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and under which highway tolls are being col-
lected as of such date of enactment.’’. 
(b) SET-ASIDE
FOR
PROJECTS
NOT
INVOLVING 
HIGHWAY TOLLS.—At the end of section 1012(b)(8) of 
such Act add the following: 
‘‘(D) SET-ASIDE FOR PROJECTS NOT IN-
VOLVING
HIGHWAY
TOLLS.—Of the amounts 
made available to carry out this subsection, 
$3,000,000 per fiscal year shall be available 
only for congestion pricing pilot projects that do 
not involve highway tolls.’’. 
(c) CONFORMING AMENDMENTS.—Section 1012(b) 
of such Act is amended—
(1) in the subsection heading by striking 
‘‘VALUE
PRICING’’ and inserting ‘‘CONGESTION 
PRICING’’; 
(2) in paragraph (2)—
(A) by striking ‘‘(2) Notwithstanding’’ and 
inserting the following: 
‘‘(2) FEDERAL SHARE; ELIGIBLE COSTS.—Not-
withstanding’’; 
(B) in the first sentence by striking ‘‘pro-
grams’’ and inserting ‘‘projects’’; and 
(C) in the second sentence by striking 
‘‘program’’ and inserting ‘‘project’’;
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(3) in paragraph (3) by striking ‘‘(3) Reve-
nues’’ and inserting the following: 
‘‘(3) USE OF REVENUES.—Revenues’’; 
(4) in paragraph (4)—
(A) by striking ‘‘(4) Notwithstanding’’ and 
inserting the following: 
‘‘(4) USE OF TOLLS ON INTERSTATE SYSTEM.—
Notwithstanding’’; 
(B) by striking ‘‘value pricing pilot pro-
gram’’ and inserting ‘‘congestion pricing pilot 
project’’; 
(5) in paragraph (5)—
(A) by striking ‘‘(5) The Secretary’’ and 
inserting the following: 
‘‘(5) MONITORING.—The Secretary’’; and 
(B) by striking ‘‘programs’’ the first and 
second 
place 
it 
appears 
and 
inserting 
‘‘projects’’; and 
(6) in paragraph (6) by striking ‘‘value pricing 
pilot program’’ and inserting ‘‘congestion pricing 
pilot project’’.
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SEC. 1210. CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY. 
Section 149(b)(5) of title 23, United States Code, is 
amended by inserting ‘‘improve transportation systems 
management and operations,’’ after ‘‘intersections,’’. 
SEC. 1211. SPECIAL RULES FOR STATE ASSUMPTION OF RE-
SPONSIBILITIES. 
(a) LIMITATIONS.—Section 167(a) of title 23, United 
States Code, as added by section 1207(a) of this Act, is 
amended by adding at the end the following: 
‘‘(3) LIMITATIONS.—
‘‘(A) PROCEDURAL AND SUBSTANTIVE RE-
QUIREMENTS.—A State that assumes the re-
sponsibilities of the Secretary under this section 
shall be subject to the same procedural and 
substantive requirements as would apply if the 
responsibilities were carried out by the Sec-
retary. When a State assumes responsibilities 
for carrying out a Federal law under this sec-
tion, the State assents to Federal jurisdiction 
and shall be solely responsible and solely liable 
for complying with and carrying out that law 
instead of the Secretary. 
‘‘(B) 
ASSUMPTION
OF
RESPONSIBIL-
ITIES.—Any responsibility of the Secretary not 
assumed by the State in a memorandum of un-
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derstanding shall remain a responsibility of the 
Secretary. 
‘‘(C) POWERS
OF
OTHER
AGENCIES.—
Nothing in this section preempts or limits any 
power, jurisdiction, responsibility, or authority 
of an agency, other than the Department of 
Transportation, with respect to a project.’’. 
(b) ACCEPTANCE OF FEDERAL COURTS JURISDIC-
TION; TERMINATION OF AGREEMENTS.—Section 167(b) 
of title 23, United States Code, as added by section 
1207(a) of this Act, is amended by adding at the end the 
following: 
‘‘(5) ACCEPTANCE OF FEDERAL COURTS JURIS-
DICTION.—A memorandum of understanding with a 
State under this section shall include a provision 
under which the State consents to accept the juris-
diction of the Federal courts for the compliance, dis-
charge, and enforcement of any responsibility of the 
Secretary that the State may assume under the 
memorandum. 
‘‘(6) 
TERMINATION
OF
AGREEMENTS.—A 
memorandum of understanding with a State under 
this section shall include a provision authorizing the 
Secretary to terminate the agreement if the Sec-
retary, after providing an opportunity for a hearing,
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issues a finding that the State is not in compliance 
with the terms of the agreement.’’. 
(c) STATE SUBJECT TO FEDERAL LAWS.—Section 
167 of title 23, United States Code, as added by section 
1207(a) of this Act, is further amended by adding at the 
end the following: 
‘‘(f) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming responsibilities of the Secretary under 
this section, a State agency entering into a memorandum 
of understanding under subsection (b) is deemed to be a 
Federal agency to the extent the State is carrying out the 
Secretary’s responsibilities under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), this 
title, and any other provision of Federal law.’’. 
SEC. 1212. OPENING OF INTERSTATE RAMPS. 
(a) IN GENERAL.—Not later 30 days after the date 
of enactment of this Act, the Secretary shall open the 
ramp connecting Interstate Route 495 and Arena Drive 
in Prince George’s County, Maryland, for the purpose of 
allowing motor vehicles to exit Interstate Route 495 in 
both northern and southern directions onto Arena Drive. 
Such ramp shall be open for 24 hours a day, every day 
during the calendar year. 
(b) FULLY OPENING ARENA DRIVE RAMP.—
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(1) STUDY.—The Secretary shall conduct a 
study to determine the most appropriate method for 
opening the ramps for allowing motor vehicles to 
enter Interstate Route 495 from Arena Drive. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall 
transmit to Congress a report on the results of the 
study. 
(c) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in the section shall be construed as altering cur-
rent traffic management protocols to the Arena Drive 
ramps during stadium events. 
Subtitle C—Mobility and Efficiency 
SEC. 1301. NATIONAL CORRIDOR INFRASTRUCTURE IM-
PROVEMENT PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish and 
implement a program to make allocations to States for 
highway construction projects in corridors of national sig-
nificance to promote economic growth and international 
or interregional trade pursuant to the selection factors 
provided in this section. A State must submit an applica-
tion to the Secretary in order to receive an allocation 
under this section. 
(b) SELECTION PROCESS.—
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(1) PRIORITY.—In the selection process under 
this section, the Secretary shall give priority to 
projects in corridors that are a part of, or will be 
designated as part of, the Dwight D. Eisenhower 
National System of Interstate and Defense High-
ways after completion of the work described in the 
application received by the Secretary and to any 
project that will be completed within 5 years of the 
date of the allocation of funds for the project. 
(2) SELECTION
FACTORS.—In making alloca-
tions under this section, the Secretary shall consider 
the following factors: 
(A) The extent to which the corridor pro-
vides a link between 2 existing segments of the 
Interstate System. 
(B) The extent to which the project will fa-
cilitate major multistate or regional mobility 
and economic growth and development in areas 
underserved by existing highway infrastructure. 
(C) The extent to which commercial vehicle 
traffic in the corridor—
(i) has increased since the date of en-
actment of the North American Free 
Trade Agreement Implementation Act (16 
U.S.C. 4401 et seq.); and
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(ii) is projected to increase in the fu-
ture. 
(D) The extent to which international 
truck-borne commodities move through the cor-
ridor. 
(E) The extent to which the project will 
make improvements to an existing segment of 
the Interstate System that will result in a de-
crease in congestion. 
(F) The reduction in commercial and other 
travel time through a major freight corridor ex-
pected as a result of the project. 
(G) The value of the cargo carried by com-
mercial vehicle traffic in the corridor and the 
economic costs arising from congestion in the 
corridor. 
(H) The extent of leveraging of Federal 
funds provided to carry out this section, includ-
ing—
(i) use of innovative financing; 
(ii) combination with funding provided 
under other sections of this Act and title 
23, United States Code; and 
(iii) combination with other sources of 
Federal, State, local, or private funding.
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(c) PERIOD OF AVAILABILITY.—Funds allocated for 
a project to a State under this section shall remain avail-
able for obligation in that State until 6 months from the 
day on which they are allocated. Sums not obligated within 
6 months of the day on which they are allocated shall be 
available to the Secretary to be allocated for other projects 
eligible under this section. 
(d) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall be determined in ac-
cordance with section 120(b) of title 23, United States 
Code. 
(e) APPLICABILITY OF TITLE 23.—Except as pro-
vided in subsections (c) and (d), funds made available by 
section 1101(a)(10) of this Act to carry out this section 
shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 
23, United States Code. 
(f) STATE DEFINED.—In this section, the term 
‘‘State’’ has the meaning such term has under section 101 
of title 23, United States Code. 
SEC. 1302. COORDINATED BORDER INFRASTRUCTURE PRO-
GRAM. 
(a) GENERAL AUTHORITY.—The Secretary shall im-
plement a coordinated border infrastructure program 
under which the Secretary shall distribute funds to border
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States to improve the safe movement of motor vehicles at 
or across the border between the United States and Can-
ada and the border between the United States and Mexico. 
(b) ELIGIBLE USES.—A State may use funds appor-
tioned under this section only for—
(1) improvements in a border region to existing 
transportation and supporting infrastructure that fa-
cilitate cross-border motor vehicle and cargo move-
ments; 
(2) construction of highways and related safety 
and safety enforcement facilities in a border region 
that facilitate motor vehicle and cargo movements 
related to international trade; 
(3) operational improvements in a border re-
gion, including improvements relating to electronic 
data interchange and use of telecommunications, to 
expedite cross border motor vehicle and cargo move-
ment; 
(4) modifications to regulatory procedures to 
expedite safe and efficient cross border motor vehicle 
and cargo movements; and 
(5) international coordination of transportation 
planning, programming, and border operation with 
Canada and Mexico relating to expediting cross bor-
der motor vehicle and cargo movements.
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(c) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among bor-
der States sums authorized to be appropriated to carry 
out this section for such fiscal year as follows: 
(1) 20 percent in the ratio that—
(A) the total number of incoming commer-
cial trucks that pass through the land border 
ports of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of incoming commer-
cial trucks that pass through such ports of 
entry within the boundaries of all the border 
States, as determined by the Secretary. 
(2) 30 percent in the ratio that—
(A) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through land border ports of entry within the 
boundaries of a border State, as determined by 
the Secretary; bears to 
(B) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through such ports of entry within the bound-
aries of all the border States, as determined by 
the Secretary. 
(3) 25 percent in the ratio that—
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(A) the total weight of incoming cargo by 
commercial trucks that pass through land bor-
der ports of entry within the boundaries of a 
border State, as determined by the Secretary; 
bears to 
(B) the total weight of incoming cargo by 
commercial trucks that pass through such ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(4) 25 percent of the ratio that—
(A) the total number of land border ports 
of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of land border ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(d) APPLICABILITY
OF TITLE 23.—Funds made 
available to carry out this section shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable and shall 
remain available until expended and the Federal share of 
the cost of a project under this section shall be 80 percent. 
(e) DEFINITIONS.—In this section, the following defi-
nitions apply:
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(1) BORDER REGION.—The term ‘‘border re-
gion’’ means any portion of a border State within 20 
miles of an international land border with Canada or 
Mexico. 
(2) BORDER STATE.—The term ‘‘border State’’ 
means any State that has an international land bor-
der with Canada or Mexico. 
(3) COMMERCIAL TRUCK.—The term ‘‘commer-
cial truck’’ means a commercial motor vehicle as de-
fined in section 31301(4) (other than subparagraph 
(B)) of title 49, United States Code. 
(4) MOTOR VEHICLE.—The term ‘‘motor vehi-
cle’’ has the meaning such term has under section 
101(a) of title 23, United States Code. 
(5) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of such title 23. 
SEC. 1303. FREIGHT INTERMODAL CONNECTORS. 
(a) IN GENERAL.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight intermodal connector program to 
improve productivity and improve the efficiency of 
the transportation of freight, while mitigating con-
gestion in the area of freight intermodal connectors. 
(2) PURPOSES.—The purposes of the program 
shall be—
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(A) to facilitate and support intermodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
intermodal connectors and mitigate the impact 
of congestion in the area of such connectors; 
and 
(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight intermodal connectors. 
(b) STATE RESPONSIBILITIES.—Under the program, 
each State shall ensure that intermodal freight transpor-
tation and trade facilitation and are adequately addressed 
integrated into the project development process, including 
transportation planning, through final design and con-
struction of freight related transportation projects. 
(c) ELIGIBLE PROJECTS.—
(1) IN GENERAL.—Projects eligible for funding 
under this section may include the construction of 
and improvements to publicly owned freight inter-
modal connectors, the provision of access to such 
connectors, and operational improvements for such 
connectors (including capital investment for intel-
ligent transportation systems); except that a project 
located within the boundaries of an intermodal 
freight facility shall only include highway infrastruc-
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ture modifications necessary to facilitate direct inter-
modal access between the connector and the facility. 
(2) SPECIAL RULE.—If a State that does not 
have any freight intermodal connectors within its 
boundaries or has only freight intermodal connectors 
within its boundaries that are in good condition and 
provide an adequate level of service, projects within 
the boundaries of the State that are eligible for as-
sistance under section 103(b)(6) of title 23, United 
States Code, relating to the National Highway Sys-
tem, shall be eligible for funding under this section. 
(d) PRIORITY.—Under the program, a State shall 
give priority to projects on freight intermodal connectors 
to the National Highway System as identified according 
to the criteria set forth in the report of the Department 
of Transportation to Congress entitled ‘‘Pulling Together: 
The NHS and its Connections to Major Intermodal Termi-
nals’’. 
(e) APPORTIONMENT.—On October 1 of each fiscal 
year after the deductions under subsection (i), the Sec-
retary shall apportion among the States sums made avail-
able to carry out this section for such fiscal year as fol-
lows: 
(1) 33.3 percent in the ratio that—
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(A) the number of freight intermodal con-
nectors identified in the most recent Intermodal 
Freight Connectors study of the Federal High-
way Administration within the boundaries of a 
State; bears to 
(B) the total number of such connectors 
within the boundaries of all the States. 
(2) 33.3 percent in the ratio that—
(A) the total of each State’s annual con-
tributions to the Highway Trust Fund (other 
than the Mass Transit Account) attributable to 
commercial motor vehicles; bears to 
(B) the total of such annual contributions 
by all States. 
(3) 33.4 percent in the same ratios as funds are 
apportioned for the National Highway System under 
clauses (i), (ii), (iii), and (iv) of section 104(b)(1)(A) 
of title 23, United States Code. 
(f) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost 
of a project under this section shall be 80 percent.
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(g) UPDATE REPORT.—Not later than August 1, 
2005, the Secretary shall publish an update to the report 
entitled ‘‘Pulling Together: the National Highway System 
and its Connections to Major Intermodal Terminals’’. 
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FREIGHT INTERMODAL CONNECTORS.—The 
term ‘‘freight intermodal connector’’ means the 
roadway that connects to an intermodal freight facil-
ity that carries or will carry intermodal traffic. 
(2) INTERMODAL
FREIGHT
FACILITY.—The 
term ‘‘intermodal freight facility’’ means a port, air-
port, truck-rail terminal, and pipeline-truck ter-
minal. 
(3) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of title 23, 
United States Code. 
(i) DEDUCTIONS.—
(1) 
FREIGHT
INTERMODAL
DISTRIBUTION 
PILOT GRANT PROGRAM.—Whenever an apportion-
ment is made of the sums made available for car-
rying out this section for a fiscal year, the Secretary 
shall deduct $6,000,000 for each of fiscal years 
2005 through 2009 for the freight intermodal dis-
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tribution pilot grant program under section 1307 of 
this Act. 
(2) DEDICATED TRUCK LANES.—Whenever an 
apportionment is made of the sums made available 
for carrying out this section for a fiscal year, the 
Secretary shall deduct for dedicated truck lanes 
under section 1305 of this title $165,000,000 for 
each of fiscal years 2005 through 2008 and 
$170,000,000 for fiscal year 2009. 
SEC. 1304. PROJECTS OF NATIONAL AND REGIONAL SIG-
NIFICANCE. 
(a) FINDINGS.—Congress finds the following: 
(1) Under current law, surface transportation 
programs rely primarily on formula capital appor-
tionments to States. 
(2) Despite the significant increase for surface 
transportation program funding in the Transpor-
tation Equity Act of the 21st Century, current levels 
of investment are insufficient to fund critical high-
cost transportation infrastructure facilities that ad-
dress critical national economic and transportation 
needs. 
(3) Critical high-cost transportation infrastruc-
ture facilities often include multiple levels of govern-
ment, agencies, modes of transportation, and trans-
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portation goals and planning processes that are not 
easily addressed or funded within existing surface 
transportation program categories. 
(4) Projects of national and regional signifi-
cance have national and regional benefits, including 
improving economic productivity by facilitating inter-
national trade, relieving congestion, and improving 
transportation safety by facilitating passenger and 
freight movement. 
(5) The benefits of such projects described in 
paragraph (4) accrue to local areas, States, and the 
Nation as a result of the effect such projects have 
on the national transportation system. 
(6) A program dedicated to constructing 
projects of national and regional significance is nec-
essary to improve the safe, secure, and efficient 
movement of people and goods throughout the 
United States and improve the health and welfare of 
the national economy. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish a program to provide grants to qualified 
entities for projects of national and regional significance. 
(c) DEFINITIONS.—
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eli-
gible project costs’’ means the costs of—
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(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
neering 
and 
design 
work, 
and 
other 
preconstruction activities; and 
(B) construction, reconstruction, rehabili-
tation, and acquisition of real property (includ-
ing land related to the project and improve-
ments to land), environmental mitigation, con-
struction contingencies, acquisition of equip-
ment, and operational improvements. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means any surface transportation project 
eligible for Federal assistance under title 23, United 
States Code, including freight railroad projects and 
activities eligible under such title. 
(3) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means a State as defined in section 101(a) 
of title 23, United States Code. 
(d) ELIGIBILITY.—To be eligible for assistance under 
this section, a project shall have eligible project costs that 
are reasonably anticipated to equal or exceed the lesser 
of—
(1) $500,000,000; or
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(2) 75 percent of the amount of Federal high-
way assistance funds apportioned for the most re-
cently completed fiscal year to the State in which 
the project is located. 
(e) APPLICATIONS.—Each qualified entity seeking to 
receive a grant under this section for an eligible project 
shall submit to the Secretary an application in such form 
and in accordance with such requirements as the Secretary 
shall establish. 
(f) COMPETITIVE GRANT SELECTION AND CRITERIA 
FOR GRANTS.—
(1) IN GENERAL.—The Secretary shall—
(A) establish criteria for selecting among 
projects that meet the eligibility criteria speci-
fied in subsection (d); 
(B) conduct a national solicitation for ap-
plications; and 
(C) award grants on a competitive basis. 
(2) CRITERIA
FOR
GRANTS.—The Secretary 
may approve a grant under this section for a project 
only if the Secretary determines that the project—
(A) is based on the results of preliminary 
engineering; 
(B) is justified based on the project’s abil-
ity—
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(i) to generate national economic ben-
efits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product; 
(ii) to reduce congestion, including 
impacts in the State, region, and Nation; 
(iii) to improve transportation safety, 
including reducing transportation acci-
dents, injuries, and fatalities; 
(iv) to otherwise enhance the national 
transportation system; and 
(v) to garner support for non-Federal 
financial commitments and provide evi-
dence of stable and dependable financing 
sources to construct, maintain, and operate 
the infrastructure facility; and 
(C) is supported by an acceptable degree of 
non-Federal financial commitments, including 
evidence of stable and dependable financing 
sources to construct, maintain, and operate the 
infrastructure facility. 
(3) SELECTION CONSIDERATIONS.—In selecting 
a project under this section, the Secretary shall con-
sider the extent to which the project—
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(A) leverages Federal investment by en-
couraging non-Federal contributions to the 
project, including contributions from public-pri-
vate partnerships; 
(B) uses new technologies, including intel-
ligent transportation systems, that enhance the 
efficiency of the project. 
(C) helps maintain or protect the environ-
ment. 
(4) PRELIMINARY
ENGINEERING.—In evalu-
ating a project under paragraph (2)(A), the Sec-
retary shall analyze and consider the results of pre-
liminary engineering for the project. 
(5) NON-FEDERAL FINANCIAL COMMITMENT.—
(A) EVALUATION OF PROJECT.—In evalu-
ating a project under paragraph (2)(C), the 
Secretary shall require that—
(i) the proposed project plan provides 
for the availability of contingency amounts 
that the Secretary determines to be reason-
able to cover unanticipated cost increases; 
and 
(ii) each proposed non-Federal source 
of capital and operating financing is stable,
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reliable, and available within the proposed 
project timetable. 
(B) CONSIDERATIONS.—In assessing the 
stability, reliability, and availability of proposed 
sources of non-Federal financing under sub-
paragraph (A), the Secretary shall consider—
(i) existing financial commitments; 
(ii) the degree to which financing 
sources are dedicated to the purposes pro-
posed; 
(iii) any debt obligation that exists or 
is proposed by the recipient for the pro-
posed project; and 
(iv) the extent to which the project 
has a non-Federal financial commitment 
that exceeds the required non-Federal 
share of the cost of the project. 
(6) REGULATIONS.—Not later than 120 days 
after the date of enactment of this Act, the Sec-
retary shall issue regulations on the manner in 
which the Secretary will evaluate and rate the 
projects based on the results of preliminary engi-
neering, project justification, and the degree of non-
Federal financial commitment, as required under 
this subsection.
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(7) PROJECT
EVALUATION
AND
RATING.—A 
proposed project may advance from preliminary en-
gineering to final design and construction only if the 
Secretary finds that the project meets the require-
ments of this subsection and there is a reasonable 
likelihood that the project will continue to meet such 
requirements. In making such findings, the Sec-
retary shall evaluate and rate the project as ‘‘highly 
recommended’’, 
‘‘recommended’’, 
or 
‘‘not 
rec-
ommended’’ based on the results of preliminary engi-
neering, the project justification criteria, and the de-
gree of non-Federal financial commitment, as re-
quired under this subsection. In rating the projects, 
the Secretary shall provide, in addition to the overall 
project rating, individual ratings for each of the cri-
teria established under the regulations issued under 
paragraph (6). 
(g) LETTERS
OF INTENT
AND FULL FUNDING 
GRANT AGREEMENTS.—
(1) LETTER OF INTENT.—
(A) IN
GENERAL.—The Secretary may 
issue a letter of intent to an applicant announc-
ing an intention to obligate, for a project under 
this section, an amount from future available 
budget authority specified in law that is not
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more than the amount stipulated as the finan-
cial participation of the Secretary in the 
project. 
(B) NOTIFICATION.—At least 60 days be-
fore issuing a letter under subparagraph (A) or 
entering into a full funding grant agreement, 
the Secretary shall notify in writing the Com-
mittee on Transportation and Infrastructure of 
the House of Representatives and the Com-
mittee on Environment and Public Works of the 
Senate of the proposed letter or agreement. The 
Secretary shall include with the notification a 
copy of the proposed letter or agreement as well 
as the evaluations and ratings for the project. 
(C) NOT AN OBLIGATION.—The issuance 
of a letter is deemed not to be an obligation 
under sections 1108(c) and (d), 1501, and 
1502(a) of title 31, United States Code, or an 
administrative commitment. 
(D) OBLIGATION
OR
COMMITMENT.—An 
obligation or administrative commitment may 
be made only when contract authority is allo-
cated to a project. 
(2) FULL FUNDING GRANT AGREEMENT.—
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(A) IN
GENERAL.—A project financed 
under this subsection shall be carried out 
through a full funding grant agreement. The 
Secretary shall enter into a full funding grant 
agreement based on the evaluations and ratings 
required under subsection (f)(7). 
(B) TERMS.—If the Secretary makes a full 
funding grant agreement with an applicant, the 
agreement shall—
(i) establish the terms of participation 
by the United States Government in a 
project under this section; 
(ii) establish the maximum amount of 
Government financial assistance for the 
project; 
(iii) cover the period of time for com-
pleting the project, including a period ex-
tending beyond the period of an authoriza-
tion; and 
(iv) make timely and efficient man-
agement of the project easier according to 
the laws of the United States. 
(C) AGREEMENT.—An agreement under 
this paragraph obligates an amount of available 
budget authority specified in law and may in-
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clude 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. The agreement shall state that 
the contingent commitment is not an obligation 
of the Government. Interest and other financing 
costs of efficiently carrying out a part of the 
project within a reasonable time are a cost of 
carrying out the project under a full funding 
grant agreement, except that eligible costs may 
not be more than the cost of the most favorable 
financing terms reasonably available for the 
project at the time of borrowing. The applicant 
shall certify, in a way satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financ-
ing terms. 
(3) AMOUNTS.—The total estimated amount of 
future obligations of the Government and contingent 
commitments to incur obligations covered by all out-
standing letters of intent and full funding grant 
agreements may be not more than the greater of the 
amount authorized to carry out this section or an 
amount equivalent to the last 2 fiscal years of fund-
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ing authorized to carry out this section less an 
amount the Secretary reasonably estimates is nec-
essary for grants under this section not covered by 
a letter. The total amount covered by new letters 
and contingent commitments included in full funding 
grant agreements may be not more than a limitation 
specified in law. 
(h) GRANT REQUIREMENTS.—
(1) IN GENERAL.—A grant for a project under 
this section shall be subject to all of the require-
ments of title 23, United States Code, and chapter 
52 of title 49, United States Code. 
(2) OTHER TERMS AND CONDITIONS.—The Sec-
retary shall require that all grants under this section 
be subject to all terms, conditions, and requirements 
that the Secretary decides are necessary or appro-
priate for purposes of this section, including require-
ments for the disposition of net increases in value of 
real property resulting from the project assisted 
under this section. 
(i) GOVERNMENT’S SHARE
OF PROJECT COST.—
Based on engineering studies, studies of economic feasi-
bility, and information on the expected use of equipment 
or facilities, the Secretary shall estimate the cost of a 
project receiving assistance under this section. A grant for
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the project is for 80 percent of the project cost, unless 
the grant recipient requests a lower grant percentage. 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. 
(j) FISCAL CAPACITY CONSIDERATIONS.—If the Sec-
retary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (i) the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
(k) REPORTS.—
(1) ANNUAL REPORT.—Not later than the first 
Monday in February of each year, 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 pro-
posal on the allocation of amounts to be made avail-
able to finance grants under this section. 
(2) RECOMMENDATIONS
ON
FUNDING.—The 
annual report under this paragraph shall include 
evaluations and ratings, as required under sub-
section (f). The report shall also include rec-
ommendations of projects for funding based on the
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evaluations and ratings and on existing commit-
ments and anticipated funding levels for the next 3 
fiscal years and for the next 10 fiscal years based 
on information currently available to the Secretary. 
(l) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost 
of a project under this section shall be as provided in this 
section. 
SEC. 1305. DEDICATED TRUCK LANES. 
(a) IN GENERAL.—The Secretary shall establish and 
implement a pilot program to make allocations to States 
for the construction of projects that separate commercial 
truck traffic from other motor vehicle traffic. A State 
must submit an application to the Secretary in order to 
receive an allocation under this section. 
(b) SELECTION PROCESS.—
(1) PRIORITY.—In the selection process under 
this section, the Secretary shall give priority to 
projects that provide additional capacity.