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(4) RETROFIT GRANTS.—The Administrator may
award grants for up to 100 percent of the retrofit
technologies and installation costs.
(5) REPLACEMENT GRANTS.—
(A) 
ELIGIBILITY
FOR
PERCENT
GRANTS.—The Administrator may award grants
for replacement of school buses in the amount of
up to 1⁄2 of the acquisition costs (including fuel-
ing infrastructure) for —
(i) clean school buses with engines
manufactured in model year 2005 or 2006
that emit not more than—
(I) 1.8 grams per brake horse-
power-hour of non-methane hydro-
carbons and oxides of nitrogen; and
(II) .01 grams per brake horse-
power-hour of particulate matter; or
(ii) clean school buses with engines
manufactured in model year 2007, 2008, or
2009 that satisfy regulatory requirements
established by the Administrator for emis-
sions of oxides of nitrogen and particulate
matter to be applicable for school buses
manufactured in model year 2010.
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(B) 
ELIGIBILITY
FOR
PERCENT
GRANTS.—The Administrator may award grants
for replacement of school buses in the amount of
up to 1⁄4 of the acquisition costs (including fuel-
ing infrastructure) for —
(i) clean school buses with engines
manufactured in model year 2005 or 2006
that emit not more than—
(I) 2.5 grams per brake horse-
power-hour of non-methane hydro-
carbons and oxides of nitrogen; and
(II) .01 grams per brake horse-
power-hour of particulate matter; or
(ii) clean school buses with engines
manufactured in model year 2007 or there-
after that satisfy regulatory requirements
established by the Administrator for emis-
sions of oxides of nitrogen and particulate
matter from school buses manufactured in
that model year.
(6) ULTRA-LOW SULFUR DIESEL FUEL.—
(A) IN GENERAL.—In the case of a grant re-
cipient receiving a grant for the acquisition of
ultra-low sulfur diesel fuel school buses with en-
gines manufactured in model year 2005 or 2006,
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the grant recipient shall provide, to the satisfac-
tion of the Administrator—
(i) documentation that diesel fuel con-
taining sulfur at not more than 15 parts
per million is available for carrying out the
purposes of the grant; and
(ii) a commitment by the applicant to
use that fuel in carrying out the purposes of
the grant.
(7) DEPLOYMENT AND DISTRIBUTION.—The Ad-
ministrator 
shall, 
to 
the 
maximum 
extent
practicable—
(A) achieve nationwide deployment of clean
school buses through the program under this sec-
tion; and
(B) ensure a broad geographic distribution
of grant awards, with no State receiving more
than 10 percent of the grant funding made avail-
able under this section during a fiscal year.
(8) ANNUAL REPORT.—
(A) IN GENERAL.—Not later than January
31 of each year, the Administrator shall submit
to Congress a report that—
(i) evaluates the implementation of this
section; and
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(ii) describes—
(I) the total number of grant ap-
plications received;
(II) the number and types of al-
ternative fuel school buses, ultra-low
sulfur diesel fuel school buses, and ret-
rofitted buses requested in grant appli-
cations;
(III) grants awarded and the cri-
teria used to select the grant recipients;
(IV) certified engine emission lev-
els of all buses purchased or retrofitted
under this section;
(V) an evaluation of the in-use
emission level of buses purchased or
retrofitted under this section; and
(VI) any other information the
Administrator considers appropriate.
(c) EDUCATION.—
(1) IN GENERAL.—Not later than 90 days after
the date of enactment of this Act, the Administrator
shall develop an education outreach program to pro-
mote and explain the grant program.
(2) COORDINATION WITH STAKEHOLDERS.—The
outreach program shall be designed and conducted in
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conjunction with national school bus transportation
associations and other stakeholders.
(3) 
COMPONENTS.—The 
outreach 
program
shall—
(A) inform potential grant recipients on the
process of applying for grants;
(B) describe the available technologies and
the benefits of the technologies;
(C) explain the benefits of participating in
the grant program; and
(D) include, as appropriate, information
from the annual report required under subsection
(b)(8).
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Administrator to carry
out this section, to remain available until expended—
(1) $55,000,000 for each of fiscal years 2006 and
2007; and
(2) such sums as are necessary for each of fiscal
years 2008, 2009, and 2010.
SEC. 1623. CONSERVE BY BICYCLING PROGRAM.
(a) DEFINITIONS.—In this section:
(1) PROGRAM.—The term ‘‘program’’ means the
Conserve by Bicycling Program established by sub-
section (b).
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(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(b) ESTABLISHMENT.—There is established within the
Department of Transportation a program to be known as
the ‘‘Conserve by Bicycling Program’’.
(c) PROJECTS.—
(1) IN GENERAL.—In carrying out the program,
the Secretary shall establish not more than 10 pilot
projects that are—
(A) dispersed geographically throughout the
United States; and
(B) designed to conserve energy resources by
encouraging the use of bicycles in place of motor
vehicles.
(2) REQUIREMENTS.—A pilot project described
in paragraph (1) shall—
(A) use education and marketing to convert
motor vehicle trips to bicycle trips;
(B) document project results and energy
savings (in estimated units of energy conserved);
(C) facilitate partnerships among interested
parties in at least 2 of the fields of—
(i) transportation;
(ii) law enforcement;
(iii) education;
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(iv) public health;
(v) environment; and
(vi) energy;
(D) maximize bicycle facility investments;
(E) demonstrate methods that may be used
in other regions of the United States; and
(F) facilitate the continuation of ongoing
programs that are sustained by local resources.
(3) COST SHARING.—At least 20 percent of the
cost of each pilot project described in paragraph (1)
shall be provided from State or local sources.
(d) ENERGY AND BICYCLING RESEARCH STUDY.—
(1) IN GENERAL.—Not later than 2 years after
the date of enactment of this Act, the Secretary shall
enter into a contract with the National Academy of
Sciences for, and the National Academy of Sciences
shall conduct and submit to Congress a report on, a
study on the feasibility of converting motor vehicle
trips to bicycle trips.
(2) COMPONENTS.—The study shall—
(A) document the results or progress of the
pilot projects under subsection (b);
(B) determine the type and duration of
motor vehicle trips that people in the United
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States may feasibly make by bicycle, taking into
consideration factors such as—
(i) weather;
(ii) land use and traffic patterns;
(iii) the carrying capacity of bicycles;
and
(iv) bicycle infrastructure;
(C) determine any energy savings that
would result from the conversion of motor vehicle
trips to bicycle trips;
(D) include a cost-benefit analysis of bicycle
infrastructure investments; and
(E) include a description of any factors
that would encourage more motor vehicle trips to
be replaced with bicycle trips.
Subtitle G—Operations
SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND
OPERATIONS.
(a) SURFACE
TRANSPORTATION
PROGRAM
ELIGI-
BILITY.—Section 133(b) of title 23, United States Code (as
amended by section 1601(a)(2)), is amended by adding at
the end the following:
‘‘(16) Regional transportation operations col-
laboration and coordination activities that are associ-
ated with regional improvements, such as traffic inci-
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dent management, technology deployment, emergency
management and response, traveler information, and
regional congestion relief.
‘‘(17) RUSH HOUR CONGESTION RELIEF.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a State may spend the funds appor-
tioned under this section to reduce traffic delays
caused by motor vehicle accidents and break-
downs on highways during peak driving times.
‘‘(B) USE OF FUNDS.—A State, metropoli-
tan planning organization, or local government
may use the funds under subparagraph (A)—
‘‘(i) to develop a region-wide coordi-
nated plan to mitigate traffic delays caused
by motor vehicle accidents and breakdowns;
‘‘(ii) to purchase or lease telecommuni-
cations equipment for first responders;
‘‘(iii) to purchase or lease towing and
recovery services;
‘‘(iv) to pay contractors for towing and
recovery;
‘‘(v) to rent vehicle storage areas adja-
cent to roadways;
‘‘(vi) to fund service patrols, equip-
ment, and operations;
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‘‘(vii) to purchase incident detection
equipment;
‘‘(viii) to carry out training.’’.
(b) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5) of
title 23, United States Code, is amended by inserting ‘‘im-
prove transportation systems management and operations,’’
after ‘‘intersections,’’.
(c) TRANSPORTATION SYSTEMS MANAGEMENT AND OP-
ERATIONS.—
(1) IN GENERAL.—Subchapter I of chapter 1 of
title 23, United States Code (as amended by section
1620(b)), is amended by adding at the end the fol-
lowing:
‘‘§ 168. Transportation systems management and oper-
ations
‘‘(a) IN GENERAL.—The Secretary shall carry out a
transportation systems management and operations pro-
gram to—
‘‘(1) ensure efficient and effective management
and operation of transportation systems through col-
laboration, coordination, and real-time information
sharing at a regional and Statewide level among—
‘‘(A) managers and operators of major
modes of transportation;
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‘‘(B) public safety officials; and
‘‘(C) the general public; and
‘‘(2) manage and operate transportation systems
in a coordinated manner to preserve the capacity and
maximize the performance of transportation facilities
for travelers and carriers.
‘‘(b) AUTHORIZED ACTIVITIES.—
‘‘(1) IN GENERAL.—In carrying out the program
under subsection (a), the Secretary may carry out ac-
tivities to—
‘‘(A) encourage managers and operators of
major modes of transportation, public safety offi-
cials, and transportation planners in urbanized
areas that are responsible for conducting the
day-to-day management, operations, public safe-
ty, and planning of transportation facilities and
services to collaborate on and coordinate, on a
regional level and in a continuous and sustained
manner, improved transportation systems man-
agement and operations; and
‘‘(B) encourage States to—
‘‘(i) establish a system of basic real-
time monitoring for the surface transpor-
tation system; and
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‘‘(ii) provide the means to share the
data gathered under clause (i) among—
‘‘(I) highway, transit, and public
safety agencies;
‘‘(II) 
jurisdictions 
(including
States, cities, counties, and metropoli-
tan planning organizations);
‘‘(III) private-sector entities; and
‘‘(IV) the general public.
‘‘(2) ACTIVITIES.—Activities to be carried out
under paragraph (1) include—
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared by
all transportation and public safety participants
with respect to the manner in which the trans-
portation systems of the region should be man-
aged, operated, and measured;
‘‘(B) the sharing of information among op-
erators, service providers, public safety officials,
and the general public; and
‘‘(C) guiding, in a regionally-coordinated
manner and in a manner consistent with and
integrated into the metropolitan and statewide
transportation planning processes and regional
intelligent transportation system architecture,
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the implementation of regional transportation
system management and operations initiatives,
including—
‘‘(i) emergency evacuation and re-
sponse;
‘‘(ii) traffic incident management;
‘‘(iii) technology deployment; and
‘‘(iv) traveler information systems de-
livery.
‘‘(c) COOPERATION.—In carrying out the program
under subsection (a), the Secretary may assist and cooper-
ate with other Federal agencies, State and local govern-
ments, metropolitan planning organizations, private indus-
try, and other interested parties to improve regional col-
laboration and real-time information sharing between man-
agers and operators of major modes of transportation, pub-
lic safety officials, emergency managers, and the general
public to increase the security, safety, and reliability of
Federal-aid highways.
‘‘(d) GUIDANCE; REGULATIONS.—
‘‘(1) IN GENERAL.—In carrying out the program
under subsection (a), the Secretary may issue guid-
ance or promulgate regulations for the procurement of
transportation system management and operations
facilities, equipment, and services, including—
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‘‘(A) equipment procured in preparation for
natural disasters, disasters caused by human ac-
tivity, and emergencies;
‘‘(B) system hardware;
‘‘(C) software; and
‘‘(D) software integration services.
‘‘(2) CONSIDERATIONS.—In developing the guid-
ance or regulations under paragraph (1), the Sec-
retary may consider innovative procurement methods
that support the timely and streamlined execution of
transportation system management and operations
programs and projects.
‘‘(3) FINANCIAL
ASSISTANCE.—The Secretary
may authorize the use of funds made available under
section 104(b)(3) to provide assistance for regional
operations collaboration and coordination activities
that are associated with regional improvements, such
as—
‘‘(A) traffic incident management;
‘‘(B) technology deployment;
‘‘(C) emergency management and response;
‘‘(D) traveler information; and
‘‘(E) congestion relief.’’.
(2) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 1 of title 23, United States
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Code (as amended by section 1620(c)), is amended by
adding at the end:
‘‘168. Transportation systems management and operations.’’.
SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM.
(a) IN GENERAL.—Subchapter I of chapter 1 of title
23, United States Code (as amended by section 1701(c)(1)),
is amended by adding at the end the following:
‘‘§ 169. Real-time system management information
program
‘‘(a) IN GENERAL.—The Secretary shall carry out a
real-time system management information program to—
‘‘(1) provide a nationwide system of basic real-
time information for managing and operating the
surface transportation system;
‘‘(2)(A) identify long-range real-time highway
and transit monitoring needs; and
‘‘(B) develop plans and strategies for meeting
those needs;
‘‘(3) provide the capability and means to share
the basic real-time information with State and local
governments and the traveling public; and
‘‘(4) provide the nationwide capability to mon-
itor, in real-time, the traffic and travel conditions of
major highways in the United States, and to share
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that information with State and local governments
and the traveling public, to—
‘‘(A) improve the security of the surface
transportation system;
‘‘(B) address congestion problems;
‘‘(C) support improved response to weather
events; and
‘‘(D) facilitate the distribution of national
and regional traveler information.
‘‘(b) DATA EXCHANGE FORMATS.—Not later than 1
year after the date of enactment of this section, the Sec-
retary shall establish data exchange formats to ensure that
the data provided by highway and transit monitoring sys-
tems (including statewide incident reporting systems) can
readily be exchanged between jurisdictions to facilitate the
nationwide availability of information on traffic and travel
conditions.
‘‘(c) STATEWIDE INCIDENT REPORTING SYSTEM.—Not
later than 2 years after the date of enactment of this section,
or not later than 5 years after the date of enactment of this
section if the Secretary determines that adequate real-time
communications capability will not be available within 2
years after the date of enactment of this section, each State
shall establish a statewide incident reporting system to fa-
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cilitate the real-time electronic reporting of highway and
transit incidents to a central location for use in—
‘‘(1) monitoring an incident;
‘‘(2) providing accurate traveler information on
the incident; and
‘‘(3) responding to the incident as appropriate.
‘‘(d) REGIONAL ITS ARCHITECTURE.—
‘‘(1) IN GENERAL.—In developing or updating
regional intelligent transportation system architec-
tures under section 940.9 of title 23, Code of Federal
Regulations (or any successor regulation), States and
local governments shall address—
‘‘(A) the real-time highway and transit in-
formation needs of the State or local government,
including coverage, monitoring systems, data fu-
sion and archiving, and methods of exchanging
or sharing information; and
‘‘(B) the systems needed to meet those needs.
‘‘(2) DATA EXCHANGE FORMATS.—In developing
or updating regional intelligent transportation system
architectures, States and local governments are en-
couraged to incorporate the data exchange formats de-
veloped by the Secretary under subsection (b) to en-
sure that the data provided by highway and transit
monitoring systems can readily be—
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‘‘(A) exchanged between jurisdictions; and
‘‘(B) shared with the traveling public.
‘‘(e) ELIGIBLE FUNDING.—Subject to project approval
by the Secretary, a State may—
‘‘(1) use funds available to the State under sec-
tion 505(a) to carry out activities relating to the
planning of real-time monitoring elements; and
‘‘(2) use funds apportioned to the State under
paragraphs (1) and (3) of section 104(b) to carry out
activities relating to the planning and deployment of
real-time monitoring elements.’’.
(b) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter 1 of title 23, United States Code (as
amended by section 1701(c)(2)), is amended adding at the
end the following:
‘‘169. Real-time system management information program.’’.
SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN
SERVICES.
Section 112(b)(2) of title 23, United States Code, is
amended—
(1) in subparagraph (A), by striking ‘‘title 40’’
and all that follows through the period and inserting
‘‘title 40.’’;
(2) by striking subparagraph (B);
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(3) by redesignating subparagraphs (C) through
(F) as subparagraphs (B) through (E), respectively;
and
(4) by striking subparagraph (G).
SEC. 1704. DESIGNATION OF TRANSPORTATION MANAGE-
MENT AREAS.
(a) FUNDING.—Section 134(d)(3)(C)(ii) of title 23,
United States Code, is amended by striking subclause (II)
and inserting the following:
‘‘(II) FUNDING.—In addition to
funds made available to the metropoli-
tan planning organization for the Lake
Tahoe Region under this title and
chapter 53 of title 49, 1 percent of all
funds distributed under section 202
shall be used to carry out the transpor-
tation planning process for the Lake
Tahoe region under this subpara-
graph.’’.
(b) SPECIAL DESIGNATION.—For the purpose of any
applicable program under title 23, United States Code, the
city of Norman, Oklahoma, shall be considered to be part
of the Oklahoma City urbanized area.
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Subtitle H—Federal-Aid
Stewardship
SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.
Section 103(c)(4)(B) of title 23, United States Code,
is amended—
(1) in clause (ii), by striking ‘‘12’’ and inserting
‘‘20’’; and
(2) in clause (iii)—
(A) in subclause (I), by striking ‘‘in the
agreement between the Secretary and the State
or States’’; and
(B) by adding at the end the following:
‘‘(III) EXISTING AGREEMENTS.—
An agreement described in clause (ii)
that is entered into before the date of
enactment of this subparagraph shall
be deemed to include the 20-year time
limitation described in that clause, re-
gardless of any earlier construction
completion date in the agreement.’’.
SEC. 1802. STEWARDSHIP AND OVERSIGHT.
(a) IN GENERAL.—Section 106 of title 23, United
States Code, is amended—
(1) by striking subsection (e) and inserting the
following:
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‘‘(e) VALUE ENGINEERING ANALYSIS.—
‘‘(1) DEFINITION OF VALUE ENGINEERING ANAL-
YSIS.—
‘‘(A) IN GENERAL.—In this subsection, the
term ‘value engineering analysis’ means a sys-
tematic process of review and analysis of a
project, during the concept and design phases, by
a multidisciplined team of persons not involved
in the project, that is conducted to provide rec-
ommendations such as those described in sub-
paragraph (B) for—
‘‘(i) providing the needed functions
safely, reliably, and at the lowest overall
cost;
‘‘(ii) improving the value and quality
of the project; and
‘‘(iii) reducing the time to complete the
project.
‘‘(B) INCLUSIONS.—The recommendations
referred to in subparagraph (A) include, with re-
spect to a project—
‘‘(i) combining or eliminating other-
wise inefficient use of costly parts of the
original proposed design for the project; and
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‘‘(ii) completely redesigning the project
using different technologies, materials, or
methods so as to accomplish the original
purpose of the project.
‘‘(2) ANALYSIS.—The State shall provide a value
engineering analysis or other cost-reduction analysis
for—
‘‘(A) each project on the Federal-Aid System
with an estimated total cost of $25,000,000 or
more;
‘‘(B) a bridge project with an estimated
total cost of $20,000,000 or more; and
‘‘(C) any other project the Secretary deter-
mines to be appropriate.
‘‘(3) MAJOR PROJECTS.—The Secretary may re-
quire more than 1 analysis described in paragraph
(2) for a major project described in subsection (h).
‘‘(4) REQUIREMENTS.—Analyses described in
paragraph (1) for a bridge project shall—
‘‘(A) include bridge substructure require-
ments based on construction material; and
‘‘(B) be evaluated—
‘‘(i) on engineering and economic
bases, taking into consideration acceptable
designs for bridges; and
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‘‘(ii) using an analysis of life-cycle
costs and duration of project construction.’’;
and
(2) by striking subsections (g) and (h) and in-
serting the following:
‘‘(g) OVERSIGHT PROGRAM.—
‘‘(1) PROGRAM.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish an oversight program to monitor the ef-
fective and efficient use of funds made available
under this title.
‘‘(B) MINIMUM REQUIREMENTS.—At a min-
imum, the program shall monitor and respond to
all areas relating to financial integrity and
project delivery.
‘‘(2) FINANCIAL INTEGRITY.—
‘‘(A) FINANCIAL MANAGEMENT SYSTEMS.—
‘‘(i) IN GENERAL.—The Secretary shall
perform annual reviews of the financial
management systems of State transpor-
tation departments that affect projects ap-
proved under subsection (a).
‘‘(ii) REVIEW AREAS.—In carrying out
clause (i), the Secretary shall use risk as-
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sessment procedures to identify areas to be
reviewed.
‘‘(B) 
PROJECT
COSTS.—The 
Secretary
shall—
‘‘(i) develop minimum standards for
estimating project costs; and
‘‘(ii) periodically evaluate practices of
the States for—
‘‘(I) estimating project costs;
‘‘(II) awarding contracts; and
‘‘(III) reducing project costs.
‘‘(C) RESPONSIBILITY OF THE STATES.—
‘‘(i) IN GENERAL.—Each State shall be
responsible for ensuring that subrecipients
of Federal funds within the State under this
section have—
‘‘(I) sufficient accounting controls
to properly manage the Federal funds;
and
‘‘(II) adequate project delivery
systems for projects approved under
this section.
‘‘(ii) REVIEW
BY
SECRETARY.—The
Secretary shall periodically review moni-
toring by the States of those subrecipients.
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‘‘(3) PROJECT DELIVERY.—The Secretary shall—
‘‘(A) perform annual reviews of the project
delivery system of each State, including analysis
of 1 or more activities that are involved in the
life cycle of a project; and
‘‘(B) employ risk assessment procedures to
identify areas to be reviewed.
‘‘(4) SPECIFIC OVERSIGHT RESPONSIBILITIES.—
Nothing in this section discharges or otherwise affects
any oversight responsibility of the Secretary—
‘‘(A) specifically provided for under this
title or other Federal law; or
‘‘(B) for the design and construction of all
Appalachian development highways under sec-
tion 14501 of title 40 or section 170 of this title.
‘‘(h) MAJOR PROJECTS.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, a recipient of Federal finan-
cial assistance for a project under this title with an
estimated total cost of $1,000,000,000 or more, and
recipients for such other projects as may be identified
by the Secretary, shall submit to the Secretary for
each project—
‘‘(A) a project management plan; and
‘‘(B) an annual financial plan.
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‘‘(2) PROJECT
MANAGEMENT
PLAN.—A project
management plan shall document—
‘‘(A) the procedures and processes that are
in effect to provide timely information to the
project decisionmakers to effectively manage the
scope, costs, schedules, and quality of, and the
Federal requirements applicable to, the project;
and
‘‘(B) the role of the agency leadership and
management team in the delivery of the project.
‘‘(3) FINANCIAL PLAN.—A financial plan shall—
‘‘(A) be based on detailed estimates of the
cost to complete the project; and
‘‘(B) provide for the annual submission of
updates to the Secretary that are based on rea-
sonable assumptions, as determined by the Sec-
retary, of future increases in the cost to complete
the project.
‘‘(i) OTHER PROJECTS.—A recipient of Federal finan-
cial assistance for a project under this title that receives
$100,000,000 or more in Federal assistance for the project,
and that is not covered by subsection (h), shall prepare, and
make available to the Secretary at the request of the Sec-
retary, an annual financial plan for the project.’’.
(b) CONFORMING AMENDMENTS.—