‘‘(4) purchasing and installing any connected 
vehicle equipment (including vehicle applications, 
roadside units, and back-office equipment). 
‘‘(f) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To be eligible for a grant 
under this section, an entity described under sub-
section (c) shall submit to the Secretary an applica-
tion in such form, at such time, and containing such 
information as the Secretary determines is appro-
priate, including— 
‘‘(A) a plan to deploy and provide for the 
long-term operation and maintenance of con-
nected vehicle technologies to improve safety, 
efficiency, and system performance; 
‘‘(B) objectives to improve and measure 
system performance in 1 or more of— 
‘‘(i) system productivity; 
‘‘(ii) mobility, including impact on 
freight movements; 
‘‘(iii) livability and accessibility of 
goods, services, and activities; 
‘‘(iv) environment and fuel use; and 
‘‘(v) traveler and system safety, in-
cluding advising individuals of potentially 
unsafe conditions and mitigating the im-
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pact of events that may cause vehicle acci-
dents; and 
‘‘(C) a plan for partnering with private 
sector entities or public agencies, including 
multimodal and multijurisdictional entities, re-
search institutions, organizations representing 
transportation and technology leaders, or other 
transportation stakeholders. 
‘‘(2) CRITERIA.—When evaluating applications 
under this section, the Secretary may not require 
that a pilot deployment under the program be based 
on research carried out or funded by the Depart-
ment of Transportation. 
‘‘(g) GRANT SELECTION.— 
‘‘(1) GRANT AWARDS.—Not later than 1 year 
after the date of enactment of this section, and each 
fiscal year thereafter, the Secretary shall award 
grants to not less than 3 and not more than 5 eligi-
ble entities described in subsection (c). 
‘‘(2) GEOGRAPHIC DIVERSITY.—In awarding a 
grant under this section, the Secretary shall ensure, 
to the extent practicable, that grant recipients rep-
resent diverse geographic areas of the United States, 
including urban areas and rural areas. 
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‘‘(h) GRANT MANAGEMENT.—In carrying out the 
grant program under this section, the Secretary shall— 
‘‘(1) emphasize project sustainability and long- 
term funding goals; 
‘‘(2) create a noncompetitive environment and 
encourage collaboration among project sites; 
‘‘(3) balance the privacy of users and secure op-
erations of pilot projects, while maintaining the abil-
ity to measure performance factors; and 
‘‘(4) be wary of technological maturity of con-
nected vehicle applications and impact of long-term 
viability of non-deployment ready applications. 
‘‘(i) SMART GRID DEFINED.—In this section, the 
term ‘Smart Grid’ means a system that provides for any 
of the smart grid functions set forth in section 1306(d) 
of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17386(d)).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 5 of title 23, United States Code, is amended by add-
ing at the end the following new item: 
‘‘521. Connected vehicle deployment pilot program.’’. 
SEC. 4. AUTOMATED DRIVING SYSTEM DEMONSTRATION 
PROGRAM. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding at the end the fol-
lowing: 
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‘‘§ 522. Automated driving system demonstration pro-
gram 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation shall establish an automated driving system 
demonstration program to make grants, on a com-
petitive basis, to eligible entities to— 
‘‘(A) test the safe integration of automated 
driving system technologies into the on-road 
transportation system of the United States and 
demonstrate how challenges to the safe integra-
tion of such technologies can be addressed; 
‘‘(B) ensure significant data gathering and 
sharing of project data to identify— 
‘‘(i) a baseline of safety metrics need-
ed to characterize the safety risk of inte-
grating automated driving system tech-
nologies into the transportation system; 
‘‘(ii) a baseline for the safety of auto-
mated driving system technology integra-
tion; and 
‘‘(iii) a baseline of roadway character-
istics needed for the safe and efficient op-
eration of automated driving system tech-
nologies; and 
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‘‘(C) encourage collaboration and partner-
ships of multiple stakeholders to carry out sub-
paragraphs (A) and (B). 
‘‘(b) ELIGIBLE ENTITIES.—The Secretary may make 
a grant under this section to the following: 
‘‘(1) A State or a group of States. 
‘‘(2) A transit agency. 
‘‘(3) A metropolitan planning organization that 
serves an urbanized area with a population of more 
than 200,000 individuals. 
‘‘(4) A unit of local government or a group of 
local governments. 
‘‘(5) A political subdivision of a State or local 
government. 
‘‘(6) A special purpose district or public author-
ity with a transportation function, including a port 
authority. 
‘‘(7) A public academic institution, public re-
search institution, a multijurisdictional group (as 
such term is defined in section 520), or a consortia 
of research institutions or academic institutions. 
‘‘(c) APPLICATIONS.—To be eligible for a grant under 
this section, an entity described under subsection (b) shall 
submit to the Secretary an application in such form, at 
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such time, and containing such information as the Sec-
retary determines is appropriate. 
‘‘(d) ELIGIBLE USES.— 
‘‘(1) IN GENERAL.—A grant recipient may use 
funds awarded under this section to demonstrate 
automated driving system technologies, including— 
‘‘(A) advanced safety systems, including 
vehicle-to-vehicle and vehicle-to-infrastructure 
communications, technologies associated with 
autonomous vehicles, and other collision avoid-
ance technologies, including systems using cel-
lular technology; 
‘‘(B) innovative mobility solutions that in-
volve deployment of automated vehicles; 
‘‘(C) automated driving systems that en-
hance safety and mobility for elderly and dis-
abled individuals; 
‘‘(D) demonstration of shared interoper-
able fleet of automated vehicles; 
‘‘(E) demonstration and validation of ex-
changes of data that can support the safe, effi-
cient, and secure interoperable integration of 
automated driving systems; 
‘‘(F) any technology associated with auto-
mated driving systems; and 
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‘‘(G) any deployment concept eligible under 
the automated driving system demonstration 
grant program carried out by the Department 
of Transportation before the date of enactment 
of this section. 
‘‘(2) ADDITIONAL
USES.—A grant recipient 
may use funds awarded under this section for infra-
structure needs, including capital expenses and 
maintenance activities, necessary to the proper and 
safe operation of the automated driving system tech-
nology. 
‘‘(e) GRANT SELECTION.— 
‘‘(1) GRANT
AWARDS.—The Secretary may 
award grants to not less than 8 and not more than 
10 eligible entities described under subsection (b) in 
a fiscal year. 
‘‘(2) GEOGRAPHIC DIVERSITY.— 
‘‘(A) IN GENERAL.—In awarding a grant 
under this section, the Secretary shall ensure, 
to the maximum extent practicable, that grant 
recipients represent diverse geographic areas of 
the United States, including urban areas and 
rural areas. 
‘‘(B) RURAL SET-ASIDE.—Not less than 20 
percent of the amounts made available to carry 
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out this section shall be reserved for projects 
serving rural areas, to the extent there are suf-
ficient eligible applications for such projects. 
‘‘(f) DEMONSTRATION REQUIREMENTS.—The Sec-
retary shall ensure that any project carried out with funds 
provided under this section shall— 
‘‘(1) carry out research and development of 
automated driving system technologies of Level 3 or 
greater, as such term is defined pursuant to sub-
section (h); 
‘‘(2) include physical and fully operational dem-
onstrations; 
‘‘(3) include gathering and sharing of all rel-
evant data with the Department of Transportation 
and the relevant State transportation agencies; and 
‘‘(4) address scalability to be applicable across 
the United States to similar road environments. 
‘‘(g) REPORT.—Not later than 1 year after the date 
on which a grant recipient receives a grant under this sec-
tion, and annually thereafter until such grant is expended, 
the recipient shall submit to the Secretary and to the 
transportation agency of the State in which the project 
takes place, a report that describes— 
‘‘(1) lessons learned and how the demonstration 
has met project objectives; 
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‘‘(2) a summary of any complications experi-
enced with the project, including complications re-
lated to pedestrians, infrastructure, and other vehi-
cles; 
‘‘(3) how to use the results of the project to 
help the public interact and better understand the 
operations of automated driving system technologies; 
and 
‘‘(4) recommendations for improving roadway 
characteristics needed for the safe and efficient oper-
ation of automated driving system technologies with-
in the State or jurisdiction in which the project took 
place. 
‘‘(h) GUIDANCE REQUIRED.—Not later than 120 
days after the date of enactment of this section, the Sec-
retary shall issue guidance defining the term Level 3 or 
greater by considering industry best practices and stand-
ards, including the definition found within ‘Taxonomy and 
Definitions for Terms Related to Driving Automation Sys-
tems for On-Road Motor Vehicles’ published by SAE 
International on June 15, 2018 (J3016l201806), or sub-
sequent versions. 
‘‘(i) AUTOMATED DRIVING SYSTEM TECHNOLOGIES 
DEFINED.—In this section, the term ‘automated driving 
system technologies’ means the hardware and software 
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that are collectively capable of performing the entire dy-
namic driving task on a sustained basis, regardless of 
whether such capability is limited to a specific operational 
design domain.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 5 of title 23, United States Code, is amended by add-
ing at the end the following new item: 
‘‘522. Automated driving system demonstration program.’’. 
(c) PREPARING ROADWAYS FOR AUTOMATED VEHI-
CLES.—Section 133(b) of title 23, United States Code, is 
amended by adding at the end the following: 
‘‘(16) Capital and maintenance expenses for in-
frastructure improvements to ensure the proper and 
safe operation of automated driving system tech-
nologies for which a demonstration project was car-
ried out under section 522.’’. 
SEC. 5. ACCELERATED IMPLEMENTATION AND DEPLOY-
MENT OF ADVANCED DIGITAL CONSTRUC-
TION MANAGEMENT SYSTEMS. 
(a) IN GENERAL.—Section 503(c) of title 23, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(4) ACCELERATED IMPLEMENTATION AND DE-
PLOYMENT OF ADVANCED DIGITAL CONSTRUCTION 
MANAGEMENT SYSTEMS.— 
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‘‘(A) IN
GENERAL.—Not later than 6 
months after the date of enactment of this 
paragraph, the Secretary of Transportation 
shall establish and implement an advanced dig-
ital construction management system program 
under the technology and innovation deploy-
ment program established under paragraph (1) 
and implemented pursuant to paragraph (2) 
to— 
‘‘(i) deploy advanced digital construc-
tion management systems that enable the 
use of digital technologies on construction 
sites by contractors and leverage the use of 
such technologies, including state-of-the- 
art automated and connected machinery 
and optimized routing software that allows 
individuals to perform tasks faster, safer, 
more accurately, and with minimal super-
vision; 
‘‘(ii) accelerate State adoption of ad-
vanced digital construction management 
systems applied throughout the design, en-
gineering, construction, and operations 
phases of a construction project that— 
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