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[112th Congress Public Law 141]
[From the U.S. Government Printing Office]

[[Page 126 STAT. 405]]

Public Law 112-141
112th Congress

                                 An Act

 
 To authorize funds for Federal-aid highways, highway safety programs, 
     and transit programs, and for other purposes. <<NOTE: July 6, 
                         2012 -  [H.R. 4348]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Moving Ahead for 
Progress in the 21st Century Act. State and local governments.>> 
SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE 
                              OF CONTENTS.

    (a) <<NOTE: 23 USC 101 note.>> Short Title.--This Act may be cited 
as the ``Moving Ahead for Progress in the 21st Century Act'' or the 
``MAP-21''.

    (b) Divisions.--This Act is organized into 8 divisions as follows:
            (1) Division A-Federal-aid Highways and Highway Safety 
        Construction Programs.
            (2) Division B-Public Transportation.
            (3) Division C-Transportation Safety and Surface 
        Transportation Policy.
            (4) Division D-Finance.
            (5) Division E-Research and Education.
            (6) Division F-Miscellaneous.
            (7) Division G-Surface Transportation Extension.
            (8) Division H-Budgetary Effects.

    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; organization of Act into divisions; table of 
           contents.
Sec. 2. Definitions.
Sec. 3. Effective date.

    DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Definitions.
Sec. 1104. National Highway System.
Sec. 1105. Apportionment.
Sec. 1106. National highway performance program.
Sec. 1107. Emergency relief.
Sec. 1108. Surface transportation program.
Sec. 1109. Workforce development.
Sec. 1110. Highway use tax evasion projects.
Sec. 1111. National bridge and tunnel inventory and inspection 
           standards.
Sec. 1112. Highway safety improvement program.
Sec. 1113. Congestion mitigation and air quality improvement program.
Sec. 1114. Territorial and Puerto Rico highway program.
Sec. 1115. National freight policy.
Sec. 1116. Prioritization of projects to improve freight movement.
Sec. 1117. State freight advisory committees.

[[Page 126 STAT. 406]]

Sec. 1118. State freight plans.
Sec. 1119. Federal lands and tribal transportation programs.
Sec. 1120. Projects of national and regional significance.
Sec. 1121. Construction of ferry boats and ferry terminal facilities.
Sec. 1122. Transportation alternatives.
Sec. 1123. Tribal high priority projects program.

                   Subtitle B--Performance Management

Sec. 1201. Metropolitan transportation planning.
Sec. 1202. Statewide and nonmetropolitan transportation planning.
Sec. 1203. National goals and performance management measures.

              Subtitle C--Acceleration of Project Delivery

Sec. 1301. Declaration of policy and project delivery initiative.
Sec. 1302. Advance acquisition of real property interests.
Sec. 1303. Letting of contracts.
Sec. 1304. Innovative project delivery methods.
Sec. 1305. Efficient environmental reviews for project decisionmaking.
Sec. 1306. Accelerated decisionmaking.
Sec. 1307. Assistance to affected Federal and State agencies.
Sec. 1308. Limitations on claims.
Sec. 1309. Accelerating completion of complex projects within 4 years.
Sec. 1310. Integration of planning and environmental review.
Sec. 1311. Development of programmatic mitigation plans.
Sec. 1312. State assumption of responsibility for categorical 
           exclusions.
Sec. 1313. Surface transportation project delivery program.
Sec. 1314. Application of categorical exclusions for multimodal 
           projects.
Sec. 1315. Categorical exclusions in emergencies.
Sec. 1316. Categorical exclusions for projects within the right-of-way.
Sec. 1317. Categorical exclusion for projects of limited Federal 
           assistance.
Sec. 1318. Programmatic agreements and additional categorical 
           exclusions.
Sec. 1319. Accelerated decisionmaking in environmental reviews.
Sec. 1320. Memoranda of agency agreements for early coordination.
Sec. 1321. Environmental procedures initiative.
Sec. 1322. Review of State environmental reviews and approvals for the 
           purpose of eliminating duplication of environmental reviews.
Sec. 1323. Review of Federal project and program delivery.

                       Subtitle D--Highway Safety

Sec. 1401. Jason's law.
Sec. 1402. Open container requirements.
Sec. 1403. Minimum penalties for repeat offenders for driving while 
           intoxicated or driving under the influence.
Sec. 1404. Adjustments to penalty provisions.
Sec. 1405. Highway worker safety.

                        Subtitle E--Miscellaneous

Sec. 1501. Real-time ridesharing.
Sec. 1502. Program efficiencies.
Sec. 1503. Project approval and oversight.
Sec. 1504. Standards.
Sec. 1505. Justification reports for access points on the Interstate 
           System.
Sec. 1506. Construction.
Sec. 1507. Maintenance.
Sec. 1508. Federal share payable.
Sec. 1509. Transferability of Federal-aid highway funds.
Sec. 1510. Idle reduction technology.
Sec. 1511. Special permits during periods of national emergency.
Sec. 1512. Tolling.
Sec. 1513. Miscellaneous parking amendments.
Sec. 1514. HOV facilities.
Sec. 1515. Funding flexibility for transportation emergencies.
Sec. 1516. Defense access road program enhancements to address 
           transportation infrastructure in the vicinity of military 
           installations.
Sec. 1517. Mapping.
Sec. 1518. Buy America provisions.
Sec. 1519. Consolidation of programs; repeal of obsolete provisions.
Sec. 1520. Denali Commission.
Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition 
           Policies Act of 1970 amendments.
Sec. 1522. Extension of public transit vehicle exemption from axle 
           weight restrictions.

[[Page 126 STAT. 407]]

Sec. 1523. Use of debris from demolished bridges and overpasses.
Sec. 1524. Use of youth service and conservation corps.
Sec. 1525. State autonomy for culvert pipe selection.
Sec. 1526. Evacuation routes.
Sec. 1527. Consolidation of grants.
Sec. 1528. Appalachian development highway system.
Sec. 1529. Engineering judgment.
Sec. 1530. Transportation training and employment programs.
Sec. 1531. Notice of certain grant awards.
Sec. 1532. Budget justification.
Sec. 1533. Prohibition on use of funds for automated traffic 
           enforcement.
Sec. 1534. Public-private partnerships.
Sec. 1535. Report on Highway Trust Fund expenditures.
Sec. 1536. Sense of Congress on harbor maintenance.
Sec. 1537. Estimate of harbor maintenance needs.
Sec. 1538. Asian carp.
Sec. 1539. Rest areas.

                   Subtitle F--Gulf Coast Restoration

Sec. 1601. Short title.
Sec. 1602. Gulf Coast Restoration Trust Fund.
Sec. 1603. Gulf Coast natural resources restoration and economic 
           recovery.
Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation, 
           Monitoring, and Technology program.
Sec. 1605. Centers of excellence research grants.
Sec. 1606. Effect.
Sec. 1607. Restoration and protection activity limitations.
Sec. 1608. Inspector General.

           TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

Sec. 2001. Short title.
Sec. 2002. Transportation Infrastructure Finance and Innovation Act of 
           1998 amendments.

                    DIVISION B--PUBLIC TRANSPORTATION

Sec. 20001. Short title.
Sec. 20002. Repeals.
Sec. 20003. Policies and purposes.
Sec. 20004. Definitions.
Sec. 20005. Metropolitan transportation planning.
Sec. 20006. Statewide and nonmetropolitan transportation planning.
Sec. 20007. Urbanized area formula grants.
Sec. 20008. Fixed guideway capital investment grants.
Sec. 20009. Mobility of seniors and individuals with disabilities.
Sec. 20010. Formula grants for rural areas.
Sec. 20011. Research, development, demonstration, and deployment 
           projects.
Sec. 20012. Technical assistance and standards development.
Sec. 20013. Private sector participation.
Sec. 20014. Bus testing facilities.
Sec. 20015. Human resources and training.
Sec. 20016. General provisions.
Sec. 20017. Public Transportation Emergency Relief Program.
Sec. 20018. Contract requirements.
Sec. 20019. Transit asset management.
Sec. 20020. Project management oversight.
Sec. 20021. Public transportation safety.
Sec. 20022. Alcohol and controlled substances testing.
Sec. 20023. Nondiscrimination.
Sec. 20024. Administrative provisions.
Sec. 20025. National transit database.
Sec. 20026. Apportionment of appropriations for formula grants.
Sec. 20027. State of good repair grants.
Sec. 20028. Authorizations.
Sec. 20029. Bus and bus facilities formula grants.
Sec. 20030. Technical and conforming amendments.

   DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

    TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012

Sec. 31001. Short title.

[[Page 126 STAT. 408]]

Sec. 31002. Definition.

                       Subtitle A--Highway Safety

Sec. 31101. Authorization of appropriations.
Sec. 31102. Highway safety programs.
Sec. 31103. Highway safety research and development.
Sec. 31104. National driver register.
Sec. 31105. National priority safety programs.
Sec. 31106. High visibility enforcement program.
Sec. 31107. Agency accountability.
Sec. 31108. Emergency medical services.
Sec. 31109. Repeal of programs.

                 Subtitle B--Enhanced Safety Authorities

Sec. 31201. Definition of motor vehicle equipment.
Sec. 31202. Permit reminder system for non-use of safety belts.
Sec. 31203. Civil penalties.
Sec. 31204. Motor vehicle safety research and development.
Sec. 31205. Odometer requirements.
Sec. 31206. Increased penalties and damages for odometer fraud.
Sec. 31207. Extend prohibitions on importing noncompliant vehicles and 
           equipment to defective vehicles and equipment.
Sec. 31208. Conditions on importation of vehicles and equipment.
Sec. 31209. Port inspections; samples for examination or testing.

               Subtitle C--Transparency and Accountability

Sec. 31301. Public availability of recall information.
Sec. 31302. National Highway Traffic Safety Administration outreach to 
           manufacturer, dealer, and mechanic personnel.
Sec. 31303. Public availability of communications to dealers.
Sec. 31304. Corporate responsibility for National Highway Traffic Safety 
           Administration reports.
Sec. 31305. Passenger motor vehicle information program.
Sec. 31306. Promotion of vehicle defect reporting.
Sec. 31307. Whistleblower protections for motor vehicle manufacturers, 
           part suppliers, and dealership employees.
Sec. 31308. Anti-revolving door.
Sec. 31309. Study of crash data collection.
Sec. 31310. Update means of providing notification; improving efficacy 
           of recalls.
Sec. 31311. Expanding choices of remedy available to manufacturers of 
           replacement equipment.
Sec. 31312. Recall obligations and bankruptcy of manufacturer.
Sec. 31313. Repeal of insurance reports and information provision.
Sec. 31314. Monroney sticker to permit additional safety rating 
           categories.

          Subtitle D--Vehicle Electronics and Safety Standards

Sec. 31401. National Highway Traffic Safety Administration electronics, 
           software, and engineering expertise.
Sec. 31402. Electronic systems performance.

                   Subtitle E--Child Safety Standards

Sec. 31501. Child safety seats.
Sec. 31502. Child restraint anchorage systems.
Sec. 31503. Rear seat belt reminders.
Sec. 31504. Unattended passenger reminders.
Sec. 31505. New deadline.

 Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural 
                                Equipment

Sec. 31601. Rulemaking on visibility of agricultural equipment.

    TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012

Sec. 32001. Short title.
Sec. 32002. References to title 49, United States Code.

            Subtitle A--Commercial Motor Vehicle Registration

Sec. 32101. Registration of motor carriers.
Sec. 32102. Safety fitness of new operators.
Sec. 32103. Reincarnated carriers.

[[Page 126 STAT. 409]]

Sec. 32104. Financial responsibility requirements.
Sec. 32105. USDOT number registration requirement.
Sec. 32106. Registration fee system.
Sec. 32107. Registration update.
Sec. 32108. Increased penalties for operating without registration.
Sec. 32109. Revocation of registration for imminent hazard.
Sec. 32110. Revocation of registration and other penalties for failure 
           to respond to subpoena.
Sec. 32111. Fleetwide out of service order for operating without 
           required registration.
Sec. 32112. Motor carrier and officer patterns of safety violations.

               Subtitle B--Commercial Motor Vehicle Safety

Sec. 32201. Crashworthiness standards.
Sec. 32202. Canadian safety rating reciprocity.
Sec. 32203. State reporting of foreign commercial driver convictions.
Sec. 32204. Authority to disqualify foreign commercial drivers.
Sec. 32205. Revocation of foreign motor carrier operating authority for 
           failure to pay civil penalties.
Sec. 32206. Rental truck accident study.

                        Subtitle C--Driver Safety

Sec. 32301. Hours of service study and electronic logging devices.
Sec. 32302. Driver medical qualifications.
Sec. 32303. Commercial driver's license notification system.
Sec. 32304. Commercial motor vehicle operator training.
Sec. 32305. Commercial driver's license program.
Sec. 32306. Commercial motor vehicle driver information systems.
Sec. 32307. Employer responsibilities.
Sec. 32308. Program to assist Veterans to acquire commercial driver's 
           licenses.

                   Subtitle D--Safe Roads Act of 2012

Sec. 32401. Short title.
Sec. 32402. National clearinghouse for controlled substance and alcohol 
           test results of commercial motor vehicle operators.

                         Subtitle E--Enforcement

Sec. 32501. Inspection demand and display of credentials.
Sec. 32502. Out of service penalty for denial of access to records.
Sec. 32503. Penalties for violation of operation out of service orders.
Sec. 32504. Impoundment and immobilization of commercial motor vehicles 
           for imminent hazard.
Sec. 32505. Increased penalties for evasion of regulations.
Sec. 32506. Violations relating to commercial motor vehicle safety 
           regulation and operators.
Sec. 32507. Emergency disqualification for imminent hazard.
Sec. 32508. Disclosure to State and local law enforcement agencies.
Sec. 32509. Grade crossing safety regulations.

             Subtitle F--Compliance, Safety, Accountability

Sec. 32601. Motor carrier safety assistance program.
Sec. 32602. Performance and registration information systems management 
           program.
Sec. 32603. Authorization of appropriations.
Sec. 32604. Grants for commercial driver's license program 
           implementation.
Sec. 32605. Commercial vehicle information systems and networks.

           Subtitle G--Motorcoach Enhanced Safety Act of 2012

Sec. 32701. Short title.
Sec. 32702. Definitions.
Sec. 32703. Regulations for improved occupant protection, passenger 
           evacuation, and crash avoidance.
Sec. 32704. Fire prevention and mitigation.
Sec. 32705. Occupant protection, collision avoidance, fire causation, 
           and fire extinguisher research and testing.
Sec. 32706. Concurrence of research and rulemaking.
Sec. 32707. Improved oversight of motorcoach service providers.
Sec. 32708. Report on feasibility, benefits, and costs of establishing a 
           system of certification of training programs.
Sec. 32709. Commercial driver's license passenger endorsement 
           requirements.

[[Page 126 STAT. 410]]

Sec. 32710. Safety inspection program for commercial motor vehicles of 
           passengers.
Sec. 32711. Regulations.

        Subtitle H--Safe Highways and Infrastructure Preservation

Sec. 32801. Comprehensive truck size and weight limits study.
Sec. 32802. Compilation of existing State truck size and weight limit 
           laws.

                        Subtitle I--Miscellaneous

                          PART I--Miscellaneous

Sec. 32911. Prohibition of coercion.
Sec. 32912. Motor carrier safety advisory committee.
Sec. 32913. Waivers, exemptions, and pilot programs.
Sec. 32914. Registration requirements.
Sec. 32915. Additional motor carrier registration requirements.
Sec. 32916. Registration of freight forwarders and brokers.
Sec. 32917. Effective periods of registration.
Sec. 32918. Financial security of brokers and freight forwarders.
Sec. 32919. Unlawful brokerage activities.

                 PART II--Household Goods Transportation

Sec. 32921. Additional registration requirements for household goods 
           motor carriers.
Sec. 32922. Failure to give up possession of household goods.
Sec. 32923. Settlement authority.

                     PART III--Technical Amendments

Sec. 32931. Update of obsolete text.
Sec. 32932. Correction of interstate commerce commission references.
Sec. 32933. Technical and conforming amendments.
Sec. 32934. Exemptions from requirements for covered farm vehicles.

TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF 
                                  2012

Sec. 33001. Short title.
Sec. 33002. Definition.
Sec. 33003. References to title 49, United States Code.
Sec. 33004. Training for emergency responders.
Sec. 33005. Paperless Hazard Communications Pilot Program.
Sec. 33006. Improving data collection, analysis, and reporting.
Sec. 33007. Hazardous material technical assessment, research and 
           development, and analysis program.
Sec. 33008. Hazardous Material Enforcement Training.
Sec. 33009. Inspections.
Sec. 33010. Civil penalties.
Sec. 33011. Reporting of fees.
Sec. 33012. Special permits, approvals, and exclusions.
Sec. 33013. Highway routing disclosures.
Sec. 33014. Motor carrier safety permits.
Sec. 33015. Wetlines.
Sec. 33016. Hazmat employee training requirements and grants.
Sec. 33017. Authorization of appropriations.

TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF 
                                  2012

Sec. 34001. Short title.
Sec. 34002. Amendment of Federal Aid in Sport Fish Restoration Act.

                         TITLE V--MISCELLANEOUS

Sec. 35001. Overflights in Grand Canyon National Park.
Sec. 35002. Commercial air tour operations.
Sec. 35003. Qualifications for public aircraft status.

                           DIVISION D--FINANCE

Sec. 40001. Short title.

   TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                              RELATED TAXES

Sec. 40101. Extension of trust fund expenditure authority.

[[Page 126 STAT. 411]]

Sec. 40102. Extension of highway-related taxes.

                      TITLE II--REVENUE PROVISIONS

         Subtitle A--Leaking Underground Storage Tank Trust Fund

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

                     Subtitle B--Pension Provisions

                  PART I--Pension Funding Stabilization

Sec. 40211. Pension funding stabilization.

                         PART II--PBGC Premiums

Sec. 40221. Single employer plan annual premium rates.
Sec. 40222. Multiemployer annual premium rates.

                     PART III--Improvements of PBGC

Sec. 40231. Pension Benefit Guaranty Corporation Governance Improvement.
Sec. 40232. Participant and plan sponsor advocate.
Sec. 40233. Quality control procedures for the Pension Benefit Guaranty 
           Corporation.
Sec. 40234. Line of credit repeal.

               PART IV--Transfers of Excess Pension Assets

Sec. 40241. Extension for transfers of excess pension assets to retiree 
           health accounts.
Sec. 40242. Transfer of excess pension assets to retiree group term life 
           insurance accounts.

         Subtitle C--Additional Transfers to Highway Trust Fund

Sec. 40251. Additional transfers to Highway Trust Fund.

                   DIVISION E--RESEARCH AND EDUCATION

Sec. 50001. Short title.

                            TITLE I--FUNDING

Sec. 51001. Authorization of appropriations.

              TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

Sec. 52001. Research, technology, and education.
Sec. 52002. Surface transportation research, development, and 
           technology.
Sec. 52003. Research and technology development and deployment.
Sec. 52004. Training and education.
Sec. 52005. State planning and research.
Sec. 52006. International highway transportation program.
Sec. 52007. Surface transportation environmental cooperative research 
           program.
Sec. 52008. National cooperative freight research.
Sec. 52009. University transportation centers program.
Sec. 52010. University transportation research.
Sec. 52011. Bureau of Transportation Statistics.
Sec. 52012. Administrative authority.
Sec. 52013. Transportation research and development strategic planning.

         TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

Sec. 53001. Use of funds for ITS activities.
Sec. 53002. Goals and purposes.
Sec. 53003. General authorities and requirements.
Sec. 53004. Research and development.
Sec. 53005. National architecture and standards.
Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure 
           communications systems deployment.

                        DIVISION F--MISCELLANEOUS

              TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

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

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

              Subtitle B--Payment in Lieu of Taxes Program

Sec. 100111. Payments in lieu of taxes.

[[Page 126 STAT. 412]]

                           Subtitle C--Offsets

Sec. 100121. Phased retirement authority.
Sec. 100122. Roll-your-own cigarette machines.
Sec. 100123. Change in FMAP increase for disaster recovery states.
Sec. 100124. Repeals.
Sec. 100125. Limitation on payments from the Abandoned Mine Reclamation 
           Fund.

                        TITLE II--FLOOD INSURANCE

          Subtitle A--Flood Insurance Reform and Modernization

Sec. 100201. Short title.
Sec. 100202. Definitions.
Sec. 100203. Extension of National Flood Insurance Program.
Sec. 100204. Availability of insurance for multifamily properties.
Sec. 100205. Reform of premium rate structure.
Sec. 100207. Premium adjustment.
Sec. 100208. Enforcement.
Sec. 100209. Escrow of flood insurance payments.
Sec. 100210. Minimum deductibles for claims under the National Flood 
           Insurance Program.
Sec. 100211. Considerations in determining chargeable premium rates.
Sec. 100212. Reserve fund.
Sec. 100213. Repayment plan for borrowing authority.
Sec. 100214. Payment of condominium claims.
Sec. 100215. Technical mapping advisory council.
Sec. 100216. National flood mapping program.
Sec. 100217. Scope of appeals.
Sec. 100218. Scientific Resolution Panel.
Sec. 100219. Removal of limitation on State contributions for updating 
           flood maps.
Sec. 100220. Coordination.
Sec. 100221. Interagency coordination study.
Sec. 100222. Notice of flood insurance availability under RESPA.
Sec. 100223. Participation in State disaster claims mediation programs.
Sec. 100224. Oversight and expense reimbursements of insurance 
           companies.
Sec. 100225. Mitigation.
Sec. 100226. Flood Protection Structure Accreditation Task Force.
Sec. 100227. Flood in progress determinations.
Sec. 100228. Clarification of residential and commercial coverage 
           limits.
Sec. 100229. Local data requirement.
Sec. 100230. Eligibility for flood insurance for persons residing in 
           communities that have made adequate progress on the 
           reconstruction or improvement of a flood protection system.
Sec. 100231. Studies and reports.
Sec. 100232. Reinsurance.
Sec. 100233. GAO study on business interruption and additional living 
           expenses coverages.
Sec. 100234. Policy disclosures.
Sec. 100235. Report on inclusion of building codes in floodplain 
           management criteria.
Sec. 100236. Study of participation and affordability for certain 
           policyholders.
Sec. 100237. Study and report concerning the participation of Indian 
           tribes and members of Indian tribes in the National Flood 
           Insurance Program.
Sec. 100238. Technical corrections.
Sec. 100239. Use of private insurance to satisfy mandatory purchase 
           requirement.
Sec. 100240. Levees constructed on certain properties.
Sec. 100241. Insurance coverage for private properties affected by 
           flooding from Federal lands.
Sec. 100242. Permissible land use under Federal flood insurance plan.
Sec. 100243. CDBG eligibility for flood insurance outreach activities 
           and community building code administration grants.
Sec. 100244. Termination of force-placed insurance.
Sec. 100245. FEMA authority on transfer of policies.
Sec. 100246. Reimbursement of certain expenses.
Sec. 100247. FIO study on risks, hazards, and insurance.
Sec. 100248. Flood protection improvements constructed on certain 
           properties.
Sec. 100249. No cause of action.

                 Subtitle B--Alternative Loss Allocation

Sec. 100251. Short title.
Sec. 100252. Assessing and modeling named storms over coastal States.
Sec. 100253. Alternative loss allocation system for indeterminate 
           claims.

[[Page 126 STAT. 413]]

                    Subtitle C--HEARTH Act Amendment

Sec. 100261. HEARTH Act technical corrections.

             TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

Sec. 100301. Federal Direct Stafford Loan interest rate extension.
Sec. 100302. Eligibility for, and interest charges on, Federal Direct 
           Stafford Loans for new borrowers on or after July 1, 2013.

              DIVISION G--SURFACE TRANSPORTATION EXTENSION

Sec. 110001. Short title.

                      TITLE I--FEDERAL-AID HIGHWAYS

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

             TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

Sec. 112001. Extension of National Highway Traffic Safety Administration 
           highway safety programs.
Sec. 112002. Extension of Federal Motor Carrier Safety Administration 
           programs.
Sec. 112003. Additional programs.

                TITLE III--PUBLIC TRANSPORTATION PROGRAMS

Sec. 113001. Allocation of funds for planning programs.
Sec. 113002. Special rule for urbanized area formula grants.
Sec. 113003. Allocating amounts for capital investment grants.
Sec. 113004. Apportionment of formula grants for other than urbanized 
           areas.
Sec. 113005. Apportionment based on fixed guideway factors.
Sec. 113006. Authorizations for public transportation.
Sec. 113007. Amendments to SAFETEA-LU.

                        TITLE IV--EFFECTIVE DATE

Sec. 114001. Effective date.

                      DIVISION H--BUDGETARY EFFECTS

Sec. 120001. Budgetary effects.

SEC. 2. <<NOTE: 23 USC 101 note.>> DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Department.--The term ``Department'' means the 
        Department of Transportation.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
SEC. 3. EFFECTIVE DATE.

    (a) <<NOTE: 23 USC 101 note.>> In General.--Except as otherwise 
provided, divisions A, B, C (other than sections 32603(d), 32603(g), 
32912, and 34002 of that division) and E, including the amendments made 
by those divisions, take effect on October 1, 2012.

    (b) <<NOTE: 23 USC 101 note.>> References.--Except as otherwise 
provided, any reference to the date of enactment of the MAP-21 or to the 
date of enactment of the Federal Public Transportation Act of 2012 in 
the divisions described in subsection (a) or in an amendment made by 
those divisions shall be deemed to be a reference to the effective date 
of those divisions.

[[Page 126 STAT. 414]]

    DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Federal-aid highway program.--For the national highway 
        performance program under section 119 of title 23, United States 
        Code, the surface transportation program under section 133 of 
        that title, the highway safety improvement program under section 
        148 of that title, the congestion mitigation and air quality 
        improvement program under section 149 of that title, and to 
        carry out section 134 of that title--
                    (A) $37,476,819,674 for fiscal year 2013; and
                    (B) $37,798,000,000 for fiscal year 2014.
            (2) Transportation infrastructure finance and innovation 
        program.--For credit assistance under the transportation 
        infrastructure finance and innovation program under chapter 6 of 
        title 23, United States Code--
                    (A) $750,000,000 for fiscal year 2013; and
                    (B) $1,000,000,000 for fiscal year 2014.
            (3) Federal lands and tribal transportation programs.--
                    (A) Tribal transportation program.--For the tribal 
                transportation program under section 202 of title 23, 
                United States Code, $450,000,000 for each of fiscal 
                years 2013 and 2014.
                    (B) Federal lands transportation program.--For the 
                Federal lands transportation program under section 203 
                of title 23, United States Code, $300,000,000 for each 
                of fiscal years 2013 and 2014, of which $240,000,000 of 
                the amount made available for each fiscal year shall be 
                the amount for the National Park Service and $30,000,000 
                of the amount made available for each fiscal year shall 
                be the amount for the United States Fish and Wildlife 
                Service.
                    (C) Federal lands access program.--For the Federal 
                lands access program under section 204 of title 23, 
                United States Code, $250,000,000 for each of fiscal 
                years 2013 and 2014.
            (4) Territorial and puerto rico highway program.--For the 
        territorial and Puerto Rico highway program under section 165 of 
        title 23, United States Code, $190,000,000 for each of fiscal 
        years 2013 and 2014.

    (b) <<NOTE: 23 USC 101 note.>> Disadvantaged Business Enterprises.--
            (1) Findings.--Congress finds that--
                    (A) while significant progress has occurred due to 
                the establishment of the disadvantaged business 
                enterprise

[[Page 126 STAT. 415]]

                program, discrimination and related barriers continue to 
                pose significant obstacles for minority- and women-owned 
                businesses seeking to do business in federally-assisted 
                surface transportation markets across the United States;
                    (B) the continuing barriers described in 
                subparagraph (A) merit the continuation of the 
                disadvantaged business enterprise program;
                    (C) Congress has received and reviewed testimony and 
                documentation of race and gender discrimination from 
                numerous sources, including congressional hearings and 
                roundtables, scientific reports, reports issued by 
                public and private agencies, news stories, reports of 
                discrimination by organizations and individuals, and 
                discrimination lawsuits, which show that race- and 
                gender-neutral efforts alone are insufficient to address 
                the problem;
                    (D) the testimony and documentation described in 
                subparagraph (C) demonstrate that discrimination across 
                the United States poses a barrier to full and fair 
                participation in surface transportation-related 
                businesses of women business owners and minority 
                business owners and has impacted firm development and 
                many aspects of surface transportation-related business 
                in the public and private markets; and
                    (E) the testimony and documentation described in 
                subparagraph (C) provide a strong basis that there is a 
                compelling need for the continuation of the 
                disadvantaged business enterprise program to address 
                race and gender discrimination in surface 
                transportation-related business.
            (2) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Small business concern.--
                          (i) In general.--The term ``small business 
                      concern'' means a small business concern (as the 
                      term is used in section 3 of the Small Business 
                      Act (15 U.S.C. 632)).
                          (ii) Exclusions.--The term ``small business 
                      concern'' does not include any concern or group of 
                      concerns controlled by the same socially and 
                      economically disadvantaged individual or 
                      individuals that have average annual gross 
                      receipts during the preceding 3 fiscal years in 
                      excess of $22,410,000, as adjusted annually by the 
                      Secretary for inflation.
                    (B) Socially and economically disadvantaged 
                individuals.--The term ``socially and economically 
                disadvantaged individuals'' has the meaning given the 
                term in section 8(d) of the Small Business Act (15 
                U.S.C. 637(d)) and relevant subcontracting regulations 
                issued pursuant to that Act, except that women shall be 
                presumed to be socially and economically disadvantaged 
                individuals for purposes of this subsection.
            (3) Amounts for small business concerns.--Except to the 
        extent that the Secretary determines otherwise, not less than 10 
        percent of the amounts made available for any program under 
        divisions A and B of this Act and section 403 of title 23, 
        United States Code, shall be expended through small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals.

[[Page 126 STAT. 416]]

            (4) Annual listing of disadvantaged business enterprises.--
        Each State shall annually--
                    (A) survey and compile a list of the small business 
                concerns referred to in paragraph (2) in the State, 
                including the location of the small business concerns in 
                the State; and
                    (B) <<NOTE: Notification.>> notify the Secretary, in 
                writing, of the percentage of the small business 
                concerns that are controlled by--
                          (i) women;
                          (ii) socially and economically disadvantaged 
                      individuals (other than women); and
                          (iii) individuals who are women and are 
                      otherwise socially and economically disadvantaged 
                      individuals.
            (5) Uniform certification.--
                    (A) In general.--The Secretary shall establish 
                minimum uniform criteria for use by State governments in 
                certifying whether a concern qualifies as a small 
                business concern for the purpose of this subsection.
                    (B) Inclusions.--The minimum uniform criteria 
                established under subparagraph (A) shall include, with 
                respect to a potential small business concern--
                          (i) on-site visits;
                          (ii) personal interviews with personnel;
                          (iii) issuance or inspection of licenses;
                          (iv) analyses of stock ownership;
                          (v) listings of equipment;
                          (vi) analyses of bonding capacity;
                          (vii) listings of work completed;
                          (viii) examination of the resumes of principal 
                      owners;
                          (ix) analyses of financial capacity; and
                          (x) analyses of the type of work preferred.
            (6) Reporting.--The Secretary shall establish minimum 
        requirements for use by State governments in reporting to the 
        Secretary--
                    (A) information concerning disadvantaged business 
                enterprise awards, commitments, and achievements; and
                    (B) such other information as the Secretary 
                determines to be appropriate for the proper monitoring 
                of the disadvantaged business enterprise program.
            (7) Compliance with court orders.--Nothing in this 
        subsection limits the eligibility of an individual or entity to 
        receive funds made available under divisions A and B of this Act 
        and section 403 of title 23, United States Code, if the entity 
        or person is prevented, in whole or in part, from complying with 
        paragraph (2) because a Federal court issues a final order in 
        which the court finds that a requirement or the implementation 
        of paragraph (2) is unconstitutional. 
SEC. 1102. <<NOTE: 23 USC 104 note.>> OBLIGATION CEILING.

    (a) General Limitation.--Subject to subsection (e), and 
notwithstanding any other provision of law, the obligations for Federal-
aid highway and highway safety construction programs shall not exceed--
            (1) $39,699,000,000 for fiscal year 2013; and
            (2) $40,256,000,000 for fiscal year 2014.

[[Page 126 STAT. 417]]

    (b) Exceptions.--The limitations under subsection (a) shall not 
apply to obligations under or for--
            (1) section 125 of title 23, United States Code;
            (2) section 147 of the Surface Transportation Assistance Act 
        of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
            (3) section 9 of the Federal-Aid Highway Act of 1981 (95 
        Stat. 1701);
            (4) subsections (b) and (j) of section 131 of the Surface 
        Transportation Assistance Act of 1982 (96 Stat. 2119);
            (5) subsections (b) and (c) of section 149 of the Surface 
        Transportation and Uniform Relocation Assistance Act of 1987 
        (101 Stat. 198);
            (6) sections 1103 through 1108 of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (105 Stat. 2027);
            (7) section 157 of title 23, United States Code (as in 
        effect on June 8, 1998);
            (8) section 105 of title 23, United States Code (as in 
        effect for fiscal years 1998 through 2004, but only in an amount 
        equal to $639,000,000 for each of those fiscal years);
            (9) Federal-aid highway programs for which obligation 
        authority was made available under the Transportation Equity Act 
        for the 21st Century (112 Stat. 107) or subsequent Acts for 
        multiple years or to remain available until expended, but only 
        to the extent that the obligation authority has not lapsed or 
        been used;
            (10) section 105 of title 23, United States Code (but, for 
        each of fiscal years 2005 through 2011, only in an amount equal 
        to $639,000,000 for each of those fiscal years);
            (11) section 1603 of SAFETEA-LU (23 U.S.C. 118 note; 119 
        Stat. 1248), to the extent that funds obligated in accordance 
        with that section were not subject to a limitation on 
        obligations at the time at which the funds were initially made 
        available for obligation; and
            (12) section 119 of title 23, United States Code (but, for 
        each of fiscal years 2013 through 2014, only in an amount equal 
        to $639,000,000 for each of those fiscal years).

    (c) Distribution of Obligation Authority.--For each of fiscal years 
2013 through 2014, the Secretary--
            (1) shall not distribute obligation authority provided by 
        subsection (a) for the fiscal year for--
                    (A) amounts authorized for administrative expenses 
                and programs by section 104(a) of title 23, United 
                States Code; and
                    (B) amounts authorized for the Bureau of 
                Transportation Statistics;
            (2) shall not distribute an amount of obligation authority 
        provided by subsection (a) that is equal to the unobligated 
        balance of amounts--
                    (A) made available from the Highway Trust Fund 
                (other than the Mass Transit Account) for Federal-aid 
                highway and highway safety construction programs for 
                previous fiscal years the funds for which are allocated 
                by the Secretary (or apportioned by the Secretary under 
                sections 202 or 204 of title 23, United States Code); 
                and
                    (B) for which obligation authority was provided in a 
                previous fiscal year;
            (3) <<NOTE: Determination.>> shall determine the proportion 
        that--

[[Page 126 STAT. 418]]

                    (A) the obligation authority provided by subsection 
                (a) for the fiscal year, less the aggregate of amounts 
                not distributed under paragraphs (1) and (2) of this 
                subsection; bears to
                    (B) the total of the sums authorized to be 
                appropriated for the Federal-aid highway and highway 
                safety construction programs (other than sums authorized 
                to be appropriated for provisions of law described in 
                paragraphs (1) through (11) of subsection (b) and sums 
                authorized to be appropriated for section 119 of title 
                23, United States Code, equal to the amount referred to 
                in subsection (b)(12) for the fiscal year), less the 
                aggregate of the amounts not distributed under 
                paragraphs (1) and (2) of this subsection;
            (4) shall distribute the obligation authority provided by 
        subsection (a), less the aggregate amounts not distributed under 
        paragraphs (1) and (2), for each of the programs (other than 
        programs to which paragraph (1) applies) that are allocated by 
        the Secretary under this Act and title 23, United States Code, 
        or apportioned by the Secretary under sections 202 or 204 of 
        that title, by multiplying--
                    (A) the proportion determined under paragraph (3); 
                by
                    (B) the amounts authorized to be appropriated for 
                each such program for the fiscal year; and
            (5) shall distribute the obligation authority provided by 
        subsection (a), less the aggregate amounts not distributed under 
        paragraphs (1) and (2) and the amounts distributed under 
        paragraph (4), for Federal-aid highway and highway safety 
        construction programs that are apportioned by the Secretary 
        under title 23, United States Code (other than the amounts 
        apportioned for the national highway performance program in 
        section 119 of title 23, United States Code, that are exempt 
        from the limitation under subsection (b)(12) and the amounts 
        apportioned under section 204 of that title) in the proportion 
        that--
                    (A) amounts authorized to be appropriated for the 
                programs that are apportioned under title 23, United 
                States Code, to each State for the fiscal year; bears to
                    (B) the total of the amounts authorized to be 
                appropriated for the programs that are apportioned under 
                title 23, United States Code, to all States for the 
                fiscal year.

    (d) <<NOTE: Time period.>> Redistribution of Unused Obligation 
Authority.--Notwithstanding subsection (c), the Secretary shall, after 
August 1 of each of fiscal years 2013 through 2014--
            (1) revise a distribution of the obligation authority made 
        available under subsection (c) if an amount distributed cannot 
        be obligated during that fiscal year; and
            (2) redistribute sufficient amounts to those States able to 
        obligate amounts in addition to those previously distributed 
        during that fiscal year, giving priority to those States having 
        large unobligated balances of funds apportioned under sections 
        144 (as in effect on the day before the date of enactment of 
        this Act) and 104 of title 23, United States Code.

    (e) Applicability of Obligation Limitations to Transportation 
Research Programs.--
            (1) <<NOTE: Contracts.>> In general.--Except as provided in 
        paragraph (2), obligation limitations imposed by subsection (a) 
        shall apply

[[Page 126 STAT. 419]]

        to contract authority for transportation research programs 
        carried out under--
                    (A) chapter 5 of title 23, United States Code; and
                    (B) division E of this Act.
            (2) Exception.--Obligation authority made available under 
        paragraph (1) shall--
                    (A) <<NOTE: Time period.>> remain available for a 
                period of 4 fiscal years; and
                    (B) be in addition to the amount of any limitation 
                imposed on obligations for Federal-aid highway and 
                highway safety construction programs for future fiscal 
                years.

    (f) Redistribution of Certain Authorized Funds.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 30 days 
        after the date of distribution of obligation authority under 
        subsection (c) for each of fiscal years 2013 through 2014, the 
        Secretary shall distribute to the States any funds (excluding 
        funds authorized for the program under section 202 of title 23, 
        United States Code) that--
                    (A) are authorized to be appropriated for the fiscal 
                year for Federal-aid highway programs; and
                    (B) the Secretary determines will not be allocated 
                to the States (or will not be apportioned to the States 
                under section 204 of title 23, United States Code), and 
                will not be available for obligation, for the fiscal 
                year because of the imposition of any obligation 
                limitation for the fiscal year.
            (2) Ratio.--Funds shall be distributed under paragraph (1) 
        in the same proportion as the distribution of obligation 
        authority under subsection (c)(5).
            (3) Availability.--Funds distributed to each State under 
        paragraph (1) shall be available for any purpose described in 
        section 133(c) of title 23, United States Code. 
SEC. 1103. DEFINITIONS.

    (a) Definitions.--Section 101(a) of title 23, United States Code, is 
amended--
            (1) by striking paragraphs (6), (7), (9), (12), (19), (20), 
        (24), (25), (26), (28), (38), and (39);
            (2) by redesignating paragraphs (2), (3), (4), (5), (8), 
        (13), (14), (15), (16), (17), (18), (21), (22), (23), (27), 
        (29), (30), (31), (32), (33), (34), (35), (36), and (37) as 
        paragraphs (3), (4), (5), (6), (9), (12), (13), (14), (15), 
        (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
        (26), (28), (29), (33), and (34), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Asset management.--The term `asset management' means a 
        strategic and systematic process of operating, maintaining, and 
        improving physical assets, with a focus on both engineering and 
        economic analysis based upon quality information, to identify a 
        structured sequence of maintenance, preservation, repair, 
        rehabilitation, and replacement actions that will achieve and 
        sustain a desired state of good repair over the lifecycle of the 
        assets at minimum practicable cost.'';
            (4) in paragraph (4) (as redesignated by paragraph (2))--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or any project eligible for assistance under 
                this title'' after ``of a highway'';

[[Page 126 STAT. 420]]

                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) preliminary engineering, engineering, and 
                design-related services directly relating to the 
                construction of a highway project, including 
                engineering, design, project development and management, 
                construction project management and inspection, 
                surveying, mapping (including the establishment of 
                temporary and permanent geodetic control in accordance 
                with specifications of the National Oceanic and 
                Atmospheric Administration), and architectural-related 
                services;'';
                    (C) in subparagraph (B)--
                          (i) by inserting ``reconstruction,'' before 
                      ``resurfacing''; and
                          (ii) by striking ``and rehabilitation'' and 
                      inserting ``rehabilitation, and preservation'';
                    (D) in subparagraph (E) by striking ``railway'' and 
                inserting ``railway-highway''; and
                    (E) in subparagraph (F) by striking ``obstacles'' 
                and inserting ``hazards'';
            (5) in paragraph (6) (as so redesignated)--
                    (A) by inserting ``public'' before ``highway 
                eligible''; and
                    (B) by inserting ``functionally'' before 
                ``classified'';
            (6) by inserting after paragraph (6) (as so redesignated) 
        the following:
            ``(7) Federal lands access transportation facility.--The 
        term `Federal Lands access transportation facility' means a 
        public highway, road, bridge, trail, or transit system that is 
        located on, is adjacent to, or provides access to Federal lands 
        for which title or maintenance responsibility is vested in a 
        State, county, town, township, tribal, municipal, or local 
        government.
            ``(8) Federal lands transportation facility.--The term 
        `Federal lands transportation facility' means a public highway, 
        road, bridge, trail, or transit system that is located on, is 
        adjacent to, or provides access to Federal lands for which title 
        and maintenance responsibility is vested in the Federal 
        Government, and that appears on the national Federal lands 
        transportation facility inventory described in section 
        203(c).'';
            (7) in paragraph (11)(B) by inserting ``including public 
        roads on dams'' after ``drainage structure'';
            (8) in paragraph (14) (as so redesignated)--
                    (A) by striking ``as a'' and inserting ``as an air 
                quality''; and
                    (B) by inserting ``air quality'' before ``attainment 
                area'';
            (9) in paragraph (18) (as so redesignated) by striking ``an 
        undertaking to construct a particular portion of a highway, or 
        if the context so implies, the particular portion of a highway 
        so constructed or any other undertaking'' and inserting ``any 
        undertaking'';
            (10) in paragraph (19) (as so redesignated)--
                    (A) by striking ``the State transportation 
                department and''; and
                    (B) by inserting ``and the recipient'' after 
                ``Secretary'';
            (11) by striking paragraph (23) (as so redesignated) and 
        inserting the following:

[[Page 126 STAT. 421]]

            ``(23) Safety improvement project.--The term `safety 
        improvement project' means a strategy, activity, or project on a 
        public road that is consistent with the State strategic highway 
        safety plan and corrects or improves a roadway feature that 
        constitutes a hazard to road users or addresses a highway safety 
        problem.'';
            (12) by inserting after paragraph (26) (as so redesignated) 
        the following:
            ``(27) State strategic highway safety plan.--The term `State 
        strategic highway safety plan' has the same meaning given such 
        term in section 148(a).'';
            (13) by striking paragraph (29) (as so redesignated) and 
        inserting the following:
            ``(29) Transportation alternatives.--The term 
        `transportation alternatives' means any of the following 
        activities when carried out as part of any program or project 
        authorized or funded under this title, or as an independent 
        program or project related to surface transportation:
                    ``(A) Construction, planning, and design of on-road 
                and off-road trail facilities for pedestrians, 
                bicyclists, and other nonmotorized forms of 
                transportation, including sidewalks, bicycle 
                infrastructure, pedestrian and bicycle signals, traffic 
                calming techniques, lighting and other safety-related 
                infrastructure, and transportation projects to achieve 
                compliance with the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.).
                    ``(B) Construction, planning, and design of 
                infrastructure-related projects and systems that will 
                provide safe routes for non-drivers, including children, 
                older adults, and individuals with disabilities to 
                access daily needs.
                    ``(C) Conversion and use of abandoned railroad 
                corridors for trails for pedestrians, bicyclists, or 
                other nonmotorized transportation users.
                    ``(D) Construction of turnouts, overlooks, and 
                viewing areas.
                    ``(E) Community improvement activities, including--
                          ``(i) inventory, control, or removal of 
                      outdoor advertising;
                          ``(ii) historic preservation and 
                      rehabilitation of historic transportation 
                      facilities;
                          ``(iii) vegetation management practices in 
                      transportation rights-of-way to improve roadway 
                      safety, prevent against invasive species, and 
                      provide erosion control; and
                          ``(iv) archaeological activities relating to 
                      impacts from implementation of a transportation 
                      project eligible under this title.
                    ``(F) Any environmental mitigation activity, 
                including pollution prevention and pollution abatement 
                activities and mitigation to--
                          ``(i) address stormwater management, control, 
                      and water pollution prevention or abatement 
                      related to highway construction or due to highway 
                      runoff, including activities described in sections 
                      133(b)(11), 328(a), and 329; or

[[Page 126 STAT. 422]]

                          ``(ii) reduce vehicle-caused wildlife 
                      mortality or to restore and maintain connectivity 
                      among terrestrial or aquatic habitats.''; and
            (14) by inserting after paragraph (29) (as so redesignated) 
        the following:
            ``(30) Transportation systems management and operations.--
                    ``(A) In general.--The term `transportation systems 
                management and operations' means integrated strategies 
                to optimize the performance of existing infrastructure 
                through the implementation of multimodal and intermodal, 
                cross-jurisdictional systems, services, and projects 
                designed to preserve capacity and improve security, 
                safety, and reliability of the transportation system.
                    ``(B) Inclusions.--The term `transportation systems 
                management and operations' includes--
                          ``(i) actions such as traffic detection and 
                      surveillance, corridor management, freeway 
                      management, arterial management, active 
                      transportation and demand management, work zone 
                      management, emergency management, traveler 
                      information services, congestion pricing, parking 
                      management, automated enforcement, traffic 
                      control, commercial vehicle operations, freight 
                      management, and coordination of highway, rail, 
                      transit, bicycle, and pedestrian operations; and
                          ``(ii) coordination of the implementation of 
                      regional transportation system management and 
                      operations investments (such as traffic incident 
                      management, traveler information services, 
                      emergency management, roadway weather management, 
                      intelligent transportation systems, communication 
                      networks, and information sharing systems) 
                      requiring agreements, integration, and 
                      interoperability to achieve targeted system 
                      performance, reliability, safety, and customer 
                      service levels.
            ``(31) Tribal transportation facility.--The term `tribal 
        transportation facility' means a public highway, road, bridge, 
        trail, or transit system that is located on or provides access 
        to tribal land and appears on the national tribal transportation 
        facility inventory described in section 202(b)(1).
            ``(32) Truck stop electrification system.--The term `truck 
        stop electrification system' means a system that delivers heat, 
        air conditioning, electricity, or communications to a heavy-duty 
        vehicle.''.

    (b) Sense of Congress.--Section 101(c) of title 23, United States 
Code, is amended by striking ``system'' and inserting ``highway''.
SEC. 1104. NATIONAL HIGHWAY SYSTEM.

    (a) In General.--Section 103 of title 23, United States Code, is 
amended to read as follows:
``Sec. 103. National Highway System

    ``(a) In General.--For the purposes of this title, the Federal-aid 
system is the National Highway System, which includes the Interstate 
System.

[[Page 126 STAT. 423]]

    ``(b) National Highway System.--
            ``(1) Description.--The National Highway System consists of 
        the highway routes and connections to transportation facilities 
        that shall--
                    ``(A) serve major population centers, international 
                border crossings, ports, airports, public transportation 
                facilities, and other intermodal transportation 
                facilities and other major travel destinations;
                    ``(B) meet national defense requirements; and
                    ``(C) serve interstate and interregional travel and 
                commerce.
            ``(2) Components.--The National Highway System described in 
        paragraph (1) consists of the following:
                    ``(A) The National Highway System depicted on the 
                map submitted by the Secretary of Transportation to 
                Congress with the report entitled `Pulling Together: The 
                National Highway System and its Connections to Major 
                Intermodal Terminals' and dated May 24, 1996, and 
                modifications approved by the Secretary before the date 
                of enactment of the MAP-21.
                    ``(B) Other urban and rural principal arterial 
                routes, and border crossings on those routes, that were 
                not included on the National Highway System before the 
                date of enactment of the MAP-21.
                    ``(C) Other connector highways (including toll 
                facilities) that were not included in the National 
                Highway System before the date of enactment of the MAP-
                21 but that provide motor vehicle access between 
                arterial routes on the National Highway System and a 
                major intermodal transportation facility.
                    ``(D) A strategic highway network that--
                          ``(i) consists of a network of highways that 
                      are important to the United States strategic 
                      defense policy, that provide defense access, 
                      continuity, and emergency capabilities for the 
                      movement of personnel, materials, and equipment in 
                      both peacetime and wartime, and that were not 
                      included on the National Highway System before the 
                      date of enactment of the MAP-21;
                          ``(ii) may include highways on or off the 
                      Interstate System; and
                          ``(iii) shall be designated by the Secretary, 
                      in consultation with appropriate Federal agencies 
                      and the States.
                    ``(E) Major strategic highway network connectors 
                that--
                          ``(i) consist of highways that provide motor 
                      vehicle access between major military 
                      installations and highways that are part of the 
                      strategic highway network but were not included on 
                      the National Highway System before the date of 
                      enactment of the MAP-21; and
                          ``(ii) shall be designated by the Secretary, 
                      in consultation with appropriate Federal agencies 
                      and the States.
            ``(3) Modifications to nhs.--

[[Page 126 STAT. 424]]

                    ``(A) In general.--The Secretary may make any 
                modification, including any modification consisting of a 
                connector to a major intermodal terminal, to the 
                National Highway System that is proposed by a State if 
                the Secretary determines that the modification--
                          ``(i) meets the criteria established for the 
                      National Highway System under this title after the 
                      date of enactment of the MAP-21; and
                          ``(ii) enhances the national transportation 
                      characteristics of the National Highway System.
                    ``(B) Cooperation.--
                          ``(i) In general.--In proposing a modification 
                      under this paragraph, a State shall cooperate with 
                      local and regional officials.
                          ``(ii) Urbanized areas.--In an urbanized area, 
                      the local officials shall act through the 
                      metropolitan planning organization designated for 
                      the area under section 134.

    ``(c) Interstate System.--
            ``(1) Description.--
                    ``(A) In general.--The Dwight D. Eisenhower National 
                System of Interstate and Defense Highways within the 
                United States (including the District of Columbia and 
                Puerto Rico) consists of highways designed, located, and 
                selected in accordance with this paragraph.
                    ``(B) Design.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), highways on the Interstate System 
                      shall be designed in accordance with the standards 
                      of section 109(b).
                          ``(ii) Exception.--Highways on the Interstate 
                      System in Alaska and Puerto Rico shall be designed 
                      in accordance with such geometric and construction 
                      standards as are adequate for current and probable 
                      future traffic demands and the needs of the 
                      locality of the highway.
                    ``(C) Location.--Highways on the Interstate System 
                shall be located so as--
                          ``(i) to connect by routes, as direct as 
                      practicable, the principal metropolitan areas, 
                      cities, and industrial centers;
                          ``(ii) to serve the national defense; and
                          ``(iii) to the maximum extent practicable, to 
                      connect at suitable border points with routes of 
                      continental importance in Canada and Mexico.
                    ``(D) Selection of routes.--To the maximum extent 
                practicable, each route of the Interstate System shall 
                be selected by joint action of the State transportation 
                departments of the State in which the route is located 
                and the adjoining States, in cooperation with local and 
                regional officials, and subject to the approval of the 
                Secretary.
            ``(2) Maximum mileage.--The mileage of highways on the 
        Interstate System shall not exceed 43,000 miles, exclusive of 
        designations under paragraph (4).
            ``(3) Modifications.--The Secretary may approve or require 
        modifications to the Interstate System in a manner

[[Page 126 STAT. 425]]

        consistent with the policies and procedures established under 
        this subsection.
            ``(4) Interstate system designations.--
                    ``(A) Additions.--If the Secretary determines that a 
                highway on the National Highway System meets all 
                standards of a highway on the Interstate System and that 
                the highway is a logical addition or connection to the 
                Interstate System, the Secretary may, upon the 
                affirmative recommendation of the State or States in 
                which the highway is located, designate the highway as a 
                route on the Interstate System.
                    ``(B) Designations as future interstate system 
                routes.--
                          ``(i) In general.--Subject to clauses (ii) 
                      through (vi), if the Secretary determines that a 
                      highway on the National Highway System would be a 
                      logical addition or connection to the Interstate 
                      System and would qualify for designation as a 
                      route on the Interstate System under subparagraph 
                      (A) if the highway met all standards of a highway 
                      on the Interstate System, the Secretary may, upon 
                      the affirmative recommendation of the State or 
                      States in which the highway is located, designate 
                      the highway as a future Interstate System route.
                          ``(ii) Written agreement.--A designation under 
                      clause (i) shall be made only upon the written 
                      agreement of each State described in that clause 
                      that the highway will be constructed to meet all 
                      standards of a highway on the Interstate System by 
                      not later than the date that is 25 years after the 
                      date of the agreement.
                          ``(iii) Failure to complete construction.--If 
                      a State described in clause (i) has not 
                      substantially completed the construction of a 
                      highway designated under this subparagraph by the 
                      date specified in clause (ii), the Secretary shall 
                      remove the designation of the highway as a future 
                      Interstate System route.
                          ``(iv) Effect of removal.--Removal of the 
                      designation of a highway under clause (iii) shall 
                      not preclude the Secretary from designating the 
                      highway as a route on the Interstate System under 
                      subparagraph (A) or under any other provision of 
                      law providing for addition to the Interstate 
                      System.
                          ``(v) Retroactive effect.--An agreement 
                      described in clause (ii) that is entered into 
                      before August 10, 2005, shall be deemed to include 
                      the 25-year time limitation described in that 
                      clause, regardless of any earlier construction 
                      completion date in the agreement.
                          ``(vi) References.--No law, rule, regulation, 
                      map, document, or other record of the United 
                      States, or of any State or political subdivision 
                      of a State, shall refer to any highway designated 
                      as a future Interstate System route under this 
                      subparagraph, and no such highway shall be signed 
                      or marked, as a highway on the Interstate System, 
                      until such time as the highway--

[[Page 126 STAT. 426]]

                                    ``(I) is constructed to the 
                                geometric and construction standards for 
                                the Interstate System; and
                                    ``(II) has been designated as a 
                                route on the Interstate System.
                    ``(C) Financial responsibility.--Except as provided 
                in this title, the designation of a highway under this 
                paragraph shall create no additional Federal financial 
                responsibility with respect to the highway.
            ``(5) Exemption of interstate system.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Interstate System shall not be 
                considered to be a historic site under section 303 of 
                title 49 or section 138 of this title, regardless of 
                whether the Interstate System or portions or elements of 
                the Interstate System are listed on, or eligible for 
                listing on, the National Register of Historic Places.
                    ``(B) Individual elements.--Subject to subparagraph 
                (C)--
                          ``(i) <<NOTE: Determination.>> the Secretary 
                      shall determine, through the administrative 
                      process established for exempting the Interstate 
                      System from section 106 of the National Historic 
                      Preservation Act (16 U.S.C. 470f), those 
                      individual elements of the Interstate System that 
                      possess national or exceptional historic 
                      significance (such as a historic bridge or a 
                      highly significant engineering feature); and
                          ``(ii) those elements shall be considered to 
                      be historic sites under section 303 of title 49 or 
                      section 138 of this title, as applicable.
                    ``(C) Construction, maintenance, restoration, and 
                rehabilitation activities.--Subparagraph (B) does not 
                prohibit a State from carrying out construction, 
                maintenance, preservation, restoration, or 
                rehabilitation activities for a portion of the 
                Interstate System referred to in subparagraph (B) upon 
                compliance with section 303 of title 49 or section 138 
                of this title, as applicable, and section 106 of the 
                National Historic Preservation Act (16 U.S.C. 470f).''.

    (b) Inclusion of Certain Route Segments on Interstate System.--
            (1) In general.--Section 1105(e)(5)(A) of the Intermodal 
        Surface Transportation Efficiency Act of 1991 (105 Stat. 2031; 
        109 Stat. 597; 115 Stat. 872) is amended--
                    (A) in the first sentence, by striking ``and in 
                subsections (c)(18) and (c)(20)'' and inserting ``, in 
                subsections (c)(18) and (c)(20), and in subparagraphs 
                (A)(iii) and (B) of subsection (c)(26)''; and
                    (B) in the second sentence, by striking ``that the 
                segment'' and all that follows through the period and 
                inserting ``that the segment meets the Interstate System 
                design standards approved by the Secretary under section 
                109(b) of title 23, United States Code, and is planned 
                to connect to an existing Interstate System segment by 
                the date that is 25 years after the date of enactment of 
                the MAP-21.''.
            (2) Route designation.--Section 1105(e)(5)(C)(i) of the 
        Intermodal Surface Transportation Efficiency Act of 1991 (105

[[Page 126 STAT. 427]]

        Stat. 2032; 109 Stat. 598) is amended by adding at the end the 
        following: ``The routes referred to subparagraphs (A)(iii) and 
        (B)(i) of subsection (c)(26) are designated as Interstate Route 
        I-11.''.

    (c) Conforming Amendments.--
            (1) Analysis.--The analysis for chapter 1 of title 23, 
        United States Code, is amended by striking the item relating to 
        section 103 and inserting the following:

``103. National Highway System.''.

            (2) Section 113.--Section 113 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a) by striking ``the Federal-aid 
                systems'' and inserting ``Federal-aid highways''; and
                    (B) in subsection (b), in the first sentence, by 
                striking ``of the Federal-aid systems'' and inserting 
                ``Federal-aid highway''.
            (3) Section 123.--Section 123(a) of title 23, United States 
        Code, is amended in the first sentence by striking ``Federal-aid 
        system'' and inserting ``Federal-aid highway''.
            (4) Section 217.--Section 217(b) of title 23, United States 
        Code, is amended in the subsection heading by striking 
        ``National Highway System'' and inserting ``National Highway 
        Performance Program''.
            (5) Section 304.--Section 304 of title 23, United States 
        Code, is amended in the first sentence by striking ``the 
        Federal-aid highway systems'' and inserting ``Federal-aid 
        highways''.
            (6) Section 317.--Section 317(d) of title 23, United States 
        Code, is amended by striking ``system'' and inserting 
        ``highway''.
SEC. 1105. APPORTIONMENT.

    (a) In General.--Section 104 of title 23, United States Code, is 
amended to read as follows:
``Sec. 104. Apportionment

    ``(a) Administrative Expenses.--
            ``(1) In general.--There are authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) to be made available to the Secretary for 
        administrative expenses of the Federal Highway Administration--
                    ``(A) $454,180,326 for fiscal year 2013; and
                    ``(B) $440,000,000 for fiscal year 2014.
            ``(2) Purposes.--The amounts authorized to be appropriated 
        by this subsection shall be used--
                    ``(A) to administer the provisions of law to be 
                funded from appropriations for the Federal-aid highway 
                program and programs authorized under chapter 2;
                    ``(B) to make transfers of such sums as the 
                Secretary determines to be appropriate to the 
                Appalachian Regional Commission for administrative 
                activities associated with the Appalachian development 
                highway system; and
                    ``(C) to reimburse, as appropriate, the Office of 
                Inspector General of the Department of Transportation 
                for the conduct of annual audits of financial statements 
                in accordance with section 3521 of title 31.
            ``(3) Availability.--The amounts made available under 
        paragraph (1) shall remain available until expended.

[[Page 126 STAT. 428]]

    ``(b) Division of State Apportionments Among Programs.--The 
Secretary shall distribute the amount apportioned to a State for a 
fiscal year under subsection (c) among the national highway performance 
program, the surface transportation program, the highway safety 
improvement program, and the congestion mitigation and air quality 
improvement program, and to carry out section 134 as follows:
            ``(1) National highway performance program.--For the 
        national highway performance program, 63.7 percent of the amount 
        remaining after distributing amounts under paragraphs (4) and 
        (5).
            ``(2) Surface transportation program.--For the surface 
        transportation program, 29.3 percent of the amount remaining 
        after distributing amounts under paragraphs (4) and (5).
            ``(3) Highway safety improvement program.--For the highway 
        safety improvement program, 7 percent of the amount remaining 
        after distributing amounts under paragraphs (4) and (5).
            ``(4) Congestion mitigation and air quality improvement 
        program.--For the congestion mitigation and air quality 
        improvement program, an amount determined by multiplying the 
        amount determined for the State under subsection (c) by the 
        proportion that--
                    ``(A) the amount apportioned to the State for the 
                congestion mitigation and air quality improvement 
                program for fiscal year 2009; bears to
                    ``(B) the total amount of funds apportioned to the 
                State for that fiscal year for the programs referred to 
                in section 105(a)(2) (except for the high priority 
                projects program referred to in section 105(a)(2)(H)), 
                as in effect on the day before the date of enactment of 
                the MAP-21.
            ``(5) Metropolitan planning.--To carry out section 134, an 
        amount determined by multiplying the amount determined for the 
        State under subsection (c) by the proportion that--
                    ``(A) the amount apportioned to the State to carry 
                out section 134 for fiscal year 2009; bears to
                    ``(B) the total amount of funds apportioned to the 
                State for that fiscal year for the programs referred to 
                in section 105(a)(2) (except for the high priority 
                projects program referred to in section 105(a)(2)(H)), 
                as in effect on the day before the date of enactment of 
                the MAP-21.

    ``(c) Calculation of State Amounts.--
            ``(1) For fiscal year 2013.--
                    ``(A) Calculation of amount.--For fiscal year 2013, 
                the amount for each State of combined apportionments for 
                the national highway performance program under section 
                119, the surface transportation program under section 
                133, the highway safety improvement program under 
                section 148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 shall be equal to the combined amount of 
                apportionments that the State received for fiscal year 
                2012.
                    ``(B) State apportionment.--On October 1 of such 
                fiscal year, the Secretary shall apportion the sum 
                authorized to be appropriated for expenditure on the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway

[[Page 126 STAT. 429]]

                safety improvement program under section 148, the 
                congestion mitigation and air quality improvement 
                program under section 149, and to carry out section 134 
                in accordance with subparagraph (A).
            ``(2) For fiscal year 2014.--
                    ``(A) State share.--For fiscal year 2014, the amount 
                for each State of combined apportionments for the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway safety improvement program under section 
                148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 shall be determined as follows:
                          ``(i) Initial amount.--The initial amount for 
                      each State shall be determined by multiplying the 
                      total amount available for apportionment by the 
                      share for each State which shall be equal to the 
                      proportion that--
                                    ``(I) the amount of apportionments 
                                that the State received for fiscal year 
                                2012; bears to
                                    ``(II) the amount of those 
                                apportionments received by all States 
                                for that fiscal year.
                          ``(ii) Adjustments to amounts.--The initial 
                      amounts resulting from the calculation under 
                      clause (i) shall be adjusted to ensure that, for 
                      each State, the amount of combined apportionments 
                      for the programs shall not be less than 95 percent 
                      of the estimated tax payments attributable to 
                      highway users in the State paid into the Highway 
                      Trust Fund (other than the Mass Transit Account) 
                      in the most recent fiscal year for which data are 
                      available.
                    ``(B) State apportionment.--On October 1 of such 
                fiscal year, the Secretary shall apportion the sum 
                authorized to be appropriated for expenditure on the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway safety improvement program under section 
                148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 in accordance with subparagraph (A).

    ``(d) Metropolitan Planning.--
            ``(1) Use of amounts.--
                    ``(A) Use.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), the amounts apportioned to a State 
                      under subsection (b)(5) shall be made available by 
                      the State to the metropolitan planning 
                      organizations responsible for carrying out section 
                      134 in the State.
                          ``(ii) States receiving minimum 
                      apportionment.--A State that received the minimum 
                      apportionment for use in carrying out section 134 
                      for fiscal year 2009 may, subject to the approval 
                      of the Secretary, use the funds apportioned under 
                      subsection (b)(5) to fund transportation planning 
                      outside of urbanized areas.

[[Page 126 STAT. 430]]

                    ``(B) Unused funds.--Any funds that are not used to 
                carry out section 134 may be made available by a 
                metropolitan planning organization to the State to fund 
                activities under section 135.
            ``(2) Distribution of amounts within states.--
                    ``(A) In general.--The distribution within any State 
                of the planning funds made available to organizations 
                under paragraph (1) shall be in accordance with a 
                formula that--
                          ``(i) is developed by each State and approved 
                      by the Secretary; and
                          ``(ii) takes into consideration, at a minimum, 
                      population, status of planning, attainment of air 
                      quality standards, metropolitan area 
                      transportation needs, and other factors necessary 
                      to provide for an appropriate distribution of 
                      funds to carry out section 134 and other 
                      applicable requirements of Federal law.
                    ``(B) <<NOTE: Deadline.>> Reimbursement.--Not later 
                than 15 business days after the date of receipt by a 
                State of a request for reimbursement of expenditures 
                made by a metropolitan planning organization for 
                carrying out section 134, the State shall reimburse, 
                from amounts distributed under this paragraph to the 
                metropolitan planning organization by the State, the 
                metropolitan planning organization for those 
                expenditures.
            ``(3) Determination of population figures.--For the purpose 
        of determining population figures under this subsection, the 
        Secretary shall use the latest available data from the decennial 
        census conducted under section 141(a) of title 13, United States 
        Code.

    ``(e) <<NOTE: Deadlines.>> Certification of Apportionments.--
            ``(1) In general.--The Secretary shall--
                    ``(A) on October 1 of each fiscal year, certify to 
                each of the State transportation departments the amount 
                that has been apportioned to the State under this 
                section for the fiscal year; and
                    ``(B) to permit the States to develop adequate plans 
                for the use of amounts apportioned under this section, 
                advise each State of the amount that will be apportioned 
                to the State under this section for a fiscal year not 
                later than 90 days before the beginning of the fiscal 
                year for which the sums to be apportioned are 
                authorized.
            ``(2) Notice to states.--If the Secretary has not made an 
        apportionment under this section for a fiscal year beginning 
        after September 30, 1998, by not later than the date that is the 
        twenty-first day of that fiscal year, the Secretary shall 
        submit, by not later than that date, to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate, a written statement of the reason for not 
        making the apportionment in a timely manner.
            ``(3) Apportionment calculations.--
                    ``(A) In general.--The calculation of official 
                apportionments of funds to the States under this title 
                is a primary responsibility of the Department and shall 
                be carried out only by employees (and not contractors) 
                of the Department.

[[Page 126 STAT. 431]]

                    ``(B) Prohibition on use of funds to hire 
                contractors.--None of the funds made available under 
                this title shall be used to hire contractors to 
                calculate the apportionments of funds to States.

    ``(f) Transfer of Highway and Transit Funds.--
            ``(1) Transfer of highway funds for transit projects.--
                    ``(A) In general.--Subject to subparagraph (B), 
                amounts made available for transit projects or 
                transportation planning under this title may be 
                transferred to and administered by the Secretary in 
                accordance with chapter 53 of title 49.
                    ``(B) <<NOTE: Applicability.>> Non-federal share.--
                The provisions of this title relating to the non-Federal 
                share shall apply to the amounts transferred under 
                subparagraph (A).
            ``(2) Transfer of transit funds for highway projects.--
                    ``(A) In general.--Subject to subparagraph (B), 
                amounts made available for highway projects or 
                transportation planning under chapter 53 of title 49 may 
                be transferred to and administered by the Secretary in 
                accordance with this title.
                    ``(B) <<NOTE: Applicability.>> Non-federal share.--
                The provisions of chapter 53 of title 49 relating to the 
                non-Federal share shall apply to amounts transferred 
                under subparagraph (A).
            ``(3) Transfer of funds among states or to federal highway 
        administration.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may, at the request of a State, transfer 
                amounts apportioned or allocated under this title to the 
                State to another State, or to the Federal Highway 
                Administration, for the purpose of funding 1 or more 
                projects that are eligible for assistance with amounts 
                so apportioned or allocated.
                    ``(B) Apportionment.--The transfer shall have no 
                effect on any apportionment of amounts to a State under 
                this section.
                    ``(C) Funds suballocated to urbanized areas.--
                Amounts that are apportioned or allocated to a State 
                under subsection (b)(3) (as in effect on the day before 
                the date of enactment of the MAP-21) or subsection 
                (b)(2) and attributed to an urbanized area of a State 
                with a population of more than 200,000 individuals under 
                section 133(d) may be transferred under this paragraph 
                only if the metropolitan planning organization 
                designated for the area concurs, in writing, with the 
                transfer request.
            ``(4) Transfer of obligation authority.--Obligation 
        authority for amounts transferred under this subsection shall be 
        transferred in the same manner and amount as the amounts for the 
        projects that are transferred under this section.

    ``(g) <<NOTE: Public information. Web posting.>> Report to 
Congress.--For each fiscal year, the Secretary shall make available to 
the public, in a user-friendly format via the Internet, a report that 
describes--
            ``(1) the amount obligated, by each State, for Federal-aid 
        highways and highway safety construction programs during the 
        preceding fiscal year;
            ``(2) the balance, as of the last day of the preceding 
        fiscal year, of the unobligated apportionment of each State by 
        fiscal year under this section;

[[Page 126 STAT. 432]]

            ``(3) the balance of unobligated sums available for 
        expenditure at the discretion of the Secretary for such highways 
        and programs for the fiscal year; and
            ``(4) the rates of obligation of funds apportioned or set 
        aside under this section, according to--
                    ``(A) program;
                    ``(B) funding category of subcategory;
                    ``(C) type of improvement;
                    ``(D) State; and
                    ``(E) sub-State geographical area, including 
                urbanized and rural areas, on the basis of the 
                population of each such area.''.

    (b) Conforming Amendment.--Section 146(a) of title 23, United States 
Code, is amended by striking ``sections 104(b)(l) and 104(b)(3)'' and 
inserting ``section 104(b)(2)''.
SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

    (a) In General.--Section 119 of title 23, United States Code, is 
amended to read as follows:
``Sec. 119. National highway performance program

    ``(a) Establishment.--The Secretary shall establish and implement a 
national highway performance program under this section.
    ``(b) Purposes.--The purposes of the national highway performance 
program shall be--
            ``(1) to provide support for the condition and performance 
        of the National Highway System;
            ``(2) to provide support for the construction of new 
        facilities on the National Highway System; and
            ``(3) to ensure that investments of Federal-aid funds in 
        highway construction are directed to support progress toward the 
        achievement of performance targets established in an asset 
        management plan of a State for the National Highway System.

    ``(c) Eligible Facilities.--Except as provided in subsection (d), to 
be eligible for funding apportioned under section 104(b)(1) to carry out 
this section, a facility shall be located on the National Highway 
System, as defined in section 103.
    ``(d) Eligible Projects.--Funds apportioned to a State to carry out 
the national highway performance program may be obligated only for a 
project on an eligible facility that is--
            ``(1)(A) a project or part of a program of projects 
        supporting progress toward the achievement of national 
        performance goals for improving infrastructure condition, 
        safety, mobility, or freight movement on the National Highway 
        System; and
            ``(B) consistent with sections 134 and 135; and
            ``(2) for 1 or more of the following purposes:
                    ``(A) Construction, reconstruction, resurfacing, 
                restoration, rehabilitation, preservation, or 
                operational improvement of segments of the National 
                Highway System.
                    ``(B) Construction, replacement (including 
                replacement with fill material), rehabilitation, 
                preservation, and protection (including scour 
                countermeasures, seismic retrofits, impact protection 
                measures, security countermeasures, and protection 
                against extreme events) of bridges on the National 
                Highway System.

[[Page 126 STAT. 433]]

                    ``(C) Construction, replacement (including 
                replacement with fill material), rehabilitation, 
                preservation, and protection (including impact 
                protection measures, security countermeasures, and 
                protection against extreme events) of tunnels on the 
                National Highway System.
                    ``(D) Inspection and evaluation, as described in 
                section 144, of bridges and tunnels on the National 
                Highway System, and inspection and evaluation of other 
                highway infrastructure assets on the National Highway 
                System, including signs and sign structures, earth 
                retaining walls, and drainage structures.
                    ``(E) Training of bridge and tunnel inspectors, as 
                described in section 144.
                    ``(F) Construction, rehabilitation, or replacement 
                of existing ferry boats and ferry boat facilities, 
                including approaches, that connect road segments of the 
                National Highway System.
                    ``(G) Construction, reconstruction, resurfacing, 
                restoration, rehabilitation, and preservation of, and 
                operational improvements for, a Federal-aid highway not 
                on the National Highway System, and construction of a 
                transit project eligible for assistance under chapter 53 
                of title 49, if--
                          ``(i) the highway project or transit project 
                      is in the same corridor as, and in proximity to, a 
                      fully access-controlled highway designated as a 
                      part of the National Highway System;
                          ``(ii) the construction or improvements will 
                      reduce delays or produce travel time savings on 
                      the fully access-controlled highway described in 
                      clause (i) and improve regional traffic flow; and
                          ``(iii) the construction or improvements are 
                      more cost-effective, as determined by benefit-cost 
                      analysis, than an improvement to the fully access-
                      controlled highway described in clause (i).
                    ``(H) Bicycle transportation and pedestrian walkways 
                in accordance with section 217.
                    ``(I) Highway safety improvements for segments of 
                the National Highway System.
                    ``(J) Capital and operating costs for traffic and 
                traveler information monitoring, management, and control 
                facilities and programs.
                    ``(K) Development and implementation of a State 
                asset management plan for the National Highway System in 
                accordance with this section, including data collection, 
                maintenance, and integration and the cost associated 
                with obtaining, updating, and licensing software and 
                equipment required for risk-based asset management and 
                performance-based management.
                    ``(L) Infrastructure-based intelligent 
                transportation systems capital improvements.
                    ``(M) Environmental restoration and pollution 
                abatement in accordance with section 328.
                    ``(N) Control of noxious weeds and aquatic noxious 
                weeds and establishment of native species in accordance 
                with section 329.

[[Page 126 STAT. 434]]

                    ``(O) Environmental mitigation efforts related to 
                projects funded under this section, as described in 
                subsection (g).
                    ``(P) Construction of publicly owned intracity or 
                intercity bus terminals servicing the National Highway 
                System.

    ``(e) State Performance Management.--
            ``(1) In general.--A State shall develop a risk-based asset 
        management plan for the National Highway System to improve or 
        preserve the condition of the assets and the performance of the 
        system.
            ``(2) Performance driven plan.--A State asset management 
        plan shall include strategies leading to a program of projects 
        that would make progress toward achievement of the State targets 
        for asset condition and performance of the National Highway 
        System in accordance with section 150(d) and supporting the 
        progress toward the achievement of the national goals identified 
        in section 150(b).
            ``(3) Scope.--In developing a risk-based asset management 
        plan, the Secretary shall encourage States to include all 
        infrastructure assets within the right-of-way corridor in such 
        plan.
            ``(4) Plan contents.--A State asset management plan shall, 
        at a minimum, be in a form that the Secretary determines to be 
        appropriate and include--
                    ``(A) a summary listing of the pavement and bridge 
                assets on the National Highway System in the State, 
                including a description of the condition of those 
                assets;
                    ``(B) asset management objectives and measures;
                    ``(C) performance gap identification;
                    ``(D) lifecycle cost and risk management analysis;
                    ``(E) a financial plan; and
                    ``(F) investment strategies.
            ``(5) <<NOTE: Determination.>> Requirement for plan.--
        Notwithstanding section 120, with respect to the second fiscal 
        year beginning after the date of establishment of the process 
        established in paragraph (8) or any subsequent fiscal year, if 
        the Secretary determines that a State has not developed and 
        implemented a State asset management plan consistent with this 
        section, the Federal share payable on account of any project or 
        activity carried out by the State in that fiscal year under this 
        section shall be 65 percent.
            ``(6) <<NOTE: Deadlines. Reviews.>> Certification of plan 
        development process.--
                    ``(A) In general.--Not later than 90 days after the 
                date on which a State submits a request for approval of 
                the process used by the State to develop the State asset 
                management plan for the National Highway System, the 
                Secretary shall--
                          ``(i) review the process; and
                          ``(ii)(I) certify that the process meets the 
                      requirements established by the Secretary; or
                          ``(II) deny certification and specify actions 
                      necessary for the State to take to correct 
                      deficiencies in the State process.
                    ``(B) Recertification.--Not less frequently than 
                once every 4 years, the Secretary shall review and 
                recertify that the process used by a State to develop 
                and maintain the State asset management plan for the 
                National Highway

[[Page 126 STAT. 435]]

                System meets the requirements for the process, as 
                established by the Secretary.
                    ``(C) Opportunity to cure.--If the Secretary denies 
                certification under subparagraph (A), the Secretary 
                shall provide the State with--
                          ``(i) not less than 90 days to cure the 
                      deficiencies of the plan, during which time period 
                      all penalties and other legal impacts of a denial 
                      of certification shall be stayed; and
                          ``(ii) <<NOTE: Statement.>> a written 
                      statement of the specific actions the Secretary 
                      determines to be necessary for the State to cure 
                      the plan.
            ``(7) <<NOTE: Reports.>> Performance achievement.--A State 
        that does not achieve or make significant progress toward 
        achieving the targets of the State for performance measures 
        described in section 150(d) for the National Highway System for 
        2 consecutive reports submitted under this paragraph shall 
        include in the next report submitted a description of the 
        actions the State will undertake to achieve the targets.
            ``(8) <<NOTE: Deadline. Regulations.>> Process.--Not later 
        than 18 months after the date of enactment of the MAP-21, the 
        Secretary shall, by regulation and in consultation with State 
        departments of transportation, establish the process to develop 
        the State asset management plan described in paragraph (1).

    ``(f) Interstate System and NHS Bridge Conditions.--
            ``(1) Condition of interstate system.--
                    ``(A) Penalty.--If, during 2 consecutive reporting 
                periods, the condition of the Interstate System, 
                excluding bridges on the Interstate System, in a State 
                falls below the minimum condition level established by 
                the Secretary under section 150(c)(3), the State shall 
                be required, during the following fiscal year--
                          ``(i) to obligate, from the amounts 
                      apportioned to the State under section 104(b)(1), 
                      an amount that is not less than the amount of 
                      funds apportioned to the State for fiscal year 
                      2009 under the Interstate maintenance program for 
                      the purposes described in this section (as in 
                      effect on the day before the date of enactment of 
                      the MAP-21), except that for each year after 
                      fiscal year 2013, the amount required to be 
                      obligated under this clause shall be increased by 
                      2 percent over the amount required to be obligated 
                      in the previous fiscal year; and
                          ``(ii) to transfer, from the amounts 
                      apportioned to the State under section 104(b)(2) 
                      (other than amounts suballocated to metropolitan 
                      areas and other areas of the State under section 
                      133(d)) to the apportionment of the State under 
                      section 104(b)(1), an amount equal to 10 percent 
                      of the amount of funds apportioned to the State 
                      for fiscal year 2009 under the Interstate 
                      maintenance program for the purposes described in 
                      this section (as in effect on the day before the 
                      date of enactment of the MAP-21).
                    ``(B) Restoration.--The obligation requirement for 
                the Interstate System in a State required by 
                subparagraph (A) for a fiscal year shall remain in 
                effect for each subsequent fiscal year until such time 
                as the condition of the

[[Page 126 STAT. 436]]

                Interstate System in the State exceeds the minimum 
                condition level established by the Secretary.
            ``(2) Condition of nhs bridges.--
                    ``(A) <<NOTE: Determination. Time 
                period.>> Penalty.--If the Secretary determines that, 
                for the 3-year-period preceding the date of the 
                determination, more than 10 percent of the total deck 
                area of bridges in the State on the National Highway 
                System is located on bridges that have been classified 
                as structurally deficient, an amount equal to 50 percent 
                of funds apportioned to such State for fiscal year 2009 
                to carry out section 144 (as in effect the day before 
                enactment of MAP-21) shall be set aside from amounts 
                apportioned to a State for a fiscal year under section 
                104(b)(1) only for eligible projects on bridges on the 
                National Highway System.
                    ``(B) Restoration.--The set-aside requirement for 
                bridges on the National Highway System in a State under 
                subparagraph (A) for a fiscal year shall remain in 
                effect for each subsequent fiscal year until such time 
                as less than 10 percent of the total deck area of 
                bridges in the State on the National Highway System is 
                located on bridges that have been classified as 
                structurally deficient, as determined by the Secretary.

    ``(g) Environmental Mitigation.--
            ``(1) Eligible activities.--In accordance with all 
        applicable Federal law (including regulations), environmental 
        mitigation efforts referred to in subsection (d)(2)(O) include 
        participation in natural habitat and wetlands mitigation efforts 
        relating to projects funded under this title, which may 
        include--
                    ``(A) participation in mitigation banking or other 
                third-party mitigation arrangements, such as--
                          ``(i) the purchase of credits from commercial 
                      mitigation banks;
                          ``(ii) the establishment and management of 
                      agency-sponsored mitigation banks; and
                          ``(iii) the purchase of credits or 
                      establishment of in-lieu fee mitigation programs;
                    ``(B) contributions to statewide and regional 
                efforts to conserve, restore, enhance, and create 
                natural habitats and wetlands; and
                    ``(C) the development of statewide and regional 
                environmental protection plans, including natural 
                habitat and wetland conservation and restoration plans.
            ``(2) Inclusion of other activities.--The banks, efforts, 
        and plans described in paragraph (1) include any such banks, 
        efforts, and plans developed in accordance with applicable law 
        (including regulations).
            ``(3) <<NOTE: Applicability.>> Terms and conditions.--The 
        following terms and conditions apply to natural habitat and 
        wetlands mitigation efforts under this subsection:
                    ``(A) Contributions to the mitigation effort may--
                          ``(i) take place concurrent with, or in 
                      advance of, commitment of funding under this title 
                      to a project or projects; and
                          ``(ii) occur in advance of project 
                      construction only if the efforts are consistent 
                      with all applicable requirements of Federal law 
                      (including regulations) and State transportation 
                      planning processes.

[[Page 126 STAT. 437]]

                    ``(B) Credits from any agency-sponsored mitigation 
                bank that are attributable to funding under this section 
                may be used only for projects funded under this title, 
                unless the agency pays to the Secretary an amount equal 
                to the Federal funds attributable to the mitigation bank 
                credits the agency uses for purposes other than 
                mitigation of a project funded under this title.
            ``(4) Preference.--At the discretion of the project sponsor, 
        preference shall be given, to the maximum extent practicable, to 
        mitigating an environmental impact through the use of a 
        mitigation bank, in-lieu fee, or other third-party mitigation 
        arrangement, if the use of credits from the mitigation bank or 
        in-lieu fee, or the other third-party mitigation arrangement for 
        the project, is approved by the applicable Federal agency.''.

    (b) <<NOTE: 23 USC 119 note.>> Transition Period.--
            (1) <<NOTE: Deadline.>> In general.--Except as provided in 
        paragraph (2), until such date as a State has in effect an 
        approved asset management plan and has established performance 
        targets as described in sections 119 and 150 of title 23, United 
        States Code, that will contribute to achieving the national 
        goals for the condition and performance of the National Highway 
        System, but not later than 18 months after the date on which the 
        Secretary promulgates the final regulation required under 
        section 150(c) of that title, the Secretary shall approve 
        obligations of funds apportioned to a State to carry out the 
        national highway performance program under section 119 of that 
        title, for projects that otherwise meet the requirements of that 
        section.
            (2) Extension.--The Secretary may extend the transition 
        period for a State under paragraph (1) if the Secretary 
        determines that the State has made a good faith effort to 
        establish an asset management plan and performance targets 
        referred to in that paragraph.

    (c) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
119 and inserting the following:

``119. National highway performance program.''.

SEC. 1107. EMERGENCY RELIEF.

    Section 125 of title 23, United States Code, is amended to read as 
follows:
``Sec. 125. Emergency relief

    ``(a) In General.--Subject to this section and section 120, an 
emergency fund is authorized for expenditure by the Secretary for the 
repair or reconstruction of highways, roads, and trails, in any area of 
the United States, including Indian reservations, that the Secretary 
finds have suffered serious damage as a result of--
            ``(1) a natural disaster over a wide area, such as by a 
        flood, hurricane, tidal wave, earthquake, severe storm, or 
        landslide; or
            ``(2) catastrophic failure from any external cause.

    ``(b) Restriction on Eligibility.--
            ``(1) Definition of construction phase.--In this subsection, 
        the term `construction phase' means the phase of physical 
        construction of a highway or bridge facility that is separate 
        from any other identified phases, such as planning, design,

[[Page 126 STAT. 438]]

        or right-of-way phases, in the State transportation improvement 
        program.
            ``(2) Restriction.--In no case shall funds be used under 
        this section for the repair or reconstruction of a bridge--
                    ``(A) that has been permanently closed to all 
                vehicular traffic by the State or responsible local 
                official because of imminent danger of collapse due to a 
                structural deficiency or physical deterioration; or
                    ``(B) if a construction phase of a replacement 
                structure is included in the approved Statewide 
                transportation improvement program at the time of an 
                event described in subsection (a).

    ``(c) Funding.--
            ``(1) In general.--Subject to the limitations described in 
        paragraph (2), there are authorized to be appropriated from the 
        Highway Trust Fund (other than the Mass Transit Account) such 
        sums as are necessary to establish the fund authorized by this 
        section and to replenish that fund on an annual basis.
            ``(2) Limitations.--The limitations referred to in paragraph 
        (1) are that--
                    ``(A) not more than $100,000,000 is authorized to be 
                obligated in any 1 fiscal year commencing after 
                September 30, 1980, to carry out this section, except 
                that, if for any fiscal year the total of all 
                obligations under this section is less than the amount 
                authorized to be obligated for the fiscal year, the 
                unobligated balance of that amount shall--
                          ``(i) remain available until expended; and
                          ``(ii) be in addition to amounts otherwise 
                      available to carry out this section for each year; 
                      and
                    ``(B)(i) pending such appropriation or 
                replenishment, the Secretary may obligate from any funds 
                appropriated at any time for obligation in accordance 
                with this title, including existing Federal-aid 
                appropriations, such sums as are necessary for the 
                immediate prosecution of the work herein authorized; and
                    ``(ii) funds obligated under this subparagraph shall 
                be reimbursed from the appropriation or replenishment.

    ``(d) Eligibility.--
            ``(1) In general.--The Secretary may expend funds from the 
        emergency fund authorized by this section only for the repair or 
        reconstruction of highways on Federal-aid highways in accordance 
        with this chapter, except that--
                    ``(A) no funds shall be so expended unless an 
                emergency has been declared by the Governor of the State 
                with concurrence by the Secretary, unless the President 
                has declared the emergency to be a major disaster for 
                the purposes of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
                for which concurrence of the Secretary is not required; 
                and
                    ``(B) <<NOTE: Deadline.>> the Secretary has received 
                an application from the State transportation department 
                that includes a comprehensive list of all eligible 
                project sites and repair costs by not later than 2 years 
                after the natural disaster or catastrophic failure.
            ``(2) Cost limitation.--

[[Page 126 STAT. 439]]

                    ``(A) Definition of comparable facility.--In this 
                paragraph, the term `comparable facility' means a 
                facility that meets the current geometric and 
                construction standards required for the types and volume 
                of traffic that the facility will carry over its design 
                life.
                    ``(B) Limitation.--The total cost of a project 
                funded under this section may not exceed the cost of 
                repair or reconstruction of a comparable facility.
            ``(3) Debris removal.--The costs of debris removal shall be 
        an eligible expense under this section only for--
                    ``(A) an event not declared a major disaster or 
                emergency by the President under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.); or
                    ``(B) an event declared a major disaster or 
                emergency by the President under that Act if the debris 
                removal is not eligible for assistance under section 
                403, 407, or 502 of that Act (42 U.S.C. 5170b, 5173, 
                5192).
            ``(4) Territories.--The total obligations for projects under 
        this section for any fiscal year in the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands shall not exceed $20,000,000.
            ``(5) Substitute traffic.--Notwithstanding any other 
        provision of this section, actual and necessary costs of 
        maintenance and operation of ferryboats or additional transit 
        service providing temporary substitute highway traffic service, 
        less the amount of fares charged for comparable service, may be 
        expended from the emergency fund authorized by this section for 
        Federal-aid highways.

    ``(e) Tribal Transportation Facilities, Federal Lands Transportation 
Facilities, and Public Roads on Federal Lands.--
            ``(1) Definition of open to public travel.--In this 
        subsection, the term `open to public travel' means, with respect 
        to a road, that, except during scheduled periods, extreme 
        weather conditions, or emergencies, the road is open to the 
        general public for use with a standard passenger vehicle, 
        without restrictive gates or prohibitive signs or regulations, 
        other than for general traffic control or restrictions based on 
        size, weight, or class of registration.
            ``(2) Expenditure of funds.--Notwithstanding subsection 
        (d)(1), the Secretary may expend funds from the emergency fund 
        authorized by this section, independently or in cooperation with 
        any other branch of the Federal Government, a State agency, a 
        tribal government, an organization, or a person, for the repair 
        or reconstruction of tribal transportation facilities, Federal 
        lands transportation facilities, and other federally owned roads 
        that are open to public travel, whether or not those facilities 
        are Federal-aid highways.
            ``(3) Reimbursement.--
                    ``(A) In general.--The Secretary may reimburse 
                Federal and State agencies (including political 
                subdivisions) for expenditures made for projects 
                determined eligible under this section, including 
                expenditures for emergency repairs made before a 
                determination of eligibility.
                    ``(B) Transfers.--With respect to reimbursements 
                described in subparagraph (A)--

[[Page 126 STAT. 440]]

                          ``(i) those reimbursements to Federal agencies 
                      and Indian tribal governments shall be transferred 
                      to the account from which the expenditure was 
                      made, or to a similar account that remains 
                      available for obligation; and
                          ``(ii) the budget authority associated with 
                      the expenditure shall be restored to the agency 
                      from which the authority was derived and shall be 
                      available for obligation until the end of the 
                      fiscal year following the year in which the 
                      transfer occurs.

    ``(f) Treatment of Territories.--For purposes of this section, the 
Virgin Islands, Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands shall be considered to be States and parts of 
the United States, and the chief executive officer of each such 
territory shall be considered to be a Governor of a State.
    ``(g) Protecting Public Safety and Maintaining Roadways.--The 
Secretary may use not more than 5 percent of amounts from the emergency 
fund authorized by this section to carry out projects that the Secretary 
determines are necessary to protect the public safety or to maintain or 
protect roadways that are included within the scope of an emergency 
declaration by the Governor of the State or by the President, in 
accordance with this section, and the Governor deems to be an ongoing 
concern in order to maintain vehicular traffic on the roadway.''.
SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

    (a) Eligible Projects.--Section 133(b) of title 23, United States 
Code, is amended--
            (1) in the matter preceding paragraph (1) by striking 
        ``section 104(b)(3)'' and inserting ``section 104(b)(2)'';
            (2) by striking paragraph (1);
            (3) by redesignating paragraphs (2) through (15) as 
        paragraphs (5) through (18), respectively;
            (4) by inserting before paragraph (5) (as so redesignated) 
        the following:
            ``(1) Construction, reconstruction, rehabilitation, 
        resurfacing, restoration, preservation, or operational 
        improvements for highways, including construction of designated 
        routes of the Appalachian development highway system and local 
        access roads under section 14501 of title 40.
            ``(2) Replacement (including replacement with fill 
        material), rehabilitation, preservation, protection (including 
        painting, scour countermeasures, seismic retrofits, impact 
        protection measures, security countermeasures, and protection 
        against extreme events) and application of calcium magnesium 
        acetate, sodium acetate/formate, or other environmentally 
        acceptable, minimally corrosive anti-icing and deicing 
        compositions for bridges (and approaches to bridges and other 
        elevated structures) and tunnels on public roads of all 
        functional classifications, including any such construction or 
        reconstruction necessary to accommodate other transportation 
        modes.
            ``(3) Construction of a new bridge or tunnel at a new 
        location on a Federal-aid highway.
            ``(4) Inspection and evaluation of bridges and tunnels and 
        training of bridge and tunnel inspectors (as defined in section

[[Page 126 STAT. 441]]

        144), and inspection and evaluation of other highway assets 
        (including signs, retaining walls, and drainage structures).'';
            (5) by striking paragraph (6) (as so redesignated) and 
        inserting the following:
            ``(6) Carpool projects, fringe and corridor parking 
        facilities and programs, including electric vehicle and natural 
        gas vehicle infrastructure in accordance with section 137, 
        bicycle transportation and pedestrian walkways in accordance 
        with section 217, and the modifications of public sidewalks to 
        comply with the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.).'';
            (6) by striking paragraph (7) (as so redesignated) and 
        inserting the following:
            ``(7) Highway and transit safety infrastructure improvements 
        and programs, installation of safety barriers and nets on 
        bridges, hazard eliminations, projects to mitigate hazards 
        caused by wildlife, and railway-highway grade crossings.'';
            (7) in paragraph (11) (as so redesignated) by striking 
        ``enhancement activities'' and inserting ``alternatives'';
            (8) by striking paragraph (14) (as so redesignated) and 
        inserting the following:
            ``(14) Environmental mitigation efforts relating to projects 
        funded under this title in the same manner and to the same 
        extent as such activities are eligible under section 119(g).''; 
        and
            (9) by inserting after paragraph (18) (as so redesignated) 
        the following:
            ``(19) Projects and strategies designed to support 
        congestion pricing, including electric toll collection and 
        travel demand management strategies and programs.
            ``(20) Recreational trails projects eligible for funding 
        under section 206.
            ``(21) Construction of ferry boats and ferry terminal 
        facilities eligible for funding under section 129(c).
            ``(22) Border infrastructure projects eligible for funding 
        under section 1303 of the SAFETEA-LU (23 U.S.C. 101 note; Public 
        Law 109-59).
            ``(23) Truck parking facilities eligible for funding under 
        section 1401 of the MAP-21.
            ``(24) Development and implementation of a State asset 
        management plan for the National Highway System in accordance 
        with section 119, including data collection, maintenance, and 
        integration and the costs associated with obtaining, updating, 
        and licensing software and equipment required for risk based 
        asset management and performance based management, and for 
        similar activities related to the development and implementation 
        of a performance based management program for other public 
        roads.
            ``(25) A project that, if located within the boundaries of a 
        port terminal, includes only such surface transportation 
        infrastructure modifications as are necessary to facilitate 
        direct intermodal interchange, transfer, and access into and out 
        of the port.
            ``(26) Construction and operational improvements for any 
        minor collector if--
                    ``(A) the minor collector, and the project to be 
                carried out with respect to the minor collector, are in 
                the same

[[Page 126 STAT. 442]]

                corridor as, and in proximity to, a Federal-aid highway 
                designated as part of the National Highway System;
                    ``(B) the construction or improvements will enhance 
                the level of service on the Federal-aid highway 
                described in subparagraph (A) and improve regional 
                traffic flow; and
                    ``(C) the construction or improvements are more 
                cost-effective, as determined by a benefit-cost 
                analysis, than an improvement to the Federal-aid highway 
                described in subparagraph (A).''.

    (b) Location of Projects.--Section 133 of title 23, United States 
Code, is amended by striking subsection (c) and inserting the following:
    ``(c) Location of Projects.--Surface transportation program projects 
may not be undertaken on roads functionally classified as local or rural 
minor collectors unless the roads were on a Federal-aid highway system 
on January 1, 1991, except--
            ``(1) as provided in subsection (g);
            ``(2) for projects described in paragraphs (2), (4), (6), 
        (7), (11), (20), (25), and (26) of subsection (b); and
            ``(3) as approved by the Secretary.''.

    (c) Allocation of Apportioned Funds.--Section 133 of the title 23, 
United States Code, is amended by striking subsection (d) and inserting 
the following:
    ``(d) Allocations of Apportioned Funds to Areas Based on 
Population.--
            ``(1) Calculation.--Of the funds apportioned to a State 
        under section 104(b)(2)--
                    ``(A) 50 percent for a fiscal year shall be 
                obligated under this section, in proportion to their 
                relative shares of the population of the State--
                          ``(i) in urbanized areas of the State with an 
                      urbanized area population of over 200,000;
                          ``(ii) in areas of the State other than urban 
                      areas with a population greater than 5,000; and
                          ``(iii) in other areas of the State; and
                    ``(B) 50 percent may be obligated in any area of the 
                State.
            ``(2) Metropolitan areas.--Funds attributed to an urbanized 
        area under paragraph (1)(A)(i) may be obligated in the 
        metropolitan area established under section 134 that encompasses 
        the urbanized area.
            ``(3) Consultation with regional transportation planning 
        organizations.--For purposes of paragraph (1)(A)(ii), before 
        obligating funding attributed to an area with a population 
        greater than 5,000 and less than 200,000, a State shall consult 
        with the regional transportation planning organizations that 
        represent the area, if any.
            ``(4) Distribution among urbanized areas of over 200,000 
        population.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amount of funds that a State is 
                required to obligate under paragraph (1)(A)(i) shall be 
                obligated in urbanized areas described in paragraph 
                (1)(A)(i) based on the relative population of the areas.
                    ``(B) Other factors.--The State may obligate the 
                funds described in subparagraph (A) based on other 
                factors if the State and the relevant metropolitan 
                planning

[[Page 126 STAT. 443]]

                organizations jointly apply to the Secretary for the 
                permission to base the obligation on other factors and 
                the Secretary grants the request.
            ``(5) Applicability of planning requirements.--Programming 
        and expenditure of funds for projects under this section shall 
        be consistent with sections 134 and 135.''.

    (d) Administration.--Section 133 of title 23, United States Code, is 
amended by striking subsection (e) and inserting the following:
    ``(e) Administration.--
            ``(1) Submission of project agreement.--For each fiscal 
        year, each State shall submit a project agreement that--
                    ``(A) <<NOTE: Certification.>> certifies that the 
                State will meet all the requirements of this section; 
                and
                    ``(B) <<NOTE: Notification.>> notifies the Secretary 
                of the amount of obligations needed to carry out the 
                program under this section.
            ``(2) Request for adjustments of amounts.--Each State shall 
        request from the Secretary such adjustments to the amount of 
        obligations referred to in paragraph (1)(B) as the State 
        determines to be necessary.
            ``(3) Effect of approval by the secretary.--Approval by the 
        Secretary of a project agreement under paragraph (1) shall be 
        deemed a contractual obligation of the United States to pay 
        surface transportation program funds made available under this 
        title.''.

    (e) Obligation Authority.--Section 133(f)(1) of title 23, United 
States Code, is amended by striking ``2004 through 2006 and the period 
of fiscal years 2007 through 2009'' and inserting ``2011 through 2014''.
    (f) Bridges Not on Federal-aid Highways.--Section 133 of the title 
23, United States Code, is amended by adding at the end the following:
    ``(g) Bridges Not on Federal-aid Highways.--
            ``(1) Definition of off-system bridge.--In this subsection, 
        the term `off-system bridge' means a highway bridge located on a 
        public road, other than a bridge on a Federal-aid highway.
            ``(2) Special rule.--
                    ``(A) Set-aside.--Of the amounts apportioned to a 
                State for fiscal year 2013 and each fiscal year 
                thereafter under this section, the State shall obligate 
                for activities described in subsection (b)(2) for off-
                system bridges an amount that is not less than 15 
                percent of the amount of funds apportioned to the State 
                for the highway bridge program for fiscal year 2009, 
                except that amounts allocated under subsection (d) shall 
                not be obligated to carry out this subsection.
                    ``(B) Reduction of expenditures.--The Secretary, 
                after consultation with State and local officials, may 
                reduce the requirement for expenditures for off-system 
                bridges under subparagraph (A) with respect to the State 
                if the Secretary determines that the State has 
                inadequate needs to justify the expenditure.
            ``(3) Credit for bridges not on federal-aid highways.--
        Notwithstanding any other provision of law, with respect to any 
        project not on a Federal-aid highway for the replacement of a 
        bridge or rehabilitation of a bridge that is wholly funded from 
        State and local sources, is eligible for Federal funds under

[[Page 126 STAT. 444]]

        this section, is noncontroversial, is certified by the State to 
        have been carried out in accordance with all standards 
        applicable to such projects under this section, and is 
        determined by the Secretary upon completion to be no longer a 
        deficient bridge--
                    ``(A) any amount expended after the date of 
                enactment of this subsection from State and local 
                sources for the project in excess of 20 percent of the 
                cost of construction of the project may be credited to 
                the non-Federal share of the cost of other bridge 
                projects in the State that are eligible for Federal 
                funds under this section; and
                    ``(B) that crediting shall be conducted in 
                accordance with procedures established by the Secretary.

    ``(h) Special Rule for Areas of Less Than 5,000 Population.--
            ``(1) Special rule.--Notwithstanding subsection (c), and 
        except as provided in paragraph (2), up to 15 percent of the 
        amounts required to be obligated by a State under subsection 
        (d)(1)(A)(iii) for each of fiscal years 2013 through 2014 may be 
        obligated on roads functionally classified as minor collectors.
            ``(2) Suspension.--The Secretary may suspend the application 
        of paragraph (1) with respect to a State if the Secretary 
        determines that the authority provided under paragraph (1) is 
        being used excessively by the State.''.
SEC. 1109. WORKFORCE DEVELOPMENT.

    (a) On-the-job Training.--Section 140(b) of title 23, United States 
Code, is amended--
            (1) in the second sentence, by striking ``Whenever 
        apportionments are made under section 104(b)(3) of this title,'' 
        and inserting ``From administrative funds made available under 
        section 104(a),''; and
            (2) in the fourth sentence, by striking ``and the bridge 
        program under section 144''.

    (b) Disadvantaged Business Enterprise.--Section 140(c) of title 23, 
United States Code, is amended in the second sentence by striking 
``Whenever apportionments are made under section 104(b)(3),'' and 
inserting ``From administrative funds made available under section 
104(a),''.
SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

    Section 143 of title 23, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funding.--
                    ``(A) In general.--From administrative funds made 
                available under section 104(a), the Secretary shall 
                deduct such sums as are necessary, not to exceed 
                $10,000,000 for each of fiscal years 2013 and 2014, to 
                carry out this section.
                    ``(B) Allocation of funds.--Funds made available to 
                carry out this section may be allocated to the Internal 
                Revenue Service and the States at the discretion of the 
                Secretary, except that of funds so made available for 
                each fiscal year, $2,000,000 shall be available only to 
                carry out intergovernmental enforcement efforts, 
                including research and training.''; and

[[Page 126 STAT. 445]]

                    (B) in paragraph (8) by striking ``section 
                104(b)(3)'' and inserting ``section 104(b)(2)''; and
            (2) in subsection (c)(3) by striking ``for each of fiscal 
        years 2005 through 2009,'' and inserting ``for each fiscal 
        year,''.
SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION 
                          STANDARDS.

    (a) In General.--Section 144 of title 23, United States Code, is 
amended to read as follows:
``Sec. 144. National bridge and tunnel inventory and inspection 
                standards

    ``(a) Findings and Declarations.--
            ``(1) Findings.--Congress finds that--
                    ``(A) the condition of the bridges of the United 
                States has improved since the date of enactment of the 
                Transportation Equity Act for the 21st Century (Public 
                Law 105-178; 112 Stat. 107), yet continued improvement 
                to bridge conditions is essential to protect the safety 
                of the traveling public and allow for the efficient 
                movement of people and goods on which the economy of the 
                United States relies; and
                    ``(B) the systematic preventative maintenance of 
                bridges, and replacement and rehabilitation of deficient 
                bridges, should be undertaken through an overall asset 
                management approach to transportation investment.
            ``(2) Declarations.--Congress declares that it is in the 
        vital interest of the United States--
                    ``(A) to inventory, inspect, and improve the 
                condition of the highway bridges and tunnels of the 
                United States;
                    ``(B) to use a data-driven, risk-based approach and 
                cost-effective strategy for systematic preventative 
                maintenance, replacement, and rehabilitation of highway 
                bridges and tunnels to ensure safety and extended 
                service life;
                    ``(C) to use performance-based bridge management 
                systems to assist States in making timely investments;
                    ``(D) to ensure accountability and link performance 
                outcomes to investment decisions; and
                    ``(E) to ensure connectivity and access for 
                residents of rural areas of the United States through 
                strategic investments in National Highway System bridges 
                and bridges on all public roads.

    ``(b) National Bridge and Tunnel Inventories.--The Secretary, in 
consultation with the States and Federal agencies with jurisdiction over 
highway bridges and tunnels, shall--
            ``(1) inventory all highway bridges on public roads, on and 
        off Federal-aid highways, including tribally owned and Federally 
        owned bridges, that are bridges over waterways, other 
        topographical barriers, other highways, and railroads;
            ``(2) inventory all tunnels on public roads, on and off 
        Federal-aid highways, including tribally owned and Federally 
        owned tunnels;
            ``(3) classify the bridges according to serviceability, 
        safety, and essentiality for public use, including the potential 
        impacts to emergency evacuation routes and to regional and 
        national freight and passenger mobility if the serviceability of 
        the bridge is restricted or diminished;

[[Page 126 STAT. 446]]

            ``(4) based on that classification, assign each a risk-based 
        priority for systematic preventative maintenance, replacement, 
        or rehabilitation; and
            ``(5) determine the cost of replacing each structurally 
        deficient bridge identified under this subsection with a 
        comparable facility or the cost of rehabilitating the bridge.

    ``(c) General Bridge Authority.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the General Bridge 
        Act of 1946 (33 U.S.C. 525 et seq.) shall apply to bridges 
        authorized to be replaced, in whole or in part, by this title.
            ``(2) Exception.--Section 502(b) of the General Bridge Act 
        of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 3, 
        1899 (33 U.S.C. 401), shall not apply to any bridge constructed, 
        reconstructed, rehabilitated, or replaced with assistance under 
        this title, if the bridge is over waters that--
                    ``(A) are not used and are not susceptible to use in 
                the natural condition of the bridge or by reasonable 
                improvement as a means to transport interstate or 
                foreign commerce; and
                    ``(B) are--
                          ``(i) not tidal; or
                          ``(ii) if tidal, used only by recreational 
                      boating, fishing, and other small vessels that are 
                      less than 21 feet in length.

    ``(d) Inventory Updates and Reports.--
            ``(1) In general.--The Secretary shall--
                    ``(A) annually revise the inventories authorized by 
                subsection (b); and
                    ``(B) submit to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                a report on the inventories.
            ``(2) Inspection report.--Not later than 2 years after the 
        date of enactment of the MAP-21, each State and appropriate 
        Federal agency shall report element level data to the Secretary, 
        as each bridge is inspected pursuant to this section, for all 
        highway bridges on the National Highway System.
            ``(3) Guidance.--The Secretary shall provide guidance to 
        States and Federal agencies for implementation of this 
        subsection, while respecting the existing inspection schedule of 
        each State.
            ``(4) Bridges not on national highway system.--The Secretary 
        shall--
                    ``(A) <<NOTE: Study.>> conduct a study on the 
                benefits, cost-effectiveness, and feasibility of 
                requiring element-level data collection for bridges not 
                on the National Highway System; and
                    ``(B) submit to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                a report on the results of the study.

    ``(e) Bridges Without Taxing Powers.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any bridge that is owned and operated by an agency that 
        does not have taxing powers and whose functions include 
        operating a federally assisted public transit system subsidized 
        by toll revenues shall be eligible for assistance under this

[[Page 126 STAT. 447]]

        title, but the amount of such assistance shall in no event 
        exceed the cumulative amount which such agency has expended for 
        capital and operating costs to subsidize such transit system.
            ``(2) Insufficient assets.--Before authorizing an 
        expenditure of funds under this subsection, the Secretary shall 
        determine that the applicant agency has insufficient reserves, 
        surpluses, and projected revenues (over and above those required 
        for bridge and transit capital and operating costs) to fund the 
        bridge project or activity eligible for assistance under this 
        title.
            ``(3) Crediting of non-federal funds.--Any non-Federal funds 
        expended for the seismic retrofit of the bridge may be credited 
        toward the non-Federal share required as a condition of receipt 
        of any Federal funds for seismic retrofit of the bridge made 
        available after the date of the expenditure.

    ``(f) Replacement of Destroyed Bridges and Ferry Boat Service.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a State may use the funds apportioned under section 
        104(b)(2) to construct any bridge that replaces--
                    ``(A) any low water crossing (regardless of the 
                length of the low water crossing);
                    ``(B) any bridge that was destroyed prior to January 
                1, 1965;
                    ``(C) any ferry that was in existence on January 1, 
                1984; or
                    ``(D) any road bridge that is rendered obsolete as a 
                result of a Corps of Engineers flood control or 
                channelization project and is not rebuilt with funds 
                from the Corps of Engineers.
            ``(2) Federal share.--The Federal share payable on any 
        bridge construction carried out under paragraph (1) shall be 80 
        percent of the cost of the construction.

    ``(g) Historic Bridges.--
            ``(1) Definition of historic bridge.--In this subsection, 
        the term `historic bridge' means any bridge that is listed on, 
        or eligible for listing on, the National Register of Historic 
        Places.
            ``(2) Coordination.--The Secretary shall, in cooperation 
        with the States, encourage the retention, rehabilitation, 
        adaptive reuse, and future study of historic bridges.
            ``(3) State inventory.--The Secretary shall require each 
        State to complete an inventory of all bridges on and off 
        Federal-aid highways to determine the historic significance of 
        the bridges.
            ``(4) Eligibility.--
                    ``(A) In general.--Subject to subparagraph (B), 
                reasonable costs associated with actions to preserve, or 
                reduce the impact of a project under this chapter on, 
                the historic integrity of a historic bridge shall be 
                eligible as reimbursable project costs under section 133 
                if the load capacity and safety features of the historic 
                bridge are adequate to serve the intended use for the 
                life of the historic bridge.
                    ``(B) Bridges not used for vehicle traffic.--In the 
                case of a historic bridge that is no longer used for 
                motorized vehicular traffic, the costs eligible as 
                reimbursable project

[[Page 126 STAT. 448]]

                costs pursuant to this chapter shall not exceed the 
                estimated cost of demolition of the historic bridge.
            ``(5) Preservation.--Any State that proposes to demolish a 
        historic bridge for a replacement project with funds made 
        available to carry out this section shall first make the 
        historic bridge available for donation to a State, locality, or 
        responsible private entity if the State, locality, or 
        responsible entity enters into an agreement--
                    ``(A) to maintain the bridge and the features that 
                give the historic bridge its historic significance; and
                    ``(B) to assume all future legal and financial 
                responsibility for the historic bridge, which may 
                include an agreement to hold the State transportation 
                department harmless in any liability action.
            ``(6) Costs incurred.--
                    ``(A) In general.--Costs incurred by the State to 
                preserve a historic bridge (including funds made 
                available to the State, locality, or private entity to 
                enable it to accept the bridge) shall be eligible as 
                reimbursable project costs under this chapter in an 
                amount not to exceed the cost of demolition.
                    ``(B) Additional funding.--Any bridge preserved 
                pursuant to this paragraph shall not be eligible for any 
                other funds authorized pursuant to this title.

    ``(h) National Bridge and Tunnel Inspection Standards.--
            ``(1) Requirement.--
                    ``(A) In general.--The Secretary shall establish and 
                maintain inspection standards for the proper inspection 
                and evaluation of all highway bridges and tunnels for 
                safety and serviceability.
                    ``(B) Uniformity.--The standards under this 
                subsection shall be designed to ensure uniformity of the 
                inspections and evaluations.
            ``(2) Minimum requirements of inspection standards.--The 
        standards established under paragraph (1) shall, at a minimum--
                    ``(A) specify, in detail, the method by which the 
                inspections shall be carried out by the States, Federal 
                agencies, and tribal governments;
                    ``(B) establish the maximum time period between 
                inspections;
                    ``(C) establish the qualifications for those charged 
                with carrying out the inspections;
                    ``(D) require each State, Federal agency, and tribal 
                government to maintain and make available to the 
                Secretary on request--
                          ``(i) <<NOTE: Reports.>> written reports on 
                      the results of highway bridge and tunnel 
                      inspections and notations of any action taken 
                      pursuant to the findings of the inspections; and
                          ``(ii) <<NOTE: Inventory data.>> current 
                      inventory data for all highway bridges and tunnels 
                      reflecting the findings of the most recent highway 
                      bridge and tunnel inspections conducted; and
                    ``(E) <<NOTE: Procedures. Certification.>> establish 
                a procedure for national certification of highway bridge 
                inspectors and tunnel inspectors.
            ``(3) State compliance with inspection standards.--The 
        Secretary shall, at a minimum--

[[Page 126 STAT. 449]]

                    ``(A) establish, in consultation with the States, 
                Federal agencies, and interested and knowledgeable 
                private organizations and individuals, procedures to 
                conduct reviews of State compliance with--
                          ``(i) the standards established under this 
                      subsection; and
                          ``(ii) the calculation or reevaluation of 
                      bridge load ratings; and
                    ``(B) <<NOTE: Procedures. Reports.>> establish, in 
                consultation with the States, Federal agencies, and 
                interested and knowledgeable private organizations and 
                individuals, procedures for States to follow in 
                reporting to the Secretary--
                          ``(i) critical findings relating to structural 
                      or safety-related deficiencies of highway bridges 
                      and tunnels; and
                          ``(ii) monitoring activities and corrective 
                      actions taken in response to a critical finding 
                      described in clause (i).
            ``(4) <<NOTE: Deadlines.>> Reviews of state compliance.--
                    ``(A) In general.--The Secretary shall annually 
                review State compliance with the standards established 
                under this section.
                    ``(B) Noncompliance.--If an annual review in 
                accordance with subparagraph (A) identifies 
                noncompliance by a State, the Secretary shall--
                          ``(i) <<NOTE: Reports.>> issue a report 
                      detailing the issues of the noncompliance by 
                      December 31 of the calendar year in which the 
                      review was made; and
                          ``(ii) provide the State an opportunity to 
                      address the noncompliance by--
                                    ``(I) <<NOTE: Action 
                                plan.>> developing a corrective action 
                                plan to remedy the noncompliance; or
                                    ``(II) resolving the issues of 
                                noncompliance not later than 45 days 
                                after the date of notification.
            ``(5) Penalty for noncompliance.--
                    ``(A) <<NOTE: Deadlines.>> In general.--If a State 
                fails to satisfy the requirements of paragraph (4)(B) by 
                August 1 of the calendar year following the year of a 
                finding of noncompliance, the Secretary shall, on 
                October 1 of that year, and each year thereafter as may 
                be necessary, require the State to dedicate funds 
                apportioned to the State under sections 119 and 133 
                after the date of enactment of the MAP-21 to correct the 
                noncompliance with the minimum inspection standards 
                established under this subsection.
                    ``(B) Amount.--The amount of the funds to be 
                directed to correcting noncompliance in accordance with 
                subparagraph (A) shall--
                          ``(i) <<NOTE: Determination.>> be determined 
                      by the State based on an analysis of the actions 
                      needed to address the noncompliance; and
                          ``(ii) require approval by the Secretary.
            ``(6) <<NOTE: Deadline.>> Update of standards.--Not later 
        than 3 years after the date of enactment of the MAP-21, the 
        Secretary shall update inspection standards to cover--
                    ``(A) the methodology, training, and qualifications 
                for inspectors; and
                    ``(B) the frequency of inspection.

[[Page 126 STAT. 450]]

            ``(7) Risk-based approach.--In carrying out the revisions 
        required by paragraph (6), the Secretary shall consider a risk-
        based approach to determining the frequency of bridge 
        inspections.

    ``(i) Training Program for Bridge and Tunnel Inspectors.--
            ``(1) In general.--The Secretary, in cooperation with the 
        State transportation departments, shall maintain a program 
        designed to train appropriate personnel to carry out highway 
        bridge and tunnel inspections.
            ``(2) Revisions.--The training program shall be revised from 
        time to time to take into account new and improved techniques.

    ``(j) Availability of Funds.--In carrying out this section--
            ``(1) the Secretary may use funds made available to the 
        Secretary under sections 104(a) and 503;
            ``(2) a State may use amounts apportioned to the State under 
        section 104(b)(1) and 104(b)(3);
            ``(3) an Indian tribe may use funds made available to the 
        Indian tribe under section 202; and
            ``(4) a Federal agency may use funds made available to the 
        agency under section 503.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
144 and inserting the following:

``144. National bridge and tunnel inventory and inspection standards.''.

SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

    (a) In General.--Section 148 of title 23, United States Code, is 
amended to read as follows:
``Sec. 148. Highway safety improvement program

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) High risk rural road.--The term `high risk rural road' 
        means any roadway functionally classified as a rural major or 
        minor collector or a rural local road with significant safety 
        risks, as defined by a State in accordance with an updated State 
        strategic highway safety plan.
            ``(2) Highway basemap.--The term `highway basemap' means a 
        representation of all public roads that can be used to geolocate 
        attribute data on a roadway.
            ``(3) Highway safety improvement program.--The term `highway 
        safety improvement program' means projects, activities, plans, 
        and reports carried out under this section.
            ``(4) Highway safety improvement project.--
                    ``(A) In general.--The term `highway safety 
                improvement project' means strategies, activities, and 
                projects on a public road that are consistent with a 
                State strategic highway safety plan and--
                          ``(i) correct or improve a hazardous road 
                      location or feature; or
                          ``(ii) address a highway safety problem.
                    ``(B) Inclusions.--The term `highway safety 
                improvement project' includes, but is not limited to, a 
                project for 1 or more of the following:
                          ``(i) An intersection safety improvement.

[[Page 126 STAT. 451]]

                          ``(ii) Pavement and shoulder widening 
                      (including addition of a passing lane to remedy an 
                      unsafe condition).
                          ``(iii) Installation of rumble strips or 
                      another warning device, if the rumble strips or 
                      other warning devices do not adversely affect the 
                      safety or mobility of bicyclists and pedestrians, 
                      including persons with disabilities.
                          ``(iv) Installation of a skid-resistant 
                      surface at an intersection or other location with 
                      a high frequency of crashes.
                          ``(v) An improvement for pedestrian or 
                      bicyclist safety or safety of persons with 
                      disabilities.
                          ``(vi) Construction and improvement of a 
                      railway-highway grade crossing safety feature, 
                      including installation of protective devices.
                          ``(vii) The conduct of a model traffic 
                      enforcement activity at a railway-highway 
                      crossing.
                          ``(viii) Construction of a traffic calming 
                      feature.
                          ``(ix) Elimination of a roadside hazard.
                          ``(x) Installation, replacement, and other 
                      improvement of highway signage and pavement 
                      markings, or a project to maintain minimum levels 
                      of retroreflectivity, that addresses a highway 
                      safety problem consistent with a State strategic 
                      highway safety plan.
                          ``(xi) Installation of a priority control 
                      system for emergency vehicles at signalized 
                      intersections.
                          ``(xii) Installation of a traffic control or 
                      other warning device at a location with high crash 
                      potential.
                          ``(xiii) Transportation safety planning.
                          ``(xiv) Collection, analysis, and improvement 
                      of safety data.
                          ``(xv) Planning integrated interoperable 
                      emergency communications equipment, operational 
                      activities, or traffic enforcement activities 
                      (including police assistance) relating to work 
                      zone safety.
                          ``(xvi) Installation of guardrails, barriers 
                      (including barriers between construction work 
                      zones and traffic lanes for the safety of road 
                      users and workers), and crash attenuators.
                          ``(xvii) The addition or retrofitting of 
                      structures or other measures to eliminate or 
                      reduce crashes involving vehicles and wildlife.
                          ``(xviii) Installation of yellow-green signs 
                      and signals at pedestrian and bicycle crossings 
                      and in school zones.
                          ``(xix) Construction and operational 
                      improvements on high risk rural roads.
                          ``(xx) Geometric improvements to a road for 
                      safety purposes that improve safety.
                          ``(xxi) A road safety audit.
                          ``(xxii) Roadway safety infrastructure 
                      improvements consistent with the recommendations 
                      included in the publication of the Federal Highway 
                      Administration entitled `Highway Design Handbook 
                      for Older

[[Page 126 STAT. 452]]

                      Drivers and Pedestrians' (FHWA-RD-01-103), dated 
                      May 2001 or as subsequently revised and updated.
                          ``(xxiii) Truck parking facilities eligible 
                      for funding under section 1401 of the MAP-21.
                          ``(xxiv) Systemic safety improvements.
            ``(5) Model inventory of roadway elements.--The term `model 
        inventory of roadway elements' means the listing and 
        standardized coding by the Federal Highway Administration of 
        roadway and traffic data elements critical to safety management, 
        analysis, and decisionmaking.
            ``(6) Project to maintain minimum levels of 
        retroreflectivity.--The term `project to maintain minimum levels 
        of retroreflectivity' means a project that is designed to 
        maintain a highway sign or pavement marking retroreflectivity at 
        or above the minimum levels prescribed in Federal or State 
        regulations.
            ``(7) Road safety audit.--The term `road safety audit' means 
        a formal safety performance examination of an existing or future 
        road or intersection by an independent multidisciplinary audit 
        team.
            ``(8) Road users.--The term `road user' means a motorist, 
        passenger, public transportation operator or user, truck driver, 
        bicyclist, motorcyclist, or pedestrian, including a person with 
        disabilities.
            ``(9) Safety data.--
                    ``(A) In general.--The term `safety data' means 
                crash, roadway, and traffic data on a public road.
                    ``(B) Inclusion.--The term `safety data' includes, 
                in the case of a railway-highway grade crossing, the 
                characteristics of highway and train traffic, licensing, 
                and vehicle data.
            ``(10) Safety project under any other section.--
                    ``(A) In general.--The term `safety project under 
                any other section' means a project carried out for the 
                purpose of safety under any other section of this title.
                    ``(B) Inclusion.--The term `safety project under any 
                other section' includes--
                          ``(i) a project consistent with the State 
                      strategic highway safety plan that promotes the 
                      awareness of the public and educates the public 
                      concerning highway safety matters (including 
                      motorcycle safety);
                          ``(ii) a project to enforce highway safety 
                      laws; and
                          ``(iii) a project to provide infrastructure 
                      and infrastructure-related equipment to support 
                      emergency services.
            ``(11) State highway safety improvement program.--The term 
        `State highway safety improvement program' means a program of 
        highway safety improvement projects, activities, plans and 
        reports carried out as part of the Statewide transportation 
        improvement program under section 135(g).
            ``(12) State strategic highway safety plan.--The term `State 
        strategic highway safety plan' means a comprehensive plan, based 
        on safety data, developed by a State transportation department 
        that--
                    ``(A) is developed after consultation with--
                          ``(i) a highway safety representative of the 
                      Governor of the State;

[[Page 126 STAT. 453]]

                          ``(ii) regional transportation planning 
                      organizations and metropolitan planning 
                      organizations, if any;
                          ``(iii) representatives of major modes of 
                      transportation;
                          ``(iv) State and local traffic enforcement 
                      officials;
                          ``(v) a highway-rail grade crossing safety 
                      representative of the Governor of the State;
                          ``(vi) representatives conducting a motor 
                      carrier safety program under section 31102, 31106, 
                      or 31309 of title 49;
                          ``(vii) motor vehicle administration agencies;
                          ``(viii) county transportation officials;
                          ``(ix) State representatives of nonmotorized 
                      users; and
                          ``(x) other major Federal, State, tribal, and 
                      local safety stakeholders;
                    ``(B) analyzes and makes effective use of State, 
                regional, local, or tribal safety data;
                    ``(C) addresses engineering, management, operation, 
                education, enforcement, and emergency services elements 
                (including integrated, interoperable emergency 
                communications) of highway safety as key factors in 
                evaluating highway projects;
                    ``(D) considers safety needs of, and high-fatality 
                segments of, all public roads, including non-State-owned 
                public roads and roads on tribal land;
                    ``(E) considers the results of State, regional, or 
                local transportation and highway safety planning 
                processes;
                    ``(F) describes a program of strategies to reduce or 
                eliminate safety hazards;
                    ``(G) is approved by the Governor of the State or a 
                responsible State agency;
                    ``(H) is consistent with section 135(g); and
                    ``(I) is updated and submitted to the Secretary for 
                approval as required under subsection (d)(2).
            ``(13) Systemic safety improvement.--The term `systemic 
        safety improvement' means an improvement that is widely 
        implemented based on high-risk roadway features that are 
        correlated with particular crash types, rather than crash 
        frequency.

    ``(b) Program.--
            ``(1) In general.--The Secretary shall carry out a highway 
        safety improvement program.
            ``(2) Purpose.--The purpose of the highway safety 
        improvement program shall be to achieve a significant reduction 
        in traffic fatalities and serious injuries on all public roads, 
        including non-State-owned public roads and roads on tribal land.

    ``(c) Eligibility.--
            ``(1) In general.--To obligate funds apportioned under 
        section 104(b)(3) to carry out this section, a State shall have 
        in effect a State highway safety improvement program under which 
        the State--
                    ``(A) <<NOTE: Strategic plan.>> develops, 
                implements, and updates a State strategic highway safety 
                plan that identifies and analyzes highway safety 
                problems and opportunities as provided in subsections 
                (a)(12) and (d);

[[Page 126 STAT. 454]]

                    ``(B) produces a program of projects or strategies 
                to reduce identified safety problems; and
                    ``(C) <<NOTE: Evaluation.>> evaluates the strategic 
                highway safety plan on a regularly recurring basis in 
                accordance with subsection (d)(1) to ensure the accuracy 
                of the data and priority of proposed strategies.
            ``(2) Identification and analysis of highway safety problems 
        and opportunities.--As part of the State highway safety 
        improvement program, a State shall--
                    ``(A) have in place a safety data system with the 
                ability to perform safety problem identification and 
                countermeasure analysis--
                          ``(i) to improve the timeliness, accuracy, 
                      completeness, uniformity, integration, and 
                      accessibility of the safety data on all public 
                      roads, including non-State-owned public roads and 
                      roads on tribal land in the State;
                          ``(ii) to evaluate the effectiveness of data 
                      improvement efforts;
                          ``(iii) to link State data systems, including 
                      traffic records, with other data systems within 
                      the State;
                          ``(iv) to improve the compatibility and 
                      interoperability of safety data with other State 
                      transportation-related data systems and the 
                      compatibility and interoperability of State safety 
                      data systems with data systems of other States and 
                      national data systems;
                          ``(v) to enhance the ability of the Secretary 
                      to observe and analyze national trends in crash 
                      occurrences, rates, outcomes, and circumstances; 
                      and
                          ``(vi) to improve the collection of data on 
                      nonmotorized crashes;
                    ``(B) based on the analysis required by subparagraph 
                (A)--
                          ``(i) identify hazardous locations, sections, 
                      and elements (including roadside obstacles, 
                      railway-highway crossing needs, and unmarked or 
                      poorly marked roads) that constitute a danger to 
                      motorists (including motorcyclists), bicyclists, 
                      pedestrians, and other highway users;
                          ``(ii) using such criteria as the State 
                      determines to be appropriate, establish the 
                      relative severity of those locations, in terms of 
                      crashes (including crash rates), fatalities, 
                      serious injuries, traffic volume levels, and other 
                      relevant data;
                          ``(iii) identify the number of fatalities and 
                      serious injuries on all public roads by location 
                      in the State;
                          ``(iv) identify highway safety improvement 
                      projects on the basis of crash experience, crash 
                      potential, crash rate, or other data-supported 
                      means; and
                          ``(v) consider which projects maximize 
                      opportunities to advance safety;
                    ``(C) adopt strategic and performance-based goals 
                that--
                          ``(i) address traffic safety, including 
                      behavioral and infrastructure problems and 
                      opportunities on all public roads;
                          ``(ii) focus resources on areas of greatest 
                      need; and

[[Page 126 STAT. 455]]

                          ``(iii) are coordinated with other State 
                      highway safety programs;
                    ``(D) advance the capabilities of the State for 
                safety data collection, analysis, and integration in a 
                manner that--
                          ``(i) complements the State highway safety 
                      program under chapter 4 and the commercial vehicle 
                      safety plan under section 31102 of title 49;
                          ``(ii) includes all public roads, including 
                      public non-State-owned roads and roads on tribal 
                      land;
                          ``(iii) identifies hazardous locations, 
                      sections, and elements on all public roads that 
                      constitute a danger to motorists (including 
                      motorcyclists), bicyclists, pedestrians, persons 
                      with disabilities, and other highway users;
                          ``(iv) includes a means of identifying the 
                      relative severity of hazardous locations described 
                      in clause (iii) in terms of crashes (including 
                      crash rate), serious injuries, fatalities, and 
                      traffic volume levels; and
                          ``(v) improves the ability of the State to 
                      identify the number of fatalities and serious 
                      injuries on all public roads in the State with a 
                      breakdown by functional classification and 
                      ownership in the State;
                    ``(E)(i) determine priorities for the correction of 
                hazardous road locations, sections, and elements 
                (including railway-highway crossing improvements), as 
                identified through safety data analysis;
                    ``(ii) identify opportunities for preventing the 
                development of such hazardous conditions; and
                    ``(iii) establish and implement a schedule of 
                highway safety improvement projects for hazard 
                correction and hazard prevention; and
                    ``(F)(i) <<NOTE: Evaluation.>> establish an 
                evaluation process to analyze and assess results 
                achieved by highway safety improvement projects carried 
                out in accordance with procedures and criteria 
                established by this section; and
                    ``(ii) use the information obtained under clause (i) 
                in setting priorities for highway safety improvement 
                projects.

    ``(d) Updates to Strategic Highway Safety Plans.--
            ``(1) Establishment of requirements.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 1 year after the date of enactment of the MAP-21, 
                the Secretary shall establish requirements for regularly 
                recurring State updates of strategic highway safety 
                plans.
                    ``(B) Contents of updated strategic highway safety 
                plans.--In establishing requirements under this 
                subsection, the Secretary shall ensure that States take 
                into consideration, with respect to updated strategic 
                highway safety plans--
                          ``(i) the findings of road safety audits;
                          ``(ii) the locations of fatalities and serious 
                      injuries;
                          ``(iii) the locations that do not have an 
                      empirical history of fatalities and serious 
                      injuries, but possess risk factors for potential 
                      crashes;
                          ``(iv) rural roads, including all public 
                      roads, commensurate with fatality data;

[[Page 126 STAT. 456]]

                          ``(v) motor vehicle crashes that include 
                      fatalities or serious injuries to pedestrians and 
                      bicyclists;
                          ``(vi) the cost-effectiveness of improvements;
                          ``(vii) improvements to rail-highway grade 
                      crossings; and
                          ``(viii) safety on all public roads, including 
                      non-State-owned public roads and roads on tribal 
                      land.
            ``(2) Approval of updated strategic highway safety plans.--
                    ``(A) In general.--Each State shall--
                          ``(i) update the strategic highway safety 
                      plans of the State in accordance with the 
                      requirements established by the Secretary under 
                      this subsection; and
                          ``(ii) submit the updated plans to the 
                      Secretary, along with a detailed description of 
                      the process used to update the plan.
                    ``(B) Requirements for approval.--The Secretary 
                shall not approve the process for an updated strategic 
                highway safety plan unless--
                          ``(i) the updated strategic highway safety 
                      plan is consistent with the requirements of this 
                      subsection and subsection (a)(12); and
                          ``(ii) the process used is consistent with the 
                      requirements of this subsection.
            ``(3) Penalty for failure to have an approved updated 
        strategic highway safety plan.-- <<NOTE: Deadline.>> If a State 
        does not have an updated strategic highway safety plan with a 
        process approved by the Secretary by August 1 of the fiscal year 
        beginning after the date of establishment of the requirements 
        under paragraph (1), the State shall not be eligible to receive 
        any additional limitation pursuant to the redistribution of the 
        limitation on obligations for Federal-aid highway and highway 
        safety construction programs that occurs after August 1 for each 
        succeeding fiscal year until the fiscal year during which the 
        plan is approved.

    ``(e) Eligible Projects.--
            ``(1) In general.--Funds apportioned to the State under 
        section 104(b)(3) may be obligated to carry out--
                    ``(A) any highway safety improvement project on any 
                public road or publicly owned bicycle or pedestrian 
                pathway or trail;
                    ``(B) as provided in subsection (g); or
                    ``(C) any project to maintain minimum levels of 
                retroreflectivity with respect to a public road, without 
                regard to whether the project is included in an 
                applicable State strategic highway safety plan.
            ``(2) Use of other funding for safety.--
                    ``(A) Effect of section.--Nothing in this section 
                prohibits the use of funds made available under other 
                provisions of this title for highway safety improvement 
                projects.
                    ``(B) Use of other funds.--States are encouraged to 
                address the full scope of the safety needs and 
                opportunities of the States by using funds made 
                available under other provisions of this title (except a 
                provision that specifically prohibits that use).

    ``(f) Data Improvement.--

[[Page 126 STAT. 457]]

            ``(1) Definition of data improvement activities.--In this 
        subsection, the following definitions apply:
                    ``(A) In general.--The term `data improvement 
                activities' means a project or activity to further the 
                capacity of a State to make more informed and effective 
                safety infrastructure investment decisions.
                    ``(B) Inclusions.--The term `data improvement 
                activities' includes a project or activity--
                          ``(i) to create, update, or enhance a highway 
                      basemap of all public roads in a State;
                          ``(ii) to collect safety data, including data 
                      identified as part of the model inventory for 
                      roadway elements, for creation of or use on a 
                      highway basemap of all public roads in a State;
                          ``(iii) to store and maintain safety data in 
                      an electronic manner;
                          ``(iv) to develop analytical processes for 
                      safety data elements;
                          ``(v) to acquire and implement roadway safety 
                      analysis tools; and
                          ``(vi) to support the collection, maintenance, 
                      and sharing of safety data on all public roads and 
                      related systems associated with the analytical 
                      usage of that data.
            ``(2) Model inventory of roadway elements.--The Secretary 
        shall--
                    ``(A) establish a subset of the model inventory of 
                roadway elements that are useful for the inventory of 
                roadway safety; and
                    ``(B) ensure that States adopt and use the subset to 
                improve data collection.

    ``(g) Special Rules.--
            ``(1) High-risk rural road safety.--If the fatality rate on 
        rural roads in a State increases over the most recent 2-year 
        period for which data are available, that State shall be 
        required to obligate in the next fiscal year for projects on 
        high risk rural roads an amount equal to at least 200 percent of 
        the amount of funds the State received for fiscal year 2009 for 
        high risk rural roads under subsection (f) of this section, as 
        in effect on the day before the date of enactment of the MAP-21.
            ``(2) Older drivers.--If traffic fatalities and serious 
        injuries per capita for drivers and pedestrians over the age of 
        65 in a State increases during the most recent 2-year period for 
        which data are available, that State shall be required to 
        include, in the subsequent Strategic Highway Safety Plan of the 
        State, strategies to address the increases in those rates, 
        taking into account the recommendations included in the 
        publication of the Federal Highway Administration entitled 
        `Highway Design Handbook for Older Drivers and Pedestrians' 
        (FHWA-RD-01-103), and dated May 2001, or as subsequently revised 
        and updated.

    ``(h) Reports.--
            ``(1) In general.--A State shall submit to the Secretary a 
        report that--
                    ``(A) describes progress being made to implement 
                highway safety improvement projects under this section;

[[Page 126 STAT. 458]]

                    ``(B) assesses the effectiveness of those 
                improvements; and
                    ``(C) describes the extent to which the improvements 
                funded under this section have contributed to reducing--
                          ``(i) the number and rate of fatalities on all 
                      public roads with, to the maximum extent 
                      practicable, a breakdown by functional 
                      classification and ownership in the State;
                          ``(ii) the number and rate of serious injuries 
                      on all public roads with, to the maximum extent 
                      practicable, a breakdown by functional 
                      classification and ownership in the State; and
                          ``(iii) the occurrences of fatalities and 
                      serious injuries at railway-highway crossings.
            ``(2) Contents; schedule.--The Secretary shall establish the 
        content and schedule for the submission of the report under 
        paragraph (1).
            ``(3) <<NOTE: Public information. Web 
        posting.>> Transparency.--The Secretary shall make strategic 
        highway safety plans submitted under subsection (d) and reports 
        submitted under this subsection available to the public 
        through--
                    ``(A) the website of the Department; and
                    ``(B) such other means as the Secretary determines 
                to be appropriate.
            ``(4) Discovery and admission into evidence of certain 
        reports, surveys, and information.--Notwithstanding any other 
        provision of law, reports, surveys, schedules, lists, or data 
        compiled or collected for any purpose relating to this section, 
        shall not be subject to discovery or admitted into evidence in a 
        Federal or State court proceeding or considered for other 
        purposes in any action for damages arising from any occurrence 
        at a location identified or addressed in the reports, surveys, 
        schedules, lists, or other data.

    ``(i) <<NOTE: Determination. Deadline.>> State Performance 
Targets.--If the Secretary determines that a State has not met or made 
significant progress toward meeting the performance targets of the State 
established under section 150(d) by the date that is 2 years after the 
date of the establishment of the performance targets, the State shall--
            ``(1) use obligation authority equal to the apportionment of 
        the State for the prior year under section 104(b)(3) only for 
        highway safety improvement projects under this section until the 
        Secretary determines that the State has met or made significant 
        progress toward meeting the performance targets of the State; 
        and
            ``(2) <<NOTE: Implementation plan.>> submit annually to the 
        Secretary, until the Secretary determines that the State has met 
        or made significant progress toward meeting the performance 
        targets of the State, an implementation plan that--
                    ``(A) identifies roadway features that constitute a 
                hazard to road users;
                    ``(B) identifies highway safety improvement projects 
                on the basis of crash experience, crash potential, or 
                other data-supported means;
                    ``(C) describes how highway safety improvement 
                program funds will be allocated, including projects, 
                activities, and strategies to be implemented;

[[Page 126 STAT. 459]]

                    ``(D) describes how the proposed projects, 
                activities, and strategies funded under the State 
                highway safety improvement program will allow the State 
                to make progress toward achieving the safety performance 
                targets of the State; and
                    ``(E) describes the actions the State will undertake 
                to meet the performance targets of the State.

    ``(j) Federal Share of Highway Safety Improvement Projects.--Except 
as provided in sections 120 and 130, the Federal share of the cost of a 
highway safety improvement project carried out with funds apportioned to 
a State under section 104(b)(3) shall be 90 percent.''.
    (b) <<NOTE: 23 USC 148 note.>> Study of High-risk Rural Roads Best 
Practices.--
            (1) Study.--
                    (A) In general.--The Secretary shall conduct a study 
                of the best practices for implementing cost-effective 
                roadway safety infrastructure improvements on high-risk 
                rural roads.
                    (B) Methodology.--In carrying out the study, the 
                Secretary shall--
                          (i) conduct a thorough literature review;
                          (ii) survey current practices of State 
                      departments of transportation; and
                          (iii) survey current practices of local units 
                      of government, as appropriate.
                    (C) Consultation.--In carrying out the study, the 
                Secretary shall consult with--
                          (i) State departments of transportation;
                          (ii) county engineers and public works 
                      professionals;
                          (iii) appropriate local officials; and
                          (iv) appropriate private sector experts in the 
                      field of roadway safety infrastructure.
            (2) Report.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall 
                submit to the Committee on Environment and Public Works 
                of the Senate and the Committee on Transportation and 
                Infrastructure of the House of Representatives a report 
                on the results of the study.
                    (B) Contents.--The report shall include--
                          (i) a summary of cost-effective roadway safety 
                      infrastructure improvements;
                          (ii) a summary of the latest research on the 
                      financial savings and reduction in fatalities and 
                      serious bodily injury crashes from the 
                      implementation of cost-effective roadway safety 
                      infrastructure improvements; and
                          (iii) recommendations for State and local 
                      governments on best practice methods to install 
                      cost-effective roadway safety infrastructure on 
                      high-risk rural roads.
            (3) Manual.--
                    (A) Development.--Based on the results of the study 
                under paragraph (2), the Secretary, in consultation with 
                the individuals and entities described in paragraph 
                (1)(C), shall develop a best practices manual to support 
                Federal, State, and local efforts to reduce fatalities 
                and serious

[[Page 126 STAT. 460]]

                bodily injury crashes on high-risk rural roads through 
                the use of cost-effective roadway safety infrastructure 
                improvements.
                    (B) <<NOTE: Deadline.>> Availability.--The manual 
                shall be made available to State and local governments 
                not later than 180 days after the date of submission of 
                the report under paragraph (2).
                    (C) Contents.--The manual shall include, at a 
                minimum, a list of cost-effective roadway safety 
                infrastructure improvements and best practices on the 
                installation of cost-effective roadway safety 
                infrastructure improvements on high-risk rural roads.
                    (D) Use of manual.--Use of the manual shall be 
                voluntary and the manual shall not establish any binding 
                standards or legal duties on State or local governments, 
                or any other person.
SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 
                          PROGRAM.

    (a) Eligible Projects.--Section 149(b) of title 23, United States 
Code, is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``in subsection (c)'' and inserting 
                ``in subsection (d)''; and
                    (B) by striking ``section 104(b)(2)'' and inserting 
                ``section 104(b)(4)'';
            (2) in paragraph (5)--
                    (A) by inserting ``add turning lanes,'' after 
                ``improve intersections,''; and
                    (B) by striking ``paragraph;'' and inserting 
                ``paragraph, including programs or projects to improve 
                incident and emergency response or improve mobility, 
                such as through real-time traffic, transit, and 
                multimodal traveler information;'';
            (3) in paragraph (6) by striking ``or'' at the end;
            (4) in paragraph (7)(A)(ii) by striking ``published in the 
        list under subsection (f)(2)'' and inserting ``verified 
        technologies (as defined in section 791 of the Energy Policy Act 
        of 2005 (42 U.S.C. 16131))'';
            (5) by striking the matter following paragraph (7);
            (6) by redesignating paragraph (7) as paragraph (8); and
            (7) by inserting after paragraph (6) the following:
            ``(7) if the project or program shifts traffic demand to 
        nonpeak hours or other transportation modes, increases vehicle 
        occupancy rates, or otherwise reduces demand for roads through 
        such means as telecommuting, ridesharing, carsharing, 
        alternative work hours, and pricing; or''.

    (b) Special Rules.--Section 149 of title 23, United States Code, is 
amended--
            (1) by redesignating subsections (c) through (h) as 
        subsections (d) through (i) respectively;
            (2) by inserting after subsection (b) the following:

    ``(c) Special Rules.--
            ``(1) Projects for pm-10 nonattainment areas.--A State may 
        obligate funds apportioned to the State under section 104(b)(4) 
        for a project or program for an area that is nonattainment for 
        ozone or carbon monoxide, or both, and for PM-

[[Page 126 STAT. 461]]

        10 resulting from transportation activities, without regard to 
        any limitation of the Department of Transportation relating to 
        the type of ambient air quality standard such project or program 
        addresses.
            ``(2) Electric vehicle and natural gas vehicle 
        infrastructure.--A State may obligate funds apportioned under 
        section 104(b)(4) for a project or program to establish electric 
        vehicle charging stations or natural gas vehicle refueling 
        stations for the use of battery powered or natural gas fueled 
        trucks or other motor vehicles at any location in the State 
        except that such stations may not be established or supported 
        where commercial establishments serving motor vehicle users are 
        prohibited by section 111 of title 23, United States Code.
            ``(3) HOV facilities.--No funds may be provided under this 
        section for a project which will result in the construction of 
        new capacity available to single occupant vehicles unless the 
        project consists of a high occupancy vehicle facility available 
        to single occupant vehicles only at other than peak travel 
        times.'';
            (3) by striking subsection (d) (as redesignated by paragraph 
        (1)) and inserting the following:

    ``(d) States Flexibility.--
            ``(1) States without a nonattainment area.--If a State does 
        not have, and never has had, a nonattainment area designated 
        under the Clean Air Act (42 U.S.C. 7401 et seq.), the State may 
        use funds apportioned to the State under section 104(b)(4) for 
        any project in the State that--
                    ``(A) would otherwise be eligible under subsection 
                (b) as if the project were carried out in a 
                nonattainment or maintenance area; or
                    ``(B) is eligible under the surface transportation 
                program under section 133.
            ``(2) States with a nonattainment area.--
                    ``(A) In general.--If a State has a nonattainment 
                area or maintenance area and received funds in fiscal 
                year 2009 under section 104(b)(2)(D), as in effect on 
                the day before the date of enactment of the MAP-21, 
                above the amount of funds that the State would have 
                received based on the nonattainment and maintenance area 
                population of the State under subparagraphs (B) and (C) 
                of section 104(b)(2), as in effect on the day before the 
                date of enactment of the MAP-21, the State may use for 
                any project that is eligible under the surface 
                transportation program under section 133 an amount of 
                funds apportioned to such State under section 104(b)(4) 
                that is equal to the product obtained by multiplying--
                          ``(i) the amount apportioned to such State 
                      under section 104(b)(4) (excluding the amount of 
                      funds reserved under paragraph (l)); by
                          ``(ii) the ratio calculated under subparagraph 
                      (B).
                    ``(B) Ratio.--For purposes of this paragraph, the 
                ratio shall be calculated as the proportion that--
                          ``(i) the amount for fiscal year 2009 such 
                      State was permitted by section 149(c)(2), as in 
                      effect on the day before the date of enactment of 
                      the MAP-21, to obligate in any area of the State 
                      for projects eligible

[[Page 126 STAT. 462]]

                      under section 133, as in effect on the day before 
                      the date of enactment of the MAP-21t; bears to
                          ``(ii) the total apportionment to such State 
                      for fiscal year 2009 under section 104(b)(2), as 
                      in effect on the day before the date of enactment 
                      of the MAP-21.
            ``(3) Changes in designation.--If a new nonattainment area 
        is designated or a previously designated nonattainment area is 
        redesignated as an attainment area in a State under the Clean 
        Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify the 
        amount such State is permitted to obligate in any area of the 
        State for projects eligible under section 133.'';
            (4) in subsection (f)(3) (as redesignated by paragraph (1)) 
        by striking ``104(b)(2)'' and inserting ``104(b)(4)'';
            (5) in subsection (g) (as redesignated by paragraph (1)) by 
        striking paragraph (3) and inserting the following:
            ``(3) Priority consideration.--States and metropolitan 
        planning organizations shall give priority in areas designated 
        as nonattainment or maintenance for PM2.5 under the Clean Air 
        Act (42 U.S.C. 7401 et seq.) in distributing funds received for 
        congestion mitigation and air quality projects and programs from 
        apportionments under section 104(b)(4) to projects that are 
        proven to reduce PM2.5, including diesel retrofits.'';
            (6) by striking subsection (i) (as redesignated by paragraph 
        (1)) and inserting the following:

    ``(i) Evaluation and Assessment of Projects.--
            ``(1) Database.--
                    ``(A) In general.--Using appropriate assessments of 
                projects funded under the congestion mitigation and air 
                quality program and results from other research, the 
                Secretary shall maintain and disseminate a cumulative 
                database describing the impacts of the projects, 
                including specific information about each project, such 
                as the project name, location, sponsor, cost, and, to 
                the extent already measured by the project sponsor, 
                cost-effectiveness, based on reductions in congestion 
                and emissions.
                    ``(B) <<NOTE: Publication. Public 
                information.>> Availability.--The database shall be 
                published or otherwise made readily available by the 
                Secretary in electronically accessible format and means, 
                such as the Internet, for public review.
            ``(2) Cost effectiveness.--
                    ``(A) <<NOTE: Evaluation.>> In general.--The 
                Secretary, in consultation with the Administrator of the 
                Environmental Protection Agency, shall evaluate projects 
                on a periodic basis and develop a table or other similar 
                medium that illustrates the cost-effectiveness of a 
                range of project types eligible for funding under this 
                section as to how the projects mitigate congestion and 
                improve air quality.
                    ``(B) Contents.--The table described in subparagraph 
                (A) shall show measures of cost-effectiveness, such as 
                dollars per ton of emissions reduced, and assess those 
                measures over a variety of timeframes to capture impacts 
                on the planning timeframes outlined in section 134.
                    ``(C) Use of table.--States and metropolitan 
                planning organizations shall consider the information in 
                the table when selecting projects or developing 
                performance plans under subsection (l).

    ``(j) Optional Programmatic Eligibility.--

[[Page 126 STAT. 463]]

            ``(1) In general.--At the discretion of a metropolitan 
        planning organization, a technical assessment of a selected 
        program of projects may be conducted through modeling or other 
        means to demonstrate the emissions reduction projection required 
        under this section.
            ``(2) Applicability.--If an assessment described in 
        paragraph (1) successfully demonstrates an emissions reduction, 
        all projects included in such assessment shall be eligible for 
        obligation under this section without further demonstration of 
        emissions reduction of individual projects included in such 
        assessment.

    ``(k) Priority for Use of Funds in PM2.5 Areas.--
            ``(1) In general.--For any State that has a nonattainment or 
        maintenance area for fine particulate matter, an amount equal to 
        25 percent of the funds apportioned to each State under section 
        104(b)(4) for a nonattainment or maintenance area that are based 
        all or in part on the weighted population of such area in fine 
        particulate matter nonattainment shall be obligated to projects 
        that reduce such fine particulate matter emissions in such area, 
        including diesel retrofits.
            ``(2) Construction equipment and vehicles.--In order to meet 
        the requirements of paragraph (1), a State or metropolitan 
        planning organization may elect to obligate funds to install 
        diesel emission control technology on nonroad diesel equipment 
        or on-road diesel equipment that is operated on a highway 
        construction project within a PM2.5 nonattainment or maintenance 
        area.

    ``(l) Performance Plan.--
            ``(1) In general.--Each metropolitan planning organization 
        serving a transportation management area (as defined in section 
        134) with a population over 1,000,000 people representing a 
        nonattainment or maintenance area shall develop a performance 
        plan that--
                    ``(A) includes an area baseline level for traffic 
                congestion and on-road mobile source emissions for which 
                the area is in nonattainment or maintenance;
                    ``(B) describes progress made in achieving the 
                performance targets described in section 150(d); and
                    ``(C) includes a description of projects identified 
                for funding under this section and how such projects 
                will contribute to achieving emission and traffic 
                congestion reduction targets.
            ``(2) <<NOTE: Deadline. Reports.>> Updated plans.--
        Performance plans shall be updated biennially and include a 
        separate report that assesses the progress of the program of 
        projects under the previous plan in achieving the air quality 
        and traffic congestion targets of the previous plan.

    ``(m) Operating Assistance.--A State may obligate funds apportioned 
under section 104(b)(2) in an area of such State that is otherwise 
eligible for obligations of such funds for operating costs under chapter 
53 of title 49 or on a system that was previously eligible under this 
section.''.
    (c) Air Quality and Congestion Mitigation Measure Outcomes 
Assessment Study.--
            (1) In general.--The Secretary, in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        examine the outcomes of actions funded under the congestion

[[Page 126 STAT. 464]]

        mitigation and air quality improvement program since the date of 
        enactment of the SAFETEA-LU (Public Law 109-59).
            (2) Goals.--The goals of the program shall include--
                    (A) the assessment and documentation, through 
                outcomes research conducted on a representative sample 
                of cases, of--
                          (i) the emission reductions achieved by 
                      federally supported surface transportation actions 
                      intended to reduce emissions or lessen traffic 
                      congestion; and
                          (ii) the air quality and human health impacts 
                      of those actions, including potential unrecognized 
                      or indirect consequences, attributable to those 
                      actions;
                    (B) an expanded base of empirical evidence on the 
                air quality and human health impacts of actions 
                described in paragraph (1); and
                    (C) an increase in knowledge of--
                          (i) the factors determining the air quality 
                      and human health changes associated with 
                      transportation emission reduction actions; and
                          (ii) other information to more accurately 
                      understand the validity of current estimation and 
                      modeling routines and ways to improve those 
                      routines.
            (3) Administrative elements.--To carry out this subsection, 
        the Secretary shall--
                    (A) <<NOTE: Grants.>> make a grant for the 
                coordination, selection, management, and reporting of 
                component studies to an independent scientific research 
                organization with the necessary experience in 
                successfully conducting accountability and other studies 
                on mobile source air pollutants and associated health 
                effects;
                    (B) ensure that case studies are identified and 
                conducted by teams selected through a competitive 
                solicitation overseen by an independent committee of 
                unbiased experts; and
                    (C) ensure that all findings and reports are peer-
                reviewed and published in a form that presents the 
                findings together with reviewer comments.
            (4) Report.--The Secretary shall submit to the Committee on 
        Environment and Public Works of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives--
                    (A) not later than 1 year after the date of 
                enactment of the MAP-21, and for the following year, a 
                report providing an initial scoping and plan, and status 
                updates, respectively, for the program under this 
                subsection; and
                    (B) not later than 2 years after the date of 
                enactment of the MAP-21, a final report that describes 
                the findings of, and recommendations resulting from, the 
                program under this subsection.
            (5) Funding.--Of the amounts made available to carry out 
        section 104(a) for fiscal year 2013, the Secretary shall make 
        available to carry out this subsection not more than $1,000,000.
SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.

    (a) In General.--Section 165 of title 23, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 465]]

``Sec. 165. Territorial and Puerto Rico highway program

    ``(a) Division of Funds.--Of funds made available in a fiscal year 
for the territorial and Puerto Rico highway program--
            ``(1) $150,000,000 shall be for the Puerto Rico highway 
        program under subsection (b); and
            ``(2) $40,000,000 shall be for the territorial highway 
        program under subsection (c).

    ``(b) Puerto Rico Highway Program.--
            ``(1) In general.--The Secretary shall allocate funds made 
        available to carry out this subsection to the Commonwealth of 
        Puerto Rico to carry out a highway program in the Commonwealth.
            ``(2) Treatment of funds.--Amounts made available to carry 
        out this subsection for a fiscal year shall be administered as 
        follows:
                    ``(A) Apportionment.--
                          ``(i) In general.--For the purpose of imposing 
                      any penalty under this title or title 49, the 
                      amounts shall be treated as being apportioned to 
                      Puerto Rico under sections 104(b) and 144 (as in 
                      effect for fiscal year 1997) for each program 
                      funded under those sections in an amount 
                      determined by multiplying--
                                    ``(I) the aggregate of the amounts 
                                for the fiscal year; by
                                    ``(II) the proportion that--
                                            ``(aa) the amount of funds 
                                        apportioned to Puerto Rico for 
                                        each such program for fiscal 
                                        year 1997; bears to
                                            ``(bb) the total amount of 
                                        funds apportioned to Puerto Rico 
                                        for all such programs for fiscal 
                                        year 1997.
                          ``(ii) Exception.--Funds identified under 
                      clause (i) as having been apportioned for the 
                      national highway system, the surface 
                      transportation program, and the Interstate 
                      maintenance program shall be deemed to have been 
                      apportioned 50 percent for the national highway 
                      performance program and 50 percent for the surface 
                      transportation program for purposes of imposing 
                      such penalties.
                    ``(B) Penalty.--The amounts treated as being 
                apportioned to Puerto Rico under each section referred 
                to in subparagraph (A) shall be deemed to be required to 
                be apportioned to Puerto Rico under that section for 
                purposes of the imposition of any penalty under this 
                title or title 49.
                    ``(C) Eligible uses of funds.--Of amounts allocated 
                to Puerto Rico for the Puerto Rico Highway Program for a 
                fiscal year--
                          ``(i) at least 50 percent shall be available 
                      only for purposes eligible under section 119;
                          ``(ii) at least 25 percent shall be available 
                      only for purposes eligible under section 148; and
                          ``(iii) any remaining funds may be obligated 
                      for activities eligible under chapter 1.
            ``(3) Effect on apportionments.--Except as otherwise 
        specifically provided, Puerto Rico shall not be eligible to 
        receive funds apportioned to States under this title.

[[Page 126 STAT. 466]]

    ``(c) Territorial Highway Program.--
            ``(1) Territory defined.--In this subsection, the term 
        `territory' means any of the following territories of the United 
        States:
                    ``(A) American Samoa.
                    ``(B) The Commonwealth of the Northern Mariana 
                Islands.
                    ``(C) Guam.
                    ``(D) The United States Virgin Islands.
            ``(2) Program.--
                    ``(A) In general.--Recognizing the mutual benefits 
                that will accrue to the territories and the United 
                States from the improvement of highways in the 
                territories, the Secretary may carry out a program to 
                assist each government of a territory in the 
                construction and improvement of a system of arterial and 
                collector highways, and necessary inter-island 
                connectors, that is--
                          ``(i) designated by the Governor or chief 
                      executive officer of each territory; and
                          ``(ii) approved by the Secretary.
                    ``(B) Federal share.--The Federal share of Federal 
                financial assistance provided to territories under this 
                subsection shall be in accordance with section 120(g).
            ``(3) Technical assistance.--
                    ``(A) In general.--To continue a long-range highway 
                development program, the Secretary may provide technical 
                assistance to the governments of the territories to 
                enable the territories, on a continuing basis--
                          ``(i) to engage in highway planning;
                          ``(ii) to conduct environmental evaluations;
                          ``(iii) to administer right-of-way acquisition 
                      and relocation assistance programs; and
                          ``(iv) to design, construct, operate, and 
                      maintain a system of arterial and collector 
                      highways, including necessary inter-island 
                      connectors.
                    ``(B) Form and terms of assistance.--Technical 
                assistance provided under subparagraph (A), and the 
                terms for the sharing of information among territories 
                receiving the technical assistance, shall be included in 
                the agreement required by paragraph (5).
            ``(4) Nonapplicability of certain provisions.--
                    ``(A) In general.--Except to the extent that 
                provisions of this chapter are determined by the 
                Secretary to be inconsistent with the needs of the 
                territories and the intent of this subsection, this 
                chapter (other than provisions of this chapter relating 
                to the apportionment and allocation of funds) shall 
                apply to funds made available under this subsection.
                    ``(B) Applicable provisions.--The agreement required 
                by paragraph (5) for each territory shall identify the 
                sections of this chapter that are applicable to that 
                territory and the extent of the applicability of those 
                sections.
            ``(5) Agreement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (D), none of the funds made available under 
                this subsection shall be available for obligation or 
                expenditure with respect to any territory until the 
                chief executive officer of the

[[Page 126 STAT. 467]]

                territory has entered into an agreement (including an 
                agreement entered into under section 215 as in effect on 
                the day before the enactment of this section) with the 
                Secretary providing that the government of the territory 
                shall--
                          ``(i) implement the program in accordance with 
                      applicable provisions of this chapter and 
                      paragraph (4);
                          ``(ii) design and construct a system of 
                      arterial and collector highways, including 
                      necessary inter-island connectors, in accordance 
                      with standards that are--
                                    ``(I) appropriate for each 
                                territory; and
                                    ``(II) approved by the Secretary;
                          ``(iii) provide for the maintenance of 
                      facilities constructed or operated under this 
                      subsection in a condition to adequately serve the 
                      needs of present and future traffic; and
                          ``(iv) implement standards for traffic 
                      operations and uniform traffic control devices 
                      that are approved by the Secretary.
                    ``(B) Technical assistance.--The agreement required 
                by subparagraph (A) shall--
                          ``(i) specify the kind of technical assistance 
                      to be provided under the program;
                          ``(ii) include appropriate provisions 
                      regarding information sharing among the 
                      territories; and
                          ``(iii) delineate the oversight role and 
                      responsibilities of the territories and the 
                      Secretary.
                    ``(C) <<NOTE: Deadline.>> Review and revision of 
                agreement.--The agreement entered into under 
                subparagraph (A) shall be reevaluated and, as necessary, 
                revised, at least every 2 years.
                    ``(D) Existing agreements.--With respect to an 
                agreement under this subsection or an agreement entered 
                into under section 215 of this title as in effect on the 
                day before the date of enactment of this subsection--
                          ``(i) the agreement shall continue in force 
                      until replaced by an agreement entered into in 
                      accordance with subparagraph (A); and
                          ``(ii) amounts made available under this 
                      subsection under the existing agreement shall be 
                      available for obligation or expenditure so long as 
                      the agreement, or the existing agreement entered 
                      into under subparagraph (A), is in effect.
            ``(6) Eligible uses of funds.--
                    ``(A) In general.--Funds made available under this 
                subsection may be used only for the following projects 
                and activities carried out in a territory:
                          ``(i) Eligible surface transportation program 
                      projects described in section 133(b).
                          ``(ii) Cost-effective, preventive maintenance 
                      consistent with section 116(e).
                          ``(iii) Ferry boats, terminal facilities, and 
                      approaches, in accordance with subsections (b) and 
                      (c) of section 129.

[[Page 126 STAT. 468]]

                          ``(iv) Engineering and economic surveys and 
                      investigations for the planning, and the 
                      financing, of future highway programs.
                          ``(v) Studies of the economy, safety, and 
                      convenience of highway use.
                          ``(vi) The regulation and equitable taxation 
                      of highway use.
                          ``(vii) Such research and development as are 
                      necessary in connection with the planning, design, 
                      and maintenance of the highway system.
                    ``(B) Prohibition on use of funds for routine 
                maintenance.--None of the funds made available under 
                this subsection shall be obligated or expended for 
                routine maintenance.
            ``(7) Location of projects.--Territorial highway program 
        projects (other than those described in paragraphs (2), (4), 
        (7), (8), (14), and (19) of section 133(b)) may not be 
        undertaken on roads functionally classified as local.''.

    (b) Conforming Amendments.--
            (1) Technical and conforming amendment.--The analysis for 
        chapter 1 of title 23, United States Code, is amended by 
        striking the item relating to section 165 and inserting the 
        following:

``165. Territorial and Puerto Rico highway program.''.

            (2) Territorial highway program.--
                    (A) Repeal.--Section 215 of title 23, United States 
                Code, is repealed.
                    (B) Technical and conforming amendment.--The 
                analysis for chapter 2 of title 23, United States Code, 
                is amended by striking the item relating to section 215.
                    (C) Duncan hunter national defense authorization act 
                for fiscal year 2009.--Section 3512(e) of the Duncan 
                Hunter National Defense Authorization Act for Fiscal 
                Year 2009 (48 U.S.C. 1421r(e)) is amended by striking 
                ``section 215'' and inserting ``section 165''.
SEC. 1115. NATIONAL FREIGHT POLICY.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:
``Sec. 167. National freight policy

    ``(a) In General.--It is the policy of the United States to improve 
the condition and performance of the national freight network to ensure 
that the national freight network provides the foundation for the United 
States to compete in the global economy and achieve each goal described 
in subsection (b).
    ``(b) Goals.--The goals of the national freight policy are--
            ``(1) to invest in infrastructure improvements and to 
        implement operational improvements that--
                    ``(A) strengthen the contribution of the national 
                freight network to the economic competitiveness of the 
                United States;
                    ``(B) reduce congestion; and
                    ``(C) increase productivity, particularly for 
                domestic industries and businesses that create high-
                value jobs;

[[Page 126 STAT. 469]]

            ``(2) to improve the safety, security, and resilience of 
        freight transportation;
            ``(3) to improve the state of good repair of the national 
        freight network;
            ``(4) to use advanced technology to improve the safety and 
        efficiency of the national freight network;
            ``(5) to incorporate concepts of performance, innovation, 
        competition, and accountability into the operation and 
        maintenance of the national freight network; and
            ``(6) to improve the economic efficiency of the national 
        freight network.
            ``(7) to reduce the environmental impacts of freight 
        movement on the national freight network;

    ``(c) Establishment of a National Freight Network.--
            ``(1) In general.--The Secretary shall establish a national 
        freight network in accordance with this section to assist States 
        in strategically directing resources toward improved system 
        performance for efficient movement of freight on highways, 
        including national highway system, freight intermodal connectors 
        and aerotropolis transportation systems.
            ``(2) Network components.--The national freight network 
        shall consist of--
                    ``(A) the primary freight network, as designated by 
                the Secretary under subsection (d) (referred to in this 
                section as the `primary freight network') as most 
                critical to the movement of freight;
                    ``(B) the portions of the Interstate System not 
                designated as part of the primary freight network; and
                    ``(C) critical rural freight corridors established 
                under subsection (e).

    ``(d) Designation of Primary Freight Network.--
            ``(1) Initial designation of primary freight network.--
                    ``(A) <<NOTE: Deadline.>> Designation.--Not later 
                than 1 year after the date of enactment of this section, 
                the Secretary shall designate a primary freight 
                network--
                          ``(i) based on an inventory of national 
                      freight volume conducted by the Administrator of 
                      the Federal Highway Administration, in 
                      consultation with stakeholders, including system 
                      users, transport providers, and States; and
                          ``(ii) that shall be comprised of not more 
                      than 27,000 centerline miles of existing roadways 
                      that are most critical to the movement of freight.
                    ``(B) Factors for designation.--In designating the 
                primary freight network, the Secretary shall consider--
                          ``(i) the origins and destinations of freight 
                      movement in the United States;
                          ``(ii) the total freight tonnage and value of 
                      freight moved by highways;
                          ``(iii) the percentage of annual average daily 
                      truck traffic in the annual average daily traffic 
                      on principal arterials;
                          ``(iv) the annual average daily truck traffic 
                      on principal arterials;
                          ``(v) land and maritime ports of entry;
                          ``(vi) access to energy exploration, 
                      development, installation, or production areas;

[[Page 126 STAT. 470]]

                          ``(vii) population centers; and
                          ``(viii) network connectivity.
            ``(2) Additional miles on primary freight network.--In 
        addition to the miles initially designated under paragraph (1), 
        the Secretary may increase the number of miles designated as 
        part of the primary freight network by not more than 3,000 
        additional centerline miles of roadways (which may include 
        existing or planned roads) critical to future efficient movement 
        of goods on the primary freight network.
            ``(3) <<NOTE: Effective date. Deadline.>> Redesignation of 
        primary freight network.--Effective beginning 10 years after the 
        designation of the primary freight network and every 10 years 
        thereafter, using the designation factors described in paragraph 
        (1), the Secretary shall redesignate the primary freight network 
        (including additional mileage described in paragraph (2)).

    ``(e) Critical Rural Freight Corridors.--A State may designate a 
road within the borders of the State as a critical rural freight 
corridor if the road--
            ``(1) is a rural principal arterial roadway and has a 
        minimum of 25 percent of the annual average daily traffic of the 
        road measured in passenger vehicle equivalent units from trucks 
        (FHWA vehicle class 8 to 13);
            ``(2) provides access to energy exploration, development, 
        installation, or production areas;
            ``(3) connects the primary freight network, a roadway 
        described in paragraph (1) or (2), or Interstate System to 
        facilities that handle more than--
                    ``(A) 50,000 20-foot equivalent units per year; or
                    ``(B) 500,000 tons per year of bulk commodities.

    ``(f) National Freight Strategic Plan.--
            ``(1) Initial development of national freight strategic 
        plan.-- <<NOTE: Deadline.>> Not later than 3 years after the 
        date of enactment of this section, the Secretary shall, in 
        consultation with State departments of transportation and other 
        appropriate public and private transportation stakeholders, 
        develop and post on the Department of Transportation public 
        website a national freight strategic plan that shall include--
                    ``(A) an assessment of the condition and performance 
                of the national freight network;
                    ``(B) an identification of highway bottlenecks on 
                the national freight network that create significant 
                freight congestion problems, based on a quantitative 
                methodology developed by the Secretary, which shall, at 
                a minimum, include--
                          ``(i) information from the Freight Analysis 
                      Network of the Federal Highway Administration; and
                          ``(ii) to the maximum extent practicable, an 
                      estimate of the cost of addressing each bottleneck 
                      and any operational improvements that could be 
                      implemented;
                    ``(C) forecasts of freight volumes for the 20-year 
                period beginning in the year during which the plan is 
                issued;
                    ``(D) an identification of major trade gateways and 
                national freight corridors that connect major population 
                centers, trade gateways, and other major freight 
                generators for current and forecasted traffic and 
                freight volumes, the

[[Page 126 STAT. 471]]

                identification of which shall be revised, as 
                appropriate, in subsequent plans;
                    ``(E) an assessment of statutory, regulatory, 
                technological, institutional, financial, and other 
                barriers to improved freight transportation performance 
                (including opportunities for overcoming the barriers);
                    ``(F) an identification of routes providing access 
                to energy exploration, development, installation, or 
                production areas;
                    ``(G) best practices for improving the performance 
                of the national freight network;
                    ``(H) best practices to mitigate the impacts of 
                freight movement on communities;
                    ``(I) a process for addressing multistate projects 
                and encouraging jurisdictions to collaborate; and
                    ``(J) strategies to improve freight intermodal 
                connectivity.
            ``(2) Updates to national freight strategic plan.--Not later 
        than 5 years after the date of completion of the first national 
        freight strategic plan under paragraph (1), and every 5 years 
        thereafter, the Secretary shall update and repost on the 
        Department of Transportation public website a revised national 
        freight strategic plan.

    ``(g) <<NOTE: Web posting.>> Freight Transportation Conditions and 
Performance Reports.--Not later than 2 years after the date of enactment 
of this section, and biennially thereafter, the Secretary shall prepare 
a report that contains a description of the conditions and performance 
of the national freight network in the United States.

    ``(h) Transportation Investment Data and Planning Tools.--
            ``(1) <<NOTE: Deadline.>> In general.--Not later than 1 year 
        after the date of enactment of this section, the Secretary 
        shall--
                    ``(A) begin development of new tools and improvement 
                of existing tools or improve existing tools to support 
                an outcome-oriented, performance-based approach to 
                evaluate proposed freight-related and other 
                transportation projects, including--
                          ``(i) methodologies for systematic analysis of 
                      benefits and costs;
                          ``(ii) tools for ensuring that the evaluation 
                      of freight-related and other transportation 
                      projects could consider safety, economic 
                      competitiveness, environmental sustainability, and 
                      system condition in the project selection process; 
                      and
                          ``(iii) other elements to assist in effective 
                      transportation planning;
                    ``(B) identify transportation-related model data 
                elements to support a broad range of evaluation methods 
                and techniques to assist in making transportation 
                investment decisions; and
                    ``(C) at a minimum, in consultation with other 
                relevant Federal agencies, consider any improvements to 
                existing freight flow data collection efforts that could 
                reduce identified freight data gaps and deficiencies and 
                help improve forecasts of freight transportation demand.

[[Page 126 STAT. 472]]

            ``(2) Consultation.--The Secretary shall consult with 
        Federal, State, and other stakeholders to develop, improve, and 
        implement the tools and collect the data in paragraph (1).

    ``(i) Definition of Aerotropolis Transportation System.--In this 
section, the term `aerotropolis transportation system' means a planned 
and coordinated multimodal freight and passenger transportation network 
that, as determined by the Secretary, provides efficient, cost-
effective, sustainable, and intermodal connectivity to a defined region 
of economic significance centered around a major airport.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following:

``167. National freight program.''.

SEC. 1116. <<NOTE: 23 USC 167 note.>> PRIORITIZATION OF PROJECTS 
                          TO IMPROVE FREIGHT MOVEMENT.

    (a) <<NOTE: Certification.>> In General.--Notwithstanding section 
120 of title 23, United States Code, the Secretary may increase the 
Federal share payable for any project to 95 percent for projects on the 
Interstate System and 90 percent for any other project if the Secretary 
certifies that the project meets the requirements of this section.

    (b) Increased Funding.--To be eligible for the increased Federal 
funding share under this section, a project shall--
            (1) demonstrate the improvement made by the project to the 
        efficient movement of freight, including making progress towards 
        meeting performance targets for freight movement established 
        under section 150(d) of title 23, United States Code; and
            (2) be identified in a State freight plan developed pursuant 
        to section 1118.

    (c) Eligible Projects.--Eligible projects to improve the movement of 
freight under this section may include, but are not limited to--
            (1) construction, reconstruction, rehabilitation, and 
        operational improvements directly relating to improving freight 
        movement;
            (2) intelligent transportation systems and other technology 
        to improve the flow of freight;
            (3) efforts to reduce the environmental impacts of freight 
        movement on the primary freight network;
            (4) railway-highway grade separation;
            (5) geometric improvements to interchanges and ramps.
            (6) truck-only lanes;
            (7) climbing and runaway truck lanes;
            (8) truck parking facilities eligible for funding under 
        section 1401;
            (9) real-time traffic, truck parking, roadway condition, and 
        multimodal transportation information systems;
            (10) improvements to freight intermodal connectors; and
            (11) improvements to truck bottlenecks.
SEC. 1117. <<NOTE: 23 USC 167 note.>> STATE FREIGHT ADVISORY 
                          COMMITTEES.

    (a) In General.--The Secretary shall encourage each State to 
establish a freight advisory committee consisting of a representative 
cross-section of public and private sector freight stakeholders, 
including representatives of ports, shippers, carriers, freight-related

[[Page 126 STAT. 473]]

associations, the freight industry workforce, the transportation 
department of the State, and local governments.
    (b) Role of Committee.--A freight advisory committee of a State 
described in subsection (a) shall--
            (1) advise the State on freight-related priorities, issues, 
        projects, and funding needs;
            (2) serve as a forum for discussion for State transportation 
        decisions affecting freight mobility;
            (3) communicate and coordinate regional priorities with 
        other organizations;
            (4) promote the sharing of information between the private 
        and public sectors on freight issues; and
            (5) participate in the development of the freight plan of 
        the State described in section 1118.
SEC. 1118. <<NOTE: 23 USC 167 note.>> STATE FREIGHT PLANS.

    (a) In General.--The Secretary shall encourage each State to develop 
a freight plan that provides a comprehensive plan for the immediate and 
long-range planning activities and investments of the State with respect 
to freight.
    (b) Plan Contents.--A freight plan described in subsection (a) shall 
include, at a minimum--
            (1) an identification of significant freight system trends, 
        needs, and issues with respect to the State;
            (2) a description of the freight policies, strategies, and 
        performance measures that will guide the freight-related 
        transportation investment decisions of the State;
            (3) a description of how the plan will improve the ability 
        of the State to meet the national freight goals established 
        under section 167 of title 23, United States Code;
            (4) evidence of consideration of innovative technologies and 
        operational strategies, including intelligent transportation 
        systems, that improve the safety and efficiency of freight 
        movement;
            (5) in the case of routes on which travel by heavy vehicles 
        (including mining, agricultural, energy cargo or equipment, and 
        timber vehicles) is projected to substantially deteriorate the 
        condition of roadways, a description of improvements that may be 
        required to reduce or impede the deterioration; and
            (6) an inventory of facilities with freight mobility issues, 
        such as truck bottlenecks, within the State, and a description 
        of the strategies the State is employing to address those 
        freight mobility issues.

    (c) Relationship to Long-range Plan.--A freight plan described in 
subsection (a) may be developed separate from or incorporated into the 
statewide strategic long-range transportation plan required by section 
135 of title 23, United States Code.
SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.

    (a) In General.--Chapter 2 of title 23, United States Code, is 
amended by striking sections 201 through 204 and inserting the 
following:
``Sec. 201. Federal lands and tribal transportation programs

    ``(a) <<NOTE: Coordination.>> Purpose.--Recognizing the need for all 
public Federal and tribal transportation facilities to be treated under 
uniform policies similar to the policies that apply to Federal-aid 
highways and

[[Page 126 STAT. 474]]

other public transportation facilities, the Secretary of Transportation, 
in collaboration with the Secretaries of the appropriate Federal land 
management agencies, shall coordinate a uniform policy for all public 
Federal and tribal transportation facilities that shall apply to Federal 
lands transportation facilities, tribal transportation facilities, and 
Federal lands access transportation facilities.

    ``(b) Availability of Funds.--
            ``(1) Availability.--Funds authorized for the tribal 
        transportation program, the Federal lands transportation 
        program, and the Federal lands access program shall be available 
        for contract upon apportionment, or on October 1 of the fiscal 
        year for which the funds were authorized if no apportionment is 
        required.
            ``(2) Amount remaining.--Any amount remaining unexpended for 
        a period of 3 years after the close of the fiscal year for which 
        the funds were authorized shall lapse.
            ``(3) Obligations.--The Secretary of the department 
        responsible for the administration of funds under this 
        subsection may incur obligations, approve projects, and enter 
        into contracts under such authorizations, which shall be 
        considered to be contractual obligations of the United States 
        for the payment of the cost thereof, the funds of which shall be 
        considered to have been expended when obligated.
            ``(4) Expenditure.--
                    ``(A) In general.--Any funds authorized for any 
                fiscal year after the date of enactment of this section 
                under the Federal lands transportation program, the 
                Federal lands access program, and the tribal 
                transportation program shall be considered to have been 
                expended if a sum equal to the total of the sums 
                authorized for the fiscal year and previous fiscal years 
                have been obligated.
                    ``(B) Credited funds.--Any funds described in 
                subparagraph (A) that are released by payment of final 
                voucher or modification of project authorizations shall 
                be--
                          ``(i) credited to the balance of unobligated 
                      authorizations; and
                          ``(ii) immediately available for expenditure.
            ``(5) Applicability.--This section shall not apply to funds 
        authorized before the date of enactment of this paragraph.
            ``(6) Contractual obligation.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law (including regulations), the 
                authorization by the Secretary, or the Secretary of the 
                appropriate Federal land management agency if the agency 
                is the contracting office, of engineering and related 
                work for the development, design, and acquisition 
                associated with a construction project, whether 
                performed by contract or agreement authorized by law, or 
                the approval by the Secretary of plans, specifications, 
                and estimates for construction of a project, shall be 
                considered to constitute a contractual obligation of the 
                Federal Government to pay the total eligible cost of--
                          ``(i) any project funded under this title; and
                          ``(ii) any project funded pursuant to 
                      agreements authorized by this title or any other 
                      title.
                    ``(B) Effect.--Nothing in this paragraph--

[[Page 126 STAT. 475]]

                          ``(i) affects the application of the Federal 
                      share associated with the project being undertaken 
                      under this section; or
                          ``(ii) modifies the point of obligation 
                      associated with Federal salaries and expenses.
            ``(7) Federal share.--
                    ``(A) Tribal and federal lands transportation 
                program.--The Federal share of the cost of a project 
                carried out under the Federal lands transportation 
                program or the tribal transportation program shall be 
                100 percent.
                    ``(B) Federal lands access program.--The Federal 
                share of the cost of a project carried out under the 
                Federal lands access program shall be determined in 
                accordance with section 120.

    ``(c) Transportation Planning.--
            ``(1) Transportation planning procedures.--In consultation 
        with the Secretary of each appropriate Federal land management 
        agency, the Secretary shall implement transportation planning 
        procedures for Federal lands and tribal transportation 
        facilities that are consistent with the planning processes 
        required under sections 134 and 135.
            ``(2) Approval of transportation improvement program.--The 
        transportation improvement program developed as a part of the 
        transportation planning process under this section shall be 
        approved by the Secretary.
            ``(3) Inclusion in other plans.--Each regionally significant 
        tribal transportation program, Federal lands transportation 
        program, and Federal lands access program project shall be--
                    ``(A) developed in cooperation with State and 
                metropolitan planning organizations; and
                    ``(B) included in appropriate tribal transportation 
                program plans, Federal lands transportation program 
                plans, Federal lands access program plans, State and 
                metropolitan plans, and transportation improvement 
                programs.
            ``(4) Inclusion in state programs.--The approved tribal 
        transportation program, Federal lands transportation program, 
        and Federal lands access program transportation improvement 
        programs shall be included in appropriate State and metropolitan 
        planning organization plans and programs without further action 
        on the transportation improvement program.
            ``(5) Asset management.--The Secretary and the Secretary of 
        each appropriate Federal land management agency shall, to the 
        extent appropriate, implement safety, bridge, pavement, and 
        congestion management systems for facilities funded under the 
        tribal transportation program and the Federal lands 
        transportation program in support of asset management.
            ``(6) Data collection.--
                    ``(A) Data collection.--The Secretaries of the 
                appropriate Federal land management agencies shall 
                collect and report data necessary to implement the 
                Federal lands transportation program, the Federal lands 
                access program, and the tribal transportation program in 
                accordance with the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450 et seq.), 
                including--

[[Page 126 STAT. 476]]

                          ``(i) inventory and condition information on 
                      Federal lands transportation facilities and tribal 
                      transportation facilities; and
                          ``(ii) bridge inspection and inventory 
                      information on any Federal bridge open to the 
                      public.
                    ``(B) Standards.--The Secretary, in coordination 
                with the Secretaries of the appropriate Federal land 
                management agencies, shall define the collection and 
                reporting data standards.
            ``(7) Administrative expenses.--To implement the activities 
        described in this subsection, including direct support of 
        transportation planning activities among Federal land management 
        agencies, the Secretary may use not more than 5 percent for each 
        fiscal year of the funds authorized for programs under sections 
        203 and 204.

    ``(d) Reimbursable Agreements.--In carrying out work under 
reimbursable agreements with any State, local, or tribal government 
under this title, the Secretary--
            ``(1) may, without regard to any other provision of law 
        (including regulations), record obligations against accounts 
        receivable from the entity; and
            ``(2) shall credit amounts received from the entity to the 
        appropriate account, which shall occur not later than 90 days 
        after the date of the original request by the Secretary for 
        payment.

    ``(e) Transfers.--
            ``(1) In general.--To enable the efficient use of funds made 
        available for the Federal lands transportation program and the 
        Federal lands access program, the funds may be transferred by 
        the Secretary within and between each program with the 
        concurrence of, as appropriate--
                    ``(A) the Secretary;
                    ``(B) the affected Secretaries of the respective 
                Federal land management agencies;
                    ``(C) State departments of transportation; and
                    ``(D) local government agencies.
            ``(2) Credit.--The funds described in paragraph (1) shall be 
        credited back to the loaning entity with funds that are 
        currently available for obligation at the time of the credit.
``Sec. 202. Tribal transportation program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the tribal 
        transportation program shall be used by the Secretary of 
        Transportation and the Secretary of the Interior to pay the 
        costs of--
                    ``(A)(i) transportation planning, research, 
                maintenance, engineering, rehabilitation, restoration, 
                construction, and reconstruction of tribal 
                transportation facilities;
                    ``(ii) adjacent vehicular parking areas;
                    ``(iii) interpretive signage;
                    ``(iv) acquisition of necessary scenic easements and 
                scenic or historic sites;
                    ``(v) provisions for pedestrians and bicycles;
                    ``(vi) environmental mitigation in or adjacent to 
                tribal land--

[[Page 126 STAT. 477]]

                          ``(I) to improve public safety and reduce 
                      vehicle-caused wildlife mortality while 
                      maintaining habitat connectivity; and
                          ``(II) to mitigate the damage to wildlife, 
                      aquatic organism passage, habitat, and ecosystem 
                      connectivity, including the costs of constructing, 
                      maintaining, replacing, or removing culverts and 
                      bridges, as appropriate;
                    ``(vii) construction and reconstruction of roadside 
                rest areas, including sanitary and water facilities; and
                    ``(viii) other appropriate public road facilities as 
                determined by the Secretary;
                    ``(B) operation and maintenance of transit programs 
                and facilities that are located on, or provide access 
                to, tribal land, or are administered by a tribal 
                government; and
                    ``(C) any transportation project eligible for 
                assistance under this title that is located within, or 
                that provides access to, tribal land, or is associated 
                with a tribal government.
            ``(2) Contract.--In connection with an activity described in 
        paragraph (1), the Secretary and the Secretary of the Interior 
        may enter into a contract or other appropriate agreement with 
        respect to the activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.
            ``(3) Indian labor.--Indian labor may be employed, in 
        accordance with such rules and regulations as may be promulgated 
        by the Secretary of the Interior, to carry out any construction 
        or other activity described in paragraph (1).
            ``(4) Federal employment.--No maximum limitation on Federal 
        employment shall be applicable to the construction or 
        improvement of tribal transportation facilities.
            ``(5) Funds for construction and improvement.--All funds 
        made available for the construction and improvement of tribal 
        transportation facilities shall be administered in conformity 
        with regulations and agreements jointly approved by the 
        Secretary and the Secretary of the Interior.
            ``(6) Administrative expenses.--Of the funds authorized to 
        be appropriated for the tribal transportation program, not more 
        than 6 percent may be used by the Secretary or the Secretary of 
        the Interior for program management and oversight and project-
        related administrative expenses.
            ``(7) Tribal technical assistance centers.--The Secretary of 
        the Interior may reserve amounts from administrative funds of 
        the Bureau of Indian Affairs that are associated with the tribal 
        transportation program to fund tribal technical assistance 
        centers under section 504(b).
            ``(8) Maintenance.--
                    ``(A) Use of funds.--Notwithstanding any other 
                provision of this title, of the amount of funds 
                allocated to an Indian tribe from the tribal 
                transportation program, for the purpose of maintenance 
                (excluding road sealing, which shall not be subject to 
                any limitation), the Secretary shall not use an amount 
                more than the greater of--
                          ``(i) an amount equal to 25 percent; or

[[Page 126 STAT. 478]]

                          ``(ii) $500,000.
                    ``(B) Responsibility of bureau of indian affairs and 
                secretary of the interior.--
                          ``(i) Bureau of indian affairs.--The Bureau of 
                      Indian Affairs shall retain primary 
                      responsibility, including annual funding request 
                      responsibility, for Bureau of Indian Affairs road 
                      maintenance programs on Indian reservations.
                          ``(ii) Secretary of the interior.--The 
                      Secretary of the Interior shall ensure that 
                      funding made available under this subsection for 
                      maintenance of tribal transportation facilities 
                      for each fiscal year is supplementary to, and not 
                      in lieu of, any obligation of funds by the Bureau 
                      of Indian Affairs for road maintenance programs on 
                      Indian reservations.
                    ``(C) Tribal-state road maintenance agreements.--
                          ``(i) In general.--An Indian tribe and a State 
                      may enter into a road maintenance agreement under 
                      which an Indian tribe shall assume the 
                      responsibility of the State for--
                                    ``(I) tribal transportation 
                                facilities; and
                                    ``(II) roads providing access to 
                                tribal transportation facilities.
                          ``(ii) Requirements.--Agreements entered into 
                      under clause (i) shall--
                                    ``(I) be negotiated between the 
                                State and the Indian tribe; and
                                    ``(II) not require the approval of 
                                the Secretary.
            ``(9) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision shall be credited to 
                appropriations available for the tribal transportation 
                program.
            ``(10) Competitive bidding.--
                    ``(A) Construction.--
                          ``(i) In general.--Subject to clause (ii) and 
                      subparagraph (B), construction of each project 
                      shall be performed by contract awarded by 
                      competitive bidding.
                          ``(ii) Exception.--Clause (i) shall not apply 
                      if the Secretary or the Secretary of the Interior 
                      affirmatively finds that, under the circumstances 
                      relating to the project, a different method is in 
                      the public interest.
                    ``(B) Applicability.--Notwithstanding subparagraph 
                (A), section 23 of the Act of June 25, 1910 (25 U.S.C. 
                47) and section 7(b) of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450e(b)) shall 
                apply to all funds administered by the Secretary of the 
                Interior that are appropriated for the construction and 
                improvement of tribal transportation facilities.

    ``(b) Funds Distribution.--
            ``(1) National tribal transportation facility inventory.--

[[Page 126 STAT. 479]]

                    ``(A) In general.--The Secretary of the Interior, in 
                cooperation with the Secretary, shall maintain a 
                comprehensive national inventory of tribal 
                transportation facilities that are eligible for 
                assistance under the tribal transportation program.
                    ``(B) Transportation facilities included in the 
                inventory.--For purposes of identifying the tribal 
                transportation system and determining the relative 
                transportation needs among Indian tribes, the Secretary 
                shall include, at a minimum, transportation facilities 
                that are eligible for assistance under the tribal 
                transportation program that an Indian tribe has 
                requested, including facilities that--
                          ``(i) were included in the Bureau of Indian 
                      Affairs system inventory prior to October 1, 2004;
                          ``(ii) are owned by an Indian tribal 
                      government;
                          ``(iii) are owned by the Bureau of Indian 
                      Affairs;
                          ``(iv) were constructed or reconstructed with 
                      funds from the Highway Trust Fund under the Indian 
                      reservation roads program since 1983;
                          ``(v) are public roads or bridges within the 
                      exterior boundary of Indian reservations, Alaska 
                      Native villages, and other recognized Indian 
                      communities (including communities in former 
                      Indian reservations in the State of Oklahoma) in 
                      which the majority of residents are American 
                      Indians or Alaska Natives;
                          ``(vi) are public roads within or providing 
                      access to an Indian reservation or Indian trust 
                      land or restricted Indian land that is not subject 
                      to fee title alienation without the approval of 
                      the Federal Government, or Indian or Alaska Native 
                      villages, groups, or communities in which Indians 
                      and Alaska Natives reside, whom the Secretary of 
                      the Interior has determined are eligible for 
                      services generally available to Indians under 
                      Federal laws specifically applicable to Indians; 
                      or
                          ``(vii) are primary access routes proposed by 
                      tribal governments, including roads between 
                      villages, roads to landfills, roads to drinking 
                      water sources, roads to natural resources 
                      identified for economic development, and roads 
                      that provide access to intermodal terminals, such 
                      as airports, harbors, or boat landings.
                    ``(C) Limitation on primary access routes.--For 
                purposes of this paragraph, a proposed primary access 
                route is the shortest practicable route connecting 2 
                points of the proposed route.
                    ``(D) Additional facilities.--Nothing in this 
                paragraph precludes the Secretary from including 
                additional transportation facilities that are eligible 
                for funding under the tribal transportation program in 
                the inventory used for the national funding allocation 
                if such additional facilities are included in the 
                inventory in a uniform and consistent manner nationally.
                    ``(E) Bridges.--All bridges in the inventory shall 
                be recorded in the national bridge inventory 
                administered by the Secretary under section 144.

[[Page 126 STAT. 480]]

            ``(2) Regulations.--Notwithstanding sections 563(a) and 
        565(a) of title 5, the Secretary of the Interior shall maintain 
        any regulations governing the tribal transportation program.
            ``(3) Basis for funding formula.--
                    ``(A) Basis.--
                          ``(i) In general.--After making the set asides 
                      authorized under subparagraph (C) and subsections 
                      (c), (d), and (e) on October 1 of each fiscal 
                      year, the Secretary shall distribute the remainder 
                      authorized to be appropriated for the tribal 
                      transportation program under this section among 
                      Indian tribes as follows:
                                    ``(I) For fiscal year 2013--
                                            ``(aa) for each Indian 
                                        tribe, 80 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(II) For fiscal year 2014--
                                            ``(aa) for each Indian 
                                        tribe, 60 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(III) For fiscal year 2015--
                                            ``(aa) for each Indian 
                                        tribe, 40 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(IV) For fiscal year 2016 and 
                                thereafter--
                                            ``(aa) for each Indian 
                                        tribe, 20 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                          ``(ii) Tribal high priority projects.--The 
                      High Priority Projects program as included in the 
                      Tribal Transportation Allocation Methodology of 
                      part 170 of title 25, Code of Federal Regulations 
                      (as in effect on the date of enactment of the MAP-
                      21), shall not continue in effect.
                    ``(B) Tribal shares.--Tribal shares under this 
                program shall be determined using the national tribal 
                transportation facility inventory as calculated for 
                fiscal year 2012, and the most recent data on American 
                Indian and Alaska Native population within each Indian 
                tribe's American Indian/Alaska Native Reservation or 
                Statistical Area, as computed under the Native American 
                Housing Assistance

[[Page 126 STAT. 481]]

                and Self-Determination Act of 1996 (25 U.S.C. 4101 et 
                seq.), in the following manner:
                          ``(i) 27 percent in the ratio that the total 
                      eligible road mileage in each tribe bears to the 
                      total eligible road mileage of all American 
                      Indians and Alaskan Natives. For the purposes of 
                      this calculation, eligible road mileage shall be 
                      computed based on the inventory described in 
                      paragraph (1), using only facilities included in 
                      the inventory described in clause (i), (ii), or 
                      (iii) of paragraph (1)(B).
                          ``(ii) 39 percent in the ratio that the total 
                      population in each tribe bears to the total 
                      population of all American Indians and Alaskan 
                      Natives.
                          ``(iii) 34 percent shall be divided equally 
                      among each Bureau of Indian Affairs region. Within 
                      each region, such share of funds shall be 
                      distributed to each Indian tribe in the ratio that 
                      the average total relative need distribution 
                      factors and population adjustment factors from 
                      fiscal years 2005 through 2011 for a tribe bears 
                      to the average total of relative need distribution 
                      factors and population adjustment factors for 
                      fiscal years 2005 through 2011 in that region.
                    ``(C) Tribal supplemental funding.--
                          ``(i) Tribal supplemental funding amount.--Of 
                      funds made available for each fiscal year for the 
                      tribal transportation program, the Secretary shall 
                      set aside the following amount for a tribal 
                      supplemental program:
                                    ``(I) If the amount made available 
                                for the tribal transportation program is 
                                less than or equal to $275,000,000, 30 
                                percent of such amount.
                                    ``(II) If the amount made available 
                                for the tribal transportation program 
                                exceeds $275,000,000--
                                            ``(aa) $82,500,000; plus
                                            ``(bb) 12.5 percent of the 
                                        amount made available for the 
                                        tribal transportation program in 
                                        excess of $275,000,000.
                          ``(ii) Tribal supplemental allocation.--The 
                      Secretary shall distribute tribal supplemental 
                      funds as follows:
                                    ``(I) Distribution among regions.--
                                Of the amounts set aside under clause 
                                (i), the Secretary shall distribute to 
                                each region of the Bureau of Indian 
                                Affairs a share of tribal supplemental 
                                funds in proportion to the regional 
                                total of tribal shares based on the 
                                cumulative tribal shares of all Indian 
                                tribes within such region under 
                                subparagraph (B).
                                    ``(II) Distribution within a 
                                region.--Of the amount that a region 
                                receives under subclause (I), the 
                                Secretary shall distribute tribal 
                                supplemental funding among Indian tribes 
                                within such region as follows:
                                            ``(aa) Tribal supplemental 
                                        amounts.--The Secretary shall 
                                        determine-- 
                                        <<NOTE: Determination.>> 
                                                ``(AA) which such Indian 
                                            tribes would be entitled 
                                            under subparagraph (A) to

[[Page 126 STAT. 482]]

                                            receive in a fiscal year 
                                            less funding than they would 
                                            receive in fiscal year 2011 
                                            pursuant to the relative 
                                            need distribution factor and 
                                            population adjustment 
                                            factor, as described in 
                                            subpart C of part 170 of 
                                            title 25, Code of Federal 
                                            Regulations (as in effect on 
                                            the date of enactment of the 
                                            MAP-21); and
                                                ``(BB) the combined 
                                            amount that such Indian 
                                            tribes would be entitled to 
                                            receive in fiscal year 2011 
                                            pursuant to such relative 
                                            need distribution factor and 
                                            population adjustment factor 
                                            in excess of the amount that 
                                            they would be entitled to 
                                            receive in the fiscal year 
                                            under subparagraph (B).
                                            ``(bb) Combined amount.--
                                        Subject to subclause (III), the 
                                        Secretary shall distribute to 
                                        each Indian tribe that meets the 
                                        criteria described in item 
                                        (aa)(AA) a share of funding 
                                        under this subparagraph in 
                                        proportion to the share of the 
                                        combined amount determined under 
                                        item (aa)(BB) attributable to 
                                        such Indian tribe.
                                    ``(III) Ceiling.--An Indian tribe 
                                may not receive under subclause (II) and 
                                based on its tribal share under 
                                subparagraph (A) a combined amount that 
                                exceeds the amount that such Indian 
                                tribe would be entitled to receive in 
                                fiscal year 2011 pursuant to the 
                                relative need distribution factor and 
                                population adjustment factor, as 
                                described in subpart C of part 170 of 
                                title 25, Code of Federal Regulations 
                                (as in effect on the date of enactment 
                                of the MAP-21).
                                    ``(IV) Other amounts.--If the amount 
                                made available for a region under 
                                subclause (I) exceeds the amount 
                                distributed among Indian tribes within 
                                that region under subclause (II), the 
                                Secretary shall distribute the remainder 
                                of such region's funding under such 
                                subclause among all Indian tribes in 
                                that region in proportion to the 
                                combined amount that each such Indian 
                                tribe received under subparagraph (A) 
                                and subclauses (I), (II), and (III).]
            ``(4) Transferred funds.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 30 days after the date on which funds are made 
                available to the Secretary of the Interior under this 
                paragraph, the funds shall be distributed to, and made 
                available for immediate use by, eligible Indian tribes, 
                in accordance with the formula for distribution of funds 
                under the tribal transportation program.
                    ``(B) Use of funds.--Notwithstanding any other 
                provision of this section, funds made available to 
                Indian tribes for tribal transportation facilities shall 
                be expended on projects identified in a transportation 
                improvement program approved by the Secretary.

[[Page 126 STAT. 483]]

            ``(5) Health and safety assurances.--Notwithstanding any 
        other provision of law, an Indian tribal government may approve 
        plans, specifications, and estimates and commence road and 
        bridge construction with funds made available from the tribal 
        transportation program through a contract or agreement under 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.), if the Indian tribal government--
                    ``(A) provides assurances in the contract or 
                agreement that the construction will meet or exceed 
                applicable health and safety standards;
                    ``(B) obtains the advance review of the plans and 
                specifications from a State-licensed civil engineer that 
                has certified that the plans and specifications meet or 
                exceed the applicable health and safety standards; and
                    ``(C) provides a copy of the certification under 
                subparagraph (A) to the Deputy Assistant Secretary for 
                Tribal Government Affairs, Department of Transportation, 
                or the Assistant Secretary for Indian Affairs, 
                Department of the Interior, as appropriate.
            ``(6) Contracts and agreements with indian tribes.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or any interagency agreement, program 
                guideline, manual, or policy directive, all funds made 
                available through the Secretary of the Interior under 
                this chapter and section 125(e) for tribal 
                transportation facilities to pay for the costs of 
                programs, services, functions, and activities, or 
                portions of programs, services, functions, or 
                activities, that are specifically or functionally 
                related to the cost of planning, research, engineering, 
                and construction of any tribal transportation facility 
                shall be made available, upon request of the Indian 
                tribal government, to the Indian tribal government for 
                contracts and agreements for such planning, research, 
                engineering, and construction in accordance with Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 450 et seq.).
                    ``(B) Exclusion of agency participation.--All funds, 
                including contract support costs, for programs, 
                functions, services, or activities, or portions of 
                programs, services, functions, or activities, including 
                supportive administrative functions that are otherwise 
                contractible to which subparagraph (A) applies, shall be 
                paid in accordance with subparagraph (A), without regard 
                to the organizational level at which the Department of 
                the Interior has previously carried out such programs, 
                functions, services, or activities.
            ``(7) Contracts and agreements with indian tribes.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or any interagency agreement, program 
                guideline, manual, or policy directive, all funds made 
                available to an Indian tribal government under this 
                chapter for a tribal transportation facility program or 
                project shall be made available, on the request of the 
                Indian tribal government, to the Indian tribal 
                government for use in carrying out, in accordance with 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450 et seq.), contracts and agreements 
                for the planning, research, design, engineering, 
                construction, and maintenance relating to the program or 
                project.

[[Page 126 STAT. 484]]

                    ``(B) Exclusion of agency participation.--In 
                accordance with subparagraph (A), all funds, including 
                contract support costs, for a program or project to 
                which subparagraph (A) applies shall be paid to the 
                Indian tribal government without regard to the 
                organizational level at which the Department of the 
                Interior has previously carried out, or the Department 
                of Transportation has previously carried out under the 
                tribal transportation program, the programs, functions, 
                services, or activities involved.
                    ``(C) Consortia.--Two or more Indian tribes that are 
                otherwise eligible to participate in a program or 
                project to which this chapter applies may form a 
                consortium to be considered as a single Indian tribe for 
                the purpose of participating in the project under this 
                section.
                    ``(D) Secretary as signatory.--Notwithstanding any 
                other provision of law, the Secretary is authorized to 
                enter into a funding agreement with an Indian tribal 
                government to carry out a tribal transportation facility 
                program or project under subparagraph (A) that is 
                located on an Indian reservation or provides access to 
                the reservation or a community of the Indian tribe.
                    ``(E) Funding.--The amount an Indian tribal 
                government receives for a program or project under 
                subparagraph (A) shall equal the sum of the funding that 
                the Indian tribal government would otherwise receive for 
                the program or project in accordance with the funding 
                formula established under this subsection and such 
                additional amounts as the Secretary determines equal the 
                amounts that would have been withheld for the costs of 
                the Bureau of Indian Affairs for administration of the 
                program or project.
                    ``(F) Eligibility.--
                          ``(i) In general.--Subject to clause (ii) and 
                      the approval of the Secretary, funds may be made 
                      available under subparagraph (A) to an Indian 
                      tribal government for a program or project in a 
                      fiscal year only if the Indian tribal government 
                      requesting such funds demonstrates to the 
                      satisfaction of the Secretary financial stability 
                      and financial management capability during the 3 
                      fiscal years immediately preceding the fiscal year 
                      for which the request is being made.
                          ``(ii) Considerations.--An Indian tribal 
                      government that had no uncorrected significant and 
                      material audit exceptions in the required annual 
                      audit of the contracts or self-governance funding 
                      agreements made by the Indian tribe with any 
                      Federal agency under the Indian Self-Determination 
                      and Education Assistance Act (25 U.S.C. 450 et 
                      seq.) during the 3-fiscal year period referred in 
                      clause (i) shall be conclusive evidence of the 
                      financial stability and financial management 
                      capability of the Indian tribe for purposes of 
                      clause (i).
                    ``(G) Assumption of functions and duties.--An Indian 
                tribal government receiving funding under subparagraph 
                (A) for a program or project shall assume all functions 
                and duties that the Secretary of the Interior would have 
                performed with respect to a program or project under 
                this chapter, other than those functions and duties that

[[Page 126 STAT. 485]]

                inherently cannot be legally transferred under the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450 et seq.).
                    ``(H) Powers.--An Indian tribal government receiving 
                funding under subparagraph (A) for a program or project 
                shall have all powers that the Secretary of the Interior 
                would have exercised in administering the funds 
                transferred to the Indian tribal government for such 
                program or project under this section if the funds had 
                not been transferred, except to the extent that such 
                powers are powers that inherently cannot be legally 
                transferred under the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450 et seq.).
                    ``(I) Dispute resolution.--In the event of a 
                disagreement between the Secretary or the Secretary of 
                the Interior and an Indian tribe over whether a 
                particular function, duty, or power may be lawfully 
                transferred to the Indian tribe under the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450 et seq.), the Indian tribe shall have the right to 
                pursue all alternative dispute resolution and appeal 
                procedures authorized by that Act, including regulations 
                issued to carry out the Act.
                    ``(J) Termination of contract or agreement.--On the 
                date of the termination of a contract or agreement under 
                this section by an Indian tribal government, the 
                Secretary shall transfer all funds that would have been 
                allocated to the Indian tribal government under the 
                contract or agreement to the Secretary of the Interior 
                to provide continued transportation services in 
                accordance with applicable law.

    ``(c) Planning.--
            ``(1) In general.--For each fiscal year, not more than 2 
        percent of the funds made available for the tribal 
        transportation program shall be allocated among Indian tribal 
        governments that apply for transportation planning pursuant to 
        the Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.).
            ``(2) Requirement.--An Indian tribal government, in 
        cooperation with the Secretary of the Interior and, as 
        appropriate, with a State, local government, or metropolitan 
        planning organization, shall carry out a transportation planning 
        process in accordance with section 201(c).
            ``(3) Selection and approval of projects.--A project funded 
        under this section shall be--
                    ``(A) selected by the Indian tribal government from 
                the transportation improvement program; and
                    ``(B) subject to the approval of the Secretary of 
                the Interior and the Secretary.

    ``(d) Tribal Transportation Facility Bridges.--
            ``(1) Nationwide priority program.--The Secretary shall 
        maintain a nationwide priority program for improving deficient 
        bridges eligible for the tribal transportation program.
            ``(2) Funding.--Before making any distribution under 
        subsection (b), the Secretary shall set aside not more than 2 
        percent of the funds made available under the tribal 
        transportation program for each fiscal year to be allocated--

[[Page 126 STAT. 486]]

                    ``(A) to carry out any planning, design, 
                engineering, preconstruction, construction, and 
                inspection of a project to replace, rehabilitate, 
                seismically retrofit, paint, apply calcium magnesium 
                acetate, sodium acetate/formate, or other 
                environmentally acceptable, minimally corrosive anti-
                icing and deicing composition; or
                    ``(B) to implement any countermeasure for deficient 
                tribal transportation facility bridges, including 
                multiple-pipe culverts.
            ``(3) Eligible bridges.--To be eligible to receive funding 
        under this subsection, a bridge described in paragraph (1) 
        shall--
                    ``(A) have an opening of not less than 20 feet;
                    ``(B) be classified as a tribal transportation 
                facility; and
                    ``(C) be structurally deficient or functionally 
                obsolete.
            ``(4) Approval requirement.--The Secretary may make funds 
        available under this subsection for preliminary engineering, 
        construction, and construction engineering activities after 
        approval of required documentation and verification of 
        eligibility in accordance with this title.

    ``(e) Safety.--
            ``(1) Funding.--Before making any distribution under 
        subsection (b), the Secretary shall set aside not more than 2 
        percent of the funds made available under the tribal 
        transportation program for each fiscal year to be allocated 
        based on an identification and analysis of highway safety issues 
        and opportunities on tribal land, as determined by the 
        Secretary, on application of the Indian tribal governments for 
        eligible projects described in section 148(a)(4).
            ``(2) Project selection.--An Indian tribal government, in 
        cooperation with the Secretary of the Interior and, as 
        appropriate, with a State, local government, or metropolitan 
        planning organization, shall select projects from the 
        transportation improvement program, subject to the approval of 
        the Secretary and the Secretary of the Interior.

    ``(f) Federal-aid Eligible Projects.--Before approving as a project 
on a tribal transportation facility any project eligible for funds 
apportioned under section 104 in a State, the Secretary shall, for 
projects on tribal transportation facilities, determine that the 
obligation of funds for the project is supplementary to and not in lieu 
of the obligation of a fair and equitable share of funds apportioned to 
the State under section 104.
``Sec. 203. Federal lands transportation program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the Federal 
        lands transportation program shall be used by the Secretary of 
        Transportation and the Secretary of the appropriate Federal land 
        management agency to pay the costs of--
                    ``(A) program administration, transportation 
                planning, research, preventive maintenance, engineering, 
                rehabilitation, restoration, construction, and 
                reconstruction of Federal lands transportation 
                facilities, and--
                          ``(i) adjacent vehicular parking areas;
                          ``(ii) acquisition of necessary scenic 
                      easements and scenic or historic sites;

[[Page 126 STAT. 487]]

                          ``(iii) provision for pedestrians and 
                      bicycles;
                          ``(iv) environmental mitigation in or adjacent 
                      to Federal land open to the public--
                                    ``(I) to improve public safety and 
                                reduce vehicle-caused wildlife mortality 
                                while maintaining habitat connectivity; 
                                and
                                    ``(II) to mitigate the damage to 
                                wildlife, aquatic organism passage, 
                                habitat, and ecosystem connectivity, 
                                including the costs of constructing, 
                                maintaining, replacing, or removing 
                                culverts and bridges, as appropriate;
                          ``(v) construction and reconstruction of 
                      roadside rest areas, including sanitary and water 
                      facilities;
                          ``(vi) congestion mitigation; and
                          ``(vii) other appropriate public road 
                      facilities, as determined by the Secretary;
                    ``(B) operation and maintenance of transit 
                facilities;
                    ``(C) any transportation project eligible for 
                assistance under this title that is on a public road 
                within or adjacent to, or that provides access to, 
                Federal lands open to the public; and
                    ``(D) not more $10,000,000 of the amounts made 
                available per fiscal year to carry out this section for 
                activities eligible under subparagraph (A)(iv).
            ``(2) Contract.--In connection with an activity described in 
        paragraph (1), the Secretary and the Secretary of the 
        appropriate Federal land management agency may enter into a 
        contract or other appropriate agreement with respect to the 
        activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.
            ``(3) Administration.--All appropriations for the 
        construction and improvement of Federal lands transportation 
        facilities shall be administered in conformity with regulations 
        and agreements jointly approved by the Secretary and the 
        Secretary of the appropriate Federal land managing agency.
            ``(4) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision shall be credited to 
                appropriations available for the class of Federal lands 
                transportation facilities to which the funds were 
                contributed.
            ``(5) Competitive bidding.--
                    ``(A) In general.--Subject to subparagraph (B), 
                construction of each project shall be performed by 
                contract awarded by competitive bidding.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the Secretary or the Secretary of the appropriate 
                Federal land management agency affirmatively finds that, 
                under the circumstances relating to the project, a 
                different method is in the public interest.

    ``(b) Agency Program Distributions.--

[[Page 126 STAT. 488]]

            ``(1) <<NOTE: Effective date. Deadlines.>> In general.--On 
        October 1, 2011, and on October 1 of each fiscal year 
        thereafter, the Secretary shall allocate the sums authorized to 
        be appropriated for the fiscal year for the Federal lands 
        transportation program on the basis of applications of need, as 
        determined by the Secretary--
                    ``(A) in consultation with the Secretaries of the 
                applicable Federal land management agencies; and
                    ``(B) in coordination with the transportation plans 
                required under section 201 of the respective 
                transportation systems of--
                          ``(i) the National Park Service;
                          ``(ii) the Forest Service;
                          ``(iii) the United States Fish and Wildlife 
                      Service;
                          ``(iv) the Corps of Engineers; and
                          ``(v) the Bureau of Land Management.
            ``(2) Applications.--
                    ``(A) Requirements.--Each application submitted by a 
                Federal land management agency shall include proposed 
                programs at various potential funding levels, as defined 
                by the Secretary following collaborative discussions 
                with applicable Federal land management agencies.
                    ``(B) Consideration by secretary.--In evaluating an 
                application submitted under subparagraph (A), the 
                Secretary shall consider the extent to which the 
                programs support--
                          ``(i) the transportation goals of--
                                    ``(I) a state of good repair of 
                                transportation facilities;
                                    ``(II) a reduction of bridge 
                                deficiencies, and
                                    ``(III) an improvement of safety;
                          ``(ii) high-use Federal recreational sites or 
                      Federal economic generators; and
                          ``(iii) the resource and asset management 
                      goals of the Secretary of the respective Federal 
                      land management agency.
                    ``(C) Permissive contents.--Applications may include 
                proposed programs the duration of which extend over a 
                multiple-year period to support long-term transportation 
                planning and resource management initiatives.

    ``(c) National Federal Lands Transportation Facility Inventory.--
            ``(1) In general.--The Secretaries of the appropriate 
        Federal land management agencies, in cooperation with the 
        Secretary, shall maintain a comprehensive national inventory of 
        public Federal lands transportation facilities.
            ``(2) Transportation facilities included in the 
        inventories.--To identify the Federal lands transportation 
        system and determine the relative transportation needs among 
        Federal land management agencies, the inventories shall include, 
        at a minimum, facilities that--
                    ``(A) provide access to high-use Federal recreation 
                sites or Federal economic generators, as determined by 
                the Secretary in coordination with the respective 
                Secretaries of the appropriate Federal land management 
                agencies; and
                    ``(B) are owned by 1 of the following agencies:
                          ``(i) The National Park Service.
                          ``(ii) The Forest Service.

[[Page 126 STAT. 489]]

                          ``(iii) The United States Fish and Wildlife 
                      Service.
                          ``(iv) The Bureau of Land Management.
                          ``(v) The Corps of Engineers.
            ``(3) Availability.--The inventories shall be made available 
        to the Secretary.
            ``(4) Updates.--The Secretaries of the appropriate Federal 
        land management agencies shall update the inventories of the 
        appropriate Federal land management agencies, as determined by 
        the Secretary after collaborative discussions with the 
        Secretaries of the appropriate Federal land management agencies.
            ``(5) Review.--A decision to add or remove a facility from 
        the inventory shall not be considered a Federal action for 
        purposes of review under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).

    ``(d) Bicycle Safety.--The Secretary of the appropriate Federal land 
management agency shall prohibit the use of bicycles on each federally 
owned road that has a speed limit of 30 miles per hour or greater and an 
adjacent paved path for use by bicycles within 100 yards of the road 
unless the Secretary determines that the bicycle level of service on 
that roadway is rated B or higher.
``Sec. 204. Federal lands access program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the Federal 
        lands access program shall be used by the Secretary of 
        Transportation and the Secretary of the appropriate Federal land 
        management agency to pay the cost of--
                    ``(A) transportation planning, research, 
                engineering, preventive maintenance, rehabilitation, 
                restoration, construction, and reconstruction of Federal 
                lands access transportation facilities located on or 
                adjacent to, or that provide access to, Federal land, 
                and--
                          ``(i) adjacent vehicular parking areas;
                          ``(ii) acquisition of necessary scenic 
                      easements and scenic or historic sites;
                          ``(iii) provisions for pedestrians and 
                      bicycles;
                          ``(iv) environmental mitigation in or adjacent 
                      to Federal land to improve public safety and 
                      reduce vehicle-caused wildlife mortality while 
                      maintaining habitat connectivity;
                          ``(v) construction and reconstruction of 
                      roadside rest areas, including sanitary and water 
                      facilities; and
                          ``(vi) other appropriate public road 
                      facilities, as determined by the Secretary;
                    ``(B) operation and maintenance of transit 
                facilities; and
                    ``(C) any transportation project eligible for 
                assistance under this title that is within or adjacent 
                to, or that provides access to, Federal land.
            ``(2) Contract.--In connection with an activity described in 
        paragraph (1), the Secretary and the Secretary of the 
        appropriate Federal land management agency may enter into a 
        contract or other appropriate agreement with respect to the 
        activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.

[[Page 126 STAT. 490]]

            ``(3) Administration.--All appropriations for the 
        construction and improvement of Federal lands access 
        transportation facilities shall be administered in conformity 
        with regulations and agreements approved by the Secretary.
            ``(4) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision for a Federal lands 
                access transportation facility project shall be credited 
                to appropriations available under the Federal lands 
                access program.
            ``(5) Competitive bidding.--
                    ``(A) In general.--Subject to subparagraph (B), 
                construction of each project shall be performed by 
                contract awarded by competitive bidding.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the Secretary or the Secretary of the appropriate 
                Federal land management agency affirmatively finds that, 
                under the circumstances relating to the project, a 
                different method is in the public interest.

    ``(b) Program Distributions.--
            ``(1) In general.--Funding made available to carry out the 
        Federal lands access program shall be allocated among those 
        States that have Federal land, in accordance with the following 
        formula:
                    ``(A) 80 percent of the available funding for use in 
                those States that contain at least 1 \1/2\ percent of 
                the total public land in the United States managed by 
                the agencies described in paragraph (2), to be 
                distributed as follows:
                          ``(i) 30 percent in the ratio that--
                                    ``(I) recreational visitation within 
                                each such State; bears to
                                    ``(II) the recreational visitation 
                                within all such States.
                          ``(ii) 5 percent in the ratio that--
                                    ``(I) the Federal land area within 
                                each such State; bears to
                                    ``(II) the Federal land area in all 
                                such States.
                          ``(iii) 55 percent in the ratio that--
                                    ``(I) the Federal public road miles 
                                within each such State; bears to
                                    ``(II) the Federal public road miles 
                                in all such States.
                          ``(iv) 10 percent in the ratio that--
                                    ``(I) the number of Federal public 
                                bridges within each such State; bears to
                                    ``(II) the number of Federal public 
                                bridges in all such States.
                    ``(B) 20 percent of the available funding for use in 
                those States that do not contain at least 1 \1/2\ 
                percent of the total public land in the United States 
                managed by the agencies described in paragraph (2), to 
                be distributed as follows:
                          ``(i) 30 percent in the ratio that--

[[Page 126 STAT. 491]]

                                    ``(I) recreational visitation within 
                                each such State; bears to
                                    ``(II) the recreational visitation 
                                within all such States.
                          ``(ii) 5 percent in the ratio that--
                                    ``(I) the Federal land area within 
                                each such State; bears to
                                    ``(II) the Federal land area in all 
                                such States.
                          ``(iii) 55 percent in the ratio that--
                                    ``(I) the Federal public road miles 
                                within each such State; bears to
                                    ``(II) the Federal public road miles 
                                in all such States.
                          ``(iv) 10 percent in the ratio that--
                                    ``(I) the number of Federal public 
                                bridges within each such State; bears to
                                    ``(II) the number of Federal public 
                                bridges in all such States.
            ``(2) Data source.--Data necessary to distribute funding 
        under paragraph (1) shall be provided by the following Federal 
        land management agencies:
                    ``(A) The National Park Service.
                    ``(B) The Forest Service.
                    ``(C) The United States Fish and Wildlife Service.
                    ``(D) The Bureau of Land Management.
                    ``(E) The Corps of Engineers.

    ``(c) Programming Decisions Committee.--
            ``(1) In general.--Programming decisions shall be made 
        within each State by a committee comprised of--
                    ``(A) a representative of the Federal Highway 
                Administration;
                    ``(B) a representative of the State Department of 
                Transportation; and
                    ``(C) a representative of any appropriate political 
                subdivision of the State.
            ``(2) Consultation requirement.--The committee described in 
        paragraph (1) shall cooperate with each applicable Federal 
        agency in each State before any joint discussion or final 
        programming decision.
            ``(3) Project preference.--In making a programming decision 
        under paragraph (1), the committee shall give preference to 
        projects that provide access to, are adjacent to, or are located 
        within high-use Federal recreation sites or Federal economic 
        generators, as identified by the Secretaries of the appropriate 
        Federal land management agencies.''.

    (b) <<NOTE: Repeal.>> Public Lands Development Roads and Trails.--
Section 214 of title 23, United States Code, is repealed.

    (c) Conforming Amendments.--
            (1) Chapter 2 analysis.--The analysis for chapter 2 of title 
        23, United States Code, is amended--
                    (A) by striking the items relating to sections 201 
                through 204 and inserting the following:

``201. Federal lands and tribal transportation programs.
``202. Tribal transportation program.
``203. Federal lands transportation program.
``204. Federal lands access program.''; and

                    (B) by striking the item relating to section 214.

[[Page 126 STAT. 492]]

            (2) Definition.--Section 138(a) of title 23, United States 
        Code, is amended in the third sentence by striking ``park road 
        or parkway under section 204 of this title'' and inserting 
        ``Federal lands transportation facility''.
            (3) Rules, regulations, and recommendations.--Section 315 of 
        title 23, United States Code, is amended by striking ``204(f)'' 
        and inserting ``202(a)(5), 203(a)(3),''.
SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

    Section 1301 of the SAFETEA-LU (23 U.S.C. 101 note; 119 Stat. 1198) 
is amended--
            (1) in subsection (b), by striking ``States'' and inserting 
        ``eligible applicants'';
            (2) in subsection (c), by striking paragraph (3) and 
        inserting the following:
            ``(3) <<NOTE: Deadline.>> Eligible applicant.--The term 
        `eligible applicant' means--
                    ``(A) a State department of transportation or a 
                group of State departments of transportation;
                    ``(B) a tribal government or consortium of tribal 
                governments;
                    ``(C) a transit agency; or
                    ``(D) a multi-State or multi-jurisdictional group of 
                the agencies described in subparagraphs (A) through 
                (C).'';
            (3) in subsection (d)(2), by striking ``75'' and inserting 
        ``50'';
            (4) in subsection (e), by striking ``State'' and inserting 
        ``eligible applicant'';
            (5) in subsection (f)(3) by striking subparagraph (B) and 
        inserting the following:
                    ``(B) improves roadways vital to national energy 
                security; and'';
            (6) in subsection (g)(1) by adding at the end the following:
                    ``(E) Congressional approval.--The Secretary may not 
                issue a letter of intent, enter into a full funding 
                grant agreement under paragraph (2), or make any other 
                obligation or commitment to fund a project under this 
                section if a joint resolution of disapproval is enacted 
                disapproving funding for the project before the last day 
                of the 60-day period described in subparagraph (B).'';
            (7) in subsection (k), by adding at the end the following:
            ``(3) Project selection justifications.--
                    ``(A) <<NOTE: Deadline. Reports.>> In general.--Not 
                later than 30 days after the date on which the Secretary 
                selects a project for funding under this section, the 
                Secretary shall submit to the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Environment and 
                Public Works of the Senate a report that describes the 
                reasons for selecting the project, based on the criteria 
                described in subsection (f).
                    ``(B) Inclusions.--The report submitted under 
                subparagraph (A) shall specify each criteria described 
                in subsection (f) that the project meets.
                    ``(C) <<NOTE: Web posting.>> Availability.--The 
                Secretary shall make available on the website of the 
                Department the report submitted under subparagraph 
                (A).''; and
            (8) by striking subsections (l) and (m) and inserting the 
        following:

[[Page 126 STAT. 493]]

    ``(l) Report.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the MAP-21, the Secretary shall submit a report to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Environment and Public 
        Works of the Senate regarding projects of national and regional 
        significance.
            ``(2) Purpose.--The purpose of the report issued under this 
        subsection shall be to identify projects of national and 
        regional significance that--
                    ``(A) will significantly improve the performance of 
                the Federal-aid highway system, nationally or 
                regionally;
                    ``(B) is able to--
                          ``(i) generate national economic benefits that 
                      reasonably exceed the costs of the projects, 
                      including increased access to jobs, labor, and 
                      other critical economic inputs;
                          ``(ii) reduce long-term congestion, including 
                      impacts in the State, region, and the United 
                      States, and increase speed, reliability, and 
                      accessibility of the movement of people or 
                      freight; and
                          ``(iii) improve transportation safety, 
                      including reducing transportation accidents, and 
                      serious injuries and fatalities; and
                    ``(C) can be supported by an acceptable degree of 
                non-Federal financial commitments.
            ``(3) Contents.--The report issued under this subsection 
        shall include--
                    ``(A) a comprehensive list of each project of 
                national and regional significance that--
                          ``(i) has been complied through a survey of 
                      State departments of transportation; and
                          ``(ii) has been classified by the Secretary as 
                      a project of regional or national significance in 
                      accordance with this section;
                    ``(B) an analysis of the information collected under 
                paragraph (1), including a discussion of the factors 
                supporting each classification of a project as a project 
                of regional or national significance; and
                    ``(C) recommendations on financing for eligible 
                project costs.

    ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for fiscal year 
2013, to remain available until expended.''.
SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 
                          FACILITIES.

    (a) Construction of Ferry Boats and Ferry Terminal Facilities.--
Section 147 of title 23, United States Code, is amended--
            (1) by striking subsections (c) and (d);
            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (3) by inserting after subsection (b) the following:

[[Page 126 STAT. 494]]

    ``(c) Distribution of Funds.--Of the amounts made available to ferry 
systems and public entities responsible for developing ferries under 
this section for a fiscal year, 100 percent shall be allocated in 
accordance with the formula set forth in subsection (d).
    ``(d) Formula.--Of the amounts allocated pursuant to subsection 
(c)--
            ``(1) 20 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the number of ferry passengers carried by each 
                ferry system in the most recent fiscal year; bears to
                    ``(B) the number of ferry passengers carried by all 
                ferry systems in the most recent fiscal year;
            ``(2) 45 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the number of vehicles carried by each ferry 
                system in the most recent fiscal year; bears to
                    ``(B) the number of vehicles carried by all ferry 
                systems in the most recent fiscal year; and
            ``(3) 35 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the total route miles serviced by each ferry 
                system; bears to
                    ``(B) the total route miles serviced by all ferry 
                systems.

    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $67,000,000 for each of fiscal years 
2013 and 2014.''.
    (b) National Ferry Database.--Section 1801(e) of the SAFETEA-LU (23 
U.S.C. 129 note; Public Law 109-59) is amended--
            (1) in paragraph (2), by inserting ``, including any 
        Federal, State, and local government funding sources,'' after 
        ``sources''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B), the 
                following:
                    ``(C) ensure that the database is consistent with 
                the national transit database maintained by the Federal 
                Transit Administration; and''; and
                    (D) in subparagraph (D) (as redesignated by 
                subparagraph (B)), by striking ``2009'' and inserting 
                ``2014''.
SEC. 1122. TRANSPORTATION ALTERNATIVES.

    (a) In General.--Section 213 of title 23, United States Code, is 
amended to read as follows:
``Sec. 213. Transportation alternatives

    ``(a) Reservation of Funds.--
            ``(1) <<NOTE: Effective dates.>> In general.--On October 1 
        of each of fiscal years 2013 and 2014, the Secretary shall 
        proportionally reserve from the funds apportioned to a State 
        under section 104(b) to carry out the requirements of this 
        section an amount equal to the amount obtained by multiplying 
        the amount determined under paragraph (2) by the ratio that--

[[Page 126 STAT. 495]]

                    ``(A) the amount apportioned to the State for the 
                transportation enhancements program for fiscal year 2009 
                under section 133(d)(2), as in effect on the day before 
                the date of enactment of the MAP-21; bears to
                    ``(B) the total amount of funds apportioned to all 
                States for that fiscal year for the transportation 
                enhancements program for fiscal year 2009.
            ``(2) <<NOTE: Determination.>> Calculation of national 
        amount.--The Secretary shall determine an amount for each fiscal 
        year that is equal to 2 percent of the amounts authorized to be 
        appropriated for such fiscal year from the Highway Trust Fund 
        (other than the Mass Transit Account) to carry out chapters 1, 
        2, 5, and 6 of this title.

    ``(b) Eligible Projects.--A State may obligate the funds reserved 
under this section for any of the following projects or activities:
            ``(1) Transportation alternatives, as defined in section 
        101.
            ``(2) The recreational trails program under section 206.
            ``(3) The safe routes to school program under section 1404 
        of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).
            ``(4) Planning, designing, or constructing boulevards and 
        other roadways largely in the right-of-way of former Interstate 
        System routes or other divided highways.

    ``(c) Allocations of Funds.--
            ``(1) Calculation.--Of the funds reserved in a State under 
        this section--
                    ``(A) 50 percent for a fiscal year shall be 
                obligated under this section to any eligible entity in 
                proportion to their relative shares of the population of 
                the State--
                          ``(i) in urbanized areas of the State with an 
                      urbanized area population of over 200,000;
                          ``(ii) in areas of the State other than urban 
                      areas with a population greater than 5,000; and
                          ``(iii) in other areas of the State; and
                    ``(B) 50 percent shall be obligated in any area of 
                the State.
            ``(2) Metropolitan areas.--Funds attributed to an urbanized 
        area under paragraph (1)(A)(i) may be obligated in the 
        metropolitan area established under section 134 that encompasses 
        the urbanized area.
            ``(3) Distribution among urbanized areas of over 200,000 
        population.--
                    ``(A) In general.--Except as provided in paragraph 
                (1)(B), the amount of funds that a State is required to 
                obligate under paragraph (1)(A)(i) shall be obligated in 
                urbanized areas described in paragraph (1)(A)(i) based 
                on the relative population of the areas.
                    ``(B) Other factors.--A State may obligate the funds 
                described in subparagraph (A) based on other factors if 
                the State and the relevant metropolitan planning 
                organizations jointly apply to the Secretary for the 
                permission to base the obligation on other factors and 
                the Secretary grants the request.
            ``(4) Access to funds.--
                    ``(A) In general.--Each State or metropolitan 
                planning organization required to obligate funds in 
                accordance with

[[Page 126 STAT. 496]]

                paragraph (1) shall develop a competitive process to 
                allow eligible entities to submit projects for funding 
                that achieve the objectives of this subsection.
                    ``(B) Definition of eligible entity.--In this 
                paragraph, the term `eligible entity' means--
                          ``(i) a local government;
                          ``(ii) a regional transportation authority;
                          ``(iii) a transit agency;
                          ``(iv) a natural resource or public land 
                      agency;
                          ``(v) a school district, local education 
                      agency, or school;
                          ``(vi) a tribal government; and
                          ``(vii) any other local or regional 
                      governmental entity with responsibility for or 
                      oversight of transportation or recreational trails 
                      (other than a metropolitan planning organization 
                      or a State agency) that the State determines to be 
                      eligible, consistent with the goals of this 
                      subsection.
            ``(5) Selection of projects.--For funds reserved in a State 
        under this section and suballocated to a metropolitan planning 
        area under paragraph (1)(A)(i), each such metropolitan planning 
        organization shall select projects carried out within the 
        boundaries of the applicable metropolitan planning area, in 
        consultation with the relevant State.

    ``(d) <<NOTE: Effective date.>> Flexibility of Excess Reserved 
Funding.--Beginning in the second fiscal year after the date of 
enactment of the MAP-21, if on August 1 of that fiscal year the 
unobligated balance of available funds reserved by a State under this 
section exceeds 100 percent of such reserved amount in such fiscal year, 
the State may thereafter obligate the amount of excess funds for any 
activity--
            ``(1) that is eligible to receive funding under this 
        section; or
            ``(2) for which the Secretary has approved the obligation of 
        funds for any State under section 149.

    ``(e) Treatment of Projects.--Notwithstanding any other provision of 
law, projects funded under this section (excluding those carried out 
under subsection (f)) shall be treated as projects on a Federal-aid 
highway under this chapter.
    ``(f) Continuation of Certain Recreational Trails Projects.--Each 
State shall--
            ``(1) obligate an amount of funds reserved under this 
        section equal to the amount of the funds apportioned to the 
        State for fiscal year 2009 under section 104(h)(2) for projects 
        relating to recreational trails under section 206;
            ``(2) return 1 percent of those funds to the Secretary for 
        the administration of that program; and
            ``(3) comply with the provisions of the administration of 
        the recreational trails program under section 206, including the 
        use of apportioned funds described under subsection (d)(3)(A) of 
        that section.

    ``(g) <<NOTE: Notification. Deadline.>> State Flexibility.--A State 
may opt out of the recreational trails program under subsection (f) if 
the Governor of the State notifies the Secretary not later than 30 days 
prior to apportionments being made for any fiscal year.''.

[[Page 126 STAT. 497]]

    (b) Conforming Amendment.--The analysis for chapter 2 of title 23, 
United States Code, is amended by striking the item relating to section 
213 and inserting the following:

``213. Transportation alternatives''.

SEC. 1123. <<NOTE: 23 USC 202 note.>> TRIBAL HIGH PRIORITY 
                          PROJECTS PROGRAM.

    (a) Definitions.--In this section:
            (1) Emergency or disaster.--The term ``emergency or 
        disaster'' means damage to a tribal transportation facility 
        that--
                    (A) renders the tribal transportation facility 
                impassable or unusable;
                    (B) is caused by--
                          (i) a natural disaster over a widespread area; 
                      or
                          (ii) a catastrophic failure from an external 
                      cause; and
                    (C) would be eligible under the emergency relief 
                program under section 125 of title 23, United States 
                Code, but does not meet the funding thresholds required 
                by that section.
            (2) List.--The term ``list'' means the funding priority list 
        developed under subsection (c)(5).
            (3) Program.--The term ``program'' means the Tribal High 
        Priority Projects program established under subsection (b)(1).
            (4) Project.--The term ``project'' means a project provided 
        funds under the program.

    (b) Program.--
            (1) In general.--The Secretary shall use amounts made 
        available under subsection (h) to carry out a Tribal High 
        Priority Projects program under which funds shall be provided to 
        eligible applicants in accordance with this section.
            (2) Eligible applicants.--Applicants eligible for program 
        funds under this section include--
                    (A) an Indian tribe whose annual allocation of 
                funding under section 202 of title 23, United States 
                Code, is insufficient to complete the highest priority 
                project of the Indian tribe;
                    (B) a governmental subdivision of an Indian tribe--
                          (i) that is authorized to administer the 
                      funding of the Indian tribe under section 202 of 
                      title 23, United States Code; and
                          (ii) for which the annual allocation under 
                      that section is insufficient to complete the 
                      highest priority project of the Indian tribe; or
                    (C) any Indian tribe that has an emergency or 
                disaster with respect to a transportation facility 
                included on the national inventory of tribal 
                transportation facilities under section 202(b)(1) of 
                title 23, United States Code.

    (c) Project Applications; Funding.--
            (1) In general.--To apply for funds under this section, an 
        eligible applicant shall submit to the Department of the 
        Interior or the Department an application that includes--
                    (A) project scope of work, including deliverables, 
                budget, and timeline;
                    (B) the amount of funds requested;
                    (C) project information addressing--

[[Page 126 STAT. 498]]

                          (i) the ranking criteria identified in 
                      paragraph (3); or
                          (ii) the nature of the emergency or disaster;
                    (D) documentation that the project meets the 
                definition of a tribal transportation facility and is 
                included in the national inventory of tribal 
                transportation facilities under section 202(b)(1) of 
                title 23, United States Code;
                    (E) documentation of official tribal action 
                requesting the project;
                    (F) documentation from the Indian tribe providing 
                authority for the Secretary of the Interior to place the 
                project on a transportation improvement program if the 
                project is selected and approved; and
                    (G) any other information the Secretary of the 
                Interior or Secretary considers appropriate to make a 
                determination.
            (2) Limitation on applications.--An applicant for funds 
        under the program may only have 1 application for assistance 
        under this section pending at any 1 time, including any 
        emergency or disaster application.
            (3) Application ranking.--
                    (A) <<NOTE: Determination.>> In general.--The 
                Secretary of the Interior and the Secretary shall 
                determine the eligibility of, and fund, program 
                applications, subject to the availability of funds.
                    (B) Ranking criteria.--The project ranking criteria 
                for applications under this section shall include--
                          (i) the existence of safety hazards with 
                      documented fatality and injury accidents;
                          (ii) the number of years since the Indian 
                      tribe last completed a construction project funded 
                      by section 202 of title 23, United States Code;
                          (iii) the readiness of the Indian tribe to 
                      proceed to construction or bridge design need;
                          (iv) the percentage of project costs matched 
                      by funds that are not provided under section 202 
                      of title 23, United States Code, with projects 
                      with a greater percentage of other sources of 
                      matching funds ranked ahead of lesser matches);
                          (v) the amount of funds requested, with 
                      requests for lesser amounts given greater 
                      priority;
                          (vi) the challenges caused by geographic 
                      isolation; and
                          (vii) all weather access for employment, 
                      commerce, health, safety, educational resources, 
                      or housing.
            (4) Project scoring matrix.--The project scoring matrix 
        established in the appendix to part 170 of title 25, Code of 
        Regulations (as in effect on the date of enactment of this Act) 
        shall be used to rank all applications accepted under this 
        section.
            (5) Funding priority list.--
                    (A) In general.--The Secretary of the Interior and 
                the Secretary shall jointly produce a funding priority 
                list that ranks the projects approved for funding under 
                the program.
                    (B) Limitation.--The number of projects on the list 
                shall be limited by the amount of funding made 
                available.

[[Page 126 STAT. 499]]

            (6) Timeline.-- <<NOTE: Notification.>> The Secretary of the 
        Interior and the Secretary shall--
                    (A) require applications for funding no sooner than 
                60 days after funding is made available pursuant to 
                subsection (a);
                    (B) notify all applicants and Regions in writing of 
                acceptance of applications;
                    (C) rank all accepted applications in accordance 
                with the project scoring matrix, develop the funding 
                priority list, and return unaccepted applications to the 
                applicant with an explanation of deficiencies;
                    (D) notify all accepted applicants of the projects 
                included on the funding priority list no later than 180 
                days after the application deadline has passed pursuant 
                to subparagraph (A); and
                    (E) distribute funds to successful applicants.

    (d) Emergency or Disaster Project Applications.--
            (1) In general.--Notwithstanding subsection (c)(6), an 
        eligible applicant may submit an emergency or disaster project 
        application at any time during the fiscal year.
            (2) Consideration as priority.--The Secretary shall--
                    (A) consider project applications submitted under 
                paragraph (1) to be a priority; and
                    (B) fund the project applications in accordance with 
                paragraph (3).
            (3) Funding.--
                    (A) In general.--If an eligible applicant submits an 
                application for a project under this subsection before 
                the issuance of the list under subsection (c)(5) and the 
                project is determined to be eligible for program funds, 
                the Secretary of the Interior shall provide funding for 
                the project before providing funding for other approved 
                projects on the list.
                    (B) Submission after issuance of list.--If an 
                eligible applicant submits an application under this 
                subsection after the issuance of the list under 
                subsection (c)(5) and the distribution of program funds 
                in accordance with the list, the Secretary of the 
                Interior shall provide funding for the project on the 
                date on which unobligated funds provided to projects on 
                the list are returned to the Department of the Interior.
                    (C) Effect on other projects.--If the Secretary of 
                the Interior uses funding previously designated for a 
                project on the list to fund an emergency or disaster 
                project under this subsection, the project on the list 
                that did not receive funding as a result of the 
                redesignation of funds shall move to the top of the list 
                the following year.
            (4) Emergency or disaster project cost.--The cost of a 
        project submitted as an emergency or disaster under this 
        subsection shall be at least 10 percent of the distribution of 
        funds of the Indian tribe under section 202(b) of title 23, 
        United States Code.

    (e) Limitation on Use of Funds.--Program funds shall not be used 
for--
            (1) transportation planning;
            (2) research;
            (3) routine maintenance activities;

[[Page 126 STAT. 500]]

            (4) structures and erosion protection unrelated to 
        transportation and roadways;
            (5) general reservation planning not involving 
        transportation;
            (6) landscaping and irrigation systems not involving 
        transportation programs and projects;
            (7) work performed on projects that are not included on a 
        transportation improvement program approved by the Federal 
        Highway Administration, unless otherwise authorized by the 
        Secretary of the Interior and the Secretary;
            (8) the purchase of equipment unless otherwise authorized by 
        Federal law; or
            (9) the condemnation of land for recreational trails.

    (f) Limitation on Project Amounts.--Project funding shall be limited 
to a maximum of $1,000,000 per application, except that funding for 
disaster or emergency projects shall also be limited to the estimated 
cost of repairing damage to the tribal transportation facility.
    (g) Cost Estimate Certification.--All cost estimates prepared for a 
project shall be required to be submitted by the applicant to the 
Secretary of the Interior and the Secretary for certification and 
approval.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated 
        $30,000,000 out of the general fund of the Treasury to carry out 
        the program for each of fiscal years 2013 and 2014.
            (2) Administration.--The funds made available under 
        paragraph (1) shall be administered in the same manner as funds 
        made available for the tribal transportation program under 
        section 202 of title 23, United States Code, except that--
                    (A) the funds made available for the program shall 
                remain available until September 30 of the third fiscal 
                year after the year appropriated; and
                    (B) the Federal share of the cost of a project shall 
                be 100 percent.

                   Subtitle B--Performance Management

SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.

    (a) In General.--Section 134 of title 23, United States Code, is 
amended to read as follows:
``Sec. 134. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest--
            ``(1) to encourage and promote the safe and efficient 
        management, operation, and development of surface transportation 
        systems that will serve the mobility needs of people and freight 
        and foster economic growth and development within and between 
        States and urbanized areas, while minimizing transportation-
        related fuel consumption and air pollution through metropolitan 
        and statewide transportation planning processes identified in 
        this chapter; and
            ``(2) to encourage the continued improvement and evolution 
        of the metropolitan and statewide transportation planning 
        processes by metropolitan planning organizations, State 
        departments of transportation, and public transit operators as 
        guided

[[Page 126 STAT. 501]]

        by the planning factors identified in subsection (h) and section 
        135(d).

    ``(b) Definitions.--In this section and section 135, the following 
definitions apply:
            ``(1) Metropolitan planning area.--The term `metropolitan 
        planning area' means the geographic area determined by agreement 
        between the metropolitan planning organization for the area and 
        the Governor under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy board of 
        an organization established as a result of the designation 
        process under subsection (d).
            ``(3) Nonmetropolitan area.--The term `nonmetropolitan area' 
        means a geographic area outside designated metropolitan planning 
        areas.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and appointed 
        officials of general purpose local government in a 
        nonmetropolitan area with responsibility for transportation.
            ``(5) Regional transportation planning organization.--The 
        term `regional transportation planning organization' means a 
        policy board of an organization established as the result of a 
        designation under section 135(m).
            ``(6) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan planning 
        organization under subsection (j).
            ``(7) Urbanized area.--The term `urbanized area' means a 
        geographic area with a population of 50,000 or more, as 
        determined by the Bureau of the Census.

    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), metropolitan 
        planning organizations designated under subsection (d), in 
        cooperation with the State and public transportation operators, 
        shall develop long-range transportation plans and transportation 
        improvement programs through a performance-driven, outcome-based 
        approach to planning for metropolitan areas of the State.
            ``(2) Contents.--The plans and TIPs for each metropolitan 
        area shall provide for the development and integrated management 
        and operation of transportation systems and facilities 
        (including accessible pedestrian walkways and bicycle 
        transportation facilities) that will function as an intermodal 
        transportation system for the metropolitan planning area and as 
        an integral part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for developing 
        the plans and TIPs shall provide for consideration of all modes 
        of transportation and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the complexity 
        of the transportation problems to be addressed.

    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a metropolitan planning 
        organization shall be designated for each urbanized area with a 
        population of more than 50,000 individuals--

[[Page 126 STAT. 502]]

                    ``(A) by agreement between the Governor and units of 
                general purpose local government that together represent 
                at least 75 percent of the affected population 
                (including the largest incorporated city (based on 
                population) as determined by the Bureau of the Census); 
                or
                    ``(B) in accordance with procedures established by 
                applicable State or local law.
            ``(2) <<NOTE: Deadline.>> Structure.--Not later than 2 years 
        after the date of enactment of MAP-21, each metropolitan 
        planning organization that serves an area designated as a 
        transportation management area shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that administer 
                or operate major modes of transportation in the 
                metropolitan area, including representation by providers 
                of public transportation; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed to interfere with the authority, 
        under any State law in effect on December 18, 1991, of a public 
        agency with multimodal transportation responsibilities--
                    ``(A) to develop the plans and TIPs for adoption by 
                a metropolitan planning organization; and
                    ``(B) to develop long-range capital plans, 
                coordinate transit services and projects, and carry out 
                other activities pursuant to State law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this subsection or any 
        other provision of law shall remain in effect until the 
        metropolitan planning organization is redesignated under 
        paragraph (5).
            ``(5) Redesignation procedures.--
                    ``(A) In general.--A metropolitan planning 
                organization may be redesignated by agreement between 
                the Governor and units of general purpose local 
                government that together represent at least 75 percent 
                of the existing planning area population (including the 
                largest incorporated city (based on population) as 
                determined by the Bureau of the Census) as appropriate 
                to carry out this section.
                    ``(B) Restructuring.--A metropolitan planning 
                organization may be restructured to meet the 
                requirements of paragraph (2) without undertaking a 
                redesignation.
            ``(6) Designation of more than 1 metropolitan planning 
        organization.--More than 1 metropolitan planning organization 
        may be designated within an existing metropolitan planning area 
        only if the Governor and the existing metropolitan planning 
        organization determine that the size and complexity of the 
        existing metropolitan planning area make designation of more 
        than 1 metropolitan planning organization for the area 
        appropriate.

    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this section, the 
        boundaries of a metropolitan planning area shall be determined 
        by agreement between the metropolitan planning organization and 
        the Governor.
            ``(2) <<NOTE: Time period.>> Included area.--Each 
        metropolitan planning area--

[[Page 126 STAT. 503]]

                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected to 
                become urbanized within a 20-year forecast period for 
                the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of the 
                Census.
            ``(3) Identification of new urbanized areas within existing 
        planning area boundaries.--The designation by the Bureau of the 
        Census of new urbanized areas within an existing metropolitan 
        planning area shall not require the redesignation of the 
        existing metropolitan planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                except as provided in subparagraph (B), in the case of 
                an urbanized area designated as a nonattainment area for 
                ozone or carbon monoxide under the Clean Air Act (42 
                U.S.C. 7401 et seq.) as of the date of enactment of the 
                SAFETEA-LU, the boundaries of the metropolitan planning 
                area in existence as of such date of enactment shall be 
                retained.
                    ``(B) Exception.--The boundaries described in 
                subparagraph (A) may be adjusted by agreement of the 
                Governor and affected metropolitan planning 
                organizations in the manner described in subsection 
                (d)(5).
            ``(5) New metropolitan planning areas in nonattainment.--In 
        the case of an urbanized area designated after the date of 
        enactment of the SAFETEA-LU, as a nonattainment area for ozone 
        or carbon monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner described 
                in subsection (d)(1);
                    ``(B) shall encompass the areas described in 
                paragraph (2)(A);
                    ``(C) may encompass the areas described in paragraph 
                (2)(B); and
                    ``(D) may address any nonattainment area identified 
                under the Clean Air Act (42 U.S.C. 7401 et seq.) for 
                ozone or carbon monoxide.

    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage each 
        Governor with responsibility for a portion of a multistate 
        metropolitan area and the appropriate metropolitan planning 
        organizations to provide coordinated transportation planning for 
        the entire metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress is 
        granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, not in 
                conflict with any law of the United States, for 
                cooperative efforts and mutual assistance in support of 
                activities authorized under this section as the 
                activities pertain to interstate areas and localities 
                within the States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine desirable for 
                making the agreements and compacts effective.

[[Page 126 STAT. 504]]

            ``(3) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 metropolitan 
        planning organization has authority within a metropolitan area 
        or an area which is designated as a nonattainment area for ozone 
        or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et 
        seq.), each metropolitan planning organization shall consult 
        with the other metropolitan planning organizations designated 
        for such area and the State in the coordination of plans and 
        TIPs required by this section.
            ``(2) Transportation improvements located in multiple 
        mpos.--If a transportation improvement, funded from the Highway 
        Trust Fund or authorized under chapter 53 of title 49, is 
        located within the boundaries of more than 1 metropolitan 
        planning area, the metropolitan planning organizations shall 
        coordinate plans and TIPs regarding the transportation 
        improvement.
            ``(3) Relationship with other planning officials.--
                    ``(A) In general.--The Secretary shall encourage 
                each metropolitan planning organization to consult with 
                officials responsible for other types of planning 
                activities that are affected by transportation in the 
                area (including State and local planned growth, economic 
                development, environmental protection, airport 
                operations, and freight movements) or to coordinate its 
                planning process, to the maximum extent practicable, 
                with such planning activities.
                    ``(B) Requirements.--Under the metropolitan planning 
                process, transportation plans and TIPs shall be 
                developed with due consideration of other related 
                planning activities within the metropolitan area, and 
                the process shall provide for the design and delivery of 
                transportation services within the metropolitan area 
                that are provided by--
                          ``(i) recipients of assistance under chapter 
                      53 of title 49;
                          ``(ii) governmental agencies and nonprofit 
                      organizations (including representatives of the 
                      agencies and organizations) that receive Federal 
                      assistance from a source other than the Department 
                      of Transportation to provide nonemergency 
                      transportation services; and
                          ``(iii) recipients of assistance under section 
                      204.

    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning process for a 
        metropolitan planning area under this section shall provide for 
        consideration of projects and strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and for freight;

[[Page 126 STAT. 505]]

                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes, for 
                people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The metropolitan transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of this title and in section 5301(c) 
                of title 49.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each metropolitan 
                                planning organization shall establish 
                                performance targets that address the 
                                performance measures described in 
                                section 150(c), where applicable, to use 
                                in tracking progress towards attainment 
                                of critical outcomes for the region of 
                                the metropolitan planning organization.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a metropolitan 
                                planning organization shall be 
                                coordinated with the relevant State to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--Selection of performance targets by a 
                      metropolitan planning organization shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d) of 
                      title 49.
                    ``(C) Timing.--Each metropolitan planning 
                organization shall establish the performance targets 
                under subparagraph (B) not later than 180 days after the 
                date on which the relevant State or provider of public 
                transportation establishes the performance targets.
                    ``(D) Integration of other performance-based 
                plans.--A metropolitan planning organization shall 
                integrate in the metropolitan transportation planning 
                process, directly or by reference, the goals, 
                objectives, performance measures, and targets described 
                in other State transportation plans and transportation 
                processes, as well as any plans developed under chapter 
                53 of title 49 by providers of public transportation, 
                required as part of a performance-based program.
            ``(3) Failure to consider factors.--The failure to consider 
        any factor specified in paragraphs (1) and (2) shall not be 
        reviewable by any court under this title or chapter 53

[[Page 126 STAT. 506]]

        of title 49, subchapter II of chapter 5 of title 5, or chapter 7 
        of title 5 in any matter affecting a transportation plan, a TIP, 
        a project or strategy, or the certification of a planning 
        process.

    ``(i) Development of Transportation Plan.--
            ``(1) Requirements.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall prepare and update a transportation 
                plan for its metropolitan planning area in accordance 
                with the requirements of this subsection.
                    ``(B) Frequency.--
                          ``(i) In general.--The metropolitan planning 
                      organization shall prepare and update such plan 
                      every 4 years (or more frequently, if the 
                      metropolitan planning organization elects to 
                      update more frequently) in the case of each of the 
                      following:
                                    ``(I) Any area designated as 
                                nonattainment, as defined in section 
                                107(d) of the Clean Air Act (42 U.S.C. 
                                7407(d)).
                                    ``(II) Any area that was 
                                nonattainment and subsequently 
                                designated to attainment in accordance 
                                with section 107(d)(3) of that Act (42 
                                U.S.C. 7407(d)(3)) and that is subject 
                                to a maintenance plan under section 175A 
                                of that Act (42 U.S.C. 7505a).
                          ``(ii) <<NOTE: Deadline.>> Other areas.--In 
                      the case of any other area required to have a 
                      transportation plan in accordance with the 
                      requirements of this subsection, the metropolitan 
                      planning organization shall prepare and update 
                      such plan every 5 years unless the metropolitan 
                      planning organization elects to update more 
                      frequently.
            ``(2) Transportation plan.--A transportation plan under this 
        section shall be in a form that the Secretary determines to be 
        appropriate and shall contain, at a minimum, the following:
                    ``(A) Identification of transportation facilities.--
                          ``(i) In general.--An identification of 
                      transportation facilities (including major 
                      roadways, transit, multimodal and intermodal 
                      facilities, nonmotorized transportation 
                      facilities, and intermodal connectors) that should 
                      function as an integrated metropolitan 
                      transportation system, giving emphasis to those 
                      facilities that serve important national and 
                      regional transportation functions.
                          ``(ii) Factors.--In formulating the 
                      transportation plan, the metropolitan planning 
                      organization shall consider factors described in 
                      subsection (h) as the factors relate to a 20-year 
                      forecast period.
                    ``(B) Performance measures and targets.--A 
                description of the performance measures and performance 
                targets used in assessing the performance of the 
                transportation system in accordance with subsection 
                (h)(2).
                    ``(C) System performance report.--A system 
                performance report and subsequent updates evaluating the 
                condition and performance of the transportation system 
                with respect to the performance targets described in 
                subsection (h)(2), including--

[[Page 126 STAT. 507]]

                          ``(i) progress achieved by the metropolitan 
                      planning organization in meeting the performance 
                      targets in comparison with system performance 
                      recorded in previous reports; and
                          ``(ii) for metropolitan planning organizations 
                      that voluntarily elect to develop multiple 
                      scenarios, an analysis of how the preferred 
                      scenario has improved the conditions and 
                      performance of the transportation system and how 
                      changes in local policies and investments have 
                      impacted the costs necessary to achieve the 
                      identified performance targets.
                    ``(D) Mitigation activities.--
                          ``(i) In general.--A long-range transportation 
                      plan shall include a discussion of types of 
                      potential environmental mitigation activities and 
                      potential areas to carry out these activities, 
                      including activities that may have the greatest 
                      potential to restore and maintain the 
                      environmental functions affected by the plan.
                          ``(ii) Consultation.--The discussion shall be 
                      developed in consultation with Federal, State, and 
                      tribal wildlife, land management, and regulatory 
                      agencies.
                    ``(E) Financial plan.--
                          ``(i) In general.--A financial plan that--
                                    ``(I) demonstrates how the adopted 
                                transportation plan can be implemented;
                                    ``(II) indicates resources from 
                                public and private sources that are 
                                reasonably expected to be made available 
                                to carry out the plan; and
                                    ``(III) recommends any additional 
                                financing strategies for needed projects 
                                and programs.
                          ``(ii) Inclusions.--The financial plan may 
                      include, for illustrative purposes, additional 
                      projects that would be included in the adopted 
                      transportation plan if reasonable additional 
                      resources beyond those identified in the financial 
                      plan were available.
                          ``(iii) Cooperative development.--For the 
                      purpose of developing the transportation plan, the 
                      metropolitan planning organization, transit 
                      operator, and State shall cooperatively develop 
                      estimates of funds that will be available to 
                      support plan implementation.
                    ``(F) Operational and management strategies.--
                Operational and management strategies to improve the 
                performance of existing transportation facilities to 
                relieve vehicular congestion and maximize the safety and 
                mobility of people and goods.
                    ``(G) Capital investment and other strategies.--
                Capital investment and other strategies to preserve the 
                existing and projected future metropolitan 
                transportation infrastructure and provide for multimodal 
                capacity increases based on regional priorities and 
                needs.
                    ``(H) Transportation and transit enhancement 
                activities.--Proposed transportation and transit 
                enhancement activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas that are in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act (42 U.S.C. 7401

[[Page 126 STAT. 508]]

        et seq.), the metropolitan planning organization shall 
        coordinate the development of a transportation plan with the 
        process for development of the transportation control measures 
        of the State implementation plan required by that Act.
            ``(4) Optional scenario development.--
                    ``(A) In general.--A metropolitan planning 
                organization may, while fitting the needs and complexity 
                of its community, voluntarily elect to develop multiple 
                scenarios for consideration as part of the development 
                of the metropolitan transportation plan, in accordance 
                with subparagraph (B).
                    ``(B) Recommended components.--A metropolitan 
                planning organization that chooses to develop multiple 
                scenarios under subparagraph (A) shall be encouraged to 
                consider--
                          ``(i) potential regional investment strategies 
                      for the planning horizon;
                          ``(ii) assumed distribution of population and 
                      employment;
                          ``(iii) a scenario that, to the maximum extent 
                      practicable, maintains baseline conditions for the 
                      performance measures identified in subsection 
                      (h)(2);
                          ``(iv) a scenario that improves the baseline 
                      conditions for as many of the performance measures 
                      identified in subsection (h)(2) as possible;
                          ``(v) revenue constrained scenarios based on 
                      the total revenues expected to be available over 
                      the forecast period of the plan; and
                          ``(vi) estimated costs and potential revenues 
                      available to support each scenario.
                    ``(C) Metrics.--In addition to the performance 
                measures identified in section 150(c), metropolitan 
                planning organizations may evaluate scenarios developed 
                under this paragraph using locally-developed measures.
            ``(5) Consultation.--
                    ``(A) In general.--In each metropolitan area, the 
                metropolitan planning organization shall consult, as 
                appropriate, with State and local agencies responsible 
                for land use management, natural resources, 
                environmental protection, conservation, and historic 
                preservation concerning the development of a long-range 
                transportation plan.
                    ``(B) Issues.--The consultation shall involve, as 
                appropriate--
                          ``(i) comparison of transportation plans with 
                      State conservation plans or maps, if available; or
                          ``(ii) comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(6) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall provide citizens, affected public 
                agencies, representatives of public transportation 
                employees, freight shippers, providers of freight 
                transportation services, private providers of 
                transportation, representatives of users of public 
                transportation, representatives of users of pedestrian 
                walkways and bicycle transportation facilities, 
                representatives of the disabled, and other interested 
                parties

[[Page 126 STAT. 509]]

                with a reasonable opportunity to comment on the 
                transportation plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                          ``(i) shall be developed in consultation with 
                      all interested parties; and
                          ``(ii) shall provide that all interested 
                      parties have reasonable opportunities to comment 
                      on the contents of the transportation plan.
                    ``(C) Methods.--In carrying out subparagraph (A), 
                the metropolitan planning organization shall, to the 
                maximum extent practicable--
                          ``(i) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(ii) employ visualization techniques to 
                      describe plans; and
                          ``(iii) <<NOTE: Public information.>> make 
                      public information available in electronically 
                      accessible format and means, such as the World 
                      Wide Web, as appropriate to afford reasonable 
                      opportunity for consideration of public 
                      information under subparagraph (A).
            ``(7) <<NOTE: Public information.>> Publication.--A 
        transportation plan involving Federal participation shall be 
        published or otherwise made readily available by the 
        metropolitan planning organization for public review, including 
        (to the maximum extent practicable) in electronically accessible 
        formats and means, such as the World Wide Web, approved by the 
        metropolitan planning organization and submitted for information 
        purposes to the Governor at such times and in such manner as the 
        Secretary shall establish.
            ``(8) Selection of projects from illustrative list.--
        Notwithstanding paragraph (2)(C), a State or metropolitan 
        planning organization shall not be required to select any 
        project from the illustrative list of additional projects 
        included in the financial plan under paragraph (2)(C).

    ``(j) Metropolitan TIP.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the State and 
                any affected public transportation operator, the 
                metropolitan planning organization designated for a 
                metropolitan area shall develop a TIP for the 
                metropolitan planning area that--
                          ``(i) contains projects consistent with the 
                      current metropolitan transportation plan;
                          ``(ii) reflects the investment priorities 
                      established in the current metropolitan 
                      transportation plan; and
                          ``(iii) once implemented, is designed to make 
                      progress toward achieving the performance targets 
                      established under subsection (h)(2).
                    ``(B) Opportunity for comment.--In developing the 
                TIP, the metropolitan planning organization, in 
                cooperation with the State and any affected public 
                transportation operator, shall provide an opportunity 
                for participation by interested parties in the 
                development of the program, in accordance with 
                subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose of 
                developing the TIP, the metropolitan planning 
                organization, public transportation agency, and State 
                shall cooperatively

[[Page 126 STAT. 510]]

                develop estimates of funds that are reasonably expected 
                to be available to support program implementation.
                    ``(D) Updating and approval.--The TIP shall be--
                          ``(i) updated at least once every 4 years; and
                          ``(ii) approved by the metropolitan planning 
                      organization and the Governor.
            ``(2) Contents.--
                    ``(A) <<NOTE: Deadline.>> Priority list.--The TIP 
                shall include a priority list of proposed Federally 
                supported projects and strategies to be carried out 
                within each 4-year period after the initial adoption of 
                the TIP.
                    ``(B) Financial plan.--The TIP shall include a 
                financial plan that--
                          ``(i) demonstrates how the TIP can be 
                      implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      available to carry out the program;
                          ``(iii) identifies innovative financing 
                      techniques to finance projects, programs, and 
                      strategies; and
                          ``(iv) may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      approved TIP if reasonable additional resources 
                      beyond those identified in the financial plan were 
                      available.
                    ``(C) Descriptions.--Each project in the TIP shall 
                include sufficient descriptive material (such as type of 
                work, termini, length, and other similar factors) to 
                identify the project or phase of the project.
                    ``(D) Performance target achievement.--The 
                transportation improvement program shall include, to the 
                maximum extent practicable, a description of the 
                anticipated effect of the transportation improvement 
                program toward achieving the performance targets 
                established in the metropolitan transportation plan, 
                linking investment priorities to those performance 
                targets.
            ``(3) Included projects.--
                    ``(A) Projects under this title and chapter 53 of 
                title 49.--A TIP developed under this subsection for a 
                metropolitan area shall include the projects within the 
                area that are proposed for funding under chapter 1 of 
                this title and chapter 53 of title 49.
                    ``(B) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 shall be identified 
                      individually in the transportation improvement 
                      program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 that are not determined to 
                      be regionally significant shall be grouped in 1 
                      line item or identified individually in the 
                      transportation improvement program.
                    ``(C) Consistency with long-range transportation 
                plan.--Each project shall be consistent with the long-
                range transportation plan developed under subsection (i) 
                for the area.
                    ``(D) Requirement of anticipated full funding.--The 
                program shall include a project, or an identified phase

[[Page 126 STAT. 511]]

                of a project, only if full funding can reasonably be 
                anticipated to be available for the project or the 
                identified phase within the time period contemplated for 
                completion of the project or the identified phase.
            ``(4) Notice and comment.--Before approving a TIP, a 
        metropolitan planning organization, in cooperation with the 
        State and any affected public transportation operator, shall 
        provide an opportunity for participation by interested parties 
        in the development of the program, in accordance with subsection 
        (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise provided in 
                subsection (k)(4) and in addition to the TIP development 
                required under paragraph (1), the selection of Federally 
                funded projects in metropolitan areas shall be carried 
                out, from the approved TIP--
                          ``(i) by--
                                    ``(I) in the case of projects under 
                                this title, the State; and
                                    ``(II) in the case of projects under 
                                chapter 53 of title 49, the designated 
                                recipients of public transportation 
                                funding; and
                          ``(ii) in cooperation with the metropolitan 
                      planning organization.
                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, action by 
                the Secretary shall not be required to advance a project 
                included in the approved TIP in place of another project 
                in the program.
            ``(6) Selection of projects from illustrative list.--
                    ``(A) No required selection.--Notwithstanding 
                paragraph (2)(B)(iv), a State or metropolitan planning 
                organization shall not be required to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--Action by 
                the Secretary shall be required for a State or 
                metropolitan planning organization to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv) for inclusion in an approved TIP.
            ``(7) Publication.--
                    ``(A) Publication of tips.--A TIP involving Federal 
                participation shall be published or otherwise made 
                readily available by the metropolitan planning 
                organization for public review.
                    ``(B) Publication of annual listings of projects.--
                          ``(i) In general.--An annual listing of 
                      projects, including investments in pedestrian 
                      walkways and bicycle transportation facilities, 
                      for which Federal funds have been obligated in the 
                      preceding year shall be published or otherwise 
                      made available by the cooperative effort of the 
                      State, transit operator, and metropolitan planning 
                      organization for public review.
                          ``(ii) Requirement.--The listing shall be 
                      consistent with the categories identified in the 
                      TIP.

    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--

[[Page 126 STAT. 512]]

                    ``(A) Required identification.--The Secretary shall 
                identify as a transportation management area each 
                urbanized area (as defined by the Bureau of the Census) 
                with a population of over 200,000 individuals.
                    ``(B) Designations on request.--The Secretary shall 
                designate any additional area as a transportation 
                management area on the request of the Governor and the 
                metropolitan planning organization designated for the 
                area.
            ``(2) Transportation plans.--In a transportation management 
        area, transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried out by the 
        metropolitan planning organization in cooperation with the State 
        and public transportation operators.
            ``(3) Congestion management process.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section shall 
                address congestion management through a process that 
                provides for effective management and operation, based 
                on a cooperatively developed and implemented 
                metropolitan-wide strategy, of new and existing 
                transportation facilities eligible for funding under 
                this title and chapter 53 of title 49 through the use of 
                travel demand reduction and operational management 
                strategies.
                    ``(B) <<NOTE: Deadline.>> Schedule.--The Secretary 
                shall establish an appropriate phase-in schedule for 
                compliance with the requirements of this section but no 
                sooner than 1 year after the identification of a 
                transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All Federally funded projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                under this title (excluding projects carried out on the 
                National Highway System) or under chapter 53 of title 49 
                shall be selected for implementation from the approved 
                TIP by the metropolitan planning organization designated 
                for the area in consultation with the State and any 
                affected public transportation operator.
                    ``(B) National highway system projects.--Projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                on the National Highway System shall be selected for 
                implementation from the approved TIP by the State in 
                cooperation with the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) ensure that the metropolitan planning 
                      process of a metropolitan planning organization 
                      serving a transportation management area is being 
                      carried out in accordance with applicable 
                      provisions of Federal law; and
                          ``(ii) subject to subparagraph (B), certify, 
                      not less often than once every 4 years, that the 
                      requirements of this paragraph are met with 
                      respect to the metropolitan planning process.

[[Page 126 STAT. 513]]

                    ``(B) Requirements for certification.--The Secretary 
                may make the certification under subparagraph (A) if--
                          ``(i) the transportation planning process 
                      complies with the requirements of this section and 
                      other applicable requirements of Federal law; and
                          ``(ii) there is a TIP for the metropolitan 
                      planning area that has been approved by the 
                      metropolitan planning organization and the 
                      Governor.
                    ``(C) Effect of failure to certify.--
                          ``(i) Withholding of project funds.--If a 
                      metropolitan planning process of a metropolitan 
                      planning organization serving a transportation 
                      management area is not certified, the Secretary 
                      may withhold up to 20 percent of the funds 
                      attributable to the metropolitan planning area of 
                      the metropolitan planning organization for 
                      projects funded under this title and chapter 53 of 
                      title 49.
                          ``(ii) Restoration of withheld funds.--The 
                      withheld funds shall be restored to the 
                      metropolitan planning area at such time as the 
                      metropolitan planning process is certified by the 
                      Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this paragraph, the 
                Secretary shall provide for public involvement 
                appropriate to the metropolitan area under review.

    ``(l) Report on Performance-based Planning Processes.--
            ``(1) In general.--The Secretary shall submit to Congress a 
        report on the effectiveness of the performance-based planning 
        processes of metropolitan planning organizations under this 
        section, taking into consideration the requirements of this 
        subsection
            ``(2) Report.--Not later than 5 years after the date of 
        enactment of the MAP-21, the Secretary shall submit to Congress 
        a report evaluating--
                    ``(A) the overall effectiveness of performance-based 
                planning as a tool for guiding transportation 
                investments;
                    ``(B) the effectiveness of the performance-based 
                planning process of each metropolitan planning 
                organization under this section;
                    ``(C) the extent to which metropolitan planning 
                organizations have achieved, or are currently making 
                substantial progress toward achieving, the performance 
                targets specified under this section and whether 
                metropolitan planning organizations are developing 
                meaningful performance targets; and
                    ``(D) the technical capacity of metropolitan 
                planning organizations that operate within a 
                metropolitan planning area of less than 200,000 and 
                their ability to carry out the requirements of this 
                section.
            ``(3) <<NOTE: Web posting.>> Publication.--The report under 
        paragraph (2) shall be published or otherwise made available in 
        electronically accessible formats and means, including on the 
        Internet.

    ``(m) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the case of 
        a metropolitan area not designated as a transportation 
        management area under this section, the Secretary may provide

[[Page 126 STAT. 514]]

        for the development of an abbreviated transportation plan and 
        TIP for the metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of this 
        section, taking into account the complexity of transportation 
        problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not permit 
        abbreviated plans or TIPs for a metropolitan area that is in 
        nonattainment for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).

    ``(n) Additional Requirements for Certain Nonattainment Areas.--
            ``(1) In general.--Notwithstanding any other provisions of 
        this title or chapter 53 of title, for transportation management 
        areas classified as nonattainment for ozone or carbon monoxide 
        pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 
        funds may not be advanced in such area for any highway project 
        that will result in a significant increase in the carrying 
        capacity for single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning area 
        boundaries determined under subsection (e).

    ``(o) Limitation on Statutory Construction.--Nothing in this section 
shall be construed to confer on a metropolitan planning organization the 
authority to impose legal requirements on any transportation facility, 
provider, or project not eligible under this title or chapter 53 of 
title 49.
    ``(p) Funding.--Funds set aside under section 104(f) of this title 
or section 5305(g) of title 49 shall be available to carry out this 
section.
    ``(q) Continuation of Current Review Practice.--Since plans and TIPs 
described in this section are subject to a reasonable opportunity for 
public comment, since individual projects included in plans and TIPs are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning plans and TIPs described in this section have not been 
reviewed under that Act as of January 1, 1997, any decision by the 
Secretary concerning a plan or TIP described in this section shall not 
be considered to be a Federal action subject to review under that 
Act.''.
    (b) <<NOTE: Evaluation.>> Study on Metropolitan Planning Scenario 
Development.--
            (1) In general.--The Secretary shall evaluate the costs and 
        benefits associated with metropolitan planning organizations 
        developing multiple scenarios for consideration as a part of the 
        development of their metropolitan transportation plan.
            (2) Inclusions.--The evaluation shall include an analysis of 
        the technical and financial capacity of the metropolitan 
        planning organization needed to develop scenarios described in 
        paragraph (1).
SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

    (a) In General.--Section 135 of title 23, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 515]]

``Sec. 135. Statewide and nonmetropolitan transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--Subject to section 
        134, to accomplish the objectives stated in section 134(a), each 
        State shall develop a statewide transportation plan and a 
        statewide transportation improvement program for all areas of 
        the State.
            ``(2) Contents.--The statewide transportation plan and the 
        transportation improvement program developed for each State 
        shall provide for the development and integrated management and 
        operation of transportation systems and facilities (including 
        accessible pedestrian walkways and bicycle transportation 
        facilities) that will function as an intermodal transportation 
        system for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for developing 
        the statewide plan and the transportation improvement program 
        shall provide for consideration of all modes of transportation 
        and the policies stated in section 134(a) and shall be 
        continuing, cooperative, and comprehensive to the degree 
        appropriate, based on the complexity of the transportation 
        problems to be addressed.

    ``(b) Coordination With Metropolitan Planning; State Implementation 
Plan.--A State shall--
            ``(1) coordinate planning carried out under this section 
        with the transportation planning activities carried out under 
        section 134 for metropolitan areas of the State and with 
        statewide trade and economic development planning activities and 
        related multistate planning efforts; and
            ``(2) develop the transportation portion of the State 
        implementation plan as required by the Clean Air Act (42 U.S.C. 
        7401 et seq.).

    ``(c) Interstate Agreements.--
            ``(1) In general.--Two or more States may enter into 
        agreements or compacts, not in conflict with any law of the 
        United States, for cooperative efforts and mutual assistance in 
        support of activities authorized under this section related to 
        interstate areas and localities in the States and establishing 
        authorities the States consider desirable for making the 
        agreements and compacts effective.
            ``(2) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a statewide 
        transportation planning process that provides for consideration 
        and implementation of projects, strategies, and services that 
        will--
                    ``(A) support the economic vitality of the United 
                States, the States, nonmetropolitan areas, and 
                metropolitan areas, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;

[[Page 126 STAT. 516]]

                    ``(D) increase the accessibility and mobility of 
                people and freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes 
                throughout the State, for people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The statewide transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of this title and in section 5301(c) 
                of title 49.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each State shall 
                                establish performance targets that 
                                address the performance measures 
                                described in section 150(c), where 
                                applicable, to use in tracking progress 
                                towards attainment of critical outcomes 
                                for the State.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a State shall be 
                                coordinated with the relevant 
                                metropolitan planning organizations to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--In urbanized areas not represented by a 
                      metropolitan planning organization, selection of 
                      performance targets by a State shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d) of 
                      title 49.
                    ``(C) Integration of other performance-based 
                plans.--A State shall integrate into the statewide 
                transportation planning process, directly or by 
                reference, the goals, objectives, performance measures, 
                and targets described in this paragraph, in other State 
                transportation plans and transportation processes, as 
                well as any plans developed pursuant to chapter 53 of 
                title 49 by providers of public transportation in 
                urbanized areas not represented by a metropolitan 
                planning organization required as part of a performance-
                based program.
                    ``(D) Use of performance measures and targets.--The 
                performance measures and targets established under this 
                paragraph shall be considered by a State when developing 
                policies, programs, and investment priorities reflected 
                in the statewide transportation plan and statewide 
                transportation improvement program.

[[Page 126 STAT. 517]]

            ``(3) Failure to consider factors.--The failure to take into 
        consideration the factors specified in paragraphs (1) and (2) 
        shall not be subject to review by any court under this title, 
        chapter 53 of title 49, subchapter II of chapter 5 of title 5, 
        or chapter 7 of title 5 in any matter affecting a statewide 
        transportation plan, a statewide transportation improvement 
        program, a project or strategy, or the certification of a 
        planning process.

    ``(e) Additional Requirements.--In carrying out planning under this 
section, each State shall, at a minimum--
            ``(1) with respect to nonmetropolitan areas, cooperate with 
        affected local officials with responsibility for transportation 
        or, if applicable, through regional transportation planning 
        organizations described in subsection (m);
            ``(2) consider the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction over 
        land within the boundaries of the State; and
            ``(3) consider coordination of transportation plans, the 
        transportation improvement program, and planning activities with 
        related planning activities being carried out outside of 
        metropolitan planning areas and between States.

    ``(f) Long-range Statewide Transportation Plan.--
            ``(1) Development.--Each State shall develop a long-range 
        statewide transportation plan, with a minimum 20-year forecast 
        period for all areas of the State, that provides for the 
        development and implementation of the intermodal transportation 
        system of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation with the 
                metropolitan planning organization designated for the 
                metropolitan area under section 134.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to 
                      nonmetropolitan areas, the statewide 
                      transportation plan shall be developed in 
                      cooperation with affected nonmetropolitan 
                      officials with responsibility for transportation 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the consultation process in 
                      each State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the statewide transportation plan 
                shall be developed in consultation with the tribal 
                government and the Secretary of the Interior.
                    ``(D) Consultation, comparison, and consideration.--
                          ``(i) In general.--The long-range 
                      transportation plan shall be developed, as 
                      appropriate, in consultation with State, tribal, 
                      and local agencies responsible for land use 
                      management, natural resources, environmental 
                      protection, conservation, and historic 
                      preservation.

[[Page 126 STAT. 518]]

                          ``(ii) Comparison and consideration.--
                      Consultation under clause (i) shall involve 
                      comparison of transportation plans to State and 
                      tribal conservation plans or maps, if available, 
                      and comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the statewide 
                transportation plan, the State shall provide to--
                          ``(i) nonmetropolitan local elected officials 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m), an opportunity to participate in accordance 
                      with subparagraph (B)(i); and
                          ``(ii) citizens, affected public agencies, 
                      representatives of public transportation 
                      employees, freight shippers, private providers of 
                      transportation, representatives of users of public 
                      transportation, representatives of users of 
                      pedestrian walkways and bicycle transportation 
                      facilities, representatives of the disabled, 
                      providers of freight transportation services, and 
                      other interested parties a reasonable opportunity 
                      to comment on the proposed plan.
                    ``(B) Methods.--In carrying out subparagraph (A), 
                the State shall, to the maximum extent practicable--
                          ``(i) develop and document a consultative 
                      process to carry out subparagraph (A)(i) that is 
                      separate and discrete from the public involvement 
                      process developed under clause (ii);
                          ``(ii) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(iii) employ visualization techniques to 
                      describe plans; and
                          ``(iv) make public information available in 
                      electronically accessible format and means, such 
                      as the World Wide Web, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range transportation plan 
                shall include a discussion of potential environmental 
                mitigation activities and potential areas to carry out 
                these activities, including activities that may have the 
                greatest potential to restore and maintain the 
                environmental functions affected by the plan.
                    ``(B) Consultation.--The discussion shall be 
                developed in consultation with Federal, State, and 
                tribal wildlife, land management, and regulatory 
                agencies.
            ``(5) Financial plan.--The statewide transportation plan may 
        include--
                    ``(A) a financial plan that--
                          ``(i) demonstrates how the adopted statewide 
                      transportation plan can be implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      made available to carry out the plan; and

[[Page 126 STAT. 519]]

                          ``(iii) recommends any additional financing 
                      strategies for needed projects and programs; and
                    ``(B) for illustrative purposes, additional projects 
                that would be included in the adopted statewide 
                transportation plan if reasonable additional resources 
                beyond those identified in the financial plan were 
                available.
            ``(6) Selection of projects from illustrative list.--A State 
        shall not be required to select any project from the 
        illustrative list of additional projects included in the 
        financial plan described in paragraph (5).
            ``(7) Performance-based approach.--The statewide 
        transportation plan should include--
                    ``(A) a description of the performance measures and 
                performance targets used in assessing the performance of 
                the transportation system in accordance with subsection 
                (d)(2); and
                    ``(B) a system performance report and subsequent 
                updates evaluating the condition and performance of the 
                transportation system with respect to the performance 
                targets described in subsection (d)(2), including 
                progress achieved by the metropolitan planning 
                organization in meeting the performance targets in 
                comparison with system performance recorded in previous 
                reports;
            ``(8) Existing system.--The statewide transportation plan 
        should include capital, operations and management strategies, 
        investments, procedures, and other measures to ensure the 
        preservation and most efficient use of the existing 
        transportation system.
            ``(9) Publication of long-range transportation plans.--Each 
        long-range transportation plan prepared by a State shall be 
        published or otherwise made available, including (to the maximum 
        extent practicable) in electronically accessible formats and 
        means, such as the World Wide Web.

    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--
                    ``(A) In general.--Each State shall develop a 
                statewide transportation improvement program for all 
                areas of the State.
                    ``(B) <<NOTE: Time period. Deadline.>> Duration and 
                updating of program.--Each program developed under 
                subparagraph (A) shall cover a period of 4 years and 
                shall be updated every 4 years or more frequently if the 
                Governor of the State elects to update more frequently.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--With respect to each 
                metropolitan area in the State, the program shall be 
                developed in cooperation with the metropolitan planning 
                organization designated for the metropolitan area under 
                section 134.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to each 
                      nonmetropolitan area in the State, the program 
                      shall be developed in consultation with affected 
                      nonmetropolitan local officials with 
                      responsibility for transportation or, if 
                      applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m).

[[Page 126 STAT. 520]]

                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the specific consultation 
                      process in the State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the program shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the program, the State shall provide citizens, affected public 
        agencies, representatives of public transportation employees, 
        freight shippers, private providers of transportation, providers 
        of freight transportation services, representatives of users of 
        public transportation, representatives of users of pedestrian 
        walkways and bicycle transportation facilities, representatives 
        of the disabled, and other interested parties with a reasonable 
        opportunity to comment on the proposed program.
            ``(4) Performance target achievement.--A statewide 
        transportation improvement program shall include, to the maximum 
        extent practicable, a discussion of the anticipated effect of 
        the statewide transportation improvement program toward 
        achieving the performance targets established in the statewide 
        transportation plan, linking investment priorities to those 
        performance targets.
            ``(5) Included projects.--
                    ``(A) In general.--A transportation improvement 
                program developed under this subsection for a State 
                shall include Federally supported surface transportation 
                expenditures within the boundaries of the State.
                    ``(B) Listing of projects.--
                          ``(i) In general.--An annual listing of 
                      projects for which funds have been obligated for 
                      the preceding year in each metropolitan planning 
                      area shall be published or otherwise made 
                      available by the cooperative effort of the State, 
                      transit operator, and the metropolitan planning 
                      organization for public review.
                          ``(ii) Funding categories.--The listing 
                      described in clause (i) shall be consistent with 
                      the funding categories identified in each 
                      metropolitan transportation improvement program.
                    ``(C) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 shall be identified 
                      individually in the transportation improvement 
                      program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 that are not determined to 
                      be regionally significant shall be grouped in 1 
                      line item or identified individually in the 
                      transportation improvement program.
                    ``(D) Consistency with statewide transportation 
                plan.--Each project shall be--
                          ``(i) consistent with the statewide 
                      transportation plan developed under this section 
                      for the State;
                          ``(ii) identical to the project or phase of 
                      the project as described in an approved 
                      metropolitan transportation plan; and

[[Page 126 STAT. 521]]

                          ``(iii) in conformance with the applicable 
                      State air quality implementation plan developed 
                      under the Clean Air Act (42 U.S.C. 7401 et seq.), 
                      if the project is carried out in an area 
                      designated as a nonattainment area for ozone, 
                      particulate matter, or carbon monoxide under part 
                      D of title I of that Act (42 U.S.C. 7501 et seq.).
                    ``(E) Requirement of anticipated full funding.--The 
                transportation improvement program shall include a 
                project, or an identified phase of a project, only if 
                full funding can reasonably be anticipated to be 
                available for the project within the time period 
                contemplated for completion of the project.
                    ``(F) Financial plan.--
                          ``(i) In general.--The transportation 
                      improvement program may include a financial plan 
                      that demonstrates how the approved transportation 
                      improvement program can be implemented, indicates 
                      resources from public and private sources that are 
                      reasonably expected to be made available to carry 
                      out the transportation improvement program, and 
                      recommends any additional financing strategies for 
                      needed projects and programs.
                          ``(ii) Additional projects.--The financial 
                      plan may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      adopted transportation plan if reasonable 
                      additional resources beyond those identified in 
                      the financial plan were available.
                    ``(G) Selection of projects from illustrative 
                list.--
                          ``(i) No required selection.--Notwithstanding 
                      subparagraph (F), a State shall not be required to 
                      select any project from the illustrative list of 
                      additional projects included in the financial plan 
                      under subparagraph (F).
                          ``(ii) Required action by the secretary.--
                      Action by the Secretary shall be required for a 
                      State to select any project from the illustrative 
                      list of additional projects included in the 
                      financial plan under subparagraph (F) for 
                      inclusion in an approved transportation 
                      improvement program.
                    ``(H) Priorities.--The transportation improvement 
                program shall reflect the priorities for programming and 
                expenditures of funds, including transportation 
                enhancement activities, required by this title and 
                chapter 53 of title 49.
            ``(6) Project selection for areas of less than 50,000 
        population.--
                    ``(A) In general.--Projects carried out in areas 
                with populations of less than 50,000 individuals shall 
                be selected, from the approved transportation 
                improvement program (excluding projects carried out on 
                the National Highway System and projects carried out 
                under the bridge program or the Interstate maintenance 
                program under this title or under sections 5310 and 5311 
                of title 49), by the State in cooperation with the 
                affected nonmetropolitan local

[[Page 126 STAT. 522]]

                officials with responsibility for transportation or, if 
                applicable, through regional transportation planning 
                organizations described in subsection (m).
                    ``(B) Other projects.--Projects carried out in areas 
                with populations of less than 50,000 individuals on the 
                National Highway System or under the bridge program or 
                the Interstate maintenance program under this title or 
                under sections 5310, 5311, 5316, and 5317 of title 49 
                shall be selected, from the approved statewide 
                transportation improvement program, by the State in 
                consultation with the affected nonmetropolitan local 
                officials with responsibility for transportation.
            ``(7) <<NOTE: Time period.>> Transportation improvement 
        program approval.--Every 4 years, a transportation improvement 
        program developed under this subsection shall be reviewed and 
        approved by the Secretary if based on a current planning 
        finding.
            ``(8) Planning finding.--A finding shall be made by the 
        Secretary at least every 4 years that the transportation 
        planning process through which statewide transportation plans 
        and programs are developed is consistent with this section and 
        section 134.
            ``(9) Modifications to project priority.--Notwithstanding 
        any other provision of law, action by the Secretary shall not be 
        required to advance a project included in the approved 
        transportation improvement program in place of another project 
        in the program.

    ``(h) Performance-based Planning Processes Evaluation.--
            ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall 
        establish criteria to evaluate the effectiveness of the 
        performance-based planning processes of States, taking into 
        consideration the following:
                    ``(A) The extent to which the State is making 
                progress toward achieving, the performance targets 
                described in subsection (d)(2), taking into account 
                whether the State developed appropriate performance 
                targets.
                    ``(B) The extent to which the State has made 
                transportation investments that are efficient and cost-
                effective.
                    ``(C) The extent to which the State--
                          ``(i) has developed an investment process that 
                      relies on public input and awareness to ensure 
                      that investments are transparent and accountable; 
                      and
                          ``(ii) provides reports allowing the public to 
                      access the information being collected in a format 
                      that allows the public to meaningfully assess the 
                      performance of the State.
            ``(2) Report.--
                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the MAP-21, the Secretary shall 
                submit to Congress a report evaluating--
                          ``(i) the overall effectiveness of 
                      performance-based planning as a tool for guiding 
                      transportation investments; and
                          ``(ii) the effectiveness of the performance-
                      based planning process of each State.
                    ``(B) <<NOTE: Web posting.>> Publication.--The 
                report under subparagraph (A) shall be published or 
                otherwise made available in electronically accessible 
                formats and means, including on the Internet.

[[Page 126 STAT. 523]]

    ``(i) Funding.--Funds apportioned under section 104(b)(5) of this 
title and set aside under section 5305(g) of title 49 shall be available 
to carry out this section.
    ``(j) Treatment of Certain State Laws as Congestion Management 
Processes.--For purposes of this section and section 134, and sections 
5303 and 5304 of title 49, State laws, rules, or regulations pertaining 
to congestion management systems or programs may constitute the 
congestion management process under this section and section 134, and 
sections 5303 and 5304 of title 49, if the Secretary finds that the 
State laws, rules, or regulations are consistent with, and fulfill the 
intent of, the purposes of this section and section 134 and sections 
5303 and 5304 of title 49, as appropriate.
    ``(k) Continuation of Current Review Practice.--Since the statewide 
transportation plan and the transportation improvement program described 
in this section are subject to a reasonable opportunity for public 
comment, since individual projects included in the statewide 
transportation plans and the transportation improvement program are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning statewide transportation plans or the transportation 
improvement program described in this section have not been reviewed 
under that Act as of January 1, 1997, any decision by the Secretary 
concerning a metropolitan or statewide transportation plan or the 
transportation improvement program described in this section shall not 
be considered to be a Federal action subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(l) <<NOTE: Guidance.>> Schedule for Implementation.--The 
Secretary shall issue guidance on a schedule for implementation of the 
changes made by this section, taking into consideration the established 
planning update cycle for States. The Secretary shall not require a 
State to deviate from its established planning update cycle to implement 
changes made by this section. <<NOTE: Deadline.>> States shall reflect 
changes made to their transportation plan or transportation improvement 
program updates not later than 2 years after the date of issuance of 
guidance by the Secretary under this subsection.

    ``(m) Designation of Regional Transportation Planning 
Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a State may establish and 
        designate regional transportation planning organizations to 
        enhance the planning, coordination, and implementation of 
        statewide strategic long-range transportation plans and 
        transportation improvement programs, with an emphasis on 
        addressing the needs of nonmetropolitan areas of the State.
            ``(2) Structure.--A regional transportation planning 
        organization shall be established as a multijurisdictional 
        organization of nonmetropolitan local officials or their 
        designees who volunteer for such organization and 
        representatives of local transportation systems who volunteer 
        for such organization.
            ``(3) Requirements.--A regional transportation planning 
        organization shall establish, at a minimum--
                    ``(A) a policy committee, the majority of which 
                shall consist of nonmetropolitan local officials, or 
                their designees, and, as appropriate, additional 
                representatives from the

[[Page 126 STAT. 524]]

                State, private business, transportation service 
                providers, economic development practitioners, and the 
                public in the region; and
                    ``(B) a fiscal and administrative agent, such as an 
                existing regional planning and development organization, 
                to provide professional planning, management, and 
                administrative support.
            ``(4) Duties.--The duties of a regional transportation 
        planning organization shall include--
                    ``(A) developing and maintaining, in cooperation 
                with the State, regional long-range multimodal 
                transportation plans;
                    ``(B) developing a regional transportation 
                improvement program for consideration by the State;
                    ``(C) fostering the coordination of local planning, 
                land use, and economic development plans with State, 
                regional, and local transportation plans and programs;
                    ``(D) providing technical assistance to local 
                officials;
                    ``(E) participating in national, multistate, and 
                State policy and planning development processes to 
                ensure the regional and local input of nonmetropolitan 
                areas;
                    ``(F) providing a forum for public participation in 
                the statewide and regional transportation planning 
                processes;
                    ``(G) considering and sharing plans and programs 
                with neighboring regional transportation planning 
                organizations, metropolitan planning organizations, and, 
                where appropriate, tribal organizations; and
                    ``(H) conducting other duties, as necessary, to 
                support and enhance the statewide planning process under 
                subsection (d).
            ``(5) States without regional transportation planning 
        organizations.--If a State chooses not to establish or designate 
        a regional transportation planning organization, the State shall 
        consult with affected nonmetropolitan local officials to 
        determine projects that may be of regional significance.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
135 and inserting the following:

``135. Statewide and nonmetropolitan transportation planning.''.

SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT MEASURES.

    (a) In General.--Section 150 of title 23, United States Code, is 
amended to read as follows:
``Sec. 150. National goals and performance management measures

    ``(a) Declaration of Policy.--Performance management will transform 
the Federal-aid highway program and provide a means to the most 
efficient investment of Federal transportation funds by refocusing on 
national transportation goals, increasing the accountability and 
transparency of the Federal-aid highway program, and improving project 
decisionmaking through performance-based planning and programming.
    ``(b) National Goals.--It is in the interest of the United States to 
focus the Federal-aid highway program on the following national goals:

[[Page 126 STAT. 525]]

            ``(1) Safety.--To achieve a significant reduction in traffic 
        fatalities and serious injuries on all public roads.
            ``(2) Infrastructure condition.--To maintain the highway 
        infrastructure asset system in a state of good repair.
            ``(3) Congestion reduction.--To achieve a significant 
        reduction in congestion on the National Highway System.
            ``(4) System reliability.--To improve the efficiency of the 
        surface transportation system.
            ``(5) Freight movement and economic vitality.--To improve 
        the national freight network, strengthen the ability of rural 
        communities to access national and international trade markets, 
        and support regional economic development.
            ``(6) Environmental sustainability.--To enhance the 
        performance of the transportation system while protecting and 
        enhancing the natural environment.
            ``(7) Reduced project delivery delays.--To reduce project 
        costs, promote jobs and the economy, and expedite the movement 
        of people and goods by accelerating project completion through 
        eliminating delays in the project development and delivery 
        process, including reducing regulatory burdens and improving 
        agencies' work practices.

    ``(c) Establishment of Performance Measures.--
            ``(1) <<NOTE: Deadline. Regulations.>> In general.--Not 
        later than 18 months after the date of enactment of the MAP-21, 
        the Secretary, in consultation with State departments of 
        transportation, metropolitan planning organizations, and other 
        stakeholders, shall promulgate a rulemaking that establishes 
        performance measures and standards.
            ``(2) Administration.--In carrying out paragraph (1), the 
        Secretary shall--
                    ``(A) provide States, metropolitan planning 
                organizations, and other stakeholders not less than 90 
                days to comment on any regulation proposed by the 
                Secretary under that paragraph;
                    ``(B) take into consideration any comments relating 
                to a proposed regulation received during that comment 
                period; and
                    ``(C) limit performance measures only to those 
                described in this subsection.
            ``(3) National highway performance program.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                the purpose of carrying out section 119, the Secretary 
                shall establish--
                          ``(i) <<NOTE: Standards.>> minimum standards 
                      for States to use in developing and operating 
                      bridge and pavement management systems;
                          ``(ii) measures for States to use to assess--
                                    ``(I) the condition of pavements on 
                                the Interstate system;
                                    ``(II) the condition of pavements on 
                                the National Highway System (excluding 
                                the Interstate);
                                    ``(III) the condition of bridges on 
                                the National Highway System;
                                    ``(IV) the performance of the 
                                Interstate System; and

[[Page 126 STAT. 526]]

                                    ``(V) the performance of the 
                                National Highway System (excluding the 
                                Interstate System);
                          ``(iii) minimum levels for the condition of 
                      pavement on the Interstate System, only for the 
                      purposes of carrying out section 119(f)(1); and
                          ``(iv) the data elements that are necessary to 
                      collect and maintain standardized data to carry 
                      out a performance-based approach.
                    ``(B) Regions.--In establishing minimum condition 
                levels under subparagraph (A)(iii), if the Secretary 
                determines that various geographic regions of the United 
                States experience disparate factors contributing to the 
                condition of pavement on the Interstate System in those 
                regions, the Secretary may establish different minimum 
                levels for each region;
            ``(4) Highway safety improvement program.--For the purpose 
        of carrying out section 148, the Secretary shall establish 
        measures for States to use to assess--
                    ``(A) serious injuries and fatalities per vehicle 
                mile traveled; and
                    ``(B) the number of serious injuries and fatalities.
            ``(5) Congestion mitigation and air quality program.--For 
        the purpose of carrying out section 149, the Secretary shall 
        establish measures for States to use to assess--
                    ``(A) traffic congestion; and
                    ``(B) on-road mobile source emissions.
            ``(6) National freight movement.--The Secretary shall 
        establish measures for States to use to assess freight movement 
        on the Interstate System.

    ``(d) <<NOTE: Deadline.>> Establishment of Performance Targets.--
            ``(1) In general.--Not later than 1 year after the Secretary 
        has promulgated the final rulemaking under subsection (c), each 
        State shall set performance targets that reflect the measures 
        identified in paragraphs (3), (4), (5), and (6) of subsection 
        (c).
            ``(2) Different approaches for urban and rural areas.--In 
        the development and implementation of any performance target, a 
        State may, as appropriate, provide for different performance 
        targets for urbanized and rural areas.

    ``(e) Reporting on Performance Targets.--Not later than 4 years 
after the date of enactment of the MAP-21 and biennially thereafter, a 
State shall submit to the Secretary a report that describes--
            ``(1) the condition and performance of the National Highway 
        System in the State;
            ``(2) the effectiveness of the investment strategy document 
        in the State asset management plan for the National Highway 
        System;
            ``(3) progress in achieving performance targets identified 
        under subsection (d); and
            ``(4) the ways in which the State is addressing congestion 
        at freight bottlenecks, including those identified in the 
        National Freight Strategic Plan, within the State.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
150 and inserting the following:

``150. National goals and performance management measures.''.

[[Page 126 STAT. 527]]

              Subtitle C--Acceleration of Project Delivery

SEC. 1301. <<NOTE: 23 USC 101 note.>> DECLARATION OF POLICY AND 
                          PROJECT DELIVERY INITIATIVE.

    (a) In General.--It is the policy of the United States that--
            (1) it is in the national interest for the Department, State 
        departments of transportation, transit agencies, and all other 
        recipients of Federal transportation funds--
                    (A) to accelerate project delivery and reduce costs; 
                and
                    (B) to ensure that the planning, design, 
                engineering, construction, and financing of 
                transportation projects is done in an efficient and 
                effective manner, promoting accountability for public 
                investments and encouraging greater private sector 
                involvement in project financing and delivery while 
                enhancing safety and protecting the environment;
            (2) delay in the delivery of transportation projects 
        increases project costs, harms the economy of the United States, 
        and impedes the travel of the people of the United States and 
        the shipment of goods for the conduct of commerce; and
            (3) the Secretary shall identify and promote the deployment 
        of innovation aimed at reducing the time and money required to 
        deliver transportation projects while enhancing safety and 
        protecting the environment.

    (b) Project Delivery Initiative.--
            (1) In general.--To advance the policy described in 
        subsection (a), the Secretary shall carry out a project delivery 
        initiative under this section.
            (2) Purposes.--The purposes of the project delivery 
        initiative shall be--
                    (A) to develop and advance the use of best practices 
                to accelerate project delivery and reduce costs across 
                all modes of transportation and expedite the deployment 
                of technology and innovation;
                    (B) to implement provisions of law designed to 
                accelerate project delivery; and
                    (C) to select eligible projects for applying 
                experimental features to test innovative project 
                delivery techniques.
            (3) Advancing the use of best practices.--
                    (A) In general.--In carrying out the initiative 
                under this section, the Secretary shall identify and 
                advance best practices to reduce delivery time and 
                project costs, from planning through construction, for 
                transportation projects and programs of projects 
                regardless of mode and project size.
                    (B) Administration.--To advance the use of best 
                practices, the Secretary shall--
                          (i) engage interested parties, affected 
                      communities, resource agencies, and other 
                      stakeholders to gather information regarding 
                      opportunities for accelerating project delivery 
                      and reducing costs;
                          (ii) establish a clearinghouse for the 
                      collection, documentation, and advancement of 
                      existing and new innovative approaches and best 
                      practices;

[[Page 126 STAT. 528]]

                          (iii) disseminate information through a 
                      variety of means to transportation stakeholders on 
                      new innovative approaches and best practices; and
                          (iv) provide technical assistance to assist 
                      transportation stakeholders in the use of 
                      flexibility authority to resolve project delays 
                      and accelerate project delivery if feasible.
            (4) Implementation of accelerated project delivery.--The 
        Secretary shall ensure that the provisions of this subtitle 
        designed to accelerate project delivery are fully implemented, 
        including--
                    (A) expanding eligibility of early acquisition of 
                property prior to completion of environmental review 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                    (B) allowing the use of the construction manager or 
                general contractor method of contracting in the Federal-
                aid highway system; and
                    (C) establishing a demonstration program to 
                streamline the relocation process by permitting a lump-
                sum payment for acquisition and relocation if elected by 
                the displaced occupant.

    (c) Expedited Project Delivery.--Section 101(b) of title 23, United 
States Code, is amended by adding at the end the following:
            ``(4) Expedited project delivery.--
                    ``(A) In general.--Congress declares that it is in 
                the national interest to expedite the delivery of 
                surface transportation projects by substantially 
                reducing the average length of the environmental review 
                process.
                    ``(B) Policy of the united states.--Accordingly, it 
                is the policy of the United States that--
                          ``(i) the Secretary shall have the lead role 
                      among Federal agencies in carrying out the 
                      environmental review process for surface 
                      transportation projects;
                          ``(ii) each Federal agency shall cooperate 
                      with the Secretary to expedite the environmental 
                      review process for surface transportation 
                      projects;
                          ``(iii) project sponsors shall not be 
                      prohibited from carrying out preconstruction 
                      project development activities concurrently with 
                      the environmental review process;
                          ``(iv) programmatic approaches shall be used 
                      to reduce the need for project-by-project reviews 
                      and decisions by Federal agencies; and
                          ``(v) the Secretary shall identify 
                      opportunities for project sponsors to assume 
                      responsibilities of the Secretary where such 
                      responsibilities can be assumed in a manner that 
                      protects public health, the environment, and 
                      public participation.''.
SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS.

    (a) Real Property Interests.--Section 108 of title 23, United States 
Code, is amended--
            (1) by striking ``real property'' each place it appears and 
        inserting ``real property interests'';
            (2) by striking ``right-of-way'' each place it appears and 
        inserting ``real property interest''; and

[[Page 126 STAT. 529]]

            (3) by striking ``rights-of-way'' each place it appears and 
        inserting ``real property interests''.

    (b) State-funded Early Acquisition of Real Property Interests.--
Section 108(c) of title 23, United States Code, is amended--
            (1) in the subsection heading, by striking ``Early 
        Acquisition of Rights-of-way'' and inserting ``State-funded 
        Early Acquisition of Real Property Interests'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively;
            (3) in paragraph (2) (as so redesignated)--
                    (A) in the heading, by striking ``General rule'' and 
                inserting ``Eligibility for reimbursement''; and
                    (B) by striking ``Subject to paragraph (2)'' and 
                inserting ``Subject to paragraph (3)'';
            (4) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) In general.--A State may carry out, at the expense of 
        the State, acquisitions of interests in real property for a 
        project before completion of the review process required for the 
        project under the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.) without affecting subsequent approvals 
        required for the project by the State or any Federal agency.''; 
        and
            (5) in paragraph (3) (as so redesignated)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``in paragraph (1)'' and inserting ``in 
                paragraph (2)''; and
                    (B) in subparagraph (G), by striking ``both the 
                Secretary and the Administrator of the Environmental 
                Protection Agency have concurred'' and inserting ``the 
                Secretary has determined''.

    (c) Federally Funded Acquisition of Real Property Interests.--
Section 108 of title 23, United States Code, is amended by adding at the 
end the following:
    ``(d) Federally Funded Early Acquisition of Real Property 
Interests.--
            ``(1) Definition of acquisition of a real property 
        interest.--In this subsection, the term `acquisition of a real 
        property interest' includes the acquisition of--
                    ``(A) any interest in land;
                    ``(B) a contractual right to acquire any interest in 
                land; or
                    ``(C) any other similar action to acquire or 
                preserve rights-of-way for a transportation facility.
            ``(2) Authorization.--The Secretary may authorize the use of 
        funds apportioned to a State under this title for the 
        acquisition of a real property interest by a State.
            ``(3) State certification.--A State requesting Federal 
        funding for an acquisition of a real property interest shall 
        certify in writing, with concurrence by the Secretary, that--
                    ``(A) the State has authority to acquire the real 
                property interest under State law; and
                    ``(B) the acquisition of the real property 
                interest--
                          ``(i) is for a transportation purpose;
                          ``(ii) will not cause any significant adverse 
                      environmental impact;

[[Page 126 STAT. 530]]

                          ``(iii) will not limit the choice of 
                      reasonable alternatives for the project or 
                      otherwise influence the decision of the Secretary 
                      on any approval required for the project;
                          ``(iv) does not prevent the lead agency from 
                      making an impartial decision as to whether to 
                      accept an alternative that is being considered in 
                      the environmental review process;
                          ``(v) is consistent with the State 
                      transportation planning process under section 135;
                          ``(vi) complies with other applicable Federal 
                      laws (including regulations);
                          ``(vii) will be acquired through negotiation, 
                      without the threat of condemnation; and
                          ``(viii) will not result in a reduction or 
                      elimination of benefits or assistance to a 
                      displaced person required by the Uniform 
                      Relocation Assistance and Real Property 
                      Acquisition Policies Act of 1970 (42 U.S.C. 4601 
                      et seq.) and title VI of the Civil Rights Act of 
                      1964 (42 U.S.C. 2000d et seq.).
            ``(4) Environmental compliance.--
                    ``(A) In general.--Before authorizing Federal 
                funding for an acquisition of a real property interest, 
                the Secretary shall complete the review process under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) with respect to the acquisition of the 
                real property interest.
                    ``(B) Independent utility.--The acquisition of a 
                real property interest--
                          ``(i) shall be treated as having independent 
                      utility for purposes of the review process under 
                      the National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.); and
                          ``(ii) shall not limit consideration of 
                      alternatives for future transportation 
                      improvements with respect to the real property 
                      interest.
            ``(5) Programming.--
                    ``(A) In general.--The acquisition of a real 
                property interest for which Federal funding is requested 
                shall be included as a project in an applicable 
                transportation improvement program under sections 134 
                and 135 and sections 5303 and 5304 of title 49.
                    ``(B) Acquisition project.--The acquisition project 
                may consist of the acquisition of a specific parcel, a 
                portion of a transportation corridor, or an entire 
                transportation corridor.
            ``(6) Development.--Real property interests acquired under 
        this subsection may not be developed in anticipation of a 
        project until all required environmental reviews for the project 
        have been completed.
            ``(7) Reimbursement.--If Federal-aid reimbursement is made 
        for real property interests acquired early under this section 
        and the real property interests are not subsequently 
        incorporated into a project eligible for surface transportation 
        funds within the time allowed by subsection (a)(2), the 
        Secretary shall offset the amount reimbursed against funds 
        apportioned to the State.
            ``(8) Other requirements and conditions.--

[[Page 126 STAT. 531]]

                    ``(A) Applicable law.--The acquisition of a real 
                property interest shall be carried out in compliance 
                with all requirements applicable to the acquisition of 
                real property interests for federally funded 
                transportation projects.
                    ``(B) Additional conditions.--The Secretary may 
                establish such other conditions or restrictions on 
                acquisitions under this subsection as the Secretary 
                determines to be appropriate.''.
SEC. 1303. LETTING OF CONTRACTS.

    (a) Efficiencies in Contracting.--Section 112(b) of title 23, United 
States Code, is amended by adding at the end the following:
            ``(4) Method of contracting.--
                    ``(A) In general.--
                          ``(i) 2-phase contract.--A contracting agency 
                      may award a 2-phase contract to a construction 
                      manager or general contractor for preconstruction 
                      and construction services.
                          ``(ii) Preconstruction services phase.--In the 
                      preconstruction services phase of a contract under 
                      this paragraph, the contractor shall provide the 
                      contracting agency with advice for scheduling, 
                      work sequencing, cost engineering, 
                      constructability, cost estimating, and risk 
                      identification.
                          ``(iii) Agreement.--Prior to the start of the 
                      construction services phase, the contracting 
                      agency and the contractor may agree to a price and 
                      other factors specified in regulation for the 
                      construction of the project or a portion of the 
                      project.
                          ``(iv) Construction phase.--If an agreement is 
                      reached under clause (iii), the contractor shall 
                      be responsible for the construction of the project 
                      or portion of the project at the negotiated price 
                      and in compliance with the other factors specified 
                      in the agreement.
                    ``(B) Selection.--A contract shall be awarded to a 
                contractor under this paragraph using a competitive 
                selection process based on qualifications, experience, 
                best value, or any other combination of factors 
                considered appropriate by the contracting agency.
                    ``(C) Timing.--
                          ``(i) Relationship to nepa process.--Prior to 
                      the completion of the environmental review process 
                      required under section 102 of the National 
                      Environmental Policy Act of 1969 (42 U.S.C. 4332), 
                      a contracting agency may--
                                    ``(I) issue requests for proposals;
                                    ``(II) proceed with the award of a 
                                contract for preconstruction services 
                                under subparagraph (A)(ii); and
                                    ``(III) issue notices to proceed 
                                with a preliminary design and any work 
                                related to preliminary design, to the 
                                extent that those actions do not limit 
                                any reasonable range of alternatives.
                          ``(ii) Construction services phase.--A 
                      contracting agency shall not proceed with the 
                      award of the construction services phase of a 
                      contract under subparagraph (A)(iv) and shall not 
                      proceed, or permit

[[Page 126 STAT. 532]]

                      any consultant or contractor to proceed, with 
                      final design or construction until completion of 
                      the environmental review process required under 
                      section 102 of the National Environmental Policy 
                      Act of 1969 (42 U.S.C. 4332).
                          ``(iii) Approval requirement.--Prior to 
                      authorizing construction activities, the Secretary 
                      shall approve--
                                    ``(I) the price estimate of the 
                                contracting agency for the entire 
                                project; and
                                    ``(II) any price agreement with the 
                                general contractor for the project or a 
                                portion of the project.
                          ``(iv) Design activities.--
                                    ``(I) In general.--A contracting 
                                agency may proceed, at the expense of 
                                the contracting agency, with design 
                                activities at any level of detail for a 
                                project before completion of the review 
                                process required for the project under 
                                the National Environmental Policy Act of 
                                1969 (42 U.S.C. 4321 et seq.) without 
                                affecting subsequent approvals required 
                                for the project.
                                    ``(II) Reimbursement.--Design 
                                activities carried out under subclause 
                                (I) shall be eligible for Federal 
                                reimbursement as a project expense in 
                                accordance with the requirements under 
                                section 109(r).
                          ``(v) Termination provision.--The Secretary 
                      shall require a contract to include an appropriate 
                      termination provision in the event that a no-build 
                      alternative is selected.''.

    (b) <<NOTE: 23 USC 112 note.>> Regulations.--The Secretary shall 
promulgate such regulations as are necessary to carry out the amendment 
made by subsection (a).

    (c) <<NOTE: 23 USC 112 note.>> Effect on Experimental Program.--
Nothing in this section or the amendment made by this section affects 
the authority to carry out, or any project carried out under, any 
experimental program concerning construction manager risk that is being 
carried out by the Secretary as of the date of enactment of this Act.
SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.

    (a) <<NOTE: 23 USC 101 note.>> Declaration of Policy.--
            (1) In general.--Congress declares that it is in the 
        national interest to promote the use of innovative technologies 
        and practices that increase the efficiency of construction of, 
        improve the safety of, and extend the service life of highways 
        and bridges.
            (2) Inclusions.--The innovative technologies and practices 
        described in paragraph (1) include state-of-the-art intelligent 
        transportation system technologies, elevated performance 
        standards, and new highway construction business practices that 
        improve highway safety and quality, accelerate project delivery, 
        and reduce congestion related to highway construction.

    (b) Federal Share.--Section 120(c) of title 23, United States Code, 
is amended by adding at the end the following:
            ``(3) Innovative project delivery.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the Federal share payable on account 
                of a project,

[[Page 126 STAT. 533]]

                program, or activity carried out with funds apportioned 
                under paragraph (1), (2), or (5) of section 104(b) may, 
                at the discretion of the State, be up to 100 percent for 
                any such project, program, or activity that the 
                Secretary determines--
                          ``(i) contains innovative project delivery 
                      methods that improve work zone safety for 
                      motorists or workers and the quality of the 
                      facility;
                          ``(ii) contains innovative technologies, 
                      manufacturing processes, financing, or contracting 
                      methods that improve the quality of, extend the 
                      service life of, or decrease the long-term costs 
                      of maintaining highways and bridges;
                          ``(iii) accelerates project delivery while 
                      complying with other applicable Federal laws 
                      (including regulations) and not causing any 
                      significant adverse environmental impact; or
                          ``(iv) reduces congestion related to highway 
                      construction.
                    ``(B) Examples.--Projects, programs, and activities 
                described in subparagraph (A) may include the use of--
                          ``(i) prefabricated bridge elements and 
                      systems and other technologies to reduce bridge 
                      construction time;
                          ``(ii) innovative construction equipment, 
                      materials, or techniques, including the use of in-
                      place recycling technology and digital 3-
                      dimensional modeling technologies;
                          ``(iii) innovative contracting methods, 
                      including the design-build and the construction 
                      manager-general contractor contracting methods;
                          ``(iv) intelligent compaction equipment; or
                          ``(v) contractual provisions that offer a 
                      contractor an incentive payment for early 
                      completion of the project, program, or activity, 
                      subject to the condition that the incentives are 
                      accounted for in the financial plan of the 
                      project, when applicable.
                    ``(C) Limitations.--
                          ``(i) In general.--In each fiscal year, a 
                      State may use the authority under subparagraph (A) 
                      for up to 10 percent of the combined 
                      apportionments of the State under paragraphs (1), 
                      (2), and (5) of section 104(b).
                          ``(ii) Federal share increase.--The Federal 
                      share payable on account of a project, program, or 
                      activity described in subparagraph (A) may be 
                      increased by up to 5 percent of the total project 
                      cost.''.
SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                          DECISIONMAKING.

    (a) Flexibility.--Section 139(b) of title 23, United States Code, is 
amended--
            (1) in paragraph (2) by inserting ``, and any requirements 
        established under this section may be satisfied,'' after 
        ``exercised''; and
            (2) by adding at the end the following:
            ``(3) Programmatic compliance.--

[[Page 126 STAT. 534]]

                    ``(A) <<NOTE: Regulations.>> In general.--The 
                Secretary shall initiate a rulemaking to allow for the 
                use of programmatic approaches to conduct environmental 
                reviews that--
                          ``(i) eliminate repetitive discussions of the 
                      same issues;
                          ``(ii) focus on the actual issues ripe for 
                      analyses at each level of review; and
                          ``(iii) are consistent with--
                                    ``(I) the National Environmental 
                                Policy Act of 1969 (42 U.S.C. 4321 et 
                                seq.); and
                                    ``(II) other applicable laws.
                    ``(B) Requirements.--In carrying out subparagraph 
                (A), the Secretary shall--
                          ``(i) <<NOTE: Consultation.>> before 
                      initiating the rulemaking under that subparagraph, 
                      consult with relevant Federal agencies and State 
                      resource agencies, State departments of 
                      transportation, Indian tribes, and the public on 
                      the appropriate use and scope of the programmatic 
                      approaches;
                          ``(ii) emphasize the importance of 
                      collaboration among relevant Federal agencies, 
                      State agencies, and Indian tribes in undertaking 
                      programmatic reviews, especially with respect to 
                      including reviews with a broad geographic scope;
                          ``(iii) ensure that the programmatic reviews--
                                    ``(I) promote transparency, 
                                including of the analyses and data used 
                                in the environmental reviews, the 
                                treatment of any deferred issues raised 
                                by agencies or the public, and the 
                                temporal and special scales to be used 
                                to analyze such issues;
                                    ``(II) use accurate and timely 
                                information in reviews, including--
                                            ``(aa) criteria for 
                                        determining the general duration 
                                        of the usefulness of the review; 
                                        and
                                            ``(bb) the timeline for 
                                        updating any out-of-date review;
                                    ``(III) describe--
                                            ``(aa) the relationship 
                                        between programmatic analysis 
                                        and future tiered analysis; and
                                            ``(bb) the role of the 
                                        public in the creation of future 
                                        tiered analysis; and
                                    ``(IV) are available to other 
                                relevant Federal and State agencies, 
                                Indian tribes, and the public;
                          ``(iv) <<NOTE: Time period. Public notice and 
                      comments.>> allow not fewer than 60 days of public 
                      notice and comment on any proposed rule; and
                          ``(v) address any comments received under 
                      clause (iv).''.

    (b) Federal Lead Agency.--Section 139(c) of title 23, United States 
Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The Department of Transportation'' 
                and inserting the following:
                    ``(A) In general.--The Department of 
                Transportation''; and
                    (B) by adding at the end the following:

[[Page 126 STAT. 535]]

                    ``(B) Modal administration.--If the project requires 
                approval from more than 1 modal administration within 
                the Department, the Secretary may designate a single 
                modal administration to serve as the Federal lead agency 
                for the Department in the environmental review process 
                for the project.''.

    (c) Participating Agencies.--Section 139(d) of title 23, United 
States Code, is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) Effect of designation.--
                    ``(A) Requirement.--A participating agency shall 
                comply with the requirements of this section.
                    ``(B) Implication.--Designation as a participating 
                agency under this subsection shall not imply that the 
                participating agency--
                          ``(i) supports a proposed project; or
                          ``(ii) has any jurisdiction over, or special 
                      expertise with respect to evaluation of, the 
                      project.''; and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Concurrent reviews.--Each participating agency and 
        cooperating agency shall--
                    ``(A) carry out the obligations of that agency under 
                other applicable law concurrently, and in conjunction, 
                with the review required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.), unless doing so would impair the ability of the 
                Federal agency to conduct needed analysis or otherwise 
                carry out those obligations; and
                    ``(B) formulate and implement administrative, 
                policy, and procedural mechanisms to enable the agency 
                to ensure completion of the environmental review process 
                in a timely, coordinated, and environmentally 
                responsible manner.''.

    (d) Project Initiation.--Section 139(e) of title 23, United States 
Code, is amended--
            (1) by striking ``The project sponsor'' and inserting the 
        following:
            ``(1) In general.--The project sponsor''; and
            (2) by adding at the end the following:
            ``(2) <<NOTE: Federal Register, publication.>> Submission of 
        documents.--The project sponsor may satisfy the requirement 
        under paragraph (1) by submitting to the Secretary any relevant 
        documents containing the information described in that 
        paragraph, including a draft notice for publication in the 
        Federal Register announcing the preparation of an environmental 
        review for the project.''.

    (e) Coordination and Scheduling.--Section 139(g)(1)(B)(i) of title 
23, United States Code, is amended by inserting ``and the concurrence 
of'' after ``consultation with''.
SEC. 1306. ACCELERATED DECISIONMAKING.

    Section 139(h) of title 23, United States Code, is amended by 
striking paragraph (4) and inserting the following:
            ``(4) Interim decision on achieving accelerated 
        decisionmaking.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 30 days after the close of the public comment 
                period on a draft environmental impact statement, the 
                Secretary may convene a meeting with the project 
                sponsor, lead agency, resource agencies,

[[Page 126 STAT. 536]]

                and any relevant State agencies to ensure that all 
                parties are on schedule to meet deadlines for decisions 
                to be made regarding the project.
                    ``(B) Deadlines.--The deadlines referred to in 
                subparagraph (A) shall be those established under 
                subsection (g), or any other deadlines established by 
                the lead agency, in consultation with the project 
                sponsor and other relevant agencies.
                    ``(C) Failure to assure.--If the relevant agencies 
                cannot provide reasonable assurances that the deadlines 
                described in subparagraph (B) will be met, the Secretary 
                may initiate the issue resolution and referral process 
                described under paragraph (5) and before the completion 
                of the record of decision.
            ``(5) Accelerated issue resolution and referral.--
                    ``(A) Agency issue resolution meeting.--
                          ``(i) In general.--A Federal agency of 
                      jurisdiction, project sponsor, or the Governor of 
                      a State in which a project is located may request 
                      an issue resolution meeting to be conducted by the 
                      lead agency.
                          ``(ii) Action by lead agency.--The lead agency 
                      shall convene an issue resolution meeting under 
                      clause (i) with the relevant participating 
                      agencies and the project sponsor, including the 
                      Governor only if the meeting was requested by the 
                      Governor, to resolve issues that could--
                                    ``(I) delay completion of the 
                                environmental review process; or
                                    ``(II) result in denial of any 
                                approvals required for the project under 
                                applicable laws.
                          ``(iii) <<NOTE: Deadline.>> Date.--A meeting 
                      requested under this subparagraph shall be held by 
                      not later than 21 days after the date of receipt 
                      of the request for the meeting, unless the lead 
                      agency determines that there is good cause to 
                      extend the time for the meeting.
                          ``(iv) Notification.--On receipt of a request 
                      for a meeting under this subparagraph, the lead 
                      agency shall notify all relevant participating 
                      agencies of the request, including the issue to be 
                      resolved, and the date for the meeting.
                          ``(v) Disputes.--If a relevant participating 
                      agency with jurisdiction over an approval required 
                      for a project under applicable law determines that 
                      the relevant information necessary to resolve the 
                      issue has not been obtained and could not have 
                      been obtained within a reasonable time, but the 
                      lead agency disagrees, the resolution of the 
                      dispute shall be forwarded to the heads of the 
                      relevant agencies for resolution.
                          ``(vi) Convention by lead agency.--A lead 
                      agency may convene an issue resolution meeting 
                      under this subsection at any time without the 
                      request of the Federal agency of jurisdiction, 
                      project sponsor, or the Governor of a State.
                    ``(B) Elevation of issue resolution.--
                          ``(i) <<NOTE: Deadline. Notification.>> In 
                      general.--If issue resolution is not achieved by 
                      not later than 30 days after the date of a 
                      relevant meeting under subparagraph (A), the

[[Page 126 STAT. 537]]

                      Secretary shall notify the lead agency, the heads 
                      of the relevant participating agencies, and the 
                      project sponsor (including the Governor only if 
                      the initial issue resolution meeting request came 
                      from the Governor) that an issue resolution 
                      meeting will be convened.
                          
                      ``(ii) <<NOTE: Meeting. Deadline.>> Requirements.--
                      The Secretary shall identify the issues to be 
                      addressed at the meeting and convene the meeting 
                      not later than 30 days after the date of issuance 
                      of the notice.
                    ``(C) Referral of issue resolution.--
                          ``(i) Referral to council on environmental 
                      quality.--
                                    ``(I) In general.--If resolution is 
                                not achieved by not later than 30 days 
                                after the date of an issue resolution 
                                meeting under subparagraph (B), the 
                                Secretary shall refer the matter to the 
                                Council on Environmental Quality.
                                    ``(II) Meeting.--Not later than 30 
                                days after the date of receipt of a 
                                referral from the Secretary under 
                                subclause (I), the Council on 
                                Environmental Quality shall hold an 
                                issue resolution meeting with the lead 
                                agency, the heads of relevant 
                                participating agencies, and the project 
                                sponsor (including the Governor only if 
                                an initial request for an issue 
                                resolution meeting came from the 
                                Governor).
                          ``(ii) Referral to the president.--If a 
                      resolution is not achieved by not later than 30 
                      days after the date of the meeting convened by the 
                      Council on Environmental Quality under clause 
                      (i)(II), the Secretary shall refer the matter 
                      directly to the President.
            ``(6) Financial penalty provisions.--
                    ``(A) In general.--A Federal agency of jurisdiction 
                over an approval required for a project under applicable 
                laws shall complete any required approval on an 
                expeditious basis using the shortest existing applicable 
                process.
                    ``(B) Failure to decide.--
                          ``(i) In general.--If an agency described in 
                      subparagraph (A) fails to render a decision under 
                      any Federal law relating to a project that 
                      requires the preparation of an environmental 
                      impact statement or environmental assessment, 
                      including the issuance or denial of a permit, 
                      license, or other approval by the date described 
                      in clause (ii), an amount of funding equal to the 
                      amounts specified in subclause (I) or (II) shall 
                      be rescinded from the applicable office of the 
                      head of the agency, or equivalent office to which 
                      the authority for rendering the decision has been 
                      delegated by law by not later than 1 day after the 
                      applicable date under clause (ii), and once each 
                      week thereafter until a final decision is 
                      rendered, subject to subparagraph (C)--
                                    ``(I) $20,000 for any project for 
                                which an annual financial plan under 
                                section 106(i) is required; or
                                    ``(II) $10,000 for any other project 
                                requiring preparation of an 
                                environmental assessment or 
                                environmental impact statement.

[[Page 126 STAT. 538]]

                          ``(ii) <<NOTE: Time period.>> Description of 
                      date.--The date referred to in clause (i) is the 
                      later of--
                                    ``(I) the date that is 180 days 
                                after the date on which an application 
                                for the permit, license, or approval is 
                                complete; and
                                    ``(II) the date that is 180 days 
                                after the date on which the Federal lead 
                                agency issues a decision on the project 
                                under the National Environmental Policy 
                                Act of 1969 (42 U.S.C. 4321 et seq.).
                    ``(C) Limitations.--
                          ``(i) In general.--No rescission of funds 
                      under subparagraph (B) relating to an individual 
                      project shall exceed, in any fiscal year, an 
                      amount equal to 2.5 percent of the funds made 
                      available for the applicable agency office.
                          ``(ii) <<NOTE: Deadline.>> Failure to 
                      decide.--The total amount rescinded in a fiscal 
                      year as a result of a failure by an agency to make 
                      a decision by an applicable deadline shall not 
                      exceed an amount equal to 7 percent of the funds 
                      made available for the applicable agency office 
                      for that fiscal year.
                    ``(D) No fault of agency.--A rescission of funds 
                under this paragraph shall not be made if the lead 
                agency for the project certifies that--
                          ``(i) the agency has not received necessary 
                      information or approvals from another entity, such 
                      as the project sponsor, in a manner that affects 
                      the ability of the agency to meet any requirements 
                      under State, local, or Federal law; or
                          ``(ii) significant new information or 
                      circumstances, including a major modification to 
                      an aspect of the project, requires additional 
                      analysis for the agency to make a decision on the 
                      project application.
                    ``(E) Limitation.--The Federal agency with 
                jurisdiction for the decision from which funds are 
                rescinded pursuant to this paragraph shall not reprogram 
                funds to the office of the head of the agency, or 
                equivalent office, to reimburse that office for the loss 
                of the funds.
                    ``(F) Audits.--In any fiscal year in which any funds 
                are rescinded from a Federal agency pursuant to this 
                paragraph, the Inspector General of that agency shall--
                          ``(i) conduct an audit to assess compliance 
                      with the requirements of this paragraph; and
                          ``(ii) not later than 120 days after the end 
                      of the fiscal year during which the rescission 
                      occurred, submit to the Committee on Environment 
                      and Public Works of the Senate and the Committee 
                      on Transportation and Infrastructure of the House 
                      of Representatives a report describing the reasons 
                      why the transfers were levied, including 
                      allocations of resources.
                    ``(G) Effect of paragraph.--Nothing in this 
                paragraph affects or limits the application of, or 
                obligation to comply with, any Federal, State, local, or 
                tribal law.
            ``(7) Expedient decisions and reviews.--To ensure that 
        Federal environmental decisions and reviews are expeditiously 
        made--

[[Page 126 STAT. 539]]

                    ``(A) adequate resources made available under this 
                title shall be devoted to ensuring that applicable 
                environmental reviews under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) are 
                completed on an expeditious basis and that the shortest 
                existing applicable process under that Act is 
                implemented; and
                    ``(B) <<NOTE: President. Deadline. Reports.>> the 
                President shall submit to the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Environment and 
                Public Works of the Senate, not less frequently than 
                once every 120 days after the date of enactment of the 
                MAP-21, a report on the status and progress of the 
                following projects and activities funded under this 
                title with respect to compliance with applicable 
                requirements under the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.):
                          ``(i) Projects and activities required to 
                      prepare an annual financial plan under section 
                      106(i).
                          ``(ii) A sample of not less than 5 percent of 
                      the projects requiring preparation of an 
                      environmental impact statement or environmental 
                      assessment in each State.''.
SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES.

    Section 139(j) of title 23, United States Code, is amended by adding 
at the end the following:
            ``(6) Memorandum of understanding.--Prior to providing funds 
        approved by the Secretary for dedicated staffing at an affected 
        Federal agency under paragraphs (1) and (2), the affected 
        Federal agency and the State agency shall enter into a 
        memorandum of understanding that establishes the projects and 
        priorities to be addressed by the use of the funds.''.
SEC. 1308. LIMITATIONS ON CLAIMS.

    Section 139(l) of title 23, United States Code, is amended--
            (1) in paragraph (1) by striking ``180 days'' and inserting 
        ``150 days''; and
            (2) in paragraph (2) by striking ``180 days'' and inserting 
        ``150 days''.
SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS WITHIN 4 
                          YEARS.

    Section 139 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(m) Enhanced Technical Assistance and Accelerated Project 
Completion.--
            ``(1) Definition of covered project.--In this subsection, 
        the term `covered project' means a project--
                    ``(A) that has an ongoing environmental impact 
                statement under the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.); and
                    ``(B) for which at least 2 years, beginning on the 
                date on which a notice of intent is issued, have elapsed 
                without the issuance of a record of decision.
            ``(2) Technical assistance.--At the request of a project 
        sponsor or the Governor of a State in which a project is 
        located, the Secretary shall provide additional technical 
        assistance to

[[Page 126 STAT. 540]]

        resolve for a covered project any outstanding issues and project 
        delay, including by--
                    ``(A) providing additional staff, training, and 
                expertise;
                    ``(B) facilitating interagency coordination;
                    ``(C) promoting more efficient collaboration; and
                    ``(D) supplying specialized onsite assistance.
            ``(3) Scope of work.--
                    ``(A) In general.--In providing technical assistance 
                for a covered project under this subsection, the 
                Secretary shall establish a scope of work that describes 
                the actions that the Secretary will take to resolve the 
                outstanding issues and project delays, including 
                establishing a schedule under subparagraph (B).
                    ``(B) Schedule.--
                          ``(i) <<NOTE: Deadline.>> In general.--The 
                      Secretary shall establish and meet a schedule for 
                      the completion of any permit, approval, review, or 
                      study, required for the covered project by the 
                      date that is not later than 4 years after the date 
                      on which a notice of intent for the covered 
                      project is issued.
                          ``(ii) Inclusions.--The schedule under clause 
                      (i) shall--
                                    ``(I) comply with all applicable 
                                laws;
                                    ``(II) require the concurrence of 
                                the Council on Environmental Quality and 
                                each participating agency for the 
                                project with the State in which the 
                                project is located or the project 
                                sponsor, as applicable; and
                                    ``(III) reflect any new information 
                                that becomes available and any changes 
                                in circumstances that may result in new 
                                significant impacts that could affect 
                                the timeline for completion of any 
                                permit, approval, review, or study 
                                required for the covered project.
            ``(4) Consultation.--In providing technical assistance for a 
        covered project under this subsection, the Secretary shall 
        consult, if appropriate, with resource and participating 
        agencies on all methods available to resolve the outstanding 
        issues and project delays for a covered project as expeditiously 
        as possible.
            ``(5) Enforcement.--
                    ``(A) In general.--All provisions of this section 
                shall apply to this subsection, including the financial 
                penalty provisions under subsection (h)(6).
                    ``(B) Restriction.--If the Secretary enforces this 
                subsection under subsection (h)(6), the Secretary may 
                use a date included in a schedule under paragraph (3)(B) 
                that is created pursuant to and is in compliance with 
                this subsection in lieu of the dates under subsection 
                (h)(6)(B)(ii).''.
SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1115(a)), is amended by adding at the end the 
following:

[[Page 126 STAT. 541]]

``Sec. 168. Integration of planning and environmental review

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Environmental review process.--The term `environmental 
        review process' means the process for preparing for a project an 
        environmental impact statement, environmental assessment, 
        categorical exclusion, or other document prepared under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
            ``(2) Planning product.--The term `planning product' means a 
        detailed and timely decision, analysis, study, or other 
        documented information that--
                    ``(A) is the result of an evaluation or 
                decisionmaking process carried out during transportation 
                planning, including a detailed corridor plan or a 
                transportation plan developed under section 134 that 
                fully analyzes impacts on mobility, adjacent 
                communities, and the environment;
                    ``(B) is intended to be carried into the 
                transportation project development process; and
                    ``(C) has been approved by the State, all local and 
                tribal governments where the project is located, and by 
                any relevant metropolitan planning organization.
            ``(3) Project.--The term `project' has the meaning given the 
        term in section 139(a).
            ``(4) Project sponsor.--The term `project sponsor' has the 
        meaning given the term in section 139(a).

    ``(b) Adoption of Planning Products for Use in NEPA Proceedings.--
            ``(1) In general.--Subject to the conditions set forth in 
        subsection (d), the Federal lead agency for a project may adopt 
        and use a planning product in proceedings relating to any class 
        of action in the environmental review process of the project.
            ``(2) Identification.--When the Federal lead agency makes a 
        determination to adopt and use a planning product, the Federal 
        lead agency shall identify those agencies that participated in 
        the development of the planning products.
            ``(3) Partial adoption of planning products.--The Federal 
        lead agency may adopt a planning product under paragraph (1) in 
        its entirety or may select portions for adoption.
            ``(4) Timing.--A determination under paragraph (1) with 
        respect to the adoption of a planning product may be made at the 
        time the lead agencies decide the appropriate scope of 
        environmental review for the project but may also occur later in 
        the environmental review process, as appropriate.

    ``(c) Applicability.--
            ``(1) Planning decisions.--Planning decisions that may be 
        adopted pursuant to this section include--
                    ``(A) whether tolling, private financial assistance, 
                or other special financial measures are necessary to 
                implement the project;
                    ``(B) a decision with respect to modal choice, 
                including a decision to implement corridor or subarea 
                study recommendations to advance different modal 
                solutions as separate projects with independent utility;
                    ``(C) a basic description of the environmental 
                setting;

[[Page 126 STAT. 542]]

                    ``(D) a decision with respect to methodologies for 
                analysis; and
                    ``(E) an identification of programmatic level 
                mitigation for potential impacts that the Federal lead 
                agency, in consultation with Federal, State, local, and 
                tribal resource agencies, determines are most 
                effectively addressed at a regional or national program 
                level, including--
                          ``(i) system-level measures to avoid, 
                      minimize, or mitigate impacts of proposed 
                      transportation investments on environmental 
                      resources, including regional ecosystem and water 
                      resources; and
                          ``(ii) potential mitigation activities, 
                      locations, and investments.
            ``(2) Planning analyses.--Planning analyses that may be 
        adopted pursuant to this section include studies with respect 
        to--
                    ``(A) travel demands;
                    ``(B) regional development and growth;
                    ``(C) local land use, growth management, and 
                development;
                    ``(D) population and employment;
                    ``(E) natural and built environmental conditions;
                    ``(F) environmental resources and environmentally 
                sensitive areas;
                    ``(G) potential environmental effects, including the 
                identification of resources of concern and potential 
                cumulative effects on those resources, identified as a 
                result of a statewide or regional cumulative effects 
                assessment; and
                    ``(H) mitigation needs for a proposed action, or for 
                programmatic level mitigation, for potential effects 
                that the Federal lead agency determines are most 
                effectively addressed at a regional or national program 
                level.

    ``(d) Conditions.--Adoption and use of a planning product under this 
section is subject to a determination by the Federal lead agency, with 
the concurrence of other participating agencies with relevant expertise 
and project sponsors as appropriate, and with an opportunity for public 
notice and comment and consideration of those comments by the Federal 
lead agency, that the following conditions have been met:
            ``(1) The planning product was developed through a planning 
        process conducted pursuant to applicable Federal law.
            ``(2) The planning product was developed by engaging in 
        active consultation with appropriate Federal and State resource 
        agencies and Indian tribes.
            ``(3) The planning process included broad multidisciplinary 
        consideration of systems-level or corridor-wide transportation 
        needs and potential effects, including effects on the human and 
        natural environment.
            ``(4) During the planning process, notice was provided 
        through publication or other means to Federal, State, local, and 
        tribal governments that might have an interest in the proposed 
        project, and to members of the general public, of the planning 
        products that the planning process might produce and that might 
        be relied on during any subsequent environmental review process, 
        and such entities have been provided an appropriate opportunity 
        to participate in the planning process leading to such planning 
        product.

[[Page 126 STAT. 543]]

            ``(5) After initiation of the environmental review process, 
        but prior to determining whether to rely on and use the planning 
        product, the lead Federal agency has made documentation relating 
        to the planning product available to Federal, State, local, and 
        tribal governments that may have an interest in the proposed 
        action, and to members of the general public, and has considered 
        any resulting comments.
            ``(6) There is no significant new information or new 
        circumstance that has a reasonable likelihood of affecting the 
        continued validity or appropriateness of the planning product.
            ``(7) The planning product has a rational basis and is based 
        on reliable and reasonably current data and reasonable and 
        scientifically acceptable methodologies.
            ``(8) The planning product is documented in sufficient 
        detail to support the decision or the results of the analysis 
        and to meet requirements for use of the information in the 
        environmental review process.
            ``(9) The planning product is appropriate for adoption and 
        use in the environmental review process for the project.
            ``(10) The planning product was approved not later than 5 
        years prior to date on which the information is adopted pursuant 
        to this section.

    ``(e) Effect of Adoption.--Any planning product adopted by the 
Federal lead agency in accordance with this section may be incorporated 
directly into an environmental review process document or other 
environmental document and may be relied upon and used by other Federal 
agencies in carrying out reviews of the project.
    ``(f) Rules of Construction.--
            ``(1) In general.--This section shall not be construed to 
        make the environmental review process applicable to the 
        transportation planning process conducted under this title and 
        chapter 53 of title 49.
            ``(2) Transportation planning activities.--Initiation of the 
        environmental review process as a part of, or concurrently with, 
        transportation planning activities does not subject 
        transportation plans and programs to the environmental review 
        process.
            ``(3) Planning products.--This section shall not be 
        construed to affect the use of planning products in the 
        environmental review process pursuant to other authorities under 
        any other provision of law or to restrict the initiation of the 
        environmental review process during planning.''.

    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1115(b)), is 
amended by adding at end the following:

``Sec. 168. Integration of planning and environmental review.''.

SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1310(a)), is amended by adding at the end the 
following:
``Sec. 169. Development of programmatic mitigation plans

    ``(a) In General.--As part of the statewide or metropolitan 
transportation planning process, a State or metropolitan planning 
organization may develop 1 or more programmatic mitigation plans

[[Page 126 STAT. 544]]

to address the potential environmental impacts of future transportation 
projects.
    ``(b) Scope.--
            ``(1) Scale.--A programmatic mitigation plan may be 
        developed on a regional, ecosystem, watershed, or statewide 
        scale.
            ``(2) Resources.--The plan may encompass multiple 
        environmental resources within a defined geographic area or may 
        focus on a specific resource, such as aquatic resources, 
        parkland, or wildlife habitat.
            ``(3) Project impacts.--The plan may address impacts from 
        all projects in a defined geographic area or may focus on a 
        specific type of project.
            ``(4) Consultation.--The scope of the plan shall be 
        determined by the State or metropolitan planning organization, 
        as appropriate, in consultation with the agency or agencies with 
        jurisdiction over the resources being addressed in the 
        mitigation plan.

    ``(c) Contents.--A programmatic mitigation plan may include--
            ``(1) an assessment of the condition of environmental 
        resources in the geographic area covered by the plan, including 
        an assessment of recent trends and any potential threats to 
        those resources;
            ``(2) an assessment of potential opportunities to improve 
        the overall quality of environmental resources in the geographic 
        area covered by the plan, through strategic mitigation for 
        impacts of transportation projects;
            ``(3) standard measures for mitigating certain types of 
        impacts;
            ``(4) parameters for determining appropriate mitigation for 
        certain types of impacts, such as mitigation ratios or criteria 
        for determining appropriate mitigation sites;
            ``(5) adaptive management procedures, such as protocols that 
        involve monitoring predicted impacts over time and adjusting 
        mitigation measures in response to information gathered through 
        the monitoring; and
            ``(6) acknowledgment of specific statutory or regulatory 
        requirements that must be satisfied when determining appropriate 
        mitigation for certain types of resources.

    ``(d) Process.--Before adopting a programmatic mitigation plan, a 
State or metropolitan planning organization shall--
            ``(1) <<NOTE: Consultation.>> consult with each agency with 
        jurisdiction over the environmental resources considered in the 
        programmatic mitigation plan;
            ``(2) make a draft of the plan available for review and 
        comment by applicable environmental resource agencies and the 
        public;
            ``(3) consider any comments received from such agencies and 
        the public on the draft plan; and
            ``(4) address such comments in the final plan.

    ``(e) Integration With Other Plans.--A programmatic mitigation plan 
may be integrated with other plans, including watershed plans, ecosystem 
plans, species recovery plans, growth management plans, and land use 
plans.
    ``(f) Consideration in Project Development and Permitting.--If a 
programmatic mitigation plan has been developed pursuant to this 
section, any Federal agency responsible for environmental reviews, 
permits, or approvals for a transportation project

[[Page 126 STAT. 545]]

may use the recommendations in a programmatic mitigation plan when 
carrying out the responsibilities under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(g) Preservation of Existing Authorities.--Nothing in this section 
limits the use of programmatic approaches to reviews under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1309(b)), is 
amended by adding at the end the following:

``Sec. 169. Development of programmatic mitigation plans.''.

SEC. 1312. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                          EXCLUSIONS.

    Section 326 of title 23, United States Code, is amended--
            (1) in subsection (a) by adding at the end the following:
            ``(4) Preservation of flexibility.--The Secretary shall not 
        require a State, as a condition of assuming responsibility under 
        this section, to forego project delivery methods that are 
        otherwise permissible for highway projects.'';
            (2) by striking subsection (d) and inserting the following:

    ``(d) Termination.--
            ``(1) Termination by the secretary.--The Secretary may 
        terminate any assumption of responsibility under a memorandum of 
        understanding on a determination that the State is not 
        adequately carrying out the responsibilities assigned to the 
        State.
            ``(2) <<NOTE: Notice. Deadline.>> Termination by the 
        state.--The State may terminate the participation of the State 
        in the program at any time by providing to the Secretary a 
        notice not later than the date that is 90 days before the date 
        of termination, and subject to such terms and conditions as the 
        Secretary may provide.''; and
            (3) by adding at the end the following:

    ``(f) Legal Fees.--A State assuming the responsibilities of the 
Secretary under this section for a specific project may use funds 
apportioned to the State under section 104(b)(2) for attorney's fees 
directly attributable to eligible activities associated with the 
project.''.
SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.

    (a) Program Name.--Section 327 of title 23, United States Code, is 
amended--
            (1) in the section heading by striking ``pilot''; and
            (2) in subsection (a)(1) by striking ``pilot''.

    (b) Assumption of Responsibility.--Section 327(a)(2) of title 23, 
United States Code, is amended--
            (1) in subparagraph (B)--
                    (A) in clause (i) by striking ``but''; and
                    (B) by striking clause (ii) and inserting the 
                following:
                          ``(ii) at the request of the State, the 
                      Secretary may also assign to the State, and the 
                      State may assume, the responsibilities of the 
                      Secretary with respect to 1 or more railroad, 
                      public transportation, or multimodal projects 
                      within the State under the National Environmental 
                      Policy Act of 1969 (42 U.S.C. 4321 et seq.);

[[Page 126 STAT. 546]]

                          ``(iii) in a State that has assumed the 
                      responsibilities of the Secretary under clause 
                      (ii), a recipient of assistance under chapter 53 
                      of title 49 may request that the Secretary 
                      maintain the responsibilities of the Secretary 
                      with respect to 1 or more public transportation 
                      projects within the State under the National 
                      Environmental Policy Act of 1969 (42 U.S.C. 13 
                      4321 et seq.); but
                          ``(iv) the Secretary may not assign--
                                    ``(I) any responsibility imposed on 
                                the Secretary by section 134 or 135 or 
                                section 5303 or 5304 of title 49; or
                                    ``(II) responsibility for any 
                                conformity determination required under 
                                section 176 of the Clean Air Act (42 
                                U.S.C. 7506).''; and
            (2) by adding at the end the following:
                    ``(F) Preservation of flexibility.--The Secretary 
                may not require a State, as a condition of participation 
                in the program, to forego project delivery methods that 
                are otherwise permissible for projects.
                    ``(G) Legal fees.--A State assuming the 
                responsibilities of the Secretary under this section for 
                a specific project may use funds apportioned to the 
                State under section 104(b)(2) for attorneys' fees 
                directly attributable to eligible activities associated 
                with the project.''.

    (c) State Participation.--Section 327(b) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Participating states.--All States are eligible to 
        participate in the program.''; and
            (2) in paragraph (2) by striking ``date of enactment of this 
        section, the Secretary shall promulgate'' and inserting ``date 
        on which amendments to this section by the MAP-21 take effect, 
        the Secretary shall amend, as appropriate,''.

    (d) Written Agreement.--Section 327(c) of title 23, United States 
Code, is amended--
            (1) in paragraph (3)(D) by striking the period at the end 
        and inserting a semicolon; and
            (2) by adding at the end the following:
            ``(4) require the State to provide to the Secretary any 
        information the Secretary considers necessary to ensure that the 
        State is adequately carrying out the responsibilities assigned 
        to the State;
            ``(5) have a term of not more than 5 years; and
            ``(6) be renewable.''.

    (e) Conforming Amendment.--Section 327(e) of title 23, United States 
Code, is amended by striking ``subsection (i)'' and inserting 
``subsection (j)''.
    (f) Audits.--Section 327(g)(1)(B) of title 23, United States Code, 
is amended by striking ``subsequent year'' and inserting ``of the third 
and fourth years''.
    (g) Monitoring.--Section 327 of title 23, United States Code, is 
amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following:

[[Page 126 STAT. 547]]

    ``(h) Monitoring.--After the fourth year of the participation of a 
State in the program, the Secretary shall monitor compliance by the 
State with the written agreement, including the provision by the State 
of financial resources to carry out the written agreement.''.
    (h) Termination.--Section 327(j) of title 23, United States Code (as 
so redesignated), is amended to read as follows:
    ``(j) Termination.--
            ``(1) Termination by the secretary.--The Secretary may 
        terminate the participation of any State in the program if--
                    ``(A) the Secretary determines that the State is not 
                adequately carrying out the responsibilities assigned to 
                the State;
                    ``(B) the Secretary provides to the State--
                          ``(i) <<NOTE: Notification.>> notification of 
                      the determination of noncompliance; and
                          ``(ii) <<NOTE: Time period.>> a period of at 
                      least 30 days during which to take such corrective 
                      action as the Secretary determines is necessary to 
                      comply with the applicable agreement; and
                    ``(C) the State, after the notification and period 
                provided under subparagraph (B), fails to take 
                satisfactory corrective action, as determined by the 
                Secretary.
            ``(2) <<NOTE: Notice. Deadline.>> Termination by the 
        state.--The State may terminate the participation of the State 
        in the program at any time by providing to the Secretary a 
        notice by not later than the date that is 90 days before the 
        date of termination, and subject to such terms and conditions as 
        the Secretary may provide.''.

    (i) Clerical Amendment.--The item relating to section 327 in the 
analysis of title 23, United States Code, is amended to read as follows:

``327. Surface transportation project delivery program.''.

SEC. 1314. APPLICATION OF CATEGORICAL EXCLUSIONS FOR MULTIMODAL 
                          PROJECTS.

    (a) In General.--Section 304 of title 49, United States Code, is 
amended to read as follows:
``Sec. 304. Application of categorical exclusions for multimodal 
                projects

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Cooperating authority.--The term `cooperating 
        authority' means a Department of Transportation operating 
        authority that is not the lead authority with respect to a 
        project.
            ``(2) Lead authority.--The term `lead authority' means a 
        Department of Transportation operating administration or 
        secretarial office that--
                    ``(A) is the lead authority over a proposed 
                multimodal project; and
                    ``(B) has determined that the components of the 
                project that fall under the modal expertise of the lead 
                authority--
                          ``(i) satisfy the conditions for a categorical 
                      exclusion under implementing regulations or 
                      procedures of the lead authority under the 
                      National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.); and

[[Page 126 STAT. 548]]

                          ``(ii) do not require the preparation of an 
                      environmental assessment or environmental impact 
                      statement under that Act.
            ``(3) Multimodal project.--The term `multimodal project' has 
        the meaning given the term in section 139(a) of title 23.

    ``(b) Exercise of Authorities.--The authorities granted in this 
section may be exercised for a multimodal project, class of projects, or 
program of projects that are carried out under this title.
    ``(c) Application of Categorical Exclusions for Multimodal 
Projects.--In considering the environmental impacts of a proposed 
multimodal project, a lead authority may apply a categorical exclusion 
designated under the implementing regulations or procedures of a 
cooperating authority for other components of the project, subject to 
the conditions that--
            ``(1) the multimodal project is funded under 1 grant 
        agreement administered by the lead authority;
            ``(2) the multimodal project has components that require the 
        expertise of a cooperating authority to assess the environmental 
        impacts of the components;
            ``(3) the component of the project to be covered by the 
        categorical exclusion of the cooperating authority has 
        independent utility;
            ``(4) the cooperating authority, in consultation with the 
        lead authority--
                    ``(A) follows implementing regulations or procedures 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.); and
                    ``(B) determines that a categorical exclusion under 
                that Act applies to the components; and
            ``(5) the lead authority has determined that--
                    ``(A) the project, using the categorical exclusions 
                of the lead authority and each applicable cooperating 
                authority, does not individually or cumulatively have a 
                significant impact on the environment; and
                    ``(B) extraordinary circumstances do not exist that 
                merit additional analysis and documentation in an 
                environmental impact statement or environmental 
                assessment required under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.).

    ``(d) Modal Cooperation.--
            ``(1) In general.--A cooperating authority shall provide 
        modal expertise to the lead authority on such aspects of the 
        multimodal project in which the cooperating authority has 
        expertise.
            ``(2) Use of categorical exclusion.--In a case described in 
        paragraph (1), the 1 or more categorical exclusions of a 
        cooperating authority may be applied by the lead authority once 
        the cooperating authority reviews the project on behalf of the 
        lead authority and determines the project satisfies the 
        conditions for a categorical exclusion under the implementing 
        regulations or procedures of the cooperating authority under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and this section.''.

[[Page 126 STAT. 549]]

    (b) Conforming Amendment.--The item relating to section 304 in the 
analysis for title 49, United States Code, is amended to read as 
follows:

``304. Application of categorical exclusions for multimodal projects''.

SEC. 1315. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS IN 
                          EMERGENCIES.

    (a) <<NOTE: Deadline. Notice. Regulations.>> In General.--Not later 
than 30 days after the date of enactment of this Act, for the repair or 
reconstruction of any road, highway, or bridge that is in operation or 
under construction when damaged by an emergency declared by the Governor 
of the State and concurred in by the Secretary, or for a disaster or 
emergency declared by the President pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
the Secretary shall publish a notice of proposed rulemaking to treat any 
such repair or reconstruction activity as a class of action 
categorically excluded from the requirements relating to environmental 
assessments or environmental impact statements under section 1508.4 of 
title 40, Code of Federal Regulations, and section 771.117 of title 23, 
Code of Federal Regulations (as in effect on the date of enactment of 
this Act) if such repair or reconstruction activity is--
            (1) in the same location with the same capacity, dimensions, 
        and design as the original road, highway, or bridge as before 
        the declaration described in this section; and
            (2) commenced within a 2-year period beginning on the date 
        of a declaration described in this section.

    (b) Rulemaking.--
            (1) In general.--The Secretary shall ensure that the 
        rulemaking helps to conserve Federal resources and protects 
        public safety and health by providing for periodic evaluations 
        to determine if reasonable alternatives exist to roads, 
        highways, or bridges that repeatedly require repair and 
        reconstruction activities.
            (2) Reasonable alternatives.--The reasonable alternatives 
        described in paragraph (1) include actions that could reduce the 
        need for Federal funds to be expended on such repair and 
        reconstruction activities, better protect public safety and 
        health and the environment, and meet transportation needs as 
        described in relevant and applicable Federal, State, local and 
        tribal plans.
SEC. 1316. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS FOR 
                          PROJECTS WITHIN THE RIGHT-OF-WAY.

    (a) <<NOTE: Deadlines.>> In General.--The Secretary shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, designate any project (as defined in section 101(a) of 
        title 23, United States Code) within an existing operational 
        right-of-way as an action categorically excluded from the 
        requirements relating to environmental assessments or 
        environmental impact statements under section 1508.4 of title 
        40, Code of Federal Regulations, and section 771.117(c) of title 
        23, Code of Federal Regulations; and
            (2) not later than 150 days after the date of enactment of 
        this Act, promulgate regulations to carry out paragraph (1).

    (b) Definition of an Operational Right-of-way.--In this section, the 
term ``operational right-of-way'' means all real property

[[Page 126 STAT. 550]]

interests acquired for the construction, operation, or mitigation of a 
project (as defined in section 101(a) of title 23, United States Code), 
including the locations of the roadway, bridges, interchanges, culverts, 
drainage, clear zone, traffic control signage, landscaping, and any rest 
areas with direct access to a controlled access highway.
SEC. 1317. <<NOTE: Deadline. 23 USC 109 note.>> CATEGORICAL 
                          EXCLUSION FOR PROJECTS OF LIMITED 
                          FEDERAL ASSISTANCE.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary shall--*
            (1) designate as an action categorically excluded from the 
        requirements relating to environmental assessments or 
        environmental impact statements under section 1508.4 of title 
        40, Code of Federal Regulations, and section 771.117(c) of title 
        23, Code of Federal Regulations, any project--
                    (A) that receives less than $5,000,000 of Federal 
                funds; or
                    (B) with a total estimated cost of not more than 
                $30,000,000 and Federal funds comprising less than 15 
                percent of the total estimated project cost; and
            (2) not later than 150 days after the date of enactment of 
        this Act, promulgate regulations to carry out paragraph (1).
SEC. 1318. <<NOTE: 23 USC 109 note.>> PROGRAMMATIC AGREEMENTS AND 
                          ADDITIONAL CATEGORICAL EXCLUSIONS.

    (a) <<NOTE: Deadline.>> In General.--Not later than 60 days after 
the date of enactment of this Act, the Secretary shall--
            (1) <<NOTE: Survey.>> survey the use by the Department of 
        categorical exclusions in transportation projects since 2005;
            (2) <<NOTE: Publication.>> publish a review of the survey 
        that includes a description of--
                    (A) the types of actions categorically excluded; and
                    (B) any requests previously received by the 
                Secretary for new categorical exclusions; and
            (3) solicit requests from State departments of 
        transportation, transit authorities, metropolitan planning 
        organizations, or other government agencies for new categorical 
        exclusions.

    (b) <<NOTE: Deadline.>> New Categorical Exclusions.--Not later than 
120 days after the date of enactment of this Act, the Secretary shall 
publish a notice of proposed rulemaking to propose new categorical 
exclusions received by the Secretary under subsection (a), to the extent 
that the categorical exclusions meet the criteria for a categorical 
exclusion under section 1508.4 of title 40, Code of Federal Regulations, 
and section 771.117(a) of title 23, Code of Federal Regulations (as 
those regulations are in effect on the date of the notice).

    (c) <<NOTE: Regulations.>> Additional Actions.--The Secretary shall 
issue a proposed rulemaking to move the following types of actions from 
subsection (d) of section 771.117 of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
subsection (c) of that section, to the extent that such movement 
complies with the criteria for a categorical exclusion under section 
1508.4 of title 40, Code of Federal Regulations (as in effect on the 
date of enactment of this Act):
            (1) Modernization of a highway by resurfacing, restoration, 
        rehabilitation, reconstruction, adding shoulders, or adding 
        auxiliary lanes (including parking, weaving, turning, and 
        climbing).

[[Page 126 STAT. 551]]

            (2) Highway safety or traffic operations improvement 
        projects, including the installation of ramp metering control 
        devices and lighting.
            (3) Bridge rehabilitation, reconstruction, or replacement or 
        the construction of grade separation to replace existing at-
        grade railroad crossings.

    (d) Programmatic Agreements.--
            (1) In general.--The Secretary shall seek opportunities to 
        enter into programmatic agreements with the States that 
        establish efficient administrative procedures for carrying out 
        environmental and other required project reviews.
            (2) Inclusions.--Programmatic agreements authorized under 
        paragraph (1) may include agreements that allow a State to 
        determine on behalf of the Federal Highway Administration 
        whether a project is categorically excluded from the preparation 
        of an environmental assessment or environmental impact statement 
        under the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.).
            (3) Determinations.--An agreement described in paragraph (2) 
        may include determinations by the Secretary of the types of 
        projects categorically excluded (consistent with section 1508.4 
        of title 40, Code of Federal Regulations) in the State in 
        addition to the types listed in subsections (c) and (d) of 
        section 771.117 of title 23, Code of Federal Regulations (as in 
        effect on the date of enactment of this Act).
SEC. 1319. <<NOTE: 42 USC 4332a note.>> ACCELERATED DECISIONMAKING 
                          IN ENVIRONMENTAL REVIEWS.

    (a) In General.--In preparing a final environmental impact statement 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), if the lead agency modifies the statement in response to comments 
that are minor and are confined to factual corrections or explanations 
of why the comments do not warrant additional agency response, the lead 
agency may write on errata sheets attached to the statement instead of 
rewriting the draft statement, subject to the condition that the errata 
sheets--
            (1) cite the sources, authorities, or reasons that support 
        the position of the agency; and
            (2) if appropriate, indicate the circumstances that would 
        trigger agency reappraisal or further response.

    (b) Incorporation.--To the maximum extent practicable, the lead 
agency shall expeditiously develop a single document that consists of a 
final environmental impact statement and a record of decision, unless--
            (1) the final environmental impact statement makes 
        substantial changes to the proposed action that are relevant to 
        environmental or safety concerns; or
            (2) there are significant new circumstances or information 
        relevant to environmental concerns and that bear on the proposed 
        action or the impacts of the proposed action.
SEC. 1320. <<NOTE: 23 USC 139 note.>> MEMORANDA OF AGENCY 
                          AGREEMENTS FOR EARLY COORDINATION.

    (a) In General.--It is the sense of Congress that--
            (1) the Secretary and other Federal agencies with relevant 
        jurisdiction in the environmental review process should 
        cooperate with each other and other agencies on environmental 
        review and project delivery activities at the earliest 
        practicable

[[Page 126 STAT. 552]]

        time to avoid delays and duplication of effort later in the 
        process, head off potential conflicts, and ensure that planning 
        and project development decisions reflect environmental values; 
        and
            (2) such cooperation should include the development of 
        policies and the designation of staff that advise planning 
        agencies or project sponsors of studies or other information 
        foreseeably required for later Federal action and early 
        consultation with appropriate State and local agencies and 
        Indian tribes.

    (b) Technical Assistance.--If requested at any time by a State or 
local planning agency, the Secretary and other Federal agencies with 
relevant jurisdiction in the environmental review process, shall, to the 
extent practicable and appropriate, as determined by the agencies, 
provide technical assistance to the State or local planning agency on 
accomplishing the early coordination activities described in subsection 
(d).
    (c) Memorandum of Agency Agreement.--If requested at any time by a 
State or local planning agency, the lead agency, in consultation with 
other Federal agencies with relevant jurisdiction in the environmental 
review process, may establish memoranda of agreement with the project 
sponsor, State, and local governments and other appropriate entities to 
accomplish the early coordination activities described in subsection 
(d).
    (d) Early Coordination Activities.--Early coordination activities 
shall include, to the maximum extent practicable, the following:
            (1) Technical assistance on identifying potential impacts 
        and mitigation issues in an integrated fashion.
            (2) The potential appropriateness of using planning products 
        and decisions in later environmental reviews.
            (3) The identification and elimination from detailed study 
        in the environmental review process of the issues that are not 
        significant or that have been covered by prior environmental 
        reviews.
            (4) The identification of other environmental review and 
        consultation requirements so that the lead and cooperating 
        agencies may prepare, as appropriate, other required analyses 
        and studies concurrently with planning activities.
            (5) The identification by agencies with jurisdiction over 
        any permits related to the project of any and all relevant 
        information that will reasonably be required for the project.
            (6) The reduction of duplication between requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and State and local planning and environmental review 
        requirements, unless the agencies are specifically barred from 
        doing so by applicable law.
            (7) Timelines for the completion of agency actions during 
        the planning and environmental review processes.
            (8) Other appropriate factors.
SEC. 1321. <<NOTE: Review. Contracts.>> ENVIRONMENTAL PROCEDURES 
                          INITIATIVE.

    (a) Establishment.--For grant programs under which funds are 
distributed by formula by the Department, the Secretary shall establish 
an initiative to review and develop consistent procedures for 
environmental permitting and procurement requirements that

[[Page 126 STAT. 553]]

apply to a project carried out under title 23, United States Code, or 
chapter 53 of title 49, United States Code.
    (b) Report.--The Secretary shall publish the results of the 
initiative described in subsection (a) in an electronically accessible 
format.
SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND APPROVALS FOR 
                          THE PURPOSE OF ELIMINATING DUPLICATION 
                          OF ENVIRONMENTAL REVIEWS.

    For environmental reviews and approvals carried out on projects 
funded under title 23, United States Code, the Comptroller General of 
the United States shall--
            (1) review State laws and procedures for conducting 
        environmental reviews with regard to such projects and identify 
        the States that have environmental laws that provide 
        environmental protections and opportunities for public 
        involvement that are equivalent to those provided by Federal 
        environmental laws;
            (2) <<NOTE: Determination.>> determine the frequency and 
        cost of environmental reviews carried out at the Federal level 
        that are duplicative of State reviews that provide equivalent 
        environmental protections and opportunities for public 
        involvement; and
            (3) <<NOTE: Deadline.>> not later than 2 years after the 
        date of enactment of this Act, submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate a report that describes the results of the 
        review and determination made under this section.
SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

    (a) Completion Time Assessments and Reports.--
            (1) In general.--For projects funded under title 23, United 
        States Code, the Secretary shall compare--
                    (A)(i) the completion times of categorical 
                exclusions, environmental assessments, and environmental 
                impact statements initiated after calendar year 2005; to
                    (ii) the completion times of categorical exclusions, 
                environmental assessments, and environmental impact 
                statements initiated during a period prior to calendar 
                year 2005; and
                    (B)(i) the completion times of categorical 
                exclusions, environmental assessments, and environmental 
                impact statements initiated during the period beginning 
                on January 1, 2005, and ending on the date of enactment 
                of this Act; to
                    (ii) the completion times of categorical exclusions, 
                environmental assessments, and environmental impact 
                statements initiated after the date of enactment of this 
                Act.
            (2) Report.--The Secretary shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate--
                    (A) not later than 1 year after the date of 
                enactment of this Act, a report that--
                          (i) describes the results of the review 
                      conducted under paragraph (1)(A); and

[[Page 126 STAT. 554]]

                          (ii) identifies any change in the timing for 
                      completions, including the reasons for any such 
                      change and the reasons for delays in excess of 5 
                      years; and
                    (B) not later than 5 years after the date of 
                enactment of this Act, a report that--
                          (i) describes the results of the review 
                      conducted under paragraph (1)(B); and
                          (ii) identifies any change in the timing for 
                      completions, including the reasons for any such 
                      change and the reasons for delays in excess of 5 
                      years.

    (b) Additional Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Environment and Public Works of the Senate a report on 
the types and justification for the additional categorical exclusions 
granted under the authority provided under sections 1316 and 1317.
    (c) GAO Report.--The Comptroller General of the United States 
shall--
            (1) assess the reforms carried out under this subtitle 
        (including the amendments made by this subtitle); and
            (2) not later than 5 years after the date of enactment of 
        this Act, submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the Committee 
        on Environment and Public Works of the Senate a report that 
        describes the results of the assessment.

    (d) Inspector General Report.--The Inspector General of the 
Department of Transportation shall--
            (1) assess the reforms carried out under this subtitle 
        (including the amendments made by this subtitle); and
            (2) submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the Committee 
        on Environment and Public Works of the Senate--
                    (A) not later than 2 years after the date of 
                enactment of this Act, an initial report of the findings 
                of the Inspector General; and
                    (B) not later than 4 years after the date of 
                enactment of this Act, a final report of the findings.

                       Subtitle D--Highway Safety

SEC. 1401. <<NOTE: 23 USC 137 note.>> JASON'S LAW.

    (a) In General.--It is the sense of Congress that it is a national 
priority to address projects under this section for the shortage of 
long-term parking for commercial motor vehicles on the National Highway 
System to improve the safety of motorized and nonmotorized users and for 
commercial motor vehicle operators.
    (b) Eligible Projects.--Eligible projects under this section are 
those that--
            (1) serve the National Highway System; and
            (2) may include the following:
                    (A) Constructing safety rest areas (as defined in 
                section 120(c) of title 23, United States Code) that 
                include parking for commercial motor vehicles.

[[Page 126 STAT. 555]]

                    (B) Constructing commercial motor vehicle parking 
                facilities adjacent to commercial truck stops and travel 
                plazas.
                    (C) Opening existing facilities to commercial motor 
                vehicle parking, including inspection and weigh stations 
                and park-and-ride facilities.
                    (D) Promoting the availability of publicly or 
                privately provided commercial motor vehicle parking on 
                the National Highway System using intelligent 
                transportation systems and other means.
                    (E) Constructing turnouts along the National Highway 
                System for commercial motor vehicles.
                    (F) Making capital improvements to public commercial 
                motor vehicle parking facilities currently closed on a 
                seasonal basis to allow the facilities to remain open 
                year-round.
                    (G) Improving the geometric design of interchanges 
                on the National Highway System to improve access to 
                commercial motor vehicle parking facilities.

    (c) <<NOTE: Deadline.>> Survey and Comparative Assessment.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary, in consultation with 
        relevant State motor carrier safety personnel, shall conduct a 
        survey of each State--
                    (A) to evaluate the capability of the State to 
                provide adequate parking and rest facilities for 
                commercial motor vehicles engaged in interstate 
                transportation;
                    (B) to assess the volume of commercial motor vehicle 
                traffic in the State; and
                    (C) to develop a system of metrics to measure the 
                adequacy of commercial motor vehicle parking facilities 
                in the State.
            (2) <<NOTE: Public information. Web posting.>> Results.--The 
        results of the survey under paragraph (1) shall be made 
        available to the public on the website of the Department of 
        Transportation.
            (3) Periodic updates.--The Secretary shall periodically 
        update the survey under this subsection.

    (d) Electric Vehicle and Natural Gas Vehicle Infrastructure.--
            (1) In general.--Except as provided in paragraph (2), a 
        State may establish electric vehicle charging stations or 
        natural gas vehicle refueling stations for the use of battery-
        powered or natural gas-fueled trucks or other motor vehicles at 
        any parking facility funded or authorized under this Act or 
        title 23, United States Code.
            (2) Exception.--Electric vehicle battery charging stations 
        or natural gas vehicle refueling stations may not be established 
        or supported under paragraph (1) if commercial establishments 
        serving motor vehicle users are prohibited by section 111 of 
        title 23, United States Code.
            (3) Funds.--Charging or refueling stations described in 
        paragraph (1) shall be eligible for the same funds as are 
        available for the parking facilities in which the stations are 
        located.

    (e) Treatment of Projects.--Notwithstanding any other provision of 
law, projects funded through the authority provided under this section 
shall be treated as projects on a Federal-aid highway under chapter 1 of 
title 23, United States Code.

[[Page 126 STAT. 556]]

SEC. 1402. OPEN CONTAINER REQUIREMENTS.

    Section 154(c) of title 23, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Fiscal year 2012 and thereafter.--
                    ``(A) Reservation of funds.--On October 1, 2011, and 
                each October 1 thereafter, if a State has not enacted or 
                is not enforcing an open container law described in 
                subsection (b), the Secretary shall reserve an amount 
                equal to 2.5 percent of the funds to be apportioned to 
                the State on that date under each of paragraphs (1) and 
                (2) of section 104(b) until the State certifies to the 
                Secretary the means by which the State will use those 
                reserved funds in accordance with subparagraphs (A) and 
                (B) of paragraph (1) and paragraph (3).
                    ``(B) Transfer of funds.--As soon as practicable 
                after the date of receipt of a certification from a 
                State under subparagraph (A), the Secretary shall--
                          ``(i) transfer the reserved funds identified 
                      by the State for use as described in subparagraphs 
                      (A) and (B) of paragraph (1) to the apportionment 
                      of the State under section 402; and
                          ``(ii) release the reserved funds identified 
                      by the State as described in paragraph (3).'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Use for highway safety improvement program.--
                    ``(A) In general.--A State may elect to use all or a 
                portion of the funds transferred under paragraph (2) for 
                activities eligible under section 148.
                    ``(B) State departments of transportation.--If the 
                State makes an election under subparagraph (A), the 
                funds shall be transferred to the department of 
                transportation of the State, which shall be responsible 
                for the administration of the funds.''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Derivation of amount to be transferred.--The amount to 
        be transferred under paragraph (2) may be derived from the 
        following:
                    ``(A) The apportionment of the State under section 
                104(b)(l).
                    ``(B) The apportionment of the State under section 
                104(b)(2).''.
SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING 
                          WHILE INTOXICATED OR DRIVING UNDER THE 
                          INFLUENCE.

    (a) Definitions.--Section 164(a) of title 23, United States Code, is 
amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively; and
            (3) in paragraph (4) (as so redesignated) by striking 
        subparagraph (A) and inserting the following:
                    ``(A) receive--
                          ``(i) a suspension of all driving privileges 
                      for not less than 1 year; or
                          ``(ii) a suspension of unlimited driving 
                      privileges for 1 year, allowing for the 
                      reinstatement of limited

[[Page 126 STAT. 557]]

                      driving privileges subject to restrictions and 
                      limited exemptions as established by State law, if 
                      an ignition interlock device is installed for not 
                      less than 1 year on each of the motor vehicles 
                      owned or operated, or both, by the individual;''.

    (b) Transfer of Funds.--Section 164(b) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Fiscal year 2012 and thereafter.--
                    ``(A) Reservation of funds.--On October 1, 2011, and 
                each October 1 thereafter, if a State has not enacted or 
                is not enforcing a repeat intoxicated driver law, the 
                Secretary shall reserve an amount equal to 2.5 percent 
                of the funds to be apportioned to the State on that date 
                under each of paragraphs (1) and (2) of section 104(b) 
                until the State certifies to the Secretary the means by 
                which the States will use those reserved funds among the 
                uses authorized under subparagraphs (A) and (B) of 
                paragraph (1), and paragraph (3).
                    ``(B) Transfer of funds.--As soon as practicable 
                after the date of receipt of a certification from a 
                State under subparagraph (A), the Secretary shall--
                          ``(i) transfer the reserved funds identified 
                      by the State for use as described in subparagraphs 
                      (A) and (B) of paragraph (1) to the apportionment 
                      of the State under section 402; and
                          ``(ii) release the reserved funds identified 
                      by the State as described in paragraph (3).'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Use for highway safety improvement program.--
                    ``(A) In general.--A State may elect to use all or a 
                portion of the funds transferred under paragraph (2) for 
                activities eligible under section 148.
                    ``(B) State departments of transportation.--If the 
                State makes an election under subparagraph (A), the 
                funds shall be transferred to the department of 
                transportation of the State, which shall be responsible 
                for the administration of the funds.''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Derivation of amount to be transferred.--The amount to 
        be transferred under paragraph (2) may be derived from the 
        following:
                    ``(A) The apportionment of the State under section 
                104(b)(1).
                    ``(B) The apportionment of the State under section 
                104(b)(2).''.
SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.

    (a) Vehicle Weight Limitations.--Section 127(a)(1) of title 23, 
United States Code, is amended by striking ``No funds shall be 
apportioned in any fiscal year under section 104(b)(1) of this title to 
any State which'' and inserting ``The Secretary shall withhold 50 
percent of the apportionment of a State under section 104(b)(1) in any 
fiscal year in which the State''.
    (b) Control of Junkyards.--Section 136 of title 23, United States 
Code, is amended--
            (1) in subsection (b), in the first sentence--

[[Page 126 STAT. 558]]

                    (A) by striking ``10 per centum'' and inserting ``7 
                percent''; and
                    (B) by striking ``section 104 of this title'' and 
                inserting ``paragraphs (1) through (5) of section 
                104(b)''; and
            (2) by adding at the end the following:

    ``(n) Definitions.--For purposes of this section, the terms `primary 
system' and `Federal-aid primary system' mean any highway that is on the 
National Highway System, which includes the Interstate Highway 
System.''.
    (c) Enforcement of Vehicle Size and Weight Laws.--Section 141(b)(2) 
of title 23, United States Code, is amended--
            (1) by striking ``10 per centum'' and inserting ``7 
        percent''; and
            (2) by striking ``section 104 of this title'' and inserting 
        ``paragraphs (1) through (5) of section 104(b)''.

    (d) Proof of Payment of the Heavy Vehicle Use Tax.--Section 141(c) 
of title 23, United States Code, is amended--
            (1) by striking ``section 104(b)(4)'' each place it appears 
        and inserting ``section 104(b)(1)''; and
            (2) in the first sentence by striking ``25 per centum'' and 
        inserting ``8 percent''.

    (e) Use of Safety Belts.--Section 153(h) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1);
            (3) in paragraph (1) (as so redesignated)--
                    (A) by striking the paragraph heading and inserting 
                ``Prior to fiscal year 2012''; and
                    (B) by inserting ``and before October 1, 2011,'' 
                after ``September 30, 1994,''; and
            (4) by inserting after paragraph (1) (as so redesignated) 
        the following:
            ``(2) Fiscal year 2012 and thereafter.--If, at any time in a 
        fiscal year beginning after September 30, 2011, a State does not 
        have in effect a law described in subsection (a)(2), the 
        Secretary shall transfer an amount equal to 2 percent of the 
        funds apportioned to the State for the succeeding fiscal year 
        under each of paragraphs (1) through (3) of section 104(b) to 
        the apportionment of the State under section 402.''.

    (f) National Minimum Drinking Age.--Section 158(a)(1) of title 23, 
United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) Fiscal years before 2012.--The Secretary''; 
                and
            (2) by adding at the end the following:
                    ``(B) Fiscal year 2012 and thereafter.--For fiscal 
                year 2012 and each fiscal year thereafter, the amount to 
                be withheld under this section shall be an amount equal 
                to 8 percent of the amount apportioned to the 
                noncompliant State, as described in subparagraph (A), 
                under paragraphs (1) and (2) of section 104(b).''.

    (g) Drug Offenders.--Section 159 of title 23, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph (1);

[[Page 126 STAT. 559]]

                    (C) in paragraph (1) (as so redesignated) by 
                striking ``(including any amounts withheld under 
                paragraph (1))''; and
                    (D) by inserting after paragraph (1) (as so 
                redesignated) the following:
            ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
        withhold an amount equal to 8 percent of the amount required to 
        be apportioned to any State under each of paragraphs (1) and (2) 
        of section 104(b) on the first day of each fiscal year beginning 
        after September 30, 2011, if the State fails to meet the 
        requirements of paragraph (3) on the first day of the fiscal 
        year.''; and
            (2) by striking subsection (b) and inserting the following:

    ``(b) Effect of Noncompliance.--No funds withheld under this section 
from apportionments to any State shall be available for apportionment to 
that State.''.
    (h) Zero Tolerance Blood Alcohol Concentration for Minors.--Section 
161(a) of title 23, United States Code, is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1);
            (3) in paragraph (1) (as so redesignated)--
                    (A) by striking the paragraph heading and inserting 
                ``Prior to fiscal year 2012''; and
                    (B) by inserting ``through fiscal year 2011'' after 
                ``each fiscal year thereafter''; and
            (4) by inserting after paragraph (1) (as so redesignated) 
        the following:
            ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
        withhold an amount equal to 8 percent of the amount required to 
        be apportioned to any State under each of paragraphs (1) and (2) 
        of section 104(b) on October 1, 2011, and on October 1 of each 
        fiscal year thereafter, if the State does not meet the 
        requirement of paragraph (3) on that date.''.

    (i) Operation of Motor Vehicles by Intoxicated Persons.--Section 
163(e) of title 23, United States Code, is amended by striking 
paragraphs (1) and (2) and inserting the following:
            ``(1) Fiscal years 2007 through 2011.--On October 1, 2006, 
        and October 1 of each fiscal year thereafter through fiscal year 
        2011, if a State has not enacted or is not enforcing a law 
        described in subsection (a), the Secretary shall withhold an 
        amount equal to 8 percent of the amounts to be apportioned to 
        the State on that date under each of paragraphs (1), (3), and 
        (4) of section 104(b).
            ``(2) Fiscal year 2012 and thereafter.--On October 1, 2011, 
        and October 1 of each fiscal year thereafter, if a State has not 
        enacted or is not enforcing a law described in subsection (a), 
        the Secretary shall withhold an amount equal to 6 percent of the 
        amounts to be apportioned to the State on that date under each 
        of paragraphs (1) and (2) of section 104(b).''.

    (j) Commercial Driver's License.--Section 31314 of title 49, United 
States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

    ``(c) Penalties Imposed in Fiscal Year 2012 and Thereafter.--
Effective beginning on October 1, 2011--

[[Page 126 STAT. 560]]

            ``(1) the penalty for the first instance of noncompliance by 
        a State under this section shall be not more than an amount 
        equal to 4 percent of funds required to be apportioned to the 
        noncompliant State under paragraphs (1) and (2) of section 
        104(b) of title 23; and
            ``(2) the penalty for subsequent instances of noncompliance 
        shall be not more than an amount equal to 8 percent of funds 
        required to be apportioned to the noncompliant State under 
        paragraphs (1) and (2) of section 104(b) of title 23.''.
SEC. 1405. <<NOTE: Deadline.>> HIGHWAY WORKER SAFETY.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary shall modify section 630.1108(a) of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
ensure that--
            (1) at a minimum, positive protective measures are used to 
        separate workers on highway construction projects from motorized 
        traffic in all work zones conducted under traffic in areas that 
        offer workers no means of escape (such as tunnels and bridges), 
        unless an engineering study determines otherwise;
            (2) temporary longitudinal traffic barriers are used to 
        protect workers on highway construction projects in long-
        duration stationary work zones when the project design speed is 
        anticipated to be high and the nature of the work requires 
        workers to be within 1 lane-width from the edge of a live travel 
        lane, unless--
                    (A) an analysis by the project sponsor determines 
                otherwise; or
                    (B) the project is outside of an urbanized area and 
                the annual average daily traffic load of the applicable 
                road is less than 100 vehicles per hour; and
            (3) when positive protective devices are necessary for 
        highway construction projects, those devices are paid for on a 
        unit-pay basis, unless doing so would create a conflict with 
        innovative contracting approaches, such as design-build or some 
        performance-based contracts under which the contractor is paid 
        to assume a certain risk allocation and payment is generally 
        made on a lump-sum basis.

                        Subtitle E--Miscellaneous

SEC. 1501. REAL-TIME RIDESHARING.

    Paragraph (3) of section 101(a) of title 23, United States Code (as 
redesignated by section 1103(a)(2)), is amended by striking ``and 
designating existing facilities for use for preferential parking for 
carpools'' and inserting ``designating existing facilities for use for 
preferential parking for carpools, and real-time ridesharing projects, 
such as projects where drivers, using an electronic transfer of funds, 
recover costs directly associated with the trip provided through the use 
of location technology to quantify those direct costs, subject to the 
condition that the cost recovered does not exceed the cost of the trip 
provided''.

[[Page 126 STAT. 561]]

SEC. 1502. PROGRAM EFFICIENCIES.

    The first sentence of section 102(b) of title 23, United States 
Code, is amended by striking ``made available for such engineering'' and 
inserting ``reimbursed for the preliminary engineering''.
SEC. 1503. PROJECT APPROVAL AND OVERSIGHT.

    (a) In General.--Section 106 of title 23, United States Code, is 
amended--
            (1) in subsection (a)(2) by inserting ``recipient'' before 
        ``formalizing'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) in the heading, by striking ``Non-
                      interstate'';
                          (ii) by striking ``but not on the Interstate 
                      System''; and inserting ``, including projects on 
                      the Interstate System''; and
                          (iii) by striking ``of projects'' and all that 
                      follows through the period at the end and 
                      inserting ``with respect to the projects unless 
                      the Secretary determines that the assumption is 
                      not appropriate.''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Limitation on interstate projects.--
                    ``(A) In general.--The Secretary shall not assign 
                any responsibilities to a State for projects the 
                Secretary determines to be in a high risk category, as 
                defined under subparagraph (B).
                    ``(B) High risk categories.--The Secretary may 
                define the high risk categories under this subparagraph 
                on a national basis, a State-by-State basis, or a 
                national and State-by-State basis, as determined to be 
                appropriate by the Secretary.'';
            (3) in subsection (e)--
                    (A) in paragraph (1)(A)--
                          (i) in the matter preceding clause (i)--
                                    (I) by striking ``concept'' and 
                                inserting ``planning''; and
                                    (II) by striking 
                                ``multidisciplined'' and inserting 
                                ``multidisciplinary''; and
                          (ii) by striking clause (i) and inserting the 
                      following:
                          ``(i) providing the needed functions safely, 
                      reliably, and at the lowest overall lifecycle 
                      cost;'';
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A) 
                      by striking ``or other cost-reduction analysis'';
                          (ii) in subparagraph (A)--
                                    (I) by striking ``Federal-aid 
                                system'' and inserting ``National 
                                Highway System receiving Federal 
                                assistance''; and
                                    (II) by striking ``$25,000,000'' and 
                                inserting ``$50,000,000''; and
                          (iii) in subparagraph (B)--
                                    (I) by inserting ``on the National 
                                Highway System receiving Federal 
                                assistance'' after ``a bridge project''; 
                                and

[[Page 126 STAT. 562]]

                                    (II) by striking ``$20,000,000'' and 
                                inserting ``$40,000,000''; and
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Requirements.--
                    ``(A) Value engineering program.--The State shall 
                develop and carry out a value engineering program that--
                          ``(i) establishes and documents value 
                      engineering program policies and procedures;
                          ``(ii) ensures that the required value 
                      engineering analysis is conducted before 
                      completing the final design of a project;
                          ``(iii) ensures that the value engineering 
                      analysis that is conducted, and the 
                      recommendations developed and implemented for each 
                      project, are documented in a final value 
                      engineering report; and
                          ``(iv) <<NOTE: Reports.>> monitors, evaluates, 
                      and annually submits to the Secretary a report 
                      that describes the results of the value analyses 
                      that are conducted and the recommendations 
                      implemented for each of the projects described in 
                      paragraph (2) that are completed in the State.
                    ``(B) Bridge projects.--The value engineering 
                analysis for a bridge project under paragraph (2) 
                shall--
                          ``(i) include bridge superstructure and 
                      substructure requirements based on construction 
                      material; and
                          ``(ii) be evaluated by the State--
                                    ``(I) on engineering and economic 
                                bases, taking into consideration 
                                acceptable designs for bridges; and
                                    ``(II) using an analysis of 
                                lifecycle costs and duration of project 
                                construction.
            ``(5) Design-build projects.--A requirement to provide a 
        value engineering analysis under this subsection shall not apply 
        to a project delivered using the design-build method of 
        construction.'';
            (4) in subsection (h)--
                    (A) in paragraph (1)(B) by inserting ``, including a 
                phasing plan when applicable'' after ``financial plan''; 
                and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Financial plan.--A financial plan--
                    ``(A) shall be based on detailed estimates of the 
                cost to complete the project;
                    ``(B) shall provide for the annual submission of 
                updates to the Secretary that are based on reasonable 
                assumptions, as determined by the Secretary, of future 
                increases in the cost to complete the project;
                    ``(C) may include a phasing plan that identifies 
                fundable incremental improvements or phases that will 
                address the purpose and the need of the project in the 
                short term in the event there are insufficient financial 
                resources to complete the entire project. If a phasing 
                plan is adopted for a project pursuant to this section, 
                the project shall be deemed to satisfy the fiscal 
                constraint requirements in the statewide and 
                metropolitan planning requirements in sections 134 and 
                135; and

[[Page 126 STAT. 563]]

                    ``(D) shall assess the appropriateness of a public-
                private partnership to deliver the project.''; and
            (5) by adding at the end the following:

    ``(j) Use of Advanced Modeling Technologies.--
            ``(1) Definition of advanced modeling technology.--In this 
        subsection, the term `advanced modeling technology' means an 
        available or developing technology, including 3-dimensional 
        digital modeling, that can--
                    ``(A) accelerate and improve the environmental 
                review process;
                    ``(B) increase effective public participation;
                    ``(C) enhance the detail and accuracy of project 
                designs;
                    ``(D) increase safety;
                    ``(E) accelerate construction, and reduce 
                construction costs; or
                    ``(F) otherwise expedite project delivery with 
                respect to transportation projects that receive Federal 
                funding.
            ``(2) Program.--With respect to transportation projects that 
        receive Federal funding, the Secretary shall encourage the use 
        of advanced modeling technologies during environmental, 
        planning, financial management, design, simulation, and 
        construction processes of the projects.
            ``(3) Activities.--In carrying out paragraph (2), the 
        Secretary shall--
                    ``(A) compile information relating to advanced 
                modeling technologies, including industry best practices 
                with respect to the use of the technologies;
                    ``(B) disseminate to States information relating to 
                advanced modeling technologies, including industry best 
                practices with respect to the use of the technologies; 
                and
                    ``(C) promote the use of advanced modeling 
                technologies.
            ``(4) <<NOTE: Web posting.>> Comprehensive plan.--The 
        Secretary shall develop and publish on the public website of the 
        Department of Transportation a detailed and comprehensive plan 
        for the implementation of paragraph (2).''.

    (b) Review of Oversight Program.--
            (1) In general.--The Secretary shall review the oversight 
        program established under section 106(g) of title 23, United 
        States Code, to determine the efficacy of the program in 
        monitoring the effective and efficient use of funds authorized 
        to carry out title 23, United States Code.
            (2) Minimum requirements for review.--At a minimum, the 
        review under paragraph (1) shall assess the capability of the 
        program to--
                    (A) identify projects funded under title 23, United 
                States Code, for which there are cost or schedule 
                overruns; and
                    (B) evaluate the extent of such overruns.
            (3) Report to congress.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary shall transmit to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Environment and Public 
        Works of the Senate a report on the results of the review 
        conducted under paragraph (1), which shall include

[[Page 126 STAT. 564]]

        recommendations for legislative changes to improve the oversight 
        program established under section 106(g) of title 23, United 
        States Code.

    (c) <<NOTE: 23 USC 104 note.>> Transparency and Accountability.--
            (1) <<NOTE: Web posting.>> Data collection.--The Secretary 
        shall compile and make available on the public website of the 
        Department of Transportation the annual expenditure data for 
        funds made available under title 23 and chapter 53 of title 49, 
        United States Code.
            (2) Requirements.--In carrying out paragraph (1), the 
        Secretary shall ensure that the data made available on the 
        public website of the Department of Transportation--
                    (A) is organized by project and State;
                    (B) to the maximum extent practicable, is updated 
                regularly to reflect the current status of obligations, 
                expenditures, and Federal-aid projects; and
                    (C) can be searched and downloaded by users of the 
                website.
            (3) <<NOTE: Time period.>> Report to congress.--The 
        Secretary shall annually submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works and the Committee on Banking, Housing, and Urban Affairs 
        of the Senate a report containing a summary of the data 
        described in paragraph (1) for the 1-year period ending on the 
        date on which the report is submitted.
SEC. 1504. STANDARDS.

    Section 109 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(r) Pavement Markings.--The Secretary shall not approve any 
pavement markings project that includes the use of glass beads 
containing more than 200 parts per million of arsenic or lead, as 
determined in accordance with Environmental Protection Agency testing 
methods 3052, 6010B, or 6010C.''.
SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE 
                          INTERSTATE SYSTEM.

    Section 111 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(e) Justification Reports.--If the Secretary requests or requires 
a justification report for a project that would add a point of access 
to, or exit from, the Interstate System, the Secretary may permit a 
State transportation department to approve the report.''.
SEC. 1506. CONSTRUCTION.

    Section 114(b) of title 23, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Limitation on convict labor.--Convict labor shall not 
        be used in construction of Federal-aid highways or portions of 
        Federal-aid highways unless the labor is performed by convicts 
        who are on parole, supervised release, or probation.''; and
                    (B) in paragraph (3) by inserting ``in existence 
                during that period'' after ``located on a Federal-aid 
                system''; and

[[Page 126 STAT. 565]]

            (2) by adding at the end the following:

    ``(d) Veterans Employment.---
            ``(1) <<NOTE: Contracts.>> In general.--Subject to paragraph 
        (2), a recipient of Federal financial assistance under this 
        chapter shall, to the extent practicable, encourage contractors 
        working on a highway project funded using the assistance to make 
        a best faith effort in the hiring or referral of laborers on any 
        project for the construction of a highway to veterans (as 
        defined in section 2108 of title 5) who have the requisite 
        skills and abilities to perform the construction work required 
        under the contract.
            ``(2) Administration.--This subsection shall not--
                    ``(A) apply to projects subject to section 140(d); 
                or
                    ``(B) be administered or enforced in any manner that 
                would require an employer to give a preference to any 
                veteran over any equally qualified applicant who is a 
                member of any racial or ethnic minority, a female, or 
                any equally qualified former employee.''.
SEC. 1507. MAINTENANCE.

    Section 116 of title 23, United States Code, is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Preventive maintenance.--The term `preventive 
        maintenance' includes pavement preservation programs and 
        activities.
            ``(2) Pavement preservation programs and activities.--The 
        term `pavement preservation programs and activities' means 
        programs and activities employing a network level, long-term 
        strategy that enhances pavement performance by using an 
        integrated, cost-effective set of practices that extend pavement 
        life, improve safety, and meet road user expectations.'';
            (3) in subsection (b) (as so redesignated)--
                    (A) in the first sentence, by inserting ``or other 
                direct recipient'' before ``to maintain''; and
                    (B) by striking the second sentence;
            (4) by striking subsection (c) (as so redesignated) and 
        inserting the following:

    ``(c) Agreement.--In any State in which the State transportation 
department or other direct recipient is without legal authority to 
maintain a project described in subsection (b), the transportation 
department or direct recipient shall enter into a formal agreement with 
the appropriate officials of the county or municipality in which the 
project is located to provide for the maintenance of the project.''; and
            (5) in the first sentence of subsection (d) (as so 
        redesignated) by inserting ``or other direct recipient'' after 
        ``State transportation department''.
SEC. 1508. FEDERAL SHARE PAYABLE.

    Section 120 of title 23, United States Code, is amended--
            (1) in the first sentence of subsection (c)(1)--
                    (A) by inserting ``maintaining minimum levels of 
                retroreflectivity of highway signs or pavement 
                markings,'' after ``traffic control signalization,'';

[[Page 126 STAT. 566]]

                    (B) by inserting ``shoulder and centerline rumble 
                strips and stripes,'' after ``pavement marking,''; and
                    (C) by striking ``Federal-aid systems'' and 
                inserting ``Federal-aid programs'';
            (2) by striking subsection (e) and inserting the following:

    ``(e) Emergency Relief.--The Federal share payable for any repair or 
reconstruction provided for by funds made available under section 125 
for any project on a Federal-aid highway, including the Interstate 
System, shall not exceed the Federal share payable on a project on the 
system as provided in subsections (a) and (b), except that--
            ``(1) <<NOTE: Time period.>> the Federal share payable for 
        eligible emergency repairs to minimize damage, protect 
        facilities, or restore essential traffic accomplished within 180 
        days after the actual occurrence of the natural disaster or 
        catastrophic failure may amount to 100 percent of the cost of 
        the repairs;
            ``(2) the Federal share payable for any repair or 
        reconstruction of Federal land transportation facilities, 
        Federal land access transportation facilities, and tribal 
        transportation facilities may amount to 100 percent of the cost 
        of the repair or reconstruction;
            ``(3) <<NOTE: Extension.>> the Secretary shall extend the 
        time period in paragraph (1) taking into consideration any delay 
        in the ability of the State to access damaged facilities to 
        evaluate damage and the cost of repair; and
            ``(4) the Federal share payable for eligible permanent 
        repairs to restore damaged facilities to predisaster condition 
        may amount to 90 percent of the cost of the repairs if the 
        eligible expenses incurred by the State due to natural disasters 
        or catastrophic failures in a Federal fiscal year exceeds the 
        annual apportionment of the State under section 104 for the 
        fiscal year in which the disasters or failures occurred.'';
            (3) by striking subsection (g) and redesignating subsections 
        (h) through (l) as subsections (g) through (k), respectively;
            (4) in subsection (i)(1)(A) (as redesignated by paragraph 
        (3)) by striking ``and the Appalachian development highway 
        system program under section 14501 of title 40''; and
            (5) by striking subsections (j) and (k) (as redesignated by 
        paragraph (3)) and inserting the following:

    ``(j) Use of Federal Agency Funds.--Notwithstanding any other 
provision of law, any Federal funds other than those made available 
under this title and title 49 may be used to pay the non-Federal share 
of the cost of any transportation project that is within, adjacent to, 
or provides access to Federal land, the Federal share of which is funded 
under this title or chapter 53 of title 49.
    ``(k) Use of Federal Land and Tribal Transportation Funds.--
Notwithstanding any other provision of law, the funds authorized to be 
appropriated to carry out the tribal transportation program under 
section 202 and the Federal lands transportation program under section 
203 may be used to pay the non-Federal share of the cost of any project 
that is funded under this title or chapter 53 of title 49 and that 
provides access to or within Federal or tribal land.''.

[[Page 126 STAT. 567]]

SEC. 1509. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.

    (a) In General.--Section 126 of title 23, United States Code, is 
amended to read as follows:
``Sec. 126. Transferability of Federal-aid highway funds

    ``(a) In General.--Notwithstanding any other provision of law, 
subject to subsection (b), a State may transfer from an apportionment 
under section 104(b) not to exceed 50 percent of the amount apportioned 
for the fiscal year to any other apportionment of the State under that 
section.
    ``(b) Application to Certain Set-asides.--
            ``(1) In general.--Funds that are subject to sections 104(d) 
        and 133(d) shall not be transferred under this section.
            ``(2) Funds transferred by states.--Funds transferred by a 
        State under this section of the funding reserved for the State 
        under section 213 for a fiscal year may only come from the 
        portion of those funds that are available for obligation in any 
        area of the State under section 213(c)(1)(B).''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
126 and inserting the following:

``126. Transferability of Federal-aid highway funds.''.

SEC. 1510. IDLE REDUCTION TECHNOLOGY.

    Section 127(a)(12) of title 23, United States Code, is amended--
            (1) in subparagraph (B), by striking ``400'' and inserting 
        ``550''; and
            (2) in subparagraph (C)(ii), by striking ``400-pound'' and 
        inserting ``550-pound''.
SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.

    Section 127 of title 23, United States Code, is amended by inserting 
at the end the following:
    ``(i) Special Permits During Periods of National Emergency.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, a State may issue special permits during an 
        emergency to overweight vehicles and loads that can easily be 
        dismantled or divided if--
                    ``(A) the President has declared the emergency to be 
                a major disaster under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.);
                    ``(B) the permits are issued in accordance with 
                State law; and
                    ``(C) the permits are issued exclusively to vehicles 
                and loads that are delivering relief supplies.
            ``(2) Expiration.--A permit issued under paragraph (1) shall 
        expire not later than 120 days after the date of the declaration 
        of emergency under subparagraph (A) of that paragraph.''.
SEC. 1512. TOLLING.

    (a) Amendment to Tolling Provision.--Section 129(a) of title 23, 
United States Code, is amended to read as follows:
    ``(a) Basic Program.--

[[Page 126 STAT. 568]]

            ``(1) Authorization for federal participation.--Subject to 
        the provisions of this section, Federal participation shall be 
        permitted on the same basis and in the same manner as 
        construction of toll-free highways is permitted under this 
        chapter in the--
                    ``(A) initial construction of a toll highway, 
                bridge, or tunnel or approach to the highway, bridge, or 
                tunnel;
                    ``(B) initial construction of 1 or more lanes or 
                other improvements that increase capacity of a highway, 
                bridge, or tunnel (other than a highway on the 
                Interstate System) and conversion of that highway, 
                bridge, or tunnel to a tolled facility, if the number of 
                toll-free lanes, excluding auxiliary lanes, after the 
                construction is not less than the number of toll-free 
                lanes, excluding auxiliary lanes, before the 
                construction;
                    ``(C) initial construction of 1 or more lanes or 
                other improvements that increase the capacity of a 
                highway, bridge, or tunnel on the Interstate System and 
                conversion of that highway, bridge, or tunnel to a 
                tolled facility, if the number of toll-free non-HOV 
                lanes, excluding auxiliary lanes, after such 
                construction is not less than the number of toll-free 
                non-HOV lanes, excluding auxiliary lanes, before such 
                construction;
                    ``(D) reconstruction, resurfacing, restoration, 
                rehabilitation, or replacement of a toll highway, 
                bridge, or tunnel or approach to the highway, bridge, or 
                tunnel;
                    ``(E) reconstruction or replacement of a toll-free 
                bridge or tunnel and conversion of the bridge or tunnel 
                to a toll facility;
                    ``(F) reconstruction of a toll-free Federal-aid 
                highway (other than a highway on the Interstate System) 
                and conversion of the highway to a toll facility;
                    ``(G) reconstruction, restoration, or rehabilitation 
                of a highway on the Interstate System if the number of 
                toll-free non-HOV lanes, excluding auxiliary lanes, 
                after reconstruction, restoration, or rehabilitation is 
                not less than the number of toll-free non-HOV lanes, 
                excluding auxiliary lanes, before reconstruction, 
                restoration, or rehabilitation;
                    ``(H) conversion of a high occupancy vehicle lane on 
                a highway, bridge, or tunnel to a toll facility; and
                    ``(I) preliminary studies to determine the 
                feasibility of a toll facility for which Federal 
                participation is authorized under this paragraph.
            ``(2) Ownership.--Each highway, bridge, tunnel, or approach 
        to the highway, bridge, or tunnel constructed under this 
        subsection shall--
                    ``(A) be publicly owned; or
                    ``(B) be privately owned if the public authority 
                with jurisdiction over the highway, bridge, tunnel, or 
                approach has entered into a contract with 1 or more 
                private persons to design, finance, construct, and 
                operate the facility and the public authority will be 
                responsible for complying with all applicable 
                requirements of this title with respect to the facility.
            ``(3) Limitations on use of revenues.--

[[Page 126 STAT. 569]]

                    ``(A) In general.--A public authority with 
                jurisdiction over a toll facility shall use all toll 
                revenues received from operation of the toll facility 
                only for--
                          ``(i) debt service with respect to the 
                      projects on or for which the tolls are authorized, 
                      including funding of reasonable reserves and debt 
                      service on refinancing;
                          ``(ii) a reasonable return on investment of 
                      any private person financing the project, as 
                      determined by the State or interstate compact of 
                      States concerned;
                          ``(iii) any costs necessary for the 
                      improvement and proper operation and maintenance 
                      of the toll facility, including reconstruction, 
                      resurfacing, restoration, and rehabilitation;
                          ``(iv) if the toll facility is subject to a 
                      public-private partnership agreement, payments 
                      that the party holding the right to toll revenues 
                      owes to the other party under the public-private 
                      partnership agreement; and
                          ``(v) if the public authority certifies 
                      annually that the tolled facility is being 
                      adequately maintained, any other purpose for which 
                      Federal funds may be obligated by a State under 
                      this title.
                    ``(B) Annual audit.--
                          ``(i) In general.--A public authority with 
                      jurisdiction over a toll facility shall conduct or 
                      have an independent auditor conduct an annual 
                      audit of toll facility records to verify adequate 
                      maintenance and compliance with subparagraph (A), 
                      and report the results of the audits to the 
                      Secretary.
                          ``(ii) Records.--On reasonable notice, the 
                      public authority shall make all records of the 
                      public authority pertaining to the toll facility 
                      available for audit by the Secretary.
                    ``(C) Noncompliance.--If the Secretary concludes 
                that a public authority has not complied with the 
                limitations on the use of revenues described in 
                subparagraph (A), the Secretary may require the public 
                authority to discontinue collecting tolls until an 
                agreement with the Secretary is reached to achieve 
                compliance with the limitation on the use of revenues 
                described in subparagraph (A).
            ``(4) Limitations on conversion of high occupancy vehicle 
        facilities on interstate system.--
                    ``(A) In general.--A public authority with 
                jurisdiction over a high occupancy vehicle facility on 
                the Interstate System may undertake reconstruction, 
                restoration, or rehabilitation under paragraph (1)(G) on 
                the facility, and may levy tolls on vehicles, excluding 
                high occupancy vehicles, using the reconstructed, 
                restored, or rehabilitated facility, if the public 
                authority--
                          ``(i) in the case of a high occupancy vehicle 
                      facility that affects a metropolitan area, submits 
                      to the Secretary a written assurance that the 
                      metropolitan planning organization designated 
                      under section 5203 of title 49 for the area has 
                      been consulted concerning the placement and amount 
                      of tolls on the converted facility;

[[Page 126 STAT. 570]]

                          ``(ii) develops, manages, and maintains a 
                      system that will automatically collect the toll; 
                      and
                          ``(iii) establishes policies and procedures--
                                    ``(I) to manage the demand to use 
                                the facility by varying the toll amount 
                                that is charged; and
                                    ``(II) to enforce sanctions for 
                                violations of use of the facility.
                    ``(B) Exemption from tolls.--In levying tolls on a 
                facility under subparagraph (A), a public authority may 
                designate classes of vehicles that are exempt from the 
                tolls or charge different toll rates for different 
                classes of vehicles.
            ``(5) Special rule for funding.--
                    ``(A) In general.--In the case of a toll facility 
                under the jurisdiction of a public authority of a State 
                (other than the State transportation department), on 
                request of the State transportation department and 
                subject to such terms and conditions as the department 
                and public authority may agree, the Secretary, working 
                through the State department of transportation, shall 
                reimburse the public authority for the Federal share of 
                the costs of construction of the project carried out on 
                the toll facility under this subsection in the same 
                manner and to the same extent as the department would be 
                reimbursed if the project was being carried out by the 
                department.
                    ``(B) Source.--The reimbursement of funds under this 
                paragraph shall be from sums apportioned to the State 
                under this chapter and available for obligations on 
                projects on the Federal-aid system in the State on which 
                the project is being carried out.
            ``(6) Limitation on federal share.--The Federal share 
        payable for a project described in paragraph (1) shall be a 
        percentage determined by the State, but not to exceed 80 
        percent.
            ``(7) Modifications.--If a public authority (including a 
        State transportation department) with jurisdiction over a toll 
        facility subject to an agreement under this section or section 
        119(e), as in effect on the day before the effective date of 
        title I of the Intermodal Surface Transportation Efficiency Act 
        of 1991 (105 Stat. 1915), requests modification of the 
        agreement, the Secretary shall modify the agreement to allow the 
        continuation of tolls in accordance with paragraph (3) without 
        repayment of Federal funds.
            ``(8) Loans.--
                    ``(A) In general.--
                          ``(i) Loans.--Using amounts made available 
                      under this title, a State may loan to a public or 
                      private entity constructing or proposing to 
                      construct under this section a toll facility or 
                      non-toll facility with a dedicated revenue source 
                      an amount equal to all or part of the Federal 
                      share of the cost of the project if the project 
                      has a revenue source specifically dedicated to the 
                      project.
                          ``(ii) Dedicated revenue sources.--Dedicated 
                      revenue sources for non-toll facilities include 
                      excise taxes, sales taxes, motor vehicle use fees, 
                      tax on real

[[Page 126 STAT. 571]]

                      property, tax increment financing, and such other 
                      dedicated revenue sources as the Secretary 
                      determines appropriate.
                    ``(B) Compliance with federal laws.--As a condition 
                of receiving a loan under this paragraph, the public or 
                private entity that receives the loan shall ensure that 
                the project will be carried out in accordance with this 
                title and any other applicable Federal law, including 
                any applicable provision of a Federal environmental law.
                    ``(C) Subordination of debt.--The amount of any loan 
                received for a project under this paragraph may be 
                subordinated to any other debt financing for the 
                project.
                    ``(D) Obligation of funds loaned.--Funds loaned 
                under this paragraph may only be obligated for projects 
                under this paragraph.
                    ``(E) Repayment.--The repayment of a loan made under 
                this paragraph shall commence not later than 5 years 
                after date on which the facility that is the subject of 
                the loan is open to traffic.
                    ``(F) Term of loan.--The term of a loan made under 
                this paragraph shall not exceed 30 years from the date 
                on which the loan funds are obligated.
                    ``(G) Interest.--A loan made under this paragraph 
                shall bear interest at or below market interest rates, 
                as determined by the State, to make the project that is 
                the subject of the loan feasible.
                    ``(H) Reuse of funds.--Amounts repaid to a State 
                from a loan made under this paragraph may be obligated--
                          ``(i) for any purpose for which the loan funds 
                      were available under this title; and
                          ``(ii) for the purchase of insurance or for 
                      use as a capital reserve for other forms of credit 
                      enhancement for project debt in order to improve 
                      credit market access or to lower interest rates 
                      for projects eligible for assistance under this 
                      title.
                    ``(I) Guidelines.--The Secretary shall establish 
                procedures and guidelines for making loans under this 
                paragraph.
            ``(9) State law permitting tolling.--If a State does not 
        have a highway, bridge, or tunnel toll facility as of the date 
        of enactment of the MAP-21, before commencing any activity 
        authorized under this section, the State shall have in effect a 
        law that permits tolling on a highway, bridge, or tunnel.
            ``(10) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) High occupancy vehicle; hov.--The term `high 
                occupancy vehicle' or `HOV' means a vehicle with not 
                fewer than 2 occupants.
                    ``(B) Initial construction.--
                          ``(i) In general.--The term `initial 
                      construction' means the construction of a highway, 
                      bridge, tunnel, or other facility at any time 
                      before it is open to traffic.
                          ``(ii) Exclusions.--The term `initial 
                      construction' does not include any improvement to 
                      a highway, bridge, tunnel, or other facility after 
                      it is open to traffic.

[[Page 126 STAT. 572]]

                    ``(C) Public authority.--The term `public authority' 
                means a State, interstate compact of States, or public 
                entity designated by a State.
                    ``(D) Toll facility.--The term `toll facility' means 
                a toll highway, bridge, or tunnel or approach to the 
                highway, bridge, or tunnel constructed under this 
                subsection.''.

    (b) <<NOTE: Deadline. 23 USC 129 note.>> Electronic Toll Collection 
Interoperability Requirements.--Not later than 4 years after the date of 
enactment of this Act, all toll facilities on the Federal-aid highways 
shall implement technologies or business practices that provide for the 
interoperability of electronic toll collection programs.
SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS.

    (a) Fringe and Corridor Parking Facilities.--Section 137 of title 
23, United States Code, is amended--
            (1) in subsection (f)(1)--
                    (A) by striking ``104(b)(4)'' and inserting 
                ``104(b)(1)''; and
                    (B) by inserting ``including the addition of 
                electric vehicle charging stations or natural gas 
                vehicle refueling stations,'' after ``new facilities,''; 
                and
            (2) by adding at the end the following:

    ``(g) Funding.--The addition of electric vehicle charging stations 
or natural gas vehicle refueling stations to new or previously funded 
parking facilities shall be eligible for funding under this section.''.
    (b) Public Transportation.--Section 142(a)(1) of title 23, United 
States Code, is amended by inserting ``, which may include electric 
vehicle charging stations or natural gas vehicle refueling stations,'' 
after ``parking facilities''.
    (c) Forest Development Roads and Trails.--Section 205(d) of title 
23, United States Code, is amended by inserting ``, which may include 
electric vehicle charging stations or natural gas vehicle refueling 
stations,'' after ``parking areas''.
SEC. 1514. HOV FACILITIES.

    Section 166 of title 23, United States Code, is amended--
            (1) in subsection (b)(5)--
                    (A) in subparagraph (A) by striking ``2009'' and 
                inserting ``2017'';
                    (B) in subparagraph (B) by striking ``2009'' and 
                inserting ``2017''; and
                    (C) in subparagraph (C)--
                          (i) by striking ``subparagraph (B)'' and 
                      inserting ``this paragraph''; and
                          (ii) by inserting ``or equal to'' after ``less 
                      than'';
            (2) in subsection (c) by striking paragraph (3) and 
        inserting the following:
            ``(3) Toll revenue.--Toll revenue collected under this 
        section is subject to the requirements of section 129(a)(3).''; 
        and
            (3) in subsection (d)(1)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``in a fiscal year shall 
                      certify'' and inserting ``shall submit to the 
                      Secretary a report demonstrating that the facility 
                      is not already degraded, and that the presence of 
                      the vehicles will not cause the facility to become 
                      degraded, and certify''; and
                          (ii) by striking ``in the fiscal year'';

[[Page 126 STAT. 573]]

                    (B) in subparagraph (A) by inserting ``and 
                submitting to the Secretary annual reports of those 
                impacts'' after ``adjacent highways'';
                    (C) in subparagraph (C) by striking ``if the 
                presence of the vehicles has degraded the operation of 
                the facility'' and inserting ``whenever the operation of 
                the facility is degraded''; and
                    (D) by adding at the end the following:
                    ``(D) <<NOTE: Deadline.>> Maintenance of operating 
                performance.--Not later than 180 days after the date on 
                which a facility is degraded pursuant to the standard 
                specified in paragraph (2), the State agency with 
                jurisdiction over the facility shall bring the facility 
                into compliance with the minimum average operating speed 
                performance standard through changes to operation of the 
                facility, including--
                          ``(i) increasing the occupancy requirement for 
                      HOV lanes;
                          ``(ii) varying the toll charged to vehicles 
                      allowed under subsection (b) to reduce demand;
                          ``(iii) discontinuing allowing non-HOV 
                      vehicles to use HOV lanes under subsection (b); or
                          ``(iv) increasing the available capacity of 
                      the HOV facility.
                    ``(E) Compliance.--If the State fails to bring a 
                facility into compliance under subparagraph (D), the 
                Secretary shall subject the State to appropriate program 
                sanctions under section 1.36 of title 23, Code of 
                Federal Regulations (or successor regulations), until 
                the performance is no longer degraded.''.
SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION EMERGENCIES.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1311(a)), is amended by adding at the end the 
following:
``Sec. 170. Funding flexibility for transportation emergencies

    ``(a) In General.--Notwithstanding any other provision of law, a 
State may use up to 100 percent of any covered funds of the State to 
repair or replace a transportation facility that has suffered serious 
damage as a result of a natural disaster or catastrophic failure from an 
external cause.
    ``(b) Declaration of Emergency.--Funds may be used under this 
section only for a disaster or emergency declared by the President 
pursuant to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).
    ``(c) Repayment.--Funds used under subsection (a) shall be repaid to 
the program from which the funds were taken in the event that such 
repairs or replacement are subsequently covered by a supplemental 
appropriation of funds.
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Covered funds.--The term `covered funds' means any 
        amounts apportioned to a State under section 104(b), other than 
        amounts suballocated to metropolitan areas and other areas of 
        the State under section 133(d), but including any such amounts 
        required to be set aside for a purpose other

[[Page 126 STAT. 574]]

        than the repair or replacement of a transportation facility 
        under this section.
            ``(2) Transportation facility.--The term `transportation 
        facility' means any facility eligible for assistance under 
        section 125.''.

    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1311(b)), is 
amended by adding at the end the following:

``170. Funding flexibility for transportation emergencies.''.

SEC. 1516. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO ADDRESS 
                          TRANSPORTATION INFRASTRUCTURE IN THE 
                          VICINITY OF MILITARY INSTALLATIONS.

    The second sentence of section 210(a)(2) of title 23, United States 
Code, is amended by inserting ``, in consultation with the Secretary of 
Transportation,'' before ``shall determine''.
SEC. 1517. MAPPING.

    (a) In General.--Section 306 of title 23, United States Code, is 
amended--
            (1) in subsection (a) by striking ``may'' and inserting 
        ``shall'';
            (2) in subsection (b) in the second sentence by striking 
        ``State and'' and inserting ``State government and''; and
            (3) by adding at the end the following:

    ``(c) <<NOTE: Compliance process.>> Implementation.--The Secretary 
shall develop a process for the oversight and monitoring, on an annual 
basis, of the compliance of each State with the guidance issued under 
subsection (b).''.

    (b) <<NOTE: Deadline.>> Survey.--Not later than 2 years after the 
date of enactment of this Act, the Secretary shall conduct a survey of 
all States to determine what percentage of projects carried out under 
title 23, United States Code, in each State utilize private sector 
sources for surveying and mapping services.
SEC. 1518. BUY AMERICA PROVISIONS.

    Section 313 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(g) Application to Highway Programs.--The requirements under this 
section shall apply to all contracts eligible for assistance under this 
chapter for a project carried out within the scope of the applicable 
finding, determination, or decision under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding 
source of such contracts, if at least 1 contract for the project is 
funded with amounts made available to carry out this title.''.
SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE 
                          PROVISIONS.

    (a) Consolidation of Programs.--From administrative funds made 
available under section 104(a) of title 23, United States Code, not less 
than $3,000,000 for each of fiscal years 2013 and 2014 shall be made 
available--
            (1) to carry out safety-related activities, including--
                    (A) to carry out the operation lifesaver program--
                          (i) to provide public information and 
                      education programs to help prevent and reduce 
                      motor vehicle accidents, injuries, and fatalities; 
                      and
                          (ii) to improve driver performance at railway-
                      highway crossings; and

[[Page 126 STAT. 575]]

                    (B) to provide work zone safety grants in accordance 
                with subsections (a) and (b) of section 1409 of the 
                SAFETEA-LU (23 U.S.C. 401 note; 119 Stat. 1232); and
            (2) to operate authorized safety-related clearinghouses, 
        including--
                    (A) the national work zone safety information 
                clearinghouse authorized by section 358(b)(2) of the 
                National Highway System Designation Act of 1995 (23 
                U.S.C. 401 note; 109 Stat. 625); and
                    (B) a public road safety clearinghouse in accordance 
                with section 1411(a) of the SAFETEA-LU (23 U.S.C. 402 
                note; 119 Stat. 1234).

    (b) Repeals.--
            (1) Title 23.--
                    (A) In general.--Sections 105, 110, 117, 124, 151, 
                155, 157, 160, 212, 216, 303, and 309 of title 23, 
                United States Code, are repealed.
                    (B) Set asides.--Section 118 of title 23, United 
                States Code, is amended--
                          (i) by striking subsection (c); and
                          (ii) by redesignating subsections (d) and (e) 
                      as subsections (c) and (d), respectively.
            (2) SAFETEA-LU.--Sections 1302, 1305, 1306, 1803, 1804, 
        1907, and 1958 of SAFETEA-LU <<NOTE: 23 USC 101 note, 103 note, 
        137 note, 144 note.>> (Public Law 109-59) are repealed.
            (3) Additional.--Section 1132 of the Energy Independence and 
        Security Act of 2007 (Public Law 110-140; 121 Stat. 1763) is 
        repealed.

    (c) Conforming Amendments.--
            (1) Title analysis.--
                    (A) Chapter 1.--The analysis for chapter 1 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 105, 110, 117, 124, 151, 155, 157, 
                and 160.
                    (B) Chapter 2.--The analysis for chapter 2 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 212 and 216.
                    (C) Chapter 3.--The analysis for chapter 3 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 303 and 309.
            (2) Table of contents.--The table of contents contained in 
        section 1(b) of SAFETEA-LU (Public Law 109-59; 119 Stat. 1144) 
        is amended by striking the items relating to sections 1302, 
        1305, 1306, 1803, 1804, 1907, and 1958.
            (3) Section 104.--Section 104(e) of title 23, United States 
        Code, is amended by striking ``, 105,''.
            (4) Section 109.--Section 109(q) of title 23, United States 
        Code, is amended by striking ``in accordance with section 303 
        or''.
            (5) Section 118.--Section 118(b) of title 23, United States 
        Code, is amended--
                    (A) by striking paragraph (1) and all that follows 
                through the heading of paragraph (2); and
                    (B) by striking ``(other than for Interstate 
                construction)''.
            (6) Section 130.--Section 130 of title 23, United States 
        Code, is amended--

[[Page 126 STAT. 576]]

                    (A) in subsection (e) by striking ``section 
                104(b)(5)'' and inserting ``section 104(b)(3)'';
                    (B) in subsection (f)(1) by inserting ``as in effect 
                on the day before the date of enactment of the MAP-21'' 
                after ``section 104(b)(3)(A)''; and
                    (C) in subsection (l) by striking paragraphs (3) and 
                (4).
            (7) Section 131.--Section 131(m) of title 23, United States 
        Code, is amended by striking ``Subject to approval by the 
        Secretary in accordance with the program of projects approval 
        process of section 105, a State'' and inserting ``A State''.
            (8) Section 133.--Paragraph (13) of section 133(b) of title 
        23, United States Code (as amended by section 1108(a)(3)), is 
        amended by striking ``under section 303.''
            (9) Section 142.--Section 142 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) by striking ``motor vehicles 
                                (other than rail)'' and inserting 
                                ``buses'';
                                    (II) by striking ``(hereafter in 
                                this section referred to as `buses')'';
                                    (III) by striking ``Federal-aid 
                                systems'' and inserting ``Federal-aid 
                                highways''; and
                                    (IV) by striking ``Federal-aid 
                                system'' and inserting ``Federal-aid 
                                highway''; and
                          (ii) in paragraph (2)--
                                    (I) by striking ``as a project on 
                                the the surface transportation program 
                                for''; and
                                    (II) by striking ``section 
                                104(b)(3)'' and inserting ``section 
                                104(b)(2)'';
                    (B) in subsection (b) by striking ``104(b)(4)'' and 
                inserting ``104(b)(1)'';
                    (C) in subsection (c)--
                          (i) by striking ``system'' in each place it 
                      appears and inserting ``highway''; and
                          (ii) by striking ``highway facilities'' and 
                      inserting ``highways eligible under the program 
                      that is the source of the funds'';
                    (D) in subsection (e)(2) by striking 
                ``Notwithstanding section 209(f)(1) of the Highway 
                Revenue Act of 1956, the Highway Trust Fund shall be 
                available for making expenditures to meet obligations 
                resulting from projects authorized by subsection (a)(2) 
                of this section and such projects'' and inserting 
                ``Projects authorized by subsection (a)(2)''; and
                    (E) in subsection (f) by striking ``exits'' and 
                inserting ``exists''.
            (10) Section 145.--Section 145(b) of title 23, United States 
        Code, is amended by striking ``section 117 of this title,''.
            (11) Section 218.--Section 218 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a)--
                          (i) by striking the first two sentences;
                          (ii) in the third sentence--
                                    (I) by striking ``, in addition to 
                                such funds,''; and
                                    (II) by striking ``such highway 
                                or'';

[[Page 126 STAT. 577]]

                          (iii) by striking the fourth sentence and 
                      fifth sentences;
                    (B) by striking subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b).
            (12) Section 610.--Section 610(d)(1)(B) of title 23, United 
        States Code, is amended by striking ``under section 105''.
SEC. 1520. DENALI COMMISSION.

    The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is amended--
            (1) in section 305, by striking subsection (c) and inserting 
        the following:

    ``(c) Gifts.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Commission, on behalf of the United States, may accept use, and 
        dispose of gifts or donations of services, property, or money 
        for purposes of carrying out this Act.
            ``(2) Conditional.--With respect to conditional gifts--
                    ``(A)(i) the Commission, on behalf of the United 
                States, may accept conditional gifts for purposes of 
                carrying out this Act, if approved by the Federal 
                Cochairperson; and
                    ``(ii) the principal of and income from any such 
                conditional gift shall be held, invested, reinvested, 
                and used in accordance with the condition applicable to 
                the gift; but
                    ``(B) no gift shall be accepted that is conditioned 
                on any expenditure not to be funded from the gift or 
                from the income generated by the gift unless the 
                expenditure has been approved by Act of Congress.''; and
            (2) by adding at the end the following:
``SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.

    ``(a) In General.--Subject to subsection (c), for purposes of this 
Act, the Commission may accept transfers of funds from other Federal 
agencies.
    ``(b) Transfers.--Any Federal agency authorized to carry out an 
activity that is within the authority of the Commission may transfer to 
the Commission any appropriated funds for the activity.
    ``(c) Treatment.--Any funds transferred to the Commission under this 
subsection--
            ``(1) shall remain available until expended; and
            ``(2) may, to the extent necessary to carry out this Act, be 
        transferred to, and merged with, the amounts made available by 
        appropriations Acts for the Commission by the Federal 
        Cochairperson.''.
SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY 
                          ACQUISITION POLICIES ACT OF 1970 
                          AMENDMENTS.

    (a) Moving and Related Expenses.--Section 202 of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 1970 
(42 U.S.C. 4622) is amended--
            (1) in subsection (a)(4) by striking ``$10,000'' and 
        inserting ``$25,000, as adjusted by regulation, in accordance 
        with section 213(d)''; and
            (2) in the second sentence of subsection (c) by striking 
        ``$20,000'' and inserting ``$40,000, as adjusted by regulation, 
        in accordance with section 213(d)''.

[[Page 126 STAT. 578]]

    (b) Replacement Housing for Homeowners.--The first sentence of 
section 203(a)(1) of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (42 U.S.C. 4623(a)(1)) is amended--
            (1) by striking ``$22,500'' and inserting ``$31,000, as 
        adjusted by regulation, in accordance with 213(d),''; and
            (2) by striking ``one hundred and eighty days prior to'' and 
        inserting ``90 days before''.

    (c) Replacement Housing for Tenants and Certain Others.--Section 204 
of the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4624) is amended--
            (1) in the second sentence of subsection (a) by striking 
        ``$5,250'' and inserting ``$7,200, as adjusted by regulation, in 
        accordance with section 213(d)''; and
            (2) in the second sentence of subsection (b) by striking ``, 
        except'' and all that follows through the end of the subsection 
        and inserting a period.

    (d) Duties of Lead Agency.--Section 213 of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 
4633) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2) by striking ``and'' at the end;
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) that each Federal agency that has programs or projects 
        requiring the acquisition of real property or causing a 
        displacement from real property subject to the provisions of 
        this Act shall provide to the lead agency an annual summary 
        report the describes the activities conducted by the Federal 
        agency.''; and
            (2) by adding at the end the following:

    ``(d) Adjustment of Payments.--The head of the lead agency may 
adjust, by regulation, the amounts of relocation payments provided under 
sections 202(a)(4), 202(c), 203(a), and 204(a) if the head of the lead 
agency determines that cost of living, inflation, or other factors 
indicate that the payments should be adjusted to meet the policy 
objectives of this Act.''.
    (e) Agency Coordination.--Title II of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 is amended 
by inserting after section 213 (42 U.S.C. 4633) the following:
``SEC. 214. <<NOTE: 42 USC 4634.>> AGENCY COORDINATION.

    ``(a) Agency Capacity.--Each Federal agency responsible for funding 
or carrying out relocation and acquisition activities shall have 
adequately trained personnel and such other resources as are necessary 
to manage and oversee the relocation and acquisition program of the 
Federal agency in accordance with this Act.
    ``(b) <<NOTE: Deadline. Memorandum.>> Interagency Agreements.--Not 
later than 1 year after the date of enactment of this section, each 
Federal agency responsible for funding relocation and acquisition 
activities (other than the agency serving as the lead agency) shall 
enter into a memorandum of understanding with the lead agency that--
            ``(1) provides for periodic training of the personnel of the 
        Federal agency, which in the case of a Federal agency that

[[Page 126 STAT. 579]]

        provides Federal financial assistance, may include personnel of 
        any displacing agency that receives Federal financial 
        assistance;
            ``(2) addresses ways in which the lead agency may provide 
        assistance and coordination to the Federal agency relating to 
        compliance with the Act on a program or project basis; and
            ``(3) addresses the funding of the training, assistance, and 
        coordination activities provided by the lead agency, in 
        accordance with subsection (c).

    ``(c) Interagency Payments.--
            ``(1) In general.--For the fiscal year that begins 1 year 
        after the date of enactment of this section, and each fiscal 
        year thereafter, each Federal agency responsible for funding 
        relocation and acquisition activities (other than the agency 
        serving as the lead agency) shall transfer to the lead agency 
        for the fiscal year, such funds as are necessary, but not less 
        than $35,000, to support the training, assistance, and 
        coordination activities of the lead agency described in 
        subsection (b).
            ``(2) Included costs.--The cost to a Federal agency of 
        providing the funds described in paragraph (1) shall be included 
        as part of the cost of 1 or more programs or projects undertaken 
        by the Federal agency or with Federal financial assistance that 
        result in the displacement of persons or the acquisition of real 
        property.''.

    (f) Cooperation With Federal Agencies.--Section 308 of title 23, 
United States Code, is amended by striking subsection (a) and inserting 
the following:
    ``(a) Authorized Activities.--
            ``(1) In general.--The Secretary may perform, by contract or 
        otherwise, authorized engineering or other services in 
        connection with the survey, construction, maintenance, or 
        improvement of highways for other Federal agencies, cooperating 
        foreign countries, and State cooperating agencies.
            ``(2) Inclusions.--Services authorized under paragraph (1) 
        may include activities authorized under section 214 of the 
        Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970.
            ``(3) Reimbursement.--Reimbursement for services carried out 
        under this subsection (including depreciation on engineering and 
        road-building equipment) shall be credited to the applicable 
        appropriation.''.

    (g) <<NOTE: 23 USC 308 note.>> Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date of 
        enactment of this Act.
            (2) Exception.--The amendments made by subsections (a) 
        through (c) shall take effect 2 years after the date of 
        enactment of this Act.
SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
                          WEIGHT RESTRICTIONS.

    Section 1023(h) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 127 note; Public Law 102-240) is amended--
            (1) in the heading of paragraph (1) by striking ``temporary 
        exemption'' and inserting ``exemption'';
            (2) in paragraph (1)--

[[Page 126 STAT. 580]]

                    (A) in the matter preceding subparagraph (A) by 
                striking ``, for the period beginning on October 6, 
                1992, and ending on October 1, 2009,'';
                    (B) in subparagraph (A) by striking ``or'' at the 
                end;
                    (C) in subparagraph (B) by striking the period at 
                the end and inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(C) any motor home (as defined in section 571.3 of 
                title 49, Code of Federal Regulations (or successor 
                regulation)).''; and
            (3) in paragraph (2)(A) by striking ``For the period 
        beginning on the date of enactment of this subparagraph and 
        ending on September 30, 2009, a'' and inserting ``A''.
SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

    Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119 Stat. 
1459) is amended by striking ``highway bridge replacement and 
rehabilitation program under section 144'' and inserting ``national 
highway performance program under section 119''.
SEC. 1524. <<NOTE: 23 USC 206 note.>> USE OF YOUTH SERVICE AND 
                          CONSERVATION CORPS.

    (a) <<NOTE: Contracts.>> In General.--The Secretary shall encourage 
the States and regional transportation planning agencies to enter into 
contracts and cooperative agreements with qualified youth service or 
conservation corps, as defined in sections 122(a)(2) of Public Law 101-
610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of Public Law 103-82 (42 
U.S.C. 12656(c)(3)) to perform appropriate projects eligible under 
sections 162, 206, 213, and 217 of title 23, United States Code, and 
under section 1404 of the SAFETEA-LU (119 Stat. 1228).

    (b) Requirements.--Under any contract or cooperative agreement 
entered into with a qualified youth service or conservation corps under 
this section, the Secretary shall--
            (1) set the amount of a living allowance or rate of pay for 
        each participant in such corps at--
                    (A) such amount or rate as required under State law 
                in a State with such requirements; or
                    (B) for corps in States not described in 
                subparagraph (A), at such amount or rate as determined 
                by the Secretary, not to exceed the maximum living 
                allowance authorized by section 140 of Public Law 101-
                610 (42 U.S.C. 12594); and
            (2) not subject such corps to the requirements of section 
        112 of title 23, United States Code.
SEC. 1525. <<NOTE: Deadline.>> STATE AUTONOMY FOR CULVERT PIPE 
                          SELECTION.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary shall modify section 635.411 of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
ensure that States shall have the autonomy to determine culvert and 
storm sewer material types to be included in the construction of a 
project on a Federal-aid highway.
SEC. 1526. <<NOTE: 23 USC 104 note.>> EVACUATION ROUTES.

    Each State shall give adequate consideration to the needs of 
evacuation routes in the State, including such routes serving or 
adjacent to facilities operated by the Armed Forces, when allocating

[[Page 126 STAT. 581]]

funds apportioned to the State under title 23, United States Code, for 
the construction of Federal-aid highways.
SEC. 1527. <<NOTE: 23 USC 106 note.>> CONSOLIDATION OF GRANTS.

    (a) Definitions.--In this section, the term ``recipient'' means--
            (1) a State, local, or tribal government, including--
                    (A) a territory of the United States;
                    (B) a transit agency;
                    (C) a port authority;
                    (D) a metropolitan planning organization; or
                    (E) any other political subdivision of a State or 
                local government;
            (2) a multistate or multijurisdictional group, if each 
        member of the group is an entity described in paragraph (1); and
            (3) a public-private partnership, if both parties are 
        engaged in building the project.

    (b) Consolidation.--
            (1) In general.--A recipient that receives multiple grant 
        awards from the Department to support 1 multimodal project may 
        request that the Secretary designate 1 modal administration in 
        the Department to be the lead administering authority for the 
        overall project.
            (2) New starts.--Any project that includes funds awarded 
        under section 5309 of title 49, United States Code, shall be 
        exempt from consolidation under this section unless the grant 
        recipient requests the Federal Transit Administration to be the 
        lead administering authority.
            (3) Review.--
                    (A) <<NOTE: Deadline.>> In general.--Not later than 
                30 days after the date on which a request under 
                paragraph (1) is made, the Secretary shall review the 
                request and approve or deny the designation of a single 
                modal administration as the lead administering authority 
                and point of contact for the Department.
                    (B) Notification.--
                          (i) In general.--The Secretary shall notify 
                      the requestor of the decision of the Secretary 
                      under subparagraph (A) in such form and at such 
                      time as the Secretary and the requestor agree.
                          (ii) Denial.--If a request is denied, the 
                      Secretary shall provide the requestor with a 
                      detailed explanation of the reasoning of the 
                      Secretary with the notification under clause (i).

    (c) Duties.--
            (1) In general.--A modal administration designated as a lead 
        administering authority under this section shall--
                    (A) be responsible for leading and coordinating the 
                integrated project management team, which shall consist 
                of all of the other modal administrations in the 
                Department relating to the multimodal project; and
                    (B) to the extent feasible during the first 30 days 
                of carrying out the multimodal project, identify 
                overlapping or duplicative regulatory requirements that 
                exist for the project and propose a single, streamlined 
                approach to meeting all of the applicable regulatory 
                requirements through the activities described in 
                subsection (d).

[[Page 126 STAT. 582]]

            (2) Administration.--
                    (A) In general.--The Secretary shall transfer all 
                amounts that have been awarded for the multimodal 
                project to the modal administration designated as the 
                lead administering authority.
                    (B) Option.--
                          (i) In general.--Participation under this 
                      section shall be optional for recipients, and no 
                      recipient shall be required to participate.
                          (ii) Secretarial duties.--The Secretary is not 
                      required to identify every recipient that may be 
                      eligible to participate under this section.

    (d) Cooperation.--
            (1) In general.--The Secretary and modal administrations 
        with relevant jurisdiction over a multimodal project should 
        cooperate on project review and delivery activities at the 
        earliest practicable time.
            (2) Purposes.--The purposes of the cooperation under 
        paragraph (1) are--
                    (A) to avoid delays and duplication of effort later 
                in the process;
                    (B) to prevent potential conflicts; and
                    (C) to ensure that planning and project development 
                decisions are made in a streamlined manner and 
                consistent with applicable law.

    (e) Applicability.--Nothing in this section shall--
            (1) supersede, amend, or modify the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal 
        environmental law; or
            (2) affect the responsibility of any Federal officer to 
        comply with or enforce any law described in paragraph (1).
SEC. 1528. <<NOTE: 40 USC 14501 note.>> APPALACHIAN DEVELOPMENT 
                          HIGHWAY SYSTEM.

    (a) Sense of the Senate.--It is the Sense of the Senate that the 
timely completion of the Appalachian development highway system is a 
transportation priority in the national interest.
    (b) Modified Federal Share for Projects on ADHS.--For fiscal years 
2012 through 2021, the Federal share payable for the cost of 
constructing highways and access roads on the Appalachian development 
highway system under section 14501 of title 40, United States Code, with 
funds made available to a State for fiscal year 2012 or a previous 
fiscal year for the Appalachian development highway system program, or 
with funds made available for fiscal year 2012 or a previous fiscal year 
for a specific project, route, or corridor on that system, shall be 100 
percent.
    (c) Federal Share for Other Funds Used on ADHS.--For fiscal years 
2012 through 2021, the Federal share payable for the cost of 
constructing highways and access roads on the Appalachian development 
highway system under section 14501 of title 40, United States Code, with 
Federal funds apportioned to a State for a program other than the 
Appalachian development highway system program shall be 100 percent.
    (d) Completion Plan.--
            (1) <<NOTE: Deadline.>> In general.--Subject to paragraph 
        (2), not later than 1 year after the date of enactment of the 
        MAP-21, each State represented on the Appalachian Regional 
        Commission shall establish a plan for the completion of the 
        designated corridors

[[Page 126 STAT. 583]]

        of the Appalachian development highway system within the State, 
        including annual performance targets, with a target completion 
        date.
            (2) Significant uncompleted miles.--If the percentage of 
        remaining Appalachian development highway system needs for a 
        State, according to the latest cost to complete estimate for the 
        Appalachian development highway system, is greater than 15 
        percent of the total cost to complete estimate for the entire 
        Appalachian development highway system, the State shall not 
        establish a plan under paragraph (1) that would result in a 
        reduction of obligated funds for the Appalachian development 
        highway system within the State for any subsequent fiscal year.
SEC. 1529. <<NOTE: Deadline. Guidance. 23 USC 109 
                          note.>> ENGINEERING JUDGMENT.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall issue guidance to State transportation departments 
clarifying that the standards, guidance, and options for design and 
application of traffic control devices provided in the Manual on Uniform 
Traffic Control Devices should not be considered a substitute for 
engineering judgment.
SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS.

    To encourage the development of careers in the transportation field, 
the Secretary of Education and the Secretary of Labor are encouraged to 
use funds for training and employment education programs--
            (1) to develop programs for transportation-related careers 
        and trades; and
            (2) to work with the Secretary to carry out programs 
        developed under paragraph (1).
SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS.

    (a) Definition of Covered Grant Award.--In this section, the term 
``covered grant award'' means a grant award--
            (1) made--
                    (A) by the Department; and
                    (B) with funds made available under this Act; and
            (2) in an amount equal to or greater than $500,000.

    (b) <<NOTE: Deadline.>> Notice.--Except to the extent otherwise 
expressly provided in another provision of law, at least 3 business days 
before a covered grant award is announced, the Secretary shall provide 
to the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public Works of the 
Senate written notice of the covered grant award.
SEC. 1532. <<NOTE: 49 USC 301 note.>> BUDGET JUSTIFICATION.

    The Secretary shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a budget justification for 
each agency of the Department concurrently with the annual budget 
submission of the President to Congress under section 1105(a) of title 
31, United States Code.

[[Page 126 STAT. 584]]

SEC. 1533. PROHIBITION ON USE OF FUNDS FOR AUTOMATED TRAFFIC 
                          ENFORCEMENT.

    (a) Definition of Automated Traffic Enforcement System.--In this 
section, the term ``automated traffic enforcement system'' means any 
camera that captures an image of a vehicle for the purposes of traffic 
law enforcement.
    (b) Use of Funds.--Except as provided in subsection (c), for fiscal 
years 2013 and 2014, funds apportioned to a State under section 
104(b)(3) of title 23, United States Code, may not be used for any 
program to purchase, operate, or maintain an automated traffic 
enforcement system.
    (c) Exception.--Subsection (b) shall not apply to automated traffic 
enforcement systems used to improve safety in school zones.
SEC. 1534. <<NOTE: 49 USC 301 note.>> PUBLIC-PRIVATE PARTNERSHIPS.

    (a) <<NOTE: Compilation. Public information. Web posting.>> Best 
Practices.--The Secretary shall compile, and make available to the 
public on the website of the Department, best practices on how States, 
public transportation agencies, and other public officials can work with 
the private sector in the development, financing, construction, and 
operation of transportation facilities.

    (b) Contents.--The best practices compiled under subsection (a) 
shall include polices and techniques to ensure that the interests of the 
traveling public and State and local governments are protected in any 
agreement entered into with the private sector for the development, 
financing, construction, and operation of transportation facilities.
    (c) Technical Assistance.--The Secretary, on request, may provide 
technical assistance to States, public transportation agencies, and 
other public officials regarding proposed public-private partnership 
agreements for the development, financing, construction, and operation 
of transportation facilities, including assistance in analyzing whether 
the use of a public-private partnership agreement would provide value 
compared with traditional public delivery methods.
    (d) <<NOTE: Deadline.>>  Standard Transaction Contracts.--
            (1) Development.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall develop standard 
        public-private partnership transaction model contracts for the 
        most popular types of public-private partnerships for the 
        development, financing, construction, and operation of 
        transportation facilities.
            (2) Use.--The Secretary shall encourage States, public 
        transportation agencies, and other public officials to use the 
        model contracts as a base template when developing their own 
        public-private partnership agreements for the development, 
        financing, construction, and operation of transportation 
        facilities.
SEC. 1535. <<NOTE: 23 USC 101 note.>> REPORT ON HIGHWAY TRUST FUND 
                          EXPENDITURES.

    (a) Initial Report.--Not later than 150 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report describing the activities funded from 
the Highway Trust Fund during each of fiscal years 2009 through 2011, 
including for purposes other than construction and maintenance of 
highways and bridges.
    (b) <<NOTE: Time period.>> Updates.--Not later than 5 years after 
the date on which the report is submitted under subsection (a) and every 
5 years

[[Page 126 STAT. 585]]

thereafter, the Comptroller General of the United States shall submit to 
Congress a report that updates the information provided in the report 
under that subsection for the applicable 5-year period.

    (c) Inclusions.--A report submitted under subsection (a) or (b) 
shall include information similar to the information included in the 
report of the Government Accountability Office numbered ``GAO-09-729R'' 
and entitled ``Highway Trust Fund Expenditures on Purposes Other Than 
Construction and Maintenance of Highways and Bridges During Fiscal Years 
2004-2008''.
SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE.

    (a) Findings.--Congress finds that--
            (1) there are 926 coastal, Great Lakes, and inland harbors 
        maintained by the Corps of Engineers;
            (2) according to the Bureau of Transportation Statistics--
                    (A) in 2009, the ports and waterways of the United 
                States handled more than 2,200,000,000 short tons of 
                imports, exports, and domestic shipments; and
                    (B) in 2010, United States ports were responsible 
                for more than $1,400,000,000,000 in waterborne imports 
                and exports;
            (3) according to the Congressional Research Service, full 
        channel dimensions are, on average, available approximately \1/
        3\ of the time at the 59 harbors of the United States with the 
        highest use rates;
            (4) in 1986, Congress created the Harbor Maintenance Trust 
        Fund to provide funds for the operation and maintenance of the 
        navigation channels of the United States;
            (5) in fiscal year 2012, the Harbor Maintenance Trust Fund 
        is expected to grow from $6,280,000,000 to $7,011,000,000, an 
        increase of approximately 13 percent;
            (6) despite growth of the Harbor Maintenance Trust Fund, 
        expenditures from the Harbor Maintenance Trust Fund have not 
        been sufficiently spent; and
            (7) inadequate investment in dredging needs is restricting 
        access to the ports of the United States for domestic shipping, 
        imports, and exports and therefore threatening the economic 
        competitiveness of the United States.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Administration should request full use of the Harbor 
        Maintenance Trust Fund for operating and maintaining the 
        navigation channels of the United States;
            (2) the amounts in the Harbor Maintenance Trust Fund should 
        be fully expended to operate and maintain the navigation 
        channels of the United States; and
            (3) Congress should ensure that other programs, projects, 
        and activities of the Civil Works Program of the Corps of 
        Engineers, especially those programs, projects, and activities 
        relating to inland navigation and flood control, are not 
        adversely impacted.
SEC. 1537. <<NOTE: 33 USC 2238a.>> ESTIMATE OF HARBOR MAINTENANCE 
                          NEEDS.

    For fiscal year 2014 and each fiscal year thereafter, the 
President's budget request submitted pursuant to section 1105 of title 
31, United States Code, shall include--

[[Page 126 STAT. 586]]

            (1) an estimate of the nationwide average availability, 
        expressed as a percentage, of the authorized depth and 
        authorized width of all navigation channels authorized to be 
        maintained using appropriations from the Harbor Maintenance 
        Trust Fund that would result from harbor maintenance activities 
        to be funded by the budget request; and
            (2) an estimate of the average annual amount of 
        appropriations from the Harbor Maintenance Trust Fund that would 
        be required to increase that average availability to 95 percent 
        over a 3-year period.
SEC. 1538. ASIAN CARP.

    (a) Definitions.--In this section:
            (1) Hydrological separation.--The term ``hydrological 
        separation'' means a physical separation on the Chicago Area 
        Waterway System that--
                    (A) would disconnect the Mississippi River watershed 
                from the Lake Michigan watershed; and
                    (B) shall be designed to be adequate in scope to 
                prevent the transfer of all aquatic species between each 
                of those bodies of water.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Army, acting through the Chief of Engineers.

    (b) Expedited Study and Report.--
            (1) In general.--The Secretary shall--
                    (A) expedite completion of the report for the study 
                authorized by section 3061(d) of the Water Resources 
                Development Act of 2007 (Public Law 110-114; 121 Stat. 
                1121); and
                    (B) if the Secretary determines a project is 
                justified in the completed report, proceed directly to 
                project preconstruction engineering and design.
            (2) Focus.--In expediting the completion of the study and 
        report under paragraph (1), the Secretary shall focus on--
                    (A) the prevention of the spread of aquatic nuisance 
                species between the Great Lakes and Mississippi River 
                Basins, such as through the permanent hydrological 
                separation of the Great Lakes and Mississippi River 
                Basins; and
                    (B) the watersheds of the following rivers and 
                tributaries associated with the Chicago Area Waterway 
                System:
                          (i) The Illinois River, at and in the vicinity 
                      of Chicago, Illinois.
                          (ii) The Chicago River, Calumet River, North 
                      Shore Channel, Chicago Sanitary and Ship Canal, 
                      and Cal-Sag Channel in the State of Illinois.
                          (iii) The Grand Calumet River and Little 
                      Calumet River in the States of Illinois and 
                      Indiana.
            (3) Efficient use of funds.--The Secretary shall ensure the 
        efficient use of funds to maximize the timely completion of the 
        study and report under paragraph (1).
            (4) Deadline.--The Secretary shall complete the report under 
        paragraph (1) by not later than 18 months after the date of 
        enactment of this Act.
            (5) Interim report.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall submit to

[[Page 126 STAT. 587]]

        the Committees on Appropriations of the House of Representatives 
        and Senate, the Committee on Environment and Public Works of the 
        Senate, and the Committee on Transportation and Infrastructure 
        of the House of Representatives a report describing--
                    (A) interim milestones that will be met prior to 
                final completion of the study and report under paragraph 
                (1); and
                    (B) funding necessary for completion of the study 
                and report under paragraph (1), including funding 
                necessary for completion of each interim milestone 
                identified under subparagraph (A).
SEC. 1539. REST AREAS.

    (a) Agreements Relating to Use of and Access to Rights-of-way--
Interstate System.--Section 111 of title 23, United States Code, is 
amended--
            (1) in subsection (a) in the second sentence by striking the 
        period and inserting ``and will not change the boundary of any 
        right-of-way on the Interstate System to accommodate 
        construction of, or afford access to, an automotive service 
        station or other commercial establishment.'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following:

    ``(b) Rest Areas.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        Secretary shall permit a State to acquire, construct, operate, 
        and maintain a rest area along a highway on the Interstate 
        System in such State.
            ``(2) Limited activities.--The Secretary shall permit 
        limited commercial activities within a rest area under paragraph 
        (1), if the activities are available only to customers using the 
        rest area and are limited to--
                    ``(A) commercial advertising and media displays if 
                such advertising and displays are--
                          ``(i) exhibited solely within any facility 
                      constructed in the rest area; and
                          ``(ii) not legible from the main traveled way;
                    ``(B) items designed to promote tourism in the 
                State, limited to books, DVDs, and other media;
                    ``(C) tickets for events or attractions in the State 
                of a historical or tourism-related nature;
                    ``(D) travel-related information, including maps, 
                travel booklets, and hotel coupon booklets; and
                    ``(E) lottery machines, provided that the priority 
                afforded to blind vendors under subsection (c) applies 
                to this subparagraph.
            ``(3) Private operators.--A State may permit a private party 
        to operate such commercial activities.
            ``(4) Limitation on use of revenues.--A State shall use any 
        revenues received from the commercial activities in a rest area 
        under this section to cover the costs of acquiring, 
        constructing, operating, and maintaining rest areas in the 
        State.''.

    (b) Control of Outdoor Advertising.--Section 131(i) of title 23, 
United States Code, is amended by adding at the end the following:

[[Page 126 STAT. 588]]

``A State may permit the installation of signs that acknowledge the 
sponsorship of rest areas within such rest areas or along the main 
traveled way of the system, provided that such signs shall not affect 
the safe and efficient utilization of the Interstate System and the 
primary system. <<NOTE: Criteria.>> The Secretary shall establish 
criteria for the installation of such signs on the main traveled way, 
including criteria pertaining to the placement of rest area sponsorship 
acknowledgment signs in relation to the placement of advance guide signs 
for rest areas.''.

 Subtitle F-- <<NOTE: Resources and Ecosystems Sustainability, Tourist 
  Opportunities, and Revived Economies of the Gulf Coast States Act of 
2012.>> Gulf Coast Restoration
SEC. 1601. <<NOTE: 33 USC 1321 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Resources and Ecosystems 
Sustainability, Tourist Opportunities, and Revived Economies of the Gulf 
Coast States Act of 2012''.
SEC. 1602. <<NOTE: 33 USC 1321 note.>> GULF COAST RESTORATION 
                          TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Gulf Coast Restoration 
Trust Fund'' (referred to in this section as the ``Trust Fund''), 
consisting of such amounts as are deposited in the Trust Fund under this 
Act or any other provision of law.
    (b) Transfers.--The Secretary of the Treasury shall deposit in the 
Trust Fund an amount equal to 80 percent of all administrative and civil 
penalties paid by responsible parties after the date of enactment of 
this Act in connection with the explosion on, and sinking of, the mobile 
offshore drilling unit Deepwater Horizon pursuant to a court order, 
negotiated settlement, or other instrument in accordance with section 
311 of the Federal Water Pollution Control Act (33 U.S.C. 1321).
    (c) Expenditures.--Amounts in the Trust Fund, including interest 
earned on advances to the Trust Fund and proceeds from investment under 
subsection (d), shall--
            (1) be available for expenditure, without further 
        appropriation, solely for the purpose and eligible activities of 
        this subtitle and the amendments made by this subtitle; and
            (2) remain available until expended, without fiscal year 
        limitation.

    (d) Investment.--Amounts in the Trust Fund shall be invested in 
accordance with section 9702 of title 31, United States Code, and any 
interest on, and proceeds from, any such investment shall be available 
for expenditure in accordance with this subtitle and the amendments made 
by this subtitle.
    (e) <<NOTE: Deadline. Procedures.>> Administration.--Not later than 
180 days after the date of enactment of this Act, after providing notice 
and an opportunity for public comment, the Secretary of the Treasury, in 
consultation with the Secretary of the Interior and the Secretary of 
Commerce, shall establish such procedures as the Secretary determines to 
be necessary to deposit amounts in, and expend amounts from, the Trust 
Fund pursuant to this subtitle, including--
            (1) procedures to assess whether the programs and activities 
        carried out under this subtitle and the amendments made by this 
        subtitle achieve compliance with applicable requirements, 
        including procedures by which the Secretary of the Treasury may 
        determine whether an expenditure by a Gulf

[[Page 126 STAT. 589]]

        Coast State or coastal political subdivision (as those terms are 
        defined in section 311 of the Federal Water Pollution Control 
        Act (33 U.S.C. 1321)) pursuant to such a program or activity 
        achieves compliance;
            (2) auditing requirements to ensure that amounts in the 
        Trust Fund are expended as intended; and
            (3) procedures for identification and allocation of funds 
        available to the Secretary under other provisions of law that 
        may be necessary to pay the administrative expenses directly 
        attributable to the management of the Trust Fund.

    (f) Sunset.--The authority for the Trust Fund shall terminate on the 
date all funds in the Trust Fund have been expended.
SEC. 1603. <<NOTE: 33 USC 1321 note.>> GULF COAST NATURAL 
                          RESOURCES RESTORATION AND ECONOMIC 
                          RECOVERY.

    Section 311 of the Federal Water Pollution Control Act (33 U.S.C. 
1321) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (25)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (26)(D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) <<NOTE: Definitions.>> by adding at the end the 
                following:
            ``(27) the term `best available science' means science 
        that--
                    ``(A) maximizes the quality, objectivity, and 
                integrity of information, including statistical 
                information;
                    ``(B) uses peer-reviewed and publicly available 
                data; and
                    ``(C) clearly documents and communicates risks and 
                uncertainties in the scientific basis for such projects;
            ``(28) the term `Chairperson' means the Chairperson of the 
        Council;
            ``(29) the term `coastal political subdivision' means any 
        local political jurisdiction that is immediately below the State 
        level of government, including a county, parish, or borough, 
        with a coastline that is contiguous with any portion of the 
        United States Gulf of Mexico;
            ``(30) the term `Comprehensive Plan' means the comprehensive 
        plan developed by the Council pursuant to subsection (t);
            ``(31) the term `Council' means the Gulf Coast Ecosystem 
        Restoration Council established pursuant to subsection (t);
            ``(32) the term `Deepwater Horizon oil spill' means the 
        blowout and explosion of the mobile offshore drilling unit 
        Deepwater Horizon that occurred on April 20, 2010, and resulting 
        hydrocarbon releases into the environment;
            ``(33) the term `Gulf Coast region' means--
                    ``(A) in the Gulf Coast States, the coastal zones 
                (as that term is defined in section 304 of the Coastal 
                Zone Management Act of 1972 (16 U.S.C. 1453)), except 
                that, in this section, the term `coastal zones' includes 
                land within the coastal zones that is held in trust by, 
                or the use of which is by law subject solely to the 
                discretion of, the Federal Government or officers or 
                agents of the Federal Government)) that border the Gulf 
                of Mexico;
                    ``(B) any adjacent land, water, and watersheds, that 
                are within 25 miles of the coastal zones described in 
                subparagraph (A) of the Gulf Coast States; and

[[Page 126 STAT. 590]]

                    ``(C) all Federal waters in the Gulf of Mexico;
            ``(34) the term `Gulf Coast State' means any of the States 
        of Alabama, Florida, Louisiana, Mississippi, and Texas; and
            ``(35) the term `Trust Fund' means the Gulf Coast 
        Restoration Trust Fund established pursuant to section 1602 of 
        the Resources and Ecosystems Sustainability, Tourist 
        Opportunities, and Revived Economies of the Gulf Coast States 
        Act of 2012.'';
            (2) in subsection (s), by inserting ``except as provided in 
        subsection (t)'' before the period at the end; and
            (3) by adding at the end the following:

    ``(t) Gulf Coast Restoration and Recovery.--
            ``(1) State allocation and expenditures.--
                    ``(A) In general.--Of the total amounts made 
                available in any fiscal year from the Trust Fund, 35 
                percent shall be available, in accordance with the 
                requirements of this section, to the Gulf Coast States 
                in equal shares for expenditure for ecological and 
                economic restoration of the Gulf Coast region in 
                accordance with this subsection.
                    ``(B) Use of funds.--
                          ``(i) Eligible activities in the gulf coast 
                      region.--Subject to clause (iii), amounts provided 
                      to the Gulf Coast States under this subsection may 
                      only be used to carry out 1 or more of the 
                      following activities in the Gulf Coast region:
                                    ``(I) Restoration and protection of 
                                the natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(II) Mitigation of damage to fish, 
                                wildlife, and natural resources.
                                    ``(III) Implementation of a 
                                federally approved marine, coastal, or 
                                comprehensive conservation management 
                                plan, including fisheries monitoring.
                                    ``(IV) Workforce development and job 
                                creation.
                                    ``(V) Improvements to or on State 
                                parks located in coastal areas affected 
                                by the Deepwater Horizon oil spill.
                                    ``(VI) Infrastructure projects 
                                benefitting the economy or ecological 
                                resources, including port 
                                infrastructure.
                                    ``(VII) Coastal flood protection and 
                                related infrastructure.
                                    ``(VIII) Planning assistance.
                                    ``(IX) Administrative costs of 
                                complying with this subsection.
                          ``(ii) Activities to promote tourism and 
                      seafood in the gulf coast region.--Amounts 
                      provided to the Gulf Coast States under this 
                      subsection may be used to carry out 1 or more of 
                      the following activities:
                                    ``(I) Promotion of tourism in the 
                                Gulf Coast Region, including 
                                recreational fishing.
                                    ``(II) Promotion of the consumption 
                                of seafood harvested from the Gulf Coast 
                                Region.
                          ``(iii) Limitation.--
                                    ``(I) In general.--Of the amounts 
                                received by a Gulf Coast State under 
                                this subsection, not more

[[Page 126 STAT. 591]]

                                than 3 percent may be used for 
                                administrative costs eligible under 
                                clause (i)(IX).
                                    ``(II) Claims for compensation.--
                                Activities funded under this subsection 
                                may not be included in any claim for 
                                compensation paid out by the Oil Spill 
                                Liability Trust Fund after the date of 
                                enactment of this subsection.
                    ``(C) Coastal political subdivisions.--
                          ``(i) Distribution.--In the case of a State 
                      where the coastal zone includes the entire State--
                                    ``(I) 75 percent of funding shall be 
                                provided directly to the 8 
                                disproportionately affected counties 
                                impacted by the Deepwater Horizon oil 
                                spill; and
                                    ``(II) 25 percent shall be provided 
                                directly to nondisproportionately 
                                impacted counties within the State.
                          ``(ii) Nondisproportionately impacted 
                      counties.--The total amounts made available to 
                      coastal political subdivisions in the State of 
                      Florida under clause (i)(II) shall be distributed 
                      according to the following weighted formula:
                                    ``(I) 34 percent based on the 
                                weighted average of the population of 
                                the county.
                                    ``(II) 33 percent based on the 
                                weighted average of the county per 
                                capita sales tax collections estimated 
                                for fiscal year 2012.
                                    ``(III) 33 percent based on the 
                                inverse proportion of the weighted 
                                average distance from the Deepwater 
                                Horizon oil rig to each of the nearest 
                                and farthest points of the shoreline.
                    ``(D) Louisiana.--
                          ``(i) In general.--Of the total amounts made 
                      available to the State of Louisiana under this 
                      paragraph:
                                    ``(I) 70 percent shall be provided 
                                directly to the State in accordance with 
                                this subsection.
                                    ``(II) 30 percent shall be provided 
                                directly to parishes in the coastal zone 
                                (as defined in section 304 of the 
                                Coastal Zone Management Act of 1972 (16 
                                U.S.C. 1453)) of the State of Louisiana 
                                according to the following weighted 
                                formula:
                                            ``(aa) 40 percent based on 
                                        the weighted average of miles of 
                                        the parish shoreline oiled.
                                            ``(bb) 40 percent based on 
                                        the weighted average of the 
                                        population of the parish.
                                            ``(cc) 20 percent based on 
                                        the weighted average of the land 
                                        mass of the parish.
                          ``(ii) Conditions.--
                                    ``(I) Land use plan.--As a condition 
                                of receiving amounts allocated under 
                                this paragraph, the chief executive of 
                                the eligible parish shall certify to the 
                                Governor of the State that the parish 
                                has completed a comprehensive land use 
                                plan.
                                    ``(II) Other conditions.--A coastal 
                                political subdivision receiving funding 
                                under this paragraph shall meet all of 
                                the conditions in subparagraph (E).

[[Page 126 STAT. 592]]

                    ``(E) Conditions.--As a condition of receiving 
                amounts from the Trust Fund, a Gulf Coast State, 
                including the entities described in subparagraph (F), or 
                a coastal political subdivision shall--
                          ``(i) agree to meet such conditions, including 
                      audit requirements, as the Secretary of the 
                      Treasury determines necessary to ensure that 
                      amounts disbursed from the Trust Fund will be used 
                      in accordance with this subsection;
                          ``(ii) <<NOTE: Certification.>> certify in 
                      such form and in such manner as the Secretary of 
                      the Treasury determines necessary that the project 
                      or program for which the Gulf Coast State or 
                      coastal political subdivision is requesting 
                      amounts--
                                    ``(I) is designed to restore and 
                                protect the natural resources, 
                                ecosystems, fisheries, marine and 
                                wildlife habitats, beaches, coastal 
                                wetlands, or economy of the Gulf Coast;
                                    ``(II) carries out 1 or more of the 
                                activities described in clauses (i) and 
                                (ii) of subparagraph (B);
                                    ``(III) was selected based on 
                                meaningful input from the public, 
                                including broad-based participation from 
                                individuals, businesses, and nonprofit 
                                organizations; and
                                    ``(IV) in the case of a natural 
                                resource protection or restoration 
                                project, is based on the best available 
                                science;
                          ``(iii) <<NOTE: Certification.>> certify that 
                      the project or program and the awarding of a 
                      contract for the expenditure of amounts received 
                      under this paragraph are consistent with the 
                      standard procurement rules and regulations 
                      governing a comparable project or program in that 
                      State, including all applicable competitive 
                      bidding and audit requirements; and
                          ``(iv) <<NOTE: Implementation plan.>> develop 
                      and submit a multiyear implementation plan for the 
                      use of such amounts, which may include milestones, 
                      projected completion of each activity, and a 
                      mechanism to evaluate the success of each activity 
                      in helping to restore and protect the Gulf Coast 
                      region impacted by the Deepwater Horizon oil 
                      spill.
                    ``(F) Approval by state entity, task force, or 
                agency.--The following Gulf Coast State entities, task 
                forces, or agencies shall carry out the duties of a Gulf 
                Coast State pursuant to this paragraph:
                          ``(i) Alabama.--
                                    ``(I) In general.--In the State of 
                                Alabama, the Alabama Gulf Coast Recovery 
                                Council, which shall be comprised of 
                                only the following:
                                            ``(aa) The Governor of 
                                        Alabama, who shall also serve as 
                                        Chairperson and preside over the 
                                        meetings of the Alabama Gulf 
                                        Coast Recovery Council.
                                            ``(bb) The Director of the 
                                        Alabama State Port Authority, 
                                        who shall also serve as Vice 
                                        Chairperson and preside over the 
                                        meetings

[[Page 126 STAT. 593]]

                                        of the Alabama Gulf Coast 
                                        Recovery Council in the absence 
                                        of the Chairperson.
                                            ``(cc) The Chairman of the 
                                        Baldwin County Commission.
                                            ``(dd) The President of the 
                                        Mobile County Commission.
                                            ``(ee) The Mayor of the city 
                                        of Bayou La Batre.
                                            ``(ff) The Mayor of the town 
                                        of Dauphin Island.
                                            ``(gg) The Mayor of the city 
                                        of Fairhope.
                                            ``(hh) The Mayor of the city 
                                        of Gulf Shores.
                                            ``(ii) The Mayor of the city 
                                        of Mobile.
                                            ``(jj) The Mayor of the city 
                                        of Orange Beach.
                                    ``(II) Vote.--Each member of the 
                                Alabama Gulf Coast Recovery Council 
                                shall be entitled to 1 vote.
                                    ``(III) Majority vote.--All 
                                decisions of the Alabama Gulf Coast 
                                Recovery Council shall be made by 
                                majority vote.
                                    ``(IV) Limitation on administrative 
                                expenses.--Administrative duties for the 
                                Alabama Gulf Coast Recovery Council may 
                                only be performed by public officials 
                                and employees that are subject to the 
                                ethics laws of the State of Alabama.
                          ``(ii) Louisiana.--In the State of Louisiana, 
                      the Coastal Protection and Restoration Authority 
                      of Louisiana.
                          ``(iii) Mississippi.--In the State of 
                      Mississippi, the Mississippi Department of 
                      Environmental Quality.
                          ``(iv) Texas.--In the State of Texas, the 
                      Office of the Governor or an appointee of the 
                      Office of the Governor.
                    ``(G) Compliance with eligible activities.--If the 
                Secretary of the Treasury determines that an expenditure 
                by a Gulf Coast State or coastal political subdivision 
                of amounts made available under this subsection does not 
                meet one of the activities described in clauses (i) and 
                (ii) of subparagraph (B), the Secretary shall make no 
                additional amounts from the Trust Fund available to that 
                Gulf Coast State or coastal political subdivision until 
                such time as an amount equal to the amount expended for 
                the unauthorized use--
                          ``(i) has been deposited by the Gulf Coast 
                      State or coastal political subdivision in the 
                      Trust Fund; or
                          ``(ii) has been authorized by the Secretary of 
                      the Treasury for expenditure by the Gulf Coast 
                      State or coastal political subdivision for a 
                      project or program that meets the requirements of 
                      this subsection.
                    ``(H) Compliance with conditions.--If the Secretary 
                of the Treasury determines that a Gulf Coast State or 
                coastal political subdivision does not meet the 
                requirements of this paragraph, including the conditions 
                of subparagraph (E), where applicable, the Secretary of 
                the Treasury shall make no amounts from the Trust Fund 
                available to that

[[Page 126 STAT. 594]]

                Gulf Coast State or coastal political subdivision until 
                all conditions of this paragraph are met.
                    ``(I) Public input.--In meeting any condition of 
                this paragraph, a Gulf Coast State may use an 
                appropriate procedure for public consultation in that 
                Gulf Coast State, including consulting with one or more 
                established task forces or other entities, to develop 
                recommendations for proposed projects and programs that 
                would restore and protect the natural resources, 
                ecosystems, fisheries, marine and wildlife habitats, 
                beaches, coastal wetlands, and economy of the Gulf 
                Coast.
                    ``(J) Previously approved projects and programs.--A 
                Gulf Coast State or coastal political subdivision shall 
                be considered to have met the conditions of subparagraph 
                (E) for a specific project or program if, before the 
                date of enactment of the Resources and Ecosystems 
                Sustainability, Tourist Opportunities, and Revived 
                Economies of the Gulf Coast States Act of 2012--
                          ``(i) the Gulf Coast State or coastal 
                      political subdivision has established conditions 
                      for carrying out projects and programs that are 
                      substantively the same as the conditions described 
                      in subparagraph (E); and
                          ``(ii) the applicable project or program 
                      carries out 1 or more of the activities described 
                      in clauses (i) and (ii) of subparagraph (B).
                    ``(K) <<NOTE: Contracts.>> Local preference.--In 
                awarding contracts to carry out a project or program 
                under this paragraph, a Gulf Coast State or coastal 
                political subdivision may give a preference to 
                individuals and companies that reside in, are 
                headquartered in, or are principally engaged in business 
                in the State of project execution.
                    ``(L) <<NOTE: Plan.>> Unused funds.--Funds allocated 
                to a State or coastal political subdivision under this 
                paragraph shall remain in the Trust Fund until such time 
                as the State or coastal political subdivision develops 
                and submits a plan identifying uses for those funds in 
                accordance with subparagraph (E)(iv).
                    ``(M) Judicial review.--If the Secretary of the 
                Treasury determines that a Gulf Coast State or coastal 
                political subdivision does not meet the requirements of 
                this paragraph, including the conditions of subparagraph 
                (E), the Gulf Coast State or coastal political 
                subdivision may obtain expedited judicial review within 
                90 days after that decision in a district court of the 
                United States, of appropriate jurisdiction and venue, 
                that is located within the State seeking the review.
                    ``(N) Cost-sharing.--
                          ``(i) In general.--A Gulf Coast State or 
                      coastal political subdivision may use, in whole or 
                      in part, amounts made available under this 
                      paragraph to that Gulf Coast State or coastal 
                      political subdivision to satisfy the non-Federal 
                      share of the cost of any project or program 
                      authorized by Federal law that is an eligible 
                      activity described in clauses (i) and (ii) of 
                      subparagraph (B).
                          ``(ii) Effect on other funds.--The use of 
                      funds made available from the Trust Fund to 
                      satisfy the

[[Page 126 STAT. 595]]

                      non-Federal share of the cost of a project or 
                      program that meets the requirements of clause (i) 
                      shall not affect the priority in which other 
                      Federal funds are allocated or awarded.
            ``(2) Council establishment and allocation.--
                    ``(A) In general.--Of the total amount made 
                available in any fiscal year from the Trust Fund, 30 
                percent shall be disbursed to the Council to carry out 
                the Comprehensive Plan.
                    ``(B) Council expenditures.--
                          ``(i) In general.--In accordance with this 
                      paragraph, the Council shall expend funds made 
                      available from the Trust Fund to undertake 
                      projects and programs, using the best available 
                      science, that would restore and protect the 
                      natural resources, ecosystems, fisheries, marine 
                      and wildlife habitats, beaches, coastal wetlands, 
                      and economy of the Gulf Coast.
                          ``(ii) <<NOTE: Audits.>> Allocation and 
                      expenditure procedures.--The Secretary of the 
                      Treasury shall develop such conditions, including 
                      audit requirements, as the Secretary of the 
                      Treasury determines necessary to ensure that 
                      amounts disbursed from the Trust Fund to the 
                      Council to implement the Comprehensive Plan will 
                      be used in accordance with this paragraph.
                          ``(iii) Administrative expenses.--Of the 
                      amounts received by the Council under this 
                      paragraph, not more than 3 percent may be used for 
                      administrative expenses, including staff.
                    ``(C) Gulf coast ecosystem restoration council.--
                          ``(i) Establishment.--There is established as 
                      an independent entity in the Federal Government a 
                      council to be known as the `Gulf Coast Ecosystem 
                      Restoration Council'.
                          ``(ii) Membership.--The Council shall consist 
                      of the following members, or in the case of a 
                      Federal agency, a designee at the level of the 
                      Assistant Secretary or the equivalent:
                                    ``(I) The Secretary of the Interior.
                                    ``(II) The Secretary of the Army.
                                    ``(III) The Secretary of Commerce.
                                    ``(IV) The Administrator of the 
                                Environmental Protection Agency.
                                    ``(V) The Secretary of Agriculture.
                                    ``(VI) The head of the department in 
                                which the Coast Guard is operating.
                                    ``(VII) The Governor of the State of 
                                Alabama.
                                    ``(VIII) The Governor of the State 
                                of Florida.
                                    ``(IX) The Governor of the State of 
                                Louisiana.
                                    ``(X) The Governor of the State of 
                                Mississippi.
                                    ``(XI) The Governor of the State of 
                                Texas.
                          ``(iii) Alternate.--A Governor appointed to 
                      the Council by the President may designate an 
                      alternate to represent the Governor on the Council 
                      and vote on behalf of the Governor.
                          
                      ``(iv) <<NOTE: President. Appointment.>> Chairperso
                      n.--From among the Federal agency members of the 
                      Council, the representatives of States on the 
                      Council shall select, and the President

[[Page 126 STAT. 596]]

                      shall appoint, 1 Federal member to serve as 
                      Chairperson of the Council.
                          ``(v) Presidential appointment.--All Council 
                      members shall be appointed by the President.
                          ``(vi) Council actions.--
                                    ``(I) In general.--The following 
                                actions by the Council shall require the 
                                affirmative vote of the Chairperson and 
                                a majority of the State members to be 
                                effective:
                                            ``(aa) Approval of a 
                                        Comprehensive Plan and future 
                                        revisions to a Comprehensive 
                                        Plan.
                                            ``(bb) Approval of State 
                                        plans pursuant to paragraph 
                                        (3)(B)(iv).
                                            ``(cc) Approval of reports 
                                        to Congress pursuant to clause 
                                        (vii)(VII).
                                            ``(dd) Approval of transfers 
                                        pursuant to subparagraph 
                                        (E)(ii)(I).
                                            ``(ee) Other significant 
                                        actions determined by the 
                                        Council.
                                    ``(II) Quorum.--A majority of State 
                                members shall be required to be present 
                                for the Council to take any significant 
                                action.
                                    ``(III) Affirmative vote requirement 
                                considered met.--For approval of State 
                                plans pursuant to paragraph (3)(B)(iv), 
                                the certification by a State member of 
                                the Council that the plan satisfies all 
                                requirements of clauses (i) and (ii) of 
                                paragraph (3)(B), when joined by an 
                                affirmative vote of the Federal 
                                Chairperson of the Council, shall be 
                                considered to satisfy the requirements 
                                for affirmative votes under subclause 
                                (I).
                                    ``(IV) Public transparency.--
                                Appropriate actions of the Council, 
                                including significant actions and 
                                associated deliberations, shall be made 
                                available to the public via electronic 
                                means prior to any vote.
                          ``(vii) Duties of council.--The Council 
                      shall--
                                    ``(I) develop the Comprehensive Plan 
                                and future revisions to the 
                                Comprehensive Plan;
                                    ``(II) identify as soon as 
                                practicable the projects that--
                                            ``(aa) have been authorized 
                                        prior to the date of enactment 
                                        of this subsection but not yet 
                                        commenced; and
                                            ``(bb) if implemented 
                                        quickly, would restore and 
                                        protect the natural resources, 
                                        ecosystems, fisheries, marine 
                                        and wildlife habitats, beaches, 
                                        barrier islands, dunes, and 
                                        coastal wetlands of the Gulf 
                                        Coast region;
                                    ``(III) establish such other 1 or 
                                more advisory committees as may be 
                                necessary to assist the Council, 
                                including a scientific advisory 
                                committee and a committee to advise the 
                                Council on public policy issues;
                                    ``(IV) collect and consider 
                                scientific and other research associated 
                                with restoration of the Gulf Coast 
                                ecosystem, including research, 
                                observation,

[[Page 126 STAT. 597]]

                                and monitoring carried out pursuant to 
                                sections 1604 and 1605 of the Resources 
                                and Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012;
                                    ``(V) develop standard terms to 
                                include in contracts for projects and 
                                programs awarded pursuant to the 
                                Comprehensive Plan that provide a 
                                preference to individuals and companies 
                                that reside in, are headquartered in, or 
                                are principally engaged in business in a 
                                Gulf Coast State;
                                    ``(VI) prepare an integrated 
                                financial plan and recommendations for 
                                coordinated budget requests for the 
                                amounts proposed to be expended by the 
                                Federal agencies represented on the 
                                Council for projects and programs in the 
                                Gulf Coast States; and
                                    ``(VII) <<NOTE: Reports.>> submit to 
                                Congress an annual report that--
                                            ``(aa) summarizes the 
                                        policies, strategies, plans, and 
                                        activities for addressing the 
                                        restoration and protection of 
                                        the Gulf Coast region;
                                            ``(bb) describes the 
                                        projects and programs being 
                                        implemented to restore and 
                                        protect the Gulf Coast region, 
                                        including--
                                                ``(AA) a list of each 
                                            project and program;
                                                ``(BB) an identification 
                                            of the funding provided to 
                                            projects and programs 
                                            identified in subitem (AA);
                                                ``(CC) an identification 
                                            of each recipient for 
                                            funding identified in 
                                            subitem (BB); and
                                                ``(DD) a description of 
                                            the length of time and 
                                            funding needed to complete 
                                            the objectives of each 
                                            project and program 
                                            identified in subitem (AA);
                                            ``(cc) makes such 
                                        recommendations to Congress for 
                                        modifications of existing laws 
                                        as the Council determines 
                                        necessary to implement the 
                                        Comprehensive Plan;
                                            ``(dd) reports on the 
                                        progress on implementation of 
                                        each project or program--
                                                ``(AA) after 3 years of 
                                            ongoing activity of the 
                                            project or program, if 
                                            applicable; and
                                                ``(BB) on completion of 
                                            the project or program;
                                            ``(ee) includes the 
                                        information required to be 
                                        submitted under section 
                                        1605(c)(4) of the Resources and 
                                        Ecosystems Sustainability, 
                                        Tourist Opportunities, and 
                                        Revived Economies of the Gulf 
                                        Coast States Act of 2012; and
                                            ``(ff) submits the reports 
                                        required under item (dd) to--
                                                ``(AA) the Committee on 
                                            Science, Space, and 
                                            Technology, the Committee on

[[Page 126 STAT. 598]]

                                            Natural Resources, the 
                                            Committee on Transportation 
                                            and Infrastructure, and the 
                                            Committee on Appropriations 
                                            of the House of 
                                            Representatives; and
                                                ``(BB) the Committee on 
                                            Environment and Public 
                                            Works, the Committee on 
                                            Commerce, Science, and 
                                            Transportation, the 
                                            Committee on Energy and 
                                            Natural Resources, and the 
                                            Committee on Appropriations 
                                            of the Senate.
                          ``(viii) Application of federal advisory 
                      committee act.--The Council, or any other advisory 
                      committee established under this subparagraph, 
                      shall not be considered an advisory committee 
                      under the Federal Advisory Committee Act (5 U.S.C. 
                      App.).
                          ``(ix) Sunset.--The authority for the Council, 
                      and any other advisory committee established under 
                      this subparagraph, shall terminate on the date all 
                      funds in the Trust Fund have been expended.
                    ``(D) Comprehensive plan.--
                          ``(i) Proposed plan.--
                                    
                                ``(I) <<NOTE: Deadline. Publication.>> In
                                 general.--Not later than 180 days after 
                                the date of enactment of the Resources 
                                and Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012, the 
                                Chairperson, on behalf of the Council 
                                and after appropriate public input, 
                                review, and comment, shall publish a 
                                proposed plan to restore and protect the 
                                natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(II) Inclusions.--The proposed 
                                plan described in subclause (I) shall 
                                include and incorporate the findings and 
                                information prepared by the President's 
                                Gulf Coast Restoration Task Force.
                          ``(ii) Publication.--
                                    ``(I) <<NOTE: Deadline. Federal 
                                Register, publication.>> Initial plan.--
                                Not later than 1 year after the date of 
                                enactment of the Resources and 
                                Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012 and 
                                after notice and opportunity for public 
                                comment, the Chairperson, on behalf of 
                                the Council and after approval by the 
                                Council, shall publish in the Federal 
                                Register the initial Comprehensive Plan 
                                to restore and protect the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands of the Gulf Coast 
                                region.
                                    ``(II) Cooperation with gulf coast 
                                restoration task force.--The Council 
                                shall develop the initial Comprehensive 
                                Plan in close coordination with the 
                                President's Gulf Coast Restoration Task 
                                Force.
                                    ``(III) Considerations.--In 
                                developing the initial Comprehensive 
                                Plan and subsequent updates, the Council 
                                shall consider all relevant findings,

[[Page 126 STAT. 599]]

                                reports, or research prepared or funded 
                                under section 1604 or 1605 of the 
                                Resources and Ecosystems Sustainability, 
                                Tourist Opportunities, and Revived 
                                Economies of the Gulf Coast States Act 
                                of 2012.
                                    ``(IV) Contents.--The initial 
                                Comprehensive Plan shall include--
                                            ``(aa) such provisions as 
                                        are necessary to fully 
                                        incorporate in the Comprehensive 
                                        Plan the strategy, projects, and 
                                        programs recommended by the 
                                        President's Gulf Coast 
                                        Restoration Task Force;
                                            ``(bb) a list of any project 
                                        or program authorized prior to 
                                        the date of enactment of this 
                                        subsection but not yet 
                                        commenced, the completion of 
                                        which would further the purposes 
                                        and goals of this subsection and 
                                        of the Resources and Ecosystems 
                                        Sustainability, Tourist 
                                        Opportunities, and Revived 
                                        Economies of the Gulf Coast 
                                        States Act of 2012;
                                            ``(cc) a description of the 
                                        manner in which amounts from the 
                                        Trust Fund projected to be made 
                                        available to the Council for the 
                                        succeeding 10 years will be 
                                        allocated; and
                                            ``(dd) subject to available 
                                        funding in accordance with 
                                        clause (iii), a prioritized list 
                                        of specific projects and 
                                        programs to be funded and 
                                        carried out during the 3-year 
                                        period immediately following the 
                                        date of publication of the 
                                        initial Comprehensive Plan, 
                                        including a table that 
                                        illustrates the distribution of 
                                        projects and programs by the 
                                        Gulf Coast State.
                                    ``(V) Plan updates.--The Council 
                                shall update--
                                            ``(aa) <<NOTE: Time 
                                        period.>> the Comprehensive Plan 
                                        every 5 years in a manner 
                                        comparable to the manner 
                                        established in this subparagraph 
                                        for each 5-year period for which 
                                        amounts are expected to be made 
                                        available to the Gulf Coast 
                                        States from the Trust Fund; and
                                            ``(bb) the 3-year list of 
                                        projects and programs described 
                                        in subclause (IV)(dd) annually.
                          ``(iii) Restoration priorities.--Except for 
                      projects and programs described in clause 
                      (ii)(IV)(bb), in selecting projects and programs 
                      to include on the 3-year list described in clause 
                      (ii)(IV)(dd), based on the best available science, 
                      the Council shall give highest priority to 
                      projects that address 1 or more of the following 
                      criteria:
                                    ``(I) Projects that are projected to 
                                make the greatest contribution to 
                                restoring and protecting the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands of the Gulf Coast 
                                region, without regard to geographic 
                                location within the Gulf Coast region.

[[Page 126 STAT. 600]]

                                    ``(II) Large-scale projects and 
                                programs that are projected to 
                                substantially contribute to restoring 
                                and protecting the natural resources, 
                                ecosystems, fisheries, marine and 
                                wildlife habitats, beaches, and coastal 
                                wetlands of the Gulf Coast ecosystem.
                                    ``(III) Projects contained in 
                                existing Gulf Coast State comprehensive 
                                plans for the restoration and protection 
                                of natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(IV) Projects that restore long-
                                term resiliency of the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands most impacted by the 
                                Deepwater Horizon oil spill.
                    ``(E) Implementation.--
                          ``(i) In general.--The Council, acting through 
                      the Federal agencies represented on the Council 
                      and Gulf Coast States, shall expend funds made 
                      available from the Trust Fund to carry out 
                      projects and programs adopted in the Comprehensive 
                      Plan.
                          ``(ii) Administrative responsibility.--
                                    ``(I) In general.--Primary authority 
                                and responsibility for each project and 
                                program included in the Comprehensive 
                                Plan shall be assigned by the Council to 
                                a Gulf Coast State represented on the 
                                Council or a Federal agency.
                                    ``(II) Transfer of amounts.--Amounts 
                                necessary to carry out each project or 
                                program included in the Comprehensive 
                                Plan shall be transferred by the 
                                Secretary of the Treasury from the Trust 
                                Fund to that Federal agency or Gulf 
                                Coast State as the project or program is 
                                implemented, subject to such conditions 
                                as the Secretary of the Treasury, in 
                                consultation with the Secretary of the 
                                Interior and the Secretary of Commerce, 
                                established pursuant to section 1602 of 
                                the Resources and Ecosystems 
                                Sustainability, Tourist Opportunities, 
                                and Revived Economies of the Gulf Coast 
                                States Act of 2012.
                                    ``(III) <<NOTE: Federal Register, 
                                publication.>> Limitation on 
                                transfers.--
                                            ``(aa) Grants to 
                                        nongovernmental entities.--In 
                                        the case of funds transferred to 
                                        a Federal or State agency under 
                                        subclause (II), the agency shall 
                                        not make 1 or more grants or 
                                        cooperative agreements to a 
                                        nongovernmental entity if the 
                                        total amount provided to the 
                                        entity would equal or exceed 10 
                                        percent of the total amount 
                                        provided to the agency for that 
                                        particular project or program, 
                                        unless the 1 or more grants have 
                                        been reported in accordance with 
                                        item (bb).
                                            ``(bb) <<NOTE: Time 
                                        period.>> Reporting of 
                                        grantees.--At least 30 days 
                                        prior to making a grant or 
                                        entering into a cooperative 
                                        agreement described in item 
                                        (aa), the name of each grantee, 
                                        including the

[[Page 126 STAT. 601]]

                                        amount and purpose of each grant 
                                        or cooperative agreement, shall 
                                        be published in the Federal 
                                        Register and delivered to the 
                                        congressional committees listed 
                                        in subparagraph 
                                        (C)(vii)(VII)(ff).
                                            ``(cc) Annual reporting of 
                                        grantees.--Annually, the name of 
                                        each grantee, including the 
                                        amount and purposes of each 
                                        grant or cooperative agreement, 
                                        shall be published in the 
                                        Federal Register and delivered 
                                        to Congress as part of the 
                                        report submitted pursuant to 
                                        subparagraph (C)(vii)(VII).
                                    ``(IV) Project and program 
                                limitation.--The Council, a Federal 
                                agency, or a State may not carry out a 
                                project or program funded under this 
                                paragraph outside of the Gulf Coast 
                                region.
                    ``(F) Coordination.--The Council and the Federal 
                members of the Council may develop memoranda of 
                understanding establishing integrated funding and 
                implementation plans among the member agencies and 
                authorities.
            ``(3) Oil spill restoration impact allocation.--
                    ``(A) In general.--
                          ``(i) Disbursement.--Of the total amount made 
                      available from the Trust Fund, 30 percent shall be 
                      disbursed pursuant to the formula in clause (ii) 
                      to the Gulf Coast States on the approval of the 
                      plan described in subparagraph (B)(i).
                          ``(ii) <<NOTE: Regulations.>> Formula.--
                      Subject to subparagraph (B), for each Gulf Coast 
                      State, the amount disbursed under this paragraph 
                      shall be based on a formula established by the 
                      Council by regulation that is based on a weighted 
                      average of the following criteria:
                                    ``(I) 40 percent based on the 
                                proportionate number of miles of 
                                shoreline in each Gulf Coast State that 
                                experienced oiling on or before April 
                                10, 2011, compared to the total number 
                                of miles of shoreline that experienced 
                                oiling as a result of the Deepwater 
                                Horizon oil spill.
                                    ``(II) 40 percent based on the 
                                inverse proportion of the average 
                                distance from the mobile offshore 
                                drilling unit Deepwater Horizon at the 
                                time of the explosion to the nearest and 
                                farthest point of the shoreline that 
                                experienced oiling of each Gulf Coast 
                                State.
                                    ``(III) 20 percent based on the 
                                average population in the 2010 decennial 
                                census of coastal counties bordering the 
                                Gulf of Mexico within each Gulf Coast 
                                State.
                          ``(iii) Minimum allocation.--The amount 
                      disbursed to a Gulf Coast State for each fiscal 
                      year under clause (ii) shall be at least 5 percent 
                      of the total amounts made available under this 
                      paragraph.
                    ``(B) Disbursement of funds.--
                          ``(i) <<NOTE: Expenditure plan.>> In 
                      general.--The Council shall disburse amounts to 
                      the respective Gulf Coast States in accordance 
                      with the formula developed under subparagraph (A) 
                      for projects, programs, and activities that will

[[Page 126 STAT. 602]]

                      improve the ecosystems or economy of the Gulf 
                      Coast region, subject to the condition that each 
                      Gulf Coast State submits a plan for the 
                      expenditure of amounts disbursed under this 
                      paragraph that meets the following criteria:
                                    ``(I) All projects, programs, and 
                                activities included in the plan are 
                                eligible activities pursuant to clauses 
                                (i) and (ii) of paragraph (1)(B).
                                    ``(II) The projects, programs, and 
                                activities included in the plan 
                                contribute to the overall economic and 
                                ecological recovery of the Gulf Coast.
                                    ``(III) The plan takes into 
                                consideration the Comprehensive Plan and 
                                is consistent with the goals and 
                                objectives of the Plan, as described in 
                                paragraph (2)(B)(i).
                          ``(ii) Funding.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the plan 
                                described in clause (i) may use not more 
                                than 25 percent of the funding made 
                                available for infrastructure projects 
                                eligible under subclauses (VI) and (VII) 
                                of paragraph (1)(B)(i).
                                    ``(II) Exception.--The plan 
                                described in clause (i) may propose to 
                                use more than 25 percent of the funding 
                                made available for infrastructure 
                                projects eligible under subclauses (VI) 
                                and (VII) of paragraph (1)(B)(i) if the 
                                plan certifies that--
                                            ``(aa) ecosystem restoration 
                                        needs in the State will be 
                                        addressed by the projects in the 
                                        proposed plan; and
                                            ``(bb) additional investment 
                                        in infrastructure is required to 
                                        mitigate the impacts of the 
                                        Deepwater Horizon Oil Spill to 
                                        the ecosystem or economy.
                          ``(iii) <<NOTE: State 
                      listing.>> Development.--The plan described in 
                      clause (i) shall be developed by--
                                    ``(I) in the State of Alabama, the 
                                Alabama Gulf Coast Recovery Council 
                                established under paragraph (1)(F)(i);
                                    ``(II) in the State of Florida, a 
                                consortia of local political 
                                subdivisions that includes at a minimum 
                                1 representative of each affected 
                                county;
                                    ``(III) in the State of Louisiana, 
                                the Coastal Protection and Restoration 
                                Authority of Louisiana;
                                    ``(IV) in the State of Mississippi, 
                                the Office of the Governor or an 
                                appointee of the Office of the Governor; 
                                and
                                    ``(V) in the State of Texas, the 
                                Office of the Governor or an appointee 
                                of the Office of the Governor.
                          ``(iv) <<NOTE: Deadline.>> Approval.--Not 
                      later than 60 days after the date on which a plan 
                      is submitted under clause (i), the Council shall 
                      approve or disapprove the plan based on the 
                      conditions of clause (i).
                    ``(C) Disapproval.--If the Council disapproves a 
                plan pursuant to subparagraph (B)(iv), the Council 
                shall--
                          ``(i) provide the reasons for disapproval in 
                      writing; and

[[Page 126 STAT. 603]]

                          ``(ii) <<NOTE: Consultation.>> consult with 
                      the State to address any identified deficiencies 
                      with the State plan.
                    ``(D) Failure to submit adequate plan.--If a State 
                fails to submit an adequate plan under this paragraph, 
                any funds made available under this paragraph shall 
                remain in the Trust Fund until such date as a plan is 
                submitted and approved pursuant to this paragraph.
                    ``(E) <<NOTE: Deadlines.>> Judicial review.--If the 
                Council fails to approve or take action within 60 days 
                on a plan, as described in subparagraph (B)(iv), the 
                State may obtain expedited judicial review within 90 
                days of that decision in a district court of the United 
                States, of appropriate jurisdiction and venue, that is 
                located within the State seeking the review.
                    ``(F) Cost-sharing.--
                          ``(i) In general.--A Gulf Coast State or 
                      coastal political subdivision may use, in whole or 
                      in part, amounts made available to that Gulf Coast 
                      State or coastal political subdivision under this 
                      paragraph to satisfy the non-Federal share of any 
                      project or program that--
                                    ``(I) is authorized by other Federal 
                                law; and
                                    ``(II) is an eligible activity 
                                described in clause (i) or (ii) of 
                                paragraph (1)(B).
                          ``(ii) Effect on other funds.--The use of 
                      funds made available from the Trust Fund under 
                      this paragraph to satisfy the non-Federal share of 
                      the cost of a project or program described in 
                      clause (i) shall not affect the priority in which 
                      other Federal funds are allocated or awarded.
            ``(4) Authorization of interest transfers.--Of the total 
        amount made available for any fiscal year from the Trust Fund 
        that is equal to the interest earned by the Trust Fund and 
        proceeds from investments made by the Trust Fund in the 
        preceding fiscal year--
                    ``(A) 50 percent shall be divided equally between--
                          ``(i) the Gulf Coast Ecosystem Restoration 
                      Science, Observation, Monitoring, and Technology 
                      program authorized in section 1604 of the 
                      Resources and Ecosystems Sustainability, Tourist 
                      Opportunities, and Revived Economies of the Gulf 
                      Coast States Act of 2012; and
                          ``(ii) the centers of excellence research 
                      grants authorized in section 1605 of that Act; and
                    ``(B) 50 percent shall be made available to the Gulf 
                Coast Ecosystem Restoration Council to carry out the 
                Comprehensive Plan pursuant to paragraph (2).''.
SEC. 1604. <<NOTE: 33 USC 1321 note.>> GULF COAST ECOSYSTEM 
                          RESTORATION SCIENCE, OBSERVATION, 
                          MONITORING, AND TECHNOLOGY PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            (2) Commission.--The term ``Commission'' means the Gulf 
        States Marine Fisheries Commission.

[[Page 126 STAT. 604]]

            (3) Director.--The term ``Director'' means the Director of 
        the United States Fish and Wildlife Service.
            (4) Program.--The term ``program'' means the Gulf Coast 
        Ecosystem Restoration Science, Observation, Monitoring, and 
        Technology program established under this section.

    (b) Establishment of Program.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 180 days 
        after the date of enactment of this Act, the Administrator, in 
        consultation with the Director, shall establish the Gulf Coast 
        Ecosystem Restoration Science, Observation, Monitoring, and 
        Technology program to carry out research, observation, and 
        monitoring to support, to the maximum extent practicable, the 
        long-term sustainability of the ecosystem, fish stocks, fish 
        habitat, and the recreational, commercial, and charter fishing 
        industry in the Gulf of Mexico.
            (2) Expenditure of funds.--For each fiscal year, amounts 
        made available to carry out this subsection may be expended for, 
        with respect to the Gulf of Mexico--
                    (A) marine and estuarine research;
                    (B) marine and estuarine ecosystem monitoring and 
                ocean observation;
                    (C) data collection and stock assessments;
                    (D) pilot programs for--
                          (i) fishery independent data; and
                          (ii) reduction of exploitation of spawning 
                      aggregations; and
                    (E) cooperative research.
            (3) Cooperation with the commission.--For each fiscal year, 
        amounts made available to carry out this subsection may be 
        transferred to the Commission to establish a fisheries 
        monitoring and research program, with respect to the Gulf of 
        Mexico.
            (4) Consultation.--The Administrator and the Director shall 
        consult with the Regional Gulf of Mexico Fishery Management 
        Council and the Commission in carrying out the program.

    (c) Species Included.--The research, monitoring, assessment, and 
programs eligible for amounts made available under the program shall 
include all marine, estuarine, aquaculture, and fish species in State 
and Federal waters of the Gulf of Mexico.
    (d) Research Priorities.--In distributing funding under this 
subsection, priority shall be given to integrated, long-term projects 
that--
            (1) build on, or are coordinated with, related research 
        activities; and
            (2) address current or anticipated marine ecosystem, 
        fishery, or wildlife management information needs.

    (e) Duplication.--In carrying out this section, the Administrator, 
in consultation with the Director, shall seek to avoid duplication of 
other research and monitoring activities.
    (f) <<NOTE: Plan. State listing.>> Coordination With Other 
Programs.--The Administrator, in consultation with the Director, shall 
develop a plan for the coordination of projects and activities between 
the program and other existing Federal and State science and technology 
programs in the States of Alabama, Florida, Louisiana, Mississippi, and 
Texas, as well as between the centers of excellence.

    (g) Limitation on Expenditures.--

[[Page 126 STAT. 605]]

            (1) In general.--Not more than 3 percent of funds provided 
        in subsection (h) shall be used for administrative expenses.
            (2) NOAA.--The funds provided in subsection (h) may not be 
        used--
                    (A) for any existing or planned research led by the 
                National Oceanic and Atmospheric Administration, unless 
                agreed to in writing by the grant recipient;
                    (B) to implement existing regulations or initiate 
                new regulations promulgated or proposed by the National 
                Oceanic and Atmospheric Administration; or
                    (C) to develop or approve a new limited access 
                privilege program (as that term is used in section 303A 
                of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1853a)) for any fishery under 
                the jurisdiction of the South Atlantic, Mid-Atlantic, 
                New England, or Gulf of Mexico Fishery Management 
                Councils.

    (h) Funding.--Of the total amount made available for each fiscal 
year for the Gulf Coast Restoration Trust Fund established under section 
1602, 2.5 percent shall be available to carry out the program.
    (i) Sunset.--The program shall cease operations when all funds in 
the Gulf Coast Restoration Trust Fund established under section 1602 
have been expended.
SEC. 1605. <<NOTE: 33 USC 1321 note.>> CENTERS OF EXCELLENCE 
                          RESEARCH GRANTS.

    (a) In General.--Of the total amount made available for each fiscal 
year from the Gulf Coast Restoration Trust Fund established under 
section 1602, 2.5 percent shall be made available to the Gulf Coast 
States (as defined in section 311(a) of the Federal Water Pollution 
Control Act (as added by section 1603 of the Resources and Ecosystems 
Sustainability, Tourist Opportunities, and Revived Economies of the Gulf 
Coast States Act of 2012)), in equal shares, exclusively for grants in 
accordance with subsection (c) to establish centers of excellence to 
conduct research only on the Gulf Coast Region (as defined in section 
311 of the Federal Water Pollution Control Act (33. U.S.C. 1321)).
    (b) Approval by State Entity, Task Force, or Agency.--The duties of 
a Gulf Coast State under this section shall be carried out by the 
applicable Gulf Coast State entities, task forces, or agencies listed in 
section 311(t)(1)(F) of the Federal Water Pollution Control Act (as 
added by section 1603 of the Resources and Ecosystems Sustainability, 
Tourist Opportunities, and Revived Economies of the Gulf Coast States 
Act of 2012), and for the State of Florida, a consortium of public and 
private research institutions within the State, which shall include the 
Florida Department of Environmental Protection and the Florida Fish and 
Wildlife Conservation Commission, for that Gulf Coast State.
    (c) Grants.--
            (1) In general.--A Gulf Coast State shall use the amounts 
        made available to carry out this section to award competitive 
        grants to nongovernmental entities and consortia in the Gulf 
        Coast region (including public and private institutions of 
        higher education) for the establishment of centers of excellence 
        as described in subsection (d).
            (2) Application.--To be eligible to receive a grant under 
        this subsection, an entity or consortium described in paragraph

[[Page 126 STAT. 606]]

        (1) shall submit to a Gulf Coast State an application at such 
        time, in such manner, and containing such information as the 
        Gulf Coast State determines to be appropriate.
            (3) Priority.--In awarding grants under this subsection, a 
        Gulf Coast State shall give priority to entities and consortia 
        that demonstrate the ability to establish the broadest cross-
        section of participants with interest and expertise in any 
        discipline described in subsection (d) on which the proposal of 
        the center of excellence will be focused.
            (4) Reporting.--
                    (A) In general.--Each Gulf Coast State shall provide 
                annually to the Gulf Coast Ecosystem Restoration Council 
                established under section 311(t)(2)(C) of the Federal 
                Water Pollution Control Act (as added by section 1603 of 
                the Resources and Ecosystems Sustainability, Tourist 
                Opportunities, and Revived Economies of the Gulf Coast 
                States Act of 2012) information regarding all grants, 
                including the amount, discipline or disciplines, and 
                recipients of the grants, and in the case of any grant 
                awarded to a consortium, the membership of the 
                consortium.
                    (B) Inclusion.--The Gulf Coast Ecosystem Restoration 
                Council shall include the information received under 
                subparagraph (A) in the annual report to Congress of the 
                Council required under section 311(t)(2)(C)(vii)(VII) of 
                the Federal Water Pollution Control Act (as added by 
                section 1603 of the Resources and Ecosystems 
                Sustainability, Tourist Opportunities, and Revived 
                Economies of the Gulf Coast States Act of 2012).

    (d) Disciplines.--Each center of excellence shall focus on science, 
technology, and monitoring in at least 1 of the following disciplines:
            (1) Coastal and deltaic sustainability, restoration and 
        protection, including solutions and technology that allow 
        citizens to live in a safe and sustainable manner in a coastal 
        delta in the Gulf Coast Region.
            (2) Coastal fisheries and wildlife ecosystem research and 
        monitoring in the Gulf Coast Region.
            (3) Offshore energy development, including research and 
        technology to improve the sustainable and safe development of 
        energy resources in the Gulf of Mexico.
            (4) Sustainable and resilient growth, economic and 
        commercial development in the Gulf Coast Region.
            (5) Comprehensive observation, monitoring, and mapping of 
        the Gulf of Mexico.
SEC. 1606. <<NOTE: 33 USC 1321 note.>> EFFECT.

    (a) Definition of Deepwater Horizon Oil Spill.--In this section, the 
term ``Deepwater Horizon oil spill'' has the meaning given the term in 
section 311(a) of the Federal Water Pollution Control Act (33 U.S.C. 
1321(a)).
    (b) Effect and Application.--Nothing in this subtitle or any 
amendment made by this subtitle--
            (1) supersedes or otherwise affects any other provision of 
        Federal law, including, in particular, laws providing recovery 
        for injury to natural resources under the Oil Pollution Act of 
        1990 (33 U.S.C. 2701 et seq.) and laws for the protection of 
        public health and the environment; or

[[Page 126 STAT. 607]]

            (2) applies to any fine collected under section 311 of the 
        Federal Water Pollution Control Act (33 U.S.C. 1321) for any 
        incident other than the Deepwater Horizon oil spill.

    (c) Use of Funds.--Funds made available under this subtitle may be 
used only for eligible activities specifically authorized by this 
subtitle and the amendments made by this subtitle.
SEC. 1607. <<NOTE: 33 USC 1321 note.>> RESTORATION AND PROTECTION 
                          ACTIVITY LIMITATIONS.

    (a) Willing Seller.--Funds made available under this subtitle may 
only be used to acquire land or interests in land by purchase, exchange, 
or donation from a willing seller.
    (b) Acquisition of Federal Land.--None of the funds made available 
under this subtitle may be used to acquire land in fee title by the 
Federal Government unless--
            (1) the land is acquired by exchange or donation; or
            (2) the acquisition is necessary for the restoration and 
        protection of the natural resources, ecosystems, fisheries, 
        marine and wildlife habitats, beaches, and coastal wetlands of 
        the Gulf Coast region and has the concurrence of the Governor of 
        the State in which the acquisition will take place.
SEC. 1608. <<NOTE: Audits. Investigations. 33 USC 1321 
                          note.>> INSPECTOR GENERAL.

    The Office of the Inspector General of the Department of the 
Treasury shall have authority to conduct, supervise, and coordinate 
audits and investigations of projects, programs, and activities funded 
under this subtitle and the amendments made by this subtitle.

  TITLE II-- <<NOTE: America Fast Forward Financing Innovation Act of 
2012.>> AMERICA FAST FORWARD FINANCING INNOVATION
SEC. 2001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This title may be cited as the ``America Fast Forward Financing 
Innovation Act of 2012''.
SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION 
                          ACT OF 1998 AMENDMENTS.

    Sections 601 through 609 of title 23, United States Code, are 
amended to read as follows:
``Sec. 601. Generally applicable provisions

    ``(a) Definitions.--In this chapter, the following definitions 
apply:
            ``(1) Contingent commitment.--The term `contingent 
        commitment' means a commitment to obligate an amount from future 
        available budget authority that is--
                    ``(A) contingent on those funds being made available 
                in law at a future date; and
                    ``(B) not an obligation of the Federal Government.
            ``(2) Eligible project costs.--The term `eligible project 
        costs' means amounts substantially all of which are paid by, or 
        for the account of, an obligor in connection with a project, 
        including the cost of--
                    ``(A) development phase activities, including 
                planning, feasibility analysis, revenue forecasting, 
                environmental

[[Page 126 STAT. 608]]

                review, permitting, preliminary engineering and design 
                work, and other preconstruction activities;
                    ``(B) construction, reconstruction, rehabilitation, 
                replacement, and acquisition of real property (including 
                land relating to the project and improvements to land), 
                environmental mitigation, construction contingencies, 
                and acquisition of equipment; and
                    ``(C) capitalized interest necessary to meet market 
                requirements, reasonably required reserve funds, capital 
                issuance expenses, and other carrying costs during 
                construction.
            ``(3) Federal credit instrument.--The term `Federal credit 
        instrument' means a secured loan, loan guarantee, or line of 
        credit authorized to be made available under this chapter with 
        respect to a project.
            ``(4) Investment-grade rating.--The term `investment-grade 
        rating' means a rating of BBB minus, Baa3, bbb minus, BBB (low), 
        or higher assigned by a rating agency to project obligations.
            ``(5) Lender.--The term `lender' means any non-Federal 
        qualified institutional buyer (as defined in section 230.144A(a) 
        of title 17, Code of Federal Regulations (or any successor 
        regulation), known as Rule 144A(a) of the Securities and 
        Exchange Commission and issued under the Securities Act of 1933 
        (15 U.S.C. 77a et seq.)), including--
                    ``(A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                    ``(B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
            ``(6) Letter of interest.--The term `letter of interest' 
        means a letter submitted by a potential applicant prior to an 
        application for credit assistance in a format prescribed by the 
        Secretary on the website of the TIFIA program that--
                    ``(A) describes the project and the location, 
                purpose, and cost of the project;
                    ``(B) outlines the proposed financial plan, 
                including the requested credit assistance and the 
                proposed obligor;
                    ``(C) provides a status of environmental review; and
                    ``(D) provides information regarding satisfaction of 
                other eligibility requirements of the TIFIA program.
            ``(7) Line of credit.--The term `line of credit' means an 
        agreement entered into by the Secretary with an obligor under 
        section 604 to provide a direct loan at a future date upon the 
        occurrence of certain events.
            ``(8) Limited buydown.--The term `limited buydown' means, 
        subject to the conditions described in section 603(b)(4)(C), a 
        buydown of the interest rate by the obligor if the interest rate 
        has increased between--
                    ``(A)(i) the date on which a project application 
                acceptable to the Secretary is submitted; or
                    ``(ii) the date on which the Secretary entered into 
                a master credit agreement; and
                    ``(B) the date on which the Secretary executes the 
                Federal credit instrument.

[[Page 126 STAT. 609]]

            ``(9) Loan guarantee.--The term `loan guarantee' means any 
        guarantee or other pledge by the Secretary to pay all or part of 
        the principal of and interest on a loan or other debt obligation 
        issued by an obligor and funded by a lender.
            ``(10) Master credit agreement.--The term `master credit 
        agreement' means an agreement to extend credit assistance for a 
        program of projects secured by a common security pledge (which 
        shall receive an investment grade rating from a rating agency), 
        or for a single project covered under section 602(b)(2) that 
        would--
                    ``(A) make contingent commitments of 1 or more 
                secured loans or other Federal credit instruments at 
                future dates, subject to the availability of future 
                funds being made available to carry out this chapter;
                    ``(B) establish the maximum amounts and general 
                terms and conditions of the secured loans or other 
                Federal credit instruments;
                    ``(C) identify the 1 or more dedicated non-Federal 
                revenue sources that will secure the repayment of the 
                secured loans or secured Federal credit instruments;
                    ``(D) provide for the obligation of funds for the 
                secured loans or secured Federal credit instruments 
                after all requirements have been met for the projects 
                subject to the master credit agreement, including--
                          ``(i) completion of an environmental impact 
                      statement or similar analysis required under the 
                      National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.);
                          ``(ii) compliance with such other requirements 
                      as are specified in section 602(c); and
                          ``(iii) the availability of funds to carry out 
                      this chapter; and
                    ``(E) require that contingent commitments result in 
                a financial close and obligation of credit assistance 
                not later than 3 years after the date of entry into the 
                master credit agreement, or release of the commitment, 
                unless otherwise extended by the Secretary.
            ``(11) Obligor.--The term `obligor' means a party that--
                    ``(A) is primarily liable for payment of the 
                principal of or interest on a Federal credit instrument; 
                and
                    ``(B) may be a corporation, partnership, joint 
                venture, trust, or governmental entity, agency, or 
                instrumentality.
            ``(12) Project.--The term `project' means--
                    ``(A) any surface transportation project eligible 
                for Federal assistance under this title or chapter 53 of 
                title 49;
                    ``(B) a project for an international bridge or 
                tunnel for which an international entity authorized 
                under Federal or State law is responsible;
                    ``(C) a project for intercity passenger bus or rail 
                facilities and vehicles, including facilities and 
                vehicles owned by the National Railroad Passenger 
                Corporation and components of magnetic levitation 
                transportation systems; and
                    ``(D) a project that--
                          ``(i) is a project--
                                    ``(I) for a public freight rail 
                                facility or a private facility providing 
                                public benefit for highway users

[[Page 126 STAT. 610]]

                                by way of direct freight interchange 
                                between highway and rail carriers;
                                    ``(II) for an intermodal freight 
                                transfer facility;
                                    ``(III) for a means of access to a 
                                facility described in subclause (I) or 
                                (II);
                                    ``(IV) for a service improvement for 
                                a facility described in subclause (I) or 
                                (II) (including a capital investment for 
                                an intelligent transportation system); 
                                or
                                    ``(V) that comprises a series of 
                                projects described in subclauses (I) 
                                through (IV) with the common objective 
                                of improving the flow of goods;
                          ``(ii) may involve the combining of private 
                      and public sector funds, including investment of 
                      public funds in private sector facility 
                      improvements;
                          ``(iii) if located within the boundaries of a 
                      port terminal, includes only such surface 
                      transportation infrastructure modifications as are 
                      necessary to facilitate direct intermodal 
                      interchange, transfer, and access into and out of 
                      the port; and
                          ``(iv) is composed of related highway, surface 
                      transportation, transit, rail, or intermodal 
                      capital improvement projects eligible for 
                      assistance under this section in order to meet the 
                      eligible project cost threshold under section 602, 
                      by grouping related projects together for that 
                      purpose, subject to the condition that the credit 
                      assistance for the projects is secured by a common 
                      pledge.
            ``(13) Project obligation.--The term `project obligation' 
        means any note, bond, debenture, or other debt obligation issued 
        by an obligor in connection with the financing of a project, 
        other than a Federal credit instrument.
            ``(14) Rating agency.--The term `rating agency' means a 
        credit rating agency registered with the Securities and Exchange 
        Commission as a nationally recognized statistical rating 
        organization (as that term is defined in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
            ``(15) Rural infrastructure project.--The term `rural 
        infrastructure project' means a surface transportation 
        infrastructure project located in any area other than a city 
        with a population of more than 250,000 inhabitants within the 
        city limits.
            ``(16) Secured loan.--The term `secured loan' means a direct 
        loan or other debt obligation issued by an obligor and funded by 
        the Secretary in connection with the financing of a project 
        under section 603.
            ``(17) State.--The term `State' has the meaning given the 
        term in section 101.
            ``(18) Subsidy amount.--The term `subsidy amount' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument--
                    ``(A) calculated on a net present value basis; and
                    ``(B) excluding administrative costs and any 
                incidental effects on governmental receipts or outlays 
                in accordance with the Federal Credit Reform Act of 1990 
                (2 U.S.C. 661 et seq.).

[[Page 126 STAT. 611]]

            ``(19) Substantial completion.--The term `substantial 
        completion' means--
                    ``(A) the opening of a project to vehicular or 
                passenger traffic; or
                    ``(B) a comparable event, as determined by the 
                Secretary and specified in the credit agreement.
            ``(20) TIFIA program.--The term `TIFIA program' means the 
        transportation infrastructure finance and innovation program of 
        the Department.

    ``(b) Treatment of Chapter.--For purposes of this title, this 
chapter shall be treated as being part of chapter 1.
``Sec. 602. Determination of eligibility and project selection

    ``(a) Eligibility.--
            ``(1) In general.--A project shall be eligible to receive 
        credit assistance under this chapter if--
                    ``(A) the entity proposing to carry out the project 
                submits a letter of interest prior to submission of a 
                formal application for the project; and
                    ``(B) the project meets the criteria described in 
                this subsection.
            ``(2) Creditworthiness.--
                    ``(A) In general.--To be eligible for assistance 
                under this chapter, a project shall satisfy applicable 
                creditworthiness standards, which, at a minimum, shall 
                include--
                          ``(i) a rate covenant, if applicable;
                          ``(ii) adequate coverage requirements to 
                      ensure repayment;
                          ``(iii) an investment grade rating from at 
                      least 2 rating agencies on debt senior to the 
                      Federal credit instrument; and
                          ``(iv) a rating from at least 2 rating 
                      agencies on the Federal credit instrument, subject 
                      to the condition that, with respect to clause 
                      (iii), if the total amount of the senior debt and 
                      the Federal credit instrument is less than 
                      $75,000,000, 1 rating agency opinion for each of 
                      the senior debt and Federal credit instrument 
                      shall be sufficient.
                    ``(B) Senior debt.--Notwithstanding subparagraph 
                (A), in a case in which the Federal credit instrument is 
                the senior debt, the Federal credit instrument shall be 
                required to receive an investment grade rating from at 
                least 2 rating agencies, unless the credit instrument is 
                for an amount less than $75,000,000, in which case 1 
                rating agency opinion shall be sufficient.
            ``(3) Inclusion in transportation plans and programs.--A 
        project shall satisfy the applicable planning and programming 
        requirements of sections 134 and 135 at such time as an 
        agreement to make available a Federal credit instrument is 
        entered into under this chapter.
            ``(4) Application.--A State, local government, public 
        authority, public-private partnership, or any other legal entity 
        undertaking the project and authorized by the Secretary shall 
        submit a project application that is acceptable to the 
        Secretary.
            ``(5) Eligible project costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible for assistance under 
                this chapter, a

[[Page 126 STAT. 612]]

                project shall have eligible project costs that are 
                reasonably anticipated to equal or exceed the lesser 
                of--
                          ``(i)(I) $50,000,000; or
                          ``(II) in the case of a rural infrastructure 
                      project, $25,000,000; and
                          ``(ii) 33\1/3\ percent of the amount of 
                      Federal highway assistance funds apportioned for 
                      the most recently completed fiscal year to the 
                      State in which the project is located.
                    ``(B) Intelligent transportation system projects.--
                In the case of a project principally involving the 
                installation of an intelligent transportation system, 
                eligible project costs shall be reasonably anticipated 
                to equal or exceed $15,000,000.
            ``(6) Dedicated revenue sources.--The applicable Federal 
        credit instrument shall be repayable, in whole or in part, 
        from--
                    ``(A) tolls;
                    ``(B) user fees;
                    ``(C) payments owing to the obligor under a public-
                private partnership; or
                    ``(D) other dedicated revenue sources that also 
                secure or fund the project obligations.
            ``(7) Public sponsorship of private entities.--In the case 
        of a project that is undertaken by an entity that is not a State 
        or local government or an agency or instrumentality of a State 
        or local government, the project that the entity is undertaking 
        shall be publicly sponsored as provided in paragraph (3).
            ``(8) Applications where obligor will be identified later.--
        A State, local government, agency or instrumentality of a State 
        or local government, or public authority may submit to the 
        Secretary an application under paragraph (4), under which a 
        private party to a public-private partnership will be--
                    ``(A) the obligor; and
                    ``(B) identified later through completion of a 
                procurement and selection of the private party.
            ``(9) Beneficial effects.-- <<NOTE: Determination.>> The 
        Secretary shall determine that financial assistance for the 
        project under this chapter will--
                    ``(A) foster, if appropriate, partnerships that 
                attract public and private investment for the project;
                    ``(B) enable the project to proceed at an earlier 
                date than the project would otherwise be able to proceed 
                or reduce the lifecycle costs (including debt service 
                costs) of the project; and
                    ``(C) reduce the contribution of Federal grant 
                assistance for the project.
            ``(10) Project readiness.-- <<NOTE: Deadline.>> To be 
        eligible for assistance under this chapter, the applicant shall 
        demonstrate a reasonable expectation that the contracting 
        process for construction of the project can commence by not 
        later than 90 days after the date on which a Federal credit 
        instrument is obligated for the project under this chapter.

    ``(b) Selection Among Eligible Projects.--
            ``(1) Establishment.--The Secretary shall establish a 
        rolling application process under which projects that are 
        eligible to receive credit assistance under subsection (a) shall 
        receive

[[Page 126 STAT. 613]]

        credit assistance on terms acceptable to the Secretary, if 
        adequate funds are available to cover the subsidy costs 
        associated with the Federal credit instrument.
            ``(2) Adequate funding not available.--If the Secretary 
        fully obligates funding to eligible projects in a fiscal year, 
        and adequate funding is not available to fund a credit 
        instrument, a project sponsor of an eligible project may elect 
        to enter into a master credit agreement and wait until the 
        earlier of--
                    ``(A) the following fiscal year; and
                    ``(B) the fiscal year during which additional funds 
                are available to receive credit assistance.
            ``(3) Preliminary rating opinion letter.--The Secretary 
        shall require each project applicant to provide a preliminary 
        rating opinion letter from at least 1 rating agency--
                    ``(A) indicating that the senior obligations of the 
                project, which may be the Federal credit instrument, 
                have the potential to achieve an investment-grade 
                rating; and
                    ``(B) including a preliminary rating opinion on the 
                Federal credit instrument.

    ``(c) Federal Requirements.--
            ``(1) In general.-- <<NOTE: Applicability.>> In addition to 
        the requirements of this title for highway projects, the 
        requirements of chapter 53 of title 49 for transit projects, and 
        the requirements of section 5333(a) of title 49 for rail 
        projects, the following provisions of law shall apply to funds 
        made available under this chapter and projects assisted with 
        those funds:
                    ``(A) Title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.).
                    ``(B) The National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.).
                    ``(C) The Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970 (42 U.S.C. 
                4601 et seq.).
            ``(2) NEPA.--No funding shall be obligated for a project 
        that has not received an environmental categorical exclusion, a 
        finding of no significant impact, or a record of decision under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).

    ``(d) <<NOTE: Deadlines.>> Application Processing Procedures.--
            ``(1) Notice of complete application.--Not later than 30 
        days after the date of receipt of an application under this 
        section, the Secretary shall provide to the applicant a written 
        notice to inform the applicant whether--
                    ``(A) the application is complete; or
                    ``(B) additional information or materials are needed 
                to complete the application.
            ``(2) Approval or denial of application.-- 
        <<NOTE: Notification.>> Not later than 60 days after the date of 
        issuance of the written notice under paragraph (1), the 
        Secretary shall provide to the applicant a written notice 
        informing the applicant whether the Secretary has approved or 
        disapproved the application.

    ``(e) Development Phase Activities.--Any credit instrument secured 
under this chapter may be used to finance up to 100 percent of the cost 
of development phase activities as described in section 601(a)(1)(A).

[[Page 126 STAT. 614]]

``Sec. 603. Secured loans

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) and (3), the 
        Secretary may enter into agreements with 1 or more obligors to 
        make secured loans, the proceeds of which shall be used--
                    ``(A) to finance eligible project costs of any 
                project selected under section 602;
                    ``(B) to refinance interim construction financing of 
                eligible project costs of any project selected under 
                section 602;
                    ``(C) to refinance existing Federal credit 
                instruments for rural infrastructure projects; or
                    ``(D) to refinance long-term project obligations or 
                Federal credit instruments, if the refinancing provides 
                additional funding capacity for the completion, 
                enhancement, or expansion of any project that--
                          ``(i) is selected under section 602; or
                          ``(ii) otherwise meets the requirements of 
                      section 602.
            ``(2) Limitation on refinancing of interim construction 
        financing.-- <<NOTE: Time period.>> A loan under paragraph (1) 
        shall not refinance interim construction financing under 
        paragraph (1)(B) later than 1 year after the date of substantial 
        completion of the project.
            ``(3) Risk assessment.-- <<NOTE: Determination.>> Before 
        entering into an agreement under this subsection, the Secretary, 
        in consultation with the Director of the Office of Management 
        and Budget, shall determine an appropriate capital reserve 
        subsidy amount for each secured loan, taking into account each 
        rating letter provided by an agency under section 602(b)(3)(B).

    ``(b) Terms and Limitations.--
            ``(1) In general.--A secured loan under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines to be appropriate.
            ``(2) Maximum amount.--The amount of a secured loan under 
        this section shall not exceed the lesser of 49 percent of the 
        reasonably anticipated eligible project costs or if the secured 
        loan does not receive an investment grade rating, the amount of 
        the senior project obligations.
            ``(3) Payment.--A secured loan under this section--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from--
                                    ``(I) tolls;
                                    ``(II) user fees;
                                    ``(III) payments owing to the 
                                obligor under a public-private 
                                partnership; or
                                    ``(IV) other dedicated revenue 
                                sources that also secure the senior 
                                project obligations; and
                          ``(ii) include a rate covenant, coverage 
                      requirement, or similar security feature 
                      supporting the project obligations; and
                    ``(B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            ``(4) Interest rate.--

[[Page 126 STAT. 615]]

                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the interest rate on a 
                secured loan under this section shall be not less than 
                the yield on United States Treasury securities of a 
                similar maturity to the maturity of the secured loan on 
                the date of execution of the loan agreement.
                    ``(B) Rural infrastructure projects.--
                          ``(i) In general.--The interest rate of a loan 
                      offered to a rural infrastructure project under 
                      this chapter shall be at \1/2\ of the Treasury 
                      Rate in effect on the date of execution of the 
                      loan agreement.
                          ``(ii) Application.--The rate described in 
                      clause (i) shall only apply to any portion of a 
                      loan the subsidy cost of which is funded by 
                      amounts set aside for rural infrastructure 
                      projects under section 608(a)(3)(A).
                    ``(C) Limited buydowns.--The interest rate of a 
                secured loan under this section may not be lowered by 
                more than the lower of--
                          ``(i) 1\1/2\ percentage points (150 basis 
                      points); or
                          ``(ii) the amount of the increase in the 
                      interest rate.
            ``(5) Maturity date.--The final maturity date of the secured 
        loan shall be the lesser of--
                    ``(A) 35 years after the date of substantial 
                completion of the project; and
                    ``(B) if the useful life of the capital asset being 
                financed is of a lesser period, the useful life of the 
                asset.
            ``(6) Nonsubordination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the secured loan shall not be 
                subordinated to the claims of any holder of project 
                obligations in the event of bankruptcy, insolvency, or 
                liquidation of the obligor.
                    ``(B) Preexisting indenture.--
                          ``(i) In general.-- <<NOTE: Waiver 
                      authority.>> The Secretary shall waive the 
                      requirement under subparagraph (A) for a public 
                      agency borrower that is financing ongoing capital 
                      programs and has outstanding senior bonds under a 
                      preexisting indenture, if--
                                    ``(I) the secured loan is rated in 
                                the A category or higher;
                                    ``(II) the secured loan is secured 
                                and payable from pledged revenues not 
                                affected by project performance, such as 
                                a tax-backed revenue pledge or a system-
                                backed pledge of project revenues; and
                                    ``(III) the TIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                          ``(ii) Limitation.--If the Secretary waives 
                      the nonsubordination requirement under this 
                      subparagraph--
                                    ``(I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    ``(II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost, if any.
            ``(7) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the Federal 
        Government of making a secured loan under this section.

[[Page 126 STAT. 616]]

            ``(8) Non-federal share.--The proceeds of a secured loan 
        under this chapter may be used for any non-Federal share of 
        project costs required under this title or chapter 53 of title 
        49, if the loan is repayable from non-Federal funds.
            ``(9) Maximum federal involvement.--The total Federal 
        assistance provided on a project receiving a loan under this 
        chapter shall not exceed 80 percent of the total project cost.

    ``(c) Repayment.--
            ``(1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan under this section based on--
                    ``(A) the projected cash flow from project revenues 
                and other repayment sources; and
                    ``(B) the useful life of the project.
            ``(2) Commencement.--Scheduled loan repayments of principal 
        or interest on a secured loan under this section shall commence 
        not later than 5 years after the date of substantial completion 
        of the project.
            ``(3) Deferred payments.--
                    ``(A) In general.--If, at any time after the date of 
                substantial completion of the project, the project is 
                unable to generate sufficient revenues to pay the 
                scheduled loan repayments of principal and interest on 
                the secured loan, the Secretary may, subject to 
                subparagraph (C), allow the obligor to add unpaid 
                principal and interest to the outstanding balance of the 
                secured loan.
                    ``(B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                          ``(i) continue to accrue interest in 
                      accordance with subsection (b)(4) until fully 
                      repaid; and
                          ``(ii) be scheduled to be amortized over the 
                      remaining term of the loan.
                    ``(C) Criteria.--
                          ``(i) In general.--Any payment deferral under 
                      subparagraph (A) shall be contingent on the 
                      project meeting criteria established by the 
                      Secretary.
                          ``(ii) Repayment standards.--The criteria 
                      established pursuant to clause (i) shall include 
                      standards for reasonable assurance of repayment.
            ``(4) Prepayment.--
                    ``(A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured loan 
                and all deposit requirements under the terms of any 
                trust agreement, bond resolution, or similar agreement 
                securing project obligations may be applied annually to 
                prepay the secured loan without penalty.
                    ``(B) Use of proceeds of refinancing.--The secured 
                loan may be prepaid at any time without penalty from the 
                proceeds of refinancing from non-Federal funding 
                sources.

    ``(d) Sale of Secured Loans.--
            ``(1) In general.--Subject to paragraph (2), as soon as 
        practicable after substantial completion of a project and after 
        notifying the obligor, the Secretary may sell to another entity 
        or reoffer into the capital markets a secured loan for the 
        project if the Secretary determines that the sale or reoffering 
        can be made on favorable terms.

[[Page 126 STAT. 617]]

            ``(2) Consent of obligor.--In making a sale or reoffering 
        under paragraph (1), the Secretary may not change the original 
        terms and conditions of the secured loan without the written 
        consent of the obligor.

    ``(e) Loan Guarantees.--
            ``(1) In general.--The Secretary may provide a loan 
        guarantee to a lender in lieu of making a secured loan under 
        this section if the Secretary determines that the budgetary cost 
        of the loan guarantee is substantially the same as that of a 
        secured loan.
            ``(2) Terms.--The terms of a loan guarantee under paragraph 
        (1) shall be consistent with the terms required under this 
        section for a secured loan, except that the rate on the 
        guaranteed loan and any prepayment features shall be negotiated 
        between the obligor and the lender, with the consent of the 
        Secretary.
``Sec. 604. Lines of credit

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) through (4), 
        the Secretary may enter into agreements to make available to 1 
        or more obligors lines of credit in the form of direct loans to 
        be made by the Secretary at future dates on the occurrence of 
        certain events for any project selected under section 602.
            ``(2) Use of proceeds.--The proceeds of a line of credit 
        made available under this section shall be available to pay debt 
        service on project obligations issued to finance eligible 
        project costs, extraordinary repair and replacement costs, 
        operation and maintenance expenses, and costs associated with 
        unexpected Federal or State environmental restrictions.
            ``(3) Risk assessment.-- <<NOTE: Determination.>> Before 
        entering into an agreement under this subsection, the Secretary, 
        in consultation with the Director of the Office of Management 
        and Budget and each rating agency providing a preliminary rating 
        opinion letter under section 602(b)(3), shall determine an 
        appropriate capital reserve subsidy amount for each line of 
        credit, taking into account the rating opinion letter.
            ``(4) Investment-grade rating requirement.--The funding of a 
        line of credit under this section shall be contingent on the 
        senior obligations of the project receiving an investment-grade 
        rating from 2 rating agencies.

    ``(b) Terms and Limitations.--
            ``(1) In general.--A line of credit under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines to be appropriate.
            ``(2) Maximum amounts.--The total amount of a line of credit 
        under this section shall not exceed 33 percent of the reasonably 
        anticipated eligible project costs.
            ``(3) Draws.--Any draw on a line of credit under this 
        section shall--
                    ``(A) represent a direct loan; and
                    ``(B) be made only if net revenues from the project 
                (including capitalized interest, but not including 
                reasonably

[[Page 126 STAT. 618]]

                required financing reserves) are insufficient to pay the 
                costs specified in subsection (a)(2).
            ``(4) Interest rate.--Except as provided in subparagraphs 
        (B) and (C) of section 603(b)(4), the interest rate on a direct 
        loan resulting from a draw on the line of credit shall be not 
        less than the yield on 30-year United States Treasury 
        securities, as of the date of execution of the line of credit 
        agreement.
            ``(5) Security.--A line of credit issued under this 
        section--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from--
                                    ``(I) tolls;
                                    ``(II) user fees;
                                    ``(III) payments owing to the 
                                obligor under a public-private 
                                partnership; or
                                    ``(IV) other dedicated revenue 
                                sources that also secure the senior 
                                project obligations; and
                          ``(ii) include a rate covenant, coverage 
                      requirement, or similar security feature 
                      supporting the project obligations; and
                    ``(B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            ``(6) Period of availability.--The full amount of a line of 
        credit under this section, to the extent not drawn upon, shall 
        be available during the 10-year period beginning on the date of 
        substantial completion of the project.
            ``(7) Rights of third-party creditors.--
                    ``(A) Against federal government.--A third-party 
                creditor of the obligor shall not have any right against 
                the Federal Government with respect to any draw on a 
                line of credit under this section.
                    ``(B) Assignment.--An obligor may assign a line of 
                credit under this section to--
                          ``(i) 1 or more lenders; or
                          ``(ii) a trustee on the behalf of such a 
                      lender.
            ``(8) Nonsubordination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a direct loan under this section shall 
                not be subordinated to the claims of any holder of 
                project obligations in the event of bankruptcy, 
                insolvency, or liquidation of the obligor.
                    ``(B) Pre-existing indenture.--
                          ``(i) In general.-- <<NOTE: Waiver 
                      authority.>> The Secretary shall waive the 
                      requirement of subparagraph (A) for a public 
                      agency borrower that is financing ongoing capital 
                      programs and has outstanding senior bonds under a 
                      preexisting indenture, if--
                                    ``(I) the line of credit is rated in 
                                the A category or higher;
                                    ``(II) the TIFIA program loan 
                                resulting from a draw on the line of 
                                credit is payable from pledged revenues 
                                not affected by project performance, 
                                such as a tax-backed revenue pledge or a 
                                system-backed pledge of project 
                                revenues; and
                                    ``(III) the TIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                          ``(ii) Limitation.--If the Secretary waives 
                      the nonsubordination requirement under this 
                      subparagraph--

[[Page 126 STAT. 619]]

                                    ``(I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    ``(II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost.
            ``(9) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the Federal 
        Government of providing a line of credit under this section.
            ``(10) Relationship to other credit instruments.--A project 
        that receives a line of credit under this section also shall not 
        receive a secured loan or loan guarantee under section 603 in an 
        amount that, combined with the amount of the line of credit, 
        exceeds 49 percent of eligible project costs.

    ``(c) Repayment.--
            ``(1) Terms and conditions.--The Secretary shall establish 
        repayment terms and conditions for each direct loan under this 
        section based on--
                    ``(A) the projected cash flow from project revenues 
                and other repayment sources; and
                    ``(B) the useful life of the asset being financed.
            ``(2) Timing.--All repayments of principal or interest on a 
        direct loan under this section shall be scheduled--
                    ``(A) to commence not later than 5 years after the 
                end of the period of availability specified in 
                subsection (b)(6); and
                    ``(B) to conclude, with full repayment of principal 
                and interest, by the date that is 25 years after the end 
                of the period of availability specified in subsection 
                (b)(6).
``Sec. 605. Program administration

    ``(a) Requirement.--The Secretary shall establish a uniform system 
to service the Federal credit instruments made available under this 
chapter.
    ``(b) Fees.--The Secretary may collect and spend fees, contingent on 
authority being provided in appropriations Acts, at a level that is 
sufficient to cover--
            ``(1) the costs of services of expert firms retained 
        pursuant to subsection (d); and
            ``(2) all or a portion of the costs to the Federal 
        Government of servicing the Federal credit instruments.

    ``(c) Servicer.--
            ``(1) In general.--The Secretary may appoint a financial 
        entity to assist the Secretary in servicing the Federal credit 
        instruments.
            ``(2) Duties.--A servicer appointed under paragraph (1) 
        shall act as the agent for the Secretary.
            ``(3) Fee.--A servicer appointed under paragraph (1) shall 
        receive a servicing fee, subject to approval by the Secretary.

    ``(d) Assistance From Expert Firms.--The Secretary may retain the 
services of expert firms, including counsel, in the field of municipal 
and project finance to assist in the underwriting and servicing of 
Federal credit instruments.
    ``(e) Expedited Processing.-- <<NOTE: Procedures.>> The Secretary 
shall implement procedures and measures to economize the time and cost 
involved in obtaining approval and the issuance of credit assistance 
under this chapter.

[[Page 126 STAT. 620]]

``Sec. 606. State and local permits

    ``The provision of credit assistance under this chapter with respect 
to a project shall not--
            ``(1) relieve any recipient of the assistance of any 
        obligation to obtain any required State or local permit or 
        approval with respect to the project;
            ``(2) limit the right of any unit of State or local 
        government to approve or regulate any rate of return on private 
        equity invested in the project; or
            ``(3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the project.
``Sec. 607. Regulations

    ``The Secretary may promulgate such regulations as the Secretary 
determines to be appropriate to carry out this chapter.
``Sec. 608. Funding

    ``(a) Funding.--
            ``(1) Spending and borrowing authority.--Spending and 
        borrowing authority for a fiscal year to enter into Federal 
        credit instruments shall be promptly apportioned to the 
        Secretary on a fiscal-year basis.
            ``(2) Reestimates.--If the subsidy cost of a Federal credit 
        instrument is reestimated, the cost increase or decrease of the 
        reestimate shall be borne by, or benefit, the general fund of 
        the Treasury, consistent with section 504(f) the Congressional 
        Budget Act of 1974 (2 U.S.C. 661c(f)).
            ``(3) Rural set-aside.--
                    ``(A) In general.--Of the total amount of funds made 
                available to carry out this chapter for each fiscal 
                year, not more than 10 percent shall be set aside for 
                rural infrastructure projects.
                    ``(B) Reobligation.--Any amounts set aside under 
                subparagraph (A) that remain unobligated by June 1 of 
                the fiscal year for which the amounts were set aside 
                shall be available for obligation by the Secretary on 
                projects other than rural infrastructure projects.
            ``(4) Redistribution of authorized funding.--
                    ``(A) In general.-- <<NOTE: Effective 
                date.>> Beginning in fiscal year 2014, on April 1 of 
                each fiscal year, if the cumulative unobligated and 
                uncommitted balance of funding available exceeds 75 
                percent of the amount made available to carry out this 
                chapter for that fiscal year, the Secretary shall 
                distribute to the States the amount of funds and 
                associated obligation authority in excess of that 
                amount.
                    ``(B) Distribution.--The amounts and obligation 
                authority distributed under this paragraph shall be 
                distributed, in the same manner as obligation authority 
                is distributed to the States for the fiscal year, based 
                on the proportion that--
                          ``(i) the relative share of each State of 
                      obligation authority for the fiscal year; bears to
                          ``(ii) the total amount of obligation 
                      authority distributed to all States for the fiscal 
                      year.

[[Page 126 STAT. 621]]

                    ``(C) Purpose.--Funds distributed under subparagraph 
                (B) shall be available for any purpose described in 
                section 133(b).
            ``(5) Availability.--Amounts made available to carry out 
        this chapter shall remain available until expended.
            ``(6) Administrative costs.--Of the amounts made available 
        to carry out this chapter, the Secretary may use not more than 
        0.50 percent for each fiscal year for the administration of this 
        chapter.

    ``(b) Contract Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, execution of a term sheet by the Secretary of a Federal 
        credit instrument that uses amounts made available under this 
        chapter shall impose on the United States a contractual 
        obligation to fund the Federal credit investment.
            ``(2) Availability.--Amounts made available to carry out 
        this chapter for a fiscal year shall be available for obligation 
        on October 1 of the fiscal year.
``Sec. 609. Reports to Congress

    ``(a) In General.-- <<NOTE: Effective date.>> On June 1, 2012, and 
every 2 years thereafter, the Secretary shall submit to Congress a 
report summarizing the financial performance of the projects that are 
receiving, or have received, assistance under this chapter (other than 
section 610), including a recommendation as to whether the objectives of 
this chapter (other than section 610) are best served by--
            ``(1) continuing the program under the authority of the 
        Secretary;
            ``(2) establishing a Federal corporation or federally 
        sponsored enterprise to administer the program; or
            ``(3) phasing out the program and relying on the capital 
        markets to fund the types of infrastructure investments assisted 
        by this chapter (other than section 610) without Federal 
        participation.

    ``(b) Application Process Report.--
            ``(1) In general.-- <<NOTE: List.>> Not later than December 
        1, 2012, and annually thereafter, the Secretary shall submit to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Environment and Public 
        Works of the Senate a report that includes a list of all of the 
        letters of interest and applications received from project 
        sponsors for assistance under this chapter (other than section 
        610) during the preceding fiscal year.
            ``(2) Inclusions.--
                    ``(A) In general.--Each report under paragraph (1) 
                shall include, at a minimum, a description of, with 
                respect to each letter of interest and application 
                included in the report--
                          ``(i) the date on which the letter of interest 
                      or application was received;
                          ``(ii) the date on which a notification was 
                      provided to the project sponsor regarding whether 
                      the application was complete or incomplete;
                          ``(iii) the date on which a revised and 
                      completed application was submitted (if 
                      applicable);

[[Page 126 STAT. 622]]

                          ``(iv) the date on which a notification was 
                      provided to the project sponsor regarding whether 
                      the project was approved or disapproved; and
                          ``(v) if the project was not approved, the 
                      reason for the disapproval.
                    ``(B) Correspondence.--Each report under paragraph 
                (1) shall include copies of any correspondence provided 
                to the project sponsor in accordance with section 
                602(d).''.

DIVISION B-- <<NOTE: Federal Public Transportation Act of 2012.>> PUBLIC 
TRANSPORTATION
SEC. 20001. <<NOTE: 49 USC 5101 note.>> SHORT TITLE.

    This division may be cited as the ``Federal Public Transportation 
Act of 2012''.
SEC. 20002. REPEALS.

    (a) Chapter 53.--Chapter 53 of title 49, United States Code, is 
amended by striking sections 5308, 5316, 5317, 5320, and 5328.
    (b) Transportation Equity Act for the 21st Century.--Section 3038 of 
the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note) 
is repealed.
    (c) SAFETEA-LU.--The following provisions are repealed:
            (1) Section 3009(i) of SAFETEA-LU (Public Law 109-59; 119 
        Stat. 1572).
            (2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309 note).
            (3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310 note).
            (4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308 note).
            (5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note).
SEC. 20003. POLICIES AND PURPOSES.

    Section 5301 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5301. Policies and purposes

    ``(a) Declaration of Policy.--It is in the interest of the United 
States, including the economic interest of the United States, to foster 
the development and revitalization of public transportation systems with 
the cooperation of both public transportation companies and private 
companies engaged in public transportation.
    ``(b) General Purposes.--The purposes of this chapter are to--
            ``(1) provide funding to support public transportation;
            ``(2) improve the development and delivery of capital 
        projects;
            ``(3) establish standards for the state of good repair of 
        public transportation infrastructure and vehicles;
            ``(4) promote continuing, cooperative, and comprehensive 
        planning that improves the performance of the transportation 
        network;
            ``(5) establish a technical assistance program to assist 
        recipients under this chapter to more effectively and 
        efficiently provide public transportation service;
            ``(6) continue Federal support for public transportation 
        providers to deliver high quality service to all users, 
        including individuals with disabilities, seniors, and 
        individuals who depend on public transportation;

[[Page 126 STAT. 623]]

            ``(7) support research, development, demonstration, and 
        deployment projects dedicated to assisting in the delivery of 
        efficient and effective public transportation service; and
            ``(8) promote the development of the public transportation 
        workforce.''.
SEC. 20004. DEFINITIONS.

    Section 5302 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5302. Definitions

    ``Except as otherwise specifically provided, in this chapter the 
following definitions apply:
            ``(1) Associated transit improvement.--The term `associated 
        transit improvement' means, with respect to any project or an 
        area to be served by a project, projects that are designed to 
        enhance public transportation service or use and that are 
        physically or functionally related to transit facilities. 
        Eligible projects are--
                    ``(A) historic preservation, rehabilitation, and 
                operation of historic public transportation buildings, 
                structures, and facilities (including historic bus and 
                railroad facilities) intended for use in public 
                transportation service;
                    ``(B) bus shelters;
                    ``(C) landscaping and streetscaping, including 
                benches, trash receptacles, and street lights;
                    ``(D) pedestrian access and walkways;
                    ``(E) bicycle access, including bicycle storage 
                facilities and installing equipment for transporting 
                bicycles on public transportation vehicles;
                    ``(F) signage; or
                    ``(G) enhanced access for persons with disabilities 
                to public transportation.
            ``(2) Bus rapid transit system.--The term `bus rapid transit 
        system' means a bus transit system--
                    ``(A) in which the majority of each line operates in 
                a separated right-of-way dedicated for public 
                transportation use during peak periods; and
                    ``(B) that includes features that emulate the 
                services provided by rail fixed guideway public 
                transportation systems, including--
                          ``(i) defined stations;
                          ``(ii) traffic signal priority for public 
                      transportation vehicles;
                          ``(iii) short headway bidirectional services 
                      for a substantial part of weekdays and weekend 
                      days; and
                          ``(iv) any other features the Secretary may 
                      determine are necessary to produce high-quality 
                      public transportation services that emulate the 
                      services provided by rail fixed guideway public 
                      transportation systems.
            ``(3) Capital project.--The term `capital project' means a 
        project for--
                    ``(A) acquiring, constructing, supervising, or 
                inspecting equipment or a facility for use in public 
                transportation, expenses incidental to the acquisition 
                or construction

[[Page 126 STAT. 624]]

                (including designing, engineering, location surveying, 
                mapping, and acquiring rights-of-way), payments for the 
                capital portions of rail trackage rights agreements, 
                transit-related intelligent transportation systems, 
                relocation assistance, acquiring replacement housing 
                sites, and acquiring, constructing, relocating, and 
                rehabilitating replacement housing;
                    ``(B) rehabilitating a bus;
                    ``(C) remanufacturing a bus;
                    ``(D) overhauling rail rolling stock;
                    ``(E) preventive maintenance;
                    ``(F) leasing equipment or a facility for use in 
                public transportation, subject to regulations that the 
                Secretary prescribes limiting the leasing arrangements 
                to those that are more cost-effective than purchase or 
                construction;
                    ``(G) a joint development improvement that--
                          ``(i) enhances economic development or 
                      incorporates private investment, such as 
                      commercial and residential development;
                          ``(ii)(I) enhances the effectiveness of public 
                      transportation and is related physically or 
                      functionally to public transportation; or
                          ``(II) establishes new or enhanced 
                      coordination between public transportation and 
                      other transportation;
                          ``(iii) provides a fair share of revenue that 
                      will be used for public transportation;
                          ``(iv) provides that a person making an 
                      agreement to occupy space in a facility 
                      constructed under this paragraph shall pay a fair 
                      share of the costs of the facility through rental 
                      payments and other means;
                          ``(v) may include--
                                    ``(I) property acquisition;
                                    ``(II) demolition of existing 
                                structures;
                                    ``(III) site preparation;
                                    ``(IV) utilities;
                                    ``(V) building foundations;
                                    ``(VI) walkways;
                                    ``(VII) pedestrian and bicycle 
                                access to a public transportation 
                                facility;
                                    ``(VIII) construction, renovation, 
                                and improvement of intercity bus and 
                                intercity rail stations and terminals;
                                    ``(IX) renovation and improvement of 
                                historic transportation facilities;
                                    ``(X) open space;
                                    ``(XI) safety and security equipment 
                                and facilities (including lighting, 
                                surveillance, and related intelligent 
                                transportation system applications);
                                    ``(XII) facilities that incorporate 
                                community services such as daycare or 
                                health care;
                                    ``(XIII) a capital project for, and 
                                improving, equipment or a facility for 
                                an intermodal transfer facility or 
                                transportation mall; and
                                    ``(XIV) construction of space for 
                                commercial uses; and

[[Page 126 STAT. 625]]

                          ``(vi) does not include outfitting of 
                      commercial space (other than an intercity bus or 
                      rail station or terminal) or a part of a public 
                      facility not related to public transportation;
                    ``(H) the introduction of new technology, through 
                innovative and improved products, into public 
                transportation;
                    ``(I) the provision of nonfixed route paratransit 
                transportation services in accordance with section 223 
                of the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12143), but only for grant recipients that are in 
                compliance with applicable requirements of that Act, 
                including both fixed route and demand responsive 
                service, and only for amounts not to exceed 10 percent 
                of such recipient's annual formula apportionment under 
                sections 5307 and 5311;
                    ``(J) establishing a debt service reserve, made up 
                of deposits with a bondholder's trustee, to ensure the 
                timely payment of principal and interest on bonds issued 
                by a grant recipient to finance an eligible project 
                under this chapter;
                    ``(K) mobility management--
                          ``(i) consisting of short-range planning and 
                      management activities and projects for improving 
                      coordination among public transportation and other 
                      transportation service providers carried out by a 
                      recipient or subrecipient through an agreement 
                      entered into with a person, including a 
                      governmental entity, under this chapter (other 
                      than section 5309); but
                          ``(ii) excluding operating public 
                      transportation services; or
                    ``(L) associated capital maintenance, including--
                          ``(i) equipment, tires, tubes, and material, 
                      each costing at least .5 percent of the current 
                      fair market value of rolling stock comparable to 
                      the rolling stock for which the equipment, tires, 
                      tubes, and material are to be used; and
                          ``(ii) reconstruction of equipment and 
                      material, each of which after reconstruction will 
                      have a fair market value of at least .5 percent of 
                      the current fair market value of rolling stock 
                      comparable to the rolling stock for which the 
                      equipment and material will be used.
            ``(4) Designated recipient.--The term `designated recipient' 
        means--
                    ``(A) an entity designated, in accordance with the 
                planning process under sections 5303 and 5304, by the 
                Governor of a State, responsible local officials, and 
                publicly owned operators of public transportation, to 
                receive and apportion amounts under section 5336 to 
                urbanized areas of 200,000 or more in population; or
                    ``(B) a State or regional authority, if the 
                authority is responsible under the laws of a State for a 
                capital project and for financing and directly providing 
                public transportation.
            ``(5) Disability.--The term `disability' has the same 
        meaning as in section 3(1) of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12102).

[[Page 126 STAT. 626]]

            ``(6) Emergency regulation.--The term `emergency regulation' 
        means a regulation--
                    ``(A) that is effective temporarily before the 
                expiration of the otherwise specified periods of time 
                for public notice and comment under section 5334(c); and
                    ``(B) prescribed by the Secretary as the result of a 
                finding that a delay in the effective date of the 
                regulation--
                          ``(i) would injure seriously an important 
                      public interest;
                          ``(ii) would frustrate substantially 
                      legislative policy and intent; or
                          ``(iii) would damage seriously a person or 
                      class without serving an important public 
                      interest.
            ``(7) Fixed guideway.--The term `fixed guideway' means a 
        public transportation facility--
                    ``(A) using and occupying a separate right-of-way 
                for the exclusive use of public transportation;
                    ``(B) using rail;
                    ``(C) using a fixed catenary system;
                    ``(D) for a passenger ferry system; or
                    ``(E) for a bus rapid transit system.
            ``(8) Governor.--The term `Governor'--
                    ``(A) means the Governor of a State, the mayor of 
                the District of Columbia, and the chief executive 
                officer of a territory of the United States; and
                    ``(B) includes the designee of the Governor.
            ``(9) Job access and reverse commute project.--
                    ``(A) In general.--The term `job access and reverse 
                commute project' means a transportation project to 
                finance planning, capital, and operating costs that 
                support the development and maintenance of 
                transportation services designed to transport welfare 
                recipients and eligible low-income individuals to and 
                from jobs and activities related to their employment, 
                including transportation projects that facilitate the 
                provision of public transportation services from 
                urbanized areas and rural areas to suburban employment 
                locations.
                    ``(B) Definitions.--In this paragraph:
                          ``(i) Eligible low-income individual.--The 
                      term `eligible low-income individual' means an 
                      individual whose family income is at or below 150 
                      percent of the poverty line (as that term is 
                      defined in section 673(2) of the Community Service 
                      Block Grant Act (42 U.S.C. 9902(2)), including any 
                      revision required by that section) for a family of 
                      the size involved.
                          ``(ii) Welfare recipient.--The term `welfare 
                      recipient' means an individual who has received 
                      assistance under a State or tribal program funded 
                      under part A of title IV of the Social Security 
                      Act (42 U.S.C. 601 et seq.) at any time during the 
                      3-year period before the date on which the 
                      applicant applies for a grant under section 5307 
                      or 5311.
            ``(10) Local governmental authority.--The term `local 
        governmental authority' includes--
                    ``(A) a political subdivision of a State;
                    ``(B) an authority of at least 1 State or political 
                subdivision of a State;

[[Page 126 STAT. 627]]

                    ``(C) an Indian tribe; and
                    ``(D) a public corporation, board, or commission 
                established under the laws of a State.
            ``(11) Low-income individual.--The term `low-income 
        individual' means an individual whose family income is at or 
        below 150 percent of the poverty line, as that term is defined 
        in section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)), including any revision required by that 
        section, for a family of the size involved.
            ``(12) Net project cost.--The term `net project cost' means 
        the part of a project that reasonably cannot be financed from 
        revenues.
            ``(13) New bus model.--The term `new bus model' means a bus 
        model (including a model using alternative fuel)--
                    ``(A) that has not been used in public 
                transportation in the United States before the date of 
                production of the model; or
                    ``(B) used in public transportation in the United 
                States, but being produced with a major change in 
                configuration or components.
            ``(14) Public transportation.--The term `public 
        transportation'--
                    ``(A) means regular, continuing shared-ride surface 
                transportation services that are open to the general 
                public or open to a segment of the general public 
                defined by age, disability, or low income; and
                    ``(B) does not include--
                          ``(i) intercity passenger rail transportation 
                      provided by the entity described in chapter 243 
                      (or a successor to such entity);
                          ``(ii) intercity bus service;
                          ``(iii) charter bus service;
                          ``(iv) school bus service;
                          ``(v) sightseeing service;
                          ``(vi) courtesy shuttle service for patrons of 
                      one or more specific establishments; or
                          ``(vii) intra-terminal or intra-facility 
                      shuttle services.
            ``(15) Regulation.--The term `regulation' means any part of 
        a statement of general or particular applicability of the 
        Secretary designed to carry out, interpret, or prescribe law or 
        policy in carrying out this chapter.
            ``(16) Rural area.--The term `rural area' means an area 
        encompassing a population of less than 50,000 people that has 
        not been designated in the most recent decennial census as an 
        `urbanized area' by the Secretary of Commerce.
            ``(17) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(18) Senior.--The term `senior' means an individual who is 
        65 years of age or older.
            ``(19) State.--The term `State' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, Guam, American Samoa, and the Virgin Islands.
            ``(20) State of good repair.--The term `state of good 
        repair' has the meaning given that term by the Secretary, by 
        rule, under section 5326(b).

[[Page 126 STAT. 628]]

            ``(21) Transit.--The term `transit' means public 
        transportation.
            ``(22) Urban area.--The term `urban area' means an area that 
        includes a municipality or other built-up place that the 
        Secretary, after considering local patterns and trends of urban 
        growth, decides is appropriate for a local public transportation 
        system to serve individuals in the locality.
            ``(23) Urbanized area.--The term `urbanized area' means an 
        area encompassing a population of not less than 50,000 people 
        that has been defined and designated in the most recent 
        decennial census as an `urbanized area' by the Secretary of 
        Commerce.''.
SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING.

    (a) Amendment.--Section 5303 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5303. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest--
            ``(1) to encourage and promote the safe and efficient 
        management, operation, and development of surface transportation 
        systems that will serve the mobility needs of people and freight 
        and foster economic growth and development within and between 
        States and urbanized areas, while minimizing transportation-
        related fuel consumption and air pollution through metropolitan 
        and statewide transportation planning processes identified in 
        this chapter; and
            ``(2) to encourage the continued improvement and evolution 
        of the metropolitan and statewide transportation planning 
        processes by metropolitan planning organizations, State 
        departments of transportation, and public transit operators as 
        guided by the planning factors identified in subsection (h) and 
        section 5304(d).

    ``(b) Definitions.--In this section and section 5304, the following 
definitions apply:
            ``(1) Metropolitan planning area.--The term `metropolitan 
        planning area' means the geographic area determined by agreement 
        between the metropolitan planning organization for the area and 
        the Governor under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy board of 
        an organization established as a result of the designation 
        process under subsection (d).
            ``(3) Nonmetropolitan area.--The term `nonmetropolitan area' 
        means a geographic area outside designated metropolitan planning 
        areas.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and appointed 
        officials of general purpose local government in a 
        nonmetropolitan area with responsibility for transportation.
            ``(5) Regional transportation planning organization.--The 
        term `regional transportation planning organization' means a 
        policy board of an organization established as the result of a 
        designation under section 5304(l).
            ``(6) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan planning 
        organization under subsection (j).

[[Page 126 STAT. 629]]

            ``(7) Urbanized area.--The term `urbanized area' means a 
        geographic area with a population of 50,000 or more, as 
        determined by the Bureau of the Census.

    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), metropolitan 
        planning organizations designated under subsection (d), in 
        cooperation with the State and public transportation operators, 
        shall develop long-range transportation plans and transportation 
        improvement programs through a performance-driven, outcome-based 
        approach to planning for metropolitan areas of the State.
            ``(2) Contents.--The plans and TIPs for each metropolitan 
        area shall provide for the development and integrated management 
        and operation of transportation systems and facilities 
        (including accessible pedestrian walkways and bicycle 
        transportation facilities) that will function as an intermodal 
        transportation system for the metropolitan planning area and as 
        an integral part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for developing 
        the plans and TIPs shall provide for consideration of all modes 
        of transportation and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the complexity 
        of the transportation problems to be addressed.

    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a metropolitan planning 
        organization shall be designated for each urbanized area with a 
        population of more than 50,000 individuals--
                    ``(A) by agreement between the Governor and units of 
                general purpose local government that together represent 
                at least 75 percent of the affected population 
                (including the largest incorporated city (based on 
                population) as determined by the Bureau of the Census); 
                or
                    ``(B) in accordance with procedures established by 
                applicable State or local law.
            ``(2) Structure.-- <<NOTE: Deadline.>> Not later than 2 
        years after the date of enactment of the Federal Public 
        Transportation Act of 2012, each metropolitan planning 
        organization that serves an area designated as a transportation 
        management area shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that administer 
                or operate major modes of transportation in the 
                metropolitan area, including representation by providers 
                of public transportation; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed to interfere with the authority, 
        under any State law in effect on December 18, 1991, of a public 
        agency with multimodal transportation responsibilities--
                    ``(A) to develop the plans and TIPs for adoption by 
                a metropolitan planning organization; and

[[Page 126 STAT. 630]]

                    ``(B) to develop long-range capital plans, 
                coordinate transit services and projects, and carry out 
                other activities pursuant to State law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this subsection or any 
        other provision of law shall remain in effect until the 
        metropolitan planning organization is redesignated under 
        paragraph (5).
            ``(5) Redesignation procedures.--
                    ``(A) In general.--A metropolitan planning 
                organization may be redesignated by agreement between 
                the Governor and units of general purpose local 
                government that together represent at least 75 percent 
                of the existing planning area population (including the 
                largest incorporated city (based on population) as 
                determined by the Bureau of the Census) as appropriate 
                to carry out this section.
                    ``(B) Restructuring.--A metropolitan planning 
                organization may be restructured to meet the 
                requirements of paragraph (2) without undertaking a 
                redesignation.
            ``(6) Designation of more than 1 metropolitan planning 
        organization.--More than 1 metropolitan planning organization 
        may be designated within an existing metropolitan planning area 
        only if the Governor and the existing metropolitan planning 
        organization determine that the size and complexity of the 
        existing metropolitan planning area make designation of more 
        than 1 metropolitan planning organization for the area 
        appropriate.

    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this section, the 
        boundaries of a metropolitan planning area shall be determined 
        by agreement between the metropolitan planning organization and 
        the Governor.
            ``(2) <<NOTE: Time period.>> Included area.--Each 
        metropolitan planning area--
                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected to 
                become urbanized within a 20-year forecast period for 
                the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of the 
                Census.
            ``(3) Identification of new urbanized areas within existing 
        planning area boundaries.--The designation by the Bureau of the 
        Census of new urbanized areas within an existing metropolitan 
        planning area shall not require the redesignation of the 
        existing metropolitan planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                except as provided in subparagraph (B), in the case of 
                an urbanized area designated as a nonattainment area for 
                ozone or carbon monoxide under the Clean Air Act (42 
                U.S.C. 7401 et seq.) as of the date of enactment of the 
                SAFETEA-LU, the boundaries of the metropolitan planning 
                area in existence as of such date of enactment shall be 
                retained.
                    ``(B) Exception.--The boundaries described in 
                subparagraph (A) may be adjusted by agreement of the

[[Page 126 STAT. 631]]

                Governor and affected metropolitan planning 
                organizations in the manner described in subsection 
                (d)(5).
            ``(5) New metropolitan planning areas in nonattainment.--In 
        the case of an urbanized area designated after the date of 
        enactment of the SAFETEA-LU, as a nonattainment area for ozone 
        or carbon monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner described 
                in subsection (d)(1);
                    ``(B) shall encompass the areas described in 
                paragraph (2)(A);
                    ``(C) may encompass the areas described in paragraph 
                (2)(B); and
                    ``(D) may address any nonattainment area identified 
                under the Clean Air Act (42 U.S.C. 7401 et seq.) for 
                ozone or carbon monoxide.

    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage each 
        Governor with responsibility for a portion of a multistate 
        metropolitan area and the appropriate metropolitan planning 
        organizations to provide coordinated transportation planning for 
        the entire metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress is 
        granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, not in 
                conflict with any law of the United States, for 
                cooperative efforts and mutual assistance in support of 
                activities authorized under this section as the 
                activities pertain to interstate areas and localities 
                within the States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine desirable for 
                making the agreements and compacts effective.
            ``(3) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 metropolitan 
        planning organization has authority within a metropolitan area 
        or an area which is designated as a nonattainment area for ozone 
        or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et 
        seq.), each metropolitan planning organization shall consult 
        with the other metropolitan planning organizations designated 
        for such area and the State in the coordination of plans and 
        TIPs required by this section.
            ``(2) Transportation improvements located in multiple 
        mpos.--If a transportation improvement, funded under this 
        chapter or title 23, is located within the boundaries of more 
        than 1 metropolitan planning area, the metropolitan planning 
        organizations shall coordinate plans and TIPs regarding the 
        transportation improvement.
            ``(3) Relationship with other planning officials.--
                    ``(A) In general.--The Secretary shall encourage 
                each metropolitan planning organization to consult with 
                officials responsible for other types of planning 
                activities that are affected by transportation in the 
                area (including State and

[[Page 126 STAT. 632]]

                local planned growth, economic development, 
                environmental protection, airport operations, and 
                freight movements) or to coordinate its planning 
                process, to the maximum extent practicable, with such 
                planning activities.
                    ``(B) Requirements.--Under the metropolitan planning 
                process, transportation plans and TIPs shall be 
                developed with due consideration of other related 
                planning activities within the metropolitan area, and 
                the process shall provide for the design and delivery of 
                transportation services within the metropolitan area 
                that are provided by--
                          ``(i) recipients of assistance under this 
                      chapter;
                          ``(ii) governmental agencies and nonprofit 
                      organizations (including representatives of the 
                      agencies and organizations) that receive Federal 
                      assistance from a source other than the Department 
                      of Transportation to provide nonemergency 
                      transportation services; and
                          ``(iii) recipients of assistance under section 
                      204 of title 23.

    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning process for a 
        metropolitan planning area under this section shall provide for 
        consideration of projects and strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and for freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes, for 
                people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The metropolitan transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of title 23 and the general purposes 
                described in section 5301.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each metropolitan 
                                planning organization shall establish 
                                performance targets that address the 
                                performance measures described

[[Page 126 STAT. 633]]

                                in section 150(c) of title 23, where 
                                applicable, to use in tracking progress 
                                towards attainment of critical outcomes 
                                for the region of the metropolitan 
                                planning organization.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a metropolitan 
                                planning organization shall be 
                                coordinated with the relevant State to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--Selection of performance targets by a 
                      metropolitan planning organization shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d).
                    ``(C) Timing.--Each metropolitan planning 
                organization shall establish the performance targets 
                under subparagraph (B) not later than 180 days after the 
                date on which the relevant State or provider of public 
                transportation establishes the performance targets.
                    ``(D) Integration of other performance-based 
                plans.--A metropolitan planning organization shall 
                integrate in the metropolitan transportation planning 
                process, directly or by reference, the goals, 
                objectives, performance measures, and targets described 
                in other State transportation plans and transportation 
                processes, as well as any plans developed by recipients 
                of assistance under this chapter, required as part of a 
                performance-based program.
            ``(3) Failure to consider factors.--The failure to consider 
        any factor specified in paragraphs (1) and (2) shall not be 
        reviewable by any court under this chapter, title 23, subchapter 
        II of chapter 5 of title 5, or chapter 7 of title 5 in any 
        matter affecting a transportation plan, a TIP, a project or 
        strategy, or the certification of a planning process.

    ``(i) Development of Transportation Plan.--
            ``(1) Requirements.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall prepare and update a transportation 
                plan for its metropolitan planning area in accordance 
                with the requirements of this subsection.
                    ``(B) Frequency.--
                          ``(i) In general.--The metropolitan planning 
                      organization shall prepare and update such plan 
                      every 4 years (or more frequently, if the 
                      metropolitan planning organization elects to 
                      update more frequently) in the case of each of the 
                      following:
                                    ``(I) Any area designated as 
                                nonattainment, as defined in section 
                                107(d) of the Clean Air Act (42 U.S.C. 
                                7407(d)).
                                    ``(II) Any area that was 
                                nonattainment and subsequently 
                                designated to attainment in accordance 
                                with section 107(d)(3) of that Act (42 
                                U.S.C. 7407(d)(3)) and that is subject 
                                to a maintenance plan under section 175A 
                                of that Act (42 U.S.C. 7505a).

[[Page 126 STAT. 634]]

                          ``(ii) Other areas.--In the case of any other 
                      area required to have a transportation plan in 
                      accordance with the requirements of this 
                      subsection, the metropolitan planning organization 
                      shall prepare and update such plan every 5 years 
                      unless the metropolitan planning organization 
                      elects to update more frequently.
            ``(2) Transportation plan.--A transportation plan under this 
        section shall be in a form that the Secretary determines to be 
        appropriate and shall contain, at a minimum, the following:
                    ``(A) Identification of transportation facilities.--
                          ``(i) In general.--An identification of 
                      transportation facilities (including major 
                      roadways, transit, multimodal and intermodal 
                      facilities, nonmotorized transportation 
                      facilities, and intermodal connectors) that should 
                      function as an integrated metropolitan 
                      transportation system, giving emphasis to those 
                      facilities that serve important national and 
                      regional transportation functions.
                          ``(ii) <<NOTE: Time period.>> Factors.--In 
                      formulating the transportation plan, the 
                      metropolitan planning organization shall consider 
                      factors described in subsection (h) as the factors 
                      relate to a 20-year forecast period.
                    ``(B) Performance measures and targets.--A 
                description of the performance measures and performance 
                targets used in assessing the performance of the 
                transportation system in accordance with subsection 
                (h)(2).
                    ``(C) System performance report.--A system 
                performance report and subsequent updates evaluating the 
                condition and performance of the transportation system 
                with respect to the performance targets described in 
                subsection (h)(2), including--
                          ``(i) progress achieved by the metropolitan 
                      planning organization in meeting the performance 
                      targets in comparison with system performance 
                      recorded in previous reports; and
                          ``(ii) for metropolitan planning organizations 
                      that voluntarily elect to develop multiple 
                      scenarios, an analysis of how the preferred 
                      scenario has improved the conditions and 
                      performance of the transportation system and how 
                      changes in local policies and investments have 
                      impacted the costs necessary to achieve the 
                      identified performance targets.
                    ``(D) Mitigation activities.--
                          ``(i) In general.--A long-range transportation 
                      plan shall include a discussion of types of 
                      potential environmental mitigation activities and 
                      potential areas to carry out these activities, 
                      including activities that may have the greatest 
                      potential to restore and maintain the 
                      environmental functions affected by the plan.
                          ``(ii) Consultation.--The discussion shall be 
                      developed in consultation with Federal, State, and 
                      tribal wildlife, land management, and regulatory 
                      agencies.
                    ``(E) Financial plan.--
                          ``(i) In general.--A financial plan that--

[[Page 126 STAT. 635]]

                                    ``(I) demonstrates how the adopted 
                                transportation plan can be implemented;
                                    ``(II) indicates resources from 
                                public and private sources that are 
                                reasonably expected to be made available 
                                to carry out the plan; and
                                    ``(III) recommends any additional 
                                financing strategies for needed projects 
                                and programs.
                          ``(ii) Inclusions.--The financial plan may 
                      include, for illustrative purposes, additional 
                      projects that would be included in the adopted 
                      transportation plan if reasonable additional 
                      resources beyond those identified in the financial 
                      plan were available.
                          ``(iii) Cooperative development.--For the 
                      purpose of developing the transportation plan, the 
                      metropolitan planning organization, transit 
                      operator, and State shall cooperatively develop 
                      estimates of funds that will be available to 
                      support plan implementation.
                    ``(F) Operational and management strategies.--
                Operational and management strategies to improve the 
                performance of existing transportation facilities to 
                relieve vehicular congestion and maximize the safety and 
                mobility of people and goods.
                    ``(G) Capital investment and other strategies.--
                Capital investment and other strategies to preserve the 
                existing and projected future metropolitan 
                transportation infrastructure and provide for multimodal 
                capacity increases based on regional priorities and 
                needs.
                    ``(H) Transportation and transit enhancement 
                activities.--Proposed transportation and transit 
                enhancement activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas that are in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), the 
        metropolitan planning organization shall coordinate the 
        development of a transportation plan with the process for 
        development of the transportation control measures of the State 
        implementation plan required by that Act.
            ``(4) Optional scenario development.--
                    ``(A) In general.--A metropolitan planning 
                organization may, while fitting the needs and complexity 
                of its community, voluntarily elect to develop multiple 
                scenarios for consideration as part of the development 
                of the metropolitan transportation plan, in accordance 
                with subparagraph (B).
                    ``(B) Recommended components.--A metropolitan 
                planning organization that chooses to develop multiple 
                scenarios under subparagraph (A) shall be encouraged to 
                consider--
                          ``(i) potential regional investment strategies 
                      for the planning horizon;
                          ``(ii) assumed distribution of population and 
                      employment;
                          ``(iii) a scenario that, to the maximum extent 
                      practicable, maintains baseline conditions for the 
                      performance measures identified in subsection 
                      (h)(2);

[[Page 126 STAT. 636]]

                          ``(iv) a scenario that improves the baseline 
                      conditions for as many of the performance measures 
                      identified in subsection (h)(2) as possible;
                          ``(v) revenue constrained scenarios based on 
                      the total revenues expected to be available over 
                      the forecast period of the plan; and
                          ``(vi) estimated costs and potential revenues 
                      available to support each scenario.
                    ``(C) Metrics.--In addition to the performance 
                measures identified in section 150(c) of title 23, 
                metropolitan planning organizations may evaluate 
                scenarios developed under this paragraph using locally-
                developed measures.
            ``(5) Consultation.--
                    ``(A) In general.--In each metropolitan area, the 
                metropolitan planning organization shall consult, as 
                appropriate, with State and local agencies responsible 
                for land use management, natural resources, 
                environmental protection, conservation, and historic 
                preservation concerning the development of a long-range 
                transportation plan.
                    ``(B) Issues.--The consultation shall involve, as 
                appropriate--
                          ``(i) comparison of transportation plans with 
                      State conservation plans or maps, if available; or
                          ``(ii) comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(6) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall provide citizens, affected public 
                agencies, representatives of public transportation 
                employees, freight shippers, providers of freight 
                transportation services, private providers of 
                transportation, representatives of users of public 
                transportation, representatives of users of pedestrian 
                walkways and bicycle transportation facilities, 
                representatives of the disabled, and other interested 
                parties with a reasonable opportunity to comment on the 
                transportation plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                          ``(i) shall be developed in consultation with 
                      all interested parties; and
                          ``(ii) shall provide that all interested 
                      parties have reasonable opportunities to comment 
                      on the contents of the transportation plan.
                    ``(C) <<NOTE: Public information.>> Methods.--In 
                carrying out subparagraph (A), the metropolitan planning 
                organization shall, to the maximum extent practicable--
                          ``(i) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(ii) employ visualization techniques to 
                      describe plans; and
                          ``(iii) make public information available in 
                      electronically accessible format and means, such 
                      as the World Wide Web, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(7) Publication.--A transportation plan involving Federal 
        participation shall be published or otherwise made readily

[[Page 126 STAT. 637]]

        available by the metropolitan planning organization for public 
        review, including (to the maximum extent practicable) in 
        electronically accessible formats and means, such as the World 
        Wide Web, approved by the metropolitan planning organization and 
        submitted for information purposes to the Governor at such times 
        and in such manner as the Secretary shall establish.
            ``(8) Selection of projects from illustrative list.--
        Notwithstanding paragraph (2)(C), a State or metropolitan 
        planning organization shall not be required to select any 
        project from the illustrative list of additional projects 
        included in the financial plan under paragraph (2)(C).

    ``(j) Metropolitan TIP.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the State and 
                any affected public transportation operator, the 
                metropolitan planning organization designated for a 
                metropolitan area shall develop a TIP for the 
                metropolitan planning area that--
                          ``(i) contains projects consistent with the 
                      current metropolitan transportation plan;
                          ``(ii) reflects the investment priorities 
                      established in the current metropolitan 
                      transportation plan; and
                          ``(iii) once implemented, is designed to make 
                      progress toward achieving the performance targets 
                      established under subsection (h)(2).
                    ``(B) Opportunity for comment.--In developing the 
                TIP, the metropolitan planning organization, in 
                cooperation with the State and any affected public 
                transportation operator, shall provide an opportunity 
                for participation by interested parties in the 
                development of the program, in accordance with 
                subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose of 
                developing the TIP, the metropolitan planning 
                organization, public transportation agency, and State 
                shall cooperatively develop estimates of funds that are 
                reasonably expected to be available to support program 
                implementation.
                    ``(D) Updating and approval.--The TIP shall be--
                          ``(i) updated at least once every 4 years; and
                          ``(ii) approved by the metropolitan planning 
                      organization and the Governor.
            ``(2) Contents.--
                    ``(A) <<NOTE: Time period.>> Priority list.--The TIP 
                shall include a priority list of proposed Federally 
                supported projects and strategies to be carried out 
                within each 4-year period after the initial adoption of 
                the TIP.
                    ``(B) Financial plan.--The TIP shall include a 
                financial plan that--
                          ``(i) demonstrates how the TIP can be 
                      implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      available to carry out the program;
                          ``(iii) identifies innovative financing 
                      techniques to finance projects, programs, and 
                      strategies; and
                          ``(iv) may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      approved TIP if reasonable additional resources 
                      beyond those identified in the financial plan were 
                      available.

[[Page 126 STAT. 638]]

                    ``(C) Descriptions.--Each project in the TIP shall 
                include sufficient descriptive material (such as type of 
                work, termini, length, and other similar factors) to 
                identify the project or phase of the project.
                    ``(D) Performance target achievement.--The 
                transportation improvement program shall include, to the 
                maximum extent practicable, a description of the 
                anticipated effect of the transportation improvement 
                program toward achieving the performance targets 
                established in the metropolitan transportation plan, 
                linking investment priorities to those performance 
                targets.
            ``(3) Included projects.--
                    ``(A) Projects under this chapter and title 23.--A 
                TIP developed under this subsection for a metropolitan 
                area shall include the projects within the area that are 
                proposed for funding under this chapter and chapter 1 of 
                title 23.
                    ``(B) Projects under chapter 2 of title 23.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 of title 23 shall be 
                      identified individually in the transportation 
                      improvement program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 of title 23 that are not 
                      determined to be regionally significant shall be 
                      grouped in 1 line item or identified individually 
                      in the transportation improvement program.
                    ``(C) Consistency with long-range transportation 
                plan.--Each project shall be consistent with the long-
                range transportation plan developed under subsection (i) 
                for the area.
                    ``(D) Requirement of anticipated full funding.--The 
                program shall include a project, or an identified phase 
                of a project, only if full funding can reasonably be 
                anticipated to be available for the project or the 
                identified phase within the time period contemplated for 
                completion of the project or the identified phase.
            ``(4) Notice and comment.--Before approving a TIP, a 
        metropolitan planning organization, in cooperation with the 
        State and any affected public transportation operator, shall 
        provide an opportunity for participation by interested parties 
        in the development of the program, in accordance with subsection 
        (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise provided in 
                subsection (k)(4) and in addition to the TIP development 
                required under paragraph (1), the selection of Federally 
                funded projects in metropolitan areas shall be carried 
                out, from the approved TIP--
                          ``(i) by--
                                    ``(I) in the case of projects under 
                                title 23, the State; and
                                    ``(II) in the case of projects under 
                                this chapter, the designated recipients 
                                of public transportation funding; and
                          ``(ii) in cooperation with the metropolitan 
                      planning organization.

[[Page 126 STAT. 639]]

                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, action by 
                the Secretary shall not be required to advance a project 
                included in the approved TIP in place of another project 
                in the program.
            ``(6) Selection of projects from illustrative list.--
                    ``(A) No required selection.--Notwithstanding 
                paragraph (2)(B)(iv), a State or metropolitan planning 
                organization shall not be required to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--Action by 
                the Secretary shall be required for a State or 
                metropolitan planning organization to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv) for inclusion in an approved TIP.
            ``(7) <<NOTE: Public information.>> Publication.--
                    ``(A) Publication of tips.--A TIP involving Federal 
                participation shall be published or otherwise made 
                readily available by the metropolitan planning 
                organization for public review.
                    ``(B) Publication of annual listings of projects.--
                          ``(i) In general.--An annual listing of 
                      projects, including investments in pedestrian 
                      walkways and bicycle transportation facilities, 
                      for which Federal funds have been obligated in the 
                      preceding year shall be published or otherwise 
                      made available by the cooperative effort of the 
                      State, transit operator, and metropolitan planning 
                      organization for public review.
                          ``(ii) Requirement.--The listing shall be 
                      consistent with the categories identified in the 
                      TIP.

    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--
                    ``(A) Required identification.--The Secretary shall 
                identify as a transportation management area each 
                urbanized area (as defined by the Bureau of the Census) 
                with a population of over 200,000 individuals.
                    ``(B) Designations on request.--The Secretary shall 
                designate any additional area as a transportation 
                management area on the request of the Governor and the 
                metropolitan planning organization designated for the 
                area.
            ``(2) Transportation plans.--In a transportation management 
        area, transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried out by the 
        metropolitan planning organization in cooperation with the State 
        and public transportation operators.
            ``(3) Congestion management process.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section shall 
                address congestion management through a process that 
                provides for effective management and operation, based 
                on a cooperatively developed and implemented 
                metropolitan-wide strategy, of new and existing 
                transportation facilities eligible for funding under 
                this chapter and title 23 through the use of travel 
                demand reduction and operational management strategies.

[[Page 126 STAT. 640]]

                    ``(B) <<NOTE: Time period.>> Schedule.--The 
                Secretary shall establish an appropriate phase-in 
                schedule for compliance with the requirements of this 
                section but no sooner than 1 year after the 
                identification of a transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All Federally funded projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                under title 23 (excluding projects carried out on the 
                National Highway System) or under this chapter shall be 
                selected for implementation from the approved TIP by the 
                metropolitan planning organization designated for the 
                area in consultation with the State and any affected 
                public transportation operator.
                    ``(B) National highway system projects.--Projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                on the National Highway System shall be selected for 
                implementation from the approved TIP by the State in 
                cooperation with the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) ensure that the metropolitan planning 
                      process of a metropolitan planning organization 
                      serving a transportation management area is being 
                      carried out in accordance with applicable 
                      provisions of Federal law; and
                          ``(ii) <<NOTE: Time period.>> subject to 
                      subparagraph (B), certify, not less often than 
                      once every 4 years, that the requirements of this 
                      paragraph are met with respect to the metropolitan 
                      planning process.
                    ``(B) Requirements for certification.--The Secretary 
                may make the certification under subparagraph (A) if--
                          ``(i) the transportation planning process 
                      complies with the requirements of this section and 
                      other applicable requirements of Federal law; and
                          ``(ii) there is a TIP for the metropolitan 
                      planning area that has been approved by the 
                      metropolitan planning organization and the 
                      Governor.
                    ``(C) Effect of failure to certify.--
                          ``(i) Withholding of project funds.--If a 
                      metropolitan planning process of a metropolitan 
                      planning organization serving a transportation 
                      management area is not certified, the Secretary 
                      may withhold up to 20 percent of the funds 
                      attributable to the metropolitan planning area of 
                      the metropolitan planning organization for 
                      projects funded under this chapter and title 23.
                          ``(ii) Restoration of withheld funds.--The 
                      withheld funds shall be restored to the 
                      metropolitan planning area at such time as the 
                      metropolitan planning process is certified by the 
                      Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this paragraph, the 
                Secretary

[[Page 126 STAT. 641]]

                shall provide for public involvement appropriate to the 
                metropolitan area under review.

    ``(l) Report on Performance-based Planning Processes.--
            ``(1) In general.--The Secretary shall submit to Congress a 
        report on the effectiveness of the performance-based planning 
        processes of metropolitan planning organizations under this 
        section, taking into consideration the requirements of this 
        subsection
            ``(2) Report.--Not later than 5 years after the date of 
        enactment of the Federal Public Transportation Act of 2012, the 
        Secretary shall submit to Congress a report evaluating--
                    ``(A) the overall effectiveness of performance-based 
                planning as a tool for guiding transportation 
                investments;
                    ``(B) the effectiveness of the performance-based 
                planning process of each metropolitan planning 
                organization under this section;
                    ``(C) the extent to which metropolitan planning 
                organizations have achieved, or are currently making 
                substantial progress toward achieving, the performance 
                targets specified under this section and whether 
                metropolitan planning organizations are developing 
                meaningful performance targets; and
                    ``(D) the technical capacity of metropolitan 
                planning organizations that operate within a 
                metropolitan planning area of less than 200,000 and 
                their ability to carry out the requirements of this 
                section.
            ``(3) Publication.--The report under paragraph (2) shall be 
        published or otherwise made available in electronically 
        accessible formats and means, including on the Internet.

    ``(m) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the case of 
        a metropolitan area not designated as a transportation 
        management area under this section, the Secretary may provide 
        for the development of an abbreviated transportation plan and 
        TIP for the metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of this 
        section, taking into account the complexity of transportation 
        problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not permit 
        abbreviated plans or TIPs for a metropolitan area that is in 
        nonattainment for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).

    ``(n) Additional Requirements for Certain Nonattainment Areas.--
            ``(1) In general.--Notwithstanding any other provisions of 
        this chapter or title 23, for transportation management areas 
        classified as nonattainment for ozone or carbon monoxide 
        pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 
        funds may not be advanced in such area for any highway project 
        that will result in a significant increase in the carrying 
        capacity for single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning area 
        boundaries determined under subsection (e).

    ``(o) Limitation on Statutory Construction.--Nothing in this section 
shall be construed to confer on a metropolitan planning

[[Page 126 STAT. 642]]

organization the authority to impose legal requirements on any 
transportation facility, provider, or project not eligible under this 
chapter or title 23.
    ``(p) Funding.--Funds set aside under section 104(f) of title 23 or 
section 5305(g) shall be available to carry out this section.
    ``(q) Continuation of Current Review Practice.--Since plans and TIPs 
described in this section are subject to a reasonable opportunity for 
public comment, since individual projects included in plans and TIPs are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning plans and TIPs described in this section have not been 
reviewed under that Act as of January 1, 1997, any decision by the 
Secretary concerning a plan or TIP described in this section shall not 
be considered to be a Federal action subject to review under that 
Act.''.
    (b) <<NOTE: 49 USC 5303 note.>> Pilot Program for Transit-oriented 
Development Planning.--
            (1) Definitions.--In this subsection the following 
        definitions shall apply:
                    (A) Eligible project.--The term ``eligible project'' 
                means a new fixed guideway capital project or a core 
                capacity improvement project, as those terms are defined 
                in section 5309 of title 49, United States Code, as 
                amended by this division.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Transportation.
            (2) General authority.--The Secretary may make grants under 
        this subsection to a State or local governmental authority to 
        assist in financing comprehensive planning associated with an 
        eligible project that seeks to--
                    (A) enhance economic development, ridership, and 
                other goals established during the project development 
                and engineering processes;
                    (B) facilitate multimodal connectivity and 
                accessibility;
                    (C) increase access to transit hubs for pedestrian 
                and bicycle traffic;
                    (D) enable mixed-use development;
                    (E) identify infrastructure needs associated with 
                the eligible project; and
                    (F) include private sector participation.
            (3) Eligibility.--A State or local governmental authority 
        that desires to participate in the program under this subsection 
        shall submit to the Secretary an application that contains, at a 
        minimum--
                    (A) identification of an eligible project;
                    (B) a schedule and process for the development of a 
                comprehensive plan;
                    (C) a description of how the eligible project and 
                the proposed comprehensive plan advance the metropolitan 
                transportation plan of the metropolitan planning 
                organization;
                    (D) proposed performance criteria for the 
                development and implementation of the comprehensive 
                plan; and
                    (E) identification of--
                          (i) partners;
                          (ii) availability of and authority for 
                      funding; and

[[Page 126 STAT. 643]]

                          (iii) potential State, local or other 
                      impediments to the implementation of the 
                      comprehensive plan.
SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

    Section 5304 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5304. Statewide and nonmetropolitan transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--Subject to section 
        5303, to accomplish the objectives stated in section 5303(a), 
        each State shall develop a statewide transportation plan and a 
        statewide transportation improvement program for all areas of 
        the State.
            ``(2) Contents.--The statewide transportation plan and the 
        transportation improvement program developed for each State 
        shall provide for the development and integrated management and 
        operation of transportation systems and facilities (including 
        accessible pedestrian walkways and bicycle transportation 
        facilities) that will function as an intermodal transportation 
        system for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for developing 
        the statewide plan and the transportation improvement program 
        shall provide for consideration of all modes of transportation 
        and the policies stated in section 5303(a) and shall be 
        continuing, cooperative, and comprehensive to the degree 
        appropriate, based on the complexity of the transportation 
        problems to be addressed.

    ``(b) Coordination With Metropolitan Planning; State Implementation 
Plan.--A State shall--
            ``(1) coordinate planning carried out under this section 
        with the transportation planning activities carried out under 
        section 5303 for metropolitan areas of the State and with 
        statewide trade and economic development planning activities and 
        related multistate planning efforts; and
            ``(2) develop the transportation portion of the State 
        implementation plan as required by the Clean Air Act (42 U.S.C. 
        7401 et seq.).

    ``(c) Interstate Agreements.--
            ``(1) In general.--Two or more States may enter into 
        agreements or compacts, not in conflict with any law of the 
        United States, for cooperative efforts and mutual assistance in 
        support of activities authorized under this section related to 
        interstate areas and localities in the States and establishing 
        authorities the States consider desirable for making the 
        agreements and compacts effective.
            ``(2) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a statewide 
        transportation planning process that provides for consideration 
        and implementation of projects, strategies, and services that 
        will--

[[Page 126 STAT. 644]]

                    ``(A) support the economic vitality of the United 
                States, the States, nonmetropolitan areas, and 
                metropolitan areas, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes 
                throughout the State, for people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The statewide transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of title 23 and the general purposes 
                described in section 5301.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each State shall 
                                establish performance targets that 
                                address the performance measures 
                                described in section 150(c) of title 23, 
                                where applicable, to use in tracking 
                                progress towards attainment of critical 
                                outcomes for the State.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a State shall be 
                                coordinated with the relevant 
                                metropolitan planning organizations to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--In urbanized areas with a population of 
                      fewer than 200,000 individuals, as calculated 
                      according to the most recent decennial census, and 
                      not represented by a metropolitan planning 
                      organization, selection of performance targets by 
                      a State shall be coordinated, to the maximum 
                      extent practicable, with providers of public 
                      transportation to ensure consistency with sections 
                      5326(c) and 5329(d).
                    ``(C) Integration of other performance-based 
                plans.--A State shall integrate into the statewide 
                transportation planning process, directly or by 
                reference, the goals, objectives, performance measures, 
                and targets described in this paragraph, in other State 
                transportation plans and

[[Page 126 STAT. 645]]

                transportation processes, as well as any plans developed 
                pursuant to title 23 by providers of public 
                transportation in urbanized areas with a population of 
                fewer than 200,000 individuals, as calculated according 
                to the most recent decennial census, and not represented 
                by a metropolitan planning organization, required as 
                part of a performance-based program.
                    ``(D) Use of performance measures and targets.--The 
                performance measures and targets established under this 
                paragraph shall be considered by a State when developing 
                policies, programs, and investment priorities reflected 
                in the statewide transportation plan and statewide 
                transportation improvement program.
            ``(3) Failure to consider factors.--The failure to take into 
        consideration the factors specified in paragraphs (1) and (2) 
        shall not be subject to review by any court under this chapter, 
        title 23, subchapter II of chapter 5 of title 5, or chapter 7 of 
        title 5 in any matter affecting a statewide transportation plan, 
        a statewide transportation improvement program, a project or 
        strategy, or the certification of a planning process.

    ``(e) Additional Requirements.--``In carrying out planning under 
this section, each State shall, at a minimum--
            ``(1) with respect to nonmetropolitan areas, cooperate with 
        affected local officials with responsibility for transportation 
        or, if applicable, through regional transportation planning 
        organizations described in subsection (l);
            ``(2) consider the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction over 
        land within the boundaries of the State; and
            ``(3) consider coordination of transportation plans, the 
        transportation improvement program, and planning activities with 
        related planning activities being carried out outside of 
        metropolitan planning areas and between States.

    ``(f) Long-range Statewide Transportation Plan.--
            ``(1) <<NOTE: Time period.>> Development.--Each State shall 
        develop a long-range statewide transportation plan, with a 
        minimum 20-year forecast period for all areas of the State, that 
        provides for the development and implementation of the 
        intermodal transportation system of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation with the 
                metropolitan planning organization designated for the 
                metropolitan area under section 5303.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to 
                      nonmetropolitan areas, the statewide 
                      transportation plan shall be developed in 
                      cooperation with affected nonmetropolitan 
                      officials with responsibility for transportation 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the consultation process in 
                      each State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal

[[Page 126 STAT. 646]]

                government, the statewide transportation plan shall be 
                developed in consultation with the tribal government and 
                the Secretary of the Interior.
                    ``(D) Consultation, comparison, and consideration.--
                          ``(i) In general.--The long-range 
                      transportation plan shall be developed, as 
                      appropriate, in consultation with State, tribal, 
                      and local agencies responsible for land use 
                      management, natural resources, environmental 
                      protection, conservation, and historic 
                      preservation.
                          ``(ii) Comparison and consideration.--
                      Consultation under clause (i) shall involve 
                      comparison of transportation plans to State and 
                      tribal conservation plans or maps, if available, 
                      and comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the statewide 
                transportation plan, the State shall provide to--
                          ``(i) nonmetropolitan local elected officials, 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l), an opportunity to participate in accordance 
                      with subparagraph (B)(i); and
                          ``(ii) citizens, affected public agencies, 
                      representatives of public transportation 
                      employees, freight shippers, private providers of 
                      transportation, representatives of users of public 
                      transportation, representatives of users of 
                      pedestrian walkways and bicycle transportation 
                      facilities, representatives of the disabled, 
                      providers of freight transportation services, and 
                      other interested parties a reasonable opportunity 
                      to comment on the proposed plan.
                    ``(B) <<NOTE: Public information.>> Methods.--In 
                carrying out subparagraph (A), the State shall, to the 
                maximum extent practicable--
                          ``(i) develop and document a consultative 
                      process to carry out subparagraph (A)(i) that is 
                      separate and discrete from the public involvement 
                      process developed under clause (ii);
                          ``(ii) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(iii) employ visualization techniques to 
                      describe plans; and
                          ``(iv) make public information available in 
                      electronically accessible format and means, such 
                      as the World Wide Web, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range transportation plan 
                shall include a discussion of potential environmental 
                mitigation activities and potential areas to carry out 
                these activities, including activities that may have the 
                greatest potential to restore and maintain the 
                environmental functions affected by the plan.

[[Page 126 STAT. 647]]

                    ``(B) Consultation.--The discussion shall be 
                developed in consultation with Federal, State, and 
                tribal wildlife, land management, and regulatory 
                agencies.
            ``(5) Financial plan.--The statewide transportation plan may 
        include--
                    ``(A) a financial plan that--
                          ``(i) demonstrates how the adopted statewide 
                      transportation plan can be implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      made available to carry out the plan; and
                          ``(iii) recommends any additional financing 
                      strategies for needed projects and programs; and
                    ``(B) for illustrative purposes, additional projects 
                that would be included in the adopted statewide 
                transportation plan if reasonable additional resources 
                beyond those identified in the financial plan were 
                available.
            ``(6) Selection of projects from illustrative list.--A State 
        shall not be required to select any project from the 
        illustrative list of additional projects included in the 
        financial plan described in paragraph (5).
            ``(7) Performance-based approach.--The statewide 
        transportation plan should include--
                    ``(A) a description of the performance measures and 
                performance targets used in assessing the performance of 
                the transportation system in accordance with subsection 
                (d)(2); and
                    ``(B) a system performance report and subsequent 
                updates evaluating the condition and performance of the 
                transportation system with respect to the performance 
                targets described in subsection (d)(2), including 
                progress achieved by the metropolitan planning 
                organization in meeting the performance targets in 
                comparison with system performance recorded in previous 
                reports;
            ``(8) Existing system.--The statewide transportation plan 
        should include capital, operations and management strategies, 
        investments, procedures, and other measures to ensure the 
        preservation and most efficient use of the existing 
        transportation system.
            ``(9) Publication of long-range transportation plans.--Each 
        long-range transportation plan prepared by a State shall be 
        published or otherwise made available, including (to the maximum 
        extent practicable) in electronically accessible formats and 
        means, such as the World Wide Web.

    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--
                    ``(A) In general.--Each State shall develop a 
                statewide transportation improvement program for all 
                areas of the State.
                    ``(B) <<NOTE: Time period.>> Duration and updating 
                of program.--Each program developed under subparagraph 
                (A) shall cover a period of 4 years and shall be updated 
                every 4 years or more frequently if the Governor of the 
                State elects to update more frequently.
            ``(2) Consultation with governments.--

[[Page 126 STAT. 648]]

                    ``(A) Metropolitan areas.--With respect to each 
                metropolitan area in the State, the program shall be 
                developed in cooperation with the metropolitan planning 
                organization designated for the metropolitan area under 
                section 5303.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to each 
                      nonmetropolitan area in the State, the program 
                      shall be developed in cooperation with affected 
                      nonmetropolitan local officials with 
                      responsibility for transportation or, if 
                      applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the specific consultation 
                      process in the State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the program shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the program, the State shall provide citizens, affected public 
        agencies, representatives of public transportation employees, 
        freight shippers, private providers of transportation, providers 
        of freight transportation services, representatives of users of 
        public transportation, representatives of users of pedestrian 
        walkways and bicycle transportation facilities, representatives 
        of the disabled, and other interested parties with a reasonable 
        opportunity to comment on the proposed program.
            ``(4) Performance target achievement.--A statewide 
        transportation improvement program shall include, to the maximum 
        extent practicable, a discussion of the anticipated effect of 
        the statewide transportation improvement program toward 
        achieving the performance targets established in the statewide 
        transportation plan, linking investment priorities to those 
        performance targets.
            ``(5) Included projects.--
                    ``(A) In general.--A transportation improvement 
                program developed under this subsection for a State 
                shall include Federally supported surface transportation 
                expenditures within the boundaries of the State.
                    ``(B) Listing of projects.--
                          ``(i) <<NOTE: Public information.>> In 
                      general.--An annual listing of projects for which 
                      funds have been obligated for the preceding year 
                      in each metropolitan planning area shall be 
                      published or otherwise made available by the 
                      cooperative effort of the State, transit operator, 
                      and the metropolitan planning organization for 
                      public review.
                          ``(ii) Funding categories.--The listing 
                      described in clause (i) shall be consistent with 
                      the funding categories identified in each 
                      metropolitan transportation improvement program.
                    ``(C) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 of title 23 shall be 
                      identified individually in the transportation 
                      improvement program.

[[Page 126 STAT. 649]]

                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 of title 23 that are not 
                      determined to be regionally significant shall be 
                      grouped in 1 line item or identified individually 
                      in the transportation improvement program.
                    ``(D) Consistency with statewide transportation 
                plan.--Each project shall be--
                          ``(i) consistent with the statewide 
                      transportation plan developed under this section 
                      for the State;
                          ``(ii) identical to the project or phase of 
                      the project as described in an approved 
                      metropolitan transportation plan; and
                          ``(iii) in conformance with the applicable 
                      State air quality implementation plan developed 
                      under the Clean Air Act (42 U.S.C. 7401 et seq.), 
                      if the project is carried out in an area 
                      designated as a nonattainment area for ozone, 
                      particulate matter, or carbon monoxide under part 
                      D of title I of that Act (42 U.S.C. 7501 et seq.).
                    ``(E) Requirement of anticipated full funding.--The 
                transportation improvement program shall include a 
                project, or an identified phase of a project, only if 
                full funding can reasonably be anticipated to be 
                available for the project within the time period 
                contemplated for completion of the project.
                    ``(F) Financial plan.--
                          ``(i) In general.--The transportation 
                      improvement program may include a financial plan 
                      that demonstrates how the approved transportation 
                      improvement program can be implemented, indicates 
                      resources from public and private sources that are 
                      reasonably expected to be made available to carry 
                      out the transportation improvement program, and 
                      recommends any additional financing strategies for 
                      needed projects and programs.
                          ``(ii) Additional projects.--The financial 
                      plan may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      adopted transportation plan if reasonable 
                      additional resources beyond those identified in 
                      the financial plan were available.
                    ``(G) Selection of projects from illustrative 
                list.--
                          ``(i) No required selection.--Notwithstanding 
                      subparagraph (F), a State shall not be required to 
                      select any project from the illustrative list of 
                      additional projects included in the financial plan 
                      under subparagraph (F).
                          ``(ii) Required action by the secretary.--
                      Action by the Secretary shall be required for a 
                      State to select any project from the illustrative 
                      list of additional projects included in the 
                      financial plan under subparagraph (F) for 
                      inclusion in an approved transportation 
                      improvement program.
                    ``(H) Priorities.--The transportation improvement 
                program shall reflect the priorities for programming and

[[Page 126 STAT. 650]]

                expenditures of funds, including transportation 
                enhancement activities, required by this chapter and 
                title 23.
            ``(6) Project selection for areas of less than 50,000 
        population.--
                    ``(A) In general.--Projects carried out in areas 
                with populations of less than 50,000 individuals shall 
                be selected, from the approved transportation 
                improvement program (excluding projects carried out on 
                the National Highway System and projects carried out 
                under the bridge program or the Interstate maintenance 
                program under title 23 or under sections 5310 and 5311 
                of this chapter), by the State in cooperation with the 
                affected nonmetropolitan local officials with 
                responsibility for transportation or, if applicable, 
                through regional transportation planning organizations 
                described in subsection (l).
                    ``(B) Other projects.--Projects carried out in areas 
                with populations of less than 50,000 individuals on the 
                National Highway System or under the bridge program or 
                the Interstate maintenance program under title 23 or 
                under sections 5310 and 5311 of this chapter shall be 
                selected, from the approved statewide transportation 
                improvement program, by the State in consultation with 
                the affected nonmetropolitan local officials with 
                responsibility for transportation.
            ``(7) Transportation improvement program approval.--Every 4 
        years, a transportation improvement program developed under this 
        subsection shall be reviewed and approved by the Secretary if 
        based on a current planning finding.
            ``(8) <<NOTE: Time period.>> Planning finding.--A finding 
        shall be made by the Secretary at least every 4 years that the 
        transportation planning process through which statewide 
        transportation plans and programs are developed is consistent 
        with this section and section 5303.
            ``(9) Modifications to project priority.--Notwithstanding 
        any other provision of law, action by the Secretary shall not be 
        required to advance a project included in the approved 
        transportation improvement program in place of another project 
        in the program.

    ``(h) Performance-based Planning Processes Evaluation.--
            ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall 
        establish criteria to evaluate the effectiveness of the 
        performance-based planning processes of States, taking into 
        consideration the following:
                    ``(A) The extent to which the State is making 
                progress toward achieving, the performance targets 
                described in subsection (d)(2), taking into account 
                whether the State developed appropriate performance 
                targets.
                    ``(B) The extent to which the State has made 
                transportation investments that are efficient and cost-
                effective.
                    ``(C) <<NOTE: Public information.>> The extent to 
                which the State--
                          ``(i) has developed an investment process that 
                      relies on public input and awareness to ensure 
                      that investments are transparent and accountable; 
                      and
                          ``(ii) provides reports allowing the public to 
                      access the information being collected in a format 
                      that allows the public to meaningfully assess the 
                      performance of the State.
            ``(2) Report.--

[[Page 126 STAT. 651]]

                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the Federal Public Transportation 
                Act of 2012, the Secretary shall submit to Congress a 
                report evaluating--
                          ``(i) the overall effectiveness of 
                      performance-based planning as a tool for guiding 
                      transportation investments; and
                          ``(ii) the effectiveness of the performance-
                      based planning process of each State.
                    ``(B) Publication.--The report under subparagraph 
                (A) shall be published or otherwise made available in 
                electronically accessible formats and means, including 
                on the Internet.

    ``(i) Treatment of Certain State Laws as Congestion Management 
Processes.--For purposes of this section and section 5303, and sections 
134 and 135 of title 23, State laws, rules, or regulations pertaining to 
congestion management systems or programs may constitute the congestion 
management process under this this section and section 5303, and 
sections 134 and 135 of title 23, if the Secretary finds that the State 
laws, rules, or regulations are consistent with, and fulfill the intent 
of, the purposes of this section and section 5303, and sections 134 and 
135 of title 23, as appropriate.
    ``(j) Continuation of Current Review Practice.--Since the statewide 
transportation plan and the transportation improvement program described 
in this section are subject to a reasonable opportunity for public 
comment, since individual projects included in the statewide 
transportation plans and the transportation improvement program are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning statewide transportation plans or the transportation 
improvement program described in this section have not been reviewed 
under that Act as of January 1, 1997, any decision by the Secretary 
concerning a metropolitan or statewide transportation plan or the 
transportation improvement program described in this section shall not 
be considered to be a Federal action subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(k) <<NOTE: Guidance.>> Schedule for Implementation.--The 
Secretary shall issue guidance on a schedule for implementation of the 
changes made by this section, taking into consideration the established 
planning update cycle for States. The Secretary shall not require a 
State to deviate from its established planning update cycle to implement 
changes made by this section. <<NOTE: Deadline.>> States shall reflect 
changes made to their transportation plan or transportation improvement 
program updates not later than 2 years after the date of issuance of 
guidance by the Secretary under this subsection.

    ``(l) Designation of Regional Transportation Planning 
Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a State may establish and 
        designate regional transportation planning organizations to 
        enhance the planning, coordination, and implementation of 
        statewide strategic long-range transportation plans and 
        transportation improvement programs, with an emphasis on 
        addressing the needs of nonmetropolitan areas of the State.

[[Page 126 STAT. 652]]

            ``(2) Structure.--A regional transportation planning 
        organization shall be established as a multijurisdictional 
        organization of nonmetropolitan local officials or their 
        designees who volunteer for such organization and 
        representatives of local transportation systems who volunteer 
        for such organization.
            ``(3) Requirements.--A regional transportation planning 
        organization shall establish, at a minimum--
                    ``(A) a policy committee, the majority of which 
                shall consist of nonmetropolitan local officials, or 
                their designees, and, as appropriate, additional 
                representatives from the State, private business, 
                transportation service providers, economic development 
                practitioners, and the public in the region; and
                    ``(B) a fiscal and administrative agent, such as an 
                existing regional planning and development organization, 
                to provide professional planning, management, and 
                administrative support.
            ``(4) Duties.--The duties of a regional transportation 
        planning organization shall include--
                    ``(A) developing and maintaining, in cooperation 
                with the State, regional long-range multimodal 
                transportation plans;
                    ``(B) developing a regional transportation 
                improvement program for consideration by the State;
                    ``(C) fostering the coordination of local planning, 
                land use, and economic development plans with State, 
                regional, and local transportation plans and programs;
                    ``(D) providing technical assistance to local 
                officials;
                    ``(E) participating in national, multistate, and 
                State policy and planning development processes to 
                ensure the regional and local input of nonmetropolitan 
                areas;
                    ``(F) providing a forum for public participation in 
                the statewide and regional transportation planning 
                processes;
                    ``(G) considering and sharing plans and programs 
                with neighboring regional transportation planning 
                organizations, metropolitan planning organizations, and, 
                where appropriate, tribal organizations; and
                    ``(H) conducting other duties, as necessary, to 
                support and enhance the statewide planning process under 
                subsection (d).
            ``(5) States without regional transportation planning 
        organizations.-- <<NOTE: Consultation.>> If a State chooses not 
        to establish or designate a regional transportation planning 
        organization, the State shall consult with affected 
        nonmetropolitan local officials to determine projects that may 
        be of regional significance.''.
SEC. 20007. URBANIZED AREA FORMULA GRANTS.

    Section 5307 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5307. Urbanized area formula grants

    ``(a) General Authority.--
            ``(1) Grants.--The Secretary may make grants under this 
        section for--
                    ``(A) capital projects;
                    ``(B) planning;

[[Page 126 STAT. 653]]

                    ``(C) job access and reverse commute projects; and
                    ``(D) operating costs of equipment and facilities 
                for use in public transportation in an urbanized area 
                with a population of fewer than 200,000 individuals, as 
                determined by the Bureau of the Census.
            ``(2) Special rule.--The Secretary may make grants under 
        this section to finance the operating cost of equipment and 
        facilities for use in public transportation, excluding rail 
        fixed guideway, in an urbanized area with a population of not 
        fewer than 200,000 individuals, as determined by the Bureau of 
        the Census--
                    ``(A) for public transportation systems that operate 
                75 or fewer buses in fixed route service during peak 
                service hours, in an amount not to exceed 75 percent of 
                the share of the apportionment which is attributable to 
                such systems within the urbanized area, as measured by 
                vehicle revenue hours; and
                    ``(B) for public transportation systems that operate 
                a minimum of 76 buses and a maximum of 100 buses in 
                fixed route service during peak service hours, in an 
                amount not to exceed 50 percent of the share of the 
                apportionment which is attributable to such systems 
                within the urbanized area, as measured by vehicle 
                revenue hours.

    ``(b) <<NOTE: Public information.>> Program of Projects.--Each 
recipient of a grant shall--
            ``(1) make available to the public information on amounts 
        available to the recipient under this section;
            ``(2) develop, in consultation with interested parties, 
        including private transportation providers, a proposed program 
        of projects for activities to be financed;
            ``(3) <<NOTE: Publication.>> publish a proposed program of 
        projects in a way that affected individuals, private 
        transportation providers, and local elected officials have the 
        opportunity to examine the proposed program and submit comments 
        on the proposed program and the performance of the recipient;
            ``(4) provide an opportunity for a public hearing in which 
        to obtain the views of individuals on the proposed program of 
        projects;
            ``(5) ensure that the proposed program of projects provides 
        for the coordination of public transportation services assisted 
        under section 5336 of this title with transportation services 
        assisted from other United States Government sources;
            ``(6) consider comments and views received, especially those 
        of private transportation providers, in preparing the final 
        program of projects; and
            ``(7) make the final program of projects available to the 
        public.

    ``(c) Grant Recipient Requirements.--A recipient may receive a grant 
in a fiscal year only if--
            ``(1) <<NOTE: Certification.>> the recipient, within the 
        time the Secretary prescribes, submits a final program of 
        projects prepared under subsection (b) of this section and a 
        certification for that fiscal year that the recipient (including 
        a person receiving amounts from a Governor under this section)--
                    ``(A) has or will have the legal, financial, and 
                technical capacity to carry out the program, including 
                safety and security aspects of the program;

[[Page 126 STAT. 654]]

                    ``(B) has or will have satisfactory continuing 
                control over the use of equipment and facilities;
                    ``(C) will maintain equipment and facilities;
                    ``(D) will ensure that, during non-peak hours for 
                transportation using or involving a facility or 
                equipment of a project financed under this section, a 
                fare that is not more than 50 percent of the peak hour 
                fare will be charged for any--
                          ``(i) senior;
                          ``(ii) individual who, because of illness, 
                      injury, age, congenital malfunction, or other 
                      incapacity or temporary or permanent disability 
                      (including an individual who is a wheelchair user 
                      or has semiambulatory capability), cannot use a 
                      public transportation service or a public 
                      transportation facility effectively without 
                      special facilities, planning, or design; and
                          ``(iii) individual presenting a Medicare card 
                      issued to that individual under title II or XVIII 
                      of the Social Security Act (42 U.S.C. 401 et seq. 
                      and 1395 et seq.);
                    ``(E) in carrying out a procurement under this 
                section, will comply with sections 5323 and 5325;
                    ``(F) has complied with subsection (b) of this 
                section;
                    ``(G) has available and will provide the required 
                amounts as provided by subsection (d) of this section;
                    ``(H) will comply with sections 5303 and 5304;
                    ``(I) <<NOTE: Public comment.>> has a locally 
                developed process to solicit and consider public comment 
                before raising a fare or carrying out a major reduction 
                of transportation;
                    ``(J)(i) will expend for each fiscal year for public 
                transportation security projects, including increased 
                lighting in or adjacent to a public transportation 
                system (including bus stops, subway stations, parking 
                lots, and garages), increased camera surveillance of an 
                area in or adjacent to that system, providing an 
                emergency telephone line to contact law enforcement or 
                security personnel in an area in or adjacent to that 
                system, and any other project intended to increase the 
                security and safety of an existing or planned public 
                transportation system, at least 1 percent of the amount 
                the recipient receives for each fiscal year under 
                section 5336 of this title; or
                    ``(ii) has decided that the expenditure for security 
                projects is not necessary;
                    ``(K) in the case of a recipient for an urbanized 
                area with a population of not fewer than 200,000 
                individuals, as determined by the Bureau of the Census--
                          ``(i) will expend not less than 1 percent of 
                      the amount the recipient receives each fiscal year 
                      under this section for associated transit 
                      improvements, as defined in section 5302; and
                          ``(ii) <<NOTE: Reports.>> will submit an 
                      annual report listing projects carried out in the 
                      preceding fiscal year with those funds; and
                    ``(L) will comply with section 5329(d); and
            ``(2) the Secretary accepts the certification.

    ``(d) Government Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project under 
        this section shall be for 80 percent of the net project cost

[[Page 126 STAT. 655]]

        of the project. The recipient may provide additional local 
        matching amounts.
            ``(2) Operating expenses.--A grant for operating expenses 
        under this section may not exceed 50 percent of the net project 
        cost of the project.
            ``(3) Remaining costs.--Subject to paragraph (4), the 
        remainder of the net project costs shall be provided--
                    ``(A) in cash from non-Government sources other than 
                revenues from providing public transportation services;
                    ``(B) from revenues from the sale of advertising and 
                concessions;
                    ``(C) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or reserve, or new 
                capital;
                    ``(D) from amounts appropriated or otherwise made 
                available to a department or agency of the Government 
                (other than the Department of Transportation) that are 
                eligible to be expended for transportation; and
                    ``(E) from amounts received under a service 
                agreement with a State or local social service agency or 
                private social service organization.
            ``(4) Use of certain funds.--For purposes of subparagraphs 
        (D) and (E) of paragraph (3), the prohibitions on the use of 
        funds for matching requirements under section 403(a)(5)(C)(vii) 
        of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall 
        not apply to Federal or State funds to be used for 
        transportation purposes.

    ``(e) Undertaking Projects in Advance.--
            ``(1) Payment.--The Secretary may pay the Government share 
        of the net project cost to a State or local governmental 
        authority that carries out any part of a project eligible under 
        subparagraph (A) or (B) of subsection (a)(1) without the aid of 
        amounts of the Government and according to all applicable 
        procedures and requirements if--
                    ``(A) the recipient applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before carrying out any part of the project, 
                the Secretary approves the plans and specifications for 
                the part in the same way as for other projects under 
                this section.
            ``(2) Approval of application.--The Secretary may approve an 
        application under paragraph (1) of this subsection only if an 
        authorization for this section is in effect for the fiscal year 
        to which the application applies. The Secretary may not approve 
        an application if the payment will be more than--
                    ``(A) the recipient's expected apportionment under 
                section 5336 of this title if the total amount 
                authorized to be appropriated for the fiscal year to 
                carry out this section is appropriated; less
                    ``(B) the maximum amount of the apportionment that 
                may be made available for projects for operating 
                expenses under this section.
            ``(3) Financing costs.--
                    ``(A) In general.--The cost of carrying out part of 
                a project includes the amount of interest earned and 
                payable on bonds issued by the recipient to the extent 
                proceeds of the bonds are expended in carrying out the 
                part.

[[Page 126 STAT. 656]]

                    ``(B) Limitation on the amount of interest.--The 
                amount of interest allowed under this paragraph may not 
                be more than the most favorable financing terms 
                reasonably available for the project at the time of 
                borrowing.
                    ``(C) Certification.--The applicant shall certify, 
                in a manner satisfactory to the Secretary, that the 
                applicant has shown reasonable diligence in seeking the 
                most favorable financing terms.

    ``(f) Reviews, Audits, and Evaluations.--
            ``(1) Annual review.--
                    ``(A) In general.--At least annually, the Secretary 
                shall carry out, or require a recipient to have carried 
                out independently, reviews and audits the Secretary 
                considers appropriate to establish whether the recipient 
                has carried out--
                          ``(i) the activities proposed under subsection 
                      (c) of this section in a timely and effective way 
                      and can continue to do so; and
                          ``(ii) those activities and its certifications 
                      and has used amounts of the Government in the way 
                      required by law.
                    ``(B) Auditing procedures.--An audit of the use of 
                amounts of the Government shall comply with the auditing 
                procedures of the Comptroller General.
            ``(2) Triennial review.--At least once every 3 years, the 
        Secretary shall review and evaluate completely the performance 
        of a recipient in carrying out the recipient's program, 
        specifically referring to compliance with statutory and 
        administrative requirements and the extent to which actual 
        program activities are consistent with the activities proposed 
        under subsection (c) of this section and the planning process 
        required under sections 5303, 5304, and 5305 of this title. To 
        the extent practicable, the Secretary shall coordinate such 
        reviews with any related State or local reviews.
            ``(3) Actions resulting from review, audit, or evaluation.--
        The Secretary may take appropriate action consistent with a 
        review, audit, and evaluation under this subsection, including 
        making an appropriate adjustment in the amount of a grant or 
        withdrawing the grant.

    ``(g) Treatment.--For purposes of this section, the United States 
Virgin Islands shall be treated as an urbanized area, as defined in 
section 5302.
    ``(h) Passenger Ferry Grants.--
            ``(1) In general.--The Secretary may make grants under this 
        subsection to recipients for passenger ferry projects that are 
        eligible for a grant under subsection (a).
            ``(2) Grant requirements.--Except as otherwise provided in 
        this subsection, a grant under this subsection shall be subject 
        to the same terms and conditions as a grant under subsection 
        (a).
            ``(3) Competitive process.--The Secretary shall solicit 
        grant applications and make grants for eligible projects on a 
        competitive basis.''.
SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

    (a) In General.--Section 5309 of title 49, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 657]]

``Sec. 5309. Fixed guideway capital investment grants

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Applicant.--The term `applicant' means a State or 
        local governmental authority that applies for a grant under this 
        section.
            ``(2) Core capacity improvement project.--The term `core 
        capacity improvement project' means a substantial corridor-based 
        capital investment in an existing fixed guideway system that 
        increases the capacity of a corridor by not less than 10 
        percent. The term does not include project elements designed to 
        maintain a state of good repair of the existing fixed guideway 
        system.
            ``(3) Corridor-based bus rapid transit project.--The term 
        `corridor-based bus rapid transit project' means a small start 
        project utilizing buses in which the project represents a 
        substantial investment in a defined corridor as demonstrated by 
        features that emulate the services provided by rail fixed 
        guideway public transportation systems, including defined 
        stations; traffic signal priority for public transportation 
        vehicles; short headway bidirectional services for a substantial 
        part of weekdays and weekend days; and any other features the 
        Secretary may determine support a long-term corridor investment, 
        but the majority of which does not operate in a separated right-
        of-way dedicated for public transportation use during peak 
        periods.
            ``(4) Fixed guideway bus rapid transit project.--The term 
        `fixed guideway bus rapid transit project' means a bus capital 
        project--
                    ``(A) in which the majority of the project operates 
                in a separated right-of-way dedicated for public 
                transportation use during peak periods;
                    ``(B) that represents a substantial investment in a 
                single route in a defined corridor or subarea; and
                    ``(C) that includes features that emulate the 
                services provided by rail fixed guideway public 
                transportation systems, including--
                          ``(i) defined stations;
                          ``(ii) traffic signal priority for public 
                      transportation vehicles;
                          ``(iii) short headway bidirectional services 
                      for a substantial part of weekdays and weekend 
                      days; and
                          ``(iv) any other features the Secretary may 
                      determine are necessary to produce high-quality 
                      public transportation services that emulate the 
                      services provided by rail fixed guideway public 
                      transportation systems.
            ``(5) New fixed guideway capital project.--The term `new 
        fixed guideway capital project' means--
                    ``(A) a new fixed guideway project that is a minimum 
                operable segment or extension to an existing fixed 
                guideway system; or
                    ``(B) a fixed guideway bus rapid transit project 
                that is a minimum operable segment or an extension to an 
                existing bus rapid transit system.

[[Page 126 STAT. 658]]

            ``(6) Program of interrelated projects.--The term `program 
        of interrelated projects' means the simultaneous development 
        of--
                    ``(A) 2 or more new fixed guideway capital projects 
                or core capacity improvement projects; or
                    ``(B) 1 or more new fixed guideway capital projects 
                and 1 or more core capacity improvement projects.
            ``(7) Small start project.--The term `small start project' 
        means a new fixed guideway capital project or corridor-based bus 
        rapid transit project for which--
                    ``(A) the Federal assistance provided or to be 
                provided under this section is less than $75,000,000; 
                and
                    ``(B) the total estimated net capital cost is less 
                than $250,000,000.

    ``(b) General Authority.--The Secretary may make grants under this 
section to State and local governmental authorities to assist in 
financing--
            ``(1) new fixed guideway capital projects or small start 
        projects, including the acquisition of real property, the 
        initial acquisition of rolling stock for the system, the 
        acquisition of rights-of-way, and relocation, for fixed guideway 
        corridor development for projects in the advanced stages of 
        project development or engineering; and
            ``(2) core capacity improvement projects, including the 
        acquisition of real property, the acquisition of rights-of-way, 
        double tracking, signalization improvements, electrification, 
        expanding system platforms, acquisition of rolling stock 
        associated with corridor improvements increasing capacity, 
        construction of infill stations, and such other capacity 
        improvement projects as the Secretary determines are appropriate 
        to increase the capacity of an existing fixed guideway system 
        corridor by at least 10 percent. Core capacity improvement 
        projects do not include elements to improve general station 
        facilities or parking, or acquisition of rolling stock alone.

    ``(c) Grant Requirements.--
            ``(1) In general.--The Secretary may make a grant under this 
        section for new fixed guideway capital projects, small start 
        projects, or core capacity improvement projects, if the 
        Secretary determines that--
                    ``(A) the project is part of an approved 
                transportation plan required under sections 5303 and 
                5304; and
                    ``(B) the applicant has, or will have--
                          ``(i) the legal, financial, and technical 
                      capacity to carry out the project, including the 
                      safety and security aspects of the project;
                          ``(ii) satisfactory continuing control over 
                      the use of the equipment or facilities; and
                          ``(iii) the technical and financial capacity 
                      to maintain new and existing equipment and 
                      facilities.
            ``(2) Certification.--An applicant that has submitted the 
        certifications required under subparagraphs (A), (B), (C), and 
        (H) of section 5307(c)(1) shall be deemed to have provided 
        sufficient information upon which the Secretary may make the 
        determinations required under this subsection.
            ``(3) Technical capacity.--The Secretary shall use an 
        expedited technical capacity review process for applicants that 
        have recently and successfully completed at least 1 new fixed

[[Page 126 STAT. 659]]

        guideway capital project, or core capacity improvement project, 
        if--
                    ``(A) the applicant achieved budget, cost, and 
                ridership outcomes for the project that are consistent 
                with or better than projections; and
                    ``(B) the applicant demonstrates that the applicant 
                continues to have the staff expertise and other 
                resources necessary to implement a new project.
            ``(4) Recipient requirements.--A recipient of a grant 
        awarded under this section shall be subject to all terms, 
        conditions, requirements, and provisions that the Secretary 
        determines to be necessary or appropriate for purposes of this 
        section.

    ``(d) New Fixed Guideway Grants.--
            ``(1) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A new fixed guideway capital project 
                shall enter into the project development phase when--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act of 1969 (42 
                                U.S.C. 4321 et seq.) with respect to the 
                                project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including, when 
                                necessary, a detailed description of any 
                                information deemed insufficient; and
                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the new fixed 
                                guideway capital project is entering the 
                                project development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification, policies and land use patterns 
                that promote public transportation, and local financial 
                commitment under this subsection.
                    ``(C) Completion of project development activities 
                required.--
                          ``(i) <<NOTE: Deadline.>> In general.--Not 
                      later than 2 years after the date on which a 
                      project enters into the project development phase, 
                      the applicant shall complete the activities 
                      required to obtain a project rating under 
                      subsection (g)(2) and submit completed 
                      documentation to the Secretary.
                          ``(ii) Extension of time.--Upon the request of 
                      an applicant, the Secretary may extend the time 
                      period

[[Page 126 STAT. 660]]

                      under clause (i), if the applicant submits to the 
                      Secretary--
                                    ``(I) a reasonable plan for 
                                completing the activities required under 
                                this paragraph; and
                                    ``(II) an estimated time period 
                                within which the applicant will complete 
                                such activities.
            ``(2) Engineering phase.--
                    ``(A) <<NOTE: Determination.>> In general.--A new 
                fixed guideway capital project may advance to the 
                engineering phase upon completion of activities required 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), as demonstrated by a record of 
                decision with respect to the project, a finding that the 
                project has no significant impact, or a determination 
                that the project is categorically excluded, only if the 
                Secretary determines that the project--
                          ``(i) is selected as the locally preferred 
                      alternative at the completion of the process 
                      required under the National Environmental Policy 
                      Act of 1969 (42 U.S.C. 4321 et seq.);
                          ``(ii) is adopted into the metropolitan 
                      transportation plan required under section 5303;
                          ``(iii) is justified based on a comprehensive 
                      review of the project's mobility improvements, the 
                      project's environmental benefits, congestion 
                      relief associated with the project, economic 
                      development effects associated with the project, 
                      policies and land use patterns of the project that 
                      support public transportation, and the project's 
                      cost-effectiveness as measured by cost per rider;
                          ``(iv) is supported by policies and land use 
                      patterns that promote public transportation, 
                      including plans for future land use and rezoning, 
                      and economic development around public 
                      transportation stations; and
                          ``(v) is supported by an acceptable degree of 
                      local financial commitment (including evidence of 
                      stable and dependable financing sources), as 
                      required under subsection (f).
                    ``(B) <<NOTE: Evaluation.>> Determination that 
                project is justified.--In making a determination under 
                subparagraph (A)(iii), the Secretary shall evaluate, 
                analyze, and consider--
                          ``(i) the reliability of the forecasting 
                      methods used to estimate costs and utilization 
                      made by the recipient and the contractors to the 
                      recipient; and
                          ``(ii) population density and current public 
                      transportation ridership in the transportation 
                      corridor.

    ``(e) Core Capacity Improvement Projects.--
            ``(1) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A core capacity improvement project 
                shall be deemed to have entered into the project 
                development phase if--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act

[[Page 126 STAT. 661]]

                                of 1969 (42 U.S.C. 4321 et seq.) with 
                                respect to the project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including when 
                                necessary a detailed description of any 
                                information deemed insufficient; and
                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the core 
                                capacity improvement project is entering 
                                the project development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification and local financial commitment 
                under this subsection.
                    ``(C) Completion of project development activities 
                required.--
                          ``(i) <<NOTE: Deadline.>> In general.--Not 
                      later than 2 years after the date on which a 
                      project enters into the project development phase, 
                      the applicant shall complete the activities 
                      required to obtain a project rating under 
                      subsection (g)(2) and submit completed 
                      documentation to the Secretary.
                          ``(ii) Extension of time.--Upon the request of 
                      an applicant, the Secretary may extend the time 
                      period under clause (i), if the applicant submits 
                      to the Secretary--
                                    ``(I) a reasonable plan for 
                                completing the activities required under 
                                this paragraph; and
                                    ``(II) an estimated time period 
                                within which the applicant will complete 
                                such activities.
            ``(2) Engineering phase.--
                    ``(A) <<NOTE: Determination.>> In general.--A core 
                capacity improvement project may advance into the 
                engineering phase upon completion of activities required 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), as demonstrated by a record of 
                decision with respect to the project, a finding that the 
                project has no significant impact, or a determination 
                that the project is categorically excluded, only if the 
                Secretary determines that the project--
                          ``(i) is selected as the locally preferred 
                      alternative at the completion of the process 
                      required under the National Environmental Policy 
                      Act of 1969;
                          ``(ii) is adopted into the metropolitan 
                      transportation plan required under section 5303;
                          ``(iii) is in a corridor that is--
                                    ``(I) at or over capacity; or
                                    ``(II) projected to be at or over 
                                capacity within the next 5 years;

[[Page 126 STAT. 662]]

                          ``(iv) is justified based on a comprehensive 
                      review of the project's mobility improvements, the 
                      project's environmental benefits, congestion 
                      relief associated with the project, economic 
                      development effects associated with the project, 
                      the capacity needs of the corridor, and the 
                      project's cost-effectiveness as measured by cost 
                      per rider; and
                          ``(v) is supported by an acceptable degree of 
                      local financial commitment (including evidence of 
                      stable and dependable financing sources), as 
                      required under subsection (f).
                    ``(B) <<NOTE: Evaluation.>> Determination that 
                project is justified.--In making a determination under 
                subparagraph (A)(iv), the Secretary shall evaluate, 
                analyze, and consider--
                          ``(i) the reliability of the forecasting 
                      methods used to estimate costs and utilization 
                      made by the recipient and the contractors to the 
                      recipient;
                          ``(ii) whether the project will increase 
                      capacity at least 10 percent in a corridor;
                          ``(iii) whether the project will improve 
                      interconnectivity among existing systems; and
                          ``(iv) whether the project will improve 
                      environmental outcomes.

    ``(f) Financing Sources.--
            ``(1) Requirements.--In determining whether a project is 
        supported by an acceptable degree of local financial commitment 
        and shows evidence of stable and dependable financing sources 
        for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the 
        Secretary shall require that--
                    ``(A) the proposed project plan provides for the 
                availability of contingency amounts that the Secretary 
                determines to be reasonable to cover unanticipated cost 
                increases or funding shortfalls;
                    ``(B) each proposed local source of capital and 
                operating financing is stable, reliable, and available 
                within the proposed project timetable; and
                    ``(C) local resources are available to recapitalize, 
                maintain, and operate the overall existing and proposed 
                public transportation system, including essential feeder 
                bus and other services necessary to achieve the 
                projected ridership levels without requiring a reduction 
                in existing public transportation services or level of 
                service to operate the project.
            ``(2) Considerations.--In assessing the stability, 
        reliability, and availability of proposed sources of local 
        financing for purposes of subsection (d)(2)(A)(v) or 
        (e)(2)(A)(v), the Secretary shall consider--
                    ``(A) the reliability of the forecasting methods 
                used to estimate costs and revenues made by the 
                recipient and the contractors to the recipient;
                    ``(B) existing grant commitments;
                    ``(C) the degree to which financing sources are 
                dedicated to the proposed purposes;
                    ``(D) any debt obligation that exists, or is 
                proposed by the recipient, for the proposed project or 
                other public transportation purpose;

[[Page 126 STAT. 663]]

                    ``(E) the extent to which the project has a local 
                financial commitment that exceeds the required non-
                Government share of the cost of the project; and
                    ``(F) private contributions to the project, 
                including cost-effective project delivery, management or 
                transfer of project risks, expedited project schedule, 
                financial partnering, and other public-private 
                partnership strategies.

    ``(g) Project Advancement and Ratings.--
            ``(1) <<NOTE: Determination.>> Project advancement.--A new 
        fixed guideway capital project or core capacity improvement 
        project proposed to be carried out using a grant under this 
        section may not advance from the project development phase to 
        the engineering phase, or from the engineering phase to the 
        construction phase, unless the Secretary determines that--
                    ``(A) the project meets the applicable requirements 
                under this section; and
                    ``(B) there is a reasonable likelihood that the 
                project will continue to meet the requirements under 
                this section.
            ``(2) Ratings.--
                    ``(A) <<NOTE: Evaluation.>> Overall rating.--In 
                making a determination under paragraph (1), the 
                Secretary shall evaluate and rate a project as a whole 
                on a 5-point scale (high, medium-high, medium, medium-
                low, or low) based on--
                          ``(i) in the case of a new fixed guideway 
                      capital project, the project justification 
                      criteria under subsection (d)(2)(A)(iii), the 
                      policies and land use patterns that support public 
                      transportation, and the degree of local financial 
                      commitment; and
                          ``(ii) in the case of a core capacity 
                      improvement project, the capacity needs of the 
                      corridor, the project justification criteria under 
                      subsection (e)(2)(A)(iv), and the degree of local 
                      financial commitment.
                    ``(B) Individual ratings for each criterion.--In 
                rating a project under this paragraph, the Secretary 
                shall--
                          ``(i) provide, in addition to the overall 
                      project rating under subparagraph (A), individual 
                      ratings for each of the criteria established under 
                      subsection (d)(2)(A)(iii) or (e)(2)(A)(iv), as 
                      applicable; and
                          ``(ii) give comparable, but not necessarily 
                      equal, numerical weight to each of the criteria 
                      established under subsections (d)(2)(A)(iii) or 
                      (e)(2)(A)(iv), as applicable, in calculating the 
                      overall project rating under clause (i).
                    ``(C) Medium rating not required.--The Secretary 
                shall not require that any single project justification 
                criterion meet or exceed a `medium' rating in order to 
                advance the project from one phase to another.
            ``(3) Warrants.--The Secretary shall, to the maximum extent 
        practicable, develop and use special warrants for making a 
        project justification determination under subsection (d)(2) or 
        (e)(2), as applicable, for a project proposed to be funded using 
        a grant under this section, if--
                    ``(A) the share of the cost of the project to be 
                provided under this section does not exceed--
                          ``(i) $100,000,000; or
                          ``(ii) 50 percent of the total cost of the 
                      project;
                    ``(B) the applicant requests the use of the 
                warrants;

[[Page 126 STAT. 664]]

                    ``(C) <<NOTE: Certification.>> the applicant 
                certifies that its existing public transportation system 
                is in a state of good repair; and
                    ``(D) the applicant meets any other requirements 
                that the Secretary considers appropriate to carry out 
                this subsection.
            ``(4) Letters of intent and early systems work agreements.--
        In order to expedite a project under this subsection, the 
        Secretary shall, to the maximum extent practicable, issue 
        letters of intent and enter into early systems work agreements 
        upon issuance of a record of decision for projects that receive 
        an overall project rating of medium or better.
            ``(5) Policy guidance.--The Secretary shall issue policy 
        guidance regarding the review and evaluation process and 
        criteria--
                    ``(A) <<NOTE: Deadline.>> not later than 180 days 
                after the date of enactment of the Federal Public 
                Transportation Act of 2012; and
                    ``(B) each time the Secretary makes significant 
                changes to the process and criteria, but not less 
                frequently than once every 2 years.
            ``(6) <<NOTE: Deadline.>> Rules.--Not later than 1 year 
        after the date of enactment of the Federal Public Transportation 
        Act of 2012, the Secretary shall issue rules establishing an 
        evaluation and rating process for--
                    ``(A) new fixed guideway capital projects that is 
                based on the results of project justification, policies 
                and land use patterns that promote public 
                transportation, and local financial commitment, as 
                required under this subsection; and
                    ``(B) core capacity improvement projects that is 
                based on the results of the capacity needs of the 
                corridor, project justification, and local financial 
                commitment.
            ``(7) Applicability.--This subsection shall not apply to a 
        project for which the Secretary issued a letter of intent, 
        entered into a full funding grant agreement, or entered into a 
        project construction agreement before the date of enactment of 
        the Federal Public Transportation Act of 2012.

    ``(h) Small Start Projects.--
            ``(1) In general.--A small start project shall be subject to 
        the requirements of this subsection.
            ``(2) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A new small starts project shall 
                enter into the project development phase when--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act of 1969 (42 
                                U.S.C. 4321 et seq.) with respect to the 
                                project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including, when 
                                necessary, a detailed description of any 
                                information deemed insufficient; and

[[Page 126 STAT. 665]]

                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the small 
                                starts project is entering the project 
                                development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification, policies and land use patterns 
                that promote public transportation, and local financial 
                commitment under this subsection.
            ``(3) <<NOTE: Determination.>> Selection criteria.--The 
        Secretary may provide Federal assistance for a small start 
        project under this subsection only if the Secretary determines 
        that the project--
                    ``(A) has been adopted as the locally preferred 
                alternative as part of the metropolitan transportation 
                plan required under section 5303;
                    ``(B) is based on the results of an analysis of the 
                benefits of the project as set forth in paragraph (4); 
                and
                    ``(C) is supported by an acceptable degree of local 
                financial commitment.
            ``(4) Evaluation of benefits and federal investment.--In 
        making a determination for a small start project under paragraph 
        (3)(B), the Secretary shall analyze, evaluate, and consider the 
        following evaluation criteria for the project (as compared to a 
        no-action alternative): mobility improvements, environmental 
        benefits, congestion relief, economic development effects 
        associated with the project, policies and land use patterns that 
        support public transportation and cost-effectiveness as measured 
        by cost per rider.
            ``(5) Evaluation of local financial commitment.--For 
        purposes of paragraph (3)(C), the Secretary shall require that 
        each proposed local source of capital and operating financing is 
        stable, reliable, and available within the proposed project 
        timetable.
            ``(6) <<NOTE: Evaluation.>> Ratings.--In carrying out 
        paragraphs (4) and (5) for a small start project, the Secretary 
        shall evaluate and rate the project on a 5-point scale (high, 
        medium-high, medium, medium-low, or low) based on an evaluation 
        of the benefits of the project as compared to the Federal 
        assistance to be provided and the degree of local financial 
        commitment, as required under this subsection. In rating the 
        projects, the Secretary shall provide, in addition to the 
        overall project rating, individual ratings for each of the 
        criteria established by this subsection and shall give 
        comparable, but not necessarily equal, numerical weight to the 
        benefits that the project will bring to the community in 
        calculating the overall project rating.
            ``(7) Grants and expedited grant agreements.--
                    ``(A) In general.--The Secretary, to the maximum 
                extent practicable, shall provide Federal assistance 
                under this subsection in a single grant. If the 
                Secretary cannot provide such a single grant, the 
                Secretary may execute

[[Page 126 STAT. 666]]

                an expedited grant agreement in order to include a 
                commitment on the part of the Secretary to provide 
                funding for the project in future fiscal years.
                    ``(B) Terms of expedited grant agreements.--In 
                executing an expedited grant agreement under this 
                subsection, the Secretary may include in the agreement 
                terms similar to those established under subsection 
                (k)(2).
                    ``(C) Notice of proposed grants and expedited grant 
                agreements.-- <<NOTE: Time period.>> At least 10 days 
                before making a grant award or entering into a grant 
                agreement for a project under this subsection, the 
                Secretary shall notify, in writing, the Committee on 
                Transportation and Infrastructure and the Committee on 
                Appropriations of the House of Representatives and the 
                Committee on Banking, Housing, and Urban Affairs and the 
                Committee on Appropriations of the Senate of the 
                proposed grant or expedited grant agreement, as well as 
                the evaluations and ratings for the project.

    ``(i) Programs of Interrelated Projects.--
            ``(1) Project development phase.--A federally funded project 
        in a program of interrelated projects shall advance through 
        project development as provided in subsection (d) or (e), as 
        applicable.
            ``(2) <<NOTE: Determination.>> Engineering phase.--A 
        federally funded project in a program of interrelated projects 
        may advance into the engineering phase upon completion of 
        activities required under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of 
        decision with respect to the project, a finding that the project 
        has no significant impact, or a determination that the project 
        is categorically excluded, only if the Secretary determines 
        that--
                    ``(A) the project is selected as the locally 
                preferred alternative at the completion of the process 
                required under the National Environmental Policy Act of 
                1969;
                    ``(B) the project is adopted into the metropolitan 
                transportation plan required under section 5303;
                    ``(C) the program of interrelated projects involves 
                projects that have a logical connectivity to one 
                another;
                    ``(D) the program of interrelated projects, when 
                evaluated as a whole, meets the requirements of 
                subsection (d)(2) or (e)(2), as applicable;
                    ``(E) the program of interrelated projects is 
                supported by a program implementation plan demonstrating 
                that construction will begin on each of the projects in 
                the program of interrelated projects within a reasonable 
                time frame; and
                    ``(F) the program of interrelated projects is 
                supported by an acceptable degree of local financial 
                commitment, as described in subsection (f).
            ``(3) Project advancement and ratings.--
                    ``(A) <<NOTE: Determination.>> Project 
                advancement.--A project receiving a grant under this 
                section that is part of a program of interrelated 
                projects may not advance from the project development 
                phase to the engineering phase, or from the engineering 
                phase to the construction phase, unless the Secretary 
                determines that the program of interrelated projects 
                meets the applicable requirements of this section

[[Page 126 STAT. 667]]

                and there is a reasonable likelihood that the program 
                will continue to meet such requirements.
                    ``(B) Ratings.--
                          ``(i) <<NOTE: Evaluation.>> Overall rating.--
                      In making a determination under subparagraph (A), 
                      the Secretary shall evaluate and rate a program of 
                      interrelated projects on a 5-point scale (high, 
                      medium-high, medium, medium-low, or low) based on 
                      the criteria described in paragraph (2).
                          ``(ii) Individual rating for each criterion.--
                      In rating a program of interrelated projects, the 
                      Secretary shall provide, in addition to the 
                      overall program rating, individual ratings for 
                      each of the criteria described in paragraph (2) 
                      and shall give comparable, but not necessarily 
                      equal, numerical weight to each such criterion in 
                      calculating the overall program rating.
                          ``(iii) Medium rating not required.--The 
                      Secretary shall not require that any single 
                      criterion described in paragraph (2) meet or 
                      exceed a `medium' rating in order to advance the 
                      program of interrelated projects from one phase to 
                      another.
            ``(4) Annual review.--
                    ``(A) Review required.--The Secretary shall annually 
                review the program implementation plan required under 
                paragraph (2)(E) to determine whether the program of 
                interrelated projects is adhering to its schedule.
                    ``(B) Extension of time.--If a program of 
                interrelated projects is not adhering to its schedule, 
                the Secretary may, upon the request of the applicant, 
                grant an extension of time if the applicant submits a 
                reasonable plan that includes--
                          ``(i) evidence of continued adequate funding; 
                      and
                          ``(ii) an estimated time frame for completing 
                      the program of interrelated projects.
                    ``(C) Satisfactory progress required.--If the 
                Secretary determines that a program of interrelated 
                projects is not making satisfactory progress, no Federal 
                funds shall be provided for a project within the program 
                of interrelated projects.
            ``(5) Failure to carry out program of interrelated 
        projects.--
                    ``(A) Repayment required.--If an applicant does not 
                carry out the program of interrelated projects within a 
                reasonable time, for reasons within the control of the 
                applicant, the applicant shall repay all Federal funds 
                provided for the program, and any reasonable interest 
                and penalty charges that the Secretary may establish.
                    ``(B) Crediting of funds received.--Any funds 
                received by the Government under this paragraph, other 
                than interest and penalty charges, shall be credited to 
                the appropriation account from which the funds were 
                originally derived.
            ``(6) Non-federal funds.--Any non-Federal funds committed to 
        a project in a program of interrelated projects may be used to 
        meet a non-Government share requirement for any other project in 
        the program of interrelated projects, if the

[[Page 126 STAT. 668]]

        Government share of the cost of each project within the program 
        of interrelated projects does not exceed 80 percent.
            ``(7) Priority.--In making grants under this section, the 
        Secretary may give priority to programs of interrelated projects 
        for which the non-Government share of the cost of the projects 
        included in the programs of interrelated projects exceeds the 
        non-Government share required under subsection (l).
            ``(8) Non-government projects.--Including a project not 
        financed by the Government in a program of interrelated projects 
        does not impose Government requirements that would not otherwise 
        apply to the project.

    ``(j) Previously Issued Letter of Intent or Full Funding Grant 
Agreement.--Subsections (d) and (e) shall not apply to projects for 
which the Secretary has issued a letter of intent, approved entry into 
final design, entered into a full funding grant agreement, or entered 
into a project construction grant agreement before the date of enactment 
of the Federal Public Transportation Act of 2012.
    ``(k) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            ``(1) Letters of intent.--
                    ``(A) Amounts intended to be obligated.--The 
                Secretary may issue a letter of intent to an applicant 
                announcing an intention to obligate, for a new fixed 
                guideway capital project or core capacity improvement 
                project, an amount from future available budget 
                authority specified in law that is not more than the 
                amount stipulated as the financial participation of the 
                Secretary in the project. When a letter is issued for a 
                capital project under this section, the amount shall be 
                sufficient to complete at least an operable segment.
                    ``(B) Treatment.--The issuance of a letter under 
                subparagraph (A) is deemed not to be an obligation under 
                sections 1108(c), 1501, and 1502(a) of title 31 or an 
                administrative commitment.
            ``(2) Full funding grant agreements.--
                    ``(A) In general.--A new fixed guideway capital 
                project or core capacity improvement project shall be 
                carried out through a full funding grant agreement.
                    ``(B) Criteria.--The Secretary shall enter into a 
                full funding grant agreement, based on the evaluations 
                and ratings required under subsection (d), (e), or (i), 
                as applicable, with each grantee receiving assistance 
                for a new fixed guideway capital project or core 
                capacity improvement project that has been rated as 
                high, medium-high, or medium, in accordance with 
                subsection (g)(2)(A) or (i)(3)(B), as applicable.
                    ``(C) Terms.--A full funding grant agreement shall--
                          ``(i) establish the terms of participation by 
                      the Government in a new fixed guideway capital 
                      project or core capacity improvement project;
                          ``(ii) establish the maximum amount of Federal 
                      financial assistance for the project;
                          ``(iii) include the period of time for 
                      completing the project, even if that period 
                      extends beyond the period of an authorization; and

[[Page 126 STAT. 669]]

                          ``(iv) make timely and efficient management of 
                      the project easier according to the law of the 
                      United States.
                    ``(D) Special financial rules.--
                          ``(i) In general.--A full funding grant 
                      agreement under this paragraph obligates an amount 
                      of available budget authority specified in law and 
                      may include a commitment, contingent on amounts to 
                      be specified in law in advance for commitments 
                      under this paragraph, to obligate an additional 
                      amount from future available budget authority 
                      specified in law.
                          ``(ii) Statement of contingent commitment.--
                      The agreement shall state that the contingent 
                      commitment is not an obligation of the Government.
                          ``(iii) Interest and other financing costs.--
                      Interest and other financing costs of efficiently 
                      carrying out a part of the project within a 
                      reasonable time are a cost of carrying out the 
                      project under a full funding grant agreement, 
                      except that eligible costs may not be more than 
                      the cost of the most favorable financing terms 
                      reasonably available for the project at the time 
                      of borrowing. <<NOTE: Certification.>> The 
                      applicant shall certify, in a way satisfactory to 
                      the Secretary, that the applicant has shown 
                      reasonable diligence in seeking the most favorable 
                      financing terms.
                          ``(iv) Completion of operable segment.--The 
                      amount stipulated in an agreement under this 
                      paragraph for a new fixed guideway capital project 
                      shall be sufficient to complete at least an 
                      operable segment.
                    ``(E) Before and after study.--
                          ``(i) In general.--A full funding grant 
                      agreement under this paragraph shall require the 
                      applicant to conduct a study that--
                                    ``(I) describes and analyzes the 
                                impacts of the new fixed guideway 
                                capital project or core capacity 
                                improvement project on public 
                                transportation services and public 
                                transportation ridership;
                                    ``(II) evaluates the consistency of 
                                predicted and actual project 
                                characteristics and performance; and
                                    ``(III) identifies reasons for 
                                differences between predicted and actual 
                                outcomes.
                          ``(ii) Information collection and analysis 
                      plan.--
                                    ``(I) Submission of plan.--
                                Applicants seeking a full funding grant 
                                agreement under this paragraph shall 
                                submit a complete plan for the 
                                collection and analysis of information 
                                to identify the impacts of the new fixed 
                                guideway capital project or core 
                                capacity improvement project and the 
                                accuracy of the forecasts prepared 
                                during the development of the project. 
                                Preparation of this plan shall be 
                                included in the full funding grant 
                                agreement as an eligible activity.
                                    ``(II) Contents of plan.--The plan 
                                submitted under subclause (I) shall 
                                provide for--
                                            ``(aa) collection of data on 
                                        the current public 
                                        transportation system regarding 
                                        public

[[Page 126 STAT. 670]]

                                        transportation service levels 
                                        and ridership patterns, 
                                        including origins and 
                                        destinations, access modes, trip 
                                        purposes, and rider 
                                        characteristics;
                                            ``(bb) documentation of the 
                                        predicted scope, service levels, 
                                        capital costs, operating costs, 
                                        and ridership of the project;
                                            ``(cc) collection of data on 
                                        the public transportation system 
                                        2 years after the opening of a 
                                        new fixed guideway capital 
                                        project or core capacity 
                                        improvement project, including 
                                        analogous information on public 
                                        transportation service levels 
                                        and ridership patterns and 
                                        information on the as-built 
                                        scope, capital, and financing 
                                        costs of the project; and
                                            ``(dd) analysis of the 
                                        consistency of predicted project 
                                        characteristics with actual 
                                        outcomes.
                    ``(F) Collection of data on current system.--To be 
                eligible for a full funding grant agreement under this 
                paragraph, recipients shall have collected data on the 
                current system, according to the plan required under 
                subparagraph (E)(ii), before the beginning of 
                construction of the proposed new fixed guideway capital 
                project or core capacity improvement project. Collection 
                of this data shall be included in the full funding grant 
                agreement as an eligible activity.
            ``(3) Early systems work agreements.--
                    ``(A) Conditions.--The Secretary may enter into an 
                early systems work agreement with an applicant if a 
                record of decision under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been 
                issued on the project and the Secretary finds there is 
                reason to believe--
                          ``(i) a full funding grant agreement for the 
                      project will be made; and
                          ``(ii) the terms of the work agreement will 
                      promote ultimate completion of the project more 
                      rapidly and at less cost.
                    ``(B) Contents.--
                          ``(i) In general.--An early systems work 
                      agreement under this paragraph obligates budget 
                      authority available under this chapter and title 
                      23 and shall provide for reimbursement of 
                      preliminary costs of carrying out the project, 
                      including land acquisition, timely procurement of 
                      system elements for which specifications are 
                      decided, and other activities the Secretary 
                      decides are appropriate to make efficient, long-
                      term project management easier.
                          ``(ii) Contingent commitment.--An early 
                      systems work agreement may include a commitment, 
                      contingent on amounts to be specified in law in 
                      advance for commitments under this paragraph, to 
                      obligate an additional amount from future 
                      available budget authority specified in law.
                          ``(iii) Period covered.--An early systems work 
                      agreement under this paragraph shall cover the 
                      period

[[Page 126 STAT. 671]]

                      of time the Secretary considers appropriate. The 
                      period may extend beyond the period of current 
                      authorization.
                          ``(iv) Interest and other financing costs.--
                      Interest and other financing costs of efficiently 
                      carrying out the early systems work agreement 
                      within a reasonable time are a cost of carrying 
                      out the agreement, except that eligible costs may 
                      not be more than the cost of the most favorable 
                      financing terms reasonably available for the 
                      project at the time of 
                      borrowing. <<NOTE: Certification.>> The applicant 
                      shall certify, in a way satisfactory to the 
                      Secretary, that the applicant has shown reasonable 
                      diligence in seeking the most favorable financing 
                      terms.
                          ``(v) Failure to carry out project.--If an 
                      applicant does not carry out the project for 
                      reasons within the control of the applicant, the 
                      applicant shall repay all Federal grant funds 
                      awarded for the project from all Federal funding 
                      sources, for all project activities, facilities, 
                      and equipment, plus reasonable interest and 
                      penalty charges allowable by law or established by 
                      the Secretary in the early systems work agreement.
                          ``(vi) Crediting of funds received.--Any funds 
                      received by the Government under this paragraph, 
                      other than interest and penalty charges, shall be 
                      credited to the appropriation account from which 
                      the funds were originally derived.
            ``(4) Limitation on amounts.--
                    ``(A) In general.--The Secretary may enter into full 
                funding grant agreements under this subsection for new 
                fixed guideway capital projects and core capacity 
                improvement projects that contain contingent commitments 
                to incur obligations in such amounts as the Secretary 
                determines are appropriate.
                    ``(B) Appropriation required.--An obligation may be 
                made under this subsection only when amounts are 
                appropriated for the obligation.
            ``(5) <<NOTE: Deadline.>> Notification to congress.--At 
        least 30 days before issuing a letter of intent, entering into a 
        full funding grant agreement, or entering into an early systems 
        work agreement under this section, the Secretary shall notify, 
        in writing, the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Appropriations of the Senate and the 
        Committee on Transportation and Infrastructure and the Committee 
        on Appropriations of the House of Representatives of the 
        proposed letter or agreement. <<NOTE: Records.>> The Secretary 
        shall include with the notification a copy of the proposed 
        letter or agreement as well as the evaluations and ratings for 
        the project.

    ``(l) Government Share of Net Capital Project Cost.--
            ``(1) In general.--Based on engineering studies, studies of 
        economic feasibility, and information on the expected use of 
        equipment or facilities, the Secretary shall estimate the net 
        capital project cost. A grant for a fixed guideway project or 
        small start project shall not exceed 80 percent of the net 
        capital project cost. A grant for a core capacity project shall 
        not exceed 80 percent of the net capital project cost of the 
        incremental cost of increasing the capacity in the corridor.

[[Page 126 STAT. 672]]

            ``(2) Adjustment for completion under budget.--The Secretary 
        may adjust the final net capital project cost of a new fixed 
        guideway capital project or core capacity improvement project 
        evaluated under subsection (d), (e), or (i) to include the cost 
        of eligible activities not included in the originally defined 
        project if the Secretary determines that the originally defined 
        project has been completed at a cost that is significantly below 
        the original estimate.
            ``(3) Maximum government share.--The Secretary may provide a 
        higher grant percentage than requested by the grant recipient 
        if--
                    ``(A) the Secretary determines that the net capital 
                project cost of the project is not more than 10 percent 
                higher than the net capital project cost estimated at 
                the time the project was approved for advancement into 
                the engineering phase; and
                    ``(B) the ridership estimated for the project is not 
                less than 90 percent of the ridership estimated for the 
                project at the time the project was approved for 
                advancement into the engineering phase.
            ``(4) Remainder of net capital project cost.--The remainder 
        of the net capital project cost shall be provided from an 
        undistributed cash surplus, a replacement or depreciation cash 
        fund or reserve, or new capital.
            ``(5) Limitation on statutory construction.--Nothing in this 
        section shall be construed as authorizing the Secretary to 
        require a non-Federal financial commitment for a project that is 
        more than 20 percent of the net capital project cost.
            ``(6) Special rule for rolling stock costs.--In addition to 
        amounts allowed pursuant to paragraph (1), a planned extension 
        to a fixed guideway system may include the cost of rolling stock 
        previously purchased if the applicant satisfies the Secretary 
        that only amounts other than amounts provided by the Government 
        were used and that the purchase was made for use on the 
        extension. A refund or reduction of the remainder may be made 
        only if a refund of a proportional amount of the grant of the 
        Government is made at the same time.
            ``(7) Limitation on applicability.--This subsection shall 
        not apply to projects for which the Secretary entered into a 
        full funding grant agreement before the date of enactment of the 
        Federal Public Transportation Act of 2012.
            ``(8) Special rule for fixed guideway bus rapid transit 
        projects.--For up to three fixed-guideway bus rapid transit 
        projects each fiscal year the Secretary shall--
                    ``(A) establish a Government share of at least 80 
                percent; and
                    ``(B) not lower the project's rating for degree of 
                local financial commitment for purposes of subsections 
                (d)(2)(A)(v) or (h)(3)(C) as a result of the Government 
                share specified in this paragraph.

    ``(m) Undertaking Projects in Advance.--
            ``(1) In general.--The Secretary may pay the Government 
        share of the net capital project cost to a State or local 
        governmental authority that carries out any part of a project 
        described in this section without the aid of amounts of the 
        Government and according to all applicable procedures and 
        requirements if--

[[Page 126 STAT. 673]]

                    ``(A) the State or local governmental authority 
                applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before the State or local governmental 
                authority carries out the part of the project, the 
                Secretary approves the plans and specifications for the 
                part in the same way as other projects under this 
                section.
            ``(2) Financing costs.--
                    ``(A) In general.--The cost of carrying out part of 
                a project includes the amount of interest earned and 
                payable on bonds issued by the State or local 
                governmental authority to the extent proceeds of the 
                bonds are expended in carrying out the part.
                    ``(B) Limitation on amount of interest.--The amount 
                of interest under this paragraph may not be more than 
                the most favorable interest terms reasonably available 
                for the project at the time of borrowing.
                    ``(C) Certification.--The applicant shall certify, 
                in a manner satisfactory to the Secretary, that the 
                applicant has shown reasonable diligence in seeking the 
                most favorable financing terms.

    ``(n) Availability of Amounts.--
            ``(1) In general.--An amount made available or appropriated 
        for a new fixed guideway capital project or core capacity 
        improvement project shall remain available to that project for 5 
        fiscal years, including the fiscal year in which the amount is 
        made available or appropriated. Any amounts that are unobligated 
        to the project at the end of the 5-fiscal-year period may be 
        used by the Secretary for any purpose under this section.
            ``(2) Use of deobligated amounts.--An amount available under 
        this section that is deobligated may be used for any purpose 
        under this section.

    ``(o) Reports on New Fixed Guideway and Core Capacity Improvement 
Projects.--
            ``(1) Annual report on funding recommendations.--Not later 
        than the first Monday in February of each year, the Secretary 
        shall submit to the Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Appropriations of the Senate and 
        the Committee on Transportation and Infrastructure and the 
        Committee on Appropriations of the House of Representatives a 
        report that includes--
                    ``(A) a proposal of allocations of amounts to be 
                available to finance grants for projects under this 
                section among applicants for these amounts;
                    ``(B) evaluations and ratings, as required under 
                subsections (d), (e), and (i), for each such project 
                that is in project development, engineering, or has 
                received a full funding grant agreement; and
                    ``(C) recommendations of such projects for funding 
                based on the evaluations and ratings and on existing 
                commitments and anticipated funding levels for the next 
                3 fiscal years based on information currently available 
                to the Secretary.
            ``(2) Reports on before and after studies.--Not later than 
        the first Monday in August of each year, the Secretary shall 
        submit to the committees described in paragraph (1) a

[[Page 126 STAT. 674]]

        report containing a summary of the results of any studies 
        conducted under subsection (k)(2)(E).
            ``(3) Biennial gao review.--The Comptroller General of the 
        United States shall--
                    ``(A) conduct a biennial review of--
                          ``(i) the processes and procedures for 
                      evaluating, rating, and recommending new fixed 
                      guideway capital projects and core capacity 
                      improvement projects; and
                          ``(ii) the Secretary's implementation of such 
                      processes and procedures; and
                    ``(B) report to Congress on the results of such 
                review by May 31 of each year.''.

    (b) <<NOTE: 49 USC 5309 note.>> Pilot Program for Expedited Project 
Delivery.--
            (1) Definitions.--In this subsection the following 
        definitions shall apply:
                    (A) Eligible project.--The term ``eligible project'' 
                means a new fixed guideway capital project or a core 
                capacity improvement project, as those terms are defined 
                in section 5309 of title 49, United States Code, as 
                amended by this section, that has not entered into a 
                full funding grant agreement with the Federal Transit 
                Administration before the date of enactment of the 
                Federal Public Transportation Act of 2012.
                    (B) Program.--The term ``program'' means the pilot 
                program for expedited project delivery established under 
                this subsection.
                    (C) Recipient.--The term ``recipient'' means a 
                recipient of funding under chapter 53 of title 49, 
                United States Code.
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Transportation.
            (2) Establishment.--The Secretary shall establish and 
        implement a pilot program to demonstrate whether innovative 
        project development and delivery methods or innovative financing 
        arrangements can expedite project delivery for certain 
        meritorious new fixed guideway capital projects and core 
        capacity improvement projects.
            (3) Limitation on number of projects.--The Secretary shall 
        select 3 eligible projects to participate in the program, of 
        which--
                    (A) at least 1 shall be an eligible project 
                requesting more than $100,000,000 in Federal financial 
                assistance under section 5309 of title 49, United States 
                Code; and
                    (B) at least 1 shall be an eligible project 
                requesting less than $100,000,000 in Federal financial 
                assistance under section 5309 of title 49, United States 
                Code.
            (4) Government share.--The Government share of the total 
        cost of an eligible project that participates in the program may 
        not exceed 50 percent.
            (5) Eligibility.--A recipient that desires to participate in 
        the program shall submit to the Secretary an application that 
        contains, at a minimum--
                    (A) identification of an eligible project;
                    (B) a schedule and finance plan for the construction 
                and operation of the eligible project;

[[Page 126 STAT. 675]]

                    (C) an analysis of the efficiencies of the proposed 
                project development and delivery methods or innovative 
                financing arrangement for the eligible project; and
                    (D) a certification that the recipient's existing 
                public transportation system is in a state of good 
                repair.
            (6) Selection criteria.--The Secretary may award a full 
        funding grant agreement under this subsection if the Secretary 
        determines that--
                    (A) the recipient has completed planning and the 
                activities required under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
                    (B) the recipient has the necessary legal, 
                financial, and technical capacity to carry out the 
                eligible project.
            (7) Before and after study and report.--
                    (A) Study required.--A full funding grant agreement 
                under this paragraph shall require a recipient to 
                conduct a study that--
                          (i) describes and analyzes the impacts of the 
                      eligible project on public transportation services 
                      and public transportation ridership;
                          (ii) describes and analyzes the consistency of 
                      predicted and actual benefits and costs of the 
                      innovative project development and delivery 
                      methods or innovative financing for the eligible 
                      project; and
                          (iii) identifies reasons for any differences 
                      between predicted and actual outcomes for the 
                      eligible project.
                    (B) Submission of report.--Not later than 9 months 
                after an eligible project selected to participate in the 
                program begins revenue operations, the recipient shall 
                submit to the Secretary a report on the results of the 
                study under subparagraph (A).
SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES.

    Section 5310 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5310. Formula grants for the enhanced mobility of seniors 
                  and individuals with disabilities

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Recipient.--The term `recipient' means a designated 
        recipient or a State that receives a grant under this section 
        directly.
            ``(2) Subrecipient.--The term `subrecipient' means a State 
        or local governmental authority, a private nonprofit 
        organization, or an operator of public transportation that 
        receives a grant under this section indirectly through a 
        recipient.

    ``(b) General Authority.--
            ``(1) Grants.--The Secretary may make grants under this 
        section to recipients for--
                    ``(A) public transportation projects planned, 
                designed, and carried out to meet the special needs of 
                seniors and individuals with disabilities when public 
                transportation is insufficient, inappropriate, or 
                unavailable;

[[Page 126 STAT. 676]]

                    ``(B) public transportation projects that exceed the 
                requirements of the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.);
                    ``(C) public transportation projects that improve 
                access to fixed route service and decrease reliance by 
                individuals with disabilities on complementary 
                paratransit; and
                    ``(D) alternatives to public transportation that 
                assist seniors and individuals with disabilities with 
                transportation.
            ``(2) Limitations for capital projects.--
                    ``(A) Amount available.--The amount available for 
                capital projects under paragraph (1)(A) shall be not 
                less than 55 percent of the funds apportioned to the 
                recipient under this section.
                    ``(B) Allocation to subrecipients.--A recipient of a 
                grant under paragraph (1)(A) may allocate the amounts 
                provided under the grant to--
                          ``(i) a private nonprofit organization; or
                          ``(ii) a State or local governmental authority 
                      that--
                                    ``(I) is approved by a State to 
                                coordinate services for seniors and 
                                individuals with disabilities; or
                                    ``(II) certifies that there are no 
                                private nonprofit organizations readily 
                                available in the area to provide the 
                                services described in paragraph (1)(A).
            ``(3) Administrative expenses.--A recipient may use not more 
        than 10 percent of the amounts apportioned to the recipient 
        under this section to administer, plan, and provide technical 
        assistance for a project funded under this section.
            ``(4) Eligible capital expenses.--The acquisition of public 
        transportation services is an eligible capital expense under 
        this section.
            ``(5) Coordination.--
                    ``(A) Department of transportation.--To the maximum 
                extent feasible, the Secretary shall coordinate 
                activities under this section with related activities 
                under other Federal departments and agencies.
                    ``(B) Other federal agencies and nonprofit 
                organizations.--A State or local governmental authority 
                or nonprofit organization that receives assistance from 
                Government sources (other than the Department of 
                Transportation) for nonemergency transportation services 
                shall--
                          ``(i) participate and coordinate with 
                      recipients of assistance under this chapter in the 
                      design and delivery of transportation services; 
                      and
                          ``(ii) participate in the planning for the 
                      transportation services described in clause (i).
            ``(6) Program of projects.--
                    ``(A) In general.--Amounts made available to carry 
                out this section may be used for transportation projects 
                to assist in providing transportation services for 
                seniors and individuals with disabilities, if such 
                transportation projects are included in a program of 
                projects.
                    ``(B) Submission.--A recipient shall annually submit 
                a program of projects to the Secretary.

[[Page 126 STAT. 677]]

                    ``(C) Assurance.--The program of projects submitted 
                under subparagraph (B) shall contain an assurance that 
                the program provides for the maximum feasible 
                coordination of transportation services assisted under 
                this section with transportation services assisted by 
                other Government sources.
            ``(7) Meal delivery for homebound individuals.--A public 
        transportation service provider that receives assistance under 
        this section or section 5311(c) may coordinate and assist in 
        regularly providing meal delivery service for homebound 
        individuals, if the delivery service does not conflict with 
        providing public transportation service or reduce service to 
        public transportation passengers.

    ``(c) Apportionment and Transfers.--
            ``(1) Formula.--The Secretary shall apportion amounts made 
        available to carry out this section as follows:
                    ``(A) Large urbanized areas.--Sixty percent of the 
                funds shall be apportioned among designated recipients 
                for urbanized areas with a population of 200,000 or more 
                individuals, as determined by the Bureau of the Census, 
                in the ratio that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in each such urbanized area; 
                      bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in all such urbanized areas.
                    ``(B) Small urbanized areas.--Twenty percent of the 
                funds shall be apportioned among the States in the ratio 
                that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in urbanized areas with a 
                      population of fewer than 200,000 individuals, as 
                      determined by the Bureau of the Census, in each 
                      State; bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in urbanized areas with a 
                      population of fewer than 200,000 individuals, as 
                      determined by the Bureau of the Census, in all 
                      States.
                    ``(C) Rural areas.--Twenty percent of the funds 
                shall be apportioned among the States in the ratio 
                that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in rural areas in each State; 
                      bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in rural areas in all States.
            ``(2) Areas served by projects.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B)--
                          ``(i) funds apportioned under paragraph (1)(A) 
                      shall be used for projects serving urbanized areas 
                      with a population of 200,000 or more individuals, 
                      as determined by the Bureau of the Census;
                          ``(ii) funds apportioned under paragraph 
                      (1)(B) shall be used for projects serving 
                      urbanized areas with a population of fewer than 
                      200,000 individuals, as determined by the Bureau 
                      of the Census; and
                          ``(iii) funds apportioned under paragraph 
                      (1)(C) shall be used for projects serving rural 
                      areas.

[[Page 126 STAT. 678]]

                    ``(B) Exceptions.--A State may use funds apportioned 
                to the State under subparagraph (B) or (C) of paragraph 
                (1)--
                          ``(i) for a project serving an area other than 
                      an area specified in subparagraph (A)(ii) or 
                      (A)(iii), as the case may be, if the Governor of 
                      the State certifies that all of the objectives of 
                      this section are being met in the area specified 
                      in subparagraph (A)(ii) or (A)(iii); or
                          ``(ii) for a project anywhere in the State, if 
                      the State has established a statewide program for 
                      meeting the objectives of this section.
                    ``(C) Limited to eligible projects.--Any funds 
                transferred pursuant to subparagraph (B) shall be made 
                available only for eligible projects selected under this 
                section.
                    ``(D) Consultation.--A recipient may transfer an 
                amount under subparagraph (B) only after consulting with 
                responsible local officials, publicly owned operators of 
                public transportation, and nonprofit providers in the 
                area for which the amount was originally apportioned.

    ``(d) Government Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project under 
        this section shall be in an amount equal to 80 percent of the 
        net capital costs of the project, as determined by the 
        Secretary.
            ``(2) Operating assistance.--A grant made under this section 
        for operating assistance may not exceed an amount equal to 50 
        percent of the net operating costs of the project, as determined 
        by the Secretary.
            ``(3) Remainder of net costs.--The remainder of the net 
        costs of a project carried out under this section--
                    ``(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital; and
                    ``(B) may be derived from amounts appropriated or 
                otherwise made available--
                          ``(i) to a department or agency of the 
                      Government (other than the Department of 
                      Transportation) that are eligible to be expended 
                      for transportation; or
                          ``(ii) to carry out the Federal lands highways 
                      program under section 204 of title 23.
            ``(4) Use of certain funds.--For purposes of paragraph 
        (3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of 
        the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use 
        of grant funds for matching requirements shall not apply to 
        Federal or State funds to be used for transportation purposes.

    ``(e) Grant Requirements.--
            ``(1) In general.--A grant under this section shall be 
        subject to the same requirements as a grant under section 5307, 
        to the extent the Secretary determines appropriate.
            ``(2) Certification requirements.--
                    ``(A) Project selection and plan development.--
                Before receiving a grant under this section, each 
                recipient shall certify that--

[[Page 126 STAT. 679]]

                          ``(i) the projects selected by the recipient 
                      are included in a locally developed, coordinated 
                      public transit-human services transportation plan;
                          ``(ii) the plan described in clause (i) was 
                      developed and approved through a process that 
                      included participation by seniors, individuals 
                      with disabilities, representatives of public, 
                      private, and nonprofit transportation and human 
                      services providers, and other members of the 
                      public; and
                          ``(iii) to the maximum extent feasible, the 
                      services funded under this section will be 
                      coordinated with transportation services assisted 
                      by other Federal departments and agencies, 
                      including any transportation activities carried 
                      out by a recipient of a grant from the Department 
                      of Health and Human Services.
                    ``(B) Allocations to subrecipients.--If a recipient 
                allocates funds received under this section to 
                subrecipients, the recipient shall certify that the 
                funds are allocated on a fair and equitable basis.

    ``(f) Competitive Process for Grants to Subrecipients.--
            ``(1) Areawide solicitations.--A recipient of funds 
        apportioned under subsection (c)(1)(A) may conduct, in 
        cooperation with the appropriate metropolitan planning 
        organization, an areawide solicitation for applications for 
        grants under this section.
            ``(2) Statewide solicitations.--A recipient of funds 
        apportioned under subparagraph (B) or (C) of subsection (c)(1) 
        may conduct a statewide solicitation for applications for grants 
        under this section.
            ``(3) Application.--If the recipient elects to engage in a 
        competitive process, a recipient or subrecipient seeking to 
        receive a grant from funds apportioned under subsection (c) 
        shall submit to the recipient making the election an application 
        in such form and in accordance with such requirements as the 
        recipient making the election shall establish.

    ``(g) Transfers of Facilities and Equipment.--A recipient may 
transfer a facility or equipment acquired using a grant under this 
section to any other recipient eligible to receive assistance under this 
chapter, if--
            ``(1) the recipient in possession of the facility or 
        equipment consents to the transfer; and
            ``(2) the facility or equipment will continue to be used as 
        required under this section.

    ``(h) Performance Measures.--
            ``(1) <<NOTE: Deadline. Reports.>> In general.--Not later 
        than 1 year after the date of enactment of the Federal Public 
        Transportation Act of 2012, the Secretary shall submit a report 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives making recommendations on the 
        establishment of performance measures for grants under this 
        section. Such report shall be developed in consultation with 
        national nonprofit organizations that provide technical 
        assistance and advocacy on issues related to transportation 
        services for seniors and individuals with disabilities.

[[Page 126 STAT. 680]]

            ``(2) Measures.--The performance measures to be considered 
        in the report under paragraph (1) shall require the collection 
        of quantitative and qualitative information, as available, 
        concerning--
                    ``(A) modifications to the geographic coverage of 
                transportation service, the quality of transportation 
                service, or service times that increase the availability 
                of transportation services for seniors and individuals 
                with disabilities;
                    ``(B) ridership;
                    ``(C) accessibility improvements; and
                    ``(D) other measures, as the Secretary determines is 
                appropriate.''.
SEC. 20010. FORMULA GRANTS FOR RURAL AREAS.

    Section 5311 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5311. Formula grants for rural areas

    ``(a) Definitions.--As used in this section, the following 
definitions shall apply:
            ``(1) Recipient.--The term `recipient' means a State or 
        Indian tribe that receives a Federal transit program grant 
        directly from the Government.
            ``(2) Subrecipient.--The term `subrecipient' means a State 
        or local governmental authority, a nonprofit organization, or an 
        operator of public transportation or intercity bus service that 
        receives Federal transit program grant funds indirectly through 
        a recipient.

    ``(b) General Authority.--
            ``(1) Grants authorized.--Except as provided by paragraph 
        (2), the Secretary may award grants under this section to 
        recipients located in rural areas for--
                    ``(A) planning, provided that a grant under this 
                section for planning activities shall be in addition to 
                funding awarded to a State under section 5305 for 
                planning activities that are directed specifically at 
                the needs of rural areas in the State;
                    ``(B) public transportation capital projects;
                    ``(C) operating costs of equipment and facilities 
                for use in public transportation;
                    ``(D) job access and reverse commute projects; and
                    ``(E) the acquisition of public transportation 
                services, including service agreements with private 
                providers of public transportation service.
            ``(2) State program.--
                    ``(A) In general.--A project eligible for a grant 
                under this section shall be included in a State program 
                for public transportation service projects, including 
                agreements with private providers of public 
                transportation service.
                    ``(B) Submission to secretary.--Each State shall 
                submit to the Secretary annually the program described 
                in subparagraph (A).
                    ``(C) Approval.--The Secretary may not approve the 
                program unless the Secretary determines that--
                          ``(i) the program provides a fair distribution 
                      of amounts in the State, including Indian 
                      reservations; and

[[Page 126 STAT. 681]]

                          ``(ii) the program provides the maximum 
                      feasible coordination of public transportation 
                      service assisted under this section with 
                      transportation service assisted by other Federal 
                      sources.
            ``(3) Rural transportation assistance program.--
                    ``(A) In general.--The Secretary shall carry out a 
                rural transportation assistance program in rural areas.
                    ``(B) Grants and contracts.--In carrying out this 
                paragraph, the Secretary may use not more than 2 percent 
                of the amount made available under section 5338(a)(2)(E) 
                to make grants and contracts for transportation 
                research, technical assistance, training, and related 
                support services in rural areas.
                    ``(C) Projects of a national scope.--Not more than 
                15 percent of the amounts available under subparagraph 
                (B) may be used by the Secretary to carry out 
                competitively selected projects of a national scope, 
                with the remaining balance provided to the States.
            ``(4) Data collection.--Each recipient under this section 
        shall submit an annual report to the Secretary containing 
        information on capital investment, operations, and service 
        provided with funds received under this section, including--
                    ``(A) total annual revenue;
                    ``(B) sources of revenue;
                    ``(C) total annual operating costs;
                    ``(D) total annual capital costs;
                    ``(E) fleet size and type, and related facilities;
                    ``(F) vehicle revenue miles; and
                    ``(G) ridership.

    ``(c) Apportionments.--
            ``(1) Public transportation on indian reservations.--Of the 
        amounts made available or appropriated for each fiscal year 
        pursuant to section 5338(a)(2)(E) to carry out this paragraph, 
        the following amounts shall be apportioned each fiscal year for 
        grants to Indian tribes for any purpose eligible under this 
        section, under such terms and conditions as may be established 
        by the Secretary:
                    ``(A) $5,000,000 shall be distributed on a 
                competitive basis by the Secretary.
                    ``(B) $25,000,000 shall be apportioned as formula 
                grants, as provided in subsection (j).
            ``(2) Appalachian development public transportation 
        assistance program.--
                    ``(A) Definitions.--In this paragraph--
                          ``(i) the term `Appalachian region' has the 
                      same meaning as in section 14102 of title 40; and
                          ``(ii) the term `eligible recipient' means a 
                      State that participates in a program established 
                      under subtitle IV of title 40.
                    ``(B) In general.--The Secretary shall carry out a 
                public transportation assistance program in the 
                Appalachian region.
                    ``(C) Apportionment.--Of amounts made available or 
                appropriated for each fiscal year under section 
                5338(a)(2)(E) to carry out this paragraph, the Secretary 
                shall apportion funds to eligible recipients for any 
                purpose eligible under this section, based on the 
                guidelines established under

[[Page 126 STAT. 682]]

                section 9.5(b) of the Appalachian Regional Commission 
                Code.
                    ``(D) Special rule.--An eligible recipient may use 
                amounts that cannot be used for operating expenses under 
                this paragraph for a highway project if--
                          ``(i) that use is approved, in writing, by the 
                      eligible recipient after appropriate notice and an 
                      opportunity for comment and appeal are provided to 
                      affected public transportation providers; and
                          ``(ii) the eligible recipient, in approving 
                      the use of amounts under this subparagraph, 
                      determines that the local transit needs are being 
                      addressed.
            ``(3) Remaining amounts.--
                    ``(A) In general.--The amounts made available or 
                appropriated for each fiscal year pursuant to section 
                5338(a)(2)(E) that are not apportioned under paragraph 
                (1) or (2) shall be apportioned in accordance with this 
                paragraph.
                    ``(B) Apportionment based on land area and 
                population in nonurbanized areas.--
                          ``(i) In general.--83.15 percent of the amount 
                      described in subparagraph (A) shall be apportioned 
                      to the States in accordance with this 
                      subparagraph.
                          ``(ii) Land area.--
                                    ``(I) In general.--Subject to 
                                subclause (II), each State shall receive 
                                an amount that is equal to 20 percent of 
                                the amount apportioned under clause (i), 
                                multiplied by the ratio of the land area 
                                in rural areas in that State and divided 
                                by the land area in all rural areas in 
                                the United States, as shown by the most 
                                recent decennial census of population.
                                    ``(II) Maximum apportionment.--No 
                                State shall receive more than 5 percent 
                                of the amount apportioned under 
                                subclause (I).
                          ``(iii) Population.--Each State shall receive 
                      an amount equal to 80 percent of the amount 
                      apportioned under clause (i), multiplied by the 
                      ratio of the population of rural areas in that 
                      State and divided by the population of all rural 
                      areas in the United States, as shown by the most 
                      recent decennial census of population.
                    ``(C) Apportionment based on land area, vehicle 
                revenue miles, and low-income individuals in 
                nonurbanized areas.--
                          ``(i) In general.--16.85 percent of the amount 
                      described in subparagraph (A) shall be apportioned 
                      to the States in accordance with this 
                      subparagraph.
                          ``(ii) Land area.--Subject to clause (v), each 
                      State shall receive an amount that is equal to 
                      29.68 percent of the amount apportioned under 
                      clause (i), multiplied by the ratio of the land 
                      area in rural areas in that State and divided by 
                      the land area in all rural areas in the United 
                      States, as shown by the most recent decennial 
                      census of population.
                          ``(iii) Vehicle revenue miles.--Subject to 
                      clause (v), each State shall receive an amount 
                      that is equal

[[Page 126 STAT. 683]]

                      to 29.68 percent of the amount apportioned under 
                      clause (i), multiplied by the ratio of vehicle 
                      revenue miles in rural areas in that State and 
                      divided by the vehicle revenue miles in all rural 
                      areas in the United States, as determined by 
                      national transit database reporting.
                          ``(iv) Low-income individuals.--Each State 
                      shall receive an amount that is equal to 40.64 
                      percent of the amount apportioned under clause 
                      (i), multiplied by the ratio of low-income 
                      individuals in rural areas in that State and 
                      divided by the number of low-income individuals in 
                      all rural areas in the United States, as shown by 
                      the Bureau of the Census.
                          ``(v) Maximum apportionment.--No State shall 
                      receive--
                                    ``(I) more than 5 percent of the 
                                amount apportioned under clause (ii); or
                                    ``(II) more than 5 percent of the 
                                amount apportioned under clause (iii).

    ``(d) Use for Local Transportation Service.--A State may use an 
amount apportioned under this section for a project included in a 
program under subsection (b) of this section and eligible for assistance 
under this chapter if the project will provide local transportation 
service, as defined by the Secretary of Transportation, in a rural area.
    ``(e) Use for Administration, Planning, and Technical Assistance.--
The Secretary may allow a State to use not more than 10 percent of the 
amount apportioned under this section to administer this section and 
provide technical assistance to a subrecipient, including project 
planning, program and management development, coordination of public 
transportation programs, and research the State considers appropriate to 
promote effective delivery of public transportation to a rural area.
    ``(f) Intercity Bus Transportation.--
            ``(1) In general.--A State shall expend at least 15 percent 
        of the amount made available in each fiscal year to carry out a 
        program to develop and support intercity bus transportation. 
        Eligible activities under the program include--
                    ``(A) planning and marketing for intercity bus 
                transportation;
                    ``(B) capital grants for intercity bus facilities;
                    ``(C) joint-use facilities;
                    ``(D) operating grants through purchase-of-service 
                agreements, user-side subsidies, and demonstration 
                projects; and
                    ``(E) coordinating rural connections between small 
                public transportation operations and intercity bus 
                carriers.
            ``(2) Certification.--A State does not have to comply with 
        paragraph (1) of this subsection in a fiscal year in which the 
        Governor of the State certifies to the Secretary, after 
        consultation with affected intercity bus service providers, that 
        the intercity bus service needs of the State are being met 
        adequately.

    ``(g) Government Share of Costs.--
            ``(1) Capital projects.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant awarded under this section for 
                a capital project or project administrative expenses 
                shall be for 80 percent

[[Page 126 STAT. 684]]

                of the net costs of the project, as determined by the 
                Secretary.
                    ``(B) Exception.--A State described in section 
                120(b) of title 23 shall receive a Government share of 
                the net costs in accordance with the formula under that 
                section.
            ``(2) Operating assistance.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant made under this section for 
                operating assistance may not exceed 50 percent of the 
                net operating costs of the project, as determined by the 
                Secretary.
                    ``(B) Exception.--A State described in section 
                120(b) of title 23 shall receive a Government share of 
                the net operating costs equal to 62.5 percent of the 
                Government share provided for under paragraph (1)(B).
            ``(3) Remainder.--The remainder of net project costs--
                    ``(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital;
                    ``(B) may be derived from amounts appropriated or 
                otherwise made available to a department or agency of 
                the Government (other than the Department of 
                Transportation) that are eligible to be expended for 
                transportation;
                    ``(C) notwithstanding subparagraph (B), may be 
                derived from amounts made available to carry out the 
                Federal lands highway program established by section 204 
                of title 23; and
                    ``(D) in the case of an intercity bus project that 
                includes both feeder service and an unsubsidized segment 
                of intercity bus service to which the feeder service 
                connects, may be derived from the costs of a private 
                operator for the unsubsidized segment of intercity bus 
                service as an in-kind match for the operating costs of 
                connecting rural intercity bus feeder service funded 
                under subsection (f), if the private operator agrees in 
                writing to the use of the costs of the private operator 
                for the unsubsidized segment of intercity bus service as 
                an in-kind match.
            ``(4) Use of certain funds.--For purposes of paragraph 
        (3)(B), the prohibitions on the use of funds for matching 
        requirements under section 403(a)(5)(C)(vii) of the Social 
        Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
        Federal or State funds to be used for transportation purposes.
            ``(5) Limitation on operating assistance.--A State carrying 
        out a program of operating assistance under this section may not 
        limit the level or extent of use of the Government grant for the 
        payment of operating expenses.

    ``(h) Transfer of Facilities and Equipment.--With the consent of the 
recipient currently having a facility or equipment acquired with 
assistance under this section, a State may transfer the facility or 
equipment to any recipient eligible to receive assistance under this 
chapter if the facility or equipment will continue to be used as 
required under this section.
    ``(i) Relationship to Other Laws.--

[[Page 126 STAT. 685]]

            ``(1) <<NOTE: Applicability.>> In general.--Section 5333(b) 
        applies to this section if the Secretary of Labor utilizes a 
        special warranty that provides a fair and equitable arrangement 
        to protect the interests of employees.
            ``(2) Rule of construction.--This subsection does not affect 
        or discharge a responsibility of the Secretary of Transportation 
        under a law of the United States.

    ``(j) Formula Grants for Public Transportation on Indian 
Reservations.--
            ``(1) Apportionment.--
                    ``(A) In general.--Of the amounts described in 
                subsection (c)(1)(B)--
                          ``(i) 50 percent of the total amount shall be 
                      apportioned so that each Indian tribe providing 
                      public transportation service shall receive an 
                      amount equal to the total amount apportioned under 
                      this clause multiplied by the ratio of the number 
                      of vehicle revenue miles provided by an Indian 
                      tribe divided by the total number of vehicle 
                      revenue miles provided by all Indian tribes, as 
                      reported to the Secretary;
                          ``(ii) 25 percent of the total amount shall be 
                      apportioned equally among each Indian tribe 
                      providing at least 200,000 vehicle revenue miles 
                      of public transportation service annually, as 
                      reported to the Secretary; and
                          ``(iii) 25 percent of the total amount shall 
                      be apportioned among each Indian tribe providing 
                      public transportation on tribal lands (as defined 
                      by the Bureau of the Census) on which more than 
                      1,000 low-income individuals reside (as determined 
                      by the Bureau of the Census) so that each Indian 
                      tribe shall receive an amount equal to the total 
                      amount apportioned under this clause multiplied by 
                      the ratio of the number of low-income individuals 
                      residing on an Indian tribe's lands divided by the 
                      total number of low-income individuals on tribal 
                      lands on which more than 1,000 low-income 
                      individuals reside.
                    ``(B) Limitation.--No recipient shall receive more 
                than $300,000 of the amounts apportioned under 
                subparagraph (A)(iii) in a fiscal year.
                    ``(C) Remaining amounts.--Of the amounts made 
                available under subparagraph (A)(iii), any amounts not 
                apportioned under that subparagraph shall be allocated 
                among Indian tribes receiving less than $300,000 in a 
                fiscal year according to the formula specified in that 
                clause.
                    ``(D) Low-income individuals.--For purposes of 
                subparagraph (A)(iii), the term `low-income individual' 
                means an individual whose family income is at or below 
                100 percent of the poverty line, as that term is defined 
                in section 673(2) of the Community Services Block Grant 
                Act (42 U.S.C. 9902(2)), including any revision required 
                by that section, for a family of the size involved.
            ``(2) Non-tribal service providers.--A recipient that is an 
        Indian tribe may use funds apportioned under this subsection to 
        finance public transportation services provided by a non-tribal 
        provider of public transportation that connects residents of 
        tribal lands with surrounding communities,

[[Page 126 STAT. 686]]

        improves access to employment or healthcare, or otherwise 
        addresses the mobility needs of tribal members.''.
SEC. 20011. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT 
                            PROJECTS.

    Section 5312 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5312. Research, development, demonstration, and deployment 
                  projects

    ``(a) Research, Development, Demonstration, and Deployment 
Projects.--
            ``(1) In general.--The Secretary may make grants and enter 
        into contracts, cooperative agreements, and other agreements for 
        research, development, demonstration, and deployment projects, 
        and evaluation of research and technology of national 
        significance to public transportation, that the Secretary 
        determines will improve public transportation.
            ``(2) Agreements.--In order to carry out paragraph (1), the 
        Secretary may make grants to and enter into contracts, 
        cooperative agreements, and other agreements with--
                    ``(A) departments, agencies, and instrumentalities 
                of the Government, including Federal laboratories;
                    ``(B) State and local governmental entities;
                    ``(C) providers of public transportation;
                    ``(D) private or non-profit organizations;
                    ``(E) institutions of higher education; and
                    ``(F) technical and community colleges.
            ``(3) Application.--
                    ``(A) In general.--To receive a grant, contract, 
                cooperative agreement, or other agreement under this 
                section, an entity described in paragraph (2) shall 
                submit an application to the Secretary.
                    ``(B) Form and contents.--An application under 
                subparagraph (A) shall be in such form and contain such 
                information as the Secretary may require, including--
                          ``(i) a statement of purpose detailing the 
                      need being addressed;
                          ``(ii) the short- and long-term goals of the 
                      project, including opportunities for future 
                      innovation and development, the potential for 
                      deployment, and benefits to riders and public 
                      transportation; and
                          ``(iii) the short- and long-term funding 
                      requirements to complete the project and any 
                      future objectives of the project.

    ``(b) Research.--
            ``(1) In general.--The Secretary may make a grant to or 
        enter into a contract, cooperative agreement, or other agreement 
        under this section with an entity described in subsection (a)(2) 
        to carry out a public transportation research project that has 
        as its ultimate goal the development and deployment of new and 
        innovative ideas, practices, and approaches.
            ``(2) Project eligibility.--A public transportation research 
        project that receives assistance under paragraph (1) shall focus 
        on--
                    ``(A) providing more effective and efficient public 
                transportation service, including services to--

[[Page 126 STAT. 687]]

                          ``(i) seniors;
                          ``(ii) individuals with disabilities; and
                          ``(iii) low-income individuals;
                    ``(B) mobility management and improvements and 
                travel management systems;
                    ``(C) data and communication system advancements;
                    ``(D) system capacity, including--
                          ``(i) train control;
                          ``(ii) capacity improvements; and
                          ``(iii) performance management;
                    ``(E) capital and operating efficiencies;
                    ``(F) planning and forecasting modeling and 
                simulation;
                    ``(G) advanced vehicle design;
                    ``(H) advancements in vehicle technology;
                    ``(I) asset maintenance and repair systems 
                advancement;
                    ``(J) construction and project management;
                    ``(K) alternative fuels;
                    ``(L) the environment and energy efficiency;
                    ``(M) safety improvements; or
                    ``(N) any other area that the Secretary determines 
                is important to advance the interests of public 
                transportation.

    ``(c) Innovation and Development.--
            ``(1) In general.--The Secretary may make a grant to or 
        enter into a contract, cooperative agreement, or other agreement 
        under this section with an entity described in subsection (a)(2) 
        to carry out a public transportation innovation and development 
        project that seeks to improve public transportation systems 
        nationwide in order to provide more efficient and effective 
        delivery of public transportation services, including through 
        technology and technological capacity improvements.
            ``(2) Project eligibility.--A public transportation 
        innovation and development project that receives assistance 
        under paragraph (1) shall focus on--
                    ``(A) the development of public transportation 
                research projects that received assistance under 
                subsection (b) that the Secretary determines were 
                successful;
                    ``(B) planning and forecasting modeling and 
                simulation;
                    ``(C) capital and operating efficiencies;
                    ``(D) advanced vehicle design;
                    ``(E) advancements in vehicle technology;
                    ``(F) the environment and energy efficiency;
                    ``(G) system capacity, including train control and 
                capacity improvements; or
                    ``(H) any other area that the Secretary determines 
                is important to advance the interests of public 
                transportation.

    ``(d) Demonstration, Deployment, and Evaluation.--
            ``(1) In general.--The Secretary may, under terms and 
        conditions that the Secretary prescribes, make a grant to or 
        enter into a contract, cooperative agreement, or other agreement 
        with an entity described in paragraph (2) to promote the early 
        deployment and demonstration of innovation in public 
        transportation that has broad applicability.
            ``(2) Participants.--An entity described in this paragraph 
        is--
                    ``(A) an entity described in subsection (a)(2); or

[[Page 126 STAT. 688]]

                    ``(B) a consortium of entities described in 
                subsection (a)(2), including a provider of public 
                transportation, that will share the costs, risks, and 
                rewards of early deployment and demonstration of 
                innovation.
            ``(3) Project eligibility.--A project that receives 
        assistance under paragraph (1) shall seek to build on successful 
        research, innovation, and development efforts to facilitate--
                    ``(A) the deployment of research and technology 
                development resulting from private efforts or Federally 
                funded efforts; and
                    ``(B) the implementation of research and technology 
                development to advance the interests of public 
                transportation.
            ``(4) <<NOTE: Deadline.>> Evaluation.--Not later than 2 
        years after the date on which a project receives assistance 
        under paragraph (1), the Secretary shall conduct a comprehensive 
        evaluation of the success or failure of the projects funded 
        under this subsection and any plan for broad-based 
        implementation of the innovation promoted by successful 
        projects.
            ``(5) Low or no emission vehicle deployment.--
                    ``(A) Definitions.--In this paragraph, the following 
                definitions shall apply:
                          ``(i) Eligible area.--The term `eligible area' 
                      means an area that is--
                                    ``(I) designated as a nonattainment 
                                area for ozone or carbon monoxide under 
                                section 107(d) of the Clean Air Act (42 
                                U.S.C. 7407(d)); or
                                    ``(II) a maintenance area, as 
                                defined in section 5303, for ozone or 
                                carbon monoxide.
                          ``(ii) Eligible project.--The term `eligible 
                      project' means a project or program of projects in 
                      an eligible area for--
                                    ``(I) acquiring or leasing low or no 
                                emission vehicles;
                                    ``(II) constructing or leasing 
                                facilities and related equipment for low 
                                or no emission vehicles;
                                    ``(III) constructing new public 
                                transportation facilities to accommodate 
                                low or no emission vehicles; or
                                    ``(IV) rehabilitating or improving 
                                existing public transportation 
                                facilities to accommodate low or no 
                                emission vehicles.
                          ``(iii) Direct carbon emissions.--The term 
                      `direct carbon emissions' means the quantity of 
                      direct greenhouse gas emissions from a vehicle, as 
                      determined by the Administrator of the 
                      Environmental Protection Agency.
                          ``(iv) Low or no emission bus.--The term `low 
                      or no emission bus' means a bus that is a low or 
                      no emission vehicle.
                          ``(v) Low or no emission vehicle.--The term 
                      `low or no emission vehicle' means--
                                    ``(I) a passenger vehicle used to 
                                provide public transportation that the 
                                Administrator of the Environmental 
                                Protection Agency has certified 
                                sufficiently reduces energy consumption 
                                or reduces

[[Page 126 STAT. 689]]

                                harmful emissions, including direct 
                                carbon emissions, when compared to a 
                                comparable standard vehicle; or
                                    ``(II) a zero emission bus used to 
                                provide public transportation.
                          ``(vi) Recipient.--The term `recipient' 
                      means--
                                    ``(I) for an eligible area that is 
                                an urbanized area with a population of 
                                fewer than 200,000 individuals, as 
                                determined by the Bureau of the Census, 
                                the State in which the eligible area is 
                                located; and
                                    ``(II) for an eligible area not 
                                described in subparagraph (A), the 
                                designated recipient for the eligible 
                                area.
                          ``(vii) Zero emission bus.--The term `zero 
                      emission bus' means a low or no emission bus that 
                      produces no carbon or particulate matter.
                    ``(B) Authority.--The Secretary may make grants to 
                recipients to finance eligible projects under this 
                paragraph.
                    ``(C) Grant requirements.--
                          ``(i) In general.--A grant under this 
                      paragraph shall be subject to the requirements of 
                      section 5307.
                          ``(ii) Government share of costs for certain 
                      projects.-- <<NOTE: Applicability.>> Section 
                      5323(j) applies to projects carried out under this 
                      paragraph, unless the grant recipient requests a 
                      lower grant percentage.
                          ``(iii) Combination of funding sources.--
                                    ``(I) Combination permitted.--A 
                                project carried out under this paragraph 
                                may receive funding under section 5307, 
                                or any other provision of law.
                                    ``(II) Government share.--Nothing in 
                                this clause may be construed to alter 
                                the Government share required under this 
                                section, section 5307, or any other 
                                provision of law.
                    ``(D) Minimum amounts.--Of amounts made available by 
                or appropriated under section 5338(b) in each fiscal 
                year to carry out this paragraph--
                          ``(i) not less than 65 percent shall be made 
                      available to fund eligible projects relating to 
                      low or no emission buses; and
                          ``(ii) not less than 10 percent shall be made 
                      available for eligible projects relating to 
                      facilities and related equipment for low or no 
                      emission buses.
                    ``(E) Competitive process.--The Secretary shall 
                solicit grant applications and make grants for eligible 
                projects on a competitive basis.
                    ``(F) Priority consideration.--In making grants 
                under this paragraph, the Secretary shall give priority 
                to projects relating to low or no emission buses that 
                make greater reductions in energy consumption and 
                harmful emissions, including direct carbon emissions, 
                than comparable standard buses or other low or no 
                emission buses.
                    ``(G) Availability of funds.--Any amounts made 
                available or appropriated to carry out this paragraph--
                          ``(i) shall remain available to an eligible 
                      project for 2 years after the fiscal year for 
                      which the amount is made available or 
                      appropriated; and

[[Page 126 STAT. 690]]

                          ``(ii) that remain unobligated at the end of 
                      the period described in clause (i) shall be added 
                      to the amount made available to an eligible 
                      project in the following fiscal year.

    ``(e) Annual Report on Research.--Not later than the first Monday in 
February of each year, the Secretary shall submit to the Committee on 
Banking, Housing, and Urban Affairs and the Committee on Appropriations 
of the Senate and the Committee on Transportation and Infrastructure, 
the Committee on Science, Space, and Technology, and the Committee on 
Appropriations of the House of Representatives a report that includes--
            ``(1) a description of each project that received assistance 
        under this section during the preceding fiscal year;
            ``(2) an evaluation of each project described in paragraph 
        (1), including any evaluation conducted under subsection (d)(4) 
        for the preceding fiscal year; and
            ``(3) a proposal for allocations of amounts for assistance 
        under this section for the subsequent fiscal year.

    ``(f) Government Share of Costs.--
            ``(1) In general.--The Government share of the cost of a 
        project carried out under this section shall not exceed 80 
        percent.
            ``(2) Non-government share.--The non-Government share of the 
        cost of a project carried out under this section may be derived 
        from in-kind contributions.
            ``(3) Financial benefit.--If the Secretary determines that 
        there would be a clear and direct financial benefit to an entity 
        under a grant, contract, cooperative agreement, or other 
        agreement under this section, the Secretary shall establish a 
        Government share of the costs of the project to be carried out 
        under the grant, contract, cooperative agreement, or other 
        agreement that is consistent with the benefit.''.
SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.

    Section 5314 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5314. Technical assistance and standards development

    ``(a) Technical Assistance and Standards Development.--
            ``(1) In general.--The Secretary may make grants and enter 
        into contracts, cooperative agreements, and other agreements 
        (including agreements with departments, agencies, and 
        instrumentalities of the Government) to carry out activities 
        that the Secretary determines will assist recipients of 
        assistance under this chapter to--
                    ``(A) more effectively and efficiently provide 
                public transportation service;
                    ``(B) administer funds received under this chapter 
                in compliance with Federal law; and
                    ``(C) improve public transportation.
            ``(2) Eligible activities.--The activities carried out under 
        paragraph (1) may include--
                    ``(A) technical assistance; and
                    ``(B) the development of voluntary and consensus-
                based standards and best practices by the public 
                transportation industry, including standards and best 
                practices for safety,

[[Page 126 STAT. 691]]

                fare collection, Intelligent Transportation Systems, 
                accessibility, procurement, security, asset management 
                to maintain a state of good repair, operations, 
                maintenance, vehicle propulsion, communications, and 
                vehicle electronics.

    ``(b) Technical Assistance.--The Secretary, through a competitive 
bid process, may enter into contracts, cooperative agreements, and other 
agreements with national nonprofit organizations that have the 
appropriate demonstrated capacity to provide public transportation-
related technical assistance under this section. The Secretary may enter 
into such contracts, cooperative agreements, and other agreements to 
assist providers of public transportation to--
            ``(1) comply with the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) through technical assistance, 
        demonstration programs, research, public education, and other 
        activities related to complying with such Act;
            ``(2) comply with human services transportation coordination 
        requirements and to enhance the coordination of Federal 
        resources for human services transportation with those of the 
        Department of Transportation through technical assistance, 
        training, and support services related to complying with such 
        requirements;
            ``(3) meet the transportation needs of elderly individuals;
            ``(4) increase transit ridership in coordination with 
        metropolitan planning organizations and other entities through 
        development around public transportation stations through 
        technical assistance and the development of tools, guidance, and 
        analysis related to market-based development around transit 
        stations;
            ``(5) address transportation equity with regard to the 
        effect that transportation planning, investment and operations 
        have for low-income and minority individuals; and
            ``(6) any other technical assistance activity that the 
        Secretary determines is necessary to advance the interests of 
        public transportation.

    ``(c) Annual Report on Technical Assistance.--Not later than the 
first Monday in February of each year, the Secretary shall submit to the 
Committee on Banking, Housing, and Urban Affairs and the Committee on 
Appropriations of the Senate and the Committee on Transportation and 
Infrastructure, the Committee on Science, Space, and Technology, and the 
Committee on Appropriations of the House of Representatives a report 
that includes--
            ``(1) a description of each project that received assistance 
        under this section during the preceding fiscal year;
            ``(2) an evaluation of the activities carried out by each 
        organization that received assistance under this section during 
        the preceding fiscal year; and
            ``(3) a proposal for allocations of amounts for assistance 
        under this section for the subsequent fiscal year.

    ``(d) Government Share of Costs.--
            ``(1) In general.--The Government share of the cost of an 
        activity carried out using a grant under this section may not 
        exceed 80 percent.
            ``(2) Non-government share.--The non-Government share of the 
        cost of an activity carried out using a grant under this section 
        may be derived from in-kind contributions.''.

[[Page 126 STAT. 692]]

SEC. 20013. PRIVATE SECTOR PARTICIPATION.

    (a) In General.--Section 5315 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5315. Private sector participation

    ``(a) General Purposes.--In the interest of fulfilling the general 
purposes of this chapter under section 5301(b), the Secretary shall--
            ``(1) better coordinate public and private sector-provided 
        public transportation services;
            ``(2) promote more effective utilization of private sector 
        expertise, financing, and operational capacity to deliver costly 
        and complex new fixed guideway capital projects; and
            ``(3) promote transparency and public understanding of 
        public-private partnerships affecting public transportation.

    ``(b) Actions to Promote Better Coordination Between Public and 
Private Sector Providers of Public Transportation.--The Secretary 
shall--
            ``(1) provide technical assistance to recipients of Federal 
        transit grant assistance, at the request of a recipient, on 
        practices and methods to best utilize private providers of 
        public transportation; and
            ``(2) educate recipients of Federal transit grant assistance 
        on laws and regulations under this chapter that impact private 
        providers of public transportation.

    ``(c) Actions to Provide Technical Assistance for Alternative 
Project Delivery Methods.--Upon request by a sponsor of a new fixed 
guideway capital project, the Secretary shall--
            ``(1) identify best practices for public-private 
        partnerships models in the United States and in other countries;
            ``(2) develop standard public-private partnership 
        transaction model contracts; and
            ``(3) perform financial assessments that include the 
        calculation of public and private benefits of a proposed public-
        private partnership transaction.''.

    (b) <<NOTE: 49 USC 5315 note.>> Public-private Partnership 
Procedures and Approaches.--
            (1) Identify impediments.--The Secretary shall--
                    (A) except as provided in paragraph (6), identify 
                any provisions of chapter 53 of title 49, United States 
                Code, and any regulations or practices thereunder, that 
                impede greater use of public-private partnerships and 
                private investment in public transportation capital 
                projects; and
                    (B) develop and implement on a project basis 
                procedures and approaches that--
                          (i) address such impediments in a manner 
                      similar to the Special Experimental Project Number 
                      15 of the Federal Highway Administration (commonly 
                      referred to as ``SEP-15''); and
                          (ii) protect the public interest and any 
                      public investment in public transportation capital 
                      projects that involve public-private partnerships 
                      or private investment in public transportation 
                      capital projects.
            (2) <<NOTE: Guidance.>> Transparency.--The Secretary shall 
        develop guidance to promote greater transparency and public 
        access to public-private partnership agreements involving 
        recipients of Federal

[[Page 126 STAT. 693]]

        assistance under chapter 53 of title 49, United States Code, 
        including--
                    (A) any conflict of interest involving any party 
                involved in the public-private partnership;
                    (B) tax and financing aspects related to a public-
                private partnership agreement;
                    (C) changes in the workforce and wages, benefits, or 
                rules as a result of a public-private partnership;
                    (D) estimates of the revenue or savings the public-
                private partnership will produce for the private entity 
                and public entity;
                    (E) any impacts on other developments and 
                transportation modes as a result of non-compete clauses 
                contained in public-private partnership agreements; and
                    (F) any other issues the Secretary believes will 
                increase transparency of public-private partnership 
                agreements and protect the public interest.
            (3) Assessment.--In developing and implementing the guidance 
        under paragraph (2), the Secretary shall encourage project 
        sponsors to conduct assessments to determine whether use of a 
        public-private partnership represents a better public and 
        financial benefit than a similar transaction using public 
        funding or public project delivery.
            (4) Report.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the status of the procedures, approaches, and guidance 
        developed and implemented under paragraphs (1) and (2).
            (5) <<NOTE: Deadline.>> Rulemaking.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary shall 
        issue rules to carry out the procedures and approaches developed 
        under paragraph (1).
            (6) Rule of construction.--Nothing in this subsection may be 
        construed to allow the Secretary to waive any requirement 
        under--
                    (A) section 5333 of title 49, United States Code;
                    (B) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.); or
                    (C) any other provision of Federal law.

    (c) Contracting Out Study.--
            (1) <<NOTE: Deadline. Reports.>> In general.--Not later than 
        1 year after the date of enactment of this Act, the Comptroller 
        General of the United States shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Banking, Housing, and Urban 
        Affairs of the Senate a comprehensive report on the effect of 
        contracting out public transportation operations and 
        administrative functions on cost, availability and level of 
        service, efficiency, and quality of service.
            (2) Considerations.--In developing the report, the 
        Comptroller General shall consider--
                    (A) the number of grant recipients that have 
                contracted out services and the types of public 
                transportation services that are performed under 
                contract, including paratransit service, fixed route bus 
                service, commuter rail operations, and administrative 
                functions;

[[Page 126 STAT. 694]]

                    (B) the size of the populations served by such grant 
                recipients;
                    (C) the basis for decisions regarding contracting 
                out such services;
                    (D) comparative costs of providing service under 
                contract to providing the same service through public 
                transit agency employees, using to the greatest extent 
                possible a standard cost allocation model;
                    (E) the extent of unionization among privately 
                contracted employees;
                    (F) the impact to wages and benefits of employees 
                when publicly provided public transportation services 
                are contracted out to a private for-profit entity;
                    (G) the level of transparency and public access to 
                agreements and contracts related to contracted out 
                public transportation services;
                    (H) the extent of Federal law, regulations and 
                guidance prohibiting any conflicts of interest for 
                contractor employees and businesses;
                    (I) the extent to which grant recipients evaluate 
                contracted out services before selecting them and the 
                extent to which grant recipients conduct oversight of 
                those services; and
                    (J) barriers to contracting out public 
                transportation operations and administrative functions.

    (d) <<NOTE: Deadline. Federal Register, publication. 49 USC 5303 
note.>> Guidance on Documenting Compliance.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall publish in the 
Federal Register policy guidance regarding how to best document 
compliance by recipients of Federal assistance under chapter 53 of title 
49, United States Code, with the requirements regarding private 
enterprise participation in public transportation planning and 
transportation improvement programs under sections 5303(i)(6), 5306(a), 
and 5307(c) of such title 49.
SEC. 20014. BUS TESTING FACILITIES.

    Section 5318 of title 49, United States Code, is amended by striking 
subsection (e) and inserting the following:
    ``(e) Acquiring New Bus Models.--
            ``(1) In general.--Amounts appropriated or otherwise made 
        available under this chapter may be obligated or expended to 
        acquire a new bus model only if--
                    ``(A) a bus of that model has been tested at a 
                facility authorized under subsection (a); and
                    ``(B) the bus tested under subparagraph (A) met--
                          ``(i) performance standards for 
                      maintainability, reliability, performance 
                      (including braking performance), structural 
                      integrity, fuel economy, emissions, and noise, as 
                      established by the Secretary by rule; and
                          ``(ii) the minimum safety performance 
                      standards established by the Secretary pursuant to 
                      section 5329(b).
            ``(2) <<NOTE: Deadline. Regulations.>> Bus test `pass/fail' 
        standard.--Not later than 2 years after the date of enactment of 
        the Federal Public Transportation Act of 2012, the Secretary 
        shall issue a final rule under subparagraph (B)(i). The final 
        rule issued under paragraph (B)(i) shall include a bus model 
        scoring system that results

[[Page 126 STAT. 695]]

        in a weighted, aggregate score that uses the testing categories 
        under subsection (a) and considers the relative importance of 
        each such testing category. The final rule issued under 
        subparagraph (B)(i) shall establish a `pass/fail' standard that 
        uses the aggregate score described in the preceding sentence. 
        Amounts appropriated or otherwise made available under this 
        chapter may be obligated or expended to acquire a new bus model 
        only if the new bus model has received a passing aggregate test 
        score. The Secretary shall work with the bus testing facility, 
        bus manufacturers, and transit agencies to develop the bus model 
        scoring system under this paragraph. A passing aggregate test 
        score under the rule issued under subparagraph (B)(i) indicates 
        only that amounts appropriated or made available under this 
        chapter may be obligated or expended to acquire a new bus model 
        and shall not be interpreted as a warranty or guarantee that the 
        new bus model will meet a purchaser's specific requirements.''.
SEC. 20015. HUMAN RESOURCES AND TRAINING.

    Section 5322 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5322. Human resources and training

    ``(a) In General.--The Secretary may undertake, or make grants and 
contracts for, programs that address human resource needs as they apply 
to public transportation activities. A program may include--
            ``(1) an employment training program;
            ``(2) an outreach program to increase minority and female 
        employment in public transportation activities;
            ``(3) research on public transportation personnel and 
        training needs; and
            ``(4) training and assistance for minority business 
        opportunities.

    ``(b) Innovative Public Transportation Workforce Development 
Program.--
            ``(1) <<NOTE: Grants.>> Program established.--The Secretary 
        shall establish a competitive grant program to assist the 
        development of innovative activities eligible for assistance 
        under subsection (a).
            ``(2) Selection of recipients.--To the maximum extent 
        feasible, the Secretary shall select recipients that--
                    ``(A) are geographically diverse;
                    ``(B) address the workforce and human resources 
                needs of large public transportation providers;
                    ``(C) address the workforce and human resources 
                needs of small public transportation providers;
                    ``(D) address the workforce and human resources 
                needs of urban public transportation providers;
                    ``(E) address the workforce and human resources 
                needs of rural public transportation providers;
                    ``(F) advance training related to maintenance of 
                alternative energy, energy efficiency, or zero emission 
                vehicles and facilities used in public transportation;
                    ``(G) target areas with high rates of unemployment; 
                and

[[Page 126 STAT. 696]]

                    ``(H) address current or projected workforce 
                shortages in areas that require technical expertise.

    ``(c) Government's Share of Costs.--The Government share of the cost 
of a project carried out using a grant under subsection (a) or (b) shall 
be 50 percent.
    ``(d) National Transit Institute.--
            ``(1) Establishment.--The Secretary shall establish a 
        national transit institute and award grants to a public 4-year 
        degree-granting institution of higher education, as defined in 
        section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1001(a)), in order to carry out the duties of the institute.
            ``(2) Duties.--
                    ``(A) In general.--In cooperation with the Federal 
                Transit Administration, State transportation 
                departments, public transportation authorities, and 
                national and international entities, the institute 
                established under paragraph (1) shall develop and 
                conduct training and educational programs for Federal, 
                State, and local transportation employees, United States 
                citizens, and foreign nationals engaged or to be engaged 
                in Government-aid public transportation work.
                    ``(B) Training and educational programs.--The 
                training and educational programs developed under 
                subparagraph (A) may include courses in recent 
                developments, techniques, and procedures related to--
                          ``(i) intermodal and public transportation 
                      planning;
                          ``(ii) management;
                          ``(iii) environmental factors;
                          ``(iv) acquisition and joint use rights-of-
                      way;
                          ``(v) engineering and architectural design;
                          ``(vi) procurement strategies for public 
                      transportation systems;
                          ``(vii) turnkey approaches to delivering 
                      public transportation systems;
                          ``(viii) new technologies;
                          ``(ix) emission reduction technologies;
                          ``(x) ways to make public transportation 
                      accessible to individuals with disabilities;
                          ``(xi) construction, construction management, 
                      insurance, and risk management;
                          ``(xii) maintenance;
                          ``(xiii) contract administration;
                          ``(xiv) inspection;
                          ``(xv) innovative finance;
                          ``(xvi) workplace safety; and
                          ``(xvii) public transportation security.
            ``(3) Providing education and training.--Education and 
        training of Government, State, and local transportation 
        employees under this subsection shall be provided--
                    ``(A) by the Secretary at no cost to the States and 
                local governments for subjects that are a Government 
                program responsibility; or
                    ``(B) when the education and training are paid under 
                paragraph (4) of this subsection, by the State, with the 
                approval of the Secretary, through grants and contracts 
                with public and private agencies, other institutions, 
                individuals, and the institute.

[[Page 126 STAT. 697]]

            ``(4) Availability of amounts.--Not more than .5 percent of 
        the amounts made available for a fiscal year beginning after 
        September 30, 1991, to a State or public transportation 
        authority in the State to carry out sections 5307 and 5309 of 
        this title is available for expenditure by the State and public 
        transportation authorities in the State, with the approval of 
        the Secretary, to pay not more than 80 percent of the cost of 
        tuition and direct educational expenses related to educating and 
        training State and local transportation employees under this 
        subsection.

    ``(e) Report.--Not later than 2 years after the date of enactment of 
the Federal Public Transportation Act of 2012, the Secretary shall 
submit to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Transportation and Infrastructure of the 
House of Representatives a report concerning the measurable outcomes and 
impacts of the programs funded under subsections (a) and (b).''.
SEC. 20016. GENERAL PROVISIONS.

    Section 5323 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5323. General provisions

    ``(a) Interests in Property.--
            ``(1) <<NOTE: Determinations.>> In general.--Financial 
        assistance provided under this chapter to a State or a local 
        governmental authority may be used to acquire an interest in, or 
        to buy property of, a private company engaged in public 
        transportation, for a capital project for property acquired from 
        a private company engaged in public transportation after July 9, 
        1964, or to operate a public transportation facility or 
        equipment in competition with, or in addition to, transportation 
        service provided by an existing public transportation company, 
        only if--
                    ``(A) the Secretary determines that such financial 
                assistance is essential to a program of projects 
                required under sections 5303, 5304, and 5306;
                    ``(B) the Secretary determines that the program 
                provides for the participation of private companies 
                engaged in public transportation to the maximum extent 
                feasible; and
                    ``(C) just compensation under State or local law 
                will be paid to the company for its franchise or 
                property.
            ``(2) Limitation.--A governmental authority may not use 
        financial assistance of the United States Government to acquire 
        land, equipment, or a facility used in public transportation 
        from another governmental authority in the same geographic area.

    ``(b) <<NOTE: Applicability.>> Relocation and Real Property 
Requirements.--The Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
financial assistance for capital projects under this chapter.

    ``(c) Consideration of Economic, Social, and Environmental 
Interests.--
            ``(1) Cooperation and consultation.--The Secretary shall 
        cooperate and consult with the Secretary of the Interior and the 
        Administrator of the Environmental Protection Agency on

[[Page 126 STAT. 698]]

        each project that may have a substantial impact on the 
        environment.
            ``(2) <<NOTE: Applicability.>> Compliance with nepa.--The 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) shall apply to financial assistance for capital projects 
        under this chapter.

    ``(d) Condition on Charter Bus Transportation Service.--
            ``(1) Agreements.--Financial assistance under this chapter 
        may be used to buy or operate a bus only if the applicant, 
        governmental authority, or publicly owned operator that receives 
        the assistance agrees that, except as provided in the agreement, 
        the governmental authority or an operator of public 
        transportation for the governmental authority will not provide 
        charter bus transportation service outside the urban area in 
        which it provides regularly scheduled public transportation 
        service. An agreement shall provide for a fair arrangement the 
        Secretary of Transportation considers appropriate to ensure that 
        the assistance will not enable a governmental authority or an 
        operator for a governmental authority to foreclose a private 
        operator from providing intercity charter bus service if the 
        private operator can provide the service.
            ``(2) Violations.--
                    ``(A) Investigations.--On receiving a complaint 
                about a violation of the agreement required under 
                paragraph (1), the Secretary shall investigate and 
                decide whether a violation has occurred.
                    ``(B) Enforcement of agreements.--If the Secretary 
                decides that a violation has occurred, the Secretary 
                shall correct the violation under terms of the 
                agreement.
                    ``(C) Additional remedies.--In addition to any 
                remedy specified in the agreement, the Secretary shall 
                bar a recipient or an operator from receiving Federal 
                transit assistance in an amount the Secretary considers 
                appropriate if the Secretary finds a pattern of 
                violations of the agreement.

    ``(e) Bond Proceeds Eligible for Local Share.--
            ``(1) Use as local matching funds.--Notwithstanding any 
        other provision of law, a recipient of assistance under section 
        5307, 5309, or 5337 may use the proceeds from the issuance of 
        revenue bonds as part of the local matching funds for a capital 
        project.
            ``(2) Maintenance of effort.--The Secretary shall approve of 
        the use of the proceeds from the issuance of revenue bonds for 
        the remainder of the net project cost only if the Secretary 
        finds that the aggregate amount of financial support for public 
        transportation in the urbanized area provided by the State and 
        affected local governmental authorities during the next 3 fiscal 
        years, as programmed in the State transportation improvement 
        program under section 5304, is not less than the aggregate 
        amount provided by the State and affected local governmental 
        authorities in the urbanized area during the preceding 3 fiscal 
        years.
            ``(3) Debt service reserve.--The Secretary may reimburse an 
        eligible recipient for deposits of bond proceeds in a debt 
        service reserve that the recipient establishes pursuant to 
        section 5302(3)(J) from amounts made available to the recipient 
        under section 5309.

    ``(f) Schoolbus Transportation.--

[[Page 126 STAT. 699]]

            ``(1) Agreements.--Financial assistance under this chapter 
        may be used for a capital project, or to operate public 
        transportation equipment or a public transportation facility, 
        only if the applicant agrees not to provide schoolbus 
        transportation that exclusively transports students and school 
        personnel in competition with a private schoolbus operator. This 
        subsection does not apply--
                    ``(A) to an applicant that operates a school system 
                in the area to be served and a separate and exclusive 
                schoolbus program for the school system; and
                    ``(B) unless a private schoolbus operator can 
                provide adequate transportation that complies with 
                applicable safety standards at reasonable rates.
            ``(2) Violations.--If the Secretary finds that an applicant, 
        governmental authority, or publicly owned operator has violated 
        the agreement required under paragraph (1), the Secretary shall 
        bar a recipient or an operator from receiving Federal transit 
        assistance in an amount the Secretary considers appropriate.

    ``(g) <<NOTE: Applicability.>> Buying Buses Under Other Laws.--
Subsections (d) and (f) of this section apply to financial assistance to 
buy a bus under sections 133 and 142 of title 23.

    ``(h) Grant and Loan Prohibitions.--A grant or loan may not be used 
to--
            ``(1) pay ordinary governmental or nonproject operating 
        expenses; or
            ``(2) support a procurement that uses an exclusionary or 
        discriminatory specification.

    ``(i) Government Share of Costs for Certain Projects.--
            ``(1) Acquiring vehicles and vehicle-related equipment or 
        facilities.--
                    ``(A) Vehicles.--A grant for a project to be 
                assisted under this chapter that involves acquiring 
                vehicles for purposes of complying with or maintaining 
                compliance with the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.) or the Clean Air Act is 
                for 85 percent of the net project cost.
                    ``(B) Vehicle-related equipment or facilities.--A 
                grant for a project to be assisted under this chapter 
                that involves acquiring vehicle-related equipment or 
                facilities required by the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12101 et seq.) or vehicle-related 
                equipment or facilities (including clean fuel or 
                alternative fuel vehicle-related equipment or 
                facilities) for purposes of complying with or 
                maintaining compliance with the Clean Air Act, is for 90 
                percent of the net project cost of such equipment or 
                facilities attributable to compliance with those Acts. 
                The Secretary shall have discretion to determine, 
                through practicable administrative procedures, the costs 
                of such equipment or facilities attributable to 
                compliance with those Acts.
            ``(2) Costs incurred by providers of public transportation 
        by vanpool.--
                    ``(A) Local matching share.--The local matching 
                share provided by a recipient of assistance for a 
                capital project under this chapter may include any 
                amounts expended by a provider of public transportation 
                by vanpool

[[Page 126 STAT. 700]]

                for the acquisition of rolling stock to be used by such 
                provider in the recipient's service area, excluding any 
                amounts the provider may have received in Federal, 
                State, or local government assistance for such 
                acquisition.
                    ``(B) Use of revenues.--A private provider of public 
                transportation by vanpool may use revenues it receives 
                in the provision of public transportation service in the 
                service area of a recipient of assistance under this 
                chapter that are in excess of the provider's operating 
                costs for the purpose of acquiring rolling stock, if the 
                private provider enters into a legally binding agreement 
                with the recipient that requires the provider to use the 
                rolling stock in the recipient's service area.
                    ``(C) Definitions.--In this paragraph, the following 
                definitions apply:
                          ``(i) Private provider of public 
                      transportation by vanpool.--The term `private 
                      provider of public transportation by vanpool' 
                      means a private entity providing vanpool services 
                      in the service area of a recipient of assistance 
                      under this chapter using a commuter highway 
                      vehicle or vanpool vehicle.
                          ``(ii) Commuter highway vehicle; vanpool 
                      vehicle.--The term `commuter highway vehicle or 
                      vanpool vehicle' means any vehicle--
                                    ``(I) the seating capacity of which 
                                is at least 6 adults (not including the 
                                driver); and
                                    ``(II) at least 80 percent of the 
                                mileage use of which can be reasonably 
                                expected to be for the purposes of 
                                transporting commuters in connection 
                                with travel between their residences and 
                                their place of employment.

    ``(j) Buy America.--
            ``(1) In general.--The Secretary may obligate an amount that 
        may be appropriated to carry out this chapter for a project only 
        if the steel, iron, and manufactured goods used in the project 
        are produced in the United States.
            ``(2) Waiver.--The Secretary may waive paragraph (1) of this 
        subsection if the Secretary finds that--
                    ``(A) applying paragraph (1) would be inconsistent 
                with the public interest;
                    ``(B) the steel, iron, and goods produced in the 
                United States are not produced in a sufficient and 
                reasonably available amount or are not of a satisfactory 
                quality;
                    ``(C) when procuring rolling stock (including train 
                control, communication, and traction power equipment) 
                under this chapter--
                          ``(i) the cost of components and subcomponents 
                      produced in the United States is more than 60 
                      percent of the cost of all components of the 
                      rolling stock; and
                          ``(ii) final assembly of the rolling stock has 
                      occurred in the United States; or
                    ``(D) including domestic material will increase the 
                cost of the overall project by more than 25 percent.
            ``(3) Written waiver determination and annual report.--
                    ``(A) Written determination.--Before issuing a 
                waiver under paragraph (2), the Secretary shall--

[[Page 126 STAT. 701]]

                          ``(i) <<NOTE: Federal Register, 
                      publication. Public information. Web 
                      posting.>> publish in the Federal Register and 
                      make publicly available in an easily identifiable 
                      location on the website of the Department of 
                      Transportation a detailed written explanation of 
                      the waiver determination; and
                          ``(ii) <<NOTE: Public information.>> provide 
                      the public with a reasonable period of time for 
                      notice and comment.
                    ``(B) Annual report.--Not later than 1 year after 
                the date of enactment of the Federal Public 
                Transportation Act of 2012, and annually thereafter, the 
                Secretary shall submit to the Committee on Banking, 
                Housing, and Urban Affairs of the Senate and the 
                Committee on Transportation and Infrastructure of the 
                House of Representatives a report listing any waiver 
                issued under paragraph (2) during the preceding year.
            ``(4) Labor costs for final assembly.--In this subsection, 
        labor costs involved in final assembly are not included in 
        calculating the cost of components.
            ``(5) Waiver prohibited.--The Secretary may not make a 
        waiver under paragraph (2) of this subsection for goods produced 
        in a foreign country if the Secretary, in consultation with the 
        United States Trade Representative, decides that the government 
        of that foreign country--
                    ``(A) has an agreement with the United States 
                Government under which the Secretary has waived the 
                requirement of this subsection; and
                    ``(B) has violated the agreement by discriminating 
                against goods to which this subsection applies that are 
                produced in the United States and to which the agreement 
                applies.
            ``(6) Penalty for mislabeling and misrepresentation.--A 
        person is ineligible under subpart 9.4 of the Federal 
        Acquisition Regulation, or any successor thereto, to receive a 
        contract or subcontract made with amounts authorized under the 
        Federal Public Transportation Act of 2012 if a court or 
        department, agency, or instrumentality of the Government decides 
        the person intentionally--
                    ``(A) affixed a `Made in America' label, or a label 
                with an inscription having the same meaning, to goods 
                sold in or shipped to the United States that are used in 
                a project to which this subsection applies but not 
                produced in the United States; or
                    ``(B) represented that goods described in 
                subparagraph (A) of this paragraph were produced in the 
                United States.
            ``(7) State requirements.--The Secretary may not impose any 
        limitation on assistance provided under this chapter that 
        restricts a State from imposing more stringent requirements than 
        this subsection on the use of articles, materials, and supplies 
        mined, produced, or manufactured in foreign countries in 
        projects carried out with that assistance or restricts a 
        recipient of that assistance from complying with those State-
        imposed requirements.
            ``(8) Opportunity to correct inadvertent error.--The 
        Secretary may allow a manufacturer or supplier of steel, iron, 
        or manufactured goods to correct after bid opening any 
        certification of noncompliance or failure to properly complete 
        the certification (but not including failure to sign the 
        certification) under this subsection if such manufacturer or 
        supplier attests

[[Page 126 STAT. 702]]

        under penalty of perjury that such manufacturer or supplier 
        submitted an incorrect certification as a result of an 
        inadvertent or clerical error. The burden of establishing 
        inadvertent or clerical error is on the manufacturer or 
        supplier.
            ``(9) Administrative review.--A party adversely affected by 
        an agency action under this subsection shall have the right to 
        seek review under section 702 of title 5.

    ``(k) Participation of Governmental Agencies in Design and Delivery 
of Transportation Services.--Governmental agencies and nonprofit 
organizations that receive assistance from Government sources (other 
than the Department of Transportation) for nonemergency transportation 
services shall--
            ``(1) participate and coordinate with recipients of 
        assistance under this chapter in the design and delivery of 
        transportation services; and
            ``(2) be included in the planning for those services.

    ``(l) Relationship to Other Laws.--
            ``(1) <<NOTE: Applicability.>> Fraud and false statements.--
        Section 1001 of title 18 applies to a certificate, submission, 
        or statement provided under this chapter. The Secretary may 
        terminate financial assistance under this chapter and seek 
        reimbursement directly, or by offsetting amounts, available 
        under this chapter if the Secretary determines that a recipient 
        of such financial assistance has made a false or fraudulent 
        statement or related act in connection with a Federal public 
        transportation program.
            ``(2) Political activities of nonsupervisory employees.--The 
        provision of assistance under this chapter shall not be 
        construed to require the application of chapter 15 of title 5 to 
        any nonsupervisory employee of a public transportation system 
        (or any other agency or entity performing related functions) to 
        whom such chapter does not otherwise apply.

    ``(m) Preaward and Postdelivery Review of Rolling Stock Purchases.-- 
<<NOTE: Regulations.>> The Secretary shall prescribe regulations 
requiring a preaward and postdelivery review of a grant under this 
chapter to buy rolling stock to ensure compliance with Government motor 
vehicle safety requirements, subsection (j) of this section, and bid 
specifications requirements of grant recipients under this chapter. 
Under this subsection, independent inspections and review are required, 
and a manufacturer certification is not sufficient. Rolling stock 
procurements of 20 vehicles or fewer made for the purpose of serving 
rural areas and urbanized areas with populations of 200,000 or fewer 
shall be subject to the same requirements as established for 
procurements of 10 or fewer buses under the post-delivery purchaser's 
requirements certification process under section 663.37(c) of title 49, 
Code of Federal Regulations.

    ``(n) Submission of Certifications.--A certification required under 
this chapter and any additional certification or assurance required by 
law or regulation to be submitted to the Secretary may be consolidated 
into a single document to be submitted annually as part of a grant 
application under this chapter. The Secretary shall publish annually a 
list of all certifications required under this chapter with the 
publication required under section 5336(d)(2).
    ``(o) <<NOTE: Applicability.>> Grant Requirements.--The grant 
requirements under sections 5307, 5309, and 5337 apply to any project 
under this chapter

[[Page 126 STAT. 703]]

that receives any assistance or other financing under chapter 6 (other 
than section 609) of title 23.

    ``(p) Alternative Fueling Facilities.--A recipient of assistance 
under this chapter may allow the incidental use of federally funded 
alternative fueling facilities and equipment by nontransit public 
entities and private entities if--
            ``(1) the incidental use does not interfere with the 
        recipient's public transportation operations;
            ``(2) all costs related to the incidental use are fully 
        recaptured by the recipient from the nontransit public entity or 
        private entity;
            ``(3) the recipient uses revenues received from the 
        incidental use in excess of costs for planning, capital, and 
        operating expenses that are incurred in providing public 
        transportation; and
            ``(4) private entities pay all applicable excise taxes on 
        fuel.

    ``(q) Corridor Preservation.--
            ``(1) In general.--The Secretary may assist a recipient in 
        acquiring right-of-way before the completion of the 
        environmental reviews for any project that may use the right-of-
        way if the acquisition is otherwise permitted under Federal law. 
        The Secretary may establish restrictions on such an acquisition 
        as the Secretary determines to be necessary and appropriate.
            ``(2) Environmental reviews.--Right-of-way acquired under 
        this subsection may not be developed in anticipation of the 
        project until all required environmental reviews for the project 
        have been completed.

    ``(r) Reasonable Access to Public Transportation Facilities.--A 
recipient of assistance under this chapter may not deny reasonable 
access for a private intercity or charter transportation operator to 
federally funded public transportation facilities, including intermodal 
facilities, park and ride lots, and bus-only highway lanes. In 
determining reasonable access, capacity requirements of the recipient of 
assistance and the extent to which access would be detrimental to 
existing public transportation services must be considered.''.
SEC. 20017. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM.

    (a) In General.--Section 5324 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5324. Public transportation emergency relief program

    ``(a) Definition.--In this section the following definitions shall 
apply:
            ``(1) Eligible operating costs.--The term `eligible 
        operating costs' means costs relating to--
                    ``(A) evacuation services;
                    ``(B) rescue operations;
                    ``(C) temporary public transportation service; or
                    ``(D) reestablishing, expanding, or relocating 
                public transportation route service before, during, or 
                after an emergency.
            ``(2) Emergency.--The term `emergency' means a natural 
        disaster affecting a wide area (such as a flood, hurricane, 
        tidal wave, earthquake, severe storm, or landslide) or a 
        catastrophic failure from any external cause, as a result of 
        which--

[[Page 126 STAT. 704]]

                    ``(A) the Governor of a State has declared an 
                emergency and the Secretary has concurred; or
                    ``(B) the President has declared a major disaster 
                under section 401 of the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5170).

    ``(b) General Authority.--The Secretary may make grants and enter 
into contracts and other agreements (including agreements with 
departments, agencies, and instrumentalities of the Government) for--
            ``(1) capital projects to protect, repair, reconstruct, or 
        replace equipment and facilities of a public transportation 
        system operating in the United States or on an Indian 
        reservation that the Secretary determines is in danger of 
        suffering serious damage, or has suffered serious damage, as a 
        result of an emergency; and
            ``(2) <<NOTE: Time periods.>> eligible operating costs of 
        public transportation equipment and facilities in an area 
        directly affected by an emergency during--
                    ``(A) the 1-year period beginning on the date of a 
                declaration described in subsection (a)(2); or
                    ``(B) if the Secretary determines there is a 
                compelling need, the 2-year period beginning on the date 
                of a declaration described in subsection (a)(2).

    ``(c) Coordination of Emergency Funds.--
            ``(1) Use of funds.--Funds appropriated to carry out this 
        section shall be in addition to any other funds available under 
        this chapter.
            ``(2) No effect on other government activity.--The provision 
        of funds under this section shall not affect the ability of any 
        other agency of the Government, including the Federal Emergency 
        Management Agency, or a State agency, a local governmental 
        entity, organization, or person, to provide any other funds 
        otherwise authorized by law.
            ``(3) Notification.--The Secretary shall notify the 
        Secretary of Homeland Security of the purpose and amount of any 
        grant made or contract or other agreement entered into under 
        this section.

    ``(d) Grant Requirements.--A grant awarded under this section or 
under section 5307 or 5311 that is made to address an emergency defined 
under subsection (a)(2) shall be--
            ``(1) subject to the terms and conditions the Secretary 
        determines are necessary; and
            ``(2) made only for expenses that are not reimbursed under 
        the Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5121 et seq.).

    ``(e) Government Share of Costs.--
            ``(1) Capital projects and operating assistance.--A grant, 
        contract, or other agreement for a capital project or eligible 
        operating costs under this section shall be, at the option of 
        the recipient, for not more than 80 percent of the net project 
        cost, as determined by the Secretary.
            ``(2) Non-federal share.--The remainder of the net project 
        cost may be provided from an undistributed cash surplus, a 
        replacement or depreciation cash fund or reserve, or new 
        capital.
            ``(3) Waiver.--The Secretary may waive, in whole or part, 
        the non-Federal share required under--

[[Page 126 STAT. 705]]

                    ``(A) paragraph (2); or
                    ``(B) section 5307 or 5311, in the case of a grant 
                made available under section 5307 or 5311, respectively, 
                to address an emergency.''.

    (b) <<NOTE: 49 USC 5324 note.>> Memorandum of Agreement.--
            (1) Purposes.--The purposes of this subsection are--
                    (A) to improve coordination between the Department 
                of Transportation and the Department of Homeland 
                Security; and
                    (B) to expedite the provision of Federal assistance 
                for public transportation systems for activities 
                relating to a major disaster or emergency declared by 
                the President under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.) (referred to in this subsection as a ``major 
                disaster or emergency'').
            (2) <<NOTE: Deadline.>> Agreement.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary of 
        Transportation and the Secretary of Homeland Security shall 
        enter into a memorandum of agreement to coordinate the roles and 
        responsibilities of the Department of Transportation and the 
        Department of Homeland Security in providing assistance for 
        public transportation, including the provision of public 
        transportation services and the repair and restoration of public 
        transportation systems in areas for which the President has 
        declared a major disaster or emergency.
            (3) Contents of agreement.--The memorandum of agreement 
        required under paragraph (2) shall--
                    (A) provide for improved coordination and 
                expeditious use of public transportation, as 
                appropriate, in response to and recovery from a major 
                disaster or emergency;
                    (B) establish procedures to address--
                          (i) issues that have contributed to delays in 
                      the reimbursement of eligible transportation-
                      related expenses relating to a major disaster or 
                      emergency;
                          (ii) any challenges identified in the review 
                      under paragraph (4); and
                          (iii) the coordination of assistance for 
                      public transportation provided under the Robert T. 
                      Stafford Disaster Relief and Emergency Assistance 
                      Act and section 5324 of title 49, United States 
                      Code, as amended by this Act, as appropriate; and
                    (C) provide for the development and distribution of 
                clear guidelines for State, local, and tribal 
                governments, including public transportation systems, 
                relating to--
                          (i) assistance available for public 
                      transportation systems for activities relating to 
                      a major disaster or emergency--
                                    (I) under the Robert T. Stafford 
                                Disaster Relief and Emergency Assistance 
                                Act;
                                    (II) under section 5324 of title 49, 
                                United States Code, as amended by this 
                                Act; and
                                    (III) from other sources, including 
                                other Federal agencies; and
                          (ii) reimbursement procedures that speed the 
                      process of--

[[Page 126 STAT. 706]]

                                    (I) applying for assistance under 
                                the Robert T. Stafford Disaster Relief 
                                and Emergency Assistance Act and section 
                                5324 of title 49, United States Code, as 
                                amended by this Act; and
                                    (II) distributing assistance for 
                                public transportation systems under the 
                                Robert T. Stafford Disaster Relief and 
                                Emergency Assistance Act and section 
                                5324 of title 49, United States Code, as 
                                amended by this Act.
            (4) After action review.--Before entering into a memorandum 
        of agreement under paragraph (2), the Secretary of 
        Transportation and the Secretary of Homeland Security (acting 
        through the Administrator of the Federal Emergency Management 
        Agency), in consultation with State, local, and tribal 
        governments (including public transportation systems) that have 
        experienced a major disaster or emergency, shall review after 
        action reports relating to major disasters, emergencies, and 
        exercises, to identify areas where coordination between the 
        Department of Transportation and the Department of Homeland 
        Security and the provision of public transportation services 
        should be improved.
            (5) Factors for declarations of major disasters and 
        emergencies.--The Administrator of the Federal Emergency 
        Management Agency shall make available to State, local, and 
        tribal governments, including public transportation systems, a 
        description of the factors that the President considers in 
        declaring a major disaster or emergency, including any pre-
        disaster emergency declaration policies.
            (6) Briefings.--
                    (A) Initial briefing.-- <<NOTE: Deadline.>> Not 
                later than 180 days after the date of enactment of this 
                Act, the Secretary of Transportation and the Secretary 
                of Homeland Security shall jointly brief the Committee 
                on Banking, Housing, and Urban Affairs and the Committee 
                on Homeland Security and Governmental Affairs of the 
                Senate on the memorandum of agreement required under 
                paragraph (2).
                    (B) Quarterly briefings.--Each quarter of the 1-year 
                period beginning on the date on which the Secretary of 
                Transportation and the Secretary of Homeland Security 
                enter into the memorandum of agreement required under 
                paragraph (2), the Secretary of Transportation and the 
                Secretary of Homeland Security shall jointly brief the 
                Committee on Banking, Housing, and Urban Affairs and the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate on the implementation of the memorandum of 
                agreement.
SEC. 20018. CONTRACT REQUIREMENTS.

    Section 5325 of title 49, United States Code, is amended--
            (1) in subsection (e), by striking paragraph (1) and 
        inserting the following:
            ``(1) Contracts.--A recipient procuring rolling stock with 
        Government financial assistance under this chapter may make a 
        multiyear contract to buy the rolling stock and replacement 
        parts under which the recipient has an option to buy additional 
        rolling stock or replacement parts for--

[[Page 126 STAT. 707]]

                    ``(A) not more than 5 years after the date of the 
                original contract for bus procurements; and
                    ``(B) not more than 7 years after the date of the 
                original contract for rail procurements, provided that 
                such option does not allow for significant changes or 
                alterations to the rolling stock.''.
            (2) in subsection (h), by striking ``Federal Public 
        Transportation Act of 2005'' and inserting ``Federal Public 
        Transportation Act of 2012'';
            (3) in subsection (j)(2)(C), by striking ``, including the 
        performance reported in the Contractor Performance Assessment 
        Reports required under section 5309(l)(2)''; and
            (4) by adding at the end the following:

    ``(k) Veterans Employment.--Recipients and subrecipients of Federal 
financial assistance under this chapter shall ensure that contractors 
working on a capital project funded using such assistance give a hiring 
preference, to the extent practicable, to veterans (as defined in 
section 2108 of title 5) who have the requisite skills and abilities to 
perform the construction work required under the contract. This 
subsection shall not be understood, construed or enforced in any manner 
that would require an employer to give a preference to any veteran over 
any equally qualified applicant who is a member of any racial or ethnic 
minority, female, an individual with a disability, or a former 
employee.''.
SEC. 20019. TRANSIT ASSET MANAGEMENT.

    Section 5326 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5326. Transit asset management

    ``(a) Definitions.--In this section the following definitions shall 
apply:
            ``(1) Capital asset.--The term `capital asset' includes 
        equipment, rolling stock, infrastructure, and facilities for use 
        in public transportation and owned or leased by a recipient or 
        subrecipient of Federal financial assistance under this chapter.
            ``(2) Transit asset management plan.--The term `transit 
        asset management plan' means a plan developed by a recipient of 
        funding under this chapter that--
                    ``(A) includes, at a minimum, capital asset 
                inventories and condition assessments, decision support 
                tools, and investment prioritization; and
                    ``(B) the recipient certifies complies with the rule 
                issued under this section.
            ``(3) Transit asset management system.--The term `transit 
        asset management system' means a strategic and systematic 
        process of operating, maintaining, and improving public 
        transportation capital assets effectively throughout the life 
        cycle of such assets.

    ``(b) Transit Asset Management System.--The Secretary shall 
establish and implement a national transit asset management system, 
which shall include--
            ``(1) a definition of the term `state of good repair' that 
        includes objective standards for measuring the condition of 
        capital assets of recipients, including equipment, rolling 
        stock, infrastructure, and facilities;

[[Page 126 STAT. 708]]

            ``(2) a requirement that recipients and subrecipients of 
        Federal financial assistance under this chapter develop a 
        transit asset management plan;
            ``(3) a requirement that each designated recipient of 
        Federal financial assistance under this chapter report on the 
        condition of the system of the recipient and provide a 
        description of any change in condition since the last report;
            ``(4) an analytical process or decision support tool for use 
        by public transportation systems that--
                    ``(A) allows for the estimation of capital 
                investment needs of such systems over time; and
                    ``(B) assists with asset investment prioritization 
                by such systems; and
            ``(5) technical assistance to recipients of Federal 
        financial assistance under this chapter.

    ``(c) <<NOTE: Deadlines. Regulations.>> Performance Measures and 
Targets.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Federal Public Transportation Act of 2012, the 
        Secretary shall issue a final rule to establish performance 
        measures based on the state of good repair standards established 
        under subsection (b)(1).
            ``(2) Targets.--Not later than 3 months after the date on 
        which the Secretary issues a final rule under paragraph (1), and 
        each fiscal year thereafter, each recipient of Federal financial 
        assistance under this chapter shall establish performance 
        targets in relation to the performance measures established by 
        the Secretary.
            ``(3) Reports.--Each designated recipient of Federal 
        financial assistance under this chapter shall submit to the 
        Secretary an annual report that describes--
                    ``(A) the progress of the recipient during the 
                fiscal year to which the report relates toward meeting 
                the performance targets established under paragraph (2) 
                for that fiscal year; and
                    ``(B) the performance targets established by the 
                recipient for the subsequent fiscal year.

    ``(d) <<NOTE: Deadline.>> Rulemaking.--Not later than 1 year after 
the date of enactment of the Federal Public Transportation Act of 2012, 
the Secretary shall issue a final rule to implement the transit asset 
management system described in subsection (b).''.
SEC. 20020. PROJECT MANAGEMENT OVERSIGHT.

    Section 5327 of title 49, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``United States'' and all that follows through 
                ``Secretary of Transportation'' and inserting the 
                following: ``Federal financial assistance for a major 
                capital project for public transportation under this 
                chapter or any other provision of Federal law, a 
                recipient must prepare a project management plan 
                approved by the Secretary and carry out the project in 
                accordance with the project management plan''; and
                    (B) in paragraph (12), by striking ``each month'' 
                and inserting ``quarterly'';
            (2) by striking subsections (c), (d), and (f);
            (3) by inserting after subsection (b) the following:

[[Page 126 STAT. 709]]

    ``(c) Access to Sites and Records.--Each recipient of Federal 
financial assistance for public transportation under this chapter or any 
other provision of Federal law shall provide the Secretary and a 
contractor the Secretary chooses under section 5338(i) with access to 
the construction sites and records of the recipient when reasonably 
necessary.'';
            (4) by redesignating subsection (e) as subsection (d); and
            (5) in subsection (d), as so redesignated--
                    (A) in paragraph (1), by striking ``subsection (c) 
                of this section'' and inserting ``section 5338(i)''; and
                    (B) in paragraph (2)--
                          (i) by striking ``preliminary engineering 
                      stage'' and inserting ``project development 
                      phase''; and
                          (ii) by striking ``another stage'' and 
                      inserting ``another phase''.
SEC. 20021. PUBLIC TRANSPORTATION SAFETY.

    (a) Public Transportation Safety Program.--Section 5329 of title 49, 
United States Code, is amended to read as follows:
``Sec. 5329. Public transportation safety program

    ``(a) Definition.--In this section, the term `recipient' means a 
State or local governmental authority, or any other operator of a public 
transportation system, that receives financial assistance under this 
chapter.
    ``(b) National Public Transportation Safety Plan.--
            ``(1) In general.--The Secretary shall create and implement 
        a national public transportation safety plan to improve the 
        safety of all public transportation systems that receive funding 
        under this chapter.
            ``(2) Contents of plan.--The national public transportation 
        safety plan under paragraph (1) shall include--
                    ``(A) safety performance criteria for all modes of 
                public transportation;
                    ``(B) the definition of the term `state of good 
                repair' established under section 5326(b);
                    ``(C) minimum safety performance standards for 
                public transportation vehicles used in revenue 
                operations that--
                          ``(i) do not apply to rolling stock otherwise 
                      regulated by the Secretary or any other Federal 
                      agency; and
                          ``(ii) to the extent practicable, take into 
                      consideration--
                                    ``(I) relevant recommendations of 
                                the National Transportation Safety 
                                Board; and
                                    ``(II) recommendations of, and best 
                                practices standards developed by, the 
                                public transportation industry; and
                    ``(D) a public transportation safety certification 
                training program, as described in subsection (c).

    ``(c) Public Transportation Safety Certification Training Program.--
            ``(1) In general.--The Secretary shall establish a public 
        transportation safety certification training program for Federal 
        and State employees, or other designated personnel, who conduct 
        safety audits and examinations of public transportation

[[Page 126 STAT. 710]]

        systems and employees of public transportation agencies directly 
        responsible for safety oversight.
            ``(2) <<NOTE: Deadline.>> Interim provisions.--Not later 
        than 90 days after the date of enactment of the Federal Public 
        Transportation Act of 2012, the Secretary shall establish 
        interim provisions for the certification and training of the 
        personnel described in paragraph (1), which shall be in effect 
        until the effective date of the final rule issued by the 
        Secretary to implement this subsection.

    ``(d) Public Transportation Agency Safety Plan.--
            ``(1) <<NOTE: Effective date. Certification.>> In general.--
        Effective 1 year after the effective date of a final rule issued 
        by the Secretary to carry out this subsection, each recipient or 
        State, as described in paragraph (3), shall certify that the 
        recipient or State has established a comprehensive agency safety 
        plan that includes, at a minimum--
                    ``(A) a requirement that the board of directors (or 
                equivalent entity) of the recipient approve the agency 
                safety plan and any updates to the agency safety plan;
                    ``(B) methods for identifying and evaluating safety 
                risks throughout all elements of the public 
                transportation system of the recipient;
                    ``(C) strategies to minimize the exposure of the 
                public, personnel, and property to hazards and unsafe 
                conditions;
                    ``(D) a process and timeline for conducting an 
                annual review and update of the safety plan of the 
                recipient;
                    ``(E) performance targets based on the safety 
                performance criteria and state of good repair standards 
                established under subparagraphs (A) and (B), 
                respectively, of subsection (b)(2);
                    ``(F) assignment of an adequately trained safety 
                officer who reports directly to the general manager, 
                president, or equivalent officer of the recipient; and
                    ``(G) a comprehensive staff training program for the 
                operations personnel and personnel directly responsible 
                for safety of the recipient that includes--
                          ``(i) the completion of a safety training 
                      program; and
                          ``(ii) continuing safety education and 
                      training.
            ``(2) Interim agency safety plan.--A system safety plan 
        developed pursuant to part 659 of title 49, Code of Federal 
        Regulations, as in effect on the date of enactment of the 
        Federal Public Transportation Act of 2012, shall remain in 
        effect until such time as this subsection takes effect.
            ``(3) Public transportation agency safety plan drafting and 
        certification.--
                    ``(A) Section 5311.--For a recipient receiving 
                assistance under section 5311, a State safety plan may 
                be drafted and certified by the recipient or a State.
                    ``(B) Section 5307.-- 
                <<NOTE: Deadline. Regulations.>> Not later than 120 days 
                after the date of enactment of the Federal Public 
                Transportation Act of 2012, the Secretary shall issue a 
                rule designating recipients of assistance under section 
                5307 that are small public transportation providers or 
                systems that may have their State safety plans drafted 
                or certified by a State.

    ``(e) State Safety Oversight Program.--

[[Page 126 STAT. 711]]

            ``(1) Applicability.--This subsection applies only to 
        eligible States.
            ``(2) Definition.--In this subsection, the term `eligible 
        State' means a State that has--
                    ``(A) a rail fixed guideway public transportation 
                system within the jurisdiction of the State that is not 
                subject to regulation by the Federal Railroad 
                Administration; or
                    ``(B) a rail fixed guideway public transportation 
                system in the engineering or construction phase of 
                development within the jurisdiction of the State that 
                will not be subject to regulation by the Federal 
                Railroad Administration.
            ``(3) <<NOTE: Effective date.>> In general.--In order to 
        obligate funds apportioned under section 5338 to carry out this 
        chapter, effective 3 years after the date on which a final rule 
        under this subsection becomes effective, an eligible State shall 
        have in effect a State safety oversight program approved by the 
        Secretary under which the State--
                    ``(A) assumes responsibility for overseeing rail 
                fixed guideway public transportation safety;
                    ``(B) adopts and enforces Federal and relevant State 
                laws on rail fixed guideway public transportation 
                safety;
                    ``(C) establishes a State safety oversight agency;
                    ``(D) <<NOTE: Determination.>> determines, in 
                consultation with the Secretary, an appropriate staffing 
                level for the State safety oversight agency that is 
                commensurate with the number, size, and complexity of 
                the rail fixed guideway public transportation systems in 
                the eligible State;
                    ``(E) requires that employees and other designated 
                personnel of the eligible State safety oversight agency 
                who are responsible for rail fixed guideway public 
                transportation safety oversight are qualified to perform 
                such functions through appropriate training, including 
                successful completion of the public transportation 
                safety certification training program established under 
                subsection (c); and
                    ``(F) prohibits any public transportation agency 
                from providing funds to the State safety oversight 
                agency or an entity designated by the eligible State as 
                the State safety oversight agency under paragraph (4).
            ``(4) State safety oversight agency.--
                    ``(A) In general.--Each State safety oversight 
                program shall establish a State safety oversight agency 
                that--
                          ``(i) is financially and legally independent 
                      from any public transportation entity that the 
                      State safety oversight agency oversees;
                          ``(ii) does not directly provide public 
                      transportation services in an area with a rail 
                      fixed guideway public transportation system 
                      subject to the requirements of this section;
                          ``(iii) does not employ any individual who is 
                      also responsible for the administration of rail 
                      fixed guideway public transportation programs 
                      subject to the requirements of this section;
                          ``(iv) has the authority to review, approve, 
                      oversee, and enforce the implementation by the 
                      rail fixed guideway public transportation agency 
                      of the public transportation agency safety plan 
                      required under subsection (d);

[[Page 126 STAT. 712]]

                          ``(v) has investigative and enforcement 
                      authority with respect to the safety of rail fixed 
                      guideway public transportation systems of the 
                      eligible State;
                          ``(vi) <<NOTE: Audits.>> audits, at least once 
                      triennially, the compliance of the rail fixed 
                      guideway public transportation systems in the 
                      eligible State subject to this subsection with the 
                      public transportation agency safety plan required 
                      under subsection (d); and
                          ``(vii) <<NOTE: Deadline. Reports.>> provides, 
                      at least once annually, a status report on the 
                      safety of the rail fixed guideway public 
                      transportation systems the State safety oversight 
                      agency oversees to--
                                    ``(I) the Federal Transit 
                                Administration;
                                    ``(II) the Governor of the eligible 
                                State; and
                                    ``(III) the board of directors, or 
                                equivalent entity, of any rail fixed 
                                guideway public transportation system 
                                that the State safety oversight agency 
                                oversees.
                    ``(B) Waiver.--At the request of an eligible State, 
                the Secretary may waive clauses (i) and (iii) of 
                subparagraph (A) for eligible States with 1 or more rail 
                fixed guideway systems in revenue operations, design, or 
                construction, that--
                          ``(i) have fewer than 1,000,000 combined 
                      actual and projected rail fixed guideway revenue 
                      miles per year; or
                          ``(ii) provide fewer than 10,000,000 combined 
                      actual and projected unlinked passenger trips per 
                      year.
            ``(5) Programs for multi-state rail fixed guideway public 
        transportation systems.--An eligible State that has within the 
        jurisdiction of the eligible State a rail fixed guideway public 
        transportation system that operates in more than 1 eligible 
        State shall--
                    ``(A) jointly with all other eligible States in 
                which the rail fixed guideway public transportation 
                system operates, ensure uniform safety standards and 
                enforcement procedures that shall be in compliance with 
                this section, and establish and implement a State safety 
                oversight program approved by the Secretary; or
                    ``(B) jointly with all other eligible States in 
                which the rail fixed guideway public transportation 
                system operates, designate an entity having 
                characteristics consistent with the characteristics 
                described in paragraph (3) to carry out the State safety 
                oversight program approved by the Secretary.
            ``(6) Grants.--
                    ``(A) In general.--The Secretary shall make grants 
                to eligible States to develop or carry out State safety 
                oversight programs under this subsection. Grant funds 
                may be used for program operational and administrative 
                expenses, including employee training activities.
                    ``(B) Apportionment.--
                          ``(i) Formula.--The amount made available for 
                      State safety oversight under section 5336(h) shall 
                      be apportioned among eligible States under a 
                      formula to be established by the Secretary. Such 
                      formula shall take into account fixed guideway 
                      vehicle revenue miles,

[[Page 126 STAT. 713]]

                      fixed guideway route miles, and fixed guideway 
                      vehicle passenger miles attributable to all rail 
                      fixed guideway systems not subject to regulation 
                      by the Federal Railroad Administration within each 
                      eligible State.
                          ``(ii) Administrative requirements.--Grant 
                      funds apportioned to States under this paragraph 
                      shall be subject to uniform administrative 
                      requirements for grants and cooperative agreements 
                      to State and local governments under part 18 of 
                      title 49, Code of Federal Regulations, and shall 
                      be subject to the requirements of this chapter as 
                      the Secretary determines appropriate.
                    ``(C) Government share.--
                          ``(i) In general.--The Government share of the 
                      reasonable cost of a State safety oversight 
                      program developed or carried out using a grant 
                      under this paragraph shall be 80 percent.
                          ``(ii) In-kind contributions.--Any calculation 
                      of the non-Government share of a State safety 
                      oversight program shall include in-kind 
                      contributions by an eligible State.
                          ``(iii) Non-government share.--The non-
                      Government share of the cost of a State safety 
                      oversight program developed or carried out using a 
                      grant under this paragraph may not be met by--
                                    ``(I) any Federal funds;
                                    ``(II) any funds received from a 
                                public transportation agency; or
                                    ``(III) any revenues earned by a 
                                public transportation agency.
                          ``(iv) Safety training program.--Recipients of 
                      funds made available to carry out sections 5307 
                      and 5311 may use not more than 0.5 percent of 
                      their formula funds to pay not more than 80 
                      percent of the cost of participation in the public 
                      transportation safety certification training 
                      program established under subsection (c), by an 
                      employee of a State safety oversight agency or a 
                      recipient who is directly responsible for safety 
                      oversight.
            ``(7) Certification process.--
                    ``(A) <<NOTE: Deadline. Determination.>> In 
                general.--Not later than 1 year after the date of 
                enactment of the Federal Public Transportation Act of 
                2012, the Secretary shall determine whether or not each 
                State safety oversight program meets the requirements of 
                this subsection and the State safety oversight program 
                is adequate to promote the purposes of this section.
                    ``(B) Issuance of certifications and denials.--The 
                Secretary shall issue a certification to each eligible 
                State that the Secretary determines under subparagraph 
                (A) adequately meets the requirements of this 
                subsection, and shall issue a denial of certification to 
                each eligible State that the Secretary determines under 
                subparagraph (A) does not adequately meet the 
                requirements of this subsection.

[[Page 126 STAT. 714]]

                    ``(C) <<NOTE: Notification.>> Disapproval.--If the 
                Secretary determines that a State safety oversight 
                program does not meet the requirements of this 
                subsection and denies certification, the Secretary shall 
                transmit to the eligible State a written explanation and 
                allow the eligible State to modify and resubmit the 
                State safety oversight program for approval.
                    ``(D) Failure to correct.--If the Secretary 
                determines that a modification by an eligible State of 
                the State safety oversight program is not sufficient to 
                certify the program, the Secretary--
                          ``(i) <<NOTE: Notification.>> shall notify the 
                      Governor of the eligible State of such denial of 
                      certification and failure to adequately modify the 
                      program, and shall request that the Governor take 
                      all possible actions to correct deficiencies in 
                      the program to ensure the certification of the 
                      program; and
                          ``(ii) may--
                                    ``(I) withhold funds available under 
                                paragraph (6) in an amount determined by 
                                the Secretary;
                                    ``(II) withhold not more than 5 
                                percent of the amount required to be 
                                appropriated for use in a State or 
                                urbanized area in the State under 
                                section 5307 of this title, until the 
                                State safety oversight program has been 
                                certified; or
                                    ``(III) require fixed guideway 
                                public transportation systems under such 
                                State safety oversight program to 
                                provide up to 100 percent of Federal 
                                assistance made available under this 
                                chapter only for safety-related 
                                improvements on such systems, until the 
                                State safety oversight program has been 
                                certified.
            ``(8) Evaluation of program and annual report.--The 
        Secretary shall continually evaluate the implementation of a 
        State safety oversight program by a State safety oversight 
        agency, and shall submit on or before July 1 of each year to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Transportation and Infrastructure of the 
        House of Representatives a report on--
                    ``(A) the amount of funds apportioned to each 
                eligible State; and
                    ``(B) the certification status of each State safety 
                oversight program, including what steps a State program 
                that has been denied certification must take in order to 
                be certified.
            ``(9) Federal oversight.--The Secretary shall--
                    ``(A) oversee the implementation of each State 
                safety oversight program under this subsection;
                    ``(B) <<NOTE: Audits.>> audit the operations of each 
                State safety oversight agency at least once triennially; 
                and
                    ``(C) <<NOTE: Regulations.>> issue rules to carry 
                out this subsection.

    ``(f) Authority of Secretary.--In carrying out this section, the 
Secretary may--
            ``(1) conduct inspections, investigations, audits, 
        examinations, and testing of the equipment, facilities, rolling 
        stock, and operations of the public transportation system of a 
        recipient;

[[Page 126 STAT. 715]]

            ``(2) make reports and issue directives with respect to the 
        safety of the public transportation system of a recipient;
            ``(3) <<NOTE: Determination.>> in conjunction with an 
        accident investigation or an investigation into a pattern or 
        practice of conduct that negatively affects public safety, issue 
        a subpoena to, and take the deposition of, any employee of a 
        recipient or a State safety oversight agency, if--
                    ``(A) before the issuance of the subpoena, the 
                Secretary requests a determination by the Attorney 
                General of the United States as to whether the subpoena 
                will interfere with an ongoing criminal investigation; 
                and
                    ``(B) the Attorney General--
                          ``(i) determines that the subpoena will not 
                      interfere with an ongoing criminal investigation; 
                      or
                          ``(ii) <<NOTE: Time period.>> fails to make a 
                      determination under clause (i) before the date 
                      that is 30 days after the date on which the 
                      Secretary makes a request under subparagraph (A);
            ``(4) require the production of documents by, and prescribe 
        recordkeeping and reporting requirements for, a recipient or a 
        State safety oversight agency;
            ``(5) investigate public transportation accidents and 
        incidents and provide guidance to recipients regarding 
        prevention of accidents and incidents;
            ``(6) at reasonable times and in a reasonable manner, enter 
        and inspect equipment, facilities, rolling stock, operations, 
        and relevant records of the public transportation system of a 
        recipient; and
            ``(7) issue rules to carry out this section.

    ``(g) Enforcement Actions.--
            ``(1) Types of enforcement actions.--The Secretary may take 
        enforcement action against an eligible State, as defined in 
        subsection (e), that does not comply with Federal law with 
        respect to the safety of the public transportation system, 
        including--
                    ``(A) issuing directives;
                    ``(B) requiring more frequent oversight of the 
                recipient by a State safety oversight agency or the 
                Secretary;
                    ``(C) imposing more frequent reporting requirements; 
                and
                    ``(D) requiring that any Federal financial 
                assistance provided under this chapter be spent on 
                correcting safety deficiencies identified by the 
                Secretary or the State safety oversight agency before 
                such funds are spent on other projects.
            ``(2) Use or withholding of funds.--
                    ``(A) In general.--The Secretary may require the use 
                of funds in accordance with paragraph (1)(D) only if the 
                Secretary finds that a recipient is engaged in a pattern 
                or practice of serious safety violations or has 
                otherwise refused to comply with Federal law relating to 
                the safety of the public transportation system.
                    ``(B) Notice.--Before withholding funds from a 
                recipient, the Secretary shall provide to the 
                recipient--
                          ``(i) written notice of a violation and the 
                      amount proposed to be withheld; and

[[Page 126 STAT. 716]]

                          ``(ii) a reasonable period of time within 
                      which the recipient may address the violation or 
                      propose and initiate an alternative means of 
                      compliance that the Secretary determines is 
                      acceptable.

    ``(h) Cost-benefit Analysis.--
            ``(1) Analysis required.--In carrying out this section, the 
        Secretary shall take into consideration the costs and benefits 
        of each action the Secretary proposes to take under this 
        section.
            ``(2) Waiver.--The Secretary may waive the requirement under 
        this subsection if the Secretary determines that such a waiver 
        is in the public interest.

    ``(i) Consultation by the Secretary of Homeland Security.--The 
Secretary of Homeland Security shall consult with the Secretary of 
Transportation before the Secretary of Homeland Security issues a rule 
or order that the Secretary of Transportation determines affects the 
safety of public transportation design, construction, or operations.
    ``(j) Actions Under State Law.--
            ``(1) Rule of construction.--Nothing in this section shall 
        be construed to preempt an action under State law seeking 
        damages for personal injury, death, or property damage alleging 
        that a party has failed to comply with--
                    ``(A) a Federal standard of care established by a 
                regulation or order issued by the Secretary under this 
                section; or
                    ``(B) its own program, rule, or standard that it 
                created pursuant to a rule or order issued by the 
                Secretary.
            ``(2) <<NOTE: Applicability.>> Effective date.--This 
        subsection shall apply to any cause of action under State law 
        arising from an event or activity occurring on or after the date 
        of enactment of the Federal Public Transportation Act of 2012.
            ``(3) Jurisdiction.--Nothing in this section shall be 
        construed to create a cause of action under Federal law on 
        behalf of an injured party or confer Federal question 
        jurisdiction for a State law cause of action.

    ``(k) National Public Transportation Safety Report.--Not later than 
3 years after the date of enactment of the Federal Public Transportation 
Act of 2012, the Secretary shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives a 
report that--
            ``(1) analyzes public transportation safety trends among the 
        States and documents the most effective safety programs 
        implemented using grants under this section; and
            ``(2) describes the effect on public transportation safety 
        of activities carried out using grants under this section.''.

    (b) Bus Safety Study.--
            (1) Definition.--In this subsection, the term ``highway 
        route'' means a route where 50 percent or more of the route is 
        on roads having a speed limit of more than 45 miles per hour.
            (2) <<NOTE: Deadline. Reports.>> Study.--Not later than 180 
        days after the date of enactment of this Act, the Secretary of 
        Transportation shall submit to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report that--

[[Page 126 STAT. 717]]

                    (A) examines the safety of public transportation 
                buses that travel on highway routes;
                    (B) examines laws and regulations that apply to 
                commercial over-the-road buses; and
                    (C) makes recommendations as to whether additional 
                safety measures should be required for public 
                transportation buses that travel on highway routes.
SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING.

    Section 5331 of title 49, United States Code, is amended by striking 
subsection (g) and inserting the following:
    ``(g) Conditions on Federal Assistance.--
            ``(1) <<NOTE: Regulations.>> Ineligibility for assistance.--
        A person that receives funds under this chapter is not eligible 
        for financial assistance under section 5307, 5309, or 5311 of 
        this title if the person is required, under regulations the 
        Secretary prescribes under this section, to establish a program 
        of alcohol and controlled substances testing and does not 
        establish the program in accordance with this section.
            ``(2) Additional remedies.--If the Secretary determines that 
        a person that receives funds under this chapter is not in 
        compliance with regulations prescribed under this section, the 
        Secretary may bar the person from receiving Federal transit 
        assistance in an amount the Secretary considers appropriate.''.
SEC. 20023. NONDISCRIMINATION.

    (a) Amendments.--Section 5332 of title 49, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) by striking ``creed'' and inserting 
                ``religion''; and
                    (B) by inserting ``disability,'' after ``sex,''; and
            (2) in subsection (d)(3), by striking ``and'' and inserting 
        ``or''.

    (b) Evaluation and Report.--
            (1) Evaluation.--The Comptroller General of the United 
        States shall evaluate the progress and effectiveness of the 
        Federal Transit Administration in assisting recipients of 
        assistance under chapter 53 of title 49, United States Code, to 
        comply with section 5332(b) of title 49, including--
                    (A) by reviewing discrimination complaints, reports, 
                and other relevant information collected or prepared by 
                the Federal Transit Administration or recipients of 
                assistance from the Federal Transit Administration 
                pursuant to any applicable civil rights statute, 
                regulation, or other requirement; and
                    (B) by reviewing the process that the Federal 
                Transit Administration uses to resolve discrimination 
                complaints filed by members of the public.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives a report concerning the evaluation 
        under paragraph (1) that includes--
                    (A) a description of the ability of the Federal 
                Transit Administration to address discrimination and 
                foster equal opportunities in federally funded public 
                transportation projects, programs, and activities;

[[Page 126 STAT. 718]]

                    (B) recommendations for improvements if the 
                Comptroller General determines that improvements are 
                necessary; and
                    (C) information upon which the evaluation under 
                paragraph (1) is based.
SEC. 20024. ADMINISTRATIVE PROVISIONS.

    Section 5334 of title 49, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``under sections 5307 
        and 5309-5311 of this title'' and inserting ``that receives 
        Federal financial assistance under this chapter'';
            (2) in subsection (b)(1)--
                    (A) by inserting after ``emergency,'' the following: 
                ``or for purposes of establishing and enforcing a 
                program to improve the safety of public transportation 
                systems in the United States as described in section 
                5329,''; and
                    (B) by striking ``chapter, nor may the Secretary'' 
                and inserting ``chapter. The Secretary may not'';
            (3) in subsection (c)(4), by striking ``section (except 
        subsection (i)) and sections 5318(e), 5323(a)(2), 5325(a), 
        5325(b), and 5325(f)'' and inserting ``subsection'';
            (4) in subsection (h)(3), by striking ``another'' and 
        inserting ``any other'';
            (5) in subsection (i)(1), by striking ``title 23 shall'' and 
        inserting ``title 23 may'';
            (6) by striking subsection (j); and
            (7) by redesignating subsections (k) and (l) as subsections 
        (j) and (k), respectively.
SEC. 20025. NATIONAL TRANSIT DATABASE.

    (a) Amendments.--Section 5335 of title 49, United States Code, is 
amended--
            (1) in subsection (a), by striking ``public transportation 
        financial and operating information'' and inserting ``public 
        transportation financial, operating, and asset condition 
        information''; and
            (2) by adding at the end the following:

    ``(c) Data Required to Be Reported.--The recipient of a grant under 
this chapter shall report to the Secretary, for inclusion in the 
National Transit Database, any information relating to a transit asset 
inventory or condition assessment conducted by the recipient.''.
    (b) <<NOTE: 49 USC 5335 note.>> Data Accuracy and Reliability.--The 
Secretary shall--
            (1) develop and implement appropriate internal control 
        activities to ensure that public transportation safety incident 
        data is reported accurately and reliably by public 
        transportation systems and State safety oversight agencies to 
        the State Safety Oversight Rail Accident Database; and
            (2) <<NOTE: Reports. Deadline.>> report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives within 1 year of enactment of the Federal Public 
        Transportation Act of 2012 on the steps taken to improve the 
        accuracy and reliability of public transportation safety 
        incident data reported to the State Safety Oversight Rail 
        Accident Database.

[[Page 126 STAT. 719]]

SEC. 20026. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS.

    Section 5336 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5336. Apportionment of appropriations for formula grants

    ``(a) Based on Urbanized Area Population.--Of the amount apportioned 
under subsection (h)(4) to carry out section 5307--
            ``(1) 9.32 percent shall be apportioned each fiscal year 
        only in urbanized areas with a population of less than 200,000 
        so that each of those areas is entitled to receive an amount 
        equal to--
                    ``(A) 50 percent of the total amount apportioned 
                multiplied by a ratio equal to the population of the 
                area divided by the total population of all urbanized 
                areas with populations of less than 200,000 as shown in 
                the most recent decennial census; and
                    ``(B) 50 percent of the total amount apportioned 
                multiplied by a ratio for the area based on population 
                weighted by a factor, established by the Secretary, of 
                the number of inhabitants in each square mile; and
            ``(2) 90.68 percent shall be apportioned each fiscal year 
        only in urbanized areas with populations of at least 200,000 as 
        provided in subsections (b) and (c) of this section.

    ``(b) Based on Fixed Guideway Vehicle Revenue Miles, Directional 
Route Miles, and Passenger Miles.--(1) In this subsection, `fixed 
guideway vehicle revenue miles' and `fixed guideway directional route 
miles' include passenger ferry operations directly or under contract by 
the designated recipient.
    ``(2) Of the amount apportioned under subsection (a)(2) of this 
section, 33.29 percent shall be apportioned as follows:
            ``(A) 95.61 percent of the total amount apportioned under 
        this subsection shall be apportioned so that each urbanized area 
        with a population of at least 200,000 is entitled to receive an 
        amount equal to--
                    ``(i) 60 percent of the 95.61 percent apportioned 
                under this subparagraph multiplied by a ratio equal to 
                the number of fixed guideway vehicle revenue miles 
                attributable to the area, as established by the 
                Secretary, divided by the total number of all fixed 
                guideway vehicle revenue miles attributable to all 
                areas; and
                    ``(ii) 40 percent of the 95.61 percent apportioned 
                under this subparagraph multiplied by a ratio equal to 
                the number of fixed guideway directional route miles 
                attributable to the area, established by the Secretary, 
                divided by the total number of all fixed guideway 
                directional route miles attributable to all areas.
        An urbanized area with a population of at least 750,000 in which 
        commuter rail transportation is provided shall receive at least 
        .75 percent of the total amount apportioned under this 
        subparagraph.
            ``(B) 4.39 percent of the total amount apportioned under 
        this subsection shall be apportioned so that each urbanized area 
        with a population of at least 200,000 is entitled to receive an 
        amount equal to--
                    ``(i) the number of fixed guideway vehicle passenger 
                miles traveled multiplied by the number of fixed 
                guideway

[[Page 126 STAT. 720]]

                vehicle passenger miles traveled for each dollar of 
                operating cost in an area; divided by
                    ``(ii) the total number of fixed guideway vehicle 
                passenger miles traveled multiplied by the total number 
                of fixed guideway vehicle passenger miles traveled for 
                each dollar of operating cost in all areas.
        An urbanized area with a population of at least 750,000 in which 
        commuter rail transportation is provided shall receive at least 
        .75 percent of the total amount apportioned under this 
        subparagraph.
            ``(C) Under subparagraph (A) of this paragraph, fixed 
        guideway vehicle revenue or directional route miles, and 
        passengers served on those miles, in an urbanized area with a 
        population of less than 200,000, where the miles and passengers 
        served otherwise would be attributable to an urbanized area with 
        a population of at least 1,000,000 in an adjacent State, are 
        attributable to the governmental authority in the State in which 
        the urbanized area with a population of less than 200,000 is 
        located. The authority is deemed an urbanized area with a 
        population of at least 200,000 if the authority makes a contract 
        for the service.
            ``(D) A recipient's apportionment under subparagraph (A)(i) 
        of this paragraph may not be reduced if the recipient, after 
        satisfying the Secretary that energy or operating efficiencies 
        would be achieved, reduces vehicle revenue miles but provides 
        the same frequency of revenue service to the same number of 
        riders.
            ``(E) For purposes of subparagraph (A) and section 
        5337(c)(3), the Secretary shall deem to be attributable to an 
        urbanized area not less than 22.27 percent of the fixed guideway 
        vehicle revenue miles or fixed guideway directional route miles 
        in the public transportation system of a recipient that are 
        located outside the urbanized area for which the recipient 
        receives funds, in addition to the fixed guideway vehicle 
        revenue miles or fixed guideway directional route miles of the 
        recipient that are located inside the urbanized area.

    ``(c) Based on Bus Vehicle Revenue Miles and Passenger Miles.--Of 
the amount apportioned under subsection (a)(2) of this section, 66.71 
percent shall be apportioned as follows:
            ``(1) 90.8 percent of the total amount apportioned under 
        this subsection shall be apportioned as follows:
                    ``(A) 73.39 percent of the 90.8 percent apportioned 
                under this paragraph shall be apportioned so that each 
                urbanized area with a population of at least 1,000,000 
                is entitled to receive an amount equal to--
                          ``(i) 50 percent of the 73.39 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio equal to the total bus vehicle revenue 
                      miles operated in or directly serving the 
                      urbanized area divided by the total bus vehicle 
                      revenue miles attributable to all areas;
                          ``(ii) 25 percent of the 73.39 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio equal to the population of the area 
                      divided by the total population of all areas, as 
                      shown in the most recent decennial census; and

[[Page 126 STAT. 721]]

                          ``(iii) 25 percent of the 73.39 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio for the area based on population weighted 
                      by a factor, established by the Secretary, of the 
                      number of inhabitants in each square mile.
                    ``(B) 26.61 percent of the 90.8 percent apportioned 
                under this paragraph shall be apportioned so that each 
                urbanized area with a population of at least 200,000 but 
                not more than 999,999 is entitled to receive an amount 
                equal to--
                          ``(i) 50 percent of the 26.61 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio equal to the total bus vehicle revenue 
                      miles operated in or directly serving the 
                      urbanized area divided by the total bus vehicle 
                      revenue miles attributable to all areas;
                          ``(ii) 25 percent of the 26.61 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio equal to the population of the area 
                      divided by the total population of all areas, as 
                      shown by the most recent decennial census; and
                          ``(iii) 25 percent of the 26.61 percent 
                      apportioned under this subparagraph multiplied by 
                      a ratio for the area based on population weighted 
                      by a factor, established by the Secretary, of the 
                      number of inhabitants in each square mile.
            ``(2) 9.2 percent of the total amount apportioned under this 
        subsection shall be apportioned so that each urbanized area with 
        a population of at least 200,000 is entitled to receive an 
        amount equal to--
                    ``(A) the number of bus passenger miles traveled 
                multiplied by the number of bus passenger miles traveled 
                for each dollar of operating cost in an area; divided by
                    ``(B) the total number of bus passenger miles 
                traveled multiplied by the total number of bus passenger 
                miles traveled for each dollar of operating cost in all 
                areas.

    ``(d) <<NOTE: Deadline.>> Date of Apportionment.--The Secretary 
shall--
            ``(1) apportion amounts appropriated under section 
        5338(a)(2)(C) of this title to carry out section 5307 of this 
        title not later than the 10th day after the date the amounts are 
        appropriated or October 1 of the fiscal year for which the 
        amounts are appropriated, whichever is later; and
            ``(2) <<NOTE: Publication.>> publish apportionments of the 
        amounts, including amounts attributable to each urbanized area 
        with a population of more than 50,000 and amounts attributable 
        to each State of a multistate urbanized area, on the 
        apportionment date.

    ``(e) Amounts Not Apportioned to Designated Recipients.--The 
Governor of a State may expend in an urbanized area with a population of 
less than 200,000 an amount apportioned under this section that is not 
apportioned to a designated recipient, as defined in section 5302(4).
    ``(f) Transfers of Apportionments.--(1) The Governor of a State may 
transfer any part of the State's apportionment under subsection (a)(1) 
of this section to supplement amounts apportioned to the State under 
section 5311(c)(3). <<NOTE: Consultation.>> The Governor may make a 
transfer only after consulting with responsible local officials and

[[Page 126 STAT. 722]]

publicly owned operators of public transportation in each area for which 
the amount originally was apportioned under this section.

    ``(2) The Governor of a State may transfer any part of the State's 
apportionment under section 5311(c)(3) to supplement amounts apportioned 
to the State under subsection (a)(1) of this section.
    ``(3) <<NOTE: Time period.>> The Governor of a State may use 
throughout the State amounts of a State's apportionment remaining 
available for obligation at the beginning of the 90-day period before 
the period of the availability of the amounts expires.

    ``(4) A designated recipient for an urbanized area with a population 
of at least 200,000 may transfer a part of its apportionment under this 
section to the Governor of a State. The Governor shall distribute the 
transferred amounts to urbanized areas under this section.
    ``(5) <<NOTE: Applicability.>> Capital and operating assistance 
limitations applicable to the original apportionment apply to amounts 
transferred under this subsection.

    ``(g) Period of Availability to Recipients.--An amount apportioned 
under this section may be obligated by the recipient for 5 years after 
the fiscal year in which the amount is apportioned. Not later than 
30 <<NOTE: Deadline.>> days after the end of the 5-year period, an 
amount that is not obligated at the end of that period shall be added to 
the amount that may be apportioned under this section in the next fiscal 
year.

    ``(h) Apportionments.--Of the amounts made available for each fiscal 
year under section 5338(a)(2)(C)--
            ``(1) $30,000,000 shall be set aside to carry out section 
        5307(h);
            ``(2) 3.07 percent shall be apportioned to urbanized areas 
        in accordance with subsection (j);
            ``(3) of amounts not apportioned under paragraphs (1) and 
        (2), 1.5 percent shall be apportioned to urbanized areas with 
        populations of less than 200,000 in accordance with subsection 
        (i);
            ``(4) 0.5 percent shall be apportioned to eligible States 
        for State safety oversight program grants in accordance with 
        section 5329(e)(6); and
            ``(5) any amount not apportioned under paragraphs (1), (2), 
        (3), and (4) shall be apportioned to urbanized areas in 
        accordance with subsections (a) through (c).

    ``(i) Small Transit Intensive Cities Formula.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Eligible area.--The term `eligible area' means 
                an urbanized area with a population of less than 200,000 
                that meets or exceeds in one or more performance 
                categories the industry average for all urbanized areas 
                with a population of at least 200,000 but not more than 
                999,999, as determined by the Secretary in accordance 
                with subsection (c)(2).
                    ``(B) Performance category.--The term `performance 
                category' means each of the following:
                          ``(i) Passenger miles traveled per vehicle 
                      revenue mile.
                          ``(ii) Passenger miles traveled per vehicle 
                      revenue hour.

[[Page 126 STAT. 723]]

                          ``(iii) Vehicle revenue miles per capita.
                          ``(iv) Vehicle revenue hours per capita.
                          ``(v) Passenger miles traveled per capita.
                          ``(vi) Passengers per capita.
            ``(2) Apportionment.--
                    ``(A) Apportionment formula.--The amount to be 
                apportioned under subsection (h)(3) shall be apportioned 
                among eligible areas in the ratio that--
                          ``(i) the number of performance categories for 
                      which each eligible area meets or exceeds the 
                      industry average in urbanized areas with a 
                      population of at least 200,000 but not more than 
                      999,999; bears to
                          ``(ii) the aggregate number of performance 
                      categories for which all eligible areas meet or 
                      exceed the industry average in urbanized areas 
                      with a population of at least 200,000 but not more 
                      than 999,999.
                    ``(B) Data used in formula.--The Secretary shall 
                calculate apportionments under this subsection for a 
                fiscal year using data from the national transit 
                database used to calculate apportionments for that 
                fiscal year under this section.

    ``(j) Apportionment Formula.--The amounts apportioned under 
subsection (h)(2) shall be apportioned among urbanized areas as follows:
            ``(1) 75 percent of the funds shall be apportioned among 
        designated recipients for urbanized areas with a population of 
        200,000 or more in the ratio that--
                    ``(A) the number of eligible low-income individuals 
                in each such urbanized area; bears to
                    ``(B) the number of eligible low-income individuals 
                in all such urbanized areas.
            ``(2) 25 percent of the funds shall be apportioned among 
        designated recipients for urbanized areas with a population of 
        less than 200,000 in the ratio that--
                    ``(A) the number of eligible low-income individuals 
                in each such urbanized area; bears to
                    ``(B) the number of eligible low-income individuals 
                in all such urbanized areas.''.
SEC. 20027. STATE OF GOOD REPAIR GRANTS.

    Section 5337 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5337. State of good repair grants

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Fixed guideway.--The term `fixed guideway' means a 
        public transportation facility--
                    ``(A) using and occupying a separate right-of-way 
                for the exclusive use of public transportation;
                    ``(B) using rail;
                    ``(C) using a fixed catenary system;
                    ``(D) for a passenger ferry system; or
                    ``(E) for a bus rapid transit system.
            ``(2) State.--The term `State' means the 50 States, the 
        District of Columbia, and Puerto Rico.

[[Page 126 STAT. 724]]

            ``(3) State of good repair.--The term `state of good repair' 
        has the meaning given that term by the Secretary, by rule, under 
        section 5326(b).
            ``(4) Transit asset management plan.--The term `transit 
        asset management plan' means a plan developed by a recipient of 
        funding under this chapter that--
                    ``(A) includes, at a minimum, capital asset 
                inventories and condition assessments, decision support 
                tools, and investment prioritization; and
                    ``(B) the recipient certifies that the recipient 
                complies with the rule issued under section 5326(d).

    ``(b) General Authority.--
            ``(1) Eligible projects.--The Secretary may make grants 
        under this section to assist State and local governmental 
        authorities in financing capital projects to maintain public 
        transportation systems in a state of good repair, including 
        projects to replace and rehabilitate--
                    ``(A) rolling stock;
                    ``(B) track;
                    ``(C) line equipment and structures;
                    ``(D) signals and communications;
                    ``(E) power equipment and substations;
                    ``(F) passenger stations and terminals;
                    ``(G) security equipment and systems;
                    ``(H) maintenance facilities and equipment;
                    ``(I) operational support equipment, including 
                computer hardware and software;
                    ``(J) development and implementation of a transit 
                asset management plan; and
                    ``(K) other replacement and rehabilitation projects 
                the Secretary determines appropriate.
            ``(2) Inclusion in plan.--A recipient shall include a 
        project carried out under paragraph (1) in the transit asset 
        management plan of the recipient upon completion of the plan.

    ``(c) High Intensity Fixed Guideway State of Good Repair Formula.--
            ``(1) In general.--Of the amount authorized or made 
        available under section 5338(a)(2)(I), 97.15 percent shall be 
        apportioned to recipients in accordance with this subsection.
            ``(2) Area share.--
                    ``(A) In general.--50 percent of the amount 
                described in paragraph (1) shall be apportioned for 
                fixed guideway systems in accordance with this 
                paragraph.
                    ``(B) Share.--A recipient shall receive an amount 
                equal to the amount described in subparagraph (A), 
                multiplied by the amount the recipient would have 
                received under this section, as in effect for fiscal 
                year 2011, if the amount had been calculated in 
                accordance with section 5336(b)(1) and using the 
                definition of the term `fixed guideway' under subsection 
                (a) of this section, as such sections are in effect on 
                the day after the date of enactment of the Federal 
                Public Transportation Act of 2012, and divided by the 
                total amount apportioned for all areas under this 
                section for fiscal year 2011.
                    ``(C) <<NOTE: Definition.>>  Recipient.--For 
                purposes of this paragraph, the term `recipient' means 
                an entity that received funding under this section, as 
                in effect for fiscal year 2011.

[[Page 126 STAT. 725]]

            ``(3) Vehicle revenue miles and directional route miles.--
                    ``(A) In general.--50 percent of the amount 
                described in paragraph (1) shall be apportioned to 
                recipients in accordance with this paragraph.
                    ``(B) Vehicle revenue miles.--A recipient in an 
                urbanized area shall receive an amount equal to 60 
                percent of the amount described in subparagraph (A), 
                multiplied by the number of fixed guideway vehicle 
                revenue miles attributable to the urbanized area, as 
                established by the Secretary, divided by the total 
                number of all fixed guideway vehicle revenue miles 
                attributable to all urbanized areas.
                    ``(C) Directional route miles.--A recipient in an 
                urbanized area shall receive an amount equal to 40 
                percent of the amount described in subparagraph (A), 
                multiplied by the number of fixed guideway directional 
                route miles attributable to the urbanized area, as 
                established by the Secretary, divided by the total 
                number of all fixed guideway directional route miles 
                attributable to all urbanized areas.
            ``(4) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the share of the total amount 
                apportioned under this subsection that is apportioned to 
                an area under this subsection shall not decrease by more 
                than 0.25 percentage points compared to the share 
                apportioned to the area under this subsection in the 
                previous fiscal year.
                    ``(B) Special rule for fiscal year 2013.--In fiscal 
                year 2013, the share of the total amount apportioned 
                under this subsection that is apportioned to an area 
                under this subsection shall not decrease by more than 
                0.25 percentage points compared to the share that would 
                have been apportioned to the area under this section, as 
                in effect for fiscal year 2011, if the share had been 
                calculated using the definition of the term `fixed 
                guideway' under subsection (a) of this section, as in 
                effect on the day after the date of enactment of the 
                Federal Public Transportation Act of 2012.
            ``(5) Use of funds.--Amounts made available under this 
        subsection shall be available for the exclusive use of fixed 
        guideway projects.
            ``(6) Receiving apportionment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for an area with a fixed guideway 
                system, the amounts provided under this subsection shall 
                be apportioned to the designated recipient for the 
                urbanized area in which the system operates.
                    ``(B) Exception.--An area described in the amendment 
                made by section 3028(a) of the Transportation Equity Act 
                for the 21st Century (Public Law 105-178; 112 Stat. 366) 
                shall receive an individual apportionment under this 
                subsection.
            ``(7) <<NOTE: Deadline.>> Apportionment requirements.--For 
        purposes of determining the number of fixed guideway vehicle 
        revenue miles or fixed guideway directional route miles 
        attributable to an urbanized area for a fiscal year under this 
        subsection, only segments of fixed guideway systems placed in 
        revenue

[[Page 126 STAT. 726]]

        service not later than 7 years before the first day of the 
        fiscal year shall be deemed to be attributable to an urbanized 
        area.

    ``(d) High Intensity Motorbus State of Good Repair.--
            ``(1) Definition.--For purposes of this subsection, the term 
        `high intensity motorbus' means public transportation that is 
        provided on a facility with access for other high-occupancy 
        vehicles.
            ``(2) Apportionment.--Of the amount authorized or made 
        available under section 5338(a)(2)(I), 2.85 percent shall be 
        apportioned to urbanized areas for high intensity motorbus state 
        of good repair in accordance with this subsection.
            ``(3) Vehicle revenue miles and directional route miles.--
                    ``(A) In general.--The amount described in paragraph 
                (2) shall be apportioned to each area in accordance with 
                this paragraph.
                    ``(B) Vehicle revenue miles.--Each area shall 
                receive an amount equal to 60 percent of the amount 
                described in subparagraph (A), multiplied by the number 
                of high intensity motorbus vehicle revenue miles 
                attributable to the area, as established by the 
                Secretary, divided by the total number of all high 
                intensity motorbus vehicle revenue miles attributable to 
                all areas.
                    ``(C) Directional route miles.--Each area shall 
                receive an amount equal to 40 percent of the amount 
                described in subparagraph (A), multiplied by the number 
                of high intensity motorbus directional route miles 
                attributable to the area, as established by the 
                Secretary, divided by the total number of all high 
                intensity motorbus directional route miles attributable 
                to all areas.
            ``(4) <<NOTE: Deadline.>> Apportionment requirements.--For 
        purposes of determining the number of high intensity motorbus 
        vehicle revenue miles or high intensity motorbus directional 
        route miles attributable to an urbanized area for a fiscal year 
        under this subsection, only segments of high intensity motorbus 
        systems placed in revenue service not later than 7 years before 
        the first day of the fiscal year shall be deemed to be 
        attributable to an urbanized area.''.
SEC. 20028. AUTHORIZATIONS.

    Section 5338 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5338. Authorizations

    ``(a) Formula Grants.--
            ``(1) In general.--There shall be available from the Mass 
        Transit Account of the Highway Trust Fund to carry out sections 
        5305, 5307, 5310, 5311, 5318, 5322(d), 5335, 5337, 5339, and 
        5340, and section 20005(b) of the Federal Public Transportation 
        Act of 2012, $8,478,000,000 for fiscal year 2013 and 
        $8,595,000,000 for fiscal year 2014.
            ``(2) Allocation of funds.--Of the amounts made available 
        under paragraph (1)--
                    ``(A) $126,900,000 for fiscal year 2013 and 
                $128,800,000 for fiscal year 2014 shall be available to 
                carry out section 5305;

[[Page 126 STAT. 727]]

                    ``(B) $10,000,000 for each of fiscal years 2013 and 
                2014 shall be available to carry out section 20005(b) of 
                the Federal Public Transportation Act of 2012;
                    ``(C) $4,397,950,000 for fiscal year 2013 and 
                $4,458,650,000 for fiscal year 2014 shall be allocated 
                in accordance with section 5336 to provide financial 
                assistance for urbanized areas under section 5307;
                    ``(D) $254,800,000 for fiscal year 2013 and 
                $258,300,000 for fiscal year 2014 shall be available to 
                provide financial assistance for services for the 
                enhanced mobility of seniors and individuals with 
                disabilities under section 5310;
                    ``(E) $599,500,000 for fiscal year 2013 and 
                $607,800,000 for fiscal year 2014 shall be available to 
                provide financial assistance for rural areas under 
                section 5311, of which not less than $30,000,000 for 
                fiscal year 2013 and $30,000,000 for fiscal year 2014 
                shall be available to carry out section 5311(c)(1) and 
                $20,000,000 for fiscal year 2013 and $20,000,000 for 
                fiscal year 2014 shall be available to carry out section 
                5311(c)(2);
                    ``(F) $3,000,000 for each of fiscal years 2013 and 
                2014 shall be available for bus testing under section 
                5318;
                    ``(G) $5,000,000 for each of fiscal years 2013 and 
                2014 shall be available for the national transit 
                institute under section 5322(d);
                    ``(H) $3,850,000 for each of fiscal years 2013 and 
                2014 shall be available to carry out section 5335;
                    ``(I) $2,136,300,000 for fiscal year 2013 and 
                $2,165,900,000 for fiscal year 2014 shall be available 
                to carry out section 5337;
                    ``(J) $422,000,000 for fiscal year 2013 and 
                $427,800,000 for fiscal year 2014 shall be available for 
                the bus and bus facilities program under section 5339; 
                and
                    ``(K) $518,700,000 for fiscal year 2013 and 
                $525,900,000 for fiscal year 2014 shall be allocated in 
                accordance with section 5340 to provide financial 
                assistance for urbanized areas under section 5307 and 
                rural areas under section 5311.

    ``(b) Research, Development Demonstration and Deployment Projects.--
There are authorized to be appropriated to carry out section 5312, 
$70,000,000 for fiscal year 2013 and $70,000,000 for fiscal year 2014.
    ``(c) Transit Cooperative Research Program.--There are authorized to 
be appropriated to carry out section 5313, $7,000,000 for fiscal year 
2013 and $7,000,000 for fiscal year 2014.
    ``(d) Technical Assistance and Standards Development.--There are 
authorized to be appropriated to carry out section 5314, $7,000,000 for 
fiscal year 2013 and $7,000,000 for fiscal year 2014.
    ``(e) Human Resources and Training.--There are authorized to be 
appropriated to carry out subsections (a), (b), (c), and (e) of section 
5322, $5,000,000 for fiscal year 2013 and $5,000,000 for fiscal year 
2014.
    ``(f) Emergency Relief Program.--There are authorized to be 
appropriated such sums as are necessary to carry out section 5324.
    ``(g) Capital Investment Grants.--There are authorized to be 
appropriated to carry out section 5309, $1,907,000,000 for fiscal year 
2013 and $1,907,000,000 for fiscal year 2014.

[[Page 126 STAT. 728]]

    ``(h) Administration.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out section 5334, $104,000,000 for fiscal year 2013 and 
        $104,000,000 for fiscal year 2014.
            ``(2) Section 5329.--Of the amounts authorized to be 
        appropriated under paragraph (1), not less than $5,000,000 shall 
        be available to carry out section 5329.
            ``(3) Section 5326.--Of the amounts made available under 
        paragraph (2), not less than $1,000,000 shall be available to 
        carry out section 5326.

    ``(i) Oversight.--
            ``(1) In general.--Of the amounts made available to carry 
        out this chapter for a fiscal year, the Secretary may use not 
        more than the following amounts for the activities described in 
        paragraph (2):
                    ``(A) 0.5 percent of amounts made available to carry 
                out section 5305.
                    ``(B) 0.75 percent of amounts made available to 
                carry out section 5307.
                    ``(C) 1 percent of amounts made available to carry 
                out section 5309.
                    ``(D) 1 percent of amounts made available to carry 
                out section 601 of the Passenger Rail Investment and 
                Improvement Act of 2008 (Public Law 110-432; 126 Stat. 
                4968).
                    ``(E) 0.5 percent of amounts made available to carry 
                out section 5310.
                    ``(F) 0.5 percent of amounts made available to carry 
                out section 5311.
                    ``(G) 0.75 percent of amounts made available to 
                carry out section 5337(c).
            ``(2) Activities.--The activities described in this 
        paragraph are as follows:
                    ``(A) Activities to oversee the construction of a 
                major capital project.
                    ``(B) Activities to review and audit the safety and 
                security, procurement, management, and financial 
                compliance of a recipient or subrecipient of funds under 
                this chapter.
                    ``(C) Activities to provide technical assistance 
                generally, and to provide technical assistance to 
                correct deficiencies identified in compliance reviews 
                and audits carried out under this section.
            ``(3) <<NOTE: Contracts.>> Government share of costs.--The 
        Government shall pay the entire cost of carrying out a contract 
        under this subsection.
            ``(4) Availability of certain funds.--Funds made available 
        under paragraph (1)(C) shall be made available to the Secretary 
        before allocating the funds appropriated to carry out any 
        project under a full funding grant agreement.

    ``(j) Grants as Contractual Obligations.--
            ``(1) Grants financed from highway trust fund.--A grant or 
        contract that is approved by the Secretary and financed with 
        amounts made available from the Mass Transit Account of the 
        Highway Trust Fund pursuant to this section is a contractual 
        obligation of the Government to pay the Government share of the 
        cost of the project.

[[Page 126 STAT. 729]]

            ``(2) Grants financed from general fund.--A grant or 
        contract that is approved by the Secretary and financed with 
        amounts appropriated in advance from the General Fund of the 
        Treasury pursuant to this section is a contractual obligation of 
        the Government to pay the Government share of the cost of the 
        project only to the extent that amounts are appropriated for 
        such purpose by an Act of Congress.

    ``(k) Availability of Amounts.--Amounts made available by or 
appropriated under this section shall remain available until 
expended.''.
SEC. 20029. BUS AND BUS FACILITIES FORMULA GRANTS.

    (a) In General.--Section 5339 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5339. Bus and bus facilities formula grants

    ``(a) General Authority.--The Secretary may make grants under this 
section to assist eligible recipients described in subsection (c)(1) in 
financing capital projects--
            ``(1) to replace, rehabilitate, and purchase buses and 
        related equipment; and
            ``(2) to construct bus-related facilities.

    ``(b) Grant Requirements.--The requirements of section 5307 apply to 
recipients of grants made under this section.
    ``(c) Eligible Recipients and Subrecipients.--
            ``(1) Recipients.--Eligible recipients under this section 
        are designated recipients that operate fixed route bus service 
        or that allocate funding to fixed route bus operators.
            ``(2) Subrecipients.--A designated recipient that receives a 
        grant under this section may allocate amounts of the grant to 
        subrecipients that are public agencies or private nonprofit 
        organizations engaged in public transportation.

    ``(d) Distribution of Grant Funds.--Funds allocated under section 
5338(a)(2)(J) shall be distributed as follows:
            ``(1) National distribution.--$65,500,000 shall be allocated 
        to all States and territories, with each State receiving 
        $1,250,000 and each territory receiving $500,000.
            ``(2) Distribution using population and service factors.--
        The remainder of the funds not otherwise distributed under 
        paragraph (1) shall be allocated pursuant to the formula set 
        forth in section 5336 other than subsection (b).

    ``(e) Transfers of Apportionments.--
            ``(1) Transfer flexibility for national distribution 
        funds.--The Governor of a State may transfer any part of the 
        State's apportionment under subsection (d)(1) to supplement 
        amounts apportioned to the State under section 5311(c) of this 
        title or amounts apportioned to urbanized areas under 
        subsections (a) and (c) of section 5336 of this title.
            ``(2) Transfer flexibility for population and service 
        factors funds.--The Governor of a State may expend in an 
        urbanized area with a population of less than 200,000 any 
        amounts apportioned under subsection (d)(2) that are not 
        allocated to designated recipients in urbanized areas with a 
        population of 200,000 or more.

    ``(f) Government's Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project under 
        this section shall be for 80 percent of the net capital costs

[[Page 126 STAT. 730]]

        of the project. A recipient of a grant under this section may 
        provide additional local matching amounts.
            ``(2) Remaining costs.--The remainder of the net project 
        cost shall be provided--
                    ``(A) in cash from non-Government sources other than 
                revenues from providing public transportation services;
                    ``(B) from revenues derived from the sale of 
                advertising and concessions;
                    ``(C) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or reserve, or new 
                capital; or
                    ``(D) from amounts received under a service 
                agreement with a State or local social service agency or 
                private social service organization.

    ``(g) <<NOTE: Deadline.>> Period of Availability to Recipients.--
Amounts made available under this section may be obligated by a 
recipient for 3 years after the fiscal year in which the amount is 
apportioned. Not later than 30 <<NOTE: Deadline.>> days after the end of 
the 3-year period described in the preceding sentence, any amount that 
is not obligated on the last day of that period shall be added to the 
amount that may be apportioned under this section in the next fiscal 
year.

    ``(h) Definitions.--For purposes of this section:
            ``(1) The term `State' means a State of the United States.
            ``(2) The term `territory' means the District of Columbia, 
        Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, 
        and the United States Virgin Islands.''.
SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 5305.--Section 5305 of title 49, United States Code, is 
amended--
            (1) in subsection (e)(1)(A), by striking ``sections 5304, 
        5306, 5315, and 5322'' and inserting ``section 5304 and 5306'';
            (2) in subsection (f)--
                    (A) in the heading, by striking ``Government's'' and 
                inserting ``Government''; and
                    (B) by striking ``Government's'' and inserting 
                ``Government''; and
            (3) in subsection (g), by striking ``section 5338(c) for 
        fiscal years 2005 through 2012'' and inserting ``section 
        5338(a)(2)(A) for a fiscal year''.

    (b) Section 5313.--Section 5313(a) of title 49, United States Code, 
is amended--
            (1) in the first sentence, by striking ``subsections 
        (a)(5)(C)(iii) and (d)(1) of section 5338'' and inserting 
        section ``5338(c)''; and
            (2) in the second sentence, by striking ``of 
        Transportation''.

    (c) Section 5319.--Section 5319 of title 49, United States Code, is 
amended, in the second sentence--
            (1) by striking ``sections 5307(e), 5309(h), and 5311(g) of 
        this title'' and inserting ``sections 5307(d), 5309(l), and 
        5311(g)''; and
            (2) by striking ``of the United States'' and inserting 
        ``made by the''.

    (d) Section 5325.--Section 5325(b)(2)(A) of title 49, United States 
Code, is amended by striking ``title 48, Code of Federal Regulations 
(commonly known as the Federal Acquisition Regulation)'' and inserting 
``the Federal Acquisition Regulation, or any successor thereto''.

[[Page 126 STAT. 731]]

    (e) <<NOTE: Effective date. Repeal.>> Section 5330.--Effective 3 
years after the effective date of the final rules issued by the 
Secretary of Transportation under section 5329(e) of title 49, United 
States Code, as amended by this division, section 5330 of title 49, 
United States Code, is repealed.

    (f) Section 5331.--Section 5331 of title 49, United States Code, is 
amended by striking ``Secretary of Transportation'' each place that term 
appears and inserting ``Secretary''.
    (g) Section 5332.--Section 5332(c)(1) of title 49, United States 
Code, is amended by striking ``of Transportation''.
    (h) Section 5333.--Section 5333(a) of title 49, United States Code, 
is amended by striking ``sections 3141-3144'' and inserting ``sections 
3141 through 3144''.
    (i) Section 5334.--Section 5334 of title 49, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by striking ``Secretary of Transportation'' each 
                place that term appears and inserting ``Secretary''; and
                    (B) in paragraph (1), by striking ``Committees on 
                Transportation and Infrastructure and Appropriations of 
                the House of Representatives and the Committees on 
                Banking, Housing, and Urban Affairs and Appropriations 
                of the Senate'' and inserting ``Committee on Banking, 
                Housing, and Urban Affairs and the Committee on 
                Appropriations of the Senate and the Committee on 
                Transportation and Infrastructure and the Committee on 
                Appropriations of the House of Representatives'';
            (2) in subsection (d), by striking ``of Transportation'';
            (3) in subsection (e), by striking ``of Transportation'';
            (4) in subsection (f), by striking ``of Transportation'';
            (5) in subsection (g), in the matter preceding paragraph 
        (1)--
                    (A) by striking ``of Transportation''; and
                    (B) by striking ``subsection (a)(3) or (4) of this 
                section'' and inserting ``paragraph (3) or (4) of 
                subsection (a)'';
            (6) in subsection (h)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``of Transportation''; and
                    (B) in paragraph (2), by striking ``of this 
                section'';
            (7) in subsection (i)(1), by striking ``of Transportation''; 
        and
            (8) in subsection (j), as so redesignated by section 20025 
        of this division, by striking ``Committees on Banking, Housing, 
        and Urban Affairs and Appropriations of the Senate and 
        Committees on Transportation and Infrastructure and 
        Appropriations of the House of Representatives'' and inserting 
        ``Committee on Banking, Housing, and Urban Affairs and the 
        Committee on Appropriations of the Senate and the Committee on 
        Transportation and Infrastructure and the Committee on 
        Appropriations of the House of Representatives''.

    (j) Section 5335.--Section 5335(a) of title 49, United States Code, 
is amended by striking ``of Transportation''.
    (k) Analysis.--The analysis for chapter 53 of title 49, United 
States Code, is amended to read as follows:

``Sec.
``5301. Policies and purposes.
``5302. Definitions.

[[Page 126 STAT. 732]]

``5303. Metropolitan transportation planning.
``5304. Statewide and nonmetropolitan transportation planning.
``5305. Planning programs.
``5306. Private enterprise participation in metropolitan planning and 
           transportation improvement programs and relationship to other 
           limitations.
``5307. Urbanized area formula grants.
``[5308. Repealed.]
``5309. Fixed guideway capital investment grants.
``5310. Formula grants for the enhanced mobility of seniors and 
           individuals with disabilities.
``5311. Formula grants for rural areas.
``5312. Research, development, demonstration, and deployment projects.
``5313. Transit cooperative research program.
``5314. Technical assistance and standards development.
``5315. Private sector participation.
``[5316. Repealed.]
``[5317. Repealed.]
``5318. Bus testing facility.
``5319. Bicycle facilities.
``[5320.Repealed.]
``5321. Crime prevention and security.
``5322. Human resources and training.
``5323. General provisions.
``5324. Public transportation emergency relief program.
``5325. Contract requirements.
``5326. Transit asset management.
``5327. Project management oversight.
``[5328. Repealed.]
``5329. Public transportation safety program.
``5330. State safety oversight.
``5331. Alcohol and controlled substances testing.
``5332. Nondiscrimination.
``5333. Labor standards.
``5334. Administrative provisions.
``5335. National transit database.
``5336. Apportionment of appropriations for formula grants.
``5337. State of good repair grants.
``5338. Authorizations.
``5339. Bus and bus facilities formula grants.
``5340. Apportionments based on growing States and high density States 
           formula factors.''.

   DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

  TITLE I <<NOTE: Motor Vehicle and Highway Safety Improvement Act of 
2012.>> --MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012
SEC. 31001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This title may be cited as the ``Motor Vehicle and Highway Safety 
Improvement Act of 2012'' or ``Mariah's Act''.
SEC. 31002. <<NOTE: 23 USC 101 note.>> DEFINITION.

    In this title, the term ``Secretary'' means the Secretary of 
Transportation.

                       Subtitle A--Highway Safety

SEC. 31101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):

[[Page 126 STAT. 733]]

            (1) Highway safety programs.--For carrying out section 402 
        of title 23, United States Code--
                    (A) $235,000,000 for fiscal year 2013; and
                    (B) $235,000,000 for fiscal year 2014.
            (2) Highway safety research and development.--For carrying 
        out section 403 of title 23, United States Code--
                    (A) $110,500,000 for fiscal year 2013; and
                    (B) $113,500,000 for fiscal year 2014.
            (3) National priority safety programs.--For carrying out 
        section 405 of title 23, United States Code--
                    (A) $265,000,000 for fiscal year 2013; and
                    (B) $272,000,000 for fiscal year 2014.
            (4) National driver register.--For the National Highway 
        Traffic Safety Administration to carry out chapter 303 of title 
        49, United States Code--
                    (A) $5,000,000 for fiscal year 2013; and
                    (B) $5,000,000 for fiscal year 2014.
            (5) High visibility enforcement program.--For carrying out 
        section 2009 of SAFETEA-LU (23 U.S.C. 402 note)--
                    (A) $29,000,000 for fiscal year 2013; and
                    (B) $29,000,000 for fiscal year 2014.
            (6) Administrative expenses.--For administrative and related 
        operating expenses of the National Highway Traffic Safety 
        Administration in carrying out chapter 4 of title 23, United 
        States Code, and this subtitle--
                    (A) $25,500,000 for fiscal year 2013; and
                    (B) $25,500,000 for fiscal year 2014.

    (b) <<NOTE: 23 USC 401 note.>> Prohibition on Other Uses.--Except as 
otherwise provided in chapter 4 of title 23, United States Code, in this 
subtitle, and in the amendments made by this subtitle, the amounts made 
available from the Highway Trust Fund (other than the Mass Transit 
Account) for a program under such chapter--
            (1) shall only be used to carry out such program; and
            (2) may not be used by States or local governments for 
        construction purposes.

    (c) Applicability of Title 23.--Except as otherwise provided in 
chapter 4 of title 23, United States Code, and in this subtitle, amounts 
made available under subsection (a) for fiscal years 2013 and 2014 shall 
be available for obligation in the same manner as if such funds were 
apportioned under chapter 1 of title 23, United States Code.
    (d) <<NOTE: Grants. 23 USC 402 note.>> Regulatory Authority.--Grants 
awarded under this subtitle shall be in accordance with regulations 
issued by the Secretary.

    (e) State Matching Requirements.--If a grant awarded under this 
subtitle requires a State to share in the cost, the aggregate of all 
expenditures for highway safety activities made during any fiscal year 
by the State and its political subdivisions (exclusive of Federal funds) 
for carrying out the grant (other than planning and administration) 
shall be available for the purpose of crediting the State during such 
fiscal year for the non-Federal share of the cost of any project under 
this subtitle (other than planning or administration) without regard to 
whether such expenditures were actually made in connection with such 
project.
    (f) Grant Application and Deadline.--To receive a grant under this 
subtitle, a State shall submit an application, and the Secretary shall 
establish a single deadline for such applications to enable the award of 
grants early in the next fiscal year.

[[Page 126 STAT. 734]]

SEC. 31102. HIGHWAY SAFETY PROGRAMS.

    (a) Programs Included.--Section 402(a) of title 23, United States 
Code, is amended to read as follows:
    ``(a) Program Required.--
            ``(1) In general.--Each State shall have a highway safety 
        program, approved by the Secretary, that is designed to reduce 
        traffic accidents and the resulting deaths, injuries, and 
        property damage.
            ``(2) <<NOTE: Compliance.>> Uniform guidelines.--Programs 
        required under paragraph (1) shall comply with uniform 
        guidelines, promulgated by the Secretary and expressed in terms 
        of performance criteria, that--
                    ``(A) include programs--
                          ``(i) to reduce injuries and deaths resulting 
                      from motor vehicles being driven in excess of 
                      posted speed limits;
                          ``(ii) to encourage the proper use of occupant 
                      protection devices (including the use of safety 
                      belts and child restraint systems) by occupants of 
                      motor vehicles;
                          ``(iii) to reduce injuries and deaths 
                      resulting from persons driving motor vehicles 
                      while impaired by alcohol or a controlled 
                      substance;
                          ``(iv) to prevent accidents and reduce 
                      injuries and deaths resulting from accidents 
                      involving motor vehicles and motorcycles;
                          ``(v) to reduce injuries and deaths resulting 
                      from accidents involving school buses;
                          ``(vi) to reduce accidents resulting from 
                      unsafe driving behavior (including aggressive or 
                      fatigued driving and distracted driving arising 
                      from the use of electronic devices in vehicles); 
                      and
                          ``(vii) to improve law enforcement services in 
                      motor vehicle accident prevention, traffic 
                      supervision, and post-accident procedures;
                    ``(B) improve driver performance, including--
                          ``(i) driver education;
                          ``(ii) driver testing to determine proficiency 
                      to operate motor vehicles; and
                          ``(iii) driver examinations (physical, mental, 
                      and driver licensing);
                    ``(C) improve pedestrian performance and bicycle 
                safety;
                    ``(D) include provisions for--
                          ``(i) an effective record system of accidents 
                      (including resulting injuries and deaths);
                          ``(ii) accident investigations to determine 
                      the probable causes of accidents, injuries, and 
                      deaths;
                          ``(iii) vehicle registration, operation, and 
                      inspection; and
                          ``(iv) emergency services; and
                    ``(E) to the extent determined appropriate by the 
                Secretary, are applicable to federally administered 
                areas where a Federal department or agency controls the 
                highways or supervises traffic operations.''.

    (b) Administration of State Programs.--Section 402(b) of title 23, 
United States Code, is amended--
            (1) in paragraph (1)--

[[Page 126 STAT. 735]]

                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F);
                    (C) by inserting after subparagraph (D) the 
                following:
                    ``(E) beginning on the first day of the first fiscal 
                year after the date of enactment of the Motor Vehicle 
                and Highway Safety Improvement Act of 2012 in which a 
                State submits its highway safety plan under subsection 
                (f), provide for a data-driven traffic safety 
                enforcement program to prevent traffic violations, 
                crashes, and crash fatalities and injuries in areas most 
                at risk for such incidents, to the satisfaction of the 
                Secretary;''; and
                    (D) in subparagraph (F), as redesignated--
                          (i) in clause (i), by inserting ``and high-
                      visibility law enforcement mobilizations 
                      coordinated by the Secretary'' after 
                      ``mobilizations'';
                          (ii) in clause (iii), by striking ``and'' at 
                      the end;
                          (iii) in clause (iv), by striking the period 
                      at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                          ``(v) ensuring that the State will coordinate 
                      its highway safety plan, data collection, and 
                      information systems with the State strategic 
                      highway safety plan (as defined in section 
                      148(a)).''; and
            (2) by striking paragraph (3).

    (c) Approved Highway Safety Programs.--Section 402(c) of title 23, 
United States Code, is amended--
            (1) by striking ``(c) Funds authorized'' and inserting the 
        following:

    ``(c) Use of Funds.--
            ``(1) In general.--Funds authorized'';
            (2) by striking ``Such funds'' and inserting the following:
            ``(2) Apportionment.--Except for amounts identified in 
        section 403(f), funds described in paragraph (1)'';
            (3) by striking ``The Secretary shall not'' and all that 
        follows through ``subsection, a highway safety program'' and 
        inserting ``A highway safety program'';
            (4) by inserting ``A State may use the funds apportioned 
        under this section, in cooperation with neighboring States, for 
        highway safety programs or related projects that may confer 
        benefits on such neighboring States.'' after ``in every 
        State.'';
            (5) by striking ``50 per centum'' and inserting ``20 
        percent''; and
            (6) by striking ``The Secretary shall promptly'' and all 
        that follows and inserting the following:
            
        ``(3) <<NOTE: Determinations. Deadlines.>> Reapportionment.--The 
        Secretary shall promptly apportion the funds withheld from a 
        State's apportionment to the State if the Secretary approves the 
        State's highway safety program or determines that the State has 
        begun implementing an approved program, as appropriate, not 
        later than July 31st of the fiscal year for which the funds were 
        withheld. If the Secretary determines that the State did not 
        correct its failure within such period, the Secretary shall 
        reapportion the withheld funds to the other States in accordance 
        with the formula specified in paragraph (2) not later than the 
        last day of the fiscal year.
            ``(4) Automated traffic enforcement systems.--

[[Page 126 STAT. 736]]

                    ``(A) Prohibition.--A State may not expend funds 
                apportioned to that State under this section to carry 
                out a program to purchase, operate, or maintain an 
                automated traffic enforcement system.
                    ``(B) Automated traffic enforcement system 
                defined.--In this paragraph, the term `automated traffic 
                enforcement system' means any camera which captures an 
                image of a vehicle for the purposes only of red light 
                and speed enforcement, and does not include hand held 
                radar and other devices operated by law enforcement 
                officers to make an on-the-scene traffic stop, issue a 
                traffic citation, or other enforcement action at the 
                time of the violation.''.

    (d) Use of Highway Safety Program Funds.--Section 402(g) of title 
23, United States Code, is amended to read as follows:
    ``(g) Savings Provision.--
            ``(1) In general.--Except as provided under paragraph (2), 
        nothing in this section may be construed to authorize the 
        appropriation or expenditure of funds for--
                    ``(A) highway construction, maintenance, or design 
                (other than design of safety features of highways to be 
                incorporated into guidelines); or
                    ``(B) any purpose for which funds are authorized 
                under section 403.
            ``(2) Demonstration projects.--A State may use funds made 
        available to carry out this section to assist in demonstration 
        projects carried out by the Secretary under section 403.''.

    (e) In General.--Section 402 of title 23, United States Code, is 
amended--
            (1) by striking subsections (k) and (m);
            (2) by redesignating subsections (i) and (j) as subsections 
        (h) and (i), respectively; and
            (3) by redesignating subsection (l) as subsection (j).

    (f) Highway Safety Plan and Reporting Requirements.--Section 402 of 
title 23, United States Code, as amended by this section, is further 
amended by adding at the end the following:
    ``(k) Highway Safety Plan and Reporting Requirements.--
            ``(1) In general.--With respect to fiscal year 2014, and 
        each fiscal year thereafter, the Secretary shall require each 
        State, as a condition of the approval of the State's highway 
        safety program for that fiscal year, to develop and submit to 
        the Secretary for approval a highway safety plan that complies 
        with the requirements under this subsection.
            ``(2) Timing.--Each State shall submit to the Secretary the 
        highway safety plan not later than July 1st of the fiscal year 
        preceding the fiscal year to which the plan applies.
            ``(3) Contents.--State highway safety plans submitted under 
        paragraph (1) shall include--
                    ``(A) performance measures required by the Secretary 
                or otherwise necessary to support additional State 
                safety goals, including--
                          ``(i) documentation of current safety levels 
                      for each performance measure;
                          ``(ii) quantifiable annual performance targets 
                      for each performance measure; and

[[Page 126 STAT. 737]]

                          ``(iii) a justification for each performance 
                      target, that explains why each target is 
                      appropriate and evidence-based;
                    ``(B) a strategy for programming funds apportioned 
                to the State under this section on projects and 
                activities that will allow the State to meet the 
                performance targets described in subparagraph (A);
                    ``(C) data and data analysis supporting the 
                effectiveness of proposed countermeasures;
                    ``(D) a description of any Federal, State, local, or 
                private funds that the State plans to use, in addition 
                to funds apportioned to the State under this section, to 
                carry out the strategy described in subparagraph (B);
                    ``(E) for the fiscal year preceding the fiscal year 
                to which the plan applies, a report on the State's 
                success in meeting State safety goals and performance 
                targets set forth in the previous year's highway safety 
                plan; and
                    ``(F) an application for any additional grants 
                available to the State under this chapter.
            ``(4) <<NOTE: Limitations.>> Performance measures.--For the 
        first highway safety plan submitted under this subsection, the 
        performance measures required by the Secretary under paragraph 
        (2)(A) shall be limited to those developed by the National 
        Highway Traffic Safety Administration and the Governor's Highway 
        Safety Association and described in the report, `Traffic Safety 
        Performance Measures for States and Federal Agencies' (DOT HS 
        811 025). For subsequent highway safety plans, the Secretary 
        shall coordinate with the Governor's Highway Safety Association 
        in making revisions to the set of required performance measures.
            ``(5) Review of highway safety plans.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 60 days after the date on which a State's highway 
                safety plan is received by the Secretary, the Secretary 
                shall review and approve or disapprove the plan.
                    ``(B) <<NOTE: Determinations.>> Approvals and 
                disapprovals.--
                          ``(i) Approvals.--The Secretary shall approve 
                      a State's highway safety plan if the Secretary 
                      determines that--
                                    ``(I) the plan and the performance 
                                targets contained in the plan are 
                                evidence-based and supported by data; 
                                and
                                    ``(II) the plan, once implemented, 
                                will allow the State to meet the State's 
                                performance targets.
                          ``(ii) Disapprovals.--The Secretary shall 
                      disapprove a State's highway safety plan if the 
                      Secretary determines that--
                                    ``(I) the plan and the performance 
                                targets contained in the plan are not 
                                evidence-based or supported by data; or
                                    ``(II) the plan does not provide for 
                                programming of funding in a manner 
                                sufficient to allow the State to meet 
                                the State's performance targets.
                    ``(C) Actions upon disapproval.--If the Secretary 
                disapproves a State's highway safety plan, the Secretary 
                shall--
                          ``(i) <<NOTE: Notification.>> inform the State 
                      of the reasons for such disapproval; and

[[Page 126 STAT. 738]]

                          ``(ii) require the State to resubmit the plan 
                      with any modifications that the Secretary 
                      determines to be necessary.
                    ``(D) <<NOTE: Deadline.>> Review of resubmitted 
                plans.--If the Secretary requires a State to resubmit a 
                highway safety plan, with modifications, the Secretary 
                shall review and approve or disapprove the modified plan 
                not later than 30 days after the date on which the 
                Secretary receives such plan.
                    ``(E) Public notice.--A State shall make the State's 
                highway safety plan, and decisions of the Secretary 
                concerning approval or disapproval of a revised plan, 
                available to the public.''.

    (g) Teen Traffic Safety Program.--Section 402 of title 23, United 
States Code, as amended by this section, is further amended by adding at 
the end the following:
    ``(m) Teen Traffic Safety.--
            ``(1) In general.--Subject to the requirements of a State's 
        highway safety plan, as approved by the Secretary under 
        subsection (k), a State may use a portion of the amounts 
        received under this section to implement statewide efforts to 
        improve traffic safety for teen drivers.
            ``(2) Use of funds.--Statewide efforts under paragraph (1)--
                    ``(A) shall include peer-to-peer education and 
                prevention strategies in schools and communities 
                designed to--
                          ``(i) increase safety belt use;
                          ``(ii) reduce speeding;
                          ``(iii) reduce impaired and distracted 
                      driving;
                          ``(iv) reduce underage drinking; and
                          ``(v) reduce other behaviors by teen drivers 
                      that lead to injuries and fatalities; and
                    ``(B) may include--
                          ``(i) working with student-led groups and 
                      school advisors to plan and implement teen traffic 
                      safety programs;
                          ``(ii) providing subgrants to schools 
                      throughout the State to support the establishment 
                      and expansion of student groups focused on teen 
                      traffic safety;
                          ``(iii) providing support, training, and 
                      technical assistance to establish and expand 
                      school and community safety programs for teen 
                      drivers;
                          ``(iv) creating statewide or regional websites 
                      to publicize and circulate information on teen 
                      safety programs;
                          ``(v) conducting outreach and providing 
                      educational resources for parents;
                          ``(vi) establishing State or regional advisory 
                      councils comprised of teen drivers to provide 
                      input and recommendations to the governor and the 
                      governor's safety representative on issues related 
                      to the safety of teen drivers;
                          ``(vii) collaborating with law enforcement; 
                      and
                          ``(viii) establishing partnerships and 
                      promoting coordination among community 
                      stakeholders, including public, not-for-profit, 
                      and for profit entities.''.

[[Page 126 STAT. 739]]

    (h) Biennial Report to Congress.--Section 402 of title 23, United 
States Code, as amended by this section, is further amended by adding at 
the end the following:
    ``(n) Biennial Report to Congress.--Not later than October 1, 2015, 
and biennially thereafter, the Secretary shall submit a report to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate that contains--
            ``(1) an evaluation of each State's performance with respect 
        to the State's highway safety plan under subsection (k) and 
        performance targets set by the States in such plans; and
            ``(2) such recommendations as the Secretary may have for 
        improvements to activities carried out under subsection (k).''.
SEC. 31103. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.

    Section 403 of title 23, United States Code, is amended--
            (1) by striking subsections (a) through (f) and inserting 
        the following:

    ``(a) Defined Term.--In this section, the term `Federal laboratory' 
includes--
            ``(1) a government-owned, government-operated laboratory; 
        and
            ``(2) a government-owned, contractor-operated laboratory.

    ``(b) General Authority.--
            ``(1) Research and development activities.--The Secretary 
        may conduct research and development activities, including 
        demonstration projects and the collection and analysis of 
        highway and motor vehicle safety data and related information 
        needed to carry out this section, with respect to--
                    ``(A) all aspects of highway and traffic safety 
                systems and conditions relating to--
                          ``(i) vehicle, highway, driver, passenger, 
                      motorcyclist, bicyclist, and pedestrian 
                      characteristics;
                          ``(ii) accident causation and investigations;
                          ``(iii) communications; and
                          ``(iv) emergency medical services, including 
                      the transportation of the injured;
                    ``(B) human behavioral factors and their effect on 
                highway and traffic safety, including--
                          ``(i) driver education;
                          ``(ii) impaired driving; and
                          ``(iii) distracted driving;
                    ``(C) an evaluation of the effectiveness of 
                countermeasures to increase highway and traffic safety, 
                including occupant protection and alcohol- and drug-
                impaired driving technologies and initiatives;
                    ``(D) the development of technologies to detect drug 
                impaired drivers;
                    ``(E) research on, evaluations of, and 
                identification of best practices related to driver 
                education programs (including driver education 
                curricula, instructor training and certification, 
                program administration, and delivery mechanisms) and 
                make recommendations for harmonizing driver education 
                and multistage graduated licensing systems; and
                    ``(F) the effect of State laws on any aspects, 
                activities, or programs described in subparagraphs (A) 
                through (E).

[[Page 126 STAT. 740]]

            ``(2) Cooperation, grants, and contracts.--The Secretary may 
        carry out this section--
                    ``(A) independently;
                    ``(B) in cooperation with other Federal departments, 
                agencies, and instrumentalities and Federal 
                laboratories;
                    ``(C) by entering into contracts, cooperative 
                agreements, and other transactions with the National 
                Academy of Sciences, any Federal laboratory, State or 
                local agency, authority, association, institution, or 
                person (as defined in chapter 1 of title 1); or
                    ``(D) by making grants to the National Academy of 
                Sciences, any Federal laboratory, State or local agency, 
                authority, association, institution, or person (as 
                defined in chapter 1 of title 1).

    ``(c) Collaborative Research and Development.--
            ``(1) In general.--To encourage innovative solutions to 
        highway safety problems, stimulate voluntary improvements in 
        highway safety, and stimulate the marketing of new highway 
        safety related technology by private industry, the Secretary is 
        authorized to carry out, on a cost-shared basis, collaborative 
        research and development with--
                    ``(A) non-Federal entities, including State and 
                local governments, colleges, universities, corporations, 
                partnerships, sole proprietorships, organizations, and 
                trade associations that are incorporated or established 
                under the laws of any State or the United States; and
                    ``(B) Federal laboratories.
            ``(2) Agreements.--In carrying out this subsection, the 
        Secretary may enter into cooperative research and development 
        agreements (as defined in section 12 of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 3710a)) in which 
        the Secretary provides not more than 50 percent of the cost of 
        any research or development project under this subsection.
            ``(3) Use of technology.--The research, development, or use 
        of any technology pursuant to an agreement under this 
        subsection, including the terms under which technology may be 
        licensed and the resulting royalties may be distributed, shall 
        be subject to the provisions of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3701 et seq.).

    ``(d) Title to Equipment.--In furtherance of the purposes set forth 
in section 402, the Secretary may vest title to equipment purchased for 
demonstration projects with funds authorized under this section to State 
or local agencies on such terms and conditions as the Secretary 
determines to be appropriate.
    ``(e) Prohibition on Certain Disclosures.--Any report of the 
National Highway Traffic Safety Administration, or of any officer, 
employee, or contractor of the National Highway Traffic Safety 
Administration, relating to any highway traffic accident or the 
investigation of such accident conducted pursuant to this chapter or 
chapter 301 may only be made available to the public in a manner that 
does not identify individuals.
    ``(f) Cooperative Research and Evaluation.--
            ``(1) Establishment and funding.--Notwithstanding the 
        apportionment formula set forth in section 402(c)(2), $2,500,000 
        of the total amount available for apportionment to the States 
        for highway safety programs under subsection 402(c) in each 
        fiscal year shall be available for expenditure by the Secretary,

[[Page 126 STAT. 741]]

        acting through the Administrator of the National Highway Traffic 
        Safety Administration, for a cooperative research and evaluation 
        program to research and evaluate priority highway safety 
        countermeasures.
            ``(2) Administration.--The program established under 
        paragraph (1)--
                    ``(A) shall be administered by the Administrator of 
                the National Highway Traffic Safety Administration; and
                    ``(B) shall be jointly managed by the Governors 
                Highway Safety Association and the National Highway 
                Traffic Safety Administration.''; and
            (2) by adding at the end the following:

    ``(h) In-vehicle Alcohol Detection Device Research.--
            ``(1) In general.--The Administrator of the National Highway 
        Traffic Safety Administration may carry out a collaborative 
        research effort under chapter 301 of title 49 on in-vehicle 
        technology to prevent alcohol-impaired driving.
            ``(2) Funding.--Funds provided under section 405 may be made 
        to be used by the Secretary to conduct the research described in 
        paragraph (1).
            ``(3) Privacy protection.--If the Administrator utilizes the 
        authority under paragraph (1), the Administrator shall not 
        develop requirements for any device or means of technology to be 
        installed in an automobile intended for retail sale that records 
        a driver's blood alcohol concentration.
            ``(4) Reports.--If the Administrator conducts the research 
        authorized under paragraph (1), the Administrator shall submit 
        an annual report to the Committee on Commerce, Science, and 
        Transportation of the Senate, the Committee on Transportation 
        and Infrastructure of the House of Representatives, and 
        Committee on Science, Space, and Technology of the House of 
        Representatives that--
                    ``(A) describes the progress made in carrying out 
                the collaborative research effort; and
                    ``(B) includes an accounting for the use of Federal 
                funds obligated or expended in carrying out that effort.
            ``(5) Definitions.--In this subsection:
                    ``(A) Alcohol-impaired driving.--The term `alcohol-
                impaired driving' means the operation of a motor vehicle 
                (as defined in section 30102(a)(6) of title 49) by an 
                individual whose blood alcohol content is at or above 
                the legal limit.
                    ``(B) Legal limit.--The term `legal limit' means a 
                blood alcohol concentration of 0.08 percent or greater 
                (as set forth in section 163(a)) or such other 
                percentage limitation as may be established by 
                applicable Federal, State, or local law.''.
SEC. 31104. NATIONAL DRIVER REGISTER.

    Section 30302(b) of title 49, United States Code, is amended by 
adding at the end the following: ``The Secretary shall make continual 
improvements to modernize the Register's data processing system.''.
SEC. 31105. NATIONAL PRIORITY SAFETY PROGRAMS.

    (a) In General.--Section 405 of title 23, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 742]]

``Sec. 405. National priority safety programs

    ``(a) General Authority.--Subject to the requirements of this 
section, the Secretary of Transportation shall manage programs to 
address national priorities for reducing highway deaths and injuries. 
Funds shall be allocated according to the priorities set forth in 
paragraphs (1) and (2).
            ``(1) Grants to states.--
                    ``(A) Occupant protection.--16 percent of the funds 
                provided under this section in each fiscal year shall be 
                allocated among States that adopt and implement 
                effective occupant protection programs to reduce highway 
                deaths and injuries resulting from individuals riding 
                unrestrained or improperly restrained in motor vehicles 
                (as described in subsection (b)).
                    ``(B) State traffic safety information system 
                improvements.--14.5 percent of the funds provided under 
                this section in each fiscal year shall be allocated 
                among States that meet the requirements of the State 
                traffic safety information system improvements (as 
                described in subsection (c)).
                    ``(C) Impaired driving countermeasures.--52.5 
                percent of the funds provided under this section in each 
                fiscal year shall be allocated among States that meet 
                the requirements of the impaired driving countermeasures 
                (as described in subsection (d)).
                    ``(D) Distracted driving.--8.5 percent of the funds 
                provided under this section in each fiscal year shall be 
                allocated among States that adopt and implement 
                effective laws to reduce distracted driving (as 
                described in subsection (e)).
                    ``(E) Motorcyclist safety.--1.5 percent of the funds 
                provided under this section in each fiscal year shall be 
                allocated among States that implement motorcyclist 
                safety programs (as described in subsection (f)).
                    ``(F) State graduated driver licensing laws.--5 
                percent of the funds provided under this section in each 
                fiscal year shall be allocated among States that adopt 
                and implement graduated driver licensing laws (as 
                described in subsection (g)).
                    ``(G) Transfers.--Notwithstanding subparagraphs (A) 
                through (F), the Secretary may reallocate, before the 
                last day of any fiscal year, any amounts remaining 
                available to carry out any of the activities described 
                in subsections (b) through (g) to increase the amount 
                made available to carry out any of the other activities 
                described in such subsections, or the amount made 
                available under section 402, in order to ensure, to the 
                maximum extent possible, that all such amounts are 
                obligated during such fiscal year.
                    ``(H) Maintenance of effort.--
                          ``(i) Requirements.--No grant may be made to a 
                      State in any fiscal year under subsection (b), 
                      (c), or (d) unless the State enters into such 
                      agreements with the Secretary as the Secretary may 
                      require to ensure that the State will maintain its 
                      aggregate

[[Page 126 STAT. 743]]

                      expenditures from all State and local sources for 
                      programs described in those sections at or above 
                      the average level of such expenditures in its 2 
                      fiscal years preceding the date of enactment of 
                      the Motor Vehicle and Highway Safety Improvement 
                      Act of 2012.
                          ``(ii) Waiver.--Upon the request of a State, 
                      the Secretary may waive or modify the requirements 
                      under clause (i) for not more than 1 fiscal year 
                      if the Secretary determines that such a waiver 
                      would be equitable due to exceptional or 
                      uncontrollable circumstances.
            ``(2) Other priority programs.--Funds provided under this 
        section in each fiscal year may be used for research into 
        technology to prevent alcohol-impaired driving (as described in 
        subsection 403(h)).

    ``(b) Occupant Protection Grants.--
            ``(1) General authority.--Subject to the requirements under 
        this subsection, the Secretary of Transportation shall award 
        grants to States that adopt and implement effective occupant 
        protection programs to reduce highway deaths and injuries 
        resulting from individuals riding unrestrained or improperly 
        restrained in motor vehicles.
            ``(2) Federal share.--The Federal share of the costs of 
        activities funded using amounts from grants awarded under this 
        subsection may not exceed 80 percent for each fiscal year for 
        which a State receives a grant.
            ``(3) Eligibility.--
                    ``(A) High seat belt use rate.--A State with an 
                observed seat belt use rate of 90 percent or higher, 
                based on the most recent data from a survey that 
                conforms with national criteria established by the 
                National Highway Traffic Safety Administration, shall be 
                eligible for a grant in a fiscal year if the State--
                          ``(i) <<NOTE: Occupant plan.>> submits an 
                      occupant protection plan during the first fiscal 
                      year;
                          ``(ii) participates in the Click It or Ticket 
                      national mobilization;
                          ``(iii) has an active network of child 
                      restraint inspection stations; and
                          ``(iv) has a plan to recruit, train, and 
                      maintain a sufficient number of child passenger 
                      safety technicians.
                    ``(B) Lower seat belt use rate.--A State with an 
                observed seat belt use rate below 90 percent, based on 
                the most recent data from a survey that conforms with 
                national criteria established by the National Highway 
                Traffic Safety Administration, shall be eligible for a 
                grant in a fiscal year if--
                          ``(i) the State meets all of the requirements 
                      under clauses (i) through (iv) of subparagraph 
                      (A); and
                          ``(ii) the Secretary determines that the State 
                      meets at least 3 of the following criteria:
                                    ``(I) The State conducts sustained 
                                (on-going and periodic) seat belt 
                                enforcement at a defined level of 
                                participation during the year.
                                    ``(II) The State has enacted and 
                                enforces a primary enforcement seat belt 
                                use law.

[[Page 126 STAT. 744]]

                                    ``(III) The State has implemented 
                                countermeasure programs for high-risk 
                                populations, such as drivers on rural 
                                roadways, unrestrained nighttime 
                                drivers, or teenage drivers.
                                    ``(IV) The State has enacted and 
                                enforces occupant protection laws 
                                requiring front and rear occupant 
                                protection use by all occupants in an 
                                age-appropriate restraint.
                                    ``(V) The State has implemented a 
                                comprehensive occupant protection 
                                program in which the State has--
                                            ``(aa) conducted a program 
                                        assessment;
                                            ``(bb) developed a statewide 
                                        strategic plan;
                                            ``(cc) designated an 
                                        occupant protection coordinator; 
                                        and
                                            ``(dd) established a 
                                        statewide occupant protection 
                                        task force.
                                    ``(VI) The State--
                                            ``(aa) completed an 
                                        assessment of its occupant 
                                        protection program during the 3-
                                        year period preceding the grant 
                                        year; or
                                            ``(bb) will conduct such an 
                                        assessment during the first year 
                                        of the grant.
            ``(4) Use of grant amounts.--
                    ``(A) In general.--Grant funds received pursuant to 
                this subsection may be used to--
                          ``(i) carry out a program to support high-
                      visibility enforcement mobilizations, including 
                      paid media that emphasizes publicity for the 
                      program, and law enforcement;
                          ``(ii) carry out a program to train occupant 
                      protection safety professionals, police officers, 
                      fire and emergency medical personnel, educators, 
                      and parents concerning all aspects of the use of 
                      child restraints and occupant protection;
                          ``(iii) carry out a program to educate the 
                      public concerning the proper use and installation 
                      of child restraints, including related equipment 
                      and information systems;
                          ``(iv) carry out a program to provide 
                      community child passenger safety services, 
                      including programs about proper seating positions 
                      for children and how to reduce the improper use of 
                      child restraints;
                          ``(v) purchase and distribute child restraints 
                      to low-income families, provided that not more 
                      than 5 percent of the funds received in a fiscal 
                      year are used for such purpose; and
                          ``(vi) establish and maintain information 
                      systems containing data concerning occupant 
                      protection, including the collection and 
                      administration of child passenger safety and 
                      occupant protection surveys.
                    ``(B) High seat belt use rate.--A State that is 
                eligible for funds under paragraph (3)(A) may use up to 
                75 percent of such funds for any project or activity 
                eligible for funding under section 402.

[[Page 126 STAT. 745]]

            ``(5) Grant amount.--The allocation of grant funds to a 
        State under this subsection for a fiscal year shall be in 
        proportion to the State's apportionment under section 402 for 
        fiscal year 2009.
            ``(6) Definitions.--In this subsection:
                    ``(A) Child restraint.--The term `child restraint' 
                means any device (including child safety seat, booster 
                seat, harness, and excepting seat belts) that is--
                          ``(i) designed for use in a motor vehicle to 
                      restrain, seat, or position children who weigh 65 
                      pounds (30 kilograms) or less; and
                          ``(ii) certified to the Federal motor vehicle 
                      safety standard prescribed by the National Highway 
                      Traffic Safety Administration for child 
                      restraints.
                    ``(B) Seat belt.--The term `seat belt' means--
                          ``(i) with respect to open-body motor 
                      vehicles, including convertibles, an occupant 
                      restraint system consisting of a lap belt or a lap 
                      belt and a detachable shoulder belt; and
                          ``(ii) with respect to other motor vehicles, 
                      an occupant restraint system consisting of 
                      integrated lap and shoulder belts.

    ``(c) State Traffic Safety Information System Improvements.--
            ``(1) General authority.--Subject to the requirements under 
        this subsection, the Secretary of Transportation shall award 
        grants to States to support the development and implementation 
        of effective State programs that--
                    ``(A) improve the timeliness, accuracy, 
                completeness, uniformity, integration, and accessibility 
                of the State safety data that is needed to identify 
                priorities for Federal, State, and local highway and 
                traffic safety programs;
                    ``(B) evaluate the effectiveness of efforts to make 
                such improvements;
                    ``(C) link the State data systems, including traffic 
                records, with other data systems within the State, such 
                as systems that contain medical, roadway, and economic 
                data;
                    ``(D) improve the compatibility and interoperability 
                of the data systems of the State with national data 
                systems and data systems of other States; and
                    ``(E) enhance the ability of the Secretary to 
                observe and analyze national trends in crash 
                occurrences, rates, outcomes, and circumstances.
            ``(2) Federal share.--The Federal share of the cost of 
        adopting and implementing in a fiscal year a State program 
        described in this subsection may not exceed 80 percent.
            ``(3) Eligibility.--A State is not eligible for a grant 
        under this subsection in a fiscal year unless the State 
        demonstrates, to the satisfaction of the Secretary, that the 
        State--
                    ``(A) has a functioning traffic records coordinating 
                committee (referred to in this paragraph as `TRCC') that 
                meets at least 3 times each year;
                    ``(B) has designated a TRCC coordinator;
                    ``(C) has established a State traffic record 
                strategic plan that has been approved by the TRCC and 
                describes

[[Page 126 STAT. 746]]

                specific quantifiable and measurable improvements 
                anticipated in the State's core safety databases, 
                including crash, citation or adjudication, driver, 
                emergency medical services or injury surveillance 
                system, roadway, and vehicle databases;
                    ``(D) has demonstrated quantitative progress in 
                relation to the significant data program attribute of--
                          ``(i) accuracy;
                          ``(ii) completeness;
                          ``(iii) timeliness;
                          ``(iv) uniformity;
                          ``(v) accessibility; or
                          ``(vi) integration of a core highway safety 
                      database; and
                    ``(E) <<NOTE: Certification.>> has certified to the 
                Secretary that an assessment of the State's highway 
                safety data and traffic records system was conducted or 
                updated during the preceding 5 years.
            ``(4) Use of grant amounts.--Grant funds received by a State 
        under this subsection shall be used for making data program 
        improvements to core highway safety databases related to 
        quantifiable, measurable progress in any of the 6 significant 
        data program attributes set forth in paragraph (3)(D).
            ``(5) Grant amount.--The allocation of grant funds to a 
        State under this subsection for a fiscal year shall be in 
        proportion to the State's apportionment under section 402 for 
        fiscal year 2009.

    ``(d) Impaired Driving Countermeasures.--
            ``(1) <<NOTE: Grants.>> In general.--Subject to the 
        requirements under this subsection, the Secretary of 
        Transportation shall award grants to States that adopt and 
        implement--
                    ``(A) effective programs to reduce driving under the 
                influence of alcohol, drugs, or the combination of 
                alcohol and drugs; or
                    ``(B) alcohol-ignition interlock laws.
            ``(2) Federal share.--The Federal share of the costs of 
        activities funded using amounts from grants under this 
        subsection may not exceed 80 percent in any fiscal year in which 
        the State receives a grant.
            ``(3) <<NOTE: Plans.>> Eligibility.--
                    ``(A) Low-range states.--Low-range States shall be 
                eligible for a grant under this subsection.
                    ``(B) Mid-range states.--A mid-range State shall be 
                eligible for a grant under this subsection if--
                          ``(i) a statewide impaired driving task force 
                      in the State developed a statewide plan during the 
                      most recent 3 calendar years to address the 
                      problem of impaired driving; or
                          ``(ii) the State will convene a statewide 
                      impaired driving task force to develop such a plan 
                      during the first year of the grant.
                    ``(C) High-range states.--A high-range State shall 
                be eligible for a grant under this subsection if the 
                State--
                          ``(i)(I) conducted an assessment of the 
                      State's impaired driving program during the most 
                      recent 3 calendar years; or

[[Page 126 STAT. 747]]

                          ``(II) will conduct such an assessment during 
                      the first year of the grant;
                          ``(ii) convenes, during the first year of the 
                      grant, a statewide impaired driving task force to 
                      develop a statewide plan that--
                                    ``(I) addresses any recommendations 
                                from the assessment conducted under 
                                clause (i);
                                    ``(II) includes a detailed plan for 
                                spending any grant funds provided under 
                                this subsection; and
                                    ``(III) describes how such spending 
                                supports the statewide program; and
                          ``(iii)(I) submits the statewide plan to the 
                      National Highway Traffic Safety Administration 
                      during the first year of the grant for the 
                      agency's review and approval;
                          ``(II) annually updates the statewide plan in 
                      each subsequent year of the grant; and
                          ``(III) submits each updated statewide plan 
                      for the agency's review and comment.
            ``(4) Use of grant amounts.--
                    ``(A) Required programs.--High-range States shall 
                use grant funds for--
                          ``(i) high visibility enforcement efforts; and
                          ``(ii) any of the activities described in 
                      subparagraph (B) if--
                                    ``(I) the activity is described in 
                                the statewide plan; and
                                    ``(II) the Secretary approves the 
                                use of funding for such activity.
                    ``(B) Authorized programs.--Medium-range and low-
                range States may use grant funds for--
                          ``(i) any of the purposes described in 
                      subparagraph (A);
                          ``(ii) hiring a full-time or part-time 
                      impaired driving coordinator of the State's 
                      activities to address the enforcement and 
                      adjudication of laws regarding driving while 
                      impaired by alcohol;
                          ``(iii) court support of high visibility 
                      enforcement efforts, training and education of 
                      criminal justice professionals (including law 
                      enforcement, prosecutors, judges, and probation 
                      officers) to assist such professionals in handling 
                      impaired driving cases, hiring traffic safety 
                      resource prosecutors, hiring judicial outreach 
                      liaisons, and establishing driving while 
                      intoxicated courts;
                          ``(iv) alcohol ignition interlock programs;
                          ``(v) improving blood-alcohol concentration 
                      testing and reporting;
                          ``(vi) paid and earned media in support of 
                      high visibility enforcement efforts, and 
                      conducting standardized field sobriety training, 
                      advanced roadside impaired driving evaluation 
                      training, and drug recognition expert training for 
                      law enforcement, and equipment and related 
                      expenditures used in connection with impaired 
                      driving enforcement in accordance with criteria 
                      established by the National Highway Traffic Safety 
                      Administration;

[[Page 126 STAT. 748]]

                          ``(vii) training on the use of alcohol 
                      screening and brief intervention;
                          ``(viii) developing impaired driving 
                      information systems; and
                          ``(ix) costs associated with a 24-7 sobriety 
                      program.
                    ``(C) Other programs.--Low-range States may use 
                grant funds for any expenditure designed to reduce 
                impaired driving based on problem identification. Medium 
                and high-range States may use funds for such 
                expenditures upon approval by the Secretary.
            ``(5) Grant amount.--Subject to paragraph (6), the 
        allocation of grant funds to a State under this section for a 
        fiscal year shall be in proportion to the State's apportionment 
        under section 402(c) for fiscal year 2009.
            ``(6) Grants to states that adopt and enforce mandatory 
        alcohol-ignition interlock laws.--
                    ``(A) In general.--The Secretary shall make a 
                separate grant under this subsection to each State that 
                adopts and is enforcing a mandatory alcohol-ignition 
                interlock law for all individuals convicted of driving 
                under the influence of alcohol or of driving while 
                intoxicated.
                    ``(B) Use of funds.--Grants authorized under 
                subparagraph (A) may be used by recipient States for any 
                eligible activities under this subsection or section 
                402.
                    ``(C) Allocation.--Amounts made available under this 
                paragraph shall be allocated among States described in 
                subparagraph (A) on the basis of the apportionment 
                formula set forth in section 402(c).
                    ``(D) Funding.--Not more than 15 percent of the 
                amounts made available to carry out this subsection in a 
                fiscal year shall be made available by the Secretary for 
                making grants under this paragraph.
            ``(7) Definitions.--In this subsection:
                    ``(A) 24-7 sobriety program.--The term `24-7 
                sobriety program' means a State law or program that 
                authorizes a State court or a State agency, as a 
                condition of sentence, probation, parole, or work 
                permit, to--
                          ``(i) require an individual who plead guilty 
                      or was convicted of driving under the influence of 
                      alcohol or drugs to totally abstain from alcohol 
                      or drugs for a period of time; and
                          ``(ii) require the individual to be subject to 
                      testing for alcohol or drugs--
                                    ``(I) at least twice per day;
                                    ``(II) by continuous transdermal 
                                alcohol monitoring via an electronic 
                                monitoring device; or
                                    ``(III) by an alternate method with 
                                the concurrence of the Secretary.
                    ``(B) Average impaired driving fatality rate.--The 
                term `average impaired driving fatality rate' means the 
                number of fatalities in motor vehicle crashes involving 
                a driver with a blood alcohol concentration of at least 
                0.08 percent for every 100,000,000 vehicle miles 
                traveled, based on the most recently reported 3 calendar 
                years of final data from the Fatality Analysis Reporting 
                System, as calculated in accordance with regulations 
                prescribed

[[Page 126 STAT. 749]]

                by the Administrator of the National Highway Traffic 
                Safety Administration.
                    ``(C) High-range state.--The term `high-range State' 
                means a State that has an average impaired driving 
                fatality rate of 0.60 or higher.
                    ``(D) Low-range state.--The term `low-range State' 
                means a State that has an average impaired driving 
                fatality rate of 0.30 or lower..
                    ``(E) Mid-range state.--The term `mid-range State' 
                means a State that has an average impaired driving 
                fatality rate that is higher than 0.30 and lower than 
                0.60.

    ``(e) Distracted Driving Grants.--
            ``(1) In general.--The Secretary shall award a grant under 
        this subsection to any State that enacts and enforces a statute 
        that meets the requirements set forth in paragraphs (2) and (3).
            ``(2) Prohibition on texting while driving.--A State statute 
        meets the requirements set forth in this paragraph if the 
        statute--
                    ``(A) prohibits drivers from texting through a 
                personal wireless communications device while driving;
                    ``(B) makes violation of the statute a primary 
                offense; and
                    ``(C) establishes--
                          ``(i) a minimum fine for a first violation of 
                      the statute; and
                          ``(ii) increased fines for repeat violations.
            ``(3) Prohibition on youth cell phone use while driving.--A 
        State statute meets the requirements set forth in this paragraph 
        if the statute--
                    ``(A) prohibits a driver who is younger than 18 
                years of age from using a personal wireless 
                communications device while driving;
                    ``(B) makes violation of the statute a primary 
                offense;
                    ``(C) requires distracted driving issues to be 
                tested as part of the State driver's license 
                examination; and
                    ``(D) establishes--
                          ``(i) a minimum fine for a first violation of 
                      the statute; and
                          ``(ii) increased fines for repeat violations.
            ``(4) Permitted exceptions.--A statute that meets the 
        requirements set forth in paragraphs (2) and (3) may provide 
        exceptions for--
                    ``(A) a driver who uses a personal wireless 
                communications device to contact emergency services;
                    ``(B) emergency services personnel who use a 
                personal wireless communications device while--
                          ``(i) operating an emergency services vehicle; 
                      and
                          ``(ii) engaged in the performance of their 
                      duties as emergency services personnel; and
                    ``(C) an individual employed as a commercial motor 
                vehicle driver or a school bus driver who uses a 
                personal wireless communications device within the scope 
                of such individual's employment if such use is permitted 
                under the regulations promulgated pursuant to section 
                31152 of title 49.

[[Page 126 STAT. 750]]

            ``(5) Use of grant funds.--Of the amounts received by a 
        State under this subsection--
                    ``(A) at least 50 percent shall be used--
                          ``(i) to educate the public through 
                      advertising containing information about the 
                      dangers of texting or using a cell phone while 
                      driving;
                          ``(ii) for traffic signs that notify drivers 
                      about the distracted driving law of the State; or
                          ``(iii) for law enforcement costs related to 
                      the enforcement of the distracted driving law; and
                    ``(B) up to 50 percent may be used for any eligible 
                project or activity under section 402.
            ``(6) Additional grants.--In the first fiscal year that 
        grants are awarded under this subsection, the Secretary may use 
        up to 25 percent of the amounts available for grants under this 
        subsection to award grants to States that--
                    ``(A) enacted statutes before the date of enactment 
                of the Motor Vehicle and Highway Safety Improvement Act 
                of 2012, which meet the requirements set forth in 
                subparagraphs (A) and (B) of paragraph (2); and
                    ``(B) are otherwise ineligible for a grant under 
                this subsection.
            ``(7) Allocation to support state distracted driving laws.--
        Of the amounts available under this subsection in a fiscal year 
        for distracted driving grants, the Secretary may expend up to 
        $5,000,000 for the development and placement of broadcast media 
        to support the enforcement of State distracted driving laws.
            ``(8) Distracted driving study.--
                    ``(A) In general.--The Secretary shall conduct a 
                study of all forms of distracted driving.
                    ``(B) Components.--The study conducted under 
                subparagraph (A) shall--
                          ``(i) examine the effect of distractions other 
                      than the use of personal wireless communications 
                      on motor vehicle safety;
                          ``(ii) identify metrics to determine the 
                      nature and scope of the distracted driving 
                      problem;
                          ``(iii) identify the most effective methods to 
                      enhance education and awareness; and
                          ``(iv) identify the most effective method of 
                      reducing deaths and injuries caused by all forms 
                      of distracted driving.
                    ``(C) Report.--Not later than 1 year after the date 
                of enactment of the Motor Vehicle and Highway Safety 
                Improvement Act of 2012, the Secretary shall submit a 
                report containing the results of the study conducted 
                under this paragraph to--
                          ``(i) the Committee on Commerce, Science, and 
                      Transportation of the Senate; and
                          ``(ii) the Committee on Transportation and 
                      Infrastructure of the House of Representatives.
            ``(9) Definitions.--In this subsection:
                    ``(A) Driving.--The term `driving'--
                          ``(i) means operating a motor vehicle on a 
                      public road, including operation while temporarily 
                      stationary

[[Page 126 STAT. 751]]

                      because of traffic, a traffic light or stop sign, 
                      or otherwise; and
                          ``(ii) does not include operating a motor 
                      vehicle when the vehicle has pulled over to the 
                      side of, or off, an active roadway and has stopped 
                      in a location where it can safely remain 
                      stationary.
                    ``(B) Personal wireless communications device.--The 
                term `personal wireless communications device'--
                          ``(i) means a device through which personal 
                      wireless services (as defined in section 
                      332(c)(7)(C)(i) of the Communications Act of 1934 
                      (47 U.S.C. 332(c)(7)(C)(i))) are transmitted; and
                          ``(ii) does not include a global navigation 
                      satellite system receiver used for positioning, 
                      emergency notification, or navigation purposes.
                    ``(C) Primary offense.--The term `primary offense' 
                means an offense for which a law enforcement officer may 
                stop a vehicle solely for the purpose of issuing a 
                citation in the absence of evidence of another offense.
                    ``(D) Public road.--The term `public road' has the 
                meaning given such term in section 402(c).
                    ``(E) Texting.--The term `texting' means reading 
                from or manually entering data into a personal wireless 
                communications device, including doing so for the 
                purpose of SMS texting, e-mailing, instant messaging, or 
                engaging in any other form of electronic data retrieval 
                or electronic data communication.

    ``(f) Motorcyclist Safety.--
            ``(1) Grants authorized.--Subject to the requirements under 
        this subsection, the Secretary shall award grants to States that 
        adopt and implement effective programs to reduce the number of 
        single- and multi-vehicle crashes involving motorcyclists.
            ``(2) Allocation.--The amount of a grant awarded to a State 
        for a fiscal year under this subsection may not exceed 25 
        percent of the amount apportioned to the State for fiscal year 
        2003 under section 402.
            ``(3) Grant eligibility.--A State becomes eligible for a 
        grant under this subsection by adopting or demonstrating to the 
        satisfaction of the Secretary, at least 2 of the following 
        criteria:
                    ``(A) Motorcycle rider training courses.--An 
                effective motorcycle rider training course that is 
                offered throughout the State, which--
                          ``(i) provides a formal program of instruction 
                      in accident avoidance and other safety-oriented 
                      operational skills to motorcyclists; and
                          ``(ii) may include innovative training 
                      opportunities to meet unique regional needs.
                    ``(B) Motorcyclists awareness program.--An effective 
                statewide program to enhance motorist awareness of the 
                presence of motorcyclists on or near roadways and safe 
                driving practices that avoid injuries to motorcyclists.
                    ``(C) Reduction of fatalities and crashes involving 
                motorcycles.--A reduction for the preceding calendar 
                year in the number of motorcycle fatalities and the rate 
                of

[[Page 126 STAT. 752]]

                motor vehicle crashes involving motorcycles in the State 
                (expressed as a function of 10,000 motorcycle 
                registrations).
                    ``(D) Impaired driving program.--Implementation of a 
                statewide program to reduce impaired driving, including 
                specific measures to reduce impaired motorcycle 
                operation.
                    ``(E) Reduction of fatalities and accidents 
                involving impaired motorcyclists.--A reduction for the 
                preceding calendar year in the number of fatalities and 
                the rate of reported crashes involving alcohol- or drug-
                impaired motorcycle operators (expressed as a function 
                of 10,000 motorcycle registrations).
                    ``(F) Fees collected from motorcyclists.--All fees 
                collected by the State from motorcyclists for the 
                purposes of funding motorcycle training and safety 
                programs will be used for motorcycle training and safety 
                purposes.
            ``(4) Eligible uses.--
                    ``(A) In general.--A State may use funds from a 
                grant under this subsection only for motorcyclist safety 
                training and motorcyclist awareness programs, 
                including--
                          ``(i) improvements to motorcyclist safety 
                      training curricula;
                          ``(ii) improvements in program delivery of 
                      motorcycle training to both urban and rural areas, 
                      including--
                                    ``(I) procurement or repair of 
                                practice motorcycles;
                                    ``(II) instructional materials;
                                    ``(III) mobile training units; and
                                    ``(IV) leasing or purchasing 
                                facilities for closed-course motorcycle 
                                skill training;
                          ``(iii) measures designed to increase the 
                      recruitment or retention of motorcyclist safety 
                      training instructors; and
                          ``(iv) public awareness, public service 
                      announcements, and other outreach programs to 
                      enhance driver awareness of motorcyclists, such as 
                      the `share-the-road' safety messages developed 
                      under subsection (g).
                    ``(B) Suballocations of funds.--An agency of a State 
                that receives a grant under this subsection may 
                suballocate funds from the grant to a nonprofit 
                organization incorporated in that State to carry out 
                this subsection.
            ``(5) Definitions.--In this subsection:
                    ``(A) Motorcyclist awareness.--The term 
                `motorcyclist awareness' means individual or collective 
                awareness of--
                          ``(i) the presence of motorcycles on or near 
                      roadways; and
                          ``(ii) safe driving practices that avoid 
                      injury to motorcyclists.
                    ``(B) Motorcyclist awareness program.--The term 
                `motorcyclist awareness program' means an informational 
                or public awareness program designed to enhance 
                motorcyclist awareness that is developed by or in 
                coordination with the designated State authority having 
                jurisdiction over motorcyclist safety issues, which may 
                include the State motorcycle safety administrator or a 
                motorcycle advisory council appointed by the governor of 
                the State.

[[Page 126 STAT. 753]]

                    ``(C) Motorcyclist safety training.--The term 
                `motorcyclist safety training' means a formal program of 
                instruction that is approved for use in a State by the 
                designated State authority having jurisdiction over 
                motorcyclist safety issues, which may include the State 
                motorcycle safety administrator or a motorcycle advisory 
                council appointed by the governor of the State.
                    ``(D) State.--The term `State' has the meaning given 
                such term in section 101(a) of title 23, United States 
                Code.

    ``(g) State Graduated Driver Licensing Incentive Grant.--
            ``(1) Grants authorized.--Subject to the requirements under 
        this subsection, the Secretary shall award grants to States that 
        adopt and implement graduated driver licensing laws in 
        accordance with the requirements set forth in paragraph (2).
            ``(2) Minimum requirements.--
                    ``(A) In general.--A State meets the requirements 
                set forth in this paragraph if the State has a graduated 
                driver licensing law that requires novice drivers 
                younger than 21 years of age to comply with the 2-stage 
                licensing process described in subparagraph (B) before 
                receiving an unrestricted driver's license.
                    ``(B) Licensing process.--A State is in compliance 
                with the 2-stage licensing process described in this 
                subparagraph if the State's driver's license laws 
                include--
                          ``(i) a learner's permit stage that--
                                    ``(I) is at least 6 months in 
                                duration;
                                    ``(II) prohibits the driver from 
                                using a cellular telephone or any 
                                communications device in a nonemergency 
                                situation; and
                                    ``(III) remains in effect until the 
                                driver--
                                            ``(aa) reaches 16 years of 
                                        age and enters the intermediate 
                                        stage; or
                                            ``(bb) reaches 18 years of 
                                        age;
                          ``(ii) an intermediate stage that--
                                    ``(I) commences immediately after 
                                the expiration of the learner's permit 
                                stage;
                                    ``(II) is at least 6 months in 
                                duration;
                                    ``(III) prohibits the driver from 
                                using a cellular telephone or any 
                                communications device in a nonemergency 
                                situation;
                                    ``(IV) restricts driving at night;
                                    ``(V) prohibits the driver from 
                                operating a motor vehicle with more than 
                                1 nonfamilial passenger younger than 21 
                                years of age unless a licensed driver 
                                who is at least 21 years of age is in 
                                the motor vehicle; and
                                    ``(VI) remains in effect until the 
                                driver reaches 18 years of age; and
                          ``(iii) any other requirement prescribed by 
                      the Secretary of Transportation, including--
                                    ``(I) in the learner's permit 
                                stage--
                                            ``(aa) at least 40 hours of 
                                        behind-the-wheel training with a 
                                        licensed driver who is at least 
                                        21 years of age;
                                            ``(bb) a driver training 
                                        course; and

[[Page 126 STAT. 754]]

                                            ``(cc) a requirement that 
                                        the driver be accompanied and 
                                        supervised by a licensed driver, 
                                        who is at least 21 years of age, 
                                        at all times while such driver 
                                        is operating a motor vehicle; 
                                        and
                                    ``(II) in the learner's permit or 
                                intermediate stage, a requirement, in 
                                addition to any other penalties imposed 
                                by State law, that the grant of an 
                                unrestricted driver's license be 
                                automatically delayed for any individual 
                                who, during the learner's permit or 
                                intermediate stage, is convicted of a 
                                driving-related offense, including--
                                            ``(aa) driving while 
                                        intoxicated;
                                            ``(bb) misrepresentation of 
                                        his or her true age;
                                            ``(cc) reckless driving;
                                            ``(dd) driving without 
                                        wearing a seat belt;
                                            ``(ee) speeding; or
                                            ``(ff) any other driving-
                                        related offense, as determined 
                                        by the Secretary.
            ``(3) Rulemaking.--
                    ``(A) In general.--The Secretary shall promulgate 
                regulations necessary to implement the requirements set 
                forth in paragraph (2), in accordance with the notice 
                and comment provisions under section 553 of title 5.
                    ``(B) <<NOTE: Deadline.>> Exception.--A State that 
                otherwise meets the minimum requirements set forth in 
                paragraph (2) shall be deemed by the Secretary to be in 
                compliance with the requirement set forth in paragraph 
                (2) if the State enacted a law before January 1, 2011, 
                establishing a class of license that permits licensees 
                or applicants younger than 18 years of age to drive a 
                motor vehicle--
                          ``(i) in connection with work performed on, or 
                      for the operation of, a farm owned by family 
                      members who are directly related to the applicant 
                      or licensee; or
                          ``(ii) if demonstrable hardship would result 
                      from the denial of a license to the licensees or 
                      applicants.
            ``(4) Allocation.--Grant funds allocated to a State under 
        this subsection for a fiscal year shall be in proportion to a 
        State's apportionment under section 402 for such fiscal year.
            ``(5) Use of funds.--Of the grant funds received by a State 
        under this subsection--
                    ``(A) at least 25 percent shall be used for--
                          ``(i) enforcing a 2-stage licensing process 
                      that complies with paragraph (2);
                          ``(ii) training for law enforcement personnel 
                      and other relevant State agency personnel relating 
                      to the enforcement described in clause (i);
                          ``(iii) publishing relevant educational 
                      materials that pertain directly or indirectly to 
                      the State graduated driver licensing law;
                          ``(iv) carrying out other administrative 
                      activities that the Secretary considers relevant 
                      to the State's 2-stage licensing process; and
                          ``(v) carrying out a teen traffic safety 
                      program described in section 402(m); and

[[Page 126 STAT. 755]]

                    ``(B) up to 75 percent may be used for any eligible 
                project or activity under section 402.''.

    (b) Conforming Amendment.--The analysis for chapter 4 of title 23, 
United States Code, is amended by striking the item relating to section 
405 and inserting the following:

``405. National priority safety programs.''.

SEC. 31106. HIGH VISIBILITY ENFORCEMENT PROGRAM.

    Section 2009 of SAFETEA-LU (23 U.S.C. 402 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``at least 2'' and inserting ``at 
                least 3''; and
                    (B) by striking ``years 2006 through 2012.'' and 
                inserting ``fiscal years 2013 and 2014. The 
                Administrator may also initiate and support additional 
                campaigns in each of fiscal years 2013 and 2014 for the 
                purposes specified in subsection (b).'';
            (2) in subsection (b), by striking ``either or both'' and 
        inserting ``outcomes related to at least 1'';
            (3) in subsection (c), by inserting ``and Internet-based 
        outreach'' after ``print media advertising'';
            (4) in subsection (e), by striking ``subsections (a), (c), 
        and (f)'' and inserting ``subsection (c)'';
            (5) by striking subsection (f); and
            (6) by redesignating subsection (g) as subsection (f).
SEC. 31107. AGENCY ACCOUNTABILITY.

    Section 412 of title 23, United States Code, is amended--
            (1) by amending subsection (a) to read as follows:

    ``(a) Triennial State Management Reviews.--
            ``(1) <<NOTE: Time period.>> In general.--Except as provided 
        under paragraph (2), the Secretary shall conduct a review of 
        each State highway safety program at least once every 3 years.
            ``(2) Exceptions.--The Secretary may conduct reviews of the 
        highway safety programs of the United States Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands as often as the Secretary determines to be 
        appropriate.
            ``(3) Components.--Reviews under this subsection shall 
        include--
                    ``(A) a management evaluation of all grant programs 
                funded under this chapter;
                    ``(B) an assessment of State data collection and 
                evaluation relating to performance measures established 
                by the Secretary;
                    ``(C) a comparison of State efforts under 
                subparagraphs (A) and (B) to best practices and programs 
                that have been evaluated for effectiveness; and
                    ``(D) the development of recommendations on how each 
                State could--
                          ``(i) improve the management and oversight of 
                      its grant activities; and
                          ``(ii) provide a management and oversight plan 
                      for such grant programs.''; and
            (2) by striking subsection (f).

[[Page 126 STAT. 756]]

SEC. 31108. EMERGENCY MEDICAL SERVICES.

    Section 10202 of Public Law 109-59 (42 U.S.C. 300d-4), is amended by 
adding at the end the following:
    ``(b) National Emergency Medical Services Advisory Council.--
            ``(1) Establishment.--The Secretary of Transportation, in 
        coordination with the Secretary of Health and Human Services and 
        the Secretary of Homeland Security, shall establish a National 
        Emergency Medical Services Advisory Council (referred to in this 
        subsection as the `Advisory Council').
            ``(2) Membership.--The Advisory Council shall be composed of 
        25 members, who--
                    ``(A) shall be appointed by the Secretary of 
                Transportation; and
                    ``(B) shall collectively be representative of all 
                sectors of the emergency medical services community.
            ``(3) <<NOTE: Consultation.>> Purposes.--The purposes of the 
        Advisory Council are to advise and consult with--
                    ``(A) the Federal Interagency Committee on Emergency 
                Medical Services on matters relating to emergency 
                medical services issues; and
                    ``(B) the Secretary of Transportation on matters 
                relating to emergency medical services issues affecting 
                the Department of Transportation.
            ``(4) Administration.--The Administrator of the National 
        Highway Traffic Safety Administration shall provide 
        administrative support to the Advisory Council, including 
        scheduling meetings, setting agendas, keeping minutes and 
        records, and producing reports.
            ``(5) <<NOTE: Deadline.>> Leadership.--The members of the 
        Advisory Council shall annually select a chairperson of the 
        Advisory Council.
            ``(6) Meetings.--The Advisory Council shall meet as 
        frequently as is determined necessary by the chairperson of the 
        Advisory Council.
            ``(7) Annual reports.--The Advisory Council shall prepare an 
        annual report to the Secretary of Transportation regarding the 
        Advisory Council's actions and recommendations.''.
SEC. 31109. REPEAL OF PROGRAMS.

    (a) <<NOTE: 23 USC 406 note.>> General Provision.--A repeal made by 
this section shall not affect amounts apportioned or allocated before 
the effective date of such repeal, provided that such apportioned or 
allocated funds continue to be subject to the requirements to which such 
funds were subject under the repealed section as in effect on the day 
before the date of the repeal.

    (b) Safety Belt Performance Grants.--Section 406 of title 23, United 
States Code, and the item relating to section 406 in the analysis for 
chapter 4 of title 23, United States Code, are repealed.
    (c) Innovative Project Grants.--Section 407 of title 23, United 
States Code, and the item relating to section 407 in the analysis for 
chapter 4, are repealed.
    (d) State Traffic Safety Information System Improvements.--Section 
408 of title 23, United States Code, and the item relating to section 
408 in the analysis for chapter 4, are repealed.

[[Page 126 STAT. 757]]

    (e) Alcohol-impaired Driving Countermeasures.--Section 410 of title 
23, United States Code, and the item relating to section 410 in the 
analysis for chapter 4, are repealed.
    (f) State Highway Safety Data Improvements.--Section 411 of title 
23, United States Code, and the item relating to section 411 in the 
analysis for chapter 4, are repealed.
    (g) Motorcyclist Safety.--Section 2010 of SAFETEA-LU (23 U.S.C. 402 
note), and the item relating to section 2010 in the table of contents 
under section 1(b) of such Act, are repealed.
    (h) Child Safety and Child Booster Seat Incentive Grants.--Section 
2011 of SAFETEA-LU (23 U.S.C. 405 note), and the item relating to 
section 2011 in the table of contents under section 1(b) of that Act, 
are repealed.
    (i) Drug-impaired Driving Enforcement.--Section 2013 of SAFETEA-LU 
(23 U.S.C. 403 note), and the item relating to section 2013 in the table 
of contents under section 1(b) of that Act, are repealed.
    (j) First Responder Vehicle Safety Program.--Section 2014 of 
SAFETEA-LU (23 U.S.C. 402 note), and the item relating to section 2014 
in the table of contents under section 1(b) of that Act, are repealed.
    (k) Rural State Emergency Medical Services Optimization Pilot 
Program.--Section 2016 of SAFETEA-LU (119 Stat. 1541), and the item 
relating to section 2016 in the table of contents under section 1(b) of 
that Act, are repealed.
    (l) Older Driver Safety; Law Enforcement Training.--Section 2017 of 
SAFETEA-LU (119 Stat. 1541) <<NOTE: 23 USC 402 note.>> , and the item 
relating to section 2017 in the table of contents under section 1(b) of 
that Act, are repealed.

                 Subtitle B--Enhanced Safety Authorities

SEC. 31201. DEFINITION OF MOTOR VEHICLE EQUIPMENT.

    Section 30102(a)(7)(C) of title 49, United States Code, is amended 
to read as follows:
                    ``(C) any device or an article or apparel, including 
                a motorcycle helmet and excluding medicine or eyeglasses 
                prescribed by a licensed practitioner, that--
                          ``(i) is not a system, part, or component of a 
                      motor vehicle; and
                          ``(ii) is manufactured, sold, delivered, or 
                      offered to be sold for use on public streets, 
                      roads, and highways with the apparent purpose of 
                      safeguarding users of motor vehicles against risk 
                      of accident, injury, or death.''.
SEC. 31202. PERMIT REMINDER SYSTEM FOR NON-USE OF SAFETY BELTS.

    (a) In General.--Chapter 301 of title 49, United States Code, is 
amended--
            (1) in section 30122, by striking subsection (d); and
            (2) by amending section 30124 to read as follows:
``Sec. 30124. Nonuse of safety belts

    ``A motor vehicle safety standard prescribed under this chapter may 
not require a manufacturer to comply with the standard by

[[Page 126 STAT. 758]]

using a safety belt interlock designed to prevent starting or operating 
a motor vehicle if an occupant is not using a safety belt.''.
    (b) Conforming Amendment.--The analysis for chapter 301 of title 49, 
United States Code, is amended by striking the item relating to section 
30124 and inserting the following:

``Sec. 30124. Nonuse of safety belts.''.

SEC. 31203. CIVIL PENALTIES.

    (a) In General.--Section 30165 of title 49, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``30123(d)'' and inserting 
                      ``30123(a)''; and
                          (ii) by striking ``$15,000,000'' and inserting 
                      ``$35,000,000''; and
                    (B) in paragraph (3), by striking ``$15,000,000'' 
                and inserting ``$35,000,000''; and
            (2) by amending subsection (c) to read as follows:

    ``(c) Relevant Factors in Determining Amount of Penalty or 
Compromise.--In determining the amount of a civil penalty or compromise 
under this section, the Secretary of Transportation shall consider the 
nature, circumstances, extent, and gravity of the violation. Such 
determination shall include, as appropriate--
            ``(1) the nature of the defect or noncompliance;
            ``(2) knowledge by the person charged of its obligations 
        under this chapter;
            ``(3) the severity of the risk of injury;
            ``(4) the occurrence or absence of injury;
            ``(5) the number of motor vehicles or items of motor vehicle 
        equipment distributed with the defect or noncompliance;
            ``(6) actions taken by the person charged to identify, 
        investigate, or mitigate the condition;
            ``(7) the appropriateness of such penalty in relation to the 
        size of the business of the person charged, including the 
        potential for undue adverse economic impacts;
            ``(8) whether the person has been assessed civil penalties 
        under this section during the most recent 5 years; and
            ``(9) other appropriate factors.''.

    (b) <<NOTE: Deadline. Regulations. 49 USC 30165 note.>> Civil 
Penalty Criteria.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall issue a final rule, in accordance with the 
procedures of section 553 of title 5, United States Code, which provides 
an interpretation of the penalty factors described in section 30165(c) 
of title 49, United States Code.

    (c) <<NOTE: 49 USC 30165 note.>> Effective Date.--The amendments 
made by subsection (a) shall take effect on the date that is the earlier 
of the date on which final regulations are issued under subsection (b) 
or 1 year after the date of enactment of this Act.
SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT.

    (a) In General.--Chapter 301 of title 49, United States Code, is 
amended by adding at the end the following:

[[Page 126 STAT. 759]]

      ``SUBCHAPTER V--MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT

``Sec. 30181. Policy

    ``The Secretary of Transportation shall conduct research, 
development, and testing on any area or aspect of motor vehicle safety 
necessary to carry out this chapter.
``Sec. 30182. Powers and duties

    ``(a) In General.--The Secretary of Transportation shall--
            ``(1) conduct motor vehicle safety research, development, 
        and testing programs and activities, including activities 
        related to new and emerging technologies that impact or may 
        impact motor vehicle safety;
            ``(2) collect and analyze all types of motor vehicle and 
        highway safety data and related information to determine the 
        relationship between motor vehicle or motor vehicle equipment 
        performance characteristics and--
                    ``(A) accidents involving motor vehicles; and
                    ``(B) deaths or personal injuries resulting from 
                those accidents.

    ``(b) Activities.--In carrying out a program under this section, the 
Secretary of Transportation may--
            ``(1) promote, support, and advance the education and 
        training of motor vehicle safety staff of the National Highway 
        Traffic Safety Administration in motor vehicle safety research 
        programs and activities, including using program funds for 
        planning, implementing, conducting, and presenting results of 
        program activities, and for related expenses;
            ``(2) obtain experimental and other motor vehicles and motor 
        vehicle equipment for research or testing;
            ``(3)(A) use any test motor vehicles and motor vehicle 
        equipment suitable for continued use, as determined by the 
        Secretary to assist in carrying out this chapter or any other 
        chapter of this title; or
            ``(B) sell or otherwise dispose of test motor vehicles and 
        motor vehicle equipment and use the resulting proceeds to carry 
        out this chapter;
            ``(4) award grants to States and local governments, 
        interstate authorities, and nonprofit institutions; and
            ``(5) enter into cooperative agreements, collaborative 
        research, or contracts with Federal agencies, interstate 
        authorities, State and local governments, other public entities, 
        private organizations and persons, nonprofit institutions, 
        colleges and universities, consumer advocacy groups, 
        corporations, partnerships, sole proprietorships, trade 
        associations, Federal laboratories (including government-owned, 
        government-operated laboratories and government-owned, 
        contractor-operated laboratories), and research organizations.

    ``(c) Use of Public Agencies.--In carrying out this subchapter, the 
Secretary shall avoid duplication by using the services, research, and 
testing facilities of public agencies, as appropriate.
    ``(d) Facilities.--The Secretary may plan, design, and construct a 
new facility or modify an existing facility to conduct research, 
development, and testing in traffic safety, highway safety, and motor 
vehicle safety. <<NOTE: Notification. Time period.>> An expenditure of 
more than $1,500,000 for planning, design, or construction may be made 
only if 60 days

[[Page 126 STAT. 760]]

prior notice of the planning, design, or construction is provided to the 
Committees on Science, Space, and Technology and Transportation and 
Infrastructure of the House of Representatives and the Committees on 
Commerce, Science, and Transportation and Environment and Public Works 
of the Senate. The notice shall include--
            ``(1) a brief description of the facility being planned, 
        designed, or constructed;
            ``(2) the location of the facility;
            ``(3) an estimate of the maximum cost of the facility;
            ``(4) a statement identifying private and public agencies 
        that will use the facility and the contribution each agency will 
        make to the cost of the facility; and
            ``(5) a justification of the need for the facility.

    ``(e) Increasing Costs of Approved Facilities.--The estimated 
maximum cost of a facility noticed under subsection (d) may be increased 
by an amount equal to the percentage increase in construction costs from 
the date the notice is submitted to Congress. However, the increase in 
the cost of the facility may not be more than 10 percent of the 
estimated maximum cost included in the notice. The Secretary shall 
decide what increase in construction costs has occurred.
    ``(f) Availability of Information, Patents, and Developments.-- 
<<NOTE: Public information.>> When the United States Government makes 
more than a minimal contribution to a research or development activity 
under this chapter, the Secretary shall include in the arrangement for 
the activity a provision to ensure that all information, patents, and 
developments related to the activity are available to the public. The 
owner of a background patent may not be deprived of a right under the 
patent.
``Sec. 30183. Prohibition on certain disclosures.

    ``Any report of the National Highway Traffic Safety Administration, 
or of any officer, employee, or contractor of the National Highway 
Traffic Safety Administration, relating to any highway traffic accident 
or the investigation of such accident conducted pursuant to this chapter 
or section 403 of title 23, may be made available to the public only in 
a manner that does not identify individuals.''.
    (b) Conforming Amendments.--
            (1) Amendment of chapter analysis.--The chapter analysis for 
        chapter 301 of title 49, United States Code, is amended by 
        adding at the end the following:

      ``subchapter v--motor vehicle safety research and development

``30181. Policy.
``30182. Powers and duties.
``30183. Prohibition on certain disclosures.''.

            (2) Deletion of redundant material.--Chapter 301 of title 
        49, United States Code, is amended--
                    (A) in the chapter analysis, by striking the item 
                relating to section 30168; and
                    (B) by striking section 30168.
SEC. 31205. ODOMETER REQUIREMENTS.

    (a) Definition.--Section 32702(5) of title 49, United States Code, 
is amended by inserting ``or system of components'' after 
``instrument''.

[[Page 126 STAT. 761]]

    (b) Electronic Disclosures of Odometer Information.--Section 32705 
of title 49, United States Code, is amended by adding at the end the 
following:
    ``(g) <<NOTE: Deadline. Regulations.>> Electronic Disclosures.--Not 
later than 18 months after the date of enactment of the Motor Vehicle 
and Highway Safety Improvement Act of 2012, in carrying out this 
section, the Secretary shall prescribe regulations permitting any 
written disclosures or notices and related matters to be provided 
electronically.''.
SEC. 31206. INCREASED PENALTIES AND DAMAGES FOR ODOMETER FRAUD.

    Chapter 327 of title 49, United States Code, is amended--
            (1) in section 32709(a)(1)--
                    (A) by striking ``$2,000'' and inserting 
                ``$10,000''; and
                    (B) by striking ``$100,000'' and inserting 
                ``$1,000,000''; and
            (2) in section 32710(a), by striking ``$1,500'' and 
        inserting ``$10,000''.
SEC. 31207. EXTEND PROHIBITIONS ON IMPORTING NONCOMPLIANT VEHICLES 
                            AND EQUIPMENT TO DEFECTIVE VEHICLES 
                            AND EQUIPMENT.

    Section 30112 of title 49, United States Code, is amended--
            (1) in subsection (a), by adding at the end the following:

    ``(3) Except as provided in this section, section 30114, subsections 
(i) and (j) of section 30120, and subchapter III, a person may not sell, 
offer for sale, introduce or deliver for introduction in interstate 
commerce, or import into the United States any motor vehicle or motor 
vehicle equipment if the vehicle or equipment contains a defect related 
to motor vehicle safety about which notice was given under section 
30118(c) or an order was issued under section 30118(b). Nothing in this 
paragraph may be construed to prohibit the importation of a new motor 
vehicle that receives a required recall remedy before being sold to a 
consumer in the United States.''; and
            (2) in subsection (b)(2)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by adding ``or'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(C) having no reason to know, despite exercising 
                reasonable care, that a motor vehicle or motor vehicle 
                equipment contains a defect related to motor vehicle 
                safety about which notice was given under section 
                30118(c) or an order was issued under section 
                30118(b);''.
SEC. 31208. CONDITIONS ON IMPORTATION OF VEHICLES AND EQUIPMENT.

    Chapter 301 of title 49, United States Code, is amended--
            (1) in the chapter analysis, by striking the item relating 
        to section 30164 and inserting the following:

``30164. Service of process; conditions on importation of vehicles and 
           equipment.'';

        and
            (2) in section 30164--
                    (A) in the section heading, by adding ``; conditions 
                on importation of vehicles and equipment'' at the end; 
                and

[[Page 126 STAT. 762]]

                    (B) by adding at the end the following:

    ``(c) Identifying Information.--A manufacturer (including an 
importer) offering a motor vehicle or motor vehicle equipment for import 
shall provide, upon request, such information that is necessary to 
identify and track the products as the Secretary, by rule, may specify, 
including--
            ``(1) the product by name and the manufacturer's address; 
        and
            ``(2) each retailer or distributor to which the manufacturer 
        directly supplied motor vehicles or motor vehicle equipment over 
        which the Secretary has jurisdiction under this chapter.

    ``(d) Regulations on the Import of a Motor Vehicle.--The Secretary 
may issue regulations that--
            ``(1) condition the import of a motor vehicle or motor 
        vehicle equipment on the manufacturer's compliance with--
                    ``(A) the requirements under this section;
                    ``(B) paragraph (1) or (3) of section 30112(a) with 
                respect to such motor vehicle or motor vehicle 
                equipment;
                    ``(C) the provision of reports and records required 
                to be maintained with respect to such motor vehicle or 
                motor vehicle equipment under this chapter;
                    ``(D) a request for inspection of premises, vehicle, 
                or equipment under section 30166;
                    ``(E) an order or voluntary agreement to remedy such 
                vehicle or equipment; or
                    ``(F) any rules implementing the requirements 
                described in this subsection;
            ``(2) provide an opportunity for the manufacturer to present 
        information before the Secretary's determination as to whether 
        the manufacturer's imports should be restricted; and
            ``(3) establish a process by which a manufacturer may 
        petition for reinstatement of its ability to import motor 
        vehicles or motor vehicle equipment.

    ``(e) Exception.--The requirements of subsections (c) and (d) shall 
not apply to original manufacturers (or wholly owned subsidiaries) of 
motor vehicles that, prior to the date of enactment of the Motor Vehicle 
and Highway Safety Improvement Act of 2012--
            ``(1) have imported motor vehicles into the United States 
        that are certified to comply with all applicable Federal motor 
        vehicle safety standards;
            ``(2) have submitted to the Secretary appropriate 
        manufacturer identification information under part 566 of title 
        49, Code of Federal Regulations; and
            ``(3) if applicable, have identified a current agent for 
        service of process in accordance with part 551 of title 49, Code 
        of Federal Regulations.

    ``(f) <<NOTE: Coordination.>> Rulemaking.--In issuing regulations 
under this section, the Secretary shall seek to reduce duplicative 
requirements by coordinating with the Department of Homeland 
Security.''.
SEC. 31209. PORT INSPECTIONS; SAMPLES FOR EXAMINATION OR TESTING.

    Section 30166(c) of title 49, United States Code, is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3)--

[[Page 126 STAT. 763]]

                    (A) in subparagraph (A), by inserting ``(including 
                at United States ports of entry)'' after ``held for 
                introduction in interstate commerce''; and
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(4) <<NOTE: Memorandum.>> shall enter into a memorandum of 
        understanding with the Secretary of Homeland Security for 
        inspections and sampling of motor vehicle equipment being 
        offered for import to determine compliance with this chapter or 
        a regulation or order issued under this chapter.''.

               Subtitle C--Transparency and Accountability

SEC. 31301. <<NOTE: 49 USC 30166 note.>> PUBLIC AVAILABILITY OF 
                            RECALL INFORMATION.

    (a) Vehicle Recall Information.-- <<NOTE: Deadline.>> Not later than 
1 year after the date of enactment of this Act, the Secretary shall 
require that motor vehicle safety recall information--
            (1) <<NOTE: Web posting.>> be available to the public on the 
        Internet;
            (2) be searchable by vehicle make and model and vehicle 
        identification number;
            (3) be in a format that preserves consumer privacy; and
            (4) includes information about each recall that has not been 
        completed for each vehicle.

    (b) Rulemaking.--The Secretary may initiate a rulemaking proceeding 
to require each manufacturer to provide the information described in 
subsection (a), with respect to that manufacturer's motor vehicles, on a 
publicly accessible Internet website. Any rules promulgated under this 
subsection--
            (1) shall limit the information that must be made available 
        under this section to include only those recalls issued not more 
        than 15 years prior to the date of enactment of this Act;
            (2) may require information under paragraph (1) to be 
        provided to a dealer or an owner of a vehicle at no charge; and
            (3) shall permit a manufacturer a reasonable period of time 
        after receiving information from a dealer with respect to a 
        vehicle to update the information about the vehicle on the 
        publicly accessible Internet website.

    (c) Promotion of Public Awareness.--The Secretary, in consultation 
with the heads of other relevant agencies, shall promote consumer 
awareness of the information made available to the public pursuant to 
this section.
SEC. 31302. <<NOTE: 49 USC 30101 note.>> NATIONAL HIGHWAY TRAFFIC 
                            SAFETY ADMINISTRATION OUTREACH TO 
                            MANUFACTURER, DEALER, AND MECHANIC 
                            PERSONNEL.

    The <<NOTE: Publicity.>> Secretary shall publicize the means for 
contacting the National Highway Traffic Safety Administration in a 
manner that targets mechanics, passenger motor vehicle dealership 
personnel, and manufacturer personnel.

[[Page 126 STAT. 764]]

SEC. 31303. PUBLIC AVAILABILITY OF COMMUNICATIONS TO DEALERS.

    (a) Internet Accessibility.--Section 30166(f) of title 49, United 
States Code, is amended--
            (1) by striking ``A manufacturer shall give the Secretary of 
        Transportation'' and inserting the following:
            ``(1) In general.--A manufacturer shall give the Secretary 
        of Transportation, and the Secretary shall make available on a 
        publicly accessible Internet website,''; and
            (2) by adding at the end the following:
            ``(2) Index.--Communications required to be submitted to the 
        Secretary under this subsection shall be accompanied by an index 
        to each communication, that--
                    ``(A) identifies the make, model, and model year of 
                the affected vehicles;
                    ``(B) includes a concise summary of the subject 
                matter of the communication; and
                    ``(C) shall be made available by the Secretary to 
                the public on the Internet in a searchable format.''.
SEC. 31304. CORPORATE RESPONSIBILITY FOR NATIONAL HIGHWAY TRAFFIC 
                            SAFETY ADMINISTRATION REPORTS.

    (a) In General.--Section 30166 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(o) Corporate Responsibility for Reports.--
            ``(1) <<NOTE: Certification.>> In general.--The Secretary 
        may promulgate rules requiring a senior official responsible for 
        safety in any company submitting information to the Secretary in 
        response to a request for information in a safety defect or 
        compliance investigation under this chapter to certify that--
                    ``(A) the signing official has reviewed the 
                submission; and
                    ``(B) based on the official's knowledge, the 
                submission does not--
                          ``(i) contain any untrue statement of a 
                      material fact; or
                          ``(ii) omit to state a material fact necessary 
                      in order to make the statements made not 
                      misleading, in light of the circumstances under 
                      which such statements were made.
            ``(2) Notice.--The certification requirements of this 
        section shall be clearly stated on any request for information 
        under paragraph (1).''.

    (b) Civil Penalty.--Section 30165(a) of title 49, United States 
Code, is amended--
            (1) in paragraph (3), by striking ``A person'' and inserting 
        ``Except as provided in paragraph (4), a person''; and
            (2) by adding at the end the following:
            ``(4) False or misleading reports.--A person who knowingly 
        and willfully submits materially false or misleading information 
        to the Secretary, after certifying the same information as 
        accurate under the certification process established pursuant to 
        section 30166(o), shall be subject to a civil penalty of not 
        more than $5,000 per day. The maximum penalty under this 
        paragraph for a related series of daily violations is 
        $1,000,000.''.

[[Page 126 STAT. 765]]

SEC. 31305. PASSENGER MOTOR VEHICLE INFORMATION PROGRAM.

    (a) Definition.--Section 32301 of title 49, United States Code, is 
amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively;
            (2) by inserting before paragraph (2), as redesignated, the 
        following:
            ``(1) `crash avoidance' means preventing or mitigating a 
        crash;''; and
            (3) in paragraph (2), as redesignated, by striking the 
        period at the end and inserting ``; and''.

    (b) Information Included.--Section 32302(a) of title 49, United 
States Code, is amended--
            (1) in paragraph (2), by inserting ``, crash avoidance, and 
        any other areas the Secretary determines will improve the safety 
        of passenger motor vehicles'' after ``crashworthiness''; and
            (2) by striking paragraph (4).
SEC. 31306. PROMOTION OF VEHICLE DEFECT REPORTING.

    Section 32302 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Motor Vehicle Defect Reporting Information.--
            ``(1) Rulemaking required.--Not later than 1 year after the 
        date of enactment of the Motor Vehicle and Highway Safety 
        Improvement Act of 2012, the Secretary shall prescribe 
        regulations that require passenger motor vehicle manufacturers--
                    ``(A) to affix, in the glove compartment or in 
                another readily accessible location on the vehicle, a 
                sticker, decal, or other device that provides, in simple 
                and understandable language, information about how to 
                submit a safety-related motor vehicle defect complaint 
                to the National Highway Traffic Safety Administration;
                    ``(B) to prominently print the information described 
                in subparagraph (A) within the owner's manual; and
                    ``(C) to not place such information on the label 
                required under section 3 of the Automobile Information 
                Disclosure Act (15 U.S.C. 1232).
            ``(2) <<NOTE: Applicability.>> Application.--The 
        requirements under paragraph (1) shall apply to passenger motor 
        vehicles manufactured in any model year beginning more than 1 
        year after the date on which a final rule is published under 
        paragraph (1).''.
SEC. 31307. WHISTLEBLOWER PROTECTIONS FOR MOTOR VEHICLE 
                            MANUFACTURERS, PART SUPPLIERS, AND 
                            DEALERSHIP EMPLOYEES.

    (a) In General.--Subchapter IV of chapter 301 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 30171. Protection of employees providing motor vehicle 
                    safety information

    ``(a) Discrimination Against Employees of Manufacturers, Part 
Suppliers, and Dealerships.--No motor vehicle manufacturer, part 
supplier, or dealership may discharge an employee or otherwise 
discriminate against an employee with respect to compensation, terms, 
conditions, or privileges of employment because

[[Page 126 STAT. 766]]

the employee (or any person acting pursuant to a request of the 
employee)--
            ``(1) provided, caused to be provided, or is about to 
        provide (with any knowledge of the employer) or cause to be 
        provided to the employer or the Secretary of Transportation 
        information relating to any motor vehicle defect, noncompliance, 
        or any violation or alleged violation of any notification or 
        reporting requirement of this chapter;
            ``(2) has filed, caused to be filed, or is about to file 
        (with any knowledge of the employer) or cause to be filed a 
        proceeding relating to any violation or alleged violation of any 
        motor vehicle defect, noncompliance, or any violation or alleged 
        violation of any notification or reporting requirement of this 
        chapter;
            ``(3) testified or is about to testify in such a proceeding;
            ``(4) assisted or participated or is about to assist or 
        participate in such a proceeding; or
            ``(5) objected to, or refused to participate in, any 
        activity that the employee reasonably believed to be in 
        violation of any provision of chapter 301 of this title, or any 
        order, rule, regulation, standard, or ban under such provision.

    ``(b) <<NOTE: Deadlines.>> Complaint Procedure.--
            ``(1) Filing and notification.--A person who believes that 
        he or she has been discharged or otherwise discriminated against 
        by any person in violation of subsection (a) may file (or have 
        any person file on his or her behalf), not later than 180 days 
        after the date on which such violation occurs, a complaint with 
        the Secretary of Labor (hereinafter in this section referred to 
        as the `Secretary') alleging such discharge or discrimination. 
        Upon receipt of such a complaint, the Secretary shall notify, in 
        writing, the person named in the complaint of the filing of the 
        complaint, of the allegations contained in the complaint, of the 
        substance of evidence supporting the complaint, and of the 
        opportunities that will be afforded to such person under 
        paragraph (2).
            ``(2) Investigation; preliminary order.--
                    ``(A) In general.--Not later than 60 
                days <<NOTE: Notifications.>>  after the date of receipt 
                of a complaint filed under paragraph (1) and after 
                affording the person named in the complaint an 
                opportunity to submit to the Secretary a written 
                response to the complaint and an opportunity to meet 
                with a representative of the Secretary to present 
                statements from witnesses, the Secretary shall conduct 
                an investigation and determine whether there is 
                reasonable cause to believe that the complaint has merit 
                and notify, in writing, the complainant and the person 
                alleged to have committed a violation of subsection (a) 
                of the Secretary's findings. If the Secretary concludes 
                that there is a reasonable cause to believe that a 
                violation of subsection (a) has occurred, the Secretary 
                shall accompany the Secretary's findings with a 
                preliminary order providing the relief prescribed by 
                paragraph (3)(B). Not later than 30 days after the date 
                of notification of findings under this paragraph, either 
                the person alleged to have committed the violation or 
                the complainant may file objections to the findings or 
                preliminary order, or both, and request a hearing on the 
                record. The filing of such objections shall not operate 
                to

[[Page 126 STAT. 767]]

                stay any reinstatement remedy contained in the 
                preliminary order. Such hearings shall be conducted 
                expeditiously. If a hearing is not requested in such 30-
                day <<NOTE: Time period.>>  period, the preliminary 
                order shall be deemed a final order that is not subject 
                to judicial review.
                    ``(B) Requirements.--
                          ``(i) Required showing by complainant.--The 
                      Secretary shall dismiss a complaint filed under 
                      this subsection and shall not conduct an 
                      investigation otherwise required under 
                      subparagraph (A) unless the complainant makes a 
                      prima facie showing that any behavior described in 
                      paragraphs (1) through (5) of subsection (a) was a 
                      contributing factor in the unfavorable personnel 
                      action alleged in the complaint.
                          ``(ii) Showing by employer.--Notwithstanding a 
                      finding by the Secretary that the complainant has 
                      made the showing required under clause (i), no 
                      investigation otherwise required under 
                      subparagraph (A) shall be conducted if the 
                      employer demonstrates, by clear and convincing 
                      evidence, that the employer would have taken the 
                      same unfavorable personnel action in the absence 
                      of that behavior.
                          ``(iii) Criteria for determination by 
                      secretary.--The Secretary may determine that a 
                      violation of subsection (a) has occurred only if 
                      the complainant demonstrates that any behavior 
                      described in paragraphs (1) through (5) of 
                      subsection (a) was a contributing factor in the 
                      unfavorable personnel action alleged in the 
                      complaint.
                          ``(iv) Prohibition.--Relief may not be ordered 
                      under subparagraph (A) if the employer 
                      demonstrates, by clear and convincing evidence, 
                      that the employer would have taken the same 
                      unfavorable personnel action in the absence of 
                      that behavior.
            ``(3) Final order.--
                    ``(A) Deadline for issuance; settlement 
                agreements.--Not later than 120 days after the date of 
                conclusion of a hearing under paragraph (2), the 
                Secretary shall issue a final order providing the relief 
                prescribed by this paragraph or denying the complaint. 
                At any time before issuance of a final order, a 
                proceeding under this subsection may be terminated on 
                the basis of a settlement agreement entered into by the 
                Secretary, the complainant, and the person alleged to 
                have committed the violation.
                    ``(B) Remedy.--If, in response to a complaint filed 
                under paragraph (1), the Secretary determines that a 
                violation of subsection (a) has occurred, the Secretary 
                shall order the person who committed such violation--
                          ``(i) to take affirmative action to abate the 
                      violation;
                          ``(ii) to reinstate the complainant to his or 
                      her former position together with the compensation 
                      (including back pay) and restore the terms, 
                      conditions, and privileges associated with his or 
                      her employment; and
                          ``(iii) to provide compensatory damages to the 
                      complainant.

[[Page 126 STAT. 768]]

                    ``(C) Attorneys' fees.--If such an order is issued 
                under this paragraph, the Secretary, at the request of 
                the complainant, shall assess against the person against 
                whom the order is issued a sum equal to the aggregate 
                amount of all costs and expenses (including attorneys' 
                and expert witness fees) reasonably incurred, as 
                determined by the Secretary, by the complainant for, or 
                in connection with, bringing the complaint upon which 
                the order was issued.
                    ``(D) Frivolous complaints.--If the Secretary 
                determines that a complaint under paragraph (1) is 
                frivolous or has been brought in bad faith, the 
                Secretary may award to the prevailing employer a 
                reasonable attorney's fee not exceeding $1,000.
                    ``(E) <<NOTE: Deadline.>> De novo review.--With 
                respect to a complaint under paragraph (1), if the 
                Secretary has not issued a final decision within 210 
                days after the filing of the complaint and if the delay 
                is not due to the bad faith of the employee, the 
                employee may bring an original action at law or equity 
                for de novo review in the appropriate district court of 
                the United States, which shall have jurisdiction over 
                such an action without regard to the amount in 
                controversy, and which action shall, at the request of 
                either party to the action, be tried by the court with a 
                jury. The action shall be governed by the same legal 
                burdens of proof specified in paragraph (2)(B) for 
                review by the Secretary.
            ``(4) Review.--
                    ``(A) Appeal to court of appeals.--Any person 
                adversely affected or aggrieved by an order issued under 
                paragraph (3) may obtain review of the order in the 
                United States Court of Appeals for the circuit in which 
                the violation, with respect to which the order was 
                issued, allegedly occurred or the circuit in which the 
                complainant resided on the date of such 
                violation. <<NOTE: Deadline.>> The petition for review 
                shall be filed not later than 60 days after the date of 
                the issuance of the final order of the Secretary. Review 
                shall conform to chapter 7 of title 5. The commencement 
                of proceedings under this subparagraph shall not, unless 
                ordered by the court, operate as a stay of the order.
                    ``(B) Limitation on collateral attack.--An order of 
                the Secretary with respect to which review could have 
                been obtained under subparagraph (A) shall not be 
                subject to judicial review in any criminal or other 
                civil proceeding.
            ``(5) Enforcement of order by secretary.--Whenever any 
        person fails to comply with an order issued under paragraph (3), 
        the Secretary may file a civil action in the United States 
        district court for the district in which the violation was found 
        to occur to enforce such order. In actions brought under this 
        paragraph, the district courts shall have jurisdiction to grant 
        all appropriate relief, including injunctive relief and 
        compensatory damages.
            ``(6) Enforcement of order by parties.--
                    ``(A) Commencement of action.--A person on whose 
                behalf an order was issued under paragraph (3) may 
                commence a civil action against the person to whom such 
                order was issued to require compliance with such order.

[[Page 126 STAT. 769]]

                The appropriate United States district court shall have 
                jurisdiction, without regard to the amount in 
                controversy or the citizenship of the parties, to 
                enforce such order.
                    ``(B) Attorney fees.--The court, in issuing any 
                final order under this paragraph, may award costs of 
                litigation (including reasonable attorney and expert 
                witness fees) to any party whenever the court determines 
                such award is appropriate.

    ``(c) Mandamus.--Any nondiscretionary duty imposed under this 
section shall be enforceable in a mandamus proceeding brought under 
section 1361 of title 28.
    ``(d) Nonapplicability To Deliberate Violations.--Subsection (a) 
shall not apply with respect to an employee of a motor vehicle 
manufacturer, part supplier, or dealership who, acting without direction 
from such motor vehicle manufacturer, part supplier, or dealership (or 
such person's agent), deliberately causes a violation of any requirement 
relating to motor vehicle safety under this chapter.''.
    (b) Government Accountability Office Report.--Not later than 2 years 
after the date of enactment of this Act, the Comptroller General of the 
United States shall--
            (1) <<NOTE: Study.>> conduct a study of the whistleblower 
        protections established by law with respect to this program, and 
        update its study of other such programs administered by the 
        Secretary of Transportation; and
            (2) submit to Congress a report of the results of the study 
        under paragraph (1), including--
                    (A) an identification of the differences between the 
                provisions applicable to different programs, the number 
                of claims brought pursuant to each provision, and the 
                outcome of each claim; and
                    (B) any recommendations for program changes that the 
                Comptroller General considers appropriate based on the 
                study under paragraph (1).

    (c) Conforming Amendment.--The table of sections for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30170 the following:

``30171. Protection of employees providing motor vehicle safety 
           information.''.

SEC. 31308. ANTI-REVOLVING DOOR.

    (a) Study of Department of Transportation Policies on Official 
Communication With Former Motor Vehicle Safety Issue Employees.-- 
<<NOTE: Deadline.>> Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
shall--
            (1) <<NOTE: Review.>> review the Department of 
        Transportation's policies and procedures applicable to official 
        communication with former employees concerning motor vehicle 
        safety compliance matters for which they had responsibility 
        during the last 12 months of their tenure at the Department, 
        including any limitations on the ability of such employees to 
        submit comments, or otherwise communicate directly with the 
        Department, on motor vehicle safety issues; and
            (2) <<NOTE: Reports.>> submit a report to the Committee on 
        Commerce, Science, and Transportation of the Senate and the 
        Committee on Energy and Commerce of the House of Representatives 
        that contains

[[Page 126 STAT. 770]]

        the Inspector General's findings, conclusions, and 
        recommendations for strengthening those policies and procedures 
        to minimize the risk of undue influence without compromising the 
        ability of the Department to employ and retain highly qualified 
        individuals for such responsibilities.

    (b) <<NOTE: 49 USC 323 note.>> Post-Employment Policy Study.--
            (1) In general.--The Inspector General of the Department of 
        Transportation shall conduct a study of the Department's 
        policies relating to post-employment restrictions on employees 
        who perform functions related to transportation safety.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Inspector General shall submit a 
        report containing the results of the study conducted under 
        paragraph (1) to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives; and
                    (C) the Secretary of Transportation.
            (3) <<NOTE: Review.>> Use of results.--The Secretary of 
        Transportation shall review the results of the study conducted 
        under paragraph (1) and take whatever action the Secretary 
        determines to be appropriate.
SEC. 31309. STUDY OF CRASH DATA COLLECTION.

    (a) <<NOTE: Deadline. Reports.>> In General.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall submit a 
report to the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Energy and Commerce of the House of 
Representatives regarding the quality of data collected through the 
National Automotive Sampling System, including the Special Crash 
Investigations Program.

    (b) Review.--The Administrator of the National Highway Traffic 
Safety Administration (referred to in this section as the 
``Administration'') shall conduct a comprehensive review of the data 
elements collected from each crash to determine if additional data 
should be collected. The review under this subsection shall include 
input from interested parties, including suppliers, automakers, safety 
advocates, the medical community, and research organizations.
    (c) Contents.--The report issued under this section shall include--
            (1) the analysis and conclusions the Administration can 
        reach from the amount of motor vehicle crash data collected in a 
        given year;
            (2) the additional analysis and conclusions the 
        Administration could reach if more crash investigations were 
        conducted each year;
            (3) the number of investigations per year that would allow 
        for optimal data analysis and crash information;
            (4) the results of the comprehensive review conducted 
        pursuant to subsection (b);
            (5) the incremental costs of collecting and analyzing 
        additional data, as well as data from additional crashes;
            (6) the potential for obtaining private funding for all or a 
        portion of the costs under paragraph (5);

[[Page 126 STAT. 771]]

            (7) the potential for recovering any additional costs from 
        high volume users of the data, while continuing to make the data 
        available to the general public free of charge;
            (8) the advantages or disadvantages of expanding collection 
        of non-crash data instead of crash data;
            (9) recommendations for improvements to the Administration's 
        data collection program; and
            (10) the resources needed by the Administration to implement 
        such recommendations.
SEC. 31310. UPDATE MEANS OF PROVIDING NOTIFICATION; IMPROVING 
                            EFFICACY OF RECALLS.

    (a) Update of Means of Providing Notification.--Section 30119(d) of 
title 49, United States Code, is amended--
            (1) in paragraph (1), by striking ``by first class mail'' 
        and inserting ``in the manner prescribed by the Secretary, by 
        regulation'';
            (2) in paragraph (2)--
                    (A) by striking ``(except a tire) shall be sent by 
                first class mail'' and inserting ``shall be sent in the 
                manner prescribed by the Secretary, by regulation,''; 
                and
                    (B) by striking the second sentence;
            (3) in paragraph (3)--
                    (A) by striking the first sentence;
                    (B) by inserting ``to the notification required 
                under paragraphs (1) and (2)'' after ``addition''; and
                    (C) by inserting ``by the manufacturer'' after 
                ``given''; and
            (4) in paragraph (4), by striking ``by certified mail or 
        quicker means if available'' and inserting ``in the manner 
        prescribed by the Secretary, by regulation''.

    (b) Improving Efficacy of Recalls.--Section 30119(e) of title 49, 
United States Code, is amended--
            (1) in the subsection heading, by striking ``Second'' and 
        inserting ``Additional'';
            (2) by striking ``If the Secretary'' and inserting the 
        following:
            ``(1) Second notification.--If the Secretary''; and
            (3) by adding at the end the following:
            ``(2) Additional notifications.--If the Secretary 
        determines, after taking into account the severity of the defect 
        or noncompliance, that the second notification by a manufacturer 
        does not result in an adequate number of motor vehicles or items 
        of replacement equipment being returned for remedy, the 
        Secretary may order the manufacturer--
                    ``(A)(i) to send additional notifications in the 
                manner prescribed by the Secretary, by regulation; or
                    ``(ii) to take additional steps to locate and notify 
                each person registered under State law as the owner or 
                lessee or the most recent purchaser or lessee, as 
                appropriate; and
                    ``(B) to emphasize the magnitude of the safety risk 
                caused by the defect or noncompliance in such 
                notification.''.
SEC. 31311. EXPANDING CHOICES OF REMEDY AVAILABLE TO MANUFACTURERS 
                            OF REPLACEMENT EQUIPMENT.

    Section 30120 of title 49, United States Code, is amended--

[[Page 126 STAT. 772]]

            (1) in subsection (a)(1), by amending subparagraph (B) to 
        read as follows:
                    ``(B) if replacement equipment, by repairing the 
                equipment, replacing the equipment with identical or 
                reasonably equivalent equipment, or by refunding the 
                purchase price.'';
            (2) in the heading of subsection (i), by adding ``of New 
        Vehicles or Equipment'' at the end; and
            (3) in the heading of subsection (j), by striking 
        ``replaced'' and inserting ``replacement''.
SEC. 31312. RECALL OBLIGATIONS AND BANKRUPTCY OF MANUFACTURER.

    (a) In General.--Chapter 301 of title 49, United States Code, is 
amended by inserting the following after section 30120:
``Sec. 30120A. Recall obligations and bankruptcy of a manufacturer

    ``A manufacturer's filing of a petition in bankruptcy under chapter 
11 of title 11, does not negate the manufacturer's duty to comply with 
section 30112 or sections 30115 through 30120 of this title. In any 
bankruptcy proceeding, the manufacturer's obligations under such 
sections shall be treated as a claim of the United States Government 
against such manufacturer, subject to subchapter II of chapter 37 of 
title 31, United States Code, and given priority pursuant to section 
3713(a)(1)(A) of such chapter, notwithstanding section 3713(a)(2), to 
ensure that consumers are adequately protected from any safety defect or 
noncompliance determined to exist in the manufacturer's 
products. <<NOTE: Applicability.>> This section shall apply equally to 
actions of a manufacturer taken before or after the filing of a petition 
in bankruptcy.''.

    (b) Conforming Amendment.--The chapter analysis of chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30120 the following:

``30120A. Recall obligations and bankruptcy of a manufacturer.''.

SEC. 31313. REPEAL OF INSURANCE REPORTS AND INFORMATION PROVISION.

    Chapter 331 of title 49, United States Code, is amended--
            (1) in the chapter analysis, by striking the item relating 
        to section 33112; and
            (2) by striking section 33112.
SEC. 31314. MONRONEY STICKER TO PERMIT ADDITIONAL SAFETY RATING 
                            CATEGORIES.

    Section 3(g)(2) of the Automobile Information Disclosure Act (15 
U.S.C. 1232(g)(2)), is amended by inserting ``safety rating categories 
that may include'' after ``refers to''.

          Subtitle D--Vehicle Electronics and Safety Standards

SEC. 31401. <<NOTE: 49 USC 105 note.>> NATIONAL HIGHWAY TRAFFIC 
                            SAFETY ADMINISTRATION ELECTRONICS, 
                            SOFTWARE, AND ENGINEERING EXPERTISE.

    (a) <<NOTE: Establishment.>> Council for Vehicle Electronics, 
Vehicle Software, and Emerging Technologies.--

[[Page 126 STAT. 773]]

            (1) In general.--The Secretary shall establish, within the 
        National Highway Traffic Safety Administration, a Council for 
        Vehicle Electronics, Vehicle Software, and Emerging Technologies 
        (referred to in this section as the ``Council'') to build, 
        integrate, and aggregate the Administration's expertise in 
        passenger motor vehicle electronics and other new and emerging 
        technologies.
            (2) Implementation of roadmap.--The Council shall research 
        the inclusion of emerging lightweight plastic and composite 
        technologies in motor vehicles to increase fuel efficiency, 
        lower emissions, meet fuel economy standards, and enhance 
        passenger motor vehicle safety through continued utilization of 
        the Administration's Plastic and Composite Intensive Vehicle 
        Safety Roadmap (Report No. DOT HS 810 863).
            (3) Intra-agency coordination.--The Council shall coordinate 
        with all components of the Administration responsible for 
        vehicle safety, including research and development, rulemaking, 
        and defects investigation.

    (b) Honors Recruitment Program.--
            (1) Establishment.--The Secretary shall establish, within 
        the National Highway Traffic Safety Administration, an honors 
        program for engineering students, computer science students, and 
        other students interested in vehicle safety that will enable 
        such students to train with engineers and other safety officials 
        for careers in vehicle safety.
            (2) Stipend.--The Secretary is authorized to provide a 
        stipend to any student during the student's participation in the 
        program established under paragraph (1).

    (c) Assessment.--The Council, in consultation with affected 
stakeholders, shall periodically assess the implications of emerging 
safety technologies in passenger motor vehicles, including the effect of 
such technologies on consumers, product availability, and cost.
SEC. 31402. ELECTRONIC SYSTEMS PERFORMANCE.

    (a) <<NOTE: Deadline.>> In General.--Not later than 2 years after 
the date of enactment of this Act, the Secretary shall complete an 
examination of the need for safety standards with regard to electronic 
systems in passenger motor vehicles. In conducting this examination, the 
Secretary shall--
            (1) consider the electronic components, the interaction of 
        electronic components, the security needs for those electronic 
        systems to prevent unauthorized access, and the effect of 
        surrounding environments on the electronic systems; and
            (2) allow for public comment.

    (b) Report.--Upon completion of the examination under subsection 
(a), the Secretary shall submit a report on the highest priority areas 
for safety with regard to the electronic systems to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Energy and Commerce of the House of Representatives.

                   Subtitle E--Child Safety Standards

SEC. <<NOTE: 49 USC 30127 note.>> 31501. CHILD SAFETY SEATS.

    (a) <<NOTE: Deadline. Regulations.>> Side Impact Crashes.--Not later 
than 2 years after the date of enactment of this Act, the Secretary 
shall issue a final

[[Page 126 STAT. 774]]

rule amending Federal Motor Vehicle Safety Standard Number 213 to 
improve the protection of children seated in child restraint systems 
during side impact crashes.

    (b) <<NOTE: Deadlines.>> Frontal Impact Test Parameters.--
            (1) Commencement.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall commence a rulemaking 
        proceeding to amend the standard seat assembly specifications 
        under Federal Motor Vehicle Safety Standard Number 213 to better 
        simulate a single representative motor vehicle rear seat.
            (2) Final rule.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall issue a final rule 
        pursuant to paragraph (1).
SEC. 31502. <<NOTE: Deadlines. 49 USC 30127 note.>> CHILD 
                            RESTRAINT ANCHORAGE SYSTEMS.

    (a) Initiation of Rulemaking Proceeding.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall initiate a 
rulemaking proceeding to amend Federal Motor Vehicle Safety Standard 
Number 225 (relating to child restraint anchorage systems) to improve 
the ease of use for lower anchorages and tethers in all rear seat 
seating positions if such anchorages and tethers are feasible.
    (b) Final Rule.--
            (1) In general.--Except as provided under paragraph (2) and 
        section 31505, the Secretary shall issue a final rule under 
        subsection (a) not later than 3 years after the date of 
        enactment of this Act.
            (2) Report.--If the Secretary determines that an amendment 
        to the standard referred to in subsection (a) does not meet the 
        requirements and considerations set forth in subsections (a) and 
        (b) of section 30111 of title 49, United States Code, the 
        Secretary shall submit a report describing the reasons for not 
        prescribing such a standard to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives.
SEC. 31503. <<NOTE: Deadlines. 49 USC 30127 note.>> REAR SEAT BELT 
                            REMINDERS.

    (a) Initiation of Rulemaking Proceeding.--Not later than 2 years 
after the date of enactment of this Act, the Secretary shall initiate a 
rulemaking proceeding to amend Federal Motor Vehicle Safety Standard 
Number 208 (relating to occupant crash protection) to provide a safety 
belt use warning system for designated seating positions in the rear 
seat.
    (b) Final Rule.--
            (1) In general.--Except as provided under paragraph (2) and 
        section 31505, the Secretary shall issue a final rule under 
        subsection (a) not later than 3 years after the date of 
        enactment of this Act.
            (2) Report.--If the Secretary determines that an amendment 
        to the standard referred to in subsection (a) does not meet the 
        requirements and considerations set forth in subsections (a) and 
        (b) of section 30111 of title 49, United States Code, the 
        Secretary shall submit a report describing the reasons for not 
        prescribing such a standard to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and

[[Page 126 STAT. 775]]

                    (B) the Committee on Energy and Commerce of the 
                House of Representatives.
SEC. 31504. <<NOTE: 49 USC 30111 note.>> UNATTENDED PASSENGER 
                            REMINDERS.

    (a) Safety Research Initiative.--The Secretary may initiate research 
into effective ways to minimize the risk of hyperthermia or hypothermia 
to children or other unattended passengers in rear seating positions.
    (b) Research Areas.--In carrying out subsection (a), the Secretary 
may conduct research into the potential viability of--
            (1) vehicle technology to provide an alert that a child or 
        unattended passenger remains in a rear seating position after 
        the vehicle motor is disengaged; or
            (2) public awareness campaigns to educate drivers on the 
        risks of leaving a child or unattended passenger in a vehicle 
        after the vehicle motor is disengaged; or
            (3) other ways to mitigate risk.

    (c) Coordination With Other Agencies.--The Secretary may collaborate 
with other Federal agencies in conducting the research under this 
section.
SEC. 31505. <<NOTE: 49 USC 30127 note.>> NEW DEADLINE.

    If the Secretary determines that any deadline for issuing a final 
rule under this Act cannot be met, the Secretary shall--
            (1) provide the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Energy and 
        Commerce of the House of Representatives with an explanation for 
        why such deadline cannot be met; and
            (2) establish a new deadline for that rule.

 Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural 
                                Equipment

SEC. 31601. <<NOTE: 49 USC 30111 note.>> RULEMAKING ON VISIBILITY 
                            OF AGRICULTURAL EQUIPMENT.

    (a) Definitions.--In this section:
            (1) Agricultural equipment.--The term ``agricultural 
        equipment'' has the meaning given the term ``agricultural field 
        equipment'' in ASABE Standard 390.4, entitled ``Definitions and 
        Classifications of Agricultural Field Equipment'', which was 
        published in January 2005 by the American Society of Agriculture 
        and Biological Engineers, or any successor standard.
            (2) Public road.--The term ``public road'' has the meaning 
        given the term in section 101(a)(27) of title 23, United States 
        Code.

    (b) Rulemaking.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 2 years 
        after the date of enactment of this Act, the Secretary of 
        Transportation, after consultation with representatives of the 
        American Society of Agricultural and Biological Engineers and 
        appropriate Federal agencies, and with other appropriate 
        persons, shall promulgate a rule to improve the daytime and 
        nighttime visibility of agricultural equipment that may be 
        operated on a public road.
            (2) Minimum standards.--The rule promulgated pursuant to 
        this subsection shall--

[[Page 126 STAT. 776]]

                    (A) establish minimum lighting and marking standards 
                for applicable agricultural equipment manufactured at 
                least 1 year after the date on which such rule is 
                promulgated; and
                    (B) provide for the methods, materials, 
                specifications, and equipment to be employed to comply 
                with such standards, which shall be equivalent to ASABE 
                Standard 279.14, entitled ``Lighting and Marking of 
                Agricultural Equipment on Highways'', which was 
                published in July 2008 by the American Society of 
                Agricultural and Biological Engineers, or any successor 
                standard.

    (c) <<NOTE: Time period.>> Review.--Not less frequently than once 
every 5 years, the Secretary of Transportation shall--
            (1) review the standards established pursuant to subsection 
        (b); and
            (2) revise such standards to reflect the revision of ASABE 
        Standard 279 that is in effect at the time of such review.

    (d) Limitations.--
            (1) Compliance with successor standards.--Any rule 
        promulgated pursuant to this section may not prohibit the 
        operation on public roads of agricultural equipment that is 
        equipped in accordance with any adopted revision of ASABE 
        Standard 279 that is later than the revision of such standard 
        that was referenced during the promulgation of the rule.
            (2) No retrofitting required.--Any rule promulgated pursuant 
        to this section may not require the retrofitting of agricultural 
        equipment that was manufactured before the date on which the 
        lighting and marking standards are enforceable under subsection 
        (b)(2)(A).
            (3) No effect on additional materials and equipment.--Any 
        rule promulgated pursuant to this section may not prohibit the 
        operation on public roads of agricultural equipment that is 
        equipped with materials or equipment that are in addition to the 
        minimum materials and equipment specified in the standard upon 
        which such rule is based.

 TITLE II-- <<NOTE: Commercial Motor Vehicle Safety Enhancement Act of 
2012.>> COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012
SEC. 32001. <<NOTE: 49 USC 30101 note.>> SHORT TITLE.

    This title may be cited as the ``Commercial Motor Vehicle Safety 
Enhancement Act of 2012''.
SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

[[Page 126 STAT. 777]]

            Subtitle A--Commercial Motor Vehicle Registration

SEC. 32101. REGISTRATION OF MOTOR CARRIERS.

    (a) Registration Requirements.--Section 13902(a)(1) is amended to 
read as follows:
            ``(1) In general.--Except as otherwise provided in this 
        section, the Secretary of Transportation shall register a person 
        to provide transportation subject to jurisdiction under 
        subchapter I of chapter 135 as a motor carrier only if the 
        Secretary determines that the person--
                    ``(A) is willing and able to comply with--
                          ``(i) this part and the applicable regulations 
                      of the Secretary and the Board;
                          ``(ii) any safety regulations imposed by the 
                      Secretary;
                          ``(iii) the duties of employers and employees 
                      established by the Secretary under section 31135;
                          ``(iv) the safety fitness requirements 
                      established by the Secretary under section 31144;
                          ``(v) the accessibility requirements 
                      established by the Secretary under subpart H of 
                      part 37 of title 49, Code of Federal Regulations 
                      (or successor regulations), for transportation 
                      provided by an over-the-road bus; and
                          ``(vi) the minimum financial responsibility 
                      requirements established by the Secretary under 
                      sections 13906, 31138, and 31139;
                    ``(B) has been issued a USDOT number under section 
                31134;
                    ``(C) has disclosed any relationship involving 
                common ownership, common management, common control, or 
                common familial relationship between that person and any 
                other motor carrier, freight forwarder, or broker, or 
                any other applicant for motor carrier, freight 
                forwarder, or broker registration, if the relationship 
                occurred in the 3-year period preceding the date of the 
                filing of the application for registration; and
                    ``(D) after the Secretary establishes a written 
                proficiency examination pursuant to section 32101(b) of 
                the Commercial Motor Vehicle Safety Enhancement Act of 
                2012, has passed the written proficiency examination.''.

    (b) <<NOTE: 49 USC 13902 note.>> Written Proficiency Examination.--
            Not <<NOTE: Deadline.>> later than 18 months after the date 
        of enactment of this Act, the Secretary shall establish through 
        a rulemaking a written proficiency examination for applicant 
        motor carriers pursuant to section 13902(a)(1)(D) of title 49, 
        United States Code. The written proficiency examination shall 
        test a person's knowledge of applicable safety regulations, 
        standards, and orders of the Federal government.

    (c) Conforming Amendment.--Section 210(b) of the Motor Carrier 
Safety Improvement Act of 1999 (49 U.S.C. 31144 note) is amended--
            (1) by inserting ``, commercial regulations, and provisions 
        of subpart H of part 37 of title 49, Code of Federal 
        Regulations,

[[Page 126 STAT. 778]]

        or successor regulations'' after ``applicable safety 
        regulations''; and
            (2) by striking ``consider the establishment of'' and 
        inserting ``establish''.

    (d) Transportation of Agricultural Commodities and Farm Supplies.--
Section 229(a)(1) of the Motor Carrier Safety Improvement Act of 1999 
(49 U.S.C. 31136 note) is amended to read as follows:
            ``(1) Transportation of agricultural commodities and farm 
        supplies.--Regulations prescribed by the Secretary under 
        sections 31136 and 31502 regarding maximum driving and on-duty 
        time for drivers used by motor carriers shall not apply during 
        planting and harvest periods, as determined by each State, to--
                    ``(A) drivers transporting agricultural commodities 
                from the source of the agricultural commodities to a 
                location within a 150 air-mile radius from the source;
                    ``(B) drivers transporting farm supplies for 
                agricultural purposes from a wholesale or retail 
                distribution point of the farm supplies to a farm or 
                other location where the farm supplies are intended to 
                be used within a 150 air-mile radius from the 
                distribution point; or
                    ``(C) drivers transporting farm supplies for 
                agricultural purposes from a wholesale distribution 
                point of the farm supplies to a retail distribution 
                point of the farm supplies within a 150 air-mile radius 
                from the wholesale distribution point.''.
SEC. 32102. SAFETY FITNESS OF NEW OPERATORS.

    (a) Safety Reviews of New Operators.--Section 31144(g)(1) is amended 
to read as follows:
            ``(1) <<NOTE: Regulations. Deadlines.>> Safety review.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), the Secretary shall require, by 
                regulation, each owner and each operator granted new 
                registration under section 13902 or 31134 to undergo a 
                safety review not later than 12 months after the owner 
                or operator, as the case may be, begins operations under 
                such registration.
                    ``(B) Providers of motorcoach services.--The 
                Secretary shall require, by regulation, each owner and 
                each operator granted new registration to transport 
                passengers under section 13902 or 31134 to undergo a 
                safety review not later than 120 days after the owner or 
                operator, as the case may be, begins operations under 
                such registration.''.

    (b) <<NOTE: 49 USC 31144 note.>> Effective Date.--The amendments 
made by subsection (a) shall take effect 1 year after the date of 
enactment of this Act.
SEC. 32103. REINCARNATED CARRIERS.

    (a) Effective Periods of Registration.--
            (1) Suspensions, amendments, and revocations.--Section 
        13905(d) is amended--
                    (A) by redesignating paragraph (2) as paragraph (4);
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) Applications.--On application of the registrant, the 
        Secretary may amend or revoke a registration.

[[Page 126 STAT. 779]]

            ``(2) Complaints and actions on secretary's own 
        initiative.--On complaint or on the Secretary's own initiative 
        and after notice and an opportunity for a proceeding, the 
        Secretary may--
                    ``(A) suspend, amend, or revoke any part of the 
                registration of a motor carrier, broker, or freight 
                forwarder for willful failure to comply with--
                          ``(i) this part;
                          ``(ii) an applicable regulation or order of 
                      the Secretary or the Board, including the 
                      accessibility requirements established by the 
                      Secretary under subpart H of part 37 of title 49, 
                      Code of Federal Regulations (or successor 
                      regulations), for transportation provided by an 
                      over-the-road bus; or
                          ``(iii) a condition of its registration;
                    ``(B) withhold, suspend, amend, or revoke any part 
                of the registration of a motor carrier, broker, or 
                freight forwarder for failure--
                          ``(i) to pay a civil penalty imposed under 
                      chapter 5, 51, 149, or 311;
                          ``(ii) to arrange and abide by an acceptable 
                      payment plan for such civil penalty, not later 
                      than 90 days after the date specified by order of 
                      the Secretary for the payment of such penalty; or
                          ``(iii) for failure to obey a subpoena issued 
                      by the Secretary;
                    ``(C) withhold, suspend, amend, or revoke any part 
                of a registration of a motor carrier, broker, or freight 
                forwarder following a determination by the Secretary 
                that the motor carrier, broker, or freight forwarder 
                failed to disclose, in its application for registration, 
                a material fact relevant to its willingness and ability 
                to comply with--
                          ``(i) this part;
                          ``(ii) an applicable regulation or order of 
                      the Secretary or the Board; or
                          ``(iii) a condition of its registration; or
                    ``(D) withhold, suspend, amend, or revoke any part 
                of a registration of a motor carrier, broker, or freight 
                forwarder if the Secretary finds that--
                          ``(i) the motor carrier, broker, or freight 
                      forwarder does not disclose any relationship 
                      through common ownership, common management, 
                      common control, or common familial relationship to 
                      any other motor carrier, broker, or freight 
                      forwarder, or any other applicant for motor 
                      carrier, broker, or freight forwarder registration 
                      that the Secretary determines is or was unwilling 
                      or unable to comply with the relevant requirements 
                      listed in section 13902, 13903, or 13904
            ``(3) Limitation.--Paragraph (2)(B) shall not apply to a 
        person who is unable to pay a civil penalty because the person 
        is a debtor in a case under chapter 11 of title 11.''; and
                    (C) in paragraph (4), as redesignated by section 
                32103(a)(1)(A) of this Act, by striking ``paragraph 
                (1)(B)'' and inserting ``paragraph (2)(B)''.
            (2) Procedure.--Section 13905(e) is amended by inserting 
        ``or if the Secretary determines that the registrant failed to

[[Page 126 STAT. 780]]

        disclose a material fact in an application for registration in 
        accordance with subsection (d)(2)(C),'' after ``registrant,''.

    (b) Information Systems.--Section 31106(a)(3) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(H) determine whether a person or employer is or 
                was related, through common ownership, common 
                management, common control, or common familial 
                relationship, to any other person, employer, or any 
                other applicant for registration under section 13902 or 
                31134.''.
SEC. 32104. <<NOTE: 49 USC 13903 note.>> FINANCIAL RESPONSIBILITY 
                            REQUIREMENTS.

    Not <<NOTE: Deadline. Reports.>> later than 6 months after the date 
of enactment of this Act, and every 4 years thereafter, the Secretary 
shall--
            (1) issue a report on the appropriateness of--
                    (A) the current minimum financial responsibility 
                requirements under sections 31138 and 31139 of title 49, 
                United States Code; and
                    (B) the current bond and insurance requirements 
                under sections 13904(f), 13903, and 13906 of title 49, 
                United States Code; and
            (2) submit the report issued under paragraph (1) to the 
        Committee on Commerce, Science, and Transportation of the Senate 
        and the Committee on Transportation and Infrastructure of the 
        House of Representatives.
SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT.

    (a) In General.--Chapter 311 is amended by inserting after section 
31133 the following:
``Sec. 31134. Requirement for registration and USDOT number

    ``(a) In General.--Upon application, and subject to subsections (b) 
and (c), the Secretary shall register an employer or person subject to 
the safety jurisdiction of this subchapter. An employer or person may 
operate a commercial motor vehicle in interstate commerce only if the 
employer or person is registered by the Secretary under this section and 
receives a USDOT number. Nothing in this section shall preclude 
registration by the Secretary of an employer or person not engaged in 
interstate commerce. An employer or person subject to jurisdiction under 
subchapter I of chapter 135 of this title shall apply for commercial 
registration under section 13902 of this title.
    ``(b) Withholding Registration.--The Secretary shall register an 
employer or person under subsection (a) only if the Secretary determines 
that--
            ``(1) the employer or person seeking registration is willing 
        and able to comply with the requirements of this subchapter and 
        the regulations prescribed thereunder and chapter 51 and the 
        regulations prescribed thereunder;
            ``(2)(A) <<NOTE: Time period.>> during the 3-year period 
        before the date of the filing of the application, the employer 
        or person is not or was not related through common ownership, 
        common management, common control, or common familial 
        relationship to any other person or applicant for registration 
        subject to this subchapter who, during such 3-year period, is or 
        was unfit,

[[Page 126 STAT. 781]]

        unwilling, or unable to comply with the requirements listed in 
        subsection (b)(1); or
            ``(3) the employer or person has disclosed to the Secretary 
        any relationship involving common ownership, common management, 
        common control, or common familial relationship to any other 
        person or applicant for registration subject to this subchapter.

    ``(c) Revocation or Suspension of Registration.-- 
<<NOTE: Notification.>> The Secretary shall revoke the registration of 
an employer or person issued under subsection (a) after notice and an 
opportunity for a proceeding, or suspend the registration after giving 
notice of the suspension to the employer or person, if the Secretary 
determines that--
            ``(1) the employer's or person's authority to operate 
        pursuant to chapter 139 of this title is subject to revocation 
        or suspension under sections 13905(d)(1) or 13905(f) of this 
        title;
            ``(2) the employer or person has knowingly failed to comply 
        with the requirements listed in subsection (b)(1);
            ``(3) the employer or person has not disclosed any 
        relationship through common ownership, common management, common 
        control, or common familial relationship to any other person or 
        applicant for registration subject to this subchapter that the 
        Secretary determines is or was unfit, unwilling, or unable to 
        comply with the requirements listed in subsection (b)(1);
            ``(4) the employer or person refused to submit to the safety 
        review required by section 31144(g) of this title.

    ``(d) <<NOTE: Deadline.>> Periodic Registration Update.--The 
Secretary may require an employer to update a registration under this 
section not later than 30 days after a change in the employer's address, 
other contact information, officers, process agent, or other essential 
information, as determined by the Secretary.

    ``(e) State Authority.--Nothing in this section shall be construed 
as affecting the authority of a State to issue a Department of 
Transportation number under State law to a person operating in 
intrastate commerce.''.
    (b) Conforming Amendment.--The analysis of chapter 311 is amended by 
inserting after the item relating to section 31133 the following:

``31134. Requirement for registration and USDOT number.''.

SEC. 32106. REGISTRATION FEE SYSTEM.

    Section 13908(d)(1) is amended by striking ``but shall not exceed 
$300''.
SEC. 32107. REGISTRATION UPDATE.

    (a) Motor Carrier Update.--Section 13902 is amended by adding at the 
end the following:
    ``(h) <<NOTE: Deadlines.>> Update of Registration.--
            ``(1) In general.--The Secretary shall require a registrant 
        to update its registration under this section not later than 30 
        days after a change in the registrant's address, other contact 
        information, officers, process agent, or other essential 
        information, as determined by the Secretary.
            ``(2) Motor carriers of passengers.--In addition to the 
        requirements of paragraph (1), the Secretary shall require a

[[Page 126 STAT. 782]]

        motor carrier of passengers to update its registration 
        information, including numbers of vehicles, annual mileage, and 
        individuals responsible for compliance with Federal safety 
        regulations quarterly for the first 2 years after being issued a 
        registration under this section.''.

    (b) Freight Forwarder Update.--Section 13903 is amended by adding at 
the end the following:
    ``(c) <<NOTE: Deadline.>> Update of Registration.--The Secretary 
shall require a freight forwarder to update its registration under this 
section not later than 30 days after a change in the freight forwarder's 
address, other contact information, officers, process agent, or other 
essential information, as determined by the Secretary.''.

    (c) Broker Update.--Section 13904 is amended by adding at the end 
the following:
    ``(e) <<NOTE: Deadline.>> Update of Registration.--The Secretary 
shall require a broker to update its registration under this section not 
later than 30 days after a change in the broker's address, other contact 
information, officers, process agent, or other essential information, as 
determined by the Secretary.''.
SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT 
                            REGISTRATION.

    (a) Penalties.--Section 14901(a) is amended--
            (1) by striking ``$500'' and inserting ``$1,000'';
            (2) by striking ``who is not registered under this part to 
        provide transportation of passengers,'';
            (3) by striking ``with respect to providing transportation 
        of passengers,'' and inserting ``or section 13902(c) of this 
        title,''; and
            (4) by striking ``$2,000 for each violation and each 
        additional day the violation continues'' and inserting ``$10,000 
        for each violation, or $25,000 for each violation relating to 
        providing transportation of passengers''.

    (b) Transportation of Hazardous Wastes.--Section 14901(b) is amended 
by striking ``not to exceed $20,000'' and inserting ``not less than 
$20,000, but not to exceed $40,000''.
SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD.

    Section 13905(f)(2) is amended to read as follows:
            ``(2) Imminent hazard to public health.--Notwithstanding 
        subchapter II of chapter 5 of title 5, the Secretary shall 
        revoke the registration of a motor carrier if the Secretary 
        finds that the carrier is or was conducting unsafe operations 
        that are or were an imminent hazard to public health or 
        property.''.
SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES FOR 
                            FAILURE TO RESPOND TO SUBPOENA.

    Section 525 is amended--
            (1) by striking ``subpenas'' in the section heading and 
        inserting ``subpoenas'';
            (2) by striking ``subpena'' and inserting ``subpoena'';
            (3) by striking ``$100'' and inserting ``$1,000'';
            (4) by striking ``$5,000'' and inserting ``$10,000''; and
            (5) by adding at the end the following:

    ``The Secretary may withhold, suspend, amend, or revoke any part of 
the registration of a person required to register under chapter 139 for 
failing to obey a subpoena or requirement of the

[[Page 126 STAT. 783]]

Secretary under this chapter to appear and testify or produce 
records.''.
SEC. 32111. FLEETWIDE OUT OF SERVICE ORDER FOR OPERATING WITHOUT 
                            REQUIRED REGISTRATION.

    Section 13902(e)(1) is amended--
            (1) by striking ``motor vehicle'' and inserting ``motor 
        carrier'' after ``the Secretary determines that a''; and
            (2) by striking ``order the vehicle'' and inserting ``order 
        the motor carrier operations'' after ``the Secretary may''.
SEC. 32112. MOTOR CARRIER AND OFFICER PATTERNS OF SAFETY 
                            VIOLATIONS.

    Section 31135 is amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Noncompliance.--
            ``(1) Motor carriers.--Two or more motor carriers, 
        employers, or persons shall not use common ownership, common 
        management, common control, or common familial relationship to 
        enable any or all such motor carriers, employers, or persons to 
        avoid compliance, or mask or otherwise conceal non-compliance, 
        or a history of non-compliance, with regulations prescribed 
        under this subchapter or an order of the Secretary issued under 
        this subchapter.
            ``(2) Pattern.--If the Secretary finds that a motor carrier, 
        employer, or person engaged in a pattern or practice of avoiding 
        compliance, or masking or otherwise concealing noncompliance, 
        with regulations prescribed under this subchapter, the 
        Secretary--
                    ``(A) may withhold, suspend, amend, or revoke any 
                part of the motor carrier's, employer's, or person's 
                registration in accordance with section 13905 or 31134; 
                and
                    ``(B) shall take into account such non-compliance 
                for purposes of determining civil penalty amounts under 
                section 521(b)(2)(D).
            ``(3) Officers.--If the Secretary finds, after notice and an 
        opportunity for proceeding, that an officer of a motor carrier, 
        employer, or owner or operator has engaged in a pattern or 
        practice of, or assisted a motor carrier, employer, or owner or 
        operator in avoiding compliance, or masking or otherwise 
        concealing noncompliance, while serving as an officer or such 
        motor carrier, employer, or owner or operator, the Secretary may 
        suspend, amend, or revoke any part of a registration granted to 
        the officer individually under section 13902 or 31134.''.

               Subtitle B--Commercial Motor Vehicle Safety

SEC. 32201. CRASHWORTHINESS STANDARDS.

    (a) <<NOTE: Deadline. Analysis.>> In General.--Not later than 18 
months after the date of enactment of this Act, the Secretary shall 
conduct a comprehensive analysis on the need for crashworthiness 
standards on property-carrying commercial motor vehicles with a gross 
vehicle weight rating or gross vehicle weight of at least 26,001 pounds 
involved in interstate commerce, including an evaluation of the need for

[[Page 126 STAT. 784]]

roof strength, pillar strength, air bags, and other occupant protections 
standards, and frontal and back wall standards.

    (b) Report.--Not later than 90 days after completing the 
comprehensive analysis under subsection (a), the Secretary shall report 
the results of the analysis and any recommendations to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives.
SEC. 32202. CANADIAN SAFETY RATING RECIPROCITY.

    Section 31144 is amended by adding at the end the following:
    ``(h) Recognition of Canadian Motor Carrier Safety Fitness 
Determinations.--
            ``(1) If an authorized agency of the Canadian federal 
        government or a Canadian Territorial or Provincial government 
        determines, by applying the procedure and standards prescribed 
        by the Secretary under subsection (b) or pursuant to an 
        agreement under paragraph (2), that a Canadian employer is unfit 
        and prohibits the employer from operating a commercial motor 
        vehicle in Canada or any Canadian Province, the Secretary may 
        prohibit the employer from operating such vehicle in interstate 
        and foreign commerce until the authorized Canadian agency 
        determines that the employer is fit.
            ``(2) The Secretary may consult and participate in 
        negotiations with authorized officials of the Canadian federal 
        government or a Canadian Territorial or Provincial government, 
        as necessary, to provide reciprocal recognition of each 
        country's motor carrier safety fitness determinations. An 
        agreement shall provide, to the maximum extent practicable, that 
        each country will follow the procedure and standards prescribed 
        by the Secretary under subsection (b) in making motor carrier 
        safety fitness determinations.''.
SEC. 32203. STATE REPORTING OF FOREIGN COMMERCIAL DRIVER 
                            CONVICTIONS.

    (a) Definition of Foreign Commercial Driver.--Section 31301 is 
amended--
            (1) by redesignating paragraphs (10) through (14) as 
        paragraphs (11) through (15), respectively; and
            (2) by inserting after paragraph (9) the following:
            ``(10) `foreign commercial driver' means an individual 
        licensed to operate a commercial motor vehicle by an authority 
        outside the United States, or a citizen of a foreign country who 
        operates a commercial motor vehicle in the United States.''.

    (b) State Reporting of Convictions.--Section 31311(a) is amended by 
adding after paragraph (21) the following:
            ``(22) The State shall report a conviction of a foreign 
        commercial driver by that State to the Federal Convictions and 
        Withdrawal Database, or another information system designated by 
        the Secretary to record the convictions. A report shall 
        include--
                    ``(A) for a driver holding a foreign commercial 
                driver's license--
                          ``(i) each conviction relating to the 
                      operation of a commercial motor vehicle; and
                          ``(ii) each conviction relating to the 
                      operation of a non-commercial motor vehicle; and

[[Page 126 STAT. 785]]

                    ``(B) for an unlicensed driver or a driver holding a 
                foreign non-commercial driver's license, each conviction 
                relating to the operation of a commercial motor 
                vehicle.''.
SEC. 32204. AUTHORITY TO DISQUALIFY FOREIGN COMMERCIAL DRIVERS.

    Section 31310 is amended by adding at the end the following:
    ``(k) Foreign Commercial Drivers.--A foreign commercial driver shall 
be subject to disqualification under this section.''.
SEC. 32205. REVOCATION OF FOREIGN MOTOR CARRIER OPERATING 
                            AUTHORITY FOR FAILURE TO PAY CIVIL 
                            PENALTIES.

    Section 13905(d)(2), as amended by section 32103(a) of this Act, is 
amended by inserting ``foreign motor carrier, foreign motor private 
carrier,'' after ``registration of a motor carrier,'' each place it 
appears.
SEC. 32206. RENTAL TRUCK ACCIDENT STUDY.

    (a) Definitions.--In this section:
            (1) Rental truck.--The term ``rental truck'' means a motor 
        vehicle with a gross vehicle weight rating of between 10,000 and 
        26,000 pounds that is made available for rental by a rental 
        truck company.
            (2) Rental truck company.--The term ``rental truck company'' 
        means a person or company that is in the business of renting or 
        leasing rental trucks to the public or for private use.

    (b) Study.--
            (1) <<NOTE: Time period.>> In general.--The Secretary shall 
        conduct a study of the safety of rental trucks during the 7-year 
        period ending on December 31, 2011.
            (2) Requirements.--The study conducted under paragraph (1) 
        shall--
                    (A) evaluate available data on the number of 
                crashes, fatalities, and injuries involving rental 
                trucks and the cause of such crashes, utilizing police 
                accident reports and other sources;
                    (B) estimate the property damage and costs resulting 
                from a subset of crashes involving rental truck 
                operations, which the Secretary believes adequately 
                reflect all crashes involving rental trucks;
                    (C) analyze State and local laws regulating rental 
                truck companies, including safety and inspection 
                requirements;
                    (D) assess the rental truck maintenance programs of 
                a selection of small, medium, and large rental truck 
                companies, as selected by the Secretary, including the 
                frequency of rental truck maintenance inspections, and 
                compare such programs with inspection requirements for 
                passenger vehicles and commercial motor vehicles;
                    (E) include any other information available 
                regarding the safety of rental trucks; and
                    (F) review any other information that the Secretary 
                determines to be appropriate.

    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit a report to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives that 
contains--

[[Page 126 STAT. 786]]

            (1) the findings of the study conducted pursuant to 
        subsection (b); and
            (2) any recommendations for legislation that the Secretary 
        determines to be appropriate.

                        Subtitle C--Driver Safety

SEC. 32301. HOURS OF SERVICE STUDY AND ELECTRONIC LOGGING DEVICES.

    (a) Hours of Service Study.--
            (1) Field study.--
                    (A) <<NOTE: Deadline.>> In general.--Not later than 
                March 31, 2013, the Secretary shall complete a field 
                study on the efficacy of the restart rule published on 
                December 27, 2011 (in this section referred to as the 
                ``2011 restart rule''), applicable to operators of 
                commercial motor vehicles of property subject to maximum 
                driving time requirements of the Secretary.
                    (B) Requirement.--The field study shall expand upon 
                the results of the laboratory-based study relating to 
                commercial motor vehicle driver fatigue sponsored by the 
                Federal Motor Carrier Safety Administration presented in 
                the report of December 2010 titled ``Investigation into 
                Motor Carrier Practices to Achieve Optimal Commercial 
                Motor Vehicle Driver Performance: Phase I''.
                    (C) Criteria.--In conducting the field study, the 
                Secretary shall ensure that--
                          (i) the methodology for the field study is 
                      consistent, to the maximum extent possible, with 
                      the laboratory-based study methodology;
                          (ii) the data collected is representative of 
                      the drivers and motor carriers regulated by the 
                      hours of service regulations, including those 
                      drivers and carriers affected by the maximum 
                      driving time requirements;
                          (iii) the analysis is statistically valid; and
                          (iv) the field study follows the plan for the 
                      ``Scheduling and Fatigue Recovery Project'' 
                      developed by the Federal Motor Carrier Safety 
                      Administration.
                    (D) Report to congress.--Not later than September 
                30, 2013, the Secretary shall submit to the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Commerce, Science, 
                and Transportation of the Senate a report detailing the 
                results of the field study.

    (b) General Authority.--Section 31137 is amended--
            (1) by amending the section heading to read as follows:
``Sec. 31137. Electronic logging devices and brake maintenance 
                    regulations'';
            (2) by redesignating subsection (b) as subsection (g); and
            (3) by amending (a) to read as follows:

    ``(a) Use of Electronic Logging Devices.-- <<NOTE: Deadline.>> Not 
later than 1 year after the date of enactment of the Commercial Motor 
Vehicle Safety Enhancement Act of 2012, the Secretary of Transportation 
shall prescribe regulations--

[[Page 126 STAT. 787]]

            ``(1) requiring a commercial motor vehicle involved in 
        interstate commerce and operated by a driver subject to the 
        hours of service and the record of duty status requirements 
        under part 395 of title 49, Code of Federal Regulations, be 
        equipped with an electronic logging device to improve compliance 
        by an operator of a vehicle with hours of service regulations 
        prescribed by the Secretary; and
            ``(2) ensuring that an electronic logging device is not used 
        to harass a vehicle operator.

    ``(b) Electronic Logging Device Requirements.--
            ``(1) In general.--The regulations prescribed under 
        subsection (a) shall--
                    ``(A) require an electronic logging device--
                          ``(i) to accurately record commercial driver 
                      hours of service;
                          ``(ii) to record the location of a commercial 
                      motor vehicle;
                          ``(iii) to be tamper resistant; and
                          ``(iv) to be synchronized to the operation of 
                      the vehicle engine or be capable of recognizing 
                      when the vehicle is being operated;
                    ``(B) allow law enforcement to access the data 
                contained in the device during a roadside inspection; 
                and
                    ``(C) <<NOTE: Applicability. Effective date.>> apply 
                to a commercial motor vehicle beginning on the date that 
                is 2 years after the date that the regulations are 
                published as a final rule.
            ``(2) Performance and design standards.--The regulations 
        prescribed under subsection (a) shall establish performance 
        standards--
                    ``(A) defining a standardized user interface to aid 
                vehicle operator compliance and law enforcement review;
                    ``(B) establishing a secure process for 
                standardized--
                          ``(i) and unique vehicle operator 
                      identification;
                          ``(ii) data access;
                          ``(iii) data transfer for vehicle operators 
                      between motor vehicles;
                          ``(iv) data storage for a motor carrier; and
                          ``(v) data transfer and transportability for 
                      law enforcement officials;
                    ``(C) establishing a standard security level for an 
                electronic logging device and related components to be 
                tamper resistant by using a methodology endorsed by a 
                nationally recognized standards organization; and
                    ``(D) identifying each driver subject to the hours 
                of service and record of duty status requirements under 
                part 395 of title 49, Code of Federal Regulations.

    ``(c) Certification Criteria.--
            ``(1) In general.--The regulations prescribed by the 
        Secretary under this section shall establish the criteria and a 
        process for the certification of electronic logging devices to 
        ensure that the device meets the performance requirements under 
        this section.
            ``(2) Effect of noncertification.--Electronic logging 
        devices that are not certified in accordance with the 
        certification process referred to in paragraph (1) shall not be 
        acceptable evidence of hours of service and record of duty 
        status requirements under part 395 of title 49, Code of Federal 
        Regulations.

[[Page 126 STAT. 788]]

    ``(d) Additional Considerations.--The Secretary, in prescribing the 
regulations described in subsection (a), shall consider how such 
regulations may--
            ``(1) reduce or eliminate requirements for drivers and motor 
        carriers to retain supporting documentation associated with 
        paper-based records of duty status if--
                    ``(A) data contained in an electronic logging device 
                supplants such documentation; and
                    ``(B) using such data without paper-based records 
                does not diminish the Secretary's ability to audit and 
                review compliance with the Secretary's hours of service 
                regulations; and
            ``(2) include such measures as the Secretary determines are 
        necessary to protect the privacy of each individual whose 
        personal data is contained in an electronic logging device.

    ``(e) Use of Data.--
            ``(1) In general.--The Secretary may utilize information 
        contained in an electronic logging device only to enforce the 
        Secretary's motor carrier safety and related regulations, 
        including record-of-duty status regulations.
            ``(2) Measures to preserve confidentiality of personal 
        data.--The Secretary shall institute appropriate measures to 
        preserve the confidentiality of any personal data contained in 
        an electronic logging device and disclosed in the course of an 
        action taken by the Secretary or by law enforcement officials to 
        enforce the regulations referred to in paragraph (1).
            ``(3) Enforcement.--The Secretary shall institute 
        appropriate measures to ensure any information collected by 
        electronic logging devices is used by enforcement personnel only 
        for the purpose of determining compliance with hours of service 
        requirements.

    ``(f) Definitions.--In this section:
            ``(1) Electronic logging device.--The term `electronic 
        logging device' means an electronic device that--
                    ``(A) is capable of recording a driver's hours of 
                service and duty status accurately and automatically; 
                and
                    ``(B) meets the requirements established by the 
                Secretary through regulation.
            ``(2) Tamper resistant.--The term `tamper resistant' means 
        resistant to allowing any individual to cause an electronic 
        device to record the incorrect date, time, and location for 
        changes to on-duty driving status of a commercial motor vehicle 
        operator under part 395 of title 49, Code of Federal 
        Regulations, or to subsequently alter the record created by that 
        device.''.

    (c) Civil Penalties.--Section 30165(a)(1) is amended by striking 
``or 30141 through 30147'' and inserting ``30141 through 30147, or 
31137''.
    (d) Conforming Amendment.--The analysis for chapter 311 is amended 
by striking the item relating to section 31137 and inserting the 
following:

``31137. Electronic logging devices and brake maintenance 
           regulations.''.

SEC. 32302. DRIVER MEDICAL QUALIFICATIONS.

    (a) <<NOTE: 49 USC 31149 note.>> Deadline for Establishment of 
National Registry of Medical Examiners.--Not later than 1 year after the 
date of

[[Page 126 STAT. 789]]

enactment of this Act, the Secretary shall establish a national registry 
of medical examiners in accordance with section 31149(d)(1) of title 49, 
United States Code.

    (b) Examination Requirement for National Registry of Medical 
Examiners.--Section 31149(c)(1)(D) is amended to read as follows:
                    ``(D) <<NOTE: Deadline.>> not later than 1 year 
                after enactment of the Commercial Motor Vehicle Safety 
                Enhancement Act of 2012, develop requirements for a 
                medical examiner to be listed in the national registry 
                under this section, including--
                          ``(i) the completion of specific courses and 
                      materials;
                          ``(ii) <<NOTE: Certification.>> certification, 
                      including, at a minimum, self-certification, if 
                      the Secretary determines that self-certification 
                      is necessary for sufficient participation in the 
                      national registry, to verify that a medical 
                      examiner completed specific training, including 
                      refresher courses, that the Secretary determines 
                      necessary to be listed in the national registry;
                          ``(iii) an examination that requires a passing 
                      grade; and
                          ``(iv) demonstration of a medical examiner's 
                      willingness to meet the reporting requirements 
                      established by the Secretary;''.

    (c) Additional Oversight of Licensing Authorities.--
            (1) In general.--Section 31149(c)(1) is amended--
                    (A) by amending subparagraph (E) to read as follows:
                    ``(E) require medical examiners to transmit 
                electronically, on a monthly basis, the name of the 
                applicant, a numerical identifier, and additional 
                information contained on the medical examiner's 
                certificate for any completed medical examination report 
                required under section 391.43 of title 49, Code of 
                Federal Regulations, to the chief medical examiner;'';
                    (B) in subparagraph (F), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(G) <<NOTE: Deadline. Review.>> annually review 
                the implementation of commercial driver's license 
                requirements by not fewer than 10 States to assess the 
                accuracy, validity, and timeliness of--
                          ``(i) the submission of physical examination 
                      reports and medical certificates to State 
                      licensing agencies; and
                          ``(ii) the processing of the submissions by 
                      State licensing agencies.''.
            (2) Internal oversight policy.--
                    (A) <<NOTE: Deadline. 49 USC 31149 note.>> In 
                general.--Not later than 2 years after the date of 
                enactment of this Act, the Secretary shall establish an 
                oversight policy and procedure to carry out section 
                31149(c)(1)(G) of title 49, United States Code, as added 
                by section 32302(c)(1) of this Act.
                    (B) <<NOTE: 49 USC 31149 note.>> Effective date.--
                The amendments made by section 32303(c)(1) of this Act 
                shall take effect on the date the oversight policies and 
                procedures are established pursuant to subparagraph (A).

[[Page 126 STAT. 790]]

    (d) Electronic Filing of Medical Examination Certificates.--Section 
31311(a), as amended by sections 32203(b) and 32305(b) of this Act, is 
amended by adding at the end the following:
            ``(25) <<NOTE: Deadline. Records.>> Not later than 5 years 
        after the date of enactment of the Commercial Motor Vehicle 
        Safety Enhancement Act of 2012, the State shall establish and 
        maintain, as part of its driver information system, the 
        capability to receive an electronic copy of a medical examiner's 
        certificate, from a certified medical examiner, for each holder 
        of a commercial driver's license issued by the State who 
        operates or intends to operate in interstate commerce.''.

    (e) Funding.--The Secretary is authorized to utilize funds provided 
under section 4101(c)(1) of SAFETEA-LU (119 Stat. 1715) to support 
development of costs of the information technology needed to carry out 
section 31311(a)(25) of title 49, United States Code.
SEC. 32303. COMMERCIAL DRIVER'S LICENSE NOTIFICATION SYSTEM.

    (a) In General.--Section 31304 is amended--
            (1) by striking ``An employer'' and inserting the following:

    ``(a) In General.--An employer''; and
            (2) by adding at the end the following:

    ``(b) Driver Violation Records.--
            ``(1) Periodic review.--Except as provided in paragraph (3), 
        an employer shall ascertain the driving record of each driver it 
        employs--
                    ``(A) by making an inquiry at least once every 12 
                months to the appropriate State agency in which the 
                driver held or holds a commercial driver's license or 
                permit during such time period;
                    ``(B) by receiving occurrence-based reports of 
                changes in the status of a driver's record from 1 or 
                more driver record notification systems that meet 
                minimum standards issued by the Secretary; or
                    ``(C) by a combination of inquiries to States and 
                reports from driver record notification systems.
            ``(2) Record keeping.--A copy of the reports received under 
        paragraph (1) shall be maintained in the driver's qualification 
        file.
            ``(3) <<NOTE: Time period.>> Exceptions to record review 
        requirement.--Paragraph (1) shall not apply to a driver employed 
        by an employer who, in any 7-day period, is employed or used as 
        a driver by more than 1 employer--
                    ``(A) if the employer obtains the driver's 
                identification number, type, and issuing State of the 
                driver's commercial motor vehicle license; or
                    ``(B) if the information described in subparagraph 
                (A) is furnished by another employer and the employer 
                that regularly employs the driver meets the other 
                requirements under this section.
            ``(4) Driver record notification system defined.--In this 
        section, the term `driver record notification system' means a 
        system that automatically furnishes an employer with a report, 
        generated by the appropriate agency of a State, on the change in 
        the status of an employee's driver's license due to a conviction 
        for a moving violation, a failure to appear,

[[Page 126 STAT. 791]]

        an accident, driver's license suspension, driver's license 
        revocation, or any other action taken against the driving 
        privilege.''.

    (b) <<NOTE: Deadline. 49 USC 31304 note.>> Standards for Driver 
Record Notification Systems.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall issue minimum standards for 
driver notification systems, including standards for the accuracy, 
consistency, and completeness of the information provided.

    (c) <<NOTE: Deadlines.>> Plan for National Notification System.--
            (1) <<NOTE: Recommenda- tions.>> Development.--Not later 
        than 2 years after the date of enactment of this Act, the 
        Secretary shall develop recommendations and a plan for the 
        development and implementation of a national driver record 
        notification system, including--
                    (A) an assessment of the merits of achieving a 
                national system by expanding the Commercial Driver's 
                License Information System; and
                    (B) an estimate of the fees that an employer will be 
                charged to offset the operating costs of the national 
                system.
            (2) <<NOTE: Reports.>> Submission to congress.--Not later 
        than 90 days after the recommendations and plan are developed 
        under paragraph (1), the Secretary shall submit a report on the 
        recommendations and plan to the Committee on Commerce, Science, 
        and Transportation of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives.
SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING.

    (a) In General.--Section 31305 is amended by adding at the end the 
following:
    ``(c) <<NOTE: Deadline. Regulations.>> Standards for Training.--Not 
later than 1 year after the date of enactment of the Commercial Motor 
Vehicle Safety Enhancement Act of 2012, the Secretary shall issue final 
regulations establishing minimum entry-level training requirements for 
an individual operating a commercial motor vehicle--
            ``(1) addressing the knowledge and skills that--
                    ``(A) are necessary for an individual operating a 
                commercial motor vehicle to safely operate a commercial 
                motor vehicle; and
                    ``(B) must be acquired before obtaining a commercial 
                driver's license for the first time or upgrading from 
                one class of commercial driver's license to another 
                class;
            ``(2) addressing the specific training needs of a commercial 
        motor vehicle operator seeking passenger or hazardous materials 
        endorsements;
            ``(3) requiring effective instruction to acquire the 
        knowledge, skills, and training referred to in paragraphs (1) 
        and (2), including classroom and behind-the-wheel instruction;
            ``(4) requiring certification that an individual operating a 
        commercial motor vehicle meets the requirements established by 
        the Secretary; and
            ``(5) requiring a training provider (including a public or 
        private driving school, motor carrier, or owner or operator of a 
        commercial motor vehicle) that offers training that results in 
        the issuance of a certification to an individual under paragraph 
        (4) to demonstrate that the training meets the requirements of 
        the regulations, through a process established by the 
        Secretary.''.

    (b) Commercial Driver's License Uniform Standards.--Section 31308(1) 
is amended to read as follows:

[[Page 126 STAT. 792]]

            ``(1) an individual issued a commercial driver's license--
                    ``(A) pass written and driving tests for the 
                operation of a commercial motor vehicle that comply with 
                the minimum standards prescribed by the Secretary under 
                section 31305(a); and
                    ``(B) present certification of completion of driver 
                training that meets the requirements established by the 
                Secretary under section 31305(c);''.

    (c) Conforming Amendment.--The section heading for section 31305 is 
amended to read as follows:
``Sec. 31305. General driver fitness, testing, and training''.

    (d) Conforming Amendment.--The analysis for chapter 313 is amended 
by striking the item relating to section 31305 and inserting the 
following:

``31305. General driver fitness, testing, and training.''.

SEC. 32305. COMMERCIAL DRIVER'S LICENSE PROGRAM.

    (a) In General.--Section 31309 is amended--
            (1) in subsection (e)(4), by amending subparagraph (A) to 
        read as follows:
                    ``(A) <<NOTE: Plan.>> In general.--The plan shall 
                specify--
                          ``(i) a date by which all States shall be 
                      operating commercial driver's license information 
                      systems that are compatible with the modernized 
                      information system under this section; and
                          ``(ii) that States must use the systems to 
                      receive and submit conviction and disqualification 
                      data.''; and
            (2) in subsection (f), by striking ``use'' and inserting 
        ``use, subject to section 31313(a),''.

    (b) Requirements for State Participation.--Section 31311 is 
amended--
            (1) in subsection (a), as amended by section 32203(b) of 
        this Act--
                    (A) <<NOTE: Time period. Regulations.>> in paragraph 
                (5), by striking ``At least'' and all that follows 
                through ``regulation),'' and inserting: ``Not later than 
                the time period prescribed by the Secretary by 
                regulation,''; and
                    (B) by adding at the end the following:
            ``(23) <<NOTE: Deadline. Records.>> Not later than 1 year 
        after the date of enactment of the Commercial Motor Vehicle 
        Safety Enhancement Act of 2012, the State shall implement a 
        system and practices for the exclusive electronic exchange of 
        driver history record information on the system the Secretary 
        maintains under section 31309, including the posting of 
        convictions, withdrawals, and disqualifications.
            ``(24) <<NOTE: Records.>> Before renewing or issuing a 
        commercial driver's license to an individual, the State shall 
        request information pertaining to the individual from the drug 
        and alcohol clearinghouse maintained under section 31306a.''; 
        and
            (2) by adding at the end the following:

    ``(d) State Commercial Driver's License Program Plan.--
            ``(1) <<NOTE: Time period.>> In general.--A State shall 
        submit a plan to the Secretary for complying with the 
        requirements under this section during the period beginning on 
        the date the plan is submitted and ending on September 30, 2016.

[[Page 126 STAT. 793]]

            ``(2) Contents.--A plan submitted by a State under paragraph 
        (1) shall identify--
                    ``(A) the actions that the State will take to 
                address any deficiencies in the State's commercial 
                driver's license program, as identified by the Secretary 
                in the most recent audit of the program; and
                    ``(B) other actions that the State will take to 
                comply with the requirements under subsection (a).
            ``(3) Priority.--
                    ``(A) Implementation schedule.--A plan submitted by 
                a State under paragraph (1) shall include a schedule for 
                the implementation of the actions identified under 
                paragraph (2). In establishing the schedule, the State 
                shall prioritize actions to address any deficiencies 
                highlighted by the Secretary as critical in the most 
                recent audit of the program.
                    ``(B) Deadline for compliance with requirements.--A 
                plan submitted by a State under paragraph (1) shall 
                include assurances that the State will take the 
                necessary actions to comply with the requirements of 
                subsection (a) not later than September 30, 2015.
            ``(4) Approval and disapproval.--The Secretary shall--
                    ``(A) <<NOTE: Review.>> review each plan submitted 
                under paragraph (1);
                    ``(B)(i) <<NOTE: Determinations.>> approve a plan if 
                the Secretary determines that the plan meets the 
                requirements under this subsection and promotes the 
                goals of this chapter; and
                    ``(ii) disapprove a plan that the Secretary 
                determines does not meet the requirements or does not 
                promote the goals.
            ``(5) Modification of disapproved plans.--If the Secretary 
        disapproves a plan under paragraph (4), the Secretary shall--
                    ``(A) <<NOTE: Notification.>> provide a written 
                explanation of the disapproval to the State; and
                    ``(B) allow the State to modify the plan and 
                resubmit it for approval.
            ``(6) Plan updates.--The Secretary may require a State to 
        review and update a plan, as appropriate.

    ``(e) Annual Comparison of State Levels of Compliance.--The 
Secretary shall annually--
            ``(1) compare the relative levels of compliance by States 
        with the requirements under subsection (a); and
            ``(2) <<NOTE: Public information.>> make the results of the 
        comparison available to the public.''.
SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION SYSTEMS.

    Section 31106(c) is amended--
            (1) by striking the heading and inserting ``(1) In 
        General.'';
            (2) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D); and
            (3) by adding at the end the following:
            ``(2) Access to records.--The Secretary may require a State, 
        as a condition of an award of grant money under this section, to 
        provide the Secretary access to all State licensing status and 
        driver history records via an electronic information system, 
        subject to section 2721 of title 18.''.

[[Page 126 STAT. 794]]

SEC. 32307. EMPLOYER RESPONSIBILITIES.

    Section 31304, as amended by section 32303 of this Act, is amended 
in subsection (a)--
            (1) by striking ``knowingly''; and
            (2) by striking ``in which'' and inserting ``that the 
        employer knows or should reasonably know that''.
SEC. 32308. <<NOTE: 49 USC 31301 note.>> PROGRAM TO ASSIST 
                            VETERANS TO ACQUIRE COMMERCIAL 
                            DRIVER'S LICENSES.

    (a) Study.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 90 days 
        after the date of enactment of this Act, the Secretary, in 
        coordination with the Secretary of Defense, and in consultation 
        with the States and other relevant stakeholders, shall commence 
        a study to assess Federal and State regulatory, economic, and 
        administrative challenges faced by members and former members of 
        the Armed Forces, who received safety training and operated 
        qualifying motor vehicles during their service, in obtaining 
        commercial driver's licenses (as defined in section 31301(3) of 
        title 49, United States Code).
            (2) Requirements.--The study under this subsection shall--
                    (A) identify written and behind-the-wheel safety 
                training, qualification standards, knowledge and skills 
                tests, or other operating experience members of the 
                Armed Forces must meet that satisfy the minimum 
                standards prescribed by the Secretary of Transportation 
                for the operation of commercial motor vehicles under 
                section 31305 of title 49, United States Code;
                    (B) compare the alcohol and controlled substances 
                testing requirements for members of the Armed Forces 
                with those required for holders of a commercial driver's 
                license;
                    (C) evaluate the cause of delays in reviewing 
                applications for commercial driver's licenses of members 
                and former members of the Armed Forces;
                    (D) identify duplicative application costs;
                    (E) identify residency, domicile, training and 
                testing requirements, and other safety or health 
                assessments that affect or delay the issuance of 
                commercial driver's licenses to members and former 
                members of the Armed Forces; and
                    (F) include other factors that the Secretary 
                determines to be appropriate to meet the requirements of 
                the study.

    (b) Report.--
            (1) In general.--Not later than 180 days after the 
        commencement of the study under subsection (a), the Secretary 
        shall submit a report to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Financial 
        Services of the House of Representatives that contains the 
        findings and recommendations from the study.
            (2) Elements.--The report under paragraph (1) shall 
        include--
                    (A) findings related to the study requirements under 
                subsection (a)(2);

[[Page 126 STAT. 795]]

                    (B) <<NOTE: Recommenda- tions.>> recommendations for 
                the Federal and State legislative, regulatory, and 
                administrative actions necessary to address challenges 
                identified in subparagraph (A); and
                    (C) <<NOTE: Plan.>> a plan to implement the 
                recommendations for which the Secretary has authority.

    (c) <<NOTE: Deadline. Procedures.>> Implementation.--Not later than 
1 year after the date of enactment of this Act, the Secretary, in 
consultation with the Secretary of Defense and in cooperation with the 
States, shall implement the recommendations identified in subsection (b) 
and establish accelerated licensing procedures to assist veterans to 
acquire commercial driver's licenses.

    (d) Accelerated Licensing Procedures.-- <<NOTE: Applicability.>> The 
procedures established under subsection (a) shall be designed to be 
applicable to any veteran who--
            (1) is attempting to acquire a commercial driver's license; 
        and
            (2) obtained, during military service, documented driving 
        experience that, in the determination of the Secretary, makes 
        the use of accelerated licensing procedures appropriate.

    (e) Definitions.--In this section:
            (1) Commercial driver's license.--The term ``commercial 
        driver's license'' has the meaning given that term in section 
        31301 of title 49, United States Code.
            (2) State.--The term ``State'' has the meaning given that 
        term in section 31301 of title 49, United States Code.
            (3) Veteran.--The term ``veteran'' has the meaning given 
        that term in section 101 of title 38, United States Code.

Subtitle D-- <<NOTE: Safe Roads Act of 2012.>> Safe Roads Act of 2012
SEC. 32401. <<NOTE: 49 USC 30101 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Safe Roads Act of 2012''.
SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE AND 
                            ALCOHOL TEST RESULTS OF COMMERCIAL 
                            MOTOR VEHICLE OPERATORS.

    (a) In General.--Chapter 313 is amended--
            (1) in section 31306(a), by inserting ``and section 31306a'' 
        after ``this section''; and
            (2) by inserting after section 31306 the following:
``Sec. 31306a. <<NOTE: Records.>> National clearinghouse for 
                      controlled substance and alcohol test 
                      results of commercial motor vehicle 
                      operators

    ``(a) Establishment.--
            ``(1) <<NOTE: Deadline.>> In general.--Not later than 2 
        years after the date of enactment of the Safe Roads Act of 2012, 
        the Secretary of Transportation shall establish, operate, and 
        maintain a national clearinghouse for records relating to 
        alcohol and controlled substances testing of commercial motor 
        vehicle operators.
            ``(2) Purposes.--The purposes of the clearinghouse shall 
        be--
                    ``(A) to improve compliance with the Department of 
                Transportation's alcohol and controlled substances 
                testing program applicable to commercial motor vehicle 
                operators; and

[[Page 126 STAT. 796]]

                    ``(B) to enhance the safety of our United States 
                roadways by reducing accident and injuries involving the 
                misuse of alcohol or use of controlled substances by 
                operators of commercial motor vehicles.
            ``(3) Contents.--The clearinghouse shall function as a 
        repository for records relating to the positive test results and 
        test refusals of commercial motor vehicle operators and 
        violations by such operators of prohibitions set forth in 
        subpart B of part 382 of title 49, Code of Federal Regulations 
        (or any subsequent corresponding regulations).
            ``(4) Electronic exchange of records.--The Secretary shall 
        ensure that records can be electronically submitted to, and 
        requested from, the clearinghouse by authorized users.
            ``(5) Authorized operator.--The Secretary may authorize a 
        qualified private entity to operate and maintain the 
        clearinghouse and to collect fees on behalf of the Secretary 
        under subsection (e). The entity shall operate and maintain the 
        clearinghouse and permit access to driver information and 
        records from the clearinghouse in accordance with this section.

    ``(b) Design of Clearinghouse.--
            ``(1) Use of federal motor carrier safety administration 
        recommendations.--In establishing the clearinghouse, the 
        Secretary shall consider--
                    ``(A) the findings and recommendations contained in 
                the Federal Motor Carrier Safety Administration's March 
                2004 report to Congress required under section 226 of 
                the Motor Carrier Safety Improvement Act of 1999 (49 
                U.S.C. 31306 note); and
                    ``(B) the findings and recommendations contained in 
                the Government Accountability Office's May 2008 report 
                to Congress entitled `Motor Carrier Safety: Improvements 
                to Drug Testing Programs Could Better Identify Illegal 
                Drug Users and Keep Them off the Road.'.
            ``(2) Development of secure processes.--In establishing the 
        clearinghouse, the Secretary shall develop a secure process 
        for--
                    ``(A) administering and managing the clearinghouse 
                in compliance with applicable Federal security 
                standards;
                    ``(B) registering and authenticating authorized 
                users of the clearinghouse;
                    ``(C) registering and authenticating persons 
                required to report to the clearinghouse under subsection 
                (g);
                    ``(D) preventing the unauthorized access of 
                information from the clearinghouse;
                    ``(E) storing and transmitting data;
                    ``(F) persons required to report to the 
                clearinghouse under subsection (g) to timely and 
                accurately submit electronic data to the clearinghouse;
                    ``(G) generating timely and accurate reports from 
                the clearinghouse in response to requests for 
                information by authorized users; and
                    ``(H) updating an individual's record upon 
                completion of the return-to-duty process described in 
                title 49, Code of Federal Regulations.
            ``(3) Employer alert of positive test result.-- 
        <<NOTE: Notification.>> In establishing the clearinghouse, the 
        Secretary shall develop a secure

[[Page 126 STAT. 797]]

        method for electronically notifying an employer of each 
        additional positive test result or other noncompliance--
                    ``(A) <<NOTE: Time period.>> for an employee, that 
                is entered into the clearinghouse during the 7-day 
                period immediately following an employer's inquiry about 
                the employee; and
                    ``(B) for an employee who is listed as having 
                multiple employers.
            ``(4) Archive capability.--In establishing the 
        clearinghouse, the Secretary shall develop a process for 
        archiving all clearinghouse records for the purposes of auditing 
        and evaluating the timeliness, accuracy, and completeness of 
        data in the clearinghouse.
            ``(5) Future needs.--
                    ``(A) Interoperability with other data systems.--In 
                establishing the clearinghouse, the Secretary shall 
                consider--
                          ``(i) the existing data systems containing 
                      regulatory and safety data for commercial motor 
                      vehicle operators;
                          ``(ii) the efficacy of using or combining 
                      clearinghouse data with 1 or more of such systems; 
                      and
                          ``(iii) the potential interoperability of the 
                      clearinghouse with such systems.
                    ``(B) <<NOTE: Determination.>> Specific 
                considerations.--In carrying out subparagraph (A), the 
                Secretary shall determine--
                          ``(i) the clearinghouse's capability for 
                      interoperability with--
                                    ``(I) the National Driver Register 
                                established under section 30302;
                                    ``(II) the Commercial Driver's 
                                License Information System established 
                                under section 31309;
                                    ``(III) the Motor Carrier Management 
                                Information System for preemployment 
                                screening services under section 31150; 
                                and
                                    ``(IV) other data systems, as 
                                appropriate; and
                          ``(ii) any change to the administration of the 
                      current testing program, such as forms, that is 
                      necessary to collect data for the clearinghouse.

    ``(c) Standard Formats.--The Secretary shall develop standard 
formats to be used--
            ``(1) by an authorized user of the clearinghouse to--
                    ``(A) request a record from the clearinghouse; and
                    ``(B) obtain the consent of an individual who is the 
                subject of a request from the clearinghouse, if 
                applicable; and
            ``(2) <<NOTE: Notification.>> to notify an individual that a 
        positive alcohol or controlled substances test result, refusing 
        to test, and a violation of any of the prohibitions under 
        subpart B of part 382 of title 49, Code of Federal Regulations 
        (or any subsequent corresponding regulations), will be reported 
        to the clearinghouse.

    ``(d) Privacy.--A release of information from the clearinghouse 
shall--
            ``(1) comply with applicable Federal privacy laws, including 
        the fair information practices under the Privacy Act of 1974 (5 
        U.S.C. 552a);
            ``(2) comply with applicable sections of the Fair Credit 
        Reporting Act (15 U.S.C. 1681 et seq.); and

[[Page 126 STAT. 798]]

            ``(3) not be made to any person or entity unless expressly 
        authorized or required by law.

    ``(e) Fees.--
            ``(1) Authority to collect fees.--Except as provided under 
        paragraph (3), the Secretary may collect a reasonable, 
        customary, and nominal fee from an authorized user of the 
        clearinghouse for a request for information from the 
        clearinghouse.
            ``(2) Use of fees.--Fees collected under this subsection 
        shall be used for the operation and maintenance of the 
        clearinghouse.
            ``(3) Limitation.--The Secretary may not collect a fee from 
        an individual requesting information from the clearinghouse that 
        pertains to the record of that individual.

    ``(f) Employer Requirements.--
            ``(1) Determination concerning use of clearinghouse.--The 
        Secretary shall determine if an employer is authorized to use 
        the clearinghouse to meet the alcohol and controlled substances 
        testing requirements under title 49, Code of Federal 
        Regulations.
            ``(2) Applicability of existing requirements.-- 
        <<NOTE: Compliance.>> Each employer and service agent shall 
        continue to comply with the alcohol and controlled substances 
        testing requirements under title 49, Code of Federal 
        Regulations.
            ``(3) Employment prohibitions.--After the clearinghouse is 
        established under subsection (a), at a date determined to be 
        appropriate by the Secretary and published in the Federal 
        Register, an employer shall utilize the clearinghouse to 
        determine whether any employment prohibitions exist and shall 
        not hire an individual to operate a commercial motor vehicle 
        unless the employer determines that the individual, during the 
        preceding 3-year period--
                    ``(A) if tested for the use of alcohol and 
                controlled substances, as required under title 49, Code 
                of Federal Regulations--
                          ``(i) did not test positive for the use of 
                      alcohol or controlled substances in violation of 
                      the regulations; or
                          ``(ii) tested positive for the use of alcohol 
                      or controlled substances and completed the 
                      required return-to-duty process under title 49, 
                      Code of Federal Regulations;
                    ``(B)(i) did not refuse to take an alcohol or 
                controlled substance test under title 49, Code of 
                Federal Regulations; or
                    ``(ii) refused to take an alcohol or controlled 
                substance test and completed the required return-to-duty 
                process under title 49, Code of Federal Regulations; and
                    ``(C) did not violate any other provision of subpart 
                B of part 382 of title 49, Code of Federal Regulations 
                (or any subsequent corresponding regulations).
            ``(4) <<NOTE: Federal Register, publication.>> Annual 
        review.--After the clearinghouse is established under subsection 
        (a), at a date determined to be appropriate by the Secretary and 
        published in the Federal Register, an employer shall request and 
        review a commercial motor vehicle operator's record from the 
        clearinghouse annually for

[[Page 126 STAT. 799]]

        as long as the commercial motor vehicle operator is under the 
        employ of the employer.

    ``(g) Reporting of Records.--
            ``(1) <<NOTE: Effective date.>> In general.--Beginning 30 
        days after the date that the clearinghouse is established under 
        subsection (a), a medical review officer, employer, service 
        agent, and other appropriate person, as determined by the 
        Secretary, shall promptly submit to the Secretary any record 
        generated after the clearinghouse is initiated of an individual 
        who--
                    ``(A) refuses to take an alcohol or controlled 
                substances test required under title 49, Code of Federal 
                Regulations;
                    ``(B) tests positive for alcohol or a controlled 
                substance in violation of the regulations; or
                    ``(C) violates any other provision of subpart B of 
                part 382 of title 49, Code of Federal Regulations (or 
                any subsequent corresponding regulations).
            ``(2) Inclusion of records in clearinghouse.--The Secretary 
        shall include in the clearinghouse the records of positive test 
        results and test refusals received under paragraph (1).
            ``(3) Modifications and deletions.--If the Secretary 
        determines that a record contained in the clearinghouse is not 
        accurate, the Secretary shall modify or delete the record, as 
        appropriate.
            ``(4) Notification.--The Secretary shall expeditiously 
        notify an individual, unless such notification would be 
        duplicative, when--
                    ``(A) a record relating to the individual is 
                received by the clearinghouse;
                    ``(B) a record in the clearinghouse relating to the 
                individual is modified or deleted, and include in the 
                notification the reason for the modification or 
                deletion; or
                    ``(C) a record in the clearinghouse relating to the 
                individual is released to an employer and specify the 
                reason for the release.
            ``(5) Data quality and security standards for reporting and 
        releasing.--The Secretary may establish additional requirements, 
        as appropriate, to ensure that--
                    ``(A) the submission of records to the clearinghouse 
                is timely and accurate;
                    ``(B) the release of data from the clearinghouse is 
                timely, accurate, and released to the appropriate 
                authorized user under this section; and
                    ``(C) an individual with a record in the 
                clearinghouse has a cause of action for any 
                inappropriate use of information included in the 
                clearinghouse.
            ``(6) <<NOTE: Time period.>> Retention of records.--The 
        Secretary shall--
                    ``(A) retain a record submitted to the clearinghouse 
                for a 5-year period beginning on the date the record is 
                submitted;
                    ``(B) remove the record from the clearinghouse at 
                the end of the 5-year period, unless the individual 
                fails to meet a return-to-duty or follow-up requirement 
                under title 49, Code of Federal Regulations; and
                    ``(C) retain a record after the end of the 5-year 
                period in a separate location for archiving and auditing 
                purposes.

    ``(h) Authorized Users.--

[[Page 126 STAT. 800]]

            ``(1) Employers.-- <<NOTE: Procedures.>> The Secretary shall 
        establish a process for an employer, or an employer's designated 
        agent, to request and receive an individual's record from the 
        clearinghouse.
                    ``(A) Consent.--An employer may not access an 
                individual's record from the clearinghouse unless the 
                employer--
                          ``(i) obtains the prior written or electronic 
                      consent of the individual for access to the 
                      record; and
                          ``(ii) submits proof of the individual's 
                      consent to the Secretary.
                    ``(B) Access to records.--After receiving a request 
                from an employer for an individual's record under 
                subparagraph (A), the Secretary shall grant access to 
                the individual's record to the employer as expeditiously 
                as practicable.
                    ``(C) <<NOTE: Time period.>> Retention of record 
                requests.--The Secretary shall require an employer to 
                retain for a 3-year period--
                          ``(i) a record of each request made by the 
                      employer for records from the clearinghouse; and
                          ``(ii) the information received pursuant to 
                      the request.
                    ``(D) Use of records.--An employer may use an 
                individual's record received from the clearinghouse only 
                to assess and evaluate whether a prohibition applies 
                with respect to the individual to operate a commercial 
                motor vehicle for the employer.
                    ``(E) Protection of privacy of individuals.--An 
                employer that receives an individual's record from the 
                clearinghouse under subparagraph (B) shall--
                          ``(i) protect the privacy of the individual 
                      and the confidentiality of the record; and
                          ``(ii) ensure that information contained in 
                      the record is not divulged to a person or entity 
                      that is not directly involved in assessing and 
                      evaluating whether a prohibition applies with 
                      respect to the individual to operate a commercial 
                      motor vehicle for the employer.
            ``(2) <<NOTE: Procedures.>> State licensing authorities.--
        The Secretary shall establish a process for the chief commercial 
        driver's licensing official of a State to request and receive an 
        individual's record from the clearinghouse if the individual is 
        applying for a commercial driver's license from the State.
                    ``(A) Consent.--The Secretary may grant access to an 
                individual's record in the clearinghouse under this 
                paragraph without the prior written or electronic 
                consent of the individual. An individual who holds a 
                commercial driver's license shall be deemed to consent 
                to such access by obtaining a commercial driver's 
                license.
                    ``(B) Protection of privacy of individuals.--A chief 
                commercial driver's licensing official of a State that 
                receives an individual's record from the clearinghouse 
                under this paragraph shall--
                          ``(i) protect the privacy of the individual 
                      and the confidentiality of the record; and
                          ``(ii) ensure that the information in the 
                      record is not divulged to any person that is not 
                      directly involved in assessing and evaluating the 
                      qualifications of the individual to operate a 
                      commercial motor vehicle.

[[Page 126 STAT. 801]]

    ``(i) National Transportation Safety Board.-- 
<<NOTE: Procedures.>> The Secretary shall establish a process for the 
National Transportation Safety Board to request and receive an 
individual's record from the clearinghouse if the individual is involved 
in an accident that is under investigation by the National 
Transportation Safety Board.

    ``(j) Access to Clearinghouse by Individuals.--
            ``(1) <<NOTE: Procedures.>> In general.--The Secretary shall 
        establish a process for an individual to request and receive 
        information from the clearinghouse--
                    ``(A) to determine whether the clearinghouse 
                contains a record pertaining to the individual;
                    ``(B) to verify the accuracy of a record;
                    ``(C) to update an individual's record, including 
                completing the return-to-duty process described in title 
                49, Code of Federal Regulations; and
                    ``(D) to determine whether the clearinghouse 
                received requests for the individual's information.
            ``(2) <<NOTE: Appeal process.>> Dispute procedure.--The 
        Secretary shall establish a procedure, including an appeal 
        process, for an individual to dispute and remedy an 
        administrative error in the individual's record.

    ``(k) Penalties.--
            ``(1) In general.--An employer, employee, medical review 
        officer, or service agent who violates any provision of this 
        section shall be subject to civil penalties under section 
        521(b)(2)(C) and criminal penalties under section 521(b)(6)(B), 
        and any other applicable civil and criminal penalties, as 
        determined by the Secretary.
            ``(2) Violation of privacy.--The Secretary shall establish 
        civil and criminal penalties, consistent with paragraph (1), for 
        an authorized user who violates paragraph (1) or (2) of 
        subsection (h).

    ``(l) Compatibility of State and Local Laws.--
            ``(1) Preemption.--Except as provided under paragraph (2), 
        any law, regulation, order, or other requirement of a State, 
        political subdivision of a State, or Indian tribe related to a 
        commercial driver's license holder subject to alcohol or 
        controlled substance testing under title 49, Code of Federal 
        Regulations, that is inconsistent with this section or a 
        regulation issued pursuant to this section is preempted.
            ``(2) Applicability.--The preemption under paragraph (1) 
        shall include--
                    ``(A) the reporting of valid positive results from 
                alcohol screening tests and drug tests;
                    ``(B) the refusal to provide a specimen for an 
                alcohol screening test or drug test; and
                    ``(C) other violations of subpart B of part 382 of 
                title 49, Code of Federal Regulations (or any subsequent 
                corresponding regulations).
            ``(3) Exception.--A law, regulation, order, or other 
        requirement of a State, political subdivision of a State, or 
        Indian tribe shall not be preempted under this subsection to the 
        extent it relates to an action taken with respect to a 
        commercial motor vehicle operator's commercial driver's license 
        or driving record as a result of the driver's--
                    ``(A) verified positive alcohol or drug test result;
                    ``(B) refusal to provide a specimen for the test; or

[[Page 126 STAT. 802]]

                    ``(C) other violations of subpart B of part 382 of 
                title 49, Code of Federal Regulations (or any subsequent 
                corresponding regulations).

    ``(m) Definitions.--In this section--
            ``(1) Authorized user.--The term `authorized user' means an 
        employer, State licensing authority, or other person granted 
        access to the clearinghouse under subsection (h).
            ``(2) Chief commercial driver's licensing official.--The 
        term `chief commercial driver's licensing official' means the 
        official in a State who is authorized to--
                    ``(A) maintain a record about commercial driver's 
                licenses issued by the State; and
                    ``(B) take action on commercial driver's licenses 
                issued by the State.
            ``(3) Clearinghouse.--The term `clearinghouse' means the 
        clearinghouse established under subsection (a).
            ``(4) Commercial motor vehicle operator.--The term 
        `commercial motor vehicle operator' means an individual who--
                    ``(A) possesses a valid commercial driver's license 
                issued in accordance with section 31308; and
                    ``(B) is subject to controlled substances and 
                alcohol testing under title 49, Code of Federal 
                Regulations.
            ``(5) Employer.--The term `employer' means a person or 
        entity employing, or seeking to employ, 1 or more employees 
        (including an individual who is self-employed) to be commercial 
        motor vehicle operators.
            ``(6) Medical review officer.--The term `medical review 
        officer' means a licensed physician who is responsible for--
                    ``(A) receiving and reviewing a laboratory result 
                generated under the testing program;
                    ``(B) evaluating a medical explanation for a 
                controlled substances test under title 49, Code of 
                Federal Regulations; and
                    ``(C) interpreting the results of a controlled 
                substances test.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(8) Service agent.--The term `service agent' means a 
        person or entity, other than an employee of the employer, who 
        provides services to employers or employees under the testing 
        program.
            ``(9) Testing program.--The term `testing program' means the 
        alcohol and controlled substances testing program required under 
        title 49, Code of Federal Regulations.''.

    (b) Conforming Amendment.--The analysis for chapter 313 is amended 
by inserting after the item relating to section 31306 the following:

``31306a. National clearinghouse for positive controlled substance and 
           alcohol test results of commercial motor vehicle 
           operators.''.

                         Subtitle E--Enforcement

SEC. 32501. INSPECTION DEMAND AND DISPLAY OF CREDENTIALS.

    (a) Safety Investigations.--Section 504(c) is amended--

[[Page 126 STAT. 803]]

            (1) by inserting ``, or an employee of the recipient of a 
        grant issued under section 31102 of this title'' after ``a 
        contractor''; and
            (2) by inserting ``, in person or in writing'' after 
        ``proper credentials''.

    (b) Civil Penalty.--Section 521(b)(2)(E) is amended--
            (1) by redesignating subparagraph (E) as subparagraph 
        (E)(i); and
            (2) by adding at the end the following:
                          ``(ii) Place out of service.--The Secretary 
                      may by regulation adopt procedures for placing out 
                      of service the commercial motor vehicle of a 
                      foreign-domiciled motor carrier that fails to 
                      promptly allow the Secretary to inspect and copy a 
                      record or inspect equipment, land, buildings, or 
                      other property.''.

    (c) Hazardous Materials Investigations.--Section 5121(c)(2) is 
amended by inserting ``, in person or in writing,'' after ``proper 
credentials''.
    (d) Commercial Investigations.--Section 14122(b) is amended by 
inserting ``, in person or in writing'' after ``proper credentials''.
SEC. 32502. OUT OF SERVICE PENALTY FOR DENIAL OF ACCESS TO 
                            RECORDS.

    Section 521(b)(2)(E) is amended--
            (1) by inserting after ``$10,000.'' the following: ``In the 
        case of a motor carrier, the Secretary may also place the 
        violator's motor carrier operations out of service.''; and
            (2) by striking ``such penalty'' after ``It shall be a 
        defense to'' and inserting ``a penalty''.
SEC. 32503. PENALTIES FOR VIOLATION OF OPERATION OUT OF SERVICE 
                            ORDERS.

    Section 521(b)(2) is amended by adding at the end the following:
                    ``(F) Penalty for violations relating to out of 
                service orders.--A motor carrier or employer (as defined 
                in section 31132) that operates a commercial motor 
                vehicle in commerce in violation of a prohibition on 
                transportation under section 31144(c) of this title or 
                an imminent hazard out of service order issued under 
                subsection (b)(5) of this section or section 5121(d) of 
                this title shall be liable for a civil penalty not to 
                exceed $25,000.''.
SEC. 32504. IMPOUNDMENT AND IMMOBILIZATION OF COMMERCIAL MOTOR 
                            VEHICLES FOR IMMINENT HAZARD.

    Section 521(b) is amended by adding at the end the following:
            ``(15) Impoundment of commercial motor vehicles.--
                    ``(A) Enforcement of imminent hazard out-of-service 
                orders.--
                          ``(i) The Secretary, or an authorized State 
                      official carrying out motor carrier safety 
                      enforcement activities under section 31102, may 
                      enforce an imminent hazard out-of-service order 
                      issued under chapters 5, 51, 131 through 149, 311, 
                      313, or 315 of this title, or a regulation 
                      promulgated thereunder, by towing and impounding a 
                      commercial motor vehicle until the order is 
                      rescinded.
                          ``(ii) Enforcement shall not unreasonably 
                      interfere with the ability of a shipper, carrier, 
                      broker, or other

[[Page 126 STAT. 804]]

                      party to arrange for the alternative 
                      transportation of any cargo or passenger being 
                      transported at the time the commercial motor 
                      vehicle is immobilized. In the case of a 
                      commercial motor vehicle transporting passengers, 
                      the Secretary or authorized State official shall 
                      provide reasonable, temporary, and secure shelter 
                      and accommodations for passengers in transit.
                          ``(iii) <<NOTE: Notification.>> The 
                      Secretary's designee or an authorized State 
                      official carrying out motor carrier safety 
                      enforcement activities under section 31102, shall 
                      immediately notify the owner of a commercial motor 
                      vehicle of the impoundment and the opportunity for 
                      review of the impoundment. <<NOTE: Deadline.>> A 
                      review shall be provided in accordance with 
                      section 554 of title 5, except that the review 
                      shall occur not later than 10 days after the 
                      impoundment.
                    ``(B) Issuance of regulations.--The Secretary shall 
                promulgate regulations on the use of impoundment or 
                immobilization of commercial motor vehicles as a means 
                of enforcing additional out-of-service orders issued 
                under chapters 5, 51, 131 through 149, 311, 313, or 315 
                of this title, or a regulation promulgated thereunder. 
                Regulations promulgated under this subparagraph shall 
                include consideration of public safety, the protection 
                of passengers and cargo, inconvenience to passengers, 
                and the security of the commercial motor vehicle.
                    ``(C) Definition.--In this paragraph, the term 
                `impoundment' or 'impounding' means the seizing and 
                taking into custody of a commercial motor vehicle or the 
                immobilizing of a commercial motor vehicle through the 
                attachment of a locking device or other mechanical or 
                electronic means.''.
SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS.

    (a) Penalties.--Section 524 is amended--
            (1) by striking ``knowingly and willfully'';
            (2) by inserting after ``this chapter'' the following: ``, 
        chapter 51, subchapter III of chapter 311 (except sections 31138 
        and 31139) or section 31302, 31303, 31304, 31305(b), 
        31310(g)(1)(A), or 31502 of this title, or a regulation issued 
        under any of those provisions,'';
            (3) by striking ``$200 but not more than $500'' and 
        inserting ``$2,000 but not more than $5,000''; and
            (4) by striking ``$250 but not more than $2,000'' and 
        inserting ``$2,500 but not more than $7,500''.

    (b) Evasion of Regulation.--Section 14906 is amended--
            (1) by striking ``$200'' and inserting ``at least $2,000'';
            (2) by striking ``$250'' and inserting ``$5,000''; and
            (3) by inserting after ``a subsequent violation'' the 
        following:

    ``, and may be subject to criminal penalties''.
SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE SAFETY 
                            REGULATION AND OPERATORS.

    Section 521(b)(2)(D) is amended by striking ``ability to pay,''.
SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD.

    Section 31310(f) is amended--

[[Page 126 STAT. 805]]

            (1) in paragraph (1) by inserting ``section 521 or'' before 
        ``section 5102''; and
            (2) in paragraph (2) by inserting ``section 521 or'' before 
        ``section 5102''.
SEC. 32508. DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT 
                            AGENCIES.

    Section 31106(e) is amended--
            (1) by redesignating subsection (e) as subsection (e)(1); 
        and
            (2) by inserting at the end the following:
            ``(2) In general.--Notwithstanding any prohibition on 
        disclosure of information in section 31105(h) or 31143(b) of 
        this title or section 552a of title 5, the Secretary may 
        disclose information maintained by the Secretary pursuant to 
        chapters 51, 135, 311, or 313 of this title to appropriate 
        personnel of a State agency or instrumentality authorized to 
        carry out State commercial motor vehicle safety activities and 
        commercial driver's license laws, or appropriate personnel of a 
        local law enforcement agency, in accordance with standards, 
        conditions, and procedures as determined by the Secretary. 
        Disclosure under this section shall not operate as a waiver by 
        the Secretary of any applicable privilege against disclosure 
        under common law or as a basis for compelling disclosure under 
        section 552 of title 5.''.
SEC. 32509. GRADE CROSSING SAFETY REGULATIONS.

    Section 112(2) of the Hazardous Materials Transportation 
Authorization Act of 1994 (Public Law 103-311) is amended by striking 
``315 of such title (relating to motor carrier safety)'' and inserting 
``311 of such title (relating to commercial motor vehicle safety)''.

             Subtitle F--Compliance, Safety, Accountability

SEC. 32601. MOTOR CARRIER SAFETY ASSISTANCE PROGRAM.

    (a) In General.--Section 31102(b) is amended--
            (1) by amending the heading to read as follows:

    ``(b) Motor Carrier Safety Assistance Program.--'';
            (2) by redesignating paragraphs (1) through (3) as (2) 
        through (4), respectively;
            (3) by inserting before paragraph (2), as redesignated, the 
        following:
            ``(1) Program goal.--The goal of the Motor Carrier Safety 
        Assistance Program is to ensure that the Secretary, States, 
        local government agencies, and other political jurisdictions 
        work in partnership to establish programs to improve motor 
        carrier, commercial motor vehicle, and driver safety to support 
        a safe and efficient surface transportation system by--
                    ``(A) making targeted investments to promote safe 
                commercial motor vehicle transportation, including 
                transportation of passengers and hazardous materials;
                    ``(B) investing in activities likely to generate 
                maximum reductions in the number and severity of 
                commercial motor vehicle crashes and fatalities 
                resulting from such crashes;

[[Page 126 STAT. 806]]

                    ``(C) adopting and enforcing effective motor 
                carrier, commercial motor vehicle, and driver safety 
                regulations and practices consistent with Federal 
                requirements; and
                    ``(D) assessing and improving statewide performance 
                by setting program goals and meeting performance 
                standards, measures, and benchmarks.'';
            (4) in paragraph (2), as redesignated--
                    (A) by striking ``make a declaration of'' in 
                subparagraph (I) and inserting ``demonstrate'';
                    (B) by amending subparagraph (M) to read as follows:
                    ``(M) ensures participation in appropriate Federal 
                Motor Carrier Safety Administration systems and other 
                information systems by all appropriate jurisdictions 
                receiving Motor Carrier Safety Assistance Program 
                funding;'';
                    (C) in subparagraph (Q), by inserting ``and 
                dedicated sufficient resources to'' between 
                ``established'' and ``a program'';
                    (D) in subparagraph (W), by striking ``and'' after 
                the semicolon;
                    (E) in subparagraph (X), by striking the period and 
                inserting ``; and''; and
                    (F) by adding after subparagraph (X) the following:
                    ``(Y) ensures that the State will transmit to its 
                roadside inspectors the notice of each Federal exemption 
                granted pursuant to section 31315(b) and provided to the 
                State by the Secretary, including the name of the person 
                granted the exemption and any terms and conditions that 
                apply to the exemption.''; and
            (5) by amending paragraph (4), as redesignated, to read as 
        follows:
            ``(4) Maintenance of effort.--
                    ``(A) <<NOTE: Plans.>> In general.--A plan submitted 
                by a State under paragraph (2) shall provide that the 
                total expenditure of amounts of the lead State agency 
                responsible for implementing the plan will be maintained 
                at a level at least equal to the average level of that 
                expenditure for fiscal years 2004 and 2005.
                    ``(B) Average level of state expenditures.--In 
                estimating the average level of State expenditure under 
                subparagraph (A), the Secretary--
                          ``(i) may allow the State to exclude State 
                      expenditures for Government-sponsored 
                      demonstration or pilot programs; and
                          ``(ii) <<NOTE: Requirements.>> shall require 
                      the State to exclude State matching amounts used 
                      to receive Government financing under this 
                      subsection.
                    ``(C) Waiver.--Upon the request of a State, the 
                Secretary may waive or modify the requirements of this 
                paragraph for 1 fiscal year, if the Secretary determines 
                that a waiver is equitable due to exceptional or 
                uncontrollable circumstances, such as a natural disaster 
                or a serious decline in the financial resources of the 
                State motor carrier safety assistance program agency.''.

[[Page 126 STAT. 807]]

SEC. 32602. PERFORMANCE AND REGISTRATION INFORMATION SYSTEMS 
                            MANAGEMENT PROGRAM.

    Section 31106(b) is amended by amending paragraph (3)(C) to read as 
follows:
                    ``(C) establish and implement a process--
                          ``(i) to cancel the motor vehicle registration 
                      and seize the registration plates of a vehicle 
                      when an employer is found liable under section 
                      31310(i)(2)(C) for knowingly allowing or requiring 
                      an employee to operate such a commercial motor 
                      vehicle in violation of an out-of-service order; 
                      and
                          ``(ii) to reinstate the vehicle registration 
                      or return the registration plates of the 
                      commercial motor vehicle, subject to sanctions 
                      under clause (i), if the Secretary permits such 
                      carrier to resume operations after the date of 
                      issuance of such order.''.
SEC. 32603. AUTHORIZATION OF APPROPRIATIONS.

    (a) Motor Carrier Safety Grants.--Section 31104(a) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking paragraph (8); and
            (3) by inserting after paragraph (7) the following:
            ``(8) $215,000,000 for fiscal year 2013; and
            ``(9) $218,000,000 for fiscal year 2014.''.

    (b) Administrative Expenses.--Section 31104(i)(1) is amended--
            (1) by striking ``and'' at the end of subparagraph (G); and
            (2) by striking subparagraph (H); and
            (3) by inserting after subparagraph (G) the following:
                    ``(H) $251,000,000 for fiscal year 2013; and
                    ``(I) $259,000,000 for fiscal year 2014.''.

    (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 Stat. 1715) 
is amended to read as follows:
    ``(c) Grant Programs.--There are authorized to be appropriated from 
the Highway Trust Fund (other than the Mass Transit Account) the 
following sums for the following Federal Motor Carrier Safety 
Administration programs:
            ``(1) Commercial driver's license program improvement 
        grants.--For commercial driver's license program improvement 
        grants under section 31313 of title 49, United States Code 
        $30,000,000 for each of fiscal years 2013 and 2014.
            ``(2) Border enforcement grants.--For border enforcement 
        grants under section 31107 of such title $32,000,000 for each of 
        fiscal years 2013 and 2014.
            ``(3) Performance and registration information system 
        management grant program.--For the performance and registration 
        information system management grant program under section 31109 
        of such title $5,000,000 for each of fiscal years 2013 and 2014.
            ``(4) Commercial vehicle information systems and networks 
        deployment.--For carrying out the commercial vehicle information 
        systems and networks deployment program under section 4126 of 
        this Act, $25,000,000 for each of fiscal years 2013 and 2014.

[[Page 126 STAT. 808]]

            ``(5) Safety data improvement grants.--For safety data 
        improvement grants under section 4128 of this Act, $3,000,000 
        for each of fiscal years 2013 and 2014.''.

    (d) High-priority Activities.--Section 31104(k)(2) is amended by 
striking ``2011 and $11,250,000 for the period beginning on October 1, 
2011, and ending on June 30, 2012,'' and inserting ``2014''.
    (e) New Entrant Audits.--Section 31144(g)(5)(B) is amended to read 
as follows:
                    ``(B) Set aside.--The Secretary shall set aside from 
                amounts made available by section 31104(a) up to 
                $32,000,000 per fiscal year for audits of new entrant 
                motor carriers conducted pursuant to this paragraph.''.

    (f) Outreach and Education.--Section 4127(e) of SAFETEA-LU (119 
Stat. 1741) <<NOTE: 49 USC 31100 note.>> is amended to read as follows:

    ``(e) Funding.--From amounts made available under section 31104(i) 
of title 49, United States Code, the Secretary shall make available 
$4,000,000 to the Federal Motor Carrier Safety Administration for each 
of fiscal years 2013 and 2014 to carry out this section (other than 
subsection (f)).''.
    (g) Grant Program for Commercial Motor Vehicle Operators.-- 
<<NOTE: Time period.>> Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301 
note) is amended by striking ``2011 and $750,000 for the period 
beginning on October 1, 2011, and ending on June 30, 2012,'' and 
inserting ``2014''.

    (h) Border Enforcement Grants.--Section 31107 is amended--
            (1) by striking subsection (b); and
            (2) redesignating subsections (c) and (d) as subsections (b) 
        and (c), respectively.

    (i) <<NOTE: 49 USC 31100 note.>> Administration of Grant Programs.--
The Secretary is authorized to identify and implement processes to 
reduce the administrative burden on the States and the Department of 
Transportation concerning the application and management of the grant 
programs authorized under chapter 311 and chapter 313 of title 49, 
United States Code.
SEC. 32604. GRANTS FOR COMMERCIAL DRIVER'S LICENSE PROGRAM 
                            IMPLEMENTATION.

    (a) Grants for Commercial Driver's License Program Implementation.--
Section 31313(a) is amended to read as follows:
    ``(a) Commercial Driver's License Program Improvement Grants.--
            ``(1) Program goal.--The Secretary of Transportation may 
        make a grant to a State in a fiscal year--
                    ``(A) to comply with the requirements of section 
                31311;
                    ``(B) in the case of a State that is making a good 
                faith effort toward substantial compliance with the 
                requirements of this section and section 31311, to 
                improve its implementation of its commercial driver's 
                license program, including expenses--
                          ``(i) for computer hardware and software;
                          ``(ii) for publications, testing, personnel, 
                      training, and quality control;
                          ``(iii) for commercial driver's license 
                      program coordinators;

[[Page 126 STAT. 809]]

                          ``(iv) to implement or maintain a system to 
                      notify an employer of an operator of a commercial 
                      motor vehicle of the suspension or revocation of 
                      the operator's commercial driver's license 
                      consistent with the standards developed under 
                      section 32303(b) of the Commercial Motor Vehicle 
                      Safety Enhancement Act of 2012.
            ``(2) Prohibitions.--A State may not use grant funds under 
        this subsection to rent, lease, or buy land or buildings.''.

    (b) Conforming Amendment.--
            (1) The heading for section 31313 is amended by striking 
        ``improvements'' and inserting ``implementation''.
            (2) The analysis of chapter 313 is amended by striking the 
        item relating to section 31313 and inserting the following:

``31313. Grants for commercial driver's license program 
           implementation.''.

SEC. 32605. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS.

    Not <<NOTE: Deadline. Reports.>> later than 6 months after the date 
of enactment of this Act, the Secretary shall submit a report to the 
Committee on Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives that includes--
            (1) established time frames and milestones for resuming the 
        Commercial Vehicle Information Systems and Networks Program; and
            (2) a strategic workforce plan for its grants management 
        office to ensure that it has determined the skills and 
        competencies that are critical to achieving its mission goals.

        Subtitle G--M <<NOTE: Motorcoach Enhanced Safety Act of 
2012.>> otorcoach Enhanced Safety Act of 2012
SEC. 32701. <<NOTE: 49 USC 31136 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Motorcoach Enhanced Safety Act 
of 2012''.
SEC. 32702. <<NOTE: 49 USC 31136 note.>> DEFINITIONS.

    In this subtitle:
            (1) Advanced glazing.--The term ``advanced glazing'' means 
        glazing installed in a portal on the side or the roof of a 
        motorcoach that is designed to be highly resistant to partial or 
        complete occupant ejection in all types of motor vehicle 
        crashes.
            (2) Bus.--The term ``bus'' has the meaning given the term in 
        section 571.3(b) of title 49, Code of Federal Regulations (as in 
        effect on the day before the date of enactment of this Act).
            (3) Commercial motor vehicle.--Except as otherwise 
        specified, the term ``commercial motor vehicle'' has the meaning 
        given the term in section 31132(1) of title 49, United States 
        Code.
            (4) Direct tire pressure monitoring system.--The term 
        ``direct tire pressure monitoring system'' means a tire pressure 
        monitoring system that is capable of directly detecting when the 
        air pressure level in any tire is significantly under-inflated

[[Page 126 STAT. 810]]

        and providing the driver a low tire pressure warning as to which 
        specific tire is significantly under-inflated.
            (5) Motor carrier.--The term ``motor carrier'' means--
                    (A) a motor carrier (as defined in section 13102(14) 
                of title 49, United States Code); or
                    (B) a motor private carrier (as defined in section 
                13102(15) of that title).
            (6) Motorcoach.--The term ``motorcoach'' has the meaning 
        given the term ``over-the-road bus'' in section 3038(a)(3) of 
        the Transportation Equity Act for the 21st Century (49 U.S.C. 
        5310 note), but does not include--
                    (A) a bus used in public transportation provided by, 
                or on behalf of, a public transportation agency; or
                    (B) a school bus, including a multifunction school 
                activity bus.
            (7) Motorcoach services.--The term ``motorcoach services'' 
        means passenger transportation by motorcoach for compensation.
            (8) Multifunction school activity bus.--The term 
        ``multifunction school activity bus'' has the meaning given the 
        term in section 571.3(b) of title 49, Code of Federal 
        Regulations (as in effect on the day before the date of 
        enactment of this Act).
            (9) Portal.--The term ``portal'' means any opening on the 
        front, side, rear, or roof of a motorcoach that could, in the 
        event of a crash involving the motorcoach, permit the partial or 
        complete ejection of any occupant from the motorcoach, including 
        a young child.
            (10) Provider of motorcoach services.--The term ``provider 
        of motorcoach services'' means a motor carrier that provides 
        passenger transportation services with a motorcoach, including 
        per-trip compensation and contracted or chartered compensation.
            (11) Public transportation.--The term ``public 
        transportation'' has the meaning given the term in section 5302 
        of title 49, United States Code.
            (12) Safety belt.--The term ``safety belt'' has the meaning 
        given the term in section 153(i)(4)(B) of title 23, United 
        States Code.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
SEC. 32703. <<NOTE: Deadlines. 49 USC 31136 note.>> REGULATIONS 
                            FOR IMPROVED OCCUPANT PROTECTION, 
                            PASSENGER EVACUATION, AND CRASH 
                            AVOIDANCE.

    (a) Regulations Required Within 1 Year.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall prescribe 
regulations requiring safety belts to be installed in motorcoaches at 
each designated seating position.
    (b) Regulations Required Within 2 Years.--Not later than 2 years 
after the date of enactment of this Act, the Secretary shall prescribe 
regulations that address the following commercial motor vehicle 
standards, if the Secretary determines that such standards meet the 
requirements and considerations set forth in subsections (a) and (b) of 
section 30111 of title 49, United States Code:
            (1) Roof strength and crush resistance.--The Secretary shall 
        establish improved roof and roof support standards for

[[Page 126 STAT. 811]]

        motorcoaches that substantially improve the resistance of 
        motorcoach roofs to deformation and intrusion to prevent serious 
        occupant injury in rollover crashes involving motorcoaches.
            (2) <<NOTE: Standards.>> Anti-ejection safety 
        countermeasures.--The Secretary shall consider requiring 
        advanced glazing standards for each motorcoach portal and shall 
        consider other portal improvements to prevent partial and 
        complete ejection of motorcoach passengers, including children. 
        In prescribing such standards, the Secretary shall consider the 
        impact of such standards on the use of motorcoach portals as a 
        means of emergency egress.
            (3) Rollover crash avoidance.--The Secretary shall consider 
        requiring motorcoaches to be equipped with stability enhancing 
        technology, such as electronic stability control and torque 
        vectoring, to reduce the number and frequency of rollover 
        crashes among motorcoaches.

    (c) Commercial Motor Vehicle Tire Pressure Monitoring Systems.-- 
<<NOTE: Deadline.>> Not later than 3 years after the date of enactment 
of this Act, the Secretary shall prescribe the following commercial 
vehicle regulation:
            (1) In general.--The Secretary shall consider requiring 
        motorcoaches to be equipped with direct tire pressure monitoring 
        systems that warn the operator of a commercial motor vehicle 
        when any tire exhibits a level of air pressure that is below a 
        specified level of air pressure established by the Secretary, if 
        the Secretary determines that such standards meet the 
        requirements and considerations set forth in subsections (a) and 
        (b) of section 30111 of title 49, United States Code.
            (2) Performance requirements.--In any standard adopted under 
        paragraph (1), the Secretary shall include performance 
        requirements to meet the objectives identified in paragraph (1) 
        of this subsection.

    (d) <<NOTE: Deadline.>> Tire Performance Standard.--Not later than 3 
years after the date of enactment of this Act, the Secretary shall 
consider--
            (1) issuing a rule to upgrade performance standards for 
        tires used on motorcoaches, including an enhanced endurance test 
        and a new high-speed performance test; or
            (2) <<NOTE: Reports.>> if the Secretary determines that a 
        standard does not meet the requirements and considerations set 
        forth in subsections (a) and (b) of section 30111 of title 49, 
        United States Code, submit a report that describes the reasons 
        for not prescribing such a standard to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    (B) the Committee on Transportation and 
                Infrastructure of the House of Representatives; and
                    (C) the Committee on Energy and Commerce of the 
                House of Representatives.

    (e) Application of Regulations.--
            (1) New motorcoaches.--Any regulation prescribed in 
        accordance with subsection (a), (b), (c), or (d) shall--
                    (A) apply to all motorcoaches manufactured more than 
                3 years after the date on which the regulation is 
                published as a final rule;

[[Page 126 STAT. 812]]

                    (B) take into account the impact to seating capacity 
                of changes to size and weight of motorcoaches and the 
                ability to comply with State and Federal size and weight 
                requirements; and
                    (C) be based on the best available science.
            (2) Retrofit assessment for existing motorcoaches.--
                    (A) In general.--The Secretary may assess the 
                feasibility, benefits, and costs with respect to the 
                application of any requirement established under 
                subsection (a) or (b)(2) to motorcoaches manufactured 
                before the date on which the requirement applies to new 
                motorcoaches under paragraph (1).
                    (B) Report.--The Secretary shall submit a report on 
                the assessment to the Committee on Commerce, Science, 
                and Transportation of the Senate and the Committee on 
                Transportation and Infrastructure and the Committee on 
                Energy and Commerce of the House of Representatives not 
                later than 2 years after the date of enactment of this 
                Act.
SEC. 32704. <<NOTE: 49 USC 31136 note.>> FIRE PREVENTION AND 
                            MITIGATION.

    (a) Research and Testing.--The Secretary shall conduct research and 
testing to determine the most prevalent causes of motorcoach fires and 
the best methods to prevent such fires and to mitigate the effect of 
such fires, both inside and outside the motorcoach. Such research and 
testing shall consider flammability of exterior components, smoke 
suppression, prevention of and resistance to wheel well fires, automatic 
fire suppression, passenger evacuation, causation and prevention of 
motorcoach fires, and improved fire extinguishers.
    (b) <<NOTE: Deadline.>> Standards.--Not later than 3 years after the 
date of enactment of this Act, the Secretary may issue fire prevention 
and mitigation standards for motorcoaches, based on the results of the 
Secretary's research and testing, taking into account highway size and 
weight restrictions applicable to motorcoaches, if the Secretary 
determines that such standards meet the requirements and considerations 
set forth in subsections (a) and (b) of section 30111 of title 49, 
United States Code.
SEC. 32705. <<NOTE: 49 USC 31136 note.>> OCCUPANT PROTECTION, 
                            COLLISION AVOIDANCE, FIRE CAUSATION, 
                            AND FIRE EXTINGUISHER RESEARCH AND 
                            TESTING.

    (a) <<NOTE: Deadlines.>> Safety Research Initiatives.--Not later 
than 3 years after the date of enactment of this Act, the Secretary 
shall complete the following research and testing:
            (1) Interior impact protection.--The Secretary shall 
        research and test enhanced occupant impact protection 
        technologies for motorcoach interiors to reduce serious injuries 
        for all passengers of motorcoaches.
            (2) Compartmentalization safety countermeasures.--The 
        Secretary shall research and test enhanced compartmentalization 
        safety countermeasures for motorcoaches, including enhanced 
        seating designs.
            (3) Collision avoidance systems.--The Secretary shall 
        research and test forward and lateral crash warning systems 
        applications for motorcoaches.

    (b) <<NOTE: Deadline.>> Rulemaking.--Not later than 2 years after 
the completion of each research and testing initiative required under 
subsection

[[Page 126 STAT. 813]]

(a), the Secretary shall issue final motor vehicle safety standards if 
the Secretary determines that such standards meet the requirements and 
considerations set forth in subsections (a) and (b) of section 30111 of 
title 49, United States Code.
SEC. <<NOTE: 49 USC 31136 note.>> 32706. CONCURRENCE OF RESEARCH 
                            AND RULEMAKING.

    (a) Requirements.--To the extent feasible, the Secretary shall 
ensure that research programs are carried out concurrently, and in a 
manner that concurrently assesses results, potential countermeasures, 
costs, and benefits.
    (b) Authority to Combine Rulemakings.--When considering each of the 
rulemaking provisions, the Secretary may initiate a single rulemaking 
proceeding encompassing all aspects or may combine the rulemakings as 
the Secretary deems appropriate.
    (c) Considerations.--If the Secretary undertakes separate rulemaking 
proceedings, the Secretary shall--
            (1) consider whether each added aspect of rulemaking may 
        contribute to addressing the safety need determined to require 
        rulemaking;
            (2) consider the benefits obtained through the safety belts 
        rulemaking in section 32703(a); and
            (3) avoid duplicative benefits, costs, and countermeasures.
SEC. <<NOTE: 49 USC 31136 note.>> 32707. IMPROVED OVERSIGHT OF 
                            MOTORCOACH SERVICE PROVIDERS.

    (a) Safety Reviews.--Section 31144, as amended by section 32202 of 
this Act, is amended by adding at the end the following:
    ``(i) Periodic Safety Reviews of Owners and Operators of Interstate 
For-hire Commercial Motor Vehicles Designed or Used to Transport 
Passengers.--
            ``(1) Safety review.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) <<NOTE: Determination.>> determine the 
                      safety fitness of each motor carrier of passengers 
                      who the Secretary registers under section 13902 or 
                      31134 through a simple and understandable rating 
                      system that allows passengers to compare the 
                      safety performance of each such motor carrier; and
                          ``(ii) assign a safety fitness rating to each 
                      such motor carrier.
                    ``(B) <<NOTE: Time periods.>> Applicability.--
                Subparagraph (A) shall apply--
                          ``(i) to any provider of motorcoach services 
                      registered with the Administration after the date 
                      of enactment of the Motorcoach Enhanced Safety Act 
                      of 2012 beginning not later than 2 years after the 
                      date of such registration; and
                          ``(ii) to any provider of motorcoach services 
                      registered with the Administration on or before 
                      the date of enactment of that Act beginning not 
                      later than 3 years after the date of enactment of 
                      that Act.
            ``(2) <<NOTE: Regulations.>> Periodic review.--The Secretary 
        shall establish, by regulation, a process for monitoring the 
        safety performance of each motor carrier of passengers on a 
        regular basis following the assignment of a safety fitness 
        rating, including progressive intervention to correct unsafe 
        practices.
            ``(3) Enforcement strike forces.--In addition to the 
        enhanced monitoring and enforcement actions required under

[[Page 126 STAT. 814]]

        paragraph (2), the Secretary may organize special enforcement 
        strike forces targeting motor carriers of passengers.
            ``(4) Periodic update of safety fitness rating.--In 
        conducting the safety reviews required under this subsection, 
        the Secretary shall--
                    ``(A) reassess the safety fitness rating of each 
                motor carrier of passengers not less frequently than 
                once every 3 years; and
                    ``(B) annually assess the safety fitness of certain 
                motor carriers of passengers that serve primarily urban 
                areas with high passenger loads.''.

    (b) Disclosure of Safety Performance Ratings of Motorcoach Services 
and Operations.--
            (1) Definitions.--In this subsection:
                    (A) Motorcoach.--
                          (i) In general.--Except as provided in clause 
                      (ii), the term ``motorcoach'' has the meaning 
                      given the term ``over-the-road bus'' in section 
                      3038(a)(3) of the Transportation Equity Act for 
                      the 21st Century (49 U.S.C. 5310 note).
                          (ii) Exclusions.--The term ``motorcoach'' does 
                      not include--
                                    (I) a bus used in public 
                                transportation that is provided by a 
                                State or local government; or
                                    (II) a school bus (as defined in 
                                section 30125(a)(1) of title 49, United 
                                States Code), including a multifunction 
                                school activity bus.
                    (B) Motorcoach services and operations.--The term 
                ``motorcoach services and operations'' means passenger 
                transportation by a motorcoach for compensation.
            (2) Requirements for the disclosure of safety performance 
        ratings of motorcoach services and operations.--
                    (A) <<NOTE: Deadline. Notice. Public comments.>> In 
                general.--Not later than 1 year after the date of 
                enactment of this Act, the Secretary shall establish, 
                through notice and opportunity for public to comment, 
                requirements to improve the accessibility to the public 
                of safety rating information of motorcoach services and 
                operations.
                    (B) Display.--In establishing the requirements under 
                subparagraph (A), the Secretary shall consider 
                requirements for each motor carrier that owns or leases 
                1 or more motorcoaches that transport passengers subject 
                to the Secretary's jurisdiction under section 13501 of 
                title 49, United States Code, to prominently display 
                safety fitness information pursuant to section 31144 of 
                title 49, United States Code--
                          (i) in each terminal of departure;
                          (ii) in the motorcoach and visible from a 
                      position exterior to the vehicle at the point of 
                      departure, if the motorcoach does not depart from 
                      a terminal; and
                          (iii) at all points of sale for such 
                      motorcoach services and operations.

[[Page 126 STAT. 815]]

SEC. 32708. <<NOTE: 49 USC 31136 note.>> REPORT ON FEASIBILITY, 
                            BENEFITS, AND COSTS OF ESTABLISHING A 
                            SYSTEM OF CERTIFICATION OF TRAINING 
                            PROGRAMS.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary of Transportation shall submit a report to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives that 
describes the feasibility, benefits, and costs of establishing a system 
of certification of public and private schools and of motor carriers and 
motorcoach operators that provide motorcoach driver training.
SEC. 32709. <<NOTE: 49 USC 31136 note.>> COMMERCIAL DRIVER'S 
                            LICENSE PASSENGER ENDORSEMENT 
                            REQUIREMENTS.

    (a) <<NOTE: Deadline. Review. Assessment.>> In General.--Not later 
than 2 years after the date of enactment of this Act, the Secretary of 
Transportation shall review and assess the current knowledge and skill 
testing requirements for a commercial driver's license passenger 
endorsement to determine what improvements to the knowledge test, the 
examination of driving skills, and the application of such requirements 
are necessary to ensure the safe operation of commercial motor vehicles 
designed or used to transport passengers.

    (b) Report.--Not later than 120 days after completion of the review 
and assessment under subsection (a), the Secretary of Transportation 
shall submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate--
            (1) a report on the review and assessment conducted under 
        subsection (a);
            (2) a plan to implement any changes to the knowledge and 
        skills tests; and
            (3) a timeframe by which the Secretary will implement the 
        changes.
SEC. 32710. <<NOTE: 49 USC 31136 note.>> SAFETY INSPECTION PROGRAM 
                            FOR COMMERCIAL MOTOR VEHICLES OF 
                            PASSENGERS.

    Not later than <<NOTE: Deadline. Regulations.>>  3 years after the 
date of enactment of this Act, the Secretary of Transportation shall 
complete a rulemaking proceeding to consider requiring States to 
establish a program for annual inspections of commercial motor vehicles 
designed or used to transport passengers, including an assessment of--
            (1) the risks associated with improperly maintained or 
        inspected commercial motor vehicles designed or used to 
        transport passengers;
            (2) the effectiveness of existing Federal standards for the 
        inspection of such vehicles in--
                    (A) mitigating the risks described in paragraph (1); 
                and
                    (B) ensuring the safe and proper operation condition 
                of such vehicles; and
            (3) the costs and benefits of a mandatory inspection 
        program.
SEC. 32711. <<NOTE: 49 USC 31136 note.>> REGULATIONS.

    Any standard or regulation prescribed or modified pursuant to the 
Motorcoach Enhanced Safety Act of 2012 shall be prescribed or modified 
in accordance with section 553 of title 5, United States Code.

[[Page 126 STAT. 816]]

        Subtitle H--Safe Highways and Infrastructure Preservation

SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY.

    (a) <<NOTE: Deadline.>> Truck Size and Weight Limits Study.--Not 
later than 45 days after the date of enactment of this Act, the 
Secretary, in consultation with each relevant State and other applicable 
Federal agencies, shall commence a comprehensive truck size and weight 
limits study. The study shall--
            (1) provide data on accident frequency and evaluate factors 
        related to accident risk of vehicles that operate with size and 
        weight limits that are in excess of the Federal law and 
        regulations in each State that allows vehicles to operate with 
        size and weight limits that are in excess of the Federal law and 
        regulations, or to operate under a Federal exemption or 
        grandfather right, in comparison to vehicles that do not operate 
        in excess of Federal law and regulations (other than vehicles 
        with exemptions or grandfather rights);
            (2) evaluate the impacts to the infrastructure in each State 
        that allows a vehicle to operate with size and weight limits 
        that are in excess of the Federal law and regulations, or to 
        operate under a Federal exemption or grandfather right, in 
        comparison to vehicles that do not operate in excess of Federal 
        law and regulations (other than vehicles with exemptions or 
        grandfather rights), including--
                    (A) the cost and benefits of the impacts in dollars;
                    (B) the percentage of trucks operating in excess of 
                the Federal size and weight limits; and
                    (C) the ability of each State to recover the cost 
                for the impacts, or the benefits incurred;
            (3) evaluate the frequency of violations in excess of the 
        Federal size and weight law and regulations, the cost of the 
        enforcement of the law and regulations, and the effectiveness of 
        the enforcement methods;
            (4) assess the impacts that vehicles that operate with size 
        and weight limits in excess of the Federal law and regulations, 
        or that operate under a Federal exemption or grandfather right, 
        in comparison to vehicles that do not operate in excess of 
        Federal law and regulations (other than vehicles with exemptions 
        or grandfather rights), have on bridges, including the impacts 
        resulting from the number of bridge loadings;
            (5) compare and contrast the potential safety and 
        infrastructure impacts of the current Federal law and 
        regulations regarding truck size and weight limits in relation 
        to--
                    (A) six-axle and other alternative configurations of 
                tractor-trailers; and
                    (B) where available, safety records of foreign 
                nations with truck size and weight limits and tractor-
                trailer configurations that differ from the Federal law 
                and regulations; and
            (6) estimate--
                    (A) the extent to which freight would likely be 
                diverted from other surface transportation modes to 
                principal arterial routes and National Highway System 
                intermodal connectors if alternative truck configuration 
                is allowed to

[[Page 126 STAT. 817]]

                operate and the effect that any such diversion would 
                have on other modes of transportation;
                    (B) the effect that any such diversion would have on 
                public safety, infrastructure, cost responsibilities, 
                fuel efficiency, freight transportation costs, and the 
                environment;
                    (C) the effect on the transportation network of the 
                United States that allowing alternative truck 
                configuration to operate would have; and
                    (D) whether allowing alternative truck configuration 
                to operate would result in an increase or decrease in 
                the total number of trucks operating on principal 
                arterial routes and National Highway System intermodal 
                connectors; and
            (7) identify all Federal rules and regulations impacted by 
        changes in truck size and weight limits.

    (b) Report.--Not later than 2 years after the date that the study is 
commenced under subsection (a), the Secretary shall submit a final 
report on the study, including all findings and recommendations, to the 
Committee on Commerce, Science, and Transportation and the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives.
SEC. 32802. COMPILATION OF EXISTING STATE TRUCK SIZE AND WEIGHT 
                            LIMIT LAWS.

    (a) <<NOTE: Deadline.>> In General.--Not later than 90 days after 
the date of enactment of this Act, the Secretary, in consultation with 
the States, shall begin to compile <<NOTE: Lists.>> --
            (1) a list for each State, as applicable, that describes 
        each route of the National Highway System that allows a vehicle 
        to operate in excess of the Federal truck size and weight limits 
        that--
                    (A) was authorized under State law on or before the 
                date of enactment of this Act; and
                    (B) was in actual and lawful operation on a regular 
                or periodic basis (including seasonal operations) on or 
                before the date of enactment of this Act;
            (2) a list for each State, as applicable, that describes--
                    (A) the size and weight limitations applicable to 
                each segment of the National Highway System in that 
                State as listed under paragraph (1);
                    (B) each combination that exceeds the Interstate 
                weight limit, but that the Department of Transportation, 
                other Federal agency, or a State agency has determined 
                on or before the date of enactment of this Act, could be 
                or could have been lawfully operated in the State; and
                    (C) each combination that exceeds the Interstate 
                weight limit, but that the Secretary determines could 
                have been lawfully operated on a non-Interstate segment 
                of the National Highway System in the State on or before 
                the date of enactment of this Act; and
            (3) a list of each State law that designates or allows 
        designation of size and weight limitations in excess of Federal 
        law and regulations on routes of the National Highway System, 
        including nondivisible loads.

    (b) Specifications.--The Secretary, in consultation with the States, 
shall specify whether the determinations under paragraphs

[[Page 126 STAT. 818]]

(1) and (2) of subsection (a) were made by the Department of 
Transportation, other Federal agency, or a State agency.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit a final report of the compilation 
under subsection (a) to the Committee on Commerce, Science, and 
Transportation and the Committee on Environment and Public Works of the 
Senate and the Committee on Transportation and Infrastructure of the 
House of Representatives.

                        Subtitle I--Miscellaneous

                          PART I--MISCELLANEOUS

SEC. 32911. PROHIBITION OF COERCION.

    Section 31136(a) is amended by--
            (1) striking ``and'' at the end of paragraph (3);
            (2) striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) adding after subsection (4) the following:
            ``(5) an operator of a commercial motor vehicle is not 
        coerced by a motor carrier, shipper, receiver, or transportation 
        intermediary to operate a commercial motor vehicle in violation 
        of a regulation promulgated under this section, or chapter 51 or 
        chapter 313 of this title.''.
SEC. 32912. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.

    Section 4144(d) of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (49 U.S.C. 31100 note), is 
amended by striking ``June 30, 2012'' and inserting ``September 30, 
2013''.
SEC. 32913. WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS.

    (a) <<NOTE: Web posting.>> Exemption Standards.--Section 31315(b)(4) 
is amended--
            (1) in subparagraph (A), by inserting ``(or, in the case of 
        a request for an exemption from the physical qualification 
        standards for commercial motor vehicle drivers, post on a web 
        site established by the Secretary to implement the requirements 
        of section 31149)'' after ``Federal Register'';
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) Upon granting a request.-- <<NOTE: Federal 
                Register, publication.>> Upon granting a request and 
                before the effective date of the exemption, the 
                Secretary shall publish in the Federal Register (or, in 
                the case of an exemption from the physical qualification 
                standards for commercial motor vehicle drivers, post on 
                a web site established by the Secretary to implement the 
                requirements of section 31149) the name of the person 
                granted the exemption, the provisions from which the 
                person is exempt, the effective period, and the terms 
                and conditions of the exemption.''; and
            (3) in subparagraph (C), by inserting ``(or, in the case of 
        a request for an exemption from the physical qualification 
        standards for commercial motor vehicle drivers, post on a web 
        site established by the Secretary to implement the requirements 
        of section 31149)'' after ``Federal Register''.

    (b) Providing Notice of Exemptions to State Personnel.--Section 
31315(b)(7) is amended to read as follows:

[[Page 126 STAT. 819]]

            ``(7) Notification of state compliance and enforcement 
        personnel.--Before the effective date of an exemption, the 
        Secretary shall notify a State safety compliance and enforcement 
        agency, and require the agency to notify the State's roadside 
        inspectors, that a person will be operating pursuant to an 
        exemption and the terms and conditions that apply to the 
        exemption.''.

    (c) Pilot Programs.--Section 31315(c)(1) is amended by striking ``in 
the Federal Register''.
    (d) Report to Congress.--Section 31315 is amended by adding after 
subsection (d) the following:
    ``(e) Report to Congress.--The Secretary shall submit an annual 
report to the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure of the 
House of Representatives listing the waivers, exemptions, and pilot 
programs granted under this section, and any impacts on safety.
    ``(f) Web Site.--The Secretary shall ensure that the Federal Motor 
Carrier Safety Administration web site includes a link to the web site 
established by the Secretary to implement the requirements under 
sections 31149 and 31315. <<NOTE: Public information.>> The link shall 
be in a clear and conspicuous location on the home page of the Federal 
Motor Carrier Safety Administration web site and be easily accessible to 
the public.''.
SEC. 32914. REGISTRATION REQUIREMENTS.

    (a) Requirements for Registration.--Section 13901 is amended to read 
as follows:
``Sec. 13901. Requirements for registration

    ``(a) In General.--A person may provide transportation as a motor 
carrier subject to jurisdiction under subchapter I of chapter 135 or 
service as a freight forwarder subject to jurisdiction under subchapter 
III of such chapter, or service as a broker for transportation subject 
to jurisdiction under subchapter I of such chapter only if the person is 
registered under this chapter to provide such transportation or service.
    ``(b) Registration Numbers.--
            ``(1) In general.--If the Secretary registers a person under 
        this chapter to provide transportation or service, including as 
        a motor carrier, freight forwarder, or broker, the Secretary 
        shall issue a distinctive registration number to the person for 
        each such authority to provide transportation or service for 
        which the person is registered.
            ``(2) Transportation or service type indicator.--A number 
        issued under paragraph (1) shall include an indicator of the 
        type of transportation or service for which the registration 
        number is issued, including whether the registration number is 
        issued for registration of a motor carrier, freight forwarder, 
        or broker.

    ``(c) Specification of Authority.--For each agreement to provide 
transportation or service for which registration is required under this 
chapter, the registrant shall specify, in writing, the authority under 
which the person is providing such transportation or service.''.
    (b) Availability of Information.--

[[Page 126 STAT. 820]]

            (1) In general.--Chapter 139 is amended by adding at the end 
        the following:
``Sec. 13909. Availability of information

    ``The Secretary <<NOTE: Public information. Web posting.>> shall 
make information relating to registration and financial security 
required by this chapter publicly available on the Internet, including--
            ``(1) the names and business addresses of the principals of 
        each entity holding such registration;
            ``(2) the status of such registration; and
            ``(3) the electronic address of the entity's surety provider 
        for the submission of claims.''.
            (2) Conforming amendment.--The analysis for chapter 139 is 
        amended by adding at the end the following:

``13909. Availability of information.''.

SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS.

    Section 13902, as amended by sections 32101 and 32107(a) of this 
Act, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``using self-
                propelled vehicles the motor carrier owns, rents, or 
                leases'' after ``motor carrier''; and
                    (B) by adding at the end the following:
            ``(6) Separate registration required.--A motor carrier may 
        not broker transportation services unless the motor carrier has 
        registered as a broker under this chapter.''; and
            (2) by inserting after subsection (h) the following:

    ``(i) Registration as Freight Forwarder or Broker Required.--A motor 
carrier registered under this chapter--
            ``(1) may only provide transportation of property with--
                    ``(A) self-propelled motor vehicles owned or leased 
                by the motor carrier; or
                    ``(B) interchanges under regulations issued by the 
                Secretary if the originating carrier--
                          ``(i) physically transports the cargo at some 
                      point; and
                          ``(ii) retains liability for the cargo and for 
                      payment of interchanged carriers; and
            ``(2) may not arrange transportation described in paragraph 
        (1) unless the motor carrier has obtained a separate 
        registration as a freight forwarder or broker for transportation 
        under section 13903 or 13904, as applicable.''.
SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.

    (a) Registration of Freight Forwarders.--Section 13903, as amended 
by section 32107(b) of this Act, is amended--
            (1) in subsection (a)--
                    (A) by striking ``finds that the person is fit'' and 
                inserting the following: ``determines that the person--
            ``(1) has sufficient experience to qualify the person to act 
        as a freight forwarder; and
            ``(2) is fit''; and
                    (B) by striking ``and the Board'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively;

[[Page 126 STAT. 821]]

            (3) by inserting after subsection (a) the following:

    ``(b) Duration.--A registration issued under subsection (a) shall 
only remain in effect while the freight forwarder is in compliance with 
section 13906(c).
    ``(c) Experience or Training Requirement.--Each freight forwarder 
shall employ, as an officer, an individual who--
            ``(1) has at least 3 years of relevant experience; or
            ``(2) provides the Secretary with satisfactory evidence of 
        the individual's knowledge of related rules, regulations, and 
        industry practices.''; and
            (4) by amending subsection (d), as redesignated, to read as 
        follows:

    ``(d) Registration as Motor Carrier Required.--
            ``(1) In general.--A freight forwarder may not provide 
        transportation as a motor carrier unless the freight forwarder 
        has registered separately under this chapter to provide 
        transportation as a motor carrier.''.

    (b) Registration of Brokers.--Section 13904, as amended by section 
32107(c) of this Act, is amended--
            (1) in subsection (a), by striking ``finds that the person 
        is fit'' and inserting the following: ``determines that the 
        person--
            ``(1) has sufficient experience to qualify the person to act 
        as a broker for transportation; and
            ``(2) is fit'';
            (2) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (d), (e), (f), and (g) respectively;
            (3) by inserting after subsection (a) the following:

    ``(b) Duration.--A registration issued under subsection (a) shall 
only remain in effect while the broker for transportation is in 
compliance with section 13906(b).
    ``(c) Experience or Training Requirements.--Each broker shall 
employ, as an officer, an individual who--
            ``(1) has at least 3 years of relevant experience; or
            ``(2) provides the Secretary with satisfactory evidence of 
        the individual's knowledge of related rules, regulations, and 
        industry practices.'';
            (4) by amending subsection (d), as redesignated, to read as 
        follows:

    ``(d) Registration as Motor Carrier Required.--
            ``(1) In general.--A broker for transportation may not 
        provide transportation as a motor carrier unless the broker has 
        registered separately under this chapter to provide 
        transportation as a motor carrier.
            ``(2) Limitation.--This subsection does not apply to a motor 
        carrier registered under this chapter or to an employee or agent 
        of the motor carrier to the extent the transportation is to be 
        provided entirely by the motor carrier, with other registered 
        motor carriers, or with rail or water carriers.''; and
            (5) by amending subsection (e), as redesignated, to read as 
        follows:

    ``(e) Regulation to Protect Motor Carriers and Shippers.--
Regulations of the Secretary applicable to brokers registered under this 
section shall provide for the protection of motor carriers and shippers 
by motor vehicle.''.
SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION.

    Section 13905(c) is amended to read as follows:

[[Page 126 STAT. 822]]

    ``(c) Effective Period.--
            ``(1) In general.--Except as otherwise provided in this 
        part, each registration issued under section 13902, 13903, or 
        13904--
                    ``(A) shall be effective beginning on the date 
                specified by the Secretary; and
                    ``(B) shall remain in effect for such period as the 
                Secretary determines appropriate by regulation.
            ``(2) Reissuance of registration.--
                    ``(A) <<NOTE: Deadline.>>  Requirement.--Not later 
                than 4 years after the date of enactment of the 
                Commercial Motor Vehicle Safety Enhancement Act of 2012, 
                the Secretary shall require a freight forwarder or 
                broker to renew its registration issued under this 
                chapter.
                    ``(B) Effective period.--Each registration renewal 
                under subparagraph (A)--
                          ``(i) shall expire not later than 5 years 
                      after the date of such renewal; and
                          ``(ii) may be further renewed as provided 
                      under this chapter.''.
SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT FORWARDERS.

    (a) In General.--Section 13906 is amended by striking subsections 
(b) and (c) and inserting the following:
    ``(b) Broker Financial Security Requirements.--
            ``(1) Requirements.--
                    ``(A) In general.--The Secretary may register a 
                person as a broker under section 13904 only if the 
                person files with the Secretary a surety bond, proof of 
                trust fund, or other financial security, or a 
                combination thereof, in a form and amount, and from a 
                provider, determined by the Secretary to be adequate to 
                ensure financial responsibility.
                    ``(B) Use of a group surety bond, trust fund, or 
                other surety.--In implementing the standards established 
                by subparagraph (A), the Secretary may authorize the use 
                of a group surety bond, trust fund, or other financial 
                security, or a combination thereof, that meets the 
                requirements of this subsection.
                    ``(C) Proof of trust or other financial security.--
                For purposes of subparagraph (A), a trust fund or other 
                financial security may be acceptable to the Secretary 
                only if the trust fund or other financial security 
                consists of assets readily available to pay claims 
                without resort to personal guarantees or collection of 
                pledged accounts receivable.
            ``(2) Scope of financial responsibility.--
                    ``(A) Payment of claims.--A surety bond, trust fund, 
                or other financial security obtained under paragraph (1) 
                shall be available to pay any claim against a broker 
                arising from its failure to pay freight charges under 
                its contracts, agreements, or arrangements for 
                transportation subject to jurisdiction under chapter 135 
                if--
                          ``(i) subject to the review by the surety 
                      provider, the broker consents to the payment;

[[Page 126 STAT. 823]]

                          ``(ii) in any case in which the broker does 
                      not respond to adequate notice to address the 
                      validity of the claim, the surety provider 
                      determines that the claim is valid; or
                          ``(iii) the claim is not resolved within a 
                      reasonable period of time following a reasonable 
                      attempt by the claimant to resolve the claim under 
                      clauses (i) and (ii), and the claim is reduced to 
                      a judgment against the broker.
                    ``(B) Response of surety providers to claims.--If a 
                surety provider receives notice of a claim described in 
                subparagraph (A), the surety provider shall--
                          ``(i) <<NOTE: Deadline.>> respond to the claim 
                      on or before the 30th day following the date on 
                      which the notice was received; and
                          ``(ii) in the case of a denial, set forth in 
                      writing for the claimant the grounds for the 
                      denial.
                    ``(C) Costs and attorney's fees.--In any action 
                against a surety provider to recover on a claim 
                described in subparagraph (A), the prevailing party 
                shall be entitled to recover its reasonable costs and 
                attorney's fees.
            ``(3) Minimum financial security.--Each broker subject to 
        the requirements of this section shall provide financial 
        security of $75,000 for purposes of this subsection, regardless 
        of the number of branch offices or sales agents of the broker.
            ``(4) Cancellation notice.--If a financial security required 
        under this subsection is canceled--
                    ``(A) <<NOTE: Deadline.>> the holder of the 
                financial security shall provide electronic notification 
                to the Secretary of the cancellation not later than 30 
                days before the effective date of the cancellation; and
                    ``(B) <<NOTE: Web posting.>> the Secretary shall 
                immediately post such notification on the public 
                Internet Website of the Department of Transportation.
            ``(5) Suspension.--The Secretary shall immediately suspend 
        the registration of a broker issued under this chapter if the 
        available financial security of that person falls below the 
        amount required under this subsection.
            ``(6) Payment of claims in cases of financial failure or 
        insolvency.--If a broker registered under this chapter 
        experiences financial failure or insolvency, the surety provider 
        of the broker shall--
                    ``(A) <<NOTE: Notification. Public information. Time 
                period.>> submit a notice to cancel the financial 
                security to the Administrator in accordance with 
                paragraph (4);
                    ``(B) publicly advertise for claims for 60 days 
                beginning on the date of publication by the Secretary of 
                the notice to cancel the financial security; and
                    ``(C) pay, <<NOTE: Deadline.>> not later than 30 
                days after the expiration of the 60-day period for 
                submission of claims--
                          ``(i) all uncontested claims received during 
                      such period; or
                          ``(ii) a pro rata share of such claims if the 
                      total amount of such claims exceeds the financial 
                      security available.
            ``(7) Penalties.--
                    ``(A) Civil actions.--Either the Secretary or the 
                Attorney General of the United States may bring a civil

[[Page 126 STAT. 824]]

                action in an appropriate district court of the United 
                States to enforce the requirements of this subsection or 
                a regulation prescribed or order issued under this 
                subsection. The court may award appropriate relief, 
                including injunctive relief.
                    ``(B) Civil penalties.--If the Secretary determines, 
                after notice and opportunity for a hearing, that a 
                surety provider of a broker registered under this 
                chapter has violated the requirements of this subsection 
                or a regulation prescribed under this subsection, the 
                surety provider shall be liable to the United States for 
                a civil penalty in an amount not to exceed $10,000.
                    ``(C) Eligibility.--If the Secretary determines, 
                after notice and opportunity for a hearing, that a 
                surety provider of a broker registered under this 
                chapter has violated the requirements of this subsection 
                or a regulation prescribed under this subsection, the 
                surety provider shall be ineligible to provider broker 
                financial security for 3 years.
            ``(8) Deduction of costs prohibited.--The amount of the 
        financial security required under this subsection may not be 
        reduced by deducting attorney's fees or administrative costs.

    ``(c) Freight Forwarder Financial Security Requirements.--
            ``(1) Requirements.--
                    ``(A) In general.--The Secretary may register a 
                person as a freight forwarder under section 13903 only 
                if the person files with the Secretary a surety bond, 
                proof of trust fund, other financial security, or a 
                combination of such instruments, in a form and amount, 
                and from a provider, determined by the Secretary to be 
                adequate to ensure financial responsibility.
                    ``(B) Use of a group surety bond, trust fund, or 
                other financial security.--In implementing the standards 
                established under subparagraph (A), the Secretary may 
                authorize the use of a group surety bond, trust fund, 
                other financial security, or a combination of such 
                instruments, that meets the requirements of this 
                subsection.
                    ``(C) Surety bonds.--A surety bond obtained under 
                this section may only be obtained from a bonding company 
                that has been approved by the Secretary of the Treasury.
                    ``(D) Proof of trust or other financial security.--
                For purposes of subparagraph (A), a trust fund or other 
                financial security may not be accepted by the Secretary 
                unless the trust fund or other financial security 
                consists of assets readily available to pay claims 
                without resort to personal guarantees or collection of 
                pledged accounts receivable.
            ``(2) Scope of financial responsibility.--
                    ``(A) Payment of claims.--A surety bond, trust fund, 
                or other financial security obtained under paragraph (1) 
                shall be available to pay any claim against a freight 
                forwarder arising from its failure to pay freight 
                charges under its contracts, agreements, or arrangements 
                for transportation subject to jurisdiction under chapter 
                135 if--
                          ``(i) subject to the review by the surety 
                      provider, the freight forwarder consents to the 
                      payment;

[[Page 126 STAT. 825]]

                          ``(ii) in the case the freight forwarder does 
                      not respond to adequate notice to address the 
                      validity of the claim, the surety provider 
                      determines the claim is valid; or
                          ``(iii) the claim--
                                    ``(I) is not resolved within a 
                                reasonable period of time following a 
                                reasonable attempt by the claimant to 
                                resolve the claim under clauses (i) and 
                                (ii); and
                                    ``(II) is reduced to a judgment 
                                against the freight forwarder.
                    ``(B) <<NOTE: Notice.>>  Response of surety 
                providers to claims.--If a surety provider receives 
                notice of a claim described in subparagraph (A), the 
                surety provider shall--
                          ``(i) <<NOTE: Deadline.>>  respond to the 
                      claim on or before the 30th day following receipt 
                      of the notice; and
                          ``(ii) in the case of a denial, set forth in 
                      writing for the claimant the grounds for the 
                      denial.
                    ``(C) Costs and attorney's fees.--In any action 
                against a surety provider to recover on a claim 
                described in subparagraph (A), the prevailing party 
                shall be entitled to recover its reasonable costs and 
                attorney's fees.
            ``(3) Freight forwarder insurance.--
                    ``(A) In general.--The Secretary may register a 
                person as a freight forwarder under section 13903 only 
                if the person files with the Secretary a surety bond, 
                insurance policy, or other type of financial security 
                that meets standards prescribed by the Secretary.
                    ``(B) Liability insurance.--A financial security 
                filed by a freight forwarder under subparagraph (A) 
                shall be sufficient to pay an amount, not to exceed the 
                amount of the financial security, for each final 
                judgment against the freight forwarder for bodily injury 
                to, or death of, an individual, or loss of, or damage 
                to, property (other than property referred to in 
                subparagraph (C)), resulting from the negligent 
                operation, maintenance, or use of motor vehicles by, or 
                under the direction and control of, the freight 
                forwarder while providing transfer, collection, or 
                delivery service under this part.
                    ``(C) Cargo insurance.--The Secretary may require a 
                registered freight forwarder to file with the Secretary 
                a surety bond, insurance policy, or other type of 
                financial security approved by the Secretary, that will 
                pay an amount, not to exceed the amount of the financial 
                security, for loss of, or damage to, property for which 
                the freight forwarder provides service.
            ``(4) Minimum financial security.--Each freight forwarder 
        subject to the requirements of this section shall provide 
        financial security of $75,000, regardless of the number of 
        branch offices or sales agents of the freight forwarder.
            ``(5) Cancellation notice.--If a financial security required 
        under this subsection is canceled--
                    ``(A) <<NOTE: Deadline.>>  the holder of the 
                financial security shall provide electronic notification 
                to the Secretary of the cancellation not later than 30 
                days before the effective date of the cancellation; and

[[Page 126 STAT. 826]]

                    ``(B) <<NOTE: Web posting.>>  the Secretary shall 
                immediately post such notification on the public 
                Internet web site of the Department of Transportation.
            ``(6) Suspension.--The Secretary shall immediately suspend 
        the registration of a freight forwarder issued under this 
        chapter if its available financial security falls below the 
        amount required under this subsection.
            ``(7) Payment of claims in cases of financial failure or 
        insolvency.--If a freight forwarder registered under this 
        chapter experiences financial failure or insolvency, the surety 
        provider of the freight forwarder shall--
                    ``(A) <<NOTE: Notice.>>  submit a notice to cancel 
                the financial security to the Administrator in 
                accordance with paragraph (5);
                    ``(B) <<NOTE: Public information. Time period.>>  
                publicly advertise for claims for 60 days beginning on 
                the date of publication by the Secretary of the notice 
                to cancel the financial security; and
                    ``(C) <<NOTE: Deadline.>>  pay, not later than 30 
                days after the expiration of the 60-day period for 
                submission of claims--
                          ``(i) all uncontested claims received during 
                      such period; or
                          ``(ii) a pro rata share of such claims if the 
                      total amount of such claims exceeds the financial 
                      security available.
            ``(8) Penalties.--
                    ``(A) Civil actions.--Either the Secretary or the 
                Attorney General may bring a civil action in an 
                appropriate district court of the United States to 
                enforce the requirements of this subsection or a 
                regulation prescribed or order issued under this 
                subsection. The court may award appropriate relief, 
                including injunctive relief.
                    ``(B) Civil penalties.--If the Secretary determines, 
                after notice and opportunity for a hearing, that a 
                surety provider of a freight forwarder registered under 
                this chapter has violated the requirements of this 
                subsection or a regulation prescribed under this 
                subsection, the surety provider shall be liable to the 
                United States for a civil penalty in an amount not to 
                exceed $10,000.
                    ``(C) Eligibility.--If the Secretary determines, 
                after notice and opportunity for a hearing, that a 
                surety provider of a freight forwarder registered under 
                this chapter has violated the requirements of this 
                subsection or a regulation prescribed under this 
                subsection, the surety provider shall be ineligible to 
                provide freight forwarder financial security for 3 years
            ``(9) Deduction of costs prohibited.--The amount of the 
        financial security required under this subsection may not be 
        reduced by deducting attorney's fees or administrative costs.''.

    (b) <<NOTE: Deadline. 49 USC 13906 note.>>  Rulemaking.--Not later 
than 1 year after the date of enactment of this Act, the Secretary shall 
issue regulations to implement and enforce the requirements under 
subsections (b) and (c) of section 13906 of title 49, United States 
Code, as amended by subsection (a).

    (c) <<NOTE: 49 USC 13906 note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on the date that is 1 year 
after the date of enactment of this Act.

[[Page 126 STAT. 827]]

SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES.

    (a) In General.--Chapter 149 is amended by adding at the end the 
following:
``SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES.

    ``(a) Prohibited Activities.--A person may provide interstate 
brokerage services as a broker only if that person--
            ``(1) is registered under, and in compliance with, section 
        13904; and
            ``(2) has satisfied the financial security requirements 
        under section 13906.

    ``(b) Exceptions.--Subsection (a) shall not apply to--
            ``(1) a non-vessel-operating common carrier (as defined in 
        section 40102 of title 46) or an ocean freight forwarder (as 
        defined in section 40102 of title 46) when arranging for inland 
        transportation as part of an international through movement 
        involving ocean transportation between the United States and a 
        foreign port;
            ``(2) a customs broker licensed in accordance with section 
        111.2 of title 19, Code of Federal Regulations, only to the 
        extent that the customs broker is engaging in a movement under a 
        customs bond or in a transaction involving customs business, as 
        defined by section 111.1 of title 19, Code of Federal 
        Regulations; or
            ``(3) an indirect air carrier holding a Standard Security 
        Program approved by the Transportation Security Administration, 
        only to the extent that the indirect air carrier is engaging in 
        the activities as an air carrier as defined in section 40102(2) 
        or in the activities defined in section 40102(3).

    ``(c) Civil Penalties and Private Cause of Action.--Any person who 
knowingly authorizes, consents to, or permits, directly or indirectly, 
either alone or in conjunction with any other person, a violation of 
subsection (a) is liable--
            ``(1) to the United States Government for a civil penalty in 
        an amount not to exceed $10,000 for each violation; and
            ``(2) to the injured party for all valid claims incurred 
        without regard to amount.

    ``(d) <<NOTE: Applicability.>> Liable Parties.--The liability for 
civil penalties and for claims under this section for unauthorized 
brokering shall apply, jointly and severally--
            ``(1) to any corporate entity or partnership involved; and
            ``(2) to the individual officers, directors, and principals 
        of such entities.''.

    (b) Clerical Amendment.--The analysis for chapter 149 is amended by 
adding at the end the following:

``14916. Unlawful brokerage activities.''.

                 PART II--HOUSEHOLD GOODS TRANSPORTATION

SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR HOUSEHOLD 
                            GOODS MOTOR CARRIERS.

    (a) Section 13902(a)(2) is amended--
            (1) in subparagraph (B), by striking ``section 13702(c);'' 
        and inserting ``section 13702(c); and'';
            (2) by amending subparagraph (C) to read as follows:

[[Page 126 STAT. 828]]

                    ``(C) demonstrates, before being registered, through 
                successful completion of a proficiency examination 
                established by the Secretary, knowledge and intent to 
                comply with applicable Federal laws relating to consumer 
                protection, estimating, consumers' rights and 
                responsibilities, and options for limitations of 
                liability for loss and damage.''; and
            (3) by striking subparagraph (D).

    (b) Compliance Reviews of New Household Goods Motor Carriers.--
Section 31144(g), as amended by section 32102 of this Act, is amended by 
adding at the end the following:
            ``(6) Additional requirements for household goods motor 
        carriers.-- <<NOTE: Regulations. Review. Deadline.>> (A) In 
        addition to the requirements of this subsection, the Secretary 
        shall require, by regulation, each registered household goods 
        motor carrier to undergo a consumer protection standards review 
        not later than 18 months after the household goods motor carrier 
        begins operations under such authority.
                    ``(B) Elements.--In the regulations issued pursuant 
                to subparagraph (A), the Secretary shall establish the 
                elements of the consumer protections standards review, 
                including basic management controls. In establishing the 
                elements, the Secretary shall consider the effects on 
                small businesses and shall consider establishing 
                alternate locations where such reviews may be conducted 
                for the convenience of small businesses.''.

    (c) <<NOTE: 49 USC 13902 note.>> Effective Date.--The amendments 
made by this section shall take effect 2 years after the date of 
enactment of this Act.
SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS.

    (a) Injunctive Relief.--Section 14704(a)(1) is amended by striking 
``and 14103'' and inserting ``, 14103, and 14915(c)''.
    (b) Civil Penalties.--Section 14915(a)(1) is amended by adding at 
the end the following:
    ``The United States may assign all or a portion of the civil penalty 
to an aggrieved shipper. <<NOTE: Criteria.>> The Secretary of 
Transportation shall establish criteria upon which such assignments 
shall be made. The Secretary may order, after notice and an opportunity 
for a proceeding, that a person found holding a household goods shipment 
hostage return the goods to an aggrieved shipper.''.
SEC. 32923. SETTLEMENT AUTHORITY.

    (a) Settlement of General Civil Penalties.--Section 14901 is amended 
by adding at the end the following:
    ``(h) Settlement of Household Goods Civil Penalties.--Nothing in 
this section shall be construed to prohibit the Secretary from accepting 
partial payment of a civil penalty as part of a settlement agreement in 
the public interest, or from holding imposition of any part of a civil 
penalty in abeyance.''.
    (b) Settlement of Household Goods Civil Penalties.--Section 14915(a) 
is amended by adding at the end the following:
            ``(4) Settlement authority.--Nothing in this section shall 
        be construed as prohibiting the Secretary from accepting partial 
        payment of a civil penalty as part of a settlement agreement in 
        the public interest, or from holding imposition of any part of a 
        civil penalty in abeyance.''.

[[Page 126 STAT. 829]]

                     PART III--TECHNICAL AMENDMENTS

SEC. 32931. UPDATE OF OBSOLETE TEXT.

    (a) Section 31137(g), as redesignated by section 32301 of this Act, 
is amended by striking ``Not later than December 1, 1990, the Secretary 
shall prescribe'' and inserting ``The Secretary shall maintain''.
    (b) Section 31151(a) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) In general.--The Secretary of Transportation shall 
        maintain a program to ensure that intermodal equipment used to 
        transport intermodal containers is safe and systematically 
        maintained.''; and
            (2) by striking paragraph (4).

    (c) Section 31307(b) is amended by striking ``Not later than 
December 18, 1994, the Secretary shall prescribe'' and inserting ``The 
Secretary shall maintain''.
    (d) Section 31310(g)(1) is amended by striking ``Not later than 1 
year after the date of enactment of this Act, the'' and inserting 
``The''.
SEC. 32932. CORRECTION OF INTERSTATE COMMERCE COMMISSION 
                            REFERENCES.

    (a) Safety Information and Intervention in Interstate Commerce 
Commission Proceedings.--Chapter 3 is amended--
            (1) <<NOTE: Repeal.>> by repealing section 307;
            (2) in the analysis, by striking the item relating to 
        section 307;
            (3) in section 333(d)(1)(C), by striking ``Interstate 
        Commerce Commission'' and inserting ``Surface Transportation 
        Board''; and
            (4) in section 333(e)--
                    (A) by striking ``Interstate Commerce Commission'' 
                and inserting ``Surface Transportation Board''; and
                    (B) by striking ``Commission'' and inserting 
                ``Board''.

    (b) Filing and Procedure for Application to Abandon or 
Discontinue.--Section 10903(b)(2) is amended by striking ``24706(c) of 
this title'' and inserting ``24706(c) of this title before May 31, 
1998''.
    (c) Technical Amendments to Part C of Subtitle V.--
            (1) Section 24307(b)(3) is amended by striking ``Interstate 
        Commerce Commission'' and inserting ``Surface Transportation 
        Board''.
            (2) Section 24311 is amended--
                    (A) by striking ``Interstate Commerce Commission'' 
                and inserting ``Surface Transportation Board'';
                    (B) by striking ``Commission'' each place it appears 
                and inserting ``Board''; and
                    (C) by striking ``Commission's'' and inserting 
                ``Board's''.
            (3) Section 24902 is amended--
                    (A) by striking ``Interstate Commerce Commission'' 
                each place it appears and inserting ``Surface 
                Transportation Board''; and
                    (B) by striking ``Commission'' each place it appears 
                and inserting ``Board''.
            (4) Section 24904 is amended--

[[Page 126 STAT. 830]]

                    (A) by striking ``Interstate Commerce Commission'' 
                and inserting ``Surface Transportation Board''; and
                    (B) by striking ``Commission'' each place it appears 
                and inserting ``Board''.
SEC. 32933. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 13905(f)(1)(A) is amended by striking ``section 
13904(c)'' and inserting ``section 13904(e)'';
    (b) Section 14504a(c)(1) is amended--
            (1) in subparagraph (C), by striking ``sections'' and 
        inserting ``section''; and
            (2) in subparagraph (D)(ii)(II) by striking the period at 
        the end and inserting ``; and''.

    (c) Section 31103(a) is amended by striking ``section 
31102(b)(1)(E)'' and inserting ``section 31102(b)(2)(E)''.
    (d) Section 31103(b) is amended by striking ``authorized by section 
31104(f)(2)''.
    (e) Section 31309(b)(2) is amended by striking ``31308(2)'' and 
inserting ``31308(3)''.
SEC. 32934. <<NOTE: 49 USC 31136 note.>> EXEMPTIONS FROM 
                            REQUIREMENTS FOR COVERED FARM 
                            VEHICLES.

    (a) Federal Requirements.--A covered farm vehicle, including the 
individual operating that vehicle, shall be exempt from the following:
            (1) Any requirement relating to commercial driver's licenses 
        established under chapter 313 of title 49, United States Code.
            (2) Any requirement relating to drug-testing established 
        under chapter 313 of title 49, United States Code.
            (3) Any requirement relating to medical certificates 
        established under--
                    (A) subchapter III of chapter 311 of title 49, 
                United States Code; or
                    (B) chapter 313 of title 49, United States Code.
            (4) Any requirement relating to hours of service established 
        under--
                    (A) subchapter III of chapter 311 of title 49, 
                United States Code; or
                    (B) chapter 315 of title 49, United States Code.
            (5) Any requirement relating to vehicle inspection, repair, 
        and maintenance established under--
                    (A) subchapter III of chapter 311 of title 49, 
                United States Code; or
                    (B) chapter 315 of title 49, United States Code.

    (b) State Requirements.--
            (1) In general.--Federal transportation funding to a State 
        may not be terminated, limited, or otherwise interfered with as 
        a result of the State exempting a covered farm vehicle, 
        including the individual operating that vehicle, from any State 
        requirement relating to the operation of that vehicle.
            (2) Exception.--Paragraph (1) does not apply with respect to 
        a covered farm vehicle transporting hazardous materials that 
        require a placard.

    (c) Covered Farm Vehicle Defined.--
            (1) In general.--In this section, the term ``covered farm 
        vehicle'' means a motor vehicle (including an articulated motor 
        vehicle)--
                    (A) that--

[[Page 126 STAT. 831]]

                          (i) is traveling in the State in which the 
                      vehicle is registered or another State;
                          (ii) is operated by--
                                    (I) a farm owner or operator;
                                    (II) a ranch owner or operator; or
                                    (III) an employee or family member 
                                of an individual specified in subclause 
                                (I) or (II);
                          (iii) is transporting to or from a farm or 
                      ranch--
                                    (I) agricultural commodities;
                                    (II) livestock; or
                                    (III) machinery or supplies;
                          (iv) except as provided in paragraph (2), is 
                      not used in the operations of a for-hire motor 
                      carrier; and
                          (v) is equipped with a special license plate 
                      or other designation by the State in which the 
                      vehicle is registered to allow for identification 
                      of the vehicle as a farm vehicle by law 
                      enforcement personnel; and
                    (B) that has a gross vehicle weight rating or gross 
                vehicle weight, whichever is greater, that is--
                          (i) 26,001 pounds or less; or
                          (ii) greater than 26,001 pounds and traveling 
                      within the State or within 150 air miles of the 
                      farm or ranch with respect to which the vehicle is 
                      being operated.
            (2) Inclusion.--In this section, the term ``covered farm 
        vehicle'' includes a motor vehicle that meets the requirements 
        of paragraph (1) (other than paragraph (1)(A)(iv)) and--
                    (A) is operated pursuant to a crop share farm lease 
                agreement;
                    (B) is owned by a tenant with respect to that 
                agreement; and
                    (C) is transporting the landlord's portion of the 
                crops under that agreement.

    (d) Safety Study.--The Secretary of Transportation shall conduct a 
study of the exemption required by subsection (a) as follows:
            (1) Data and analysis of covered farm vehicles shall 
        include--
                    (A) the number of vehicles that are operated subject 
                to each of the regulatory exemptions permitted under 
                subsection (a);
                    (B) the number of drivers that operate covered farm 
                vehicles subject to each of the regulatory exemptions 
                permitted under subsection (a);
                    (C) the number of crashes involving covered farm 
                vehicles;
                    (D) the number of occupants and non-occupants 
                injured in crashes involving covered farm vehicles;
                    (E) the number of fatalities of occupants and non-
                occupants killed in crashes involving farm vehicles;
                    (F) crash investigations and accident reconstruction 
                investigations of all fatalities in crashes involving 
                covered farm vehicles;
                    (G) overall operating mileage of covered farm 
                vehicles;
                    (H) numbers of covered farm vehicles that operate in 
                neighboring States; and
                    (I) any other data the Secretary deems necessary to 
                analyze and include.

[[Page 126 STAT. 832]]

            (2) <<NOTE: Lists.>> A listing of State regulations issued 
        and maintained in each State that are identical to the Federal 
        regulations that are subject to exemption in subsection (a).
            (3) <<NOTE: Reports. Deadline.>> The Secretary shall report 
        the findings of the study to the appropriate committees of 
        Congress not later than 18 months after the date of enactment of 
        this Act.

    (e) Construction.--Nothing in this section shall be construed as 
authority for the Secretary of Transportation to prescribe regulations.

     TITLE III-- <<NOTE: Hazardous Materials Transportation Safety 
  Improvement Act of 2012.>> HAZARDOUS MATERIALS TRANSPORTATION SAFETY 
IMPROVEMENT ACT OF 2012
SEC. 33001. <<NOTE: 49 USC 5101 note.>> SHORT TITLE.

    This title may be cited as the ``Hazardous Materials Transportation 
Safety Improvement Act of 2012''.
SEC. 33002. <<NOTE: 49 USC 5101 note.>> DEFINITION.

    In this title, the term ``Secretary'' means the Secretary of 
Transportation.
SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 49, United States Code.
SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS.

    (a) Training Curriculum.--Section 5115 is amended--
            (1) in subsection (b)(1)(B), by striking ``basic'';
            (2) in subsection (b)(2), by striking ``basic''; and
            (3) in subsection (c), by striking ``basic''.

    (b) Operations Level Training.--Section 5116 is amended--
            (1) in subsection (b)(1), by adding at the end the 
        following: ``To the <<NOTE: Certification.>> extent that a grant 
        is used to train emergency responders, the State or Indian tribe 
        shall provide written certification to the Secretary that the 
        emergency responders who receive training under the grant will 
        have the ability to protect nearby persons, property, and the 
        environment from the effects of accidents or incidents involving 
        the transportation of hazardous material in accordance with 
        existing regulations or National Fire Protection Association 
        standards for competence of responders to accidents and 
        incidents involving hazardous materials.'';
            (2) in subsection (j)--
                    (A) in paragraph (1), by striking ``funds'' and all 
                that follows through ``fighting fires for'' and 
                inserting ``funds and through a competitive process, 
                make a grant or make grants to national nonprofit fire 
                service organizations for'';
                    (B) in paragraph (3)(A), by striking ``train'' and 
                inserting ``provide training, including portable 
                training, for'';
                    (C) in paragraph (4)--

[[Page 126 STAT. 833]]

                          (i) by striking ``train'' and inserting 
                      ``provide training, including portable training, 
                      for''; and
                          (ii) by inserting ``comply with Federal 
                      regulations and national consensus standards for 
                      hazardous materials response and'' after 
                      ``training course shall'';
                    (D) by redesignating paragraph (5) as paragraph (8); 
                and
                    (E) by inserting after paragraph (4) the following:
            ``(5) The Secretary may not award a grant to an organization 
        under this subsection unless the organization ensures that 
        emergency responders who receive training under the grant will 
        have the ability to protect nearby persons, property, and the 
        environment from the effects of accidents or incidents involving 
        the transportation of hazardous material in accordance with 
        existing regulations or National Fire Protection Association 
        standards for competence of responders to accidents and 
        incidents involving hazardous materials.
            ``(6) Notwithstanding paragraphs (1) and (3), to the extent 
        determined appropriate by the Secretary, a grant awarded by the 
        Secretary to an organization under this subsection to conduct 
        hazardous material response training programs may be used to 
        train individuals with responsibility to respond to accidents 
        and incidents involving hazardous material.
            ``(7) <<NOTE: Definition.>> For the purposes of this 
        subsection, the term `portable training' means live, instructor-
        led training provided by certified fire service instructors that 
        can be offered in any suitable setting, rather than specific 
        designated facilities. Under this training delivery model, 
        instructors travel to locations convenient to students and 
        utilize local facilities and resources.''; and
            (3) in subsection (k)--
                    (A) by striking ``annually'' and inserting ``an 
                annual report'';
                    (B) by inserting ``the report'' after ``make 
                available'';
                    (C) by striking ``information'' and inserting ``. 
                The report submitted under this subsection shall include 
                information''; and
                    (D) by striking ``The report shall identify'' and 
                all that follows and inserting the following: ``The 
                report submitted under this subsection shall identify 
                the ultimate recipients of such grants and include--
                    ``(A) a detailed accounting and description of each 
                grant expenditure by each grant recipient, including the 
                amount of, and purpose for, each expenditure;
                    ``(B) the number of persons trained under the grant 
                program, by training level;
                    ``(C) an evaluation of the efficacy of such planning 
                and training programs; and
                    ``(D) any recommendations the Secretary may have for 
                improving such grant programs.''.
SEC. 33005. <<NOTE: 49 USC 5121 note.>>  PAPERLESS HAZARD 
                            COMMUNICATIONS PILOT PROGRAM.

    (a) In General.--The Secretary may conduct pilot projects to 
evaluate the feasibility and effectiveness of using paperless hazard 
communications systems. <<NOTE: Urban and rural areas.>> At least 1 of 
the pilot projects under this section shall take place in a rural area.

    (b) Requirements.--In conducting pilot projects under this section, 
the Secretary--

[[Page 126 STAT. 834]]

            (1) may not waive the requirements under section 5110 of 
        title 49, United States Code; and
            (2) <<NOTE: Consultation.>> shall consult with organizations 
        representing--
                    (A) fire services personnel;
                    (B) law enforcement and other appropriate 
                enforcement personnel;
                    (C) other emergency response providers;
                    (D) persons who offer hazardous material for 
                transportation;
                    (E) persons who transport hazardous material by air, 
                highway, rail, and water; and
                    (F) employees of persons who transport or offer for 
                transportation hazardous material by air, highway, rail, 
                and water.

    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall--
            (1) prepare a report on the results of the pilot projects 
        carried out under this section, including--
                    (A) a detailed description of the pilot projects;
                    (B) an evaluation of each pilot project, including 
                an evaluation of the performance of each paperless 
                hazard communications system in such project;
                    (C) an assessment of the safety and security impact 
                of using paperless hazard communications systems, 
                including any impact on the public, emergency response, 
                law enforcement, and the conduct of inspections and 
                investigations;
                    (D) an analysis of the associated benefits and costs 
                of using the paperless hazard communications systems for 
                each mode of transportation; and
                    (E) a recommendation that incorporates the 
                information gathered in subparagraphs (A), (B), (C), and 
                (D) on whether paperless hazard communications systems 
                should be permanently incorporated into the Federal 
                hazardous material transportation safety program under 
                chapter 51 of title 49, United States Code; and
            (2) submit a final report to the Committee on Commerce, 
        Science, and Transportation of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives that contains the results of the pilot projects 
        carried out under this section, including the matters described 
        in paragraph (1).

    (d) Paperless Hazard Communications System Defined.--In this 
section, the term ``paperless hazard communications system'' means the 
use of advanced communications methods, such as wireless communications 
devices, to convey hazard information between all parties in the 
transportation chain, including emergency responders and law enforcement 
personnel. The format of communication may be equivalent to that used by 
the carrier.
SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND REPORTING.

    (a) Assessment.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Commandant of the United States Coast Guard, as appropriate, 
        shall conduct an assessment to improve the collection,

[[Page 126 STAT. 835]]

        analysis, reporting, and use of data related to accidents and 
        incidents involving the transportation of hazardous material.
            (2) Review.--The assessment conducted under this subsection 
        shall review the methods used by the Pipeline and Hazardous 
        Materials Safety Administration (referred to in this section as 
        the ``Administration'') for collecting, analyzing, and reporting 
        accidents and incidents involving the transportation of 
        hazardous material, including the adequacy of--
                    (A) information requested on the accident and 
                incident reporting forms required to be submitted to the 
                Administration;
                    (B) methods used by the Administration to verify 
                that the information provided on such forms is accurate 
                and complete;
                    (C) accident and incident reporting requirements, 
                including whether such requirements should be expanded 
                to include shippers and consignees of hazardous 
                materials;
                    (D) resources of the Administration related to data 
                collection, analysis, and reporting, including staff and 
                information technology; and
                    (E) the database used by the Administration for 
                recording and reporting such accidents and incidents, 
                including the ability of users to adequately search the 
                database and find information.

    (b) Development of Action Plan.--Not later than 9 months after the 
date of enactment of this Act, the Secretary shall develop an action 
plan and timeline for improving the collection, analysis, reporting, and 
use of data by the Administration, including revising the database of 
the Administration, as appropriate.
    (c) Submission to Congress.--Not later than 15 days after the 
completion of the action plan and timeline under subsection (c), the 
Secretary shall submit the action plan and timeline to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives.
    (d) Reporting Requirements.--Section 5125(b)(1)(D) is amended by 
inserting ``and other written hazardous materials transportation 
incident reporting involving State or local emergency responders in the 
initial response to the incident'' before the period at the end.
SEC. 33007. HAZARDOUS MATERIAL TECHNICAL ASSESSMENT, RESEARCH AND 
                            DEVELOPMENT, AND ANALYSIS PROGRAM.

    (a) In General.--Chapter 51 is amended by inserting after section 
5117 the following:
``Sec. 5118. Hazardous material technical assessment, research and 
                  development, and analysis program

    ``(a) Risk Reduction.--
            ``(1) Program authorized.--The Secretary of Transportation 
        may develop and implement a hazardous material technical 
        assessment, research and development, and analysis program for 
        the purpose of--
                    ``(A) reducing the risks associated with the 
                transportation of hazardous material; and

[[Page 126 STAT. 836]]

                    ``(B) identifying and evaluating new technologies to 
                facilitate the safe, secure, and efficient 
                transportation of hazardous material.
            ``(2) Coordination.--In developing the program under 
        paragraph (1), the Secretary shall--
                    ``(A) utilize information gathered from other modal 
                administrations with similar programs; and
                    ``(B) coordinate with other modal administrations, 
                as appropriate.

    ``(b) Cooperation.--In carrying out subsection (a), the Secretary 
shall work cooperatively with regulated and other entities, including 
shippers, carriers, emergency responders, State and local officials, and 
academic institutions.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 51 is 
amended by inserting after the item relating to section 5117 the 
following:

``5118. Hazardous material technical assessment, research and 
           development, and analysis program.''.

SEC. 33008. <<NOTE: 49 USC 5121 note.>> HAZARDOUS MATERIAL 
                            ENFORCEMENT TRAINING.

    (a) <<NOTE: Deadline. Standards.>> In General.--Not later than 18 
months after the date of enactment of this Act, the Secretary shall 
develop uniform performance standards for training hazardous material 
inspectors and investigators on--
            (1) how to collect, analyze, and publish findings from 
        inspections and investigations of accidents or incidents 
        involving the transportation of hazardous material; and
            (2) how to identify noncompliance with regulations issued 
        under chapter 51 of title 49, United States Code, and take 
        appropriate enforcement action.

    (b) Standards and Guidelines.--The Secretary may develop--
            (1) guidelines for hazardous material inspector and 
        investigator qualifications;
            (2) best practices and standards for hazardous material 
        inspector and investigator training programs; and
            (3) standard protocols to coordinate investigation efforts 
        among Federal, State, and local jurisdictions on accidents or 
        incidents involving the transportation of hazardous material.

    (c) Availability.--The standards, protocols, and guidelines 
established under this section--
            (1) shall be mandatory for--
                    (A) the Department of Transportation's multimodal 
                personnel conducting hazardous material enforcement 
                inspections or investigations; and
                    (B) State employees who conduct federally funded 
                compliance reviews, inspections, or investigations; and
            (2) shall be made available to Federal, State, and local 
        hazardous material safety enforcement personnel.
SEC. 33009. INSPECTIONS.

    (a) Notice of Enforcement Measures.--Section 5121(c)(1) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:

[[Page 126 STAT. 837]]

                    ``(G) shall provide to the affected offeror, 
                carrier, packaging manufacturer or tester, or other 
                person responsible for the package reasonable notice 
                of--
                          ``(i) his or her decision to exercise his or 
                      her authority under paragraph (1);
                          ``(ii) any findings made; and
                          ``(iii) any actions being taken as a result of 
                      a finding of noncompliance.''.

    (b) Regulations.--
            (1) Matters to be addressed.--Section 5121(e) is amended by 
        adding at the end the following:
            ``(3) Matters to be addressed.--The regulations issued under 
        this subsection shall address--
                    ``(A) the safe and expeditious resumption of 
                transportation of perishable hazardous material, 
                including radiopharmaceuticals and other medical 
                products, that may require timely delivery due to life-
                threatening situations;
                    ``(B) the means by which--
                          ``(i) noncompliant packages that present an 
                      imminent hazard are placed out-of-service until 
                      the condition is corrected; and
                          ``(ii) noncompliant packages that do not 
                      present a hazard are moved to their final 
                      destination;
                    ``(C) appropriate training and equipment for 
                inspectors; and
                    ``(D) the proper closure of packaging in accordance 
                with the hazardous material regulations.''.
            (2) <<NOTE: Deadline. 49 USC 5121 note.>> Finalizing 
        regulations.--In accordance with section 5103(b)(2) of title 49, 
        United States Code, not later than 1 year after the date of 
        enactment of this Act, the Secretary shall take all actions 
        necessary to finalize a regulation under paragraph (1) of this 
        subsection.

    (c) Grants and Cooperative Agreements.--Section 5121(g)(1) is 
amended by inserting ``safety and'' before ``security''.
SEC. 33010. CIVIL PENALTIES.

    Section 5123 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``at least $250 but''; and
                          (ii) by striking ``$50,000'' and inserting 
                      ``$75,000'';
                    (B) in paragraph (2), by striking ``$100,000'' and 
                inserting ``$175,000''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) If the violation is related to training, a person 
        described in paragraph (1) shall be liable for a civil penalty 
        of at least $450.''; and
            (2) by adding at the end the following:

    ``(h) Penalty for Obstruction of Inspections and Investigations.--
            ``(1) The Secretary may impose a penalty on a person who 
        obstructs or prevents the Secretary from carrying out 
        inspections or investigations under subsection (c) or (i) of 
        section 5121.
            ``(2) <<NOTE: Definition.>> For the purposes of this 
        subsection, the term `obstructs' means actions that were known, 
        or reasonably should have been known, to prevent, hinder, or 
        impede an investigation.

[[Page 126 STAT. 838]]

    ``(i) Prohibition on Hazardous Material Operations After Nonpayment 
of Penalties.--
            ``(1) <<NOTE: Effective date.>> In general.--Except as 
        provided under paragraph (2), a person subject to the 
        jurisdiction of the Secretary under this chapter who fails to 
        pay a civil penalty assessed under this chapter, or fails to 
        arrange and abide by an acceptable payment plan for such civil 
        penalty, may not conduct any activity regulated under this 
        chapter beginning on the 91st day after the date specified by 
        order of the Secretary for payment of such penalty unless the 
        person has filed a formal administrative or judicial appeal of 
        the penalty.
            ``(2) Exception.--Paragraph (1) shall not apply to any 
        person who is unable to pay a civil penalty because such person 
        is a debtor in a case under chapter 11 of title 11.
            ``(3) <<NOTE: Deadline.>> Rulemaking.--Not later than 2 
        years after the date of enactment of this subsection, the 
        Secretary, after providing notice and an opportunity for public 
        comment, shall issue regulations that--
                    ``(A) <<NOTE: Procedures.>> set forth procedures to 
                require a person who is delinquent in paying civil 
                penalties to cease any activity regulated under this 
                chapter until payment has been made or an acceptable 
                payment plan has been arranged; and
                    ``(B) ensures that the person described in 
                subparagraph (A)--
                          ``(i) <<NOTE: Notification.>> is notified in 
                      writing; and
                          ``(ii) is given an opportunity to respond 
                      before the person is required to cease the 
                      activity.''.
SEC. 33011. REPORTING OF FEES.

    Section 5125(f)(2) is amended by striking ``, upon the Secretary's 
request,'' and inserting ``biennially''.
SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS.

    (a) <<NOTE: Deadlines. 49 USC 5117 note.>> Rulemaking.--Not later 
than 2 years after the date of enactment of this Act, the Secretary, 
after providing notice and an opportunity for public comment, shall 
issue regulations that establish--
            (1) standard operating procedures to support administration 
        of the special permit and approval programs; and
            (2) objective criteria to support the evaluation of special 
        permit and approval applications.

    (b) Review of Special Permits.--
            (1) <<NOTE: Time period.>> Review.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary shall 
        conduct a review and analysis of special permits that have been 
        in continuous effect for a 10-year period to determine which 
        special permits may be converted into the hazardous materials 
        regulations.
            (2) Factors.--In conducting the review and analysis under 
        paragraph (1), the Secretary may consider--
                    (A) the safety record for hazardous materials 
                transported under the special permit;
                    (B) the application of a special permit;
                    (C) the suitability of provisions in the special 
                permit for incorporation into the hazardous materials 
                regulations; and
                    (D) rulemaking activity in related areas.
            (3) <<NOTE: Notice. Public 
        comments. Determination.>> Rulemaking.--After completing the 
        review and analysis under paragraph (1), but not later than 3 
        years after the

[[Page 126 STAT. 839]]

        date of enactment of this Act, and after providing notice and 
        opportunity for public comment, the Secretary shall issue 
        regulations to incorporate into the hazardous materials 
        regulations any special permits identified in the review under 
        paragraph (1) that the Secretary determines are appropriate for 
        incorporation, based on the factors identified in paragraph (2).

    (c) Incorporation Into Regulation.--Section 5117 is amended by 
adding at the end the following:
    ``(f) Incorporation Into Regulations.--
            ``(1) <<NOTE: Deadline. Time period. Review. Analysis.>> In 
        general.--Not later than 1 year after the date on which a 
        special permit has been in continuous effect for a 10-year 
        period, the Secretary shall conduct a review and analysis of 
        that special permit to determine whether it may be converted 
        into the hazardous materials regulations.
            ``(2) Factors.--In conducting the review and analysis under 
        paragraph (1), the Secretary may consider--
                    ``(A) the safety record for hazardous materials 
                transported under the special permit;
                    ``(B) the application of a special permit;
                    ``(C) the suitability of provisions in the special 
                permit for incorporation into the hazardous materials 
                regulations; and
                    ``(D) rulemaking activity in related areas.
            ``(3) <<NOTE: Notice. Public comments. Federal Register, 
        publication.>> Rulemaking.--After completing the review and 
        analysis under paragraph (1) and after providing notice and 
        opportunity for public comment, the Secretary shall either 
        institute a rulemaking to incorporate the special permit into 
        the hazardous materials regulations or publish in the Federal 
        Register the Secretary's justification for why the special 
        permit is not appropriate for incorporation into the 
        regulations.''.
SEC. 33013. HIGHWAY ROUTING DISCLOSURES.

    (a) List of Route Designations.--Section 5112(c) is amended--
            (1) by striking ``In coordination'' and inserting the 
        following:
            ``(1) In general.--In coordination''; and
            (2) by adding at the end the following:
            ``(2) State responsibilities.--
                    ``(A) In general.--Each State shall submit to the 
                Secretary, in a form and manner to be determined by the 
                Secretary and in accordance with subparagraph (B)--
                          ``(i) the name of the State agency responsible 
                      for hazardous material highway route designations; 
                      and
                          ``(ii) a list of the State's currently 
                      effective hazardous material highway route 
                      designations.
                    ``(B) Frequency.--Each State shall submit the 
                information described in subparagraph (A)(ii)--
                          ``(i) <<NOTE: Time period.>> at least once 
                      every 2 years; and
                          ``(ii) <<NOTE: Deadline.>> not later than 60 
                      days after a hazardous material highway route 
                      designation is established, amended, or 
                      discontinued.''.

    (b) Compliance With Section 5112.--Section 5125(c)(1) is amended by 
inserting ``, and is published in the Department's hazardous materials 
route registry under section 5112(c)'' before the period at the end.

[[Page 126 STAT. 840]]

SEC. 33014. <<NOTE: Deadlines. 49 USC 5109 note.>> MOTOR CARRIER 
                            SAFETY PERMITS.

    (a) <<NOTE: Study. Reports.>> Review.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall conduct a study 
of, and transmit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a report on, the 
implementation of the hazardous material safety permit program under 
section 5109 of title 49, United States Code. In conducting the study, 
the Secretary shall review, at a minimum--
            (1) the list of hazardous materials requiring a safety 
        permit;
            (2) the number of permits that have been issued, denied, 
        revoked, or suspended since inception of the program and the 
        number of commercial motor carriers that have never had a permit 
        denied, revoked, or suspended since inception of the program;
            (3) the reasons for such denials, revocations, or 
        suspensions;
            (4) the criteria used by the Federal Motor Carrier Safety 
        Administration to determine whether a hazardous material safety 
        permit issued by a State is equivalent to the Federal permit; 
        and
            (5) actions the Secretary could implement to improve the 
        program, including whether to provide opportunities for an 
        additional level of fitness review prior to the denial, 
        revocation, or suspension of a safety permit.

    (b) Actions Taken.--Not later than 2 years after the date of 
enactment of this Act, based on the study conducted under subsection 
(a), the Secretary shall either institute a rulemaking to make any 
necessary improvements to the hazardous materials safety permit program 
under section 5109 of title 49, United States Code or publish in the 
Federal Register the Secretary's justification for why a rulemaking is 
not necessary.
SEC. 33015. <<NOTE: Deadlines.>> WETLINES.

    (a) Evaluation.--Not later than 1 year after the date of enactment 
of this Act, the United States Government Accountability Office shall 
evaluate, and transmit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives, a report on the safety 
of transporting flammable liquids in the external product piping of 
cargo tank motor vehicles (commonly referred to as wetlines). The 
evaluation shall--
            (1) review the safety of transporting flammable liquids in 
        the external product piping of cargo tank motor vehicles;
            (2) accurately quantify the number of incidents involving 
        the transportation of flammable liquids in external product 
        piping of cargo tank motor vehicles;
            (3) identify various alternatives to loading, transporting, 
        and unloading flammable liquids in such piping;
            (4) examine the costs and benefits of each alternative; and
            (5) identify any obstacles to implementing each alternative.

    (b) <<NOTE: Determination.>> Regulations.--The Secretary may not 
issue a final rule regarding transporting flammable liquids in the 
external product piping of cargo tank motor vehicles prior to completion 
of the evaluation conducted under subsection (a), or 2 years after the 
date of enactment of this Act, whichever is earlier, unless the 
Secretary determines that a risk to public safety, property, or

[[Page 126 STAT. 841]]

the environment is present or an imminent hazard (as defined in section 
5102 of title 49, United States Code) exists and that the regulations 
will address the risk or hazard.
SEC. 33016. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.

    Section 5107(e)(2) is amended--
            (1) by inserting ``through a competitive process'' between 
        ``made'' and ``to''; and
            (2) by striking ``hazmat employee''.
SEC. 33017. AUTHORIZATION OF APPROPRIATIONS.

    Section 5128 is amended to read as follows:
``Sec. 5128. Authorization of appropriations

    ``(a) In General.--There are authorized to be appropriated to the 
Secretary to carry out this chapter (except sections 5107(e), 
5108(g)(2), 5113, 5115, 5116, and 5119)--
            ``(1) $42,338,000 for fiscal year 2013; and
            ``(2) $42,762,000 for fiscal year 2014.

    ``(b) Hazardous Materials Emergency Preparedness Fund.--From the 
Hazardous Materials Emergency Preparedness Fund established under 
section 5116(i), the Secretary may expend, during each of fiscal years 
2013 and 2014--
            ``(1) $188,000 to carry out section 5115;
            ``(2) $21,800,000 to carry out subsections (a) and (b) of 
        section 5116, of which not less than $13,650,000 shall be 
        available to carry out section 5116(b);
            ``(3) $150,000 to carry out section 5116(f);
            ``(4) $625,000 to publish and distribute the Emergency 
        Response Guidebook under section 5116(i)(3); and
            ``(5) $1,000,000 to carry out section 5116(j).

    ``(c) Hazardous Materials Training Grants.--From the Hazardous 
Materials Emergency Preparedness Fund established pursuant to section 
5116(i), the Secretary may expend $4,000,000 for each of the fiscal 
years 2013 and 2014 to carry out section 5107(e).
    ``(d) Credits to Appropriations.--
            ``(1) Expenses.--In addition to amounts otherwise made 
        available to carry out this chapter, the Secretary may credit 
        amounts received from a State, Indian tribe, or other public 
        authority or private entity for expenses the Secretary incurs in 
        providing training to the State, authority, or entity.
            ``(2) Availability of amounts.--Amounts made available under 
        this section shall remain available until expended.''.

   TITLE IV-- <<NOTE: Sport Fish Restoration and Recreational Boating 
 Safety Act of 2012.>> SPORT FISH RESTORATION AND RECREATIONAL BOATING 
SAFETY ACT OF 2012
SEC. 34001. <<NOTE: 16 USC 777 note.>> SHORT TITLE.

    This title may be cited as the ``Sport Fish Restoration and 
Recreational Boating Safety Act of 2012''.

[[Page 126 STAT. 842]]

SEC. 34002. AMENDMENT OF FEDERAL AID IN SPORT FISH RESTORATION 
                            ACT.

    Section 4 of the Federal Aid in Fish Restoration Act (16 U.S.C. 
777c) is amended--
            (1) in subsection (a), by striking ``of fiscal years 2006 
        through 2011 and for the period beginning on October 1, 2011, 
        and ending on June 30, 2012,'' and inserting ``fiscal year 
        through 2014,''; and
            (2) in subsection (b)(1)(A), by striking ``of fiscal years 
        2006 through 2011 and for the period beginning on October 1, 
        2011, and ending on March 31, 2012,'' and inserting ``fiscal 
        year through 2014,''.

                         TITLE V--MISCELLANEOUS

SEC. 35001. <<NOTE: 49 USC 40128 note.>> OVERFLIGHTS IN GRAND 
                            CANYON NATIONAL PARK.

    (a) Determinations With Respect to Substantial Restoration of 
Natural Quiet and Experience.--
            (1) In general.--Notwithstanding any other provision of law, 
        for purposes of section 3(b)(1) of Public Law 100-91 (16 U.S.C. 
        1a-1 note), the substantial restoration of the natural quiet and 
        experience of the Grand Canyon National Park (in this section 
        referred to as the ``Park'') shall be considered to be achieved 
        in the Park if, for at least 75 percent of each day, 50 percent 
        of the Park is free of sound produced by commercial air tour 
        operations that have an allocation to conduct commercial air 
        tours in the Park as of the date of enactment of this Act.
            (2) Considerations.--
                    (A) In general.--For purposes of determining whether 
                substantial restoration of the natural quiet and 
                experience of the Park has been achieved in accordance 
                with paragraph (1), the Secretary of the Interior (in 
                this section referred to as the ``Secretary'') shall 
                use--
                          (i) the 2-zone system for the Park in effect 
                      on the date of enactment of this Act to assess 
                      impacts relating to substantial restoration of 
                      natural quiet at the Park, including--
                                    (I) the thresholds for noticeability 
                                and audibility; and
                                    (II) the distribution of land 
                                between the 2 zones; and
                          (ii) noise modeling science that is--
                                    (I) developed for use at the Park, 
                                specifically Integrated Noise Model 
                                Version 6.2;
                                    (II) validated by reasonable 
                                standards for conducting field 
                                observations of model results; and
                                    (III) accepted and validated by the 
                                Federal Interagency Committee on 
                                Aviation Noise.
                    (B) Sound from other sources.--The Secretary shall 
                not consider sound produced by sources other than 
                commercial air tour operations, including sound emitted 
                by other types of aircraft operations or other noise 
                sources, for purposes of--

[[Page 126 STAT. 843]]

                          (i) making recommendations, developing a final 
                      plan, or issuing regulations relating to 
                      commercial air tour operations in the Park; or
                          (ii) determining under paragraph (1) whether 
                      substantial restoration of the natural quiet and 
                      experience of the Park has been achieved.
            (3) Continued monitoring.--The Secretary shall continue 
        monitoring noise from aircraft operating over the Park below 
        17,999 feet MSL to ensure continued compliance with the 
        substantial restoration of natural quiet and experience of the 
        Park.
            (4) Day defined.--For purposes of this section, the term 
        ``day'' means the hours between 7:00 a.m. and 7:00 p.m.

    (b) <<NOTE: Deadlines.>> Conversion to Quiet Technology Aircraft.--
            (1) In general.--Not later than 15 years after the date of 
        enactment of this Act, all commercial air tour aircraft 
        operating in the Grand Canyon National Park Special Flight Rules 
        Area shall be required to fully convert to quiet aircraft 
        technology (as determined in accordance with regulations in 
        effect on the day before the date of enactment of this Act).
            (2) Conversion incentives.--Not later than 60 days after the 
        date of enactment of this Act, the Secretary and the 
        Administrator of the Federal Aviation Administration shall 
        provide incentives for commercial air tour operators that 
        convert to quiet aircraft technology (as determined in 
        accordance with the regulations in effect on the day before the 
        date of enactment of this Act) before the date specified in 
        paragraph (1), such as increasing the flight allocations for 
        such operators on a net basis consistent with section 804(c) of 
        the National Park Air Tours Management Act of 2000 (title VIII 
        of Public Law 106-181), provided that the cumulative impact of 
        such operations does not increase noise at Grand Canyon National 
        Park.
SEC. 35002. COMMERCIAL AIR TOUR OPERATIONS.

    Section 40128(b)(1)(C) of title 49, United States Code, is amended 
to read as follows:
                    ``(C) Exception.--An application to begin or expand 
                commercial air tour operations at Crater Lake National 
                Park or Great Smoky Mountains National Park may be 
                denied without the establishment of an air tour 
                management plan by the Director of the National Park 
                Service if the Director determines that such operations 
                would adversely affect park resources or visitor 
                experiences.''.
SEC. 35003. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS.

    Section 40125 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Search and Rescue Purposes.--An aircraft described in section 
40102(a)(41)(D) that is not exclusively leased for at least 90 
continuous days by the government of a State, the District of Columbia, 
or a territory or possession of the United States or a political 
subdivision of 1 of those governments, qualifies as a public aircraft if 
the Administrator determines that--
            ``(1) there are extraordinary circumstances;
            ``(2) the aircraft will be used for the performance of 
        search and rescue missions;
            ``(3) a community would not otherwise have access to search 
        and rescue services; and

[[Page 126 STAT. 844]]

            ``(4) a government entity demonstrates that granting the 
        waiver is necessary to prevent an undue economic burden on that 
        government.''.

  DIVISION D-- <<NOTE: Highway Investment, Job Creation, and Economic 
Growth Act of 2012.>> FINANCE
SEC. 40001. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

    This division may be cited as the ``Highway Investment, Job 
Creation, and Economic Growth Act of 2012''.

   TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                              RELATED TAXES

SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

    (a) Highway Trust Fund.--Section 9503 of the Internal Revenue Code 
of 1986 <<NOTE: 26 USC 9503.>> is amended--
            (1) by striking ``July 1, 2012'' in subsections (b)(6)(B), 
        (c)(1), and (e)(3) and inserting ``October 1, 2014'', and
            (2) by striking ``Surface Transportation Extension Act of 
        2012'' in subsections (c)(1) and (e)(3) and inserting ``MAP-
        21''.

    (b) Sport Fish Restoration and Boating Trust Fund.--Section 9504 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``Surface Transportation Extension Act of 
        2012'' each place it appears in subsection (b)(2) and inserting 
        ``MAP-21'', and
            (2) by striking ``July 1, 2012'' in subsection (d)(2) and 
        inserting ``October 1, 2014''.

    (c) Leaking Underground Storage Tank Trust Fund.--Paragraph (2) of 
section 9508(e) of the Internal Revenue Code of 1986 is amended by 
striking ``July 1, 2012'' and inserting ``October 1, 2014''.
    (d) <<NOTE: 26 USC 9503 note.>> Effective Date.--The amendments made 
by this section shall take effect on July 1, 2012.
SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.

    (a) In General.--
            (1) Each of the following provisions of the Internal Revenue 
        Code of 1986 is amended by striking ``June 30, 2012'' and 
        inserting ``September 30, 2016'':
                    (A) Section 4041(a)(1)(C)(iii)(I).
                    (B) Section 4041(m)(1)(B).
                    (C) Section 4081(d)(1).
            (2) Each of the following provisions of such Code is amended 
        by striking ``July 1, 2012'' and inserting ``October 1, 2016'':
                    (A) Section 4041(m)(1)(A).
                    (B) Section 4051(c).
                    (C) Section 4071(d).
                    (D) Section 4081(d)(3).

    (b) Extension of Tax, etc., on Use of Certain Heavy Vehicles.--
            (1) In general.--Each of the following provisions of the 
        Internal Revenue Code of 1986 is amended by striking ``2013'' 
        each place it appears and inserting ``2017'':

[[Page 126 STAT. 845]]

                    (A) <<NOTE: 26 USC 4481.>> Section 4481(f).
                    (B) Section 4482(d).
            (2) Extension and technical correction.--
                    (A) In general.--Paragraph (4) of section 4482(c) of 
                such Code is amended to read as follows:
            ``(4) <<NOTE: Definition.>> Taxable period.--The term 
        `taxable period' means any year beginning before July 1, 2017, 
        and the period which begins on July 1, 2017, and ends at the 
        close of September 30, 2017.''.
                    (B) <<NOTE: 26 USC 4482 note.>> Effective date.--The 
                amendment made by this paragraph shall take effect as if 
                included in the amendments made by section 142 of the 
                Surface Transportation Extension Act of 2011, Part II.

    (c) Floor Stocks Refunds.--Section 6412(a)(1) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``July 1, 2012'' each place it appears and 
        inserting ``October 1, 2016'',
            (2) by striking ``December 31, 2012'' each place it appears 
        and inserting ``March 31, 2017'', and
            (3) by striking ``October 1, 2012'' and inserting ``January 
        1, 2017''.

    (d) Extension of Certain Exemptions.--
            (1) Section 4221(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``July 1, 2012'' and inserting ``October 1, 
        2016''.
            (2) Section 4483(i) of such Code is amended by striking 
        ``July 1, 2012'' and inserting ``October 1, 2017''.

    (e) Extension of Transfers of Certain Taxes.--
            (1) In general.--Section 9503 of the Internal Revenue Code 
        of 1986 is amended--
                    (A) in subsection (b)--
                          (i) by striking ``July 1, 2012'' each place it 
                      appears in paragraphs (1) and (2) and inserting 
                      ``October 1, 2016'',
                          (ii) by striking ``July 1, 2012'' in the 
                      heading of paragraph (2) and inserting ``October 
                      1, 2016'',
                          (iii) by striking ``June 30, 2012'' in 
                      paragraph (2) and inserting ``September 30, 
                      2016'', and
                          (iv) by striking ``April 1, 2013'' in 
                      paragraph (2) and inserting ``July 1, 2017'', and
                    (B) in subsection (c)(2), by striking ``April 1, 
                2013'' and inserting ``July 1, 2017''.
            (2) Motorboat and small-engine fuel tax transfers.--
                    (A) In general.--Paragraphs (3)(A)(i) and (4)(A) of 
                section 9503(c) of such Code are each amended by 
                striking ``July 1, 2012'' and inserting ``October 1, 
                2016''.
                    (B) Conforming amendments to land and water 
                conservation fund.--Section 201(b) of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is 
                amended--
                          (i) by striking ``July 1, 2013'' each place it 
                      appears and inserting ``October 1, 2017'', and
                          (ii) by striking ``July 1, 2012'' and 
                      inserting ``October 1, 2016''.

    (f) <<NOTE: 16 USC 460l-11 note.>> Effective Date.--Except as 
otherwise provided in this section, the amendments made by this section 
shall take effect on July 1, 2012.

[[Page 126 STAT. 846]]

                      TITLE II--REVENUE PROVISIONS

         Subtitle A--Leaking Underground Storage Tank Trust Fund

SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK TRUST 
                            FUND TO HIGHWAY TRUST FUND.

    (a) In General.--Subsection (c) of section 9508 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 9508.>> is amended--
            (1) by striking ``Amounts'' and inserting:
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts'', and
            (2) by adding at the end the following new paragraph:
            ``(2) <<NOTE: Appropriation authorization.>> Transfer to 
        highway trust fund.--Out of amounts in the Leaking Underground 
        Storage Tank Trust Fund there is hereby appropriated 
        $2,400,000,000 to be transferred under section 9503(f)(3) to the 
        Highway Account (as defined in section 9503(e)(5)(B)) in the 
        Highway Trust Fund.''.

    (b) Transfer to Highway Trust Fund.--
            (1) In general.--Subsection (f) of section 9503 of the 
        Internal Revenue Code of 1986 is amended by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) Increase in fund balance.--There is hereby transferred 
        to the Highway Account (as defined in subsection (e)(5)(B)) in 
        the Highway Trust Fund amounts appropriated from the Leaking 
        Underground Storage Tank Trust Fund under section 9508(c)(2).''.
            (2) Conforming amendments.--Paragraph (4) of section 9503(f) 
        of such Code is amended--
                    (A) by inserting ``or transferred'' after 
                ``appropriated'', and
                    (B) by striking ``appropriated'' in the heading 
                thereof.

                     Subtitle B--Pension Provisions

                  PART I--PENSION FUNDING STABILIZATION

SEC. 40211. PENSION FUNDING STABILIZATION.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) In general.--Subparagraph (C) of section 430(h)(2) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new clause:
                          ``(iv) Segment rate stabilization.--
                                    ``(I) <<NOTE: Time period.>> In 
                                general.--If a segment rate described in 
                                clause (i), (ii), or (iii) with respect 
                                to any applicable month (determined 
                                without regard to this clause) is less 
                                than the applicable minimum percentage, 
                                or more than the applicable maximum 
                                percentage, of the average of the 
                                segment rates described in such clause 
                                for years in the 25-year period ending 
                                with September 30 of the calendar year 
                                preceding the calendar year in which the 
                                plan year begins, then the segment rate 
                                described in such clause with respect to 
                                the applicable month

[[Page 126 STAT. 847]]

                                shall be equal to the applicable minimum 
                                percentage or the applicable maximum 
                                percentage of such average, whichever is 
                                closest. <<NOTE: Determination.>> The 
                                Secretary shall determine such average 
                                on an annual basis and may prescribe 
                                equivalent rates for years in any such 
                                25-year period for which the rates 
                                described in any such clause are not 
                                available.
                                    ``(II) Applicable minimum 
                                percentage; applicable maximum 
                                percentage.--For purposes of subclause 
                                (I), the applicable minimum percentage 
                                and the applicable maximum percentage 
                                for a plan year beginning in a calendar 
                                year shall be determined in accordance 
                                with the following table:

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

            (2) Conforming amendments.--
                    (A) Paragraph (6) of section 404(o) of such 
                Code <<NOTE: 26 USC 404.>> is amended by inserting 
                ``(determined by not taking into account any adjustment 
                under clause (iv) of subsection (h)(2)(C) thereof)'' 
                before the period.
                    (B) Subparagraph (F) of section 430(h)(2) of such 
                Code is amended by inserting ``and the averages 
                determined under subparagraph (C)(iv)'' after 
                ``subparagraph (C)''.
                    (C) Subparagraphs (C) and (D) of section 417(e)(3) 
                of such Code are each amended by striking ``section 
                430(h)(2)(C)'' and inserting ``section 430(h)(2)(C) 
                (determined by not taking into account any adjustment 
                under clause (iv) thereof)''.
                    (D) Section 420 of such Code is amended by adding at 
                the end the following new subsection:

    ``(g) Segment Rates Determined Without Pension Stabilization.-- 
<<NOTE: Applicability.>> For purposes of this section, section 430 shall 
be applied without regard to subsection (h)(2)(C)(iv) thereof.''.

    (b) Amendments to Employee Retirement Income Security Act of 1974.--
            (1) In general.--Subparagraph (C) of section 303(h)(2) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1083(h)(2)) is amended by adding at the end the following new 
        clause:
                          ``(iv) Segment rate stabilization.--
                                    ``(I) <<NOTE: Time period.>> In 
                                general.--If a segment rate described in 
                                clause (i), (ii), or (iii) with respect 
                                to any applicable month (determined 
                                without regard to this clause) is less 
                                than the applicable minimum

[[Page 126 STAT. 848]]

                                percentage, or more than the applicable 
                                maximum percentage, of the average of 
                                the segment rates described in such 
                                clause for years in the 25-year period 
                                ending with September 30 of the calendar 
                                year preceding the calendar year in 
                                which the plan year begins, then the 
                                segment rate described in such clause 
                                with respect to the applicable month 
                                shall be equal to the applicable minimum 
                                percentage or the applicable maximum 
                                percentage of such average, whichever is 
                                closest. 
                                The <<NOTE: Determination.>> Secretary 
                                of the Treasury shall determine such 
                                average on an annual basis and may 
                                prescribe equivalent rates for years in 
                                any such 25-year period for which the 
                                rates described in any such clause are 
                                not available.
                                    ``(II) Applicable minimum 
                                percentage; applicable maximum 
                                percentage.--For purposes of subclause 
                                (I), the applicable minimum percentage 
                                and the applicable maximum percentage 
                                for a plan year beginning in a calendar 
                                year shall be determined in accordance 
                                with the following table:

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

            (2) Disclosure of effect of segment rate stabilization on 
        plan funding.--
                    (A) In general.--Paragraph (2) of section 101(f) of 
                such Act (29 U.S.C. 1021(f)) is amended by adding at the 
                end the following new subparagraph:
                    ``(D) Effect of segment rate stabilization on plan 
                funding.--
                          ``(i) In general.--In the case of a single-
                      employer plan for an applicable plan year, each 
                      notice under paragraph (1) shall include--
                                    ``(I) a statement that the MAP-21 
                                modified the method for determining the 
                                interest rates used to determine the 
                                actuarial value of benefits earned under 
                                the plan, providing for a 25-year 
                                average of interest rates to be taken 
                                into account in addition to a 2-year 
                                average,
                                    ``(II) a statement that, as a result 
                                of the MAP-21, the plan sponsor may 
                                contribute less money to the plan when 
                                interest rates are at historical lows, 
                                and

[[Page 126 STAT. 849]]

                                    ``(III) a table which shows 
                                (determined both with and without regard 
                                to section 303(h)(2)(C)(iv)) the funding 
                                target attainment percentage (as defined 
                                in section 303(d)(2)), the funding 
                                shortfall (as defined in section 
                                303(c)(4)), and the minimum required 
                                contribution (as determined under 
                                section 303), for the applicable plan 
                                year and each of the 2 preceding plan 
                                years.
                          ``(ii) <<NOTE: Definition.>> Applicable plan 
                      year.--For purposes of this subparagraph, the term 
                      `applicable plan year' means any plan year 
                      beginning after December 31, 2011, and before 
                      January 1, 2015, for which--
                                    ``(I) the funding target (as defined 
                                in section 303(d)(2)) is less than 95 
                                percent of such funding target 
                                determined without regard to section 
                                303(h)(2)(C)(iv),
                                    ``(II) the plan has a funding 
                                shortfall (as defined in section 
                                303(c)(4) and determined without regard 
                                to section 303(h)(2)(C)(iv)) greater 
                                than $500,000, and
                                    ``(III) the plan had 50 or more 
                                participants on any day during the 
                                preceding plan year.
                      For purposes of any determination under subclause 
                      (III), the aggregation rule under the last 
                      sentence of section 303(g)(2)(B) shall apply.
                          ``(iii) Special rule for plan years beginning 
                      before 2012.--In the case of a preceding plan year 
                      referred to in clause (i)(III) which begins before 
                      January 1, 2012, the information described in such 
                      clause shall be provided only without regard to 
                      section 303(h)(2)(C)(iv).''.
                    (B) <<NOTE: 29 USC 1021 note.>> Model notice.--The 
                Secretary of Labor shall modify the model notice 
                required to be published under section 501(c) of the 
                Pension Protection Act of 2006 to prominently include 
                the information described in section 101(f)(2)(D) of the 
                Employee Retirement Income Security Act of 1974, as 
                added by this paragraph.
            (3) Conforming amendments.--
                    (A) Subparagraph (F) of section 303(h)(2) of such 
                Act (29 U.S.C. 1083(h)(2)) is amended by inserting ``and 
                the averages determined under subparagraph (C)(iv)'' 
                after ``subparagraph (C)''.
                    (B) Clauses (ii) and (iii) of section 205(g)(3)(B) 
                of such Act (29 U.S.C. 1055(g)(3)(B)) are each amended 
                by striking ``section 303(h)(2)(C)'' and inserting 
                ``section 303(h)(2)(C) (determined by not taking into 
                account any adjustment under clause (iv) thereof)''.
                    (C) Clause (iv) of section 4006(a)(3)(E) of such Act 
                (29 U.S.C. 1306(a)(3)(E)) is amended by striking 
                ``section 303(h)(2)(C)'' and inserting ``section 
                303(h)(2)(C) (notwithstanding any regulations issued by 
                the corporation, determined by not taking into account 
                any adjustment under clause (iv) thereof)''.
                    (D) Section 4010(d) of such Act (29 U.S.C. 1310(d)) 
                is amended by adding at the end the following:
            ``(3) <<NOTE: Determination.>> Pension stabilization 
        disregarded.--For purposes of this section, the segment rates 
        used in determining the

[[Page 126 STAT. 850]]

        funding target and funding target attainment percentage shall be 
        determined by not taking into account any adjustment under 
        section 302(h)((2)(C)(iv).''.

    (c) <<NOTE: Applicability. 26 USC 1404 note.>> Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to plan years beginning after December 31, 
        2011.
            (2) Rules with respect to elections.--
                    (A) Adjusted funding target attainment percentage.--
                A plan sponsor may elect not to have the amendments made 
                by this section apply to any plan year beginning before 
                January 1, 2013, either (as specified in the election)--
                          (i) for all purposes for which such amendments 
                      apply, or
                          (ii) solely for purposes of determining the 
                      adjusted funding target attainment percentage 
                      under sections 436 of the Internal Revenue Code of 
                      1986 and 206(g) of the Employee Retirement Income 
                      Security Act of 1974 for such plan year.
                A plan shall not be treated as failing to meet the 
                requirements of sections 204(g) of such Act and 
                411(d)(6) of such Code solely by reason of an election 
                under this paragraph.
                    (B) Opt out of existing elections.--If, on the date 
                of the enactment of this Act, an election is in effect 
                with respect to any plan under sections 
                303(h)((2)(D)(ii) of the Employee Retirement Income 
                Security Act of 1974 and 430(h)((2)(D)(ii) of the 
                Internal Revenue Code of 1986, then, notwithstanding the 
                last sentence of each such section, the plan sponsor may 
                revoke such election without the consent of the 
                Secretary of the Treasury. The plan sponsor may make 
                such revocation at any time before the date which is 1 
                year after such date of enactment and such revocation 
                shall be effective for the 1st plan year to which the 
                amendments made by this section apply and all subsequent 
                plan years. Nothing in this subparagraph shall preclude 
                a plan sponsor from making a subsequent election in 
                accordance with such sections.

                         PART II--PBGC PREMIUMS

SEC. 40221. <<NOTE: Time periods.>> SINGLE EMPLOYER PLAN ANNUAL 
                            PREMIUM RATES.

    (a) Flat-rate Premium.--
            (1) In general.--Clause (i) of section 4006(a)(3)(A) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1306(a)(3)(A)) is amended to read as follows:
            ``(i) in the case of a single-employer plan, an amount for 
        each individual who is a participant in such plan during the 
        plan year equal to the sum of the additional premium (if any) 
        determined under subparagraph (E) and--
                    ``(I) for plan years beginning after December 31, 
                2005, and before January 1, 2013, $30;
                    ``(II) for plan years beginning after December 31, 
                2012, and before January 1, 2014, $42; and
                    ``(III) for plan years beginning after December 31, 
                2013, $49.''.

[[Page 126 STAT. 851]]

            (2) Adjustment for inflation.--Subparagraph (F) of section 
        4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended--
                    (A) in clause (i)(II), by inserting ``(2012 in the 
                case of plan years beginning after calendar year 2014)'' 
                after ``2004''; and
                    (B) by adding at the end the following new sentence: 
                ``This subparagraph shall not apply to plan years 
                beginning in 2013 or 2014.''.

    (b) Variable-rate Premium.--
            (1) In general.--Subparagraph (E)(ii) of section 4006(a)(3) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1306(a)(3)) is amended by striking ``$9.00'' and 
        inserting ``the applicable dollar amount under paragraph (8)''.
            (2) Applicable dollar amount.--Section 4006(a) of such Act 
        (29 U.S.C. 1306(a)) is amended by adding at the end the 
        following:
            ``(8) Applicable dollar amount for variable rate premium.--
        For purposes of paragraph (3)(E)(ii)--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the applicable dollar amount 
                shall be--
                          ``(i) $9 for plan years beginning in a 
                      calendar year before 2015;
                          ``(ii) for plan years beginning in calendar 
                      year 2015, the amount in effect for plan years 
                      beginning in 2014 (determined after application of 
                      subparagraph (C)); and
                          ``(iii) for plan years beginning after 
                      calendar year 2015, the amount in effect for plan 
                      years beginning in 2015 (determined after 
                      application of subparagraph (C)).
                    ``(B) Adjustment for inflation.--For each plan year 
                beginning in a calendar year after 2012, there shall be 
                substituted for the applicable dollar amount specified 
                under subparagraph (A) an amount equal to the greater 
                of--
                          ``(i) the product derived by multiplying such 
                      applicable dollar amount for plan years beginning 
                      in that calendar year by the ratio of--
                                    ``(I) the national average wage 
                                index (as defined in section 209(k)(1) 
                                of the Social Security Act) for the 
                                first of the 2 calendar years preceding 
                                the calendar year in which such plan 
                                year begins, to
                                    ``(II) the national average wage 
                                index (as so defined) for the base year; 
                                and
                          ``(ii) such applicable dollar amount in effect 
                      for plan years beginning in the preceding calendar 
                      year.
                If the amount determined under this subparagraph is not 
                a multiple of $1, such product shall be rounded to the 
                nearest multiple of $1.
                    ``(C) Additional increase in 2014 and 2015.--The 
                applicable dollar amount determined under subparagraph 
                (A) (after the application of subparagraph (B)) shall be 
                increased--
                          ``(i) in the case of plan years beginning in 
                      calendar year 2014, by $4; and
                          ``(ii) in the case of plan years beginning in 
                      calendar year 2015, by $5.

[[Page 126 STAT. 852]]

                    ``(D) Base year.--For purposes of subparagraph (B), 
                the base year is--
                          ``(i) 2010, in the case of plan years 
                      beginning in calendar year 2013 or 2014;
                          ``(ii) 2012, in the case of plan years 
                      beginning in calendar year 2015; and
                          ``(iii) 2013, in the case of plan years 
                      beginning after calendar year 2015.''.
            (3) Cap.--
                    (A) In general.--Subparagraph (E)(i) of section 
                4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended 
                by striking ``for any plan year shall be'' and all that 
                follows through the end and inserting the following 
                ``for any plan year--
            ``(I) shall be an amount equal to the amount determined 
        under clause (ii) divided by the number of participants in such 
        plan as of the close of the preceding plan year; and
            ``(II) in the case of plan years beginning in a calendar 
        year after 2012, shall not exceed $400.''.
                    (B) Adjustment for inflation.--Paragraph (3) of 
                section 4006(a) of such Act (29 U.S.C. 1306(a)(3)), as 
                amended by this Act, is amended by adding at the end the 
                following:

    ``(J) For each plan year beginning in a calendar year after 2013, 
there shall be substituted for the dollar amount specified in subclause 
(II) of subparagraph (E)(i) an amount equal to the greater of--
            ``(i) the product derived by multiplying such dollar amount 
        by the ratio of--
                    ``(I) the national average wage index (as defined in 
                section 209(k)(1) of the Social Security Act) for the 
                first of the 2 calendar years preceding the calendar 
                year in which such plan year begins, to
                    ``(II) the national average wage index (as so 
                defined) for 2011; and
            ``(ii) such dollar amount for plan years beginning in the 
        preceding calendar year.

If the amount determined under this subparagraph is not a multiple of 
$1, such product shall be rounded to the nearest multiple of $1.''.
SEC. 40222. <<NOTE: Time periods.>> MULTIEMPLOYER ANNUAL PREMIUM 
                            RATES.

    (a) In General.--Subparagraph (A) of section 4006(a)(3) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) 
is amended--
            (1) by inserting ``and before January 1, 2013,'' after 
        ``December 31, 2005,'' in clause (iv),
            (2) by striking ``or'' at the end of clause (iii),
            (3) by striking the period at the end of clause (iv) and 
        inserting ``, or'', and
            (4) by adding at the end the following new clause:
            ``(v) in the case of a multiemployer plan, for plan years 
        beginning after December 31, 2012, $12.00 for each individual 
        who is a participant in such plan during the applicable plan 
        year.''.

    (b) Inflation Adjustment.--Paragraph (3) of section 4006(a) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) 
is amended by adding at the end the following:

[[Page 126 STAT. 853]]

    ``(I) For each plan year beginning in a calendar year after 2013, 
there shall be substituted for the premium rate specified in clause (v) 
of subparagraph (A) an amount equal to the greater of--
            ``(i) the product derived by multiplying the premium rate 
        specified in clause (v) of subparagraph (A) by the ratio of--
                    ``(I) the national average wage index (as defined in 
                section 209(k)(1) of the Social Security Act) for the 
                first of the 2 calendar years preceding the calendar 
                year in which such plan year begins, to
                    ``(II) the national average wage index (as so 
                defined) for 2011; and
            ``(ii) the premium rate in effect under clause (v) of 
        subparagraph (A) for plan years beginning in the preceding 
        calendar year.

If the amount determined under this subparagraph is not a multiple of 
$1, such product shall be rounded to the nearest multiple of $1.''.

                     PART III--IMPROVEMENTS OF PBGC

SEC. 40231. PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE 
                            IMPROVEMENT.

    (a) Board of Directors of the Pension Benefit Guaranty 
Corporation.--
            (1) In general.--Section 4002(d) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1302(d)) is amended--
                    (A) by striking ``(d) The board of directors'' and 
                inserting ``(d)(1) The board of directors''; and
                    (B) by adding at the end the following:

    ``(2) A majority of the members of the board of directors in office 
shall constitute a quorum for the transaction of business. The vote of 
the majority of the members present and voting at a meeting at which a 
quorum is present shall be the act of the board of directors.
    ``(3) Each member of the board of directors shall designate in 
writing an official, not below the level of Assistant Secretary, to 
serve as the voting representative of such member on the board. Such 
designation shall be effective until revoked or until a date or event 
specified therein. Any such representative may refer for board action 
any matter under consideration by the designating board member, but such 
representative shall not count toward establishment of a quorum as 
described under paragraph (2).
    ``(4) T <<NOTE: Reports.>> he Inspector General of the corporation 
shall report to the board of directors, and not less than twice a year, 
shall attend a meeting of the board of directors to provide a report on 
the activities and findings of the Inspector General, including with 
respect to monitoring and review of the operations of the corporation.

    ``(5) The General Counsel of the corporation shall--
            ``(A) serve as the secretary to the board of directors, and 
        advise such board as needed; and
            ``(B) have overall responsibility for all legal matters 
        affecting the corporation and provide the corporation with legal 
        advice and opinions on all matters of law affecting the 
        corporation, except that the authority of the General Counsel 
        shall

[[Page 126 STAT. 854]]

        not extend to the Office of Inspector General and the 
        independent legal counsel of such Office.

    ``(6) Notwithstanding any other provision of this Act, the Office of 
Inspector General and the legal counsel of such Office are independent 
of the management of the corporation and the General Counsel of the 
corporation.
    ``(7) The board of directors may appoint and fix the compensation of 
employees as may be required to enable the board of directors to perform 
its duties. <<NOTE: Determination.>> The board of directors shall 
determine the qualifications and duties of such employees and may 
appoint and fix the compensation of experts and consultants in 
accordance with the provisions of section 3109 of title 5, United States 
Code.''.
            (2) Number of meetings; public availability.--Section 
        4002(e) of such Act (29 U.S.C. 1302(e)) is amended--
                    (A) by striking ``The board'' and inserting ``(1) 
                The board'';
                    (B) by striking ``the corporation.'' and inserting 
                ``the corporation, but in no case less than 4 times a 
                year with not fewer than 2 members present. Not less 
                than 1 meeting of the board of directors during each 
                year shall be a joint meeting with the advisory 
                committee under subsection (h).''; and
                    (C) by adding at the end the following:

    ``(2)(A) Except as provided in subparagraph (B), the chairman of the 
board of directors shall make available to the public the minutes from 
each meeting of the board of directors.
    ``(B) The minutes of a meeting of the board of directors, or a 
portion thereof, shall not be subject to disclosure under subparagraph 
(A) if the chairman reasonably determines that such minutes, or portion 
thereof, contain confidential employer information including information 
obtained under section 4010, information about the investment activities 
of the corporation, or information regarding personnel decisions of the 
corporation.
    ``(C) The minutes of a meeting, or portion of thereof, exempt from 
disclosure pursuant to subparagraph (B) shall be exempt from disclosure 
under section 552(b) of title 5, United States Code. For purposes of 
such section 552, this subparagraph shall be considered a statute 
described in subsection (b)(3) of such section 552.''.
            (3) Advisory committee.--
                    (A) Issues considered by the committee.--Section 
                4002(h)(1) of such Act (29 U.S.C. 1302(h)(1)) is 
                amended--
                          (i) by striking ``, and (D)'' and inserting 
                      ``, (D)''; and
                          (ii) by striking ``time to time.'' and 
                      inserting ``time to time, and (E) other issues as 
                      determined appropriate by the advisory 
                      committee.''.
                    (B) Joint meeting.--Section 4002(h)(3) of such Act 
                (29 U.S.C. 1302(h)(3)) is amended by adding at the end 
                the following: ``Not less than 1 meeting of the advisory 
                committee during each year shall be a joint meeting with 
                the board of directors under subsection (e).''.

    (b) Avoiding Conflicts of Interest.--Section 4002 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1302) is amended by 
adding at the end the following:
    ``(j) Conflicts of Interest.--
            ``(1) In general.--The Director of the corporation and each 
        member of the board of directors shall not participate in a

[[Page 126 STAT. 855]]

        decision of the corporation in which the Director or such member 
        has a direct financial interest. The Director of the corporation 
        shall not participate in any activities that would present a 
        potential conflict of interest or appearance of a conflict of 
        interest without approval of the board of directors.
            ``(2) Establishment of policy.--The board of directors shall 
        establish a policy that will inform the identification of 
        potential conflicts of interests of the members of the board of 
        directors and mitigate perceived conflicts of interest of such 
        members and the Director of the corporation.''.

    (c) Risk Mitigation.--Section 4002 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1302), as amended by subsection (b), is 
further amended by adding at the end the following:
    ``(k) Risk Management Officer.--The corporation shall have a risk 
management officer whose duties include evaluating and mitigating the 
risk that the corporation might experience. <<NOTE: Recommenda- 
tions.>> The individual in such position shall coordinate the risk 
management efforts of the corporation, explain risks and controls to 
senior management and the board of directors of the corporation, and 
make recommendations.''.

    (d) Director.--Section 4002(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1302(c)) is amended to read as follows:
    ``(c) The Director shall be accountable to the board of directors. 
The Director shall serve for a term of 5 years unless removed by the 
President or the board of directors before the expiration of such 5-year 
term.''.
    (e) <<NOTE: 29 USC 1302 note.>> Senses of Congress.--
            (1) Formation of committees.--It is the sense of Congress 
        that the board of directors of the Pension Benefit Guaranty 
        Corporation established under section 4002 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
        amended by this section, should form committees, including an 
        audit committee and an investment committee composed of not less 
        than 2 members, to enhance the overall effectiveness of the 
        board of directors.
            (2) Advisory committee.--It is the sense of Congress that 
        the advisory committee to the Pension Benefit Guaranty 
        Corporation established under section 4002 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1302), as 
        amended by this section, should provide to the board of 
        directors of such corporation policy recommendations regarding 
        changes to the law that would be beneficial to the corporation 
        or the voluntary private pension system.

    (f) Study Regarding Governance Structures.--
            (1) <<NOTE: Deadline. Contracts.>> In general.--Not later 
        than 90 days after the date of enactment of this Act, the 
        Pension Benefit Guaranty Corporation shall enter into a contract 
        with the National Academy of Public Administration to conduct 
        the study described in paragraph (2) with respect to the Pension 
        Benefit Guaranty Corporation.
            (2) Content of study.--The study conducted under paragraph 
        (1) shall include--
                    (A) a review of the governance structures of 
                governmental and nongovernmental organizations that are 
                analogous to the Pension Benefit Guaranty Corporation; 
                and

[[Page 126 STAT. 856]]

                    (B) recommendations regarding--
                          (i) the ideal size and composition of the 
                      board of directors of the Pension Benefit Guaranty 
                      Corporation;
                          (ii) procedures to select and remove members 
                      of such board;
                          (iii) qualifications and term lengths of 
                      members of such board; and
                          (iv) policies necessary to enhance 
                      Congressional oversight and transparency of such 
                      board and to mitigate potential conflicts of 
                      interest of the members of such board.
            (3) <<NOTE: Deadline. Results.>> Submission to congress.--
        Not later than 1 year after the initiation of the study under 
        paragraph (1), the National Academy of Public Administration 
        shall submit the results of the study to the Committees on 
        Health, Education, Labor, and Pensions and Finance of the Senate 
        and the Committees on Education and the Workforce and Ways and 
        Means of the House of Representatives.
SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE.

    (a) In General.--Title IV of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1301 et seq.) is amended by inserting after 
section 4003 the following:
``SEC. 4004. <<NOTE: 29 USC 1304.>> PARTICIPANT AND PLAN SPONSOR 
                          ADVOCATE.

    ``(a) In General.--The board of directors of the corporation shall 
select a Participant and Plan Sponsor Advocate from the candidates 
nominated by the advisory committee to the corporation under section 
4002(h)(1) and without regard to the provisions of title 5, United 
States Code, relating to appointments in the competitive service or 
Senior Executive Service.
    ``(b) Duties.--The Participant and Plan Sponsor Advocate shall--
            ``(1) act as a liaison between the corporation, sponsors of 
        defined benefit pension plans insured by the corporation, and 
        participants in pension plans trusteed by the corporation;
            ``(2) advocate for the full attainment of the rights of 
        participants in plans trusteed by the corporation;
            ``(3) assist pension plan sponsors and participants in 
        resolving disputes with the corporation;
            ``(4) identify areas in which participants and plan sponsors 
        have persistent problems in dealings with the corporation;
            ``(5) to the extent possible, propose changes in the 
        administrative practices of the corporation to mitigate 
        problems;
            ``(6) identify potential legislative changes which may be 
        appropriate to mitigate problems; and
            ``(7) refer instances of fraud, waste, and abuse, and 
        violations of law to the Office of the Inspector General of the 
        corporation.

    ``(c) <<NOTE: Notification. Deadline.>> Removal.--If the Participant 
and Plan Sponsor Advocate is removed from office or is transferred to 
another position or location within the corporation or the Department of 
Labor, the board of the directors of the corporation shall communicate 
in writing the reasons for any such removal or transfer to Congress not 
less than 30 days before the removal or transfer. Nothing in this 
subsection shall prohibit a personnel action otherwise authorized by 
law, other than transfer or removal.

[[Page 126 STAT. 857]]

    ``(d) Compensation.--The annual rate of basic pay for the 
Participant and Plan Sponsor Advocate shall be the same rate as the 
highest rate of basic pay established for the Senior Executive Service 
under section 5382 of title 5, United States Code, or, if the board of 
directors of the corporation so determines, at a rate fixed under 
section 9503 of such title.
    ``(e) Annual Report.--
            ``(1) In general.--Not later than December 31 of each 
        calendar year, the Participant and Plan Sponsor Advocate shall 
        report to the Health, Education, Labor, and Pensions Committee 
        of the Senate, the Committee on Finance of the Senate, the 
        Committee on Education and the Workforce of the House of 
        Representatives, and the Committee on Ways and Means of the 
        House of Representatives on the activities of the Office of the 
        Participant and Plan Sponsor Advocate during the fiscal year 
        ending during such calendar year.
            ``(2) Content.--Each report submitted under paragraph (1) 
        shall--
                    ``(A) summarize the assistance requests received 
                from participants and plan sponsors and describe the 
                activities, and evaluate the effectiveness, of the 
                Participant and Plan Sponsor Advocate during the 
                preceding year;
                    ``(B) identify significant problems the Participant 
                and Plan Sponsor Advocate has identified;
                    ``(C) include specific legislative and regulatory 
                changes to address the problems; and
                    ``(D) identify any actions taken to correct problems 
                identified in any previous report.
            ``(3) <<NOTE: Records.>> Concurrent submission.--The 
        Participant and Plan Sponsor Advocate shall submit a copy of 
        each report to the Secretary of Labor, the Director of the 
        corporation, and any other appropriate official at the same time 
        such report is submitted to the committees of Congress under 
        paragraph (1).''.

    (b) Advisory Committee Nominations.--Section 4002(h)(1) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C.1302(h)(1)) is 
amended by adding at the end the following new sentence: ``In the event 
of a vacancy or impending vacancy in the office of the Participant and 
Plan Sponsor Advocate established under section 4004, the Advisory 
Committee shall, in consultation with the Director of the corporation 
and participant and plan sponsor advocacy groups, nominate at least two 
but no more than three individuals to serve as the Participant and Plan 
Sponsor Advocate.''.
    (c) Clerical Amendment.--The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 is amended by inserting 
after the item relating to section 4003 the following new item:

``4004. Participant and Plan Sponsor Advocate.''.

SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION BENEFIT 
                            GUARANTY CORPORATION.

    (a) <<NOTE: Contracts. 29 USC 1302 note.>> Annual Peer Review of 
Insurance Modeling Systems.--The Pension Benefit Guaranty Corporation 
shall contract with a capable agency or organization that is independent 
from the Corporation, such as the Social Security Administration, to 
conduct an annual peer review of the Corporation's Single-Employer 
Pension Insurance Modeling System and the Corporation's Multiemployer

[[Page 126 STAT. 858]]

Pension Insurance Modeling System. The board of directors of the 
Corporation shall designate the agency or organization with which any 
such contract is entered into. <<NOTE: Deadline.>> The first of such 
annual peer reviews shall be initiated no later than 3 months after the 
date of enactment of this Act.

    (b) <<NOTE: 29 USC 1302 note.>> Policies and Procedures Relating to 
the Policy, Research, and Analysis Department.--The Pension Benefit 
Guaranty Corporation shall--
            (1) develop written quality review policies and procedures 
        for all modeling and actuarial work performed by the 
        Corporation's Policy, Research, and Analysis Department; and
            (2) <<NOTE: Records.>> conduct a record management review of 
        such Department to determine what records must be retained as 
        Federal records.

    (c) Report Relating to OIG Recommendations.--Not later than 2 months 
after the date of enactment of this Act, the Pension Benefit Guaranty 
Corporation shall submit to Congress a report, approved by the board of 
directors of the Corporation, setting forth a timetable for addressing 
the outstanding recommendations of the Office of the Inspector General 
relating to the Policy, Research, and Analysis Department and the 
Benefits Administration and Payment Department.
SEC. 40234. LINE OF CREDIT REPEAL.

    (a) In General.--Subsection (c) of section 4005 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1305) is repealed.
    (b) Conforming Amendments.--
            (1) Section 4005 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1305) is amended--
                    (A) in subsection (b)--
                          (i) paragraph (1)--
                                    (I) by striking subparagraph (A); 
                                and
                                    (II) by redesignating subparagraphs 
                                (B) through (G) as subparagraphs (A) 
                                through (F), respectively;
                          (ii) in paragraph (2)--
                                    (I) by striking subparagraph (C); 
                                and
                                    (II) by redesignating subparagraphs 
                                (D) and (E) as subparagraphs (C) and 
                                (D), respectively; and
                          (iii) in paragraph (3), by striking ``but,'' 
                      and all that follows through the end and inserting 
                      a period; and
                    (B) in subsection (g)--
                          (i) by striking paragraph (2); and
                          (ii) by redesignating paragraph (3) as 
                      paragraph (2).
            (2) Section 4402 of such Act (29 U.S.C. 1461) is amended--
                    (A) in subsection (c)(4)--
                          (i) by striking subparagraph (C); and
                          (ii) by redesignating subparagraph (D) as 
                      subparagraph (C); and
                    (B) in subsection (d), by striking ``or (D)''.

[[Page 126 STAT. 859]]

               PART IV--TRANSFERS OF EXCESS PENSION ASSETS

SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS TO 
                            RETIREE HEALTH ACCOUNTS.

    (a) In General.--Paragraph (5) of section 420(b) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 420.>> is amended by striking 
``December 31, 2013'' and inserting ``December 31, 2021''.

    (b) Conforming ERISA Amendments.--
            (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the 
        Employee Retirement Income Security Act of 1974 <<NOTE: 29 USC 
        1021, 1103, 1108.>> are each amended by striking ``Pension 
        Protection Act of 2006'' and inserting ``MAP-21''.
            (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13)) 
        is amended by striking ``January 1, 2014'' and inserting 
        ``January 1, 2022''.

    (c) <<NOTE: 26 USC 420 note.>> Effective Date.--The amendments made 
by this Act shall take effect on the date of the enactment of this Act.
SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP 
                            TERM LIFE INSURANCE ACCOUNTS.

    (a) In General.--Subsection (a) of section 420 of the Internal 
Revenue Code of 1986 is amended by inserting ``, or an applicable life 
insurance account,'' after ``health benefits account''.
    (b) Applicable Life Insurance Account Defined.--
            (1) In general.--Subsection (e) of section 420 of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        paragraphs (4) and (5) as paragraphs (5) and (6), respectively, 
        and by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Applicable life insurance account.--The term 
        `applicable life insurance account' means a separate account 
        established and maintained for amounts transferred under this 
        section for qualified current retiree liabilities based on 
        premiums for applicable life insurance benefits.''.
            (2) Applicable life insurance benefits defined.--Paragraph 
        (1) of section 420(e) of such Code is amended by redesignating 
        subparagraph (D) as subparagraph (E) and by inserting after 
        subparagraph (C) the following new subparagraph:
                    ``(D) Applicable life insurance benefits.--The term 
                `applicable life insurance benefits' means group-term 
                life insurance coverage provided to retired employees 
                who, immediately before the qualified transfer, are 
                entitled to receive such coverage by reason of 
                retirement and who are entitled to pension benefits 
                under the plan, but only to the extent that such 
                coverage is provided under a policy for retired 
                employees and the cost of such coverage is excludable 
                from the retired employee's gross income under section 
                79.''.
            (3) Collectively bargained life insurance benefits 
        defined.--
                    (A) In general.--Paragraph (6) of section 420(f) of 
                such Code is amended by redesignating subparagraph (D) 
                as subparagraph (E) and by inserting after subparagraph 
                (C) the following new subparagraph:

[[Page 126 STAT. 860]]

                    ``(D) Collectively bargained life insurance 
                benefits.--The term `collectively bargained life 
                insurance benefits' means, with respect to any 
                collectively bargained transfer--
                          ``(i) applicable life insurance benefits which 
                      are provided to retired employees who, immediately 
                      before the transfer, are entitled to receive such 
                      benefits by reason of retirement, and
                          ``(ii) if specified by the provisions of the 
                      collective bargaining agreement governing the 
                      transfer, applicable life insurance benefits which 
                      will be provided at retirement to employees who 
                      are not retired employees at the time of the 
                      transfer.''.
                    (B) Conforming amendments.--
                          (i) Clause (i) of section 420(e)(1)(C) of 
                      such <<NOTE: 26 USC 420.>> Code is amended by 
                      striking ``upon retirement'' and inserting ``by 
                      reason of retirement''.
                          (ii) Subparagraph (C) of section 420(f)(6) of 
                      such Code is amended--
                                    (I) by striking ``which are provided 
                                to'' in the matter preceding clause (i),
                                    (II) by inserting ``which are 
                                provided to'' before ``retired 
                                employees'' in clause (i),
                                    (III) by striking ``upon 
                                retirement'' in clause (i) and inserting 
                                ``by reason of retirement'', and
                                    (IV) by striking ``active employees 
                                who, following their retirement,'' and 
                                inserting ``which will be provided at 
                                retirement to employees who are not 
                                retired employees at the time of the 
                                transfer and who''.

    (c) Maintenance of Effort.--
            (1) In general.--Subparagraph (A) of section 420(c)(3) of 
        the Internal Revenue Code of 1986 is amended by inserting ``, 
        and each group-term life insurance plan under which applicable 
        life insurance benefits are provided,'' after ``health benefits 
        are provided''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 420(c)(3) of such 
                Code is amended--
                          (i) by redesignating subclauses (I) and (II) 
                      of clause (i) as subclauses (II) and (III) of such 
                      clause, respectively, and by inserting before 
                      subclause (II) of such clause, as so redesignated, 
                      the following new subclause:
                                    ``(I) separately with respect to 
                                applicable health benefits and 
                                applicable life insurance benefits,'', 
                                and
                          (ii) by striking ``for applicable health 
                      benefits'' and all that follows in clause (ii) and 
                      inserting ``was provided during such taxable year 
                      for the benefits with respect to which the 
                      determination under clause (i) is made.''.
                    (B) Subparagraph (C) of section 420(c)(3) of such 
                Code is amended--
                          (i) by inserting ``for applicable health 
                      benefits'' after ``applied separately'', and
                          (ii) by inserting ``, and separately for 
                      applicable life insurance benefits with respect to 
                      individuals age

[[Page 126 STAT. 861]]

                      65 or older at any time during the taxable year 
                      and with respect to individuals under age 65 
                      during the taxable year'' before the period.
                    (C) Subparagraph (E) of section 420(c)(3) of 
                such <<NOTE: 26 USC 420.>> Code is amended--
                          (i) in clause (i), by inserting ``or retiree 
                      life insurance coverage, as the case may be,'' 
                      after ``retiree health coverage'',
                          (ii) in clause (ii), by inserting ``for 
                      retiree health coverage'' after ``cost 
                      reductions'' in the heading thereof, and
                          (iii) in clause (ii)(II), by inserting ``with 
                      respect to applicable health benefits'' after 
                      ``liabilities of the employer''.
                    (D) Paragraph (2) of section 420(f) of such Code is 
                amended by striking ``collectively bargained retiree 
                health liabilities'' each place it occurs and inserting 
                ``collectively bargained retiree liabilities''.
                    (E) Clause (i) of section 420(f)(2)(D) of such Code 
                is amended--
                          (i) by inserting ``, and each group-term life 
                      insurance plan or arrangement under which 
                      applicable life insurance benefits are provided,'' 
                      in subclause (I) after ``applicable health 
                      benefits are provided'',
                          (ii) by inserting ``or applicable life 
                      insurance benefits, as the case may be,'' in 
                      subclause (I) after ``provides applicable health 
                      benefits'',
                          (iii) by striking ``group health'' in 
                      subclause (II), and
                          (iv) by inserting ``or collectively bargained 
                      life insurance benefits'' in subclause (II) after 
                      ``collectively bargained health benefits''.
                    (F) Clause (ii) of section 420(f)(2)(D) of such Code 
                is amended--
                          (i) by inserting ``with respect to applicable 
                      health benefits or applicable life insurance 
                      benefits'' after ``requirements of subsection 
                      (c)(3)'', and
                          (ii) by adding at the end the following: 
                      ``Such election may be made separately with 
                      respect to applicable health benefits and 
                      applicable life insurance benefits. In the case of 
                      an election with respect to applicable life 
                      insurance benefits, the first sentence of this 
                      clause shall be applied as if subsection (c)(3) as 
                      in effect before the amendments made by such Act 
                      applied to such benefits.''.
                    (G) Clause (iii) of section 420(f)(2)(D) of such 
                Code is amended--
                          (i) by striking ``retiree'' each place it 
                      occurs, and
                          (ii) by inserting ``, collectively bargained 
                      life insurance benefits, or both, as the case may 
                      be,'' after ``health benefits'' each place it 
                      occurs.

    (d) Coordination With Section 79.--Section 79 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(f) Exception for Life Insurance Purchased in Connection With 
Qualified Transfer of Excess Pension Assets.--Subsection (b)(3) and 
section 72(m)(3) shall not apply in the case

[[Page 126 STAT. 862]]

of any cost paid (whether directly or indirectly) with assets held in an 
applicable life insurance account (as defined in section 420(e)(4)) 
under a defined benefit plan.''.
    (e) Conforming Amendments.--
            (1) Section 420 of the Internal Revenue Code of 
        1986 <<NOTE: 26 USC 420.>> is amended by striking ``qualified 
        current retiree health liabilities'' each place it appears and 
        inserting ``qualified current retiree liabilities''.
            (2) Section 420 of such Code is amended by inserting ``, or 
        an applicable life insurance account,'' after ``a health 
        benefits account'' each place it appears in subsection 
        (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection 
        (c)(1), subsection (d)(1)(A), and subsection (f)(2)(E)(ii).
            (3) Section 420(b) of such Code is amended--
                    (A) by adding the following at the end of paragraph 
                (2)(A): ``If there is a transfer from a defined benefit 
                plan to both a health benefits account and an applicable 
                life insurance account during any taxable year, such 
                transfers shall be treated as 1 transfer for purposes of 
                this paragraph.'', and
                    (B) by inserting ``to an account'' after ``may be 
                transferred'' in paragraph (3).
            (4) The heading for section 420(c)(1)(B) of such Code is 
        amended by inserting ``or life insurance'' after ``health 
        benefits''.
            (5) Paragraph (1) of section 420(e) of such Code is 
        amended--
                    (A) by inserting ``and applicable life insurance 
                benefits'' in subparagraph (A) after ``applicable health 
                benefits'', and
                    (B) by striking ``health'' in the heading thereof.
            (6) Subparagraph (B) of section 420(e)(1) of such Code is 
        amended--
                    (A) in the matter preceding clause (i), by inserting 
                ``(determined separately for applicable health benefits 
                and applicable life insurance benefits)'' after ``shall 
                be reduced by the amount'',
                    (B) in clause (i), by inserting ``or applicable life 
                insurance accounts'' after ``health benefit accounts'', 
                and
                    (C) in clause (i), by striking ``qualified current 
                retiree health liability'' and inserting ``qualified 
                current retiree liability''.
            (7) The heading for subsection (f) of section 420 of such 
        Code is amended by striking ``health'' each place it occurs.
            (8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code 
        is amended by inserting ``or applicable life insurance account, 
        as the case may be,'' after ``health benefits account''.
            (9) Subclause (III) of section 420(f)(2)(E)(i) of such Code 
        is amended--
                    (A) by inserting ``defined benefit'' before ``plan 
                maintained by an employer'', and
                    (B) by inserting ``health'' before ``benefit plans 
                maintained by the employer''.
            (10) Paragraphs (4) and (6) of section 420(f) of such Code 
        are each amended by striking ``collectively bargained retiree 
        health liabilities'' each place it occurs and inserting 
        ``collectively bargained retiree liabilities''.

[[Page 126 STAT. 863]]

            (11) Subparagraph (A) of section 420(f)(6) <<NOTE: 26 USC 
        420.>> of such Code is amended--
                    (A) in clauses (i) and (ii), by inserting ``, in the 
                case of a transfer to a health benefits account,'' 
                before ``his covered spouse and dependents'', and
                    (B) in clause (ii), by striking ``health plan'' and 
                inserting ``plan''.
            (12) Subparagraph (B) of section 420(f)(6) of such Code is 
        amended--
                    (A) in clause (i), by inserting ``, and collectively 
                bargained life insurance benefits,'' after 
                ``collectively bargained health benefits'',
                    (B) in clause (ii)--
                          (i) <<NOTE: Applicability.>> by adding at the 
                      end the following: ``The preceding sentence shall 
                      be applied separately for collectively bargained 
                      health benefits and collectively bargained life 
                      insurance benefits.'', and
                          (ii) by inserting ``, applicable life 
                      insurance accounts,'' after ``health benefit 
                      accounts'', and
                    (C) by striking ``health'' in the heading thereof.
            (13) Subparagraph (E) of section 420(f)(6) of such Code, as 
        redesignated by subsection (b), is amended--
                    (A) by striking ``bargained health'' and inserting 
                ``bargained'',
                    (B) by inserting ``, or a group-term life insurance 
                plan or arrangement for retired employees,'' after 
                ``dependents'', and
                    (C) by striking ``health'' in the heading thereof.
            (14) Section 101(e) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1021(e)) is amended--
                    (A) in paragraphs (1) and (2), by inserting ``or 
                applicable life insurance account'' after ``health 
                benefits account'' each place it appears, and
                    (B) in paragraph (1), by inserting ``or applicable 
                life insurance benefit liabilities'' after ``health 
                benefits liabilities''.

    (f) Technical Correction.--Clause (iii) of section 420(f)(6)(B) of 
the Internal Revenue Code of 1986 is amended by striking ``416(I)(1)'' 
and inserting ``416(i)(1)''.
    (g) Repeal of Deadwood.--
            (1) Subparagraph (A) of section 420(b)(1) of the Internal 
        Revenue Code of 1986 is amended by striking ``in a taxable year 
        beginning after December 31, 1990''.
            (2) Subsection (b) of section 420 of such Code is amended by 
        striking paragraph (4) and by redesignating paragraph (5), as 
        amended by this Act, as paragraph (4).
            (3) Paragraph (2) of section 420(b) of such Code, as amended 
        by this section, is amended--
                    (A) by striking subparagraph (B), and
                    (B) by striking ``per year.--'' and all that follows 
                through ``No more than'' and inserting ``per year.--No 
                more than''.
            (4) Paragraph (2) of section 420(c) of such Code is 
        amended--
                    (A) by striking subparagraph (B),
                    (B) by moving subparagraph (A) two ems to the left, 
                and

[[Page 126 STAT. 864]]

                    (C) by striking ``before transfer.--'' and all that 
                follows through ``The requirements of this paragraph'' 
                and inserting the following: ``before transfer.--The 
                requirements of this paragraph''.
            (5) Paragraph (2) of section 420(d) of such Code <<NOTE: 26 
        USC 420.>> is amended by striking ``after December 31, 1990''.

    (h) <<NOTE: 26 USC 420 note.>> Effective Date.--
            (1) <<NOTE: Applicability.>> In general.--The amendments 
        made by this section shall apply to transfers made after the 
        date of the enactment of this Act.
            (2) Conforming amendments relating to pension protection 
        act.--The amendments made by subsections (b)(3)(B) and (f) shall 
        take effect as if included in the amendments made by section 
        841(a) of the Pension Protection Act of 2006.

         Subtitle C--Additional Transfers to Highway Trust Fund

SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.

    Subsection (f) of section 9503 of the Internal Revenue Code of 1986, 
as amended by this Act, is amended by redesignating paragraph (4) as 
paragraph (5) and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Additional appropriations to trust fund.--Out of money 
        in the Treasury not otherwise appropriated, there is hereby 
        appropriated to--
                    ``(A) the Highway Account (as defined in subsection 
                (e)(5)(B)) in the Highway Trust Fund--
                          ``(i) for fiscal year 2013, $6,200,000,000, 
                      and
                          ``(ii) for fiscal year 2014, $10,400,000,000, 
                      and
                    ``(B) the Mass Transit Account in the Highway Trust 
                Fund, for fiscal year 2014, $2,200,000,000.''.

 DIVISION E-- <<NOTE: Transportation Research and Innovative Technology 
Act of 2012.>> RESEARCH AND EDUCATION
SEC. 50001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This division may be cited as the ``Transportation Research and 
Innovative Technology Act of 2012''.

                            TITLE I--FUNDING

SEC. 51001. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following amounts are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Highway research and development program.--To carry out 
        sections 503(b), 503(d), and 509 of title 23, United States 
        Code, $115,000,000 for each of fiscal years 2013 and 2014.

[[Page 126 STAT. 865]]

            (2) Technology and innovation deployment program.--To carry 
        out section 503(c) of title 23, United States Code, $62,500,000 
        for each of fiscal years 2013 and 2014.
            (3) Training and education.--To carry out section 504 of 
        title 23, United States Code, $24,000,000 for each of fiscal 
        years 2013 and 2014.
            (4) Intelligent transportation systems program.--To carry 
        out sections 512 through 518 of title 23, United States Code, 
        $100,000,000 for each of fiscal years 2013 and 2014.
            (5) University transportation centers program.--To carry out 
        section 5505 of title 49, United States Code, $72,500,000 for 
        each of fiscal years 2013 and 2014.
            (6) Bureau of transportation statistics.--To carry out 
        chapter 63 of title 49, United States Code, $26,000,000 for each 
        of fiscal years 2013 and 2014.

    (b) Applicability of Title 23, United States Code.--Funds authorized 
to be appropriated by subsection (a) shall--
            (1) be available for obligation in the same manner as if 
        those funds were apportioned under chapter 1 of title 23, United 
        States Code, except that the Federal share of the cost of a 
        project or activity carried out using those funds shall be 80 
        percent, unless otherwise expressly provided by this Act 
        (including the amendments by this Act) or otherwise determined 
        by the Secretary; and
            (2) remain available until expended and not be transferable.

              TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

SEC. 52001. <<NOTE: Definitions.>> RESEARCH, TECHNOLOGY, AND 
                            EDUCATION.

    Section 501 of title 23, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (8);
            (2) by inserting after paragraph (1) the following:
            ``(2) Incident.--The term `incident' means a crash, natural 
        disaster, workzone activity, special event, or other emergency 
        road user occurrence that adversely affects or impedes the 
        normal flow of traffic.
            ``(3) Innovation lifecycle.--The term `innovation lifecycle' 
        means the process of innovating through--
                    ``(A) the identification of a need;
                    ``(B) the establishment of the scope of research to 
                address that need;
                    ``(C) setting an agenda;
                    ``(D) carrying out research, development, 
                deployment, and testing of the resulting technology or 
                innovation; and
                    ``(E) carrying out an evaluation of the costs and 
                benefits of the resulting technology or innovation.
            ``(4) Intelligent transportation infrastructure.--The term 
        `intelligent transportation infrastructure' means fully 
        integrated public sector intelligent transportation system 
        components, as defined by the Secretary.
            ``(5) Intelligent transportation system.--The terms 
        `intelligent transportation system' and `ITS' mean electronics, 
        photonics, communications, or information processing used singly 
        or in combination to improve the efficiency or safety of a 
        surface transportation system.

[[Page 126 STAT. 866]]

            ``(6) National architecture.--For purposes of this chapter, 
        the term `national architecture' means the common framework for 
        interoperability that defines--
                    ``(A) the functions associated with intelligent 
                transportation system user services;
                    ``(B) the physical entities or subsystems within 
                which the functions reside;
                    ``(C) the data interfaces and information flows 
                between physical subsystems; and
                    ``(D) the communications requirements associated 
                with the information flows.
            ``(7) Project.--The term `project' means an undertaking to 
        research, develop, or operationally test intelligent 
        transportation systems or any other undertaking eligible for 
        assistance under this chapter.''; and
            (3) by inserting after paragraph (8) (as so redesignated) 
        the following:
            ``(9) Standard.--The term `standard' means a document that--
                    ``(A) contains technical specifications or other 
                precise criteria for intelligent transportation systems 
                that are to be used consistently as rules, guidelines, 
                or definitions of characteristics so as to ensure that 
                materials, products, processes, and services are fit for 
                the intended purposes of the materials, products, 
                processes, and services; and
                    ``(B) may support the national architecture and 
                promote--
                          ``(i) the widespread use and adoption of 
                      intelligent transportation system technology as a 
                      component of the surface transportation systems of 
                      the United States; and
                          ``(ii) interoperability among intelligent 
                      transportation system technologies implemented 
                      throughout the States.''.
SEC. 52002. SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, AND 
                            TECHNOLOGY.

    (a) Surface Transportation Research, Development, and Technology.--
Section 502 of title 23, United States Code, is amended--
            (1) in the section heading by inserting ``, development, and 
        technology'' after ``surface transportation research'';
            (2) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (8) as 
                paragraphs (2) through (9), respectively;
                    (B) by inserting before paragraph (2) (as 
                redesignated by subparagraph (A)) the following:
            ``(1) Applicability.--The research, development, and 
        technology provisions of this section shall apply throughout 
        this chapter.'';
                    (C) in paragraph (2) (as redesignated by 
                subparagraph (A))--
                          (i) by inserting ``within the innovation 
                      lifecycle'' after ``activities''; and
                          (ii) by inserting ``communications, impact 
                      analysis,'' after ``training,'';

[[Page 126 STAT. 867]]

                    (D) in paragraph (3) (as redesignated by 
                subparagraph (A))--
                          (i) in subparagraph (B) by striking ``supports 
                      research in which there is a clear public benefit 
                      and'' and inserting ``delivers a clear public 
                      benefit and occurs where'';
                          (ii) in subparagraph (C) by striking ``or'' 
                      after the semicolon;
                          (iii) by redesignating subparagraph (D) as 
                      subparagraph (I); and
                          (iv) by inserting after subparagraph (C) the 
                      following:
                    ``(D) meets and addresses current or emerging needs;
                    ``(E) addresses current gaps in research;
                    ``(F) presents the best means to align resources 
                with multiyear plans and priorities;
                    ``(G) ensures the coordination of highway research 
                and technology transfer activities, including through 
                activities performed by university transportation 
                centers;
                    ``(H) educates transportation professionals; or'';
                    (E) in paragraph (4) (as redesignated by 
                subparagraph (A)) by striking subparagraphs (B) through 
                (D) and inserting the following:
                    ``(B) partner with State highway agencies and other 
                stakeholders as appropriate to facilitate research and 
                technology transfer activities;
                    ``(C) communicate the results of ongoing and 
                completed research;
                    ``(D) lead efforts to coordinate national emphasis 
                areas of highway research, technology, and innovation 
                deployment;
                    ``(E) leverage partnerships with industry, academia, 
                international entities, and State departments of 
                transportation;
                    ``(F) lead efforts to reduce unnecessary duplication 
                of effort; and
                    ``(G) lead efforts to accelerate innovation 
                delivery.'';
                    (F) in paragraph (5)(C) (as redesignated by 
                subparagraph (A)) by striking ``policy and planning'' 
                and inserting ``all highway objectives seeking to 
                improve the performance of the transportation system'';
                    (G) in paragraph (6) (as redesignated by 
                subparagraph (A)) in the second sentence, by inserting 
                ``tribal governments,'' after ``local governments,'';
                    (H) in paragraph (8) (as redesignated by 
                subparagraph (A))--
                          (i) in the first sentence, by striking ``To 
                      the maximum'' and inserting the following:
                    ``(A) In general.--To the maximum'';
                          (ii) in the second sentence, by striking 
                      ``Performance measures'' and inserting the 
                      following:
                    ``(B) Performance measures.--Performance measures'';
                          (iii) in the third sentence, by striking ``All 
                      evaluations'' and inserting the following:
                    ``(D) Availability of evaluations.--All evaluations 
                under this paragraph''; and

[[Page 126 STAT. 868]]

                          (iv) by inserting after subparagraph (B) the 
                      following:
                    ``(C) Program plan.--To the maximum extent 
                practicable, each program pursued under this chapter 
                shall be part of a data-driven, outcome-oriented program 
                plan.''; and
                    (I) in paragraph (9) (as redesignated by 
                subparagraph (A)), by striking ``surface'';
            (3) in subsection (b)--
                    (A) in paragraph (4) by striking ``surface 
                transportation research and technology development 
                strategic plan developed under section 508'' and 
                inserting ``transportation research and development 
                strategic plan of the Secretary developed under section 
                508'';
                    (B) in paragraph (5) by striking ``section'' each 
                place it appears and inserting ``chapter'';
                    (C) in paragraph (6) by adding at the end the 
                following:
                    ``(C) Transfer of amounts among states or to federal 
                highway administration.--The Secretary may, at the 
                request of a State, transfer amounts apportioned or 
                allocated to that State under this chapter to another 
                State or the Federal Highway Administration to fund 
                research, development, and technology transfer 
                activities of mutual interest on a pooled funds basis.
                    ``(D) Transfer of obligation authority.--Obligation 
                authority for amounts transferred under this subsection 
                shall be disbursed in the same manner and for the same 
                amount as provided for the project being transferred.''; 
                and
                    (D) by adding at the end the following:
            ``(7) Prize competitions.--
                    ``(A) In general.--The Secretary may use up to 1 
                percent of the funds made available under section 51001 
                of the Transportation Research and Innovative Technology 
                Act of 2012 to carry out a program to competitively 
                award cash prizes to stimulate innovation in basic and 
                applied research and technology development that has the 
                potential for application to the national transportation 
                system.
                    ``(B) Topics.--In selecting topics for prize 
                competitions under this paragraph, the Secretary shall--
                          ``(i) <<NOTE: Consultation.>> consult with a 
                      wide variety of governmental and nongovernmental 
                      representatives; and
                          ``(ii) give consideration to prize goals that 
                      demonstrate innovative approaches and strategies 
                      to improve the safety, efficiency, and 
                      sustainability of the national transportation 
                      system.
                    ``(C) Advertising.--The Secretary shall encourage 
                participation in the prize competitions through 
                advertising efforts.
                    ``(D) <<NOTE: Notice. Web posting.>> Requirements 
                and registration.--For each prize competition, the 
                Secretary shall publish a notice on a public website 
                that describes--
                          ``(i) the subject of the competition;
                          ``(ii) the eligibility rules for participation 
                      in the competition;
                          ``(iii) the amount of the prize; and
                          ``(iv) the basis on which a winner will be 
                      selected.

[[Page 126 STAT. 869]]

                    ``(E) Eligibility.--An individual or entity may not 
                receive a prize under this paragraph unless the 
                individual or entity--
                          ``(i) has registered to participate in the 
                      competition pursuant to any rules promulgated by 
                      the Secretary under this section;
                          ``(ii) has complied with all requirements 
                      under this paragraph;
                          ``(iii)(I) in the case of a private entity, is 
                      incorporated in, and maintains a primary place of 
                      business in, the United States; or
                          ``(II) in the case of an individual, whether 
                      participating singly or in a group, is a citizen 
                      or permanent resident of the United States;
                          ``(iv) is not a Federal entity or Federal 
                      employee acting within the scope of his or her 
                      employment; and
                          ``(v) has not received a grant to perform 
                      research on the same issue for which the prize is 
                      awarded.
                    ``(F) Liability.--
                          ``(i) Assumption of risk.--
                                    ``(I) In general.--A registered 
                                participant shall agree to assume any 
                                and all risks and waive claims against 
                                the Federal Government and its related 
                                entities, except in the case of willful 
                                misconduct, for any injury, death, 
                                damage, or loss of property, revenue, or 
                                profits, whether direct, indirect, or 
                                consequential, arising from 
                                participation in a competition, whether 
                                such injury, death, damage, or loss 
                                arises through negligence or otherwise.
                                    ``(II) Related entity.--In this 
                                subparagraph, the term `related entity' 
                                means a contractor, subcontractor (at 
                                any tier), supplier, user, customer, 
                                cooperating party, grantee, 
                                investigator, or detailee.
                          ``(ii) Financial responsibility.--A 
                      participant shall obtain liability insurance or 
                      demonstrate financial responsibility, in amounts 
                      determined by the Secretary, for claims by--
                                    ``(I) a third party for death, 
                                bodily injury, or property damage, or 
                                loss resulting from an activity carried 
                                out in connection with participation in 
                                a competition, with the Federal 
                                Government named as an additional 
                                insured under the registered 
                                participant's insurance policy and 
                                registered participants agreeing to 
                                indemnify the Federal Government against 
                                third party claims for damages arising 
                                from or related to competition 
                                activities; and
                                    ``(II) the Federal Government for 
                                damage or loss to Government property 
                                resulting from such an activity.
                    ``(G) Judges.--
                          ``(i) Selection.--Subject to clause (iii), for 
                      each prize competition, the Secretary, either 
                      directly or through an agreement under 
                      subparagraph (H), may

[[Page 126 STAT. 870]]

                      appoint 1 or more qualified judges to select the 
                      winner or winners of the prize competition on the 
                      basis of the criteria described in subparagraph 
                      (D).
                          ``(ii) Selection.--Judges for each competition 
                      shall include individuals from outside the Federal 
                      Government, including the private sector.
                          ``(iii) Limitations.--A judge selected under 
                      this subparagraph may not--
                                    ``(I) have personal or financial 
                                interests in, or be an employee, 
                                officer, director, or agent of, any 
                                entity that is a registered participant 
                                in a prize competition under this 
                                paragraph; or
                                    ``(II) have a familial or financial 
                                relationship with an individual who is a 
                                registered participant.
                    ``(H) Administering the competition.--The Secretary 
                may enter into an agreement with a private, nonprofit 
                entity to administer the prize competition, subject to 
                the provisions of this paragraph.
                    ``(I) Funding.--
                          ``(i) In general.--
                                    ``(I) Private sector funding.--A 
                                cash prize under this paragraph may 
                                consist of funds appropriated by the 
                                Federal Government and funds provided by 
                                the private sector.
                                    ``(II) Government funding.--The 
                                Secretary may accept funds from other 
                                Federal agencies, State and local 
                                governments, and metropolitan planning 
                                organizations for a cash prize under 
                                this paragraph.
                                    ``(III) No special consideration.--
                                The Secretary may not give any special 
                                consideration to any private sector 
                                entity in return for a donation under 
                                this subparagraph.
                          ``(ii) Availability of funds.--Notwithstanding 
                      any other provision of law, amounts appropriated 
                      for prize awards under this paragraph--
                                    ``(I) shall remain available until 
                                expended; and
                                    ``(II) m <<NOTE: Time period.>> ay 
                                not be transferred, reprogrammed, or 
                                expended for other purposes until after 
                                the expiration of the 10-year period 
                                beginning on the last day of the fiscal 
                                year for which the funds were originally 
                                appropriated.
                          ``(iii) Savings provision.--Nothing in this 
                      subparagraph may be construed to permit the 
                      obligation or payment of funds in violation of the 
                      Anti-Deficiency Act (31 U.S.C. 1341).
                          ``(iv) Prize announcement.--A prize may not be 
                      announced under this paragraph until all the funds 
                      needed to pay out the announced amount of the 
                      prize have been appropriated by a governmental 
                      source or committed to in writing by a private 
                      source.
                          ``(v) Prize increases.--The Secretary may 
                      increase the amount of a prize after the initial 
                      announcement of the prize under this paragraph 
                      if--
                                    ``(I) notice of the increase is 
                                provided in the same manner as the 
                                initial notice of the prize; and

[[Page 126 STAT. 871]]

                                    ``(II) the funds needed to pay out 
                                the announced amount of the increase 
                                have been appropriated by a governmental 
                                source or committed to in writing by a 
                                private source.
                          ``(vi) <<NOTE: Time period.>> Congressional 
                      notification.--A prize competition under this 
                      paragraph may offer a prize in an amount greater 
                      than $1,000,000 only after 30 days have elapsed 
                      after written notice has been transmitted to the 
                      Committee on Commerce, Science, and Transportation 
                      of the Senate and the Committees on Transportation 
                      and Infrastructure and Science, Space, and 
                      Technology of the House of Representatives.
                          ``(vii) Award limit.--A prize competition 
                      under this section may not result in the award of 
                      more than $25,000 in cash prizes without the 
                      approval of the Secretary.
                    ``(J) Compliance with existing law.--The Federal 
                Government shall not, by virtue of offering or providing 
                a prize under this paragraph, be responsible for 
                compliance by registered participants in a prize 
                competition with Federal law, including licensing, 
                export control, and non-proliferation laws, and related 
                regulations.
                    ``(K) Notice and annual report.--
                          ``(i) In general.--Not later than 30 days 
                      prior to carrying out an activity under 
                      subparagraph (A), the Secretary shall notify the 
                      Committees on Transportation and Infrastructure 
                      and Science, Space, and Technology of the House of 
                      Representatives and the Committees on Environment 
                      and Public Works and Commerce, Science, and 
                      Transportation of the Senate of the intent to use 
                      such authority.
                          ``(ii) Reports.--
                                    ``(I) In general.--The Secretary 
                                shall submit to the committees described 
                                in clause (i) on an annual basis a 
                                report on the activities carried out 
                                under subparagraph (A) in the preceding 
                                fiscal year if the Secretary exercised 
                                the authority under subparagraph (A) in 
                                that fiscal year.
                                    ``(II) Information included.--A 
                                report under this subparagraph shall 
                                include, for each prize competition 
                                under subparagraph (A)--
                                            ``(aa) a description of the 
                                        proposed goals of the prize 
                                        competition;
                                            ``(bb) an analysis of why 
                                        the use of the authority under 
                                        subparagraph (A) was the 
                                        preferable method of achieving 
                                        the goals described in item (aa) 
                                        as opposed to other authorities 
                                        available to the Secretary, such 
                                        as contracts, grants, and 
                                        cooperative agreements;
                                            ``(cc) the total amount of 
                                        cash prizes awarded for each 
                                        prize competition, including a 
                                        description of the amount of 
                                        private funds contributed to the 
                                        program, the source of such 
                                        funds, and the manner in which 
                                        the amounts

[[Page 126 STAT. 872]]

                                        of cash prizes awarded and 
                                        claimed were allocated among the 
                                        accounts of the Department for 
                                        recording as obligations and 
                                        expenditures;
                                            ``(dd) the methods used for 
                                        the solicitation and evaluation 
                                        of submissions under each prize 
                                        competition, together with an 
                                        assessment of the effectiveness 
                                        of such methods and lessons 
                                        learned for future prize 
                                        competitions;
                                            ``(ee) a description of the 
                                        resources, including personnel 
                                        and funding, used in the 
                                        execution of each prize 
                                        competition together with a 
                                        detailed description of the 
                                        activities for which such 
                                        resources were used and an 
                                        accounting of how funding for 
                                        execution was allocated among 
                                        the accounts of the agency for 
                                        recording as obligations and 
                                        expenditures; and
                                            ``(ff) a description of how 
                                        each prize competition advanced 
                                        the mission of the 
                                        Department.'';
            (4) in subsection (c)--
                    (A) in paragraph (3)(A)--
                          (i) by striking ``subsection'' and inserting 
                      ``chapter''; and
                          (ii) by striking ``50'' and inserting ``80''; 
                      and
                    (B) in paragraph (4) by striking ``subsection'' and 
                inserting ``chapter''; and
            (5) by striking subsections (d) through (j).

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item relating to section 
502 and inserting the following:

``502. Surface transportation research, development, and technology.''

SEC. 52003. RESEARCH AND TECHNOLOGY DEVELOPMENT AND DEPLOYMENT.

    (a) In General.--Section 503 of title 23, United States Code, is 
amended to read as follows:
``Sec. 503. Research and technology development and deployment

    ``(a) In General.--The Secretary shall--
            ``(1) carry out research, development, and deployment 
        activities that encompass the entire innovation lifecycle; and
            ``(2) ensure that all research carried out under this 
        section aligns with the transportation research and development 
        strategic plan of the Secretary under section 508.

    ``(b) Highway Research and Development Program.--
            ``(1) Objectives.--In carrying out the highway research and 
        development program, the Secretary, to address current and 
        emerging highway transportation needs, shall--
                    ``(A) identify research topics;
                    ``(B) coordinate research and development 
                activities;
                    ``(C) carry out research, testing, and evaluation 
                activities; and
                    ``(D) provide technology transfer and technical 
                assistance.
            ``(2) Improving highway safety.--

[[Page 126 STAT. 873]]

                    ``(A) In general.--The Secretary shall carry out 
                research and development activities from an integrated 
                perspective to establish and implement systematic 
                measures to improve highway safety.
                    ``(B) Objectives.--In carrying out this paragraph, 
                the Secretary shall carry out research and development 
                activities--
                          ``(i) to achieve greater long-term safety 
                      gains;
                          ``(ii) to reduce the number of fatalities and 
                      serious injuries on public roads;
                          ``(iii) to fill knowledge gaps that limit the 
                      effectiveness of research;
                          ``(iv) to support the development and 
                      implementation of State strategic highway safety 
                      plans;
                          ``(v) to advance improvements in, and use of, 
                      performance prediction analysis for 
                      decisionmaking; and
                          ``(vi) to expand technology transfer to 
                      partners and stakeholders.
                    ``(C) Contents.--Research and technology activities 
                carried out under this paragraph may include--
                          ``(i) safety assessments and decisionmaking 
                      tools;
                          ``(ii) data collection and analysis;
                          ``(iii) crash reduction projections;
                          ``(iv) low-cost safety countermeasures;
                          ``(v) innovative operational improvements and 
                      designs of roadway and roadside features;
                          ``(vi) evaluation of countermeasure costs and 
                      benefits;
                          ``(vii) development of tools for projecting 
                      impacts of safety countermeasures;
                          ``(viii) rural road safety measures;
                          ``(ix) safety measures for vulnerable road 
                      users, including bicyclists and pedestrians;
                          ``(x) safety policy studies;
                          ``(xi) human factors studies and measures;
                          ``(xii) safety technology deployment;
                          ``(xiii) safety workforce professional 
                      capacity building initiatives;
                          ``(xiv) safety program and process 
                      improvements; and
                          ``(xv) tools and methods to enhance safety 
                      performance, including achievement of statewide 
                      safety performance targets.
            ``(3) Improving infrastructure integrity.--
                    ``(A) In general.--The Secretary shall carry out and 
                facilitate highway and bridge infrastructure research 
                and development activities--
                          ``(i) to maintain infrastructure integrity;
                          ``(ii) to meet user needs; and
                          ``(iii) to link Federal transportation 
                      investments to improvements in system performance.
                    ``(B) Objectives.--In carrying out this paragraph, 
                the Secretary shall carry out research and development 
                activities--
                          ``(i) to reduce the number of fatalities 
                      attributable to infrastructure design 
                      characteristics and work zones;

[[Page 126 STAT. 874]]

                          ``(ii) to improve the safety and security of 
                      highway infrastructure;
                          ``(iii) to increase the reliability of 
                      lifecycle performance predictions used in 
                      infrastructure design, construction, and 
                      management;
                          ``(iv) to improve the ability of 
                      transportation agencies to deliver projects that 
                      meet expectations for timeliness, quality, and 
                      cost;
                          ``(v) to reduce user delay attributable to 
                      infrastructure system performance, maintenance, 
                      rehabilitation, and construction;
                          ``(vi) to improve highway condition and 
                      performance through increased use of design, 
                      materials, construction, and maintenance 
                      innovations;
                          ``(vii) to reduce the environmental impacts of 
                      highway infrastructure through innovations in 
                      design, construction, operation, preservation, and 
                      maintenance; and
                          ``(viii) to study vulnerabilities of the 
                      transportation system to seismic activities and 
                      extreme events and methods to reduce those 
                      vulnerabilities.
                    ``(C) Contents.--Research and technology activities 
                carried out under this paragraph may include--
                          ``(i) long-term infrastructure performance 
                      programs addressing pavements, bridges, tunnels, 
                      and other structures;
                          ``(ii) short-term and accelerated studies of 
                      infrastructure performance;
                          ``(iii) research to develop more durable 
                      infrastructure materials and systems;
                          ``(iv) advanced infrastructure design methods;
                          ``(v) accelerated highway and bridge 
                      construction;
                          ``(vi) performance-based specifications;
                          ``(vii) construction and materials quality 
                      assurance;
                          ``(viii) comprehensive and integrated 
                      infrastructure asset management;
                          ``(ix) infrastructure safety assurance;
                          ``(x) sustainable infrastructure design and 
                      construction;
                          ``(xi) infrastructure rehabilitation and 
                      preservation techniques, including techniques to 
                      rehabilitate and preserve historic infrastructure;
                          ``(xii) hydraulic, geotechnical, and 
                      aerodynamic aspects of infrastructure;
                          ``(xiii) improved highway construction 
                      technologies and practices;
                          ``(xiv) improved tools, technologies, and 
                      models for infrastructure management, including 
                      assessment and monitoring of infrastructure 
                      condition;
                          ``(xv) studies to improve flexibility and 
                      resiliency of infrastructure systems to withstand 
                      climate variability;
                          ``(xvi) studies on the effectiveness of fiber-
                      based additives to improve the durability of 
                      surface transportation materials in various 
                      geographic regions;
                          ``(xvii) studies of infrastructure resilience 
                      and other adaptation measures;

[[Page 126 STAT. 875]]

                          ``(xviii) maintenance of seismic research 
                      activities, including research carried out in 
                      conjunction with other Federal agencies to study 
                      the vulnerability of the transportation system to 
                      seismic activity and methods to reduce that 
                      vulnerability; and
                          ``(xix) technology transfer and adoption of 
                      permeable, pervious, or porous paving materials, 
                      practices, and systems that are designed to 
                      minimize environmental impacts, stormwater runoff, 
                      and flooding and to treat or remove pollutants by 
                      allowing stormwater to infiltrate through the 
                      pavement in a manner similar to predevelopment 
                      hydrologic conditions.
                    ``(D) Lifecycle costs analysis study.--
                          ``(i) <<NOTE: Definition.>> In general.--In 
                      this subparagraph, the term `lifecycle costs 
                      analysis' means a process for evaluating the total 
                      economic worth of a usable project segment by 
                      analyzing initial costs and discounted future 
                      costs, such as maintenance, user, reconstruction, 
                      rehabilitation, restoring, and resurfacing costs, 
                      over the life of the project segment.
                          ``(ii) Study.--The Comptroller General shall 
                      conduct a study of the best practices for 
                      calculating lifecycle costs and benefits for 
                      federally funded highway projects, which shall 
                      include, at a minimum, a thorough literature 
                      review and a survey of current lifecycle cost 
                      practices of State departments of transportation.
                          ``(iii) Consultation.--In carrying out the 
                      study, the Comptroller shall consult with, at a 
                      minimum--
                                    ``(I) the American Association of 
                                State Highway and Transportation 
                                Officials;
                                    ``(II) appropriate experts in the 
                                field of lifecycle cost analysis; and
                                    ``(III) appropriate industry experts 
                                and research centers.
                    ``(E) Report.--Not later than 1 year after the date 
                of enactment of the Transportation Research and 
                Innovative Technology Act of 2012, the Comptroller 
                General shall submit to the Committee on Environment and 
                Public Works of the Senate and the Committees on 
                Transportation and Infrastructure and Science, Space, 
                and Technology of the House of Representatives a report 
                on the results of the study which shall include--
                          ``(i) a summary of the latest research on 
                      lifecycle cost analysis; and
                          ``(ii) recommendations on the appropriate--
                                    ``(I) period of analysis;
                                    ``(II) design period;
                                    ``(III) discount rates; and
                                    ``(IV) use of actual material life 
                                and maintenance cost data.
            ``(4) Strengthening transportation planning and 
        environmental decisionmaking.--
                    ``(A) In general.--The Secretary may carry out 
                research--
                          ``(i) to minimize the cost of transportation 
                      planning and environmental decisionmaking 
                      processes;

[[Page 126 STAT. 876]]

                          ``(ii) to improve transportation planning and 
                      environmental decisionmaking processes; and
                          ``(iii) to minimize the potential impact of 
                      surface transportation on the environment.
                    ``(B) Objectives.--In carrying out this paragraph 
                the Secretary may carry out research and development 
                activities--
                          ``(i) to minimize the cost of highway 
                      infrastructure and operations;
                          ``(ii) to reduce the potential impact of 
                      highway infrastructure and operations on the 
                      environment;
                          ``(iii) to advance improvements in 
                      environmental analyses and processes and context 
                      sensitive solutions for transportation 
                      decisionmaking;
                          ``(iv) to improve construction techniques;
                          ``(v) to accelerate construction to reduce 
                      congestion and related emissions;
                          ``(vi) to reduce the impact of highway runoff 
                      on the environment;
                          ``(vii) to improve understanding and modeling 
                      of the factors that contribute to the demand for 
                      transportation; and
                          ``(viii) to improve transportation planning 
                      decisionmaking and coordination.
                    ``(C) Contents.--Research and technology activities 
                carried out under this paragraph may include--
                          ``(i) creation of models and tools for 
                      evaluating transportation measures and 
                      transportation system designs, including the costs 
                      and benefits;
                          ``(ii) congestion reduction efforts;
                          ``(iii) transportation and economic 
                      development planning in rural areas and small 
                      communities;
                          ``(iv) improvement of State, local, and tribal 
                      government capabilities relating to surface 
                      transportation planning and the environment; and
                          ``(v) streamlining of project delivery 
                      processes.
            ``(5) Reducing congestion, improving highway operations, and 
        enhancing freight productivity.--
                    ``(A) In general.--The Secretary shall carry out 
                research under this paragraph with the goals of--
                          ``(i) addressing congestion problems;
                          ``(ii) reducing the costs of congestion;
                          ``(iii) improving freight movement;
                          ``(iv) increasing productivity; and
                          ``(v) improving the economic competitiveness 
                      of the United States.
                    ``(B) Objectives.--In carrying out this paragraph, 
                the Secretary shall carry out research and development 
                activities to identify, develop, and assess innovations 
                that have the potential--
                          ``(i) to reduce traffic congestion;
                          ``(ii) to improve freight movement; and
                          ``(iii) to reduce freight-related congestion 
                      throughout the transportation network.
                    ``(C) Contents.--Research and technology activities 
                carried out under this paragraph may include--
                          ``(i) active traffic and demand management;

[[Page 126 STAT. 877]]

                          ``(ii) acceleration of the implementation of 
                      Intelligent Transportation Systems technology;
                          ``(iii) advanced transportation concepts and 
                      analysis;
                          ``(iv) arterial management and traffic signal 
                      operation;
                          ``(v) congestion pricing;
                          ``(vi) corridor management;
                          ``(vii) emergency operations;
                          ``(viii) research relating to enabling 
                      technologies and applications;
                          ``(ix) freeway management;
                          ``(x) evaluation of enabling technologies;
                          ``(xi) impacts of vehicle size and weight on 
                      congestion;
                          ``(xii) freight operations and technology;
                          ``(xiii) operations and freight performance 
                      measurement and management;
                          ``(xiv) organization and planning for 
                      operations;
                          ``(xv) planned special events management;
                          ``(xvi) real-time transportation information;
                          ``(xvii) road weather management;
                          ``(xviii) traffic and freight data and 
                      analysis tools;
                          ``(xix) traffic control devices;
                          ``(xx) traffic incident management;
                          ``(xxi) work zone management;
                          ``(xxii) communication of travel, roadway, and 
                      emergency information to persons with 
                      disabilities;
                          ``(xxiii) research on enhanced mode choice and 
                      intermodal connectivity;
                          ``(xxiv) techniques for estimating and 
                      quantifying public benefits derived from freight 
                      transportation projects; and
                          ``(xxv) other research areas to identify and 
                      address emerging needs related to freight 
                      transportation by all modes.
            ``(6) Exploratory advanced research.--The Secretary shall 
        carry out research and development activities relating to 
        exploratory advanced research--
                    ``(A) to leverage the targeted capabilities of the 
                Turner-Fairbank Highway Research Center to develop 
                technologies and innovations of national importance; and
                    ``(B) to develop potentially transformational 
                solutions to improve the durability, efficiency, 
                environmental impact, productivity, and safety aspects 
                of highway and intermodal transportation systems.
            ``(7) Turner-fairbank highway research center.--
                    ``(A) <<NOTE: Operation.>> In general.--The 
                Secretary shall continue to operate in the Federal 
                Highway Administration a Turner-Fairbank Highway 
                Research Center.
                    ``(B) Uses of the center.--The Turner-Fairbank 
                Highway Research Center shall support--
                          ``(i) the conduct of highway research and 
                      development relating to emerging highway 
                      technology;
                          ``(ii) the development of understandings, 
                      tools, and techniques that provide solutions to 
                      complex technical problems through the development 
                      of economical and

[[Page 126 STAT. 878]]

                      environmentally sensitive designs, efficient and 
                      quality-controlled construction practices, and 
                      durable materials;
                          ``(iii) the development of innovative highway 
                      products and practices; and
                          ``(iv) the conduct of long-term, high-risk 
                      research to improve the materials used in highway 
                      infrastructure.
            ``(8) Infrastructure investment needs report.--
                    ``(A) In general.--Not later than July 31, 2013, and 
                July 31 of every second year thereafter, the Secretary 
                shall submit to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                a report that describes estimates of the future highway 
                and bridge needs of the United States and the backlog of 
                current highway and bridge needs.
                    ``(B) Comparisons.--Each report under subparagraph 
                (A) shall include all information necessary to relate 
                and compare the conditions and service measures used in 
                the previous biennial reports to conditions and service 
                measures used in the current report.
                    ``(C) Inclusions.--Each report under subparagraph 
                (A) shall provide recommendations to Congress on changes 
                to the highway performance monitoring system that 
                address--
                          ``(i) improvements to the quality and 
                      standardization of data collection on all 
                      functional classifications of Federal-aid highways 
                      for accurate system length, lane length, and 
                      vehicle-mile of travel; and
                          ``(ii) changes to the reporting requirements 
                      authorized under section 315, to reflect 
                      recommendations under this paragraph for 
                      collection, storage, analysis, reporting, and 
                      display of data for Federal-aid highways and, to 
                      the maximum extent practical, all public roads.

    ``(c) Technology and Innovation Deployment Program.--
            ``(1) In general.--The Secretary shall carry out a 
        technology and innovation deployment program relating to all 
        aspects of highway transportation, including planning, 
        financing, operation, structures, materials, pavements, 
        environment, construction, and the duration of time between 
        project planning and project delivery, with the goals of--
                    ``(A) significantly accelerating the adoption of 
                innovative technologies by the surface transportation 
                community;
                    ``(B) providing leadership and incentives to 
                demonstrate and promote state-of-the-art technologies, 
                elevated performance standards, and new business 
                practices in highway construction processes that result 
                in improved safety, faster construction, reduced 
                congestion from construction, and improved quality and 
                user satisfaction;
                    ``(C) constructing longer-lasting highways through 
                the use of innovative technologies and practices that 
                lead to faster construction of efficient and safe 
                highways and bridges;
                    ``(D) improving highway efficiency, safety, 
                mobility, reliability, service life, environmental 
                protection, and sustainability; and

[[Page 126 STAT. 879]]

                    ``(E) developing and deploying new tools, 
                techniques, and practices to accelerate the adoption of 
                innovation in all aspects of highway transportation.
            ``(2) Implementation.--
                    ``(A) In general.--The Secretary shall promote, 
                facilitate, and carry out the program established under 
                paragraph (1) to distribute the products, technologies, 
                tools, methods, or other findings that result from 
                highway research and development activities, including 
                research and development activities carried out under 
                this chapter.
                    ``(B) Accelerated innovation deployment.--In 
                carrying out the program established under paragraph 
                (1), the Secretary shall--
                          ``(i) establish and carry out demonstration 
                      programs;
                          ``(ii) provide technical assistance, and 
                      training to researchers and developers; and
                          ``(iii) develop improved tools and methods to 
                      accelerate the adoption of proven innovative 
                      practices and technologies as standard practices.
                    ``(C) Implementation of future strategic highway 
                research program findings and results.--
                          ``(i) In general.--The Secretary, in 
                      consultation with the American Association of 
                      State Highway and Transportation Officials and the 
                      Transportation Research Board of the National 
                      Academy of Sciences, shall promote research 
                      results and products developed under the future 
                      strategic highway research program administered by 
                      the Transportation Research Board of the National 
                      Academy of Sciences.
                          ``(ii) Basis for findings.--The activities 
                      carried out under this subparagraph shall be based 
                      on the report submitted to Congress by the 
                      Transportation Research Board of the National 
                      Academy of Sciences under section 510(e).
                          ``(iii) Personnel.--The Secretary may use 
                      funds made available to carry out this subsection 
                      for administrative costs under this subparagraph.
            ``(3) Accelerated implementation and deployment of pavement 
        technologies.--
                    ``(A) In general.--The Secretary shall establish and 
                implement a program under the technology and innovation 
                deployment program to promote, implement, deploy, 
                demonstrate, showcase, support, and document the 
                application of innovative pavement technologies, 
                practices, performance, and benefits.
                    ``(B) Goals.--The goals of the accelerated 
                implementation and deployment of pavement technologies 
                program shall include--
                          ``(i) the deployment of new, cost-effective 
                      designs, materials, recycled materials, and 
                      practices to extend the pavement life and 
                      performance and to improve user satisfaction;
                          ``(ii) the reduction of initial costs and 
                      lifecycle costs of pavements, including the costs 
                      of new construction, replacement, maintenance, and 
                      rehabilitation;

[[Page 126 STAT. 880]]

                          ``(iii) the deployment of accelerated 
                      construction techniques to increase safety and 
                      reduce construction time and traffic disruption 
                      and congestion;
                          ``(iv) the deployment of engineering design 
                      criteria and specifications for new and efficient 
                      practices, products, and materials for use in 
                      highway pavements;
                          ``(v) the deployment of new nondestructive and 
                      real-time pavement evaluation technologies and 
                      construction techniques; and
                          ``(vi) effective technology transfer and 
                      information dissemination to accelerate 
                      implementation of new technologies and to improve 
                      life, performance, cost effectiveness, safety, and 
                      user satisfaction.
                    ``(C) Funding.--The Secretary shall obligate for 
                each of fiscal years 2013 through 2014 from funds made 
                available to carry out this subsection $12,000,000 to 
                accelerate the deployment and implementation of pavement 
                technology.''.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item relating to section 
503 and inserting the following:

``503. Research and technology development and deployment.''.

SEC. 52004. TRAINING AND EDUCATION.

    Section 504 of title 23, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A) by inserting ``and the 
                employees of any other applicable Federal agency'' 
                before the semicolon at the end; and
                    (B) in paragraph (3)(A)(ii)(V) by striking 
                ``expediting'' and inserting ``reducing the amount of 
                time required for'';
            (2) in subsection (b) by striking paragraph (3) and 
        inserting the following:
            ``(3) Federal share.--
                    ``(A) Local technical assistance centers.--
                          ``(i) In general.--Subject to subparagraph 
                      (B), the Federal share of the cost of an activity 
                      carried out by a local technical assistance center 
                      under paragraphs (1) and (2) shall be 50 percent.
                          ``(ii) Non-federal share.--The non-Federal 
                      share of the cost of an activity described in 
                      clause (i) may consist of amounts provided to a 
                      recipient under subsection (e) or section 505, up 
                      to 100 percent of the non-Federal share.
                    ``(B) Tribal technical assistance centers.--The 
                Federal share of the cost of an activity carried out by 
                a tribal technical assistance center under paragraph 
                (2)(D)(ii) shall be 100 percent.'';
            (3) in subsection (c)(2)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                    ``(A) In general.--The Secretary'';
                    (B) in subparagraph (A) (as designated by 
                subparagraph (A)) by striking ``. The program'' and 
                inserting ``, which program''; and
                    (C) by adding at the end the following:

[[Page 126 STAT. 881]]

                    ``(B) Use of amounts.--Amounts provided to 
                institutions of higher education to carry out this 
                paragraph shall be used to provide direct support of 
                student expenses.'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A) 
                      by striking ``sections 104(b)(1), 104(b)(2), 
                      104(b)(3), 104(b)(4), and 144(e)'' and inserting 
                      ``paragraphs (1) through (4) of section 104(b)'';
                          (ii) in subparagraph (D) by striking ``and'' 
                      at the end;
                          (iii) in subparagraph (E) by striking the 
                      period and inserting a semicolon; and
                          (iv) by adding at the end the following:
                    ``(F) activities carried out by the National Highway 
                Institute under subsection (a); and
                    ``(G) local technical assistance programs under 
                subsection (b).''; and
                    (B) in paragraph (2) by inserting ``, except for 
                activities carried out under paragraph (1)(G), for which 
                the Federal share shall be 50 percent'' before the 
                period at the end;
            (5) in subsection (f) in the heading, by striking ``Pilot'';
            (6) in subsection (g)(4)(F) by striking ``excellence'' and 
        inserting ``stewardship''; and
            (7) by adding at the end the following:

    ``(h) Centers for Surface Transportation Excellence.--
            ``(1) <<NOTE: Grants.>> In general.--The Secretary shall 
        make grants under this section to establish and maintain centers 
        for surface transportation excellence.
            ``(2) Goals.--The goals of a center referred to in paragraph 
        (1) shall be to promote and support strategic national surface 
        transportation programs and activities relating to the work of 
        State departments of transportation in the areas of environment, 
        surface transportation safety, rural safety, and project 
        finance.
            ``(3) Role of the centers.--To achieve the goals set forth 
        in paragraph (2), any centers established under paragraph (1) 
        shall provide technical assistance, information sharing of best 
        practices, and training in the use of tools and decisionmaking 
        processes that can assist States in effectively implementing 
        surface transportation programs, projects, and policies.
            ``(4) Program administration.--
                    ``(A) <<NOTE: Contracts. Grants.>> Competition.--A 
                party entering into a contract, cooperative agreement, 
                or other transaction with the Secretary under this 
                subsection, or receiving a grant to perform research or 
                provide technical assistance under this subsection, 
                shall be selected on a competitive basis.
                    ``(B) Strategic plan.--The Secretary shall require 
                each center to develop a multiyear strategic plan, 
                that--
                          ``(i) is submitted to the Secretary at such 
                      time as the Secretary requires; and
                          ``(ii) describes--
                                    ``(I) the activities to be 
                                undertaken by the center; and
                                    ``(II) how the work of the center 
                                will be coordinated with the activities 
                                of the Federal Highway Administration 
                                and the various other research,

[[Page 126 STAT. 882]]

                                development, and technology transfer 
                                activities authorized under this 
                                chapter.''.
SEC. 52005. STATE PLANNING AND RESEARCH.

    Section 505 of title 23, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1) by 
                striking ``section 104 (other than sections 104(f) and 
                104(h)) and under section 144'' and inserting 
                ``paragraphs (1) through (4) of section 104(b)''; and
                    (B) in paragraph (3) by striking ``under section 
                303'' and inserting ``, plans, and processes under 
                sections 119, 148, 149, and 167'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (3) by inserting after subsection (b) the following:

    ``(c) Implementation of Future Strategic Highway Research Program 
Findings and Results.--
            ``(1) Funds.--A State shall make available to the Secretary 
        to carry out section 503(c)(2)(C) a percentage of funds subject 
        to subsection (a) that are apportioned to that State, that is 
        agreed to by \3/4\ of States for each of fiscal years 2013 and 
        2014.
            ``(2) Treatment of funds.--Funds expended under paragraph 
        (1) shall not be considered to be part of the extramural budget 
        of the agency for the purpose of section 9 of the Small Business 
        Act (15 U.S.C. 638).''; and
            (4) in subsection (e) (as so redesignated) by striking 
        ``section 118(b)(2)'' and inserting ``section 118(b)''.
SEC. 52006. INTERNATIONAL HIGHWAY TRANSPORTATION PROGRAM.

    (a) <<NOTE: Repeal.>> In General.--Section 506 of title 23, United 
States Code, is repealed.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item relating to section 
506.
SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE 
                            RESEARCH PROGRAM.

    (a) <<NOTE: Repeal.>> In General.--Section 507 of title 23, United 
States Code, is repealed.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item relating to section 
507.
SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH.

    (a) <<NOTE: Repeal.>>  In General.--Section 509 of title 23, United 
States Code, is repealed.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item relating to section 
509.
SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM.

    (a) In General.--Section 5505 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5505. <<NOTE: Grants.>> University transportation centers 
                  program

    ``(a) University Transportation Centers Program.--

[[Page 126 STAT. 883]]

            ``(1) Establishment and operation.--The Secretary shall make 
        grants under this section to eligible nonprofit institutions of 
        higher education to establish and operate university 
        transportation centers.
            ``(2) Role of centers.--The role of each university 
        transportation center referred to in paragraph (1) shall be--
                    ``(A) to advance transportation expertise and 
                technology in the varied disciplines that comprise the 
                field of transportation through education, research, and 
                technology transfer activities;
                    ``(B) to provide for a critical transportation 
                knowledge base outside of the Department of 
                Transportation; and
                    ``(C) to address critical workforce needs and 
                educate the next generation of transportation leaders.

    ``(b) Competitive Selection Process.--
            ``(1) Applications.--To receive a grant under this section, 
        a nonprofit institution of higher education shall submit to the 
        Secretary an application that is in such form and contains such 
        information as the Secretary may require.
            ``(2) Restriction.--A nonprofit institution of higher 
        education or the lead institution of a consortium of nonprofit 
        institutions of higher education, as applicable, that receives a 
        grant for a national transportation center or a regional 
        transportation center in a fiscal year shall not be eligible to 
        receive as a lead institution or member of a consortium an 
        additional grant in that fiscal year for a national 
        transportation center or a regional transportation center.
            ``(3) Coordination.--The Secretary shall solicit grant 
        applications for national transportation centers, regional 
        transportation centers, and Tier 1 university transportation 
        centers with identical advertisement schedules and deadlines.
            ``(4) General selection criteria.--
                    ``(A) In general.--Except as otherwise provided by 
                this section, the Secretary shall award grants under 
                this section in nonexclusive candidate topic areas 
                established by the Secretary that address the research 
                priorities identified in section 503 of title 23.
                    ``(B) <<NOTE: Assessment.>> Criteria.--The 
                Secretary, in consultation as appropriate with the 
                Administrators of the Federal Highway Administration and 
                the Federal Transit Administration, shall select each 
                recipient of a grant under this section through a 
                competitive process based on the assessment of the 
                Secretary relating to--
                          ``(i) the demonstrated ability of the 
                      recipient to address each specific topic area 
                      described in the research and strategic plans of 
                      the recipient;
                          ``(ii) the demonstrated research, technology 
                      transfer, and education resources available to the 
                      recipient to carry out this section;
                          ``(iii) the ability of the recipient to 
                      provide leadership in solving immediate and long-
                      range national and regional transportation 
                      problems;
                          ``(iv) the ability of the recipient to carry 
                      out research, education, and technology transfer 
                      activities that are multimodal and 
                      multidisciplinary in scope;

[[Page 126 STAT. 884]]

                          ``(v) the demonstrated commitment of the 
                      recipient to carry out transportation workforce 
                      development programs through--
                                    ``(I) degree-granting programs; and
                                    ``(II) outreach activities to 
                                attract new entrants into the 
                                transportation field;
                          ``(vi) the demonstrated ability of the 
                      recipient to disseminate results and spur the 
                      implementation of transportation research and 
                      education programs through national or statewide 
                      continuing education programs;
                          ``(vii) the demonstrated commitment of the 
                      recipient to the use of peer review principles and 
                      other research best practices in the selection, 
                      management, and dissemination of research 
                      projects;
                          ``(viii) the strategic plan submitted by the 
                      recipient describing the proposed research to be 
                      carried out by the recipient and the performance 
                      metrics to be used in assessing the performance of 
                      the recipient in meeting the stated research, 
                      technology transfer, education, and outreach 
                      goals; and
                          ``(ix) the ability of the recipient to 
                      implement the proposed program in a cost-efficient 
                      manner, such as through cost sharing and overall 
                      reduced overhead, facilities, and administrative 
                      costs.
            ``(5) Transparency.--
                    ``(A) In general.--The Secretary shall provide to 
                each applicant, upon request, any materials, including 
                copies of reviews (with any information that would 
                identify a reviewer redacted), used in the evaluation 
                process of the proposal of the applicant.
                    ``(B) Reports.--The Secretary shall submit to the 
                Committees on Transportation and Infrastructure and 
                Science, Space, and Technology of the House of 
                Representatives and the Committee on Environment and 
                Public Works of the Senate a report describing the 
                overall review process under paragraph (3) that 
                includes--
                          ``(i) specific criteria of evaluation used in 
                      the review;
                          ``(ii) descriptions of the review process; and
                          ``(iii) explanations of the selected awards.
            ``(6) <<NOTE: Consultation. Evaluation. Review.>> Outside 
        stakeholders.--The Secretary shall, to the maximum extent 
        practicable, consult external stakeholders such as the 
        Transportation Research Board of the National Academy of 
        Sciences to evaluate and competitively review all proposals.

    ``(c) Grants.--
            ``(1) <<NOTE: Deadline.>> In general.--Not later than 1 year 
        after the date of enactment of the Transportation Research and 
        Innovative Technology Act of 2012, the Secretary, in 
        consultation as appropriate with the Administrators of the 
        Federal Highway Administration and the Federal Transit 
        Administration, shall select grant recipients under subsection 
        (b) and make grant amounts available to the selected recipients.
            ``(2) National transportation centers.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall provide grants to 5 recipients that the

[[Page 126 STAT. 885]]

                Secretary determines best meet the criteria described in 
                subsection (b)(3).
                    ``(B) Restrictions.--
                          ``(i) In general.--For each fiscal year, a 
                      grant made available under this paragraph shall be 
                      $3,000,000 per recipient.
                          ``(ii) <<NOTE: Determination.>> Focused 
                      research.--The grant recipients under this 
                      paragraph shall focus research on national 
                      transportation issues, as determined by the 
                      Secretary.
                    ``(C) Matching requirement.--
                          ``(i) In general.--As a condition of receiving 
                      a grant under this paragraph, a grant recipient 
                      shall match 100 percent of the amounts made 
                      available under the grant.
                          ``(ii) Sources.--The matching amounts referred 
                      to in clause (i) may include amounts made 
                      available to the recipient under section 504(b) or 
                      505 of title 23.
            ``(3) Regional university transportation centers.--
                    ``(A) Location of regional centers.--One regional 
                university transportation center shall be located in 
                each of the 10 Federal regions that comprise the 
                Standard Federal Regions established by the Office of 
                Management and Budget in the document entitled `Standard 
                Federal Regions' and dated April, 1974 (circular A-105).
                    ``(B) Selection criteria.--In conducting a 
                competition under subsection (b), the Secretary shall 
                provide grants to 10 recipients on the basis of--
                          ``(i) the criteria described in subsection 
                      (b)(3);
                          ``(ii) the location of the center within the 
                      Federal region to be served; and
                          ``(iii) whether the institution (or, in the 
                      case of consortium of institutions, the lead 
                      institution) demonstrates that the institution has 
                      a well-established, nationally recognized program 
                      in transportation research and education, as 
                      evidenced by--
                                    ``(I) recent expenditures by the 
                                institution in highway or public 
                                transportation research;
                                    ``(II) a historical track record of 
                                awarding graduate degrees in 
                                professional fields closely related to 
                                highways and public transportation; and
                                    ``(III) an experienced faculty who 
                                specialize in professional fields 
                                closely related to highways and public 
                                transportation.
                    ``(C) Restrictions.--For each fiscal year, a grant 
                made available under this paragraph shall be $2,750,000 
                for each recipient.
                    ``(D) Matching requirements.--
                          ``(i) In general.--As a condition of receiving 
                      a grant under this paragraph, a grant recipient 
                      shall match 100 percent of the amounts made 
                      available under the grant.
                          ``(ii) Sources.--The matching amounts referred 
                      to in the clause (i) may include amounts made 
                      available to the recipient under section 504(b) or 
                      505 of title 23.
                    ``(E) Focused research.--The Secretary shall make a 
                grant to 1 of the 10 regional university transportation

[[Page 126 STAT. 886]]

                centers established under this paragraph for the purpose 
                of furthering the objectives described in subsection 
                (a)(2) in the field of comprehensive transportation 
                safety.
            ``(4) Tier 1 university transportation centers.--
                    ``(A) In general.--The Secretary shall provide 
                grants of $1,500,000 each to not more than 20 recipients 
                to carry out this paragraph.
                    ``(B) Restriction.--A lead institution of a 
                consortium that receives a grant under paragraph (2) or 
                (3) shall not be eligible to receive a grant under this 
                paragraph.
                    ``(C) Matching requirement.--
                          ``(i) In general.--Subject to clause (iii), as 
                      a condition of receiving a grant under this 
                      paragraph, a grant recipient shall match 50 
                      percent of the amounts made available under the 
                      grant.
                          ``(ii) Sources.--The matching amounts referred 
                      to in clause (i) may include amounts made 
                      available to the recipient under section 504(b) or 
                      505 of title 23.
                          ``(iii) Exemption.--This subparagraph shall 
                      not apply on a demonstration of financial hardship 
                      by the applicant institution.
                    ``(D) Focused research.--In awarding grants under 
                this paragraph, consideration shall be given to minority 
                institutions, as defined by section 365 of the Higher 
                Education Act of 1965 (20 U.S.C. 1067k), or consortia 
                that include such institutions that have demonstrated an 
                ability in transportation-related research.

    ``(d) Program Coordination.--
            ``(1) In general.--The Secretary shall--
                    ``(A) coordinate the research, education, and 
                technology transfer activities carried out by grant 
                recipients under this section; and
                    ``(B) disseminate the results of that research 
                through the establishment and operation of an 
                information clearinghouse.
            ``(2) Annual review and evaluation.--Not less frequently 
        than annually, and consistent with the plan developed under 
        section 508 of title 23, the Secretary shall--
                    ``(A) review and evaluate the programs carried out 
                under this section by grant recipients; and
                    ``(B) <<NOTE: Reports.>>  submit to the Committees 
                on Transportation and Infrastructure and Science, Space, 
                and Technology of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                a report describing that review and evaluation.
            ``(3) Program evaluation and oversight.--For each of fiscal 
        years 2013 and 2014, the Secretary shall expend not more than 
        1\1/2\ percent of the amounts made available to the Secretary to 
        carry out this section for any coordination, evaluation, and 
        oversight activities of the Secretary under this section.

    ``(e) <<NOTE: Time period.>>  Limitation on Availability of 
Amounts.--Amounts made available to the Secretary to carry out this 
section shall remain available for obligation by the Secretary for a 
period of 3 years after the last day of the fiscal year for which the 
amounts are appropriated.

    ``(f) Information Collection.--Any survey, questionnaire, or 
interview that the Secretary determines to be necessary to carry

[[Page 126 STAT. 887]]

out reporting requirements relating to any program assessment or 
evaluation activity under this section, including customer satisfaction 
assessments, shall not be subject to chapter 35 of title 44.''.
    (b) Conforming Amendment.--The analysis for chapter 55 of title 49, 
United States Code, is amended by striking the item relating to section 
5505 and inserting the following:

``5505. University transportation centers program.''.

SEC. 52010. UNIVERSITY TRANSPORTATION RESEARCH.

    (a) <<NOTE: Repeal.>>  In General.--Section 5506 of title 49, United 
States Code, is repealed.

    (b) Conforming Amendment.--The analysis for chapter 55 of title 49, 
United States Code, is amended by striking the item relating to section 
5506.
SEC. 52011. BUREAU OF TRANSPORTATION STATISTICS.

    (a) In General.--Subtitle III of title 49, United States Code, is 
amended by adding at the end the following:

            ``CHAPTER 63--BUREAU OF TRANSPORTATION STATISTICS

``Sec.
``6301. Definitions.
``6302. Bureau of Transportation Statistics.
``6303. Intermodal transportation database.
``6304. National Transportation Library.
``6305. Advisory council on transportation statistics.
``6306. Transportation statistical collection, analysis, and 
           dissemination.
``6307. Furnishing of information, data, or reports by Federal agencies.
``6308. Proceeds of data product sales.
``6309. National transportation atlas database.
``6310. Limitations on statutory construction.
``6311. Research and development grants.
``6312. Transportation statistics annual report.
``6313. Mandatory response authority for freight data collection.

``Sec. 6301. Definitions

    ``In this chapter, the following definitions apply:
            ``(1) Bureau.--The term `Bureau' means the Bureau of 
        Transportation Statistics established by section 6302(a).
            ``(2) Department.--The term `Department' means the 
        Department of Transportation.
            ``(3) Director.--The term `Director' means the Director of 
        the Bureau.
            ``(4) Library.--The term `Library' means the National 
        Transportation Library established by section 6304(a).
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
``Sec. 6302. Bureau of Transportation Statistics

    ``(a) Establishment.--There is established in the Research and 
Innovative Technology Administration the Bureau of Transportation 
Statistics.
    ``(b) Director.--
            ``(1) Appointment.--The Bureau shall be headed by a 
        Director, who shall be appointed in the competitive service by 
        the Secretary.
            ``(2) Qualifications.--The Director shall be appointed from 
        among individuals who are qualified to serve as the Director

[[Page 126 STAT. 888]]

        by virtue of their training and experience in the collection, 
        analysis, and use of transportation statistics.
            ``(3) Duties.--
                    ``(A) In general.--The Director shall--
                          ``(i) serve as the senior advisor to the 
                      Secretary on data and statistics; and
                          ``(ii) be responsible for carrying out the 
                      duties described in subparagraph (B).
                    ``(B) Duties.--The Director shall--
                          ``(i) ensure that the statistics compiled 
                      under clause (vi) are designed to support 
                      transportation decisionmaking by--
                                    ``(I) the Federal Government;
                                    ``(II) State and local governments;
                                    ``(III) metropolitan planning 
                                organizations;
                                    ``(IV) transportation-related 
                                associations;
                                    ``(V) the private sector, including 
                                the freight community; and
                                    ``(VI) the public;
                          ``(ii) establish on behalf of the Secretary a 
                      program--
                                    ``(I) to effectively integrate 
                                safety data across modes; and
                                    ``(II) to address gaps in existing 
                                safety data programs of the Department;
                          ``(iii) work with the operating 
                      administrations of the Department--
                                    ``(I) to establish and implement the 
                                data programs of the Bureau; and
                                    ``(II) to improve the coordination 
                                of information collection efforts with 
                                other Federal agencies;
                          ``(iv) continually improve surveys and data 
                      collection methods of the Department to improve 
                      the accuracy and utility of transportation 
                      statistics;
                          ``(v) encourage the standardization of data, 
                      data collection methods, and data management and 
                      storage technologies for data collected by--
                                    ``(I) the Bureau;
                                    ``(II) the operating administrations 
                                of the Department;
                                    ``(III) State and local governments;
                                    ``(IV) metropolitan planning 
                                organizations; and
                                    ``(V) private sector entities;
                          ``(vi) collect, compile, analyze, and publish 
                      a comprehensive set of transportation statistics 
                      on the performance and impacts of the national 
                      transportation system, including statistics on--
                                    ``(I) transportation safety across 
                                all modes and intermodally;
                                    ``(II) the state of good repair of 
                                United States transportation 
                                infrastructure;
                                    ``(III) the extent, connectivity, 
                                and condition of the transportation 
                                system, building on the national 
                                transportation atlas database developed 
                                under section 6310;
                                    ``(IV) economic efficiency across 
                                the entire transportation sector;

[[Page 126 STAT. 889]]

                                    ``(V) the effects of the 
                                transportation system on global and 
                                domestic economic competitiveness;
                                    ``(VI) demographic, economic, and 
                                other variables influencing travel 
                                behavior, including choice of 
                                transportation mode and goods movement;
                                    ``(VII) transportation-related 
                                variables that influence the domestic 
                                economy and global competitiveness;
                                    ``(VIII) economic costs and impacts 
                                for passenger travel and freight 
                                movement;
                                    ``(IX) intermodal and multimodal 
                                passenger movement;
                                    ``(X) intermodal and multimodal 
                                freight movement; and
                                    ``(XI) consequences of 
                                transportation for the human and natural 
                                environment;
                          ``(vii) <<NOTE: Dissemination.>>  build and 
                      disseminate the transportation layer of the 
                      National Spatial Data Infrastructure developed 
                      under Executive Order 12906 (59 Fed. Reg. 17671) 
                      (or a successor Executive Order), including by 
                      coordinating the development of transportation 
                      geospatial data standards, compiling intermodal 
                      geospatial data, and collecting geospatial data 
                      that is not being collected by other entities;
                          ``(viii) <<NOTE: Guidelines.>>  issue 
                      guidelines for the collection of information by 
                      the Department that the Director determines 
                      necessary to develop transportation statistics and 
                      carry out modeling, economic assessment, and 
                      program assessment activities to ensure that such 
                      information is accurate, reliable, relevant, 
                      uniform, and in a form that permits systematic 
                      analysis by the Department;
                          ``(ix) <<NOTE: Review. Reports.>>  review and 
                      report to the Secretary on the sources and 
                      reliability of--
                                    ``(I) the statistics proposed by the 
                                heads of the operating administrations 
                                of the Department to measure outputs and 
                                outcomes as required by the Government 
                                Performance and Results Act of 1993 
                                (Public Law 103-62;107 Stat. 285); and
                                    ``(II) at the request of the 
                                Secretary, any other data collected or 
                                statistical information published by the 
                                heads of the operating administrations 
                                of the Department; and
                          ``(x) ensure that the statistics published 
                      under this section are readily accessible to the 
                      public, consistent with applicable security 
                      constraints and confidentiality interests.

    ``(c) Access to Federal Data.--In carrying out subsection 
(b)(3)(B)(ii), the Director shall be given access to all safety data 
that the Director determines necessary to carry out that subsection that 
is held by the Department or any other Federal agency upon written 
request and subject to any statutory or regulatory restrictions.

[[Page 126 STAT. 890]]

``Sec. 6303. Intermodal transportation database

    ``(a) In General.--In consultation with the Under Secretary 
Transportation for Policy, the Assistant Secretaries of the Department, 
and the heads of the operating administrations of the Department, the 
Director shall establish and maintain a transportation database for all 
modes of transportation.
    ``(b) Use.--The database established under this section shall be 
suitable for analyses carried out by the Federal Government, the States, 
and metropolitan planning organizations.
    ``(c) Contents.--The database established under this section shall 
include--
            ``(1) information on the volumes and patterns of movement of 
        goods, including local, interregional, and international 
        movement, by all modes of transportation, intermodal 
        combinations, and relevant classification;
            ``(2) information on the volumes and patterns of movement of 
        people, including local, interregional, and international 
        movements, by all modes of transportation (including bicycle and 
        pedestrian modes), intermodal combinations, and relevant 
        classification;
            ``(3) information on the location and connectivity of 
        transportation facilities and services; and
            ``(4) a national accounting of expenditures and capital 
        stocks on each mode of transportation and intermodal 
        combination.
``Sec. 6304. National Transportation Library

    ``(a) Purpose and Establishment.--To support the information 
management and decisionmaking needs of transportation officials at the 
Federal, State, and local levels, there is established in the Bureau a 
National Transportation Library which shall--
            ``(1) be headed by an individual who is highly qualified in 
        library and information science;
            ``(2) acquire, preserve, and manage transportation 
        information and information products and services for use by the 
        Department, other Federal agencies, and the general public;
            ``(3) provide reference and research assistance;
            ``(4) serve as a central depository for research results and 
        technical publications of the Department;
            ``(5) provide a central clearinghouse for transportation 
        data and information of the Federal Government;
            ``(6) serve as coordinator and policy lead for 
        transportation information access;
            ``(7) provide transportation information and information 
        products and services to--
                    ``(A) the Department;
                    ``(B) other Federal agencies;
                    ``(C) public and private organizations; and
                    ``(D) individuals, within the United States and 
                internationally;
            ``(8) coordinate efforts among, and cooperate with, 
        transportation libraries, information providers, and technical 
        assistance centers, in conjunction with private industry and 
        other transportation library and information centers, with the 
        goal of developing a comprehensive transportation information 
        and knowledge network that supports the activities described in 
        section 6302(b)(3)(B)(vi); and

[[Page 126 STAT. 891]]

            ``(9) engage in such other activities as the Director 
        determines to be necessary and as the resources of the Library 
        permit.

    ``(b) Access.--The Director shall publicize, facilitate, and promote 
access to the information products and services described in subsection 
(a), to improve the ability of the transportation community to share 
information and the ability of the Director to make statistics and other 
information readily accessible as required under section 
6302(b)(3)(B)(x).
    ``(c) Agreements.--
            ``(1) In general.--To carry out this section, the Director 
        may enter into agreements with, award grants to, and receive 
        amounts from, any--
                    ``(A) State or local government;
                    ``(B) organization;
                    ``(C) business; or
                    ``(D) individual.
            ``(2) Contracts, grants, and agreements.--The Library may 
        initiate and support specific information and data management, 
        access, and exchange activities in connection with matters 
        relating to the Department's strategic goals, knowledge 
        networking, and national and international cooperation, by 
        entering into contracts or other agreements or awarding grants 
        for the conduct of such activities.
            ``(3) Amounts.--Any amounts received by the Library as 
        payment for library products and services or other activities 
        shall be made available to the Director to carry out this 
        section, deposited in the Research and Innovative Technology 
        Administration's general fund account, and remain available 
        until expended.
``Sec. 6305. Advisory council on transportation statistics

    ``(a) <<NOTE: Establishment. Consultation.>> In General.--The 
Director shall establish and consult with an advisory council on 
transportation statistics.

    ``(b) Function.--The advisory council established under this section 
shall advise the Director on--
            ``(1) the quality, reliability, consistency, objectivity, 
        and relevance of transportation statistics and analyses 
        collected, supported, or disseminated by the Bureau and the 
        Department; and
            ``(2) methods to encourage cooperation and interoperability 
        of transportation data collected by the Bureau, the operating 
        administrations of the Department, States, local governments, 
        metropolitan planning organizations, and private sector 
        entities.

    ``(c) Membership.--
            ``(1) In general.--The advisory council shall be composed of 
        not fewer than 9 and not more than 11 members appointed by the 
        Director.
            ``(2) Selection.--In selecting members for the advisory 
        council, the Director shall appoint individuals who--
                    ``(A) are not officers or employees of the United 
                States;
                    ``(B) possess expertise in--
                          ``(i) transportation data collection, 
                      analysis, or application;
                          ``(ii) economics; or
                          ``(iii) transportation safety; and

[[Page 126 STAT. 892]]

                    ``(C) represent a cross section of transportation 
                stakeholders, to the greatest extent possible.

    ``(d) Terms of Appointment.--
            ``(1) In general.--Except as provided in paragraph (2), 
        members of the advisory council shall be appointed to staggered 
        terms not to exceed 3 years.
            ``(2) Additional terms.--A member may be renominated for 1 
        additional 3-year term.
            ``(3) Current members.--A member serving on an advisory 
        council on transportation statistics on the day before the date 
        of enactment of the Transportation Research and Innovative 
        Technology Act of 2012 shall serve until the end of the 
        appointed term of the member.

    ``(e) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall apply to the advisory 
council established under this section, except that section 14 of that 
Act shall not apply.
``Sec. 6306. Transportation statistical collection, analysis, and 
                  dissemination

    ``To ensure that all transportation statistical collection, 
analysis, and dissemination is carried out in a coordinated manner, the 
Director may--
            ``(1) use the services, equipment, records, personnel, 
        information, and facilities of other Federal agencies, or State, 
        local, and private agencies and instrumentalities, subject to 
        the conditions that the applicable agency or instrumentality 
        consents to that use and with or without reimbursement for such 
        use;
            ``(2) enter into agreements with the agencies and 
        instrumentalities described in paragraph (1) for purposes of 
        data collection and analysis;
            ``(3) confer and cooperate with foreign governments, 
        international organizations, and State, municipal, and other 
        local agencies;
            ``(4) request such information, data, and reports from any 
        Federal agency as the Director determines necessary to carry out 
        this chapter;
            ``(5) encourage replication, coordination, and sharing of 
        information among transportation agencies regarding information 
        systems, information policy, and data; and
            ``(6) confer and cooperate with Federal statistical agencies 
        as the Director determines necessary to carry out this chapter, 
        including by entering into cooperative data sharing agreements 
        in conformity with all laws and regulations applicable to the 
        disclosure and use of data.
``Sec. 6307. Furnishing of information, data, or reports by 
                  Federal agencies

    ``(a) In General.--Except as provided in subsection (b), a Federal 
agency requested to furnish information, data, or reports by the 
Director under section 6302(b)(3)(B) shall provide the information to 
the Director.
    ``(b) Prohibition on Certain Disclosures.--
            ``(1) In general.--An officer, employee, or contractor of 
        the Bureau may not--

[[Page 126 STAT. 893]]

                    ``(A) make any disclosure in which the data provided 
                by an individual or organization under section 
                6302(b)(3)(B) can be identified;
                    ``(B) use the information provided under section 
                6302(b)(3)(B) for a nonstatistical purpose; or
                    ``(C) permit anyone other than an individual 
                authorized by the Director to examine any individual 
                report provided under section 6302(b)(3)(B).
            ``(2) Copies of reports.--
                    ``(A) In general.--No department, bureau, agency, 
                officer, or employee of the United States (except the 
                Director in carrying out this chapter) may require, for 
                any reason, a copy of any report that has been filed 
                under section 6302(b)(3)(B) with the Bureau or retained 
                by an individual respondent.
                    ``(B) Limitation on judicial proceedings.--A copy of 
                a report described in subparagraph (A) that has been 
                retained by an individual respondent or filed with the 
                Bureau or any of the employees, contractors, or agents 
                of the Bureau--
                          ``(i) shall be immune from legal process; and
                          ``(ii) shall not, without the consent of the 
                      individual concerned, be admitted as evidence or 
                      used for any purpose in any action, suit, or other 
                      judicial or administrative proceedings.
                    ``(C) Applicability.--This paragraph shall apply 
                only to reports that permit information concerning an 
                individual or organization to be reasonably determined 
                by direct or indirect means.
            ``(3) Informing respondent of use of data.--If the Bureau is 
        authorized by statute to collect data or information for a 
        nonstatistical purpose, the Director shall clearly distinguish 
        the collection of the data or information, by rule and on the 
        collection instrument, in a manner that informs the respondent 
        who is requested or required to supply the data or information 
        of the nonstatistical purpose.

    ``(c) Transportation and Transportation-related Data Access.--The 
Director shall be provided access to any transportation and 
transportation-related information in the possession of any Federal 
agency, except--
            ``(1) information that is expressly prohibited by law from 
        being disclosed to another Federal agency; or
            ``(2) information that the agency possessing the information 
        determines could not be disclosed without significantly 
        impairing the discharge of authorities and responsibilities 
        which have been delegated to, or vested by law, in such agency.
``Sec. 6308. Proceeds of data product sales

    ``Notwithstanding section 3302 of title 31, amounts received by the 
Bureau from the sale of data products for necessary expenses incurred 
may be credited to the Highway Trust Fund (other than the Mass Transit 
Account) for the purpose of reimbursing the Bureau for those expenses.

[[Page 126 STAT. 894]]

``Sec. 6309. National transportation atlas database

    ``(a) In General.--The Director shall develop and maintain a 
national transportation atlas database that is comprised of geospatial 
databases that depict--
            ``(1) transportation networks;
            ``(2) flows of people, goods, vehicles, and craft over the 
        transportation networks; and
            ``(3) social, economic, and environmental conditions that 
        affect or are affected by the transportation networks.

    ``(b) Intermodal Network Analysis.--The databases referred to in 
subsection (a) shall be capable of supporting intermodal network 
analysis.
``Sec. 6310. Limitations on statutory construction

    ``Nothing in this chapter--
            ``(1) authorizes the Bureau to require any other Federal 
        agency to collect data; or
            ``(2) alters or diminishes the authority of any other 
        officer of the Department to collect and disseminate data 
        independently.
``Sec. 6311. Research and development grants

    ``The Secretary may make grants to, or enter into cooperative 
agreements or contracts with, public and nonprofit private entities 
(including State transportation departments, metropolitan planning 
organizations, and institutions of higher education) for--
            ``(1) investigation of the subjects described in section 
        6302(b)(3)(B)(vi);
            ``(2) research and development of new methods of data 
        collection, standardization, management, integration, 
        dissemination, interpretation, and analysis;
            ``(3) demonstration programs by States, local governments, 
        and metropolitan planning organizations to coordinate data 
        collection, reporting, management, storage, and archiving to 
        simplify data comparisons across jurisdictions;
            ``(4) development of electronic clearinghouses of 
        transportation data and related information, as part of the 
        Library; and
            ``(5) development and improvement of methods for sharing 
        geographic data, in support of the database under section 6310 
        and the National Spatial Data Infrastructure developed under 
        Executive Order 12906 (59 Fed. Reg. 17671) (or a successor 
        Executive Order).
``Sec. 6312. Transportation statistics annual report

    ``The Director shall submit to the President and Congress a 
transportation statistics annual report, which shall include--
            ``(1) information on the progress of the Director in 
        carrying out the duties described in section 6302(b)(3)(B);
            ``(2) documentation of the methods used to obtain and ensure 
        the quality of the statistics presented in the report; and
            ``(3) any recommendations of the Director for improving 
        transportation statistical information.

[[Page 126 STAT. 895]]

``Sec. 6313. Mandatory response authority for freight data 
                  collection

    ``(a) Freight Data Collection.--
            ``(1) In general.--An owner, official, agent, person in 
        charge, or assistant to the person in charge of a freight 
        corporation, company, business, institution, establishment, or 
        organization described in paragraph (2) shall be fined in 
        accordance with subsection (b) if that individual neglects or 
        refuses, when requested by the Director or other authorized 
        officer, employee, or contractor of the Bureau to submit data 
        under section 6302(b)(3)(B)--
                    ``(A) to answer completely and correctly to the best 
                knowledge of that individual all questions relating to 
                the corporation, company, business, institution, 
                establishment, or other organization; or
                    ``(B) to make available records or statistics in the 
                official custody of the individual.
            ``(2) Description of entities.--A freight corporation, 
        company, business, institution, establishment, or organization 
        referred to in paragraph (1) is a corporation, company, 
        business, institution, establishment, or organization that--
                    ``(A) receives Federal funds relating to the freight 
                program; and
                    ``(B) has consented to be subject to a fine under 
                this subsection on--
                          ``(i) refusal to supply any data requested; or
                          ``(ii) failure to respond to a written 
                      request.

    ``(b) Fines.--
            ``(1) In general.--Subject to paragraph (2), an individual 
        described in subsection (a) shall be fined not more than $500.
            ``(2) Willful actions.--If an individual willfully gives a 
        false answer to a question described in subsection (a)(1), the 
        individual shall be fined not more than $10,000.''.

    (b) <<NOTE: Applicability. 49 USC 6301 note.>> Rules of 
Construction.--If the provisions of section 111 of title 49, United 
States Code, are transferred to chapter 63 of that title, the following 
rules of construction apply:
            (1) For purposes of determining whether 1 provision of law 
        supersedes another based on enactment later in time, a chapter 
        63 provision is deemed to have been enacted on the date of 
        enactment of the corresponding section 111 provision.
            (2) A reference to a section 111 provision, including a 
        reference in a regulation, order, or other law, is deemed to 
        refer to the corresponding chapter 63 provision.
            (3) A regulation, order, or other administrative action in 
        effect under a section 111 provision continues in effect under 
        the corresponding chapter 63 provision.
            (4) An action taken or an offense committed under a section 
        111 provision is deemed to have been taken or committed under 
        the corresponding chapter 63 provision.

    (c) Conforming Amendments.--
            (1) Repeal.--Section 111 of title 49, United States Code, is 
        repealed, and the item relating to section 111 in the analysis 
        for chapter 1 of that title is deleted.
            (2) Analysis for subtitle iii.--The analysis for subtitle 
        III of title 49, United States Code, is amended by inserting 
        after the items for chapter 61 the following:

[[Page 126 STAT. 896]]

          ``Chapter 63--Bureau of Transportation Statistics.''.

SEC. 52012. ADMINISTRATIVE AUTHORITY.

    Section 112 of title 49, United States Code, is amended by adding at 
the end the following:
    ``(f) Program Evaluation and Oversight.--For each of fiscal years 
2013 and 2014, the Administrator is authorized to expend not more than 
1\1/2\ percent of the amounts authorized to be appropriated for 
necessary expenses for administration and operations of the Research and 
Innovative Technology Administration for the coordination, evaluation, 
and oversight of the programs administered by the Administration.
    ``(g) Collaborative Research and Development.--
            ``(1) In general.--To encourage innovative solutions to 
        multimodal transportation problems and stimulate the deployment 
        of new technology, the Administrator may carry out, on a cost-
        shared basis, collaborative research and development with--
                    ``(A) non-Federal entities, including State and 
                local governments, foreign governments, institutions of 
                higher education, corporations, institutions, 
                partnerships, sole proprietorships, and trade 
                associations that are incorporated or established under 
                the laws of any State;
                    ``(B) Federal laboratories; and
                    ``(C) other Federal agencies.
            ``(2) Cooperation, grants, contracts, and agreements.--
        Notwithstanding any other provision of law, the Administrator 
        may directly initiate contracts, grants, cooperative research 
        and development agreements (as defined in section 12 of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3710a)), and other agreements to fund, and accept funds from, 
        the Transportation Research Board of the National Research 
        Council of the National Academy of Sciences, State departments 
        of transportation, cities, counties, institutions of higher 
        education, associations, and the agents of those entities to 
        carry out joint transportation research and technology efforts.
            ``(3) Federal share.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Federal share of the cost of an activity carried out 
                under paragraph (2) shall not exceed 50 percent.
                    ``(B) Exception.--If the Secretary determines that 
                the activity is of substantial public interest or 
                benefit, the Secretary may approve a greater Federal 
                share.
                    ``(C) Non-federal share.--All costs directly 
                incurred by the non-Federal partners, including 
                personnel, travel, facility, and hardware development 
                costs, shall be credited toward the non-Federal share of 
                the cost of an activity described in subparagraph (A).
            ``(4) Use of technology.--The research, development, or use 
        of a technology under a contract, grant, cooperative research 
        and development agreement, or other agreement entered into under 
        this subsection, including the terms under which the technology 
        may be licensed and the resulting royalties may be distributed, 
        shall be subject to the Stevenson-Wydler Technology Innovation 
        Act of 1980 (15 U.S.C. 3701 et seq.).

[[Page 126 STAT. 897]]

            ``(5) Waiver of advertising requirements.--Section 6101 of 
        title 41 shall not apply to a contract, grant, or other 
        agreement entered into under this section.''.
SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC 
                            PLANNING.

    Section 508(a) of title 23, United States Code, is amended--
            (1) in paragraph (1), by striking ``SAFETEA-LU'' and 
        inserting ``Transportation Research and Innovative Technology 
        Act of 2012''; and
            (2) in paragraph (2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) describe the primary purposes of the 
                transportation research and development program, which 
                shall include, at a minimum--
                          ``(i) promoting safety;
                          ``(ii) reducing congestion and improving 
                      mobility;
                          ``(iii) preserving the environment;
                          ``(iv) preserving the existing transportation 
                      system;
                          ``(v) improving the durability and extending 
                      the life of transportation infrastructure; and
                          ``(vi) improving goods movement.''.

         TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES.

    Section 513 of title 23, United States Code, is amended to read as 
follows:
``Sec. 513. Use of funds for ITS activities

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        State or local government, tribal government, transit agency, 
        public toll authority, metropolitan planning organization, other 
        political subdivision of a State or local government, or a 
        multistate or multijurisdictional group applying through a 
        single lead applicant.
            ``(2) Multijurisdictional group.--The term 
        `multijurisdictional group' means a combination of State 
        governments, local governments, metropolitan planning agencies, 
        transit agencies, or other political subdivisions of a State 
        that--
                    ``(A) have signed a written agreement to implement 
                an activity that meets the grant criteria under this 
                section; and
                    ``(B) is comprised of at least 2 members, each of 
                whom is an eligible entity.

    ``(b) Purpose.--The purpose of this section is to develop, 
administer, communicate, and promote the use of products of research, 
technology, and technology transfer programs.
    ``(c) ITS Adoption.--
            ``(1) Innovative technologies and strategies.--The Secretary 
        shall encourage the deployment of ITS technologies that will 
        improve the performance of the National Highway System in such 
        areas as traffic operations, emergency response, incident

[[Page 126 STAT. 898]]

        management, surface transportation network management, freight 
        management, traffic flow information, and congestion management 
        by accelerating the adoption of innovative technologies through 
        the use of--
                    ``(A) demonstration programs;
                    ``(B) grant funding;
                    ``(C) incentives to eligible entities; and
                    ``(D) other tools, strategies, or methods that will 
                result in the deployment of innovative ITS technologies.
            ``(2) Comprehensive plan.--To carry out this section, the 
        Secretary shall develop a detailed and comprehensive plan that 
        addresses the manner in which incentives may be adopted, as 
        appropriate, through the existing deployment activities carried 
        out by surface transportation modal administrations.''.
SEC. 53002. GOALS AND PURPOSES.

    (a) In General.--Chapter 5 of title 23, United States Code, is 
amended by adding after section 513 the following:
``Sec. 514. Goals and purposes

    ``(a) Goals.--The goals of the intelligent transportation system 
program include--
            ``(1) enhancement of surface transportation efficiency and 
        facilitation of intermodalism and international trade to enable 
        existing facilities to meet a significant portion of future 
        transportation needs, including public access to employment, 
        goods, and services and to reduce regulatory, financial, and 
        other transaction costs to public agencies and system users;
            ``(2) achievement of national transportation safety goals, 
        including enhancement of safe operation of motor vehicles and 
        nonmotorized vehicles and improved emergency response to 
        collisions, with particular emphasis on decreasing the number 
        and severity of collisions;
            ``(3) protection and enhancement of the natural environment 
        and communities affected by surface transportation, with 
        particular emphasis on assisting State and local governments to 
        achieve national environmental goals;
            ``(4) accommodation of the needs of all users of surface 
        transportation systems, including operators of commercial motor 
        vehicles, passenger motor vehicles, motorcycles, bicycles, and 
        pedestrians (including individuals with disabilities); and
            ``(5) enhancement of national defense mobility and 
        improvement of the ability of the United States to respond to 
        security-related or other manmade emergencies and natural 
        disasters.

    ``(b) Purposes.--The Secretary shall implement activities under the 
intelligent transportation system program, at a minimum--
            ``(1) to expedite, in both metropolitan and rural areas, 
        deployment and integration of intelligent transportation systems 
        for consumers of passenger and freight transportation;
            ``(2) to ensure that Federal, State, and local 
        transportation officials have adequate knowledge of intelligent 
        transportation systems for consideration in the transportation 
        planning process;
            ``(3) to improve regional cooperation and operations 
        planning for effective intelligent transportation system 
        deployment;
            ``(4) to promote the innovative use of private resources in 
        support of intelligent transportation system development;

[[Page 126 STAT. 899]]

            ``(5) to facilitate, in cooperation with the motor vehicle 
        industry, the introduction of vehicle-based safety enhancing 
        systems;
            ``(6) to support the application of intelligent 
        transportation systems that increase the safety and efficiency 
        of commercial motor vehicle operations;
            ``(7) to develop a workforce capable of developing, 
        operating, and maintaining intelligent transportation systems;
            ``(8) to provide continuing support for operations and 
        maintenance of intelligent transportation systems; and
            ``(9) to ensure a systems approach that includes cooperation 
        among vehicles, infrastructure, and users.''.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by adding after the item relating to 
section 513 the following:

``514. Goals and purposes.''.

SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) In General.--Chapter 5 of title 23, United States Code, is 
amended by adding after section 514 (as added by section 53002) the 
following:
``Sec. 515. General authorities and requirements

    ``(a) Scope.--Subject to the provisions of this chapter, the 
Secretary shall conduct an ongoing intelligent transportation system 
program--
            ``(1) to research, develop, and operationally test 
        intelligent transportation systems; and
            ``(2) to provide technical assistance in the nationwide 
        application of those systems as a component of the surface 
        transportation systems of the United States.

    ``(b) Policy.--Intelligent transportation system research projects 
and operational tests funded pursuant to this chapter shall encourage 
and not displace public-private partnerships or private sector 
investment in those tests and projects.
    ``(c) Cooperation With Governmental, Private, and Educational 
Entities.--The Secretary shall carry out the intelligent transportation 
system program in cooperation with State and local governments and other 
public entities, the private sector firms of the United States, the 
Federal laboratories, and institutions of higher education, including 
historically Black colleges and universities and other minority 
institutions of higher education.
    ``(d) Consultation With Federal Officials.--In carrying out the 
intelligent transportation system program, the Secretary shall consult 
with the heads of other Federal agencies, as appropriate.
    ``(e) Technical Assistance, Training, and Information.--The 
Secretary may provide technical assistance, training, and information to 
State and local governments seeking to implement, operate, maintain, or 
evaluate intelligent transportation system technologies and services.
    ``(f) Transportation Planning.--The Secretary may provide funding to 
support adequate consideration of transportation systems management and 
operations, including intelligent transportation systems, within 
metropolitan and statewide transportation planning processes.
    ``(g) Information Clearinghouse.--
            ``(1) In general.--The Secretary shall--

[[Page 126 STAT. 900]]

                    ``(A) maintain a repository for technical and safety 
                data collected as a result of federally sponsored 
                projects carried out under this chapter; and
                    ``(B) make, on request, that information (except for 
                proprietary information and data) readily available to 
                all users of the repository at an appropriate cost.
            ``(2) Agreement.--
                    ``(A) In general.--The Secretary may enter into an 
                agreement with a third party for the maintenance of the 
                repository for technical and safety data under paragraph 
                (1)(A).
                    ``(B) Federal financial assistance.--If the 
                Secretary enters into an agreement with an entity for 
                the maintenance of the repository, the entity shall be 
                eligible for Federal financial assistance under this 
                section.
            ``(3) Availability of information.--Information in the 
        repository shall not be subject to sections 552 and 555 of title 
        5, United States Code.

    ``(h) Advisory Committee.--
            ``(1) <<NOTE: Establishment.>> In general.--The Secretary 
        shall establish an Advisory Committee to advise the Secretary on 
        carrying out this chapter.
            ``(2) Membership.--The Advisory Committee shall have no more 
        than 20 members, be balanced between metropolitan and rural 
        interests, and include, at a minimum--
                    ``(A) a representative from a State highway 
                department;
                    ``(B) a representative from a local highway 
                department who is not from a metropolitan planning 
                organization;
                    ``(C) a representative from a State, local, or 
                regional transit agency;
                    ``(D) a representative from a metropolitan planning 
                organization;
                    ``(E) a private sector user of intelligent 
                transportation system technologies;
                    ``(F) an academic researcher with expertise in 
                computer science or another information science field 
                related to intelligent transportation systems, and who 
                is not an expert on transportation issues;
                    ``(G) an academic researcher who is a civil 
                engineer;
                    ``(H) an academic researcher who is a social 
                scientist with expertise in transportation issues;
                    ``(I) a representative from a nonprofit group 
                representing the intelligent transportation system 
                industry;
                    ``(J) a representative from a public interest group 
                concerned with safety;
                    ``(K) a representative from a public interest group 
                concerned with the impact of the transportation system 
                on land use and residential patterns; and
                    ``(L) members with expertise in planning, safety, 
                telecommunications, utilities, and operations.
            ``(3) Duties.--The Advisory Committee shall, at a minimum, 
        perform the following duties:
                    ``(A) Provide input into the development of the 
                intelligent transportation system aspects of the 
                strategic plan under section 508.

[[Page 126 STAT. 901]]

                    ``(B) Review, at least annually, areas of 
                intelligent transportation systems research being 
                considered for funding by the Department, to determine--
                          ``(i) whether these activities are likely to 
                      advance either the state-of-the-practice or state-
                      of-the-art in intelligent transportation systems;
                          ``(ii) whether the intelligent transportation 
                      system technologies are likely to be deployed by 
                      users, and if not, to determine the barriers to 
                      deployment; and
                          ``(iii) the appropriate roles for government 
                      and the private sector in investing in the 
                      research and technologies being considered.
            ``(4) Report.--Not later than February 1 of each year after 
        the date of enactment of the Transportation Research and 
        Innovative Technology Act of 2012, the Secretary shall submit to 
        Congress a report that includes--
                    ``(A) all recommendations made by the Advisory 
                Committee during the preceding calendar year;
                    ``(B) an explanation of the manner in which the 
                Secretary has implemented those recommendations; and
                    ``(C) for recommendations not implemented, the 
                reasons for rejecting the recommendations.
            ``(5) Applicability of federal advisory committee act.--The 
        Advisory Committee shall be subject to the Federal Advisory 
        Committee Act (5 U.S.C. App.).

    ``(i) Reporting.--
            ``(1) Guidelines and requirements.--
                    ``(A) In general.--The Secretary shall issue 
                guidelines and requirements for the reporting and 
                evaluation of operational tests and deployment projects 
                carried out under this chapter.
                    ``(B) Objectivity and independence.--The guidelines 
                and requirements issued under subparagraph (A) shall 
                include provisions to ensure the objectivity and 
                independence of the reporting entity so as to avoid any 
                real or apparent conflict of interest or potential 
                influence on the outcome by parties to any such test or 
                deployment project or by any other formal evaluation 
                carried out under this chapter.
                    ``(C) Funding.--The guidelines and requirements 
                issued under subparagraph (A) shall establish reporting 
                funding levels based on the size and scope of each test 
                or project that ensure adequate reporting of the results 
                of the test or project.
            ``(2) Special rule.--Any survey, questionnaire, or interview 
        that the Secretary considers necessary to carry out the 
        reporting of any test, deployment project, or program assessment 
        activity under this chapter shall not be subject to chapter 35 
        of title 44, United States Code.''.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by adding after the item relating to 
section 514 (as added by section 53002) the following:

``515. General authorities and requirements.''.

[[Page 126 STAT. 902]]

SEC. 53004. RESEARCH AND DEVELOPMENT.

    (a) In General.--Chapter 5 of title 23, United States Code, is 
amended by adding after section 515 (as added by section 53003) the 
following:
``Sec. 516. Research and development

    ``(a) In General.--The Secretary shall carry out a comprehensive 
program of intelligent transportation system research and development, 
and operational tests of intelligent vehicles, intelligent 
infrastructure systems, and other similar activities that are necessary 
to carry out this chapter.
    ``(b) Priority Areas.--Under the program, the Secretary shall give 
higher priority to funding projects that--
            ``(1) enhance mobility and productivity through improved 
        traffic management, incident management, transit management, 
        freight management, road weather management, toll collection, 
        traveler information, or highway operations systems and remote 
        sensing products;
            ``(2) use interdisciplinary approaches to develop traffic 
        management strategies and tools to address multiple impacts of 
        congestion concurrently;
            ``(3) address traffic management, incident management, 
        transit management, toll collection traveler information, or 
        highway operations systems;
            ``(4) incorporate research on the potential impact of 
        environmental, weather, and natural conditions on intelligent 
        transportation systems, including the effects of cold climates;
            ``(5) enhance intermodal use of intelligent transportation 
        systems for diverse groups, including for emergency and health-
        related services;
            ``(6) enhance safety through improved crash avoidance and 
        protection, crash and other notification, commercial motor 
        vehicle operations, and infrastructure-based or cooperative 
        safety systems; or
            ``(7) facilitate the integration of intelligent 
        infrastructure, vehicle, and control technologies.

    ``(c) Federal Share.--The Federal share payable on account of any 
project or activity carried out under subsection (a) shall not exceed 80 
percent.''.
    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by adding after the item relating to 
section 515 (as added by section 53003) the following:

``516. Research and development.''.

SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS.

    (a) In General.--Chapter 5 of title 23, United States Code, is 
amended by adding after section 516 (as added by section 53004) the 
following:
``Sec. 517. National architecture and standards

    ``(a) In General.--
            ``(1) Development, implementation, and maintenance.--In 
        accordance with section 12(d) of the National Technology 
        Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110 
        Stat. 783; 115 Stat. 1241), the Secretary shall develop and 
        maintain a national ITS architecture and supporting ITS 
        standards and protocols to promote the use of systems

[[Page 126 STAT. 903]]

        engineering methods in the widespread deployment and evaluation 
        of intelligent transportation systems as a component of the 
        surface transportation systems of the United States.
            ``(2) Interoperability and efficiency.--To the maximum 
        extent practicable, the national ITS architecture and supporting 
        ITS standards and protocols shall promote interoperability 
        among, and efficiency of, intelligent transportation systems and 
        technologies implemented throughout the United States.
            ``(3) Use of standards development organizations.--In 
        carrying out this section, the Secretary shall support the 
        development and maintenance of standards and protocols using the 
        services of such standards development organizations as the 
        Secretary determines to be necessary and whose memberships are 
        comprised of, and represent, the surface transportation and 
        intelligent transportation systems industries.

    ``(b) Standards for National Policy Implementation.--If the 
Secretary finds that a standard is necessary for implementation of a 
nationwide policy relating to user fee collection or other capability 
requiring nationwide uniformity, the Secretary, after consultation with 
stakeholders, may establish and require the use of that standard.
    ``(c) Provisional Standards.--
            ``(1) In general.--If the Secretary finds that the 
        development or balloting of an intelligent transportation system 
        standard jeopardizes the timely achievement of the objectives 
        described in subsection (a), the Secretary may establish a 
        provisional standard, after consultation with affected parties, 
        using, to the maximum extent practicable, the work product of 
        appropriate standards development organizations.
            ``(2) Period of effectiveness.--A provisional standard 
        established under paragraph (1) shall be published in the 
        Federal Register and remain in effect until the appropriate 
        standards development organization adopts and publishes a 
        standard.

    ``(d) Conformity With National Architecture.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall ensure that intelligent transportation system 
        projects carried out using amounts made available from the 
        Highway Trust Fund, including amounts made available to deploy 
        intelligent transportation systems, conform to the appropriate 
        regional ITS architecture, applicable standards, and protocols 
        developed under subsection (a) or (c).
            ``(2) Discretion of the secretary.--The Secretary, at the 
        discretion of the Secretary, may offer an exemption from 
        paragraph (1) for projects designed to achieve specific research 
        objectives outlined in the national intelligent transportation 
        system program plan or the surface transportation research and 
        development strategic plan developed under section 508.''.

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by adding after the item relating to 
section 516 (as added by section 53004) the following:

``517. National architecture and standards.''.

[[Page 126 STAT. 904]]

SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE 
                            COMMUNICATIONS SYSTEMS DEPLOYMENT.

    (a) In General.--Chapter 5 of title 23, United States Code, is 
amended by adding after section 517 (as added by section 53005) the 
following:
``Sec. 518. Vehicle-to-vehicle and vehicle-to-infrastructure 
                communications systems deployment

    ``(a) <<NOTE: Deadline.>> In General.--Not later than 3 years after 
the date of enactment of this section, the Secretary shall submit to the 
Committees on Commerce, Science, and Transportation and Environment and 
Public Works of the Senate and the Committees on Transportation and 
Infrastructure, Energy and Commerce, and Science, Space, and Technology 
of the House of Representatives that--
            ``(1) assesses the status of dedicated short-range 
        communications technology and applications developed through 
        research and development;
            ``(2) analyzes the known and potential gaps in short-range 
        communications technology and applications;
            ``(3) defines a recommended implementation path for 
        dedicated short-range communications technology and applications 
        that--
                    ``(A) is based on the assessment described in 
                paragraph (1); and
                    ``(B) takes into account the analysis described in 
                paragraph (2);
            ``(4) includes guidance on the relationship of the proposed 
        deployment of dedicated short-range communications to the 
        National ITS Architecture and ITS Standards; and
            ``(5) ensures competition by not preferencing the use of any 
        particular frequency for vehicle to infrastructure operations.

    ``(b) <<NOTE: Contracts.>>  Report Review.--The Secretary shall 
enter into agreements with the National Research Council and an 
independent third party with subject matter expertise for the review of 
the report described in subsection (a).''.

[[Page 126 STAT. 905]]

    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by adding after section 517 (as added by 
section 53005) the following:

``518. Vehicle-to-vehicle and vehicle-to-infrastructure communications 
           systems deployment.''.

                        DIVISION F--MISCELLANEOUS

              TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

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

SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION 
                              PROGRAM.

    (a) Amendments.--The Secure Rural Schools and Community Self-
Determination Act of 2000 (16 U.S.C. 7101 et seq.) is amended--
            (1) <<NOTE: 16 USC 7102.>>  in section 3(11)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon at the end;
                    (B) in subparagraph (B)--
                          (i) by striking ``fiscal year 2009 and each 
                      fiscal year thereafter'' and inserting ``each of 
                      fiscal years 2009 through 2011''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) for fiscal year 2012 and each fiscal year 
                thereafter, the amount that is equal to 95 percent of 
                the full funding amount for the preceding fiscal 
                year.'';
            (2) <<NOTE: 16 USC 71113et seq.>>  in sections 101, 102, 
        203, 207, 208, 304, and 402, by striking ``2011'' each place it 
        appears and inserting ``2012'';
            (3) <<NOTE: 16 USC 7112.>>  in section 102--
                    (A) by striking ``2008'' each place it appears and 
                inserting ``2012'';
                    (B) in subsection (b)(2)(B), by inserting ``in 
                2012'' before ``, the election''; and
                    (C) in subsection (d)--
                          (i) in paragraph (1)(A), by striking 
                      ``paragraph (3)(B)'' and inserting ``subparagraph 
                      (D)''; and
                          (ii) in paragraph (3)--
                                    (I) by striking subparagraph (A) and 
                                inserting the following:
                    ``(A) <<NOTE: Deadlines.>>  Notification.--The 
                Governor of each eligible State shall notify the 
                Secretary concerned of an election by an eligible county 
                under this subsection not later than September 30, 2012, 
                and each September 30 thereafter for each succeeding 
                fiscal year.'';
                                    (II) by redesignating subparagraph 
                                (B) as subparagraph (D) and moving the 
                                subparagraph so as to appear at the end 
                                of paragraph (1) of subsection (d); and

[[Page 126 STAT. 906]]

                                    (III) by inserting after 
                                subparagraph (A) the following:
                    ``(B) Failure to elect.--If the Governor of an 
                eligible State fails to notify the Secretary concerned 
                of the election for an eligible county by the date 
                specified in subparagraph (A)--
                          ``(i) the eligible county shall be considered 
                      to have elected to expend 80 percent of the funds 
                      in accordance with paragraph (1)(A); and
                          ``(ii) the remainder shall be available to the 
                      Secretary concerned to carry out projects in the 
                      eligible county to further the purpose described 
                      in section 202(b).'';
            (4) <<NOTE: 16 USC 7113.>>  in section 103(d)(2), by 
        striking ``fiscal year 2011'' and inserting ``each of fiscal 
        years 2011 and 2012'';
            (5) <<NOTE: 16 USC 7122.>>  in section 202, by adding at the 
        end the following:

    ``(c) Administrative Expenses.--A resource advisory committee may, 
in accordance with section 203, propose to use not more than 10 percent 
of the project funds of an eligible county for any fiscal year for 
administrative expenses associated with operating the resource advisory 
committee under this title.'';
            (6) <<NOTE: 16 USC 7124.>>  in section 204(e)(3)(B)(iii), by 
        striking ``and 2011'' and inserting ``through 2012'';
            (7) <<NOTE: 16 USC 7125.>>  in section 205(a)(4), by 
        striking ``2006'' each place it appears and inserting ``2011'';
            (8) <<NOTE: 16 USC 7128.>>  in section 208(b), by striking 
        ``2012'' and inserting ``2013'';
            (9) <<NOTE: 16 USC 7142.>>  in section 302(a)(2)(A), by 
        inserting ``and'' after the semicolon; and
            (10) <<NOTE: 16 USC 7144.>>  in section 304(b), by striking 
        ``2012'' and inserting ``2013''.

    (b) Failure To Make Election.--For each county that failed to make 
an election for fiscal year 2011 in accordance with section 102(d)(3)(A) 
of the Secure Rural Schools and Community Self-Determination Act of 2000 
(16 U.S.C. 7112(d)(3)(A)), there shall be available to the Secretary of 
Agriculture to carry out projects to further the purpose described in 
section 202(b) of that Act (16 U.S.C. 7122(b)), from amounts in the 
Treasury not otherwise appropriated, the amount that is equal to 15 
percent of the total share of the State payment that otherwise would 
have been made to the county under that Act for fiscal year 2011.

              Subtitle B--Payment in Lieu of Taxes Program

SEC. 100111. PAYMENTS IN LIEU OF TAXES.

    Section 6906 of title 31, United States Code, is amended by striking 
``2012'' and inserting ``2013''.

                           Subtitle C--Offsets

SEC. 100121. PHASED RETIREMENT AUTHORITY.

    (a) CSRS.--Chapter 83 of title 5, United States Code, is amended--
            (1) <<NOTE: 5 USC 8331.>>  in section 8331--

[[Page 126 STAT. 907]]

                    (A) in paragraph (30) by striking ``and'' at the 
                end;
                    (B) in paragraph (31) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(32) `Director' means the Director of the Office of 
        Personnel Management.'';
            (2) by inserting after section 8336 the following:
``Sec. 8336a. Phased retirement

    ``(a) <<NOTE: Definitions.>>  For the purposes of this section--
            ``(1) the term `composite retirement annuity' means the 
        annuity computed when a phased retiree attains full retirement 
        status;
            ``(2) the term `full retirement status' means that a phased 
        retiree has ceased employment and is entitled, upon application, 
        to a composite retirement annuity;
            ``(3) the term `phased employment' means the less-than-full-
        time employment of a phased retiree;
            ``(4) the term `phased retiree' means a retirement-eligible 
        employee who--
                    ``(A) makes an election under subsection (b); and
                    ``(B) has not entered full retirement status;
            ``(5) the term `phased retirement annuity' means the annuity 
        payable under this section before full retirement;
            ``(6) the term `phased retirement percentage' means the 
        percentage which, when added to the working percentage for a 
        phased retiree, produces a sum of 100 percent;
            ``(7) the term `phased retirement period' means the period 
        beginning on the date on which an individual becomes entitled to 
        receive a phased retirement annuity and ending on the date on 
        which the individual dies or separates from phased employment;
            ``(8) the term `phased retirement status' means that a 
        phased retiree is concurrently employed in phased employment and 
        eligible to receive a phased retirement annuity;
            ``(9) the term `retirement-eligible employee'--
                    ``(A) means an individual who, if the individual 
                separated from the service, would meet the requirements 
                for retirement under subsection (a) or (b) of section 
                8336; but
                    ``(B) does not include an employee described in 
                section 8335 after the date on which the employee is 
                required to be separated from the service by reason of 
                such section; and
            ``(10) the term `working percentage' means the percentage of 
        full-time employment equal to the quotient obtained by 
        dividing--
                    ``(A) the number of hours per pay period to be 
                worked by a phased retiree, as scheduled in accordance 
                with subsection (b)(2); by
                    ``(B) the number of hours per pay period to be 
                worked by an employee serving in a comparable position 
                on a full-time basis.

    ``(b)(1) <<NOTE: Regulations. Time period.>>  With the concurrence 
of the head of the employing agency, and under regulations promulgated 
by the Director, a retirement-eligible employee who has been employed on 
a full-time basis for not less than the 3-year period ending on the date 
on which

[[Page 126 STAT. 908]]

the retirement-eligible employee makes an election under this subsection 
may elect to enter phased retirement status.

    ``(2)(A) Subject to subparagraph (B), at the time of entering phased 
retirement status, a phased retiree shall be appointed to a position for 
which the working percentage is 50 percent.
    ``(B) The Director may, by regulation, provide for working 
percentages different from the percentage specified under subparagraph 
(A), which shall be not less than 20 percent and not more than 80 
percent.
    ``(C) The working percentage for a phased retiree may not be changed 
during the phased retiree's phased retirement period.
    ``(D)(i) Not less than 20 percent of the hours to be worked by a 
phased retiree shall consist of mentoring.
    ``(ii) The Director may, by regulation, provide for exceptions to 
the requirement under clause (i).
    ``(iii) Clause (i) shall not apply to a phased retiree serving in 
the United States Postal Service. Nothing in this clause shall prevent 
the application of clause (i) or (ii) with respect to a phased retiree 
serving in the Postal Regulatory Commission.
    ``(3) A phased retiree--
            ``(A) may not be employed in more than one position at any 
        time; and
            ``(B) may transfer to another position in the same or a 
        different agency, only if the transfer does not result in a 
        change in the working percentage.

    ``(4) A retirement-eligible employee may make not more than one 
election under this subsection during the retirement-eligible employee's 
lifetime.
    ``(5) A retirement-eligible employee who makes an election under 
this subsection may not make an election under section 8343a.
    ``(c)(1) Except as otherwise provided under this subsection, the 
phased retirement annuity for a phased retiree is the product obtained 
by multiplying--
            ``(A) the amount of an annuity computed under section 8339 
        that would have been payable to the phased retiree if, on the 
        date on which the phased retiree enters phased retirement 
        status, the phased retiree had separated from service and 
        retired under section 8336(a) or (b); by
            ``(B) the phased retirement percentage for the phased 
        retiree.

    ``(2) A phased retirement annuity shall be paid in addition to the 
basic pay for the position to which a phased retiree is appointed during 
phased employment.
    ``(3) A phased retirement annuity shall be adjusted in accordance 
with section 8340.
    ``(4)(A) A phased retirement annuity shall not be subject to 
reduction for any form of survivor annuity, shall not serve as the basis 
of the computation of any survivor annuity, and shall not be subject to 
any court order requiring a survivor annuity to be provided to any 
individual.
    ``(B) A phased retirement annuity shall be subject to a court order 
providing for division, allotment, assignment, execution, levy, 
attachment, garnishment, or other legal process on the same basis as 
other annuities.

[[Page 126 STAT. 909]]

    ``(5) <<NOTE: Applicability.>>  Any reduction of a phased retirement 
annuity based on an election under section 8334(d)(2) shall be applied 
to the phased retirement annuity after computation under paragraph (1).

    ``(6)(A) Any deposit, or election of an actuarial annuity reduction 
in lieu of a deposit, for military service or for creditable civilian 
service for which retirement deductions were not made or refunded shall 
be made by a retirement-eligible employee at or before the time the 
retirement-eligible employee enters phased retirement status. No such 
deposit may be made, or actuarial adjustment in lieu thereof elected, at 
the time a phased retiree enters full retirement status.
    ``(B) Notwithstanding subparagraph (A), if a phased retiree does not 
make such a deposit and dies in service as a phased retiree, a survivor 
of the phased retiree shall have the same right to make such deposit as 
would have been available had the employee not entered phased retirement 
status and died in service.
    ``(C) If a phased retiree makes an election for an actuarial annuity 
reduction under section 8334(d)(2) and dies in service as a phased 
retiree, the amount of any deposit upon which such actuarial reduction 
shall have been based shall be deemed to have been fully paid.
    ``(7) <<NOTE: Effective date.>>  A phased retirement annuity shall 
commence on the date on which a phased retiree enters phased employment.

    ``(8) No unused sick leave credit may be used in the computation of 
the phased retirement annuity.
    ``(d) All basic pay not in excess of the full-time rate of pay for 
the position to which a phased retiree is appointed shall be deemed to 
be basic pay for purposes of section 8334.
    ``(e) Under such procedures as the Director may prescribe, a phased 
retiree may elect to enter full retirement status at any time. Upon 
making such an election, a phased retiree shall be entitled to a 
composite retirement annuity.
    ``(f)(1) <<NOTE: Regulations.>>  Except as provided otherwise under 
this subsection, a composite retirement annuity is a single annuity 
computed under regulations prescribed by the Director, equal to the sum 
of--
            ``(A) the amount of the phased retirement annuity as of the 
        date of full retirement, before any reduction based on an 
        election under section 8334(d)(2), and including any adjustments 
        made under section 8340; and
            ``(B) the product obtained by multiplying--
                    ``(i) the amount of an annuity computed under 
                section 8339 that would have been payable at the time of 
                full retirement if the individual had not elected a 
                phased retirement and as if the individual was employed 
                on a full-time basis in the position occupied during the 
                phased retirement period and before any reduction for 
                survivor annuity or reduction based on an election under 
                section 8334(d)(2); by
                    ``(ii) the working percentage.

    ``(2) After computing a composite retirement annuity under paragraph 
(1), the Director shall adjust the amount of the annuity for any 
applicable reductions for a survivor annuity and any previously elected 
actuarial reduction under section 8334(d)(2).
    ``(3) A composite retirement annuity shall be adjusted in accordance 
with section 8340, except that subsection (c)(1) of that section shall 
not apply.

[[Page 126 STAT. 910]]

    ``(4) In computing a composite retirement annuity under paragraph 
(1)(B)(i), the unused sick leave to the credit of a phased retiree at 
the time of entry into full retirement status shall be adjusted by 
dividing the number of hours of unused sick leave by the working 
percentage.
    ``(g)(1) Under such procedures and conditions as the Director may 
provide, and with the concurrence of the head of the employing agency, a 
phased retiree may elect to terminate phased retirement status and 
return to a full-time work schedule.
    ``(2) Upon entering a full-time work schedule based upon an election 
under paragraph (1), the phased retirement annuity of a phased retiree 
shall terminate.
    ``(3) After the termination of a phased retirement annuity under 
this subsection, the individual's rights under this subchapter shall be 
determined based on the law in effect at the time of any subsequent 
separation from service. For purposes of this subchapter or chapter 84, 
at time of the subsequent separation from service, the phased retirement 
period shall be treated as if it had been a period of part-time 
employment with the work schedule described in subsection (b)(2).
    ``(h) For purposes of section 8341--
            ``(1) the death of a phased retiree shall be deemed to be 
        the death in service of an employee; and
            ``(2) the phased retirement period shall be deemed to have 
        been a period of part-time employment with the work schedule 
        described in subsection (b)(2).

    ``(i) Employment of a phased retiree shall not be deemed to be part-
time career employment, as defined in section 3401(2).
    ``(j) A phased retiree is not eligible to apply for an annuity under 
section 8337.
    ``(k) For purposes of section 8341(h)(4), retirement shall be deemed 
to occur on the date on which a phased retiree enters into full 
retirement status.
    ``(l) For purposes of sections 8343 and 8351, and subchapter III of 
chapter 84, a phased retiree shall be deemed to be an employee.
    ``(m) A phased retiree is not subject to section 8344.
    ``(n) For purposes of chapter 87, a phased retiree shall be deemed 
to be receiving basic pay at the rate of a full-time employee in the 
position to which the phased retiree is appointed.''; and
            (3) in the table of sections by inserting after the item 
        relating to section 8336 the following:

``8336a. Phased retirement.''.

    (b) FERS.--Chapter 84 of title 5, United States Code, is amended--
            (1) by inserting after section 8412 the following new 
        section:
``Sec. 8412a. Phased retirement

    ``(a) <<NOTE: Definitions.>>  For the purposes of this section--
            ``(1) the term `composite retirement annuity' means the 
        annuity computed when a phased retiree attains full retirement 
        status;
            ``(2) the term `full retirement status' means that a phased 
        retiree has ceased employment and is entitled, upon application, 
        to a composite retirement annuity;

[[Page 126 STAT. 911]]

            ``(3) the term `phased employment' means the less-than-full-
        time employment of a phased retiree;
            ``(4) the term `phased retiree' means a retirement-eligible 
        employee who--
                    ``(A) makes an election under subsection (b); and
                    ``(B) has not entered full retirement status;
            ``(5) the term `phased retirement annuity' means the annuity 
        payable under this section before full retirement;
            ``(6) the term `phased retirement percentage' means the 
        percentage which, when added to the working percentage for a 
        phased retiree, produces a sum of 100 percent;
            ``(7) the term `phased retirement period' means the period 
        beginning on the date on which an individual becomes entitled to 
        receive a phased retirement annuity and ending on the date on 
        which the individual dies or separates from phased employment;
            ``(8) the term `phased retirement status' means that a 
        phased retiree is concurrently employed in phased employment and 
        eligible to receive a phased retirement annuity;
            ``(9) the term `retirement-eligible employee'--
                    ``(A) means an individual who, if the individual 
                separated from the service, would meet the requirements 
                for retirement under subsection (a) or (b) of section 
                8412; and
                    ``(B) does not include--
                          ``(i) an individual who, if the individual 
                      separated from the service, would meet the 
                      requirements for retirement under subsection (d) 
                      or (e) of section 8412; but
                          ``(ii) does not include an employee described 
                      in section 8425 after the date on which the 
                      employee is required to be separated from the 
                      service by reason of such section; and
            ``(10) the term `working percentage' means the percentage of 
        full-time employment equal to the quotient obtained by 
        dividing--
                    ``(A) the number of hours per pay period to be 
                worked by a phased retiree, as scheduled in accordance 
                with subsection (b)(2); by
                    ``(B) the number of hours per pay period to be 
                worked by an employee serving in a comparable position 
                on a full-time basis.

    ``(b)(1) <<NOTE: Regulations. Time period.>>  With the concurrence 
of the head of the employing agency, and under regulations promulgated 
by the Director, a retirement-eligible employee who has been employed on 
a full-time basis for not less than the 3-year period ending on the date 
on which the retirement-eligible employee makes an election under this 
subsection may elect to enter phased retirement status.

    ``(2)(A) Subject to subparagraph (B), at the time of entering phased 
retirement status, a phased retiree shall be appointed to a position for 
which the working percentage is 50 percent.
    ``(B) The Director may, by regulation, provide for working 
percentages different from the percentage specified under subparagraph 
(A), which shall be not less than 20 percent and not more than 80 
percent.
    ``(C) The working percentage for a phased retiree may not be changed 
during the phased retiree's phased retirement period.

[[Page 126 STAT. 912]]

    ``(D)(i) Not less than 20 percent of the hours to be worked by a 
phased retiree shall consist of mentoring.
    ``(ii) The Director may, by regulation, provide for exceptions to 
the requirement under clause (i).
    ``(iii) Clause (i) shall not apply to a phased retiree serving in 
the United States Postal Service. Nothing in this clause shall prevent 
the application of clause (i) or (ii) with respect to a phased retiree 
serving in the Postal Regulatory Commission.
    ``(3) A phased retiree--
            ``(A) may not be employed in more than one position at any 
        time; and
            ``(B) may transfer to another position in the same or a 
        different agency, only if the transfer does not result in a 
        change in the working percentage.

    ``(4) A retirement-eligible employee may make not more than one 
election under this subsection during the retirement-eligible employee's 
lifetime.
    ``(5) A retirement-eligible employee who makes an election under 
this subsection may not make an election under section 8420a.
    ``(c)(1) Except as otherwise provided under this subsection, the 
phased retirement annuity for a phased retiree is the product obtained 
by multiplying--
            ``(A) the amount of an annuity computed under section 8415 
        that would have been payable to the phased retiree if, on the 
        date on which the phased retiree enters phased retirement 
        status, the phased retiree had separated from service and 
        retired under section 8412 (a) or (b); by
            ``(B) the phased retirement percentage for the phased 
        retiree.

    ``(2) A phased retirement annuity shall be paid in addition to the 
basic pay for the position to which a phased retiree is appointed during 
the phased employment.
    ``(3) A phased retirement annuity shall be adjusted in accordance 
with section 8462.
    ``(4)(A) A phased retirement annuity shall not be subject to 
reduction for any form of survivor annuity, shall not serve as the basis 
of the computation of any survivor annuity, and shall not be subject to 
any court order requiring a survivor annuity to be provided to any 
individual.
    ``(B) A phased retirement annuity shall be subject to a court order 
providing for division, allotment, assignment, execution, levy, 
attachment, garnishment, or other legal process on the same basis as 
other annuities.
    ``(5)(A) Any deposit, or election of an actuarial annuity reduction 
in lieu of a deposit, for military service or for creditable civilian 
service for which retirement deductions were not made or refunded, shall 
be made by a retirement-eligible employee at or before the time the 
retirement-eligible employee enters phased retirement status. No such 
deposit may be made, or actuarial adjustment in lieu thereof elected, at 
the time a phased retiree enters full retirement status.
    ``(B) Notwithstanding subparagraph (A), if a phased retiree does not 
make such a deposit and dies in service as a phased retiree, a survivor 
of the phased retiree shall have the same right to make such deposit as 
would have been available had the employee not entered phased retirement 
status and died in service.

[[Page 126 STAT. 913]]

    ``(6) <<NOTE: Effective date.>>  A phased retirement annuity shall 
commence on the date on which a phased retiree enters phased employment.

    ``(7) No unused sick leave credit may be used in the computation of 
the phased retirement annuity.
    ``(d) All basic pay not in excess of the full-time rate of pay for 
the position to which a phased retiree is appointed shall be deemed to 
be basic pay for purposes of sections 8422 and 8423.
    ``(e) Under such procedures as the Director may prescribe, a phased 
retiree may elect to enter full retirement status at any time. Upon 
making such an election, a phased retiree shall be entitled to a 
composite retirement annuity.
    ``(f)(1) <<NOTE: Regulations.>>  Except as provided otherwise under 
this subsection, a composite retirement annuity is a single annuity 
computed under regulations prescribed by the Director, equal to the sum 
of--
            ``(A) the amount of the phased retirement annuity as of the 
        date of full retirement, including any adjustments made under 
        section 8462; and
            ``(B) the product obtained by multiplying--
                    ``(i) the amount of an annuity computed under 
                section 8412 that would have been payable at the time of 
                full retirement if the individual had not elected a 
                phased retirement and as if the individual was employed 
                on a full-time basis in the position occupied during the 
                phased retirement period and before any adjustment to 
                provide for a survivor annuity; by
                    ``(ii) the working percentage.

    ``(2) After computing a composite retirement annuity under paragraph 
(1), the Director shall adjust the amount of the annuity for any 
applicable reductions for a survivor annuity.
    ``(3) A composite retirement annuity shall be adjusted in accordance 
with section 8462, except that subsection (c)(1) of that section shall 
not apply.
    ``(4) In computing a composite retirement annuity under paragraph 
(1)(B)(i), the unused sick leave to the credit of a phased retiree at 
the time of entry into full retirement status shall be adjusted by 
dividing the number of hours of unused sick leave by the working 
percentage.
    ``(g)(1) Under such procedures and conditions as the Director may 
provide, and with the concurrence of the head of employing agency, a 
phased retiree may elect to terminate phased retirement status and 
return to a full-time work schedule.
    ``(2) Upon entering a full-time work schedule based on an election 
under paragraph (1), the phased retirement annuity of a phased retiree 
shall terminate.
    ``(3) After termination of the phased retirement annuity under this 
subsection, the individual's rights under this chapter shall be 
determined based on the law in effect at the time of any subsequent 
separation from service. For purposes of this chapter, at the time of 
the subsequent separation from service, the phased retirement period 
shall be treated as if it had been a period of part-time employment with 
the work schedule described in subsection (b)(2).
    ``(h) For purposes of subchapter IV--
            ``(1) the death of a phased retiree shall be deemed to be 
        the death in service of an employee;
            ``(2) except for purposes of section 8442(b)(1)(A)(i), the 
        phased retirement period shall be deemed to have been a period

[[Page 126 STAT. 914]]

        of part-time employment with the work schedule described in 
        subsection (b)(2) of this section; and
            ``(3) for purposes of section 8442(b)(1)(A)(i), the phased 
        retiree shall be deemed to have been at the full-time rate of 
        pay for the position occupied.

    ``(i) Employment of a phased retiree shall not be deemed to be part-
time career employment, as defined in section 3401(2).
    ``(j) A phased retiree is not eligible to receive an annuity 
supplement under section 8421.
    ``(k) For purposes of subchapter III, a phased retiree shall be 
deemed to be an employee.
    ``(l) For purposes of section 8445(d), retirement shall be deemed to 
occur on the date on which a phased retiree enters into full retirement 
status.
    ``(m) A phased retiree is not eligible to apply for an annuity under 
subchapter V.
    ``(n) A phased retiree is not subject to section 8468.
    ``(o) For purposes of chapter 87, a phased retiree shall be deemed 
to be receiving basic pay at the rate of a full-time employee in the 
position to which the phased retiree is appointed.''; and
            (2) in the table of sections by inserting after the item 
        relating to section 8412 the following:

``8412a. Phased retirement.''.

    (c) Exemption From 10-percent Additional Tax on Early 
Distributions.--Section 72(t)(2)(A) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 72.>> is amended by striking ``or'' at the end of 
clause (vi), by striking the period at the end of clause (vii) and 
inserting ``, or'', and by adding at the end the following:
                          ``(viii) payments under a phased retirement 
                      annuity under section 8366a(a)(5) or 8412a(a)(5) 
                      of title 5, United States Code, or a composite 
                      retirement annuity under section 8366a(a)(1) or 
                      8412a(a)(1) of such title.''.

    (d) <<NOTE: 5 USC 8331 note.>>  Effective Date.--The amendments made 
by subsections (a) and (b) shall take effect on the effective date of 
the implementing regulations issued by the Director of the Office of 
Personnel Management.
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.

    (a) In General.--Subsection (d) of section 5702 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
flush sentence:
``Such <<NOTE: Definition.>> term shall include any person who for 
commercial purposes makes available for consumer use (including such 
consumer's personal consumption or use under paragraph (1)) a machine 
capable of making cigarettes, cigars, or other tobacco products. A 
person making such a machine available for consumer use shall be deemed 
the person making the removal as defined by subsection (j) with respect 
to any tobacco products manufactured by such machine. A person who sells 
a machine directly to a consumer at retail for a consumer's personal 
home use is not making a machine available for commercial purposes if 
such machine is not used at a retail premises and is designed to produce 
tobacco products only in personal use quantities.''.

[[Page 126 STAT. 915]]

    (b) <<NOTE: 26 USC 5702 note.>>  Effective Date.--The amendment made 
by this section shall apply to articles removed after the date of the 
enactment of this Act.
SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY STATES.

    (a) Accelerated Date for Prior Amendments.--Section 3204(b) of the 
Middle Class Tax Relief and Job Creation Act of 2012 (Public Law 112-
96) <<NOTE: 42 USC 1396d note.>> is amended by striking ``October 1, 
2013'' and inserting ``October 1, 2012''.

    (b) Application of 50 Percent in Fiscal Year 2013.--Subparagraph (B) 
of section 1905(aa)(1) of the Social Security Act (42 U.S.C. 
1396d(aa)(1)), as amended by section 3204(a) of Public Law 112-96, is 
amended by striking ``25 percent'' and inserting ``25 percent (or 50 
percent in the case of fiscal year 2013)''.
    (c) <<NOTE: 42 USC 1396d note.>>  Effective Date.--The amendments 
made by this section shall be effective as if included in the enactment 
of section 3204 of Public Law 112-96.
SEC. 100124. REPEALS.

    (a) Transportation Requirements for Certain Exports Sponsored by the 
Secretary of Agriculture.--
            (1) Repeal.--Subsections (a) and (c) of section 55314 of 
        title 46, United States Code, are repealed.
            (2) Activities described.--Subsection (b) of section 55314 
        of title 46, United States Code, is amended by striking ``This 
        section applies to export activity'' and inserting ``The 
        activities specified in this subsection are export activities''.

    (b) Financing the Transportation of Agricultural Commodities.--
Subsection (a) of section 55316 of title 46, United States Code, is 
repealed.
    (c) Conforming Amendments.--
            (1) Minimum tonnage.--Section 55315(b) of title 46, United 
        States Code, is amended by striking ``subject to section 55314'' 
        and inserting ``specified in section 55314(b)''.
            (2) Issuance and purchase of obligations and notification to 
        congress of insufficiency.--Section 55316 of title 46, United 
        States Code, is amended--
                    (A) in subsection (c)(1) by striking ``under 
                subsections (a) and (b)'' and inserting ``under 
                subsection (b)''; and
                    (B) in subsection (f) by striking ``subsections (a) 
                and (b) and section 55314(a) of this title'' and 
                inserting ``subsection (b)''.
            (3) Termination of subchapter.--Section 55317 of title 46, 
        United States Code, is amended by striking ``sections 55314(a) 
        and 55316(a) and (b)'' and inserting ``section 55316(b)''.
SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE 
                              RECLAMATION FUND.

    Section 411(h) of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1240a(h)) is amended by adding at the end the following:
            ``(5) Limitation on annual payments.--Notwithstanding any 
        other provision of this subsection, the total annual payment to 
        a certified State or Indian tribe under this subsection shall be 
        not more than $15,000,000.''.

[[Page 126 STAT. 916]]

 TITLE <<NOTE: Biggert-Waters Flood Insurance Reform Act of 2012.>> II--
FLOOD INSURANCE

          Subtitle A--Flood Insurance Reform and Modernization

SEC. 100201. <<NOTE: 42 USC 4001 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Biggert-Waters Flood Insurance 
Reform Act of 2012''.
SEC. 100202. <<NOTE: 42 USC 4004.>> DEFINITIONS.

    (a) In General.--In this subtitle, the following definitions shall 
apply:
            (1) 100-year floodplain.--The term ``100-year floodplain'' 
        means that area which is subject to inundation from a flood 
        having a 1-percent chance of being equaled or exceeded in any 
        given year.
            (2) 500-year floodplain.--The term ``500-year floodplain'' 
        means that area which is subject to inundation from a flood 
        having a 0.2-percent chance of being equaled or exceeded in any 
        given year.
            (3) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (4) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
        seq.).
            (5) Write your own.--The term ``Write Your Own'' means the 
        cooperative undertaking between the insurance industry and the 
        Federal Insurance Administration which allows participating 
        property and casualty insurance companies to write and service 
        standard flood insurance policies.

    (b) Common Terminology.--Except as otherwise provided in this 
subtitle, any terms used in this subtitle shall have the meaning given 
to such terms under section 1370 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4121).
SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``July 31, 2012'' and 
inserting ``September 30, 2017''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking ``July 31, 
2012'' and inserting ``September 30, 2017''.
SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

    Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended--
            (1) in subsection (b)(2)(A), by inserting ``not described in 
        subsection (a) or (d)'' after ``properties''; and
            (2) by adding at the end the following:

    ``(d) Availability of Insurance for Multifamily Properties.--
            ``(1) In general.--The Administrator shall make flood 
        insurance available to cover residential properties of 5 or more 
        residences. Notwithstanding any other provision of law, the

[[Page 126 STAT. 917]]

        maximum coverage amount that the Administrator may make 
        available under this subsection to such residential properties 
        shall be equal to the coverage amount made available to 
        commercial properties.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the ability of individuals residing 
        in residential properties of 5 or more residences to obtain 
        insurance for the contents and personal articles located in such 
        residences.''.
SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE.

    (a) To Exclude Certain Properties From Receiving Subsidized Premium 
Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (a)(2), by striking ``for any 
                residential property which is not the primary residence 
                of an individual; and'' and inserting the following: 
                ``for--
                    ``(A) any residential property which is not the 
                primary residence of an individual;
                    ``(B) any severe repetitive loss property;
                    ``(C) any property that has incurred flood-related 
                damage in which the cumulative amounts of payments under 
                this title equaled or exceeded the fair market value of 
                such property;
                    ``(D) any business property; or
                    ``(E) any property which on or after the date of 
                enactment of the Biggert-Waters Flood Insurance Reform 
                Act of 2012 has experienced or sustained--
                          ``(i) substantial damage exceeding 50 percent 
                      of the fair market value of such property; or
                          ``(ii) substantial improvement exceeding 30 
                      percent of the fair market value of such property; 
                      and''; and
                    (B) by adding at the end the following:

    ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
The Administrator shall not provide flood insurance to prospective 
insureds at rates less than those estimated under subsection (a)(1), as 
required by paragraph (2) of that subsection, for--
            ``(1) any property not insured by the flood insurance 
        program as of the date of enactment of the Biggert-Waters Flood 
        Insurance Reform Act of 2012;
            ``(2) any property purchased after the date of enactment of 
        the Biggert-Waters Flood Insurance Reform Act of 2012;
            ``(3) any policy under the flood insurance program that has 
        lapsed in coverage, as a result of the deliberate choice of the 
        holder of such policy; or
            ``(4) any prospective insured who refuses to accept any 
        offer for mitigation assistance by the Administrator (including 
        an offer to relocate), including an offer of mitigation 
        assistance--
                    ``(A) following a major disaster, as defined in 
                section 102 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5122); or
                    ``(B) in connection with--
                          ``(i) a repetitive loss property; or
                          ``(ii) a severe repetitive loss property.

[[Page 126 STAT. 918]]

    ``(h) Definition.--In this section, the term `severe repetitive loss 
property' has the following meaning:
            ``(1) Single-family properties.--In the case of a property 
        consisting of 1 to 4 residences, such term means a property 
        that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                          ``(i) for which 4 or more separate claims 
                      payments have been made under flood insurance 
                      coverage under this chapter, with the amount of 
                      each such claim exceeding $5,000, and with the 
                      cumulative amount of such claims payments 
                      exceeding $20,000; or
                          ``(ii) for which at least 2 separate claims 
                      payments have been made under such coverage, with 
                      the cumulative amount of such claims exceeding the 
                      value of the property.
            ``(2) <<NOTE: Regulations.>>  Multifamily properties.--In 
        the case of a property consisting of 5 or more residences, such 
        term shall have such meaning as the Director shall by regulation 
        provide.''.
            (2) <<NOTE: 42 USC 4014 note.>>  Effective date.--The 
        amendments made by paragraph (1) shall become effective 90 days 
        after the date of enactment of this Act.

    (b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is 
amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii), by adding ``and'' at the end; and
            (3) by inserting after clause (iii) the following:
                          ``(iv) all costs, as prescribed by principles 
                      and standards of practice in ratemaking adopted by 
                      the American Academy of Actuaries and the Casualty 
                      Actuarial Society, including--
                                    ``(I) an estimate of the expected 
                                value of future costs,
                                    ``(II) all costs associated with the 
                                transfer of risk, and
                                    ``(III) the costs associated with an 
                                individual risk transfer with respect to 
                                risk classes, as defined by the 
                                Administrator,''.

    (c) Increase in Annual Limitation on Premium Increases.--Section 
1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) 
is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``or (3)''; and
                    (B) by inserting ``any properties'' after ``under 
                this title for'';
            (2) in paragraph (1)--
                    (A) by striking ``any properties within any single'' 
                and inserting ``within any single''; and
                    (B) by striking ``10 percent'' and inserting ``20 
                percent''; and
            (3) by striking paragraph (2) and inserting the following:
            ``(2) described in subparagraphs (A) through (E) of section 
        1307(a)(2) shall be increased by 25 percent each year, until the 
        average risk premium rate for such properties is equal

[[Page 126 STAT. 919]]

        to the average of the risk premium rates for properties 
        described under paragraph (1).''.

    (d) Premium Payment Flexibility for New and Existing 
Policyholders.--Section 1308 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015) is amended by adding at the end the following:
    ``(g) Frequency of Premium Collection.--With respect to any 
chargeable premium rate prescribed under this section, the Administrator 
shall provide policyholders that are not required to escrow their 
premiums and fees for flood insurance as set forth under section 102 of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) with the 
option of paying their premiums either annually or in more frequent 
installments.''.
    (e) <<NOTE: Effective date. 42 USC 4015 note.>>  Rule of 
Construction.--Nothing in this section or the amendments made by this 
section may be construed to affect the requirement under section 2(c) of 
the Act entitled ``An Act to extend the National Flood Insurance 
Program, and for other purposes'', approved May 31, 2012 (Public Law 
112-123), that the first increase in chargeable risk premium rates for 
residential properties which are not the primary residence of an 
individual take effect on July 1, 2012.
SEC. 100207. PREMIUM ADJUSTMENT.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by section 100205, is further amended by adding at the 
end the following:
    ``(h) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding <<NOTE: Time period.>> subsection (f), upon the 
effective date of any revised or updated flood insurance rate map under 
this Act, the Flood Disaster Protection Act of 1973, or the Biggert-
Waters Flood Insurance Reform Act of 2012, any property located in an 
area that is participating in the national flood insurance program shall 
have the risk premium rate charged for flood insurance on such property 
adjusted to accurately reflect the current risk of flood to such 
property, subject to any other provision of this Act. Any increase in 
the risk premium rate charged for flood insurance on any property that 
is covered by a flood insurance policy on the effective date of such an 
update that is a result of such updating shall be phased in over a 5-
year period, at the rate of 20 percent for each year following such 
effective date. In the case of any area that was not previously 
designated as an area having special flood hazards and that, pursuant to 
any issuance, revision, updating, or other change in a flood insurance 
map, becomes designated as such an area, the chargeable risk premium 
rate for flood insurance under this title that is purchased on or after 
the date of enactment of this subsection with respect to any property 
that is located within such area shall be phased in over a 5-year 
period, at the rate of 20 percent for each year following the effective 
date of such issuance, revision, updating, or change.''.
SEC. 100208. ENFORCEMENT.

    Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)(5)) is amended--
            (1) in the first sentence, by striking ``$350'' and 
        inserting ``$2,000''; and
            (2) by striking the second sentence.

[[Page 126 STAT. 920]]

SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS.

    (a) In General.--Paragraph (1) of section 102(d) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended to read 
as follows:
            ``(1) Regulated lending institutions.--
                    ``(A) Federal entities responsible for lending 
                regulations.--Each Federal entity for lending regulation 
                (after consultation and coordination with the Federal 
                Financial Institutions Examination Council) shall, by 
                regulation, direct that all premiums and fees for flood 
                insurance under the National Flood Insurance Act of 
                1968, for improved real estate or a mobile home, shall 
                be paid to the regulated lending institution or servicer 
                for any loan secured by the improved real estate or 
                mobile home, with the same frequency as payments on the 
                loan are made, for the duration of the loan. Except as 
                provided in subparagraph (C), upon receipt of any 
                premiums or fees, the regulated lending institution or 
                servicer shall deposit such premiums and fees in an 
                escrow account on behalf of the borrower. Upon receipt 
                of a notice from the Administrator or the provider of 
                the flood insurance that insurance premiums are due, the 
                premiums deposited in the escrow account shall be paid 
                to the provider of the flood insurance.
                    ``(B) Limitation.--Except as may be required under 
                applicable State law, a Federal entity for lending 
                regulation may not direct or require a regulated lending 
                institution to deposit premiums or fees for flood 
                insurance under the National Flood Insurance Act of 1968 
                in an escrow account on behalf of a borrower under 
                subparagraph (A) or (B), if--
                          ``(i) the regulated lending institution has 
                      total assets of less than $1,000,000,000; and
                          ``(ii) on or before the date of enactment of 
                      the Biggert-Waters Flood Insurance Reform Act of 
                      2012, the regulated lending institution--
                                    ``(I) in the case of a loan secured 
                                by residential improved real estate or a 
                                mobile home, was not required under 
                                Federal or State law to deposit taxes, 
                                insurance premiums, fees, or any other 
                                charges in an escrow account for the 
                                entire term of the loan; and
                                    ``(II) did not have a policy of 
                                consistently and uniformly requiring the 
                                deposit of taxes, insurance premiums, 
                                fees, or any other charges in an escrow 
                                account for loans secured by residential 
                                improved real estate or a mobile 
                                home.''.

    (b) <<NOTE: Time period. 42 USC 4012a note.>>  Applicability.--The 
amendment made by subsection (a) shall apply to any mortgage outstanding 
or entered into on or after the expiration of the 2-year period 
beginning on the date of enactment of this Act.
SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL 
                              FLOOD INSURANCE PROGRAM.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following:

    ``(a) In General.--The Administrator is''; and

[[Page 126 STAT. 921]]

            (2) by adding at the end the following:

    ``(b) Minimum Annual Deductible.--
            ``(1) Pre-firm properties.--For any structure which is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred on or before 
        December 31, 1974, or before the effective date of an initial 
        flood insurance rate map published by the Administrator under 
        section 1360 for the area in which such structure is located, 
        the minimum annual deductible for damage to such structure shall 
        be--
                    ``(A) $1,500, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $2,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.
            ``(2) Post-firm properties.--For any structure which is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred after December 
        31, 1974, or after the effective date of an initial flood 
        insurance rate map published by the Administrator under section 
        1360 for the area in which such structure is located, the 
        minimum annual deductible for damage to such structure shall 
        be--
                    ``(A) $1,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $1,250, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.''.
SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM 
                              RATES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by this Act, is amended--
            (1) in subsection (a), by striking ``, after consultation 
        with'' and all that follows through ``by regulation'' and 
        inserting ``prescribe, after providing notice'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking the period at the 
                end and inserting a semicolon;
                    (B) in paragraph (2), by striking the comma at the 
                end and inserting a semicolon;
                    (C) in paragraph (3), by striking ``, and'' and 
                inserting a semicolon;
                    (D) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(5) adequate, on the basis of accepted actuarial 
        principles, to cover the average historical loss year 
        obligations incurred by the National Flood Insurance Fund.''; 
        and
            (3) by adding at the end the following:

    ``(i) Rule of Construction.--For purposes of this section, the 
calculation of an `average historical loss year'--
            ``(1) includes catastrophic loss years; and
            ``(2) shall be computed in accordance with generally 
        accepted actuarial principles.''.

[[Page 126 STAT. 922]]

SEC. 100212. RESERVE FUND.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by inserting after section 1310 (42 U.S.C. 
4017) the following:
``SEC. <<NOTE: 42 USC 4017a.>> 1310A. RESERVE FUND.

    ``(a) Establishment of Reserve Fund.--In carrying out the flood 
insurance program authorized by this chapter, the Administrator shall 
establish in the Treasury of the United States a National Flood 
Insurance Reserve Fund (in this section referred to as the `Reserve 
Fund') which shall--
            ``(1) be an account separate from any other accounts or 
        funds available to the Administrator; and
            ``(2) be available for meeting the expected future 
        obligations of the flood insurance program, including--
                    ``(A) the payment of claims;
                    ``(B) claims adjustment expenses; and
                    ``(C) the repayment of amounts outstanding under any 
                note or other obligation issued by the Administrator 
                under section 1309(a).

    ``(b) Reserve Ratio.--Subject to the phase-in requirements under 
subsection (d), the Reserve Fund shall maintain a balance equal to--
            ``(1) 1 percent of the sum of the total potential loss 
        exposure of all outstanding flood insurance policies in force in 
        the prior fiscal year; or
            ``(2) such higher percentage as the Administrator determines 
        to be appropriate, taking into consideration any circumstance 
        that may raise a significant risk of substantial future losses 
        to the Reserve Fund.

    ``(c) Maintenance of Reserve Ratio.--
            ``(1) In general.--The Administrator shall have the 
        authority to establish, increase, or decrease the amount of 
        aggregate annual insurance premiums to be collected for any 
        fiscal year necessary--
                    ``(A) to maintain the reserve ratio required under 
                subsection (b); and
                    ``(B) to achieve such reserve ratio, if the actual 
                balance of such reserve is below the amount required 
                under subsection (b).
            ``(2) Considerations.--In exercising the authority granted 
        under paragraph (1), the Administrator shall consider--
                    ``(A) the expected operating expenses of the Reserve 
                Fund;
                    ``(B) the insurance loss expenditures under the 
                flood insurance program;
                    ``(C) any investment income generated under the 
                flood insurance program; and
                    ``(D) any other factor that the Administrator 
                determines appropriate.
            ``(3) Limitations.--
                    ``(A) Rates.--In exercising the authority granted 
                under paragraph (1), the Administrator shall be subject 
                to all other provisions of this Act, including any 
                provisions relating to chargeable premium rates or 
                annual increases of such rates.

[[Page 126 STAT. 923]]

                    ``(B) Use of additional annual insurance premiums.--
                Notwithstanding any other provision of law or any 
                agreement entered into by the Administrator, the 
                Administrator shall ensure that all amounts attributable 
                to the establishment or increase of annual insurance 
                premiums under paragraph (1) are transferred to the 
                Administrator for deposit into the Reserve Fund, to be 
                available for meeting the expected future obligations of 
                the flood insurance program as described in subsection 
                (a)(2).

    ``(d) Phase-in Requirements.--The phase-in requirements under this 
subsection are as follows:
            ``(1) <<NOTE: Effective date.>>  In general.--Beginning in 
        fiscal year 2013 and not ending until the fiscal year in which 
        the ratio required under subsection (b) is achieved, in each 
        such fiscal year the Administrator shall place in the Reserve 
        Fund an amount equal to not less than 7.5 percent of the reserve 
        ratio required under subsection (b).
            ``(2) Amount satisfied.--As soon as the ratio required under 
        subsection (b) is achieved, and except as provided in paragraph 
        (3), the Administrator shall not be required to set aside any 
        amounts for the Reserve Fund.
            ``(3) Exception.--If at any time after the ratio required 
        under subsection (b) is achieved, the Reserve Fund falls below 
        the required ratio under subsection (b), the Administrator shall 
        place in the Reserve Fund for that fiscal year an amount equal 
        to not less than 7.5 percent of the reserve ratio required under 
        subsection (b).

    ``(e) <<NOTE: Determination. Reports.>>  Limitation on Reserve 
Ratio.--In any given fiscal year, if the Administrator determines that 
the reserve ratio required under subsection (b) cannot be achieved, the 
Administrator shall submit a report to Congress that--
            ``(1) describes and details the specific concerns of the 
        Administrator regarding the consequences of the reserve ratio 
        not being achieved;
            ``(2) demonstrates how such consequences would harm the 
        long-term financial soundness of the flood insurance program; 
        and
            ``(3) indicates the maximum attainable reserve ratio for 
        that particular fiscal year.

    ``(f) Investment.--The Secretary of the Treasury shall invest such 
amounts of the Reserve Fund as the Secretary determines advisable in 
obligations issued or guaranteed by the United States.''.
SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY.

    (a) Repayment Plan Required.--Section 1309 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding at the end 
the following:
    ``(c) Upon the exercise of the authority established under 
subsection (a), the Administrator shall transmit a schedule for 
repayment of such amounts to--
            ``(1) the Secretary of the Treasury;
            ``(2) the Committee on Banking, Housing, and Urban Affairs 
        of the Senate; and
            ``(3) the Committee on Financial Services of the House of 
        Representatives.

    ``(d) <<NOTE: Deadline. Reports.>>  In connection with any funds 
borrowed by the Administrator under the authority established in 
subsection (a), the

[[Page 126 STAT. 924]]

Administrator, beginning 6 months after the date on which such funds are 
borrowed, and continuing every 6 months thereafter until such borrowed 
funds are fully repaid, shall submit a report on the progress of such 
repayment to--
            ``(1) the Secretary of the Treasury;
            ``(2) the Committee on Banking, Housing, and Urban Affairs 
        of the Senate; and
            ``(3) the Committee on Financial Services of the House of 
        Representatives.''.

    (b) Report.--Not later than the expiration of the 6-month period 
beginning on the date of enactment of this Act, the Administrator shall 
submit a report to the Congress setting forth options for repaying 
within 10 years all amounts, including any amounts previously borrowed 
but not yet repaid, owed pursuant to clause (2) of subsection (a) of 
section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)(2)).
SEC. 100214. PAYMENT OF CONDOMINIUM CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 100210, is amended by adding at the end the 
following:
    ``(c) Payment of Claims to Condominium Owners.--The Administrator 
may not deny payment for any damage to or loss of property which is 
covered by flood insurance to condominium owners who purchased such 
flood insurance separate and apart from the flood insurance purchased by 
the condominium association in which such owner is a member, based 
solely, or in any part, on the flood insurance coverage of the 
condominium association or others on the overall property owned by the 
condominium association.''.
SEC. 100215. <<NOTE: 42 USC 4101a.>> TECHNICAL MAPPING ADVISORY 
                              COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of--
                    (A) the Administrator (or the designee thereof);
                    (B) the Secretary of the Interior (or the designee 
                thereof);
                    (C) the Secretary of Agriculture (or the designee 
                thereof);
                    (D) the Under Secretary of Commerce for Oceans and 
                Atmosphere (or the designee thereof); and
                    (E) 16 additional members appointed by the 
                Administrator or the designee of the Administrator, who 
                shall be--
                          (i) a member of a recognized professional 
                      surveying association or organization;
                          (ii) a member of a recognized professional 
                      mapping association or organization;
                          (iii) a member of a recognized professional 
                      engineering association or organization;
                          (iv) a member of a recognized professional 
                      association or organization representing flood 
                      hazard determination firms;
                          (v) a representative of the United States 
                      Geological Survey;

[[Page 126 STAT. 925]]

                          (vi) a representative of a recognized 
                      professional association or organization 
                      representing State geographic information;
                          (vii) a representative of State national flood 
                      insurance coordination offices;
                          (viii) a representative of the Corps of 
                      Engineers;
                          (ix) a member of a recognized regional flood 
                      and storm water management organization;
                          (x) 2 representatives of different State 
                      government agencies that have entered into 
                      cooperating technical partnerships with the 
                      Administrator and have demonstrated the capability 
                      to produce flood insurance rate maps;
                          (xi) 2 representatives of different local 
                      government agencies that have entered into 
                      cooperating technical partnerships with the 
                      Administrator and have demonstrated the capability 
                      to produce flood insurance maps;
                          (xii) a member of a recognized floodplain 
                      management association or organization;
                          (xiii) a member of a recognized risk 
                      management association or organization; and
                          (xiv) a State mitigation officer.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps. In appointing members under 
        paragraph (1)(E), the Administrator shall, to the maximum extent 
        practicable, ensure that the membership of the Council has a 
        balance of Federal, State, local, tribal, and private members, 
        and includes geographic diversity, including representation from 
        areas with coastline on the Gulf of Mexico and other States 
        containing areas identified by the Administrator as at high risk 
        for flooding or as areas having special flood hazards.

    (c) <<NOTE: Recommenda- tions.>>  Duties.--The Council shall--
            (1) recommend to the Administrator how to improve in a cost-
        effective manner the--
                    (A) accuracy, general quality, ease of use, and 
                distribution and dissemination of flood insurance rate 
                maps and risk data; and
                    (B) performance metrics and milestones required to 
                effectively and efficiently map flood risk areas in the 
                United States;
            (2) recommend to the Administrator mapping standards and 
        guidelines for--
                    (A) flood insurance rate maps; and
                    (B) data accuracy, data quality, data currency, and 
                data eligibility;
            (3) recommend to the Administrator how to maintain, on an 
        ongoing basis, flood insurance rate maps and flood risk 
        identification;
            (4) recommend procedures for delegating mapping activities 
        to State and local mapping partners;
            (5) recommend to the Administrator and other Federal 
        agencies participating in the Council--

[[Page 126 STAT. 926]]

                    (A) methods for improving interagency and 
                intergovernmental coordination on flood mapping and 
                flood risk determination; and
                    (B) a funding strategy to leverage and coordinate 
                budgets and expenditures across Federal agencies; and
            (6) <<NOTE: Deadline. Reports.>> submit an annual report to 
        the Administrator that contains--
                    (A) a description of the activities of the Council;
                    (B) an evaluation of the status and performance of 
                flood insurance rate maps and mapping activities to 
                revise and update flood insurance rate maps, as required 
                under section 100216; and
                    (C) a summary of recommendations made by the Council 
                to the Administrator.

    (d) Future Conditions Risk Assessment and Modeling Report.--
            (1) <<NOTE: Consultation.>>  In general.--The Council shall 
        consult with scientists and technical experts, other Federal 
        agencies, States, and local communities to--
                    (A) develop recommendations on how to--
                          (i) ensure that flood insurance rate maps 
                      incorporate the best available climate science to 
                      assess flood risks; and
                          (ii) ensure that the Federal Emergency 
                      Management Agency uses the best available 
                      methodology to consider the impact of--
                                    (I) the rise in the sea level; and
                                    (II) future development on flood 
                                risk; and
                    (B) not later than 1 year after the date of 
                enactment of this Act, prepare written recommendations 
                in a future conditions risk assessment and modeling 
                report and to submit such recommendations to the 
                Administrator.
            (2) Responsibility of the administrator.--The Administrator, 
        as part of the ongoing program to review and update National 
        Flood Insurance Program rate maps under section 100216, shall 
        incorporate any future risk assessment submitted under paragraph 
        (1)(B) in any such revision or update.

    (e) Chairperson.--The members of the Council shall elect 1 member to 
serve as the chairperson of the Council (in this section referred to as 
the ``Chairperson'').
    (f) Coordination.--To ensure that the Council's recommendations are 
consistent, to the maximum extent practicable, with national digital 
spatial data collection and management standards, the Chairperson shall 
consult with the Chairperson of the Federal Geographic Data Committee 
(established pursuant to Office of Management and Budget Circular A-16).
    (g) Compensation.--Members of the Council shall receive no 
additional compensation by reason of their service on the Council.
    (h) Meetings and Actions.--
            (1) In general.--The Council shall meet not less frequently 
        than twice each year at the request of the Chairperson or a 
        majority of its members, and may take action by a vote of the 
        majority of the members.
            (2) Initial meeting.--The Administrator, or a person 
        designated by the Administrator, shall request and coordinate 
        the initial meeting of the Council.

[[Page 126 STAT. 927]]

    (i) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    (j) Staff.--
            (1) Staff of fema.--Upon the request of the Chairperson, the 
        Administrator may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the Council 
        in carrying out its duties.
            (2) Staff of other federal agencies.--Upon request of the 
        Chairperson, any other Federal agency that is a member of the 
        Council may detail, on a nonreimbursable basis, personnel to 
        assist the Council in carrying out its duties.

    (k) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as it considers appropriate.
    (l) Report to Congress.--The Administrator, on an annual basis, 
shall report to the Committee on Banking, Housing, and Urban Affairs of 
the Senate, the Committee on Financial Services of the House of 
Representatives, and the Office of Management and Budget on the--
            (1) recommendations made by the Council;
            (2) actions taken by the Federal Emergency Management Agency 
        to address such recommendations to improve flood insurance rate 
        maps and flood risk data; and
            (3) any recommendations made by the Council that have been 
        deferred or not acted upon, together with an explanatory 
        statement.
SEC. <<NOTE: 42 USC 4101b.>> 100216. NATIONAL FLOOD MAPPING 
                              PROGRAM.

    (a) Reviewing, Updating, and Maintaining Maps.--The Administrator, 
in coordination with the Technical Mapping Advisory Council established 
under section 100215, shall establish an ongoing program under which the 
Administrator shall review, update, and maintain National Flood 
Insurance Program rate maps in accordance with this section.
    (b) Mapping.--
            (1) In general.--In carrying out the program established 
        under subsection (a), the Administrator shall--
                    (A) identify, review, update, maintain, and publish 
                National Flood Insurance Program rate maps with respect 
                to--
                          (i) all populated areas and areas of possible 
                      population growth located within the 100-year 
                      floodplain;
                          (ii) all populated areas and areas of possible 
                      population growth located within the 500-year 
                      floodplain;
                          (iii) areas of residual risk, including areas 
                      that are protected by levees, dams, and other 
                      flood control structures;
                          (iv) areas that could be inundated as a result 
                      of the failure of a levee, dam, or other flood 
                      control structure; and
                          (v) the level of protection provided by flood 
                      control structures;
                    (B) establish or update flood-risk zone data in all 
                such areas, and make estimates with respect to the rates 
                of probable flood caused loss for the various flood risk 
                zones for each such area; and

[[Page 126 STAT. 928]]

                    (C) use, in identifying, reviewing, updating, 
                maintaining, or publishing any National Flood Insurance 
                Program rate map required under this section or under 
                the National Flood Insurance Act of 1968 (42 U.S.C. 4011 
                et seq.), the most accurate topography and elevation 
                data available.
            (2) Mapping elements.--Each map updated under this section 
        shall--
                    (A) assess the accuracy of current ground elevation 
                data used for hydrologic and hydraulic modeling of 
                flooding sources and mapping of the flood hazard and 
                wherever necessary acquire new ground elevation data 
                utilizing the most up-to-date geospatial technologies in 
                accordance with guidelines and specifications of the 
                Federal Emergency Management Agency; and
                    (B) develop National Flood Insurance Program flood 
                data on a watershed basis--
                          (i) to provide the most technically effective 
                      and efficient studies and hydrologic and hydraulic 
                      modeling; and
                          (ii) to eliminate, to the maximum extent 
                      possible, discrepancies in base flood elevations 
                      between adjacent political subdivisions.
            (3) Other inclusions.--In updating maps under this section, 
        the Administrator shall include--
                    (A) any relevant information on coastal inundation 
                from--
                          (i) an applicable inundation map of the Corps 
                      of Engineers; and
                          (ii) data of the National Oceanic and 
                      Atmospheric Administration relating to storm surge 
                      modeling;
                    (B) any relevant information of the United States 
                Geological Survey on stream flows, watershed 
                characteristics, and topography that is useful in the 
                identification of flood hazard areas, as determined by 
                the Administrator;
                    (C) any relevant information on land subsidence, 
                coastal erosion areas, changing lake levels, and other 
                flood-related hazards;
                    (D) any relevant information or data of the National 
                Oceanic and Atmospheric Administration and the United 
                States Geological Survey relating to the best available 
                science regarding future changes in sea levels, 
                precipitation, and intensity of hurricanes; and
                    (E) any other relevant information as may be 
                recommended by the Technical Mapping Advisory Committee.

    (c) Standards.--In updating and maintaining maps under this section, 
the Administrator shall--
            (1) establish standards to--
                    (A) ensure that maps are adequate for--
                          (i) flood risk determinations; and
                          (ii) use by State and local governments in 
                      managing development to reduce the risk of 
                      flooding; and
                    (B) facilitate identification and use of consistent 
                methods of data collection and analysis by the 
                Administrator, in conjunction with State and local 
                governments, in developing maps for communities with 
                similar flood risks, as determined by the Administrator; 
                and

[[Page 126 STAT. 929]]

            (2) publish maps in a format that is--
                    (A) digital geospatial data compliant;
                    (B) compliant with the open publishing and data 
                exchange standards established by the Open Geospatial 
                Consortium; and
                    (C) aligned with official data defined by the 
                National Geodetic Survey.

    (d) Communication and Outreach.--
            (1) In general.--The Administrator shall--
                    (A) work to enhance communication and outreach to 
                States, local communities, and property owners about the 
                effects--
                          (i) of any potential changes to National Flood 
                      Insurance Program rate maps that may result from 
                      the mapping program required under this section; 
                      and
                          (ii) that any such changes may have on flood 
                      insurance purchase requirements;
                    (B) engage with local communities to enhance 
                communication and outreach to the residents of such 
                communities, including tenants (with regard to contents 
                insurance), on the matters described under subparagraph 
                (A); and
                    (C) <<NOTE: Notification.>>  upon the issuance of 
                any proposed map and any notice of an opportunity to 
                make an appeal relating to the proposed map, notify the 
                Senators for each State affected and each Member of the 
                House of Representatives for each congressional district 
                affected by the proposed map of any action taken by the 
                Administrator with respect to the proposed map or an 
                appeal relating to the proposed map.
            (2) Required activities.--The communication and outreach 
        activities required under paragraph (1) shall include--
                    (A) <<NOTE: Notification.>>  notifying property 
                owners when their properties become included in, or when 
                they are excluded from, an area covered by the mandatory 
                flood insurance purchase requirement under section 102 
                of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a);
                    (B) educating property owners regarding the flood 
                risk and reduction of this risk in their community, 
                including the continued flood risks to areas that are no 
                longer subject to the flood insurance mandatory purchase 
                requirement;
                    (C) educating property owners regarding the benefits 
                and costs of maintaining or acquiring flood insurance, 
                including, where applicable, lower-cost preferred risk 
                policies under the National Flood Insurance Act of 1968 
                (42 U.S.C. 4011 et seq.) for such properties and the 
                contents of such properties;
                    (D) educating property owners about flood map 
                revisions and the process available to such owners to 
                appeal proposed changes in flood elevations through 
                their community, including by notifying local radio and 
                television stations; and
                    (E) encouraging property owners to maintain or 
                acquire flood insurance coverage.

    (e) Community Remapping Request.--Upon the adoption by the 
Administrator of any recommendation by the Technical Mapping Advisory 
Council for reviewing, updating, or maintaining National Flood Insurance 
Program rate maps in accordance with this section,

[[Page 126 STAT. 930]]

a community that believes that its flood insurance rates in effect prior 
to adoption would be affected by the adoption of such recommendation may 
submit a request for an update of its rate maps, which may be considered 
at the Administrator's sole discretion. The 
Administrator <<NOTE: Protocol. Evaluation.>> shall establish a protocol 
for the evaluation of such community map update requests.

    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator to carry out this section $400,000,000 
for each of fiscal years 2013 through 2017.
SEC. 100217. SCOPE OF APPEALS.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``and designating areas having 
                special flood hazards'' after ``flood elevations''; and
                    (B) by striking ``such determinations'' and 
                inserting ``such determinations and designations''; and
            (2) in subsection (b)--
                    (A) in the first sentence, by inserting ``and 
                designations of areas having special flood hazards'' 
                after ``flood elevation determinations''; and
                    (B) by amending the third sentence to read as 
                follows: ``The sole grounds for appeal shall be the 
                possession of knowledge or information indicating that 
                (1) the elevations being proposed by the Administrator 
                with respect to an identified area having special flood 
                hazards are scientifically or technically incorrect, or 
                (2) the designation of an identified special flood 
                hazard area is scientifically or technically 
                incorrect.''.
SEC. 100218. SCIENTIFIC RESOLUTION PANEL.

    (a) Establishment.--Chapter III of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101 et seq.) is amended by inserting after section 
1363 (42 U.S.C. 4104) the following:
``SEC. 1363A. <<NOTE: 42 USC 4104-1.>> SCIENTIFIC RESOLUTION 
                            PANEL.

    ``(a) Availability.--
            ``(1) In general.--Pursuant to the authority provided under 
        section 1363(e), the Administrator shall make available an 
        independent review panel, to be known as the Scientific 
        Resolution Panel, to any community--
                    ``(A) that has--
                          ``(i) filed a timely map appeal in accordance 
                      with section 1363;
                          ``(ii) completed 60 days of consultation with 
                      the Federal Emergency Management Agency on the 
                      appeal; and
                          ``(iii) not allowed more than 120 days, or 
                      such longer period as may be provided by the 
                      Administrator by waiver, to pass since the end of 
                      the appeal period; or
                    ``(B) that has received an unsatisfactory ruling 
                under the map revision process established pursuant to 
                section 1360(f).
            ``(2) Appeals by owners and lessees.--If a community and an 
        owner or lessee of real property within the community

[[Page 126 STAT. 931]]

        appeal a proposed determination of a flood elevation under 
        section 1363(b), upon the request of the community--
                    ``(A) the owner or lessee shall submit scientific 
                and technical data relating to the appeals to the 
                Scientific Resolution Panel; and
                    ``(B) <<NOTE: Determination.>>  the Scientific 
                Resolution Panel shall make a determination with respect 
                to the appeals in accordance with subsection (c).
            ``(3) Definition.--For purposes of paragraph (1)(B), an 
        `unsatisfactory ruling' means that a community--
                    ``(A) received a revised Flood Insurance Rate Map 
                from the Federal Emergency Management Agency, via a 
                Letter of Final Determination, after September 30, 2008, 
                and prior to the date of enactment of this section;
                    ``(B) has subsequently applied for a Letter of Map 
                Revision or Physical Map Revision with the Federal 
                Emergency Management Agency; and
                    ``(C) has received an unfavorable ruling on their 
                request for a map revision.

    ``(b) Membership.--The Scientific Resolution Panel made available 
under subsection (a) shall consist of 5 members with expertise that 
relates to the creation and study of flood hazard maps and flood 
insurance. The Scientific Resolution Panel may include representatives 
from Federal agencies not involved in the mapping study in question and 
from other impartial experts. Employees of the Federal Emergency 
Management Agency may not serve on the Scientific Resolution Panel.
    ``(c) Determination.--
            ``(1) <<NOTE: Deadline.>>  In general.--Following 
        deliberations, and not later than 90 days after its formation, 
        the Scientific Resolution Panel shall issue a determination of 
        resolution of the dispute. Such determination shall set forth 
        recommendations for the base flood elevation determination or 
        the designation of an area having special flood hazards that 
        shall be reflected in the Flood Insurance Rate Maps.
            ``(2) Basis.--The determination of the Scientific Resolution 
        Panel shall be based on--
                    ``(A) data previously provided to the Administrator 
                by the community, and, in the case of a dispute 
                submitted under subsection (a)(2), an owner or lessee of 
                real property in the community; and
                    ``(B) data provided by the Administrator.
            ``(3) No alternative determinations permissible.--The 
        Scientific Resolution Panel--
                    ``(A) shall provide a determination of resolution of 
                a dispute that--
                          ``(i) is either in favor of the Administrator 
                      or in favor of the community on each distinct 
                      element of the dispute; or
                          ``(ii) in the case of a dispute submitted 
                      under subsection (a)(2), is in favor of the 
                      Administrator, in favor of the community, or in 
                      favor of the owner or lessee of real property in 
                      the community on each distinct element of the 
                      dispute; and
                    ``(B) may not offer as a resolution any other 
                alternative determination.
            ``(4) Effect of determination.--

[[Page 126 STAT. 932]]

                    ``(A) Binding.--The recommendations of the 
                Scientific Resolution Panel shall be binding on all 
                appellants and not subject to further judicial review 
                unless the Administrator determines that implementing 
                the determination of the panel would--
                          ``(i) pose a significant threat due to failure 
                      to identify a substantial risk of special flood 
                      hazards; or
                          ``(ii) violate applicable law.
                    ``(B) <<NOTE: Deadline.>>  Written justification not 
                to enforce.--If the Administrator elects not to 
                implement the determination of the Scientific Resolution 
                Panel pursuant to subparagraph (A), then not later than 
                60 days after the issuance of the determination, the 
                Administrator shall issue a written justification 
                explaining such election.
                    ``(C) Appeal of determination not to enforce.--If 
                the Administrator elects not to implement the 
                determination of the Scientific Resolution Panel 
                pursuant to subparagraph (A), the community may appeal 
                the determination of the Administrator as provided for 
                under section 1363(g).

    ``(d) Maps Used for Insurance and Mandatory Purchase Requirements.--
With respect to any community that has a dispute that is being 
considered by the Scientific Resolution Panel formed pursuant to this 
subsection, the Federal Emergency Management Agency shall ensure that 
for each such community that--
            ``(1) the Flood Insurance Rate Map described in the most 
        recently issued Letter of Final Determination shall be in force 
        and effect with respect to such community; and
            ``(2) flood insurance shall continue to be made available to 
        the property owners and residents of the participating 
        community.''.

    (b) <<NOTE: 42 USC 4104.>>  Conforming Amendments.--
            (1) Administrative review.--Section 1363(e) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended, in 
        the second sentence, by striking ``an independent scientific 
        body or appropriate Federal agency for advice'' and inserting 
        ``the Scientific Resolution Panel provided for in section 
        1363A''.
            (2) Judicial review.--The first sentence of section 1363(g) 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g)) 
        is amended by striking ``Any appellant'' and inserting ``Except 
        as provided in section 1363A, any appellant''.
SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR 
                              UPDATING FLOOD MAPS.

    Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(f)(2)) is amended by striking ``, but which may not exceed 
50 percent of the cost of carrying out the requested revision or 
update''.
SEC. <<NOTE: 42 USC 4101c.>> 100220. COORDINATION.

    (a) Interagency Budget Crosscut and Coordination Report.--
            (1) In general.--The Secretary of Homeland Security, the 
        Administrator, the Director of the Office of Management and 
        Budget, and the heads of each Federal department or agency 
        carrying out activities under sections 100215 and 100216 shall 
        work together to ensure that flood risk determination data and 
        geospatial data are shared among Federal agencies in

[[Page 126 STAT. 933]]

        order to coordinate the efforts of the Nation to reduce its 
        vulnerability to flooding hazards.
            (2) <<NOTE: Certification.>>  Report.--Not later than 30 
        days after the submission of the budget of the United States 
        Government by the President to Congress, the Director of the 
        Office of Management and Budget, in coordination with the 
        Federal Emergency Management Agency, the United States 
        Geological Survey, the National Oceanic and Atmospheric 
        Administration, the Corps of Engineers, and other Federal 
        agencies, as appropriate, shall submit to the appropriate 
        authorizing and appropriating committees of the Senate and the 
        House of Representatives an interagency budget crosscut and 
        coordination report, certified by the Secretary or head of each 
        such agency, that--
                    (A) contains an interagency budget crosscut report 
                that displays relevant sections of the budget proposed 
                for each of the Federal agencies working on flood risk 
                determination data and digital elevation models, 
                including any planned interagency or intra-agency 
                transfers; and
                    (B) describes how the efforts aligned with such 
                sections complement one another.

    (b) Duties of the Administrator.--In carrying out sections 100215 
and 100216, the Administrator shall--
            (1) participate, pursuant to section 216 of the E-Government 
        Act of 2002 (44 U.S.C. 3501 note), in the establishment of such 
        standards and common protocols as are necessary to assure the 
        interoperability of geospatial data for all users of such 
        information;
            (2) coordinate with, seek assistance and cooperation of, and 
        provide a liaison to the Federal Geographic Data Committee 
        pursuant to the Office of Management and Budget Circular A-16 
        and Executive Order 12906 (43 U.S.C. 1457 note; relating to the 
        National Spatial Data Infrastructure) for the implementation of 
        and compliance with such standards;
            (3) integrate with, leverage, and coordinate funding of, to 
        the maximum extent practicable, the current flood mapping 
        activities of each unit of State and local government;
            (4) integrate with, leverage, and coordinate, to the maximum 
        extent practicable, the current geospatial activities of other 
        Federal agencies and units of State and local government; and
            (5) develop a funding strategy to leverage and coordinate 
        budgets and expenditures, and to maintain or establish joint 
        funding and other agreement mechanisms with other Federal 
        agencies and units of State and local government to share in the 
        collection and utilization of geospatial data among all 
        governmental users.
SEC. 100221. INTERAGENCY COORDINATION STUDY.

    (a) <<NOTE: Contracts.>>  In General.--The Administrator shall enter 
into a contract with the National Academy of Public Administration to 
conduct a study on how the Federal Emergency Management Agency--
            (1) should improve interagency and intergovernmental 
        coordination on flood mapping, including a funding strategy to 
        leverage and coordinate budgets and expenditures; and
            (2) can establish joint funding mechanisms with other 
        Federal agencies and units of State and local government to 
        share

[[Page 126 STAT. 934]]

        the collection and utilization of data among all governmental 
        users.

    (b) <<NOTE: Reports.>>  Timing.--A contract entered into under 
subsection (a) shall require that, not later than 180 days after the 
date of enactment of this subtitle, the National Academy of Public 
Administration shall report the findings of the study required under 
subsection (a) to--
            (1) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate;
            (2) the Committee on Financial Services of the House of 
        Representatives;
            (3) the Committee on Appropriations of the Senate; and
            (4) the Committee on Appropriations of the House of 
        Representatives.
SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

    Section 5(b) of the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Public Law 111-203; 124 Stat. 
2174), is amended by adding at the end the following:
            ``(14) An explanation of flood insurance and the 
        availability of flood insurance under the National Flood 
        Insurance Program or from a private insurance company, whether 
        or not the real estate is located in an area having special 
        flood hazards.''.
SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                              PROGRAMS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by inserting after section 1313 (42 U.S.C. 
4020) the following:
``SEC. 1314. <<NOTE: 42 USC 4021.>> PARTICIPATION IN STATE 
                          DISASTER CLAIMS MEDIATION PROGRAMS.

    ``(a) Requirement To Participate.--In the case of the occurrence of 
a major disaster, as defined in section 102 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), that may 
have resulted in flood damage covered under the national flood insurance 
program established under this title and other personal lines 
residential property insurance coverage offered by a State regulated 
insurer, upon a request made by the insurance commissioner of a State 
(or such other official responsible for regulating the business of 
insurance in the State) for the participation of representatives of the 
Administrator in a program sponsored by such State for nonbinding 
mediation of insurance claims resulting from a major disaster, the 
Administrator shall cause representatives of the national flood 
insurance program to participate in such a State program where claims 
under the national flood insurance program are involved to expedite 
settlement of flood damage claims resulting from such disaster.
    ``(b) Extent of Participation.--In satisfying the requirements of 
subsection (a), the Administrator shall require that each representative 
of the Administrator--
            ``(1) <<NOTE: Certification.>>  be certified for purposes of 
        the national flood insurance program to settle claims against 
        such program resulting from such disaster in amounts up to the 
        limits of policies under such program;

[[Page 126 STAT. 935]]

            ``(2) <<NOTE: Mediation.>>  attend State-sponsored mediation 
        meetings regarding flood insurance claims resulting from such 
        disaster at such times and places as may be arranged by the 
        State;
            ``(3) participate in good-faith negotiations toward the 
        settlement of such claims with policyholders of coverage made 
        available under the national flood insurance program; and
            ``(4) finalize the settlement of such claims on behalf of 
        the national flood insurance program with such policyholders.

    ``(c) Coordination.--Representatives of the Administrator shall at 
all times coordinate their activities with insurance officials of the 
State and representatives of insurers for the purposes of consolidating 
and expediting settlement of claims under the national flood insurance 
program resulting from such disaster.
    ``(d) Qualifications of Mediators.--Each State mediator 
participating in State-sponsored mediation under this section shall be--
            ``(1)(A) a member in good standing of the State bar in the 
        State in which the mediation is to occur with at least 2 years 
        of practical experience; and
            ``(B) an active member of such bar for at least 1 year prior 
        to the year in which such mediator's participation is sought; or
            ``(2) a retired trial judge from any United States 
        jurisdiction who was a member in good standing of the bar in the 
        State in which the judge presided for at least 5 years prior to 
        the year in which such mediator's participation is sought.

    ``(e) Mediation Proceedings and Documents Privileged.--As a 
condition of participation, all statements made and documents produced 
pursuant to State-sponsored mediation involving representatives of the 
Administrator shall be deemed privileged and confidential settlement 
negotiations made in anticipation of litigation.
    ``(f) Liability, Rights, or Obligations Not Affected.--Participation 
in State-sponsored mediation, as described in this section does not--
            ``(1) affect or expand the liability of any party in 
        contract or in tort; or
            ``(2) affect the rights or obligations of the parties, as 
        established--
                    ``(A) in any regulation issued by the Administrator, 
                including any regulation relating to a standard flood 
                insurance policy;
                    ``(B) under this title; and
                    ``(C) under any other provision of Federal law.

    ``(g) Exclusive Federal Jurisdiction.--Participation in State-
sponsored mediation shall not alter, change, or modify the original 
exclusive jurisdiction of United States courts, as set forth in this 
title.
    ``(h) Cost Limitation.--Nothing in this section shall be construed 
to require the Administrator or a representative of the Administrator to 
pay additional mediation fees relating to flood insurance claims 
associated with a State-sponsored mediation program in which such 
representative of the Administrator participates.
    ``(i) Exception.--In the case of the occurrence of a major disaster 
that results in flood damage claims under the national flood

[[Page 126 STAT. 936]]

insurance program and that does not result in any loss covered by a 
personal lines residential property insurance policy--
            ``(1) this section shall not apply; and
            ``(2) the provisions of the standard flood insurance policy 
        under the national flood insurance program and the appeals 
        process established under section 205 of the Bunning-Bereuter-
        Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
        note) and the regulations issued pursuant to such section shall 
        apply exclusively.

    ``(j) <<NOTE: Definition.>>  Representatives of the Administrator.--
For purposes of this section, the term `representatives of the 
Administrator' means representatives of the national flood insurance 
program who participate in the appeals process established under section 
205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 
2004 (42 U.S.C. 4011 note).''.
SEC. 100224. <<NOTE: 42 USC 4081 note.>> OVERSIGHT AND EXPENSE 
                              REIMBURSEMENTS OF INSURANCE 
                              COMPANIES.

    (a) Submission of Biennial Reports.--
            (1) To the administrator.--Not later than 20 days after the 
        date of enactment of this Act, each property and casualty 
        insurance company participating in the Write Your Own program 
        shall submit to the Administrator any biennial report required 
        by the Federal Emergency Management Agency to be prepared in the 
        prior 5 years by such company.
            (2) To gao.--Not later than 10 days after the submission of 
        the biennial reports under paragraph (1), the Administrator 
        shall submit all such reports to the Comptroller General of the 
        United States.
            (3) Notice to congress of failure to comply.--The 
        Administrator shall notify and report to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        on any property and casualty insurance company participating in 
        the Write Your Own program that failed to submit its biennial 
        reports as required under paragraph (1).
            (4) Failure to comply.--A property and casualty insurance 
        company participating in the Write Your Own program which fails 
        to comply with the reporting requirement under this subsection 
        or the requirement under section 62.23(j)(1) of title 44, Code 
        of Federal Regulations (relating to biennial audit of the flood 
        insurance financial statements) shall be subject to a civil 
        penalty in an amount of not more than $1,000 per day for each 
        day that the company remains in noncompliance with either such 
        requirement.

    (b) Methodology To Determine Reimbursed Expenses.--Not later 
than <<NOTE: Deadline.>> 180 days after the date of enactment of this 
Act, the Administrator shall develop a methodology for determining the 
appropriate amounts that property and casualty insurance companies 
participating in the Write Your Own program should be reimbursed for 
selling, writing, and servicing flood insurance policies and adjusting 
flood insurance claims on behalf of the National Flood Insurance 
Program. The methodology shall be developed using actual expense data 
for the flood insurance line and can be derived from--
            (1) flood insurance expense data produced by the property 
        and casualty insurance companies;

[[Page 126 STAT. 937]]

            (2) flood insurance expense data collected by the National 
        Association of Insurance Commissioners; or
            (3) a combination of the methodologies described in 
        paragraphs (1) and (2).

    (c) Submission of Expense Reports.--To develop the methodology 
established under subsection (b), the Administrator may require each 
property and casualty insurance company participating in the Write Your 
Own program to submit a report to the Administrator, in a format 
determined by the Administrator and within 60 days of the request, that 
details the expense levels of each such company for selling, writing, 
and servicing standard flood insurance policies and adjusting and 
servicing claims.
    (d) FEMA Rulemaking on Reimbursement of Expenses Under the Write 
Your Own Program.--Not later than <<NOTE: Deadline.>> 12 months after 
the date of enactment of this Act, the Administrator shall issue a rule 
to formulate revised expense reimbursements to property and casualty 
insurance companies participating in the Write Your Own program for 
their expenses (including their operating and administrative expenses 
for adjustment of claims) in selling, writing, and servicing standard 
flood insurance policies, including how such companies shall be 
reimbursed in both catastrophic and noncatastrophic years. Such 
reimbursements shall be structured to ensure reimbursements track the 
actual expenses, including standard business costs and operating 
expenses, of such companies as closely as practicably possible.

    (e) Report of the Administrator.--Not later than 60 days after the 
effective date of the final rule issued pursuant to subsection (d), the 
Administrator shall submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives a report containing--
            (1) the specific rationale and purposes of such rule;
            (2) the reasons for the adoption of the policies contained 
        in such rule; and
            (3) the degree to which such rule accurately represents the 
        true operating costs and expenses of property and casualty 
        insurance companies participating in the Write Your Own program.

    (f) GAO Study and Report on Expenses of Write Your Own Program.--
            (1) Study.--Not later than 180 days after the effective date 
        of the final rule issued pursuant to subsection (d), the 
        Comptroller General of the United States shall--
                    (A) conduct a study on the efficacy, adequacy, and 
                sufficiency of the final rules issued pursuant to 
                subsection (d); and
                    (B) report to the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives on 
                the findings of the study conducted under subparagraph 
                (A).
            (2) GAO authority.--In conducting the study and report 
        required under paragraph (1), the Comptroller General--
                    (A) may use any previous findings, studies, or 
                reports that the Comptroller General previously 
                completed on the Write Your Own program;
                    (B) <<NOTE: Determination.>>  shall determine if--

[[Page 126 STAT. 938]]

                          (i) the final rule issued pursuant to 
                      subsection (d) allows the Federal Emergency 
                      Management Agency to access adequate information 
                      regarding the actual expenses of property and 
                      casualty insurance companies participating in the 
                      Write Your Own program; and
                          (ii) the actual reimbursements paid out under 
                      the final rule issued pursuant to subsection (d) 
                      accurately reflect the expenses reported by 
                      property and casualty insurance companies 
                      participating in the Write Your Own program, 
                      including the standard business costs and 
                      operating expenses of such companies; and
                    (C) shall analyze the effect of the final rule 
                issued pursuant to subsection (d) on the level of 
                participation of property and casualty insurers in the 
                Write Your Own program.
SEC. 100225. MITIGATION.

    (a) Mitigation Assistance Grants.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) by striking subsections (b), (d), (f), (g), (h), (k), 
        and (m);
            (2) by redesignating subsections (c), (e), (i), and (j) as 
        subsections (b), (c), (e), and (f), respectively;
            (3) in subsection (a), by striking the last sentence and 
        inserting the following: ``Such financial assistance shall be 
        made available--
            ``(1) to States and communities in the form of grants under 
        this section for carrying out mitigation activities;
            ``(2) to States and communities in the form of grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to severe repetitive loss structures; and
            ``(3) to property owners in the form of direct grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to individual structures for which 2 or more claim 
        payments for losses have been made under flood insurance 
        coverage under this title if the Administrator, after 
        consultation with the State and community, determines that 
        neither the State nor community in which such a structure is 
        located has the capacity to manage such grants.'';
            (4) in subsection (b), as so redesignated, in the first 
        sentence--
                    (A) by striking ``and provides protection against'' 
                and inserting ``provides for reduction of''; and
                    (B) by inserting before the period at the end the 
                following: ``, and may be included in a multihazard 
                mitigation plan'';
            (5) in subsection (c), as so redesignated--
                    (A) in paragraph (1), by striking ``(1) Use of 
                amounts.--'' and all that follows through the end of the 
                first sentence and inserting the following:
            ``(1) Requirement of consistency with approved mitigation 
        plan.--Amounts provided under this section may be used only for 
        mitigation activities that are consistent with mitigation plans 
        that are approved by the Administrator and identified under 
        paragraph (4).'';

[[Page 126 STAT. 939]]

                    (B) by striking paragraphs (2), (3), and (4) and 
                inserting the following new paragraphs:
            ``(2) Requirements of technical feasibility, cost 
        effectiveness, and interest of national flood insurance fund.--
                    ``(A) In general.--The Administrator may approve 
                only mitigation activities that the Administrator 
                determines--
                          ``(i) are technically feasible and cost-
                      effective; or
                          ``(ii) will eliminate future payments from the 
                      National Flood Insurance Fund for severe 
                      repetitive loss structures through an acquisition 
                      or relocation activity.
                    ``(B) Considerations.--In making a determination 
                under subparagraph (A), the Administrator shall take 
                into consideration recognized ancillary benefits.'';
                    (C) by redesignating paragraph (5) as paragraph (3);
                    (D) in paragraph (3), as so redesignated--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``The Director'' and all that follows 
                      through ``Such activities may'' and inserting 
                      ``Eligible activities under a mitigation plan 
                      may'';
                          (ii) by striking subparagraphs (E) and (H);
                          (iii) by redesignating subparagraphs (D), (F), 
                      and (G) as subparagraphs (E), (G), and (H), 
                      respectively;
                          (iv) by inserting after subparagraph (C) the 
                      following new subparagraph:
                    ``(D) elevation, relocation, or floodproofing of 
                utilities (including equipment that serves 
                structures);'';
                          (v) by inserting after subparagraph (E), as so 
                      redesignated, the following new subparagraph:
                    ``(F) the development or update of mitigation plans 
                by a State or community which meet the planning criteria 
                established by the Administrator, except that the amount 
                from grants under this section that may be used under 
                this subparagraph may not exceed $50,000 for any 
                mitigation plan of a State or $25,000 for any mitigation 
                plan of a community;'';
                          (vi) in subparagraph (H); as so redesignated, 
                      by striking ``and'' at the end; and
                          (vii) by adding at the end the following new 
                      subparagraphs:
                    ``(I) other mitigation activities not described in 
                subparagraphs (A) through (G) or the regulations issued 
                under subparagraph (H), that are described in the 
                mitigation plan of a State or community; and
                    ``(J) without regard to the requirements under 
                paragraphs (1) and (2) of subsection (d), and if the 
                State applied for and was awarded at least $1,000,000 in 
                grants available under this section in the prior fiscal 
                year, technical assistance to communities to identify 
                eligible activities, to develop grant applications, and 
                to implement grants awarded under this section, not to 
                exceed $50,000 to any 1 State in any fiscal year.''; and
                    (E) by striking paragraph (6) and inserting the 
                following:

[[Page 126 STAT. 940]]

            ``(4) Eligibility of demolition and rebuilding of 
        properties.--The Administrator shall consider as an eligible 
        activity the demolition and rebuilding of properties to at least 
        base flood elevation or greater, if required by the 
        Administrator or if required by any State regulation or local 
        ordinance, and in accordance with criteria established by the 
        Administrator.'';
            (6) by inserting after subsection (c), as so redesignated, 
        the following new subsection:

    ``(d) Matching Requirement.--The Administrator may provide grants 
for eligible mitigation activities as follows:
            ``(1) Severe repetitive loss structures.--In the case of 
        mitigation activities to severe repetitive loss structures, in 
        an amount up to--
                    ``(A) 100 percent of all eligible costs, if the 
                activities are approved under subsection (c)(2)(A)(i); 
                or
                    ``(A) the expected savings to the National Flood 
                Insurance Fund from expected avoided damages through 
                acquisition or relocation activities, if the activities 
                are approved under subsection (c)(2)(A)(ii).
            ``(2) Repetitive loss structures.--In the case of mitigation 
        activities to repetitive loss structures, in an amount up to 90 
        percent of all eligible costs.
            ``(3) Other mitigation activities.--In the case of all other 
        mitigation activities, in an amount up to 75 percent of all 
        eligible costs.''.
            (7) in subsection (e)(2), as so redesignated--
                    (A) by striking ``certified under subsection (g)'' 
                and inserting ``required under subsection (d)''; and
                    (B) by striking ``3 times the amount'' and inserting 
                ``the amount'';
            (8) in subsection (f), as so redesignated, by striking 
        ``Riegle Community Development and Regulatory Improvement Act of 
        1994'' and inserting ``Biggert-Waters Flood Insurance Reform Act 
        of 2012''; and
            (9) by adding at the end the following new subsections:

    ``(g) Failure To Make Grant Award Within 5 Years.--For any 
application for a grant under this section for which the Administrator 
fails to make a grant award within 5 years of the date of the 
application, the grant application shall be considered to be denied and 
any funding amounts allocated for such grant applications shall remain 
in the National Flood Mitigation Fund under section 1367 of this title 
and shall be made available for grants under this section.
    ``(h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Community.--The term `community' means--
                    ``(A) a political subdivision that--
                          ``(i) has zoning and building code 
                      jurisdiction over a particular area having special 
                      flood hazards; and
                          ``(ii) is participating in the national flood 
                      insurance program; or
                    ``(B) a political subdivision of a State, or other 
                authority, that is designated by political subdivisions, 
                all of which meet the requirements of subparagraph (A), 
                to administer grants for mitigation activities for such 
                political subdivisions.

[[Page 126 STAT. 941]]

            ``(2) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given such term in section 1370.
            ``(3) Severe repetitive loss structure.--The term `severe 
        repetitive loss structure' means a structure that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                          ``(i) for which 4 or more separate claims 
                      payments have been made under flood insurance 
                      coverage under this title, with the amount of each 
                      such claim exceeding $5,000, and with the 
                      cumulative amount of such claims payments 
                      exceeding $20,000; or
                          ``(ii) for which at least 2 separate claims 
                      payments have been made under such coverage, with 
                      the cumulative amount of such claims exceeding the 
                      value of the insured structure.''.

    (b) Elimination of Grants Program for Repetitive Insurance Claims 
Properties.--Chapter I of the National Flood Insurance Act of 1968 is 
amended by striking section 1323 (42 U.S.C. 4030).
    (c) Elimination of Pilot Program for Mitigation of Severe Repetitive 
Loss Properties.--Chapter III of the National Flood Insurance Act of 
1968 is amended by striking section 1361A (42 U.S.C. 4102a).
    (d) National Flood Insurance Fund.--Section 1310(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (6), by inserting ``and'' after the 
        semicolon;
            (2) in paragraph (7), by striking the semicolon and 
        inserting a period; and
            (3) by striking paragraphs (8) and (9).

    (e) National Flood Mitigation Fund.--Section 1367 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) in each fiscal year, amounts from the National Flood 
        Insurance Fund not to exceed $90,000,000 and to remain available 
        until expended, of which--
                    ``(A) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(1);
                    ``(B) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(2); and
                    ``(C) not more than $10,000,000 shall be available 
                pursuant to subsection (a) of this section for 
                assistance described in section 1366(a)(3);''; and
                    (B) in paragraph (3), by striking ``section 
                1366(i)'' and inserting ``section 1366(e)'';
            (2) in subsection (c), by striking ``sections 1366 and 
        1323'' and inserting ``section 1366'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsections:

[[Page 126 STAT. 942]]

    ``(d) Prohibition on Offsetting Collections.--Notwithstanding any 
other provision of this title, amounts made available pursuant to this 
section shall not be subject to offsetting collections through premium 
rates for flood insurance coverage under this title.
    ``(e) Continued Availability and Reallocation.--Any amounts made 
available pursuant to subparagraph (A), (B), or (C) of subsection (b)(1) 
that are not used in any fiscal year shall continue to be available for 
the purposes specified in the subparagraph of subsection (b)(1) pursuant 
to which such amounts were made available, unless the Administrator 
determines that reallocation of such unused amounts to meet demonstrated 
need for other mitigation activities under section 1366 is in the best 
interest of the National Flood Insurance Fund.''.
    (f) Increased Cost of Compliance Coverage.--Section 1304(b)(4) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D), respectively.
SEC. 100226. <<NOTE: 42 USC 4101 note.>> FLOOD PROTECTION 
                              STRUCTURE ACCREDITATION TASK FORCE.

    (a) Definitions.--In this section--
            (1) the term ``flood protection structure accreditation 
        requirements'' means the requirements established under section 
        65.10 of title 44, Code of Federal Regulations, for levee 
        systems to be recognized on maps created for purposes of the 
        National Flood Insurance Program;
            (2) the term ``National Committee on Levee Safety'' means 
        the Committee on Levee Safety established under section 9003 of 
        the National Levee Safety Act of 2007 (33 U.S.C. 3302); and
            (3) the term ``task force'' means the Flood Protection 
        Structure Accreditation Task Force established under subsection 
        (b).

    (b) Establishment.--
            (1) In general.--The Administrator and the Secretary of the 
        Army, acting through the Chief of Engineers, in cooperation with 
        the National Committee on Levee Safety, shall jointly establish 
        a Flood Protection Structure Accreditation Task Force.
            (2) Duties.--
                    (A) Developing process.--The task force shall 
                develop a process to better align the information and 
                data collected by or for the Corps of Engineers under 
                the Inspection of Completed Works Program with the flood 
                protection structure accreditation requirements so 
                that--
                          (i) information and data collected for either 
                      purpose can be used interchangeably; and
                          (ii) information and data collected by or for 
                      the Corps of Engineers under the Inspection of 
                      Completed Works Program is sufficient to satisfy 
                      the flood protection structure accreditation 
                      requirements.
                    (B) Gathering recommendations.--The task force shall 
                gather, and consider in the process developed under 
                subparagraph (A), recommendations from interested 
                persons in each region relating to the information, 
                data, and accreditation requirements described in 
                subparagraph (A).

[[Page 126 STAT. 943]]

            (3) Considerations.--In developing the process under 
        paragraph (2), the task force shall consider changes to--
                    (A) the information and data collected by or for the 
                Corps of Engineers under the Inspection of Completed 
                Works Program; and
                    (B) the flood protection structure accreditation 
                requirements.
            (4) Rule of construction.--Nothing in this section shall be 
        construed to require a reduction in the level of public safety 
        and flood control provided by accredited levees, as determined 
        by the Administrator for purposes of this section.

    (c) <<NOTE: Deadlines.>>  Implementation.--The Administrator and the 
Secretary of the Army, acting through the Chief of Engineers, shall 
implement the process developed by the task force under subsection (b) 
not later than 1 year after the date of enactment of this Act and shall 
complete the process under subsection (b) not later than 2 years after 
the date of enactment of this Act.

    (d) Reports.--The Administrator and the Secretary of the Army, 
acting through the Chief of Engineers, in cooperation with the National 
Committee on Levee Safety, shall jointly submit to the Committee on 
Banking, Housing, and Urban Affairs and the Committee on Environment and 
Public Works of the Senate and the Committee on Financial Services, the 
Committee on Transportation and Infrastructure, and the Committee on 
Natural Resources of the House of Representatives reports concerning the 
activities of the task force and the implementation of the process 
developed by the task force under subsection (b), including--
            (1) an interim report, not later than 180 days after the 
        date of enactment of this Act; and
            (2) a final report, not later than 1 year after the date of 
        enactment of this Act.

    (e) Termination.--The task force shall terminate on the date of 
submission of the report under subsection (d)(2).
SEC. 100227. <<NOTE: 42 USC 4011 note.>> FLOOD IN PROGRESS 
                              DETERMINATIONS.

    (a) Report.--
            (1) Review.--The Administrator shall review--
                    (A) the processes and procedures for determining 
                that a flood event has commenced or is in progress for 
                purposes of flood insurance coverage made available 
                under the National Flood Insurance Program;
                    (B) the processes and procedures for providing 
                public notification that such a flood event has 
                commenced or is in progress;
                    (C) the processes and procedures regarding the 
                timing of public notification of flood insurance 
                requirements and availability; and
                    (D) the effects and implications that weather 
                conditions, including rainfall, snowfall, projected 
                snowmelt, existing water levels, and other conditions, 
                have on the determination that a flood event has 
                commenced or is in progress.
            (2) Report.--Not later than 6 months after the date of 
        enactment of this Act, the Administrator shall submit a report 
        to Congress that describes--
                    (A) the results and conclusions of the review under 
                paragraph (1); and

[[Page 126 STAT. 944]]

                    (B) any actions taken, or proposed actions to be 
                taken, by the Administrator to provide for more precise 
                and technical processes and procedures for determining 
                that a flood event has commenced or is in progress.

    (b) Effective Date of Policies Covering Properties Affected by 
Flooding of the Missouri River in 2011.--
            (1) <<NOTE: Definition. Time period.>>  Eligible coverage.--
        For purposes of this subsection, the term ``eligible coverage'' 
        means coverage under a new contract for flood insurance coverage 
        under the National Flood Insurance Program, or a modification to 
        coverage under an existing flood insurance contract, for 
        property damaged by the flooding of the Missouri River that 
        commenced on June 1, 2011, that was purchased or made during the 
        period beginning May 1, 2011, and ending June 6, 2011.
            (2) Effective dates.--Notwithstanding section 1306(c) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any 
        other provision of law, any eligible coverage shall--
                    (A) be deemed to take effect on the date that is 30 
                days after the date on which all obligations for the 
                eligible coverage (including completion of the 
                application and payment of any initial premiums owed) 
                are satisfactorily completed; and
                    (B) cover damage to property occurring after the 
                effective date described in subparagraph (A) that 
                resulted from the flooding of the Missouri River that 
                commenced on June 1, 2011, if the property did not 
                suffer damage or loss as a result of such flooding 
                before the effective date described in subparagraph (A).

    (c) <<NOTE: Procedures.>>  Timely Notification.--Not later than 90 
days after the date on which the Administrator submits the report 
required under subsection (a)(2), the Administrator shall, taking into 
consideration the results of the review under subsection (a)(1)(B), 
develop procedures for providing timely notification, to the extent 
practicable, to policyholders who have purchased flood insurance 
coverage under the National Flood Insurance Program within 30 days of a 
determination of a flood in progress and who may be affected by the 
flood of the determination and how the determination may affect their 
coverage.
SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE 
                              LIMITS.

    Section 1306(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4013(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``in the case of any residential 
                property'' and inserting ``in the case of any 
                residential building designed for the occupancy of from 
                1 to 4 families''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance 
                so as to enable such insured or applicant to receive 
                coverage up to a total amount (including such limits 
                specified in paragraph (1)(A)(i)) of $250,000'' and 
                inserting ``shall be made available, with respect to any 
                single such building, up to an aggregate liability 
                (including such limits specified in paragraph (1)(A)(i)) 
                of $250,000''; and
            (2) in paragraph (4)--

[[Page 126 STAT. 945]]

                    (A) by striking ``in the case of any nonresidential 
                property, including churches,'' and inserting ``in the 
                case of any nonresidential building, including a 
                church,''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance, 
                in respect to any single structure, up to a total amount 
                (including such limit specified in subparagraph (B) or 
                (C) of paragraph (1), as applicable) of $500,000 for 
                each structure and $500,000 for any contents related to 
                each structure'' and inserting ``shall be made available 
                with respect to any single such building, up to an 
                aggregate liability (including such limits specified in 
                subparagraph (B) or (C) of paragraph (1), as applicable) 
                of $500,000, and coverage shall be made available up to 
                a total of $500,000 aggregate liability for contents 
                owned by the building owner and $500,000 aggregate 
                liability for each unit within the building for contents 
                owned by the tenant''.
SEC. 100229. LOCAL DATA REQUIREMENT.

    (a) In General.--Notwithstanding any other provision of this 
subtitle, no area or community participating in the National Flood 
Insurance Program that is or includes a community that is identified by 
the Administrator as Community Identification Number 360467 and impacted 
by the Jamaica Bay flooding source or identified by the Administrator as 
Community Identification Number 360495 may be or become designated as an 
area having special flood hazards for purposes of the National Flood 
Insurance Program, unless the designation is made on the basis of--
            (1) flood hazard analyses of hydrologic, hydraulic, or 
        coastal flood hazards that have been properly calibrated and 
        validated, and are specific and directly relevant to the 
        geographic area being studied; and
            (2) ground elevation information of sufficient accuracy and 
        precision to meet the guidelines of the Administration for 
        accuracy at the 95 percent confidence level.

    (b) Remapping.--
            (1) <<NOTE: Determination.>>  Remapping required.--If the 
        Administrator determines that an area described in subsection 
        (a) has been designated as an area of special flood hazard on 
        the basis of information that does not comply with the 
        requirements under subsection (a), the Administrator shall 
        revise and update any National Flood Insurance Program rate map 
        for the area--
                    (A) using information that complies with the 
                requirements under subsection (a); and
                    (B) in accordance with the procedures established 
                under section 1363 of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4104) for flood elevation 
                determinations.
            (2) Interim period.--A National Flood Insurance Program rate 
        map in effect on the date of enactment of this Act for an area 
        for which the Administrator has made a determination under 
        paragraph (1) shall continue in effect with respect to the area 
        during the period--
                    (A) beginning on the date of enactment of this Act; 
                and
                    (B) ending on the date on which the Administrator 
                determines that the requirements under section 1363 of 
                the National Flood Insurance Act of 1968 (42 U.S.C. 
                4104)

[[Page 126 STAT. 946]]

                for flood elevation determinations have been met with 
                respect to a revision and update under paragraph (1) of 
                a National Flood Insurance Program rate map for the 
                area.
            (3) Deadline.--The Administrator shall issue a preliminary 
        National Flood Insurance Program rate map resulting from a 
        revision and update required under paragraph (1) not later than 
        1 year after the date of enactment of this Act.
            (4) Risk premium rate clarification.--
                    (A) In general.--If a revision and update required 
                under paragraph (1) results in a reduction in the risk 
                premium rate for a property in an area for which the 
                Administrator has made a determination under paragraph 
                (1), the Administrator shall--
                          (i) calculate the difference between the 
                      reduced risk premium rate and the risk premium 
                      rate paid by a policyholder with respect to the 
                      property during the period--
                                    (I) beginning on the date on which 
                                the National Flood Insurance Program 
                                rate map in effect for the area on the 
                                date of enactment of this Act took 
                                effect; and
                                    (II) ending on the date on which the 
                                revised or updated National Flood 
                                Insurance Program rate map takes effect; 
                                and
                          (ii) reimburse the policyholder an amount 
                      equal to such difference.
                    (B) Funding.--Notwithstanding section 1310 of the 
                National Flood Insurance Act of 1968 (42 U.S.C. 4017), 
                there shall be available to the Administrator from 
                premiums deposited in the National Flood Insurance Fund 
                pursuant to subsection (d) of such section 1310, of 
                amounts not otherwise obligated, the amount necessary to 
                carry out this paragraph.

    (c) Termination.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall cease to have effect on the effective date of a 
        National Flood Insurance Program rate map revised and updated 
        under subsection (b)(1).
            (2) Reimbursements.--Subsection (b)(4) shall cease to have 
        effect on the date on which the Administrator has made all 
        reimbursements required under subsection (b)(4).
SEC. <<NOTE: 42 USC 4014 note.>> 100230. ELIGIBILITY FOR FLOOD 
                              INSURANCE FOR PERSONS RESIDING IN 
                              COMMUNITIES THAT HAVE MADE ADEQUATE 
                              PROGRESS ON THE RECONSTRUCTION OR 
                              IMPROVEMENT OF A FLOOD PROTECTION 
                              SYSTEM.

    (a) Eligibility for Flood Insurance Coverage.--
            (1) In general.--Notwithstanding any other provision of law 
        (including section 1307(e) of the National Flood Insurance Act 
        of 1968 (42 U.S.C. 4014(e))), a person residing in a community 
        that the Administrator determines has made adequate progress on 
        the reconstruction or improvement of a flood protection system 
        that will afford flood protection for a 100-year floodplain 
        (without regard to the level of Federal funding of

[[Page 126 STAT. 947]]

        or participation in the construction, reconstruction, or 
        improvement), shall be eligible for flood insurance coverage 
        under the National Flood Insurance Program--
                    (A) if the person resides in a community that is a 
                participant in the National Flood Insurance Program; and
                    (B) at a risk premium rate that does not exceed the 
                risk premium rate that would be chargeable if the flood 
                protection system had been completed.
            (2) Adequate progress.--
                    (A) <<NOTE: Determination.>>  Reconstruction or 
                improvement.--For purposes of paragraph (1), the 
                Administrator shall determine that a community has made 
                adequate progress on the reconstruction or improvement 
                of a flood protection system if--
                          (i) 100 percent of the project cost has been 
                      authorized;
                          (ii) not less than 60 percent of the project 
                      cost has been secured or appropriated;
                          (iii) not less than 50 percent of the flood 
                      protection system has been assessed as being 
                      without deficiencies; and
                          (iv) the reconstruction or improvement has a 
                      project schedule that does not exceed 5 years, 
                      beginning on the date on which the reconstruction 
                      or construction of the improvement commences.
                    (B) Considerations.--In determining whether a flood 
                protection system has been assessed as being without 
                deficiencies, the Administrator shall consider the 
                requirements under section 65.10 of chapter 44, Code of 
                Federal Regulations, or any successor thereto.
                    (C) Date of commencement.--For purposes of 
                subparagraph (A)(iv) of this paragraph and subsection 
                (b)(2)(B), the date of commencement of the 
                reconstruction or improvement of a flood protection 
                system that is undergoing reconstruction or improvement 
                on the date of enactment of this Act shall be deemed to 
                be the date on which the owner of the flood protection 
                system submits a request under paragraph (3).
            (3) Request for determination.--The owner of a flood 
        protection system that is undergoing reconstruction or 
        improvement on the date of enactment of this Act may submit to 
        the Administrator a request for a determination under paragraph 
        (2) that the community in which the flood protection system is 
        located has made adequate progress on the reconstruction or 
        improvement of the flood protection system.
            (4) Rule of construction.--Nothing in this subsection shall 
        be construed to prohibit the Administrator from making a 
        determination under paragraph (2) for any community in which a 
        flood protection system is not undergoing reconstruction or 
        improvement on the date of enactment of this Act.

    (b) Termination of Eligibility.--
            (1) <<NOTE: Regulations.>>  Adequate continuing progress.--
        The Administrator shall issue rules to establish a method of 
        determining whether a community has made adequate continuing 
        progress on the reconstruction or improvement of a flood 
        protection system that includes--
                    (A) a requirement that the Administrator shall--

[[Page 126 STAT. 948]]

                          (i) <<NOTE: Consultation.>>  consult with the 
                      owner of the flood protection system--
                                    (I) 6 months after the date of a 
                                determination under subsection (a);
                                    (II) 18 months after the date of a 
                                determination under subsection (a); and
                                    (III) 36 months after the date of a 
                                determination under subsection (a); and
                          (ii) after each consultation under clause (i), 
                      determine whether the reconstruction or 
                      improvement is reasonably likely to be completed 
                      in accordance with the project schedule described 
                      in subsection (a)(2)(A)(iv); and
                    (B) a requirement that, if the Administrator makes a 
                determination under subparagraph (A)(ii) that 
                reconstruction or improvement is not reasonably likely 
                to be completed in accordance with the project schedule, 
                the Administrator shall--
                          (i) <<NOTE: Deadline. Notification.>>  not 
                      later than 30 days after the date of the 
                      determination, notify the owner of the flood 
                      protection system of the determination and provide 
                      the rationale and evidence for the determination; 
                      and
                          (ii) provide the owner of the flood protection 
                      system the opportunity to appeal the 
                      determination.
            (2) Termination.--The Administrator shall terminate the 
        eligibility for flood insurance coverage under subsection (a) 
        for persons residing in a community with respect to which the 
        Administrator made a determination under subsection (a) if--
                    (A) the Administrator determines that the community 
                has not made adequate continuing progress; or
                    (B) on the date that is 5 years after the date on 
                which the reconstruction or construction of the 
                improvement commences, the project has not been 
                completed.
            (3) Waiver.--A person whose eligibility would otherwise be 
        terminated under paragraph (2)(B) shall continue to be eligible 
        to purchase flood insurance coverage described in subsection (a) 
        if the Administrator determines--
                    (A) the community has made adequate continuing 
                progress on the reconstruction or improvement of a flood 
                protection system; and
                    (B) <<NOTE: Deadline.>>  there is a reasonable 
                expectation that the reconstruction or improvement of 
                the flood protection system will be completed not later 
                than 1 year after the date of the determination under 
                this paragraph.
            (4) Risk premium rate.--If the Administrator terminates the 
        eligibility of persons residing in a community to purchase flood 
        insurance coverage described in subsection (a), the 
        Administrator shall establish an appropriate risk premium rate 
        for flood insurance coverage under the National Flood Insurance 
        Program for persons residing in the community that purchased 
        flood insurance coverage before the date on which the 
        termination of eligibility takes effect, taking into 
        consideration the then-current state of the flood protection 
        system.

    (c) Additional Authority.--
            (1) Additional authority.--Notwithstanding subsection (a), 
        in exceptional and exigent circumstances, the Administrator

[[Page 126 STAT. 949]]

        may, in the Administrator's sole discretion, determine that a 
        person residing in a community, which is a participant in the 
        National Flood Insurance Program, that has begun reconstruction 
        or improvement of a flood protection system that will afford 
        flood protection for a 100-year floodplain (without regard to 
        the level of Federal funding of or participation in the 
        reconstruction or improvement) shall be eligible for flood 
        insurance coverage under the National Flood Insurance Program at 
        a risk premium rate that does not exceed the risk premium rate 
        that would be chargeable if the flood protection system had been 
        completed, provided--
                    (A) the community makes a written request for the 
                determination setting forth the exceptional and exigent 
                circumstances, including why the community cannot meet 
                the criteria for adequate progress set forth in under 
                subsection (a)(2)(A) and why immediate relief is 
                necessary;
                    (B) <<NOTE: Reports. Deadline.>>  the Administrator 
                submits a written report setting forth findings of the 
                exceptional and exigent circumstances on which the 
                Administrator based an affirmative determination to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate, and the Committee on Financial Services of the 
                House of Representatives not later than 15 days before 
                making the determination; and
                    (C) <<NOTE: Deadline.>>  the eligibility for flood 
                insurance coverage at a risk premium rate determined 
                under this subsection terminates no later than 1 year 
                after the date on which the Administrator makes the 
                determination.
            (2) Limitation.--Upon termination of eligibility under 
        paragraph (1)(C), a community may submit another request 
        pursuant to paragraph (1)(A). The Administrator may make no more 
        than two determinations under paragraph (1) with respect to 
        persons residing within any single requesting community.
            (3) Termination.--The authority provided under paragraphs 
        (1) and (2) shall terminate two years after the enactment of 
        this Act.
SEC. 100231. STUDIES AND REPORTS.

    (a) Report on Improving the National Flood Insurance Program.--Not 
later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall conduct a study and 
submit a report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, on--
            (1) the number of flood insurance policy holders currently 
        insuring--
                    (A) a residential structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of--
                          (i) $250,000 for the structure; and
                          (ii) $100,000 for the contents of such 
                      structure; or
                    (B) a commercial structure up to the maximum 
                available coverage amount, as established in section 
                61.6 of title 44, Code of Federal Regulations, of 
                $500,000;
            (2) the increased losses the National Flood Insurance 
        Program would have sustained during the 2004 and 2005 hurricane

[[Page 126 STAT. 950]]

        season if the National Flood Insurance Program had insured all 
        policyholders up to the maximum conforming loan limit for fiscal 
        year 2006 of $417,000, as established under section 302(b)(2) of 
        the Federal National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2));
            (3) the availability in the private marketplace of flood 
        insurance coverage in amounts that exceed the current limits of 
        coverage amounts established in section 61.6 of title 44, Code 
        of Federal Regulations; and
            (4) what effect, if any--
                    (A) raising the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of Federal 
                Regulations, would have on the ability of private 
                insurers to continue providing flood insurance coverage; 
                and
                    (B) reducing the current limits of coverage amounts 
                established in section 61.6 of title 44, Code of Federal 
                Regulations, would have on the ability of private 
                insurers to provide sufficient flood insurance coverage 
                to effectively replace the current level of flood 
                insurance coverage being provided under the National 
                Flood Insurance Program.

    (b) <<NOTE: 42 USC 4027a.>>  Report of the Administrator on 
Activities Under the National Flood Insurance Program.--
            (1) In general.--The Administrator shall, on an annual 
        basis, submit a full report on the operations, activities, 
        budget, receipts, and expenditures of the National Flood 
        Insurance Program for the preceding 12-month period to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives.
            (2) Timing.--Each report required under paragraph (1) shall 
        be submitted to the committees described in paragraph (1) not 
        later than 3 months following the end of each fiscal year.
            (3) Contents.--Each report required under paragraph (1) 
        shall include--
                    (A) the current financial condition and income 
                statement of the National Flood Insurance Fund 
                established under section 1310 of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4017), including--
                          (i) premiums paid into such Fund;
                          (ii) policy claims against such Fund; and
                          (iii) expenses in administering such Fund;
                    (B) the number and face value of all policies issued 
                under the National Flood Insurance Program that are in 
                force;
                    (C) a description and summary of the losses 
                attributable to repetitive loss structures;
                    (D) a description and summary of all losses incurred 
                by the National Flood Insurance Program due to--
                          (i) hurricane related damage; and
                          (ii) nonhurricane related damage;
                    (E) the amounts made available by the Administrator 
                for mitigation assistance under section 1366(c)(4) of 
                the National Flood Insurance Act of 1968 (42 U.S.C. 
                4104c(c)(4)), as so redesignated by this Act, for the 
                purchase of properties substantially damaged by flood 
                for that fiscal year, and the actual number of flood 
                damaged properties

[[Page 126 STAT. 951]]

                purchased and the total cost expended to purchase such 
                properties;
                    (F) the estimate of the Administrator as to the 
                average historical loss year, and the basis for that 
                estimate;
                    (G) the estimate of the Administrator as to the 
                maximum amount of claims that the National Flood 
                Insurance Program would have to expend in the event of a 
                catastrophic year;
                    (H) the average--
                          (i) amount of insurance carried per flood 
                      insurance policy;
                          (ii) premium per flood insurance policy; and
                          (iii) loss per flood insurance policy; and
                    (I) the number of claims involving damages in excess 
                of the maximum amount of flood insurance available under 
                the National Flood Insurance Program and the sum of the 
                amount of all damages in excess of such amount.

    (c) <<NOTE: Deadline.>>  GAO Study on Pre-FIRM Structures.--Not 
later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall conduct a study and 
submit a report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives, on the--
            (1) composition of the remaining pre-FIRM structures that 
        are explicitly receiving discounted premium rates under section 
        1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4014), including the historical basis for the receipt of such 
        subsidy and the extent to which pre-FIRM structures are 
        currently owned by the same owners of the property at the time 
        of the original National Flood Insurance Program rate map;
            (2) number and fair market value of such structures;
            (3) respective income level of the owners of such 
        structures;
            (4) number of times each such structure has been sold since 
        1968, including specific dates, sales price, and any other 
        information the Secretary determines appropriate;
            (5) total losses incurred by such structures since the 
        establishment of the National Flood Insurance Program compared 
        to the total losses incurred by all structures that are charged 
        a nondiscounted premium rate;
            (6) total cost of foregone premiums since the establishment 
        of the National Flood Insurance Program, as a result of the 
        subsidies provided to such structures;
            (7) annual cost as a result of the subsidies provided to 
        such structures;
            (8) the premium income collected and the losses incurred by 
        the National Flood Insurance Program as a result of such 
        explicitly subsidized structures compared to the premium income 
        collected and the losses incurred by such Program as a result of 
        structures that are charged a nondiscounted premium rate, on a 
        State-by-State basis; and
            (9) the options for eliminating the subsidy to such 
        structures.

    (d) GAO Review of FEMA Contractors.--The Comptroller General of the 
United States, in conjunction with the Office of the Inspector General 
of the Department of Homeland Security, shall--

[[Page 126 STAT. 952]]

            (1) conduct a review of the 3 largest contractors the 
        Administrator uses in administering the National Flood Insurance 
        Program; and
            (2) <<NOTE: Deadline. Reports.>>  not later than 18 months 
        after the date of enactment of this Act, submit a report on the 
        findings of such review to the Administrator, the Committee on 
        Banking, Housing, and Urban Affairs of the Senate, and the 
        Committee on Financial Services of the House of Representatives.

    (e) Study and Report on Graduated Risk.--
            (1) Study.--
                    (A) <<NOTE: Contracts.>>  Study required.--The 
                Administrator shall enter into a contract under which 
                the National Academy of Sciences shall conduct a study 
                exploring methods for understanding graduated risk 
                behind levees and the associated land development, 
                insurance, and risk communication dimensions.
                    (B) Contents of study.--The study under this 
                paragraph shall--
                          (i) research, review, and recommend current 
                      best practices for estimating direct annualized 
                      flood losses behind levees for residential and 
                      commercial structures;
                          (ii) rank each best practice recommended under 
                      clause (i) based on the best value, balancing 
                      cost, scientific integrity, and the inherent 
                      uncertainties associated with all aspects of the 
                      loss estimate, including geotechnical engineering, 
                      flood frequency estimates, economic value, and 
                      direct damages;
                          (iii) research, review, and identify current 
                      best floodplain management and land use practices 
                      behind levees that effectively balance social, 
                      economic, and environmental considerations as part 
                      of an overall flood risk management strategy;
                          (iv) identify areas in which the best 
                      floodplain management and land use practices 
                      described in clause (iii) have proven effective 
                      and recommend methods and processes by which such 
                      practices could be applied more broadly across the 
                      United States, given the variety of different 
                      flood risks, State and local legal frameworks, and 
                      evolving judicial opinions;
                          (v) research, review, and identify a variety 
                      of flood insurance pricing options for flood 
                      hazards behind levees that are actuarially sound 
                      and based on the flood risk data developed using 
                      the 3 best practices recommended under clause (i) 
                      that have the best value as determined under 
                      clause (ii);
                          (vi) evaluate and recommend methods to reduce 
                      insurance costs through creative arrangements 
                      between insureds and insurers while keeping a 
                      clear accounting of how much financial risk is 
                      being borne by various parties such that the 
                      entire risk is accounted for, including 
                      establishment of explicit limits on disaster aid 
                      or other assistance in the event of a flood; and
                          (vii) taking into consideration the 
                      recommendations under clauses (i) through (iii), 
                      recommend approaches to communicate the associated 
                      risks to

[[Page 126 STAT. 953]]

                      community officials, homeowners, and other 
                      residents of communities.
            (2) Report.--The contract under paragraph (1)(A) shall 
        provide that not later than 12 months after the date of 
        enactment of this Act, the National Academy of Sciences shall 
        submit to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services and the 
        Committee on Science, Space, and Technology of the House of 
        Representatives a report on the study under paragraph (1) that 
        includes the information and recommendations required under 
        paragraph (1).
SEC. 100232. REINSURANCE.

    (a) FEMA and GAO Reports on Privatization.--Not later than 18 months 
after the date of enactment of this Act, the Administrator and the 
Comptroller General of the United States shall each--
            (1) <<NOTE: Study.>>  conduct a separate study to assess a 
        broad range of options, methods, and strategies for privatizing 
        the National Flood Insurance Program; and
            (2) submit a report to the Committee on Financial Services 
        of the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate with recommendations 
        for the best manner to accomplish the privatization described in 
        paragraph (1).

    (b) Private Risk-management Initiatives.--The Administrator may 
carry out such private risk-management initiatives as are otherwise 
authorized under applicable law, as the Administrator considers 
appropriate to determine the capacity of private insurers, reinsurers, 
and financial markets to assist communities, on a voluntary basis only, 
in managing the full range of financial risks associated with flooding.
    (c) Reinsurance Assessment.--
            (1) <<NOTE: Deadline. Reports.>>  Private market pricing 
        assessment.--Not later than 12 months after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report that--
                    (A) assesses the capacity of the private 
                reinsurance, capital, and financial markets to assist 
                communities, on a voluntary basis, in managing the full 
                range of financial risks associated with flooding by 
                requesting proposals to assume a portion of the 
                insurance risk of the National Flood Insurance Program;
                    (B) describes any responses to the request for 
                proposals under subparagraph (A);
                    (C) assesses whether the rates and terms contained 
                in any proposals received by the Administrator are--
                          (i) reasonable and appropriate; and
                          (ii) in an amount sufficient to maintain the 
                      ability of the National Flood Insurance Program to 
                      pay claims;
                    (D) describes the extent to which carrying out the 
                proposals received by the Administrator would minimize 
                the likelihood that the Administrator would use the 
                borrowing authority under section 1309 of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4016);
                    (E) describes fluctuations in historical reinsurance 
                rates; and

[[Page 126 STAT. 954]]

                    (F) includes an economic cost-benefit analysis of 
                the impact on the National Flood Insurance Program if 
                the Administrator were to exercise the authority under 
                section 1335(a)(2) of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4055(a)(2)), as added by this 
                section, to secure reinsurance of coverage provided by 
                the National Flood Insurance Program from the private 
                market.
            (2) Protocol for release of data.--The Administrator shall 
        develop a protocol, including adequate privacy protections, to 
        provide for the release of data sufficient to conduct the 
        assessment required under paragraph (1).

    (d) Reinsurance.--The National Flood Insurance Act of 1968 (42 
U.S.C. 4001 et seq.) is amended--
            (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
        inserting ``, including as reinsurance of coverage provided by 
        the flood insurance program'' before ``, on such terms'';
            (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
        inserting ``or reinsurance'' after ``flood insurance coverage'';
            (3) in section 1335(a) (42 U.S.C. 4055(a))--
                    (A) by striking ``The Director'' and inserting the 
                following:
            ``(1) In general.--The Administrator''; and
                    (B) by adding at the end the following:
            ``(2) Private reinsurance.--The Administrator is authorized 
        to secure reinsurance of coverage provided by the flood 
        insurance program from the private market at rates and on terms 
        determined by the Administrator to be reasonable and 
        appropriate, in an amount sufficient to maintain the ability of 
        the program to pay claims.'';
            (4) in section 1346(a) (42 U.S.C. 4082(a))--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``for the purpose of'' the following: 
                ``securing reinsurance of insurance coverage provided by 
                the program or for the purpose of'';
                    (B) in paragraph (1)--
                          (i) by striking ``estimating'' and inserting 
                      ``Estimating''; and
                          (ii) by striking the semicolon at the end and 
                      inserting a period;
                    (C) in paragraph (2)--
                          (i) by striking ``receiving'' and inserting 
                      ``Receiving''; and
                          (ii) by striking the semicolon at the end and 
                      inserting a period;
                    (D) in paragraph (3)--
                          (i) by striking ``making'' and inserting 
                      ``Making''; and
                          (ii) by striking `` `; and' '' and inserting a 
                      period;
                    (E) by redesignating paragraph (4) as paragraph (5);
                    (F) in paragraph (5), as so redesignated, by 
                striking ``otherwise'' and inserting ``Otherwise''; and
                    (G) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Placing reinsurance coverage on insurance provided by 
        such program.''; and
            (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
        striking ``include any'' and all that follows and inserting the 
        following:

[[Page 126 STAT. 955]]

        ``include any organization or person that is authorized to 
        engage in the business of insurance under the laws of any State, 
        subject to the reporting requirements of the Securities Exchange 
        Act of 1934 pursuant to section 13(a) or 15(d) of such Act (15 
        U.S.C. 78m(a) and 78o(d)), or authorized by the Administrator to 
        assume reinsurance on risks insured by the flood insurance 
        program;''.

    (e) <<NOTE: Deadlines. 42 USC 4027b.>>  Assessment of Claims-paying 
Ability.--
            (1) Assessment.--
                    (A) Assessment required.--
                          (i) In general.--Not later than September 30 
                      of each year, the Administrator shall conduct an 
                      assessment of the ability of the National Flood 
                      Insurance Program to pay claims.
                          (ii) Private market reinsurance.--The 
                      assessment under this paragraph for any year in 
                      which the Administrator exercises the authority 
                      under section 1335(a)(2) of the National Flood 
                      Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as 
                      added by this section, to secure reinsurance of 
                      coverage provided by the National Flood Insurance 
                      Program from the private market shall include 
                      information relating the use of private sector 
                      reinsurance and reinsurance equivalents by the 
                      Administrator, whether or not the Administrator 
                      used the borrowing authority under section 1309 of 
                      the National Flood Insurance Act of 1968 (42 
                      U.S.C. 4016).
                          (iii) First assessment.--The Administrator 
                      shall conduct the first assessment required under 
                      this paragraph not later than September 30, 2012.
                    (B) Considerations.--In conducting an assessment 
                under subparagraph (A), the Administrator shall take 
                into consideration regional concentrations of coverage 
                written by the National Flood Insurance Program, peak 
                flood zones, and relevant mitigation measures.
            (2) Annual report of the administrator of activities under 
        the national flood insurance program.--The Administrator shall--
                    (A) include the results of each assessment in the 
                report required under section 100231(b); and
                    (B) <<NOTE: Public information.>>  not later than 30 
                days after the date on which the Administrator completes 
                an assessment required under paragraph (1), make the 
                results of the assessment available to the public.
SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL 
                              LIVING EXPENSES COVERAGES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study concerning--
            (1) the availability of additional living expenses and 
        business interruption coverage in the private marketplace for 
        flood insurance;
            (2) the feasibility of allowing the National Flood Insurance 
        Program to offer such coverage at the option of the consumer;
            (3) the estimated cost to consumers if the National Flood 
        Insurance Program priced such optional coverage at true 
        actuarial rates;

[[Page 126 STAT. 956]]

            (4) the impact such optional coverage would have on consumer 
        participation in the National Flood Insurance Program; and
            (5) the fiscal impact such optional coverage would have upon 
        the National Flood Insurance Fund if such optional coverage were 
        included in the National Flood Insurance Program, as described 
        in paragraph (2), at the price described in paragraph (3).

    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report containing 
the results of the study under subsection (a).
SEC. <<NOTE: 42 USC 4013a.>> 100234. POLICY DISCLOSURES.

    (a) In General.--Notwithstanding any other provision of law, in 
addition to any other disclosures that may be required, each policy 
under the National Flood Insurance Program shall state all conditions, 
exclusions, and other limitations pertaining to coverage under the 
subject policy, regardless of the underlying insurance product, in plain 
English, in boldface type, and in a font size that is twice the size of 
the text of the body of the policy.
    (b) Violations.--The Administrator may impose a civil penalty of not 
more than $50,000 on any person that fails to comply with subsection 
(a).
SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
                              MANAGEMENT CRITERIA.

    Not later than <<NOTE: Determination.>> 6 months after the date of 
enactment of this Act, the Administrator of the Federal Emergency 
Management Agency shall conduct a study and submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
regarding the impact, effectiveness, and feasibility of amending section 
1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to 
include widely used and nationally recognized building codes as part of 
the floodplain management criteria developed under such section, and 
shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities to 
        administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement in 
        reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction;
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building codes or any applicable 
        local building codes provides greater protection from flood 
        damage;

[[Page 126 STAT. 957]]

            (7) the impact of such a building code requirement on rural 
        communities with different building code challenges than urban 
        communities; and
            (8) the impact of such a building code requirement on Indian 
        reservations.
SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CERTAIN 
                              POLICYHOLDERS.

    (a) FEMA Study.--The Administrator shall conduct a study of--
            (1) methods to encourage and maintain participation in the 
        National Flood Insurance Program;
            (2) methods to educate consumers about the National Flood 
        Insurance Program and the flood risk associated with their 
        property;
            (3) methods for establishing an affordability framework for 
        the National Flood Insurance Program, including methods to aid 
        individuals to afford risk-based premiums under the National 
        Flood Insurance Program through targeted assistance rather than 
        generally subsidized rates, including means-tested vouchers; and
            (4) the implications for the National Flood Insurance 
        Program and the Federal budget of using each such method.

    (b) <<NOTE: Contracts.>>  National Academy of Sciences Economic 
Analysis.--To inform the Administrator in the conduct of the study under 
subsection (a), the Administrator shall enter into a contract under 
which the National Academy of Sciences, in consultation with the 
Comptroller General of the United States, shall conduct and submit to 
the Administrator an economic analysis of the costs and benefits to the 
Federal Government of a flood insurance program with full risk-based 
premiums, combined with means-tested Federal assistance to aid 
individuals who cannot afford coverage, through an insurance voucher 
program. The analysis shall compare the costs of a program of risk-based 
rates and means-tested assistance to the current system of subsidized 
flood insurance rates and federally funded disaster relief for people 
without coverage.

    (c) Report.--Not later than 270 days after the date of enactment of 
this Act, the Administrator shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report that contains the 
results of the study and analysis under this section.
    (d) Funding.--Notwithstanding section 1310 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017), there shall be available to the 
Administrator from the National Flood Insurance Fund, of amounts not 
otherwise obligated, not more than $750,000 to carry out this section.
SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION OF 
                              INDIAN TRIBES AND MEMBERS OF INDIAN 
                              TRIBES IN THE NATIONAL FLOOD 
                              INSURANCE PROGRAM.

    (a) Definition.--In this section, the term ``Indian tribe'' has the 
meaning given that term in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b).
    (b) Findings.--Congress finds that participation by Indian tribes in 
the National Flood Insurance Program is low. Only 45 of 565 Indian 
tribes participate in the National Flood Insurance Program.

[[Page 126 STAT. 958]]

    (c) Study.--The Comptroller General of the United States, in 
coordination and consultation with Indian tribes and members of Indian 
tribes throughout the United States, shall carry out a study that 
examines--
            (1) the factors contributing to the current rates of 
        participation by Indian tribes and members of Indian tribes in 
        the National Flood Insurance Program; and
            (2) methods of encouraging participation by Indian tribes 
        and members of Indian tribes in the National Flood Insurance 
        Program.

    (d) Report.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General shall submit to Congress a report 
that--
            (1) contains the results of the study carried out under 
        subsection (c);
            (2) describes the steps that the Administrator should take 
        to increase awareness and encourage participation by Indian 
        tribes and members of Indian tribes in the National Flood 
        Insurance Program; and
            (3) identifies any legislative changes that would encourage 
        participation by Indian tribes and members of Indian tribes in 
        the National Flood Insurance Program.
SEC. 100238. TECHNICAL CORRECTIONS.

    (a) Flood Disaster Protection Act of 1973.--The Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended--
            (1) <<NOTE: 42 USC 40033et seq.>>  by striking ``Director'' 
        each place that term appears, except in section 102(f)(3) (42 
        U.S.C. 4012a(f)(3)), and inserting ``Administrator''; and
            (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
        ``Director's'' and inserting ``Administrator's''.

    (b) National Flood Insurance Act of 1968.--The National Flood 
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
            (1) <<NOTE: 42 USC 40113et seq.>>  by striking ``Director'' 
        each place that term appears and inserting ``Administrator'';
            (2) in section 1363 (42 U.S.C. 4104), by striking 
        ``Director's'' each place that term appears and inserting 
        ``Administrator's''; and
            (3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), by 
        striking ``the Office of Thrift Supervision,''.

    (c) Federal Flood Insurance Act of 1956.--Section 15(e) of the 
Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended by 
striking ``Director'' each place that term appears and inserting 
``Administrator''.
SEC. 100239. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY 
                              PURCHASE REQUIREMENT.

    (a) Amendments.--Section 102(b) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking the period at the end and inserting 
                ``; and'';
                    (B) by striking ``lending institutions not to make'' 
                and inserting ``lending institutions--
                    ``(A) not to make''; and
                    (C) by adding at the end the following:

[[Page 126 STAT. 959]]

                    ``(B) to accept private flood insurance as 
                satisfaction of the flood insurance coverage requirement 
                under subparagraph (A) if the coverage provided by such 
                private flood insurance meets the requirements for 
                coverage under such subparagraph.'';
            (2) in paragraph (2)--
                    (A) by striking ``paragraph (1)'' each place that 
                term appears and inserting ``paragraph (1)(A)''; and
                    (B) by inserting after the first sentence the 
                following: ``Each Federal agency lender shall accept 
                private flood insurance as satisfaction of the flood 
                insurance coverage requirement under the preceding 
                sentence if the flood insurance coverage provided by 
                such private flood insurance meets the requirements for 
                coverage under such sentence.'';
            (3) in paragraph (3), in the matter following subparagraph 
        (B), by striking ``paragraph (1).'' and inserting ``paragraph 
        (1)(A). The Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation shall accept private 
        flood insurance as satisfaction of the flood insurance coverage 
        requirement under paragraph (1)(A) if the flood insurance 
        coverage provided by such private flood insurance meets the 
        requirements for coverage under such paragraph and any 
        requirements established by the Federal National Mortgage 
        Association or the Federal Home Loan Mortgage Corporation, 
        respectively, relating to the financial solvency, strength, or 
        claims-paying ability of private insurance companies from which 
        the Federal National Mortgage Association or the Federal Home 
        Loan Mortgage Corporation will accept private flood 
        insurance.''; and
            (4) by adding at the end the following:
            ``(5) Rule of construction.--Nothing in this subsection 
        shall be construed to supersede or limit the authority of a 
        Federal entity for lending regulation, the Federal Housing 
        Finance Agency, a Federal agency lender, the Federal National 
        Mortgage Association, or the Federal Home Loan Mortgage 
        Corporation to establish requirements relating to the financial 
        solvency, strength, or claims-paying ability of private 
        insurance companies from which the entity or agency will accept 
        private flood insurance.
            ``(6) Notice.--
                    ``(A) In general.--Each lender shall disclose to a 
                borrower that is subject to this subsection that--
                          ``(i) flood insurance is available from 
                      private insurance companies that issue standard 
                      flood insurance policies on behalf of the national 
                      flood insurance program or directly from the 
                      national flood insurance program;
                          ``(ii) flood insurance that provides the same 
                      level of coverage as a standard flood insurance 
                      policy under the national flood insurance program 
                      may be available from a private insurance company 
                      that issues policies on behalf of the company; and
                          ``(iii) the borrower is encouraged to compare 
                      the flood insurance coverage, deductibles, 
                      exclusions, conditions and premiums associated 
                      with flood insurance policies issued on behalf of 
                      the national flood insurance

[[Page 126 STAT. 960]]

                      program and policies issued on behalf of private 
                      insurance companies and to direct inquiries 
                      regarding the availability, cost, and comparisons 
                      of flood insurance coverage to an insurance agent.
                    ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed as affecting or otherwise 
                limiting the authority of a Federal entity for lending 
                regulation to approve any disclosure made by a regulated 
                lending institution for purposes of complying with 
                subparagraph (A).
            ``(7) Private flood insurance defined.--In this subsection, 
        the term `private flood insurance' means an insurance policy 
        that--
                    ``(A) is issued by an insurance company that is--
                          ``(i) licensed, admitted, or otherwise 
                      approved to engage in the business of insurance in 
                      the State or jurisdiction in which the insured 
                      building is located, by the insurance regulator of 
                      that State or jurisdiction; or
                          ``(ii) in the case of a policy of difference 
                      in conditions, multiple peril, all risk, or other 
                      blanket coverage insuring nonresidential 
                      commercial property, is recognized, or not 
                      disapproved, as a surplus lines insurer by the 
                      insurance regulator of the State or jurisdiction 
                      where the property to be insured is located;
                    ``(B) provides flood insurance coverage which is at 
                least as broad as the coverage provided under a standard 
                flood insurance policy under the national flood 
                insurance program, including when considering 
                deductibles, exclusions, and conditions offered by the 
                insurer;
                    ``(C) includes--
                          ``(i) a requirement for the insurer to give 45 
                      days' written notice of cancellation or non-
                      renewal of flood insurance coverage to--
                                    ``(I) the insured; and
                                    ``(II) the regulated lending 
                                institution or Federal agency lender;
                          ``(ii) information about the availability of 
                      flood insurance coverage under the national flood 
                      insurance program;
                          ``(iii) a mortgage interest clause similar to 
                      the clause contained in a standard flood insurance 
                      policy under the national flood insurance program; 
                      and
                          ``(iv) <<NOTE: Deadline.>>  a provision 
                      requiring an insured to file suit not later than 1 
                      year after date of a written denial of all or part 
                      of a claim under the policy; and
                    ``(D) contains cancellation provisions that are as 
                restrictive as the provisions contained in a standard 
                flood insurance policy under the national flood 
                insurance program.''.

    (b) Technical and Conforming Amendment.--Section 1364(a)(3)(C) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104a(a)(3)(C)) is 
amended by inserting after ``private insurers'' the following: ``, as 
required under section 102(b)(6) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(b)(6))''.

[[Page 126 STAT. 961]]

SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES.

    (a) Definition.--In this section, the term ``covered hazard 
mitigation land'' means land that--
            (1) was acquired and deed restricted under section 1366 of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
        during the period beginning on January 1, 1999, and ending 
        December 31, 2011;
            (2) is located at--
                    (A) 1029 Oak Street, Fargo, North Dakota;
                    (B) 27 South Terrace, Fargo, North Dakota;
                    (C) 1033 Oak Street, Fargo, North Dakota;
                    (D) 308 Schnell Drive, Oxbow, North Dakota; or
                    (E) 306 Schnell Drive, Oxbow, North Dakota; and
            (3) is located in a community that--
                    (A) is participating in the National Flood Insurance 
                Program on the date on which a State, local, or tribal 
                government submits an application requesting to 
                construct a permanent flood risk reduction levee under 
                subsection (b); and
                    (B) <<NOTE: Certification.>>  certifies to the 
                Administrator and the Chief of Engineers that the 
                community will continue to participate in the National 
                Flood Insurance Program.

    (b) Authority.--Notwithstanding any other prohibition on 
construction on property acquired with funding from the Federal 
Emergency Management Agency for conversion to open space purposes, the 
Administrator shall allow the construction of a permanent flood risk 
reduction levee by a State, local, or tribal government on covered 
hazard mitigation land if--
            (1) <<NOTE: Determination.>>  the Administrator and the 
        Chief of Engineers make a determination that--
                    (A) construction of the proposed permanent flood 
                risk reduction levee would more effectively mitigate 
                against flooding risk than an open floodplain or other 
                flood risk reduction measures;
                    (B) the proposed permanent flood risk reduction 
                levee complies with Federal, State, and local 
                requirements, including mitigation of adverse impacts 
                and implementation of floodplain management 
                requirements, which shall include an evaluation of 
                whether the construction, operation, and maintenance of 
                the proposed levee--
                          (i) would continue to meet best available 
                      industry standards and practices;
                          (ii) would be the most cost-effective measure 
                      to protect against the assessed flood risk; and
                          (iii) minimizes future costs to the Federal 
                      Government;
                    (C) the State, local, or tribal government seeking 
                to construct the proposed permanent flood risk reduction 
                levee has provided an adequate maintenance plan that 
                documents the procedures the State, local, or tribal 
                government will use to ensure that the stability, 
                height, and overall integrity of the proposed levee and 
                the structure and systems of the proposed levee are 
                maintained, including--
                          (i) specifying the maintenance activities to 
                      be performed;
                          (ii) specifying the frequency with which 
                      maintenance activities will be performed;

[[Page 126 STAT. 962]]

                          (iii) specifying the person responsible for 
                      performing each maintenance activity (by name or 
                      title);
                          (iv) detailing the plan for financing the 
                      maintenance of the levee; and
                          (v) documenting the ability of the State, 
                      local, or tribal government to finance the 
                      maintenance of the levee; and
            (2) before the commencement of construction, the State, 
        local, or tribal government provides to the Administrator an 
        amount--
                    (A) equal to the Federal share of all project costs 
                previously provided by the Administrator under the 
                applicable program for each deed restricted parcel of 
                the covered hazard mitigation land, which the 
                Administrator shall deposit in the National Flood 
                Insurance Fund; and
                    (B) that does not include any Federal funds.

    (c) Maintenance Certification.--
            (1) In general.--A State, local, or tribal government that 
        constructs a permanent flood risk reduction levee under 
        subsection (b) shall submit to the Administrator and the Chief 
        of Engineers an annual certification indicating whether the 
        State, local, or tribal government is in compliance with the 
        maintenance plan provided under subsection (b)(1)(C).
            (2) <<NOTE: Determination.>>  Review.--The Chief of 
        Engineers shall review each certification submitted under 
        paragraph (1) and determine whether the State, local, or tribal 
        government has complied with the maintenance plan.
SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES AFFECTED BY 
                              FLOODING FROM FEDERAL LANDS.

    Section 1306(c)(2) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4013(c)(2)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) the initial purchase of flood insurance 
                coverage for private property if--
                          ``(i) <<NOTE: Determination.>>  the 
                      Administrator determines that the property is 
                      affected by flooding on Federal land that is a 
                      result of, or is exacerbated by, post-wildfire 
                      conditions, after consultation with an authorized 
                      employee of the Federal agency that has 
                      jurisdiction of the land on which the wildfire 
                      that caused the post-wildfire conditions occurred; 
                      and
                          ``(ii) <<NOTE: Deadline.>>  the flood 
                      insurance coverage was purchased not later than 60 
                      days after the fire containment date, as 
                      determined by the appropriate Federal employee, 
                      relating to the wildfire that caused the post-
                      wildfire conditions described in clause (i).''.
SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSURANCE 
                              PLAN.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following:

[[Page 126 STAT. 963]]

``SEC. <<NOTE: 42 USC 4032.>> 1325. TREATMENT OF SWIMMING POOL 
                          ENCLOSURES OUTSIDE OF HURRICANE SEASON.

    ``(a) <<NOTE: Time period.>>  In General.--Notwithstanding any other 
provision of law, including the adequate land use and control measures 
developed pursuant to section 1361 and applicable to non-one- and two-
family structures located within coastal areas, as identified by the 
Administrator, the following may be permitted:
            ``(1) Nonsupporting breakaway walls in the space below the 
        lowest elevated floor of a building, if the space is used solely 
        for a swimming pool between November 30 and June 1 of any year, 
        in an area designated as Zone V on a flood insurance rate map.
            ``(2) Openings in walls in the space below the lowest 
        elevated floor of a building, if the space is used solely for a 
        swimming pool between November 30 and June 1 of any year, in an 
        area designated as Zone A on a flood insurance rate map.

    ``(b) Rule of Construction.--Nothing in subsection (a) shall be 
construed to alter the terms and conditions of eligibility and 
insurability of coverage for a building under the standard flood 
insurance policy under the national flood insurance program.''.
SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH 
                              ACTIVITIES AND COMMUNITY BUILDING 
                              CODE ADMINISTRATION GRANTS.

    (a) Amendments.--Section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
            (1) by redesignating paragraph (25) as paragraph (26);
            (2) by redesignating the second paragraph designated as 
        paragraph (24) (relating to tornado-safe shelters) as paragraph 
        (25);
            (3) in paragraph (24) (relating to homeownership among 
        persons with low and moderate income), by striking ``and'' at 
        the end;
            (4) in paragraph (25), as so redesignated, by striking 
        ``and'' at the end;
            (5) in paragraph (26), as so redesignated, by striking the 
        period at the end and inserting a semicolon; and
            (6) by adding at the end the following new paragraphs:
            ``(27) supplementing existing State or local funding for 
        administration of building code enforcement by local building 
        code enforcement departments, including for increasing staffing, 
        providing staff training, increasing staff competence and 
        professional qualifications, and supporting individual 
        certification or departmental accreditation, and for capital 
        expenditures specifically dedicated to the administration of the 
        building code enforcement department, except that, to be 
        eligible to use amounts as provided in this paragraph--
                    ``(A) <<NOTE: Waiver authority.>>  a building code 
                enforcement department shall provide matching, non-
                Federal funds to be used in conjunction with amounts 
                used under this paragraph in an amount--
                          ``(i) in the case of a building code 
                      enforcement department serving an area with a 
                      population of more than 50,000, equal to not less 
                      than 50 percent of the total amount of any funds 
                      made available under this title that are used 
                      under this paragraph;

[[Page 126 STAT. 964]]

                          ``(ii) in the case of a building code 
                      enforcement department serving an area with a 
                      population of between 20,001 and 50,000, equal to 
                      not less than 25 percent of the total amount of 
                      any funds made available under this title that are 
                      used under this paragraph; and
                          ``(iii) in the case of a building code 
                      enforcement department serving an area with a 
                      population of less than 20,000, equal to not less 
                      than 12.5 percent of the total amount of any funds 
                      made available under this title that are used 
                      under this paragraph,
                except that the Secretary may waive the matching fund 
                requirements under this subparagraph, in whole or in 
                part, based upon the level of economic distress of the 
                jurisdiction in which is located the local building code 
                enforcement department that is using amounts for 
                purposes under this paragraph, and shall waive such 
                matching fund requirements in whole for any recipient 
                jurisdiction that has dedicated all building code 
                permitting fees to the conduct of local building code 
                enforcement; and
                    ``(B) any building code enforcement department using 
                funds made available under this title for purposes under 
                this paragraph shall empanel a code administration and 
                enforcement team consisting of at least 1 full-time 
                building code enforcement officer, a city planner, and a 
                health planner or similar officer; and
            ``(28) provision of assistance to local governmental 
        agencies responsible for floodplain management activities 
        (including such agencies of Indians tribes, as such term is 
        defined in section 4 of the Native American Housing Assistance 
        and Self-Determination Act of 1996 (25 U.S.C. 4103)) in 
        communities that participate in the national flood insurance 
        program under the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.), only for carrying out outreach activities 
        to encourage and facilitate the purchase of flood insurance 
        protection under such Act by owners and renters of properties in 
        such communities and to promote educational activities that 
        increase awareness of flood risk reduction; except that--
                    ``(A) amounts used as provided under this paragraph 
                shall be used only for activities designed to--
                          ``(i) identify owners and renters of 
                      properties in communities that participate in the 
                      national flood insurance program, including owners 
                      of residential and commercial properties;
                          ``(ii) <<NOTE: Notification.>>  notify such 
                      owners and renters when their properties become 
                      included in, or when they are excluded from, an 
                      area having special flood hazards and the effect 
                      of such inclusion or exclusion on the 
                      applicability of the mandatory flood insurance 
                      purchase requirement under section 102 of the 
                      Flood Disaster Protection Act of 1973 (42 U.S.C. 
                      4012a) to such properties;
                          ``(iii) educate such owners and renters 
                      regarding the flood risk and reduction of this 
                      risk in their community, including the continued 
                      flood risks to areas that are no longer subject to 
                      the flood insurance mandatory purchase 
                      requirement;

[[Page 126 STAT. 965]]

                          ``(iv) educate such owners and renters 
                      regarding the benefits and costs of maintaining or 
                      acquiring flood insurance, including, where 
                      applicable, lower-cost preferred risk policies 
                      under this title for such properties and the 
                      contents of such properties;
                          ``(v) encourage such owners and renters to 
                      maintain or acquire such coverage;
                          ``(vi) <<NOTE: Notification.>>  notify such 
                      owners of where to obtain information regarding 
                      how to obtain such coverage, including a telephone 
                      number, mailing address, and Internet site of the 
                      Administrator of the Federal Emergency Management 
                      Agency (in this paragraph referred to as the 
                      `Administrator') where such information is 
                      available; and
                          ``(vii) educate local real estate agents in 
                      communities participating in the national flood 
                      insurance program regarding the program and the 
                      availability of coverage under the program for 
                      owners and renters of properties in such 
                      communities, and establish coordination and 
                      liaisons with such real estate agents to 
                      facilitate purchase of coverage under the National 
                      Flood Insurance Act of 1968 and increase awareness 
                      of flood risk reduction;
                    ``(B) in any fiscal year, a local governmental 
                agency may not use an amount under this paragraph that 
                exceeds 3 times the amount that the agency certifies, as 
                the Secretary, in consultation with the Administrator, 
                shall require, that the agency will contribute from non-
                Federal funds to be used with such amounts used under 
                this paragraph only for carrying out activities 
                described in subparagraph (A); and for purposes of this 
                subparagraph, the term `non-Federal funds' includes 
                State or local government agency amounts, in-kind 
                contributions, any salary paid to staff to carry out the 
                eligible activities of the local governmental agency 
                involved, the value of the time and services contributed 
                by volunteers to carry out such services (at a rate 
                determined by the Secretary), and the value of any 
                donated material or building and the value of any lease 
                on a building;
                    ``(C) a local governmental agency that uses amounts 
                as provided under this paragraph may coordinate or 
                contract with other agencies and entities having 
                particular capacities, specialties, or experience with 
                respect to certain populations or constituencies, 
                including elderly or disabled families or persons, to 
                carry out activities described in subparagraph (A) with 
                respect to such populations or constituencies; and
                    ``(D) <<NOTE: Reports. Deadline.>>  each local 
                government agency that uses amounts as provided under 
                this paragraph shall submit a report to the Secretary 
                and the Administrator, not later than 12 months after 
                such amounts are first received, which shall include 
                such information as the Secretary and the Administrator 
                jointly consider appropriate to describe the activities 
                conducted using such amounts and the effect of such 
                activities on the retention or acquisition of flood 
                insurance coverage.''.

[[Page 126 STAT. 966]]

    (b) Sunset.--Effective on the date that is 2 years after the date of 
enactment of this Act, section 105(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (25), as so redesignated by subsection (a) 
        of this subsection, by adding ``and'' at the end;
            (2) in paragraph (26), as so redesignated by subsection (a) 
        of this subsection, by striking the semicolon at the end and 
        inserting a period; and
            (3) by striking paragraphs (27) and (28), as added by 
        subsection (a) of this subsection.
SEC. 100244. TERMINATION OF FORCE-PLACED INSURANCE.

    (a) In General.--Section 102(e) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(e)) is amended--
            (1) in paragraph (2), by striking ``purchasing the 
        insurance'' and inserting ``purchasing the insurance, including 
        premiums or fees incurred for coverage beginning on the date on 
        which flood insurance coverage lapsed or did not provide a 
        sufficient coverage amount'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraphs:
            ``(3) Termination of force-placed insurance.--Within 30 days 
        of receipt by the lender or servicer of a confirmation of a 
        borrower's existing flood insurance coverage, the lender or 
        servicer shall--
                    ``(A) terminate any insurance purchased by the 
                lender or servicer under paragraph (2); and
                    ``(B) refund to the borrower all premiums paid by 
                the borrower for any insurance purchased by the lender 
                or servicer under paragraph (2) during any period during 
                which the borrower's flood insurance coverage and the 
                insurance coverage purchased by the lender or servicer 
                were each in effect, and any related fees charged to the 
                borrower with respect to the insurance purchased by the 
                lender or servicer during such period.
            ``(4) Sufficiency of demonstration.--For purposes of 
        confirming a borrower's existing flood insurance coverage, a 
        lender or servicer for a loan shall accept from the borrower an 
        insurance policy declarations page that includes the existing 
        flood insurance policy number and the identity of, and contact 
        information for, the insurance company or agent.''.
SEC. 100245. FEMA AUTHORITY ON TRANSFER OF POLICIES.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(d) FEMA Authority on Transfer of Policies.--Notwithstanding any 
other provision of this title, the Administrator may, at the discretion 
of the Administrator, refuse to accept the transfer of the 
administration of policies for coverage under the flood insurance 
program under this title that are written and administered by any 
insurance company or other insurer, or any insurance agent or broker.''.

[[Page 126 STAT. 967]]

SEC. 100246. REIMBURSEMENT OF CERTAIN EXPENSES.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended by striking subsection (f) and inserting the following:
    ``(f) Reimbursement of Certain Expenses.--When, incident to any 
appeal under subsection (b) or (c) of this section, the owner or lessee 
of real property or the community, as the case may be, incurs expense in 
connection with the services of surveyors, engineers, or similar 
services, but not including legal services, in the effecting of an 
appeal based on a scientific or technical error on the part of the 
Federal Emergency Management Agency, which is successful in whole or 
part, the Administrator shall reimburse such individual or community to 
an extent measured by the ratio of the successful portion of the appeal 
as compared to the entire appeal and applying such ratio to the 
reasonable value of all such services, but no reimbursement shall be 
made by the Administrator in respect to any fee or expense payment, the 
payment of which was agreed to be contingent upon the result of the 
appeal. The amounts available for implementing this subsection shall not 
exceed $250,000. <<NOTE: Regulations.>> The Administrator shall 
promulgate regulations to carry out this subsection.''.
SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE.

    (a) <<NOTE: Deadline. Reports.>>  In General.--Not later than 1 year 
after the date of enactment of this Act, the Director of the Federal 
Insurance Office shall conduct a study and submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report providing an 
assessment of the current state of the market for natural catastrophe 
insurance in the United States.

    (b) Factors.--The study and report required under subsection (a) 
shall assess--
            (1) the current condition of, as well as the outlook for, 
        the availability and affordability of insurance for natural 
        catastrophe perils in all regions of the United States;
            (2) the current ability of States, communities, and 
        individuals to mitigate their natural catastrophe risks, 
        including the affordability and feasibility of such mitigation 
        activities;
            (3) the current state of catastrophic insurance and 
        reinsurance markets and the current approaches in providing 
        insurance protection to different sectors of the population of 
        the United States;
            (4) the current financial condition of State residual 
        markets and catastrophe funds in high-risk regions, including 
        the likelihood of insolvency following a natural catastrophe, 
        the concentration of risks within such funds, the reliance on 
        post-event assessments and State funding, and the adequacy of 
        rates; and
            (5) the current role of the Federal Government and State and 
        local governments in providing incentives for feasible risk 
        mitigation efforts and the cost of providing post-natural 
        catastrophe aid in the absence of insurance.

    (c) Additional Factors.--The study and report required under 
subsection (a) shall also contain an assessment of current approaches to 
insuring natural catastrophe risks in the United States and such other 
information as the Director of the Federal Insurance Office determines 
necessary or appropriate.

[[Page 126 STAT. 968]]

    (d) Consultation.--In carrying out the study and report under 
subsection (a), the Director of the Federal Insurance Office shall 
consult with the National Academy of Sciences, State insurance 
regulators, consumer organizations, representatives of the insurance and 
reinsurance industry, policyholders, and other organizations and 
experts, as appropriate.
SEC. 100248. FLOOD PROTECTION IMPROVEMENTS CONSTRUCTED ON CERTAIN 
                              PROPERTIES.

    (a) Definition.--In this section, the term ``covered hazard 
mitigation land'' means land that--
            (1) was acquired and deed restricted under section 1366 of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
        during the period beginning on March 1, 2008, and ending on 
        December 31, 2008;
            (2) is located at--
                    (A) 809 East Main Cross Street, Findlay, Ohio, 
                45840;
                    (B) 801 East Main Cross Street, Findlay, Ohio, 
                45840;
                    (C) 725 East Main Cross Street, Findlay, Ohio, 
                45840; or
                    (D) 631 East Main Cross Street, Findlay, Ohio, 
                45840; and
            (3) is located in a community that--
                    (A) is participating in the National Flood Insurance 
                Program on the date on which a State, local, or tribal 
                government submits an application requesting to 
                construct a flood protection improvement under 
                subsection (b); and
                    (B) <<NOTE: Certification.>>  certifies to the 
                Administrator and the Chief of Engineers that the 
                community will continue to participate in the National 
                Flood Insurance Program.

    (b) Authority.--Notwithstanding any other prohibition on 
construction on property acquired with funding from the Federal 
Emergency Management Agency for conversion to open space purposes, the 
Administrator shall allow the construction of a flood protection 
improvement by a State, local, or tribal government on covered hazard 
mitigation land if--
            (1) <<NOTE: Determination.>>  the Administrator and the 
        Chief of Engineers make a determination that--
                    (A) construction of the proposed flood protection 
                improvement would more effectively mitigate against 
                flooding risk than an open floodplain or other flood 
                risk reduction measures;
                    (B) the proposed flood protection improvement 
                complies with Federal, State, and local requirements, 
                including mitigation of adverse impacts and 
                implementation of floodplain management requirements, 
                which shall include an evaluation of whether the 
                construction, operation, and maintenance of the proposed 
                flood protection improvement--
                          (i) would continue to meet best available 
                      industry standards and practices;
                          (ii) would be the most cost-effective measure 
                      to protect against the assessed flood risk; and
                          (iii) minimizes future costs to the Federal 
                      Government;
                    (C) the State, local, or tribal government seeking 
                to construct the flood protection improvement has 
                provided

[[Page 126 STAT. 969]]

                an adequate maintenance plan that documents the 
                procedures the State, local, or tribal government will 
                use to ensure that the stability, height, and overall 
                integrity of the proposed flood protection improvement 
                and the structure and systems of the proposed flood 
                protection improvement are maintained, including--
                          (i) specifying the maintenance activities to 
                      be performed;
                          (ii) specifying the frequency with which 
                      maintenance activities will be performed;
                          (iii) specifying the person responsible for 
                      performing each maintenance activity (by name or 
                      title);
                          (iv) detailing the plan for financing the 
                      maintenance of the flood protection improvement; 
                      and
                          (v) documenting the ability of the State, 
                      local, or tribal government to finance the 
                      maintenance of the flood protection improvement; 
                      and
            (2) before the commencement of construction, the State, 
        local, or tribal government provides to the Administrator an 
        amount--
                    (A) equal to the Federal share of all project costs 
                previously provided by the Administrator under the 
                applicable program for each deed restricted parcel of 
                the covered hazard mitigation land, which the 
                Administrator shall deposit in the National Flood 
                Insurance Fund; and
                    (B) that does not include any Federal funds.

    (c) Maintenance Certification.--
            (1) In general.--A State, local, or tribal government that 
        constructs a flood protection improvement under subsection (b) 
        shall submit to the Administrator and the Chief of Engineers an 
        annual certification indicating whether the State, local, or 
        tribal government is in compliance with the maintenance plan 
        provided under subsection (b)(1)(C).
            (2) <<NOTE: Determination.>>  Review.--The Chief of 
        Engineers shall review each certification submitted under 
        paragraph (1) and determine whether the State, local, or tribal 
        government has complied with the maintenance plan.
SEC. 100249. <<NOTE: 42 USC 4130.>> NO CAUSE OF ACTION.

    No cause of action shall exist and no claim may be brought against 
the United States for violation of any notification requirement imposed 
upon the United States by this subtitle or any amendment made by this 
subtitle.

 Subtitle <<NOTE: Consumer Option for an Alternative System to Allocate 
Losses Act of 2012. 42 USC 4001 note.>> B--Alternative Loss Allocation
SEC. 100251. SHORT TITLE.

    This subtitle may be cited as the ``Consumer Option for an 
Alternative System to Allocate Losses Act of 2012'' or the ``COASTAL Act 
of 2012''.
SEC. 100252. ASSESSING AND MODELING NAMED STORMS OVER COASTAL 
                              STATES.

    Subtitle C of title XII of the Omnibus Public Land Management Act of 
2009 (33 U.S.C. 3601 et seq.) (also known as the ``Integrated Coastal 
and Ocean Observation System Act of 2009'') is amended by adding at the 
end the following:

[[Page 126 STAT. 970]]

``SEC. 12312. <<NOTE: 33 USC 3611.>> ASSESSING AND MODELING NAMED 
                            STORMS OVER COASTAL STATES.

    ``(a) Definitions.--In this section:
            ``(1) COASTAL formula.--The term `COASTAL Formula' has the 
        meaning given the term in section 1337(a) of the National Flood 
        Insurance Act of 1968.
            ``(2) Coastal state.--The term `coastal State' has the 
        meaning given the term `coastal state' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            ``(3) Coastal waters.--The term `coastal waters' has the 
        meaning given the term in such section.
            ``(4) Covered data.--The term `covered data' means, with 
        respect to a named storm identified by the Administrator under 
        subsection (b)(2)(A), empirical data that are--
                    ``(A) collected before, during, or after such storm; 
                and
                    ``(B) necessary to determine magnitude and timing of 
                wind speeds, rainfall, the barometric pressure, river 
                flows, the extent, height, and timing of storm surge, 
                topographic and bathymetric data, and other measures 
                required to accurately model and assess damage from such 
                storm.
            ``(5) Indeterminate loss.--The term `indeterminate loss' has 
        the meaning given the term in section 1337(a) of the National 
        Flood Insurance Act of 1968.
            ``(6) Named storm.--The term `named storm' means any 
        organized weather system with a defined surface circulation and 
        maximum winds of at least 39 miles per hour which the National 
        Hurricane Center of the United States National Weather Service 
        names as a tropical storm or a hurricane.
            ``(7) Named storm event model.--The term `Named Storm Event 
        Model' means the official meteorological and oceanographic 
        computerized model, developed by the Administrator under 
        subsection (b)(1)(A), which utilizes covered data to replicate 
        the magnitude, timing, and spatial variations of winds, 
        rainfall, and storm surges associated with named storms that 
        threaten any portion of a coastal State.
            ``(8) Participant.--The term `participant' means a Federal, 
        State, or private entity that chooses to cooperate with the 
        Administrator in carrying out the provisions of this section by 
        collecting, contributing, and maintaining covered data.
            ``(9) Post-storm assessment.--The term `post-storm 
        assessment' means a scientific assessment produced and certified 
        by the Administrator to determine the magnitude, timing, and 
        spatial variations of winds, rainfall, and storm surges 
        associated with a specific named storm to be used in the COASTAL 
        Formula.
            ``(10) State.--The term `State' means a State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and any other territory or possession of the United 
        States.

    ``(b) Named Storm Event Model and Post-storm Assessment.--
            ``(1) Establishment of named storm event model.--
                    ``(A) <<NOTE: Deadline. Regulations.>>  In 
                general.--Not later than 540 days after the date of the 
                enactment of the Consumer Option for an Alternative 
                System to Allocate Losses Act of 2012, the Administrator 
                shall develop by regulation the Named Storm Event Model.

[[Page 126 STAT. 971]]

                    ``(B) Accuracy.--The Named Storm Event Model shall 
                be designed to generate post-storm assessments, as 
                provided in paragraph (2), that have a degree of 
                accuracy of not less than 90 percent for every 
                indeterminate loss for which a post-storm assessment is 
                utilized.
            ``(2) Post-storm assessment.--
                    ``(A) Identification of named storms threatening 
                coastal states.--After the establishment of the COASTAL 
                Formula, the Administrator shall, in consultation with 
                the Secretary of Homeland Security, identify named 
                storms that may reasonably constitute a threat to any 
                portion of a coastal State.
                    ``(B) Post-storm assessment required.--Upon 
                identification of a named storm under subparagraph (A), 
                the Administrator shall develop a post-storm assessment 
                for such named storm using the Named Storm Event Model 
                and covered data collected for such named storm pursuant 
                to the protocol established under subsection (c)(1).
                    ``(C) <<NOTE: Deadline.>>  Submittal of post-storm 
                assessment.--Not later than 90 days after an 
                identification of a named storm is made under 
                subparagraph (A), the Administrator shall submit to the 
                Secretary of Homeland Security the post-storm assessment 
                developed for such storm under subparagraph (B).
            ``(3) Accuracy.--The Administrator shall ensure, to the 
        greatest extent practicable, that each post-storm assessment 
        developed under paragraph (2) has a degree of accuracy of not 
        less than 90 percent.
            ``(4) Certification.--For each post-storm assessment carried 
        out under paragraph (2), the Administrator shall--
                    ``(A) certify the degree of accuracy for such 
                assessment, including specific reference to any segments 
                or geographic areas for which the assessment is less 
                than 90 percent accurate; and
                    ``(B) <<NOTE: Reports.>>  report such certification 
                to the Secretary of Homeland Security for the purposes 
                of use with indeterminate loss claims under section 1337 
                of the National Flood Insurance Act of 1968.
            ``(5) Finality of determinations.--A certification of the 
        degree of accuracy of a post-storm assessment under this 
        subsection by the Administrator shall be final and shall not be 
        subject to judicial review.
            ``(6) <<NOTE: Public information.>>  Availability.--The 
        Administrator shall make available to the public the Named Storm 
        Event Model and any post-storm assessment developed under this 
        subsection.

    ``(c) Establishment of a Protocol for Post-storm Assessment.--
            ``(1) <<NOTE: Deadline.>>  In general.--Not later than 540 
        days after the date of the enactment of the Consumer Option for 
        an Alternative System to Allocate Losses Act of 2012, the 
        Administrator shall establish a protocol, based on the plan 
        submitted under subsection (d)(3), to collect and assemble all 
        covered data required by the Administrator to produce post-storm 
        assessments required by subsection (b), including assembling 
        data collected by participants and stored in the database 
        established under subsection (f) and from such other sources as 
        the Administrator considers appropriate.

[[Page 126 STAT. 972]]

            ``(2) Acquisition of sensors and structures.--If the 
        Administrator is unable to use a public or private asset to 
        obtain covered data as part of the protocol established under 
        paragraph (1), the Administrator may acquire such sensors and 
        structures for the placement of sensors as may be necessary to 
        obtain such data.
            ``(3) Use of federal assets.--If the protocol requires 
        placement of a sensor to develop assessments pursuant to 
        subsection (b), the Administrator shall, to the extent 
        practicable, use Federal assets for the placement of such 
        sensors.
            ``(4) Use of acquired structures.--
                    ``(A) In general.--If the Administrator acquires a 
                structure for the placement of a sensor for purposes of 
                such protocol, the Administrator shall to the extent 
                practical permit other public and private entities to 
                place sensors on such structure to collect--
                          ``(i) meteorological data;
                          ``(ii) national security-related data;
                          ``(iii) navigation-related data;
                          ``(iv) hydrographic data; or
                          ``(v) such other data as the Administrator 
                      considers appropriate.
                    ``(B) Receipt of consideration.--The Administrator 
                may receive consideration for the placement of a sensor 
                on a structure under subparagraph (A).
                    ``(C) In-kind consideration.--Consideration received 
                under subparagraph (B) may be received in-kind.
                    ``(D) Use of consideration.--To the extent 
                practicable, consideration received under subparagraph 
                (B) shall be used for the maintenance of sensors used to 
                collect covered data.
            ``(5) Coordinated deployments and data collection 
        practices.--The Administrator shall, in consultation with the 
        Office of the Federal Coordinator for Meteorology, coordinate 
        the deployment of sensors as part of the protocol established 
        under paragraph (1) and related data collection carried out by 
        Federal, State, academic, and private entities who choose to 
        cooperate with the Administrator in carrying out this 
        subsection.
            ``(6) Priority acquisition and deployment.--The 
        Administrator shall give priority in the acquisition for and 
        deployment of sensors under the protocol required by paragraph 
        (1) to areas of coastal States that have the highest risk of 
        being harmed by named storms.

    ``(d) Assessment of Systems and Efforts to Collect Covered Data.--
            ``(1) Identification of systems and efforts to collect 
        covered data.--Not later than <<NOTE: Deadline.>> 180 days after 
        the date of the enactment of the Consumer Option for an 
        Alternative System to Allocate Losses Act of 2012, the 
        Administrator shall, in consultation with the Office of the 
        Federal Coordinator for Meteorology--
                    ``(A) <<NOTE: Survey.>>  carry out a survey to 
                identify all Federal and State efforts and systems that 
                are capable of collecting covered data; and

[[Page 126 STAT. 973]]

                    ``(B) <<NOTE: Consultation.>>  consult with private 
                and academic sector entities to identify domestic 
                private and academic systems that are capable of 
                collecting covered data.
            ``(2) Identification of gaps.--The Administrator shall, in 
        consultation with the Office of the Federal Coordinator for 
        Meteorology and individuals and entities consulted under 
        subsection (e)(3), assess the systems identified under paragraph 
        (1) and identify which systems meet the needs of the National 
        Oceanic and Atmospheric Administration for the collection of 
        covered data, including with respect to the accuracy requirement 
        for post-storm assessment under subsection (b)(3).
            ``(3) <<NOTE: Deadline.>>  Plan.--Not later than 270 days 
        after the date of the enactment of the Consumer Option for an 
        Alternative System to Allocate Losses Act of 2012, the 
        Administrator shall, in consultation with the Office of the 
        Federal Coordinator for Meteorology, submit to Congress a plan 
        for the collection of covered data necessary to develop the 
        Named Storm Event Model and post-storm assessment required by 
        subsection (b) that addresses any gaps identified in paragraph 
        (2).

    ``(e) Coordination of Covered Data Collection and Maintenance by 
Participants.--
            ``(1) In general.--The Administrator shall, in consultation 
        with the Office of the Federal Coordinator for Meteorology, 
        coordinate the collection and maintenance of covered data by 
        participants under this section--
                    ``(A) to streamline the process of collecting 
                covered data in accordance with the protocol established 
                under subsection (c)(1); and
                    ``(B) to maintain transparency of such process and 
                the database established under subsection (f).
            ``(2) Sharing information.--The Administrator shall 
        establish a process for sharing among participants information 
        relevant to collecting and using covered data for--
                    ``(A) academic research;
                    ``(B) private sector use;
                    ``(C) public outreach; and
                    ``(D) such other purposes as the Administrator 
                considers appropriate.
            ``(3) Consultation.--In carrying out paragraphs (1) and (2), 
        the Administrator shall consult with the following:
                    ``(A) The Commanding General of the Corps of 
                Engineers.
                    ``(B) The Administrator of the Federal Emergency 
                Management Agency.
                    ``(C) The Commandant of the Coast Guard.
                    ``(D) The Director of the United States Geological 
                Survey.
                    ``(E) The Office of the Federal Coordinator for 
                Meteorology.
                    ``(F) The Director of the National Science 
                Foundation.
                    ``(G) The Administrator of the National Aeronautics 
                and Space Administration.
                    ``(H) Such public, private, and academic sector 
                entities as the Administrator considers appropriate for 
                purposes of carrying out the provisions of this section.

    ``(f) Establishment of Coastal Wind and Water Event Database.--

[[Page 126 STAT. 974]]

            ``(1) <<NOTE: Deadline.>>  In general.--Not later than 1 
        year after the date of the enactment of the Consumer Option for 
        an Alternative System to Allocate Losses Act of 2012, the 
        Administrator shall establish a database for the collection and 
        compilation of covered data--
                    ``(A) to support the protocol established under 
                subsection (c)(1); and
                    ``(B) for the purposes listed in subsection (e)(2).
            ``(2) Designation.--The database established under paragraph 
        (1) shall be known as the `Coastal Wind and Water Event 
        Database'.

    ``(g) <<NOTE: Deadline.>>  Comptroller General Study.--Not later 
than 1 year after the date of the enactment of the Consumer Option for 
an Alternative System to Allocate Losses Act of 2012, the Comptroller 
General of the United States shall--
            ``(1) <<NOTE: Audit.>>  complete an audit of Federal efforts 
        to collect covered data for purposes of the Consumer Option for 
        an Alternative System to Allocate Losses Act of 2012, which 
        audit shall--
                    ``(A) examine duplicated Federal efforts to collect 
                covered data; and
                    ``(B) determine the cost effectiveness of such 
                efforts; and
            ``(2) <<NOTE: Reports.>>  submit to the Committee on 
        Banking, Housing, and Urban Affairs and the Commerce, Science, 
        and Transportation of the Senate and the Committee on Financial 
        Services and the Committee on Science, Space, and Technology of 
        the House of Representatives a report on the findings of the 
        Comptroller General with respect to the audit completed under 
        paragraph (1).''.
SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE 
                              CLAIMS.

    Part A of chapter II of the National Flood Insurance Act of 1968 (42 
U.S.C. 4051 et seq.) is amended by adding at the end the following:
``SEC. 1337. <<NOTE: 42 USC 4057.>> ALTERNATIVE LOSS ALLOCATION 
                          SYSTEM FOR INDETERMINATE CLAIMS.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Emergency Management Agency.
            ``(2) COASTAL formula.--The term `COASTAL Formula' means the 
        formula established under subsection (b).
            ``(3) Coastal state.--The term `coastal State' has the 
        meaning given the term `coastal state' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            ``(4) Indeterminate loss.--
                    ``(A) In general.--The term `indeterminate loss' 
                means, as determined by an insurance claims adjuster 
                certified under the national flood insurance program and 
                in consultation with an engineer as appropriate, a loss 
                resulting from physical damage to, or loss of, property 
                located in any coastal State arising from the combined 
                perils of flood and wind associated with a named storm.
                    ``(B) Requirements.--An insurance claims adjuster 
                certified under the national flood insurance program 
                shall only determine that a loss is an indeterminate 
                loss if the claims adjuster determines that--

[[Page 126 STAT. 975]]

                          ``(i) no material remnant of physical 
                      buildings or man-made structures remain except 
                      building foundations for the specific property for 
                      which the claim is made; and
                          ``(ii) there is insufficient or no tangible 
                      evidence created, yielded, or otherwise left 
                      behind of the specific property for which the 
                      claim is made as a result of the named storm.
            ``(5) Named storm.--The term `named storm' means any 
        organized weather system with a defined surface circulation and 
        maximum winds of not less than 39 miles per hour which the 
        National Hurricane Center of the United States National Weather 
        Service names as a tropical storm or a hurricane.
            ``(6) Post-storm assessment.--The term `post-storm 
        assessment' means the post-storm assessment developed under 
        section 12312(b) of the Omnibus Public Land Management Act of 
        2009.
            ``(7) State.--The term `State' means a State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and any other territory or possession of the United 
        States.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Homeland Security.
            ``(9) Standard insurance policy.--The term `standard 
        insurance policy' means any insurance policy issued under the 
        national flood insurance program that covers loss or damage to 
        property resulting from water peril.
            ``(10) Property.--The term `property' means real or personal 
        property that is insured under a standard insurance policy for 
        loss or damage to structure or contents.
            ``(11) Under secretary.--The term `Under Secretary' means 
        the Under Secretary of Commerce for Oceans and Atmosphere, in 
        the Under Secretary's capacity as Administrator of the National 
        Oceanic and Atmospheric Administration.

    ``(b) Establishment of Flood Loss Allocation Formula for 
Indeterminate Claims.--
            ``(1) <<NOTE: Deadline. Regulations.>>  In general.--Not 
        later than 180 days after the date on which the protocol is 
        established under section 12312(c)(1) of the Omnibus Public Land 
        Management Act of 2009, the Secretary, acting through the 
        Administrator and in consultation with the Under Secretary, 
        shall establish by rule a standard formula to determine and 
        allocate wind losses and flood losses for claims involving 
        indeterminate losses.
            ``(2) Contents.--The standard formula established under 
        paragraph (1) shall--
                    ``(A) incorporate data available from the Coastal 
                Wind and Water Event Database established under section 
                12312(f) of the Omnibus Public Land Management Act of 
                2009;
                    ``(B) use relevant data provided on the National 
                Flood Insurance Program Elevation Certificate for each 
                indeterminate loss for which the formula is used;
                    ``(C) consider any sufficient and credible evidence, 
                approved by the Administrator, of the pre-event 
                condition of a specific property, including the findings 
                of any policyholder or insurance claims adjuster in 
                connection with the indeterminate loss to that specific 
                property;

[[Page 126 STAT. 976]]

                    ``(D) include other measures, as the Administrator 
                considers appropriate, required to determine and 
                allocate by mathematical formula the property damage 
                caused by flood or storm surge associated with a named 
                storm; and
                    ``(E) subject to paragraph (3), for each 
                indeterminate loss, use the post-storm assessment to 
                allocate water damage (flood or storm surge) associated 
                with a named storm.
            ``(3) <<NOTE: Certification.>>  Degree of accuracy 
        required.--The standard formula established under paragraph (1) 
        shall specify that the Administrator may only use the post-storm 
        assessment for purposes of the formula if the Under Secretary 
        certifies that the post-storm assessment has a degree of 
        accuracy of not less than 90 percent in connection with the 
        specific indeterminate loss for which the assessment and formula 
        are used.

    ``(c) Authorized Use of Post-storm Assessment and COASTAL Formula.--
            ``(1) In general.--Subject to paragraph (3), the 
        Administrator may use the post-storm assessment and the COASTAL 
        Formula to--
                    ``(A) review flood loss payments for indeterminate 
                losses, including as part of the quality assurance 
                reinspection program of the Federal Emergency Management 
                Agency for claims under the national flood insurance 
                program and any other process approved by the 
                Administrator to review and validate payments under the 
                national flood insurance program for indeterminate 
                losses following a named storm; and
                    ``(B) assist the national flood insurance program 
                to--
                          ``(i) properly cover qualified flood loss for 
                      claims for indeterminate losses; and
                          ``(ii) avoid paying for any loss or damage to 
                      property caused by any peril (including wind), 
                      other than flood or storm surge, that is not 
                      covered under a standard policy under the national 
                      flood insurance program.
            ``(2) Federal disaster declaration.--Subject to paragraph 
        (3), in order to expedite claims and reduce costs to the 
        national flood insurance program, following any major disaster 
        declared by the President under section 401 of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5170) relating to a named storm in a coastal State, the 
        Administrator may use the COASTAL Formula to determine and pay 
        for any flood loss covered under a standard insurance policy 
        under the national flood insurance program, if the loss is an 
        indeterminate loss.
            ``(3) National academy of sciences evaluation.--
                    ``(A) Evaluation required.--
                          ``(i) Evaluation.--Upon the issuance of the 
                      rule establishing the COASTAL Formula, and each 
                      time the Administrator modifies the COASTAL 
                      Formula, the National Academy of Sciences shall--
                                    ``(I) evaluate the expected 
                                financial impact on the national flood 
                                insurance program of the use of the 
                                COASTAL Formula as so established or 
                                modified; and
                                    ``(II) evaluate the validity of the 
                                scientific assumptions upon which the 
                                formula is based and

[[Page 126 STAT. 977]]

                                determine whether the COASTAL formula 
                                can achieve a degree of accuracy of not 
                                less than 90 percent in allocating flood 
                                losses for indeterminate losses.
                          ``(ii) Report.--The National Academy of 
                      Sciences shall submit a report containing the 
                      results of each evaluation under clause (i) to the 
                      Administrator, the Committee on Banking, Housing, 
                      and Urban Affairs and the Committee on Commerce, 
                      Science, and Transportation of the Senate, and the 
                      Committee on Financial Services and the Committee 
                      on Science, Space, and Technology of the House of 
                      Representatives.
                    ``(B) Effective date and applicability.--
                          ``(i) Effective date.--Paragraphs (1) and (2) 
                      of this subsection shall not take effect unless 
                      the report under subparagraph (A) relating to the 
                      establishment of the COASTAL Formula concludes 
                      that the use of the COASTAL Formula for purposes 
                      of paragraph (1) and (2) would not have an adverse 
                      financial impact on the national flood insurance 
                      program and that the COASTAL Formula is based on 
                      valid scientific assumptions that would allow a 
                      degree of accuracy of not less than 90 percent to 
                      be achieved in allocating flood losses for 
                      indeterminate losses.
                          ``(ii) Effect of modifications.--Unless the 
                      report under subparagraph (A) relating to a 
                      modification of the COASTAL Formula concludes that 
                      the use of the COASTAL Formula, as so modified, 
                      for purposes of paragraphs (1) and (2) would not 
                      have an adverse financial impact on the national 
                      flood insurance program and that the COASTAL 
                      Formula is based on valid scientific assumptions 
                      that would allow a degree of accuracy of not less 
                      than 90 percent to be achieved in allocating flood 
                      losses for indeterminate losses the Administrator 
                      may not use the COASTAL Formula, as so modified, 
                      for purposes of paragraphs (1) and (2).
                    ``(C) Funding.--Notwithstanding section 1310 of the 
                National Flood Insurance Act of 1968 (42 U.S.C. 4017), 
                there shall be available to the Administrator from the 
                National Flood Insurance Fund, of amounts not otherwise 
                obligated, not more than $750,000 to carry out this 
                paragraph.

    ``(d) <<NOTE: Deadline.>>  Disclosure of COASTAL Formula.--Not later 
than 30 days after the date on which a post-storm assessment is 
submitted to the Secretary under section 12312(b)(2)(C) of the Omnibus 
Public Land Management Act of 2009, for each indeterminate loss for 
which the COASTAL Formula is used pursuant to subsection (c)(2), the 
Administrator shall disclose to the policyholder that makes a claim 
relating to the indeterminate loss--
            ``(1) that the Administrator used the COASTAL Formula with 
        respect to the indeterminate loss; and
            ``(2) a summary of the results of the use of the COASTAL 
        Formula.

    ``(e) Consultation.--In carrying out subsections (b) and (c), the 
Secretary shall consult with--
            ``(1) the Under Secretary for Oceans and Atmosphere;

[[Page 126 STAT. 978]]

            ``(2) the Director of the National Institute of Standards 
        and Technology;
            ``(3) the Chief of Engineers of the Corps of Engineers;
            ``(4) the Director of the United States Geological Survey;
            ``(5) the Office of the Federal Coordinator for Meteorology;
            ``(6) State insurance regulators of coastal States; and
            ``(7) such public, private, and academic sector entities as 
        the Secretary considers appropriate for purposes of carrying out 
        such subsections.

    ``(f) Recordkeeping.--Each consideration and measure the 
Administrator determines necessary to carry out subsection (b) may be 
required, with advanced approval of the Administrator, to be provided 
for on the National Flood Insurance Program Elevation Certificate, or 
maintained otherwise on record if approved by the Administrator, for any 
property that qualifies for the COASTAL Formula under subsection (c).
    ``(g) Civil Penalty.--
            ``(1) In general.--If an insurance claims adjuster knowingly 
        and willfully makes a false or inaccurate determination relating 
        to an indeterminate loss, the Administrator may, after notice 
        and opportunity for hearing, impose on the insurance claims 
        adjuster a civil penalty of not more than $1,000.
            ``(2) Deposit.--Notwithstanding section 3302 of title 31, 
        United States Code, or any other law relating to the crediting 
        of money, the Administrator shall deposit in the National Flood 
        Insurance Fund any amounts received under this subsection, which 
        shall remain available until expended and be available to the 
        Administrator for purposes authorized for the National Flood 
        Insurance Fund without further appropriation.

    ``(h) Rule of Construction.--Nothing in this subsection shall be 
construed to require the Administrator to make any payment under the 
national flood insurance program, or an insurance company to make any 
payment, for an indeterminate loss based upon post-storm assessment or 
the COASTAL Formula.
    ``(i) Applicability.--Subsection (c) shall apply with respect to an 
indeterminate loss associated with a named storm that occurs after the 
date on which the Administrator issues the rule establishing the COASTAL 
Formula under subsection (b).
    ``(j) Rule of Construction.--Nothing in this subsection shall be 
construed to negate, set aside, or void any policy limit, including any 
loss limitation, set forth in a standard insurance policy.''.

                    Subtitle C--HEARTH Act Amendment

SEC. 100261. <<NOTE: 42 USC 11360 note.>> HEARTH ACT TECHNICAL 
                              CORRECTIONS.

    For purposes of title IV of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11360 et seq.)--
            (1) <<NOTE: Definition.>>  the term ``local government'' 
        includes an instrumentality of a unit of general purpose local 
        government other than a public housing agency that is 
        established pursuant to legislation and designated by the chief 
        executive to act on behalf of the local government with regard 
        to activities funded under such title IV and includes a 
        combination of general purpose local governments, such as an 
        association of governments, that is recognized by the Secretary 
        of Housing and Urban Development;

[[Page 126 STAT. 979]]

            (2) <<NOTE: Definition.>>  the term ``State'' includes any 
        instrumentality of any of the several States designated by the 
        Governor to act on behalf of the State and does not include the 
        District of Columbia;
            (3) for purposes of environmental review, the Secretary of 
        Housing and Urban Development shall continue to permit 
        assistance and projects to be treated as assistance for special 
        projects that are subject to section 305(c) of the Multifamily 
        Housing Property Disposition Reform Act of 1994 (42 U.S.C. 
        3547), and subject to the regulations issued by the Secretary of 
        Housing and Urban Development to implement such section; and
            (4) a metropolitan city and an urban county that each 
        receive an allocation under such title IV and are located within 
        a geographic area that is covered by a single continuum of care 
        may jointly request the Secretary of Housing and Urban 
        Development to permit the urban county or the metropolitan city, 
        as agreed to by such county and city, to receive and administer 
        their combined allocations under a single grant.

             TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE EXTENSION.

    Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)(7)(D)) is amended--
            (1) in the matter preceding clause (i), by striking ``and 
        before July 1, 2012,'' and inserting ``and before July 1, 
        2013,''; and
            (2) in clause (v), by striking ``and before July 1, 2012,'' 
        and inserting ``and before July 1, 2013,''.
SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL 
                              DIRECT STAFFORD LOANS FOR NEW 
                              BORROWERS ON OR AFTER JULY 1, 2013.

    (a) In General.--Section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e) is amended by adding at the end the following:
    ``(q) Eligibility for, and Interest Charges on, Federal Direct 
Stafford Loans for New Borrowers on or After July 1, 2013.--
            ``(1) In general.--Notwithstanding subsection (a) or any 
        other provision of this title, any borrower who was a new 
        borrower on or after July 1, 2013, shall not be eligible for a 
        Federal Direct Stafford Loan if the period of time for which the 
        borrower has received Federal Direct Stafford Loans, in the 
        aggregate, exceeds the period of enrollment described in 
        paragraph (3). Such borrower may still receive any Federal 
        Direct Unsubsidized Stafford Loan for which such borrower is 
        otherwise eligible.
            ``(2) Accrual of interest on federal direct stafford 
        loans.--Notwithstanding subsection (f)(1)(A) or any other 
        provision of this title and beginning on the date upon which a 
        borrower who is enrolled in a program of education or training 
        (including a course of study or program described in paragraph

[[Page 126 STAT. 980]]

        (3)(B) or (4)(B) of section 484(b)) for which borrowers are 
        otherwise eligible to receive Federal Direct Stafford Loans, 
        becomes ineligible for such loan as a result of paragraph (1), 
        interest on all Federal Direct Stafford Loans that were 
        disbursed to such borrower on or after July 1, 2013, shall 
        accrue. Such interest shall be paid or capitalized in the same 
        manner as interest on a Federal Direct Unsubsidized Stafford 
        Loan is paid or capitalized under section 428H(e)(2).
            ``(3) Period of enrollment.--
                    ``(A) In general.--The aggregate period of 
                enrollment referred to in paragraph (1) shall not exceed 
                the lesser of--
                          ``(i) a period equal to 150 percent of the 
                      published length of the educational program in 
                      which the student is enrolled; or
                          ``(ii) in the case of a borrower who was 
                      previously enrolled in one or more other 
                      educational programs that began on or after July 
                      1, 2013, and subject to subparagraph (B), a period 
                      of time equal to the difference between--
                                    ``(I) 150 percent of the published 
                                length of the longest educational 
                                program in which the borrower was, or 
                                is, enrolled; and
                                    ``(II) any periods of enrollment in 
                                which the borrower received a Federal 
                                Direct Stafford Loan.
                    ``(B) Regulations.--The Secretary shall specify in 
                regulation--
                          ``(i) how the aggregate period described in 
                      subparagraph (A) shall be calculated with respect 
                      to a borrower who was or is enrolled on less than 
                      a full-time basis; and
                          ``(ii) how such aggregate period shall be 
                      calculated to include a course of study or program 
                      described in paragraph (3)(B) or (4)(B) of section 
                      484(b), respectively.''.

    (b) <<NOTE: 20 USC 1089 note.>>  Inapplicability of Title IV 
Negotiated Rulemaking Requirement and Master Calendar Exception.--
Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 
1089(c), 1098a) shall not apply to the amendment made by subsection (a), 
or to any regulations promulgated under such amendment.

  DIVISION <<NOTE: Surface Transportation Extension Act of 2012, Part 
II.>> G--SURFACE TRANSPORTATION EXTENSION
SEC. 110001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This division may be cited as the ``Surface Transportation Extension 
Act of 2012, Part II''.

                      TITLE I--FEDERAL-AID HIGHWAYS

SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.

    (a) In General.--Section 111 of the Surface Transportation Extension 
Act of 2011, Part II (Public Law 112-30; 125 Stat. 343; 126 Stat. 272) 
is amended--

[[Page 126 STAT. 981]]

            (1) by striking ``the period beginning on October 1, 2011, 
        and ending on June 30, 2012,'' each place it appears and 
        inserting ``fiscal year 2012'';
            (2) by striking ``\3/4\ of'' each place it appears; and
            (3) in subsection (a) by striking ``June 30, 2012'' and 
        inserting ``September 30, 2012''.

    (b) Use of Funds.--Section 111(c) of the Surface Transportation 
Extension Act of 2011, Part II (125 Stat. 343; 126 Stat. 272) is 
amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A) by striking ``, except that 
                during such period'' and all that follows before the 
                period at the end; and
                    (B) in subparagraph (B)(ii) by striking 
                ``$479,250,000'' and inserting ``$639,000,000''; and
            (2) by striking paragraph (4).

    (c) Extension of Authorizations Under Title V of SAFETEA-LU.--
Section 111(e)(2) of the Surface Transportation Extension Act of 2011, 
Part II (125 Stat. 346; 126 Stat. 272) is amended by striking ``the 
period beginning on October 1, 2011, and ending on June 30, 2012.'' and 
inserting ``fiscal year 2012.''.
    (d) Administrative Expenses.--Section 112(a) of the Surface 
Transportation Extension Act of 2011, Part II (125 Stat. 346; 126 Stat. 
272) is amended by striking ``$294,641,438 for the period beginning on 
October 1, 2011, and ending on June 30, 2012.'' and inserting 
``$392,855,250 for fiscal year 2012.''.

             TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

SEC. 112001. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
                              ADMINISTRATION HIGHWAY SAFETY 
                              PROGRAMS.

    (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) of 
SAFETEA-LU (119 Stat. 1519) is amended by striking ``$235,000,000 for 
each of fiscal years 2009 through 2011'' and all that follows through 
the period at the end and inserting ``and $235,000,000 for each of 
fiscal years 2009 through 2012.''.
    (b) Highway Safety Research and Development.--Section 2001(a)(2) of 
SAFETEA-LU (119 Stat. 1519) is amended by striking ``and $81,183,000 for 
the period beginning on October 1, 2011, and ending on June 30, 2012.'' 
and inserting ``and $108,244,000 for fiscal year 2012.''.
    (c) Occupant Protection Incentive Grants.--Section 2001(a)(3) of 
SAFETEA-LU (119 Stat. 1519) is amended by striking ``$25,000,000 for 
each of fiscal years 2006 through 2011'' and all that follows through 
the period at the end and inserting ``and $25,000,000 for each of fiscal 
years 2006 through 2012.''.
    (d) Safety Belt Performance Grants.--Section 2001(a)(4) of SAFETEA-
LU (119 Stat. 1519) is amended by striking ``and $36,375,000 for the 
period beginning on October 1, 2011, and ending on June 30, 2012.'' and 
inserting ``and $48,500,000 for fiscal year 2012.''.
    (e) State Traffic Safety Information System Improvements.--Section 
2001(a)(5) of SAFETEA-LU (119 Stat. 1519) is amended by striking ``for 
each of fiscal years 2006 through 2011''

[[Page 126 STAT. 982]]

and all that follows through the period at the end and inserting ``for 
each of fiscal years 2006 through 2012.''.
    (f) Alcohol-impaired Driving Countermeasures Incentive Grant 
Program.--Section 2001(a)(6) of SAFETEA-LU (119 Stat. 1519) is amended 
by striking ``$139,000,000 for each of fiscal years fiscal years 2009 
through 2011'' and all that follows through the period at the end and 
inserting ``and $139,000,000 for each of fiscal years 2009 through 
2012.''.
    (g) National Driver Register.--Section 2001(a)(7) of SAFETEA-LU (119 
Stat. 1520) is amended by striking ``and $3,087,000 for the period 
beginning on October 1, 2011, and ending on June 30, 2012.'' and 
inserting ``and $4,116,000 for fiscal year 2012.''.
    (h) High Visibility Enforcement Program.--Section 2001(a)(8) of 
SAFETEA-LU (119 Stat. 1520) is amended by striking ``for each of fiscal 
years 2006 through 2011'' and all that follows through the period at the 
end and inserting ``for each of fiscal years 2006 through 2012.''.
    (i) Motorcyclist Safety.--Section 2001(a)(9) of SAFETEA-LU (119 
Stat. 1520) is amended by striking ``$7,000,000 for each of fiscal years 
2009 through 2011'' and all that follows through the period at the end 
and inserting ``and $7,000,000 for each of fiscal years 2009 through 
2012.''.
    (j) Child Safety and Child Booster Seat Safety Incentive Grants.--
Section 2001(a)(10) of SAFETEA-LU (119 Stat. 1520) is amended by 
striking ``$7,000,000 for each of fiscal years 2009 through 2011'' and 
all that follows through the period at the end and inserting ``and 
$7,000,000 for each of fiscal years 2009 through 2012.''.
    (k) Administrative Expenses.--Section 2001(a)(11) of SAFETEA-LU (119 
Stat. 1520) is amended by striking ``$25,328,000 for fiscal year 2011'' 
and all that follows through the period at the end and inserting ``and 
$25,328,000 for each of fiscal years 2011 and 2012.''.
SEC. 112002. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY 
                              ADMINISTRATION PROGRAMS.

    (a) Federal Motor Carrier Safety Administration Grants.--Section 
31104(a)(8) of title 49, United States Code, is amended to read as 
follows:
            ``(8) $212,000,000 for fiscal year 2012.''.

    (b) Administrative Expenses.--
            (1) In general.--Section 31104(i)(1)(H) of title 49, United 
        States Code, is amended to read as follows:
                    ``(H) $244,144,000 for fiscal year 2012.''.
            (2) Technical correction.--Section 31104(i)(1)(F) of title 
        49, United States Code, is amended to read as follows:
                    ``(F) $239,828,000 for fiscal year 2010;''.

    (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 Stat. 1715) 
is amended--
            (1) in paragraph (1) by striking ``and $22,500,000 for the 
        period beginning on October 1, 2011, and ending on June 30, 
        2012.'' and inserting ``and $30,000,000 for fiscal year 2012.'';
            (2) in paragraph (2) by striking ``2011 and $24,000,000 for 
        the period beginning on October 1, 2011, and ending on June 30, 
        2012.'' and inserting ``2012.'';

[[Page 126 STAT. 983]]

            (3) in paragraph (3) by striking ``2011 and $3,750,000 for 
        the period beginning on October 1, 2011, and ending on June 30, 
        2012.'' and inserting ``2012.'';
            (4) in paragraph (4) by striking ``2011 and $18,750,000 for 
        the period beginning on October 1, 2011, and ending on June 30, 
        2012.'' and inserting ``2012.''; and
            (5) in paragraph (5) by striking ``2011 and $2,250,000 for 
        the period beginning on October 1, 2011, and ending on June 30, 
        2012.'' and inserting ``2012.''.

    (d) New Entrant Audits.--Section 31144(g)(5)(B) of title 49, United 
States Code, is amended by striking ``and up to $21,750,000 for the 
period beginning on October 1, 2011, and ending on June 30, 2012,''.
    (e) Outreach and Education.--Section 4127(e) of SAFETEA-LU (119 
Stat. 1741) <<NOTE: 49 USC 31100 note.>> is amended by striking ``and 
2011 (and $750,000 to the Federal Motor Carrier Safety Administration, 
and $2,250,000 to the National Highway Traffic Safety Administration, 
for the period beginning on October 1, 2011, and ending on June 30, 
2012)'' and inserting ``2011, and 2012''.

    (f) Working Group for Development of Practices and Procedures to 
Enhance Federal-State Relations.--Section 4213(d) of SAFETEA-LU (49 
U.S.C. 14710 note; 119 Stat. 1759) is amended by striking ``June 30, 
2012'' and inserting ``September 30, 2012''.
SEC. 112003. ADDITIONAL PROGRAMS.

    Section 7131(c) of SAFETEA-LU (119 Stat. 1910) is amended by 
striking ``and $870,000 for the period beginning on October 1, 2011, and 
ending on June 30, 2012,'' and inserting ``and $1,160,000 for fiscal 
year 2012''.

                TITLE III--PUBLIC TRANSPORTATION PROGRAMS

SEC. 113001. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

    Section 5305(g) of title 49, United States Code, is amended by 
striking ``2011 and for the period beginning on October 1, 2011, and 
ending on June 30, 2012'' and inserting ``2012''.
SEC. 113002. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.

    Section 5307(b)(2) of title 49, United States Code, is amended--
            (1) by striking the paragraph heading and inserting 
        ``special rule for fiscal years 2005 through 2012.--'' ;
            (2) in subparagraph (A) by striking ``2011 and the period 
        beginning on October 1, 2011, and ending on June 30, 2012,'' and 
        inserting ``2012,''; and
            (3) in subparagraph (E)--
                    (A) by striking the subparagraph heading and 
                inserting ``maximum amounts in fiscal years 2008 through 
                2012 .--''; and
                    (B) in the matter preceding clause (i) by striking 
                ``2011 and during the period beginning on October 1, 
                2011, and ending on June 30, 2012'' and inserting 
                ``2012''.

[[Page 126 STAT. 984]]

SEC. 113003. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.

    Section 5309(m) of title 49, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking the paragraph heading and inserting 
                ``fiscal years 2006 through 2012.--'';
                    (B) in the matter preceding subparagraph (A) by 
                striking ``2011 and the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting 
                ``2012''; and
                    (C) in subparagraph (A)(i) by striking ``2011 and 
                $150,000,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting 
                ``2012'';
            (2) in paragraph (6)--
                    (A) in subparagraph (B) by striking ``2011 and 
                $11,250,000 shall be available for the period beginning 
                on October 1, 2011, and ending on June 30, 2012,'' and 
                inserting ``2012''; and
                    (B) in subparagraph (C) by striking ``though 2011 
                and $3,750,000 shall be available for the period 
                beginning on October 1, 2011, and ending on June 30, 
                2012,'' and inserting ``through 2012''; and
            (3) in paragraph (7)--
                    (A) in subparagraph (A)--
                          (i) in the matter preceding clause (i)--
                                    (I) in the first sentence by 
                                striking ``2011 and $7,500,000 shall be 
                                available for the period beginning on 
                                October 1, 2011, and ending on June 30, 
                                2012,'' and inserting ``2012''; and
                                    (II) in the second sentence by 
                                inserting ``each fiscal year'' before 
                                the colon;
                          (ii) in clause (i) by striking ``for each 
                      fiscal year and $1,875,000 for the period 
                      beginning on October 1, 2011, and ending on June 
                      30, 2012,'';
                          (iii) in clause (ii) by striking ``for each 
                      fiscal year and $1,875,000 for the period 
                      beginning on October 1, 2011, and ending on June 
                      30, 2012,'';
                          (iv) in clause (iii) by striking ``for each 
                      fiscal year and $750,000 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,'';
                          (v) in clause (iv) by striking ``for each 
                      fiscal year and $750,000 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,'';
                          (vi) in clause (v) by striking ``for each 
                      fiscal year and $750,000 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,'';
                          (vii) in clause (vi) by striking ``for each 
                      fiscal year and $750,000 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,'';
                          (viii) in clause (vii) by striking ``for each 
                      fiscal year and $487,500 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,''; and
                          (ix) in clause (viii) by striking ``for each 
                      fiscal year and $262,500 for the period beginning 
                      on October 1, 2011, and ending on June 30, 
                      2012,'';
                    (B) in subparagraph (B) by striking clause (vii) and 
                inserting the following:

[[Page 126 STAT. 985]]

                          ``(vii) $13,500,000 for fiscal year 2012.'';
                    (C) in subparagraph (C) by striking ``and during the 
                period beginning on October 1, 2011, and ending on June 
                30, 2012,'';
                    (D) in subparagraph (D) by striking ``and not less 
                than $26,250,000 shall be available for the period 
                beginning on October 1, 2011, and ending on June 30, 
                2012,''; and
                    (E) in subparagraph (E) by striking ``and $2,250,000 
                shall be available for the period beginning on October 
                1, 2011, and ending on June 30, 2012,''.
SEC. 113004. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN 
                              URBANIZED AREAS.

    Section 5311(c)(1)(G) of title 49, United States Code, is amended to 
read as follows:
                    ``(G) $15,000,000 for fiscal year 2012.''.
SEC. 113005. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

    Section 5337 of title 49, United States Code, is amended by striking 
subsection (g).
SEC. 113006. <<NOTE: Time periods.>> AUTHORIZATIONS FOR PUBLIC 
                              TRANSPORTATION.

    (a) Formula and Bus Grants.--Section 5338(b) of title 49, United 
States Code, is amended--
            (1) in paragraph (1) by striking subparagraph (G) and 
        inserting the following:
                    ``(G) $8,360,565,000 for fiscal year 2012.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A) by striking ``$113,500,000 
                for each of fiscal years 2009 through 2011, and 
                $85,125,000 for the period beginning on October 1, 2011, 
                and ending on June 30, 2012,'' and inserting ``and 
                $113,500,000 for each of fiscal years 2009 through 
                2012'';
                    (B) in subparagraph (B) by striking ``$4,160,365,000 
                for each of fiscal years 2009 through 2011, and 
                $3,120,273,750 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $4,160,365,000 for each of fiscal years 2009 through 
                2012'';
                    (C) in subparagraph (C) by striking ``$51,500,000 
                for each of fiscal years 2009 through 2011, and 
                $38,625,000 for the period beginning on October 1, 2011, 
                and ending on June 30, 2012,'' and inserting ``and 
                $51,500,000 for each of fiscal years 2009 through 
                2012'';
                    (D) in subparagraph (D) by striking ``$1,666,500,000 
                for each of fiscal years 2009 through 2011, and 
                $1,249,875,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $1,666,500,000 for each of fiscal years 2009 through 
                2012'';
                    (E) in subparagraph (E) by striking ``$984,000,000 
                for each of fiscal years 2009 through 2011, and 
                $738,000,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $984,000,000 for each of fiscal years 2009 through 
                2012'';
                    (F) in subparagraph (F) by striking ``$133,500,000 
                for each of fiscal years 2009 through 2011, and 
                $100,125,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $133,500,000 for each of fiscal years 2009 through 
                2012'';

[[Page 126 STAT. 986]]

                    (G) in subparagraph (G) by striking ``$465,000,000 
                for each of fiscal years 2009 through 2011, and 
                $348,750,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $465,000,000 for each of fiscal years 2009 through 
                2012'';
                    (H) in subparagraph (H) by striking ``$164,500,000 
                for each of fiscal years 2009 through 2011, and 
                $123,375,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $164,500,000 for each of fiscal years 2009 through 
                2012'';
                    (I) in subparagraph (I) by striking ``$92,500,000 
                for each of fiscal years 2009 through 2011, and 
                $69,375,000 for the period beginning on October 1, 2011, 
                and ending on June 30, 2012,'' and inserting ``and 
                $92,500,000 for each of fiscal years 2009 through 
                2012'';
                    (J) in subparagraph (J) by striking ``$26,900,000 
                for each of fiscal years 2009 through 2011, and 
                $20,175,000 for the period beginning on October 1, 2011, 
                and ending on June 30, 2012,'' and inserting ``and 
                $26,900,000 for each of fiscal years 2009 through 
                2012'';
                    (K) in subparagraph (K) by striking ``for each of 
                fiscal years 2006 through 2011 and $2,625,000 for the 
                period beginning on October 1, 2011, and ending on June 
                30, 2012,'' and inserting ``for each of fiscal years 
                2006 through 2012'';
                    (L) in subparagraph (L) by striking ``for each of 
                fiscal years 2006 through 2011 and $18,750,000 for the 
                period beginning on October 1, 2011, and ending on June 
                30, 2012,'' and inserting ``for each of fiscal years 
                2006 through 2012'';
                    (M) in subparagraph (M) by striking ``$465,000,000 
                for each of fiscal years 2009 through 2011, and 
                $348,750,000 for the period beginning on October 1, 
                2011, and ending on June 30, 2012,'' and inserting ``and 
                $465,000,000 for each of fiscal years 2009 through 
                2012''; and
                    (N) in subparagraph (N) by striking ``$8,800,000 for 
                each of fiscal years 2009 through 2011, and $6,600,000 
                for the period beginning on October 1, 2011, and ending 
                on June 30, 2012,'' and inserting ``and $8,800,000 for 
                each of fiscal years 2009 through 2012''.

    (b) Capital Investment Grants.--Section 5338(c)(7) of title 49, 
United States Code, is amended to read as follows:
            ``(7) $1,955,000,000 for fiscal year 2012.''.

    (c) Research and University Research Centers.--Section 5338(d) of 
title 49, United States Code, is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``through 2011, and $33,000,000 for the period 
        beginning on October 1, 2011, and ending on June 30, 2012,'' and 
        inserting ``through 2011, and $44,000,000 for fiscal year 
        2012,''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Additional authorizations.--
                    ``(A) Research.--Of amounts authorized to be 
                appropriated under paragraph (1) for fiscal year 2012, 
                the Secretary shall allocate for each of the activities 
                and projects described in subparagraphs (A) through (F) 
                of paragraph

[[Page 126 STAT. 987]]

                (1) an amount equal to 63 percent of the amount 
                allocated for fiscal year 2009 under each such 
                subparagraph.
                    ``(B) University centers program.--
                          ``(i) Fiscal year 2012.--Of the amounts 
                      allocated under paragraph (1)(C) for the 
                      university centers program under section 5506 for 
                      fiscal year 2012, the Secretary shall allocate for 
                      each program described in clauses (i) through 
                      (iii) and (v) through (viii) of paragraph (2)(A) 
                      an amount equal to 63 percent of the amount 
                      allocated for fiscal year 2009 under each such 
                      clause.
                          ``(ii) Funding.--If the Secretary determines 
                      that a project or activity described in paragraph 
                      (2) received sufficient funds in fiscal year 2011, 
                      or a previous fiscal year, to carry out the 
                      purpose for which the project or activity was 
                      authorized, the Secretary may not allocate any 
                      amounts under clause (i) for the project or 
                      activity for fiscal year 2012 or any subsequent 
                      fiscal year.''.

    (d) Administration.--Section 5338(e)(7) of title 49, United States 
Code, is amended to read as follows:
            ``(7) $98,713,000 for fiscal year 2012.''.
SEC. 113007. AMENDMENTS TO SAFETEA-LU.

    (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of SAFETEA-LU 
(119 Stat. 1572) is amended by striking ``2011 and the period beginning 
on October 1, 2011, and ending on June 30, 2012,'' and inserting 
``2012,''.
    (b) Public-private Partnership Pilot Program.--Section 3011 of 
SAFETEA-LU (49 U.S.C. 5309 note; 119 Stat. 1588) is amended--
            (1) in subsection (c)(5) by striking ``2011 and the period 
        beginning on October 1, 2011, and ending on June 30, 2012'' and 
        inserting ``2012''; and
            (2) in the second sentence of subsection (d) by striking 
        ``2011 and the period beginning on October 1, 2011, and ending 
        on June 30, 2012,'' and inserting ``2012''.

    (c) Elderly Individuals and Individuals With Disabilities Pilot 
Program.--Section 3012(b)(8) of SAFETEA-LU (49 U.S.C. 5310 note; 119 
Stat. 1593) is amended by striking ``June 30, 2012'' and inserting 
``September 30, 2012''.
    (d) Obligation Ceiling.--Section 3040(8) of SAFETEA-LU (119 Stat. 
1639) is amended to read as follows:
            ``(8) $10,458,278,000 for fiscal year 2012, of which not 
        more than $8,360,565,000 shall be from the Mass Transit 
        Account.''.

    (e) Project Authorizations for New Fixed Guideway Capital 
Projects.--Section 3043 of SAFETEA-LU (119 Stat. 1640) is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``2011 and the period beginning on October 1, 
        2011, and ending on June 30, 2012,'' and inserting ``2012''; and
            (2) in subsection (c), in the matter preceding paragraph 
        (1), by striking ``2011 and the period beginning on October 1, 
        2011, and ending on June 30, 2012,'' and inserting ``2012''.

[[Page 126 STAT. 988]]

    (f) Allocations for National Research and Technology Programs.--
Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note; 119 Stat. 1706) is 
amended--
            (1) in subsection (b) by striking ``fiscal year or period'' 
        and inserting ``fiscal year''; and
            (2) by striking subsection (c)(2) and inserting the 
        following:
            ``(2) for fiscal year 2012, in amounts equal to 63 percent 
        of the amounts allocated for fiscal year 2009 under each of 
        paragraphs (2), (3), (5), and (8) through (25) of subsection 
        (a).''.

                        TITLE IV--EFFECTIVE DATE

SEC. 114001. <<NOTE: 49 USC 5305 note.>> EFFECTIVE DATE.

    This division and the amendments made by this division shall take 
effect on July 1, 2012.

                      DIVISION H--BUDGETARY EFFECTS

SEC. 120001. BUDGETARY EFFECTS.

    (a) PAYGO Scorecard.--The budgetary effects of this Act shall not be 
entered on either PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010.
    (b) Senate PAYGO Scorecard.--The budgetary effects of this Act shall 
not be recorded on any PAYGO scorecard maintained for purposes of 
section 201 of S. Con. Res. 21 (110th Congress).

    Approved July 6, 2012.

LEGISLATIVE HISTORY--H.R. 4348 (S. 1813):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-557 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 158 (2012):
            Apr. 18, considered and passed House.
            Apr. 24, considered and passed Senate, amended, in lieu of 
                S. 1813.
            June 29, House and Senate agreed to conference report.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012):
            July 6, Presidential remarks.

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