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(2) by redesignating paragraphs (3) through 
(7) as paragraphs (4) through (8), respectively; 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘(3) FISCAL YEAR 2005 AND THEREAFTER.—On 
October 1, 2004, and each October 1 thereafter, if 
a State has not enacted or is not enforcing a repeat 
intoxicated driver law, the Secretary shall transfer 
from the funds apportioned to the State on that date 
under each of paragraphs (1), (3), and (4) of section 
104(b) an amount equal to 3 percent of the funds 
apportioned to the State under such paragraphs for 
fiscal year 2003 to be used or directed as described 
in subparagraph (A) or (B) of paragraph (1).’; 
(4) in paragraph (5) (as so redesignated) by 
striking ‘paragraph (3)’ and inserting ‘paragraph 
(4)’; 
(5) in paragraphs (4), (5), and (6) (as so redes-
ignated) by striking ‘paragraph (1) or (2)’ and in-
serting ‘paragraph (1), (2), or (3)’; and 
(6) in paragraph (7)(B) (as so redesignated)—
(A) by striking ‘The amount’ and inserting 
‘For fiscal year 2005 and each fiscal year there-
after, the amount’; and
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(B) in subclauses (I) and (II) of clause (ii) 
by striking ‘the fiscal year’ and inserting ‘fiscal 
year 2003’. 
SEC. 1405. SAFETY INCENTIVE GRANTS FOR USE OF SEAT 
BELTS. 
Section 157(g)(1) of title 23, United States Code, is 
amended by striking ‘for fiscal year 2004’ and all that 
follows through ‘2005’ and inserting ‘and for each of fiscal 
years 2003, 2004, and 2005’. 
SEC. 1406. SAFETY INCENTIVES TO PREVENT OPERATION 
OF MOTOR VEHICLES BY INTOXICATED PER-
SONS. 
(a) CODIFICATION
OF PENALTY.—Section 163 of 
title 23, United States Code, is amended—
(1) by redesignating subsection (e) as sub-
section (f); and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘(e) PENALTY.—
‘(1) IN GENERAL.—On October 1, 2003, and 
October 1 of each fiscal year thereafter, if a State 
has not enacted or is not enforcing a law described 
in subsection (a), the Secretary shall withhold from 
amounts apportioned to the State on that date 
under each of paragraphs (1), (3), and (4) of section
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104(b) an amount equal to the amount specified in 
paragraph (2). 
‘(2) AMOUNT TO BE WITHHELD.—If a State is 
subject to a penalty under paragraph (1), the Sec-
retary shall withhold for a fiscal year from the ap-
portionments of the State described in paragraph 
(1) an amount equal to a percentage of the funds 
apportioned to the State under paragraphs (1), (3), 
and (4) of section 104(b) for fiscal year 2003. The 
percentage shall be as follows: 
‘(A) For fiscal year 2004, 2 percent. 
‘(B) For fiscal year 2005, 4 percent. 
‘(C) For fiscal year 2006, 6 percent. 
‘(D) For fiscal year 2007, and each fiscal 
year thereafter, 8 percent. 
‘(3) FAILURE TO COMPLY.—If, within 4 years 
from the date that an apportionment for a State is 
withheld in accordance with this subsection, the Sec-
retary determines that the State has enacted and is 
enforcing a law described in subsection (a), the ap-
portionment of the State shall be increased by an 
amount equal to the amount withheld. If, at the end 
of such 4-year period, any State has not enacted or 
is not enforcing a law described in subsection (a)
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any amounts so withheld from such State shall 
lapse.’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
163(f)(1) of such title, as redesignated by subsection 
(a)(1) of this section, is amended by striking ‘for fiscal 
year 2004’ and all that follows through ‘2005’ and insert-
ing ‘and for each of fiscal years 2004 and 2005’. 
(c) REPEAL.—Section 351 of the Department of 
Transportation and Related Agencies Appropriations Act, 
2001 (23 U.S.C. 163 note; 114 Stat. 1356A–34) is re-
pealed. 
SEC. 1407. REPEAT OFFENDERS FOR DRIVING WHILE IN-
TOXICATED. 
Section 164(a)(5)(A) of title 23, United States Code, 
is amended to read as follows: 
‘(A) receive (i) a driver’s license suspension 
for not less than 1 year, or (ii) a combination 
of suspension of all driving privileges of an indi-
vidual for the first 45 days of the suspension 
period followed by a reinstatement of limited 
driving privileges for the propose of getting to 
and from work, school, or an alcohol treatment 
program if an ignition interlock device is in-
stalled on each of the motor vehicles owned or 
operated, or both, by the individual;’.
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SEC. 1408. REPAIR OR REPLACEMENT OF HIGHWAY FEA-
TURES ON NATIONAL HIGHWAY SYSTEM. 
(a) RULEMAKING PROCEEDING.—The Secretary shall 
conduct a rulemaking proceeding to determine the appro-
priate conditions under which a State when choosing to 
repair or replace damaged highway features on the Na-
tional Highway System with State funds (rather than with 
available Federal financial assistance) should be required 
to repair or replace such features with highway features 
that have been tested, evaluated, and found to be accept-
able under the guidelines contained in the report of the 
Transportation Research Board of the National Research 
Council entitled ‘NCHRP Report 350-Recommended Pro-
cedures for the Safety Performance Evaluation of High-
way Features’. 
(b) MATTERS TO BE CONSIDERED.—The rulemaking 
proceeding shall cover those highway features that are cov-
ered by the guidelines referred to in subsection (a). The 
conditions to be considered by the Secretary in the rule-
making proceeding shall include types of highway features, 
cost-effectiveness, and practicality of replacement with 
highway features that have been found to be acceptable 
under such guidelines. 
(c) REGULATIONS.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall issue 
regulations regarding the conditions under which States
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when choosing to repair or replace damaged highway fea-
tures described in subsection (a) will be required to repair 
or replace such features with highway features that have 
been tested, evaluated, and found to be acceptable as de-
scribed in subsection (a). 
Subtitle E—Construction and 
Contract Efficiencies 
SEC. 1501. DESIGN–BUILD. 
(a) QUALIFIED PROJECTS.—Section 112(b)(3)(C) of 
title 23, United States Code, is amended to read as fol-
lows: 
‘(C) QUALIFIED
PROJECTS.—A qualified 
project referred to in subparagraph (A) is a 
project under this chapter for which the Sec-
retary has approved the use of design-build con-
tracting under criteria specified in regulations 
issued by the Secretary.’. 
(b) 
EXPERIMENTAL
PROCUREMENT.—Section 
112(b)(3) of such title is further amended—
(1) by redesigning subparagraph (D) as sub-
paragraph (G); and 
(2) by inserting after subparagraph (C) the fol-
lowing: 
‘(D) EXPERIMENTAL PROCUREMENT.—As 
part of any experimental program carried out
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under this section, the Secretary shall evaluate 
the use of procurement procedures under this 
paragraph where subjective evaluation criteria 
account for the majority of the selection deter-
mination. 
‘(E) LIMITATION
ON
STATUTORY
CON-
STRUCTION.—Nothing in this section shall be 
construed as effecting the authority to carry out 
any experimental program concerning design-
build contracting that is being carried out by 
the Secretary on the date of enactment of this 
subparagraph. 
‘(F) REPORT.—Not later than 3 years 
after the date of enactment of this subpara-
graph, the Secretary shall transmit to Congress 
a report on the effectiveness of design-build 
contracting procedures in which the majority of 
the selection determinations are made based on 
subjective criteria in accordance with subpara-
graph (D).’. 
SEC. 1502. WARRANTY HIGHWAY CONSTRUCTION PROJECT 
PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish and 
implement a pilot program designed to encourage States
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to incorporate warranties in the letting of contracts for 
highway construction projects. 
(b) MAXIMUM NUMBER OF PROJECTS.—The Sec-
retary may allow not more than 15 projects a year to be 
carried out under the pilot program. 
(c) FEDERAL SHARE.—The Federal share of the 
costs of a project under the pilot program may not exceed 
90 percent. 
(d) MINIMUM PROJECT COST.—The estimated total 
cost of a project to be carried out under the pilot program 
must be greater than $15,000,000. 
(e) SELECTION PROCESS.—In the selection process 
for the pilot program, the Secretary shall select, to the 
extent possible, projects from several different regions of 
the United States in order to demonstrate the effects that 
different climates and traffic patterns have on warranty 
highway construction projects. 
(f) RULEMAKING.—
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall issue a rule to implement the pilot program. 
The rule shall include the following factors for eligi-
bility of a highway construction project to be in-
cluded in the program:
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(A) A requirement that the contract for 
the project must include a long-term limited 
warranty that is of a duration sufficient to en-
sure that—
(i) the cost to the State of the project 
that will be carried out is less than the es-
timated cost to construct the project with-
out the warranty plus the estimated costs 
that would be incurred by the State and 
that would otherwise be covered during the 
proposed warranty period if a warranty 
were in effect; and 
(ii) the estimated cost to road users 
during the warranty period is less than 
such estimated cost without a warranty. 
(B) In determining the sufficient duration 
of a long-term limited warranty under subpara-
graph (A), the Secretary shall establish sepa-
rate sufficient durations for different types of 
projects, such as initial construction, pavement 
resurfacing and rehabilitation, and pavement 
markings. 
(C) A requirement that the limited war-
ranty must address, at a minimum—
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(i) the responsibilities of the warranty 
provider; 
(ii) the responsibilities of the Depart-
ment of Transportation; 
(iii) the terms of the warranty, includ-
ing duration and, if applicable, traffic vol-
umes and vehicle classification; and 
(iv) performance criteria to be met to 
determine if maintenance is required. 
(2) FACTORS
TO
CONSIDER.—In issuing the 
rule, the Secretary may consider the following fac-
tors as requirements for the warranty contract for 
eligibility under the pilot program: 
(A) A plan to account for inflation during 
the warranty period. 
(B) The frequency of performance assess-
ments performed. 
(C) The response time for repairs. 
(D) A plan for emergency repairs. 
(E) Clearly set out limits of liability under 
the warranty, if any. 
(F) Dispute resolution provisions. 
(G) A severability provision. 
(H) Other provisions the Secretary con-
siders necessary for carrying out the program.
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(g) SAVINGS.—Section 112 of title 23, United States 
Code, shall apply to the projects carried out under this 
section unless the Secretary determines that applying such 
section to such projects is inconsistent with the provisions 
of this section. 
(h) REPORTS.—Not later than 5 years after the date 
of enactment of this Act and every year thereafter, the 
Secretary shall transmit to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Environment and Public Works of 
the Senate a report outlining activities carried out under 
the program and the results of the program. 
SEC. 1503. PRIVATE INVESTMENT STUDY. 
(a) STUDY.—Not later than 6 months after the date 
of enactment of this Act, the Secretary shall enter into 
an agreement with the National Academy of Sciences to 
conduct a comprehensive study of private investment in 
surface transportation infrastructure. 
(b) MATTERS TO BE EVALUATED.—Under the agree-
ment, the National Academy of Sciences shall evaluate the 
advantages and disadvantages of private investment in 
surface transportation infrastructure and the impact of 
such investment on the ability of State and local authori-
ties to use innovative financing, including—
(1) preconstruction funding requirements;
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(2) integration of private investment in the 
transportation planning process; 
(3) use of toll revenues by State and local au-
thorities; 
(4) use of toll credits by State and local au-
thorities; 
(5) requirements for debt financing instru-
ments, reimbursable expenses, and conditions on 
payments; 
(6) limitation on fees charged at federally fund-
ed fringe and corridor parking facilities; 
(7) revenues needed to provide a reasonable 
rate of return to private investors; 
(8) costs to users of facilities due to imposition 
of tolls; 
(9) sales-in-lease-out arrangement of transpor-
tation assets; and 
(10) such other matters as the Secretary con-
siders appropriate. 
(c) REPORT.—
(1) TO SECRETARY.—Under the agreement, the 
National Academy of Sciences shall submit to the 
Secretary a report on the results of the study by 
such date as the Secretary may require.
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(2) TO CONGRESS.—Not later than January 1, 
2007, the Secretary shall transmit to the Committee 
on Transportation and Infrastructure of the House 
of Representatives and the Committee on Environ-
ment and Public Works of the Senate a copy of the 
report of the National Academy of Sciences, together 
with such recommendations as the Secretary con-
siders appropriate. 
SEC. 1504. HIGHWAYS FOR LIFE PILOT PROGRAM. 
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish 
and implement a pilot program to be known as the 
‘Highways for LIFE pilot program’. 
(2) PURPOSE.—The purpose of the pilot pro-
gram shall be to advance longer-lasting highways 
using innovative technologies and practices to ac-
complish the fast construction of efficient and safe 
highways and bridges. 
(3) OBJECTIVES.—Under the pilot program, 
the Secretary shall provide leadership and incentives 
to demonstrate and promote state-of-the-art tech-
nologies, elevated performance standards, and new 
business practices in the highway construction proc-
ess that result in improved safety, faster construc-
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tion, reduced congestion from construction, and im-
proved quality and user satisfaction. 
(b) PROJECTS.—
(1) APPLICATIONS.—To be eligible to partici-
pate in the pilot program, a State shall submit to 
the Secretary an application that is in such form 
and contains such information as the Secretary re-
quires. Each application shall contain a description 
of proposed projects to be carried by the State under 
the pilot program. 
(2) ELIGIBILITY.—A proposed project shall be 
eligible for assistance under the pilot program if the 
project—
(A) constructs, reconstructs, or rehabili-
tates a route or connection on a Federal-aid 
highway eligible for assistance under chapter 1 
of title 23, United States Code; 
(B) uses innovative technologies, manufac-
turing processes, financing, or contracting 
methods that improve safety, reduce congestion 
due to construction, and improve quality; and 
(C) meets additional criteria as determined 
by the Secretary. 
(3) PROJECT
PROPOSAL.—A project proposal 
submitted under paragraph (1) shall contain—
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(A) an identification and description of the 
projects to be delivered; 
(B) a description of how the projects will 
result in improved safety, faster construction, 
reduced congestion due to construction, user 
satisfaction, and improved quality; 
(C) a description of the innovative tech-
nologies, manufacturing processes, financing, 
and contracting methods that will be used for 
the proposed projects; and 
(D) such other information as the Sec-
retary may require. 
(4) 
SELECTION
CRITERIA.—In 
selecting 
projects for approval under this section, the Sec-
retary shall ensure that the projects provide an eval-
uation of a broad range of technologies in a wide va-
riety of project types and shall give priority to the 
projects that—
(A) address achieving the Highways for 
LIFE performance standards for quality, safe-
ty, and speed of construction; 
(B) deliver and deploy innovative tech-
nologies, manufacturing processes, financing, 
contracting practices, and performance meas-
ures that will demonstrate substantial improve-
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ments in safety, congestion, quality, and cost-
effectiveness; 
(C) include innovation that will lead to 
change in the administration of the State’s 
transportation program to more quickly con-
struct long-lasting, high-quality, cost-effective 
projects that improve safety and reduce conges-
tion; 
(D) are or will be ready for construction 
within 12 months of approval of the project 
proposal; and 
(E) meet such other criteria as the Sec-
retary determines appropriate. 
(5) FINANCIAL ASSISTANCE.—
(A) FUNDS
FOR
HIGHWAYS
FOR
LIFE 
PROJECTS.—Out of amounts made available to 
carry out this section for a fiscal year, the Sec-
retary may allocate to a State up to 20 percent, 
but not more than $15,000,000, of the total 
cost of a project approved under this section. 
Notwithstanding any other provision of law, 
funds allocated to a State under this subpara-
graph may be applied to the non-Federal share 
of the cost of construction of a project under 
title 23, United States Code.
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(B) USE
OF
APPORTIONED
FUNDS.—A 
State may obligate not more than 10 percent of 
the amount apportioned to the State under 1 or 
more of paragraphs (1), (2), (3), and (4) of sec-
tion 104(b) of title 23, United States Code, for 
a fiscal year for projects approved under this 
section. 
(C) INCREASED
FEDERAL
SHARE.—Not-
withstanding sections 120 and 129 of title 23, 
United States Code, the Federal share payable 
on account of any project constructed with Fed-
eral funds allocated under this section, or ap-
portioned under section 104(b) of such title, to 
a State under such title and approved under 
this section may amount to 100 percent of the 
cost of construction of such project. 
(D) LIMITATION
ON
STATUTORY
CON-
STRUCTION.—Except as provided in subpara-
graph (C), nothing in this subsection shall be 
construed as altering or otherwise affecting the 
applicability of the requirements of chapter 1 of 
title 23, United States Code (including require-
ments relating to the eligibility of a project for 
assistance under the program and the location 
of the project), to amounts apportioned to a
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State for a program under section 104(b) that 
are obligated by the State for projects approved 
under this subsection. 
(6) PROJECT
SELECTIONS.—In the period of 
fiscal years 2005 through 2009, the Secretary shall 
approve at least one project in each State for par-
ticipation in the pilot program and for financial as-
sistance under paragraph (5) if the State submits an 
application and the project meets the eligibility re-
quirements and selection criteria under this sub-
section. 
(c) TECHNOLOGY PARTNERSHIPS.—
(1) IN
GENERAL.—The Secretary may make 
grants or enter into cooperative agreements or other 
transactions to foster the development, improvement, 
and creation of innovative technologies and facilities 
to improve safety, enhance the speed of highway 
construction, and improve the quality and durability 
of highways. 
(2) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out under this sub-
section shall not exceed 80 percent. 
(d) TECHNOLOGY TRANSFER
AND INFORMATION 
DISSEMINATION.—
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(1) IN GENERAL.—The Secretary shall conduct 
a Highways for LIFE technology transfer program. 
(2) AVAILABILITY OF INFORMATION.—The Sec-
retary shall ensure that the information and tech-
nology used, developed, or deployed under this sub-
section is made available to the transportation com-
munity and the public. 
(e) STAKEHOLDER INPUT AND INVOLVEMENT.—The 
Secretary shall establish a process for stakeholder input 
and involvement in the development, implementation, and 
evaluation of the Highways for LIFE pilot program. The 
process may include participation by representatives of 
State departments of transportation and other interested 
persons. 
(f) PROJECT MONITORING AND EVALUATION.—The 
Secretary shall monitor and evaluate the effectiveness of 
any activity carried out under this section. 
(g) CONTRACT AUTHORITY.—Funds authorized to be 
appropriated 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. 
(h) STATE DEFINED.—In this section, the term 
‘State’ has the meaning such term has under section 
101(a) of title 23, United States Code.
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Subtitle F—Finance 
SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE 
AND INNOVATION ACT. 
(a) DEFINITIONS.—Section 181 of title 23, United 
States Code, is amended—
(1) in paragraph (3)—
(A) by striking ‘category’; and 
(B) by striking ‘offered into the capital 
markets’; 
(2) by striking paragraph (7); 
(3) by redesignating paragraphs (8) through 
(15) as paragraphs (7) through (14), respectively; 
(4) by striking the period at the end of para-
graph (8)(B) (as so redesignated) and inserting a 
semicolon; and 
(5) in paragraph (10) (as so redesignated) by 
striking ‘bond’ and inserting ‘credit’. 
(b) 
DETERMINATION
OF
ELIGIBILITY.—Section 
182(a) of such title is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘(1) INCLUSION
IN
TRANSPORTATION
PLANS 
AND PROGRAMS.—The project shall satisfy the appli-
cable planning and programming requirements of 
sections 134 and 135 at such time as an agreement
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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.’; 
(2) 
in 
paragraph 
(3)(A)(i) 
by 
striking 
‘$100,000,000’ and inserting ‘$50,000,000’; 
(3) 
in 
paragraph 
(3)(B) 
by 
striking 
‘$30,000,000’ and inserting ‘$15,000,000’; and 
(4) in paragraph (4)—
(A) by striking ‘Project financing’ and in-
serting ‘The Federal credit instrument’; and 
(B) by inserting before the period at the 
end ‘that also secure the project obligations’. 
(c) PROJECT SELECTION.—Section 182(b) of such 
title is amended—
(1) in paragraph (1) by striking ‘criteria’ the 
second place it appears and inserting ‘requirements’; 
and 
(2) in paragraph (2)(B) by inserting ‘, which 
may be the Federal credit instrument,’ after ‘obliga-
tions’. 
(d) SECURED LOANS.—
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(1) AGREEMENTS.—Section 183(a)(1) of such 
title is amended—
(A) in each of subparagraphs (A) and (B) 
by inserting ‘of any project selected under sec-
tion 602’ after ‘costs’; and 
(B) by striking the semicolon at the end of 
subparagraph (B) and all that follows through 
‘under section 602’. 
(2) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—Section 183(a)(4) of such title is amend-
ed—
(A) by striking ‘The funding’ and inserting 
‘The execution’; and 
(B) by striking the first comma and all 
that follows through ‘1 rating agency’. 
(3) TERMS AND LIMITATIONS.—Section 183(b) 
of such title is amended—
(A) in paragraph (2) by inserting ‘the less-
er of’ after ‘exceed’; 
(B) in paragraph (2) by inserting ‘or the 
amount of the senior project obligations’ after 
‘costs’; 
(C) in paragraph (3)(A)(i) by inserting 
‘that also secure the senior project obligations’ 
after ‘sources’; and
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(D) in paragraph (4) by striking ‘market-
able’. 
(4) REPAYMENT.—Section 183(c) is amended—
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4) and 
(5) as paragraphs (3) and (4), respectively. 
(e) LINES OF CREDIT.—
(1) TERMS AND LIMITATIONS.—Section 184(b) 
of such title is amended—
(A) in paragraph (3)—
(i) by striking the first comma; and 
(ii) by striking ‘any debt service re-
serve fund, and any other available reserve’ 
and inserting ‘but not including reasonably 
required financing reserves’; 
(B) in paragraph (4)—
(i) by striking ‘marketable’; 
(ii) by striking ‘on which’ and insert-
ing ‘of execution of’; and 
(iii) by striking ‘is obligated’ and in-
serting ‘agreement’; and 
(C) in paragraph (5)(A)(i) by inserting 
‘that also secure the senior project obligations’ 
after ‘sources’; and