H. R. 3—725
required under any Federal law applicable to activities that 
are classified by the Secretary as categorical exclusions, with 
the exception of government-to-government consultation with 
Indian tribes, subject to the same procedural and substantive 
requirements as would be required if that responsibility were 
carried out by the Secretary. 
‘‘(2) SOLE RESPONSIBILITY.—A State that assumes responsi-
bility under paragraph (1) with respect to a Federal law shall 
be solely responsible and solely liable for complying with and 
carrying out that law, and the Secretary shall have no such 
responsibility or liability. 
‘‘(c) MEMORANDA OF UNDERSTANDING.—
‘‘(1) IN GENERAL.—The Secretary and the State, after pro-
viding public notice and opportunity for comment, shall enter 
into a memorandum of understanding setting forth the respon-
sibilities to be assigned under this section and the terms and 
conditions under which the assignments are made, including 
establishment of the circumstances under which the Secretary 
would reassume responsibility for categorical exclusion deter-
minations. 
‘‘(2) TERM.—A memorandum of understanding—
‘‘(A) shall have a term of not more than 3 years; 
and 
‘‘(B) shall be renewable. 
‘‘(3) ACCEPTANCE OF JURISDICTION.—In a memorandum of 
understanding, the State shall consent to accept the jurisdiction 
of the Federal courts for the compliance, discharge, and enforce-
ment of any responsibility of the Secretary that the State 
assumes. 
‘‘(4) MONITORING.—The Secretary shall—
‘‘(A) monitor compliance by the State with the memo-
randum of understanding and the provision by the State 
of financial resources to carry out the memorandum of 
understanding; and 
‘‘(B) take into account the performance by the State 
when considering renewal of the memorandum of under-
standing. 
‘‘(d) TERMINATION.—The Secretary may terminate any assump-
tion of responsibility under a memorandum of understanding on 
a determination that the State is not adequately carrying out the 
responsibilities assigned to the State. 
‘‘(e) STATE AGENCY DEEMED TO BE FEDERAL AGENCY.—A State 
agency that is assigned a responsibility under a memorandum 
of understanding shall be deemed to be a Federal agency for the 
purposes of the Federal law under which the responsibility is exer-
cised.’’. 
(b) CONFORMING AMENDMENT.—The analysis for chapter 3 of 
title 23, United States Code, is further amended by adding after 
the item relating to section 325 the following:
‘‘326. State assumption of responsibility for categorical exclusions.’’.
SEC. 6005. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT 
PROGRAM. 
(a) IN GENERAL.—Chapter 3 of title 23, United States Code, 
is further amended by inserting after section 326 the following:
H. R. 3—726
‘‘§ 327. Surface transportation project delivery pilot program 
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Secretary shall carry out a surface 
transportation project delivery pilot program (referred to in 
this section as the ‘program’). 
‘‘(2) ASSUMPTION OF RESPONSIBILITY.—
‘‘(A) IN GENERAL.—Subject to the other provisions of 
this section, with the written agreement of the Secretary 
and a State, which may be in the form of a memorandum 
of understanding, the Secretary may assign, and the State 
may assume, the responsibilities of the Secretary with 
respect to one or more highway projects within the State 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
‘‘(B) ADDITIONAL RESPONSIBILITY.—If a State assumes 
responsibility under subparagraph (A)—
‘‘(i) the Secretary may assign to the State, and 
the State may assume, all or part of the responsibilities 
of the Secretary for environmental review, consulta-
tion, or other action required under any Federal 
environmental law pertaining to the review or approval 
of a specific project; but 
‘‘(ii) the Secretary may not assign—
‘‘(I) responsibility for any conformity deter-
mination required under section 176 of the Clean 
Air Act (42 U.S.C. 7506); or 
‘‘(II) any responsibility imposed on the Sec-
retary by section 134 or 135. 
‘‘(C) PROCEDURAL AND SUBSTANTIVE REQUIREMENTS.—
A State shall assume responsibility under this section sub-
ject to the same procedural and substantive requirements 
as would apply if that responsibility were carried out by 
the Secretary. 
‘‘(D) FEDERAL RESPONSIBILITY.—Any responsibility of 
the Secretary not explicitly assumed by the State by written 
agreement under this section shall remain the responsi-
bility of the Secretary. 
‘‘(E) NO EFFECT ON AUTHORITY.—Nothing in this section 
preempts or interferes with any power, jurisdiction, respon-
sibility, or authority of an agency, other than the Depart-
ment of Transportation, under applicable law (including 
regulations) with respect to a project. 
‘‘(b) STATE PARTICIPATION.—
‘‘(1) NUMBER OF PARTICIPATING STATES.—The Secretary may 
permit not more than 5 States (including the States of Alaska, 
California, Ohio, Oklahoma, and Texas) to participate in the 
program. 
‘‘(2) APPLICATION.—Not later than 270 days after the date 
of enactment of this section, the Secretary shall promulgate 
regulations that establish requirements relating to information 
required to be contained in any application of a State to partici-
pate in the program, including, at a minimum—
‘‘(A) the projects or classes of projects for which the 
State anticipates exercising the authority that may be 
granted under the program;
H. R. 3—727
‘‘(B) verification of the financial resources necessary 
to carry out the authority that may be granted under 
the program; and 
‘‘(C) evidence of the notice and solicitation of public 
comment by the State relating to participation of the State 
in the program, including copies of comments received from 
that solicitation. 
‘‘(3) PUBLIC NOTICE.—
‘‘(A) IN GENERAL.—Each State that submits an applica-
tion under this subsection shall give notice of the intent 
of the State to participate in the program not later than 
30 days before the date of submission of the application. 
‘‘(B) METHOD OF NOTICE AND SOLICITATION.—The State 
shall provide notice and solicit public comment under this 
paragraph by publishing the complete application of the 
State in accordance with the appropriate public notice law 
of the State. 
‘‘(4) SELECTION CRITERIA.—The Secretary may approve the 
application of a State under this section only if—
‘‘(A) the regulatory requirements under paragraph (2) 
have been met; 
‘‘(B) the Secretary determines that the State has the 
capability, including financial and personnel, to assume 
the responsibility; and 
‘‘(C) the head of the State agency having primary juris-
diction over highway matters enters into a written agree-
ment with the Secretary described in subsection (c). 
‘‘(5) OTHER FEDERAL AGENCY VIEWS.—If a State applies 
to assume a responsibility of the Secretary that would have 
required the Secretary to consult with another Federal agency, 
the Secretary shall solicit the views of the Federal agency 
before approving the application. 
‘‘(c) WRITTEN AGREEMENT.—A written agreement under this 
section shall—
‘‘(1) be executed by the Governor or the top-ranking 
transportation official in the State who is charged with respon-
sibility for highway construction; 
‘‘(2) be in such form as the Secretary may prescribe; 
‘‘(3) provide that the State—
‘‘(A) agrees to assume all or part of the responsibilities 
of the Secretary described in subsection (a); 
‘‘(B) expressly consents, on behalf of the State, to accept 
the jurisdiction of the Federal courts for the compliance, 
discharge, and enforcement of any responsibility of the 
Secretary assumed by the State; 
‘‘(C) certifies that State laws (including regulations) 
are in effect that—
‘‘(i) authorize the State to take the actions nec-
essary to carry out the responsibilities being assumed; 
and 
‘‘(ii) are comparable to section 552 of title 5, 
including providing that any decision regarding the 
public availability of a document under those State 
laws is reviewable by a court of competent jurisdiction; 
and 
‘‘(D) agrees to maintain the financial resources nec-
essary to carry out the responsibilities being assumed.
H. R. 3—728
‘‘(d) JURISDICTION.—
‘‘(1) IN GENERAL.—The United States district courts shall 
have exclusive jurisdiction over any civil action against a State 
for failure to carry out any responsibility of the State under 
this section. 
‘‘(2) LEGAL STANDARDS AND REQUIREMENTS.—A civil action 
under paragraph (1) shall be governed by the legal standards 
and requirements that would apply in such a civil action against 
the Secretary had the Secretary taken the actions in question. 
‘‘(3) INTERVENTION.—The Secretary shall have the right 
to intervene in any action described in paragraph (1). 
‘‘(e) EFFECT OF ASSUMPTION OF RESPONSIBILITY.—A State that 
assumes responsibility under subsection (a)(2) shall be solely 
responsible and solely liable for carrying out, in lieu of the Sec-
retary, the responsibilities assumed under subsection (a)(2), until 
the program is terminated as provided in subsection (i). 
‘‘(f) LIMITATIONS ON AGREEMENTS.—Nothing in this section per-
mits a State to assume any rulemaking authority of the Secretary 
under any Federal law. 
‘‘(g) AUDITS.—
‘‘(1) IN GENERAL.—To ensure compliance by a State with 
any agreement of the State under subsection (c) (including 
compliance by the State with all Federal laws for which respon-
sibility is assumed under subsection (a)(2)), for each State 
participating in the program under this section, the Secretary 
shall conduct—
‘‘(A) semiannual audits during each of the first 2 years 
of State participation; and 
‘‘(B) annual audits during each subsequent year of 
State participation. 
‘‘(2) PUBLIC AVAILABILITY AND COMMENT.—
‘‘(A) IN
GENERAL.—An audit conducted under para-
graph (1) shall be provided to the public for comment. 
‘‘(B) RESPONSE.—Not later than 60 days after the date 
on which the period for public comment ends, the Secretary 
shall respond to public comments received under subpara-
graph (A). 
‘‘(h) REPORT TO CONGRESS.—The Secretary shall submit to Con-
gress an annual report that describes the administration of the 
program. 
‘‘(i) TERMINATION.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the program shall terminate on the date that is 6 years after 
the date of enactment of this section. 
‘‘(2) TERMINATION
BY
SECRETARY.—The Secretary may 
terminate the participation of any State in the program if—
‘‘(A) the Secretary determines that the State is not 
adequately carrying out the responsibilities assigned to 
the State; 
‘‘(B) the Secretary provides to the State—
‘‘(i) notification of the determination of noncompli-
ance; and 
‘‘(ii) a period of at least 30 days during which 
to take such corrective action as the Secretary deter-
mines is necessary to comply with the applicable agree-
ment; and