H. R. 3—34
reports to the Secretary on the status of the Internal Revenue 
Service projects funded under this subsection.’’. 
(c) ALLOCATIONS.—Of the amounts authorized to be appro-
priated under section 1101(a)(21) of this Act for highway use tax 
evasion projects for each of the fiscal years 2005 through 2009, 
the following amounts shall be allocated to the Internal Revenue 
Service to carry out section 143 of title 23, United States Code: 
(1) $5,000,000 for fiscal year 2005. 
(2) $44,800,000 for fiscal year 2006. 
(3) $53,300,000 for fiscal year 2007. 
(4) $12,000,000 for each of fiscal years 2008 and 2009. 
SEC. 1116. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM. 
(a) APPORTIONMENT.—The Secretary shall apportion funds 
made available by section 1101(a)(7) of this Act for fiscal years 
2005 through 2009 among the States based on the latest available 
cost to complete estimate for the Appalachian development highway 
system under section 14501 of title 40, United States Code. 
(b) APPLICABILITY OF TITLE 23.—Funds made available by sec-
tion 1101(a)(7) of this Act for the Appalachian development highway 
system shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 23, United 
States Code; except that the Federal share of the cost of any 
project under this section shall be determined in accordance with 
section 14501 of title 40, United States Code, and such funds 
shall be available to construct highways and access roads under 
such section and shall remain available until expended. 
(c) USE OF TOLL CREDITS.—Section 120(j)(1) of title 23, United 
States Code, is amended by inserting ‘‘and the Appalachian develop-
ment highway system program under section 14501 of title 40’’ 
after ‘‘section 125’’. 
SEC. 1117. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVA-
TION PROGRAM. 
(a) ESTABLISHMENT.—In cooperation with appropriate State, 
tribal, regional, and local governments, the Secretary shall establish 
a comprehensive program to address the relationships among 
transportation, community, and system preservation plans and 
practices and identify private sector-based initiatives to improve 
such relationships. 
(b) PURPOSE.—Through the program under this section, the 
Secretary 
shall 
facilitate 
the 
planning, 
development, 
and 
implementation of strategies to integrate transportation, commu-
nity, and system preservation plans and practices that address 
one or more of the following: 
(1) Improve the efficiency of the transportation system 
of the United States. 
(2) Reduce the impacts of transportation on the environ-
ment. 
(3) Reduce the need for costly future investments in public 
infrastructure. 
(4) Provide efficient access to jobs, services, and centers 
of trade. 
(5) Examine community development patterns and identify 
strategies to encourage private sector development that 
achieves the purposes identified in paragraphs (1) through (4). 
(c) GENERAL AUTHORITY.—The Secretary shall allocate funds 
made available to carry out this section to States, metropolitan
H. R. 3—35
planning organizations, local governments, and tribal governments 
to carry out eligible projects to integrate transportation, community, 
and system preservation plans and practices. 
(d) ELIGIBILITY.—A project described in subsection (c) is an 
eligible project under this section if the project—
(1) is eligible for assistance under title 23 or chapter 53 
of title 49, United States Code; or 
(2) is to conduct any other activity relating to transpor-
tation, community, and system preservation that the Secretary 
determines to be appropriate, including corridor preservation 
activities that are necessary to implement one or more of the 
following: 
(A) Transit-oriented development plans. 
(B) Traffic calming measures. 
(C) Other coordinated transportation, community, and 
system preservation practices. 
(e) CRITERIA.—In allocating funds made available to carry out 
this section, the Secretary shall give priority consideration to 
applicants that—
(1) have instituted preservation or development plans and 
programs that—
(A) are coordinated with State and local preservation 
or development plans, including transit-oriented develop-
ment plans; 
(B) promote cost-effective and strategic investments 
in transportation infrastructure that minimize adverse 
impacts on the environment; or 
(C) promote innovative private sector strategies; 
(2) have instituted other policies to integrate transpor-
tation, community, and system preservation practices, such 
as—
(A) spending policies that direct funds to high-growth 
areas; 
(B) urban growth boundaries to guide metropolitan 
expansion; 
(C) ‘‘green corridors’’ programs that provide access to 
major highway corridors for areas targeted for efficient 
and compact development; or 
(D) other similar programs or policies as determined 
by the Secretary; 
(3) have preservation or development policies that include 
a mechanism for reducing potential impacts of transportation 
activities on the environment; 
(4) demonstrate a commitment to public and private 
involvement, including the involvement of nontraditional part-
ners in the project team; and 
(5) examine ways to encourage private sector investments 
that address the purposes of this section. 
(f) EQUITABLE DISTRIBUTION.—In allocating funds to carry out 
this section, the Secretary shall ensure the equitable distribution 
of funds to a diversity of populations and geographic regions. 
(g) FUNDING.—
(1) IN GENERAL.—There is authorized to be appropriated 
from the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $25,000,000 for fiscal year 
2005 and $61,250,000 for each of fiscal years 2006 through 
2009.
H. R. 3—36
(2) CONTRACT AUTHORITY.—Funds made available to carry 
out this section shall be available for obligation in the same 
manner as if the funds were apportioned under chapter 1 
of title 23, United States Code; except that such funds shall 
not be transferable, and the Federal share for projects and 
activities carried out with such funds shall be determined in 
accordance with section 120(b) of title 23, United States Code. 
(h) CONFORMING AMENDMENT.—Section 1221 of the Transpor-
tation Equity Act for the 21st Century (23 U.S.C. 101 note; 112 
Stat. 221) is repealed. 
SEC. 1118. TERRITORIAL HIGHWAY PROGRAM. 
(a) IN GENERAL.—Chapter 2 of title 23, United States Code, 
is amended by striking section 215 and inserting the following: 
‘‘§ 215. Territorial highway program 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) PROGRAM.—The term ‘program’ means the territorial 
highway program established under subsection (b). 
‘‘(2) TERRITORY.—The term ‘territory’ means any of the 
following territories of the United States: 
‘‘(A) American Samoa. 
‘‘(B) The Commonwealth of the Northern Mariana 
Islands. 
‘‘(C) Guam. 
‘‘(D) The United States Virgin Islands. 
‘‘(b) PROGRAM.—
‘‘(1) IN GENERAL.—Recognizing the mutual benefits that 
will accrue to the territories and the United States from the 
improvement of highways in the territories, the Secretary may 
carry out a program to assist each government of a territory 
in the construction and improvement of a system of arterial 
and collector highways, and necessary inter-island connectors, 
that is—
‘‘(A) designated by the Governor or chief executive 
officer of each territory; and 
‘‘(B) approved by the Secretary. 
‘‘(2) FEDERAL SHARE.—The Federal share of Federal finan-
cial assistance provided to territories under this section shall 
be in accordance with section 120(h). 
‘‘(c) TECHNICAL ASSISTANCE.—
‘‘(1) IN
GENERAL.—To continue a long-range highway 
development program, the Secretary may provide technical 
assistance to the governments of the territories to enable the 
territories to, on a continuing basis—
‘‘(A) engage in highway planning; 
‘‘(B) conduct environmental evaluations; 
‘‘(C) administer right-of-way acquisition and relocation 
assistance programs; and 
‘‘(D) design, construct, operate, and maintain a system 
of arterial and collector highways, including necessary 
inter-island connectors. 
‘‘(2) FORM AND TERMS OF ASSISTANCE.—Technical assistance 
provided under paragraph (1), and the terms for the sharing
H. R. 3—37
of information among territories receiving the technical assist-
ance, shall be included in the agreement required by subsection 
(e). 
‘‘(d) NONAPPLICABILITY OF CERTAIN PROVISIONS.—
‘‘(1) IN
GENERAL.—Except to the extent that provisions 
of chapter 1 are determined by the Secretary to be inconsistent 
with the needs of the territories and the intent of the program, 
chapter 1 (other than provisions of chapter 1 relating to the 
apportionment and allocation of funds) shall apply to funds 
authorized to be appropriated for the program. 
‘‘(2) APPLICABLE PROVISIONS.—The agreement required by 
subsection (e) for each territory shall identify the sections of 
chapter 1 that are applicable to that territory and the extent 
of the applicability of those sections. 
‘‘(e) AGREEMENT.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (4), 
none of the funds made available for the program shall be 
available for obligation or expenditure with respect to any 
territory until the chief executive officer of the territory enters 
into an agreement with the Secretary (not later than 1 year 
after the date of enactment of SAFETEA–LU), providing that 
the government of the territory shall—
‘‘(A) implement the program in accordance with 
applicable provisions of chapter 1 and subsection (d); 
‘‘(B) design and construct a system of arterial and 
collector highways, including necessary inter-island connec-
tors, in accordance with standards that are—
‘‘(i) appropriate for each territory; and 
‘‘(ii) approved by the Secretary; 
‘‘(C) provide for the maintenance of facilities con-
structed or operated under this section in a condition to 
adequately serve the needs of present and future traffic; 
and 
‘‘(D) implement standards for traffic operations and 
uniform traffic control devices that are approved by the 
Secretary. 
‘‘(2) TECHNICAL ASSISTANCE.—The agreement required by 
paragraph (1) shall—
‘‘(A) specify the kind of technical assistance to be pro-
vided under the program; 
‘‘(B) include appropriate provisions regarding informa-
tion sharing among the territories; and 
‘‘(C) delineate the oversight role and responsibilities 
of the territories and the Secretary. 
‘‘(3) REVIEW AND REVISION OF AGREEMENT.—The agreement 
entered into under paragraph (1) shall be reevaluated and, 
as necessary, revised, at least every 2 years. 
‘‘(4) EXISTING AGREEMENTS.—With respect to an agreement 
under the section between the Secretary and the chief executive 
officer of a territory that is in effect as of the date of enactment 
of the SAFETEA–LU—
‘‘(A) the agreement shall continue in force until 
replaced by an agreement entered into in accordance with 
paragraph (1); and 
‘‘(B) amounts made available for the program under 
the existing agreement shall be available for obligation