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year shall be expended by the State for research, de-
velopment, and technology transfer activities that—
‘‘(A) are described in subsection (a); and
‘‘(B) relate to highway, public transpor-
tation, and intermodal transportation systems.
‘‘(2) WAIVERS.—The Secretary may waive the
application of paragraph (1) with respect to a State
for a fiscal year if—
‘‘(A) the State certifies to the Secretary for
the fiscal year that total expenditures by the
State for transportation planning under sections
134 and 135 will exceed 75 percent of the funds
described in paragraph (1); and
‘‘(B) the Secretary accepts the certification
of the State.
‘‘(3) 
NONAPPLICABILITY
OF
ASSESSMENT.—
Funds expended under paragraph (1) shall not be
considered to be part of the extramural budget of the
agency for the purpose of section 9 of the Small Busi-
ness Act (15 U.S.C. 638).
‘‘(c) FEDERAL SHARE.—The Federal share of the cost
of a project carried out using funds subject to subsection
(a) shall be the share applicable under section 120(b), as
adjusted under subsection (d) of that section.
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‘‘(d) ADMINISTRATION OF SUMS.—Funds subject to
subsection (a) shall be—
‘‘(1) combined and administered by the Sec-
retary as a single fund; and
‘‘(2) available for obligation for the period de-
scribed in section 118(b)(2).
‘‘(e) ELIGIBLE USE OF STATE PLANNING AND RE-
SEARCH FUNDS.—A State, in coordination with the Sec-
retary, may obligate funds made available to carry out this
section for any purpose authorized under section 506(a).
‘‘§ 506. International highway transportation out-
reach program
‘‘(a) ESTABLISHMENT.—The Secretary may establish
an 
international 
highway 
transportation 
outreach
program—
‘‘(1) to inform the United States highway com-
munity of technological innovations in foreign coun-
tries that could significantly improve highway trans-
portation in the United States;
‘‘(2) to promote United States highway transpor-
tation expertise, goods, and services in foreign coun-
tries; and
‘‘(3) to increase transfers of United States high-
way transportation technology to foreign countries.
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‘‘(b) ACTIVITIES.—Activities carried out under the
program may include—
‘‘(1) the development, monitoring, assessment,
and dissemination in the United States of informa-
tion about highway transportation innovations in
foreign countries that could significantly improve
highway transportation in the United States;
‘‘(2) research, development, demonstration, train-
ing, and other forms of technology transfer and ex-
change;
‘‘(3) the provision to foreign countries, through
participation in trade shows, seminars, expositions,
and other similar activities, of information relating
to the technical quality of United States highway
transportation goods and services;
‘‘(4) the offering of technical services of the Fed-
eral Highway Administration that cannot be readily
obtained from private sector firms in the United
States for incorporation into the proposals of those
firms undertaking highway transportation projects
outside the United States, if the costs of the technical
services will be recovered under the terms of the
project;
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‘‘(5) the conduct of studies to assess the need for,
or feasibility of, highway transportation improve-
ments in foreign countries; and
‘‘(6) the gathering and dissemination of informa-
tion on foreign transportation markets and indus-
tries.
‘‘(c) COOPERATION.—The Secretary may carry out
this section in cooperation with any appropriate—
‘‘(1) Federal, State, or local agency;
‘‘(2) authority, association, institution, or orga-
nization;
‘‘(3) for-profit or nonprofit corporation;
‘‘(4) national or international entity;
‘‘(5) foreign country; or
‘‘(6) person.
‘‘(d) FUNDS.—
‘‘(1) CONTRIBUTIONS.—Funds available to carry
out this section shall include funds deposited by any
cooperating organization or person into a special ac-
count of the Treasury established for this purpose.
‘‘(2) ELIGIBLE USES OF FUNDS.—The funds de-
posited into the account, and other funds available to
carry out this section, shall be available to cover the
cost of any activity eligible under this section, includ-
ing the cost of—
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‘‘(A) promotional materials;
‘‘(B) travel;
‘‘(C) reception and representation expenses;
and
‘‘(D) salaries and benefits.
‘‘(3) REIMBURSEMENTS FOR SALARIES AND BEN-
EFITS.—Reimbursements for salaries and benefits of
Department of Transportation employees providing
services under this section shall be credited to the ac-
count.
‘‘(e) REPORT—For each fiscal year, the Secretary shall
submit to the Committee on Environment and Public Works
of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report that
describes the destinations and individual trip costs of inter-
national travel conducted in carrying out activities de-
scribed in this section.
‘‘§ 507. Surface transportation-environmental cooper-
ative research program
‘‘(a) IN GENERAL.—The Secretary shall establish and
carry out a surface transportation-environmental coopera-
tive research program.
‘‘(b) CONTENTS.—The program carried out under this
section may include research—
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‘‘(1) to develop more accurate models for evalu-
ating transportation control measures and transpor-
tation system designs that are appropriate for use by
State and local governments (including metropolitan
planning organizations) in designing implementation
plans to meet Federal, State, and local environmental
requirements;
‘‘(2) to improve understanding of the factors that
contribute to the demand for transportation;
‘‘(3) to develop indicators of economic, social,
and environmental performance of transportation sys-
tems to facilitate analysis of potential alternatives;
‘‘(4) to meet additional priorities as determined
by the Secretary in the strategic planning process
under section 508; and
‘‘(5) to refine, through the conduct of workshops,
symposia, and panels, and in consultation with stake-
holders (including the Department of Energy, the En-
vironmental Protection Agency, and other appro-
priate Federal and State agencies and associations)
the scope and research emphases of the program.
‘‘(c) PROGRAM
ADMINISTRATION.—The Secretary
shall—
‘‘(1) administer the program established under
this section; and
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‘‘(2) ensure, to the maximum extent practicable,
that—
‘‘(A) the best projects and researchers are se-
lected to conduct research in the priority areas
described in subsection (b)—
‘‘(i) on the basis of merit of each sub-
mitted proposal; and
‘‘(ii) through the use of open solicita-
tions and selection by a panel of appro-
priate experts;
‘‘(B) a qualified, permanent core staff with
the ability and expertise to manage a large
multiyear budget is used;
‘‘(C) the stakeholders are involved in the
governance of the program, at the executive, over-
all program, and technical levels, through the use
of expert panels and committees; and
‘‘(D) there is no duplication of research ef-
fort between the program established under this
section and the new strategic highway research
program established under section 509.
‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The Sec-
retary may make grants to, and enter into cooperative
agreements with, the National Academy of Sciences to carry
out such activities relating to the research, technology, and