143
‘‘(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; 
‘‘(C) natural gas; 
‘‘(D) liquefied petroleum gas; 
‘‘(E) hydrogen; 
‘‘(F) coal derived liquid fuels; 
‘‘(G) fuels (except alcohol) derived from bio-
logical materials; 
‘‘(H) electricity (including electricity from 
solar energy); or 
‘‘(I) any other fuel that the Secretary pre-
scribes by regulation that is not substantially pe-
troleum and that would yield substantial energy 
security and environmental benefits. 
‘‘(2) HOV FACILITY.—The term ‘HOV facility’ 
means a high occupancy vehicle facility. 
‘‘(3) LOW EMISSION AND ENERGY EFFICIENT VE-
HICLE.—The term ‘low emission and energy-efficient 
vehicle’ means a vehicle that—
‘‘(A) has been certified by the Administrator 
of the Environmental Protection Agency as meet-
ing the Tier II emission level established in regu-
144
lations 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 
‘‘(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 sec-
tion 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.’’.
145
(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 years (or 
such longer period as the State requests and the Secretary 
determines to be reasonable) after’’. 
SEC. 1209. CONGESTION PRICING PILOT PROGRAM. 
(a) ESTABLISHMENT.—Section 1012(b)(1) of the Inter-
modal 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 Trans-
portation Equity Act: A Legacy for Users and 
under which highway tolls are being collected as 
of such date of enactment.’’. 
(b) LOW-INCOME DRIVERS.—Section 1012(b)(7) of 
such Act is amended to read as follows:
146
‘‘(7) REDUCED TOLLS FOR LOW-INCOME DRIV-
ERS.—Any congestion pricing pilot project carried 
out under this subsection that involves the collection 
of highway tolls shall include a program to permit 
low-income drivers to pay a reduced toll amount.’’. 
(c) SET-ASIDE FOR PROJECTS NOT INVOLVING HIGH-
WAY 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.’’. 
(d) 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
147
(C) in the second sentence by striking ‘‘pro-
gram’’ and inserting ‘‘project’’; 
(3) in paragraph (3) by striking ‘‘(3) Revenues’’ 
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 in-
serting 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’’.
148
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 respon-
sibilities of the Secretary under this section shall 
be subject to the same procedural and substantive 
requirements as would apply if the responsibil-
ities were carried out by the Secretary. When a 
State assumes responsibilities for carrying out a 
Federal law under this section, the State assents 
to Federal jurisdiction and shall be solely re-
sponsible and solely liable for complying with 
and carrying out that law instead of the Sec-
retary. 
‘‘(B) ASSUMPTION OF RESPONSIBILITIES.—
Any responsibility of the Secretary not assumed
149
by the State in a memorandum of understanding 
shall remain a responsibility of the Secretary. 
‘‘(C) POWERS OF OTHER AGENCIES.—Noth-
ing in this section preempts or limits any power, 
jurisdiction, responsibility, or authority of an 
agency, other than the Department of Transpor-
tation, with respect to a project.’’. 
(b) ACCEPTANCE OF FEDERAL COURTS JURISDICTION; 
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 jurisdic-
tion 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 memo-
randum of understanding with a State under this sec-
tion shall include a provision authorizing the Sec-
retary to terminate the agreement if the Secretary, 
after providing an opportunity for a hearing, issues
150
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.—
151
(1) STUDY.—The Secretary shall conduct a study 
to determine the most appropriate method for opening 
the ramps for allowing motor vehicles to enter Inter-
state 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 current 
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 pro-
vided in this section. A State must submit an application 
to the Secretary in order to receive an allocation under this 
section. 
(b) SELECTION PROCESS.—
152
(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 des-
ignated as part of, the Dwight D. Eisenhower Na-
tional System of Interstate and Defense Highways 
after completion of the work described in the applica-
tion received by the Secretary and to any project that 
will be completed within 5 years of the date of the al-
location 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
153
(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 decrease 
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 pro-
vided 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.
154
(c) PERIOD OF AVAILABILITY.—Funds allocated for a 
project to a State under this section shall remain available 
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 accord-
ance with section 120(b) of title 23, United States Code. 
(e) APPLICABILITY OF TITLE 23.—Except as provided 
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 States 
to improve the safe movement of motor vehicles at or across
155
the border between the United States and Canada 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 re-
lated to international trade; 
(3) operational improvements in a border region, 
including improvements relating to electronic data 
interchange and use of telecommunications, to expe-
dite cross border motor vehicle and cargo movement; 
(4) modifications to regulatory procedures to ex-
pedite 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. 
(c) APPORTIONMENT OF FUNDS.—On October 1 of each 
fiscal year, the Secretary shall apportion among border
156
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—
(A) the total weight of incoming cargo by 
commercial trucks that pass through land border
157
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 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 avail-
able 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 defini-
tions apply: 
(1) BORDER REGION.—The term ‘‘border region’’ 
means any portion of a border State within 20 miles
158
of an international land border with Canada or Mex-
ico. 
(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 vehicle’’ 
has the meaning such term has under section 101(a) 
of title 23, United States Code. 
(5) STATE.—The term ‘‘State’’ has the meaning 
such term has in section 101(a) of such title 23. 
SEC. 1303. FREIGHT INTERMODAL CONNECTORS. 
(a) IN GENERAL.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish a freight intermodal connector program to im-
prove productivity and improve the efficiency of the 
transportation of freight, while mitigating congestion 
in the area of freight intermodal connectors. 
(2) PURPOSES.—The purposes of the program 
shall be—
(A) to facilitate and support intermodal 
freight transportation initiatives at the State
159
and local levels in order to improve freight inter-
modal 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 con-
nectors, and operational improvements for such con-
nectors (including capital investment for intelligent 
transportation systems); except that a project located 
within the boundaries of an intermodal freight facil-
ity shall only include highway infrastructure modi-
fications necessary to facilitate direct intermodal ac-
cess between the connector and the facility.
160
(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 assist-
ance under section 103(b)(6) of title 23, United States 
Code, relating to the National Highway System, 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 Trans-
portation to Congress entitled ‘‘Pulling Together: The NHS 
and its Connections to Major Intermodal Terminals’’. 
(e) APPORTIONMENT.—On October 1 of each fiscal 
year, the Secretary shall apportion among the States sums 
made available to carry out this section for such fiscal year 
as follows: 
(1) 33.3 percent in the ratio that—
(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
161
(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 avail-
able until expended and the Federal share of the cost of a 
project under this section shall be 80 percent. 
(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’’.
162
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FREIGHT
INTERMODAL
CONNECTORS.—The 
term ‘‘freight intermodal connector’’ means the road-
way that connects to an intermodal freight facility 
that carries or will carry intermodal traffic. 
(2) INTERMODAL FREIGHT FACILITY.—The term 
‘‘intermodal freight facility’’ means a port, airport, 
truck-rail terminal, and pipeline-truck terminal. 
(3) STATE.—The term ‘‘State’’ has the meaning 
such term has in section 101(a) of title 23, United 
States Code. 
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.
163
(3) Critical high-cost transportation infrastruc-
ture facilities often include multiple levels of govern-
ment, agencies, modes of transportation, and trans-
portation goals and planning processes that are not 
easily addressed or funded within existing surface 
transportation program categories. 
(4) Projects of national and regional significance 
have national and regional benefits, including im-
proving 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 necessary 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 econ-
omy. 
(b) ESTABLISHMENT
OF PROGRAM.—The Secretary 
shall establish a program to provide grants to qualified en-
tities for projects of national and regional significance.
164
(c) DEFINITIONS.—
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eligi-
ble project costs’’ means the costs of—
(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, rehabilita-
tion, and acquisition of real property (including 
land related to the project and improvements to 
land), environmental mitigation, construction 
contingencies, acquisition of equipment, and 
operational improvements. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means any surface transportation project eli-
gible 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 en-
tity’’ 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—
165
(1) $500,000,000; or 
(2) 75 percent of the amount of Federal highway 
assistance funds apportioned for the most recently 
completed fiscal year to the State in which the project 
is located. 
(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 specified 
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;
166
(B) is justified based on the project’s abil-
ity—
(i) to generate national economic bene-
fits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product; 
(ii) to reduce congestion, including im-
pacts 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.
167
(3) SELECTION CONSIDERATIONS.—In selecting a 
project under this section, the Secretary shall consider 
the extent to which the project—
(A) leverages Federal investment by encour-
aging non-Federal contributions to the project, 
including 
contributions 
from 
public-private 
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 evaluating 
a project under paragraph (2)(A), the Secretary shall 
analyze and consider the results of preliminary engi-
neering for the project. 
(5) NON-FEDERAL FINANCIAL COMMITMENT.—
(A) EVALUATION OF PROJECT.—In evalu-
ating a project under paragraph (2)(C), the Sec-
retary 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
168
(ii) each proposed non-Federal source 
of capital and operating financing is stable, 
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 subpara-
graph (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 proposed 
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 Secretary 
shall issue regulations on the manner in which the 
Secretary will evaluate and rate the projects based on 
the results of preliminary engineering, project jus-
169
tification, and the degree of non-Federal financial 
commitment, as required under this subsection. 
(7) PROJECT EVALUATION AND RATING.—A pro-
posed project may advance from preliminary engi-
neering 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 like-
lihood that the project will continue to meet such re-
quirements. In making such findings, the Secretary 
shall evaluate and rate the project as ‘‘highly rec-
ommended’’, ‘‘recommended’’, or ‘‘not recommended’’ 
based on the results of preliminary engineering, the 
project justification criteria, and the degree of non-
Federal financial commitment, as required under this 
subsection. In rating the projects, the Secretary shall 
provide, in addition to the overall project rating, in-
dividual ratings for each of the criteria 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 announcing an 
intention to obligate, for a project under this sec-
tion, an amount from future available budget
170
authority specified in law that is not more than 
the amount stipulated as the financial participa-
tion of the Secretary in the project. 
(B) NOTIFICATION.—At least 60 days before 
issuing a letter under subparagraph (A) or en-
tering into a full funding grant agreement, the 
Secretary shall notify in writing the Committee 
on Transportation and Infrastructure of the 
House of Representatives and the Committee 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 eval-
uations 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 administra-
tive commitment. 
(D) OBLIGATION OR COMMITMENT.—An ob-
ligation or administrative commitment may be 
made only when contract authority is allocated 
to a project. 
(2) FULL FUNDING GRANT AGREEMENT.—
171
(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 manage-
ment 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-
172
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 financing 
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 funding
173
authorized to carry out this section less an amount 
the Secretary reasonably estimates is necessary 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 agree-
ments 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 requirements 
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 feasibility, 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 the project is for
174
80 percent of the project cost, unless the grant recipient re-
quests a lower grant percentage. A refund or reduction of 
the remainder may be made only if a refund of a propor-
tional 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 required 
under subsection (i) the Secretary shall give equal consider-
ation 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 In-
frastructure of the House of Representatives and the 
Committee on Environment and Public Works of the 
Senate a report that includes a proposal on the allo-
cation of amounts to be made available to finance 
grants under this section. 
(2) RECOMMENDATIONS ON FUNDING.—The an-
nual report under this paragraph shall include eval-
uations and ratings, as required under subsection (f). 
The report shall also include recommendations of 
projects for funding based on the evaluations and rat-
175
ings and on existing commitments 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 avail-
able until expended and the Federal share of the cost of a 
project under this section shall be as provided in this sec-
tion. 
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.
176
(2) SELECTION
FACTORS.—In making alloca-
tions under this section, the Secretary shall consider 
the following factors: 
(A) The extent to which the project will im-
prove the safe and efficient movement of freight. 
(B) The extent to which the project provides 
positive separation of commercial trucks from 
other motor vehicle traffic. 
(C) The extent to which the project connects 
an intermodal freight facility or an inter-
national port of entry to the Dwight D. Eisen-
hower National System of Interstate and Defense 
Highways by providing limited access lanes that 
allow commercial truck traffic to enter the Inter-
state System at the posted speed limit. 
(D) The extent to which the project will re-
move truck traffic from surface streets. 
(E) The extent to which travel time is ex-
pected to be reduced as a result of the proposed 
project. 
(F) The extent of leveraging of Federal 
funds provided to carry out this section, includ-
ing—
(i) use of innovative financing;
177
(ii) combination with funding pro-
vided 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. 
(c) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall be determined in accord-
ance with section 120(b) of title 23, United States Code. 
(d) APPLICABILITY OF TITLE 23.—Except as provided 
in subsection (d), funds made available by section 
1101(a)(22) 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. 
(e) DEFINITIONS.—In this section the following defini-
tions apply: 
(1) COMMERCIAL TRUCK.—The term ‘‘commer-
cial truck’’ means a self-propelled or towed vehicle 
used on highways in commerce principally to trans-
port cargo if the vehicle has a gross vehicle weight 
rating or gross vehicle weight of at least 10,001 
pounds, whichever is greater. 
(2) STATE.—The term ‘‘State’’ has the meaning 
such term has under section 101 of title 23, United 
States Code.
178
SEC. 1306. TRUCK PARKING FACILITIES. 
(a) ESTABLISHMENT.—In cooperation with appro-
priate State, regional, and local governments, the Secretary 
shall establish a pilot program to address the shortage of 
long-term parking for commercial motor vehicles on the Na-
tional Highway System. 
(b) ALLOCATION OF FUNDS.—
(1) IN GENERAL.—The Secretary shall allocate 
funds made available to carry out this section among 
States, metropolitan planning organizations, and 
local governments. 
(2) APPLICATIONS.—To be eligible for an alloca-
tion under this section, a State, metropolitan plan-
ning organization, or local government shall submit 
to the Secretary an application at such time and con-
taining such information as the Secretary may re-
quire. 
(3) 
ELIGIBLE
PROJECTS.—Funds 
allocated 
under this subsection shall be used by the recipient for 
projects described in an application approved by the 
Secretary. Such projects shall serve the National 
Highway System and may include the following: 
(A) Constructing safety rest areas, as de-
fined in section 120(c) of title 23, United States 
Code, that include parking for commercial motor 
vehicles.
179
(B) Constructing commercial motor vehicle 
parking facilities adjacent to commercial truck 
stops and travel plazas. 
(C) Opening existing facilities to commer-
cial motor vehicle parking, including inspection 
and weigh stations and park-and-ride facilities. 
(D) Promoting the availability of publicly 
or privately provided commercial motor vehicle 
parking on the National Highway System using 
intelligent transportation systems and other 
means. 
(E) Constructing turnouts along the Na-
tional Highway System for commercial motor 
vehicles. 
(F) Making capital improvements to public 
commercial motor vehicle parking facilities cur-
rently closed on a seasonal basis to allow the fa-
cilities to remain open year-round. 
(G) Improving the geometric design of 
interchanges on the National Highway System to 
improve access to commercial motor vehicle 
parking facilities. 
(4) PRIORITY.—In allocating funds made avail-
able to carry out this section, the Secretary shall give 
priority to applicants that—
180
(A) demonstrate a severe shortage of com-
mercial motor vehicle parking capacity in the 
corridor to be addressed; 
(B) have consulted with affected State and 
local governments, community groups, private 
providers of commercial motor vehicle parking, 
and motorist and trucking organizations; and 
(C) demonstrate that their proposed projects 
are likely to have positive effects on highway 
safety, traffic congestion, or air quality. 
(c) FUNDING.—
(1) IN GENERAL.—There is authorized to be ap-
propriated from the Highway Trust Fund (other than 
the Mass Transit Account) to carry out this section 
$5,000,000 for each of fiscal years 2005 through 2009. 
(2) CONTRACT
AUTHORITY.—Funds authorized 
under this subsection shall be available for obligation 
in the same manner as if the funds were apportioned 
under chapter 1 of title 23, United States Code. 
(d) REPORT TO CONGRESS.—Not later than 5 years 
after the date of enactment of this Act, the Secretary shall 
transmit to Congress a report on the results of the pilot 
program. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project carried out using amounts made available
181
under this section shall be determined in accordance with 
sections 120(b) and 120(c) of title 23, United States Code. 
(f) APPLICABILITY
OF TITLE 23.—Notwithstanding 
any other provision of law, projects funded under this sec-
tion shall be treated as projects on a Federal-aid system 
under chapter 1 of title 23, United States Code. 
Subtitle D—Highway Safety 
SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 
(a) SAFETY IMPROVEMENT PROJECT DEFINED.—Sec-
tion 101(a)(30) of title 23, United States Code, is amended 
by inserting ‘‘installs fluorescent, yellow-green signs at pe-
destrian or bicycle crossings or school zones,’’ after ‘‘call 
boxes,’’. 
(b) OPERATION LIFESAVER.—Section 104(d)(1) of 
such title is amended—
(1) by striking ‘‘subsection (b)(3) of this section’’ 
and inserting ‘‘section 130(f)’’; and 
(2) by striking ‘‘$500,000’’ and inserting 
‘‘$600,000’’. 
(c) RAILWAY-HIGHWAY CROSSING HAZARD ELIMI-
NATION IN HIGH SPEED RAIL CORRIDORS.—
(1) IN GENERAL.—Section 104(d)(2) of such title 
is amended—
(A) in subparagraph (A) by striking 
‘‘$5,250,000’’ and inserting ‘‘$7,500,000 for each
182
of fiscal years 2004 and 2005, $10,000,000 for 
each of fiscal years 2006 and 2007, and 
$15,000,000 for each of fiscal years 2008 and 
2009’’; and 
(B) in subparagraph (E)—
(i) by striking ‘‘Not less than $250,000 
of such set-aside’’ and inserting ‘‘Of such 
set-aside, not less than $875,000 for each of 
fiscal years 2004 and 2005, $1,500,000 for 
each of fiscal years 2006 and 2007, and 
$2,750,000 for each of fiscal years 2008 and 
2009’’; and 
(ii) by striking ‘‘per fiscal year’’. 
(2) DESIGNATION OF CORRIDORS.—Of the rail 
corridors selected by the Secretary in accordance with 
section 104(d)(2) of title 23, United States Code—
(A) the Northern New England High Speed 
Rail Corridor is expanded to include the train 
routes from Boston, Massachusetts, to Albany, 
New York, and from Springfield, Massachusetts, 
to New Haven, Connecticut; and 
(B) the South Central Corridor is expanded 
to include the train route from Killeen, Texas, to 
Houston, Texas, via Bryan-College Station. 
(d) RAILWAY-HIGHWAY CROSSINGS.—
183
(1) FUNDS FOR PROTECTIVE DEVICES.—Section 
130(e) of such title is amended—
(A) by striking ‘‘At’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—At’’; and 
(B) by adding at the end the following: 
‘‘(2) SPECIAL RULE.—If a State demonstrates to 
the satisfaction of the Secretary that the State has 
met all its needs for installation of protective devices 
at railway-highway crossings, the State may use 
funds made available by this subsection for other pur-
poses by this section.’’. 
(2) APPORTIONMENT.—Section 130(f) of such 
title is amended to read as follows: 
‘‘(f) APPORTIONMENT.—
‘‘(1) FORMULA.—Fifty percent of the funds au-
thorized to be appropriated to carry out this section 
shall be apportioned to the States in accordance with 
the formula set forth in section 104(b)(3)(A), and 50 
percent of such funds shall be apportioned to the 
States in the ratio that total public railway-highway 
crossings in each State bears to the total of such cross-
ings in all States. 
‘‘(2) 
MINIMUM
APPORTIONMENT.—Notwith-
standing paragraph (1), each State shall receive a
184
minimum of 1⁄2 of 1 percent of the funds apportioned 
under paragraph (1). 
‘‘(3) FEDERAL SHARE.—The Federal share pay-
able on account of any project financed with funds 
authorized to be appropriated to carry out this sec-
tion shall be 90 percent of the cost thereof.’’. 
(3) BIENNIAL REPORT TO CONGRESS.—The third 
sentence of section 130(g) of such title is amended by 
striking ‘‘not later than April 1 of each year,’’ and 
inserting ‘‘, not later than April 1, 2006, and every 
2 years thereafter,’’. 
(4) EXPENDITURE OF FUNDS.—Section 130 of 
such title is further amended by adding at the end the 
following: 
‘‘(k) EXPENDITURE OF FUNDS.—Not more than 2 per-
cent of funds apportioned to a State to carry out this sec-
tion may be used by the State for compilation and analysis 
of data in support of activities carried out under subsection 
(g).’’. 
(e) SURFACE TRANSPORTATION PROGRAM.—
(1) IN GENERAL.—Section 133(d) of such title is 
amended—
(A) by striking paragraph (1); and
185
(B) 
by 
redesignating 
paragraphs 
(2) 
through (5) as paragraphs (1) through (4), re-
spectively; and 
(C) in paragraph (2) (as so redesignated)—
(i) in subparagraph (A) by striking 
‘‘80 percent’’ and inserting ‘‘90 percent’’; 
(ii) in subparagraph (B) by striking 
‘‘tobe’’ and inserting ‘‘to be’’; and 
(iii) in subparagraph (D) by adding a 
period at the end. 
(2) CONFORMING AMENDMENTS.—
(A) SECTION 133.—Section 133(e) is amend-
ed by striking ‘‘(d)(2)’’ and inserting ‘‘(d)(1)’’ in 
each of paragraphs (3)(B)(i), (5)(A), and (5)(B). 
(B) SECTION 126.—Section 126(b) of such 
title is amended—
(i) by striking ‘‘to the last sentence of 
section 133(d)(1) or’’; 
(ii) by striking ‘‘section 133(d)(3)’’ 
and inserting ‘‘section 133(d)(2)’’; and 
(iii) by striking ‘‘or 133(d)(2)’’. 
(f) HAZARD ELIMINATION PROGRAM.—
(1) PURPOSES.—Section 152(a)(1) of such title 
is amended—
186
(A) by striking ‘‘and’’ after ‘‘bicyclists,’’; 
and 
(B) by inserting after ‘‘pedestrians,’’ the fol-
lowing: ‘‘and the disabled, identify roadway safe-
ty improvement needs for such locations, sec-
tions, and elements,’’. 
(2) HAZARDS.—Section 152(a)(2)(A) of such 
title is amended by inserting ‘‘the disabled,’’ after 
‘‘pedestrians,’’. 
(3) APPROVAL OF PROJECTS.—Section 152(b) of 
such title is amended by inserting before the period at 
the end the following: ‘‘that reduces the likelihood of 
crashes involving road departures, intersections, pe-
destrians, the disabled, bicyclists, older drivers, or 
construction work zones’’. 
(4) EXPENDITURE OF FUNDS.—Section 152(c) of 
such title is amended—
(A) in paragraph (2) by striking ‘‘or’’ at 
the end; 
(B) in paragraph (3) by striking the period 
at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(4) police assistance for traffic and speed man-
agement in construction work zones;
187
‘‘(5) installation of barriers between construction 
work zones and traffic lanes for the safety of motorists 
and workers; 
‘‘(6) installation of protective devices at railway-
highway crossings; and 
‘‘(7) compilation and analysis of data under 
subsections (f) and (g) if the funds used for this pur-
pose by a State do not exceed 2 percent of the amount 
apportioned to such State to carry out this section.’’. 
(5) APPORTIONMENT.—Section 152(d) of such 
title is amended to read as follows: 
‘‘(d) APPORTIONMENT.—
‘‘(1) FORMULA.—Funds authorized to be appro-
priated to carry out this section shall be apportioned 
to the States in accordance with the formula set forth 
in section 104(b)(3)(A). 
‘‘(2) 
MINIMUM
APPORTIONMENT.—Notwith-
standing paragraph (1), each State shall receive a 
minimum of 1⁄2 of 1 percent of the funds apportioned 
under paragraph (1). 
‘‘(3) FEDERAL SHARE.—The Federal share pay-
able on account of any project financed with funds 
authorized to be appropriated to carry out this sec-
tion shall be 90 percent of the cost thereof.’’. 
(6) BIENNIAL REPORT TO CONGRESS.—
188
(A) IN GENERAL.—Section 152 of such title 
is amended by adding at the end the following: 
‘‘(i) BIENNIAL REPORT TO CONGRESS.—Not later than 
2 years after the date of enactment of this subsection, and 
every 2 years thereafter, the Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Environ-
ment and Public Works of the Senate a report on the results 
of the program under this section. The report shall include, 
at a minimum, the following: 
‘‘(1) A summary of State projects completed 
under this section categorized by the types of hazards 
and a statement of the cost of such projects. 
‘‘(2) An analysis of the effectiveness of such cat-
egories of projects in reducing the number and sever-
ity of crashes at high hazard locations. 
‘‘(3) An assessment of the adequacy of authorized 
funding for the program and State use of such fund-
ing to address the national need for such projects. 
‘‘(4) Recommendations for funding and program 
improvements to reduce the number of high hazard lo-
cations. 
‘‘(5) An analysis and evaluation of each State 
program, an identification of any State found not to 
be in compliance with the schedule of improvements
189
required by subsection (a), and recommendations for 
future implementation of the hazard elimination pro-
gram.’’. 
(B) 
CONFORMING
AMENDMENT.—Section 
152(g) of such title is amended by striking the 
third sentence through the last sentence. 
(g) EFFECTIVE DATE.—The amendments made by sub-
sections (b)(1), (d), (e), and (f) shall take effect on Sep-
tember 30, 2005. 
SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW 
OF VEHICULAR TRAFFIC. 
Not later than 1 year after the date of enactment of 
this Act, the Secretary shall issue regulations to decrease 
the likelihood of worker injury and maintain the free flow 
of vehicular traffic by requiring workers whose duties place 
them on or in close proximity to a Federal-aid highway 
(as defined in section 101 of title 23, United States Code) 
to wear high visibility garments. Such regulations may also 
require such other worker-safety measures for workers with 
those duties as the Secretary determines appropriate. 
SEC. 1403. HIGH RISK RURAL ROAD SAFETY IMPROVEMENT 
PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
and implement a high risk rural road safety improvement 
program in accordance with this section.
190
(b) ELIGIBLE PROJECTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), a State may obligate funds apportioned to 
it under this section only for construction and oper-
ational improvement projects on high risk rural roads 
and only if the primary purpose of the project is to 
improve highway safety on a high risk rural road. 
(2) SPECIAL RULE.—A State may use funds ap-
portioned to it under this section for any project ap-
proved by the Secretary under section 152 of title 23, 
United States Code, if the State certifies to the Sec-
retary that it has no projects described in paragraph 
(1). 
(c) STATE ALLOCATION SYSTEM.—Each State shall es-
tablish a system for allocating funds apportioned to it 
under this section among projects eligible for assistance 
under this section that have the highest benefits to highway 
safety. Such system may include a safety management sys-
tem established by the State under section 303 of title 23, 
United States Code, or a survey established pursuant to sec-
tion 152(a) of such title. 
(d) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among States 
sums authorized to be appropriated to carry out this section 
for such fiscal year as follows: