148
under the pilot program when considering re-
newal of a memorandum of understanding with
the State under the program.
‘‘(c) SELECTION OF STATES FOR PILOT PROGRAM.—
‘‘(1) APPLICATION.—To be eligible to partici-
pate in the pilot program, a State shall submit to
the Secretary an application that contains such in-
formation as the Secretary may require. At a min-
imum, an application shall include—
‘‘(A) a description of the projects or class-
es of projects for which the State seeks to as-
sume responsibilities under subsection (a)(2);
and
‘‘(B) a certification that the State has the
capability to assume such responsibilities.
‘‘(2) PUBLIC NOTICE.—Before entering into a
memorandum of understanding allowing a State to
participate in the pilot program, the Secretary
shall—
‘‘(A) publish notice in the Federal Register
of the Secretary’s intent to allow the State to
participate in the program, including a copy of
the State’s application to the Secretary and the
terms of the proposed agreement with the
State; and
149
‘‘(B) provide an opportunity for public
comment.
‘‘(3) SELECTION
CRITERIA.—The Secretary
may approve the application of a State to assume re-
sponsibilities under the program only if—
‘‘(A) the requirements under paragraph
(2) have been met; and
‘‘(B) the Secretary determines that the
State has the capability to assume the respon-
sibilities.
‘‘(4) OTHER FEDERAL AGENCY VIEWS.—Before
assigning to a State a responsibility of the Secretary
that requires the Secretary to consult with another
Federal agency, the Secretary shall solicit the views
of the Federal agency.
‘‘(d) STATE DEFINED.—With respect to the rec-
reational trails program, the term ‘State’ means the State
agency designated by the Governor of the State in accord-
ance with section 206(c)(1).
‘‘(e) PRESERVATION OF PUBLIC INTEREST CONSID-
ERATION.—Nothing in this section shall be construed to
limit the requirements under any applicable law providing
for the consideration and preservation of the public inter-
est, including public participation and community values
in transportation decisionmaking.’’.
150
(b) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 1 of such title is amended by add-
ing at the end the following:
‘‘167. State assumption of responsibilities for certain programs and projects.’’.
SEC. 1208. HOV FACILITIES.
(a) IN GENERAL.—Subchapter I of chapter 1 of title
23, United States Code, is amended by adding at the end
the following:
‘‘§ 168. HOV facilities
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY
OF
STATE
AGENCIES.—A
State agency that has jurisdiction over the operation
of a HOV facility shall establish the occupancy re-
quirements of vehicles operating on the facility.
‘‘(2) OCCUPANCY
REQUIREMENT.—Except as
otherwise provided by this section, no fewer than 2
occupants per vehicle may be required for use of a
HOV facility.
‘‘(b) EXCEPTIONS.—Notwithstanding the occupancy
requirements of subsection (a)(2), the following exceptions
shall apply with respect to a State agency operating a
HOV facility:
‘‘(1) MOTORCYCLES AND BICYCLES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility.
151
‘‘(B) SAFETY EXCEPTION.—A State agen-
cy may restrict use of the HOV facility by mo-
torcycles or bicycles (or both) if the agency cer-
tifies to the Secretary that such use would cre-
ate a safety hazard and the Secretary accepts
the certification. The Secretary may accept a
certification under this subparagraph only after
the Secretary publishes notice of the certifi-
cation in the Federal Register and provides an
opportunity for public comment.
‘‘(2) PUBLIC
TRANSPORTATION
VEHICLES.—
The State agency may allow public transportation
vehicles to use the HOV facility if the agency—
‘‘(A) establishes requirements for clearly
identifying the vehicles; and
‘‘(B) establishes procedures for enforcing
the restrictions on the use of the facility by
such vehicles.
‘‘(3) HIGH OCCUPANCY TOLL VEHICLES.—The
State agency may allow vehicles not otherwise ex-
empt pursuant to this subsection to use the HOV fa-
cility if the operators of such vehicles pay a toll
charged by the agency for use of the facility and the
agency—
152
‘‘(A) establishes a program that addresses
how motorists can enroll and participate in the
toll program;
‘‘(B) develops, manages, and maintains a
system that will automatically collect the toll;
and
‘‘(C) establishes policies and procedures
to—
‘‘(i) manage the demand to use the fa-
cility by varying the toll amount that is
charged; and
‘‘(ii) enforce violations of use of the
facility.
‘‘(4) LOW
EMISSION
AND
ENERGY-EFFICIENT
VEHICLES.—
‘‘(A) INHERENTLY
LOW-EMISSION
VEHI-
CLE.—Before September 30, 2009, the State
agency may allow vehicles that are certified as
inherently low-emission vehicles pursuant to
section 88.311–93 of title 40, Code of Federal
Regulations, and are labeled in accordance with
section 88.312–93 of such title, to use the HOV
facility if the agency establishes procedures for
enforcing the restrictions on the use of the fa-
cility by such vehicles.
153
‘‘(B) OTHER LOW EMISSION AND ENERGY-
EFFICIENT VEHICLES.—Before September 30,
2009, the State agency may allow vehicles cer-
tified as low emission and energy-efficient vehi-
cles under subsection (e), and labeled in accord-
ance with subsection (e), to use the HOV facil-
ity if the operators of such vehicles pay a toll
charged by the agency for use of the facility
and the agency—
‘‘(i) establishes a program that ad-
dresses the selection of vehicles under this
paragraph; and
‘‘(ii) establishes procedures for enforc-
ing the restrictions on the use of the facil-
ity by such vehicles.
‘‘(C) AMOUNT OF TOLLS.—Under subpara-
graph (B), a State agency may charge no toll
or a toll that is less than tolls charged under
paragraph (3).
‘‘(c) REQUIREMENTS APPLICABLE TO TOLLS.—
‘‘(1) IN
GENERAL.—Tolls may be charged
under subsections (b)(3) and (b)(4) notwithstanding
section 301 and, except as provided in paragraphs
(2) and (3), subject to the requirements of section
129.
154
‘‘(2) HOV FACILITIES
ON
THE
INTERSTATE
SYSTEM.—Notwithstanding section 129, tolls may be
charged under subsections (b)(3) and (b)(4) on a
HOV facility on the Interstate System.
‘‘(3) EXCESS
TOLL
REVENUES.—If a State
agency makes a certification under the last sentence
of section 129(a)(3) with respect to toll revenues col-
lected under subsections (b)(3) and (b)(4), the
State, in the use of tolls revenues under that sen-
tence, shall give priority consideration to projects for
developing alternatives to single occupancy vehicle
travel and projects for improving highway safety.
‘‘(d) HOV FACILITY MANAGEMENT, OPERATION,
MONITORING, AND ENFORCEMENT.—
‘‘(1) IN GENERAL.—A State agency that allows
vehicles to use a HOV facility under subsection
(b)(3) or (b)(4) in a fiscal year shall certify to the
Secretary that the agency will carry out the fol-
lowing responsibilities with respect to the facility in
the fiscal year:
‘‘(A) Establishing, managing, and sup-
porting a performance monitoring, evaluation,
and reporting program for the facility that pro-
vides for continuous monitoring, assessment,
and reporting on the impacts that such vehicles
155
may have on the operation of the facility and
adjacent highways.
‘‘(B) Establishing, managing, and sup-
porting an enforcement program that ensures
that the facility is being operated in accordance
with the requirements of this section.
‘‘(C) Limiting or discontinuing the use of
the facility by such vehicles if the presence of
such vehicles has degraded the operation of the
facility.
‘‘(2) DEGRADED FACILITY.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the operation of a HOV facility shall
be considered to be degraded if vehicles oper-
ating on the facility are failing to maintain a
minimum average operating speed 90 percent of
the time over a consecutive 6-month period dur-
ing morning or evening weekday peak hour pe-
riods (or both).
‘‘(B) 
MINIMUM
AVERAGE
OPERATING
SPEED
DEFINED.—In subparagraph (A), the
term 
‘minimum 
average 
operating 
speed’
means—
156
‘‘(i) 45 miles per hour, in the case of
a HOV facility with a speed limit of 50
miles per hour or greater; and
‘‘(ii) not more than 10 miles per hour
below the speed limit, in the case of a
HOV facility with a speed limit of less
than 50 miles per hour.
‘‘(e) CERTIFICATION OF LOW EMISSION AND EN-
ERGY-EFFICIENT VEHICLES.—Not later than 6 months
after the date of enactment of this section, the Adminis-
trator of the Environmental Protection Agency shall issue
a final rule establishing requirements for certification of
vehicles as low emission and energy-efficient vehicles for
purposes of this section and requirements for the labeling
of such vehicles.
‘‘(f) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) ALTERNATIVE FUEL VEHICLE.—The term
‘alternative fuel vehicle’ means a vehicle that oper-
ates on—
‘‘(A) methanol, denatured ethanol, or other
alcohols;
‘‘(B) a mixture containing at least 85 per-
cent of methanol, denatured ethanol, and other
alcohols by volume with gasoline or other fuels;
157
‘‘(C) natural gas;
‘‘(D) liquefied petroleum gas;
‘‘(E) hydrogen;
‘‘(F) coal derived liquid fuels;
‘‘(G) fuels (except alcohol) derived from bi-
ological materials;
‘‘(H) electricity (including electricity from
solar energy); or
‘‘(I) any other fuel that the Secretary pre-
scribes by regulation that is not substantially
petroleum and that would yield substantial en-
ergy security and environmental benefits.
‘‘(2) HOV FACILITY.—The term ‘HOV facility’
means a high occupancy vehicle facility.
‘‘(3) LOW EMISSION AND ENERGY EFFICIENT
VEHICLE.—The term ‘low emission and energy-effi-
cient vehicle’ means a vehicle that—
‘‘(A) has been certified by the Adminis-
trator of the Environmental Protection Agency
as meeting the Tier II emission level established
in regulations prescribed by the Administrator
under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)) for that make and model year
vehicle; and
158
‘‘(B)(i) has been certified by the Adminis-
trator to have a 45-mile-per-gallon or greater
fuel economy highway rating; or
‘‘(ii) is an alternative fuel vehicle.
‘‘(4) PUBLIC TRANSPORTATION VEHICLE.—The
term ‘public transportation vehicle’ means a vehicle
that provides public transportation (as defined in
section 5302(a) of title 49).
‘‘(5) STATE AGENCY.—The term ‘State agency’,
as used with respect to a HOV facility, means an
agency of a State or local government having juris-
diction over the operation of the facility and includes
a State transportation department.’’.
(b) CONFORMING AMENDMENTS.—
(1) PROGRAM EFFICIENCIES.—Section 102 of
title 23, United States Code, is amended by striking
subsection (a) and redesignating subsections (b) and
(c) as subsections (a) and (b), respectively.
(2) CHAPTER ANALYSIS.—The analysis for sub-
chapter I of chapter 1 of such title is amended by
adding at the end the following:
‘‘168. HOV facilities.’’.
(c) TECHNICAL AMENDMENT.—Section 102(b) of
title 23, United States Code, as redesignated by subsection
(b)(1) of this section, is amended by striking ‘‘10 years’’
and all that follows through ‘‘after’’ and inserting ‘‘10
159
years (or such longer period as the State requests and the
Secretary determines to be reasonable) after’’.
(d) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary and the States should provide ad-
ditional incentives (including the use of high occupancy
vehicle lanes on State and Interstate highways) for the
purchase and use of hybrid and other fuel efficient vehi-
cles, which have been proven to minimize air emissions
and decrease consumption of fossil fuels.
SEC. 1209. CONGESTION PRICING PILOT PROGRAM.
(a) ESTABLISHMENT.—Section 1012(b)(1) of the
Intermodal Surface Transportation Efficiency Act of 1991
(23 U.S.C. 149 note; 105 Stat. 1938) is amended to read
as follows:
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN
GENERAL.—The Secretary may
enter into cooperative agreements with State
and local governments to carry out not more
than 25 congestion pricing pilot projects.
‘‘(B) PREVIOUSLY APPROVED PROJECTS.—
Projects carried out under paragraph (1) shall
include each project approved under this sub-
section before the date of enactment of the
Transportation Equity Act: A Legacy for Users
160
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’’;
161
(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’’.
162
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-
163
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,
164
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.—
165
(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.—
166
(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
167
(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,
including—
(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.
168
(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
169
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.
170
(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—
171
(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:
172
(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—
173
(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-
174
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—
175
(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.
176
(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-
177
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-
178
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—
179
(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
180
(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
ability—
181
(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—
182
(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,
183
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.
184
(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
185
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.—
186
(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-
187
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-
188
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
189
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
190
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.