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‘‘The Interstate System is further declared to be the 
nation’s premiere highway system, essential for the na-
tion’s economic vitality, national security, and general wel-
fare. The Secretary is directed to take appropriate actions 
to preserve and enhance the Interstate System to meet 
the needs of the 21st Century.’’. 
SEC. 1204. MILITARY VEHICLE ACCESS (OVERSIZE AND 
OVERWEIGHT 
VEHICLES; 
RELIEF 
FROM 
TOLLS). 
(a) PROCEDURES ON MILITARY VEHICLE ACCESS.—
The Secretary of Transportation is authorized to issue, in 
consultation with the Secretary of Defense and the Sec-
retary of Homeland Security, procedures and orders that 
will expedite the highway movement of all marked military 
vehicles and convoys. The procedures shall specifically ad-
dress the expedited movement of marked military vehicles, 
including the establishment of temporary vehicle size and 
weight limits in excess of Federal and local maximum lim-
its, expedited oversize/overweight permits, and exemptions 
from payment of local tolls and expedited movement 
through toll facilities. 
(b) PREEMPTION.—A law, regulation, order, ruling, 
provision, or other requirement of a State, territory, In-
dian tribe, or political subdivision thereof, which covers the 
vehicles and movements described in paragraph (a) and
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which is not consistent with the procedures or related limi-
tations established by the Secretary under that paragraph, 
is preempted. The Secretaries of Transportation, Home-
land Security, and Defense, may request the Attorney 
General to bring a civil action seeking appropriate relief 
respecting the effect of such laws, regulations, orders, rul-
ings, provisions or other requirements in any court of com-
petent jurisdiction. Nothing in this section shall be con-
strued as limiting claims or remedies otherwise available 
under law or equity. 
(c) EXEMPTION FROM ADMINISTRATIVE PROCEDURE 
ACT.—A procedure established by the Secretary under 
paragraph (a) shall be exempt from the provisions of 5 
U.S.C. 553.
SEC. 
1205. 
FREIGHT 
TRANSPORTATION 
GATEWAYS; 
FREIGHT INTERMODAL CONNECTIONS. 
(a) FREIGHT TRANSPORTATION GATEWAYS.—Chap-
ter 3 of title 23, United States Code, is amended by add-
ing after section 324 the following new section: 
‘‘§ 325. Freight transportation gateways 
‘‘(a) IN GENERAL.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight transportation gateways program to 
improve productivity, security, and safety of freight 
transportation gateways, while mitigating congestion
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and community impacts in the area of such gate-
ways. 
‘‘(2) PURPOSES.—The purposes of the freight 
transportation gateways program shall be—
‘‘(A) to facilitate and support multimodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
transportation gateways and mitigate the im-
pact of congestion on the environment in the 
area of such gateways; 
‘‘(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight transportation gateways; 
‘‘(C) to encourage adoption of new financ-
ing strategies to leverage State, local, and pri-
vate investment in freight transportation gate-
ways; and 
‘‘(D) to support military mobilization and 
readiness. 
‘‘(b) STATE RESPONSIBILITIES.—
‘‘(1) PROJECT DEVELOPMENT PROCESS.—Each 
State shall ensure that intermodal freight transpor-
tation, trade facilitation, and economic development 
needs are adequately addressed and fully integrated 
into the project development process, including
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transportation planning, through final design and 
construction 
of 
freight 
related 
transportation 
projects. 
‘‘(2) FREIGHT TRANSPORTATION COORDINATOR 
POSITION.—Each State shall designate a freight 
transportation coordinator. The coordinator shall be 
responsible for fostering public and private sector 
collaboration needed to implement complex solutions 
to freight transportation and freight transportation 
gateway problems, including coordination of metro-
politan and statewide transportation activities with 
trade and economic interests and coordination with 
other States, local Department of Defense officials, 
local Department of Homeland Security officials, 
agencies, and organizations to find regional solutions 
to freight transportation problems. The coordinator 
shall also be responsible for advancing freight pro-
fessional capacity building programs for the State. 
‘‘(c) INNOVATIVE FINANCE.—States and localities 
are encouraged to adopt innovative financing strategies for 
freight transportation gateway improvements, including 
new user fees; modifications to existing user fees, includ-
ing trade facilitation charges; revenue options that incor-
porate private sector investment; and a blending of Fed-
eral-aid and innovative finance programs. The Secretary
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shall provide technical assistance to States and localities 
with respect to such strategies. 
‘‘(d) 
INTERMODAL
FREIGHT
TRANSPORTATION 
PROJECTS.—
‘‘(1) USE OF SURFACE TRANSPORTATION PRO-
GRAM FUNDS.—A State may obligate funds appor-
tioned to it under section 104(b)(3) of this title for 
publicly owned intermodal freight transportation 
projects that provide community and highway bene-
fits by addressing economic, congestion, security, 
safety, and environmental issues associated with 
freight transportation gateways. 
‘‘(2) ELIGIBLE PROJECTS.—Projects eligible for 
funding under this section—
‘‘(A) may include publicly-owned inter-
modal freight transfer facilities, access to such 
facilities, and operational improvements for 
such facilities (including capital investment for 
Intelligent Transportation Systems), except that 
projects located within the boundaries of port 
terminals shall only include the transportation 
infrastructure modifications necessary to facili-
tate direct intermodal access into and out of 
such port; and
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‘‘(B) may involve the combining of private 
and public sector funds.’’. 
(b) ELIGIBILITY
FOR SURFACE TRANSPORTATION 
PROGRAM FUNDS.—Section 133(b) of title 23, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(15) Intermodal freight transportation projects 
in accordance with section 325(d)(2) of this title.’’. 
(c) 
FREIGHT
INTERMODAL
CONNECTIONS
TO 
NHS.—Section 103(b) of such title, is amended by adding 
at the end the following new paragraph: 
‘‘(7) FREIGHT INTERMODAL CONNECTIONS TO 
THE NHS.— 
‘‘(A) FUNDING SET-ASIDE.—Of the funds 
apportioned to a State in each fiscal year under 
section 104(b)(1) of this title, an amount deter-
mined in accordance with subparagraph (B) of 
this paragraph shall only be available to such 
State to be obligated for projects on— 
‘‘(i) National Highway System routes 
connecting to intermodal freight terminals 
identified according to criteria set forth in 
the report to Congress entitled ‘‘Pulling 
Together: The National Highway System 
and its Connections to Major Intermodal
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otherwise set aside by this paragraph on any 
project which is both eligible under paragraph 
(6) of this subsection and located in such State 
on a segment of the National Highway System 
set forth in paragraph (2) of this subsection if 
such State certifies and the Secretary concurs 
that—
‘‘(i) the routes described in subpara-
graph (A) of this paragraph are in good 
condition and provide an adequate level of 
service for military vehicle and civilian 
commercial vehicle use, and 
‘‘(ii) significant needs on such routes 
are being met or do not exist.’’. 
(d) DEFINITIONS AND DECLARATION OF POLICY.—
Section 101(a) of such title is amended by redesignating 
paragraphs (11) through (37) as paragraphs (12) through 
(38), respectively, and inserting new paragraph (11) as 
follows: 
‘‘(11) FREIGHT TRANSPORTATION GATEWAY.—
The term ‘freight transportation gateway’ means a 
nationally or regionally significant transportation 
port of entry or hub for domestic and global trade, 
military mobilization, and includes freight inter-
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modal and Strategic Highway Network connections 
that provide access to and from these gateways.’’. 
(e) FEDERAL SHARE PAYABLE.—Section 120 of such 
title is amended by adding at the end the following new 
subsection: 
‘‘(m) INCREASED FEDERAL SHARE FOR CONNEC-
TORS.—On National Highway System intermodal freight 
connections and Strategic Highway Network connectors to 
strategic military deployment ports described in section 
103(b)(7), the Federal share may be up to 90 percent of 
the total cost of the project.’’. 
(f) LENGTH LIMITATIONS.—Section 31111(e) of title 
49, United States Code, is amended by adding at the end 
‘‘In the interests of economic competitiveness, security, 
and intermodal connectivity, States shall update these 
qualifying highways within three years of enactment of the 
Safe, Accountable, Flexible, and Efficient Transportation 
Equity Act of 2003 to include Strategic Highway Network 
connectors to strategic military deployment ports and Na-
tional Highway System intermodal freight connections 
serving military and commercial truck traffic going to 
major intermodal terminals as described in section 
103(b)(7).’’.
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(g) CONFORMING AMENDMENT.—The analysis of 
chapter 3 of title 23 is amended by adding at the end 
the following:
‘‘325. Freight transportation gateways.’’.
SEC. 1206. AUTHORITY FOR ALTERNATIVE TIME—SAVING 
PROCEDURES 
FOR 
CRITICAL 
TRANSPOR-
TATION SECURITY PROJECTS. 
(a) Critical, time sensitive highway and public trans-
portation security projects are projects that are necessary 
to address an imminent threat to the security of a trans-
portation facility or to repair damage to a transportation 
facility caused by a terrorist attack against the United 
States. Such projects shall be identified by the Secretary 
in consultation with the owner-operator of the facility and 
with the Secretary of Homeland Security. 
(b) The Secretary of Transportation shall develop 
and implement expedited procedures for critical, time-sen-
sitive highway and public transportation security projects. 
These procedures shall address planning, environmental 
review, public involvement, acquisition of rights-of-way, 
and contracting, and they shall be developed with the con-
currence of other affected Federal agencies whose authori-
ties will be affected by the procedures and in consultation 
with any other Federal agencies that the Secretary deter-
mines have an interest in the procedures. For the limited 
purpose of expediting interim measures needed to address
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an imminent threat to the security of a transportation fa-
cility, the Secretary may provide that these procedures are 
exclusive of any other statute relating to planning, envi-
ronmental reviews, public involvement, acquisition of 
right-of-way, and contracting, so long as the Secretary de-
termines that such measures are necessary for the protec-
tion of the public and receives the concurrence of any 
other Federal agency responsible for administering such 
statutes. The Secretary shall issue rules establishing these 
procedures within one year of the enactment of this law. 
Subtitle C—Finance 
SEC. 1301. FEDERAL SHARE. 
Section 120 of title 23, United States Code, is 
amended—
(1) in subsection (a), by striking ‘‘shall be 90 
percent’’ and all that follows through the end of the 
subsection and inserting ‘‘shall not exceed 90 per-
cent of the total cost of the project.’’; 
(2) in subsection (b), by striking ‘‘shall be’’ and 
all that follows through the end of the subsection 
and inserting ‘‘shall not exceed 80 percent of the 
total cost of the project.’’; and 
(3) by striking subsection (d) and inserting the 
following:
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‘‘(d) INCREASED FEDERAL SHARE.—The Federal 
share payable under (a) and (b) may be increased in the 
case of any State containing nontaxable Indian lands, pub-
lic lands (both reserved and unreserved), national forests, 
and national parks and monuments. The Federal share 
for any project subject to this section shall be increased 
by a percentage of the remaining cost equal to the percent-
age that the area of all such lands in a State is of its 
total area not to exceed 95 percent of the total cost of 
the project. These rates shall be revised as needed based 
on data provided by the Federal agencies responsible for 
maintaining the data.’’. 
SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS. 
Section 104(m) of title 23, as redesignated by this 
Act, is amended to read as follows: 
‘‘(m) TRANSFER
OF
HIGHWAY
AND
TRANSIT 
FUNDS.—
‘‘(1) TRANSFER
OF
HIGHWAY
FUNDS
FOR 
TRANSIT
PROJECTS.—Funds made available for 
transit projects or transportation planning under 
this title may be transferred to and administered by 
the Secretary in accordance with chapter 53 of title 
49, except that the provisions of this title relating to 
the non-Federal share shall apply to the transferred 
funds.
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‘‘(2) TRANSFER OF TRANSIT FUNDS FOR HIGH-
WAY PROJECTS.—Funds made available for highway 
projects or transportation planning under chapter 53 
of title 49 may be transferred to and administered 
by the Secretary in accordance with this title, except 
that the provisions of such chapter relating to the 
non-Federal share shall apply to the transferred 
funds.
‘‘(3) TRANSFER OF HIGHWAY FUNDS TO OTHER 
FEDERAL AGENCIES.—Except as provided in para-
graphs (1) and (2), when an expenditure is specifi-
cally authorized in Federal-aid highway legislation, 
as a line item in an appropriation act, or when a 
State transportation department consents to a trans-
fer of funds under this title that are derived from 
the Highway Trust Fund (other than the Mass 
Transit account), such funds may be transferred to 
another Federal agency subject to subparagraphs 
(A), (B), (C), and (D) of this paragraph—
‘‘(A) if the Secretary determines, after 
consultation with the State transportation de-
partment as appropriate, that another Federal 
agency should carry out a project with funds 
made available under this title or any other act
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that are derived from Highway Trust Fund 
(other than the Mass Transit account); 
‘‘(B) the project will be administered by 
the Federal agency under its procedures, and 
such funds shall not be deemed to be an aug-
mentation of that agency’s appropriations; 
‘‘(C) such other Federal agency agrees to 
accept the transfer of funds and to administer 
those funds; and 
‘‘(D) the provisions of this title or the acts 
referred to above relating to the non-Federal 
share shall apply to the transferred funds, ex-
cept where the Secretary determines that it is 
in the best interest of the United States that 
such share be waived. 
‘‘(4) TRANSFER OF FUNDS AMONG STATES OR 
TO THE FEDERAL HIGHWAY ADMINISTRATION.—The 
Secretary may, at the request of a State, transfer 
funds apportioned or allocated to such State to an-
other State or to the Federal Highway Administra-
tion for the purpose of funding a specific project or 
projects. The funds transferred shall be used for the 
same purpose and in the same manner for which 
they were authorized. Such transfer shall have no ef-
fect on any apportionment formula used to dis-
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tribute funds to the States under sections 104, 105, 
or 144. Funds that are apportioned or allocated to 
a State under section 104(b)(3) and attributed to 
urbanized areas of a State with a population of over 
200,000 individuals under section 133(d)(2) may be 
transferred under this subsection only if the metro-
politan planning organization designated for the 
area concurs, in writing, with the transfer request. 
‘‘(5) TRANSFER OF OBLIGATION AUTHORITY.—
Obligation authority shall be transferred in the same 
manner and amount as the funds for the projects 
are transferred under this section.’’. 
SEC. 1303. STATE INFRASTRUCTURE BANK PILOT PRO-
GRAM. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) CAPITAL
PROJECT.—The term ‘‘capital 
project’’ has the meaning such term has under sec-
tion 5302 of title 49, United States Code. 
(2) OTHER ASSISTANCE.—The term ‘‘other as-
sistance’’ includes any use of funds in an infrastruc-
ture bank—
(A) to provide credit enhancements; 
(B) to serve as a capital reserve for bond 
or debt instrument financing;
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(C) to subsidize interest rates; 
(D) to ensure the issuance of letters of 
credit and credit instruments; 
(E) to finance purchase and lease agree-
ments with respect to transit projects; 
(F) to provide bond or debt financing in-
strument security; and 
(G) to provide other forms of debt financ-
ing and methods of leveraging funds that are 
approved by the Secretary and that relate to 
the project with respect to which such assist-
ance is being provided. 
(3) STATE.—The term ‘‘State’’ has the mean-
ing such term has under section 101 of title 23, 
United States Code. 
(4) CAPITALIZATION.—The term ‘‘capitaliza-
tion’’ means the process used for depositing funds as 
initial capital into a State Infrastructure Bank to es-
tablish the infrastructure bank. 
(5) COOPERATIVE AGREEMENT.—The term ‘‘co-
operative agreement’’ means the written consent be-
tween a State and the Secretary which sets forth the 
manner in which the State Infrastructure Bank will 
be administered.
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(6) LOAN.—The term ‘‘loan’’ means any form 
of direct financial assistance from the State Infra-
structure Bank, required to be repaid over a period 
of time, which is provided to a project sponsor for 
all or part of project costs. 
(7) 
GUARANTEE.—The 
term 
‘‘guarantee’’ 
means a contract or contracts entered into by the 
State Infrastructure Bank in which the State Infra-
structure Bank agrees to take responsibility for all 
or a portion of a project sponsor’s financial obliga-
tions for a project under specified conditions. 
(8) INITIAL ASSISTANCE.—The term ‘‘initial as-
sistance’’ means the first round of State Infrastruc-
ture Bank funds that must be loaned or used for 
credit enhancement for purposes limited to highway 
construction under title 23 or transit capital projects 
under title 49. 
(9) LEVERAGE.—The term ‘‘leverage’’ means a 
financial structure used to increase State Infrastruc-
ture Bank funds through debt issuance. A State In-
frastructure Bank is considered leveraged if its total 
potential liabilities exceed its equity. 
(b) PILOT PROGRAM.—
(1) COOPERATIVE
AGREEMENTS.—Subject to 
the provisions of this section, the Secretary may
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enter into cooperative agreements with up to five 
States, including States that entered into coopera-
tive agreements under section 1511 of the Transpor-
tation Equity Act for the 21st Century, as amended, 
for the establishment of State infrastructure banks 
for making loans and providing other forms of credit 
assistance to public and private entities carrying out 
or proposing to carry out projects eligible for assist-
ance under this section. 
(2) APPLICATION.—To participate in the pilot 
program, a State shall submit an application to the 
Secretary. 
(3) SELECTION CRITERIA.—In evaluating appli-
cations for participation in the pilot program, the 
Secretary shall establish selection criteria that shall 
include—
(A) the State’s ability to provide non-Fed-
eral funds to capitalize the bank;
(B) the existence of State enabling legisla-
tion that clearly allows for full State Infrastruc-
ture Bank participation; 
(C) the State’s strategy for encouraging 
non-Federal repayment sources from project 
sponsors;
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(D) the amount of Federal funds the State 
will commit to the State Infrastructure Bank as 
a percentage of its Federal-aid apportionments; 
(E) the State’s eligibility under section 
1511 of the Transportation Equity Act for the 
21st Century, as amended; and 
(F) the State’s past experience with a 
State Infrastructure Bank, including the pro-
gram established under section 1511 of the 
Transportation Equity Act for the 21st Cen-
tury, as amended, or comparable financing 
mechanisms. 
(4) TERMINATION
OF
COOPERATIVE
AGREE-
MENT.—If a State that has been selected for this 
pilot program does not fund its State Infrastructure 
Bank within 90 days after execution of the coopera-
tive agreement, the Secretary may terminate the co-
operative agreement and may select another State to 
participate in the pilot program in accordance with 
this subsection. 
(c) INTERSTATE COMPACTS.—Congress grants con-
sent to 2 or more of the States, entering into a cooperative 
agreement under subsection (b)(1) with the Secretary for 
the establishment of a multi-state infrastructure bank, to
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enter into an interstate compact establishing such bank 
in accordance with this section. 
(d) FUNDING.—
(1) HIGHWAY ACCOUNT.—Subject to subsection 
(i), the Secretary may permit a State entering into 
a cooperative agreement under this section to con-
tribute not to exceed— 
(A) 10 percent of the funds apportioned to 
the State for each of fiscal years 2004 through 
2009 
under 
each 
of 
sections 
104(b)(1), 
104(b)(3), 104(b)(4), and 144, of title 23, 
United States Code, and 
(B) 10 percent of the funds allocated to 
the State for each of such fiscal years under 
section 105 of such title into the highway ac-
count of the infrastructure bank established by 
the State. Federal funds contributed to such ac-
count under this paragraph shall constitute for 
purposes of this section a capitalization grant 
for the highway account of the infrastructure 
bank. 
(2) TRANSIT ACCOUNT.—Subject to subsection 
(i), the Secretary may permit a State entering into 
a cooperative agreement under this section, and any 
other Federal transit grant recipient, to contribute
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not to exceed 10 percent of the funds made available 
to the State or other Federal transit grant recipient 
in each of fiscal years 2004 through 2009 for capital 
projects under sections 5307, 5309, and 5311 of 
title 49, United States Code, into the transit account 
of the infrastructure bank established by the State. 
Federal funds contributed to such account under 
this paragraph shall constitute for purposes of this 
section a capitalization grant for the transit account 
of the infrastructure bank. 
(3) SPECIAL RULE FOR URBANIZED AREAS OF 
OVER 200,000.—Funds that are attributed to urban-
ized areas of States with urbanized populations of 
over 200,000 under section 133(d)(2) of title 23, as 
amended by this Act, may be used to provide assist-
ance with respect to a project only if the metropoli-
tan planning organization designated for such area 
concurs, in writing, with the provision of such assist-
ance. 
(4) DISCONTINUANCE
OF
FUNDING.—If the 
Secretary determines that a State is not imple-
menting the State Infrastructure Bank in accord-
ance with the cooperative agreement, the Secretary 
may prohibit a State from contributing additional 
Federal funds to its State Infrastructure Bank.
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(e) FORMS OF ASSISTANCE FROM INFRASTRUCTURE 
BANKS.—An infrastructure bank established under this 
section may make loans or provide other credit assistance 
to a public or private entity in an amount equal to all 
or part of the cost of carrying out a project eligible for 
assistance under this section. The amount of any loan or 
other credit assistance provided for such project may be 
subordinated to any other debt financing for the project. 
Initial assistance provided with respect to a project from 
Federal funds contributed to an infrastructure bank under 
this section may not be made in the form of a grant. 
(f) QUALIFYING PROJECTS.—Subject to paragraph 
(e), funds in an infrastructure bank established under this 
section may be used only to provide assistance with respect 
to projects eligible for assistance under title 23, United 
States Code, for capital projects (as defined in section 
5302 of title 49, United States Code), or for any other 
project related to surface transportation that the Sec-
retary determines to be appropriate. 
(g) INFRASTRUCTURE BANK REQUIREMENTS.—In 
order to establish an infrastructure bank under this sec-
tion, each State establishing the bank shall—
(1) contribute, at a minimum, into each account 
of the bank from non-Federal sources an amount 
equal to 25 percent of the amount of each capitaliza-
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tion grant made to the State and contributed to the 
bank, except that if the contribution is into the high-
way account of the bank and the State has a lower 
non-Federal share under section 120(d) of title 23, 
as amended by this Act, such percentage shall be ad-
justed by the Secretary to correspond with such 
lower non-Federal share. The non-Federal share 
must be in the form of cash; 
(2) ensure that the bank maintains on a con-
tinuing basis an investment grade rating on its debt 
or has a sufficient level of bond or debt financing in-
strument insurance to maintain the viability of the 
bank; 
(3) ensure that investment income generated by 
funds contributed to an account of the bank will 
be—
(A) credited to the account; 
(B) available for use in providing loans 
and other assistance to projects eligible for as-
sistance from the account; and 
(C) invested in United States Treasury se-
curities, bank deposits, or such other financing 
instruments as the Secretary may approve to 
earn interest to enhance the leveraging of 
projects assisted by the bank;
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(4) ensure that any loan from the bank will 
bear interest at or below market interest rates, as 
determined by the State, to make feasible the project 
that is the subject of the loan;
(5) ensure that repayment of any loan from the 
bank will commence not later than 5 years after the 
project has been completed or, in the case of a high-
way project, the facility has opened to traffic, which-
ever is later; 
(6) ensure that the term for repaying any loan 
will not exceed 30 years after the date of the first 
payment on the loan under paragraph (5); and 
(7) require the bank to make an annual report 
to the Secretary on its status, and to make such 
other reports as the Secretary may require by guide-
lines. 
(h) 
SECRETARIAL
REQUIREMENTS.—In 
admin-
istering this section, the Secretary shall—
(1) issue guidelines to ensure that all require-
ments of title 23, United States Code, or title 49, 
United States Code, that would otherwise apply to 
funds made available under such title and projects 
assisted with such funds apply to—
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(A) funds made available under such title 
and contributed to an infrastructure bank es-
tablished under this section; and 
(B) projects assisted by the bank through 
the use of such funds; except to the extent that 
the Secretary determines that any requirement 
of such title (other than sections 113 and 114 
of title 23 and section 5333 of title 49), is not 
consistent with the objectives of this section; 
and 
(2) specify procedures and guidelines for estab-
lishing, operating, and providing assistance from the 
bank. 
(i) APPLICABILITY OF FEDERAL LAW TO REPAY-
MENTS.—The requirements of title 23 and title 49, United 
States Code, shall apply to projects financed from repay-
ments to an infrastructure bank from projects assisted by 
the bank. Such repayments shall be considered to be Fed-
eral funds for the purpose of this subsection. 
(j) UNITED STATES NOT OBLIGATED.—The con-
tribution of Federal funds into an infrastructure bank es-
tablished under this section shall not be construed as a 
commitment, guarantee, or obligation on the part of the 
United States to any third party, nor shall any third party 
have any right against the United States for payment sole-
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ly by virtue of the contribution. Any security or debt-fi-
nancing instrument issued by the infrastructure bank 
shall expressly state that the security or instrument does 
not constitute a commitment, guarantee, or obligation of 
the United States. 
(k) MANAGEMENT OF FEDERAL FUNDS.—Sections 
3335 and 6503 of title 31, United States Code, shall not 
apply to funds contributed under this section. 
(l) PROGRAM ADMINISTRATION.—For each of fiscal 
years 2004 through 2009, a State may expend not to ex-
ceed 2 percent of the Federal funds contributed to an in-
frastructure bank established by the State under this sec-
tion to pay the reasonable costs of administering the bank. 
This limitation shall not apply to non-Federal funds. 
SEC. 1304. TRANSPORTATION INFRASTRUCTURE FINANCE 
AND INNOVATION ACT (TIFIA) AMENDMENTS. 
(a) DEFINITIONS.—Section 181 of title 23, United 
States Code is amended—
(1) in paragraph (3), by striking ‘‘category’’ 
and ‘‘offered into the capital markets’’; 
(2) by striking paragraph (7) and redesignating 
paragraphs (8) through (15) as paragraphs (7) 
through (14) respectively; 
(3) by amending paragraph (8)(D), as redesig-
nated, to read as follows—
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‘‘(D) a public or private freight rail facil-
ity; an intermodal freight transfer facility; ac-
cess to such facilities; and service improvements 
for such facilities including capital investment 
for Intelligent Transportation Systems; or a 
group of such projects with the common objec-
tive of improving the flow of goods, except that 
projects located within the boundaries of port 
terminals shall only include the transportation 
infrastructure modifications necessary to facili-
tate direct intermodal access into and out of 
such port. Such a project may involve the com-
bining of private and public sector funds, in-
cluding investment of public funds in private 
sector facility improvements.’’; and 
(4) in paragraph (10), as redesignated, by 
striking ‘‘bond’’ and inserting ‘‘credit’’. 
(b) DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION.— Section 182 of such title is amended—
(1) in subsection (a)—
(A) by striking paragraphs (1) and (2) and 
inserting the following: 
‘‘(1) INCLUSION
IN
TRANSPORTATION
PLANS 
AND PROGRAMS.—The project shall satisfy the appli-
cable planning and programming requirements of
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sections 134 and 135 at such time as an agreement 
to make available a Federal credit instrument is en-
tered into under this subchapter. 
‘‘(2) APPLICATION.—A State, a local govern-
ment, public authority, public-private partnership, or 
any other legal entity undertaking the project and 
authorized by the Secretary, shall submit a project 
application to the Secretary.’’; 
(B) in paragraph (3)(A)(i), by striking 
‘‘$100,000,000’’ and inserting ‘‘$50,000,000’’; 
and 
(C) in paragraph (4), by striking ‘‘Project 
financing’’ and inserting ‘‘The Federal credit 
instrument’’ and by adding at the end of the 
sentence ‘‘that also secure the project obliga-
tions’’; and 
(2) in subsection (b)(1), by striking ‘‘criteria’’ 
after ‘‘eligibility’’ and inserting ‘‘requirements’’ and 
in subsection (b)(2)(B) by inserting ‘‘, which may be 
the Federal credit instrument,’’ after ‘‘obligations’’. 
(c) SECURED LOANS.—Section 183 of such title is 
amended—
(1) in subsection (a)—
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(A) by striking ‘‘of any project selected 
under section 182.’’ at the end of paragraph 
(1); 
(B) by inserting ‘‘of any project selected 
under section 182’’ after ‘‘costs’’ in paragraphs 
(1)(A) and (1)(B); and 
(C) in paragraph (4), by striking ‘‘fund-
ing’’ and inserting ‘‘execution’’ and by inserting 
a period in place of the comma after ‘‘receiving 
an investment grade rating’’ and striking all 
that follows to the end of the paragraph; and 
(2) in subsection (b)—
(A) by inserting ‘‘the lesser of’’ after ‘‘ex-
ceed’’ and ‘‘or the amount of the senior project 
obligations’’ after ‘‘costs’’; 
(B) by inserting ‘‘that also secure the sen-
ior project obligations’’ in paragraph (3)(A)(i) 
after ‘‘sources’’; and 
(C) by striking ‘‘marketable’’ in paragraph 
(4); and
(3) in subsection (c), by striking paragraph (3) 
and redesignating paragraphs (4) and (5) as para-
graphs (3) and (4) respectively. 
(d) LINES OF CREDIT.—Section 184 of such title is 
amended—
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(1) in subsection (b)—
(A) in paragraph (3), by striking the 
comma after ‘‘interest’’ and by striking ‘‘any 
debt service reserve fund, and any other avail-
able reserve’’, and by inserting ‘‘but not includ-
ing reasonably required financing reserves’’; 
(B) in paragraph (4), by striking ‘‘market-
able’’; by striking ‘‘on which’’ after ‘‘date’’ and 
inserting ‘‘of execution of’’; and by striking ‘‘is 
obligated’’ after ‘‘credit’’ and inserting ‘‘agree-
ment’’; and 
(C) in paragraph (5)(A)(i), by inserting 
‘‘that also secure the senior project obligations’’ 
after ‘‘sources’’; and 
(2) in subsection (c)—
(A) in paragraph (2) by striking ‘‘sched-
uled’’, by inserting ‘‘be scheduled to’’ after 
‘‘shall’’, and by striking ‘‘be fully repaid, with 
interest,’’ and inserting ‘‘to conclude, with full 
repayment of principle and interest,’’; and 
(B) by striking paragraph (3). 
(e) PROGRAM ADMINISTRATION.—Section 185 of 
such title is amended to read as follows:
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‘‘§ 185. Program administration 
‘‘(a) REQUIREMENT.—The Secretary shall establish 
a uniform system to service the Federal credit instruments 
made available under this subchapter. 
‘‘(b) FEES.—The Secretary may establish fees at a 
level to cover all or a portion of the costs to the Federal 
government of servicing the Federal credit instruments. 
‘‘(c) SERVICER.—The Secretary may identify a finan-
cial entity to assist the Secretary in servicing the Federal 
credit instruments. The servicer—
‘‘(1) shall act as the agent for the Secretary; 
and 
‘‘(2) shall receive a servicing fee, subject to ap-
proval by the Secretary. 
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec-
retary may retain the services of expert firms, including 
counsel, in the field of municipal and project finance to 
assist in the underwriting and servicing of Federal credit 
instruments.’’. 
(f) FUNDING.—Section 188 of such title is amended 
to read as follows: 
‘‘§ 188. Funding 
‘‘(a) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) $130,000,000 for
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each of fiscal years 2004 through 2009 to carry out 
this subchapter. 
‘‘(2) ADMINISTRATIVE
COSTS.—From funds 
made available under paragraph (1), the Secretary 
may use, for the administration of this subchapter, 
not more than $3,000,000 for each of fiscal years 
2004 through 2009. 
‘‘(3) AVAILABILITY.—Amounts made available 
under paragraph (1) shall remain available until ex-
pended. 
‘‘(b) CONTRACT AUTHORITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, approval by the Secretary of a Fed-
eral credit instrument that uses funds made avail-
able under this subchapter shall be deemed to be ac-
ceptance by the United States of a contractual obli-
gation to fund the Federal credit investment. 
‘‘(2) 
AVAILABILITY.—Amounts 
authorized 
under this section for a fiscal year shall be available 
for obligation on October 1 of the fiscal year. 
‘‘(c) LIMITATIONS ON CREDIT AMOUNTS.—For each 
of fiscal years 2004 through 2009, principal amounts of 
Federal credit instruments made available shall be limited 
to $2,600,000,000.’’. 
(g) REPEAL.—Section 189 of such title is repealed.
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(h) CONFORMING AMENDMENTS.—The analysis of 
chapter 1 of title 23 is amended by—
(1) revising the item relating to section 185 to 
read as follows:
‘‘185. Program administration.’’;
and 
(2) striking the item relating to section 189. 
SEC. 1305. INTERNATIONAL REGISTRATION PLAN AND 
INTERNATIONAL FUEL TAX AGREEMENT FA-
CILITATION. 
The Secretary may provide assistance to any State 
that is participating in the International Registration Plan 
and International Fuel Tax Agreement, as provided in sec-
tions 31704 and 31705 of title 49, United States Code, 
and that serves as a base jurisdiction for motor carriers 
that are domiciled in Mexico, to help the State with ad-
ministration needs resulting from serving as a base juris-
diction for motor carriers from Mexico. 
SEC. 1306. COMMERCIALIZED REST AREA PILOT PROJECTS. 
(a) IN GENERAL.—The Secretary shall permit the 
States to conduct pilot projects to acquire, construct, oper-
ate, convert, and maintain rest areas along Interstate 
highways in their States in accordance with subsection (b). 
(b) COMMERCIAL OPERATIONS.—
(1) ELIGIBILITY.—Notwithstanding section 111 
of title 23 United States Code, and the project
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agreements required by section 111(a) and executed 
between the States and the Federal Highway Ad-
ministration, the Secretary shall permit the rest 
areas in the pilot projects to include commercial op-
erations that provide goods, services, and informa-
tion that benefit the traveling public and the com-
mercial motor carrier industry, and as deemed ap-
propriate by the States, including—
(A) commercial advertising and displays if 
such advertising and media displays are—
(i) exhibited solely within any facility 
constructed in the rest area; and 
(ii) not legible from the main traveled 
way; 
(B) programs to provide commercial vehi-
cle operators with special services designed to 
enhance motor carrier and highway safety; and 
(C) State promotional or tourism-oriented 
items. 
(2) PRIVATE
OPERATORS.—The States may 
permit such commercial operations to be run by a 
private operator.
(c) PARTICIPATION.—Participation in this pilot 
project is limited to those proposals submitted to the Sec-
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retary for approval during the one year period after the 
date of enactment of this Act. 
(d) PROPOSALS.—
(1) The State proposals shall at a minimum—
(A) describe the types of goods, services 
and information to be provided; 
(B) 
demonstrate 
that 
the 
proposed 
project(s) helps implement the strategies devel-
oped in the ‘‘Study of Adequacy of Parking Fa-
cilities’’ prepared pursuant to section 4027 of 
the Transportation Equity Act for the 21st 
Century; 
(C) contain a review and update of the in-
dividual State action plans for addressing com-
mercial truck parking shortages; and 
(D) prepare a plan for evaluating the re-
sults of the pilot project(s) in that State. 
(2) The Secretary must determine that com-
mercial rest area projects being advanced under this 
pilot program will meet all of the design standards 
applicable to rest areas on the Interstate system. 
(e) LIMITATION ON USE OF REVENUES.—Any reve-
nues received by a State from the commercial operations 
in a rest area under this section that are in excess of 
amounts required for the proper operation and mainte-
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nance of the rest area shall be used by the State for 
projects eligible under title 23, United States Code. 
(f) CONSIDERATIONS.—The Secretary shall consider 
the benefit to the traveling public and the impact on local 
businesses in carrying out this section. 
(g) VENDING MACHINES.—If vending machines are 
placed in a pilot project, the State shall give priority to 
vending machines operated through the State licensing 
agency designated under the Randolph-Sheppard Act. 
SEC. 1307. HIGHWAY USE TAX EVASION PROJECTS. 
(a) ELIGIBLE ACTIVITIES.—Section 143(b) of title 
23, United States Code, is amended as follows: 
(1) INTERGOVERNMENTAL ENFORCEMENT EF-
FORTS.—Paragraph (2) is amended by inserting a 
comma after ‘‘Secretary’’ and adding ‘‘except that 
for each of fiscal years 2004 through 2009, 
$2,000,000 shall be available only to carry out inter-
governmental enforcement efforts, including research 
and training’’. 
(2) CONDITIONS ON FUNDS ALLOCATED TO IN-
TERNAL
REVENUE
SERVICE.—Paragraph (3) is 
amended by inserting a comma after ‘‘subsection’’ 
and adding ‘‘except as otherwise provided in this 
section’’.
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(3) LIMITATION
ON
USE
OF
FUNDS.—Para-
graph (4) is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (F); 
(B) by striking the period at the end of 
subparagraph (G) and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(H) to support efforts between States and 
tribes to address issues related to state motor 
fuel taxes; and 
‘‘(I) to analyze and implement programs to 
reduce tax evasion associated with foreign im-
ported fuel.’’. 
(4) REPORTS.—The following new paragraph is 
added at the end: 
‘‘(9) REPORTS.—The Internal Revenue Service 
and States shall submit to the Secretary annual re-
ports that describe the projects, examinations, and 
criminal investigations funded by and carried out 
under this section. The reports must specify the an-
nual yield estimated for each project funded under 
this section.’’. 
(b) EXCISE FUEL REPORTING SYSTEM.—Section 
143(c) of such title is amended—
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(1) in paragraph (1) by striking ‘‘Not later 
than August 1, 1998,’’ and inserting ‘‘Not later 
than 90 days after enactment of the Safe, Account-
able, Flexible, and Efficient Transportation Equity 
Act of 2003,’’; by striking ‘‘development’’ and insert-
ing ‘‘completion, operation,’’; by striking ‘‘an excise 
fuel reporting system’’ and inserting ‘‘the excise 
summary terminal activity reporting system’’; and 
by striking ‘‘(in this subsection referred to as the 
‘‘system’’)’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘the system’’ each place it 
appears and inserting ‘‘the excise summary ter-
minal activity reporting system’’; 
(B) in subparagraph (A), by striking ‘‘de-
velop’’ and inserting ‘‘complete’’; 
(C) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(D) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; and 
(E) by adding at the end the following new 
subparagraph: 
‘‘(D) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for the
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completion, operation, and maintenance of the 
excise summary terminal activity reporting sys-
tem.’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make funds 
available to the Internal Revenue Service to com-
plete, operate, and maintain the excise summary ter-
minal activity reporting system in accordance with 
this subsection.’’. 
(c) REGISTRATION SYSTEM AND ELECTRONIC DATA-
BASE.—Section 143 as amended by this Act is further 
amended by adding at the end the following new sub-
sections: 
‘‘(d) PIPELINE, VESSEL, AND BARGE REGISTRATION 
SYSTEM.—
‘‘(1) IN
GENERAL.—Not later than 90 days 
after enactment of the Safe, Accountable, Flexible, 
and Efficient Transportation Equity Act of 2003, 
the Secretary shall enter into a memorandum of un-
derstanding with the Commissioner of the Internal 
Revenue Service for the purposes of the develop-
ment, operation, and maintenance of a registration
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system for pipelines, vessels, and barges, and opera-
tors of such pipelines, vessels, and barges, that make 
bulk transfers of taxable fuel. 
‘‘(2) ELEMENTS OF MEMORANDUM OF UNDER-
STANDING.—The memorandum of understanding 
shall provide that—
‘‘(A) the Internal Revenue Service shall de-
velop and maintain the registration system 
through contracts; 
‘‘(B) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for de-
velopment, operation, and maintenance of the 
registration system; 
‘‘(C) the registration system shall be under 
the control of the Internal Revenue Service; and 
‘‘(D) the registration system shall be made 
available for use by appropriate State and Fed-
eral revenue, tax, and law enforcement authori-
ties, subject to section 6103 of the Internal 
Revenue Code of 1986. 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make funds 
available to the Internal Revenue Service to com-
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plete, operate, and maintain a registration system 
for pipelines, vessels, and barges, and operators of 
such pipelines, vessels, and barges, that make bulk 
transfers of taxable fuel in accordance with this sub-
section. 
‘‘(e) HEAVY VEHICLE USE TAX PAYMENT DATA-
BASE.—
‘‘(1) IN
GENERAL.—Not later than 90 days 
after enactment of the Safe, Accountable, Flexible, 
and Efficient Transportation Equity Act of 2003, 
the Secretary shall enter into a memorandum of un-
derstanding with the Commissioner of the Internal 
Revenue Service for the purposes of the establish-
ment, operation, and maintenance of an electronic 
database of heavy vehicle highway use tax payments. 
‘‘(2) ELEMENTS OF MEMORANDUM OF UNDER-
STANDING.—The memorandum of understanding 
shall provide that—
‘‘(A) the Internal Revenue Service shall es-
tablish and maintain the electronic database 
through contracts; 
‘‘(B) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for es-
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tablishment, operation, and maintenance of the 
electronic database; 
‘‘(C) the electronic database shall be under 
the control of the Internal Revenue Service; and 
‘‘(D) the electronic database shall be made 
available for use by appropriate State and Fed-
eral revenue, tax, and law enforcement authori-
ties, subject to section 6103 of the Internal 
Revenue Code of 1986. 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make funds 
available to the Internal Revenue Service to estab-
lish, operate, and maintain an electronic database of 
heavy vehicle highway use tax payments in accord-
ance with this subsection. 
‘‘(f) REPORTS.—By March 30 and September 30 of 
each year, the Internal Revenue Service shall provide re-
ports to the Secretary on the status of the Internal Rev-
enue Service projects funded under this section related to 
the excise summary terminal activity reporting system; the 
pipeline, vessel, and barge registration system; and the 
heavy vehicle use tax electronic database.’’. 
(d) ALLOCATIONS.—Of the amounts authorized to be 
appropriated under section 1101(a)(14) of this Act for
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Highway Use Tax Evasion Projects for each of fiscal years 
2004 through 2009, $4,500,000 shall be allocated to the 
States, and for fiscal year 2004, $20,050,000 shall be allo-
cated to the Internal Revenue Service, of which 
$10,500,000 shall be dedicated to the excise summary ter-
minal activity reporting system, for each of fiscal years 
2005 and 2006, $48,000,000 shall be allocated to the In-
ternal Revenue Service, of which $4,500,000 shall be dedi-
cated to the excise summary terminal activity reporting 
system, for fiscal year 2007, $38,000,000 shall be allo-
cated to the Internal Revenue Service, of which 
$4,500,000 shall be dedicated to the excise summary ter-
minal activity reporting system, and for each of fiscal 
years 2008 and 2009, $4,500,000 shall be allocated to the 
Internal Revenue Service, which shall be used for the ex-
cise summary terminal activity reporting system. 
Subtitle D—Program Efficiencies 
and Improvements—Safety 
SEC. 1401. NATIONAL HIGHWAY SAFETY GOAL; NATIONAL 
BLUE RIBBON COMMISSION ON HIGHWAY 
SAFETY. 
(a) NATIONAL HIGHWAY SAFETY GOAL.—Section 
101 of title 23, United States Code, is amended by adding 
at the end the following new subsection:
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‘‘(f) It is hereby declared to be in the national interest 
that the number of deaths attributable to traffic accidents 
on America’s highways be significantly reduced. To 
achieve this goal, a national initiative targeted at saving 
lives through improved engineering, education, enforce-
ment, and emergency response in cooperation with new 
and existing State and local safety programs is hereby au-
thorized.’’. 
(b) NATIONAL BLUE RIBBON COMMISSION ON HIGH-
WAY SAFETY.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a National Blue Ribbon Commission on 
Highway Safety (hereinafter in this section referred 
to as ‘‘the Commission’’). 
(2) MEMBERSHIP.—
(A) COMPOSITION.—The Commission shall 
be composed of 15 members as follows—
(i) the Secretary or the Secretary’s 
delegate; 
(ii) the Administrators of the Federal 
Highway Administration; the National 
Highway Traffic Safety Administration; 
the Federal Motor Carrier Safety Adminis-
tration; and the Federal Railroad Adminis-
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tration, or the Administrators’ delegates; 
and 
(iii) 10 members appointed by the 
Secretary from among individuals who rep-
resent the interests of States and political 
subdivisions of States, the safety commu-
nity, public health, and State and local law 
enforcement agencies, and who have been 
nominated by the Committee on Environ-
ment and Public Works and the Committee 
on Commerce, Science and Transportation 
of the United States Senate and the Com-
mittee on Transportation and Infrastruc-
ture of the United States House of Rep-
resentatives. 
(B) APPOINTMENT.—The Secretary shall 
select the individuals to be appointed under this 
subsection on the basis of their knowledge, ex-
pertise, or experience related to highway safety. 
Half of the appointments shall be made from 
nominees submitted by the Committee on Envi-
ronment and Public Works and the Committee 
on Commerce, Science and Transportation of 
the Senate and the other half from the nomi-
nees submitted by the Committee on Transpor-
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tation and Infrastructure of the House of Rep-
resentatives. Each of these committees shall 
nominate 20 individuals qualified to serve on 
the Commission. 
(C) TERMS.—The term of each member of 
the Commission shall be 6 years. Any vacancy 
shall be filled in the manner the original ap-
pointment was made. The vacancy does not af-
fect the Commission’s powers. 
(3) FUNCTION.—The Commission, to carry out 
the direction of Congress, under section 101(f) of 
title 23, United States Code as amended by this Act, 
that the number of deaths attributable to traffic ac-
cidents on America’s highways be significantly re-
duced, shall—
(A) oversee a comprehensive study evalu-
ating the Nation’s highway safety needs over 
the next three decades in the areas of engineer-
ing, education, enforcement, and emergency re-
sponse and, based on such study, make specific 
recommendations to the Secretary for an 
achievable national goal for the reduction of 
highway fatalities and for the funding necessary 
to achieve such goal;
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(B) assist in developing a national con-
sensus in support of such goal; and 
(C) advise, consult with, and make rec-
ommendations to, the Secretary to assist in 
identifying specific measures for achieving the 
national highway safety goal. 
(4) SPECIFIC MATTERS TO BE ADDRESSED.—
The national highway safety goal study conducted by 
the Commission shall examine the roles of highway 
infrastructure, drivers, and vehicles in fatalities on 
all public roads; identify high risk areas and activi-
ties associated with the greatest numbers of highway 
fatalities; examine the roles of various levels of gov-
ernment agencies and non-governmental organiza-
tions in reducing highway fatalities and recommend 
ways to strengthen highway safety partnerships; and 
identify measures that will save the most lives both 
long term and short term. The study shall consider, 
among other things, the findings, conclusions, and 
recommendations of highway safety studies and re-
search conducted by the Transportation Research 
Board, including studies related to implementation 
of the American Association of State Highway and 
Transportation Officials’ Strategic Highway Safety 
Plan.
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(5) REPORTS TO CONGRESS.—
(A) INITIAL REPORT.—Not later than Sep-
tember 30, 2006, the Commission shall trans-
mit to Congress an initial report on the results 
of the national highway safety goal study, in-
cluding recommendations and such legislative 
recommendations as the President judges nec-
essary and expedient for an achievable national 
goal for the reduction of highway fatalities and 
for preliminary strategies to be implemented to 
achieve such goal. 
(B) FINAL REPORT.—Not later than Feb-
ruary 1, 2009, the Commission shall transmit 
to Congress a final report on the results of the 
national highway safety goal study, including 
recommendations and such legislative rec-
ommendations as the President judges nec-
essary and expedient for a comprehensive plan 
with specific strategies to achieve the fatality 
reduction goal recommended in the initial re-
port and for the level of funding necessary to 
implement such fatality reduction plan and 
strategies. 
(6) TERMINATION OF COMMISSION.—The Com-
mission shall terminate on the 180th day following
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the date of transmittal of the final report to Con-
gress under paragraph (5)(B) of this subsection. By 
the 180th day, all records and papers of the Com-
mission shall be delivered to the Administrator of 
the General Services Administration for deposit in 
the National Archives. 
(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated out of the 
Highway Trust Fund (other than the Mass Transit 
Account) up to $3,000,000 for fiscal year 2004, 
$1,000,000 for fiscal year 2005, $1,000,000 for fis-
cal year 2006, $1,000,000 for fiscal year 2007, 
$500,000 for fiscal year 2008, and $500,000 for fis-
cal year 2009 for the purposes of carrying out this 
subsection. 
(8) APPLICABILITY OF TITLE 23.—Funds au-
thorized by this subsection shall be available for obli-
gation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States 
Code, except that the Federal share of the cost of 
the study and the Commission under this section 
shall be 100 percent, and such funds shall remain 
available until expended.
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SEC. 1402. HIGHWAY SAFETY IMPROVEMENT PROGRAM; 
FLEXIBILITY FOR SAFETY INITIATIVES 
(a) ESTABLISHMENT OF PROGRAM.—Chapter 1 of 
title 23, United States Code, is amended by inserting the 
following new section after section 149: 
‘‘§ 150. Highway Safety Improvement Program 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and implement a highway safety improvement pro-
gram in accordance with this section, in order to signifi-
cantly reduce fatalities and serious injuries on the Na-
tion’s roadway system. 
‘‘(b) PROGRAM.—
‘‘(1) STATE
RESPONSIBILITIES.—To receive 
funds under this section, each State shall have a 
process in place that identifies and analyzes highway 
safety problems and opportunities and will produce 
a program of projects for funding under this section 
based on this analysis. Such process and program of 
projects shall be known as the Highway Safety Im-
provement Program. The statewide program shall 
identify hazardous locations, sections, and elements 
including roadside obstacles, railway-highway cross-
ing needs, and unmarked or poorly marked roads 
that may constitute a danger to motorists, bicyclists, 
pedestrians, and other highway users. States shall 
also have crash data systems and the ability to per-
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form safety problem identification and counter-
measure analysis.
‘‘(2) PROGRAM
ADMINISTRATION.—The Sec-
retary shall establish implementing guidelines for 
this program, which shall include at a minimum the 
following components: 
‘‘(A) STRATEGIC APPROACH TO HIGHWAY 
SAFETY.—Each State shall, as appropriate, 
adopt strategic and performance-based goals for 
its Highway Safety Improvement Program. 
This statewide program shall address safety 
problems and opportunities on all roadways 
within the State, focus resources on areas of 
greatest need, and be complementary to the 
programs developed in response to section 402 
of this title. 
‘‘(B) DATA
IMPROVEMENT
PROGRAM.—
Each State shall, as appropriate, advance its 
capabilities for traffic records data collection, 
analysis, and integration with other sources of 
safety data such as roadway inventories. Such 
a data improvement program shall be com-
plementary to the programs supported by sec-
tions 402 and 412 of this title; include all pub-
lic roads; and contain provisions to identify haz-
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ardous locations, sections, and elements on 
these public roads that constitute a danger to 
motorists, bicyclists, and pedestrians. 
‘‘(C) PROGRAM OF IMPROVEMENTS.—Each 
State shall determine priorities for the correc-
tion of hazardous roadway locations, sections, 
and elements, including railway-highway cross-
ing improvements, as identified through crash 
data analysis; identify opportunities for pre-
venting the development of such hazardous con-
ditions; and establish and implement a schedule 
of safety improvement projects for hazard cor-
rection and hazard prevention. 
‘‘(D) EVALUATION.—Each State shall, as 
appropriate, establish an evaluation process to 
analyze and assess results achieved by safety 
improvement projects carried out in accordance 
with procedures and criteria established by this 
section, and such information shall be used in 
setting 
priorities 
for 
safety 
improvement 
projects. 
‘‘(c) REPORTS.—Each State shall report to the Sec-
retary on progress being made to implement safety im-
provement projects under this section and the effective-
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ness of such improvements. The Secretary shall establish 
the content and schedule for such reports. 
‘‘(d) ELIGIBLE PROJECTS.—
‘‘(1) IN GENERAL.—A State may obligate funds 
apportioned to it under this section for any safety 
improvement project on any public road or publicly-
owned bicycle or pedestrian pathway or trail. 
‘‘(2) SAFETY
IMPROVEMENT
PROJECT.—For 
purposes of this section the term ’safety improve-
ment project’ means a project that corrects or im-
proves a hazardous roadway location or feature, or 
proactively addresses highway safety problems, in-
cluding: intersection improvements, pavement and 
shoulder widening, installation of rumble strips and 
other warning devices, improving skid resistance, im-
provements for pedestrian or bicyclist safety, rail-
way-highway crossing safety, traffic calming, elimi-
nation of roadside obstacles, improving highway 
signage and pavement marking, installing priority 
control systems for emergency vehicles at signalized 
intersections, installing traffic control or warning de-
vices at locations with high accident potential, safety 
conscious planning, and improving crash data collec-
tion and analysis.
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‘‘(e) FUNDING.—Sums authorized to be appropriated 
to carry out this section shall be apportioned in accordance 
with section 104(b)(5). 
‘‘(f) FEDERAL SHARE.—The Federal share payable 
on account of any project carried out under this section 
shall be 90 percent of the cost thereof. 
‘‘(g) USE OF FUNDS.—Beginning in fiscal year 2005 
and for each fiscal year thereafter, 10 percent of the funds 
available to a State to carry out the highway safety im-
provement program established in accordance with this 
section shall be obligated for projects under section 402 
of this title, unless by October 1 of the fiscal year in which 
funds become available to a State the State has enacted 
a primary safety belt law or the State demonstrates that 
the safety belt use rate in that State meets or exceeds 
90 percent. A State subject to the provisions of this sub-
section must have in place or adopt a strategic highway 
safety plan in accordance with section 151 of this title. 
Activities funded under this subsection shall be consistent 
with such a plan. 
‘‘(h) USE OF OTHER FUNDING FOR SAFETY.—Noth-
ing in this section shall be interpreted to prohibit the use 
of funds made available under other sections of this title 
for highway safety improvement projects, and States are 
to encouraged to address the full scope of their safety
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needs and opportunities by using other funds unless provi-
sions exist that prohibit such use.’’. 
(b) APPORTIONMENT
OF HIGHWAY SAFETY IM-
PROVEMENT PROGRAM FUNDS.—Section 104 of such title 
is amended—
(1) by inserting in subsection (a) ‘‘the Highway 
Safety Improvement Program under section 150,’’ 
after ‘‘section 204,’’; 
(2) by inserting in subsection (b) ‘‘the Highway 
Safety Improvement Program,’’ after ‘‘Improvement 
Program,’’; and 
(3) by adding at the end of subsection (b) the 
following new paragraph: 
‘‘(5) HIGHWAY
SAFETY
IMPROVEMENT
PRO-
GRAM.—
‘‘(A) IN
GENERAL.—For the Highway 
Safety Improvement Program, in accordance 
with the following formula: 
‘‘(i) 25 percent of the apportionments 
in the ratio that—
‘‘(I) the total lane miles of Fed-
eral-aid highways in each State; bears 
to 
‘‘(II) the total lane miles of Fed-
eral-aid highways in all States.
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‘‘(ii) 40 percent of the apportionments 
in the ratio that—
‘‘(I) the total vehicle miles trav-
eled on lanes on Federal-aid highways 
in each State; bears to 
‘‘(II) the total vehicle miles trav-
eled on lanes on Federal-aid highways 
in all States. 
‘‘(iii) 35 percent of the apportion-
ments in the ratio that—
‘‘(I) the estimated tax payments 
attributable to highway users in each 
State paid into the Highway Trust 
Fund (other than the Mass Transit 
Account) in the latest fiscal year for 
which data are available; bears to
‘‘(II) the estimated tax payments 
attributable to highway users in all 
States paid into the Highway Trust 
Fund (other than the Mass Transit 
Account) in the latest fiscal year for 
which data are available. 
‘‘(B) MINIMUM
APPORTIONMENT.—Not-
withstanding subparagraph (A), each State
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shall receive a minimum of 1/2 of 1 percent of 
the funds apportioned under this paragraph.’’. 
(c) FLEXIBILITY FOR SAFETY INITIATIVES.—Chap-
ter 1 of such title, as amended by this Act, is further 
amended—
(1) by repealing section 152; 
(2) by redesignating section 151 as section 152; 
and 
(3) by inserting the following new section 151 
after section 150: 
‘‘§ 151. Flexibility for safety initiatives 
‘‘(a) IN GENERAL.—As provided in this section, a 
State that develops and implements a strategic highway 
safety plan and comprehensive safety planning process 
shall have the flexibility to use funds available under sec-
tion 150 of this title, the Highway Safety Improvement 
Program, for title 23 safety purposes not otherwise eligible 
under such section, including funding for public aware-
ness, education, and enforcement. 
‘‘(b) STRATEGIC HIGHWAY SAFETY PLAN.—To qual-
ify for flexible safety funding as provided under this sec-
tion, the State strategic highway safety plan must—
‘‘(1) be based on a collaborative process that in-
cludes the State Department of Transportation, the 
Governor’s Representative for Highway Safety, per-
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sons responsible for administering section 130 of 
this title at the State level, and other major State 
and local safety stakeholders, including Operation 
Lifesaver; 
‘‘(2) address engineering, education, enforce-
ment, and emergency services elements of highway 
safety; 
‘‘(3) consider the results of existing State 
transportation and highway safety planning proc-
esses; and 
‘‘(4) be certified by the Secretary, in consulta-
tion with the Federal Highway Administration and 
the National Highway Traffic Safety Administra-
tion, as based on a comprehensive, collaborative 
process, and effective analyses of State crash data. 
‘‘(c) 
SAFETY
ACTIVITIES
CONSISTENT
WITH 
PLAN.—To qualify for the flexible use of funds available 
under sections 150 and 402(k) in accordance with this sec-
tion, activities must be consistent with the State strategic 
highway safety plan. 
‘‘(d) OTHER TRANSPORTATION AND HIGHWAY SAFE-
TY PLANS.—Nothing in this section shall require a State 
to revise existing State processes, plans, or programs. 
‘‘(e) FLEXIBLE FUNDING.—A State that receives 
funds under section 150 shall use such funds for projects
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eligible under such section, except that up to 50 percent 
of such funds may be used for activities eligible for assist-
ance under section 402 of this title that are consistent 
with the State’s strategic highway safety plan and not oth-
erwise eligible for assistance under section 150.’’. 
(d) ELIMINATION
OF SURFACE TRANSPORTATION 
PROGRAM SET-ASIDE.—Section 133(d) of such title is 
amended by striking paragraph (1) and by redesignating 
paragraphs (2) through (5) as paragraphs (1) through 
(4), respectively. 
(e) CONFORMING AMENDMENTS.— 
(1) The analysis for chapter 1 of such title is 
amended—
(A) by striking the item relating to section 
152; 
(B) by renumbering ‘‘151. National bridge 
inspection program.’’ as ‘‘152’’; and 
(C) by inserting after the item relating to 
section 149 the following:
‘‘150. Highway Safety Improvement Program. 
‘‘151. Flexibility for safety initiatives.’’.
(2) Section 130 of such title is amended— 
(A) by striking subsections (e) and (f) and 
redesignating subsections (g) through (j) as (e) 
through (h), respectively; and
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(B) in subsection (f), as redesignated by 
this Act, by striking ‘‘authorized to be appro-
priated to carry out this section’’ and inserting 
‘‘made available as provided under section 150 
of this title to carry out this section’’. 
(3) Section 154(c)(3) of such title is amended 
by striking ‘‘152’’ and inserting ‘‘150’’. 
(4) Section 164(b)(3) of such title is amended 
by striking ‘‘152’’ and inserting ‘‘150’’. 
(5) Section 409 of such title is amended by 
striking ‘‘152’’ and inserting ‘‘150’’. 
SEC. 1403. OPERATION LIFESAVER. 
Section 104(d)(1) of title 23, United States Code, is 
amended 
by 
striking 
‘‘$500,000’’ 
and 
inserting 
‘‘$600,000’’. 
SEC. 1404. HIGHWAY SAFETY PROGRAMS; CERTIFICATION 
OF PUBLIC ROAD MILEAGE. 
Section 402(c) of title 23, United States Code, is 
amended by striking in the fifth sentence ‘‘the Governor 
of’’.
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Subtitle E—Program Efficiencies 
and Improvements—Planning 
SEC. 1501. METROPOLITAN PLANNING. 
Section 134 of title 23, United States Code, is 
amended by striking subsections (a) through (o) and in-
serting the following: 
‘‘Metropolitan planning shall be carried out in ac-
cordance with section 5203 of title 49, United States 
Code.’’. 
SEC. 1502. STATEWIDE PLANNING. 
Section 135 of title 23, United States Code, is 
amended by striking subsections (a) through (i) and in-
serting the following: 
‘‘Statewide planning shall be carried out in accord-
ance with section 5204 of title 49, United States Code.’’. 
SEC. 1503. STATE PLANNING AND RESEARCH. 
(a) STATE PLANNING AND RESEARCH.—Chapter 5 
of title 23, United States Code, is amended by striking 
section 505.
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of such title is amended by striking the item 
related to section 505. 
(c) APPORTIONMENT.—Section 104 of title 23, 
United States Code, is amended—
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(1) by redesignating subsections (i), (j), (k), 
and (l) as subsections (k), (l), (m), and (n), respec-
tively; and 
(2) by inserting after subsection (h) the fol-
lowing: 
‘‘(i) STATE PLANNING AND RESEARCH.—
‘‘(1) IN GENERAL.—Two and 1/2 percent of the 
sums apportioned to a State for each fiscal year 
under this section (other than subsections (f) and 
(h)) and under sections 105 and 144 of this title 
shall be available for expenditure by the State, in 
consultation with the Secretary, only for the fol-
lowing purposes: 
‘‘(A) Engineering and economic surveys 
and investigations. 
‘‘(B) The planning of future highway and 
local public transportation systems, the plan-
ning of the financing of such systems, and met-
ropolitan and statewide planning under sections 
134 and 135 of this title, including freight 
planning, safety planning, transportation sys-
tems management and operations planning, 
transportation-related land use planning, and 
transportation-related growth management ac-
tivities within these planning processes and
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planning capacity building activities described 
in section 104(j) of this title. 
‘‘(C) Development and implementation of 
infrastructure management and traffic moni-
toring systems under section 303 of this title 
and for asset management activities. 
‘‘(D) Studies of the economy, safety, and 
convenience of highway and local public trans-
portation systems and the desirable regulation 
and equitable taxation of their use. 
‘‘(E) Research, development, and tech-
nology transfer activities necessary in connec-
tion with the planning, design, construction, 
management, maintenance, regulation, and tax-
ation of the use of highway, local public trans-
portation, and intermodal transportation sys-
tems. 
‘‘(F) Study, research, and training on the 
engineering standards and construction mate-
rials, including accreditation of inspection and 
testing, for highway, local public transportation, 
and intermodal transportation systems. 
‘‘(2) MINIMUM EXPENDITURES ON RESEARCH, 
DEVELOPMENT, AND
TECHNOLOGY
TRANSFER
AC-
TIVITIES.—
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), not less than 20 percent of the 
funds subject to paragraph (1) for a fiscal year 
shall be expended by the State for research, de-
velopment, and technology transfer activities 
described in paragraph (1), relating to highway, 
local public transportation, and intermodal 
transportation systems. 
‘‘(B) WAIVERS.—The Secretary may waive 
the application of subparagraph (A) with re-
spect to a State for a fiscal year if the State 
certifies to the Secretary for the fiscal year that 
the funds described in subparagraph (A) are 
not needed for research, development, and tech-
nology transfer and the Secretary accepts such 
certification. 
‘‘(C) 
NONAPPLICABILITY
OF
ASSESS-
MENT.—Funds expended under subparagraph 
(A) shall not be considered to be part of the ex-
tramural budget of the agency for the purpose 
of section 9 of the Small Business Act (15 
U.S.C. 638). 
‘‘(3) MINIMUM EXPENDITURES FOR IMPROVING 
THE QUALITY OF COLLECTION AND REPORTING OF 
STRATEGIC SURFACE TRANSPORTATION DATA.—
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), not less than 20 percent of the 
funds subject to paragraph (1) for a fiscal year 
shall be expended by the State to improve the 
collection and reporting of strategic surface 
transportation data to provide critical informa-
tion about the extent, condition, use, perform-
ance, and financing of the Nation’s highways 
(including intermodal connectors) for passenger 
and freight movement. 
‘‘(B) WAIVERS.—The Secretary may waive 
the application of subparagraph (A) with re-
spect to a State for a fiscal year if the State 
certifies to the Secretary for the fiscal year that 
the State is collecting and reporting strategic 
data consistent with quality assurance guide-
lines developed cooperatively with the States 
and the Secretary approves such certification. If 
such waiver is approved, the funds may be used 
for the activities described in paragraph (1) of 
this subsection. 
‘‘(4) FEDERAL SHARE.—The Federal share of 
the cost of a project carried out using funds subject 
to paragraph (1) shall be matched in accordance 
with section 120(b) unless the Secretary determines
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that the interests of the Federal-aid highway pro-
gram would be best served without such matching. 
‘‘(5) ADMINISTRATION OF SUMS.—Funds sub-
ject to paragraph (1) shall be combined and admin-
istered by the Secretary as a single fund and shall 
be available for obligation for the same period as 
funds apportioned under section 104(b)(1).’’. 
SEC.1504. CRITICAL REAL PROPERTY ACQUISITION. 
Section 108 of title 23, United States Code, is 
amended by adding at the end the following: 
‘‘(d) CRITICAL REAL PROPERTY ACQUISITION.—
‘‘(1) Subject to paragraph (2), funds appor-
tioned to a State under this title may be used to 
participate in the payment of costs incurred in the 
acquisition of real property that is deemed critical, 
as determined under paragraph (2), for any project 
proposed for funding under this title, prior to the 
completion of any required environmental reviews for 
property acquisition. 
‘‘(2) The Federal share payable of the costs de-
scribed in paragraph (1) shall be eligible for reim-
bursement out of funds apportioned to a State under 
this title if, prior to acquisition, the State dem-
onstrates to the Secretary, and the Secretary deter-
mines, that the property is offered for sale on the
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open market, that the State will comply fully with 
the Uniform Relocation Assistance and Real Prop-
erty Acquisition Policies Act in acquiring the prop-
erty, and that immediate acquisition of the property 
is critical because either—
‘‘(A) normal appraisal techniques show 
that the property’s value is increasing signifi-
cantly; 
‘‘(B) there is an imminent threat of devel-
opment or redevelopment of the property; or
‘‘(C) the property is necessary for the im-
plementation of the goals as stated in the 
project proposal. 
‘‘(3) An acquisition undertaken pursuant to this 
section shall be considered to be an exempt project 
under section 176 of the Clean Air Act and its im-
plementing regulations. 
‘‘(4) No project development activity may be 
undertaken on property acquired in accordance with 
paragraph (2) until any required environmental re-
views for the project have been completed. 
‘‘(5) The number of critical acquisitions associ-
ated with a project shall be limited and shall not af-
fect the consideration of project alternatives during 
the environmental review process.
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‘‘(6) Section 156(c) of this title shall not apply 
to the sale, use or lease of any property acquired in 
accordance with paragraph (2).’’. 
SEC. 1505. PLANNING CAPACITY BUILDING INITIATIVE. 
Section 104 of title 23, United States Code, is 
amended by inserting after subsection (i), as added by this 
Act, the following: 
‘‘(j) PLANNING CAPACITY BUILDING INITIATIVE.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a planning capacity building initiative to support 
enhancements in transportation planning, in order 
to—
‘‘(A) strengthen metropolitan and state-
wide transportation planning under chapter 52 
of title 49; 
‘‘(B) enhance tribal capacity to conduct 
joint transportation planning under Chapter 2 
of this title; and 
‘‘(C) participate in the metropolitan and 
statewide transportation planning programs 
under chapter 52 of title 49. 
‘‘(2) PRIORITY.—The Secretary shall give pri-
ority to planning practices and processes that sup-
port homeland security planning, performance based 
planning, safety planning, operations planning,
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freight planning, and integration of environment and 
planning. 
‘‘(3) USE
OF
FUNDS.—Funds authorized for 
this program may be used for research, program de-
velopment, information collection and dissemination, 
and technical assistance. The Secretary may use 
these funds independently or make grants to, or 
enter into contracts, cooperative agreements, and 
other transactions, with a Federal agency, State 
agency, local agency, federally recognized Indian 
tribal government or tribal consortium, authority, 
association, nonprofit or for-profit corporation, or in-
stitution of higher education, to carry out the pur-
poses of this subsection. 
‘‘(4) SET-ASIDE.—On October 1 of each fiscal 
year, the Secretary, after making the deductions au-
thorized by subsections (a) and (f) of section 104 of 
this title, shall set aside $20,000,000 of the remain-
ing funds authorized for the Surface Transportation 
Program to carry out the requirements of this sub-
section. 
‘‘(5) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out using such funds 
shall be up to 100 percent, and such funds shall re-
main available until expended.
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‘‘(6) ADMINISTRATION.—This initiative shall be 
administered by the Federal Highway Administra-
tion in cooperation with the Federal Transit Admin-
istration.’’. 
Subtitle F—Program Efficiencies 
and Improvements—Environment 
SEC. 1601. CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM. 
(a) ELIGIBLE PROJECTS.—Section 149(b) of title 23, 
United States Code, is amended—
(1) in the first paragraph, by inserting ‘‘and, 
the project or program will reduce emissions to con-
tribute to the attainment or maintenance of the Na-
tional Ambient Air Quality Standard for which the 
area is or was designated nonattainment,’’ after 
‘‘December 31, 1997,’’; 
(2) in subsection (1)(A), by striking ‘‘(other 
than clause (xvi) of such section)’’; 
(3) in paragraph (1)(A)(ii), by inserting ‘‘by 
providing new or enhanced transportation facilities 
or services to further reduce emissions’’ after 
‘‘area’’; 
(4) in paragraph (1)(B), by inserting ‘‘or’’ at 
the end after ‘‘section;’’;
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(5) in paragraph (2), by inserting ‘‘or program’’ 
after ‘‘and the project’’, and by striking ‘‘have air 
quality benefits;’’ and inserting ‘‘reduce emissions; 
or’’; 
(6) in paragraph (3), by—
‘‘(A) inserting ‘‘if’’ after ‘‘(3)’’; 
‘‘(B) striking ‘‘contribute to the attain-
ment of a national ambient air quality stand-
ard’’ and inserting ‘‘reduce emissions’’; 
‘‘(C) striking the comma after ‘‘traveled’’ 
and inserting ‘‘or’’; and 
‘‘(D) inserting ‘‘through technological im-
provements such as anti-idling equipment and 
diesel retrofits for trucks, school buses, transit 
buses and other vehicles’’ after ‘‘consumption,’’; 
(7) in paragraph (4), by inserting ‘‘if the 
project or program is’’ after ‘‘(4)’’, and by striking 
‘‘contribute to the attainment of a national ambient 
air quality standard’’ and inserting ‘‘reduce emis-
sions’’; 
(8) in paragraph (5), by striking ‘‘that are eli-
gible for assistance under this section on the day be-
fore the date of enactment of this paragraph’’ and 
inserting ‘‘that will reduce emissions’’; and
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(9) in the final unnumbered paragraph, by 
striking the second sentence. 
(b) STATES
RECEIVING
MINIMUM
APPORTION-
MENT.—Section 149(c) of such title is amended in para-
graphs (1) and (2) by inserting ‘‘OR MAINTENANCE’’ 
after ‘‘NONATTAINMENT’’ in the heading of each para-
graph. 
(c) SELECTION OF PROJECTS.—Section 149 of such 
title is amended by adding at the end the following new 
paragraph: 
‘‘(f) INTERAGENCY CONSULTATION.—The Secretary 
shall encourage States and metropolitan planning organi-
zations to consult with State and local air quality agencies 
in nonattainment and maintenance areas on the estimated 
emissions reductions from proposed congestion mitigation 
and air quality improvement programs and projects.’’.
(d) EVALUATION AND ASSESSMENT OF PROJECTS.—
Section 149 of such title is amended by adding at the end 
the following new paragraph: 
‘‘(g) 
EVALUATION
AND
ASSESSMENT
OF 
PROJECTS.—
‘‘(1) EVALUATION
AND
ASSESSMENT.—The 
Secretary, in consultation with the Administrator of 
the Environmental Protection Agency, shall evaluate 
and assess a representative sample of projects fund-
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ed under the Congestion Mitigation and Air Quality 
Improvement Program for their actual impact on 
emissions, and congestion levels and to assure effec-
tive program implementation. Using appropriate as-
sessments of CMAQ-funded projects, and results 
from other research, the Secretary shall maintain a 
cumulative database on these impacts for broad dis-
semination. 
‘‘(2) FUNDING.—Funds set aside under section 
104(o) of this title shall be available to carry out 
this subsection.’’. 
(e) FUNDING FOR EVALUATION AND ASSESSMENT OF 
PROJECTS.—Section 104 of such title is amended by add-
ing at the end the following new subsection: 
‘‘(o) CONGESTION MITIGATION AND AIR QUALITY 
IMPROVEMENT PROGRAM EVALUATION AND ASSESSMENT 
OF PROJECTS.—Before making apportionments under 
subsection (b)(2) of this section for a fiscal year, the Sec-
retary shall deduct 0.5 percent from the amount to be ap-
portioned for such fiscal year for the purpose of carrying 
out the requirements of section 149(g) of this title.’’. 
(f) APPORTIONMENTS.—Section 104(b) of such title 
23 is amended—
(1) in paragraph (2)(B), by striking ‘‘or’’ after 
‘‘ozone’’ and inserting a comma, and by inserting ‘‘,
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or fine particulate matter (PM–2.5)’’ after ‘‘carbon 
monoxide’’; 
(2) by amending paragraph (2)(B)(i) to read as 
follows: 
‘‘(i) 1.0 if at the time of the appor-
tionment, the area is a maintenance 
area;’’; 
(3) in paragraph (2)(B)(vi), by striking ‘‘or’’ 
after the semicolon; 
(4) in paragraph (2)(B)(vii), by inserting ‘‘for 
ozone’’ after ‘‘maintenance area’’, and striking ‘‘for 
ozone’’ after ‘‘section 149(b)’’ and inserting ‘‘or for 
PM–2.5’’; 
(5) by adding at the end of paragraph (2)(B) 
two new clauses to read as follows: 
‘‘(viii) 1.0 if, at the time of apportion-
ment, any county, not designated as a non-
attainment or maintenance area under the 
1-hour ozone standard, is designated as 
nonattainment under the 8-hour ozone 
standard; or 
‘‘(ix) 1.2 if, at the time of apportion-
ment, the area is not a nonattainment or 
maintenance area as described in section 
149(b) for ozone or carbon monoxide, but
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is an area designated nonattainment under 
the PM–2.5 standard.’’; 
(6) by amending paragraph (2)(C) to read as 
follows: 
‘‘(C) ADDITIONAL ADJUSTMENT FOR CAR-
BON
MONOXIDE
AREAS.—If, in addition to 
being designated as a nonattainment or mainte-
nance area for ozone as described in section 
149(b), any county within the area was also 
classified under subpart 3 of part D of title I 
of such Act (42 U.S.C. 7512 et seq.) as a non-
attainment or maintenance area described in 
section 149(b) for carbon monoxide, the weight-
ed nonattainment or maintenance area popu-
lation of the county, as determined under 
clauses (i) through (vi) of subparagraph (B), 
shall be further multiplied by a factor of 1.2.’’; 
and 
(7) by redesignating paragraphs (2)(D) and 
(2)(E) as (2)(E) and (2)(F) and inserting after 
paragraph (2)(C) a new paragraph (2)(D) to read as 
follows: 
‘‘(D) ADDITIONAL ADJUSTMENT FOR PM–
2.5 AREAS.—If, in addition to being designated 
as a nonattainment or maintenance area for
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ozone, carbon monoxide or both as described in 
section 149(b), any county within the area was 
also designated under the PM–2.5 standard as 
a nonattainment or maintenance area, the 
weighted nonattainment or maintenance area 
population of those counties shall be further 
multiplied by a factor of 1.2.’’. 
SEC. 1602. EFFICIENT ENVIRONMENTAL REVIEWS FOR 
PROJECT DECISIONMAKING. 
(a) POLICY AND PURPOSE.—
(1) POLICY.—The Enlibra principles, as ini-
tially developed by the Western Governors Associa-
tion and adopted by the National Governors Associa-
tion, represent a sound basis for interaction among 
the Federal, State, local governments, and tribes on 
environmental matters and should be followed to the 
maximum extent practicable in the development of 
highway construction and public transit improve-
ments. These principles are: 
(A) Assign responsibilities at the right 
level. 
(B) Use collaborative processes to break 
down barriers and find solutions. 
(C) Move to a performance-based system.
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(D) Separate subjective choices from objec-
tive data gathering. 
(E) Pursue economic incentives whenever 
appropriate. 
(F) Ensure environmental understanding. 
(G) Make sure environmental decisions are 
fully informed. 
(H) Use appropriate geographic bound-
aries for environmental problems. 
(2) PURPOSE.—The purpose of this section is 
to reduce delays in the delivery of highway construc-
tion and public transit projects arising from the en-
vironmental review process, while continuing to en-
sure the protection of the human and natural envi-
ronment. 
(b) COORDINATED ENVIRONMENTAL REVIEW PROC-
ESS.—
(1) DEVELOPMENT
AND
IMPLEMENTATION.—
The Secretary shall develop and implement a coordi-
nated environmental review process for highway con-
struction and public transit projects that require—
(A) the preparation of an environmental 
impact statement or environmental assessment 
under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), except that the
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Secretary may decide not to apply this section 
to the preparation of an environmental assess-
ment under such Act; or 
(B) the conduct of any other environ-
mental review or analysis, rendering of an opin-
ion, or issuance of an environmental permit, li-
cense, or approval under Federal law. 
(2) MEMORANDUM OF UNDERSTANDING.—
(A) IN GENERAL.—The coordinated envi-
ronmental review process may be specified for a 
particular project, class of projects, or program 
and shall ensure that, whenever practicable (as 
specified in this section), all environmental re-
views, analyses, opinions, and any permits, li-
censes, or approvals that must be issued or 
made by any Federal agency for the project 
concerned shall be conducted concurrently and 
completed within a cooperatively determined 
time period. Such process for a project, class 
of projects, or program may be incorporated 
into a memorandum of understanding between 
the Department of Transportation and affected 
Federal agencies (and, where appropriate, State 
and local agencies and federally recognized 
tribes).
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(B) ESTABLISHMENT OF TIME PERIODS.—
In establishing the time period referred to in 
subparagraph (A), and any time periods for re-
view within such period, the Department and all 
such agencies shall take into account their re-
spective resources and statutory commitments. 
(c) ELEMENTS OF COORDINATED ENVIRONMENTAL 
REVIEW PROCESS.—For each project, the coordinated en-
vironmental review process established under this section 
shall provide, at a minimum, for the following elements: 
(1) FEDERAL
AGENCY
IDENTIFICATION.—The 
Secretary shall, at the earliest possible time, identify 
all potential Federal agencies that— 
(A) have jurisdiction by law over or special 
expertise related to environmental-related issues 
that may be affected by the project and the 
analysis of which would be part of any environ-
mental document required by the National En-
vironmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.); or 
(B) may be required by Federal law to 
independently— 
(i) conduct an environmental-related 
review or analysis for the project;
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(ii) determine whether to issue a per-
mit, license, or approval for the project; or 
(iii) render an opinion on the environ-
mental impact of the project. 
(2) TIME LIMITATIONS AND CONCURRENT RE-
VIEW.—If requested by the project sponsor, the Sec-
retary and the head of each Federal agency identi-
fied under paragraph (1)—
(A)(i) shall jointly develop and establish 
time periods for review for— 
(I) all Federal agency comments with 
respect to any environmental documents 
required by the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) for the project; and 
(II) all other independent Federal 
agency environmental analyses, reviews, 
opinions, and decisions on any permits, li-
censes, and approvals that must be issued 
or made for the project; such that each 
such Federal agency’s review shall be un-
dertaken and completed within such estab-
lished time periods for review; or
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(ii) may enter into an agreement to estab-
lish such time periods for review with respect to 
a class of projects or programs; and 
(B) shall ensure, in establishing such time 
periods for review, that the conduct of any such 
analysis or review, rendering of such opinion, 
and the issuance of such decision is undertaken 
concurrently with all other environmental re-
views for the project, including the reviews re-
quired by the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.); except 
that such review may not be concurrent if the 
affected Federal agency can demonstrate that 
such concurrent review would result in a signifi-
cant adverse impact to the environment or sub-
stantively alter the operation of Federal law or 
would not be possible without information de-
veloped as part of the environmental review 
process. 
(3) FACTORS TO BE CONSIDERED.—Time peri-
ods for review established under this section shall be 
consistent with the time periods established by the 
Council on Environmental Quality under sections 
1501.8 and 1506.10 of title 40, Code of Federal 
Regulations.
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(4) EXTENSIONS.—The Secretary shall extend 
any time periods for review under this section if, 
upon good cause shown, the Secretary and any Fed-
eral agency concerned determine that additional time 
for analysis and review is needed. Any memorandum 
of understanding shall be modified to incorporate 
any mutually agreed-upon extensions. 
(d) CLARIFICATION REGARDING ENVIRONMENTAL 
IMPACT STATEMENTS PREPARED BY STATE AND LOCAL 
TRANSPORTATION AGENCIES.—Any project sponsor that 
is a State or local governmental entity eligible to receive 
funds under this Act, chapter I of title 23, United States 
Code; or chapter 53 of title 49, United States Code, may, 
at the discretion of the Secretary, serve as a joint lead 
agency with the Department for purposes of preparing any 
environmental document under the National Environ-
mental Policy Act of 1969, as amended (42 U.S.C. 4321, 
et seq.), and may prepare any such environmental docu-
ments required in support of any action or approval by 
the Secretary, provided that the Department furnishes 
guidance in such preparation and independently evaluates 
such document, and provided that the document is ap-
proved and adopted by the Secretary prior to the Sec-
retary taking any subsequent action or making any ap-
proval based on such document, whether or not the Sec-
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retary’s action or approval results in Federal funding. The 
Secretary shall ensure that the project sponsor complies 
with all design and mitigation commitments made jointly 
by the Secretary and the project sponsor in such environ-
mental document, or that the document is appropriately 
supplemented if project changes become necessary. Any 
such environmental document prepared in accordance with 
this subsection may be adopted or used by any Federal 
agency making any approval to the same extent that such 
Federal agency could adopt or use a document prepared 
by another Federal agency. 
(e) DISPUTE RESOLUTION.—When the Secretary de-
termines that a Federal agency which is subject to a time 
period under this section for its environmental review has 
failed to complete its review, analysis, opinion, or decision 
on issuing any permit, license, or approval within the es-
tablished time period or within any agreed-upon extension 
to such time period, the Secretary may, after notice and 
consultation with such agency, close the record on the 
matter before the Secretary. If the Secretary finds, after 
timely compliance with this section, that an environmental 
issue related to the project over which an affected Federal 
agency has jurisdiction under Federal law has not been 
resolved, the Secretary and the head of the Federal agency 
shall resolve the matter not later than 30 days after the
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date of the finding by the Secretary. The dispute resolu-
tion procedures established pursuant to this subsection 
may be initiated by the Secretary or by the Governor of 
any State in which a highway construction or public tran-
sit project is located, or by the head of any Federal agency 
subject to the time period under this subsection.
(f) PARTICIPATION OF STATE AGENCIES.—For any 
project eligible for assistance under chapter 1 of title 23, 
United States Code, a State, under State law, may require 
that all State agencies that have jurisdiction by State or 
Federal law over environmental-related issues that may be 
affected by the project, or that are required to issue any 
environmental-related reviews, analyses, opinions, or de-
terminations on issuing any permits, licenses, or approvals 
for the project, be subject to the coordinated environ-
mental review process established under this section unless 
the Secretary determines that a State agency’s participa-
tion would not be in the public interest. If a State wishes 
to participate in the review process, the State must require 
all such State agencies with jurisdiction by law to be sub-
ject to and comply with the review process to the same 
extent as a Federal agency. 
(g) ASSISTANCE TO AFFECTED STATE AND FEDERAL 
AGENCIES.—
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(1) IN GENERAL.—The Secretary may approve 
a request by a State to provide funds made available 
under chapter 1 of title 23, United States Code, or 
for a public transit project made available under 
chapter 53 of title 49, United States Code, to the 
State for the project, class of projects, or program 
subject to the coordinated environmental review 
process established under this section, to affected 
Federal agencies, including the Department of 
Transportation, to State agencies participating in 
the coordinated environmental review process, and to 
Federally recognized tribes, to provide the resources 
necessary to meet any time limits established under 
this section. The Secretary also may use funds made 
available under section 204 of title 23, United States 
Code, for the purposes specified under this sub-
section. 
(2) AMOUNTS.—Such requests under paragraph 
(1) shall be approved only— 
(A) for the additional amounts that the 
Secretary determines are necessary for the af-
fected Federal agencies to meet the time limits 
for environmental review; and 
(B) if such time limits are less than the 
customary time necessary for such review.
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(h) JUDICIAL REVIEW AND SAVINGS CLAUSE.—
(1) JUDICIAL
REVIEW.—Except as set forth 
under subsection (i), nothing in this section shall af-
fect the reviewability of any final Federal agency ac-
tion in a court of the United States. 
(2) SAVINGS CLAUSE.—Nothing in this section 
shall affect the applicability of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
or any other Federal environmental statute or affect 
the responsibility of any Federal officer to comply 
with or enforce any such statute. 
(i) LIMITATIONS ON CLAIMS.—Notwithstanding any 
other provision of law, a claim arising under Federal law 
seeking judicial review of a permit, license, or approval 
issued by a Federal agency for a highway construction or 
public transit project shall be barred unless it is filed with-
in one hundred eighty days after the permit, license, or 
approval is final pursuant to the statute under which the 
agency action is taken, unless a shorter time is specified 
in the Federal law pursuant to which judicial review is 
allowed. Nothing in this subsection shall create a right to 
judicial review or place any limit on filing a claim that 
a person has violated the terms of a permit, license, or 
approval.
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(j) REPEAL.—Section 1309 of the Transportation 
Equity Act for the 21st Century (Public Law 105–178; 
112 Stat. 232; June 9, 1998) is repealed. 
SEC. 1603. ASSUMPTION OF RESPONSIBILITY FOR CAT-
EGORICAL EXCLUSIONS. 
(a) GENERAL.—Section 138 of title 23, United 
States Code, is repealed and the following new section is 
inserted: 
‘‘§ 138. Assumption of responsibility for categorical 
exclusions 
‘‘(a) CATEGORICAL EXCLUSION DETERMINATIONS.—
Upon mutual agreement, the Secretary may assign and 
a State may assume responsibility for determining wheth-
er certain designated activities are included within classes 
of action identified in regulation by the Secretary that are 
categorically excluded from requirements for environ-
mental assessments or environmental impact statements 
pursuant to regulations promulgated by the Council on 
Environmental Quality, or other successor law or regula-
tion. Such determinations shall be made by a State pursu-
ant to criteria established by the Secretary and only for 
types of activities specifically designated by the Secretary. 
Such criteria shall include provision for public availability 
of information consistent with the Freedom of Information 
Act (5 U.S.C. 552).
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‘‘(b) OTHER APPLICABLE FEDERAL LAWS.—Upon 
mutual agreement, the Secretary may assign and the 
State may assume some or all of the Department’s respon-
sibilities for environmental review, consultation, or other 
related actions required under any Federal law applicable 
to activities that are classified by the Secretary as categor-
ical exclusions, with the exception of government-to-gov-
ernment consultation with Indian tribes, if the State also 
assumes decision-making authority under this section. The 
State shall assume this responsibility subject to the same 
procedural and substantive requirements as would be re-
quired if that responsibility was carried out by the Depart-
ment. When a State assumes such responsibility under a 
Federal law, it shall be solely responsible and solely liable 
for complying with and carrying out that law in lieu of 
the Department. 
‘‘(c) AGREEMENTS.—The Secretary and the State 
shall enter into a memorandum of understanding setting 
forth the responsibilities to be assigned under this section 
and the terms and conditions under which such assign-
ments are to be made. Such memorandums of under-
standing shall be established for periods of no more than 
three years. In the memorandum of understanding the 
State shall consent to accept the jurisdiction of the Fed-
eral courts for the compliance, discharge, and enforcement
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of any responsibility of the Secretary it may assume. The 
Secretary shall monitor the State department of transpor-
tation’s compliance with the memorandum of under-
standing as well as the effectiveness of the delegation, and 
will take into account the State’s performance in deciding 
whether and under what conditions to renew a memo-
randum of understanding. 
‘‘(d) TERMINATION.—The Secretary may terminate 
any assumption of responsibility under this section upon 
a determination that a State is not adequately carrying 
out its assigned responsibilities. 
‘‘(e) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming the Secretary’s responsibilities under 
this section, the State agency signing the agreement in 
subsection (c) is deemed to be a Federal agency to the 
extent the State is carrying out the Secretary’s respon-
sibilities under the National Environmental Policy Act, 
under this title, and under any other Federal law.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
chapter 1 of title 23 is amended by striking ‘‘Preservation 
of parklands’’ in the item relating to section 138 and in-
serting ‘‘Assumption of responsibility for categorical exclu-
sions.’’.
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SEC. 1604. SECTION 4(f) POLICY ON LANDS, WILDLIFE AND 
WATERFOWL REFUGES, AND HISTORIC SITES. 
Section 303 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ 303. Policy on lands, wildlife and waterfowl ref-
uges, and historic sites 
‘‘(a) It is the policy of the United States Government 
that special effort should be made to preserve the natural 
beauty of the countryside and public park and recreation 
lands, wildlife and waterfowl refuges, and historic sites. 
‘‘(b) The Secretary of Transportation shall cooperate 
and consult, when appropriate, with the Secretaries of the 
Interior, Housing and Urban Development, and Agri-
culture, and with the States, in developing transportation 
plans and programs that include measures to maintain or 
enhance the natural beauty of lands crossed by transpor-
tation activities or facilities. 
‘‘(c)(1) The Secretary of Transportation may approve 
a transportation program or project requiring the use of 
publicly owned land of a public park, recreation area, or 
wildlife and waterfowl refuge of national, State, or local 
significance, or land of a historic site of national, State, 
or local significance (as determined by the Federal, State, 
or local officials having jurisdiction over the park, area, 
refuge or site) only if—
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‘‘(A) there is no feasible and prudent alter-
native to using that land, and 
‘‘(B) the program or project includes all pos-
sible planning to minimize harm to the park, recre-
ation area, wildlife and waterfowl refuge, or historic 
site resulting from the use. 
‘‘(2) In making approvals under this subsection, the 
Secretary shall apply the following standards: 
‘‘(A) The Secretary may eliminate an alter-
native as infeasible if the Secretary finds that the al-
ternative cannot be implemented as a matter of 
sound engineering. 
‘‘(B) The Secretary shall consider the following 
when determining whether it would be prudent to 
avoid the use of land of a resource subject to preser-
vation under this section: 
‘‘(i) The relative significance of the land of 
the resource being protected. 
‘‘(ii) The views of the official or officials 
with jurisdiction over the land. 
‘‘(iii) The relative severity of the adverse 
effects on the protected activities, attributes, or 
features that qualify a resource for protection. 
‘‘(iv) The ability to mitigate adverse ef-
fects.
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‘‘(v) The magnitude of the adverse effects 
that would result from the selection of an alter-
native that avoids the use of the land of the re-
source. 
‘‘(C) A mitigation measure or mitigation alter-
native under paragraph (c)(1)(B) of this section is 
possible if it is feasible and prudent. In evaluating 
the feasibility and prudence of a mitigation measure 
or mitigation alternative under paragraph (c)(1)(B) 
of this section, the Secretary shall be governed by 
the standards of paragraphs (c)(2)(A) and (B) of 
this subsection. 
‘‘(d) The requirements of this section do not apply 
to—
‘‘(1) a project for a park road, parkway, or ref-
uge road under section 204 of title 23; or 
‘‘(2) a highway project on land administered by 
an agency of the Federal government, when the pur-
pose of the project is to serve or enhance the values 
for which the land would otherwise be protected 
under this section, as jointly determined by the Sec-
retary of Transportation and the head of the appro-
priate Federal land managing agency. 
‘‘(e) The requirements of this section are deemed to 
be satisfied where the treatment of an historic site (other
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than a National Historic Landmark) has been agreed 
upon in accordance with Section 106 of the National His-
toric Preservation Act (16 U.S.C. 470f). The Secretary, 
in consultation with the Advisory Council on Historic 
Preservation, shall develop administrative procedures to 
review the implementation of this subsection to ensure 
that the objectives of the National Historic Preservation 
Act are being met. 
‘‘(f)(1) The Secretary may approve a request by a 
State to provide funds made available under chapter 1 of 
title 23, United States Code, to a State historic preserva-
tion office, Tribal historic preservation office, or to the Ad-
visory Council on Historic Preservation to provide the re-
sources necessary to expedite the historic preservation re-
view and consultation process under section 303 of title 
49 and under section 470f of title 16, United States Code. 
‘‘(2) The Secretary shall encourage States to provide 
such funding to State historic preservation officers, Tribal 
historic preservation officers or the Advisory Council on 
Historic Preservation where the investment of such funds 
will accelerate completion of a project or classes of projects 
or programs by reducing delays in historic preservation 
review and consultation. 
‘‘(3) Such requests under paragraph (1) shall be ap-
proved only for the additional amounts that the Secretary
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determines are necessary for a State historic preservation 
office, Tribal historic preservation office, or the Advisory 
Council on Historic Preservation to expedite the review 
and consultation process and only where the Secretary de-
termines that such additional amounts will permit comple-
tion of the historic preservation process in less than the 
time customarily required for such process.’’. 
SEC. 1605. NATIONAL SCENIC BYWAYS PROGRAM. 
(a) IN GENERAL.— Section 162 of title 23, United 
States Code, is amended—
(1) in subsection (a)(1), by inserting a comma 
after ‘‘Byways’’ and by striking ‘‘or All-American 
Roads’’ and inserting ‘‘All-American Roads, or one 
of America’s Byways’’; 
(2) in subsection (b)(1)(A), by inserting a 
comma after ‘‘Byways’’ and by striking ‘‘or All-
American Roads,’’ and inserting ‘‘All-American 
Roads, or one of America’s Byways,’’; 
(3) in subsection (b)(2)(A), by inserting a 
comma after ‘‘Byway’’ and by striking ‘‘or All-Amer-
ican Road’’ and inserting ‘‘All-American Road, or 
one of America’s Byways’’;
(4) in subsection (b)(2)(B), by inserting a 
comma after ‘‘Byway’’ and by striking ‘‘or All-Amer-
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ican Road’’ and inserting ‘‘All-American Road, or 
one of America’s Byways’’; and 
(5) in subsection (c)(4), by striking ‘‘passing 
lane,’’. 
(b) RESEARCH, TECHNICAL
ASSISTANCE, MAR-
KETING, AND PROMOTION.—Section 162 of such title is 
further amended—
(1) by redesignating subsections (d), (e), and 
(f) as subsections (e), (f), and (g), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) RESEARCH, TECHNICAL ASSISTANCE, MAR-
KETING, AND PROMOTION.—
‘‘(1) IN GENERAL.—The Secretary may carry 
out research, technical assistance, marketing, and 
promotion with respect to State scenic byways, Na-
tional Scenic Byways, All-American Roads, or Amer-
ica’s Byways. 
‘‘(2) 
COOPERATION, 
GRANTS, 
AND
CON-
TRACTS.—The Secretary may make grants to or 
enter into contracts, cooperative agreements, and 
other transactions with any Federal agency, State 
agency, authority, association, institution, for-profit 
or nonprofit corporation, organization, foreign coun-
try, or person, including the center for national sce-
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nic byways in Duluth, Minnesota, to carry out the 
provisions of this subsection. 
‘‘(3) FUNDS.—The Secretary may use funds 
made available for the National Scenic Byways Pro-
gram to carry out projects and activities under this 
subsection. 
‘‘(4) PRIORITY.—The Secretary shall give pri-
ority to partnerships that leverage private, Federal, 
or other public funds for research, technical assist-
ance, marketing and promotion.’’; and 
(3) by adding the following at the end of sub-
section (g): ‘‘The Federal share of the cost of 
projects or activities under subsection (d) may be up 
to 100 percent.’’. 
SEC. 1606. RECREATIONAL TRAILS PROGRAM. 
(a) RECREATIONAL TRAILS PROGRAM FORMULA.—
Section 104(h)(1) of title 23, United States Code, is 
amended by striking ‘‘research and technical assistance 
under the recreational trails program and for the adminis-
tration of the National Recreational Trails Advisory Com-
mittee’’ and inserting ‘‘research, technical assistance, and 
training under the recreational trails program’’. 
(b) RECREATIONAL TRAILS PROGRAM ADMINISTRA-
TION.—Section 206 of title 23, United States Code, is 
amended—
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(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) STATE RESPONSIBILITIES.—
‘‘(1) ELIGIBILITY.—To be eligible for appor-
tionments under this section—
‘‘(A) the Governor of the State shall des-
ignate the State agency or agencies that will be 
responsible for administering apportionments 
made to the State under this section; and 
‘‘(B) the State shall establish a State rec-
reational trail committee that—
‘‘(i) has not less than 30 percent of 
its voting membership representing non-
motorized recreational trail users, 
‘‘(ii) has not less than 30 percent of 
its voting membership representing motor-
ized recreational trail users, 
‘‘(iii) must meet not less than once 
per Federal fiscal year in a publicly an-
nounced public meeting, and 
‘‘(iv) must be used to develop state-
wide trail program policy and to rate, 
rank, and recommend recreational trails 
program projects for funding.
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‘‘(2) OBLIGATION REQUIREMENT.—If a State 
does not meet the committee requirements within a 
fiscal year, it is not eligible for an apportionment in 
the following fiscal year.’’; 
(2) by striking subsection (d)(2) and inserting 
the following: 
‘‘(2) PERMISSIBLE USES.—Permissible uses of 
funds apportioned to a State for a fiscal year to 
carry out this section include—
‘‘(A) maintenance and restoration of exist-
ing recreational trails; 
‘‘(B) development and rehabilitation of 
trailside and trailhead facilities and trail link-
ages for recreational trails; 
‘‘(C) purchase and lease of recreational 
trail construction and maintenance equipment; 
‘‘(D) construction of new recreational 
trails, except that, in the case of new rec-
reational trails crossing Federal lands, con-
struction of the trails shall be—
‘‘(i) permissible under other law; 
‘‘(ii) necessary and recommended by a 
statewide comprehensive outdoor recreation 
plan that is required by the Land and 
Water Conservation Fund Act of 1965 (16
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U.S.C. 460l–4 et seq.) and that is in ef-
fect; 
‘‘(iii) approved by the administering 
agency of the State designated under sub-
section (c)(1)(A); and 
‘‘(iv) approved by each Federal agency 
having jurisdiction over the affected lands 
under such terms and conditions as the 
head of the Federal agency determines to 
be appropriate, except that the approval 
shall be contingent on compliance by the 
Federal agency with all applicable laws, in-
cluding the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), the 
Forest and Rangeland Renewable Re-
sources Planning Act of 1974 (16 U.S.C. 
1600 et seq.), and the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 
1701 et seq.); 
‘‘(E) acquisition of easements and fee sim-
ple title to property for recreational trails or 
recreational trail corridors; 
‘‘(F) assessment of trail conditions for ac-
cessibility and maintenance;
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‘‘(G) use of trail crews, youth conservation 
or service corps, or other appropriate means to 
carry out activities under this section;
‘‘(H) operation of educational programs to 
promote safety and environmental protection as 
those objectives relate to the use of recreational 
trails, supporting non-law enforcement trail 
safety and trail use monitoring patrol pro-
grams, and providing trail-related training, but 
in an amount not to exceed 5 percent of the ap-
portionment made to the State for the fiscal 
year; and 
‘‘(I) payment of costs to the State incurred 
in administering the program, but in an amount 
not to exceed 7 percent of the apportionment 
made to the State for the fiscal year to carry 
out this section.’’; 
(3) by striking subsection (d)(3)(C) and insert-
ing the following: 
‘‘(C) USE OF YOUTH CONSERVATION OR 
SERVICE CORPS.—A State shall make available 
not less than 10 percent of its apportionments 
for grants, cooperative agreements, or contracts 
with qualified youth conservation or service
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corps to perform recreational trails program ac-
tivities.’’; 
(4) 
in 
subsection 
(d)(3)(D), 
by 
striking 
‘‘(2)(F)’’ and inserting ‘‘(2)(I)’’; 
(5) by amending subsection (f)—
(A) in paragraph (1)—
(i) by inserting ‘‘and the Federal 
share of the administrative costs of a 
State’’ after ‘‘project’’; and 
(ii) by striking ‘‘not exceed 80 per-
cent’’ and inserting in its place ‘‘be deter-
mined in accordance with section 120(b)’’; 
(B) in paragraph (2)(A), by striking ‘‘80 
percent of’’ and inserting ‘‘the amount deter-
mined in accordance with section 120(b) for’’; 
(C) in paragraph (2)(B), by inserting 
‘‘sponsoring the project’’ after ‘‘Federal agen-
cy’’; 
(D) by striking paragraph (5); 
(E) by redesignating paragraph (4) as 
paragraph (5), and by striking ‘‘80 percent’’ 
and inserting in its place ‘‘the Federal share as 
determined in accordance with section 120(b)’’; 
and 
(F) by inserting after paragraph (3)—
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‘‘(4) USE OF RECREATIONAL TRAILS PROGRAM 
FUNDS
TO
MATCH
OTHER
FEDERAL
PROGRAM 
FUNDS.—Notwithstanding any other provision of 
law, funds made available under this section may be 
used toward the non-Federal matching share for 
other Federal program funds that are—
‘‘(A) expended in accordance with the re-
quirements of the Federal program relating to 
activities funded and populations served; and 
‘‘(B) expended on a project that is eligible 
for assistance under this section.’’; 
(6) by inserting after subsection (h)(1)(B) the 
following: 
‘‘(C) PLANNING AND ENVIRONMENTAL AS-
SESSMENT COSTS INCURRED PRIOR TO PROJECT 
APPROVAL.—A project funded under sub-
sections (d)(2)(A) through (H) may allow pre-
approval planning and environmental compli-
ance costs to be credited toward the non-Fed-
eral share in accordance with subsection (f), 
limited to costs incurred less than 18 months 
prior to project approval.’’; and 
(7) by striking paragraph (h)(2) and inserting 
the following:
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‘‘(2) WAIVER OF HIGHWAY PROGRAM REQUIRE-
MENTS.—A project funded under this section is in-
tended to enhance recreational opportunity and is 
not considered a highway project. Projects funded 
under this section are not subject to sections 112, 
113, 114, 116, 134, 135, 217, or 301 of this title; 
or section 303 of title 49.’’. 
SEC. 1607. EXEMPTION OF THE INTERSTATE SYSTEM. 
Subsection 103(c) of title 23, United States Code, is 
amended by inserting the following after paragraph (4): 
‘‘(5) EXEMPTION
OF
THE
INTERSTATE
SYS-
TEM.—The Interstate Highway System, or any por-
tion thereof, as designated pursuant to subsection 
103(c) of this title, shall not be considered an his-
toric site of national, State or local significance for 
purposes of 49 U.S.C. 303, 16 U.S.C. 470f, or 16. 
U.S.C. 470h–2 by virtue of being listed as a re-
source on, or eligible for listing in, the National Reg-
ister of Historic Places. At the discretion of the Sec-
retary, with the advice of the Department of the In-
terior, individual elements of the Interstate Highway 
System may receive the protection of section 106 or 
section 110 of the National Historic Preservation 
Act (16 U.S.C. 470f and 470h–2).’’.
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SEC. 1608. MODIFICATION TO NHS/STP FOR INVASIVE SPE-
CIES, WETLANDS, BROWNFIELDS, AND ENVI-
RONMENTAL RESTORATION. 
(a) MODIFICATIONS TO THE NHS FOR INVASIVE 
SPECIES, WETLANDS, BROWNFIELDS, AND ENVIRON-
MENTAL RESTORATION.— 
(1) TECHNICAL
CORRECTIONS.—Section 103 
(b)(6) of title 23, United States Code, is amended 
in subparagraph (M)—
(A) by striking ‘‘1990’’ and inserting 
‘‘2000’’; and 
(B) by striking ‘‘101–640’’ and inserting 
‘‘106–541’’. 
(2) 
STATE
RESPONSIBILITY.—Section 
103 
(b)(6) is further amended in subparagraph (M) by 
inserting ‘‘as determined by the State’’ after ‘‘to the 
maximum extent practicable’’. 
(3) ELIGIBLE
PROJECTS
FOR
NHS.—Section 
103 (b)(6) is further amended by adding at the end 
the following new subparagraphs: 
‘‘(Q) Environmental restoration and pollu-
tion abatement to minimize or mitigate impacts 
of any transportation project funded under this 
title (including the retrofit or construction of 
storm water treatment systems to meet State 
and Federal National Pollutant Discharge
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Elimination System requirements under Section 
402 of the Clean Water Act) to address water 
pollution or environmental degradation caused 
or contributed to by transportation facilities. 
When transportation facilities are undergoing 
reconstruction, rehabilitation, resurfacing, or 
restoration, the expenditure of funds under this 
section for any such environmental restoration 
or pollution abatement project shall not exceed 
20 percent of the total cost of the reconstruc-
tion, rehabilitation, resurfacing, or restoration 
project. 
‘‘(R) In accordance with all applicable 
Federal law (including applicable Federal regu-
lations), participation in the control of invasive 
plant species and the establishment of native 
species related to projects funded under this 
title, which may include participation in state-
wide inventories of both invasive and desirable 
plant species and regional native plant habitat 
conservation and mitigation, and restoration 
plans. Contributions to the measures described 
in the preceding sentence may take place con-
current with or in advance of project construc-
tion; except that contributions in advance of
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project construction may occur only if the ef-
forts are consistent with all applicable require-
ments of Federal law (including applicable Fed-
eral regulations) and State transportation plan-
ning processes. 
‘‘(S) Remediation associated with the con-
struction of a project funded under this title on 
a brownfield site, as defined in 42 U.S.C. 
9601.’’. 
(b) MODIFICATIONS TO THE SURFACE TRANSPOR-
TATION PROGRAM FOR INVASIVE SPECIES, WETLANDS, 
BROWNFIELDS, AND ENVIRONMENTAL RESTORATION.—
(1) TECHNICAL
CORRECTIONS.—Section 133 
(b)(11) of title 23, is amended—
(A) by striking ‘‘1990’’ and inserting 
‘‘2000’’; and 
(B) by striking ‘‘101–640’’ and inserting 
‘‘106–541’’; 
(2) 
STATE
RESPONSIBILITY.—Section 
133 
(b)(11) is further amended by inserting ‘‘determined 
by the State’’ after ‘‘to the maximum extent prac-
ticable’’. 
(3) ELIGIBLE PROJECTS FOR SURFACE TRANS-
PORTATION PROGRAM.—
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(A) ENVIRONMENTAL
RESTORATION
AND 
POLLUTION ABATEMENT.—Section 133 of title 
23, United States Code, is amended by striking 
(b)(14) and inserting the following: 
‘‘(14) Environmental restoration and pollution 
abatement to minimize or mitigate impacts of any 
transportation project funded under this title (in-
cluding the retrofit or construction of storm water 
treatment systems to meet State and Federal Na-
tional Pollutant Discharge Elimination System re-
quirements under Section 402 of the Clean Water 
Act) to address water pollution or environmental 
degradation caused or contributed to by transpor-
tation facilities. When transportation facilities are 
undergoing reconstruction, rehabilitation, resur-
facing, or restoration, the expenditure of funds 
under this section for any such environmental res-
toration or pollution abatement project shall not ex-
ceed 20 percent of the total cost of the reconstruc-
tion, rehabilitation, resurfacing, or restoration 
project.’’. 
(B) INVASIVE
SPECIES
CONTROL
AND 
BROWNFIELDS
REMEDIATION
EFFORTS.—Sec-
tion 133(b) of such title, as amended by this
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Act, is further amended by adding at the end 
the following new paragraphs: 
‘‘(16) In accordance with all applicable Federal 
law (including regulations), participation in the con-
trol of invasive plant species and the establishment 
of native species related to projects funded under 
this title, which may include participation in state-
wide inventories of both invasive and desirable plant 
species and regional native plant habitat conserva-
tion and mitigation, and restoration plans. Contribu-
tions to the measures described in the preceding sen-
tence may take place concurrent with or in advance 
of project construction; except that contributions in 
advance of project construction may occur only if the 
efforts are consistent with all applicable require-
ments of Federal law (including regulations) and 
State transportation planning processes. 
‘‘(17) Remediation associated with the con-
struction of a project funded under this title on a 
brownfield site, as defined in 42 U.S.C. 9601.’’. 
SEC. 1609. STANDARDS. 
(a) IN GENERAL.—Section 109(a) of title 23 of the 
United States Code is amended by—
(1) striking ‘‘and’’ at the end of paragraph (1);
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achieve the criteria of subparagraphs (A) through 
(E).’’. 
SEC. 1610. USE OF HOV LANES. 
Section 102 of title 23, United States Code, is 
amended by striking subsection (a) and inserting the fol-
lowing: 
‘‘(a) HIGH OCCUPANCY VEHICLE (HOV) PASSENGER 
REQUIREMENTS.—
‘‘(1) IN GENERAL.—A State transportation de-
partment or other responsible local agencies shall es-
tablish the occupancy requirements of vehicles oper-
ating in HOV facilities; except that no fewer than 2 
occupants per vehicle may be required, unless other-
wise provided in paragraph (2). 
‘‘(2) EXCEPTIONS
TO
HOV
OCCUPANCY
RE-
QUIREMENTS.—
‘‘(A) MOTORCYCLES.—Motorcycles shall 
not be considered single occupant vehicles and 
shall be allowed to use HOV facilities, except 
that upon certification by the responsible agen-
cy to the Secretary, the agency may restrict 
such use by motorcycles if such use would cre-
ate a safety hazard. 
‘‘(B) LOW
EMISSION
AND
ENERGY-EFFI-
CIENT VEHICLES.—
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‘‘(i) Responsible agencies shall have 
the option of allowing qualifying low emis-
sion and energy-efficient vehicles to use 
HOV facilities if they do not satisfy the es-
tablished occupancy requirements.
‘‘(ii) Responsible agencies that allow 
qualifying low emission and energy-effi-
cient vehicles to use HOV facilities shall—
‘‘(I) establish a program that ad-
dresses how such qualifying vehicles 
are selected and certified; 
‘‘(II) establish requirements for 
labeling qualifying vehicles and proce-
dures for enforcing such vehicles; 
‘‘(III) 
continuously 
monitor, 
evaluate, and report on performance; 
and 
‘‘(IV) establish the policies and 
procedures that will limit or restrict 
the use of such vehicles as necessary, 
to ensure that the performance of in-
dividual facilities or the entire system 
does not become seriously degraded. 
‘‘(iii) As used in this subparagraph, 
the term ‘low emission and energy-efficient
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vehicles’ means vehicles that have been cer-
tified—
‘‘(I) by the Administrator of the 
Environmental Protection Agency to 
have a 45-mile-per-gallon or greater 
fuel economy highway rating; or are 
defined as an alternative fuel vehicle 
under section 301(2) of the Energy 
Policy Act of 1992 (42 U.S.C. 
13211(2)); and 
‘‘(II) as meeting Tier II emission 
level established in regulations pre-
scribed by the Administrator of the 
Environmental 
Protection 
Agency 
under section 202(i) of the Clean Air 
Act (42 U.S.C. 7521(i)) for that make 
and model year vehicle. 
‘‘(C) 
BICYCLES.—Responsible 
agencies 
shall have the option of allowing bicycles on 
surface street HOV facilities when there is in-
sufficient space within the roadway or public 
right-of-way to establish and designate a bicycle 
lane. 
‘‘(D) TOLLING OF VEHICLES.—Responsible 
agencies may permit vehicles, in addition to
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those vehicles described in paragraphs (A), (B), 
and (E) that do not satisfy the established oc-
cupancy requirements, to use an HOV facility 
only if they charge such vehicles a toll. The au-
thority of an agency to impose a toll shall be 
subject to section 129 of this title. Any agency 
electing to toll such vehicles shall also—
‘‘(i) establish a program that address-
es how motorists can enroll and partici-
pate; 
‘‘(ii) develop, manage, and maintain a 
system that will automatically collect the 
tolls that vehicles must pay; 
‘‘(iii) continuously monitor, evaluate, 
and report on performance; 
‘‘(iv) establish the policies and proce-
dures for varying the toll that is charged 
to manage the demand to use the subject 
facilities and enforcing violations; and 
‘‘(v) establish procedures that will 
limit or restrict the use of such vehicles as 
necessary, to ensure that the performance 
of individual facilities or the entire system 
does not become seriously degraded.
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‘‘(E) DESIGNATED
PUBLIC
TRANSPOR-
TATION VEHICLES.—
‘‘(i) In this subparagraph, the term 
‘designated public transportation vehicles’ 
means vehicles that provide designated 
public transportation, as defined under 
section 12141 of title 42, and that are 
owned or operated by a public entity or 
that are operating under contract to a pub-
lic entity. 
‘‘(ii) Responsible agencies may permit 
designated public transportation vehicles to 
use HOV facilities if they do not satisfy 
the established occupancy requirements. 
‘‘(iii) Any agency that permits des-
ignated public transportation vehicles to 
use HOV facilities if they do not satisfy 
the established occupancy requirements 
shall—
‘‘(I) establish requirements for 
clearly and identifiably labeling vehi-
cles operating under contract to the 
public entity with the name of the 
public entity on all sides of the vehi-
cle;
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‘‘(II) establish the policies and 
procedures to ensure that vehicles op-
erating under contract to the public 
entity are in compliance with the la-
beling requirement under subclause 
(I) of this clause; 
‘‘(III) 
continuously 
monitor, 
evaluate, and report on performance; 
and 
‘‘(IV) establish the policies and 
procedures that will limit or restrict 
the use of such vehicles as necessary, 
to ensure that the performance of in-
dividual facilities or the entire system 
does not become seriously degraded. 
‘‘(3) HOV FACILITY MANAGEMENT, OPERATION, 
AND MONITORING.—Agencies that permit any of the 
exceptions specified in paragraph (a)(2) shall be re-
sponsible for the following: 
‘‘(A) PERFORMANCE
MONITORING, EVAL-
UATION, AND
REPORTING.—Responsible agen-
cies shall be required to establish, manage, and 
support a performance monitoring, evaluation, 
and reporting program if they permit any of the 
exceptions specified in paragraph (a)(2). This
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program shall continuously monitor, assess, and 
report on the impacts that any of these specific 
types of allowed vehicles may have on the oper-
ation of individual HOV facilities and the entire 
HOV system. 
‘‘(B) OPERATION
OF
HOV
FACILITY
OR 
SYSTEM.—Responsible agencies shall limit or 
discontinue permitting any of the exceptions 
specified in paragraph (a)(2), if the presence of 
any of these specific types of allowed vehicles 
seriously degrades the operation of individual 
HOV facilities or the entire HOV system. For 
purposes of this section, ‘seriously degraded’ 
means that an HOV facility located on a free-
way, or similar type of roadway, fails to main-
tain a minimum average operating speed of at 
least 45 miles per hour 90 percent of the time 
over a consecutive six-month period during 
weekday peak travel periods. For HOV facilities 
on other types of roadways, the minimum aver-
age operating speed, performance threshold, 
and associated time period shall be established 
based on the conditions unique to each roadway 
and agreed to by the responsible agencies.’’.
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SEC. 1611. BICYCLE TRANSPORTATION AND PEDESTRIAN 
WALKWAYS. 
(a) IN GENERAL.—Section 217 of title 23, United 
States Code, is amended— 
(1) in subsection (a), by inserting ‘‘pedestrian 
and’’ after ‘‘safe’’; 
(2) in subsection (e), by striking ‘‘bicycles’’ 
each time it appears and inserting ‘‘pedestrians or 
bicyclists’’ in each instance; 
(3) by striking subsection (f) and inserting the 
following: 
‘‘(f) FEDERAL SHARE.—The Federal share of the 
construction of bicycle transportation facilities and pedes-
trian walkways and for carrying out nonconstruction 
projects related to safe pedestrian and bicycle use shall 
be determined in accordance with section 120(b).’’; 
(4) in subsection (j), by inserting after para-
graph (4) the following: 
‘‘(5) SHARED
USE
PATH.—The term 
‘‘shared use path’’ means a multi-use trail or 
other path, physically separated from motorized 
vehicular traffic by an open space or barrier, ei-
ther within a highway right-of-way or within an 
independent right-of-way, and usable for trans-
portation purposes. Shared use paths may be
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used by pedestrians, bicyclists, skaters, eques-
trians, and other nonmotorized users.’’; and 
(5) by adding after subsection (j) the following: 
‘‘(k) USER FEES.—At the option of each State, a 
shared use path funded under this section is not subject 
to the provisions of 23 U.S.C. 301, provided that the 
shared use path is not within a highway right-of-way, and 
the income received from user fees is used for ongoing 
maintenance and operation of shared use paths within the 
State. 
‘‘(l) BICYCLE AND PEDESTRIAN SAFETY GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall make 
grants to a national, not-for-profit organization en-
gaged in promoting bicycle and pedestrian safety 
to—
‘‘(A) operate a national bicycle and pedes-
trian clearinghouse; 
‘‘(B) develop information and educational 
programs; and 
‘‘(C) disseminate techniques and strategies 
for improving bicycle and pedestrian safety. 
‘‘(2) FUNDING.—Funds provided under section 
104(p) of this title shall be available to carry out the 
provisions of this section.
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‘‘(3) APPLICABILITY OF TITLE 23.—Funds au-
thorized by this subsection shall be available for obli-
gation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States 
Code, except that the funds shall remain available 
until expended.’’. 
(b) SET-ASIDE.—Section 104 of title 23, United 
States Code, is amended by adding, after subsection (o), 
as added by this Act, the following: 
‘‘(p) BICYCLE AND PEDESTRIAN SAFETY GRANTS.—
On October 1 of each fiscal year for fiscal years 2004 
through 2009, the Secretary, after making the deductions 
authorized by subsections (a) and (f), shall set-aside 
$500,000 of the remaining funds authorized to be appor-
tioned under subsection (b)(3) for carrying out the Bicycle 
and Pedestrian Safety Grants under section 217 of this 
title.’’. 
SEC. 1612. TRANSPORTATION, ENERGY, AND ENVIRON-
MENT. 
(a) IN GENERAL.—As part of the National Climate 
Change Technology Initiative and the Climate Change Re-
search Initiative, the Secretary shall establish and carry 
out a multimodal energy and climate change program to 
study the relationship of transportation, energy, and cli-
mate change.
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(b) CONTENTS.—The program to be carried out 
under this section shall include, but not be limited to, re-
search designed to—
(1) identify, develop and evaluate strategies to 
improve energy efficiency and reduce greenhouse gas 
emissions from transportation sources; and 
(2) identify and evaluate the potential effects of 
climate changes on the nation’s transportation sys-
tems, and strategies to address these effects. 
(c) PROJECT SELECTION.—Activities to be under-
taken in this program will be determined by an internal 
steering committee established by the Secretary of Trans-
portation. This intermodal committee shall include rep-
resentatives from the Office of the Secretary and oper-
ating administrations within the Department of Transpor-
tation as designated by the Secretary. 
(d) GRANTS, COOPERATIVE AGREEMENTS AND CON-
TRACTS.—The Secretary may carry out this program inde-
pendently or by making grants to, or entering into con-
tracts, cooperative agreements, and other transactions, 
with a Federal agency, State agency, local agency, author-
ity, association, nonprofit or for-profit corporation, or in-
stitution of higher education. 
(e) FUNDING.—
(1) HIGHWAY ACCOUNT.—
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(A) FUNDING.—There is authorized to be 
appropriated from the Highway Trust Fund 
(other than the Mass Transit Account) to carry 
out this section $3,600,000 for fiscal year 
2004, 
$2,200,000 
for 
fiscal 
year 
2005, 
$2,200,000 for fiscal year 2006, $2,200,000 for 
fiscal year 2007, $2,700,000 for fiscal year 
2008, and $2,700,000 for fiscal year 2009. 
(B) CONTRACT
AUTHORITY.—Funds au-
thorized from the Highway Trust Fund (other 
than the Mass Transit Account) to carry out 
this Section shall be available for obligation in 
the same manner as if the funds were appor-
tioned under Chapter 1 of Title 23, United 
States Code, except that the Federal share of 
the cost of a project or activity carried out 
using such funds shall not exceed 100 percent 
and such funds shall remain available until ex-
pended. 
(2) MASS TRANSIT ACCOUNT.—
(A) FUNDING.—There is authorized to be 
appropriated from the Mass Transit Account of 
the Highway Trust Fund to carry out this sec-
tion $400,000 for fiscal year 2004, $300,000 
for fiscal year 2005, $300,000 for fiscal year
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2006, $300,000 for fiscal year 2007, $300,000 
for fiscal year 2008, and $300,000 for fiscal 
year 2009. 
(B) CONTRACT AUTHORITY.—A grant or 
contract that is financed with amounts paid 
under this subparagraph from the Mass Transit 
Account is a contractual obligation of the 
United States Government to pay the Govern-
ment’s share of the cost of the project. 
(3) AIRPORT
AND
AIRWAY
TRUST
FUND.—
There is authorized to be appropriated from the Air-
port and Airway Trust Fund to carry out this sec-
tion $500,000 for fiscal year 2005, $500,000 for fis-
cal year 2006, and $500,000 for fiscal year 2007.
SEC. 1613. IDLING REDUCTION FACILITIES IN INTERSTATE 
RIGHTS-OF-WAY. 
Section 111 of title 23 of the United States Code is 
hereby amended by adding at the end the following: 
‘‘(d) IDLING REDUCTION FACILITIES IN INTERSTATE 
RIGHTS-OF-WAY.—Notwithstanding the prohibition on 
commercial establishments set forth in subsection (a), any 
State may permit electrification or other idling reduction 
facilities and equipment, for use by motor vehicles used 
for commercial purposes, to be placed in rest and recre-
ation areas, and in safety rest areas, constructed or lo-
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cated on rights-of-way of the Interstate System in such 
State, and may charge, or permit charges for the use of 
such facilities. The exclusive purpose of such facilities or 
technologies shall be to enable operators of such vehicles 
to turn off their engines while parked and still have heat-
ing, air conditioning, electricity, and communication serv-
ices in the vehicle.’’. 
SEC. 1614. APPROPRIATION FOR TRANSPORTATION PUR-
POSES OF LANDS OR INTEREST IN LANDS 
OWNED BY THE UNITED STATES. 
(a) IN GENERAL.—Section 317 of title 23, United 
States Code, is amended to read as follows: 
‘‘§ 317. Appropriation for transportation purposes of 
lands or interest in lands owned by the 
United States 
‘‘(a) IN GENERAL.—If the Secretary determines that 
any part of the lands or interests in land owned by the 
United States are reasonably necessary for any project ad-
ministered under this title or as a source for materials 
for such a project, the Secretary is authorized to file with 
the Secretary of the Department supervising the adminis-
tration of such lands or interests in lands a description 
and a map showing the portion of such lands or interests 
in lands which it is necessary to appropriate. The Sec-
retary of such Department shall have a period of up to
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four months to review the proposed appropriation and to 
designate reasonable mitigation measures necessary to 
protect the adjacent Federal lands from adverse environ-
mental impacts, or to certify that the proposed appropria-
tion is contrary to the purposes for which such lands or 
materials have been reserved. If no such certification is 
received, the Secretary may appropriate and transfer such 
lands or interests in lands to the State transportation de-
partment, or its nominee, subject to such reasonable miti-
gation measures designated above. If at any time the need 
for such lands or materials for transportation purposes 
shall no longer exist, notice of the fact shall be given by 
the State transportation department to the Secretary and 
the Secretary of the Department from which they had 
been appropriated. Such lands or materials may, at the 
discretion of the Secretary of the Department from which 
they had been appropriated or its designee, revert to the 
United States, under the control of such Secretary, or its 
designee. Unless otherwise instructed by the Secretary, 
prior to any such reversion the State transportation de-
partment shall restore the land to its former condition. 
‘‘(b) PRIOR RESTRICTIONS OR ENCUMBRANCES.—
Notwithstanding any other provision of law, the acquisi-
tion and use of land under this section may proceed irre-
spective of any prior deed restrictions or other encum-
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brances that were imposed as a condition on the receipt 
of Federal funds.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 3 of such title is revised by amending the item 
relating to section 317 to read as follows:
‘‘317. Appropriation for transportation purposes of lands or interest in lands 
owned by the United States.’’.
SEC. 1615. TOLL PROGRAMS. 
(a) INTERSTATE SYSTEM RECONSTRUCTION AND RE-
HABILITATION PILOT PROGRAM.—Sec. 1216(b) of the 
Transportation Equity Act for the 21st Century is amend-
ed—
(1) in paragraph (1), by striking ‘‘that could 
not otherwise be adequately maintained or function-
ally improved without the collection of tolls’’; 
(2) in paragraph (3), by striking subparagraph 
(C) and inserting the following: 
‘‘(C) An analysis demonstrating that fi-
nancing the reconstruction or rehabilitation of 
the facility with the collection of tolls under this 
pilot program is the most efficient, economical, 
or expeditious way to advance the project.’’; and 
(3) in paragraph (4), 
(A) by striking subparagraph (A) and in-
serting the following:
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‘‘(A) the State’s analysis showing that fi-
nancing the reconstruction or rehabilitation of 
this facility with the collection of tolls under 
this program is the most efficient, economical, 
or expeditious way to advance the project is 
reasonable;’’; 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) the facility needs reconstruction or 
rehabilitation;’’; 
(C) by striking subparagraph (C); and 
(D) by redesignating subparagraphs (D) 
and (E) as subparagraphs (C) and (D), respec-
tively. 
(b) VARIABLE TOLL PRICING PROGRAM.—
(1) ESTABLISHMENT.—The Secretary, notwith-
standing sections 129 and 301 of title 23, United 
States Code, may permit a State or public authority 
to toll any highway, bridge, or tunnel, including fa-
cilities on the Interstate System, to manage existing 
high levels of congestion or reduce emissions in a 
nonattainment area or maintenance area. 
(2) BASIC PROGRAM.—The following conditions 
apply to any variable toll pricing program estab-
lished under this section:
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(A) LIMITATION ON USE OF REVENUES.—
All toll revenues received from the operation of 
the toll facility shall be used first for debt serv-
ice, reasonable return on investment of any pri-
vate financing, and the costs necessary for 
proper operation and maintenance of the toll fa-
cility (including reconstruction, resurfacing, res-
toration, and rehabilitation). If the State or 
public authority certifies annually that the 
tolled facility is being adequately maintained, 
then the State or public authority may use any 
excess toll revenues for projects eligible for Fed-
eral assistance under title 23, United States 
Code. 
(B) AGREEMENT.—Before the Secretary 
may permit tolling under this subsection, and 
for each facility that may be tolled, the Sec-
retary and the State or public authority must 
enter into an agreement providing for the con-
ditions in subparagraphs (A) and (C) of this 
paragraph. The agreement shall terminate upon 
the decision of the State or public authority to 
discontinue its variable tolling program for that 
facility. If there is any debt outstanding on the 
facility at the time the decision is made to dis-
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continue the program, the facility may continue 
to be tolled in accordance with the terms of the 
agreement until the debt is retired. 
(C) REQUIREMENTS.—
(i) VARIABLE PRICE REQUIREMENT.—
The Secretary shall require, for each facil-
ity that may be tolled under this sub-
section, that the tolls vary in price accord-
ing to time of day, as appropriate, to man-
age congestion or to improve air quality. 
(ii) 
HOV 
PASSENGER
REQUIRE-
MENTS.—In addition to the exceptions to 
the high occupancy vehicle passenger re-
quirements 
established 
under 
section 
102(a)(2) of title 23, United States Code, 
a State may permit vehicles with fewer 
than 2 occupants to operate in high occu-
pancy vehicle lanes as part of a variable 
toll pricing program established under this 
subsection. 
(D) LIMITATION
ON
FEDERAL
SHARE.—
The Federal share payable for projects on the 
tolled facility, including projects to install toll 
collection facilities, shall be a percentage deter-
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mined by the State but shall not exceed 80 per-
cent. 
(3) ELIGIBILITY.—To be eligible to participate 
in the program, a State or public authority shall 
provide to the Secretary—
(A) a description of the congestion or air 
quality problems sought to be addressed under 
this program; 
(B) an identification of the goals sought to 
be achieved and the performance measures that 
would be used to gauge the success made to-
ward reaching those goals; and 
(C) such other information as the Sec-
retary may require. 
(4) DEFINITIONS.—
(A) 
MAINTENANCE
AREA.—The 
term 
‘‘maintenance area’’ has the same meaning 
given the term under section 101 of title 23, 
United States Code. 
(B) NONATTAINMENT
AREA.—The term 
‘‘nonattainment area’’ has the same meaning 
given the term under section 7501 of title 42, 
United States Code. 
(c) REPEAL.—Section 1012(b) of the Intermodal 
Surface Transportation Efficiency Act, as amended by
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section 1216(a) of the Transportation Equity Act for the 
21st Century, is repealed. Notwithstanding the repeal of 
section 1012(b), the Secretary shall monitor and allow any 
value pricing program established under a cooperative 
agreement in effect on the date of enactment of this Act 
to continue. 
SEC. 1616. OZONE STANDARDS, PARTICULATE MATTER 
STANDARDS, 
AND 
REGIONAL 
HAZE 
PRO-
GRAM. 
(a) TITLE.—The heading of title VI of the Transpor-
tation Equity Act for the 21st Century (Public Law 105–
178; 112 Stat. 463; June 9, 1998) is amended to read 
as follows: 
‘‘TITLE VI—OZONE STANDARDS, 
PARTICULATE 
MATTER 
STANDARDS, AND REGIONAL 
HAZE PROGRAM’’. 
(b) FINDINGS AND PURPOSE.—Section 6101 of such 
Act is amended to read as follows: 
‘‘§ 6101. Findings and purpose 
‘‘(a) The Congress finds that—
‘‘(1) the fine particle (PM–2.5) standards pro-
mulgated by the Administrator of the Environmental 
Protection Agency (referred to in this title as ‘‘Ad-
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ministrator’’) in July 1997 were established to pro-
tect the public health and welfare; 
‘‘(2) there is a continuing need for PM–2.5 air 
quality monitoring data; 
‘‘(3) with three years of PM–2.5 air quality 
monitoring data for all areas expected to be available 
by 2003 it is important to move forward to des-
ignate areas as attainment or nonattainment and 
proceed with implementation of these standards; 
‘‘(4) it will be beneficial to States to develop 
and submit implementation plans for the PM–2.5 
standards and the regional haze program at the 
same time; and 
‘‘(5) Western States that participated in the 
Grand Canyon Visibility Transport Commission 
should be permitted to submit plans in 2003 to im-
plement recommendations set forth in the Commis-
sion’s report. 
‘‘(b) The purposes of this title are— 
‘‘(1) to ensure the availability of PM–2.5 air 
quality monitoring data; 
‘‘(2) to establish a deadline for the designation 
of areas for the PM–2.5 standards; and 
‘‘(3) to ensure that States are able to develop 
PM–2.5 and regional haze implementation plans at
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the same time for all areas within a State, while 
continuing to allow nine Western States the option 
of submitting regional haze plans in 2003 to imple-
ment regional haze requirements based on the 1996 
recommendations of the Grand Canyon Visibility 
Transport Commission.’’. 
(c) PARTICULATE MATTER AND REGIONAL HAZE.— 
(1) The heading of section 6102 of the Trans-
portation Equity Act for the 21st Century is amend-
ed to read as follows: 
‘‘§ 6102. Particulate matter and regional haze pro-
grams’’. 
(2) Section 6102(c) of such Act is amended to 
read as follows: 
‘‘(c)(1) The Governors shall be required to submit 
designations referred to in section 107(d)(1) of the Clean 
Air Act (42 U.S.C. 7407(d)(1)) for each area following 
promulgation of the July 1997 PM–2.5 national ambient 
air quality standard by September 30, 2003, based on air 
quality monitoring data collected in accordance with any 
applicable Federal reference methods for the relevant 
areas. Only data from the monitoring network designated 
in subsection (a) and other Federal reference method PM–
2.5 monitors shall be considered for such designations. 
Nothing in the previous sentence shall be construed as af-
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fecting the Governor’s authority to designate an area ini-
tially as nonattainment, and the Administrator’s authority 
to promulgate the designation of an area as nonattain-
ment, under section 107(d)(1) of the Clean Air Act, based 
on its contribution to ambient air quality in a nearby non-
attainment area. 
‘‘(2)(A) Each State shall submit, for the entire State, 
the State implementation plan revisions to meet the re-
quirements promulgated by the Administrator under sec-
tion 169B(e)(1) of the Clean Air Act (42 U.S.C. 
7492(e)(1)) (hereinafter in this paragraph referred to as 
‘‘the regional haze requirements’’) by 3 years after the 
date the Administrator promulgates the designations re-
ferred to in subsection (d) for such State. 
‘‘(B) The provisions of subparagraph (A) of this 
paragraph shall not preclude the implementation of the 
agreements and recommendations set forth in the Grand 
Canyon Visibility Transport Commission Report dated 
June 1996. These provisions shall not preclude the sub-
mission of State implementation plan revisions by the 
States of Arizona, California, Colorado, Idaho, Nevada, 
New Mexico, Oregon, Utah, or Wyoming by December 31, 
2003, for implementation of the regional haze require-
ments as they apply to such States. Each of the aforemen-
tioned States submitting such plan revisions shall also
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submit statewide implementation plan revisions, as re-
quired under subparagraph (A), to address, as necessary, 
any additional mandatory Class I Federal areas not ad-
dressed by the revisions submitted pursuant to the pre-
ceding sentence.’’. 
(3) Section 169B(e)(2) of the Clean Air Act 
(42 U.S.C. 7492(e)(2)) is repealed. 
(4) Section 6102(d) of the Transportation Eq-
uity Act for the 21st Century is amended to read as 
follows: 
‘‘(d) Notwithstanding any other provision of law, the 
Administrator shall promulgate the designations referred 
to in subsection (d) of section 107 of the Clean Air Act 
for each area of each State for the July 1997 PM–2.5 
national ambient air quality standards by December 31, 
2004.’’. 
(d) CONFORMING AMENDMENT.—Section 1(b) of the 
Transportation Equity Act for the 21st Century is amend-
ed in the Table of Contents—
(1) in the heading for title VI, by striking 
‘‘OZONE 
AND 
PARTICULATE 
MATTER 
STANDARDS’’ and inserting ‘‘OZONE STAND-
ARDS, PARTICULATE MATTER STANDARDS, 
AND REGIONAL HAZE PROGRAM’’; and
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(2) in the item relating to section 6102, by 
striking ‘‘monitoring program’’ and inserting ‘‘and 
regional haze programs’’. 
SEC. 1617. INDEMNIFICATION ON CERTAIN RAILBANKED 
PROJECTS. 
Where, pursuant to a final judgment, a Federal court 
finds the United States liable by operation of section 8(d) 
the National Trails System Act (enacted by section 208 
of Public Law 98–11, 97 Stat. 48) (16 U.S.C. 1247(d)), 
for a taking of property under the Fifth Amendment to 
the United States Constitution, a State that has received 
funds, after the date of enactment of this Act, under a 
Federal-aid highway program established under title 23, 
United States Code, and that has used a portion of those 
funds to acquire, develop, maintain or improve a railroad 
right-of-way that is the subject of the judgment, shall in-
demnify the United States up to the lesser amount of the 
judgment awarded (including attorney fees) or the Fed-
eral-aid highway program funds received in connection 
with that railroad right-of-way.
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Subtitle G—Program Efficiencies 
and Improvements—Operations 
SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS. 
(a) DEFINITIONS.— Section 101(a) of title 23, 
United States Code, is amended—
(1) in paragraph (3)—
(A) by inserting ‘‘and intermodal oper-
ations to enhance security’’ after ‘‘program’’ in 
the first sentence; and 
(B) in subparagraph (G), by striking ‘‘traf-
fic control systems,’’; 
(2) in paragraph (18), as redesignated by this 
Act, by inserting ‘‘costs incurred by transportation 
agencies attributed to operation of technology used 
to monitor critical transportation infrastructure for 
security purposes,’’ after ‘‘rent,’’ and by inserting 
‘‘transportation systems management and operations 
and’’ after ‘‘with’’; 
(3) in paragraph (19)(A)(i), as redesignated by 
this Act, by inserting—
(A) ‘‘transportation system management 
and operations, including,’’ after ‘‘for’’; 
(B) ‘‘and transportation security’’ after 
‘‘installation of traffic’’; and
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(C) ‘‘equipment and programs for trans-
portation response to manmade and natural dis-
asters,’’ after ‘‘incident management pro-
grams,’’; 
(4) by redesignating paragraphs (39) and (40), 
as redesignated by this Act, as paragraphs (40) and 
(41), respectively; and 
(5) by inserting new paragraph (39) after para-
graph (38), as follows: 
‘‘(39) TRANSPORTATION
SYSTEMS
MANAGE-
MENT AND OPERATIONS.—The term ‘‘transportation 
systems management and operations’’ means an in-
tegrated program to optimize the performance of ex-
isting infrastructure through the implementation of 
multi- and intermodal, cross-jurisdictional systems, 
services, and projects designed to preserve capacity 
and improve security, safety, and reliability of Fed-
eral-aid highways. Transportation systems manage-
ment and operations includes regional operations 
collaboration and coordination activities between 
transportation and public safety agencies, and im-
provements such as traffic detection and surveil-
lance, arterial management, freeway management, 
demand management, work zone management, emer-
gency management, electronic toll collection, auto-
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mated enforcement, traffic incident management, 
roadway weather management, traveler information 
services, commercial vehicle operations, traffic con-
trol, freight management, and coordination of high-
way, rail, transit, bicycle, and pedestrian oper-
ations.’’. 
(b) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5) 
of such title is amended by inserting ‘‘improve transpor-
tation systems management and operations,’’ after ‘‘inter-
sections,’’
(c) SURFACE TRANSPORTATION PROGRAM ELIGI-
BILITY.—Section 133(b) of such title, as amended by sec-
tion 1608 of this Act, is further amended by adding at 
the end the following: 
‘‘(17) Regional transportation operations col-
laboration and coordination activities that are asso-
ciated with regional improvements, such as traffic 
incident management, technology deployment, emer-
gency management and response, traveler informa-
tion, and regional congestion relief.’’.
(d) TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS.—Chapter 1 of such title, as amended by 
this Act, is further amended by inserting the following new 
section after section 164:
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‘‘§ 165. Transportation systems management and op-
erations 
‘‘(a) AUTHORITY.—To ensure efficient and effective 
transportation systems management and operations on 
Federal-aid highways, through collaboration, coordination, 
and real-time information sharing, at a regional level, be-
tween transportation system managers and operators, 
public safety officials, and the general public, and to man-
age and operate Federal-aid highways in a coordinated 
manner to preserve the capacity and maximize the per-
formance of existing highway and transit facilities for 
travelers and carriers, the Secretary of Transportation 
may—
‘‘(1) encourage transportation system man-
agers, operators, public safety officials, and trans-
portation planners within an urbanized area, who 
are actively engaged in and responsible for con-
ducting the day-to-day management, operations, 
public safety, and planning of transportation facili-
ties and services, to collaborate and coordinate on a 
regional level in a continuous and sustained manner, 
for improved transportation systems management 
and operations, including, at a minimum— 
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared 
by all transportation and public safety partici-
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pants for how the regions’ systems should be 
managed, operated, and measured; 
‘‘(B) sharing of information among opera-
tors, service providers, public safety officials, 
and the general public; and 
‘‘(C) guiding in a regionally-coordinated 
manner, the implementation of regional trans-
portation system management and operations 
initiatives including emergency evacuation and 
response, traffic incident management, tech-
nology deployment, and traveler information 
systems delivery, in a manner consistent with 
and integrated into the ongoing Metropolitan 
and Statewide transportation planning proc-
esses and regional intelligent transportation 
system architecture, if required; and 
‘‘(2) encourage States to establish a system of 
basic real-time monitoring capability for the surface 
transportation system and provide the capability and 
means to share that data among agencies (highways, 
transit, public safety), jurisdictions (including states, 
cities, counties, metropolitan planning organiza-
tions), private-sector entities; and the traveling pub-
lic.
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‘‘(b) EXECUTION.—To support the successful execu-
tion of transportation systems management and oper-
ations activities, the Secretary may undertake the fol-
lowing: 
‘‘(1) Assist and cooperate with other Federal 
departments and agencies, State and local govern-
ments, metropolitan planning organizations, private 
industry, and other interested parties to improve re-
gional collaboration and real—time information 
sharing between transportation system managers 
and operators, public safety officials, emergency 
managers, and general public to increase security, 
safety, and reliability of our Federal-aid highways. 
‘‘(2) Issue, if necessary, new guidance or regu-
lations for the procurement of transportation system 
management and operations facilities, equipment, 
and services, including but not limited to equipment 
procured in preparation for manmade or natural dis-
asters and emergencies, system hardware, software, 
and software integration services. In developing such 
guidelines, the Secretary may consider innovative 
procurement methods that support the timely and 
streamlined execution of transportation system man-
agement and operations programs and projects.
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‘‘(3) Approve for Federal financial assistance 
from funds apportioned under section 104(b)(3) of 
this title support for regional operations collabora-
tion and coordination activities that are associated 
with regional improvements, such as traffic incident 
management, technology deployment, emergency 
management and response, traveler information, and 
congestion relief.’’. 
(e) CONFORMING AMENDMENT.—The analysis for 
chapter 1 of such title is amended by inserting after the 
item relating to section 164 the following:
‘‘165. Transportation systems management and operations.’’.
SEC. 1702. REAL–TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM. 
(a) GOALS AND PURPOSES.—
(1) GOALS.—The goals of the real-time system 
management information program are to provide the 
nationwide capability to monitor, in real-time, the 
traffic and travel conditions of our nation’s major 
highways and to widely share that information to 
improve the security of the surface transportation 
system, address congestion problems, support im-
proved response to weather events, and facilitate na-
tional and regional traveler information. 
(2) PURPOSES.—The purposes of the real-time 
system management information program are to—
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(A) establish a nationwide system of basic 
real-time information for managing and oper-
ating our surface transportation system; 
(B) identify longer range real-time high-
way and transit monitoring needs and develop 
plans and strategies for meeting those needs; 
and 
(C) provide the capability and means to 
share that data with state and local govern-
ments, and the traveling public. 
(b) DATA EXCHANGE FORMATS.—Within one year of 
enactment of this Act, the Secretary shall establish data 
exchange formats to ensure that the data provided by 
highway and transit monitoring systems, including state-
wide incident reporting systems can readily be exchanged 
across jurisdictional boundaries, facilitating nationwide 
availability of information. 
(c) STATEWIDE INCIDENT REPORTING SYSTEM.—
Within 2 years of enactment of this legislation, each State 
shall establish a statewide incident reporting system. 
(d) REGIONAL INTELLIGENT TRANSPORTATION SYS-
TEM ARCHITECTURE.—
(1) As State and local governments develop or 
update their regional ITS architectures, as specified 
in section 940.9 of title 23, Code of Federal Regula-
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tions (Regional ITS Architecture), they shall explic-
itly address their real-time highway and transit in-
formation needs and the systems needed to meet 
those needs. This specific incorporation of informa-
tion needs should address coverage, monitoring sys-
tems, data fusion and archiving, and methods of ex-
changing or sharing this information. 
(2) States are encouraged to incorporate the 
data exchange formats developed by the Secretary to 
ensure that the data provided by highway and tran-
sit monitoring systems can readily be exchanged 
across state and local governments, and with the 
traveling public. 
(e) ELIGILIBITY.—
(1) USE OF SURFACE TRANSPORTATION PRO-
GRAM FUNDS.—Subject to project approval by the 
Secretary, a State may obligate funds apportioned to 
it under section 104(b)(3) of title 23, United States 
Code, for activities related to the planning and de-
ployment of real-time monitoring elements. 
(2) USE
OF
NATIONAL
HIGHWAY
SYSTEM 
FUNDS.—Subject to project approval by the Sec-
retary, a State may obligate funds apportioned to it 
under section 104(b)(1) of title 23, United States
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Code, for activities related to the planning and de-
ployment of real-time monitoring elements. 
(3) USE OF STATE PLANNING AND RESEARCH 
FUNDS.—Subject to project approval by the Sec-
retary, a State may obligate funds available under 
section 104(i) of title 23, United States Code, as 
amended by section 1503 of this Act, for activities 
related to the planning of real-time monitoring ele-
ments. 
(f) DEFINITION.—In this section, the term ‘‘state-
wide incident reporting system’’ means a statewide system 
for facilitating the real-time electronic reporting of inci-
dents to a central location for use in monitoring the event, 
providing accurate traveler information, and responding to 
the incident as appropriate. 
SEC. 1703. INTELLIGENT TRANSPORTATION SYSTEMS PER-
FORMANCE INCENTIVE PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
comprehensive incentive program to accelerate the integra-
tion and interoperability of intelligent transportation sys-
tems in order to improve the performance of the surface 
transportation system in metropolitan and rural areas. 
(b) DEFINITIONS.— 
(1) 
INTELLIGENT
TRANSPORTATION
SYS-
TEMS.—The term ‘‘intelligent transportation sys-
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tems’’ has the meaning given the term under section 
5507 of this Act. 
(2) NATIONAL
HIGHWAY
SYSTEM.—The term 
‘‘National Highway System’’ means the Federal-aid 
highway system described in section 103(b) of title 
23, United States Code. 
(3) REGION.—The term ‘‘region’’ means any 
geographic area that identifies the boundaries of the 
regional Intelligent Transportation Systems architec-
ture and is defined by the needs of the participating 
agencies and their stakeholders for the purposes of 
improving surface transportation operations. A re-
gion may include a metropolitan planning area, a 
corridor, a State, or multiple states. 
(c) GOAL.—The goal of the intelligent transportation 
systems performance incentive program is to reduce traffic 
congestion, improve transportation system reliability, pro-
vide better customer service to users of the highway sys-
tem, and improve safety and security by providing finan-
cial incentives to transportation agencies to invest in 
proactively monitoring and managing the performance of 
the transportation system. 
(d) PURPOSE.—The purpose of the intelligent trans-
portation systems performance incentive program is to 
support the deployment and integration of intelligent
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transportation systems based on the performance of these 
systems in improving the management and operation of 
their surface transportation systems. 
(e) REGULATIONS.—
(1) ISSUANCE.—The Secretary of Transpor-
tation shall issue regulations establishing a funding 
formula for the distribution of funds under this sec-
tion. 
(2) BASIS FOR FUNDING FORMULA.—The fund-
ing formula shall be based on criteria that reflect 
each State’s—
(A) reductions in delay due to incidents; 
(B) improvements in the operation and 
safety of signalized intersections; 
(C) reductions in delay and improvements 
in safety of work zones on the National High-
way System; 
(D) improvements in the efficiency and re-
liability of transit services; 
(E) overall improvement in integrated re-
gional transportation operations; 
(F) improvements in the quality and avail-
ability of traveler information; 
(G) improved crash notification; and
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(H) improvements in the safety and pro-
ductivity of commercial vehicle operations on 
the National Highway System. 
(3) EFFECTIVE
DATE.—The funding formula 
shall take effect in the fiscal year established by the 
Secretary in the regulations. 
(4) APPORTIONMENT PHASE-IN.—The funding 
formula shall provide for the apportionment of funds 
in the following manner: 
(A) FIRST FISCAL YEAR.—In the first fis-
cal year that the funding formula is in effect, 
50 percent of the sums authorized to be appro-
priated for expenditure on the intelligent trans-
portation systems performance incentive pro-
gram for that fiscal year shall be apportioned 
according to the funding formula developed 
under this subsection and 50 percent of the 
amount shall be apportioned in accordance with 
the formula set forth in section 104(b)(1)(A)(i) 
through (iv) of title 23, United States Code. 
(B) SECOND FISCAL YEAR.—In the second 
fiscal year the funding formula is in effect, 75 
percent of the sums authorized to be appro-
priated for expenditure on the intelligent trans-
portation systems performance incentive pro-
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Code, shall apply to any project carried out under 
this section. 
(g) APPORTIONMENTS.—The Secretary shall appor-
tion the sums authorized to be appropriated for expendi-
ture on the intelligent transportation systems performance 
incentive program among the States in accordance with 
the formula set forth in section 104(b)(1)(A)(i) through 
(iv) of title 23, United States Code, until the fiscal year 
established by the regulation under subsection (e)(3). 
(h) USE OF FUNDS.—Amounts apportioned under 
this section shall be used for projects involving planning, 
deployment, integration, and operation of intelligent trans-
portation systems, or any other project or activity de-
signed to further improve system operations. Funds ap-
portioned to each State under this section should be made 
available for projects in metropolitan planning areas, cor-
ridors, and other regions as appropriate to improve oper-
ations. 
SEC. 1704. COMMERCIAL VEHICLE INFORMATION SYSTEMS 
AND NETWORKS DEPLOYMENT. 
(a) IN GENERAL.—The Secretary shall carry out a 
Commercial Vehicle Information Systems and Networks 
program to—
(1) improve the safety and productivity of com-
mercial vehicles and drivers; and
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(2) reduce costs associated with commercial ve-
hicle operations and Federal and State commercial 
vehicle regulatory requirements. 
(b) PURPOSE.—The program shall advance the tech-
nological capability and promote the deployment of intel-
ligent transportation system applications for commercial 
vehicle operations, including commercial vehicle, commer-
cial driver, and carrier-specific information systems and 
networks. 
(c) CORE DEPLOYMENT GRANTS.—
(1) IN GENERAL.—The Secretary shall make 
grants to eligible States for the core deployment of 
Commercial Vehicle Information Systems and Net-
works. 
(2) ELIGIBILITY.— To be eligible for a core de-
ployment grant under this section, a State—
(A) shall have a Commercial Vehicle Infor-
mation Systems and Networks program plan 
and a top level system design approved by the 
Secretary; 
(B) shall certify to the Secretary that its 
Commercial Vehicle Information Systems and 
Networks deployment activities, including hard-
ware procurement, software and system devel-
opment, and infrastructure modifications, are
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consistent with the national intelligent transpor-
tation systems and Commercial Vehicle Infor-
mation Systems and Networks architectures 
and available standards, and promote interoper-
ability and efficiency to the extent practicable; 
and 
(C) shall agree to execute interoperability 
tests developed by the Federal Motor Carrier 
Safety Administration to verify that its systems 
conform with the national intelligent transpor-
tation systems architecture, applicable stand-
ards, and protocols for Commercial Vehicle In-
formation Systems and Networks. 
(3) AMOUNT OF GRANTS.—The maximum ag-
gregate amount a State may receive under this sec-
tion for the core deployment of Commercial Vehicle 
Information Systems and Networks may not exceed 
$2.5 million, including funds received under sections 
4001(e) and 5001(a)(5) and (6) of the Transpor-
tation Equity Act for the 21st Century for the core 
deployment of Commercial Vehicle Information Sys-
tems and Networks. 
(4) USE
OF
FUNDS.—Funds from a grant 
under this subsection may only be used for the core 
deployment of Commercial Vehicle Information Sys-
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tems and Networks. Eligible States that have either 
completed the core deployment of Commercial Vehi-
cle Information Systems and Networks or complete 
such deployment before core deployment grant funds 
are expended, may use the remaining core deploy-
ment grant funds for the expanded deployment of 
Commercial Vehicle Information Systems and Net-
works in their State. 
(d) EXPANDED DEPLOYMENT GRANTS.—
(1) IN GENERAL.—For each fiscal year, from 
the funds remaining after the Secretary has made 
core deployment grants under subsection (c) of this 
section, the Secretary may make grants to each eli-
gible State, upon request, for the expanded deploy-
ment of Commercial Vehicle Information Systems 
and Networks. 
(2) ELIGIBILITY.—Each State that has com-
pleted the core deployment of Commercial Vehicle 
Information Systems and Networks is eligible for an 
expanded deployment grant. 
(3) AMOUNT OF GRANTS.—Each fiscal year, the 
Secretary may distribute funds available for ex-
panded deployment grants equally among the eligible 
States, but not to exceed $1 million per State.
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(4) USE OF FUNDS.—A State may use funds 
from a grant under this subsection only for the ex-
panded deployment of Commercial Vehicle Informa-
tion Systems and Networks. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project payable from funds made available to carry 
out this section shall not exceed 50 percent. The total Fed-
eral share of the cost of a project payable from all eligible 
sources shall not exceed 80 percent. 
(f) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated under sec-
tion 1101(a)(15) of this Act shall be available for obliga-
tion in the same manner and to the same extent as if such 
funds were apportioned under chapter 1 of title 23, United 
States Code, except that such funds shall remain available 
until expended.
(g) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) COMMERCIAL VEHICLE INFORMATION SYS-
TEMS AND NETWORKS.—The term ‘‘Commercial Ve-
hicle Information Systems and Networks’’ means the 
information systems and communications networks 
that provide the capability to— 
(A) improve the safety of commercial vehi-
cle operations;
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(B) increase the efficiency of regulatory in-
spection processes to reduce administrative bur-
dens by advancing technology to facilitate in-
spections and increase the effectiveness of en-
forcement efforts; 
(C) advance electronic processing of reg-
istration information, driver licensing informa-
tion, fuel tax information, inspection and crash 
data, and other safety information; 
(D) enhance the safe passage of commer-
cial vehicles across the United States and 
across international borders; and 
(E) promote the communication of infor-
mation among the States and encourage 
multistate cooperation and corridor develop-
ment. 
(2) COMMERCIAL VEHICLE OPERATIONS.—The 
term ‘‘commercial vehicle operations’’— 
(A) means motor carrier operations and 
motor vehicle regulatory activities associated 
with the commercial movement of goods, includ-
ing hazardous materials, and passengers; and 
(B) with respect to the public sector, in-
cludes the issuance of operating credentials, the 
administration of motor vehicle and fuel taxes,
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and roadside safety and border crossing inspec-
tion and regulatory compliance operations. 
(3) CORE DEPLOYMENT.—The term ‘‘core de-
ployment’’ means the deployment of systems in a 
State necessary to provide the State with the fol-
lowing capabilities: 
(A) Safety information exchange to—
(i) electronically collect and transmit 
commercial vehicle and driver inspection 
data at a majority of inspection sites; 
(ii) connect to the Safety and Fitness 
Electronic Records (SAFER) system for 
access to interstate carrier and commercial 
vehicle data, summaries of past safety per-
formance, and commercial vehicle creden-
tials information; and 
(iii) exchange carrier data and com-
mercial vehicle safety and credentials infor-
mation within the State and connect to 
Safety and Fitness Electronic Records 
(SAFER) for access to interstate carrier 
and commercial vehicle data. 
(B) Interstate credentials administration 
to—
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(i) perform end-to-end processing, in-
cluding carrier application, jurisdiction ap-
plication 
processing, 
and 
credential 
issuance, of at least the International Reg-
istration Plan (IRP) and International 
Fuel Tax Agreement (IFTA) credentials 
and extend this processing to other creden-
tials, including intrastate, titling, oversize/
overweight, carrier registration, and haz-
ardous materials; 
(ii) connect to the International Reg-
istration Plan (IRP) and International 
Fuel Tax Agreement (IFTA) clearing-
houses; and 
(iii) have at least 10 percent of the 
transaction volume handled electronically 
and have the capability to add more car-
riers and to extend to branch offices where 
applicable. 
(C) Roadside electronic screening to elec-
tronically screen transponder-equipped commer-
cial vehicles at a minimum of one fixed or mo-
bile inspection site and to replicate this screen-
ing at other sites.
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(4) EXPANDED DEPLOYMENT.—The term ‘‘ex-
panded deployment’’ means the deployment of sys-
tems in a State that exceed the requirements of a 
core deployment of Commercial Vehicle Information 
Systems and Networks, improve safety and the pro-
ductivity of commercial vehicle operations, and en-
hance transportation security. 
Subtitle H—Program Efficiencies 
and Improvements—Federal-Aid 
Stewardship 
SEC. 1801. SURFACE TRANSPORTATION SYSTEM PERFORM-
ANCE PILOT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
and implement a Surface Transportation System 
Performance Pilot Program. Subject to this section, 
a State may assume some or all, as the Secretary 
and State may agree, of the Secretary’s responsibil-
ities under title 23, United States Code, or assume 
all or some, as they may agree, of the Secretary’s re-
sponsibilities under any Federal law, for projects 
constructed with Federal funds under this pilot pro-
gram. 
(2) OBLIGATION
OF
FUNDS.—States partici-
pating in this pilot program may obligate funds
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under sections 104(b)(1), 104(b)(3), 104(b)(4), 
104(b)(5), 105, and 144(e) of title 23, United States 
Code, for any purpose for which Federal funds may 
be obligated by a State under title 23. However, the 
State shall reserve 10 percent of the funds appor-
tioned under section 104(b)(3) in each fiscal year for 
transportation enhancement activities as specified in 
section 133(d)(1), as amended by this Act. 
(3) PURPOSE.—The purpose of this perform-
ance pilot program is to demonstrate the benefits of 
performance-based management and to determine 
how such an approach can be best incorporated into 
an effective federally-assisted, State administered 
federal-aid highway program. The Secretary shall 
work closely with potential pilot States to determine 
ways to build into program-level oversight perform-
ance measures that reflect both State and national 
interests and to apply them with specific measure-
ment of program effectiveness. 
(b) STATE PARTICIPATION.—
(1) NUMBER OF PARTICIPATING STATES.—The 
Secretary may permit up to five States to participate 
in the performance pilot program established under 
subsection (a).
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(2) APPLICATION.—To participate in the per-
formance pilot program, a State shall submit an ap-
plication to the Secretary that contains, at a min-
imum, the following: 
(A) A description of the State’s long-term 
and short-term transportation goals. 
(B) A description of how the State will ad-
dress any areas of national strategic impor-
tance, as may be determined by the Secretary, 
in reaching its goals. The areas of national 
strategic importance must include the following: 
national security, interstate commerce, mobility, 
safety, and environmental stewardship. 
(C) A description of the performance 
measures under which the State’s progress and 
success toward reaching its goals would be 
measured. 
(D) A description of how funding will be 
distributed equitably across the State, including 
to urbanized areas with populations in excess of 
200,000. This would include addressing how 
local units of government would be consulted in 
the process of program development and imple-
mentation.
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(E) Evidence of the State’s notice and so-
licitation of public comment and copies of com-
ments received from such solicitation. 
(F) Such other information as the Sec-
retary may require. 
(3) PUBLIC NOTICE.—Each State that submits 
an application under this subsection, shall give pub-
lic notice of its intent to participate in the pilot pro-
gram at least 20 days prior to submitting its appli-
cation to the Secretary. The State shall provide no-
tice and solicit public comment by publishing the en-
tire application in accordance with the State’s public 
notice law. 
(4) SELECTION CRITERIA.—The Secretary may 
approve the application of a State under this section 
only if the application demonstrates how the State 
plans to address the areas of national strategic im-
portance as identified in subsection (b)(2)(B). The 
Secretary will prioritize the selection of applications 
based on the degree to which the applicant’s pro-
posed goals address the areas of national strategic 
importance, the State’s ability to manage and mon-
itor its programs on a performance basis, the State’s 
commitment to conduct the required evaluations,
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decision regarding the public availability of 
a document under those laws is reviewable 
by a court of competent authority. 
(2) OTHER
FEDERAL
AGENCY
VIEWS.—If a 
State assumes a responsibility of the Secretary 
under paragraph (1) of this subsection that would 
have required the Secretary to consult with another 
Federal agency, the Secretary shall solicit the views 
of such Federal agency prior to entering into or re-
newing any program agreement. 
(3) MAINTENANCE OF EFFORT.—The Secretary 
shall not make any apportionment to a State partici-
pating in this performance pilot program in any fis-
cal year under sections 104(b)(1), 104(b)(3), 
104(b)(4), 104(b)(5), 105, and 144(e) of title 23, 
United States Code, unless the State enters into 
such agreements with the Secretary as the Secretary 
may require to ensure that the State will maintain 
its non-Federal transportation capital expenditures 
in any fiscal year at or above the average level of 
such expenditures for the preceding three fiscal 
years. 
(4) FEDERAL SHARE PAYABLE.—The Federal 
share payable under this performance pilot program 
for a project funded with apportionments under sec-
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tions 104(b)(1), 104(b)(3), 104(b)(4), 104(b)(5), 
105, and 144(e) of title 23, United States Code, 
may be up to 100 percent; except that, the Federal 
share payable for transportation enhancements 
under section 133(d)(1), shall be determined in ac-
cordance with title 23, United States Code. 
(d) PROGRAM AGREEMENT.—
(1) IN GENERAL.—Each year prior to making 
any apportionments to a participating State, the 
Secretary shall enter into an agreement with the 
State establishing its performance goals and per-
formance measures.
(2) AGREEMENT
CONCERNING
PARTICIPATING 
STATE’S
RESPONSIBILITIES.—The Secretary shall 
enter into one or more agreements with a State se-
lected for participation in this pilot program con-
cerning which, if any, Federal laws or requirements 
the State will carry out under subsection (c). The 
program agreement between the Secretary and the 
State shall specify management responsibilities, in-
cluding the role of the State in relation to other 
Federal agencies. 
(3) GOALS.—The Secretary and participating 
State shall agree, based on the State’s priorities and 
the areas of national strategic importance as deter-
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mined by the Secretary, on the long-term and short-
term goals to be achieved using the State’s appor-
tionments under the program. 
(4) PERFORMANCE MEASURES.—The Secretary 
and the State shall mutually establish the perform-
ance measures that the State must meet relating to 
the goals identified in paragraph (3) of this sub-
section. Continued participation in the pilot program 
is contingent on the State meeting these perform-
ance measures. If a State fails to meet the agreed 
upon performance measures in two consecutive 
years, the Secretary shall terminate a State’s par-
ticipation in the pilot program. 
(5) COMPLIANCE.—If a participating State fails 
to comply with any provision of this section, the Sec-
retary shall take such actions as necessary to ensure 
compliance. Corrective actions may include termi-
nation of the State’s participation in the pilot pro-
gram. 
(e) LIMITATIONS ON AGREEMENTS.—
(1) CIVIL
RIGHTS.—Nothing in this section 
shall be construed as relieving the Secretary from 
any of the Secretary’s responsibilities under title VI 
of the Civil Rights Act of 1964 (42 U.S.C. 2000d, 
et seq.).
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(2) MAJOR PROJECTS.— Nothing in this section 
shall be construed as relieving the Secretary from 
any of the Secretary’s responsibilities with respect to 
major projects under section 106(h) of title 23, 
United States Code. 
(3) STATEWIDE
AND
METROPOLITAN
PLAN-
NING.—Nothing in this section shall be construed as 
relieving the Secretary from any of the Secretary’s 
responsibilities under the Statewide and metropoli-
tan planning requirements of sections 134 and 135 
of title 23, United States Code. 
(4) REGULATORY RESPONSIBILITIES.—Nothing 
in this section shall be construed to allow a State to 
assume any of the Secretary’s rulemaking authority 
under any Federal law. 
(f) STATE REPORTING
AND ACCOUNTABILITY.—A 
State participating in this pilot program shall make the 
following reports to the Secretary. A State may combine 
reports as appropriate. 
(1) STATE CERTIFICATION PRIOR TO OBLIGA-
TION
OF
FUNDS.—As a prerequisite to the Sec-
retary’s agreement that a State will fulfill or assume 
any of the Secretary’s responsibilities, and prior to 
the obligation of any money under this pilot program
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in any fiscal year, the participating State shall pro-
vide, and annually renew, a certification that—
(A) is in a form acceptable to the Sec-
retary; 
(B) is executed by the Governor or the 
State’s 
top-ranking 
transportation 
official 
charged with the responsibility for highway con-
struction; 
(C) specifies that the State will fully carry 
out any of the responsibilities it may assume; 
(D) specifies that the State consents to as-
sume the status of the Secretary under any re-
sponsibility it may assume; and 
(E) expressly consents on behalf of the 
State and himself or herself to accept the juris-
diction of the Federal courts for the compli-
ance, discharge, and enforcement of any respon-
sibility of the Secretary it may assume. 
(2) END
OF
FISCAL
YEAR
STATE
CERTIFI-
CATION.—At the end of each fiscal year in which a 
State obligates funds under this pilot program, the 
State shall certify that it obligated such funds only 
for projects that would otherwise be eligible for as-
sistance under title 23. Such certification shall also 
specify that the State reserved for obligation the
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amounts specified in section 133(d)(1) of such title 
as amended by this Act. 
(3) FISCAL
ACCOUNTABILITY.—Each State 
shall provide an annual accounting for the obliga-
tions in a manner determined by the Secretary in 
such a way as to provide a basis for evaluating the 
effect of the pilot program expenditures. 
(4) ANNUAL STATE ASSESSMENT.—Each State 
will provide to the Secretary a narrative report at 
the end of each year describing the benefits of the 
pilot program to the State and any suggestions for 
improving the pilot program. 
(g) TERMINATION.—This pilot program shall termi-
nate six years following enactment of this Act. Funding 
obligated under the pilot program shall continue to be ad-
ministered under the terms of the pilot program until 
those funds have been expended. 
SEC. 1802. STEWARDSHIP AND OVERSIGHT. 
(a) Section 106 of title 23, United States Code, is 
amended— 
(1) by striking subsection (e) and inserting the 
following: 
‘‘(e) VALUE ENGINEERING ANALYSIS.—
‘‘(1) ANALYSIS.—For all projects on the Na-
tional Highway System with an estimated total cost
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of $25,000,000 or more, and any project the Sec-
retary deems appropriate, the State shall provide a 
value engineering analysis or other cost reduction 
analysis. For major projects as identified in sub-
section (h) of this section, more than one such anal-
ysis may be required. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘‘value engineering analysis’’ means a systematic 
process of review and analysis of a project during its 
design phase by a multidisciplined team of persons 
not involved in the project in order to provide sug-
gestions for reducing the total cost of the project 
and providing a project of equal or better quality. 
Such suggestions may include combining or elimi-
nating otherwise inefficient use of expensive parts of 
the original proposal design for the project and total 
redesign of the proposed project using different tech-
nologies, materials, or methods so as to accomplish 
the original purpose of the project.’’; and 
(2) by striking subsections (g) and (h) and in-
serting the following: 
‘‘(g) OVERSIGHT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an oversight program to monitor the effective 
and efficient use of funds authorized by this title. At
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a minimum, the program shall be responsive to all 
areas related to financial integrity and project deliv-
ery. 
‘‘(2) FINANCIAL INTEGRITY.—
‘‘(A) 
FINANCIAL
MANAGEMENT
SYS-
TEMS.—The Secretary shall perform annual re-
views that address elements of the State trans-
portation departments’ financial management 
systems that affect projects approved under 
subsection (a). Risk assessment procedures 
shall be used to identify review areas. 
‘‘(B) PROJECT
COSTS.—The Secretary 
shall develop minimum standards for estimating 
project costs, and shall periodically evaluate the 
States’ practices for estimating project costs, 
awarding contracts, and reducing project costs. 
‘‘(C) RESPONSIBILITY OF THE STATES.—
The States are responsible for determining that 
subrecipients of Federal funds have sufficient 
accounting controls to properly manage Federal 
funds. The Secretary shall periodically review 
the States’ monitoring of subrecipients. 
‘‘(3) PROJECT DELIVERY.—The Secretary shall 
perform annual reviews that address elements of the 
States’ project delivery system, which includes one
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or more activities that are involved in the life cycle 
of a project from its conception to its completion. 
Risk assessment procedures will be used to identify 
review areas. 
‘‘(4) RESPONSIBILITY
OF
THE
STATES.—The 
States are responsible for determining that sub-
recipients of Federal funds have adequate project 
delivery systems for projects approved under this 
section. The Secretary shall periodically review the 
States’ monitoring of subrecipients. 
‘‘(5) 
SPECIFIC
OVERSIGHT
RESPONSIBIL-
ITIES.—Nothing in this section shall affect or dis-
charge any oversight responsibility of the Secretary 
specifically provided for under this title or other 
Federal law. In addition, the Secretary shall retain 
full oversight responsibilities for the design and con-
struction of all Appalachian development highways 
under section 201 of the Appalachian Regional De-
velopment Act of 1965 (40 U.S.C. App.). 
‘‘(h) MAJOR PROJECTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision in this section, a recipient of Federal fi-
nancial assistance for a project under this title with 
an estimated total cost of $1,000,000,000 or more, 
or any other project in the discretion of the Sec-
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retary, shall submit to the Secretary a project man-
agement plan and an annual financial plan. 
‘‘(2) 
PROJECT
MANAGEMENT
PLAN.—The 
project management plan shall document the proce-
dures and processes in place to provide timely infor-
mation to the project decision makers to effectively 
manage the scope, costs, schedules, and quality, and 
the Federal requirements of the project, and the role 
of the agency leadership and management team in 
the delivery of the project. 
‘‘(3) FINANCIAL
PLAN.—The financial plan 
shall be based on detailed estimates of the cost to 
complete the project. Annual updates shall be sub-
mitted based on reasonable assumptions, as deter-
mined by the Secretary, of future increases in the 
cost to complete the project. 
‘‘(i) OTHER PROJECTS.—A recipient of Federal fi-
nancial assistance for a project under this title that re-
ceives $100,000,000 or more in Federal assistance for 
such project, and that is not covered by subsection (h) 
of this section, shall prepare an annual financial plan. An-
nual financial plans prepared under this subsection shall 
be made available to the Secretary for review upon the 
Secretary’s request.’’. 
(b) Section 114(a) of such title is amended—
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(1) in the first sentence by striking ‘‘highways 
or portions of highways located on a Federal-aid sys-
tem’’ and inserting ‘‘Federal-aid highway or portion 
thereof’’; and 
(2) by striking the second sentence and insert-
ing ‘‘The Secretary shall have the right to inspect 
and take any corrective action as the Secretary may 
deem appropriate.’’. 
(c) Section 117 of such title is amended by striking 
subsection (d) and redesignating subsections (e), (f), (g), 
and (h) as subsections (d), (e), (f), and (g), respectively. 
(d) Section 307 of title 49, United States Code, is 
amended to read as follows: 
‘‘§ Sec. 307. Contractor suspension and debarment 
policy; sharing fraud monetary recov-
eries 
‘‘(a) MANDATORY ENFORCEMENT POLICY.—(1) Not-
withstanding any other provision of law, the Secretary 
shall— 
‘‘(A) debar any contractor or subcontractor con-
victed of criminal or civil offenses involving fraud re-
lated to projects receiving Federal highway or tran-
sit funds. The debarment period shall be determined 
by the Secretary, as appropriate; and
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‘‘(B) suspend any contractor or subcontractor 
upon their indictment for criminal or civil offenses 
involving fraud, subject to the approval of the Attor-
ney General. The Secretary shall have authority to 
exclude non-affiliated subsidiaries of the debarred 
business entity, subject to the approval of the Attor-
ney General. 
‘‘(2) Upon a finding that mandatory debarment or 
suspension of a contractor or subcontractor under sub-
section (1), above, would be contrary to the national secu-
rity interests of the U.S., the Secretary may waive the de-
barment or suspension. 
‘‘(b) SHARING
OF MONETARY RECOVERIES.—(1) 
Notwithstanding any other provision of law, monetary 
judgments accruing to the Federal Government from judg-
ments in Federal criminal prosecutions and civil judg-
ments pertaining to fraud in highway and transit pro-
grams shall be shared with the State or local transit agen-
cy involved. The State or local transit agency shall use 
these funds for transportation infrastructure and over-
sight activities related to programs authorized under titles 
23 and 49. 
‘‘(2) The amount of recovered funds to be shared 
with the affected State or local transit agency shall be de-
termined by the Attorney General in consultation with the
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Secretary. These funds shall be considered Federal funds, 
to be used in compliance with other relevant Federal 
transportation laws and regulations.
‘‘(3) The requirement for sharing of funds described 
in subparagraph (1), above, shall not be in effect in cir-
cumstances wherein the State or local transit agency is 
found by the Department of Justice, in consultation with 
the Secretary, to have been involved or negligent with re-
spect to the fraudulent activities.’’. 
(e) The analysis for chapter 3 of title 49 is amended 
by revising the entry for item 307 to read as follows:
‘‘307. Contractor suspension and debarment policy; sharing fraud monetary re-
coveries.’’.
SEC. 1803. EMERGENCY RELIEF. 
Section 125(c)(1) of title 23, United States Code, is 
amended by striking ‘‘$100,000,000’’ and inserting 
‘‘$200,000,000’’. 
SEC. 1804. FEDERAL LANDS HIGHWAYS PROGRAM. 
(a) DEFINITIONS.—Section 101(a) of title 23, United 
States Code, is amended—
(1) in paragraph (7), by striking ‘‘public lands 
highway’’ and inserting ‘‘recreation roads, public 
Forest Service roads’’; 
(2) by striking paragraph (8) and inserting the 
following:
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‘‘(8) NATIONAL
FOREST
SYSTEM
ROADS
AND 
TRAILS.—The term ‘National Forest System roads 
and trails’ means forest roads or trails under the ju-
risdiction of the Forest Service.’’; 
(3) by striking paragraph (10) and inserting 
the following: 
‘‘(10) FOREST ROAD OR TRAIL.—The term ‘for-
est road or trail’ means a road or trail wholly or 
partly within, or adjacent to, and serving National 
Forest System lands that is necessary for the protec-
tion, administration, use, and development of its re-
sources. There are four types of forest roads: 
‘‘(A) CLASSIFIED
FOREST
ROAD.—The 
term ‘classified forest road’ means a forest road 
that the Forest Service determines to be needed 
for long-term motor vehicle access, including 
State roads, county roads, privately owned 
roads, National Forest System roads, and other 
roads authorized by the Forest Service. 
‘‘(B) UNCLASSIFIED FOREST ROAD.—The 
term ‘unclassified forest road’ means a forest 
road not managed by the Forest Service as part 
of the forest transportation system. 
‘‘(C) TEMPORARY
FOREST
ROAD.—The 
term ‘temporary forest road’ means a forest
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road that is authorized by the Forest Service 
through contract, permit, lease, other written 
authorization, or emergency operation not in-
tended to be a part of the forest transportation 
system and not necessary for long-term re-
source management. 
‘‘(D) PUBLIC
FOREST
SERVICE
ROAD.—
The term ‘Public Forest Service Road’ means a 
classified forest road that is open to public trav-
el for which title and maintenance responsibility 
is vested in the United States government and 
which has been designated a public road by the 
Forest Service.’’; 
(4) in paragraph (26), as redesignated by this 
Act, by striking ‘‘unappropriated or unreserved’’; 
and 
(5) by striking paragraph (27), as redesignated 
by this Act, by redesignating paragraph (28) as 
(27), and by inserting the following new paragraph: 
‘‘(28) RECREATION ROADS.—The term ‘recre-
ation roads’ means those public roads that provide 
access to museums, lakes, reservoirs, visitors cen-
ters, gateways to major wilderness areas, public uses 
areas, recreation and historic sites and for which 
title is vested in the United States Government.’’
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(b) FEDERAL SHARE PAYABLE.—
(1) Section 120(k) of such title is amended by 
striking ‘‘Federal-aid highway’’. 
(2) Sections 120(k) and 120(l) of such title are 
amended by striking ‘‘section 104’’ each time it ap-
pears, and inserting in its place ‘‘this title and chap-
ter 53 of title 49’’. 
(c) PAYMENTS TO FEDERAL AGENCIES FOR FED-
ERAL-AID PROJECTS.—Section 132 of such title is amend-
ed by striking the first two sentences and inserting the 
following: ‘‘Where a proposed Federal-aid project is to be 
undertaken by a Federal agency pursuant to an agreement 
between a State and such Federal agency, the State may 
(1) direct the Secretary to transfer the funds for the Fed-
eral share of the project directly to the Federal agency, 
or (2) make a deposit with or payment to such Federal 
agency as may be required in fulfillment of the State’s 
obligation under such agreement for the work undertaken 
or to be undertaken by such Federal agency; the Sec-
retary, upon execution of a project agreement with such 
State for the proposed Federal-aid project, may reimburse 
the State out of the appropriate appropriations for the es-
timated Federal share, under the provisions of this title, 
of the State’s obligation so deposited or paid by such 
State.’’.
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(d) ALLOCATIONS.—Section 202 of such title is 
amended—
(1) in subsection (a), by inserting ‘‘and grass-
lands’’ after ‘‘national forests’’ in the first sentence; 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) On October 1 of each fiscal year, the Secretary 
shall allocate the sums authorized to be appropriated for 
such fiscal year for forest highways, after making the 
transfer of funds provided for in subsection 204(g) of this 
title, for each fiscal year as is provided in section 134 of 
the Federal-Aid Highway Act of 1987, and with respect 
to these allocations the Secretary shall give equal consider-
ation to projects that provide access to and within the Na-
tional Forest System, as identified by the Secretary of Ag-
riculture through renewable resource and land use plan-
ning and the impact of such planning on existing transpor-
tation facilities.’’; and 
(3) in subsection (d)—
(A) in paragraph (1), by striking ‘‘1999’’ 
in the heading and within paragraph (1) and 
inserting ‘‘2005’’; 
(B) in paragraph (2), by striking ‘‘2000’’ 
in the heading and within paragraphs (2)(A), 
(2)(B), and (2)(D) and inserting ‘‘2005’’, and
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by striking ‘‘1999’’ in paragraph (2)(B) and in-
serting ‘‘2004’’ at each place it appears; 
(C) in paragraph (3)(A), by inserting ‘‘this 
chapter and section 125(e) of’’ after ‘‘under’’, 
and by adding ‘‘and the approved Indian res-
ervation road transportation improvement pro-
gram’’ after ‘‘Act’’; and
(D) in paragraph (4)(D), by striking the 
sentence after ‘‘Approval Requirement.’’ and in-
serting: ‘‘Funds for preliminary engineering for 
Indian reservation road bridge projects under 
this subsection may be made available by the 
Secretary upon request by a tribe or by the Sec-
retary of the Interior. Funds for construction 
and construction engineering shall be made 
available only after approval of the plans, speci-
fications, and estimates by the Secretary.’’. 
(e) PLANNING AND AGENCY COORDINATION.—Sec-
tion 204 of such title is amended—
(1) in subsection (a), by inserting ‘‘refuge 
roads,’’ after ‘‘parkways,’’; 
(2) in subsection (b), by striking ‘‘appropriate 
contracts’’ in the second sentence and inserting ‘‘ap-
propriate agreements’’; 
(3) in subsection (k)—
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(A) by striking ‘‘(2), (5),’’ and inserting 
‘‘(2), (3), (5),’’; 
(B) by striking ‘‘and’’ after the semicolon 
at the end of paragraph (1)(B); 
(C) by striking the period after ‘‘improve-
ments’’ at the end of paragraph (1)(C) and in-
serting a semicolon; and 
(D) by adding after paragraph (1)(C) the 
following new subparagraphs: 
‘‘(D) maintenance of public roads in Na-
tional Fish hatcheries under Fish and Wildlife 
Service jurisdiction; 
‘‘(E) the non-Federal share of the cost of 
any project funded under this title or chapter 
53 of title 49 that provides access to or within 
a wildlife refuge; and 
‘‘(F) maintenance and improvement of rec-
reational trails, but such expenditures on trails 
are limited to 5 percent of available funding per 
fiscal year.’’. 
(f) SAFETY.—
(1) ALLOCATIONS.—Section 202 of such title is 
amended by adding at the end the following: 
‘‘(f) SAFETY.—On October 1 of each fiscal year, the 
Secretary shall allocate the sums authorized to be appro-
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priated for such fiscal year for safety as follows: 10 per-
cent to the Bureau of Reclamation, 15 percent to the Bu-
reau of Indian Affairs, 15 percent to the Bureau of Land 
Management, 15 percent to the Forest Service, 5 percent 
to the Fish and Wildlife Service, 15 percent to Military 
Traffic Management Command, 15 percent to the Na-
tional Park Service, and 10 percent to the U.S. Army 
Corps of Engineers. The Secretary, from time to time, 
may adjust the percentage of safety funds allocated to the 
Federal agencies listed above based on the outputs of 
agency safety management systems, other safety need 
analyses, or studies, and the use of previously allocated 
safety funds.’’. 
(2) AVAILABILITY OF FUNDS.—Section 203 of 
such title is amended in the first sentence by insert-
ing ‘‘safety,’’ after ‘‘refuge roads,’’ at each place it 
appears. 
(3) USE OF FUNDING.—Section 204 is amended 
by adding at the end the following: 
‘‘(l) SAFETY ACTIVITIES.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, funds made available for safe-
ty shall be used by the Secretary and the Secretary 
of the appropriate Federal land management agency 
only to pay the cost of transportation safety im-