109
struction of truck only lanes, and major ar-
terial improvements. 
‘‘(ii) Transportation systemwide oper-
ational improvements targeted at increasing 
motor vehicle travel reliability through such 
means as incident management programs, 
traffic monitoring and surveillance, and 
traveler information initiatives. 
‘‘(iii) Maximizing efficient use of exist-
ing motor vehicle travel capacity through 
such means as reversible lanes, coordinated 
traffic signalization, and managed lanes or 
other lane management strategies. 
‘‘(C) EXCLUSIONS.—Such term does not in-
clude demand relief projects and activities that 
shift demand to non-peak hours or to other 
modes of transportation or that reduce the over-
all level of demand for roads through such means 
as telecommuting, ridesharing, alternative work 
hour programs, and value pricing. 
‘‘(2) UNDER ONE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under one congestion relief activity’ 
means a congestion relief activity that—
110
‘‘(A) will be completed within one year after 
the date of commencement of onsite improve-
ments; 
‘‘(B) has a total projected cost of less than 
$1,000,000; and 
‘‘(C) will improve conditions in the appli-
cable urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization. 
‘‘(3) UNDER THREE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under three congestion relief activi-
ties’ means congestion relief activities that—
‘‘(A) will be completed within 3 years after 
the date of commencement of onsite improve-
ments; and 
‘‘(B) will improve conditions in the appli-
cable urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter I of such title is amended by inserting after the 
item relating to section 138 the following:
‘‘139. Motor vehicle congestion relief.’’.
(c) MOTOR VEHICLE DEFINED.—Title 23, United 
States Code, is amended—
111
(1) in section 154(a)(2), relating to the defini-
tion of motor vehicle, by inserting ‘‘streets, roads, 
and’’ before ‘‘highways’’; 
(2) by redesignating paragraph (2) of section 
154(a) as paragraph (38); 
(3) by moving such redesignated paragraph from 
section 154(a) to the end of section 101(a); 
(4) by redesignating paragraphs (3) and (4) of 
section 154(a) as paragraphs (2) and (3), respec-
tively; 
(5) in section 153(i)—
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; 
(6) in section 164(a)(4) by striking ‘‘means’’ and 
all that follows through ‘‘rail line or’’ and inserting 
‘‘does not include’’; and 
(7) in section 405(f)—
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3), (4), 
(5), and (6) as paragraphs (2), (3), (4), and (5). 
SEC. 1202. TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS. 
(a) DEFINITIONS.—
112
(1) OPERATING
COSTS
FOR
TRAFFIC
MONI-
TORING, 
MANAGEMENT, 
AND
CONTROL.—Section 
101(a)(17) of title 23, United States Code, is amended 
by inserting ‘‘transportation systems management 
and operations and’’ after ‘‘associated with’’. 
(2) 
OPERATIONAL
IMPROVEMENT.—Section 
101(a)(18)(A)(i) of such title is amended—
(A) by inserting ‘‘transportation systems 
management and operations, including’’ after 
‘‘for’’; and 
(B) by inserting ‘‘equipment and programs 
for transportation response to natural disasters,’’ 
after ‘‘incident management programs,’’. 
(3) TRANSPORTATION
SYSTEMS
MANAGEMENT 
AND OPERATIONS.—Section 101(a) of such title is fur-
ther amended by adding at the end the following: 
‘‘(39) TRANSPORTATION SYSTEMS MANAGEMENT 
AND OPERATIONS.—
‘‘(A) IN
GENERAL.—The term ‘transpor-
tation systems management and operations’ 
means an integrated program to optimize the 
performance of existing infrastructure through 
the implementation of multimodal and inter-
modal, cross-jurisdictional systems, services, and 
projects designed to preserve capacity and im-
113
prove the security, safety, and reliability of Fed-
eral-aid highways. 
‘‘(B) INCLUDED ACTIVITIES AND IMPROVE-
MENTS.—The term includes regional operations 
collaboration and coordination activities between 
transportation and public safety agencies and 
improvements such as traffic detection and sur-
veillance, arterial management, freeway manage-
ment, demand management, work zone manage-
ment, emergency management, electronic toll col-
lection, automated enforcement, traffic oper-
ations measures to improve capacity, traffic sig-
nal coordination, optimization of traffic signal 
timing, traffic incident management, commu-
nications equipment related to traffic incident 
management (including integrated, interoper-
able, emergency communications equipment), 
roadway weather management, traveler informa-
tion services, commercial vehicle operations, traf-
fic control, freight management, and coordina-
tion of highway, rail, transit, bicycle, and pedes-
trian operations.’’. 
(b) SURFACE
TRANSPORTATION
PROGRAM
ELIGI-
BILITY.—Section 133(b) of such title is amended—
114
(1) by redesignating paragraphs (13) and (14) 
as paragraphs (12) and (13), respectively; and 
(2) by adding at the end the following: 
‘‘(14) Regional transportation operations col-
laboration and coordination activities that are associ-
ated with regional improvements, including activities 
for traffic incident management, technology deploy-
ment, emergency management and response, traveler 
information, and regional congestion relief.’’. 
(c) NATIONAL HIGHWAY SYSTEM ELIGIBILITY.—Sec-
tion 103(b)(6) of such title is amended by adding at the 
end the following: 
‘‘(Q) Capital, operating, and systems main-
tenance costs for transportation systems manage-
ment and operations.’’. 
(d) TRANSPORTATION SYSTEMS MANAGEMENT
AND 
OPERATIONS.—Subchapter I of chapter 1 of such title is 
further amended by adding at the end the following: 
‘‘§ 166. Transportation systems management and oper-
ations 
‘‘(a) AUTHORITY.—The Secretary may—
‘‘(1) encourage transportation system managers, 
operators, public safety officials, and transportation 
planners within an urbanized area, who are actively 
engaged in and responsible for conducting activities
115
relating to day-to-day management, operations, pub-
lic safety, and planning of transportation facilities 
and services, to collaborate and coordinate on a re-
gional level in a continuous and sustained manner 
for improved transportation systems management and 
operations, including, at a minimum—
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared by 
all transportation and public safety participants 
for how the region’s systems should be managed, 
operated, and measured; 
‘‘(B) sharing of information among opera-
tors, service providers, public safety officials, and 
the general public; and 
‘‘(C) guiding, in a regionally-coordinated 
manner, the implementation of regional trans-
portation system management and operations 
initiatives, including emergency evacuation and 
response, traffic incident management, tech-
nology deployment, and traveler information sys-
tems delivery, in a manner consistent with and 
integrated into the ongoing metropolitan and 
statewide transportation planning processes and 
regional intelligent transportation system archi-
tecture, if required; and
116
‘‘(2) encourage States to establish a system of 
basic real-time monitoring capability for the surface 
transportation system and provide the capability and 
means to share that data among agencies (including 
highway, transit, and public safety agencies), juris-
dictions (including States, cities, counties, and areas 
represented by metropolitan planning organizations), 
private-sector entities, and the traveling public. 
‘‘(b) EXECUTION.—To support the successful execution 
of transportation systems management and operations ac-
tivities, the Secretary may undertake the following activi-
ties: 
‘‘(1) Assist and cooperate with other Federal de-
partments and agencies, State and local governments, 
metropolitan planning organizations, private indus-
try representatives, and other interested parties to im-
prove regional collaboration and real-time informa-
tion sharing between transportation system managers 
and operators, public safety officials, emergency man-
agers, and the general public to increase the security, 
safety, and reliability of Federal-aid highways. 
‘‘(2) Issue, if necessary, new guidance or regula-
tions for the procurement of transportation system 
management and operations facilities, equipment, 
and services, including equipment procured in prepa-
117
ration for natural disasters and emergencies, system 
hardware, software, and software integration serv-
ices.’’. 
(e) CONFORMING AMENDMENT.—The analysis for such 
chapter is further amended by adding at the end the fol-
lowing:
‘‘166. Transportation systems management and operations.’’.
(f) INTELLIGENT TRANSPORTATION SYSTEM PROCURE-
MENT POLICY.—
(1) STUDY.—The Secretary shall—
(A) conduct a study of the current policies 
and practices for the procurement of intelligent 
transportation system facilities, equipment, and 
services; and 
(B) develop a conceptual plan with alter-
native approaches for expediting and stream-
lining such procurements at the State level. 
(2) RECOMMENDATIONS.—Based on the results of 
the study, the Secretary shall make recommendations 
in the report under paragraph (4) regarding procure-
ment standards, including recommendations regard-
ing any changes in Federal and State statutes, regu-
lations, and policies necessary to ensure that national 
interests are served in meeting future intelligent 
transportation system needs.
118
(3) SPECIFIC MATTERS TO BE ADDRESSED.—The 
study under this subsection shall specifically address 
the following: 
(A) CURRENT
CONDITION.—The current 
practices and policies relating to procurement of 
intelligent 
transportation 
system 
facilities, 
equipment, and services, including equipment 
procured in preparation for natural disasters 
and emergencies, system hardware, software, and 
software integration services. 
(B) ASSESSMENT OF NEED FOR POLICY RE-
FORM.—The ability of current practices and 
policies to achieve the successful implementation 
of intelligent transportation system goals and the 
need for national policy reform to expedite and 
streamline procurements necessary to meet such 
goals. 
(C) ALTERNATIVES.—The range of legisla-
tive, regulatory, and policy alternatives to ad-
dress identified needs and goals, including fund-
ing needs. 
(D) 
RECOMMENDATIONS.—Recommenda-
tions regarding procurement standards, includ-
ing recommendations regarding any changes in 
Federal and State statutes, regulations, and poli-
119
cies necessary for expedited and streamlined pro-
curements. 
(4) REPORT AND RECOMMENDATIONS.—Not later 
than March 31, 2006, the Secretary shall transmit to 
the appropriate committees of Congress a final report 
regarding the results of the study conducted under 
this subsection and recommendations to address the 
needs identified in such study. 
(5) INITIATION OF RULEMAKING PROCEEDING.—
To the extent any recommendation made by the Sec-
retary under this subsection may be implemented by 
regulation, the Secretary shall initiate a rulemaking 
proceeding to address such recommendation not later 
than the 90th day following the date of submission of 
the report under paragraph (4). 
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the High-
way Trust Fund (other than the Mass Transit Ac-
count) $1,000,000 in fiscal year 2005 to carry out 
this subsection. 
(7) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able 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
120
the cost of the study under this subsection shall be 100 
percent and such funds shall remain available until 
expended. 
SEC. 1203. REAL-TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM. 
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish 
a real-time system management information program 
to provide, in all States, the capability to monitor, in 
real-time, the traffic and travel conditions of the Na-
tion’s major highways and to share that information 
to improve the security of the surface transportation 
system, to address congestion problems, to support im-
proved response to weather events and surface trans-
portation incidents, and to facilitate national and re-
gional highway traveler information. 
(2) PURPOSES.—The purposes of the real-time 
system management information program are to—
(A) establish, in all States, a system of 
basic real-time information for managing and 
operating the surface transportation system; 
(B) identify longer range real-time highway 
and transit monitoring needs and develop plans 
and strategies for meeting such needs; and
121
(C) provide the capability and means to 
share that data with State and local govern-
ments and the traveling public. 
(b) NATIONAL STEERING COMMITTEE.—
(1) IN GENERAL.—The Secretary shall establish 
a national steering committee to assist in the develop-
ment of data exchange formats under subsection (c). 
(2) REPRESENTATIVES.—The national steering 
committee shall consist of representatives of State 
transportation departments, metropolitan planning 
organizations, local governments, nonprofit entities, 
the private sector, and academia. 
(3) PURPOSE.—The purpose of the national 
steering committee shall be to provide guidance re-
garding the content and uniformity of data exchange 
formats. 
(c) DATA EXCHANGE FORMATS.—Not later than 2 
years after the date of enactment of this Act, the Secretary 
shall establish data exchange formats based on recommenda-
tions of the steering committee established under subsection 
(b) to ensure that the data provided by highway and transit 
monitoring systems, including statewide incident reporting 
systems, can readily be exchanged across jurisdictional 
boundaries, facilitating nationwide availability of informa-
tion.
122
(d) REGIONAL INTELLIGENT TRANSPORTATION SYS-
TEM ARCHITECTURE.—
(1) 
ADDRESSING
INFORMATION
NEEDS.—As 
State and local governments develop or update re-
gional intelligent transportation system architectures, 
described in section 940.9 of title 23, Code of Federal 
Regulations, such governments shall explicitly address 
real-time highway and transit information needs and 
the systems needed to meet such needs, including ad-
dressing coverage, monitoring systems, data fusion 
and archiving, and methods of exchanging or sharing 
highway and transit information. 
(2) DATA EXCHANGE.—States shall incorporate 
the data exchange formats established by the Sec-
retary under subsection (c) to ensure that the data 
provided by highway and transit monitoring systems 
may readily be exchanged with State and local gov-
ernments and may be made available to the traveling 
public. 
(e) ELIGIBILITY.—Subject to project approval by the 
Secretary, a State may obligate funds apportioned to the 
State under sections 104(b)(1), 104(b)(2), and 104(b)(3) of 
title 23, United States Code, for activities related to the 
planning and deployment of real-time monitoring elements
123
that advance the goals and purposes described in subsection 
(a). 
(f) LIMITATION
ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or oth-
erwise affecting the applicability of the requirements of 
chapter 1 of title 23, United States Code (including require-
ments relating to the eligibility of a project for assistance 
under the program, the location of the project, and the Fed-
eral-share payable on account of the project), to amounts 
apportioned to a State for a program under section 104(b) 
that are obligated by the State for activities and projects 
under this section. 
(g) STATEWIDE INCIDENT REPORTING SYSTEM DE-
FINED.—In this section, the term ‘‘statewide incident re-
porting system’’ means a statewide system for facilitating 
the real-time electronic reporting of surface transportation 
incidents to a central location for use in monitoring the 
event, providing accurate traveler information, and re-
sponding to the incident as appropriate. 
SEC. 1204. EXPEDITED NATIONAL INTELLIGENT TRANSPOR-
TATION SYSTEMS DEPLOYMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish a 
comprehensive program to accelerate the integration, inter-
operability, and deployment of intelligent transportation
124
systems in order to improve the performance of the surface 
transportation system in metropolitan and rural areas. 
(b) SELECTION
OF MODEL PROJECTS.—Under the 
program, the Secretary may make grants, through competi-
tive solicitation, for projects that will serve as models to 
improve transportation efficiency, promote surface trans-
portation safety (including safe freight movement), increase 
traffic flow (including the flow of intermodal travel at ports 
of entry), reduce emissions of air pollutants, improve trav-
eler information, enhance alternative transportation modes, 
build on existing intelligent transportation system projects, 
and promote tourism. 
(c) OTHER PROJECTS, PROGRAMS, AND ACTIVITIES.—
Under the program, the Secretary may make grants for 
projects, programs, and activities in metropolitan and 
rural areas that—
(1) contribute to national deployment goals and 
objectives outlined in the national intelligent trans-
portation system program plan; 
(2) promote cooperation among agencies, juris-
dictions, and the private sector, as evidenced by 
signed memoranda of understanding that clearly de-
fine the responsibilities and relations of all parties to 
a partnership arrangement, including institutional
125
relationships and financial agreements needed to sup-
port deployment of intelligent transportation systems; 
(3) encourage private sector involvement and fi-
nancial commitment to such deployment to the max-
imum extent practicable through innovative financial 
arrangements, especially public-private partnerships, 
including arrangements that generate revenue to offset 
public investment costs; 
(4) enhance fully integrated intelligent transpor-
tation system deployment; 
(5) create technical capacity for effective oper-
ations and maintenance of such systems; 
(6) improve safety, mobility, geographic and re-
gional diversity, and economic development in de-
ployment of such systems; 
(7) advance deployment of the 511 traveler infor-
mation program; and 
(8) advance deployment of other national sys-
tems, including a statewide incident reporting system, 
wireless e-911 system, and road weather information 
system. 
(d) APPLICABILITY
OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated under section 
1101(a)(16) of this Act shall be available for obligation to 
carry out subsection (c)(7) in the same manner and to the
126
same extent as if such funds were apportioned under chap-
ter 1 of title 23, United States Code; except that the Federal 
share of the cost of projects carried out under subsection 
(c)(7) shall be 80 percent and such funds shall remain 
available until expended. 
SEC. 1205. INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT. 
(a) PURPOSE.—The purpose of this section is to ensure 
that a minimum of $2,500,000,000 of the amounts author-
ized to be appropriated for the National Highway System, 
Interstate maintenance, surface transportation, and conges-
tion mitigation and air quality improvement programs for 
fiscal years 2005 through 2009 is utilized to expand deploy-
ment of intelligent transportation systems. 
(b) IN GENERAL.—Chapter 1 of title 23, United States 
Code, is amended by inserting after section 149 the fol-
lowing: 
‘‘§ 150. Deployment of intelligent transportation sys-
tems 
‘‘(a) IN GENERAL.—In each of fiscal years 2005 
through 2009, each State shall obligate a portion of the 
funds apportioned to the State under sections 104(b)(1), 
104(b)(2), 104(b)(3), and 104(b)(4) for such fiscal year, cal-
culated under subsection (b), for projects described in sub-
127
section (c) that support deployment of intelligent transpor-
tation systems in the State. 
‘‘(b) CALCULATION OF AMOUNT.—The portion of a 
State’s apportionments to be obligated under subsection (a) 
for projects described in subsection (c) in a fiscal year shall 
be determined by multiplying $500,000,000 by the ratio 
that—
‘‘(1) the aggregate of amounts apportioned to the 
State for such fiscal year under sections 104(b)(1), 
104(b)(2), 104(b)(3), and 104(b)(4); bears to 
‘‘(2) the aggregate of amounts apportioned to all 
States for such fiscal year under such sections. 
‘‘(c) INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT PROJECTS.—Projects for which funds must be 
obligated under this section include the following: 
‘‘(1) PERFORMANCE.—Establishment and imple-
mentation of operations systems and services that im-
prove performance in the areas of traffic operations, 
emergency response to surface transportation inci-
dents, surface transportation incident management, 
weather event response management by State and 
local authorities, surface transportation network and 
facility management, construction and work zone 
management, and traffic flow information.
128
‘‘(2) NETWORKS.—Conducting activities that 
support the creation of networks that link metropoli-
tan and rural surface transportation systems into an 
integrated data network, capable of collecting, shar-
ing, and archiving transportation system traffic con-
dition and performance information. 
‘‘(3) SAFETY.—Implementation of intelligent 
transportation system technologies that improve high-
way safety through linkages connecting the vehicle, 
the infrastructure, and information to the driver. 
‘‘(4) OPERATION AND MANAGEMENT.—Provision 
of services necessary to ensure the efficient operation 
and management of intelligent transportation systems 
infrastructure, including costs associated with com-
munications, utilities, rent, hardware, software, labor, 
administrative costs, training, and technical services. 
‘‘(5) INTERAGENCY SUPPORT.—Provision of sup-
port for institutional relationships between transpor-
tation agencies, police, emergency medical services, 
private emergency operators, freight operators, and 
shippers. 
‘‘(6) PLANNING.—Conducting cross-jurisdictional 
planning and deployment of regional transportation 
systems operations and management approaches. 
‘‘(d) OBLIGATION OF AMOUNTS.—
129
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by 
a State for projects under subsection (c) that support 
deployment of intelligent transportation systems in 
such State under subsection (a) shall be allocated 
among the individual programs for which funds are 
apportioned under sections 104(b)(1), 104(b)(2), 
104(b)(3), and 104(b)(4). 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
as requiring a State to obligate proportional or equal 
amounts 
under 
sections 
104(b)(1), 
104(b)(2), 
104(b)(3), and 104(b)(4) for any congestion relief ac-
tivity under this section. 
‘‘(e) LIMITATION
ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or oth-
erwise affecting the applicability of the requirements of this 
chapter (including requirements relating to the eligibility 
of a project for assistance under the program, the location 
of the project, and the Federal-share payable on account of 
the project) to amounts apportioned to a State for a pro-
gram under section 104(b) that are obligated by the State 
for projects under this section.
130
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section.’’. 
(c) CONFORMING AMENDMENT.—The analysis for such 
chapter is amended by inserting after the item relating to 
section 149 the following:
‘‘150. Deployment of intelligent transportation systems.’’.
SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT 
SUPPORT 
DEPLOYMENT 
OF 
INTELLIGENT 
TRANSPORTATION SYSTEMS. 
(a) CATEGORICAL EXCLUSIONS.—Not later than one 
year after the date of enactment of this Act, the Secretary 
shall initiate a rulemaking process to establish, to the extent 
appropriate, categorical exclusions for activities that sup-
port the deployment of intelligent transportation infra-
structure and systems from the requirement that an envi-
ronmental assessment or an environmental impact state-
ment be prepared under section 102 of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (42 
U.S.C. 4332) in compliance with the standards for categor-
ical exclusions established by that Act. 
(b) NATIONWIDE PROGRAMMATIC AGREEMENT.—
(1) DEVELOPMENT.—The Secretary shall develop 
a nationwide programmatic agreement governing the 
review of activities that support the deployment of in-
telligent transportation infrastructure and systems in
131
accordance with section 106 of the National Historic 
Preservation Act (16 U.S.C. 470f) and the regulations 
of the Advisory Council on Historic Preservation. 
(2) CONSULTATION.—The Secretary shall develop 
the agreement under paragraph (1) in consultation 
with the National Conference of State Historic Preser-
vation Officers and the Advisory Council on Historic 
Preservation established under title II of the National 
Historic Preservation Act (26 U.S.C. 470i et seq.) 
and after soliciting the views of other interested par-
ties. 
(c) INTELLIGENT TRANSPORTATION INFRASTRUCTURE 
AND SYSTEMS DEFINED.—In this section, the term ‘‘intel-
ligent transportation infrastructure and systems’’ means 
intelligent transportation infrastructure and intelligent 
transportation systems, as such terms are defined in section 
5607. 
SEC. 1207. STATE ASSUMPTION OF RESPONSIBILITIES FOR 
CERTAIN PROGRAMS AND PROJECTS. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following:
132
‘‘§ 167. State assumption of responsibilities for certain 
programs and projects 
‘‘(a) ASSUMPTION OF SECRETARY’S RESPONSIBILITIES 
UNDER APPLICABLE FEDERAL LAWS.—
‘‘(1) PILOT PROGRAM.—
‘‘(A) ESTABLISHMENT.—The Secretary may 
establish a pilot program under which States 
may assume the responsibilities of the Secretary 
under any Federal laws subject to the require-
ments of this section. 
‘‘(B) FIRST 3 FISCAL YEARS.—In the first 3 
fiscal years following the date of enactment of 
this section, the Secretary may allow up to 5 
States to participate in the pilot program. 
‘‘(2) SCOPE OF PROGRAM.—Under the pilot pro-
gram, the Secretary may assign, and a State may as-
sume, any of the Secretary’s responsibilities (other 
than responsibilities relating to federally recognized 
Indian tribes) for environmental reviews, consulta-
tion, or decisionmaking or other actions required 
under any Federal law as such requirements apply to 
the following projects: 
‘‘(A) Projects funded under section 104(h). 
‘‘(B) Transportation enhancement activities 
under section 133, as such term is defined in sec-
tion 101(a)(35).
133
‘‘(C) 
Projects 
as 
defined 
in 
section 
101(a)(39) and section 5607 of the Transpor-
tation Equity Act: A Legacy for Users. 
‘‘(b) AGREEMENTS.—
‘‘(1) IN
GENERAL.—The Secretary shall enter 
into a memorandum of understanding with a State 
participating in the pilot program setting forth the 
responsibilities to be assigned under subsection (a)(2) 
and the terms and conditions under which the assign-
ment is being made. 
‘‘(2) CERTIFICATION.—Before the Secretary en-
ters into a memorandum of understanding with a 
State under paragraph (1), the State shall certify 
that the State has in effect laws (including regula-
tions) applicable to projects carried out and funded 
under this title and chapter 53 of title 49 that author-
ize the State to carry out the responsibilities being as-
sumed. 
‘‘(3) MAXIMUM DURATION.—A memorandum of 
understanding with a State under this section shall 
be established for an initial period of no more than 
3 years and may be renewed by mutual agreement on 
a periodic basis for periods of not more than 3 years. 
‘‘(4) COMPLIANCE.—
134
‘‘(A) IN GENERAL.—After entering into a 
memorandum of understanding under paragraph 
(1), the Secretary shall review and determine 
compliance by the State with the memorandum 
of understanding. 
‘‘(B) RENEWALS.—The Secretary shall take 
into account the performance of a State under 
the pilot program when considering renewal of a 
memorandum of understanding with the State 
under the program. 
‘‘(c) SELECTION OF STATES FOR PILOT PROGRAM.—
‘‘(1) APPLICATION.—To be eligible to participate 
in the pilot program, a State shall submit to the Sec-
retary an application that contains such information 
as the Secretary may require. At a minimum, an ap-
plication shall include—
‘‘(A) a description of the projects or classes 
of projects for which the State seeks to assume re-
sponsibilities under subsection (a)(2); and 
‘‘(B) a certification that the State has the 
capability to assume such responsibilities. 
‘‘(2) PUBLIC
NOTICE.—Before entering into a 
memorandum of understanding allowing a State to 
participate in the pilot program, the Secretary 
shall—
135
‘‘(A) publish notice in the Federal Register 
of the Secretary’s intent to allow the State to 
participate in the program, including a copy of 
the State’s application to the Secretary and the 
terms of the proposed agreement with the State; 
and 
‘‘(B) provide an opportunity for public 
comment. 
‘‘(3) SELECTION CRITERIA.—The Secretary may 
approve the application of a State to assume respon-
sibilities under the program only if—
‘‘(A) the requirements under paragraph (2) 
have been met; and 
‘‘(B) the Secretary determines that the State 
has the capability to assume the responsibilities. 
‘‘(4) OTHER FEDERAL AGENCY VIEWS.—Before 
assigning to a State a responsibility of the Secretary 
that requires the Secretary to consult with another 
Federal agency, the Secretary shall solicit the views of 
the Federal agency. 
‘‘(d) STATE DEFINED.—With respect to the rec-
reational trails program, the term ‘State’ means the State 
agency designated by the Governor of the State in accord-
ance with section 206(c)(1).
136
‘‘(e) PRESERVATION OF PUBLIC INTEREST CONSIDER-
ATION.—Nothing in this section shall be construed to limit 
the requirements under any applicable law providing for 
the consideration and preservation of the public interest, 
including public participation and community values in 
transportation decisionmaking.’’. 
(b) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter 1 of such title is amended by adding 
at the end the following:
‘‘167. State assumption of responsibilities for certain programs and projects.’’.
SEC. 1208. HOV FACILITIES. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘§ 168. HOV facilities 
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY OF STATE AGENCIES.—A State 
agency that has jurisdiction over the operation of a 
HOV facility shall establish the occupancy require-
ments of vehicles operating on the facility. 
‘‘(2) OCCUPANCY REQUIREMENT.—Except as oth-
erwise provided by this section, no fewer than 2 occu-
pants per vehicle may be required for use of a HOV 
facility. 
‘‘(b) EXCEPTIONS.—Notwithstanding the occupancy 
requirements of subsection (a)(2), the following exceptions
137
shall apply with respect to a State agency operating a HOV 
facility: 
‘‘(1) MOTORCYCLES AND BICYCLES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility. 
‘‘(B) SAFETY EXCEPTION.—A State agency 
may restrict use of the HOV facility by motor-
cycles or bicycles (or both) if the agency certifies 
to the Secretary that such use would create a 
safety hazard and the Secretary accepts the cer-
tification. The Secretary may accept a certifi-
cation under this subparagraph only after the 
Secretary publishes notice of the certification in 
the Federal Register and provides an oppor-
tunity for public comment. 
‘‘(2) PUBLIC TRANSPORTATION VEHICLES.—The 
State agency may allow public transportation vehicles 
to use the HOV facility if the agency—
‘‘(A) establishes requirements for clearly 
identifying the vehicles; and 
‘‘(B) establishes procedures for enforcing the 
restrictions on the use of the facility by such ve-
hicles.
138
‘‘(3) HIGH
OCCUPANCY
TOLL
VEHICLES.—The 
State agency may allow vehicles not otherwise exempt 
pursuant to this subsection to use the HOV facility if 
the operators of such vehicles pay a toll charged by 
the agency for use of the facility and the agency—
‘‘(A) establishes a program that addresses 
how motorists can enroll and participate in the 
toll program; 
‘‘(B) develops, manages, and maintains a 
system that will automatically collect the toll; 
and 
‘‘(C) establishes policies and procedures 
to—
‘‘(i) manage the demand to use the fa-
cility by varying the toll amount that is 
charged; 
‘‘(ii) enforce violations of use of the fa-
cility; and 
‘‘(iii) permit low-income individuals to 
pay reduced tolls. 
‘‘(4) LOW EMISSION AND ENERGY-EFFICIENT VE-
HICLES.—
‘‘(A) INHERENTLY
LOW-EMISSION
VEHI-
CLE.—Before September 30, 2009, the State 
agency may allow vehicles that are certified as
139
inherently low-emission vehicles pursuant to sec-
tion 88.311–93 of title 40, Code of Federal Regu-
lations, and are labeled in accordance with sec-
tion 88.312–93 of such title, to use the HOV fa-
cility if the agency establishes procedures for en-
forcing the restrictions on the use of the facility 
by such vehicles. 
‘‘(B) OTHER LOW EMISSION AND ENERGY-
EFFICIENT
VEHICLES.—Before September 30, 
2009, the State agency may allow vehicles cer-
tified as low emission and energy-efficient vehi-
cles under subsection (e), and labeled in accord-
ance with subsection (e), to use the HOV facility 
if the operators of such vehicles pay a toll 
charged by the agency for use of the facility and 
the agency—
‘‘(i) establishes a program that ad-
dresses the selection of vehicles under this 
paragraph; and 
‘‘(ii) establishes procedures for enforc-
ing the restrictions on the use of the facility 
by such vehicles. 
‘‘(C) AMOUNT OF TOLLS.—Under subpara-
graph (B), a State agency may charge no toll or
140
a toll that is less than tolls charged under para-
graph (3). 
‘‘(c) REQUIREMENTS APPLICABLE TO TOLLS.—
‘‘(1) IN GENERAL.—Tolls may be charged under 
subsections (b)(3) and (b)(4) notwithstanding section 
301 and, except as provided in paragraphs (2) and 
(3), subject to the requirements of section 129. 
‘‘(2) HOV FACILITIES ON THE INTERSTATE SYS-
TEM.—Notwithstanding section 129, tolls may be 
charged under subsections (b)(3) and (b)(4) on a 
HOV facility on the Interstate System. 
‘‘(3) EXCESS TOLL REVENUES.—If a State agen-
cy makes a certification under the last sentence of sec-
tion 129(a)(3) with respect to toll revenues collected 
under subsections (b)(3) and (b)(4), the State, in the 
use of tolls revenues under that sentence, shall give 
priority consideration to projects for developing alter-
natives to single occupancy vehicle travel and projects 
for improving highway safety. 
‘‘(d) HOV FACILITY MANAGEMENT, OPERATION, MON-
ITORING, AND ENFORCEMENT.—
‘‘(1) IN GENERAL.—A State agency that allows 
vehicles to use a HOV facility under subsection (b)(3) 
or (b)(4) in a fiscal year shall certify to the Secretary
141
that the agency will carry out the following respon-
sibilities with respect to the facility in the fiscal year: 
‘‘(A) Establishing, managing, and sup-
porting a performance monitoring, evaluation, 
and reporting program for the facility that pro-
vides for continuous monitoring, assessment, and 
reporting on the impacts that such vehicles may 
have on the operation of the facility and adja-
cent highways. 
‘‘(B) Establishing, managing, and sup-
porting an enforcement program that ensures 
that the facility is being operated in accordance 
with the requirements of this section. 
‘‘(C) Limiting or discontinuing the use of 
the facility by such vehicles if the presence of 
such vehicles has degraded the operation of the 
facility. 
‘‘(2) DEGRADED FACILITY.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the operation of a HOV facility shall 
be considered to be degraded if vehicles operating 
on the facility are failing to maintain a min-
imum average operating speed 90 percent of the 
time over a consecutive 6-month period during
142
morning or evening weekday peak hour periods 
(or both). 
‘‘(B) MINIMUM AVERAGE OPERATING SPEED 
DEFINED.—In subparagraph (A), the term ‘min-
imum average operating speed’ means—
‘‘(i) 45 miles per hour, in the case of 
a HOV facility with a speed limit of 50 
miles per hour or greater; and 
‘‘(ii) not more than 10 miles per hour 
below the speed limit, in the case of a HOV 
facility with a speed limit of less than 50 
miles per hour. 
‘‘(e) CERTIFICATION OF LOW EMISSION AND ENERGY-
EFFICIENT VEHICLES.—Not later than 6 months after the 
date of enactment of this section, the Administrator of the 
Environmental Protection Agency shall issue a final rule 
establishing requirements for certification of vehicles as low 
emission and energy-efficient vehicles for purposes of this 
section and requirements for the labeling of such vehicles. 
‘‘(f) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) ALTERNATIVE
FUEL
VEHICLE.—The term 
‘alternative fuel vehicle’ means a vehicle that operates 
on—