$6,000,000 for each of fiscal years 2005 through
2009.
(15) HIGH
PRIORITY
PROJECTS
PROGRAM.—
For the high priority projects program under section
117 of title 23, United States Code, $2,496,450,000
for fiscal year 2005, $2,244,550,000 for fiscal year
2006, 
$2,143,250,000 
for 
fiscal 
year 
2007,
$2,192,450,000 
for 
fiscal 
year 
2008, 
and
$2,050,450,000 for fiscal year 2009.
(16) FREIGHT INTERMODAL CONNECTOR PRO-
GRAM.—For the freight intermodal connector pro-
gram under section 1303 of this title, $421,000,000
for fiscal year 2005, $421,000,000 for fiscal year
2006, 
$421,000,000 
for 
fiscal 
year 
2007,
$421,000,000 
for 
fiscal 
year 
2008, 
and
$426,000,000 for fiscal year 2009.
(17) HIGH
RISK
RURAL
ROAD
SAFETY
IM-
PROVEMENT
PROGRAM.—For the high risk rural
road safety improvement program under section
1403 of this title, $105,000,000 for fiscal year 2005,
$110,000,000 for fiscal year 2006, $120,000,000 for
fiscal year 2007, $125,000,000 for fiscal year 2008,
and $130,000,000 for fiscal year 2009.
(18) PEDESTRIAN AND CYCLIST EQUITY—SAFE
ROUTES TO SCHOOL PROGRAM.—For the safe routes
to school program under section 1122(a) of this
title, 
$175,000,000 
for 
fiscal 
year 
2005,
$200,000,000 for fiscal year 2006, $200,000,000 for
fiscal year 2007, $200,000,000 for fiscal year 2008,
and $225,000,000 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:
(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
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-
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;
(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
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;
(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) or 0.932 in any case in which such
ratio is less than 0.932 (except that the higher ratio
shall not apply to the program under section 14501
of title 40, United States Code) by the sums author-
ized to be appropriated for such section (except in
the case of section 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
(3) or 0.932 in any case in which such ratio is less
than 0.932 (except that the higher ratio shall not
apply to the program under section 14501 of title
40, United States Code) 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
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
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—
(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) DEDUCTION
FOR
ADMINISTRATIVE
EX-
PENSES.—Whenever an apportionment is made of
the sums made available for expenditure on the sur-
face transportation program under section 133 for a
fiscal year, the Secretary shall deduct $390,000,000
for fiscal year 2004, $365,000,000 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 deducted
by paragraph (1) are authorized for the following
purposes:
‘‘(A) To administer the provisions of law to
be financed from appropriations for the Fed-
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.’’; and
(2) in paragraph (4) by striking ‘‘and the Fed-
eral 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
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) REPORT.—Section 104(j) of title 23, United
States Code, is amended by striking ‘‘submit to Congress
a report’’ and inserting ‘‘transmit to Congress a report,
and also make such report available to the public in a
user-friendly format via the Internet,’’.
(d) SET-ASIDES.—Section 104 of such title is amend-
ed by adding at the end the following:
‘‘(m) SET-ASIDES.—
‘‘(1) HIGHWAY USE TAX EVASION PROGRAM.—
Whenever an apportionment is made of the sums
made available for expenditure on the National
Highway System under section 103 for a fiscal year,
the Secretary shall set aside for highway use tax
evasion projects under section 143 of this title
$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.
‘‘(2) COMMONWEALTH OF PUERTO RICO HIGH-
WAY
PROGRAM.—Whenever an apportionment is
made of the sums made available for expenditure on
the National Highway System under section 103 for
a fiscal year, the Secretary shall set aside 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.
‘‘(3) DEPLOYMENT OF MAGNETIC LEVITATION
TRANSPORTATION PROJECTS.—Whenever an appor-
tionment is made of the sums made available for ex-
penditure on the National Highway System under
section 103 for a fiscal year, the Secretary shall set
aside for carrying out section 1118 of the Transpor-
tation Equity Act: A Legacy for Users, relating to
deployment of magnetic levitation transportation
projects, $15,000,000 for fiscal year 2005 and
$20,000,000 for each of fiscal years 2006 through
2009.
‘‘(4) CONGESTION PRICING PILOT PROGRAM.—
Whenever an apportionment is made of the sums
made available for expenditure on the congestion
mitigation and air quality improvement program
under section 149 for a fiscal year, the Secretary
shall set aside for the congestion pricing pilot pro-
gram under section 1209 of the Transportation Eq-
uity Act: A Legacy for Users $15,000,000 for fiscal
year 2004, $15,000,000 for fiscal year 2005,
$15,000,000 for fiscal year 2006, $15,000,000 for
fiscal year 2007, $15,000,000 for fiscal year 2008,
and $15,000,000 for fiscal year 2009.
‘‘(5) HIGHWAYS FOR LIFE PROGRAM.—When-
ever an apportionment is made of the sums made
available for expenditure on the Interstate mainte-
nance program under section 119 for a fiscal year,
the Secretary shall set aside for the Highways for
LIFE program under section 1504 of the Transpor-
tation Equity Act: A Legacy for Users $55,000,000
for fiscal year 2005 and $60,000,000 for each of fis-
cal years 2006 through 2009.
‘‘(6) CONSTRUCTION
OF
FERRY
BOATS
AND
FERRY TERMINAL FACILITIES.—Whenever an appor-
tionment is made of the sums made available for ex-
penditure on the National Highway System under
section 103 for a fiscal year, the Secretary shall set
aside for construction of ferry boats and ferry ter-
minal facilities under section 165 of this title
$60,000,000 for fiscal year 2004, $70,000,000 for
fiscal year 2005, $75,000,000 for fiscal year 2006,
$75,000,000 for fiscal year 2007, $75,000,000 for
fiscal year 2008, and $75,000,000 for fiscal year
2009.
‘‘(7) ITS DEPLOYMENT.—Whenever an appor-
tionment is made of the sums made available for ex-
penditure on the surface transportation program
under section 133 for a fiscal year, the Secretary
shall set aside for carrying out sections 5208 and
5209 of the Transportation Equity Act for the 21st
Century 
(112 
Stat. 
458; 
112 
Stat. 
460),
$100,000,000 for each of fiscal years 2004 and
2005.
‘‘(8) SAFETY INCENTIVE GRANTS FOR USE OF
SEAT BELTS.—Whenever an apportionment is made
of the sums made available for expenditure on the
surface transportation program under section 133
for a fiscal year, the Secretary shall set aside for
safety incentive grants for use of seat belts under
section 157 of this title $112,000,000 for each of
fiscal years 2004 and 2005.
‘‘(9) SAFETY INCENTIVES TO PREVENT OPER-
ATION OF MOTOR VEHICLES BY INTOXICATED PER-
SONS.—Whenever an apportionment is made of the
sums made available for expenditure on the surface
transportation program under section 133 for a fis-
cal year, the Secretary shall set aside for safety in-
centives to prevent operation of motor vehicles by in-
toxicated persons under section 163 of this title
$110,000,000 for each of fiscal years 2004 and
2005.
‘‘(10) TRANSPORTATION AND COMMUNITY AND
SYSTEM
PRESERVATION
PROGRAM.—Whenever an
apportionment is made of the sums made available
for expenditure on the surface transportation pro-
gram under section 133 for a fiscal year, the Sec-
retary shall set aside for the transportation and
community and system preservation program under
section 1221 of the Transportation Equity Act for
the 21st Century (23 U.S.C. 101 note) $25,000,000
for fiscal year 2004, $30,000,000 for fiscal year
2005, 
$35,000,000 
for 
fiscal 
year 
2006,
$35,000,000 for fiscal year 2007, and $35,000,000
for each of fiscal years 2008 and 2009.’’.
(e) CONFORMING AMENDMENTS.—Section 104 of
such title is amended—
(1) in subsection (b) by striking ‘‘set-aside au-
thorized by subsection (f)’’ and inserting ‘‘set-asides
authorized by subsections (f) and (m)’’;
(2) 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
(3) in subsection (i) by striking ‘‘deducted’’ and
inserting ‘‘authorized to be appropriated’’.
(f) 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 ‘‘authorized by
section 1101(a)(15) for each of fiscal years 1998
through 2005’’ and inserting ‘‘set aside by section
104(m)(2) of title 23, United States Code, for each
of fiscal years 2004 through 2009’’; and
(2) in paragraph (2) by striking ‘‘made avail-
able by section 1101(a)(15) of this Act’’ and insert-
ing ‘‘set aside by section 104(m)(2) of title 23,
United States Code,’’.
SEC. 1104. MINIMUM GUARANTEE.
(a) GENERAL RULE.—Section 105(a) of title 23,
United States Code, is amended—
(1) by striking ‘‘1998 through 2003’’ and in-
serting ‘‘2004 through 2009’’;
(2) by striking ‘‘and recreational trails’’ and in-
serting ‘‘recreational trails, coordinated border infra-
structure, freight intermodal connectors, safe routes
to school, highway safety improvement, and high
risk rural road safety improvement’’; and
(3) by inserting ‘‘(other than subsection (g))’’
after ‘‘under this section’’.
(b) TREATMENT OF FUNDS.—Section 105(c)(1) of
such title is amended—
(1) by striking ‘‘$2,800,000,000’’ and inserting
‘‘$2,870,000,000 
in 
fiscal 
year 
2004,
$2,941,750,000 in fiscal year 2005, $3,015,293,750
in fiscal year 2006, $3,090,676,094 in fiscal year
2007, $3,167,942,996 in fiscal year 2008, and
$3,247,141,571 in fiscal year 2009’’; and
(2) by striking ‘‘and recreational trails’’ each
place it appears and inserting ‘‘recreational trails,
coordinated border infrastructure, freight intermodal
connectors, safe routes to school, highway safety im-
provement, and high risk rural road safety improve-
ment’’.
(c) AUTHORIZATION.—Section 105(d) of such title is
amended by striking ‘‘1998 through 2003’’ and inserting
‘‘2004 through 2009’’.
(d) SPECIAL RULE.—Section 105(e) of such title is
amended to read as follows:
‘‘(e) SPECIAL RULE.—Notwithstanding any other
provision of this section, if, in any of fiscal years 2004
through 2009, the quotient obtained by dividing—
‘‘(1) a State’s percentage share of the total ap-
portionments for such fiscal year for programs re-
ferred to in subsection (a) (other than minimum
guarantee), by
‘‘(2) the percentage for such State listed in sub-
section (b),
is greater than 1.3, the Secretary shall allocate to the
State with the highest quotient the minimum apportion-
ment specified in subsection (a). The apportionments for
the programs referred to in subsection (a) for the State
with the highest quotient, estimated tax payments to the
Highway Trust Fund attributable to highway users re-
ferred to in subsection (f) for such State, and percentage
referred to in subsection (b) for such State shall be ex-
cluded from the computations required in subsection (f).’’.
(e) GUARANTEED
SPECIFIED
RETURN.—Section
105(f) of such title is amended—
(1) in the subsection heading by striking ‘‘OF
90.5’’ and inserting ‘‘SPECIFIED’’; and
(2) in paragraph (1) by striking ‘‘1999 through
2003’’ and inserting ‘‘2004 through 2009’’.
(f) EQUITY ADJUSTMENT.—Section 105 of such title
is further amended by adding at the end the following:
‘‘(g) EQUITY ADJUSTMENT.—
‘‘(1) IN
GENERAL.—For each of fiscal years
2004 through 2009, after making the allocations
under subsection (a), the Secretary shall allocate
among the States additional amounts sufficient to
ensure that no State receives an allocation under
this subsection and subsection (a) that in the aggre-
gate is less than the amount the State would have
received under subsection (a) had high priority
projects not been included among the list of pro-
grams referred to in subsection (a). Any such addi-
tional allocations shall be excluded from the com-
putations required in subsection (f).
‘‘(2) RATE
OF
RETURN.—For each of fiscal
years 2004 through 2009, the Secretary shall allo-
cate among the States amounts sufficient to ensure
that, for the aggregate of funds distributed under
subsection (a), paragraph (1) of this subsection, and
this paragraph, the rate of return, as defined in sub-
section (f)(1), is not less than 90.5. The special rule
in subsection (e) shall not apply to the calculation
made under this paragraph.’’.
(g) CONFORMING AMENDMENTS.—
(1) SECTION 131.—Section 131(m) of title 23,
United States Code, is amended by striking ‘‘in ac-
cordance with the program of projects approval
process of section 105’’ and inserting ‘‘in accordance
with the approval process of section 106’’.
(2) SECTION 140.—Section 140 of such title is
amended—
(A) in subsection (a) by striking ‘‘pro-
grams for projects as provided for in subsection
(a) of section 105 of this title’’ and inserting
‘‘project under this chapter’’; and
(B) in subsection (c) by striking ‘‘sub-
section 104(b)(3) of this title’’ and inserting
‘‘section 104(b)(3)’’.
(h) SCOPE ADJUSTMENT.—
(1) DETERMINATION
OF
SET-ASIDE.—Before
allocating funds provided to carry out the program
under section 1301 of this Act, the Secretary shall
set aside an amount sufficient to ensure that the
quotient obtained by dividing—
(A) the sum of—
(i) the amounts authorized for the
programs identified in section 105(a) of
title 23, United States Code,
(ii) the amounts authorized under sec-
tion 105(g) of such title, and
(iii) the amount apportioned under
this subsection, by
(B) the total contract authority authorized
for the Federal-aid highway program,
equals 0.926.
(2) APPORTIONMENT OF FUNDS.—The amount
set aside under paragraph (1) shall be added to the
amount authorized for the Surface Transportation
Program under section 104(b)(3)(A) of title 23,
United States Code, and shall be included in the cal-
culation of minimum guarantee under section 105(a)
of such title.
(3) RESTORATION.—The Secretary shall make
available such sums as may be necessary to restore
to the funds made available to carry out the pro-
gram under section 1301 an amount equal to the
amount set aside under paragraph (1).
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated out of the
Highway Trust Fund (other than the Mass Transit
Account) such sums as may be necessary to carry
out this subsection.
(5) 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.
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).
‘‘(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-
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-
mitted based on reasonable assumptions, as deter-
mined by the Secretary, of future increases in the
cost to complete the project.
‘‘(j) OTHER PROJECTS.—A recipient of Federal fi-
nancial assistance for a project under this title with an
estimated total cost of $100,000,000 or more that is not
covered by subsection (h) shall prepare an annual financial
plan. Annual financial plans prepared under this sub-
section shall be made available to the Secretary for review
upon the Secretary’s request.’’.
SEC. 1106. USE OF EXCESS FUNDS.
Section 106 of title 23, United States Code, is further
amended by adding at the end the following:
‘‘(k) USE OF EXCESS FUNDS.—
‘‘(1) AUDITS.—A State may audit projects
funded with amounts apportioned under sections
104 and 144 to determine whether any amounts ob-
ligated for a project are excess funds.
‘‘(2) PLANS FOR USE OF EXCESS FUNDS.—If a
State determines, after conducting an audit under
paragraph (1), that funds obligated for a project are
excess funds, the State may develop a plan for obli-
gating the funds for the design and construction
of—