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fiscal year 2007, $125,000,000 for fiscal year 2008, 
and $130,000,000 for fiscal year 2009. 
(20) HIGHWAY USE TAX EVASION PROGRAM.—
For highway use tax evasion projects under section 
143 of title 23, United States Code, $12,000,000 for 
fiscal year 2004, $30,000,000 for fiscal year 2005, 
$30,000,000 for fiscal year 2006, $20,000,000 for 
fiscal year 2007, $10,000,000 for fiscal year 2008, 
and $7,000,000 for fiscal year 2009. 
(21) PEDESTRIAN AND CYCLIST EQUITY.—
(A) SAFE ROUTES TO SCHOOL PROGRAM.—
For the safe routes to school program under 
section 1120(a) of this title, $150,000,000 for 
fiscal year 2005, $175,000,000 for fiscal year 
2006, $175,000,000 for fiscal year 2007, 
$175,000,000 
for 
fiscal 
year 
2008, 
and 
$200,000,000 for fiscal year 2009. 
(B) NONMOTORIZED
PILOT
PROGRAM.—
For the nonmotorized pilot program under sec-
tion 1120(b) of this title, $25,000,000 for each 
of fiscal years 2005 through 2009. 
(22) DEDICATED
TRUCK
LANES.—For dedi-
cated truck lanes under section 1305 of this title, 
$165,000,000 for each of fiscal years 2005 through 
2008 and $170,000,000 for fiscal year 2009.
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(23) HIGHWAYS FOR LIFE PROGRAM.—For the 
Highways for LIFE program under section 1504 of 
this title, $55,000,000 for fiscal year 2005 and 
$60,000,000 for each of fiscal years 2006 through 
2009. 
(24) COMMONWEALTH OF PUERTO RICO HIGH-
WAY PROGRAM.—For the Commonwealth of Puerto 
Rico highway program under section 1214(r) of the 
Transportation Equity Act for the 21st Century 
(112 Stat. 209), $115,000,000 for fiscal year 2004, 
$125,000,000 for fiscal year 2005, $130,000,000 for 
fiscal year 2006, $130,000,000 for fiscal year 2007, 
$140,000,000 
for 
fiscal 
year 
2008, 
and 
$140,000,000 for fiscal year 2009. 
(b) DISADVANTAGED BUSINESS ENTERPRISES.—
(1) GENERAL RULE.—Except to the extent that 
the Secretary determines otherwise, not less than 10 
percent of the amounts made available for any pro-
gram under titles I, III, and V of this Act and sec-
tion 403 of title 23, United States Code, shall be ex-
pended with small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals. 
(2) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
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(A) 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 individual or indi-
viduals which has average annual gross receipts 
over the preceding 3 fiscal years in excess of 
$17,420,000, as adjusted by the Secretary for 
inflation. 
(B) SOCIALLY
AND
ECONOMICALLY
DIS-
ADVANTAGED
INDIVIDUALS.—The term ‘‘so-
cially and economically disadvantaged individ-
uals’’ has the meaning such term has under 
section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) and relevant subcontracting reg-
ulations promulgated pursuant thereto; except 
that women shall be presumed to be socially 
and economically disadvantaged individuals for 
purposes of this subsection. 
(3) ANNUAL LISTING OF DISADVANTAGED BUSI-
NESS ENTERPRISES.—Each State shall annually sur-
vey and compile a list of the small business concerns 
referred to in paragraph (1) and the location of such
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concerns in the State and notify the Secretary, in 
writing, of the percentage of such concerns which 
are controlled by women, by socially and economi-
cally disadvantaged individuals (other than women), 
and by individuals who are women and are otherwise 
socially and economically disadvantaged individuals. 
(4) UNIFORM CERTIFICATION.—The Secretary 
shall establish minimum uniform criteria for State 
governments to use in certifying whether a concern 
qualifies for purposes of this subsection. Such min-
imum uniform criteria shall include, but not be lim-
ited to, on-site visits, personal interviews, licenses, 
analysis of stock ownership, listing of equipment, 
analysis of bonding capacity, listing of work com-
pleted, resume of principal owners, financial capac-
ity, and type of work preferred. 
(5) COMPLIANCE WITH COURT ORDERS.—Noth-
ing in this subsection limits the eligibility of an enti-
ty or person to receive funds made available under 
titles I, III, and V of this Act and section 403 of 
title 23, United States Code, if the entity or person 
is prevented, in whole or in part, from complying 
with paragraph (1) because a Federal court issues a 
final order in which the court finds that the require-
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ment of paragraph (1), or the program established 
under paragraph (1), is unconstitutional. 
SEC. 1102. OBLIGATION CEILING. 
(a) GENERAL LIMITATION.—Notwithstanding any 
other provision of law but subject to subsections (g) and 
(h), the obligations for Federal-aid highway and highway 
safety construction programs shall not exceed—
(1) $33,643,000,000 for fiscal year 2004; 
(2) $34,412,000,000 for fiscal year 2005; 
(3) $36,287,100,000 for fiscal year 2006; 
(4) $37,616,700,000 for fiscal year 2007; 
(5) $38,876,400,000 for fiscal year 2008; and 
(6) $40,231,500,000 for fiscal year 2009. 
(b) EXCEPTIONS.—The limitations under subsection 
(a) shall not apply to obligations—
(1) under section 125 of title 23, United States 
Code; 
(2) under section 147 of the Surface Transpor-
tation Assistance Act of 1978; 
(3) under section 9 of the Federal-Aid Highway 
Act of 1981; 
(4) under sections 131(b) and 131(j) of the 
Surface Transportation Assistance Act of 1982;
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(5) under sections 149(b) and 149(c) of the 
Surface Transportation and Uniform Relocation As-
sistance Act of 1987; 
(6) under sections 1103 through 1108 of the 
Intermodal Surface Transportation Efficiency Act of 
1991; 
(7) under section 157 of title 23, United States 
Code, as in effect on June 8, 1998; 
(8) under section 105 of title 23, United States 
Code (but, for each of fiscal years 1998 through 
2013), only in an amount equal to $639,000,000 per 
fiscal year; and 
(9) for Federal-aid highway programs for which 
obligation authority was made available under the 
Transportation Equity Act for the 21st Century or 
subsequent public laws for multiple years or to re-
main available until used, but only to the extent that 
such obligation authority has not lapsed or been 
used. 
(c) DISTRIBUTION OF OBLIGATION AUTHORITY.—
For each of fiscal years 2004 through 2009, the Secretary 
shall—
(1) not distribute obligation authority provided 
by subsection (a) for such fiscal year for amounts 
authorized for administrative expenses and amounts
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authorized for the highway use tax evasion program 
and the Bureau of Transportation Statistics; 
(2) not distribute an amount of obligation au-
thority provided by subsection (a) that is equal to 
the unobligated balance of amounts made available 
from the Highway Trust Fund (other than the Mass 
Transit Account) for Federal-aid highway and high-
way safety programs for previous fiscal years the 
funds for which are allocated by the Secretary; 
(3) determine the ratio that—
(A) the obligation authority provided by 
subsection (a) for such fiscal year less the ag-
gregate of amounts not distributed under para-
graphs (1) and (2), bears to 
(B) the total of the sums authorized to be 
appropriated for Federal-aid highway and high-
way safety construction programs (other than 
sums authorized to be appropriated for sections 
set forth in paragraphs (1) through (7) of sub-
section (b) and sums authorized to be appro-
priated for section 105 of title 23, United 
States Code, equal to the amount referred to in 
subsection (b)(8)) for such fiscal year less the 
aggregate of the amounts not distributed under 
paragraph (1) of this subsection;
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(4) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) for section 
117 of title 23, United States Code (relating to high 
priority projects program), section 14501 of title 40, 
United States Code (relating to Appalachian devel-
opment highway system), and $2,000,000,000 for 
such fiscal year under section 105 of title 23, United 
States Code (relating to minimum guarantee) so 
that amount of obligation authority available for 
each of such sections is equal to the amount deter-
mined by multiplying the ratio determined under 
paragraph (3) by the sums authorized to be appro-
priated for such section (except in the case of sec-
tion 105, $2,000,000,000) for such fiscal year; 
(5) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) and 
amounts distributed under paragraph (4) for each of 
the programs that are allocated by the Secretary 
under this Act and title 23, United States Code 
(other than activities to which paragraph (1) applies 
and programs to which paragraph (4) applies) by 
multiplying the ratio determined under paragraph
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(3) by the sums authorized to be appropriated for 
such program for such fiscal year; and 
(6) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) and 
amounts distributed under paragraphs (4) and (5) 
for Federal-aid highway and highway safety con-
struction programs (other than the minimum guar-
antee program, but only to the extent that amounts 
apportioned for the minimum guarantee program for 
such fiscal year exceed $2,639,000,000, and the Ap-
palachian development highway system program) 
that are apportioned by the Secretary under this Act 
and title 23, United States Code, in the ratio that—
(A) sums authorized to be appropriated for 
such programs that are apportioned to each 
State for such fiscal year, bear to 
(B) the total of the sums authorized to be 
appropriated for such programs that are appor-
tioned to all States for such fiscal year. 
(d) REDISTRIBUTION OF UNUSED OBLIGATION AU-
THORITY.—Notwithstanding subsection (c), the Secretary 
shall after August 1 of each of fiscal years 2004 through 
2009 revise a distribution of the obligation authority made 
available under subsection (c) if an amount made available
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under this section will not be obligated during the fiscal 
year and redistribute sufficient amounts to those States 
able to obligate amounts in addition to those previously 
distributed during that fiscal year. In making the redis-
tribution, the Secretary shall give priority to those States 
having large unobligated balances of funds apportioned 
under sections 104 and 144 of title 23, United States 
Code. 
(e) APPLICABILITY OF OBLIGATION LIMITATIONS TO 
TRANSPORTATION
RESEARCH
PROGRAMS.—Obligation 
limitations imposed by subsection (a) shall apply to trans-
portation research programs carried out under chapter 5 
of title 23, United States Code, and under title V of this 
Act; except that obligation authority made available for 
such programs under such limitations shall remain avail-
able for a period of 3 fiscal years. 
(f) REDISTRIBUTION
OF
CERTAIN
AUTHORIZED 
FUNDS.—Not later than 30 days after the date of the dis-
tribution of obligation authority under subsection (c) for 
each of fiscal years 2004 through 2009, the Secretary 
shall distribute to the States any funds (1) that are au-
thorized to be appropriated for such fiscal year for Fed-
eral-aid highway programs, and (2) that the Secretary de-
termines will not be allocated to the States, and will not 
be available for obligation, in such fiscal year due to the
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imposition of any obligation limitation for such fiscal year. 
Such distribution to the States shall be made in the same 
ratio as the distribution of obligation authority under sub-
section (c)(6). The funds so distributed shall be available 
for any purposes described in section 133(b) of title 23, 
United States Code. 
(g) SPECIAL RULE.—Obligation authority distributed 
for a fiscal year under subsection (c)(4) for a section set 
forth in subsection (c)(4) shall remain available until used 
for obligation of funds for such section and shall be in 
addition to the amount of any limitation imposed on obli-
gations for Federal-aid highway and highway safety con-
struction programs for future fiscal years. 
(h) INCREASE IN OBLIGATION LIMIT.—Limitations 
on obligations imposed by subsection (a) for a fiscal year 
shall be increased by an amount equal to the amount de-
termined pursuant to section 251(b)(1)(B)(ii)(I)(cc) of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal 
year. Any such increase shall be distributed in accordance 
with this section. 
(i) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRA-
TIVE EXPENSES.—Notwithstanding any other provision of 
law, the total amount of all obligations under section 
104(a) of title 23, United States Code, shall not exceed—
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(1) $390,000,000 for fiscal year 2004; 
(2) $395,000,000 for fiscal year 2005; 
(3) $395,000,000 for fiscal year 2006; 
(4) $395,000,000 for fiscal year 2007; 
(5) $395,000,000 for fiscal year 2008; and 
(6) $400,000,000 for fiscal year 2009. 
SEC. 1103. APPORTIONMENTS. 
(a) ADMINISTRATIVE EXPENSES.—Section 104(a) of 
title 23, United States Code, is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) for purposes de-
scribed in paragraph (2) $390,000,000 for fiscal 
year 2004, $395,000,000 for fiscal year 2005, 
$395,000,000 for fiscal year 2006, $395,000,000 for 
fiscal year 2007, $395,000,000 for fiscal year 2008, 
and $400,000,000 for fiscal year 2009. 
‘‘(2) USE OF FUNDS.—The amounts authorized 
to be appropriated by paragraph (1) are authorized 
for the following purposes: 
‘‘(A) To administer the provisions of law to 
be financed from appropriations for the Fed-
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eral-aid highway program and programs au-
thorized under chapter 2. 
‘‘(B) To make transfers of such sums as 
the Secretary determines to be appropriate to 
the Appalachian Regional Commission for ad-
ministrative activities associated with the Appa-
lachian development highway system.’’; 
(2) in paragraph (3) by striking ‘‘sum deducted 
under’’ and inserting ‘‘amounts authorized to be ap-
propriated by’’; and 
(3) in paragraph (4)—
(A) by striking ‘‘sums deducted under’’ 
and inserting ‘‘amounts authorized to be appro-
priated by’’; and 
(B) by striking ‘‘and the Federal Motor 
Carrier Safety Administration’’. 
(b) NATIONAL HIGHWAY SYSTEM.—Section 104(b) 
of such title is amended—
(1) by striking ‘‘the deduction authorized by 
subsection (a) and’’; and 
(2) in paragraph (1)(A)—
(A) by striking ‘‘$36,400,000 for each fis-
cal year’’ and inserting ‘‘$40,000,000 for fiscal 
year 2004, $40,000,000 for fiscal year 2005, 
$40,000,000 for fiscal year 2006, $50,000,000
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for fiscal year 2007, $50,000,000 for fiscal year 
2008, and $50,000,000 for fiscal year 2009’’; 
and 
(B) by striking ‘‘$18,800,000 for each of 
fiscal years 1998 through 2002’’ and inserting 
‘‘$20,000,000 
for 
fiscal 
year 
2004 
and 
$30,000,000 for each of fiscal years 2005 
through 2009’’. 
(c) CONFORMING AMENDMENTS.—Section 104 of 
such title is amended—
(1) in subsection (f)(1)—
(A) by striking ‘‘, after making the deduc-
tion authorized by subsection (a) of this sec-
tion,’’; and 
(B) by striking ‘‘remaining’’; and 
(2) in subsection (i) by striking ‘‘deducted’’ and 
inserting ‘‘authorized to be appropriated’’. 
(d) PUERTO RICO HIGHWAY PROGRAM.—Section 
1214(r) of the Transportation Equity Act for the 21st 
Century (112 Stat. 209; 117 Stat. 1114; 118 Stat. 1149) 
is amended—
(1) in paragraph (1) by striking ‘‘1101(a)(15) 
for each of fiscal years 1998 through 2005’’ and in-
serting ‘‘1101(a)(24) for each of fiscal years 2004
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through 2009 of the Transportation Equity Act: A 
Legacy for Users’’; and 
(2) in paragraph (2) by striking ‘‘1101(a)(15) 
of this Act’’ and inserting ‘‘1101(a)(24) of the 
Transportation Equity Act: A Legacy for Users’’. 
SEC. 1104. MINIMUM GUARANTEE. 
To be supplied. 
SEC. 1105. PROJECT APPROVAL AND OVERSIGHT. 
Section 106 of title 23, United States Code, is 
amended by striking subsection (h) and inserting the fol-
lowing: 
‘‘(h) OVERSIGHT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an oversight program to monitor the effective 
and efficient use of funds authorized to carry out 
this title. At a minimum, the program shall be re-
sponsive to all areas related to financial integrity 
and project delivery. 
‘‘(2) FINANCIAL INTEGRITY.—
‘‘(A) 
FINANCIAL
MANAGEMENT
SYS-
TEMS.—The Secretary shall perform annual re-
views that address elements of the State trans-
portation departments’ financial management 
systems that affect projects approved under 
subsection (a).
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‘‘(B) PROJECT
COSTS.—The Secretary 
shall develop minimum standards for estimating 
project costs and shall periodically evaluate the 
States’ practices for estimating project costs, 
awarding contracts, and reducing project costs. 
‘‘(C) RESPONSIBILITY OF THE STATES.—
The States are responsible for determining that 
subrecipients of Federal funds under this title 
have sufficient accounting controls to properly 
manage such Federal funds. The Secretary 
shall periodically review the States’ monitoring 
of subrecipients. 
‘‘(3) PROJECT DELIVERY.—The Secretary shall 
perform annual reviews that address elements of a 
State’s project delivery system, which includes one 
or more activities that are involved in the life cycle 
of a project from its conception to its completion. 
‘‘(4) RESPONSIBILITY
OF
THE
STATES.—The 
States are responsible for determining that sub-
recipients of Federal funds under this title have ade-
quate project delivery systems for projects approved 
under this section. The Secretary shall periodically 
review the States’ monitoring of subrecipients. 
‘‘(5) 
SPECIFIC
OVERSIGHT
RESPONSIBIL-
ITIES.—Nothing in this section shall affect or dis-
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charge any oversight responsibility of the Secretary 
specifically provided for under this title or other 
Federal law. In addition, the Secretary shall retain 
full oversight responsibilities for the design and con-
struction of all Appalachian development highways 
under section 14501 of title 40. 
‘‘(i) MAJOR PROJECTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision in this section, a recipient of Federal fi-
nancial assistance for a project under this title with 
an estimated total cost of $500,000,000 or more, or 
any other project in the discretion of the Secretary, 
shall submit to the Secretary a project management 
plan and an annual financial plan. 
‘‘(2) 
PROJECT
MANAGEMENT
PLAN.—The 
project management plan shall document the proce-
dures and processes in place to provide timely infor-
mation to the project decision makers to manage ef-
fectively the scope, costs, schedules, and quality, and 
the Federal requirements of the project and the role 
of the agency leadership and management team in 
the delivery of the project. 
‘‘(3) FINANCIAL
PLAN.—The financial plan 
shall be based on detailed estimates of the cost to 
complete the project. Annual updates shall be sub-