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grants in accordance with this subsection. Funds author-
ized to carry out this subsection in a fiscal year shall be 
subject to a deduction not to exceed 5 percent for the nec-
essary costs of administering this subsection. 
‘‘(1) GENERAL PERFORMANCE GRANTS.—On or 
before December 31, 2003, and on or before each 
December 31 thereafter through December 31, 
2008, the Secretary shall make grants to States 
based upon the performance of their highway safety 
programs in the following categories: (i) motor vehi-
cle crash fatalities; (ii) alcohol-related crash fatali-
ties; and (iii) motorcycle, bicycle, and pedestrian 
crash fatalities. 
‘‘(A) DETERMINATIONS
BY
THE
SEC-
RETARY.—The Secretary, through a rulemaking 
proceeding, shall determine—
‘‘(i) measures for calculating and 
scoring performance in each category 
under this paragraph, using the data for 
the most recent calendar year for which 
the data are available from— 
‘‘(I) fatality data provided by the 
National Highway Traffic Safety Ad-
ministration; and
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‘‘(II) vehicle miles traveled deter-
mined by the Federal Highway Ad-
ministration. 
‘‘(ii) goals for achievement and annual 
progress in each category under this para-
graph that reflect the potential of each 
goal to save lives; and 
‘‘(iii) a weighting system for all of the 
goals that reflects the relative potential of 
each goal to save lives. 
‘‘(B) AMOUNT OF GRANTS.—The Secretary 
shall determine the amount of funds available 
to a State in a fiscal year for grants under this 
paragraph, based on the State’s achievement or 
annual progress in each of the categories under 
this paragraph, using the measures, goals and 
weighting system established under this para-
graph, the amount appropriated to carry out 
the grants for such fiscal year, and the ratio 
that the funds apportioned to the State under 
section 402(c) for such fiscal year bears to the 
funds apportioned under section 402(c) for such 
fiscal year to all the States that qualify for a 
grant for such fiscal year. 
‘‘(2) SAFETY BELT PERFORMANCE GRANTS.—
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‘‘(A) PRIMARY SAFETY BELT USE LAW.—
‘‘(i) For fiscal years 2004 and 2005, 
the Secretary shall make a grant to each 
State that enacted, and is enforcing, a pri-
mary safety belt use law for all passenger 
motor vehicles that became effective by De-
cember 31, 2002. 
‘‘(ii) For each of fiscal years 2004 
through 2009, the Secretary shall, after 
making grants under paragraph (2)(A)(i) 
of this subsection, make a one-time grant 
to each State that either enacts for the 
first time after December 31, 2002, and 
has in effect a primary safety belt use law 
for all passenger motor vehicles, or, in the 
case of a State that does not have such a 
primary safety belt use law, has a State 
safety belt use rate in the preceding fiscal 
year of at least 90 percent, as measured 
under criteria determined by the Secretary. 
‘‘(iii) Of the funds authorized for 
grants 
under 
this 
subsection, 
$100,000,000 in each of fiscal years 2004 
through 2009 shall be available for grants 
under this paragraph. The amount of a
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grant available to a State in each of fiscal 
years 2004 and 2005 under paragraph 
(2)(A)(i) of this subsection shall be equal 
to one-half of the amount of funds appor-
tioned to the State under subsection (c) of 
this section for fiscal year 2003. The 
amount of a grant available to a State in 
fiscal year 2004 or in a subsequent fiscal 
year under paragraph (2)(A)(ii) of this 
subsection shall be equal to five times the 
amount apportioned to the State for fiscal 
year 2003 under subsection (c). Notwith-
standing subsection (d) of this section, the 
Federal share payable for grants under 
this paragraph shall be 100 percent. If the 
total amount of grants under paragraph 
(2)(A)(ii) for a fiscal year exceeds the 
amount of funds available in the fiscal 
year, grants shall be made to each eligible 
State, in the order in which its primary 
safety belt use law became effective or its 
safety belt use rate reached 90 percent, 
until the funds for the fiscal year are ex-
hausted. A State that does not receive a 
grant for which it is eligible in a fiscal year
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shall receive the grant in the succeeding 
fiscal year so long as its law remains in 
effect or its safety belt use rate remains 
at or above 90 percent. If the total amount 
of grants under this paragraph for a fiscal 
year is less than the amount available in 
the fiscal year, the Secretary shall use any 
funds that exceed the total amount for 
grants under paragraph (2)(B) of this sub-
section. 
‘‘(B) SAFETY BELT USE RATE.—
‘‘(i) On or before December 31, 2003, 
and on or before each December 31 there-
after through December 31, 2008, the Sec-
retary shall make grants to States based 
upon their safety belt use rate in the pre-
ceding fiscal year. 
‘‘(ii) The Secretary, through a rule-
making, shall determine measures for cal-
culating and scoring the performance for 
safety belt use rates, using data for the 
most recent calendar year for which State 
safety belt use rate data are available from 
observational safety belt surveys conducted
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in accordance with criteria established by 
the Secretary. 
‘‘(iii) Of the funds authorized for 
grants under this subsection, $25,000,000 
for fiscal year 2004, $27,000,000 for fiscal 
year 2005, $29,000,000 for fiscal year 
2006, $31,000,000 for fiscal year 2007, 
$34,000,000 for fiscal year 2008, and 
$36,000,000 for fiscal year 2009 shall be 
available for safety belt use rate grants 
under this paragraph. The Secretary shall 
determine the amount of funds available to 
a State in a fiscal year based on the 
State’s achievement or annual progress in 
its safety belt use rate, the amount appro-
priated to carry out the grants for such 
fiscal year, and the ratio that the funds 
apportioned to the State under section 
402(c) for such fiscal year bears to the 
funds apportioned under section 402(c) for 
such fiscal year to all the States that qual-
ify for a grant for such fiscal year. Not-
withstanding subsection (d) of this section, 
the Federal share payable for grants under 
this paragraph shall be 100 percent.
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‘‘(C) DEFINITION.—In this paragraph, 
passenger motor vehicle means a passenger car, 
pickup truck, van, minivan, or sport utility ve-
hicle, with a gross vehicle weight rating of less 
than 10,000 pounds. 
‘‘(3) USE OF GRANTS.—A State allocated an 
amount for a grant under paragraph (1)(A) of this 
subsection shall use the amount for activities eligible 
for assistance under this section, except that it may 
use up to 50 percent of the amount for activities eli-
gible under section 150 of this title and consistent 
with the State’s strategic highway safety plan under 
section 151 of this title that are not otherwise eligi-
ble for assistance under this section. A State allo-
cated an amount for a grant under paragraph (2)(A) 
of this subsection may use the amount for activities 
eligible for assistance under this section or for activi-
ties eligible under section 150 of this title and con-
sistent with the State’s strategic highway safety plan 
under section 151 of this title that are not otherwise 
eligible for assistance under this section. A State al-
located an amount for a grant under paragraph 
(2)(B) of this subsection, including any amount 
transferred under paragraph (2)(A) of this sub-
section, shall use the amount for safety belt use pro-
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grams eligible for assistance under this section, ex-
cept that it may use up to 50 percent of the amount 
for activities eligible under section 150 of this title 
and consistent with the State’s strategic highway 
safety plan under section 151 of this title that are 
not otherwise eligible for assistance under this sec-
tion.’’. 
(b) IMPAIRED DRIVING GRANTS.—Section 402 of 
title 23, United States Code, is amended by adding at the 
end the following subsection: 
‘‘(l)(1) IMPAIRED DRIVING GRANTS.—In addition to 
other grants authorized by this section and subject to the 
provisions of this subsection, the Secretary shall design 
and implement a discretionary grant program to develop, 
demonstrate, and evaluate comprehensive State programs 
to reduce impaired driving in States with a high number 
of alcohol-related fatalities and a high rate of alcohol-re-
lated fatalities relative to vehicle miles traveled and popu-
lation. 
‘‘(2) PROCEDURE.—The Secretary shall establish a 
procedure for submitting grant applications under this 
subsection, and shall select from among the applicants the 
States to participate in the program.
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‘‘(3) USE OF GRANTS.—A grant to a State under this 
subsection shall be used only to carry out the State’s pro-
gram under paragraph (1). 
‘‘(4) ADMINISTRATIVE
EXPENSES.—Funds author-
ized to be appropriated to carry out this subsection in a 
fiscal year shall be subject to a deduction not to exceed 
10 percent for the costs of evaluating the programs and 
administering the provisions of this subsection. 
‘‘(5) FEDERAL SHARE.—Notwithstanding subsection 
(d) of this section, the Federal share payable for a grant 
under this subsection shall be—
‘‘(A) 100 percent in the first and second fiscal 
years in which the State receives a grant; 
‘‘(B) 75 percent in the third and fourth fiscal 
years in which the State receives a grant; and 
‘‘(C) 50 percent in the fifth and sixth fiscal 
years in which the State receives a grant.’’. 
SEC. 2002. HIGHWAY SAFETY RESEARCH AND DEVELOP-
MENT. 
Section 403(a) (Authority of the Secretary) of title 
23, United States Code, is amended by adding the fol-
lowing paragraphs at the end: 
‘‘(4) EMERGENCY MEDICAL SERVICES.—In ad-
dition to the authority provided under this sub-
section, the Secretary is authorized to use funds ap-
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propriated to carry out this section to enhance co-
ordination among Federal agencies involved with
State, local, tribal, and community-based emergency 
medical services. In exercising this authority, the 
Secretary may coordinate with State and local gov-
ernments, the Bureau of Indian Affairs on behalf of 
Indian tribes, private industry, and other interested 
parties; collect and exchange emergency medical 
services data and information; examine emergency 
medical services needs, best practices, and related 
technology; and develop emergency medical services 
standards and guidelines, and plans for the assess-
ment of emergency medical services systems. 
‘‘(5) INTERNATIONAL COOPERATION.—In addi-
tion to the authority provided under this subsection, 
the Secretary is authorized to use funds appro-
priated to carry out this section to participate and 
cooperate in international activities to enhance high-
way safety by such means as exchanging safety in-
formation; conducting safety research; and exam-
ining safety needs, best practices, and new tech-
nology. 
‘‘(6) NATIONAL MOTOR VEHICLE CRASH CAUSA-
TION
SURVEY.—In addition to the authority pro-
vided under this subsection, the Secretary is author-
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ized to use funds appropriated to carry out this sec-
tion to develop and conduct a nationally representa-
tive survey to collect on-scene motor vehicle crash 
causation data.’’. 
SEC. 2003. EMERGENCY MEDICAL SERVICES. 
(a) FEDERAL COORDINATION AND ENHANCED SUP-
PORT OF EMERGENCY MEDICAL SERVICES.—Chapter 4 of 
title 23, United States Code, is amended by revising sec-
tion 407 to read as follows: 
‘‘§ 407. Federal coordination and enhanced support of 
emergency medical services 
‘‘(a) FEDERAL INTERAGENCY COMMITTEE ON EMER-
GENCY MEDICAL SERVICES.—
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation and the Secretary of Homeland Security 
Through the Under Secretary for Emergency Pre-
paredness and Response, in consultation with the 
Secretary of Health and Human Services, shall es-
tablish a Federal Interagency Committee on Emer-
gency Medical Services (referred to as the ‘Inter-
agency Committee on EMS’) that shall—
‘‘(A) assure coordination among the Fed-
eral agencies involved with State, local, tribal or 
regional emergency medical services and 9–1–1 
systems;
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‘‘(B) identify State, local, tribal or regional 
emergency medical services and 9–1–1 needs; 
‘‘(C) recommend new or expanded pro-
grams, including grant programs, for improving 
State, local, tribal or regional emergency med-
ical services and implementing improved EMS 
communications technologies, including wireless 
E9–1–1; 
‘‘(D) identify ways to streamline the proc-
ess through which Federal agencies support 
State, local, tribal or regional emergency med-
ical services; 
‘‘(E) assist State, local, tribal or regional 
emergency medical services in setting priorities 
based on identified needs; and 
‘‘(F) advise, consult with and make rec-
ommendations on matters relating to the imple-
mentation of the coordinated State emergency 
medical services program established under sub-
section (b) of this section. 
‘‘(2) MEMBERSHIP.—The membership of the 
Interagency Committee on EMS shall consist of the 
following officials, or their designees: 
‘‘(A) Administrator, National Highway 
Traffic SafetyAdministration.
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‘‘(B) 
Director, 
Preparedness 
Division, 
Emergency Preparedness and Response Direc-
torate, Department of Homeland Security. 
‘‘(C) Administrator, Health Resources and 
Services Administration. 
‘‘(D) Director, Centers for Disease Control 
and Prevention. 
‘‘(E) Administrator, United States Fire 
Administration, Emergency Preparedness and 
Response Directorate, Department of Homeland 
Security. 
‘‘(F) Director, Center for Medicare and 
Medicaid Services. 
‘‘(G) Undersecretary of Defense for Per-
sonnel and Readiness, Department of Defense. 
‘‘(H) Assistant Secretary for Public Health 
Emergency 
Preparedness, 
Department 
of 
Health and Human Services. 
‘‘(I) Director, Indian Health Service, De-
partment of Health and Human Services. 
‘‘(J) Chief, Wireless Telecom Bureau, Fed-
eral Communications Commission. 
‘‘(K) A representative of any other Federal 
agency identified by the Secretary of Transpor-
tation or the Secretary of Homeland Security
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through the Under Secretary for Emergency 
Preparedness and Response, in consultation 
with the Secretary of Health and Human Serv-
ices, as having a significant role in the purposes 
of the Interagency Committee on EMS. 
‘‘(3) ADMINISTRATION.—The National Highway 
Traffic Safety Administration, in cooperation with 
the Director, Preparedness Division, Emergency 
Preparedness and Response Directorate, Depart-
ment of Homeland Security, shall provide adminis-
trative support to the Interagency Committee on 
EMS, including scheduling meetings, setting agen-
das, keeping minutes and records, and producing re-
ports. 
‘‘(4) LEADERSHIP.—The members of the Inter-
agency Committee on EMS shall select a chairperson 
of the Committee annually. 
‘‘(5) MEETINGS.— The Interagency Committee 
on EMS shall meet as frequently as determined nec-
essary by the chairperson of the Committee. 
‘‘(6) 
ANNUAL
REPORTS.—The 
Interagency 
Committee on EMS shall prepare an annual report 
to Congress on the Committee’s activities, actions, 
and recommendations.
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‘‘(b) COORDINATED NATIONWIDE EMERGENCY MED-
ICAL SERVICES PROGRAM.—
‘‘(1) GENERAL AUTHORITY.— The Secretary of 
Transportation, through the Administrator of the 
National Highway Traffic Safety Administration, is 
authorized and directed to cooperate with other Fed-
eral departments and agencies, and may assist State 
and local governments and EMS organizations, both 
fire-based and otherwise, private industry, and other 
interested parties, to ensure the development and 
implementation of a coordinated nationwide emer-
gency 
medical 
services 
program 
designed 
to 
strengthen transportation safety and public health 
and to implement improved EMS communication 
systems including 9–1–1. For the purposes of this 
section, the term ‘State’ means any one of the fifty 
States, the District of Columbia, Puerto Rico, the 
Virgin Islands, Guam, American Samoa, the Com-
monwealth of the Northern Mariana Islands, and 
the Secretary of the Interior on behalf of Indian 
tribes. 
‘‘(2) COORDINATED STATE EMERGENCY MED-
ICAL SERVICES PROGRAM.—Each State shall estab-
lish a program, approved by the Secretary, to coordi-
nate the emergency medical services and resources
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deployed throughout the State, so as to ensure im-
proved EMS communication systems including 9–1–
1, utilization of established best practices in system 
design and operations, implementation of quality as-
surance programs, and incorporation of data collec-
tion and analysis programs that facilitate system de-
velopment and data linkages with other systems and 
programs useful to emergency medical services. 
‘‘(3) ADMINISTRATION OF STATE PROGRAMS.—
The Secretary may not approve a coordinated State 
emergency medical services program under this sub-
section unless the program—
‘‘(A) provides that the Governor of the 
State is responsible for its administration 
through a State office of emergency medical 
services that has adequate powers and is suit-
ably equipped and organized to carry out such 
program and coordinates such program with the 
highway safety office of the State; and 
‘‘(B) authorizes political subdivisions of the 
State to participate in and receive funds under 
such program, consistent with goal of achieving 
statewide coordination of emergency medical 
services and 9–1–1 activities.
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‘‘(4) USE
OF
FUNDS; ADMINISTRATIVE
EX-
PENSES; APPORTIONMENTS.—Funds authorized to 
be appropriated to carry out this subsection shall be 
used to aid the States in conducting coordinated 
emergency medical services and 9–1–1 programs 
that are in accordance with the provisions of para-
graph (2). Such funds shall be subject to a deduc-
tion not to exceed 10 percent for the necessary costs 
of administering the provisions of this subsection, 
and the remainder shall be apportioned among the 
States. Such funds shall be apportioned as follows: 
75 percent in the ratio that the population of each 
State bears to the total population of all the States, 
as shown by the latest available Federal census, and 
25 percent in the ratio that the public road mileage 
in each State bears to the total public road mileage 
in all States. For the purpose of this subsection, a 
‘public road’ means any road under the jurisdiction 
of and maintained by a public authority and open to 
public travel. Public road mileage as used in this 
subsection shall be determined as of the end of the 
calendar year prior to the year in which the funds 
are apportioned and shall be certified to by the Gov-
ernor of the State and subject to approval by the 
Secretary. The annual apportionment to each State
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shall not be less than one-half of 1 percent of the 
total apportionment, except that the apportionment 
to the Secretary of the Interior on behalf of Indian 
tribes shall not be less than three-fourths of 1 per-
cent of the total apportionment, and the apportion-
ments to the Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern 
Mariana Islands shall not be less than one-quarter 
of 1 percent of the total apportionment. 
‘‘(5) CONTRACT
AUTHORITY.—The provisions 
contained in section 402(d) of this chapter shall 
apply to this subsection. 
‘‘(6) FEDERAL SHARE.—The Federal share of 
the cost of a project or program funded under this 
subsection shall be 80 percent. 
‘‘(7) APPLICATION IN INDIAN COUNTRY.—
‘‘(A) USE OF TERMS.—For the purpose of 
application of this subsection in Indian country, 
the terms ‘State’ and ‘Governor of the State’ 
include the Secretary of the Interior and the 
term ‘political subdivisions of the State’ in-
cludes an Indian tribe. 
‘‘(B) INDIAN COUNTRY DEFINED.—In this 
subsection, the term ‘Indian country’ means—
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‘‘(i) all land within the limits of any 
Indian reservation under the jurisdiction of 
the United States, notwithstanding the 
issuance of any patent and including 
rights-of-way running through the reserva-
tion; 
‘‘(ii) all dependent Indian commu-
nities within the borders of the United 
States, whether within the original or sub-
sequently acquired territory thereof and 
whether within or without the limits of a 
State; and 
‘‘(iii) all Indian allotments, the Indian 
titles to which have not been extinguished, 
including rights-of-way running through 
such allotments.’’. 
(b) The item relating to section 407 in the analysis 
of chapter 4 of title 23, United States Code, is amended 
to read as follows:
‘‘407. Federal coordination and enhanced support of emergency medical serv-
ices.’’.
SEC. 2004. STATE TRAFFIC SAFETY INFORMATION SYSTEM 
IMPROVEMENTS 
(a) Chapter 4 of title 23, United States Code, is 
amended by adding the following section:
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‘‘§ 412. State traffic safety information system im-
provements 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—Subject 
to the requirements of this section, the Secretary 
shall make grants to States that adopt and imple-
ment effective programs to—
‘‘(A) improve the timeliness, accuracy, 
completeness, uniformity, integration and acces-
sibility of the safety data of the State that is 
needed to identify priorities for national, State, 
and local highway and traffic safety programs; 
‘‘(B) evaluate the effectiveness of efforts to 
make such improvements; 
‘‘(C) link these State data systems, includ-
ing traffic records, with other data systems 
within the State, such as systems that contain 
medical, roadway and economic data; and 
‘‘(D) improve the compatibility and inter-
operability of the data systems of the State 
with national data systems and data systems of 
other States and enhance the ability of the Sec-
retary to observe and analyze national trends 
in crash occurrences, rates, outcomes, and cir-
cumstances. Recipient States may use such 
grants only to implement such programs.
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‘‘(2) MODEL DATA ELEMENTS.—The Secretary, 
in consultation with States and other appropriate 
parties, shall determine the model data elements 
necessary to observe and analyze State and national 
trends in crash occurrences, rates, outcomes, and 
circumstances. In order to become eligible for a 
grant under this section, a State shall certify to the 
Secretary the State’s adoption and use of such 
model data elements. 
‘‘(3) MAINTENANCE
OF
EFFORT.—No grant 
may be made to a State under this section in any 
fiscal year unless the State enters into such agree-
ments with the Secretary as the Secretary may re-
quire ensuring that the State will maintain its ag-
gregate expenditures from all other sources for high-
way safety data programs at or above the average 
level of such expenditures in the 2 fiscal years pre-
ceding the date of enactment of this Act. 
‘‘(4) FEDERAL SHARE.—The Federal share of 
the cost of adopting and implementing in a fiscal 
year a program of a State pursuant to paragraph 
(1) shall not exceed 80 percent. 
‘‘(b) FIRST-YEAR GRANTS.—
‘‘(1) ELIGIBILITY.—To be eligible for a first-
year grant under this section in a fiscal year, a
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State must demonstrate to the satisfaction of the 
Secretary that the State has—
‘‘(A) established a highway safety data and 
traffic records coordinating committee with a 
multidisciplinary membership that includes, 
among others, managers, collectors, and users 
of traffic records and public health and injury 
control data systems; and 
‘‘(B) developed a multiyear highway safety 
data and traffic records system strategic plan 
that addresses existing deficiencies in the 
State’s highway safety data and traffic records 
system and is approved by the highway safety 
data and traffic records coordinating committee 
and—
‘‘(i) specifies how existing deficiencies 
in the State’s highway safety data and 
traffic records system were identified; 
‘‘(ii) prioritizes, based on the identi-
fied highway safety data and traffic 
records system deficiencies, the highway 
safety data and traffic records system 
needs and goals of the State, including the 
activities under subsection (a)(1);
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‘‘(iii) 
identifies 
performance-based 
measures by which progress toward those 
goals will be determined; 
‘‘(iv) specifies how the grant funds 
and any other funds of the State will be 
used to address needs and goals identified 
in the multiyear plan; and 
‘‘(v) includes a current report on the 
progress in implementing the multiyear 
plan that documents progress toward the 
specified goals. 
‘‘(2) GRANT AMOUNTS.—The amount of a first-
year grant to a State for a fiscal year shall equal an 
amount determined by multiplying—
‘‘(A) the amount appropriated to carry out 
this section for such fiscal year; by—
‘‘(B) the ratio that the funds apportioned 
to the State under section 402 of this chapter 
for fiscal year 2003 bears to the funds appor-
tioned to all States under section 402 for fiscal 
year 2003; except that no State eligible for a 
grant under this section shall receive less than 
$300,000. 
‘‘(c) SUCCEEDING-YEAR GRANTS.—
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‘‘(1) ELIGIBILITY.—A State shall be eligible for 
a grant under this subsection in a fiscal year suc-
ceeding the first fiscal year in which the State re-
ceives a grant under subsection (b) if the State, to 
the satisfaction of the Secretary—
‘‘(A) submits an updated multiyear plan 
that meets the requirements of subsection 
(b)(1)(B); 
‘‘(B) certifies that its highway safety data 
and traffic records coordinating committee con-
tinues to operate and supports the multiyear 
plan; 
‘‘(C) specifies how the grant funds and any 
other funds of the State will be used to address 
needs and goals identified in the multiyear plan; 
‘‘(D) demonstrates measurable progress to-
ward achieving the goals and objectives identi-
fied in the multiyear plan; and 
‘‘(E) includes a current report on the 
progress in implementing the multiyear plan. 
‘‘(2) GRANT AMOUNTS.—The amount of a suc-
ceeding year grant made to a State for a fiscal year 
under this paragraph shall equal an amount deter-
mined by multiplying—
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‘‘(A) the amount appropriated to carry out 
this section for such fiscal year; by 
‘‘(B) the ratio that the funds apportioned 
to the State under section 402 for fiscal year 
2003 bears to the funds apportioned to all 
States under section 402 for fiscal year 2003; 
except that no State eligible for a grant under 
this paragraph shall receive less than $500,000. 
‘‘(d) ADMINISTRATIVE EXPENSES.—Funds author-
ized to be appropriated to carry out this section in a fiscal 
year shall be subject to a deduction not to exceed 5 percent 
for the necessary costs of administering the provisions of 
this section. 
‘‘(e) APPLICABILITY OF CHAPTER 1.—The provisions 
contained in section 402(d) shall apply to this section.’’. 
(b) The analysis of chapter 4 of title 23, United 
States Code, is amended by inserting the following at the 
end:
‘‘412. State traffic safety information system improvements.’’.
SEC. 2005. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated out of the Highway Trust Fund 
(other than the Mass Transit Account) for the National 
Highway Traffic Safety Administration: 
(1) CONSOLIDATED
STATE
HIGHWAY
SAFETY 
PROGRAMS.—
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(A) To carry out the State and Community 
Highway Safety Grant Program under section 
402 of title 23, United States Code, except for 
subsections (k) and (l), $162,000,000 for fiscal 
year 2004, $167,000,000 for fiscal year 2005, 
$172,000,000 
for 
fiscal 
year 
2006, 
$177,000,000 
for 
fiscal 
year 
2007, 
$183,000,000 
for 
fiscal 
year 
2008, 
and 
$189,000,000 for fiscal year 2009. 
(B) To carry out the performance grant 
programs under subsection (k) of section 402 of 
title 23, United States Code, $175,000,000 for 
fiscal year 2004, $179,000,000 for fiscal year 
2005, $183,000,000 for fiscal year 2006, 
$189,000,000 
for 
fiscal 
year 
2007, 
$195,000,000 
for 
fiscal 
year 
2008, 
and 
$201,000,000 for fiscal year 2009. 
(C) To carry out the impaired driving 
grants under subsection (l) of section 402 of 
title 23, United States Code, $50,000,000 for 
each of fiscal years 2004 through 2009. 
(2) HIGHWAY SAFETY RESEARCH AND DEVEL-
OPMENT.—To carry out the highway safety research 
and development program under section 403 of title 
23, United States Code, $88,452,000 for fiscal year
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2004, 
$90,000,000 
for 
fiscal 
year 
2005, 
$92,000,000 for fiscal year 2006, $94,000,000 for 
fiscal year 2007, $96,000,000 for fiscal year 2008, 
and $99,000,000 for fiscal year 2009. 
(3) EMERGENCY MEDICAL SERVICES GRANTS.—
To carry out section 407 of title 23, United States 
Code, $10,000,000 for each of fiscal years 2004 
through 2009. 
(4) STATE TRAFFIC SAFETY INFORMATION SYS-
TEM IMPROVEMENTS GRANTS.—To carry out section 
412 of title 23, United States Code, $50,000,000 for 
each of fiscal years 2004 through 2009. 
(5) NATIONAL
DRIVER
REGISTER.—To carry 
out chapter 303 (National Driver Register) of title 
49, United States Code, $3,600,000 for fiscal year 
2004, and $4,000,000 for each of fiscal years 2005 
through 2009. 
(b) ALLOCATIONS.—
(1) EMERGENCY
MEDICAL
SERVICES
ACTIVI-
TIES.—Out of amounts appropriated pursuant to 
subsection (a)(2), the Secretary may use $2,226,000 
in each fiscal year to carry out paragraph (4) of sec-
tion 403(a) of title 23, United States Code. 
(2) 
INTERNATIONAL
COOPERATION
ACTIVI-
TIES.—Out of amounts appropriated pursuant to
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subsection (a)(2), the Secretary may use $200,000 
in each fiscal year to carry out paragraph (5) of sec-
tion 403(a) of title 23, United States Code. 
(3) NATIONAL MOTOR VEHICLE CRASH CAUSA-
TION
SURVEY.—Out of the amounts appropriated 
pursuant to subsection (a)(2), the Secretary may use 
$10,000,000 in each fiscal year to carry out para-
graph (6) of section 403(a) of title 23, United 
States Code. 
(c) APPLICABILITY
OF TITLE 23.—(1) Amounts 
made available under subsection (a)(2) shall be available 
for obligation in the same manner as if such funds were 
apportioned under chapter 1 of title 23, United States 
Code. 
(2) Notwithstanding section 402(d) of title 23, 
United States Code, the funds authorized by subsection 
(a)(1) that are apportioned or allocated in a State shall 
remain available for obligation in that State for a period 
of two years after the last day of the fiscal year for which 
the funds are authorized. Any amounts so apportioned or 
allocated that remain unobligated at the end of that period 
shall lapse. 
SEC. 2006. REPEAL OF OBSOLETE PROVISIONS OF TITLE 23. 
(a) REPEAL OF OBSOLETE PROVISIONS.—Sections 
406 and 408 of title 23, United States Code, are repealed.
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(b) CONFORMING AMENDMENT.—The items relating 
to sections 406 and 408 in the analysis of chapter 4 of 
title 23, United States Code, are deleted. 
TITLE III—FEDERAL TRANSIT 
ADMINISTRATION PROGRAMS 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘Federal Public Trans-
portation Act of 2003’’. 
SEC. 3002. UPDATED TERMINOLOGY; AMENDMENTS TO 
TITLE 49, UNITED STATES CODE. 
(a) UPDATED TERMINOLOGY.—Chapter 53 of title 
49, United States Code, including the chapter analysis, 
is amended by striking ‘‘mass’’ each place it appears be-
fore ‘‘transportation’’ and inserting ‘‘public’’, except in 
sections 5301(f), 5302(a)(7), 5315, 5323(a)(1), and 
5323(a)(1)(B). 
(b) AMENDMENTS TO TITLE 49.—Except as other-
wise specifically provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision of law, the 
reference shall be considered to be made to a section or 
other provision of title 49, United States Code. 
SEC. 3003. POLICIES, FINDINGS, AND PURPOSES. 
(a) IN GENERAL.—Section 5301(a) is amended to 
read as follows:
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‘‘(a) DEVELOPMENT AND REVITALIZATION OF PUB-
LIC TRANSPORTATION SYSTEMS.—It is in the economic 
interest of the United States to foster the development and 
revitalization of public transportation systems that maxi-
mize the efficient, secure, and safe mobility of individuals, 
and minimize environmental impacts and reliance on for-
eign oil.’’. 
(b) 
PRESERVING
THE
ENVIRONMENT.—Section 
5301(e) is amended by—
(1) striking ‘‘an urban’’ and inserting ‘‘a’’; and 
(2) striking ‘‘under sections 5309 and 5310 of 
this title’’. 
(c) GENERAL PURPOSES.—Section 5301(f) is amend-
ed—
(1) in paragraph (1) by—
(A) striking ‘‘mass’’ after ‘‘improved’’ and 
inserting ‘‘public’’; and 
(B) striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
(2) in paragraphs (2) and (3) by—
(A) 
striking 
‘‘urban 
mass’’ 
after 
‘‘areawide’’ and inserting ‘‘public’’, and
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(B) striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
and 
(3) in paragraph (5), by striking ‘‘urban mass’’ 
and inserting ‘‘public’’. 
SEC. 3004. DEFINITIONS. 
(a) IN GENERAL.—Section 5302 is amended to read 
as follows:
‘‘§ 5302. Definitions 
‘‘(a) IN GENERAL.—In this chapter, the following 
definitions apply: 
‘‘(1) ‘access to jobs project’ means a project re-
lating to the development and maintenance of trans-
portation services designed to transport welfare re-
cipients and low-income individuals to and from jobs 
and activities related to their employment, includ-
ing—
‘‘(A) transportation projects to finance 
planning, capital and operating costs of pro-
viding access to jobs under this chapter; 
‘‘(B) promoting public transportation by 
low-income workers;
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‘‘(C) promoting the use of transit vouchers 
for welfare recipients and low-income individ-
uals; and 
‘‘(D) promoting the use of employer-pro-
vided transportation, including the transit pass 
benefit program under section 132 of the Inter-
nal Revenue Code of 1986. 
‘‘(1a) ‘capital project’ means a project for—
‘‘(A) acquiring, constructing, supervising, 
or inspecting equipment or a facility for use in 
public transportation, expenses incidental to the 
acquisition or construction (including designing, 
engineering, location surveying, mapping, and 
acquiring rights-of-way), payments for the cap-
ital portions of rail trackage rights agreements, 
transit-related intelligent transportation sys-
tems, relocation assistance, acquiring replace-
ment housing sites, and acquiring, constructing, 
relocating, and rehabilitating replacement hous-
ing; 
‘‘(B) rehabilitating a bus; 
‘‘(C) remanufacturing a bus; 
‘‘(D) overhauling rail rolling stock; 
‘‘(E) preventive maintenance;
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‘‘(F) leasing equipment or a facility for use 
in public transportation, subject to regulations 
that the Secretary prescribes limiting the leas-
ing arrangements to those that are more cost-
effective than purchase or construction; 
‘‘(G) a public transportation improvement 
that enhances economic development or incor-
porates private investment, including commer-
cial and residential development, pedestrian and 
bicycle access to a public transportation facility, 
and the renovation and improvement of historic 
transportation facilities, because the improve-
ment enhances the effectiveness of a public 
transportation project and is related physically 
or functionally to that public transportation 
project, or establishes new or enhanced coordi-
nation between public transportation and other 
transportation, and provides a fair share of rev-
enue for public transportation that will be used 
for public transportation—
‘‘(i) including property acquisition, 
demolition of existing structures, site prep-
aration, utilities, building foundations, 
walkways, open space, safety and security 
equipment and facilities (including light-
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ing, surveillance and related intelligent 
transportation system applications), facili-
ties that incorporate community services 
such as daycare or health care, and a cap-
ital project for, and improving, equipment 
or a facility for an intermodal transfer fa-
cility or transportation mall, except that a 
person making an agreement to occupy 
space in a facility under this subparagraph 
shall pay a reasonable share of the costs of 
the facility through rental payments and 
other means; and 
‘‘(ii) excluding construction of a com-
mercial revenue-producing facility or a part 
of a public facility not related to public 
transportation; 
‘‘(H) the introduction of new technology, 
through innovative or improved products, into 
public transportation; 
‘‘(I) the provision of nonfixed route para-
transit transportation services in accordance 
with section 223 of the Americans with Disabil-
ities Act of 1990, but only for grant recipients 
that are in compliance with applicable require-
ments of that Act, including both fixed route
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and demand responsive service, and only for 
amounts not to exceed 10 percent of such 
recipient‘s annual formula apportionment under 
sections 5307 and 5311; 
‘‘(J) crime prevention and security— 
‘‘(i) including—
‘‘(I) projects to refine and de-
velop security and emergency response 
plans; 
‘‘(II) projects aimed at detecting 
chemical and biological agents in pub-
lic transportation; 
‘‘(III) the conduct of emergency 
response drills with public transpor-
tation agencies and local first re-
sponse agencies; or 
‘‘(IV) security training for public 
transportation employees; but, 
‘‘(ii) excluding all expenses related to 
operations, except for such expenses in-
curred in the provisions of activities under 
clauses (III) and (IV) of this subpara-
graph; or 
‘‘(K) establishment of a debt service re-
serve made up of deposits with a bondholders’
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trustee in a non-interest bearing account for 
the purpose of assuring timely payment of prin-
cipal and interest on bonds issued by a grant 
recipient for purposes of financing an eligible 
project under this chapter. 
‘‘(L) remediation associated with construc-
tion of a capital project as described this para-
graph on a brownfield site as defined in 42 
U.S.C. 9601. 
‘‘(2) ‘chief executive officer of a State’ includes 
the designee of the chief executive officer. 
‘‘(3) ‘emergency regulation’ means a regula-
tion—
‘‘(A) that is effective temporarily before 
the expiration of the otherwise specified periods 
of time for public notice and comment under 
section 5334(c); and
‘‘(B) prescribed by the Secretary as the re-
sult of a finding that a delay in the effective 
date of the regulation— 
‘‘(i) would injure seriously an impor-
tant public interest; 
‘‘(ii) would frustrate substantially leg-
islative policy and intent; or
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‘‘(iii) would damage seriously a person 
or class without serving an important pub-
lic interest. 
‘‘(4) ‘fixed guideway’ means a public transpor-
tation facility—
‘‘(A) using and occupying a separate right-
of-way or rail for the exclusive use of public 
transportation and other high occupancy vehi-
cles; or 
‘‘(B) using a fixed catenary system and a 
right-of-way usable by other forms of transpor-
tation. 
‘‘(5) ‘individual with a disability’ means an in-
dividual who, because of illness, injury, age, con-
genital malfunction, or other incapacity or tem-
porary or permanent disability (including an indi-
vidual who is a wheelchair user or has semiambu-
latory capability), cannot use effectively, without 
special facilities, planning, or design, public trans-
portation service or a public transportation facility. 
‘‘(6) ‘local governmental authority’ includes— 
‘‘(A) a political subdivision of a State; 
‘‘(B) an authority of at least 1 State or po-
litical subdivision of a State; 
‘‘(C) an Indian tribe; and
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‘‘(D) a public corporation, board, or com-
mission established under the laws of a State. 
‘‘(7) ‘mass transportation’ means public trans-
portation. 
‘‘(7a) ‘mobility management’ means an activity 
or project that involves one or more of the following 
goals: 
‘‘(A) Addressing public transportation cus-
tomer needs. 
‘‘(B) Tailoring public transportation serv-
ices to specific market niches. 
‘‘(C) Managing public transportation de-
mand. 
‘‘(D) Land use compatibility with public 
transportation services. 
‘‘(E) Improving coordination among public 
transportation providers and other transpor-
tation service providers. 
‘‘(8) ‘net project cost’ means the part of a 
project that reasonably cannot be financed from rev-
enues. 
‘‘(9) ‘new bus model’ means a bus model (in-
cluding a model using alternative fuel)—
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‘‘(A) that has not been used in public 
transportation in the United States before the 
date of production of the model; or 
‘‘(B) used in public transportation in the 
United States, but being produced with a major 
change in configuration or components. 
‘‘(10) ‘public transportation’ means transpor-
tation by a conveyance that provides regular and 
continuing general or special transportation to the 
public, but does not include school bus, charter, or 
sightseeing transportation. 
‘‘(10a) ‘recipient’ means an entity that receives 
Federal transit program assistance directly from the 
Federal government. 
‘‘(11) ‘regulation’ means any part of a state-
ment of general or particular applicability of the 
Secretary designed to carry out, interpret, or pre-
scribe law or policy in carrying out this chapter. 
‘‘(11a) ‘reverse commute project’ means a pub-
lic transportation project designed to transport resi-
dents of urban areas, urbanized areas, and areas 
other than urbanized areas to suburban employment 
opportunities, including any projects to—
‘‘(A) subsidize the costs associated with 
adding reverse commute bus, train, carpool, van
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routes, or service from urban areas, urbanized 
areas, and areas other than urbanized areas, to 
suburban workplaces; 
‘‘(B) subsidize the purchase or lease by a 
nonprofit organization or public agency of a van 
or bus dedicated to shuttling employees from 
their residences to a suburban workplace; or 
‘‘(C) otherwise facilitate the provision of 
public transportation services to suburban em-
ployment opportunities. 
‘‘(12) ‘Secretary’ means the Secretary of Trans-
portation. 
‘‘(13) ‘State’ means a State of the United 
States, the District of Columbia, Puerto Rico, the 
Northern Mariana Islands, Guam, American Samoa, 
and the Virgin Islands, except as defined in section 
5305 of this title. 
‘‘(13a) ‘subrecipient’ means an entity that re-
ceives Federal transit program assistance indirectly 
through a recipient, rather than directly from the 
Federal government. 
‘‘(14) ‘transit’ means public transportation. 
‘‘(15) ‘transit enhancement’ means, with re-
spect to any project or an area to be served by a 
project, projects that are designed to enhance public
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transportation service or use and that are physically 
or functionally related to transit facilities. Eligible 
projects are— 
‘‘(A) historic preservation, rehabilitation, 
or operation of historic public transportation 
buildings, structures, or facilities (including his-
toric bus or railroad facilities); 
‘‘(B) bus shelters; 
‘‘(C) landscaping and other scenic beautifi-
cation, including tables, benches, trash recep-
tacles, and street lights; 
‘‘(D) public art; 
‘‘(E) pedestrian access or walkways; 
‘‘(F) bicycle access, including bicycle stor-
age facilities and installing equipment for trans-
porting bicycles on public transportation vehi-
cles; 
‘‘(G) transit connections to parks within 
the recipient’s transit service area; 
‘‘(H) signage; and
‘‘(I) enhanced access for individuals with 
disabilities to public transportation. 
‘‘(16) [reserved] 
‘‘(17) ‘urbanized area’ means an area encom-
passing a population of at least 50,000 people that
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has been defined and designated in the latest decen-
nial census as an ‘‘urbanized area’’ by the Secretary 
of Commerce. 
‘‘(18) ‘welfare recipient’ means an individual 
who receives or received aid or assistance under a 
State or tribal program funded under part A of title 
IV of the Social Security Act (whether in effect be-
fore or after the effective date of the amendments 
made by title I of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (Pub-
lic Law 104–193; 110 Stat. 2110)) at any time dur-
ing the 3-year period before the date on which the 
applicant applies for a grant under this section. 
‘‘(b) AUTHORITY TO MODIFY ‘INDIVIDUAL WITH A 
DISABILITY’.—The Secretary may by regulation modify 
the definition of the term ‘individual with a disability’ in 
subsection (a)(5) as it applies to section 5307(d)(1)(D).’’. 
(b) CONFORMING AMENDMENT.—Section 5321 is re-
pealed. 
SEC. 3005. METROPOLITAN PLANNING. 
The text of section 5303 is amended to read as fol-
lows: 
‘‘Grants made under sections 5307, 5308, 5309, 
5310, 5311, 5316, and 5317 shall be carried out in ac-
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cordance with the metropolitan planning provisions of 
chapter 52 of this title.’’. 
SEC. 3006. STATEWIDE PLANNING. 
(a) SECTION HEADING.—Section 5304 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5304. Statewide planning’’. 
(b) The text of section 5304 is amended to read as 
follows: 
‘‘Grants made under sections 5307, 5308, 5309, 
5310, 5311, 5316, and 5317 shall be carried out in ac-
cordance with the statewide planning provisions of chapter 
52 of this title.’’. 
(c) CONFORMING AMENDMENT.—The item relating 
to section 5304 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5304. Statewide planning.’’.
SEC. 3007. PLANNING PROGRAMS. 
(a) IN GENERAL.—Section 5305 is amended to read 
as follows: 
‘‘§ 5305. Planning programs 
‘‘(a) DEFINITIONS.—In this section the following 
definitions apply: 
‘‘(1) ‘State’ means a State of the United 
States, the District of Columbia, and Puerto Rico, 
and
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‘‘(2) ‘planning emphasis area’ means priority 
themes identified by the Secretary for consideration 
in sections 5303 and 5304 of this title. 
‘‘(b) GENERAL AUTHORITY.—Under criteria the Sec-
retary establishes, the Secretary may make grants to 
States, authorities of the States, metropolitan planning or-
ganizations, and local governmental authorities, or may 
make agreements with other departments, agencies, and 
instrumentalities of the Government, or may enter into 
contracts with private non-profit or for-profit entities for 
development of, transportation plans and programs and 
to plan, engineer, design, and evaluate a public transpor-
tation project and for other technical studies, including—
‘‘(1) studies related to management, planning, 
operations, capital requirements, and economic feasi-
bility; 
‘‘(2) evaluating previously financed projects; 
‘‘(3) peer reviews and exchanges of technical 
data, information, assistance, and related activities 
in support of planning and environmental analyses 
among metropolitan planning organizations and 
other transportation planners; and, 
‘‘(4) other similar and related activities prelimi-
nary to and in preparation for constructing, acquir-
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ing, or improving the operation of facilities and 
equipment. 
‘‘(c) PURPOSE.—To the extent practicable, the Sec-
retary shall ensure that amounts appropriated or made 
available under section 5338 of this title to carry out this 
section and sections 5303 and 5304 of this title are used 
to support balanced and comprehensive transportation 
planning that considers the relationships among land use 
and all transportation modes, without regard to the pro-
grammatic source of the planning amounts. 
‘‘(d) METROPOLITAN PLANNING PROGRAM.—
‘‘(1) The Secretary shall apportion 80 percent 
of the amount made available under subsection 
(h)(2)(A) of this section to States to carry out sec-
tions 5303 and 5306 of this title in a ratio equal to 
the population in urbanized areas in each State di-
vided by the total population in urbanized areas in 
all States, as shown by the latest available decennial 
census of population. A State may not receive less 
than .5 percent of the amount apportioned under 
this paragraph. 
‘‘(2) Amounts apportioned to a State under 
paragraph (1) of this subsection shall be made avail-
able promptly after allocation to metropolitan plan-
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‘‘(A) incentive grants to state, metropoli-
tan planning organizations, and public trans-
portation operators; and 
‘‘(B) research, information dissemination, 
and technical assistance. 
‘‘(3) The Secretary may use the funds for the 
purpose described in paragraph (2)(B) independ-
ently or make grants to, or enter into contracts, co-
operative agreements, and other transactions, with a 
Federal agency, State agency, local governmental 
authority, association, nonprofit or for-profit entity, 
or institution of higher education, to carry out the 
purposes of this subsection. 
‘‘(4) The program shall be administered by the 
Federal Transit Administration in cooperation with 
the Federal Highway Administration. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) Amounts made available to carry out sub-
sections (d), (e) and (f) of this section may not ex-
ceed 80 percent of the costs of the activity unless 
the Secretary of Transportation decides it is in the 
interests of the Government not to require a State 
or local match. 
‘‘(2) When there are planning emphasis areas 
funded under a grant or contract financed under
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this section, the Secretary may establish a Govern-
ment share consistent with the planning emphasis 
area benefit. 
‘‘(h) ALLOCATION OF FUNDS.—Of the funds made 
available by or appropriated to carry out this section 
under section 5338(a)(2)(A) and (B) and 5338(b)(3)(A) 
and (B) of this title for fiscal years 2004 through 2009—
‘‘(1) $5,000,000 shall be available for the plan-
ning capacity building program under subsection (f) 
of this section; and 
‘‘(2) of the remaining amount—
‘‘(A) 82.72 percent shall be available for 
the metropolitan planning program under sub-
section (d) of this section; and 
‘‘(B) 17.28 percent shall be available to 
carry out subsections (b) and (e) of this section. 
‘‘(i) AVAILABLITY OF AMOUNTS.—An amount appor-
tioned under this section that remains available for 3 years 
after the fiscal year in which the amount is apportioned 
shall be reapportioned among the States.’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 5305 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5305. Planning programs.’’.
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SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION. 
(a) SECTION HEADING.—Section 5306 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5306. Private enterprise participation in metro-
politan planning and statewide plan-
ning’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 5306 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5306. Private enterprise participation in metropolitan planning and statewide 
planning.’’.
SEC. 3009. URBANIZED AREA PUBLIC TRANSPORTATION 
FORMULA GRANTS PROGRAM. 
(a) SECTION HEADING.—Section 5307 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5307. Urbanized area public transportation for-
mula grants program’’. 
(b) TECHNICAL AMENDMENTS.—Section 5307 is 
amended by—
(1) striking subsections (h), (j) and (k); and 
(2) redesignating subsections (i), (l), (m), and 
(n) as subsections (h), (i), (j), and (k), respectively. 
(c) DEFINITIONS.—Section 5307(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) ‘designated recipient’ means—
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‘‘(A) an entity designated, consistent with 
the planning process under sections 5303–5306 
of this title, by the chief executive officer of a 
State, responsible local officials, and publicly 
owned operators of public transportation to re-
ceive and apportion amounts under sections 
5336 and 5337 of this title that are attrib-
utable to transportation management areas es-
tablished under section 5303 of this title; or 
‘‘(B) a State or regional authority if the 
authority is responsible under the laws of a 
State for a capital project and for financing 
and directly providing public transportation; 
and 
‘‘(2) ‘subrecipient’ means a State or local gov-
ernmental authority, a nonprofit organization, or a 
private operator of public transportation service that 
may receive a Federal transit program grant indi-
rectly through a recipient, rather than directly from 
the Federal government.’’. 
(d) GENERAL
AUTHORITY.—Section 5307(b) is 
amended—
(1) by striking paragraph (1) and inserting a 
new paragraph (1) as follows:
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‘‘(1) The Secretary of Transportation may 
make grants under this section for—
‘‘(A) capital projects; 
‘‘(B) planning and mobility management; 
‘‘(C) transit enhancements; and 
‘‘(D) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of less than 
200,000.’’; 
(2) by striking paragraphs (2) and (4); 
(3) by redesignating paragraph (3) as para-
graph (2); and 
(4) in redesignated paragraph (2), by striking 
‘‘5305(a)’’ and inserting ‘‘5303’’. 
(e) GRANT
RECIPIENT
REQUIREMENTS.—Section 
5307(d) is amended—
(1) in paragraph (1)(A), by inserting ‘‘, includ-
ing safety and security aspects of the program’’ 
after ‘‘capacity’’; 
(2) in paragraph (1)(E), by striking everything 
that appears after ‘‘section’’ and inserting ‘‘the re-
cipient will comply with section 5323 and 5325 of 
this title’’; 
(3) in paragraph (1)(H), by striking ‘‘5310(a)–
(d)’’;
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(4) by striking paragraph (1)(I); 
(5) by redesignating paragraph (1)(J) as para-
graph (1)(I); and 
(6) by adding at the end of subsection (f)(1), 
as redesignated, the following: 
‘‘(J) with a population of at least 200,000 
in its urbanized area will expend one percent of 
the amount the recipient receives each fiscal 
year under this section for transit enhancement 
activities described in section 5302(a)(15) of 
this title.’’. 
(f) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5307(e), is amended—
(1) in the first sentence, by striking ‘‘(including 
associated capital maintenance items)’’; and 
(2) in the fourth sentence, by striking ‘‘that are 
more than the amount of those revenues in the fiscal 
year that ended September 30, 1985’’ and inserting 
‘‘and amounts received under a service agreement 
with a State or local social service agency or a pri-
vate social service organization’’. 
(g) UNDERTAKING PROJECTS IN ADVANCE.—Section 
5307(g) is amended by striking paragraph (4).
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(h) REVIEWS, AUDITS, AND EVALUATIONS.—Section 
5307(h), as redesignated, is amended in paragraph (1)(A) 
by striking ‘‘shall’’ and inserting ‘‘may’’. 
(i) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5307(k), as redesignated, is amended to read as follows: 
‘‘(k)(1) Sections 5301, 5302, 5303, 5304, 5306, 
5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 
5331, 5332, 5333 and 5335 of this title apply to this sec-
tion and to a grant made under this section. Except as 
provided in this section, no other provision of this chapter 
applies to this section or to a grant made under this sec-
tion. 
‘‘(2) The provision of assistance under this chapter 
shall not be construed as bringing within the application 
of chapter 15, title 5, U.S.C., any nonsupervisory em-
ployee of a public transportation system (or any other 
agency or entity performing related functions) to which 
such chapter is otherwise inapplicable.’’. 
(j) CONFORMING AMENDMENTS.—
(1) The item relating to section 5307 in the 
table of sections for chapter 53 is amended to read 
as follows:
‘‘5307. Urbanized area public transportation formula grants program.’’.
(2) Section 3037 of the Transportation Equity 
Act for the 21st Century, Public Law 105–178, as 
amended, is repealed.
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SEC. 3010. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) ‘recipient’ means a State that receives a 
Federal transit program grant directly from the 
Federal government; and 
‘‘(2) ‘subrecipient’ means a State or local gov-
ernmental authority, a nonprofit organization, or a 
private operator of public transportation service that 
may receive a Federal transit program grant indi-
rectly through a recipient, rather than directly from 
the Federal government.’’. 
(b) GENERAL
AUTHORITY.—Section 5311(b) is 
amended—
(1) by revising paragraph (1) to read as follows: 
‘‘(1) Except as provided in paragraph (2) of 
this subsection, the Secretary may make grants to 
areas other than urbanized areas under this section 
for the following: 
‘‘(A) public transportation capital projects; 
‘‘(B) operating costs of equipment and fa-
cilities for use in public transportation; and 
‘‘(C) the acquisition of public transpor-
tation services.’’;
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(2) by redesignating paragraph (2) as para-
graph (3) and inserting a new paragraph (2), as fol-
lows: 
‘‘(2) A project eligible for a grant under this 
section shall be included in a State program for pub-
lic transportation service projects, including agree-
ments with private providers of public transportation 
service. The program shall be submitted annually to 
the Secretary. The Secretary may approve the pro-
gram only if the Secretary finds that the program 
provides a fair distribution of amounts in the State, 
including Indian reservations, and the maximum fea-
sible coordination of public transportation service as-
sisted under this section with transportation service 
assisted by other federal sources.’’; 
(3) in paragraph (3), as redesignated, by insert-
ing ‘‘use not more than 2 percent of the amount 
made available to carry out this section to’’ before 
‘‘make’’; and 
(4) by adding after paragraph (3) the following: 
‘‘(4) Of the amount available to carry out para-
graph (3), not more than 15 percent may be used 
to carry out projects of a national scope, with the re-
maining balance provided to the States.’’.
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(c) APPORTIONING AMOUNTS.—Subsection (c) is 
amended to read as follows: 
‘‘(c) APPORTIONMENTS.—
‘‘(1) The amounts made available under section 
5338(a)(2)(K) shall be apportioned as follows: 
‘‘(A) For each eligible State in accordance 
with paragraph (2) of this subsection: 
‘‘(i) $2,500,000 in fiscal year 2004. 
‘‘(ii) Three percent in fiscal year 
2005. 
‘‘(iii) Five percent in fiscal year 2006. 
‘‘(iv) Seven percent in fiscal year 
2007. 
‘‘(v) Nine percent in fiscal year 2008. 
‘‘(vi) Ten percent in every fiscal year 
thereafter. 
‘‘(B) Remaining amounts shall be appor-
tioned to each State in accordance with para-
graph (3) of this subsection. 
‘‘(2)(A) Of the amounts to be apportioned 
under paragraph (1)(A) of this subsection, the Sec-
retary may use the following amounts to make 
grants to establish data collection systems capable of 
collecting the data in subparagraph (C) of this para-
graph:
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‘‘(i) 100 percent in fiscal year 2004. 
‘‘(ii) $1,500,000 in fiscal year 2005. 
‘‘(iii) $500,000 in fiscal year 2006. 
‘‘(B) Amounts under subparagraph (A) of this 
paragraph not obligated within three years following 
the end of the fiscal year in which those amounts
became available shall be available for apportion-
ment under subparagraph (C) of this paragraph. 
‘‘(C) The remaining amounts to be apportioned 
under paragraph (1)(A) of this subsection shall be 
apportioned by a formula determined by the Sec-
retary that distributes funds based on increases in 
public transportation patronage in other-than-urban-
ized areas. 
‘‘(D) In apportioning funds under subpara-
graph (C) of this paragraph, the Secretary may con-
sider the efficiency of service provision in the non-
urbanized areas in the State. 
‘‘(3) Each State shall receive an amount equal 
to the remaining amount apportioned multiplied by 
a ratio equal to the population of areas other than 
urbanized areas in a State divided by the population 
of all areas other than urbanized areas in the United 
States, as shown by the most recent Federal govern-
ment decennial census of population.’’.
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(d) USE
FOR ADMINISTRATIVE, PLANNING, AND 
TECHNICAL ASSISTANCE.—Section 5311(e) is amended by 
striking—
(1) ‘‘Use for administration and technical as-
sistance. (1)’’ and inserting ‘‘Use for administration, 
planning, and technical assistance.’’; 
(2) ‘‘to a recipient’’ after ‘‘technical assist-
ance’’; and 
(3) paragraph (2). 
(e) INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended—
(1) in paragraph (1), by striking ‘‘after Sep-
tember 30, 1993,’’; and 
(2) by inserting at the beginning of paragraph 
(2) ‘‘After consultation with affected intercity bus 
service providers,’’. 
(f) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5311(g) is amended to read as follows: 
‘‘(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-
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ating costs of the project, as determined by the Sec-
retary. The remainder—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Federal government (other than 
the Department of Transportation, except for 
Federal Land Highway funds) that are eligible 
to be expended for transportation. 
‘‘(2) A state carrying out a program of oper-
ating assistance under this section may not limit the 
level or extent of use of the Government grant for 
the payment of operating expenses. 
‘‘(3) For purposes of paragraph (2)(B) of this 
section, the prohibitions on the use of funds for 
matching 
requirements 
under 
section 
403(a)(5)(c)(vii) of the Social Security Act shall not 
apply to federal or state funds to be used for trans-
portation purposes.’’.
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(g) INDIAN RESERVATION RURAL TRANSIT PRO-
GRAM.—Section 5311(h) is amended to read as follows: 
‘‘(h) INDIAN RESERVATION RURAL TRANSIT PRO-
GRAM.—
‘‘(1) In this subsection, the term ‘Indian tribe’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
‘‘(2)(A) The Secretary shall establish and carry 
out through the States a program to provide grants 
to Indian tribes to operate, maintain, and establish 
rural transit programs on reservations or other land 
under the jurisdiction of the Indian tribes. 
‘‘(B) The state may waive or reduce the 
amount of local share required for these grants. 
‘‘(3) Notwithstanding any other provision of 
law, for each fiscal year, of the amount made avail-
able to carry out this section under section 
5338(a)(2)(K) for the fiscal year, the Secretary shall 
make available $10,000,000 to carry out this sub-
section. 
‘‘(4) Of the funds made available pursuant to 
paragraph (3) of this subsection—
‘‘(A) $9,500,000 shall be apportioned to 
the states based on a ratio equal to the tribal
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population in each state divided by the total 
tribal population in all states, as shown by the 
latest decennial census of population for alloca-
tion to existing Indian tribal rural transit pro-
grams and to plan and establish new Indian 
tribe rural transit programs; 
‘‘(B) prior to distribution by states of in-
state amounts to Indian tribes, each State may 
use up to 5 percent for state administration; 
‘‘(C) amounts apportioned to a state under 
paragraph (A) of this subsection shall be dis-
tributed to Indian tribes in the state based on 
an allocation plan—
‘‘(i) the state develops in cooperation 
with Indian tribes; 
‘‘(ii) the Secretary approves; and 
‘‘(iii) that provides an appropriate dis-
tribution for funding the needs of existing 
and new Indian Reservation Rural Transit 
Systems; and 
‘‘(D) $500,000 shall be available to the 
Secretary to provide technical assistance, in-
cluding best practices and outreach, to the 
states and tribes through grants, contracts, or 
other arrangements and shall be in addition to
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and not in lieu of other funds available for 
these purposes. 
‘‘(5) An amount apportioned to the states 
under this subsection—
‘‘(A) remains available for 3 years after 
the fiscal year in which the amount was appor-
tioned; and 
‘‘(B) shall be reapportioned among the 
states if unobligated at the end of the 3-year 
period.’’. 
(h) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5311(j) is amended to read as follows: 
‘‘(j) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) Except as provided in subparagraphs (2) 
and (3) of this subsection, a grant under this section 
is subject to the requirements of 5307 to the extent 
the Secretary considers appropriate. 
‘‘(2) Sections 5323(a)(1)(D) and 5333(b) of 
this title shall apply, provided that the Secretary of 
Labor shall utilize a Special Warranty that provides 
a fair and equitable arrangement to protect the in-
terest of employees. 
‘‘(3) The Secretary may waive the applicability 
of the Special Warranty under paragraph (2) for
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private non-profit subrecipients on a case-by-case 
basis as the Secretary deems appropriate.
‘‘(4) This subsection does not affect or dis-
charge a responsibility of the Secretary under a law 
of the United States.’’. 
SEC. 3011. NEW FREEDOM PROGRAM. 
(a) Chapter 53 of title 49, United States Code, 
is amended by inserting after section 5316 the fol-
lowing: 
‘‘§ 5317. New Freedom program 
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) ‘recipient’ means a State that receives a 
grant under this section directly; and 
‘‘(2) ‘subrecipient’ means a State or local gov-
ernmental authority, a nonprofit organization, or a 
private operator of public transportation service that 
may receive a grant under this section indirectly 
through a recipient, rather than directly from the 
Federal government. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) The Secretary of Transportation may pro-
vide grants to recipients for new transportation serv-
ices and transportation alternatives beyond those re-
quired by the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.), including motor ve-
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hicle programs that assist persons with disabilities 
with transportation to and from jobs and employ-
ment support services. 
‘‘(2) A recipient may use not more than 15 per-
cent of the amounts apportioned under this section 
to administer, plan, and provide technical assistance 
for a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
‘‘(1) The Secretary shall apportion amounts 
made available under section 5338(a)(2)(H) of this 
title under a formula the Secretary administers. 
‘‘(2) The recipient may transfer any funds ap-
portioned to it under this subsection to sections 
5311(c) or 5336. Any funds transferred pursuant to 
this subsection shall be made available only for eligi-
ble projects selected under this section. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) Except as provided in paragraphs (2) and 
(3) of this subsection, a grant under this section is 
subject to the requirements of 5307 to the extent 
the Secretary considers appropriate. 
‘‘(2) Section 5333(b) of this title shall apply, 
provided that the Secretary of Labor shall utilize a 
Special Warranty that provides a fair and equitable 
arrangement to protect the interest of employees.
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‘‘(3) The Secretary may waive the applicability 
of the Special Warranty under paragraph (2) for 
private non-profit subrecipients on a case-by-case 
basis as the Secretary deems appropriate. 
‘‘(4) A recipient of a grant under this section 
shall certify that allocations of the grant to sub-
recipients are distributed on a fair and equitable 
basis. 
‘‘(e) COMPETITIVE PROCESS.—
‘‘(1) The recipient shall conduct a statewide so-
licitation for applications for grants under this sec-
tion. 
‘‘(2) Subrecipients seeking to receive a grant 
under this section shall submit to the recipient an 
application in the form and in accordance with such 
requirements as the recipient shall establish. 
‘‘(3) Subrecipients submitting applications pur-
suant to paragraph (2) shall be selected on a com-
petitive basis. 
‘‘(f) COORDINATION.—
‘‘(1) The Secretary shall coordinate activities 
under this section with related activities under pro-
grams of other Federal departments and agencies. 
‘‘(2) A recipient that transfers funds to section 
5336 pursuant to subsection (c)(2) shall certify that
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State or local social service agency or a private 
social service organization, or new capital; and 
‘‘(B) derived from amounts appropriated 
to or made available to a department or agency 
of the Federal government (other than the De-
partment of Transportation, except for Federal 
Land Highway funds) that are eligible to be ex-
pended for transportation. 
‘‘(2) A recipient carrying out a program of op-
erating assistance under this section may not limit 
the level or extent of use of the Government grant 
for the payment of operating expenses. 
‘‘(3) For purposes of paragraph (1)(B) of this 
section, the prohibitions on the use of funds for 
matching 
requirements 
under 
section 
403(a)(5)(c)(vii) of the Social Security Act shall not 
apply to federal or state funds to be used for trans-
portation purposes.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for Chapter 53 is amended after the item relating 
to section 5316 by adding the following:
‘‘5317. New Freedom program.’’.
SEC. 3012. MAJOR CAPITAL INVESTMENT PROGRAM. 
(a) MAJOR CAPITAL INVESTMENT PROGRAM.—Sec-
tion 5309 is amended to reads as follows:
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‘‘§ 5309. Major capital investment grants 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) The Secretary of Transportation may 
make grants under this section to State and local 
governmental authorities to assist them and their 
subrecipients in financing capital projects for—
‘‘(A) new fixed guideway systems, exten-
sions to existing fixed guideway systems, and 
related project activities; 
‘‘(B) the capital costs of coordinating pub-
lic transportation with other transportation; 
‘‘(C) the introduction of new technology, 
through innovative or improved products, into 
public transportation; or 
‘‘(D) the development of corridors to sup-
port public transportation, including protecting 
rights of way through acquisition, construction 
of dedicated bus and high occupancy vehicle 
lanes or park and ride lots, or other capital im-
provements that the Secretary may decide 
would result in increased public transportation 
usage in the corridor. 
‘‘(2) The Secretary shall require that a grant 
under this subsection be subject to the terms, condi-
tions, requirements, and provisions the Secretary de-
cides are necessary or appropriate for the purposes
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of this section, including requirements for the dis-
position of net increases in value of real property re-
sulting from the project assisted under this section. 
‘‘(b) PROJECT AS PART OF APPROVED PROGRAM OF 
PROJECTS.—
‘‘(1) The Secretary may not approve a grant for 
a project under this section unless the Secretary 
finds that the project is part of an approved trans-
portation plan and program of projects required 
under sections 5303–5306 of this title, and that the 
applicant has or will have the legal, financial, and 
technical capacity to carry out the project (including 
safety and security aspects of the project), satisfac-
tory continuing control over the use of the equip-
ment or facilities, and the capability and willingness 
to maintain the equipment or facilities. 
‘‘(2) An applicant that has submitted a certifi-
cation required by section 5307(d)(1)(A)–(C) and 
(H) of this title shall provide sufficient information 
upon which the Secretary can make the findings re-
quired by this subsection. 
‘‘(c) CRITERIA FOR MAJOR CAPITAL INVESTMENT 
GRANTS OF $75 MILLION OR MORE.—
‘‘(1) A project financed under this subsection 
shall be carried out through a full funding grant
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agreement. The Secretary shall enter into a full 
funding grant agreement based on the evaluations 
and ratings required under this subsection. The Sec-
retary shall not enter into a full funding grant 
agreement for a project unless that project is au-
thorized for final design and construction and has 
been rated as ‘medium,’ ‘medium-high,’ or ‘high,’ as 
defined in this subsection. 
‘‘(2) The Secretary may approve a grant under 
this section for a major capital project only if the 
Secretary makes the following determinations, based 
upon evaluations and considerations as set forth 
below: 
‘‘(A) The Secretary may approve a grant 
under this section for a major capital project 
only if the Secretary determines that the pro-
posed project is—
‘‘(i) based on the results of an alter-
natives analysis and preliminary engineer-
ing; 
‘‘(ii) justified based on a comprehen-
sive review of its mobility improvements, 
environmental benefits, cost effectiveness, 
operating efficiencies, transit supportive 
policies and existing land use; and
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‘‘(iii) supported by an acceptable de-
gree of local financial commitment, includ-
ing evidence of stable and dependable fi-
nancing sources to construct the project, 
and maintain, and operate the entire pub-
lic transportation system. 
‘‘(B) Before making the determinations re-
quired by paragraph (2)(A), the Secretary shall 
first analyze, evaluate, and consider the fol-
lowing factors: 
‘‘(i) In evaluating a project for pur-
poses of making the finding required by 
paragraph (2)(A)(i), the Secretary shall 
analyze and consider the results of the al-
ternatives analysis and preliminary engi-
neering for the project. 
‘‘(ii) In evaluating a project for pur-
poses of making the finding required by 
paragraph (2)(A)(ii), the Secretary shall—
‘‘(I) consider the direct and indi-
rect costs of relevant alternatives; 
‘‘(II) consider factors such as 
congestion relief, improved mobility, 
air pollution, noise pollution, energy 
consumption, and all associated ancil-
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lary and mitigation costs necessary to 
carry out each alternative analyzed, 
and recognize reductions in local in-
frastructure costs achieved through 
compact land use development; 
‘‘(III) identify and consider pub-
lic transportation supportive existing 
land use policies and future patterns, 
and the cost of suburban sprawl; 
‘‘(IV) consider the degree to 
which the project increases the mobil-
ity of the public transportation de-
pendent population or promotes eco-
nomic development; 
‘‘(V) consider population density 
and current transit ridership in the 
corridor; 
‘‘(VI) consider the technical ca-
pability of the grant recipient to con-
struct the project; 
‘‘(VII) adjust the project jus-
tification to reflect differences in local 
land, 
construction, 
and 
operating 
costs; and
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‘‘(VIII) consider other factors 
that the Secretary determines appro-
priate to carry out this chapter. 
‘‘(iii) In evaluating a project under 
paragraph (2)(A)(iii), the Secretary shall 
require that—
‘‘(I) the proposed project plan 
provides for the availability of contin-
gency amounts that the Secretary de-
termines to be reasonable to cover un-
anticipated cost increases; 
‘‘(II) each proposed local source 
of capital and operating financing is 
stable, reliable, and available within 
the proposed project timetable; and 
‘‘(III) local resources are avail-
able to operate the overall proposed 
public transportation system (includ-
ing essential feeder bus and other 
services necessary to achieve the pro-
jected ridership levels) without requir-
ing a reduction in existing public 
transportation services to operate the 
proposed project.
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and rate the project as ‘high,’ ‘medium-high,’ ‘me-
dium,’ ‘low-medium,’ or ‘low,’ based on the results of 
alternatives analysis, the project justification cri-
teria, and the degree of local financial commitment, 
as required under this subsection. In rating the 
projects, the Secretary shall provide, in addition to 
the overall project rating, individual ratings for each 
of the criteria established by regulation. 
‘‘(d) CRITERIA FOR MAJOR CAPITAL INVESTMENT 
GRANTS LESS THAN $75 MILLION.—If the assistance 
provided under this section is less than $75,000,000, the 
project shall be subject to the requirements set forth in 
subsection (c) of this section only to the extent the Sec-
retary determines appropriate. 
‘‘(e) PREVIOUSLY ISSUED LETTER OF INTENT OR 
FULL FUNDING GRANT AGREEMENT.—Subsections (c) 
and (d) of this section do not apply to projects for which 
the Secretary has issued a letter of intent or entered into 
a full funding grant agreement before the date of enact-
ment of the Federal Public Transportation Act of 2003. 
‘‘(f) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.—
‘‘(1)(A) The Secretary may issue a letter of in-
tent to an applicant announcing an intention to obli-
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gate, for a major capital project under this section, 
an amount from future available budget authority 
specified in law that is not more than the amount 
stipulated as the financial participation of the Sec-
retary in the project. When a letter is issued for 
fixed guideway projects, the amount shall be suffi-
cient to complete at least an operable segment. 
‘‘(B) At least 30 days before issuing a letter 
under subparagraph (A) of this paragraph or enter-
ing into a full funding grant agreement, the Sec-
retary shall notify in writing the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the 
House and Senate Committees on Appropriations of 
the proposed letter or agreement. The Secretary 
shall include with the notification a copy of the pro-
posed letter or agreement as well as the evaluations 
and ratings for the project. 
‘‘(C) The issuance of a letter is deemed not to 
be an obligation under sections 1108(c) and (d), 
1501, and 1502(a) of title 31, U.S.C., or an admin-
istrative commitment.
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‘‘(D) An obligation or administrative commit-
ment may be made only when amounts are appro-
priated. 
‘‘(2)(A) The Secretary may make a full funding 
grant agreement with an applicant. The agreement 
shall—
‘‘(i) establish the terms of participation by 
the United States Government in a project 
under this section; 
‘‘(ii) establish the maximum amount of 
Government financial assistance for the project; 
‘‘(iii) cover the period of time for com-
pleting the project, including a period extending 
beyond the period of an authorization; and 
‘‘(iv) make timely and efficient manage-
ment of the project easier according to the law 
of the United States. 
‘‘(B) An agreement under this paragraph obli-
gates an amount of available budget authority speci-
fied in law and may include a commitment, contin-
gent on amounts to be specified in law in advance 
for commitments under this paragraph, to obligate 
an additional amount from future available budget 
authority specified in law. The agreement shall state 
that the contingent commitment is not an obligation
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of the Government. Interest and other financing 
costs of efficiently carrying out a part of the project 
within a reasonable time are a cost of carrying out 
the project under a full funding grant agreement, 
except that eligible costs may not be more than the 
cost of the most favorable financing terms reason-
ably available for the project at the time of bor-
rowing. The applicant shall certify, in a way satis-
factory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financing terms. The amount stipulated in 
an agreement under this paragraph for a fixed 
guideway project shall be sufficient to complete at 
least an operable segment. 
‘‘(3)(A) The Secretary may make an early sys-
tems work agreement with an applicant if a record 
of decision under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) has been 
issued on the project and the Secretary finds there 
is reason to believe—
‘‘(i) a full funding grant agreement for the 
project will be made; and 
‘‘(ii) the terms of the work agreement will 
promote ultimate completion of the project 
more rapidly and at less cost.
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‘‘(B) A work agreement under this paragraph 
obligates an amount of available budget authority 
specified in law and shall provide for reimbursement 
of preliminary costs of carrying out the project, in-
cluding land acquisition, timely procurement of sys-
tem elements for which specifications are decided, 
and other activities the Secretary decides are appro-
priate to make efficient, long-term project manage-
ment easier. A work agreement shall cover the pe-
riod of time the Secretary considers appropriate. 
The period may extend beyond the period of current 
authorization. Interest and other financing costs of 
efficiently carrying out the work agreement within a 
reasonable time are a cost of carrying out the agree-
ment, except that eligible costs may not be more 
than the cost of the most favorable financing terms 
reasonably available for the project at the time of 
borrowing. The applicant shall certify, in a way sat-
isfactory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financing terms. If an applicant does not 
carry out the project for reasons within the control 
of the applicant, the applicant shall repay all Gov-
ernment payments made under the work agreement
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plus reasonable interest and penalty charges the 
Secretary establishes in the agreement. 
‘‘(4)(A) The total estimated amount of future 
obligations of the Government and contingent com-
mitments to incur obligations covered by all out-
standing letters of intent, full funding grant agree-
ments, and early systems work agreements may be 
not more than the greater of the amount authorized 
under section 5338(b) of this title for major capital 
investment projects or an amount equivalent to the 
last 3 fiscal years of funding authorized under sec-
tion 5338(b)(3)(C) for major capital investment 
projects, less an amount the Secretary reasonably 
estimates is necessary for grants under this section 
not covered by a letter. The total amount covered by 
new letters and contingent commitments included in 
full funding grant agreements and early systems 
work agreements may be not more than a limitation 
specified in law. 
‘‘(B) Future obligations of the Government and 
contingent commitments made against the contin-
gent commitment authority under section 3032(g)(2) 
of the Intermodal Surface Transportation Efficiency 
Act of 1991, Public Law 102–240, as amended, for 
the San Francisco BART to the Airport project for
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fiscal years 2002, 2003, 2004, 2005, and 2006 shall 
be charged against section 3032(g)(2) of that Act. 
‘‘(g) GOVERNMENT’S
SHARE
OF
NET
PROJECT 
COST.—
‘‘(1) Based on engineering studies, studies of 
economic feasibility, and information on the expected 
use of equipment or facilities, the Secretary shall es-
timate the net project cost. A grant for the project 
shall be for 50 percent of the net capital project 
cost, unless the grant recipient requests a lower 
grant percentage. 
‘‘(2) The remainder—
‘‘(A) shall be from an undistributed cash 
surplus, a replacement or depreciation cash 
fund or reserve, or new capital; and 
‘‘(B) may include up to 30 percent from 
amounts appropriated to or made available to a 
department or agency of the Federal Govern-
ment that are eligible to be expended for trans-
portation. 
‘‘(3) In addition to amounts allowed pursuant 
to paragraph (1) of this subsection, a planned exten-
sion to a fixed guideway system may include the cost 
of rolling stock previously purchased if the applicant 
satisfies the Secretary that only amounts other than
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amounts of the Government were used and that the 
purchase was made for use on the extension. A re-
fund or reduction of the remainder may be made 
only if a refund of a proportional amount of the 
grant of the Government is made at the same time. 
‘‘(4) The prohibitions on the use of funds for 
matching 
requirements 
under 
section 
403(a)(5)(C)(vii) of the Social Security Act shall not 
apply to amounts allowed pursuant to paragraph (2) 
of this subsection. 
‘‘(5) This subsection does not apply to projects 
for which the Secretary of Transportation has issued 
a letter of intent or entered into a full funding grant 
agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2003. 
‘‘(h) FISCAL CAPACITY CONSIDERATIONS.—If the 
Secretary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (g) of this section, the Secretary 
may also give consideration to ‘high,’ ‘medium-high,’ or 
‘medium’ projects sponsored by grant applicants and State 
and local governments of constrained fiscal capacity in se-
lecting projects for full funding grant agreements. 
‘‘(i) PRELIMINARY ENGINEERING.—Not more than 8 
percent of the amounts made available in each fiscal year
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to carry out this section may be available for preliminary 
engineering. 
‘‘(j) UNDERTAKING PROJECTS IN ADVANCE.—
‘‘(1) The Secretary may pay the Government’s 
share of the net capital project cost to a State or 
local governmental authority that carries out any 
part of a project described in this section without 
the aid of amounts of the Government and according 
to all applicable procedures and requirements if—
‘‘(A) the State or local governmental au-
thority applies for the payment; 
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under this section. 
‘‘(2) The cost of carrying out part of a project 
includes the amount of interest earned and payable 
on bonds issued by the State or local governmental 
authority to the extent proceeds of the bonds are ex-
pended in carrying out the part. However, the 
amount of interest under this paragraph may not be 
more than the most favorable interest terms reason-
ably available for the project at the time of bor-
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rowing. The applicant shall certify, in a manner sat-
isfactory to the Secretary, that the applicant has 
shown reasonable diligence in seeking the most fa-
vorable financial terms. 
‘‘(3) The Secretary shall consider changes in 
capital project cost indices when determining the es-
timated cost under paragraph (2) of this subsection. 
‘‘(k) USE OF DEOBLIGATED AMOUNTS.—An amount 
available under this section that is deobligated may be 
used for any purpose under this section. 
‘‘(l) REPORTS.—
‘‘(1) Not later than the first Monday in Feb-
ruary of each year, the Secretary shall submit to the 
Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate, 
as well as the Subcommittee on Transportation of 
the Committees on Appropriations of both Houses, 
a report that may include—
‘‘(A) an allocation of amounts to be avail-
able to finance grants for capital investment 
projects among applicants for these amounts; 
‘‘(B) an assessment of projects for funding 
based on the evaluations and ratings and on ex-
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isting commitments and anticipated funding 
levels for the next 3 fiscal years; and 
‘‘(C) detailed ratings and evaluations on 
each project listed. 
‘‘(2) The Secretary shall submit a report to 
Congress on the first Monday in February, the first 
Monday in June, and the first Monday in October 
each year that includes: 
‘‘(A) a summary of the ratings of all appli-
cant’s capital investment projects; 
‘‘(B) detailed ratings and evaluations on 
each applicant project with significant changes 
to the finance or project proposal or has com-
pleted alternatives or preliminary engineering 
since the date of the last report; and 
‘‘(C) all relevant information that support 
the evaluation and rating of each updated 
project, including a summary of each updated 
project’s financial plan. 
‘‘(m) PROJECT DEFINED.—In this section, the term 
‘major capital investment project’ with respect to a new 
fixed guideway system or extension to an existing fixed 
guideway system, means a minimum operable segment of 
the project.’’.
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SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended—
(1) in subsection (a), 
(A) by striking ‘‘or contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(B) by striking ‘‘help reduce urban trans-
portation needs,’’;
(C) by striking ‘‘urban’’ each place it ap-
pears; and 
(D) 
by 
striking 
‘‘and 
demonstration 
projects related’’ and inserting ‘‘, demonstration 
or deployment projects, or evaluation of tech-
nology of national significance’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
(b) and (c), respectively; 
(4) in subsection (b)(2), as redesignated, by 
striking ‘‘other agreements’’ and inserting ‘‘other 
transactions’’; 
(5) in subsection (b)(3), as redesignated, by 
striking ‘‘50’’ and inserting ‘‘80’’; 
(6) in subsection (b)(4), by adding the following 
sentence at the end: ‘‘The evaluation criteria shall
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include consideration of a share of consortium con-
tributions to the overall research costs.’’; 
(7) in subsection (c)(2), as redesignated, by 
striking ‘‘and’’ and inserting ‘‘or’’ before ‘‘private’’; 
and 
(8) in subsections (b)(5) and (c)(3), as redesig-
nated, by striking ‘‘within the Mass Transit Account 
of the Highway Trust Fund’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 5312 is amended by striking the 
section heading and inserting the following: 
‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) The item relating to section 5312 in the 
table of sections is amended to read as follows:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 3014. COOPERATIVE RESEARCH GRANT PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) in subsection (a) by—
(A) striking ‘‘(1)’’; 
(B) striking ‘‘paragraphs (1) and (2)(C)(ii) 
of 
section 
5338(d)’’ 
and 
inserting 
‘‘5338(a)(2)(F)(iii)(I) and (III)’’; and 
(C) striking ‘‘(2)’’ and inserting ‘‘(b) FED-
ERAL ASSISTANCE.—’’; 
(2) by striking subsection (b); and
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(3) in subsection (c), by striking ‘‘subsection 
(a) of’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 5313 is amended by striking the 
section heading and inserting the following: 
‘‘§ 5313. Cooperative research program’’. 
(2) The item relating to section 5313 in the 
table of sections is amended to read as follows:
‘‘5313. Cooperative research program.’’.
SEC. 3015. NATIONAL RESEARCH PROGRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) in the section heading, by striking ‘‘plan-
ning and’’; 
(2) in subsection (a)(1), by—
(A) striking ‘‘subsections (d) and (h)(7) of 
section 
5338’’ 
and 
inserting 
‘‘section 
5338(a)(2)(F)’’; 
(B) striking ‘‘and contracts’’ and inserting 
‘‘, contracts, cooperative agreements, or other 
transactions’’; and 
(C) striking ‘‘5317,’’; 
(3) in the first sentence of subsection (a)(3), by 
striking all that follows ‘‘chapter’’; 
(4) by striking subsection (a)(4)(B); 
(5) by redesignating subsection (a)(4)(C) as 
subsection (a)(4)(B); and
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(6) in subsection (b), by striking ‘‘or contract’’ 
and all that follows in the first sentence, and insert-
ing ‘‘, contract, cooperative agreement, or other 
transaction under subsection (a) of this section or 
section 5312.’’
(b) CONFORMING AMENDMENTS.—The item relating 
to section 5314 in the table of sections is amended to read 
as follows:
‘‘5314. National research programs.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE. 
Section 5315 is amended—
(1) in subsection (a)—
(A) by striking ‘‘public mass transpor-
tation’’ and inserting ‘‘public transportation’’ 
each place it appears; 
(B) by striking ‘‘mass’’ after ‘‘Govern-
ment-aid’’ and inserting ‘‘public’’; and 
(C) in paragraphs (1), (6), (7), and (10) 
by striking ‘‘mass’’ each place it appears before 
‘‘transportation’’ and inserting ‘‘public’’; 
(2) by striking subsection (b); 
(3) by redesignating subsections (c) and (d) as 
subsections (b) and (c), respectively; and 
(4) in subsection (c), as redesignated, by strik-
ing ‘‘mass’’ each place it appears.
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SEC. 3017. BUS TESTING FACILITY. 
Section 5318 is amended—
(1) by revising subsection (a) to read as follows: 
‘‘(a) FACILITY.—The Secretary of Transportation 
shall maintain one facility for testing a new bus model 
for maintainability, reliability, safety, performance (in-
cluding braking performance), structural integrity, fuel 
economy, emissions, and noise.’’; 
(2) in subsection (d), by striking ‘‘section 
5309(m)(1)(C)’’ and inserting section 5338(a)(2)(I); 
and 
(3) by revising subsection (e) to read as follows: 
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be 
obligated or expended to acquire a new bus model only 
if a bus of that model has been tested at the facility main-
tained by the Secretary under subsection (a).’’. 
SEC. 3018. BICYCLE FACILITIES. 
Section 5319 is amended by striking ‘‘5309(h),’’ and 
inserting ‘‘ 5309(g),’’. 
SEC. 3019. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT 
PROJECT. 
Section 5320 is repealed. 
SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE. 
Section 5323 is amended—
(1) In paragraph (a)(1), by—
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(A) striking ‘‘private mass transportation 
company’’ each place it appears and inserting 
‘‘private company engaged in public transpor-
tation’’;
(B) striking ‘‘mass transportation equip-
ment or a mass transportation facility’’ and in-
serting ‘‘a public transportation facility or 
equipment’’; and 
(C) striking ‘‘mass transportation com-
pany’’ and inserting ‘‘public transportation 
company’’; 
(2) in subsection (a)(1)(B), by striking ‘‘private 
mass transportation companies’’ and inserting ‘‘pri-
vate companies engaged in public transportation’’; 
(3) in subsection (b)—
(A) in paragraph (1), 
(i) by striking ‘‘or loan’’; and 
(ii) by striking ‘‘a certificate of the 
applicant’’ and inserting ‘‘in the environ-
mental record for the project evidence’’; 
and 
(B) in subparagraph (A) of paragraph (1), 
by striking ‘‘a public hearing with adequate 
prior notice’’ and inserting ‘‘public review and 
comment on the project;
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(C) by amending subparagraph (B) of 
paragraph (1) to read as follows: 
‘‘(B) held a public hearing on the project 
if it affects significant economic, social, or envi-
ronmental interests;’’; 
(4) in paragraph (2), by striking the last sen-
tence; 
(5) by revising subsection (c) to read as follows: 
‘‘(c) NEW TECHNOLOGY.—A grant for financial as-
sistance under this chapter for new technology, including 
innovative or improved products, techniques, or methods 
is subject to the requirements of section 5309 of this title 
to the extent the Secretary considers appropriate.’’; 
(6) in subsection (d)—
(A) by revising paragraph (2) to read as 
follows: 
‘‘(2) The Secretary may waive paragraph (1) of 
this subsection if the Secretary finds that the provi-
sion of intercity charter bus transportation service 
by the applicant, governmental authority, or publicly 
owned operator is necessary to meet the transpor-
tation needs of the elderly and individuals with dis-
abilities.’’; and 
(B) by adding at the end the following 
paragraph:
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‘‘(3) On receiving a complaint about a violation 
of the agreement required under paragraph (1), the 
Secretary shall investigate and decide whether a vio-
lation has occurred. If the Secretary decides that a 
violation has occurred, the Secretary shall correct 
the violation under terms of the agreement. In addi-
tion to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator from 
receiving Federal transit assistance in an amount 
the Secretary deems appropriate.’’; 
(7) by striking subsection (e); 
(8) by redesignating subsection (f) as (e); 
(9) in subsection (e), as redesignated—
(A) by revising paragraph (2) to read as 
follows: 
‘‘(2) The Secretary may waive paragraph (1) of 
this subsection if the Secretary finds that the provi-
sion of schoolbus transportation by the applicant, 
governmental authority, or publicly owned operator 
is necessary to meet the transportation needs of stu-
dents with disabilities.’’; and 
(B) by adding at the end the following 
paragraph: 
‘‘(3) If the Secretary finds that an applicant, 
governmental authority, or publicly owned operator
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has violated the agreement required under para-
graph (1) of this subsection, the Secretary shall bar 
a recipient or an operator from receiving Federal 
transit assistance in an amount the Secretary deems 
appropriate.’’; 
(10) by revising subsection (f) to read as fol-
lows: 
‘‘(f) BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—
‘‘(1) Notwithstanding any other provision of 
law, a recipient of assistance under sections 5307 or 
5309 of this chapter, may use the proceeds from the 
issuance of revenue bonds as part of the local 
matching funds for a capital project. 
‘‘(2) The Secretary may reimburse an eligible 
recipient for deposits of bond proceeds in a debt 
service reserve that recipient established pursuant to 
section 5302(a)(1a)(K) of this title from amounts 
made available to the recipient under sections 5307 
or 5309 of this title.’’; 
(11) in subsection (g), by—
(A) striking ‘‘(f)’’ and inserting ‘‘(e)’’; 
(B) striking ‘‘103(e)(4) and’’ in the first 
and second sentence and inserting ‘‘133’’; and
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(C) 
striking 
(f)(1)(C) 
and 
inserting 
‘‘(e)(1)(C)’’; 
(12) by revising subsection (h) to read as fol-
lows: 
‘‘(h) TRANSFER OF LANDS OR INTERESTS IN LANDS 
OWNED BY THE UNITED STATES.—
‘‘(1) If the Secretary determines that any part 
of the lands or interests in lands owned by the 
United States and made available as a result of a 
military base closure is necessary for transit pur-
poses eligible under this chapter, including corridor 
preservation, the Secretary shall file with the Sec-
retary of the Department supervising the adminis-
tration of such lands or interests in lands a map 
showing the portion of such lands or interests in 
lands which is desired to be transferred for public 
transportation purposes. 
‘‘(2) If within four months after such filing, the 
Secretary of such Department shall not have cer-
tified to the Secretary that the proposed appropria-
tion of such land is contrary to the public interest 
or inconsistent with the purposes for which such 
land has been reserved, or shall have agreed to the 
appropriation and transfer under conditions which 
the Secretary of such Department deems necessary
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for the adequate protection and utilization of the re-
serve, then such land and materials may be appro-
priated and transferred to a State, or local govern-
ment, or public transportation operator for such 
purposes and subject to the conditions so specified. 
‘‘(3) If at any time such lands are no longer 
needed for public transportation purposes, notice 
shall be given by the State, or local government, or 
public transportation operator that received the 
land, to the Secretary, and such lands shall imme-
diately revert to the control of the Secretary of the 
Department from which the land was originally 
transferred.’’; 
(13) in subsection (j), 
(A) by revising paragraph (1) to read as 
follows: 
‘‘(1)(A) The Secretary may obligate an amount 
that may be appropriated to carry out this chapter 
for a project only if the steel, iron, rolling stock, and 
components and subcomponents of the rolling stock 
used in the project are produced in the United 
States. 
‘‘(B) When procuring rolling stock (including 
train control, communication, and traction power 
equipment) under this chapter—
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‘‘(i) the cost of components and subcompo-
nents produced in the United States shall be 
more than 60 percent of the cost of all compo-
nents of the rolling stock; and 
‘‘(ii) final assembly of the rolling stock 
shall occur in the United States. 
‘‘(C) In this subsection, labor costs involved in 
final assembly are not included in calculating the 
cost of components.’’; 
(B) in paragraph (2)(B)—
(i) by striking ‘‘and goods’’ and in-
serting ‘‘rolling stock, and the components 
and subcomponents of rolling stock’’; and 
(ii) by adding ‘‘or’’ at the end; 
(C) by striking paragraph (2)(C); 
(D) by redesignating paragraph (2)(D) as 
paragraph (2)(C); 
(E) by striking paragraph (3) and redesig-
nating paragraphs (4), (5), (6), and (7) as 
paragraphs (3), (4), (5), and (6), respectively; 
and 
(F) in paragraph (4), as redesignated, by 
striking ‘‘Intermodal Surface Transportation 
Efficiency Act of 1991 (Public Law 102–240, 
105 Stat. 1914’’ and inserting ‘‘Safe, Account-
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able, Flexible, and Efficient Transportation Eq-
uity Act of 2003’’; 
(14) by revising subsection (l) to read as fol-
lows: 
‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001 
of title 18, U.S.C., applies to a certificate, submission, or 
statement provided under this chapter. The Secretary may 
terminate financial assistance under this chapter and seek 
reimbursement directly, or by offsetting amounts, avail-
able under this chapter, when a false or fraudulent state-
ment or related act within the meaning of section 1001 
is made in connection with a Federal transit program.’’; 
(15) in subsection (m), by inserting at the end 
the following: ‘‘Requirements to perform preaward 
and postdelivery reviews of rolling stock purchases to 
ensure compliance with subsection (j) of this section 
do not apply to private nonprofit organizations or to 
grantees serving areas with fewer than one million 
people.’’; 
(16) in subsection (o) by striking ‘‘the Trans-
portation Infrastructure Finance and Innovation Act 
of 1998’’ and inserting ‘‘23 U.S.C. 188’’. 
SEC. 3021. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read 
as follows:
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‘‘§ 5324. Special provisions for capital projects 
‘‘(a) REAL PROPERTY
AND RELOCATION SERV-
ICES.—Whenever real property is acquired and furnished 
as a required contribution incident to a project, the Sec-
retary may not approve the application for financial assist-
ance unless the applicant has made all payments and pro-
vided all assistance and assurances as are required of a 
State agency under Sections 210 and 305 of the Uniform 
Relocation Assistance and Real Property Acquisition Poli-
cies Act, as amended (Uniform Act). The Secretary must 
be advised of specific references to any State law that are 
believed to be an exception to Sections 301 or 302 of the 
Uniform Act. 
‘‘(b) ADVANCE REAL PROPERTY ACQUISITIONS.—
‘‘(1) The Secretary may participate in the ac-
quisition of real property prior to completion of the 
environmental reviews for any project that may use 
the property if the Secretary determines that exter-
nal market forces are jeopardizing the potential use 
of the property for the project, given any of the fol-
lowing conditions—
‘‘(A) there are offers on the open real es-
tate market to convey that property for a use 
or uses incompatible with the project under 
study;
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‘‘(B) there is an imminent threat of devel-
opment or redevelopment of the property for 
use or uses incompatible with the project under 
study; 
‘‘(C) recent appraisals reflect a rapid in-
crease in the fair market value of the property; 
‘‘(D) the property, because it is located 
near an existing transportation facility, is likely 
to be developed, but also likely to be needed for 
a future transportation improvement; or 
‘‘(E) the property owner can demonstrate 
that, for health, safety, or financial reasons, re-
taining ownership of the property poses an 
undue hardship on the owner in comparison to 
other affected property owners and requests the 
acquisition to alleviate that hardship. 
‘‘(2) Property acquired in accordance with this 
subsection may not be developed in anticipation of 
the project until the Secretary has complied with the 
National Environmental Policy Act and the applica-
ble provisions of the Department of Transportation 
Act for protection of publicly owned park lands, 
wildlife and waterfowl refuges, and historic sites. 
‘‘(3) The Secretary shall limit the size and 
number of properties acquired in accordance with
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this subsection as necessary to avoid any prejudice 
to the Secretary’s objective evaluation of project al-
ternatives. 
‘‘(4) An acquisition undertaken pursuant to this 
section shall be considered to be an exempt project 
under section 176 of the Clear Air Act and its im-
plementing regulations. 
‘‘(c) RAILROAD CORRIDOR PRESERVATION.—
‘‘(1) The Secretary may assist an applicant in 
the acquisition of a pre-existing railroad right-of-way 
prior to completion of the environmental reviews for 
any project that may use the right-of-way if the ac-
quisition is otherwise permitted under Federal law; 
furthermore, the Secretary may establish restrictions 
on such an acquisition as the Secretary deems nec-
essary and appropriate. 
‘‘(2) Railroad right-of-way acquired in accord-
ance with this subsection may not be developed in 
anticipation of the project until the Secretary has 
complied with the National Environmental Policy 
Act and the applicable provisions of the Department 
of Transportation Act for protection of publicly 
owned park lands, wildlife and waterfowl refuges, 
and historic sites.
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‘‘(d) CONSIDERATION OF ECONOMIC, SOCIAL, AND 
ENVIRONMENTAL INTERESTS.—
‘‘(1) In carrying out section 5301(e) of this 
chapter, the Secretary shall cooperate and consult 
with the Secretaries of the Interior, Housing and 
Urban Development, and the Administrator of the 
Environmental Protection Agency on each project 
that may have a substantial impact on the environ-
ment. 
‘‘(2) In performing environmental reviews, the 
Secretary shall consider the public comments on a 
project submitted under section 5323(b) of this title 
and ensure that an adequate opportunity to present 
views was given to all parties having a significant 
economic, social, or environmental interest in the 
project, and that the project application includes a 
record of—
‘‘(A) the environmental impact of the pro-
posal;
‘‘(B) adverse environmental effects that 
cannot be avoided; 
‘‘(C) alternatives to the proposal; and 
‘‘(D) irreversible and irretrievable impacts 
on the environment.
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‘‘(3)(A) The Secretary may approve an applica-
tion for financial assistance for a capital project in 
accordance with this chapter only if the Secretary 
makes written findings, after reviewing the environ-
mental record included with the project application, 
that—
‘‘(i) an adequate opportunity to present 
views was given to all parties having a signifi-
cant economic, social, or environmental interest; 
‘‘(ii) the preservation and enhancement of 
the environment and the interest of the commu-
nity in which the project is located were consid-
ered; and 
‘‘(iii) no adverse environmental effect is 
likely to result from the project, or no feasible 
and prudent alternative to the effect exists and 
all reasonable steps have been taken to mini-
mize the effect. 
‘‘(B) The Secretary’s findings under subpara-
graph (A) of this paragraph shall be made a matter 
of public record.’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 5324 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5324. Special provisions for capital projects.’’.
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SEC. 3022. CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—Section 5325 is amended—
(1) by revising subsection (a) to read as follows: 
‘‘(a) COMPETITION.—Recipients of Federal assist-
ance under this chapter shall conduct all procurement 
transactions in a manner providing full and open competi-
tion as determined by the Secretary.’’; 
(2) by revising subsection (b) to read as follows: 
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN 
CONTRACTS.—A contract or requirement for program 
management, architectural engineering, construction man-
agement, a feasibility study, and preliminary engineering, 
design, architectural, engineering, surveying, mapping, or 
related services for a project for which Federal assistance 
is provided under this chapter shall be awarded in the 
same way as a contract for architectural and engineering 
services is negotiated under chapter 11 of title 40, U.S.C., 
or an equivalent qualifications-based requirement of a 
State. This subsection does not apply to the extent a State 
has adopted or adopts by law a formal procedure for pro-
curing those services. When awarding such contracts, re-
cipients of assistance under this chapter shall maximize 
efficiencies of administration by accepting non-disputed 
audits conducted by other governmental agencies as fol-
lows:
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‘‘(1) Any contract or subcontract awarded 
under this chapter shall be performed and audited in 
compliance with cost principles contained in the 
Federal Acquisition Regulation, part 31 of title 48, 
Code of Federal Regulations. 
‘‘(2) Instead of performing its own audits, a re-
cipient of funds under a contract or subcontract 
awarded under this chapter shall accept indirect cost 
rates established in accordance with the Federal Ac-
quisition Regulations for one-year applicable ac-
counting periods by a cognizant Federal or State 
government agency, if such rates are not currently 
under dispute. 
‘‘(3) Once a firm’s indirect cost rates are ac-
cepted under this paragraph, the recipient of the 
funds shall apply such rates for the purposes of con-
tract estimation, negotiation, administration, report-
ing, and contract payment, and shall not be limited 
by administrative or de facto ceilings. 
‘‘(4) A recipient of funds requesting or using 
the cost and rate data described in paragraph (3) 
shall notify any affected firm before such request or 
use. Such data shall be confidential and shall not be 
accessible or provided, in whole or in part by the 
group of agencies sharing cost data under this para-
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graph, except by written permission of the audited 
firm. If prohibited by law, such cost and rate data 
shall not be disclosed under any circumstances.’’; 
(3) by inserting new subsections (d) through 
(h), after subsection (c), to read as follows: 
‘‘(d) DESIGN-BUILD SYSTEM PROJECTS.— 
‘‘(1) ‘Design-build system project’ means a 
project under which a recipient enters into a con-
tract with a seller, firm, or consortium of firms to 
design and build a public transportation system or 
an operable segment thereof that meets specific per-
formance criteria. Such project may also include an 
option to finance, or operate for a period of time, 
the system or segment or any combination of design-
ing, building, operating, or maintaining such system 
or segment. 
‘‘(2) Government financial assistance under this 
chapter may be made available for the capital costs 
of a design-build system project after the recipient 
complies with Government requirements. 
‘‘(e) MULTIYEAR ROLLING STOCK.—
‘‘(1) A recipient procuring rolling stock with 
Government financial assistance under this chapter 
may make a multiyear contract, including options, to
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buy not more than 5 years of requirements for roll-
ing stock and replacement parts. 
‘‘(2) The Secretary shall allow a recipient to act 
on a cooperative basis to procure rolling stock in 
compliance with this subsection and other Govern-
ment procurement requirements. 
‘‘(f) ACQUIRING ROLLING STOCK.—A recipient of fi-
nancial assistance under this chapter may enter into a 
contract to expend that assistance to acquire rolling 
stock— 
‘‘(1) based on— 
‘‘(A) initial capital costs; or 
‘‘(B) performance, standardization, life 
cycle costs, and other factors; or 
‘‘(2) with a party selected through a competi-
tive procurement process. 
‘‘(g) EXAMINATION OF THE RECORDS.—Upon re-
quest, the Secretary and the Comptroller General, or any 
of their representatives, shall have access to and the right 
to examine and inspect all records, documents, papers, in-
cluding contracts, related to a projects for which a grant 
is made under this chapter. 
‘‘(h) GRANT PROHIBITIONS.—A grant may not be 
used to support a procurement that uses an exclusionary 
or discriminatory specification.’’.
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(b) CONFORMING AMENDMENTS.—Chapter 53 of 
title 49, United States Code, is amended by—
(1) repealing section 5326; and 
(2) striking ‘‘5326. Special Procurements.’’ in 
the table of sections for chapter 53. 
SEC. 3023. HUMAN RESOURCE PROGRAMS. 
(a) IN GENERAL.—Section 5322 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
the beginning of the first sentence of the section; 
and 
(2) by adding the following at the end: 
‘‘(b) GRANTS
TO
HIGHER
LEARNING
INSTITU-
TIONS.—
‘‘(1) The Secretary (or the Secretary of Hous-
ing and Urban Development when required by sec-
tion 5334(i) of this title) may make grants to non-
profit institutions of higher learning— 
‘‘(A) to conduct competent research and 
investigations into the theoretical or practical 
problems of urban transportation; and 
‘‘(B) to train individuals to conduct fur-
ther research or obtain employment in an orga-
nization that plans, builds, operates, or man-
ages an urban transportation system.
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‘‘(2) Research and investigations under this 
subsection include— 
‘‘(A) the design and use of urban public 
transportation systems and urban roads and 
highways; 
‘‘(B) the interrelationship between various 
modes of urban and interurban transportation; 
‘‘(C) the role of transportation planning in 
overall urban planning; 
‘‘(D) public preferences in transportation; 
‘‘(E) the economic allocation of transpor-
tation resources; and 
‘‘(F) the legal, financial, engineering, and 
esthetic aspects of urban transportation. 
‘‘(3) When making a grant under this sub-
section, the Secretary shall give preference to an in-
stitution that brings together knowledge and exper-
tise in the various social science and technical dis-
ciplines related to urban transportation problems. 
‘‘(c) FELLOWSHIPS.—
‘‘(1) The Secretary may make grants to States, 
local governmental authorities, and operators of pub-
lic transportation systems to provide fellowships to 
train personnel employed in managerial, technical,
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and professional positions in the mass transportation 
field. 
‘‘(2) A fellowship under this subsection may be 
for not more than one year of training in an institu-
tion that offers a program applicable to the public 
transportation industry. The recipient of the grant 
shall select an individual on the basis of dem-
onstrated ability and for the contribution the indi-
vidual reasonably can be expected to make to an ef-
ficient public transportation operation. A grant for 
a fellowship may not be more than the lesser of 
$65,000 or 75 percent of—
‘‘(A) tuition and other charges to the fel-
lowship recipient; 
‘‘(B) additional costs incurred by the train-
ing institution and billed to the grant recipient; 
and 
‘‘(C) the regular salary of the fellowship 
recipient for the period of the fellowship to the 
extent the salary is actually paid or reimbursed 
by the grant recipient. 
‘‘(d) OTHER GRANTS.—The Secretary may make 
grants to State and local governmental authorities for 
projects that will use innovative techniques and methods 
in managing and providing public transportation.’’.
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SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND RE-
VIEW. 
(a) 
PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—Section 5327(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
11; 
(2) in paragraph 12, by striking the ‘‘.’’ and in-
serting ‘‘; and’’; and 
(3) by adding after paragraph (12) the fol-
lowing: 
‘‘(13) safety and security management.’’. 
(b) 
LIMITATIONS
ON
USE
OF
AVAILABLE 
AMOUNTS.—Section 5327(c) is amended—
(1) in paragraph (1), 
(A) by striking ‘‘.5’’ and inserting ‘‘1’’; 
(B) by striking ‘‘5307, 5309, or 5311 of 
this title, an interstate transfer mass transpor-
tation project under section 103(e)(4) of title 
23 as in effect on September 30, 1991,’’ and in-
serting ‘‘5307–5311, 5316, or 5317 of this 
title,’’; 
(C) by striking ‘‘to make a contract’’; 
(D) by striking ‘‘a major project’’ and in-
serting ‘‘major projects’’; and
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(E) by striking ‘‘section 5307, 5309, 5311, 
or 103(e)(4)’’ and inserting ‘‘sections 5307–
5311, 5316, 5317,’’; 
(2) in paragraph (2), by inserting ‘‘and secu-
rity’’ after ‘‘safety’’; and 
(3) by redesignating paragraph (3) as (4) and 
inserting a new paragraph (3), as follows: 
‘‘(3) The Secretary shall deduct a sum in an 
amount that the Secretary determines necessary to 
administer this section from the amounts made 
available under paragraph (1) of this subsection. 
These funds shall be in addition to any other funds 
made available for these purposes, and shall remain 
available until expended.’’. 
SEC. 3025. PROJECT REVIEW. 
Section 5328 is repealed. 
SEC. 3026. INVESTIGATIONS OF SAFETY AND SECURITY 
RISK. 
(a) IN GENERAL.—Section 5329 is amended to read 
as follows: 
‘‘§ 5329. Investigation of safety and security risks 
‘‘The Secretary may conduct investigations into safe-
ty and security risks associated with a condition in equip-
ment, a facility, or an operation financed under this chap-
ter to establish the nature and extent of the condition and
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how to eliminate, mitigate, or correct it. If the Secretary 
establishes that a safety or security risk warrants further 
protective measures, the Secretary shall require the local 
governmental authority receiving amounts under this 
chapter to submit a plan for eliminating, mitigating, or
correcting it. Any such plan relating to security risks shall 
be developed in consultation with the Secretary of Home-
land Security. Financial assistance under this chapter, in 
an amount to be determined by the Secretary, may be 
withheld until a plan is approved and carried out.’’. 
(b) CONFORMING AMENDMENT.—The item relating 
to section 5329 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5329. Investigation of safety and security risks.’’.
SEC. 3027. STATE SAFETY OVERSIGHT. 
(a) IN GENERAL.—Section 5330 is amended—
(1) by striking the heading ‘‘Withholding 
Amounts for Noncompliance with Safety Require-
ments’’ and inserting ‘‘State Safety Oversight’’; 
(2) in subsection (a), by striking the text and 
inserting the following: 
‘‘This section applies only to—
‘‘(1) States that have rail fixed guideway public 
transportation systems not subject to regulation by 
the Federal Railroad Administration; and
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‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be 
subjected to regulation by the Federal Railroad Ad-
ministration.’’; 
(3) in subsection (d) by inserting ‘‘shall ensure 
uniform safety standards and enforcement and’’ 
after ‘‘affected States’’; and 
(4) by striking subsection (f). 
(b) CONFORMING AMENDMENT.—The item relating 
to section 5330 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5330. State safety oversight.’’.
SEC. 3028. SENSITIVE SECURITY INFORMATION. 
Section 40119(b) is amended—
(1) in paragraph (1)(C) by striking ‘‘transpor-
tation safety’’ and inserting ‘‘the safety of transpor-
tation facilities or infrastructure, or transportation 
employees’’; and 
(2) by adding at the end a new paragraph (3), 
to read as follows: 
‘‘(3) A State or local government may not 
enact, enforce, prescribe, issue, or continue in effect 
any law, regulation, standard, or order to the extent 
it is inconsistent with this section or regulations pre-
scribed under this section.’’.
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SEC. 3029. TERRORIST ATTACKS AND OTHER ACTS OF VIO-
LENCE AGAINST PUBLIC TRANSPORTATION 
SYSTEMS. 
(a) IN GENERAL.—Section 1993 of title 18, U.S.C., 
is amended—
(1) by striking ‘‘mass’’ in each place it appears 
before ‘‘transportation’’ and inserting ‘‘public’’; 
(2) in subsection (a)(5), by inserting ‘‘control-
ling,’’ after ‘‘operating’’; and 
(3) 
in 
subsection 
(c)(5), 
by 
striking 
‘‘5302(a)(7)’’ and inserting ‘‘5302(a)’’. 
(b) CONFORMING AMENDMENT.—The item related to 
section 1993 in the table of contents for chapter 97 of 
title 18, U.S.C. is amended to read as follows:
‘‘1993. Terrorist attacks and other acts of violence against public transportation 
systems.’’.
SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MIS-
USE TESTING. 
(a) DEFINITIONS.—Section 5331(a)(3) is amended 
by inserting after ‘‘title’’ the following: ‘‘, or sections 
2303a, 7101(i), 7302(e) of title 46, United States Code. 
The Secretary may also decide that a form of public trans-
portation is covered adequately, for employee alcohol and 
controlled substances testing purposes, under the alcohol 
and controlled substance statutes or regulations of an
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agency within the Department of Transportation or other 
Federal agency.’’. 
(b) REGULATIONS.—Section 5331(f) is amended by 
striking paragraph (3). 
SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS. 
Section 5333(b)(1) is amended by striking ‘‘5318(d), 
5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)’’ 
each place it appears and inserting ‘‘5316–5318, 
5323(a)(1), (b), and (c), 5337, and 5338(b)(3)(C)’’. 
SEC. 3032. ADMINISTRATIVE PROCEDURES. 
Section 5334 is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (9); 
(B) by striking the period at the end of 
paragraph (10) and inserting ‘‘; and’’; and 
(C) by inserting after paragraph (10) the 
following: 
‘‘(11) issue regulations as necessary to carry 
out the purposes of this chapter.’’; 
(2) by redesignating subsections (b), (c), (d), 
(e), (f), (g), (h), (i), and (j) as subsections (c), (d), 
(e), (f), (g), (h), (i), (j), and (k); 
(3) by adding a new subsection (b) after sub-
section (a), to read as follows:
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‘‘(b) PROHIBITIONS AGAINST REGULATING OPER-
ATIONS AND CHARGES.— Except as directed by the Presi-
dent for purposes of national defense or in the event of 
a national or regional emergency, the Secretary may not 
regulate the operation, routes, or schedules of a public 
transportation system for which a grant is made under 
this chapter, nor may the Secretary regulate the rates, 
fares, tolls, rentals, or other charges prescribed by any 
public or private transportation provider: Provided, how-
ever, That nothing in this subsection shall prevent the Sec-
retary from requiring a recipient of funds under this chap-
ter to comply with the terms and conditions of its Federal 
assistance agreement.’’; and 
(4) in subsection (j)(1), as redesignated, 
(A) by striking ‘‘carry’’ and inserting ‘‘ad-
vise and assist the Secretary in carrying’’; and 
(B) by striking ‘‘and (b)(1)’’ and inserting 
‘‘5322(b)(1)’’. 
SEC. 3033. REPORTS AND AUDITS. 
Section 5335 is amended—
(1) in subsection (a), by—
(A) striking ‘‘(1)’’; and 
(B) striking ‘‘(2)’’ and inserting ‘‘(b) RE-
PORTING AND UNIFORM SYSTEMS.—’’; and 
(2) by striking subsection (b).
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SEC. 3034. APPORTIONMENTS OF APPROPRIATIONS FOR 
FORMULA GRANTS. 
(a) IN GENERAL.—Section 5336 is amended by—
(1) striking subsection (d); 
(2) striking subsection (k);
(3) redesignating subsections (a) through (c) as 
subsections (b) through (d), respectively; and 
(4) adding a new subsection (a) as follows: 
‘‘(a) APPORTIONMENT
OF ALLOCATIONS.—Of the 
amounts allocated under section 5338(a)(2)(P) of this 
title—
‘‘(1) the following percentages shall be apportioned 
to each urbanized area in accordance with subsection 
(k) of this section: 
‘‘(A) One percent in fiscal year 2004. 
‘‘(B) Three percent in fiscal year 2005. 
‘‘(C) Five percent in fiscal year 2006. 
‘‘(D) Seven percent in fiscal year 2007. 
‘‘(E) Nine percent in fiscal year 2008. 
‘‘(F) Ten percent in every fiscal year 
thereafter. 
‘‘(2) the remaining portion shall be apportioned 
to each urbanized area in accordance with sub-
sections (b) through (d) of this section.’’. 
(b) BASED ON URBANIZED AREA POPULATION.—
Subsection (b), as redesignated, is amended—
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(1) by striking ‘‘Of the amount made available 
or appropriated under section 5338(a) of this title’’ 
and inserting ‘‘Of the amount to be apportioned 
under subsection (a)(2) of this section’’; and 
(2) in paragraph (2), by striking ‘‘subsections 
(b) and (c)’’ and inserting ‘‘subsections (c) and (d)’’. 
(c) BASED ON FIXED GUIDEWAY REVENUE VEHI-
CLE-MILES, ROUTE-MILES, AND PASSENGER-MILES.—
Subsection (c)(2), as redesignated, is amended by striking 
‘‘subsection (a)(2)’’ and inserting ‘‘subsection (b)(2)’’. 
(d) BASED ON BUS REVENUE VEHICLE-MILES AND 
PASSENGER-MILES.—Subsection (d), as redesignated, is 
amended by striking ‘‘subsection (a)(2)’’ and inserting 
‘‘subsection (b)(2)’’. 
(e) DATE OF APPORTIONMENT.—Subsection (e)(1) is 
amended by striking ‘‘subsections (a) and (h)(2) of section 
5338’’ and inserting ‘‘section 5338(a)(2)(P)’’. 
(f) TRANSFERS OF APPORTIONMENTS.—Subsection 
(g) is amended by striking ‘‘subsection (a)(1)’’ and insert-
ing ‘‘subsection (b)(1)’’ each time it appears. 
(g) APPORTIONMENT BASED ON INCENTIVE FAC-
TORS.—Section 5336 is amended by adding a new sub-
section (k) as follows: 
‘‘(k) APPORTIONMENT BASED ON INCENTIVE FAC-
TORS.—(1) Of the amounts apportioned under subsection
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(a)(1) of this section, the Secretary may use the following 
amounts to make grants to establish data collection sys-
tems capable of collecting the data in paragraph (3) of 
this subsection: 
‘‘(A) $25,000,000 in fiscal year 2004. 
‘‘(B) $15,000,000 in fiscal year 2005. 
‘‘(C) $5,000,000 in fiscal year 2006. 
‘‘(2) Amounts under paragraph (1) of this sub-
section not obligated within three years following the 
end of the fiscal year in which those amounts be-
came available shall be available for apportionment 
under paragraph (3) of this subsection. 
‘‘(3) The remaining amounts to be apportioned 
under subsection (a)(1) of this section shall be ap-
portioned by a formula determined by the Secretary 
that distributes funds based on increases in public 
transportation patronage. 
‘‘(4) In apportioning funds under this sub-
section, the Secretary may consider the efficiency of 
service provision in the urbanized area. 
‘‘(5) The Secretary shall not apportion any 
amounts under this subsection to an urbanized area 
that experiences a significant decline, as determined 
by the Secretary, in public transportation patronage
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by elderly individuals, individuals with disabilities, or 
low income persons.’’. 
SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY 
FACTORS. 
(a) SECTION HEADING.—Section 5337 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5337. Apportionment based on fixed guideway fac-
tors’’. 
(b) DISTRIBUTION.—The text of subsection 5337(a) 
before the first colon is amended to read as follows: 
‘‘Amounts made available under section 5338(a)(2)(N) of 
this title are apportioned as follows:’’; 
(c) IN GENERAL.—Section 5337 is amended by—
(1) striking ‘‘section 5336(b)(2)(A)’’ each place 
it appears and inserting ‘‘section 5336(c)(2)(A)’’; 
(2) striking subsection (e); and 
(3) redesignating subsection (f) as subsection 
(e). 
(c) CONFORMING AMENDMENT.—The item relating 
to section 5337 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5337. Apportionment based on fixed guideway factors.’’.
SEC. 3036. AUTHORIZATIONS. 
The text of section 5338 is amended to read as fol-
lows: 
‘‘(a) FORMULA GRANTS AND RESEARCH.—
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‘‘(1) There shall be available from the Mass 
Transit Account of the Highway Trust Fund to 
carry out sections 5305, 5307, 5308, 5310–5318, 
5322, 5335, 5505, and 5570–5575 of this title, and 
section 3038 of Public Law 105–178—
‘‘(A) $5,615,406,000 for fiscal year 2004; 
‘‘(B) $5,727,714,000 for fiscal year 2005; 
‘‘(C) $5,846,851,000 for fiscal year 2006; 
‘‘(D) $5,978,405,000 for fiscal year 2007; 
‘‘(E) $6,126,071,000 for fiscal year 2008; 
and 
‘‘(F) $6,274,935,000 for fiscal year 2009. 
‘‘(2) Of the aggregate of amounts made avail-
able under this subsection for a fiscal year—
‘‘(A) 1.25 percent shall be available to 
carry out section 5305 in the fiscal year 2004; 
‘‘(B) 2 percent shall be available to carry 
out section 5305 in fiscal years 2005 through 
2009; 
‘‘(C) the following amounts shall be avail-
able to carry out section 5335—
‘‘(i) $3,500,000 in fiscal year 2004; 
‘‘(ii) $3,700,000 in fiscal year 2005; 
‘‘(iii) $3,900,000 in fiscal year 2006; 
‘‘(iv) $4,100,000 in fiscal year 2007;
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‘‘(v) $4,300,000 in fiscal year 2008; 
and 
‘‘(vi) $4,500,000 in fiscal year 2009; 
‘‘(D) $4,849,950 shall be available for 
grants to the Alaska Railroad for improvements 
to its passenger operations in lieu of receiving 
an apportionment under section 5336 of this 
title; 
‘‘(E) $6,950,000 shall be available to carry 
out section 3038 of the Transportation Equity 
Act for the 21st Century, as amended; 
‘‘(F) the following amounts shall be avail-
able to carry out transit cooperative research 
programs under section 5313, the National 
Transit Institute under section 5315, and na-
tional research programs under sections 5312, 
5313, 5314, and 5322: 
‘‘(i) $43,750,000 in fiscal year 2004; 
‘‘(ii) 0.779 percent in fiscal years 
2005 through 2009; 
‘‘(iii) Of the amount made available 
by this paragraph— 
‘‘(I) 18.85 percent shall be avail-
able for carrying out transit coopera-
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tive research programs under section 
5313; 
‘‘(II) 9.14 percent shall be avail-
able to carry out programs under the 
National Transit Institute under sec-
tion 5315, including not more than 
$1,000,000 shall be available to carry 
out section 5315(a)(16); and 
‘‘(III) the remainder shall be 
available for carrying out national re-
search programs under sections 5312, 
5313, 5314, and 5322; 
‘‘(G) $30,000,000 shall be available to 
carry out section 5316 for each fiscal year 2005 
through 2009, based on need and supported by 
transportation financial feasibility studies and 
planning analyses; 
‘‘(H) the following amounts shall be avail-
able for the New Freedom program under sec-
tion 5317 of this title: 
‘‘(i) $145,000,000 in fiscal year 2004; 
and 
‘‘(ii) 2.582 percent in fiscal years 
2005 through 2009;
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‘‘(I) the following amounts shall be avail-
able to carry out section 5318: 
‘‘(i) $3,000,000 in fiscal year 2004; 
and 
‘‘(ii) 0.061 percent in fiscal years 
2005 through 2009; 
‘‘(J) $6,000,000 shall be available to carry 
out section 5505 of this title; 
‘‘(K) 6.4 percent shall be available to pro-
vide financial assistance for other than urban-
ized areas under section 5311; 
‘‘(L) 1.55 percent shall be available to pro-
vide financial assistance for services for elderly 
persons and persons with disabilities under sec-
tion 5310; 
‘‘(M) the following amounts shall be avail-
able to provide financial assistance for job ac-
cess and reverse commute projects under sec-
tion 5308: 
‘‘(i) $150,000,000 in fiscal year 2004; 
and 
‘‘(ii) 2.671 percent in fiscal years 
2005 through 2009; 
‘‘(N) the following amounts shall be avail-
able to provide financial assistance for urban-
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ized areas under section 5307 and apportioned 
in accordance with section 5337: 
‘‘(i) $1,214,400,000 in fiscal year 
2004; and 
‘‘(ii) 21.626 percent in fiscal years 
2005 through 2009; 
‘‘(O) $75,000,000 shall be available to 
carry out sections 5570 through 5575 in fiscal 
years 2005 through 2009; and 
‘‘(P) the remaining amount shall be avail-
able to provide financial assistance for urban-
ized areas under section 5307 and apportioned 
in accordance with section 5336. 
‘‘(b) 
MAJOR
CAPITAL
INVESTMENT
PROGRAM 
GRANTS.—
‘‘(1) There shall be available from the Mass 
Transit Account of the Highway Trust Fund to 
carry out sections 5305, and 5309—
‘‘(A) $320,594,000 for fiscal year 2004; 
‘‘(B) $327,006,000 for fiscal year 2005; 
‘‘(C) $333,808,000 for fiscal year 2006; 
‘‘(D) $341,318,000 for fiscal year 2007; 
‘‘(E) $349,749,000 for fiscal year 2008; 
and 
‘‘(F) $358,248,000 for fiscal year 2009.
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‘‘(2) In addition to amounts made available 
under paragraph (1), there are authorized to be ap-
propriated to carry out sections 5305, and 5309—
‘‘(A) $1,213,500,000 for fiscal year 2004; 
‘‘(B) $1,236,192,000 for fiscal year 2005; 
‘‘(C) $1,261,287,000 for fiscal year 2006; 
‘‘(D) $1,289,162,000 for fiscal year 2007; 
‘‘(E) $1,321,907,000 for fiscal year 2008; 
and 
‘‘(F) $1,355,219,000 for fiscal year 2009. 
‘‘(3) Of the amounts made available by and ap-
propriated under this subsection for a fiscal year—
‘‘(A) 1.25 percent shall be available to 
carry out section 5305 in the fiscal year 2004; 
‘‘(B) 2 percent shall be available to carry 
out section 5305 in fiscal years 2005 through 
2009; and 
‘‘(C) the remaining amount shall be avail-
able to carry out Major Capital Investment 
Grants under section 5309 of this title. 
‘‘(c) ADMINISTRATION.—There are authorized to be 
appropriated to carry out section 5334—
‘‘(1) $76,500,000 for fiscal year 2004; 
‘‘(2) $77,931,000 for fiscal year 2005; 
‘‘(3) $79,513,000 for fiscal year 2006;
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‘‘(4) $81,270,000 for fiscal year 2007; 
‘‘(5) $83,334,000 for fiscal year 2008; and 
‘‘(6) $85,434,000 for fiscal year 2009. 
‘‘(d) GRANTS AS CONTRACTUAL OBLIGATIONS.—
‘‘(1) A grant or contract approved by the Sec-
retary, that is financed with amounts made available 
under subsections (a), (b)(1), or (e) is a contractual 
obligation of the United States Government to pay 
the Government’s share of the cost of the project. 
‘‘(2) A grant or contract, approved by the Sec-
retary, that is financed with amounts made available 
under subsections (b)(2) or (c) is a contractual obli-
gation of the Government to pay the Government’s 
share of the cost of the project only to the extent 
that amounts are provided in advance in an appro-
priations Act. 
‘‘(e) REVENUE ALIGNED BUDGET AUTHORITY.—
‘‘(1) On October 15 of fiscal year 2006 and 
each fiscal year thereafter, the Secretary shall pro-
rate an amount of funds equal to the amount deter-
mined pursuant to section 251(b)(1)(C) of the Bal-
anced Budget and Emergency Deficit Control Act of 
1985 in a portion equal to the amount available to 
each Federal transit program for which funds are 
available from the Mass Transit Account of the
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Highway Trust Fund under subsections (a) and (b) 
of this section. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated from the 
Mass Transit Account of the Highway Trust Fund 
such sums as may be necessary to carry out this 
subsection for fiscal years beginning after September 
30, 2005. 
‘‘(f) AVAILABILITY OF AMOUNTS.—Amounts made 
available by or appropriated under subsections (a), (b), 
and (e) shall remain available until expended.’’. 
SEC. 3037. NATIONAL PARKS AND PUBLIC LANDS LEGACY 
PROJECT. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5315 the following: 
‘‘§ 5316. National parks and public lands Legacy 
Project 
‘‘(a) IN GENERAL.—
‘‘(1) The Secretary of Transportation, in con-
sultation with the Secretary of the Interior, may 
make a grant or enter into a contract, cooperative 
agreement, interagency agreement, intra-agency 
agreement, or other transaction to carry out a quali-
fied project under this section to enhance the protec-
tion of America’s National Parks and public lands
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and increase the enjoyment of those visiting the 
parks and public lands by ensuring access to all, in-
cluding the disabled, improving conservation and 
park and public land opportunities in urban areas 
through partnering with state and local govern-
ments, and improving park and public land trans-
portation infrastructure. 
‘‘(2) A grant, cooperative agreement, inter-
agency agreement, intra-agency agreement, or other 
transaction for a qualified project under this section 
shall be available to finance the leasing of equipment 
and facilities for use in public transportation, sub-
ject to any regulation that the Secretary may pre-
scribe limiting the grant or agreement to leasing ar-
rangements that are more cost-effective than pur-
chase or construction. 
‘‘(b) DEFINITIONS.—In this section—
‘‘(1) ‘eligible area’ means any federally owned 
or managed park, refuge, or recreational area that 
is open to the general public, including—
‘‘(A) a unit of the National Park System; 
‘‘(B) a unit of the National Wildlife Ref-
uge System; 
‘‘(C) a recreational area managed by the 
Bureau of Land Management; and
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‘‘(D) a recreation area managed by the 
Bureau of Reclamation. 
‘‘(2) ‘Federal land management agency’ means 
a Federal agency that manages an eligible area; 
‘‘(3) ‘public transportation’ means transpor-
tation by bus, rail, or any other publicly or privately 
owned conveyance that provides to the public general 
or special service on a regular basis, including sight-
seeing service; 
‘‘(4) ‘qualified participant’ means—
‘‘(A) a Federal land management agency; 
or 
‘‘(B) a State, tribal, or local governmental 
authority with jurisdiction over land in the vi-
cinity of an eligible area acting with the consent 
of the Federal land management agency, alone 
or in partnership with a Federal land manage-
ment agency or other governmental or non-
governmental participant; 
‘‘(5) ‘qualified project’ means a planning or 
capital project in or in the vicinity of an eligible area 
that—
‘‘(A) is an activity described in section 
5302, 5303, or 5304; 
‘‘(B) involves—
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‘‘(i) the purchase of rolling stock that 
incorporates clean fuel technology or the 
replacement of buses of a type in use on 
the date of enactment of this section with 
clean fuel vehicles; or 
‘‘(ii) the deployment of public trans-
portation vehicles that introduce innovative 
technologies or methods; 
‘‘(C) relates to the capital costs of coordi-
nating the Federal land management agency 
public transportation systems with other public 
transportation systems; 
‘‘(D) provides a nonmotorized transpor-
tation system (including the provision of facili-
ties for pedestrians, bicycles, and nonmotorized 
watercraft); 
‘‘(E) provides waterborne access within or 
in the vicinity of an eligible area, as appropriate 
to and consistent with this section; or 
‘‘(F) is any other public transportation 
project that—
‘‘(i) enhances the environment; 
‘‘(ii) prevents or mitigates an adverse 
impact on a natural resource;
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‘‘(iii) improves Federal land manage-
ment agency resource management; 
‘‘(iv) improves visitor mobility and ac-
cessibility and the visitor experience; 
‘‘(v) reduces congestion and pollution 
(including noise pollution and visual pollu-
tion); or 
‘‘(vi) conserves a natural, historical, 
or cultural resource (excluding rehabilita-
tion or restoration of a non-transportation 
facility). 
‘‘(6) ‘Secretary’ means the Secretary of Trans-
portation. 
‘‘(c) 
LIMITATION
ON
USE
OF
AVAILABLE 
AMOUNTS.—
‘‘(1) The Secretary, in consultation with the 
Secretary of the Interior, may use not more than 10 
percent of the amount made available for a fiscal 
year under section 5338(a)(2)(G) to carry out plan-
ning, research, and technical assistance under this 
section, including the development of technology ap-
propriate for use in a qualified project. 
‘‘(2) Amounts made available under this sub-
section are in addition to amounts otherwise avail-
able to the Secretary to carry out planning, re-
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search, and technical assistance under this title or 
any other provision of law. 
‘‘(3) No qualified project shall receive more 
than 12 percent of the total amount made available 
to 
carry 
out 
this 
section 
under 
section 
5338(a)(2)(G) for any fiscal year. 
‘‘(d) PLANNING PROCESS.—In undertaking a quali-
fied project under this section, 
‘‘(1) if the qualified participant is a Federal 
land management agency— 
‘‘(A) the Secretary, in cooperation with the 
Secretary of the Interior, shall develop trans-
portation planning procedures that are con-
sistent with—
‘‘(i) the metropolitan planning provi-
sions under section 5303 of this title; 
‘‘(ii) the statewide planning provisions 
under section 5304 of this title; and 
‘‘(iii) the public participation require-
ments under section 5307(e); and 
‘‘(B) in the case of a qualified project that 
is at a unit of the National Park system, the 
planning process shall be consistent with the 
general management plans of the unit of the 
National Park system; and
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‘‘(2) if the qualified participant is a State or 
local governmental authority, or more than one 
State or local governmental authority in more than 
one State, the qualified participant shall—
‘‘(A) comply with the metropolitan plan-
ning provisions under section 5303 of this title; 
‘‘(B) comply with the statewide planning 
provisions under section 5304 of this title; 
‘‘(C) comply with the public participation 
requirements under section 5307(e) of this title; 
and 
‘‘(D) consult with the appropriate Federal 
land management agency during the planning 
process. 
‘‘(e) COST SHARING.—
‘‘(1) The Secretary, in cooperation with the 
Secretary of the Interior, shall establish the share of 
assistance to be provided under this section to a 
qualified participant. 
‘‘(2) In establishing the share of assistance to 
be provided under this section, the Secretary shall 
consider—
‘‘(A) visitation levels and the revenue de-
rived from user fees in the eligible area in 
which the qualified project is carried out;
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‘‘(B) the extent to which the qualified par-
ticipant coordinates with a public transpor-
tation authority or private entity engaged in 
public transportation; 
‘‘(C) private investment in the qualified 
project, including the provision of contract serv-
ices, joint development activities, and the use of 
innovative financing mechanisms; 
‘‘(D) the clear and direct benefit to the 
qualified participant; and 
‘‘(E) any other matters that the Secretary 
considers appropriate to carry out this section. 
‘‘(3) Notwithstanding any other provision of 
law, Federal funds appropriated to any Federal land 
management agency may be counted toward the re-
mainder of the cost of a qualified project. 
‘‘(f) SELECTION OF QUALIFIED PROJECTS.—
‘‘(1) The Secretary of the Interior, after con-
sultation with and in cooperation with the Secretary, 
shall determine the final selection and funding of an 
annual program of qualified projects in accordance 
with this section. 
‘‘(2) In determining whether to include a 
project in the annual program of qualified projects, 
the Secretary of the Interior shall consider—
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‘‘(A) the justification for the qualified 
project, including the extent to which the quali-
fied project would conserve resources, prevent 
or mitigate adverse impact, and enhance the en-
vironment; 
‘‘(B) the location of the qualified project, 
to ensure that the selected qualified projects—
‘‘(i) are geographically diverse nation-
wide; and 
‘‘(ii) include qualified projects in eligi-
ble areas located in both urban areas and 
rural areas; 
‘‘(C) the size of the qualified project, to 
ensure that there is a balanced distribution; 
‘‘(D) the historical and cultural signifi-
cance of a qualified project; 
‘‘(E) safety; 
‘‘(F) the extent to which the qualified 
project would—
‘‘(i) enhance livable communities; 
‘‘(ii) reduce pollution (including noise 
pollution, air pollution, and visual pollu-
tion); 
‘‘(iii) reduce congestion; and
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‘‘(iv) improve the mobility of people in 
the most efficient manner; and 
‘‘(G) any other matters that the Secretary 
considers appropriate to carry out this section, 
including—
‘‘(i) visitation levels; 
‘‘(ii) the use of innovative financing or 
joint development strategies; and 
‘‘(iii) coordination with gateway com-
munities. 
‘‘(g) QUALIFIED PROJECTS CARRIED OUT IN AD-
VANCE.—
‘‘(1) When a qualified participant carries out 
any part of a qualified project without assistance 
under this section in accordance with all applicable 
procedures and requirements, the Secretary, in con-
sultation with the Secretary of the Interior, may pay 
the share of the net capital project cost of a quali-
fied project if—
‘‘(A) the qualified participant applies for 
the payment;
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out that part of the 
qualified project, the Secretary approves the
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plans and specifications in the same manner as 
plans and specifications are approved for other 
projects assisted under this section. 
‘‘(2)(A) The cost of carrying out part of a 
qualified project under paragraph (1) includes the 
amount of interest earned and payable on bonds 
issued by a State or local governmental authority, to 
the extent that proceeds of the bond are expended 
in carrying out that part. 
‘‘(B) The rate of interest under this paragraph 
may not exceed the most favorable rate reasonably 
available for the qualified project at the time of bor-
rowing. 
‘‘(C) The qualified participant shall certify, in 
a manner satisfactory to the Secretary, that the 
qualified participant has exercised reasonable dili-
gence in seeking the most favorable interest rate. 
‘‘(h) RELATIONSHIP TO OTHER LAWS.—
‘‘(1) A qualified participant under this section 
is subject to the requirements of section 5307 of this 
title to the extent the Secretary considers appro-
priate. 
‘‘(2) Section 5333(b) of this title shall apply, 
provided that the Secretary of Labor shall utilize a
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Special Warranty that provides a fair and equitable 
arrangement to protect the interest of employees. 
‘‘(3) The Secretary may waive the applicability 
of the Special Warranty under paragraph (B) for 
private non-profit subrecipients on a case-by-case 
basis as the Secretary deems appropriate. 
‘‘(4) A qualified participant under this section 
is subject to any other terms, conditions, require-
ments, and provisions that the Secretary determines 
to be appropriate to carry out this section, including 
requirements for the distribution of proceeds on dis-
position of real property and equipment resulting 
from a qualified project assisted under this section. 
‘‘(5) If the amount of assistance anticipated to 
be required for a qualified project under this section 
is $75,000,000 or more, the qualified participant 
shall prepare a project management plan in accord-
ance with sections 5327(a) and (b) of this title. 
‘‘(i) ASSET MANAGEMENT.—The Secretary, in con-
sultation with the Secretary of the Interior, may transfer 
the interest of the Department of Transportation in, and 
control over, all facilities and equipment acquired under 
this section to a qualified participant for use and disposi-
tion in accordance with any property management regula-
tions that the Secretary determines to be appropriate.
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‘‘(j) COORDINATION
OF RESEARCH
AND DEPLOY-
MENT OF NEW TECHNOLOGIES.—
‘‘(1) The Secretary, in cooperation with the 
Secretary of the Interior, may undertake, or make 
grants, cooperative agreements, contracts (including 
agreements with departments, agencies, and instru-
mentalities of the Federal Government) or other 
transactions for research, development, and deploy-
ment of new technologies in eligible areas that will—
‘‘(A) conserve resources; 
‘‘(B) prevent or mitigate adverse environ-
mental impact; 
‘‘(C) improve visitor mobility, accessibility, 
and enjoyment; and 
‘‘(D) reduce pollution (including noise pol-
lution and visual pollution). 
‘‘(2) The Secretary may request and receive ap-
propriate information from any source. 
‘‘(3) Grants, cooperative agreements, contracts 
or other transactions under paragraph (1) shall be 
awarded from amounts allocated under subsection 
(c)(1).’’. 
(b) CONFORMING AMENDMENTS.—The table of sec-
tions for chapter 53 is amended by inserting after the item 
relating to section 5315 the following:
‘‘5316. National parks and public lands Legacy Project.’’.
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SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILTY PROGRAM 
(a) Section 3038 of the Transportation Equity Act 
for the 21st Century, Public Law 105–178, is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM’’; 
and 
(2) by revising subsection (g) to read as follows: 
‘‘(g) FUNDING.—
‘‘(1) Of the amounts made available by or ap-
propriated under section 5338(a)(2)(E) in each fis-
cal year, 75 percent shall be available for operators 
of over-the-road buses used substantially or exclu-
sively in intercity, fixed-route over-the-road bus serv-
ice to finance the incremental capital and training 
costs of the Department of Transportation’s final 
rule regarding accessibility of over-the-road buses. 
Such amounts shall remain available until expended. 
‘‘(2) Of the amounts made available by or ap-
propriated under section 5338(a)(2)(E) in each fis-
cal year, 25 percent shall be available for operators 
of other over-the-road bus service to finance the in-
cremental capital and training costs of the Depart-
ment of Transportation’s final rule regarding acces-
sibility of over-the-road buses. Such amounts shall 
remain available until expended.’’.
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(b) CONFORMING AMENDMENTS.—The item relating 
to section 3038 in the table of sections for the Transpor-
tation Equity Act for the 21st Century is amended to read 
as follows:
‘‘Over-the-road bus accessibility program.’’.
SEC. 3039. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES. 
IN GENERAL.—Section 5310 is amended to read as 
follows: 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) The Secretary may make grants to a State 
under this section for capital public transportation 
projects planned, designed, and carried out to meet 
the special needs of elderly individuals and individ-
uals with disabilities. A State may then allocate the 
funds to—
‘‘(A) a private non-profit organization; or 
‘‘(B) a governmental authority—
‘‘(i) approved by the State to coordi-
nate services for elderly individuals and in-
dividuals with disabilities; or 
‘‘(ii) that certifies that there are not 
any nonprofit organizations readily avail-
able in the area to provide the services de-
scribed under this paragraph.
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‘‘(2) A capital public transportation project 
under this section may include acquiring public 
transportation services as an eligible capital expense.
‘‘(3) A State may use not more than 15 percent 
of the amounts apportioned under this section to ad-
minister, plan and provided technical assistance for 
a project funded under this section. 
‘‘(b) APPORTIONMENTS.—
‘‘(1) The Secretary shall apportion amounts 
made available under section 5338(a)(2)(M) of this 
title under a formula the Secretary administers that 
considers the number of elderly individuals and indi-
viduals with disabilities in each State. 
‘‘(2) The recipient may transfer any funds ap-
portioned to it under this subsection to sections 
5311(c) or 5336. Any funds transferred pursuant to 
this subsection shall be made available only for eligi-
ble projects selected under this section. 
‘‘(c) GOVERNMENT’S SHARE.—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. The remainder—
‘‘(1) may be provided from an undistributed 
cash surplus, a replacement or depreciation cash 
fund or reserve, a service agreement with a State or
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local social service agency or a private social service 
organization, or new capital; and 
‘‘(2) may be derived from amounts appropriated 
to or made available to a department or agency of 
the Federal government (other than the Department 
of Transportation, except for Federal Land Highway 
funds) that are eligible to be expended for transpor-
tation; 
‘‘(3) for purposes of paragraph (2), the prohibi-
tions on the use of funds for matching requirements 
under section 403(a)(5)(c)(vii) of the Social Security 
Act shall not apply to federal or state funds to be 
used for transportation purposes. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) A recipient of a grant under this section 
is subject to all requirements of a grant under sec-
tion 5307 of this title to the extent the Secretary 
considers appropriate. 
‘‘(2) A recipient that transfers funds to section 
5336 pursuant to subsection (b)(2) shall certify that 
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—
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‘‘(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; 
‘‘(4) A recipient of a grant under this section 
shall certify that allocations of the grant to sub-
recipients are distributed on a fair and equitable 
basis. 
‘‘(e) STATE
PROGRAM
OF
PROJECTS.—Amounts 
made available to carry out this subsection may be used 
for transportation projects to assist in providing transpor-
tation services for elderly individuals and individuals with 
disabilities that are included in a State program of 
projects. A program shall be submitted annually to the 
Secretary for approval and shall contain an assurance that 
the program provides for maximum feasible coordination 
of transportation services assisted under this section with 
transportation services assisted by other United States 
Government sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authori-
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ties to improve transportation services designed to meet 
the special needs of elderly individuals and individuals 
with disabilities. 
‘‘(g) HOMEBOUND INDIVIDUALS.—Public transpor-
tation service providers receiving assistance under this sec-
tion or 5311(c) of this title may coordinate and assist in 
regularly providing meal delivery service for homebound 
individuals if the delivery service does not conflict with 
providing public transportation service or reduce service 
to public transportation passengers. 
‘‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT.—
With the consent of the recipient currently having a facil-
ity or equipment acquired with assistance under this sec-
tion, a State may transfer the facility or equipment to any 
recipient eligible to receive assistance under this chapter 
if the facility or equipment will continue to be used as 
required under this section 
‘‘(i) FARES NOT REQUIRED.—This chapter does not 
require that elderly individuals and individuals with dis-
abilities be charged a fare.’’. 
SEC. 3040. JOB ACCESS AND REVERSE COMMUTE. 
(a) Section 5308 is amended to read as follows: 
‘‘§ 5308. Formula grants for job access and reverse 
commute projects. 
‘‘(a) DEFINITIONS.—In this section—
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‘‘(1) ‘recipient’ means a State that receives a 
grant under this section directly; and 
‘‘(2) ‘subrecipient’ means a State or local public 
authority, a nonprofit organization, or a private op-
erator of public transportation service that may re-
ceive a grant under this section indirectly through a 
recipient, rather than directly from the Federal Gov-
ernment. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) The Secretary may make grants to a re-
cipient under this section for access to jobs and re-
verse commute projects to a recipient. 
‘‘(2) A recipient may use not more than 15 per-
cent of the amounts apportioned under this section 
to administer, plan, and provide technical assistance 
for a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
‘‘(1) The Secretary shall apportion amounts 
made available under section 5338(a)(2)(M) of this 
title under a formula the Secretary administers that 
considers the number of low income people in each 
State. 
‘‘(2) The recipient may transfer any funds ap-
portioned to it under this subsection to sections 
5311(c) or 5336. Any apportionment transferred
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pursuant to this subsection shall be made available 
for eligible job access and reverse commute projects 
under this section. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) A grant under this section is subject to the 
requirements of 5307 to the extent the Secretary 
considers appropriate. 
‘‘(2) Section 5333(b) of this title shall apply, 
provided that the Secretary of Labor shall utilize a 
Special Warranty that provides a fair and equitable 
arrangement to protect the interest of employees. 
‘‘(3) The Secretary may waive the applicability 
of the Special Warranty under paragraph (2) for 
private non-profit subrecipients on a case-by-case 
basis as the Secretary deems appropriate. 
‘‘(4) A recipient of a grant under this section 
shall certify that allocations of the grant to sub-
recipients are distributed on a fair and equitable 
basis.
‘‘(e) COMPETITIVE PROCESS.—
‘‘(1) The recipient shall conduct a statewide so-
licitation for applications for grants under this sec-
tion. 
‘‘(2) Subrecipients seeking to receive a grant 
under this section shall submit to the recipient an
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application in the form and in accordance with such 
requirements as the recipient shall establish. 
‘‘(3) Subrecipients submitting applications pur-
suant to paragraph (2) shall be selected on a com-
petitive basis. 
‘‘(f) COORDINATION.—
‘‘(1) The Secretary shall coordinate activities 
under this section with related activities under pro-
grams of other Federal departments and agencies. 
‘‘(2) A recipient that transfers funds to section 
5336 pursuant to subsection (c)(2) shall certify that 
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.—
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‘‘(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—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Federal government (other than 
the Department of Transportation, except for 
Federal Land Highway funds) that are eligible 
to be expended for transportation. 
‘‘(2) A recipient carrying out a program of op-
erating assistance under this section may not limit 
the level or extent of use of the Government grant 
for the payment of operating expenses. 
‘‘(3) For purposes of paragraph (1)(B) of this 
section, the prohibitions on the use of funds for
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matching 
requirements 
under 
section 
403(a)(5)(c)(vii) of the Social Security Act shall not 
apply to federal or state funds to be used for trans-
portation purposes.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for Chapter 53 is amended after the item relating 
to section 5307 to read as follows:
‘‘5308. Formula grants for job access and reverse commute projects.’’.
TITLE IV—MOTOR CARRIER SAFETY 
SEC. 4001. AUTHORIZATION OF APPROPRIATIONS. 
(a) ADMINISTRATIVE EXPENSES.—Section 31104 of 
title 49, United States Code, is amended by adding the 
following at the end: 
‘‘(i) ADMINISTRATIVE EXPENSES.—
‘‘(1) There are authorized to be appropriated 
from the Highway Trust Fund (other than the Mass 
Transit Account) for the Secretary of Transpor-
tation to pay administrative expenses of the Federal 
Motor Carrier Safety Administration—
‘‘(A) $224,406,000 for fiscal year 2004; 
‘‘(B) $228,000,000 for fiscal year 2005; 
‘‘(C) $233,000,000 for fiscal year 2006; 
‘‘(D) $239,000,000 for fiscal year 2007; 
‘‘(E) $244,000,000 for fiscal year 2008; 
and 
‘‘(F) $250,000,000 for fiscal year 2009.
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‘‘(2) The funds authorized by this subsection 
shall be used for personnel costs; administrative in-
frastructure; rent; information technology; programs 
for research and technology, information manage-
ment, regulatory development (including a medical 
review board and rules for medical examiners), per-
formance and registration information system man-
agement (PRISM), a study of driver availability and 
retention, and outreach and education; other oper-
ating expenses and similar matters; and such other 
expenses as may from time to time become necessary 
to implement statutory mandates not funded from 
other sources. 
‘‘(3) The amounts made available under this 
section shall remain available until expended. 
‘‘(4) Authorizations from the Highway Trust 
Fund (other than the Mass Transit Account) to 
carry out subtitle IV, Part B, and subtitle VI, Part 
B, of this title, or the provisions of subtitle IV of the 
‘Safe, Accountable, Flexible, and Efficient Transpor-
tation Equity Act of 2003’, shall be available for ob-
ligation on the date of their apportionment or alloca-
tion or on October 1 of the fiscal year for which they 
are authorized, whichever occurs first.’’.
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(b) AMENDMENT TO TITLE 23.—Section 104(a)(1) 
of title 23, United States Code, is amended by—
(1) deleting subparagraph (B); 
(2) deleting the designation ‘‘(A)’’ at the begin-
ning of subparagraph (A) and redesignating sub-
paragraphs (A)(i) and (ii) as subparagraphs (A) and 
(B), respectively; and 
(3) deleting ‘‘; and’’ at the end of subparagraph 
(B), as so redesignated, and inserting a period. 
(c) GRANT PROGRAMS.—There are authorized to be 
appropriated from the Highway Trust Fund (other than 
the Mass Transit Account) for the following Federal 
Motor Carrier Safety Administration programs—
(1) Commercial driver’s license/driver improve-
ment program grants under section 4002(c)—
(A) $22,000,000 for fiscal year 2004; 
(B) $22,000,000 for fiscal year 2005; 
(C) $23,000,000 for fiscal year 2006; 
(D) $23,000,000 for fiscal year 2007; 
(E) $24,000,000 for fiscal year 2008; and 
(F) $25,000,000 for fiscal year 2009. 
(2) Border enforcement grants under section 
4002(b)—
(A) $ 32,000,000 for fiscal year 2004; 
(B) $ 33,000,000 for fiscal year 2005;
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(C) $ 33,000,000 for fiscal year 2006; 
(D) $ 34,000,000 for fiscal year 2007; 
(E) $ 35,000,000 for fiscal year 2008; and 
(F) $ 36,000,000 for fiscal year 2009. 
(3) Performance and registration information 
system management (PRISM) grant program under 
section 4016— 
(A) $4,000,000 for fiscal year 2004; 
(B) $4,000,000 for fiscal year 2005; 
(C) $4,000,000 for fiscal year 2006; 
(D) $4,000,000 for fiscal year 2007; 
(E) $4,000,000 for fiscal year 2008; and 
(F) $4,000,000 for fiscal year 2009. 
(d) PERIOD OF AVAILABILITY.—The amounts made 
available under subsection (c) of this section shall remain 
available until expended. 
(e) CONTRACT AUTHORITY.—Authorizations from 
the Highway Trust Fund (other than the Mass Transit 
Account) to carry out subsection (c) of this section shall 
be available for obligation on the date of their apportion-
ment or allocation or on October 1 of the fiscal year for 
which they are authorized, whichever occurs first. Ap-
proval by the Secretary of a grant with funds made avail-
able under subsection (c) of this section imposes upon the 
United States Government a contractual obligation for
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payment of the Government’s share of costs incurred in 
carrying out the objectives of the grant. 
SEC. 4002. MOTOR CARRIER SAFETY GRANTS. 
(a) MOTOR CARRIER SAFETY ASSISTANCE PRO-
GRAM.—
(1) Section 31102 of title 49, United States 
Code, is amended— 
(A) in subsection (b)(1), by amending 
paragraph (A) to read as follows: 
‘‘(A) implements performance-based activi-
ties.’’; 
(B) in subsection (b)(1), by deleting ‘‘and’’ 
at the end of paragraph (S), replacing the pe-
riod at the end of paragraph (T) with a semi-
colon, and adding new paragraphs (U) and (V), 
to read as follows: 
‘‘(U) provides that the State will include in 
the training manual for the licensing examina-
tion to drive a non-commercial motor vehicle 
and a commercial motor vehicle, information on 
best practices for driving safely in the vicinity 
of commercial motor vehicles and in the vicinity 
of non-commercial vehicles, respectively; and 
‘‘(V) provides that the State will enforce 
the registration requirements of 49 U.S.C.
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13902 by placing out of service any vehicle dis-
covered to be operating without registration or 
beyond the scope of its registration.’’; and 
(C) by revising subsection (c) to read as 
follows: 
‘‘(c) USE OF GRANTS TO ENFORCE OTHER LAWS.—
A State may use amounts received under a grant under 
subsection (a) of this section for the following activities: 
‘‘(1) If the activities are carried out in conjunc-
tion with an appropriate inspection of the commer-
cial motor vehicle to enforce Government or State 
commercial motor vehicle safety regulations: 
‘‘(A) Enforcement of commercial motor ve-
hicle size and weight limitations at locations 
other than fixed weight facilities, at specific lo-
cations such as steep grades or mountainous 
terrains where the weight of a commercial 
motor vehicle can significantly affect the safe 
operation of the vehicle, or at ports where inter-
modal shipping containers enter and leave the 
United States. 
‘‘(B) Detection of the unlawful presence of 
a controlled substance (as defined under section 
102 of the Comprehensive Drug Abuse Preven-
tion and Control Act of 1970 (21 U.S.C. 802))
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in a commercial motor vehicle or on the person 
of any occupant (including the operator) of the 
vehicle. 
‘‘(2) Documented enforcement of State traffic 
laws and regulations designed to promote the safe 
operation of commercial motor vehicles, including 
documented enforcement of such laws and regula-
tions against non-commercial motor vehicles when 
necessary to promote the safe operation of commer-
cial motor vehicles.’’. 
(2) Section 31103(b) of title 49, United States 
Code, is amended to read as follows: 
‘‘(b) OTHER ACTIVITIES.—
‘‘(1) From the amounts designated under sec-
tion 31104(f)(2), the Secretary may make a grant to 
a State agency, local government, or other person 
for the full cost of research, development, dem-
onstration projects, public education, and other spe-
cial activities and projects relating to commercial 
motor vehicle safety that are of benefit to all juris-
dictions or designed to address national safety con-
cerns and circumstances. 
‘‘(2) From the amounts designated under sec-
tion 31104(f)(3), the Secretary may allocate safety
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performance incentive funds to States without re-
quiring a matching contribution from such States. 
‘‘(3) From the amounts designated under sec-
tion 31104(f)(4), the Secretary may allocate new en-
trant motor carrier audit funds to States and local 
governments without requiring a matching contribu-
tion from such States or local governments. How-
ever, the Secretary may withhold such funds from a 
State or local government that is unable to use gov-
ernment employees to conduct new entrant motor 
carrier audits, and may instead utilize the funds di-
rectly to conduct audits in those jurisdictions.’’. 
(3) Section 31104(a) of title 49, United States 
Code, is amended to read as follows: 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated from the Highway Trust Fund (other than the 
Mass Transit Account) to carry out section 31102:
‘‘(1) Not more than $164,594,000 for fiscal 
year 2004. 
‘‘(2) Not more than $168,000,000 for fiscal 
year 2005. 
‘‘(3) Not more than $172,000,000 for fiscal 
year 2006. 
‘‘(4) Not more than $176,000,000 for fiscal 
year 2007.
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‘‘(5) Not more than $180,000,000 for fiscal 
year 2008. 
‘‘(6) Not more than $184,000,000 for fiscal 
year 2009.’’. 
(4) Section 31104(f) is amended by revising 
paragraph (2) and adding new paragraphs (3) and 
(4), to read as follows: 
‘‘(2) HIGH-PRIORITY
ACTIVITIES.—The Sec-
retary may designate up to 10 percent of amounts 
available for allocation under paragraph (1) for 
States, local governments, and other persons for car-
rying out high priority activities and projects that 
improve commercial motor vehicle safety and compli-
ance with commercial motor vehicle safety regula-
tions, including activities and projects that are na-
tional in scope, increase public awareness and edu-
cation, or demonstrate new technologies. The 
amounts designated under this paragraph shall be 
allocated by the Secretary to State agencies, local 
governments, and other persons that use and train 
qualified officers and employees in coordination with 
State motor vehicle safety agencies. Allocations 
under this paragraph do not require a matching con-
tribution from a State, local government, or other 
person.
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‘‘(3) SAFETY PERFORMANCE INCENTIVE PRO-
GRAMS.—The Secretary may designate up to 10 per-
cent of the amounts available for allocation under 
paragraph (1) for safety performance incentive pro-
grams for States. The Secretary shall establish safe-
ty performance criteria to be used to distribute in-
centive program funds. Such criteria shall include, 
at a minimum, reduction in the number and rate of 
fatal accidents involving commercial motor vehicles. 
Allocations under this paragraph do not require a 
matching contribution from a State. 
‘‘(4) NEW
ENTRANT
AUDITS.—The Secretary 
may designate up to $17,000,000 of the amounts 
available for allocation under paragraph (1) for au-
dits of new entrant motor carriers conducted pursu-
ant to section 210 of the Motor Carrier Safety Im-
provement Act of 1999, 113 Stat. 1764. Allocations 
under this paragraph do not require a matching con-
tribution from a State or local government. 
(b) GRANTS TO STATES FOR BORDER ENFORCE-
MENT.—Chapter 311 of title 49, United States Code, is 
amended by revising section 31107 to read as follows: 
‘‘§ 31107. Border enforcement grants 
‘‘(a) GENERAL AUTHORITY.—From the funds au-
thorized by sections 4001(c)(2) of the Safe, Accountable,
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Flexible, and Efficient Transportation Equity Act of 
2003, the Secretary may make a grant in a fiscal year 
to a State, except as otherwise provided in subsection (c), 
that shares a border with another country for carrying out 
border commercial motor vehicle safety programs and re-
lated enforcement activities and projects. 
‘‘(b) MAINTENANCE OF EXPENDITURES.—Except as 
otherwise provided in subsection (c), the Secretary may 
make a grant to a State under this section only if the 
State agrees that the total expenditure of amounts of the 
State and political subdivisions of the State, exclusive of 
United States Government amounts, for carrying out bor-
der commercial motor vehicle safety programs and related 
enforcement activities and projects will be maintained at 
a level at least equal to the average level of that expendi-
ture by the State and political subdivisions of the State 
for the last two State or Federal fiscal years before Octo-
ber 1, 2003. 
‘‘(c) GOVERNMENT
SHARE.—The Secretary may 
make a grant to a State agency, local government, or other 
person for the full cost of research, development, dem-
onstration projects, public education, and other special ac-
tivities and projects relating to cross-border operations of 
commercial motor vehicles that are beneficial to all juris-
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dictions or designed to address national safety concerns 
and circumstances. 
‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts made 
available to a State under section 4001(c)(2) of the Safe, 
Accountable, Flexible, and Efficient Transportation Eq-
uity Act of 2003 to carry out this section shall remain 
available until expended. 
‘‘(e) GRANTS AS CONTRACTUAL OBLIGATIONS.—Ap-
proval by the Secretary of a grant with funds made avail-
able under section 4001(c)(2) of the Safe, Accountable, 
Flexible, and Efficient Transportation Equity Act of 2003 
imposes upon the United States Government contractual 
obligation for payment of the amount of the grant.’’. 
(c) GRANTS TO STATES FOR COMMERCIAL DRIVER’S 
LICENSE IMPROVEMENTS.—Chapter 313 of title 49, 
United States Code, is amended by adding new section 
31318 at the end, to read as follows: 
‘‘§ 31318. Grants for commercial driver’s license pro-
gram improvements 
‘‘(a) GENERAL AUTHORITY.—From the funds au-
thorized by section 4001(c)(1) of the Safe, Accountable, 
Flexible, and Efficient Transportation Equity Act of 
2003, the Secretary may make a grant to a State, except 
as otherwise provided in subsection (e), in a fiscal year 
to improve its implementation of the commercial driver’s
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license program, providing the State is in substantial com-
pliance with the requirements of section 31311 and this 
section. The Secretary shall establish criteria for the dis-
tribution of grants and notify the States annually of such 
criteria. 
‘‘(b) CONDITIONS.—Except as otherwise provided in 
subsection (e), a State may use a grant under this section 
only for expenses directly related to its commercial driver’s 
license program, including, but not limited to, computer 
hardware and software, publications, testing, personnel, 
training, and quality control. The grant may not be used 
to rent, lease, or buy land or buildings. The Secretary may 
allocate the funds appropriated for such grants in a fiscal 
year among the eligible States whose applications for 
grants have been approved, under criteria that best serve 
the purposes of this section. 
‘‘(c) MAINTENANCE OF EXPENDITURES.—Except as 
otherwise provided in subsection (e), the Secretary may 
make a grant to a State under this section only if the 
State agrees that the total expenditure of amounts of the 
State and political subdivisions of the State, exclusive of 
United States Government amounts, for the operation of 
the commercial driver’s license program will be maintained 
at a level at least equal to the average level of that expend-
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iture by the State and political subdivisions of the State 
for the last 2 fiscal years before October 1, 2003. 
‘‘(d) GOVERNMENT SHARE.—Except as otherwise 
provided in subsection (e), the Secretary shall reimburse 
a State, from a grant made under this section, an amount 
that is not more than 80 percent of the costs incurred 
by the State in a fiscal year in implementing the commer-
cial driver’s license improvements described in subsection 
(b). In determining those costs, the Secretary shall include 
in-kind contributions by the State. Amounts of the State 
required to be expended under subsection (c) may not be 
included as part of the share not provided by the United 
States Government. 
‘‘(e) HIGH-PRIORITY ACTIVITIES.—
‘‘(1) The Secretary may make a grant to a 
State agency, local government, or other person for 
the full cost of research, development, demonstration 
projects, public education, or other special activities 
and projects relating to commercial driver licensing 
and motor vehicle safety that are of benefit to all ju-
risdictions or designed to address national safety 
concerns and circumstances. 
‘‘(2) The Secretary may designate up to 10 per-
cent of the amounts made available under section 
4001(c)(1) of the Safe, Accountable, Flexible, and
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Efficient Transportation Equity Act of 2003 in a 
fiscal year for high-priority activities under sub-
section (e)(1). 
‘‘(f) EMERGING ISSUES.—The Secretary may des-
ignate up to 25 percent of the amounts made available 
under section 4001(c)(1) of the Safe, Accountable, Flexi-
ble, and Efficient Transportation Equity Act of 2003 in 
a fiscal year for allocation to a State agency, local govern-
ment, or other person at the discretion of the Secretary 
to address emerging issues relating to commercial driver’s 
license improvements. 
‘‘(g) GOVERNMENT SHARE.—Except as otherwise 
provided in subsections (e) and (f), all amounts available 
in a fiscal year to carry out this section shall be appor-
tioned to States according to a formula prescribed by the 
Secretary. 
‘‘(h) 
DEDUCTION
FOR
ADMINISTRATIVE
EX-
PENSES.—On October 1 of each fiscal year or as soon 
after that date as practicable, the Secretary may deduct, 
from amounts made available under section 4001(c)(1) of 
the Safe, Accountable, Flexible, and Efficient Transpor-
tation Equity Act of 2003 for that fiscal year, up to 1.25 
percent of those amounts for administrative expenses in-
curred in carrying out this section in that fiscal year.
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‘‘(i) AVAILABILITY OF AMOUNTS.—Amounts made 
available to a State under section 4001(c)(1) of the Safe, 
Accountable, Flexible, and Efficient Transportation Eq-
uity Act of 2003 to carry out this section shall remain 
available until expended. 
‘‘(j) GRANTS AS CONTRACTUAL OBLIGATIONS.—Ap-
proval by the Secretary of a grant with funds made avail-
able under section 4001(c)(1) of the Safe, Accountable, 
Flexible, and Efficient Transportation Equity Act of 2003 
imposes upon the United States Government a contractual 
obligation for payment of the amount of the grant.’’. 
(d) NONCOMPLIANCE WITH CDL REQUIREMENTS.—
Subsections (a) and (b) of section 31314 of title 49, 
United States Code, are amended to read as follows: 
‘‘(a) FIRST FISCAL YEAR.—The Secretary of Trans-
portation shall withhold up to 5 percent of the amount 
required to be apportioned to a State under section 
104(b)(1), (3), and (4) of title 23 on the first day of the 
fiscal year after the first fiscal year beginning after Sep-
tember 30, 1992, throughout which the State does not 
comply substantially with a requirement of section 
31311(a) of this title. 
‘‘(b) SECOND FISCAL YEAR.—The Secretary shall 
withhold up to 10 percent of the amount required to be 
apportioned to a State under section 104(b)(1), (3), and
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(4) of title 23 on the first day of each fiscal year after 
the 2d fiscal year beginning after September 30, 1992, 
throughout which the State does not comply substantially 
with a requirement of section 31311(a) of this title.’’. 
(e) CONFORMING AMENDMENTS.—
(1) The table of sections at the beginning of 
chapter 311 of title 49, United States Code, is 
amended by—
(A) revising the heading of Subchapter I to 
read as follows: 
‘‘Subchapter I—General Authority and State 
Grants 
and 
(B) revising the item relating to section 
31107 to read as follows:
‘‘31107. Border enforcement grants.’’.
(2) Chapter 311 of title 49, United States 
Code, is amended following the table of sections by 
striking—
‘‘Subchapter I—State Grants’’
and substituting—
‘‘Subchapter I—General Authority and State 
Grants’’. 
(3) The table of sections at the beginning of 
chapter 313 of title 49, United States Code, is
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amended after the item relating to section 31317 by 
adding the following:
‘‘31318. Grants for commercial driver’s license program improvements.’’.
SEC. 4003. HOBBS ACT. 
(a) Section 2342(3)(A) of title 28, United States 
Code, is amended to read as follows: 
‘‘(A) the Secretary of Transportation issued 
pursuant to section 2, 9, 37, or 41 of the Shipping 
Act, 1916 (46 U.S.C. App. 802, 803, 808, 835, 839, 
and 841a) or pursuant to part B or C of subtitle IV 
of title 49 [49 U.S.C. chapters 131–161] or pursu-
ant to subchapter III of chapter 311, chapter 313, 
and chapter 315 of Part B of subtitle VI of title 49; 
and’’. 
(b) Section 351(a) of title 49, United States Code, 
is amended to read as follows: 
‘‘(a) JUDICIAL REVIEW.—An action of the Secretary 
of Transportation in carrying out a duty or power trans-
ferred under the Department of Transportation Act (Pub-
lic Law 89–670, 80 Stat. 931), or an action of the Admin-
istrator of the Federal Railroad Administration, Federal 
Motor Carrier Safety Administration, or the Federal Avia-
tion Administration in carrying out a duty or power spe-
cifically assigned to the Administrator by that Act, may 
be reviewed judicially to the same extent and in the same 
way as if the action had been an action by the department,
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agency, or instrumentality of the United States Govern-
ment carrying out the duty or power immediately before 
the transfer or assignment.’’. 
(c) Section 352 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 352. Authority to carry out certain transferred du-
ties and powers 
‘‘In carrying out a duty or power transferred under 
the Department of Transportation Act (Public Law 89–
670, 80 Stat. 931), the Secretary of Transportation and 
the Administrators of the Federal Railroad Administra-
tion, the Federal Motor Carrier Safety Administration, 
and the Federal Aviation Administration have the same 
authority that was vested in the department, agency, or 
instrumentality of the United States Government carrying 
out the duty or power immediately before the transfer. An 
action of the Secretary or Administrator in carrying out 
the duty or power has the same effect as when carried 
out by the department, agency, or instrumentality.’’. 
SEC. 4004. PENALTY FOR DENIAL OF ACCESS TO RECORDS. 
Section 521(b)(2) of title 49, United States Code, is 
amended by adding new subparagraph (E) at the end, to 
read as follows: 
‘‘(E) COPYING OF RECORDS AND ACCESS 
TO
EQUIPMENT, LANDS, AND
BUILDINGS.—A
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person subject to chapter 51 of subtitle III, 
part B of subtitle IV, or part B of subtitle VI 
of this title who fails to allow the Secretary, or 
an employee designated by the Secretary, 
promptly upon demand to inspect and copy any 
record or inspect and examine equipment, 
lands, buildings and other property in accord-
ance with sections 504(c), 5121(c), and 
14122(b) of this title shall be liable to the 
United States for a civil penalty not to exceed 
$500 for each offense, and each day the Sec-
retary is denied the right to inspect and copy 
any record or inspect and examine equipment, 
lands, buildings and other property shall con-
stitute a separate offense, except that the total 
of all civil penalties against any violator for all 
offenses related to a single violation shall not 
exceed $5,000. It shall be a defense to such 
penalty that the records did not exist at the 
time of the Secretary’s request or could not be 
timely produced without unreasonable expense 
or effort. Nothing herein amends or supersedes 
any remedy available to the Secretary under 
sections 502(d), 507(c), or other provision of 
this title.’’.
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SEC. 4005. MEDICAL REVIEW BOARD AND MEDICAL EXAM-
INERS. 
(a) MEDICAL REVIEW BOARD.—
(1) ESTABLISHMENT
AND
FUNCTION.—The 
Federal Motor Carrier Safety Administrator shall es-
tablish a Medical Review Board as an advisory com-
mittee to provide the Federal Motor Carrier Safety 
Administration 
with 
medical 
advice 
and 
rec-
ommendations on driver qualification medical stand-
ards and guidelines, medical examiner education, 
and medical research. 
(2) COMPOSITION.—The Medical Review Board 
shall be appointed by the Secretary and shall consist 
of 5 members selected from medical institutions and 
private practice. The membership shall reflect exper-
tise in a variety of specialties relevant to the func-
tions of the Federal Motor Carrier Safety Adminis-
tration. 
(3) TERMINATION DATE.—The Medical Review 
Board shall remain in effect until September 30, 
2009. 
(b) MEDICAL EXAMINERS.—Section 31136(a)(3) of 
title 49, United States Code, is amended to read as fol-
lows: 
‘‘(3) the physical condition of operators of com-
mercial motor vehicles is adequate to enable them to
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operate the vehicles safely, and the periodic physical 
examinations required of such operators are per-
formed by medical examiners who have received 
training in physical and medical examination stand-
ards and are listed on a national registry maintained 
by the Department of Transportation;’’. 
SEC. 4006. ENFORCEMENT OF HOUSEHOLD GOODS REGU-
LATIONS. 
(a) DISPUTE SETTLEMENT PROGRAM FOR HOUSE-
HOLD GOODS CARRIERS.—
‘‘(1) Section 14708(a) of title 49, United States 
Code, is amended to read as follows: 
‘‘(a) SHIPPER ARBITRATION.—
‘‘(1) As a condition of registration under sec-
tion 13902 or 13903, a carrier providing transpor-
tation of household goods subject to jurisdiction 
under subchapter I or III of chapter 135 must agree 
to offer in accordance with this section to shippers 
of household goods arbitration as a means of settling 
disputes between such carriers and shippers. How-
ever, the carrier may not require the shipper to 
agree to use arbitration prior to the time that a dis-
pute arises. 
‘‘(2) If the dispute involves a claim for $5,000 
or less and the shipper requests arbitration, such ar-
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bitration shall be binding on the parties. If the dis-
pute involves a claim for more than $5,000 and the 
shipper requests arbitration, such arbitration shall 
be binding on the parties only if the carrier agrees 
to arbitration.’’. 
(2) Subsection (b)(6) of section 14708 is de-
leted, and subsections (b)(7) and (b)(8) are redesig-
nated as subsections (b)(6) and (b)(7), respectively. 
(b)(1) Chapter 147 of title 49, United States Code, 
is amended by adding new section 14710 at the end, to 
read as follows: 
‘‘§ 14710. Enforcement by State attorneys general 
‘‘(a) IN GENERAL.—A State, as parens patriae, may 
bring a civil action on behalf of its residents in an appro-
priate district court of the United States to enforce this 
part, or a regulation or order of the Secretary or Board, 
as applicable, or to impose the civil penalties authorized 
by this part or such regulation or order, whenever the at-
torney general of the State has reason to believe that the 
interests of the residents of the State have been or are 
being threatened or adversely affected by (1) a carrier or 
broker providing transportation subject to jurisdiction 
under subchapter I or III of chapter 135 of this title, or 
(2) a foreign motor carrier providing transportation reg-
istered under section 13902 of this title, that is engaged
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in household goods transportation that violates this part 
or a regulation or order of the Secretary or Board, as ap-
plicable. 
‘‘(b) NOTICE.—The State shall serve prior written 
notice of any civil action under subsection (a) or (e)(2) 
upon the Secretary or Board, as applicable, and provide 
the Secretary or Board with a copy of its complaint, except 
that if it is not feasible for the State to provide such prior 
notice, the State shall serve such notice immediately upon 
instituting such action. Upon receiving a notice respecting 
a civil action, the Secretary or Board shall have the 
right—
‘‘(1) to intervene in such action; 
‘‘(2) upon so intervening, to be heard on all 
matters arising therein; and 
‘‘(3) to file petitions for appeal. 
‘‘(c) CONSTRUCTION.—For purposes of bringing any 
civil action under subsection (a), nothing in this Act shall 
prevent an attorney general from exercising the powers 
conferred on the attorney general by the laws of such 
State to conduct investigations or to administer oaths or 
affirmations or to compel the attendance of witnesses or 
the production of documentary and other evidence. 
‘‘(d) VENUE; SERVICE OF PROCESS.—In a civil ac-
tion brought under subsection (a) of this section—
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‘‘(1) trial is in the judicial district in which—
‘‘(A) the carrier, foreign motor carrier, or 
broker operates; 
‘‘(B) the carrier, foreign motor carrier, or 
broker was authorized to provide transportation 
or service under this part when the violation oc-
curred; or 
‘‘(C) the offender is found; 
‘‘(2) process may be served without regard to 
the territorial limits of the district or of the State 
in which the action is instituted; and 
‘‘(3) a person participating with a carrier or 
broker in a violation may be joined in the civil action 
without regard to the residence of the person. 
‘‘(e) ACTIONS BY OTHER STATE OFFICIALS.—
‘‘(1) Nothing contained in this section shall 
prohibit an authorized State official from proceeding 
in State court on the basis of an alleged violation of 
any criminal statute of such State. 
‘‘(2) In addition to actions brought by an attor-
ney general of a State under subsection (a), such an 
action may be brought by officers of such State who 
are authorized by the State to bring actions in such 
State on behalf of its residents.’’.
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(2) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 147 of title 49, United 
States Code, is amended by inserting after the item relat-
ing to section 14709 the following:
‘‘14710. Enforcement by State attorneys general.’’.
SEC. 4007. REGISTRATION OF COMMERCIAL MOTOR CAR-
RIERS, FREIGHT FORWARDERS, AND BRO-
KERS. 
(a) Sections 13102(6), (7), (12) and (13) of title 49, 
United States Code, are amended to read as follows: 
‘‘(6) FOREIGN
MOTOR
CARRIER.—The term 
‘foreign motor carrier’ means a person (including a 
motor carrier of property but excluding a motor pri-
vate carrier)—
‘‘(A)(i) that is domiciled in a contiguous 
foreign country; or 
‘‘(ii) that is owned or controlled by persons 
of a contiguous foreign country; and 
‘‘(B) in the case of a person that is not a 
motor carrier of property, that provides inter-
state transportation of property by commercial 
motor vehicle, as defined in section 31132(1) of 
this title, under an agreement or contract en-
tered into with a motor carrier of property 
(other than a motor private carrier or a motor
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carrier of property described in subparagraph 
(A)). 
‘‘(7) FOREIGN MOTOR PRIVATE CARRIER.—The 
term ‘foreign motor private carrier’ means a person 
(including a motor private carrier but excluding a 
motor carrier of property)—
‘‘(A)(i) that is domiciled in a contiguous 
foreign country; or 
‘‘(ii) that is owned or controlled by persons 
of a contiguous foreign country; and 
‘‘(B) in the case of a person that is not a 
motor private carrier, that provides interstate 
transportation of property by commercial motor 
vehicle, as defined in section 31132(1) of this 
title, under an agreement or contract entered 
into with a person (other than a motor carrier 
of property or a motor private carrier described 
in subparagraph (A)).’’
‘‘(12) MOTOR CARRIER.—The term ‘motor car-
rier’ means a person providing transportation for 
compensation by commercial motor vehicle, as de-
fined in section 31132(1) of this title. 
‘‘(13) MOTOR
PRIVATE
CARRIER.—The term 
‘motor private carrier’ means a person, other than a 
motor carrier, transporting property by commercial
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motor vehicle, as defined in section 31132(1) of this 
title, when—
‘‘(A) the transportation is as provided in 
section 13501 of this title; 
‘‘(B) the person is the owner, lessee, or 
bailee of the property being transported; and
‘‘(C) the property is being transported for 
sale, lease, rent, or bailment or to further a 
commercial enterprise.’’. 
(b) Section 13903(a) of title 49, United States Code, 
is amended to read as follows: 
‘‘(a) IN GENERAL.—
‘‘(1) The Secretary of Transportation shall reg-
ister a person to provide service subject to jurisdic-
tion under subchapter III of chapter 135 as a 
freight forwarder of household goods if the Secretary 
finds that the person is fit, willing, and able to pro-
vide the service and to comply with this part and ap-
plicable regulations of the Secretary and the Board. 
‘‘(2) The Secretary may register a person to 
provide service subject to jurisdiction under sub-
chapter III of chapter 135 as a freight forwarder if 
the Secretary finds that such registration is needed 
for the protection of shippers and that the person is 
fit, willing, and able to provide the service and to
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comply with this part and applicable regulations of 
the Secretary and Board.’’. 
(c) Section 13904(a) of title 49, United States Code, 
is amended to read as follows: 
‘‘(a) IN GENERAL.—
‘‘(1) The Secretary of Transportation shall reg-
ister, subject to section 13906(b), a person to be a 
broker for transportation of household goods subject 
to jurisdiction under subchapter I of chapter 135, if 
the Secretary finds that the person is fit, willing, 
and able to be a broker for transportation of house-
hold goods and to comply with this part and applica-
ble regulations of the Secretary. 
‘‘(2) The Secretary may register, subject to sec-
tion 13906(b), a person to be a broker for transpor-
tation of other property subject to jurisdiction under 
subchapter I of chapter 135, if the Secretary finds 
that such registration is needed for the protection of 
shippers and that the person is fit, willing, and able 
to be a broker for transportation and to comply with 
this part and applicable regulations of the Sec-
retary.’’.
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SEC. 4008. FINANCIAL RESPONSIBILITY FOR PRIVATE 
MOTOR CARRIERS. 
(a)(1) Section 31138(a) of title 49, United States 
Code, is amended to read as follows: 
‘‘(a) GENERAL REQUIREMENT.—The Secretary of 
Transportation shall prescribe regulations to require min-
imum levels of financial responsibility sufficient to satisfy 
liability amounts established by the Secretary covering 
public liability and property damage for the transportation 
of passengers by motor vehicle in the United States be-
tween a place in a State and—
‘‘(1) a place in another State; 
‘‘(2) another place in the same State through a 
place outside of that State; or 
‘‘(3) a place outside the United States.’’. 
(2) Section 31138(c) of title 49, United States Code, 
is amended by adding paragraph (4) at the end, to read 
as follows: 
‘‘(4) The Secretary may require a person, other 
than a motor carrier as defined in section 13102(12) 
of this title, transporting passengers by motor vehi-
cle to file with the Secretary the evidence of finan-
cial responsibility specified in subsection (c)(1) of 
this section in an amount not less than that required 
by this section, and the laws of the State or States 
in which the person is operating, to the extent appli-
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cable. The amount of the financial responsibility 
must be sufficient to pay, not more than the amount 
of the financial responsibility, for each final judg-
ment against the person for bodily injury to, or 
death of, an individual resulting from the negligent 
operation, maintenance, or use of motor vehicles, or 
for loss or damage to property, or both.’’. 
(b)(1) Section 31139(b)(1) of title 49, United States 
Code, is amended to read as follows: 
‘‘(b) GENERAL
REQUIREMENTS
AND
MINIMUM 
AMOUNT.—
‘‘(1) The Secretary of Transportation shall pre-
scribe regulations to require minimum levels of fi-
nancial responsibility sufficient to satisfy liability 
amounts established by the Secretary covering public 
liability, property damage, and environmental res-
toration for the transportation of property by motor 
vehicle in the United States between a place in a 
State and—
‘‘(A) a place in another State; 
‘‘(B) another place in the same State 
through a place outside of that State; or 
‘‘(C) a place outside the United States.’’. 
(2) Subsections (c) through (g) of section 31139 of 
title 49, United States Code, are redesignated as sub-
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sections (d) through (h), and new subsection (c) is in-
serted after subsection (b), to read as follows: 
‘‘(c) FILING OF EVIDENCE OF FINANCIAL RESPONSI-
BILITY.—The Secretary may require a motor private car-
rier, as defined in section 13102 of this title, to file with 
the Secretary the evidence of financial responsibility speci-
fied in subsection (b) of this section in an amount not 
less than that required by this section, and the laws of 
the State or States in which the motor private carrier is 
operating, to the extent applicable. The amount of the fi-
nancial responsibility must be sufficient to pay, not more 
than the amount of the financial responsibility, for each 
final judgment against the motor private carrier for bodily 
injury to, or death of, an individual resulting from neg-
ligent operation, maintenance, or use of motor vehicles, 
or for loss or damage to property, or both.’’. 
SEC. 4009. INCREASED PENALTIES FOR OUT-OF-SERVICE 
VIOLATIONS AND FALSE RECORDS. 
(a) Section 521(b)(2)(B) of title 49, United States 
Code, is amended to read as follows: 
‘‘(B) RECORDKEEPING
AND
REPORTING 
VIOLATIONS.—A person required to make a re-
port to the Secretary, answer a question, or 
make, prepare, or preserve a record under sec-
tion 504 of this title or under any regulation