are in, or that provide access to, 

8 parks that are adjacent to a National Park 

9 of a foreign country; or 

10 ‘‘(ii) are located in more than 1 

11 State;’’; 

12 (4) in subsection (d)— 

13 (A) in paragraph (1)— 

14 (i) in the paragraph heading, by strik15 ing ‘‘1999’’ and inserting ‘‘2005’’; and 

16 (ii) by striking ‘‘1999’’ and inserting 

17 ‘‘2005’’; 

18 (B) in paragraph (2)— 

19 (i) in the paragraph heading, by strik20 ing ‘‘2000’’ and inserting ‘‘2005’’; 

21 (ii) in subparagraphs (A), (B), and 

22 (D), by striking ‘‘2000’’ each place it ap23 pears and inserting ‘‘2005’’; 
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1 (iii) in subparagraph (B), by striking 

2 ‘‘1999’’ each place it appears and inserting 

3 ‘‘2004’’; and 

4 (iv) by adding at the end the following: 

5 ‘‘(E) TRANSFERRED FUNDS.— 

6 ‘‘(i) IN GENERAL.—Not later than 30 

7 days after the date on which funds are 

8 made available to the Secretary of the Inte9 rior under this paragraph, the funds shall 

10 be distributed to, and available for imme11 diate use by, the eligible Indian tribes, in 

12 accordance with the formula applicable for 

13 each fiscal year. 

14 ‘‘(ii) FORMULA.—If the Secretary of 

15 the Interior has not promulgated final regu16 lations for the distribution of funds under 

17 clause (i) for a fiscal year by the date on 

18 which the funds for the fiscal year are re19 quired to be distributed under that clause, 

20 the Secretary of the Interior shall distribute 

21 the funds under clause (i) in accordance 

22 with the applicable funding formula for the 

23 preceding year. 

24 ‘‘(iii) USE OF FUNDS.—Notwith25 standing any other provision of this section, 
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1 funds available to Indian tribes for Indian 

2 reservation roads shall be expended on 

3 projects identified in a transportation im4 provement program approved by the Sec5 retary.’’; 

6 (C) in paragraph (3)— 

7 (i) in subparagraph (A), by striking 

8 ‘‘under this title’’ and inserting ‘‘under this 

9 chapter and section 125(e)’’; and 

10 (ii) by adding at the end the following: 

11 ‘‘(C) FEDERAL LANDS HIGHWAY PROGRAM

12 DEMONSTRATION PROJECT.— 

13 ‘‘(i) IN GENERAL.—The Secretary shall 

14 establish a demonstration project under 

15 which all funds made available under this 

16 chapter for Indian reservation roads and 

17 for highway bridges located on Indian res18 ervation roads as provided for in subpara19 graph (A) shall be made available, on the 

20 request of an affected Indian tribal govern21 ment, to the Indian tribal government for 

22 use in carrying out, in accordance with the 

23 Indian Self-Determination and Education 

24 Assistance Act (25 U.S.C. 450b et seq.), con25 tracts and agreements for the planning, re-
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1 search, engineering, and construction de2 scribed in that subparagraph. 

3 ‘‘(ii) EXCLUSION OF AGENCY PARTICI4 PATION.—In accordance with subparagraph 

5 (B), all funds for Indian reservation roads 

6 and for highway bridges located on Indian 

7 reservation roads to which clause (i) applies 

8 shall be paid without regard to the organi9 zational level at which the Federal lands 

10 highway program has previously carried 

11 out the programs, functions, services, or ac12 tivities involved. 

13 ‘‘(iii) SELECTION OF PARTICIPATING

14 TRIBES.— 

15 ‘‘(I) PARTICIPANTS.— 

16 ‘‘(aa) IN GENERAL.—In ad17 dition to Indian tribes or tribal 

18 organizations that, as of the date 

19 of enactment of this subpara20 graph, are contracting or com21 pacting for any Indian reserva22 tion road function or program, for 

23 each fiscal year, the Secretary 

24 may select up to 15 Indian tribes 

25 from the applicant pool described 
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1 in subclause (II) to participate in 

2 the demonstration project carried 

3 out under clause (i). 

4 ‘‘(bb) CONSORTIA.—Two or 

5 more Indian tribes that are other6 wise eligible to participate in a 

7 program or activity to which this 

8 title applies may form a consor9 tium to be considered as a single 

10 Indian tribe for the purpose of be11 coming part of the applicant pool 

12 under subclause (II). 

13 ‘‘(cc) FUNDING.—An Indian 

14 tribe participating in the pilot 

15 program under this subparagraph 

16 shall receive funding in an 

17 amount equal to the sum of the 

18 funding that the Indian tribe 

19 would otherwise receive in accord20 ance with the funding formula es21 tablished under the other provi22 sions of this subsection, and an 

23 additional percentage of that 

24 amount equal to the percentage of 

25 funds withheld during the appli-
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1 cable fiscal year for the road pro2 gram management costs of the 

3 Bureau of Indian Affairs under 

4 subsection (f)(1). 

5 ‘‘(II) APPLICANT POOL.—The ap6 plicant pool described in this subclause 

7 shall consist of each Indian tribe (or 

8 consortium) that— 

9 ‘‘(aa) has successfully com10 pleted the planning phase de11 scribed in subclause (IV); 

12 ‘‘(bb) has requested partici13 pation in the demonstration 

14 project under this subparagraph 

15 through the adoption of a resolu16 tion or other official action by the 

17 tribal governing body; and 

18 ‘‘(cc) has demonstrated fi19 nancial stability and financial 

20 management capability in accord21 ance with subclause (III) during 

22 the 3-fiscal-year period imme23 diately preceding the fiscal year 

24 for which participation under this 

25 subparagraph is being requested. 
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1 ‘‘(III) CRITERIA FOR DETER2 MINING FINANCIAL STABILITY AND FI3 NANCIAL MANAGEMENT CAPACITY.—For 

4 the purpose of subclause (II), evidence 

5 that, during the 3-year period referred 

6 to in subclause (II)(cc), an Indian 

7 tribe had no uncorrected significant 

8 and material audit exceptions in the 

9 required annual audit of the Indian 

10 tribe’s self-determination contracts or 

11 self-governance funding agreements 

12 with any Federal agency shall be con13 clusive evidence of the required sta14 bility and capability. 

15 ‘‘(IV) PLANNING PHASE.— 

16 ‘‘(aa) IN GENERAL.—An In17 dian tribe (or consortium) re18 questing participation in the dem19 onstration project under this sub20 paragraph shall complete a plan21 ning phase that shall include legal 

22 and budgetary research and inter23 nal tribal government and organi24 zation preparation. 
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1 ‘‘(bb) ELIGIBILITY.—An In2 dian tribe (or consortium) de3 scribed in item (aa) shall be eligi4 ble to receive a grant under this 

5 subclause to plan and negotiate 

6 participation in a project de7 scribed in that item. 

8 ‘‘(V) REPORT TO CONGRESS.—Not 

9 later than September 30, 2006, the Sec10 retary shall submit to Congress a re11 port describing the implementation of 

12 the demonstration project and any rec13 ommendations for improving the 

14 project.’’; and 

15 (D) in paragraph (4)— 

16 (i) in subparagraph (B)— 

17 (I) by striking ‘‘(B) RESERVA18 TION.—Of the amounts’’ and all that 

19 follows through ‘‘to replace,’’ and in20 serting the following: 

21 ‘‘(B) FUNDING.— 

22 ‘‘(i) AUTHORIZATION OF APPROPRIA23 TIONS.—In addition to any other funds 

24 made available for Indian reservation roads 

25 for each fiscal year, there is authorized to be 
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1 appropriated from the Highway Trust 

2 Fund (other than the Mass Transit Ac3 count) $15,000,000 for each of fiscal years 

4 2004 through 2009 to carry out planning, 

5 design, engineering, preconstruction, con6 struction, and inspection of projects to re7 place,’’; and 

8 (II) by adding at the end the fol9 lowing: 

10 ‘‘(ii) AVAILABILITY.—Funds made 

11 available to carry out this subparagraph 

12 shall be available for obligation in the same 

13 manner as if the funds were apportioned 

14 under chapter 1.’’; and 

15 (ii) by striking subparagraph (D) and 

16 inserting the following: 

17 ‘‘(D) APPROVAL REQUIREMENT.— 

18 ‘‘(i) IN GENERAL.—Subject to clause 

19 (ii), on request by an Indian tribe or the 

20 Secretary of the Interior, the Secretary may 

21 make funds available under this subsection 

22 for preliminary engineering for Indian res23 ervation road bridge projects. 

24 ‘‘(ii) CONSTRUCTION AND CONSTRUC25 TION ENGINEERING.—The Secretary may 
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1 make funds available under clause (i) for 

2 construction and construction engineering 

3 only after approval by the Secretary of ap4 plicable plans, specifications, and esti5 mates.’’; and 

6 (5) by adding at the end the following: 

7 ‘‘(f) ADMINISTRATION OF INDIAN RESERVATION

8 ROADS.— 

9 ‘‘(1) CONTRACT AUTHORITY.—Notwithstanding 

10 any other provision of law, for any fiscal year, not 

11 more than 6 percent of the contract authority 

12 amounts made available from the Highway Trust 

13 Fund to the Bureau of Indian Affairs under this title 

14 shall be used to pay the expenses incurred by the Bu15 reau in administering the Indian reservation roads 

16 program (including the administrative expenses relat17 ing to individual projects associated with the Indian 

18 reservation roads program). 

19 ‘‘(2) HEALTH AND SAFETY ASSURANCES.—Not20 withstanding any other provision of law, an Indian 

21 tribe or tribal organization may commence road and 

22 bridge construction under the Transportation Equity 

23 Act for the 21st Century (Public Law 105-178) or the 

24 Safe, Accountable, Flexible, and Efficient Transpor25 tation Equity Act of 2004 that is funded through a 
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1 contract or agreement under the Indian Self-Deter2 mination and Education Assistance Act (25 U.S.C. 

3 450b et seq.) if the Indian tribe or tribal organiza4 tion— 

5 ‘‘(A) provides assurances in the contract or 

6 agreement that the construction will meet or ex7 ceed applicable health and safety standards; 

8 ‘‘(B) obtains the advance review of the 

9 plans and specifications from a licensed profes10 sional that has certified that the plans and speci11 fications meet or exceed the applicable health 

12 and safety standards; and 

13 ‘‘(C) provides a copy of the certification 

14 under subparagraph (B) to the Assistant Sec15 retary for Indian Affairs.’’. 

16 (d) PLANNING AND AGENCY COORDINATION.—Section 

17 204 of title 23, United States Code, is amended— 

18 (1) in subsection (a)(1), by inserting ‘‘refuge 

19 roads, recreation roads,’’ after ‘‘parkways,’’; 

20 (2) by striking subsection (b) and inserting the 

21 following: 

22 ‘‘(b) USE OF FUNDS.— 

23 ‘‘(1) IN GENERAL.—Funds available for public 

24 lands highways, recreation roads, park roads and 

25 parkways, forest highways, and Indian reservation 
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1 roads shall be used by the Secretary and the Secretary 

2 of the appropriate Federal land management agency 

3 to pay the cost of transportation planning, research, 

4 engineering, operation and maintenance of transit fa5 cilities, and construction of the highways, roads, 

6 parkways, forest highways, and transit facilities lo7 cated on public land, national parks, and Indian res8 ervations. 

9 ‘‘(2) CONTRACT.—In connection with an activity 

10 described in paragraph (1), the Secretary and the 

11 Secretary of the appropriate Federal land manage12 ment agency may enter into a construction contract 

13 or other appropriate agreement with— 

14 ‘‘(A) a State (including a political subdivi15 sion of a State); or 

16 ‘‘(B) an Indian tribe. 

17 ‘‘(3) INDIAN RESERVATION ROADS.—In the case 

18 of an Indian reservation road— 

19 ‘‘(A) Indian labor may be used, in accord20 ance with such rules and regulations as may be 

21 promulgated by the Secretary of the Interior, to 

22 carry out any construction or other activity de23 scribed in paragraph (1); and 

24 ‘‘(B) funds made available to carry out this 

25 section may be used to pay bridge 
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1 preconstruction costs (including planning, de2 sign, and engineering). 

3 ‘‘(4) FEDERAL EMPLOYMENT.—No maximum on 

4 Federal employment shall be applicable to construc5 tion or improvement of Indian reservation roads. 

6 ‘‘(5) AVAILABILITY OF FUNDS.—Funds available 

7 under this section for each class of Federal lands 

8 highway shall be available for any kind of transpor9 tation project eligible for assistance under this title 

10 that is within or adjacent to, or that provides access 

11 to, the areas served by the particular class of Federal 

12 lands highway. 

13 ‘‘(6) RESERVATION OF FUNDS.—The Secretary of 

14 the Interior may reserve funds from administrative 

15 funds of the Bureau of Indian Affairs that are associ16 ated with the Indian reservation road program to fi17 nance the Indian technical centers authorized under 

18 section 504(b).’’; and 

19 (3) in subsection (k)(1)— 

20 (A) in subparagraph (B)— 

21 (i) by striking ‘‘(2), (5),’’ and inserting 

22 ‘‘(2), (3), (5),’’; and 

23 (ii) by striking ‘‘and’’ after the semi24 colon; 
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1 (B) in subparagraph (C), by striking the 

2 period at the end and inserting a semicolon; and 

3 (C) by adding at the end the following: 

4 ‘‘(D) maintenance of public roads in na5 tional fish hatcheries under the jurisdiction of 

6 the United States Fish and Wildlife Service; 

7 ‘‘(E) the non-Federal share of the cost of 

8 any project funded under this title or chapter 53 

9 of title 49 that provides access to or within a 

10 wildlife refuge; and 

11 ‘‘(F) maintenance and improvement of rec12 reational trails (except that expenditures on 

13 trails under this subparagraph shall not exceed 

14 5 percent of available funds for each fiscal 

15 year).’’. 

16 (e) MAINTENANCE OF INDIAN RESERVATION ROADS.— 

17 Section 204(c) of title 23, United States Code, is amended 

18 by striking the second and third sentences and inserting the 

19 following: ‘‘Notwithstanding any other provision of this 

20 title, of the amount of funds apportioned for Indian reserva21 tion roads from the Highway Trust Fund, an Indian tribe 

22 may expend for the purpose of maintenance not more than 

23 the greater of $250,000 or 25 percent of the apportioned 

24 amount. The Bureau of Indian Affairs shall continue to re25 tain primary responsibility, including annual funding re-
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1 quest responsibility, for road maintenance programs on In2 dian reservations. The Secretary shall ensure that funding 

3 made available under this subsection for maintenance of In4 dian reservation roads for each fiscal year is supplementary 

5 to and not in lieu of any obligation of funds by the Bureau 

6 of Indian Affairs for road maintenance programs on Indian 

7 reservations.’’. 

8 (e) SAFETY.— 

9 (1) ALLOCATIONS.—Section 202 of title 23, 

10 United States Code (as amended by subsection (c)(5)), 

11 is amended by adding at the end the following: 

12 ‘‘(g) SAFETY.—Subject to paragraph (2), on October 

13 1 of each fiscal year, the Secretary shall allocate the sums 

14 authorized to be appropriated for the fiscal year for safety 

15 as follows: 

16 ‘‘(1) 12 percent to the Bureau of Reclamation. 

17 ‘‘(2) 18 percent to the Bureau of Indian Affairs. 

18 ‘‘(3) 17 percent to the Bureau of Land Manage19 ment. 

20 ‘‘(4) 17 percent to the Forest Service. 

21 ‘‘(5) 7 percent to the United States Fish and 

22 Wildlife Service. 

23 ‘‘(6) 17 percent to the National Park Service. 

24 ‘‘(7) 12 percent to the Corps of Engineers.’’. 
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1 (2) AVAILABILITY OF FUNDS.—Section 203 of 

2 title 23, United States Code, is amended by inserting 

3 ‘‘safety projects or activities,’’ after ‘‘refuge roads,’’ 

4 each place it appears. 

5 (3) USE OF FUNDING.—Section 204 of title 23, 

6 United States Code, is amended by adding at the end 

7 the following: 

8 ‘‘(l) SAFETY ACTIVITIES.— 

9 ‘‘(1) IN GENERAL.—Notwithstanding any other 

10 provision of this title, funds made available for safety 

11 under this title shall be used by the Secretary and the 

12 head of the appropriate Federal land management 

13 agency only to pay the costs of carrying out— 

14 ‘‘(A) transportation safety improvement ac15 tivities; 

16 ‘‘(B) activities to eliminate high-accident 

17 locations; 

18 ‘‘(C) projects to implement protective meas19 ures at, or eliminate, at-grade railway-highway 

20 crossings; 

21 ‘‘(D) collection of safety information; 

22 ‘‘(E) transportation planning projects or 

23 activities; 

24 ‘‘(F) bridge inspection; 
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1 ‘‘(G) development and operation of safety 

2 management systems; 

3 ‘‘(H) highway safety education programs; 

4 and 

5 ‘‘(I) other eligible safety projects and activi6 ties authorized under chapter 4. 

7 ‘‘(2) CONTRACTS.—In carrying out paragraph 

8 (1), the Secretary and the Secretary of the appro9 priate Federal land management agency may enter 

10 into contracts or agreements with— 

11 ‘‘(A) a State; 

12 ‘‘(B) a political subdivision of a State; or 

13 ‘‘(C) an Indian tribe. 

14 ‘‘(3) EXCEPTION.—The cost sharing requirements 

15 under the Federal Water Project Recreation Act (16 

16 U.S.C. 460l–12 et seq.) shall not apply to funds made 

17 available to the Bureau of Reclamation under this 

18 subsection.’’. 

19 (f) RECREATION ROADS.— 

20 (1) AUTHORIZATIONS.—Section 201 of title 23, 

21 United States Code, is amended in the first sentence 

22 by inserting ‘‘recreation roads,’’ after ‘‘public lands 

23 highways,’’. 
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1 (2) ALLOCATIONS.—Section 202 of title 23, 

2 United States Code (as amended by subsection (e)(1)), 

3 is amended by adding at the end the following: 

4 ‘‘(h) RECREATION ROADS.— 

5 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

6 and (3), on October 1 of each fiscal year, the Sec7 retary, after completing the transfer under subsection 

8 204(i), shall allocate the sums authorized to be appro9 priated for the fiscal year for recreation roads as fol10 lows: 

11 ‘‘(A) 8 percent to the Bureau of Reclama12 tion. 

13 ‘‘(B) 9 percent to the Corps of Engineers. 

14 ‘‘(C) 13 percent to the Bureau of Land 

15 Management. 

16 ‘‘(D) 70 percent to the Forest Service. 

17 ‘‘(2) ALLOCATION WITHIN AGENCIES.—Recre18 ation road funds allocated to a Federal agency under 

19 paragraph (1) shall be allocated for projects and ac20 tivities of the Federal agency according to the relative 

21 needs of each area served by recreation roads under 

22 the jurisdiction of the Federal agency, as indicated in 

23 the approved transportation improvement program 

24 for each Federal agency.’’. 
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1 (3) AVAILABILITY OF FUNDS.—Section 203 of 

2 title 23, United States Code, is amended— 

3 (A) in the first sentence, by inserting 

4 ‘‘recreation roads,’’ after ‘‘Indian reservation 

5 roads,’’; and 

6 (B) in the fourth sentence, by inserting ‘‘, 

7 recreation roads,’’ after ‘‘Indian roads’’. 

8 (4) USE OF FUNDING.—Section 204 of title 23, 

9 United States Code (as amended by subsection (e)(3)), 

10 is amended by adding at the end the following: 

11 ‘‘(m) RECREATION ROADS.— 

12 ‘‘(1) IN GENERAL.—Notwithstanding any other 

13 provision of this title, funds made available for recre14 ation roads under this title shall be used by the Sec15 retary and the Secretary of the appropriate Federal 

16 land management agency only to pay the cost of— 

17 ‘‘(A) maintenance or improvements of exist18 ing recreation roads; 

19 ‘‘(B) maintenance and improvements of eli20 gible projects described in paragraph (1), (2), 

21 (3), (5), or (6) of subsection (h) that are located 

22 in or adjacent to Federal land under the juris23 diction of— 

24 ‘‘(i) the Department of Agriculture; or 

25 ‘‘(ii) the Department of the Interior; 
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1 ‘‘(C) transportation planning and adminis2 trative activities associated with those mainte3 nance and improvements; and 

4 ‘‘(D) the non-Federal share of the cost of 

5 any project funded under this title or chapter 53 

6 of title 49 that provides access to or within Fed7 eral land described in subparagraph (B). 

8 ‘‘(2) CONTRACTS.—In carrying out paragraph 

9 (1), the Secretary and the Secretary of the appro10 priate Federal land management agency may enter 

11 into contracts or agreements with— 

12 ‘‘(A) a State; 

13 ‘‘(B) a political subdivision of a State; or 

14 ‘‘(C) an Indian tribe. 

15 ‘‘(3) NEW ROADS.—No funds made available 

16 under this section shall be used to pay the cost of the 

17 design or construction of new recreation roads. 

18 ‘‘(4) COMPLIANCE WITH OTHER ENVIRONMENTAL

19 LAWS.—A maintenance or improvement project that 

20 is funded under this subsection, and that is consistent 

21 with or has been identified in a land use plan for an 

22 area under the jurisdiction of a Federal agency, shall 

23 not require any additional environmental reviews or 

24 assessments under the National Environmental Policy 

25 Act of 1969 (42 U.S.C. 4321 et seq.) if— 
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1 ‘‘(A) the Federal agency that promulgated 

2 the land use plan analyzed the specific proposal 

3 for the maintenance or improvement project 

4 under that Act; and 

5 ‘‘(B) as of the date on which the funds are 

6 to be expended, there are— 

7 ‘‘(i) no significant changes to the pro8 posal bearing on environmental concerns; 

9 and 

10 ‘‘(ii) no significant new information. 

11 ‘‘(5) EXCEPTION.—The cost sharing requirements 

12 under the Federal Water Project Recreation Act (16 

13 U.S.C. 460l–12 et seq.) shall not apply to funds made 

14 available to the Bureau of Reclamation under this 

15 subsection.’’. 

16 (g) CONFORMING AMENDMENTS.— 

17 (1) Sections 120(e) and 125(e) of title 23, United 

18 States Code, are amended by striking ‘‘public lands 

19 highways,’’ each place it appears and inserting ‘‘pub20 lic lands highways, recreation roads,’’. 

21 (2) Sections 120(e), 125(e), 201, 202(a), and 203 

22 of title 23, United States Code, are amended by strik23 ing ‘‘forest development roads’’ each place it appears 

24 and inserting ‘‘National Forest System roads’’. 
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1 (3) Section 202(e) of title 23, United States 

2 Code, is amended by striking ‘‘Refuge System,’’ and 

3 inserting ‘‘Refuge System and the various national 

4 fish hatcheries,’’. 

5 (4) Section 204 of title 23, United States Code, 

6 is amended— 

7 (A) in subsection (a)(1), by striking ‘‘public 

8 lands highways,’’ and inserting ‘‘public lands 

9 highways, recreation roads, forest highways,’’; 

10 and 

11 (B) in subsection (i), by striking ‘‘public 

12 lands highways’’ each place it appears and in13 serting ‘‘public lands highways, recreation roads, 

14 and forest highways’’. 

15 (5) Section 205 of title 23, United States Code, 

16 is amended— 

17 (A) by striking the section heading and in18 serting the following: 

19 ‘‘§ 205. National Forest System roads and trails’’; 

20 and 

21 (B) in subsections (a) and (d), by striking 

22 ‘‘forest development roads’’ each place it appears 

23 and inserting ‘‘National Forest System roads’’. 
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1 (6) The analysis for chapter 2 of title 23, United 

2 States Code, is amended by striking the item relating 

3 to section 205 and inserting the following: 

‘‘205. National Forest System roads and trails.’’. 

4 (7) Section 217(c) of title 23, United States 

5 Code, is amended by inserting ‘‘refuge roads,’’ after 

6 ‘‘Indian reservation roads,’’. 

7 SEC. 1807. HIGHWAY BRIDGE PROGRAM. 

8 (a) IN GENERAL.—Section 144 of title 23, United 

9 States Code, is amended— 

10 (1) by striking the section heading and all that 

11 follows through subsection (a) and inserting the fol12 lowing: 

13 ‘‘§ 144. Highway bridge program 

14 ‘‘(a) CONGRESSIONAL STATEMENT.—Congress finds 

15 and declares that it is in the vital interest of the United 

16 States that a highway bridge program be established to en17 able States to improve the condition of their bridges through 

18 replacement, rehabilitation, and systematic preventative 

19 maintenance on highway bridges over waterways, other top20 ographical barriers, other highways, or railroads at any 

21 time at which the States and the Secretary determine that 

22 a bridge is unsafe because of structural deficiencies, phys23 ical deterioration, or functional obsolescence.’’; 

24 (2) by striking subsection (d) and inserting the 

25 following: 
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1 ‘‘(d) PARTICIPATION IN PROGRAM.— 

2 ‘‘(1) IN GENERAL.—On application by a State to 

3 the Secretary for assistance in replacing or rehabili4 tating a highway bridge that has been determined to 

5 be eligible for replacement or rehabilitation under 

6 subsection (b) or (c), the Secretary may approve Fed7 eral participation in— 

8 ‘‘(A) replacing the bridge with a com9 parable bridge; or 

10 ‘‘(B) rehabilitating the bridge. 

11 ‘‘(2) SPECIFIC KINDS OF REHABILITATION.—On 

12 application by a State to the Secretary for assistance 

13 in painting, seismic retrofit, or preventative mainte14 nance of, or installation of scour countermeasures or 

15 applying calcium magnesium acetate, sodium acetate/ 

16 formate, or other environmentally acceptable, mini17 mally corrosive anti-icing and de-icing compositions 

18 to, the structure of a highway bridge, the Secretary 

19 may approve Federal participation in the painting, 

20 seismic retrofit, or preventative maintenance of, or 

21 installation of scour countermeasures or application 

22 of acetate or sodium acetate/formate or such anti23 icing or de-icing composition to, the structure. 

24 ‘‘(3) ELIGIBILITY.— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the Secretary shall determine 

3 the eligibility of highway bridges for replacement 

4 or rehabilitation for each State based on the 

5 number of unsafe highway bridges in the State. 

6 ‘‘(B) PREVENTATIVE MAINTENANCE.—A 

7 State may carry out a project for preventative 

8 maintenance on a bridge, seismic retrofit of a 

9 bridge, or installation of scour countermeasures 

10 to a bridge under this section without regard to 

11 whether the bridge is eligible for replacement or 

12 rehabilitation under this section.’’; 

13 (3) in subsection (e)— 

14 (A) in the third sentence, by striking 

15 ‘‘square footage’’ and inserting ‘‘area’’; 

16 (B) in the fourth sentence— 

17 (i) by striking ‘‘by the total cost of any 

18 highway bridges constructed under sub19 section (m) in such State, relating to re20 placement of destroyed bridges and ferry21 boat services, and,’’; and 

22 (ii) by striking ‘‘1997’’ and inserting 

23 ‘‘2003’’; and 
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1 (C) in the seventh sentence, by striking ‘‘the 

2 Federal-aid primary system’’ and inserting 

3 ‘‘Federal-aid highways’’; 

4 (4) by striking subsections (f) and (g) and in5 serting the following: 

6 ‘‘(f) SET ASIDES.— 

7 ‘‘(1) DISCRETIONARY BRIDGE PROGRAM.— 

8 ‘‘(A) IN GENERAL.—Of the amounts author9 ized to be appropriated to carry out the bridge 

10 program under this section for each of fiscal 

11 years 2004 through 2009, all but $150,000,000 

12 shall be apportioned as provided in subsection 

13 (e). 

14 ‘‘(B) AVAILABILITY.—The $150,000,000 re15 ferred to in subparagraph (A) shall be available 

16 at the discretion of the Secretary, except that not 

17 to exceed $25,000,000 of that amount shall be 

18 available only for projects for the seismic retrofit 

19 of bridges. 

20 ‘‘(C) SET ASIDES.—For fiscal year 2004, 

21 the Secretary shall provide— 

22 ‘‘(i) $50,000,000 to the State of Nevada 

23 for construction of a replacement of the fed24 erally-owned bridge over the Hoover Dam 
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1 in the Lake Mead National Recreation 

2 Area; and 

3 ‘‘(ii) $50,000,000 to the State of Mis4 souri for construction of a structure over the 

5 Mississippi River to connect the city of St. 

6 Louis, Missouri, to the State of Illinois. 

7 ‘‘(2) OFF-SYSTEM BRIDGES.— 

8 ‘‘(A) IN GENERAL.—Not less than 15 per9 cent of the amount apportioned to each State in 

10 each of fiscal years 2004 through 2009 shall be 

11 expended for projects to replace, rehabilitate, per12 form systematic preventative maintenance or 

13 seismic retrofit, or apply calcium magnesium ac14 etate, sodium acetate/formate, or other environ15 mentally acceptable, minimally corrosive anti16 icing and de-icing compositions or install scour 

17 countermeasures to highway bridges located on 

18 public roads, other than those on a Federal-aid 

19 highway, or to complete the Warwick Intermodal 

20 Station (including the construction of a people 

21 mover between the Station and the T.F. Green 

22 Airport). 

23 ‘‘(B) REDUCTION OF EXPENDITURES.—The 

24 Secretary, after consultation with State and 

25 local officials, may, with respect to the State, re-
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1 duce the requirement for expenditure for bridges 

2 not on a Federal-aid highway if the Secretary 

3 determines that the State has inadequate needs 

4 to justify the expenditure.’’; 

5 (5) in subsection (i)— 

6 (A) in paragraph (3), by striking ‘‘and’’; 

7 (B) in paragraph (4), by striking the period 

8 at the end and inserting ‘‘; and’’; 

9 (C) by striking ‘‘Such reports’’ and all that 

10 follows through ‘‘to Congress.’’; and 

11 (D) by adding at the end the following: 

12 ‘‘(5) biennially submit such reports as are re13 quired under this subsection to the appropriate com14 mittees of Congress simultaneously with the report re15 quired by section 502(g).’’; 

16 (6) in the first sentence of subsection (n), by 

17 striking ‘‘all standards’’ and inserting ‘‘all general 

18 engineering standards’’; 

19 (7) in subsection (o)— 

20 (A) in paragraph (3)— 

21 (i) by striking ‘‘title (including this 

22 section)’’ and inserting ‘‘section’’; and 

23 (ii) by inserting ‘‘200 percent of’’ after 

24 ‘‘shall not exceed’’; and 

25 (B) in paragraph (4)(B)— 
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1 (i) in the second sentence, by inserting 

2 ‘‘200 percent of’’ after ‘‘not to exceed’’; and 

3 (ii) in the last sentence, by striking 

4 ‘‘title’’ and inserting ‘‘section’’; 

5 (8) by redesignating subsections (h) through (q) 

6 as subsections (g) through (p), respectively; and 

7 (9) by adding at the end the following: 

8 ‘‘(q) CONTINUATION OF ANNUAL MATERIALS REPORT

9 ON NEW BRIDGE CONSTRUCTION AND BRIDGE REHABILI10 TATION.—Not later than 1 year after the date of enactment 

11 of this subsection, and annually thereafter, the Secretary 

12 shall publish in the Federal Register a report describing 

13 construction materials used in new Federal-aid bridge con14 struction and bridge rehabilitation projects. 

15 ‘‘(r) FEDERAL SHARE.—The Federal share of the cost 

16 of a project payable from funds made available to carry 

17 out this section shall be the share applicable under section 

18 120(b), as adjusted under subsection (d) of that section.’’. 

19 (b) CONFORMING AMENDMENT.—The analysis for sub20 chapter I of chapter 1 of title 23, United States Code, is 

21 amended by striking the item relating to section 144 and 

22 inserting the following: 

‘‘144. Highway bridge program.’’. 
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1 SEC. 1808. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM. 

2 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

3 23, United States Code (as amended by section 1702(a)), 

4 is amended by adding at the end the following: 

5 ‘‘§ 170. Appalachian development highway system 

6 ‘‘(a) APPORTIONMENT.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall appor8 tion funds made available under section 1101(7) of 

9 the Safe, Accountable, Flexible, and Efficient Trans10 portation Equity Act of 2004 for fiscal years 2004 

11 through 2009 among States based on the latest avail12 able estimate of the cost to construct highways and 

13 access roads for the Appalachian development high14 way system program prepared by the Appalachian 

15 Regional Commission under section 14501 of title 40. 

16 ‘‘(2) AVAILABILITY.—Funds described in para17 graph (1) shall be available to construct highways 

18 and access roads under chapter 145 of title 40. 

19 ‘‘(b) APPLICABILITY OF TITLE.—Funds made avail20 able under section 1101(7) of the Safe, Accountable, Flexi21 ble, and Efficient Transportation Equity Act of 2004 for 

22 the Appalachian development highway system shall be 

23 available for obligation in the same manner as if the funds 

24 were apportioned under this chapter, except that— 
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1 ‘‘(1) the Federal share of the cost of any project 

2 under this section shall be determined in accordance 

3 with subtitle IV of title 40; and 

4 ‘‘(2) the funds shall remain available until ex5 pended.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) USE OF TOLL CREDITS.—Section 120(j)(1) of 

8 title 23, United States Code is amended by inserting 

9 ‘‘and the Appalachian development highway system 

10 program under subtitle IV of title 40’’ after ‘‘(other 

11 than the emergency relief program authorized by sec12 tion 125’’. 

13 (2) ANALYSIS.—The analysis of chapter 1 of title 

14 23, United States Code (as amended by section 

15 1702(b)), is amended by adding at the end the fol16 lowing: 

‘‘170. Appalachian development highway system.’’. 

17 SEC. 1809. MULTISTATE CORRIDOR PROGRAM. 

18 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

19 23, United States Code (as amended by 1808(a)), is amend20 ed by adding at the end the following: 

21 ‘‘§ 171. Multistate corridor program 

22 ‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary 

23 shall carry out a program to— 

24 ‘‘(1) support and encourage multistate transpor25 tation planning and development; and 
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1 ‘‘(2) facilitate transportation decisionmaking 

2 and coordinate project delivery involving multistate 

3 corridors. 

4 ‘‘(b) ELIGIBLE RECIPIENTS.—A State transportation 

5 department and a metropolitan planning organization may 

6 receive and administer funds provided under this section. 

7 ‘‘(c) ELIGIBLE ACTIVITIES.—The Secretary shall make 

8 allocations under this program for multistate highway and 

9 multimodal planning studies and construction. 

10 ‘‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY.— 

11 ‘‘(1) STUDIES.—All studies funded under this 

12 program shall be consistent with the continuing, coop13 erative, and comprehensive planning processes re14 quired by sections 134 and 135. 

15 ‘‘(2) CONSTRUCTION.—All construction funded 

16 under this program shall be consistent with section 

17 133(b)(1). 

18 ‘‘(e) SELECTION CRITERIA.—The Secretary shall select 

19 studies and projects to be carried out under the program 

20 based on— 

21 ‘‘(1) the existence and significance of signed and 

22 binding multijurisdictional agreements; 

23 ‘‘(2) endorsement of the study or project by ap24 plicable elected State and local representatives; 
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1 ‘‘(3) prospects for early completion of the study 

2 or project; or 

3 ‘‘(4) whether the projects to be studied or con4 structed are located on corridors identified by section 

5 1105(c) of the Intermodal Surface Transportation Ef6 ficiency Act of 1991 (Public Law 102-240; 105 Stat. 

7 2032). 

8 ‘‘(f) PROGRAM PRIORITIES.—In administering the 

9 program, the Secretary shall— 

10 ‘‘(1) encourage and enable States and other ju11 risdictions to work together to develop plans for 

12 multimodal and multijurisdictional transportation 

13 decisionmaking; and 

14 ‘‘(2) give priority to studies or projects that em15 phasize multimodal planning, including planning for 

16 operational improvements that— 

17 ‘‘(A) increase— 

18 ‘‘(i) mobility; 

19 ‘‘(ii) freight productivity; 

20 ‘‘(iii) access to marine or inland ports; 

21 ‘‘(iv) safety and security; and 

22 ‘‘(v) reliability; and 

23 ‘‘(B) enhance the environment. 

24 ‘‘(g) FEDERAL SHARE.—Except as provided in section 

25 120, the Federal share of the cost of a study or project car-
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1 ried out under the program, using funds from all Federal 

2 sources, shall be 80 percent. 

3 ‘‘(h) APPLICABILITY.—Funds authorized to be appro4 priated under section 1101(10) of the Safe, Accountable, 

5 Flexible, and Efficient Transportation Equity Act of 2004 

6 to carry out this section shall be available for obligation 

7 in the same manner as if the funds were apportioned under 

8 this chapter.’’. 

9 (b) CONFORMING AMENDMENT.—The analysis for sub10 chapter I of chapter 1 of title 23, United States Code (as 

11 amended by section 1809(b)) is amended by adding at the 

12 end the following: 

‘‘171. Multistate corridor program.’’. 

13 SEC. 1810. BORDER PLANNING, OPERATIONS, TECHNOLOGY, 

14 AND CAPACITY PROGRAM. 

15 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

16 23, United States Code (as amended by section 1809(a)), 

17 is amended by adding at the end the following: 

18 ‘‘§ 172. Border planning, operations, technology, and 

19 capacity program 

20 ‘‘(a) DEFINITIONS.—In this section: 

21 ‘‘(1) BORDER STATE.—The term ‘border State’ 

22 means any of the States of Alaska, Arizona, Cali23 fornia, Idaho, Maine, Michigan, Minnesota, Montana, 

24 New Hampshire, New Mexico, New York, North Da25 kota, Texas, Vermont, and Washington. 
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1 ‘‘(2) PROGRAM.—The term ‘program’ means the 

2 border planning, operations, technology, and capacity 

3 program established under subsection (b). 

4 ‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary 

5 shall establish and carry out a border planning, operations, 

6 technology, and capacity improvement program to support 

7 coordination and improvement in bi-national transpor8 tation planning, operations, efficiency, information ex9 change, safety, and security at the international borders of 

10 the United States with Canada and Mexico. 

11 ‘‘(c) ELIGIBLE ACTIVITIES.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall make al13 locations under the program for projects to carry out 

14 eligible activities described in paragraph (2) at or 

15 near international land borders in border States. 

16 ‘‘(2) ELIGIBLE ACTIVITIES.—A border State may 

17 obligate funds apportioned to the border State under 

18 this section for— 

19 ‘‘(A) highway and multimodal planning or 

20 environmental studies; 

21 ‘‘(B) cross-border port of entry and safety 

22 inspection improvements, including operational 

23 enhancements and technology applications; 

24 ‘‘(C) technology and information exchange 

25 activities; and 
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1 ‘‘(D) right-of-way acquisition, design, and 

2 construction, as needed— 

3 ‘‘(i) to implement the enhancements or 

4 applications described in subparagraphs 

5 (B) and (C); 

6 ‘‘(ii) to decrease air pollution emis7 sions from vehicles or inspection facilities at 

8 border crossings; or 

9 ‘‘(iii) to increase highway capacity at 

10 or near international borders. 

11 ‘‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY.— 

12 ‘‘(1) IN GENERAL.—Each project funded under 

13 the program shall be carried out in accordance with 

14 the continuing, cooperative, and comprehensive plan15 ning processes required by sections 134 and 135. 

16 ‘‘(2) REGIONALLY SIGNIFICANT PROJECTS.—To 

17 be funded under the program, a regionally significant 

18 project shall be included on the applicable transpor19 tation plan and program required by sections 134 

20 and 135. 

21 ‘‘(e) PROGRAM PRIORITIES.—Border States shall give 

22 priority to projects that emphasize— 

23 ‘‘(1) multimodal planning; 

24 ‘‘(2) improvements in infrastructure; and 

25 ‘‘(3) operational improvements that— 
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1 ‘‘(A) increase safety, security, freight capac2 ity, or highway access to rail, marine, and air 

3 services; and 

4 ‘‘(B) enhance the environment. 

5 ‘‘(f) MANDATORY PROGRAM.— 

6 ‘‘(1) IN GENERAL.—For each fiscal year, the Sec7 retary shall allocate among border States, in accord8 ance with the formula described in paragraph (2), 

9 funds to be used in accordance with subsection (d). 

10 ‘‘(2) FORMULA.—Subject to paragraph (3), the 

11 amount allocated to a border State under this para12 graph shall be determined by the Secretary, as fol13 lows: 

14 ‘‘(A) 25 percent in the ratio that— 

15 ‘‘(i) the average annual weight of all 

16 cargo entering the border State by commer17 cial vehicle across the international border 

18 with Canada or Mexico, as the case may be; 

19 bears to 

20 ‘‘(ii) the average annual weight of all 

21 cargo entering all border States by commer22 cial vehicle across the international borders 

23 with Canada and Mexico. 

24 ‘‘(B) 25 percent in the ratio that— 
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1 ‘‘(i) the average trade value of all 

2 cargo imported into the border State and 

3 all cargo exported from the border State by 

4 commercial vehicle across the international 

5 border with Canada or Mexico, as the case 

6 may be; bears to 

7 ‘‘(ii) the average trade value of all 

8 cargo imported into all border States and 

9 all cargo exported from all border States by 

10 commercial vehicle across the international 

11 borders with Canada and Mexico. 

12 ‘‘(C) 25 percent in the ratio that— 

13 ‘‘(i) the number of commercial vehicles 

14 annually entering the border State across 

15 the international border with Canada or 

16 Mexico, as the case may be; bears to 

17 ‘‘(ii) the number of all commercial ve18 hicles annually entering all border States 

19 across the international borders with Can20 ada and Mexico. 

21 ‘‘(D) 25 percent in the ratio that— 

22 ‘‘(i) the number of passenger vehicles 

23 annually entering the border State across 

24 the international border with Canada or 

25 Mexico, as the case may be; bears to 
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1 ‘‘(ii) the number of all passenger vehi2 cles annually entering all border States 

3 across the international borders with Can4 ada and Mexico. 

5 ‘‘(3) DATA SOURCE.— 

6 ‘‘(A) IN GENERAL.—The data used by the 

7 Secretary in making allocations under this sub8 section shall be based on the Bureau of Trans9 portation Statistics Transborder Surface Freight 

10 Dataset (or other similar database). 

11 ‘‘(B) BASIS OF CALCULATION.—All formula 

12 calculations shall be made using the average val13 ues for the most recent 5-year period for which 

14 data are available. 

15 ‘‘(4) MINIMUM ALLOCATION.—Notwithstanding 

16 paragraph (2), for each fiscal year, each border State 

shall receive at least 1 17 ⁄2 of 1 percent of the funds made 

18 available for allocation under this paragraph for the 

19 fiscal year. 

20 ‘‘(g) FEDERAL SHARE.—Except as provided in section 

21 120, the Federal share of the cost of a project carried out 

22 under the program shall be 80 percent. 

23 ‘‘(h) OBLIGATION.—Funds made available under sec24 tion 1101(11) of the Safe, Accountable, Flexible, and Effi25 cient Transportation Equity Act of 2004 to carry out the 
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1 program shall be available for obligation in the same man2 ner as if the funds were apportioned under this chapter. 

3 ‘‘(i) INFORMATION EXCHANGE.—No individual project 

4 the scope of work of which is limited to information ex5 change shall receive an allocation under the program in an 

6 amount that exceeds $500,000 for any fiscal year. 

7 ‘‘(j) PROJECTS IN CANADA OR MEXICO.—A project in 

8 Canada or Mexico, proposed by a border State to directly 

9 and predominantly facilitate cross-border vehicle and com10 mercial cargo movements at an international gateway or 

11 port of entry into the border region of the State, may be 

12 constructed using funds made available under the program 

13 if, before obligation of those funds, Canada or Mexico, or 

14 the political subdivision of Canada or Mexico that is re15 sponsible for the operation of the facility to be constructed, 

16 provides assurances satisfactory to the Secretary that any 

17 facility constructed under this subsection will be— 

18 ‘‘(1) constructed in accordance with standards 

19 equivalent to applicable standards in the United 

20 States; and 

21 ‘‘(2) properly maintained and used over the use22 ful life of the facility for the purpose for which the 

23 Secretary allocated funds to the project. 

24 ‘‘(k) TRANSFER OF FUNDS TO THE GENERAL SERV25 ICES ADMINISTRATION.— 
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1 ‘‘(1) STATE FUNDS.—At the request of a border 

2 State, funds made available under the program may 

3 be transferred to the General Services Administration 

4 for the purpose of funding 1 or more specific projects 

5 if— 

6 ‘‘(A) the Secretary determines, after con7 sultation with the State transportation depart8 ment of the border State, that the General Serv9 ices Administration should carry out the project; 

10 and 

11 ‘‘(B) the General Services Administration 

12 agrees to accept the transfer of, and to admin13 ister, those funds. 

14 ‘‘(2) NON-FEDERAL SHARE.— 

15 ‘‘(A) IN GENERAL.—A border State that 

16 makes a request under paragraph (1) shall pro17 vide directly to the General Services Administra18 tion, for each project covered by the request, the 

19 non-Federal share of the cost of each project de20 scribed in subsection (f). 

21 ‘‘(B) NO AUGMENTATION OF APPROPRIA22 TIONS.—Funds provided by a border State under 

23 subparagraph (A)— 

24 ‘‘(i) shall not be considered to be an 

25 augmentation of the appropriations made 
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1 available to the General Services Adminis2 tration; and 

3 ‘‘(ii) shall be— 

4 ‘‘(I) administered in accordance 

5 with the procedures of the General 

6 Services Administration; but 

7 ‘‘(II) available for obligation in 

8 the same manner as if the funds were 

9 apportioned under this chapter. 

10 ‘‘(C) OBLIGATION AUTHORITY.—Obligation 

11 authority shall be transferred to the General 

12 Services Administration in the same manner 

13 and amount as the funds provided for projects 

14 under subparagraph (A). 

15 ‘‘(3) DIRECT TRANSFER OF AUTHORIZED

16 FUNDS.— 

17 ‘‘(A) IN GENERAL.—In addition to alloca18 tions to States and metropolitan planning orga19 nizations under subsection (c), the Secretary 

20 may transfer funds made available to carry out 

21 this section to the General Services Administra22 tion for construction of transportation infra23 structure projects at or near the border in border 

24 States, if— 
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1 ‘‘(i) the Secretary determines that the 

2 transfer is necessary to effectively carry out 

3 the purposes of this program; and 

4 ‘‘(ii) the General Services Administra5 tion agrees to accept the transfer of, and to 

6 administer, those funds. 

7 ‘‘(B) NO AUGMENTATION OF APPROPRIA8 TIONS.—Funds transferred by the Secretary 

9 under subparagraph (A)— 

10 ‘‘(i) shall not be considered to be an 

11 augmentation of the appropriations made 

12 available to the General Services Adminis13 tration; and 

14 ‘‘(ii) shall be— 

15 ‘‘(I) administered in accordance 

16 with the procedures of the General 

17 Services Administration; but 

18 ‘‘(II) available for obligation in 

19 the same manner as if the funds were 

20 apportioned under this chapter. 

21 ‘‘(C) OBLIGATION AUTHORITY.—Obligation 

22 authority shall be transferred to the General 

23 Services Administration in the same manner 

24 and amount as the funds transferred under sub25 paragraph (A).’’. 
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1 (b) CONFORMING AMENDMENT.—The analysis for sub2 chapter I of chapter 1 of title 23, United States Code (as 

3 amended by section 1809(b)), is amended by adding at the 

4 end the following: 

‘‘172. Border planning, operations, and technology program.’’. 

5 SEC. 1811. PUERTO RICO HIGHWAY PROGRAM. 

6 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

7 23, United States Code (as amended by section 1810(a)), 

8 is amended by adding at the end the following: 

9 ‘‘§ 173. Puerto Rico highway program 

10 ‘‘(a) IN GENERAL.—The Secretary shall allocate funds 

11 authorized by section 1101(15) of the Safe, Accountable, 

12 Flexible, and Efficient Transportation Equity Act of 2004 

13 for each of fiscal years 2004 through 2009 to the Common14 wealth of Puerto Rico to carry out a highway program in 

15 the Commonwealth. 

16 ‘‘(b) APPLICABILITY OF TITLE.— 

17 ‘‘(1) IN GENERAL.—Amounts made available by 

18 section 1101(15) of the Safe, Accountable, Flexible, 

19 and Efficient Transportation Equity Act of 2004 

20 shall be available for obligation in the same manner 

21 as if such funds were apportioned under this chapter. 

22 ‘‘(2) LIMITATION ON OBLIGATIONS.—The 

23 amounts shall be subject to any limitation on obliga24 tions for Federal-aid highway and highway safety 

25 construction programs. 
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1 ‘‘(c) TREATMENT OF FUNDS.—Amounts made avail2 able to carry out this section for a fiscal year shall be ad3 ministered as follows: 

4 ‘‘(1) APPORTIONMENT.—For the purpose of im5 posing any penalty under this title or title 49, the 

6 amounts shall be treated as being apportioned to 

7 Puerto Rico under sections 104(b) and 144, for each 

8 program funded under those sections in an amount 

9 determined by multiplying— 

10 ‘‘(A) the aggregate of the amounts for the 

11 fiscal year; by 

12 ‘‘(B) the ratio that— 

13 ‘‘(i) the amount of funds apportioned 

14 to Puerto Rico for each such program for 

15 fiscal year 1997; bears to 

16 ‘‘(ii) the total amount of funds appor17 tioned to Puerto Rico for all such programs 

18 for fiscal year 1997. 

19 ‘‘(2) PENALTY.—The amounts treated as being 

20 apportioned to Puerto Rico under each section re21 ferred to in paragraph (1) shall be deemed to be re22 quired to be apportioned to Puerto Rico under that 

23 section for purposes of the imposition of any penalty 

24 under this title and title 49. 
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1 ‘‘(3) EFFECT ON ALLOCATIONS AND APPORTION2 MENTS.—Subject to paragraph (2), nothing in this 

3 section affects any allocation under section 105 and 

4 any apportionment under sections 104 and 144.’’. 

5 (b) CONFORMING AMENDMENT.—The analysis for sub6 chapter I of chapter 1 of title 23, United States Code (as 

7 amended by section 1810(b)), is amended by adding at the 

8 end the following: 

‘‘173. Puerto Rico highway program.’’. 

9 SEC. 1812. NATIONAL HISTORIC COVERED BRIDGE PRESER10 VATION. 

11 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

12 23, United States Code (as amended by section 1811(a)), 

13 is amended by adding at the end the following: 

14 ‘‘§ 174. National historic covered bridge preservation 

15 ‘‘(a) DEFINITION OF HISTORIC COVERED BRIDGE.— 

16 In this section, the term ‘historic covered bridge’ means a 

17 covered bridge that is listed or eligible for listing on the 

18 National Register of Historic Places. 

19 ‘‘(b) HISTORIC COVERED BRIDGE PRESERVATION.— 

20 Subject to the availability of appropriations, the Secretary 

21 shall— 

22 ‘‘(1) collect and disseminate information on his23 toric covered bridges; 
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1 ‘‘(2) conduct educational programs relating to 

2 the history and construction techniques of historic 

3 covered bridges; 

4 ‘‘(3) conduct research on the history of historic 

5 covered bridges; and 

6 ‘‘(4) conduct research on, and study techniques 

7 for, protecting historic covered bridges from rot, fire, 

8 natural disasters, or weight-related damage. 

9 ‘‘(c) GRANTS.— 

10 ‘‘(1) IN GENERAL.—Subject to the availability of 

11 appropriations, the Secretary shall make a grant to 

12 a State that submits an application to the Secretary 

13 that demonstrates a need for assistance in carrying 

14 out 1 or more historic covered bridge projects de15 scribed in paragraph (2). 

16 ‘‘(2) ELIGIBLE PROJECTS.—A grant under para17 graph (1) may be made for a project— 

18 ‘‘(A) to rehabilitate or repair a historic cov19 ered bridge; or 

20 ‘‘(B) to preserve a historic covered bridge, 

21 including through— 

22 ‘‘(i) installation of a fire protection 

23 system, including a fireproofing or fire de24 tection system and sprinklers; 
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1 ‘‘(ii) installation of a system to pre2 vent vandalism and arson; or 

3 ‘‘(iii) relocation of a bridge to a pres4 ervation site. 

5 ‘‘(3) AUTHENTICITY REQUIREMENTS.—A grant 

6 under paragraph (1) may be made for a project only 

7 if— 

8 ‘‘(A) to the maximum extent practicable, the 

9 project— 

10 ‘‘(i) is carried out in the most histori11 cally appropriate manner; and 

12 ‘‘(ii) preserves the existing structure of 

13 the historic covered bridge; and 

14 ‘‘(B) the project provides for the replace15 ment of wooden components with wooden compo16 nents, unless the use of wood is impracticable for 

17 safety reasons. 

18 ‘‘(4) FEDERAL SHARE.—Except as provided in 

19 section 120, the Federal share of the cost of a project 

20 carried out with a grant under this subsection shall 

21 be 80 percent. 

22 ‘‘(d) FUNDING.—There is authorized to be appro23 priated to carry out this section $14,000,000 for each of 

24 fiscal years 2004 through 2009, to remain available until 

25 expended.’’. 
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1 (b) CONFORMING AMENDMENT.—The analysis for sub2 chapter I of chapter 1 of title 23, United States Code (as 

3 amended by section 1811(b)), is amended by adding at the 

4 end the following: 

‘‘174. National historic covered bridge preservation.’’. 

5 SEC. 1813. TRANSPORTATION AND COMMUNITY AND SYS6 TEM PRESERVATION PROGRAM. 

7 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

8 23, United States Code (as amended by section 1812(a)), 

9 is amended by adding at the end the following: 

10 ‘‘§ 175. Transportation and community and system 

11 preservation program 

12 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish 

13 a comprehensive program to facilitate the planning, devel14 opment, and implementation of strategies by States, metro15 politan planning organizations, federally-recognized Indian 

16 tribes, and local governments to integrate transportation, 

17 community, and system preservation plans and practices 

18 that address the goals described in subsection (b). 

19 ‘‘(b) GOALS.—The goals of the program are to— 

20 ‘‘(1) improve the efficiency of the transportation 

21 system in the United States; 

22 ‘‘(2) reduce the impacts of transportation on the 

23 environment; 

24 ‘‘(3) reduce the need for costly future investments 

25 in public infrastructure; 
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1 ‘‘(4) provide efficient access to jobs, services, and 

2 centers of trade; and 

3 ‘‘(5) examine development patterns, and to iden4 tify strategies, to encourage private sector develop5 ment patterns that achieve the goals identified in 

6 paragraphs (1) through (4). 

7 ‘‘(c) ALLOCATION OF FUNDS FOR IMPLEMENTATION.— 

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

9 funds made available to carry out this subsection to 

10 States, metropolitan planning organizations, and 

11 local governments to carry out projects to address 

12 transportation efficiency and community and system 

13 preservation. 

14 ‘‘(2) CRITERIA.—In allocating funds made avail15 able to carry out this subsection, the Secretary shall 

16 give priority to applicants that— 

17 ‘‘(A) have instituted preservation or devel18 opment plans and programs that— 

19 ‘‘(i) meet the requirements of this title 

20 and chapter 53 of title 49, United States 

21 Code; and 

22 ‘‘(ii)(I) are coordinated with State and 

23 local adopted preservation or development 

24 plans; 
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1 ‘‘(II) are intended to promote cost-ef2 fective and strategic investments in trans3 portation infrastructure that minimize ad4 verse impacts on the environment; or 

5 ‘‘(III) are intended to promote innova6 tive private sector strategies. 

7 ‘‘(B) have instituted other policies to inte8 grate transportation and community and system 

9 preservation practices, such as— 

10 ‘‘(i) spending policies that direct funds 

11 to high-growth areas; 

12 ‘‘(ii) urban growth boundaries to guide 

13 metropolitan expansion; 

14 ‘‘(iii) ‘green corridors’ programs that 

15 provide access to major highway corridors 

16 for areas targeted for efficient and compact 

17 development; or 

18 ‘‘(iv) other similar programs or poli19 cies as determined by the Secretary; 

20 ‘‘(C) have preservation or development poli21 cies that include a mechanism for reducing po22 tential impacts of transportation activities on 

23 the environment; 
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1 ‘‘(D) examine ways to encourage private 

2 sector investments that address the purposes of 

3 this section; and 

4 ‘‘(E) propose projects for funding that ad5 dress the purposes described in subsection (b)(2). 

6 ‘‘(3) EQUITABLE DISTRIBUTION.—In allocating 

7 funds to carry out this subsection, the Secretary shall 

8 ensure the equitable distribution of funds to a diver9 sity of populations and geographic regions. 

10 ‘‘(4) USE OF ALLOCATED FUNDS.— 

11 ‘‘(A) IN GENERAL.—An allocation of funds 

12 made available to carry out this subsection shall 

13 be used by the recipient to implement the 

14 projects proposed in the application to the Sec15 retary. 

16 ‘‘(B) TYPES OF PROJECTS.—The allocation 

17 of funds shall be available for obligation for— 

18 ‘‘(i) any project eligible for funding 

19 under this title or chapter 53 of title 49, 

20 United States Code; or 

21 ‘‘(ii) any other activity relating to 

22 transportation and community and system 

23 preservation that the Secretary determines 

24 to be appropriate, including corridor pres-
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1 ervation activities that are necessary to im2 plement— 

3 ‘‘(I) transit-oriented development 

4 plans; 

5 ‘‘(II) traffic calming measures; or 

6 ‘‘(III) other coordinated transpor7 tation and community and system 

8 preservation practices. 

9 ‘‘(d) FUNDING.— 

10 ‘‘(1) IN GENERAL.—There is authorized to be ap11 propriated from the Highway Trust Fund (other than 

12 the Mass Transit Account) to carry out this section 

13 $50,000,000 for each of fiscal years 2004 through 

14 2009. 

15 ‘‘(2) CONTRACT AUTHORITY.—Funds authorized 

16 under this subsection shall be available for obligation 

17 in the same manner as if the funds were apportioned 

18 under this chapter.’’. 

19 (b) ELIGIBLE PROJECTS.—Section 133(b) of title 23, 

20 United States Code (as amended by section 1701(a)), is 

21 amended by adding at the end the following: 

22 ‘‘(18) Transportation and community system 

23 preservation to facilitate the planning, development, 

24 and implementation of strategies of metropolitan 

25 planning organizations and local governments to in-
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1 tegrate transportation, community, and system pres2 ervation plans and practices that address the fol3 lowing: 

4 ‘‘(A) Improvement of the efficiency of the 

5 transportation system in the United States. 

6 ‘‘(B) Reduction of the impacts of transpor7 tation on the environment. 

8 ‘‘(C) Reduction of the need for costly future 

9 investments in public infrastructure. 

10 ‘‘(D) Provision of efficient access to jobs, 

11 services, and centers of trade. 

12 ‘‘(E) Examination of development patterns, 

13 and identification of strategies to encourage pri14 vate sector development patterns, that achieve the 

15 goals identified in subparagraphs (A) through 

16 (D). 

17 ‘‘(19) Projects relating to intersections, including 

18 intersections— 

19 ‘‘(A) that— 

20 ‘‘(i) have disproportionately high acci21 dent rates; 

22 ‘‘(ii) have high levels of congestion, as 

23 evidenced by— 

24 ‘‘(I) interrupted traffic flow at the 

25 intersection; and 
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1 ‘‘(II) a level of service rating, 

2 issued by the Transportation Research 

3 Board of the National Academy of 

4 Sciences in accordance with the High5 way Capacity Manual, that is not bet6 ter than ‘F’ during peak travel hours; 

7 and 

8 ‘‘(iii) are directly connected to or lo9 cated on a Federal-aid highway; and 

10 ‘‘(B) improvements that are approved in the 

11 regional plan of the appropriate local metropoli12 tan planning organization.’’. 

13 (c) CONFORMING AMENDMENT.—The analysis for sub14 chapter I of chapter 1 of title 23, United States Code (as 

15 amended by section 1812(b)), is amended by adding at the 

16 end the following: 

‘‘175. Transportation and community and system preservation pilot program.’’. 

17 SEC. 1814. PARKING PILOT PROGRAMS. 

18 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

19 23, United States Code (as amended by section 1813(a)), 

20 is amended by adding at the end the following: 

21 ‘‘§ 176. Parking pilot programs 

22 ‘‘(a) COMMERCIAL TRUCK PARKING PILOT PRO23 GRAM.— 

24 ‘‘(1) ESTABLISHMENT.—In cooperation with ap25 propriate State, regional, and local governments, the 
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1 Secretary shall establish a pilot program to address 

2 the shortage of long-term parking for drivers of com3 mercial motor vehicles on the National Highway Sys4 tem. 

5 ‘‘(2) ALLOCATION OF FUNDS.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall al7 locate funds made available under this subsection 

8 to States, metropolitan planning organizations, 

9 and local governments. 

10 ‘‘(B) CRITERIA.—In allocating funds under 

11 this subsection, the Secretary shall give priority 

12 to an applicant that— 

13 ‘‘(i) demonstrates a severe shortage of 

14 commercial vehicle parking capacity on the 

15 corridor to be addressed; 

16 ‘‘(ii) consults with affected State and 

17 local governments, community groups, pri18 vate providers of commercial vehicle park19 ing, and motorist and trucking organiza20 tions; and 

21 ‘‘(iii) demonstrates that the project 

22 proposed by the applicant is likely to have 

23 a positive effect on highway safety, traffic 

24 congestion, or air quality. 

25 ‘‘(3) USE OF ALLOCATED FUNDS.— 
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1 ‘‘(A) IN GENERAL.—A recipient of funds al2 located under this subsection shall use the funds 

3 to carry out the project proposed in the applica4 tion submitted by the recipient to the Secretary. 

5 ‘‘(B) TYPES OF PROJECTS.—Funds under 

6 this subsection shall be available for obligation 

7 for projects that serve the National Highway 

8 System, including— 

9 ‘‘(i) construction of safety rest areas 

10 that include parking for commercial motor 

11 vehicles; 

12 ‘‘(ii) construction of commercial motor 

13 vehicle parking facilities that are adjacent 

14 to commercial truck stops and travel plazas; 

15 ‘‘(iii) costs associated with the opening 

16 of facilities (including inspection and weigh 

17 stations and park-and-ride facilities) to 

18 provide commercial motor vehicle parking; 

19 ‘‘(iv) projects that promote awareness 

20 of the availability of public or private com21 mercial motor vehicle parking on the Na22 tional Highway System, including parking 

23 in connection with intelligent transpor24 tation systems and other systems; 
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1 ‘‘(v) construction of turnouts along the 

2 National Highway System for commercial 

3 motor vehicles; 

4 ‘‘(vi) capital improvements to public 

5 commercial motor vehicle truck parking fa6 cilities closed on a seasonal basis in order 

7 to allow the facilities to remain open year8 around; and 

9 ‘‘(vii) improvements to the geometric 

10 design at interchanges on the National 

11 Highway System to improve access to com12 mercial motor vehicle parking facilities. 

13 ‘‘(4) REPORT.—Not later than 5 years after the 

14 date of enactment of this section, the Secretary shall 

15 submit to Congress a report on the results of the pilot 

16 program carried out under this subsection. 

17 ‘‘(5) FEDERAL SHARE.—The Federal share of the 

18 cost of a project carried out under this subsection 

19 shall be consistent with section 120. 

20 ‘‘(6) FUNDING.— 

21 ‘‘(A) IN GENERAL.—There is authorized to 

22 be appropriated from the Highway Trust Fund 

23 (other than the Mass Transit Account) to carry 

24 out this subsection $10,000,000 for each of fiscal 

25 years 2005 through 2009. 
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1 ‘‘(B) CONTRACT AUTHORITY.—Funds au2 thorized under this paragraph shall be available 

3 for obligation in the same manner as if the funds 

4 were apportioned under this chapter. 

5 ‘‘(b) CORRIDOR AND FRINGE PARKING PILOT PRO6 GRAM.— 

7 ‘‘(1) ESTABLISHMENT.— 

8 ‘‘(A) IN GENERAL.—In cooperation with 

9 appropriate State, regional, and local govern10 ments, the Secretary shall carry out a pilot pro11 gram to provide corridor and fringe parking fa12 cilities. 

13 ‘‘(B) PRIMARY FUNCTION.—The primary 

14 function of a corridor and fringe parking facility 

15 funded under this subsection shall be to provide 

16 parking capacity to support car pooling, van 

17 pooling, ride sharing, commuting, and high oc18 cupancy vehicle travel. 

19 ‘‘(C) OVERNIGHT PARKING.—A State may 

20 permit a facility described in subparagraph (B) 

21 to be used for the overnight parking of commer22 cial vehicles if the use does not foreclose or un23 duly limit the primary function of the facility 

24 described in subparagraph (B). 

25 ‘‘(2) ALLOCATION OF FUNDS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall al2 locate funds made available to carry out this 

3 subsection to States. 

4 ‘‘(B) CRITERIA.—In allocating funds under 

5 this subsection, the Secretary shall give priority 

6 to a State that— 

7 ‘‘(i) demonstrates demand for corridor 

8 and fringe parking on the corridor to be ad9 dressed; 

10 ‘‘(ii) consults with affected metropoli11 tan planning organizations, local govern12 ments, community groups, and providers of 

13 corridor and fringe parking; and 

14 ‘‘(iii) demonstrates that the project 

15 proposed by the State is likely to have a 

16 positive effect on ride sharing, traffic con17 gestion, or air quality. 

18 ‘‘(3) USE OF ALLOCATED FUNDS.— 

19 ‘‘(A) IN GENERAL.—A recipient of funds al20 located under this subsection shall use the funds 

21 to carry out the project proposed in the applica22 tion submitted by the recipient to the Secretary. 

23 ‘‘(B) TYPES OF PROJECTS.—Funds under 

24 this subsection shall be available for obligation 
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1 for projects that serve the Federal-aid system, in2 cluding— 

3 ‘‘(i) construction of corridor and fringe 

4 parking facilities; 

5 ‘‘(ii) costs associated with the opening 

6 of facilities; 

7 ‘‘(iii) projects that promote awareness 

8 of the availability of corridor and fringe 

9 parking through the use of signage and 

10 other means; 

11 ‘‘(iv) capital improvements to corridor 

12 and fringe parking facilities closed on a 

13 seasonal basis in order to allow the facilities 

14 to remain open year-around; and 

15 ‘‘(v) improvements to the geometric de16 sign on adjoining roadways to facilitate ac17 cess to, and egress from, corridor and fringe 

18 parking facilities. 

19 ‘‘(4) REPORT.—Not later than 5 years after the 

20 date of enactment of this section, the Secretary shall 

21 submit to Congress a report on the results of the pilot 

22 program carried out under this subsection. 

23 ‘‘(5) FEDERAL SHARE.—The Federal share of the 

24 cost of a project carried out under this subsection 

25 shall be consistent with section 120. 
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1 ‘‘(6) FUNDING.— 

2 ‘‘(A) IN GENERAL.—There is authorized to 

3 be appropriated from the Highway Trust Fund 

4 (other than the Mass Transit Account) to carry 

5 out this subsection $10,000,000 for each of fiscal 

6 years 2005 through 2009. 

7 ‘‘(B) CONTRACT AUTHORITY.—Funds au8 thorized under this paragraph shall be available 

9 for obligation in the same manner as if the funds 

10 were apportioned under this chapter.’’. 

11 (b) CONFORMING AMENDMENT.—The analysis for sub12 chapter I of chapter I of title 23, United States Code (as 

13 amended by section 1813(c)), is amended by adding at the 

14 end the following: 

‘‘176. Parking pilot programs.’’. 

15 SEC. 1815. INTERSTATE OASIS PROGRAM. 

16 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

17 23, United States Code (as amended by section 1814(a)), 

18 is amended by adding at the end the following: 

19 ‘‘§ 177. Interstate oasis program 

20 ‘‘(a) IN GENERAL.—Not later than 180 days after the 

21 date of enactment of this section, in consultation with the 

22 States and other interested parties, the Secretary shall— 

23 ‘‘(1) establish an Interstate oasis program; and 

24 ‘‘(2) develop standards for designating, as an 

25 Interstate oasis, a facility that— 
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1 ‘‘(A) offers— 

2 ‘‘(i) products and services to the pub3 lic; 

4 ‘‘(ii) 24-hour access to restrooms; and 

5 ‘‘(iii) parking for automobiles and 

6 heavy trucks; and 

7 ‘‘(B) meets other standards established by 

8 the Secretary. 

9 ‘‘(b) STANDARDS FOR DESIGNATION.—The standards 

10 for designation under subsection (a) shall include standards 

11 relating to— 

12 ‘‘(1) the appearance of a facility; and 

13 ‘‘(2) the proximity of the facility to the Inter14 state System. 

15 ‘‘(c) ELIGIBILITY FOR DESIGNATION.—If a State elects 

16 to participate in the interstate oasis program, any facility 

17 meeting the standards established by the Secretary shall be 

18 eligible for designation under this section. 

19 ‘‘(d) LOGO.—The Secretary shall design a logo to be 

20 displayed by a facility designated under this section.’’. 

21 (b) CONFORMING AMENDMENT.—The analysis for sub22 chapter I of chapter I of title 23, United States Code (as 

23 amended by section 1814(b)), is amended by adding at the 

24 end the following: 

‘‘177. Interstate oasis program.’’. 
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1 SEC. 1816. TRIBAL-STATE ROAD MAINTENANCE AGREE2 MENTS. 

3 Section 204 of title 23, United States Code (as amend4 ed by section 1806(f)(4)), is amended by adding at the end 

5 the following: 

6 ‘‘(n) TRIBAL-STATE ROAD MAINTENANCE AGREE7 MENTS.— 

8 ‘‘(1) IN GENERAL.—Notwithstanding any other 

9 provision of law, regulation, policy, or guideline, an 

10 Indian tribe and a State may enter into a road 

11 maintenance agreement under which an Indian tribe 

12 assumes the responsibilities of the State for— 

13 ‘‘(A) Indian reservation roads; and 

14 ‘‘(B) roads providing access to Indian res15 ervation roads. 

16 ‘‘(2) TRIBAL-STATE AGREEMENTS.—Agreements 

17 entered into under paragraph (1)— 

18 ‘‘(A) shall be negotiated between the State 

19 and the Indian tribe; and 

20 ‘‘(B) shall not require the approval of the 

21 Secretary. 

22 ‘‘(3) ANNUAL REPORT.—Effective beginning with 

23 fiscal year 2004, the Secretary shall prepare and sub24 mit to Congress an annual report that identifies— 

25 ‘‘(A) the Indian tribes and States that have 

26 entered into agreements under paragraph (1); 
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1 ‘‘(B) the number of miles of roads for which 

2 Indian tribes have assumed maintenance respon3 sibilities; and 

4 ‘‘(C) the amount of funding transferred to 

5 Indian tribes for the fiscal year under agree6 ments entered into under paragraph (1).’’. 

7 SEC. 1817. NATIONAL FOREST SYSTEM ROADS. 

8 Section 205 of title 23, United States Code, is amended 

9 by adding at the end the following: 

10 ‘‘(e) Of the amounts made available for National For11 est System roads, $15,000,000 for each fiscal year shall be 

12 used by the Secretary of Agriculture to pay the costs of fa13 cilitating the passage of aquatic species beneath roads in 

14 the National Forest System, including the costs of con15 structing, maintaining, replacing, or removing culverts and 

16 bridges, as appropriate.’’. 

17 SEC. 1818. TERRITORIAL HIGHWAY PROGRAM. 

18 (a) IN GENERAL.—Chapter 2 of title 23, United States 

19 Code, is amended by striking section 215 and inserting the 

20 following: 

21 ‘‘§ 215. Territorial highway program 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) PROGRAM.—The term ‘program’ means the 

24 territorial highway program established under sub25 section (b). 
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1 ‘‘(2) TERRITORY.—The term ‘territory’ means 

2 the any of the following territories of the United 

3 States: 

4 ‘‘(A) American Samoa. 

5 ‘‘(B) The Commonwealth of the Northern 

6 Mariana Islands. 

7 ‘‘(C) Guam. 

8 ‘‘(D) The United States Virgin Islands. 

9 ‘‘(b) PROGRAM.— 

10 ‘‘(1) IN GENERAL.—Recognizing the mutual ben11 efits that will accrue to the territories and the United 

12 States from the improvement of highways in the terri13 tories, the Secretary may carry out a program to as14 sist each territorial government in the construction 

15 and improvement of a system of arterial and collector 

16 highways, and necessary inter-island connectors, that 

17 is— 

18 ‘‘(A) designated by the Governor or chief ex19 ecutive officer of each territory; and 

20 ‘‘(B) approved by the Secretary. 

21 ‘‘(2) FEDERAL SHARE.—The Secretary shall pro22 vide Federal financial assistance to territories under 

23 this section in accordance with section 120(h). 

24 ‘‘(c) TECHNICAL ASSISTANCE.— 
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1 ‘‘(1) IN GENERAL.—To continue a long-range 

2 highway development program, the Secretary may 

3 provide technical assistance to the governments of the 

4 territories to enable the territories to, on a continuing 

5 basis— 

6 ‘‘(A) engage in highway planning; 

7 ‘‘(B) conduct environmental evaluations; 

8 ‘‘(C) administer right-of-way acquisition 

9 and relocation assistance programs; and 

10 ‘‘(D) design, construct, operate, and main11 tain a system of arterial and collector highways, 

12 including necessary inter-island connectors. 

13 ‘‘(2) FORM AND TERMS OF ASSISTANCE.—Tech14 nical assistance provided under paragraph (1), and 

15 the terms for the sharing of information among terri16 tories receiving the technical assistance, shall be in17 cluded in the agreement required by subsection (e). 

18 ‘‘(d) NONAPPLICABILITY OF CERTAIN PROVISIONS.— 

19 ‘‘(1) IN GENERAL.—Except to the extent that 

20 provisions of chapter 1 are determined by the Sec21 retary to be inconsistent with the needs of the terri22 tories and the intent of the program, chapter 1 (other 

23 than provisions of chapter 1 relating to the appor24 tionment and allocation of funds) shall apply to 

25 funds authorized to be appropriated for the program. 
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1 ‘‘(2) APPLICABLE PROVISIONS.—The specific sec2 tions of chapter 1 that are applicable to each terri3 tory, and the extent of the applicability of those sec4 tion, shall be identified in the agreement required by 

5 subsection (e). 

6 ‘‘(e) AGREEMENT.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (3), none of the funds made available for the 

9 program shall be available for obligation or expendi10 ture with respect to any territory until the Governor 

11 or chief executive officer of the territory enters into a 

12 new agreement with the Secretary (which new agree13 ment shall be entered into not later than 1 year after 

14 the date of enactment of the Safe, Accountable, Flexi15 ble, and Efficient Transportation Equity Act of 

16 2004), providing that the government of the territory 

17 shall— 

18 ‘‘(A) implement the program in accordance 

19 with applicable provisions of chapter 1 and sub20 section (d); 

21 ‘‘(B) design and construct a system of arte22 rial and collector highways, including necessary 

23 inter-island connectors, in accordance with 

24 standards that are— 

25 ‘‘(i) appropriate for each territory; and 
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1 ‘‘(ii) approved by the Secretary; 

2 ‘‘(C) provide for the maintenance of facili3 ties constructed or operated under this section in 

4 a condition to adequately serve the needs of 

5 present and future traffic; and 

6 ‘‘(D) implement standards for traffic oper7 ations and uniform traffic control devices that 

8 are approved by the Secretary. 

9 ‘‘(2) TECHNICAL ASSISTANCE.—The new agree10 ment required by paragraph (1) shall— 

11 ‘‘(A) specify the kind of technical assistance 

12 to be provided under the program; 

13 ‘‘(B) include appropriate provisions regard14 ing information sharing among the territories; 

15 and 

16 ‘‘(C) delineate the oversight role and respon17 sibilities of the territories and the Secretary. 

18 ‘‘(3) REVIEW AND REVISION OF AGREEMENT.— 

19 The new agreement entered into under paragraph (1) 

20 shall be reevaluated and, as necessary, revised, at 

21 least every 2 years. 

22 ‘‘(4) EXISTING AGREEMENTS.—With respect to 

23 an agreement between the Secretary and the Governor 

24 or chief executive officer of a territory that is in effect 

25 as of the date of enactment of the Safe, Accountable, 
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1 Flexible, and Efficient Transportation Equity Act of 

2 2004— 

3 ‘‘(A) the agreement shall continue in force 

4 until replaced by a new agreement in accordance 

5 with paragraph (1); and 

6 ‘‘(B) amounts made available for the pro7 gram under the agreement shall be available for 

8 obligation or expenditure so long as the agree9 ment, or a new agreement under paragraph (1), 

10 is in effect. 

11 ‘‘(f) PERMISSIBLE USES OF FUNDS.— 

12 ‘‘(1) IN GENERAL.—Funds made available for 

13 the program may be used only for the following 

14 projects and activities carried out in a territory: 

15 ‘‘(A) Eligible surface transportation pro16 gram projects described in section 133(b). 

17 ‘‘(B) Cost-effective, preventive maintenance 

18 consistent with section 116. 

19 ‘‘(C) Ferry boats, terminal facilities, and 

20 approaches, in accordance with subsections (b) 

21 and (c) of section 129. 

22 ‘‘(D) Engineering and economic surveys 

23 and investigations for the planning, and the fi24 nancing, of future highway programs. 
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1 ‘‘(E) Studies of the economy, safety, and 

2 convenience of highway use. 

3 ‘‘(F) The regulation and equitable taxation 

4 of highway use. 

5 ‘‘(G) Such research and development as are 

6 necessary in connection with the planning, de7 sign, and maintenance of the highway system. 

8 ‘‘(2) PROHIBITION ON USE OF FUNDS FOR ROU9 TINE MAINTENANCE.—None of the funds made avail10 able for the program shall be obligated or expended 

11 for routine maintenance. 

12 ‘‘(g) LOCATION OF PROJECTS.—Territorial highway 

13 projects (other than those described in paragraphs (1), (3), 

14 and (4) of section 133(b)) may not be undertaken on roads 

15 functionally classified as local.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) ELIGIBLE PROJECTS.—Section 103(b)(6) of 

18 title 23, United States Code, is amended by striking 

19 subparagraph (P) and inserting the following: 

20 ‘‘(P) Projects eligible for assistance under the ter21 ritorial highway program under section 215.’’. 

22 (2) FUNDING.—Section 104(b)(1)(A) of title 23, 

23 United States Code, is amended by striking ‘‘to the 

24 Virgin Islands, Guam, American Samoa, and the 

25 Commonwealth of Northern Mariana Islands’’ and 
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1 inserting ‘‘for the territorial highway program au2 thorized under section 215’’. 

3 (3) ANALYSIS.—The analysis for chapter 2 of 

4 title 23, United States Code, is amended by striking 

5 the item relating to section 215 and inserting the fol6 lowing: 

‘‘215. Territorial highway program.’’. 

7 SEC. 1819. MAGNETIC LEVITATION TRANSPORTATION TECH8 NOLOGY DEPLOYMENT PROGRAM. 

9 Section 322 of title 23, United States Code, is amend10 ed— 

11 (1) in subsection (c)— 

12 (A) by striking ‘‘Not later than’’ and insert13 ing the following: 

14 ‘‘(1) INITIAL SOLICITATION.—Not later than’’; 

15 and 

16 (B) by adding at the end the following: 

17 ‘‘(2) ADDITIONAL SOLICITATION.—Not later than 

18 1 year after the date of enactment of this paragraph, 

19 the Secretary may solicit additional applications 

20 from States, or authorities designated by 1 or more 

21 States, for financial assistance authorized by sub22 section (b) for planning, design, and construction of 

23 eligible MAGLEV projects.’’; 
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1 (2) in subsection (e), by striking ‘‘Prior to solic2 iting applications, the Secretary’’ and inserting ‘‘The 

3 Secretary’’; 

4 (3) in subsection (h)— 

5 (A) in subparagraph (A), by striking clause 

6 (i) and inserting the following: 

7 ‘‘(i) IN GENERAL.—There is authorized 

8 to be appropriated from the Highway Trust 

9 Fund (other than the Mass Transit Ac10 count) to carry out this section $15,000,000 

11 for each of fiscal years 2004 through 2009.’’; 

12 and 

13 (B) in subparagraph (B), by striking clause 

14 (i) and inserting the following: 

15 ‘‘(i) IN GENERAL.—There are author16 ized to be appropriated from the Highway 

17 Trust Fund (other than the Mass Transit 

18 Account) to carry out this section— 

19 ‘‘(I) $375,000,000 for fiscal year 

20 2004; 

21 ‘‘(II) $400,000,000 for fiscal year 

22 2005; 

23 ‘‘(III) $415,000,000 for fiscal year 

24 2006; 
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1 ‘‘(IV) $425,000,000 for fiscal year 

2 2007; 

3 ‘‘(V) $435,000,000 for fiscal year 

4 2008; and 

5 ‘‘(VI) $450,000,000 for fiscal year 

6 2009.’’; and 

7 (4) by striking subsection (i). 

8 SEC. 1820. DONATIONS AND CREDITS. 

9 Section 323 of title 23, United States Code, is amend10 ed— 

11 (1) in the first sentence of subsection (c), by in12 serting ‘‘, or a local government from offering to do13 nate funds, materials, or services performed by local 

14 government employees,’’ after ‘‘services’’; and 

15 (2) striking subsection (e). 

16 SEC. 1821. DISADVANTAGED BUSINESS ENTERPRISES. 

17 (a) GENERAL RULE.—Except to the extent that the 

18 Secretary determines otherwise, not less than 10 percent of 

19 the amounts made available for any program under titles 

20 I, II, and III of this Act shall be expended with small busi21 ness concerns owned and controlled by socially and eco22 nomically disadvantaged individuals. 

23 (b) DEFINITIONS.—In this section: 

24 (1) SMALL BUSINESS CONCERN.— 
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1 (A) IN GENERAL.—The term ‘‘small busi2 ness concern’’ has the meaning given the term 

3 under section 3 of the Small Business Act (15 

4 U.S.C. 632). 

5 (B) EXCLUSION.—The term ‘‘small business 

6 concern’’ does not include any concern or group 

7 of concerns controlled by the same socially and 

8 economically disadvantaged individual or indi9 viduals that has average annual gross receipts 

10 over the preceding 3 fiscal years in excess of 

11 $17,420,000, as adjusted by the Secretary for in12 flation. 

13 (2) SOCIALLY AND ECONOMICALLY DISADVAN14 TAGED INDIVIDUALS.—The term ‘‘socially and eco15 nomically disadvantaged individuals’’ has the mean16 ing given the term under section 8(d) of the Small 

17 Business Act (15 U.S.C. 637(d)) and relevant subcon18 tracting regulations promulgated under that section, 

19 except that women shall be presumed to be socially 

20 and economically disadvantaged individuals for the 

21 purposes of this section. 

22 (c) ANNUAL LISTING OF DISADVANTAGED BUSINESS

23 ENTERPRISES.—Each State shall annually survey and 

24 compile a list of the small business concerns referred to in 

25 subsection (a) and the location of such concerns in the State 
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1 and notify the Secretary, in writing, of the percentage of 

2 such concerns which are controlled by women, by socially 

3 and economically disadvantaged individuals (other than 

4 women), and by individuals who are women and are other5 wise socially and economically disadvantaged individuals. 

6 (d) UNIFORM CERTIFICATION.—The Secretary shall es7 tablish minimum uniform criteria for State governments 

8 to use in certifying whether a concern qualifies for purposes 

9 of this section. Such minimum uniform criteria shall in10 clude on-site visits, personal interviews, licenses, analysis 

11 of stock ownership, listing of equipment, analysis of bond12 ing capacity, listing of work completed, resume of principal 

13 owners, financial capacity, and type of work preferred. 

14 (e) COMPLIANCE WITH COURT ORDERS.—Nothing in 

15 this section limits the eligibility of an entity or person to 

16 receive funds made available under titles I, III, and V of 

17 this Act, if the entity or person is prevented, in whole or 

18 in part, from complying with subsection (a) because a Fed19 eral court issues a final order in which the court finds that 

20 the requirement of subsection (a), or the program estab21 lished under subsection (a), is unconstitutional. 

22 SEC. 1822. EMERGENCY RELIEF. 

23 Section 125(c)(1) of title 23, United States Code, is 

24 amended by striking $100,000,000’’ and inserting 

25 ‘‘$300,000,000’’. 
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1 SEC. 1823. PRIORITY FOR PEDESTRIAN AND BICYCLE FACIL2 ITY ENHANCEMENT PROJECTS. 

3 Section 133(e)(5) of title 23, United States Code, is 

4 amended by adding at the end the following: 

5 ‘‘(D) PRIORITY FOR PEDESTRIAN AND BICY6 CLE FACILITY ENHANCEMENT PROJECTS.—The 

7 Secretary shall encourage States to give priority 

8 to pedestrian and bicycle facility enhancement 

9 projects that include a coordinated physical ac10 tivity or healthy lifestyles program.’’. 

11 SEC. 1824. THE DELTA REGIONAL AUTHORITY. 

12 (a) IN GENERAL.—Subchapter I of chapter 1 of title 

13 23, United States Code (as amended by section 1814(a)), 

14 is amended by adding at the end the following: 

15 ‘‘§ 178. Delta Region transportation development pro16 gram 

17 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

18 program to— 

19 ‘‘(1) support and encourage multistate transpor20 tation planning and corridor development; 

21 ‘‘(2) provide for transportation project develop22 ment; 

23 ‘‘(3) facilitate transportation decisionmaking; 

24 and 

25 ‘‘(4) support transportation construction. 
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1 ‘‘(b) ELIGIBLE RECIPIENTS.—A State transportation 

2 department or metropolitan planning organization may re3 ceive and administer funds provided under the program. 

4 ‘‘(c) ELIGIBLE ACTIVITIES.—The Secretary shall make 

5 allocations under the program for multistate highway and 

6 transit planning, development, and construction projects. 

7 ‘‘(d) OTHER PROVISIONS REGARDING ELIGIBILITY.— 

8 All activities funded under this program shall be consistent 

9 with the continuing, cooperative, and comprehensive plan10 ning processes required by section 134 and 135. 

11 ‘‘(e) SELECTION CRITERIA.—The Secretary shall select 

12 projects to be carried out under the program based on— 

13 ‘‘(1) whether the project is located— 

14 ‘‘(A) in an area that is part of the Delta 

15 Regional Authority; and 

16 ‘‘(B) on the Federal-aid system; 

17 ‘‘(2) endorsement of the project by the State de18 partment of transportation; and 

19 ‘‘(3) evidence of the ability to complete the 

20 project. 

21 ‘‘(f) PROGRAM PRIORITIES.—In administering the 

22 program, the Secretary shall— 

23 ‘‘(1) encourage State and local officials to work 

24 together to develop plans for multimodal and multi25 jurisdictional transportation decisionmaking; and 
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1 ‘‘(2) give priority to projects that emphasize 

2 multimodal planning, including planning for oper3 ational improvements that— 

4 ‘‘(A) increase the mobility of people and 

5 goods; 

6 ‘‘(B) improve the safety of the transpor7 tation system with respect to catastrophic— 

8 ‘‘(i) natural disasters; or 

9 ‘‘(ii) disasters caused by human activ10 ity; and 

11 ‘‘(C) contribute to the economic vitality of 

12 the area in which the project is being carried 

13 out. 

14 ‘‘(g) FEDERAL SHARE.—Amounts provided by the 

15 Delta Regional Authority to carry out a project under this 

16 section shall be applied to the non-Federal share required 

17 by section 120. 

18 ‘‘(h) AVAILABILITY OF FUNDS.—Amounts made avail19 able to carry out this section shall remain available until 

20 expended.’’. 

21 (b) CONFORMING AMENDMENT.—The analysis for 

22 chapter 1 of title 23, United States Code (as amended by 

23 section 1814(b)), is amended by adding at the end the fol24 lowing: 

‘‘178. Delta Region transportation development program.’’. 
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1 SEC. 1825. MULTISTATE INTERNATIONAL CORRIDOR DEVEL2 OPMENT PROGRAM. 

3 (a) ESTABLISHMENT.—The Secretary shall establish a 

4 program to develop international trade corridors to facili5 tate the movement of freight from international ports of 

6 entry and inland ports through and to the interior of the 

7 United States. 

8 (b) ELIGIBLE RECIPIENTS.—State transportation de9 partments and metropolitan planning organizations shall 

10 be eligible to receive and administer funds provided under 

11 the program. 

12 (c) ELIGIBLE ACTIVITIES.—The Secretary shall make 

13 allocations under this program for any activity eligible for 

14 funding under title 23, United States Code, including 

15 multistate highway and multistate multimodal planning 

16 and project construction. 

17 (d) OTHER PROVISIONS REGARDING ELIGIBILITY.— 

18 All activities funded under this program shall be consistent 

19 with the continuing, cooperative, and comprehensive plan20 ning processes required by sections 134 and 135 of title 23, 

21 United States Code. 

22 (e) SELECTION CRITERIA.—The Secretary shall only 

23 select projects for corridors— 

24 (1) that have significant levels or increases in 

25 truck and traffic volume relating to international 

26 freight movement; 
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1 (2) connect to at least 1 international terminus 

2 or inland port; 

3 (3) traverse at least 3 States; and 

4 (4) are identified by section 115(c) of the Inter5 modal Transportation Efficiency Act of 1991 (Public 

6 Law 102–240; 105 Stat. 2032). 

7 (f) PROGRAM PRIORITIES.—In administering the pro8 gram, the Secretary shall— 

9 (1) encourage and enable States and other juris10 dictions to work together to develop plans for 

11 multimodal and multijurisdictional transportation 

12 decisionmaking; and 

13 (2) give priority to studies that emphasize 

14 multimodal planning, including planning for oper15 ational improvements that increase mobility, freight 

16 productivity, access to marine ports, safety, and secu17 rity while enhancing the environment. 

18 (g) FEDERAL SHARE.—The Federal share required for 

19 any study carried out under this section shall be available 

20 for obligation in the same manner as if the funds were ap21 portioned under chapter I of title 23, United States Code. 

22 SEC. 1826. AUTHORIZATION OF CONTRACT AUTHORITY FOR 

23 STATES WITH INDIAN RESERVATIONS. 

24 Section 1214(d)(5)(A) of the Transportation Equity 

25 Act for the 21st Century (23 U.S.C. 202 note; 112 Stat. 
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1 206) is amended by striking ‘‘$1,500,000 for each of fiscal 

2 years 1998 through 2003’’ and inserting ‘‘$1,800,000 for 

3 each of fiscal years 2004 through 2009’’. 

4 Subtitle I—Technical Corrections 

5 SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT. 

6 (a) LETTING OF CONTRACTS.—Section 112 of title 23, 

7 United States Code, is amended— 

8 (1) by striking subsection (f); and 

9 (2) by redesignating subsection (g) as subsection 

10 (f). 

11 (b) FRINGE AND CORRIDOR PARKING FACILITIES.— 

12 Section 137(a) of title 23, United States Code, is amended 

13 in the first sentence by striking ‘‘on the Federal-aid urban 

14 system’’ and inserting ‘‘on a Federal-aid highway’’. 

15 SEC. 1902. CLARIFICATION OF DATE. 

16 Section 109(g) of title 23, United States Code, is 

17 amended in the first sentence by striking ‘‘The Secretary’’ 

18 and all that follows through ‘‘of 1970’’ and inserting ‘‘Not 

19 later than January 30, 1971, the Secretary shall issue’’. 

20 SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDEN21 TIFYING FUNDING SOURCES IN TITLE 23. 

22 (a) IN GENERAL.—Section 154 of the Federal-Aid 

23 Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) 

24 is— 

25 (1) transferred to title 23, United States Code; 
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1 (2) redesignated as section 321; 

2 (3) moved to appear after section 320 of that 

3 title; and 

4 (4) amended by striking the section heading and 

5 inserting the following: 

6 ‘‘§ 321. Signs identifying funding sources’’. 

7 (b) CONFORMING AMENDMENT.—The analysis for 

8 chapter 3 of title 23, United States Code, is amended by 

9 inserting after the item relating to section 320 the following: 

‘‘321. Signs identifying funding sources.’’. 

10 SEC. 1904. INCLUSION OF BUY AMERICA REQUIREMENTS IN 

11 TITLE 23. 

12 (a) IN GENERAL.—Section 165 of the Highway Im13 provement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) 

14 is— 

15 (1) transferred to title 23, United States Code; 

16 (2) redesignated as section 313; 

17 (3) moved to appear after section 312 of that 

18 title; and 

19 (4) amended by striking the section heading and 

20 inserting the following: 

21 ‘‘§ 313. Buy America’’. 

22 (b) CONFORMING AMENDMENTS.— 
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1 (1) The analysis for chapter 3 of title 23, United 

2 States Code, is amended by inserting after the item 

3 relating to section 312 the following: 

‘‘313. Buy America.’’. 

4 (2) Section 313 of title 23, United States Code 

5 (as added by subsection (a)), is amended— 

6 (A) in subsection (a), by striking ‘‘by this 

7 Act’’ the first place it appears and all that fol8 lows through ‘‘of 1978’’ and inserting ‘‘to carry 

9 out the Surface Transportation Assistance Act of 

10 1982 (96 Stat. 2097) or this title’’; 

11 (B) in subsection (b), by redesignating 

12 paragraph (4) as paragraph (3); 

13 (C) in subsection (d), by striking ‘‘this 

14 Act,’’ and all that follows through ‘‘Code, which’’ 

15 and inserting ‘‘the Surface Transportation As16 sistance Act of 1982 (96 Stat. 2097) or this title 

17 that’’; 

18 (D) by striking subsection (e); and 

19 (E) by redesignating subsections (f) and (g) 

20 as subsections (e) and (f), respectively. 

21 SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINA22 TION SECTION. 

23 Section 140 of title 23, United States Code, is amend24 ed— 

25 (1) in subsection (a)— 
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1 (A) in the first sentence, by striking ‘‘sub2 section (a) of section 105 of this title’’ and in3 serting ‘‘section 135’’; 

4 (B) in the second sentence, by striking ‘‘He’’ 

5 and inserting ‘‘The Secretary’’; 

6 (C) in the third sentence, by striking ‘‘where 

7 he considers it necessary to assure’’ and insert8 ing ‘‘if necessary to ensure’’; and 

9 (D) in the last sentence— 

10 (i) by striking ‘‘him’’ and inserting 

11 ‘‘the Secretary’’ and 

12 (ii) by striking ‘‘he’’ and inserting ‘‘the 

13 Secretary’’; 

14 (2) in subsection (b)— 

15 (A) in the first sentence, by striking ‘‘high16 way construction’’ and inserting ‘‘surface trans17 portation’’; and 

18 (B) in the second sentence— 

19 (i) by striking ‘‘as he may deem nec20 essary’’ and inserting ‘‘as necessary’’; and 

21 (ii) by striking ‘‘not to exceed 

22 $2,500,000 for the transition quarter ending 

23 September 30, 1976, and’’; 

24 (3) in the second sentence of subsection (c)— 
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1 (A) by striking ‘‘subsection 104(b)(3) of this 

2 title’’ and inserting ‘‘section 104(b)(3)’’; and 

3 (B) by striking ‘‘he may deem’’; and 

4 (4) in the heading of subsection (d), by striking 

5 ‘‘AND CONTRACTING’’. 

6 TITLE II—TRANSPORTATION 

7 RESEARCH 

8 Subtitle A—Funding 

9 SEC. 2001. AUTHORIZATION OF APPROPRIATIONS. 

10 (a) IN GENERAL.—The following sums are authorized 

11 to be appropriated out of the Highway Trust Fund (other 

12 than the Mass Transit Account): 

13 (1) SURFACE TRANSPORTATION RESEARCH.— 

14 (A) IN GENERAL.—For carrying out sec15 tions 502, 503, 506, 507, 508, and 511 of title 

16 23, United States Code— 

17 (i) $211,000,000 for each of fiscal 

18 years 2004 and 2005; 

19 (ii) $215,000,000 for fiscal year 2006; 

20 (iii) $218,000,000 for fiscal year 2007; 

21 (iv) $220,000,000 for fiscal year 2008; 

22 and 

23 (v) $223,000,000 for fiscal year 2009. 

24 (B) SURFACE TRANSPORTATION-ENVIRON25 MENTAL COOPERATIVE RESEARCH PROGRAM.— 
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1 For each of fiscal years 2004 through 2009, the 

2 Secretary shall set aside $20,000,000 of the funds 

3 authorized under subparagraph (A) to carry out 

4 the surface transportation-environmental cooper5 ative research program under section 507 of title 

6 23, United States Code. 

7 (2) TRAINING AND EDUCATION.—For carrying 

8 out section 504 of title 23, United States Code— 

9 (A) $27,000,000 for fiscal year 2004; 

10 (B) $28,000,000 for fiscal year 2005; 

11 (C) $29,000,000 for fiscal year 2006; 

12 (D) $30,000,000 for fiscal year 2007; 

13 (E) $31,000,000 for fiscal year 2008; and 

14 (F) $32,000,000 for fiscal year 2009. 

15 (3) BUREAU OF TRANSPORTATION STATISTICS.— 

16 For the Bureau of Transportation Statistics to carry 

17 out section 111 of title 49, United States Code, 

18 $28,000,000 for each of fiscal years 2004 through 

19 2009. 

20 (4) ITS STANDARDS, RESEARCH, OPERATIONAL

21 TESTS, AND DEVELOPMENT.—For carrying out sec22 tions 524, 525, 526, 527, 528, and 529 of title 23, 

23 United States Code— 

24 (A) $120,000,000 for fiscal year 2004; 

25 (B) $123,000,000 for fiscal year 2005; 
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1 (C) $126,000,000 for fiscal year 2006; 

2 (D) $129,000,000 for fiscal year 2007; 

3 (E) $132,000,000 for fiscal year 2008; and 

4 (F) $135,000,000 for fiscal year 2009. 

5 (5) UNIVERSITY TRANSPORTATION CENTERS.— 

6 For carrying out section 510 of title 23, United States 

7 Code— 

8 (A) $40,000,000 for fiscal year 2004; and 

9 (B) $45,000,000 for each of fiscal years 

10 2005 through 2009. 

11 (b) APPLICABILITY OF TITLE 23, UNITED STATES

12 CODE.—Funds authorized to be appropriated by subsection 

13 (a)— 

14 (1) shall be available for obligation in the same 

15 manner as if the funds were apportioned under chap16 ter 1 of title 23, United States Code, except that the 

17 Federal share of the cost of a project or activity car18 ried out using the funds shall be the share applicable 

19 under section 120(b) of title 23, United States Code, 

20 as adjusted under subsection (d) of that section (un21 less otherwise specified or otherwise determined by the 

22 Secretary); and 

23 (2) shall remain available until expended. 

24 (c) ALLOCATIONS.— 
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1 (1) SURFACE TRANSPORTATION RESEARCH.—Of 

2 the amounts made available under subsection (a)(1)— 

3 (A) $27,000,000 for each of fiscal years 

4 2004 through 2009 shall be available to carry 

5 out advanced, high-risk, long-term research 

6 under section 502(d) of title 23, United States 

7 Code; 

8 (B) $18,000,000 for fiscal years 2004 and 

9 2005, $17,000,000 for fiscal year 2006, 

10 $15,000,000 for fiscal year 2007, $12,000,000 for 

11 fiscal year 2008, and $10,00,000 for fiscal year 

12 2009 shall be available to carry out the long13 term pavement performance program under sec14 tion 502(e) of that title; 

15 (C) $6,000,000 for each of fiscal years 2004 

16 through 2009 shall be available to carry out the 

17 high-performance concrete bridge research and 

18 technology transfer program under section 502(i) 

19 of that title; 

20 (D) $6,000,000 for each of fiscal years 2004 

21 through 2009 shall be made available to carry 

22 out research on asphalt used in highway pave23 ments; 
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1 (E) $6,000,000 for each of fiscal years 2004 

2 through 2009 shall be made available to carry 

3 out research on concrete pavements; 

4 (F) $3,000,000 for each of fiscal years 2004 

5 through 2009 shall be made available to carry 

6 out research on aggregates used in highway 

7 pavements; 

8 (G) $4,750,000 for each of fiscal years 2004 

9 through 2009 shall be made available for further 

10 development and deployment of techniques to 

11 prevent and mitigate alkali silica reactivity; 

12 (H) $2,000,000 for fiscal year 2005 shall be 

13 remain available until expended for asphalt and 

14 asphalt-related reclamation research at the South 

15 Dakota School of Mines; and 

16 (I) $3,000,000 for each of fiscal years 2004 

17 through 2009 shall be made available to carry 

18 out section 502(f)(3) of title 23, United States 

19 Code. 

20 (2) TECHNOLOGY APPLICATION PROGRAM.—Of 

21 the amounts made available under subsection (a)(1), 

22 $60,000,000 for each of fiscal years 2004 through 

23 2009 shall be available to carry out section 503 of 

24 title 23, United States Code. 
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1 (3) TRAINING AND EDUCATION.—Of the amounts 

2 made available under subsection (a)(2)— 

3 (A) $12,000,000 for fiscal year 2004, 

4 $12,500,000 for fiscal year 2005, $13,000,000 for 

5 fiscal year 2006, $13,500,000 for fiscal year 

6 2007, $14,000,000 for fiscal year 2008, and 

7 $14,500,000 for fiscal year 2009 shall be avail8 able to carry out section 504(a) of title 23, 

9 United States Code (relating to the National 

10 Highway Institute); 

11 (B) $15,000,000 for each of fiscal years 

12 2004 through 2009 shall be available to carry 

13 out section 504(b) of that title (relating to local 

14 technical assistance); and 

15 (C) $3,000,000 for each of fiscal years 2004 

16 through 2009 shall be available to carry out sec17 tion 504(c)(2) of that title (relating to the Eisen18 hower Transportation Fellowship Program). 

19 (4) INTERNATIONAL HIGHWAY TRANSPORTATION

20 OUTREACH PROGRAM.—Of the amounts made avail21 able under subsection (a)(1), $500,000 for each of fis22 cal years 2004 through 2009 shall be available to 

23 carry out section 506 of title 23, United States Code. 

24 (5) NEW STRATEGIC HIGHWAY RESEARCH PRO25 GRAM.—For each of fiscal years 2004 through 2009, 
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1 to carry out section 509 of title 23, United States 

2 Code, the Secretary shall set aside— 

3 (A) $15,000,000 of the amounts made avail4 able to carry out the interstate maintenance pro5 gram under section 119 of title 23, United States 

6 Code, for the fiscal year; 

7 (B) $19,000,000 of the amounts made avail8 able for the National Highway System under 

9 section 101 of title 23, United States Code, for 

10 the fiscal year; 

11 (C) $13,000,000 of the amounts made avail12 able to carry out the bridge program under sec13 tion 144 of title 23, United States Code, for the 

14 fiscal year; 

15 (D) $20,000,000 of the amounts made avail16 able to carry out the surface transportation pro17 gram under section 133 of title 23, United States 

18 Code, for the fiscal year; 

19 (E) $5,000,000 of the amounts made avail20 able to carry out the congestion mitigation and 

21 air quality improvement program under section 

22 149 of title 23, United States Code, for the fiscal 

23 year; and 

24 (F) $3,000,000 of the amounts made avail25 able to carry out the highway safety improve-
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1 ment program under section 148 of title 23, 

2 United States Code, for the fiscal year. 

3 (6) COMMERCIAL VEHICLE INTELLIGENT TRANS4 PORTATION SYSTEM INFRASTRUCTURE PROGRAM.—Of 

5 the amounts made available under subsection (a)(4), 

6 not less than $30,000,000 for each of fiscal years 2004 

7 through 2009 shall be available to carry out section 

8 527 of title 23, United States Code. 

9 (d) TRANSFERS OF FUNDS.—The Secretary may 

10 transfer— 

11 (1) to an amount made available under para12 graphs (1), (2), or (4) of subsection (c), not to exceed 

13 10 percent of the amount allocated for a fiscal year 

14 under any other of those paragraphs; and 

15 (2) to an amount made available under subpara16 graphs (A), (B), or (C) of subsection (c)(3), not to ex17 ceed 10 percent of the amount allocated for a fiscal 

18 year under any other of those subparagraphs. 

19 SEC. 2002. OBLIGATION CEILING. 

20 Notwithstanding any other provision of law, the total 

21 of all obligations from amounts made available from the 

22 Highway Trust Fund (other than the Mass Transit Ac23 count) by section 2001(a) shall not exceed— 

24 (1) $426,200,000 for fiscal year 2004; 

25 (2) $435,200,000 for fiscal year 2005; 
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1 (3) $443,200,000 for fiscal year 2006; 

2 (4) $450,200,000 for fiscal year 2007; 

3 (5) $456,200,000 for fiscal year 2008; and 

4 (6) $463,200,000 for fiscal year 2009. 

5 SEC. 2003. NOTICE. 

6 (a) NOTICE OF REPROGRAMMING.—If any funds au7 thorized for carrying out this title or the amendments made 

8 by this title are subject to a reprogramming action that re9 quires notice to be provided to the Committee on Appropria10 tions of the House of Representatives and the Committee 

11 on Appropriations of the Senate, notice of that action shall 

12 be concurrently provided to the Committee on Transpor13 tation and Infrastructure and the Committee on Science of 

14 the House of Representatives and the Committee on Envi15 ronment and Public Works of the Senate. 

16 (b) NOTICE OF REORGANIZATION.—On or before the 

17 15th day preceding the date of any major reorganization 

18 of a program, project, or activity of the Department of 

19 Transportation for which funds are authorized by this title 

20 or the amendments made by this title, the Secretary shall 

21 provide notice of the reorganization to the Committee on 

22 Transportation and Infrastructure and the Committee on 

23 Science of the House of Representatives and the Committee 

24 on Environment and Public Works of the Senate. 
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1 Subtitle B—Research and 

2 Technology 

3 SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM. 

4 (a) IN GENERAL.—Chapter 5 of title 23, United States 

5 Code, is amended to read as follows: 

6 ‘‘CHAPTER 5—RESEARCH AND 

7 TECHNOLOGY 

‘‘SUBCHAPTER I—SURFACE TRANSPORTATION 

‘‘Sec. 

‘‘501. Definitions. 

‘‘502. Surface transportation research. 

‘‘503. Technology application program. 

‘‘504. Training and education. 

‘‘505. State planning and research. 

‘‘506. International highway transportation outreach program. 

‘‘507. Surface transportation-environmental cooperative research program. 

‘‘508. Surface transportation research technology deployment and strategic planning. 

‘‘509. New strategic highway research program. 

‘‘510. University transportation centers. 

‘‘511. Multistate corridor operations and management. 

‘‘512. Transportation analysis simulation system. 

‘‘SUBCHAPTER II—INTELLIGENT TRANSPORTATION SYSTEM 

RESEARCH AND TECHNICAL ASSISTANCE PROGRAM 

‘‘521. Finding. 

‘‘522. Goals and purposes. 

‘‘523. Definitions. 

‘‘524. General authorities and requirements. 

‘‘525. National ITS Program Plan. 

‘‘526. National ITS architecture and standards. 

‘‘527. Commercial vehicle intelligent transportation system infrastructure program. 

‘‘528. Research and development. 

‘‘529. Use of funds. 

8 ‘‘SUBCHAPTER I—SURFACE TRANSPORTATION 

9 ‘‘§ 501. Definitions 

10 ‘‘In this subchapter: 
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1 ‘‘(1) FEDERAL LABORATORY.—The term ‘Federal 

2 laboratory’ includes— 

3 ‘‘(A) a Government-owned, Government-op4 erated laboratory; and 

5 ‘‘(B) a Government-owned, contractor-oper6 ated laboratory. 

7 ‘‘(2) SAFETY.—The term ‘safety’ includes high8 way and traffic safety systems, research, and develop9 ment relating to— 

10 ‘‘(A) vehicle, highway, driver, passenger, bi11 cyclist, and pedestrian characteristics; 

12 ‘‘(B) accident investigations; 

13 ‘‘(C) integrated, interoperable emergency 

14 communications; 

15 ‘‘(D) emergency medical care; and 

16 ‘‘(E) transportation of the injured. 

17 ‘‘§ 502. Surface transportation research 

18 ‘‘(a) IN GENERAL.— 

19 ‘‘(1) RESEARCH, DEVELOPMENT, AND TECH20 NOLOGY TRANSFER ACTIVITIES.—The Secretary may 

21 carry out research, development, and technology 

22 transfer activities with respect to— 

23 ‘‘(A) all phases of transportation planning 

24 and development (including new technologies, 

25 construction, transportation systems manage-
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1 ment and operations development, design, main2 tenance, safety, security, financing, data collec3 tion and analysis, demand forecasting, 

4 multimodal assessment, and traffic conditions); 

5 and 

6 ‘‘(B) the effect of State laws on the activities 

7 described in subparagraph (A). 

8 ‘‘(2) TESTS AND DEVELOPMENT.—The Secretary 

9 may test, develop, or assist in testing and developing, 

10 any material, invention, patented article, or process. 

11 ‘‘(3) COOPERATION, GRANTS, AND CONTRACTS.— 

12 ‘‘(A) IN GENERAL.—The Secretary may 

13 carry out this section— 

14 ‘‘(i) independently; 

15 ‘‘(ii) in cooperation with— 

16 ‘‘(I) any other Federal agency or 

17 instrumentality; and 

18 ‘‘(II) any Federal laboratory; or 

19 ‘‘(iii) by making grants to, or entering 

20 into contracts, cooperative agreements, and 

21 other transactions with— 

22 ‘‘(I) the National Academy of 

23 Sciences; 
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1 ‘‘(II) the American Association of 

2 State Highway and Transportation 

3 Officials; 

4 ‘‘(III) planning organizations; 

5 ‘‘(IV) a Federal laboratory; 

6 ‘‘(V) a State agency; 

7 ‘‘(VI) an authority, association, 

8 institution, or organization; 

9 ‘‘(VII) a for-profit or nonprofit 

10 corporation; 

11 ‘‘(VIII) a foreign country; or 

12 ‘‘(IX) any other person. 

13 ‘‘(B) COMPETITION; REVIEW.—All parties 

14 entering into contracts, cooperative agreements 

15 or other transactions with the Secretary, or re16 ceiving grants, to perform research or provide 

17 technical assistance under this section shall be 

18 selected, to the maximum extent practicable and 

19 appropriate— 

20 ‘‘(i) on a competitive basis; and 

21 ‘‘(ii) on the basis of the results of peer 

22 review of proposals submitted to the Sec23 retary. 

24 ‘‘(4) TECHNOLOGICAL INNOVATION.—The pro25 grams and activities carried out under this section 
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1 shall be consistent with the surface transportation re2 search and technology development strategic plan de3 veloped under section 508(c). 

4 ‘‘(5) FUNDS.— 

5 ‘‘(A) SPECIAL ACCOUNT.—In addition to 

6 other funds made available to carry out this sec7 tion, the Secretary shall use such funds as may 

8 be deposited by any cooperating organization or 

9 person in a special account of the Treasury es10 tablished for this purpose. 

11 ‘‘(B) USE OF FUNDS.—The Secretary shall 

12 use funds made available to carry out this sec13 tion to develop, administer, communicate, and 

14 promote the use of products of research, develop15 ment, and technology transfer programs under 

16 this section. 

17 ‘‘(b) COLLABORATIVE RESEARCH AND DEVELOP18 MENT.— 

19 ‘‘(1) IN GENERAL.—To encourage innovative so20 lutions to surface transportation problems and stimu21 late the deployment of new technology, the Secretary 

22 may carry out, on a cost-shared basis, collaborative 

23 research and development with— 

24 ‘‘(A) non-Federal entities (including State 

25 and local governments, foreign governments, col-
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1 leges and universities, corporations, institutions, 

2 partnerships, sole proprietorships, and trade as3 sociations that are incorporated or established 

4 under the laws of any State); and 

5 ‘‘(B) Federal laboratories. 

6 ‘‘(2) AGREEMENTS.—In carrying out this sub7 section, the Secretary may enter into cooperative re8 search and development agreements (as defined in sec9 tion 12 of the Stevenson-Wydler Technology Innova10 tion Act of 1980 (15 U.S.C. 3710a)). 

11 ‘‘(3) FEDERAL SHARE.— 

12 ‘‘(A) IN GENERAL.—The Federal share of 

13 the cost of activities carried out under a coopera14 tive research and development agreement entered 

15 into under this subsection shall not exceed 50 

16 percent, except that if there is substantial public 

17 interest or benefit, the Secretary may approve a 

18 greater Federal share. 

19 ‘‘(B) NON-FEDERAL SHARE.—All costs di20 rectly incurred by the non-Federal partners, in21 cluding personnel, travel, and hardware develop22 ment costs, shall be credited toward the non-Fed23 eral share of the cost of the activities described 

24 in subparagraph (A). 
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1 ‘‘(4) USE OF TECHNOLOGY.—The research, devel2 opment, or use of a technology under a cooperative re3 search and development agreement entered into under 

4 this subsection, including the terms under which the 

5 technology may be licensed and the resulting royalties 

6 may be distributed, shall be subject to the Stevenson7 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

8 3701 et seq.). 

9 ‘‘(5) WAIVER OF ADVERTISING REQUIRE10 MENTS.—Section 3709 of the Revised Statutes (41 

11 U.S.C. 5) shall not apply to a contract or agreement 

12 entered into under this chapter. 

13 ‘‘(c) CONTENTS OF RESEARCH PROGRAM.—The Sec14 retary shall include as priority areas of effort within the 

15 surface transportation research program— 

16 ‘‘(1) the development of new technologies and 

17 methods in materials, pavements, structures, design, 

18 and construction, with the objectives of— 

19 ‘‘(A)(i) increasing to 50 years the expected 

20 life of pavements; 

21 ‘‘(ii) increasing to 100 years the expected 

22 life of bridges; and 

23 ‘‘(iii) significantly increasing the durability 

24 of other infrastructure; 
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1 ‘‘(B) lowering the life-cycle costs, includ2 ing— 

3 ‘‘(i) construction costs; 

4 ‘‘(ii) maintenance costs; 

5 ‘‘(iii) operations costs; and 

6 ‘‘(vi) user costs. 

7 ‘‘(2) the development, and testing for effective8 ness, of nondestructive evaluation technologies for 

9 civil infrastructure using existing and new tech10 nologies; 

11 ‘‘(3) the investigation of— 

12 ‘‘(A) the application of current natural haz13 ard mitigation techniques to manmade hazards; 

14 and 

15 ‘‘(B) the continuation of hazard mitigation 

16 research combining manmade and natural haz17 ards; 

18 ‘‘(4) the improvement of safety— 

19 ‘‘(A) at intersections; 

20 ‘‘(B) with respect to accidents involving ve21 hicles run off the road; and 

22 ‘‘(C) on rural roads; 

23 ‘‘(5) the reduction of work zone incursions and 

24 improvement of work zone safety; 
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1 ‘‘(6) the improvement of geometric design of 

2 roads for the purpose of safety; 

3 ‘‘(7) the examination of data collected through 

4 the national bridge inventory conducted under section 

5 144 using the national bridge inspection standards 

6 established under section 151, with the objectives of 

7 determining whether— 

8 ‘‘(A) the most useful types of data are being 

9 collected; and 

10 ‘‘(B) any improvement could be made in the 

11 types of data collected and the manner in which 

12 the data is collected, with respect to bridges in 

13 the United States; 

14 ‘‘(8) the improvement of the infrastructure in15 vestment needs report described in subsection (g) 

16 through— 

17 ‘‘(A) the study and implementation of new 

18 methods of collecting better quality data, par19 ticularly with respect to performance, congestion, 

20 and infrastructure conditions; 

21 ‘‘(B) monitoring of the surface transpor22 tation system in a system-wide manner, through 

23 the use of— 
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1 ‘‘(i) intelligent transportation system 

2 technologies of traffic operations centers; 

3 and 

4 ‘‘(ii) other new data collection tech5 nologies as sources of better quality per6 formance data; 

7 ‘‘(C) the determination of the critical 

8 metrics that should be used to determine the con9 dition and performance of the surface transpor10 tation system; and 

11 ‘‘(D) the study and implementation of new 

12 methods of statistical analysis and computer 

13 models to improve the prediction of future infra14 structure investment requirements; 

15 ‘‘(9) the development of methods to improve the 

16 determination of benefits from infrastructure im17 provements, including— 

18 ‘‘(A) more accurate calculations of benefit19 to-cost ratios, considering benefits and impacts 

20 throughout local and regional transportation sys21 tems; 

22 ‘‘(B) improvements in calculating life-cycle 

23 costs; and 

24 ‘‘(C) valuation of assets; 
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1 ‘‘(10) the improvement of planning processes to 

2 better predict outcomes of transportation projects, in3 cluding the application of computer simulations in 

4 the planning process to predict outcomes of planning 

5 decisions; 

6 ‘‘(11) the multimodal applications of Geographic 

7 Information Systems and remote sensing, including 

8 such areas of application as— 

9 ‘‘(A) planning; 

10 ‘‘(B) environmental decisionmaking and 

11 project delivery; and 

12 ‘‘(C) freight movement; 

13 ‘‘(12) the development and application of meth14 ods of providing revenues to the Highway Trust Fund 

15 with the objective of offsetting potential reductions in 

16 fuel tax receipts; 

17 ‘‘(13) the development of tests and methods to de18 termine the benefits and costs to communities of 

19 major transportation investments and projects; 

20 ‘‘(14) the conduct of extreme weather research, 

21 including research to— 

22 ‘‘(A) reduce contraction and expansion 

23 damage; 

24 ‘‘(B) reduce or repair road damage caused 

25 by freezing and thawing; 
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1 ‘‘(C) improve deicing or snow removal tech2 niques; 

3 ‘‘(D) develop better methods to reduce the 

4 risk of thermal collapse, including collapse from 

5 changes in underlying permafrost; 

6 ‘‘(E) improve concrete and asphalt installa7 tion in extreme weather conditions; and 

8 ‘‘(F) make other improvements to protect 

9 highway infrastructure or enhance highway safe10 ty or performance; 

11 ‘‘(15) the improvement of surface transportation 

12 planning; 

13 ‘‘(16) environmental research; 

14 ‘‘(17) transportation system management and 

15 operations; and 

16 ‘‘(18) any other surface transportation research 

17 topics that the Secretary determines, in accordance 

18 with the strategic planning process under section 508, 

19 to be critical. 

20 ‘‘(d) ADVANCED, HIGH-RISK RESEARCH.— 

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

22 and carry out, in accordance with the surface trans23 portation research and technology development stra24 tegic plan developed under section 508(c) and re25 search priority areas described in subsection (c), an 
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1 advanced research program that addresses longer2 term, higher-risk research with potentially dramatic 

3 breakthroughs for improving the durability, efficiency, 

4 environmental impact, productivity, and safety (in5 cluding bicycle and pedestrian safety) aspects of high6 way and intermodal transportation systems. 

7 ‘‘(2) PARTNERSHIPS.—In carrying out the pro8 gram, the Secretary shall seek to develop partnerships 

9 with the public and private sectors. 

10 ‘‘(3) REPORT.—The Secretary shall include in 

11 the strategic plan required under section 508(c) a de12 scription of each of the projects, and the amount of 

13 funds expended for each project, carried out under 

14 this subsection during the fiscal year. 

15 ‘‘(e) LONG-TERM PAVEMENT PERFORMANCE PRO16 GRAM.— 

17 ‘‘(1) AUTHORITY.—The Secretary shall continue, 

18 through September 30, 2009, the long-term pavement 

19 performance program tests, monitoring, and data 

20 analysis. 

21 ‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND

22 CONTRACTS.—Under the program, the Secretary shall 

23 make grants and enter into cooperative agreements 

24 and contracts to— 
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1 ‘‘(A) monitor, material-test, and evaluate 

2 highway test sections in existence as of the date 

3 of the grant, agreement, or contract; 

4 ‘‘(B) analyze the data obtained in carrying 

5 out subparagraph (A); and 

6 ‘‘(C) prepare products to fulfill program ob7 jectives and meet future pavement technology 

8 needs. 

9 ‘‘(3) CONCLUSION OF PROGRAM.— 

10 ‘‘(A) SUMMARY REPORT.—The Secretary 

11 shall include in the strategic plan required under 

12 section 508(c) a report on the initial conclusions 

13 of the long-term pavement performance program 

14 that includes— 

15 ‘‘(i) an analysis of any research objec16 tives that remain to be achieved under the 

17 program; 

18 ‘‘(ii) an analysis of other associated 

19 longer-term expenditures under the program 

20 that are in the public interest; 

21 ‘‘(iii) a detailed plan regarding the 

22 storage, maintenance, and user support of 

23 the database, information management sys24 tem, and materials reference library of the 

25 program; 
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1 ‘‘(iv) a schedule for continued imple2 mentation of the necessary data collection 

3 and analysis and project plan under the 

4 program; and 

5 ‘‘(v) an estimate of the costs of car6 rying out each of the activities described in 

7 clauses (i) through (iv) for each fiscal year 

8 during which the program is carried out. 

9 ‘‘(B) DEADLINE; USEFULNESS OF AD10 VANCES.—The Secretary shall, to the maximum 

11 extent practicable— 

12 ‘‘(i) ensure that the long-term pave13 ment performance program is concluded not 

14 later than September 30, 2009; and 

15 ‘‘(ii) make such allowances as are nec16 essary to ensure the usefulness of the techno17 logical advances resulting from the pro18 gram. 

19 ‘‘(f) SEISMIC RESEARCH.—The Secretary shall— 

20 ‘‘(1) in consultation and cooperation with Fed21 eral agencies participating in the National Earth22 quake Hazards Reduction Program established by sec23 tion 5 of the Earthquake Hazards Reduction Act of 

24 1977 (42 U.S.C. 7704), coordinate the conduct of seis25 mic research; 
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1 ‘‘(2) take such actions as are necessary to ensure 

2 that the coordination of the research is consistent 

3 with— 

4 ‘‘(A) planning and coordination activities 

5 of the Director of the Federal Emergency Man6 agement Agency under section 5(b)(1) of that Act 

7 (42 U.S.C. 7704(b)(1)); and 

8 ‘‘(B) the plan developed by the Director of 

9 the Federal Emergency Management Agency 

10 under section 8(b) of that Act (42 U.S.C. 

11 7705b(b)); and 

12 ‘‘(3) in cooperation with the Center for Civil En13 gineering Research at the University of Nevada, Reno, 

14 carry out a seismic research program— 

15 ‘‘(A) to study the vulnerability of the Fed16 eral-aid highway system and other surface trans17 portation systems to seismic activity; 

18 ‘‘(B) to develop and implement cost-effective 

19 methods to reduce the vulnerability; and 

20 ‘‘(C) to conduct seismic research and up21 grade earthquake simulation facilities as nec22 essary to carry out the program. 

23 ‘‘(g) INFRASTRUCTURE INVESTMENT NEEDS RE24 PORT.— 
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1 ‘‘(1) IN GENERAL.—Not later than July 31, 

2 2004, and July 31 of every second year thereafter, the 

3 Secretary shall submit to the Committee on Environ4 ment and Public Works of the Senate and the Com5 mittee on Transportation and Infrastructure of the 

6 House of Representatives a report that describes— 

7 ‘‘(A) estimates of the future highway and 

8 bridge needs of the United States; and 

9 ‘‘(B) the backlog of current highway and 

10 bridge needs. 

11 ‘‘(2) COMPARISON WITH PRIOR REPORTS.—Each 

12 report under paragraph (1) shall provide the means, 

13 including all necessary information, to relate and 

14 compare the conditions and service measures used in 

15 the previous biennial reports. 

16 ‘‘(h) SECURITY RELATED RESEARCH AND TECH17 NOLOGY TRANSFER ACTIVITIES.— 

18 ‘‘(1) IN GENERAL.—Not later than 180 days 

19 after the date of enactment of the Safe, Accountable, 

20 Flexible, and Efficient Transportation Equity Act of 

21 2004, the Secretary, in consultation with the Sec22 retary of Homeland Security, with key stakeholder 

23 input (including State transportation departments) 

24 shall develop a 5-year strategic plan for research and 

25 technology transfer and deployment activities per-
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1 taining to the security aspects of highway infrastruc2 ture and operations. 

3 ‘‘(2) COMPONENTS OF PLAN.—The plan shall in4 clude— 

5 ‘‘(A) an identification of which agencies are 

6 responsible for the conduct of various research 

7 and technology transfer activities; 

8 ‘‘(B) a description of the manner in which 

9 those activities will be coordinated; and 

10 ‘‘(C) a description of the process to be used 

11 to ensure that the advances derived from relevant 

12 activities supported by the Federal Highway Ad13 ministration are consistent with the operational 

14 guidelines, policies, recommendations, and regu15 lations of the Department of Homeland Security; 

16 and 

17 ‘‘(D) a systematic evaluation of the research 

18 that should be conducted to address, at a min19 imum— 

20 ‘‘(i) vulnerabilities of, and measures 

21 that may be taken to improve, emergency 

22 response capabilities and evacuations; 

23 ‘‘(ii) recommended upgrades of traffic 

24 management during crises; 
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1 ‘‘(iii) integrated, interoperable emer2 gency communications among the public, 

3 the military, law enforcement, fire and 

4 emergency medical services, and transpor5 tation agencies; 

6 ‘‘(iv) protection of critical, security-re7 lated infrastructure; and 

8 ‘‘(v) structural reinforcement of key fa9 cilities. 

10 ‘‘(3) SUBMISSION.—On completion of the plan 

11 under this subsection, the Secretary shall submit to 

12 the Committee on Environment and Public Works of 

13 the Senate and the Committee on Transportation and 

14 Infrastructure of the House of Representatives— 

15 ‘‘(A) a copy of the plan developed under 

16 paragraph (1); and 

17 ‘‘(B) a copy of a memorandum of under18 standing specifying coordination strategies and 

19 assignment of responsibilities covered by the plan 

20 that is signed by the Secretary and the Secretary 

21 of Homeland Security. 

22 ‘‘(i) HIGH-PERFORMANCE CONCRETE BRIDGE RE23 SEARCH AND TECHNOLOGY TRANSFER PROGRAM.—In ac24 cordance with the objectives described in subsection (c)(1) 

25 and the requirements under sections 503(b)(4) and 504(b), 
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1 the Secretary shall carry out a program to demonstrate the 

2 application of high-performance concrete in the construc3 tion and rehabilitation of bridges. 

4 ‘‘(j) BIOBASED TRANSPORTATION RESEARCH.—There 

5 shall be available from the Highway Trust Fund (other 

6 than the Mass Transit Account) $18,000,000 for each of fis7 cal years 2004 through 2009 equally divided and available 

8 to carry out biobased research of national importance at 

9 the National Biodiesel Board and at research centers identi10 fied in section 9011 of Public Law 107–171. 

11 ‘‘§ 503. Technology application program 

12 ‘‘(a) TECHNOLOGY APPLICATION INITIATIVES AND

13 PARTNERSHIPS PROGRAM.— 

14 ‘‘(1) ESTABLISHMENT.—The Secretary, in con15 sultation with interested stakeholders, shall develop 

16 and administer a national technology and innovation 

17 application initiatives and partnerships program. 

18 ‘‘(2) PURPOSE.—The purpose of the program 

19 shall be to significantly accelerate the adoption of 

20 technology and innovation by the surface transpor21 tation community. 

22 ‘‘(3) APPLICATION GOALS.— 

23 ‘‘(A) ESTABLISHMENT.—Not later than 180 

24 days after the date of enactment of the Safe, Ac25 countable, Flexible, and Efficient Transportation 
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1 Equity Act of 2004, the Secretary, in consulta2 tion with the Surface Transportation Research 

3 Technology Advisory Committee, State transpor4 tation departments, and other interested stake5 holders, shall establish, as part of the surface 

6 transportation research and technology develop7 ment strategic plan under section 508(c), goals 

8 to carry out paragraph (1). 

9 ‘‘(B) DESIGN.—Each of the goals and the 

10 program developed to achieve the goals shall be 

11 designed to provide tangible benefits, with respect 

12 to transportation systems, in the areas of effi13 ciency, safety, reliability, service life, environ14 mental protection, and sustainability. 

15 ‘‘(C) STRATEGIES FOR ACHIEVEMENT.—For 

16 each goal, the Secretary, in cooperation with rep17 resentatives of the transportation community, 

18 such as States, local governments, the private 

19 sector, and academia, shall use domestic and 

20 international technology to develop strategies 

21 and initiatives to achieve the goal, including 

22 technical assistance in deploying technology and 

23 mechanisms for sharing information among pro24 gram participants. 
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1 ‘‘(4) INTEGRATION WITH OTHER PROGRAMS.— 

2 The Secretary shall integrate activities carried out 

3 under this subsection with the efforts of the Secretary 

4 to— 

5 ‘‘(A) disseminate the results of research 

6 sponsored by the Secretary; and 

7 ‘‘(B) facilitate technology transfer. 

8 ‘‘(5) LEVERAGING OF FEDERAL RESOURCES.—In 

9 selecting projects to be carried out under this sub10 section, the Secretary shall give preference to projects 

11 that leverage Federal funds with other significant 

12 public or private resources. 

13 ‘‘(6) GRANTS, COOPERATIVE AGREEMENTS, AND

14 CONTRACTS.—Under the program, the Secretary may 

15 make grants and enter into cooperative agreements 

16 and contracts to foster alliances and support efforts to 

17 stimulate advances in transportation technology. 

18 ‘‘(7) REPORTS.—The results and progress of ac19 tivities carried out under this section shall be pub20 lished as part of the annual transportation research 

21 report prepared by the Secretary under section 

22 508(c)(5). 

23 ‘‘(8) ALLOCATION.—To the extent appropriate to 

24 achieve the goals established under paragraph (3), the 

25 Secretary may further allocate funds made available 
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1 to carry out this section to States for use by those 

2 States. 

3 ‘‘(b) INNOVATIVE SURFACE TRANSPORTATION INFRA4 STRUCTURE RESEARCH AND CONSTRUCTION PROGRAM.— 

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

6 and carry out a program for the application of inno7 vative material, design, and construction technologies 

8 in the construction, preservation, and rehabilitation 

9 of elements of surface transportation infrastructure. 

10 ‘‘(2) GOALS.—The goals of the program shall in11 clude— 

12 ‘‘(A) the development of new, cost-effective, 

13 and innovative materials; 

14 ‘‘(B) the reduction of maintenance costs and 

15 life-cycle costs of elements of infrastructure, in16 cluding the costs of new construction, replace17 ment, and rehabilitation; 

18 ‘‘(C) the development of construction tech19 niques to increase safety and reduce construction 

20 time and traffic congestion; 

21 ‘‘(D) the development of engineering design 

22 criteria for innovative products and materials 

23 for use in surface transportation infrastructure; 
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1 ‘‘(E) the development of highway bridges 

2 and structures that will withstand natural disas3 ters and disasters caused by human activity; and 

4 ‘‘(F) the development of new, nondestructive 

5 technologies and techniques for the evaluation of 

6 elements of transportation infrastructure. 

7 ‘‘(3) GRANTS, COOPERATIVE AGREEMENTS, AND

8 CONTRACTS.— 

9 ‘‘(A) IN GENERAL.—Under the program, the 

10 Secretary shall make grants to, and enter into 

11 cooperative agreements and contracts with— 

12 ‘‘(i) States, other Federal agencies, 

13 universities and colleges, private sector enti14 ties, and nonprofit organizations, to pay the 

15 Federal share of the cost of research, devel16 opment, and technology transfer concerning 

17 innovative materials and methods; and 

18 ‘‘(ii) States, to pay the Federal share 

19 of the cost of repair, rehabilitation, replace20 ment, and new construction of elements of 

21 surface transportation infrastructure that 

22 demonstrate the application of innovative 

23 materials and methods. 

24 ‘‘(B) APPLICATIONS.— 
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1 ‘‘(i) IN GENERAL.—To receive a grant 

2 under this subsection, an entity described in 

3 subparagraph (A) shall submit to the Sec4 retary an application in such form and 

5 containing such information as the Sec6 retary may require. 

7 ‘‘(ii) APPROVAL.—The Secretary shall 

8 select and approve an application based on 

9 whether the proposed project that is the sub10 ject of the application would meet the goals 

11 described in paragraph (2). 

12 ‘‘(4) TECHNOLOGY AND INFORMATION TRANS13 FER.—The Secretary shall take such action as is nec14 essary to— 

15 ‘‘(A) ensure that the information and tech16 nology resulting from research conducted under 

17 paragraph (3) is made available to State and 

18 local transportation departments and other in19 terested parties, as specified by the Secretary; 

20 and 

21 ‘‘(B) encourage the use of the information 

22 and technology. 

23 ‘‘(5) FEDERAL SHARE.—The Federal share of the 

24 cost of a project under this section shall be determined 

25 by the Secretary. 
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1 ‘‘§ 504. Training and education 

2 ‘‘(a) NATIONAL HIGHWAY INSTITUTE.— 

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

4 ‘‘(A) operate, in the Federal Highway Ad5 ministration, a National Highway Institute (re6 ferred to in this subsection as the ‘Institute’); 

7 and 

8 ‘‘(B) administer, through the Institute, the 

9 authority vested in the Secretary by this title or 

10 by any other law for the development and con11 duct of education and training programs relat12 ing to highways. 

13 ‘‘(2) DUTIES OF THE INSTITUTE.—In coopera14 tion with State transportation departments, indus15 tries in the United States, and national or inter16 national entities, the Institute shall develop and ad17 minister education and training programs of instruc18 tion for— 

19 ‘‘(A) Federal Highway Administration, 

20 State, and local transportation agency employ21 ees; 

22 ‘‘(B) regional, State, and metropolitan 

23 planning organizations; 

24 ‘‘(C) State and local police, public safety, 

25 and motor vehicle employees; and 
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1 ‘‘(D) United States citizens and foreign na2 tionals engaged or to be engaged in surface 

3 transportation work of interest to the United 

4 States. 

5 ‘‘(3) COURSES.— 

6 ‘‘(A) IN GENERAL.—The Institute shall— 

7 ‘‘(i) develop or update existing courses 

8 in asset management, including courses that 

9 include such components as— 

10 ‘‘(I) the determination of life-cycle 

11 costs; 

12 ‘‘(II) the valuation of assets; 

13 ‘‘(III) benefit-to-cost ratio calcula14 tions; and 

15 ‘‘(IV) objective decisionmaking 

16 processes for project selection; and 

17 ‘‘(ii) continually develop courses relat18 ing to the application of emerging tech19 nologies for— 

20 ‘‘(I) transportation infrastructure 

21 applications and asset management; 

22 ‘‘(II) intelligent transportation 

23 systems; 

24 ‘‘(III) operations (including secu25 rity operations); 
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1 ‘‘(IV) the collection and archiving 

2 of data; 

3 ‘‘(V) expediting the planning and 

4 development of transportation projects; 

5 and 

6 ‘‘(VI) the intermodal movement of 

7 individuals and freight. 

8 ‘‘(B) ADDITIONAL COURSES.—In addition 

9 to the courses developed under subparagraph (A), 

10 the Institute, in consultation with State trans11 portation departments, metropolitan planning 

12 organizations, and the American Association of 

13 State Highway and Transportation Officials, 

14 may develop courses relating to technology, meth15 ods, techniques, engineering, construction, safety, 

16 maintenance, environmental mitigation and 

17 compliance, regulations, management, inspec18 tion, and finance. 

19 ‘‘(C) REVISION OF COURSES OFFERED.— 

20 The Institute shall periodically— 

21 ‘‘(i) review the course inventory of the 

22 Institute; and 

23 ‘‘(ii) revise or cease to offer courses 

24 based on course content, applicability, and 

25 need. 
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1 ‘‘(4) ELIGIBILITY; FEDERAL SHARE.—The funds 

2 apportioned to a State under section 104(b)(3) for the 

3 surface transportation program shall be available for 

4 expenditure by the State transportation department 

5 for the payment of not to exceed 80 percent of the cost 

6 of tuition and direct educational expenses (excluding 

7 salaries) in connection with the education and train8 ing of employees of State and local transportation 

9 agencies in accordance with this subsection. 

10 ‘‘(5) FEDERAL RESPONSIBILITY.— 

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

12 subparagraph (B), education and training of 

13 employees of Federal, State, and local transpor14 tation (including highway) agencies authorized 

15 under this subsection may be provided— 

16 ‘‘(i) by the Secretary, at no cost to the 

17 States and local governments, if the Sec18 retary determines that provision at no cost 

19 is in the public interest; or 

20 ‘‘(ii) by the State, through grants, co21 operative agreements, and contracts with 

22 public and private agencies, institutions, 

23 individuals, and the Institute. 

24 ‘‘(B) PAYMENT OF FULL COST BY PRIVATE

25 PERSONS.—Private agencies, international or 
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1 foreign entities, and individuals shall pay the 

2 full cost of any education and training (includ3 ing the cost of course development) received by 

4 the agencies, entities, and individuals, unless the 

5 Secretary determines that payment of a lesser 

6 amount of the cost is of critical importance to 

7 the public interest. 

8 ‘‘(6) TRAINING FELLOWSHIPS; COOPERATION.— 

9 The Institute may— 

10 ‘‘(A) engage in training activities author11 ized under this subsection, including the grant12 ing of training fellowships; and 

13 ‘‘(B) exercise the authority of the Institute 

14 independently or in cooperation with any— 

15 ‘‘(i) other Federal or State agency; 

16 ‘‘(ii) association, authority, institu17 tion, or organization; 

18 ‘‘(iii) for-profit or nonprofit corpora19 tion; 

20 ‘‘(iv) national or international entity; 

21 ‘‘(v) foreign country; or 

22 ‘‘(vi) person. 

23 ‘‘(7) COLLECTION OF FEES.— 

24 ‘‘(A) IN GENERAL.—In accordance with this 

25 subsection, the Institute may assess and collect 
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1 fees to defray the costs of the Institute in devel2 oping or administering education and training 

3 programs under this subsection. 

4 ‘‘(B) PERSONS SUBJECT TO FEES.—Fees 

5 may be assessed and collected under this sub6 section only with respect to— 

7 ‘‘(i) persons and entities for whom edu8 cation or training programs are developed 

9 or administered under this subsection; and 

10 ‘‘(ii) persons and entities to whom edu11 cation or training is provided under this 

12 subsection. 

13 ‘‘(C) AMOUNT OF FEES.—The fees assessed 

14 and collected under this subsection shall be estab15 lished in a manner that ensures that the liability 

16 of any person or entity for a fee is reasonably 

17 based on the proportion of the costs referred to 

18 in subparagraph (A) that relate to the person or 

19 entity. 

20 ‘‘(D) USE.—All fees collected under this 

21 subsection shall be used, without further appro22 priation, to defray costs associated with the de23 velopment or administration of education and 

24 training programs authorized under this sub25 section. 
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1 ‘‘(8) RELATION TO FEES.—The funds made 

2 available to carry out this subsection may be com3 bined with or held separate from the fees collected 

4 under— 

5 ‘‘(A) paragraph (7); 

6 ‘‘(B) memoranda of understanding; 

7 ‘‘(C) regional compacts; and 

8 ‘‘(D) other similar agreements. 

9 ‘‘(b) LOCAL TECHNICAL ASSISTANCE PROGRAM.— 

10 ‘‘(1) AUTHORITY.—The Secretary shall carry out 

11 a local technical assistance program that will provide 

12 access to surface transportation technology to— 

13 ‘‘(A) highway and transportation agencies 

14 in urbanized areas; 

15 ‘‘(B) highway and transportation agencies 

16 in rural areas; 

17 ‘‘(C) contractors that perform work for the 

18 agencies; and 

19 ‘‘(D) infrastructure security. 

20 ‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND

21 CONTRACTS.—The Secretary may make grants and 

22 enter into cooperative agreements and contracts to 

23 provide education and training, technical assistance, 

24 and related support services to— 
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1 ‘‘(A) assist rural, local transportation agen2 cies and tribal governments, and the consultants 

3 and construction personnel working for the agen4 cies and governments, to— 

5 ‘‘(i) develop and expand expertise in 

6 road and transportation areas (including 

7 pavement, bridge, concrete structures, inter8 modal connections, safety management sys9 tems, intelligent transportation systems, in10 cident response, operations, and traffic safe11 ty countermeasures); 

12 ‘‘(ii) improve roads and bridges; 

13 ‘‘(iii) enhance— 

14 ‘‘(I) programs for the movement of 

15 passengers and freight; and 

16 ‘‘(II) intergovernmental transpor17 tation planning and project selection; 

18 and 

19 ‘‘(iv) deal effectively with special 

20 transportation-related problems by pre21 paring and providing training packages, 

22 manuals, guidelines, and technical resource 

23 materials; 

24 ‘‘(B) develop technical assistance for tour25 ism and recreational travel; 
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1 ‘‘(C) identify, package, and deliver trans2 portation technology and traffic safety informa3 tion to local jurisdictions to assist urban trans4 portation agencies in developing and expanding 

5 their ability to deal effectively with transpor6 tation-related problems (particularly the pro7 motion of regional cooperation); 

8 ‘‘(D) operate, in cooperation with State 

9 transportation departments and universities— 

10 ‘‘(i) local technical assistance program 

11 centers designated to provide transportation 

12 technology transfer services to rural areas 

13 and to urbanized areas; and 

14 ‘‘(ii) local technical assistance program 

15 centers designated to provide transportation 

16 technical assistance to tribal governments; 

17 and 

18 ‘‘(E) allow local transportation agencies 

19 and tribal governments, in cooperation with the 

20 private sector, to enhance new technology imple21 mentation. 

22 ‘‘(c) RESEARCH FELLOWSHIPS.— 

23 ‘‘(1) GENERAL AUTHORITY.—The Secretary, act24 ing independently or in cooperation with other Fed25 eral agencies and instrumentalities, may make grants 
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1 for research fellowships for any purpose for which re2 search is authorized by this chapter. 

3 ‘‘(2) DWIGHT DAVID EISENHOWER TRANSPOR4 TATION FELLOWSHIP PROGRAM.—The Secretary shall 

5 establish and implement a transportation research fel6 lowship program, to be known as the ‘Dwight David 

7 Eisenhower Transportation Fellowship Program’, for 

8 the purpose of attracting qualified students to the 

9 field of transportation. 

10 ‘‘§ 505. State planning and research 

11 ‘‘(a) IN GENERAL.—Two percent of the sums appor12 tioned to a State for fiscal year 2004 and each fiscal year 

13 thereafter under sections 104 (other than subsections (f) and 

14 (h)) and 144 shall be available for expenditure by the State, 

15 in consultation with the Secretary, only for— 

16 ‘‘(1) the conduct of engineering and economic 

17 surveys and investigations; 

18 ‘‘(2) the planning of— 

19 ‘‘(A) future highway programs and local 

20 public transportation systems; and 

21 ‘‘(B) the financing of those programs and 

22 systems, including metropolitan and statewide 

23 planning under sections 134 and 135; 

24 ‘‘(3) the development and implementation of 

25 management systems under section 303; 
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1 ‘‘(4) the conduct of studies on— 

2 ‘‘(A) the economy, safety, and convenience 

3 of surface transportation systems; and 

4 ‘‘(B) the desirable regulation and equitable 

5 taxation of those systems; 

6 ‘‘(5) research, development, and technology trans7 fer activities necessary in connection with the plan8 ning, design, construction, management, and mainte9 nance of highway, public transportation, and inter10 modal transportation systems; 

11 ‘‘(6) the conduct of studies, research, and train12 ing relating to the engineering standards and con13 struction materials for surface transportation systems 

14 described in paragraph (5) (including the evaluation 

15 and accreditation of inspection and testing and the 

16 regulation of and charging for the use of the stand17 ards and materials); and 

18 ‘‘(7) the conduct of activities relating to the 

19 planning of real-time monitoring elements. 

20 ‘‘(b) MINIMUM EXPENDITURES ON RESEARCH, DEVEL21 OPMENT, AND TECHNOLOGY TRANSFER ACTIVITIES.— 

22 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

23 not less than 25 percent of the funds subject to sub24 section (a) that are apportioned to a State for a fiscal 
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1 year shall be expended by the State for research, de2 velopment, and technology transfer activities that— 

3 ‘‘(A) are described in subsection (a); and 

4 ‘‘(B) relate to highway, public transpor5 tation, and intermodal transportation systems. 

6 ‘‘(2) WAIVERS.—The Secretary may waive the 

7 application of paragraph (1) with respect to a State 

8 for a fiscal year if— 

9 ‘‘(A) the State certifies to the Secretary for 

10 the fiscal year that total expenditures by the 

11 State for transportation planning under sections 

12 134 and 135 will exceed 75 percent of the funds 

13 described in paragraph (1); and 

14 ‘‘(B) the Secretary accepts the certification 

15 of the State. 

16 ‘‘(3) NONAPPLICABILITY OF ASSESSMENT.— 

17 Funds expended under paragraph (1) shall not be 

18 considered to be part of the extramural budget of the 

19 agency for the purpose of section 9 of the Small Busi20 ness Act (15 U.S.C. 638). 

21 ‘‘(c) FEDERAL SHARE.—The Federal share of the cost 

22 of a project carried out using funds subject to subsection 

23 (a) shall be the share applicable under section 120(b), as 

24 adjusted under subsection (d) of that section. 
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1 ‘‘(d) ADMINISTRATION OF SUMS.—Funds subject to 

2 subsection (a) shall be— 

3 ‘‘(1) combined and administered by the Sec4 retary as a single fund; and 

5 ‘‘(2) available for obligation for the period de6 scribed in section 118(b)(2). 

7 ‘‘(e) ELIGIBLE USE OF STATE PLANNING AND RE8 SEARCH FUNDS.—A State, in coordination with the Sec9 retary, may obligate funds made available to carry out this 

10 section for any purpose authorized under section 506(a). 

11 ‘‘§ 506. International highway transportation out12 reach program 

13 ‘‘(a) ESTABLISHMENT.—The Secretary may establish 

14 an international highway transportation outreach pro15 gram— 

16 ‘‘(1) to inform the United States highway com17 munity of technological innovations in foreign coun18 tries that could significantly improve highway trans19 portation in the United States; 

20 ‘‘(2) to promote United States highway transpor21 tation expertise, goods, and services in foreign coun22 tries; and 

23 ‘‘(3) to increase transfers of United States high24 way transportation technology to foreign countries. 
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1 ‘‘(b) ACTIVITIES.—Activities carried out under the 

2 program may include— 

3 ‘‘(1) the development, monitoring, assessment, 

4 and dissemination in the United States of informa5 tion about highway transportation innovations in 

6 foreign countries that could significantly improve 

7 highway transportation in the United States; 

8 ‘‘(2) research, development, demonstration, train9 ing, and other forms of technology transfer and ex10 change; 

11 ‘‘(3) the provision to foreign countries, through 

12 participation in trade shows, seminars, expositions, 

13 and other similar activities, of information relating 

14 to the technical quality of United States highway 

15 transportation goods and services; 

16 ‘‘(4) the offering of technical services of the Fed17 eral Highway Administration that cannot be readily 

18 obtained from private sector firms in the United 

19 States for incorporation into the proposals of those 

20 firms undertaking highway transportation projects 

21 outside the United States, if the costs of the technical 

22 services will be recovered under the terms of the 

23 project; 
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1 ‘‘(5) the conduct of studies to assess the need for, 

2 or feasibility of, highway transportation improve3 ments in foreign countries; and 

4 ‘‘(6) the gathering and dissemination of informa5 tion on foreign transportation markets and indus6 tries. 

7 ‘‘(c) COOPERATION.—The Secretary may carry out 

8 this section in cooperation with any appropriate— 

9 ‘‘(1) Federal, State, or local agency; 

10 ‘‘(2) authority, association, institution, or orga11 nization; 

12 ‘‘(3) for-profit or nonprofit corporation; 

13 ‘‘(4) national or international entity; 

14 ‘‘(5) foreign country; or 

15 ‘‘(6) person. 

16 ‘‘(d) FUNDS.— 

17 ‘‘(1) CONTRIBUTIONS.—Funds available to carry 

18 out this section shall include funds deposited by any 

19 cooperating organization or person into a special ac20 count of the Treasury established for this purpose. 

21 ‘‘(2) ELIGIBLE USES OF FUNDS.—The funds de22 posited into the account, and other funds available to 

23 carry out this section, shall be available to cover the 

24 cost of any activity eligible under this section, includ25 ing the cost of— 
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1 ‘‘(A) promotional materials; 

2 ‘‘(B) travel; 

3 ‘‘(C) reception and representation expenses; 

4 and 

5 ‘‘(D) salaries and benefits. 

6 ‘‘(3) REIMBURSEMENTS FOR SALARIES AND BEN7 EFITS.—Reimbursements for salaries and benefits of 

8 Department of Transportation employees providing 

9 services under this section shall be credited to the ac10 count. 

11 ‘‘(e) REPORT—For each fiscal year, the Secretary shall 

12 submit to the Committee on Environment and Public Works 

13 of the Senate and the Committee on Transportation and 

14 Infrastructure of the House of Representatives a report that 

15 describes the destinations and individual trip costs of inter16 national travel conducted in carrying out activities de17 scribed in this section. 

18 ‘‘§ 507. Surface transportation-environmental cooper19 ative research program 

20 ‘‘(a) IN GENERAL.—The Secretary shall establish and 

21 carry out a surface transportation-environmental coopera22 tive research program. 

23 ‘‘(b) CONTENTS.—The program carried out under this 

24 section may include research— 
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1 ‘‘(1) to develop more accurate models for evalu2 ating transportation control measures and transpor3 tation system designs that are appropriate for use by 

4 State and local governments (including metropolitan 

5 planning organizations) in designing implementation 

6 plans to meet Federal, State, and local environmental 

7 requirements; 

8 ‘‘(2) to improve understanding of the factors that 

9 contribute to the demand for transportation; 

10 ‘‘(3) to develop indicators of economic, social, 

11 and environmental performance of transportation sys12 tems to facilitate analysis of potential alternatives; 

13 ‘‘(4) to meet additional priorities as determined 

14 by the Secretary in the strategic planning process 

15 under section 508; and 

16 ‘‘(5) to refine, through the conduct of workshops, 

17 symposia, and panels, and in consultation with stake18 holders (including the Department of Energy, the En19 vironmental Protection Agency, and other appro20 priate Federal and State agencies and associations) 

21 the scope and research emphases of the program. 

22 ‘‘(c) PROGRAM ADMINISTRATION.—The Secretary 

23 shall— 

24 ‘‘(1) administer the program established under 

25 this section; and 
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1 ‘‘(2) ensure, to the maximum extent practicable, 

2 that— 

3 ‘‘(A) the best projects and researchers are se4 lected to conduct research in the priority areas 

5 described in subsection (b)— 

6 ‘‘(i) on the basis of merit of each sub7 mitted proposal; and 

8 ‘‘(ii) through the use of open solicita9 tions and selection by a panel of appro10 priate experts; 

11 ‘‘(B) a qualified, permanent core staff with 

12 the ability and expertise to manage a large 

13 multiyear budget is used; 

14 ‘‘(C) the stakeholders are involved in the 

15 governance of the program, at the executive, over16 all program, and technical levels, through the use 

17 of expert panels and committees; and 

18 ‘‘(D) there is no duplication of research ef19 fort between the program established under this 

20 section and the new strategic highway research 

21 program established under section 509. 

22 ‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The Sec23 retary may make grants to, and enter into cooperative 

24 agreements with, the National Academy of Sciences to carry 

25 out such activities relating to the research, technology, and 
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1 technology transfer activities described in subsections (b) 

2 and (c) as the Secretary determines to be appropriate. 

3 ‘‘§ 508. Surface transportation research technology de4 ployment and strategic planning 

5 ‘‘(a) PLANNING.— 

6 ‘‘(1) ESTABLISHMENT.—The Secretary shall— 

7 ‘‘(A) establish, in accordance with section 

8 306 of title 5, a strategic planning process 

9 that— 

10 ‘‘(i) enhances effective implementation 

11 of this section through the establishment in 

12 accordance with paragraph (2) of the Sur13 face Transportation Research Technology 

14 Advisory Committee; and 

15 ‘‘(ii) focuses on surface transportation 

16 research funded through paragraphs (1), 

17 (2), (4), and (5) of section 2001(a) of the 

18 Safe, Accountable, Flexible, and Efficient 

19 Transportation Equity Act of 2004, taking 

20 into consideration national surface trans21 portation system needs and intermodality 

22 requirements; 

23 ‘‘(B) coordinate Federal surface transpor24 tation research, technology development, and de25 ployment activities; 
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1 ‘‘(C) at such intervals as are appropriate 

2 and practicable, measure the results of those ac3 tivities and the ways in which the activities af4 fect the performance of the surface transportation 

5 systems of the United States; and 

6 ‘‘(D) ensure, to the maximum extent prac7 ticable, that planning and reporting activities 

8 carried out under this section are coordinated 

9 with all other surface transportation planning 

10 and reporting requirements. 

11 ‘‘(2) SURFACE TRANSPORTATION RESEARCH

12 TECHNOLOGY ADVISORY COMMITTEE.— 

13 ‘‘(A) ESTABLISHMENT.—Not later than 90 

14 days after the date of enactment of the Safe, Ac15 countable, Flexible, and Efficient Transportation 

16 Equity Act of 2004, the Secretary shall establish 

17 a committee to be known as the ‘Surface Trans18 portation Research Technology Advisory Com19 mittee’ (referred to in this section as the ‘Com20 mittee’). 

21 ‘‘(B) MEMBERSHIP.—The Committee shall 

22 be composed of 12 members appointed by the 

23 Secretary— 

24 ‘‘(i) each of which shall have expertise 

25 in a particular area relating to Federal 
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1 surface transportation programs, includ2 ing— 

3 ‘‘(I) safety; 

4 ‘‘(II) operations; 

5 ‘‘(III) infrastructure (including 

6 pavements and structures); 

7 ‘‘(IV) planning and environment; 

8 ‘‘(V) policy; and 

9 ‘‘(VI) asset management; and 

10 ‘‘(ii) of which— 

11 ‘‘(I) 3 members shall be individ12 uals representing the Federal Govern13 ment; 

14 ‘‘(II) 3 members— 

15 ‘‘(aa) shall be exceptionally 

16 qualified to serve on the Com17 mittee, as determined by the Sec18 retary, based on education, train19 ing, and experience; and 

20 ‘‘(bb) shall not be officers or 

21 employees of the United States; 

22 ‘‘(III) 3 members— 

23 ‘‘(aa) shall represent the 

24 transportation industry (includ25 ing the pavement industry); and 
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1 ‘‘(bb) shall not be officers or 

2 employees of the United States; 

3 and 

4 ‘‘(IV) 3 members shall represent 

5 State transportation departments from 

6 3 different geographical regions of the 

7 United States. 

8 ‘‘(C) MEETINGS.—The advisory subcommit9 tees shall meet on a regular basis, but not less 

10 than twice each year. 

11 ‘‘(D) DUTIES.—The Committee shall pro12 vide to the Secretary, on a continuous basis, ad13 vice and guidance relating to— 

14 ‘‘(i) the determination of surface trans15 portation research priorities; 

16 ‘‘(ii) the improvement of the research 

17 planning and implementation process; 

18 ‘‘(iii) the design and selection of re19 search projects; 

20 ‘‘(iv) the review of research results; 

21 ‘‘(v) the planning and implementation 

22 of technology transfer activities and 

23 ‘‘(vi) the formulation of the surface 

24 transportation research and technology de-
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1 ployment and deployment strategic plan re2 quired under subsection (c). 

3 ‘‘(E) AUTHORIZATION OF APPROPRIA4 TIONS.—There is authorized to be appropriated 

5 from the Highway Trust Fund (other than the 

6 Mass Transit Account) to carry out this para7 graph $200,000 for each fiscal year. 

8 ‘‘(b) IMPLEMENTATION.—The Secretary shall— 

9 ‘‘(1) provide for the integrated planning, coordi10 nation, and consultation among the operating admin11 istrations of the Department of Transportation, all 

12 other Federal agencies with responsibility for surface 

13 transportation research and technology development, 

14 State and local governments, institutions of higher 

15 education, industry, and other private and public sec16 tor organizations engaged in surface transportation17 related research and development activities; and 

18 ‘‘(2) ensure that the surface transportation re19 search and technology development programs of the 

20 Department do not duplicate other Federal, State, or 

21 private sector research and development programs. 

22 ‘‘(c) SURFACE TRANSPORTATION RESEARCH AND

23 TECHNOLOGY DEPLOYMENT STRATEGIC PLAN.— 

24 ‘‘(1) IN GENERAL.—After receiving, and based 

25 on, extensive consultation and input from stakeholders 
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1 representing the transportation community and the 

2 Surface Transportation Research Advisory Com3 mittee, the Secretary shall, not later than 1 year after 

4 the date of enactment of the Safe, Accountable, Flexi5 ble, and Efficient Transportation Equity Act of 2004, 

6 complete, and shall periodically update thereafter, a 

7 strategic plan for each of the core surface transpor8 tation research areas, including— 

9 ‘‘(A) safety; 

10 ‘‘(B) operations; 

11 ‘‘(C) infrastructure (including pavements 

12 and structures); 

13 ‘‘(D) planning and environment; 

14 ‘‘(E) policy; and 

15 ‘‘(F) asset management. 

16 ‘‘(2) COMPONENTS.—The strategic plan shall 

17 specify— 

18 ‘‘(A) surface transportation research objec19 tives and priorities; 

20 ‘‘(B) specific surface transportation research 

21 projects to be conducted; 

22 ‘‘(C) recommended technology transfer ac23 tivities to promote the deployment of advances 

24 resulting from the surface transportation re25 search conducted; and 
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1 ‘‘(D) short- and long-term technology devel2 opment and deployment activities. 

3 ‘‘(3) REVIEW AND SUBMISSION OF FINDINGS.— 

4 The Secretary shall enter into a contract with the 

5 Transportation Research Board of the National Acad6 emy of Sciences, on behalf of the Research and Tech7 nology Coordinating Committee of the National Re8 search Council, under which— 

9 ‘‘(A) the Transportation Research Board 

10 shall— 

11 ‘‘(i) review the research and technology 

12 planning and implementation process used 

13 by Federal Highway Administration; and 

14 ‘‘(ii) evaluate each of the strategic 

15 plans prepared under this subsection— 

16 ‘‘(I) to ensure that sufficient 

17 stakeholder input is being solicited and 

18 considered throughout the preparation 

19 process; and 

20 ‘‘(II) to offer recommendations 

21 relevant to research priorities, project 

22 selection, and deployment strategies; 

23 and 

24 ‘‘(B) the Secretary shall ensure that the Re25 search and Technology Coordinating Committee, 
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1 in a timely manner, informs the Committee on 

2 Environment and Public Works of the Senate 

3 and the Committee on Transportation and Infra4 structure of the House of Representatives of the 

5 findings of the review and evaluation under sub6 paragraph (A). 

7 ‘‘(4) RESPONSES OF SECRETARY.—Not later 

8 than 60 days after the date of completion of the stra9 tegic plan under this subsection, the Secretary shall 

10 submit to the Committee on Environment and Public 

11 Works of the Senate and the Committee on Transpor12 tation and Infrastructure of the House of Representa13 tives written responses to each of the recommenda14 tions of the Research and Technology Coordinating 

15 Committee under paragraph (3)(A)(ii)(II). 

16 ‘‘(d) CONSISTENCY WITH GOVERNMENT PERFORM17 ANCE AND RESULTS ACT OF 1993.—The plans and reports 

18 developed under this section shall be consistent with and 

19 incorporated as part of the plans developed under section 

20 306 of title 5 and sections 1115 and 1116 of title 31. 

21 ‘‘§ 509. New strategic highway research program 

22 ‘‘(a) IN GENERAL.—The National Research Council 

23 shall establish and carry out, through fiscal year 2009, a 

24 new strategic highway research program. 
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1 ‘‘(b) BASIS; PRIORITIES.—With respect to the program 

2 established under subsection (a)— 

3 ‘‘(1) the program shall be based on— 

4 ‘‘(A) National Research Council Special Re5 port No. 260, entitled ‘Strategic Highway Re6 search’; and 

7 ‘‘(B) the results of the detailed planning 

8 work subsequently carried out to scope the re9 search areas through National Cooperative Re10 search Program Project 20–58. 

11 ‘‘(2) the scope and research priorities of the pro12 gram shall— 

13 ‘‘(A) be refined through stakeholder input in 

14 the form of workshops, symposia, and panels; 

15 and 

16 ‘‘(B) include an examination of— 

17 ‘‘(i) the roles of highway infrastruc18 ture, drivers, and vehicles in fatalities on 

19 public roads; 

20 ‘‘(ii) high-risk areas and activities as21 sociated with the greatest numbers of high22 way fatalities; 

23 ‘‘(iii) the roles of various levels of gov24 ernment agencies and non-governmental or25 ganizations in reducing highway fatalities 
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1 (including recommendations for methods of 

2 strengthening highway safety partnerships); 

3 ‘‘(iv) measures that may save the 

4 greatest number of lives in the short- and 

5 long-term; 

6 ‘‘(v) renewal of aging infrastructure 

7 with minimum impact on users of facilities; 

8 ‘‘(vi) driving behavior and likely crash 

9 causal factors to support improved counter10 measures; 

11 ‘‘(vii) reduction in congestion due to 

12 nonrecurring congestion; 

13 ‘‘(viii) planning and designing of new 

14 road capacity to meet mobility, economic, 

15 environmental, and community needs; 

16 ‘‘(3) the program shall consider, at a minimum, 

17 the results of studies relating to the implementation 

18 of the Strategic Highway Safety Plan prepared by the 

19 American Association of State Highway and Trans20 portation Officials; and 

21 ‘‘(4) the research results of the program, ex22 pressed in terms of technologies, methodologies, and 

23 other appropriate categorizations, shall be dissemi24 nated to practicing engineers as soon as practicable 

25 for their use. 
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1 ‘‘(c) PROGRAM ADMINISTRATION.—In carrying out the 

2 program under this section, the National Research Council 

3 shall ensure, to the maximum extent practicable, that— 

4 ‘‘(1) the best projects and researchers are selected 

5 to conduct research for the program and priorities de6 scribed in subsection (b)— 

7 ‘‘(A) on the basis of the merit of each sub8 mitted proposal; and 

9 ‘‘(B) through the use of open solicitations 

10 and selection by a panel of appropriate experts; 

11 ‘‘(2) the National Research Council acquires a 

12 qualified, permanent core staff with the ability and 

13 expertise to manage a large research program and 

14 multiyear budget; 

15 ‘‘(3) the stakeholders are involved in the govern16 ance of the program, at the executive, overall pro17 gram, and technical levels, through the use of expert 

18 panels and committees; and 

19 ‘‘(4) there is no duplication of research effort be20 tween the program established under this section and 

21 the surface transportation-environment cooperative 

22 research program established under section 507 or 

23 any other research effort of the Department. 

24 ‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The Sec25 retary may make grants to, and enter into cooperative 
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1 agreements with, the National Academy of Sciences to carry 

2 out such activities relating to research, technology, and tech3 nology transfer described in subsections (b) and (c) as the 

4 Secretary determines to be appropriate. 

5 ‘‘(e) REPORT ON IMPLEMENTATION OF RESULTS.— 

6 ‘‘(1) IN GENERAL.—Not later than October 1, 

7 2007, the Secretary shall enter into a contract with 

8 the Transportation Research Board of the National 

9 Academy of Sciences under which the Transportation 

10 Research Board shall complete a report on the strate11 gies and administrative structure to be used for im12 plementation of the results of new strategic highway 

13 research program. 

14 ‘‘(2) COMPONENTS.—The report under para15 graph (1) shall include, with respect to the new stra16 tegic highway research program— 

17 ‘‘(A) an identification of the most prom18 ising results of research under the program (in19 cluding the persons most likely to use the re20 sults); 

21 ‘‘(B) a discussion of potential incentives for, 

22 impediments to, and methods of, implementing 

23 those results; 
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1 ‘‘(C) an estimate of costs that would be in2 curred in expediting implementation of those re3 sults; and 

4 ‘‘(D) recommendations for the way in which 

5 implementation of the results of the program 

6 under this section should be conducted, coordi7 nated, and supported in future years, including 

8 a discussion of the administrative structure and 

9 organization best suited to carry out those re10 sponsibilities. 

11 ‘‘(3) CONSULTATION.—In developing the report, 

12 the Transportation Research Board shall consult with 

13 a wide variety of stakeholders, including— 

14 ‘‘(A) the American Association of State 

15 highway Officials; 

16 ‘‘(B) the Federal Highway Administration; 

17 and 

18 ‘‘(C) the Surface Transportation Research 

19 Technology Advisory Committee. 

20 ‘‘(4) SUBMISSION.—Not later than February 1, 

21 2009, the Secretary shall submit to the Committee on 

22 Environment and Public Works of the Senate and the 

23 Committee on Transportation and Infrastructure of 

24 the House of Representatives the report under this 

25 subsection. 
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1 ‘‘§ 510. University transportation centers 

2 ‘‘(a) CENTERS.— 

3 ‘‘(1) IN GENERAL.—During fiscal year 2004, the 

4 Secretary shall provide grants to 40 nonprofit institu5 tions of higher learning (or consortia of institutions 

6 of higher learning) to establish centers to address 

7 transportation design, management, research, develop8 ment, and technology matters, especially the edu9 cation and training of greater numbers of individuals 

10 to enter into the professional field of transportation. 

11 ‘‘(2) DISTRIBUTION OF CENTERS.—Not more 

12 than 1 university transportation center (or lead uni13 versity in a consortia of institutions of higher learn14 ing), other than a center or university selected 

15 through a competitive process, may be located in any 

16 State. 

17 ‘‘(3) IDENTIFICATION OF CENTERS.—The univer18 sity transportation centers established under this sec19 tion shall— 

20 ‘‘(A) comply with applicable requirements 

21 under subsection (c); and 

22 ‘‘(B) be located at the institutions of higher 

23 learning specified in paragraph (4). 

24 ‘‘(4) IDENTIFICATION OF GROUPS.—For the pur25 pose of making grants under this subsection, the fol26 lowing grants are identified: 
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1 ‘‘(A) GROUP A.—Group A shall consist of 

2 the 10 regional centers selected under subsection 

3 (b). 

4 ‘‘(B) GROUP B.—Group B shall consist of 

5 the following: 

6 ‘‘(i) ƒlllllllll≈. 

7 ‘‘(ii) ƒlllllllll≈. 

8 ‘‘(iii) ƒlllllllll≈. 

9 ‘‘(iv) ƒlllllllll≈. 

10 ‘‘(v) ƒlllllllll≈. 

11 ‘‘(vi) ƒlllllllll≈. 

12 ‘‘(vii) ƒlllllllll≈. 

13 ‘‘(viii) ƒlllllllll≈ 

14 ‘‘(ix) ƒlllllllll≈. 

15 ‘‘(x) ƒlllllllll≈. 

16 ‘‘(xi) ƒlllllllll≈. 

17 ‘‘(C) GROUP C.—Group C shall consist of 

18 the following: 

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20 ‘‘(ii) ƒlllllllll≈. 

21 ‘‘(iii) ƒlllllllll≈. 

22 ‘‘(iv) ƒlllllllll≈. 

23 ‘‘(v) ƒlllllllll≈. 

24 ‘‘(vi) ƒlllllllll≈. 

25 ‘‘(vii) ƒlllllllll≈. 
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1 ‘‘(viii) ƒlllllllll≈. 

2 ‘‘(ix) ƒlllllllll≈. 

3 ‘‘(x) ƒlllllllll≈. 

4 ‘‘(xi) ƒlllllllll≈. 

5 ‘‘(D) GROUP D.—Group D shall consist of 

6 the following: 

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8 ‘‘(ii) ƒlllllllll≈. 

9 ‘‘(iii) ƒlllllllll≈. 

10 ‘‘(iv) ƒlllllllll≈. 

11 ‘‘(v) ƒlllllllll≈. 

12 ‘‘(vi) ƒlllllllll≈. 

13 ‘‘(vii) ƒlllllllll≈. 

14 ‘‘(viii) ƒlllllllll≈. 

15 ‘‘(b) REGIONAL CENTERS.— 

16 ‘‘(1) IN GENERAL.—Not later than September 30, 

17 2004, the Secretary shall provide to nonprofit institu18 tions of higher learning (or consortia of institutions 

19 of higher learning) grants to be used during the pe20 riod of fiscal years 2005 through 2009 to establish 

21 and operate 1 university transportation center in 

22 each of the 10 Federal regions that comprise the 

23 Standard Federal Regional Boundary System. 

24 ‘‘(2) SELECTION OF REGIONAL CENTERS.— 
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1 ‘‘(A) PROPOSALS.—In order to be eligible to 

2 receive a grant under this subsection, an institu3 tion described in paragraph (1) shall submit to 

4 the Secretary a proposal, in response to any re5 quest for proposals that shall be made by the 

6 Secretary, that is in such form and contains 

7 such information as the Secretary shall pre8 scribe. 

9 ‘‘(B) REQUEST SCHEDULE.—The Secretary 

10 shall request proposals once for the period of fis11 cal years 2004 through 2006 and once for the pe12 riod of fiscal years 2007 through 2009. 

13 ‘‘(C) ELIGIBILITY.—Any institution of 

14 higher learning (or consortium of institutions of 

15 higher learning) that meets the criteria described 

16 in subsection (c) (including any institution iden17 tified in subsection (a)(4)) may apply for a 

18 grant under this subsection. 

19 ‘‘(D) SELECTION CRITERIA.—The Secretary 

20 shall select each recipient of a grant under this 

21 subsection through a competitive process on the 

22 basis of— 

23 ‘‘(i) the location of the center within 

24 the Federal region to be served; 
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1 ‘‘(ii) the demonstrated research capa2 bilities and extension resources available to 

3 the recipient to carry out this section; 

4 ‘‘(iii) the capability of the recipient to 

5 provide leadership in making national and 

6 regional contributions to the solution of im7 mediate and long-range transportation 

8 problems; 

9 ‘‘(iv) the demonstrated ability of the 

10 recipient to disseminate results of transpor11 tation research and education programs 

12 through a statewide or regionwide con13 tinuing education program; and 

14 ‘‘(v) the strategic plan that the recipi15 ent proposes to carry out using funds from 

16 the grant. 

17 ‘‘(E) SELECTION PROCESS.—In selecting the 

18 recipients of grants under this subsection, the 

19 Secretary shall consult with, and consider the 

20 advice of— 

21 ‘‘(i) the Research and Special Pro22 grams Administration; 

23 ‘‘(ii) the Federal Highway Administra24 tion; and 
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1 ‘‘(iii) the Federal Transit Administra2 tion. 

3 ‘‘(c) CENTER REQUIREMENTS.— 

4 ‘‘(1) IN GENERAL.—With respect to a university 

5 transportation center established under subsection (a) 

6 or (b), the institution or consortium that receives a 

7 grant to establish the center— 

8 ‘‘(A) shall annually contribute at least 

9 $250,000 to the operation and maintenance of 

10 the center, except that payment by the institu11 tion or consortium of the salary required for 

12 transportation-related faculty and staff for a pe13 riod greater than 90 days may not be counted 

14 against that contribution; 

15 ‘‘(B) shall have established, as of the date of 

16 receipt of the grant, undergraduate or graduate 

17 programs in— 

18 ‘‘(i) civil engineering; 

19 ‘‘(ii) transportation engineering; 

20 ‘‘(iii) transportation systems manage21 ment and operations; or 

22 ‘‘(iv) any other field significantly re23 lated to surface transportation systems, as 

24 determined by the Secretary; and 
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1 ‘‘(C) not later than 120 days after the date 

2 on which the institution or consortium receives 

3 notice of selection as a site for the establishment 

4 of a university transportation center under this 

5 section, shall submit to the Secretary a 6-year 

6 program plan for the university transportation 

7 center that includes, with respect to the center— 

8 ‘‘(i) a description of the purposes of 

9 programs to be conducted by the center; 

10 ‘‘(ii) a description of the under11 graduate and graduate transportation edu12 cation efforts to be carried out by the center; 

13 ‘‘(iii) a description of the nature and 

14 scope of research to be conducted by the cen15 ter; 

16 ‘‘(iv) a list of personnel, including the 

17 roles and responsibilities of those personnel 

18 within the center; and 

19 ‘‘(v) a detailed budget, including the 

20 amount of contributions by the institution 

21 or consortium to the center; and 

22 ‘‘(D) shall establish an advisory committee 

23 that— 

24 ‘‘(i) is composed of a representative 

25 from each of the State transportation de-
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1 partment of the State in which the institu2 tion or consortium is located, the Depart3 ment of Transportation, and the institution 

4 or consortia, as appointed by those respec5 tive entities; 

6 ‘‘(ii) in accordance with paragraph 

7 (2), shall review and approve or disapprove 

8 the plan of the institution or consortium 

9 under subparagraph (C); and 

10 ‘‘(iii) shall, to the maximum extent 

11 practicable, ensure that the proposed re12 search to be carried out by the university 

13 transportation center will contribute to the 

14 national highway research and technology 

15 agenda, as periodically updated by the Sec16 retary, in consultation with stakeholders 

17 representing the highway community. 

18 ‘‘(2) PEER REVIEW.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall re20 quire peer review for each report on research car21 ried out using funds made available for this sec22 tion. 

23 ‘‘(B) PURPOSES OF PEER REVIEW.—Peer 

24 review of a report under this section shall be car25 ried out to evaluate— 
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1 ‘‘(i) the relevance of the research de2 scribed in the report with respect to the 

3 strategic plan under, and the goals of, this 

4 section; 

5 ‘‘(ii) the research covered by the report, 

6 and to recommend modifications to indi7 vidual project plans; 

8 ‘‘(iii) the results of the research before 

9 publication of those results; and 

10 ‘‘(iv) the overall outcomes of the re11 search. 

12 ‘‘(C) INTERNET AVAILABILITY.—Each report 

13 under this section that is received by the Sec14 retary shall be published— 

15 ‘‘(i) by the Secretary, on the Internet 

16 website of the Department of Transpor17 tation; and 

18 ‘‘(ii) by the University Transportation 

19 Center. 

20 ‘‘(3) APPROVAL OF PLANS—A plan of an institu21 tion or consortium described in paragraph (1)(C) 

22 shall not be submitted to the Secretary until such 

23 time as the advisory committee established under 

24 paragraph (1)(D) reviews and approves the plan. 
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1 ‘‘(4) FAILURE TO COMPLY.—If a recipient of a 

2 grant under this subsection fails to submit a program 

3 plan acceptable to the Secretary and in accordance 

4 with paragraph (1)(C)— 

5 ‘‘(A) the recipient shall forfeit the grant and 

6 the selection of the recipient as a site for the es7 tablishment of a university transportation cen8 ter; and 

9 ‘‘(B) the Secretary shall select a replace10 ment recipient for the forfeited grant. 

11 ‘‘(5) APPLICABILITY.—This subsection does not 

12 apply to any research funds received in accordance 

13 with a competitive contract offered and entered into 

14 by the Federal Highway Administration. 

15 ‘‘(d) OBJECTIVES.—Each university transportation 

16 center established under subsection (a) or (b) shall carry 

17 out— 

18 ‘‘(1) undergraduate or graduate education pro19 grams that include— 

20 ‘‘(A) multidisciplinary coursework; and 

21 ‘‘(B) opportunities for students to partici22 pate in research; 

23 ‘‘(2) basic and applied research, the results and 

24 products of which shall be judged by peers or other ex-
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1 perts in the field so as to advance the body of knowl2 edge in transportation; and 

3 ‘‘(3) an ongoing program of technology transfer 

4 that makes research results available to potential 

5 users in such form as will enable the results to be im6 plemented, used, or otherwise applied. 

7 ‘‘(e) MAINTENANCE OF EFFORT.—To be eligible to re8 ceive a grant under this section, an applicant shall— 

9 ‘‘(1) enter into an agreement with the Secretary 

10 to ensure that the applicant will maintain total ex11 penditures from all other sources to establish and op12 erate a university transportation center and related 

13 educational and research activities at a level that is 

14 at least equal to the average level of those expenditures 

15 during the 2 fiscal years before the date on which the 

16 grant is provided; 

17 ‘‘(2) provide the annual institutional contribu18 tion required under subsection (c)(1); and 

19 ‘‘(3) submit to the Secretary, in a timely man20 ner, for use by the Secretary in the preparation of the 

21 annual research report under section 508(c)(5) of title 

22 23, an annual report on the projects and activities of 

23 the university transportation center for which funds 

24 are made available under section 2001 of the Safe, 

25 Accountable, Flexible, and Efficient Transportation 
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1 Equity Act of 2004 that contains, at a minimum, for 

2 the fiscal year covered by the report, a description 

3 of— 

4 ‘‘(A) the goals of the center; 

5 ‘‘(B) the educational activities carried out 

6 by the center (including a detailed summary of 

7 the budget for those educational activities); 

8 ‘‘(C) teaching activities of faculty at the 

9 center; 

10 ‘‘(D) each research project carried out by 

11 the center, including— 

12 ‘‘(i) the identity and location of each 

13 investigator working on a research project; 

14 ‘‘(ii) the overall funding amount for 

15 each research project (including the 

16 amounts expended for the project as of the 

17 date of the report); 

18 ‘‘(iii) the current schedule for each re19 search project; and 

20 ‘‘(iv) the results of each research 

21 project through the date of submission of the 

22 report, with particular emphasis on results 

23 for the fiscal year covered by the report; and 

24 ‘‘(E) overall technology transfer and imple25 mentation efforts of the center. 
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1 ‘‘(f) PROGRAM COORDINATION.—The Secretary shall— 

2 ‘‘(1) coordinate the research, education, training, 

3 and technology transfer activities carried out by re4 cipients of grants under this section; and 

5 ‘‘(2) establish and operate a clearinghouse for, 

6 and disseminate, the results of those activities. 

7 ‘‘(g) FUNDING.— 

8 ‘‘(1) NUMBER AND AMOUNT OF GRANTS.—The 

9 Secretary shall make the following grants under this 

10 subsection: 

11 ‘‘(A) GROUP A.—For each of fiscal years 

12 2004 through 2009, the Secretary shall make a 

13 grant in the amount of $20,000,000 to each of 

14 the institutions in group A (as described in sub15 section (a)(4)(A)). 

16 ‘‘(B) GROUP B.—The Secretary shall make 

17 a grant to each of the institutions in group B (as 

18 described in subsection (a)(4)(B)) in the amount 

19 of— 

20 ‘‘(i) $4,000,000 for each of fiscal years 

21 2004 and 2005; and 

22 ‘‘(ii) $6,000,000 for each of fiscal years 

23 2006 and 2007. 

24 ‘‘(C) GROUP C.—For each of fiscal years 

25 2004 through 2007, the Secretary shall make a 
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1 grant in the amount of $10,000,000 to each of 

2 the institutions in group C (as described in sub3 section (a)(4)(C)). 

4 ‘‘(D) GROUP D.—For each of fiscal years 

5 2004 through 2009, the Secretary shall make a 

6 grant in the amount of $25,000,000 to each of 

7 the institutions in group D (as described in sub8 section (a)(4)(D)). 

9 ‘‘(E) LIMITED GRANTS FOR GROUPS B AND

10 C.—For each of fiscal years 2008 and 2009, of 

11 the institutions classified in groups B and C (as 

12 described in subsection (a)(4)(B)), the Secretary 

13 shall select and make a grant in the amount of 

14 $10,000,000 to each of not more than 15 institu15 tions. 

16 ‘‘(2) USE OF FUNDS— 

17 ‘‘(A) IN GENERAL.—Of the funds made 

18 available for a fiscal year to a university trans19 portation center established under subsection (a) 

20 or (b)— 

21 ‘‘(i) not less than $250,000 shall be 

22 used to establish and maintain new faculty 

23 positions for the teaching of undergraduate, 

24 transportation-related courses; 
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1 ‘‘(ii) not more than $500,000 for the 

2 fiscal year, or $1,000,000 in the aggregate, 

3 may be used to construct or improve trans4 portation-related laboratory facilities; and 

5 ‘‘(iii) not more than $300,000 for the 

6 fiscal year may be used for student intern7 ships of not more than 180 days in dura8 tion to enable students to gain experience by 

9 working on transportation projects as in10 terns with design or construction firms. 

11 ‘‘(B) FACILITIES AND ADMINISTRATION

12 FEE.—Not more than 10 percent of any grant 

13 made available to a university transportation 

14 center (or any institution or consortium that es15 tablishes such a center) for a fiscal year may be 

16 used to pay to the appropriate nonprofit institu17 tion of higher learning any administration and 

18 facilities fee (or any similar overhead fee) for the 

19 fiscal year. 

20 ‘‘(3) LIMITATION ON AVAILABILITY OF FUNDS.— 

21 Funds made available under this subsection shall re22 main available for obligation for a period of 2 years 

23 after September 30 of the fiscal year for which the 

24 funds are authorized. 
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1 ‘‘§ 511. Multistate corridor operations and manage2 ment 

3 ‘‘(a) IN GENERAL.—The Secretary shall encourage 

4 multistate cooperative agreements, coalitions, or other ar5 rangements to promote regional cooperation, planning, and 

6 shared project implementation for programs and projects 

7 to improve transportation system management and oper8 ations. 

9 ‘‘(b) INTERSTATE ROUTE I–95 CORRIDOR COALITION

10 TRANSPORTATION SYSTEMS MANAGEMENT AND OPER11 ATIONS.— 

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

13 grants under this subsection to States to continue in14 telligent transportation system management and op15 erations in the Interstate Route I–95 corridor coali16 tion region initiated under the Intermodal Surface 

17 Transportation Efficiency Act of 1991 (Public Law 

18 102–240). 

19 ‘‘(2) FUNDING.—Of the amounts made available 

20 under section 2001(a)(4) of the Safe, Accountable, 

21 Flexible, and Efficient Transportation Equity Act of 

22 2004, the Secretary shall use to carry out this sub23 section— 

24 ‘‘(A) $8,000,000 for fiscal year 2004; 

25 ‘‘(B) $10,000,000 for fiscal year 2005; 

26 ‘‘(C) $12,000,000 for fiscal year 2006; 
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1 ‘‘(D) $12,000,000 for fiscal year 2007; 

2 ‘‘(E) $12,000,000 for fiscal year 2008; and 

3 ‘‘(F) $12,000,000 for fiscal year 2009. 

4 ‘‘§ 512. Transportation analysis simulation system 

5 ‘‘(a) CONTINUATION OF TRANSIMS DEVELOPMENT.— 

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

7 the deployment of the advanced transportation model 

8 known as the ‘Transportation Analysis Simulation 

9 System’ (referred to in this section as ‘TRANSIMS’) 

10 developed by the Los Alamos National Laboratory. 

11 ‘‘(2) REQUIREMENTS AND CONSIDERATIONS.—In 

12 carrying out paragraph (1), the Secretary shall— 

13 ‘‘(A) further improve TRANSIMS to reduce 

14 the cost and complexity of using the 

15 TRANSIMS; 

16 ‘‘(B) continue development of TRANSIMS 

17 for applications to facilitate transportation 

18 planning, regulatory compliance, and response to 

19 natural disasters and other transportation dis20 ruptions; and 

21 ‘‘(C) assist State transportation depart22 ments and metropolitan planning organizations, 

23 especially smaller metropolitan planning organi24 zations, in the implementation of TRANSIMS 

25 by providing training and technical assistance. 
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1 ‘‘(b) ELIGIBLE ACTIVITIES.—The Secretary shall use 

2 funds made available to carry out this section— 

3 ‘‘(1) to further develop TRANSIMS for addi4 tional applications, including— 

5 ‘‘(A) congestion analyses; 

6 ‘‘(B) major investment studies; 

7 ‘‘(C) economic impact analyses; 

8 ‘‘(D) alternative analyses; 

9 ‘‘(E) freight movement studies; 

10 ‘‘(F) emergency evacuation studies; 

11 ‘‘(G) port studies; and 

12 ‘‘(H) airport access studies; 

13 ‘‘(2) provide training and technical assistance 

14 with respect to the implementation and application of 

15 TRANSIMS to States, local governments, and metro16 politan planning organizations with responsibility for 

17 travel modeling; 

18 ‘‘(3) develop methods to simulate the national 

19 transportation infrastructure as a single, integrated 

20 system for the movement of individuals and goods; 

21 ‘‘(4) provide funding to State transportation de22 partments and metropolitan planning organizations 

23 for implementation of TRANSIMS. 

24 ‘‘(c) ALLOCATION OF FUNDS.—Of the funds made 

25 available to carry out this section for each fiscal year, not 
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1 less than 15 percent shall be allocated for activities de2 scribed in subsection (b)(3). 

3 ‘‘(d) FUNDING.—Of the amounts made available under 

4 section 2001(a) of the Safe, Accountable, Flexible, and Effi5 cient Transportation Equity Act of 2004 for each of fiscal 

6 years 2004 through 2009, the Secretary shall use $1,000,000 

7 to carry out this section. 

8 ‘‘(e) AVAILABILITY OF FUNDS.—Funds made available 

9 under this section shall be available to the Secretary 

10 through the Transportation Planning, Research, and Devel11 opment Account of the Office of the Secretary.’’. 

12 (b) OTHER UNIVERSITY FUNDING.—No university 

13 (other than university transportation centers specified in 

14 section 510 of title 23, United States Code (as added by 

15 subsection (a)) shall receive funds made available under sec16 tion 2001 to carry out research unless the university is se17 lected to receive the funds— 

18 (1) through a competitive process that incor19 porates merit-based peer review; and 

20 (2) based on a proposal submitted to the Sec21 retary by the university in response to a request for 

22 proposals issued by the Secretary. 

23 (c) CONFORMING AMENDMENT.—Section 5505 of title 

24 49, United States Code, is repealed. 
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1 SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL 

2 ANALYSIS EFFORTS. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ADMINISTRATION.—The term ‘‘Administra5 tion’’ means the Federal Highway Administration. 

6 (2) BOARD.—The term ‘‘Board’’ means the 

7 Transportation Research Board of the National Acad8 emy of Sciences. 

9 (3) BUREAU.—The term ‘‘Bureau’’ means the 

10 Bureau of Transportation Statistics. 

11 (4) DEPARTMENT.—The term ‘‘Department’’ 

12 means the Department of Transportation. 

13 (5) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Transportation. 

15 (b) PRIORITY AREAS OF EFFORT.— 

16 (1) STATISTICAL STANDARDS.—The Secretary 

17 shall direct the Bureau to assume the role of the lead 

18 agency in working with other agencies of the Depart19 ment to establish, by not later the date that is 1 year 

20 after the date of enactment of this Act, statistical 

21 standards for the Department. 

22 (2) STATISTICAL ANALYSIS EFFORT.— 

23 (A) IN GENERAL.—The Bureau shall pro24 vide to the Secretary, on an annual basis, an 

25 overview of the level of effort expended on statis-
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1 tical analyses by each agency within the Depart2 ment. 

3 (B) DUTY OF AGENCIES.—Each agency of 

4 the Department shall provide to the Bureau such 

5 information as the Bureau may require in car6 rying out subparagraph (A). 

7 (3) NATIONAL SECURITY.—The Bureau shall— 

8 (A) conduct a study of the ways in which 

9 transportation statistics are and may be used for 

10 the purpose of national security; and 

11 (B) submit to the Transportation Security 

12 Administration recommendations for means by 

13 which the use of transportation statistics for the 

14 purpose of national security may be improved. 

15 (4) MODERNIZATION.—The Bureau shall develop 

16 new protocols for adapting data collection and deliv17 ery efforts in existence as of the date of enactment of 

18 this Act to deliver information in a more timely and 

19 frequent fashion. 

20 (c) STUDY.— 

21 (1) IN GENERAL.—Not later than 90 days after 

22 the date of enactment of this Act, the Secretary shall 

23 provide a grant to, or enter into a cooperative agree24 ment or contract with, the Board for the conduct of 

25 a study of the data collection and statistical analysis 
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1 efforts of the Department with respect to the modes of 

2 surface transportation for which funds are made 

3 available under this Act. 

4 (2) PURPOSE.—The purpose of the study shall be 

5 to provide to the Department information for use by 

6 agencies of the Department in providing to surface 

7 transportation agencies and individuals engaged in 

8 the surface transportation field higher quality, and 

9 more relevant and timely, data, statistical analyses, 

10 and products. 

11 (3) CONTENT.—The study shall include— 

12 (A) an examination and analysis of the ef13 forts, analyses, and products (with respect to 

14 usefulness and policy relevance) of the Bureau as 

15 of the date of the study, as compared with the 

16 duties of the Bureau specified in subsections (c) 

17 through (f) of section 111 of title 49, United 

18 States Code; 

19 (B) an examination and analysis of data 

20 collected by, methods of data collection of, and 

21 analyses performed by, agencies within the De22 partment; and 

23 (C) recommendations relating to— 
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1 (i) the future efforts of the Department 

2 in the area of surface transportation with 

3 respect to— 

4 (I) types of data collected; 

5 (II) methods of data collection; 

6 (III) types of analyses performed; 

7 and 

8 (IV) products made available by 

9 the Secretary to the transportation 

10 community and Congress; 

11 (ii) the means by which the Depart12 ment may cooperate with State transpor13 tation departments to provide technical as14 sistance in the use of data collected by traf15 fic operations centers; and 

16 (iii) duplication of efforts within the 

17 Department, including ways in which— 

18 (I) the duplication may be re19 duced or eliminated; and 

20 (II) each agency of the Depart21 ment may cooperate with, and com22 plement the efforts of, the others. 

23 (4) CONSULTATION.—In conducting the study, 

24 the Board shall consult with such stakeholders, agen-
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1 cies, and other entities as the Board considers to be 

2 appropriate. 

3 (5) REPORT.—Not later than 1 year after the 

4 date on which a grant is provided, or a cooperative 

5 agreement or contract is entered into, for a study 

6 under paragraph (1)— 

7 (A) the Board shall submit to the Secretary, 

8 the Committee on Environment and Public 

9 Works of the Senate, and the Committee on 

10 Transportation and Infrastructure of the House 

11 of Representatives a final report on the results of 

12 the study; and 

13 (B) the results of the study shall be pub14 lished— 

15 (i) by the Secretary, on the Internet 

16 website of the Department; and 

17 (ii) by the Board, on the Internet 

18 website of the Board. 

19 (6) IMPLEMENTATION OF RESULTS.—The Bureau 

20 shall, to the maximum extent practicable, implement 

21 any recommendations made with respect to the results 

22 of the study under this subsection. 

23 (7) COMPLIANCE.— 
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1 (A) IN GENERAL.—The Comptroller General 

2 of the United States shall conduct a review of the 

3 study under this subsection. 

4 (B) NONCOMPLIANCE.—If the Comptroller 

5 General of the United States determines that the 

6 Bureau failed to conduct the study under this 

7 subsection, the Bureau shall be ineligible to re8 ceive funds from the Highway Trust Fund until 

9 such time as the Bureau conducts the study 

10 under this subsection. 

11 (d) CONFORMING AMENDMENTS.— 

12 (1) Section 111 of title 49, United States Code, 

13 is amended— 

14 (A) by redesignating subsection (k) as sub15 section (m); 

16 (B) by inserting after subsection (j) the fol17 lowing: 

18 ‘‘(k) ANNUAL REPORT.— 

19 ‘‘(1) IN GENERAL.—For fiscal year 2005 and 

20 each fiscal year thereafter, the Bureau shall prepare 

21 and submit to the Secretary an annual report that— 

22 ‘‘(A) describes progress made in responding 

23 to study recommendations for the fiscal year; 

24 and 
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1 ‘‘(B) summarizes the activities and expendi2 ture of funds by the Bureau for the fiscal year. 

3 ‘‘(2) AVAILABILITY.—The Bureau shall— 

4 ‘‘(A) make the report described in para5 graph (1) available to the public; and 

6 ‘‘(B) publish the report on the Internet 

7 website of the Bureau. 

8 ‘‘(3) COMBINATION OF REPORTS.—The report re9 quired under paragraph (1) may be included in or 

10 combined with the Transportation Statistics Annual 

11 Report required by subsection (j). 

12 ‘‘(l) EXPENDITURE OF FUNDS.—Funds from the High13 way Trust Fund (other than the Mass Transit Account) 

14 that are authorized to be appropriated, and made available, 

15 in accordance with section 2001(a)(3) of the Safe, Account16 able, Flexible, and Efficient Transportation Equity Act of 

17 2004 shall be used only for the collection and statistical 

18 analysis of information relating to surface transportation 

19 systems.’’; and 

20 (C) in subsection (m) (as redesignated by 

21 subparagraph (A)), by inserting ‘‘surface trans22 portation’’ after ‘‘sale of’’. 

23 (2) The analysis for chapter 55 of title 49, 

24 United States Code, is amended by striking the item 

25 relating to section 5505 and inserting the following: 

‘‘5505. University transportation centers.’’. 
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1 SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EX2 CELLENCE. 

3 (a) ESTABLISHMENT.—The Secretary shall establish 

4 the centers for surface transportation excellence described in 

5 subsection (b) to promote high-quality outcomes in support 

6 of strategic national programs and activities, including— 

7 (1) the environment; 

8 (2) operations; 

9 (3) surface transportation safety; 

10 (4) project finance; and 

11 (5) asset management. 

12 (b) CENTERS.—The centers for surface transportation 

13 excellence referred to in subsection (a) are— 

14 (1) a Center for Environmental Excellence to 

15 provide technical assistance, information sharing of 

16 best practices, and training in the use of tools and de17 cision-making processes to assist States in planning 

18 and delivering environmentally-sound surface trans19 portation projects; 

20 (2) a Center for Operations Excellence to provide 

21 support for an integrated and coordinated national 

22 program for implementing operations in planning 

23 and management (including standards development) 

24 for the transportation system in the United States; 
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1 (3) a Center for Excellence in Surface Transpor2 tation Safety to implement a program of support for 

3 State transportation departments, including— 

4 (A) the maintenance of an Internet site to 

5 provide critical information on safety programs; 

6 (B) the provision of technical assistance to 

7 support a lead State transportation department 

8 for each of the safety emphasis areas (as identi9 fied by the Secretary); and 

10 (C) the provision of training and education 

11 to enhance knowledge of personnel of State trans12 portation departments in support of safety high13 way goals; 

14 (4) a Center for Excellence in Project Finance— 

15 (A) to provide support to State transpor16 tation departments in the development of finance 

17 plans and project oversight tools; and 

18 (B) to develop and offer training in state19 of-the-art financing methods to advance projects 

20 and leverage funds; and 

21 (5) a Center for Excellence in Asset Management 

22 to develop and conduct research, provide training and 

23 education, and disseminate information on the bene24 fits and tools for asset management. 

25 (c) PROGRAM ADMINISTRATION.— 
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1 (1) IN GENERAL.—Before funds authorized under 

2 this section for fiscal years 2005 through 2009 are ob3 ligated, the Secretary shall review and approve a 

4 multiyear strategic plan to be submitted by each of 

5 the centers. 

6 (2) TIMING.—The plan shall be submitted before 

7 the beginning of fiscal year 2005 and, subsequently, 

8 shall be annually updated. 

9 (3) CONTENT.—The plan shall include— 

10 (A) a list of research and technical assist11 ance projects and objectives; and 

12 (B) a description of any other technology 

13 transfer activities, including a summary of 

14 training efforts. 

15 (4) COOPERATION AND COMPETITION.— 

16 (A) IN GENERAL.—The Secretary shall 

17 carry out this section by making grants to, or 

18 entering into contracts, cooperative agreements, 

19 and other transactions with— 

20 (i) the National Academy of Sciences; 

21 (ii) the American Association of State 

22 Highway and Transportation Officials; 

23 (iii) planning organizations; 

24 (iv) a Federal laboratory; 

25 (v) a State agency; 
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1 (vi) an authority, association, institu2 tion, or organization; or 

3 (vii) a for-profit or nonprofit corpora4 tion. 

5 (B) COMPETITION; REVIEW.—All parties en6 tering into contracts, cooperative agreements, or 

7 other transactions with the Secretary, or receiv8 ing grants, to perform research or provide tech9 nical assistance under this section shall be se10 lected, to the maximum extent practicable— 

11 (i) on a competitive basis; and 

12 (ii) on the basis of the results of peer 

13 review of proposals submitted to the Sec14 retary. 

15 (5) NONDUPLICATION.—The Secretary shall en16 sure that activities conducted by each of the centers 

17 do not duplicate, and to the maximum extent prac18 ticable, are integrated and coordinated with similar 

19 activities conducted by the Federal Highway Admin20 istration, the local technical assistance program, uni21 versity transportation centers, and other research ef22 forts supported with funds authorized by this title. 

23 (d) ALLOCATIONS.— 

24 (1) IN GENERAL.—For each of fiscal years 2004 

25 through 2009, of the funds made available under sec-
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1 tion 2001(a)(1)(A), the Secretary shall set aside 

2 $10,000,000 to carry out this section. 

3 (2) ALLOCATION OF FUNDS.—Of the funds made 

4 available under paragraph (1)— 

5 (A) 20 percent shall be allocated to the Cen6 ter for Environmental Excellence established 

7 under subsection (b)(1); 

8 (B) 30 percent shall be allocated to the Cen9 ter for Operations Excellence established under 

10 subsection (b)(2); 

11 (C) 20 percent shall be allocated to the Cen12 ter for Excellence in Surface Transportation 

13 Safety established under subsection (b)(3); 

14 (D) 10 percent shall be allocated to the Cen15 ter for Excellence in Project Finance established 

16 under subsection (b)(4); and 

17 (E) 20 percent shall be allocated to the Cen18 ter for Excellence in Asset Management estab19 lished under subsection (b)(5). 

20 (3) APPLICABILITY OF TITLE 23.—Funds made 

21 available under this section shall be available for obli22 gation in the same manner as if the funds were ap23 portioned under chapter 1 of title 23, United States 

24 Code, except that the Federal share shall be 100 per25 cent. 
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1 SEC. 2104. MOTORCYCLE CRASH CAUSATION STUDY 

2 GRANTS. 

3 (a) GRANTS.—The Secretary shall provide grants for 

4 the purpose of conducting a comprehensive, in-depth motor5 cycle crash causation study that employs the common inter6 national methodology for in-depth motorcycle accident in7 vestigation of the Organization for Economic Cooperation 

8 and Development. 

9 (b) FUNDING.—Of the amounts made available under 

10 section 2001(a)(3), $1,500,000 for each of fiscal years 2004 

11 and 2005 shall be available to carry out this section. 

12 SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION 

13 AND DEMONSTRATION PROGRAM. 

14 (a) IN GENERAL.—Section 5117(b)(3) of the Transpor15 tation Equity Act for the 21st Century (112 Stat. 449; 112 

16 Stat. 864; 115 Stat. 2330) is amended— 

17 (1) in subparagraph (B)— 

18 (A) in clause (i)— 

19 (i) in the first sentence— 

20 (I) by striking ‘‘Build an’’ and 

21 inserting ‘‘Build or integrate an’’; and 

22 (II) by striking ‘‘$2,000,000’’ and 

23 inserting ‘‘$2,500,000’’; and 

24 (ii) in the second sentence— 

25 (I) by striking ‘‘300,000 and 

26 that’’ and inserting ‘‘300,000,’’; and 
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1 (II) by inserting before the period 

2 at the end the following: ‘‘, and in3 cludes major transportation corridors 

4 serving that metropolitan area’’; 

5 (B) in clause (ii), by striking all that fol6 lows ‘‘will be’’ and inserting ‘‘reinvested in the 

7 intelligent transportation infrastructure sys8 tem.’’; 

9 (C) by striking clause (iii); and 

10 (D) by redesignating clauses (iv) and (v) as 

11 clauses (iii) and (iv), respectively; 

12 (2) in subparagraph (C)(ii), by striking ‘‘July 1, 

13 2002’’ and inserting ‘‘the date that is 180 days after 

14 the date of enactment of the Safe, Accountable, Flexi15 ble, and Efficient Transportation Equity Act of 

16 2003’’; 

17 (3) in subparagraph (E), by striking clause (ii) 

18 and inserting the following: 

19 ‘‘(ii) The term ‘‘follow-on deployment 

20 areas’’ means the metropolitan areas of Al21 bany, Atlanta, Austin, Baltimore, Bir22 mingham, Boston, Burlington Vermont, 

23 Charlotte, Chicago, Cleveland, Columbus, 

24 Dallas/Ft. Worth, Denver, Detroit, Greens25 boro, Hartford, Houston, Indianapolis, 
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1 Jacksonville, Kansas City, Las Vegas, Los 

2 Angeles, Louisville, Miami, Milwaukee, 

3 Minneapolis-St. Paul, Nashville, New Orle4 ans, New York/Northern New Jersey, Nor5 folk, Northern Kentucky/Cincinnati, Okla6 homa City, Orlando, Philadelphia, Phoenix, 

7 Pittsburgh, Portland, Providence, Raleigh, 

8 Richmond, Sacramento, Salt Lake, San 

9 Diego, San Francisco, San Jose, St. Louis, 

10 Seattle, Tampa, Tucson, Tulsa, and Wash11 ington, District of Columbia.’’; 

12 (4) in subparagraph (F)— 

13 (A) by striking ‘‘Of the amounts’’ and in14 serting the following: 

15 ‘‘(i) THIS ACT.—Of the amounts’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(ii) SAFETEA.—There are author18 ized to be appropriated out of the Highway 

19 Trust Fund (other than the Mass Transit 

20 Account) $5,000,000 for each fiscal year to 

21 carry out this paragraph. 

22 ‘‘(iii) AVAILABILITY; NO REDUCTION

23 OR SETASIDE.—Amounts made available by 

24 this subparagraph— 
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1 ‘‘(I) shall remain available until 

2 expended; and 

3 ‘‘(II) shall not be subject to any 

4 reduction or setaside.’’; and 

5 (5) by adding at the end the following: 

6 ‘‘(H) USE OF RIGHTS-OF-WAY.— 

7 ‘‘(i) IN GENERAL.—An intelligent 

8 transportation system project described in 

9 paragraph (3) or (6) that involves privately 

10 owned intelligent transportation system 

11 components and is carried out using funds 

12 made available from the Highway Trust 

13 Fund shall not be subject to any law (in14 cluding a regulation) of a State or political 

15 subdivision of a State prohibiting or regu16 lating commercial activities in the rights-of17 way of a highway for which Federal-aid 

18 highway funds have been used for planning, 

19 design, construction, or maintenance, if the 

20 Secretary determines that such use is in the 

21 public interest. 

22 ‘‘(ii) EFFECT OF SUBPARAGRAPH.— 

23 Nothing in this subparagraph affects the 

24 authority of a State or political subdivision 

25 of a State to regulate highway safety.’’. 
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1 (b) CONFORMING AMENDMENT.—Section 5204 of the 

2 Transportation Equity Act for the 21st Century (112 Stat. 

3 453) is amended by striking subsection (k) (112 Stat. 2681– 

4 478). 

5 Subtitle C—Intelligent 

6 Transportation System Research 

7 SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RE8 SEARCH AND TECHNICAL ASSISTANCE PRO9 GRAM. 

10 (a) IN GENERAL.—Chapter 5 of title 23, United States 

11 Code (as amended by section 2101), is amended by adding 

12 at the end the following: 

13 ‘‘SUBCHAPTER II—INTELLIGENT TRANSPOR14 TATION SYSTEM RESEARCH AND TECHNICAL 

15 ASSISTANCE PROGRAM 

16 ‘‘§ 521. Finding 

17 ‘‘Congress finds that continued investment in architec18 ture and standards development, research, technical assist19 ance for State and local governments, and systems integra20 tion is needed to accelerate the rate at which intelligent 

21 transportation systems— 

22 ‘‘(1) are incorporated into the national surface 

23 transportation network; and 

24 ‘‘(2) as a result of that incorporation, improve 

25 transportation safety and efficiency and reduce costs 
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1 and negative impacts on communities and the envi2 ronment. 

3 ‘‘§ 522. Goals and purposes 

4 ‘‘(a) GOALS.—The goals of the intelligent transpor5 tation system research and technical assistance program in6 clude— 

7 ‘‘(1) enhancement of surface transportation effi8 ciency and facilitation of intermodalism and inter9 national trade— 

10 ‘‘(A) to meet a significant portion of future 

11 transportation needs, including public access to 

12 employment, goods, and services; and 

13 ‘‘(B) to reduce regulatory, financial, and 

14 other transaction costs to public agencies and 

15 system users; 

16 ‘‘(2) the acceleration of the use of intelligent 

17 transportation systems to assist in the achievement of 

18 national transportation safety goals, including the en19 hancement of safe operation of motor vehicles and 

20 nonmotorized vehicles, with particular emphasis on 

21 decreasing the number and severity of collisions; 

22 ‘‘(3) protection and enhancement of the natural 

23 environment and communities affected by surface 

24 transportation, with particular emphasis on assisting 
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1 State and local governments in achieving national en2 vironmental goals; 

3 ‘‘(4) accommodation of the needs of all users of 

4 surface transportation systems, including— 

5 ‘‘(A) operators of commercial vehicles, pas6 senger vehicles, and motorcycles; 

7 ‘‘(B) users of public transportation users 

8 (with respect to intelligent transportation system 

9 user services); and 

10 ‘‘(C) individuals with disabilities; and 

11 ‘‘(5)(A) improvement of the ability of the United 

12 States to respond to emergencies and natural disas13 ters; and 

14 ‘‘(B) enhancement of national security and de15 fense mobility. 

16 ‘‘(b) PURPOSES.—The Secretary shall carry out activi17 ties under the intelligent transportation system research 

18 and technical assistance program to, at a minimum— 

19 ‘‘(1) assist in the development of intelligent 

20 transportation system technologies; 

21 ‘‘(2) ensure that Federal, State, and local trans22 portation officials have adequate knowledge of intel23 ligent transportation systems for full consideration in 

24 the transportation planning process; 
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1 ‘‘(3) improve regional cooperation, interoper2 ability, and operations for effective intelligent trans3 portation system performance; 

4 ‘‘(4) promote the innovative use of private re5 sources; 

6 ‘‘(5) assist State transportation departments in 

7 developing a workforce capable of developing, oper8 ating, and maintaining intelligent transportation 

9 systems; 

10 ‘‘(6) maintain an updated national ITS archi11 tecture and consensus-based standards while ensuring 

12 an effective Federal presence in the formulation of do13 mestic and international ITS standards; 

14 ‘‘(7) advance commercial vehicle operations com15 ponents of intelligent transportation systems— 

16 ‘‘(A) to improve the safety and productivity 

17 of commercial vehicles and drivers; and 

18 ‘‘(B) to reduce costs associated with com19 mercial vehicle operations and Federal and State 

20 commercial vehicle regulatory requirements; 

21 ‘‘(8) evaluate costs and benefits of intelligent 

22 transportation systems projects; 

23 ‘‘(9) improve, as part of the Archived Data User 

24 Service and in cooperation with the Bureau of Trans25 portation Statistics, the collection of surface transpor-
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1 tation system condition and performance data 

2 through the use of intelligent transportation system 

3 technologies; and 

4 ‘‘(10) ensure access to transportation informa5 tion and services by travelers of all ages. 

6 ‘‘§ 523. Definitions 

7 ‘‘In this subchapter: 

8 ‘‘(1) COMMERCIAL VEHICLE INFORMATION SYS9 TEMS AND NETWORKS.—The term ‘commercial vehicle 

10 information systems and networks’ means the infor11 mation systems and communications networks that 

12 support commercial vehicle operations. 

13 ‘‘(2) COMMERCIAL VEHICLE OPERATIONS.— 

14 ‘‘(A) IN GENERAL.—The term ‘commercial 

15 vehicle operations’ means motor carrier oper16 ations and motor vehicle regulatory activities as17 sociated with the commercial movement of goods 

18 (including hazardous materials) and passengers. 

19 ‘‘(B) INCLUSIONS.—The term ‘commercial 

20 vehicle operations’, with respect to the public sec21 tor, includes— 

22 ‘‘(i) the issuance of operating creden23 tials; 

24 ‘‘(ii) the administration of motor vehi25 cle and fuel taxes; and 
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1 ‘‘(iii) roadside safety and border cross2 ing inspection and regulatory compliance 

3 operations. 

4 ‘‘(3) INTELLIGENT TRANSPORTATION INFRA5 STRUCTURE.—The term ‘intelligent transportation in6 frastructure’ means fully integrated public sector in7 telligent transportation system components, as defined 

8 by the Secretary. 

9 ‘‘(4) INTELLIGENT TRANSPORTATION SYSTEM.— 

10 The term ‘intelligent transportation system’ means 

11 electronics, communications, or information proc12 essing used singly or in combination to improve the 

13 efficiency or safety of a surface transportation system. 

14 ‘‘(5) NATIONAL ITS ARCHITECTURE.—The term 

15 ‘national ITS architecture’ means the common frame16 work for interoperability adopted by the Secretary 

17 that defines— 

18 ‘‘(A) the functions associated with intel19 ligent transportation system user services; 

20 ‘‘(B) the physical entities or subsystems 

21 within which the functions reside; 

22 ‘‘(C) the data interfaces and information 

23 flows between physical subsystems; and 

24 ‘‘(D) the communications requirements as25 sociated with the information flows. 
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1 ‘‘(6) STANDARD.—The term ‘standard’ means a 

2 document that— 

3 ‘‘(A) contains technical specifications or 

4 other precise criteria for intelligent transpor5 tation systems that are to be used consistently as 

6 rules, guidelines, or definitions of characteristics 

7 so as to ensure that materials, products, proc8 esses, and services are fit for their purposes; and 

9 ‘‘(B) may— 

10 ‘‘(i) support the national ITS architec11 ture; and 

12 ‘‘(ii) promote— 

13 ‘‘(I) the widespread use and adop14 tion of intelligent transportation sys15 tem technology as a component of the 

16 surface transportation systems of the 

17 United States; and 

18 ‘‘(II) interoperability among in19 telligent transportation system tech20 nologies implemented throughout the 

21 States. 

22 ‘‘§ 524. General authorities and requirements 

23 ‘‘(a) SCOPE.—Subject to this subchapter, the Secretary 

24 shall carry out an ongoing intelligent transportation system 

25 research program— 
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1 ‘‘(1) to research, develop, and operationally test 

2 intelligent transportation systems; and 

3 ‘‘(2) to provide technical assistance in the na4 tionwide application of those systems as a component 

5 of the surface transportation systems of the United 

6 States. 

7 ‘‘(b) POLICY.—Intelligent transportation system oper8 ational tests and projects funded under this subchapter shall 

9 encourage, but not displace, public-private partnerships or 

10 private sector investment in those tests and projects. 

11 ‘‘(c) COOPERATION WITH GOVERNMENTAL, PRIVATE, 

12 AND EDUCATIONAL ENTITIES.—The Secretary shall carry 

13 out the intelligent transportation system research and tech14 nical assistance program in cooperation with— 

15 ‘‘(1) State and local governments and other pub16 lic entities; 

17 ‘‘(2) the private sector; 

18 ‘‘(3) Federal laboratories (as defined in section 

19 501); and 

20 ‘‘(4) colleges and universities, including histori21 cally black colleges and universities and other minor22 ity institutions of higher education. 

23 ‘‘(d) CONSULTATION WITH FEDERAL OFFICIALS.—In 

24 carrying out the intelligent transportation system research 
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1 program, the Secretary, as appropriate, shall consult 

2 with— 

3 ‘‘(1) the Secretary of Commerce; 

4 ‘‘(2) the Secretary of the Treasury; 

5 ‘‘(3) the Administrator of the Environmental 

6 Protection Agency; 

7 ‘‘(4) the Director of the National Science Foun8 dation; and 

9 ‘‘(5) the Secretary of Homeland Security. 

10 ‘‘(e) TECHNICAL ASSISTANCE, TRAINING, AND INFOR11 MATION.—The Secretary may provide technical assistance, 

12 training, and information to State and local governments 

13 seeking to implement, operate, maintain, or evaluate intel14 ligent transportation system technologies and services. 

15 ‘‘(f) TRANSPORTATION PLANNING.—The Secretary 

16 may provide funding to support adequate consideration of 

17 transportation system management and operations (includ18 ing intelligent transportation systems) within metropolitan 

19 and statewide transportation planning processes. 

20 ‘‘(g) INFORMATION CLEARINGHOUSE.—The Secretary 

21 shall— 

22 ‘‘(1) maintain a repository for technical and 

23 safety data collected as a result of federally sponsored 

24 projects carried out under this subchapter; and 
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1 ‘‘(2) on request, make that information (except 

2 for proprietary information and data) readily avail3 able to all users of the repository at an appropriate 

4 cost. 

5 ‘‘(h) ADVISORY COMMITTEES.— 

6 ‘‘(1) IN GENERAL.—In carrying out this sub7 chapter, the Secretary— 

8 ‘‘(A) may use 1 or more advisory commit9 tees; and 

10 ‘‘(B) shall designate a public-private orga11 nization, the members of which participate in 

12 on-going research, planning, standards develop13 ment, deployment, and marketing of ITS pro14 grams, products, and services, and coordinate the 

15 development and deployment of intelligent trans16 portation systems in the United States, as the 

17 Federal advisory committee authorized by section 

18 5204(h) of the Transportation Equity Act for the 

19 21st Century (112 Stat. 454). 

20 ‘‘(2) FUNDING.—Of the amount made available 

21 to carry out this subchapter, the Secretary may use 

22 $1,500,000 for each fiscal year for advisory commit23 tees described in paragraph (1). 

24 ‘‘(3) APPLICABILITY OF FEDERAL ADVISORY COM25 MITTEE ACT.—Any advisory committee described in 
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1 paragraph (1) shall be subject to the Federal Advisory 

2 Committee Act (5 U.S.C. App.). 

3 ‘‘(i) PROCUREMENT METHODS.—The Secretary shall 

4 develop and provide appropriate technical assistance and 

5 guidance to assist State and local agencies in evaluating 

6 and selecting appropriate methods of deployment and pro7 curement for intelligent transportation system projects car8 ried out using funds made available from the Highway 

9 Trust Fund, including innovative and nontraditional meth10 ods such as Information Technology Omnibus Procurement 

11 (as developed by the Secretary). 

12 ‘‘(j) EVALUATIONS.— 

13 ‘‘(1) GUIDELINES AND REQUIREMENTS.— 

14 ‘‘(A) IN GENERAL.—The Secretary shall 

15 issue revised guidelines and requirements for the 

16 evaluation of operational tests and other intel17 ligent transportation system projects carried out 

18 under this subchapter. 

19 ‘‘(B) OBJECTIVITY AND INDEPENDENCE.— 

20 The guidelines and requirements issued under 

21 subparagraph (A) shall include provisions to en22 sure the objectivity and independence of the eval23 uator so as to avoid any real or apparent con24 flict of interest or potential influence on the out25 come by— 
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1 ‘‘(i) parties to any such test; or 

2 ‘‘(ii) any other formal evaluation car3 ried out under this subchapter. 

4 ‘‘(C) FUNDING.—The guidelines and re5 quirements issued under subparagraph (A) shall 

6 establish evaluation funding levels based on the 

7 size and scope of each test that ensure adequate 

8 evaluation of the results of the test or project. 

9 ‘‘(2) SPECIAL RULE.—Any survey, questionnaire, 

10 or interview that the Secretary considers necessary to 

11 carry out the evaluation of any test or program as12 sessment activity under this subchapter shall not be 

13 subject to chapter 35 of title 44. 

14 ‘‘§ 525. National ITS Program Plan 

15 ‘‘(a) IN GENERAL.— 

16 ‘‘(1) UPDATES.—Not later than 1 year after the 

17 date of enactment of the Safe, Accountable, Flexible, 

18 and Efficient Transportation Equity Act of 2004, the 

19 Secretary, in consultation with interested stakeholders 

20 (including State transportation departments) shall 

21 develop a 5-year National ITS Program Plan. 

22 ‘‘(2) SCOPE.—The National ITS Program Plan 

23 shall— 
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1 ‘‘(A) specify the goals, objectives, and mile2 stones for the research and deployment of intel3 ligent transportation systems in the contexts of— 

4 ‘‘(i) major metropolitan areas; 

5 ‘‘(ii) smaller metropolitan and rural 

6 areas; and 

7 ‘‘(iii) commercial vehicle operations; 

8 ‘‘(B) specify the manner in which specific 

9 programs and projects will achieve the goals, ob10 jectives, and milestones referred to in subpara11 graph (A), including consideration of a 5-year 

12 timeframe for the goals and objectives; 

13 ‘‘(C) identify activities that provide for the 

14 dynamic development, testing, and necessary re15 vision of standards and protocols to promote and 

16 ensure interoperability in the implementation of 

17 intelligent transportation system technologies, 

18 including actions taken to establish standards; 

19 and 

20 ‘‘(D) establish a cooperative process with 

21 State and local governments for— 

22 ‘‘(i) determining desired surface trans23 portation system performance levels; and 

24 ‘‘(ii) developing plans for accelerating 

25 the incorporation of specific intelligent 
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1 transportation system capabilities into sur2 face transportation systems. 

3 ‘‘(b) REPORTING.—The National ITS Program Plan 

4 shall be transmitted and biennially updated as part of the 

5 surface transportation research and technology development 

6 strategic plan developed under section 508(c). 

7 ‘‘§ 526. National ITS architecture and standards 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) DEVELOPMENT, IMPLEMENTATION, AND

10 MAINTENANCE.—In accordance with section 12(d) of 

11 the National Technology Transfer and Advancement 

12 Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783), the 

13 Secretary shall develop, implement, and maintain a 

14 national ITS architecture and supporting standards 

15 and protocols to promote the widespread use and eval16 uation of intelligent transportation system technology 

17 as a component of the surface transportation systems 

18 of the United States. 

19 ‘‘(2) INTEROPERABILITY AND EFFICIENCY.—To 

20 the maximum extent practicable, the national ITS ar21 chitecture shall promote interoperability among, and 

22 efficiency of, intelligent transportation system tech23 nologies implemented throughout the United States. 

24 ‘‘(3) USE OF STANDARDS DEVELOPMENT ORGANI25 ZATIONS.—In carrying out this section, the Secretary 
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1 shall use the services of such standards development 

2 organizations as the Secretary determines to be ap3 propriate. 

4 ‘‘(b) PROVISIONAL STANDARDS.— 

5 ‘‘(1) IN GENERAL.—If the Secretary finds that 

6 the development or selection of an intelligent trans7 portation system standard jeopardizes the timely 

8 achievement of the objectives identified in subsection 

9 (a), the Secretary may establish a provisional stand10 ard— 

11 ‘‘(A) after consultation with affected parties; 

12 and 

13 ‘‘(B) by using, to the maximum extent prac14 ticable, the work product of appropriate stand15 ards development organizations. 

16 ‘‘(2) CRITICAL STANDARDS.—If a standard iden17 tified by the Secretary as critical has not been adopt18 ed and published by the appropriate standards devel19 opment organization by the date of enactment of this 

20 subchapter, the Secretary shall establish a provisional 

21 standard— 

22 ‘‘(A) after consultation with affected parties; 

23 and 
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1 ‘‘(B) by using, to the maximum extent prac2 ticable, the work product of appropriate stand3 ards development organizations. 

4 ‘‘(3) PERIOD OF EFFECTIVENESS.—A provisional 

5 standard established under paragraph (1) or (2) 

6 shall— 

7 ‘‘(A) be published in the Federal Register; 

8 and 

9 ‘‘(B) remain in effect until such time as the 

10 appropriate standards development organization 

11 adopts and publishes a standard. 

12 ‘‘(c) WAIVER OF REQUIREMENT TO ESTABLISH PROVI13 SIONAL CRITICAL STANDARD.— 

14 ‘‘(1) IN GENERAL.—The Secretary may waive 

15 the requirement under subsection (b)(2) to establish a 

16 provisional standard if the Secretary determines that 

17 additional time would be productive in, or that estab18 lishment of a provisional standard would be counter19 productive to, the timely achievement of the objectives 

20 identified in subsection (a). 

21 ‘‘(2) NOTICE.—The Secretary shall publish in 

22 the Federal Register a notice that describes— 

23 ‘‘(A) each standard for which a waiver of 

24 the provisional standard requirement is granted 

25 under paragraph (1); 
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1 ‘‘(B) the reasons for and effects of granting 

2 the waiver; and 

3 ‘‘(C) an estimate as to the date on which the 

4 standard is expected to be adopted through a 

5 process consistent with section 12(d) of the Na6 tional Technology Transfer and Advancement 

7 Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783). 

8 ‘‘(3) WITHDRAWAL OF WAIVER.— 

9 ‘‘(A) IN GENERAL.—The Secretary may 

10 withdraw a waiver granted under paragraph (1) 

11 at any time. 

12 ‘‘(B) NOTICE.—On withdrawal of a waiver, 

13 the Secretary shall publish in the Federal Reg14 ister a notice that describes— 

15 ‘‘(i) each standard for which the waiv16 er has been withdrawn; and 

17 ‘‘(ii) the reasons for withdrawing the 

18 waiver. 

19 ‘‘(d) CONFORMITY WITH NATIONAL ITS ARCHITEC20 TURE.— 

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graphs (2) and (3), the Secretary shall ensure that in23 telligent transportation system projects carried out 

24 using funds made available from the Highway Trust 

25 Fund conform to the national ITS architecture, ap-
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1 plicable standards or provisional standards, and pro2 tocols developed under subsection (a). 

3 ‘‘(2) DISCRETION OF SECRETARY.—The Sec4 retary may authorize exceptions to paragraph (1) for 

5 projects designed to achieve specific research objectives 

6 outlined in— 

7 ‘‘(A) the National ITS Program Plan under 

8 section 525; or 

9 ‘‘(B) the surface transportation research 

10 and technology development strategic plan devel11 oped under section 508(c). 

12 ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not 

13 apply to funds used for operation or maintenance of 

14 an intelligent transportation system in existence on 

15 the date of enactment of this subchapter. 

16 ‘‘§ 527. Commercial vehicle information systems and 

17 networks deployment 

18 ‘‘(a) DEFINITIONS.—In this section: 

19 ‘‘(1) COMMERCIAL VEHICLE INFORMATION SYS20 TEMS AND NETWORKS.—The term ‘commercial vehicle 

21 information systems and networks’ means the infor22 mation systems and communications networks that 

23 provide the capability to— 

24 ‘‘(A) improve the safety of commercial vehi25 cle operations; 
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1 ‘‘(B) increase the efficiency of regulatory in2 spection processes to reduce administrative bur3 dens by advancing technology to facilitate in4 spections and increase the effectiveness of enforce5 ment efforts; 

6 ‘‘(C) advance electronic processing of reg7 istration information, driver licensing informa8 tion, fuel tax information, inspection and crash 

9 data, and other safety information; 

10 ‘‘(D) enhance the safe passage of commercial 

11 vehicles across the United States and across 

12 international borders; and 

13 ‘‘(E) promote the communication of infor14 mation among the States and encourage 

15 multistate cooperation and corridor development. 

16 ‘‘(2) COMMERCIAL VEHICLE OPERATIONS.— 

17 ‘‘(A) IN GENERAL.—The term ‘commercial 

18 vehicle operations’ means motor carrier oper19 ations and motor vehicle regulatory activities as20 sociated with the commercial movement of goods 

21 (including hazardous materials) and passengers. 

22 ‘‘(B) INCLUSIONS.—The term ‘commercial 

23 vehicle operations’, with respect to the public sec24 tor, includes— 
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1 ‘‘(i) the issuance of operating creden2 tials; 

3 ‘‘(ii) the administration of motor vehi4 cle and fuel taxes; and 

5 ‘‘(iii) the administration of roadside 

6 safety and border crossing inspection and 

7 regulatory compliance operations. 

8 ‘‘(3) CORE DEPLOYMENT.—The term ‘core de9 ployment’ means the deployment of systems in a 

10 State necessary to provide the State with— 

11 ‘‘(A) safety information exchange to— 

12 ‘‘(i) electronically collect and transmit 

13 commercial vehicle and driver inspection 

14 data at a majority of inspection sites; 

15 ‘‘(ii) connect to the Safety and Fitness 

16 Electronic Records system for access to— 

17 ‘‘(I) interstate carrier and com18 mercial vehicle data; 

19 ‘‘(II) summaries of past safety 

20 performance; and 

21 ‘‘(III) commercial vehicle creden22 tials information; and 

23 ‘‘(iii) exchange carrier data and com24 mercial vehicle safety and credentials infor25 mation within the State and connect to 
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1 Safety and Fitness Electronic Records sys2 tem for access to interstate carrier and com3 mercial vehicle data; 

4 ‘‘(B) interstate credentials administration 

5 to— 

6 ‘‘(i)(I) perform end-to-end (including 

7 carrier application) jurisdiction applica8 tion processing, and credential issuance, of 

9 at least the International Registration Plan 

10 and International Fuel Tax Agreement cre11 dentials; and 

12 ‘‘(II) extend the processing to other cre13 dentials, including intrastate, titling, over14 size or overweight requirements, carrier reg15 istration, and hazardous materials; 

16 ‘‘(ii) connect to the International Reg17 istration Plan and International Fuel Tax 

18 Agreement clearinghouses; and 

19 ‘‘(iii)(I) have at least 10 percent of the 

20 transaction volume handled electronically; 

21 and 

22 ‘‘(II) have the capability to add more 

23 carriers and to extend to branch offices 

24 where applicable; and 
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1 ‘‘(C) roadside electronic screening to elec2 tronically screen transponder-equipped commer3 cial vehicles at a minimum of 1 fixed or mobile 

4 inspection site and to replicate the screening at 

5 other sites. 

6 ‘‘(4) EXPANDED DEPLOYMENT.—The term ‘ex7 panded deployment’ means the deployment of systems 

8 in a State that— 

9 ‘‘(A) exceed the requirements of a core de10 ployment of commercial vehicle information sys11 tems and networks; 

12 ‘‘(B) improve safety and the productivity of 

13 commercial vehicle operations; and 

14 ‘‘(C) enhance transportation security. 

15 ‘‘(b) PROGRAM.—The Secretary shall carry out a com16 mercial vehicle information systems and networks program 

17 to— 

18 ‘‘(1) improve the safety and productivity of com19 mercial vehicles and drivers; and 

20 ‘‘(2) reduce costs associated with commercial ve21 hicle operations and Federal and State commercial 

22 vehicle regulatory requirements. 

23 ‘‘(c) PURPOSE.—It is the purpose of the program to 

24 advance the technological capability and promote the de25 ployment of intelligent transportation system applications 
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1 for commercial vehicle operations, including commercial ve2 hicle, commercial driver, and carrier-specific information 

3 systems and networks. 

4 ‘‘(d) CORE DEPLOYMENT GRANTS.— 

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

6 grants to eligible States for the core deployment of 

7 commercial vehicle information systems and networks. 

8 ‘‘(2) ELIGIBILITY.—To be eligible for a core de9 ployment grant under this subsection, a State shall— 

10 ‘‘(A) have a commercial vehicle information 

11 systems and networks program plan and a top 

12 level system design approved by the Secretary; 

13 ‘‘(B) certify to the Secretary that the com14 mercial vehicle information systems and net15 works deployment activities of the State (includ16 ing hardware procurement, software and system 

17 development, and infrastructure modifica18 tions)— 

19 ‘‘(i) are consistent with the national 

20 intelligent transportation systems and com21 mercial vehicle information systems and 

22 networks architectures and available stand23 ards; and 
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1 ‘‘(ii) promote interoperability and effi2 ciency, to the maximum extent practicable; 

3 and 

4 ‘‘(C) agree to execute interoperability tests 

5 developed by the Federal Motor Carrier Safety 

6 Administration to verify that the systems of the 

7 State conform with the national intelligent 

8 transportation systems architecture, applicable 

9 standards, and protocols for commercial vehicle 

10 information systems and networks. 

11 ‘‘(3) AMOUNT OF GRANTS.—The maximum ag12 gregate amount a State may receive under this sub13 section for the core deployment of commercial vehicle 

14 information systems and networks may not exceed 

15 $2,500,000, including funds received under section 

16 2001(a) of the Safe, Accountable, Flexible, and Effi17 cient Transportation Equity Act of 2004 for the core 

18 deployment of commercial vehicle information systems 

19 and networks. 

20 ‘‘(4) USE OF FUNDS.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), funds from a grant under this sub23 section may only be used for the core deployment 

24 of commercial vehicle information systems and 

25 networks. 
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1 ‘‘(B) REMAINING FUNDS.—An eligible State 

2 that has completed the core deployment of com3 mercial vehicle information systems and net4 works, or completed the deployment before core 

5 deployment grant funds are expended, may use 

6 the remaining core deployment grant funds for 

7 the expanded deployment of commercial vehicle 

8 information systems and networks in the State. 

9 ‘‘(e) EXPANDED DEPLOYMENT GRANTS.— 

10 ‘‘(1) IN GENERAL.—For each fiscal year, from 

11 the funds remaining after the Secretary has made 

12 core deployment grants under subsection (d), the Sec13 retary may make grants to each eligible State, on re14 quest, for the expanded deployment of commercial ve15 hicle information systems and networks. 

16 ‘‘(2) ELIGIBILITY.—Each State that has com17 pleted the core deployment of commercial vehicle in18 formation systems and networks shall be eligible for 

19 an expanded deployment grant. 

20 ‘‘(3) AMOUNT OF GRANTS.—Each fiscal year, the 

21 Secretary may distribute funds available for ex22 panded deployment grants equally among the eligible 

23 States in an amount that does not exceed $1,000,000 

24 for each State. 
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1 ‘‘(4) USE OF FUNDS.—A State may use funds 

2 from a grant under this subsection only for the ex3 panded deployment of commercial vehicle information 

4 systems and networks. 

5 ‘‘(f) FEDERAL SHARE.—The Federal share of the cost 

6 of a project payable from funds made available to carry 

7 out this section shall be the share applicable under section 

8 120(b), as adjusted under subsection (d) of that section. 

9 ‘‘(g) FUNDING.—Funds authorized to be appropriated 

10 to carry out this section shall be available for obligation 

11 in the same manner and to the same extent as if the funds 

12 were apportioned under chapter 1, except that the funds 

13 shall remain available until expended. 

14 ‘‘§ 528. Research and development 

15 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

16 comprehensive program of intelligent transportation system 

17 research, development, and operational tests of intelligent 

18 vehicles and intelligent infrastructure systems, and other 

19 similar activities that are necessary to carry out this sub20 chapter. 

21 ‘‘(b) PRIORITY AREAS.—Under the program, the Sec22 retary shall give priority to funding projects that— 

23 ‘‘(1) assist in the development of an inter24 connected national intelligent transportation system 

25 network that— 
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1 ‘‘(A) improves the reliability of the surface 

2 transportation system; 

3 ‘‘(B) supports national security; 

4 ‘‘(C) reduces, by at least 20 percent, the cost 

5 of manufacturing, deploying, and operating in6 telligent transportation systems network compo7 nents; 

8 ‘‘(D) could assist in deployment of the 

9 Armed Forces in response to a crisis; and 

10 ‘‘(E) improves response to, and evacuation 

11 of the public during, an emergency situation; 

12 ‘‘(2) address traffic management, incident man13 agement, transit management, toll collection traveler 

14 information, or highway operations systems with 

15 goals of— 

16 ‘‘(A) reducing metropolitan congestion by 5 

17 percent by 2010; 

18 ‘‘(B) ensuring that a national, interoperable 

19 511 system, along with a national traffic infor20 mation system that includes a user-friendly, 

21 comprehensive website, is fully implemented for 

22 use by travelers throughout the United States by 

23 September 30, 2010; and 

24 ‘‘(C)(i) improving incident management re25 sponse, particularly in rural areas, so that rural 
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1 emergency response times are reduced by an av2 erage of 10 minutes; and 

3 ‘‘(ii) subject to subsection (d), improving 

4 communication between emergency care pro5 viders and trauma centers; 

6 ‘‘(3) address traffic management, incident man7 agement, transit management, toll collection, traveler 

8 information, or highway operations systems; 

9 ‘‘(4) conduct operational tests of the integration 

10 of at least 3 crash-avoidance technologies in passenger 

11 vehicles; 

12 ‘‘(5) incorporate human factors research, includ13 ing the science of the driving process; 

14 ‘‘(6) facilitate the integration of intelligent infra15 structure, vehicle, and control technologies; 

16 ‘‘(7) incorporate research on the impact of envi17 ronmental, weather, and natural conditions on intel18 ligent transportation systems, including the effects of 

19 cold climates; 

20 ‘‘(8) as determined by the Secretary, will im21 prove the overall safety performance of vehicles and 

22 roadways, including the use of real-time setting of 

23 speed limits through the use of speed management 

24 technology; 

25 ‘‘(9) examine— 
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1 ‘‘(A) the application to intelligent transpor2 tation systems of appropriately modified existing 

3 technologies from other industries; and 

4 ‘‘(B) the development of new, more robust 

5 intelligent transportation systems technologies 

6 and instrumentation; 

7 ‘‘(10) develop and test communication tech8 nologies that— 

9 ‘‘(A) are based on an assessment of the 

10 needs of officers participating in a motor carrier 

11 safety program funded under section 31104 of 

12 title 49; 

13 ‘‘(B) take into account the effectiveness and 

14 adequacy of available technology; 

15 ‘‘(C) address systems integration, 

16 connectivity, and interoperability challenges; 

17 and 

18 ‘‘(D) provide the means for officers partici19 pating in a motor carrier safety program funded 

20 under section 31104 of title 49 to directly assess, 

21 without an intermediary, current and accurate 

22 safety and regulatory information on motor car23 riers, commercial motor vehicles and drivers at 

24 roadside or mobile inspection facilities; 
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1 ‘‘(11) enhance intermodal use of intelligent 

2 transportation systems for diverse groups, including 

3 for emergency and health-related services; 

4 ‘‘(12) improve sensing and wireless communica5 tions that provide real-time information regarding 

6 congestion and incidents; 

7 ‘‘(13) develop and test high-accuracy, lane-level, 

8 real-time accessible digital map architectures that can 

9 be used by intelligent vehicles and intelligent infra10 structure elements to facilitate safety and crash avoid11 ance (including establishment of national standards 

12 for an open-architecture digital map of all public 

13 roads that is compatible with electronic 9-1-1 serv14 ices); 

15 ‘‘(14) encourage the dual-use of intelligent trans16 portation system technologies (such as wireless com17 munications) for— 

18 ‘‘(A) emergency services; 

19 ‘‘(B) road pricing; and 

20 ‘‘(C) local economic development; and 

21 ‘‘(15) advance the use of intelligent transpor22 tation systems to facilitate high-performance trans23 portation systems, such as through— 

24 ‘‘(A) congestion-pricing; 

25 ‘‘(B) real-time facility management; 
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1 ‘‘(C) rapid-emergency response; and 

2 ‘‘(D) just-in-time transit. 

3 ‘‘(c) OPERATIONAL TESTS.—Operational tests con4 ducted under this section shall be designed for— 

5 ‘‘(1) the collection of data to permit objective 

6 evaluation of the results of the tests; 

7 ‘‘(2) the derivation of cost-benefit information 

8 that is useful to others contemplating deployment of 

9 similar systems; and 

10 ‘‘(3) the development and implementation of 

11 standards. 

12 ‘‘(d) FEDERAL SHARE.—The Federal share of the costs 

13 of operational tests under subsection (a) shall not exceed 

14 80 percent. 

15 ‘‘§ 529. Use of funds 

16 ‘‘(a) IN GENERAL.—For each fiscal year, not more 

17 than $5,000,000 of the funds made available to carry out 

18 this subchapter shall be used for intelligent transportation 

19 system outreach, public relations, displays, tours, and bro20 chures. 

21 ‘‘(b) APPLICABILITY.—Subsection (a) shall not apply 

22 to intelligent transportation system training, scholarships, 

23 or the publication or distribution of research findings, tech24 nical guidance, or similar documents.’’. 
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1 (b) CONFORMING AMENDMENT.—Title V of the Trans2 portation Equity Act for the 21st Century is amended by 

3 striking subtitle C (23 U.S.C. 502 note; 112 Stat. 452). 

4 TITLE III—PUBLIC 

5 TRANSPORTATION 

6 SEC. 3001. SHORT TITLE. 

7 This title may be cited as the ‘‘Federal Public Trans8 portation Act of 2004’’. 

9 SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES 

10 CODE; UPDATED TERMINOLOGY. 

11 (a) AMENDMENTS TO TITLE 49.—Except as otherwise 

12 specifically provided, whenever in this title an amendment 

13 or repeal is expressed in terms of an amendment to, or re14 peal of, a section or other provision of law, the reference 

15 shall be considered to be made to a section or other provi16 sion of title 49, United States Code. 

17 (b) UPDATED TERMINOLOGY.—Except for sections 

18 5301(f), 5302(a)(7), and 5315, chapter 53, including the 

19 chapter analysis, is amended by striking ‘‘mass transpor20 tation’’ each place it appears and inserting ‘‘public trans21 portation’’. 

22 SEC. 3003. POLICIES, FINDINGS, AND PURPOSES. 

23 (a) DEVELOPMENT AND REVITALIZATION OF PUBLIC

24 TRANSPORTATION SYSTEMS.—Section 5301(a) is amended 

25 to read as follows: 
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1 ‘‘(a) DEVELOPMENT AND REVITALIZATION OF PUBLIC

2 TRANSPORTATION SYSTEMS.—It is in the economic interest 

3 of the United States to foster the development and revital4 ization of public transportation systems, which are coordi5 nated with other modes of transportation, that maximize 

6 the efficient, secure, and safe mobility of individuals and 

7 minimize environmental impacts.’’. 

8 (b) GENERAL FINDINGS.—Section 5301(b)(1) is 

9 amended— 

10 (1) by striking ‘‘70 percent’’ and inserting ‘‘two11 thirds’’; and 

12 (2) by striking ‘‘urban areas’’ and inserting ‘‘ur13 banized areas’’. 

14 (c) PRESERVING THE ENVIRONMENT.—Section 5301(e) 

15 is amended— 

16 (1) by striking ‘‘an urban’’ and inserting ‘‘a’’; 

17 and 

18 (2) by striking ‘‘under sections 5309 and 5310 of 

19 this title’’. 

20 (d) GENERAL PURPOSES.—Section 5301(f) is amend21 ed— 

22 (1) in paragraph (1)— 

23 (A) by striking ‘‘improved mass’’ and in24 serting ‘‘improved public’’; and 
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1 (B) by striking ‘‘public and private mass 

2 transportation companies’’ and inserting ‘‘public 

3 transportation companies and private companies 

4 engaged in public transportation’’; 

5 (2) in paragraph (2)— 

6 (A) by striking ‘‘urban mass’’ and inserting 

7 ‘‘public’’; and 

8 (B) by striking ‘‘public and private mass 

9 transportation companies’’ and inserting ‘‘public 

10 transportation companies and private companies 

11 engaged in public transportation’’; 

12 (3) in paragraph (3)— 

13 (A) by striking ‘‘urban mass’’ and inserting 

14 ‘‘public’’; and 

15 (B) by striking ‘‘public or private mass 

16 transportation companies’’ and inserting ‘‘public 

17 transportation companies or private companies 

18 engaged in public transportation’’; and 

19 (4) in paragraph (5), by striking ‘‘urban mass’’ 

20 and inserting ‘‘public’’. 

21 SEC. 3004. DEFINITIONS. 

22 Section 5302(a) is amended— 

23 (1) in paragraph (1)— 

24 (A) in subparagraph (G)(i), by inserting 

25 ‘‘including the intercity bus and intercity rail 
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1 portions of such facility or mall,’’ after ‘‘trans2 portation mall,’’; 

3 (B) in subparagraph (G)(ii), by inserting ‘‘, 

4 except for the intercity bus portion of intermodal 

5 facilities or malls,’’ after ‘‘commercial revenue6 producing facility’’; 

7 (C) in subparagraph (H)— 

8 (i) by striking ‘‘and’’ after ‘‘innova9 tive’’ and inserting ‘‘or’’; and 

10 (ii) by striking ‘‘or’’ after the semi11 colon at the end; 

12 (D) in subparagraph (I), by striking the pe13 riod at the end and inserting a semicolon; and 

14 (E) by adding at the end the following: 

15 ‘‘(J) crime prevention and security, includ16 ing— 

17 ‘‘(i) projects to refine and develop secu18 rity and emergency response plans; or 

19 ‘‘(ii) projects to detect chemical or bio20 logical agents in public transportation; 

21 ‘‘(K) conducting emergency response 

22 drills with public transportation agencies 

23 and local first response agencies or security 

24 training for public transportation employ-
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1 ees, except for expenses relating to oper2 ations; or 

3 ‘‘(L) establishing a debt service reserve, 

4 made up of deposits with a bondholder’s 

5 trustee, to ensure the timely payment of 

6 principal and interest on bonds issued by a 

7 grant recipient to finance an eligible project 

8 under this chapter.’’; 

9 (2) by striking paragraph (16); 

10 (3) by redesignating paragraphs (8) through (15) 

11 as paragraphs (9) through (16), respectively; 

12 (4) by striking paragraph (7) and inserting the 

13 following: 

14 ‘‘(7) MASS TRANSPORTATION.—The term ‘mass 

15 transportation’ means public transportation. 

16 ‘‘(8) MOBILITY MANAGEMENT.—The term ‘mobil17 ity management’ means a short-range planning or 

18 management activity or project that does not include 

19 operating public transportation services and— 

20 ‘‘(A) improves coordination among public 

21 transportation providers, including private com22 panies engaged in public transportation; 

23 ‘‘(B) addresses customer needs by tailoring 

24 public transportation services to specific market 

25 niches; or 
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1 ‘‘(C) manages public transportation de2 mand.’’; 

3 (5) by amending paragraph (11), as redesig4 nated, to read as follows: 

5 ‘‘(11) PUBLIC TRANSPORTATION.—The term 

6 ‘public transportation’ means transportation by a 

7 conveyance that provides local regular and continuing 

8 general or special transportation to the public, but 

9 does not include school bus, charter bus, intercity bus 

10 or passenger rail, or sightseeing transportation.’’; 

11 (6) in subparagraphs (A) and (E) of paragraph 

12 (16), as redesignated, by striking ‘‘and’’ each place it 

13 appears and inserting ‘‘or’’; and 

14 (7) by amending paragraph (17) to read as fol15 lows: 

16 ‘‘(17) URBANIZED AREA.—The term ‘urbanized 

17 area’ means an area encompassing a population of 

18 not less than 50,000 people that has been defined and 

19 designated in the most recent decennial census as an 

20 ‘urbanized area’ by the Secretary of Commerce.’’. 

21 SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING. 

22 Section 5303 is amended to read as follows: 

23 ‘‘§ 5303. Metropolitan transportation planning 

24 ‘‘(a) DEFINITIONS.—As used in this section and in sec25 tion 5304, the following definitions shall apply: 
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1 ‘‘(1) CONSULTATION.—A ‘consultation’ occurs 

2 when 1 party— 

3 ‘‘(A) confers with another identified party 

4 in accordance with an established process; 

5 ‘‘(B) prior to taking action, considers the 

6 views of the other identified party; and 

7 ‘‘(C) periodically informs that party about 

8 action taken. 

9 ‘‘(2) METROPOLITAN PLANNING AREA.—The term 

10 ‘metropolitan planning area’ means the geographic 

11 area determined by agreement between the metropoli12 tan planning organization and the Governor under 

13 subsection (d). 

14 ‘‘(3) METROPOLITAN PLANNING ORGANIZA15 TION.—The term ‘metropolitan planning organiza16 tion’ means the Policy Board of the organization des17 ignated under subsection (c). 

18 ‘‘(4) NONMETROPOLITAN AREA.—The term ‘non19 metropolitan area’ means any geographic area out20 side all designated metropolitan planning areas. 

21 ‘‘(5) NONMETROPOLITAN LOCAL OFFICIAL.—The 

22 term ‘nonmetropolitan local official’ means any elect23 ed or appointed official of general purpose local gov24 ernment located in a nonmetropolitan area who is re-
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1 sponsible for transportation services for such local 

2 government. 

3 ‘‘(b) GENERAL REQUIREMENTS.— 

4 ‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.— 

5 To accomplish the objectives described in section 

6 5301(a), each metropolitan planning organization, in 

7 cooperation with the State and public transportation 

8 operators, shall develop transportation plans and pro9 grams for metropolitan planning areas of the State in 

10 which it is located. 

11 ‘‘(2) CONTENTS.—The plans and programs devel12 oped under paragraph (1) for each metropolitan plan13 ning area shall provide for the development and inte14 grated management and operation of transportation 

15 systems and facilities (including pedestrian walkways 

16 and bicycle transportation facilities) that will func17 tion as an intermodal transportation system for the 

18 metropolitan planning area and as an integral part 

19 of an intermodal transportation system for the State 

20 and the United States. 

21 ‘‘(3) PROCESS OF DEVELOPMENT.—The process 

22 for developing the plans and programs shall provide 

23 for consideration of all modes of transportation and 

24 shall be continuing, cooperative, and comprehensive to 
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1 the degree appropriate, based on the complexity of the 

2 transportation problems to be addressed. 

3 ‘‘(4) PLANNING AND PROJECT DEVELOPMENT.— 

4 The metropolitan planning organization, the State 

5 Department of Transportation, and the appropriate 

6 public transportation provider shall agree upon the 

7 approaches that will be used to evaluate alternatives 

8 and identify transportation improvements that ad9 dress the most complex problems and pressing trans10 portation needs in the metropolitan area. 

11 ‘‘(c) DESIGNATION OF METROPOLITAN PLANNING OR12 GANIZATIONS.— 

13 ‘‘(1) IN GENERAL.—To carry out the transpor14 tation planning process under this section, a metro15 politan planning organization shall be designated for 

16 each urbanized area— 

17 ‘‘(A) by agreement between the Governor 

18 and units of general purpose local government 

19 that combined represent not less than 75 percent 

20 of the affected population (including the incor21 porated city or cities named by the Bureau of 

22 the Census in designating the urbanized area); or 

23 ‘‘(B) in accordance with procedures estab24 lished by applicable State or local law. 
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1 ‘‘(2) STRUCTURE.—Each metropolitan planning 

2 organization designated under paragraph (1) that 

3 serves an area identified as a transportation manage4 ment area shall consist of— 

5 ‘‘(A) local elected officials; 

6 ‘‘(B) officials of public agencies that admin7 ister or operate major modes of transportation in 

8 the metropolitan area; and 

9 ‘‘(C) appropriate State officials. 

10 ‘‘(3) LIMITATION ON STATUTORY CONSTRUC11 TION.—Nothing in this subsection shall be construed 

12 to interfere with the authority, under any State law 

13 in effect on December 18, 1991, of a public agency 

14 with multimodal transportation responsibilities— 

15 ‘‘(A) to develop plans and programs for 

16 adoption by a metropolitan planning organiza17 tion; and 

18 ‘‘(B) to develop long-range capital plans, 

19 coordinate transit services and projects, and 

20 carry out other activities pursuant to State law. 

21 ‘‘(4) CONTINUING DESIGNATION.—The designa22 tion of a metropolitan planning organization under 

23 this subsection or any other provision of law shall re24 main in effect until the metropolitan planning orga25 nization is redesignated under paragraph (5). 
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1 ‘‘(5) REDESIGNATION PROCEDURES.—A metro2 politan planning organization may be redesignated 

3 by agreement between the Governor and units of gen4 eral purpose local government that combined rep5 resent not less than 75 percent of the existing plan6 ning area population (including the incorporated city 

7 or cities named by the Bureau of the Census in desig8 nating the urbanized area) as appropriate to carry 

9 out this section. 

10 ‘‘(6) DESIGNATION OF MORE THAN 1 METROPOLI11 TAN PLANNING ORGANIZATION.—More than 1 metro12 politan planning organization may be designated 

13 within an existing metropolitan planning area only 

14 if the Governor and the existing metropolitan plan15 ning organization determine that the size and com16 plexity of the existing metropolitan planning area 

17 make designation of more than 1 metropolitan plan18 ning organization for the area appropriate. 

19 ‘‘(d) METROPOLITAN PLANNING AREA BOUNDARIES.— 

20 ‘‘(1) IN GENERAL.—For the purposes of this sec21 tion, the boundaries of a metropolitan planning area 

22 shall be determined by agreement between the metro23 politan planning organization and the Governor. 

24 ‘‘(2) INCLUDED AREA.—Each metropolitan plan25 ning area— 
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1 ‘‘(A) shall encompass at least the existing 

2 urbanized area and the contiguous area expected 

3 to become urbanized within a 20-year forecast 

4 period for the transportation plan; and 

5 ‘‘(B) may encompass the entire metropoli6 tan statistical area or consolidated metropolitan 

7 statistical area, as defined by the Office of Man8 agement and Budget. 

9 ‘‘(3) IDENTIFICATION OF NEW URBANIZED AREAS

10 WITHIN EXISTING PLANNING AREA BOUNDARIES.—The 

11 designation by the Bureau of the Census of new ur12 banized areas within an existing metropolitan plan13 ning area shall not require the redesignation of the 

14 existing metropolitan planning organization. 

15 ‘‘(4) EXISTING METROPOLITAN PLANNING AREAS

16 IN NONATTAINMENT.—Notwithstanding paragraph 

17 (2), in the case of an urbanized area designated as a 

18 nonattainment area for ozone or carbon monoxide 

19 under the Clean Air Act (42 U.S.C. 7401 et seq.), the 

20 boundaries of the metropolitan planning area in ex21 istence as of the date of enactment of the Federal Pub22 lic Transportation Act of 2004 shall be retained, ex23 cept that the boundaries may be adjusted by agree24 ment of the Governor and affected metropolitan plan25 ning organizations in accordance with paragraph (5). 
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1 ‘‘(5) NEW METROPOLITAN PLANNING AREAS IN

2 NONATTAINMENT.—If an urbanized area is designated 

3 after the date of enactment of this paragraph in a 

4 nonattainment area for ozone or carbon monoxide, the 

5 boundaries of the metropolitan planning area— 

6 ‘‘(A) shall be established in accordance with 

7 subsection (c)(1); 

8 ‘‘(B) shall encompass the areas described in 

9 paragraph (2)(A); 

10 ‘‘(C) may encompass the areas described in 

11 paragraph (2)(B); and 

12 ‘‘(D) may address any nonattainment iden13 tified under the Clean Air Act (42 U.S.C. 7401 

14 et seq.) for ozone or carbon monoxide. 

15 ‘‘(e) COORDINATION IN MULTISTATE AREAS.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall encour17 age each Governor with responsibility for a portion of 

18 a multistate metropolitan area and the appropriate 

19 metropolitan planning organizations to provide co20 ordinated transportation planning for the entire met21 ropolitan area. 

22 ‘‘(2) INTERSTATE COMPACTS.—States are au23 thorized— 

24 ‘‘(A) to enter into agreements or compacts 

25 with other States, which agreements or compacts 
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1 are not in conflict with any law of the United 

2 States, for cooperative efforts and mutual assist3 ance in support of activities authorized under 

4 this section as the activities pertain to interstate 

5 areas and localities within the States; and 

6 ‘‘(B) to establish such agencies, joint or oth7 erwise, as the States may determine desirable for 

8 making the agreements and compacts effective. 

9 ‘‘(3) LAKE TAHOE REGION.— 

10 ‘‘(A) DEFINITION.—In this paragraph, the 

11 term ‘Lake Tahoe region’ has the meaning given 

12 the term ‘region’ in subdivision (a) of article II 

13 of the Tahoe Regional Planning Compact, as set 

14 forth in the first section of Public Law 96–551 

15 (94 Stat. 3234). 

16 ‘‘(B) TRANSPORTATION PLANNING PROC17 ESS.—The Secretary shall— 

18 ‘‘(i) establish with the Federal land 

19 management agencies that have jurisdiction 

20 over land in the Lake Tahoe region a trans21 portation planning process for the region; 

22 and 

23 ‘‘(ii) coordinate the transportation 

24 planning process with the planning process 
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1 required of State and local governments 

2 under this section and section 5304. 

3 ‘‘(C) INTERSTATE COMPACT.— 

4 ‘‘(i) IN GENERAL.—Subject to clause 

5 (ii) and notwithstanding subsection (c), to 

6 carry out the transportation planning proc7 ess required by this section, California and 

8 Nevada may designate a metropolitan plan9 ning organization for the Lake Tahoe re10 gion, by agreement between the Governor of 

11 the State of California, the Governor of the 

12 State of Nevada, and units of general pur13 pose local government that combined rep14 resent not less than 75 percent of the af15 fected population (including the incor16 porated city or cities named by the Bureau 

17 of the Census in designating the urbanized 

18 area), or in accordance with procedures es19 tablished by applicable State or local law. 

20 ‘‘(ii) INVOLVEMENT OF FEDERAL LAND

21 MANAGEMENT AGENCIES.— 

22 ‘‘(I) REPRESENTATION.—The pol23 icy board of a metropolitan planning 

24 organization designated under clause 

25 (i) shall include a representative of 
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1 each Federal land management agency 

2 that has jurisdiction over land in the 

3 Lake Tahoe region. 

4 ‘‘(II) FUNDING.—In addition to 

5 funds made available to the metropoli6 tan planning organization under other 

7 provisions of title 23 and this chapter, 

8 not more than 1 percent of the funds 

9 allocated under section 202 of title 23 

10 may be used to carry out the transpor11 tation planning process for the Lake 

12 Tahoe region under this subparagraph. 

13 ‘‘(D) ACTIVITIES.—Highway projects in14 cluded in transportation plans developed under 

15 this paragraph— 

16 ‘‘(i) shall be selected for funding in a 

17 manner that facilitates the participation of 

18 the Federal land management agencies that 

19 have jurisdiction over land in the Lake 

20 Tahoe region; and 

21 ‘‘(ii) may, in accordance with chapter 

22 2 of title 23, be funded using funds allocated 

23 under section 202 of title 23. 

24 ‘‘(f) COORDINATION OF METROPOLITAN PLANNING OR25 GANIZATIONS.— 
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1 ‘‘(1) NONATTAINMENT AREAS.—If more than 1 

2 metropolitan planning organization has authority 

3 within a metropolitan area or an area which is des4 ignated as a nonattainment area for ozone or carbon 

5 monoxide under the Clean Air Act (42 U.S.C. 7401 

6 et seq.), each metropolitan planning organization 

7 shall consult with the other metropolitan planning or8 ganizations designated for such area and the State in 

9 the coordination of plans required by this section. 

10 ‘‘(2) TRANSPORTATION IMPROVEMENTS LOCATED

11 IN MULTIPLE METROPOLITAN PLANNING AREAS.—If a 

12 transportation improvement funded from the highway 

13 trust fund is located within the boundaries of more 

14 than 1 metropolitan planning area, the metropolitan 

15 planning organizations shall coordinate plans regard16 ing the transportation improvement. 

17 ‘‘(3) INTERREGIONAL AND INTERSTATE PROJECT

18 IMPACTS.—Planning for National Highway System, 

19 commuter rail projects, or other projects with substan20 tial impacts outside a single metropolitan planning 

21 area or State shall be coordinated directly with the 

22 affected, contiguous, metropolitan planning organiza23 tions and States. 

24 ‘‘(4) COORDINATION WITH OTHER PLANNING

25 PROCESSES.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall en2 courage each metropolitan planning organiza3 tion to coordinate its planning process, to the 

4 maximum extent practicable, with those officials 

5 responsible for other types of planning activities 

6 that are affected by transportation, including 

7 State and local land use planning, economic de8 velopment, environmental protection, airport op9 erations, housing, and freight. 

10 ‘‘(B) OTHER CONSIDERATIONS.—The metro11 politan planning process shall develop transpor12 tation plans with due consideration of, and in 

13 coordination with, other related planning activi14 ties within the metropolitan area. This should 

15 include the design and delivery of transportation 

16 services within the metropolitan area that are 

17 provided by— 

18 ‘‘(i) recipients of assistance under this 

19 chapter; 

20 ‘‘(ii) governmental agencies and non21 profit organizations (including representa22 tives of the agencies and organizations) that 

23 receive Federal assistance from a source 

24 other than the Department of Transpor-
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1 tation to provide nonemergency transpor2 tation services; and 

3 ‘‘(iii) recipients of assistance under 

4 section 204 of title 23. 

5 ‘‘(g) SCOPE OF PLANNING PROCESS.— 

6 ‘‘(1) IN GENERAL.—The goals and objectives de7 veloped through the metropolitan planning process for 

8 a metropolitan planning area under this section shall 

9 address, in relation to the performance of the metro10 politan area transportation systems— 

11 ‘‘(A) supporting the economic vitality of the 

12 metropolitan area, especially by enabling global 

13 competitiveness, productivity, and efficiency, in14 cluding through services provided by public and 

15 private operators; 

16 ‘‘(B) increasing the safety of the transpor17 tation system for motorized and nonmotorized 

18 users; 

19 ‘‘(C) increasing the security of the transpor20 tation system for motorized and nonmotorized 

21 users; 

22 ‘‘(D) increasing the accessibility and mobil23 ity of people and for freight, including through 

24 services provided by public and private opera25 tors; 
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1 ‘‘(E) protecting and enhancing the environ2 ment (including the protection of habitat, water 

3 quality, and agricultural and forest land, while 

4 minimizing invasive species), promoting energy 

5 conservation, and promoting consistency between 

6 transportation improvements and State and 

7 local land use planning and economic develop8 ment patterns (including minimizing adverse 

9 health effects from mobile source air pollution 

10 and promoting the linkage of the transportation 

11 and development goals of the metropolitan area); 

12 ‘‘(F) enhancing the integration and 

13 connectivity of the transportation system, across 

14 and between modes, for people and freight, in15 cluding through services provided by public and 

16 private operators; 

17 ‘‘(G) promoting efficient system manage18 ment and operation; and 

19 ‘‘(H) emphasizing the preservation and effi20 cient use of the existing transportation system, 

21 including services provided by public and pri22 vate operators. 

23 ‘‘(2) SELECTION OF FACTORS.—After soliciting 

24 and considering any relevant public comments, the 

25 metropolitan planning organization shall determine 
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1 which of the factors described in paragraph (1) are 

2 most appropriate to consider. 

3 ‘‘(3) FAILURE TO CONSIDER FACTORS.—The fail4 ure to consider any factor specified in paragraph (1) 

5 shall not be reviewable by any court under title 23, 

6 this title, subchapter II of chapter 5 of title 5, or 

7 chapter 7 of title 5 in any matter affecting a trans8 portation plan, a transportation improvement plan, a 

9 project or strategy, or the certification of a planning 

10 process. 

11 ‘‘(h) DEVELOPMENT OF TRANSPORTATION PLAN.— 

12 ‘‘(1) IN GENERAL.— 

13 ‘‘(A) REQUIREMENT.—Each metropolitan 

14 planning organization shall develop a transpor15 tation plan for its metropolitan planning area 

16 in accordance with this subsection, and update 

17 such plan— 

18 ‘‘(i) not less frequently than once every 

19 4 years in areas designated as nonattain20 ment, as defined in section 107(d) of the 

21 Clean Air Act (42 U.S.C. 7407(d)), and in 

22 areas that were nonattainment that have 

23 been redesignated as attainment, in accord24 ance with paragraph (3) of such section, 

25 with a maintenance plan under section 
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1 175A of the Clean Air Act (42 U.S.C. 

2 7505a); or 

3 ‘‘(ii) not less frequently than once 

4 every 5 years in areas designated as attain5 ment, as defined in section 107(d) of the 

6 Clean Air Act. 

7 ‘‘(B) COORDINATION FACTORS.—In devel8 oping the transportation plan under this section, 

9 each metropolitan planning organization shall 

10 consider the factors described in subsection (f) 

11 over a 20-year forecast period. 

12 ‘‘(C) FINANCIAL ESTIMATES.—For the pur13 pose of developing the transportation plan, the 

14 metropolitan planning organization, transit op15 erator, and State shall cooperatively develop esti16 mates of funds that will be available to support 

17 plan implementation. 

18 ‘‘(2) MITIGATION ACTIVITIES.— 

19 ‘‘(A) IN GENERAL.—A transportation plan 

20 under this subsection shall include a discussion 

21 of— 

22 ‘‘(i) types of potential habitat, 

23 hydrological, and environmental mitigation 

24 activities that may assist in compensating 
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1 for loss of habitat, wetland, and other envi2 ronmental functions; and 

3 ‘‘(ii) potential areas to carry out these 

4 activities, including a discussion of areas 

5 that may have the greatest potential to re6 store and maintain the habitat types and 

7 hydrological or environmental functions af8 fected by the plan. 

9 ‘‘(B) CONSULTATION.—The discussion de10 scribed in subparagraph (A) shall be developed 

11 in consultation with Federal and State tribal 

12 wildlife, land management, and regulatory agen13 cies. 

14 ‘‘(3) CONTENTS.— A transportation plan under 

15 this subsection shall be in a form that the Secretary 

16 determines to be appropriate and shall contain— 

17 ‘‘(A) an identification of transportation fa18 cilities, including major roadways, transit, 

19 multimodal and intermodal facilities, intermodal 

20 connectors, and other relevant facilities identified 

21 by the metropolitan planning organization, 

22 which should function as an integrated metro23 politan transportation system, emphasizing those 

24 facilities that serve important national and re25 gional transportation functions; 
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1 ‘‘(B) a financial plan that— 

2 ‘‘(i) demonstrates how the adopted 

3 transportation plan can be implemented; 

4 ‘‘(ii) indicates resources from public 

5 and private sources that are reasonably ex6 pected to be made available to carry out the 

7 plan; 

8 ‘‘(iii) recommends any additional fi9 nancing strategies for needed projects and 

10 programs; and 

11 ‘‘(iv) may include, for illustrative pur12 poses, additional projects that would be in13 cluded in the adopted transportation plan if 

14 approved by the Secretary and reasonable 

15 additional resources beyond those identified 

16 in the financial plan were available; 

17 ‘‘(C) operational and management strate18 gies to improve the performance of existing 

19 transportation facilities to relieve vehicular con20 gestion and maximize the safety and mobility of 

21 people and goods; 

22 ‘‘(D) capital investment and other strategies 

23 to preserve the existing metropolitan transpor24 tation infrastructure and provide for multimodal 
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1 capacity increases based on regional priorities 

2 and needs; and 

3 ‘‘(E) proposed transportation and transit 

4 enhancement activities. 

5 ‘‘(4) CONSULTATION.— 

6 ‘‘(A) IN GENERAL.—In each metropolitan 

7 area, the metropolitan planning organization 

8 shall consult, as appropriate, with State and 

9 local agencies responsible for land use manage10 ment, natural resources, environmental protec11 tion, conservation, and historic preservation con12 cerning the development of a long-range trans13 portation plan. 

14 ‘‘(B) ISSUES.—The consultation shall in15 volve— 

16 ‘‘(i) comparison of transportation 

17 plans with State conservation plans or with 

18 maps, if available; 

19 ‘‘(ii) comparison of transportation 

20 plans to inventories of natural or historic 

21 resources, if available; or 

22 ‘‘(iii) consideration of areas where 

23 wildlife crossing structures may be needed 

24 to ensure connectivity between wildlife habi25 tat linkage areas. 
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1 ‘‘(5) COORDINATION WITH CLEAN AIR ACT AGEN2 CIES.—In metropolitan areas in nonattainment for 

3 ozone or carbon monoxide under the Clean Air Act 

4 (42 U.S.C. 7401 et seq.), the metropolitan planning 

5 organization shall coordinate the development of a 

6 transportation plan with the process for development 

7 of the transportation control measures of the State 

8 implementation plan required by the Clean Air Act. 

9 ‘‘(6) APPROVAL OF THE TRANSPORTATION

10 PLAN.—Each transportation plan prepared by a met11 ropolitan planning organization shall be— 

12 ‘‘(A) approved by the metropolitan plan13 ning organization; and 

14 ‘‘(B) submitted to the Governor for informa15 tion purposes at such time and in such manner 

16 as the Secretary may reasonably require. 

17 ‘‘(i) PARTICIPATION BY INTERESTED PARTIES.— 

18 ‘‘(1) DEVELOPMENT OF PARTICIPATION PLAN.— 

19 Not less frequently than every 4 years, each metropoli20 tan planning organization shall develop and adopt a 

21 plan for participation in the process for developing 

22 the metropolitan transportation plan and programs 

23 by— 

24 ‘‘(A) citizens; 

25 ‘‘(B) affected public agencies; 
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1 ‘‘(C) representatives of public transpor2 tation employees; 

3 ‘‘(D) freight shippers; 

4 ‘‘(E) providers of freight transportation 

5 services; 

6 ‘‘(F) private providers of transportation; 

7 ‘‘(G) representatives of users of public tran8 sit; 

9 ‘‘(H) representatives of users of pedestrian 

10 walkways and bicycle transportation facilities; 

11 and 

12 ‘‘(I) other interested parties. 

13 ‘‘(2) CONTENTS OF PARTICIPATION PLAN.—The 

14 participation plan— 

15 ‘‘(A) shall be developed in a manner the 

16 Secretary determines to be appropriate; 

17 ‘‘(B) shall be developed in consultation with 

18 all interested parties; and 

19 ‘‘(C) shall provide that all interested parties 

20 have reasonable opportunities to comment on— 

21 ‘‘(i) the process for developing the 

22 transportation plan; and 

23 ‘‘(ii) the contents of the transportation 

24 plan. 
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1 ‘‘(3) METHODS.—The participation plan shall 

2 provide that the metropolitan planning organization 

3 shall, to the maximum extent practicable— 

4 ‘‘(A) hold any public meetings at convenient 

5 and accessible locations and times; 

6 ‘‘(B) employ visualization techniques to de7 scribe plans; and 

8 ‘‘(C) make public information available in 

9 electronically accessible format and means, such 

10 as the World Wide Web. 

11 ‘‘(4) CERTIFICATION.—Before the metropolitan 

12 planning organizations approve a transportation 

13 plan or program, each metropolitan planning organi14 zation shall certify that it has complied with the re15 quirements of the participation plan it has adopted. 

16 ‘‘(j) TRANSPORTATION IMPROVEMENT PROGRAM.— 

17 ‘‘(1) DEVELOPMENT AND UPDATE.— 

18 ‘‘(A) IN GENERAL.—In cooperation with the 

19 State and affected operators of public transpor20 tation, a metropolitan planning organization 

21 designated for a metropolitan planning area 

22 shall develop a transportation improvement pro23 gram for the area. 

24 ‘‘(B) PARTICIPATION.—In developing the 

25 transportation improvement program, the metro-
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1 politan planning organization, in cooperation 

2 with the Governor and any affected operator of 

3 public transportation, shall provide an oppor4 tunity for participation by interested parties in 

5 the development of the program, in accordance 

6 with subsection (i). 

7 ‘‘(C) UPDATES.—The transportation im8 provement program shall be updated not less 

9 than once every 4 years and shall be approved 

10 by the metropolitan planning organization and 

11 the Governor. 

12 ‘‘(D) FUNDING ESTIMATE.—In developing 

13 the transportation improvement program, the 

14 metropolitan planning organization, operators of 

15 public transportation, and the State shall coop16 eratively develop estimates of funds that are rea17 sonably expected to be available to support pro18 gram implementation. 

19 ‘‘(E) PROJECT ADVANCEMENT.—Projects 

20 listed in the transportation improvement pro21 gram may be selected for advancement consistent 

22 with the project selection requirements. 

23 ‘‘(F) MAJOR AMENDMENTS.—Major amend24 ments to the list described in subparagraph (E), 

25 including the addition, deletion, or concept and 
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1 scope change of a regionally significant project, 

2 may not be advanced without— 

3 ‘‘(i) appropriate public involvement; 

4 ‘‘(ii) financial planning; 

5 ‘‘(iii) transportation conformity anal6 yses; and 

7 ‘‘(iv) a finding by the Federal High8 way Administration and Federal Transit 

9 Administration that the amended plan was 

10 produced in a manner consistent with this 

11 section. 

12 ‘‘(2) INCLUDED PROJECTS.— 

13 ‘‘(A) PROJECTS UNDER CHAPTER 1 OF

14 TITLE 23 AND THIS CHAPTER.—A transportation 

15 improvement program developed under this sec16 tion for a metropolitan area shall include the 

17 projects and strategies within the metropolitan 

18 area that are proposed for funding under chapter 

19 1 of title 23 and this chapter. 

20 ‘‘(B) PROJECTS UNDER CHAPTER 2 OF

21 TITLE 23.— 

22 ‘‘(i) REGIONALLY SIGNIFICANT

23 PROJECTS.—Regionally significant projects 

24 proposed for funding under chapter 2 of 

25 title 23 shall be identified individually in 
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1 the metropolitan transportation improve2 ment program. 

3 ‘‘(ii) OTHER PROJECTS.—Projects pro4 posed for funding under chapter 2 of title 

5 23 that are not regionally significant shall 

6 be grouped in 1 line item or identified indi7 vidually in the metropolitan transportation 

8 improvement program. 

9 ‘‘(3) SELECTION OF PROJECTS.— 

10 ‘‘(A) IN GENERAL.—Except as otherwise 

11 provided under subsection (k)(4), the selection of 

12 federally funded projects in metropolitan plan13 ning areas shall be carried out, from the ap14 proved transportation plan— 

15 ‘‘(i) by the State, in the case of projects 

16 under chapter 1 of title 23 or section 5308, 

17 5310, 5311, or 5317 of this title; 

18 ‘‘(ii) by the designated recipient, in the 

19 case of projects under section 5307; and 

20 ‘‘(iii) in cooperation with the metro21 politan planning organization. 

22 ‘‘(B) MODIFICATIONS TO PROJECT PRI23 ORITY.—Notwithstanding any other provision of 

24 law, a project may be advanced from the trans25 portation improvement program in place of an-
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1 other project in the same transportation im2 provement program without the approval of the 

3 Secretary. 

4 ‘‘(4) PUBLICATION REQUIREMENTS.— 

5 ‘‘(A) PUBLICATION OF TRANSPORTATION IM6 PROVEMENT PROGRAM.—A transportation im7 provement program involving Federal participa8 tion shall be published or otherwise made readily 

9 available by the metropolitan planning organiza10 tion for public review, including, to the max11 imum extent practicable, in electronically acces12 sible formats and means, such as the World Wide 

13 Web. 

14 ‘‘(B) PUBLICATION OF ANNUAL LISTINGS OF

15 PROJECTS.—An annual listing of projects, in16 cluding investments in pedestrian walkways and 

17 bicycle transportation facilities, for which Fed18 eral funds have been obligated in the preceding 

19 4 years shall be published or otherwise made 

20 available for public review by the cooperative ef21 fort of the State, transit operator, and the metro22 politan planning organization. This listing shall 

23 be consistent with the funding categories identi24 fied in the transportation improvement program. 
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1 ‘‘(C) RULEMAKING.—Not later than 120 

2 days after the date of enactment of the Federal 

3 Public Transportation Act of 2004, the Secretary 

4 shall issue regulations specifying— 

5 ‘‘(i) the types of data to be included in 

6 the list described in subparagraph (B), in7 cluding— 

8 ‘‘(I) the name, type, purpose, and 

9 geocoded location of each project; 

10 ‘‘(II) the Federal, State, and local 

11 identification numbers assigned to each 

12 project; 

13 ‘‘(III) amounts obligated and ex14 pended on each project, sorted by fund15 ing source and transportation mode, 

16 and the date on which each obligation 

17 was made; and 

18 ‘‘(IV) the status of each project; 

19 and 

20 ‘‘(ii) the media through which the list 

21 described in subparagraph (B) will be made 

22 available to the public, including written 

23 and visual components for each of the 

24 projects listed. 

25 ‘‘(k) TRANSPORTATION MANAGEMENT AREAS.— 
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1 ‘‘(1) REQUIRED IDENTIFICATION.—The Secretary 

2 shall identify each urbanized area with a population 

3 of more than 200,000 individuals as a transportation 

4 management area. 

5 ‘‘(2) TRANSPORTATION PLANS AND PROGRAMS.— 

6 Transportation plans and programs for a metropoli7 tan planning area serving a transportation manage8 ment area shall be based on a continuing and com9 prehensive transportation planning process carried 

10 out by the metropolitan planning organization in co11 operation with the State and transit operators. 

12 ‘‘(3) CONGESTION MANAGEMENT SYSTEM.— 

13 ‘‘(A) IN GENERAL.—The transportation 

14 planning process under this section shall address 

15 congestion management through a process that 

16 provides for effective management and operation, 

17 based on a cooperatively developed and imple18 mented metropolitan-wide strategy, of new and 

19 existing transportation facilities eligible for 

20 funding under title 23 and this chapter through 

21 the use of travel demand reduction and oper22 ational management strategies. 

23 ‘‘(B) PHASE-IN SCHEDULE.—The Secretary 

24 shall establish a phase-in schedule that provides 

25 for full compliance with the requirements of this 
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1 section not later than 1 year after the identifica2 tion of transportation management areas under 

3 paragraph (1). 

4 ‘‘(4) SELECTION OF PROJECTS.— 

5 ‘‘(A) IN GENERAL.—All federally funded 

6 projects carried out within the boundaries of a 

7 metropolitan planning area serving a transpor8 tation management area under title 23 (except 

9 for projects carried out on the National Highway 

10 System and projects carried out under the bridge 

11 program or the interstate maintenance program) 

12 or under this chapter shall be selected for imple13 mentation from the approved transportation im14 provement program by the metropolitan plan15 ning organization designated for the area in con16 sultation with the State and any affected public 

17 transit operator. 

18 ‘‘(B) NATIONAL HIGHWAY SYSTEM

19 PROJECTS.—Projects on the National Highway 

20 System carried out within the boundaries of a 

21 metropolitan planning area serving a transpor22 tation management area and projects carried out 

23 within such boundaries under the bridge pro24 gram or the interstate maintenance program 

25 under title 23 shall be selected for implementa-
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1 tion from the approved transportation improve2 ment program by the State in cooperation with 

3 the metropolitan planning organization des4 ignated for the area. 

5 ‘‘(5) CERTIFICATION.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall— 

7 ‘‘(i) ensure that the metropolitan plan8 ning process of a metropolitan planning or9 ganization serving a transportation man10 agement area is being carried out in ac11 cordance with Federal law; and 

12 ‘‘(ii) subject to subparagraph (B), cer13 tify, not less frequently than once every 4 

14 years in nonattainment and maintenance 

15 areas (as defined under the Clean Air Act) 

16 and not less frequently than once every 5 

17 years in attainment areas (as defined under 

18 such Act), that the requirements of this 

19 paragraph are met with respect to the met20 ropolitan planning process. 

21 ‘‘(B) REQUIREMENTS FOR CERTIFI22 CATION.—The Secretary may make the certifi23 cation under subparagraph (A) if— 

24 ‘‘(i) the transportation planning proc25 ess complies with the requirements of this 
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1 section and all other applicable Federal 

2 law; and 

3 ‘‘(ii) a transportation plan and a 

4 transportation improvement program for 

5 the metropolitan planning area have been 

6 approved by the metropolitan planning or7 ganization and the Governor. 

8 ‘‘(C) PENALTY FOR FAILING TO CERTIFY.— 

9 ‘‘(i) WITHHOLDING PROJECT FUNDS.— 

10 If the metropolitan planning process of a 

11 metropolitan planning organization serving 

12 a transportation management area is not 

13 certified, the Secretary may withhold any 

14 funds otherwise available to the metropoli15 tan planning area for projects funded under 

16 title 23 and this chapter. 

17 ‘‘(ii) RESTORATION OF WITHHELD

18 FUNDS.—Any funds withheld under clause 

19 (i) shall be restored to the metropolitan 

20 planning area when the metropolitan plan21 ning process is certified by the Secretary. 

22 ‘‘(D) REVIEW OF CERTIFICATION.—In mak23 ing a certification under this paragraph, the 

24 Secretary shall provide for public involvement 
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1 appropriate to the metropolitan area under re2 view. 

3 ‘‘(l) ABBREVIATED PLANS FOR CERTAIN AREAS.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), in 

5 the case of a metropolitan area not designated as a 

6 transportation management area under this section, 

7 the Secretary may provide for the development of an 

8 abbreviated transportation plan and transportation 

9 improvement program for the metropolitan planning 

10 area that the Secretary determines is appropriate to 

11 achieve the purposes of this section, after considering 

12 the complexity of transportation problems in the area. 

13 ‘‘(2) NONATTAINMENT AREAS.—The Secretary 

14 may not permit abbreviated plans for a metropolitan 

15 area that is in nonattainment for ozone or carbon 

16 monoxide under the Clean Air Act (42 U.S.C. 7401 

17 et seq.). 

18 ‘‘(m) ADDITIONAL REQUIREMENTS FOR CERTAIN NON19 ATTAINMENT AREAS.— 

20 ‘‘(1) IN GENERAL.—Notwithstanding any other 

21 provisions of title 23 or this chapter, Federal funds 

22 may not be advanced for transportation management 

23 areas classified as nonattainment for ozone or carbon 

24 monoxide pursuant to the Clean Air Act (42 U.S.C. 

25 7401 et seq.) for any highway project that will result 
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1 in a significant increase in carrying capacity for sin2 gle-occupant vehicles unless the project is addressed 

3 through a congestion management process. 

4 ‘‘(2) APPLICABILITY.—This subsection applies to 

5 any nonattainment area within the metropolitan 

6 planning area boundaries determined under sub7 section (d). 

8 ‘‘(n) LIMITATION ON STATUTORY CONSTRUCTION.— 

9 Nothing in this section shall be construed to confer on a 

10 metropolitan planning organization the authority to im11 pose legal requirements on any transportation facility, pro12 vider, or project that is not eligible under title 23 or this 

13 chapter. 

14 ‘‘(o) AVAILABILITY OF FUNDS.—Funds set aside under 

15 section 104(f) of title 23 or section 5308 of this title shall 

16 be available to carry out this section. 

17 ‘‘(p) CONTINUATION OF CURRENT REVIEW PRAC18 TICE.—Any decision by the Secretary concerning a plan or 

19 program described in this section shall not be considered 

20 to be a Federal action subject to review under the National 

21 Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

22 seq.).’’. 

23 SEC. 3006. STATEWIDE TRANSPORTATION PLANNING. 

24 Section 5304 is amended to read as follows: 
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1 ‘‘§ 5304. Statewide transportation planning 

2 ‘‘(a) GENERAL REQUIREMENTS.— 

3 ‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.— 

4 To support the policies described in section 5301(a), 

5 each State shall develop a statewide transportation 

6 plan (referred to in this section as a ‘‘Plan’’) and a 

7 statewide transportation improvement program (re8 ferred to in this section as a ‘‘Program’’) for all areas 

9 of the State subject to section 5303. 

10 ‘‘(2) CONTENTS.—The Plan and the Program de11 veloped for each State shall provide for the develop12 ment and integrated management and operation of 

13 transportation systems and facilities (including pe14 destrian walkways and bicycle transportation facili15 ties) that will function as an intermodal transpor16 tation system for the State and an integral part of 

17 an intermodal transportation system for the United 

18 States. 

19 ‘‘(3) PROCESS OF DEVELOPMENT.—The process 

20 for developing the Plan and the Program shall— 

21 ‘‘(A) provide for the consideration of all 

22 modes of transportation and the policies de23 scribed in section 5301(a); and 

24 ‘‘(B) be continuing, cooperative, and com25 prehensive to the degree appropriate, based on 
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1 the complexity of the transportation problems to 

2 be addressed. 

3 ‘‘(b) COORDINATION WITH METROPOLITAN PLANNING; 

4 STATE IMPLEMENTATION PLAN.—Each State shall— 

5 ‘‘(1) coordinate planning under this section 

6 with— 

7 ‘‘(A) the transportation planning activities 

8 under section 5303 for metropolitan areas of the 

9 State; and 

10 ‘‘(B) other related statewide planning ac11 tivities, including trade and economic develop12 ment and related multistate planning efforts; 

13 and 

14 ‘‘(2) develop the transportation portion of the 

15 State implementation plan, as required by the Clean 

16 Air Act (42 U.S.C. 7401 et seq.). 

17 ‘‘(c) INTERSTATE AGREEMENTS.—States may enter 

18 into agreements or compacts with other States for coopera19 tive efforts and mutual assistance in support of activities 

20 authorized under this section related to interstate areas and 

21 localities in the States and establishing authorities the 

22 States consider desirable for making the agreements and 

23 compacts effective. 

24 ‘‘(d) SCOPE OF PLANNING PROCESS.— 
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1 ‘‘(1) IN GENERAL.—Each State shall carry out a 

2 statewide transportation planning process that pro3 vides for the consideration of projects, strategies, and 

4 implementing projects and services that will— 

5 ‘‘(A) support the economic vitality of the 

6 United States, the States, nonmetropolitan areas, 

7 and metropolitan areas, especially by enabling 

8 global competitiveness, productivity, and effi9 ciency; 

10 ‘‘(B) increase the safety of the transpor11 tation system for motorized and nonmotorized 

12 users; 

13 ‘‘(C) increase the security of the transpor14 tation system for motorized and nonmotorized 

15 users; 

16 ‘‘(D) increase the accessibility and mobility 

17 of people and freight; 

18 ‘‘(E) protect and enhance the environment 

19 (including the protection of habitat, water qual20 ity, and agricultural and forest land, while 

21 minimizing invasive species), promote energy 

22 conservation, promote consistency between trans23 portation improvements and State and local 

24 land use planning and economic development 

25 patterns, and improve the quality of life (includ-
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1 ing minimizing adverse health effects from mo2 bile source air pollution and promoting the link3 age of the transportation and development goals 

4 of the State); 

5 ‘‘(F) enhance the integration and 

6 connectivity of the transportation system, across 

7 and between modes throughout the State, for peo8 ple and freight; 

9 ‘‘(G) promote efficient system management 

10 and operation; and 

11 ‘‘(H) emphasize the preservation and effi12 cient use of the existing transportation system. 

13 ‘‘(2) SELECTION OF PROJECTS AND STRATE14 GIES.—After soliciting and considering any relevant 

15 public comments, the State shall determine which of 

16 the projects and strategies described in paragraph (1) 

17 are most appropriate. 

18 ‘‘(3) MITIGATION ACTIVITIES.— 

19 ‘‘(A) IN GENERAL.—A transportation plan 

20 under this subsection shall include a discussion 

21 of— 

22 ‘‘(i) types of potential habitat, 

23 hydrological, and environmental mitigation 

24 activities that may assist in compensating 
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1 for loss of habitat, wetland, and other envi2 ronmental functions; and 

3 ‘‘(ii) potential areas to carry out these 

4 activities, including a discussion of areas 

5 that may have the greatest potential to re6 store and maintain the habitat types and 

7 hydrological or environmental functions af8 fected by the plan. 

9 ‘‘(B) CONSULTATION.—The discussion de10 scribed in subparagraph (A) shall be developed 

11 in consultation with Federal and State tribal 

12 wildlife, land management, and regulatory agen13 cies. 

14 ‘‘(4) FAILURE TO CONSIDER FACTORS.—The fail15 ure to consider any factor described in paragraph (1) 

16 shall not be reviewable by any court under title 23, 

17 this title, subchapter II of chapter 5 of title 5, or 

18 chapter 7 of title 5 in any matter affecting a Plan, 

19 a Program, a project or strategy, or the certification 

20 of a planning process. 

21 ‘‘(e) ADDITIONAL REQUIREMENTS.—In carrying out 

22 planning under this section, each State shall consider— 

23 ‘‘(1) with respect to nonmetropolitan areas, the 

24 concerns of affected local officials with responsibility 

25 for transportation; 
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1 ‘‘(2) the concerns of Indian tribal governments 

2 and Federal land management agencies that have ju3 risdiction over land within the boundaries of the 

4 State; and 

5 ‘‘(3) coordination of Plans, Programs, and plan6 ning activities with related planning activities being 

7 carried out outside of metropolitan planning areas 

8 and between States. 

9 ‘‘(f) STATEWIDE TRANSPORTATION PLAN.— 

10 ‘‘(1) DEVELOPMENT.—Each State shall develop a 

11 Plan, with a minimum 20-year forecast period for all 

12 areas of the State, that provides for the development 

13 and implementation of the intermodal transportation 

14 system of the State. 

15 ‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

16 ‘‘(A) METROPOLITAN PLANNING AREAS.— 

17 The Plan shall be developed for each metropoli18 tan planning area in the State in cooperation 

19 with the metropolitan planning organization 

20 designated for the metropolitan planning area 

21 under section 5303. 

22 ‘‘(B) NONMETROPOLITAN AREAS.—With re23 spect to nonmetropolitan areas, the statewide 

24 transportation plan shall be developed in con25 sultation with affected nonmetropolitan officials 
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1 with responsibility for transportation. The con2 sultation process shall not require the review or 

3 approval of the Secretary. 

4 ‘‘(C) INDIAN TRIBAL AREAS.—With respect 

5 to each area of the State under the jurisdiction 

6 of an Indian tribal government, the Plan shall 

7 be developed in consultation with the tribal gov8 ernment and the Secretary of the Interior. 

9 ‘‘(D) CONSULTATION, COMPARISON, AND

10 CONSIDERATION.— 

11 ‘‘(i) IN GENERAL.—The Plan shall be 

12 developed, as appropriate, in consultation 

13 with State and local agencies responsible 

14 for— 

15 ‘‘(I) land use management; 

16 ‘‘(II) natural resources; 

17 ‘‘(III) environmental protection; 

18 ‘‘(IV) conservation; and 

19 ‘‘(V) historic preservation. 

20 ‘‘(ii) COMPARISON AND CONSIDER21 ATION.—Consultation under clause (i) shall 

22 involve— 

23 ‘‘(I) comparison of transportation 

24 plans to State conservation plans or 

25 maps, if available; 
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1 ‘‘(II) comparison of transpor2 tation plans to inventories of natural 

3 or historic resources, if available; or 

4 ‘‘(III) consideration of areas 

5 where wildlife crossing structures may 

6 be needed to ensure connectivity be7 tween wildlife habitat linkage areas. 

8 ‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 

9 In developing the Plan, the State shall— 

10 ‘‘(A) provide citizens, affected public agen11 cies, representatives of public transportation em12 ployees, freight shippers, private providers of 

13 transportation, representatives of users of public 

14 transportation, representatives of users of pedes15 trian walkways and bicycle transportation fa16 cilities, providers of freight transportation serv17 ices, and other interested parties with a reason18 able opportunity to comment on the proposed 

19 Plan; and 

20 ‘‘(B) to the maximum extent practicable— 

21 ‘‘(i) hold any public meetings at con22 venient and accessible locations and times; 

23 ‘‘(ii) employ visualization techniques 

24 to describe plans; and 
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1 ‘‘(iii) make public information avail2 able in electronically accessible format and 

3 means, such as the World Wide Web. 

4 ‘‘(4) MITIGATION ACTIVITIES.— 

5 ‘‘(A) IN GENERAL.—A Plan shall include a 

6 discussion of— 

7 ‘‘(i) types of potential habitat, 

8 hydrological, and environmental mitigation 

9 activities that may assist in compensating 

10 for loss of habitat, wetlands, and other envi11 ronmental functions; and 

12 ‘‘(ii) potential areas to carry out these 

13 activities, including a discussion of areas 

14 that may have the greatest potential to re15 store and maintain the habitat types and 

16 hydrological or environmental functions af17 fected by the plan. 

18 ‘‘(B) CONSULTATION.—The discussion de19 scribed in subparagraph (A) shall be developed 

20 in consultation with Federal and State tribal 

21 wildlife, land management, and regulatory agen22 cies. 

23 ‘‘(5) TRANSPORTATION STRATEGIES.—A Plan 

24 shall identify transportation strategies necessary to 

25 efficiently serve the mobility needs of people. 
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1 ‘‘(6) FINANCIAL PLAN.—The Plan may include a 

2 financial plan that— 

3 ‘‘(A) demonstrates how the adopted Plan 

4 can be implemented; 

5 ‘‘(B) indicates resources from public and 

6 private sources that are reasonably expected to be 

7 made available to carry out the Plan; 

8 ‘‘(C) recommends any additional financing 

9 strategies for needed projects and programs; and 

10 ‘‘(D) may include, for illustrative purposes, 

11 additional projects that would be included in the 

12 adopted Plan if reasonable additional resources 

13 beyond those identified in the financial plan 

14 were available. 

15 ‘‘(7) SELECTION OF PROJECTS FROM ILLUS16 TRATIVE LIST.—A State shall not be required to select 

17 any project from the illustrative list of additional 

18 projects described in paragraph (6)(D). 

19 ‘‘(8) EXISTING SYSTEM.—The Plan should in20 clude capital, operations and management strategies, 

21 investments, procedures, and other measures to ensure 

22 the preservation and most efficient use of the existing 

23 transportation system. 

24 ‘‘(9) PUBLICATION OF LONG-RANGE TRANSPOR25 TATION PLANS.—Each Plan prepared by a State shall 
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1 be published or otherwise made available, including, 

2 to the maximum extent practicable, in electronically 

3 accessible formats and means, such as the World Wide 

4 Web. 

5 ‘‘(g) STATEWIDE TRANSPORTATION IMPROVEMENT

6 PROGRAM.— 

7 ‘‘(1) DEVELOPMENT.—Each State shall develop a 

8 Program for all areas of the State. 

9 ‘‘(2) CONSULTATION WITH GOVERNMENTS.— 

10 ‘‘(A) METROPOLITAN PLANNING AREAS.— 

11 With respect to each metropolitan planning area 

12 in the State, the Program shall be developed in 

13 cooperation with the metropolitan planning or14 ganization designated for the metropolitan plan15 ning area under section 5303. 

16 ‘‘(B) NONMETROPOLITAN AREAS.—With re17 spect to each nonmetropolitan area in the State, 

18 the Program shall be developed in consultation 

19 with affected nonmetropolitan local officials with 

20 responsibility for transportation. The consulta21 tion process shall not require the review or ap22 proval of the Secretary. 

23 ‘‘(C) INDIAN TRIBAL AREAS.—With respect 

24 to each area of the State under the jurisdiction 

25 of an Indian tribal government, the Program 
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1 shall be developed in consultation with the tribal 

2 government and the Secretary of the Interior. 

3 ‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 

4 In developing the Program, the State shall provide 

5 citizens, affected public agencies, representatives of 

6 public transportation employees, freight shippers, pri7 vate providers of transportation, providers of freight 

8 transportation services, representatives of users of 

9 public transit, representatives of users of pedestrian 

10 walkways and bicycle transportation facilities, and 

11 other interested parties with a reasonable opportunity 

12 to comment on the proposed Program. 

13 ‘‘(4) INCLUDED PROJECTS.— 

14 ‘‘(A) IN GENERAL.—A Program developed 

15 under this subsection for a State shall include 

16 federally supported surface transportation ex17 penditures within the boundaries of the State. 

18 ‘‘(B) LISTING OF PROJECTS.— 

19 ‘‘(i) IN GENERAL.—The Program shall 

20 cover a minimum of 4 years, identify 

21 projects by year, be fiscally constrained by 

22 year, and be updated not less than once 

23 every 4 years. 

24 ‘‘(ii) PUBLICATION.—An annual list25 ing of projects for which funds have been ob-
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1 ligated in the preceding 4 years in each 

2 metropolitan planning area shall be pub3 lished or otherwise made available by the 

4 cooperative effort of the State, transit oper5 ator, and the metropolitan planning organi6 zation for public review. The listing shall be 

7 consistent with the funding categories iden8 tified in each metropolitan transportation 

9 improvement program. 

10 ‘‘(C) INDIVIDUAL IDENTIFICATION.— 

11 ‘‘(i) REGIONALLY SIGNIFICANT

12 PROJECTS.—Regionally significant projects 

13 proposed for funding under chapter 2 of 

14 title 23 shall be identified individually in 

15 the transportation improvement program. 

16 ‘‘(ii) OTHER PROJECTS.—Projects pro17 posed for funding under chapter 2 of title 

18 23 that are not determined to be regionally 

19 significant shall be grouped in 1 line item 

20 or identified individually. 

21 ‘‘(D) CONSISTENCY WITH STATEWIDE

22 TRANSPORTATION PLAN.—Each project included 

23 in the list described in subparagraph (B) shall 

24 be— 
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1 ‘‘(i) consistent with the Plan developed 

2 under this section for the State; 

3 ‘‘(ii) identical to the project or phase of 

4 the project as described in each year of the 

5 approved metropolitan transportation im6 provement program; and 

7 ‘‘(iii) in conformance with the applica8 ble State air quality implementation plan 

9 developed under the Clean Air Act (42 

10 U.S.C. 7401 et seq.), if the project is carried 

11 out in an area designated as nonattainment 

12 for ozone or carbon monoxide under that 

13 Act. 

14 ‘‘(E) REQUIREMENT OF ANTICIPATED FULL

15 FUNDING.—The Program shall not include a 

16 project, or an identified phase of a project, unless 

17 full funding can reasonably be anticipated to be 

18 available for the project within the time period 

19 contemplated for completion of the project. 

20 ‘‘(F) FINANCIAL PLAN.—The Program may 

21 include a financial plan that— 

22 ‘‘(i) demonstrates how the approved 

23 Program can be implemented; 

24 ‘‘(ii) indicates resources from public 

25 and private sources that are reasonably ex-
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1 pected to be made available to carry out the 

2 Program; 

3 ‘‘(iii) recommends any additional fi4 nancing strategies for needed projects and 

5 programs; and 

6 ‘‘(iv) may include, for illustrative pur7 poses, additional projects that would be in8 cluded in the adopted transportation plan if 

9 reasonable additional resources beyond those 

10 identified in the financial plan were avail11 able. 

12 ‘‘(G) SELECTION OF PROJECTS FROM ILLUS13 TRATIVE LIST.— 

14 ‘‘(i) NO REQUIRED SELECTION.—Not15 withstanding subparagraph (F), a State 

16 shall not be required to select any project 

17 from the illustrative list of additional 

18 projects described in subparagraph (F)(iv). 

19 ‘‘(ii) REQUIRED APPROVAL BY THE

20 SECRETARY.—A State shall not include any 

21 project from the illustrative list of addi22 tional projects described in subparagraph 

23 (F)(iv) in an approved Program without 

24 the approval of the Secretary. 
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1 ‘‘(H) PRIORITIES.—The Program shall re2 flect the priorities for programming and expend3 itures of funds, including transportation and 

4 transit enhancement activities, required by title 

5 23 and this chapter, and transportation control 

6 measures included in the State’s air quality im7 plementation plan. 

8 ‘‘(5) PROJECT SELECTION FOR AREAS WITH

9 FEWER THAN 50,000 INDIVIDUALS.— 

10 ‘‘(A) IN GENERAL.—Each State, in coopera11 tion with the affected nonmetropolitan local offi12 cials with responsibility for transportation, shall 

13 select projects to be carried out in areas with 

14 fewer than 50,000 individuals from the approved 

15 Program (excluding projects carried out under 

16 the National Highway System, the bridge pro17 gram, or the interstate maintenance program 

18 under title 23 or sections 5310 and 5311 of this 

19 title). 

20 ‘‘(B) CERTAIN PROGRAMS.—Each State, in 

21 consultation with the affected nonmetropolitan 

22 local officials with responsibility for transpor23 tation, shall select, from the approved Program, 

24 projects to be carried out in areas with fewer 

25 than 50,000 individuals under the National 
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1 Highway System, the bridge program, or the 

2 Interstate maintenance program under title 23 

3 or under sections 5310 and 5311 of this title. 

4 ‘‘(6) STATEWIDE TRANSPORTATION IMPROVE5 MENT PROGRAM APPROVAL.—A Program developed 

6 under this subsection shall be reviewed and based on 

7 a current planning finding approved by the Secretary 

8 not less frequently than once every 4 years. 

9 ‘‘(7) PLANNING FINDING.—Not less frequently 

10 than once every 4 years, the Secretary shall determine 

11 whether the transportation planning process through 

12 which Plans and Programs are developed are con13 sistent with this section and section 5303. 

14 ‘‘(8) MODIFICATIONS TO PROJECT PRIORITY.— 

15 Notwithstanding any other provision of law, a project 

16 included in the approved Program may be advanced 

17 in place of another project in the program without the 

18 approval of the Secretary. 

19 ‘‘(h) FUNDING.—Funds set aside pursuant to section 

20 104(i) of title 23 and 5308 of this title shall be available 

21 to carry out this section. 

22 ‘‘(i) TREATMENT OF CERTAIN STATE LAWS AS CON23 GESTION MANAGEMENT SYSTEMS.—For purposes of this 

24 section and section 5303, State laws, rules, or regulations 

25 pertaining to congestion management systems or programs 
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1 may constitute the congestion management system under 

2 section 5303(i)(3) if the Secretary determines that the State 

3 laws, rules, or regulations are consistent with, and fulfill 

4 the intent of, the purposes of section 5303. 

5 ‘‘(j) CONTINUATION OF CURRENT REVIEW PRAC6 TICE.—Any decision by the Secretary under this section, 

7 regarding a metropolitan or statewide transportation plan 

8 or the Program, shall not be considered to be a Federal ac9 tion subject to review under the National Environmental 

10 Policy Act of 1969 (42 U.S.C. 4321 et seq.).’’. 

11 SEC. 3007. TRANSPORTATION MANAGEMENT AREAS. 

12 Section 5305 is repealed. 

13 SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION. 

14 Section 5306 is amended— 

15 (1) in subsection (a)— 

16 (A) by striking ‘‘5305 of this title’’ and in17 serting ‘‘5308’’; and 

18 (B) by inserting ‘‘, as determined by local 

19 policies, criteria, and decision making,’’ after 

20 ‘‘feasible’’; 

21 (2) in subsection (b) by striking ‘‘5303–5305 of 

22 this title’’ and inserting ‘‘5303, 5304, and 5308’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(c) REGULATIONS.—Not later than 1 year after the 

25 date of enactment of the Federal Public Transportation Act 
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1 of 2004, the Secretary shall issue regulations describing how 

2 the requirements under this chapter relating to subsection 

3 (a) shall be enforced.’’. 

4 SEC. 3009. URBANIZED AREA FORMULA GRANTS. 

5 (a) TECHNICAL AMENDMENTS.—Section 5307 is 

6 amended— 

7 (1) by striking subsections (h), (j) and (k); and 

8 (2) by redesignating subsections (i), (l), (m), and 

9 (n) as subsections (h), (i), (j), and (k), respectively. 

10 (b) DEFINITIONS.—Section 5307(a) is amended— 

11 (1) by amending paragraph (2)(A) to read as 

12 follows: 

13 ‘‘(A) an entity designated, in accordance 

14 with the planning process under sections 5303, 

15 5304, and 5306, by the chief executive officer of 

16 a State, responsible local officials, and publicly 

17 owned operators of public transportation, to re18 ceive and apportion amounts under sections 

19 5336 and 5337 that are attributable to transpor20 tation management areas designated under sec21 tion 5303; or’’; and 

22 (2) by adding at the end the following: 

23 ‘‘(3) SUBRECIPIENT.—The term ‘subrecipient’ 

24 means a State or local governmental authority, a 

25 nonprofit organization, or a private operator of pub-
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1 lic transportation service that may receive a Federal 

2 transit program grant indirectly through a recipient, 

3 rather than directly from the Federal Government.’’. 

4 (c) GENERAL AUTHORITY.—Section 5307(b) is amend5 ed— 

6 (1) by amending paragraph (1) to read as fol7 lows: 

8 ‘‘(1) IN GENERAL.—The Secretary of Transpor9 tation may award grants under this section for— 

10 ‘‘(A) capital projects, including associated 

11 capital maintenance items; 

12 ‘‘(B) planning, including mobility manage13 ment; 

14 ‘‘(C) transit enhancements; 

15 ‘‘(D) operating costs of equipment and fa16 cilities for use in public transportation in an ur17 banized area with a population of less than 

18 200,000; and 

19 ‘‘(E) operating costs of equipment and fa20 cilities for use in public transportation in a por21 tion or portions of an urbanized area with a 

22 population of at least 200,000, but not more 

23 than 225,000, if— 

24 ‘‘(i) the urbanized area includes parts 

25 of more than 1 State; 
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1 ‘‘(ii) the portion of the urbanized area 

2 includes only 1 State; 

3 ‘‘(iii) the population of the portion of 

4 the urbanized area is less than 30,000; and 

5 ‘‘(iv) the grants will not be used to 

6 provide public transportation outside of the 

7 portion of the urbanized area.’’; 

8 (2) by amending paragraph (2) to read as fol9 lows: 

10 ‘‘(2) SPECIAL RULE FOR FISCAL YEARS 2004

11 THROUGH 2006— 

12 ‘‘(A) INCREASED FLEXIBILITY.—The Sec13 retary may award grants under this section, 

14 from funds made available to carry out this sec15 tion for each of the fiscal years 2004 through 

16 2006, to finance the operating cost of equipment 

17 and facilities for use in mass transportation in 

18 an urbanized area with a population of at least 

19 200,000, as determined by the 2000 decennial 

20 census of population if— 

21 ‘‘(i) the urbanized area had a popu22 lation of less than 200,000, as determined 

23 by the 1990 decennial census of population; 

24 ‘‘(ii) a portion of the urbanized area 

25 was a separate urbanized area with a popu-
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1 lation of less than 200,000, as determined 

2 by the 1990 decennial census of population; 

3 ‘‘(iii) the area was not designated as 

4 an urbanized area, as determined by the 

5 1990 decennial census of population; or 

6 ‘‘(iv) a portion of the area was not des7 ignated as an urbanized area, as deter8 mined by the 1990 decennial census, and re9 ceived assistance under section 5311 in fis10 cal year 2002. 

11 ‘‘(B) MAXIMUM AMOUNTS IN FISCAL YEAR

12 2004.—In fiscal year 2004— 

13 ‘‘(i) amounts made available to any 

14 urbanized area under clause (i) or (ii) of 

15 subparagraph (A) shall be not more than 

16 the amount apportioned in fiscal year 2002 

17 to the urbanized area with a population of 

18 less than 200,000, as determined in the 

19 1990 decennial census of population; 

20 ‘‘(ii) amounts made available to any 

21 urbanized area under subparagraph (A)(iii) 

22 shall be not more than the amount appor23 tioned to the urbanized area under this sec24 tion for fiscal year 2003; and 
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1 ‘‘(iii) each portion of any area not des2 ignated as an urbanized area, as deter3 mined by the 1990 decennial census, and el4 igible to receive funds under subparagraph 

5 (A)(iv), shall receive an amount of funds to 

6 carry out this section that is not less than 

7 the amount the portion of the area received 

8 under section 5311 for fiscal year 2002. 

9 ‘‘(C) MAXIMUM AMOUNTS IN FISCAL YEAR

10 2005.—In fiscal year 2005— 

11 ‘‘(i) amounts made available to any 

12 urbanized area under clause (i) or (ii) of 

13 subparagraph (A) shall be not more than 50 

14 percent of the amount apportioned in fiscal 

15 year 2002 to the urbanized area with a 

16 population of less than 200,000, as deter17 mined in the 1990 decennial census of pop18 ulation; 

19 ‘‘(ii) amounts made available to any 

20 urbanized area under subparagraph (A)(iii) 

21 shall be not more than 50 percent of the 

22 amount apportioned to the urbanized area 

23 under this section for fiscal year 2003; and 

24 ‘‘(iii) each portion of any area not des25 ignated as an urbanized area, as deter-
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1 mined by the 1990 decennial census, and el2 igible to receive funds under subparagraph 

3 (A)(iv), shall receive an amount of funds to 

4 carry out this section that is not less 50 

5 percent of the amount the portion of the 

6 area received under section 5311 for fiscal 

7 year 2002. 

8 ‘‘(D) MAXIMUM AMOUNTS IN FISCAL YEAR

9 2006.—In fiscal year 2006— 

10 ‘‘(i) amounts made available to any 

11 urbanized area under clause (i) or (ii) of 

12 subparagraph (A) shall be not more than 25 

13 percent of the amount apportioned in fiscal 

14 year 2002 to the urbanized area with a 

15 population of less than 200,000, as deter16 mined in the 1990 decennial census of pop17 ulation; 

18 ‘‘(ii) amounts made available to any 

19 urbanized area under subparagraph (A)(iii) 

20 shall be not more than 25 percent of the 

21 amount apportioned to the urbanized area 

22 under this section for fiscal year 2003; and 

23 ‘‘(iii) each portion of any area not des24 ignated as an urbanized area, as deter25 mined by the 1990 decennial census, and el-
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1 igible to receive funds under subparagraph 

2 (A)(iv), shall receive an amount of funds to 

3 carry out this section that is not less than 

4 25 percent of the amount the portion of the 

5 area received under section 5311 in fiscal 

6 year 2002.’’; and 

7 (3) by striking paragraph (4). 

8 (d) PUBLIC PARTICIPATION REQUIREMENTS.—Section 

9 5307(c)(5) is amended by striking ‘‘section 5336’’ and in10 serting ‘‘sections 5336 and 5337’’. 

11 (e) GRANT RECIPIENT REQUIREMENTS.—Section 

12 5307(d)(1) is amended— 

13 (1) in subparagraph (A), by inserting ‘‘, includ14 ing safety and security aspects of the program’’ after 

15 ‘‘program’’; 

16 (2) in subparagraph (E), by striking ‘‘section’’ 

17 and all that follows and inserting ‘‘section, the recipi18 ent will comply with sections 5323 and 5325;’’; 

19 (3) in subparagraph (H), by striking ‘‘sections 

20 5301(a) and (d), 5303-5306, and 5310(a)-(d) of this 

21 title’’ and inserting ‘‘subsections (a) and (d) of section 

22 5301 and sections 5303 through 5306’’; 

23 (4) in subparagraph (I) by striking ‘‘and’’ at the 

24 end; 
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1 (5) in subparagraph (J), by striking the period 

2 at the end and inserting ‘‘; and’’; and 

3 (6) by adding at the end the following: 

4 ‘‘(K) if located in an urbanized area with 

5 a population of at least 200,000, will expend not 

6 less than 1 percent of the amount the recipient 

7 receives each fiscal year under this section for 

8 transit enhancement activities described in sec9 tion 5302(a)(15).’’. 

10 (f) GOVERNMENT’S SHARE OF COSTS.—Section 

11 5307(e) is amended— 

12 (1) by striking the first sentence and inserting 

13 the following: 

14 ‘‘(1) CAPITAL PROJECTS.—A grant for a capital 

15 project under this section shall cover 80 percent of the 

16 net project cost.’’; 

17 (2) by striking ‘‘A grant for operating expenses’’ 

18 and inserting the following: 

19 ‘‘(2) OPERATING EXPENSES.—A grant for oper20 ating expenses’’; 

21 (3) by striking the fourth sentence and inserting 

22 the following: 

23 ‘‘(3) REMAINING COSTS.—The remainder of the 

24 net project cost shall be provided in cash from non25 Federal sources or revenues derived from the sale of 
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1 advertising and concessions and amounts received 

2 under a service agreement with a State or local social 

3 service agency or a private social service organiza4 tion.’’; and 

5 (4) by adding at the end the following: ‘‘The pro6 hibitions on the use of funds for matching require7 ments under section 403(a)(5)(C)(vii) of the Social 

8 Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not 

9 apply to the remainder.’’. 

10 (g) UNDERTAKING PROJECTS IN ADVANCE.—Section 

11 5307(g) is amended by striking paragraph (4). 

12 (h) RELATIONSHIP TO OTHER LAWS.—Section 

13 5307(k), as redesignated, is amended to read as follows: 

14 ‘‘(k) RELATIONSHIP TO OTHER LAWS.— 

15 ‘‘(1) APPLICABLE PROVISIONS.—Sections 5301, 

16 5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 

17 5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335 

18 apply to this section and to any grant made under 

19 this section. 

20 ‘‘(2) INAPPLICABLE PROVISIONS.— 

21 ‘‘(A) IN GENERAL.—Except as provided 

22 under this section, no other provision of this 

23 chapter applies to this section or to a grant 

24 made under this section. 
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1 ‘‘(B) TITLE 5.—The provision of assistance 

2 under this chapter shall not be construed as 

3 bringing within the application of chapter 15 of 

4 title 5, any nonsupervisory employee of a public 

5 transportation system (or any other agency or 

6 entity performing related functions) to which 

7 such chapter is otherwise inapplicable.’’. 

8 SEC. 3010. PLANNING PROGRAMS. 

9 (a) IN GENERAL.—Section 5308 is amended to read 

10 as follows: 

11 ‘‘§ 5308. Planning programs 

12 ‘‘(a) GRANTS AUTHORIZED.—Under criteria estab13 lished by the Secretary, the Secretary may award grants 

14 to States, authorities of the States, metropolitan planning 

15 organizations, and local governmental authorities, make 

16 agreements with other departments, agencies, or instrumen17 talities of the Government, or enter into contracts with pri18 vate nonprofit or for-profit entities to— 

19 ‘‘(1) develop transportation plans and programs; 

20 ‘‘(2) plan, engineer, design, and evaluate a pub21 lic transportation project; or 

22 ‘‘(3) conduct technical studies relating to public 

23 transportation, including— 
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1 ‘‘(A) studies related to management, plan2 ning, operations, capital requirements, and eco3 nomic feasibility; 

4 ‘‘(B) evaluations of previously financed 

5 projects; 

6 ‘‘(C) peer reviews and exchanges of technical 

7 data, information, assistance, and related activi8 ties in support of planning and environmental 

9 analyses among metropolitan planning organiza10 tions and other transportation planners; and 

11 ‘‘(D) other similar and related activities 

12 preliminary to, and in preparation for, con13 structing, acquiring, or improving the operation 

14 of facilities and equipment. 

15 ‘‘(b) PURPOSE.—To the extent practicable, the Sec16 retary shall ensure that amounts appropriated pursuant to 

17 section 5338 to carry out this section and sections 5303, 

18 5304, and 5306 are used to support balanced and com19 prehensive transportation planning that considers the rela20 tionships among land use and all transportation modes, 

21 without regard to the programmatic source of the planning 

22 amounts. 

23 ‘‘(c) METROPOLITAN PLANNING PROGRAM.— 

24 ‘‘(1) ALLOCATIONS TO STATES.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall al2 locate 80 percent of the amount made available 

3 under subsection (g)(3)(A) to States to carry out 

4 sections 5303 and 5306 in a ratio equal to the 

5 population in urbanized areas in each State, di6 vided by the total population in urbanized areas 

7 in all States, as shown by the latest available de8 cennial census of population. 

9 ‘‘(B) MINIMUM ALLOCATION.—Each State 

10 shall receive not less than 0.5 percent of the total 

11 amount allocated under this paragraph. 

12 ‘‘(2) AVAILABILITY OF FUNDS.—A State receiv13 ing an allocation under paragraph (1) shall promptly 

14 distribute such funds to metropolitan planning orga15 nizations in the State under a formula— 

16 ‘‘(A) developed by the State in cooperation 

17 with the metropolitan planning organizations; 

18 ‘‘(B) approved by the Secretary of Trans19 portation; 

20 ‘‘(C) that considers population in urbanized 

21 areas; and 

22 ‘‘(D) that provides an appropriate distribu23 tion for urbanized areas to carry out the cooper24 ative processes described in this section. 

25 ‘‘(3) SUPPLEMENTAL ALLOCATIONS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall al2 locate 20 percent of the amount made available 

3 under subsection (g)(3)(A) to States to supple4 ment allocations made under paragraph (1) for 

5 metropolitan planning organizations. 

6 ‘‘(B) ALLOCATION FORMULA.—Amounts 

7 under this paragraph shall be allocated under a 

8 formula that reflects the additional cost of car9 rying out planning, programming, and project 

10 selection responsibilities in complex metropolitan 

11 planning areas under sections 5303, 5304, and 

12 5306. 

13 ‘‘(d) STATE PLANNING AND RESEARCH PROGRAM.— 

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

15 amounts made available pursuant to subsection 

16 (g)(3)(B) to States for grants and contracts to carry 

17 out sections 5304, 5306, 5315, and 5322 so that each 

18 State receives an amount equal to the ratio of the 

19 population in urbanized areas in that State, divided 

20 by the total population in urbanized areas in all 

21 States, as shown by the latest available decennial cen22 sus. 

23 ‘‘(2) MINIMUM ALLOCATION.—Each State shall 

24 receive not less than 0.5 percent of the amount allo25 cated under this subsection. 
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1 ‘‘(3) REALLOCATION.—A State may authorize 

2 part of the amount made available under this sub3 section to be used to supplement amounts available 

4 under subsection (c). 

5 ‘‘(e) PLANNING CAPACITY BUILDING PROGRAM.— 

6 ‘‘(1) ESTABLISHMENT.—The Secretary shall es7 tablish a Planning Capacity Building Program (re8 ferred to in this subsection as the ‘‘Program’’) to sup9 port and fund innovative practices and enhancements 

10 in transportation planning. 

11 ‘‘(2) PURPOSE.—The purpose of the Program 

12 shall be to promote activities that support and 

13 strengthen the planning processes required under this 

14 section and sections 5303 and 5304. 

15 ‘‘(3) ADMINISTRATION.—The Program shall be 

16 administered by the Federal Transit Administration 

17 in cooperation with the Federal Highway Adminis18 tration. 

19 ‘‘(4) USE OF FUNDS.— 

20 ‘‘(A) IN GENERAL.—Appropriations author21 ized under subsection (g)(1) to carry out this 

22 subsection may be used— 

23 ‘‘(i) to provide incentive grants to 

24 States, metropolitan planning organiza-
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1 tions, and public transportation operators; 

2 and 

3 ‘‘(ii) to conduct research, disseminate 

4 information, and provide technical assist5 ance. 

6 ‘‘(B) GRANTS, CONTRACTS, COOPERATIVE

7 AGREEMENTS.—In carrying out the activities de8 scribed in subparagraph (A), the Secretary 

9 may— 

10 ‘‘(i) expend appropriated funds di11 rectly; or 

12 ‘‘(ii) award grants to, or enter into 

13 contracts, cooperative agreements, and other 

14 transactions with, a Federal agency, State 

15 agency, local governmental authority, asso16 ciation, nonprofit or for-profit entity, or in17 stitution of higher education. 

18 ‘‘(f) GOVERNMENT’S SHARE OF COSTS.—Amounts 

19 made available to carry out subsections (c), (d), and (e) 

20 may not exceed 80 percent of the costs of the activity unless 

21 the Secretary of Transportation determines that it is in the 

22 interest of the Government not to require State or local 

23 matching funds. 
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1 ‘‘(g) ALLOCATION OF FUNDS.—Of the amounts made 

2 available under section 5338(b)(2)(B) for fiscal year 2005 

3 and each fiscal year thereafter to carry out this section— 

4 ‘‘(1) $5,000,000 shall be allocated for the Plan5 ning Capacity Building Program established under 

6 subsection (e); 

7 ‘‘(2) $20,000,000 shall be allocated for grants 

8 under subsection (a)(2) for alternatives analyses re9 quired by section 5309(e)(2)(A); and 

10 ‘‘(3) of the remaining amount— 

11 ‘‘(A) 82.72 percent shall be allocated for the 

12 metropolitan planning program described in 

13 subsection (d); and 

14 ‘‘(B) 17.28 percent shall be allocated to 

15 carry out subsection (b). 

16 ‘‘(h) REALLOCATIONS.—Any amount allocated under 

17 this section that has not been used 3 years after the end 

18 of the fiscal year in which the amount was allocated shall 

19 be reallocated among the States.’’. 

20 (b) CONFORMING AMENDMENT.—The item relating to 

21 section 5308 in the table of sections for chapter 53 is amend22 ed to read as follows: 

‘‘5308. Planning programs.’’. 

23 SEC. 3011. CAPITAL INVESTMENT PROGRAM. 

24 (a) SECTION HEADING.—The section heading of sec25 tion 5309 is amended to read as follows: 
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1 ‘‘§ 5309. Capital investment grants’’. 

2 (b) GENERAL AUTHORITY.—Section 5309(a) is amend3 ed— 

4 (1) in paragraph (1)— 

5 (A) by striking ‘‘(1) The Secretary of 

6 Transportation may make grants and loans’’ 

7 and inserting the following: 

8 ‘‘(1) GRANTS AUTHORIZED.—The Secretary may 

9 award grants’’; 

10 (B) in subparagraph (A), by striking ‘‘al11 ternatives analysis related to the development of 

12 systems,’’; 

13 (C) by striking subparagraphs (B), (C), 

14 (D), and (G); 

15 (D) by redesignating subparagraphs (E), 

16 (F), and (H) as subparagraphs (B), (C), and 

17 (D), respectively; 

18 (E) in subparagraph (C), as redesignated, 

19 by striking the semicolon at the end and insert20 ing ‘‘, including programs of bus and bus-related 

21 projects for assistance to subrecipients which are 

22 public agencies, private companies engaged in 

23 public transportation, or private nonprofit orga24 nizations; and’’; and 

25 (F) in subparagraph (D), as redesignated— 
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1 (i) by striking ‘‘to support fixed guide2 way systems’’; and 

3 (ii) by striking ‘‘dedicated bus and 

4 high occupancy vehicle’’; 

5 (2) by amending paragraph (2) to read as fol6 lows: 

7 ‘‘(2) GRANTEE REQUIREMENTS.— 

8 ‘‘(A) GRANTEE IN URBANIZED AREA.—The 

9 Secretary shall require that any grants awarded 

10 under this section to a recipient or subrecipient 

11 located in an urbanized area shall be subject to 

12 all terms, conditions, requirements, and provi13 sions that the Secretary determines to be nec14 essary or appropriate for the purposes of this 

15 section, including requirements for the disposi16 tion of net increases in the value of real property 

17 resulting from the project assisted under this sec18 tion. 

19 ‘‘(B) GRANTEE NOT IN URBANIZED AREA.— 

20 The Secretary shall require that any grants 

21 awarded under this section to a recipient or sub22 recipient not located in an urbanized area shall 

23 be subject to the same terms, conditions, require24 ments, and provisions as a recipient or sub25 recipient of assistance under section 5311. 
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1 ‘‘(C) SUBRECIPIENT.—The Secretary shall 

2 require that any private, nonprofit organization 

3 that is a subrecipient of a grant awarded under 

4 this section shall be subject to the same terms, 

5 conditions, requirements, and provisions as a 

6 subrecipient of assistance under section 5310. 

7 ‘‘(D) STATEWIDE TRANSIT PROVIDER

8 GRANTEES.—A statewide transit provider that 

9 receives a grant under this section shall be sub10 ject to the terms, conditions, requirements, and 

11 provisions of this section or section 5311, con12 sistent with the scope and purpose of the grant 

13 and the location of the project.’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(3) CERTIFICATION.—An applicant that has 

16 submitted the certifications required under subpara17 graphs (A), (B), (C), and (H) of section 5307(d)(1) 

18 shall be deemed to have provided sufficient informa19 tion upon which the Secretary may make the findings 

20 required under this subsection.’’. 

21 (c) DEFINED TERM.—Section 5309(b) is amended to 

22 read as follows: 

23 ‘‘(b) DEFINED TERM.—As used in this section, the 

24 term ‘alternatives analysis’ means a study conducted as 
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1 part of the transportation planning process required under 

2 sections 5303 and 5304, which includes— 

3 ‘‘(1) an assessment of a wide range of public 

4 transportation alternatives designed to address a 

5 transportation problem in a corridor or subarea; 

6 ‘‘(2) sufficient information to enable the Sec7 retary to make the findings of project justification 

8 and local financial commitment required under this 

9 section; 

10 ‘‘(3) the selection of a locally preferred alter11 native; and 

12 ‘‘(4) the adoption of the locally preferred alter13 native as part of the long-range transportation plan 

14 required under section 5303.’’. 

15 (d) GRANT REQUIREMENTS.—Section 5309(d) is 

16 amended to read as follows: 

17 ‘‘(d) GRANT REQUIREMENTS.—The Secretary may not 

18 approve a grant for a project under this section unless the 

19 Secretary determines that— 

20 ‘‘(1) the project is part of an approved transpor21 tation plan and program of projects required under 

22 sections 5303, 5304, and 5306; and 

23 ‘‘(2) the applicant has, or will have— 
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1 ‘‘(A) the legal, financial, and technical ca2 pacity to carry out the project, including safety 

3 and security aspects of the project; 

4 ‘‘(B) satisfactory continuing control over 

5 the use of the equipment or facilities; and 

6 ‘‘(C) the capability and willingness to 

7 maintain the equipment or facilities.’’. 

8 (e) MAJOR CAPITAL INVESTMENT PROJECTS OF

9 $75,000,000 OR MORE.—Section 5309(e) is amended to 

10 read as follows: 

11 ‘‘(e) MAJOR CAPITAL INVESTMENT PROJECTS OF

12 $75,000,000 OR MORE.— 

13 ‘‘(1) FULL FUNDING GRANT AGREEMENT.—The 

14 Secretary shall enter into a full funding grant agree15 ment, based on the evaluations and ratings required 

16 under this subsection, with each grantee receiving not 

17 less than $75,000,000 under this subsection for a new 

18 fixed guideway capital project that— 

19 ‘‘(A) is authorized for final design and con20 struction; and 

21 ‘‘(B) has been rated as medium, medium22 high, or high, in accordance with paragraph 

23 (5)(B). 

24 ‘‘(2) DETERMINATIONS.—The Secretary may not 

25 award a grant under this subsection for a new fixed 
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1 guideway capital project unless the Secretary deter2 mines that the proposed project is— 

3 ‘‘(A) based on the results of an alternatives 

4 analysis and preliminary engineering; 

5 ‘‘(B) justified based on a comprehensive re6 view of its mobility improvements, environ7 mental benefits, cost-effectiveness, operating effi8 ciencies, economic development effects, and public 

9 transportation supportive land use patterns and 

10 policies; and 

11 ‘‘(C) supported by an acceptable degree of 

12 local financial commitment, including evidence 

13 of stable and dependable financing sources to 

14 construct the project, and maintain and operate 

15 the entire public transportation system, while 

16 ensuring that the extent and quality of existing 

17 public transportation services are not degraded. 

18 ‘‘(3) EVALUATION OF PROJECT JUSTIFICATION.— 

19 In making the determinations under paragraph 

20 (2)(B) for a major capital investment grant, the Sec21 retary shall analyze, evaluate, and consider— 

22 ‘‘(A) the results of the alternatives analysis 

23 and preliminary engineering for the proposed 

24 project; 
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1 ‘‘(B) the reliability of the forecasts of costs 

2 and utilization made by the recipient and the 

3 contractors to the recipient; 

4 ‘‘(C) the direct and indirect costs of relevant 

5 alternatives; 

6 ‘‘(D) factors such as— 

7 ‘‘(i) congestion relief; 

8 ‘‘(ii) improved mobility; 

9 ‘‘(iii) air pollution; 

10 ‘‘(iv) noise pollution; 

11 ‘‘(v) energy consumption; and 

12 ‘‘(vi) all associated ancillary and miti13 gation costs necessary to carry out each al14 ternative analyzed; 

15 ‘‘(E) reductions in local infrastructure costs 

16 achieved through compact land use development 

17 and positive impacts on the capacity, utiliza18 tion, or longevity of other surface transportation 

19 assets and facilities; 

20 ‘‘(F) the cost of suburban sprawl; 

21 ‘‘(G) the degree to which the project in22 creases the mobility of the public transportation 

23 dependent population or promotes economic de24 velopment; 
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1 ‘‘(H) population density and current tran2 sit ridership in the transportation corridor; 

3 ‘‘(I) the technical capability of the grant re4 cipient to construct the project; 

5 ‘‘(J) any adjustment to the project justifica6 tion necessary to reflect differences in local land, 

7 construction, and operating costs; and 

8 ‘‘(K) other factors that the Secretary deter9 mines to be appropriate to carry out this chap10 ter. 

11 ‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMIT12 MENT.— 

13 ‘‘(A) IN GENERAL.—In evaluating a project 

14 under paragraph (2)(C), the Secretary shall re15 quire that— 

16 ‘‘(i) the proposed project plan provides 

17 for the availability of contingency amounts 

18 that the Secretary determines to be reason19 able to cover unanticipated cost increases; 

20 ‘‘(ii) each proposed local source of cap21 ital and operating financing is stable, reli22 able, and available within the proposed 

23 project timetable; and 

24 ‘‘(iii) local resources are available to 

25 recapitalize and operate the overall pro-
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1 posed public transportation system, includ2 ing essential feeder bus and other services 

3 necessary to achieve the projected ridership 

4 levels, while ensuring that the extent and 

5 quality of existing public transportation 

6 services are not degraded. 

7 ‘‘(B) EVALUATION CRITERIA.—In assessing 

8 the stability, reliability, and availability of pro9 posed sources of local financing under paragraph 

10 (2)(C), the Secretary shall consider— 

11 ‘‘(i) the reliability of the forecasts of 

12 costs and utilization made by the recipient 

13 and the contractors to the recipient; 

14 ‘‘(ii) existing grant commitments; 

15 ‘‘(iii) the degree to which financing 

16 sources are dedicated to the proposed pur17 poses; 

18 ‘‘(iv) any debt obligation that exists, or 

19 is proposed by the recipient, for the pro20 posed project or other public transportation 

21 purpose; and 

22 ‘‘(v) the extent to which the project has 

23 a local financial commitment that exceeds 

24 the required non-Federal share of the cost of 

25 the project, provided that if the Secretary 
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1 gives priority to financing projects that in2 clude more than the non-Federal share re3 quired under subsection (h), the Secretary 

4 shall give equal consideration to differences 

5 in the fiscal capacity of State and local gov6 ernments. 

7 ‘‘(5) PROJECT ADVANCEMENT AND RATINGS.— 

8 ‘‘(A) PROJECT ADVANCEMENT.—A proposed 

9 project under this subsection shall not advance 

10 from alternatives analysis to preliminary engi11 neering or from preliminary engineering to final 

12 design and construction unless the Secretary de13 termines that the project meets the requirements 

14 of this section and there is a reasonable likeli15 hood that the project will continue to meet such 

16 requirements. 

17 ‘‘(B) RATINGS.—In making a determina18 tion under subparagraph (A), the Secretary shall 

19 evaluate and rate the project on a 5-point scale 

20 (high, medium-high, medium, medium-low, or 

21 low) based on the results of the alternatives anal22 ysis, the project justification criteria, and the de23 gree of local financial commitment, as required 

24 under this subsection. In rating the projects, the 

25 Secretary shall provide, in addition to the over-
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1 all project rating, individual ratings for each of 

2 the criteria established by regulation. 

3 ‘‘(6) APPLICABILITY.—This subsection shall not 

4 apply to projects for which the Secretary has issued 

5 a letter of intent or entered into a full funding grant 

6 agreement before the date of enactment of the Federal 

7 Public Transportation Act of 2004. 

8 ‘‘(7) RULEMAKING.—Not later than 240 days 

9 after the date of enactment of the Federal Public 

10 Transportation Act of 2004, the Secretary shall issue 

11 regulations on the manner by which the Secretary 

12 shall evaluate and rate projects based on the results 

13 of alternatives analysis, project justification, and 

14 local financial commitment, in accordance with this 

15 subsection. 

16 ‘‘(8) POLICY GUIDANCE.— 

17 ‘‘(A) PUBLICATION.—The Secretary shall 

18 publish policy guidance regarding the new starts 

19 project review and evaluation process— 

20 ‘‘(i) not later than 120 days after the 

21 date of enactment of the Federal Public 

22 Transportation Act of 2004; and 

23 ‘‘(ii) each time significant changes are 

24 made by the Secretary to the new starts 

25 project review and evaluation process and 
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1 criteria, but not less frequently than once 

2 every 2 years. 

3 ‘‘(B) PUBLIC COMMENT AND RESPONSE.— 

4 The Secretary shall— 

5 ‘‘(i) invite public comment to the pol6 icy guidance published under subparagraph 

7 (A); and 

8 ‘‘(ii) publish a response to the com9 ments received under clause (i).’’. 

10 (f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS

11 THAN $75,000,000.— Section 5309(f) is amended to read 

12 as follows: 

13 ‘‘(f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS

14 THAN $75,000,000.— 

15 ‘‘(1) PROJECT CONSTRUCTION GRANT AGREE16 MENT.— 

17 ‘‘(A) IN GENERAL.—The Secretary shall 

18 enter into a project construction grant agree19 ment, based on evaluations and ratings required 

20 under this subsection, with each grantee receiv21 ing less than $75,000,000 under this subsection 

22 for a new fixed guideway or corridor improve23 ment capital project that— 

24 ‘‘(i) is authorized by law; and 
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1 ‘‘(ii) has been rated as medium, me2 dium-high, or high, in accordance with 

3 paragraph (3)(B). 

4 ‘‘(B) CONTENTS.— 

5 ‘‘(i) IN GENERAL.—An agreement 

6 under this paragraph shall specify— 

7 ‘‘(I) the scope of the project to be 

8 constructed; 

9 ‘‘(II) the estimated net cost of the 

10 project; 

11 ‘‘(III) the schedule under which 

12 the project shall be constructed; 

13 ‘‘(IV) the maximum amount of 

14 funding to be obtained under this sub15 section; 

16 ‘‘(V) the proposed schedule for ob17 ligation of future Federal grants; and 

18 ‘‘(VI) the sources of non-Federal 

19 funding. 

20 ‘‘(ii) ADDITIONAL FUNDING.—The 

21 agreement may include a commitment on 

22 the part of the Secretary to provide funding 

23 for the project in future fiscal years. 

24 ‘‘(C) FULL FUNDING GRANT AGREEMENT.— 

25 An agreement under this paragraph shall be con-
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1 sidered a full funding grant agreement for the 

2 purposes of subsection (g). 

3 ‘‘(2) SELECTION PROCESS.— 

4 ‘‘(A) SELECTION CRITERIA.—The Secretary 

5 may not award a grant under this subsection for 

6 a proposed project unless the Secretary deter7 mines that the project is— 

8 ‘‘(i) based on the results of planning 

9 and alternatives analysis; 

10 ‘‘(ii) justified based on a review of its 

11 public transportation supportive land use 

12 policies, cost effectiveness, and effect on local 

13 economic development; and 

14 ‘‘(iii) supported by an acceptable de15 gree of local financial commitment. 

16 ‘‘(B) PLANNING AND ALTERNATIVES.—In 

17 evaluating a project under subparagraph (A)(i), 

18 the Secretary shall analyze and consider the re19 sults of planning and alternatives analysis for 

20 the project. 

21 ‘‘(C) PROJECT JUSTIFICATION.—In making 

22 the determinations under subparagraph (A)(ii), 

23 the Secretary shall— 

24 ‘‘(i) determine the degree to which local 

25 land use policies are supportive of the pub-
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1 lic transportation project and the degree to 

2 which the project is likely to achieve local 

3 developmental goals; 

4 ‘‘(ii) determine the cost effectiveness of 

5 the project at the time of the initiation of 

6 revenue service; 

7 ‘‘(iii) determine the degree to which the 

8 project will have a positive effect on local 

9 economic development; 

10 ‘‘(iv) consider the reliability of the 

11 forecasts of costs and ridership associated 

12 with the project; and 

13 ‘‘(v) consider other factors that the Sec14 retary determines to be appropriate to 

15 carry out this subsection. 

16 ‘‘(D) LOCAL FINANCIAL COMMITMENT.—For 

17 purposes of subparagraph (A)(iii), the Secretary 

18 shall require that each proposed local source of 

19 capital and operating financing is stable, reli20 able, and available within the proposed project 

21 timetable. 

22 ‘‘(3) ADVANCEMENT OF PROJECT TO DEVELOP23 MENT AND CONSTRUCTION.— 

24 ‘‘(A) IN GENERAL.—A proposed project 

25 under this subsection may not advance from the 
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1 planning and alternatives analysis stage to 

2 project development and construction unless— 

3 ‘‘(i) the Secretary finds that the project 

4 meets the requirements of this subsection 

5 and there is a reasonable likelihood that the 

6 project will continue to meet such require7 ments; and 

8 ‘‘(ii) the metropolitan planning orga9 nization has adopted the locally preferred 

10 alternative for the project into the long11 range transportation plan. 

12 ‘‘(B) EVALUATION.—In making the findings 

13 under subparagraph (A), the Secretary shall 

14 evaluate and rate the project as high, medium15 high, medium, medium-low, or low, based on the 

16 results of the analysis of the project justification 

17 criteria and the degree of local financial commit18 ment, as required under this subsection. 

19 ‘‘(4) IMPACT REPORT.— 

20 ‘‘(A) IN GENERAL.—Not later than 240 

21 days after the date of enactment of the Federal 

22 Public Transportation Act of 2004, the Federal 

23 Transit Administration shall submit a report on 

24 the methodology to be used in evaluating the 

25 land use and economic development impacts of 
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1 non-fixed guideway or partial fixed guideway 

2 projects to— 

3 ‘‘(i) the Committee on Banking, Hous4 ing, and Urban Affairs of the Senate; and 

5 ‘‘(ii) the Committee on Transportation 

6 and Infrastructure of the House of Rep7 resentatives. 

8 ‘‘(B) CONTENTS.—The report submitted 

9 under subparagraph (A) shall address any quali10 tative and quantitative differences between fixed 

11 guideway and non-fixed guideway projects with 

12 respect to land use and economic development 

13 impacts. 

14 ‘‘(5) REGULATIONS.—Not later than 120 days 

15 after the date of enactment of the Federal Public 

16 Transportation Act of 2004, the Secretary shall issue 

17 regulations establishing an evaluation and rating 

18 process for proposed projects under this subsection 

19 that is based on the results of project justification and 

20 local financial commitment, as required under this 

21 subsection.’’. 

22 (g) FULL FUNDING GRANT AGREEMENTS.—Section 

23 5309(g)(2) is amended by adding at the end the following: 

24 ‘‘(C) BEFORE AND AFTER STUDY.— 
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1 ‘‘(i) IN GENERAL.—Each full funding grant 

2 agreement shall require the applicant to conduct a 

3 study that— 

4 ‘‘(I) describes and analyzes the impacts of 

5 the new start project on transit services and 

6 transit ridership; 

7 ‘‘(II) evaluates the consistency of predicted 

8 and actual project characteristics and perform9 ance; and 

10 ‘‘(III) identifies sources of differences be11 tween predicted and actual outcomes. 

12 ‘‘(ii) INFORMATION COLLECTION AND ANALYSIS

13 PLAN.— 

14 ‘‘(I) SUBMISSION OF PLAN.—Applicants 

15 seeking a full funding grant agreement shall sub16 mit a complete plan for the collection and anal17 ysis of information to identify the impacts of the 

18 new start project and the accuracy of the fore19 casts prepared during the development of the 

20 project. Preparation of this plan shall be in21 cluded in the full funding grant agreement as an 

22 eligible activity. 

23 ‘‘(II) CONTENTS OF PLAN.—The plan sub24 mitted under subclause (I) shall provide for— 
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1 ‘‘(aa) the collection of data on the cur2 rent transit system regarding transit service 

3 levels and ridership patterns, including ori4 gins and destinations, access modes, trip 

5 purposes, and rider characteristics; 

6 ‘‘(bb) documentation of the predicted 

7 scope, service levels, capital costs, operating 

8 costs, and ridership of the project; 

9 ‘‘(cc) collection of data on the transit 

10 system 2 years after the opening of the new 

11 start project, including analogous informa12 tion on transit service levels and ridership 

13 patterns and information on the as-built 

14 scope and capital costs of the new start 

15 project; and 

16 ‘‘(dd) analysis of the consistency of 

17 predicted project characteristics with the 

18 after data. 

19 ‘‘(D) COLLECTION OF DATA ON CURRENT SYSTEM.— 

20 To be eligible for a full funding grant agreement, recipients 

21 shall have collected data on the current system, according 

22 to the plan required, before the beginning of construction 

23 of the proposed new start project. Collection of this data 

24 shall be included in the full funding grant agreement as 

25 an eligible activity. 
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1 ‘‘(E) PUBLIC PRIVATE PARTNERSHIP PILOT PRO2 GRAM.— 

3 ‘‘(i) AUTHORIZATION.—The Secretary may es4 tablish a pilot program to demonstrate the advantages 

5 of public-private partnerships for certain fixed guide6 way systems development projects. 

7 ‘‘(ii) IDENTIFICATION OF QUALIFIED

8 PROJECTS.—The Secretary shall identify qualified 

9 public-private partnership projects as permitted by 

10 applicable State and local enabling laws and work 

11 with project sponsors to enhance project delivery and 

12 reduce overall costs.’’. 

13 (h) FEDERAL SHARE OF NET PROJECT COST.—Sec14 tion 5309(h) is amended to read as follows: 

15 ‘‘(h) FEDERAL SHARE OF ADJUSTED NET PROJECT

16 COST.— 

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

18 the net project cost based on engineering studies, stud19 ies of economic feasibility, and information on the ex20 pected use of equipment or facilities. 

21 ‘‘(2) ADJUSTMENT FOR COMPLETION UNDER

22 BUDGET.—The Secretary may adjust the final net 

23 project cost of a major capital investment project 

24 evaluated under subsections (e) and (f) to include the 

25 cost of eligible activities not included in the originally 
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1 defined project if the Secretary determines that the 

2 originally defined project has been completed at a cost 

3 that is significantly below the original estimate. 

4 ‘‘(3) MAXIMUM FEDERAL SHARE.— 

5 ‘‘(A) IN GENERAL.—A grant for the project 

6 shall be for 80 percent of the net project cost, or 

7 the net project cost as adjusted under paragraph 

8 (2), unless the grant recipient requests a lower 

9 grant percentage. 

10 ‘‘(B) EXCEPTIONS.—The Secretary may 

11 provide a higher grant percentage than requested 

12 by the grant recipient if— 

13 ‘‘(i) the Secretary determines that the 

14 net project cost of the project is not more 

15 than 10 percent higher than the net project 

16 cost estimated at the time the project was 

17 approved for advancement into preliminary 

18 engineering; and 

19 ‘‘(ii) the ridership estimated for the 

20 project is not less than 90 percent of the 

21 ridership estimated for the project at the 

22 time the project was approved for advance23 ment into preliminary engineering. 

24 ‘‘(4) OTHER SOURCES.—The costs not funded by 

25 a grant under this section may be funded from— 
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1 ‘‘(A) an undistributed cash surplus; 

2 ‘‘(B) a replacement or depreciation cash 

3 fund or reserve; or 

4 ‘‘(C) new capital, including any Federal 

5 funds that are eligible to be expended for trans6 portation. 

7 ‘‘(5) PLANNED EXTENSION TO FIXED GUIDEWAY

8 SYSTEM.—In addition to amounts allowed under 

9 paragraph (1), a planned extension to a fixed guide10 way system may include the cost of rolling stock pre11 viously purchased if the Secretary determines that 

12 only non-Federal funds were used and that the pur13 chase was made for use on the extension. A refund or 

14 reduction of the costs not funded by a grant under 

15 this section may be made only if a refund of a pro16 portional amount of the grant is made at the same 

17 time. 

18 ‘‘(6) EXCEPTION.—The prohibitions on the use of 

19 funds for matching requirements under section 

20 403(a)(5)(C)(vii) of the Social Security Act (42 

21 U.S.C. 603(a)(5)(C)(vii)) shall not apply to amounts 

22 allowed under paragraph (4).’’. 

23 (i) LOAN PROVISIONS AND FISCAL CAPACITY CONSID24 ERATIONS.—Section 5309 is amended— 

25 (1) by striking subsections (i), (j), (k), and (l); 
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1 (2) by redesignating subsections (m) and (n) as 

2 subsections (i) and (j), respectively; 

3 (3) by striking subsection (o) (as added by sec4 tion 3009(i) of the Federal Transit Act of 1998); and 

5 (4) by redesignating subsections (o) and (p) as 

6 subsections (k) and (l), respectively. 

7 (j) ALLOCATING AMOUNTS.—Section 5309(i), as redes8 ignated, is amended to read as follows: 

9 ‘‘(i) ALLOCATING AMOUNTS.— 

10 ‘‘(1) FISCAL YEAR 2004.—Of the amounts made 

11 available or appropriated for fiscal year 2004 under 

12 section 5338(a)(3)— 

13 ‘‘(A) $1,315,983,615 shall be allocated for 

14 projects of not less than $75,000,000 for major 

15 capital projects for new fixed guideway systems 

16 and extensions of such systems under subsection 

17 (e) and projects for new fixed guideway or cor18 ridor improvement capital projects under sub19 section (f); 

20 ‘‘(B) $1,199,387,615 shall be allocated for 

21 capital projects for fixed guideway moderniza22 tion; and 

23 ‘‘(C) $603,617,520 shall be allocated for 

24 capital projects for buses and bus-related equip25 ment and facilities. 
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1 ‘‘(2) IN GENERAL.—Of the amounts made avail2 able or appropriated for fiscal year 2005 and each 

3 fiscal year thereafter for grants under this section 

4 pursuant to subsections (b)(4) and (c) of section 

5 5338— 

6 ‘‘(A) the amounts appropriated under sec7 tion 5338(c) shall be allocated for major capital 

8 projects for— 

9 ‘‘(i) new fixed guideway systems and 

10 extensions of not less than $75,000,000, in 

11 accordance with subsection (e); and 

12 ‘‘(ii) projects for new fixed guideway 

13 or corridor improvement capital projects, in 

14 accordance with subsection (f); and 

15 ‘‘(B) the amounts made available under sec16 tion 5338(b)(4) shall be allocated for capital 

17 projects for buses and bus-related equipment and 

18 facilities. 

19 ‘‘(3) FIXED GUIDEWAY MODERNIZATION.—The 

20 amounts made available for fixed guideway mod21 ernization under section 5338(b)(2)(K) for fiscal year 

22 2005 and each fiscal year thereafter shall be allocated 

23 in accordance with section 5337. 

24 ‘‘(4) PRELIMINARY ENGINEERING.—Not more 

25 that 8 percent of the allocation described in para-
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1 graphs (1)(A) and (2)(A) may be expended on pre2 liminary engineering. 

3 ‘‘(5) FUNDING FOR FERRY BOATS.—Of the 

4 amounts described in paragraphs (1)(A) and (2)(A), 

5 $10,400,000 shall be available in each of the fiscal 

6 years 2004 through 2009 for capital projects in Alas7 ka and Hawaii for new fixed guideway systems and 

8 extension projects utilizing ferry boats, ferry boat ter9 minals, or approaches to ferry boat terminals. 

10 ‘‘(6) BUS AND BUS FACILITY GRANTS.— 

11 ‘‘(A) CONSIDERATIONS.—In making grants 

12 under paragraphs (1)(C) and (2)(B), the Sec13 retary shall consider the age and condition of 

14 buses, bus fleets, related equipment, and bus-re15 lated facilities. 

16 ‘‘(B) PROJECTS NOT IN URBANIZED

17 AREAS.—Of the amounts made available under 

18 paragraphs (1)(C) and (2)(B), not less than 5.5 

19 percent shall be available in each fiscal year for 

20 projects that are not in urbanized areas. 

21 ‘‘(C) INTERMODAL TERMINALS.—Of the 

22 amounts made available under paragraphs 

23 (1)(C) and (2)(B), not less than $75,000,000 

24 shall be available in each fiscal year for inter-
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1 modal terminal projects, including the intercity 

2 bus portion of such projects.’’. 

3 (k) REPORTS.—Section 5309 is amended by inserting 

4 at the end the following: 

5 ‘‘(m) REPORTS.— 

6 ‘‘(1) ANNUAL REPORT ON FUNDING REC7 OMMENDATIONS.— 

8 ‘‘(A) IN GENERAL.—Not later than the first 

9 Monday of February of each year, the Secretary 

10 shall submit a report on funding recommenda11 tions to— 

12 ‘‘(i) the Committee on Transportation 

13 and Infrastructure of the House of Rep14 resentatives; 

15 ‘‘(ii) the Committee on Banking, Hous16 ing, and Urban Affairs of the Senate; 

17 ‘‘(iii) the Subcommittee on Transpor18 tation of the Committee on Appropriations 

19 of the House of Representatives; and 

20 ‘‘(iv) the Subcommittee on Transpor21 tation of the Committee on Appropriations 

22 of the Senate. 

23 ‘‘(B) CONTENTS.—The report submitted 

24 under subparagraph (A) shall contain— 
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1 ‘‘(i) a proposal on the allocation of 

2 amounts to finance grants for capital in3 vestment projects among grant applicants; 

4 ‘‘(ii) a recommendation of projects to 

5 be funded based on— 

6 ‘‘(I) the evaluations and ratings 

7 determined under subsection (e) and 

8 (f); and 

9 ‘‘(II) existing commitments and 

10 anticipated funding levels for the sub11 sequent 3 fiscal years; and 

12 ‘‘(iii) detailed ratings and evaluations 

13 on each project recommended for funding. 

14 ‘‘(2) TRIENNIAL REPORTS ON PROJECT RAT15 INGS.— 

16 ‘‘(A) IN GENERAL.—Not later than the first 

17 Monday of February, the first Monday of June, 

18 and the first Monday of October of each year, the 

19 Secretary shall submit a report on project rat20 ings to— 

21 ‘‘(i) the Committee on Transportation 

22 and Infrastructure of the House of Rep23 resentatives; 

24 ‘‘(ii) the Committee on Banking, Hous25 ing, and Urban Affairs of the Senate; 
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1 ‘‘(iii) the Subcommittee on Transpor2 tation of the Committee on Appropriations 

3 of the House of Representatives; and 

4 ‘‘(iv) the Subcommittee on Transpor5 tation of the Committee on Appropriations 

6 of the Senate. 

7 ‘‘(B) CONTENTS.—Each report submitted 

8 under subparagraph (A) shall contain— 

9 ‘‘(i) a summary of the ratings of all 

10 capital investment projects for which fund11 ing was requested under this section; 

12 ‘‘(ii) detailed ratings and evaluations 

13 on the project of each applicant that had 

14 significant changes to the finance or project 

15 proposal or has completed alternatives anal16 ysis or preliminary engineering since the 

17 date of the latest report; and 

18 ‘‘(iii) all relevant information sup19 porting the evaluation and rating of each 

20 updated project, including a summary of 

21 the financial plan of each updated project. 

22 ‘‘(3) BEFORE AND AFTER STUDY REPORTS.—Not 

23 later than the first Monday of August of each year, 

24 the Secretary shall submit a report containing a sum-
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1 mary of the results of the studies conducted under 

2 subsection (g)(2) to— 

3 ‘‘(A) the Committee on Transportation and 

4 Infrastructure of the House of Representatives; 

5 ‘‘(B) the Committee on Banking, Housing, 

6 and Urban Affairs of the Senate; 

7 ‘‘(C) the Subcommittee on Transportation 

8 of the Committee on Appropriations of the House 

9 of Representatives; and 

10 ‘‘(D) the Subcommittee on Transportation 

11 of the Committee on Appropriations of the Sen12 ate. 

13 ‘‘(4) CONTRACTOR PERFORMANCE ASSESSMENT

14 REPORT.— 

15 ‘‘(A) IN GENERAL.—Not later than 180 

16 days after the enactment of the Federal Public 

17 Transportation Act of 2004, and each year there18 after, the Secretary shall submit a report ana19 lyzing the consistency and accuracy of cost and 

20 ridership estimates made by each contractor to 

21 public transportation agencies developing major 

22 investment projects to the committees and sub23 committees listed under paragraph (3). 

24 ‘‘(B) CONTENTS.—The report submitted 

25 under subparagraph (A) shall compare the cost 
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1 and ridership estimates made at the time 

2 projects are approved for entrance into prelimi3 nary engineering with— 

4 ‘‘(i) estimates made at the time 

5 projects are approved for entrance into final 

6 design; 

7 ‘‘(ii) costs and ridership when the 

8 project commences revenue operation; and 

9 ‘‘(iii) costs and ridership when the 

10 project has been in operation for 2 years. 

11 ‘‘(5) ANNUAL GENERAL ACCOUNTING OFFICE RE12 VIEW.— 

13 ‘‘(A) REVIEW.—The Comptroller General of 

14 the United States shall conduct an annual re15 view of the processes and procedures for evalu16 ating and rating projects and recommending 

17 projects and the Secretary’s implementation of 

18 such processes and procedures. 

19 ‘‘(B) REPORT.—Not later than 90 days 

20 after the submission of each report required 

21 under paragraph (1), the Comptroller General 

22 shall submit a report to Congress that summa23 rizes the results of the review conducted under 

24 subparagraph (A). 
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1 ‘‘(6) CONTRACTOR PERFORMANCE INCENTIVE RE2 PORT.—Not later than 180 days after the enactment 

3 of the Federal Public Transportation Act of 2004, the 

4 Secretary shall submit a report to the committees and 

5 subcommittees listed under paragraph (3) on the suit6 ability of allowing contractors to public transpor7 tation agencies that undertake major capital invest8 ments under this section to receive performance incen9 tive awards if a project is completed for less than the 

10 original estimated cost.’’. 

11 SEC. 3012. NEW FREEDOM FOR ELDERLY PERSONS AND 

12 PERSONS WITH DISABILITIES. 

13 (a) IN GENERAL.—Section 5310 is amended to read 

14 as follows: 

15 ‘‘§ 5310. New freedom for elderly persons and persons 

16 with disabilities 

17 ‘‘(a) GENERAL AUTHORITY.— 

18 ‘‘(1) AUTHORIZATION.—The Secretary may 

19 award grants to a State for capital public transpor20 tation projects that are planned, designed, and car21 ried out to meet the needs of elderly individuals and 

22 individuals with disabilities, with priority given to 

23 the needs of these individuals to access necessary 

24 health care. 
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1 ‘‘(2) ACQUISITION OF PUBLIC TRANSPORTATION

2 SERVICES.—A capital public transportation project 

3 under this section may include acquiring public 

4 transportation services as an eligible capital expense. 

5 ‘‘(3) ADMINISTRATIVE COSTS.—A State may use 

6 not more than 15 percent of the amounts received 

7 under this section to administer, plan, and provide 

8 technical assistance for a project funded under this 

9 section. 

10 ‘‘(b) ALLOTMENTS AMONG STATES.— 

11 ‘‘(1) IN GENERAL.—From amounts made avail12 able or appropriated in each fiscal year under sub13 sections (a)(1)(C)(iv) and (b)(2)(D) of section 5338 

14 for grants under this section, the Secretary shall allot 

15 amounts to each State under a formula based on the 

16 number of elderly individuals and individuals with 

17 disabilities in each State. 

18 ‘‘(2) TRANSFER OF FUNDS.—Any funds allotted 

19 to a State under paragraph (1) may be transferred by 

20 the State to the apportionments made under sections 

21 5311(c) and 5336 if such funds are only used for eli22 gible projects selected under this section. 

23 ‘‘(3) REALLOCATION OF FUNDS.—A State receiv24 ing a grant under this section may reallocate such 

25 grant funds to— 
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1 ‘‘(A) a private nonprofit organization; 

2 ‘‘(B) a public transportation agency or au3 thority; or 

4 ‘‘(C) a governmental authority that— 

5 ‘‘(i) has been approved by the State to 

6 coordinate services for elderly individuals 

7 and individuals with disabilities; 

8 ‘‘(ii) certifies that nonprofit organiza9 tions are not readily available in the area 

10 that can provide the services described 

11 under this subsection; or 

12 ‘‘(iii) will provide services to persons 

13 with disabilities that exceed those services 

14 required by the Americans with Disabilities 

15 Act. 

16 ‘‘(c) FEDERAL SHARE.— 

17 ‘‘(1) MAXIMUM.— 

18 ‘‘(A) IN GENERAL.—A grant for a capital 

19 project under this section may not exceed 80 per20 cent of the net capital costs of the project, as de21 termined by the Secretary. 

22 ‘‘(B) EXCEPTION.—A State described in sec23 tion 120(d) of title 23 shall receive an increased 

24 Federal share in accordance with the formula 

25 under that section. 
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1 ‘‘(2) REMAINING COSTS.—The costs of a capital 

2 project under this section that are not funded through 

3 a grant under this section— 

4 ‘‘(A) may be funded from an undistributed 

5 cash surplus, a replacement or depreciation cash 

6 fund or reserve, a service agreement with a State 

7 or local social service agency or a private social 

8 service organization, or new capital; and 

9 ‘‘(B) may be derived from amounts appro10 priated to or made available to any Federal 

11 agency (other than the Department of Transpor12 tation, except for Federal Lands Highway funds) 

13 that are eligible to be expended for transpor14 tation. 

15 ‘‘(3) EXCEPTION.—For purposes of paragraph 

16 (2), the prohibitions on the use of funds for matching 

17 requirements under section 403(a)(5)(C)(vii) of the 

18 Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) 

19 shall not apply to Federal or State funds to be used 

20 for transportation purposes. 

21 ‘‘(d) GRANT REQUIREMENTS.— 

22 ‘‘(1) IN GENERAL.—A grant recipient under this 

23 section shall be subject to the requirements of a grant 

24 recipient under section 5307 to the extent the Sec25 retary determines to be appropriate. 
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1 ‘‘(2) CERTIFICATION REQUIREMENTS.— 

2 ‘‘(A) FUND TRANSFERS.—A grant recipient 

3 under this section that transfers funds to a 

4 project funded under section 5336 in accordance 

5 with subsection (b)(2) shall certify that the 

6 project for which the funds are requested has 

7 been coordinated with private nonprofit pro8 viders of services under this section. 

9 ‘‘(B) PROJECT SELECTION AND PLAN DE10 VELOPMENT.—Each grant recipient under this 

11 section shall certify that— 

12 ‘‘(i) the projects selected were derived 

13 from a locally developed, coordinated public 

14 transit-human services transportation plan; 

15 and 

16 ‘‘(ii) the plan was developed through a 

17 process that included representatives of pub18 lic, private, and nonprofit transportation 

19 and human services providers and partici20 pation by the public. 

21 ‘‘(C) ALLOCATIONS TO SUBRECIPIENTS.— 

22 Each grant recipient under this section shall cer23 tify that allocations of the grant to subrecipients, 

24 if any, are distributed on a fair and equitable 

25 basis. 
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1 ‘‘(e) STATE PROGRAM OF PROJECTS.— 

2 ‘‘(1) SUBMISSION TO SECRETARY.—Each State 

3 shall annually submit a program of transportation 

4 projects to the Secretary for approval with an assur5 ance that the program provides for maximum feasible 

6 coordination between transportation services funded 

7 under this section and transportation services assisted 

8 by other Federal sources. 

9 ‘‘(2) USE OF FUNDS.—Each State may use 

10 amounts made available to carry out this section to 

11 provide transportation services for elderly individuals 

12 and individuals with disabilities if such services are 

13 included in an approved State program of projects. 

14 ‘‘(f) LEASING VEHICLES.—Vehicles acquired under 

15 this section may be leased to local governmental authorities 

16 to improve transportation services designed to meet the 

17 needs of elderly individuals and individuals with disabil18 ities. 

19 ‘‘(g) MEAL DELIVERY FOR HOMEBOUND INDIVID20 UALS.—Public transportation service providers receiving 

21 assistance under this section or section 5311(c) may coordi22 nate and assist in regularly providing meal delivery service 

23 for homebound individuals if the delivery service does not 

24 conflict with providing public transportation service or re25 duce service to public transportation passengers. 
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1 ‘‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT.— 

2 With the consent of the recipient in possession of a facility 

3 or equipment acquired with a grant under this section, a 

4 State may transfer the facility or equipment to any recipi5 ent eligible to receive assistance under this chapter if the 

6 facility or equipment will continue to be used as required 

7 under this section. 

8 ‘‘(i) FARES NOT REQUIRED.—This section does not re9 quire that elderly individuals and individuals with disabil10 ities be charged a fare.’’. 

11 (b) CONFORMING AMENDMENT.—The item relating to 

12 section 5310 in the table of sections for chapter 53 is amend13 ed to read as follows: 

‘‘5310. New freedom for elderly persons and persons with disabilities.’’. 

14 SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBAN15 IZED AREAS. 

16 (a) DEFINITIONS.—Section 5311(a) is amended to 

17 read as follows: 

18 ‘‘(a) DEFINITIONS.—As used in this section, the fol19 lowing definitions shall apply: 

20 ‘‘(1) RECIPIENT.—The term ‘recipient’ means a 

21 State or Indian tribe that receives a Federal transit 

22 program grant directly from the Federal Government. 

23 ‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 

24 means a State or local governmental authority, a 

25 nonprofit organization, or a private operator of pub-
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1 lic transportation or intercity bus service that receives 

2 Federal transit program grant funds indirectly 

3 through a recipient.’’. 

4 (b) GENERAL AUTHORITY.—Section 5311(b) is amend5 ed— 

6 (1) by amending paragraph (1) to read as fol7 lows: 

8 ‘‘(1) GRANTS AUTHORIZED.—Except as provided 

9 under paragraph (2), the Secretary may award 

10 grants under this section to recipients located in 

11 areas other than urbanized areas for— 

12 ‘‘(A) public transportation capital projects; 

13 ‘‘(B) operating costs of equipment and fa14 cilities for use in public transportation; and 

15 ‘‘(C) the acquisition of public transpor16 tation services.’’; 

17 (2) by redesignating paragraph (2) as para18 graph (3); 

19 (3) by inserting after paragraph (1) the fol20 lowing: 

21 ‘‘(2) STATE PROGRAM.— 

22 ‘‘(A) IN GENERAL.—A project eligible for a 

23 grant under this section shall be included in a 

24 State program for public transportation service 
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1 projects, including agreements with private pro2 viders of public transportation service. 

3 ‘‘(B) SUBMISSION TO SECRETARY.—Each 

4 State shall annually submit the program de5 scribed in subparagraph (A) to the Secretary. 

6 ‘‘(C) APPROVAL.—The Secretary may not 

7 approve the program unless the Secretary deter8 mines that— 

9 ‘‘(i) the program provides a fair dis10 tribution of amounts in the State; and 

11 ‘‘(ii) the program provides the max12 imum feasible coordination of public trans13 portation service assisted under this section 

14 with transportation service assisted by other 

15 Federal sources.’’; 

16 (4) in paragraph (3), as redesignated— 

17 (A) by striking ‘‘(3) The Secretary of 

18 Transportation’’ and inserting the following: 

19 ‘‘(3) RURAL TRANSPORTATION ASSISTANCE PRO20 GRAM.— 

21 ‘‘(A) ESTABLISHMENT.—The Secretary’’; 

22 (B) by striking ‘‘make’’ and inserting ‘‘use 

23 not more than 2 percent of the amount made 

24 available to carry out this section to award’’; 

25 and 
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1 (C) by adding at the end the following: 

2 ‘‘(B) DATA COLLECTION.— 

3 ‘‘(i) REPORT.—Each grantee under 

4 this section shall submit an annual report 

5 to the Secretary containing information on 

6 capital investment, operations, and service 

7 provided with funds received under this sec8 tion, including— 

9 ‘‘(I) total annual revenue; 

10 ‘‘(II) sources of revenue; 

11 ‘‘(III) total annual operating 

12 costs; 

13 ‘‘(IV) total annual capital costs; 

14 ‘‘(V) fleet size and type, and re15 lated facilities; 

16 ‘‘(VI) revenue vehicle miles; and 

17 ‘‘(VII) ridership.’’; and 

18 (5) by adding after paragraph (3) the following: 

19 ‘‘(4) Of the amount made available to carry out 

20 paragraph (3)— 

21 ‘‘(A) not more than 15 percent may be used 

22 to carry out projects of a national scope; and 

23 ‘‘(B) any amounts not used under subpara24 graph (A) shall be allocated to the States.’’. 
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1 (c) APPORTIONMENTS.—Section 5311(c) is amended to 

2 read as follows: 

3 ‘‘(c) APPORTIONMENTS.— 

4 ‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RES5 ERVATIONS.—Of the amounts made available or ap6 propriated for each fiscal year pursuant to sub7 sections (a)(1)(C)(v) and (b)(2)(F) of section 5338, 

8 the following amounts shall be apportioned for grants 

9 to Indian tribes for any purpose eligible under this 

10 section, under such terms and conditions as may be 

11 established by the Secretary: 

12 ‘‘(A) $6,000,000 for fiscal year 2005. 

13 ‘‘(B) $8,000,000 for fiscal year 2006. 

14 ‘‘(C) $10,000,000 for fiscal year 2007. 

15 ‘‘(D) $12,000,000 for fiscal year 2008. 

16 ‘‘(E) $15,000,000 for fiscal year 2009. 

17 ‘‘(2) REMAINING AMOUNTS.—Of the amounts 

18 made available or appropriated for each fiscal year 

19 pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of 

20 section 5338 that are not apportioned under para21 graph (1)— 

22 ‘‘(A) 20 percent shall be apportioned to the 

23 States in accordance with paragraph (3); and 

24 ‘‘(B) 80 percent shall be apportioned to the 

25 States in accordance with paragraph (4). 
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1 ‘‘(3) APPORTIONMENTS BASED ON LAND AREA IN

2 NONURBANIZED AREAS.— 

3 ‘‘(A) IN GENERAL.—Subject to subpara4 graph (B), each State shall receive an amount 

5 that is equal to the amount apportioned under 

6 paragraph (2)(A) multiplied by the ratio of the 

7 land area in areas other than urbanized areas in 

8 that State and divided by the land area in all 

9 areas other than urbanized areas in the United 

10 States, as shown by the most recent decennial 

11 census of population. 

12 ‘‘(B) MAXIMUM APPORTIONMENT.—No State 

13 shall receive more than 5 percent of the amount 

14 apportioned under this paragraph. 

15 ‘‘(4) APPORTIONMENTS BASED ON POPULATION

16 IN NONURBANIZED AREAS.—Each State shall receive 

17 an amount equal to the amount apportioned under 

18 paragraph (2)(B) multiplied by the ratio of the popu19 lation of areas other than urbanized areas in that 

20 State divided by the population of all areas other 

21 than urbanized areas in the United States, as shown 

22 by the most recent decennial census of population.’’. 

23 (d) USE FOR ADMINISTRATIVE, PLANNING, AND TECH24 NICAL ASSISTANCE.—Section 5311(e) is amended— 
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1 (1) by striking ‘‘AND TECHNICAL ASSISTANCE.— 

2 (1) The Secretary of Transportation’’ and inserting ‘‘, 

3 PLANNING, AND TECHNICAL ASSISTANCE.—The Sec4 retary’’; 

5 (2) by striking ‘‘to a recipient’’; and 

6 (3) by striking paragraph (2). 

7 (e) INTERCITY BUS TRANSPORTATION.—Section 

8 5311(f) is amended— 

9 (1) in paragraph (1)— 

10 (A) by striking ‘‘(1)’’ and inserting the fol11 lowing: 

12 ‘‘(1) IN GENERAL.—’’; and 

13 (B) by striking ‘‘after September 30, 1993,’’; 

14 and 

15 (2) in paragraph (2)— 

16 (A) by striking ‘‘A State’’ and inserting 

17 ‘‘After consultation with affected intercity bus 

18 service providers, a State’’; and 

19 (B) by striking ‘‘of Transportation’’. 

20 (f) FEDERAL SHARE OF COSTS.—Section 5311(g) is 

21 amended to read as follows: 

22 ‘‘(g) FEDERAL SHARE OF COSTS.— 

23 ‘‘(1) MAXIMUM FEDERAL SHARE.— 

24 ‘‘(A) CAPITAL PROJECTS.— 
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1 ‘‘(i) IN GENERAL.—Except as provided 

2 under clause (ii), a grant awarded under 

3 this section for any purpose other than op4 erating assistance may not exceed 80 per5 cent of the net capital costs of the project, 

6 as determined by the Secretary. 

7 ‘‘(ii) EXCEPTION.—A State described 

8 in section 120(d) of title 23 shall receive a 

9 Federal share of the net capital costs in ac10 cordance with the formula under that sec11 tion. 

12 ‘‘(B) OPERATING ASSISTANCE.— 

13 ‘‘(i) IN GENERAL.—Except as provided 

14 under clause (ii), a grant made under this 

15 section for operating assistance may not ex16 ceed 50 percent of the net operating costs of 

17 the project, as determined by the Secretary. 

18 ‘‘(ii) EXCEPTION.—A State described 

19 in section 120(d) of title 23 shall receive a 

20 Federal share of the net operating costs 

21 equal to 62.5 percent of the Federal share 

22 provided for under subparagraph (A)(ii). 

23 ‘‘(2) OTHER FUNDING SOURCES.—Funds for a 

24 project under this section that are not provided for by 

25 a grant under this section— 
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1 ‘‘(A) may be provided from— 

2 ‘‘(i) an undistributed cash surplus; 

3 ‘‘(ii) a replacement or depreciation 

4 cash fund or reserve; 

5 ‘‘(iii) a service agreement with a State 

6 or local social service agency or a private 

7 social service organization; or 

8 ‘‘(iv) new capital; and 

9 ‘‘(B) may be derived from amounts appro10 priated to or made available to a Federal agency 

11 (other than the Department of Transportation, 

12 except for Federal Land Highway funds) that 

13 are eligible to be expended for transportation. 

14 ‘‘(3) USE OF FEDERAL GRANT.—A State car15 rying out a program of operating assistance under 

16 this section may not limit the level or extent of use 

17 of the Federal grant for the payment of operating ex18 penses. 

19 ‘‘(4) EXCEPTION.—For purposes of paragraph 

20 (2)(B), the prohibitions on the use of funds for match21 ing requirements under section 403(a)(5)(c)(vii) of 

22 the Social Security Act (42 U.S.C. 603(a)(5)(c)(vii)) 

23 shall not apply to Federal or State funds to be used 

24 for transportation purposes.’’. 
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1 (g) WAIVER CONDITION.—Section 5311(j)(1) is 

2 amended by striking ‘‘but the Secretary of Labor may waive 

3 the application of section 5333(b)’’ and inserting ‘‘if the 

4 Secretary of Labor utilizes a Special Warranty that pro5 vides a fair and equitable arrangement to protect the inter6 ests of employees’’. 

7 SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, 

8 AND DEPLOYMENT PROJECTS. 

9 (a) IN GENERAL.—Section 5312 is amended— 

10 (1) by amending subsection (a) to read as fol11 lows: 

12 ‘‘(a) RESEARCH, DEVELOPMENT, AND DEMONSTRA13 TION PROJECTS.— 

14 ‘‘(1) IN GENERAL.—The Secretary may make 

15 grants, contracts, cooperative agreements, or other 

16 transactions (including agreements with departments, 

17 agencies, and instrumentalities of the United States 

18 Government) for research, development, demonstration 

19 or deployment projects, or evaluation of technology of 

20 national significance to public transportation that the 

21 Secretary determines will improve public transpor22 tation service or help public transportation service 

23 meet the total transportation needs at a minimum 

24 cost. 
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1 ‘‘(2) INFORMATION.—The Secretary may request 

2 and receive appropriate information from any source. 

3 ‘‘(3) SAVINGS PROVISION.—This subsection does 

4 not limit the authority of the Secretary under any 

5 other law.’’; 

6 (2) by striking subsections (b) and (c); 

7 (3) by redesignating subsections (d) and (e) as 

8 (b) and (c), respectively. 

9 (4) in subsection (b), as redesignated— 

10 (A) in paragraph (2), by striking ‘‘other 

11 agreements’’ and inserting ‘‘other transactions’’; 

12 and 

13 (B) in paragraph (5), by striking ‘‘within 

14 the Mass Transit Account of the Highway Trust 

15 Fund’’; and 

16 (5) in subsection (c), as redesignated— 

17 (A) in paragraph (2), by striking ‘‘public 

18 and private’’ and inserting ‘‘public or private’’; 

19 and 

20 (B) in paragraph (3), by striking ‘‘within 

21 the Mass Transit Account of the Highway Trust 

22 Fund’’ . 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) SECTION HEADING.—The heading of section 

25 5312 is amended to read as follows: 
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1 ‘‘§ 5312. Research, development, demonstration, and 

2 deployment projects’’. 

3 (2) TABLE OF SECTIONS.—The item relating to 

4 section 5312 in the table of sections for chapter 53 is 

5 amended to read as follows: 

‘‘5312. Research, development, demonstration, and deployment projects.’’. 

6 SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM. 

7 (a) IN GENERAL.—Section 5313 is amended— 

8 (1) by striking subsection (b); 

9 (2) in subsection (a)— 

10 (A) in paragraph (1), by striking ‘‘(1) The 

11 amounts made available under paragraphs (1) 

12 and (2)C)(ii) of section 5338(c) of this title’’ and 

13 inserting ‘‘The amounts made available under 

14 subsections (a)(5)(C)(iii) and (b)(2)(G)(i) of sec15 tion 5338’’; and 

16 (B) in paragraph (2), by striking ‘‘(2)’’ and 

17 inserting the following: 

18 ‘‘(b) FEDERAL ASSISTANCE.—’’; and 

19 (3) by amending subsection (c) to read as fol20 lows: 

21 ‘‘(c) FEDERAL SHARE.—If there would be a clear and 

22 direct financial benefit to an entity under a grant or con23 tract financed under this section, the Secretary shall estab24 lish a Federal share consistent with such benefit.’’. 

25 (b) CONFORMING AMENDMENTS.— 
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1 (1) SECTION HEADING.—The heading of section 

2 5313 is amended to read as follows: 

3 ‘‘§ 5313. Transit cooperative research program’’. 

4 (2) TABLE OF SECTIONS.—The item relating to 

5 section 5313 in the table of sections for chapter 53 is 

6 amended to read as follows: 

‘‘5313. Transit cooperative research program.’’. 

7 SEC. 3016. NATIONAL RESEARCH PROGRAMS. 

8 (a) IN GENERAL.—Section 5314 is amended— 

9 (1) in subsection (a)— 

10 (A) by amending paragraph (1) to read as 

11 follows: 

12 ‘‘(1) AVAILABILITY OF FUNDS.—The Secretary 

13 may use amounts made available under subsections 

14 (a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338 for 

15 grants, contracts, cooperative agreements, or other 

16 transactions for the purposes described in sections 

17 5312, 5315, and 5322.’’; 

18 (B) in paragraph (2), by striking ‘‘(2) Of’’ 

19 and inserting the following: 

20 ‘‘(2) ADA COMPLIANCE.—From’’; 

21 (C) by amending paragraph (3) to read as 

22 follows: 

23 ‘‘(3) SPECIAL DEMONSTRATION INITIATIVES.— 

24 The Secretary may use not more than 25 percent of 

25 the amounts made available under paragraph (1) for 
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1 special demonstration initiatives, subject to terms 

2 that the Secretary determines to be consistent with 

3 this chapter. For a nonrenewable grant of not more 

4 than $100,000, the Secretary shall provide expedited 

5 procedures for complying with the requirements of 

6 this chapter.’’; 

7 (D) in paragraph (4)— 

8 (i) by striking subparagraph (B); and 

9 (ii) by redesignating subparagraph (C) 

10 as subparagraph (B); and 

11 (E) by adding at the end the following: 

12 ‘‘(6) MEDICAL TRANSPORTATION DEMONSTRA13 TION GRANTS.— 

14 ‘‘(A) GRANTS AUTHORIZED.—The Secretary 

15 may award demonstration grants, from funds 

16 made available under paragraph (1), to eligible 

17 entities to provide transportation services to in18 dividuals to access dialysis treatments and other 

19 medical treatments for renal disease. 

20 ‘‘(B) ELIGIBLE ENTITIES.—An entity shall 

21 be eligible to receive a grant under this para22 graph if the entity— 

23 ‘‘(i) meets the conditions described in 

24 section 501(c)(3) of the Internal Revenue 

25 Code of 1986; or 
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1 ‘‘(ii) is an agency of a State or unit 

2 of local government. 

3 ‘‘(C) USE OF FUNDS.—Grant funds received 

4 under this paragraph may be used to provide 

5 transportation services to individuals to access 

6 dialysis treatments and other medical treatments 

7 for renal disease. 

8 ‘‘(D) APPLICATION.— 

9 ‘‘(i) IN GENERAL.—Each eligible entity 

10 desiring a grant under this paragraph shall 

11 submit an application to the Secretary at 

12 such time, at such place, and containing 

13 such information as the Secretary may rea14 sonably require. 

15 ‘‘(ii) SELECTION OF GRANTEES.—In 

16 awarding grants under this paragraph, the 

17 Secretary shall give preference to eligible en18 tities from communities with— 

19 ‘‘(I) high incidence of renal dis20 ease; and 

21 ‘‘(II) limited access to dialysis fa22 cilities. 

23 ‘‘(E) RULEMAKING.—The Secretary shall 

24 issue regulations to implement and administer 
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1 the grant program established under this para2 graph. 

3 ‘‘(F) REPORT.—The Secretary shall submit 

4 a report on the results of the demonstration 

5 projects funded under this paragraph to the 

6 Committee on Banking, Housing, and Urban Af7 fairs of the Senate and the Committee on Trans8 portation and Infrastructure of the House of 

9 Representatives.’’; and 

10 (2) by amending subsection (b) to read as fol11 lows: 

12 ‘‘(b) FEDERAL SHARE.—If there would be a clear and 

13 direct financial benefit to an entity under a grant, contract, 

14 cooperative agreement, or other transaction financed under 

15 subsection (a) or section 5312, 5313, 5315, or 5322, the Sec16 retary shall establish a Federal share consistent with such 

17 benefit.’’. 

18 (c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR

19 SENIOR TRANSPORTATION; ALTERNATIVE FUELS STUDY.— 

20 Section 5314 is amended by adding at the end the following: 

21 ‘‘(c) NATIONAL TECHNICAL ASSISTANCE CENTER FOR

22 SENIOR TRANSPORTATION.— 

23 ‘‘(1) ESTABLISHMENT.—The Secretary shall 

24 award grants to a national not-for-profit organiza-
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1 tion for the establishment and maintenance of a na2 tional technical assistance center. 

3 ‘‘(2) ELIGIBILITY.—An organization shall be eli4 gible to receive the grant under paragraph (1) if the 

5 organization— 

6 ‘‘(A) focuses significantly on serving the 

7 needs of the elderly; 

8 ‘‘(B) has demonstrated knowledge and ex9 pertise in senior transportation policy and plan10 ning issues; 

11 ‘‘(C) has affiliates in a majority of the 

12 States; 

13 ‘‘(D) has the capacity to convene local 

14 groups to consult on operation and development 

15 of senior transportation programs; and 

16 ‘‘(E) has established close working relation17 ships with the Federal Transit Administration 

18 and the Administration on Aging. 

19 ‘‘(3) USE OF FUNDS.—The national technical as20 sistance center established under this section shall— 

21 ‘‘(A) gather best practices from throughout 

22 the country and provide such practices to local 

23 communities that are implementing senior trans24 portation programs; 
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1 ‘‘(B) work with teams from local commu2 nities to identify how they are successfully meet3 ing the transportation needs of senior and any 

4 gaps in services in order to create a plan for an 

5 integrated senior transportation program; 

6 ‘‘(C) provide resources on ways to pay for 

7 senior transportation services; 

8 ‘‘(D) create a web site to publicize and cir9 culate information on senior transportation pro10 grams; 

11 ‘‘(E) establish a clearinghouse for print, 

12 video, and audio resources on senior mobility; 

13 and 

14 ‘‘(F) administer the demonstration grant 

15 program established under paragraph (4). 

16 ‘‘(4) GRANTS AUTHORIZED.— 

17 ‘‘(A) IN GENERAL.—The national technical 

18 assistance center established under this section, 

19 in consultation with the Federal Transit Admin20 istration, shall award senior transportation dem21 onstration grants to— 

22 ‘‘(i) local transportation organizations; 

23 ‘‘(ii) State agencies; 

24 ‘‘(iii) units of local government; and 

25 ‘‘(iv) nonprofit organizations. 
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1 ‘‘(B) USE OF FUNDS.—Grant funds received 

2 under this paragraph may be used to— 

3 ‘‘(i) evaluate the state of transpor4 tation services for senior citizens; 

5 ‘‘(ii) recognize barriers to mobility that 

6 senior citizens encounter in their commu7 nities; 

8 ‘‘(iii) establish partnerships and pro9 mote coordination among community stake10 holders, including public, not-for-profit, and 

11 for-profit providers of transportation serv12 ices for senior citizens; 

13 ‘‘(iv) identify future transportation 

14 needs of senior citizens within local commu15 nities; and 

16 ‘‘(v) establish strategies to meet the 

17 unique needs of healthy and frail senior 

18 citizens. 

19 ‘‘(C) SELECTION OF GRANTEES.—The Sec20 retary shall select grantees under this subsection 

21 based on a fair representation of various geo22 graphical locations throughout the United States. 

23 ‘‘(5) ALLOCATIONS.—From the funds made 

24 available for each fiscal year under subsections 

25 (a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338, 
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1 $3,000,000 shall be allocated to carry out this sub2 section. 

3 ‘‘(d) ALTERNATIVE FUELS STUDY.— 

4 ‘‘(1) STUDY.—The Secretary shall conduct a 

5 study of the actions necessary to facilitate the pur6 chase of increased volumes of alternative fuels (as de7 fined in section 301 of the Energy Policy Act of 1992 

8 (42 U.S.C. 13211)) for use in public transit vehicles 

9 ‘‘(2) SCOPE OF STUDY.—The study conducted 

10 under this subsection shall focus on the incentives nec11 essary to increase the use of alternative fuels in public 

12 transit vehicles, including buses, fixed guideway vehi13 cles, and ferries. 

14 ‘‘(3) CONTENTS.—The study shall consider— 

15 ‘‘(A) the environmental benefits of increased 

16 use of alternative fuels in transit vehicles; 

17 ‘‘(B) existing opportunities available to 

18 transit system operators that encourage the pur19 chase of alternative fuels for transit vehicle oper20 ation; 

21 ‘‘(C) existing barriers to transit system op22 erators that discourage the purchase of alter23 native fuels for transit vehicle operation, includ24 ing situations where alternative fuels that do not 

25 require capital improvements to transit vehicles 
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1 are disadvantaged over fuels that do require such 

2 improvements; and 

3 ‘‘(D) the necessary levels and type of sup4 port necessary to encourage additional use of al5 ternative fuels for transit vehicle operation. 

6 ‘‘(4) RECOMMENDATIONS.—The study shall rec7 ommend regulatory and legislative alternatives that 

8 will result in the increased use of alternative fuels in 

9 transit vehicles. 

10 ‘‘(5) REPORT.—Not later than 1 year after the 

11 date of enactment of the Federal Public Transpor12 tation Act of 2004, the Secretary shall submit the 

13 study completed under this subsection to the Com14 mittee on Banking, Housing, and Urban Affairs of 

15 the Senate and the Committee on Transportation and 

16 Infrastructure of the House of Representatives’’. 

17 (c) CONFORMING AMENDMENTS.— 

18 (1) SECTION HEADING.—The heading for section 

19 5314 is amended to read as follows: 

20 ‘‘§ 5314. National research programs’’. 

21 (2) TABLE OF SECTIONS.—The item relating to 

22 section 5314 in the table of sections for chapter 53 is 

23 amended to read as follows: 

‘‘5314. National research programs.’’. 

24 SEC. 3017. NATIONAL TRANSIT INSTITUTE. 

25 (a) Section 5315 is amended— 
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1 (1) by striking subsections (a) and (b) and in2 serting the following: 

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall award a 

4 grant to Rutgers University to conduct a national transit 

5 institute. 

6 ‘‘(b) DUTIES.— 

7 ‘‘(1) IN GENERAL.—In cooperation with the Fed8 eral Transit Administration, State transportation de9 partments, public transportation authorities, and na10 tional and international entities, the institute estab11 lished pursuant to subsection (a) shall develop and 

12 conduct training programs for Federal, State, and 

13 local transportation employees, United States citizens, 

14 and foreign nationals engaged or to be engaged in 

15 Government-aid public transportation work. 

16 ‘‘(2) TRAINING PROGRAMS.—The training pro17 grams developed under paragraph (1) may include 

18 courses in recent developments, techniques, and proce19 dures related to— 

20 ‘‘(A) intermodal and public transportation 

21 planning; 

22 ‘‘(B) management; 

23 ‘‘(C) environmental factors; 

24 ‘‘(D) acquisition and joint use rights of 

25 way; 
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1 ‘‘(E) engineering and architectural design; 

2 ‘‘(F) procurement strategies for public 

3 transportation systems; 

4 ‘‘(G) turnkey approaches to delivering pub5 lic transportation systems; 

6 ‘‘(H) new technologies; 

7 ‘‘(I) emission reduction technologies; 

8 ‘‘(J) ways to make public transportation 

9 accessible to individuals with disabilities; 

10 ‘‘(K) construction, construction manage11 ment, insurance, and risk management; 

12 ‘‘(L) maintenance; 

13 ‘‘(M) contract administration; 

14 ‘‘(N) inspection; 

15 ‘‘(O) innovative finance; 

16 ‘‘(P) workplace safety; and 

17 ‘‘(Q) public transportation security.’’; and 

18 (2) in subsection (d), by striking ‘‘mass’’ each 

19 place it appears. 

20 SEC. 3018. BUS TESTING FACILITY. 

21 Section 5318 is amended— 

22 (1) in subsection (a)— 

23 (A) by striking ‘‘ESTABLISHMENT.—The 

24 Secretary of Transportation shall establish one 
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1 facility’’ and inserting ‘‘IN GENERAL.—The Sec2 retary shall maintain 1 facility’’; and 

3 (B) by striking ‘‘established by renovating’’ 

4 and inserting ‘‘maintained at’’; and 

5 (2) in subsection (d), by striking ‘‘section 

6 5309(m)(1)(C) of this title’’ and inserting ‘‘para7 graphs (1)(C) and (2)(B) of section 5309(i)’’. 

8 SEC. 3019. BICYCLE FACILITIES. 

9 Section 5319 is amended by striking ‘‘5307(k)’’ and 

10 inserting ‘‘5307(d)(1)(K)’’. 

11 SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT 

12 PROJECT. 

13 Section 5320 is repealed. 

14 SEC. 3021. CRIME PREVENTION AND SECURITY. 

15 Section 5321 is repealed. 

16 SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE. 

17 Section 5323 is amended— 

18 (1) in subsection (a)— 

19 (A) by amending paragraph (1) to read as 

20 follows: 

21 ‘‘(1) IN GENERAL.—Financial assistance pro22 vided under this chapter to a State or a local govern23 mental authority may be used to acquire an interest 

24 in, or to buy property of, a private company engaged 

25 in public transportation, for a capital project for 
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1 property acquired from a private company engaged 

2 in public transportation after July 9, 1964, or to op3 erate a public transportation facility or equipment in 

4 competition with, or in addition to, transportation 

5 service provided by an existing public transportation 

6 company, only if— 

7 ‘‘(A) the Secretary determines that such fi8 nancial assistance is essential to a program of 

9 projects required under sections 5303, 5304, and 

10 5306; 

11 ‘‘(B) the Secretary determines that the pro12 gram provides for the participation of private 

13 companies engaged in public transportation to 

14 the maximum extent feasible; and 

15 ‘‘(C) just compensation under State or local 

16 law will be paid to the company for its franchise 

17 or property.’’; and 

18 (B) in paragraph (2), by striking ‘‘(2)’’ and 

19 inserting the following: 

20 ‘‘(2) LIMITATION.—’’; 

21 (2) by amending subsection (b) to read as fol22 lows: 

23 ‘‘(b) NOTICE AND PUBLIC HEARING.— 

24 ‘‘(1) IN GENERAL.—An application for a grant 

25 under this chapter for a capital project that will sub-
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1 stantially affect a community, or the public transpor2 tation service of a community, shall include, in the 

3 environmental record for the project, evidence that the 

4 applicant has— 

5 ‘‘(A) provided an adequate opportunity for 

6 public review and comment on the project; 

7 ‘‘(B) held a public hearing on the project if 

8 the project affects significant economic, social, or 

9 environmental interests; 

10 ‘‘(C) considered the economic, social, and 

11 environmental effects of the project; and 

12 ‘‘(D) found that the project is consistent 

13 with official plans for developing the urban area. 

14 ‘‘(2) CONTENTS OF NOTICE.—Notice of a hearing 

15 under this subsection— 

16 ‘‘(A) shall include a concise description of 

17 the proposed project; and 

18 ‘‘(B) shall be published in a newspaper of 

19 general circulation in the geographic area the 

20 project will serve.’’; 

21 (3) by amending subsection (c) to read as fol22 lows: 

23 ‘‘(c) NEW TECHNOLOGY.—A grant for financial assist24 ance under this chapter for new technology, including inno25 vative or improved products, techniques, or methods, shall 
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1 be subject to the requirements of section 5309 to the extent 

2 the Secretary determines to be appropriate.’’; 

3 (4) by amending subsection (d) to read as fol4 lows: 

5 ‘‘(d) CONDITIONS ON BUS TRANSPORTATION SERV6 ICE.—Financial assistance under this chapter may be used 

7 to buy or operate a bus only if the recipient agrees to com8 ply with the following conditions on bus transportation 

9 service: 

10 ‘‘(1) CHARTER BUS SERVICE.— 

11 ‘‘(A) IN GENERAL.—Except as provided 

12 under subparagraph (B), a recipient may pro13 vide incidental charter bus service only within 

14 its lawful service area if— 

15 ‘‘(i) the recipient annually publishes, 

16 by electronic and other appropriate means, 

17 a notice— 

18 ‘‘(I) indicating its intent to offer 

19 incidental charter bus service within 

20 its lawful service area; and 

21 ‘‘(II) soliciting notices from pri22 vate bus operators that wish to appear 

23 on a list of carriers offering charter 

24 bus service in that service area; 
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1 ‘‘(ii) the recipient provides private bus 

2 operators with an annual opportunity to 

3 notify the recipient of its desire to appear 

4 on a list of carriers offering charter bus 

5 service in such service area; 

6 ‘‘(iii) upon receiving a request for 

7 charter bus service, the recipient electroni8 cally notifies the private bus operators listed 

9 as offering charter service in that service 

10 area with the name and contact informa11 tion of the requestor and the nature of the 

12 charter service request; and 

13 ‘‘(iv) the recipient does not offer to 

14 provide charter bus service unless no private 

15 bus operator indicates that it is willing and 

16 able to provide the service within a 72-hour 

17 period after the receipt of such notice. 

18 ‘‘(B) EXCEPTION.—A recipient that oper19 ates 2,000 or fewer vehicles in fixed-route peak 

20 hour service may provide incidental charter bus 

21 transportation directly to — 

22 ‘‘(i) local governments; and 

23 ‘‘(ii) social service entities with limited 

24 resources. 
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1 ‘‘(C) IRREGULARLY SCHEDULED EVENTS.— 

2 Service, other than commuter service, by a re3 cipient to irregularly scheduled events, where the 

4 service is conducted in whole or in part outside 

5 the service area of the recipient, regardless of 

6 whether the service is contracted for individually 

7 with passengers, is subject to a rebuttable pre8 sumption that such service is charter service. 

9 ‘‘(2) VIOLATION OF AGREEMENTS.— 

10 ‘‘(A) COMPLAINTS.—A complaint regarding 

11 the violation of a charter bus service agreement 

12 shall be submitted to the Regional Administrator 

13 of the Federal Transit Administration, who 

14 shall— 

15 ‘‘(i) provide a reasonable opportunity 

16 for the recipient to respond to the com17 plaint; 

18 ‘‘(ii) provide the recipient with an op19 portunity for an informal hearing; and 

20 ‘‘(iii) issue a written decision not later 

21 than 60 days after the parties have com22 pleted their submissions. 

23 ‘‘(B) APPEALS.— 

24 ‘‘(i) IN GENERAL.—A decision by the 

25 Regional Administrator may be appealed to 
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1 a panel comprised of the Federal Transit 

2 Administrator, personnel in the Office of the 

3 Secretary of Transportation, and other per4 sons with expertise in surface passenger 

5 transportation issues. 

6 ‘‘(ii) STANDARD OF REVIEW.—The 

7 panel described in clause (i) shall consider 

8 the complaint de novo on all issues of fact 

9 and law. 

10 ‘‘(iii) WRITTEN DECISION.—The ap11 peals panel shall issue a written decision on 

12 an appeal not later than 60 days after the 

13 completion of submissions. This decision 

14 shall be the final order of the agency and 

15 subject to judicial review in district court. 

16 ‘‘(C) CORRECTION.—If the Secretary deter17 mines that a violation of an agreement relating 

18 to the provision of charter service has occurred, 

19 the Secretary shall correct the violation under 

20 terms of the agreement. 

21 ‘‘(D) REMEDIES.—The Secretary may issue 

22 orders to recipients to cease and desist in actions 

23 that violate the agreement, and such orders shall 

24 be binding upon the parties. In addition to any 

25 remedy spelled out in the agreement, if a recipi-
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1 ent has failed to correct a violation within 60 

2 days after the receipt of a notice of violation 

3 from the Secretary, the Secretary shall withhold 

4 from the recipient the lesser of— 

5 ‘‘(i) 5 percent of the financial assist6 ance available to the recipient under this 

7 chapter for the next fiscal year; or 

8 ‘‘(ii) $200,000. 

9 ‘‘(3) REGULATIONS.—Not later than 1 year after 

10 the date of enactment of the Federal Public Transpor11 tation Act of 2004, the Secretary shall issue amended 

12 regulations that— 

13 ‘‘(A) implement this subsection, as revised 

14 by such Act; and 

15 ‘‘(B) impose restrictions, procedures, and 

16 remedies in connection with sightseeing service 

17 by a recipient. 

18 ‘‘(4) PUBLIC NOTICE.—The Secretary shall make 

19 all written decisions, guidance, and other pertinent 

20 materials relating to the procedures in this subsection 

21 available to the public in electronic and other appro22 priate formats in a timely manner.’’; 

23 (5) by striking subsection (e); 

24 (6) by redesignating subsection (f) as subsection 

25 (e); 
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1 (7) in subsection (e), as redesignated— 

2 (A) by striking ‘‘(1)’’ and inserting the fol3 lowing: 

4 ‘‘(1) IN GENERAL.—’’; 

5 (B) by striking paragraph (2); 

6 (C) by striking ‘‘This subsection’’ and in7 serting the following: 

8 ‘‘(2) EXCEPTIONS.—This subsection; and 

9 (D) by adding at the end the following: 

10 ‘‘(3) PENALTY.—If the Secretary determines that 

11 an applicant, governmental authority, or publicly 

12 owned operator has violated the agreement required 

13 under paragraph (1), the Secretary shall bar the ap14 plicant, authority, or operator from receiving Federal 

15 transit assistance in an amount the Secretary deter16 mines to be appropriate.’’; 

17 (8) by inserting after subsection (e) the following: 

18 ‘‘(f) BOND PROCEEDS ELIGIBLE FOR LOCAL SHARE.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding any other 

20 provision of law, a recipient of assistance under sec21 tion 5307 or 5309, may use the proceeds from the 

22 issuance of revenue bonds as part of the local match23 ing funds for a capital project. 

24 ‘‘(2) REIMBURSEMENT BY SECRETARY.—The Sec25 retary may reimburse an eligible recipient for depos-
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1 its of bond proceeds in a debt service reserve that the 

2 recipient established pursuant to section 

3 5302(a)(1)(K) from amounts made available to the re4 cipient under section 5307 or 5309.’’; 

5 (9) in subsection (g)— 

6 (A) by striking ‘‘(f)’’ each place it appears 

7 and inserting ‘‘(e)’’; and 

8 (B) by striking ‘‘103(e)(4) and 142 (a) or 

9 (c)’’ each place it appears and inserting ‘‘133 

10 and 142’’; 

11 (10) by amending subsection (h) to read as fol12 lows: 

13 ‘‘(h) TRANSFER OF LANDS OR INTERESTS IN LANDS

14 OWNED BY THE UNITED STATES.— 

15 (1) REQUEST BY SECRETARY.—If the Secretary 

16 determines that any part of the lands or interests in 

17 lands owned by the United States and made available 

18 as a result of a military base closure is necessary for 

19 transit purposes eligible under this chapter, including 

20 corridor preservation, the Secretary shall submit a re21 quest to the head of the Federal agency supervising 

22 the administration of such lands or interests in lands. 

23 Such request shall include a map showing the portion 

24 of such lands or interests in lands, which is desired 

25 to be transferred for public transportation purposes. 
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1 ‘‘(2) TRANSFER OF LAND.—If 4 months after 

2 submitting a request under paragraph (1), the Sec3 retary does not receive a response from the Federal 

4 agency described in paragraph (1) that certifies that 

5 the proposed appropriation of land is contrary to the 

6 public interest or inconsistent with the purposes for 

7 which such land has been reserved, or if the head of 

8 such agency agrees to the utilization or transfer under 

9 conditions necessary for the adequate protection and 

10 utilization of the reserve, such land or interests in 

11 land may be utilized or transferred to a State, local 

12 governmental authority, or public transportation op13 erator for such purposes and subject to the conditions 

14 specified by such agency. 

15 ‘‘(3) REVERSION.—If at any time the lands or 

16 interests in land utilized or transferred under para17 graph (2) are no longer needed for public transpor18 tation purposes, the State, local governmental author19 ity, or public transportation operator that received 

20 the land shall notify to the Secretary, and such lands 

21 shall immediately revert to the control of the head of 

22 the Federal agency from which the land was origi23 nally transferred.’’; 

24 (11) in subsection (j)(5), by striking ‘‘Intermodal 

25 Surface Transportation Efficiency Act of 1991 (Pub-
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1 lic Law 102–240, 105 Stat. 1914)’’ and inserting 

2 ‘‘Federal Public Transportation Act of 2004’’; 

3 (12) by amending subsection (l) to read as fol4 lows: 

5 ‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001 

6 of title 18 applies to a certificate, submission, or statement 

7 provided under this chapter. The Secretary may terminate 

8 financial assistance under this chapter and seek reimburse9 ment directly, or by offsetting amounts, available under this 

10 chapter, if the Secretary determines that a recipient of such 

11 financial assistance has made a false or fraudulent state12 ment or related act in connection with a Federal transit 

13 program.’’; 

14 (13) in subsection (m), by inserting at the end 

15 the following: ‘‘Requirements to perform preaward 

16 and postdelivery reviews of rolling stock purchases to 

17 ensure compliance with subsection (j) shall not apply 

18 to private nonprofit organizations or to grantees serv19 ing urbanized areas with a population of fewer than 

20 1,000,000.’’; 

21 (14) in subsection (o), by striking ‘‘the Transpor22 tation Infrastructure Finance and Innovation Act of 

23 1998’’ and inserting ‘‘sections 181 through 188 of title 

24 23’’; and 

25 (15) by adding at the end the following: 
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1 ‘‘(p) PROHIBITED USE OF FUNDS.—Grant funds re2 ceived under this chapter may not be used to pay ordinary 

3 governmental or nonproject operating expenses.’’. 

4 SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 

5 (a) IN GENERAL.—Section 5324 is amended to read 

6 as follows: 

7 ‘‘§ 5324. Special provisions for capital projects 

8 ‘‘(a) REAL PROPERTY AND RELOCATION SERVICES.— 

9 Whenever real property is acquired or furnished as a re10 quired contribution incident to a project, the Secretary shall 

11 not approve the application for financial assistance unless 

12 the applicant has made all payments and provided all as13 sistance and assurances that are required of a State agency 

14 under sections 210 and 305 of the Uniform Relocation As15 sistance and Real Property Acquisition Policies Act of 1970 

16 (42 U.S.C. 4630 and 4655). The Secretary must be advised 

17 of specific references to any State law that are believed to 

18 be an exception to section 301 or 302 of such Act (42 U.S.C. 

19 4651 and 4652). 

20 ‘‘(b) ADVANCE REAL PROPERTY ACQUISITIONS.— 

21 (1) IN GENERAL.—The Secretary may partici22 pate in the acquisition of real property for any 

23 project that may use the property if the Secretary de24 termines that external market forces are jeopardizing 
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1 the potential use of the property for the project and 

2 if— 

3 ‘‘(A) there are offers on the open real estate 

4 market to convey that property for a use that is 

5 incompatible with the project under study; 

6 ‘‘(B) there is an imminent threat of devel7 opment or redevelopment of the property for a 

8 use that is incompatible with the project under 

9 study; 

10 ‘‘(C) recent appraisals reflect a rapid in11 crease in the fair market value of the property; 

12 ‘‘(D) the property, because it is located near 

13 an existing transportation facility, is likely to be 

14 developed and to be needed for a future transpor15 tation improvement; or 

16 ‘‘(E) the property owner can demonstrate 

17 that, for health, safety, or financial reasons, re18 taining ownership of the property poses an 

19 undue hardship on the owner in comparison to 

20 other affected property owners and requests the 

21 acquisition to alleviate that hardship. 

22 ‘‘(2) ENVIRONMENTAL REVIEWS.—Property ac23 quired in accordance with this subsection may not be 

24 developed in anticipation of the project until all re-
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1 quired environmental reviews for the project have 

2 been completed. 

3 ‘‘(3) LIMITATION.—The Secretary shall limit the 

4 size and number of properties acquired under this 

5 subsection as necessary to avoid any prejudice to the 

6 Secretary’s objective evaluation of project alternatives. 

7 ‘‘(4) EXEMPTION.—An acquisition under this 

8 section shall be considered an exempt project under 

9 section 176 of the Clean Air Act (42 U.S.C. 7506). 

10 ‘‘(c) RAILROAD CORRIDOR PRESERVATION.— 

11 ‘‘(1) IN GENERAL.—The Secretary may assist an 

12 applicant to acquire railroad right-of-way before the 

13 completion of the environmental reviews for any 

14 project that may use the right-of-way if the acquisi15 tion is otherwise permitted under Federal law. The 

16 Secretary may establish restrictions on such an acqui17 sition as the Secretary determines to be necessary and 

18 appropriate. 

19 ‘‘(2) ENVIRONMENTAL REVIEWS.—Railroad 

20 right-of-way acquired under this subsection may not 

21 be developed in anticipation of the project until all 

22 required environmental reviews for the project have 

23 been completed. 

24 ‘‘(d) CONSIDERATION OF ECONOMIC, SOCIAL, AND EN25 VIRONMENTAL INTERESTS.— 
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1 ‘‘(1) IN GENERAL.—The Secretary may not ap2 prove an application for financial assistance for a 

3 capital project under this chapter unless the Secretary 

4 determines that the project has been developed in ac5 cordance with the National Environmental Policy Act 

6 of 1969 (42 U.S.C. 4321 et seq.). The Secretary’s find7 ings under this paragraph shall be made a matter of 

8 public record. 

9 ‘‘(2) COOPERATION AND CONSULTATION.—In car10 rying out section 5301(e), the Secretary shall cooper11 ate and consult with the Secretary of the Interior and 

12 the Administrator of the Environmental Protection 

13 Agency on each project that may have a substantial 

14 impact on the environment.’’. 

15 (b) CONFORMING AMENDMENT.—The item relating to 

16 section 5324 in the table of sections for chapter 53 is amend17 ed to read as follows: 

‘‘5324. Special provisions for capital projects.’’. 

18 SEC. 3024. CONTRACT REQUIREMENTS. 

19 (a) IN GENERAL.—Section 5325 is amended to read 

20 as follows: 

21 ‘‘§ 5325. Contract requirements 

22 ‘‘(a) COMPETITION.—Recipients of assistance under 

23 this chapter shall conduct all procurement transactions in 

24 a manner that provides full and open competition as deter25 mined by the Secretary. 
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1 ‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN

2 CONTRACTS.— 

3 ‘‘(1) IN GENERAL.—A contract or requirement 

4 for program management, architectural engineering, 

5 construction management, a feasibility study, and 

6 preliminary engineering, design, architectural, engi7 neering, surveying, mapping, or related services for a 

8 project for which Federal assistance is provided under 

9 this chapter shall be awarded in the same manner as 

10 a contract for architectural and engineering services 

11 is negotiated under chapter 11 of title 40, or an 

12 equivalent qualifications-based requirement of a 

13 State. This subsection does not apply to the extent a 

14 State has adopted or adopts by law a formal proce15 dure for procuring those services. 

16 ‘‘(2) ADDITIONAL REQUIREMENTS.—When 

17 awarding a contract described in paragraph (1), re18 cipients of assistance under this chapter shall comply 

19 with the following requirements: 

20 ‘‘(A) Any contract or subcontract awarded 

21 under this chapter shall be performed and au22 dited in compliance with cost principles con23 tained in part 31 of title 48, Code of Federal 

24 Regulations (commonly known as the Federal 

25 Acquisition Regulation). 
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1 ‘‘(B) A recipient of funds under a contract 

2 or subcontract awarded under this chapter shall 

3 accept indirect cost rates established in accord4 ance with the Federal Acquisition Regulation for 

5 1-year applicable accounting periods by a cog6 nizant Federal or State government agency, if 

7 such rates are not currently under dispute. 

8 ‘‘(C) After a firm’s indirect cost rates are 

9 accepted under subparagraph (B), the recipient 

10 of the funds shall apply such rates for the pur11 poses of contract estimation, negotiation, admin12 istration, reporting, and contract payment, and 

13 shall not be limited by administrative or de facto 

14 ceilings. 

15 ‘‘(D) A recipient requesting or using the 

16 cost and rate data described in subparagraph 

17 (C) shall notify any affected firm before such re18 quest or use. Such data shall be confidential and 

19 shall not be accessible or provided by the group 

20 of agencies sharing cost data under this subpara21 graph, except by written permission of the au22 dited firm. If prohibited by law, such cost and 

23 rate data shall not be disclosed under any cir24 cumstances. 
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1 ‘‘(c) EFFICIENT PROCUREMENT.—A recipient may 

2 award a procurement contract under this chapter to other 

3 than the lowest bidder if the award furthers an objective 

4 consistent with the purposes of this chapter, including im5 proved long-term operating efficiency and lower long-term 

6 costs. 

7 ‘‘(d) DESIGN-BUILD PROJECTS.— 

8 ‘‘(1) DEFINED TERM.—As used in this sub9 section, the term ‘design-build project’— 

10 ‘‘(A) means a project under which a recipi11 ent enters into a contract with a seller, firm, or 

12 consortium of firms to design and build an oper13 able segment of a public transportation system 

14 that meets specific performance criteria; and 

15 ‘‘(B) may include an option to finance, or 

16 operate for a period of time, the system or seg17 ment or any combination of designing, building, 

18 operating, or maintaining such system or seg19 ment. 

20 ‘‘(2) FINANCIAL ASSISTANCE FOR CAPITAL

21 COSTS.—Federal financial assistance under this chap22 ter may be provided for the capital costs of a design23 build project after the recipient complies with Govern24 ment requirements. 

25 ‘‘(e) ROLLING STOCK.— 
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1 ‘‘(1) ACQUISITION.—A recipient of financial as2 sistance under this chapter may enter into a contract 

3 to expend that assistance to acquire rolling stock— 

4 ‘‘(A) with a party selected through a com5 petitive procurement process; or 

6 ‘‘(B) based on— 

7 ‘‘(i) initial capital costs; or 

8 ‘‘(ii) performance, standardization, life 

9 cycle costs, and other factors. 

10 ‘‘(2) MULTIYEAR CONTRACTS.—A recipient pro11 curing rolling stock with Federal financial assistance 

12 under this chapter may make a multiyear contract, 

13 including options, to buy not more than 5 years of re14 quirements for rolling stock and replacement parts. 

15 The Secretary shall allow a recipient to act on a co16 operative basis to procure rolling stock under this 

17 paragraph and in accordance with other Federal pro18 curement requirements. 

19 ‘‘(f) EXAMINATION OF RECORDS.—Upon request, the 

20 Secretary and the Comptroller General, or any of their rep21 resentatives, shall have access to and the right to examine 

22 and inspect all records, documents, and papers, including 

23 contracts, related to a project for which a grant is made 

24 under this chapter. 
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1 ‘‘(g) GRANT PROHIBITION.—A grant awarded under 

2 this chapter may not be used to support a procurement that 

3 uses an exclusionary or discriminatory specification. 

4 ‘‘(h) BUS DEALER REQUIREMENTS.—No State law re5 quiring buses to be purchased through in-State dealers shall 

6 apply to vehicles purchased with a grant under this chap7 ter. 

8 ‘‘(i) AWARDS TO RESPONSIBLE CONTRACTORS.— 

9 ‘‘(1) IN GENERAL.—Federal financial assistance 

10 under this chapter may be provided for contracts only 

11 if a recipient awards such contracts to responsible 

12 contractors possessing the ability to successfully per13 form under the terms and conditions of a proposed 

14 procurement. 

15 ‘‘(2) CRITERIA.—Before making an award to a 

16 contractor under paragraph (1), a recipient shall con17 sider— 

18 ‘‘(A) the integrity of the contractor; 

19 ‘‘(B) the contractor’s compliance with pub20 lic policy; 

21 ‘‘(C) the contractor’s past performance, in22 cluding the performance reported in the Con23 tractor Performance Assessment Reports required 

24 under section 5309(m)(4); and 
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1 ‘‘(D) the contractor’s financial and tech2 nical resources.’’. 

3 (b) CONFORMING AMENDMENTS.—Chapter 53 is 

4 amended by striking section 5326. 

5 SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND RE6 VIEW. 

7 (a) PROJECT MANAGEMENT PLAN REQUIREMENTS.— 

8 Section 5327(a) is amended— 

9 (1) in paragraph (11), by striking ‘‘and’’ at the 

10 end; 

11 (2) in paragraph (12), by striking the period at 

12 the end and inserting ‘‘; and’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(13) safety and security management.’’. 

15 (b) LIMITATIONS ON USE OF AVAILABLE AMOUNTS.— 

16 Section 5327(c) is amended— 

17 (1) by amending paragraph (1) to read as fol18 lows: 

19 ‘‘(1) IN GENERAL.—The Secretary may not use 

20 more than 1 percent of amounts made available for 

21 a fiscal year to carry out any of sections 5307 

22 through 5311, 5316, or 5317, or a project under the 

23 National Capital Transportation Act of 1969 (Public 

24 Law 91–143) to make a contract to oversee the con-
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1 struction of major projects under any of sections 5307 

2 through 5311, 5316, or 5317 or under that Act.’’; 

3 (2) in paragraph (2)— 

4 (A) by striking ‘‘(2)’’ and inserting the fol5 lowing: 

6 ‘‘(2) OTHER ALLOWABLE USES.—’’; and 

7 (B) by inserting ‘‘and security’’ after ‘‘safe8 ty’’; and 

9 (3) in paragraph (3), by striking ‘‘(3) The Gov10 ernment shall’’ and inserting the following: 

11 ‘‘(3) FEDERAL SHARE.—Federal funds shall be 

12 used to’’. 

13 SEC. 3026. PROJECT REVIEW. 

14 Section 5328 is amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (1) by striking ‘‘(1) When 

17 the Secretary of Transportation allows a new 

18 fixed guideway project to advance into the alter19 natives analysis stage of project review, the Sec20 retary shall cooperate with the applicant’’ and 

21 inserting the following: 

22 ‘‘(1) ALTERNATIVES ANALYSIS.—The Secretary 

23 shall cooperate with an applicant undertaking an al24 ternatives analysis under subsections (e) and (f) of 

25 section 5309’’; 
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1 (B) in paragraph (2)— 

2 (i) by striking ‘‘(2)’’ and inserting the 

3 following: 

4 ‘‘(2) ADVANCEMENT TO PRELIMINARY ENGINEER5 ING STAGE.—’’; and 

6 (ii) by striking ‘‘is consistent with’’ 

7 and inserting ‘‘meets the requirements of’’; 

8 (C) in paragraph (3)— 

9 (i) by striking ‘‘(3)’’ and inserting the 

10 following: 

11 ‘‘(3) RECORD OF DECISION.—’’; 

12 (ii) by striking ‘‘of construction’’; and 

13 (iii) by adding before the period at the 

14 end the following: ‘‘if the Secretary deter15 mines that the project meets the require16 ments of subsection (e) or (f) of section 

17 5309’’; and 

18 (D) by striking paragraph (4); and 

19 (2) by striking subsection (c). 

20 SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY 

21 RISK. 

22 (a) IN GENERAL.—Section 5329 is amended to read 

23 as follows: 
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1 ‘‘§ 5329. Investigation of safety hazards and security 

2 risks 

3 ‘‘(a) IN GENERAL.—The Secretary may conduct inves4 tigations into safety hazards and security risks associated 

5 with a condition in equipment, a facility, or an operation 

6 financed under this chapter to establish the nature and ex7 tent of the condition and how to eliminate, mitigate, or cor8 rect it. 

9 ‘‘(b) SUBMISSION OF CORRECTIVE PLAN.—If the Sec10 retary establishes that a safety hazard or security risk war11 rants further protective measures, the Secretary shall re12 quire the local governmental authority receiving amounts 

13 under this chapter to submit a plan for eliminating, miti14 gating, or correcting it. 

15 ‘‘(c) WITHHOLDING OF FUNDS.—Financial assistance 

16 under this chapter, in an amount to be determined by the 

17 Secretary, may be withheld until a plan is approved and 

18 carried out. 

19 ‘‘(d) PUBLIC TRANSPORTATION SECURITY.— 

20 ‘‘(1) IN GENERAL.—Not later than 90 days after 

21 the date of enactment of the Federal Public Transpor22 tation Act of 2004, the Secretary shall enter into a 

23 memorandum of understanding with the Secretary of 

24 Homeland Security to define and clarify the respec25 tive roles and responsibilities of the Department of 
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1 Transportation and the Department of Homeland Se2 curity relating to public transportation security. 

3 ‘‘(2) CONTENTS.—The memorandum of under4 standing described in paragraph (1) shall— 

5 ‘‘(A) establish national security standards 

6 for public transportation agencies; 

7 ‘‘(B) establish funding priorities for grants 

8 from the Department of Homeland Security to 

9 public transportation agencies; 

10 ‘‘(C) create a method of coordination with 

11 public transportation agencies on security mat12 ters; and 

13 ‘‘(D) address any other issues determined to 

14 be appropriate by the Secretary and the Sec15 retary of Homeland Security.’’. 

16 (b) CONFORMING AMENDMENT.—The item relating to 

17 section 5329 in the table of sections for chapter 53 is amend18 ed to read as follows: 

‘‘5329. Investigation of safety hazards and security risks.’’. 

19 SEC. 3028. STATE SAFETY OVERSIGHT. 

20 (a) IN GENERAL.—Section 5330 is amended— 

21 (1) by amending the heading to read as follows: 

22 ‘‘§ 5330. Withholding amounts for noncompliance with 

23 State safety oversight requirements’’; 

24 (2) by amending subsection (a) to read as fol25 lows: 
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1 ‘‘(a) APPLICATION.—This section shall only apply to— 

2 ‘‘(1) States that have rail fixed guideway public 

3 transportation systems that are not subject to regula4 tion by the Federal Railroad Administration; and 

5 ‘‘(2) States that are designing rail fixed guide6 way public transportation systems that will not be 

7 subjected to regulation by the Federal Railroad Ad8 ministration.’’; 

9 (3) in subsection (d), by striking ‘‘affected 

10 States’’ and inserting the following: ‘‘affected States— 

11 ‘‘(1) shall ensure uniform safety standards and 

12 enforcement; or 

13 ‘‘(2) may designate’’; and 

14 (4) in subsection (f), by striking ‘‘Not later than 

15 December 18, 1992, the’’ and inserting ‘‘The’’. 

16 (b) CONFORMING AMENDMENT.—The item relating to 

17 section 5330 in the table of sections for chapter 53 is amend18 ed to read as follows: 

‘‘5330. Withholding amounts for noncompliance with State safety oversight requirements.’’. 

19 SEC. 3029. SENSITIVE SECURITY INFORMATION. 

20 Section 40119(b) is amended— 

21 (1) in paragraph (1)(C), by inserting ‘‘, trans22 portation facilities or infrastructure, or transpor23 tation employees’’ before the period at the end; and 

24 (2) by adding at the end the following: 
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1 ‘‘(3) A State or local government may not enact, en2 force, prescribe, issue, or continue in effect any law, regula3 tion, standard, or order to the extent it is inconsistent with 

4 this section or regulations prescribed under this section.’’. 

5 SEC. 3030. TERRORIST ATTACKS AND OTHER ACTS OF VIO6 LENCE AGAINST PUBLIC TRANSPORTATION 

7 SYSTEMS. 

8 (a) IN GENERAL.—Section 1993 of title 18, United 

9 States Code, is amended— 

10 (1) by striking ‘‘mass’’ each place it appears and 

11 inserting ‘‘public’’; 

12 (2) in subsection (a)(5), by inserting ‘‘control13 ling,’’ after ‘‘operating’’; and 

14 (3) in subsection (c)(5), by striking ‘‘5302(a)(7) 

15 of title 49, United States Code,’’ and inserting 

16 ‘‘5302(a) of title 49,’’. 

17 (b) CONFORMING AMENDMENT.—The table of contents 

18 for chapter 97 of title 18, United States Code is amended 

19 by amending the item related to section 1993 to read as 

20 follows: 

‘‘1993. Terrorist attacks and other acts of violence against public transportation 

systems.’’. 

21 SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MIS22 USE TESTING. 

23 Section 5331 is amended— 
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1 (1) in subsection (a)(3), by inserting before the 

2 period at the end the following: ‘‘or sections 2303a, 

3 7101(i), or 7302(e) of title 46. The Secretary may 

4 also decide that a form of public transportation is 

5 covered adequately, for employee alcohol and con6 trolled substances testing purposes, under the alcohol 

7 and controlled substance statutes or regulations of an 

8 agency within the Department of Transportation or 

9 other Federal agency’’; and 

10 (2) in subsection (f), by striking paragraph (3). 

11 SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS. 

12 Section 5333(b) is amended— 

13 (1) in paragraph (3), by striking the period at 

14 the end and inserting ‘‘: Provided, That— 

15 ‘‘(A) the protective period shall not exceed 4 

16 years; and 

17 ‘‘(B) the separation allowance shall not exceed 

18 12 months.’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(4) An arrangement under this subsection shall not 

21 guarantee continuation of employment as a result of a 

22 change in private contractors through competitive bidding 

23 unless such continuation is otherwise required under sub24 paragraph (A), (B), or (D) of paragraph (2). 
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1 ‘‘(5) Fair and equitable arrangements to protect the 

2 interests of employees utilized by the Secretary of Labor for 

3 assistance to purchase like-kind equipment or facilities, and 

4 amendments to existing assistance agreements, shall be cer5 tified without referral. 

6 ‘‘(6) Nothing in this subsection shall affect the level 

7 of protection provided to freight railroad employees.’’. 

8 SEC. 3033. ADMINISTRATIVE PROCEDURES. 

9 Section 5334 is amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (1), by striking ‘‘5309– 

12 5311 of this title’’ and all that follows and in13 serting ‘‘5309 through 5311;’’; 

14 (B) in paragraph (9), by striking ‘‘and’’ at 

15 the end; 

16 (C) in paragraph (10), by striking the pe17 riod at the end and inserting ‘‘; and’’; and 

18 (D) by inserting at the end the following: 

19 ‘‘(11) issue regulations as necessary to carry out 

20 the purposes of this chapter.’’; 

21 (2) by redesignating subsections (b), (c), (d), (e), 

22 (f), (g), (h), (i), and (j) as subsections (c), (d), (e), (f), 

23 (g), (h), (i), (j), and (k), respectively; 

24 (3) by adding after subsection (a) the following: 
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1 ‘‘(b) PROHIBITIONS AGAINST REGULATING OPER2 ATIONS AND CHARGES.— 

3 ‘‘(1) IN GENERAL.—Except as directed by the 

4 President for purposes of national defense or in the 

5 event of a national or regional emergency, the Sec6 retary may not regulate— 

7 ‘‘(A) the operation, routes, or schedules of a 

8 public transportation system for which a grant 

9 is made under this chapter; or 

10 ‘‘(B) the rates, fares, tolls, rentals, or other 

11 charges prescribed by any public or private 

12 transportation provider. 

13 ‘‘(2) COMPLIANCE WITH AGREEMENT.—Nothing 

14 in this subsection shall prevent the Secretary from re15 quiring a recipient of funds under this chapter to 

16 comply with the terms and conditions of its Federal 

17 assistance agreement.’’; and 

18 (4) in subsection (j)(1), as redesignated, by strik19 ing ‘‘carry out section 5312(a) and (b)(1) of this 

20 title’’ and inserting ‘‘advise and assist the Secretary 

21 in carrying out section 5312(a)’’. 

22 SEC. 3034. REPORTS AND AUDITS. 

23 Section 5335 is amended— 

24 (1) by striking subsection (b); and 

25 (2) in subsection (a)— 
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1 (A) in paragraph (1), by striking ‘‘(1)’’; 

2 and 

3 (B) in paragraph (2), by striking ‘‘(2) The 

4 Secretary may make a grant under section 5307 

5 of this title’’ and inserting the following: 

6 ‘‘(b) REPORTING AND UNIFORM SYSTEMS.—The Sec7 retary may award a grant under section 5307 or 5311’’. 

8 SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR 

9 FORMULA GRANTS. 

10 Section 5336 is amended— 

11 (1) by striking subsection (d); 

12 (2) by striking subsection (h); 

13 (3) by striking subsection (k); 

14 (4) by redesignating subsections (a) through (c) 

15 as subsections (b) through (d), respectively; 

16 (5) by adding before subsection (b), as redesig17 nated, the following: 

18 ‘‘(a) APPORTIONMENTS.—Of the amounts made avail19 able for each fiscal year under subsections (a)(1)(C)(vi) and 

20 (b)(2)(L) of section 5338— 

21 ‘‘(1) there shall be apportioned, in fiscal year 

22 2005 and each fiscal year thereafter, $35,000,000 to 

23 certain urbanized areas with populations of less than 

24 200,000 in accordance with subsection (k); and 
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1 ‘‘(2) any amount not apportioned under para2 graph (1) shall be apportioned to urbanized areas in 

3 accordance with subsections (b) through (d).’’; 

4 (6) in subsection (b), as redesignated— 

5 (A) by striking ‘‘Of the amount made avail6 able or appropriated under section 5338(a) of 

7 this title’’ and inserting ‘‘Of the amount appor8 tioned under subsection (a)(3)’’; and 

9 (B) in paragraph (2), by striking ‘‘sub10 sections (b) and (c) of this section’’ and inserting 

11 ‘‘subsections (c) and (d)’’; 

12 (7) in subsection (c)(2), as redesignated, by strik13 ing ‘‘subsection (a)(2) of this section’’ and inserting 

14 ‘‘subsection (b)(2)’’; 

15 (8) in subsection (d), as redesignated, by striking 

16 ‘‘subsection (a)(2) of this section’’ and inserting ‘‘sub17 section (b)(2)’’; 

18 (9) in subsection (e)(1), by striking ‘‘subsections 

19 (a) and (h)(2) of section 5338 of this title’’ and in20 serting ‘‘subsections (a) and (b) of section 5338’’; 

21 (10) in subsection (g), by striking ‘‘subsection 

22 (a)(1) of this section’’ each place it appears and in23 serting ‘‘subsection (b)(1)’’; and 

24 (11) by adding at the end the following: 
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1 ‘‘(k) SMALL TRANSIT INTENSIVE CITIES FACTORS.— 

2 The amount apportioned under subsection (a)(1) shall be 

3 apportioned to urbanized areas as follows: 

4 ‘‘(1) The Secretary shall calculate a factor equal 

5 to the sum of revenue vehicle hours operated within 

6 urbanized areas with a population of between 200,000 

7 and 1,000,000 divided by the sum of the population 

8 of all such urbanized areas. 

9 ‘‘(2) The Secretary shall designate as eligible for 

10 an apportionment under this subsection all urbanized 

11 areas with a population of under 200,000 for which 

12 the number of revenue vehicle hours operated within 

13 the urbanized area divided by the population of the 

14 urbanized area exceeds the factor calculated under 

15 paragraph (1). 

16 ‘‘(3) For each urbanized area qualifying for an 

17 apportionment under paragraph (2), the Secretary 

18 shall calculate an amount equal to the product of the 

19 population of that urbanized area and the factor cal20 culated under paragraph (1). 

21 ‘‘(4) For each urbanized area qualifying for an 

22 apportionment under paragraph (2), the Secretary 

23 shall calculate an amount equal to the difference be24 tween the number of revenue vehicle hours within that 
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1 urbanized area less the amount calculated in para2 graph (3). 

3 ‘‘(5) Each urbanized area qualifying for an ap4 portionment under paragraph (2) shall receive an 

5 amount equal to the amount to be apportioned under 

6 this subsection multiplied by the amount calculated 

7 for that urbanized area under paragraph (4) divided 

8 by the sum of the amounts calculated under para9 graph (4) for all urbanized areas qualifying for an 

10 apportionment under paragraph (2). 

11 ‘‘(l) STUDY ON INCENTIVES IN FORMULA PRO12 GRAMS.— 

13 ‘‘(1) STUDY.—The Secretary shall conduct a 

14 study to assess the feasibility and appropriateness of 

15 developing and implementing an incentive funding 

16 system under sections 5307 and 5311 for operators of 

17 public transportation. 

18 ‘‘(2) REPORT.— 

19 ‘‘(A) IN GENERAL.—Not later than 1 year 

20 after the date of enactment of the Federal Public 

21 Transportation Act of 2004, the Secretary shall 

22 submit a report on the results of the study con23 ducted under paragraph (1) to the Committee on 

24 Banking, Housing, and Urban Affairs of the 

25 Senate and the Committee on Transportation 
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1 and Infrastructure of the House of Representa2 tives. 

3 ‘‘(B) CONTENTS.—The report submitted 

4 under subparagraph (A) shall include— 

5 ‘‘(i) an analysis of the availability of 

6 appropriate measures to be used as a basis 

7 for the distribution of incentive payments; 

8 ‘‘(ii) the optimal number and size of 

9 any incentive programs; 

10 ‘‘(iii) what types of systems should 

11 compete for various incentives; 

12 ‘‘(iv) how incentives should be distrib13 uted; and 

14 ‘‘(v) the likely effects of the incentive 

15 funding system.’’. 

16 SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MOD17 ERNIZATION. 

18 Section 5337 is amended— 

19 (1) in subsection (a), by striking ‘‘for each of fis20 cal years 1998 through 2003’’; and 

21 (2) by striking ‘‘section 5336(b)(2)(A)’’ each 

22 place it appears and inserting ‘‘section 

23 5336(c)(2)(A)’’. 

24 SEC. 3037. AUTHORIZATIONS. 

25 Section 5338 is amended to read as follows: 
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1 ‘‘§ 5338. Authorizations 

2 ‘‘(a) FISCAL YEAR 2004.— 

3 ‘‘(1) FORMULA GRANTS.— 

4 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

5 $3,053,079,920 shall be available from the Mass 

6 Transit Account of the Highway Trust Fund to 

7 carry out sections 5307, 5309, 5310, and 5311 of 

8 this chapter and section 3038 of the Transpor9 tation Equity Act for the 21st Century (49 

10 U.S.C. 5310 note). 

11 ‘‘(B) GENERAL FUND.—In addition to the 

12 amounts made available under subparagraph 

13 (A), there are authorized to be appropriated 

14 $763,269,980 for fiscal year 2004 to carry out 

15 sections 5307, 5309, 5310, and 5311 of this chap16 ter and section 3038 of the Transportation Eq17 uity Act for the 21st Century (49 U.S.C. 5310 

18 note). 

19 ‘‘(C) ALLOCATION OF FUNDS.—Of the 

20 amounts made available or appropriated under 

21 this paragraph— 

22 ‘‘(i) $4,821,335 shall be available to the 

23 Alaska Railroad for improvements to its 

24 passenger operations under section 5307; 

25 ‘‘(ii) $6,908,995 shall be available to 

26 provide over-the-road bus accessibility 
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1 grants under section 3038 of the Transpor2 tation Equity Act for the 21st Century (49 

3 U.S.C. 5310 note); 

4 ‘‘(iii) $90,117,950 shall be available to 

5 provide transportation services to elderly 

6 individuals and individuals with disabil7 ities under section 5310; 

8 ‘‘(iv) $239,188,058 shall be available to 

9 provide financial assistance for other than 

10 urbanized areas under section 5311; 

11 ‘‘(v) $3,425,608,562 shall be available 

12 to provide financial assistance for urban13 ized areas under section 5307; and 

14 ‘‘(vi) $49,705,000 shall be available to 

15 provide financial assistance for buses and 

16 bus facilities under section 5309.. 

17 ‘‘(2) JOB ACCESS AND REVERSE COMMUTE.— 

18 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

19 $99,410,000 shall be available from the Mass 

20 Transit Account of the Highway Trust Fund to 

21 carry out section 3037 of the Transportation Eq22 uity Act for the 21st Century (49 U.S.C. 5309 

23 note). 

24 ‘‘(B) GENERAL FUND.—In addition to the 

25 amounts made available under paragraph (A), 
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1 there are authorized to be appropriated 

2 $24,852,500 for fiscal year 2004 to carry out sec3 tion 3037 of the Transportation Equity Act of 

4 the 21st Century (49 U.S.C. 5309 note). 

5 ‘‘(3) CAPITAL PROGRAM GRANTS.— 

6 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

7 $2,495,191,000 shall be available from the Mass 

8 Transit Account of the Highway Trust Fund to 

9 carry out section 5309. 

10 ‘‘(B) GENERAL FUND.—In addition to the 

11 amounts made available under subparagraph 

12 (A), there are authorized to be appropriated 

13 $623,797,750 for fiscal year 2004 to carry out 

14 section 5309. 

15 ‘‘(4) PLANNING.— 

16 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

17 $58,254,260 shall be available from the Mass 

18 Transit Account of the Highway Trust Fund to 

19 carry out section 5308. 

20 ‘‘(B) GENERAL FUND.—In addition to the 

21 amounts made available under subparagraph 

22 (A), there are authorized to be appropriated 

23 $14,315,040 for fiscal year 2004 to carry out sec24 tion 5308. 
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1 ‘‘(C) ALLOCATION OF FUNDS.—Of the 

2 amounts made available or appropriated under 

3 this paragraph— 

4 ‘‘(i) 82.72 percent shall be allocated for 

5 metropolitan planning under section 

6 5308(c); and 

7 ‘‘(ii) 17.28 percent shall be allocated 

8 for State planning under section 5308(d). 

9 ‘‘(5) RESEARCH.— 

10 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

11 $41,951,020 shall be available from the Mass 

12 Transit Account of the Highway Trust Fund to 

13 carry out sections 5311(b), 5312, 5313, 5314, 

14 5315, and 5322. 

15 ‘‘(B) GENERAL FUND.—In addition to the 

16 amounts made available under subparagraph 

17 (A), there are authorized to be appropriated 

18 $10,736,280 for fiscal year 2004 to carry out sec19 tions 5311(b), 5312, 5313, 5314, 5315, and 5322. 

20 ‘‘(C) ALLOCATION OF FUNDS.—Of the funds 

21 made available or appropriated under this para22 graph— 

23 ‘‘(i) not less than $3,976,400 shall be 

24 available to carry out programs of the Na25 tional Transit Institute under section 5315; 
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1 ‘‘(ii) not less than $5,219,025 shall be 

2 available to carry out section 5311(b)(2); 

3 ‘‘(iii) not less than $8,201,325 shall be 

4 available to carry out section 5313; and 

5 ‘‘(iv) the remainder shall be available 

6 to carry out national research and tech7 nology programs under sections 5312, 5314, 

8 and 5322. 

9 ‘‘(6) UNIVERSITY TRANSPORTATION RE10 SEARCH.— 

11 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

12 $4,771,680 shall be available from the Mass 

13 Transit Account of the Highway Trust Fund to 

14 carry out sections 5505 and 5506. 

15 ‘‘(B) GENERAL FUND.—In addition to 

16 amounts made available under subparagraph 

17 (A), there are authorized to be appropriated 

18 $1,192,920 for fiscal year 2004 to carry out sec19 tions 5505 and 5506. 

20 ‘‘(C) ALLOCATION OF FUNDS.—Of the 

21 amounts made available or appropriated under 

22 this paragraph— 

23 ‘‘(i) $1,988,200 shall be available for 

24 grants under 5506(f)(5) to the institution 

25 identified in section 5505(j)(3)(E), as in ef-
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1 fect on the day before the date of enactment 

2 of the Federal Public Transportation Act of 

3 2004; 

4 ‘‘(ii) $1,988,200 shall be available for 

5 grants under section 5505(d) to the institu6 tion identified in section 5505(j)(4)(A), as 

7 in effect on the date specified in clause (i); 

8 and 

9 ‘‘(iii) $1,988,200 shall be available for 

10 grants under section 5505(d) to the institu11 tion identified in section 5505(j)(4)(F), as 

12 in effect on the date specified in subclause 

13 (I). 

14 ‘‘(C) SPECIAL RULE.—Nothing in this 

15 paragraph shall be construed to limit the trans16 portation research conducted by the centers re17 ceiving financial assistance under this section. 

18 ‘‘(7) ADMINISTRATION.— 

19 ‘‘(A) TRUST FUND.—For fiscal year 2004, 

20 $60,043,640 shall be available from the Mass 

21 Transit Account of the Highway Trust Fund to 

22 carry out section 5334. 

23 ‘‘(B) GENERAL FUND.—In addition to amounts 

24 made available under subparagraph (A), there are 
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1 authorized to be appropriated $15,010,910 for fiscal 

2 year 2004 to carry out section 5334. 

3 ‘‘(8) GRANTS AS CONTRACTUAL OBLIGATIONS.— 

4 ‘‘(A) GRANTS FINANCED FROM HIGHWAY TRUST

5 FUND.—A grant or contract that is approved by the 

6 Secretary and financed with amounts made available 

7 under paragraph (1)(A), (2)(A), (3)(A), (4)(A), 

8 (5)(A), (6)(A), or (7)(A) is a contractual obligation of 

9 the United States Government to pay the Federal 

10 share of the cost of the project. 

11 ‘‘(B) GRANTS FINANCED FROM GENERAL

12 FUND.—A grant or contract that is approved by 

13 the Secretary and financed with amounts appro14 priated in advance under paragraph (1)(B), 

15 (2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) 

16 is a contractual obligation of the United States 

17 Government to pay the Federal share of the cost 

18 of the project only to the extent that amounts are 

19 appropriated for such purpose by an Act of Con20 gress. 

21 ‘‘(9) AVAILABILITY OF AMOUNTS.—Amounts 

22 made available or appropriated under paragraphs (1) 

23 through (6) shall remain available until expended.’’. 

24 ‘‘(b) FORMULA GRANTS AND RESEARCH.— 
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1 ‘‘(1) IN GENERAL.—There shall be available from 

2 the Mass Transit Account of the Highway Trust Fund 

3 to carry out sections 5307, 5308, 5309, 5310 through 

4 5316, 5322, 5335, 5340, and 5505 of this title, and 

5 sections 3037 and 3038 of the Federal Transit Act of 

6 1998 (112 Stat. 387 et seq.)— 

7 ‘‘(A) $6,262,600,000 for fiscal year 2005; 

8 ‘‘(B) $6,577,629,000 for fiscal year 2006; 

9 ‘‘(C) $6,950,400,000 for fiscal year 2007; 

10 ‘‘(D) $7,594,760,000 for fiscal year 2008; 

11 and 

12 ‘‘(E) $8,275,320,000 for fiscal year 2009. 

13 ‘‘(2) ALLOCATION OF FUNDS.—Of the amounts 

14 made available under paragraph (1) for each fiscal 

15 year— 

16 ‘‘(A) 0.092 percent shall be available for 

17 grants to the Alaska Railroad under section 5307 

18 for improvements to its passenger operations; 

19 ‘‘(B) 1.75 percent shall be available to carry 

20 out section 5308; 

21 ‘‘(C) 2.05 percent shall be available to pro22 vide financial assistance for job access and re23 verse commute projects under section 3037 of the 

24 Federal Transit Act of 1998 (49 U.S.C. 5309 

25 note); 
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1 ‘‘(D) 3.00 percent shall be available to pro2 vide financial assistance for services for elderly 

3 persons and persons with disabilities under sec4 tion 5310; 

5 ‘‘(E) 0.125 percent shall be available to 

6 carry out section 3038 of the Transportation Eq7 uity Act for the 21st Century (49 U.S.C. 5310 

8 note); 

9 ‘‘(F) 6.25 percent shall be available to pro10 vide financial assistance for other than urban11 ized areas under section 5311; 

12 ‘‘(G) 0.89 percent shall be available to carry 

13 out transit cooperative research programs under 

14 section 5313, the National Transit Institute 

15 under section 5315, university research centers 

16 under section 5505, and national research pro17 grams under sections 5312, 5313, 5314, and 

18 5322, of which— 

19 ‘‘(i) 17.0 percent shall be allocated to 

20 carry out transit cooperative research pro21 grams under section 5313; 

22 ‘‘(ii) 7.5 percent shall be allocated to 

23 carry out programs under the National 

24 Transit Institute under section 5315, in-
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1 cluding not more than $1,000,000 to carry 

2 out section 5315(a)(16); 

3 ‘‘(iii) 11.0 percent shall be allocated to 

4 carry out the university centers program 

5 under section 5505; and 

6 ‘‘(iv) any funds made available under 

7 this subparagraph that are not allocated 

8 under clauses (i) through (iii) shall be allo9 cated to carry out national research pro10 grams under sections 5312, 5313, 5314, and 

11 5322; 

12 ‘‘(H) $25,000,000 shall be available for each 

13 of the fiscal years 2005 through 2009 to carry 

14 out section 5316; 

15 ‘‘(I) there shall be available to carry out 

16 section 5335— 

17 ‘‘(i) $3,700,000 in fiscal year 2005; 

18 ‘‘(ii) $3,900,000 in fiscal year 2006; 

19 ‘‘(iii) $4,200,000 in fiscal year 2007; 

20 ‘‘(iv) $4,600,000 in fiscal year 2008; 

21 and 

22 ‘‘(v) $5,000,000 in fiscal year 2009; 

23 ‘‘(J) 6.25 percent shall be allocated in ac24 cordance with section 5340 to provide financial 

25 assistance for urbanized areas under section 
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1 5307 and other than urbanized areas under sec2 tion 5311; and 

3 ‘‘(K) 22.0 percent shall be allocated in ac4 cordance with section 5337 to provide financial 

5 assistance under section 5309(i)(3); and 

6 ‘‘(L) any amounts not made available 

7 under subparagraphs (A) through (K) shall be 

8 allocated in accordance with section 5336 to pro9 vide financial assistance for urbanized areas 

10 under section 5307. 

11 ‘‘(3) UNIVERSITY CENTERS PROGRAM.— 

12 ‘‘(A) ALLOCATION.—Of the amounts allo13 cated under paragraph (2)(G)(iii), $1,000,000 

14 shall be available in each of the fiscal years 2005 

15 through 2009 for Morgan State University to 

16 provide transportation research, training, and 

17 curriculum development. 

18 ‘‘(B) REQUIREMENTS.—The university spec19 ified under subparagraph (A) shall be considered 

20 a University Transportation Center under sec21 tion 510 of title 23, and shall be subject to the 

22 requirements under subsections (c), (d), (e), and 

23 (f) of such section. 

24 ‘‘(C) REPORT.—In addition to the report 

25 required under section 510(e)(3) of title 23, the 
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1 university specified under subparagraph (A) 

2 shall annually submit a report to the Secretary 

3 that describes the university’s contribution to 

4 public transportation. 

5 ‘‘(4) BUS GRANTS.—In addition to the amounts 

6 made available under paragraph (1), there shall be 

7 available from the Mass Transit Account of the High8 way Trust Fund to carry out section 5309(i)(2)(B)— 

9 ‘‘(A) $839,829,000 for fiscal year 2005; 

10 ‘‘(B) $882,075,000 for fiscal year 2006; 

11 ‘‘(C) $932,064,000 for fiscal year 2007; 

12 ‘‘(D) $1,018,474,000 for fiscal year 2008; 

13 and 

14 ‘‘(E) $1,109,739,000 for fiscal year 2009. 

15 ‘‘(c) MAJOR CAPITAL INVESTMENT GRANTS.—There 

16 are authorized to be appropriated to carry out section 

17 5309(i)(2)(A)— 

18 ‘‘(1) $1,461,072,000 for fiscal year 2005; 

19 ‘‘(2) $1,534,568,000 for fiscal year 2006; 

20 ‘‘(3) $1,621,536,000 for fiscal year 2007; 

21 ‘‘(4) $1,771,866,000 for fiscal year 2008; and 

22 ‘‘(5) $1,930,641,000 for fiscal year 2009. 

23 ‘‘(d) ADMINISTRATION.—There shall be available from 

24 the Mass Transit Account of the Highway Trust Fund to 

25 carry out section 5334— 
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1 ‘‘(1) $86,500,000 for fiscal year 2005; 

2 ‘‘(2) $90,851,000 for fiscal year 2006; 

3 ‘‘(3) $96,000,000 for fiscal year 2007; 

4 ‘‘(4) $104,900,000 for fiscal year 2008; and 

5 ‘‘(5) $114,300,000 for fiscal year 2009. 

6 ‘‘(e) GRANTS AS CONTRACTUAL OBLIGATIONS.— 

7 ‘‘(1) MASS TRANSIT ACCOUNT FUNDS.—A grant 

8 or contract approved by the Secretary that is fi9 nanced with amounts made available under sub10 section (b)(1) or (d) is a contractual obligation of the 

11 United States Government to pay the Federal share 

12 of the cost of the project. 

13 ‘‘(2) APPROPRIATED FUNDS.—A grant or con14 tract approved by the Secretary that is financed with 

15 amounts made available under subsection (b)(2) or (c) 

16 is a contractual obligation of the United States Gov17 ernment to pay the Federal share of the cost of the 

18 project only to the extent that amounts are appro19 priated in advance for such purpose by an Act of 

20 Congress. 

21 ‘‘(f) AVAILABILITY OF AMOUNTS.—Amounts made 

22 available by or appropriated under subsections (b) and (c) 

23 shall remain available until expended.’’. 
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1 SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES 

2 FORMULA FACTORS. 

3 (a) IN GENERAL.—Chapter 53 is amended by adding 

4 at the end the following: 

5 ‘‘§ 5340. Apportionments based on growing States and 

6 high density State formula factors 

7 ‘‘(a) ALLOCATION.—Of the amounts made available for 

8 each fiscal year under section 5338(b)(2)(J), the Secretary 

9 shall apportion— 

10 ‘‘(1) 50 percent to States and urbanized areas in 

11 accordance with subsection (b); and 

12 ‘‘(2) 50 percent to States and urbanized areas in 

13 accordance with subsection (c). 

14 ‘‘(b) GROWING STATE APPORTIONMENTS.— 

15 ‘‘(1) APPORTIONMENT AMONG STATES.—The 

16 amounts apportioned under paragraph (a)(1) shall 

17 provide each State with an amount equal to the total 

18 amount apportioned multiplied by a ratio equal to 

19 the population of that State forecast for the year that 

20 is 15 years after the most recent decennial census, di21 vided by the total population of all States forecast for 

22 the year that is 15 years after the most recent decen23 nial census. Such forecast shall be based on the popu24 lation trend for each State between the most recent 

25 decennial census and the most recent estimate of pop26 ulation made by the Secretary of Commerce. 
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1 ‘‘(2) APPORTIONMENTS BETWEEN URBANIZED

2 AREAS AND OTHER THAN URBANIZED AREAS IN EACH

3 STATE.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall ap5 portion amounts to each State under paragraph 

6 (1) so that urbanized areas in that State receive 

7 an amount equal to the amount apportioned to 

8 that State multiplied by a ratio equal to the sum 

9 of the forecast population of all urbanized areas 

10 in that State divided by the total forecast popu11 lation of that State. In making the apportion12 ment under this subparagraph, the Secretary 

13 shall utilize any available forecasts made by the 

14 State. If no forecasts are available, the Secretary 

15 shall utilize data on urbanized areas and total 

16 population from the most recent decennial cen17 sus. 

18 ‘‘(B) REMAINING AMOUNTS.—Amounts re19 maining for each State after apportionment 

20 under subparagraph (A) shall be apportioned to 

21 that State and added to the amount made avail22 able for grants under section 5311. 

23 ‘‘(3) APPORTIONMENTS AMONG URBANIZED

24 AREAS IN EACH STATE.—The Secretary shall appor25 tion amounts made available to urbanized areas in 
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1 each State under subsection (b)(2)(A) so that each ur2 banized area receives an amount equal to the amount 

3 apportioned under subsection (b)(2)(A) multiplied by 

4 a ratio equal to the population of each urbanized area 

5 divided by the sum of populations of all urbanized 

6 areas in the State. Amounts apportioned to each ur7 banized area shall be added to amounts apportioned 

8 to that urbanized area under section 5336, and made 

9 available for grants under section 5307. 

10 ‘‘(c) HIGH DENSITY STATE APPORTIONMENTS.— 

11 Amounts to be apportioned under subsection (a)(2) shall be 

12 apportioned as follows: 

13 ‘‘(1) ELIGIBLE STATES.—The Secretary shall 

14 designate as eligible for an apportionment under this 

15 subsection all States with a population density in ex16 cess of 370 persons per square mile. 

17 ‘‘(2) STATE URBANIZED LAND FACTOR.—For 

18 each State qualifying for an apportionment under 

19 paragraph (1), the Secretary shall calculate an 

20 amount equal to the product of the urban land area 

21 of urbanized areas in the State times 370 persons per 

22 square mile. 

23 ‘‘(3) STATE APPORTIONMENT FACTOR.—For each 

24 State qualifying for an apportionment under para25 graph (1), the Secretary shall calculate an amount 
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1 equal to the difference between the total population of 

2 the State less the amount calculated in paragraph (2). 

3 ‘‘(4) STATE APPORTIONMENT.—Each State 

4 qualifying for an apportionment under paragraph (1) 

5 shall receive an amount equal to the amount to be ap6 portioned under this subsection multiplied by the 

7 amount calculated for the State under paragraph (3) 

8 divided by the sum of the amounts calculated under 

9 paragraph (3) for all States qualifying for an appor10 tionment under paragraph (1). 

11 ‘‘(5) APPORTIONMENTS BETWEEN URBANIZED

12 AREAS AND OTHER THAN URBANIZED AREAS IN EACH

13 STATE.— 

14 ‘‘(A) IN GENERAL.—The Secretary shall ap15 portion amounts apportioned to each State 

16 under paragraph (4) so that urbanized areas in 

17 that State receive an amount equal to the 

18 amount apportioned to that State multiplied by 

19 a ratio equal to the sum of the population of all 

20 urbanized areas in that State divided by the 

21 total population of that State. 

22 ‘‘(B) REMAINING AMOUNTS.—Amounts re23 maining for each State after apportionment 

24 under subparagraph (a) shall be apportioned to 
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1 that State and added to the amount made avail2 able for grants under section 5311. 

3 ‘‘(6) APPORTIONMENTS AMONG URBANIZED

4 AREAS IN EACH STATE.—The Secretary shall appor5 tion amounts made available to urbanized areas in 

6 each State under subsection (c)(5)(A) so that each ur7 banized area receives an amount equal to the amount 

8 apportioned under subsection (c)(5)(A) multiplied by 

9 a ratio equal to the population of each urbanized area 

10 divided by the sum of populations of all urbanized 

11 areas in the State. Amounts apportioned to each ur12 banized area shall be added to amounts apportioned 

13 to that urbanized area under section 5336, and made 

14 available for grants under section 5307.’’. 

15 (b) CONFORMING AMENDMENT.—The table of sections 

16 for chapter 53 is amended by adding at the end the fol17 lowing: 

‘‘5340. Apportionments based on growing States and high density States formula 

factors.’’. 

18 SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS. 

19 Section 3037 of the Federal Transit Act of 1998 (49 

20 U.S.C. 5309 note) is amended— 

21 (1) in subsection (b)— 

22 (A) in paragraph (1)— 

23 (i) by striking ‘‘means an individual’’ 

24 and inserting the following: ‘‘means— 
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HR 3550 EAS 

1 ‘‘(A) an individual’’; and 

2 (ii) by striking the period at the end 

3 and inserting ‘‘; or 

4 ‘‘(B) an individual who is eligible for as5 sistance under the State program of Temporary 

6 Assistance to Needy Families funded under part 

7 A of title IV of the Social Security Act (42 

8 U.S.C. 601 et. seq.) in the State in which the re9 cipient of a grant under this section is located.’’; 

10 and 

11 (B) in paragraph (2), by striking ‘‘develop12 ment of’’ each place it appears and inserting 

13 ‘‘development and provision of’’; 

14 (2) in subsection (i), by amending paragraph (2) 

15 to read as follows: 

16 ‘‘(2) COORDINATION.— 

17 ‘‘(A) IN GENERAL.—The Secretary shall co18 ordinate activities under this section with related 

19 activities under programs of other Federal de20 partments and agencies. 

21 ‘‘(B) CERTIFICATION.—A recipient of funds 

22 under this section shall certify that— 

23 ‘‘(i) the project has been derived from 

24 a locally developed, coordinated public tran25 sit human services transportation plan; and 
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1 ‘‘(ii) the plan was developed through a 

2 process that included representatives of pub3 lic, private, and nonprofit transportation 

4 and human services providers and partici5 pation by the public.’’; 

6 (3) by amending subsection (j) to read as follows: 

7 ‘‘(j) GRANT REQUIREMENTS.— 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) URBANIZED AREAS.—A grant awarded 

10 under this section to a public agency or private 

11 company engaged in public transportation in an 

12 urbanized area shall be subject to the all of the 

13 terms and conditions to which a grant awarded 

14 under section 5307 of title 49, United States 

15 Code, is subject, to the extent the Secretary con16 siders appropriate. 

17 ‘‘(B) OTHER THAN URBANIZED AREAS.—A 

18 grant awarded under this section to a public 

19 agency or a private company engaged in public 

20 transportation in an area other than urbanized 

21 areas shall be subject to all of the terms and con22 ditions to which a grant awarded under section 

23 5311 of title 49, United States Code, is subject, 

24 to the extent the Secretary considers appropriate. 
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1 ‘‘(C) NONPROFIT ORGANIZATIONS.—A grant 

2 awarded under this section to a private non3 profit organization shall be subject to all of the 

4 terms and conditions to which a grant made 

5 under section 5310 of title 49, United States 

6 Code, is subject, to the extent the Secretary con7 siders appropriate. 

8 ‘‘(2) SPECIAL WARRANTY.— 

9 ‘‘(A) IN GENERAL.—Section 5333(b) of title 

10 49, United States Code, shall apply to grants 

11 under this section if the Secretary of Labor uti12 lizes a Special Warranty that provides a fair 

13 and equitable arrangement to protect the inter14 ests of employees. 

15 ‘‘(B) WAIVER.—The Secretary may waive 

16 the applicability of the Special Warranty under 

17 subparagraph (A) for private non-profit recipi18 ents on a case-by-case basis as the Secretary con19 siders appropriate.’’; and 

20 (4) by striking subsections (k) and (l). 

21 SEC. 3040. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM. 

22 (a) SECTION HEADING.—The section heading for sec23 tion 3038 of the Federal Transit Act of 1998 (49 U.S.C. 

24 5310 note), is amended to read as follows: 
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HR 3550 EAS 

1 ‘‘SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILITY PRO2 GRAM.’’. 

3 (b) FUNDING.—Section 3038(g) of the Federal Transit 

4 Act of 1998 (49 U.S.C. 5310 note) is amended to read as 

5 follows: 

6 ‘‘(g) FUNDING.—Of the amounts made available for 

7 each fiscal year under subsections (a)(1)(C)(iii) and 

8 (b)(2)(E) of section 5338 of title 49, United States Code— 

9 ‘‘(1) 75 percent shall be available, and shall re10 main available until expended, for operators of over11 the-road buses, used substantially or exclusively in 

12 intercity, fixed-route over-the-road bus service, to fi13 nance the incremental capital and training costs of 

14 the Department of Transportation’s final rule regard15 ing accessibility of over-the-road buses; and 

16 ‘‘(2) 25 percent shall be available, and shall re17 main available until expended, for operators of over18 the-road bus service not described in paragraph (1), 

19 to finance the incremental capital and training costs 

20 of the Department of Transportation’s final rule re21 garding accessibility of over-the-road buses.’’. 

22 (b) CONFORMING AMENDMENT.—The item relating to 

23 section 3038 in the table of contents for the Transportation 

24 Equity Act for the 21st Century (Public Law 105–178) is 

25 amended to read as follows: 

‘‘Sec. 3038. Over-the-road bus accessibility program.’’. 
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HR 3550 EAS 

1 SEC. 3041. ALTERNATIVE TRANSPORTATION IN PARKS AND 

2 PUBLIC LANDS. 

3 (a) IN GENERAL.—Chapter 53 is amended by insert4 ing after section 5315 the following: 

5 ‘‘§ 5316. Alternative transportation in parks and pub6 lic lands 

7 ‘‘(a) IN GENERAL.— 

8 ‘‘(1) AUTHORIZATION.— 

9 ‘‘(A) IN GENERAL.—The Secretary, in con10 sultation with the Secretary of the Interior, may 

11 award a grant or enter into a contract, coopera12 tive agreement, interagency agreement, 

13 intraagency agreement, or other transaction to 

14 carry out a qualified project under this section 

15 to enhance the protection of America’s National 

16 Parks and public lands and increase the enjoy17 ment of those visiting the parks and public lands 

18 by ensuring access to all, including persons with 

19 disabilities, improving conservation and park 

20 and public land opportunities in urban areas 

21 through partnering with state and local govern22 ments, and improving park and public land 

23 transportation infrastructure. 

24 ‘‘(B) CONSULTATION WITH OTHER AGEN25 CIES.—To the extent that projects are proposed 

26 or funded in eligible areas that are not within 
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HR 3550 EAS 

1 the jurisdiction of the Department of the Inte2 rior, the Secretary of the Interior shall consult 

3 with the heads of the relevant Federal land man4 agement agencies in carrying out the responsibil5 ities under this section. 

6 ‘‘(2) USE OF FUNDS.—A grant, cooperative 

7 agreement, interagency agreement, intraagency agree8 ment, or other transaction for a qualified project 

9 under this section shall be available to finance the 

10 leasing of equipment and facilities for use in public 

11 transportation, subject to any regulation that the Sec12 retary may prescribe limiting the grant or agreement 

13 to leasing arrangements that are more cost-effective 

14 than purchase or construction. 

15 ‘‘(b) DEFINITIONS.—As used in this section, the fol16 lowing definitions shall apply: 

17 ‘‘(1) ELIGIBLE AREA.—The term ‘eligible area’ 

18 means any federally owned or managed park, refuge, 

19 or recreational area that is open to the general public, 

20 including— 

21 ‘‘(A) a unit of the National Park System; 

22 ‘‘(B) a unit of the National Wildlife Refuge 

23 System; 

24 ‘‘(C) a recreational area managed by the 

25 Bureau of Land Management; and 
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1 ‘‘(D) a recreation area managed by the Bu2 reau of Reclamation. 

3 ‘‘(2) FEDERAL LAND MANAGEMENT AGENCY.— 

4 The term ‘Federal land management agency’ means a 

5 Federal agency that manages an eligible area. 

6 ‘‘(3) ALTERNATIVE TRANSPORTATION.—The term 

7 ‘alternative transportation’ means transportation by 

8 bus, rail, or any other publicly or privately owned 

9 conveyance that provides to the public general or spe10 cial service on a regular basis, including sightseeing 

11 service. 

12 ‘‘(4) QUALIFIED PARTICIPANT.—The term ‘quali13 fied participant’ means— 

14 ‘‘(A) a Federal land management agency; or 

15 ‘‘(B) a State, tribal, or local governmental 

16 authority with jurisdiction over land in the vi17 cinity of an eligible area acting with the consent 

18 of the Federal land management agency, alone or 

19 in partnership with a Federal land management 

20 agency or other Governmental or nongovern21 mental participant. 

22 ‘‘(5) QUALIFIED PROJECT.—The term ‘qualified 

23 project’ means a planning or capital project in or in 

24 the vicinity of an eligible area that— 
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1 ‘‘(A) is an activity described in section 

2 5302, 5303, 5304, 5308, or 5309(a)(1)(A); 

3 ‘‘(B) involves— 

4 ‘‘(i) the purchase of rolling stock that 

5 incorporates clean fuel technology or the re6 placement of buses of a type in use on the 

7 date of enactment of this section with clean 

8 fuel vehicles; or 

9 ‘‘(ii) the deployment of alternative 

10 transportation vehicles that introduce inno11 vative technologies or methods; 

12 ‘‘(C) relates to the capital costs of coordi13 nating the Federal land management agency 

14 public transportation systems with other public 

15 transportation systems; 

16 ‘‘(D) provides a nonmotorized transpor17 tation system (including the provision of facili18 ties for pedestrians, bicycles, and nonmotorized 

19 watercraft); 

20 ‘‘(E) provides waterborne access within or 

21 in the vicinity of an eligible area, as appropriate 

22 to and consistent with this section; or 

23 ‘‘(F) is any other alternative transportation 

24 project that— 

25 ‘‘(i) enhances the environment; 
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1 ‘‘(ii) prevents or mitigates an adverse 

2 impact on a natural resource; 

3 ‘‘(iii) improves Federal land manage4 ment agency resource management; 

5 ‘‘(iv) improves visitor mobility and ac6 cessibility and the visitor experience; 

7 ‘‘(v) reduces congestion and pollution 

8 (including noise pollution and visual pollu9 tion); or 

10 ‘‘(vi) conserves a natural, historical, or 

11 cultural resource (excluding rehabilitation 

12 or restoration of a non-transportation facil13 ity). 

14 ‘‘(c) FEDERAL AGENCY COOPERATIVE ARRANGE15 MENTS.—The Secretary shall develop cooperative arrange16 ments with the Secretary of the Interior that provide for— 

17 ‘‘(1) technical assistance in alternative transpor18 tation; 

19 ‘‘(2) interagency and multidisciplinary teams to 

20 develop Federal land management agency alternative 

21 transportation policy, procedures, and coordination; 

22 and 

23 ‘‘(3) the development of procedures and criteria 

24 relating to the planning, selection, and funding of 

25 qualified projects and the implementation and over-
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1 sight of the program of projects in accordance with 

2 this section. 

3 ‘‘(d) LIMITATION ON USE OF AVAILABLE AMOUNTS.— 

4 ‘‘(1) IN GENERAL.—The Secretary, in consulta5 tion with the Secretary of the Interior, may use not 

6 more than 10 percent of the amount made available 

7 for a fiscal year under section 5338(a)(2)(I) to carry 

8 out planning, research, and technical assistance 

9 under this section, including the development of tech10 nology appropriate for use in a qualified project. 

11 ‘‘(2) ADDITIONAL AMOUNTS.—Amounts made 

12 available under this subsection are in addition to 

13 amounts otherwise available to the Secretary to carry 

14 out planning, research, and technical assistance 

15 under this title or any other provision of law. 

16 ‘‘(3) MAXIMUM AMOUNT.—No qualified project 

17 shall receive more than 12 percent of the total amount 

18 made available to carry out this section under section 

19 5338(a)(2)(I) for any fiscal year. 

20 ‘‘(e) PLANNING PROCESS.—In undertaking a qualified 

21 project under this section, 

22 ‘‘(1) if the qualified participant is a Federal 

23 land management agency— 

24 ‘‘(A) the Secretary, in cooperation with the 

25 Secretary of the Interior, shall develop transpor-
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1 tation planning procedures that are consistent 

2 with— 

3 ‘‘(i) the metropolitan planning provi4 sions under section 5303 of this title; 

5 ‘‘(ii) the statewide planning provisions 

6 under section 5304 of this title; and 

7 ‘‘(iii) the public participation require8 ments under section 5307(e); and 

9 ‘‘(B) in the case of a qualified project that 

10 is at a unit of the National Park system, the 

11 planning process shall be consistent with the gen12 eral management plans of the unit of the Na13 tional Park system; and 

14 ‘‘(2) if the qualified participant is a State or 

15 local governmental authority, or more than one State 

16 or local governmental authority in more than one 

17 State, the qualified participant shall— 

18 ‘‘(A) comply with the metropolitan plan19 ning provisions under section 5303 of this title; 

20 ‘‘(B) comply with the statewide planning 

21 provisions under section 5304 of this title; 

22 ‘‘(C) comply with the public participation 

23 requirements under section 5307(e) of this title; 

24 and 
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1 ‘‘(D) consult with the appropriate Federal 

2 land management agency during the planning 

3 process. 

4 ‘‘(f) COST SHARING.— 

5 ‘‘(1) The Secretary, in cooperation with the Sec6 retary of the Interior, shall establish the agency share 

7 of net project cost to be provided under this section 

8 to a qualified participant. 

9 ‘‘(2) In establishing the agency share of net 

10 project cost to be provided under this section, the Sec11 retary shall consider— 

12 ‘‘(A) visitation levels and the revenue de13 rived from user fees in the eligible area in which 

14 the qualified project is carried out; 

15 ‘‘(B) the extent to which the qualified par16 ticipant coordinates with a public transportation 

17 authority or private entity engaged in public 

18 transportation; 

19 ‘‘(C) private investment in the qualified 

20 project, including the provision of contract serv21 ices, joint development activities, and the use of 

22 innovative financing mechanisms; 

23 ‘‘(D) the clear and direct benefit to the 

24 qualified participant; and 
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1 ‘‘(E) any other matters that the Secretary 

2 considers appropriate to carry out this section. 

3 ‘‘(3) Notwithstanding any other provision of law, 

4 Federal funds appropriated to any Federal land man5 agement agency may be counted toward the non-agen6 cy share of the net project cost of a qualified project. 

7 ‘‘(g) SELECTION OF QUALIFIED PROJECTS.— 

8 ‘‘(1) The Secretary of the Interior, after consulta9 tion with and in cooperation with the Secretary, shall 

10 determine the final selection and funding of an an11 nual program of qualified projects in accordance with 

12 this section. 

13 ‘‘(2) In determining whether to include a project 

14 in the annual program of qualified projects, the Sec15 retary of the Interior shall consider— 

16 ‘‘(A) the justification for the qualified 

17 project, including the extent to which the quali18 fied project would conserve resources, prevent or 

19 mitigate adverse impact, and enhance the envi20 ronment; 

21 ‘‘(B) the location of the qualified project, to 

22 ensure that the selected qualified projects— 

23 ‘‘(i) are geographically diverse nation24 wide; and 
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1 ‘‘(ii) include qualified projects in eligi2 ble areas located in both urban areas and 

3 rural areas; 

4 ‘‘(C) the size of the qualified project, to en5 sure that there is a balanced distribution; 

6 ‘‘(D) the historical and cultural significance 

7 of a qualified project; 

8 ‘‘(E) safety; 

9 ‘‘(F) the extent to which the qualified 

10 project would11 ‘‘(i) enhance livable communities; 

12 ‘‘(ii) reduce pollution (including noise 

13 pollution, air pollution, and visual pollu14 tion); 

15 ‘‘(iii) reduce congestion; and 

16 ‘‘(iv) improve the mobility of people in 

17 the most efficient manner; and 

18 ‘‘(G) any other matters that the Secretary 

19 considers appropriate to carry out this section, 

20 including— 

21 ‘‘(i) visitation levels; 

22 ‘‘(ii) the use of innovative financing or 

23 joint development strategies; and 

24 ‘‘(iii) coordination with gateway com25 munities. 
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1 ‘‘(h) QUALIFIED PROJECTS CARRIED OUT IN AD2 VANCE.— 

3 ‘‘(1) When a qualified participant carries out 

4 any part of a qualified project without assistance 

5 under this section in accordance with all applicable 

6 procedures and requirements, the Secretary, in con7 sultation with the Secretary of the Interior, may pay 

8 the share of the net capital project cost of a qualified 

9 project if— 

10 ‘‘(A) the qualified participant applies for 

11 the payment; 

12 ‘‘(B) the Secretary approves the payment; 

13 and 

14 ‘‘(C) before carrying out that part of the 

15 qualified project, the Secretary approves the 

16 plans and specifications in the same manner as 

17 plans and specifications are approved for other 

18 projects assisted under this section. 

19 ‘‘(2)(A) The cost of carrying out part of a quali20 fied project under paragraph (1) includes the amount 

21 of interest earned and payable on bonds issued by a 

22 State or local governmental authority, to the extent 

23 that proceeds of the bond are expended in carrying 

24 out that part. 
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1 ‘‘(B) The rate of interest under this paragraph 

2 may not exceed the most favorable rate reasonably 

3 available for the qualified project at the time of bor4 rowing. 

5 ‘‘(C) The qualified participant shall certify, in a 

6 manner satisfactory to the Secretary, that the quali7 fied participant has exercised reasonable diligence in 

8 seeking the most favorable interest rate. 

9 ‘‘(i) RELATIONSHIP TO OTHER LAWS.— 

10 ‘‘(1) SECTION 5307.—A qualified participant 

11 under this section shall be subject to the requirements 

12 of sections 5307 and 5333(a) to the extent the Sec13 retary determines to be appropriate. 

14 ‘‘(2) OTHER REQUIREMENTS.—A qualified par15 ticipant under this section is subject to any other 

16 terms, conditions, requirements, and provisions that 

17 the Secretary determines to be appropriate to carry 

18 out this section, including requirements for the dis19 tribution of proceeds on disposition of real property 

20 and equipment resulting from a qualified project as21 sisted under this section. 

22 ‘‘(3) PROJECT MANAGEMENT PLAN.—If the 

23 amount of assistance anticipated to be required for a 

24 qualified project under this section is not less than 

25 $25,000,000— 
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1 ‘‘(A) the qualified project shall, to the extent 

2 the Secretary considers appropriate, be carried 

3 out through a full funding grant agreement, in 

4 accordance with section 5309(g); and 

5 ‘‘(B) the qualified participant shall prepare 

6 a project management plan in accordance with 

7 section 5327(a). 

8 ‘‘(i) ASSET MANAGEMENT.—The Secretary, in con9 sultation with the Secretary of the Interior, may transfer 

10 the interest of the Department of Transportation in, and 

11 control over, all facilities and equipment acquired under 

12 this section to a qualified participant for use and disposi13 tion in accordance with any property management regula14 tions that the Secretary determines to be appropriate. 

15 ‘‘(j) COORDINATION OF RESEARCH AND DEPLOYMENT

16 OF NEW TECHNOLOGIES.— 

17 ‘‘(1) The Secretary, in cooperation with the Sec18 retary of the Interior, may undertake, or make 

19 grants, cooperative agreements, contracts (including 

20 agreements with departments, agencies, and instru21 mentalities of the Federal Government) or other 

22 transactions for research, development, and deploy23 ment of new technologies in eligible areas that will— 

24 ‘‘(A) conserve resources; 
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1 ‘‘(B) prevent or mitigate adverse environ2 mental impact; 

3 ‘‘(C) improve visitor mobility, accessibility, 

4 and enjoyment; and 

5 ‘‘(D) reduce pollution (including noise pol6 lution and visual pollution). 

7 ‘‘(2) The Secretary may request and receive ap8 propriate information from any source. 

9 ‘‘(3) Grants, cooperative agreements, contracts or 

10 other transactions under paragraph (1) shall be 

11 awarded from amounts allocated under subsection 

12 (c)(1). 

13 ‘‘(k) INNOVATIVE FINANCING.—A qualified project re14 ceiving financial assistance under this section shall be eligi15 ble for funding through a state infrastructure bank or other 

16 innovative financing mechanism available to finance an el17 igible project under this chapter. 

18 ‘‘(l) REPORTS.— 

19 ‘‘(1) IN GENERAL.—The Secretary, in consulta20 tion with the Secretary of the Interior, shall annually 

21 submit a report on the allocation of amounts made 

22 available to assist qualified projects under this section 

23 to— 

24 ‘‘(A) the Committee on Banking, Housing, 

25 and Urban Affairs of the Senate; and 
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1 ‘‘(B) the Committee on Transportation and 

2 Infrastructure of the House of Representatives. 

3 ‘‘(2) ANNUAL AND SUPPLEMENTAL REPORTS.— 

4 The report required under paragraph (1) shall be in5 cluded in the report submitted under section 

6 5309(m).’’. 

7 (b) CONFORMING AMENDMENTS.—The table of sections 

8 for chapter 53 is amended by inserting after the item relat9 ing to section 5315 the following: 

‘‘5316. Alternative transportation in parks and public lands.’’. 

10 SEC. 3042. OBLIGATION CEILING. 

11 Notwithstanding any other provision of law, the total 

12 of all obligations from amounts made available from the 

13 Mass Transit Account of the Highway Trust Fund by, and 

14 amounts appropriated under, subsections (a) through (c) of 

15 section 5338 of title 49, United States Code, shall not ex16 ceed— 

17 (1) $7,265,876,900 for fiscal year 2004; 

18 (2) $8,650,000,000 for fiscal year 2005; 

19 (3) $9,085,123,000 for fiscal year 2006; 

20 (4) $9,600,000,000 for fiscal year 2007; 

21 (5) $10,490,000,000 for fiscal year 2008; and 

22 (6) $11,430,000,000 for fiscal year 2009. 
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1 SEC. 3043. ADJUSTMENTS FOR THE SURFACE TRANSPOR2 TATION EXTENSION ACT OF 2003. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, the Secretary shall reduce the total apportion5 ments and allocations made for fiscal year 2004 to each 

6 grant recipient under section 5338 of title 49, United States 

7 Code, by the amount apportioned to that recipient pursuant 

8 to section 8 of the Surface Transportation Extension Act 

9 of 2003 (117 Stat. 1121). 

10 (b) FIXED GUIDEWAY MODERNIZATION ADJUST11 MENT.—In making the apportionments described in sub12 section (a), the Secretary shall adjust the amount appor13 tioned for fiscal year 2004 to each urbanized area for fixed 

14 guideway modernization to reflect the apportionment meth15 od set forth in 5337(a) of title 49, United States Code. 

16 SEC. 3044. DISADVANTAGED BUSINESS ENTERPRISE. 

17 Section 1101(b) of the Transportation Equity Act of 

18 the 21st Century shall apply to all funds authorized or oth19 erwise made available under this title. 

20 SEC. 3045. INTERMODAL PASSENGER FACILITIES. 

21 (a) IN GENERAL.—Chapter 55 of title 49, United 

22 States Code, is amended by adding at the end the following: 
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1 ‘‘SUBCHAPTER III—INTERMODAL PASSENGER 

2 FACILITIES 

3 § 5571. Policy and purposes 

4 ‘‘(a) DEVELOPMENT AND ENHANCEMENT OF INTER5 MODAL PASSENGER FACILITIES.—It is in the economic in6 terest of the United States to improve the efficiency of public 

7 surface transportation modes by ensuring their connection 

8 with and access to intermodal passenger terminals, thereby 

9 streamlining the transfer of passengers among modes, en10 hancing travel options, and increasing passenger transpor11 tation operating efficiencies. 

12 ‘‘(b) GENERAL PURPOSES.—The purposes of this sub13 chapter are to accelerate intermodal integration among 

14 North America’s passenger transportation modes through— 

15 ‘‘(1) ensuring intercity public transportation ac16 cess to intermodal passenger facilities; 

17 ‘‘(2) encouraging the development of an inte18 grated system of public transportation information; 

19 and 

20 ‘‘(3) providing intercity bus intermodal pas21 senger facility grants. 

22 § 5572. Definitions 

23 ‘‘In this subchapter— 

24 ‘‘(1) ‘capital project’ means a project for— 
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1 ‘‘(A) acquiring, constructing, improving, or 

2 renovating an intermodal facility that is related 

3 physically and functionally to intercity bus serv4 ice and establishes or enhances coordination be5 tween intercity bus service and transportation, 

6 including aviation, commuter rail, intercity rail, 

7 public transportation, seaports, and the National 

8 Highway System, such as physical infrastruc9 ture associated with private bus operations at 

10 existing and new intermodal facilities, including 

11 special lanes, curb cuts, ticket kiosks and 

12 counters, baggage and package express storage, 

13 employee parking, office space, security, and 

14 signage; and 

15 ‘‘(B) establishing or enhancing coordination 

16 between intercity bus service and transportation, 

17 including aviation, commuter rail, intercity rail, 

18 public transportation, and the National High19 way System through an integrated system of 

20 public transportation information. 

21 ‘‘(2) ‘commuter service’ means service designed 

22 primarily to provide daily work trips within the local 

23 commuting area. 

24 ‘‘(3) ‘intercity bus service’ means regularly 

25 scheduled bus service for the general public which op-
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1 erates with limited stops over fixed routes connecting 

2 two or more urban areas not in close proximity, 

3 which has the capacity for transporting baggage car4 ried by passengers, and which makes meaningful con5 nections with scheduled intercity bus service to more 

6 distant points, if such service is available and may 

7 include package express service, if incidental to pas8 senger transportation, but does not include air, com9 muter, water or rail service. 

10 ‘‘(4) ‘intermodal passenger facility’ means pas11 senger terminal that does, or can be modified to, ac12 commodate several modes of transportation and re13 lated facilities, including some or all of the following: 

14 intercity rail, intercity bus, commuter rail, intracity 

15 rail transit and bus transportation, airport limousine 

16 service and airline ticket offices, rent-a-car facilities, 

17 taxis, private parking, and other transportation serv18 ices. 

19 ‘‘(5) ‘local governmental authority’ includes— 

20 ‘‘(A) a political subdivision of a State; 

21 ‘‘(B) an authority of at least one State or 

22 political subdivision of a State; 

23 ‘‘(C) an Indian tribe; and 

24 ‘‘(D) a public corporation, board, or com25 mission established under the laws of the State. 
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1 ‘‘(6) ‘owner or operator of a public transpor2 tation facility’ means an owner or operator of inter3 city-rail, intercity-bus, commuter-rail, commuter-bus, 

4 rail-transit, bus-transit, or ferry services. 

5 ‘‘(7) ‘recipient’ means a State or local govern6 mental authority or a nonprofit organization that re7 ceives a grant to carry out this section directly from 

8 the Federal government. 

9 ‘‘(8) ‘Secretary’ means the Secretary of Trans10 portation. 

11 ‘‘(9) ‘State’ means a State of the United States, 

12 the District of Columbia, Puerto Rico, the Northern 

13 Mariana Islands, Guam, American Samoa, and the 

14 Virgin Islands. 

15 ‘‘(10) ‘urban area’ means an area that includes 

16 a municipality or other built-up place that the Sec17 retary, after considering local patterns and trends of 

18 urban growth, decides is appropriate for a local pub19 lic transportation system to serve individuals in the 

20 locality. 

21 ‘‘§ 5573. Assurance of access to intermodal passenger 

22 facilities 

23 ‘‘Intercity buses and other modes of transportation 

24 shall, to the maximum extent practicable, have access to 

25 publicly funded intermodal passenger facilities, including 
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1 those passenger facilities seeking funding under section 

2 5574. 

3 ‘‘§ 5574. Intercity bus intermodal passenger facility 

4 grants 

5 ‘‘(a) GENERAL AUTHORITY.—The Secretary of Trans6 portation may make grants under this section to recipients 

7 in financing a capital project only if the Secretary finds 

8 that the proposed project is justified and has adequate fi9 nancial commitment. 

10 ‘‘(b) COMPETITIVE GRANT SELECTION.—The Secretary 

11 shall conduct a national solicitation for applications for 

12 grants under this section. Grantees shall be selected on a 

13 competitive basis. 

14 ‘‘(c) SHARE OF NET PROJECT COSTS.—A grant shall 

15 not exceed 50 percent of the net project cost, as determined 

16 by the Secretary. 

17 ‘‘(d) REGULATIONS.—The Secretary may promulgate 

18 such regulations as are necessary to carry out this section. 

19 ‘‘§ 5575. Funding 

20 ‘‘(a) HIGHWAY ACCOUNT.— 

21 ‘‘(1) There is authorized to be appropriated from 

22 the Highway Trust Fund (other than the Mass Tran23 sit Account) to carry out this subchapter $10,000,000 

24 for each of fiscal years 2005 through 2009. 
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1 ‘‘(2) The funding made available under para2 graph (1) shall be available for obligation in the same 

3 manner as if such funds were apportioned under 

4 chapter 1 of title 23 and shall be subject to any obli5 gation limitation imposed on funds for Federal-aid 

6 highways and highway safety construction programs. 

7 ‘‘(b) PERIOD OF AVAILABILITY.—Amounts made avail8 able under subsection (a) shall remain available until ex9 pended.’’. 

10 (b) CONFORMING AMENDMENT.—The chapter analysis 

11 for chapter 55 of title 49, United States Code, is amended 

12 by adding at the end the following: 

‘‘SUBCHAPTER III—INTERMODAL PASSENGER FACILITIES

Sec. 

‘‘5571. Policy and Purposes. 

‘‘5572. Definitions. 

‘‘5573. Assurance of access to intermodal facilities. 

‘‘5574. Intercity bus intermodal facility grants. 

‘‘5575. Funding.’’. 

13 TITLE IV—SURFACE 

14 TRANSPORTATION SAFETY 

15 SEC. 4001. SHORT TITLE. 

16 This title may be cited as the ‘‘Surface Transportation 

17 Safety Reauthorization Act of 2004’’. 
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1 Subtitle A—Highway Safety 

2 PART I—HIGHWAY SAFETY GRANT PROGRAM 

3 SEC. 4101. SHORT TITLE; AMENDMENT OF TITLE 23, UNITED 

4 STATES CODE. 

5 (a) SHORT TITLE.—This subpart may be cited as the 

6 ‘‘Highway Safety Grant Program Reauthorization Act of 

7 2004’’. 

8 (b) AMENDMENT OF TITLE 23, UNITED STATES

9 CODE.—Except as otherwise expressly provided, whenever 

10 in this subpart an amendment or repeal is expressed in 

11 terms of an amendment to, or a repeal of, a section or other 

12 provision, the reference shall be considered to be made to 

13 a section or other provision of title 23, United States Code. 

14 SEC. 4102. AUTHORIZATION OF APPROPRIATIONS. 

15 (a) AMOUNTS FOR FISCAL YEARS 2004 THROUGH

16 2009.—There are authorized to be appropriated from the 

17 Highway Trust Fund (other than the Mass Transit Ac18 count) to the Secretary of Transportation for the National 

19 Highway Traffic Safety Administration the following: 

20 (1) To carry out the Highway Safety Programs 

21 under section 402 of title 23, United States Code, 

22 $170,000,000 in fiscal year 2004, $174,000,000 in fis23 cal year 2005, $179,000,000 in fiscal year 2006, 

24 $185,000,000 in fiscal year 2007, $204,000,000 in fis25 cal year 2008, and $207,000,000 in fiscal year 2009. 
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1 (2) To carry out the Highway Safety Research 

2 and Outreach Programs under section 403 of title 23, 

3 United States Code, $110,000,000 in fiscal year 2004, 

4 $112,000,000 in fiscal year 2005, $114,000,000 in fis5 cal year 2006, $116,000,000 in fiscal year 2007, 

6 $118,000,000 in fiscal year 2008, and $120,000,000 

7 in fiscal year 2009. 

8 (3) To carry out the Occupant Protection Pro9 grams under section 405 of title 23, United States 

10 Code, $120,000,000 in fiscal year 2004, $122,000,000 

11 in fiscal year 2005, $124,000,000 in fiscal year 2006, 

12 $126,000,000 in fiscal year 2007, $128,000,000 in fis13 cal year 2008, and $130,000,000 in fiscal year 2009. 

14 (4) To carry out the Emergency Medical Services 

15 Program under section 407A of title 23, United States 

16 Code, $5,000,000 in each of fiscal years 2004 through 

17 2009. 

18 (5) To carry out the Impaired Driving Program 

19 under section 410 of title 23, United States Code, 

20 $85,000,000 in fiscal year 2004, $89,000,000 in fiscal 

21 year 2005, $93,000,000 in fiscal year 2006, 

22 $110,000,000 in fiscal year 2007, $126,000,000 in fis23 cal year 2008, and $130,000,000 in fiscal year 2009. 

24 (6) To carry out the State Traffic Safety Infor25 mation System Improvements under section 412 of 
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1 title 23, United States Code, $45,000,000 in each of 

2 fiscal years 2004 through 2009. 

3 (7) To carry out chapter 303 of title 49, United 

4 States Code, $4,000,000 for each of fiscal years 2004 

5 through 2009. 

6 (b) PROHIBITION ON OTHER USES.—Except as other7 wise provided in this subtitle, the amounts allocated from 

8 the Highway Trust Fund for programs provided for in 

9 chapter 4 of title 23, United States Code, shall only be used 

10 for such programs and may not be used by States or local 

11 governments for construction purposes. 

12 (c) EFFECT OF REVENUE DEFICIENCY.—If revenue to 

13 the Highway Trust Fund for a given fiscal year is lower 

14 than the amounts authorized by this subpart, any subse15 quent reductions in the overall funding for highway and 

16 transit programs shall not affect the highway safety pro17 grams provided for in chapter 4 of title 23, United States 

18 Code. 

19 (d) PROPORTIONAL INCREASES.—For each fiscal year 

20 from 2004 through 2009, if revenue to the Highway Trust 

21 Fund increases above the amounts for each such fiscal year 

22 set forth in the fiscal year 2004 joint budget resolution, then 

23 the amounts made available in such year for the programs 

24 in sections 402, 405, and 410 shall increase by the same 

25 percentage. 
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1 SEC. 4103. HIGHWAY SAFETY PROGRAMS. 

2 (a) PROGRAMS TO BE INCLUDED.— 

3 (1) MOTOR VEHICLE AIRBAGS PUBLIC AWARE4 NESS.—Section 402(a)(2) is amended by striking‘‘ ve5 hicles and to increase public awareness of the benefit 

6 of motor vehicles equipped with airbags’’ and insert7 ing ‘‘vehicles,’’. 

8 (2) AGRESSIVE DRIVING.—Section 402(a) is fur9 ther amended— 

10 (A) by redesignating clause (6) as clause 

11 (8); 

12 (B) by inserting after ‘‘involving school 

13 buses,’’ at the end of clause (5) the following: 

14 ‘‘(6) to reduce aggressive driving and to educate 

15 drivers about defensive driving, (7) to reduce ac16 cidents resulting from fatigued and distracted 

17 drivers, including distractions arising from the 

18 use of electronic devices in vehicles,’’; and 

19 (C) by inserting ‘‘aggressive driving, dis20 tracted driving,’’ after ‘‘school bus accidents,’’. 

21 (b) APPORTIONMENT.— 

22 (1) TRIBAL GOVERNMENT PROGRAMS.—Section 

23 402(c) is amended by striking ‘‘three-fourths of 1 per24 cent’’ and inserting ‘‘2 percent’’. 
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1 (c) EXTRA FUNDING FOR OCCUPANT PROTECTION AND

2 IMPAIRED DRIVING PROGRAMS.—Section 402 is amended 

3 by inserting after subsection (g) the following: 

4 ‘‘(h) GRANTS.—Funds available to States under this 

5 section may be used for making grants of financial assist6 ance for programs and initiatives authorized by sections 

7 405 and 410 of this title.’’. 

8 (d) LAW ENFORCEMENT CHASE TRAINING.—Section 

9 402 is amended by adding at the end the following: 

10 ‘‘(l) LIMITATION RELATING TO LAW ENFORCEMENT

11 VEHICULAR PURSUIT TRAINING.—No State may receive 

12 any funds available for fiscal years after fiscal year 2004 

13 for programs under this chapter until the State submits to 

14 the Secretary a written statement that the State actively 

15 encourages all relevant law enforcement agencies in that 

16 State to follow the guidelines established for police chases 

17 issued by the International Association of Chiefs of Police 

18 that are in effect on the date of enactment of the Highway 

19 Safety Grant Program Reauthorization Act of 2004, or as 

20 revised and in effect after that date as determined by the 

21 Secretary. 

22 ‘‘(m) CONSOLIDATION OF GRANT APPLICATIONS.—The 

23 Secretary shall establish an approval process by which a 

24 State may apply for all grants included under this chapter 

25 through a single application with a single annual deadline. 
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1 The Bureau of Indian Affairs shall establish a similarly 

2 simplified process for applications from Indian tribes. 

3 ‘‘(n) ADMINISTRATIVE EXPENSES.—Funds authorized 

4 to be appropriated to carry out this section shall be subject 

5 to a deduction of not to exceed 5 percent for the necessary 

6 costs of administering the provisions of this section, section 

7 405, section 407A, section 410, and 413 of this chapter.’’. 

8 SEC. 4104. HIGHWAY SAFETY RESEARCH AND OUTREACH 

9 PROGRAMS. 

10 (a) REVISED AUTHORITY AND REQUIREMENTS.—Sec11 tion 403 is amended to read as follows: 

12 ‘‘§ 403. Highway safety research and development 

13 ‘‘(a) AUTHORITY OF THE SECRETARY.—The Secretary 

14 is authorized to use funds appropriated to carry out this 

15 section to— 

16 ‘‘(1) conduct research on all phases of highway 

17 safety and traffic conditions, including accident cau18 sation, highway or driver characteristics, communica19 tions, and emergency care; 

20 ‘‘(2) conduct ongoing research into driver behav21 ior and its effect on traffic safety; 

22 ‘‘(3) conduct research on, and launch initiatives 

23 to counter, fatigued driving by drivers of motor vehi24 cles and distracted driving in such vehicles, including 

25 the effect that the use of electronic devices and other 
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1 factors deemed relevant by the Secretary have on driv2 ing; 

3 ‘‘(4) conduct training or education programs in 

4 cooperation with other Federal departments and 

5 agencies, States, private sector persons, highway safe6 ty personnel, and law enforcement personnel; 

7 ‘‘(5) conduct research on, and evaluate the effec8 tiveness of, traffic safety countermeasures, including 

9 seat belts and impaired driving initiatives; and 

10 ‘‘(6) conduct demonstration projects. 

11 ‘‘(b) SPECIFIC RESEARCH PROGRAMS.— 

12 ‘‘(1) REQUIRED PROGRAMS.—The Secretary shall 

13 conduct research on the following: 

14 ‘‘(A) EFFECTS OF USE OF CONTROLLED

15 SUBSTANCES.—A study on the effects of the use 

16 of controlled substances on driver behavior to de17 termine— 

18 ‘‘(i) methodologies for measuring driver 

19 impairment resulting from use of the most 

20 common controlled substances (including the 

21 use of such substances in combination with 

22 alcohol); and 

23 ‘‘(ii) effective and efficient methods for 

24 training law enforcement personnel to detect 

25 or measure the level of impairment of a 
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1 driver who is under the influence of a con2 trolled substance by the use of technology or 

3 otherwise. 

4 ‘‘(B) ON-SCENE MOTOR VEHICLE COLLISION

5 CAUSATION.—A nationally representative study 

6 to collect on-scene motor vehicle collision data, 

7 and to determine crash causation, for which the 

8 Secretary shall enter into a contract with the 

9 National Academy of Sciences to conduct a re10 view of the research, design, methodology, and 

11 implementation of the study. 

12 ‘‘(C) TOLL FACILITIES WORKPLACE SAFE13 TY.—A study on the safety of highway toll collec14 tion facilities, including toll booths, conducted in 

15 cooperation with State and local highway safety 

16 organizations to determine the safety of highway 

17 toll collection facilities for the toll collectors who 

18 work in and around such facilities and to de19 velop best practices that would be of benefit to 

20 State and local highway safety organizations. 

21 The study shall consider— 

22 ‘‘(i) any problems resulting from de23 sign or construction of facilities that con24 tribute to the occurrence of vehicle collisions 

25 with the facilities; 
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1 ‘‘(ii) the safety of crosswalks used by 

2 toll collectors in transit to and from toll 

3 booths; 

4 ‘‘(iii) the extent of the enforcement of 

5 speed limits at and in the vicinity of toll 

6 facilities; 

7 ‘‘(iv) the use of warning devices, such 

8 as vibration and rumble strips, to alert 

9 drivers approaching toll facilities; 

10 ‘‘(v) the use of cameras to record traffic 

11 violations in the vicinity of toll facilities; 

12 ‘‘(vi) the use of traffic control arms in 

13 the vicinity of toll facilities; 

14 ‘‘(vii) law enforcement practices and 

15 jurisdictional issues that affect safety at 

16 and in the vicinity of toll facilities; and 

17 ‘‘(viii) data (which shall be collected in 

18 conducting the research) regarding the inci19 dence of accidents and injuries at and 

20 around toll booth facilities. 

21 ‘‘(2) TIME FOR COMPLETION OF STUDIES.—The 

22 studies conducted in subparagraphs (A), (B), and (C) 

23 of paragraph (1) may be conducted in concert with 

24 other Federal departments and agencies with relevant 

25 expertise. The Secretary shall submit an annual re-
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1 port to the Senate Committee on Commerce, Science, 

2 and Transportation and the House of Representatives 

3 Committee on Transportation and Infrastructure on 

4 the progress of each study conducted under this sub5 section. 

6 ‘‘(3) ONGOING STUDIES.—The studies under sub7 paragraphs (A) and (B) of paragraph (1) shall be 

8 conducted on an ongoing basis. 

9 ‘‘(4) REPORTS.— 

10 ‘‘(A) ONE-TIME STUDY.—Not later than 2 

11 years after the date of enactment of the Highway 

12 Safety Grant Program Reauthorization Act of 

13 2004, the Secretary shall submit a final report 

14 on the study referred to in paragraph (1)(C) to 

15 the Committee on Commerce, Science, and 

16 Transportation of the Senate and the Committee 

17 on Transportation and Infrastructure of the 

18 House of Representatives. 

19 ‘‘(B) ONGOING STUDIES.—The Secretary 

20 shall submit a report on the studies referred to 

21 in paragraph (3) to the Committees of Congress 

22 referred to in subparagraph (A) not later than 

23 December 31, 2005, and shall submit additional 

24 reports on such studies to such committees every 

25 2 years. Such additional reports shall contain 
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1 the findings, progress, remaining challenges, re2 search objectives, and other relevant data relat3 ing to the ongoing studies. 

4 ‘‘(5) RESEARCH ON DISTRACTED, INATTENTIVE, 

5 AND FATIGUED DRIVERS.—In conducting research 

6 under subsection (a)(3), the Secretary shall carry out 

7 not less than 5 demonstration projects to evaluate new 

8 and innovative means of combatting traffic system 

9 problems caused by distracted, inattentive, or fatigued 

10 drivers. The demonstration projects shall be in addi11 tion to any other research carried out under this sub12 section. 

13 ‘‘(c) NATIONWIDE TRAFFIC SAFETY CAMPAIGNS.— 

14 ‘‘(1) REQUIREMENT FOR CAMPAIGNS.—The Ad15 ministrator of the National Highway Traffic Safety 

16 Administration shall establish and administer a pro17 gram under which 3 high-visibility traffic safety law 

18 enforcement campaigns will be carried out for the 

19 purposes specified in paragraph (2) in each of years 

20 2004 through 2009. 

21 ‘‘(2) PURPOSE.—The purpose of each law en22 forcement campaign is to achieve either or both of the 

23 following objectives: 

24 ‘‘(A) Reduce alcohol-impaired or drug-im25 paired operation of motor vehicles. 
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1 ‘‘(B) Increase use of seat belts by occupants 

2 of motor vehicles. 

3 ‘‘(3) ADVERTISING.—The Administrator may 

4 use, or authorize the use of, funds available under this 

5 section to pay for the development, production, and 

6 use of broadcast and print media advertising in car7 rying out traffic safety law enforcement campaigns 

8 under this subsection. Consideration shall be given to 

9 advertising directed at non-English speaking popu10 lations, including those who listen, read, or watch 

11 nontraditional media. 

12 ‘‘(4) COORDINATION WITH STATES.—The Admin13 istrator shall coordinate with the States in carrying 

14 out the traffic safety law enforcement campaigns 

15 under this subsection, including advertising funded 

16 under paragraph (3), with a view to— 

17 ‘‘(A) relying on States to provide the law 

18 enforcement resources for the campaigns out of 

19 funding available under this section and sections 

20 402, 405, and 410 of this title; and 

21 ‘‘(B) providing out of National Highway 

22 Traffic Safety Administration resources most of 

23 the means necessary for national advertising and 

24 education efforts associated with the law enforce25 ment campaigns. 
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1 ‘‘(5) ANNUAL EVALUATION.—The Secretary shall 

2 conduct an annual evaluation of the effectiveness of 

3 such initiatives. 

4 ‘‘(6) FUNDING.—The Secretary shall use 

5 $24,000,000 in each of fiscal years 2004 through 2009 

6 for advertising and educational initiatives to be car7 ried out nationwide in support of the campaigns 

8 under this section. 

9 ‘‘(d) IMPROVING OLDER DRIVER SAFETY.— 

10 ‘‘(1) IN GENERAL.—Of the funds made available 

11 under this section, the Secretary shall allocate 

12 $2,000,000 in each of fiscal years 2004 through 2009 

13 to conduct a comprehensive research and demonstra14 tion program to improve traffic safety pertaining to 

15 older drivers. The program shall— 

16 ‘‘(A) provide information and guidelines to 

17 assist physicians and other related medical per18 sonnel, families, licensing agencies, enforcement 

19 officers, and various public and transit agencies 

20 in enhancing the safety and mobility of older 

21 drivers; 

22 ‘‘(B) improve the scientific basis of medical 

23 standards and screenings strategies used in the 

24 licensing of all drivers in a non-discriminatory 

25 manner; 
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1 ‘‘(C) conduct field tests to assess the safety 

2 benefits and mobility impacts of different driver 

3 licensing strategies and driver assessment and 

4 rehabilitation methods; 

5 ‘‘(D) assess the value and improve the safety 

6 potential of driver retraining courses of par7 ticular benefit to older drivers; and 

8 ‘‘(E) conduct other activities to accomplish 

9 the objectives of this action. 

10 ‘‘(2) FORMULATION OF PLAN.—After consultation 

11 with affected parties, the Secretary shall formulate an 

12 older driver traffic safety plan to guide the design 

13 and implementation of this program. The plan shall 

14 be submitted to the House of Representatives Com15 mittee on Transportation and Infrastructure and the 

16 Senate Committee on Commerce, Science, and Trans17 portation within 180 days after the date of enactment 

18 of the Highway Safety Grant Program Reauthoriza19 tion Act of 2004. 

20 ‘‘(e) LAW ENFORCEMENT TRAINING.— 

21 ‘‘(1) REQUIREMENT FOR PROGRAM.—The Ad22 ministrator of the National Highway Traffic Safety 

23 Administration shall carry out a program to train 

24 law enforcement personnel of each State and political 

25 subdivision thereof in police chase techniques that are 
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1 consistent with the police chase guidelines issued by 

2 the International Association of Chiefs of Police. 

3 ‘‘(2) AMOUNT FOR PROGRAM.—Of the amount 

4 available for a fiscal year to carry out this section, 

5 $200,000 shall be available for carrying out this sub6 section. 

7 ‘‘(f) INTERNATIONAL COOPERATION.— 

8 ‘‘(1) AUTHORITY.—The Administrator of the Na9 tional Highway Traffic Safety Administration may 

10 participate and cooperate in international activities 

11 to enhance highway safety. 

12 ‘‘(2) AMOUNT FOR PROGRAM.—Of the amount 

13 available for a fiscal year to carry out this section, 

14 $200,000 may be used for activities authorized under 

15 paragraph (1).’’. 

16 (b) STUDY ON REFUSAL OF INTOXICATION TESTING.— 

17 (1) REQUIREMENT FOR STUDY.—In addition to 

18 studies under section 403 of title 23, United States 

19 Code, the Secretary of Transportation shall carry out 

20 a study of the frequency with which persons arrested 

21 for the offense of operating a motor vehicle under the 

22 influence of alcohol and persons arrested for the of23 fense of operating a motor vehicle while intoxicated 

24 refuse to take a test to determine blood alcohol con25 centration levels and the effect such refusals have on 
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1 the ability of States to prosecute such persons for 

2 those offenses. 

3 (2) CONSULTATION.—In carrying out the study 

4 under this section, the Secretary shall consult with the 

5 Governors of the States, the States’ Attorneys General, 

6 and the United States Sentencing Commission. 

7 (3) REPORT.— 

8 (A) REQUIREMENT FOR REPORT.—Not later 

9 than 1 year after the date of the enactment of 

10 this Act, the Secretary shall submit a report on 

11 the results of the study to the Committee on 

12 Commerce, Science, and Transportation of the 

13 Senate and the Committee on Transportation 

14 and Infrastructure of the House of Representa15 tives. 

16 (B) CONTENT.—The report shall include 

17 any recommendation for legislation, including 

18 any recommended model State legislation, and 

19 any other recommendations that the Secretary 

20 considers appropriate for implementing a pro21 gram designed to decrease the occurrence refusals 

22 by arrested persons to submit to a test to deter23 mine blood alcohol concentration levels. 
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1 SEC. 4105. NATIONAL HIGHWAY SAFETY ADVISORY COM2 MITTEE TECHNICAL CORRECTION. 

3 Section 404(d) is amended by striking ‘‘Commerce’’ 

4 and inserting ‘‘Transportation’’. 

5 SEC. 4106. OCCUPANT PROTECTION GRANTS. 

6 Section 405 is amended— 

7 (1) by striking the second sentence of subsection 

8 (a)(1); 

9 (2) by striking ‘‘Transportation Equity Act for 

10 the 21st Century.’’ in subsection (a)(2) and inserting 

11 ‘‘Highway Safety Grant Program Reauthorization 

12 Act of 2004.’’; 

13 (3) by striking subsections (a)(3) and (4), (b), 

14 (c), and (d) and redesignating subsections (e) and (f) 

15 as subsections (d) and (e), respectively; and 

16 (4) by inserting after subsection (a) the fol17 lowing: 

18 ‘‘(b) OCCUPANT PROTECTION GRANTS.— 

19 ‘‘(1) IN GENERAL.—In addition to the grants au20 thorized by subsection (a), the Secretary shall make 

21 grants in accordance with this subsection. 

22 ‘‘(2) SAFETY BELT PERFORMANCE GRANTS.— 

23 ‘‘(A) PRIMARY SAFETY BELT USE LAW.— 

24 ‘‘(i) For fiscal years 2004 and 2005, 

25 the Secretary shall make a grant to each 

26 State that enacted, and is enforcing, a pri-
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1 mary safety belt use law for all passenger 

2 motor vehicles that became effective by De3 cember 31, 2002. 

4 ‘‘(ii) For each of fiscal years 2004 

5 through 2009, the Secretary shall, after 

6 making grants under clause (i) of this sub7 paragraph, make a one-time grant to each 

8 State that either enacts for the first time 

9 after December 31, 2002, and has in effect 

10 a primary safety belt use law for all pas11 senger motor vehicles, or, in the case of a 

12 State that does not have such a primary 

13 safety belt use law, has a State safety belt 

14 use rate in the preceding fiscal year of at 

15 least 90 percent, as measured under criteria 

16 determined by the Secretary. 

17 ‘‘(iii) Of the funds authorized for 

18 grants under this subsection, $100,000,000 

19 in each of fiscal years 2004 through 2009 

20 shall be available for grants under this 

21 paragraph. The amount of a grant available 

22 to a State in each of fiscal years 2004 and 

23 2005 under clause (i) of this subparagraph 

shall be equal to 1 24 ⁄2 of the amount of funds 

25 apportioned to the State under section 
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1 402(c) for fiscal year 2003. The amount of 

2 a grant available to a State in fiscal year 

3 2004 or in a subsequent fiscal year under 

4 clause (ii) of this subparagraph shall be 

5 equal to 5 times the amount apportioned to 

6 the State for fiscal year 2003 under section 

7 402(c). A State that receives a grant under 

8 clause (ii) of this subparagraph is ineligible 

9 to receive funding under subparagraph (B) 

10 for that fiscal year and the following fiscal 

11 year. The Federal share payable for grants 

12 under this subparagraph shall be 100 per13 cent. If the total amount of grants under 

14 clause (ii) of this subparagraph for a fiscal 

15 year exceeds the amount of funds available 

16 in the fiscal year, grants shall be made to 

17 each eligible State, in the order in which its 

18 primary safety belt use law became effective 

19 or its safety belt use rate reached 90 per20 cent, until the funds for the fiscal year are 

21 exhausted. A State that does not receive a 

22 grant for which it is eligible in a fiscal year 

23 shall receive the grant in the succeeding fis24 cal year so long as its law remains in effect 

25 or its safety belt use rate remains at or 
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1 above 90 percent. If the total amount of 

2 grants under this subparagraph for a fiscal 

3 year is less than the amount available in 

4 the fiscal year, the Secretary shall use any 

5 funds that exceed the total amount for 

6 grants under subparagraph (B) of this 

7 paragraph. 

8 ‘‘(B) SAFETY BELT USE RATE.— 

9 ‘‘(i) For each fiscal year, from 2004 

10 through 2009, the funds authorized for a 

11 grant under this subparagraph shall be 

12 awarded to States that increase their meas13 ured safety belt use rate, as determined by 

14 the Secretary, by decreasing the proportion 

15 of non-users of safety belts by 10 percent, as 

16 compared to the proportion of non-users, in 

17 the preceding fiscal year. 

18 ‘‘(ii) Each State that meets the re19 quirement of clause (i) of this subparagraph 

20 shall be apportioned an amount of funds 

21 that is equal to the amount available under 

22 this subparagraph for the relevant fiscal 

23 year multiplied by the ratio that the funds 

24 apportioned to the State under section 402 

25 for such fiscal year bear to the funds appor-
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1 tioned under section 402 for such fiscal year 

2 to all states that qualify for a grant for 

3 such fiscal year. 

4 ‘‘(iii) Of the funds authorized for 

5 grants under this subsection, $20,000,000 

6 for fiscal year 2004, $22,000,000 for fiscal 

7 year 2005, $24,000,000 for fiscal year 2006, 

8 $26,000,000 for fiscal year 2007, 

9 $28,000,000 for fiscal year 2008, and 

10 $30,000,000 for fiscal year 2009 shall be 

11 available for safety belt use rate grants 

12 under this subparagraph. 

13 ‘‘(iv) The Federal share payable for 

14 grants under this subparagraph shall be 100 

15 percent. 

16 ‘‘(c) USE OF GRANTS.—A State allocated an amount 

17 for a grant under subparagraph (A) or (B) of subsection 

18 (b)(2) may use the amount for activities eligible for assist19 ance under sections 402, 405, and 410 of this title.’’. 

20 SEC. 4107. SCHOOL BUS DRIVER TRAINING. 

21 Section 406(c) is amended by striking the first, second, 

22 and third sentences. 
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1 SEC. 4108. EMERGENCY MEDICAL SERVICES. 

2 (a) FEDERAL COORDINATION AND ENHANCED SUP3 PORT OF EMERGENCY MEDICAL SERVICES.—Chapter 4 is 

4 amended by inserting after section 407 the following: 

5 ‘‘§ 407A. Federal coordination and enhanced support 

6 of emergency medical services 

7 ‘‘(a) FEDERAL INTERAGENCY COMMITTEE ON EMER8 GENCY MEDICAL SERVICES.— 

9 ‘‘(1) ESTABLISHMENT.—The Secretary of Trans10 portation and the Secretary of Homeland Security, 

11 through the Under Secretary for Emergency Pre12 paredness and Response, shall establish a Federal 

13 Interagency Committee on Emergency Medical Serv14 ices. In establishing the Interagency Committee, the 

15 Secretary of Transportation and the Secretary of 

16 Homeland Security through the Under Secretary for 

17 Emergency Preparedness and Response shall consult 

18 with the Secretary of Health and Human Services. 

19 ‘‘(2) MEMBERSHIP.—The Interagency Committee 

20 shall consist of the following officials, or their des21 ignees: 

22 ‘‘(A) The Administrator, National Highway 

23 Traffic Safety Administration. 

24 ‘‘(B) The Director, Preparedness Division, 

25 Emergency Preparedness and Response Direc26 torate, Department of Homeland Security. 
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1 ‘‘(C) The Administrator, Health Resources 

2 and Services Administration, Department of 

3 Health and Human Services. 

4 ‘‘(D) The Director, Centers for Disease Con5 trol and Prevention, Department of Health and 

6 Human Services. 

7 ‘‘(E) The Administrator, United States Fire 

8 Administration, Emergency Preparedness and 

9 Response Directorate, Department of Homeland 

10 Security. 

11 ‘‘(F) The Director, Center for Medicare and 

12 Medicaid Services, Department of Health and 

13 Human Services. 

14 ‘‘(G) The Undersecretary of Defense for Per15 sonnel and Readiness. 

16 ‘‘(H) The Director, Indian Health Service, 

17 Department of Health and Human Services. 

18 ‘‘(I) The Chief, Wireless Telecom Bureau, 

19 Federal Communications Commission. 

20 ‘‘(J) A representative of any other Federal 

21 agency identified by the Secretary of Transpor22 tation or the Secretary of Homeland Security 

23 through the Under Secretary for Emergency Pre24 paredness and Response, in consultation with the 

25 Secretary of Health and Human Services, as 
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1 having a significant role in relation to the pur2 poses of the Interagency Committee. 

3 ‘‘(3) PURPOSES.—The purposes of the Inter4 agency Committee are as follows: 

5 ‘‘(A) To ensure coordination among the 

6 Federal agencies involved with State, local, trib7 al, or regional emergency medical services and 

8 9–1–1 systems. 

9 ‘‘(B) To identify State, local, tribal, or re10 gional emergency medical services and 9–1–1 

11 needs. 

12 ‘‘(C) To recommend new or expanded pro13 grams, including grant programs, for improving 

14 State, local, tribal, or regional emergency med15 ical services and implementing improved emer16 gency medical services communications tech17 nologies, including wireless 9–1–1. 

18 ‘‘(D) To identify ways to streamline the 

19 process through which Federal agencies support 

20 State, local, tribal or regional emergency medical 

21 services. 

22 ‘‘(E) To assist State, local, tribal or re23 gional emergency medical services in setting pri24 orities based on identified needs. 
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1 ‘‘(F) To advise, consult, and make rec2 ommendations on matters relating to the imple3 mentation of the coordinated State emergency 

4 medical services programs. 

5 ‘‘(4) ADMINISTRATION.—The Administrator of 

6 the National Highway Traffic Safety Administration, 

7 in cooperation with the Director, Preparedness Divi8 sion, Emergency Preparedness and Response Direc9 torate, Department of Homeland Security, shall pro10 vide administrative support to the Interagency Com11 mittee, including scheduling meetings, setting agen12 das, keeping minutes and records, and producing re13 ports. 

14 ‘‘(5) LEADERSHIP.—The members of the Inter15 agency Committee shall select a chairperson of the 

16 Committee annually. 

17 ‘‘(6) MEETINGS.—The Interagency Committee 

18 shall meet as frequently as is determined necessary by 

19 the chairperson of the Committee. 

20 ‘‘(7) ANNUAL REPORTS.—The Interagency Com21 mittee shall prepare an annual report to Congress on 

22 the Committee’s activities, actions, and recommenda23 tions. 

24 ‘‘(b) COORDINATED NATIONWIDE EMERGENCY MED25 ICAL SERVICES PROGRAM.— 
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1 ‘‘(1) PROGRAM REQUIREMENT.—The Secretary of 

2 Transportation, acting through the Administrator of 

3 the National Highway Traffic Safety Administration, 

4 shall coordinate with officials of other Federal depart5 ments and agencies, and may assist State and local 

6 governments and emergency medical services organi7 zations (whether or not a firefighter organization), 

8 private industry, and other interested parties, to en9 sure the development and implementation of a coordi10 nated nationwide emergency medical services pro11 gram that is designed to strengthen transportation 

12 safety and public health and to implement improved 

13 emergency medical services communication systems, 

14 including 9–1–1. 

15 ‘‘(2) COORDINATED STATE EMERGENCY MEDICAL

16 SERVICES PROGRAM.—Each State shall establish a 

17 program, to be approved by the Secretary, to coordi18 nate the emergency medical services and resources de19 ployed throughout the State, so as to ensure— 

20 ‘‘(A) improved emergency medical services 

21 communication systems, including 9–1–1; 

22 ‘‘(B) utilization of established best practices 

23 in system design and operations; 

24 ‘‘(C) implementation of quality assurance 

25 programs; and 
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1 ‘‘(D) incorporation of data collection and 

2 analysis programs that facilitate system develop3 ment and data linkages with other systems and 

4 programs useful to emergency medical services. 

5 ‘‘(3) ADMINISTRATION OF STATE PROGRAMS.— 

6 The Secretary may not approve a coordinated State 

7 emergency medical services program under this sub8 section unless the program— 

9 ‘‘(A) provides that the Governor of the State 

10 is responsible for its administration through a 

11 State office of emergency medical services that 

12 has adequate powers and is suitably equipped 

13 and organized to carry out such program and 

14 coordinates such program with the highway safe15 ty office of the State; and 

16 ‘‘(B) authorizes political subdivisions of the 

17 State to participate in and receive funds under 

18 such program, consistent with a goal of achiev19 ing statewide coordination of emergency medical 

20 services and 9–1–1 activities. 

21 ‘‘(4) FUNDING.— 

22 ‘‘(A) USE OF FUNDS.—Funds authorized to 

23 be appropriated to carry out this subsection shall 

24 be used to aid the States in conducting coordi-
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1 nated emergency medical services and 9–1–1 

2 programs as described in paragraph (2). 

3 ‘‘(B) APPORTIONMENT.— 

4 ‘‘(i) APPORTIONMENT FORMULA.—The 

5 funds shall be apportioned as follows: 75 

6 percent in the ratio that the population of 

7 each State bears to the total population of 

8 all the States, as shown by the latest avail9 able Federal census, and 25 percent in the 

10 ratio that the public road mileage in each 

11 State bears to the total public road mileage 

12 in all States. For the purpose of this sub13 paragraph, a ‘public road’ means any road 

14 under the jurisdiction of and maintained by 

15 a public authority and open to public trav16 el. Public road mileage as used in this sub17 section shall be determined as of the end of 

18 the calendar year prior to the year in which 

19 the funds are apportioned and shall be cer20 tified by the Governor of the State and sub21 ject to approval by the Secretary. 

22 ‘‘(ii) MINIMUM APPORTIONMENT.—The 

23 annual apportionment to each State shall 

not be less than 1 24 ⁄2 of 1 percent of the total 

25 apportionment, except that the apportion-
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1 ment to the Secretary of the Interior on be2 half of Indian tribes shall not be less than 

3 3 ⁄4 of 1 percent of the total apportionment, 

4 and the apportionments to the Virgin Is5 lands, Guam, American Samoa, and the 

6 Commonwealth of the Northern Mariana Islands shall not be less than 1 7 ⁄4 of 1 percent 

8 of the total apportionment. 

9 ‘‘(5) APPLICABILITY OF CHAPTER 1.—Section 

10 402(d) of this title shall apply in the administration 

11 of this subsection. 

12 ‘‘(6) FEDERAL SHARE.—The Federal share of the 

13 cost of a project or program funded under this sub14 section shall be 80 percent. 

15 ‘‘(7) APPLICATION IN INDIAN COUNTRY.— 

16 ‘‘(A) USE OF TERMS.—For the purpose of 

17 application of this subsection in Indian country, 

18 the terms ‘State’ and ‘Governor of the State’ in19 clude the Secretary of the Interior and the term 

20 ‘political subdivisions of the State’ includes an 

21 Indian tribe. 

22 ‘‘(B) INDIAN COUNTRY DEFINED.—In this 

23 subsection, the term ‘Indian country’ means— 

24 ‘‘(i) all land within the limits of any 

25 Indian reservation under the jurisdiction of 
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1 the United States, notwithstanding the 

2 issuance of any patent and including 

3 rights-of-way running through the reserva4 tion; 

5 ‘‘(ii) all dependent Indian commu6 nities within the borders of the United 

7 States, whether within the original or subse8 quently acquired territory thereof and 

9 whether within or without the limits of a 

10 State; and 

11 ‘‘(iii) all Indian allotments, the Indian 

12 titles to which have not been extinguished, 

13 including rights-of-way running through 

14 such allotments. 

15 ‘‘(c) STATE DEFINED.—In this section, the term ‘State’ 

16 means each of the 50 States, the District of Columbia, Puer17 to Rico, the Virgin Islands, Guam, American Samoa, the 

18 Commonwealth of the Northern Mariana Islands, and the 

19 Secretary of the Interior on behalf of Indian tribes. 

20 ‘‘(d) CONSTRUCTION WITH RESPECT TO DISTRICT OF

21 COLUMBIA.—In the administration of this section with re22 spect to the District of Columbia, a reference in this section 

23 to the Governor of a State shall refer to the Mayor of the 

24 District of Columbia.’’. 
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1 (b) CLERICAL AMENDMENT.—The chapter analysis for 

2 chapter 4 is amended by inserting after the item relating 

3 to section 407 the following: 

‘‘407A. Federal coordination and enhanced support of emergency medical services.’’. 

4 SEC. 4109. REPEAL OF AUTHORITY FOR ALCOHOL TRAFFIC 

5 SAFETY PROGRAMS. 

6 (a) REPEAL.—Section 408 is repealed. 

7 (b) CLERICAL AMENDMENT.—The chapter analysis for 

8 chapter 4 is amended by striking the item relating to sec9 tion 408. 

10 SEC. 4110. IMPAIRED DRIVING PROGRAM. 

11 (a) MAINTENANCE OF EFFORT.—Section 410(a)(2) is 

12 amended by striking ‘‘the Transportation Equity Act for 

13 the 21st Century’’ and inserting ‘‘the Highway Safety 

14 Grant Program Reauthorization Act of 2004’’. 

15 (b) REVISED GRANT AUTHORITY.—Section 410 is 

16 amended— 

17 (1) by striking paragraph (3) of subsection (a) 

18 and redesignating paragraph (4) as paragraph (3); 

19 and 

20 (2) by striking subsections (b) through (f) and 

21 inserting the following: 

22 ‘‘(b) PROGRAM-RELATED ELIGIBILITY REQUIRE23 MENTS.—To be eligible for a grant under this section, a 

24 State shall— 
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1 ‘‘(1) carry out each of the programs and activi2 ties required under subsection (c); 

3 ‘‘(2) comply with the additional requirements set 

4 forth in subsection (d) with respect to such programs 

5 and activities; and 

6 ‘‘(3) comply with any additional requirements of 

7 the Secretary. 

8 ‘‘(c) REQUIRED STATE PROGRAMS AND ACTIVITIES.— 

9 For the purpose of subsection (b)(1), a State must meet the 

10 requirements of 4 of the following 6 criteria in order to re11 ceive a grant under this section: 

12 ‘‘(1) CHECK-POINT, SATURATION PATROL PRO13 GRAM.— 

14 ‘‘(A) A State program to conduct of a series 

15 of high-visibility, Statewide law enforcement 

16 campaigns in which law enforcement personnel 

17 monitor for impaired driving, either through use 

18 of check-points or saturation patrols, on a non19 discriminatory, lawful basis for the purpose of 

20 determining whether the operators of the motor 

21 vehicles are driving while under the influence of 

22 alcohol or controlled substances that meets the re23 quirements of subparagraphs (B) and (C). 

24 ‘‘(B) A program meets the requirements of 

25 this subparagraph only if a State organizes the 
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1 campaigns in cooperation with related national 

2 campaigns organized by the National Highway 

3 Traffic Safety Administration, but this subpara4 graph does not preclude a State from initiating 

5 high-visibility, Statewide law enforcement cam6 paigns independently of the cooperative efforts. 

7 ‘‘(C) A program meets the requirements of 

8 this subparagraph only if, for each fiscal year, a 

9 State demonstrates to the Secretary that the 

10 State and the political subdivisions of the State 

11 that receive funds under this section have in12 creased, in the aggregate, the total number of im13 paired driving law enforcement activities, as de14 scribed in subparagraph (A) (or any other simi15 lar activity approved by the Secretary), initiated 

16 in such State during the preceding fiscal year by 

17 a factor that the Secretary determines meaning18 ful for the State over the number of such activi19 ties initiated in such State during the preceding 

20 fiscal year, which shall not be less than 5 per21 cent. 

22 ‘‘(2) PROSECUTION AND ADJUDICATION PRO23 GRAM.—For grants made during fiscal years after fis24 cal year 2004, a State prosecution and adjudication 

25 program under which— 
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1 ‘‘(A) judges and prosecutors are actively en2 couraged to prosecute and adjudicate cases of de3 fendants who repeatedly commit impaired driv4 ing offenses by reducing the use of State diver5 sion programs, or other means that have the ef6 fect of avoiding or expunging a permanent 

7 record of impaired driving in such cases; 

8 ‘‘(B) the courts in a majority of the judicial 

9 jurisdictions of the State are monitored on the 

10 courts’ adjudication of cases of impaired driving 

11 offenses; or 

12 ‘‘(C) annual Statewide outreach is provided 

13 for judges and prosecutors on innovative ap14 proaches to the prosecution and adjudication of 

15 cases of impaired driving offenses that have the 

16 potential for significantly improving the pros17 ecution and adjudication of such cases. 

18 ‘‘(3) IMPAIRED OPERATOR INFORMATION SYS19 TEM.— 

20 ‘‘(A) A State impaired operator informa21 tion system that— 

22 ‘‘(i) tracks drivers who are arrested or 

23 convicted for violation of laws prohibiting 

24 impaired operation of motor vehicles; 
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1 ‘‘(ii) includes information about each 

2 case of an impaired driver beginning at the 

3 time of arrest through case disposition, in4 cluding information about any trial, plea, 

5 plea agreement, conviction or other disposi6 tion, sentencing or other imposition of sanc7 tions, and substance abuse treatment; 

8 ‘‘(iii) provides— 

9 ‘‘(I) accessibility to the informa10 tion for law enforcement personnel 

11 Statewide and for United States law 

12 enforcement personnel; and 

13 ‘‘(II) linkage for the sharing of the 

14 information and of the information in 

15 State traffic record systems among ju16 risdictions and appropriate agencies, 

17 court systems and offices of the States; 

18 ‘‘(iv) shares information with the Na19 tional Highway Traffic Safety Administra20 tion for compilation and use for the track21 ing of impaired operators of motor vehicles 

22 who move from State to State; and 

23 ‘‘(v) meets the requirements of sub24 paragraphs (B), (C), and (D) of this para25 graph, as applicable. 
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1 ‘‘(B) A program meets the requirements of 

2 this subparagraph only if, during fiscal years 

3 2004 and 2005, a State— 

4 ‘‘(i) assesses the system used by the 

5 State for tracking drivers who are arrested 

6 or convicted for violation of laws prohib7 iting impaired operation of motor vehicles; 

8 ‘‘(ii) identifies ways to improve the 

9 system, as well as to enhance the capability 

10 of the system to provide information in co11 ordination with impaired operator informa12 tion systems of other States; and 

13 ‘‘(iii) develops a strategic plan that 

14 sets forth the actions to be taken and the re15 sources necessary to achieve the identified 

16 improvements and to enhance the capability 

17 for coordination with the systems of other 

18 States. 

19 ‘‘(C) A program meets the requirements of 

20 this subparagraph only if, in each of fiscal years 

21 2006, 2007, and 2008, a State demonstrates to 

22 the Secretary that the State has made substan23 tial and meaningful progress in improving the 

24 State’s impaired operator information system, 
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1 and makes public a report on the progress of the 

2 information system. 

3 ‘‘(D) A program meets the requirements of 

4 this subparagraph only if, in fiscal year 2009, a 

5 State demonstrates to the Secretary that the 

6 State’s impaired operator information system 

7 meets the basic standards for such systems as de8 termined by the Secretary. 

9 ‘‘(4) IMPAIRED DRIVING PERFORMANCE.—The 

10 percentage of fatally-injured drivers with 0.08 percent 

11 or greater blood alcohol concentration in the State has 

12 decreased in each of the 2 most recent calendar years. 

13 ‘‘(5) IMPAIRED DRIVING TASK FORCE.—(A) Es14 tablishment of an impaired driving task force that in15 volves all relevant State, tribal, and local agencies re16 sponsible for reducing alcohol impairment and im17 paired driving and meets the requirements of sub18 paragraphs (B), (C), and (D). The purpose of the task 

19 force is to oversee efforts to reduce impaired driving 

20 by strengthening applicable laws, regulations, pro21 grams, and policies, and to coordinate impaired driv22 ing resources and programs among different jurisdic23 tions. The impaired driving task force shall include 

24 State, Tribal, and local law enforcement, motor car25 rier safety agencies, and State alcohol and drug abuse 
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1 prevention agencies, State and local court systems, 

2 State drivers licensing agencies, the State highway 

3 safety office, and State parole and probation agencies. 

4 ‘‘(B) In fiscal year 2004 and fiscal year 2005, 

5 the State shall establish a statewide impaired driving 

6 task force to assess the State’s impaired driving sys7 tem, identify the opportunities for improvements in 

8 the system, and develop a strategic plan that outlines 

9 the steps and resources necessary to improve the sys10 tem and enhance coordination among State and local 

11 agencies responsible for reducing impaired driving. 

12 ‘‘(C) In each subsequent fiscal year, the State 

13 demonstrates progress in the implementation of top 

14 priorities of the strategic plan. 

15 ‘‘(D) The State provides the Secretary a copy of 

16 the strategic plan developed under subparagraph and 

17 in subsequent years, a report detailing the progress of 

18 the strategic plan. The Secretary shall make available 

19 for public viewing each strategic plan and progress 

20 report. 

21 ‘‘(6) IMPAIRED DRIVING COURTS.— 

22 ‘‘(A) IN GENERAL.—A program to consoli23 date and coordinate impaired driving cases into 

24 courts that specialize in impaired driving cases, 

25 with the emphasis on tracking and processing of-
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1 fenders of impaired driving laws, (hereinafter re2 ferred to as DWI courts) that meets the require3 ments of this paragraph. 

4 ‘‘(B) CHARACTERISTICS.—A DWI Court is 

5 a distinct function performed by a court system 

6 for the purpose of changing the behavior of alco7 hol or drug dependent offenders arrested for driv8 ing while impaired. A DWI Court can be a dedi9 cated court with dedicated personnel, including 

10 judges, prosecutors and probation officers. A 

11 DWI court may be an existing court system that 

12 serves the following essential DWI Court func13 tions: 

14 ‘‘(i) A DWI Court performs an assess15 ment of high-risk offenders utilizing a team 

16 headed by the judge and including all 

17 criminal justice stakeholders (prosecutors, 

18 defense attorneys, probations officers, law 

19 enforcement personnel and others) along 

20 with alcohol/drug treatment professionals. 

21 ‘‘(ii) The DWI Court team recommends 

22 a specific plea agreement or contract for 

23 each offender that can include incarcer24 ation, treatment, and close community su25 pervision. The agreement maximizes the 
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1 probability of rehabilitation and minimizes 

2 the likelihood of recidivism. 

3 ‘‘(iii) Compliance with the agreement 

4 is verified with thorough monitoring and 

5 frequent alcohol testing. Periodic status 

6 hearings assess offender progress and allow 

7 an opportunity for modifying the sentence 

8 if necessary. 

9 ‘‘(C) ASSESSMENT.—In the first year of op10 eration, the States shall assess the number of 

11 court systems in its jurisdiction that are consist12 ently performing the DWI Court functions. 

13 ‘‘(D) PLAN.—In the second year of oper14 ation, the State shall develop a strategic plan for 

15 increasing the number of courts performing the 

16 DWI function. 

17 ‘‘(E) PROGRESS.—In subsequent years of 

18 operation, the State shall demonstrate progress 

19 in increasing the number of DWI Courts and in 

20 increasing the number of high-risk offenders par21 ticipating in and successfully completing DWI 

22 Court agreements. 

23 ‘‘(d) USES OF GRANTS.—Grants made under this sec24 tion may be used for programs and activities described in 

25 subsection (c) and to defray the following costs: 
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1 ‘‘(1) Labor costs, management costs, and equip2 ment procurement costs for the high-visibility, State3 wide law enforcement campaigns under subsection 

4 (c)(1). 

5 ‘‘(2) The costs of the training of law enforcement 

6 personnel and the procurement of technology and 

7 equipment, such as and including video equipment 

8 and passive alcohol sensors, to counter directly im9 paired operation of motor vehicles. 

10 ‘‘(3) The costs of public awareness, advertising, 

11 and educational campaigns that publicize use of so12 briety check points or increased law enforcement ef13 forts to counter impaired operation of motor vehicles. 

14 ‘‘(4) The costs of public awareness, advertising, 

15 and educational campaigns that target impaired op16 eration of motor vehicles by persons under 34 years 

17 of age. 

18 ‘‘(5) The costs of the development and implemen19 tation of a State impaired operator information sys20 tem described in subsection (c)(3). 

21 ‘‘(6) The costs of operating programs that im22 pound the vehicle of an individual arrested as an im23 paired operator of a motor vehicle for not less than 

24 12 hours after the operator is arrested. 
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1 ‘‘(e) ADDITIONAL AUTHORITIES FOR CERTAIN AU2 THORIZED USES.— 

3 ‘‘(1) COMBINATION OF GRANT PROCEEDS.— 

4 Grant funds used for a campaign under subsection 

5 (d)(3) may be combined, or expended in coordination, 

6 with proceeds of grants under section 402 of this title. 

7 ‘‘(2) COORDINATION OF USES.—Grant funds 

8 used for a campaign under paragraph (3) or (4) of 

9 subsection (d) may be expended— 

10 ‘‘(A) in coordination with employers, 

11 schools, entities in the hospitality industry, and 

12 nonprofit traffic safety groups; and 

13 ‘‘(B) in coordination with sporting events 

14 and concerts and other entertainment events. 

15 ‘‘(f) FUNDING.— 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), grant funding under this section shall be 

18 allocated among eligible States on the basis of the ap19 portionment formula that applies for apportionments 

20 under section 402(c) of this title. 

21 ‘‘(2) HIGH FATALITY-RATE STATES.—The 

22 amount of the grant funds allocated under this sub23 section to each of the 10 States with the highest im24 paired driving-related fatality rate for the most recent 

25 fiscal year for which the data is available preceding 
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1 the fiscal year of the allocation shall be twice the 

2 amount that, except for this subparagraph, would oth3 erwise be allocated to the State under paragraph (1). 

4 ‘‘(g) USE OF FUNDS BY HIGH FATALITY-RATE

5 STATES.— 

‘‘(1) REQUIRED USES.—At least 1 6 ⁄2 of the 

7 amounts allocated to States under subsection (f)(2) 

8 shall be used for the program described in subsection 

9 (c)(1). 

10 ‘‘(2) REQUIREMENT FOR PLAN.—A State receiv11 ing an allocation of grant funds under subsection 

12 (f)(2) shall expend those funds only after consulting 

13 with the Administrator of the National Highway 

14 Traffic Safety Administration regarding such expend15 itures. 

16 ‘‘(h) DEFINITIONS.—In this section: 

17 ‘‘(1) IMPAIRED OPERATOR.—The term ‘impaired 

18 operator’ means a person who, while operating a 

19 motor vehicle— 

20 ‘‘(A) has a blood alcohol content of 0.08 per21 cent or higher; or 

22 ‘‘(B) is under the influence of a controlled 

23 substance. 

24 ‘‘(2) IMPAIRED DRIVING-RELATED FATALITY

25 RATE.—The term ‘impaired driving-related fatality 
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1 rate’ means the rate of the fatal accidents that involve 

2 impaired drivers while operating motor vehicles, as 

3 calculated in accordance with regulations which the 

4 Administrator of the National Highway Traffic Safe5 ty Administration shall prescribe.’’. 

6 (c) NHTSA TO ISSUE REGULATIONS.—Not later than 

7 12 months after the date of enactment of the Highway Safe8 ty Grant Program Reauthorization Act of 2004, the Na9 tional Highway Traffic Safety Administration shall issue 

10 guidelines to the States specifying the types and formats 

11 of data that States should collect relating to drivers who 

12 are arrested or convicted for violation of laws prohibiting 

13 the impaired operation of motor vehicles. 

14 SEC. 4111. STATE TRAFFIC SAFETY INFORMATION SYSTEM 

15 IMPROVEMENTS. 

16 (a) GRANT PROGRAM AUTHORITY.—Chapter 4 is 

17 amended by adding at the end the following: 

18 ‘‘§ 412. State traffic safety information system im19 provements 

20 ‘‘(a) GRANT AUTHORITY.—Subject to the requirements 

21 of this section, the Secretary shall make grants of financial 

22 assistance to eligible States to support the development and 

23 implementation of effective programs by such States to— 

24 ‘‘(1) improve the timeliness, accuracy, complete25 ness, uniformity, integration, and accessibility of the 
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1 safety data of the State that is needed to identify pri2 orities for national, State, and local highway and 

3 traffic safety programs; 

4 ‘‘(2) evaluate the effectiveness of efforts to make 

5 such improvements; 

6 ‘‘(3) link the State data systems, including traf7 fic records, with other data systems within the State, 

8 such as systems that contain medical, roadway, and 

9 economic data; and 

10 ‘‘(4) improve the compatibility and interoper11 ability of the data systems of the State with national 

12 data systems and data systems of other States and en13 hance the ability of the Secretary to observe and ana14 lyze national trends in crash occurrences, rates, out15 comes, and circumstances. 

16 ‘‘(b) FIRST-YEAR GRANTS.— 

17 ‘‘(1) ELIGIBILITY.—To be eligible for a first-year 

18 grant under this section in a fiscal year, a State shall 

19 demonstrate to the satisfaction of the Secretary that 

20 the State has— 

21 ‘‘(A) established a highway safety data and 

22 traffic records coordinating committee with a 

23 multidisciplinary membership that includes, 

24 among others, managers, collectors, and users of 
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1 traffic records and public health and injury con2 trol data systems; and 

3 ‘‘(B) developed a multiyear highway safety 

4 data and traffic records system strategic plan 

5 that addresses existing deficiencies in the State’s 

6 highway safety data and traffic records system, 

7 is approved by the highway safety data and traf8 fic records coordinating committee, and— 

9 ‘‘(i) specifies how existing deficiencies 

10 in the State’s highway safety data and traf11 fic records system were identified; 

12 ‘‘(ii) prioritizes, on the basis of the 

13 identified highway safety data and traffic 

14 records system deficiencies, the highway 

15 safety data and traffic records system needs 

16 and goals of the State, including the activi17 ties under subsection (a); 

18 ‘‘(iii) identifies performance-based 

19 measures by which progress toward those 

20 goals will be determined; and 

21 ‘‘(iv) specifies how the grant funds and 

22 any other funds of the State are to be used 

23 to address needs and goals identified in the 

24 multiyear plan. 
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1 ‘‘(2) GRANT AMOUNT.—Subject to subsection 

2 (d)(3), the amount of a first-year grant to a State for 

3 a fiscal year shall the higher of— 

4 ‘‘(A) the amount determined by multi5 plying— 

6 ‘‘(i) the amount appropriated to carry 

7 out this section for such fiscal year, by 

8 ‘‘(ii) the ratio that the funds appor9 tioned to the State under section 402 of this 

10 title for fiscal year 2003 bears to the funds 

11 apportioned to all States under such section 

12 for fiscal year 2003; or 

13 ‘‘(B) $300,000. 

14 ‘‘(c) SUCCESSIVE YEAR GRANTS.— 

15 ‘‘(1) ELIGIBILITY.—A State shall be eligible for 

16 a grant under this subsection in a fiscal year suc17 ceeding the first fiscal year in which the State re18 ceives a grant under subsection (b) if the State, to the 

19 satisfaction of the Secretary— 

20 ‘‘(A) submits an updated multiyear plan 

21 that meets the requirements of subsection 

22 (b)(1)(B); 

23 ‘‘(B) certifies that its highway safety data 

24 and traffic records coordinating committee con-
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1 tinues to operate and supports the multiyear 

2 plan; 

3 ‘‘(C) specifies how the grant funds and any 

4 other funds of the State are to be used to address 

5 needs and goals identified in the multiyear plan; 

6 ‘‘(D) demonstrates measurable progress to7 ward achieving the goals and objectives identi8 fied in the multiyear plan; and 

9 ‘‘(E) includes a current report on the 

10 progress in implementing the multiyear plan. 

11 ‘‘(2) GRANT AMOUNT.—Subject to subsection 

12 (d)(3), the amount of a year grant made to a State 

13 for a fiscal year under this subsection shall equal the 

14 higher of— 

15 ‘‘(A) the amount determined by multi16 plying— 

17 ‘‘(i) the amount appropriated to carry 

18 out this section for such fiscal year, by 

19 ‘‘(ii) the ratio that the funds appor20 tioned to the State under section 402 of this 

21 title for fiscal year 2003 bears to the funds 

22 apportioned to all States under such section 

23 for fiscal year 2003; or 

24 ‘‘(B) $500,000. 
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1 ‘‘(d) ADDITIONAL REQUIREMENTS AND LIMITA2 TIONS.— 

3 ‘‘(1) MODEL DATA ELEMENTS.—The Secretary, 

4 in consultation with States and other appropriate 

5 parties, shall determine the model data elements that 

6 are useful for the observation and analysis of State 

7 and national trends in occurrences, rates, outcomes, 

8 and circumstances of motor vehicle traffic accidents. 

9 In order to be eligible for a grant under this section, 

10 a State shall submit to the Secretary a certification 

11 that the State has adopted and uses such model data 

12 elements, or a certification that the State will use 

13 grant funds provided under this section toward 

14 adopting and using the maximum number of such 

15 model data elements as soon as practicable. 

16 ‘‘(2) DATA ON USE OF ELECTRONIC DEVICES.— 

17 The model data elements required under paragraph 

18 (1) shall include data elements, as determined appro19 priate by the Secretary in consultation with the 

20 States and with appropriate elements of the law en21 forcement community, on the impact on traffic safety 

22 of the use of electronic devices while driving. 

23 ‘‘(3) MAINTENANCE OF EFFORT.—No grant may 

24 be made to a State under this section in any fiscal 

25 year unless the State enters into such agreements with 
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1 the Secretary as the Secretary may require to ensure 

2 that the State will maintain its aggregate expendi3 tures from all other sources for highway safety data 

4 programs at or above the average level of such expend5 itures maintained by such State in the 2 fiscal years 

6 preceding the date of enactment of the Highway Safe7 ty Grant Program Reauthorization Act of 2003. 

8 ‘‘(4) FEDERAL SHARE.—The Federal share of the 

9 cost of adopting and implementing in a fiscal year a 

10 State program described in subsection (a) may not 

11 exceed 80 percent. 

12 ‘‘(5) LIMITATION ON USE OF GRANT PRO13 CEEDS.—A State may use the proceeds of a grant re14 ceived under this section only to implement the pro15 gram described in subsection (a) for which the grant 

16 is made. 

17 ‘‘(e) APPLICABILITY OF CHAPTER 1.—Section 402(d) 

18 of this title shall apply in the administration of this sec19 tion.’’. 

20 (b) CLERICAL AMENDMENT.—The chapter analysis for 

21 chapter 4 is amended by adding at the end the following: 

‘‘412. State traffic safety information system improvements.’’. 

22 SEC. 4112. NHTSA ACCOUNTABILITY. 

23 (a) IN GENERAL.—Chapter 4, as amended by section 

24 4111, is amended by adding at the end the following: 
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1 ‘‘§ 413. Agency accountability 

2 ‘‘(a) TRIENNIAL STATE MANAGEMENT REVIEWS.—At 

3 least once every 3 years the National Highway Traffic Safe4 ty Administration shall conduct a review of each State 

5 highway safety program. The review shall include a man6 agement evaluation of all grant programs partially or fully 

7 funded under this title. The Administrator shall provide re8 view-based recommendations on how each State may im9 prove the management and oversight of its grant activities 

10 and may provide a management and oversight plan. 

11 ‘‘(b) RECOMMENDATIONS BEFORE SUBMISSION.—In 

12 order to provide guidance to State highway safety agencies 

13 on matters that should be addressed in the State highway 

14 safety program goals and initiatives as part of its highway 

15 safety plan before the plan is submitted for review, the Ad16 ministrator shall provide non-binding data-based rec17 ommendations to each State at least 90 days before the date 

18 on which the plan is to be submitted for approval. 

19 ‘‘(c) STATE PROGRAM REVIEW.—The Administrator 

20 shall— 

21 ‘‘(1) conduct a program improvement review of 

22 any State that does not make substantial progress 

23 over a 3-year period in meeting its priority program 

24 goals; and 
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1 ‘‘(2) provide technical assistance and safety pro2 gram recommendations to the State for any goal not 

3 achieved. 

4 ‘‘(d) REGIONAL HARMONIZATION.—The Administra5 tion and the Inspector General of the Department of Trans6 portation shall undertake a State grant administrative re7 view of the practices and procedures of the management re8 views and program reviews conducted by Administration 

9 regional offices and formulate a report of best practices to 

10 be completed within 180 days after the date of enactment 

11 of the Highway Safety Grant Program Reauthorization Act 

12 of 2004. 

13 ‘‘(e) BEST PRACTICES GUIDELINES.— 

14 ‘‘(1) UNIFORM GUIDELINES.—The Administra15 tion shall issue uniform management review and pro16 gram review guidelines based on the report under sub17 section (d). Each regional office shall use the guide18 lines in executing its State administrative review du19 ties. 

20 ‘‘(2) PUBLICATION.—The Administration shall 

21 make the following documents available via the Inter22 net upon their completion: 

23 ‘‘(A) The Administration’s management re24 view and program review guidelines. 

25 ‘‘(B) State highway safety plans. 
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1 ‘‘(C) State annual accomplishment reports. 

2 ‘‘(D) The Administration’s State manage3 ment reviews. 

4 ‘‘(E) The Administration’s State program 

5 improvement plans. 

6 ‘‘(3) REPORTS TO STATE HIGHWAY SAFETY

7 AGENCIES.—The Administrator may not make a 

8 plan, report, or review available under paragraph (2) 

9 that is directed to a State highway safety agency 

10 until after it has been submitted to that agency. 

11 ‘‘(f) GENERAL ACCOUNTING OFFICE REVIEW.—The 

12 General Accounting Office shall analyze the effectiveness of 

13 the National Highway Traffic Safety Administration’s 

14 oversight of traffic safety grants by seeking to determine the 

15 usefulness of the Administration’s advice to the States re16 garding grants administration and State activities, the ex17 tent to which the States incorporate the Administration’s 

18 recommendation into their highway safety plans and pro19 grams, and improvements that result in a State’s highway 

20 safety program that may be attributable to the Administra21 tion’s recommendations. Based on this analysis, the General 

22 Accounting Office shall submit a report by not later than 

23 the end of fiscal year 2008 to the House of Representatives 

24 Committee on Transportation and Infrastructure and the 
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1 Senate Committee on Commerce, Science, and Transpor2 tation.’’. 

3 (b) CONFORMING AMENDMENT.—The chapter analysis 

4 for chapter 4, as amended by section 4111, is amended by 

5 inserting after the item relating to section 412 the following: 

‘‘413. Agency accountability.’’. 

6 PART II—SPECIFIC VEHICLE SAFETY-RELATED 

7 RULINGS 

8 SEC. 4151. AMENDMENT OF TITLE 49, UNITED STATES CODE. 

9 Except as otherwise specifically provided, whenever in 

10 this subpart an amendment is expressed in terms of an 

11 amendment to a section or other provision of law, the ref12 erence shall be considered to be made to a section or other 

13 provision of title 49, United States Code. 

14 SEC. 4152. VEHICLE CRASH EJECTION PREVENTION. 

15 (a) IN GENERAL.—Subchapter II of chapter 301 is 

16 amended by adding at the end the following: 

17 ‘‘§ 30128. Vehicle accident ejection protection 

18 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

19 shall prescribe a safety standard under this chapter or up20 grade existing Federal motor vehicle safety standards to re21 duce complete and partial occupant ejection from motor ve22 hicles with a gross vehicle weight rating of not more than 

23 10,000 pounds that are involved in accidents that present 

24 a risk of occupant ejection. In formulating the safety stand25 ard, the Secretary shall consider the ejection-mitigation ca-
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1 pabilities of safety technologies, such as advanced side glaz2 ing, side curtains, and side impact air bags. 

3 ‘‘(b) DOOR LOCK AND RETENTION STANDARD.—The 

4 Secretary shall upgrade Federal Motor Vehicle Safety 

5 Standard No. 206 to require manufacturers of new motor 

6 vehicles with a gross vehicle weight rating of not more than 

7 10,000 pounds that are distributed in commerce for sale in 

8 the United States to make such modifications to door locks, 

9 door latches, and retention components of doors in such ve10 hicles as the Secretary determines to be necessary to reduce 

11 occupant ejection from such vehicles in motor vehicle acci12 dents.’’. 

13 (b) RULEMAKING DEADLINES.— 

14 (1) RULEMAKING.—The Secretary of Transpor15 tation shall issue— 

16 (A) a notice of a proposed rulemaking 

17 under section 30128 of title 49, United States 

18 Code, not later than June 30, 2006; and 

19 (B) a final rule under that section not later 

20 than 18 months after the publication of the no21 tice of proposed rulemaking. 

22 (2) EFFECTIVE DATE OF REQUIREMENTS.—In 

23 the final rule, the Secretary shall set forth effective 

24 dates for the requirements contained in the rule. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated to the Secretary of Transpor3 tation $500,000 for each of fiscal years 2004 and 2005 to 

4 promulgate rules under section 30128 of title 49, United 

5 States Code. 

6 (d) CONFORMING AMENDMENT.—The chapter analysis 

7 for chapter 301 is amended by inserting after the item relat8 ing to section 30127 the following: 

‘‘30128. Vehicle accident ejection protection.’’. 

9 SEC. 4153. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY 

10 STUDY. 

11 (a) IN GENERAL.—The Administrator of the National 

12 Highway Traffic Safety Administration shall conduct a 

13 study of effective methods for reducing the incidence of in14 jury and death outside of parked passenger motor vehicles 

15 with a gross vehicle weight rating of not more than 10,000 

16 pounds attributable to movement of such vehicles. The Ad17 ministrator shall complete the study within 1 year after 

18 the date of enactment of this Act and report its findings 

19 to the Senate Committee on Commerce, Science, and Trans20 portation and the House of Representatives Committee on 

21 Energy and Commerce not later than 5 months after the 

22 date of enactment of this Act. 

23 (b) SPECIFIC ISSUES TO BE COVERED.—The study re24 quired by subsection (a) shall— 
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1 (1) include an analysis of backover prevention 

2 technology; 

3 (2) identify, evaluate, and compare the available 

4 technologies for detecting people or objects behind a 

5 motor vehicle with a gross vehicle weight rating of not 

6 more than 10,000 pounds for their accuracy, effective7 ness, cost, and feasibility for installation; and 

8 (3) provide an estimate of cost savings that 

9 would result from widespread use of backover preven10 tion devices and technologies in motor vehicles with a 

11 gross vehicle weight rating of not more than 10,000 

12 pounds, including savings attributable to the preven13 tion of— 

14 (A) injuries and fatalities; and 

15 (B) damage to bumpers and other motor ve16 hicle parts and damage to other objects. 

17 SEC. 4154. VEHICLE BACKOVER DATA COLLECTION. 

18 In conjunction with the study required in section 4153, 

19 the National Highway Traffic Safety Administration may 

20 establish a method to collect and maintain data on the 

21 number and types of injuries and deaths involving motor 

22 vehicles with a gross vehicle weight rating of not more than 

23 10,000 pounds in non-traffic, non-accident incidents to as24 sist in the analysis required in section 4153 of this Act re25 garding the inclusion of backover prevention technologies in 
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1 motor vehicles with a gross vehicle weight rating of not more 

2 than 10,000 pounds. 

3 SEC. 4155. AGGRESSIVITY AND INCOMPATIBILITY REDUC4 TION STANDARD. 

5 (a) IN GENERAL.—Subchapter II of chapter 301, as 

6 amended by section 4152, is amended by adding at the end 

7 the following: 

8 ‘‘§ 30129. Vehicle incompatibility and aggressivity re9 duction standard 

10 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

11 shall issue motor vehicle safety standards to reduce vehicle 

12 incompatibility and aggressivity for motor vehicles with a 

13 gross vehicle weight rating of not more than 10,000 pounds. 

14 In formulating the standards, the Secretary shall consider 

15 factors such as bumper height, weight, and any other design 

16 characteristics necessary to ensure better management of 

17 crash forces in frontal and side impact crashes among dif18 ferent types, sizes, and weights of motor vehicles with a 

19 gross vehicle weight rating of not more than 10,000 pounds 

20 in order to reduce occupant deaths and injuries. 

21 ‘‘(b) STANDARDS.—The Secretary shall develop a 

22 standard rating metric to evaluate compatibility and 

23 aggressivity among motor vehicles with a gross vehicle 

24 weight rating of not more than 10,000 pounds. 
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1 ‘‘(c) PUBLIC INFORMATION.—The Secretary shall cre2 ate a public information program that includes vehicle rat3 ings based on risks posed by vehicle incompatibility and 

4 aggressivity to occupants, risks posed by vehicle incompati5 bility and agressivity to other motorists, and combined risks 

6 posed by vehicle incompatibility and agressivity by vehicle 

7 make and model.’’. 

8 (b) RULEMAKING DEADLINES.— 

9 (1) RULEMAKING.—The Secretary of Transpor10 tation shall issue— 

11 (A) a notice of a proposed rulemaking 

12 under section 30129 of title 49, United States 

13 Code, not later than January 31, 2007; and 

14 (B) a final rule under that section not later 

15 than 18 months after the publication of the no16 tice of proposed rulemaking. 

17 (2) EFFECTIVE DATE OF REQUIREMENTS.—In 

18 the final rule, the Secretary shall set forth effective 

19 dates for the requirements contained in the rule. 

20 (c) CONFORMING AMENDMENT.—The chapter analysis 

21 for chapter 301 is amended by inserting after the item relat22 ing to section 30128 the following: 

‘‘30129. Vehicle incompatibility and aggressivity reduction standard.’’. 
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1 SEC. 4156. IMPROVED CRASHWORTHINESS. 

2 (a) IMPROVED CRASHWORTHINESS.—Subchapter II of 

3 chapter 301, as amended by section 4155, is amended by 

4 adding at the end the following: 

5 ‘‘§ 30130. Improved crashworthiness of motor vehicles 

6 ‘‘(a) ROLLOVERS.— 

7 ‘‘(1) IN GENERAL.—The Secretary of Transpor8 tation shall prescribe a motor vehicle safety standard 

9 under this chapter for rollover crashworthiness stand10 ards for motor vehicles with a gross weight rating of 

11 not more than 10,000 pounds. In formulating the 

12 safety standard, the Secretary shall consider the pre13 scription of a roof strength standard based on dy14 namic tests that realistically duplicate the actual 

15 forces transmitted to a passenger motor vehicle during 

16 an on-roof rollover crash, and shall consider safety 

17 technologies and design improvements such as— 

18 ‘‘(A) improved seat structure and safety belt 

19 design, including seat belt pretensioners; 

20 ‘‘(B) side impact head protection airbags; 

21 and 

22 ‘‘(C) roof injury protection measures. 

23 ‘‘(2) ROLLOVER RESISTANCE STANDARD.—The 

24 Secretary shall prescribe a motor vehicle safety stand25 ard under this chapter to improve on the basic design 

26 characteristics of motor vehicles with a gross vehicle 
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1 weight rating of not more than 10,000 pounds to in2 crease their resistance to rollover. The Secretary shall 

3 also consider additional technologies to improve the 

4 handling of motor vehicles with a gross vehicle weight 

5 rating of not more than 10,000 pounds and thereby 

6 reduce the likelihood of vehicle instability and roll7 overs. 

8 ‘‘(3) STUDY.—The Secretary shall conduct a 

9 study on electronic stability control systems and other 

10 technologies designed to improve the handling of 

11 motor vehicles with a gross vehicle weight rating of 

12 not more than 10,000 pounds and shall report the re13 sults of that study to the Senate Committee on Com14 merce, Science, and Transportation and the House of 

15 Representatives Committee on Transportation and 

16 Infrastructure by December 31, 2005. 

17 ‘‘(b) FRONTAL IMPACT STANDARDS AND CRASH

18 TESTS.— 

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

20 a motor vehicle safety standard under this chapter or 

21 upgrade existing Federal motor vehicle safety stand22 ards to improve the protection of occupants in frontal 

23 impact crashes involving motor vehicles with a gross 

24 vehicle weight rating of not more than 10,000 pounds. 
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1 ‘‘(2) TEST METHODOLOGY.—In determining the 

2 standard under paragraph (1), the Secretary shall— 

3 ‘‘(A) evaluate additional test barriers and 

4 measurements of occupant head impact and neck 

5 injuries; and 

6 ‘‘(B) review frontal impact criteria, includ7 ing consideration of criteria established by the 

8 Insurance Institute for Highway Safety. 

9 ‘‘(c) SIDE IMPACT STANDARDS AND CRASH TESTS.— 

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

11 a motor vehicle safety standard under this chapter or 

12 upgrade existing Federal motor vehicle safety stand13 ards to improve the protection afforded to occupants 

14 in side impact crashes involving motor vehicles with 

15 a gross vehicle weight rating of not more than 10,000 

16 pounds. 

17 ‘‘(2) TEST METHODOLOGY.—In prescribing the 

18 standard under paragraph (1), the Secretary shall— 

19 ‘‘(A) evaluate additional test barriers and 

20 measurements of occupant head impact and neck 

21 injuries; 

22 ‘‘(C) consider the need for additional and 

23 new crash test dummies that represent the full 

24 range of occupant sizes and weights; and 
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1 ‘‘(D) review side impact criteria, including 

2 consideration of criteria established by the Insur3 ance Institute for Highway Safety.’’. 

4 (b) RULEMAKING DEADLINES.— 

5 (1) RULEMAKING.—The Secretary of Transpor6 tation shall— 

7 (A) issue a notice of a proposed rulemaking 

8 under section 30130 of title 49, United States 

9 Code, not later than June 30, 2006; and 

10 (B) issue a final rule not later than 18 

11 months after publication of the notice of pro12 posed rulemaking. 

13 (2) EFFECTIVE DATE OF REQUIREMENTS.—In 

14 the final rule, the Secretary shall set forth effective 

15 dates for the requirements contained in this rule. 

16 (c) CONFORMING AMENDMENT.—The chapter analysis 

17 for chapter 301 is amended by inserting after the item relat18 ing to section 30129 the following: 

‘‘30130. Improved crashworthiness of passenger motor vehicles.’’. 

19 SEC. 4157. 15-PASSENGER VANS. 

20 (a) IN GENERAL.—The Secretary of Transportation 

21 shall initiate a rulemaking and issue a final regulation not 

22 later than September 31, 2005, to include all 15-passenger 

23 vans with a gross vehicle weight rating of not more than 

24 10,000 pounds in the National Highway Traffic Safety Ad25 ministration’s dynamic rollover testing program and re-
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1 quire such vans to comply with all existing and prospective 

2 Federal Motor Vehicle Safety Standards for occupant pro3 tection and vehicle crash avoidance that are relevant to such 

4 vehicles. 

5 (b) NEW CAR ASSESSMENT PROGRAM.—The Secretary 

6 shall initiate a rulemaking and issue a final regulation not 

7 later than September 31, 2005, to include all 15-passenger 

8 vans with a gross vehicle weight of not more than 10,000 

9 pounds in the Administration’s New Car Assessment Pro10 gram rollover resistance program. 

11 (c) VEHICLE CONTROL TECHNOLOGY FOR 15-PAS12 SENGER VANS.—The National Highway Traffic Safety Ad13 ministration shall evaluate and test the potential of techno14 logical systems, particularly electronic stability control sys15 tems and rollover warning systems, to assist drivers in 

16 maintaining control of 15-passenger vans with a gross vehi17 cle weight rating of not more than 10,000 pounds. 

18 (d) CERTAIN SPECIALIZED VEHICLES EXCLUDED.—In 

19 this section, the term ‘‘15-passenger van’’ does not include 

20 an ambulance, tow truck, or other vehicle designed pri21 marily for the transportation of property or special purpose 

22 equipment. 
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1 SEC. 4158. ADDITIONAL SAFETY PERFORMANCE CRITERIA 

2 FOR TIRES. 

3 (a) STRENGTH AND ROAD HAZARD PROTECTION.— 

4 The Secretary of Transportation shall issue a final rule to 

5 upgrade Federal Motor Vehicle Safety Standard No. 139 to 

6 include strength and road hazard protection safety perform7 ance criteria for light vehicle tires, which are criteria that 

8 were not addressed in the June 2003 final rule mandated 

9 by the Transportation Recall Enhancement, Accountability, 

10 and Documentation Act of 2000. 

11 (b) RESISTANCE TO BEAD UNSEATING AND AGING.— 

12 The Secretary of Transportation shall issue a final rule to 

13 upgrade Federal Motor Vehicle Safety Standard No. 139 to 

14 include resistance to bead unseating and aging safety per15 formance criteria for passenger motor vehicle tires, which 

16 are criteria that were not addressed in the June, 2003, final 

17 rule mandated by the Transportation Recall Enhancement, 

18 Accountability, and Documentation Act of 2000. 

19 (c) RULEMAKING DEADLINES.—The Secretary of 

20 Transportation shall— 

21 (1) issue a notice of proposed rulemaking under 

22 subsection (a) not later than June 30, 2005, and 

23 under subsection(b) not later than December 31, 2005; 

24 and 

25 (2) issue a final rule relating to subsection (a) 

26 not later than 18 months after June 30, 2005, and a 
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1 final rule under subsection (b) not later than 18 

2 months after December 31, 2005. 

3 (d) TECHNOLOGY USE AND REPORT.—The Secretary 

4 shall reconsider the use of shearography analysis, on a sam5 pling basis, for regulatory compliance and the Adminis6 trator of the National Highway Traffic Safety Administra7 tion shall report to the Senate Committee on Commerce, 

8 Science, and Transportation and the House of Representa9 tives Committee on Transportation and Infrastructure on 

10 the most cost effective methods of using such technology 

11 within 2 years after the date of enactment of the Highway 

12 Safety Grant Program Reauthorization Act of 2004. 

13 SEC. 4159. SAFETY BELT USE REMINDERS. 

14 (a) NOTICE OF PROPOSED RULES TO ENCOURAGE

15 MORE SEAT BELT USE.—Not later than 12 months after 

16 the date of enactment of this Act, the Secretary of Transpor17 tation shall issue a Notice of Proposed Rulemaking to 

18 amend the Federal Motor Vehicle Safety Standard No. 208 

19 for motor vehicles with a gross vehicle weight rating of not 

20 more than 10,000 pounds to encourage increased seat belt 

21 usage by drivers and passengers. The proposed rulemaking 

22 shall take into account the potential safety benefits and pub23 lic acceptability of alternative means to encourage increased 

24 seat belt usage, including intermittent or continuous audi25 ble or visual reminders when a driver or passenger is not 
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1 wearing a seat belt, features to prevent operation of conven2 ience or entertainment features of the vehicle when a driver 

3 or passenger is not wearing a seat belt, and shall consider 

4 technology, including but not limited to technology identi5 fied by the National Academy of Sciences in its study of 

6 the potential benefits of seat belt usage reminder tech7 nologies. 

8 (b) FINAL RULE.—Not later than 24 months after the 

9 date of enactment of this Act, the Secretary shall issue the 

10 final rule required by subsection (a). 

11 (c) BUZZER LAW.— 

12 (1) IN GENERAL.—Section 30124 is amended— 

13 (A) by striking ‘‘not’’ the first place it ap14 pears; and 

15 (B) by striking ‘‘except’’ and inserting ‘‘in16 cluding’’. 

17 (2) CONFORMING AMENDMENT.—Section 30122 

18 is amended by striking subsection (d). 

19 SEC. 4160. MISSED DEADLINES REPORTS. 

20 (a) IN GENERAL.—If the Secretary of Transportation 

21 fails to meet any rulemaking deadline established in this 

22 subtitle, the Secretary shall transmit a report to the Senate 

23 Committee on Commerce, Science, and Transportation and 

24 the House of Representatives Committee on Transportation 
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1 and Infrastructure within 90 days after missing the dead2 line— 

3 (1) explaining why the Secretary failed to meet 

4 the deadline; and 

5 (2) setting forth a date by which the Secretary 

6 anticipates that the rulemaking will be made. 

7 (b) CONSIDERATION OF EFFECTS.—The Secretary of 

8 Transportation shall consider and report the potential con9 sequences, in terms of the number of deaths and the number 

10 and severity of injuries, that may result from not meeting 

11 any such deadline. 

12 SEC. 4161. GRANTS FOR IMPROVING CHILD PASSENGER 

13 SAFETY PROGRAMS. 

14 (a) IN GENERAL.—Chapter 4 of title 23, United States 

15 Code, as amended by section 4112 of this Act, is amended 

16 by adding at the end the following: 

17 ‘‘§ 414. Booster seat incentive grants 

18 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

19 shall make a grant under this section to any eligible State. 

20 ‘‘(b) ELIGIBILITY REQUIREMENTS.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall make a 

22 grant to each State that, as determined by the Sec23 retary, enacts or has enacted, and is enforcing a law 

24 requiring that children riding in passenger motor ve25 hicles (as defined in section 405(d)(4)) who are too 
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1 large to be secured in a child safety seat be secured 

2 in a child restraint (as defined in section 7(1) of 

3 Anton’s Law (49 U.S.C. 30127 note)) that meets re4 quirements prescribed by the Secretary under section 

5 3 of Anton’s Law. 

6 ‘‘(2) YEAR IN WHICH FIRST ELIGIBLE.— 

7 ‘‘(A) EARLY QUALIFICATION.—A State that 

8 has enacted a law described in paragraph (1) 

9 that is in effect before October 1, 2005, is first 

10 eligible to receive a grant under subsection (a) in 

11 fiscal year 2006. 

12 ‘‘(B) SUBSEQUENT QUALIFICATION.—A 

13 State that enacts a law described in paragraph 

14 (1) that takes effect after September 30, 2005, is 

15 first eligible to receive a grant under subsection 

16 (a) in the first fiscal year beginning after the 

17 date on which the law is enacted. 

18 ‘‘(3) CONTINUING ELIGIBILITY.—A State that is 

19 eligible under paragraph (1) to receive a grant may 

20 receive a grant during each fiscal year listed in sub21 section (f) in which it is eligible. 

22 ‘‘(4) MAXIMUM NUMBER OF GRANTS.—A State 

23 may not receive more than 4 grants under this sec24 tion. 
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1 ‘‘(c) GRANT AMOUNT.—Amounts available for grants 

2 under this section in any fiscal year shall be apportioned 

3 among the eligible States on the basis of population. 

4 ‘‘(d) USE OF GRANT AMOUNTS.— 

5 ‘‘(1) IN GENERAL.—Of the amounts received by 

6 a State under this section for any fiscal year— 

7 ‘‘(A) 50 percent shall be used for the en8 forcement of, and education to promote public 

9 awareness of, State child passenger protection 

10 laws; and 

11 ‘‘(B) 50 percent shall be used to fund pro12 grams that purchase and distribute child booster 

13 seats, child safety seats, and other appropriate 

14 passenger motor vehicle child restraints to indi15 gent families without charge. 

16 ‘‘(2) REPORT.—Within 60 days after the State 

17 fiscal year in which a State receives a grant under 

18 this section, the State shall transmit to the Secretary 

19 a report documenting the manner in which grant 

20 amounts were obligated or expended and identifying 

21 the specific programs supports by grant funds. The 

22 report shall be in a form prescribed by the Secretary 

23 and may be combined with other State grant report24 ing requirements under this chapter. 
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1 ‘‘(e) DEFINITION OF CHILD SAFETY SEAT.—The term 

2 ‘child safety seat’ means any device (except safety belts (as 

3 such term is defined in section 405(d)(5)), designed for use 

4 in a motor vehicle (as such term is defined in section 

5 405(d)(1)) to restrain, seat, or position a child who weighs 

6 50 pounds or less. 

7 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are 

8 authorized to be appropriated to the Secretary of Transpor9 tation, out of the Highway Trust Fund— 

10 ‘‘(1) $18,000,000 for fiscal year 2006; 

11 ‘‘(2) $20,000,000 for fiscal year 2007; 

12 ‘‘(3) $25,000,000 for fiscal year 2008; and 

13 ‘‘(4) $30,000,000 for fiscal year 2009.’’. 

14 (b) CLERICAL AMENDMENT.—The chapter analysis for 

15 chapter 4 of title 23, United States Code, is amended by 

16 inserting after the item relating to section 411 the following: 

‘‘414. Booster seat incentive grants.’’. 

17 SEC. 4162. AUTHORIZATION OF APPROPRIATIONS. 

18 There are authorized to be appropriated to the Sec19 retary of Transportation to carry out this subtitle and 

20 chapter 301 of title 49, United States Code— 

21 (1) $130,500,000 for fiscal year 2004; 

22 (2) $133,500,000 for fiscal year 2005; 

23 (3) $133,600,000 for fiscal year 2006; 

24 (4) $134,500,000 for fiscal year 2007; 

25 (5) $138,000,000 for fiscal year 2008; and 
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1 (6) $141,000,000 for fiscal year 2009. 

2 PART III—MISCELLANEOUS PROVISIONS 

3 SEC. 4171. DRIVER LICENSING AND EDUCATION. 

4 (a) NATIONAL OFFICE OF DRIVER LICENSING AND

5 EDUCATION.—Section 105 of title 49, United States Code, 

6 is amended by adding at the end the following new sub7 section: 

8 ‘‘(f)(1) There is a National Office of Driver Licensing 

9 and Education in the National Highway Traffic Safety Ad10 ministration. 

11 ‘‘(2) The head of the National Office of Driver Licens12 ing and Education is the Director. 

13 ‘‘(3) The functions of the National Office of Driver Li14 censing and Education are as follows: 

15 ‘‘(A) To provide States with services for coordi16 nating the motor vehicle driver training and licensing 

17 programs of the States. 

18 ‘‘(B) To develop and make available to the States 

19 a recommended comprehensive model for motor vehicle 

20 driver education and graduated licensing that incor21 porates the best practices in driver education and 

22 graduated licensing, including best practices with re23 spect to— 

24 ‘‘(i) vehicle handling and crash avoidance; 

25 ‘‘(ii) driver behavior and risk reduction; 
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1 ‘‘(iii) roadway features and associated safe2 ty implications; 

3 ‘‘(iv) roadway interactions involving all 

4 types of vehicles and road users, such as car5 truck and pedestrian-car interactions; 

6 ‘‘(v) parent education; and 

7 ‘‘(vi) other issues identified by the Director. 

8 ‘‘(C) To carry out such research (pursuant to co9 operative agreements or otherwise) and undertake 

10 such other activities as the Director determines appro11 priate to develop and, on an ongoing basis, improve 

12 the recommended comprehensive model. 

13 ‘‘(D) To provide States with technical assistance 

14 for the implementation and deployment of the motor 

15 vehicle driver education and licensing comprehensive 

16 model recommended under subparagraph (B). 

17 ‘‘(E) To develop and recommend to the States 

18 methods for harmonizing the presentation of motor 

19 vehicle driver education and licensing with the re20 quirements of multistage graduated licensing systems, 

21 including systems described in section 410(c)(4) of 

22 title 23, and to demonstrate and evaluate the effective23 ness of those methods in selected States. 

24 ‘‘(F) To assist States with the development and 

25 implementation of programs to certify driver edu-
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1 cation instructors, including the development and im2 plementation of proposed uniform certification stand3 ards. 

4 ‘‘(G) To provide States with financial assistance 

5 under section 412 of title 23 for— 

6 ‘‘(i) the implementation of the motor vehicle 

7 driver education and licensing comprehensive 

8 model recommended under subparagraph (B); 

9 ‘‘(ii) the establishment or improved admin10 istration of multistage graduated licensing sys11 tems; and 

12 ‘‘(iii) the support of other improvements in 

13 motor vehicle driver education and licensing pro14 grams. 

15 ‘‘(H) To evaluate the effectiveness of the com16 prehensive model recommended under subparagraph 

17 (B). 

18 ‘‘(I) To examine different options for delivering 

19 driver education in the States. 

20 ‘‘(J) To perform such other functions relating to 

21 motor vehicle driver education or licensing as the Sec22 retary may require. 

23 ‘‘(4) Not later than 42 months after the date of the 

24 enactment of the Safe, Accountable, Flexible, and Efficient 

25 Transportation Equity Act of 2004, the Director shall sub-
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1 mit to Congress a report on the progress made by the Na2 tional Office of Driver Licensing and Education with re3 spect to the functions under paragraph (3).’’. 

4 (b) GRANT PROGRAM FOR IMPROVEMENT OF DRIVER

5 EDUCATION AND LICENSING.— 

6 (1) AUTHORITY.— 

7 (A) IN GENERAL.—Chapter 4 of title 23, 

8 United States Code, is amended by adding at the 

9 end the following new section: 

10 ‘‘SEC. 412. DRIVER EDUCATION AND LICENSING. 

11 ‘‘(a) AUTHORITY.— 

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

13 out a program to provide States, by grant, with fi14 nancial assistance to support the improvement of 

15 motor vehicle driver education programs and the es16 tablishment and improved administration of grad17 uated licensing systems, including systems described 

18 in section 410(c)(4) of this title. 

19 ‘‘(2) ADMINISTRATIVE OFFICE.—The Secretary 

20 shall administer the program under this section 

21 through the Director of the National Office of Driver 

22 Licensing and Education. 

23 ‘‘(b) ELIGIBILITY REQUIREMENTS.— 

24 ‘‘(1) REGULATIONS.—The Secretary shall pre25 scribe in regulations the eligibility requirements, ap-
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1 plication and approval procedures and standards, 

2 and authorized uses of grant proceeds for the grant 

3 program under this section. The regulations shall, at 

4 a minimum, authorize use of grant proceeds for the 

5 following activities: 

6 ‘‘(A) Quality assurance testing, including 

7 follow-up testing to monitor the effectiveness of— 

8 ‘‘(i) driver licensing and education 

9 programs; 

10 ‘‘(ii) instructor certification testing; 

11 and 

12 ‘‘(iii) other statistical research de13 signed to evaluate the performance of driver 

14 education and licensing programs. 

15 ‘‘(B) Improvement of motor vehicle driver 

16 education curricula. 

17 ‘‘(C) Training of instructors for motor vehi18 cle driver education programs. 

19 ‘‘(D) Testing and evaluation of motor vehi20 cle driver performance. 

21 ‘‘(E) Public education and outreach regard22 ing motor vehicle driver education and licensing. 

23 ‘‘(F) Improvements with respect to State 

24 graduated licensing programs, as well as related 

25 enforcement activities. 
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1 ‘‘(2) CONSULTATION REQUIREMENT.—In pre2 scribing the regulations, the Secretary shall consult 

3 with the following: 

4 ‘‘(A) The Administrator of the National 

5 Highway Traffic Safety Administration. 

6 ‘‘(B) The heads of such other departments 

7 and agencies of the United States as the Sec8 retary considers appropriate on the basis of rel9 evant interests or expertise. 

10 ‘‘(C) Appropriate officials of the govern11 ments of States and political subdivisions of 

12 States. 

13 ‘‘(D) Other relevant experts. 

14 ‘‘(c) MAXIMUM AMOUNT OF GRANT.—The maximum 

15 amount of a grant of financial assistance for a program, 

16 project, or activity under this section may not exceed 75 

17 percent of the total cost of such program, project, or activ18 ity.’’. 

19 (B) CLERICAL AMENDMENT.—The table of 

20 sections at the beginning of such chapter is 

21 amended by adding at the end the following new 

22 item: 

‘‘412. Driver education and licensing.’’. 

23 (2) TIME FOR PROMULGATION OF REGULA24 TIONS.—The Secretary of Transportation shall pro25 mulgate the regulations under section 412(b) of title 
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1 23, United States Code (as added by paragraph (1)), 

2 not later than October 1, 2005. 

3 (c) GRANT PROGRAM FOR PUBLIC AWARENESS OF

4 ORGAN DONATION THROUGH DRIVER LICENSING PRO5 GRAMS.— 

6 (1) AUTHORITY.— 

7 (A) IN GENERAL.—Chapter 4 of title 23, 

8 United States Code (as amended by subsection 

9 (b)), is further amended by adding at the end the 

10 following new section: 

11 ‘‘SEC. 413. ORGAN DONATION THROUGH DRIVER LICENS12 ING. 

13 ‘‘(a) AUTHORITY.— 

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

15 out a program to provide eligible recipients, by grant, 

16 with financial assistance to carry out campaigns to 

17 increase public awareness of, and training on, au18 thority and procedures under State law to provide for 

19 the donation of organs through a declaration recorded 

20 on a motor vehicle driver license. 

21 ‘‘(2) ADMINISTRATIVE OFFICE.—The Secretary 

22 shall administer the program under this section 

23 through the Director of the National Office of Driver 

24 Licensing and Education. 

25 ‘‘(b) ELIGIBILITY REQUIREMENTS.— 
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1 ‘‘(1) REGULATIONS.—The Secretary shall pre2 scribe in regulations the eligibility requirements, ap3 plication and approval procedures and standards, 

4 and authorized uses of grant proceeds for the grant 

5 program under this section. 

6 ‘‘(2) CONSULTATION REQUIREMENT.—In pre7 scribing the regulations, the Secretary shall consult 

8 with the following: 

9 ‘‘(A) The Administrator of the National 

10 Highway Traffic Safety Administration. 

11 ‘‘(B) The heads of such other departments 

12 and agencies of the United States as the Sec13 retary considers appropriate on the basis of rel14 evant interests or expertise. 

15 ‘‘(C) Appropriate officials of the govern16 ments of States and political subdivisions of 

17 States. 

18 ‘‘(D) Representatives of private sector orga19 nizations recognized for relevant expertise.’’. 

20 (B) CLERICAL AMENDMENT.—The table of 

21 sections at the beginning of such chapter is 

22 amended by adding at the end the following new 

23 item: 

‘‘413. Organ donation through driver licensing.’’. 

24 (2) TIME FOR PROMULGATION OF REGULA25 TIONS.—The Secretary of Transportation shall pro-
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1 mulgate the regulations under section 413(b) of title 

2 23, United States Code (as added by paragraph (1)), 

3 not later than October 1, 2005. 

4 (d) STUDY OF NATIONAL DRIVER EDUCATION STAND5 ARDS.— 

6 (1) REQUIREMENT FOR STUDY.—The Secretary 

7 of Transportation shall carry out a study to deter8 mine whether the establishment and imposition of na9 tionwide minimum standards of motor vehicle driver 

10 education would improve national highway traffic 

11 safety or the performance and legal compliance of 

12 novice drivers. 

13 (2) TIME FOR COMPLETION OF STUDY.—The Sec14 retary shall complete the study not later than 2 years 

15 after the date of the enactment of this Act. 

16 (3) REPORT.—The Secretary shall publish a re17 port on the results of the study under this section not 

18 later than 2 years after the study is completed. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—Of the 

20 amounts available to carry out section 403 of title 23, 

21 United States Code, for each of the fiscal years 2005 through 

22 2010, $5,000,000 may be made available for each such fiscal 

23 year to carry out sections 412 and 413 of title 23, United 

24 States Code (as added by subsections (b) and (c), respec25 tively). 
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1 SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION 

2 DISCLOSURE ACT. 

3 (a) SAFETY LABELING REQUIREMENT.—Section 3 of 

4 the Automobile Information Disclosure Act (15 U.S.C. 

5 1232) is amended by adding at the end the following: 

6 ‘‘(g) if one or more safety ratings for such automobile 

7 have been assigned and formally published or released by 

8 the National Highway Traffic Safety Administration under 

9 the New Car Assessment Program, information about safety 

10 ratings that— 

11 ‘‘(1) includes a graphic depiction of the number 

12 of stars that corresponds to each such assigned safety 

13 rating displayed in a clearly differentiated fashion 

14 from stars indicating the unattained safety rating; 

15 ‘‘(2) refers to frontal impact crash tests, side im16 pact crash tests, and rollover resistance tests (whether 

17 or not such automobile has been assigned a safety rat18 ing for such tests), including statements that— 

19 ‘‘(A) frontal impact crash test ratings are 

20 based on risk of head and chest injury; 

21 ‘‘(B) side impact crash test ratings are 

22 based on risk of chest injury; and 

23 ‘‘(C) rollover resistance ratings are based on 

24 risk of rollover in the event of a single auto25 mobile crash; 
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1 ‘‘(3) is presented in a legible, visible, and promi2 nent fashion and covers at least— 

3 ‘‘(A) 8 percent of the total area of the label; 

4 or 

5 ‘‘(B) an area with a minimum length of 4 

1⁄2 inches and a minimum height of 3 1 6 ⁄2 inches; 

7 and 

8 ‘‘(4) contains a heading titled ‘Government Safe9 ty Information’ and a disclaimer including the fol10 lowing text: ‘Star ratings for frontal impact crash 

11 tests can only be compared to other vehicles in the 

12 same weight class and those plus or minus 250 

13 pounds. Side impact and rollover ratings can be com14 pared across all vehicle weights and classes. For more 

15 information on safety and testing, please visit http:/ 

16 /www.nhtsa.dot.gov’; and 

17 ‘‘(h) if an automobile has not been tested by the Na18 tional Highway Traffic Safety Administration under the 

19 New Car Assessment Program, or safety ratings for such 

20 automobile have not been assigned in one or more rating 

21 categories, a statement to that effect.’’. 

22 (b) REGULATIONS.—Not later than January 1, 2005, 

23 the Secretary of Transportation shall prescribe regulations 

24 to implement the labeling requirements under subsections 
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1 (g) and (h) of section 3 of such Act (as added by subsection 

2 (a)). 

3 (c) CONFORMING AND TECHNICAL AMENDMENTS.— 

4 Section 3 of such Act is further amended— 

5 (1) in subsection (e), by striking ‘‘and’’ after the 

6 semicolon; and 

7 (2) in subsection (f)— 

8 (A) by adding ‘‘and’’ at the end of para9 graph (3); and 

10 (B) by striking the period at the end and 

11 inserting a semicolon. 

12 (d) APPLICABILITY.—The labeling requirements under 

13 subsections (g) and (h) of section 3 of such Act (as added 

14 by subsection (a)), and the regulations prescribed under 

15 subsection (b), shall apply to new automobiles delivered on 

16 or after— 

17 (1) September 1, 2005, if the regulations under 

18 subsection (b) are prescribed not later than August 

19 31, 2004; or 

20 (2) September 1, 2006, if the regulations under 

21 subsection (b) are prescribed after August 31, 2004. 

22 SEC. 4173. CHILD SAFETY. 

23 (a) INCORPORATION OF CHILD DUMMIES IN SAFETY

24 TESTS.— 
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1 (1) RULEMAKING REQUIRED.—Not later than 2 

2 years after the date of the enactment of this Act, the 

3 Administrator of the National Highway Traffic Safe4 ty Administration shall conduct a rulemaking to in5 crease utilization of child dummies, including Hy6 brid-III child dummies, in motor vehicle safety tests, 

7 including crash tests, conducted by the Administra8 tion. 

9 (2) CRITERIA.—In conducting the rulemaking 

10 under subsection (a), the Administrator shall select 

11 motor vehicle safety tests in which the inclusion of 

12 child dummies will lead to— 

13 (A) increased understanding of crash dy14 namics with respect to children; and 

15 (B) measurably improved child safety. 

16 (3) REPORT.—Not later than one year after the 

17 date of the enactment of this Act, the Secretary of 

18 Transportation shall publish a report regarding the 

19 implementation of this section. 

20 (b) CHILD SAFETY IN ROLLOVER CRASHES.— 

21 (1) CONSUMER INFORMATION PROGRAM.—Not 

22 later than 2 years after the date of the enactment of 

23 this Act, the Secretary of Transportation shall imple24 ment a consumer information program relating to 

25 child safety in rollover crashes. The Secretary shall 
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1 make information related to the program available to 

2 the public following completion of the program. 

3 (2) CHILD DUMMY DEVELOPMENT.— 

4 (A) IN GENERAL.—The Administrator of the 

5 National Highway Traffic Safety Administra6 tion shall initiate the development of a biofidelic 

7 child crash test dummy capable of measuring in8 jury forces in a simulated rollover crash. 

9 (B) REPORTS.—The Secretary shall submit 

10 to Congress a report on progress related to such 

11 development— 

12 (i) not later than 1 year after the date 

13 of the enactment of this Act; and 

14 (ii) not later than 3 years after the 

15 date of the enactment of this Act. 

16 (c) REPORT ON ENHANCED VEHICLE SAFETY TECH17 NOLOGIES.—Not later than 2 years after the date of the en18 actment of this Act, the Secretary of Transportation shall 

19 submit to Congress a report that describes, evaluates, and 

20 determines the relative effectiveness of— 

21 (1) currently available and emerging tech22 nologies, including auto-reverse functions and child23 safe window switches, that are designed to prevent 

24 and reduce the number of injuries and deaths to chil25 dren left unattended inside parked motor vehicles, in-
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1 cluding injuries and deaths that result from 

2 hyperthermia or are related to power windows or 

3 power sunroofs; and 

4 (2) currently available and emerging technologies 

5 that are designed to improve the performance of safety 

6 belts with respect to the safety of occupants aged be7 tween 4 and 8 years old. 

8 (d) COMPLETION OF RULEMAKING REGARDING POWER

9 WINDOWS.—Not later than 180 days after the date of the 

10 enactment of this Act, the Secretary of Transportation 

11 shall— 

12 (1) complete the rulemaking initiated by the Na13 tional Highway Traffic Safety Administration that is 

14 ongoing on the date of the enactment of this Act and 

15 relates to a requirement that window switches be de16 signed to reduce the accidental closing by children of 

17 power windows; and 

18 (2) issue performance-based regulations to take 

19 effect not later than September 1, 2006, requiring that 

20 window switches or related technologies be designed to 

21 prevent the accidental closing by children of power 

22 windows. 

23 (e) DATABASE ON INJURIES AND DEATHS IN NON24 TRAFFIC, NONCRASH EVENTS.— 
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1 (1) IN GENERAL.—The Secretary of Transpor2 tation shall establish a new database of, and collect 

3 data regarding, injuries and deaths in nontraffic, 

4 noncrash events involving motor vehicles. The data5 base shall include information regarding— 

6 (A) the number, types, and proximate 

7 causes of injuries and deaths resulting from such 

8 events; 

9 (B) the characteristics of motor vehicles in10 volved in such events; 

11 (C) the characteristics of the motor vehicle 

12 operators and victims involved in such events; 

13 and 

14 (D) the presence or absence in motor vehi15 cles involved in such events of advanced tech16 nologies designed to prevent such injuries and 

17 deaths. 

18 (2) RULEMAKING.—The Secretary shall conduct 

19 a rulemaking regarding how to structure and compile 

20 the database. 

21 (3) AVAILABILITY.—The Secretary shall make the 

22 database available to the public. 

23 SEC. 4174. SAFE INTERSECTIONS. 

24 (a) IN GENERAL.—Chapter 2 of title 18, United States 

25 Code, is amended by adding at the end the following: 
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1 ‘‘§ 39. Traffic signal preemption transmitters 

2 ‘‘(a) OFFENSES.— 

3 ‘‘(1) SALE.—A person who provides for sale to 

4 unauthorized users a traffic signal preemption trans5 mitter in or affecting interstate or foreign commerce 

6 shall be fined not more than $10,000, imprisoned not 

7 more than 1 year, or both. 

8 ‘‘(2) POSSESSION.—A person who is an unau9 thorized user in possession of a traffic signal preemp10 tion transmitter in or affecting interstate or foreign 

11 commerce shall be fined not more than $10,000, im12 prisoned not more than 6 months, or both. 

13 ‘‘(b) DEFINITIONS.—In this section, the following defi14 nitions apply: 

15 ‘‘(1) TRAFFIC SIGNAL PREEMPTION TRANS16 MITTER.—The term ‘traffic signal preemption trans17 mitter’ means any device or mechanism that can 

18 change a traffic signal’s phase. 

19 ‘‘(2) UNAUTHORIZED USER.—The term ‘unau20 thorized user’ means a user of a traffic signal pre21 emption transmitter who is not a government ap22 proved user.’’. 

23 (b) CHAPTER ANALYSIS.—The chapter analysis for 

24 chapter 2 of title 18, United States Code, is amended by 

25 adding at the end the following: 

‘‘39. Traffic signal preemption transmitters.’’. 
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1 SEC. 4175. STUDY ON INCREASED SPEED LIMITS. 

2 (a) STUDY.— 

3 (1) IN GENERAL.—Not later than 2 years after 

4 the date of enactment of this Act, the Secretary shall 

5 conduct a study to examine the effects of increased 

6 speed limits enacted by States after 1995. 

7 (2) REQUIREMENTS.—The study shall collect em8 pirical data regarding— 

9 (A) increases or decreases in driving speeds 

10 on Interstate highways since 1995; 

11 (B) correlations between changes in driving 

12 speeds and accident, injury, and fatality rates; 

13 (C) correlations between posted speed limits 

14 and observed driving speeds; 

15 (D) the overall impact on motor vehicle 

16 safety resulting from the repeal of the national 

17 maximum speed limit in 1995; and 

18 (E) such other matters as the Secretary de19 termines to be appropriate. 

20 (b) REPORT.—Not later than 1 year after the date of 

21 completion of the study under subsection (a), the Secretary 

22 shall submit to Congress a report that describes the results 

23 of the study. 
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1 Subtitle B—Motor Carrier Safety 

2 and Unified Carrier Registration 

3 PART I—ADMINISTRATIVE MATTERS 

4 SEC. 4201. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED 

5 STATES CODE. 

6 (a) SHORT TITLE.—This subtitle may be cited as the 

7 ‘‘Motor Carrier Safety Reauthorization Act of 2004’’. 

8 (b) AMENDMENT OF TITLE 49, UNITED STATES

9 CODE.—Except as otherwise specifically provided, whenever 

10 in this subtitle an amendment is expressed in terms of an 

11 amendment to a section or other provision of law, the ref12 erence shall be considered to be made to a section or other 

13 provision of title 49, United States Code. 

14 SEC. 4202. REQUIRED COMPLETION OF OVERDUE REPORTS, 

15 STUDIES, AND RULEMAKINGS. 

16 (a) REQUIREMENT FOR COMPLETION.—By no later 

17 than 36 months after the date of enactment of this Act, the 

18 Secretary of Transportation shall complete all reports, stud19 ies, and rulemaking proceedings to issue regulations which 

20 Congress directed the Secretary to complete in previous laws 

21 and which are not yet completed, including the following: 

22 (1) Commercial Vehicle Driver Biometric Identi23 fier, section 9105, Truck and Bus Safety and Regu24 latory Reform Act of 1988. 
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1 (2) General Transportation of HAZMAT, section 

2 8(b), Hazardous Materials Transportation Uniform 

3 Safety Act of 1990. 

4 (3) Nationally Uniform System of Permits for 

5 Interstate Motor Carrier Transport of HAZMAT, sec6 tion 22, Hazardous Materials Transportation Uni7 form Safety Act of 1990. 

8 (4) Training for Entry-Level Drivers of Com9 mercial Motor Vehicles, section 4007 (a), Intermodal 

10 Surface Transportation Efficiency Act of 1991. 

11 (5) Minimum Training Requirements for Opera12 tors and for Training Instructors of Multiple Trailer 

13 Combination Vehicles, section 4007(b)(2), Intermodal 

14 Surface Transportation Efficiency Act of 1991. 

15 (6) Railroad-Highway Grade Crossing Safety, 

16 section 112, Hazardous Materials Transportation Au17 thorization Act of 1994. 

18 (7) Safety Performance History of New Drivers, 

19 section 114, Hazardous Materials Transportation Au20 thorization Act of 1994. 

21 (8) Motor Carrier Replacement Information and 

22 Registration System, section 103, ICC Termination 

23 Act of 1995. 

24 (9) General Jurisdiction Over Freight Forwarder 

25 Service, section 13531, ICC Termination Act of 1995. 
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1 (10) Waivers, Exemptions, and Pilot Programs, 

2 section 4007, Transportation Equity Act for the 

3 Twenty-First Century. 

4 (11) Safety Performance History of New Drivers, 

5 section 4014, Transportation Equity Act for the 

6 Twenty-First Century. 

7 (12) Performance-based CDL Testing, section 

8 4019, Transportation Equity Act for the Twenty9 First Century. 

10 (13) Improved Flow of Driver History Pilot Pro11 gram, section 4022, Transportation Equity Act for 

12 the Twenty-First Century. 

13 (14) Employee Protections, section 4023, Trans14 portation Equity Act for the Twenty-First Century. 

15 (15) Improved Interstate School Bus Safety, sec16 tion 4024, Transportation Equity Act for the Twenty17 First Century. 

18 (16) Federal Motor Carrier Safety Administra19 tion 2010 Strategy, section 104, Motor Carrier Safety 

20 Improvement Act of 1999. 

21 (17) New Motor Carrier Entrant Requirements, 

22 section 210, Motor Carrier Safety Improvement Act of 

23 1999. 
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1 (18) Certified Motor Carrier Safety Auditors, 

2 section 211, Motor Carrier Safety Improvement Act of 

3 1999. 

4 (19) Medical Certificate, section 215, Motor Car5 rier Safety Improvement Act of 1999. 

6 (20) Report on Any Pilots Undertaken to De7 velop Innovative Methods of Improving Motor Carrier 

8 Compliance with Traffic Laws, section 220, Motor 

9 Carrier Safety Improvement Act of 1999. 

10 (21) Status Report on the Implementation of 

11 Electronic Transmission of Data State-to-State on 

12 Convictions for All Motor Vehicle Control Law Viola13 tions for CDL Holders, section 221, Motor Carrier 

14 Safety Improvement Act of 1999. 

15 (22) Assessment of Civil Penalties, section 222, 

16 Motor Carrier Safety Improvement Act of 1999. 

17 (23) Truck Crash Causation Study, section 224, 

18 Motor Carrier Safety Improvement Act of 1999. 

19 (24) Drug Test Results Study, section 226, Motor 

20 Carrier Safety Improvement Act of 1999. 

21 (b) FINAL RULE REQUIRED.—Unless specifically per22 mitted by law, rulemaking proceedings shall be considered 

23 completed for purposes of this section only when the Sec24 retary has issued a final rule and the docket for the rule25 making proceeding is closed. 
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1 (c) SCHEDULE FOR COMPLETION.—No fewer than one2 third of the reports, studies, and rulemaking proceedings 

3 in subsection (a) shall be completed every 12 months after 

4 the date of enactment of this Act. The Inspector General 

5 of the Department of Transportation shall make an annual 

6 determination as to whether this schedule has been met. 

7 (d) FAILURE TO COMPLY.—If the Secretary fails to 

8 complete the required number of reports, studies, and rule9 making proceedings according to the schedule set forth in 

10 subsection (c) during any fiscal year, the Secretary shall 

11 allocate to the States $3,000,000 from the amount author12 ized by section 31104(i)(1) of title 49, United States Code, 

13 for administrative expenses of the Federal Motor Carrier 

14 Safety Administration to conduct additional compliance re15 views under section 31102 of that title instead of obligating 

16 or expending such amount for those administrative ex17 penses. 

18 (e) AMENDMENTS TO THE LISTED REPORTS, STUDIES, 

19 AND RULEMAKING PROCEEDINGS.—In addition to com20 pleting the reports, studies and rulemaking proceedings list21 ed in subsection (c), the Secretary shall— 

22 (1) amend the Interim Final Rule addressing 

23 New Motor Carrier Entrant Requirements to require 

24 that a safety audit be immediately converted to a 

25 compliance review and appropriate enforcement ac-
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1 tions be taken if the safety audit discloses acute safety 

2 violations by the new entrant; and 

3 (2) eliminate a proposed provision in the rule4 making proceeding addressing Commercial Van Oper5 ations Transporting Nine to Fifteen Passengers which 

6 exempts commercial van operations that operate with7 in a 75-mile radius. 

8 (f) COMPLETION OF NEW RULEMAKING PRO9 CEEDINGS.—Nothing in this section delays or changes the 

10 deadlines specified for new reports, studies, or rulemaking 

11 mandates contained in this title. 

12 (g) REPORT OF OTHER AGENCY ACTIONS.—Within 12 

13 months after the date of enactment of this Act, the Secretary 

14 shall submit to the Senate Committee on Commerce, 

15 Science, and Transportation and to the House Committee 

16 on Transportation and Infrastructure a report on the status 

17 of the following projects: 

18 (1) Rescinding the current regulation which pro19 hibits truck and bus drivers from viewing television 

20 and monitor screens while operating commercial vehi21 cles. 

22 (2) Incorporating Out-Of-Service Criteria regu23 lations enforced by the Federal Motor Carrier Safety 

24 Administration. 
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1 (3) Revision of the safety fitness rating system of 

2 motor carriers. 

3 (4) Amendment of Federal Motor Carrier Safety 

4 Administration rules of practice for conducting motor 

5 carrier administrative proceedings, investigations, 

6 disqualifications, and for issuing penalties. 

7 (5) Requiring commercial drivers to have a suffi8 cient functional speaking and reading comprehension 

9 of the English language. 

10 (6) Inspection, repair and maintenance of inter11 modal container chassis and trailers. 

12 SEC. 4203. CONTRACT AUTHORITY. 

13 Authorizations from the Highway Trust Fund (other 

14 than the Mass Transit Account) to carry out this subtitle 

15 shall be available for obligation on the date of their appor16 tionment or allocation or on October 1 of the fiscal year 

17 for which they are authorized, whichever occurs first. Ap18 proval by the Secretary of a grant with funds made avail19 able under this title imposes upon the United States Gov20 ernment a contractual obligation for payment of the Gov21 ernment’s share of costs incurred in carrying out the objec22 tives of the grant. 
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1 PART II—MOTOR CARRIER SAFETY 

2 SEC. 4221. MINIMUM GUARANTEE. 

3 There are authorized to be appropriated from the 

4 Highway Trust Fund (other than the Mass Transit Ac5 count) not less than 1.21 percent of the total amounts made 

6 available in any fiscal year from the Highway Trust Fund 

7 for purposes of this part. 

8 SEC. 4222. AUTHORIZATION OF APPROPRIATIONS. 

9 (a) ADMINISTRATIVE EXPENSES.—Section 31104 is 

10 amended by adding at the end the following: 

11 ‘‘(i) ADMINISTRATIVE EXPENSES.— 

12 ‘‘(1) There are authorized to be appropriated 

13 from the Highway Trust Fund (other than the Mass 

14 Transit Account) for the Secretary of Transportation 

15 to pay administrative expenses of the Federal Motor 

16 Carrier Safety Administration— 

17 ‘‘(A) $202,900,000 for fiscal year 2004; 

18 ‘‘(B) $206,200,000 for fiscal year 2005; 

19 ‘‘(C) $211,400,000 for fiscal year 2006; 

20 ‘‘(D) $217,500,000 for fiscal year 2007; 

21 ‘‘(E) $222,600,000 for fiscal year 2008; and 

22 ‘‘(F) $228,500,000 for fiscal year 2009. 

23 ‘‘(2) The funds authorized by this subsection 

24 shall be used for personnel costs; administrative infra25 structure; rent; information technology; programs for 

26 research and technology, information management, 
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1 regulatory development (including a medical review 

2 board and rules for medical examiners), performance 

3 and registration information system management, 

4 and outreach and education; other operating expenses 

5 and similar matters; and such other expenses as may 

6 from time to time become necessary to implement 

7 statutory mandates not funded from other sources. 

8 ‘‘(3) From the funds authorized by this section, 

9 the Secretary shall ensure that compliance reviews are 

10 completed on the motor carriers that have dem11 onstrated through performance data that they pose the 

12 highest safety risk. At a minimum, compliance re13 views shall be conducted within 6 months after when14 ever a carrier is rated as category A or B. 

15 ‘‘(4) The amounts made available under this sec16 tion shall remain available until expended. 

17 ‘‘(5) Of the funds authorized by paragraph (1), 

18 $6,750,000 in each of fiscal years 2004 through 2009 

19 shall be used to carry out the medical program under 

20 section 31149.’’. 

21 (b) AMENDMENT TO APPORTIONMENT PROVISION OF

22 TITLE 23.—Section 104(a) of title 23, United States Code, 

23 is amended— 

24 (1) by striking ‘‘exceed—’’ and so much of sub25 paragraph (A) as precedes clause (i) and inserting 
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‘‘exceed 11 1 ⁄6 percent of all sums so made available, as 

2 the Secretary determines necessary—’’; 

3 (2) by redesignating clause (i) and (ii) of sub4 paragraph (A) as subparagraphs (A) and (B), and 

5 indenting such clauses, as so redesignated, 2 em 

6 spaces; and 

7 (3) by striking ‘‘system; and’’ in subparagraph 

8 (B) as so redesignated, and all that follows through 

9 ‘‘research.’’ and inserting ‘‘system.’’. 

10 (c) GRANT PROGRAMS.—There are authorized to be ap11 propriated from the Highway Trust Fund (other than the 

12 Mass Transit Account) for the following Federal Motor Car13 rier Safety Administration programs: 

14 (1) Border enforcement grants under section 

15 31107 of title 49, United States Code— 

16 (A) $32,000,000 for fiscal year 2004; 

17 (B) $33,000,000 for fiscal year 2005; 

18 (C) $33,000,000 for fiscal year 2006; 

19 (D) $34,000,000 for fiscal year 2007; 

20 (E) $35,000,000 for fiscal year 2008; and 

21 (F) $36,000,000 for fiscal year 2009. 

22 (2) Performance and registration information 

23 system management grant program under 31109 of 

24 title 49, United States Code— 

25 (A) $4,000,000 for fiscal year 2004; 
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1 (B) $4,000,000 for fiscal year 2005; 

2 (C) $4,000,000 for fiscal year 2006; 

3 (D) $4,000,000 for fiscal year 2007; 

4 (E) $4,000,000 for fiscal year 2008; and 

5 (F) $4,000,000 for fiscal year 2009. 

6 (3) Commercial driver’s license and driver im7 provement program grants under section 31318 of 

8 title 49, United States Code— 

9 (A) $22,000,000 for fiscal year 2004; 

10 (B) $22,000,000 for fiscal year 2005; 

11 (C) $23,000,000 for fiscal year 2006; 

12 (D) $23,000,000 for fiscal year 2007; 

13 (E) $24,000,000 for fiscal year 2008; and 

14 (F) $25,000,000 for fiscal year 2009. 

15 (4) Deployment of the Commercial Vehicle Infor16 mations Systems and Networks established under sec17 tion 4241 of this title, $25,000,000 for each of fiscal 

18 years 2004 through 2009. 

19 (d) MOTOR CARRIER SAFETY ACCOUNT.—Funds made 

20 available under subsection (c) shall be administered in the 

21 account established in the Treasury entitled ‘‘Motor Carrier 

22 Safety 69–8055–0–7–401’’. 

23 (e) PERIOD OF AVAILABILITY.—The amounts made 

24 available under subsection (c) of this section shall remain 

25 available until expended. 
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1 SEC. 4223. MOTOR CARRIER SAFETY GRANTS. 

2 (a) MOTOR CARRIER SAFETY ASSISTANCE PRO3 GRAM.— 

4 (1) Section 31102 is amended— 

5 (A) by striking ‘‘activities by fiscal year 

6 2000;’’ in subsection (b)(1)(A) and inserting ‘‘ac7 tivities for commercial motor vehicles of pas8 sengers and freight;’’; 

9 (B) by striking ‘‘years before December 18, 

10 1991;’’ in subsection (b)(1)(E) and inserting 

11 ‘‘years’’; 

12 (C) by striking ‘‘and’’ after the semicolon in 

13 subsection (b)(1)(S); 

14 (D) by striking ‘‘personnel.’’ in subsection 

15 (b)(1)(T) and inserting ‘‘personnel;’’; 

16 (E) adding at the end of subsection (b)(1) 

17 the following: 

18 ‘‘(U) ensures that inspections of motor carriers of 

19 passengers are conducted at stations, terminals, bor20 der crossings, or maintenance facilities, except in the 

21 case of an imminent or obvious safety hazard; 

22 ‘‘(V) provides that the State will include in the 

23 training manual for the licensing examination to 

24 drive a non-commercial motor vehicle and a commer25 cial motor vehicle, information on best practices for 

26 driving safely in the vicinity of commercial motor ve-
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1 hicles and in the vicinity of non-commercial vehicles, 

2 respectively; and 

3 ‘‘(W) provides that the State will enforce the reg4 istration requirements of section 13902 by suspending 

5 the operation of any vehicle discovered to be operating 

6 without registration or beyond the scope of its reg7 istration.’’; and 

8 (F) by striking subsection (c) and inserting 

9 the following: 

10 ‘‘(c) USE OF GRANTS TO ENFORCE OTHER LAWS.— 

11 A State may use amounts received under a grant under 

12 subsection (a) of this section for the following activities: 

13 ‘‘(1) If the activities are carried out in conjunc14 tion with an appropriate inspection of the commer15 cial motor vehicle to enforce Government or State 

16 commercial motor vehicle safety regulations— 

17 ‘‘(A) enforcement of commercial motor vehi18 cle size and weight limitations at locations other 

19 than fixed weight facilities, at specific locations 

20 such as steep grades or mountainous terrains 

21 where the weight of a commercial motor vehicle 

22 can significantly affect the safe operation of the 

23 vehicle, or at ports where intermodal shipping 

24 containers enter and leave the United States; 

25 and 
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1 ‘‘(B) detection of the unlawful presence of a 

2 controlled substance (as defined under section 

3 102 of the Comprehensive Drug Abuse Prevention 

4 and Control Act of 1970 (21 U.S.C. 802)) in a 

5 commercial motor vehicle or on the person of any 

6 occupant (including the operator) of the vehicle. 

7 ‘‘(2) Documented enforcement of State traffic 

8 laws and regulations designed to promote the safe op9 eration of commercial motor vehicles, including docu10 mented enforcement of such laws and regulations 

11 against non-commercial motor vehicles when nec12 essary to promote the safe operation of commercial 

13 motor vehicles.’’. 

14 (2) Section 31103(b) is amended— 

15 (A) by inserting ‘‘(1)’’ after ‘‘ACTIVITIES.— 

16 ’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(2) NEW ENTRANT MOTOR CARRIER AUDIT

19 FUNDS.—From the amounts designated under section 

20 31104(f)(4), the Secretary may allocate new entrant 

21 motor carrier audit funds to States and local govern22 ments without requiring a matching contribution 

23 from such States or local governments.’’. 

24 (3) Section 31104(a) is amended to read as fol25 lows: 
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1 ‘‘(a) IN GENERAL.—There are authorized to be appro2 priated from the Highway Trust Fund (other than the Mass 

3 Transit Account) to carry out section 31102: 

4 ‘‘(1) Not more than $186,100,000 for fiscal year 

5 2004. 

6 ‘‘(2) Not more than $189,800,000 for fiscal year 

7 2005. 

8 ‘‘(3) Not more than $193,600,000 for fiscal year 

9 2006. 

10 ‘‘(4) Not more than $197,500,000 for fiscal year 

11 2007. 

12 ‘‘(5) Not more than $201,400,000 for fiscal year 

13 2008. 

14 ‘‘(6) Not more than $205,500,000 for fiscal year 

15 2009.’’. 

16 (4) Section 31104(f) is amended by striking 

17 paragraph (2) and inserting the following: 

18 ‘‘(2) HIGH-PRIORITY ACTIVITIES.—The Secretary 

19 may designate up to 5 percent of amounts available 

20 for allocation under paragraph (1) for States, local 

21 governments, and organizations representing govern22 ment agencies or officials for carrying out high pri23 ority activities and projects that improve commercial 

24 motor vehicle safety and compliance with commercial 

25 motor vehicle safety regulations, including activities 
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1 and projects that are national in scope, increase pub2 lic awareness and education, or demonstrate new 

3 technologies. The amounts designated under this 

4 paragraph shall be allocated by the Secretary to State 

5 agencies, local governments, and organizations rep6 resenting government agencies or officials that use 

7 and train qualified officers and employees in coordi8 nation with State motor vehicle safety agencies. At 

9 least 80 percent of the amounts designated under this 

10 paragraph shall be awarded to State agencies and 

11 local government agencies. 

12 ‘‘(3) SAFETY-PERFORMANCE INCENTIVE PRO13 GRAMS.—The Secretary may designate up to 10 per14 cent of the amounts available for allocation under 

15 paragraph (1) for safety performance incentive pro16 grams for States. The Secretary shall establish safety 

17 performance criteria to be used to distribute incentive 

18 program funds. Such criteria shall include, at a min19 imum, reduction in the number and rate of fatal acci20 dents involving commercial motor vehicles. Alloca21 tions under this paragraph do not require a matching 

22 contribution from a State. 

23 ‘‘(4) NEW ENTRANT AUDITS.—The Secretary 

24 shall designate up to $29,000,000 of the amounts 

25 available for allocation under paragraph (1) for au-
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1 dits of new entrant motor carriers conducted pursu2 ant to 31144(f). The Secretary may withhold such 

3 funds from a State or local government that is unable 

4 to use government employees to conduct new entrant 

5 motor carrier audits, and may instead utilize the 

6 funds to conduct audits in those jurisdictions.’’. 

7 (b) GRANTS TO STATES FOR BORDER ENFORCE8 MENT.—Section 31107 is amended to read as follows: 

9 ‘‘§ 31107. Border enforcement grants 

10 ‘‘(a) GENERAL AUTHORITY.—From the funds author11 ized by section 4222(c)(1) of the Motor Carrier Safety Reau12 thorization Act of 2004, the Secretary may make a grant 

13 in a fiscal year to a State that shares a border with another 

14 country for carrying out border commercial motor vehicle 

15 safety programs and related enforcement activities and 

16 projects. 

17 ‘‘(b) MAINTENANCE OF EXPENDITURES.—The Sec18 retary may make a grant to a State under this section only 

19 if the State agrees that the total expenditure of amounts 

20 of the State and political subdivisions of the State, exclusive 

21 of United States Government amounts, for carrying out bor22 der commercial motor vehicle safety programs and related 

23 enforcement activities and projects will be maintained at 

24 a level at least equal to the average level of that expenditure 
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1 by the State and political subdivisions of the State for the 

2 last 2 State or Federal fiscal years before October 1, 2003.’’. 

3 (c) GRANTS TO STATES FOR COMMERCIAL DRIVER’S

4 LICENSE IMPROVEMENTS.—Chapter 313 is amended by 

5 adding at the end the following: 

6 ‘‘§ 31318. Grants for commercial driver’s license pro7 gram improvements 

8 ‘‘(a) GENERAL AUTHORITY.—From the funds author9 ized by section 4222(c)(3) of the Motor Carrier Safety Reau10 thorization Act of 2004, the Secretary may make a grant 

11 to a State, except as otherwise provided in subsection (e), 

12 in a fiscal year to improve its implementation of the com13 mercial driver’s license program, providing the State is in 

14 substantial compliance with the requirements of section 

15 31311 and this section. The Secretary shall establish cri16 teria for the distribution of grants and notify the States 

17 annually of such criteria. 

18 ‘‘(b) CONDITIONS.—Except as otherwise provided in 

19 subsection (e), a State may use a grant under this section 

20 only for expenses directly related to its commercial driver’s 

21 license program, including, but not limited to, computer 

22 hardware and software, publications, testing, personnel, 

23 training, and quality control. The grant may not be used 

24 to rent, lease, or buy land or buildings. The Secretary shall 

25 give priority to grants that will be used to achieve compli-
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1 ance with the requirements of the Motor Carrier Safety Im2 provement Act of 1999. The Secretary may allocate the 

3 funds appropriated for such grants in a fiscal year among 

4 the eligible States whose applications for grants have been 

5 approved, under criteria established by the Secretary. 

6 ‘‘(c) MAINTENANCE OF EXPENDITURES.—Except as 

7 otherwise provided in subsection (e), the Secretary may 

8 make a grant to a State under this section only if the State 

9 agrees that the total expenditure of amounts of the State 

10 and political subdivisions of the State, exclusive of United 

11 States Government amounts, for the operation of the com12 mercial driver’s license program will be maintained at a 

13 level at least equal to the average level of that expenditure 

14 by the State and political subdivisions of the State for the 

15 last 2 fiscal years before October 1, 2003. 

16 ‘‘(d) GOVERNMENT SHARE.—Except as otherwise pro17 vided in subsection (e), the Secretary shall reimburse a 

18 State, from a grant made under this section, an amount 

19 that is not more than 80 percent of the costs incurred by 

20 the State in a fiscal year in implementing the commercial 

21 driver’s license improvements described in subsection (b). 

22 In determining those costs, the Secretary shall include in23 kind contributions by the State. 

24 ‘‘(e) HIGH-PRIORITY ACTIVITIES.— 
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1 ‘‘(1) The Secretary may make a grant to a State 

2 agency, local government, or organization rep3 resenting government agencies or officials for the full 

4 cost of research, development, demonstration projects, 

5 public education, or other special activities and 

6 projects relating to commercial driver licensing and 

7 motor vehicle safety that are of benefit to all jurisdic8 tions or designed to address national safety concerns 

9 and circumstances. 

10 ‘‘(2) The Secretary may designate up to 10 per11 cent of the amounts made available under section 

12 4222(c)(3) of the Motor Carrier Safety Reauthoriza13 tion Act of 2004 in a fiscal year for high-priority ac14 tivities under subsection (e)(1). 

15 ‘‘(f) EMERGING ISSUES.—The Secretary may des16 ignate up to 10 percent of the amounts made available 

17 under section 4222(c)(3) of the Motor Carrier Safety Reau18 thorization Act of 2004 in a fiscal year for allocation to 

19 a State agency, local government, or other person at the 

20 discretion of the Secretary to address emerging issues relat21 ing to commercial driver’s license improvements. 

22 ‘‘(g) APPORTIONMENT.—Except as otherwise provided 

23 in subsections (e) and (f), all amounts available in a fiscal 

24 year to carry out this section shall be apportioned to States 

25 according to a formula prescribed by the Secretary. 
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1 ‘‘(h) DEDUCTION FOR ADMINISTRATIVE EXPENSES.— 

2 On October 1 of each fiscal year or as soon after that date 

3 as practicable, the Secretary may deduct, from amounts 

4 made available under section 4222(c)(3) of the Motor Car5 rier Safety Reauthorization Act of 2004 for that fiscal year, 

6 up to 0.75 percent of those amounts for administrative ex7 penses incurred in carrying out this section in that fiscal 

8 year.’’. 

9 (d) NONCOMPLIANCE WITH CDL REQUIREMENTS.— 

10 Section 31314 is amended by striking subsections (a) and 

11 (b) and inserting the following: 

12 ‘‘(a) FIRST FISCAL YEAR.—The Secretary of Trans13 portation shall withhold up to 5 percent of the amount re14 quired to be apportioned to a State under section 104(b)(1), 

15 (3), and (4) of title 23 on the first day of the fiscal year 

16 after the first fiscal year beginning after September 30, 

17 1992, throughout which the State does not comply substan18 tially with a requirement of section 31311(a) of this title. 

19 ‘‘(b) SECOND FISCAL YEAR.—The Secretary shall 

20 withhold up to 10 percent of the amount required to be ap21 portioned to a State under section 104(b)(1), (3), and (4) 

22 of title 23 on the first day of each fiscal year after the second 

23 fiscal year beginning after September 30, 1992, throughout 

24 which the State does not comply substantially with a re25 quirement of section 31311(a) of this title.’’. 
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1 (e) CONFORMING AMENDMENTS.—(1) The chapter 

2 analysis for chapter 311 is amended— 

3 (A) by striking the item relating to Subchapter 

4 I, and inserting the following: 

‘‘SUBCHAPTER I—GENERAL AUTHORITY AND STATE GRANTS’’; 

5 and 

6 (B) by striking the item relating to section 

7 31107, and inserting the following: 

‘‘31107. Border enforcement grants.’’. 

8 (2) Subchapter I of chapter 311 is amended by striking 

9 the subchapter heading and inserting the following: 

‘‘SUBCHAPTER I—GENERAL AUTHORITY AND STATE GRANTS’’ 

10 (3) The chapter analysis for chapter 313 is amended 

11 by inserting the following after the item relating to section 

12 31317: 

‘‘31318. Grants for commercial driver’s license program improvements.’’. 

13 SEC. 4224. CDL WORKING GROUP. 

14 (a) IN GENERAL.—The Secretary of Transportation 

15 shall convene a working group to study and address current 

16 impediments and foreseeable challenges to the commercial 

17 driver’s license program’s effectiveness and measures needed 

18 to realize the full safety potential of the commercial driver’s 

19 license program. The working group shall address such 

20 issues as State enforcement practices, operational proce21 dures to detect and deter fraud, needed improvements for 

22 seamless information sharing between States, effective meth-
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1 ods for accurately sharing electronic data between States, 

2 updated technology, and timely notification from judicial 

3 bodies concerning traffic and criminal convictions of com4 mercial driver’s license holders. 

5 (b) MEMBERSHIP.—Members of the working group 

6 should include State motor vehicle administrators, organi7 zations representing government agencies or officials, mem8 bers of the Judicial Conference, representatives of the truck9 ing industry, representatives of labor organizations, safety 

10 advocates, and other significant stakeholders. 

11 (c) REPORT.—Within 2 years after the date of enact12 ment of this Act, the Secretary, on behalf of the working 

13 group, shall complete a report of the working group’s find14 ings and recommendations for legislative, regulatory, and 

15 enforcement changes to improve the commercial driver’s li16 cense program. The Secretary shall promptly transmit the 

17 report to the Senate Committee on Commerce, Science, and 

18 Transportation and the House of Representatives Com19 mittee on Transportation and Infrastructure. 

20 (d) FUNDING.—From the funds authorized by section 

21 4222(c)(3) of this title, $200,000 shall be made available 

22 for each of fiscal years 2004 and 2005 to carry out this 

23 section. 

24 SEC. 4225. CDL LEARNER’S PERMIT PROGRAM. 

25 (a) IN GENERAL.—Chapter 313 is amended— 
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1 (1) by striking ‘‘time.’’ in section 31302 and in2 serting ‘‘license, and may have only 1 learner’s per3 mit at any time.’’; 

4 (2) by inserting ‘‘and learners’ permits’’ after 

5 ‘‘licenses’’ the first place it appears in section 31308; 

6 (3) by striking ‘‘licenses.’’ in section 31308 and 

7 inserting ‘‘licenses and permits.’’; 

8 (4) by redesignating paragraphs (2) and (3) of 

9 section 31308 as paragraphs (3) and (4), respectively, 

10 and inserting after paragraph (1) the following: 

11 ‘‘(2) before a commercial driver’s license learn12 er’s permit can be issued to an individual, the indi13 vidual must pass a written test on the operation of 

14 a commercial motor vehicle that complies with the 

15 minimum standards prescribed by the Secretary 

16 under section 31305(a) of this title;’’; 

17 (5) by inserting ‘‘or learner’s permit’’ after ‘‘li18 cense’’ each place it appears in paragraphs (3) and 

19 (4), as redesignated, of section 31308; and 

20 (6) by inserting ‘‘or learner’s permit’’ after ‘‘li21 cense’’ each place it appears in section 31309(b). 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 31302 is amended by inserting 

24 ‘‘and learner’s permits’’ in the section caption. 
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1 (2) Sections 31308 and 31309 are each amended 

2 by inserting ‘‘and learner’s permit’’ after ‘‘li3 cense’’ in the section captions. 

4 (3) The chapter analysis for chapter 313 is 

5 amended by striking the item relating to section 

6 31302 and inserting the following: 

‘‘31302. Limitation on the number of driver’s licenses and learner’s permits.’’. 

7 (4) The chapter analysis for chapter 313 is 

8 amended by striking the items relating to sections 

9 31308 and 31309 and inserting the following: 

‘‘31308. Commercial driver’s license and learner’s permit. 

‘‘31309. Commercial driver’s license and learner’s permit information system.’’. 

10 SEC. 4226. HOBBS ACT. 

11 (a) Section 2342(3)(A) of title 28, United States Code, 

12 is amended to read as follows: 

13 ‘‘(A) the Secretary of Transportation issued 

14 pursuant to section 2, 9, 37, or 41 of the Ship15 ping Act, 1916 (46 U.S.C. App. 802, 803, 808, 

16 835, 839, and 841a) or pursuant to Part B or 

17 C of subtitle IV of title 49 or pursuant to sub18 chapter III of chapter 311, chapter 313, and 

19 chapter 315 of Part B of subtitle VI of title 49; 

20 and’’. 

21 (b) Section 351(a) is amended to read as follows: 

22 ‘‘(a) JUDICIAL REVIEW.—An action of the Secretary 

23 of Transportation in carrying out a duty or power trans-
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1 ferred under the Department of Transportation Act (Public 

2 Law 89–670; 80 Stat. 931), or an action of the Adminis3 trator of the Federal Railroad Administration, Federal 

4 Motor Carrier Safety Administration, or the Federal Avia5 tion Administration in carrying out a duty or power spe6 cifically assigned to the Administrator by that Act, may 

7 be reviewed judicially to the same extent and in the same 

8 way as if the action had been an action by the department, 

9 agency, or instrumentality of the United States Government 

10 carrying out the duty or power immediately before the 

11 transfer or assignment.’’. 

12 (c) Section 352 is amended to read as follows: 

13 ‘‘§ 352. Authority to carry out certain transferred du14 ties and powers 

15 ‘‘In carrying out a duty or power transferred under 

16 the Department of Transportation Act (Public Law 89–670; 

17 80 Stat. 931), the Secretary of Transportation and the Ad18 ministrators of the Federal Railroad Administration, the 

19 Federal Motor Carrier Safety Administration, and the Fed20 eral Aviation Administration have the same authority that 

21 was vested in the department, agency, or instrumentality 

22 of the United States Government carrying out the duty or 

23 power immediately before the transfer. An action of the Sec24 retary or Administrator in carrying out the duty or power 
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1 has the same effect as when carried out by the department, 

2 agency, or instrumentality.’’. 

3 SEC. 4227. PENALTY FOR DENIAL OF ACCESS TO RECORDS. 

4 Section 521(b)(2) is amended by adding at the end the 

5 following: 

6 ‘‘(E) COPYING OF RECORDS AND ACCESS TO EQUIP7 MENT, LANDS, AND BUILDINGS.—A motor carrier subject to 

8 chapter 51 of subtitle III, a motor carrier, broker, or freight 

9 forwarder subject to part B of subtitle IV, or the owner or 

10 operator of a commercial motor vehicle subject to part B 

11 of subtitle VI of this title who fails to allow the Secretary, 

12 or an employee designated by the Secretary, promptly upon 

13 demand to inspect and copy any record or inspect and ex14 amine equipment, lands, buildings and other property in 

15 accordance with sections 504(c), 5121(c), and 14122(b) of 

16 this title shall be liable to the United States for a civil pen17 alty not to exceed $500 for each offense, and each day the 

18 Secretary is denied the right to inspect and copy any record 

19 or inspect and examine equipment, lands, buildings and 

20 other property shall constitute a separate offense, except 

21 that the total of all civil penalties against any violator for 

22 all offenses related to a single violation shall not exceed 

23 $5,000. It shall be a defense to such penalty that the records 

24 did not exist at the time of the Secretary’s request or could 

25 not be timely produced without unreasonable expense or ef-
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1 fort. Nothing herein amends or supersedes any remedy 

2 available to the Secretary under sections 502(d), 507(c), or 

3 other provision of this title.’’. 

4 SEC. 4228. MEDICAL PROGRAM. 

5 (a) IN GENERAL.—Subchapter III of chapter 311 is 

6 amended by adding at the end the following: 

7 ‘‘§ 31149. Medical program 

8 ‘‘(a) MEDICAL REVIEW BOARD.— 

9 ‘‘(1) ESTABLISHMENT AND FUNCTION.—The Sec10 retary of Transportation shall establish a Medical Re11 view Board to serve as an advisory committee to pro12 vide the Federal Motor Carrier Safety Administration 

13 with medical advice and recommendations on driver 

14 qualification medical standards and guidelines, med15 ical examiner education, and medical research. 

16 ‘‘(2) COMPOSITION.—The Medical Review Board 

17 shall be appointed by the Secretary and shall consist 

18 of 5 members selected from medical institutions and 

19 private practice. The membership shall reflect exper20 tise in a variety of specialties relevant to the func21 tions of the Federal Motor Carrier Safety Administra22 tion. 

23 ‘‘(b) CHIEF MEDICAL EXAMINER.—The Secretary shall 

24 appoint a chief medical examiner for the Federal Motor 

25 Carrier Safety Administration. 
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1 ‘‘(c) MEDICAL STANDARDS AND REQUIREMENTS.—The 

2 Secretary, with the advice of the Medical Review Board and 

3 the chief medical examiner, shall— 

4 ‘‘(1) establish, review, and revise— 

5 ‘‘(A) medical standards for applicants for 

6 and holders of commercial driver’s licenses that 

7 will ensure that the physical condition of opera8 tors of commercial motor vehicles is adequate to 

9 enable them to operate the vehicles safely; 

10 ‘‘(B) requirements for periodic physical ex11 aminations of such operators performed by med12 ical examiners who have received training in 

13 physical and medical examination standards 

14 and are listed on a national registry maintained 

15 by the Department of Transportation; and 

16 ‘‘(C) requirements for notification of the 

17 chief medical examiner if such an applicant or 

18 holder— 

19 ‘‘(i) fails to meet the applicable stand20 ards; or 

21 ‘‘(ii) is found to have a physical or 

22 mental disability or impairment that would 

23 interfere with the individual’s ability to op24 erate a commercial motor vehicle safely; 
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1 ‘‘(2) require each holder of a commercial driver’s 

2 license or learner’s permit to have a current valid 

3 medical certificate; 

4 ‘‘(3) issue such certificates to such holders and 

5 applicants who are found, upon examination, to be 

6 physically qualified to operate a commercial motor 

7 vehicle and to meet applicable medical standards; and 

8 ‘‘(4) develop, as appropriate, specific courses and 

9 materials for medical examiners listed in the national 

10 registry established under this section, and require 

11 those medical examiners to complete specific training, 

12 including refresher courses, to be listed in the registry. 

13 ‘‘(d) NATIONAL REGISTRY OF MEDICAL EXAMINERS.— 

14 The Secretary, through the Federal Motor Carrier Safety 

15 Administration— 

16 ‘‘(1) shall establish and maintain a current na17 tional registry of medical examiners who are qualified 

18 to perform examination, testing, inspection, and 

19 issuance of a medical certificate; 

20 ‘‘(2) shall delegate to those examiners the author21 ity to issue such certificates if the Medical Review 

22 Board develops a system to identify the medical ex23 amination forms uniquely and track them; and 

24 ‘‘(3) shall remove from the registry the name of 

25 any medical examiner that fails to meet the qualifica-
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1 tions established by the Secretary for being listed in 

2 the registry. 

3 ‘‘(e) CONSULTATION AND COOPERATION WITH FAA.— 

4 ‘‘(1) IN GENERAL.—The Administrator of the 

5 Federal Motor Carrier Safety Administration shall 

6 consult the Administrator of the Federal Aviation Ad7 ministration with respect to examinations, the 

8 issuance of certificates, standards, and procedures 

9 under this section in order to take advantage of such 

10 aspects of the Federal Aviation Administration’s air11 man certificate program under chapter 447 of this 

12 title as the Administrator deems appropriate for car13 rying out this section. 

14 ‘‘(2) USE OF FAA-QUALIFIED EXAMINERS.—The 

15 Administrator of the Federal Motor Carrier Safety 

16 Administration and the Administrator of the Federal 

17 Aviation Administration are authorized and encour18 aged to execute a memorandum of understanding 

19 under which individuals holding or applying for a 

20 commercial driver’s license or learner’s permit may 

21 be examined, for purposes of this section, by medical 

22 examiners who are qualified to administer medical 

23 examinations for airman certificates under chapter 

24 447 of this title and the regulations thereunder— 
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1 ‘‘(A) until the national registry required by 

2 subsection (d) is fully established; and 

3 ‘‘(B) to the extent that the Administrators 

4 determine appropriate, after that registry is es5 tablished. 

6 ‘‘(f) REGULATIONS.—The Secretary is authorized to 

7 promulgate such regulations as may be necessary to carry 

8 out this section.’’. 

9 (b) MEDICAL EXAMINERS.—Section 31136(a)(3) is 

10 amended to read as follows: 

11 ‘‘(3) the physical condition of operators of com12 mercial motor vehicles is adequate to enable them to 

13 operate the vehicles safely, and the periodic physical 

14 examinations required of such operators are per15 formed by medical examiners who have received 

16 training in physical and medical examination stand17 ards and are listed on a national registry maintained 

18 by the Department of Transportation; and’’. 

19 (c) DEFINITION OF MEDICAL EXAMINER.—Section 

20 31132 is amended— 

21 (1) by redesignating paragraphs (6) through (10) 

22 as paragraphs (7) through (11), respectively; and 

23 (2) by inserting after paragraph (5) the fol24 lowing: 
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1 ‘‘(6) ‘medical examiner’ means an individual li2 censed, certified, or registered in accordance with reg3 ulations issued by the Federal Motor Carrier Safety 

4 Administration as a medical examiner.’’. 

5 (d) CONFORMING AMENDMENT.—The chapter analysis 

6 for chapter 311 is amended by inserting after the item relat7 ing to section 31148 the following: 

‘‘31149. Medical program.’’. 

8 (e) EFFECTIVE DATE.—The amendment made by sub9 section (a) shall take effect 1 year after the date of enact10 ment of this Act. 

11 SEC. 4229. OPERATION OF COMMERCIAL MOTOR VEHICLES 

12 BY INDIVIDUALS WHO USE INSULIN TO TREAT 

13 DIABETES MELLITUS. 

14 (a) REVISION OF FINAL RULE.—Not later than 90 

15 days after the date of the enactment of this Act, the Sec16 retary shall revise the final rule to allow individuals who 

17 use insulin to treat their diabetes to operate commercial 

18 motor vehicles in interstate commerce. The revised final rule 

19 shall provide for the individual assessment of applicants 

20 who use insulin to treat their diabetes and who are, except 

21 for their use of insulin, otherwise qualified under the Fed22 eral Motor Carrier Safety Regulations. The revised final 

23 rule shall be consistent with the criteria described in section 

24 4018 of the Transportation Equity Act for the 21st Century 

25 (49 U.S.C. 31305 note) and shall conclude the rulemaking 
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1 process in the Federal Motor Carrier Safety Administration 

2 docket relating to qualifications of drivers with diabetes. 

3 (b) NO HISTORY OF DRIVING WHILE USING INSULIN

4 REQUIRED FOR QUALIFICATION.—The Secretary may not 

5 require individuals to have experience operating commer6 cial motor vehicles while using insulin in order to qualify 

7 to operate a commercial motor vehicle in interstate com8 merce. 

9 (c) HISTORY OF DIABETES CONTROL.—The Secretary 

10 may require an individual to have used insulin for a min11 imum period of time and demonstrated stable control of di12 abetes in order to qualify to operate a commercial motor 

13 vehicle in interstate commerce. Any such requirement, in14 cluding any requirement with respect to the duration of 

15 such insulin use, shall be consistent with the findings of 

16 the expert medical panel reported in July 2000 in ‘‘A Re17 port to Congress on the Feasibility of a Program to Qualify 

18 Individuals with Insulin-Treated Diabetes Mellitus to Op19 erate Commercial Motor Vehicles in Interstate Commerce 

20 as Directed by the Transportation Equity Act for the 21st 

21 Century’’. 

22 (d) APPLICABLE STANDARD.—The Secretary shall en23 sure that individuals who use insulin to treat their diabetes 

24 are not held to a higher standard than other qualified com25 mercial drivers, except to the extent that limited operating, 
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1 monitoring, or medical requirements are deemed medically 

2 necessary by experts in the field of diabetes medicine. 

3 SEC. 4230. FINANCIAL RESPONSIBILITY FOR PRIVATE 

4 MOTOR CARRIERS. 

5 (a) TRANSPORTATION OF PASSENGERS.— 

6 (1) Section 31138(a) is amended to read as fol7 lows: 

8 ‘‘(a) GENERAL REQUIREMENT.—The Secretary of 

9 Transportation shall prescribe regulations to require min10 imum levels of financial responsibility sufficient to satisfy 

11 liability amounts established by the Secretary covering pub12 lic liability and property damage for the transportation of 

13 passengers by motor vehicle in the United States between 

14 a place in a State and— 

15 ‘‘(1) a place in another State; 

16 ‘‘(2) another place in the same State through a 

17 place outside of that State; or 

18 ‘‘(3) a place outside the United States.’’. 

19 (2) Section 31138(c) is amended by adding at 

20 the end the following: 

21 ‘‘(4) The Secretary may require a person, other 

22 than a motor carrier as defined in section 13102(12) 

23 of this title, transporting passengers by motor vehicle 

24 to file with the Secretary the evidence of financial re25 sponsibility specified in subsection (c)(1) of this sec-
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1 tion in an amount not less than that required by this 

2 section, and the laws of the State or States in which 

3 the person is operating, to the extent applicable. The 

4 extent of the financial responsibility must be suffi5 cient to pay, not more than the amount of the finan6 cial responsibility, for each final judgment against 

7 the person for bodily injury to, or death of, an indi8 vidual resulting from the negligent operation, mainte9 nance, or use of motor vehicles, or for loss or damage 

10 to property, or both.’’. 

11 (b) TRANSPORTATION OF PROPERTY.—Section 31139 

12 is amended— 

13 (1) by striking so much of subsection (b) as pre14 cedes paragraph (2) and inserting the following: 

15 ‘‘(b) GENERAL REQUIREMENTS AND MINIMUM

16 AMOUNT.— 

17 ‘‘(1) The Secretary of Transportation shall pre18 scribe regulations to require minimum levels of finan19 cial responsibility sufficient to satisfy liability 

20 amounts established by the Secretary covering public 

21 liability, property damage, and environmental res22 toration for the transportation of property by motor 

23 vehicle in the United States between a place in a 

24 State and— 

25 ‘‘(A) a place in another State; 
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1 ‘‘(B) another place in the same State 

2 through a place outside of that State; or 

3 ‘‘(C) a place outside the United States.’’; 

4 (2) by aligning the left margin of paragraph (2) 

5 of subsection (b) with the left margin of paragraph 

6 (1) of that subsection (as amended by paragraph (1) 

7 of this subsection); and 

8 (3) by redesignating subsection (c) through (g) as 

9 subsections (d) through (h), respectively, and inserting 

10 after subsection (b) the following: 

11 ‘‘(c) FILING OF EVIDENCE OF FINANCIAL RESPONSI12 BILITY.—The Secretary may require a motor private car13 rier, as defined in section 13102 of this title, to file with 

14 the Secretary the evidence of financial responsibility speci15 fied in subsection (b) of this section in an amount not less 

16 than that required by this section, and the laws of the State 

17 or States in which the motor private carrier is operating, 

18 to the extent applicable. The amount of the financial re19 sponsibility must be sufficient to pay, not more than the 

20 amount of the financial responsibility, for each final judg21 ment against the motor private carrier for bodily injury 

22 to, or death of, an individual resulting from negligent oper23 ation, maintenance, or use of motor vehicles, or for loss or 

24 damage to property, or both.’’. 
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1 SEC. 4231. INCREASED PENALTIES FOR OUT-OF-SERVICE 

2 VIOLATIONS AND FALSE RECORDS. 

3 (a) Section 521(b)(2)(B) is amended to read as follows: 

4 ‘‘(B) RECORDKEEPING AND REPORTING VIOLA5 TIONS.—A person required to make a report to the 

6 Secretary, answer a question, or make, prepare, or 

7 preserve a record under section 504 of this title or 

8 under any regulation issued by the Secretary pursu9 ant to subchapter III of chapter 311 (except sections 

10 31138 and 31139) or section 31502 of this title about 

11 transportation by motor carrier, motor carrier of mi12 grant workers, or motor private carrier, or an officer, 

13 agent, or employee of that person— 

14 ‘‘(i) who does not make that report, does not 

15 specifically, completely, and truthfully answer 

16 that question in 30 days from the date the Sec17 retary requires the question to be answered, or 

18 does not make, prepare, or preserve that record 

19 in the form and manner prescribed by the Sec20 retary, shall be liable to the United States for a 

21 civil penalty in an amount not to exceed $1,000 

22 for each offense, and each day of the violation 

23 shall constitute a separate offense, except that the 

24 total of all civil penalties assessed against any 

25 violator for all offenses related to any single vio26 lation shall not exceed $10,000; or 
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1 ‘‘(ii) who knowingly falsifies, destroys, mu2 tilates, or changes a required report or record, 

3 knowingly files a false report with the Secretary, 

4 knowingly makes or causes or permits to be 

5 made a false or incomplete entry in that record 

6 about an operation or business fact or trans7 action, or knowingly makes, prepares, or pre8 serves a record in violation of a regulation or 

9 order of the Secretary, shall be liable to the 

10 United States for a civil penalty in an amount 

11 not to exceed $10,000 for each violation, if any 

12 such action can be shown to have misrepresented 

13 a fact that constitutes a violation other than a 

14 reporting or recordkeeping violation.’’. 

15 (b) Section 31310(i)(2) is amended to read as follows: 

16 ‘‘(2) The Secretary shall prescribe regulations es17 tablishing sanctions and penalties related to viola18 tions of out-of-service orders by individuals operating 

19 commercial motor vehicles. The regulations shall re20 quire at least that— 

21 ‘‘(A) an operator of a commercial motor ve22 hicle found to have committed a first violation of 

23 an out-of-service order shall be disqualified from 

24 operating such a vehicle for at least 180 days 

25 and liable for a civil penalty of at least $2,500; 
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1 ‘‘(B) an operator of a commercial motor ve2 hicle found to have committed a second violation 

3 of an out-of-service order shall be disqualified 

4 from operating such a vehicle for at least 2 years 

5 and not more than 5 years and liable for a civil 

6 penalty of at least $5,000; 

7 ‘‘(C) an employer that knowingly allows or 

8 requires an employee to operate a commercial 

9 motor vehicle in violation of an out-of-service 

10 order shall be liable for a civil penalty of not 

11 more than $25,000; and 

12 ‘‘(D) an employer that knowingly and will13 fully allows or requires an employee to operate 

14 a commercial motor vehicle in violation of an 

15 out-of-service order shall, upon conviction, be 

16 subject for each offense to imprisonment for a 

17 term not to exceed 1 year or a fine under title 

18 18, United States Code, or both.’’. 

19 SEC. 4232. ELIMINATION OF COMMODITY AND SERVICE EX20 EMPTIONS. 

21 (a) Section 13506(a) is amended— 

22 (1) by striking paragraphs (6), (11), (12), (13), 

23 and (15); 
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1 (2) by redesignating paragraphs (7), (8), (9), 

2 (10), and (14) as paragraphs (6), (7), (8), (9) and 

3 (10), respectively; 

4 (3) by inserting ‘‘or’’ after the semicolon in 

5 paragraph (9), as redesignated; and 

6 (4) striking ‘‘13904(d); or’’ in paragraph (1), as 

7 redesignated, and inserting ‘‘14904(d).’’. 

8 (b) Section 13507 is amended by striking ‘‘(6), (8), 

9 (11), (12), or (13)’’ and inserting ‘‘(6)’’. 

10 SEC. 4233. INTRASTATE OPERATIONS OF INTERSTATE 

11 MOTOR CARRIERS. 

12 (a) Subsection (a) of section 31144 is amended to read 

13 as follows: 

14 ‘‘(a) IN GENERAL.—The Secretary shall— 

15 ‘‘(1) determine whether an owner or operator is 

16 fit to operate safely commercial motor vehicles, uti17 lizing among other things the accident record of an 

18 owner or operator operating in interstate commerce 

19 and the accident record and safety inspection record 

20 of such owner or operator in operations that affect 

21 interstate commerce; 

22 ‘‘(2) periodically update such safety fitness deter23 minations; 

24 ‘‘(3) make such final safety fitness determina25 tions readily available to the public; and 
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1 ‘‘(4) prescribe by regulation penalties for viola2 tions of this section consistent with section 521.’’. 

3 (b) Subsection (c) of section 31144 is amended by add4 ing at the end the following: 

5 ‘‘(5) TRANSPORTATION AFFECTING INTERSTATE

6 COMMERCE.—Owners or operators of commercial 

7 motor vehicles prohibited from operating in interstate 

8 commerce pursuant to paragraphs (1) through (3) of 

9 this section may not operate any commercial motor 

10 vehicle that affects interstate commerce until the Sec11 retary determines that such owner or operator is fit.’’. 

12 (c) Section 31144 is amended by redesignating sub13 sections (d), (e), and the second subsection (c) as subsections 

14 (e), (f), and (g), respectively, and inserting after subsection 

15 (c) the following: 

16 ‘‘(d) DETERMINATION OF UNFITNESS BY A STATE.— 

17 If a State that receives Motor Carrier Safety Assistance 

18 Program funds pursuant to section 31102 of this title deter19 mines, by applying the standards prescribed by the Sec20 retary under subsection (b) of this section, that an owner 

21 or operator of commercial motor vehicles that has its prin22 cipal place of business in that State and operates in intra23 state commerce is unfit under such standards and prohibits 

24 the owner or operator from operating such vehicles in the 

25 State, the Secretary shall prohibit the owner or operator 
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1 from operating such vehicles in interstate commerce until 

2 the State determines that the owner or operator is fit.’’. 

3 SEC. 4234. AUTHORITY TO STOP COMMERCIAL MOTOR VEHI4 CLES. 

5 (a) IN GENERAL.—Chapter 2 of title 18, United States 

6 Code, is amended by adding at the end the following: 

7 ‘‘§ 38. Commercial motor vehicles required to stop for 

8 inspections 

9 ‘‘(a) A driver of a commercial motor vehicle, as defined 

10 in section 31132(1) of title 49, shall stop and submit to 

11 inspection of the vehicle, driver, cargo, and required records 

12 when directed to do so by an authorized employee of the 

13 Federal Motor Carrier Safety Administration, Department 

14 of Transportation, at or in the vicinity of an inspection 

15 site. The driver shall not leave the inspection site until au16 thorized to do so by an authorized employee. 

17 ‘‘(b) A driver of a commercial motor vehicle, as defined 

18 in subsection (a), who knowingly fails to stop for inspection 

19 when directed to do so by an authorized employee of the 

20 Federal Motor Carrier Safety Administration at or in the 

21 vicinity of an inspection site, or leaves the inspection site 

22 without authorization, shall be fined under this title or im23 prisoned not more than 1 year, or both.’’. 
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1 (b) AUTHORITY OF FMCSA.—Chapter 203 of title 18, 

2 United States Code, is amended by adding at the end the 

3 following: 

4 ‘‘§ 3064. Powers of Federal Motor Carrier Safety Ad5 ministration 

6 ‘‘Authorized employees of the Federal Motor Carrier 

7 Safety Administration may direct a driver of a commercial 

8 motor vehicle, as defined in 49 U.S.C. 31132(1), to stop 

9 for inspection of the vehicle, driver, cargo, and required 

10 records at or in the vicinity of an inspection site.’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) The chapter analysis for chapter 2 of title 18, 

13 United States Code, is amended by inserting after the 

14 item relating to section 37 the following: 

‘‘38. Commercial motor vehicles required to stop for inspections.’’. 

15 (2) The chapter analysis for chapter 203 of title 

16 18, United States Code, is amended by inserting after 

17 the item relating to section 3063 the following: 

‘‘3064. Powers of Federal Motor Carrier Safety Administration.’’. 

18 SEC. 4235. REVOCATION OF OPERATING AUTHORITY. 

19 Section 13905(e) is amended— 

20 (1) by striking paragraph (1) and inserting the 

21 following: 

22 ‘‘(1) PROTECTION OF SAFETY.—Notwithstanding 

23 subchapter II of chapter 5 of title 5, the Secretary— 
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1 ‘‘(A) may suspend the registration of a 

2 motor carrier, a freight forwarder, or a broker 

3 for failure to comply with requirements of the 

4 Secretary pursuant to section 13904(c) or 13906 

5 of this title, or an order or regulation of the Sec6 retary prescribed under those sections; and 

7 ‘‘(B) shall revoke the registration of a motor 

8 carrier that has been prohibited from operating 

9 in interstate commerce for failure to comply with 

10 the safety fitness requirements of section 31144 of 

11 this title.’’; 

12 (2) by striking ‘‘may suspend a registration’’in 

13 paragraph (2) and inserting ‘‘shall revoke the reg14 istration’’; and 

15 (3) by striking paragraph (3) and inserting the 

16 following: 

17 ‘‘(3) NOTICE; PERIOD OF SUSPENSION.—The Sec18 retary may suspend or revoke under this subsection 

19 the registration only after giving notice of the suspen20 sion or revocation to the registrant. A suspension re21 mains in effect until the registrant complies with the 

22 applicable sections or, in the case of a suspension 

23 under paragraph (2), until the Secretary revokes the 

24 suspension.’’. 
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1 SEC. 4236. PATTERN OF SAFETY VIOLATIONS BY MOTOR 

2 CARRIER MANAGEMENT. 

3 (a) IN GENERAL.—Section 31135 is amended— 

4 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

5 ‘‘Each’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(b) PATTERN OF NON-COMPLIANCE.—If an officer of 

8 a motor carrier engages in a pattern or practice of avoiding 

9 compliance, or masking or otherwise concealing non-com10 pliance, with regulations on commercial motor vehicle safe11 ty prescribed under this subchapter, the Secretary may sus12 pend, amend, or revoke any part of the motor carrier’s reg13 istration under section 13905 of this title. 

14 ‘‘(c) LIST OF PROPOSED OFFICERS.—Each person 

15 seeking registration as a motor carrier under section 13902 

16 of this title shall submit a list of the proposed officers of 

17 the motor carrier. If the Secretary determines that any of 

18 the proposed officers has previously engaged in a pattern 

19 or practice of avoiding compliance, or masking or otherwise 

20 concealing non-compliance, with regulations on commercial 

21 motor vehicle safety prescribed under this chapter, the Sec22 retary may deny the person’s application for registration 

23 as a motor carrier under section 13902(a)(3). 

24 ‘‘(d) REGULATIONS.—The Secretary shall by regula25 tion establish standards to implement subsections (b) and 

26 (c). 
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1 ‘‘(e) DEFINITIONS.—In this section: 

2 ‘‘(1) MOTOR CARRIER.—The term motor carrier 

3 has the meaning given the term in section 13102(12) 

4 of this title; and 

5 ‘‘(2) OFFICER.—The term officer means an 

6 owner, chief executive officer, chief operating officer, 

7 chief financial officer, safety director, vehicle mainte8 nance supervisor and driver supervisor of a motor 

9 carrier, regardless of the title attached to those func10 tions.’’. 

11 (b) REGISTRATION OF CARRIERS.—Section 

12 13902(a)(1)(B) is amended to read as follows: 

13 ‘‘(B) any safety regulations imposed by the Sec14 retary, the duties of employers and employees estab15 lished by the Secretary under section 31135, and the 

16 safety fitness requirements established by the Sec17 retary under section 31144; and’’. 

18 SEC. 4237. MOTOR CARRIER RESEARCH AND TECHNOLOGY 

19 PROGRAM. 

20 (a) IN GENERAL.—Section 31108 is amended to read 

21 as follows: 

22 ‘‘§ 31108. Motor carrier research and technology pro23 gram 

24 ‘‘(a) RESEARCH, TECHNOLOGY, AND TECHNOLOGY

25 TRANSFER ACTIVITIES.— 
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1 ‘‘(1) The Secretary of Transportation shall estab2 lish and carry out a motor carrier and motor coach 

3 research and technology program. The Secretary may 

4 carry out research, development, technology, and tech5 nology transfer activities with respect to— 

6 ‘‘(A) the causes of accidents, injuries and 

7 fatalities involving commercial motor vehicles; 

8 and 

9 ‘‘(B) means of reducing the number and se10 verity of accidents, injuries and fatalities involv11 ing commercial motor vehicles. 

12 ‘‘(2) The Secretary may test, develop, or assist in 

13 testing and developing any material, invention, pat14 ented article, or process related to the research and 

15 technology program. 

16 ‘‘(3) The Secretary may use the funds appro17 priated to carry out this section for training or edu18 cation of commercial motor vehicle safety personnel, 

19 including, but not limited to, training in accident re20 construction and detection of controlled substances or 

21 other contraband, and stolen cargo or vehicles. 

22 ‘‘(4) The Secretary may carry out this section— 

23 ‘‘(A) independently; 
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1 ‘‘(B) in cooperation with other Federal de2 partments, agencies, and instrumentalities and 

3 Federal laboratories; or 

4 ‘‘(C) by making grants to, or entering into 

5 contracts, cooperative agreements, and other 

6 transactions with, any Federal laboratory, State 

7 agency, authority, association, institution, for8 profit or non-profit corporation, organization, 

9 foreign country, or person. 

10 ‘‘(5) The Secretary shall use funds made avail11 able to carry out this section to develop, administer, 

12 communicate, and promote the use of products of re13 search, technology, and technology transfer programs 

14 under this section. 

15 ‘‘(b) COLLABORATIVE RESEARCH AND DEVELOP16 MENT.— 

17 ‘‘(1) To advance innovative solutions to problems 

18 involving commercial motor vehicle and motor carrier 

19 safety, security, and efficiency, and to stimulate the 

20 deployment of emerging technology, the Secretary 

21 may carry out, on a cost-shared basis, collaborative 

22 research and development with— 

23 ‘‘(A) non-Federal entities, including State 

24 and local governments, foreign governments, col25 leges and universities, corporations, institutions, 
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1 partnerships, and sole proprietorships that are 

2 incorporated or established under the laws of any 

3 State; and 

4 ‘‘(B) Federal laboratories. 

5 ‘‘(2) In carrying out this subsection, the Sec6 retary may enter into cooperative research and devel7 opment agreements (as defined in section 12 of the 

8 Stevenson-Wydler Technology Innovation Act of 1980 

9 (15 U.S.C. 3710a)). 

10 ‘‘(3)(A) The Federal share of the cost of activities 

11 carried out under a cooperative research and develop12 ment agreement entered into under this subsection 

13 shall not exceed 50 percent, except that if there is sub14 stantial public interest or benefit, the Secretary may 

15 approve a greater Federal share. 

16 ‘‘(B) All costs directly incurred by the non-Fed17 eral partners, including personnel, travel, and hard18 ware or software development costs, shall be credited 

19 toward the non-Federal share of the cost of the activi20 ties described in subparagraph (A). 

21 ‘‘(4) The research, development, or use of a tech22 nology under a cooperative research and development 

23 agreement entered into under this subsection, includ24 ing the terms under which the technology may be li25 censed and the resulting royalties may be distributed, 
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1 shall be subject to the Stevenson-Wydler Technology 

2 Innovation Act of 1980 (15 U.S.C. 3701 et seq.). 

3 ‘‘(5) Section 5 of title 41, United States Code, 

4 shall not apply to a contract or agreement entered 

5 into under this section. 

6 ‘‘(c) AVAILABILITY OF AMOUNTS.—The amounts made 

7 available under section 4222(a) of the Motor Carrier Safety 

8 Reauthorization Act of 2004 to carry out this section shall 

9 remain available until expended. 

10 ‘‘(d) CONTRACT AUTHORITY.—Approval by the Sec11 retary of a grant with funds made available under section 

12 4222(a) of the Motor Carrier Safety Reauthorization Act 

13 of 2004 to carry out this section imposes upon the United 

14 States Government a contractual obligation for payment of 

15 the Government’s share of costs incurred in carrying out 

16 the objectives of the grant.’’. 

17 (b) CONFORMING AMENDMENT.—The chapter analysis 

18 for chapter 311 is amended by striking the item relating 

19 to section 31108, and inserting the following: 

‘‘31108. Motor carrier research and technology program.’’. 

20 SEC. 4238. REVIEW OF COMMERCIAL ZONE EXEMPTION PRO21 VISION. 

22 (a) IN GENERAL.—Not later than 1 year after the date 

23 of enactment of this Act, the Secretary of Transportation 

24 shall complete a review of part 372 of title 49, Code of Fed25 eral Regulations, as it pertains to commercial zone exemp-
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1 tions (excluding border commercial zones) from Department 

2 of Transportation and Surface Transportation Board regu3 lations governing interstate commerce. The Secretary shall 

4 determine whether such exemptions should continue to 

5 apply as written, should undergo revision, or should be re6 voked. The Secretary shall submit to the Senate Committee 

7 on Commerce, Science, and Transportation and the House 

8 of Representatives Committee on Transportation and Infra9 structure a report of the review not later than 14 months 

10 after such date of enactment. 

11 (b) NOTICE.—The Secretary shall publish notice of the 

12 review required by subsection (a) and provide and oppor13 tunity for the public to submit comments on the effect of 

14 continuing, revising, or revoking the commercial zone ex15 emptions in part 372 of title 49, Code of Federal Regula16 tions. 

17 SEC. 4239. INTERNATIONAL COOPERATION. 

18 (a) IN GENERAL.—Chapter 311 is amended by insert19 ing at the end the following: 

20 ‘‘Subchapter IV—Miscellaneous 

21 ‘‘§ 31161. International cooperation 

22 ‘‘The Secretary is authorized to use funds appro23 priated under section 31104(i) of this title to participate 

24 and cooperate in international activities to enhance motor 

25 carrier, commercial motor vehicle, driver, and highway 
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1 safety by such means as exchanging information, con2 ducting research, and examining needs, best practices, and 

3 new technology.’’. 

4 (b) CLERICAL AMENDMENT.—The chapter analysis for 

5 chapter 311 is amended by adding at the end the following: 

‘‘SUBCHAPTER IV—MISCELLANEOUS 

‘‘31161. International cooperation.’’. 

6 SEC. 4240. PERFORMANCE AND REGISTRATION INFORMA7 TION SYSTEM MANAGEMENT. 

8 (a) IN GENERAL.—Section 31106(b) is amended— 

9 (1) by striking paragraphs (2) and (3) and in10 serting the following: 

11 ‘‘(2) DESIGN.—The program shall link Federal 

12 motor carrier safety information systems with State 

13 commercial vehicle registration and licensing systems 

14 and shall be designed to enable a State to— 

15 ‘‘(A) determine the safety fitness of a motor 

16 carrier or registrant when licensing or reg17 istering the registrant or motor carrier or while 

18 the license or registration is in effect; and 

19 ‘‘(B) deny, suspend, or revoke the commer20 cial motor vehicle registrations of a motor car21 rier or registrant that has been issued an oper22 ations out-of-service order by the Secretary. 
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1 ‘‘(3) CONDITIONS FOR PARTICIPATION.—The Sec2 retary shall require States, as a condition of partici3 pation in the program, to— 

4 ‘‘(A) comply with the uniform policies, pro5 cedures, and technical and operational standards 

6 prescribed by the Secretary under subsection 

7 (a)(4); 

8 ‘‘(B) possess the authority to impose sanc9 tions relating to commercial motor vehicle reg10 istration on the basis of a Federal safety fitness 

11 determination; and 

12 ‘‘(C) cancel the motor vehicle registration 

13 and seize the registration plates of an employer 

14 found liable under section 31310(i)(2)(C) of this 

15 title for knowingly allowing or requiring an em16 ployee to operate a commercial motor vehicle in 

17 violation of an out-of-service order.’’; and 

18 (2) by striking paragraph (4). 

19 (b) PERFORMANCE AND REGISTRATION INFORMATION

20 SYSTEM MANAGEMENT GRANTS.— 

21 (1) Subchapter I of chapter 311, as amended by 

22 this title, is further amended by adding at the end the 

23 following: 
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1 ‘‘§ 31109. Performance and Registration Information 

2 System Management 

3 ‘‘(a) IN GENERAL.—From the funds authorized by sec4 tion 4222(c)(2) of the Motor Carrier Safety Reauthorization 

5 Act of 2004, the Secretary may make a grant in a fiscal 

6 year to a State to implement the performance and registra7 tion information system management requirements of sec8 tion 31106(b). 

9 ‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts made 

10 available to a State under section 4222(c)(2) of the Motor 

11 Carrier Safety Reauthorization Act of 2004 to carry out 

12 this section shall remain available until expended. 

13 ‘‘(c) SECRETARY’S APPROVAL.—Approval by the Sec14 retary of a grant to a State under section 4222(c)(2) of 

15 the Motor Carrier Safety Reauthorization Act of 2004 to 

16 carry out this section is a contractual obligation of the Gov17 ernment for payment of the amount of the grant.’’. 

18 (2) CONFORMING AMENDMENT.—The chapter 

19 analysis for chapter 311 is amended by inserting 

20 after the item relating to section 31108 the following: 

‘‘31109. Performance and Registration Information System Management.’’. 

21 SEC. 4241. COMMERCIAL VEHICLE INFORMATION SYSTEMS 

22 AND NETWORKS DEPLOYMENT. 

23 (a) IN GENERAL.—The Secretary shall carry out a 

24 commercial vehicle information systems and networks pro25 gram to— 
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1 (1) improve the safety and productivity of com2 mercial vehicles; and 

3 (2) reduce costs associated with commercial vehi4 cle operations and Federal and State commercial ve5 hicle regulatory requirements. 

6 (b) PURPOSE.—The program shall advance the techno7 logical capability and promote the deployment of intelligent 

8 transportation system applications for commercial vehicle 

9 operations, including commercial vehicle, commercial driv10 er, and carrier-specific information systems and networks. 

11 (c) CORE DEPLOYMENT GRANTS.— 

12 (1) IN GENERAL.—The Secretary shall make 

13 grants to eligible States for the core deployment of 

14 commercial vehicle information systems and networks. 

15 (2) ELIGIBILITY.—To be eligible for a core de16 ployment grant under this section, a State— 

17 (A) shall have a commercial vehicle infor18 mation systems and networks program plan and 

19 a top level system design approved by the Sec20 retary; 

21 (B) shall certify to the Secretary that its 

22 commercial vehicle information systems and net23 works deployment activities, including hardware 

24 procurement, software and system development, 

25 and infrastructure modifications, are consistent 
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1 with the national intelligent transportation sys2 tems and commercial vehicle information sys3 tems and networks architectures and available 

4 standards, and promote interoperability and effi5 ciency to the extent practicable; and 

6 (C) shall agree to execute interoperability 

7 tests developed by the Federal Motor Carrier 

8 Safety Administration to verify that its systems 

9 conform with the national intelligent transpor10 tation systems architecture, applicable stand11 ards, and protocols for commercial vehicle infor12 mation systems and networks. 

13 (3) AMOUNT OF GRANTS.—The maximum aggre14 gate amount a State may receive under this section 

15 for the core deployment of commercial vehicle infor16 mation systems and networks may not exceed 

17 $2,500,000. 

18 (4) USE OF FUNDS.—Funds from a grant under 

19 this subsection may only be used for the core deploy20 ment of commercial vehicle information systems and 

21 networks. Eligible States that have either completed 

22 the core deployment of commercial vehicle informa23 tion systems and networks or completed such deploy24 ment before core deployment grant funds are expended 

25 may use the remaining core deployment grant funds 
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1 for the expanded deployment of commercial vehicle in2 formation systems and networks in their State. 

3 (d) EXPANDED DEPLOYMENT GRANTS.— 

4 (1) IN GENERAL.—For each fiscal year, from the 

5 funds remaining after the Secretary has made core 

6 deployment grants under subsection (c) of this section, 

7 the Secretary may make grants to each eligible State, 

8 upon request, for the expanded deployment of com9 mercial vehicle information systems and networks. 

10 (2) ELIGIBILITY.—Each State that has com11 pleted the core deployment of commercial vehicle in12 formation systems and networks is eligible for an ex13 panded deployment grant. 

14 (3) AMOUNT OF GRANTS.—Each fiscal year, the 

15 Secretary may distribute funds available for ex16 panded deployment grants equally among the eligible 

17 States, but not to exceed $1,000,000 per State. 

18 (4) USE OF FUNDS.—A State may use funds 

19 from a grant under this subsection only for the ex20 panded deployment of commercial vehicle information 

21 systems and networks. 

22 (e) FEDERAL SHARE.—The Federal share of the cost 

23 of a project payable from funds made available to carry 

24 out this section shall not exceed 50 percent. The total Fed-
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1 eral share of the cost of a project payable from all eligible 

2 sources shall not exceed 80 percent. 

3 (f) APPLICABILITY OF TITLE 23, UNITED STATES

4 CODE.—Funds authorized to be appropriated under section 

5 4222(c)(4) shall be available for obligation in the same 

6 manner and to the same extent as if such funds were appor7 tioned under chapter 1 of title 23, United States Code, ex8 cept that such funds shall remain available until expended. 

9 (g) DEFINITIONS.—In this section: 

10 (1) COMMERCIAL VEHICLE INFORMATION SYS11 TEMS AND NETWORKS.—The term ‘‘commercial vehi12 cle information systems and networks’’ means the in13 formation systems and communications networks that 

14 provide the capability to— 

15 (A) improve the safety of commercial vehicle 

16 operations; 

17 (B) increase the efficiency of regulatory in18 spection processes to reduce administrative bur19 dens by advancing technology to facilitate in20 spections and increase the effectiveness of enforce21 ment efforts; 

22 (C) advance electronic processing of reg23 istration information, driver licensing informa24 tion, fuel tax information, inspection and crash 

25 data, and other safety information; 
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1 (D) enhance the safe passage of commercial 

2 vehicles across the United States and across 

3 international borders; and 

4 (E) promote the communication of informa5 tion among the States and encourage multistate 

6 cooperation and corridor development. 

7 (2) COMMERCIAL VEHICLE OPERATIONS.—The 

8 term ‘‘commercial vehicle operations’’— 

9 (A) means motor carrier operations and 

10 motor vehicle regulatory activities associated 

11 with the commercial movement of goods, includ12 ing hazardous materials, and passengers; and 

13 (B) with respect to the public sector, in14 cludes the issuance of operating credentials, the 

15 administration of motor vehicle and fuel taxes, 

16 and roadside safety and border crossing inspec17 tion and regulatory compliance operations. 

18 (3) CORE DEPLOYMENT.—The term ‘‘core deploy19 ment’’ means the deployment of systems in a State 

20 necessary to provide the State with the following ca21 pabilities: 

22 (A) SAFETY INFORMATION EXCHANGE.— 

23 Safety information exchange to— 
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1 (i) electronically collect and transmit 

2 commercial vehicle and driver inspection 

3 data at a majority of inspection sites; 

4 (ii) connect to the Safety and Fitness 

5 Electronic Records system for access to 

6 interstate carrier and commercial vehicle 

7 data, summaries of past safety performance, 

8 and commercial vehicle credentials informa9 tion; and 

10 (iii) exchange carrier data and com11 mercial vehicle safety and credentials infor12 mation within the State and connect to 

13 Safety and Fitness Electronic Records for 

14 access to interstate carrier and commercial 

15 vehicle data. 

16 (B) INTERSTATE CREDENTIALS ADMINIS17 TRATION.—Interstate credentials administration 

18 to— 

19 (i) perform end-to-end processing, in20 cluding carrier application, jurisdiction ap21 plication processing, and credential 

22 issuance, of at least the International Reg23 istration Plan and International Fuel Tax 

24 Agreement credentials and extend this proc25 essing to other credentials, including intra-
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1 state, titling, oversize/overweight, carrier 

2 registration, and hazardous materials; 

3 (ii) connect to the International Reg4 istration Plan and International Fuel Tax 

5 Agreement clearinghouses; and 

6 (iii) have at least 10 percent of the 

7 transaction volume handled electronically, 

8 and have the capability to add more car9 riers and to extend to branch offices where 

10 applicable. 

11 (C) ROADSIDE SCREENING.—Roadside elec12 tronic screening to electronically screen trans13 ponder-equipped commercial vehicles at a min14 imum of 1 fixed or mobile inspection sites and 

15 to replicate this screening at other sites. 

16 (4) EXPANDED DEPLOYMENT.—The term ‘‘ex17 panded deployment’’ means the deployment of systems 

18 in a State that exceed the requirements of an core de19 ployment of commercial vehicle information systems 

20 and networks, improve safety and the productivity of 

21 commercial vehicle operations, and enhance transpor22 tation security. 

23 SEC. 4242. OUTREACH AND EDUCATION. 

24 (a) IN GENERAL.—The Secretary of Transportation, 

25 through the National Highway Traffic Safety Administra-
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1 tion and the Federal Motor Carrier Safety Administration, 

2 may undertake outreach and education initiatives, includ3 ing the ‘‘Share the Road Safely’’ program, that may reduce 

4 the number of highway accidents, injuries, and fatalities 

5 involving commercial motor vehicles. The Secretary may 

6 not use funds authorized by this part for the ‘‘Safety Is 

7 Good Business’’ program. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

9 authorized to be appropriated to the Secretary for fiscal 

10 year 2004 to carry out this section— 

11 (1) $250,000 for the Federal Motor Carrier Safe12 ty Administration; and 

13 (2) $750,000 for the National Highway Traffic 

14 Safety Administration. 

15 SEC. 4243. OPERATION OF RESTRICTED PROPERTY-CAR16 RYING UNITS ON NATIONAL HIGHWAY SYS17 TEM. 

18 (a) RESTRICTED PROPERTY-CARRYING UNIT DE19 FINED.—Section 31111(a) is amended— 

20 (1) by redesignating paragraph (3) as para21 graph (4); and 

22 (2) by inserting after paragraph (2) the fol23 lowing: 

24 ‘‘(3) RESTRICTED PROPERTY-CARRYING UNIT.— 

25 The term ‘restricted property-carrying unit’ means 
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1 any trailer, semi-trailer, container, or other property2 carrying unit that is longer than 53 feet.’’. 

3 (b) PROHIBITION ON OPERATION OF RESTRICTED

4 PROPERTY-CARRYING UNITS.— 

5 (1) IN GENERAL.—Section 31111(b)(1)(C) is 

6 amended to read as follows: 

7 ‘‘(C) allows operation on any segment of the Na8 tional Highway System, including the Interstate Sys9 tem, of a restricted property-carrying unit unless the 

10 operation is specified on the list published under sub11 section (h);’’. 

12 (2) EFFECTIVE DATE.—The amendment made by 

13 paragraph (1) shall take effect 270 days after the date 

14 of enactment of this subsection. 

15 (c) LIMITATIONS.—Section 31111 is amended by add16 ing at the end the following: 

17 ‘‘(h) RESTRICTED PROPERTY-CARRYING UNITS.— 

18 ‘‘(1) APPLICABILITY OF PROHIBITION.— 

19 ‘‘(A) IN GENERAL.—Notwithstanding sub20 section (b)(1)(C), a restricted property-carrying 

21 unit may continue to operate on a segment of the 

22 National Highway System if the operation of 

23 such unit is specified on the list published under 

24 paragraph (2). 
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1 ‘‘(B) APPLICABILITY OF STATE LAWS AND

2 REGULATIONS.—All operations specified on the 

3 list published under paragraph (2) shall con4 tinue to be subject to all State statutes, regula5 tions, limitations and conditions, including rout6 ing-specific, commodity-specific, and configura7 tion-specific designations and all other restric8 tions, in force on June 1, 2003. 

9 ‘‘(C) FIRE-FIGHTING UNITS.—Subsection 

10 (b)(1)(C) shall not apply to the operation of a 

11 restricted property-carrying unit that is used ex12 clusively for fire-fighting. 

13 ‘‘(2) LISTING OF RESTRICTED PROPERTY-CAR14 RYING UNITS.— 

15 ‘‘(A) IN GENERAL.—Not later than 60 days 

16 after the date of enactment of the Motor Carrier 

17 Safety Reauthorization Act of 2004, the Sec18 retary shall initiate a proceeding to determine 

19 and publish a list of restricted property-carrying 

20 units that were authorized by State officials pur21 suant to State statute or regulation on June 1, 

22 2003, and in actual and lawful operation on a 

23 regular or periodic basis (including seasonal op24 erations) on or before June 1, 2003. 
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1 ‘‘(B) LIMITATION.—A restricted property2 carrying unit may not be included on the list 

3 published under subparagraph (A) on the basis 

4 that a State law or regulation could have au5 thorized the operation of the unit at some prior 

6 date by permit or otherwise. 

7 ‘‘(C) PUBLICATION OF FINAL LIST.—Not 

8 later than 270 days after the date of enactment 

9 of this subsection, the Secretary shall publish a 

10 final list of restricted property-carrying units 

11 described in subparagraph (A). 

12 ‘‘(D) UPDATES.—The Secretary shall up13 date the list published under subparagraph (C) 

14 as necessary to reflect new designations made to 

15 the National Highway System. 

16 ‘‘(3) APPLICABILITY OF PROHIBITION.—The pro17 hibition established by subsection (b)(1)(C) shall 

18 apply to any new designation made to the National 

19 Highway System and remain in effect on those por20 tions of the National Highway System that cease to 

21 be designated as part of the National Highway Sys22 tem. 

23 ‘‘(4) LIMITATION ON STATUTORY CONSTRUC24 TION.—This subsection does not prevent a State from 

25 further restricting in any manner or prohibiting the 
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1 operation of a restricted property-carrying unit; ex2 cept that such restrictions or prohibitions shall be 

3 consistent with the requirements of this section and 

4 sections 31112 through 31114.’’. 

5 (d) ENFORCEMENT.—The second sentence of section 

6 141(a) of title 23, United States Code, is amended by strik7 ing ‘‘section 31112’’ and inserting ‘‘sections 31111 and 

8 31112’’. 

9 SEC. 4244. OPERATION OF LONGER COMBINATION VEHI10 CLES ON NATIONAL HIGHWAY SYSTEM. 

11 (a) IN GENERAL.—Section 31112 is amended— 

12 (1) by redesignating subsections (f) and (g) as 

13 subsections (g) and (h), respectively; and 

14 (2) by inserting after subsection (e) the following: 

15 ‘‘(f) NATIONAL HIGHWAY SYSTEM.— 

16 ‘‘(1) GENERAL RULE.—A State may not allow, 

17 on a segment of the National Highway System that 

18 is not covered under subsection (b) or (c), the oper19 ation of a commercial motor vehicle combination (ex20 cept a vehicle or load that cannot be dismantled eas21 ily or divided easily and that has been issued a spe22 cial permit under applicable State law) with more 

23 than 1 property-carrying unit (not including the 

24 truck tractor) whose property-carrying units are more 

25 than— 
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1 ‘‘(A) the maximum combination trailer, 

2 semitrailer, or other type of length limitation al3 lowed by law or regulation of that State on June 

4 1, 2003; or 

5 ‘‘(B) the length of the property-carrying 

6 units of those commercial motor vehicle combina7 tions, by specific configuration, in actual and 

8 lawful operation on a regular or periodic basis 

9 (including continuing seasonal operation) in 

10 that State on or before June 1, 2003. 

11 ‘‘(2) ADDITIONAL LIMITATIONS.— 

12 ‘‘(A) APPLICABILITY OF STATE RESTRIC13 TIONS.—A commercial motor vehicle combina14 tion whose operation in a State is not prohibited 

15 under paragraph (1) may continue to operate in 

16 the State on highways described in paragraph 

17 (1) only in compliance with all State laws, regu18 lations, limitations, and conditions, including 

19 routing-specific and configuration-specific des20 ignations and all other restrictions in force in 

21 the State on June 1, 2003. Subject to regulations 

22 prescribed by the Secretary under subsection (h), 

23 the State may make minor adjustments of a tem24 porary and emergency nature to route designa25 tions and vehicle operating restrictions in effect 
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1 on June 1, 2003, for specific safety purposes and 

2 road construction. 

3 ‘‘(B) ADDITIONAL STATE RESTRICTIONS.— 

4 This subsection does not prevent a State from 

5 further restricting in any manner or prohibiting 

6 the operation of a commercial motor vehicle com7 bination subject to this section, except that such 

8 restrictions or prohibitions shall be consistent 

9 with this section and sections 31113(a), 

10 31113(b), and 31114. 

11 ‘‘(C) MINOR ADJUSTMENTS.—A State mak12 ing a minor adjustment of a temporary and 

13 emergency nature as authorized by subparagraph 

14 (A) or further restricting or prohibiting the oper15 ation of a commercial motor vehicle combination 

16 as authorized by subparagraph (B) shall advise 

17 the Secretary not later than 30 days after the ac18 tion. The Secretary shall publish a notice of the 

19 action in the Federal Register. 

20 ‘‘(3) LIST OF STATE LENGTH LIMITATIONS.— 

21 ‘‘(A) STATE SUBMISSIONS.—Not later than 

22 60 days after the date of enactment of the Motor 

23 Carrier Safety Reauthorization Act of 2004, each 

24 State shall submit to the Secretary for publica25 tion a complete list of State length limitations 
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1 applicable to commercial motor vehicle combina2 tions operating in the State on the highways de3 scribed in paragraph (1). The list shall indicate 

4 the applicable State laws and regulations associ5 ated with the length limitations. If a State does 

6 not submit the information as required, the Sec7 retary shall complete and file the information for 

8 the State. 

9 ‘‘(B) PUBLICATION OF INTERIM LIST.—Not 

10 later than 90 days after the date of enactment of 

11 the Motor Carrier Safety Reauthorization Act of 

12 2004, the Secretary shall publish an interim list 

13 in the Federal Register consisting of all informa14 tion submitted under subparagraph (A). The 

15 Secretary shall review for accuracy all informa16 tion submitted by a State under subparagraph 

17 (A) and shall solicit and consider public com18 ment on the accuracy of the information. 

19 ‘‘(C) LIMITATION.—A law or regulation 

20 may not be included on the list submitted by a 

21 State or published by the Secretary merely be22 cause it authorized, or could have authorized, by 

23 permit or otherwise, the operation of commercial 

24 motor vehicle combinations not in actual oper-
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1 ation on a regular or periodic basis on or before 

2 June 1, 2003. 

3 ‘‘(D) PUBLICATION OF FINAL LIST.—Except 

4 as revised under this subparagraph or subpara5 graph (E), the list shall be published as final in 

6 the Federal Register not later than 270 days 

7 after the date of enactment of the Motor Carrier 

8 Safety Reauthorization Act of 2004. In pub9 lishing the final list, the Secretary shall make 

10 any revisions necessary to correct inaccuracies 

11 identified under subparagraph (B). After publi12 cation of the final list, commercial motor vehicle 

13 combinations prohibited under paragraph (1) 

14 may not operate on a highway described in 

15 paragraph (1) except as published on the list. 

16 ‘‘(E) INACCURACIES.—On the Secretary’s 

17 own motion or on request by any person (includ18 ing a State), the Secretary shall review the list 

19 published under subparagraph (D). If the Sec20 retary decides there is reason to believe a mistake 

21 was made in the accuracy of the list, the Sec22 retary shall begin a proceeding to decide whether 

23 a mistake was made. If the Secretary decides 

24 there was a mistake, the Secretary shall publish 

25 the correction.’’. 
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1 (b) CONFORMING AMENDMENTS.—Section 31112 is 

2 amended— 

3 (1) by inserting ‘‘126(e) or’’ before ‘‘127(d)’’ in 

4 subsection (g)(1) (as redesignated by subsection (a) of 

5 this section); 

6 (2) by inserting ‘‘(or June 1, 2003, with respect 

7 to highways described in subsection (f)(1))’’ after 

8 ‘‘June 2, 1991’’ in subsection (g)(3) (as redesignated 

9 by subsection (a) of this section); and 

10 (3) by striking ‘‘Not later than June 15, 1992, 

11 the Secretary’’ in subsection (h)(2) (as redesignated 

12 by subsection (a) of this section) and inserting ‘‘The 

13 Secretary’’; and 

14 (4) by inserting ‘‘or (f)’’ in subsection (h)(2) (as 

15 redesignated by subsection (a) of this section) after 

16 ‘‘subsection (d)’’. 

17 SEC. 4245. APPLICATION OF SAFETY STANDARDS TO CER18 TAIN FOREIGN MOTOR CARRIERS. 

19 (a) APPLICATION OF SAFETY STANDARDS.—Section 

20 30112 is amended— 

21 (1) by striking ‘‘person’’ in subsection (a) and 

22 inserting ‘‘person, including a foreign motor car23 rier,’’; and 

24 (2) by adding at the end the following: 

25 ‘‘(c) DEFINITIONS.—In this section: 
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1 ‘‘(1) FOREIGN MOTOR CARRIER.—The term ‘for2 eign motor carrier’ has the meaning given that term 

3 in section 13102 of this title. 

4 ‘‘(2) IMPORT.—The term ‘import’ means trans5 port by any means into the United States, on a per6 manent or temporary basis, including the transpor7 tation of a motor vehicle into the United States for 

8 the purpose of providing the transportation of cargo 

9 or passengers.’’. 

10 (b) REQUIREMENT FOR CERTIFICATE OF COMPLI11 ANCE.—Section 30115 is amended by adding at the end the 

12 following: 

13 ‘‘(c) APPLICATION TO FOREIGN MOTOR CARRIERS.— 

14 ‘‘(1) IN GENERAL.—The requirement for certifi15 cation described in subsection (a) shall apply to a for16 eign motor carrier that imports a motor vehicle or 

17 motor vehicle equipment into the United States. Such 

18 certification shall be made to the Secretary of Trans19 portation prior to the import of the vehicle or equip20 ment. 

21 ‘‘(2) DEFINITIONS.—In this subsection: 

22 ‘‘(A) FOREIGN MOTOR CARRIER.—The term 

23 ‘foreign motor carrier’ has the meaning given 

24 that term in section 13102 of this title. 
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1 ‘‘(B) IMPORT.—The term ‘import’ has the 

2 meaning given that term in section 30112 of this 

3 title.’’. 

4 (c) TIME FOR COMPLIANCE.—The amendments made 

5 by sections (a) and (b) shall take effect on September 1, 

6 2004. 

7 SEC. 4246. BACKGROUND CHECKS FOR MEXICAN AND CANA8 DIAN DRIVERS HAULING HAZARDOUS MATE9 RIALS. 

10 (a) IN GENERAL.—No commercial motor vehicle oper11 ator registered to operate in Mexico or Canada may operate 

12 a commercial motor vehicle transporting a hazardous mate13 rial in commerce in the United States until the operator 

14 has undergone a background records check similar to the 

15 background records check required for commercial motor ve16 hicle operators licensed in the United States to transport 

17 hazardous materials in commerce. 

18 (b) DEFINITIONS.—In this section: 

19 (1) HAZARDOUS MATERIALS.—The term ‘‘haz20 ardous material’’ means any material determined by 

21 the Secretary of Transportation to be a hazardous 

22 material for purposes of this section. 

23 (2) COMMERCIAL MOTOR VEHICLE.—The term 

24 ‘‘commercial motor vehicle’’ has the meaning given 
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1 that term by section 31101 of title 49, United States 

2 Code. 

3 (c) EFFECTIVE DATE.—This section takes effect on 

4 April 1, 2004. 

5 SEC. 4247. EXEMPTION OF DRIVERS OF UTILITY SERVICE 

6 VEHICLES. 

7 Section 345 of the National Highway System Designa8 tion Act of 1995 (49 U.S.C. 31136 note) is amended— 

9 (1) by striking paragraph (4) of subsection (a) 

10 and inserting the following: 

11 ‘‘(4) DRIVERS OF UTILITY SERVICE VEHICLES.— 

12 ‘‘(A) INAPPLICABILITY OF FEDERAL REGU13 LATIONS.—Such regulations may not apply to a 

14 driver of a utility service vehicle. 

15 ‘‘(B) PROHIBITION ON STATE REGULA16 TIONS.—A State, a political subdivision of a 

17 State, an interstate agency, or other entity con18 sisting of 2 or more States, may not enact or en19 force any law, rule, regulation, or standard that 

20 imposes requirements on a driver of a utility 

21 service vehicle that are similar to the require22 ments contained in such regulations.’’; 

23 (2) by striking ‘‘Nothing’’ in subsection (b) and 

24 inserting ‘‘Except as provided in subsection (a)(4), 

25 nothing’’; and 
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1 (3) by striking ‘‘paragraph (2)’’ in the first sen2 tence of subsection (c) and inserting ‘‘an exemption 

3 under paragraph (2) or (4)’’. 

4 SEC. 4248. OPERATION OF COMMERCIAL MOTOR VEHICLES 

5 TRANSPORTING AGRICULTURAL COMMOD6 ITIES AND FARM SUPPLIES. 

7 (a) EXEMPTION FROM HOURS-OF-SERVICE REQUIRE8 MENTS.— 

9 (1) IN GENERAL.—Section 345(c) of the National 

10 Highway System Designation Act of 1995 (49 U.S.C. 

11 31136 note), as amended by section 4247(3) of this 

12 title, is amended by striking ‘‘paragraph (2) or (4)’’ 

13 and inserting ‘‘paragraph (1), (2), or (4) of that sub14 section)’’. 

15 (2) APPLICABILITY.—The exemption provided by 

16 section 345(a)(1) of the National Highway System 

17 Designation Act of 1995 (49 U.S.C. 31136 note) shall 

18 apply to a person transporting agricultural commod19 ities or farm supplies for agricultural purposes under 

20 that section on and after the date of enactment of this 

21 Act regardless of any action taken by the Secretary 

22 of Transportation under section 345(c) of that Act be23 fore the date of enactment of this Act. 
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1 (b) DEFINITION OF AGRICULTURAL COMMODITY.—Sec2 tion 345(e) of the National Highway System Designation 

3 Act of 1995 (49 U.S.C. 31136 note) is amended— 

4 (1) by redesignating paragraphs (3), (4), (5), 

5 and (6) as paragraphs (5), (6), (4), and (7), respec6 tively, and moving the paragraphs so as to appear in 

7 numerical order; and 

8 (2) by inserting after paragraph (2) the fol9 lowing: 

10 ‘‘(3) AGRICULTURAL COMMODITY.—The term ‘ag11 ricultural commodity’ has the meaning given the term 

12 in section 102 of the Agricultural Trade Act of 1978 

13 (7 U.S.C. 5602).’’. 

14 SEC. 4249. SAFETY PERFORMANCE HISTORY SCREENING. 

15 (a) IN GENERAL.—Subchapter III of chapter 311, as 

16 amended by section 4228, is amended by adding at the end 

17 the following: 

18 ‘‘§ 31150. Safety performance history screening 

19 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

20 shall provide companies conducting pre-employment screen21 ing services for the motor carrier industry electronic access 

22 to— 

23 ‘‘(1) commercial motor vehicle accident reports, 

24 ‘‘(2) inspection reports that contain no driver-re25 lated safety violations, and 
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1 ‘‘(3) serious driver-related safety violation in2 spection reports that are contained in the Motor Car3 rier Management Information System. 

4 ‘‘(b) ESTABLISHMENT.—Prior to making information 

5 available to such companies under subsection (a), the Sec6 retary shall— 

7 ‘‘(1) ensure that any information released is 

8 done in accordance with the Fair Credit Reporting 

9 Act (15 U.S.C. 1681 et seq.) and all applicable Fed10 eral laws; 

11 ‘‘(2) require the driver applicant’s written con12 sent as a condition of releasing the information; 

13 ‘‘(3) ensure that the information made available 

14 to companies providing pre-employment screening 

15 services is not released to any other unauthorized 

16 company or individual, unless expressly authorized or 

17 required by law; and 

18 ‘‘(4) provide a procedure for drivers to remedy 

19 incorrect information in a timely manner. 

20 ‘‘(c) DESIGN.—To be eligible to have access to informa21 tion under subsection (a), a company conducting pre-em22 ployment screening services for the motor carrier industry 

23 shall utilize a screening process— 

24 ‘‘(1) that is designed to assist the motor carrier 

25 industry in assessing an individual driver’s crash 
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1 and serious safety violation inspection history as a 

2 pre-employment condition; 

3 ‘‘(2) the use of which is not mandatory; and 

4 ‘‘(3) which is used only during the pre-employ5 ment assessment of a driver-applicant. 

6 ‘‘(d) SERIOUS DRIVER-RELATED SAFETY VIOLA7 TIONS.—In this section, the term ‘serious driver-related 

8 safety violation’ means a violation listed in the North 

9 American Standard Driver Out-of-service Criteria that pro10 hibits the continued operation of a commercial motor vehi11 cle.’’. 

12 (b) CONFORMING AMENDMENT.—The chapter analysis 

13 for chapter 311, as amended by section 4228, is amended 

14 by inserting after the item relating to section 31149 the fol15 lowing: 

‘‘31150. Safety performance history screening.’’. 

16 SEC. 4250. COMPLIANCE REVIEW AUDIT. 

17 Within 1 year after the date of enactment of this Act, 

18 the Inspector General for the Department of Transportation 

19 shall audit the compliance reviews performed by the Federal 

20 Motor Carrier Safety Administration in fiscal year 2003 

21 and submit a report to the Senate Committee on Commerce, 

22 Science, and Transportation and the House of Representa23 tives Committee on Transportation and Infrastructure 

24 on— 
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1 (1) the enforcement actions taken as a result of 

2 the compliance reviews, including fines, suspension or 

3 revocation of operating authority, unsatisfactory rat4 ings, and follow-up actions to ensure compliance with 

5 Federal motor carrier safety regulations; 

6 (2) whether compliance reviews are or should be 

7 performed on a corporate-wide basis for all affiliates 

8 of the motor carrier selected for a compliance review 

9 as a result of its Safety Status Measurement System 

10 ranking or the submission of a complaint; 

11 (3) whether the enforcement actions taken by the 

12 Federal Motor Carrier Safety Administration are 

13 adequate to assure future compliance of the motor 

14 carrier with Federal safety regulations and what de15 terrent effect those enforcement actions may have in16 dustry-wide; 

17 (4) whether the methodology for calculating the 

18 crash rate of commercial motor vehicles in the Safety 

19 Status Measurement System would be more appro20 priately based on the number of vehicle miles driven 

21 by a motor carrier rather than the number of trucks 

22 operated by the carrier; 

23 (5) whether the public access information in the 

24 Safety Status Measurement System meets the agency’s 

25 requirements under the Data Quality Act; and 
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1 (6) the existing information Selection System In2 dicators criteria and weighting and whether the safe3 ty evaluation area containing data on accidents 

4 should receive higher priority for complaince reviews 

5 and inspection selection. 

6 PART III—UNIFIED CARRIER REGISTRATION 

7 SEC. 4261. SHORT TITLE. 

8 This part may be cited as the ‘‘Unified Carrier Reg9 istration Act of 2004’’. 

10 SEC. 4262. RELATIONSHIP TO OTHER LAWS. 

11 Except as provided in section 14504 of title 49, United 

12 States Code, and sections 14504a and 14506 of title 49, 

13 United States Code, as added by this part, this part is not 

14 intended to prohibit any State or any political subdivision 

15 of any State from enacting, imposing, or enforcing any law 

16 or regulation with respect to a motor carrier, motor private 

17 carrier, broker, freight forwarder, or leasing company that 

18 is not otherwise prohibited by law. 

19 SEC. 4263. INCLUSION OF MOTOR PRIVATE AND EXEMPT 

20 CARRIERS. 

21 (a) PERSONS REGISTERED TO PROVIDE TRANSPOR22 TATION OR SERVICE AS A MOTOR CARRIER OR MOTOR PRI23 VATE CARRIER.—Section 13905 is amended by— 

24 (1) redesignating subsections (b), (c), (d), and (e) 

25 as subsections (c), (d), (e), and (f), respectively; and 
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1 (2) inserting after subsection (a) the following: 

2 ‘‘(b) PERSON REGISTERED WITH SECRETARY.—Any 

3 person having registered with the Secretary to provide 

4 transportation or service as a motor carrier or motor pri5 vate carrier under this title, as in effect on January 1, 

6 2002, but not having registered pursuant to section 

7 13902(a) of this title, shall be deemed, for purposes of this 

8 part, to be registered to provide such transportation or serv9 ice for purposes of sections 13908 and 14504a of this title.’’. 

10 (b) SECURITY REQUIREMENT.—Section 13906(a) is 

11 amended by— 

12 (1) redesignating paragraphs (2) and (3) as 

13 paragraphs (3) and (4), respectively; and 

14 (2) inserting the following: 

15 ‘‘(2) SECURITY REQUIREMENT.—Not later than 

16 120 days after the date of enactment of the Unified 

17 Carrier Registration Act of 2004, any person, other 

18 than a motor private carrier, registered with the Sec19 retary to provide transportation or service as a motor 

20 carrier under section 13905(b) of this title shall file 

21 with the Secretary a bond, insurance policy, or other 

22 type of security approved by the Secretary, in an 

23 amount not less than required by sections 31138 and 

24 31139 of this title.’’. 
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1 SEC. 4264. UNIFIED CARRIER REGISTRATION SYSTEM. 

2 (a) Section 13908 is amended to read as follows: 

3 ‘‘§ 13908. Registration and other reforms 

4 ‘‘(a) ESTABLISHMENT OF UNIFIED CARRIER REG5 ISTRATION SYSTEM.—The Secretary, in cooperation with 

6 the States, representatives of the motor carrier, motor pri7 vate carrier, freight forwarder and broker industries, and 

8 after notice and opportunity for public comment, shall issue 

9 within 1 year after the date of enactment of the Unified 

10 Carrier Registration Act of 2004 regulations to establish, 

11 an online, Federal registration system to be named the Uni12 fied Carrier Registration System to replace— 

13 ‘‘(1) the current Department of Transportation 

14 identification number system, the Single State Reg15 istration System under section 14504 of this title; 

16 ‘‘(2) the registration system contained in this 

17 chapter and the financial responsibility information 

18 system under section 13906; and 

19 ‘‘(3) the service of process agent systems under 

20 sections 503 and 13304 of this title. 

21 ‘‘(b) ROLE AS CLEARINGHOUSE AND DEPOSITORY OF

22 INFORMATION.—The Unified Carrier Registration System 

23 shall serve as a clearinghouse and depository of information 

24 on, and identification of, all foreign and domestic motor 

25 carriers, motor private carriers, brokers, and freight for26 warders, and others required to register with the Depart-
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1 ment, including information with respect to a carrier’s safe2 ty rating, compliance with required levels of financial re3 sponsibility, and compliance with the provisions of section 

4 14504a of this title. The Secretary shall ensure that Federal 

5 agencies, States, representatives of the motor carrier indus6 try, and the public have access to the Unified Carrier Reg7 istration System, including the records and information 

8 contained in the System. 

9 ‘‘(c) PROCEDURES FOR CORRECTING INFORMATION.— 

10 Not later than 60 days after the effective date of this section, 

11 the Secretary shall prescribe regulations establishing proce12 dures that enable a motor carrier to correct erroneous infor13 mation contained in any part of the Unified Carrier Reg14 istration System. 

15 ‘‘(d) FEE SYSTEM.—The Secretary shall establish, 

16 under section 9701 of title 31, a fee system for the Unified 

17 Carrier Registration System according to the following 

18 guidelines: 

19 ‘‘(1) REGISTRATION AND FILING EVIDENCE OF

20 FINANCIAL RESPONSIBILITY.—The fee for new reg21 istrants shall as nearly as possible cover the costs of 

22 processing the registration and conducting the safety 

23 audit or examination, if required, but shall not exceed 

24 $300. 
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1 ‘‘(2) EVIDENCE OF FINANCIAL RESPONSI2 BILITY.—The fee for filing evidence of financial re3 sponsibility pursuant to this section shall not exceed 

4 $10 per filing. No fee shall be charged for a filing for 

5 purposes of designating an agent for service of process 

6 or the filing of other information relating to financial 

7 responsibility. 

8 ‘‘(3) ACCESS AND RETRIEVAL FEES.— 

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

10 subparagraph (B), the fee system shall include a 

11 nominal fee for the access to or retrieval of infor12 mation from the Unified Carrier Registration 

13 System to cover the costs of operating and up14 grading the System, including the personnel 

15 costs incurred by the Department and the costs 

16 of administration of the Unified Carrier Reg17 istration Agreement. 

18 ‘‘(B) EXCEPTIONS.—There shall be no fee 

19 charged— 

20 ‘‘(i) to any agency of the Federal Gov21 ernment or a State government or any po22 litical subdivision of any such government 

23 for the access to or retrieval of information 

24 and data from the Unified Carrier Reg25 istration System for its own use; or 
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1 ‘‘(ii) to any representative of a motor 

2 carrier, motor private carrier, leasing com3 pany, broker, or freight forwarder (as each 

4 is defined in section 14504a of this title) for 

5 the access to or retrieval of the individual 

6 information related to such entity from the 

7 Unified Carrier Registration System for the 

8 individual use of such entity.’’. 

9 SEC. 4265. REGISTRATION OF MOTOR CARRIERS BY STATES. 

10 (a) TERMINATION OF REGISTRATION PROVISIONS.— 

11 Section 14504 is amended by adding at the end the fol12 lowing: 

13 ‘‘(d) TERMINATION OF PROVISIONS.—Subsections (b) 

14 and (c) shall cease to be effective on the first January 1st 

15 occurring more than 12 months after the date of enactment 

16 of the Unified Carrier Registration Act of 2004.’’. 

17 (b) UNIFIED CARRIER REGISTRATION SYSTEM PLAN

18 AND AGREEMENT.—Chapter 145 is amended by inserting 

19 after section 14504 the following: 

20 ‘‘§ 14504a. Unified carrier registration system plan 

21 and agreement 

22 ‘‘(a) DEFINITIONS.—In this section and section 14506 

23 of this title: 

24 ‘‘(1) COMMERCIAL MOTOR VEHICLE.— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘commercial motor 

3 vehicle’ has the meaning given the term in sec4 tion 31101 of this title. 

5 ‘‘(B) EXCEPTION.—With respect to motor 

6 carriers required to make any filing or pay any 

7 fee to a State with respect to the motor carrier’s 

8 authority or insurance related to operation with9 in such State, the term ‘commercial motor vehi10 cle’ means any self-propelled vehicle used on the 

11 highway in commerce to transport passengers or 

12 property for compensation regardless of the gross 

13 vehicle weight rating of the vehicle or the number 

14 of passengers transported by such vehicle. 

15 ‘‘(2) BASE-STATE.— 

16 ‘‘(A) IN GENERAL.—The term ‘Base-State’ 

17 means, with respect to the Unified Carrier Reg18 istration Agreement, a State— 

19 ‘‘(i) that is in compliance with the re20 quirements of subsection (e); and 

21 ‘‘(ii) in which the motor carrier, motor 

22 private carrier, broker, freight forwarder or 

23 leasing company maintains its principal 

24 place of business. 
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1 ‘‘(B) DESIGNATION OF BASE-STATE.—A 

2 motor carrier, motor private carrier, broker, 

3 freight forwarder or leasing company may des4 ignate another State in which it maintains an 

5 office or operating facility as its Base-State in 

6 the event that— 

7 ‘‘(i) the State in which the motor car8 rier, motor private carrier, broker, freight 

9 forwarder or leasing company maintains its 

10 principal place of business is not in compli11 ance with the requirements of subsection (e); 

12 or 

13 ‘‘(ii) the motor carrier, motor private 

14 carrier, broker, freight forwarder or leasing 

15 company does not have a principal place of 

16 business in the United States. 

17 ‘‘(3) INTRASTATE FEE.—The term ‘intrastate fee’ 

18 means any fee, tax, or other type of assessment, in19 cluding per vehicle fees and gross receipts taxes, im20 posed on a motor carrier or motor private carrier for 

21 the renewal of the intrastate authority or insurance 

22 filings of such carrier with a State. 

23 ‘‘(4) LEASING COMPANY.—The term ‘leasing com24 pany’ means a lessor that is engaged in the business 

25 of leasing or renting for compensation motor vehicles 
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1 without drivers to a motor carrier, motor private car2 rier, or freight forwarder. 

3 ‘‘(5) MOTOR CARRIER.—The term ‘motor carrier’ 

4 has the meaning given the term in section 13102(12) 

5 of this title, but shall include all carriers that are oth6 erwise exempt from the provisions of part B of this 

7 title pursuant to the provisions of chapter 135 of this 

8 title or exemption actions by the former Interstate 

9 Commerce Commission under this title. 

10 ‘‘(6) PARTICIPATING STATE.—The term ‘partici11 pating state’ means a State that has complied with 

12 the requirements of subsection (e) of this section. 

13 ‘‘(7) SSRS.—The term ‘SSRS’ means the Single 

14 State Registration System in effect on the date of en15 actment of the Unified Carrier Registration Act of 

16 2004. 

17 ‘‘(8) UNIFIED CARRIER REGISTRATION AGREE18 MENT.—The terms ‘Unified Carrier Registration 

19 Agreement’ and ‘UCR Agreement’ mean the interstate 

20 agreement developed under the Unified Carrier Reg21 istration Plan governing the collection and distribu22 tion of registration and financial responsibility infor23 mation provided and fees paid by motor carriers, 

24 motor private carriers, brokers, freight forwarders and 

25 leasing companies pursuant to this section. 
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1 ‘‘(9) UNIFIED CARRIER REGISTRATION PLAN.— 

2 The terms ‘Unified Carrier Registration Plan’ and 

3 ‘UCR Plan’ mean the organization of State, Federal 

4 and industry representatives responsible for devel5 oping, implementing and administering the Unified 

6 Carrier Registration Agreement. 

7 ‘‘(10) VEHICLE REGISTRATION.—The term ‘vehi8 cle registration’ means the registration of any com9 mercial motor vehicle under the International Reg10 istration Plan or any other registration law or regu11 lation of a jurisdiction. 

12 ‘‘(b) APPLICABILITY OF PROVISIONS TO FREIGHT FOR13 WARDERS.—A Freight forwarder that operates commercial 

14 motor vehicles and is not required to register as a carrier 

15 pursuant to section 13903(b) of this title shall be subject 

16 to the provisions of this section as if a motor carrier. 

17 ‘‘(c) UNREASONABLE BURDEN.—For purposes of this 

18 section, it shall be considered an unreasonable burden upon 

19 interstate commerce for any State or any political subdivi20 sion of a State, or any political authority of 2 or more 

21 States— 

22 ‘‘(1) to enact, impose, or enforce any requirement 

23 or standards, or levy any fee or charge on any inter24 state motor carrier or interstate motor private carrier 

25 in connection with— 
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1 ‘‘(A) the registration with the State of the 

2 interstate operations of a motor carrier or motor 

3 private carrier; 

4 ‘‘(B) the filing with the State of informa5 tion relating to the financial responsibility of a 

6 motor carrier or motor private carrier pursuant 

7 to sections 31138 or 31139 of this title; 

8 ‘‘(C) the filing with the State of the name 

9 of the local agent for service of process of a motor 

10 carrier or motor private carrier pursuant to sec11 tions 503 or 13304 of this title; or 

12 ‘‘(D) the annual renewal of the intrastate 

13 authority, or the insurance filings, of a motor 

14 carrier or motor private carrier, or other intra15 state filing requirement necessary to operate 

16 within the State, if the motor carrier or motor 

17 private carrier is— 

18 ‘‘(i) registered in compliance with sec19 tion 13902 or section 13905(b) of this title; 

20 and 

21 ‘‘(ii) in compliance with the laws and 

22 regulations of the State authorizing the car23 rier to operate in the State pursuant to sec24 tion 14501(c)(2)(A) of this title 

25 except with respect to— 
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1 ‘‘(I) intrastate service provided by 

2 motor carriers of passengers that is not 

3 subject to the preemptive provisions of 

4 section 14501(a) of this title, 

5 ‘‘(II) motor carriers of property, 

6 motor private carriers, brokers, or 

7 freight forwarders, or their services or 

8 operations, that are described in sub9 paragraphs (B) and (C) of section 

10 14501(c)(2) and section 14506(c)(3) or 

11 permitted pursuant to section 14506(b) 

12 of this title, and 

13 ‘‘(III) the intrastate transpor14 tation of waste or recycables by any 

15 carrier); or 

16 ‘‘(2) to require any interstate motor carrier or 

17 motor private carrier to pay any fee or tax, not pro18 scribed by paragraph (1)(D) of this subsection, that 

19 a motor carrier or motor private carrier that pays a 

20 fee which is proscribed by that paragraph is not re21 quired to pay. 

22 ‘‘(d) UNIFIED CARRIER REGISTRATION PLAN.— 

23 ‘‘(1) BOARD OF DIRECTORS.— 

24 ‘‘(A) GOVERNANCE OF PLAN.—The Unified 

25 Carrier Registration Plan shall be governed by a 
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1 Board of Directors consisting of representatives 

2 of the Department of Transportation, Partici3 pating States, and the motor carrier industry. 

4 ‘‘(B) NUMBER.—The Board shall consist of 

5 15 directors. 

6 ‘‘(C) COMPOSITION.—The Board shall be 

7 composed of directors appointed as follows: 

8 ‘‘(i) FEDERAL MOTOR CARRIER SAFETY

9 ADMINISTRATION.—The Secretary shall ap10 point 1 director from each of the Federal 

11 Motor Carrier Safety Administration’s 4 

12 Service Areas (as those areas were defined 

13 by the Federal Motor Carrier Safety Ad14 ministration on January 1, 2003), from 

15 among the chief administrative officers of 

16 the State agencies responsible for overseeing 

17 the administration of the UCR Agreement. 

18 ‘‘(ii) STATE AGENCIES.—The Secretary 

19 shall appoint 5 directors from the profes20 sional staffs of State agencies responsible for 

21 overseeing the administration of the UCR 

22 Agreement in their respective States. Nomi23 nees for these 5 directorships shall be sub24 mitted to the Secretary by the national as25 sociation of professional employees of the 
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1 State agencies responsible for overseeing the 

2 administration of the UCR Agreement in 

3 their respective States. 

4 ‘‘(iii) MOTOR CARRIER INDUSTRY.— 

5 The Secretary shall appoint 5 directors 

6 from the motor carrier industry. At least 1 

7 of the appointees shall be an employee of the 

8 national trade association representing the 

9 general motor carrier of property industry. 

10 ‘‘(iv) DEPARTMENT OF TRANSPOR11 TATION.—The Secretary shall appoint the 

12 Deputy Administrator of the Federal Motor 

13 Carrier Safety Administration, or such 

14 other presidential appointee from the 

15 United States Department of Transpor16 tation, as the Secretary may designate, to 

17 serve as a director. 

18 ‘‘(D) CHAIRPERSON AND VICE-CHAIR19 PERSON.—The Secretary shall designate 1 direc20 tor as Chairperson and 1 director as Vice-Chair21 person of the Board. The Chairperson and Vice22 Chairperson shall serve in such capacity for the 

23 term of their appointment as directors. 

24 ‘‘(E) TERM.—In appointing the initial 

25 Board, the Secretary shall designate 5 of the ap-
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1 pointed directors for initial terms of 3 years, 5 

2 of the appointed directors for initial terms of 2 

3 years, and 5 of the appointed directors for ini4 tial terms of 1 year. Thereafter, all directors 

5 shall be appointed for terms of 3 years, except 

6 that the term of the Deputy Administrator or 

7 other individual designated by the Secretary 

8 under subparagraph (C)(iv) shall be at the dis9 cretion of the Secretary. A director may be ap10 pointed to succeed himself or herself. A director 

11 may continue to serve on the Board until his or 

12 her successor is appointed. 

13 ‘‘(2) RULES AND REGULATIONS GOVERNING THE

14 UCR AGREEMENT.—The Board of Directors shall de15 velop the rules and regulations to govern the UCR 

16 Agreement and submit such rules and regulations to 

17 the Secretary for approval and adoption. The rules 

18 and regulations shall— 

19 ‘‘(A) prescribe uniform forms and formats, 

20 for— 

21 ‘‘(i) the annual submission of the in22 formation required by a Base-State of a 

23 motor carrier, motor private carrier, leasing 

24 company, broker, or freight forwarder; 
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1 ‘‘(ii) the transmission of information 

2 by a Participating State to the Unified 

3 Carrier Registration System; 

4 ‘‘(iii) the payment of excess fees by a 

5 State to the designated depository and the 

6 distribution of fees by the depository to 

7 those States so entitled; and 

8 ‘‘(iv) the providing of notice by a 

9 motor carrier, motor private carrier, broker, 

10 freight forwarder, or leasing company to the 

11 Board of the intent of such entity to change 

12 its Base-State, and the procedures for a 

13 State to object to such a change under sub14 paragraph (C) of this paragraph; 

15 ‘‘(B) provide for the administration of the 

16 Unified Carrier Registration Agreement, includ17 ing procedures for amending the Agreement and 

18 obtaining clarification of any provision of the 

19 Agreement; 

20 ‘‘(C) provide procedures for dispute resolu21 tion that provide due process for all involved 

22 parties; and 

23 ‘‘(D) designate a depository. 

24 ‘‘(3) COMPENSATION AND EXPENSES.—Except for 

25 the representative of the Department of Transpor-
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1 tation appointed pursuant to paragraph 1(D), no di2 rector shall receive any compensation or other benefits 

3 from the Federal Government for serving on the 

4 Board or be considered a Federal employee as a result 

5 of such service. All Directors shall be reimbursed for 

6 expenses they incur attending duly called meetings of 

7 the Board. In addition, the Board may approve the 

8 reimbursement of expenses incurred by members of 

9 any subcommittee or task force appointed pursuant to 

10 paragraph (5). The reimbursement of expenses to di11 rectors and subcommittee and task force members 

12 shall be based on the then applicable rules of the Gen13 eral Service Administration governing reimbursement 

14 of expenses for travel by Federal employees. 

15 ‘‘(4) MEETINGS.— 

16 ‘‘(A) IN GENERAL.—The Board shall meet 

17 at least once per year. Additional meetings may 

18 be called, as needed, by the Chairperson of the 

19 Board, a majority of the directors, or the Sec20 retary. 

21 ‘‘(B) QUORUM.—A majority of directors 

22 shall constitute a quorum. 

23 ‘‘(C) VOTING.—Approval of any matter be24 fore the Board shall require the approval of a 

25 majority of all directors present at the meeting. 
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1 ‘‘(D) OPEN MEETINGS.—Meetings of the 

2 Board and any subcommittees or task forces ap3 pointed pursuant to paragraph (5) of this sec4 tion shall be subject to the provisions of section 

5 552b of title 5. 

6 ‘‘(5) SUBCOMMITTEES.— 

7 ‘‘(A) INDUSTRY ADVISORY SUB8 COMMITTEE.—The Chairperson shall appoint an 

9 Industry Advisory Subcommittee. The Industry 

10 Advisory Subcommittee shall consider any mat11 ter before the Board and make recommendations 

12 to the Board. 

13 ‘‘(B) OTHER SUBCOMMITTEES.—The Chair14 person shall appoint an Audit Subcommittee, a 

15 Dispute Resolution Subcommittee, and any ad16 ditional subcommittees and task forces that the 

17 Board determines to be necessary. 

18 ‘‘(C) MEMBERSHIP.—The chairperson of 

19 each subcommittee shall be a director. The other 

20 members of subcommittees and task forces may 

21 be directors or non-directors. 

22 ‘‘(D) REPRESENTATION ON SUBCOMMIT23 TEES.—Except for the Industry Advisory Sub24 committee (the membership of which shall consist 

25 solely of representatives of entities subject to the 
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1 fee requirements of subsection (f) of this section), 

2 each subcommittee and task force shall include 

3 representatives of the Federal Motor Carrier 

4 Safety Administration, the Participating States, 

5 and the motor carrier industry. 

6 ‘‘(6) DELEGATION OF AUTHORITY.—The Board 

7 may contract with any private commercial or non8 profit entity or any agency of a State to perform ad9 ministrative functions required under the Unified 

10 Carrier Registration Agreement, but may not delegate 

11 its decision or policy-making responsibilities. 

12 ‘‘(7) DETERMINATION OF FEES.—The Board 

13 shall determine the annual fees to be assessed carriers, 

14 leasing companies, brokers, and freight forwarders 

15 pursuant to the Unified Carrier Registration Agree16 ment. In determining the level of fees to be assessed 

17 in the next Agreement year, the Board shall con18 sider— 

19 ‘‘(A) the administrative costs associated 

20 with the Unified Carrier Registration Plan and 

21 the Agreement; 

22 ‘‘(B) whether the revenues generated in the 

23 previous year and any surplus or shortage from 

24 that or prior years enable the Participating 
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1 States to achieve the revenue levels set by the 

2 Board; and 

3 ‘‘(C) the parameters for fees set forth in sub4 section (f)(1). 

5 ‘‘(8) LIABILITY PROTECTIONS FOR DIRECTORS.— 

6 No individual appointed to serve on the Board shall 

7 be liable to any other director or to any other party 

8 for harm, either economic or non-economic, caused by 

9 an act or omission of the individual arising from the 

10 individual’s service on the Board if— 

11 ‘‘(A) the individual was acting within the 

12 scope of his or her responsibilities as a director; 

13 and 

14 ‘‘(B) the harm was not caused by willful or 

15 criminal misconduct, gross negligence, reckless 

16 misconduct, or a conscious, flagrant indifference 

17 to the right or safety of the party harmed by the 

18 individual. 

19 ‘‘(9) INAPPLICABILITY OF FEDERAL ADVISORY

20 COMMITTEE ACT.—The Federal Advisory Committee 

21 Act (5 U.S.C. App.) shall not apply to the Unified 

22 Carrier Registration Plan or its committees. 

23 ‘‘(10) CERTAIN FEES NOT AFFECTED.—This sec24 tion does not limit the amount of money a State may 

25 charge for vehicle registration or the amount of any 
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1 fuel use tax a State may impose pursuant to the 

2 International Fuel Tax Agreement. 

3 ‘‘(e) STATE PARTICIPATION.— 

4 ‘‘(1) STATE PLAN.—No State shall be eligible to 

5 participate in the Unified Carrier Registration Plan 

6 or to receive any revenues derived under the Agree7 ment, unless the State submits to the Secretary, not 

8 later than 3 years after the date of enactment of the 

9 Unified Carrier Registration Act of 2004, a plan— 

10 ‘‘(A) identifying the State agency that has 

11 or will have the legal authority, resources, and 

12 qualified personnel necessary to administer the 

13 Unified Carrier Registration Agreement in ac14 cordance with the rules and regulations promul15 gated by the Board of Directors of the Unified 

16 Carrier Registration Plan; and 

17 ‘‘(B) containing assurances that an amount 

18 at least equal to the revenue derived by the State 

19 from the Unified Carrier Registration Agreement 

20 shall be used for motor carrier safety programs, 

21 enforcement, and financial responsibility, or the 

22 administration of the UCR Plan and UCR 

23 Agreement. 

24 ‘‘(2) AMENDED PLANS.—A State may change the 

25 agency designated in the plan submitted under this 
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1 subsection by filing an amended plan with the Sec2 retary and the Chairperson of the Unified Carrier 

3 Registration Plan. 

4 ‘‘(3) WITHDRAWAL OF PLAN.—In the event a 

5 State withdraws, or notifies the Secretary that it is 

6 withdrawing, the plan submitted under this sub7 section, the State may no longer participate in the 

8 Unified Carrier Registration Agreement or receive 

9 any portion of the revenues derived under the Agree10 ment. 

11 ‘‘(4) TERMINATION OF ELIGIBILITY.—If a State 

12 fails to submit a plan to the Secretary as required by 

13 paragraph (1) or withdraws its plan under para14 graph (3), the State shall be prohibited from subse15 quently submitting or resubmitting a plan or partici16 pating in the Agreement. 

17 ‘‘(5) PROVISION OF PLAN TO CHAIRPERSON.— 

18 The Secretary shall provide a copy of each plan sub19 mitted under this subsection to the initial Chair20 person of the Board of Directors of the Unified Car21 rier Registration Plan not later than 90 days of ap22 pointing the Chairperson. 

23 ‘‘(f) CONTENTS OF UNIFIED CARRIER REGISTRATION

24 AGREEMENT.—The Unified Carrier Registration Agree25 ment shall provide the following: 
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1 ‘‘(1) DETERMINATION OF FEES.— 

2 ‘‘(A) Fees charged motor carriers, motor 

3 private carriers, or freight forwarders in connec4 tion with the filing of proof of financial respon5 sibility under the UCR Agreement shall be based 

6 on the number of commercial motor vehicles 

7 owned or operated by the motor carrier, motor 

8 private carrier, or freight forwarder. Brokers 

9 and leasing companies shall pay the same fees as 

10 the smallest bracket of motor carriers, motor pri11 vate carriers, and freight forwarders. 

12 ‘‘(B) The fees shall be determined by the 

13 Board with the approval of the Secretary. 

14 ‘‘(C) The Board shall develop no more than 

15 6 and no less than 4 ranges of carriers by size 

16 of fleet. 

17 ‘‘(D) The fee scale shall be progressive and 

18 use different vehicle ratios for different ranges of 

19 carrier fleet size. 

20 ‘‘(E) The Board may adjust the fees within 

21 a reasonable range on an annual basis if the rev22 enues derived from the fees— 

23 ‘‘(i) are insufficient to provide the rev24 enues to which the States are entitled under 

25 this section; or 
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1 ‘‘(ii) exceed those revenues. 

2 ‘‘(2) DETERMINATION OF OWNERSHIP OR OPER3 ATION.—Commercial motor vehicles owned or oper4 ated by a motor carrier, motor private carrier, or 

5 freight forwarder shall mean those commercial motor 

6 vehicles registered in the name of the motor carrier, 

7 motor private carrier, or freight forwarder or con8 trolled by the motor carrier, motor private carrier, or 

9 freight forwarder under a long term lease during a 

10 vehicle registration year. 

11 ‘‘(3) CALCULATION OF NUMBER OF COMMERCIAL

12 MOTOR VEHICLES OWNED OR OPERATED.—The num13 ber of commercial motor vehicles owned or operated 

14 by a motor carrier, motor private carrier, or freight 

15 forwarder for purposes of subsection (e)(1) shall be 

16 based either on the number of commercial motor vehi17 cles the motor carrier, motor private carrier, or 

18 freight forwarder has indicated it operates on its most 

19 recently filed MCS–150 or the total number of such 

20 vehicles it owned or operated for the 12-month period 

21 ending on June 30 of the year immediately prior to 

22 the each registration year of the Unified Carrier Reg23 istration System. 

24 ‘‘(4) PAYMENT OF FEES.—Motor carriers, motor 

25 private carriers, leasing companies, brokers, and 
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1 freight forwarders shall pay all fees required under 

2 this section to their Base-State pursuant to the UCR 

3 Agreement. 

4 ‘‘(g) PAYMENT OF FEES.—Revenues derived under the 

5 UCR Agreement shall be allocated to Participating States 

6 as follows: 

7 ‘‘(1) A State that participated in the Single 

8 State Registration System in the last calendar year 

9 ending before the date of enactment of the Unified 

10 Carrier Registration Act of 2004 and complies with 

11 the requirements of subsection (e) of this section is en12 titled to receive a portion of the UCR Agreement reve13 nues generated under the Agreement equivalent to the 

14 revenues it received under the SSRS in the last cal15 endar year ending before the date of enactment of the 

16 Unified Carrier Registration Act of 2004, as long as 

17 the State continues to comply with the provisions of 

18 subsection (e). 

19 ‘‘(2) A State that collected intrastate registration 

20 fees from interstate motor carriers, interstate motor 

21 private carriers, or interstate exempt carriers and 

22 complies with the requirements of subsection (e) of 

23 this section is entitled to receive an additional por24 tion of the UCR Agreement revenues generated under 

25 the Agreement equivalent to the revenues it received 
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1 from such interstate carriers in the last calendar year 

2 ending before the date of enactment of the Unified 

3 Carrier Registration Act of 2004, as long as the State 

4 continues to comply with the provisions of subsection 

5 (e). 

6 ‘‘(3) States that comply with the requirements of 

7 subsection (e) of this section but did not participate 

8 in SSRS during the last calendar year ending before 

9 the date of enactment of the Unified Carrier Registra10 tion Act of 2004 shall be entitled to an annual allot11 ment not to exceed $500,000 from the UCR Agreement 

12 revenues generated under the Agreement as long as the 

13 State continues to comply with the provisions of sub14 section (e). 

15 ‘‘(4) The amount of UCR Agreement revenues to 

16 which a State is entitled under this section shall be 

17 calculated by the Board and approved by the Sec18 retary. 

19 ‘‘(h) DISTRIBUTION OF UCR AGREEMENT REVE20 NUES.— 

21 ‘‘(1) ELIGIBILITY.—Each State that is in com22 pliance with the provisions of subsection (e) shall be 

23 entitled to a portion of the revenues derived from the 

24 UCR Agreement in accordance with subsection (g). 
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1 ‘‘(2) ENTITLEMENT TO REVENUES.—A State that 

2 is in compliance with the provisions of subsection (e) 

3 may retain an amount of the gross revenues it collects 

4 from motor carriers, motor private carriers, brokers, 

5 freight forwarders and leasing companies under the 

6 UCR Agreement equivalent to the portion of revenues 

7 to which the State is entitled under subsection (g). All 

8 revenues a Participating State collects in excess of the 

9 amount to which the State is so entitled shall be for10 warded to the depository designated by the Board 

11 under subsection (d)(2)(D). 

12 ‘‘(3) DISTRIBUTION OF FUNDS FROM DEPOSI13 TORY.—The excess funds collected in the depository 

14 shall be distributed as follows: 

15 ‘‘(A) Excess funds shall be distributed on a 

16 pro rata basis to each Participating State that 

17 did not collect revenues under the UCR Agree18 ment equivalent to the amount such State is en19 titled under subsection (g), except that the sum 

20 of the gross UCR Agreement revenues collected by 

21 a Participating State and the amount distrib22 uted to it from the depository shall not exceed the 

23 amount to which the State is entitled under sub24 section (g). 
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1 ‘‘(B) Any excess funds held by the deposi2 tory after all distributions under subparagraph 

3 (A) have been made shall be used to pay the ad4 ministrative costs of the UCR Plan and the UCR 

5 Agreement. 

6 ‘‘(C) Any excess funds held by the deposi7 tory after distributions and payments under sub8 paragraphs (A) and (B) shall be retained in the 

9 depository, and the UCR Agreement fees for 

10 motor carriers, motor private carriers, leasing 

11 companies, freight forwarders, and brokers for 

12 the next fee year shall be reduced by the Board 

13 accordingly. 

14 ‘‘(i) ENFORCEMENT.— 

15 ‘‘(1) CIVIL ACTIONS.—Upon request by the Sec16 retary of Transportation, the Attorney General may 

17 bring a civil action in a court of competent jurisdic18 tion to enforce compliance with this section and with 

19 the terms of the Unified Carrier Registration Agree20 ment. 

21 ‘‘(2) VENUE.—An action under this section may 

22 be brought only in the Federal court sitting in the 

23 State in which an order is required to enforce such 

24 compliance. 
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1 ‘‘(3) RELIEF.—Subject to section 1341 of title 

2 28, the court, on a proper showing— 

3 ‘‘(A) shall issue a temporary restraining 

4 order or a preliminary or permanent injunction; 

5 and 

6 ‘‘(B) may issue an injunction requiring 

7 that the State or any person comply with this 

8 section. 

9 ‘‘(4) ENFORCEMENT BY STATES.—Nothing in 

10 this section— 

11 ‘‘(A) prohibits a Participating State from 

12 issuing citations and imposing reasonable fines 

13 and penalties pursuant to applicable State laws 

14 and regulations on any motor carrier, motor pri15 vate carrier, freight forwarder, broker, or leasing 

16 company for failure to— 

17 ‘‘(i) submit documents as required 

18 under subsection (d)(2); or 

19 ‘‘(ii) pay the fees required under sub20 section (f); or 

21 ‘‘(B) authorizes a State to require a motor 

22 carrier, motor private carrier, or freight for23 warder to display as evidence of compliance any 

24 form of identification in excess of those permitted 
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1 under section 14506 of this title on or in a com2 mercial motor vehicle. 

3 ‘‘(j) APPLICATION TO INTRASTATE CARRIERS.—Not4 withstanding any other provision of this section, a State 

5 may elect to apply the provisions of the UCR Agreement 

6 to motor carriers and motor private carriers subject to its 

7 jurisdiction that operate solely in intrastate commerce 

8 within the borders of the State.’’. 

9 SEC. 4266. IDENTIFICATION OF VEHICLES. 

10 Chapter 145 is amended by adding at the end the fol11 lowing: 

12 ‘‘§ 14506. Identification of vehicles 

13 ‘‘(a) RESTRICTION ON REQUIREMENTS.—No State, po14 litical subdivision of a State, interstate agency, or other po15 litical agency of 2 or more States may enact or enforce any 

16 law, rule, regulation standard, or other provision having 

17 the force and effect of law that requires a motor carrier, 

18 motor private carrier, freight forwarder, or leasing com19 pany to display any form of identification on or in a com20 mercial motor vehicle, other than forms of identification re21 quired by the Secretary of Transportation under section 

22 390.21 of title 49, Code of Federal Regulations. 

23 ‘‘(b) EXCEPTION.—Notwithstanding paragraph (a), a 

24 State may continue to require display of credentials that 

25 are required— 
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1 ‘‘(1) under the International Registration Plan 

2 under section 31704 of this title; 

3 ‘‘(2) under the International Fuel Tax Agree4 ment under section 31705 of this title; 

5 ‘‘(3) in connection with Federal requirements for 

6 hazardous materials transportation under section 

7 5103 of this title; or 

8 ‘‘(4) in connection with the Federal vehicle in9 spection standards under section 31136 of this title.’’. 

10 SEC. 4267. USE OF UCR AGREEMENT REVENUES AS MATCH11 ING FUNDS. 

12 Section 31103(a) is amended by inserting ‘‘Amounts 

13 generated by the Unified Carrier Registration Agreement, 

14 under section 14504a of this title and received by a State 

15 and used for motor carrier safety purposes may be included 

16 as part of the State’s share not provided by the United 

17 States.’’ after ‘‘United States Government.’’. 

18 SEC. 4268. CLERICAL AMENDMENTS. 

19 (a) SECTION 13906 CAPTION.—The section caption for 

20 section 13906 is amended by inserting ‘‘motor private 

21 carriers,’’ after ‘‘motor carriers,’’. 

22 (b) TABLE OF CONTENTS.—The chapter analysis for 

23 chapter 139 is amended by striking the item relating to sec24 tion 13906 and inserting the following: 

‘‘13906. Security of motor carriers, motor private carriers, brokers, and freight 

forwarders.’’. 
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1 Subtitle C—Household Goods 

2 Movers 

3 SEC. 4301. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED 

4 STATES CODE. 

5 (a) SHORT TITLE.—This subtitle may be cited as the 

6 ‘‘Household Goods Mover Oversight Enforcement and Re7 form Act of 2004’’. 

8 (b) AMENDMENT OF TITLE 49, UNITED STATES

9 CODE.—Except as otherwise specifically provided, whenever 

10 in this subtitle an amendment is expressed in terms of an 

11 amendment to a section or other provision of law, the ref12 erence shall be considered to be made to a section or other 

13 provision of title 49, United States Code. 

14 SEC. 4302. FINDINGS; SENSE OF CONGRESS. 

15 The Congress finds the following: 

16 (1) There are approximately 1,500,000 interstate 

17 household moves every year. While the vast majority 

18 of these interstate moves are completed successfully, 

19 consumer complaints have been increasing since the 

20 Interstate Commerce Commission was abolished in 

21 1996 and oversight of the household goods industry 

22 was transferred to the Department of Transportation. 

23 (2) While the overwhelming majority of house24 hold goods carriers are honest and operate within the 

25 law, there appears to be a growing criminal element 
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1 that is exploiting a perceived void in Federal and 

2 State enforcement efforts. The growing criminal ele3 ment tends to prey upon consumers. 

4 (3) The movement of an individual’s household 

5 goods is unique and differs from the movement of a 

6 commercial shipment. A consumer may utilize a mov7 ing company once or twice in the consumer’s lifetime 

8 and entrust virtually all of the consumer’s worldly 

9 goods to a mover. 

10 (4) Federal resources are inadequate to properly 

11 police or deter, on a nationwide basis, those movers 

12 who willfully violate Federal regulations governing 

13 the household goods industry and knowingly prey on 

14 consumers who are in a vulnerable position. It is ap15 propriate that a Federal-State partnership be created 

16 to enhance enforcement against fraudulent moving 

17 companies. 

18 SEC. 4303. DEFINITIONS. 

19 In this title, the terms ‘‘carrier’’, ‘‘household goods’’, 

20 ‘‘motor carrier’’, ‘‘Secretary’’, and ‘‘transportation’’ have 

21 the meaning given such terms in section 13102 of title 49, 

22 United States Code. 

23 SEC. 4304. PAYMENT OF RATES. 

24 Section 13707(b) is amended by adding at the end the 

25 following: 
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1 ‘‘(3) SHIPMENTS OF HOUSEHOLD GOODS.— 

2 ‘‘(A) IN GENERAL.—A carrier providing 

3 transportation for a shipment of household goods 

4 shall give up possession of the household goods 

5 transported at the destination upon payment 

6 of— 

7 ‘‘(i) 100 percent of the charges con8 tained in a binding estimate provided by 

9 the carrier; 

10 ‘‘(ii) not more than 110 percent of the 

11 charges contained in a nonbinding estimate 

12 provided by the carrier; or 

13 ‘‘(iii) in the case of a partial delivery 

14 of the shipment, the prorated percentage of 

15 the charges calculated in accordance with 

16 subparagraph (B). 

17 ‘‘(B) CALCULATION OF PRORATED

18 CHARGES.—For purposes of subparagraph 

19 (A)(iii), the prorated percentage of the charges 

20 shall be the percentage of the total charges due to 

21 the carrier as described in clause (i) or (ii) of 

22 subparagraph (A) that is equal to the percentage 

23 of the weight of that portion of the shipment de24 livered to the total weight of the shipment. 
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1 ‘‘(C) POST-CONTRACT SERVICES.—Subpara2 graph (A) does not apply to additional services 

3 requested by a shipper after the contract of serv4 ice is executed that were not included in the esti5 mate. 

6 ‘‘(D) IMPRACTICABLE OPERATIONS.—Sub7 paragraph (A) does apply to impracticable oper8 ations, as defined by the applicable carrier tariff, 

9 if the shipper agrees to pay the charges for such 

10 operations within 30 days after the goods are de11 livered.’’. 

12 SEC. 4305. HOUSEHOLD GOODS CARRIER OPERATIONS. 

13 Section 14104 is amended— 

14 (1) by striking paragraph (1) of subsection (b) 

15 and inserting the following: 

16 ‘‘(1) REQUIREMENT FOR WRITTEN ESTIMATE.—A 

17 motor carrier providing transportation of household 

18 goods subject to jurisdiction under subchapter I of 

19 chapter 135 shall provide to a prospective shipper a 

20 written estimate of all charges related to the transpor21 tation of the household goods, including charges for— 

22 ‘‘(A) packing; 

23 ‘‘(B) unpacking; 

24 ‘‘(C) loading; 

25 ‘‘(D) unloading; and 
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1 ‘‘(E) handling of the shipment from the 

2 point of origin to the final destination (whether 

3 that destination is storage or transit).’’; 

4 (2) by redesignating paragraph (2) of such sub5 section as paragraph (4); and 

6 (3) by inserting after paragraph (1), as amended 

7 by paragraph (1), the following: 

8 ‘‘(2) OTHER INFORMATION.—At the time that a 

9 motor carrier provides the written estimate required 

10 by paragraph (1), the motor carrier shall provide the 

11 shipper a copy of the Department of Transportation 

12 publication FMCSA–ESA–03–005 (or its successor 

13 edition or publication) entitled ‘Ready to Move?’. Be14 fore the execution of a contract for service, a motor 

15 carrier shall provide the shipper a copy of the De16 partment of Transportation publication OCE 100, en17 titled ‘Your Rights and Responsibilities When You 

18 Move’ required by section 375.2 of title 49, Code of 

19 Federal Regulations (or any corresponding similar 

20 regulation). 

21 ‘‘(3) BINDING AND NONBINDING ESTIMATES.— 

22 The written estimate required by paragraph (1) may 

23 be either binding or nonbinding. The written estimate 

24 shall be based on a visual inspection of the household 

25 goods if the household goods are located within a 50- 
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1 mile radius of the location of the carrier’s household 

2 goods agent preparing the estimate. The Secretary 

3 may not prohibit any such carrier from charging a 

4 prospective shipper for providing a written, binding 

5 estimate for the transportation and related services.’’; 

6 (4) by redesignating subsection (c) as subsection 

7 (e); and 

8 (5) by inserting after subsection (b), as amended 

9 by paragraphs (1) and (2), the following: 

10 ‘‘(c) NOTIFICATION OF FINAL CHARGES.—If the final 

11 charges for a shipment of household goods exceed 100 per12 cent of a binding estimate or 110 percent of a nonbinding 

13 estimate, the motor carrier shall provide the shipper an 

14 itemized statement of the charges. The statement shall be 

15 provided to the shipper within 24 hours prior to the deliv16 ery of the shipment unless the shipper waives this require17 ment or the shipper cannot be reached by fax, regular mail, 

18 or electronic mail. Such notification shall— 

19 ‘‘(1) be delivered in writing at the motor car20 rier’s expense; and 

21 ‘‘(2) disclose the requirements of section 

22 13707(b)(3) of this title regarding payment for deliv23 ery of a shipment of household goods. 

24 ‘‘(d) REQUIREMENT FOR INVENTORY.—A motor car25 rier providing transportation of a shipment of household 
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1 goods, as defined in section 13102(10), that is subject to 

2 jurisdiction under subchapter I of chapter 135 of this title 

3 shall, before or at the time of loading the shipment, prepare 

4 a written inventory of all articles tendered and accepted 

5 by the motor carrier for transportation. Such inventory 

6 shall— 

7 ‘‘(1) list or otherwise reasonably identify each 

8 item tendered for transportation; 

9 ‘‘(2) be signed by the shipper and the motor car10 rier, or the agent of the shipper or carrier, at the time 

11 the shipment is loaded and at the time the shipment 

12 is unloaded at the final destination; 

13 ‘‘(3) be attached to, and considered part of, the 

14 bill of lading; and 

15 ‘‘(4) be subject to the same requirements of the 

16 Secretary for record inspection and preservation that 

17 apply to bills of lading.’’. 

18 SEC. 4306. LIABILITY OF CARRIERS UNDER RECEIPTS AND 

19 BILLS OF LADING. 

20 Section 14706(f) is amended— 

21 (1) by resetting the text as a paragraph indented 

22 2 ems from the left margin and inserting ‘‘(1) IN

23 GENERAL.—’’ before ‘‘A carrier’’; and 

24 (2) by adding at the end, the following: 
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1 ‘‘(2) FULL VALUE PROTECTION OBLIGATION.— 

2 Unless the carrier receives a waiver in writing under 

3 paragraph (3), a carrier’s maximum liability for 

4 household goods that are lost, damaged, destroyed, or 

5 otherwise not delivered to the final destination is an 

6 amount equal to the replacement value of such goods, 

7 subject to a maximum amount equal to the declared 

8 value of the shipment, subject to rules issued by the 

9 Surface Transportation Board and applicable tariffs. 

10 ‘‘(3) APPLICATION OF RATES.—The released rates 

11 established by the Board under paragraph (1) (com12 monly known as ‘released rates’) shall not apply to 

13 the transportation of household goods by a carrier un14 less the liability of the carrier for the full value of 

15 such household goods under paragraph (2) is waived 

16 in writing by the shipper.’’. 

17 SEC. 4307. DISPUTE SETTLEMENT FOR SHIPMENTS OF 

18 HOUSEHOLD GOODS. 

19 (a) IN GENERAL.—Section 14708(a) is amended— 

20 (1) by resetting the text as a paragraph indented 

21 2 ems from the left margin and inserting ‘‘(1) RE22 QUIREMENT TO OFFER.—’’ before ‘‘As a condition’’; 

23 and 

24 (2) by striking ‘‘shippers of household goods con25 cerning damage or loss to the household goods trans-
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1 ported.’’ and inserting ‘‘shippers. The carrier may not 

2 require the shipper to agree to use arbitration as a 

3 means to settle such a dispute.’’; and 

4 (3) by inserting at the end, the following: 

5 ‘‘(2) REQUIREMENTS FOR CARRIERS.—If a dis6 pute with a carrier providing transportation of 

7 household goods involves a claim that is— 

8 ‘‘(A) not more than $10,000 and the shipper 

9 requests arbitration, such arbitration shall be 

10 binding on the parties; or 

11 ‘‘(B) for more than $10,000 and the shipper 

12 requests arbitration, such arbitration shall be 

13 binding on the parties only if the carrier agrees 

14 to arbitration.’’. 

15 (b) ARBITRATION REQUIREMENTS.— 

16 (1) IN GENERAL.—Section 14708(b) is amend17 ed— 

18 (A) by striking paragraph (4) and inserting 

19 the following: 

20 ‘‘(4) INDEPENDENCE OF ARBITRATOR.—The Sec21 retary shall establish a system for the certification of 

22 persons authorized to arbitrate or otherwise settle a 

23 dispute between a shipper of household goods and a 

24 carrier. The Secretary shall ensure that each person 

25 so certified is— 
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1 ‘‘(A) independent of the parties to the dis2 pute; 

3 ‘‘(B) capable, as determined under such reg4 ulations as the Secretary may issue, to resolve 

5 such disputes fairly and expeditiously; and 

6 ‘‘(C) authorized and able to obtain from the 

7 shipper or carrier any material and relevant in8 formation to the extent necessary to carry out a 

9 fair and expeditious decisionmaking process.’’; 

10 (B) by striking paragraph (6); and 

11 (C) by redesignating paragraphs (7) and 

12 (8) as paragraphs (6) and (7), respectively. 

13 (2) CONFORMING AMENDMENT.—Section 

14 14708(d)(3)(A) is amended by striking ‘‘(b)(8)’’ and 

15 inserting ‘‘(b)(7)’’. 

16 (c) ATTORNEY’S FEES TO CARRIERS.—Section 

17 14708(e) is further amended by striking ‘‘only if’’ and all 

18 that follows through the period at the end and inserting 

19 ‘‘if— 

20 ‘‘(1) the court proceeding is to enforce a decision 

21 rendered in favor of the carrier through arbitration 

22 under this section and is instituted after the shipper 

23 has a reasonable opportunity to pay any charges re24 quired by such decision; or 
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1 ‘‘(2) the shipper brought such action in bad 

2 faith— 

3 ‘‘(A) after resolution of such dispute through 

4 arbitration under this section; or 

5 ‘‘(B) after institution of an arbitration pro6 ceeding by the shipper to resolve such dispute 

7 under this section but before— 

8 ‘‘(i) the period provided under sub9 section (b)(7) for resolution of such dispute 

10 (including, if applicable, an extension of 

11 such period under such subsection) ends; 

12 and 

13 ‘‘(ii) a decision resolving such dispute 

14 is rendered.’’. 

15 (d) REVIEW AND REPORT ON DISPUTE SETTLEMENT

16 PROGRAMS.— 

17 (1) REVIEW AND REPORT.—Not later than 18 

18 months after the date of enactment of this Act, the 

19 Secretary of Transportation shall complete a review 

20 of the outcomes and the effectiveness of the programs 

21 carried out under title 49, United States Code, to set22 tle disputes between motor carriers and shippers and 

23 submit a report on the review to the Senate Com24 mittee on Commerce, Science, and Transportation 

25 and the House of Representatives Committee on 
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1 Transportation and Infrastructure. The report shall 

2 describe— 

3 (A) the subject of, and amounts at issue is, 

4 the disputes; 

5 (B) patterns in disputes or settlements; 

6 (C) the prevailing party in disputes, if 

7 identifiable; and 

8 (D) any other matters the Secretary con9 siders appropriate. 

10 (2) REQUIREMENT FOR PUBLIC COMMENT.—The 

11 Secretary shall publish notice of the review required 

12 by paragraph (1) and provide an opportunity for the 

13 public to submit comments on the effectiveness of such 

14 programs. Notwithstanding any confidentiality or 

15 non-disclosure provision in a settlement agreement be16 tween a motor carrier and a shipper, it shall not be 

17 a violation of that provision for a motor carrier or 

18 shipper to submit a copy of the settlement agreement, 

19 or to provide information included in the agreement, 

20 to the Secretary for use in evaluating dispute settle21 ment programs under this subsection. Notwith22 standing anything to the contrary in section 552 of 

23 title 5, United States Code, the Secretary may not 

24 post on the Department of Transportation’s electronic 

25 docket system, or make available to any requester in 
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1 paper or electronic format, any information sub2 mitted to the Secretary by a motor carrier or shipper 

3 under the preceding sentence. The Secretary shall use 

4 the settlement agreements or other information sub5 mitted by a motor carrier or shipper solely to evalu6 ate the effectiveness of dispute settlement programs 

7 and shall not include in the report required by this 

8 subsection the names or, or other identifying informa9 tion concerning, motor carriers or shippers that sub10 mitted comments or information under this sub11 section. 

12 SEC. 4308. ENFORCEMENT OF REGULATIONS RELATED TO 

13 TRANSPORTATION OF HOUSEHOLD GOODS. 

14 (a) NONPREEMPTION OF INTRASTATE TRANSPOR15 TATION OF HOUSEHOLD GOODS.—Section 14501(c)(2)(B) 

16 is amended by inserting ‘‘intrastate’’ before ‘‘transpor17 tation’’. 

18 (b) ENFORCEMENT OF FEDERAL LAW WITH RESPECT

19 TO INTERSTATE HOUSEHOLD GOODS CARRIERS.— 

20 (1) IN GENERAL.—Chapter 147 is amended by 

21 adding at the end the following: 
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1 ‘‘§ 14710. Enforcement of Federal laws and regula2 tions with respect to transportation of 

3 household goods 

4 ‘‘(a) ENFORCEMENT BY STATES.—Notwithstanding 

5 any other provision of this title, a State authority may en6 force the consumer protection provisions, as determined by 

7 the Secretary of Transportation, of this title that are related 

8 to the transportation of household goods in interstate com9 merce. Any fine or penalty imposed on a carrier in a pro10 ceeding under this subsection shall, notwithstanding any 

11 provision of law to the contrary, be paid to and retained 

12 by the State. 

13 ‘‘(b) STATE AUTHORITY DEFINED.—The term ‘State 

14 authority’ means an agency of a State that has authority 

15 under the laws of the State to regulate the intrastate move16 ment of household goods. 

17 ‘‘§ 14711. Enforcement by State attorneys general 

18 ‘‘(a) IN GENERAL.—A State, as parens patriae, may 

19 bring a civil action on behalf of its residents in an appro20 priate district court of the United States to enforce the con21 sumer protection provisions, as determined by the Secretary 

22 of Transportation, of this title that are related to the trans23 portation of household goods in interstate commerce, or reg24 ulations or orders of the Secretary or the Board thereunder, 

25 or to impose the civil penalties authorized by this part or 

26 such regulation or order, whenever the attorney general of 
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1 the State has reason to believe that the interests of the resi2 dents of the State have been or are being threatened or ad3 versely affected by a carrier or broker providing transpor4 tation subject to jurisdiction under subchapter I or III of 

5 chapter 135 of this title, or a foreign motor carrier pro6 viding transportation registered under section 13902 of this 

7 title, that is engaged in household goods transportation that 

8 violates this part or a regulation or order of the Secretary 

9 or Board, as applicable, promulgated under this part. 

10 ‘‘(b) NOTICE.—The State shall serve written notice to 

11 the Secretary or the Board, as the case may be, of any civil 

12 action under subsection (a) prior to initiating such civil 

13 action. The notice shall include a copy of the complaint to 

14 be filed to initiate such civil action, except that if it is not 

15 feasible for the State to provide such prior notice, the State 

16 shall provide such notice immediately upon instituting such 

17 civil action. 

18 ‘‘(c) AUTHORITY TO INTERVENE.—Upon receiving the 

19 notice required by subsection (b), the Secretary or Board 

20 may intervene in such civil action and upon intervening— 

21 ‘‘(1) be heard on all matters arising in such civil 

22 action; and 

23 ‘‘(2) file petitions for appeal of a decision in 

24 such civil action. 
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1 ‘‘(d) CONSTRUCTION.—For purposes of bringing any 

2 civil action under subsection (a), nothing in this section 

3 shall prevent the attorney general of a State from exercising 

4 the powers conferred on the attorney general by the laws 

5 of such State to conduct investigations or to administer 

6 oaths or affirmations or to compel the attendance of wit7 nesses or the production of documentary and other evidence. 

8 ‘‘(e) VENUE; SERVICE OF PROCESS.—In a civil action 

9 brought under subsection (a)— 

10 ‘‘(1) the venue shall be a judicial district in 

11 which— 

12 ‘‘(A) the carrier, foreign motor carrier, or 

13 broker operates; 

14 ‘‘(B) the carrier, foreign motor carrier, or 

15 broker was authorized to provide transportation 

16 at the time the complaint arose; or 

17 ‘‘(C) where the defendant in the civil action 

18 is found; 

19 ‘‘(2) process may be served without regard to the 

20 territorial limits of the district or of the State in 

21 which the civil action is instituted; and 

22 ‘‘(3) a person who participated with a carrier or 

23 broker in an alleged violation that is being litigated 

24 in the civil action may be joined in the civil action 

25 without regard to the residence of the person. 
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1 ‘‘(f) ENFORCEMENT OF STATE LAW.—Nothing con2 tained in this section shall prohibit an authorized State of3 ficial from proceeding in State court to enforce a criminal 

4 statute of such State.’’. 

5 (2) CONFORMING AMENDMENT.—The analysis for 

6 chapter 147 is amended by inserting after the item re7 lating to section 14709 the following: 

‘‘14710. Enforcement of Federal laws and regulations with respect to transportation of household goods. 

‘‘14711. Enforcement by State attorneys general.’’. 

8 SEC. 4309. WORKING GROUP FOR DEVELOPMENT OF PRAC9 TICES AND PROCEDURES TO ENHANCE FED10 ERAL-STATE RELATIONS. 

11 (a) IN GENERAL.—Not later than 90 days after the 

12 date of enactment of this Act, the Secretary shall establish 

13 a working group of State attorneys general, State authori14 ties that regulate the movement of household goods, and Fed15 eral and local law enforcement officials for the purpose of 

16 developing practices and procedures to enhance the Federal17 State partnership in enforcement efforts, exchange of infor18 mation, and coordination of enforcement efforts with respect 

19 to interstate transportation of household goods and making 

20 legislative and regulatory recommendations to the Secretary 

21 concerning such enforcement efforts. 

22 (b) CONSULTATION.—In carrying out subsection (a), 

23 the working group shall consult with industries involved in 
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1 the transportation of household goods, the public, and other 

2 interested parties. 

3 SEC. 4310. CONSUMER HANDBOOK ON DOT WEBSITE. 

4 Within 6 months after the date of enactment of this 

5 Act, the Secretary shall take such action as may be nec6 essary to ensure that the Department of Transportation 

7 publication OCE 100, entitled ‘‘Your Rights and Respon8 sibilities When You Move’’ required by section 375.2 of title 

9 49, Code of Federal Regulations (or any corresponding 

10 similar regulation), is prominently displayed, and avail11 able in language that is readily understandable by the gen12 eral public, on the website of the Department of Transpor13 tation. 

14 SEC. 4311. INFORMATION ABOUT HOUSEHOLD GOODS 

15 TRANSPORTATION ON CARRIERS’ WEBSITES. 

16 Not later than 1 year after the date of enactment of 

17 this Act, the Secretary shall modify the regulations con18 tained in part 375 of title 49, Code of Federal Regulations, 

19 to require a motor carrier or broker that is subject to such 

20 regulations and that establishes and maintains a website 

21 to prominently display on the website— 

22 (1) the number assigned to the motor carrier or 

23 broker by the Department of Transportation; 

24 (2) the OCE 100 publication referred to in sec25 tion 4310; and 
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1 (3) in the case of a broker, a list of all motor 

2 carriers providing transportation of household goods 

3 used by the broker and a statement that the broker is 

4 not a motor carrier providing transportation of 

5 household goods. 

6 SEC. 4312. CONSUMER COMPLAINTS. 

7 (a) REQUIREMENT FOR DATABASE.—Subchapter II of 

8 chapter 141 is amended by adding at the end the following: 

9 ‘‘§ 14124. Consumer complaints 

10 ‘‘(a) ESTABLISHMENT OF SYSTEM AND DATABASE.— 

11 The Secretary of Transportation shall— 

12 ‘‘(1) establish a system to— 

13 ‘‘(A) file and log a complaint made by a 

14 shipper that relates to motor carrier transpor15 tation of household goods; and 

16 ‘‘(B) to solicit information gathered by a 

17 State regarding the number and type of com18 plaints involving the interstate transportation of 

19 household goods; 

20 ‘‘(2) establish a database of such complaints; and 

21 ‘‘(3) develop a procedure— 

22 ‘‘(A) to provide the public access to the 

23 database; 

24 ‘‘(B) to forward a complaint, including the 

25 motor carrier bill of lading number related to the 
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1 complaint to a motor carrier named in such 

2 complaint and to an appropriate State authority 

3 (as defined in section 14710(c) in the State in 

4 which the complainant resides; and 

5 ‘‘(C) to permit a motor carrier to challenge 

6 information in the database. 

7 ‘‘(b) REQUIREMENT FOR ANNUAL REPORTS.—The Sec8 retary shall issue regulations requiring a motor carrier that 

9 provides transportation of household goods to submit to the 

10 Secretary, not later than March 31st of each year, an an11 nual report covering the 12-month period ending on the pre12 ceding March 31st that includes— 

13 ‘‘(1) the number of interstate shipments of house14 hold goods that the motor carrier received from ship15 pers and that were delivered to a final destination 

16 during the preceding calendar year; 

17 ‘‘(2) the number and general category of com18 plaints lodged against the motor carrier during the 

19 preceding calendar year; 

20 ‘‘(3) the number of shipments described in para21 graph (1) that resulted in the filing of a claim 

22 against the motor carrier for loss or damage to the 

23 shipment for an amount in excess of $500 during the 

24 preceding calendar year; and 
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1 ‘‘(4) the number of shipments described in para2 graph (3) that were— 

3 ‘‘(A) resolved during the preceding calendar 

4 year; or 

5 ‘‘(B) pending on the last day of the pre6 ceding calendar year. 

7 ‘‘(c) SUMMARY TO CONGRESS.—The Secretary shall 

8 transmit a summary each year of the complaints filed and 

9 logged under subsection (a) for the preceding calendar year 

10 to the Senate Committee on Commerce, Science, and Trans11 portation and the House of Representatives Committee on 

12 Transportation and Infrastructure.’’. 

13 (b) CONFORMING AMENDMENT.—The analysis for 

14 chapter 141 is amended by inserting after the item relating 

15 to section 14123 the following: 

‘‘14124. Consumer complaints.’’. 

16 SEC. 4313. REVIEW OF LIABILITY OF CARRIERS. 

17 (a) REVIEW.—Not later than 1 year after the date of 

18 enactment of this Act, the Surface Transportation Board 

19 shall complete a review of the current Federal regulations 

20 regarding the level of liability protection provided by motor 

21 carriers that provide transportation of household goods and 

22 revise such regulations, if necessary, to provide enhanced 

23 protection in the case of loss or damage. 

24 (b) DETERMINATIONS.—The review required by sub25 section (a) shall include a determination of— 
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1 (1) whether the current regulations provide ade2 quate protection; 

3 (2) the benefits of purchase by a shipper of in4 surance to supplement the carrier’s limitations on li5 ability; 

6 (3) whether there are abuses of the current regu7 lations that leave the shipper unprotected in the event 

8 of loss and damage to a shipment of household goods; 

9 and 

10 (4) whether the section 14706 of title 49, United 

11 States Code, should be modified or repealed. 

12 SEC. 4314. CIVIL PENALTIES RELATING TO HOUSEHOLD 

13 GOODS BROKERS. 

14 Section 14901(d) is amended— 

15 (1) by resetting the text as a paragraph indented 

16 2 ems from the left margin and inserting ‘‘(1) IN

17 GENERAL.—’’ before ‘‘If a carrier’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(2) ESTIMATE OF BROKER WITHOUT CARRIER

20 AGREEMENT.—If a broker for transportation of house21 hold goods subject to jurisdiction under subchapter I 

22 of chapter 135 of this title makes an estimate of the 

23 cost of transporting any such goods before entering 

24 into an agreement with a carrier to provide transpor25 tation of household goods subject to such jurisdiction, 
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1 the broker is liable to the United States for a civil 

2 penalty of not less than $10,000 for each violation. 

3 ‘‘(3) UNAUTHORIZED TRANSPORTATION.—If a 

4 person provides transportation of household goods 

5 subject to jurisdiction under subchapter I of chapter 

6 135 this title or provides broker services for such 

7 transportation without being registered under chapter 

8 139 of this title to provide such transportation or 

9 services as a motor carrier or broker, as the case may 

10 be, such person is liable to the United States for a 

11 civil penalty of not less than $25,000 for each viola12 tion.’’. 

13 SEC. 4315. CIVIL AND CRIMINAL PENALTY FOR FAILING TO 

14 GIVE UP POSSESSION OF HOUSEHOLD 

15 GOODS. 

16 (a) IN GENERAL.—Chapter 149 is amended by adding 

17 at the end the following: 

18 ‘‘§ 14915. Penalties for failure to give up possession of 

19 household goods 

20 ‘‘(a) CIVIL PENALTY.—Whoever is found to have failed 

21 to give up possession of household goods is liable to the 

22 United States for a civil penalty of not less than $10,000. 

23 Each day a carrier is found to have failed to give up posses24 sion of household goods may constitute a separate violation. 

25 If such person is a carrier or broker, the Secretary may 
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1 suspend for a period of not less than 6 months the registra2 tion of such carrier or broker under chapter 139 of this title. 

3 ‘‘(b) CRIMINAL PENALTY.—Whoever has been convicted 

4 of having failed to give up possession of household goods 

5 shall be fined under title 18 or imprisoned for not more 

6 than 2 years, or both. 

7 ‘‘(c) FAILURE TO GIVE UP POSSESSION OF HOUSE8 HOLD GOODS DEFINED.—For purposes of this section, the 

9 term ‘failed to give up possession of household goods’ means 

10 the knowing and willful failure of a motor carrier to deliver 

11 to, or unload at, the destination of a shipment of household 

12 goods that is subject to jurisdiction under subchapter I or 

13 III of chapter 135 of this title, for which charges have been 

14 estimated by the motor carrier providing transportation of 

15 such goods, and for which the shipper has tendered a pay16 ment described in clause (i), (ii), or (iii) of section 

17 13707(b)(3)(A) of this title.’’. 

18 (b) CONFORMING AMENDMENT.—The analysis for such 

19 chapter is amended by adding at the end the following: 

‘‘14915. Penalties for failure to give up possession of household goods.’’. 

20 SEC. 4316. PROGRESS REPORT. 

21 Not later than 1 year after the date of enactment of 

22 this Act, the Secretary shall transmit to Congress a report 

23 on the progress being made in implementing the provisions 

24 of this title. 
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1 SEC. 4317. ADDITIONAL REGISTRATION REQUIREMENTS 

2 FOR MOTOR CARRIERS OF HOUSEHOLD 

3 GOODS. 

4 Section 13902(a) is amended— 

5 (1) by striking paragraphs (2) and (3); 

6 (2) by redesignating paragraph (4) as para7 graph (5) and inserting after paragraph (1) the fol8 lowing: 

9 ‘‘(2) ADDITIONAL REGISTRATION REQUIREMENTS FOR

10 HOUSEHOLD GOODS TRANSPORTATION.—Notwithstanding 

11 paragraph (1), the Secretary may register a person to pro12 vide transportation of household goods (as defined in section 

13 13102(10) of this title) only after that person— 

14 ‘‘(A) provides evidence of participation in 

15 an arbitration program and provides a copy of 

16 the notice of that program as required by section 

17 14708(b)(2) of this title; 

18 ‘‘(B) identifies its tariff and provides a 

19 copy of the notice of the availability of that tariff 

20 for inspection as required by section 13702(c) of 

21 this title; 

22 ‘‘(C) provides evidence that it has access to, 

23 has read, is familiar with, and will observe all 

24 laws relating to consumer protection, estimating, 

25 consumers’ rights and responsibilities, and op-
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1 tions for limitations of liability for loss and 

2 damage; and 

3 ‘‘(D) discloses any relationship involving 

4 common stock, common ownership, common 

5 management, or common familial relationships 

6 between that person and any other motor carrier, 

7 freight forwarder, or broker of household goods 

8 within the past 3 years. 

9 ‘‘(3) CONSIDERATION OF EVIDENCE; FINDINGS.— 

10 The Secretary shall consider, and, to the extent appli11 cable, make findings on any evidence demonstrating 

12 that the registrant is unable to comply with any ap13 plicable requirement of paragraph (1) or, in the case 

14 of a registrant to which paragraph (2) applies, para15 graph (1) or (2). 

16 ‘‘(4) WITHHOLDING.—If the Secretary deter17 mines that a registrant under this section does not 

18 meet, or is not able to meet, any requirement of para19 graph (1) or, in the case of a registrant to which 

20 paragraph (2) applies, paragraph (1) or (2), the Sec21 retary shall withhold registration.’’; and 

22 (3) by adding at the end of paragraph (5), as re23 designated, ‘‘In the case of a registration for the 

24 transportation of household goods (as defined in sec25 tion 13102(10 of this title), the Secretary may also 
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1 hear a complaint on the ground that the registrant 

2 fails or will fail to comply with the requirements of 

3 paragraph (2) of this subsection.’’. 

4 Subtitle D—Hazardous Materials 

5 Transportation Safety and Security 

6 SEC. 4401. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘Hazardous Material 

8 Transportation Safety and Security Reauthorization Act of 

9 2004’’. 

10 SEC. 4402. AMENDMENT OF TITLE 49, UNITED STATES CODE. 

11 Except as otherwise expressly provided, whenever in 

12 this subtitle an amendment or repeal is expressed in terms 

13 of an amendment to, or repeal of, a section or other provi14 sion, the reference shall be considered to be made to a section 

15 or other provision of title 49, United States Code. 

16 PART I—GENERAL AUTHORITIES ON 

17 TRANSPORTATION OF HAZARDOUS MATERIALS 

18 SEC. 4421. PURPOSE. 

19 The text of section 5101 is amended to read as follows: 

20 ‘‘The purpose of this chapter is to protect against the 

21 risks to life, property, and the environment that are inher22 ent in the transportation of hazardous material in intra23 state, interstate, and foreign commerce.’’. 

24 SEC. 4422. DEFINITIONS. 

25 Section 5102 is amended as follows: 
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1 (1) COMMERCE.—Paragraph (1) is amended— 

2 (A) by striking ‘‘or’’ after the semicolon in 

3 subparagraph (A); 

4 (B) by striking the ‘‘State.’’ in subpara5 graph (B) and inserting ‘‘State; or’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(C) on a United States-registered air8 craft.’’. 

9 (2) HAZMAT EMPLOYEE.—Paragraph (3) is 

10 amended to read as follows: 

11 ‘‘(3) ‘hazmat employee’ means an individual— 

12 ‘‘(A) who— 

13 ‘‘(i) is employed or used by a hazmat 

14 employer; or 

15 ‘‘(ii) is self-employed, including an 

16 owner-operator of a motor vehicle, vessel, or 

17 aircraft, transporting hazardous material 

18 in commerce; and 

19 ‘‘(B) who performs a function regulated by 

20 the Secretary under section 5103(b)(1) of this 

21 title.’’. 

22 (3) HAZMAT EMPLOYER.—Paragraph (4) is 

23 amended to read as follows: 

24 ‘‘(4) ‘hazmat employer’ means a person— 

25 ‘‘(A) who— 
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1 ‘‘(i) employs or uses at least 1 hazmat 

2 employee; or 

3 ‘‘(ii) is self-employed, including an 

4 owner-operator of a motor vehicle, vessel, or 

5 aircraft, transporting hazardous material 

6 in commerce; and 

7 ‘‘(B) who performs, or employs or uses at 

8 least 1 hazmat employee to perform, a function 

9 regulated by the Secretary under section 

10 5103(b)(1) of this title.’’. 

11 (4) IMMINENT HAZARD.—Paragraph (5) is 

12 amended by inserting ‘‘relating to hazardous mate13 rial’’ after ‘‘of a condition’’. 

14 (5) MOTOR CARRIER.—Paragraph (7) is amend15 ed to read as follows: 

16 ‘‘(7) ‘motor carrier’— 

17 ‘‘(A) means a motor carrier, motor private 

18 carrier, and freight forwarder as those terms are 

19 defined in section 13102 of this title; but 

20 ‘‘(B) does not include a freight forwarder, 

21 as so defined, if the freight forwarder is not per22 forming a function relating to highway transpor23 tation.’’. 

24 (6) NATIONAL RESPONSE TEAM.—Paragraph (8) 

25 is amended— 
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1 (A) by striking ‘‘national response team’’ 

2 both places it appears and inserting ‘‘National 

3 Response Team’’; and 

4 (B) by striking ‘‘national contingency 

5 plan’’ and inserting ‘‘National Contingency 

6 Plan’’. 

7 (7) PERSON.—Paragraph (9)(A) is amended by 

8 striking ‘‘offering’’ and all that follows and inserting 

9 ‘‘that— 

10 ‘‘(i) offers hazardous material for 

11 transportation in commerce; 

12 ‘‘(ii) transports hazardous material to 

13 further a commercial enterprise; or 

14 ‘‘(iii) manufactures, designs, inspects, 

15 tests, reconditions, marks, or repairs a 

16 packaging or packaging component that is 

17 represented as qualified for use in trans18 porting hazardous material in commerce; 

19 but’’. 

20 (8) SECRETARY OF TRANSPORTATION.—Section 

21 5101 is further amended— 

22 (A) by redesignating paragraphs (11), (12), 

23 and (13), as paragraphs (12), (13), and (14), re24 spectively; and 
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1 (B) by inserting after paragraph (10) the 

2 following: 

3 ‘‘(11) ‘Secretary’ means the Secretary of Trans4 portation except as otherwise provided.’’. 

5 SEC. 4423. GENERAL REGULATORY AUTHORITY. 

6 (a) REFERENCE TO SECRETARY OF TRANSPOR7 TATION.—Section 5103(a) is amended by striking ‘‘of 

8 Transportation’’. 

9 (b) DESIGNATING MATERIAL AS HAZARDOUS.—Sec10 tion 5103(a) is further amended— 

11 (1) by striking ‘‘etiologic agent’’ and all that fol12 lows through ‘‘corrosive material,’’ and inserting ‘‘in13 fectious substance, flammable or combustible liquid, 

14 solid, or gas, toxic, oxidizing, or corrosive material,’’; 

15 and 

16 (2) by striking ‘‘decides’’ and inserting ‘‘deter17 mines’’. 

18 (c) REGULATIONS FOR SAFE TRANSPORTATION.—Sec19 tion 5103(b)(1)(A) is amended to read as follows: 

20 ‘‘(A) apply to a person who— 

21 ‘‘(i) transports hazardous material in 

22 commerce; 

23 ‘‘(ii) causes hazardous material to be 

24 transported in commerce; 
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1 ‘‘(iii) manufactures, designs, inspects, 

2 tests, reconditions, marks, or repairs a 

3 packaging or packaging component that is 

4 represented as qualified for use in trans5 porting hazardous material in commerce; 

6 ‘‘(iv) prepares or accepts hazardous 

7 material for transportation in commerce; 

8 ‘‘(v) is responsible for the safety of 

9 transporting hazardous material in com10 merce; 

11 ‘‘(vi) certifies compliance with any re12 quirement under this chapter; 

13 ‘‘(vii) misrepresents whether such per14 son is engaged in any activity under clause 

15 (i) through (vi) of this subparagraph; or 

16 ‘‘(viii) performs any other act or func17 tion relating to the transportation of haz18 ardous material in commerce; and’’. 

19 (d) TECHNICAL AMENDMENT REGARDING CONSULTA20 TION.—Section 5103 is amended— 

21 (1) by striking subsection (b)(1)(C); and 

22 (2) by adding at the end the following: 

23 ‘‘(c) CONSULTATION.—When prescribing a security 

24 regulation or issuing a security order that affects the safety 

25 of the transportation of hazardous material, the Secretary 
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1 of Homeland Security shall consult with the Secretary of 

2 Transportation.’’. 

3 SEC. 4424. LIMITATION ON ISSUANCE OF HAZMAT LI4 CENSES. 

5 (a) REFERENCE TO SECRETARY OF TRANSPOR6 TATION.—Section 5103a is amended by striking ‘‘of Trans7 portation’’ each place it appears in subsections (a)(1), 

8 (c)(1)(B), and (d) and inserting ‘‘of Homeland Security’’. 

9 (b) COVERED HAZARDOUS MATERIALS.—Section 

10 5103a(b) is amended by striking ‘‘with respect to—’’ and 

11 all that follows and inserting ‘‘with respect to any material 

12 defined as hazardous material by the Secretary for which 

13 the Secretary requires placarding of a commercial motor 

14 vehicle transporting that material in commerce.’’. 

15 (c) RECOMMENDATIONS ON CHEMICAL OR BIOLOGICAL

16 MATERIALS.—Section 5103a is further amended— 

17 (1) by redesignating subsections (c), (d), and (e) 

18 as subsections (d), (e), and (f), respectively; and 

19 (2) by inserting after subsection (b) the fol20 lowing: 

21 ‘‘(c) RECOMMENDATIONS ON CHEMICAL AND BIOLOGI22 CAL MATERIALS.—The Secretary of Health and Human 

23 Services shall recommend to the Secretary any chemical or 

24 biological material or agent for regulation as a hazardous 

25 material under section 5103(a) of this title if the Secretary 
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1 of Health and Human Services determines that such mate2 rial or agent is a threat to the national security of the 

3 United States.’’. 

4 (d) CONFORMING AMENDMENT.—Section 5103a(a)(1) 

5 is amended by striking ‘‘subsection (c)(1)(B),’’ and insert6 ing ‘‘subsection (d)(1)(B),’’. 

7 SEC. 4425. REPRESENTATION AND TAMPERING. 

8 (a) REPRESENTATION.—Section 5104(a) is amend9 ed— 

10 (1) by striking ‘‘a container,’’ and all that fol11 lows through ‘‘packaging) for’’ and inserting ‘‘a pack12 age, component of a package, or packaging for’’; and 

13 (2) by striking ‘‘the container’’ and all that fol14 lows through ‘‘packaging) meets’’ and inserting ‘‘the 

15 package, component of a package, or packaging 

16 meets’’. 

17 (b) TAMPERING.—Section 5104(b) is amended— 

18 (1) by inserting ‘‘, without authorization from 

19 the owner or custodian,’’ after ‘‘may not’’; 

20 (2) by striking ‘‘unlawfully’’; and 

21 (3) by inserting ‘‘component of a package, or 

22 packaging,’’ after ‘‘package,’’ in paragraph (2). 
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1 SEC. 4426. TRANSPORTING CERTAIN HIGHLY RADIOACTIVE 

2 MATERIAL. 

3 (a) REPEAL OF ROUTES AND MODES STUDY.—Section 

4 5105 is amended by striking subsection (d). 

5 (b) REPEAL OF REQUIREMENT FOR INSPECTIONS OF

6 CERTAIN MOTOR VEHICLES.—Section 5105 is amended by 

7 striking subsection (e). 

8 SEC. 4427. HAZMAT EMPLOYEE TRAINING REQUIREMENTS 

9 AND GRANTS. 

10 (a) REFERENCE TO SECRETARY OF TRANSPOR11 TATION.—Section 5107 is amended by striking ‘‘of Trans12 portation’’ each place it appears in subsections (a), (b), (c) 

13 (other than in paragraph (1)), (d), and (f). 

14 (b) TRAINING GRANTS.—Section 5107(e) is amended— 

15 (1) by striking ‘‘section 5127(c)(3)’’ and insert16 ing ‘‘section 5128(b)(1) of this title’’; 

17 (2) by inserting ‘‘and, to the extent determined 

18 appropriate by the Secretary, grants for such instruc19 tors to train hazmat employees’’ after ‘‘employees’’ in 

20 the first sentence thereof. 

21 SEC. 4428. REGISTRATION. 

22 (a) REFERENCE TO SECRETARY OF TRANSPOR23 TATION.—Section 5108 is amended by striking ‘‘of Trans24 portation’’ each place it appears in subsections (a), (b) 

25 (other than following ‘‘Department’’), (d), (e), (f), (g), (h), 

26 and (i). 
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1 (b) PERSONS REQUIRED TO FILE.— 

2 (1) REQUIREMENT TO FILE.—Section 

3 5108(a)(1)(B) is amended by striking ‘‘class A or B 

4 explosive’’ and inserting ‘‘Division 1.1, 1.2, or 1.3 ex5 plosive material’’. 

6 (2) AUTHORITY TO REQUIRE TO FILE.—Section 

7 5108(a)(2)(B) is amended to read as follows: 

8 ‘‘(B) a person manufacturing, designing, in9 specting, testing, reconditioning, marking, or repair10 ing a package or packaging component that is rep11 resented as qualified for use in transporting haz12 ardous material in commerce.’’. 

13 (3) NO TRANSPORTATION WITHOUT FILING.— 

14 Section 5108(a)(3) is amended by striking ‘‘fab15 ricate,’’ and all that follows through ‘‘package or’’ 

16 and inserting ‘‘design, inspect, test, recondition, 

17 mark, or repair a package, packaging component, 

18 or’’. 

19 (c) FORM AND CONTENT OF FILINGS.—Section 

20 5108(b)(1)(C) by striking ‘‘the activity.’’ and inserting 

21 ‘‘any of the activities.’’. 

22 (d) FILING.—Section 5108(c) is amended to read as 

23 follows: 

24 ‘‘(c) FILING.—Each person required to file a registra25 tion statement under subsection (a) of this section shall file 
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1 the statement in accordance with regulations prescribed by 

2 the Secretary.’’. 

3 (e) FEES.—Section 5108(g)(1) is amended by striking 

4 ‘‘may establish,’’ and inserting ‘‘shall establish,’’. 

5 (f) RELATIONSHIP TO OTHER LAWS.—Section 

6 5108(i)(2)(B) is amended by inserting ‘‘an Indian tribe,’’ 

7 after ‘‘subdivision of a State,’’. 

8 (g) REGISTRATION AND ANNUAL FEES.— 

9 (1) REDUCTION IN CAP.—Section 5108(g)(2)(A) 

10 is amended by striking ‘‘$5,000’’ and inserting 

11 ‘‘$2,000’’. 

12 (2) RULEMAKING.—Any rule, regulation, or 

13 order issued by the Secretary of Transportation under 

14 which the assessment, payment, or collection of fees 

15 under section 5108(g) of title 49, United States Code, 

16 was suspended or terminated before the date of enact17 ment of this Act is declared null and void effective 30 

18 days after such date of enactment. Beginning on the 

19 31st day after such date of enactment, the fee schedule 

20 established by the Secretary and set forth at 65 Fed21 eral Register 7297 (as modified by the rule set forth 

22 at 67 Federal Register 58343) shall take effect and 

23 apply until such time as it may be modified by a 

24 rulemaking proceeding. 
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1 (3) PLANNING AND TRAINING GRANTS.—Notwith2 standing any other provision of law to the contrary, 

3 including any limitation on the amount of grants au4 thorized by section 5116 of title 49, United States 

5 Code, not contained in that section, the Secretary 

6 shall make grants under that section from the account 

7 established under section 5116(i) to reduce the balance 

8 in that account over the 6 fiscal year period begin9 ning with fiscal year 2004, but in no fiscal year shall 

10 the grants distributed exceed the level authorized by 

11 section 5116 of title 49, United States Code. 

12 SEC. 4429. SHIPPING PAPERS AND DISCLOSURE. 

13 (a) REFERENCE TO SECRETARY OF TRANSPOR14 TATION.—Section 5110(a) is amended by striking ‘‘of 

15 Transportation’’. 

16 (b) DISCLOSURE CONSIDERATIONS AND REQUIRE17 MENTS.—Section 5110 is amended— 

18 (1) by striking ‘‘under subsection (b) of this sec19 tion.’’ in subsection (a) and inserting ‘‘in regula20 tions.’’; 

21 (2) by striking subsection (b); and 

22 (3) by redesignating subsections (c), (d), and (e) 

23 as subsections (b), (c), and (d), respectively. 

24 (c) RETENTION OF PAPERS.—The first sentence of sec25 tion 5110(d), as redesignated by subsection (b)(3) of this 
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1 section, is amended to read as follows: ‘‘The person who pro2 vides the shipping paper, and the carrier required to keep 

3 it, under this section shall retain the paper, or an electronic 

4 format of it, for a period of 3 years after the date the ship5 ping paper is provided to the carrier, with the paper and 

6 format to be accessible through their respective principal 

7 places of business.’’. 

8 SEC. 4430. RAIL TANK CARS. 

9 (a) REPEAL OF REQUIREMENTS.—Section 5111 is re10 pealed. 

11 (b) CLERICAL AMENDMENT.—The chapter analysis for 

12 chapter 51 is amended by striking the item relating to sec13 tion 5111. 

14 SEC. 4431. HIGHWAY ROUTING OF HAZARDOUS MATERIAL. 

15 The second sentence of section 5112(a)(1) is amended 

16 by striking ‘‘However, the Secretary of Transportation’’ 

17 and inserting ‘‘The Secretary’’. 

18 SEC. 4432. UNSATISFACTORY SAFETY RATINGS. 

19 (a) IN GENERAL.—The text of section 5113 is amended 

20 to read as follows: 

21 ‘‘A violation of section 31144(c)(3) of this title shall 

22 be considered a violation of this chapter, and shall be subject 

23 to the penalties in sections 5123 and 5124 of this title.’’. 

24 (b) CONFORMING AMENDMENTS.—The first subsection 

25 (c) of section 31144 is amended— 
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1 (1) by striking ‘‘sections 521(b)(5)(A) and 5113’’ 

2 in paragraph (1) and inserting ‘‘section 521(b)(5)(A) 

3 of this title’’; and 

4 (2) by adding at the end of paragraph (3) ‘‘A 

5 violation of this paragraph by an owner or operator 

6 transporting hazardous material shall be considered a 

7 violation of chapter 51 of this title, and shall be sub8 ject to the penalties in sections 5123 and 5124 of this 

9 title.’’. 

10 SEC. 4433. AIR TRANSPORTATION OF IONIZING RADIATION 

11 MATERIAL. 

12 Section 5114(b) is amended by striking ‘‘of Transpor13 tation’’. 

14 SEC. 4434. TRAINING CURRICULUM FOR THE PUBLIC SEC15 TOR. 

16 (a) IN GENERAL.—Section 5115(a) is amended to read 

17 as follows: 

18 ‘‘(a) IN GENERAL.—In coordination with the Director 

19 of the Federal Emergency Management Agency, the Chair20 man of the Nuclear Regulatory Commission, the Adminis21 trator of the Environmental Protection Agency, the Secre22 taries of Labor, Energy, and Health and Human Services, 

23 and the Director of the National Institute of Environmental 

24 Health Sciences, and using existing coordinating mecha25 nisms of the National Response Team and, for radioactive 
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1 material, the Federal Radiological Preparedness Coordi2 nating Committee, the Secretary shall maintain a current 

3 curriculum of lists of courses necessary to train public sec4 tor emergency response and preparedness teams in matters 

5 relating to the transportation of hazardous material.’’. 

6 (b) REQUIREMENTS.—Section 5115(b) is amended— 

7 (1) by striking ‘‘developed’’ in the matter pre8 ceding paragraph (1) and inserting ‘‘maintained’’; 

9 and 

10 (2) by striking ‘‘under other United States Gov11 ernment grant programs’’ in paragraph (1)(C) and 

12 all that follows and inserting ‘‘with Federal assist13 ance; and’’. 

14 (c) TRAINING ON COMPLIANCE WITH LEGAL REQUIRE15 MENTS.—Section 5115(c)(3) is amended by striking ‘‘Asso16 ciation.’’ and inserting ‘‘Association or by any other vol17 untary organization establishing consensus-based standards 

18 that the Secretary considers appropriate.’’. 

19 (d) DISTRIBUTION AND PUBLICATION.—Section 

20 5115(d) is amended— 

21 (1) by striking ‘‘national response team—’’ and 

22 inserting ‘‘National Response Team—’’; and 

23 (2) by striking ‘‘publish a list’’ in paragraph (2) 

24 and all that follows and inserting ‘‘publish and dis-
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1 tribute the list of courses maintained under this sec2 tion, and of any programs utilizing such courses.’’. 

3 SEC. 4435. PLANNING AND TRAINING GRANTS; EMERGENCY 

4 PREPAREDNESS FUND. 

5 (a) REFERENCE TO SECRETARY OF TRANSPOR6 TATION.—Section 5116 is amended by striking ‘‘of Trans7 portation’’ each place it appears in subsections (a), (b), (c), 

8 (d), (g), and (i). 

9 (b) GOVERNMENT SHARE OF COSTS.—Section 5116(e) 

10 is amended by striking the second sentence. 

11 (c) MONITORING AND TECHNICAL ASSISTANCE.—Sec12 tion 5116(f) is amended by striking ‘‘national response 

13 team’’ and inserting ‘‘National Response Team’’. 

14 (d) DELEGATION OF AUTHORITY.—Section 5116(g) is 

15 amended by striking ‘‘Government grant programs’’ and 

16 inserting ‘‘Federal financial assistance programs’’. 

17 (e) EMERGENCY PREPAREDNESS FUND.— 

18 (1) NAME OF FUND.—Section 5116(i) is amend19 ed by inserting after ‘‘an account’’ the following: ‘‘(to 

20 be known as the ‘Emergency Preparedness Fund’)’’. 

21 (2) PUBLICATION OF EMERGENCY RESPONSE

22 GUIDE.—Section 5116(i) is further amended— 

23 (A) by striking ‘‘collects under section 

24 5108(g)(2)(A) of this title and’’; 
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1 (B) by striking ‘‘and’’ after the semicolon in 

2 paragraph (2); 

3 (C) by redesignating paragraph (3) as 

4 paragraph (4); and 

5 (D) by inserting after paragraph (2) the fol6 lowing: 

7 ‘‘(3) to publish and distribute an emergency re8 sponse guide; and’’. 

9 (3) CONFORMING AMENDMENT.—Section 

10 5108(g)(2)(C) is amended by striking ‘‘the account the 

11 Secretary of the Treasury establishes’’ and inserting 

12 ‘‘the Emergency Response Fund established’’. 

13 (f) REPORTS.—Section 5116(k) is amended— 

14 (1) by striking the first sentence and inserting 

15 ‘‘The Secretary shall make available to the public an16 nually information on the allocation and uses of 

17 planning grants under subsection (a), training grants 

18 under subsection (b), and grants under subsection (j) 

19 of this section and under section 5107 of this title.’’; 

20 and 

21 (2) by striking ‘‘Such report’’ in the second sen22 tence and inserting ‘‘The information’’. 

23 SEC. 4436. SPECIAL PERMITS AND EXCLUSIONS. 

24 (a) SPECIAL PERMITS AND EXCLUSIONS.— 
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1 (1) IN GENERAL.—Section 5117(a)(1) is amend2 ed by striking ‘‘the Secretary of Transportation may 

3 issue’’ and all that follows through ‘‘in a way’’ and 

4 inserting ‘‘the Secretary may issue, modify, or termi5 nate a special permit authorizing variances from this 

6 chapter, or a regulation prescribed under section 

7 5103(b), 5104, 5110, or 5112 of this title, to a person 

8 performing a function regulated by the Secretary 

9 under section 5103(b)(1) of this title in a way’’. 

10 (2) DURATION.—Section 5117(a)(2) is amended 

11 to read as follows: 

12 ‘‘(2) A special permit under this subsection— 

13 ‘‘(A) shall be effective when first issued for 

14 not more than 2 years; and 

15 ‘‘(B) may be renewed for successive periods 

16 of not more than 4 years each.’’. 

17 (b) REFERENCES TO SPECIAL PERMITS.—Section 

18 5117 is further amended— 

19 (1) by striking ‘‘an exemption’’ each place it ap20 pears and inserting ‘‘a special permit’’; and 

21 (2) by striking ‘‘the exemption’’ each place it ap22 pears and inserting ‘‘the special permit’’. 

23 (c) CONFORMING AND CLERICAL AMENDMENTS.— 

24 (1) CONFORMING AMENDMENT.—The heading of 

25 section 5117 is amended to read as follows: 
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1 ‘‘§ 5117. Special permits and exclusions’’

2 (2) CLERICAL AMENDMENT.—The chapter anal3 ysis for chapter 51 is amended by striking the item 

4 relating to section 5117 and inserting the following: 

‘‘5117. Special permits and exclusions.’’. 

5 (d) REPEAL OF SECTION 5118.— 

6 (1) Section 5118 is repealed. 

7 (2) The chapter analysis for chapter 51 is 

8 amended by striking the item relating to section 5118 

9 and inserting the following: 

‘‘5118. Repealed.’’. 

10 SEC. 4437. UNIFORM FORMS AND PROCEDURES. 

11 The text of section 5119 is amended to read as follows: 

12 ‘‘(a) IN GENERAL.—The Secretary may prescribe regu13 lations to establish uniform forms and regulations for 

14 States on the following: 

15 ‘‘(1) To register and issue permits to persons 

16 that transport or cause to be transported hazardous 

17 material by motor vehicles in a State. 

18 ‘‘(2) To permit the transportation of hazardous 

19 material in a State. 

20 ‘‘(b) UNIFORMITY IN FORMS AND PROCEDURES.—In 

21 prescribing regulations under subsection (a) of this section, 

22 the Secretary shall develop procedures to eliminate discrep23 ancies among the States in carrying out the activities cov24 ered by the regulations. 
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1 ‘‘(c) LIMITATION.—The regulations prescribed under 

2 subsection (a) of this section may not define or limit the 

3 amount of any fees imposed or collected by a State for any 

4 activities covered by the regulations. 

5 ‘‘(d) EFFECTIVE DATE.— 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2) of this subsection, the regulations prescribed 

8 under subsection (a) of this section shall take effect 1 

9 year after the date on which prescribed. 

10 ‘‘(2) EXTENSION.—The Secretary may extend the 

11 1-year period in subsection (a) for an additional year 

12 for good cause. 

13 ‘‘(e) STATE REGULATIONS.—After the regulations pre14 scribed under subsection (a) of this section take effect under 

15 subsection (d) of this section, a State may establish, main16 tain, or enforce a requirement relating to the same subject 

17 matter only if the requirement is consistent with applicable 

18 requirements with respect to such activity in the regula19 tions. 

20 ‘‘(f) INTERIM STATE PROGRAMS.—Pending the pre21 scription of regulations under subsection (a) of this section, 

22 States may participate in the program of uniform forms 

23 and procedures recommended by the Alliance for Uniform 

24 Hazmat Transportation Procedures.’’. 
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1 SEC. 4438. INTERNATIONAL UNIFORMITY OF STANDARDS 

2 AND REQUIREMENTS. 

3 Section 5120 is amended by striking ‘‘of Transpor4 tation’’ each place it appears in subsections (a), (b), and 

5 (c)(1). 

6 SEC. 4439. HAZARDOUS MATERIALS TRANSPORTATION 

7 SAFETY AND SECURITY. 

8 The text of section 5121 is amended to read as follows: 

9 ‘‘(a) GENERAL AUTHORITY.— 

10 ‘‘(1) To carry out this chapter, the Secretary 

11 may investigate, conduct tests, make reports, issue 

12 subpoenas, conduct hearings, require the production of 

13 records and property, take depositions, and conduct 

14 research, development, demonstration, and training 

15 activities. 

16 ‘‘(2) Except as provided in subsections (c) and 

17 (d) of this section, the Secretary shall provide notice 

18 and an opportunity for a hearing before issuing an 

19 order directing compliance with this chapter, a regu20 lation prescribed under this chapter, or an order, spe21 cial permit, or approval issued under this chapter. 

22 ‘‘(b) RECORDS, REPORTS, PROPERTY, AND INFORMA23 TION.—A person subject to this chapter shall— 

24 ‘‘(1) maintain records, make reports, and pro25 vide property and information that the Secretary by 

26 regulation or order requires; and 
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1 ‘‘(2) make the records, reports, property, and in2 formation available for inspection when the Secretary 

3 undertakes an inspection or investigation. 

4 ‘‘(c) INSPECTIONS AND INVESTIGATIONS.— 

5 ‘‘(1) A designated officer or employee of the Sec6 retary may— 

7 ‘‘(A) inspect and investigate, at a reason8 able time and in a reasonable way, records and 

9 property relating to a function described in sec10 tion 5103(b)(1) of this title; 

11 ‘‘(B) except for packaging immediately ad12 jacent to the hazardous material contents, gain 

13 access to, open, and examine a package offered 

14 for or in transportation when the officer or em15 ployees has an objectively reasonable and 

16 articulable belief that the package may contain 

17 hazardous material; 

18 ‘‘(C) remove from transportation a package 

19 or related packages in a shipment offered for or 

20 in transportation for which— 

21 ‘‘(i) such officer or employee has an ob22 jectively reasonable and articulable belief 

23 that the package may pose an imminent 

24 hazard; and 
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1 ‘‘(ii) such officer or employee contem2 poraneously documents such belief in ac3 cordance with procedures set forth in regu4 lations prescribed under subsection (e) of 

5 this section; 

6 ‘‘(D) gather information from the offeror, 

7 carrier, packaging manufacturer or retester, or 

8 other person responsible for a package or pack9 ages to ascertain the nature and hazards of the 

10 contents of the package or packages; 

11 ‘‘(E) as necessary under terms and condi12 tions prescribed by the Secretary, order the offer13 or, carrier, or other person responsible for a 

14 package or packages to have the package or pack15 ages transported to an appropriate facility, 

16 opened, examined, and analyzed; and 

17 ‘‘(F) when safety might otherwise be com18 promised, authorize properly qualified personnel 

19 to assist in activities carried out under this 

20 paragraph. 

21 ‘‘(2) An officer or employee acting under the au22 thority of the Secretary under this subsection shall 

23 display proper credentials when requested. 

24 ‘‘(3) In instances when, as a result of an inspec25 tion or investigation under this subsection, an immi-
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1 nent hazards is not found to exist, the Secretary shall, 

2 in accordance with procedures set forth in regulations 

3 prescribed under subsection (e) of this section, assist 

4 the safe resumption of transportation of the package, 

5 packages, or transport unit concerned. 

6 ‘‘(d) EMERGENCY ORDERS.— 

7 ‘‘(1) If, upon inspection, investigation, testing, 

8 or research, the Secretary determines that a violation 

9 of a provision of this chapter, or a regulation pre10 scribed under this chapter, or an unsafe condition or 

11 practice, constitutes or is causing an imminent haz12 ard, the Secretary may issue or impose emergency re13 strictions, prohibitions, recalls, or out-of-service or14 ders, without notice or an opportunity for a hearing, 

15 but only to the extent necessary to abate the imminent 

16 hazard. 

17 ‘‘(2) The action of the Secretary under para18 graph (1) of this subsection shall be in a written 

19 emergency order that— 

20 ‘‘(A) describes the violation, condition, or 

21 practice that constitutes or is causing the immi22 nent hazard; 

23 ‘‘(B) states the restrictions, prohibitions, re24 calls, or out-of-service orders issued or imposed; 

25 and 
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1 ‘‘(C) describe the standards and procedures 

2 for obtaining relief from the order. 

3 ‘‘(3) After taking action under paragraph (1) of 

4 this subsection, the Secretary shall provide for review 

5 of the action under section 554 of title 5 if a petition 

6 for review is filed within 20 calendar days of the 

7 issuance of the order for the action. 

8 ‘‘(4) If a petition for review of an action is filed 

9 under paragraph (3) of this subsection and the review 

10 under that paragraph is not completed by the end of 

11 the 30-day period beginning on the date the petition 

12 is filed, the action shall cease to be effective at the end 

13 of such period unless the Secretary determines, in 

14 writing, that the imminent hazard providing a basis 

15 for the action continues to exist. 

16 ‘‘(5) In this subsection, the term ‘out-of-service 

17 order’ means a requirement that an aircraft, vessel, 

18 motor vehicle, train, railcar, locomotive, other vehicle, 

19 transport unit, transport vehicle, freight container, 

20 potable tank, or other package not be moved until 

21 specified conditions have been met. 

22 ‘‘(e) REGULATIONS.—The Secretary shall prescribe in 

23 accordance with section 553 of title 5 regulations to carry 

24 out the authority in subsections (c) and (d) of this section. 
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1 ‘‘(f) FACILITY, STAFF, AND REPORTING SYSTEM ON

2 RISKS, EMERGENCIES, AND ACTIONS.— 

3 ‘‘(1) The Secretary shall— 

4 ‘‘(A) maintain a facility and technical staff 

5 sufficient to provide, within the United States 

6 Government, the capability of evaluating a risk 

7 relating to the transportation of hazardous mate8 rial and material alleged to be hazardous; 

9 ‘‘(B) maintain a central reporting system 

10 and information center capable of providing in11 formation and advice to law enforcement and 

12 firefighting personnel, and other interested indi13 viduals, and officers and employees of the United 

14 States Government and State and local govern15 ments on meeting an emergency relating to the 

16 transportation of hazardous material; and 

17 ‘‘(C) conduct a continuous review on all as18 pects of transporting hazardous material to de19 cide on and take appropriate actions to ensure 

20 safe transportation of hazardous material. 

21 ‘‘(2) Paragraph (1) of this subsection shall not 

22 prevent the Secretary from making a contract with a 

23 private entity for use of a supplemental reporting sys24 tem and information center operated and maintained 

25 by the contractor. 
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1 ‘‘(g) GRANTS, COOPERATIVE AGREEMENTS, AND

2 OTHER TRANSACTIONS.—The Secretary may enter into 

3 grants, cooperative agreements, and other transactions with 

4 a person, agency, or instrumentality of the United States, 

5 a unit of State or local government, an Indian tribe, a for6 eign government (in coordination with the Department of 

7 State), an educational institution, or other appropriate en8 tity— 

9 ‘‘(1) to expand risk assessment and emergency 

10 response capabilities with respect to the security of 

11 transportation of hazardous material; 

12 ‘‘(2) to conduct research, development, dem13 onstration, risk assessment and emergency response 

14 planning and training activities; or 

15 ‘‘(3) to otherwise carry out this chapter. 

16 ‘‘(h) REPORTS.— 

17 ‘‘(1) The Secretary shall, once every 2 years, sub18 mit to the Senate Committee on Commerce, Science, 

19 and Transportation and the House of Representatives 

20 Committee on Transportation and Infrastructure a 

21 comprehensive report on the transportation of haz22 ardous material during the preceding 2 calendar 

23 years. Each report shall include, for the period cov24 ered by such report— 
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1 ‘‘(A) a statistical compilation of the acci2 dents, incidents, and casualties related to the 

3 transportation of hazardous material during 

4 such period; 

5 ‘‘(B) a list and summary of applicable Gov6 ernment regulations, criteria, orders, and special 

7 permits; 

8 ‘‘(C) a summary of the basis for each spe9 cial permit issued; 

10 ‘‘(D) an evaluation of the effectiveness of en11 forcement activities relating to the transpor12 tation of hazardous material during such period, 

13 and of the degree of voluntary compliance with 

14 regulations; 

15 ‘‘(E) a summary of outstanding problems in 

16 carrying out this chapter, set forth in order of 

17 priority; and 

18 ‘‘(F) any recommendations for legislative or 

19 administrative action that the Secretary con20 siders appropriate. 

21 ‘‘(2) Before December 31, 2005, and every 3 

22 years thereafter, the Secretary, through the Bureau of 

23 Transportation Statistics and in consultation with 

24 other Federal departments and agencies, shall submit 

25 a report to the Senate Committee on Commerce, 
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1 Science, and Transportation and the House of Rep2 resentatives Committee on Transportation and Infra3 structure on the transportation of hazardous material 

4 in all modes of transportation during the preceding 

5 3 calendar years. Each report shall include, for the 

6 period covered by such report— 

7 ‘‘(A) a summary of the hazardous material 

8 shipments, deliveries, and movements during 

9 such period, set forth by hazardous materials 

10 type, by tonnage and ton-miles, and by mode, 

11 both domestically and across United States bor12 ders; and 

13 ‘‘(B) a summary of shipment estimates dur14 ing such period as a proxy for risk. 

15 ‘‘(i) SECURITY SENSITIVE INFORMATION.— 

16 ‘‘(1) If the Secretary determines that particular 

17 information may reveal a vulnerability of a haz18 ardous material to attack during transportation in 

19 commerce, or may facilitate the diversion of haz20 ardous material during transportation in commerce 

21 for use in an attack on people or property, the Sec22 retary may disclose such information only— 

23 ‘‘(A) to the owner, custodian, offeror, or car24 rier of such hazardous material; 
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1 ‘‘(B) to an officer, employee, or agent of the 

2 United States Government, or a State or local 

3 government, including volunteer fire depart4 ments, concerned with carrying out transpor5 tation safety laws, protecting hazardous material 

6 in the course of transportation in commerce, pro7 tecting public safety or national security, or en8 forcing Federal law designed to protect public 

9 health or the environment; or 

10 ‘‘(C) in an administrative or judicial pro11 ceeding brought under this chapter, under other 

12 Federal law intended to protect public health or 

13 the environment, or under other Federal law in14 tended to address terrorist actions or threats of 

15 terrorist actions. 

16 ‘‘(2) The Secretary may make determinations 

17 under paragraph (1) of this subsection with respect 

18 categories of information in accordance with regula19 tions prescribed by the Secretary. 

20 ‘‘(3) A release of information pursuant to a de21 termination under paragraph (1) of this subsection 

22 shall not be treated as a release of such information 

23 to the public for purposes of section 552 of title 5.’’. 
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1 SEC. 4440. ENFORCEMENT. 

2 (a) REFERENCE TO SECRETARY OF TRANSPOR3 TATION.—Section 5122(a) is amended by striking ‘‘of 

4 Transportation’’. 

5 (b) GENERAL.—Section 5122(a) is further amended— 

6 (1) by striking ‘‘chapter or a regulation pre7 scribed or order’’in the first sentence and inserting 

8 ‘‘chapter, a regulation prescribed under this chapter, 

9 or an order, special permit, or approval’’; and 

10 (2) by striking the second sentence and inserting 

11 ‘‘In an action under this subsection, the court may 

12 award appropriate relief, including a temporary or 

13 permanent injunction, civil penalties under section 

14 5123 of this title, and punitive damages.’’. 

15 (c) IMMINENT HAZARDS.—Section 5122(b)(1)(B) is 

16 amended by striking ‘‘ameliorate’’ and inserting ‘‘miti17 gate’’. 

18 SEC. 4441. CIVIL PENALTIES. 

19 (a) REFERENCE TO SECRETARY OF TRANSPOR20 TATION.—Section 5123(b) is amended by striking ‘‘of 

21 Transportation’’. 

22 (b) PENALTY.—Section 5123(a)(1) is amended— 

23 (1) by striking ‘‘chapter or a regulation pre24 scribed or order’’ and inserting ‘‘chapter, a regulation 

25 prescribed under this chapter, or an order, special 

26 permit, or approval’’; and 
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1 (2) by striking ‘‘$25,000’’ and inserting 

2 ‘‘$100,000’’. 

3 (c) HEARING REQUIREMENT.—Section 5123(b) is 

4 amended by striking ‘‘chapter or a regulation prescribed’’ 

5 and inserting ‘‘chapter, a regulation prescribed under this 

6 chapter, or an order, special permit, or approval issued’’. 

7 (d) CIVIL ACTIONS TO COLLECT.—Section 5123(d) is 

8 amended by striking ‘‘section.’’ and inserting ‘‘section and 

9 any accrued interest on the civil penalty as calculated in 

10 accordance with section 1005 of the Oil Pollution Act of 

11 1990 (33 U.S.C. 2705). In the civil action, the amount and 

12 appropriateness of the civil penalty shall not be subject to 

13 review.’’. 

14 (e) EFFECTIVE DATE.—(1) The amendments made by 

15 subsections (b) and (c) of this section shall take effect on 

16 the date of the enactment of this Act, and shall apply with 

17 respect to violations described in section 5123(a) of title 49, 

18 United States Code (as amended by this section), that occur 

19 on or after that date. 

20 (2) The amendment made by subsection (d) of this sec21 tion shall apply with respect to civil penalties imposed on 

22 violations described in section 5123(a) of title 49, United 

23 States Code (as amended by this section), which violations 

24 occur on or after the date of the enactment of this Act. 
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1 SEC. 4442. CRIMINAL PENALTIES. 

2 (a) IN GENERAL.—Section 5124 is amended— 

3 (1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A 

4 person’’; and 

5 (2) by striking ‘‘chapter or a regulation pre6 scribed or order’’ and inserting ‘‘chapter, a regulation 

7 prescribed under this chapter, or an order, special 

8 permit, or approval’’. 

9 (b) ADDITIONAL MATTERS.—That section is further 

10 amended by adding at the end the following: 

11 ‘‘(b) AGGRAVATED VIOLATIONS.—A person knowingly 

12 violating section 5104(b) of this title or willfully violating 

13 this chapter or a regulation prescribed, or an order, special 

14 permit, or approval issued, under this chapter, who thereby 

15 causes the release of hazardous material shall be fined under 

16 title 18, imprisoned for not more than 20 years, or both. 

17 ‘‘(c) SEPARATE VIOLATIONS.—A separate violation oc18 curs for each day the violation, committed by a person who 

19 transports or causes to be transported hazardous material, 

20 continues.’’. 

21 SEC. 4443. PREEMPTION. 

22 (a) REFERENCE TO SECRETARY OF TRANSPOR23 TATION.—Section 5125(b)(2) is amended by striking ‘‘of 

24 Transportation’’. 

25 (b) PURPOSES.—Section 5125 is amended— 
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1 (1) by redesignating subsections (a), (b), (c), (d), 

2 (e), (f), and (g) as subsections (b), (c), (d), (e), (f), 

3 (g), and (h), respectively; 

4 (2) by inserting before subsection (b), as so redes5 ignated, the following: 

6 ‘‘(a) PURPOSES.—The Secretary shall exercise the au7 thority in this section— 

8 ‘‘(1) to achieve uniform regulation of the trans9 portation of hazardous material; 

10 ‘‘(2) to eliminate rules that are inconsistent with 

11 the regulations prescribed under this chapter; and 

12 ‘‘(3) to otherwise promote the safe and efficient 

13 movement of hazardous material in commerce.’’; 

14 (3) by striking subsection (g), as redesignated; 

15 and 

16 (4) by redesignating subsection (h), as redesig17 nated, as subsection (g). 

18 (c) GENERAL PREEMPTION.—Section 5125(b), as re19 designated by subsection (b)(1) of this section, is further 

20 amended by striking ‘‘GENERAL.—Except as provided in 

21 subsection (b), (c), and (e)’’ and inserting ‘‘PREEMPTION

22 GENERALLY.—Except as provided in subsections (c), (d), 

23 and (f)’’. 

24 (d) SUBSTANTIVE DIFFERENCES.—Section 5125(c), as 

25 so redesignated, is further amended— 
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1 (1) in the matter preceding subparagraph (A) of 

2 paragraph (1), by striking ‘‘subsection (c)’’ and in3 serting ‘‘subsection (d)’’; 

4 (2) by striking subparagraph (E) of paragraph 

5 (1) and inserting the following: 

6 ‘‘(E) the manufacturing, designing, inspecting, 

7 testing, reconditioning, or repairing of a packaging or 

8 packaging component that is represented as qualified 

9 for use in transporting hazardous material in com10 merce.’’; and 

11 (3) by striking ‘‘prescribes after November 16, 

12 1990. However, the’’ in paragraph (2) and inserting 

13 ‘‘prescribes. The’’. 

14 (e) DECISIONS ON PREEMPTION.—Section 5125(e), as 

15 so redesignated, is further amended by striking ‘‘subsection 

16 (a), (b)(1), or (c) of this section.’’ in the first sentence and 

17 inserting ‘‘subsection (b), (c)(1), or (d) of this section or 

18 section 5119(b) of this title.’’. 

19 (f) WAIVER OF PREEMPTION.—Section 5125(f), as so 

20 redesignated, is further amended by striking ‘‘subsection 

21 (a), (b)(1), or (c) of this section.’’ and inserting ‘‘subsection 

22 (b), (c)(1), or (d) of this section or section 5119(b) of this 

23 title.’’. 

24 (g) EMERGENCY WAIVER OF PREEMPTION; ADDI25 TIONAL MATTERS.—Section 5125 is further amended— 
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1 (1) by redesignating subsection (g), as redesig2 nated by subsection (b)(4) of this section, as sub3 section (j); and 

4 (2) by inserting after subsection (f), as redesig5 nated by subsection (b)(1) of this section, the fol6 lowing: 

7 ‘‘(g) EMERGENCY WAIVER OF PREEMPTION.— 

8 ‘‘(1) The Secretary may, upon a finding of good 

9 cause, waive the preemption of a requirement of a 

10 State, political subdivision of a State, or Indian tribe 

11 under this section without prior notice or an oppor12 tunity for public comment thereon. 

13 ‘‘(2) For purposes of paragraph (1) of this sub14 section, good cause exists when— 

15 ‘‘(A) there is a potential threat that haz16 ardous material being transported in commerce 

17 may be used in an attack on people or property; 

18 and 

19 ‘‘(B) notice and an opportunity for public 

20 comment thereon are impracticable or contrary 

21 to the public interest. 

22 ‘‘(3)(A) A waiver of preemption under para23 graph (1) of this subsection shall be in effect for a pe24 riod specified by the Secretary, but not more than 6 

25 months. 
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1 ‘‘(B) If the Secretary determines before the expi2 ration of a waiver of preemption under subparagraph 

3 (A) of this paragraph that the potential threat pro4 viding the basis for the waiver continues to exist, the 

5 Secretary may, after providing notice and an oppor6 tunity for public comment thereon, extend the dura7 tion of the waiver for such period after the expiration 

8 of the waiver under that subparagraph as the Sec9 retary considers appropriate. 

10 ‘‘(4) An action of the Secretary under paragraph 

11 (1) or (3) of this subsection shall be in writing and 

12 shall set forth the standards and procedures for seek13 ing reconsideration of the action. 

14 ‘‘(5) After taking action under paragraph (1) or 

15 (3) of this subsection, the Secretary shall provide for 

16 review of the action if a petition for review of the ac17 tion is filed within 20 calendar days after the date 

18 of the action. 

19 ‘‘(6) If a petition for review of an action is filed 

20 under paragraph (5) of this subsection and review of 

21 the action is not completed by the end of the 30-day 

22 period beginning on the date the petition is filed, the 

23 waiver under this subsection shall cease to be effective 

24 at the end of such period unless the Secretary deter-
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1 mines, in writing, that the potential threat providing 

2 the basis for the waiver continues. 

3 ‘‘(h) APPLICATION OF EACH PREEMPTION STAND4 ARD.—Each standard for preemption in subsection (b), 

5 (c)(1), or (d) of this section, and in section 5119(b) of this 

6 title, is independent in its application to a requirement of 

7 a State, political subdivision of a State, or Indian tribe. 

8 ‘‘(i) NON-FEDERAL ENFORCEMENT STANDARDS.— 

9 This section does not apply to any procedure, penalty, re10 quired mental state, or other standard utilized by a State, 

11 political subdivision of a State, or Indian tribe to enforce 

12 a requirement applicable to the transportation of hazardous 

13 material.’’. 

14 SEC. 4444. RELATIONSHIP TO OTHER LAWS. 

15 Section 5126 is amended— 

16 (1) by striking ‘‘or causes to be transported haz17 ardous material,’’ in subsection (a) and inserting 

18 ‘‘hazardous material, or causes hazardous material to 

19 be transported,’’; 

20 (2) by striking ‘‘manufactures,’’ and all that fol21 lows through ‘‘or sells’’ in subsection (a) and inserting 

22 ‘‘manufactures, designs, inspects, tests, reconditions, 

23 marks, or repairs a packaging or packaging compo24 nent that is represented’’; 
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1 (3) by striking ‘‘must’’ in subsection (a) and in2 serting ‘‘shall’’; 

3 (4) by striking ‘‘manufacturing,’’ in subsection 

4 (a) and all that follows through ‘‘testing’’ and insert5 ing ‘‘manufacturing, designing, inspecting, testing, 

6 reconditioning, marking, or repairing’’; and 

7 (5) by striking ‘‘39.’’ in subsection (b)(2) and in8 serting ‘‘39, except in the case of an imminent haz9 ard.’’. 

10 SEC. 4445. JUDICIAL REVIEW. 

11 (a) IN GENERAL.—Chapter 51 is amended— 

12 (1) by redesignating section 5127 as section 

13 5128; and 

14 (2) by inserting after section 5126 the following: 

15 ‘‘§ 5127. Judicial review 

16 ‘‘(a) FILING AND VENUE.—Except as provided in sec17 tion 20114(c) of this title, a person suffering legal wrong 

18 or adversely affected or aggrieved by a final action of the 

19 Secretary under this chapter may petition for review of the 

20 final action in the United States Court of Appeals for the 

21 District of Columbia or in the court of appeals of the United 

22 States for the circuit in which the person or resides or has 

23 the principal place of business. The petition shall be filed 

24 not more than 60 days after the action of the Secretary be25 comes final. 
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1 ‘‘(b) PROCEDURES.—When a petition on a final action 

2 is filed under subsection (a) of this section, the clerk of the 

3 court shall immediately send a copy of the petition to the 

4 Secretary. The Secretary shall file with the court a record 

5 of any proceeding in which the final action was issued as 

6 provided in section 2112 of title 28. 

7 ‘‘(c) AUTHORITY OF COURT.—The court in which a pe8 tition on a final action is filed under subsection (a) of this 

9 section has exclusive jurisdiction, as provided in subchapter 

10 II of chapter 5 of title 5 to affirm or set aside any part 

11 of the final action and may order the Secretary to conduct 

12 further proceedings. Findings of fact by the Secretary, if 

13 supported by substantial evidence, are conclusive. 

14 ‘‘(d) REQUIREMENT FOR PRIOR OBJECTIONS.—In re15 viewing a final action under this section, the court may 

16 consider an objection to the final action only if— 

17 ‘‘(1) the objection was made in the course of a 

18 proceeding or review conducted by the Secretary; or 

19 ‘‘(2) there was a reasonable ground for not mak20 ing the objection in the proceeding.’’. 

21 (b) CLERICAL AMENDMENT.—The chapter analysis for 

22 chapter 51 is amended by striking the item relating to sec23 tion 5127 and inserting the following: 

‘‘5127. Judicial review. 

‘‘5128. Authorization of appropriations.’’. 
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1 SEC. 4446. AUTHORIZATION OF APPROPRIATIONS. 

2 Section 5128, as redesignated by section 4445 of this 

3 title, is amended to read as follows: 

4 ‘‘§ 5128. Authorization of appropriations 

5 ‘‘(a) GENERAL.—In order to carry out this chapter 

6 (except sections 5107(e), 5108(g), 5112, 5113, 5115, 5116, 

7 and 5119 of this title), the following amounts are authorized 

8 to be appropriated to the Secretary: 

9 ‘‘(1) For fiscal year 2004, not more than 

10 $24,981,000. 

11 ‘‘(2) For fiscal year 2005, not more than 

12 $27,000,000. 

13 ‘‘(3) For fiscal year 2006, not more than 

14 $29,000,000. 

15 ‘‘(4) For each of fiscal years 2007 through 2009, 

16 not more than $30,000,000. 

17 ‘‘(b) EMERGENCY PREPAREDNESS FUND.—There shall 

18 be available from the Emergency Preparedness Fund under 

19 section 5116(i) of this title, amounts as follows: 

20 ‘‘(1) To carry out section 5107(e) of this title, 

21 $4,000,000 for each of fiscal years 2004 through 2009. 

22 ‘‘(2) To carry out section 5115 of this title, 

23 $200,000 for each of fiscal years 2004 through 2009. 

24 ‘‘(3) To carry out section 5116(a) of this title, 

25 $8,000,000 for each of fiscal years 2004 through 2009. 
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1 ‘‘(4) To carry out section 5116(b) of this title, 

2 $13,800,000 for each of fiscal years 2004 through 

3 2009. 

4 ‘‘(5) To carry out section 5116(f) of this title, 

5 $150,000 for each of fiscal years 2004 through 2009. 

6 ‘‘(6) To carry out section 5116(i)(4) of this title, 

7 $150,000 for each of fiscal years 2004 through 2009. 

8 ‘‘(7) To carry out section 5116(j) of this title, 

9 $1,000,000 for each of fiscal years 2004 through 2009. 

10 ‘‘(8) To publish and distribute an emergency re11 sponse guidebook under section 5116(i)(3) of title 49, 

12 United States Code, $500,000 for each of fiscal years 

13 2004 through 2009. 

14 ‘‘(c) SECTION 5121 REPORTS.—There are authorized 

15 to be appropriated to the Secretary of Transportation for 

16 the use of the Bureau of Transportation Statistics such 

17 sums as may be necessary to carry out section 5121(h) of 

18 this title.’’. 

19 ‘‘(d) CREDIT TO APPROPRIATIONS.—The Secretary 

20 may credit to any appropriation to carry out this chapter 

21 an amount received from a State, political subdivision of 

22 a State, Indian tribe, or other public authority or private 

23 entity for expenses the Secretary incurs in providing train24 ing to the State, political subdivision, Indian tribe, or other 

25 authority or entity. 
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1 ‘‘(e) AVAILABILITY OF AMOUNTS.—Amounts available 

2 under subsections (a) and (b) of this section shall remain 

3 available until expended.’’. 

4 SEC. 4447. ADDITIONAL CIVIL AND CRIMINAL PENALTIES. 

5 (a) TITLE 49 PENALTIES.—Section 46312 is amend6 ed— 

7 (1) by striking ‘‘part—’’ in subsection (a) and 

8 inserting ‘‘part or chapter 51 of this title—’’; and 

9 (2) by inserting ‘‘or chapter 51 of this title’’ in 

10 subsection (b) after ‘‘under this part’’. 

11 (b) TITLE 18 PENALTIES.—Section 3663(a)(1)(A) of 

12 title 18, United States Code, is amended by inserting 

13 ‘‘5124,’’ before ‘‘46312,’’. 

14 PART II—OTHER MATTERS 

15 SEC. 4461. ADMINISTRATIVE AUTHORITY FOR RESEARCH 

16 AND SPECIAL PROGRAMS ADMINISTRATION. 

17 Section 112 is amended— 

18 (1) by redesignating subsection (e) as subsection 

19 (f); and 

20 (2) by inserting after subsection (d) the fol21 lowing: 

22 ‘‘(e) ADMINISTRATIVE AUTHORITIES.— 

23 ‘‘(1) GRANTS, COOPERATIVE AGREEMENTS, AND

24 OTHER TRANSACTIONS.—The Administrator may 

25 enter into grants, cooperative agreements, and other 
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1 transactions with Federal agencies, State and local 

2 government agencies, other public entities, private or3 ganizations, and other persons— 

4 ‘‘(A) to conduct research into transportation 

5 service and infrastructure assurance; and 

6 ‘‘(B) to carry out other research activities of 

7 the Administration. 

8 ‘‘(2) LIMITATION ON DISCLOSURE OF CERTAIN

9 INFORMATION.— 

10 ‘‘(A) LIMITATION.—If the Administrator de11 termines that particular information developed 

12 in research sponsored by the Administration 

13 may reveal a systemic vulnerability of transpor14 tation service or infrastructure, such information 

15 may be disclosed only to— 

16 ‘‘(i) a person responsible for the secu17 rity of the transportation service or infra18 structure; or 

19 ‘‘(ii) a person responsible for pro20 tecting public safety; or 

21 ‘‘(iii) an officer, employee, or agent of 

22 the Federal Government, or a State or local 

23 government, who, as determined by the Ad24 ministrator, has need for such information 

25 in the performance of official duties. 
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1 ‘‘(B) TREATMENT OF RELEASE.—The re2 lease of information under subparagraph (A) 

3 shall not be treated as a release to the public for 

4 purposes of section 552 of title 5.’’. 

5 SEC. 4462. MAILABILITY OF HAZARDOUS MATERIALS. 

6 (a) NONMAILABILITY GENERALLY.—Section 3001 of 

7 title 39, United States Code, is amended— 

8 (1) by redesignating subsection (n) as subsection 

9 (o); and 

10 (2) by inserting after subsection (m) the fol11 lowing: 

12 ‘‘(n)(1) Except as otherwise authorized by law or regu13 lations of the Postal Service under section 3018 of this title, 

14 hazardous material is nonmailable. 

15 ‘‘(2) In this subsection, the term ‘hazardous material’ 

16 means a substance or material designated by the Secretary 

17 of Transportation as hazardous material under section 

18 5103(a) of title 49.’’. 

19 (b) MAILABILITY.— 

20 (1) IN GENERAL.—Chapter 30 of title 39, United 

21 States Code, is amended by adding at the end the fol22 lowing: 
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1 ‘‘§ 3018. Hazardous material 

2 ‘‘(a) IN GENERAL.—The Postal Service shall prescribe 

3 regulations for the safe transportation of hazardous mate4 rial in the mails. 

5 ‘‘(b) PROHIBITIONS.—No person may— 

6 ‘‘(1) mail or cause to be mailed hazardous mate7 rial that has been declared by statute or Postal Serv8 ice regulation to be nonmailable; 

9 ‘‘(2) mail or cause to be mailed hazardous mate10 rial in violation of any statute or Postal Service reg11 ulation restricting the time, place, or manner in 

12 which hazardous material may be mailed; or 

13 ‘‘(3) manufacture, distribute, or sell any con14 tainer, packaging kit, or similar device that— 

15 ‘‘(A) is represented, marked, certified, or 

16 sold by such person for use in the mailing of 

17 hazardous material; and 

18 ‘‘(B) fails to conform with any statute or 

19 Postal Service regulation setting forth standards 

20 for a container, packaging kit, or similar device 

21 used for the mailing of hazardous material. 

22 ‘‘(c) CIVIL PENALTY.— 

23 ‘‘(1) IN GENERAL.—A person who knowingly vio24 lates this section or a regulation prescribed under this 

25 section shall be liable to the Postal Service for— 
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1 ‘‘(A) a civil penalty of at least $250, but 

2 not more than $100,000, for each violation; 

3 ‘‘(B) the costs of any clean-up associated 

4 with such violation; and 

5 ‘‘(C) damages. 

6 ‘‘(2) KNOWING ACTION.—A person acts know7 ingly for purposes of paragraph (1) when— 

8 ‘‘(A) the person has actual knowledge of the 

9 facts giving rise to the violation; or 

10 ‘‘(B) a reasonable person acting in the cir11 cumstances and exercising reasonable care would 

12 have had that knowledge. 

13 ‘‘(3) KNOWLEDGE OF STATUTE OR REGULATION

14 NOT ELEMENT OF OFFENSE.—Knowledge of the exist15 ence of a statutory provision or Postal Service regula16 tion is not an element of an offense under this sub17 section. 

18 ‘‘(4) SEPARATE VIOLATIONS.— 

19 ‘‘(A) VIOLATIONS OVER TIME.—A separate 

20 violation under this subsection occurs for each 

21 day hazardous material, mailed or cause to be 

22 mailed in noncompliance with this section, is in 

23 the mail. 

24 ‘‘(B) SEPARATE ITEMS.—A separate viola25 tion under this subsection occurs for each item 
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1 containing hazardous material that is mailed or 

2 caused to be mailed in noncompliance with this 

3 section. 

4 ‘‘(d) HEARINGS.—The Postal Service may determine 

5 that a person has violated this section or a regulation pre6 scribed under this section only after notice and an oppor7 tunity for a hearing. 

8 ‘‘(e) PENALTY CONSIDERATIONS.—In determining the 

9 amount of a civil penalty for a violation of this section, 

10 the Postal Service shall consider— 

11 ‘‘(1) the nature, circumstances, extent, and grav12 ity of the violation; 

13 ‘‘(2) with respect to the person who committed 

14 the violation, the degree of culpability, any history of 

15 prior violations, the ability to pay, and any effect on 

16 the ability to continue in business; 

17 ‘‘(3) the impact on Postal Service operations; 

18 and 

19 ‘‘(4) any other matters that justice requires. 

20 ‘‘(f) CIVIL ACTIONS TO COLLECT.— 

21 ‘‘(1) IN GENERAL.—In accordance with section 

22 4409(d) of this title, a civil action may be commenced 

23 in an appropriate district court of the United States 

24 to collect a civil penalty, clean-up costs, and damages 

25 assessed under subsection (c). 
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1 ‘‘(2) LIMITATION.—In a civil action under para2 graph (1), the validity, amount, and appropriateness 

3 of the civil penalty, clean-up costs, and damages cov4 ered by the civil action shall not be subject to review. 

5 ‘‘(3) COMPROMISE.—The Postal Service may 

6 compromise the amount a civil penalty, clean-up 

7 costs, and damages assessed under subsection (c) be8 fore commencing a civil action with respect to such 

9 civil penalty, clean-up costs, and damages under 

10 paragraph (1). 

11 ‘‘(g) CIVIL JUDICIAL PENALTIES.— 

12 ‘‘(1) IN GENERAL.—At the request of the Postal 

13 Service, the Attorney General may bring a civil ac14 tion in an appropriate district court of the United 

15 States to enforce this section or a regulation pre16 scribed under this section. 

17 ‘‘(2) RELIEF.—The court in a civil action under 

18 paragraph (1) may award appropriate relief, includ19 ing a temporary or permanent injunction, civil pen20 alties as determined in accordance with this section, 

21 or punitive damages. 

22 ‘‘(3) CONSTRUCTION.—A civil action under this 

23 subsection shall be in lieu of civil penalties for the 

24 same violation under subsection (c)(1)(A). 
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1 ‘‘(h) DEPOSIT OF AMOUNTS COLLECTED.—Amounts 

2 collected under this section shall be deposited into the Postal 

3 Service Fund under section 2003 of this title.’’. 

4 (2) CONFORMING AMENDMENT.—The chapter 

5 analysis for chapter 30 of title 39, United States 

6 Code, is amended by adding at the end the following: 

‘‘3018. Hazardous material.’’. 

7 (c) CONFORMING AMENDMENT.—Section 2003(b) of 

8 title 39, United States Code, is amended— 

9 (1) by striking ‘‘and’’ after the semicolon in 

10 paragraph (7); 

11 (2) by striking ‘‘purposes.’’ in paragraph (8) 

12 and inserting ‘‘purposes; and’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(9) any amounts collected under section 3018 of 

15 this title.’’. 

16 SEC. 4463. CRIMINAL MATTERS. 

17 Section 845(a)(1) of title 18, United States Code, is 

18 amended by striking ‘‘which are regulated’’ and all that fol19 lows and inserting ‘‘that is subject to the authority of the 

20 Departments of Transportation and Homeland Security;’’. 

21 SEC. 4464. CARGO INSPECTION PROGRAM. 

22 (a) IN GENERAL.—The Secretary of Transportation 

23 may establish a program of random inspections of cargo 

24 at points of entry into the United States for the purpose 

25 of determining the extent to which undeclared hazardous 
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1 material is being offered for transportation in commerce 

2 through such points of entry. 

3 (b) INSPECTIONS.—Under the program under sub4 section (a)— 

5 (1) an officer of the Department of Transpor6 tation who is not located at a point of entry into the 

7 United States may select at random cargo shipments 

8 at points of entry into the United States for inspec9 tion; and 

10 (2) an officer or employee of the Department 

11 may open and inspect each cargo shipment so selected 

12 for the purpose described in subsection (a). 

13 (c) COORDINATION.—The Secretary of Transportation 

14 shall coordinate any inspections under the program under 

15 subsection (a) with the Secretary of Homeland Security. 

16 (d) DISPOSITION OF HAZARDOUS MATERIALS.—The 

17 Secretary of Transportation shall provide for the appro18 priate handling and disposition of any hazardous material 

19 discovered pursuant to inspections under the program 

20 under subsection (a). 

21 SEC. 4465. INFORMATION ON HAZMAT REGISTRATIONS. 

22 The Administrator of the Department of Transpor23 tation’s Research and Special Programs Administration 

24 shall— 
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1 (1) transmit current hazardous material reg2 istrant information to the Federal Motor Carrier 

3 Safety Administration to cross reference the reg4 istrant’s Federal motor carrier registration number; 

5 and 

6 (2) notify the Federal Motor Carrier Safety Ad7 ministration immediately, and provide a registrant’s 

8 United States Department of Transportation identi9 fication number to the Administration, whenever a 

10 new registrant registers to transport hazardous mate11 rials as a motor carrier. 

12 SEC. 4466. REPORT ON APPLYING HAZARDOUS MATERIALS 

13 REGULATIONS TO PERSONS WHO REJECT 

14 HAZARDOUS MATERIALS. 

15 Within 6 months after the date of enactment of this 

16 Act, the Secretary of Transportation shall complete an as17 sessment of the costs and benefits of subjecting persons who 

18 reject hazardous material for transportation in commerce 

19 to the hazardous materials laws and regulations. In com20 pleting this assessment, the Secretary shall— 

21 (1) estimate the number of affected employers 

22 and employees; 

23 (2) determine what actions would be required by 

24 them to comply with such laws and regulations; and 
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1 (3) consider whether and to what extent the ap2 plication of Federal hazardous materials laws and 

3 regulations should be limited to— 

4 (A) particular modes of transportation; 

5 (B) certain categories of employees; or 

6 (C) certain classes or categories of haz7 ardous materials. 

8 PART III—SANITARY FOOD TRANSPORTATION 

9 SEC. 4481. SHORT TITLE. 

10 This part may be cited as the ‘‘Sanitary Food Trans11 portation Act of 2004’’. 

12 SEC. 4482. RESPONSIBILITIES OF THE SECRETARY OF 

13 HEALTH AND HUMAN SERVICES. 

14 (a) UNSANITARY TRANSPORT DEEMED ADULTERA15 TION.—Section 402 of the Federal Food, Drug, and Cos16 metic Act (21 U.S.C. 342) is amended by adding at the 

17 end the following: 

18 ‘‘(i) NONCOMPLIANCE WITH SANITARY TRANSPOR19 TATION PRACTICES.—If the food is transported under con20 ditions that are not in compliance with the sanitary trans21 portation practices prescribed by the Secretary under sec22 tion 416.’’. 

23 (b) SANITARY TRANSPORTATION REQUIREMENTS.— 

24 Chapter IV of the Federal Food, Drug, and Cosmetic Act 
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1 (21 U.S.C. 341 et seq.) is amended by adding at the end 

2 the following: 

3 ‘‘SEC. 416. SANITARY TRANSPORTATION PRACTICES. 

4 ‘‘(a) DEFINITIONS.—In this section: 

5 ‘‘(1) BULK VEHICLE.—The term ‘bulk vehicle’ in6 cludes a tank truck, hopper truck, rail tank car, hop7 per car, cargo tank, portable tank, freight container, 

8 or hopper bin, and any other vehicle in which food 

9 is shipped in bulk, with the food coming into direct 

10 contact with the vehicle. 

11 ‘‘(2) TRANSPORTATION.—The term ‘transpor12 tation’ means any movement in commerce by motor 

13 vehicle or rail vehicle. 

14 ‘‘(b) REGULATIONS.—The Secretary shall by regula15 tion require shippers, carriers by motor vehicle or rail vehi16 cle, receivers, and other persons engaged in the transpor17 tation of food to use sanitary transportation practices pre18 scribed by the Secretary to ensure that food is not trans19 ported under conditions that may render the food adulter20 ated. 

21 ‘‘(c) CONTENTS.—The regulations shall— 

22 ‘‘(1) prescribe such practices as the Secretary de23 termines to be appropriate relating to— 

24 ‘‘(A) sanitation; 
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1 ‘‘(B) packaging, isolation, and other protec2 tive measures; 

3 ‘‘(C) limitations on the use of vehicles; 

4 ‘‘(D) information to be disclosed— 

5 ‘‘(i) to a carrier by a person arranging 

6 for the transport of food; and 

7 ‘‘(ii) to a manufacturer or other person 

8 that— 

9 ‘‘(I) arranges for the transpor10 tation of food by a carrier; or 

11 ‘‘(II) furnishes a tank vehicle or 

12 bulk vehicle for the transportation of 

13 food; and 

14 ‘‘(E) recordkeeping; and 

15 ‘‘(2) include— 

16 ‘‘(A) a list of nonfood products that the Sec17 retary determines may, if shipped in a bulk ve18 hicle, render adulterated food that is subse19 quently transported in the same vehicle; and 

20 ‘‘(B) a list of nonfood products that the Sec21 retary determines may, if shipped in a motor ve22 hicle or rail vehicle (other than a tank vehicle or 

23 bulk vehicle), render adulterated food that is si24 multaneously or subsequently transported in the 

25 same vehicle. 
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1 ‘‘(d) WAIVERS.— 

2 ‘‘(1) IN GENERAL.—The Secretary may waive 

3 any requirement under this section, with respect to 

4 any class of persons, vehicles, food, or nonfood prod5 ucts, if the Secretary determines that the waiver— 

6 ‘‘(A) will not result in the transportation of 

7 food under conditions that would be unsafe for 

8 human or animal health; and 

9 ‘‘(B) will not be contrary to the public in10 terest. 

11 ‘‘(2) PUBLICATION.—The Secretary shall publish 

12 in the Federal Register any waiver and the reasons 

13 for the waiver. 

14 ‘‘(e) PREEMPTION.— 

15 ‘‘(1) IN GENERAL.—No State or political sub16 division of a State may directly or indirectly estab17 lish or continue in effect, as to any food in interstate 

18 commerce, any authority or requirement concerning 

19 transportation of food that is not identical to an au20 thority or requirement under this section. 

21 ‘‘(2) APPLICABILITY.—This subsection applies to 

22 transportation that occurs on or after the effective 

23 date of the regulations promulgated under subsection 

24 (b). 
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1 ‘‘(f) ASSISTANCE OF OTHER AGENCIES.—The Sec2 retary of Transportation, the Secretary of Agriculture, the 

3 Administrator of the Environmental Protection Agency, 

4 and the heads of other Federal agencies, as appropriate, 

5 shall provide assistance on request, to the extent resources 

6 are available, to the Secretary for the purposes of carrying 

7 out this section.’’. 

8 (c) INSPECTION OF TRANSPORTATION RECORDS.— 

9 (1) REQUIREMENT.—Section 703 of the Federal 

10 Food, Drug, and Cosmetic Act (21 U.S.C. 373) is 

11 amended— 

12 (A) by striking the section heading and all 

13 that follows through ‘‘For the purpose’’ and in14 serting the following: 

15 ‘‘SEC. 703. RECORDS. 

16 ‘‘(a) IN GENERAL.—For the purpose’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(b) FOOD TRANSPORTATION RECORDS.—A shipper, 

19 carrier by motor vehicle or rail vehicle, receiver, or other 

20 person subject to section 416 shall, on request of an officer 

21 or employee designated by the Secretary, permit the officer 

22 or employee, at reasonable times, to have access to and to 

23 copy all records that the Secretary requires to be kept under 

24 section 416(c)(1)(E).’’. 
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1 (2) CONFORMING AMENDMENT.—Subsection (a) 

2 of section 703 of the Federal Food, Drug, and Cos3 metic Act (as designated by paragraph (1)(A)) is 

4 amended by striking ‘‘carriers.’’ and inserting ‘‘car5 riers, except as provided in subsection (b)’’. 

6 (d) PROHIBITED ACTS.— 

7 (1) RECORDS INSPECTION.—Section 301(e) of the 

8 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

9 331(e)) is amended by inserting ‘‘416,’’ before ‘‘504,’’ 

10 each place it appears. 

11 (2) UNSAFE FOOD TRANSPORTATION.—Section 

12 301 of the Federal Food, Drug, and Cosmetic Act (21 

13 U.S.C. 331) is amended by adding at the end the fol14 lowing: 

15 ‘‘(hh) NONCOMPLIANCE WITH SANITARY TRANSPOR16 TATION PRACTICES.—The failure by a shipper, carrier by 

17 motor vehicle or rail vehicle, receiver, or any other person 

18 engaged in the transportation of food to comply with the 

19 sanitary transportation practices prescribed by the Sec20 retary under section 416.’’. 

21 SEC. 4483. DEPARTMENT OF TRANSPORTATION REQUIRE22 MENTS. 

23 Chapter 57, is amended to read as follows: 
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1 ‘‘CHAPTER 57—SANITARY FOOD 

2 TRANSPORTATION 

‘‘Sec. 

‘‘5701. Food transportation safety inspections. 

3 ‘‘§ 5701. Food transportation safety inspections 

4 ‘‘(a) INSPECTION PROCEDURES.— 

5 ‘‘(1) IN GENERAL.—The Secretary of Transpor6 tation, in consultation with the Secretary of Health 

7 and Human Services and the Secretary of Agri8 culture, shall— 

9 ‘‘(A) establish procedures for transportation 

10 safety inspections for the purpose of identifying 

11 suspected incidents of contamination or adulter12 ation of— 

13 ‘‘(i) food in violation of regulations 

14 promulgated under section 416 of the Fed15 eral Food, Drug, and Cosmetic Act; and 

16 ‘‘(ii) meat subject to detention under 

17 section 402 of the Federal Meat Inspection 

18 Act (21 U.S.C. 672); and 

19 ‘‘(iii) poultry products subject to deten20 tion under section 19 of the Poultry Prod21 ucts Inspection Act (21 U.S.C. 467a); and 

22 ‘‘(B) train personnel of the Department of 

23 Transportation in the appropriate use of the 

24 procedures. 
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1 ‘‘(2) APPLICABILITY.—The procedures established 

2 under paragraph (1) of this subsection shall apply, at 

3 a minimum, to Department of Transportation per4 sonnel that perform commercial motor vehicle or rail5 road safety inspections. 

6 ‘‘(b) NOTIFICATION OF SECRETARY OF HEALTH AND

7 HUMAN SERVICES OR SECRETARY OF AGRICULTURE.—The 

8 Secretary of Transportation shall promptly notify the Sec9 retary of Health and Human Services or the Secretary of 

10 Agriculture, as applicable, of any instances of potential food 

11 contamination or adulteration of a food identified during 

12 transportation safety inspections. 

13 ‘‘(c) USE OF STATE EMPLOYEES.—The means by 

14 which the Secretary of Transportation carries out sub15 section (b) of this section may include inspections conducted 

16 by State employees using funds authorized to be appro17 priated under sections 31102 through 31104 of this title.’’. 

18 SEC. 4484. EFFECTIVE DATE. 

19 This part takes effect on October 1, 2003. 

20 Subtitle E—Recreational Boating 

21 Safety Programs 

22 SEC. 4501. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Sport Fishing and 

24 Recreational Boating Safety Act’’. 
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1 PART I—FEDERAL AID IN SPORT FISH 

2 RESTORATION ACT AMENDMENTS 

3 SEC. 4521. AMENDMENT OF FEDERAL AID IN FISH RESTORA4 TION ACT. 

5 Except as otherwise expressly provided, whenever in 

6 this subtitle an amendment or repeal is expressed in terms 

7 of an amendment to, or repeal of, a section or other provi8 sion, the reference shall be considered to be made to a section 

9 or other provision of the Act entitled ‘‘An Act to provide 

10 that the United States shall aid the States in fish restora11 tion and management projects, and for other purposes,’’ ap12 proved August 9, 1950 (64 Stat. 430; 16 U.S.C. 777 et seq.). 

13 SEC. 4522. AUTHORIZATION OF APPROPRIATIONS. 

14 (a) IN GENERAL.—Section 3 (16 U.S.C. 777b) is 

15 amended— 

16 (1) by striking ‘‘the succeeding fiscal year.’’ in 

17 the third sentence and inserting ‘‘succeeding fiscal 

18 years.’’; and 

19 (2) by striking ‘‘in carrying on the research pro20 gram of the Fish and Wildlife Service in respect to 

21 fish of material value for sport and recreation.’’ and 

22 inserting ‘‘to supplement the 55.3 percent of each an23 nual appropriation to be apportioned among the 

24 States, as provided for in section 4(b) of this title.’’. 

25 (b) CONFORMING AMENDMENTS.— 
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1 (1) IN GENERAL.—Section 3 of the Dingell-John2 son Sport Fish Restoration Act (16 U.S.C. 777b) is 

3 amended in the first sentence— 

4 (A) by striking ‘‘Sport Fish Restoration Ac5 count’’ and inserting ‘‘Sport Fish Restoration 

6 Trust Fund’’; and 

7 (B) by striking ‘‘that Account’’ and insert8 ing ‘‘that Trust Fund, except as provided in sec9 tion 9504(c) of the Internal Revenue Code of 

10 1986’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by paragraph (1) take effect on October 1, 2004. 

13 SEC. 4523. DIVISION OF ANNUAL APPROPRIATIONS. 

14 Section 4 (16 U.S.C. 777c) is amended— 

15 (1) by striking subsections (a) through (d) and 

16 redesignating subsections (e), (f), and (g) as sub17 sections (b), (c), and (d); 

18 (2) by inserting before subsection (b), as redesig19 nated, the following: 

20 ‘‘(a) IN GENERAL.—For fiscal years 2004 through 

21 2009, each annual appropriation made in accordance with 

22 the provisions of section 3 of this title shall be distributed 

23 as follows: 

24 ‘‘(1) COASTAL WETLANDS.—18 percent to the 

25 Secretary of the Interior for distribution as provided 
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1 in the Coastal Wetlands Planning, Protection, and 

2 Restoration Act (16 U.S.C. 3951 et seq.). 

3 ‘‘(2) BOATING SAFETY.—18 percent to the Sec4 retary of Homeland Security for State recreational 

5 boating safety programs under section 13106 of title 

6 46, United States Code. 

7 ‘‘(3) CLEAN VESSEL ACT.—1.9 percent to the 

8 Secretary of the Interior for qualified projects under 

9 section 5604(c) of the Clean Vessel Act of 1992 (33 

10 U.S.C. 1322 note). 

11 ‘‘(4) BOATING INFRASTRUCTURE.—1.9 percent to 

12 the Secretary of the Interior for obligation for quali13 fied projects under section 7404(d) of the Sportfishing 

14 and Boating Safety Act of 1998 (16 U.S.C. 777g– 

15 1(d)). 

16 ‘‘(5) NATIONAL OUTREACH AND COMMUNICA17 TIONS.—1.9 percent to the Secretary of the Interior 

18 for the National Outreach and Communications Pro19 gram under section 8(d) of this title. Such amounts 

20 shall remain available for 3 fiscal years, after which 

21 any portion thereof that is unobligated by the Sec22 retary for that program may be expended by the Sec23 retary under subsection (b) of this section. 

24 ‘‘(6) SET-ASIDE FOR EXPENSES FOR ADMINIS25 TRATION OF THIS CHAPTER.— 
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1 ‘‘(A) IN GENERAL.—2.1 percent to the Sec2 retary of the Interior for expenses for adminis3 tration incurred in implementation of this title, 

4 in accordance with this section, section 9, and 

5 section 14 of this title. 

6 ‘‘(B) APPORTIONMENT OF UNOBLIGATED

7 FUNDS.—If any portion of the amount made 

8 available to the Secretary under subparagraph 

9 (A) remains unexpended and unobligated at the 

10 end of a fiscal year, that portion shall be appor11 tioned among the States, on the same basis and 

12 in the same manner as other amounts made 

13 available under this title are apportioned among 

14 the States under subsection (b) of this section, 

15 within 60 days after the end of that fiscal year. 

16 Any amount apportioned among the States 

17 under this subparagraph shall be in addition to 

18 any amounts otherwise available for apportion19 ment among the States under subsection (b) for 

20 the fiscal year.’’; 

21 (3) by striking ‘‘of the Interior, after the dis22 tribution, transfer, use, and deduction under sub23 sections (a), (b), (c), and (d), respectively, and after 

24 deducting amounts used for grants under section 14, 

25 shall apportion the remainder’’ in subsection (b), as 
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1 redesignated, and inserting ‘‘shall apportion 55.3 per2 cent’’; 

3 (4) by striking ‘‘per centum’’ each place it ap4 pears in subsection (b), as redesignated, and inserting 

5 ‘‘percent’’; 

6 (5) by striking ‘‘subsections (a), (b)(3)(A), 

7 (b)(3)(B), and (c)’’ in paragraph (1) of subsection 

8 (d), as redesignated, and inserting ‘‘paragraphs (1), 

9 (3), (4), and (5) of subsection (a)’’; and 

10 (6) by adding at the end the following: 

11 ‘‘(e) TRANSFER OF CERTAIN FUNDS.—Amounts avail12 able under paragraphs (3) and (4) of subsection (a) that 

13 are unobligated by the Secretary after 3 fiscal years shall 

14 be transferred to the Secretary of Homeland Security and 

15 shall be expended for State recreational boating safety pro16 grams under section 13106(a) of title 46, United States 

17 Code.’’. 

18 SEC. 4524. MAINTENANCE OF PROJECTS. 

19 Section 8 (16 U.S.C. 777g) is amended— 

20 (1) by striking ‘‘in carrying out the research 

21 program of the Fish and Wildlife Service in respect 

22 to fish of material value for sport or recreation.’’ in 

23 subsection (b)(2) and inserting ‘‘to supplement the 

24 55.3 percent of each annual appropriation to be ap-
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1 portioned among the States under section 4(b) of this 

2 title.’’; and 

3 (2) by striking ‘‘subsection (c) or (d) of section 

4 4’’ in subsection (d)(3) and inserting ‘‘paragraph (5) 

5 or (6) of section 4(a)’’. 

6 SEC. 4525. BOATING INFRASTRUCTURE. 

7 Section 7404(d)(1) of the Sportfishing and Boating 

8 Safety Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by 

9 striking ‘‘section 4(b)(3)(B)’’ and inserting ‘‘section 

10 4(a)(4)’’. 

11 SEC. 4526. REQUIREMENTS AND RESTRICTIONS CON12 CERNING USE OF AMOUNTS FOR EXPENSES 

13 FOR ADMINISTRATION. 

14 Section 9 (16 U.S.C. 777h) is amended— 

15 (1) by striking ‘‘section 4(d)(1)’’ in subsection 

16 (a) and inserting ‘‘section 4(a)(6)’’; and 

17 (2) by striking ‘‘section 4(d)(1)’’ in subsection 

18 (b)(1) and inserting ‘‘section 4(a)(6)’’. 

19 SEC. 4527. PAYMENTS OF FUNDS TO AND COOPERATION 

20 WITH PUERTO RICO, THE DISTRICT OF CO21 LUMBIA, GUAM, AMERICAN SAMOA, THE COM22 MONWEALTH OF THE NORTHERN MARIANA 

23 ISLANDS, AND THE VIRGIN ISLANDS. 

24 Section 12 (16 U.S.C. 777k) is amended by striking 

25 ‘‘in carrying on the research program of the Fish and Wild-
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1 life Service in respect to fish of material value for sport 

2 or recreation.’’ and inserting ‘‘to supplement the 55.3 per3 cent of each annual appropriation to be apportioned among 

4 the States under section 4(b) of this title.’’. 

5 SEC. 4528. MULTISTATE CONSERVATION GRANT PROGRAM. 

6 Section 14 (16 U.S.C. 777m) is amended— 

7 (1) by striking so much of subsection (a) as pre8 cedes paragraph (2) and inserting the following: 

9 ‘‘(a) IN GENERAL.— 

10 ‘‘(1) AMOUNT FOR GRANTS.—For each of fiscal 

11 years 2004 through 2009, 0.9 percent of each annual 

12 appropriation made in accordance with the provi13 sions of section 3 of this title shall be distributed to 

14 the Secretary of the Interior for making multistate 

15 conservation project grants in accordance with this 

16 section.’’; 

17 (2) by striking ‘‘section 4(e)’’ each place it ap18 pears in subsection (a)(2)(B) and inserting ‘‘section 

19 4(b)’’; and 

20 (3) by striking ‘‘Of the balance of each annual 

21 appropriation made under section 3 remaining after 

22 the distribution and use under subsections (a), (b), 

23 and (c) of section 4 for each fiscal year and after de24 ducting amounts used for grants under subsection 

25 (a)—’’ in subsection (e) and inserting ‘‘Of amounts 
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1 made available under section 4(a)(6) for each fiscal 

2 year—’’. 

3 PART II—CLEAN VESSEL ACT AMENDMENTS 

4 SEC. 4541. GRANT PROGRAM. 

5 Section 5604(c)(2) of the Clean Vessel Act of 1992 (33 

6 U.S.C. 1322 note) is amended— 

7 (1) by striking subparagraph (A); and 

8 (2) by redesignating subparagraphs (B) and (C) 

9 as subparagraphs (A) and (B), respectively. 

10 PART III—RECREATIONAL BOATING SAFETY 

11 PROGRAM AMENDMENTS 

12 SEC. 4561. STATE MATCHING FUNDS REQUIREMENT. 

13 Section 13103(b) of title 46, United States Code, is 

14 amended by striking ‘‘one-half’’ and inserting ‘‘75 percent’’. 

15 SEC. 4562. AVAILABILITY OF ALLOCATIONS. 

16 Section 13104(a) of title 46, United States Code, is 

17 amended— 

18 (1) by striking ‘‘2 years’’ in paragraph (1) and 

19 inserting ‘‘3 years’’; and 

20 (2) by striking ‘‘2-year’’ in paragraph (2) and 

21 inserting ‘‘3-year’’. 
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1 SEC. 4563. AUTHORIZATION OF APPROPRIATIONS FOR 

2 STATE RECREATIONAL BOATING SAFETY PRO3 GRAMS. 

4 Section 13106(c) of title 46, United States Code, is 

5 amended— 

6 (1) by striking ‘‘Secretary of Transportation 

7 under paragraphs (2) and (3) of section 4(b)’’ and in8 serting ‘‘Secretary under subsections (a)(2) and (e) of 

9 section 4’’; and 

10 (2) by inserting ‘‘a minimum of’’ before 

11 ‘‘$2,083,333’’. 

12 SEC. 4564. MAINTENANCE OF EFFORT FOR STATE REC13 REATIONAL BOATING SAFETY PROGRAMS. 

14 (a) IN GENERAL.—Chapter 131 of title 46, United 

15 States Code, is amended by inserting after section 13106 

16 the following: 

17 ‘‘§ 13107. Maintenance of effort for State recreational 

18 boating safety programs 

19 ‘‘(a) IN GENERAL.—The amount payable to a State 

20 for a fiscal year from an allocation under section 13103 

21 of this chapter shall be reduced if the usual amounts ex22 pended by the State for the State’s recreational boating safe23 ty program, as determined under section 13105 of this 

24 chapter, for the previous fiscal year is less than the average 

25 of the total of such expenditures for the 3 fiscal years imme26 diately preceding that previous fiscal year. The reduction 
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1 shall be proportionate, as a percentage, to the amount by 

2 which the level of State expenditures for such previous fiscal 

3 year is less than the average of the total of such expenditures 

4 for the 3 fiscal years immediately preceding that previous 

5 fiscal year. 

6 ‘‘(b) REDUCTION OF THRESHHOLD.—If the total 

7 amount available for allocation and distribution under this 

8 chapter in a fiscal year for all participating State rec9 reational boating safety programs is less than such amount 

10 for the preceding fiscal year, the level of State expenditures 

11 required under subsection (a) of this section for the pre12 ceding fiscal year shall be decreased proportionately. 

13 ‘‘(c) WAIVER.— 

14 ‘‘(1) IN GENERAL.—Upon the written request of 

15 a State, the Secretary may waive the provisions of 

16 subsection (a) of this section for 1 fiscal year if the 

17 Secretary determines that a reduction in expenditures 

18 for the State’s recreational boating safety program is 

19 attributable to a non- selective reduction in expendi20 tures for the programs of all Executive branch agen21 cies of the State government, or for other reasons if 

22 the State demonstrates to the Secretary’s satisfaction 

23 that such waiver is warranted. 
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1 ‘‘(2) 30-DAY DECISION.—The Secretary shall ap2 prove or deny a request for a waiver not later than 

3 30 days after the date the request is received.’’. 

4 (b) CONFORMING AMENDMENT.—The chapter analysis 

5 for chapter 131 of title 46, United States Code, is amended 

6 by inserting after the item relating to section 13106 the fol7 lowing: 

‘‘13107. Maintenance of effort for State recreational boating safety programs.’’. 

8 PART IV—MISCELLANEOUS 

9 SEC. 4581. TECHNICAL CORRECTION TO HOMELAND SECU10 RITY ACT. 

11 Section 1511(e)(2) of the Homeland Security Act of 

12 2002 (Pub. L. 107-296) is amended by striking ‘‘and to any 

13 funds provided to the Coast Guard from the Aquatic Re14 sources Trust Fund of the Highway Trust Fund for boating 

15 safety programs.’’ and inserting ‘‘and any funds provided 

16 to the Coast Guard from the Highway Trust Fund and 

17 transferred into the Sport Fish Restoration Account of the 

18 Aquatic Resources Trust Fund for boating safety pro19 grams.’’. 

20 Subtitle F—Rail Transportation 

21 PART I—AMTRAK 

22 SEC. 4601. AUTHORIZATION OF APPROPRIATIONS. 

23 The text of section 24104 of title 49, United States 

24 Code, is amended to read as follows: 
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1 ‘‘There are authorized to be appropriated to the Sec2 retary of Transportation $2,000,000,000 for each of fiscal 

3 years 2004, 2005, 2006, 2007, 2008, and 2009 for the ben4 efit of Amtrak for operating expenses.’’. 

5 SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORA6 TION. 

7 There is established a nonprofit corporation, to be 

8 known as the ‘‘Build America Corporation’’. The Build 

9 America Corporation is not an agency or establishment of 

10 the United States Government. The purpose of the Corpora11 tion is to support qualified projects described in section 

12 4603(c)(2) through the issuance of Build America bonds. 

13 The Corporation shall be subject, to the extent consistent 

14 with this section, to the laws of the State of Delaware appli15 cable to corporations not for profit. 

16 SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRA17 STRUCTURE. 

18 (a) USE OF BOND PROCEEDS.—The proceeds from the 

19 sale of— 

20 (1) any bonds authorized, issued, or guaranteed 

21 by the Federal Government that are available to fund 

22 passenger rail projects pursuant to any Federal law 

23 (enacted before, on, or after the date of the enactment 

24 of this Act), and 
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1 (2) any Build America bonds issued by the 

2 Build America Corporation as authorized by section 

3 4602, 

4 may be used to fund a qualified project if the Secretary 

5 of Transportation determines that the qualified project is 

6 a cost-effective alternative for efficiently maximizing mobil7 ity of individuals and goods. 

8 (b) COMPLIANCE OF BENEFICIARIES WITH CERTAIN

9 STANDARDS.—A recipient of proceeds of a grant, loan, Fed10 eral tax-credit bonds, or any other form of financial assist11 ance provided under this title shall comply with the stand12 ards described in section 24312 of title 49, United States 

13 Code, as in effect on June 25, 2003, with respect to any 

14 qualified project described in subsection (c)(1) in the same 

15 manner that the National Passenger Railroad Corporation 

16 is required to comply with such standards for construction 

17 work financed under an agreement entered into under sec18 tion 24308(a) of such title. 

19 (c) QUALIFIED PROJECT DEFINED.—In this section— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the term ‘‘qualified project’’ means any 

22 transportation infrastructure project of any govern23 mental unit or other person that is proposed by a 

24 State, including a highway project, a transit system 
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1 project, a railroad project, an airport project, a port 

2 project, and an inland waterways project. 

3 (2) BUILD AMERICA CORPORATION PROJECTS.— 

4 (A) IN GENERAL.—With respect to any 

5 Build America bonds issued by the Build Amer6 ica Corporation as authorized by section 4602, 

7 the term ‘‘qualified project’’ means any— 

8 (i) qualified highway project, 

9 (ii) qualified public transportation 

10 project, and 

11 (iii) congestion relief project, 

12 proposed by 1 or more States and approved by 

13 the Build America Corporation, which meets the 

14 requirements under clauses (i), (ii), and (iii) of 

15 subparagraph (D). 

16 (B) QUALIFIED HIGHWAY PROJECT.—The 

17 term ‘‘qualified highway project’’ means a 

18 project for highway facilities or other facilities 

19 which are eligible for assistance under title 23, 

20 United States Code. 

21 (C) QUALIFIED PUBLIC TRANSPORTATION

22 PROJECT.—The term ‘‘qualified public transpor23 tation project’’ means a project for public trans24 portation facilities or other facilities which are 
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1 eligible for assistance under chapter 53 of title 

2 49, United States Code. 

3 (D) CONGESTION RELIEF PROJECT.—The 

4 term ‘‘congestion relief project’’ means an inter5 modal freight transfer facility, freight rail facil6 ity, freight movement corridor, intercity pas7 senger rail or facility, intercity bus vehicle or fa8 cility, border crossing facility, or other public or 

9 private facility approved as a congestion relief 

10 project by the Secretary of Transportation. In 

11 making such approvals, the Secretary of Trans12 portation shall— 

13 (i) consider the economic, environ14 mental, mobility, and national security im15 provements to be realized through the 

16 project, and 

17 (ii) give preference to projects with na18 tional or regional significance, including 

19 any projects sponsored by a coalition of 

20 States or a combination of States and pri21 vate sector entities, in terms of generating 

22 economic benefits, supporting international 

23 commerce, or otherwise enhancing the na24 tional transportation system. 
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1 (D) ADDITIONAL REQUIREMENTS FOR

2 QUALIFIED PROJECTS.—For purposes of sub3 paragraph (A)— 

4 (i) COSTS OF QUALIFIED PROJECTS.— 

5 The requirement of this clause is met if the 

6 costs of the qualified project funded by 

7 Build America bonds only relate to capital 

8 investments in depreciable assets and do not 

9 include any costs relating to operations, 

10 maintenance, or rolling stock. 

11 (ii) APPLICABILITY OF FEDERAL

12 LAW.—The requirement of this clause is met 

13 if the requirements of any Federal law, in14 cluding titles 23, 40, and 49 of the United 

15 States Code, which would otherwise apply 

16 to projects to which the United States is a 

17 party or to funds made available under 

18 such law and projects assisted with those 

19 funds are applied to— 

20 (I) funds made available under 

21 Build America bonds for similar quali22 fied projects, and 

23 (II) similar qualified projects as24 sisted by the Build America Corpora25 tion through the use of such funds. 
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1 (iii) UTILIZATION OF UPDATED CON2 STRUCTION TECHNOLOGY FOR QUALIFIED

3 PROJECTS.—The requirement of this clause 

4 is met if the appropriate State agency relat5 ing to the qualified project has updated its 

6 accepted construction technologies to match 

7 a list prescribed by the Secretary of Trans8 portation and in effect on the date of the 

9 approval of the project as a qualified 

10 project. 

11 PART II—RAILROAD TRACK MODERNIZATION 

12 SEC. 4631. SHORT TITLE. 

13 This part may be cited as the ‘‘Railroad Track Mod14 ernization Act of 2004’’. 

15 SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK. 

16 (a) AUTHORITY.—Chapter 223 of title 49, United 

17 States Code, is amended to read as follows: 

18 ‘‘CHAPTER 223—CAPITAL GRANTS FOR 

19 RAILROAD TRACK 

‘‘Sec. 

‘‘22301. Capital grants for railroad track. 

20 ‘‘§ 22301. Capital grants for railroad track 

21 ‘‘(a) ESTABLISHMENT OF PROGRAM.— 

22 ‘‘(1) ESTABLISHMENT.—The Secretary of Trans23 portation shall establish a program of capital grants 

24 for the rehabilitation, preservation, or improvement of 
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1 railroad track (including roadbed, bridges, and re2 lated track structures) of class II and class III rail3 roads. Such grants shall be for rehabilitating, pre4 serving, or improving track used primarily for freight 

5 transportation to a standard ensuring that the track 

6 can be operated safely and efficiently, including 

7 grants for rehabilitating, preserving, or improving 

8 track to handle 286,000 pound rail cars. Grants may 

9 be provided under this chapter— 

10 ‘‘(A) directly to the class II or class III 

11 railroad; or 

12 ‘‘(B) with the concurrence of the class II or 

13 class III railroad, to a State or local govern14 ment. 

15 ‘‘(2) STATE COOPERATION.—Class II and class 

16 III railroad applicants for a grant under this chapter 

17 are encouraged to utilize the expertise and assistance 

18 of State transportation agencies in applying for and 

19 administering such grants. State transportation agen20 cies are encouraged to provide such expertise and as21 sistance to such railroads. 

22 ‘‘(3) REGULATIONS.— 

23 ‘‘(A) IN GENERAL.—The Secretary shall 

24 prescribe regulations to carry out the program 

25 under this section. 
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1 ‘‘(B) CRITERIA.—In developing the regula2 tions, the Secretary shall establish criteria 

3 that— 

4 ‘‘(i) condition the award of a grant to 

5 a railroad on reasonable assurances by the 

6 railroad that the facilities to be rehabili7 tated and improved will be economically 

8 and efficiently utilized; 

9 ‘‘(ii) ensure that the award of a grant 

10 is justified by present and probable future 

11 demand for rail services by the railroad to 

12 which the grant is to be awarded; 

13 ‘‘(iii) ensure that consideration is 

14 given to projects that are part of a State15 sponsored rail plan; and 

16 ‘‘(iv) ensure that all such grants are 

17 awarded on a competitive basis. 

18 ‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum 

19 Federal share for carrying out a project under this section 

20 shall be 80 percent of the project cost. The non-Federal share 

21 may be provided by any non-Federal source in cash, equip22 ment, or supplies. Other in-kind contributions may be ap23 proved by the Secretary on a case by case basis consistent 

24 with this chapter. 
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1 ‘‘(c) PROJECT ELIGIBILITY.—For a project to be eligi2 ble for assistance under this section the track must have 

3 been operated or owned by a class II or class III railroad 

4 as of the date of the enactment of the Railroad Track Mod5 ernization Act of 2004. 

6 ‘‘(d) USE OF FUNDS.—Grants provided under this sec7 tion shall be used to implement track capital projects as 

8 soon as possible. In no event shall grant funds be contrac9 tually obligated for a project later than the end of the third 

10 Federal fiscal year following the year in which the grant 

11 was awarded. Any funds not so obligated by the end of such 

12 fiscal year shall be returned to the Secretary for realloca13 tion. 

14 ‘‘(e) ADDITIONAL PURPOSE.—In addition to making 

15 grants for projects as provided in subsection (a), the Sec16 retary may also make grants to supplement direct loans 

17 or loan guarantees made under title V of the Railroad Revi18 talization and Regulatory Reform Act of 1976 (45 U.S.C. 

19 822(d)), for projects described in the last sentence of section 

20 502(d) of such title. Grants made under this subsection may 

21 be used, in whole or in part, for paying credit risk pre22 miums, lowering rates of interest, or providing for a holi23 day on principal payments. 

24 ‘‘(f) EMPLOYEE PROTECTION.—The Secretary shall re25 quire as a condition of any grant made under this section 
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1 that the recipient railroad provide a fair arrangement at 

2 least as protective of the interests of employees who are af3 fected by the project to be funded with the grant as the terms 

4 imposed under section 11326(a), as in effect on the date 

5 of the enactment of the Railroad Track Modernization Act 

6 of 2001. 

7 ‘‘(g) LABOR STANDARDS.— 

8 ‘‘(1) PREVAILING WAGES.—The Secretary shall 

9 ensure that laborers and mechanics employed by con10 tractors and subcontractors in construction work fi11 nanced by a grant made under this section will be 

12 paid wages not less than those prevailing on similar 

13 construction in the locality, as determined by the Sec14 retary of Labor under the Act of March 3, 1931 

15 (known as the Davis-Bacon Act; 40 U.S.C. 276a et 

16 seq.). The Secretary shall make a grant under this 

17 section only after being assured that required labor 

18 standards will be maintained on the construction 

19 work. 

20 ‘‘(2) WAGE RATES.—Wage rates in a collective 

21 bargaining agreement negotiated under the Railway 

22 Labor Act (45 U.S.C. 151 et seq.) are deemed for pur23 poses of this subsection to comply with the Act of 

24 March 3, 1931 (known as the Davis-Bacon Act; 40 

25 U.S.C. 276a et seq.).’’. 
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1 (b) CONFORMING AMENDMENT.—The item relating to 

2 chapter 223 in the table of chapters of subtitle V of title 

3 49, United States Code, is amended to read as follows: 

‘‘223. CAPITAL GRANTS FOR RAILROAD TRACK ............................... 22301’’. 

4 SEC. 4633. REGULATIONS. 

5 (a) REGULATIONS.—The Secretary of Transporation 

6 shall prescribe under subsection (a)(3) of section 22301 of 

7 title 49, United States Code (as added by section 4601), 

8 interim and final regulations for the administration of the 

9 grant program under such section as follows: 

10 (1) INTERIM REGULATIONS.—The Secretary shall 

11 prescribe the interim regulations to implement the 

12 program not later than December 31, 2003. 

13 (2) FINAL REGULATIONS.—The Secretary shall 

14 prescribe the final regulations not later than October 

15 1, 2004. 

16 (b) INAPPLICABILITY OF RULEMAKING PROCEDURE TO

17 INTERIM REGULATIONS.—Subchapter II of chapter 5 of 

18 title 5, United States Code, shall not apply to the issuance 

19 of an interim regulation or to any amendment of such an 

20 interim regulation. 

21 (c) CRITERIA.—The requirement for the establishment 

22 of criteria under subparagraph (B) of section 22301(a)(3) 

23 of title 49, United States Code, applies to the interim regu24 lations as well as to the final regulations. 
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1 SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS. 

2 (a) REQUIREMENT FOR STUDY.—The Secretary of 

3 Transportation shall conduct a study of the projects carried 

4 out with grant assistance under section 22301 of title 49, 

5 United States Code (as added by section 4601), to determine 

6 the public interest benefits associated with the light density 

7 railroad networks in the States and their contribution to 

8 a multimodal transportation system. 

9 (b) REPORT.—Not later than March 31, 2004, the Sec10 retary shall submit to Congress a report on the results of 

11 the study under subsection (a). The report shall include any 

12 recommendations that the Secretary considers appropriate 

13 regarding the eligibility of light density rail networks for 

14 Federal infrastructure financing. 

15 SEC. 4635. AUTHORIZATION OF APPROPRIATIONS. 

16 There are authorized to be appropriated to the Sec17 retary of Transportation $350,000,000 for each of fiscal 

18 years 2004, 2005, and 2006 for carrying out section 22301 

19 of title 49, United States Code (as added by section 4601). 

20 PART III—OTHER RAIL TRANSPORTATION21 RELATED PROVISIONS 

22 SEC. 4661. CAPITAL GRANTS FOR RAIL LINE RELOCATION 

23 PROJECTS. 

24 (a) ESTABLISHMENT OF PROGRAM.— 
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1 (1) PROGRAM REQUIREMENTS.—Chapter 201 of 

2 title 49, United States Code, is amended by adding 

3 at the end of subchapter II the following: 

4 ‘‘§ 20154. Capital grants for rail line relocation 

5 projects 

6 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

7 of Transportation shall carry out a grant program to pro8 vide financial assistance for local rail line relocation 

9 projects. 

10 ‘‘(b) ELIGIBILITY.—A State is eligible for a grant 

11 under this section for any project for the improvement of 

12 the route or structure of a rail line passing through a mu13 nicipality of the State that— 

14 ‘‘(1) is carried out for the purpose of mitigating 

15 the adverse effects of rail traffic on safety, motor vehi16 cle traffic flow, or economic development in the mu17 nicipality; 

18 ‘‘(2) involves a lateral or vertical relocation of 

19 any portion of the rail line within the municipality 

20 to avoid a closing of a grade crossing or the construc21 tion of a road underpass or overpass; and 

22 ‘‘(3) meets the costs-benefits requirement set forth 

23 in subsection (c). 

24 ‘‘(c) COSTS-BENEFITS REQUIREMENT.—A grant may 

25 be awarded under this section for a project for the relocation 
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1 of a rail line only if the benefits of the project for the period 

2 equal to the estimated economic life of the relocated rail line 

3 exceed the costs of the project for that period, as determined 

4 by the Secretary considering the following factors: 

5 ‘‘(1) The effects of the rail line and the rail traf6 fic on motor vehicle and pedestrian traffic, safety, 

7 and area commerce if the rail line were not so relo8 cated. 

9 ‘‘(2) The effects of the rail line, relocated as pro10 posed, on motor vehicle and pedestrian traffic, safety, 

11 and area commerce. 

12 ‘‘(3) The effects of the rail line, relocated as pro13 posed, on the freight and passenger rail operations on 

14 the rail line. 

15 ‘‘(d) CONSIDERATIONS FOR APPROVAL OF GRANT AP16 PLICATIONS.—In addition to considering the relationship 

17 of benefits to costs in determining whether to award a grant 

18 to an eligible State under this section, the Secretary shall 

19 consider the following factors: 

20 ‘‘(1) The capability of the State to fund the rail 

21 line relocation project without Federal grant funding. 

22 ‘‘(2) The requirement and limitation relating to 

23 allocation of grant funds provided in subsection (e). 

24 ‘‘(3) Equitable treatment of the various regions 

25 of the United States. 
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1 ‘‘(e) ALLOCATION REQUIREMENTS.— 

2 ‘‘(1) GRANTS NOT GREATER THAN

3 $20,000,000.—At least 50 percent of all grant funds 

4 awarded under this section out of funds appropriated 

5 for a fiscal year shall be provided as grant awards of 

6 not more than $20,000,000 each. 

7 ‘‘(2) LIMITATION PER PROJECT.—Not more than 

8 25 percent of the total amount available for carrying 

9 out this section for a fiscal year may be provided for 

10 any 1 project in that fiscal year. 

11 ‘‘(f) FEDERAL SHARE.—The total amount of a grant 

12 awarded under this section for a rail line relocation project 

13 shall be 90 percent of the shared costs of the project, as deter14 mined under subsection (g)(4). 

15 ‘‘(g) STATE SHARE.— 

16 ‘‘(1) PERCENTAGE.—A State shall pay 10 per17 cent of the shared costs of a project that is funded in 

18 part by a grant awarded under this section. 

19 ‘‘(2) FORMS OF CONTRIBUTIONS.—The share re20 quired by paragraph (1) may be paid in cash or in 

21 kind. 

22 ‘‘(3) IN-KIND CONTRIBUTIONS.—The in-kind con23 tributions that are permitted to be counted under 

24 paragraph (2) for a project for a State are as follows: 
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1 ‘‘(A) A contribution of real property or tan2 gible personal property (whether provided by the 

3 State or a person for the State). 

4 ‘‘(B) A contribution of the services of em5 ployees of the State, calculated on the basis of 

6 costs incurred by the State for the pay and bene7 fits of the employees, but excluding overhead and 

8 general administrative costs. 

9 ‘‘(C) A payment of any costs that were in10 curred for the project before the filing of an ap11 plication for a grant for the project under this 

12 section, and any in-kind contributions that were 

13 made for the project before the filing of the appli14 cation, if and to the extent that the costs were in15 curred or in-kind contributions were made, as 

16 the case may be, to comply with a provision of 

17 a statute required to be satisfied in order to 

18 carry out the project. 

19 ‘‘(4) COSTS NOT SHARED.— 

20 ‘‘(A) IN GENERAL.—For the purposes of 

21 subsection (f) and this subsection, the shared 

22 costs of a project in a municipality do not in23 clude any cost that is defrayed with any funds 

24 or in-kind contribution that a source other than 

25 the municipality makes available for the use of 
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1 the municipality without imposing at least 1 of 

2 the following conditions: 

3 ‘‘(i) The condition that the munici4 pality use the funds or contribution only for 

5 the project. 

6 ‘‘(ii) The condition that the avail7 ability of the funds or contribution to the 

8 municipality is contingent on the execution 

9 of the project. 

10 ‘‘(B) DETERMINATIONS OF THE SEC11 RETARY.—The Secretary shall determine the 

12 amount of the costs, if any, that are not shared 

13 costs under this paragraph and the total amount 

14 of the shared costs. A determination of the Sec15 retary shall be final. 

16 ‘‘(h) MULTISTATE AGREEMENTS TO COMBINE

17 AMOUNTS.—Two or more States (not including polit18 ical subdivisions of States) may, pursuant to an 

19 agreement entered into by the States, combine any 

20 part of the amounts provided through grants for a 

21 project under this section if— 

22 ‘‘(1) the project will benefit each of the 

23 States entering into the agreement; and 

24 ‘‘(2) the agreement is not a violation of a 

25 law of any such State. 
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1 ‘‘(i) REGULATIONS.—The Secretary shall prescribe 

2 regulations for carrying out this section. 

3 ‘‘(j) STATE DEFINED.—In this section, the term ‘State’ 

4 includes, except as otherwise specifically provided, a polit5 ical subdivision of a State. 

6 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to the Secretary for use 

8 in carrying out this section $350,000,000 for each of the 

9 fiscal years 2004 through 2008.’’. 

10 (2) CLERICAL AMENDMENT.—The chapter anal11 ysis for such chapter is amended by adding at the end 

12 the following: 

‘‘20154. Capital grants for rail line relocation projects.’’. 

13 (b) REGULATIONS.— 

14 (1) INTERIM REGULATIONS.—Not later than Oc15 tober 1, 2003, the Secretary of Transportation shall 

16 issue temporary regulations to implement the grant 

17 program under section 20154 of title 49, United 

18 States Code, as added by subsection (a). Subchapter 

19 II of chapter 5 of title 5, United States Code, shall 

20 not apply to the issuance of a temporary regulation 

21 under this subsection or of any amendment of such a 

22 temporary regulation. 

23 (2) FINAL REGULATIONS.—Not later than April 

24 1, 2004, the Secretary shall issue final regulations 

25 implementing the program. 
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1 SEC. 4662. USE OF CONGESTION MITIGATION AND AIR 

2 QUALITY IMPROVEMENT FUNDS FOR BOSTON 

3 TO PORTLAND PASSENGER RAIL SERVICE. 

4 Notwithstanding any other provision of law, funds au5 thorized to be appropriated under section 1101(5) that are 

6 made available to the State of Maine may be used to sup7 port, through December 15, 2006, the operation of passenger 

8 rail service between Boston, Massachusetts, and Portland, 

9 Maine. 

10 TITLE V—HIGHWAY REAUTHOR11 IZATION AND EXCISE TAX 

12 SIMPLIFICATION 

13 SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE. 

14 (a) SHORT TITLE.—This title may be cited as the 

15 ‘‘Highway Reauthorization and Excise Tax Simplification 

16 Act of 2004’’. 

17 (b) AMENDMENT OF 1986 CODE.—Except as otherwise 

18 expressly provided, whenever in this title an amendment 

19 or repeal is expressed in terms of an amendment to, or re20 peal of, a section or other provision, the reference shall be 

21 considered to be made to a section or other provision of the 

22 Internal Revenue Code of 1986. 
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1 Subtitle A—Trust Fund 

2 Reauthorization 

3 SEC. 5001. EXTENSION OF HIGHWAY TRUST FUND AND 

4 AQUATIC RESOURCES TRUST FUND EXPENDI5 TURE AUTHORITY AND RELATED TAXES. 

6 (a) HIGHWAY TRUST FUND EXPENDITURE AUTHOR7 ITY.— 

8 (1) HIGHWAY ACCOUNT.—Paragraph (1) of sec9 tion 9503(c) (relating to transfers from Highway 

10 Trust Fund for certain repayments and credits) is 

11 amended— 

12 (A) in the matter before subparagraph (A), 

13 by striking ‘‘March 1, 2004’’ and inserting ‘‘Oc14 tober 1, 2009’’, 

15 (B) by striking ‘‘or’’ at the end of subpara16 graph (E), 

17 (C) by striking the period at the end of sub18 paragraph (F) and inserting ‘‘, or’’, 

19 (D) by inserting after subparagraph (F), 

20 the following new subparagraph: 

21 ‘‘(G) authorized to be paid out of the High22 way Trust Fund under the Safe, Accountable, 

23 Flexible, and Efficient Transportation Equity 

24 Act of 2004.’’, and 
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1 (E) in the matter after subparagraph (G), 

2 as added by subparagraph (D), by striking 

3 ‘‘Surface Transportation Extension Act of 2003’’ 

4 and inserting ‘‘Safe, Accountable, Flexible, and 

5 Efficient Transportation Equity Act of 2004’’. 

6 (2) MASS TRANSIT ACCOUNT.—Paragraph (3) of 

7 section 9503(e) (relating to establishment of Mass 

8 Transit Account) is amended— 

9 (A) in the matter before subparagraph (A), 

10 by striking ‘‘March 1, 2004’’ and inserting ‘‘Oc11 tober 1, 2009’’, 

12 (B) by striking ‘‘or’’ at the end of subpara13 graph (C), 

14 (C) by striking the period at the end of sub15 paragraph (D) and inserting ‘‘, or’’, 

16 (D) by inserting after subparagraph (D), 

17 the following new subparagraph: 

18 ‘‘(E) the Safe, Accountable, Flexible, and 

19 Efficient Transportation Equity Act of 2004,’’, 

20 and 

21 (E) in the matter after subparagraph (E), 

22 as added by subparagraph (D), by striking 

23 ‘‘Surface Transportation Extension Act of 2003’’ 

24 and inserting ‘‘Safe, Accountable, Flexible, and 

25 Efficient Transportation Equity Act of 2004’’. 
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1 (3) EXCEPTION TO LIMITATION ON TRANS2 FERS.—Subparagraph (B) of section 9503(b)(5) (re3 lating to limitation on transfers to Highway Trust 

4 Fund) is amended by striking ‘‘March 1, 2004’’ and 

5 inserting ‘‘October 1, 2009’’. 

6 (b) AQUATIC RESOURCES TRUST FUND EXPENDITURE

7 AUTHORITY.— 

8 (1) SPORT FISH RESTORATION ACCOUNT.—Para9 graph (2) of section 9504(b) (relating to Sport Fish 

10 Restoration Account) is amended by striking ‘‘Surface 

11 Transportation Extension Act of 2003’’ each place it 

12 appears and inserting ‘‘Safe, Accountable, Flexible, 

13 and Efficient Transportation Equity Act of 2004’’. 

14 (2) BOAT SAFETY ACCOUNT.—Section 9504(c) 

15 (relating to expenditures from Boat Safety Account) 

16 is amended— 

17 (A) by striking ‘‘March 1, 2004’’ and insert18 ing ‘‘October 1, 2009’’, and 

19 (B) by striking ‘‘Surface Transportation 

20 Extension Act of 2003’’ and inserting ‘‘Safe, Ac21 countable, Flexible, and Efficient Transportation 

22 Equity Act of 2004’’. 

23 (3) EXCEPTION TO LIMITATION ON TRANS24 FERS.—Paragraph (2) of section 9504(d) (relating to 

25 limitation on transfers to Aquatic Resources Trust 
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1 Fund) is amended by striking ‘‘March 1, 2004’’ and 

2 inserting ‘‘October 1, 2009’’. 

3 (4) TECHNICAL CORRECTION.—The last sentence 

4 of paragraph (2) of section 9504(b) is amended by 

5 striking ‘‘subparagraph (B)’’, and inserting ‘‘sub6 paragraph (C)’’. 

7 (c) EXTENSION OF TAXES.— 

8 (1) IN GENERAL.—The following provisions are 

9 each amended by striking ‘‘2005’’ each place it ap10 pears and inserting ‘‘2009’’: 

11 (A) Section 4041(a)(1)(C)(iii)(I) (relating 

12 to rate of tax on certain buses). 

13 (B) Section 4041(a)(2)(B) (relating to rate 

14 of tax on special motor fuels). 

15 (C) Section 4041(m)(1)(A) (relating to cer16 tain alcohol fuels produced from natural gas). 

17 (D) Section 4051(c) (relating to termi18 nation of tax on heavy trucks and trailers). 

19 (E) Section 4071(d) (relating to termi20 nation of tax on tires). 

21 (F) Section 4081(d)(1) (relating to termi22 nation of tax on gasoline, diesel fuel, and ker23 osene). 

24 (G) Section 4481(e) (relating to period tax 

25 in effect). 
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1 (H) Section 4482(c)(4) (relating to taxable 

2 period). 

3 (I) Section 4482(d) (relating to special rule 

4 for taxable period in which termination date oc5 curs). 

6 (2) FLOOR STOCKS REFUNDS.—Section 

7 6412(a)(1) (relating to floor stocks refunds) is amend8 ed— 

9 (A) by striking ‘‘2005’’ each place it ap10 pears and inserting ‘‘2009’’, and 

11 (B) by striking ‘‘2006’’ each place it ap12 pears and inserting ‘‘2010’’. 

13 (d) EXTENSION OF CERTAIN EXEMPTIONS.—The fol14 lowing provisions are each amended by striking ‘‘2005’’ and 

15 inserting ‘‘2009’’: 

16 (1) Section 4221(a) (relating to certain tax-free 

17 sales). 

18 (2) Section 4483(g) (relating to termination of 

19 exemptions for highway use tax). 

20 (e) EXTENSION OF DEPOSITS INTO, AND CERTAIN

21 TRANSFERS FROM, TRUST FUND.— 

22 (1) IN GENERAL.—Subsections (b), (c)(2), (c)(3), 

23 (c)(4)(A)(i), and (c)(5)(A) of section 9503 (relating to 

24 the Highway Trust Fund) are amended— 
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1 (A) by striking ‘‘2005’’ each place it ap2 pears and inserting ‘‘2009’’, and 

3 (B) by striking ‘‘2006’’ each place it ap4 pears and inserting ‘‘2010’’. 

5 (2) CONFORMING AMENDMENTS TO LAND AND

6 WATER CONSERVATION FUND.—Section 201(b) of the 

7 Land and Water Conservation Fund Act of 1965 (16 

8 U.S.C. 460l–11(b)) is amended— 

9 (A) by striking ‘‘2003’’ and inserting 

10 ‘‘2007’’, and 

11 (B) by striking ‘‘2004’’ each place it ap12 pears and inserting ‘‘2008’’. 

13 (f) EXTENSION OF TAX BENEFITS FOR QUALIFIED

14 METHANOL AND ETHANOL FUEL PRODUCED FROM

15 COAL.—Section 4041(b)(2) (relating to qualified methanol 

16 and ethanol fuel) is amended— 

17 (1) by striking ‘‘2007’’ in subparagraph (C)(ii) 

18 and inserting ‘‘2010’’, and 

19 (2) by striking ‘‘October 1, 2007’’ in subpara20 graph (D) and inserting ‘‘January 1, 2011’’. 

21 (g) PROHIBITION ON USE OF HIGHWAY ACCOUNT FOR

22 RAIL PROJECTS.—Section 9503(c) (relating to transfers 

23 from Highway Trust Fund for certain repayments and 

24 credits) is amended by adding at the end the following new 

25 paragraph: 
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1 ‘‘(6) PROHIBITION ON USE OF HIGHWAY AC2 COUNT FOR CERTAIN RAIL PROJECTS.—With respect 

3 to rail projects beginning after the date of the enact4 ment of this paragraph, no amount shall be available 

5 from the Highway Account (as defined in subsection 

6 (e)(5)(B)) for any rail project, except for any rail 

7 project involving publicly owned rail facilities or any 

8 rail project yielding a public benefit.’’. 

9 (h) HIGHWAY TRUST FUND EXPENDITURES FOR

10 HIGHWAY USE TAX EVASION PROJECTS.—Section 9503(c), 

11 as amended by subsection (g), is amended to add at the 

12 end the following new paragraph: 

13 ‘‘(7) HIGHWAY USE TAX EVASION PROJECTS.— 

14 From amounts available in the Highway Trust Fund, 

15 there is authorized to be expended— 

16 ‘‘(A) for each fiscal year after 2003 to the 

17 Internal Revenue Service— 

18 ‘‘(i) $30,000,000 for enforcement of fuel 

19 tax compliance, including the per-certifi20 cation of tax-exempt users, 

21 ‘‘(ii) $10,000,000 for Xstars, and 

22 ‘‘(iii) $10,000,000 for xfirs, and 

23 ‘‘(B) for each fiscal year after 2003 to the 

24 Federal Highway Administration, $50,000,000 
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1 to be allocated $1,000,000 to each State to com2 bat fuel tax evasion on the State level.’’. 

3 (i) EFFECTIVE DATE.—The amendments made by and 

4 provisions of this section shall take effect on the date of the 

5 enactment of this Act. 

6 SEC. 5002. FULL ACCOUNTING OF FUNDS RECEIVED BY THE 

7 HIGHWAY TRUST FUND. 

8 (a) IN GENERAL.—Section 9503(c) (relating to trans9 fers from Highway Trust Fund for certain repayments and 

10 credits), as amended by section 5001 of this Act, is amended 

11 by striking paragraph (2) and redesignating paragraphs 

12 (3), (4), (5), (6), and (7) as paragraphs (2), (3), (4), (5), 

13 and (6), respectively. 

14 (b) INTEREST ON UNEXPENDED BALANCES CREDITED

15 TO TRUST FUND.—Section 9503 (relating to the Highway 

16 Trust Fund) is amended by striking subsection (f). 

17 (c) CONFORMING AMENDMENTS.— 

18 (1) Section 9503(b)(4)(D) is amended by strik19 ing ‘‘paragraph (4)(D) or (5)(B)’’ and inserting 

20 ‘‘paragraph (3)(D) or (4)(B)’’. 

21 (2) Paragraph (2) of section 9503(c) (as redesig22 nated by subsection (a)) is amended by adding at the 

23 end the following new sentence: ‘‘The amounts pay24 able from the Highway Trust Fund under this para25 graph shall be determined by taking into account only 
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1 the portion of the taxes which are deposited into the 

2 Highway Trust Fund.’’. 

3 (3) Section 9504(a)(2) is amended by striking 

4 ‘‘section 9503(c)(4), section 9503(c)(5)’’ and inserting 

5 ‘‘section 9503(c)(3), section 9503(c)(4)’’. 

6 (4) Paragraph (2) of section 9504(b), as amend7 ed by section 5001 of this Act, is amended by striking 

8 ‘‘section 9503(c)(5)’’ and inserting ‘‘section 

9 9503(c)(4)’’. 

10 (5) Section 9504(e) is amended by striking ‘‘sec11 tion 9503(c)(4)’’ and inserting ‘‘section 9503(c)(3)’’. 

12 (d) EFFECTIVE DATES.— 

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the amendments made by this section shall 

15 apply to amounts paid for which no transfer from the 

16 Highway Trust Fund has been made before April 1, 

17 2004. 

18 (2) INTEREST CREDITED.—The amendment 

19 made by subsection (b) shall take effect on the date of 

20 the enactment of this Act. 

21 SEC. 5003. MODIFICATION OF ADJUSTMENTS OF APPOR22 TIONMENTS. 

23 (a) IN GENERAL.—Section 9503(d) (relating to adjust24 ments for apportionments) is amended— 
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1 (1) by striking ‘‘24-month’’ in paragraph (1)(B) 

2 and inserting ‘‘48-month’’, and 

3 (2) by striking ‘‘2 YEARS’’’ in the heading for 

4 paragraph (3) and inserting ‘‘4 YEARS’’’. 

5 (b) MEASUREMENT OF NET HIGHWAY RECEIPTS.— 

6 Section 9503(d) is amended by redesignating paragraph (6) 

7 as paragraph (7) and by inserting after paragraph (5) the 

8 following new paragraph: 

9 ‘‘(6) MEASUREMENT OF NET HIGHWAY RE10 CEIPTS.—For purposes of making any estimate under 

11 paragraph (1) of net highway receipts for periods 

12 ending after the date specified in subsection (b)(1), 

13 the Secretary shall treat— 

14 ‘‘(A) each expiring provision of subsection 

15 (b) which is related to appropriations or trans16 fers to the Highway Trust Fund to have been ex17 tended through the end of the 48-month period 

18 referred to in paragraph (1)(B), and 

19 ‘‘(B) with respect to each tax imposed under 

20 the sections referred to in subsection (b)(1), the 

21 rate of such tax during the 48-month period re22 ferred to in paragraph (1)(B) to be the same as 

23 the rate of such tax as in effect on the date of 

24 such estimate.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect on the date of the enactment of this 

3 Act. 

4 Subtitle B—Volumetric Ethanol 

5 Excise Tax Credit 

6 SEC. 5101. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘Volumetric Ethanol 

8 Excise Tax Credit (VEETC) Act of 2004’’. 

9 SEC. 5102. ALCOHOL AND BIODIESEL EXCISE TAX CREDIT 

10 AND EXTENSION OF ALCOHOL FUELS INCOME 

11 TAX CREDIT. 

12 (a) IN GENERAL.—Subchapter B of chapter 65 (relat13 ing to rules of special application) is amended by inserting 

14 after section 6425 the following new section: 

15 ‘‘SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL 

16 MIXTURES. 

17 ‘‘(a) ALLOWANCE OF CREDITS.—There shall be allowed 

18 as a credit against the tax imposed by section 4081 an 

19 amount equal to the sum of— 

20 ‘‘(1) the alcohol fuel mixture credit, plus 

21 ‘‘(2) the biodiesel mixture credit. 

22 ‘‘(b) ALCOHOL FUEL MIXTURE CREDIT.— 

23 ‘‘(1) IN GENERAL.—For purposes of this section, 

24 the alcohol fuel mixture credit is the product of the 

25 applicable amount and the number of gallons of alco-
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1 hol used by the taxpayer in producing any alcohol 

2 fuel mixture for sale or use in a trade or business of 

3 the taxpayer. 

4 ‘‘(2) APPLICABLE AMOUNT.—For purposes of this 

5 subsection— 

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

7 subparagraph (B), the applicable amount is 52 

8 cents (51 cents in the case of any sale or use 

9 after 2004). 

10 ‘‘(B) MIXTURES NOT CONTAINING ETH11 ANOL.—In the case of an alcohol fuel mixture in 

12 which none of the alcohol consists of ethanol, the 

13 applicable amount is 60 cents. 

14 ‘‘(3) ALCOHOL FUEL MIXTURE.—For purposes of 

15 this subsection, the term ‘alcohol fuel mixture’ means 

16 a mixture of alcohol and a taxable fuel which— 

17 ‘‘(A) is sold by the taxpayer producing such 

18 mixture to any person for use as a fuel, 

19 ‘‘(B) is used as a fuel by the taxpayer pro20 ducing such mixture, or 

21 ‘‘(C) is removed from the refinery by a per22 son producing such mixture. 

23 ‘‘(4) OTHER DEFINITIONS.—For purposes of this 

24 subsection— 
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1 ‘‘(A) ALCOHOL.—The term ‘alcohol’ includes 

2 methanol and ethanol but does not include— 

3 ‘‘(i) alcohol produced from petroleum, 

4 natural gas, or coal (including peat), or 

5 ‘‘(ii) alcohol with a proof of less than 

6 190 (determined without regard to any 

7 added denaturants). 

8 Such term also includes an alcohol gallon equiv9 alent of ethyl tertiary butyl ether or other ethers 

10 produced from such alcohol. 

11 ‘‘(B) TAXABLE FUEL.—The term ‘taxable 

12 fuel’ has the meaning given such term by section 

13 4083(a)(1). 

14 ‘‘(5) TERMINATION.—This subsection shall not 

15 apply to any sale, use, or removal for any period 

16 after December 31, 2010. 

17 ‘‘(c) BIODIESEL MIXTURE CREDIT.— 

18 ‘‘(1) IN GENERAL.—For purposes of this section, 

19 the biodiesel mixture credit is the product of the ap20 plicable amount and the number of gallons of bio21 diesel used by the taxpayer in producing any bio22 diesel mixture for sale or use in a trade or business 

23 of the taxpayer. 

24 ‘‘(2) APPLICABLE AMOUNT.—For purposes of this 

25 subsection— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the applicable amount is 50 

3 cents. 

4 ‘‘(B) AMOUNT FOR AGRI-BIODIESEL.—In 

5 the case of any biodiesel which is agri-biodiesel, 

6 the applicable amount is $1.00. 

7 ‘‘(3) BIODIESEL MIXTURE.—For purposes of this 

8 section, the term ‘biodiesel mixture’ means a mixture 

9 of biodiesel and diesel fuel (as defined in section 

10 4083(a)(3)), determined without regard to any use of 

11 kerosene, which— 

12 ‘‘(A) is sold by the taxpayer producing such 

13 mixture to any person for use as a fuel, 

14 ‘‘(B) is used as a fuel by the taxpayer pro15 ducing such mixture, or 

16 ‘‘(C) is removed from the refinery by a per17 son producing such mixture. 

18 ‘‘(4) CERTIFICATION FOR BIODIESEL.—No credit 

19 shall be allowed under this section unless the taxpayer 

20 obtains a certification (in such form and manner as 

21 prescribed by the Secretary) from the producer of the 

22 biodiesel which identifies the product produced and 

23 the percentage of biodiesel and agri-biodiesel in the 

24 product. 
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1 ‘‘(5) OTHER DEFINITIONS.—Any term used in 

2 this subsection which is also used in section 40A shall 

3 have the meaning given such term by section 40A. 

4 ‘‘(6) TERMINATION.—This subsection shall not 

5 apply to any sale, use, or removal for any period 

6 after December 31, 2006. 

7 ‘‘(d) MIXTURE NOT USED AS A FUEL, ETC.— 

8 ‘‘(1) IMPOSITION OF TAX.—If— 

9 ‘‘(A) any credit was determined under this 

10 section with respect to alcohol or biodiesel used 

11 in the production of any alcohol fuel mixture or 

12 biodiesel mixture, respectively, and 

13 ‘‘(B) any person— 

14 ‘‘(i) separates the alcohol or biodiesel 

15 from the mixture, or 

16 ‘‘(ii) without separation, uses the mix17 ture other than as a fuel, 

18 then there is hereby imposed on such person a 

19 tax equal to the product of the applicable 

20 amount and the number of gallons of such alco21 hol or biodiesel. 

22 ‘‘(2) APPLICABLE LAWS.—All provisions of law, 

23 including penalties, shall, insofar as applicable and 

24 not inconsistent with this section, apply in respect of 
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1 any tax imposed under paragraph (1) as if such tax 

2 were imposed by section 4081 and not by this section. 

3 ‘‘(e) COORDINATION WITH EXEMPTION FROM EXCISE

4 TAX.—Rules similar to the rules under section 40(c) shall 

5 apply for purposes of this section.’’. 

6 (b) REGISTRATION REQUIREMENT.—Section 

7 4101(a)(1) (relating to registration), as amended by sec8 tions 5211 and 5242 of this Act, is amended by inserting 

9 ‘‘and every person producing or importing biodiesel (as de10 fined in section 40A(d)(1)) or alcohol (as defined in section 

11 6426(b)(4)(A))’’ after ‘‘4081’’. 

12 (c) ADDITIONAL AMENDMENTS.— 

13 (1) Section 40(c) is amended by striking ‘‘sub14 section (b)(2), (k), or (m) of section 4041, section 

15 4081(c), or section 4091(c)’’ and inserting ‘‘section 

16 4041(b)(2), section 6426, or section 6427(e)’’. 

17 (2) Paragraph (4) of section 40(d) is amended to 

18 read as follows: 

19 ‘‘(4) VOLUME OF ALCOHOL.—For purposes of de20 termining under subsection (a) the number of gallons 

21 of alcohol with respect to which a credit is allowable 

22 under subsection (a), the volume of alcohol shall in23 clude the volume of any denaturant (including gaso24 line) which is added under any formulas approved by 

25 the Secretary to the extent that such denaturants do 
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1 not exceed 5 percent of the volume of such alcohol (in2 cluding denaturants).’’. 

3 (3) Section 40(e)(1) is amended— 

4 (A) by striking ‘‘2007’’ in subparagraph 

5 (A) and inserting ‘‘2010’’, and 

6 (B) by striking ‘‘2008’’ in subparagraph 

7 (B) and inserting ‘‘2011’’. 

8 (4) Section 40(h) is amended— 

9 (A) by striking ‘‘2007’’ in paragraph (1) 

10 and inserting ‘‘2010’’, and 

11 (B) by striking ‘‘, 2006, or 2007’’ in the 

12 table contained in paragraph (2) and inserting 

13 ‘‘through 2010’’. 

14 (5) Section 4041(b)(2)(B) is amended by striking 

15 ‘‘a substance other than petroleum or natural gas’’ 

16 and inserting ‘‘coal (including peat)’’. 

17 (6) Section 4041 is amended by striking sub18 section (k). 

19 (7) Section 4081 is amended by striking sub20 section (c). 

21 (8) Paragraph (2) of section 4083(a) is amended 

22 to read as follows: 

23 ‘‘(2) GASOLINE.—The term ‘gasoline’— 

24 ‘‘(A) includes any gasoline blend, other than 

25 qualified methanol or ethanol fuel (as defined in 
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1 section 4041(b)(2)(B)), partially exempt meth2 anol or ethanol fuel (as defined in section 

3 4041(m)(2)), or a denatured alcohol, and 

4 ‘‘(B) includes, to the extent prescribed in 

5 regulations— 

6 ‘‘(i) any gasoline blend stock, and 

7 ‘‘(ii) any product commonly used as 

8 an additive in gasoline (other than alcohol). 

9 For purposes of subparagraph (B)(i), the term ‘gaso10 line blend stock’ means any petroleum product compo11 nent of gasoline.’’. 

12 (9) Section 6427 is amended by inserting after 

13 subsection (d) the following new subsection: 

14 ‘‘(e) ALCOHOL OR BIODIESEL USED TO PRODUCE AL15 COHOL FUEL AND BIODIESEL MIXTURES OR USED AS

16 FUELS.—Except as provided in subsection (k)— 

17 ‘‘(1) USED TO PRODUCE A MIXTURE.—If any 

18 person produces a mixture described in section 6426 

19 in such person’s trade or business, the Secretary shall 

20 pay (without interest) to such person an amount 

21 equal to the alcohol fuel mixture credit or the biodiesel 

22 mixture credit with respect to such mixture. 

23 ‘‘(2) USED AS FUEL.—If alcohol (as defined in 

24 section 40(d)(1)) or biodiesel (as defined in section 

25 40A(d)(1)) or agri-biodiesel (as defined in section 
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1 40A(d)(2)) which is not in a mixture described in sec2 tion 6426— 

3 ‘‘(A) is used by any person as a fuel in a 

4 trade or business, or 

5 ‘‘(B) is sold by any person at retail to an6 other person and placed in the fuel tank of such 

7 person’s vehicle, 

8 the Secretary shall pay (without interest) to such per9 son an amount equal to the alcohol credit (as deter10 mined under section 40(b)(2)) or the biodiesel credit 

11 (as determined under section 40A(b)(2)) with respect 

12 to such fuel. 

13 ‘‘(3) COORDINATION WITH OTHER REPAYMENT

14 PROVISIONS.—No amount shall be payable under 

15 paragraph (1) with respect to any mixture with re16 spect to which an amount is allowed as a credit 

17 under section 6426. 

18 ‘‘(4) TERMINATION.—This subsection shall not 

19 apply with respect to— 

20 ‘‘(A) any alcohol fuel mixture (as defined in 

21 section 6426(b)(3)) or alcohol (as so defined) sold 

22 or used after December 31, 2010, and 

23 ‘‘(B) any biodiesel mixture (as defined in 

24 section 6426(c)(3)) or biodiesel (as so defined) or 
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1 agri-biodiesel (as so defined) sold or used after 

2 December 31, 2006.’’. 

3 (10) Section 6427(i)(3) is amended— 

4 (A) by striking ‘‘subsection (f)’’ both places 

5 it appears in subparagraph (A) and inserting 

6 ‘‘subsection (e)(1)’’, 

7 (B) by striking ‘‘gasoline, diesel fuel, or ker8 osene used to produce a qualified alcohol mixture 

9 (as defined in section 4081(c)(3))’’ in subpara10 graph (A) and inserting ‘‘a mixture described in 

11 section 6426’’, 

12 (C) by adding at the end of subparagraph 

13 (A) the following new flush sentence: 

14 ‘‘In the case of an electronic claim, this subpara15 graph shall be applied without regard to clause 

16 (i).’’, 

17 (D) by striking ‘‘subsection (f)(1)’’ in sub18 paragraph (B) and inserting ‘‘subsection (e)(1)’’, 

19 (E) by striking ‘‘20 days of the date of the 

20 filing of such claim’’ in subparagraph (B) and 

21 inserting ‘‘45 days of the date of the filing of 

22 such claim (20 days in the case of an electronic 

23 claim)’’, and 
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1 (F) by striking ‘‘ALCOHOL MIXTURE’’ in the 

2 heading and inserting ‘‘ALCOHOL FUEL AND BIO3 DIESEL MIXTURE’’. 

4 (11) Section 9503(b)(1) is amended by adding at 

5 the end the following new flush sentence: 

6 ‘‘For purposes of this paragraph, taxes received under 

7 sections 4041 and 4081 shall be determined without 

8 reduction for credits under section 6426.’’. 

9 (12) Section 9503(b)(4), as amended by section 

10 5101 of this Act, is amended— 

11 (A) by adding ‘‘or’’ at the end of subpara12 graph (C), 

13 (B) by striking the comma at the end of 

14 subparagraph (D)(iii) and inserting a period, 

15 and 

16 (C) by striking subparagraphs (E) and (F). 

17 (13) The table of sections for subchapter B of 

18 chapter 65 is amended by inserting after the item re19 lating to section 6425 the following new item: 

‘‘Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.’’. 

20 (14) TARIFF SCHEDULE.—Headings 9901.00.50 

21 and 9901.00.52 of the Harmonized Tariff Schedule of 

22 the United States (19 U.S.C. 3007) are each amended 

23 in the effective period column by striking ‘‘10/1/2007’’ 

24 each place it appears and inserting ‘‘1/1/2011’’. 

25 (d) EFFECTIVE DATES.— 
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1 (1) IN GENERAL.—Except as otherwise provided 

2 in this subsection, the amendments made by this sec3 tion shall apply to fuel sold or used after September 

4 30, 2004. 

5 (2) REGISTRATION REQUIREMENT.—The amend6 ment made by subsection (b) shall take effect on April 

7 1, 2005. 

8 (3) EXTENSION OF ALCOHOL FUELS CREDIT.— 

9 The amendments made by paragraphs (3), (4), and 

10 (14) of subsection (c) shall take effect on the date of 

11 the enactment of this Act. 

12 (4) REPEAL OF GENERAL FUND RETENTION OF

13 CERTAIN ALCOHOL FUELS TAXES.—The amendments 

14 made by subsection (c)(12) shall apply to fuel sold or 

15 used after September 30, 2003. 

16 (e) FORMAT FOR FILING.—The Secretary of the Treas17 ury shall describe the electronic format for filing claims de18 scribed in section 6427(i)(3)(B) of the Internal Revenue 

19 Code of 1986 (as amended by subsection (c)(10)(C)) not 

20 later than September 30, 2004. 

21 SEC. 5103. BIODIESEL INCOME TAX CREDIT. 

22 (a) IN GENERAL.—Subpart D of part IV of subchapter 

23 A of chapter 1 (relating to business related credits) is 

24 amended by inserting after section 40 the following new sec25 tion: 
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1 ‘‘SEC. 40A. BIODIESEL USED AS FUEL. 

2 ‘‘(a) GENERAL RULE.—For purposes of section 38, the 

3 biodiesel fuels credit determined under this section for the 

4 taxable year is an amount equal to the sum of— 

5 ‘‘(1) the biodiesel mixture credit, plus 

6 ‘‘(2) the biodiesel credit. 

7 ‘‘(b) DEFINITION OF BIODIESEL MIXTURE CREDIT

8 AND BIODIESEL CREDIT.—For purposes of this section— 

9 ‘‘(1) BIODIESEL MIXTURE CREDIT.— 

10 ‘‘(A) IN GENERAL.—The biodiesel mixture 

11 credit of any taxpayer for any taxable year is 50 

12 cents for each gallon of biodiesel used by the tax13 payer in the production of a qualified biodiesel 

14 mixture. 

15 ‘‘(B) QUALIFIED BIODIESEL MIXTURE.—The 

16 term ‘qualified biodiesel mixture’ means a mix17 ture of biodiesel and diesel fuel (as defined in 

18 section 4083(a)(3)), determined without regard 

19 to any use of kerosene, which— 

20 ‘‘(i) is sold by the taxpayer producing 

21 such mixture to any person for use as a 

22 fuel, or 

23 ‘‘(ii) is used as a fuel by the taxpayer 

24 producing such mixture. 

25 ‘‘(C) SALE OR USE MUST BE IN TRADE OR

26 BUSINESS, ETC.—Biodiesel used in the produc-
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1 tion of a qualified biodiesel mixture shall be 

2 taken into account— 

3 ‘‘(i) only if the sale or use described in 

4 subparagraph (B) is in a trade or business 

5 of the taxpayer, and 

6 ‘‘(ii) for the taxable year in which such 

7 sale or use occurs. 

8 ‘‘(D) CASUAL OFF-FARM PRODUCTION NOT

9 ELIGIBLE.—No credit shall be allowed under this 

10 section with respect to any casual off-farm pro11 duction of a qualified biodiesel mixture. 

12 ‘‘(2) BIODIESEL CREDIT.— 

13 ‘‘(A) IN GENERAL.—The biodiesel credit of 

14 any taxpayer for any taxable year is 50 cents for 

15 each gallon of biodiesel which is not in a mixture 

16 with diesel fuel and which during the taxable 

17 year— 

18 ‘‘(i) is used by the taxpayer as a fuel 

19 in a trade or business, or 

20 ‘‘(ii) is sold by the taxpayer at retail 

21 to a person and placed in the fuel tank of 

22 such person’s vehicle. 

23 ‘‘(B) USER CREDIT NOT TO APPLY TO BIO24 DIESEL SOLD AT RETAIL.—No credit shall be al25 lowed under subparagraph (A)(i) with respect to 
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1 any biodiesel which was sold in a retail sale de2 scribed in subparagraph (A)(ii). 

3 ‘‘(3) CREDIT FOR AGRI-BIODIESEL.—In the case 

4 of any biodiesel which is agri-biodiesel, paragraphs 

5 (1)(A) and (2)(A) shall be applied by substituting 

6 ‘$1.00’ for ‘50 cents’. 

7 ‘‘(4) CERTIFICATION FOR BIODIESEL.—No credit 

8 shall be allowed under this section unless the taxpayer 

9 obtains a certification (in such form and manner as 

10 prescribed by the Secretary) from the producer or im11 porter of the biodiesel which identifies the product 

12 produced and the percentage of biodiesel and agri-bio13 diesel in the product. 

14 ‘‘(c) COORDINATION WITH CREDIT AGAINST EXCISE

15 TAX.—The amount of the credit determined under this sec16 tion with respect to any biodiesel shall be properly reduced 

17 to take into account any benefit provided with respect to 

18 such biodiesel solely by reason of the application of section 

19 6426 or 6427(e). 

20 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur21 poses of this section— 

22 ‘‘(1) BIODIESEL.—The term ‘biodiesel’ means the 

23 monoalkyl esters of long chain fatty acids derived 

24 from plant or animal matter which meet— 
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1 ‘‘(A) the registration requirements for fuels 

2 and fuel additives established by the Environ3 mental Protection Agency under section 211 of 

4 the Clean Air Act (42 U.S.C. 7545), and 

5 ‘‘(B) the requirements of the American Soci6 ety of Testing and Materials D6751. 

7 ‘‘(2) AGRI-BIODIESEL.—The term ‘agri-biodiesel’ 

8 means biodiesel derived solely from virgin oils, in9 cluding esters derived from virgin vegetable oils from 

10 corn, soybeans, sunflower seeds, cottonseeds, canola, 

11 crambe, rapeseeds, safflowers, flaxseeds, rice bran, and 

12 mustard seeds, and from animal fats. 

13 ‘‘(3) MIXTURE OR BIODIESEL NOT USED AS A

14 FUEL, ETC.— 

15 ‘‘(A) MIXTURES.—If— 

16 ‘‘(i) any credit was determined under 

17 this section with respect to biodiesel used in 

18 the production of any qualified biodiesel 

19 mixture, and 

20 ‘‘(ii) any person— 

21 ‘‘(I) separates the biodiesel from 

22 the mixture, or 

23 ‘‘(II) without separation, uses the 

24 mixture other than as a fuel, 
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1 then there is hereby imposed on such person a 

2 tax equal to the product of the rate applicable 

3 under subsection (b)(1)(A) and the number of 

4 gallons of such biodiesel in such mixture. 

5 ‘‘(B) BIODIESEL.—If— 

6 ‘‘(i) any credit was determined under 

7 this section with respect to the retail sale of 

8 any biodiesel, and 

9 ‘‘(ii) any person mixes such biodiesel 

10 or uses such biodiesel other than as a fuel, 

11 then there is hereby imposed on such person a 

12 tax equal to the product of the rate applicable 

13 under subsection (b)(2)(A) and the number of 

14 gallons of such biodiesel. 

15 ‘‘(C) APPLICABLE LAWS.—All provisions of 

16 law, including penalties, shall, insofar as appli17 cable and not inconsistent with this section, 

18 apply in respect of any tax imposed under sub19 paragraph (A) or (B) as if such tax were im20 posed by section 4081 and not by this chapter. 

21 ‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND

22 TRUSTS.—Under regulations prescribed by the Sec23 retary, rules similar to the rules of subsection (d) of 

24 section 52 shall apply. 
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1 ‘‘(e) TERMINATION.—This section shall not apply to 

2 any sale or use after December 31, 2006.’’. 

3 (b) CREDIT TREATED AS PART OF GENERAL BUSI4 NESS CREDIT.—Section 38(b) (relating to current year 

5 business credit) is amended by striking ‘‘plus’’ at the end 

6 of paragraph (14), by striking the period at the end of para7 graph (15) and inserting ‘‘, plus’’, and by adding at the 

8 end the following new paragraph: 

9 ‘‘(16) the biodiesel fuels credit determined under 

10 section 40A(a).’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) Section 39(d) is amended by adding at the 

13 end the following new paragraph: 

14 ‘‘(11) NO CARRYBACK OF BIODIESEL FUELS

15 CREDIT BEFORE EFFECTIVE DATE.—No portion of the 

16 unused business credit for any taxable year which is 

17 attributable to the biodiesel fuels credit determined 

18 under section 40A may be carried back to a taxable 

19 year ending on or before September 30, 2004.’’. 

20 (2)(A) Section 87 is amended to read as follows: 

21 ‘‘SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS. 

22 ‘‘Gross income includes— 

23 ‘‘(1) the amount of the alcohol fuels credit deter24 mined with respect to the taxpayer for the taxable 

25 year under section 40(a), and 
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1 ‘‘(2) the biodiesel fuels credit determined with re2 spect to the taxpayer for the taxable year under sec3 tion 40A(a).’’. 

4 (B) The item relating to section 87 in the table 

5 of sections for part II of subchapter B of chapter 1 

6 is amended by striking ‘‘fuel credit’’ and inserting 

7 ‘‘and biodiesel fuels credits’’. 

8 (3) Section 196(c) is amended by striking ‘‘and’’ 

9 at the end of paragraph (9), by striking the period at 

10 the end of paragraph (10) and inserting ‘‘, and’’, and 

11 by adding at the end the following new paragraph: 

12 ‘‘(11) the biodiesel fuels credit determined under 

13 section 40A(a).’’. 

14 (4) The table of sections for subpart D of part 

15 IV of subchapter A of chapter 1 is amended by adding 

16 after the item relating to section 40 the following new 

17 item: 

‘‘Sec. 40A. Biodiesel used as fuel.’’. 

18 (d) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to fuel produced, and sold or used, after 

20 September 30, 2004, in taxable years ending after such date. 

21 Subtitle C—Fuel Fraud Prevention 

22 SEC. 5200. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Fuel Fraud Preven24 tion Act of 2004’’. 
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1 PART I—AVIATION JET FUEL 

2 SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE. 

3 (a) RATE OF TAX.— 

4 (1) IN GENERAL.—Subparagraph (A) of section 

5 4081(a)(2) is amended by striking ‘‘and’’ at the end 

6 of clause (ii), by striking the period at the end of 

7 clause (iii) and inserting ‘‘, and’’, and by adding at 

8 the end the following new clause: 

9 ‘‘(iv) in the case of aviation-grade ker10 osene, 21.8 cents per gallon.’’. 

11 (2) COMMERCIAL AVIATION.—Paragraph (2) of 

12 section 4081(a) is amended by adding at the end the 

13 following new subparagraph: 

14 ‘‘(C) TAXES IMPOSED ON FUEL USED IN

15 COMMERCIAL AVIATION.—In the case of aviation16 grade kerosene which is removed from any refin17 ery or terminal directly into the fuel tank of an 

18 aircraft for use in commercial aviation, the rate 

19 of tax under subparagraph (A)(iv) shall be 4.3 

20 cents per gallon.’’. 

21 (3) NONTAXABLE USES.— 

22 (A) IN GENERAL.—Section 4082 is amended 

23 by redesignating subsections (e) and (f) as sub24 sections (f) and (g), respectively, and by insert25 ing after subsection (d) the following new sub26 section: 
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1 ‘‘(e) AVIATION-GRADE KEROSENE.—In the case of 

2 aviation-grade kerosene which is exempt from the tax im3 posed by section 4041(c) (other than by reason of a prior 

4 imposition of tax) and which is removed from any refinery 

5 or terminal directly into the fuel tank of an aircraft, the 

6 rate of tax under section 4081(a)(2)(A)(iv) shall be zero.’’. 

7 (B) CONFORMING AMENDMENTS.— 

8 (i) Subsection (b) of section 4082 is 

9 amended by adding at the end the following 

10 new flush sentence: ‘‘The term ‘nontaxable 

11 use’ does not include the use of aviation12 grade kerosene in an aircraft.’’. 

13 (ii) Section 4082(d) is amended by 

14 striking paragraph (1) and by redesig15 nating paragraphs (2) and (3) as para16 graphs (1) and (2), respectively. 

17 (4) NONAIRCRAFT USE OF AVIATION-GRADE KER18 OSENE.— 

19 (A) IN GENERAL.—Subparagraph (B) of 

20 section 4041(a)(1) is amended by adding at the 

21 end the following new sentence: ‘‘This subpara22 graph shall not apply to aviation-grade ker23 osene.’’. 

24 (B) CONFORMING AMENDMENT.—The head25 ing for paragraph (1) of section 4041(a) is 
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HR 3550 EAS 

1 amended by inserting ‘‘AND KEROSENE’’ after 

2 ‘‘DIESEL FUEL’’. 

3 (b) COMMERCIAL AVIATION.—Section 4083 is amended 

4 redesignating subsections (b) and (c) as subsections (c) and 

5 (d), respectively, and by inserting after subsection (a) the 

6 following new subsection: 

7 ‘‘(b) COMMERCIAL AVIATION.—For purposes of this 

8 subpart, the term ‘commercial aviation’ means any use of 

9 an aircraft in a business of transporting persons or prop10 erty for compensation or hire by air, unless properly allo11 cable to any transportation exempt from the taxes imposed 

12 by section 4261 and 4271 by reason of section 4281 or 4282 

13 or by reason of section 4261(h).’’. 

14 (c) REFUNDS.— 

15 (1) IN GENERAL.—Paragraph (4) of section 

16 6427(l) is amended to read as follows: 

17 ‘‘(4) REFUNDS FOR AVIATION-GRADE KER18 OSENE.— 

19 ‘‘(A) NO REFUND OF CERTAIN TAXES ON

20 FUEL USED IN COMMERCIAL AVIATION.—In the 

21 case of aviation-grade kerosene used in commer22 cial aviation (as defined in section 4083(b)) 

23 (other than supplies for vessels or aircraft within 

24 the meaning of section 4221(d)(3)), paragraph 
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1 (1) shall not apply to so much of the tax imposed 

2 by section 4081 as is attributable to— 

3 ‘‘(i) the Leaking Underground Storage 

4 Tank Trust Fund financing rate imposed 

5 by such section, and 

6 ‘‘(ii) so much of the rate of tax speci7 fied in section 4081(a)(2)(A)(iv) as does not 

8 exceed 4.3 cents per gallon. 

9 ‘‘(B) PAYMENT TO ULTIMATE, REGISTERED

10 VENDOR.—With respect to aviation-grade ker11 osene, if the ultimate purchaser of such kerosene 

12 waives (at such time and in such form and man13 ner as the Secretary shall prescribe) the right to 

14 payment under paragraph (1) and assigns such 

15 right to the ultimate vendor, then the Secretary 

16 shall pay the amount which would be paid under 

17 paragraph (1) to such ultimate vendor, but only 

18 if such ultimate vendor— 

19 ‘‘(i) is registered under section 4101, 

20 and 

21 ‘‘(ii) meets the requirements of sub22 paragraph (A), (B), or (D) of section 

23 6416(a)(1).’’. 

24 (2) TIME FOR FILING CLAIMS.—Paragraph (4) of 

25 section 6427(i) is amended by striking ‘‘subsection 
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1 (l)(5)’’ and inserting ‘‘paragraph (4)(B) or (5) of sub2 section (l)’’. 

3 (3) CONFORMING AMENDMENT.—Subparagraph 

4 (B) of section 6427(l)(2) is amended to read as fol5 lows: 

6 ‘‘(B) in the case of aviation-grade ker7 osene— 

8 ‘‘(i) any use which is exempt from the 

9 tax imposed by section 4041(c) other than 

10 by reason of a prior imposition of tax, or 

11 ‘‘(ii) any use in commercial aviation 

12 (within the meaning of section 4083(b)).’’. 

13 (d) REPEAL OF PRIOR TAXATION OF AVIATION

14 FUEL.— 

15 (1) IN GENERAL.—Part III of subchapter A of 

16 chapter 32 is amended by striking subpart B and by 

17 redesignating subpart C as subpart B. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Section 4041(c) is amended to read as 

20 follows: 

21 ‘‘(c) AVIATION-GRADE KEROSENE.— 

22 ‘‘(1) IN GENERAL.—There is hereby imposed a 

23 tax upon aviation-grade kerosene— 
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1 ‘‘(A) sold by any person to an owner, lessee, 

2 or other operator of an aircraft for use in such 

3 aircraft, or 

4 ‘‘(B) used by any person in an aircraft un5 less there was a taxable sale of such fuel under 

6 subparagraph (A). 

7 ‘‘(2) EXEMPTION FOR PREVIOUSLY TAXED

8 FUEL.—No tax shall be imposed by this subsection on 

9 the sale or use of any aviation-grade kerosene if tax 

10 was imposed on such liquid under section 4081 and 

11 the tax thereon was not credited or refunded. 

12 ‘‘(3) RATE OF TAX.—The rate of tax imposed by 

13 this subsection shall be the rate of tax specified in sec14 tion 4081(a)(2)(A)(iv) which is in effect at the time 

15 of such sale or use.’’. 

16 (B) Section 4041(d)(2) is amended by strik17 ing ‘‘section 4091’’ and inserting ‘‘section 4081’’. 

18 (C) Section 4041 is amended by striking 

19 subsection (e). 

20 (D) Section 4041 is amended by striking 

21 subsection (i). 

22 (E) Section 4041(m)(1) is amended to read 

23 as follows: 
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1 ‘‘(1) IN GENERAL.—In the case of the sale or use 

2 of any partially exempt methanol or ethanol fuel, the 

3 rate of the tax imposed by subsection (a)(2) shall be— 

4 ‘‘(A) after September 30, 1997, and before 

5 September 30, 2009— 

6 ‘‘(i) in the case of fuel none of the alco7 hol in which consists of ethanol, 9.15 cents 

8 per gallon, and 

9 ‘‘(ii) in any other case, 11.3 cents per 

10 gallon, and 

11 ‘‘(B) after September 30, 2009— 

12 ‘‘(i) in the case of fuel none of the alco13 hol in which consists of ethanol, 2.15 cents 

14 per gallon, and 

15 ‘‘(ii) in any other case, 4.3 cents per 

16 gallon.’’. 

17 (F) Sections 4101(a), 4103, 4221(a), and 

18 6206 are each amended by striking ‘‘, 4081, or 

19 4091’’ and inserting ‘‘or 4081’’. 

20 (G) Section 6416(b)(2) is amended by strik21 ing ‘‘4091 or’’. 

22 (H) Section 6416(b)(3) is amended by strik23 ing ‘‘or 4091’’ each place it appears. 
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1 (I) Section 6416(d) is amended by striking 

2 ‘‘or to the tax imposed by section 4091 in the 

3 case of refunds described in section 4091(d)’’. 

4 (J) Section 6427 is amended by striking 

5 subsection (f). 

6 (K) Section 6427(j)(1) is amended by strik7 ing ‘‘, 4081, and 4091’’ and inserting ‘‘and 

8 4081’’. 

9 (L)(i) Section 6427(l)(1) is amended to 

10 read as follows: 

11 ‘‘(1) IN GENERAL.—Except as otherwise provided 

12 in this subsection and in subsection (k), if any diesel 

13 fuel or kerosene on which tax has been imposed by 

14 section 4041 or 4081 is used by any person in a non15 taxable use, the Secretary shall pay (without interest) 

16 to the ultimate purchaser of such fuel an amount 

17 equal to the aggregate amount of tax imposed on such 

18 fuel under section 4041 or 4081, as the case may be, 

19 reduced by any refund paid to the ultimate vendor 

20 under paragraph (4)(B).’’. 

21 (ii) Paragraph (5)(B) of section 6427(l) is 

22 amended by striking ‘‘Paragraph (1)(A) shall 

23 not apply to kerosene’’ and inserting ‘‘Para24 graph (1) shall not apply to kerosene (other than 

25 aviation-grade kerosene)’’. 
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1 (M) Subparagraph (B) of section 6724(d)(1) 

2 is amended by striking clause (xv) and by redes3 ignating the succeeding clauses accordingly. 

4 (N) Paragraph (2) of section 6724(d) is 

5 amended by striking subparagraph (W) and by 

6 redesignating the succeeding subparagraphs ac7 cordingly. 

8 (O) Paragraph (1) of section 9502(b) is 

9 amended by adding ‘‘and’’ at the end of subpara10 graph (B) and by striking subparagraphs (C) 

11 and (D) and inserting the following new sub12 paragraph: 

13 ‘‘(C) section 4081 with respect to aviation 

14 gasoline and aviation-grade kerosene, and’’. 

15 (P) The last sentence of section 9502(b) is 

16 amended to read as follows: 

17 ‘‘There shall not be taken into account under paragraph 

18 (1) so much of the taxes imposed by section 4081 as are 

19 determined at the rate specified in section 4081(a)(2)(B).’’. 

20 (Q) Subsection (b) of section 9508 is 

21 amended by striking paragraph (3) and by re22 designating paragraphs (4) and (5) as para23 graphs (3) and (4), respectively. 
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1 (R) Section 9508(c)(2)(A) is amended by 

2 striking ‘‘sections 4081 and 4091’’ and inserting 

3 ‘‘section 4081’’. 

4 (S) The table of subparts for part III of 

5 subchapter A of chapter 32 is amended to read 

6 as follows: 

‘‘Subpart A. Motor and aviation fuels. 

‘‘Subpart B. Special provisions applicable to fuels tax.’’. 

7 (T) The heading for subpart A of part III 

8 of subchapter A of chapter 32 is amended to read 

9 as follows: 

10 ‘‘Subpart A—Motor and Aviation Fuels’’. 

11 (U) The heading for subpart B of part III 

12 of subchapter A of chapter 32 is amended to read 

13 as follows: 

14 ‘‘Subpart B—Special Provisions Applicable to Fuels 

15 Tax’’. 

16 (e) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to aviation-grade kerosene removed, en18 tered, or sold after September 30, 2004. 

19 (f) FLOOR STOCKS TAX.— 

20 (1) IN GENERAL.—There is hereby imposed on 

21 aviation-grade kerosene held on October 1, 2004, by 

22 any person a tax equal to— 

23 (A) the tax which would have been imposed 

24 before such date on such kerosene had the amend-
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1 ments made by this section been in effect at all 

2 times before such date, reduced by 

3 (B) the tax imposed before such date under 

4 section 4091 of the Internal Revenue Code of 

5 1986, as in effect on the day before the date of 

6 the enactment of this Act. 

7 (2) LIABILITY FOR TAX AND METHOD OF PAY8 MENT.— 

9 (A) LIABILITY FOR TAX.—The person hold10 ing the kerosene on October 1, 2004, to which the 

11 tax imposed by paragraph (1) applies shall be 

12 liable for such tax. 

13 (B) METHOD AND TIME FOR PAYMENT.— 

14 The tax imposed by paragraph (1) shall be paid 

15 at such time and in such manner as the Sec16 retary of the Treasury shall prescribe, including 

17 the nonapplication of such tax on de minimis 

18 amounts of kerosene. 

19 (3) TRANSFER OF FLOOR STOCK TAX REVENUES

20 TO TRUST FUNDS.—For purposes of determining the 

21 amount transferred to any trust fund, the tax im22 posed by this subsection shall be treated as imposed 

23 by section 4081 of the Internal Revenue Code of 

24 1986— 
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1 (A) at the Leaking Underground Storage 

2 Tank Trust Fund financing rate under such sec3 tion to the extent of 0.1 cents per gallon, and 

4 (B) at the rate under section 

5 4081(a)(2)(A)(iv) to the extent of the remainder. 

6 (4) HELD BY A PERSON.—For purposes of this 

7 section, kerosene shall be considered as held by a per8 son if title thereto has passed to such person (whether 

9 or not delivery to the person has been made). 

10 (5) OTHER LAWS APPLICABLE.—All provisions of 

11 law, including penalties, applicable with respect to 

12 the tax imposed by section 4081 of such Code shall, 

13 insofar as applicable and not inconsistent with the 

14 provisions of this subsection, apply with respect to the 

15 floor stock tax imposed by paragraph (1) to the same 

16 extent as if such tax were imposed by such section. 

17 SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE 

18 AIRPORT AND AIRWAY TRUST FUND TO THE 

19 HIGHWAY TRUST FUND TO REFLECT HIGH20 WAY USE OF JET FUEL. 

21 (a) IN GENERAL.—Section 9502(d) is amended by 

22 adding at the end the following new paragraph: 

23 ‘‘(7) TRANSFERS FROM THE TRUST FUND TO

24 THE HIGHWAY TRUST FUND.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall pay 

2 annually from the Airport and Airway Trust 

3 Fund into the Highway Trust Fund an amount 

4 (as determined by him) equivalent to amounts 

5 received in the Airport and Airway Trust Fund 

6 which are attributable to fuel that is used pri7 marily for highway transportation purposes. 

8 ‘‘(B) AMOUNTS TRANSFERRED TO MASS

9 TRANSIT ACCOUNT.—The Secretary shall transfer 

10 11 percent of the amounts paid into the High11 way Trust Fund under subparagraph (A) to the 

12 Mass Transit Account established under section 

13 9503(e).’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Subsection (a) of section 9503 is amended— 

16 (A) by striking ‘‘appropriated or credited’’ 

17 and inserting ‘‘paid, appropriated, or credited’’, 

18 and 

19 (B) by striking ‘‘or section 9602(b)’’ and in20 serting ‘‘, section 9502(d)(7), or section 9602(b)’’. 

21 (2) Subsection (e)(1) of section 9503 is amended 

22 by striking ‘‘or section 9602(b)’’ and inserting ‘‘, sec23 tion 9502(d)(7), or section 9602(b)’’. 

24 (c) EFFECTIVE DATE.—The amendments made by this 

25 section shall take effect on October 1, 2004. 
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1 PART II—DYED FUEL 

2 SEC. 5221. DYE INJECTION EQUIPMENT. 

3 (a) IN GENERAL.—Section 4082(a)(2) (relating to ex4 emptions for diesel fuel and kerosene) is amended by insert5 ing ‘‘by mechanical injection’’ after ‘‘indelibly dyed’’. 

6 (b) DYE INJECTOR SECURITY.—Not later than June 

7 30, 2004, the Secretary of the Treasury shall issue regula8 tions regarding mechanical dye injection systems described 

9 in the amendment made by subsection (a), and such regula10 tions shall include standards for making such systems tam11 per resistant. 

12 (c) PENALTY FOR TAMPERING WITH OR FAILING TO

13 MAINTAIN SECURITY REQUIREMENTS FOR MECHANICAL

14 DYE INJECTION SYSTEMS.— 

15 (1) IN GENERAL.—Part I of subchapter B of 

16 chapter 68 (relating to assessable penalties) is amend17 ed by adding after section 6715 the following new sec18 tion: 

19 ‘‘SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN 

20 SECURITY REQUIREMENTS FOR MECHANICAL 

21 DYE INJECTION SYSTEMS. 

22 ‘‘(a) IMPOSITION OF PENALTY— 

23 ‘‘(1) TAMPERING.—If any person tampers with a 

24 mechanical dye injection system used to indelibly dye 

25 fuel for purposes of section 4082, then such person 

26 shall pay a penalty in addition to the tax (if any). 
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1 ‘‘(2) FAILURE TO MAINTAIN SECURITY REQUIRE2 MENTS.—If any operator of a mechanical dye injec3 tion system used to indelibly dye fuel for purposes of 

4 section 4082 fails to maintain the security standards 

5 for such system as established by the Secretary, then 

6 such operator shall pay a penalty. 

7 ‘‘(b) AMOUNT OF PENALTY.—The amount of the pen8 alty under subsection (a) shall be— 

9 ‘‘(1) for each violation described in paragraph 

10 (1), the greater of— 

11 ‘‘(A) $25,000, or 

12 ‘‘(B) $10 for each gallon of fuel involved, 

13 and 

14 ‘‘(2) for each— 

15 ‘‘(A) failure to maintain security standards 

16 described in paragraph (2), $1,000, and 

17 ‘‘(B) failure to correct a violation described 

18 in paragraph (2), $1,000 per day for each day 

19 after which such violation was discovered or such 

20 person should have reasonably known of such 

21 violation. 

22 ‘‘(c) JOINT AND SEVERAL LIABILITY.— 

23 ‘‘(1) IN GENERAL.—If a penalty is imposed 

24 under this section on any business entity, each officer, 

25 employee, or agent of such entity or other contracting 
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1 party who willfully participated in any act giving 

2 rise to such penalty shall be jointly and severally lia3 ble with such entity for such penalty. 

4 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

5 described in paragraph (1) is part of an affiliated 

6 group (as defined in section 1504(a)), the parent cor7 poration of such entity shall be jointly and severally 

8 liable with such entity for the penalty imposed under 

9 this section.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions for part I of subchapter B of chapter 68 is 

12 amended by adding after the item related to section 

13 6715 the following new item: 

‘‘Sec. 6715A. Tampering with or failing to maintain security requirements for 

mechanical dye injection systems.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 subsections (a) and (c) shall take effect 180 days after the 

16 date on which the Secretary issues the regulations described 

17 in subsection (b). 

18 SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR 

19 TAXABLE USE OF DYED FUEL. 

20 (a) IN GENERAL.—Section 6715 is amended by insert21 ing at the end the following new subsection: 

22 ‘‘(e) NO ADMINISTRATIVE APPEAL FOR THIRD AND

23 SUBSEQUENT VIOLATIONS.—In the case of any person who 

24 is found to be subject to the penalty under this section after 
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1 a chemical analysis of such fuel and who has been penalized 

2 under this section at least twice after the date of the enact3 ment of this subsection, no administrative appeal or review 

4 shall be allowed with respect to such finding except in the 

5 case of a claim regarding— 

6 ‘‘(1) fraud or mistake in the chemical analysis, 

7 or 

8 ‘‘(2) mathematical calculation of the amount of 

9 the penalty.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by this 

11 section shall apply to penalties assessed after the date of 

12 the enactment of this Act. 

13 SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED 

14 DYED FUEL MIXTURES. 

15 (a) IN GENERAL.—Section 6715(a) (relating to dyed 

16 fuel sold for use or used in taxable use, etc.) is amended 

17 by striking ‘‘or’’ in paragraph (2), by inserting ‘‘or’’ at the 

18 end of paragraph (3), and by inserting after paragraph (3) 

19 the following new paragraph: 

20 ‘‘(4) any person who has knowledge that a dyed 

21 fuel which has been altered as described in paragraph 

22 (3) sells or holds for sale such fuel for any use which 

23 the person knows or has reason to know is not a non24 taxable use of such fuel,’’. 
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1 (b) CONFORMING AMENDMENT.—Section 6715(a)(3) is 

2 amended by striking ‘‘alters, or attempts to alter,’’ and in3 serting ‘‘alters, chemically or otherwise, or attempts to so 

4 alter,’’. 

5 (c) EFFECTIVE DATE.—The amendments made by this 

6 section shall take effect on the date of the enactment of this 

7 Act. 

8 SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTER9 CITY BUSES. 

10 (a) IN GENERAL.—Paragraph (3) of section 4082(b) 

11 (relating to nontaxable use) is amended to read as follows: 

12 ‘‘(3) any use described in section 

13 4041(a)(1)(C)(iii)(II).’’. 

14 (b) ULTIMATE VENDOR REFUND.—Subsection (b) of 

15 section 6427 is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘(4) REFUNDS FOR USE OF DIESEL FUEL IN

18 CERTAIN INTERCITY BUSES.— 

19 ‘‘(A) IN GENERAL.—With respect to any 

20 fuel to which paragraph (2)(A) applies, if the ul21 timate purchaser of such fuel waives (at such 

22 time and in such form and manner as the Sec23 retary shall prescribe) the right to payment 

24 under paragraph (1) and assigns such right to 

25 the ultimate vendor, then the Secretary shall pay 
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1 the amount which would be paid under para2 graph (1) to such ultimate vendor, but only if 

3 such ultimate vendor— 

4 ‘‘(i) is registered under section 4101, 

5 and 

6 ‘‘(ii) meets the requirements of sub7 paragraph (A), (B), or (D) of section 

8 6416(a)(1). 

9 ‘‘(B) CREDIT CARDS.—For purposes of this 

10 paragraph, if the sale of such fuel is made by 

11 means of a credit card, the person extending 

12 credit to the ultimate purchaser shall be deemed 

13 to be the ultimate vendor.’’. 

14 (c) PAYMENT OF REFUNDS.—Subparagraph (A) of sec15 tion 6427(i)(4), as amended by section 5211 of this Act, 

16 is amended by inserting ‘‘subsections (b)(4) and’’ after 

17 ‘‘filed under’’. 

18 (b) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to fuel sold after September 30, 2004. 

20 PART III—MODIFICATION OF INSPECTION OF 

21 RECORDS PROVISIONS 

22 SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS. 

23 (a) IN GENERAL.—Section 4083(d)(1)(A) (relating to 

24 administrative authority), as amended by section 5211 of 

25 this Act, is amended by striking ‘‘and’’ at the end of clause 
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1 (i) and by inserting after clause (ii) the following new 

2 clause: 

3 ‘‘(iii) inspecting any books and records 

4 and any shipping papers pertaining to such 

5 fuel, and’’. 

6 (b) EFFECTIVE DATE.—The amendments made by this 

7 section shall take effect on the date of the enactment of this 

8 Act. 

9 SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY. 

10 (a) IN GENERAL.—Part I of subchapter B of chapter 

11 68 (relating to assessable penalties), as amended by section 

12 5221 of this Act, is amended by adding at the end the fol13 lowing new section: 

14 ‘‘SEC. 6717. REFUSAL OF ENTRY. 

15 ‘‘(a) IN GENERAL.—In addition to any other penalty 

16 provided by law, any person who refuses to admit entry 

17 or refuses to permit any other action by the Secretary au18 thorized by section 4083(d)(1) shall pay a penalty of $1,000 

19 for such refusal. 

20 ‘‘(b) JOINT AND SEVERAL LIABILITY.— 

21 ‘‘(1) IN GENERAL.—If a penalty is imposed 

22 under this section on any business entity, each officer, 

23 employee, or agent of such entity or other contracting 

24 party who willfully participated in any act giving 
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1 rise to such penalty shall be jointly and severally lia2 ble with such entity for such penalty. 

3 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

4 described in paragraph (1) is part of an affiliated 

5 group (as defined in section 1504(a)), the parent cor6 poration of such entity shall be jointly and severally 

7 liable with such entity for the penalty imposed under 

8 this section. 

9 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

10 shall be imposed under this section with respect to any fail11 ure if it is shown that such failure is due to reasonable 

12 cause.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 4083(d)(3), as amended by section 

15 5211 of this Act, is amended— 

16 (A) by striking ‘‘ENTRY.—The penalty’’ and 

17 inserting: ‘‘ENTRY.— 

18 ‘‘(A) FORFEITURE.—The penalty’’, and 

19 (B) by adding at the end the following new 

20 subparagraph: 

21 ‘‘(B) ASSESSABLE PENALTY.—For addi22 tional assessable penalty for the refusal to admit 

23 entry or other refusal to permit an action by the 

24 Secretary authorized by paragraph (1), see sec25 tion 6717.’’. 
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1 (2) The table of sections for part I of subchapter 

2 B of chapter 68, as amended by section 5221 of this 

3 Act, is amended by adding at the end the following 

4 new item: 

‘‘Sec. 6717. Refusal of entry.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by this 

6 section shall take effect on October 1, 2004. 

7 PART IV—REGISTRATION AND REPORTING 

8 REQUIREMENTS 

9 SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERA10 TORS REQUIRED FOR EXEMPTION OF BULK 

11 TRANSFERS TO REGISTERED TERMINALS OR 

12 REFINERIES. 

13 (a) IN GENERAL.—Section 4081(a)(1)(B) (relating to 

14 exemption for bulk transfers to registered terminals or refin15 eries) is amended— 

16 (1) by inserting ‘‘by pipeline or vessel’’ after 

17 ‘‘transferred in bulk’’, and 

18 (2) by inserting ‘‘, the operator of such pipeline 

19 or vessel,’’ after ‘‘the taxable fuel’’. 

20 (b) CIVIL PENALTY FOR CARRYING TAXABLE FUELS

21 BY NONREGISTERED PIPELINES OR VESSELS.— 

22 (1) IN GENERAL.—Part I of subchapter B of 

23 chapter 68 (relating to assessable penalties), as 

24 amended by section 5232 of this Act, is amended by 

25 adding at the end the following new section: 
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1 ‘‘SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED 

2 PIPELINES OR VESSELS. 

3 ‘‘(a) IMPOSITION OF PENALTY.—If any person know4 ingly transfers any taxable fuel (as defined in section 

5 4083(a)(1)) in bulk pursuant to section 4081(a)(1)(B) to 

6 an unregistered, such person shall pay a penalty in addi7 tion to the tax (if any). 

8 ‘‘(b) AMOUNT OF PENALTY.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), the amount of the penalty under subsection 

11 (a) on each act shall be an amount equal to the great12 er of— 

13 ‘‘(A) $10,000, or 

14 ‘‘(B) $1 per gallon. 

15 ‘‘(2) MULTIPLE VIOLATIONS.—In determining 

16 the penalty under subsection (a) on any person, para17 graph (1) shall be applied by increasing the amount 

18 in paragraph (1) by the product of such amount and 

19 the number of prior penalties (if any) imposed by this 

20 section on such person (or a related person or any 

21 predecessor of such person or related person). 

22 ‘‘(c) JOINT AND SEVERAL LIABILITY.— 

23 ‘‘(1) IN GENERAL.—If a penalty is imposed 

24 under this section on any business entity, each officer, 

25 employee, or agent of such entity or other contracting 

26 party who willfully participated in any act giving 
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1 rise to such penalty shall be jointly and severally lia2 ble with such entity for such penalty. 

3 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

4 described in paragraph (1) is part of an affiliated 

5 group (as defined in section 1504(a)), the parent cor6 poration of such entity shall be jointly and severally 

7 liable with such entity for the penalty imposed under 

8 this section. 

9 ‘‘(d) REASONABLE CAUSE EXCEPTION.—No penalty 

10 shall be imposed under this section with respect to any fail11 ure if it is shown that such failure is due to reasonable 

12 cause.’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions for part I of subchapter B of chapter 68, as 

15 amended by section 5232 of this Act, is amended by 

16 adding at the end the following new item: 

‘‘Sec. 6718. Carrying taxable fuels by nonregistered pipelines or vessels.’’. 

17 (c) PUBLICATION OF REGISTERED PERSONS.—Not 

18 later than June 30, 2004, the Secretary of the Treasury 

19 shall publish a list of persons required to be registered under 

20 section 4101 of the Internal Revenue Code of 1986. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 subsections (a) and (b) shall take effect on October 1, 2004. 

23 SEC. 5242. DISPLAY OF REGISTRATION. 

24 (a) IN GENERAL.—Subsection (a) of section 4101 (re25 lating to registration) is amended— 
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1 (1) by striking ‘‘Every’’ and inserting the fol2 lowing: 

3 ‘‘(1) IN GENERAL.—Every’’, and 

4 (2) by adding at the end the following new para5 graph: 

6 ‘‘(2) DISPLAY OF REGISTRATION.—Every oper7 ator of a vessel required by the Secretary to register 

8 under this section shall display proof of registration 

9 through an electronic identification device prescribed 

10 by the Secretary on each vessel used by such operator 

11 to transport any taxable fuel.’’. 

12 (b) CIVIL PENALTY FOR FAILURE TO DISPLAY REG13 ISTRATION.— 

14 (1) IN GENERAL.—Part I of subchapter B of 

15 chapter 68 (relating to assessable penalties), as 

16 amended by section 5241 of this Act, is amended by 

17 adding at the end the following new section: 

18 ‘‘SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VES19 SEL. 

20 ‘‘(a) FAILURE TO DISPLAY REGISTRATION.—Every 

21 operator of a vessel who fails to display proof of registration 

22 pursuant to section 4101(a)(2) shall pay a penalty of $500 

23 for each such failure. With respect to any vessel, only one 

24 penalty shall be imposed by this section during any cal25 endar month. 
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1 ‘‘(b) MULTIPLE VIOLATIONS.—In determining the pen2 alty under subsection (a) on any person, subsection (a) shall 

3 be applied by increasing the amount in subsection (a) by 

4 the product of such amount and the number of prior pen5 alties (if any) imposed by this section on such person (or 

6 a related person or any predecessor of such person or related 

7 person). 

8 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

9 shall be imposed under this section with respect to any fail10 ure if it is shown that such failure is due to reasonable 

11 cause.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions for part I of subchapter B of chapter 68, as 

14 amended by section 5241 of this Act, is amended by 

15 adding at the end the following new item: 

‘‘Sec. 6719. Failure to display registration of vessel.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall take effect on October 1, 2004. 

18 SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN 

19 TRADE ZONES, ETC. 

20 (a) IN GENERAL.—Section 4101(a), as amended by 

21 section 5242 of this Act, is amended by redesignating para22 graph (2) as paragraph (3), and by inserting after para23 graph (1) the following new paragraph: 
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1 ‘‘(2) REGISTRATION OF PERSONS WITHIN FOR2 EIGN TRADE ZONES, ETC..—The Secretary shall re3 quire registration by any person which— 

4 ‘‘(A) operates a terminal or refinery within 

5 a foreign trade zone or within a customs bonded 

6 storage facility, or 

7 ‘‘(B) holds an inventory position with re8 spect to a taxable fuel in such a terminal.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by this 

10 section shall take effect on October 1, 2004. 

11 SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND 

12 FAILURE TO REPORT. 

13 (a) INCREASED PENALTY.—Subsection (a) of section 

14 7272 (relating to penalty for failure to register) is amended 

15 by inserting ‘‘($10,000 in the case of a failure to register 

16 under section 4101)’’ after ‘‘$50’’. 

17 (b) INCREASED CRIMINAL PENALTY.—Section 7232 

18 (relating to failure to register under section 4101, false rep19 resentations of registration status, etc.) is amended by strik20 ing ‘‘$5,000’’ and inserting ‘‘$10,000’’. 

21 (c) ASSESSABLE PENALTY FOR FAILURE TO REG22 ISTER.— 

23 (1) IN GENERAL.—Part I of subchapter B of 

24 chapter 68 (relating to assessable penalties), as 
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1 amended by section 5242 of this Act, is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 6720. FAILURE TO REGISTER. 

4 ‘‘(a) FAILURE TO REGISTER.—Every person who is re5 quired to register under section 4101 and fails to do so shall 

6 pay a penalty in addition to the tax (if any). 

7 ‘‘(b) AMOUNT OF PENALTY.—The amount of the pen8 alty under subsection (a) shall be— 

9 ‘‘(1) $10,000 for each initial failure to register, 

10 and 

11 ‘‘(2) $1,000 for each day thereafter such person 

12 fails to register. 

13 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

14 shall be imposed under this section with respect to any fail15 ure if it is shown that such failure is due to reasonable 

16 cause.’’. 

17 (2) CLERICAL AMENDMENT.—The table of sec18 tions for part I of subchapter B of chapter 68, as 

19 amended by section 5242 of this Act, is amended by 

20 adding at the end the following new item: 

‘‘Sec. 6720. Failure to register.’’. 

21 (d) ASSESSABLE PENALTY FOR FAILURE TO RE22 PORT.— 

23 (1) IN GENERAL.—Part II of subchapter B of 

24 chapter 68 (relating to assessable penalties) is amend25 ed by adding at the end the following new section: 
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1 ‘‘SEC. 6725. FAILURE TO REPORT INFORMATION UNDER 

2 SECTION 4101. 

3 ‘‘(a) IN GENERAL.—In the case of each failure de4 scribed in subsection (b) by any person with respect to a 

5 vessel or facility, such person shall pay a penalty of $10,000 

6 in addition to the tax (if any). 

7 ‘‘(b) FAILURES SUBJECT TO PENALTY.—For purposes 

8 of subsection (a), the failures described in this subsection 

9 are— 

10 ‘‘(1) any failure to make a report under section 

11 4101(d) on or before the date prescribed therefor, and 

12 ‘‘(2) any failure to include all of the information 

13 required to be shown on such report or the inclusion 

14 of incorrect information. 

15 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

16 shall be imposed under this section with respect to any fail17 ure if it is shown that such failure is due to reasonable 

18 cause.’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions for part II of subchapter B of chapter 68 is 

21 amended by adding at the end the following new item: 

‘‘Sec. 6725. Failure to report information under section 4101.’’. 

22 (e) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to failures pending or occurring after 

24 September 30, 2004. 
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1 SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIM2 ING CERTAIN TAX BENEFITS. 

3 (a) IN GENERAL.—Subpart C of part III of subchapter 

4 A of chapter 32 is amended by adding at the end the fol5 lowing new section: 

6 ‘‘SEC. 4104. INFORMATION REPORTING FOR PERSONS 

7 CLAIMING CERTAIN TAX BENEFITS. 

8 ‘‘(a) IN GENERAL.—The Secretary shall require any 

9 person claiming tax benefits— 

10 ‘‘(1) under the provisions of section 34, 40, and 

11 40A to file a return at the time such person claims 

12 such benefits (in such manner as the Secretary may 

13 prescribe), and 

14 ‘‘(2) under the provisions of section 4041(b)(2), 

15 6426, or 6427(e) to file a monthly return (in such 

16 manner as the Secretary may prescribe). 

17 ‘‘(b) CONTENTS OF RETURN.—Any return filed under 

18 this section shall provide such information relating to such 

19 benefits and the coordination of such benefits as the Sec20 retary may require to ensure the proper administration and 

21 use of such benefits. 

22 ‘‘(c) ENFORCEMENT.—With respect to any person de23 scribed in subsection (a) and subject to registration require24 ments under this title, rules similar to rules of section 

25 4222(c) shall apply with respect to any requirement under 

26 this section.’’. 
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HR 3550 EAS 

1 (b) CONFORMING AMENDMENT.—The table of sections 

2 for subpart C of part III of subchapter A of chapter 32 

3 is amended by adding at the end the following new item: 

‘‘Sec. 4104. Information reporting for persons claiming certain tax benefits.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect on October 1, 2004. 

6 SEC. 5246. ELECTRONIC REPORTING. 

7 (a) IN GENERAL.—Section 4101(d), as amended by 

8 section 5273 of this Act, is amended by adding at the end 

9 the following new sentence: ‘‘Any person who is required 

10 to report under this subsection and who has 25 or more 

11 reportable transactions in a month shall file such report 

12 in electronic format.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply on October 1, 2004. 

15 PART V—IMPORTS 

16 SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT 

17 REGISTERED. 

18 (a) TAX AT POINT OF ENTRY WHERE IMPORTER NOT

19 REGISTERED.— 

20 (1) IN GENERAL.—Subpart C of part III of sub21 chapter A of chapter 31, as amended by section 5245 

22 of this Act, is amended by adding at the end the fol23 lowing new section: 
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1 ‘‘SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REG2 ISTERED. 

3 ‘‘(a) IN GENERAL.—Any tax imposed under this part 

4 on any person not registered under section 4101 for the 

5 entry of a fuel into the United States shall be imposed at 

6 the time and point of entry. 

7 ‘‘(b) ENFORCEMENT OF ASSESSMENT.—If any person 

8 liable for any tax described under subsection (a) has not 

9 paid the tax or posted a bond, the Secretary may— 

10 ‘‘(1) seize the fuel on which the tax is due, or 

11 ‘‘(2) detain any vehicle transporting such fuel, 

12 until such tax is paid or such bond is filed. 

13 ‘‘(c) LEVY OF FUEL.—If no tax has been paid or no 

14 bond has been filed within 5 days from the date the Sec15 retary seized fuel pursuant to subsection (b), the Secretary 

16 may sell such fuel as provided under section 6336.’’. 

17 (2) CONFORMING AMENDMENT.—The table of sec18 tions for subpart C of part III of subchapter A of 

19 chapter 31 of the Internal Revenue Code of 1986, as 

20 amended by section 5245 of this Act, is amended by 

21 adding after the last item the following new item: 

‘‘Sec. 4105. Tax at entry where importer not registered.’’. 

22 (b) DENIAL OF ENTRY WHERE TAX NOT PAID.—The 

23 Secretary of Homeland Security is authorized to deny entry 

24 into the United States of any shipment of a fuel which is 

25 taxable under section 4081 of the Internal Revenue Code 
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1 of 1986 if the person entering such shipment fails to pay 

2 the tax imposed under such section or post a bond in ac3 cordance with the provisions of section 4105 of such Code. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect on the date of the enactment of this 

6 Act. 

7 SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO EN8 TERED CARGO. 

9 (a) IN GENERAL.—Subsection (a) of section 343 of the 

10 Trade Act of 2002 is amended by inserting at the end the 

11 following new paragraph: 

12 ‘‘(4) IN GENERAL.—Subject to paragraphs (2) 

13 and (3), not later than 1 year after the enactment of 

14 this paragraph, the Secretary of Homeland Security, 

15 together with the Secretary of the Treasury, shall pro16 mulgate regulations providing for the transmission to 

17 the Internal Revenue Service, through an electronic 

18 data interchange system, of information pertaining to 

19 cargo of taxable fuels (as defined in section 4083 of 

20 the Internal Revenue Code of 1986) destined for im21 portation into the United States prior to such impor22 tation.’’. 

23 (b) EFFECTIVE DATE.—The amendment made by this 

24 section shall take effect on the date of the enactment of this 

25 Act. 
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1 PART VI—MISCELLANEOUS PROVISIONS 

2 SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUIT3 ABLE FOR USE OR NOT IN A DIESEL-POW4 ERED VEHICLE OR TRAIN. 

5 (a) IN GENERAL.—Section 4083(a)(3) is amended— 

6 (1) by striking ‘‘The term’’ and inserting the fol7 lowing: 

8 ‘‘(A) IN GENERAL.—The term’’, and 

9 (2) by inserting at the end the following new 

10 subparagraph: 

11 ‘‘(B) LIQUID SOLD AS DIESEL FUEL.—The 

12 term ‘diesel fuel’ includes any liquid which is 

13 sold as or offered for sale as a fuel in a diesel14 powered highway vehicle or a diesel-powered 

15 train.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 40A(b)(1)(B), as amended by section 

18 5103 of this Act, is amended by striking ‘‘4083(a)(3)’’ 

19 and inserting ‘‘4083(a)(3)(A)’’. 

20 (2) Section 6426(c)(3), as added by section 5102 

21 of this Act, is amended by striking ‘‘4083(a)(3)’’ and 

22 inserting ‘‘4083(a)(3)(A)’’. 

23 (c) EFFECTIVE DATE.—The amendments made by this 

24 section shall take effect on the date of the enactment of this 

25 Act. 
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HR 3550 EAS 

1 SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND 

2 CLAIMS WITH RESPECT TO FARMING. 

3 (a) IN GENERAL.— 

4 (1) REFUNDS.—Section 6427(l) is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(6) REGISTERED VENDORS PERMITTED TO AD7 MINISTER CERTAIN CLAIMS FOR REFUND OF DIESEL

8 FUEL AND KEROSENE SOLD TO FARMERS.— 

9 ‘‘(A) IN GENERAL.—In the case of diesel fuel 

10 or kerosene used on a farm for farming purposes 

11 (within the meaning of section 6420(c)), para12 graph (1) shall not apply to the aggregate 

13 amount of such diesel fuel or kerosene if such 

14 amount does not exceed 500 gallons (as deter15 mined under subsection (i)(5)(A)(iii)). 

16 ‘‘(B) PAYMENT TO ULTIMATE VENDOR.—The 

17 amount which would (but for subparagraph (A)) 

18 have been paid under paragraph (1) with respect 

19 to any fuel shall be paid to the ultimate vendor 

20 of such fuel, if such vendor— 

21 ‘‘(i) is registered under section 4101, 

22 and 

23 ‘‘(ii) meets the requirements of sub24 paragraph (A), (B), or (D) of section 

25 6416(a)(1).’’. 
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HR 3550 EAS 

1 (2) FILING OF CLAIMS.—Section 6427(i) is 

2 amended by inserting at the end the following new 

3 paragraph: 

4 ‘‘(5) SPECIAL RULE FOR VENDOR REFUNDS WITH

5 RESPECT TO FARMERS.— 

6 ‘‘(A) IN GENERAL.—A claim may be filed 

7 under subsection (l)(6) by any person with re8 spect to fuel sold by such person for any pe9 riod— 

10 ‘‘(i) for which $200 or more ($100 or 

11 more in the case of kerosene) is payable 

12 under subsection (l)(6), 

13 ‘‘(ii) which is not less than 1 week, 

14 and 

15 ‘‘(iii) which is for not more than 500 

16 gallons for each farmer for which there is a 

17 claim. 

18 Notwithstanding subsection (l)(1), paragraph 

19 (3)(B) shall apply to claims filed under the pre20 ceding sentence. 

21 ‘‘(B) TIME FOR FILING CLAIM.—No claim 

22 filed under this paragraph shall be allowed un23 less filed on or before the last day of the first 

24 quarter following the earliest quarter included in 

25 the claim.’’. 
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HR 3550 EAS 

1 (3) CONFORMING AMENDMENTS.— 

2 (A) Section 6427(l)(5)(A) is amended to 

3 read as follows: 

4 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

5 not apply to diesel fuel or kerosene used by a 

6 State or local government.’’. 

7 (B) The heading for section 6427(l)(5) is 

8 amended by striking ‘‘FARMERS AND’’. 

9 (b) EFFECTIVE DATE.—The amendment made by this 

10 section shall apply to fuels sold for nontaxable use after the 

11 date of the enactment of this Act. 

12 SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTI13 MATE VENDORS. 

14 (a) IN GENERAL.—Paragraph (4) of section 6416(a) 

15 (relating to abatements, credits, and refunds) is amended 

16 to read as follows: 

17 ‘‘(4) REGISTERED ULTIMATE VENDOR TO ADMIN18 ISTER CREDITS AND REFUNDS OF GASOLINE TAX.— 

19 ‘‘(A) IN GENERAL.—For purposes of this 

20 subsection, if an ultimate vendor purchases any 

21 gasoline on which tax imposed by section 4081 

22 has been paid and sells such gasoline to an ulti23 mate purchaser described in subparagraph (C) 

24 or (D) of subsection (b)(2) (and such gasoline is 

25 for a use described in such subparagraph), such 
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HR 3550 EAS 

1 ultimate vendor shall be treated as the person 

2 (and the only person) who paid such tax, but 

3 only if such ultimate vendor is registered under 

4 section 4101. For purposes of this subparagraph, 

5 if the sale of gasoline is made by means of a 

6 credit card, the person extending the credit to the 

7 ultimate purchaser shall be deemed to be the ulti8 mate vendor. 

9 ‘‘(B) TIMING OF CLAIMS.—The procedure 

10 and timing of any claim under subparagraph 

11 (A) shall be the same as for claims under section 

12 6427(i)(4), except that the rules of section 

13 6427(i)(3)(B) regarding electronic claims shall 

14 not apply unless the ultimate vendor has cer15 tified to the Secretary for the most recent quarter 

16 of the taxable year that all ultimate purchasers 

17 of the vendor are certified and entitled to a re18 fund under subparagraph (C) or (D) of sub19 section (b)(2).’’. 

20 (b) CREDIT CARD PURCHASES OF DIESEL FUEL OR

21 KEROSENE BY STATE AND LOCAL GOVERNMENTS.—Section 

22 6427(l)(5)(C) (relating to nontaxable uses of diesel fuel, ker23 osene, and aviation fuel), as amended by section 5252 of 

24 this Act, is amended by adding at the end the following 

25 new sentence: ‘‘For purposes of this subparagraph, if the 
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1 sale of diesel fuel or kerosene is made by means of a credit 

2 card, the person extending the credit to the ultimate pur3 chaser shall be deemed to be the ultimate vendor.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect on October 1, 2004. 

6 SEC. 5264. TWO-PARTY EXCHANGES. 

7 (a) IN GENERAL.—Subpart C of part III of subchapter 

8 A of chapter 32, as amended by section 5251 of this Act, 

9 is amended by adding at the end the following new section: 

10 ‘‘SEC. 4106. TWO-PARTY EXCHANGES. 

11 ‘‘(a) IN GENERAL.—In a two-party exchange, the de12 livering person shall not be liable for the tax imposed under 

13 of section 4081(a)(1)(A)(ii). 

14 ‘‘(b) TWO-PARTY EXCHANGE.—The term ‘two-party 

15 exchange’ means a transaction, other than a sale, in which 

16 taxable fuel is transferred from a delivering person reg17 istered under section 4101 as a taxable fuel registrant to 

18 a receiving person who is so registered where all of the fol19 lowing occur: 

20 ‘‘(1) The transaction includes a transfer from the 

21 delivering person, who holds the inventory position 

22 for taxable fuel in the terminal as reflected in the 

23 records of the terminal operator. 
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1 ‘‘(2) The exchange transaction occurs before or 

2 contemporaneous with completion of removal across 

3 the rack from the terminal by the receiving person. 

4 ‘‘(3) The terminal operator in its books and 

5 records treats the receiving person as the person that 

6 removes the product across the terminal rack for pur7 poses of reporting the transaction to the Secretary. 

8 ‘‘(4) The transaction is the subject of a written 

9 contract.’’. 

10 (b) CONFORMING AMENDMENT.—The table of sections 

11 for subpart C of part III of subchapter A of chapter 32, 

12 as amended by section 5251 of this Act, is amended by add13 ing after the last item the following new item: 

‘‘Sec. 4106. Two-party exchanges.’’. 

14 (c) EFFECTIVE DATE.—The amendment made by this 

15 section shall take effect on the date of the enactment of this 

16 Act. 

17 SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VE18 HICLES. 

19 (a) NO PRORATION OF TAX UNLESS VEHICLE IS DE20 STROYED OR STOLEN.— 

21 (1) IN GENERAL.—Section 4481(c) (relating to 

22 proration of tax) is amended to read as follows: 

23 ‘‘(c) PRORATION OF TAX WHERE VEHICLE SOLD, DE24 STROYED, OR STOLEN.— 
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HR 3550 EAS 

1 ‘‘(1) IN GENERAL.—If in any taxable period a 

2 highway motor vehicle is sold, destroyed, or stolen be3 fore the first day of the last month in such period and 

4 not subsequently used during such taxable period, the 

5 tax shall be reckoned proportionately from the first 

6 day of the month in such period in which the first use 

7 of such highway motor vehicle occurs to and including 

8 the last day of the month in which such highway 

9 motor vehicle was sold, destroyed, or stolen. 

10 ‘‘(2) DESTROYED.—For purposes of paragraph 

11 (1), a highway motor vehicle is destroyed if such vehi12 cle is damaged by reason of an accident or other cas13 ualty to such an extent that it is not economic to re14 build.’’. 

15 (2) CONFORMING AMENDMENTS.— 

16 (A) Section 6156 (relating to installment 

17 payment of tax on use of highway motor vehi18 cles) is repealed. 

19 (B) The table of sections for subchapter A of 

20 chapter 62 is amended by striking the item relat21 ing to section 6156. 

22 (b) DISPLAY OF TAX CERTIFICATE.—Paragraph (2) of 

23 section 4481(d) (relating to one tax liability for period) is 

24 amended to read as follows: 
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HR 3550 EAS 

1 ‘‘(2) DISPLAY OF TAX CERTIFICATE.—Every tax2 payer which pays the tax imposed under this section 

3 with respect to a highway motor vehicle shall, not 

4 later than 1 month after the due date of the return 

5 of tax with respect to each taxable period, receive and 

6 display on such vehicle an electronic identification 

7 device prescribed by the Secretary.’’. 

8 (c) ELECTRONIC FILING.—Section 4481, as amended 

9 by section 5001 of this Act, is amended by redesignating 

10 subsection (e) as subsection (f) and by inserting after sub11 section (d) the following new subsection: 

12 ‘‘(e) ELECTRONIC FILING.—Any taxpayer who files a 

13 return under this section with respect to 25 or more vehicles 

14 for any taxable period shall file such return electronically.’’. 

15 (d) REPEAL OF REDUCTION IN TAX FOR CERTAIN

16 TRUCKS.—Section 4483 of the Internal Revenue Code of 

17 1986 is amended by striking subsection (f). 

18 (e) EFFECTIVE DATES.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section shall 

21 apply to taxable periods beginning after the date of 

22 the enactment of this Act. 

23 (2) SUBSECTION (b).—The amendment made by 

24 subsection (b) shall take effect on October 1, 2005. 
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1 SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PEN2 ALTIES TO THE HIGHWAY TRUST FUND. 

3 (a) IN GENERAL.—Subsection (b) of section 9503 (re4 lating to transfer to Highway Trust Fund of amounts 

5 equivalent to certain taxes), as amended by section 5001 

6 of this Act, is amended by redesignating paragraph (5) as 

7 paragraph (6) and inserting after paragraph (4) the fol8 lowing new paragraph: 

9 ‘‘(5) CERTAIN PENALTIES.—There are hereby ap10 propriated to the Highway Trust Fund amounts 

11 equivalent to the penalties assessed under sections 

12 6715, 6715A, 6717, 6718, 6719, 6720, 6725, 7232, 

13 and 7272 (but only with regard to penalties under 

14 such section related to failure to register under section 

15 4101).’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) The heading of subsection (b) of section 9503 

18 is amended by inserting ‘‘AND PENALTIES’’ after 

19 ‘‘TAXES’’. 

20 (2) The heading of paragraph (1) of section 

21 9503(b) is amended by striking ‘‘IN GENERAL’’ and 

22 inserting ‘‘CERTAIN TAXES’’. 

23 (c) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply to penalties assessed after October 1, 

25 2004. 
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1 SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO 

2 DELIVERY OF FUEL TO MOTOR VEHICLES RE3 MOVED FROM UNITED STATES. 

4 (a) IN GENERAL.—Section 4221(d)(2) (defining ex5 port) is amended by adding at the end the following new 

6 sentence: ‘‘Such term does not include the delivery of a tax7 able fuel (as defined in section 4083(a)(1)) into a fuel tank 

8 of a motor vehicle which is shipped or driven out of the 

9 United States.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 4041(g) (relating to other exemp12 tions) is amended by adding at the end the following 

13 new sentence: ‘‘Paragraph (3) shall not apply to the 

14 sale for delivery of a liquid into a fuel tank of a 

15 motor vehicle which is shipped or driven out of the 

16 United States.’’. 

17 (2) Clause (iv) of section 4081(a)(1)(A) (relating 

18 to tax on removal, entry, or sale) is amended by in19 serting ‘‘or at a duty-free sales enterprise (as defined 

20 in section 555(b)(8) of the Tariff Act of 1930)’’ after 

21 ‘‘section 4101’’. 

22 (c) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to sales or deliveries made after the date 

24 of the enactment of this Act. 
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1 PART VII—TOTAL ACCOUNTABILITY 

2 SEC. 5271. TOTAL ACCOUNTABILITY. 

3 (a) TAXATION OF REPORTABLE LIQUIDS.— 

4 (1) IN GENERAL.—Section 4081(a), as amended 

5 by this Act, is amended— 

6 (A) by inserting ‘‘or reportable liquid’’ after 

7 ‘‘taxable fuel’’ each place it appears, and 

8 (B) by inserting ‘‘such liquid’’ after ‘‘such 

9 fuel’’ in paragraph (1)(A)(iv). 

10 (2) RATE OF TAX.—Subparagraph (A) of section 

11 4081(a)(2), as amended by section 5211 of this Act, 

12 is amended by striking ‘‘and’’ at the end of clause 

13 (iii), by striking the period at the end of clause (iv) 

14 and inserting ‘‘, and’’, and by adding at the end the 

15 following new clause: 

16 ‘‘(v) in the case of reportable liquids, 

17 the rate determined under section 

18 4083(c)(2).’’. 

19 (3) EXEMPTION.—Section 4081(a)(1) is amended 

20 by adding at the end the following new subparagraph: 

21 ‘‘(C) EXEMPTION FOR REGISTERED TRANS22 FERS OF REPORTABLE LIQUIDS.—The tax im23 posed by this paragraph shall not apply to any 

24 removal, entry, or sale of a reportable liquid if— 

25 ‘‘(i) such removal, entry, or sale is to 

26 a registered person who certifies that such 
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1 liquid will not be used as a fuel or in the 

2 production of a fuel, or 

3 ‘‘(ii) the sale is to the ultimate pur4 chaser of such liquid.’’. 

5 (4) REPORTABLE LIQUIDS.—Section 4083, as 

6 amended by this Act, is amended by redesignating 

7 subsections (c) and (d) (as redesignated by section 

8 5211 of this Act) as subsections (d) and (e), respec9 tively, and by inserting after subsection (b) the fol10 lowing new section: 

11 ‘‘(c) REPORTABLE LIQUID.—For purposes of this sub12 part— 

13 ‘‘(1) IN GENERAL.—The term ‘reportable liquid’ 

14 means any petroleum-based liquid other than a tax15 able fuel. 

16 ‘‘(2) TAXATION.— 

17 ‘‘(A) GASOLINE BLEND STOCKS AND ADDI18 TIVES.—Gasoline blend stocks and additives 

19 which are reportable liquids (as defined in para20 graph (1)) shall be subject to the rate of tax 

21 under clause (i) of section 4081(a)(2)(A). 

22 ‘‘(B) OTHER REPORTABLE LIQUIDS.—Any 

23 reportable liquid (as defined in paragraph (1)) 

24 not described in subparagraph (A) shall be sub-
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1 ject to the rate of tax under clause (iii) of section 

2 4081(a)(2)(A).’’. 

3 (5) CONFORMING AMENDMENTS.— 

4 (A) Section 4081(e) is amended by inserting 

5 ‘‘or reportable liquid’’ after ‘‘taxable fuel’’. 

6 (B) Section 4083(d) (relating to certain use 

7 defined as removal), as redesignated by para8 graph (4), is amended by inserting ‘‘or report9 able liquid’’ after ‘‘taxable fuel’’. 

10 (C) Section 4083(e)(1) (relating to adminis11 trative authority), as redesignated by paragraph 

12 (4), is amended— 

13 (i) in subparagraph (A)— 

14 (I) by inserting ‘‘or reportable liq15 uid’’ after ‘‘taxable fuel’’, and 

16 (II) by inserting ‘‘or such liquid’’ 

17 after ‘‘such fuel’’ each place it appears, 

18 and 

19 (ii) in subparagraph (B), by inserting 

20 ‘‘or any reportable liquid’’ after ‘‘any tax21 able fuel’’. 

22 (D) Section 4101(a)(2), as added by section 

23 5243 of this Act, is amended by inserting ‘‘or a 

24 reportable liquid’’ after ‘‘taxable fuel’’. 
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1 (E) Section 4101(a)(3), as added by section 

2 5242 of this Act and redesignated by section 

3 5243 of this Act, is amended by inserting ‘‘or 

4 any reportable liquid’’ before the period at the 

5 end. 

6 (F) Section 4102 is amended by inserting 

7 ‘‘or any reportable liquid’’ before the period at 

8 the end. 

9 (G)(i) Section 6718, as added by section 

10 5241 of this Act, is amended— 

11 (I) in subsection (a), by inserting ‘‘or 

12 any reportable liquid (as defined in section 

13 4083(c)(1))’’ after ‘‘ section 4083(a)(1))’’, 

14 and 

15 (II) in the heading, by inserting ‘‘or 

16 reportable liquids’’ after ‘‘taxable fuel’’. 

17 (ii) The item relating to section 6718 in 

18 table of sections for part I of subchapter B of 

19 chapter 68, as added by section 5241 of this Act, 

20 is amended by inserting ‘‘or reportable liquids’’ 

21 after ‘‘taxable fuels’’. 

22 (H) Section 6427(h) is amended to read as 

23 follows: 
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HR 3550 EAS 

1 ‘‘(h) GASOLINE BLEND STOCKS OR ADDITIVES AND

2 REPORTABLE LIQUIDS.—Except as provided in subsection 

3 (k)— 

4 ‘‘(1) if any gasoline blend stock or additive 

5 (within the meaning of section 4083(a)(2)) is not 

6 used by any person to produce gasoline and such per7 son establishes that the ultimate use of such gasoline 

8 blend stock or additive is not to produce gasoline, or 

9 ‘‘(2) if any reportable liquid (within the mean10 ing of section 4083(c)(1)) is not used by any person 

11 to produce a taxable fuel and such person establishes 

12 that the ultimate use of such reportable liquid is not 

13 to produce a taxable fuel, 

14 then the Secretary shall pay (without interest) to such per15 son an amount equal to the aggregate amount of the tax 

16 imposed on such person with respect to such gasoline blend 

17 stock or additive or such reportable fuel.’’. 

18 (I) Section 7232, as amended by this Act, 

19 is amended by inserting ‘‘or reportable liquid 

20 (within the meaning of section 4083(c)(1))’’ after 

21 ‘‘section 4083)’’. 

22 (J) Section 343 of the Trade Act of 2002, as 

23 amended by section 5252 of this Act, is amended 

24 by inserting ‘‘and reportable liquids (as defined 
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1 in section 4083(c)(1) of such Code)’’ after ‘‘Inter2 nal Revenue Code of 1986)’’. 

3 (b) DYED DIESEL.—Section 4082(a) is amended by 

4 striking ‘‘and’’ at the end of paragraph (2), by striking the 

5 period at the end of paragraph (3) and inserting ‘‘and’’, 

6 and by inserting after paragraph (3) the following new 

7 paragraph: 

8 ‘‘(4) which is removed, entered, or sold by a per9 son registered under section 4101.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to reportable liquids (as defined in sec12 tion 4083(c) of the Internal Revenue Code) and fuel sold 

13 or used after September 30, 2004. 

14 SEC. 5272. EXCISE TAX REPORTING. 

15 (a) IN GENERAL.—Part II of subchapter A of chapter 

16 61 is amended by adding at the end the following new sub17 part: 

18 ‘‘Subpart E—Excise Tax Reporting 

19 ‘‘SEC. 6025. RETURNS RELATING TO FUEL TAXES. 

20 ‘‘(a) IN GENERAL.—The Secretary shall require any 

21 person liable for the tax imposed under Part III of sub22 chapter A of chapter 32 to file a return of such tax on a 

23 monthly basis. 

24 ‘‘(b) INFORMATION INCLUDED WITH RETURN.—The 

25 Secretary shall require any person filing a return under 
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1 subsection (a) to provide information regarding any refined 

2 product (whether or not such product is taxable under this 

3 title) removed from a terminal during the period for which 

4 such return applies.’’. 

5 (b) CONFORMING AMENDMENT.—The table of parts for 

6 subchapter A of chapter 61 is amended by adding at the 

7 end the following new item: 

‘‘Subpart E—Excise Tax Reporting’’. 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to fuel sold or used after September 30, 

10 2004. 

11 SEC. 5273. INFORMATION REPORTING. 

12 (a) IN GENERAL.—Section 4101(d) is amended by 

13 adding at the end the following new flush sentence: 

14 ‘‘The Secretary shall require reporting under the previous 

15 sentence with respect to taxable fuels removed, entered, or 

16 transferred from any refinery, pipeline, or vessel which is 

17 registered under this section.’’. 

18 (b) EFFECTIVE DATE.—The amendment made by this 

19 section shall apply on October 1, 2004. 

20 Subtitle D—Definition of Highway 

21 Vehicle 

22 SEC. 5301. EXEMPTION FROM CERTAIN EXCISE TAXES FOR 

23 MOBILE MACHINERY. 

24 (a) EXEMPTION FROM TAX ON HEAVY TRUCKS AND

25 TRAILERS SOLD AT RETAIL.— 
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1 (1) IN GENERAL.—Section 4053 (relating to ex2 emptions) is amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(8) MOBILE MACHINERY.—Any vehicle which 

5 consists of a chassis— 

6 ‘‘(A) to which there has been permanently 

7 mounted (by welding, bolting, riveting, or other 

8 means) machinery or equipment to perform a 

9 construction, manufacturing, processing, farm10 ing, mining, drilling, timbering, or similar oper11 ation if the operation of the machinery or equip12 ment is unrelated to transportation on or off the 

13 public highways, 

14 ‘‘(B) which has been specially designed to 

15 serve only as a mobile carriage and mount (and 

16 a power source, where applicable) for the par17 ticular machinery or equipment involved, wheth18 er or not such machinery or equipment is in op19 eration, and 

20 ‘‘(C) which, by reason of such special de21 sign, could not, without substantial structural 

22 modification, be used as a component of a vehicle 

23 designed to perform a function of transporting 

24 any load other than that particular machinery 
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1 or equipment or similar machinery or equipment 

2 requiring such a specially designed chassis.’’. 

3 (2) EFFECTIVE DATE.—The amendment made by 

4 this subsection shall take effect on the day after the 

5 date of the enactment of this Act. 

6 (b) EXEMPTION FROM TAX ON USE OF CERTAIN VEHI7 CLES.— 

8 (1) IN GENERAL.—Section 4483 (relating to ex9 emptions) is amended by redesignating subsection (g) 

10 as subsection (h) and by inserting after subsection (f) 

11 the following new subsection: 

12 ‘‘(g) EXEMPTION FOR MOBILE MACHINERY.—No tax 

13 shall be imposed by section 4481 on the use of any vehicle 

14 described in section 4053(8).’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall take effect on the day after the 

17 date of the enactment of this Act. 

18 (d) EXEMPTION FROM FUEL TAXES.— 

19 (1) IN GENERAL.—Section 6421(e)(2) (defining 

20 off-highway business use) is amended by adding at 

21 the end the following new subparagraph: 

22 ‘‘(C) USES IN MOBILE MACHINERY.— 

23 ‘‘(i) IN GENERAL.—The term ‘off-high24 way business use’ shall include any use in 
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1 a vehicle which meets the requirements de2 scribed in clause (ii). 

3 ‘‘(ii) REQUIREMENTS FOR MOBILE MA4 CHINERY.—The requirements described in 

5 this clause are— 

6 ‘‘(I) the design-based test, and 

7 ‘‘(II) the use-based test. 

8 ‘‘(iii) DESIGN-BASED TEST.—For pur9 poses of clause (ii)(I), the design-based test 

10 is met if the vehicle consists of a chassis— 

11 ‘‘(I) to which there has been per12 manently mounted (by welding, bolt13 ing, riveting, or other means) machin14 ery or equipment to perform a con15 struction, manufacturing, processing, 

16 farming, mining, drilling, timbering, 

17 or similar operation if the operation of 

18 the machinery or equipment is unre19 lated to transportation on or off the 

20 public highways, 

21 ‘‘(II) which has been specially de22 signed to serve only as a mobile car23 riage and mount (and a power source, 

24 where applicable) for the particular 

25 machinery or equipment involved, 
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1 whether or not such machinery or 

2 equipment is in operation, and 

3 ‘‘(III) which, by reason of such 

4 special design, could not, without sub5 stantial structural modification, be 

6 used as a component of a vehicle de7 signed to perform a function of trans8 porting any load other than that par9 ticular machinery or equipment or 

10 similar machinery or equipment re11 quiring such a specially designed chas12 sis. 

13 ‘‘(iv) USE-BASED TEST.—For purposes 

14 of clause (ii)(II), the use-based test is met if 

15 the use of the vehicle on public highways 

16 was less than 5,000 miles during the tax17 payer’s taxable year. 

18 ‘‘(v) SPECIAL RULE FOR USE BY CER19 TAIN TAX-EXEMPT ORGANIZATIONS.—In the 

20 case of any use in a vehicle by an organiza21 tion which is described in section 501(c) 

22 and exempt from tax under section 501(a), 

23 clause (ii) shall be applied without regard 

24 to subclause (II) thereof.’’. 
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1 (2) ANNUAL REFUND OF TAX PAID.—Section 

2 6427(i)(2) (relating to exceptions) is amended by add3 ing at the end the following new subparagraph: 

4 ‘‘(C) NONAPPLICATION OF PARAGRAPH.— 

5 This paragraph shall not apply to any fuel used 

6 in any off-highway business use described in sec7 tion 6421(e)(2)(C).’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to taxable years begin10 ning after the date of the enactment of this Act. 

11 SEC. 5302. MODIFICATION OF DEFINITION OF OFF-HIGHWAY 

12 VEHICLE. 

13 (a) IN GENERAL.—Section 7701(a) (relating to defini14 tions) is amended by adding at the end the following new 

15 paragraph: 

16 ‘‘(48) OFF-HIGHWAY VEHICLES.— 

17 ‘‘(A) OFF-HIGHWAY TRANSPORTATION VEHI18 CLES.— 

19 ‘‘(i) IN GENERAL.—A vehicle shall not 

20 be treated as a highway vehicle if such vehi21 cle is specially designed for the primary 

22 function of transporting a particular type 

23 of load other than over the public highway 

24 and because of this special design such vehi25 cle’s capability to transport a load over the 
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1 public highway is substantially limited or 

2 impaired. 

3 ‘‘(ii) DETERMINATION OF VEHICLE’S

4 DESIGN.—For purposes of clause (i), a vehi5 cle’s design is determined solely on the basis 

6 of its physical characteristics. 

7 ‘‘(iii) DETERMINATION OF SUBSTAN8 TIAL LIMITATION OR IMPAIRMENT.—For 

9 purposes of clause (i), in determining 

10 whether substantial limitation or impair11 ment exists, account may be taken of factors 

12 such as the size of the vehicle, whether such 

13 vehicle is subject to the licensing, safety, 

14 and other requirements applicable to high15 way vehicles, and whether such vehicle can 

16 transport a load at a sustained speed of at 

17 least 25 miles per hour. It is immaterial 

18 that a vehicle can transport a greater load 

19 off the public highway than such vehicle is 

20 permitted to transport over the public high21 way. 

22 ‘‘(B) NONTRANSPORTATION TRAILERS AND

23 SEMITRAILERS.—A trailer or semitrailer shall 

24 not be treated as a highway vehicle if it is spe25 cially designed to function only as an enclosed 
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1 stationary shelter for the carrying on of an off2 highway function at an off-highway site.’’. 

3 (c) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendment made by this section shall 

6 take effect on the date of the enactment of this Act. 

7 (2) FUEL TAXES.—With respect to taxes imposed 

8 under subchapter B of chapter 31 and part III of sub9 chapter A of chapter 32, the amendment made by this 

10 section shall apply to taxable periods beginning after 

11 the date of the enactment of this Act. 

12 Subtitle E—Excise Tax Reform and 

13 Simplification 

14 PART I—HIGHWAY EXCISE TAXES 

15 SEC. 5401. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY 

16 TRUST FUND. 

17 (a) IN GENERAL.—Section 9503(b)(1) (relating to 

18 transfer to Highway Trust Fund of amounts equivalent to 

19 certain taxes), as amended by section 5101 of this Act, is 

20 amended by redesignating subparagraphs (C), (D), and (E) 

21 as subparagraphs (D), (E), and (F), respectively, and by 

22 inserting after subparagraph (B) the following new sub23 paragraph: 

24 ‘‘(C) section 4064 (relating to gas guzzler 

25 tax),’’. 
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1 (b) UNIFORM APPLICATION OF TAX.—Subparagraph 

2 (A) of section 4064(b)(1) (defining automobile) is amended 

3 by striking the second sentence. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall take effect on the date of the enactment of this 

6 Act. 

7 SEC. 5402. REPEAL CERTAIN EXCISE TAXES ON RAIL DIESEL 

8 FUEL AND INLAND WATERWAY BARGE FUELS. 

9 (a) TAXES ON TRAINS.— 

10 (1) IN GENERAL.—Subparagraph (A) of section 

11 4041(a)(1) is amended by striking ‘‘or a diesel-pow12 ered train’’ each place it appears and by striking ‘‘or 

13 train’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Subparagraph (C) of section 

16 4041(a)(1), as amended by section 5001 of this 

17 Act, is amended by striking clause (ii) and by 

18 redesignating clause (iii) as clause (ii). 

19 (B) Subparagraph (C) of section 4041(b)(1) 

20 is amended by striking all that follows ‘‘section 

21 6421(e)(2)’’ and inserting a period. 

22 (C) Subsection (d) of section 4041 is 

23 amended by redesignating paragraph (3) as 

24 paragraph (4) and by inserting after paragraph 

25 (2) the following new paragraph: 
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1 ‘‘(3) DIESEL FUEL USED IN TRAINS.—There is 

2 hereby imposed a tax of 0.1 cent per gallon on any 

3 liquid other than gasoline (as defined in section 

4 4083)— 

5 ‘‘(A) sold by any person to an owner, lessee, 

6 or other operator of a diesel-powered train for 

7 use as a fuel in such train, or 

8 ‘‘(B) used by any person as a fuel in a die9 sel-powered train unless there was a taxable sale 

10 of such fuel under subparagraph (A). 

11 No tax shall be imposed by this paragraph on the sale 

12 or use of any liquid if tax was imposed on such liq13 uid under section 4081.’’. 

14 (D) Subsection (f) of section 4082 is amend15 ed by striking ‘‘section 4041(a)(1)’’ and inserting 

16 ‘‘subsections (d)(3) and (a)(1) of section 4041, 

17 respectively’’. 

18 (E) Subparagraphs (A) and (B) of section 

19 4083(a)(3), as amended by section 5261 of this 

20 Act, are amended by striking ‘‘or a diesel-pow21 ered train’’. 

22 (F) Paragraph (3) of section 6421(f) is 

23 amended to read as follows: 

24 ‘‘(3) GASOLINE USED IN TRAINS.—In the case of 

25 gasoline used as a fuel in a train, this section shall 
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1 not apply with respect to the Leaking Underground 

2 Storage Tank Trust Fund financing rate under sec3 tion 4081.’’. 

4 (G) Paragraph (3) of section 6427(l) is 

5 amended to read as follows: 

6 ‘‘(3) REFUND OF CERTAIN TAXES ON FUEL USED

7 IN DIESEL-POWERED TRAINS.—For purposes of this 

8 subsection, the term ‘nontaxable use’ includes fuel 

9 used in a diesel-powered train. The preceding sentence 

10 shall not apply to the tax imposed by section 4041(d) 

11 and the Leaking Underground Storage Tank Trust 

12 Fund financing rate under section 4081 except with 

13 respect to fuel sold for exclusive use by a State or any 

14 political subdivision thereof.’’. 

15 (b) FUEL USED ON INLAND WATERWAYS.— 

16 (1) IN GENERAL.—Paragraph (1) of section 

17 4042(b) is amended by adding ‘‘and’’ at the end of 

18 subparagraph (A), by striking ‘‘, and’’ at the end of 

19 subparagraph (B) and inserting a period, and by 

20 striking subparagraph (C). 

21 (2) CONFORMING AMENDMENT.—Paragraph (2) 

22 of section 4042(b) is amended by striking subpara23 graph (C). 

24 (c) EFFECTIVE DATE.—The amendments made by this 

25 section shall take effect on October 1, 2004. 
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1 PART II—AQUATIC EXCISE TAXES 

2 SEC. 5411. ELIMINATION OF AQUATIC RESOURCES TRUST 

3 FUND AND TRANSFORMATION OF SPORT FISH 

4 RESTORATION ACCOUNT. 

5 (a) SIMPLIFICATION OF FUNDING FOR BOAT SAFETY

6 ACCOUNT.— 

7 (1) IN GENERAL.—Section 9503(c)(3) (relating 

8 to transfers from Trust Fund for motorboat fuel 

9 taxes), as redesignated by section 5002 of this Act, is 

10 amended— 

11 (A) by striking ‘‘Fund—’’ and all that fol12 lows through ‘‘shall be transferred’’ in subpara13 graph (B) and inserting ‘‘Fund which is attrib14 utable to motorboat fuel taxes shall be trans15 ferred’’, and 

16 (B) by striking subparagraph (A), and 

17 (C) by redesignating subparagraphs (B) 

18 through (E) as subparagraphs (A) through (D), 

19 respectively. 

20 (2) CONFORMING AMENDMENTS.— 

21 (A) Section 9503(b)(4), as amended by sec22 tion 5102 of this Act, is amended— 

23 (i) by adding ‘‘or’’ at the end of sub24 paragraph (B), 
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1 (ii) by striking the comma at the end 

2 of subparagraph (C) and inserting a period, 

3 and 

4 (iii) by striking subparagraph (D). 

5 (B) Subparagraph (B) of section 9503(c)(3), 

6 as redesignated by section 5002 of this Act and 

7 subsection (a)(3), is amended— 

8 (i) by striking ‘‘ACCOUNT’’ in the head9 ing and inserting ‘‘TRUST FUND’’, 

10 (ii) by striking ‘‘or (B)’’ in clause (ii), 

11 and 

12 (iii) by striking ‘‘Account in the 

13 Aquatic Resources’’. 

14 (C) Subparagraph (C) of section 9503(c)(3), 

15 as redesignated by section 5002 of this Act and 

16 subsection (a)(3), is amended by striking ‘‘, but 

17 only to the extent such taxes are deposited into 

18 the Highway Trust Fund’’. 

19 (D) Paragraph (4) of section 9503(c), as re20 designated by section 5002 of this Act, is amend21 ed— 

22 (i) by striking ‘‘Account in the Aquatic 

23 Resources’’ in subparagraph (A), and 
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1 (ii) by striking ‘‘, but only to the ex2 tent such taxes are deposited into the High3 way Trust Fund’’ in subparagraph (B). 

4 (b) MERGING OF ACCOUNTS.— 

5 (1) IN GENERAL.—Subsection (a) of section 9504 

6 is amended to read as follows: 

7 ‘‘(a) CREATION OF TRUST FUND.—There is hereby es8 tablished in the Treasury of the United States a trust fund 

9 to be known as the ‘Sport Fish Restoration Trust Fund’. 

10 Such Trust Fund shall consist of such amounts as may be 

11 appropriated, credited, or paid to it as provided in this 

12 section, section 9503(c)(3), section 9503(c)(4), or section 

13 9602(b).’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Subsection (b) of section 9504 is amend16 ed— 

17 (i) by striking ‘‘ACCOUNT’’ in the head18 ing and inserting ‘‘TRUST FUND’’, 

19 (ii) by striking ‘‘Account’’ both places 

20 it appears in paragraphs (1) and (2) and 

21 inserting ‘‘Trust Fund’’, and 

22 (iii) by striking ‘‘ACCOUNT’’ both 

23 places it appears in the headings for para24 graphs (1) and (2) and inserting ‘‘TRUST

25 FUND’’. 
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1 (B) Subsection (d) of section 9504, as 

2 amended by section 5001 of this Act, is amend3 ed— 

4 (i) by striking ‘‘AQUATIC RESOURCES’’ 

5 in the heading, 

6 (ii) by striking ‘‘any Account in the 

7 Aquatic Resources’’ in paragraph (1) and 

8 inserting ‘‘the Sports Fish Restoration’’, 

9 and 

10 (iii) by striking ‘‘any such Account’’ 

11 in paragraph (1) and inserting ‘‘such Trust 

12 Fund’’. 

13 (C) Subsection (e) of section 9504, as 

14 amended by section 5002 of this Act, is amended 

15 by striking ‘‘Boat Safety Account and Sport 

16 Fish Restoration Account’’ and inserting ‘‘Sport 

17 Fish Restoration Trust Fund’’. 

18 (D) Section 9504 is amended by striking 

19 ‘‘AQUATIC RESOURCES’’ in the heading and 

20 inserting ‘‘SPORT FISH RESTORATION’’. 

21 (E) The item relating to section 9504 in the 

22 table of sections for subchapter A of chapter 98 

23 is amended by striking ‘‘aquatic resources’’ and 

24 inserting ‘‘sport fish restoration’’. 
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1 (c) PHASEOUT OF BOAT SAFETY ACCOUNT.—Sub2 section (c) of section 9504 is amended to read as follows: 

3 ‘‘(c) EXPENDITURES FROM BOAT SAFETY ACCOUNT.— 

4 Amounts remaining in the Boat Safety Account on October 

5 1, 2004, and amounts thereafter credited to the Account 

6 under section 9602(b), shall be available, as provided by 

7 appropriation Acts, for making expenditures before October 

8 1, 2009, to carry out the purposes of section 13106 of title 

9 46, United States Code (as in effect on the date of the enact10 ment of the Safe, Accountable, Flexible, and Efficient 

11 Transportation Equity Act of 2004).’’. 

12 (d) EFFECTIVE DATE.—The amendments made by this 

13 section shall take effect on October 1, 2004. 

14 SEC. 5412. EXEMPTION OF LED DEVICES FROM SONAR DE15 VICES SUITABLE FOR FINDING FISH. 

16 (a) IN GENERAL.—Section 4162(b) (defining sonar de17 vice suitable for finding fish) is amended by striking ‘‘or’’ 

18 at the end of paragraph (3), by striking the period at the 

19 end of paragraph (4) and inserting ‘‘, or’’, and by adding 

20 at the end the following new paragraph: 

21 ‘‘(5) an LED display.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by this 

23 section shall apply to articles sold by the manufacturer, 

24 producer, or importer after September 30, 2004. 
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1 SEC. 5413. REPEAL OF HARBOR MAINTENANCE TAX ON EX2 PORTS. 

3 (a) IN GENERAL.—Subsection (d) of section 4462 (re4 lating to definitions and special rules) is amended to read 

5 as follows: 

6 ‘‘(d) NONAPPLICABILITY OF TAX TO EXPORTS.—The 

7 tax imposed by section 4461(a) shall not apply to any port 

8 use with respect to any commercial cargo to be exported 

9 from the United States.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 4461(c)(1) is amended by adding 

12 ‘‘or’’ at the end of subparagraph (A), by striking sub13 paragraph (B), and by redesignating subparagraph 

14 (C) as subparagraph (B). 

15 (2) Section 4461(c)(2) is amended by striking 

16 ‘‘imposed—’’ and all that follows through ‘‘in any 

17 other case,’’ and inserting ‘‘imposed’’. 

18 (c) EFFECTIVE DATE.—The amendments made by this 

19 section shall take effect before, on, and after the date of the 

20 enactment of this Act. 

21 SEC. 5414. CAP ON EXCISE TAX ON CERTAIN FISHING 

22 EQUIPMENT. 

23 (a) IN GENERAL.—Paragraph (1) of section 4161(a) 

24 (relating to sport fishing equipment) is amended to read 

25 as follows: 

26 ‘‘(1) IMPOSITION OF TAX.— 
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1 ‘‘(A) IN GENERAL.—There is hereby im2 posed on the sale of any article of sport fishing 

3 equipment by the manufacturer, producer, or im4 porter a tax equal to 10 percent of the price for 

5 which so sold. 

6 ‘‘(B) LIMITATION ON TAX IMPOSED ON

7 FISHING RODS AND POLES.—The tax imposed by 

8 subparagraph (A) on any fishing rod or pole 

9 shall not exceed $10.’’. 

10 (b) CONFORMING AMENDMENTS.—Section 4161(a)(2) 

11 is amended by striking ‘‘paragraph (1)’’ both places it ap12 pears and inserting ‘‘paragraph (1)(A)’’. 

13 (c) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to articles sold by the manufacturer, 

15 producer, or importer after September 30, 2004. 

16 SEC. 5415. REDUCTION IN RATE OF TAX ON PORTABLE AER17 ATED BAIT CONTAINERS. 

18 (a) IN GENERAL.—Section 4161(a)(2)(A) (relating to 

19 3 percent rate of tax for electric outboard motors and sonar 

20 devices suitable for finding fish) is amended by inserting 

21 ‘‘or a portable aerated bait container’’ after ‘‘fish’’. 

22 (b) CONFORMING AMENDMENT.—The heading of sec23 tion 4161(a)(2) is amended by striking ‘‘ELECTRIC OUT24 BOARD MOTORS AND SONAR DEVICES SUITABLE FOR FIND-
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1 ING FISH’’ and inserting ‘‘CERTAIN SPORT FISHING EQUIP2 MENT’’. 

3 (c) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to articles sold by the manufacturer, 

5 producer, or importer after September 30, 2004. 

6 PART III—AERIAL EXCISE TAXES 

7 SEC. 5421. CLARIFICATION OF EXCISE TAX EXEMPTIONS 

8 FOR AGRICULTURAL AERIAL APPLICATORS 

9 AND EXEMPTION FOR FIXED-WING AIRCRAFT 

10 ENGAGED IN FORESTRY OPERATIONS. 

11 (a) NO WAIVER BY FARM OWNER, TENANT, OR OPER12 ATOR NECESSARY.—Subparagraph (B) of section 

13 6420(c)(4) (relating to certain farming use other than by 

14 owner, etc.) is amended to read as follows: 

15 ‘‘(B) if the person so using the gasoline is 

16 an aerial or other applicator of fertilizers or 

17 other substances and is the ultimate purchaser of 

18 the gasoline, then subparagraph (A) of this para19 graph shall not apply and the aerial or other ap20 plicator shall be treated as having used such gas21 oline on a farm for farming purposes.’’. 

22 (b) EXEMPTION INCLUDES FUEL USED BETWEEN AIR23 FIELD AND FARM.—Section 6420(c)(4), as amended by sub24 section (a), is amended by adding at the end the following 

25 new flush sentence: 
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1 ‘‘For purposes of this paragraph, in the case of an 

2 aerial applicator, gasoline shall be treated as used on 

3 a farm for farming purposes if the gasoline is used 

4 for the direct flight between the airfield and 1 or more 

5 farms.’’. 

6 (c) EXEMPTION FROM TAX ON AIR TRANSPORTATION

7 OF PERSONS FOR FORESTRY PURPOSES EXTENDED TO

8 FIXED-WING AIRCRAFT.—Subsection (f) of section 4261 (re9 lating to tax on air transportation of persons) is amended 

10 to read as follows: 

11 ‘‘(f) EXEMPTION FOR CERTAIN USES.—No tax shall be 

12 imposed under subsection (a) or (b) on air transportation— 

13 ‘‘(1) by helicopter for the purpose of transporting 

14 individuals, equipment, or supplies in the exploration 

15 for, or the development or removal of, hard minerals, 

16 oil, or gas, or 

17 ‘‘(2) by helicopter or by fixed-wing aircraft for 

18 the purpose of the planting, cultivation, cutting, or 

19 transportation of, or caring for, trees (including log20 ging operations), 

21 but only if the helicopter or fixed-wing aircraft does not 

22 take off from, or land at, a facility eligible for assistance 

23 under the Airport and Airway Development Act of 1970, 

24 or otherwise use services provided pursuant to section 44509 

25 or 44913(b) or subchapter I of chapter 471 of title 49, 
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1 United States Code, during such use. In the case of heli2 copter transportation described in paragraph (1), this sub3 section shall be applied by treating each flight segment as 

4 a distinct flight.’’. 

5 (d) EFFECTIVE DATE.—The amendments made by this 

6 section shall apply to fuel use or air transportation after 

7 the date of the enactment of this Act. 

8 SEC. 5422. MODIFICATION OF RURAL AIRPORT DEFINITION. 

9 (a) IN GENERAL.—Section 4261(e)(1)(B) (defining 

10 rural airport) is amended— 

11 (1) by inserting ‘‘(in the case of any airport de12 scribed in clause (ii)(III), on flight segments of at 

13 least 100 miles)’’ after ‘‘by air’’ in clause (i), and 

14 (2) by striking the period at the end of subclause 

15 (II) of clause (ii) and inserting ‘‘, or’’, and by adding 

16 at the end of clause (ii) the following new subclause: 

17 ‘‘(III) is not connected by paved 

18 roads to another airport.’’. 

19 (b) EFFECTIVE DATE.—The amendments made by this 

20 section shall take effect on April 1, 2004. 

21 SEC. 5423. EXEMPTION FROM TICKET TAXES FOR TRANS22 PORTATION PROVIDED BY SEAPLANES. 

23 (a) IN GENERAL.—Section 4261 (relating to imposi24 tion of tax) is amended by redesignating subsection (i) as 
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1 subsection (j) and by inserting after subsection (h) the fol2 lowing new subsection: 

3 ‘‘(i) EXEMPTION FOR SEAPLANES.—No tax shall be 

4 imposed by this section or section 4271 on any air trans5 portation by a seaplane with respect to any segment con6 sisting of a takeoff from, and a landing on, water, but only 

7 if the places at which such takeoff and landing occur have 

8 not received and are not receiving financial assistance from 

9 the Airport and Airways Trust Fund.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to transportation beginning after March 

12 31, 2004. 

13 SEC. 5424. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM 

14 TAXES ON AIR TRANSPORTATION. 

15 (a) IN GENERAL.—Section 4281 (relating to small air16 craft on nonestablished lines) is amended by adding at the 

17 end the following new sentence: ‘‘For purposes of this sec18 tion, an aircraft shall not be considered as operated on an 

19 established line if such aircraft is operated on a flight the 

20 sole purpose of which is sightseeing.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply with respect to transportation beginning 

23 on or after the date of the enactment of this Act, but shall 

24 not apply to any amount paid before such date for such 

25 transportation. 
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1 PART IV—ALCOHOLIC BEVERAGE EXCISE TAXES 

2 SEC. 5431. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON 

3 PRODUCERS AND MARKETERS OF ALCOHOLIC 

4 BEVERAGES. 

5 (a) REPEAL OF OCCUPATIONAL TAXES.— 

6 (1) IN GENERAL.—The following provisions of 

7 part II of subchapter A of chapter 51 (relating to oc8 cupational taxes) are hereby repealed: 

9 (A) Subpart A (relating to proprietors of 

10 distilled spirits plants, bonded wine cellars, etc.). 

11 (B) Subpart B (relating to brewer). 

12 (C) Subpart D (relating to wholesale deal13 ers) (other than sections 5114 and 5116). 

14 (D) Subpart E (relating to retail dealers) 

15 (other than section 5124). 

16 (E) Subpart G (relating to general provi17 sions) (other than sections 5142, 5143, 5145, and 

18 5146). 

19 (2) NONBEVERAGE DOMESTIC DRAWBACK.—Sec20 tion 5131 is amended by striking ‘‘, on payment of 

21 a special tax per annum,’’. 

22 (3) INDUSTRIAL USE OF DISTILLED SPIRITS.— 

23 Section 5276 is hereby repealed. 

24 (b) CONFORMING AMENDMENTS.— 
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1 (1)(A) The heading for part II of subchapter A 

2 of chapter 51 and the table of subparts for such part 

3 are amended to read as follows: 

4 ‘‘PART II—MISCELLANEOUS PROVISIONS 

‘‘Subpart A. Manufacturers of stills. 

‘‘Subpart B. Nonbeverage domestic drawback claimants. 

‘‘Subpart C. Recordkeeping by dealers. 

‘‘Subpart D. Other provisions.’’. 

5 (B) The table of parts for such subchapter A is 

6 amended by striking the item relating to part II and 

7 inserting the following new item: 

‘‘Part II. Miscellaneous provisions.’’. 

8 (2) Subpart C of part II of such subchapter (re9 lating to manufacturers of stills) is redesignated as 

10 subpart A. 

11 (3)(A) Subpart F of such part II (relating to 

12 nonbeverage domestic drawback claimants) is redesig13 nated as subpart B and sections 5131 through 5134 

14 are redesignated as sections 5111 through 5114, re15 spectively. 

16 (B) The table of sections for such subpart B, as 

17 so redesignated, is amended— 

18 (i) by redesignating the items relating to 

19 sections 5131 through 5134 as relating to sec20 tions 5111 through 5114, respectively, and 

21 (ii) by striking ‘‘and rate of tax’’ in the 

22 item relating to section 5111, as so redesignated. 
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1 (C) Section 5111, as redesignated by subpara2 graph (A), is amended— 

3 (i) by striking ‘‘AND RATE OF TAX’’ in 

4 the section heading, 

5 (ii) by striking the subsection heading for 

6 subsection (a), and 

7 (iii) by striking subsection (b). 

8 (4) Part II of subchapter A of chapter 51 is 

9 amended by adding after subpart B, as redesignated 

10 by paragraph (3), the following new subpart: 

11 ‘‘Subpart C—Recordkeeping by Dealers 

‘‘Sec. 5121. Recordkeeping by wholesale dealers. 

‘‘Sec. 5122. Recordkeeping by retail dealers. 

‘‘Sec. 5123. Preservation and inspection of records, and entry of premises for inspection.’’. 

12 (5)(A) Section 5114 (relating to records) is 

13 moved to subpart C of such part II and inserted after 

14 the table of sections for such subpart. 

15 (B) Section 5114 is amended— 

16 (i) by striking the section heading and in17 serting the following new heading: 

18 ‘‘SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.’’, 

19 and 

20 (ii) by redesignating subsection (c) as sub21 section (d) and by inserting after subsection (b) 

22 the following new subsection: 
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1 ‘‘(c) WHOLESALE DEALERS.—For purposes of this 

2 part— 

3 ‘‘(1) WHOLESALE DEALER IN LIQUORS.—The 

4 term ‘wholesale dealer in liquors’ means any dealer 

5 (other than a wholesale dealer in beer) who sells, or 

6 offers for sale, distilled spirits, wines, or beer, to an7 other dealer. 

8 ‘‘(2) WHOLESALE DEALER IN BEER.—The term 

9 ‘wholesale dealer in beer’ means any dealer who sells, 

10 or offers for sale, beer, but not distilled spirits or 

11 wines, to another dealer. 

12 ‘‘(3) DEALER.—The term ‘dealer’ means any 

13 person who sells, or offers for sale, any distilled spir14 its, wines, or beer. 

15 ‘‘(4) PRESUMPTION IN CASE OF SALE OF 20 WINE

16 GALLONS OR MORE.—The sale, or offer for sale, of dis17 tilled spirits, wines, or beer, in quantities of 20 wine 

18 gallons or more to the same person at the same time, 

19 shall be presumptive evidence that the person making 

20 such sale, or offer for sale, is engaged in or carrying 

21 on the business of a wholesale dealer in liquors or a 

22 wholesale dealer in beer, as the case may be. Such 

23 presumption may be overcome by evidence satisfac24 torily showing that such sale, or offer for sale, was 

25 made to a person other than a dealer.’’. 
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1 (C) Paragraph (3) of section 5121(d), as so re2 designated, is amended by striking ‘‘section 5146’’ 

3 and inserting ‘‘section 5123’’. 

4 (6)(A) Section 5124 (relating to records) is 

5 moved to subpart C of part II of subchapter A of 

6 chapter 51 and inserted after section 5121. 

7 (B) Section 5124 is amended— 

8 (i) by striking the section heading and in9 serting the following new heading: 

10 ‘‘SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.’’, 

11 (ii) by striking ‘‘section 5146’’ in subsection 

12 (c) and inserting ‘‘section 5123’’, and 

13 (iii) by redesignating subsection (c) as sub14 section (d) and inserting after subsection (b) the 

15 following new subsection: 

16 ‘‘(c) RETAIL DEALERS.—For purposes of this sec17 tion— 

18 ‘‘(1) RETAIL DEALER IN LIQUORS.—The term 

19 ‘retail dealer in liquors’ means any dealer (other than 

20 a retail dealer in beer or a limited retail dealer) who 

21 sells, or offers for sale, distilled spirits, wines, or beer, 

22 to any person other than a dealer. 

23 ‘‘(2) RETAIL DEALER IN BEER.—The term ‘retail 

24 dealer in beer’ means any dealer (other than a lim25 ited retail dealer) who sells, or offers for sale, beer, but 
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1 not distilled spirits or wines, to any person other 

2 than a dealer. 

3 ‘‘(3) LIMITED RETAIL DEALER.—The term ‘lim4 ited retail dealer’ means any fraternal, civic, church, 

5 labor, charitable, benevolent, or ex-servicemen’s orga6 nization making sales of distilled spirits, wine or beer 

7 on the occasion of any kind of entertainment, dance, 

8 picnic, bazaar, or festival held by it, or any person 

9 making sales of distilled spirits, wine or beer to the 

10 members, guests, or patrons of bona fide fairs, re11 unions, picnics, carnivals, or other similar outings, if 

12 such organization or person is not otherwise engaged 

13 in business as a dealer. 

14 ‘‘(4) DEALER.—The term ‘dealer’ has the mean15 ing given such term by section 5121(c)(3).’’. 

16 (7) Section 5146 is moved to subpart C of part 

17 II of subchapter A of chapter 51, inserted after section 

18 5122, and redesignated as section 5123. 

19 (8) Part II of subchapter A of chapter 51 is 

20 amended by inserting after subpart C the following 

21 new subpart: 

22 ‘‘Subpart D—Other Provisions 

‘‘Sec. 5131. Packaging distilled spirits for industrial uses. 

‘‘Sec. 5132. Prohibited purchases by dealers.’’. 

23 (9) Section 5116 is moved to subpart D of part 

24 II of subchapter A of chapter 51, inserted after the 
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1 table of sections, redesignated as section 5131, and 

2 amended by inserting ‘‘(as defined in section 

3 5121(c))’’ after ‘‘dealer’’ in subsection (a). 

4 (10) Subpart D of part II of subchapter A of 

5 chapter 51 is amended by adding at the end thereof 

6 the following new section: 

7 ‘‘SEC. 5132. PROHIBITED PURCHASES BY DEALERS. 

8 ‘‘(a) IN GENERAL.—Except as provided in regulations 

9 prescribed by the Secretary, it shall be unlawful for a dealer 

10 to purchase distilled spirits for resale from any person other 

11 than a wholesale dealer in liquors who is required to keep 

12 the records prescribed by section 5121. 

13 ‘‘(b) LIMITED RETAIL DEALERS.—A limited retail 

14 dealer may lawfully purchase distilled spirits for resale 

15 from a retail dealer in liquors. 

16 ‘‘(c) PENALTY AND FORFEITURE.— 

‘‘For penalty and forfeiture provisions applicable 

to violations of subsection (a), see sections 5687 and 

7302.’’. 

17 (11) Subsection (b) of section 5002 is amended— 

18 (A) by striking ‘‘section 5112(a)’’ and in19 serting ‘‘section 5121(c)(3)’’, 

20 (B) by striking ‘‘section 5112’’ and insert21 ing ‘‘section 5121(c)’’, 

22 (C) by striking ‘‘section 5122’’ and insert23 ing ‘‘section 5122(c)’’. 
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1 (12) Subparagraph (A) of section 5010(c)(2) is 

2 amended by striking ‘‘section 5134’’ and inserting 

3 ‘‘section 5114’’. 

4 (13) Subsection (d) of section 5052 is amended 

5 to read as follows: 

6 ‘‘(d) BREWER.—For purposes of this chapter, the term 

7 ‘brewer’ means any person who brews beer or produces beer 

8 for sale. Such term shall not include any person who pro9 duces only beer exempt from tax under section 5053(e).’’. 

10 (14) The text of section 5182 is amended to read 

11 as follows: 

12 ‘‘For provisions requiring recordkeeping by 

13 wholesale liquor dealers, see section 5121, and by re14 tail liquor dealers, see section 5122.’’. 

15 (15) Subsection (b) of section 5402 is amended 

16 by striking ‘‘section 5092’’ and inserting ‘‘section 

17 5052(d)’’. 

18 (16) Section 5671 is amended by striking ‘‘or 

19 5091’’. 

20 (17)(A) Part V of subchapter J of chapter 51 is 

21 hereby repealed. 

22 (B) The table of parts for such subchapter J is 

23 amended by striking the item relating to part V. 

24 (18)(A) Sections 5142, 5143, and 5145 are 

25 moved to subchapter D of chapter 52, inserted after 
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1 section 5731, redesignated as sections 5732, 5733, and 

2 5734, respectively, and amended by striking ‘‘this 

3 part’’ each place it appears and inserting ‘‘this sub4 chapter’’. 

5 (B) Section 5732, as redesignated by subpara6 graph (A), is amended by striking ‘‘(except the tax 

7 imposed by section 5131)’’ each place it appears. 

8 (C) Paragraph (2) of section 5733(c), as redesig9 nated by subparagraph (A), is amended by striking 

10 ‘‘liquors’’ both places it appears and inserting ‘‘to11 bacco products and cigarette papers and tubes’’. 

12 (D) The table of sections for subchapter D of 

13 chapter 52 is amended by adding at the end thereof 

14 the following: 

‘‘Sec. 5732. Payment of tax. 

‘‘Sec. 5733. Provisions relating to liability for occupational taxes. 

‘‘Sec. 5734. Application of State laws.’’. 

15 (E) Section 5731 is amended by striking sub16 section (c) and by redesignating subsection (d) as sub17 section (c). 

18 (19) Subsection (c) of section 6071 is amended 

19 by striking ‘‘section 5142’’ and inserting ‘‘section 

20 5732’’. 

21 (20) Paragraph (1) of section 7652(g) is amend22 ed— 

23 (A) by striking ‘‘subpart F’’ and inserting 

24 ‘‘subpart B’’, and 
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1 (B) by striking ‘‘section 5131(a)’’ and in2 serting ‘‘section 5111’’. 

3 (c) EFFECTIVE DATE.—The amendments made by this 

4 section shall take effect on July 1, 2004, but shall not apply 

5 to taxes imposed for periods before such date. 

6 SEC. 5432. SUSPENSION OF LIMITATION ON RATE OF RUM 

7 EXCISE TAX COVER OVER TO PUERTO RICO 

8 AND VIRGIN ISLANDS. 

9 (a) IN GENERAL.—Section 7652(f)(1) (relating to lim10 itation on cover over of tax on distilled spirits) is amended 

11 by striking ‘‘January 1, 2004’’ and inserting ‘‘October 1, 

12 2004, and $13.50 in the case of distilled spirits brought into 

13 the United States after September 30, 2004, and before Jan14 uary 1, 2006’’. 

15 (b) EFFECTIVE DATE.— 

16 (1) IN GENERAL.—The amendment made by sub17 section (a) shall apply to articles containing distilled 

18 spirits brought into the United States after December 

19 31, 2003. 

20 (2) SPECIAL RULE.— 

21 (A) IN GENERAL.—After September 30, 

22 2004, the treasury of Puerto Rico shall make a 

23 Conservation Trust Fund transfer within 30 

24 days from the date of each cover over payment 
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1 to such treasury under section 7652(e) of the In2 ternal Revenue Code of 1986. 

3 (B) CONSERVATION TRUST FUND TRANS4 FER.— 

5 (i) IN GENERAL.—For purposes of this 

6 paragraph, the term ‘‘Conservation Trust 

7 Fund transfer’’ means a transfer to the 

8 Puerto Rico Conservation Trust Fund of an 

9 amount equal to 50 cents per proof gallon 

10 of the taxes imposed under section 5001 or 

11 section 7652 of such Code on distilled spir12 its that are covered over to the treasury of 

13 Puerto Rico under section 7652(e) of such 

14 Code. 

15 (ii) TREATMENT OF TRANSFER.—Each 

16 Conservation Trust Fund transfer shall be 

17 treated as principal for an endowment, the 

18 income from which to be available for use 

19 by the Puerto Rico Conservation Trust 

20 Fund for the purposes for which the Trust 

21 Fund was established. 

22 (iii) RESULT OF NONTRANSFER.— 

23 (I) IN GENERAL.—Upon notifica24 tion by the Secretary of the Interior 

25 that a Conservation Trust Fund trans-
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1 fer has not been made by the treasury 

2 of Puerto Rico, the Secretary of the 

3 Treasury shall, except as provided in 

4 subclause (II), deduct and withhold 

5 from the next cover over payment to be 

6 made to the treasury of Puerto Rico 

7 under section 7652(e) of such Code an 

8 amount equal to the appropriate Con9 servation Trust Fund transfer and in10 terest thereon at the underpayment 

11 rate established under section 6621 of 

12 such Code as of the due date of such 

13 transfer. The Secretary of the Treasury 

14 shall transfer such amount deducted 

15 and withheld, and the interest thereon, 

16 directly to the Puerto Rico Conserva17 tion Trust Fund. 

18 (II) GOOD CAUSE EXCEPTION.—If 

19 the Secretary of the Interior finds, 

20 after consultation with the Governor of 

21 Puerto Rico, that the failure by the 

22 treasury of Puerto Rico to make a re23 quired transfer was for good cause, and 

24 notifies the Secretary of the Treasury 

25 of the finding of such good cause before 
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1 the due date of the next cover over pay2 ment following the notification of non3 transfer, then the Secretary of the 

4 Treasury shall not deduct the amount 

5 of such nontransfer from any cover 

6 over payment. 

7 (C) PUERTO RICO CONSERVATION TRUST

8 FUND.—For purposes of this paragraph, the term 

9 ‘‘Puerto Rico Conservation Trust Fund’’ means 

10 the fund established pursuant to a Memorandum 

11 of Understanding between the United States De12 partment of the Interior and the Commonwealth 

13 of Puerto Rico, dated December 24, 1968. 

14 PART V—SPORT EXCISE TAXES 

15 SEC. 5441. CUSTOM GUNSMITHS. 

16 (a) SMALL MANUFACTURERS EXEMPT FROM FIRE17 ARMS EXCISE TAX.—Section 4182 (relating to exemptions) 

18 is amended by redesignating subsection (c) as subsection (d) 

19 and by inserting after subsection (b) the following new sub20 section: 

21 ‘‘(c) SMALL MANUFACTURERS, ETC.— 

22 ‘‘(1) IN GENERAL.—The tax imposed by section 

23 4181 shall not apply to any article described in such 

24 section if manufactured, produced, or imported by a 
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1 person who manufactures, produces, and imports less 

2 than 50 of such articles during the calendar year. 

3 ‘‘(2) CONTROLLED GROUPS.—All persons treated 

4 as a single employer for purposes of subsection (a) or 

5 (b) of section 52 shall be treated as one person for 

6 purposes of paragraph (1).’’. 

7 (b) EFFECTIVE DATE.— 

8 (1) IN GENERAL.—The amendments made by 

9 this section shall apply to articles sold by the manu10 facturer, producer, or importer on or after the date 

11 which is the first day of the month beginning at least 

12 2 weeks after the date of the enactment of this Act. 

13 (2) NO INFERENCE.—Nothing in the amend14 ments made by this section shall be construed to cre15 ate any inference with respect to the proper tax treat16 ment of any sales before the effective date of such 

17 amendments. 

18 SEC. 5442. MODIFIED TAXATION OF IMPORTED ARCHERY 

19 PRODUCTS. 

20 (a) BOWS.—Paragraph (1) of section 4161(b) (relating 

21 to bows) is amended to read as follows: 

22 ‘‘(1) BOWS.— 

23 ‘‘(A) IN GENERAL.—There is hereby im24 posed on the sale by the manufacturer, producer, 

25 or importer of any bow which has a peak draw 
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1 weight of 30 pounds or more, a tax equal to 11 

2 percent of the price for which so sold. 

3 ‘‘(B) ARCHERY EQUIPMENT.—There is here4 by imposed on the sale by the manufacturer, pro5 ducer, or importer— 

6 ‘‘(i) of any part or accessory suitable 

7 for inclusion in or attachment to a bow de8 scribed in subparagraph (A), and 

9 ‘‘(ii) of any quiver or broadhead suit10 able for use with an arrow described in 

11 paragraph (2), 

12 a tax equal to 11 percent of the price for which 

13 so sold.’’. 

14 (b) ARROWS.—Subsection (b) of section 4161 (relating 

15 to bows and arrows, etc.) is amended by redesignating para16 graph (3) as paragraph (4) and inserting after paragraph 

17 (2) the following: 

18 ‘‘(3) ARROWS.— 

19 ‘‘(A) IN GENERAL.—There is hereby im20 posed on the sale by the manufacturer, producer, 

21 or importer of any arrow, a tax equal to 12 per22 cent of the price for which so sold. 

23 ‘‘(B) EXCEPTION.—In the case of any arrow 

24 of which the shaft or any other component has 
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1 been previously taxed under paragraph (1) or 

2 (2)— 

3 ‘‘(i) section 6416(b)(3) shall not apply, 

4 and 

5 ‘‘(ii) the tax imposed by subparagraph 

6 (A) shall be an amount equal to the excess 

7 (if any) of— 

8 ‘‘(I) the amount of tax imposed by 

9 this paragraph (determined without re10 gard to this subparagraph), over 

11 ‘‘(II) the amount of tax paid with 

12 respect to the tax imposed under para13 graph (1) or (2) on such shaft or com14 ponent. 

15 ‘‘(C) ARROW.—For purposes of this para16 graph, the term ‘arrow’ means any shaft de17 scribed in paragraph (2) to which additional 

18 components are attached.’’. 

19 (c) CONFORMING AMENDMENTS.—Section 4161(b)(2) 

20 is amended— 

21 (1) by inserting ‘‘(other than broadheads)’’ after 

22 ‘‘point’’, and 

23 (2) by striking ‘‘ARROWS.—’’ in the heading and 

24 inserting ‘‘ARROW COMPONENTS.—’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to articles sold by the manufacturer, 

3 producer, or importer after the date of the enactment of this 

4 Act. 

5 SEC. 5443. TREATMENT OF TRIBAL GOVERNMENTS FOR 

6 PURPOSES OF FEDERAL WAGERING EXCISE 

7 AND OCCUPATIONAL TAXES. 

8 (a) IN GENERAL.—Subsection (a) of section 7871 (re9 lating to Indian tribal governments treated as States for 

10 certain purposes) is amended by striking ‘‘and’’ at the end 

11 of paragraph (6), by striking the period at the end of para12 graph (7) and inserting ‘‘; and’’, and by adding at the end 

13 the following new paragraph: 

14 ‘‘(8) for purposes of chapter 35 (relating to taxes 

15 on wagering).’’. 

16 (b) EFFECTIVE DATE.—The amendments made by this 

17 section shall take effect on July 1, 2004, but shall not apply 

18 to taxes imposed for periods before such date. 
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1 PART VI—OTHER PROVISIONS 

2 SEC. 5451. INCOME TAX CREDIT FOR DISTILLED SPIRITS 

3 WHOLESALERS AND FOR DISTILLED SPIRITS 

4 IN CONTROL STATE BAILMENT WAREHOUSES 

5 FOR COSTS OF CARRYING FEDERAL EXCISE 

6 TAXES ON BOTTLED DISTILLED SPIRITS. 

7 (a) IN GENERAL.—Subpart A of part I of subchapter 

8 A of chapter 51 (relating to gallonage and occupational 

9 taxes) is amended by adding at the end the following new 

10 section: 

11 ‘‘SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF 

12 CARRYING EXCISE TAX. 

13 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

14 amount of the distilled spirits credit for any taxable year 

15 is the amount equal to the product of— 

16 ‘‘(1) in the case of— 

17 ‘‘(A) any eligible wholesaler— 

18 ‘‘(i) the number of cases of bottled dis19 tilled spirits— 

20 ‘‘(I) which were bottled in the 

21 United States, and 

22 ‘‘(II) which are purchased by such 

23 wholesaler during the taxable year di24 rectly from the bottler of such spirits, 

25 or 
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1 ‘‘(B) any person which is subject to section 

2 5005 and which is not an eligible wholesaler, the 

3 number of cases of bottled distilled spirits which 

4 are stored in a warehouse operated by, or on be5 half of, a State, or agency or political subdivi6 sion thereof, on which title has not passed on an 

7 unconditional sale basis, and 

8 ‘‘(2) the average tax-financing cost per case for 

9 the most recent calendar year ending before the begin10 ning of such taxable year. 

11 ‘‘(b) ELIGIBLE WHOLESALER.—For purposes of this 

12 section, the term ‘eligible wholesaler’ means any person 

13 which holds a permit under the Federal Alcohol Adminis14 tration Act as a wholesaler of distilled spirits which is not 

15 a State, or agency or political subdivision thereof. 

16 ‘‘(c) AVERAGE TAX-FINANCING COST.— 

17 ‘‘(1) IN GENERAL.—For purposes of this section, 

18 the average tax-financing cost per case for any cal19 endar year is the amount of interest which would ac20 crue at the deemed financing rate during a 60-day 

21 period on an amount equal to the deemed Federal ex22 cise tax per case. 

23 ‘‘(2) DEEMED FINANCING RATE.—For purposes 

24 of paragraph (1), the deemed financing rate for any 

25 calendar year is the average of the corporate overpay-
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1 ment rates under paragraph (1) of section 6621(a) 

2 (determined without regard to the last sentence of 

3 such paragraph) for calendar quarters of such year. 

4 ‘‘(3) DEEMED FEDERAL EXCISE TAX PER

5 CASE.—For purposes of paragraph (1), the deemed 

6 Federal excise tax per case is $25.68. 

7 ‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.—For 

8 purposes of this section— 

9 ‘‘(1) CASE.—The term ‘case’ means 12 80-proof 

10 750 milliliter bottles. 

11 ‘‘(2) NUMBER OF CASES IN LOT.—The number of 

12 cases in any lot of distilled spirits shall be determined 

13 by dividing the number of liters in such lot by 9.’’. 

14 (b) CREDIT TREATED AS PART OF GENERAL BUSI15 NESS CREDIT.—Section 38(b) (relating to current year 

16 business credit), as amended by section 5103 of this Act, 

17 is amended by striking ‘‘plus’’ at the end of paragraph (15), 

18 by striking the period at the end of paragraph (16) and 

19 inserting ‘‘, plus’’, and by adding at the end the following 

20 new paragraph: 

21 ‘‘(17) the distilled spirits credit determined 

22 under section 5011(a).’’. 

23 (c) CONFORMING AMENDMENTS.— 
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1 (1) Section 39(d), as amended by section 5103 of 

2 this Act, is amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(12) NO CARRYBACK OF SECTION 5011 CREDIT

5 BEFORE EFFECTIVE DATE.—No portion of the unused 

6 business credit for any taxable year which is attrib7 utable to the credit determined under section 5011(a) 

8 may be carried back to a taxable year beginning be9 fore the date of the enactment of section 5011.’’. 

10 (2) The table of sections for subpart A of part I 

11 of subchapter A of chapter 51 is amended by adding 

12 at the end the following new item: 

‘‘Sec. 5011. Income tax credit for average cost of carrying excise tax.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to taxable years beginning after the date 

15 of the enactment of this Act. 

16 SEC. 5452. CREDIT FOR TAXPAYERS OWNING COMMERCIAL 

17 POWER TAKEOFF VEHICLES. 

18 (a) IN GENERAL.—Subpart D of part IV of subchapter 

19 A of chapter 1 (relating to business-related credits) is 

20 amended by adding at the end the following new section: 

21 ‘‘SEC. 45G. COMMERCIAL POWER TAKEOFF VEHICLES CRED22 IT. 

23 ‘‘(a) GENERAL RULE.—For purposes of section 38, the 

24 amount of the commercial power takeoff vehicles credit de25 termined under this section for the taxable year is $250 for 
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1 each qualified commercial power takeoff vehicle owned by 

2 the taxpayer as of the close of the calendar year in which 

3 or with which the taxable year of the taxpayer ends. 

4 ‘‘(b) DEFINITIONS.—For purposes of this section— 

5 ‘‘(1) QUALIFIED COMMERCIAL POWER TAKEOFF

6 VEHICLE.—The term ‘qualified commercial power 

7 takeoff vehicle’ means any highway vehicle described 

8 in paragraph (2) which is propelled by any fuel sub9 ject to tax under section 4041 or 4081 if such vehicle 

10 is used in a trade or business or for the production 

11 of income (and is licensed and insured for such use). 

12 ‘‘(2) HIGHWAY VEHICLE DESCRIBED.—A high13 way vehicle is described in this paragraph if such ve14 hicle is— 

15 ‘‘(A) designed to engage in the daily collec16 tion of refuse or recyclables from homes or busi17 nesses and is equipped with a mechanism under 

18 which the vehicle’s propulsion engine provides 

19 the power to operate a load compactor, or 

20 ‘‘(B) designed to deliver ready mixed con21 crete on a daily basis and is equipped with a 

22 mechanism under which the vehicle’s propulsion 

23 engine provides the power to operate a mixer 

24 drum to agitate and mix the product en route to 

25 the delivery site. 
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1 ‘‘(c) EXCEPTION FOR VEHICLES USED BY GOVERN2 MENTS, ETC.—No credit shall be allowed under this section 

3 for any vehicle owned by any person at the close of a cal4 endar year if such vehicle is used at any time during such 

5 year by— 

6 ‘‘(1) the United States or an agency or instru7 mentality thereof, a State, a political subdivision of 

8 a State, or an agency or instrumentality of one or 

9 more States or political subdivisions, or 

10 ‘‘(2) an organization exempt from tax under sec11 tion 501(a). 

12 ‘‘(d) TERMINATION.—This section shall not apply with 

13 respect to any calendar year after 2006.’’. 

14 (b) CREDIT TREATED AS PART OF GENERAL BUSI15 NESS CREDIT.—Section 38(b) (relating to current year 

16 business credit), as amended by section 5451 of this Act, 

17 is amended by striking ‘‘plus’’ at the end of paragraph (16), 

18 by striking the period at the end of paragraph (17) and 

19 inserting ‘‘, plus’’, and by adding at the end the following 

20 new paragraph: 

21 ‘‘(18) the commercial power takeoff vehicles cred22 it under section 45G(a).’’. 

23 (c) CONFORMING AMENDMENTS.— 
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1 (1) Section 39(d), as amended by section 5451 of 

2 this Act, is amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(13) NO CARRYBACK OF SECTION 45G CREDIT

5 BEFORE EFFECTIVE DATE.—No portion of the unused 

6 business credit for any taxable year which is attrib7 utable to the credit determined under section 45G(a) 

8 may be carried back to a taxable year beginning on 

9 or before the date of the enactment of section 45G.’’. 

10 (2) The table of sections for subpart D of part 

11 IV of subchapter A of chapter 1 is amended by adding 

12 at the end the following new item: 

‘‘Sec. 45G. Commercial power takeoff vehicles credit.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to taxable years beginning after the date 

15 of the enactment of this Act. 

16 SEC. 5453. CREDIT FOR AUXILIARY POWER UNITS IN17 STALLED ON DIESEL-POWERED TRUCKS. 

18 (a) IN GENERAL.—Subpart D of part IV of subchapter 

19 A of chapter 1 (relating to business-related credits), as 

20 amended by section 5452 of this Act, is amended by adding 

21 at the end the following new section: 

22 ‘‘SEC. 45H. AUXILIARY POWER UNIT CREDIT. 

23 ‘‘(a) GENERAL RULE.—For purposes of section 38, the 

24 amount of the auxiliary power unit credit determined 
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1 under this section for the taxable year is $250 for each 

2 qualified auxiliary power unit— 

3 ‘‘(1) purchased by the taxpayer, and 

4 ‘‘(2) installed or caused to be installed by the 

5 taxpayer on a qualified heavy-duty highway vehicle 

6 during such taxable year. 

7 ‘‘(b) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) QUALIFIED AUXILIARY POWER UNIT.—The 

9 term ‘qualified auxiliary power unit’ means any inte10 grated system which— 

11 ‘‘(A) provides heat, air conditioning, engine 

12 warming, and electricity to the factory installed 

13 components on a qualified heavy-duty highway 

14 vehicle as if the main drive engine of such vehi15 cle was in operation, 

16 ‘‘(B) is employed to reduce long-term idling 

17 of the diesel engine on such a vehicle, and 

18 ‘‘(C) is certified by the Environmental Pro19 tection Agency as meeting emission standards in 

20 regulations in effect on the date of the enactment 

21 of this section. 

22 ‘‘(2) QUALIFIED HEAVY-DUTY HIGHWAY VEHI23 CLE.—The term ‘qualified heavy-duty highway vehi24 cle’ means any highway vehicle weighing more than 

25 12,500 pounds and powered by a diesel engine. 
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1 ‘‘(c) TERMINATION.—This section shall not apply with 

2 respect to any installation occurring after December 31, 

3 2006.’’. 

4 (b) CREDIT TREATED AS PART OF GENERAL BUSI5 NESS CREDIT.—Section 38(b) (relating to current year 

6 business credit), as amended by section 5452 of this Act, 

7 is amended by striking ‘‘plus’’ at the end of paragraph (17), 

8 by striking the period at the end of paragraph (18) and 

9 inserting ‘‘, plus’’, and by adding at the end the following 

10 new paragraph: 

11 ‘‘(19) the auxiliary power unit credit under sec12 tion 45H(a).’’. 

13 (c) CONFORMING AMENDMENTS.— 

14 (1) Section 39(d), as amended by section 5452 of 

15 this Act, is amended by adding at the end the fol16 lowing new paragraph: 

17 ‘‘(14) NO CARRYBACK OF SECTION 45H CREDIT

18 BEFORE EFFECTIVE DATE.—No portion of the unused 

19 business credit for any taxable year which is attrib20 utable to the credit determined under section 45H(a) 

21 may be carried back to a taxable year beginning on 

22 or before the date of the enactment of section 45H.’’. 

23 (2) The table of sections for subpart D of part 

24 IV of subchapter A of chapter 1, as amended by sec-
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1 tion 5452 of this Act, is amended by adding at the 

2 end the following new item: 

‘‘Sec. 45H. Auxiliary power unit credit.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to auxiliary power units purchased and 

5 installed for taxable years beginning after the date of the 

6 enactment of this Act. 

7 Subtitle F—Miscellaneous 

8 Provisions 

9 SEC. 5501. MOTOR FUEL TAX ENFORCEMENT ADVISORY 

10 COMMISSION. 

11 (a) ESTABLISHMENT.—There is established a Motor 

12 Fuel Tax Enforcement Advisory Commission (in this sec13 tion referred to as the ‘‘Commission’’). 

14 (b) FUNCTION.—The Commission shall— 

15 (1) review motor fuel revenue collections, histor16 ical and current; 

17 (2) review the progress of investigations; 

18 (3) develop and review legislative proposals with 

19 respect to motor fuel taxes; 

20 (4) monitor the progress of administrative regu21 lation projects relating to motor fuel taxes; 

22 (5) review the results of Federal and State agen23 cy cooperative efforts regarding motor fuel taxes; 

24 (6) review the results of Federal interagency co25 operative efforts regarding motor fuel taxes; and 
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1 (7) evaluate and make recommendations regard2 ing— 

3 (A) the effectiveness of existing Federal en4 forcement programs regarding motor fuel taxes, 

5 (B) enforcement personnel allocation, and 

6 (C) proposals for regulatory projects, legis7 lation, and funding. 

8 (c) MEMBERSHIP.— 

9 (1) APPOINTMENT.—The Commission shall be 

10 composed of the following representatives appointed 

11 by the Chairmen and the Ranking Members of the 

12 Committee on Finance of the Senate and the Com13 mittee on Ways and Means of the House of Represent14 atives: 

15 (A) At least 1 representative from each of 

16 the following Federal entities: the Department of 

17 Homeland Security, the Department of Trans18 portation—Office of Inspector General, the Fed19 eral Highway Administration, the Department 

20 of Defense, and the Department of Justice. 

21 (B) At least 1 representative from the Fed22 eration of State Tax Administrators. 

23 (C) At least 1 representative from any State 

24 department of transportation. 
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1 (D) 2 representatives from the highway con2 struction industry. 

3 (E) 5 representatives from industries relat4 ing to fuel distribution — refiners (2 representa5 tives), distributors (1 representative), pipelines 

6 (1 representative), and terminal operators (2 

7 representatives). 

8 (F) 1 representative from the retail fuel in9 dustry. 

10 (G) 2 representatives from the staff of the 

11 Committee on Finance of the Senate and 2 rep12 resentatives from the staff of the Committee on 

13 Ways and Means of the House of Representa14 tives. 

15 (2) TERMS.—Members shall be appointed for the 

16 life of the Commission. 

17 (3) VACANCIES.—A vacancy in the Commission 

18 shall be filled in the manner in which the original 

19 appointment was made. 

20 (4) TRAVEL EXPENSES.—Members shall serve 

21 without pay but shall receive travel expenses, includ22 ing per diem in lieu of subsistence, in accordance 

23 with sections 5702 and 5703 of title 5, United States 

24 Code. 
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1 (5) CHAIRMAN.—The Chairman of the Commis2 sion shall be elected by the members. 

3 (d) FUNDING.—Such sums as are necessary shall be 

4 available from the Highway Trust fund for the expenses of 

5 the Commission. 

6 (e) CONSULTATION.—Upon request of the Commission, 

7 representatives of the Department of the Treasury and the 

8 Internal Revenue Service shall be available for consultation 

9 to assist the Commission in carrying out its duties under 

10 this section. 

11 (f) OBTAINING DATA.—The Commission may secure 

12 directly from any department or agency of the United 

13 States, information (other than information required by 

14 any law to be kept confidential by such department or agen15 cy) necessary for the Commission to carry out its duties 

16 under this section. Upon request of the Commission, the 

17 head of that department or agency shall furnish such non18 confidential information to the Commission. The Commis19 sion shall also gather evidence through such means as it 

20 may deem appropriate, including through holding hearings 

21 and soliciting comments by means of Federal Register no22 tices. 

23 (g) TERMINATION.—The Commission shall terminate 

24 after September 30, 2009. 
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1 SEC. 5502. NATIONAL SURFACE TRANSPORTATION INFRA2 STRUCTURE FINANCING COMMISSION. 

3 (a) ESTABLISHMENT.—There is established a National 

4 Surface Transportation Infrastructure Financing Commis5 sion (in this section referred to as the ‘‘Commission’’). The 

6 Commission shall hold its first meeting within 90 days of 

7 the appointment of the eighth individual to be named to 

8 the Commission. 

9 (b) FUNCTION.— 

10 (1) IN GENERAL.—The Commission shall— 

11 (A) make a thorough investigation and 

12 study of revenues flowing into the Highway 

13 Trust Fund under current law, including the in14 dividual components of the overall flow of such 

15 revenues; 

16 (B) consider whether the amount of such 

17 revenues is likely to increase, decline, or remain 

18 unchanged, absent changes in the law, particu19 larly by taking into account the impact of pos20 sible changes in public vehicular choice, fuel use, 

21 or travel alternatives that could be expected to 

22 reduce or increase revenues into the Highway 

23 Trust Fund; 

24 (C) consider alternative approaches to gen25 erating revenues for the Highway Trust Fund, 
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1 and the level of revenues that such alternatives 

2 would yield; 

3 (D) consider highway and transit needs and 

4 whether additional revenues into the Highway 

5 Trust Fund, or other Federal revenues dedicated 

6 to highway and transit infrastructure, would be 

7 required in order to meet such needs; and 

8 (E) study such other matters closely related 

9 to the subjects described in the preceding sub10 paragraphs as it may deem appropriate. 

11 (2) TIME FRAME OF INVESTIGATION AND

12 STUDY.—The time frame to be considered by the Com13 mission shall extend through the year 2015. 

14 (3) PREPARATION OF REPORT.—Based on such 

15 investigation and study, the Commission shall develop 

16 a final report, with recommendations and the bases 

17 for those recommendations, indicating policies that 

18 should be adopted, or not adopted, to achieve various 

19 levels of annual revenue for the Highway Trust Fund 

20 and to enable the Highway Trust Fund to receive rev21 enues sufficient to meet highway and transit needs. 

22 Such recommendations shall address, among other 

23 matters as the Commission may deem appropriate— 
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1 (A) what levels of revenue are required by 

2 the Federal Highway Trust Fund in order for it 

3 to meet needs to— 

4 (i) maintain, and 

5 (ii) improve the condition and per6 formance of the Nation’s highway and tran7 sit systems; 

8 (B) what levels of revenue are required by 

9 the Federal Highway Trust Fund in order to en10 sure that Federal levels of investment in high11 ways and transit do not decline in real terms; 

12 and 

13 (C) the extent, if any, to which the High14 way Trust Fund should be augmented by other 

15 mechanisms or funds as a Federal means of fi16 nancing highway and transit infrastructure in17 vestments. 

18 (c) MEMBERSHIP.— 

19 (1) APPOINTMENT.—The Commission shall be 

20 composed of 15 members, appointed as follows: 

21 (A) 7 members appointed by the Secretary 

22 of Transportation, in consultation with the Sec23 retary of the Treasury. 
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1 (B) 2 members appointed by the Chairman 

2 of the Committee on Ways and Means of the 

3 House of Representatives. 

4 (C) 2 members appointed by the Ranking 

5 Minority Member of the Committee on Ways and 

6 Means of the House of Representatives. 

7 (D) 2 members appointed by the Chairman 

8 of the Committee on Finance of the Senate. 

9 (E) 2 members appointed by the Ranking 

10 Minority Member of the Committee on Finance 

11 of the Senate. 

12 (2) QUALIFICATIONS.—Members appointed pur13 suant to paragraph (1) shall be appointed from 

14 among individuals knowledgeable in the fields of pub15 lic transportation finance or highway and transit 

16 programs, policy, and needs, and may include rep17 resentatives of interested parties, such as State and 

18 local governments or other public transportation au19 thorities or agencies, representatives of the transpor20 tation construction industry (including suppliers of 

21 technology, machinery and materials), transportation 

22 labor (including construction and providers), trans23 portation providers, the financial community, and 

24 users of highway and transit systems. 
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1 (3) TERMS.—Members shall be appointed for the 

2 life of the Commission. 

3 (4) VACANCIES.—A vacancy in the Commission 

4 shall be filled in the manner in which the original 

5 appointment was made. 

6 (5) TRAVEL EXPENSES.—Members shall serve 

7 without pay but shall receive travel expenses, includ8 ing per diem in lieu of subsistence, in accordance 

9 with sections 5702 and 5703 of title 5, United States 

10 Code. 

11 (6) CHAIRMAN.—The Chairman of the Commis12 sion shall be elected by the members. 

13 (d) STAFF.—The Commission may appoint and fix the 

14 pay of such personnel as it considers appropriate. 

15 (e) FUNDING.—Funding for the Commission shall be 

16 provided by the Secretary of the Treasury and by the Sec17 retary of Transportation, out of funds available to those 

18 agencies for administrative and policy functions. 

19 (f) STAFF OF FEDERAL AGENCIES.—Upon request of 

20 the Commission, the head of any department or agency of 

21 the United States may detail any of the personnel of that 

22 department or agency to the Commission to assist in car23 rying out its duties under this section. 

24 (g) OBTAINING DATA.—The Commission may secure 

25 directly from any department or agency of the United 
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1 States, information (other than information required by 

2 any law to be kept confidential by such department or agen3 cy) necessary for the Commission to carry out its duties 

4 under this section. Upon request of the Commission, the 

5 head of that department or agency shall furnish such non6 confidential information to the Commission. The Commis7 sion shall also gather evidence through such means as it 

8 may deem appropriate, including through holding hearings 

9 and soliciting comments by means of Federal Register no10 tices. 

11 (h) REPORT.—Not later than 2 years after the date 

12 of its first meeting, the Commission shall transmit its final 

13 report, including recommendations, to the Secretary of 

14 Transportation, the Secretary of the Treasury, and the 

15 Committee on Ways and Means of the House of Representa16 tives, the Committee on Finance of the Senate, the Com17 mittee on Transportation and Infrastructure of the House 

18 of Representatives, the Committee on Environment and 

19 Public Works of the Senate, and the Committee on Banking, 

20 Housing, and Urban Affairs of the Senate. 

21 (i) TERMINATION.—The Commission shall terminate 

22 on the 180th day following the date of transmittal of the 

23 report under subsection (h). All records and papers of the 

24 Commission shall thereupon be delivered to the Adminis-
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1 trator of General Services for deposit in the National Ar2 chives. 

3 SEC. 5503. TREASURY STUDY OF FUEL TAX COMPLIANCE 

4 AND INTERAGENCY COOPERATION. 

5 (a) IN GENERAL.—Not later than January 31, 2006, 

6 the Secretary of the Treasury shall submit to the Committee 

7 on Finance of the Senate and the Committee on Ways and 

8 Means of the House of Representatives a report regarding 

9 fuel tax enforcement which shall include the information 

10 and analysis specified in subsections (b) and (c) and any 

11 other information and recommendations the Secretary of 

12 the Treasury may deem appropriate. 

13 (b) AUDITS.—With respect to audits conducted by the 

14 Internal Revenue Service, the report required under sub15 section (a) shall include— 

16 (1) the number and geographic distribution of 

17 audits conducted annually, by fiscal year, between 

18 October 1, 2001, and September 30, 2005; 

19 (2) the total volume involved for each of the tax20 able fuels covered by such audits and a comparison 

21 to the annual production of such fuels; 

22 (3) the staff hours and number of personnel de23 voted to the audits per year; and 
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1 (4) the results of such audits by year, including 

2 total tax collected, total penalties collected, and num3 ber of referrals for criminal prosecution. 

4 (c) ENFORCEMENT ACTIVITIES.—With respect to en5 forcement activities, the report required under subsection 

6 (a) shall include— 

7 (1) the number and geographic distribution of 

8 criminal investigations and prosecutions annually, by 

9 fiscal year, between October 1, 2001, and September 

10 30, 2005, and the results of such investigations and 

11 prosecutions; 

12 (2) to the extent such investigations and prosecu13 tions involved other agencies, State or Federal, a 

14 breakdown by agency of the number of joint investiga15 tions involved; 

16 (3) an assessment of the effectiveness of joint ac17 tion and cooperation between the Department of the 

18 Treasury and other Federal and State agencies, in19 cluding a discussion of the ability and need to share 

20 information across agencies for both civil and crimi21 nal Federal tax enforcement and enforcement of State 

22 or Federal laws relating to fuels; 

23 (4) the staff hours and number of personnel de24 voted to criminal investigations and prosecutions per 

25 year; 
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1 (5) the staff hours and number of personnel de2 voted to administrative collection of fuel taxes; and 

3 (6) the results of administrative collection efforts 

4 annually, by fiscal year, between October 1, 2001, 

5 and September 30, 2005. 

6 SEC. 5504. EXPANSION OF HIGHWAY TRUST FUND EXPENDI7 TURE PURPOSES TO INCLUDE FUNDING FOR 

8 STUDIES OF SUPPLEMENTAL OR ALTER9 NATIVE FINANCING FOR THE HIGHWAY 

10 TRUST FUND. 

11 (a) IN GENERAL.—From amounts available in the 

12 Highway Trust Fund, there is authorized to be expended 

13 for 2 comprehensive studies of supplemental or alternative 

14 funding sources for the Highway Trust Fund— 

15 (1) $1,000,000 to the Western Transportation In16 stitute of the College of Engineering at Montana State 

17 University for the study and report described in sub18 section (b), and 

19 (2) $16,500,000 to the Public Policy Center of 

20 the University of Iowa for the study and report de21 scribed in subsection (c). 

22 (b) STUDY OF FUNDING MECHANISMS.—Not later than 

23 December 31, 2006, the Western Transportation Institute 

24 of the College of Engineering at Montana State University 

25 shall report to the Secretary of the Treasury and the Sec-
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1 retary of Transportation on a study of highway funding 

2 mechanisms of other industrialized nations, an examina3 tion of the viability of alternative funding proposals, in4 cluding congestion pricing, greater reliance on tolls, privat5 ization of facilities, and bonding for construction of added 

6 capacity, and an examination of increasing the rates of 

7 motor fuels taxes in effect on the date of the enactment of 

8 this Act, including the indexation of such rates. 

9 (c) STUDY ON FIELD TEST OF ON-BOARD COMPUTER

10 ASSESSMENT OF HIGHWAY USE TAXES.—Not later than 

11 December 31, 2011, the Public Policy Center of the Univer12 sity of Iowa shall direct, analyze, and report to the Sec13 retary of the Treasury and the Secretary of Transportation 

14 on a long-term field test of an approach to assessing high15 way use taxes based upon actual mileage driven by a spe16 cific vehicle on specific types of highways by use of an on17 board computer— 

18 (1) which is linked to satellites to calculate high19 way mileage traversed, 

20 (2) which computes the appropriate highway use 

21 tax for each of the Federal, State, and local govern22 ments as the vehicle makes use of the highways, and 

23 (3) the data from which is periodically 

24 downloaded by the vehicle owner to a collection center 

25 for an assessment of highway use taxes due in each 
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1 jurisdiction traversed.The components of the field test 

2 shall include 2 years for preparation, including selec3 tion of vendors and test participants, and 3-year test4 ing period. 

5 SEC. 5505. TREASURY STUDY OF HIGHWAY FUELS USED BY 

6 TRUCKS FOR NON-TRANSPORTATION PUR7 POSES. 

8 (a) STUDY.—The Secretary of the Treasury shall con9 duct a study regarding the use of highway motor fuel by 

10 trucks that is not used for the propulsion of the vehicle. As 

11 part of such study— 

12 (1) in the case of vehicles carrying equipment 

13 that is unrelated to the transportation function of the 

14 vehicle— 

15 (A) the Secretary of the Treasury, in con16 sultation with the Secretary of Transportation, 

17 and with public notice and comment, shall deter18 mine the average annual amount of tax paid fuel 

19 consumed per vehicle, by type of vehicle, used by 

20 the propulsion engine to provide the power to op21 erate the equipment attached to the highway ve22 hicle, and 

23 (B) the Secretary of the Treasury shall re24 view the technical and administrative feasibility 
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1 of exempting such nonpropulsive use of highway 

2 fuels for the highway motor fuels excise taxes, 

3 (2) in the case where non-transportation equip4 ment is run by a separate motor— 

5 (A) the Secretary of the Treasury shall de6 termine the annual average amount of fuel ex7 empted from tax in the use of such equipment by 

8 equipment type, and 

9 (B) the Secretary of the Treasury shall re10 view issues of administration and compliance re11 lated to the present-law exemption provided for 

12 such fuel use, and 

13 (3) the Secretary of the Treasury shall— 

14 (A) estimate the amount of taxable fuel con15 sumed by trucks and the emissions of various 

16 pollutants due to the long-term idling of diesel 

17 engines, and 

18 (B) determine the cost of reducing such 

19 long-term idling through the use of plug-ins at 

20 truck stops, auxiliary power units, or other tech21 nologies. 

22 (b) REPORT.—Not later than January 1, 2006, the 

23 Secretary of the Treasury shall report the findings of the 

24 study required under subsection (a) to the Committee on 
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1 Finance of the Senate and the Committee on Ways and 

2 Means of the House of Representatives. 

3 SEC. 5506. DELTA REGIONAL TRANSPORTATION PLAN. 

4 (a) STUDY.—The Delta Regional Authority shall con5 duct a study of the transportation assets and needs in the 

6 States of Alabama, Arkansas, Illinois, Kentucky, Lou7 isiana, Mississippi, Missouri, and Tennessee which com8 prise the Delta region. 

9 (b) REGIONAL STRATEGIC TRANSPORTATION PLAN.— 

10 Upon completion of the study required under subsection (a), 

11 the Delta Regional Authority shall establish a regional stra12 tegic transportation plan to achieve efficient transportation 

13 systems in the Delta region. In developing the regional stra14 tegic transportation plan, the Delta Regional Authority 

15 shall consult with local planning and development districts, 

16 local and regional governments, metropolitan planning or17 ganizations, State transportation entities, and Federal 

18 transportation agencies. 

19 (c) ELEMENTS OF STUDY AND PLAN.—The study and 

20 plan under this section shall include the following transpor21 tation modes and systems: transit, rail, highway, interstate, 

22 bridges, air, airports, waterways and ports. 

23 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to the Delta Regional Author-
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1 ity $1,000,000 to carry out the purposes of this section, to 

2 remain available until expended. 

3 SEC. 5507. TREATMENT OF EMPLOYER-PROVIDED TRANSIT 

4 AND VAN POOLING BENEFITS. 

5 (a) IN GENERAL.—Subparagraph (A) of section 

6 132(f)(2) (relating to limitation on exclusion) is amended 

7 by striking ‘‘$100’’ and inserting ‘‘$120’’. 

8 (b) INFLATION ADJUSTMENT CONFORMING AMEND9 MENTS.—The last sentence of section 132(f)(6)(A) (relating 

10 to inflation adjustment) is amended— 

11 (1) by striking ‘‘2002’’ and inserting ‘‘2005’’, 

12 and 

13 (2) by striking ‘‘2001’’ and inserting ‘‘2004’’. 

14 (c) EFFECTIVE DATE.—The amendments made by this 

15 section shall apply to taxable years beginning after Decem16 ber 31, 2004. 

17 SEC. 5508. STUDY OF INCENTIVES FOR PRODUCTION OF 

18 BIODIESEL. 

19 (a) STUDY.—The General Comptroller of the United 

20 States shall conduct a study related to biodiesel fuels and 

21 the tax credit for biodiesel fuels established under this Act. 

22 Such study shall include— 

23 (1) an assessment on whether such credit pro24 vides sufficient assistance to the producers of biodiesel 
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1 fuel to establish the fuel as a viable energy alternative 

2 in the current market place, 

3 (2) an assessment on how long such credit or 

4 similar subsidy would have to remain in effect before 

5 biodiesel fuel can compete in the market place without 

6 such assistance, 

7 (3) a cost-benefit analysis of such credit, com8 paring the cost of the credit in forgone revenue to the 

9 benefits of lower fuel costs for consumers, increased 

10 profitability for the biodiesel industry, increased farm 

11 income, reduced program outlays from the Depart12 ment of Agriculture, and the improved environmental 

13 conditions through the use of biodiesel fuel, and 

14 (4) an assessment on whether such credit results 

15 in any unintended consequences for unrelated indus16 tries, including the impact, if any, on the glycerin 

17 market. 

18 (b) REPORT.—Not later than 2 years after the date 

19 of the enactment of this Act, the Comptroller General of the 

20 United States shall report the findings of the study required 

21 under subsection (a) to the Committee on Finance of the 

22 Senate and the Committee on Ways and Means of the House 

23 of Representatives. 
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1 Subtitle G—Revenue Offsets 

2 PART I—LIMITATION ON EXPENSING CERTAIN 

3 PASSENGER AUTOMOBILES 

4 SEC. 5601. EXPANSION OF LIMITATION ON DEPRECIATION 

5 OF CERTAIN PASSENGER AUTOMOBILES. 

6 (a) IN GENERAL.—Section 179(b) (relating to limita7 tions) is amended by adding at the end the following new 

8 paragraph: 

9 ‘‘(6) LIMITATION ON COST TAKEN INTO ACCOUNT

10 FOR CERTAIN PASSENGER VEHICLES.— 

11 ‘‘(A) IN GENERAL.—The cost of any sport 

12 utility vehicle for any taxable year which may 

13 be taken into account under this section shall not 

14 exceed $25,000. 

15 ‘‘(B) SPORT UTILITY VEHICLE.—For pur16 poses of subparagraph (A)— 

17 ‘‘(i) IN GENERAL.—The term ‘sport 

18 utility vehicle’ means any 4-wheeled vehicle 

19 which— 

20 ‘‘(I) is manufactured primarily 

21 for use on public streets, roads, and 

22 highways, 

23 ‘‘(II) is not subject to section 

24 280F, and 
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1 ‘‘(III) is rated at not more than 

2 14,000 pounds gross vehicle weight. 

3 ‘‘(ii) CERTAIN VEHICLES EXCLUDED.— 

4 Such term does not include any vehicle 

5 which— 

6 ‘‘(I) does not have the primary 

7 load carrying device or container at8 tached, 

9 ‘‘(II) has a seating capacity of 

10 more than 12 individuals, 

11 ‘‘(III) is designed for more than 9 

12 individuals in seating rearward of the 

13 driver’s seat, 

14 ‘‘(IV) is equipped with an open 

15 cargo area, or a covered box not read16 ily accessible from the passenger com17 partment, of at least 72.0 inches in in18 terior length, or 

19 ‘‘(V) has an integral enclosure, 

20 fully enclosing the driver compartment 

21 and load carrying device, does not have 

22 seating rearward of the driver’s seat, 

23 and has no body section protruding 

24 more than 30 inches ahead of the lead25 ing edge of the windshield.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to property placed in service after Feb3 ruary 2, 2004. 

4 PART II—PROVISIONS DESIGNED TO CURTAIL 

5 TAX SHELTERS 

6 SEC. 5611. CLARIFICATION OF ECONOMIC SUBSTANCE DOC7 TRINE. 

8 (a) IN GENERAL.—Section 7701 is amended by redes9 ignating subsection (n) as subsection (o) and by inserting 

10 after subsection (m) the following new subsection: 

11 ‘‘(n) CLARIFICATION OF ECONOMIC SUBSTANCE DOC12 TRINE; ETC.— 

13 ‘‘(1) GENERAL RULES.— 

14 ‘‘(A) IN GENERAL.—In any case in which a 

15 court determines that the economic substance 

16 doctrine is relevant for purposes of this title to 

17 a transaction (or series of transactions), such 

18 transaction (or series of transactions) shall have 

19 economic substance only if the requirements of 

20 this paragraph are met. 

21 ‘‘(B) DEFINITION OF ECONOMIC SUB22 STANCE.—For purposes of subparagraph (A)— 

23 ‘‘(i) IN GENERAL.—A transaction has 

24 economic substance only if— 
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1 ‘‘(I) the transaction changes in a 

2 meaningful way (apart from Federal 

3 tax effects) the taxpayer’s economic po4 sition, and 

5 ‘‘(II) the taxpayer has a substan6 tial nontax purpose for entering into 

7 such transaction and the transaction is 

8 a reasonable means of accomplishing 

9 such purpose. 

10 In applying subclause (II), a purpose of 

11 achieving a financial accounting benefit 

12 shall not be taken into account in deter13 mining whether a transaction has a sub14 stantial nontax purpose if the origin of such 

15 financial accounting benefit is a reduction 

16 of income tax. 

17 ‘‘(ii) SPECIAL RULE WHERE TAXPAYER

18 RELIES ON PROFIT POTENTIAL.—A trans19 action shall not be treated as having eco20 nomic substance by reason of having a po21 tential for profit unless— 

22 ‘‘(I) the present value of the rea23 sonably expected pre-tax profit from 

24 the transaction is substantial in rela25 tion to the present value of the expected 
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1 net tax benefits that would be allowed 

2 if the transaction were respected, and 

3 ‘‘(II) the reasonably expected pre4 tax profit from the transaction exceeds 

5 a risk-free rate of return. 

6 ‘‘(C) TREATMENT OF FEES AND FOREIGN

7 TAXES.—Fees and other transaction expenses 

8 and foreign taxes shall be taken into account as 

9 expenses in determining pre-tax profit under 

10 subparagraph (B)(ii). 

11 ‘‘(2) SPECIAL RULES FOR TRANSACTIONS WITH

12 TAX-INDIFFERENT PARTIES.— 

13 ‘‘(A) SPECIAL RULES FOR FINANCING

14 TRANSACTIONS.—The form of a transaction 

15 which is in substance the borrowing of money or 

16 the acquisition of financial capital directly or 

17 indirectly from a tax-indifferent party shall not 

18 be respected if the present value of the deductions 

19 to be claimed with respect to the transaction is 

20 substantially in excess of the present value of the 

21 anticipated economic returns of the person lend22 ing the money or providing the financial capital. 

23 A public offering shall be treated as a borrowing, 

24 or an acquisition of financial capital, from a 

25 tax-indifferent party if it is reasonably expected 
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1 that at least 50 percent of the offering will be 

2 placed with tax-indifferent parties. 

3 ‘‘(B) ARTIFICIAL INCOME SHIFTING AND

4 BASIS ADJUSTMENTS.—The form of a trans5 action with a tax-indifferent party shall not be 

6 respected if— 

7 ‘‘(i) it results in an allocation of in8 come or gain to the tax-indifferent party in 

9 excess of such party’s economic income or 

10 gain, or 

11 ‘‘(ii) it results in a basis adjustment or 

12 shifting of basis on account of overstating 

13 the income or gain of the tax-indifferent 

14 party. 

15 ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 

16 purposes of this subsection— 

17 ‘‘(A) ECONOMIC SUBSTANCE DOCTRINE.— 

18 The term ‘economic substance doctrine’ means 

19 the common law doctrine under which tax bene20 fits under subtitle A with respect to a trans21 action are not allowable if the transaction does 

22 not have economic substance or lacks a business 

23 purpose. 

24 ‘‘(B) TAX-INDIFFERENT PARTY.—The term 

25 ‘tax-indifferent party’ means any person or enti-
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1 ty not subject to tax imposed by subtitle A. A 

2 person shall be treated as a tax-indifferent party 

3 with respect to a transaction if the items taken 

4 into account with respect to the transaction have 

5 no substantial impact on such person’s liability 

6 under subtitle A. 

7 ‘‘(C) EXCEPTION FOR PERSONAL TRANS8 ACTIONS OF INDIVIDUALS.—In the case of an in9 dividual, this subsection shall apply only to 

10 transactions entered into in connection with a 

11 trade or business or an activity engaged in for 

12 the production of income. 

13 ‘‘(D) TREATMENT OF LESSORS.—In apply14 ing paragraph (1)(B)(ii) to the lessor of tangible 

15 property subject to a lease— 

16 ‘‘(i) the expected net tax benefits with 

17 respect to the leased property shall not in18 clude the benefits of— 

19 ‘‘(I) depreciation, 

20 ‘‘(II) any tax credit, or 

21 ‘‘(III) any other deduction as pro22 vided in guidance by the Secretary, 

23 and 

24 ‘‘(ii) subclause (II) of paragraph 

25 (1)(B)(ii) shall be disregarded in deter-
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1 mining whether any of such benefits are al2 lowable. 

3 ‘‘(4) OTHER COMMON LAW DOCTRINES NOT AF4 FECTED.—Except as specifically provided in this sub5 section, the provisions of this subsection shall not be 

6 construed as altering or supplanting any other rule of 

7 law, and the requirements of this subsection shall be 

8 construed as being in addition to any such other rule 

9 of law. 

10 ‘‘(5) REGULATIONS.—The Secretary shall pre11 scribe such regulations as may be necessary or appro12 priate to carry out the purposes of this subsection. 

13 Such regulations may include exemptions from the 

14 application of this subsection.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to transactions entered into after Feb17 ruary 2, 2004. 

18 SEC. 5612. PENALTY FOR FAILING TO DISCLOSE REPORT19 ABLE TRANSACTION. 

20 (a) IN GENERAL.—Part I of subchapter B of chapter 

21 68 (relating to assessable penalties) is amended by inserting 

22 after section 6707 the following new section: 
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1 ‘‘SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORT2 ABLE TRANSACTION INFORMATION WITH RE3 TURN OR STATEMENT. 

4 ‘‘(a) IMPOSITION OF PENALTY.—Any person who fails 

5 to include on any return or statement any information with 

6 respect to a reportable transaction which is required under 

7 section 6011 to be included with such return or statement 

8 shall pay a penalty in the amount determined under sub9 section (b). 

10 ‘‘(b) AMOUNT OF PENALTY.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graphs (2) and (3), the amount of the penalty under 

13 subsection (a) shall be $50,000. 

14 ‘‘(2) LISTED TRANSACTION.—The amount of the 

15 penalty under subsection (a) with respect to a listed 

16 transaction shall be $100,000. 

17 ‘‘(3) INCREASE IN PENALTY FOR LARGE ENTITIES

18 AND HIGH NET WORTH INDIVIDUALS.— 

19 ‘‘(A) IN GENERAL.—In the case of a failure 

20 under subsection (a) by— 

21 ‘‘(i) a large entity, or 

22 ‘‘(ii) a high net worth individual, 

23 the penalty under paragraph (1) or (2) shall be 

24 twice the amount determined without regard to 

25 this paragraph. 
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1 ‘‘(B) LARGE ENTITY.—For purposes of sub2 paragraph (A), the term ‘large entity’ means, 

3 with respect to any taxable year, a person (other 

4 than a natural person) with gross receipts in ex5 cess of $10,000,000 for the taxable year in which 

6 the reportable transaction occurs or the pre7 ceding taxable year. Rules similar to the rules of 

8 paragraph (2) and subparagraphs (B), (C), and 

9 (D) of paragraph (3) of section 448(c) shall 

10 apply for purposes of this subparagraph. 

11 ‘‘(C) HIGH NET WORTH INDIVIDUAL.—For 

12 purposes of subparagraph (A), the term ‘high net 

13 worth individual’ means, with respect to a re14 portable transaction, a natural person whose net 

15 worth exceeds $2,000,000 immediately before the 

16 transaction. 

17 ‘‘(c) DEFINITIONS.—For purposes of this section— 

18 ‘‘(1) REPORTABLE TRANSACTION.—The term ‘re19 portable transaction’ means any transaction with re20 spect to which information is required to be included 

21 with a return or statement because, as determined 

22 under regulations prescribed under section 6011, such 

23 transaction is of a type which the Secretary deter24 mines as having a potential for tax avoidance or eva25 sion. 
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1 ‘‘(2) LISTED TRANSACTION.—Except as provided 

2 in regulations, the term ‘listed transaction’ means a 

3 reportable transaction which is the same as, or sub4 stantially similar to, a transaction specifically identi5 fied by the Secretary as a tax avoidance transaction 

6 for purposes of section 6011. 

7 ‘‘(d) AUTHORITY TO RESCIND PENALTY.— 

8 ‘‘(1) IN GENERAL.—The Commissioner of Inter9 nal Revenue may rescind all or any portion of any 

10 penalty imposed by this section with respect to any 

11 violation if— 

12 ‘‘(A) the violation is with respect to a re13 portable transaction other than a listed trans14 action, 

15 ‘‘(B) the person on whom the penalty is im16 posed has a history of complying with the re17 quirements of this title, 

18 ‘‘(C) it is shown that the violation is due to 

19 an unintentional mistake of fact; 

20 ‘‘(D) imposing the penalty would be against 

21 equity and good conscience, and 

22 ‘‘(E) rescinding the penalty would promote 

23 compliance with the requirements of this title 

24 and effective tax administration. 
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1 ‘‘(2) DISCRETION.—The exercise of authority 

2 under paragraph (1) shall be at the sole discretion of 

3 the Commissioner and may be delegated only to the 

4 head of the Office of Tax Shelter Analysis. The Com5 missioner, in the Commissioner’s sole discretion, may 

6 establish a procedure to determine if a penalty should 

7 be referred to the Commissioner or the head of such 

8 Office for a determination under paragraph (1). 

9 ‘‘(3) NO APPEAL.—Notwithstanding any other 

10 provision of law, any determination under this sub11 section may not be reviewed in any administrative or 

12 judicial proceeding. 

13 ‘‘(4) RECORDS.—If a penalty is rescinded under 

14 paragraph (1), the Commissioner shall place in the 

15 file in the Office of the Commissioner the opinion of 

16 the Commissioner or the head of the Office of Tax 

17 Shelter Analysis with respect to the determination, 

18 including— 

19 ‘‘(A) the facts and circumstances of the 

20 transaction, 

21 ‘‘(B) the reasons for the rescission, and 

22 ‘‘(C) the amount of the penalty rescinded. 

23 ‘‘(5) REPORT.—The Commissioner shall each 

24 year report to the Committee on Ways and Means of 
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1 the House of Representatives and the Committee on 

2 Finance of the Senate— 

3 ‘‘(A) a summary of the total number and 

4 aggregate amount of penalties imposed, and re5 scinded, under this section, and 

6 ‘‘(B) a description of each penalty rescinded 

7 under this subsection and the reasons therefor. 

8 ‘‘(e) PENALTY REPORTED TO SEC.—In the case of a 

9 person— 

10 ‘‘(1) which is required to file periodic reports 

11 under section 13 or 15(d) of the Securities Exchange 

12 Act of 1934 or is required to be consolidated with an13 other person for purposes of such reports, and 

14 ‘‘(2) which— 

15 ‘‘(A) is required to pay a penalty under 

16 this section with respect to a listed transaction, 

17 ‘‘(B) is required to pay a penalty under sec18 tion 6662A with respect to any reportable trans19 action at a rate prescribed under section 

20 6662A(c), or 

21 ‘‘(C) is required to pay a penalty under sec22 tion 6662B with respect to any noneconomic 

23 substance transaction, 

24 the requirement to pay such penalty shall be disclosed in 

25 such reports filed by such person for such periods as the 
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1 Secretary shall specify. Failure to make a disclosure in ac2 cordance with the preceding sentence shall be treated as a 

3 failure to which the penalty under subsection (b)(2) applies. 

4 ‘‘(f) COORDINATION WITH OTHER PENALTIES.—The 

5 penalty imposed by this section is in addition to any pen6 alty imposed under this title.’’. 

7 (b) CONFORMING AMENDMENT.—The table of sections 

8 for part I of subchapter B of chapter 68 is amended by 

9 inserting after the item relating to section 6707 the fol10 lowing: 

‘‘Sec. 6707A. Penalty for failure to include reportable transaction information 

with return or statement.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to returns and statements the due date 

13 for which is after the date of the enactment of this Act. 

14 SEC. 5613. ACCURACY-RELATED PENALTY FOR LISTED 

15 TRANSACTIONS AND OTHER REPORTABLE 

16 TRANSACTIONS HAVING A SIGNIFICANT TAX 

17 AVOIDANCE PURPOSE. 

18 (a) IN GENERAL.—Subchapter A of chapter 68 is 

19 amended by inserting after section 6662 the following new 

20 section: 
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1 ‘‘SEC. 6662A. IMPOSITION OF ACCURACY-RELATED PENALTY 

2 ON UNDERSTATEMENTS WITH RESPECT TO 

3 REPORTABLE TRANSACTIONS. 

4 ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer has a 

5 reportable transaction understatement for any taxable year, 

6 there shall be added to the tax an amount equal to 20 per7 cent of the amount of such understatement. 

8 ‘‘(b) REPORTABLE TRANSACTION UNDERSTATE9 MENT.—For purposes of this section— 

10 ‘‘(1) IN GENERAL.—The term ‘reportable trans11 action understatement’ means the sum of— 

12 ‘‘(A) the product of— 

13 ‘‘(i) the amount of the increase (if any) 

14 in taxable income which results from a dif15 ference between the proper tax treatment of 

16 an item to which this section applies and 

17 the taxpayer’s treatment of such item (as 

18 shown on the taxpayer’s return of tax), and 

19 ‘‘(ii) the highest rate of tax imposed by 

20 section 1 (section 11 in the case of a tax21 payer which is a corporation), and 

22 ‘‘(B) the amount of the decrease (if any) in 

23 the aggregate amount of credits determined 

24 under subtitle A which results from a difference 

25 between the taxpayer’s treatment of an item to 

26 which this section applies (as shown on the tax-
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1 payer’s return of tax) and the proper tax treat2 ment of such item. 

3 For purposes of subparagraph (A), any reduction of 

4 the excess of deductions allowed for the taxable year 

5 over gross income for such year, and any reduction 

6 in the amount of capital losses which would (without 

7 regard to section 1211) be allowed for such year, shall 

8 be treated as an increase in taxable income. 

9 ‘‘(2) ITEMS TO WHICH SECTION APPLIES.—This 

10 section shall apply to any item which is attributable 

11 to— 

12 ‘‘(A) any listed transaction, and 

13 ‘‘(B) any reportable transaction (other than 

14 a listed transaction) if a significant purpose of 

15 such transaction is the avoidance or evasion of 

16 Federal income tax. 

17 ‘‘(c) HIGHER PENALTY FOR NONDISCLOSED LISTED

18 AND OTHER AVOIDANCE TRANSACTIONS.— 

19 ‘‘(1) IN GENERAL.—Subsection (a) shall be ap20 plied by substituting ‘30 percent’ for ‘20 percent’ with 

21 respect to the portion of any reportable transaction 

22 understatement with respect to which the requirement 

23 of section 6664(d)(2)(A) is not met. 

24 ‘‘(2) RULES APPLICABLE TO ASSERTION AND

25 COMPROMISE OF PENALTY.— 
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1 ‘‘(A) IN GENERAL.—Only upon the ap2 proval by the Chief Counsel for the Internal Rev3 enue Service or the Chief Counsel’s delegate at 

4 the national office of the Internal Revenue Serv5 ice may a penalty to which paragraph (1) ap6 plies be included in a 1st letter of proposed defi7 ciency which allows the taxpayer an opportunity 

8 for administrative review in the Internal Rev9 enue Service Office of Appeals. If such a letter is 

10 provided to the taxpayer, only the Commissioner 

11 of Internal Revenue may compromise all or any 

12 portion of such penalty. 

13 ‘‘(B) APPLICABLE RULES.—The rules of 

14 paragraphs (2), (3), (4), and (5) of section 

15 6707A(d) shall apply for purposes of subpara16 graph (A). 

17 ‘‘(d) DEFINITIONS OF REPORTABLE AND LISTED

18 TRANSACTIONS.—For purposes of this section, the terms ‘re19 portable transaction’ and ‘listed transaction’ have the re20 spective meanings given to such terms by section 6707A(c). 

21 ‘‘(e) SPECIAL RULES.— 

22 ‘‘(1) COORDINATION WITH PENALTIES, ETC., ON

23 OTHER UNDERSTATEMENTS.—In the case of an under24 statement (as defined in section 6662(d)(2))— 
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1 ‘‘(A) the amount of such understatement 

2 (determined without regard to this paragraph) 

3 shall be increased by the aggregate amount of re4 portable transaction understatements and non5 economic substance transaction understatements 

6 for purposes of determining whether such under7 statement is a substantial understatement under 

8 section 6662(d)(1), and 

9 ‘‘(B) the addition to tax under section 

10 6662(a) shall apply only to the excess of the 

11 amount of the substantial understatement (if 

12 any) after the application of subparagraph (A) 

13 over the aggregate amount of reportable trans14 action understatements and noneconomic sub15 stance transaction understatements. 

16 ‘‘(2) COORDINATION WITH OTHER PENALTIES.— 

17 ‘‘(A) APPLICATION OF FRAUD PENALTY.— 

18 References to an underpayment in section 6663 

19 shall be treated as including references to a re20 portable transaction understatement and a non21 economic substance transaction understatement. 

22 ‘‘(B) NO DOUBLE PENALTY.—This section 

23 shall not apply to any portion of an understate24 ment on which a penalty is imposed under sec25 tion 6662B or 6663. 
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1 ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— 

2 Except as provided in regulations, in no event shall 

3 any tax treatment included with an amendment or 

4 supplement to a return of tax be taken into account 

5 in determining the amount of any reportable trans6 action understatement or noneconomic substance 

7 transaction understatement if the amendment or sup8 plement is filed after the earlier of the date the tax9 payer is first contacted by the Secretary regarding the 

10 examination of the return or such other date as is 

11 specified by the Secretary. 

12 ‘‘(4) NONECONOMIC SUBSTANCE TRANS13 ACTION UNDERSTATEMENT.—For purposes of this 

14 subsection, the term ‘noneconomic substance 

15 transaction understatement’ has the meaning 

16 given such term by section 6662B(c). 

17 ‘‘(5) CROSS REFERENCE.— 

‘‘For reporting of section 6662A(c) penalty to the 

Securities and Exchange Commission, see section 

6707A(e).’’. 

18 (b) DETERMINATION OF OTHER UNDERSTATE19 MENTS.—Subparagraph (A) of section 6662(d)(2) is 

20 amended by adding at the end the following flush sentence: 

21 ‘‘The excess under the preceding sentence shall be 

22 determined without regard to items to which sec23 tion 6662A applies and without regard to items 
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1 with respect to which a penalty is imposed by 

2 section 6662B.’’. 

3 (c) REASONABLE CAUSE EXCEPTION.— 

4 (1) IN GENERAL.—Section 6664 is amended by 

5 adding at the end the following new subsection: 

6 ‘‘(d) REASONABLE CAUSE EXCEPTION FOR REPORT7 ABLE TRANSACTION UNDERSTATEMENTS.— 

8 ‘‘(1) IN GENERAL.—No penalty shall be imposed 

9 under section 6662A with respect to any portion of a 

10 reportable transaction understatement if it is shown 

11 that there was a reasonable cause for such portion 

12 and that the taxpayer acted in good faith with respect 

13 to such portion. 

14 ‘‘(2) SPECIAL RULES.—Paragraph (1) shall not 

15 apply to any reportable transaction understatement 

16 unless— 

17 ‘‘(A) the relevant facts affecting the tax 

18 treatment of the item are adequately disclosed in 

19 accordance with the regulations prescribed under 

20 section 6011, 

21 ‘‘(B) there is or was substantial authority 

22 for such treatment, and 

23 ‘‘(C) the taxpayer reasonably believed that 

24 such treatment was more likely than not the 

25 proper treatment. 
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1 A taxpayer failing to adequately disclose in accord2 ance with section 6011 shall be treated as meeting the 

3 requirements of subparagraph (A) if the penalty for 

4 such failure was rescinded under section 6707A(d). 

5 ‘‘(3) RULES RELATING TO REASONABLE BE6 LIEF.—For purposes of paragraph (2)(C)— 

7 ‘‘(A) IN GENERAL.—A taxpayer shall be 

8 treated as having a reasonable belief with respect 

9 to the tax treatment of an item only if such be10 lief— 

11 ‘‘(i) is based on the facts and law that 

12 exist at the time the return of tax which in13 cludes such tax treatment is filed, and 

14 ‘‘(ii) relates solely to the taxpayer’s 

15 chances of success on the merits of such 

16 treatment and does not take into account 

17 the possibility that a return will not be au18 dited, such treatment will not be raised on 

19 audit, or such treatment will be resolved 

20 through settlement if it is raised. 

21 ‘‘(B) CERTAIN OPINIONS MAY NOT BE RE22 LIED UPON.— 

23 ‘‘(i) IN GENERAL.—An opinion of a 

24 tax advisor may not be relied upon to estab25 lish the reasonable belief of a taxpayer if— 
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1 ‘‘(I) the tax advisor is described 

2 in clause (ii), or 

3 ‘‘(II) the opinion is described in 

4 clause (iii). 

5 ‘‘(ii) DISQUALIFIED TAX ADVISORS.—A 

6 tax advisor is described in this clause if the 

7 tax advisor— 

8 ‘‘(I) is a material advisor (within 

9 the meaning of section 6111(b)(1)) who 

10 participates in the organization, man11 agement, promotion, or sale of the 

12 transaction or who is related (within 

13 the meaning of section 267(b) or 

14 707(b)(1)) to any person who so par15 ticipates, 

16 ‘‘(II) is compensated directly or 

17 indirectly by a material advisor with 

18 respect to the transaction, 

19 ‘‘(III) has a fee arrangement with 

20 respect to the transaction which is con21 tingent on all or part of the intended 

22 tax benefits from the transaction being 

23 sustained, or 

24 ‘‘(IV) as determined under regula25 tions prescribed by the Secretary, has a 
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1 disqualifying financial interest with 

2 respect to the transaction. 

3 ‘‘(iii) DISQUALIFIED OPINIONS.—For 

4 purposes of clause (i), an opinion is dis5 qualified if the opinion— 

6 ‘‘(I) is based on unreasonable fac7 tual or legal assumptions (including 

8 assumptions as to future events), 

9 ‘‘(II) unreasonably relies on rep10 resentations, statements, findings, or 

11 agreements of the taxpayer or any 

12 other person, 

13 ‘‘(III) does not identify and con14 sider all relevant facts, or 

15 ‘‘(IV) fails to meet any other re16 quirement as the Secretary may pre17 scribe.’’. 

18 (2) CONFORMING AMENDMENT.—The heading for 

19 subsection (c) of section 6664 is amended by inserting 

20 ‘‘FOR UNDERPAYMENTS’’ after ‘‘EXCEPTION’’. 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) Subparagraph (C) of section 461(i)(3) is 

23 amended by striking ‘‘section 6662(d)(2)(C)(iii)’’ and 

24 inserting ‘‘section 1274(b)(3)(C)’’. 
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1 (2) Paragraph (3) of section 1274(b) is amend2 ed— 

3 (A) by striking ‘‘(as defined in section 

4 6662(d)(2)(C)(iii))’’ in subparagraph (B)(i), and 

5 (B) by adding at the end the following new 

6 subparagraph: 

7 ‘‘(C) TAX SHELTER.—For purposes of sub8 paragraph (B), the term ‘tax shelter’ means— 

9 ‘‘(i) a partnership or other entity, 

10 ‘‘(ii) any investment plan or arrange11 ment, or 

12 ‘‘(iii) any other plan or arrangement, 

13 if a significant purpose of such partnership, en14 tity, plan, or arrangement is the avoidance or 

15 evasion of Federal income tax.’’. 

16 (3) Section 6662(d)(2) is amended by striking 

17 subparagraphs (C) and (D). 

18 (4) Section 6664(c)(1) is amended by striking 

19 ‘‘this part’’ and inserting ‘‘section 6662 or 6663’’. 

20 (5) Subsection (b) of section 7525 is amended by 

21 striking ‘‘section 6662(d)(2)(C)(iii)’’ and inserting 

22 ‘‘section 1274(b)(3)(C)’’. 

23 (6)(A) The heading for section 6662 is amended 

24 to read as follows: 
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HR 3550 EAS 

1 ‘‘SEC. 6662. IMPOSITION OF ACCURACY-RELATED PENALTY 

2 ON UNDERPAYMENTS.’’. 

3 (B) The table of sections for part II of sub4 chapter A of chapter 68 is amended by striking the 

5 item relating to section 6662 and inserting the fol6 lowing new items: 

‘‘Sec. 6662. Imposition of accuracy-related penalty on underpayments. 

‘‘Sec. 6662A. Imposition of accuracy-related penalty on understatements with respect to reportable transactions.’’. 

7 (e) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to taxable years ending after the date 

9 of the enactment of this Act. 

10 SEC. 5614. PENALTY FOR UNDERSTATEMENTS ATTRIB11 UTABLE TO TRANSACTIONS LACKING ECO12 NOMIC SUBSTANCE, ETC. 

13 (a) IN GENERAL.—Subchapter A of chapter 68 is 

14 amended by inserting after section 6662A the following new 

15 section: 

16 ‘‘SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIB17 UTABLE TO TRANSACTIONS LACKING ECO18 NOMIC SUBSTANCE, ETC. 

19 ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer has an 

20 noneconomic substance transaction understatement for any 

21 taxable year, there shall be added to the tax an amount 

22 equal to 40 percent of the amount of such understatement. 

23 ‘‘(b) REDUCTION OF PENALTY FOR DISCLOSED TRANS24 ACTIONS.—Subsection (a) shall be applied by substituting 
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1 ‘20 percent’ for ‘40 percent’ with respect to the portion of 

2 any noneconomic substance transaction understatement 

3 with respect to which the relevant facts affecting the tax 

4 treatment of the item are adequately disclosed in the return 

5 or a statement attached to the return. 

6 ‘‘(c) NONECONOMIC SUBSTANCE TRANSACTION UNDER7 STATEMENT.—For purposes of this section— 

8 ‘‘(1) IN GENERAL.—The term ‘noneconomic sub9 stance transaction understatement’ means any 

10 amount which would be an understatement under sec11 tion 6662A(b)(1) if section 6662A were applied by 

12 taking into account items attributable to noneconomic 

13 substance transactions rather than items to which sec14 tion 6662A would apply without regard to this para15 graph. 

16 ‘‘(2) NONECONOMIC SUBSTANCE TRANSACTION.— 

17 The term ‘noneconomic substance transaction’ means 

18 any transaction if— 

19 ‘‘(A) there is a lack of economic substance 

20 (within the meaning of section 7701(n)(1)) for 

21 the transaction giving rise to the claimed benefit 

22 or the transaction was not respected under sec23 tion 7701(n)(2), or 

24 ‘‘(B) the transaction fails to meet the re25 quirements of any similar rule of law. 
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1 ‘‘(d) RULES APPLICABLE TO COMPROMISE OF PEN2 ALTY.— 

3 ‘‘(1) IN GENERAL.—If the 1st letter of proposed 

4 deficiency which allows the taxpayer an opportunity 

5 for administrative review in the Internal Revenue 

6 Service Office of Appeals has been sent with respect 

7 to a penalty to which this section applies, only the 

8 Commissioner of Internal Revenue may compromise 

9 all or any portion of such penalty. 

10 ‘‘(2) APPLICABLE RULES.—The rules of para11 graphs (2), (3), (4), and (5) of section 6707A(d) shall 

12 apply for purposes of paragraph (1). 

13 ‘‘(e) COORDINATION WITH OTHER PENALTIES.—Ex14 cept as otherwise provided in this part, the penalty imposed 

15 by this section shall be in addition to any other penalty 

16 imposed by this title. 

17 ‘‘(f) CROSS REFERENCES.— 

‘‘(1) For coordination of penalty with understatements under section 6662 and other special rules, see 

section 6662A(e). 

‘‘(2) For reporting of penalty imposed under this 

section to the Securities and Exchange Commission, 

see section 6707A(e).’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections for 

19 part II of subchapter A of chapter 68 is amended by insert20 ing after the item relating to section 6662A the following 

21 new item: 

‘‘Sec. 6662B. Penalty for understatements attributable to transactions lacking economic substance, etc.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to transactions entered into after Feb3 ruary 2, 2004. 

4 SEC. 5615. MODIFICATIONS OF SUBSTANTIAL UNDERSTATE5 MENT PENALTY FOR NONREPORTABLE 

6 TRANSACTIONS. 

7 (a) SUBSTANTIAL UNDERSTATEMENT OF CORPORA8 TIONS.—Section 6662(d)(1)(B) (relating to special rule for 

9 corporations) is amended to read as follows: 

10 ‘‘(B) SPECIAL RULE FOR CORPORATIONS.— 

11 In the case of a corporation other than an S cor12 poration or a personal holding company (as de13 fined in section 542), there is a substantial un14 derstatement of income tax for any taxable year 

15 if the amount of the understatement for the tax16 able year exceeds the lesser of— 

17 ‘‘(i) 10 percent of the tax required to 

18 be shown on the return for the taxable year 

19 (or, if greater, $10,000), or 

20 ‘‘(ii) $10,000,000.’’. 

21 (b) REDUCTION FOR UNDERSTATEMENT OF TAXPAYER

22 DUE TO POSITION OF TAXPAYER OR DISCLOSED ITEM.— 

23 (1) IN GENERAL.—Section 6662(d)(2)(B)(i) (re24 lating to substantial authority) is amended to read as 

25 follows: 
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1 ‘‘(i) the tax treatment of any item by 

2 the taxpayer if the taxpayer had reasonable 

3 belief that the tax treatment was more likely 

4 than not the proper treatment, or’’. 

5 (2) CONFORMING AMENDMENT.—Section 6662(d) 

6 is amended by adding at the end the following new 

7 paragraph: 

8 ‘‘(3) SECRETARIAL LIST.—For purposes of this 

9 subsection, section 6664(d)(2), and section 6694(a)(1), 

10 the Secretary may prescribe a list of positions for 

11 which the Secretary believes there is not substantial 

12 authority or there is no reasonable belief that the tax 

13 treatment is more likely than not the proper tax 

14 treatment. Such list (and any revisions thereof) shall 

15 be published in the Federal Register or the Internal 

16 Revenue Bulletin.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by this 

18 section shall apply to taxable years beginning after the date 

19 of the enactment of this Act. 

20 SEC. 5616. TAX SHELTER EXCEPTION TO CONFIDENTIALITY 

21 PRIVILEGES RELATING TO TAXPAYER COM22 MUNICATIONS. 

23 (a) IN GENERAL.—Section 7525(b) (relating to section 

24 not to apply to communications regarding corporate tax 

25 shelters) is amended to read as follows: 
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HR 3550 EAS 

1 ‘‘(b) SECTION NOT TO APPLY TO COMMUNICATIONS

2 REGARDING TAX SHELTERS.—The privilege under sub3 section (a) shall not apply to any written communication 

4 which is— 

5 ‘‘(1) between a federally authorized tax practi6 tioner and— 

7 ‘‘(A) any person, 

8 ‘‘(B) any director, officer, employee, agent, 

9 or representative of the person, or 

10 ‘‘(C) any other person holding a capital or 

11 profits interest in the person, and 

12 ‘‘(2) in connection with the promotion of the di13 rect or indirect participation of the person in any tax 

14 shelter (as defined in section 1274(b)(3)(C)).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall apply to communications made on or after the 

17 date of the enactment of this Act. 

18 SEC. 5617. DISCLOSURE OF REPORTABLE TRANSACTIONS. 

19 (a) IN GENERAL.—Section 6111 (relating to registra20 tion of tax shelters) is amended to read as follows: 

21 ‘‘SEC. 6111. DISCLOSURE OF REPORTABLE TRANSACTIONS. 

22 ‘‘(a) IN GENERAL.—Each material advisor with re23 spect to any reportable transaction shall make a return (in 

24 such form as the Secretary may prescribe) setting forth— 
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1 ‘‘(1) information identifying and describing the 

2 transaction, 

3 ‘‘(2) information describing any potential tax 

4 benefits expected to result from the transaction, and 

5 ‘‘(3) such other information as the Secretary 

6 may prescribe. 

7 Such return shall be filed not later than the date specified 

8 by the Secretary. 

9 ‘‘(b) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) MATERIAL ADVISOR.— 

11 ‘‘(A) IN GENERAL.—The term ‘material ad12 visor’ means any person— 

13 ‘‘(i) who provides any material aid, 

14 assistance, or advice with respect to orga15 nizing, managing, promoting, selling, im16 plementing, or carrying out any reportable 

17 transaction, and 

18 ‘‘(ii) who directly or indirectly derives 

19 gross income in excess of the threshold 

20 amount for such aid, assistance, or advice. 

21 ‘‘(B) THRESHOLD AMOUNT.—For purposes 

22 of subparagraph (A), the threshold amount is— 

23 ‘‘(i) $50,000 in the case of a reportable 

24 transaction substantially all of the tax bene-
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1 fits from which are provided to natural per2 sons, and 

3 ‘‘(ii) $250,000 in any other case. 

4 ‘‘(2) REPORTABLE TRANSACTION.—The term ‘re5 portable transaction’ has the meaning given to such 

6 term by section 6707A(c). 

7 ‘‘(c) REGULATIONS.—The Secretary may prescribe reg8 ulations which provide— 

9 ‘‘(1) that only 1 person shall be required to meet 

10 the requirements of subsection (a) in cases in which 

11 2 or more persons would otherwise be required to meet 

12 such requirements, 

13 ‘‘(2) exemptions from the requirements of this 

14 section, and 

15 ‘‘(3) such rules as may be necessary or appro16 priate to carry out the purposes of this section.’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) The item relating to section 6111 in the table 

19 of sections for subchapter B of chapter 61 is amended 

20 to read as follows: 

‘‘Sec. 6111. Disclosure of reportable transactions.’’. 

21 (2)(A) So much of section 6112 as precedes sub22 section (c) thereof is amended to read as follows: 
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1 ‘‘SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANS2 ACTIONS MUST KEEP LISTS OF ADVISEES. 

3 ‘‘(a) IN GENERAL.—Each material advisor (as defined 

4 in section 6111) with respect to any reportable transaction 

5 (as defined in section 6707A(c)) shall maintain, in such 

6 manner as the Secretary may by regulations prescribe, a 

7 list— 

8 ‘‘(1) identifying each person with respect to 

9 whom such advisor acted as such a material advisor 

10 with respect to such transaction, and 

11 ‘‘(2) containing such other information as the 

12 Secretary may by regulations require. 

13 This section shall apply without regard to whether a mate14 rial advisor is required to file a return under section 6111 

15 with respect to such transaction.’’. 

16 (B) Section 6112 is amended by redesignating 

17 subsection (c) as subsection (b). 

18 (C) Section 6112(b), as redesignated by subpara19 graph (B), is amended— 

20 (i) by inserting ‘‘written’’ before ‘‘request’’ 

21 in paragraph (1)(A), and 

22 (ii) by striking ‘‘shall prescribe’’ in para23 graph (2) and inserting ‘‘may prescribe’’. 

24 (D) The item relating to section 6112 in the 

25 table of sections for subchapter B of chapter 61 is 

26 amended to read as follows: 
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‘‘Sec. 6112. Material advisors of reportable transactions must keep lists of 

advisees.’’. 

1 (3)(A) The heading for section 6708 is amended 

2 to read as follows: 

3 ‘‘SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES 

4 WITH RESPECT TO REPORTABLE TRANS5 ACTIONS.’’. 

6 (B) The item relating to section 6708 in the 

7 table of sections for part I of subchapter B of chapter 

8 68 is amended to read as follows: 

‘‘Sec. 6708. Failure to maintain lists of advisees with respect to reportable transactions.’’. 

9 (c) REQUIRED DISCLOSURE NOT SUBJECT TO CLAIM

10 OF CONFIDENTIALITY.—Subparagraph (A) of section 

11 6112(b)(1), as redesignated by subsection (b)(2)(B), is 

12 amended by adding at the end the following new flush sen13 tence: 

14 ‘‘For purposes of this section, the identity of any per15 son on such list shall not be privileged.’’. 

16 (d) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section shall 

19 apply to transactions with respect to which material 

20 aid, assistance, or advice referred to in section 

21 6111(b)(1)(A)(i) of the Internal Revenue Code of 1986 

22 (as added by this section) is provided after the date 

23 of the enactment of this Act. 
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1 (2) NO CLAIM OF CONFIDENTIALITY AGAINST DIS2 CLOSURE.—The amendment made by subsection (c) 

3 shall take effect as if included in the amendments 

4 made by section 142 of the Deficit Reduction Act of 

5 1984. 

6 SEC. 5618. MODIFICATIONS TO PENALTY FOR FAILURE TO 

7 REGISTER TAX SHELTERS. 

8 (a) IN GENERAL.—Section 6707 (relating to failure to 

9 furnish information regarding tax shelters) is amended to 

10 read as follows: 

11 ‘‘SEC. 6707. FAILURE TO FURNISH INFORMATION REGARD12 ING REPORTABLE TRANSACTIONS. 

13 ‘‘(a) IN GENERAL.—If a person who is required to file 

14 a return under section 6111(a) with respect to any report15 able transaction— 

16 ‘‘(1) fails to file such return on or before the date 

17 prescribed therefor, or 

18 ‘‘(2) files false or incomplete information with 

19 the Secretary with respect to such transaction, 

20 such person shall pay a penalty with respect to such return 

21 in the amount determined under subsection (b). 

22 ‘‘(b) AMOUNT OF PENALTY.— 

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), the penalty imposed under subsection (a) 

25 with respect to any failure shall be $50,000. 
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1 ‘‘(2) LISTED TRANSACTIONS.—The penalty im2 posed under subsection (a) with respect to any listed 

3 transaction shall be an amount equal to the greater 

4 of— 

5 ‘‘(A) $200,000, or 

6 ‘‘(B) 50 percent of the gross income derived 

7 by such person with respect to aid, assistance, or 

8 advice which is provided with respect to the list9 ed transaction before the date the return includ10 ing the transaction is filed under section 6111. 

11 Subparagraph (B) shall be applied by substituting 

12 ‘75 percent’ for ‘50 percent’ in the case of an inten13 tional failure or act described in subsection (a). 

14 ‘‘(c) CERTAIN RULES TO APPLY.—The provisions of 

15 section 6707A(d) shall apply to any penalty imposed under 

16 this section. 

17 ‘‘(d) REPORTABLE AND LISTED TRANSACTIONS.—The 

18 terms ‘reportable transaction’ and ‘listed transaction’ have 

19 the respective meanings given to such terms by section 

20 6707A(c).’’. 

21 (b) CLERICAL AMENDMENT.—The item relating to sec22 tion 6707 in the table of sections for part I of subchapter 

23 B of chapter 68 is amended by striking ‘‘tax shelters’’ and 

24 inserting ‘‘reportable transactions’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to returns the due date for which is after 

3 the date of the enactment of this Act. 

4 SEC. 5619. MODIFICATION OF PENALTY FOR FAILURE TO 

5 MAINTAIN LISTS OF INVESTORS. 

6 (a) IN GENERAL.—Subsection (a) of section 6708 is 

7 amended to read as follows: 

8 ‘‘(a) IMPOSITION OF PENALTY.— 

9 ‘‘(1) IN GENERAL.—If any person who is re10 quired to maintain a list under section 6112(a) fails 

11 to make such list available upon written request to 

12 the Secretary in accordance with section 

13 6112(b)(1)(A) within 20 business days after the date 

14 of the Secretary’s request, such person shall pay a 

15 penalty of $10,000 for each day of such failure after 

16 such 20th day. 

17 ‘‘(2) REASONABLE CAUSE EXCEPTION.—No pen18 alty shall be imposed by paragraph (1) with respect 

19 to the failure on any day if such failure is due to rea20 sonable cause.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to requests made after the date of the 

23 enactment of this Act. 
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1 SEC. 5620. MODIFICATION OF ACTIONS TO ENJOIN CERTAIN 

2 CONDUCT RELATED TO TAX SHELTERS AND 

3 REPORTABLE TRANSACTIONS. 

4 (a) IN GENERAL.—Section 7408 (relating to action to 

5 enjoin promoters of abusive tax shelters, etc.) is amended 

6 by redesignating subsection (c) as subsection (d) and by 

7 striking subsections (a) and (b) and inserting the following 

8 new subsections: 

9 ‘‘(a) AUTHORITY TO SEEK INJUNCTION.—A civil ac10 tion in the name of the United States to enjoin any person 

11 from further engaging in specified conduct may be com12 menced at the request of the Secretary. Any action under 

13 this section shall be brought in the district court of the 

14 United States for the district in which such person resides, 

15 has his principal place of business, or has engaged in speci16 fied conduct. The court may exercise its jurisdiction over 

17 such action (as provided in section 7402(a)) separate and 

18 apart from any other action brought by the United States 

19 against such person. 

20 ‘‘(b) ADJUDICATION AND DECREE.—In any action 

21 under subsection (a), if the court finds— 

22 ‘‘(1) that the person has engaged in any specified 

23 conduct, and 

24 ‘‘(2) that injunctive relief is appropriate to pre25 vent recurrence of such conduct, 
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1 the court may enjoin such person from engaging in such 

2 conduct or in any other activity subject to penalty under 

3 this title. 

4 ‘‘(c) SPECIFIED CONDUCT.—For purposes of this sec5 tion, the term ‘specified conduct’ means any action, or fail6 ure to take action, subject to penalty under section 6700, 

7 6701, 6707, or 6708.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) The heading for section 7408 is amended to 

10 read as follows: 

11 ‘‘SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RE12 LATED TO TAX SHELTERS AND REPORTABLE 

13 TRANSACTIONS.’’. 

14 (2) The table of sections for subchapter A of 

15 chapter 67 is amended by striking the item relating 

16 to section 7408 and inserting the following new item: 

‘‘Sec. 7408. Actions to enjoin specified conduct related to tax shelters and reportable transactions.’’. 

17 (c) EFFECTIVE DATE.—The amendment made by this 

18 section shall take effect on the day after the date of the en19 actment of this Act. 

20 SEC. 5621. UNDERSTATEMENT OF TAXPAYER’S LIABILITY BY 

21 INCOME TAX RETURN PREPARER. 

22 (a) STANDARDS CONFORMED TO TAXPAYER STAND23 ARDS.—Section 6694(a) (relating to understatements due to 

24 unrealistic positions) is amended— 
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1 (1) by striking ‘‘realistic possibility of being sus2 tained on its merits’’ in paragraph (1) and inserting 

3 ‘‘reasonable belief that the tax treatment in such posi4 tion was more likely than not the proper treatment’’, 

5 (2) by striking ‘‘or was frivolous’’ in paragraph 

6 (3) and inserting ‘‘or there was no reasonable basis 

7 for the tax treatment of such position’’, and 

8 (3) by striking ‘‘UNREALISTIC’’ in the heading 

9 and inserting ‘‘IMPROPER’’. 

10 (b) AMOUNT OF PENALTY.—Section 6694 is amend11 ed— 

12 (1) by striking ‘‘$250’’ in subsection (a) and in13 serting ‘‘$1,000’’, and 

14 (2) by striking ‘‘$1,000’’ in subsection (b) and 

15 inserting ‘‘$5,000’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to documents prepared after the date 

18 of the enactment of this Act. 

19 SEC. 5622. PENALTY ON FAILURE TO REPORT INTERESTS IN 

20 FOREIGN FINANCIAL ACCOUNTS. 

21 (a) IN GENERAL.—Section 5321(a)(5) of title 31, 

22 United States Code, is amended to read as follows: 

23 ‘‘(5) FOREIGN FINANCIAL AGENCY TRANSACTION

24 VIOLATION.— 
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1 ‘‘(A) PENALTY AUTHORIZED.—The Sec2 retary of the Treasury may impose a civil money 

3 penalty on any person who violates, or causes 

4 any violation of, any provision of section 5314. 

5 ‘‘(B) AMOUNT OF PENALTY.— 

6 ‘‘(i) IN GENERAL.—Except as provided 

7 in subparagraph (C), the amount of any 

8 civil penalty imposed under subparagraph 

9 (A) shall not exceed $5,000. 

10 ‘‘(ii) REASONABLE CAUSE EXCEP11 TION.—No penalty shall be imposed under 

12 subparagraph (A) with respect to any viola13 tion if— 

14 ‘‘(I) such violation was due to 

15 reasonable cause, and 

16 ‘‘(II) the amount of the trans17 action or the balance in the account at 

18 the time of the transaction was prop19 erly reported. 

20 ‘‘(C) WILLFUL VIOLATIONS.—In the case of 

21 any person willfully violating, or willfully caus22 ing any violation of, any provision of section 

23 5314— 
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HR 3550 EAS 

1 ‘‘(i) the maximum penalty under sub2 paragraph (B)(i) shall be increased to the 

3 greater of— 

4 ‘‘(I) $25,000, or 

5 ‘‘(II) the amount (not exceeding 

6 $100,000) determined under subpara7 graph (D), and 

8 ‘‘(ii) subparagraph (B)(ii) shall not 

9 apply. 

10 ‘‘(D) AMOUNT.—The amount determined 

11 under this subparagraph is— 

12 ‘‘(i) in the case of a violation involving 

13 a transaction, the amount of the trans14 action, or 

15 ‘‘(ii) in the case of a violation involv16 ing a failure to report the existence of an 

17 account or any identifying information re18 quired to be provided with respect to an ac19 count, the balance in the account at the 

20 time of the violation.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to violations occurring after the date of 

23 the enactment of this Act. 
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1 SEC. 5623. FRIVOLOUS TAX SUBMISSIONS. 

2 (a) CIVIL PENALTIES.—Section 6702 is amended to 

3 read as follows: 

4 ‘‘SEC. 6702. FRIVOLOUS TAX SUBMISSIONS. 

5 ‘‘(a) CIVIL PENALTY FOR FRIVOLOUS TAX RE6 TURNS.—A person shall pay a penalty of $5,000 if— 

7 ‘‘(1) such person files what purports to be a re8 turn of a tax imposed by this title but which— 

9 ‘‘(A) does not contain information on which 

10 the substantial correctness of the self-assessment 

11 may be judged, or 

12 ‘‘(B) contains information that on its face 

13 indicates that the self-assessment is substantially 

14 incorrect; and 

15 ‘‘(2) the conduct referred to in paragraph (1)— 

16 ‘‘(A) is based on a position which the Sec17 retary has identified as frivolous under sub18 section (c), or 

19 ‘‘(B) reflects a desire to delay or impede the 

20 administration of Federal tax laws. 

21 ‘‘(b) CIVIL PENALTY FOR SPECIFIED FRIVOLOUS SUB22 MISSIONS.— 

23 ‘‘(1) IMPOSITION OF PENALTY.—Except as pro24 vided in paragraph (3), any person who submits a 

25 specified frivolous submission shall pay a penalty of 

26 $5,000. 
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1 ‘‘(2) SPECIFIED FRIVOLOUS SUBMISSION.—For 

2 purposes of this section— 

3 ‘‘(A) SPECIFIED FRIVOLOUS SUBMISSION.— 

4 The term ‘specified frivolous submission’ means 

5 a specified submission if any portion of such 

6 submission— 

7 ‘‘(i) is based on a position which the 

8 Secretary has identified as frivolous under 

9 subsection (c), or 

10 ‘‘(ii) reflects a desire to delay or im11 pede the administration of Federal tax 

12 laws. 

13 ‘‘(B) SPECIFIED SUBMISSION.—The term 

14 ‘specified submission’ means— 

15 ‘‘(i) a request for a hearing under— 

16 ‘‘(I) section 6320 (relating to no17 tice and opportunity for hearing upon 

18 filing of notice of lien), or 

19 ‘‘(II) section 6330 (relating to no20 tice and opportunity for hearing before 

21 levy), and 

22 ‘‘(ii) an application under— 

23 ‘‘(I) section 6159 (relating to 

24 agreements for payment of tax liability 

25 in installments), 
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1 ‘‘(II) section 7122 (relating to 

2 compromises), or 

3 ‘‘(III) section 7811 (relating to 

4 taxpayer assistance orders). 

5 ‘‘(3) OPPORTUNITY TO WITHDRAW SUBMIS6 SION.—If the Secretary provides a person with notice 

7 that a submission is a specified frivolous submission 

8 and such person withdraws such submission within 

9 30 days after such notice, the penalty imposed under 

10 paragraph (1) shall not apply with respect to such 

11 submission. 

12 ‘‘(c) LISTING OF FRIVOLOUS POSITIONS.—The Sec13 retary shall prescribe (and periodically revise) a list of posi14 tions which the Secretary has identified as being frivolous 

15 for purposes of this subsection. The Secretary shall not in16 clude in such list any position that the Secretary deter17 mines meets the requirement of section 

18 6662(d)(2)(B)(ii)(II). 

19 ‘‘(d) REDUCTION OF PENALTY.—The Secretary may 

20 reduce the amount of any penalty imposed under this sec21 tion if the Secretary determines that such reduction would 

22 promote compliance with and administration of the Federal 

23 tax laws. 
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1 ‘‘(e) PENALTIES IN ADDITION TO OTHER PEN2 ALTIES.—The penalties imposed by this section shall be in 

3 addition to any other penalty provided by law.’’. 

4 (b) TREATMENT OF FRIVOLOUS REQUESTS FOR HEAR5 INGS BEFORE LEVY.— 

6 (1) FRIVOLOUS REQUESTS DISREGARDED.—Sec7 tion 6330 (relating to notice and opportunity for 

8 hearing before levy) is amended by adding at the end 

9 the following new subsection: 

10 ‘‘(g) FRIVOLOUS REQUESTS FOR HEARING, ETC.— 

11 Notwithstanding any other provision of this section, if the 

12 Secretary determines that any portion of a request for a 

13 hearing under this section or section 6320 meets the require14 ment of clause (i) or (ii) of section 6702(b)(2)(A), then the 

15 Secretary may treat such portion as if it were never sub16 mitted and such portion shall not be subject to any further 

17 administrative or judicial review.’’. 

18 (2) PRECLUSION FROM RAISING FRIVOLOUS

19 ISSUES AT HEARING.—Section 6330(c)(4) is amend20 ed— 

21 (A) by striking ‘‘(A)’’ and inserting 

22 ‘‘(A)(i)’’; 

23 (B) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; 

24 (C) by striking the period at the end of the 

25 first sentence and inserting ‘‘; or’’; and 
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HR 3550 EAS 

1 (D) by inserting after subparagraph (A)(ii) 

2 (as so redesignated) the following: 

3 ‘‘(B) the issue meets the requirement of 

4 clause (i) or (ii) of section 6702(b)(2)(A).’’. 

5 (3) STATEMENT OF GROUNDS.—Section 

6 6330(b)(1) is amended by striking ‘‘under subsection 

7 (a)(3)(B)’’ and inserting ‘‘in writing under subsection 

8 (a)(3)(B) and states the grounds for the requested 

9 hearing’’. 

10 (c) TREATMENT OF FRIVOLOUS REQUESTS FOR HEAR11 INGS UPON FILING OF NOTICE OF LIEN.—Section 6320 is 

12 amended— 

13 (1) in subsection (b)(1), by striking ‘‘under sub14 section (a)(3)(B)’’ and inserting ‘‘in writing under 

15 subsection (a)(3)(B) and states the grounds for the re16 quested hearing’’, and 

17 (2) in subsection (c), by striking ‘‘and (e)’’ and 

18 inserting ‘‘(e), and (g)’’. 

19 (d) TREATMENT OF FRIVOLOUS APPLICATIONS FOR

20 OFFERS-IN-COMPROMISE AND INSTALLMENT AGREE21 MENTS.—Section 7122 is amended by adding at the end 

22 the following new subsection: 

23 ‘‘(e) FRIVOLOUS SUBMISSIONS, ETC.—Notwith24 standing any other provision of this section, if the Secretary 

25 determines that any portion of an application for an offer- 
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1 in-compromise or installment agreement submitted under 

2 this section or section 6159 meets the requirement of clause 

3 (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 

4 treat such portion as if it were never submitted and such 

5 portion shall not be subject to any further administrative 

6 or judicial review.’’. 

7 (e) CLERICAL AMENDMENT.—The table of sections for 

8 part I of subchapter B of chapter 68 is amended by striking 

9 the item relating to section 6702 and inserting the following 

10 new item: 

‘‘Sec. 6702. Frivolous tax submissions.’’. 

11 (f) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to submissions made and issues raised 

13 after the date on which the Secretary first prescribes a list 

14 under section 6702(c) of the Internal Revenue Code of 1986, 

15 as amended by subsection (a). 

16 SEC. 5624. REGULATION OF INDIVIDUALS PRACTICING BE17 FORE THE DEPARTMENT OF TREASURY. 

18 (a) CENSURE; IMPOSITION OF PENALTY.— 

19 (1) IN GENERAL.—Section 330(b) of title 31, 

20 United States Code, is amended— 

21 (A) by inserting ‘‘, or censure,’’ after ‘‘De22 partment’’, and 

23 (B) by adding at the end the following new 

24 flush sentence: 
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1 ‘‘The Secretary may impose a monetary penalty on any 

2 representative described in the preceding sentence. If the 

3 representative was acting on behalf of an employer or any 

4 firm or other entity in connection with the conduct giving 

5 rise to such penalty, the Secretary may impose a monetary 

6 penalty on such employer, firm, or entity if it knew, or 

7 reasonably should have known, of such conduct. Such pen8 alty shall not exceed the gross income derived (or to be de9 rived) from the conduct giving rise to the penalty and may 

10 be in addition to, or in lieu of, any suspension, disbarment, 

11 or censure of the representative.’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to actions taken after 

14 the date of the enactment of this Act. 

15 (b) TAX SHELTER OPINIONS, ETC.—Section 330 of 

16 such title 31 is amended by adding at the end the following 

17 new subsection: 

18 ‘‘(d) Nothing in this section or in any other provision 

19 of law shall be construed to limit the authority of the Sec20 retary of the Treasury to impose standards applicable to 

21 the rendering of written advice with respect to any entity, 

22 transaction plan or arrangement, or other plan or arrange23 ment, which is of a type which the Secretary determines 

24 as having a potential for tax avoidance or evasion.’’. 
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1 SEC. 5625. PENALTY ON PROMOTERS OF TAX SHELTERS. 

2 (a) PENALTY ON PROMOTING ABUSIVE TAX SHEL3 TERS.—Section 6700(a) is amended by adding at the end 

4 the following new sentence: ‘‘Notwithstanding the first sen5 tence, if an activity with respect to which a penalty im6 posed under this subsection involves a statement described 

7 in paragraph (2)(A), the amount of the penalty shall be 

8 equal to 50 percent of the gross income derived (or to be 

9 derived) from such activity by the person on which the pen10 alty is imposed.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by this 

12 section shall apply to activities after the date of the enact13 ment of this Act. 

14 SEC. 5626. STATUTE OF LIMITATIONS FOR TAXABLE YEARS 

15 FOR WHICH REQUIRED LISTED TRANS16 ACTIONS NOT REPORTED. 

17 (a) IN GENERAL.—Section 6501(c) (relating to excep18 tions) is amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(10) LISTED TRANSACTIONS.—If a taxpayer 

21 fails to include on any return or statement for any 

22 taxable year any information with respect to a listed 

23 transaction (as defined in section 6707A(c)(2)) which 

24 is required under section 6011 to be included with 

25 such return or statement, the time for assessment of 

26 any tax imposed by this title with respect to such 
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1 transaction shall not expire before the date which is 

2 1 year after the earlier of— 

3 ‘‘(A) the date on which the Secretary is fur4 nished the information so required; or 

5 ‘‘(B) the date that a material advisor (as 

6 defined in section 6111) meets the requirements 

7 of section 6112 with respect to a request by the 

8 Secretary under section 6112(b) relating to such 

9 transaction with respect to such taxpayer.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by this 

11 section shall apply to taxable years with respect to which 

12 the period for assessing a deficiency did not expire before 

13 the date of the enactment of this Act. 

14 SEC. 5627. DENIAL OF DEDUCTION FOR INTEREST ON UN15 DERPAYMENTS ATTRIBUTABLE TO NONDIS16 CLOSED REPORTABLE AND NONECONOMIC 

17 SUBSTANCE TRANSACTIONS. 

18 (a) IN GENERAL.—Section 163 (relating to deduction 

19 for interest) is amended by redesignating subsection (m) as 

20 subsection (n) and by inserting after subsection (l) the fol21 lowing new subsection: 

22 ‘‘(m) INTEREST ON UNPAID TAXES ATTRIBUTABLE TO

23 NONDISCLOSED REPORTABLE TRANSACTIONS AND NON24 ECONOMIC SUBSTANCE TRANSACTIONS.—No deduction shall 

25 be allowed under this chapter for any interest paid or ac-
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1 crued under section 6601 on any underpayment of tax 

2 which is attributable to— 

3 ‘‘(1) the portion of any reportable transaction 

4 understatement (as defined in section 6662A(b)) with 

5 respect to which the requirement of section 

6 6664(d)(2)(A) is not met, or 

7 ‘‘(2) any noneconomic substance transaction un8 derstatement (as defined in section 6662B(c)).’’. 

9 (b) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to transactions in taxable years begin11 ning after the date of the enactment of this Act. 

12 SEC. 5628. AUTHORIZATION OF APPROPRIATIONS FOR TAX 

13 LAW ENFORCEMENT. 

14 There is authorized to be appropriated $300,000,000 

15 for each fiscal year beginning after September 30, 2003, for 

16 the purpose of carrying out tax law enforcement to combat 

17 tax avoidance transactions and other tax shelters, including 

18 the use of offshore financial accounts to conceal taxable in19 come. 

20 PART III—OTHER CORPORATE GOVERNANCE 

21 PROVISIONS 

22 SEC. 5631. AFFIRMATION OF CONSOLIDATED RETURN REG23 ULATION AUTHORITY. 

24 (a) IN GENERAL.—Section 1502 (relating to consoli25 dated return regulations) is amended by adding at the end 
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1 the following new sentence: ‘‘In prescribing such regula2 tions, the Secretary may prescribe rules applicable to cor3 porations filing consolidated returns under section 1501 

4 that are different from other provisions of this title that 

5 would apply if such corporations filed separate returns.’’. 

6 (b) RESULT NOT OVERTURNED.—Notwithstanding 

7 subsection (a), the Internal Revenue Code of 1986 shall be 

8 construed by treating Treasury regulation § 1.1502– 

9 20(c)(1)(iii) (as in effect on January 1, 2001) as being in10 applicable to the type of factual situation in 255 F.3d 1357 

11 (Fed. Cir. 2001). 

12 (c) EFFECTIVE DATE.—The provisions of this section 

13 shall apply to taxable years beginning before, on, or after 

14 the date of the enactment of this Act. 

15 SEC. 5632. DECLARATION BY CHIEF EXECUTIVE OFFICER 

16 RELATING TO FEDERAL ANNUAL CORPORATE 

17 INCOME TAX RETURN. 

18 (a) IN GENERAL.—The Federal tax return of a cor19 poration with respect to income shall also include a declara20 tion signed by the chief executive officer of such corporation 

21 (or other such officer of the corporation as the Secretary 

22 of the Treasury may designate if the corporation does not 

23 have a chief executive officer), under penalties of perjury, 

24 that the chief executive officer has established processes and 

25 procedures that ensure that such return complies with the 
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1 Internal Revenue Code of 1986 and that the chief executive 

2 officer was provided reasonable assurance of the accuracy 

3 of all material aspects of such return. The preceding sen4 tence shall not apply to any return of a regulated invest5 ment company (within the meaning of section 851 of such 

6 Code). 

7 (b) EFFECTIVE DATE.—This section shall apply to 

8 Federal tax returns filed after the date of the enactment 

9 of this Act. 

10 SEC. 5633. DENIAL OF DEDUCTION FOR CERTAIN FINES, 

11 PENALTIES, AND OTHER AMOUNTS. 

12 (a) IN GENERAL.—Subsection (f) of section 162 (relat13 ing to trade or business expenses) is amended to read as 

14 follows: 

15 ‘‘(f) FINES, PENALTIES, AND OTHER AMOUNTS.— 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), no deduction otherwise allowable shall be 

18 allowed under this chapter for any amount paid or 

19 incurred (whether by suit, agreement, or otherwise) 

20 to, or at the direction of, a government or entity de21 scribed in paragraph (4) in relation to the violation 

22 of any law or the investigation or inquiry by such 

23 government or entity into the potential violation of 

24 any law. 
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1 ‘‘(2) EXCEPTION FOR AMOUNTS CONSTITUTING

2 RESTITUTION.—Paragraph (1) shall not apply to any 

3 amount which the taxpayer establishes constitutes res4 titution for damage or harm caused by the violation 

5 of any law or the potential violation of any law. This 

6 paragraph shall not apply to any amount paid or in7 curred as reimbursement to the government or entity 

8 for the costs of any investigation or litigation. 

9 ‘‘(3) EXCEPTION FOR AMOUNTS PAID OR IN10 CURRED AS THE RESULT OF CERTAIN COURT OR11 DERS.—Paragraph (1) shall not apply to any 

12 amount paid or incurred by order of a court in a suit 

13 in which no government or entity described in para14 graph (4) is a party. 

15 ‘‘(4) CERTAIN NONGOVERNMENTAL REGULATORY

16 ENTITIES.—An entity is described in this paragraph 

17 if it is— 

18 ‘‘(A) a nongovernmental entity which exer19 cises self-regulatory powers (including imposing 

20 sanctions) in connection with a qualified board 

21 or exchange (as defined in section 1256(g)(7)), or 

22 ‘‘(B) to the extent provided in regulations, 

23 a nongovernmental entity which exercises self24 regulatory powers (including imposing sanc-
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1 tions) as part of performing an essential govern2 mental function.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by this 

4 section shall apply to amounts paid or incurred after April 

5 27, 2003, except that such amendment shall not apply to 

6 amounts paid or incurred under any binding order or 

7 agreement entered into on or before April 27, 2003. Such 

8 exception shall not apply to an order or agreement requir9 ing court approval unless the approval was obtained on or 

10 before April 27, 2003. 

11 SEC. 5634. DISALLOWANCE OF DEDUCTION FOR PUNITIVE 

12 DAMAGES. 

13 (a) DISALLOWANCE OF DEDUCTION.— 

14 (1) IN GENERAL.—Section 162(g) (relating to 

15 treble damage payments under the antitrust laws) is 

16 amended by adding at the end the following new 

17 paragraph: 

18 ‘‘(2) PUNITIVE DAMAGES.—No deduction shall be 

19 allowed under this chapter for any amount paid or 

20 incurred for punitive damages in connection with 

21 any judgment in, or settlement of, any action. This 

22 paragraph shall not apply to punitive damages de23 scribed in section 104(c).’’. 

24 (2) CONFORMING AMENDMENTS.— 

25 (A) Section 162(g) is amended— 
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1 (i) by striking ‘‘If’’ and inserting: 

2 ‘‘(1) TREBLE DAMAGES.—If’’, and 

3 (ii) by redesignating paragraphs (1) 

4 and (2) as subparagraphs (A) and (B), re5 spectively. 

6 (B) The heading for section 162(g) is 

7 amended by inserting ‘‘OR PUNITIVE DAMAGES’’ 

8 after ‘‘LAWS’’. 

9 (b) INCLUSION IN INCOME OF PUNITIVE DAMAGES

10 PAID BY INSURER OR OTHERWISE.— 

11 (1) IN GENERAL.—Part II of subchapter B of 

12 chapter 1 (relating to items specifically included in 

13 gross income) is amended by adding at the end the 

14 following new section: 

15 ‘‘SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSUR16 ANCE OR OTHERWISE. 

17 ‘‘Gross income shall include any amount paid to or 

18 on behalf of a taxpayer as insurance or otherwise by reason 

19 of the taxpayer’s liability (or agreement) to pay punitive 

20 damages.’’. 

21 (2) REPORTING REQUIREMENTS.—Section 6041 

22 (relating to information at source) is amended by 

23 adding at the end the following new subsection: 

24 ‘‘(f) SECTION TO APPLY TO PUNITIVE DAMAGES COM25 PENSATION.—This section shall apply to payments by a 
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1 person to or on behalf of another person as insurance or 

2 otherwise by reason of the other person’s liability (or agree3 ment) to pay punitive damages.’’. 

4 (3) CONFORMING AMENDMENT.—The table of sec5 tions for part II of subchapter B of chapter 1 is 

6 amended by adding at the end the following new item: 

‘‘Sec. 91. Punitive damages compensated by insurance or otherwise.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to damages paid or incurred on or after 

9 the date of the enactment of this Act. 

10 SEC. 5635. INCREASE IN CRIMINAL MONETARY PENALTY 

11 LIMITATION FOR THE UNDERPAYMENT OR 

12 OVERPAYMENT OF TAX DUE TO FRAUD. 

13 (a) IN GENERAL.—Section 7206 (relating to fraud and 

14 false statements) is amended— 

15 (1) by striking ‘‘Any person who—’’ and insert16 ing ‘‘(a) IN GENERAL.—Any person who—’’, and 

17 (2) by adding at the end the following new sub18 section: 

19 ‘‘(b) INCREASE IN MONETARY LIMITATION FOR UN20 DERPAYMENT OR OVERPAYMENT OF TAX DUE TO FRAUD.— 

21 If any portion of any underpayment (as defined in section 

22 6664(a)) or overpayment (as defined in section 6401(a)) of 

23 tax required to be shown on a return is attributable to 

24 fraudulent action described in subsection (a), the applicable 

25 dollar amount under subsection (a) shall in no event be less 
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1 than an amount equal to such portion. A rule similar to 

2 the rule under section 6663(b) shall apply for purposes of 

3 determining the portion so attributable.’’. 

4 (b) INCREASE IN PENALTIES.— 

5 (1) ATTEMPT TO EVADE OR DEFEAT TAX.—Sec6 tion 7201 is amended— 

7 (A) by striking ‘‘$100,000’’ and inserting 

8 ‘‘$250,000’’, 

9 (B) by striking ‘‘$500,000’’ and inserting 

10 ‘‘$1,000,000’’, and 

11 (C) by striking ‘‘5 years’’ and inserting ‘‘10 

12 years’’. 

13 (2) WILLFUL FAILURE TO FILE RETURN, SUPPLY

14 INFORMATION, OR PAY TAX.—Section 7203 is amend15 ed— 

16 (A) in the first sentence— 

17 (i) by striking ‘‘misdemeanor’’ and in18 serting ‘‘felony’’, and 

19 (ii) by striking ‘‘1 year’’ and inserting 

20 ‘‘10 years’’, and 

21 (B) by striking the third sentence. 

22 (3) FRAUD AND FALSE STATEMENTS.—Section 

23 7206(a) (as redesignated by subsection (a)) is amend24 ed— 
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1 (A) by striking ‘‘$100,000’’ and inserting 

2 ‘‘$250,000’’, 

3 (B) by striking ‘‘$500,000’’ and inserting 

4 ‘‘$1,000,000’’, and 

5 (C) by striking ‘‘3 years’’ and inserting ‘‘5 

6 years’’. 

7 (c) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to underpayments and overpayments at9 tributable to actions occurring after the date of the enact10 ment of this Act. 

11 SEC. 5636. DOUBLING OF CERTAIN PENALTIES, FINES, AND 

12 INTEREST ON UNDERPAYMENTS RELATED TO 

13 CERTAIN OFFSHORE FINANCIAL ARRANGE14 MENTS. 

15 (a) GENERAL RULE.—If— 

16 (1) a taxpayer eligible to participate in— 

17 (A) the Department of the Treasury’s Off18 shore Voluntary Compliance Initiative, or 

19 (B) the Department of the Treasury’s vol20 untary disclosure initiative which applies to the 

21 taxpayer by reason of the taxpayer’s under22 reporting of United States income tax liability 

23 through financial arrangements which rely on 

24 the use of offshore arrangements which were the 
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1 subject of the initiative described in subpara2 graph (A), and 

3 (2) any interest or applicable penalty is imposed 

4 with respect to any arrangement to which any initia5 tive described in paragraph (1) applied or to any un6 derpayment of Federal income tax attributable to 

7 items arising in connection with any arrangement 

8 described in paragraph (1), 

9 then, notwithstanding any other provision of law, the 

10 amount of such interest or penalty shall be equal to twice 

11 that determined without regard to this section. 

12 (b) DEFINITIONS AND RULES.—For purposes of this 

13 section— 

14 (1) APPLICABLE PENALTY.—The term ‘‘applica15 ble penalty’’ means any penalty, addition to tax, or 

16 fine imposed under chapter 68 of the Internal Rev17 enue Code of 1986. 

18 (2) VOLUNTARY OFFSHORE COMPLIANCE INITIA19 TIVE.—The term ‘‘Voluntary Offshore Compliance 

20 Initiative’’ means the program established by the De21 partment of the Treasury in January of 2003 under 

22 which any taxpayer was eligible to voluntarily dis23 close previously undisclosed income on assets placed 

24 in offshore accounts and accessed through credit card 

25 and other financial arrangements. 
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1 (3) PARTICIPATION.—A taxpayer shall be treated 

2 as having participated in the Voluntary Offshore 

3 Compliance Initiative if the taxpayer submitted the 

4 request in a timely manner and all information re5 quested by the Secretary of the Treasury or his dele6 gate within a reasonable period of time following the 

7 request. 

8 (c) EFFECTIVE DATE.—The provisions of this section 

9 shall apply to interest, penalties, additions to tax, and fines 

10 with respect to any taxable year if as of the date of the 

11 enactment of this Act, the assessment of any tax, penalty, 

12 or interest with respect to such taxable year is not prevented 

13 by the operation of any law or rule of law. 

14 PART IV—ENRON-RELATED TAX SHELTER 

15 PROVISIONS 

16 SEC. 5641. LIMITATION ON TRANSFER OR IMPORTATION OF 

17 BUILT-IN LOSSES. 

18 (a) IN GENERAL.—Section 362 (relating to basis to 

19 corporations) is amended by adding at the end the following 

20 new subsection: 

21 ‘‘(e) LIMITATIONS ON BUILT-IN LOSSES.— 

22 ‘‘(1) LIMITATION ON IMPORTATION OF BUILT-IN

23 LOSSES.— 

24 ‘‘(A) IN GENERAL.—If in any transaction 

25 described in subsection (a) or (b) there would 
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1 (but for this subsection) be an importation of a 

2 net built-in loss, the basis of each property de3 scribed in subparagraph (B) which is acquired 

4 in such transaction shall (notwithstanding sub5 sections (a) and (b)) be its fair market value im6 mediately after such transaction. 

7 ‘‘(B) PROPERTY DESCRIBED.—For purposes 

8 of subparagraph (A), property is described in 

9 this subparagraph if— 

10 ‘‘(i) gain or loss with respect to such 

11 property is not subject to tax under this 

12 subtitle in the hands of the transferor imme13 diately before the transfer, and 

14 ‘‘(ii) gain or loss with respect to such 

15 property is subject to such tax in the hands 

16 of the transferee immediately after such 

17 transfer. 

18 In any case in which the transferor is a partner19 ship, the preceding sentence shall be applied by 

20 treating each partner in such partnership as 

21 holding such partner’s proportionate share of the 

22 property of such partnership. 

23 ‘‘(C) IMPORTATION OF NET BUILT-IN

24 LOSS.—For purposes of subparagraph (A), there 

25 is an importation of a net built-in loss in a 
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1 transaction if the transferee’s aggregate adjusted 

2 bases of property described in subparagraph (B) 

3 which is transferred in such transaction would 

4 (but for this paragraph) exceed the fair market 

5 value of such property immediately after such 

6 transaction.’’. 

7 ‘‘(2) LIMITATION ON TRANSFER OF BUILT-IN

8 LOSSES IN SECTION 351 TRANSACTIONS.— 

9 ‘‘(A) IN GENERAL.—If— 

10 ‘‘(i) property is transferred by a trans11 feror in any transaction which is described 

12 in subsection (a) and which is not described 

13 in paragraph (1) of this subsection, and 

14 ‘‘(ii) the transferee’s aggregate adjusted 

15 bases of such property so transferred would 

16 (but for this paragraph) exceed the fair 

17 market value of such property immediately 

18 after such transaction, 

19 then, notwithstanding subsection (a), the trans20 feree’s aggregate adjusted bases of the property so 

21 transferred shall not exceed the fair market value 

22 of such property immediately after such trans23 action. 

24 ‘‘(B) ALLOCATION OF BASIS REDUCTION.— 

25 The aggregate reduction in basis by reason of 
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1 subparagraph (A) shall be allocated among the 

2 property so transferred in proportion to their re3 spective built-in losses immediately before the 

4 transaction. 

5 ‘‘(C) EXCEPTION FOR TRANSFERS WITHIN

6 AFFILIATED GROUP.—Subparagraph (A) shall 

7 not apply to any transaction if the transferor 

8 owns stock in the transferee meeting the require9 ments of section 1504(a)(2). In the case of prop10 erty to which subparagraph (A) does not apply 

11 by reason of the preceding sentence, the trans12 feror’s basis in the stock received for such prop13 erty shall not exceed its fair market value imme14 diately after the transfer.’’. 

15 (b) COMPARABLE TREATMENT WHERE LIQUIDA16 TION.—Paragraph (1) of section 334(b) (relating to liquida17 tion of subsidiary) is amended to read as follows: 

18 ‘‘(1) IN GENERAL.—If property is received by a 

19 corporate distributee in a distribution in a complete 

20 liquidation to which section 332 applies (or in a 

21 transfer described in section 337(b)(1)), the basis of 

22 such property in the hands of such distributee shall 

23 be the same as it would be in the hands of the trans24 feror; except that the basis of such property in the 
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1 hands of such distributee shall be the fair market 

2 value of the property at the time of the distribution— 

3 ‘‘(A) in any case in which gain or loss is 

4 recognized by the liquidating corporation with 

5 respect to such property, or 

6 ‘‘(B) in any case in which the liquidating 

7 corporation is a foreign corporation, the cor8 porate distributee is a domestic corporation, and 

9 the corporate distributee’s aggregate adjusted 

10 bases of property described in section 

11 362(e)(1)(B) which is distributed in such liq12 uidation would (but for this subparagraph) ex13 ceed the fair market value of such property im14 mediately after such liquidation.’’. 

15 (c) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to transactions after February 13, 2003. 

17 SEC. 5642. NO REDUCTION OF BASIS UNDER SECTION 734 IN 

18 STOCK HELD BY PARTNERSHIP IN COR19 PORATE PARTNER. 

20 (a) IN GENERAL.—Section 755 is amended by adding 

21 at the end the following new subsection: 

22 ‘‘(c) NO ALLOCATION OF BASIS DECREASE TO STOCK

23 OF CORPORATE PARTNER.—In making an allocation under 

24 subsection (a) of any decrease in the adjusted basis of part25 nership property under section 734(b)— 
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1 ‘‘(1) no allocation may be made to stock in a 

2 corporation (or any person which is related (within 

3 the meaning of section 267(b) or 707(b)(1)) to such 

4 corporation) which is a partner in the partnership, 

5 and 

6 ‘‘(2) any amount not allocable to stock by reason 

7 of paragraph (1) shall be allocated under subsection 

8 (a) to other partnership property in such manner as 

9 the Secretary may prescribe. 

10 Gain shall be recognized to the partnership to the extent 

11 that the amount required to be allocated under paragraph 

12 (2) to other partnership property exceeds the aggregate ad13 justed basis of such other property immediately before the 

14 allocation required by paragraph (2).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall apply to distributions after February 13, 2003. 

17 SEC. 5643. REPEAL OF SPECIAL RULES FOR FASITS. 

18 (a) IN GENERAL.—Part V of subchapter M of chapter 

19 1 (relating to financial asset securitization investment 

20 trusts) is hereby repealed. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Paragraph (6) of section 56(g) is amended by 

23 striking ‘‘REMIC, or FASIT’’ and inserting ‘‘or 

24 REMIC’’. 
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1 (2) Clause (ii) of section 382(l)(4)(B) is amended 

2 by striking ‘‘a REMIC to which part IV of subchapter 

3 M applies, or a FASIT to which part V of subchapter 

4 M applies,’’ and inserting ‘‘or a REMIC to which 

5 part IV of subchapter M applies,’’. 

6 (3) Paragraph (1) of section 582(c) is amended 

7 by striking ‘‘, and any regular interest in a FASIT,’’. 

8 (4) Subparagraph (E) of section 856(c)(5) is 

9 amended by striking the last sentence. 

10 (5)(A) Section 860G(a)(1) is amended by adding 

11 at the end the following new sentence: ‘‘An interest 

12 shall not fail to qualify as a regular interest solely be13 cause the specified principal amount of the regular 

14 interest (or the amount of interest accrued on the reg15 ular interest) can be reduced as a result of the non16 occurrence of 1 or more contingent payments with re17 spect to any reverse mortgage loan held by the 

18 REMIC if, on the startup day for the REMIC, the 

19 sponsor reasonably believes that all principal and in20 terest due under the regular interest will be paid at 

21 or prior to the liquidation of the REMIC.’’. 

22 (B) The last sentence of section 860G(a)(3) is 

23 amended by inserting ‘‘, and any reverse mortgage 

24 loan (and each balance increase on such loan meeting 

25 the requirements of subparagraph (A)(iii)) shall be 
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1 treated as an obligation secured by an interest in real 

2 property’’ before the period at the end. 

3 (6) Paragraph (3) of section 860G(a) is amended 

4 by adding ‘‘and’’ at the end of subparagraph (B), by 

5 striking ‘‘, and’’ at the end of subparagraph (C) and 

6 inserting a period, and by striking subparagraph (D). 

7 (7) Section 860G(a)(3), as amended by para8 graph (6), is amended by adding at the end the fol9 lowing new sentence: ‘‘For purposes of subparagraph 

10 (A), if more than 50 percent of the obligations trans11 ferred to, or purchased by, the REMIC are originated 

12 by the United States or any State (or any political 

13 subdivision, agency, or instrumentality of the United 

14 States or any State) and are principally secured by 

15 an interest in real property, then each obligation 

16 transferred to, or purchased by, the REMIC shall be 

17 treated as secured by an interest in real property.’’. 

18 (8)(A) Section 860G(a)(3)(A) is amended by 

19 striking ‘‘or’’ at the end of clause (i), by inserting 

20 ‘‘or’’ at the end of clause (ii), and by inserting after 

21 clause (ii) the following new clause: 

22 ‘‘(iii) represents an increase in the 

23 principal amount under the original terms 

24 of an obligation described in clause (i) or 

25 (ii) if such increase— 
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1 ‘‘(I) is attributable to an advance 

2 made to the obligor pursuant to the 

3 original terms of the obligation, 

4 ‘‘(II) occurs after the startup day, 

5 and 

6 ‘‘(III) is purchased by the REMIC 

7 pursuant to a fixed price contract in 

8 effect on the startup day.’’. 

9 (B) Section 860G(a)(7)(B) is amended to read as 

10 follows: 

11 ‘‘(B) QUALIFIED RESERVE FUND.—For pur12 poses of subparagraph (A), the term ‘qualified 

13 reserve fund’ means any reasonably required re14 serve to— 

15 ‘‘(i) provide for full payment of ex16 penses of the REMIC or amounts due on 

17 regular interests in the event of defaults on 

18 qualified mortgages or lower than expected 

19 returns on cash flow investments, or 

20 ‘‘(ii) provide a source of funds for the 

21 purchase of obligations described in clause 

22 (ii) or (iii) of paragraph (3)(A). 

23 The aggregate fair market value of the assets held 

24 in any such reserve shall not exceed 50 percent 

25 of the aggregate fair market value of all of the 
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1 assets of the REMIC on the startup day, and the 

2 amount of any such reserve shall be promptly 

3 and appropriately reduced to the extent the 

4 amount held in such reserve is no longer reason5 ably required for purposes specified in clause (i) 

6 or (ii) of paragraph (3)(A).’’. 

7 (9) Subparagraph (C) of section 1202(e)(4) is 

8 amended by striking ‘‘REMIC, or FASIT’’ and in9 serting ‘‘or REMIC’’. 

10 (10) Clause (xi) of section 7701(a)(19)(C) is 

11 amended— 

12 (A) by striking ‘‘and any regular interest in 

13 a FASIT,’’, and 

14 (B) by striking ‘‘or FASIT’’ each place it 

15 appears. 

16 (11) The table of parts for subchapter M of chap17 ter 1 is amended by striking the item relating to part 

18 V. 

19 (c) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall 

22 take effect on February 14, 2003. 

23 (2) EXCEPTION FOR EXISTING FASITS.—Para24 graph (1) shall not apply to any FASIT in existence 

25 on the date of the enactment of this Act to the extent 
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1 that regular interests issued by the FASIT before such 

2 date continue to remain outstanding in accordance 

3 with the original terms of issuance. 

4 SEC. 5644. EXPANDED DISALLOWANCE OF DEDUCTION FOR 

5 INTEREST ON CONVERTIBLE DEBT. 

6 (a) IN GENERAL.—Paragraph (2) of section 163(l) is 

7 amended by striking ‘‘or a related party’’ and inserting ‘‘or 

8 equity held by the issuer (or any related party) in any other 

9 person’’. 

10 (b) CAPITALIZATION ALLOWED WITH RESPECT TO EQ11 UITY OF PERSONS OTHER THAN ISSUER AND RELATED

12 PARTIES.—Section 163(l) is amended by redesignating 

13 paragraphs (4) and (5) as paragraphs (5) and (6) and by 

14 inserting after paragraph (3) the following new paragraph: 

15 ‘‘(4) CAPITALIZATION ALLOWED WITH RESPECT

16 TO EQUITY OF PERSONS OTHER THAN ISSUER AND

17 RELATED PARTIES.—If the disqualified debt instru18 ment of a corporation is payable in equity held by the 

19 issuer (or any related party) in any other person 

20 (other than a related party), the basis of such equity 

21 shall be increased by the amount not allowed as a de22 duction by reason of paragraph (1) with respect to 

23 the instrument.’’. 

24 (c) EXCEPTION FOR CERTAIN INSTRUMENTS ISSUED

25 BY DEALERS IN SECURITIES.—Section 163(l), as amended 
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1 by subsection (b), is amended by redesignating paragraphs 

2 (5) and (6) as paragraphs (6) and (7) and by inserting 

3 after paragraph (4) the following new paragraph: 

4 ‘‘(5) EXCEPTION FOR CERTAIN INSTRUMENTS

5 ISSUED BY DEALERS IN SECURITIES.—For purposes 

6 of this subsection, the term ‘disqualified debt instru7 ment’ does not include indebtedness issued by a dealer 

8 in securities (or a related party) which is payable in, 

9 or by reference to, equity (other than equity of the 

10 issuer or a related party) held by such dealer in its 

11 capacity as a dealer in securities. For purposes of 

12 this paragraph, the term ‘dealer in securities’ has the 

13 meaning given such term by section 475.’’. 

14 (c) CONFORMING AMENDMENTS.—Paragraph (3) of 

15 section 163(l) is amended— 

16 (1) by striking ‘‘or a related party’’ in the mate17 rial preceding subparagraph (A) and inserting ‘‘or 

18 any other person’’, and 

19 (2) by striking ‘‘or interest’’ each place it ap20 pears. 

21 (d) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to debt instruments issued after Feb23 ruary 13, 2003. 
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1 SEC. 5645. EXPANDED AUTHORITY TO DISALLOW TAX BENE2 FITS UNDER SECTION 269. 

3 (a) IN GENERAL.—Subsection (a) of section 269 (relat4 ing to acquisitions made to evade or avoid income tax) is 

5 amended to read as follows: 

6 ‘‘(a) IN GENERAL.—If— 

7 ‘‘(1)(A) any person or persons acquire, directly 

8 or indirectly, control of a corporation, or 

9 ‘‘(B) any corporation acquires, directly or indi10 rectly, property of another corporation and the basis 

11 of such property, in the hands of the acquiring cor12 poration, is determined by reference to the basis in 

13 the hands of the transferor corporation, and 

14 ‘‘(2) the principal purpose for which such acqui15 sition was made is evasion or avoidance of Federal 

16 income tax, 

17 then the Secretary may disallow such deduction, credit, or 

18 other allowance. For purposes of paragraph (1)(A), control 

19 means the ownership of stock possessing at least 50 percent 

20 of the total combined voting power of all classes of stock 

21 entitled to vote or at least 50 percent of the total value of 

22 all shares of all classes of stock of the corporation.’’. 

23 (b) EFFECTIVE DATE.—The amendment made by this 

24 section shall apply to stock and property acquired after 

25 February 13, 2003. 
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1 SEC. 5646. MODIFICATION OF INTERACTION BETWEEN SUB2 PART F AND PASSIVE FOREIGN INVESTMENT 

3 COMPANY RULES. 

4 (a) LIMITATION ON EXCEPTION FROM PFIC RULES

5 FOR UNITED STATES SHAREHOLDERS OF CONTROLLED

6 FOREIGN CORPORATIONS.—Paragraph (2) of section 

7 1297(e) (relating to passive foreign investment company) 

8 is amended by adding at the end the following flush sen9 tence: 

10 ‘‘Such term shall not include any period if the 

11 earning of subpart F income by such corporation 

12 during such period would result in only a remote 

13 likelihood of an inclusion in gross income under 

14 section 951(a)(1)(A)(i).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall apply to taxable years of controlled foreign cor17 porations beginning after February 13, 2003, and to tax18 able years of United States shareholders with or within 

19 which such taxable years of controlled foreign corporations 

20 end. 
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1 PART V—PROVISIONS TO DISCOURAGE 

2 EXPATRIATION 

3 SEC. 5651. TAX TREATMENT OF INVERTED CORPORATE EN4 TITIES. 

5 (a) IN GENERAL.—Subchapter C of chapter 80 (relat6 ing to provisions affecting more than one subtitle) is 

7 amended by adding at the end the following new section: 

8 ‘‘SEC. 7874. RULES RELATING TO INVERTED CORPORATE 

9 ENTITIES. 

10 ‘‘(a) INVERTED CORPORATIONS TREATED AS DOMES11 TIC CORPORATIONS.— 

12 ‘‘(1) IN GENERAL.—If a foreign incorporated en13 tity is treated as an inverted domestic corporation, 

14 then, notwithstanding section 7701(a)(4), such entity 

15 shall be treated for purposes of this title as a domestic 

16 corporation. 

17 ‘‘(2) INVERTED DOMESTIC CORPORATION.—For 

18 purposes of this section, a foreign incorporated entity 

19 shall be treated as an inverted domestic corporation 

20 if, pursuant to a plan (or a series of related trans21 actions)— 

22 ‘‘(A) the entity completes after March 20, 

23 2002, the direct or indirect acquisition of sub24 stantially all of the properties held directly or 

25 indirectly by a domestic corporation or substan-
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1 tially all of the properties constituting a trade or 

2 business of a domestic partnership, 

3 ‘‘(B) after the acquisition at least 80 per4 cent of the stock (by vote or value) of the entity 

5 is held— 

6 ‘‘(i) in the case of an acquisition with 

7 respect to a domestic corporation, by former 

8 shareholders of the domestic corporation by 

9 reason of holding stock in the domestic cor10 poration, or 

11 ‘‘(ii) in the case of an acquisition with 

12 respect to a domestic partnership, by former 

13 partners of the domestic partnership by rea14 son of holding a capital or profits interest 

15 in the domestic partnership, and 

16 ‘‘(C) the expanded affiliated group which 

17 after the acquisition includes the entity does not 

18 have substantial business activities in the foreign 

19 country in which or under the law of which the 

20 entity is created or organized when compared to 

21 the total business activities of such expanded af22 filiated group. 

23 Except as provided in regulations, an acquisition of 

24 properties of a domestic corporation shall not be 

25 treated as described in subparagraph (A) if none of 
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1 the corporation’s stock was readily tradeable on an es2 tablished securities market at any time during the 4- 

3 year period ending on the date of the acquisition. 

4 ‘‘(b) PRESERVATION OF DOMESTIC TAX BASE IN CER5 TAIN INVERSION TRANSACTIONS TO WHICH SUBSECTION

6 (a) DOES NOT APPLY.— 

7 ‘‘(1) IN GENERAL.—If a foreign incorporated en8 tity would be treated as an inverted domestic corpora9 tion with respect to an acquired entity if either— 

10 ‘‘(A) subsection (a)(2)(A) were applied by 

11 substituting ‘after December 31, 1996, and on or 

12 before March 20, 2002’ for ‘after March 20, 2002’ 

13 and subsection (a)(2)(B) were applied by sub14 stituting ‘more than 50 percent’ for ‘at least 80 

15 percent’, or 

16 ‘‘(B) subsection (a)(2)(B) were applied by 

17 substituting ‘more than 50 percent’ for ‘at least 

18 80 percent’, 

19 then the rules of subsection (c) shall apply to any in20 version gain of the acquired entity during the appli21 cable period and the rules of subsection (d) shall 

22 apply to any related party transaction of the ac23 quired entity during the applicable period. This sub24 section shall not apply for any taxable year if sub-
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1 section (a) applies to such foreign incorporated entity 

2 for such taxable year. 

3 ‘‘(2) ACQUIRED ENTITY.—For purposes of this 

4 section— 

5 ‘‘(A) IN GENERAL.—The term ‘acquired en6 tity’ means the domestic corporation or partner7 ship substantially all of the properties of which 

8 are directly or indirectly acquired in an acquisi9 tion described in subsection (a)(2)(A) to which 

10 this subsection applies. 

11 ‘‘(B) AGGREGATION RULES.—Any domestic 

12 person bearing a relationship described in sec13 tion 267(b) or 707(b) to an acquired entity shall 

14 be treated as an acquired entity with respect to 

15 the acquisition described in subparagraph (A). 

16 ‘‘(3) APPLICABLE PERIOD.—For purposes of this 

17 section— 

18 ‘‘(A) IN GENERAL.—The term ‘applicable 

19 period’ means the period— 

20 ‘‘(i) beginning on the first date prop21 erties are acquired as part of the acquisi22 tion described in subsection (a)(2)(A) to 

23 which this subsection applies, and 
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1 ‘‘(ii) ending on the date which is 10 

2 years after the last date properties are ac3 quired as part of such acquisition. 

4 ‘‘(B) SPECIAL RULE FOR INVERSIONS OC5 CURRING BEFORE MARCH 21, 2002.—In the case 

6 of any acquired entity to which paragraph 

7 (1)(A) applies, the applicable period shall be the 

8 10-year period beginning on January 1, 2003. 

9 ‘‘(c) TAX ON INVERSION GAINS MAY NOT BE OFF10 SET.—If subsection (b) applies— 

11 ‘‘(1) IN GENERAL.—The taxable income of an ac12 quired entity (or any expanded affiliated group which 

13 includes such entity) for any taxable year which in14 cludes any portion of the applicable period shall in 

15 no event be less than the inversion gain of the entity 

16 for the taxable year. 

17 ‘‘(2) CREDITS NOT ALLOWED AGAINST TAX ON IN18 VERSION GAIN.—Credits shall be allowed against the 

19 tax imposed by this chapter on an acquired entity for 

20 any taxable year described in paragraph (1) only to 

21 the extent such tax exceeds the product of— 

22 ‘‘(A) the amount of the inversion gain for 

23 the taxable year, and 

24 ‘‘(B) the highest rate of tax specified in sec25 tion 11(b)(1). 
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1 For purposes of determining the credit allowed by sec2 tion 901 inversion gain shall be treated as from 

3 sources within the United States. 

4 ‘‘(3) SPECIAL RULES FOR PARTNERSHIPS.—In 

5 the case of an acquired entity which is a partner6 ship— 

7 ‘‘(A) the limitations of this subsection shall 

8 apply at the partner rather than the partnership 

9 level, 

10 ‘‘(B) the inversion gain of any partner for 

11 any taxable year shall be equal to the sum of— 

12 ‘‘(i) the partner’s distributive share of 

13 inversion gain of the partnership for such 

14 taxable year, plus 

15 ‘‘(ii) income or gain required to be rec16 ognized for the taxable year by the partner 

17 under section 367(a), 741, or 1001, or 

18 under any other provision of chapter 1, by 

19 reason of the transfer during the applicable 

20 period of any partnership interest of the 

21 partner in such partnership to the foreign 

22 incorporated entity, and 

23 ‘‘(C) the highest rate of tax specified in the 

24 rate schedule applicable to the partner under 
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1 chapter 1 shall be substituted for the rate of tax 

2 under paragraph (2)(B). 

3 ‘‘(4) INVERSION GAIN.—For purposes of this sec4 tion, the term ‘inversion gain’ means any income or 

5 gain required to be recognized under section 304, 

6 311(b), 367, 1001, or 1248, or under any other provi7 sion of chapter 1, by reason of the transfer during the 

8 applicable period of stock or other properties by an 

9 acquired entity— 

10 ‘‘(A) as part of the acquisition described in 

11 subsection (a)(2)(A) to which subsection (b) ap12 plies, or 

13 ‘‘(B) after such acquisition to a foreign re14 lated person. 

15 The Secretary may provide that income or gain from 

16 the sale of inventories or other transactions in the or17 dinary course of a trade or business shall not be treat18 ed as inversion gain under subparagraph (B) to the 

19 extent the Secretary determines such treatment would 

20 not be inconsistent with the purposes of this section. 

21 ‘‘(5) COORDINATION WITH SECTION 172 AND MIN22 IMUM TAX.—Rules similar to the rules of paragraphs 

23 (3) and (4) of section 860E(a) shall apply for pur24 poses of this section. 

25 ‘‘(6) STATUTE OF LIMITATIONS.— 
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1 ‘‘(A) IN GENERAL.—The statutory period 

2 for the assessment of any deficiency attributable 

3 to the inversion gain of any taxpayer for any 

4 pre-inversion year shall not expire before the ex5 piration of 3 years from the date the Secretary 

6 is notified by the taxpayer (in such manner as 

7 the Secretary may prescribe) of the acquisition 

8 described in subsection (a)(2)(A) to which such 

9 gain relates and such deficiency may be assessed 

10 before the expiration of such 3-year period not11 withstanding the provisions of any other law or 

12 rule of law which would otherwise prevent such 

13 assessment. 

14 ‘‘(B) PRE-INVERSION YEAR.—For purposes 

15 of subparagraph (A), the term ‘pre-inversion 

16 year’ means any taxable year if— 

17 ‘‘(i) any portion of the applicable pe18 riod is included in such taxable year, and 

19 ‘‘(ii) such year ends before the taxable 

20 year in which the acquisition described in 

21 subsection (a)(2)(A) is completed. 

22 ‘‘(d) SPECIAL RULES APPLICABLE TO ACQUIRED EN23 TITIES TO WHICH SUBSECTION (B) APPLIES.— 
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1 ‘‘(1) INCREASES IN ACCURACY-RELATED PEN2 ALTIES.—In the case of any underpayment of tax of 

3 an acquired entity to which subsection (b) applies— 

4 ‘‘(A) section 6662(a) shall be applied with 

5 respect to such underpayment by substituting ‘30 

6 percent’ for ‘20 percent’, and 

7 ‘‘(B) if such underpayment is attributable 

8 to one or more gross valuation understatements, 

9 the increase in the rate of penalty under section 

10 6662(h) shall be to 50 percent rather than 40 

11 percent. 

12 ‘‘(2) MODIFICATIONS OF LIMITATION ON INTER13 EST DEDUCTION.—In the case of an acquired entity 

14 to which subsection (b) applies, section 163(j) shall be 

15 applied— 

16 ‘‘(A) without regard to paragraph (2)(A)(ii) 

17 thereof, and 

18 ‘‘(B) by substituting ‘25 percent’ for ‘50 

19 percent’ each place it appears in paragraph 

20 (2)(B) thereof. 

21 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.—For 

22 purposes of this section— 

23 ‘‘(1) RULES FOR APPLICATION OF SUBSECTION

24 (a)(2).—In applying subsection (a)(2) for purposes of 
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1 subsections (a) and (b), the following rules shall 

2 apply: 

3 ‘‘(A) CERTAIN STOCK DISREGARDED.— 

4 There shall not be taken into account in deter5 mining ownership for purposes of subsection 

6 (a)(2)(B)— 

7 ‘‘(i) stock held by members of the ex8 panded affiliated group which includes the 

9 foreign incorporated entity, or 

10 ‘‘(ii) stock of such entity which is sold 

11 in a public offering or private placement re12 lated to the acquisition described in sub13 section (a)(2)(A). 

14 ‘‘(B) PLAN DEEMED IN CERTAIN CASES.—If 

15 a foreign incorporated entity acquires directly or 

16 indirectly substantially all of the properties of a 

17 domestic corporation or partnership during the 

18 4-year period beginning on the date which is 2 

19 years before the ownership requirements of sub20 section (a)(2)(B) are met with respect to such do21 mestic corporation or partnership, such actions 

22 shall be treated as pursuant to a plan. 

23 ‘‘(C) CERTAIN TRANSFERS DISREGARDED.— 

24 The transfer of properties or liabilities (includ25 ing by contribution or distribution) shall be dis-
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1 regarded if such transfers are part of a plan a 

2 principal purpose of which is to avoid the pur3 poses of this section. 

4 ‘‘(D) SPECIAL RULE FOR RELATED PART5 NERSHIPS.—For purposes of applying subsection 

6 (a)(2) to the acquisition of a domestic partner7 ship, except as provided in regulations, all part8 nerships which are under common control (with9 in the meaning of section 482) shall be treated 

10 as 1 partnership. 

11 ‘‘(E) TREATMENT OF CERTAIN RIGHTS.— 

12 The Secretary shall prescribe such regulations as 

13 may be necessary— 

14 ‘‘(i) to treat warrants, options, con15 tracts to acquire stock, convertible debt in16 struments, and other similar interests as 

17 stock, and 

18 ‘‘(ii) to treat stock as not stock. 

19 ‘‘(2) EXPANDED AFFILIATED GROUP.—The term 

20 ‘expanded affiliated group’ means an affiliated group 

21 as defined in section 1504(a) but without regard to 

22 section 1504(b)(3), except that section 1504(a) shall 

23 be applied by substituting ‘more than 50 percent’ for 

24 ‘at least 80 percent’ each place it appears. 
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1 ‘‘(3) FOREIGN INCORPORATED ENTITY.—The 

2 term ‘foreign incorporated entity’ means any entity 

3 which is, or but for subsection (a)(1) would be, treated 

4 as a foreign corporation for purposes of this title. 

5 ‘‘(4) FOREIGN RELATED PERSON.—The term ‘for6 eign related person’ means, with respect to any ac7 quired entity, a foreign person which— 

8 ‘‘(A) bears a relationship to such entity de9 scribed in section 267(b) or 707(b), or 

10 ‘‘(B) is under the same common control 

11 (within the meaning of section 482) as such enti12 ty. 

13 ‘‘(5) SUBSEQUENT ACQUISITIONS BY UNRELATED

14 DOMESTIC CORPORATIONS.— 

15 ‘‘(A) IN GENERAL.—Subject to such condi16 tions, limitations, and exceptions as the Sec17 retary may prescribe, if, after an acquisition de18 scribed in subsection (a)(2)(A) to which sub19 section (b) applies, a domestic corporation stock 

20 of which is traded on an established securities 

21 market acquires directly or indirectly any prop22 erties of one or more acquired entities in a 

23 transaction with respect to which the require24 ments of subparagraph (B) are met, this section 
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1 shall cease to apply to any such acquired entity 

2 with respect to which such requirements are met. 

3 ‘‘(B) REQUIREMENTS.—The requirements of 

4 the subparagraph are met with respect to a 

5 transaction involving any acquisition described 

6 in subparagraph (A) if— 

7 ‘‘(i) before such transaction the domes8 tic corporation did not have a relationship 

9 described in section 267(b) or 707(b), and 

10 was not under common control (within the 

11 meaning of section 482), with the acquired 

12 entity, or any member of an expanded af13 filiated group including such entity, and 

14 ‘‘(ii) after such transaction, such ac15 quired entity— 

16 ‘‘(I) is a member of the same ex17 panded affiliated group which includes 

18 the domestic corporation or has such a 

19 relationship or is under such common 

20 control with any member of such 

21 group, and 

22 ‘‘(II) is not a member of, and does 

23 not have such a relationship and is not 

24 under such common control with any 

25 member of, the expanded affiliated 
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1 group which before such acquisition in2 cluded such entity. 

3 ‘‘(f) REGULATIONS.—The Secretary shall provide such 

4 regulations as are necessary to carry out this section, in5 cluding regulations providing for such adjustments to the 

6 application of this section as are necessary to prevent the 

7 avoidance of the purposes of this section, including the 

8 avoidance of such purposes through— 

9 ‘‘(1) the use of related persons, pass-thru or other 

10 noncorporate entities, or other intermediaries, or 

11 ‘‘(2) transactions designed to have persons cease 

12 to be (or not become) members of expanded affiliated 

13 groups or related persons.’’. 

14 (b) INFORMATION REPORTING.—The Secretary of the 

15 Treasury shall exercise the Secretary’s authority under the 

16 Internal Revenue Code of 1986 to require entities involved 

17 in transactions to which section 7874 of such Code (as 

18 added by subsection (a)) applies to report to the Secretary, 

19 shareholders, partners, and such other persons as the Sec20 retary may prescribe such information as is necessary to 

21 ensure the proper tax treatment of such transactions. 

22 (c) CONFORMING AMENDMENT.—The table of sections 

23 for subchapter C of chapter 80 is amended by adding at 

24 the end the following new item: 

‘‘Sec. 7874. Rules relating to inverted corporate entities.’’. 
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1 (d) TRANSITION RULE FOR CERTAIN REGULATED IN2 VESTMENT COMPANIES AND UNIT INVESTMENT TRUSTS.— 

3 Notwithstanding section 7874 of the Internal Revenue Code 

4 of 1986 (as added by subsection (a)), a regulated investment 

5 company, or other pooled fund or trust specified by the Sec6 retary of the Treasury, may elect to recognize gain by rea7 son of section 367(a) of such Code with respect to a trans8 action under which a foreign incorporated entity is treated 

9 as an inverted domestic corporation under section 7874(a) 

10 of such Code by reason of an acquisition completed after 

11 March 20, 2002, and before January 1, 2004. 

12 SEC. 5652. IMPOSITION OF MARK-TO-MARKET TAX ON INDI13 VIDUALS WHO EXPATRIATE. 

14 (a) IN GENERAL.—Subpart A of part II of subchapter 

15 N of chapter 1 is amended by inserting after section 877 

16 the following new section: 

17 ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION. 

18 ‘‘(a) GENERAL RULES.—For purposes of this sub19 title— 

20 ‘‘(1) MARK TO MARKET.—Except as provided in 

21 subsections (d) and (f), all property of a covered expa22 triate to whom this section applies shall be treated as 

23 sold on the day before the expatriation date for its 

24 fair market value. 
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1 ‘‘(2) RECOGNITION OF GAIN OR LOSS.—In the 

2 case of any sale under paragraph (1)— 

3 ‘‘(A) notwithstanding any other provision of 

4 this title, any gain arising from such sale shall 

5 be taken into account for the taxable year of the 

6 sale, and 

7 ‘‘(B) any loss arising from such sale shall 

8 be taken into account for the taxable year of the 

9 sale to the extent otherwise provided by this title, 

10 except that section 1091 shall not apply to any 

11 such loss. 

12 Proper adjustment shall be made in the amount of 

13 any gain or loss subsequently realized for gain or loss 

14 taken into account under the preceding sentence. 

15 ‘‘(3) EXCLUSION FOR CERTAIN GAIN.— 

16 ‘‘(A) IN GENERAL.—The amount which, but 

17 for this paragraph, would be includible in the 

18 gross income of any individual by reason of this 

19 section shall be reduced (but not below zero) by 

20 $600,000. For purposes of this paragraph, allo21 cable expatriation gain taken into account under 

22 subsection (f)(2) shall be treated in the same 

23 manner as an amount required to be includible 

24 in gross income. 

25 ‘‘(B) COST-OF-LIVING ADJUSTMENT.— 
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1 ‘‘(i) IN GENERAL.—In the case of an 

2 expatriation date occurring in any calendar 

3 year after 2004, the $600,000 amount under 

4 subparagraph (A) shall be increased by an 

5 amount equal to— 

6 ‘‘(I) such dollar amount, multi7 plied by 

8 ‘‘(II) the cost-of-living adjustment 

9 determined under section 1(f)(3) for 

10 such calendar year, determined by sub11 stituting ‘calendar year 2003’ for ‘cal12 endar year 1992’ in subparagraph (B) 

13 thereof. 

14 ‘‘(ii) ROUNDING RULES.—If any 

15 amount after adjustment under clause (i) is 

16 not a multiple of $1,000, such amount shall 

17 be rounded to the next lower multiple of 

18 $1,000. 

19 ‘‘(4) ELECTION TO CONTINUE TO BE TAXED AS

20 UNITED STATES CITIZEN.— 

21 ‘‘(A) IN GENERAL.—If a covered expatriate 

22 elects the application of this paragraph— 

23 ‘‘(i) this section (other than this para24 graph and subsection (i)) shall not apply to 

25 the expatriate, but 
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1 ‘‘(ii) in the case of property to which 

2 this section would apply but for such elec3 tion, the expatriate shall be subject to tax 

4 under this title in the same manner as if 

5 the individual were a United States citizen. 

6 ‘‘(B) REQUIREMENTS.—Subparagraph (A) 

7 shall not apply to an individual unless the indi8 vidual— 

9 ‘‘(i) provides security for payment of 

10 tax in such form and manner, and in such 

11 amount, as the Secretary may require, 

12 ‘‘(ii) consents to the waiver of any 

13 right of the individual under any treaty of 

14 the United States which would preclude as15 sessment or collection of any tax which may 

16 be imposed by reason of this paragraph, 

17 and 

18 ‘‘(iii) complies with such other require19 ments as the Secretary may prescribe. 

20 ‘‘(C) ELECTION.—An election under sub21 paragraph (A) shall apply to all property to 

22 which this section would apply but for the elec23 tion and, once made, shall be irrevocable. Such 

24 election shall also apply to property the basis of 

25 which is determined in whole or in part by ref-
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1 erence to the property with respect to which the 

2 election was made. 

3 ‘‘(b) ELECTION TO DEFER TAX.— 

4 ‘‘(1) IN GENERAL.—If the taxpayer elects the ap5 plication of this subsection with respect to any prop6 erty treated as sold by reason of subsection (a), the 

7 payment of the additional tax attributable to such 

8 property shall be postponed until the due date of the 

9 return for the taxable year in which such property is 

10 disposed of (or, in the case of property disposed of in 

11 a transaction in which gain is not recognized in 

12 whole or in part, until such other date as the Sec13 retary may prescribe). 

14 ‘‘(2) DETERMINATION OF TAX WITH RESPECT TO

15 PROPERTY.—For purposes of paragraph (1), the addi16 tional tax attributable to any property is an amount 

17 which bears the same ratio to the additional tax im18 posed by this chapter for the taxable year solely by 

19 reason of subsection (a) as the gain taken into ac20 count under subsection (a) with respect to such prop21 erty bears to the total gain taken into account under 

22 subsection (a) with respect to all property to which 

23 subsection (a) applies. 

24 ‘‘(3) TERMINATION OF POSTPONEMENT.—No tax 

25 may be postponed under this subsection later than the 
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1 due date for the return of tax imposed by this chapter 

2 for the taxable year which includes the date of death 

3 of the expatriate (or, if earlier, the time that the secu4 rity provided with respect to the property fails to 

5 meet the requirements of paragraph (4), unless the 

6 taxpayer corrects such failure within the time speci7 fied by the Secretary). 

8 ‘‘(4) SECURITY.— 

9 ‘‘(A) IN GENERAL.—No election may be 

10 made under paragraph (1) with respect to any 

11 property unless adequate security is provided to 

12 the Secretary with respect to such property. 

13 ‘‘(B) ADEQUATE SECURITY.—For purposes 

14 of subparagraph (A), security with respect to 

15 any property shall be treated as adequate secu16 rity if— 

17 ‘‘(i) it is a bond in an amount equal 

18 to the deferred tax amount under paragraph 

19 (2) for the property, or 

20 ‘‘(ii) the taxpayer otherwise establishes 

21 to the satisfaction of the Secretary that the 

22 security is adequate. 

23 ‘‘(5) WAIVER OF CERTAIN RIGHTS.—No election 

24 may be made under paragraph (1) unless the tax25 payer consents to the waiver of any right under any 
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1 treaty of the United States which would preclude as2 sessment or collection of any tax imposed by reason 

3 of this section. 

4 ‘‘(6) ELECTIONS.—An election under paragraph 

5 (1) shall only apply to property described in the elec6 tion and, once made, is irrevocable. An election may 

7 be made under paragraph (1) with respect to an in8 terest in a trust with respect to which gain is re9 quired to be recognized under subsection (f)(1). 

10 ‘‘(7) INTEREST.—For purposes of section 6601— 

11 ‘‘(A) the last date for the payment of tax 

12 shall be determined without regard to the election 

13 under this subsection, and 

14 ‘‘(B) section 6621(a)(2) shall be applied by 

15 substituting ‘5 percentage points’ for ‘3 percent16 age points’ in subparagraph (B) thereof. 

17 ‘‘(c) COVERED EXPATRIATE.—For purposes of this sec18 tion— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the term ‘covered expatriate’ means an ex21 patriate. 

22 ‘‘(2) EXCEPTIONS.—An individual shall not be 

23 treated as a covered expatriate if— 

24 ‘‘(A) the individual— 
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1 ‘‘(i) became at birth a citizen of the 

2 United States and a citizen of another 

3 country and, as of the expatriation date, 

4 continues to be a citizen of, and is taxed as 

5 a resident of, such other country, and 

6 ‘‘(ii) has not been a resident of the 

7 United States (as defined in section 

8 7701(b)(1)(A)(ii)) during the 5 taxable 

9 years ending with the taxable year during 

10 which the expatriation date occurs, or 

11 ‘‘(B)(i) the individual’s relinquishment of 

12 United States citizenship occurs before such individual attains age 181 13 ⁄2, and 

14 ‘‘(ii) the individual has been a resident of 

15 the United States (as so defined) for not more 

16 than 5 taxable years before the date of relin17 quishment. 

18 ‘‘(d) EXEMPT PROPERTY; SPECIAL RULES FOR PEN19 SION PLANS.— 

20 ‘‘(1) EXEMPT PROPERTY.—This section shall not 

21 apply to the following: 

22 ‘‘(A) UNITED STATES REAL PROPERTY IN23 TERESTS.—Any United States real property in24 terest (as defined in section 897(c)(1)), other 

25 than stock of a United States real property hold-
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1 ing corporation which does not, on the day before 

2 the expatriation date, meet the requirements of 

3 section 897(c)(2). 

4 ‘‘(B) SPECIFIED PROPERTY.—Any property 

5 or interest in property not described in subpara6 graph (A) which the Secretary specifies in regu7 lations. 

8 ‘‘(2) SPECIAL RULES FOR CERTAIN RETIREMENT

9 PLANS.— 

10 ‘‘(A) IN GENERAL.—If a covered expatriate 

11 holds on the day before the expatriation date any 

12 interest in a retirement plan to which this para13 graph applies— 

14 ‘‘(i) such interest shall not be treated 

15 as sold for purposes of subsection (a)(1), but 

16 ‘‘(ii) an amount equal to the present 

17 value of the expatriate’s nonforfeitable ac18 crued benefit shall be treated as having been 

19 received by such individual on such date as 

20 a distribution under the plan. 

21 ‘‘(B) TREATMENT OF SUBSEQUENT DIS22 TRIBUTIONS.—In the case of any distribution on 

23 or after the expatriation date to or on behalf of 

24 the covered expatriate from a plan from which 

25 the expatriate was treated as receiving a dis-
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1 tribution under subparagraph (A), the amount 

2 otherwise includible in gross income by reason of 

3 the subsequent distribution shall be reduced by 

4 the excess of the amount includible in gross in5 come under subparagraph (A) over any portion 

6 of such amount to which this subparagraph pre7 viously applied. 

8 ‘‘(C) TREATMENT OF SUBSEQUENT DIS9 TRIBUTIONS BY PLAN.—For purposes of this title, 

10 a retirement plan to which this paragraph ap11 plies, and any person acting on the plan’s behalf, 

12 shall treat any subsequent distribution described 

13 in subparagraph (B) in the same manner as 

14 such distribution would be treated without re15 gard to this paragraph. 

16 ‘‘(D) APPLICABLE PLANS.—This paragraph 

17 shall apply to— 

18 ‘‘(i) any qualified retirement plan (as 

19 defined in section 4974(c)), 

20 ‘‘(ii) an eligible deferred compensation 

21 plan (as defined in section 457(b)) of an el22 igible employer described in section 

23 457(e)(1)(A), and 
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1 ‘‘(iii) to the extent provided in regula2 tions, any foreign pension plan or similar 

3 retirement arrangements or programs. 

4 ‘‘(e) DEFINITIONS.—For purposes of this section— 

5 ‘‘(1) EXPATRIATE.—The term ‘expatriate’ 

6 means— 

7 ‘‘(A) any United States citizen who relin8 quishes citizenship, and 

9 ‘‘(B) any long-term resident of the United 

10 States who— 

11 ‘‘(i) ceases to be a lawful permanent 

12 resident of the United States (within the 

13 meaning of section 7701(b)(6)), or 

14 ‘‘(ii) commences to be treated as a resi15 dent of a foreign country under the provi16 sions of a tax treaty between the United 

17 States and the foreign country and who 

18 does not waive the benefits of such treaty 

19 applicable to residents of the foreign coun20 try. 

21 ‘‘(2) EXPATRIATION DATE.—The term ‘expatria22 tion date’ means— 

23 ‘‘(A) the date an individual relinquishes 

24 United States citizenship, or 
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1 ‘‘(B) in the case of a long-term resident of 

2 the United States, the date of the event described 

3 in clause (i) or (ii) of paragraph (1)(B). 

4 ‘‘(3) RELINQUISHMENT OF CITIZENSHIP.—A cit5 izen shall be treated as relinquishing United States 

6 citizenship on the earliest of— 

7 ‘‘(A) the date the individual renounces such 

8 individual’s United States nationality before a 

9 diplomatic or consular officer of the United 

10 States pursuant to paragraph (5) of section 

11 349(a) of the Immigration and Nationality Act 

12 (8 U.S.C. 1481(a)(5)), 

13 ‘‘(B) the date the individual furnishes to the 

14 United States Department of State a signed 

15 statement of voluntary relinquishment of United 

16 States nationality confirming the performance of 

17 an act of expatriation specified in paragraph 

18 (1), (2), (3), or (4) of section 349(a) of the Im19 migration and Nationality Act (8 U.S.C. 

20 1481(a)(1)–(4)), 

21 ‘‘(C) the date the United States Department 

22 of State issues to the individual a certificate of 

23 loss of nationality, or 
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1 ‘‘(D) the date a court of the United States 

2 cancels a naturalized citizen’s certificate of natu3 ralization. 

4 Subparagraph (A) or (B) shall not apply to any in5 dividual unless the renunciation or voluntary relin6 quishment is subsequently approved by the issuance to 

7 the individual of a certificate of loss of nationality by 

8 the United States Department of State. 

9 ‘‘(4) LONG-TERM RESIDENT.—The term ‘long10 term resident’ has the meaning given to such term by 

11 section 877(e)(2). 

12 ‘‘(f) SPECIAL RULES APPLICABLE TO BENEFICIARIES’ 

13 INTERESTS IN TRUST.— 

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), if an individual is determined under para16 graph (3) to hold an interest in a trust on the day 

17 before the expatriation date— 

18 ‘‘(A) the individual shall not be treated as 

19 having sold such interest, 

20 ‘‘(B) such interest shall be treated as a sep21 arate share in the trust, and 

22 ‘‘(C)(i) such separate share shall be treated 

23 as a separate trust consisting of the assets allo24 cable to such share, 
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1 ‘‘(ii) the separate trust shall be treated as 

2 having sold its assets on the day before the expa3 triation date for their fair market value and as 

4 having distributed all of its assets to the indi5 vidual as of such time, and 

6 ‘‘(iii) the individual shall be treated as hav7 ing recontributed the assets to the separate trust. 

8 Subsection (a)(2) shall apply to any income, gain, or 

9 loss of the individual arising from a distribution de10 scribed in subparagraph (C)(ii). In determining the 

11 amount of such distribution, proper adjustments shall 

12 be made for liabilities of the trust allocable to an in13 dividual’s share in the trust. 

14 ‘‘(2) SPECIAL RULES FOR INTERESTS IN QUALI15 FIED TRUSTS.— 

16 ‘‘(A) IN GENERAL.—If the trust interest de17 scribed in paragraph (1) is an interest in a 

18 qualified trust— 

19 ‘‘(i) paragraph (1) and subsection (a) 

20 shall not apply, and 

21 ‘‘(ii) in addition to any other tax im22 posed by this title, there is hereby imposed 

23 on each distribution with respect to such in24 terest a tax in the amount determined 

25 under subparagraph (B). 
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1 ‘‘(B) AMOUNT OF TAX.—The amount of tax 

2 under subparagraph (A)(ii) shall be equal to the 

3 lesser of— 

4 ‘‘(i) the highest rate of tax imposed by 

5 section 1(e) for the taxable year which in6 cludes the day before the expatriation date, 

7 multiplied by the amount of the distribu8 tion, or 

9 ‘‘(ii) the balance in the deferred tax ac10 count immediately before the distribution 

11 determined without regard to any increases 

12 under subparagraph (C)(ii) after the 30th 

13 day preceding the distribution. 

14 ‘‘(C) DEFERRED TAX ACCOUNT.—For pur15 poses of subparagraph (B)(ii)— 

16 ‘‘(i) OPENING BALANCE.—The opening 

17 balance in a deferred tax account with re18 spect to any trust interest is an amount 

19 equal to the tax which would have been im20 posed on the allocable expatriation gain 

21 with respect to the trust interest if such 

22 gain had been included in gross income 

23 under subsection (a). 

24 ‘‘(ii) INCREASE FOR INTEREST.—The 

25 balance in the deferred tax account shall be 
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1 increased by the amount of interest deter2 mined (on the balance in the account at the 

3 time the interest accrues), for periods after 

4 the 90th day after the expatriation date, by 

5 using the rates and method applicable 

6 under section 6621 for underpayments of 

7 tax for such periods, except that section 

8 6621(a)(2) shall be applied by substituting 

9 ‘5 percentage points’ for ‘3 percentage 

10 points’ in subparagraph (B) thereof. 

11 ‘‘(iii) DECREASE FOR TAXES PRE12 VIOUSLY PAID.—The balance in the tax de13 ferred account shall be reduced— 

14 ‘‘(I) by the amount of taxes im15 posed by subparagraph (A) on any dis16 tribution to the person holding the 

17 trust interest, and 

18 ‘‘(II) in the case of a person hold19 ing a nonvested interest, to the extent 

20 provided in regulations, by the amount 

21 of taxes imposed by subparagraph (A) 

22 on distributions from the trust with re23 spect to nonvested interests not held by 

24 such person. 
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1 ‘‘(D) ALLOCABLE EXPATRIATION GAIN.—For 

2 purposes of this paragraph, the allocable expa3 triation gain with respect to any beneficiary’s 

4 interest in a trust is the amount of gain which 

5 would be allocable to such beneficiary’s vested 

6 and nonvested interests in the trust if the bene7 ficiary held directly all assets allocable to such 

8 interests. 

9 ‘‘(E) TAX DEDUCTED AND WITHHELD.— 

10 ‘‘(i) IN GENERAL.—The tax imposed by 

11 subparagraph (A)(ii) shall be deducted and 

12 withheld by the trustees from the distribu13 tion to which it relates. 

14 ‘‘(ii) EXCEPTION WHERE FAILURE TO

15 WAIVE TREATY RIGHTS.—If an amount may 

16 not be deducted and withheld under clause 

17 (i) by reason of the distributee failing to 

18 waive any treaty right with respect to such 

19 distribution— 

20 ‘‘(I) the tax imposed by subpara21 graph (A)(ii) shall be imposed on the 

22 trust and each trustee shall be person23 ally liable for the amount of such tax, 

24 and 
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1 ‘‘(II) any other beneficiary of the 

2 trust shall be entitled to recover from 

3 the distributee the amount of such tax 

4 imposed on the other beneficiary. 

5 ‘‘(F) DISPOSITION.—If a trust ceases to be 

6 a qualified trust at any time, a covered expa7 triate disposes of an interest in a qualified trust, 

8 or a covered expatriate holding an interest in a 

9 qualified trust dies, then, in lieu of the tax im10 posed by subparagraph (A)(ii), there is hereby 

11 imposed a tax equal to the lesser of— 

12 ‘‘(i) the tax determined under para13 graph (1) as if the day before the expatria14 tion date were the date of such cessation, 

15 disposition, or death, whichever is applica16 ble, or 

17 ‘‘(ii) the balance in the tax deferred ac18 count immediately before such date. 

19 Such tax shall be imposed on the trust and each 

20 trustee shall be personally liable for the amount 

21 of such tax and any other beneficiary of the trust 

22 shall be entitled to recover from the covered expa23 triate or the estate the amount of such tax im24 posed on the other beneficiary. 
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1 ‘‘(G) DEFINITIONS AND SPECIAL RULES.— 

2 For purposes of this paragraph— 

3 ‘‘(i) QUALIFIED TRUST.—The term 

4 ‘qualified trust’ means a trust which is de5 scribed in section 7701(a)(30)(E). 

6 ‘‘(ii) VESTED INTEREST.—The term 

7 ‘vested interest’ means any interest which, 

8 as of the day before the expatriation date, is 

9 vested in the beneficiary. 

10 ‘‘(iii) NONVESTED INTEREST.—The 

11 term ‘nonvested interest’ means, with re12 spect to any beneficiary, any interest in a 

13 trust which is not a vested interest. Such 

14 interest shall be determined by assuming the 

15 maximum exercise of discretion in favor of 

16 the beneficiary and the occurrence of all 

17 contingencies in favor of the beneficiary. 

18 ‘‘(iv) ADJUSTMENTS.—The Secretary 

19 may provide for such adjustments to the 

20 bases of assets in a trust or a deferred tax 

21 account, and the timing of such adjust22 ments, in order to ensure that gain is taxed 

23 only once. 

24 ‘‘(v) COORDINATION WITH RETIREMENT

25 PLAN RULES.—This subsection shall not 
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1 apply to an interest in a trust which is 

2 part of a retirement plan to which sub3 section (d)(2) applies. 

4 ‘‘(3) DETERMINATION OF BENEFICIARIES’ INTER5 EST IN TRUST.— 

6 ‘‘(A) DETERMINATIONS UNDER PARAGRAPH

7 (1).—For purposes of paragraph (1), a bene8 ficiary’s interest in a trust shall be based upon 

9 all relevant facts and circumstances, including 

10 the terms of the trust instrument and any letter 

11 of wishes or similar document, historical pat12 terns of trust distributions, and the existence of 

13 and functions performed by a trust protector or 

14 any similar adviser. 

15 ‘‘(B) OTHER DETERMINATIONS.—For pur16 poses of this section— 

17 ‘‘(i) CONSTRUCTIVE OWNERSHIP.—If a 

18 beneficiary of a trust is a corporation, part19 nership, trust, or estate, the shareholders, 

20 partners, or beneficiaries shall be deemed to 

21 be the trust beneficiaries for purposes of this 

22 section. 

23 ‘‘(ii) TAXPAYER RETURN POSITION.—A 

24 taxpayer shall clearly indicate on its in25 come tax return— 
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1 ‘‘(I) the methodology used to de2 termine that taxpayer’s trust interest 

3 under this section, and 

4 ‘‘(II) if the taxpayer knows (or 

5 has reason to know) that any other 

6 beneficiary of such trust is using a dif7 ferent methodology to determine such 

8 beneficiary’s trust interest under this 

9 section. 

10 ‘‘(g) TERMINATION OF DEFERRALS, ETC.—In the case 

11 of any covered expatriate, notwithstanding any other provi12 sion of this title— 

13 ‘‘(1) any period during which recognition of in14 come or gain is deferred shall terminate on the day 

15 before the expatriation date, and 

16 ‘‘(2) any extension of time for payment of tax 

17 shall cease to apply on the day before the expatriation 

18 date and the unpaid portion of such tax shall be due 

19 and payable at the time and in the manner pre20 scribed by the Secretary. 

21 ‘‘(h) IMPOSITION OF TENTATIVE TAX.— 

22 ‘‘(1) IN GENERAL.—If an individual is required 

23 to include any amount in gross income under sub24 section (a) for any taxable year, there is hereby im25 posed, immediately before the expatriation date, a tax 
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1 in an amount equal to the amount of tax which 

2 would be imposed if the taxable year were a short tax3 able year ending on the expatriation date. 

4 ‘‘(2) DUE DATE.—The due date for any tax im5 posed by paragraph (1) shall be the 90th day after the 

6 expatriation date. 

7 ‘‘(3) TREATMENT OF TAX.—Any tax paid under 

8 paragraph (1) shall be treated as a payment of the 

9 tax imposed by this chapter for the taxable year to 

10 which subsection (a) applies. 

11 ‘‘(4) DEFERRAL OF TAX.—The provisions of sub12 section (b) shall apply to the tax imposed by this sub13 section to the extent attributable to gain includible in 

14 gross income by reason of this section. 

15 ‘‘(i) SPECIAL LIENS FOR DEFERRED TAX AMOUNTS.— 

16 ‘‘(1) IMPOSITION OF LIEN.— 

17 ‘‘(A) IN GENERAL.—If a covered expatriate 

18 makes an election under subsection (a)(4) or (b) 

19 which results in the deferral of any tax imposed 

20 by reason of subsection (a), the deferred amount 

21 (including any interest, additional amount, ad22 dition to tax, assessable penalty, and costs at23 tributable to the deferred amount) shall be a lien 

24 in favor of the United States on all property of 

25 the expatriate located in the United States (with-
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1 out regard to whether this section applies to the 

2 property). 

3 ‘‘(B) DEFERRED AMOUNT.—For purposes of 

4 this subsection, the deferred amount is the 

5 amount of the increase in the covered expatri6 ate’s income tax which, but for the election under 

7 subsection (a)(4) or (b), would have occurred by 

8 reason of this section for the taxable year includ9 ing the expatriation date. 

10 ‘‘(2) PERIOD OF LIEN.—The lien imposed by this 

11 subsection shall arise on the expatriation date and 

12 continue until— 

13 ‘‘(A) the liability for tax by reason of this 

14 section is satisfied or has become unenforceable 

15 by reason of lapse of time, or 

16 ‘‘(B) it is established to the satisfaction of 

17 the Secretary that no further tax liability may 

18 arise by reason of this section. 

19 ‘‘(3) CERTAIN RULES APPLY.—The rules set forth 

20 in paragraphs (1), (3), and (4) of section 6324A(d) 

21 shall apply with respect to the lien imposed by this 

22 subsection as if it were a lien imposed by section 

23 6324A. 
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1 ‘‘(j) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be necessary or appropriate to 

3 carry out the purposes of this section.’’. 

4 (b) INCLUSION IN INCOME OF GIFTS AND BEQUESTS

5 RECEIVED BY UNITED STATES CITIZENS AND RESIDENTS

6 FROM EXPATRIATES.—Section 102 (relating to gifts, etc. 

7 not included in gross income) is amended by adding at the 

8 end the following new subsection: 

9 ‘‘(d) GIFTS AND INHERITANCES FROM COVERED EX10 PATRIATES.— 

11 ‘‘(1) IN GENERAL.—Subsection (a) shall not ex12 clude from gross income the value of any property ac13 quired by gift, bequest, devise, or inheritance from a 

14 covered expatriate after the expatriation date. For 

15 purposes of this subsection, any term used in this sub16 section which is also used in section 877A shall have 

17 the same meaning as when used in section 877A. 

18 ‘‘(2) EXCEPTIONS FOR TRANSFERS OTHERWISE

19 SUBJECT TO ESTATE OR GIFT TAX.—Paragraph (1) 

20 shall not apply to any property if either— 

21 ‘‘(A) the gift, bequest, devise, or inheritance 

22 is— 

23 ‘‘(i) shown on a timely filed return of 

24 tax imposed by chapter 12 as a taxable gift 

25 by the covered expatriate, or 
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1 ‘‘(ii) included in the gross estate of the 

2 covered expatriate for purposes of chapter 

3 11 and shown on a timely filed return of 

4 tax imposed by chapter 11 of the estate of 

5 the covered expatriate, or 

6 ‘‘(B) no such return was timely filed but no 

7 such return would have been required to be filed 

8 even if the covered expatriate were a citizen or 

9 long-term resident of the United States.’’. 

10 (c) DEFINITION OF TERMINATION OF UNITED STATES

11 CITIZENSHIP.—Section 7701(a) is amended by adding at 

12 the end the following new paragraph: 

13 ‘‘(48) TERMINATION OF UNITED STATES CITIZEN14 SHIP.— 

15 ‘‘(A) IN GENERAL.—An individual shall not 

16 cease to be treated as a United States citizen be17 fore the date on which the individual’s citizen18 ship is treated as relinquished under section 

19 877A(e)(3). 

20 ‘‘(B) DUAL CITIZENS.—Under regulations 

21 prescribed by the Secretary, subparagraph (A) 

22 shall not apply to an individual who became at 

23 birth a citizen of the United States and a citizen 

24 of another country.’’. 
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1 (d) INELIGIBILITY FOR VISA OR ADMISSION TO

2 UNITED STATES.— 

3 (1) IN GENERAL.—Section 212(a)(10)(E) of the 

4 Immigration and Nationality Act (8 U.S.C. 

5 1182(a)(10)(E)) is amended to read as follows: 

6 ‘‘(E) FORMER CITIZENS NOT IN COMPLI7 ANCE WITH EXPATRIATION REVENUE PROVI8 SIONS.—Any alien who is a former citizen of the 

9 United States who relinquishes United States 

10 citizenship (within the meaning of section 

11 877A(e)(3) of the Internal Revenue Code of 1986) 

12 and who is not in compliance with section 877A 

13 of such Code (relating to expatriation).’’. 

14 (2) AVAILABILITY OF INFORMATION.— 

15 (A) IN GENERAL.—Section 6103(l) (relating 

16 to disclosure of returns and return information 

17 for purposes other than tax administration) is 

18 amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(19) DISCLOSURE TO DENY VISA OR ADMISSION

21 TO CERTAIN EXPATRIATES.—Upon written request of 

22 the Attorney General or the Attorney General’s dele23 gate, the Secretary shall disclose whether an indi24 vidual is in compliance with section 877A (and if not 

25 in compliance, any items of noncompliance) to offi-
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1 cers and employees of the Federal agency responsible 

2 for administering section 212(a)(10)(E) of the Immi3 gration and Nationality Act solely for the purpose of, 

4 and to the extent necessary in, administering such 

5 section 212(a)(10)(E).’’. 

6 (B) SAFEGUARDS.— 

7 (i) TECHNICAL AMENDMENTS.—Para8 graph (4) of section 6103(p) of the Internal 

9 Revenue Code of 1986, as amended by sec10 tion 202(b)(2)(B) of the Trade Act of 2002 

11 (Public Law 107–210; 116 Stat. 961), is 

12 amended by striking ‘‘or (17)’’ after ‘‘any 

13 other person described in subsection (l)(16)’’ 

14 each place it appears and inserting ‘‘or 

15 (18)’’. 

16 (ii) CONFORMING AMENDMENTS.—Sec17 tion 6103(p)(4) (relating to safeguards), as 

18 amended by clause (i), is amended by strik19 ing ‘‘or (18)’’ after ‘‘any other person de20 scribed in subsection (l)(16)’’ each place it 

21 appears and inserting ‘‘(18), or (19)’’. 

22 (3) EFFECTIVE DATES.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the amendments made by this 

25 subsection shall apply to individuals who relin-
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1 quish United States citizenship on or after the 

2 date of the enactment of this Act. 

3 (B) TECHNICAL AMENDMENTS.—The 

4 amendments made by paragraph (2)(B)(i) shall 

5 take effect as if included in the amendments 

6 made by section 202(b)(2)(B) of the Trade Act of 

7 2002 (Public Law 107–210; 116 Stat. 961). 

8 (e) CONFORMING AMENDMENTS.— 

9 (1) Section 877 is amended by adding at the end 

10 the following new subsection: 

11 ‘‘(g) APPLICATION.—This section shall not apply to an 

12 expatriate (as defined in section 877A(e)) whose expatria13 tion date (as so defined) occurs on or after February 2, 

14 2004.’’. 

15 (2) Section 2107 is amended by adding at the 

16 end the following new subsection: 

17 ‘‘(f) APPLICATION.—This section shall not apply to 

18 any expatriate subject to section 877A.’’. 

19 (3) Section 2501(a)(3) is amended by adding at 

20 the end the following new subparagraph: 

21 ‘‘(F) APPLICATION.—This paragraph shall 

22 not apply to any expatriate subject to section 

23 877A.’’. 

24 (4)(A) Paragraph (1) of section 6039G(d) is 

25 amended by inserting ‘‘or 877A’’ after ‘‘section 877’’. 
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1 (B) The second sentence of section 6039G(e) is 

2 amended by inserting ‘‘or who relinquishes United 

3 States citizenship (within the meaning of section 

4 877A(e)(3))’’ after ‘‘877(a))’’. 

5 (C) Section 6039G(f) is amended by inserting 

6 ‘‘or 877A(e)(2)(B)’’ after ‘‘877(e)(1)’’. 

7 (f) CLERICAL AMENDMENT.—The table of sections for 

8 subpart A of part II of subchapter N of chapter 1 is amend9 ed by inserting after the item relating to section 877 the 

10 following new item: 

‘‘Sec. 877A. Tax responsibilities of expatriation.’’. 

11 (g) EFFECTIVE DATE.— 

12 (1) IN GENERAL.—Except as provided in this 

13 subsection, the amendments made by this section shall 

14 apply to expatriates (within the meaning of section 

15 877A(e) of the Internal Revenue Code of 1986, as 

16 added by this section) whose expatriation date (as so 

17 defined) occurs on or after February 2, 2004. 

18 (2) GIFTS AND BEQUESTS.—Section 102(d) of 

19 the Internal Revenue Code of 1986 (as added by sub20 section (b)) shall apply to gifts and bequests received 

21 on or after February 2, 2004, from an individual or 

22 the estate of an individual whose expatriation date 

23 (as so defined) occurs after such date. 

24 (3) DUE DATE FOR TENTATIVE TAX.—The due 

25 date under section 877A(h)(2) of the Internal Revenue 
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1 Code of 1986, as added by this section, shall in no 

2 event occur before the 90th day after the date of the 

3 enactment of this Act. 

4 SEC. 5653. EXCISE TAX ON STOCK COMPENSATION OF IN5 SIDERS IN INVERTED CORPORATIONS. 

6 (a) IN GENERAL.—Subtitle D is amended by adding 

7 at the end the following new chapter: 

8 ‘‘CHAPTER 48—STOCK COMPENSATION OF 

9 INSIDERS IN INVERTED CORPORATIONS 

‘‘Sec. 5000A. Stock compensation of insiders in inverted corporations entities. 

10 ‘‘SEC. 5000A. STOCK COMPENSATION OF INSIDERS IN IN11 VERTED CORPORATIONS. 

12 ‘‘(a) IMPOSITION OF TAX.—In the case of an indi13 vidual who is a disqualified individual with respect to any 

14 inverted corporation, there is hereby imposed on such per15 son a tax equal to 20 percent of the value (determined under 

16 subsection (b)) of the specified stock compensation held (di17 rectly or indirectly) by or for the benefit of such individual 

18 or a member of such individual’s family (as defined in sec19 tion 267) at any time during the 12-month period begin20 ning on the date which is 6 months before the inversion 

21 date. 

22 ‘‘(b) VALUE.—For purposes of subsection (a)— 

23 ‘‘(1) IN GENERAL.—The value of specified stock 

24 compensation shall be— 
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1 ‘‘(A) in the case of a stock option (or other 

2 similar right) or any stock appreciation right, 

3 the fair value of such option or right, and 

4 ‘‘(B) in any other case, the fair market 

5 value of such compensation. 

6 ‘‘(2) DATE FOR DETERMINING VALUE.—The de7 termination of value shall be made— 

8 ‘‘(A) in the case of specified stock compensa9 tion held on the inversion date, on such date, 

10 ‘‘(B) in the case of such compensation which 

11 is canceled during the 6 months before the inver12 sion date, on the day before such cancellation, 

13 and 

14 ‘‘(C) in the case of such compensation which 

15 is granted after the inversion date, on the date 

16 such compensation is granted. 

17 ‘‘(c) TAX TO APPLY ONLY IF SHAREHOLDER GAIN

18 RECOGNIZED.—Subsection (a) shall apply to any disquali19 fied individual with respect to an inverted corporation only 

20 if gain (if any) on any stock in such corporation is recog21 nized in whole or part by any shareholder by reason of the 

22 acquisition referred to in section 7874(a)(2)(A) (determined 

23 by substituting ‘July 10, 2002’ for ‘March 20, 2002’) with 

24 respect to such corporation. 
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1 ‘‘(d) EXCEPTION WHERE GAIN RECOGNIZED ON COM2 PENSATION.—Subsection (a) shall not apply to— 

3 ‘‘(1) any stock option which is exercised on the 

4 inversion date or during the 6-month period before 

5 such date and to the stock acquired in such exercise, 

6 if income is recognized under section 83 on or before 

7 the inversion date with respect to the stock acquired 

8 pursuant to such exercise, and 

9 ‘‘(2) any specified stock compensation which is 

10 exercised, sold, exchanged, distributed, cashed out, or 

11 otherwise paid during such period in a transaction in 

12 which gain or loss is recognized in full. 

13 ‘‘(e) DEFINITIONS.—For purposes of this section— 

14 ‘‘(1) DISQUALIFIED INDIVIDUAL.—The term ‘dis15 qualified individual’ means, with respect to a cor16 poration, any individual who, at any time during the 

17 12-month period beginning on the date which is 6 

18 months before the inversion date— 

19 ‘‘(A) is subject to the requirements of section 

20 16(a) of the Securities Exchange Act of 1934 

21 with respect to such corporation, or 

22 ‘‘(B) would be subject to such requirements 

23 if such corporation were an issuer of equity secu24 rities referred to in such section. 
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1 ‘‘(2) INVERTED CORPORATION; INVERSION

2 DATE.— 

3 ‘‘(A) INVERTED CORPORATION.—The term 

4 ‘inverted corporation’ means any corporation to 

5 which subsection (a) or (b) of section 7874 ap6 plies determined— 

7 ‘‘(i) by substituting ‘July 10, 2002’ for 

8 ‘March 20, 2002’ in section 7874(a)(2)(A), 

9 and 

10 ‘‘(ii) without regard to subsection 

11 (b)(1)(A). 

12 Such term includes any predecessor or successor 

13 of such a corporation. 

14 ‘‘(B) INVERSION DATE.—The term ‘inver15 sion date’ means, with respect to a corporation, 

16 the date on which the corporation first becomes 

17 an inverted corporation. 

18 ‘‘(3) SPECIFIED STOCK COMPENSATION.— 

19 ‘‘(A) IN GENERAL.—The term ‘specified 

20 stock compensation’ means payment (or right to 

21 payment) granted by the inverted corporation 

22 (or by any member of the expanded affiliated 

23 group which includes such corporation) to any 

24 person in connection with the performance of 

25 services by a disqualified individual for such cor-
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1 poration or member if the value of such payment 

2 or right is based on (or determined by reference 

3 to) the value (or change in value) of stock in 

4 such corporation (or any such member). 

5 ‘‘(B) EXCEPTIONS.—Such term shall not in6 clude— 

7 ‘‘(i) any option to which part II of 

8 subchapter D of chapter 1 applies, or 

9 ‘‘(ii) any payment or right to payment 

10 from a plan referred to in section 

11 280G(b)(6). 

12 ‘‘(4) EXPANDED AFFILIATED GROUP.—The term 

13 ‘expanded affiliated group’ means an affiliated group 

14 (as defined in section 1504(a) without regard to sec15 tion 1504(b)(3)); except that section 1504(a) shall be 

16 applied by substituting ‘more than 50 percent’ for ‘at 

17 least 80 percent’ each place it appears. 

18 ‘‘(f) SPECIAL RULES.—For purposes of this section— 

19 ‘‘(1) CANCELLATION OF RESTRICTION.—The can20 cellation of a restriction which by its terms will never 

21 lapse shall be treated as a grant. 

22 ‘‘(2) PAYMENT OR REIMBURSEMENT OF TAX BY

23 CORPORATION TREATED AS SPECIFIED STOCK COM24 PENSATION.—Any payment of the tax imposed by this 

25 section directly or indirectly by the inverted corpora-
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1 tion or by any member of the expanded affiliated 

2 group which includes such corporation— 

3 ‘‘(A) shall be treated as specified stock com4 pensation, and 

5 ‘‘(B) shall not be allowed as a deduction 

6 under any provision of chapter 1. 

7 ‘‘(3) CERTAIN RESTRICTIONS IGNORED.—Wheth8 er there is specified stock compensation, and the value 

9 thereof, shall be determined without regard to any re10 striction other than a restriction which by its terms 

11 will never lapse. 

12 ‘‘(4) PROPERTY TRANSFERS.—Any transfer of 

13 property shall be treated as a payment and any right 

14 to a transfer of property shall be treated as a right 

15 to a payment. 

16 ‘‘(5) OTHER ADMINISTRATIVE PROVISIONS.—For 

17 purposes of subtitle F, any tax imposed by this sec18 tion shall be treated as a tax imposed by subtitle A. 

19 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

20 such regulations as may be necessary or appropriate to 

21 carry out the purposes of this section.’’. 

22 (b) DENIAL OF DEDUCTION.— 

23 (1) IN GENERAL.—Paragraph (6) of section 

24 275(a) is amended by inserting ‘‘48,’’ after ‘‘46,’’. 
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1 (2) $1,000,000 LIMIT ON DEDUCTIBLE COM2 PENSATION REDUCED BY PAYMENT OF EXCISE TAX ON

3 SPECIFIED STOCK COMPENSATION.—Paragraph (4) of 

4 section 162(m) is amended by adding at the end the 

5 following new subparagraph: 

6 ‘‘(G) COORDINATION WITH EXCISE TAX ON

7 SPECIFIED STOCK COMPENSATION.—The dollar 

8 limitation contained in paragraph (1) with re9 spect to any covered employee shall be reduced 

10 (but not below zero) by the amount of any pay11 ment (with respect to such employee) of the tax 

12 imposed by section 5000A directly or indirectly 

13 by the inverted corporation (as defined in such 

14 section) or by any member of the expanded affili15 ated group (as defined in such section) which in16 cludes such corporation.’’. 

17 (c) CONFORMING AMENDMENTS.— 

18 (1) The last sentence of section 3121(v)(2)(A) is 

19 amended by inserting before the period ‘‘or to any 

20 specified stock compensation (as defined in section 

21 5000A) on which tax is imposed by section 5000A’’. 

22 (2) The table of chapters for subtitle D is amend23 ed by adding at the end the following new item: 

‘‘Chapter 48. Stock compensation of insiders in inverted corporations.’’. 

24 (d) EFFECTIVE DATE.—The amendments made by this 

25 section shall take effect on July 11, 2002; except that periods 
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1 before such date shall not be taken into account in applying 

2 the periods in subsections (a) and (e)(1) of section 5000A 

3 of the Internal Revenue Code of 1986, as added by this sec4 tion. 

5 SEC. 5654. REINSURANCE OF UNITED STATES RISKS IN FOR6 EIGN JURISDICTIONS. 

7 (a) IN GENERAL.—Section 845(a) (relating to alloca8 tion in case of reinsurance agreement involving tax avoid9 ance or evasion) is amended by striking ‘‘source and char10 acter’’ and inserting ‘‘amount, source, or character’’. 

11 (b) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to any risk reinsured after April 11, 

13 2002. 

14 Subtitle H—Additional Revenue 

15 Provisions 

16 PART I—ADMINISTRATIVE PROVISIONS 

17 SEC. 5671. EXTENSION OF IRS USER FEES. 

18 (a) IN GENERAL.—Section 7528(c) (relating to termi19 nation) is amended by striking ‘‘December 31, 2004’’ and 

20 inserting ‘‘September 30, 2013’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall apply to requests after the date of the enact23 ment of this Act. 
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1 SEC. 5672. CLARIFICATION OF RULES FOR PAYMENT OF ES2 TIMATED TAX FOR CERTAIN DEEMED ASSET 

3 SALES. 

4 (a) IN GENERAL.—Paragraph (13) of section 338(h) 

5 (relating to tax on deemed sale not taken into account for 

6 estimated tax purposes) is amended by adding at the end 

7 the following: ‘‘The preceding sentence shall not apply with 

8 respect to a qualified stock purchase for which an election 

9 is made under paragraph (10).’’. 

10 (b) EFFECTIVE DATE.—The amendment made by sub11 section (a) shall apply to transactions occurring after the 

12 date of the enactment of this Act. 

13 SEC. 5673. PARTIAL PAYMENT OF TAX LIABILITY IN IN14 STALLMENT AGREEMENTS. 

15 (a) IN GENERAL.— 

16 (1) Section 6159(a) (relating to authorization of 

17 agreements) is amended— 

18 (A) by striking ‘‘satisfy liability for pay19 ment of’’ and inserting ‘‘make payment on’’, and 

20 (B) by inserting ‘‘full or partial’’ after ‘‘fa21 cilitate’’. 

22 (2) Section 6159(c) (relating to Secretary re23 quired to enter into installment agreements in certain 

24 cases) is amended in the matter preceding paragraph 

25 (1) by inserting ‘‘full’’ before ‘‘payment’’. 
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1 (b) REQUIREMENT TO REVIEW PARTIAL PAYMENT

2 AGREEMENTS EVERY TWO YEARS.—Section 6159, as 

3 amended by this Act, is amended by redesignating sub4 sections (d), (e), and (f) as subsections (e), (f), and (g), re5 spectively, and inserting after subsection (c) the following 

6 new subsection: 

7 ‘‘(d) SECRETARY REQUIRED TO REVIEW INSTALL8 MENT AGREEMENTS FOR PARTIAL COLLECTION EVERY TWO

9 YEARS.—In the case of an agreement entered into by the 

10 Secretary under subsection (a) for partial collection of a 

11 tax liability, the Secretary shall review the agreement at 

12 least once every 2 years.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by this 

14 section shall apply to agreements entered into on or after 

15 the date of the enactment of this Act. 

16 PART II—FINANCIAL INSTRUMENTS 

17 SEC. 5675. TREATMENT OF STRIPPED INTERESTS IN BOND 

18 AND PREFERRED STOCK FUNDS, ETC. 

19 (a) IN GENERAL.—Section 1286 (relating to tax treat20 ment of stripped bonds) is amended by redesignating sub21 section (f) as subsection (g) and by inserting after sub22 section (e) the following new subsection: 

23 ‘‘(f) TREATMENT OF STRIPPED INTERESTS IN BOND

24 AND PREFERRED STOCK FUNDS, ETC.—In the case of an 

25 account or entity substantially all of the assets of which 
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1 consist of bonds, preferred stock, or a combination thereof, 

2 the Secretary may by regulations provide that rules similar 

3 to the rules of this section and 305(e), as appropriate, shall 

4 apply to interests in such account or entity to which (but 

5 for this subsection) this section or section 305(e), as the case 

6 may be, would not apply.’’. 

7 (b) CROSS REFERENCE.—Subsection (e) of section 305 

8 is amended by adding at the end the following new para9 graph: 

10 ‘‘(7) CROSS REFERENCE.— 

‘‘For treatment of stripped interests in certain accounts or entities holding preferred stock, see section 

1286(f).’’. 

11 (c) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to purchases and dispositions after the 

13 date of the enactment of this Act. 

14 SEC. 5676. APPLICATION OF EARNINGS STRIPPING RULES 

15 TO PARTNERSHIPS AND S CORPORATIONS. 

16 (a) IN GENERAL.—Section 168(j) (relating to limita17 tion on deduction for interest on certain indebtedness) is 

18 amended by redesignating paragraph (8) as paragraph (9) 

19 and by inserting after paragraph (7) the following new 

20 paragraph: 

21 ‘‘(8) APPLICATION TO PARTNERSHIPS AND S COR22 PORATIONS.— 
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1 ‘‘(A) IN GENERAL.—This subsection shall 

2 apply to partnerships and S corporations in the 

3 same manner as it applies to C corporations. 

4 ‘‘(B) ALLOCATIONS TO CERTAIN CORPORATE

5 PARTNERS.—If a C corporation is a partner in 

6 a partnership— 

7 ‘‘(i) the corporation’s allocable share of 

8 indebtedness and interest income of the 

9 partnership shall be taken into account in 

10 applying this subsection to the corporation, 

11 and 

12 ‘‘(ii) if a deduction is not disallowed 

13 under this subsection with respect to any 

14 interest expense of the partnership, this sub15 section shall be applied separately in deter16 mining whether a deduction is allowable to 

17 the corporation with respect to the corpora18 tion’s allocable share of such interest ex19 pense.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to taxable years beginning after the date 

22 of the enactment of this Act. 
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1 SEC. 5677. RECOGNITION OF CANCELLATION OF INDEBTED2 NESS INCOME REALIZED ON SATISFACTION 

3 OF DEBT WITH PARTNERSHIP INTEREST. 

4 (a) IN GENERAL.—Paragraph (8) of section 108(e) (re5 lating to general rules for discharge of indebtedness (includ6 ing discharges not in title 11 cases or insolvency)) is 

7 amended to read as follows: 

8 ‘‘(8) INDEBTEDNESS SATISFIED BY CORPORATE

9 STOCK OR PARTNERSHIP INTEREST.—For purposes of 

10 determining income of a debtor from discharge of in11 debtedness, if— 

12 ‘‘(A) a debtor corporation transfers stock, or 

13 ‘‘(B) a debtor partnership transfers a cap14 ital or profits interest in such partnership, 

15 to a creditor in satisfaction of its recourse or non16 recourse indebtedness, such corporation or partnership 

17 shall be treated as having satisfied the indebtedness 

18 with an amount of money equal to the fair market 

19 value of the stock or interest. In the case of any part20 nership, any discharge of indebtedness income recog21 nized under this paragraph shall be included in the 

22 distributive shares of taxpayers which were the part23 ners in the partnership immediately before such dis24 charge.’’. 

25 (b) EFFECTIVE DATE.—The amendment made by this 

26 section shall apply with respect to cancellations of indebted-
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1 ness occurring on or after the date of the enactment of this 

2 Act. 

3 SEC. 5678. MODIFICATION OF STRADDLE RULES. 

4 (a) RULES RELATING TO IDENTIFIED STRADDLES.— 

5 (1) IN GENERAL.—Subparagraph (A) of section 

6 1092(a)(2) (relating to special rule for identified 

7 straddles) is amended to read as follows: 

8 ‘‘(A) IN GENERAL.—In the case of any 

9 straddle which is an identified straddle— 

10 ‘‘(i) paragraph (1) shall not apply 

11 with respect to identified positions com12 prising the identified straddle, 

13 ‘‘(ii) if there is any loss with respect to 

14 any identified position of the identified 

15 straddle, the basis of each of the identified 

16 offsetting positions in the identified straddle 

17 shall be increased by an amount which 

18 bears the same ratio to the loss as the unrec19 ognized gain with respect to such offsetting 

20 position bears to the aggregate unrecognized 

21 gain with respect to all such offsetting posi22 tions, and 

23 ‘‘(iii) any loss described in clause (ii) 

24 shall not otherwise be taken into account for 

25 purposes of this title.’’. 
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1 (2) IDENTIFIED STRADDLE.—Section 

2 1092(a)(2)(B) (defining identified straddle) is amend3 ed— 

4 (A) by striking clause (ii) and inserting the 

5 following: 

6 ‘‘(ii) to the extent provided by regula7 tions, the value of each position of which (in 

8 the hands of the taxpayer immediately be9 fore the creation of the straddle) is not less 

10 than the basis of such position in the hands 

11 of the taxpayer at the time the straddle is 

12 created, and’’, and 

13 (B) by adding at the end the following new 

14 flush sentence: 

15 ‘‘The Secretary shall prescribe regulations which 

16 specify the proper methods for clearly identifying 

17 a straddle as an identified straddle (and the po18 sitions comprising such straddle), which specify 

19 the rules for the application of this section for a 

20 taxpayer which fails to properly identify the po21 sitions of an identified straddle, and which 

22 specify the ordering rules in cases where a tax23 payer disposes of less than an entire position 

24 which is part of an identified straddle.’’. 
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1 (3) UNRECOGNIZED GAIN.—Section 1092(a)(3) 

2 (defining unrecognized gain) is amended by redesig3 nating subparagraph (B) as subparagraph (C) and 

4 by inserting after subparagraph (A) the following new 

5 subparagraph: 

6 ‘‘(B) SPECIAL RULE FOR IDENTIFIED

7 STRADDLES.—For purposes of paragraph 

8 (2)(A)(ii), the unrecognized gain with respect to 

9 any identified offsetting position shall be the ex10 cess of the fair market value of the position at 

11 the time of the determination over the fair mar12 ket value of the position at the time the taxpayer 

13 identified the position as a position in an identi14 fied straddle.’’ 

15 (4) CONFORMING AMENDMENT.—Section 

16 1092(c)(2) is amended by striking subparagraph (B) 

17 and by redesignating subparagraph (C) as subpara18 graph (B). 

19 (b) PHYSICALLY SETTLED POSITIONS.—Section 

20 1092(d) (relating to definitions and special rules) is amend21 ed by adding at the end the following new paragraph: 

22 ‘‘(8) SPECIAL RULES FOR PHYSICALLY SETTLED

23 POSITIONS.—For purposes of subsection (a), if a tax24 payer settles a position which is part of a straddle by 

25 delivering property to which the position relates (and 
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1 such position, if terminated, would result in a real2 ization of a loss), then such taxpayer shall be treated 

3 as if such taxpayer— 

4 ‘‘(A) terminated the position for its fair 

5 market value immediately before the settlement, 

6 and 

7 ‘‘(B) sold the property so delivered by the 

8 taxpayer at its fair market value.’’. 

9 (c) REPEAL OF STOCK EXCEPTION.— 

10 (1) IN GENERAL.—Section 1092(d)(3) is re11 pealed. 

12 (2) CONFORMING AMENDMENT.—Section 

13 1258(d)(1) is amended by striking ‘‘; except that the 

14 term ‘personal property’ shall include stock’’. 

15 (d) REPEAL OF QUALIFIED COVERED CALL EXCEP16 TION.—Section 1092(c)(4) is amended by adding at the end 

17 the following new subparagraph: 

18 ‘‘(I) TERMINATION.—This paragraph shall 

19 not apply to any position established on or after 

20 the date of the enactment of this subparagraph.’’. 

21 (e) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to positions established on or after the 

23 date of the enactment of this Act. 
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1 SEC. 5679. DENIAL OF INSTALLMENT SALE TREATMENT FOR 

2 ALL READILY TRADEABLE DEBT. 

3 (a) IN GENERAL.—Section 453(f)(4)(B) (relating to 

4 purchaser evidences of indebtedness payable on demand or 

5 readily tradeable) is amended by striking ‘‘is issued by a 

6 corporation or a government or political subdivision thereof 

7 and’’. 

8 (b) EFFECTIVE DATE.—The amendment made by this 

9 section shall apply to sales occurring on or after the date 

10 of the enactment of this Act. 

11 PART III—CORPORATIONS AND PARTNERSHIPS 

12 SEC. 5680. MODIFICATION OF TREATMENT OF TRANSFERS 

13 TO CREDITORS IN DIVISIVE REORGANIZA14 TIONS. 

15 (a) IN GENERAL.—Section 361(b)(3) (relating to treat16 ment of transfers to creditors) is amended by adding at the 

17 end the following new sentence: ‘‘In the case of a reorganiza18 tion described in section 368(a)(1)(D) with respect to which 

19 stock or securities of the corporation to which the assets are 

20 transferred are distributed in a transaction which qualifies 

21 under section 355, this paragraph shall apply only to the 

22 extent that the sum of the money and the fair market value 

23 of other property transferred to such creditors does not ex24 ceed the adjusted bases of such assets transferred.’’. 

25 (b) LIABILITIES IN EXCESS OF BASIS.—Section 

26 357(c)(1)(B) is amended by inserting ‘‘with respect to 
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1 which stock or securities of the corporation to which the as2 sets are transferred are distributed in a transaction which 

3 qualifies under section 355’’ after ‘‘section 368(a)(1)(D)’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to transfers of money or other property, 

6 or liabilities assumed, in connection with a reorganization 

7 occurring on or after the date of the enactment of this Act. 

8 SEC. 5681. CLARIFICATION OF DEFINITION OF NON9 QUALIFIED PREFERRED STOCK. 

10 (a) IN GENERAL.—Section 351(g)(3)(A) is amended 

11 by adding at the end the following: ‘‘Stock shall not be treat12 ed as participating in corporate growth to any significant 

13 extent unless there is a real and meaningful likelihood of 

14 the shareholder actually participating in the earnings and 

15 growth of the corporation.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to transactions after May 14, 2003. 

18 SEC. 5682. MODIFICATION OF DEFINITION OF CONTROLLED 

19 GROUP OF CORPORATIONS. 

20 (a) IN GENERAL.—Section 1563(a)(2) (relating to 

21 brother-sister controlled group) is amended by striking 

22 ‘‘possessing—’’ and all that follows through ‘‘(B)’’ and in23 serting ‘‘possessing’’. 

24 (b) APPLICATION OF EXISTING RULES TO OTHER

25 CODE PROVISIONS.—Section 1563(f) (relating to other defi-
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1 nitions and rules) is amended by adding at the end the 

2 following new paragraph: 

3 ‘‘(5) BROTHER-SISTER CONTROLLED GROUP DEF4 INITION FOR PROVISIONS OTHER THAN THIS PART.— 

5 ‘‘(A) IN GENERAL.—Except as specifically 

6 provided in an applicable provision, subsection 

7 (a)(2) shall be applied to an applicable provision 

8 as if it read as follows: 

9 ‘(2) BROTHER-SISTER CONTROLLED GROUP.— 

10 Two or more corporations if 5 or fewer persons who 

11 are individuals, estates, or trusts own (within the 

12 meaning of subsection (d)(2) stock possessing— 

13 ‘(A) at least 80 percent of the total com14 bined voting power of all classes of stock entitled 

15 to vote, or at least 80 percent of the total value 

16 of shares of all classes of stock, of each corpora17 tion, and 

18 ‘(B) more than 50 percent of the total com19 bined voting power of all classes of stock entitled 

20 to vote or more than 50 percent of the total value 

21 of shares of all classes of stock of each corpora22 tion, taking into account the stock ownership of 

23 each such person only to the extent such stock 

24 ownership is identical with respect to each such 

25 corporation.’ 
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1 ‘‘(B) APPLICABLE PROVISION.—For pur2 poses of this paragraph, an applicable provision 

3 is any provision of law (other than this part) 

4 which incorporates the definition of controlled 

5 group of corporations under subsection (a).’’. 

6 (c) EFFECTIVE DATE.—The amendments made by this 

7 section shall apply to taxable years beginning after the date 

8 of the enactment of this Act. 

9 SEC. 5683. MANDATORY BASIS ADJUSTMENTS IN CONNEC10 TION WITH PARTNERSHIP DISTRIBUTIONS 

11 AND TRANSFERS OF PARTNERSHIP INTER12 ESTS. 

13 (a) IN GENERAL.—Section 754 is repealed. 

14 (b) ADJUSTMENT TO BASIS OF UNDISTRIBUTED PART15 NERSHIP PROPERTY.—Section 734 is amended— 

16 (1) by striking ‘‘, with respect to which the elec17 tion provided in section 754 is in effect,’’ in the mat18 ter preceding paragraph (1) of subsection (b), 

19 (2) by striking ‘‘(as adjusted by section 732(d))’’ 

20 both places it appears in subsection (b), 

21 (3) by striking the last sentence of subsection (b), 

22 (4) by striking subsection (a) and by redesig23 nating subsections (b) and (c) as subsections (a) and 

24 (b), respectively, and 

25 (5) by striking ‘‘OPTIONAL’’ in the heading. 
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1 (c) ADJUSTMENT TO BASIS OF PARTNERSHIP PROP2 ERTY.—Section 743 is amended— 

3 (1) by striking ‘‘with respect to which the elec4 tion provided in section 754 is in effect’’ in the mat5 ter preceding paragraph (1) of subsection (b), 

6 (2) by striking subsection (a) and by redesig7 nating subsections (b) and (c) as subsections (a) and 

8 (b), respectively, 

9 (3) by adding at the end the following new sub10 section: 

11 ‘‘(c) ELECTION TO ADJUST BASIS FOR TRANSFERS

12 UPON DEATH OF PARTNER.—Subsection (a) shall not 

13 apply and no adjustments shall be made in the case of any 

14 transfer of an interest in a partnership upon the death of 

15 a partner unless an election to do so is made by the partner16 ship. Such an election shall apply with respect to all such 

17 transfers of interests in the partnership. Any election under 

18 section 754 in effect on the date of the enactment of this 

19 subsection shall constitute an election made under this sub20 section. Such election may be revoked by the partnership, 

21 subject to such limitations as may be provided by regula22 tions prescribed by the Secretary.’’, and 

23 (4) by striking ‘‘OPTIONAL’’ in the heading. 

24 (d) CONFORMING AMENDMENTS.— 

25 (1) Subsection (d) of section 732 is repealed. 
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1 (2) Section 755(a) is amended— 

2 (A) by striking ‘‘section 734(b) (relating to 

3 the optional adjustment’’ and inserting ‘‘section 

4 734(a) (relating to the adjustment’’, and 

5 (B) by striking ‘‘section 743(b) (relating to 

6 the optional adjustment’’ and inserting ‘‘section 

7 743(a) (relating to the adjustment’’. 

8 (3) Section 761(e)(2) is amended by striking 

9 ‘‘optional’’. 

10 (4) Section 774(a) is amended by striking 

11 ‘‘743(b)’’ both places it appears and inserting 

12 ‘‘743(a)’’. 

13 (5) The item relating to section 734 in the table 

14 of sections for subpart B of part II of subchapter K 

15 of chapter 1 is amended by striking ‘‘Optional’’. 

16 (6) The item relating to section 743 in the table 

17 of sections for subpart C of part II of subchapter K 

18 of chapter 1 is amended by striking ‘‘Optional’’. 

19 (e) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section shall 

22 apply to transfers and distributions made after the 

23 date of the enactment of this Act. 
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1 (2) REPEAL OF SECTION 732(d).—The amend2 ments made by subsections (b)(2) and (d)(1) shall 

3 apply to— 

4 (A) except as provided in subparagraph 

5 (B), transfers made after the date of the enact6 ment of this Act, and 

7 (B) in the case of any transfer made on or 

8 before such date to which section 732(d) applies, 

9 distributions made after the date which is 2 

10 years after such date of enactment. 

11 SEC. 5684. CLASS LIVES FOR UTILITY GRADING COSTS. 

12 (a) GAS UTILITY PROPERTY.—Section 168(e)(3)(E) 

13 (defining 15-year property) is amended by striking ‘‘and’’ 

14 at the end of clause (ii), by striking the period at the end 

15 of clause (iii) and inserting ‘‘, and’’, and by adding at the 

16 end the following new clause: 

17 ‘‘(iv) initial clearing and grading land 

18 improvements with respect to gas utility 

19 property.’’. 

20 (b) ELECTRIC UTILITY PROPERTY.—Section 168(e)(3) 

21 is amended by adding at the end the following new subpara22 graph: 

23 ‘‘(F) 20-YEAR PROPERTY.—The term ‘20- 

24 year property’ means initial clearing and grad25 ing land improvements with respect to any elec-
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1 tric utility transmission and distribution 

2 plant.’’. 

3 (c) CONFORMING AMENDMENTS.—The table contained 

4 in section 168(g)(3)(B) is amended— 

5 (1) by inserting ‘‘or (E)(iv)’’ after ‘‘(E)(iii)’’, 

6 and 

7 (2) by adding at the end the following new item: 

‘‘(F) ................................................................................................. 25’’. 

8 (d) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to property placed in service after the 

10 date of the enactment of this Act. 

11 SEC. 5685. CONSISTENT AMORTIZATION OF PERIODS FOR 

12 INTANGIBLES. 

13 (a) START-UP EXPENDITURES.— 

14 (1) ALLOWANCE OF DEDUCTION.—Paragraph (1) 

15 of section 195(b) (relating to start-up expenditures) is 

16 amended to read as follows: 

17 ‘‘(1) ALLOWANCE OF DEDUCTION.—If a taxpayer 

18 elects the application of this subsection with respect to 

19 any start-up expenditures— 

20 ‘‘(A) the taxpayer shall be allowed a deduc21 tion for the taxable year in which the active 

22 trade or business begins in an amount equal to 

23 the lesser of— 
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1 ‘‘(i) the amount of start-up expendi2 tures with respect to the active trade or 

3 business, or 

4 ‘‘(ii) $5,000, reduced (but not below 

5 zero) by the amount by which such start-up 

6 expenditures exceed $50,000, and 

7 ‘‘(B) the remainder of such start-up expend8 itures shall be allowed as a deduction ratably 

9 over the 180-month period beginning with the 

10 month in which the active trade or business be11 gins.’’. 

12 (2) CONFORMING AMENDMENT.—Subsection (b) 

13 of section 195 is amended by striking ‘‘AMORTIZE’’ 

14 and inserting ‘‘DEDUCT’’ in the heading. 

15 (b) ORGANIZATIONAL EXPENDITURES.—Subsection (a) 

16 of section 248 (relating to organizational expenditures) is 

17 amended to read as follows: 

18 ‘‘(a) ELECTION TO DEDUCT.—If a corporation elects 

19 the application of this subsection (in accordance with regu20 lations prescribed by the Secretary) with respect to any or21 ganizational expenditures— 

22 ‘‘(1) the corporation shall be allowed a deduction 

23 for the taxable year in which the corporation begins 

24 business in an amount equal to the lesser of— 
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1 ‘‘(A) the amount of organizational expendi2 tures with respect to the taxpayer, or 

3 ‘‘(B) $5,000, reduced (but not below zero) by 

4 the amount by which such organizational ex5 penditures exceed $50,000, and 

6 ‘‘(2) the remainder of such organizational ex7 penditures shall be allowed as a deduction ratably 

8 over the 180-month period beginning with the month 

9 in which the corporation begins business.’’. 

10 (c) TREATMENT OF ORGANIZATIONAL AND SYNDICA11 TION FEES OR PARTNERSHIPS.— 

12 (1) IN GENERAL.—Section 709(b) (relating to 

13 amortization of organization fees) is amended by re14 designating paragraph (2) as paragraph (3) and by 

15 amending paragraph (1) to read as follows: 

16 ‘‘(1) ALLOWANCE OF DEDUCTION.—If a taxpayer 

17 elects the application of this subsection (in accordance 

18 with regulations prescribed by the Secretary) with re19 spect to any organizational expenses— 

20 ‘‘(A) the taxpayer shall be allowed a deduc21 tion for the taxable year in which the partner22 ship begins business in an amount equal to the 

23 lesser of— 

24 ‘‘(i) the amount of organizational ex25 penses with respect to the partnership, or 
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1 ‘‘(ii) $5,000, reduced (but not below 

2 zero) by the amount by which such organi3 zational expenses exceed $50,000, and 

4 ‘‘(B) the remainder of such organizational 

5 expenses shall be allowed as a deduction ratably 

6 over the 180-month period beginning with the 

7 month in which the partnership begins business. 

8 ‘‘(2) DISPOSITIONS BEFORE CLOSE OF AMORTI9 ZATION PERIOD.—In any case in which a partnership 

10 is liquidated before the end of the period to which 

11 paragraph (1)(B) applies, any deferred expenses at12 tributable to the partnership which were not allowed 

13 as a deduction by reason of this section may be de14 ducted to the extent allowable under section 165.’’. 

15 (2) CONFORMING AMENDMENT.—Subsection (b) 

16 of section 709 is amended by striking ‘‘AMORTIZA17 TION’’ and inserting ‘‘DEDUCTION’’ in the heading. 

18 (d) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to amounts paid or incurred after the 

20 date of the enactment of this Act. 
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1 Subtitle I—Tax-Exempt Financing 

2 of Highway Projects and Rail3 Truck Transfer Facilities 

4 SEC. 5691. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS 

5 AND RAIL-TRUCK TRANSFER FACILITIES. 

6 (a) TREATMENT AS EXEMPT FACILITY BOND.—Sub7 section (a) of section 142 (relating to exempt facility bond) 

8 is amended by striking ‘‘or’’ at the end of paragraph (12), 

9 by striking the period at the end of paragraph (13), and 

10 by adding at the end the following: 

11 ‘‘(14) qualified highway facilities, or 

12 ‘‘(15) qualified surface freight transfer facili13 ties.’’. 

14 (b) QUALIFIED HIGHWAY FACILITIES AND QUALIFIED

15 SURFACE FREIGHT TRANSFER FACILITIES.—Section 142 is 

16 amended by adding at the end the following: 

17 ‘‘(l) QUALIFIED HIGHWAY AND SURFACE FREIGHT

18 TRANSFER FACILITIES.— 

19 ‘‘(1) QUALIFIED HIGHWAY FACILITIES.—For 

20 purposes of subsection (a)(14), the term ‘qualified 

21 highway facilities’ means— 

22 ‘‘(A) any surface transportation project 

23 which receives Federal assistance under title 23, 

24 United States Code (as in effect on the date of 

25 the enactment of this subsection), or 
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1 ‘‘(B) any project for an international bridge 

2 or tunnel for which an international entity au3 thorized under Federal or State law is respon4 sible and which receives Federal assistance under 

5 such title 23. 

6 ‘‘(2) QUALIFIED SURFACE FREIGHT TRANSFER

7 FACILITIES.—For purposes of subsection (a)(15), the 

8 term ‘qualified surface freight transfer facilities’ 

9 means facilities for the transfer of freight from truck 

10 to rail or rail to truck (including any temporary 

11 storage facilities directly related to such transfers) 

12 which receives Federal assistance under either title 23 

13 or title 49, United States Code (as in effect on the 

14 date of the enactment of this subsection). 

15 ‘‘(3) AGGREGATE FACE AMOUNT OF TAX-EXEMPT

16 FINANCING FOR FACILITIES.— 

17 ‘‘(A) IN GENERAL.—An issue shall not be 

18 treated as an issue described in subsection 

19 (a)(14) or (a)(15) if the aggregate face amount 

20 of bonds issued by any State pursuant thereto 

21 (when added to the aggregate face amount of 

22 bonds previously so issued) exceeds 

23 $15,000,000,000. 

24 ‘‘(B) ALLOCATION BY SECRETARY OF

25 TRANSPORTATION.—The Secretary of Transpor-
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1 tation shall allocate the amount described in sub2 paragraph (A) among eligible projects described 

3 in subsections (a)(14) and (a)(15) in such man4 ner as the Secretary determines appropriate.’’. 

5 (c) EXEMPTION FROM GENERAL STATE VOLUME

6 CAPS.—Paragraph (3) of section 146(g) of the Internal 

7 Revenue Code of 1986 (relating to exception for certain 

8 bonds) is amended by striking ‘‘or (13)’’ and all that follows 

9 through the end of the paragraph and inserting ‘‘(13), (14), 

10 or (15) of section 142(a), and’’. 

11 (d) EFFECTIVE DATE.—The amendments made by this 

12 section apply to bonds issued after the date of the enactment 

13 of this Act. 

14 SEC. 5692. ADDITION OF VACCINES AGAINST HEPATITIS A 

15 TO LIST OF TAXABLE VACCINES. 

16 (a) IN GENERAL.—Section 4132(a)(1) (defining tax17 able vaccine) is amended by redesignating subparagraphs 

18 (I), (J), (K), and (L) as subparagraphs (J), (K), (L), and 

19 (M), respectively, and by inserting after subparagraph (H) 

20 the following new subparagraph: 

21 ‘‘(I) Any vaccine against hepatitis A.’’. 

22 (b) CONFORMING AMENDMENT.—Section 

23 9510(c)(1)(A) is amended by striking ‘‘October 18, 2000’’ 

24 and inserting ‘‘the date of the enactment of the Safe, Ac-
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1 countable, Flexible, and Efficient Transportation Equity 

2 Act of 2004’’. 

3 (c) EFFECTIVE DATE.— 

4 (1) SALES, ETC.—The amendments made by this 

5 section shall apply to sales and uses on or after the 

6 first day of the first month which begins more than 

7 4 weeks after the date of the enactment of this Act. 

8 (2) DELIVERIES.—For purposes of paragraph 

9 (1) and section 4131 of the Internal Revenue Code of 

10 1986, in the case of sales on or before the effective date 

11 described in such paragraph for which delivery is 

12 made after such date, the delivery date shall be con13 sidered the sale date. 

14 SEC. 5693. ADDITION OF VACCINES AGAINST INFLUENZA TO 

15 LIST OF TAXABLE VACCINES. 

16 (a) IN GENERAL.—Section 4132(a)(1) (defining tax17 able vaccine), as amended by section 5692 of this Act, is 

18 amended by adding at the end the following new subpara19 graph: 

20 ‘‘(N) Any trivalent vaccine against influ21 enza.’’. 

22 (b) EFFECTIVE DATE.— 

23 (1) SALES, ETC.—The amendment made by this 

24 section shall apply to sales and uses on or after the 

25 later of— 
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1 (A) the first day of the first month which 

2 begins more than 4 weeks after the date of the en3 actment of this Act, or 

4 (B) the date on which the Secretary of 

5 Health and Human Services lists any vaccine 

6 against influenza for purposes of compensation 

7 for any vaccine-related injury or death through 

8 the Vaccine Injury Compensation Trust Fund. 

9 (2) DELIVERIES.—For purposes of paragraph 

10 (1) and section 4131 of the Internal Revenue Code of 

11 1986, in the case of sales on or before the effective date 

12 described in such paragraph for which delivery is 

13 made after such date, the delivery date shall be con14 sidered the sale date. 

15 SEC. 5694. EXTENSION OF AMORTIZATION OF INTANGIBLES 

16 TO SPORTS FRANCHISES. 

17 (a) IN GENERAL.—Section 197(e) (relating to excep18 tions to definition of section 197 intangible) is amended 

19 by striking paragraph (6) and by redesignating paragraphs 

20 (7) and (8) as paragraphs (6) and (7), respectively. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1)(A) Section 1056 (relating to basis limitation 

23 for player contracts transferred in connection with 

24 the sale of a franchise) is repealed. 
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1 (B) The table of sections for part IV of sub2 chapter O of chapter 1 is amended by striking the 

3 item relating to section 1056. 

4 (2) Section 1245(a) (relating to gain from dis5 position of certain depreciable property) is amended 

6 by striking paragraph (4). 

7 (3) Section 1253 (relating to transfers of fran8 chises, trademarks, and trade names) is amended by 

9 striking subsection (e). 

10 (c) EFFECTIVE DATES.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by this section shall 

13 apply to property acquired after the date of the enact14 ment of this Act. 

15 (2) SECTION 1245.—The amendment made by 

16 subsection (b)(2) shall apply to franchises acquired 

17 after the date of the enactment of this Act. 

18 TITLE VI—TRANSPORTATION 

19 DISCRETIONARY SPENDING 

20 GUARANTEE AND BUDGET 

21 OFFSETS 

22 SEC. 6101. SENSE OF THE SENATE ON OVERALL FEDERAL 

23 BUDGET. 

24 It is the sense of the Senate that— 
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1 (1) comprehensive statutory budget enforcement 

2 measures, the jurisdiction of which lies with the Sen3 ate Budget Committee and Senate Governmental Af4 fairs Committee, should— 

5 (A) be enacted this year; and 

6 (B) address all areas of the Federal budget, 

7 including discretionary spending, direct spend8 ing, and revenues; and 

9 (2) special allocations for transportation or any 

10 other categories of spending should be considered in 

11 that context and be consistent with the rest of the 

12 Federal budget. 

13 SEC. 6102. DISCRETIONARY SPENDING CATEGORIES. 

14 (a) DEFINITIONS.— 

15 (1) HIGHWAY CATEGORY.—Section 250(c)(4)(B) 

16 of the Balanced Budget and Emergency Deficit Con17 trol Act of 1985 (2 U.S.C. 900(c)(4)(B)) is amend18 ed— 

19 (A) by striking ‘‘Transportation Equity Act 

20 for the 21st Century’’ and inserting ‘‘Safe, Ac21 countable, Flexible, and Efficient Transportation 

22 Equity Act of 2004’’; and 

23 (B) by adding at the end the following: 

24 ‘‘(v) 69–8158–0–7–401 (Motor Carrier 

25 Safety Grants). 
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1 ‘‘(vi) 69–8159–0–7–401 (Motor Carrier 

2 Safety Operations and Programs).’’. 

3 (2) MASS TRANSIT CATEGORY.—Section 

4 250(c)(4) of the Balanced Budget and Emergency 

5 Deficit Control Act of 1985 (2 U.S.C. 900(c)(4)) is 

6 amended by striking subparagraph (C) and inserting 

7 the following: 

8 ‘‘(C) MASS TRANSIT CATEGORY.—The term 

9 ‘mass transit category’ means the following 

10 budget accounts, or portions of the accounts, that 

11 are subject to the obligation limitations on con12 tract authority provided in the Safe, Account13 able, Flexible, and Efficient Transportation Eq14 uity Act of 2004 or for which appropriations are 

15 provided in accordance with authorizations con16 tained in that Act: 

17 ‘‘(i) 69–1120–0–1–401 (Administrative 

18 Expenses). 

19 ‘‘(ii) 69–1134–0–1–401 (Capital In20 vestment Grants). 

21 ‘‘(iii) 69–8191–0–7–401 (Discretionary 

22 Grants). 

23 ‘‘(iv) 69–1129–0–1–401 (Formula 

24 Grants). 
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1 ‘‘(v) 69–8303–0–7–401 (Formula 

2 Grants and Research). 

3 ‘‘(vi) 69–1127–0–1–401 (Interstate 

4 Transfer Grants—Transit). 

5 ‘‘(vii) 69–1125–0–1–401 (Job Access 

6 and Reverse Commute). 

7 ‘‘(viii) 69–1122–0–1–401 (Miscella8 neous Expired Accounts). 

9 ‘‘(ix) 69–1139–0–1–401 (Major Capital 

10 Investment Grants). 

11 ‘‘(x) 69–1121–0–1–401 (Research, 

12 Training and Human Resources). 

13 ‘‘(xi) 69–8350–0–7–401 (Trust Fund 

14 Share of Expenses). 

15 ‘‘(xii) 69–1137–0–1–401 (Transit 

16 Planning and Research). 

17 ‘‘(xiii) 69–1136–0–1–401 (University 

18 Transportation Research). 

19 ‘‘(xiv) 69–1128–0–1–401 (Washington 

20 Metropolitan Area Transit Authority).’’. 

21 (b) HIGHWAY FUNDING REVENUE ALIGNMENT.—Sec22 tion 251(b)(1)(B) of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) is 

24 amended— 

25 (1) in clause (i)— 
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1 (A) by inserting ‘‘for each of fiscal years 

2 2006 through 2009’’ after ‘‘submits the budget’’; 

3 (B) by inserting ‘‘the obligation limitation 

4 and outlay limit for’’ after ‘‘adjustments to’’; 

5 and 

6 (C) by striking ‘‘provided in clause 

7 (ii)(I)(cc).’’ and inserting the following: ‘‘follows: 

8 ‘‘(I) OMB shall take the actual 

9 level of highway receipts for the year 

10 before the current year and subtract 

11 the sum of the estimated level of high12 way receipts in clause (iii), plus any 

13 amount previously calculated under 

14 clauses (i)(II) and (ii) for that year. 

15 ‘‘(II) OMB shall take the current 

16 estimate of highway receipts for the 

17 current year and subtract the esti18 mated level of highway receipts in 

19 clause (iii) for that year. 

20 ‘‘(III) OMB shall— 

21 ‘‘(aa) take the sum of the 

22 amounts calculated under sub23 clauses (I) and (II) and add that 

24 amount to the obligation limita25 tion set forth in section 6103 of 
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1 the Safe, Accountable, Flexible, 

2 and Efficient Transportation Eq3 uity Act of 2004 for the highway 

4 category for the budget year, and 

5 calculate the outlay change result6 ing from that change in obliga7 tions relative to that amount for 

8 the budget year and each outyear 

9 using current estimates; and 

10 ‘‘(bb) after making the cal11 culation under item (aa), adjust 

12 the obligation limitation set forth 

13 in section 6103 of the Safe, Ac14 countable, Flexible, and Efficient 

15 Transportation Equity Act of 

16 2004 for the budget year by add17 ing the amount calculated under 

18 subclauses (I) and (II).’’; 

19 (2) by striking clause (ii) and inserting the fol20 lowing: 

21 ‘‘(ii) When the President submits the 

22 supplementary budget estimates for each of 

23 fiscal years 2006 through 2009 under sec24 tion 1106 of title 31, United States Code, 

25 OMB’s Mid-Session Review shall include 
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1 adjustments to the obligation limitation and 

2 outlay limit for the highway category for 

3 the budget year and each outyear as follows: 

4 ‘‘(I) OMB shall take the most re5 cent estimate of highway receipts for 

6 the current year (based on OMB’s Mid7 Session Review) and subtract the esti8 mated level of highway receipts in 

9 clause (iii) plus any amount pre10 viously calculated and included in the 

11 President’s Budget under clause (i)(II) 

12 for that year. 

13 ‘‘(II) OMB shall— 

14 ‘‘(aa) take the amount cal15 culated under subclause (I) and 

16 add that amount to the amount of 

17 obligations set forth in section 

18 6103 of the Safe, Accountable, 

19 Flexible, and Efficient Transpor20 tation Equity Act of 2004 for the 

21 highway category for the budget 

22 year, and calculate the outlay 

23 change resulting from that change 

24 in obligations relative to that 

25 amount for the budget year and 
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1 each outyear using current esti2 mates; and 

3 ‘‘(bb) after making the cal4 culation under item (aa), adjust 

5 the amount of obligations set forth 

6 in section 6103 of the Safe, Ac7 countable, Flexible, and Efficient 

8 Transportation Equity Act of 

9 2004 for the budget year by add10 ing the amount calculated under 

11 subclause (I).’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(iii) The estimated level of highway 

14 receipts for the purpose of this subpara15 graph are— 

16 ‘‘(I) for fiscal year 2004, 

17 $29,945,938,902; 

18 ‘‘(II) for fiscal year 2005, 

19 $36,294,778,392; 

20 ‘‘(III) for fiscal year 2006, 

21 $37,766,517,123; 

22 ‘‘(IV) for fiscal year 2007, 

23 $38,795,061,111; 

24 ‘‘(V) for fiscal year 2008, 

25 $39,832,795,606; and 
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1 ‘‘(VI) for fiscal year 2009, 

2 $40,964,722,457. 

3 ‘‘(iv) In this subparagraph, the term 

4 ‘‘highway receipts’’ means the governmental 

5 receipts and interest credited to the highway 

6 account of the Highway Trust Fund.’’. 

7 (c) CONTINUATION OF SEPARATE SPENDING CAT8 EGORIES.—For the purpose of section 251(c) of the Bal9 anced Budget and Emergency Deficit Control Act of 1985 

10 (2 U.S.C. 901(c)), the discretionary spending limits for the 

11 highway category and the mass transit category shall be— 

12 (1) for fiscal year 2004— 

13 (A) $28,876,732,956 for the highway cat14 egory; and 

15 (B) $6,262,000,000 for the mass transit cat16 egory; 

17 (2) for fiscal year 2005— 

18 (A) $31,991,246,160 for the highway cat19 egory; and 

20 (B) $6,903,000,000 for the mass transit cat21 egory; 

22 (3) for fiscal year 2006— 

23 (A) $35,598,640,776 for the highway cat24 egory; and 
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1 (B) $7,974,000,000 for the mass transit cat2 egory; 

3 (4) for fiscal year 2007— 

4 (A) $37,871,760,938 for the highway cat5 egory; and 

6 (B) $8,658,000,000 for the mass transit cat7 egory; 

8 (5) for fiscal year 2008— 

9 (A) $38,722,907,474 for the highway cat10 egory; and 

11 (B) $9,222,000,000 for the mass transit cat12 egory; and 

13 (6) for fiscal year 2009— 

14 (A) $40,537,563,667 for the highway cat15 egory; and 

16 (B) $9,897,000,000 for the mass transit cat17 egory. 

18 (d) ADDITIONAL ADJUSTMENTS.—Section 251(b)(1) of 

19 the Balanced Budget and Emergency Deficit Control Act 

20 of 1985 (2 U.S.C. 901(b)(1)) is amended— 

21 (1) in subparagraph (C)— 

22 (A) in clause (i), by striking ‘‘fiscal years 

23 2000, 2001, 2002, or 2003,’’ and inserting ‘‘each 

24 of fiscal years 2006, 2007, 2008, and 2009,’’; and 
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1 (B) in clause (ii), by striking ‘‘2002 and 

2 2003’’ and inserting ‘‘2008 and 2009’’; and 

3 (2) in subparagraph (D)— 

4 (A) in clause (i)— 

5 (i) by striking ‘‘1999’’ and inserting 

6 ‘‘2005’’; 

7 (ii) by striking ‘‘2000 through 2003’’ 

8 and inserting ‘‘2006 through 2009’’; and 

9 (iii) by striking ‘‘section 8103 of the 

10 Transportation Equity Act for the 21st Cen11 tury’’ and inserting ‘‘section 6102 of the 

12 Safe, Accountable, Flexible, and Efficient 

13 Transportation Equity Act of 2004’’; and 

14 (B) in clause (ii), by striking ‘‘2000, 2001, 

15 2002, or 2003’’ and inserting ‘‘2006, 2007, 2008, 

16 and 2009’’. 

17 SEC. 6103. LEVEL OF OBLIGATION LIMITATIONS. 

18 (a) HIGHWAY CATEGORY.—For the purpose of section 

19 251(b) of the Balanced Budget and Emergency Deficit Con20 trol Act of 1985 (2 U.S.C. 901(b)), the level of obligation 

21 limitations for the highway category is— 

22 (1) for fiscal year 2004, $34,651,000,000; 

23 (2) for fiscal year 2005, $38,927,000,000; 

24 (3) for fiscal year 2006, $40,186,000,000; 

25 (4) for fiscal year 2007, $40,229,000,000; 
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1 (5) for fiscal year 2008, $40,563,000,000; and 

2 (6) for fiscal year 2009, $45,622,000,000. 

3 (b) MASS TRANSIT CATEGORY.—For the purposeof 

4 section 251(b) of the Balanced Budget and Emergency Def5 icit Control Act of 1985 (2 U.S.C. 901(b)), the level of obli6 gation limitations for the mass transit category is— 

7 (1) for fiscal year 2004, $7,265,877,000; 

8 (2) for fiscal year 2005, $8,650,000,000;

9 (3) for fiscal year 2006, $9,085,123,000; 

10 (4) for fiscal year 2007, $9,600,000,000;

11 (5) for fiscal year 2008, $10,490,000,000; and 

12 (6) for fiscal year 2009, $11,430,000,000. 

13 For the purpose of this subsection, the term ‘‘obligation lim14 itations’’ means the sum of budget authority and obligation 

15 limitations. 

16 TITLE VII—MISCELLANEOUS 

17 PROVISIONS 

18 SEC. 7001. REIMBURSEMENT OF CERTAIN TRANSPOR19 TATION COSTS INCURRED BY MEMBERS OF 

20 THE UNITED STATES ARMED FORCES ON 

21 REST AND RECUPERATION LEAVE. 

22 The Secretary of Defense shall reimburse a member of 

23 the United States Armed Forces (out of funds available for 

24 the Armed Forces for operation and maintenance for the 

25 relevant fiscal year) for transportation expenses incurred 
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1 by such member for 1 round trip by such member between 

2 2 locations within the United States in connection with 

3 leave taken under the Central Command Rest and Recuper4 ation Leave Program during the period beginning on Sep5 tember 25, 2003, and ending on December 18, 2003. 

6 TITLE VIII—SOLID WASTE 

7 DISPOSAL 

8 SEC. 8001. INCREASED USE OF RECOVERED MINERAL COM9 PONENT IN FEDERALLY FUNDED PROJECTS 

10 INVOLVING PROCUREMENT OF CEMENT OR 

11 CONCRETE. 

12 (a) IN GENERAL.—Subtitle F of the Solid Waste Dis13 posal Act (42 U.S.C. 6961 et seq.) is amended by adding 

14 at the end the following: 

15 ‘‘SEC. 6005. INCREASED USE OF RECOVERED MINERAL COM16 PONENT IN FEDERALLY FUNDED PROJECTS 

17 INVOLVING PROCUREMENT OF CEMENT OR 

18 CONCRETE. 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) AGENCY HEAD.—The term ‘agency head’ 

21 means— 

22 ‘‘(A) the Secretary of Transportation; and 

23 ‘‘(B) the head of each other Federal agency 

24 that on a regular basis procures, or provides 

25 Federal funds to pay or assist in paying the cost 
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1 of procuring, material for cement or concrete 

2 projects. 

3 ‘‘(2) CEMENT OR CONCRETE PROJECT.—The 

4 term ‘cement or concrete project’ means a project for 

5 the construction or maintenance of a highway or 

6 other transportation facility or a Federal, State, or 

7 local government building or other public facility 

8 that— 

9 ‘‘(A) involves the procurement of cement or 

10 concrete; and 

11 ‘‘(B) is carried out in whole or in part 

12 using Federal funds. 

13 ‘‘(3) RECOVERED MINERAL COMPONENT.—The 

14 term ‘recovered mineral component’ means— 

15 ‘‘(A) ground granulated blast furnace slag; 

16 ‘‘(B) coal combustion fly ash; and 

17 ‘‘(C) any other waste material or byproduct 

18 recovered or diverted from solid waste that the 

19 Administrator, in consultation with an agency 

20 head, determines should be treated as recovered 

21 mineral component under this section for use in 

22 cement or concrete projects paid for, in whole or 

23 in part, by the agency head. 

24 ‘‘(b) IMPLEMENTATION OF REQUIREMENTS.— 
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1 ‘‘(1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this section, the Adminis3 trator and each agency head shall take such actions 

4 as are necessary to implement fully all procurement 

5 requirements and incentives in effect as of the date of 

6 enactment of this section (including guidelines under 

7 section 6002) that provide for the use of cement and 

8 concrete incorporating recovered mineral component 

9 in cement or concrete projects. 

10 ‘‘(2) PRIORITY.—In carrying out paragraph (1) 

11 an agency head shall give priority to achieving great12 er use of recovered mineral component in cement or 

13 concrete projects for which recovered mineral compo14 nents historically have not been used or have been 

15 used only minimally. 

16 ‘‘(3) CONFORMANCE.—The Administrator and 

17 each agency head shall carry out this subsection in 

18 accordance with section 6002. 

19 ‘‘(c) FULL IMPLEMENTATION STUDY.— 

20 ‘‘(1) IN GENERAL.—The Administrator, in co21 operation with the Secretary of Transportation and 

22 the Secretary of Energy, shall conduct a study to de23 termine the extent to which current procurement re24 quirements, when fully implemented in accordance 

25 with subsection (b), may realize energy savings and 
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1 environmental benefits attainable with substitution of 

2 recovered mineral component in cement used in ce3 ment or concrete projects. 

4 ‘‘(2) MATTERS TO BE ADDRESSED.—The study 

5 shall— 

6 ‘‘(A) quantify the extent to which recovered 

7 mineral components are being substituted for 

8 Portland cement, particularly as a result of cur9 rent procurement requirements, and the energy 

10 savings and environmental benefits associated 

11 with that substitution; 

12 ‘‘(B) identify all barriers in procurement 

13 requirements to greater realization of energy sav14 ings and environmental benefits, including bar15 riers resulting from exceptions from current law; 

16 and 

17 ‘‘(C)(i) identify potential mechanisms to 

18 achieve greater substitution of recovered mineral 

19 component in types of cement or concrete projects 

20 for which recovered mineral components histori21 cally have not been used or have been used only 

22 minimally; 

23 ‘‘(ii) evaluate the feasibility of establishing 

24 guidelines or standards for optimized substi-
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1 tution rates of recovered mineral component in 

2 those cement or concrete projects; and 

3 ‘‘(iii) identify any potential environmental 

4 or economic effects that may result from greater 

5 substitution of recovered mineral component in 

6 those cement or concrete projects. 

7 ‘‘(3) REPORT.—Not later than 30 months after 

8 the date of enactment of this section, the Adminis9 trator shall submit to Congress a report on the study. 

10 ‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.— 

11 Unless the study conducted under subsection (c) identifies 

12 any effects or other problems described in subsection 

13 (c)(2)(C)(iii) that warrant further review or delay, the Ad14 ministrator and each agency head shall, not later than 1 

15 year after the release of the report in accordance with sub16 section (c)(3), take additional actions authorized under this 

17 Act to establish procurement requirements and incentives 

18 that provide for the use of cement and concrete with in19 creased substitution of recovered mineral component in the 

20 construction and maintenance of cement or concrete 

21 projects, so as to— 

22 ‘‘(1) realize more fully the energy savings and 

23 environmental benefits associated with increased sub24 stitution; and 
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1 ‘‘(2) eliminate barriers identified under sub2 section (c). 

3 ‘‘(e) EFFECT OF SECTION.—Nothing in this section af4 fects the requirements of section 6002 (including the guide5 lines and specifications for implementing those require6 ments).’’. 

7 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

8 contents in section 1001 of the Solid Waste Disposal Act 

9 (42 U.S.C. prec. 6901) is amended by adding after the item 

10 relating to section 6004 the following: 

‘‘Sec. 6005. Increased use of recovered mineral component in federally funded 

projects involving procurement of cement or concrete.’’. 

11 SEC. 8002. USE OF GRANULAR MINE TAILINGS. 

12 (a) IN GENERAL.—Subtitle F of the Solid Waste Dis13 posal Act (42 U.S.C. 6961 et seq.) (as amended by section 

14 8001(a)) is amended by adding at the end the following: 

15 ‘‘SEC. 6006. USE OF GRANULAR MINE TAILINGS. 

16 ‘‘(a) MINE TAILINGS.— 

17 ‘‘(1) IN GENERAL.—Not later than 180 days 

18 after the date of enactment of this section, the Admin19 istrator, in consultation with the Secretary of Trans20 portation and heads of other Federal agencies, shall 

21 establish criteria (including an evaluation of whether 

22 to establish a numerical standard for concentration of 

23 lead and other hazardous substances) for the safe and 

24 environmentally protective use of granular mine 
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1 tailings from the Tar Creek, Oklahoma Mining Dis2 trict, known as ‘chat’, for— 

3 ‘‘(A) cement or concrete projects; and 

4 ‘‘(B) transportation construction projects 

5 (including transportation construction projects 

6 involving the use of asphalt) that are carried 

7 out, in whole or in part, using Federal funds. 

8 ‘‘(2) REQUIREMENTS.—In establishing criteria 

9 under paragraph (1), the Administrator shall con10 sider— 

11 ‘‘(A) the current and previous uses of 

12 granular mine tailings as an aggregate for as13 phalt; and 

14 ‘‘(B) any environmental and public health 

15 risks and benefits derived from the removal, 

16 transportation, and use in transportation 

17 projects of granular mine tailings. 

18 ‘‘(3) PUBLIC PARTICIPATION.—In establishing 

19 the criteria under paragraph (1), the Administrator 

20 shall solicit and consider comments from the public. 

21 ‘‘(4) APPLICABILITY OF CRITERIA.—On the es22 tablishment of the criteria under paragraph (1), any 

23 use of the granular mine tailings described in para24 graph (1) in a transportation project that is carried 
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1 out, in whole or in part, using Federal funds, shall 

2 meet the criteria established under paragraph (1). 

3 ‘‘(b) EFFECT OF SECTIONS.—Nothing in this section 

4 or section 6005 affects any requirement of any law (includ5 ing a regulation) in effect on the date of enactment of this 

6 section.’’. 

7 (b) CONFORMING AMENDMENT.—The table of contents 

8 in section 1001 of the Solid Waste Disposal Act (42 U.S.C. 

9 prec. 6901) (as amended by section 8001(b)) is amended 

10 by adding after the item relating to section 6005 the fol11 lowing: 

‘‘Sec. 6006. Use of granular mine tailings.’’. 

Attest: 

Secretary. 

108TH CONGRESS 

2D SESSION H. R. 3550 

AMENDMENT