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provement projects, elimination of high accident lo-
cations, protection or elimination of at-grade rail-
way-highway crossings, collection of safety informa-
tion, transportation planning, bridge inspections, de-
velopment and operation of safety management sys-
tems, highway safety education programs, and other 
eligible safety activities authorized in chapter 4 of 
this title. 
‘‘(2) CONTRACTS.—In carrying out paragraph 
(1), the Secretary and the Secretary of the appro-
priate Federal land management agency, as appro-
priate, may enter into contracts or agreements with 
a State, subdivision of a State, or Indian tribe. 
‘‘(3) EXCEPTION.—Funds allocated to the Bu-
reau of Reclamation for the purposes described in 
this subsection are exempted from the cost-share re-
quirements of Public Law 89–72, The Federal 
Water Recreation Act.’’. 
(g) RECREATION ROADS.— 
(1) AUTHORIZATIONS.—Section 201 of such 
title is amended by striking ‘‘public lands highways’’ 
and inserting ‘‘recreation roads’’. 
(2) ALLOCATIONS.—Section 202 of such title, 
as amended by this section, is further amended by 
adding at the end the following:
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‘‘(g) RECREATION ROADS.—On October 1 of each fis-
cal year, the Secretary, after making the transfer provided 
for in subsection 204(i) of this title, shall allocate the 
sums authorized to be appropriated for such fiscal year 
for recreation roads as follows: 6 percent to the Bureau 
of Reclamation, 6 percent to the U.S. Army Corps of En-
gineers, 10 percent to the Bureau of Land Management, 
10 percent to the Military Traffic Management Command, 
and 68 percent to the Forest Service. Recreation road 
funds shall be allocated to projects and activities according 
to the relative needs of each area served by these roads 
as indicated in the approved transportation improvement 
programs for each agency. The Secretary, from time to 
time, may adjust the percentage of recreation road funds 
allocated to the Federal agencies listed above based on the 
outputs of agency management systems, other need anal-
yses, or studies, and the use of previously allocated recre-
ation road funds.’’. 
(3) AVAILABILITY OF FUNDS.—Section 203 of 
such title is amended by striking ‘‘public lands high-
ways’’ and inserting ‘‘recreation roads’’ at each 
place it appears. 
(4) USE OF FUNDING.—Section 204 of such 
title, as amended by this section, is further amended 
by adding at the end the following:
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‘‘(m) RECREATION ROADS.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, funds made available for 
recreation roads shall be used by the Secretary and 
the Secretary of the appropriate Federal land man-
agement agency only to pay the cost of—
‘‘(A) maintenance or improvements of ex-
isting recreation roads; 
‘‘(B) maintenance and improvements of eli-
gible projects described in paragraphs (1), (2), 
(3), (5), and (6) of subsection (h) that are lo-
cated in or adjacent to Federal land areas 
under the jurisdiction of the Departments of 
Agriculture, Defense, or the Interior; 
‘‘(C) transportation planning and adminis-
trative costs associated with such maintenance 
and improvements; and 
‘‘(D) the non-Federal share of the cost of 
any project funded under this title or chapter 
53 of title 49 that provides access to or within 
Federal land areas under the jurisdiction of the 
Departments of Agriculture, Defense, or the In-
terior. 
‘‘(2) CONTRACTS.—In carrying out paragraph 
(1), the Secretary and the Secretary of the appro-
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priate Federal land management agency, as appro-
priate, may enter into contracts or agreements with 
a State or civil subdivision of a State or Indian tribe 
as is determined advisable. 
‘‘(3) NEW ROADS.—No funds available under 
this section shall be used to pay the cost of the de-
sign or construction of new recreation roads. 
‘‘(4) COMPLIANCE
WITH
OTHER
ENVIRON-
MENTAL
LAWS.—Maintenance and improvement 
projects which are funded under this subsection and 
are consistent with or have been identified in a land 
use plan for the Federal area do not require any ad-
ditional environmental reviews or assessments under 
the National Environmental Policy Act if the Fed-
eral agency that promulgated the land use plan ana-
lyzed the specific proposal under the National Envi-
ronmental Policy Act and there are no significant 
changes to the proposal bearing on environmental 
concerns and no significant new information. 
‘‘(5) EXCEPTION.—Funds allocated to the Bu-
reau of Reclamation for the purposes described in 
this subsection are exempted from the cost-share re-
quirements of Public Law 89–72, The Federal 
Water Recreation Act.’’. 
(h) CONFORMING AMENDMENTS.—
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(1) Sections 120(e) and 125(e) of title 23, 
United States Code, are amended by inserting 
‘‘recreation roads,’’ after ‘‘public lands highways,’’ 
each place the words appear. 
(2) Sections 120(e), 125(e), 201, 202(a), 203, 
section 205 in the heading and in subsections (a) 
and (d), and the analysis for chapter 2 of such title 
are amended by striking ‘‘forest development roads’’ 
and inserting ‘‘National Forest System roads’’ each 
place the words appear. 
(3) Section 204(a)(1) is amended by striking 
‘‘public lands highways’’ and inserting ‘‘recreation 
roads, forest highways’’, section 204(b) is amended 
by striking ‘‘public lands highways’’ and inserting 
‘‘recreation roads’’, and section 204(i) is amended 
by striking ‘‘public lands highways’’ and inserting 
‘‘recreation roads and forest highways’’ each place 
the words appear. 
(4) Section 217(c) is amended by striking ‘‘pub-
lic lands highways’’ and inserting ‘‘refuge roads’’. 
SEC. 1805. APPALACHIAN DEVELOPMENT HIGHWAY SYS-
TEM. 
(a) APPORTIONMENT.—The Secretary shall appor-
tion funds made available by section 1101(a)(7) of this 
Act for fiscal years 2004 through 2009 among the States
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based on the latest available cost to complete estimate for 
the Appalachian development highway system under sec-
tion 201 of the Appalachian Regional Development Act 
of 1965 prepared by the Appalachian Regional Commis-
sion. Such funds shall be available to construct highways 
and access roads under section 201 of the Appalachian 
Regional Development Act of 1965. 
(b) APPLICABILITY OF TITLE 23.—Funds authorized 
by section 1101(a)(7) of this Act for the Appalachian de-
velopment highway system shall be available for obligation 
in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code, except 
that the Federal share of the cost of any project under 
this section shall be determined in accordance with such 
section 201 and such funds shall remain available until 
expended. 
(c) USE OF TOLL CREDITS.—Section 120(j)(1) of 
title 23, United States Code is amended by adding ‘‘and 
the Appalachian development highway system program 
under section 201 of the Appalachian Regional Develop-
ment Act of 1965’’ following ‘‘(other than the emergency 
relief program authorized by section 125’’. 
SEC. 1806. MULTI-STATE CORRIDOR PLANNING PROGRAM. 
(a) ESTABLISHMENT AND PURPOSE.—The Secretary 
shall establish and implement a program to support and
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encourage multi-state transportation planning, provide for 
streamlined transportation project development, and facili-
tate transportation decision-making. 
(b) ELIGIBLE RECIPIENTS.—State transportation de-
partments and metropolitan planning organizations are el-
igible to receive and administer funds provided under this 
program. 
(c) ELIGIBLE
ACTIVITIES.—The Secretary shall 
make allocations under this program for multi-state high-
way and multi-state multi-modal planning studies. 
(d) OTHER PROVISIONS REGARDING ELIGIBILITY.—
All studies funded under this program shall be consistent 
with the continuing, cooperative, and comprehensive plan-
ning processes required by sections 134 and 135 of title 
23, United States Code. 
(e) SELECTION CRITERIA.—The Secretary shall se-
lect projects based on—
(1) the existence and significance of signed and 
binding multi-jurisdictional agreements; 
(2) endorsement of the study by elected State 
and local representatives; 
(3) prospects for early completion of the study; 
and 
(4) whether the projects to be studied are lo-
cated on corridors identified by section 1105(c) of
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the Intermodal Surface Transportation Efficiency 
Act of 1991, as amended (Public Law 102–240; 105 
Stat. 2032). 
(f) PROGRAM PRIORITIES.—In administering the pro-
gram, the Secretary shall—
(1) encourage and enable States and other ju-
risdictions to work together to develop plans for 
multi-modal and multi-jurisdictional transportation 
decision-making; and 
(2) give priority to studies that emphasize 
multi-modal planning, including planning for oper-
ational improvements that increase mobility, freight
productivity, access to marine ports, safety, and se-
curity while enhancing the environment. 
(g) FEDERAL SHARE.—The Federal share payable, 
using funds from all Federal sources, for any study carried 
out under this section shall not exceed 80 percent of the 
total cost of such study, except that the share of funds 
from the Highway Trust Fund (other than the Mass Tran-
sit Account) shall not exceed 50 percent of the total cost 
of such study. 
(h) APPLICABILITY OF TITLE 23 U.S.C.—Funds au-
thorized to be appropriated under section 1101(a)(10) of 
this Act to carry out this section shall be available for obli-
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gation in the same manner as if such funds were appor-
tioned under chapter 1 of title 23, United States Code. 
SEC. 1807. BORDER PLANNING, OPERATIONS, AND TECH-
NOLOGY PROGRAM. 
(a) ESTABLISHMENT AND PURPOSE.—The Secretary 
shall establish and implement a program to support co-
ordination and improvement in bi-national transportation 
planning, operations, efficiency, information exchange, 
safety, and security for the United States borders with 
Canada and Mexico. 
(b) ELIGIBLE RECIPIENTS.—State transportation de-
partments and metropolitan planning organizations at or 
near an international land border in the States of Alaska, 
Arizona, California, Idaho, Maine, Michigan, Minnesota, 
Montana, New Hampshire, New Mexico, New York, North 
Dakota, Texas, Vermont and Washington, are eligible to 
receive and administer funds allocated under this pro-
gram. 
(c) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—The Secretary shall make al-
locations under the program established in this sec-
tion for activities at or near international land bor-
ders in the States listed in subsection (b). 
(2) SPECIFIC ACTIVITIES.—The activities eligi-
ble for funding under this program are—
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(A) highway and multi-modal planning or 
environmental studies; 
(B) cross-border Port of Entry and safety 
inspection improvements, including operational 
enhancements and technology applications; 
(C) technology and information exchange 
activities; and 
(D) right-of-way acquisition, design, and 
construction, where needed to add the enhance-
ments or applications described in subpara-
graphs (B) and (C), or to decrease air pollution 
emissions from vehicles or inspection facilities 
at border crossings. 
(d) OTHER PROVISIONS REGARDING ELIGIBILITY.—
All studies and projects funded under this program shall 
be consistent with the continuing, cooperative, and com-
prehensive planning processes required by sections 134 
and 135 of title 23, United States Code. All regionally 
significant projects that are part of such applications must 
be on the transportation plans and program required by 
sections 134 and 135 of title 23, United States Code. 
(e) SELECTION CRITERIA.—The Secretary shall se-
lect projects based on—
(1) expected benefits, including air quality ben-
efits, of the project in relation to its costs;
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(2) prospects for early completion of the study 
or project; 
(3) endorsement of the project by formally con-
stituted bi-nationalorganizations with both Federal 
and State or provincial representation; 
(4) the existence and significance of signed and 
binding multi-jurisdictional agreements; 
(5) contributions of other title 23 funds and 
non-title 23 funds above the minimum required; and 
(6) the extent to which the project benefits are 
multi-modal. 
(f) PROGRAM PRIORITIES.—In administering the pro-
gram, the Secretary shall emphasize multi-modal plan-
ning; infrastructure improvements; and operational im-
provements that increase safety, security, freight move-
ment, or highway access to rail, marine, and air services 
while enhancing the environment. 
(g) FEDERAL SHARE.—The Federal share payable on 
account of any project carried out under this section shall 
not exceed 80 percent of the total cost of such project. 
(h) APPLICABILITY OF TITLE 23 U.S.C.—Funds au-
thorized to be appropriated under section 1101(1)(11) of 
this Act to carry out this section shall be available for obli-
gation in the same manner as if such funds were appor-
tioned under chapter 1 of title 23, United States Code.
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(i) ALLOCATION OF FUNDS.—No individual project 
whose scope of work is limited to information exchange 
shall receive an allocation greater than $500,000 in a sin-
gle year. 
(j) PROJECTS IN CANADA OR MEXICO.—Projects in 
Canada or Mexico proposed by one or more border States 
that directly and predominantly facilitate cross border ve-
hicle and commercial cargo movements at the inter-
national gateways or ports of entry into the border re-
gion(s) of such State(s), may be constructed using funds 
allocated under this program provided that, prior to the 
obligation of such funds, Canada or Mexico, or the polit-
ical subdivision thereof responsible for the operation of the 
facility to be constructed, has provided assurances satis-
factory to the Secretary that any facility constructed 
under this subsection will be constructed to standards 
equivalent to those in the United States and properly 
maintained and used over the useful life of the facility for 
the purpose for which the Secretary allocated funds to 
such project. 
(k) SET-ASIDE.—The Secretary shall set-aside 
$47,000,000 of the funds authorized for fiscal year 2004 
under section 1101(a)(11) of this Act for construction of 
State border safety inspection facilities in the States of 
Arizona, California, New Mexico, and Texas.
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(l) TRANSFER OF FUNDS TO THE GENERAL SERV-
ICES ADMINISTRATION.—
(1) STATE FUNDS.—At the request of a State, 
funds allocated under this section may be trans-
ferred to the General Services Administration for the 
purpose of funding a specific project or projects if 
the Secretary determines, after consultation with the 
State transportation department as appropriate, that 
the General Services Administration should carry 
out the project or projects and the General Services 
Administration agrees to accept the transfer of 
funds and to administer those funds. The State shall 
provide the 20 percent non-Federal share of the 
project cost, as required under subsection (g) of this 
section, directly to the General Services Administra-
tion. Funds so transferred or provided shall not be 
deemed to be an augmentation of the General Serv-
ices Administration’s appropriations and shall be ad-
ministered under that agency’s procedures, except 
the transferred funds shall be available for obligation 
in the same manner as if such funds were appor-
tioned under chapter 1 of title 23, United States 
Code. Obligation authority shall be transferred to 
the General Services Administration in the same
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manner and amount as the allocated funds trans-
ferred for the projects. 
(2) 
DIRECT
TRANSFER
OF
AUTHORIZED 
FUNDS.—In addition to allocations to States and 
metropolitan planning organizations as provided in 
subsection (b), the Secretary may transfer funds 
made available to carry out this section to the Gen-
eral Services Administration for construction of 
transportation infrastructure projects at or near the 
border in the States identified in subsection (b), if 
the Secretary determines that such transfer is nec-
essary to effectively carry out the purposes of this 
program and the General Services Administration 
agrees to accept the transfer of funds and to admin-
ister those funds. Funds so transferred shall not be 
deemed to be an augmentation of the General Serv-
ices Administration’s appropriations and shall be ad-
ministered under that agency’s procedures, except 
the transferred funds shall be available for obligation 
in the same manner as if such funds were appor-
tioned under chapter 1 of title 23, United States 
Code. Section 120 of title 23, United States Code, 
shall not apply to funds so transferred. Obligation 
authority shall be transferred to the General Serv-
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ices Administration in the same manner and amount 
as the funds transferred. 
SEC. 1808. TERRITORIAL HIGHWAY PROGRAM AMEND-
MENTS. 
(a) DEFINITIONS.—Section 101(a) of title 23, United 
States Code, as amended by this Act, is further amend-
ed—
(1) by redesignating paragraphs (36) through 
(38) as paragraphs (37) through (39) respectively, 
and 
(2) by adding the following new paragraph after 
paragraph (35): 
‘‘(36) TERRITORIAL
HIGHWAY
SYSTEM.—The 
term ‘territorial highway system’ means the system 
of arterial highways, collector roads, and necessary 
inter-island connectors in the Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the 
Northern Mariana Islands that have been designated 
by the Governor and approved by the Secretary as 
provided in section 215 of this title.’’. 
(b) FUNDING.—Section 104(b)(1)(A) of title 23, 
United States Code, is amended by striking ‘‘to the Virgin 
Islands, Guam, American Samoa, and the Commonwealth 
of Northern Mariana Islands’’ and inserting ‘‘for the terri-
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torial highway program authorized under section 215 of 
this title’’. 
(c) ELIGIBLE PROJECTS.—Section 103(b)(6)(P) of 
title 23, United States Code, is amended to read as fol-
lows: 
‘‘(P) Projects eligible for assistance under 
the territorial highway program as provided in 
section 215 of this title.’’. 
(d) TERRITORIAL HIGHWAY PROGRAM.—Chapter 2 
of title 23, United States Code, is amended by striking 
section 215 and inserting the following: 
‘‘§ 215. Territorial highway program 
‘‘(a) IN GENERAL.—Recognizing the mutual benefits 
that will accrue to the Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern Mariana 
Islands, and to the United States from the improvement 
of highways in such territories of the United States, the 
Secretary is authorized to assist each such territorial gov-
ernment in a program for the construction and improve-
ment of a system of arterial and collector highways, and 
necessary inter-island connectors designated by the Gov-
ernor of such territory and approved by the Secretary. 
Federal financial assistance shall be granted under this 
section in accordance with section 120(h) of this title.
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‘‘(b) TECHNICAL ASSISTANCE.—In order to continue 
a long-range highway development program, the Secretary 
is authorized to provide technical assistance to the terri-
torial governments to enable them to, on a continuing 
basis, engage in highway planning, conduct environmental 
evaluations, administer right-of-way acquisition and relo-
cation assistance programs, and design, construct, oper-
ate, and maintain a system of arterial and collector high-
ways, including necessary inter-island connectors. The 
technical assistance to be provided and the terms for shar-
ing information among the territories shall be set forth 
in the agreement required by subsection (d) of this section. 
‘‘(c) APPLICABILITY OF CHAPTER 1.—The provisions 
of chapter 1 of this title (other than provisions related to 
the apportionment and allocation of funds) shall apply to 
funds authorized to be appropriated for the territorial 
highway program, except as determined by the Secretary 
to be inconsistent with the needs of the territories and the 
intent of the territorial highway program. The specific sec-
tions of chapter 1 that are applicable to each territory and 
the extent of their applicability shall be identified in the 
agreement provided for in subsection (d) of this section. 
‘‘(d) AGREEMENT.—
‘‘(1) Except as provided in paragraph (3) of 
this subsection, no part of the appropriations au-
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thorized for the territorial highway program shall be 
available for obligation or expenditure with respect 
to any territory until the Governor enters into a new 
agreement with the Secretary, within 12 months 
after the effective date of this Act, providing that 
the government of such territory shall—
‘‘(A) implement the territorial highway 
program in accordance with the appropriate 
provisions of chapter 1 of this title, as provided 
for in subsection (c) of this section; 
‘‘(B) design and construct a system of ar-
terial and collector highways, including nec-
essary inter-island connectors, built in accord-
ance with standards appropriate for each terri-
tory and approved by the Secretary; 
‘‘(C) provide for the maintenance of facili-
ties constructed or operated under provisions of 
this section in a condition to adequately serve 
the needs of present and future traffic; and 
‘‘(D) implement standards for traffic oper-
ations and uniform traffic control devices that 
are approved by the Secretary. 
‘‘(2) The new agreement required by paragraph 
(1) of this subsection also shall specify the kind of 
technical assistance to be provided, include appro-
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priate provisions regarding information sharing 
among the territories, and delineate the oversight 
role and responsibilities of the territories and the 
Secretary. The agreement shall be re-evaluated every 
two years and modified as appropriate. 
‘‘(3) Agreements in effect on the effective date 
of this Act shall continue in force until replaced, as 
required by paragraph (1) of this subsection, and
appropriations authorized for the program shall be 
available for obligation or expenditure while the 
agreements are in place. 
‘‘(e) PERMISSIBLE USES OF FUNDS.—
‘‘(1) Funds made available for the territorial 
highway program may be used only for—
‘‘(A) eligible surface transportation pro-
gram projects described in section 133(b) of 
this title; 
‘‘(B) cost effective preventive maintenance 
consistent with the requirements of section 116 
of this title; 
‘‘(C) ferry boats, terminal facilities, and 
approaches, as provided for in section 129(b) 
and (c) of this title;
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‘‘(D) engineering and economic surveys 
and investigations for the planning of future 
highway programs and the financing thereof; 
‘‘(E) studies of the economy, safety, and 
convenience of highway usage and the desirable 
regulation and equitable taxation thereof; and 
‘‘(F) research and development, necessary 
in connection with the planning, design, and 
maintenance of the highway system, and the 
regulation and taxation of their use. 
‘‘(2) None of the appropriations authorized for 
the territorial highway program shall be obligated or 
expended for routine maintenance. 
‘‘(f) LOCATION OF PROJECTS.—Except as provided 
in subsection (b)(1) of section 133 of this title, territorial 
highway projects (other than those described in subsection 
(b)(3) and (4) of section 133 of this title) may not be 
undertaken on roads functionally classified as local.’’. 
(h) CONFORMING AMENDMENTS.—The analysis of 
chapter 2 of title 23 is amended by revising the item relat-
ing to section 215 to read as follows:
‘‘215. Territorial highway program.’’.
SEC. 1809. FUTURE INTERSTATE SYSTEM ROUTES. 
(a) WRITTEN AGREEMENT
OF STATES.—Section 
103(c)(4)(B)(ii) of title 23, United States Code, is amend-
ed by striking ‘‘12’’ and inserting ‘‘25’’.
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(b) 
REMOVAL
OF
DESIGNATION.—Section 
103(c)(4)(B)(iii)(I) of such title is amended—
(1) by striking ‘‘in the agreement between the 
Secretary and the State or States’’; and 
(2) by adding at the end the following: ‘‘An 
agreement entered into under clause (ii) prior to the 
enactment of the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003 shall be 
deemed to include the 25 year time limitation, not-
withstanding an earlier construction completion date 
in that agreement.’’. 
SEC. 1810. DONATIONS AND CREDITS. 
Section 323 of title 23, United States Code, is 
amended by—
(1) inserting ‘‘or a local government from offer-
ing to donate funds, materials or services performed 
by local government employees,’’ after ‘‘services’’ in 
the first sentence of subsection (c); and 
(2) striking subsection (e). 
SEC. 1811. DISADVANTAGED BUSINESS ENTERPRISES. 
(a) GENERAL RULE.—Except to the extent that the 
Secretary determines otherwise, not less than 10 percent 
of the amounts made available for any program under ti-
tles I, III, and V of this Act shall be expended with small
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business concerns owned and controlled by socially and 
economically disadvantaged individuals. 
(b) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning such term 
has under section 3 of the Small Business Act (15 
U.S.C. 632); except that such term shall not include 
any concern or group of concerns controlled by the 
same socially and economically disadvantaged indi-
vidual or individuals which has average annual gross 
receipts over the preceding 3 fiscal years in excess 
of $17,420,000, as adjusted by the Secretary for in-
flation. 
(2) SOCIALLY AND ECONOMICALLY DISADVAN-
TAGED INDIVIDUALS.—The term ‘‘socially and eco-
nomically disadvantaged individuals’’ has the mean-
ing such term has under section 8(d) of the Small 
Business Act (15 U.S.C. 637(d)) and relevant sub-
contracting regulations promulgated pursuant there-
to; except that women shall be presumed to be so-
cially and economically disadvantaged individuals for 
purposes of this section. 
(c) ANNUAL LISTING OF DISADVANTAGED BUSINESS 
ENTERPRISES.—Each State shall annually survey and
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compile a list of the small business concerns referred to 
in subsection (a) and the location of such concerns in the 
State and notify the Secretary, in writing, of the percent-
age of such concerns which are controlled by women, by 
socially and economically disadvantaged individuals (other 
than women), and by individuals who are women and are 
otherwise socially and economically disadvantaged individ-
uals. 
(d) UNIFORM CERTIFICATION.—The Secretary shall 
establish minimum uniform criteria for State governments 
to use in certifying whether a concern qualifies for pur-
poses of this subsection. Such minimum uniform criteria 
shall include, but not be limited to, on-site visits, personal 
interviews, licenses, analysis of stock ownership, listing of 
equipment, analysis of bonding capacity, listing of work 
completed, resume of principal owners, financial capacity, 
and type of work preferred. 
(e) COMPLIANCE WITH COURT ORDERS.—Nothing in 
this section limits the eligibility of an entity or person to 
receive funds made available under titles I, III, and V of 
this Act, if the entity or person is prevented, in whole or 
in part, from complying with subsection (a) because a 
Federal court issues a final order in which the court finds 
that the requirement of subsection (a), or the program es-
tablished under subsection (a), is unconstitutional.
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SEC. 1812. HIGHWAY BRIDGE PROGRAM. 
(a) PROGRAM NAME.—Section 144 of title 23, United 
States Code, is amended in the section heading by striking 
‘‘replacement and rehabilitation’’. 
(b) IN GENERAL.—Section 144(a) of such title is 
amended to read as follows: 
‘‘(a) Congress hereby finds and declares it to be in 
the vital interest of the Nation that a highway bridge pro-
gram be established to enable the several States to im-
prove the condition of their bridges through replacement, 
rehabilitation, and systematic preventative maintenance 
on highway bridges over waterways, other topographical 
barriers, other highways, or railroads when the States and 
the Secretary find that a bridge is unsafe because of struc-
tural deficiencies, physical deterioration, or functional ob-
solescence.’’. 
(c) SCOUR COUNTERMEASURES.—Section 144(d) of 
such title is amended to read as follows: 
‘‘(d) Whenever any State or States make application 
to the Secretary for assistance in replacing or rehabili-
tating a highway bridge which the priority system estab-
lished under subsections (b) and (c) of this section shows 
to be eligible, the Secretary may approve Federal partici-
pation in replacing such bridge with a comparable facility 
or in rehabilitating such bridge. Whenever any State 
makes application to the Secretary for assistance in paint-
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ing, seismic retrofit, or preventative maintenance of, or in-
stalling scour countermeasures or applying calcium mag-
nesium acetate, sodium acetate/formate, or other environ-
mentally acceptable, minimally corrosive anti-icing and de-
icing compositions to, the structure of a highway bridge, 
the Secretary may approve Federal participation in the 
painting, seismic retrofit, or preventative maintenance of, 
or installation of scour countermeasures or application of 
acetate or sodium acetate/formate or such anti-icing or de-
icing composition to, such structure. The Secretary shall 
determine the eligibility of highway bridges for replace-
ment or rehabilitation for each State based upon the un-
safe highway bridges in such State, except that a State 
may carry out a project for preventative maintenance on 
a bridge, seismic retrofit of a bridge, or installing scour 
countermeasures to a bridge under this section without re-
gard to whether the bridge is eligible for replacement or 
rehabilitation under this section.’’. 
(d) APPORTIONMENT FORMULA.—Section 144(e) of 
such title is amended—
(1) in the third sentence by striking ‘‘square 
footage’’ and inserting ‘‘area’’; 
(2) in the fourth sentence by striking ‘‘by the 
total cost of any highway bridges constructed under 
subsection (m) in such State, relating to replacement
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of destroyed bridges and ferryboat services, and,’’ 
and by striking ‘‘1997’’ and inserting ‘‘2003’’; and 
(3) by striking ‘‘the Federal-aid primary sys-
tem’’ and inserting ‘‘Federal-aid highways’’. 
(e) DISCRETIONARY
BRIDGE
PROGRAM.—Section 
144(g) of such title is amended—
(1) by striking ‘‘SET ASIDES.’’ in the heading 
of (g) and all that follows through paragraph (2)(B); 
(2) by striking ‘‘(3)’’ and redesignating para-
graph (3) as subsection (g); and 
(3) in subsection (g), as redesignated, by—
(A) striking ‘‘nor more than 35 percent’’; 
(B) striking ‘‘1987’’ and inserting ‘‘2004’’; 
(C) striking ‘‘2003’’ and inserting ‘‘2009’’; 
and 
(D) striking ‘‘paint’’ and inserting ‘‘per-
form systematic preventative maintenance’’. 
(f) INVENTORIES AND REPORTS.—Section 144(i) of 
such title is amended— 
(1) in paragraph (3), by striking ‘‘and’’; 
(2) in paragraph (4), by striking ‘‘section.’’ and 
inserting ‘‘section; and’’; and 
(3) after paragraph (4), by striking ‘‘Such re-
ports shall be submitted to such committees bienni-
ally at the same time as the report required by sec-
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tion 307(f)(1) of this title is submitted to Con-
gress.’’ and inserting the following: 
‘‘(5) submit reports required by this subsection 
to such committees biennially at the same time as 
the report required by section 502(g) of this title.’’. 
(g) 
OFF-SYSTEM
BRIDGE
PROGRAM.—Section 
144(n) of such title is amended by inserting ‘‘general engi-
neering’’ between ‘‘all’’ and ‘‘standards’’. 
(h) HISTORIC BRIDGE PROGRAM.—Section 144(o) of 
such title is amended— 
(1) in paragraph (3), by striking ‘‘title (includ-
ing this section)’’ and inserting ‘‘section’’ and by in-
serting ‘‘200 percent of’’ after ‘‘shall not exceed’’; 
and 
(2) in paragraph (4), by inserting ‘‘200 percent 
of’’ after ‘‘not to exceed’’, and by striking ‘‘title’’ at 
the end of the paragraph and inserting ‘‘section’’. 
(i) WATER RESOURCES PROJECTS.—Section 144 of 
such title is further amended by adding at the end the 
following—
‘‘(r) Notwithstanding any other provision of law, any 
bridge funded under this title shall not be considered a 
‘water resources project’ as that term is used in the Wild 
and Scenic Rivers Act (16 U.S.C. 1271–1287).’’.
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(j) CONFORMING AMENDMENT.—The analysis for 
chapter 1 of title 23 is amended in the item relating to 
section 144 by striking ‘‘replacement and rehabilitation’’. 
SEC. 1813. DESIGN–BUILD. 
Section 112(b)(3) of title 23, United States Code, is 
amended by striking subparagraph (C) and inserting the 
following in its place: 
‘‘(C) QUALIFIED
PROJECTS.—A qualified 
project is a project under this chapter for which 
the Secretary has approved the use of design-
build contracting under criteria specified in reg-
ulations issued by the Secretary.’’. 
SEC. 1814. INTERNATIONAL FERRIES. 
Section 129(c)(5) of title 23, United States Code, is 
amended—
(1) by striking ‘‘and’’ the first place it appears 
in the first sentence, and inserting a comma; 
(2) by adding ‘‘, and the islands that comprise 
a territory of the United States’’ after ‘‘Puerto 
Rico’’ in the first sentence; and 
(3) by adding ‘‘operations between the islands 
which comprise a territory of the United States,’’ 
after ‘‘Puerto Rico,’’ in the second sentence.
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SEC. 1815. ASSUMPTION OF RESPONSIBILITY FOR TRANS-
PORTATION 
ENHANCEMENTS, 
REC-
REATIONAL TRAILS, AND TRANSPORTATION 
AND COMMUNITY AND SYSTEM PRESERVA-
TION PROGRAM PROJECTS. 
(a) IN GENERAL.—Chapter 1 of title 23, United 
States Code, as amended by this Act, is further amended 
by inserting the following new section after section 165: 
‘‘§ 166. Assumption of responsibility for transpor-
tation enhancements, recreational trails, 
and transportation, community, and sys-
tem preservation program projects 
‘‘(a) ASSUMPTION OF SECRETARY’S RESPONSIBIL-
ITIES UNDER APPLICABLE FEDERAL LAWS.—
‘‘(1) IN
GENERAL.—Upon mutual agreement 
the Secretary may assign, and the State may as-
sume, any of the Secretary’s responsibilities (except 
responsibilities relating to federally recognized 
tribes) for environmental reviews, consultation, deci-
sion-making or other actions under any Federal law 
applicable to projects that—
‘‘(A) are funded under section 104(h) or 
section 167 of this title; or
‘‘(B) meet the definition of a transpor-
tation enhancement activity as set forth in sec-
tion 101(a)(38) of this title.
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‘‘(2) LIMITATIONS.—The State shall assume 
these responsibilities subject to the same procedural 
and substantive requirements as would be required 
if such responsibilities were carried out by the Sec-
retary. When a State assumes any responsibility 
under a Federal law pursuant to this section, it as-
sents to Federal jurisdiction and shall be solely re-
sponsible and solely liable for complying with and 
carrying out that law in lieu of the Secretary. 
‘‘(b) AGREEMENTS.—The Secretary and the State 
shall enter into a memorandum of understanding setting 
forth the responsibilities to be assigned under this section 
and the terms and conditions under which such assign-
ments are to be made. In the memorandum of under-
standing the State shall consent to accept the jurisdiction 
of the Federal courts for the compliance, discharge, and 
enforcement of any responsibility of the Secretary it may 
assume. Such memoranda of understanding shall be estab-
lished for periods of no more than three years. The Sec-
retary shall review and determine compliance with the 
memorandum of understanding and the laws assigned by 
it to the State on an annual basis for the first three years 
of the agreement and, subsequently, on a periodic basis 
to be determined by mutual agreement but no longer than 
every three years.
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‘‘(c) TERMINATION.—The Secretary may terminate 
any assignment of responsibility under this section upon 
a determination that a State is not adequately meeting 
the terms and conditions of the memorandum of under-
standing. 
‘‘(d) STATE DEFINED.—For the recreational trails 
program, ‘State’ means the State agency designated by 
the Governor of the State in accordance with section 
206(c)(1) of this title. 
‘‘(e) PRESERVATION OF PUBLIC INTEREST CONSID-
ERATION.—Nothing contained in this section shall be con-
strued to limit the requirements under any applicable law 
providing for the consideration and preservation of the 
public interest, including public participation and commu-
nity values in transportation decision-making. 
‘‘(f) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming the Secretary’s responsibilities under 
this section, the State agency signing the agreement in 
subsection (c) is deemed to be a Federal agency to the 
extent the State is carrying out the Secretary’s respon-
sibilities under the National Environmental Policy Act, 
under this title, and under any other Federal law.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 1 of title 23, United States Code, as amended by
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this Act, is further amended by inserting after the item 
relating to section 165 the following:
‘‘166. Assumption of responsibility for transportation enhancements, rec-
reational trails, and transportation and community and system 
preservation program projects.’’.
SEC. 1816. TRANSPORTATION, COMMUNITY, AND SYSTEM 
PRESERVATION PROGRAM. 
(a) TRANSPORTATION, COMMUNITY, AND SYSTEM 
PRESERVATION PROGRAM.—Chapter 1 of title 23, United 
States Code, as amended by this Act, is further amended 
by inserting the following new section after section 166: 
‘‘§ 167. Transportation, community, and system pres-
ervation program 
‘‘(a) ESTABLISHMENT
AND PURPOSE.—The Sec-
retary shall establish a comprehensive program to inves-
tigate and address the relationships between transpor-
tation and community and system preservation and iden-
tify private sector-based initiatives. Through this program, 
the Secretary shall facilitate the planning, development, 
and implementation of strategies by States, metropolitan 
planning organizations, federally-recognized tribes, and 
local governments to integrate transportation, community, 
and system preservation plans and practices that address 
one or more of the following: 
‘‘(1) Improve the efficiency of the transpor-
tation system.
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‘‘(2) Reduce the impacts of transportation on 
the environment. 
‘‘(3) Reduce the need for costly future invest-
ments in public infrastructure. 
‘‘(4) Provide efficient access to jobs, services, 
and centers of trade. 
‘‘(5) Examine development patterns and iden-
tify strategies to encourage private sector develop-
ment patterns which achieve the goals identified in 
paragraphs (1) through (4). 
‘‘(b) FUNDING.—Funds authorized to be apportioned 
under section 104(q) of this title shall be available to carry 
out the provisions of this section.’’. 
(b) Section 104 of such title is amended by adding 
after subsection (p), as added by this Act, the following: 
‘‘(q) TRANSPORTATION, COMMUNITY, AND SYSTEM 
PRESERVATION PROGRAM.—
‘‘(1) SET-ASIDE.—On October 1 of each fiscal 
year for fiscal years 2004 through 2009, the Sec-
retary, after making the deductions authorized by 
subsections (a) and (f), shall set aside $26,000,000 
of the remaining funds authorized to be apportioned 
under subsection (b)(3) for carrying out the Trans-
portation, Community, and System Preservation 
Program under section 167 of this chapter.
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‘‘(2) APPORTIONMENT.—
‘‘(A) From amounts set aside under para-
graph (1), the Secretary shall apportion 
$500,000 each fiscal year to each State, includ-
ing the District of Columbia and Puerto Rico, 
to carry out the provisions of section 167. 
‘‘(B) A State shall also make funds appor-
tioned under this subsection available to metro-
politan planning organizations, federally-recog-
nized tribes, and local governments in a manner 
and amounts to be determined by the State to 
carry out the provisions of section 167.’’. 
(c) CONFORMING AMENDMENT.—The analysis for 
chapter 1 of title 23, United States Code, as amended by 
this Act, is further amended by inserting after the item 
relating to section 166 the following:
‘‘167. Transportation, community, and system preservation program.’’.
SEC. 1817. PROGRAM EFFICIENCES—FINANCE. 
Section 115 of title 23, United States Code, is 
amended—
(1) by striking ‘‘(a)’’ and all that follows 
through subsection (a)(1)(B); 
(2) by striking subsection (b); 
(3) by redesignating subsection (c) as sub-
section (d);
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(4) 
by 
redesignating 
subsections 
(a)(2), 
(a)(2)(A), and (a)(2)(B) as subsections (c), (c)(1), 
and (c)(2) respectively; and 
(5) by inserting after the section heading the 
following: 
‘‘(a) The Secretary may authorize a State to proceed 
with a project authorized under this title without the aid 
of Federal funds in accordance with all procedures and 
all requirements applicable to such a project, except inso-
far as such procedures and requirements limit the State 
to implementation of projects with the aid of Federal 
funds previously apportioned or allocated to it or limit a 
State to implementation of a project with obligation au-
thority previously allocated to it. 
‘‘(b) The Secretary, upon the request of the State and 
execution of a project agreement, may obligate the Federal 
share, or a portion of the Federal share, of the cost of 
a project authorized under this section from any category 
of funds for which the project is eligible.’’. 
Subtitle I—Technical Corrections 
to Title 23, U.S.C. 
SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT. 
(a) LETTING OF CONTRACTS.—Section 112 of title 
23, United States Code, is amended—
(1) by striking subsection (f); and
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SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDEN-
TIFYING FUNDING SOURCES IN TITLE 23. 
(a) IN GENERAL.—Section 154 of the Federal-Aid 
Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) 
is—
(1) transferred to title 23, United States Code; 
(2) redesignated as section 321; 
(3) moved to appear after section 320 of that 
title; and 
(4) amended by striking the section heading 
and inserting the following: 
‘‘§ 321. Signs identifying funding sources’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 3 of title 23, United States Code, is amended by 
inserting after the item relating to section 320 the fol-
lowing:
‘‘321. Signs identifying funding sources.’’. 
SEC. 1904. INCLUSION OF ‘‘BUY AMERICA’’ REQUIREMENTS 
IN TITLE 23. 
(a) IN GENERAL.—Section 165 of the Highway Im-
provement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 
2136) is—
(1) transferred to title 23, United States Code; 
(2) redesignated as section 313; 
(3) moved to appear after section 312 of that 
title; and
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(4) amended by striking the section heading 
and inserting the following: 
‘‘§ 313. Buy America’’. 
(b) CONFORMING AMENDMENTS.—
(1) The analysis for chapter 3 of title 23, 
United States Code, is amended by inserting after 
the item relating to section 320 the following:
‘‘313. Buy America.’’.
(2) Section 313 of title 23, United States Code 
(as added by subsection (a)), is amended—
(A) in subsection (a), by striking ‘‘any 
funds authorized to be appropriated by this Act 
or by any Act amended by this Act or, after the 
date of enactment of this Act, any funds au-
thorized to be appropriated to carry out this 
Act, title 23, United States Code, or the Sur-
face Transportation Assistance Act of 1978’’ 
and inserting ‘‘any funds authorized to be ap-
propriated to carry out the Surface Transpor-
tation Assistance Act of 1982 (96 Stat. 2097) 
or this title’’; 
(B) in subsection (b), by redesignating 
paragraph (4) as paragraph (3); 
(C) in subsection (d), by striking ‘‘this Act, 
the Surface Transportation Assistance Act of 
1978, or title 23, United States Code,’’ and in-
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serting ‘‘the Surface Transportation Assistance 
Act of 1982 (96 Stat. 2097) or this title’’; 
(D) by striking subsection (e); and 
(E) by redesignating subsections (f) and 
(g) as subsections (e) and (f), respectively. 
SEC. 1905. TECHNICAL AMENDMENTS TO 23 USC 140 (NON-
DISCRIMINATION). 
(a) Section 140(a) of title 23, United States Code, 
is amended as follows: 
(1) At the beginning of the second sentence, 
strike the word ‘‘He’’ and insert in its place the 
words ‘‘The Secretary’’. 
(2) In the first sentence, strike ‘‘subsection (a) 
of section 105’’ and insert in its place ‘‘section 
135’’. 
(3) In the third sentence, strike the phrase 
‘‘where he considers it necessary’’ and insert in its 
place the phrase ‘‘where necessary’’. 
(4) The last sentence is amended to read as fol-
lows: ‘‘The Secretary shall periodically obtain from 
the Secretary of Labor and the respective State 
transportation departments information which will 
enable the Secretary to judge compliance with the 
requirements of this section and the Secretary of 
Labor shall render to the Secretary such assistance
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and information as the Secretary shall deem nec-
essary to carry out the equal employment oppor-
tunity program required hereunder.’’. 
(b) Section 140(b) of title 23, United States Code, 
is amended as follows: 
(1) In the first sentence, strike the words 
‘‘highway construction’’ and insert ‘‘surface trans-
portation.’’
(2) In the second sentence, strike the phrase 
‘‘as he may deem necessary’’ and insert in its place 
the phrase ‘‘as necessary’’, and strike the phrase 
‘‘not to exceed $2,500,000 for the transition quarter 
ending September 30, 1976, and’’. 
(3) In the fourth sentence, strike the phrase 
‘‘shall not be not be applicable to contracts’’ and in-
sert in its place the phrase ‘‘shall not be applicable 
to contracts’’. 
(c) The second sentence of section 140(c) of title 23, 
United States Code, is amended by striking the phrase 
‘‘the Secretary shall deduct such sums as he may deem 
necessary,’’ and inserting in its place the phrase ‘‘the Sec-
retary shall deduct such sums as necessary,’’. 
(d) Section 140(d) of title 23, United States Code, 
is amended by striking from its catchline the words ‘‘and 
contracting’’.
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SEC. 1906. FEDERAL SHARE PAYABLE FOR PROJECTS FOR 
ELIMINATION OF HAZARDS OF RAILWAY-
HIGHWAY CROSSINGS. 
Section 120(c) of title 23, United States Code, is 
amended by amending the first sentence of subsection (c) 
to read as follows: ‘‘The Federal share payable on account 
of any project for traffic control signalization; safety rest 
areas; pavement marking; commuter carpooling and van-
pooling; rail-highway crossing closure; projects for elimi-
nation of hazards of railway-highway crossings, as identi-
fied in section 2604 of Public Law 106–246 (114 Stat. 
511, 559); or installation of traffic signs, traffic lights, 
guardrails, 
impact 
attenuators, 
concrete 
barrier 
endtreatments, breakaway utility poles, or priority control 
systems for emergency vehicles or transit vehicles at sig-
nalized intersections may amount to 100 percent of the 
cost of construction of such projects; except that not more 
than 10 percent of all sums apportioned for all the Fed-
eral-aid systems for any fiscal year in accordance with sec-
tion 104 of this title shall be used under this subsection.’’. 
TITLE II—HIGHWAY SAFETY 
SEC. 2001. HIGHWAY SAFETY PROGRAMS. 
(a) PERFORMANCE GRANTS.—Section 402(k) of title 
23, United States Code, is amended to read as follows: 
‘‘(k) PERFORMANCE GRANTS.—In addition to other 
grants authorized by this section, the Secretary shall make
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ning organizations in the State designated under 
this section under a formula—
‘‘(A) the State develops in cooperation with 
the metropolitan planning organizations; 
‘‘(B) the Secretary of Transportation ap-
proves; and 
‘‘(C) that considers population in urban-
ized areas and provides an appropriate distribu-
tion for urbanized areas to carry out the coop-
erative processes described in this section. 
‘‘(3) The Secretary shall apportion 20 percent 
of the amount made available under subsection 
(h)(2)(A) of this section to States to supplement al-
locations made under paragraph (1) of this sub-
section for metropolitan planning organizations. 
Amounts under this paragraph shall be allocated 
under a formula that reflects the additional cost of 
carrying out planning, programming, and project se-
lection responsibilities under sections 5303 and 5306 
of this title in complex metropolitan planning areas. 
‘‘(e) STATE PLANNING AND RESEARCH PROGRAM.—
‘‘(1) The amounts made available pursuant to 
subsection (h)(2)(B) of this section shall be appor-
tioned to States for grants and contracts to carry 
out sections 5303–5306, 5315, and 5322 of this
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title. The amounts shall be apportioned so that each 
State receives an amount equal to the population in 
urbanized areas in the State, divided by the popu-
lation in urbanized areas in all States, as shown by 
the latest available decennial census. However, a 
State must receive at least .5 percent of the amount 
apportioned under this subsection.
‘‘(2) A State, as the State considers appro-
priate, may authorize part of the amount made 
available under this subsection to be used to supple-
ment amounts available under subsection (d) of this 
section. 
‘‘(f) PLANNING CAPACITY BUILDING PROGRAM.—
‘‘(1) The Secretary shall establish a Planning 
Capacity Building Program to support and fund in-
novative practices and enhancements in transpor-
tation planning. The purpose of this program shall 
be to promote activities that support and strengthen 
the planning processes required under this section 
and sections 5303 and 5304 of this chapter. 
‘‘(2) Funding available under subsection (h)(1) 
of this section to carry out this subsection will sup-
port—
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the project for which the funds are requested has 
been coordinated with private non-profit providers of 
services under this section. 
‘‘(3) A recipient of funds under this section 
shall certify that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, and nonprofit transportation and 
human services providers and participation by 
the public; 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) A grant for a capital project under this 
section may not exceed 80 percent of the net capital 
costs of the project, as determined by the Secretary. 
A grant made under this section for operating as-
sistance may not exceed 50 percent of the net oper-
ating costs of the project, as determined by the Sec-
retary. The remainder may be—
‘‘(A) provided from an undistributed cash 
surplus, a replacement or depreciation cash 
fund or reserve, a service agreement with a
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‘‘(iv) In assessing the stability, reli-
ability, and availability of proposed sources 
of 
local 
financing 
under 
paragraph 
(2)(A)(iii), the Secretary shall consider—
‘‘(I) existing grant commitments; 
‘‘(II) the degree to which financ-
ing sources are dedicated to the pur-
poses propose; 
‘‘(III) any debt obligation that 
exists or is proposed by the recipient 
for the proposed project or other pub-
lic transportation purpose; and
‘‘(IV) the extent to which the 
project has a local financial commit-
ment that exceeds the required non-
Federal share of the cost of the 
project. 
‘‘(3) A proposed project may advance from al-
ternatives analysis to preliminary engineering, and 
may advance from preliminary engineering to final 
design and construction, only if the Secretary finds 
that the project meets the requirements of this sec-
tion and there is a reasonable likelihood that the 
project will continue to meet such requirements. In 
making the findings, the Secretary shall evaluate