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‘‘(3) AVAILABILITY.—The sum deducted under
paragraph (1) shall remain available until ex-
pended.’’.
SEC. 1202. REAL PROPERTY ACQUISITION AND CORRIDOR
PRESERVATION.
(a) ADVANCE ACQUISITION OF REAL PROPERTY.—Sec-
tion 108 of title 23, United States Code, is amended—
(1) by striking the section heading and inserting
the following:
‘‘§ 108. Advance acquisition of real property’’;
and
(2) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—
‘‘(1) AVAILABILITY OF FUNDS.—For the purpose
of facilitating the timely and economical acquisition
of real property for a transportation improvement eli-
gible for funding under this title, the Secretary, upon
the request of a State, may make available, for the ac-
quisition of real property, such funds apportioned to
the State as may be expended on the transportation
improvement, under such rules and regulations as the
Secretary may issue.
‘‘(2) CONSTRUCTION.—The agreement between
the Secretary and the State for the reimbursement of
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the cost of the real property shall provide for the ac-
tual construction of the transportation improvement
within a period not to exceed 20 years following the
fiscal year for which the request is made, unless the
Secretary determines that a longer period is reason-
able.’’.
(b) CREDIT FOR ACQUIRED LANDS.—Section 323(b) of
title 23, United States Code, is amended—
(1) in the subsection heading, by striking ‘‘DO-
NATED’’ and inserting ‘‘ACQUIRED’’;
(2) by striking paragraphs (1) and (2) and in-
serting the following:
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this title, the State share of the cost of
a project with respect to which Federal assistance is
provided from the Highway Trust Fund (other than
the Mass Transit Account) may be credited in an
amount equal to the fair market value of any land
that—
‘‘(A) is obtained by the State or a unit of
local government in the State, without violation
of Federal law;
‘‘(B) is incorporated into the project;
‘‘(C) is not land described in section 138;
and
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‘‘(D) does not influence the environmental
assessment of the project, including—
‘‘(i) the decision as to the need to con-
struct the project;
‘‘(ii) the consideration of alternatives;
and
‘‘(iii) the selection of a specific loca-
tion.
‘‘(2) 
ESTABLISHMENT
OF
FAIR
MARKET
VALUE.—The fair market value of land incorporated
into a project and credited under paragraph (1) shall
be established in the manner determined by the Sec-
retary, except that—
‘‘(A) the fair market value shall not include
any increase or decrease in the value of donated
property caused by the project; and
‘‘(B) the fair market value of donated land
shall be established as of the earlier of—
‘‘(i) the date on which the donation be-
comes effective; or
‘‘(ii) the date on which equitable title
to the land vests in the State.’’;
(3) in paragraph (3), by striking ‘‘agency of a
Federal, State, or local government’’ and inserting
‘‘agency of the Federal Government’’;
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(4) in paragraph (4), by striking ‘‘to which the
donation is applied’’; and
(5) by redesignating paragraph (4) as para-
graph (3).
(c) CREDITING
OF CONTRIBUTIONS
BY UNITS
OF
LOCAL GOVERNMENT TOWARD THE STATE SHARE.—Sec-
tion 323 of title 23, United States Code, is amended by add-
ing at the end the following:
‘‘(e) CREDITING
OF CONTRIBUTIONS
BY UNITS
OF
LOCAL GOVERNMENT TOWARD THE STATE SHARE.—A con-
tribution by a unit of local government of real property,
funds, material, or a service in connection with a project
eligible for assistance under this title shall be credited
against the State share of the project at the fair market
value of the real property, funds, material, or service.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 323 of title 23, United States Code,
is amended by striking the section heading and in-
serting the following:
‘‘§ 323. Donations and credits’’.
(2) The analysis for chapter 1 of title 23, United
States Code, is amended—
(A) by striking the item relating to section
108 and inserting the following:
‘‘108. Advance acquisition of real property.’’;
and
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(B) by striking the item relating to section
323 and inserting the following:
‘‘323. Donations and credits.’’.
SEC. 1203. AVAILABILITY OF FUNDS.
Section 118 of title 23, United States Code, is amended
by striking subsection (e) and inserting the following:
‘‘(e) AVAILABILITY OF FUNDS.—
‘‘(1) IN
GENERAL.—Any Federal-aid highway
funds released by the final payment on a project, or
by the modification of a project agreement, shall be
credited to the same program funding category for
which the funds were previously apportioned and
shall be immediately available for obligation.
‘‘(2) TRANSFER OF INTERSTATE CONSTRUCTION
FUNDS.—Any Federal-aid highway funds apportioned
to a State under section 104(b)(5)(A) (as in effect on
the day before the date of enactment of this para-
graph) and credited under paragraph (1) may be
transferred by the Secretary in accordance with sec-
tion 103(d).’’.
SEC. 1204. PAYMENTS TO STATES FOR CONSTRUCTION.
Section 121 of title 23, United States Code, is amend-
ed—
(1) in subsection (a), by striking the second and
third sentences and inserting the following: ‘‘The pay-
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ments may also be made for the value of such mate-
rials as—
‘‘(1) have been stockpiled in the vicinity of the
construction in conformity to plans and specifications
for the projects; and
‘‘(2) are not in the vicinity of the construction
if the Secretary determines that because of required
fabrication at an off-site location the materials can-
not be stockpiled in the vicinity.’’;
(2) by striking subsection (b) and inserting the
following:
‘‘(b) PROJECT AGREEMENTS.—
‘‘(1) PAYMENTS.—A payment under this chapter
may be made only for a project covered by a project
agreement.
‘‘(2) SOURCE OF PAYMENTS.—After completion
of a project in accordance with the project agreement,
a State shall be entitled to payment, out of the appro-
priate sums apportioned or allocated to the State, of
the unpaid balance of the Federal share of the cost of
the project.’’;
(3) by striking subsections (c) and (d); and
(4) by redesignating subsection (e) as subsection
(c).
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SEC. 1205. PROCEEDS FROM THE SALE OR LEASE OF REAL
PROPERTY.
(a) IN GENERAL.—Section 156 of title 23, United
States Code, is amended to read as follows:
‘‘§ 156. Proceeds from the sale or lease of real property
‘‘(a) MINIMUM CHARGE.—Subject to section 142(f), a
State shall charge, at a minimum, fair market value for
the sale, use, lease, or lease renewal (other than for utility
use and occupancy or for a transportation project eligible
for assistance under this title) of real property acquired
with Federal assistance made available from the Highway
Trust Fund (other than the Mass Transit Account).
‘‘(b) EXCEPTIONS.—The Secretary may grant an ex-
ception to the requirement of subsection (a) for a social,
environmental, or economic purpose.
‘‘(c) USE OF FEDERAL SHARE OF INCOME.—The Fed-
eral share of net income from the revenues obtained by a
State under subsection (a) shall be used by the State for
projects eligible under this title.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code, is amended by
striking the item relating to section 156 and inserting the
following:
‘‘156. Proceeds from the sale or lease of real property.’’.
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SEC. 1206. METRIC CONVERSION AT STATE OPTION.
Section 205(c)(2) of the National Highway System
Designation Act of 1995 (23 U.S.C. 109 note; 109 Stat. 577)
is amended by striking ‘‘Before September 30, 2000, the’’
and inserting ‘‘The’’.
SEC. 1207. REPORT ON OBLIGATIONS.
Section 104(m) of title 23, United States Code (as re-
designated by section 1113(c)(1)), is amended—
(1) by inserting ‘‘REPORT TO CONGRESS.—’’ be-
fore ‘‘The Secretary’’;
(2) by striking ‘‘not later than’’ and all that fol-
lows through ‘‘a report’’ and inserting ‘‘a report for
each fiscal year’’;
(3) in paragraph (1), by striking ‘‘preceding cal-
endar month’’ and inserting ‘‘preceding fiscal year’’;
(4) by striking paragraph (2);
(5) in paragraph (3), by striking ‘‘such preced-
ing month’’ and inserting ‘‘that preceding fiscal
year’’; and
(6) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
SEC. 1208. TERMINATIONS.
(a) RIGHT-OF-WAY REVOLVING FUND.—Section 108 of
title 23, United States Code, is amended by striking sub-
section (c) and inserting the following:
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‘‘(c) TERMINATION
OF RIGHT-OF-WAY REVOLVING
FUND.—
‘‘(1) IN GENERAL.—Funds apportioned and ad-
vanced to a State by the Secretary from the right-of-
way revolving fund established by this section prior
to the date of enactment of the Intermodal Surface
Transportation Efficiency Act of 1998 shall remain
available to the State for use on the projects for which
the funds were advanced for a period of 20 years from
the date on which the funds were advanced.
‘‘(2) CREDIT TO HIGHWAY TRUST FUND.—With
respect to a project for which funds have been ad-
vanced from the right-of-way revolving fund, upon the
termination of the 20-year period referred to in para-
graph (1), when actual construction is commenced, or
upon approval by the Secretary of the plans, speci-
fications, and estimates for the actual construction of
the project on the right-of-way, whichever occurs
first—
‘‘(A) the Highway Trust Fund shall be cred-
ited with an amount equal to the Federal share
of the funds advanced, as provided in section
120, out of any Federal-aid highway funds ap-
portioned to the State in which the project is lo-
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cated and available for obligation for projects of
the type funded; and
‘‘(B) the State shall reimburse the Secretary
in an amount equal to the non-Federal share of
the funds advanced for deposit in, and credit to,
the Highway Trust Fund.’’.
(b) PILOT TOLL COLLECTION PROGRAM.—Section 129
of title 23, United States Code, is amended by striking sub-
section (d).
(c) NATIONAL RECREATIONAL TRAILS ADVISORY COM-
MITTEE.—As soon as practicable after the date of enactment
of this Act, the Secretary shall take such action as is nec-
essary for the termination of the National Recreational
Trails Advisory Committee established by section 1303 of
the Intermodal Surface Transportation Efficiency Act of
1991 (16 U.S.C. 1262) (as in effect on the day before the
date of enactment of this Act).
(d) CONGRESSIONAL BRIDGE COMMISSIONS.—Public
Law 87–441 (76 Stat. 59) is repealed.
SEC. 1209. INTERSTATE MAINTENANCE.
(a) INTERSTATE FUNDS.—Section 119 of title 23,
United States Code, is amended—
(1) in subsection (a), by striking the second sen-
tence;
(2) by striking subsection (d); and
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(3) by striking subsection (f) and inserting the
following:
‘‘(f) TRANSFERABILITY OF FUNDS.—
‘‘(1) UNCONDITIONAL.—A State may transfer an
amount not to exceed 30 percent of the sums appor-
tioned to the State under subparagraphs (A) and (B)
of section 104(b)(1) to the apportionment of the State
under paragraphs (1)(C) and (3) of section 104(b).
‘‘(2) UPON ACCEPTANCE OF CERTIFICATION.—If
a State certifies to the Secretary that any part of the
sums apportioned to the State under subparagraphs
(A) and (B) of section 104(b)(1) is in excess of the
needs of the State for resurfacing, restoring, rehabili-
tating, or reconstructing routes and bridges on the
Interstate System in the State and that the State is
adequately maintaining the routes and bridges, and
the Secretary accepts the certification, the State may
transfer, in addition to the amount authorized to be
transferred under paragraph (1), an amount not to
exceed 20 percent of the sums apportioned to the State
under subparagraphs (A) and (B) of section 104(b)(1)
to the apportionment of the State under paragraphs
(1)(C) and (3) of section 104(b).’’.
(b) ELIGIBILITY.—Section 119 of title 23, United
States Code, is amended—
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(1) in the first sentence of subsection (a), by
striking ‘‘and rehabilitating’’ and inserting ‘‘, reha-
bilitating, and reconstructing’’;
(2) by striking subsections (b), (c), (e), and (g);
(3) by inserting after subsection (a) the follow-
ing:
‘‘(b) ELIGIBLE ACTIVITIES.—
‘‘(1) IN GENERAL.—A State—
‘‘(A) may use funds apportioned under sub-
paragraph (A) or (B) of section 104(b)(1) for re-
surfacing, restoring, rehabilitating, and recon-
structing routes on the Interstate System, includ-
ing—
‘‘(i) resurfacing, restoring, rehabilitat-
ing, and reconstructing bridges, inter-
changes, and overcrossings;
‘‘(ii) acquiring rights-of-way; and
‘‘(iii) intelligent transportation system
capital improvements that are infrastruc-
ture-based to the extent that they improve
the performance of the Interstate System;
but
‘‘(B) may not use the funds for construction
of new travel lanes other than high-occupancy
vehicle lanes or auxiliary lanes.
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‘‘(2) EXPANSION OF CAPACITY.—
‘‘(A) USING
TRANSFERRED
FUNDS.—Not-
withstanding paragraph (1), funds transferred
under subsection (c)(1) may be used for construc-
tion to provide for expansion of the capacity of
an Interstate System highway (including a
bridge).
‘‘(B) USING FUNDS NOT TRANSFERRED.—
‘‘(i) IN GENERAL.—In lieu of transfer-
ring funds under subsection (c)(1) and
using the transferred funds for the purpose
described in subparagraph (A), a State may
use an amount of the sums apportioned to
the State under subparagraph (A) or (B) of
section 104(b)(1) for the purpose described
in subparagraph (A).
‘‘(ii) LIMITATION.—The sum of the
amount used under clause (i) and any
amount transferred under subsection (c)(1)
by a State may not exceed 30 percent of the
sums apportioned to the State under sub-
paragraphs 
(A) 
and 
(B) 
of 
section
104(b)(1).’’; and
(4) by redesignating subsection (f) as subsection
(c).
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(c) CONFORMING AMENDMENTS.—
(1) Section 119(a) of title 23, United States
Code, is amended in the first sentence by striking ‘‘;
except that the Secretary may only approve a project
pursuant to this subsection on a toll road if such road
is subject to a Secretarial agreement provided for in
subsection (e)’’.
(2) Section 1009(c)(2) of the Intermodal Surface
Transportation Efficiency Act of 1991 (23 U.S.C. 119
note; 105 Stat. 1934) is amended by striking ‘‘section
119(f)(1)’’ and inserting ‘‘section 119(c)(1)’’.
SEC. 1210. ENGINEERING COST REIMBURSEMENT.
Section 102(b) of title 23, United States Code, is
amended in the first sentence by inserting before the period
at the end the following: ‘‘unless, before the end of the 10-
year period, the State requests a longer period for com-
mencement of the construction or acquisition and the Sec-
retary determines that the request is reasonable’’.
CHAPTER 2—PROJECT APPROVAL
SEC. 1221. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.
Section 104 of title 23, United States Code (as amend-
ed by section 1118), is amended by inserting after sub-
section (k) the following:
‘‘(l) TRANSFER OF HIGHWAY AND TRANSIT FUNDS.—
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‘‘(1) TRANSFER
OF
HIGHWAY
FUNDS.—Funds
made available under this title and transferred for
transit projects shall be 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.
‘‘(2) TRANSFER
OF
TRANSIT
FUNDS.—Funds
made available under chapter 53 of title 49 and
transferred for highway projects shall be administered
by the Secretary in accordance with this title, except
that the provisions of that chapter relating to the non-
Federal share shall apply to the transferred funds.
‘‘(3) TRANSFER
TO
AMTRAK
AND
PUBLICLY-
OWNED PASSENGER RAIL LINES.—Funds made avail-
able under this title or chapter 53 of title 49 and
transferred to the National Railroad Passenger Cor-
poration or to any publicly-owned intercity or intra-
city passenger rail line shall be administered by the
Secretary in accordance with subtitle V of title 49, ex-
cept that the provisions of this title or chapter 53 of
title 49, as applicable, relating to the non-Federal
share shall apply to the transferred funds.
‘‘(4) TRANSFER OF OBLIGATION AUTHORITY.—
Obligation authority provided for projects described
in paragraphs (1) through (3) shall be transferred in
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the same manner and amount as the funds for the
projects are transferred.’’.
SEC. 1222. PROJECT APPROVAL AND OVERSIGHT.
(a) IN GENERAL.—Section 106 of title 23, United
States Code, is amended—
(1) by striking the section heading and inserting
the following:
‘‘§ 106. Project approval and oversight’’;
(2) by redesignating subsections (e) and (f) as
subsections (g) and (h), respectively;
(3) by striking subsections (a) through (d) and
inserting the following:
‘‘(a) IN GENERAL.—Except as otherwise provided in
this section, the State transportation department shall sub-
mit to the Secretary for approval such plans, specifications,
and estimates for each proposed project as the Secretary
may require. The Secretary shall act upon such plans, spec-
ifications, and estimates as soon as practicable after they
have been submitted, and shall enter into a formal project
agreement with the State transportation department for-
malizing the conditions of the project approval. The execu-
tion of such project agreement shall be deemed a contractual
obligation of the Federal Government for the payment of
its proportional contribution thereto. In taking such action,
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the Secretary shall be guided by the provisions of section
109 of this title.
‘‘(b) PROJECT AGREEMENT.—The project agreement
shall make provision for State funds required for the State’s
pro rata share of the cost of construction of the project and
for the maintenance of the project after completion of con-
struction. The Secretary may rely upon representations
made by the State transportation department with respect
to the arrangements or agreements made by the State trans-
portation department and appropriate local officials where
a part of the project is to be constructed at the expense of,
or in cooperation with, local subdivisions of the State.
‘‘(c) SPECIAL RULES FOR PROJECT OVERSIGHT.—
‘‘(1) NHS PROJECTS.—Except as otherwise pro-
vided in subsection (d) of this section, the Secretary
may discharge to the State any of the Secretary’s re-
sponsibilities for the design, plans, specifications, esti-
mates, contract awards, and inspection of projects
under this title on the National Highway System. Be-
fore discharging responsibilities to the State, the Sec-
retary shall reach agreement with the State as to the
extent to which the State may assume the responsibil-
ities of the Secretary under this subsection. The Sec-
retary may not assume any greater responsibility
than the Secretary is permitted under this title as of
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September 30, 1997, except upon agreement by the
Secretary and the State.
‘‘(2) NON-NHS
PROJECTS.—For all projects
under this title that are off the National Highway
System, the State may request that the Secretary no
longer review and approve the design, plans, speci-
fications, estimates, contract awards, and inspection
of projects under this title. After receiving any such
request, the Secretary shall undertake project review
only as requested by the State.
‘‘(d) RESPONSIBILITIES OF THE SECRETARY.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
nothing in this section, section 133, or section 149
shall affect or discharge any responsibility or obliga-
tion of the Secretary under any Federal law other
than this title.
‘‘(2) LIMITATION.—Any responsibility or obliga-
tion of the Secretary under sections 113 and 114 of
this title shall not be affected and may not be dis-
charged under this section, section 133, or section
149.
‘‘(e) VALUE ENGINEERING ANALYSIS.—In such cases
as the Secretary determines advisable, plans, specifications,
and estimates for proposed projects on any Federal-aid
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highway shall be accompanied by a value engineering or
other cost reduction analysis.
‘‘(f) FINANCIAL PLAN.—The Secretary shall require a
financial plan to be prepared for any project with an esti-
mated total cost of $1,000,000,000 or more.’’.
(b) STANDARDS.—
(1) ELIMINATION OF GUIDELINES AND ANNUAL
CERTIFICATION REQUIREMENTS.—Section 109 of title
23, United States Code, is amended—
(A) by striking subsection (m); and
(B) 
by 
redesignating 
subsections 
(n)
through (q) as subsections (m) through (p), re-
spectively.
(2) SAFETY
STANDARDS.—Section 109 of title
23, United States Code (as amended by paragraph
(1)), is amended by adding at the end the following:
‘‘(q) PHASE CONSTRUCTION.—Safety considerations
for a project under this title may be met by phase construc-
tion.’’.
(c) PROGRAMS; PROJECT
AGREEMENTS; CERTIFI-
CATION ACCEPTANCE.—Sections 110 and 117 of title 23,
United States Code, are repealed.
(d) CONFORMING AMENDMENTS.—
(1) The analysis for chapter 1 of title 23 is
amended—
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(A) by striking the item relating to section
106 and inserting the following:
‘‘106. Project approval and oversight.’’;
and
(B) by striking the items relating to sections
110 and 117.
(2) Section 101(a) of title 23, United States
Code, is amended in the undesignated paragraph de-
fining ‘‘project agreement’’ by striking ‘‘the provisions
of subsection (a) of section 110 of this title’’ and in-
serting ‘‘section 106’’.
(3) Section 114(a) of title 23, United States
Code, is amended in the second sentence by striking
‘‘section 117 of this title’’ and inserting ‘‘section 106’’.
SEC. 1223. SURFACE TRANSPORTATION PROGRAM.
(a) TRANSPORTATION ENHANCEMENT ACTIVITIES.—
Section 133 of title 23, United States Code, is amended—
(1) in subsection (d)—
(A) in paragraph (2), by striking ‘‘10’’ and
inserting ‘‘8’’; and
(B) in the first sentence of paragraph
(3)(A), by striking ‘‘80’’ and inserting ‘‘82’’; and
(2) in subsection (e)—
(A) in paragraph (3)(B)(i), by striking ‘‘if
the Secretary’’ and all that follows through ‘‘ac-
tivities’’; and
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(B) in paragraph (5), by adding at the end
the following:
‘‘(C) INNOVATIVE FINANCING.—
‘‘(i) IN
GENERAL.—For each fiscal
year, the average annual non-Federal share
of the total cost of all projects to carry out
transportation enhancement activities in a
State shall be not less than the non-Federal
share authorized for the State under section
120(b).
‘‘(ii) EXCEPTION.—Subject to clause
(i), notwithstanding section 120, in the case
of projects to carry out transportation en-
hancement activities—
‘‘(I) funds from other Federal
agencies, and other contributions that
the Secretary determines are of value,
may be credited toward the non-Fed-
eral share of project costs;
‘‘(II) the non-Federal share may
be calculated on a project, multiple-
project, or program basis; and
‘‘(III) the Federal share of the cost
of an individual project subject to sub-
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clause (I) or (II) may be equal to 100
percent.’’.
(b) PROGRAM APPROVAL.—Section 133(e) of title 23,
United States Code, is amended by striking paragraph (2)
and inserting the following:
‘‘(2) PROGRAM APPROVAL.—
‘‘(A) SUBMISSION
OF
PROJECT
AGREE-
MENT.—For each fiscal year, each State shall
submit a project agreement that—
‘‘(i) certifies that the State will meet
all the requirements of this section; and
‘‘(ii) notifies the Secretary of the
amount of obligations needed to carry out
the program under this section.
‘‘(B) REQUEST
FOR
ADJUSTMENTS
OF
AMOUNTS.—As necessary, each State shall re-
quest from the Secretary adjustments to the
amount of obligations referred to in subpara-
graph (A)(ii).
‘‘(C) EFFECT OF APPROVAL BY THE SEC-
RETARY.—Approval by the Secretary of a project
agreement under subparagraph (A) shall be
deemed a contractual obligation of the United
States to pay surface transportation program
funds made available under this title.’’.
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(c) PAYMENTS.—Section 133(e)(3)(A) of title 23,
United States Code, is amended by striking the second sen-
tence.
(d) DEFINITION OF TRANSPORTATION ENHANCEMENT
ACTIVITIES.—Section 101(a) of title 23, United States
Code, is amended in the undesignated paragraph defining
‘‘transportation enhancement activities’’ by striking ‘‘scenic
or historic highway programs,’’ and inserting ‘‘scenic or
historic highway programs (including the provision of tour-
ist and welcome center facilities),’’.
SEC. 1224. DESIGN-BUILD CONTRACTING.
(a) AUTHORITY.—Section 112(b) of title 23, United
States Code, is amended—
(1) in the first sentence of paragraph (1), by
striking ‘‘paragraph (2)’’ and inserting ‘‘paragraphs
(2) and (3)’’;
(2) in paragraph (2)(A), by striking ‘‘Each’’ and
inserting ‘‘Subject to paragraph (3), each’’; and
(3) by adding at the end the following:
‘‘(3) DESIGN-BUILD CONTRACTING.—
‘‘(A) IN GENERAL.—A State transportation
department may award a contract for the design
and construction of a qualified project described
in subparagraph (B) using competitive bidding
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procedures approved by the Secretary in accord-
ance with subparagraph (C).
‘‘(B) QUALIFIED
PROJECTS.—A qualified
project referred to in subparagraph (A) is a
project under this chapter that involves installa-
tion of an intelligent transportation system or
that consists of a usable project segment and for
which—
‘‘(i) the Secretary has approved the use
of design-build contracting described in sub-
paragraph (A) under criteria specified in
regulations promulgated by the Secretary;
and
‘‘(ii) the total costs are estimated to ex-
ceed—
‘‘(I) in the case of a project that
involves installation of an intelligent
transportation system, $5,000,000; and
‘‘(II) in the case of a usable
project segment, $50,000,000.
‘‘(C) PROCEDURES
THAT
MAY
BE
AP-
PROVED.—Under subparagraph (A), the Sec-
retary may approve, for use by a State, only
procedures that consist of—
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‘‘(i) formal design-build contracting
procedures specified in a State statute; or
‘‘(ii) in the case of a State that does
not have a statute described in clause (i),
the design-build selection procedures author-
ized under section 303M of the Federal
Property and Administrative Services Act
of 1949 (41 U.S.C. 253m).’’.
(b) COMPETITIVE BIDDING DEFINED.—Section 112 of
title 23, United States Code, is amended by striking sub-
section (f) and inserting the following:
‘‘(f) COMPETITIVE BIDDING DEFINED.—In this sec-
tion, the term ‘competitive bidding’ means the procedures
used to award contracts for engineering and design services
under subsection (b)(2) and design-build contracts under
subsection (b)(3).’’.
(c) REGULATIONS.—
(1) IN GENERAL.—Not later than the effective
date specified in subsection (e), the Secretary shall
promulgate regulations to carry out the amendments
made by this section.
(2) CONTENTS.—The regulations shall—
(A) identify the criteria to be used by the
Secretary in approving the use by a State trans-
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portation department of design-build contract-
ing; and
(B) establish the procedures to be followed
by a State transportation department for obtain-
ing the Secretary’s approval of the use of design-
build contracting by the department and the
competitive bidding procedures used by the de-
partment.
(d) EFFECT ON EXPERIMENTAL PROGRAM.—Nothing
in this section or the amendments made by this section af-
fects the authority to carry out, or any project carried out
under, any experimental program concerning design-build
contracting that is being carried out by the Secretary as
of the date of enactment of this Act.
(e) 
EFFECTIVE
DATE
FOR
AMENDMENTS.—The
amendments made by this section take effect 2 years after
the date of enactment of this Act.
SEC. 1225. INTEGRATED DECISIONMAKING PROCESS.
(a) IN GENERAL.—Subchapter III of chapter 3 of title
49, United States Code, is amended by adding at the end
the following:
‘‘§ 354. Integrated decisionmaking process
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) INTEGRATED DECISIONMAKING PROCESS.—
The term ‘integrated decisionmaking process’ means
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the integrated decisionmaking process established with
respect to a surface transportation project under sub-
section (b).
‘‘(2) NEPA PROCESS.—The term ‘NEPA process’
means the process of complying with the requirements
of the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) with respect to a surface trans-
portation project.
‘‘(3) SECRETARY.—The term ‘Secretary’ means
the Secretary of Transportation.
‘‘(4) SURFACE TRANSPORTATION PROJECT.—The
term ‘surface transportation project’ means—
‘‘(A) a highway construction project that is
subject to the approval of the Secretary under
title 23; and
‘‘(B) a capital project (as defined in section
5302(a)(1)).
‘‘(5) CONCURRENT PROCESSING.—The term ‘con-
current processing’ means to the fullest extent prac-
ticable, and to the extent otherwise required, agencies
shall prepare environmental impact statements and
environmental assessments concurrently with and in-
tegrated with environmental analyses and related sur-
veys and studies required by the Fish and Wildlife
Coordination Act (16 U.S.C. 661 et seq.), the Na-
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tional Historic Preservation Act of 1966 (16 U.S.C.
470 et seq.), the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.) and other environmental review
laws and executive orders.
‘‘(b) ESTABLISHMENT
OF INTEGRATED DECISION-
MAKING
PROCESSES
FOR
SURFACE
TRANSPORTATION
PROJECTS.—The Secretary shall—
‘‘(1) establish an integrated decisionmaking
process for surface transportation projects that des-
ignates major decision points likely to have signifi-
cant environmental effects and conflicts; and
‘‘(2) integrate the requirements of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) for surface transportation projects at the earliest
possible time, including, to the extent appropriate, at
the planning stage with the agreement of the State
transportation agencies and the cooperating agencies.
‘‘(c) INTEGRATED DECISIONMAKING GOALS.—The in-
tegrated decisionmaking process for surface transportation
projects should, to the maximum extent practicable, accom-
plish the following major goals:
‘‘(1) Integrate the NEPA process for surface
transportation projects at the earliest possible time.
‘‘(2) Integrate all applicable Federal, State, trib-
al, and local permitting requirements.
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‘‘(3) Integrate national transportation, social,
safety, economic, and environmental goals with State,
tribal, and local land use and growth management
initiatives, economic development and transportation
initiatives.
‘‘(4) Consolidate Federal, State, tribal, and local
decisionmaking to achieve the best overall public in-
terest according to an agreed schedule.
‘‘(d) STREAMLINING.—
‘‘(1) AVOIDANCE
OF
DELAYS, PREVENTION
OF
CONFLICTS, AND ELIMINATION OF UNNECESSARY DU-
PLICATION.—The Secretary shall design the integrated
decisionmaking process to avoid delays in decision-
making, prevent conflicts between cooperating agen-
cies and members of the public, and eliminate unnec-
essary duplication of review and decisionmaking re-
lating to surface transportation projects.
‘‘(2) INTEGRATION; COMPREHENSIVE PROCESS.—
The NEPA process—
‘‘(A) shall be integrated for surface trans-
portation projects by Federal, State, tribal, and
local transportation agencies; and
‘‘(B) serve as a comprehensive decision-
making process.
‘‘(3) OTHER REQUIREMENTS.—
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‘‘(A) IN GENERAL.—The Secretary shall—
‘‘(i) establish a concurrent transpor-
tation 
and 
environmental 
coordination
process to reduce paperwork, combine re-
view documents, and eliminate duplicative
reviews;
‘‘(ii) develop interagency agreements to
streamline and improve interagency coordi-
nation and processing time;
‘‘(iii) 
apply 
strategic 
and 
pro-
grammatic approaches to better integrate
and expedite the NEPA process and trans-
portation decisionmaking; and
‘‘(iv) ensure, in appropriate cases, by
conducting concurrent reviews whenever
possible, that any analyses and reviews con-
ducted by the Secretary consider the needs
of other reviewing agencies.
‘‘(B) TIME SCHEDULES.—To comply with
subparagraph (A)(ii), time schedules shall be
consistent with sections 1501.8 and 1506.10 of
title 40, Code of Federal Regulations (or any
successor regulations).
‘‘(4) CONCURRENT PROCESSING.—
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‘‘(A) IN
GENERAL.—The integrated deci-
sionmaking process shall, to the extent prac-
ticable, include a procedure to provide for con-
current processing of all Federal, State, tribal,
and local reviews and decisions emanating from
those reviews.
‘‘(B) INCONSISTENCY
WITH
OTHER
RE-
QUIREMENTS.—Subparagraph (A) does not re-
quire concurrent review if concurrent review
would be inconsistent with other statutory or
regulatory requirements.
‘‘(e) INTERAGENCY COOPERATION.—
‘‘(1) LEAD
AND
COOPERATING
AGENCY
CON-
CEPTS.—The lead and cooperating agency concepts of
section 1501 of title 40, Code of Federal Regulations
(or any successor regulation), shall be considered es-
sential elements to ensure integration of transpor-
tation decisionmaking.
‘‘(2) RESPONSIBILITIES.—The Secretary shall—
‘‘(A) not later than 60 days after the date
on which a surface transportation project is se-
lected for study by a State, identify each Federal
agency that may be required to participate in
the integrated decisionmaking process relating to
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‘‘(G) jointly, with the cooperating agencies,
host public meetings and other community par-
ticipation processes; and
‘‘(H) ensure that the NEPA process and
documentation provide all necessary information
for the cooperating agency to—
‘‘(i) discharge the responsibilities of the
cooperating agency under the National En-
vironmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and other law; and
‘‘(ii) take action on approvals, permits,
licenses, and clearances.
‘‘(f) ENHANCED
SCOPING
PROCESS.—During the
scoping process for a surface transportation project, in ad-
dition to other statutory and regulatory requirements, the
Secretary shall, to the extent practicable—
‘‘(1) provide the public with clearly understand-
able milestones that occur during an integrated deci-
sionmaking process;
‘‘(2) ensure that all agencies with jurisdiction by
law or with special expertise have sufficient informa-
tion and data to discharge their responsibilities;
‘‘(3) ensure that all agencies with jurisdiction by
law or with special expertise, and the public, are in-
vited to participate in the initial scoping process;
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‘‘(4) coordinate with other agencies to ensure
that the agencies provide to the Secretary, not later
than 30 days after the first interagency scoping meet-
ing, any preliminary concerns about how the pro-
posed project may affect matters within their jurisdic-
tion or special expertise based on information avail-
able at the time of the scoping meeting; and
‘‘(5) in cooperation with all cooperating agen-
cies, develop a schedule for conducting all necessary
environmental and other review processes and assure
early consideration of alternatives to a proposed
project, including alternatives that address transpor-
tation demand consistent with section 134(i)(3) of
title 23, United States Code.
‘‘(g) USE OF TITLE 23 FUNDS.—
‘‘(1) USE BY STATES.—A State may use funds
made available under section 104(b) or 105 of title 23
or section 1102(c) of the Intermodal Surface Trans-
portation Efficiency Act of 1998 to provide resources
to Federal or State agencies involved in the review or
permitting process for a surface transportation
project in order to meet a time schedule established
under this section.
‘‘(2) AMOUNT.—Funds may be provided under
paragraph (1) in the amount by which the cost to
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complete a environmental review in accordance with
a time schedule established under this section exceeds
the cost that would be incurred if there were no such
time schedule.
‘‘(3) NOT FINAL AGENCY ACTION.—The provision
of funds under paragraph (1) does not constitute a
final agency action.
‘‘(h) STATE ROLE.—
‘‘(1) IN GENERAL.—For any project eligible for
assistance under chapter 1 of title 23, a State may
require, by law or agreement that has been developed
with public involvement coordinating with all related
State agencies, that all State agencies that—
‘‘(A) have jurisdiction by Federal or State
law over environmental, growth management, or
land-use related issues that may be affected by a
surface transportation project; or
‘‘(B) have responsibility for issuing any en-
vironment related reviews, analyses, opinions, or
determinations;
be subject to the coordinated environmental review
process provided under this section in issuing any
analyses or approvals or taking any other action re-
lating to the project.
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‘‘(2) ALL AGENCIES.—If a State requires that
any State agency participate in a coordinated envi-
ronmental review process, the State shall require all
affected State agencies to participate.
‘‘(i) EARLY ACTION REGARDING POTENTIALLY INSUR-
MOUNTABLE OBSTACLES.—If, at any time during the inte-
grated decisionmaking process for a proposed surface trans-
portation project, a cooperating agency determines that
there is any potentially insurmountable obstacle associated
with any of the alternative transportation projects that
might be undertaken to address the obstacle, the Secretary
shall—
‘‘(1) convene a meeting among the cooperating
agencies to address the obstacle;
‘‘(2) initiate conflict resolution efforts under sub-
section (j); or
‘‘(3) eliminate from consideration the alternative
transportation project with which the obstacle is asso-
ciated.
‘‘(j) CONFLICT RESOLUTION.—
‘‘(1) FORUM.—The NEPA process shall be used
as a forum to coordinate the actions of Federal, State,
regional, tribal, and local agencies, the private sector,
and the public to develop and shape surface transpor-
tation projects.
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‘‘(2) APPROACHES.—In addition to existing for-
mal public participation opportunities, collaborative,
problem solving, and consensus building approaches
shall be used, to the extent appropriate (and, when
appropriate, mediation may be used) to implement
the integrated decisionmaking process with a goal of
appropriately considering factors relating to trans-
portation development, economic prosperity, protec-
tion of public health and the environment, community
and neighborhood preservation, and quality of life for
present and future generations.
‘‘(3) UNRESOLVED ISSUES.—
‘‘(A) NOTIFICATION.—If, before the final
transportation NEPA document is approved—
‘‘(i) an issue remains unresolved be-
tween the lead Federal agency and the co-
operating agency; and
‘‘(ii) efforts have been exhausted to re-
solve the issue at the field levels of each
agency—
‘‘(I) within the applicable time-
frame of the interagency schedule es-
tablished under subsection (f)(5); or
‘‘(II) if no timeframe is estab-
lished, within 90 days;
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the field level officer of the lead agency shall no-
tify the field level officer of the cooperating agen-
cy that the field level officer of the lead agency
intends to bring the issue to the personal atten-
tion of the heads of the agencies.
‘‘(B) EFFORTS BY THE AGENCY HEADS.—
The head of the lead agency shall contact the
head of the cooperating agency and attempt to
resolve the issue within 30 days after notifica-
tion by the field level officer of the unresolved
issue.
‘‘(C) CONSULTATION WITH CEQ.—The heads
of the agencies are encouraged to consult with the
Chair of the Council on Environmental Quality
during the 30-day period under subparagraph
(B).
‘‘(D) FAILURE TO RESOLVE.—If the heads
of the agencies do not resolve the issue within the
time specified in subparagraph (B), the referral
process under part 1504 of title 40, Code of Fed-
eral Regulations (or any successor regulation),
shall be initiated with respect to the issue.
‘‘(k) JUDICIAL REVIEW.—Nothing in this section af-
fects the reviewability of any final agency action in a dis-
trict court of the United States or any State court.
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‘‘(l) STATUTORY CONSTRUCTION.—Nothing in this sec-
tion affects—
‘‘(1) the applicability of the requirements of the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) or any other statute; or
‘‘(2) the responsibility of any Federal, State,
tribal, or local officer to comply with or enforce any
statute or regulation.’’.
(b) TIMETABLE; REPORT TO CONGRESS.—The Sec-
retary, in consultation with the Chair of the Council on
Environmental Quality and after notice and opportunity
for public comment—
(1) not later than 180 days after the date of en-
actment of this Act, shall design the integrated deci-
sionmaking process required by the amendment made
by subsection (a) consistent with part 1501, et seq.,
of title 40 of the Code of Federal Regulations;
(2) not later than 1 year after the date of enact-
ment of this Act, shall promulgate a regulation gov-
erning implementation of an integrated decision-
making process in accordance with the amendment
made by subsection (a); and
(3) not later than 2 years after the date of enact-
ment of this Act, shall submit to Congress a report
identifying any additional legislative or other solu-
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tions that would further enhance the integrated deci-
sionmaking process.
(c) Section 112 of title 23, United States Code, is
amended by adding at the end the following new subsection:
‘‘(g) SELECTION PROCESS.—It shall not be considered
to be a conflict of interest, as defined under section 1.33
of title 23, Code of Federal Regulations, for a State to pro-
cure, under a single contract, the services of a consultant
to prepare any environmental assessments or analyses re-
quired, including environmental impact statements, as well
as subsequent engineering and design work on the same
project: Provided, That the State has conducted an inde-
pendent multi-disciplined review that assesses the objectiv-
ity of any analysis, environmental assessment or environ-
mental impact statement prior to its submission to the
agency that approves the project.
(d) CONFORMING AMENDMENT.—The analysis for sub-
chapter III of chapter 3 of title 49, United States Code,
is amended by adding at the end the following:
‘‘354. Integrated decisionmaking process.’’.
CHAPTER 3—ELIGIBILITY AND
FLEXIBILITY
SEC. 1231. DEFINITION OF OPERATIONAL IMPROVEMENT.
Section 101(a) of title 23, United States Code, is
amended by striking the undesignated paragraph defining
‘‘operational improvement’’ and inserting the following:
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‘‘The term ‘operational improvement’ means the in-
stallation, operation, or maintenance, in accordance with
subchapter II of chapter 5, of public infrastructure to sup-
port intelligent transportation systems and includes the in-
stallation or operation of any traffic management activity,
communication system, or roadway weather information
and prediction system, and any other improvement that the
Secretary may designate that enhances roadway safety and
mobility during adverse weather.’’.
SEC. 1232. ELIGIBILITY OF FERRY BOATS AND FERRY TER-
MINAL FACILITIES.
(a) IN GENERAL.—Section 129(c) of title 23, United
States Code, is amended by inserting ‘‘in accordance with
sections 103, 133, and 149,’’ after ‘‘toll or free,’’.
(b) NATIONAL HIGHWAY SYSTEM.—Section 103(b)(5)
of title 23, United States Code (as amended by section
1234), is amended by adding at the end the following:
‘‘(R) Construction of ferry boats and ferry
terminal facilities, if the conditions described in
section 129(c) are met.’’.
(c) SURFACE TRANSPORTATION PROGRAM.—Section
133(b) of title 23, United States Code, is amended by add-
ing at the end the following:
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‘‘(12) Construction of ferry boats and ferry ter-
minal facilities, if the conditions described in section
129(c) are met.’’.
(d) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM.—Section 149(b) of title 23, United
States Code, is amended—
(1) in paragraph (3), by striking ‘‘or’’ at the
end;
(2) in paragraph (4), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after paragraph (4) the follow-
ing:
‘‘(5) if the project or program is to construct a
ferry boat or ferry terminal facility and if the condi-
tions described in section 129(c) are met.’’.
SEC. 1233. FLEXIBILITY OF SAFETY PROGRAMS.
Section 133(d) of title 23, United States Code, is
amended by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) SAFETY PROGRAMS.—
‘‘(A) IN GENERAL.—With respect to funds
apportioned for each of fiscal years 1998 through
2003—
‘‘(i) an amount equal to 2 percent of
the amount apportioned to a State under
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section 104(b)(3) shall be available only to
carry out activities eligible under section
130;
‘‘(ii) an amount equal to 2 percent of
the amount apportioned to a State under
section 104(b)(3) shall be available only to
carry out activities eligible under section
152; and
‘‘(iii) an amount equal to 6 percent of
the amount apportioned to a State under
section 104(b)(3) shall be available only to
carry out activities eligible under section
130 or 152.
‘‘(B) TRANSFER OF FUNDS.—If a State cer-
tifies to the Secretary that any part of the
amount set aside by the State under subpara-
graph (A)(i) is in excess of the needs of the State
for activities under section 130 and the Sec-
retary accepts the certification, the State may
transfer that excess part to the set-aside of the
State under subparagraph (A)(ii).
‘‘(C) TRANSFERS TO OTHER SAFETY PRO-
GRAMS.—A State may transfer funds set aside
under subparagraph (A)(iii) to the apportion-
ment of the State under section 402 or the allo-
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cation of the State under section 31104 of title
49.’’.
SEC. 1234. ELIGIBILITY OF PROJECTS ON THE NATIONAL
HIGHWAY SYSTEM.
Section 103(b) of title 23, United States Code (as
amended by section 1701(a)), is amended by adding at the
end the following:
‘‘(5) ELIGIBLE PROJECTS FOR NHS.—Subject to
approval by the Secretary, funds apportioned to a
State under section 104(b)(1)(C) for the National
Highway System may be obligated for any of the fol-
lowing:
‘‘(A) Construction, reconstruction, resur-
facing, restoration, and rehabilitation of seg-
ments of the National Highway System.
‘‘(B) Operational improvements for seg-
ments of the National Highway System.
‘‘(C) Construction of, and operational im-
provements for, a Federal-aid highway not on
the National Highway System, construction of a
transit project eligible for assistance under chap-
ter 53 of title 49, and capital improvements to
any National Railroad Passenger Corporation
passenger rail line or any publicly-owned inter-
city passenger rail line, if—
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‘‘(i) the highway, transit, or rail
project is in the same corridor as, and in
proximity to, a fully access-controlled high-
way designated as a part of the National
Highway System;
‘‘(ii) the construction or improvements
will improve the level of service on the fully
access-controlled 
highway 
described 
in
clause (i) and improve regional traffic flow;
and
‘‘(iii) the construction or improvements
are more cost-effective than an improvement
to the fully access-controlled highway de-
scribed in clause (i).
‘‘(D) Highway safety improvements for seg-
ments of the National Highway System.
‘‘(E) Transportation planning in accord-
ance with sections 134 and 135.
‘‘(F) Highway research and planning in ac-
cordance with chapter 5.
‘‘(G) Highway-related technology transfer
activities.
‘‘(H) Capital and operating costs for traffic
monitoring, management, and control facilities
and programs.
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‘‘(I) Fringe and corridor parking facilities.
‘‘(J) Carpool and vanpool projects.
‘‘(K) Bicycle transportation and pedestrian
walkways in accordance with section 217.
‘‘(L) Development, establishment, and im-
plementation of management systems under sec-
tion 303.
‘‘(M) In accordance with all applicable Fed-
eral law (including regulations), participation
in natural habitat and wetland mitigation ef-
forts related to projects funded under this title,
which may include participation in natural
habitat and wetland mitigation banks, contribu-
tions to statewide and regional efforts to con-
serve, restore, enhance, and create natural habi-
tats and wetland, and development of statewide
and regional natural habitat and wetland con-
servation and mitigation plans, including any
such banks, efforts, and plans authorized under
the Water Resources Development Act of 1990
(Public Law 101–640) (including crediting pro-
visions). Contributions to the mitigation efforts
described in the preceding sentence may take
place concurrent with or in advance of project
construction, except that contributions in ad-
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vance of project construction may occur only if
the efforts are consistent with all applicable re-
quirements of Federal law (including regula-
tions) and State transportation planning proc-
esses. With respect to participation in a natural
habitat or wetland mitigation effort related to a
project funded under this title that has an im-
pact that occurs within the service area of a
mitigation bank, preference shall be given, to the
maximum extent practicable, to the use of the
mitigation bank if the bank contains sufficient
available credits to offset the impact and the
bank is approved in accordance with the Federal
Guidance for the Establishment, Use and Oper-
ation of Mitigation Banks (60 Fed. Reg. 58605
(November 28, 1995)) or other applicable Federal
law (including regulations).
‘‘(N) Publicly-owned intracity or intercity
passenger rail or bus terminals, including termi-
nals of the National Railroad Passenger Cor-
poration and publicly-owned intermodal surface
freight transfer facilities, other than seaports and
airports, if the terminals and facilities are lo-
cated on or adjacent to National Highway Sys-
tem routes or connections to the National High-
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way System selected in accordance with para-
graph (2).
‘‘(O) Infrastructure-based intelligent trans-
portation systems capital improvements.
‘‘(P) In the Virgin Islands, Guam, Amer-
ican Samoa, and the Commonwealth of the
Northern Mariana Islands, any project eligible
for funding under section 133, any airport, and
any seaport.
‘‘(Q) Publicly owned components of mag-
netic levitation transportation systems.’’.
SEC. 1235. ELIGIBILITY OF PROJECTS UNDER THE SURFACE
TRANSPORTATION PROGRAM.
Section 133(b) of title 23, United States Code (as
amended by section 1232(c)), is amended—
(1) in paragraph (2), by striking ‘‘and publicly
owned intracity or intercity bus terminals and facili-
ties’’ and inserting ‘‘, including vehicles and facili-
ties, whether publicly or privately owned, that are
used to provide intercity passenger service by bus or
rail’’;
(2) in paragraph (3)—
(A) by striking ‘‘and bicycle’’ and inserting
‘‘bicycle’’; and
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(B) by inserting before the period at the end
the following: ‘‘, and the modification of public
sidewalks to comply with the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.)’’;
(3) in paragraph (4)—
(A) by inserting ‘‘, publicly owned pas-
senger rail,’’ after ‘‘Highway’’;
(B) by inserting ‘‘infrastructure’’ after
‘‘safety’’; and
(C) by inserting before the period at the end
the following: ‘‘, and any other noninfrastructure
highway safety improvements’’;
(4) in paragraph (11)—
(A) in the first sentence—
(i) by inserting ‘‘natural habitat and’’
after ‘‘participation in’’ each place it ap-
pears;
(ii) by striking ‘‘enhance and create’’
and inserting ‘‘enhance, and create natural
habitats and’’; and
(iii) by inserting ‘‘natural habitat
and’’ before ‘‘wetlands conservation’’; and
(B) by adding at the end the following:
‘‘With respect to participation in a natural
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habitat or wetland mitigation effort related to a
project funded under this title that has an im-
pact that occurs within the service area of a
mitigation bank, preference shall be given, to the
maximum extent practicable, to the use of the
mitigation bank if the bank contains sufficient
available credits to offset the impact and the
bank is approved in accordance with the Federal
Guidance for the Establishment, Use and Oper-
ation of Mitigation Banks (60 Fed. Reg. 58605
(November 28, 1995)) or other applicable Federal
law (including regulations).’’; and
(5) in subsection (b)(9), by striking ‘‘section
108(f)(1)(A) (other than clauses (xii) and (xvi)) of the
Clean Air Act’’ and inserting ‘‘section 108(f)(1)(A)
(other than clause (xvi)) of the Clean Air Act (42
U.S.C. 7408(f)(1)(A))’’;
(6) by adding at the end the following:
‘‘(13) Publicly owned intercity passenger rail in-
frastructure, including infrastructure owned by the
National Railroad Passenger Corporation.
‘‘(14) Publicly owned passenger rail vehicles, in-
cluding vehicles owned by the National Railroad Pas-
senger Corporation.
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‘‘(15) Infrastructure-based intelligent transpor-
tation systems capital improvements.
‘‘(16) Publicly owned components of magnetic
levitation transportation systems.
‘‘(17) Environmental restoration and pollution
abatement projects (including the retrofit or construc-
tion of storm water treatment systems) to address
water pollution or environmental degradation caused
or contributed to by transportation facilities, which
projects shall be carried out when the transportation
facilities are undergoing reconstruction, rehabilita-
tion, resurfacing, or restoration; except that the ex-
penditure of funds under this section for any such en-
vironmental 
restoration 
or 
pollution 
abatement
project shall not exceed 20 percent of the total cost of
the reconstruction, rehabilitation, resurfacing, or res-
toration project.’’.
SEC. 1236. DESIGN FLEXIBILITY.
Section 109 of title 23, United States Code, is amended
by striking subsection (a) and inserting the following:
‘‘(a) IN GENERAL.—
‘‘(1) REQUIREMENTS FOR FACILITIES.—The Sec-
retary shall ensure that the plans and specifications
for each proposed highway project under this chapter
provide for a facility that will—
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‘‘(A) adequately serve the existing traffic of
the highway in a manner that is conducive to
safety, durability, and economy of maintenance;
and
‘‘(B) be designed and constructed in accord-
ance with criteria best suited to accomplish the
objectives described in subparagraph (A) and to
conform to the particular needs of each locality.
‘‘(2) CONSIDERATION
OF
PLANNED
FUTURE
TRAFFIC DEMANDS.—In carrying out paragraph (1),
the Secretary shall ensure the consideration of the
planned future traffic demands of the facility.’’.
Subtitle C—Finance
CHAPTER 1—GENERAL PROVISIONS
SEC. 1301. STATE INFRASTRUCTURE BANK PROGRAM.
(a) IN GENERAL.—Chapter 1 of title 23, United States
Code, is amended by adding at the end the following:
‘‘§ 162. State infrastructure bank program
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) 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 ap-
proved by the Secretary and that relate to the
project with respect to which the assistance is
being provided.
‘‘(2) STATE.—The term ‘State’ has the meaning
given the term under section 401.
‘‘(b) COOPERATIVE AGREEMENTS.—
‘‘(1) IN GENERAL.—
‘‘(A) PURPOSE
OF
AGREEMENTS.—Subject
to this section, the Secretary may enter into co-
operative agreements with States for the estab-
lishment of State infrastructure banks and
multistate infrastructure banks for making loans
and providing other assistance to public and pri-
vate entities carrying out or proposing to carry
out projects eligible for assistance under this sec-
tion.
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‘‘(B) CONTENTS
OF
AGREEMENTS.—Each
cooperative agreement shall specify procedures
and guidelines for establishing, operating, and
providing assistance from the infrastructure
bank.
‘‘(2) INTERSTATE
COMPACTS.—If 2 or more
States enter into a cooperative agreement under para-
graph (1) with the Secretary for the establishment of
a multistate infrastructure bank, Congress grants con-
sent to those States to enter into an interstate com-
pact establishing the bank in accordance with this
section.
‘‘(c) FUNDING.—
‘‘(1) 
CONTRIBUTION.—Notwithstanding 
any
other provision of law, the Secretary may allow, sub-
ject to subsection (h)(1), a State that enters into a co-
operative agreement under this section to contribute
to the infrastructure bank established by the State not
to exceed—
‘‘(A)(i) the total amount of funds appor-
tioned to the State under each of paragraphs (1)
and (3) of section 104(b), excluding funds set
aside under paragraphs (1) and (2) of section
133(d); and
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‘‘(ii) the total amount of funds allocated to
the State under section 105 and under section
1102 of the Intermodal Surface Transportation
Efficiency Act of 1998;
‘‘(B) the total amount of funds made avail-
able to the State or other Federal transit grant
recipient for capital projects (as defined in sec-
tion 5302 of title 49) under sections 5307, 5309,
and 5311 of title 49; and
‘‘(C) the total amount of funds made avail-
able to the State under subtitle V of title 49.
‘‘(2) CAPITALIZATION GRANT.—For the purposes
of this section, Federal funds contributed to the infra-
structure bank under this subsection shall constitute
a capitalization grant for the infrastructure bank.
‘‘(3) SPECIAL RULE FOR URBANIZED AREAS OF
OVER 200,000.—Funds that are apportioned or allo-
cated to a State under section 104(b)(3) and attrib-
uted to urbanized areas of a State with a population
of over 200,000 individuals under section 133(d)(2)
may be used to provide assistance from an infrastruc-
ture bank under this section with respect to a project
only if the metropolitan planning organization des-
ignated for the area concurs, in writing, with the pro-
vision of the assistance.
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‘‘(d) FORMS OF ASSISTANCE FROM INFRASTRUCTURE
BANKS.—
‘‘(1) IN GENERAL.—An infrastructure bank es-
tablished under this section may make loans or pro-
vide other 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.
‘‘(2) SUBORDINATION OF LOANS.—The amount of
any loan or other assistance provided for the project
may be subordinated to any other debt financing for
the project.
‘‘(3) INITIAL
ASSISTANCE.—Initial assistance
provided with respect to a project from Federal funds
contributed to an infrastructure bank under this sec-
tion shall not be made in the form of a grant.
‘‘(e) QUALIFYING PROJECTS.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
funds in an infrastructure bank established under this
section may be used only to provide assistance with
respect to projects eligible for assistance under this
title, for capital projects (as defined in section 5302
of title 49), or for any other project related to surface
transportation that the Secretary determines to be ap-
propriate.
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‘‘(2) INTERSTATE FUNDS.—Funds contributed to
an infrastructure bank from funds apportioned to a
State under subparagraph (A) or (B) of section
104(b)(1) may be used only to provide assistance with
respect to projects eligible for assistance under those
subparagraphs.
‘‘(3) RAIL PROGRAM FUNDS.—Funds contributed
to an infrastructure bank from funds made available
to a State under subtitle V of title 49 shall be used
in a manner consistent with any project description
specified under the law making the funds available to
the State.
‘‘(f) INFRASTRUCTURE BANK REQUIREMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), in
order to establish an infrastructure bank under this
section, each State establishing such a bank shall—
‘‘(A) contribute, at a minimum, to the bank
from non-Federal sources an amount equal to 25
percent of the amount of each capitalization
grant made to the State and contributed to the
bank under subsection (c), except that if the
State has a higher Federal share payable under
section 120(b) of title 23, United States Code, the
State shall be required to contribute only an
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amount commensurate with the higher Federal
share;
‘‘(B) ensure that the bank maintains on a
continuing basis an investment grade rating on
its debt issuances and its ability to pay claims
under credit enhancement programs of the bank;
‘‘(C) ensure that investment income gen-
erated by funds contributed to the bank will be—
‘‘(i) credited to the bank;
‘‘(ii) available for use in providing
loans and other assistance to projects eligi-
ble for assistance from the bank; and
‘‘(iii) invested in United States Treas-
ury securities, 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;
‘‘(D) ensure that any loan from the bank
will bear interest at or below market rates, as de-
termined by the State, to make the project that
is the subject of the loan feasible;
‘‘(E) ensure that repayment of the loan
from the bank will commence not later than 5
years after the project has been completed or, in
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the case of a highway project, the facility has
opened to traffic, whichever is later;
‘‘(F) ensure that the term for repaying any
loan will not exceed the lesser of—
‘‘(i) 35 years after the date of the first
payment on the loan under subparagraph
(E); or
‘‘(ii) the useful life of the investment;
and
‘‘(G) require the bank to make a biennial
report to the Secretary and to make such other
reports as the Secretary may require in guide-
lines.
‘‘(2) WAIVERS BY THE SECRETARY.—The Sec-
retary may waive a requirement of any of subpara-
graphs (C) through (G) of paragraph (1) with respect
to an infrastructure bank if the Secretary determines
that the waiver is consistent with the objectives of this
section.
‘‘(g) LIMITATION ON REPAYMENTS.—Notwithstanding
any other provision of law, the repayment of a loan or other
assistance provided from an infrastructure bank under this
section may not be credited toward the non-Federal share
of the cost of any project.
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‘‘(h) SECRETARIAL REQUIREMENTS.—In administer-
ing this section, the Secretary shall—
‘‘(1) ensure that Federal disbursements shall be
at an annual rate of not more than 20 percent of the
amount designated by the State for State infrastruc-
ture bank capitalization under subsection (c)(1), ex-
cept that the Secretary may disburse funds to a State
in an amount needed to finance a specific project;
and
‘‘(2) revise cooperative agreements entered into
with States under section 350 of the National High-
way System Designation Act of 1995 (Public Law
104–59) to comply with this section.
‘‘(i) APPLICABILITY OF FEDERAL LAW.—
‘‘(1) IN GENERAL.—The requirements of this title
or title 49 that would otherwise apply to funds made
available under that title and projects assisted with
those funds shall apply to—
‘‘(A) funds made available under that title
and contributed to an infrastructure bank estab-
lished under this section, including the non-Fed-
eral contribution required under section (f); and
‘‘(B) projects assisted by the bank through
the use of the funds;
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except to the extent that the Secretary determines that
any requirement of that title (other than sections 113
and 114 of this title and section 5333 of title 49) is
not consistent with the objectives of this section.
‘‘(2) REPAYMENTS.—The requirements of this
title or title 49 shall not apply to repayments from
non-Federal sources to an infrastructure bank from
projects assisted by the bank. Such a repayment shall
not be considered to be Federal funds.
‘‘(j) UNITED STATES NOT OBLIGATED.—
‘‘(1) IN GENERAL.—The contribution of Federal
funds to an infrastructure bank established under this
section shall not be construed as a commitment, guar-
antee, or obligation on the part of the United States
to any third party. No third party shall have any
right against the United States for payment solely by
virtue of the contribution.
‘‘(2) STATEMENT.—Any security or debt financ-
ing 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.
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‘‘(l) PROGRAM ADMINISTRATION.—
‘‘(1) IN GENERAL.—A State may expend not to
exceed 2 percent of the Federal funds contributed to
an infrastructure bank established by the State under
this section to pay the reasonable costs of administer-
ing the bank.
‘‘(2) NON-FEDERAL FUNDS.—The limitation de-
scribed in paragraph (1) shall not apply to non-Fed-
eral funds.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code, is amended by
adding at the end the following:
‘‘162. State infrastructure bank program.’’.
CHAPTER 
2—TRANSPORTATION 
INFRA-
STRUCTURE FINANCE AND INNOVA-
TION
SEC. 1311. SHORT TITLE.
This chapter may be cited as the ‘‘Transportation In-
frastructure Finance and Innovation Act of 1998’’.
SEC. 1312. FINDINGS.
Congress finds that—
(1) a well-developed system of transportation in-
frastructure is critical to the economic well-being,
health, and welfare of the people of the United States;
(2) traditional public funding techniques such as
grant programs are unable to keep pace with the in-
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frastructure investment needs of the United States be-
cause of budgetary constraints at the Federal, State,
and local levels of government;
(3) major transportation infrastructure facilities
that address critical national needs, such as inter-
modal facilities, border crossings, and multistate
trade corridors, are of a scale that exceeds the capac-
ity of Federal and State assistance programs in effect
on the date of enactment of this Act;
(4) new investment capital can be attracted to
infrastructure projects that are capable of generating
their own revenue streams through user charges or
other dedicated funding sources; and
(5) a Federal credit program for projects of na-
tional significance can complement existing funding
resources by filling market gaps, thereby leveraging
substantial private co-investment.
SEC. 1313. ESTABLISHMENT OF PROGRAM.
(a) IN GENERAL.—Chapter 1 of title 23, United States
Code, is amended by adding at the end the following:
‘‘SUBCHAPTER II—INFRASTRUCTURE FINANCE
‘‘§ 181. Definitions
‘‘In this subchapter:
‘‘(1) ELIGIBLE PROJECT COSTS.—The term ‘eli-
gible project costs’ means amounts substantially all of
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which are paid by, or for the account of, an obligor
in connection with a project, including the cost of—
‘‘(A) development phase activities, including
planning, feasibility analysis, revenue forecast-
ing, environmental review, permitting, prelimi-
nary engineering and design work, and other
preconstruction activities;
‘‘(B) construction, reconstruction, rehabili-
tation, replacement, and acquisition of real
property (including land related to the project
and improvements to land), environmental miti-
gation, construction contingencies, and acquisi-
tion of equipment; and
‘‘(C) capitalized interest necessary to meet
market requirements, reasonably required reserve
funds, capital issuance expenses, and other car-
rying costs during construction.
‘‘(2) FEDERAL CREDIT INSTRUMENT.—The term
‘Federal credit instrument’ means a secured loan,
loan guarantee, or line of credit authorized to be
made available under this subchapter with respect to
a project.
‘‘(3) LENDER.—The term ‘lender’ means any
non-Federal qualified institutional buyer (as defined
in section 230.144A(a) of title 17, Code of Federal
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Regulations (or any successor regulation), known as
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Securities Act of 1933
(15 U.S.C. 77a et seq.)), including—
‘‘(A) a qualified retirement plan (as defined
in section 4974(c) of the Internal Revenue Code
of 1986) that is a qualified institutional buyer;
and
‘‘(B) a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of
1986) that is a qualified institutional buyer.
‘‘(4) LINE OF CREDIT.—The term ‘line of credit’
means an agreement entered into by the Secretary
with an obligor under section 184 to provide a direct
loan at a future date upon the occurrence of certain
events.
‘‘(5) LOAN GUARANTEE.—The term ‘loan guar-
antee’ means any guarantee or other pledge by the
Secretary to pay all or part of the principal of and
interest on a loan or other debt obligation issued by
an obligor and funded by a lender.
‘‘(6) LOCAL SERVICER.—The term ‘local servicer’
means—
‘‘(A) a State infrastructure bank established
under this title; or
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an obligor and funded by the Secretary in connection
with the financing of a project under section 183.
‘‘(11) STATE.—The term ‘State’ has the meaning
given the term in section 101.
‘‘(12) SUBSTANTIAL
COMPLETION.—The term
‘substantial completion’ means the opening of a
project to vehicular or passenger traffic.
‘‘§ 182. Determination of eligibility and project selec-
tion
‘‘(a) ELIGIBILITY.—To be eligible to receive financial
assistance under this subchapter, a project shall meet the
following criteria:
‘‘(1) INCLUSION IN TRANSPORTATION PLANS AND
PROGRAMS.—The project—
‘‘(A) shall be included in the State trans-
portation plan required under section 135; and
‘‘(B) at such time as an agreement to make
available a Federal credit instrument is entered
into under this subchapter, shall be included in
the approved State transportation improvement
program required under section 134.
‘‘(2) APPLICATION.—A State, a local servicer
identified under section 185(a), or the entity under-
taking the project shall submit a project application
to the Secretary.
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‘‘(3) ELIGIBLE PROJECT COSTS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), to be eligible for assistance
under this subchapter, a project shall have eligi-
ble project costs that are reasonably anticipated
to equal or exceed the lesser of—
‘‘(i) $100,000,000; or
‘‘(ii) 50 percent of the amount of Fed-
eral highway assistance funds apportioned
for the most recently-completed fiscal year
to the State in which the project is located.
‘‘(B) INTELLIGENT
TRANSPORTATION
SYS-
TEM PROJECTS.—In the case of a project prin-
cipally involving the installation of an intel-
ligent transportation system, eligible project costs
shall be reasonably anticipated to equal or exceed
$30,000,000.
‘‘(4) DEDICATED
REVENUE
SOURCES.—Project
financing shall be repayable, in whole or in part,
from tolls, user fees, or other dedicated revenue
sources.
‘‘(5) PUBLIC
SPONSORSHIP
OF
PRIVATE
ENTI-
TIES.—In the case of a project that is undertaken by
an entity that is not a State or local government or
an agency or instrumentality of a State or local gov-
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ernment, the project that the entity is undertaking
shall be publicly sponsored as provided in paragraphs
(1) and (2).
‘‘(b) SELECTION AMONG ELIGIBLE PROJECTS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for selecting among projects that meet
the eligibility criteria specified in subsection (a).
‘‘(2) SELECTION
CRITERIA.—The selection cri-
teria shall include the following:
‘‘(A) The extent to which the project is na-
tionally or regionally significant, in terms of
generating economic benefits, supporting inter-
national commerce, or otherwise enhancing the
national transportation system.
‘‘(B) The creditworthiness of the project, in-
cluding a determination by the Secretary that
any financing for the project has appropriate se-
curity features, such as a rate covenant, to en-
sure repayment. The Secretary shall require each
project applicant to provide a preliminary rat-
ing opinion letter from a nationally recognized
bond rating agency.
‘‘(C) The extent to which assistance under
this subchapter would foster innovative public-
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private partnerships and attract private debt or
equity investment.
‘‘(D) The likelihood that assistance under
this subchapter would enable the project to pro-
ceed at an earlier date than the project would
otherwise be able to proceed.
‘‘(E) The extent to which the project uses
new technologies, including intelligent transpor-
tation systems, that enhance the efficiency of the
project.
‘‘(F) The amount of budget authority re-
quired to fund the Federal credit instrument
made available under this subchapter.
‘‘(G) The extent to which the project helps
maintain or protect the environment.
‘‘(H) The extent to which assistance under
this chapter would reduce the contribution of
Federal grant assistance to the project.
‘‘(c) FEDERAL REQUIREMENTS.—The following provi-
sions of law shall apply to funds made available under this
subchapter and projects assisted with the funds:
‘‘(1) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).
‘‘(2) The National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
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‘‘(3) The Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42
U.S.C. 4601 et seq.).
‘‘§ 183. Secured loans
‘‘(a) IN GENERAL.—
‘‘(1) AGREEMENTS.—Subject to paragraph (2),
the Secretary may enter into agreements with 1 or
more obligors to make secured loans, the proceeds of
which shall be used—
‘‘(A) to finance eligible project costs; or
‘‘(B) to refinance interim construction fi-
nancing of eligible project costs;
of any project selected under section 182.
‘‘(2) LIMITATION ON REFINANCING OF INTERIM
CONSTRUCTION FINANCING.—A loan under paragraph
(1) shall not refinance interim construction financing
under paragraph (1)(B) later than 1 year after the
date of substantial completion of the project.
‘‘(b) TERMS AND LIMITATIONS.—
‘‘(1) IN GENERAL.—A secured loan under this
section with respect to a project shall be on such terms
and conditions and contain such covenants, represen-
tations, warranties, and requirements (including re-
quirements for audits) as the Secretary determines
appropriate.
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‘‘(2) MAXIMUM AMOUNT.—The amount of the se-
cured loan shall not exceed 33 percent of the reason-
ably anticipated eligible project costs.
‘‘(3) PAYMENT.—The secured loan—
‘‘(A) shall—
‘‘(i) be payable, in whole or in part,
from tolls, user fees, or other dedicated reve-
nue sources; and
‘‘(ii) include a rate covenant, coverage
requirement, or similar security feature
supporting the project obligations; and
‘‘(B) may have a lien on revenues described
in subparagraph (A) subject to any lien securing
project obligations.
‘‘(4) INTEREST RATE.—The interest rate on the
secured loan shall be not less than the yield on mar-
ketable United States Treasury securities of a similar
maturity to the maturity of the secured loan on the
date of execution of the loan agreement.
‘‘(5) MATURITY DATE.—The final maturity date
of the secured loan shall be not later than 35 years
after the date of substantial completion of the project.
‘‘(6) NONSUBORDINATION.—The secured loan
shall not be subordinated to the claims of any holder
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of project obligations in the event of bankruptcy, in-
solvency, or liquidation of the obligor.
‘‘(7) FEES.—The Secretary may establish fees at
a level sufficient to cover all or a portion of the costs
to the Federal Government of making a secured loan
under this section.
‘‘(8) NON-FEDERAL SHARE.—The proceeds of a
secured loan under this subchapter may be used for
any non-Federal share of project costs required under
this title or chapter 53 of title 49, if the loan is re-
payable from non-Federal funds.
‘‘(c) REPAYMENT.—
‘‘(1) SCHEDULE.—The Secretary shall establish
a repayment schedule for each secured loan under this
section based on the projected cash flow from project
revenues and other repayment sources.
‘‘(2) COMMENCEMENT.—Scheduled loan repay-
ments of principal or interest on a secured loan under
this section shall commence not later than 5 years
after the date of substantial completion of the project.
‘‘(3) SOURCES
OF
REPAYMENT
FUNDS.—The
sources of funds for scheduled loan repayments under
this section shall include tolls, user fees, or other dedi-
cated revenue sources.
‘‘(4) DEFERRED PAYMENTS.—
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‘‘(A) AUTHORIZATION.—If, at any time
during the 10 years after the date of substantial
completion of the project, the project is unable to
generate sufficient revenues to pay scheduled
principal and interest on the secured loan, the
Secretary may, pursuant to established criteria
for the project agreed to by the entity undertak-
ing the project and the Secretary, allow the obli-
gor to add unpaid principal and interest to the
outstanding balance of the secured loan.
‘‘(B) INTEREST.—Any payment deferred
under subparagraph (A) shall—
‘‘(i) continue to accrue interest in ac-
cordance with subsection (b)(4) until fully
repaid; and
‘‘(ii) be scheduled to be amortized over
the remaining term of the loan beginning
not later than 10 years after the date of
substantial completion of the project in ac-
cordance with paragraph (1).
‘‘(5) PREPAYMENT.—
‘‘(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying sched-
uled debt service requirements on the project obli-
gations and secured loan and all deposit require-
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ments under the terms of any trust agreement,
bond resolution, or similar agreement securing
project obligations may be applied annually to
prepay the secured loan without penalty.
‘‘(B) USE
OF
PROCEEDS
OF
REFINANC-
ING.—The secured loan may be prepaid at any
time without penalty from the proceeds of refi-
nancing from non-Federal funding sources.
‘‘(d) SALE OF SECURED LOANS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), as
soon as practicable after substantial completion of a
project and after notifying the obligor, the Secretary
may sell to another entity or reoffer into the capital
markets a secured loan for the project if the Secretary
determines that the sale or reoffering can be made on
favorable terms.
‘‘(2) CONSENT OF OBLIGOR.—In making a sale
or reoffering under paragraph (1), the Secretary may
not change the original terms and conditions of the
secured loan without the written consent of the obli-
gor.
‘‘(e) LOAN GUARANTEES.—
‘‘(1) IN GENERAL.—The Secretary may provide
a loan guarantee to a lender in lieu of making a se-
cured loan if the Secretary determines that the budg-
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etary cost of the loan guarantee is substantially the
same as that of a secured loan.
‘‘(2) TERMS.—The terms of a guaranteed loan
shall be consistent with the terms set forth in this sec-
tion for a secured loan, except that the rate on the
guaranteed loan and any prepayment features shall
be negotiated between the obligor and the lender, with
the consent of the Secretary.
‘‘§ 184. Lines of credit
‘‘(a) IN GENERAL.—
‘‘(1) AGREEMENTS.—The Secretary may enter
into agreements to make available lines of credit to 1
or more obligors in the form of direct loans to be
made by the Secretary at future dates on the occur-
rence of certain events for any project selected under
section 182.
‘‘(2) USE OF PROCEEDS.—The proceeds of a line
of credit made available under this section shall be
available to pay debt service on project obligations
issued to finance eligible project costs, extraordinary
repair and replacement costs, operation and mainte-
nance expenses, and costs associated with unexpected
Federal or State environmental restrictions.
‘‘(b) TERMS AND LIMITATIONS.—
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‘‘(1) IN GENERAL.—A line of credit under this
section with respect to a project shall be on such terms
and conditions and contain such covenants, represen-
tations, warranties, and requirements (including re-
quirements for audits) as the Secretary determines
appropriate.
‘‘(2) MAXIMUM AMOUNTS.—
‘‘(A) TOTAL AMOUNT.—The total amount of
the line of credit shall not exceed 33 percent of
the reasonably anticipated eligible project costs.
‘‘(B) 
ONE-YEAR
DRAWS.—The 
amount
drawn in any 1 year shall not exceed 20 percent
of the total amount of the line of credit.
‘‘(3) DRAWS.—Any draw on the line of credit
shall represent a direct loan and shall be made only
if net revenues from the project (including capitalized
interest, any debt service reserve fund, and any other
available reserve) are insufficient to pay the costs
specified in subsection (a)(2).
‘‘(4) INTEREST RATE.—The interest rate on a di-
rect loan resulting from a draw on the line of credit
shall be not less than the yield on 30-year marketable
United States Treasury securities as of the date on
which the line of credit is obligated.
‘‘(5) SECURITY.—The line of credit—
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‘‘(A) shall—
‘‘(i) be payable, in whole or in part,
from tolls, user fees, or other dedicated reve-
nue sources; and
‘‘(ii) include a rate covenant, coverage
requirement, or similar security feature
supporting the project obligations; and
‘‘(B) may have a lien on revenues described
in subparagraph (A) subject to any lien securing
project obligations.
‘‘(6) PERIOD
OF
AVAILABILITY.—The line of
credit shall be available during the period beginning
on the date of substantial completion of the project
and ending not later than 10 years after that date.
‘‘(7) RIGHTS OF THIRD PARTY CREDITORS.—
‘‘(A) AGAINST FEDERAL GOVERNMENT.—A
third party creditor of the obligor shall not have
any right against the Federal Government with
respect to any draw on the line of credit.
‘‘(B) ASSIGNMENT.—An obligor may assign
the line of credit to 1 or more lenders or to a
trustee on the lenders’ behalf.
‘‘(8) NONSUBORDINATION.—A direct loan under
this section shall not be subordinated to the claims of
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any holder of project obligations in the event of bank-
ruptcy, insolvency, or liquidation of the obligor.
‘‘(9) FEES.—The Secretary may establish fees at
a level sufficient to cover all or a portion of the costs
to the Federal Government of providing a line of cred-
it under this section.
‘‘(10) RELATIONSHIP TO OTHER CREDIT INSTRU-
MENTS.—A project that receives a line of credit under
this section shall not also receive a secured loan or
loan guarantee under section 183 of an amount that,
combined with the amount of the line of credit, ex-
ceeds 33 percent of eligible project costs.
‘‘(c) REPAYMENT.—
‘‘(1) TERMS
AND
CONDITIONS.—The Secretary
shall establish repayment terms and conditions for
each direct loan under this section based on the pro-
jected cash flow from project revenues and other re-
payment sources.
‘‘(2) TIMING.—All scheduled repayments of prin-
cipal or interest on a direct loan under this section
shall commence not later than 5 years after the end
of the period of availability specified in subsection
(b)(6) and be fully repaid, with interest, by the date
that is 25 years after the end of the period of avail-
ability specified in subsection (b)(6).
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‘‘(3) SOURCES
OF
REPAYMENT
FUNDS.—The
sources of funds for scheduled loan repayments under
this section shall include tolls, user fees, or other dedi-
cated revenue sources.
‘‘§ 185. Project servicing
‘‘(a) REQUIREMENT.—The State in which a project
that receives financial assistance under this subchapter is
located may identify a local servicer to assist the Secretary
in servicing the Federal credit instrument made available
under this subchapter.
‘‘(b) AGENCY; FEES.—If a State identifies a local
servicer under subsection (a), the local servicer—
‘‘(1) shall act as the agent for the Secretary; and
‘‘(2) may receive a servicing fee, subject to ap-
proval by the Secretary.
‘‘(c) LIABILITY.—A local servicer identified under sub-
section (a) shall not be liable for the obligations of the obli-
gor to the Secretary or any lender.
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec-
retary may retain the services of expert firms in the field
of municipal and project finance to assist in the underwrit-
ing and servicing of Federal credit instruments.
‘‘§ 186. State and local permits
‘‘The provision of financial assistance under this sub-
chapter with respect to a project shall not—
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‘‘(1) relieve any recipient of the assistance of any
obligation to obtain any required State or local per-
mit or approval with respect to the project;
‘‘(2) limit the right of any unit of State or local
government to approve or regulate any rate of return
on private equity invested in the project; or
‘‘(3) otherwise supersede any State or local law
(including any regulation) applicable to the construc-
tion or operation of the project.
‘‘§ 187. Regulations
‘‘The Secretary may issue such regulations as the Sec-
retary determines appropriate to carry out this subchapter.
‘‘§ 188. Funding
‘‘(a) AUTHORIZATION OF CONTRACT AUTHORITY.—
‘‘(1) IN GENERAL.—There shall be available from
the Highway Trust Fund (other than the Mass Tran-
sit Account) to carry out this subchapter—
‘‘(A) $60,000,000 for fiscal year 1998;
‘‘(B) $60,000,000 for fiscal year 1999;
‘‘(C) $90,000,000 for fiscal year 2000;
‘‘(D) $90,000,000 for fiscal year 2001;
‘‘(E) $115,000,000 for fiscal year 2002; and
‘‘(F) $115,000,000 for fiscal year 2003.
‘‘(2) 
ADMINISTRATIVE
COSTS.—From 
funds
made available under paragraph (1), the Secretary
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may use, for the administration of this subchapter,
not more than $2,000,000 for each of fiscal years
1998 through 2003.
‘‘(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 available
under this subchapter shall be deemed to be accept-
ance by the United States of a contractual obligation
to fund the Federal credit instrument.
‘‘(2) AVAILABILITY.—Amounts authorized under
this section for a fiscal year shall be available for ob-
ligation on October 1 of the fiscal year.
‘‘(c) LIMITATIONS ON CREDIT AMOUNTS.—For each of
fiscal years 1998 through 2003, principal amounts of Fed-
eral credit instruments made available under this sub-
chapter shall be limited to the amounts specified in the fol-
lowing table:
Maximum amount
‘‘Fiscal year:
of credit:
1998 .............................................................................................
$1,200,000,000
1999 .............................................................................................
$1,200,000,000
2000 .............................................................................................
$1,800,000,000
2001 .............................................................................................
$1,800,000,000
2002 .............................................................................................
$2,300,000,000
2003 .............................................................................................
$2,300,000,000.
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‘‘§ 189. Imposition of annual fee on recipients
‘‘(a) IN GENERAL.—There is hereby imposed on any
recipient of a Federal credit instrument an annual fee equal
to the applicable percentage of the average outstanding Fed-
eral credit instrument amount made available to the recipi-
ent during the year under this subchapter.
‘‘(b) TIME OF IMPOSITION.—The fee described in sub-
section (a) shall be imposed on the annual anniversary date
of the receipt of the Federal credit instrument.
‘‘(c) APPLICABLE PERCENTAGE.—For the purposes of
subsection (a), the applicable percentage is, with respect to
an annual anniversary date occurring in—
‘‘(1) any of fiscal years 1999 through 2003,
1.9095 percent; and
‘‘(2) any fiscal year after 2003, 0.5144 percent.
‘‘(d) TERMINATION.—The fee imposed by this section
shall not apply with respect to annual anniversary dates
occurring after September 30, 2008.
‘‘(e) DEPOSIT OF RECEIPTS.—The fees collected by the
Secretary under this section shall be deposited in the gen-
eral fund of the Treasury of the United States as miscellane-
ous receipts.
‘‘§ 190. Report to Congress
‘‘Not later than 4 years after the date of enactment
of this subchapter, the Secretary shall submit to Congress
a report summarizing the financial performance of the
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projects that are receiving, or have received, assistance
under this subchapter, including a recommendation as to
whether the objectives of this subchapter are best served—
‘‘(1) by continuing the program under the au-
thority of the Secretary;
‘‘(2) by establishing a Government corporation
or Government-sponsored enterprise to administer the
program; or
‘‘(3) by phasing out the program and relying on
the capital markets to fund the types of infrastructure
investments assisted by this subchapter without Fed-
eral participation.’’.
(b) CONFORMING AMENDMENTS.—Chapter 1 of title
23, United States Code, is amended—
(1) in the analysis—
(A) by inserting before ‘‘Sec.’’ the following:
‘‘SUBCHAPTER I—GENERAL PROVISIONS’’;
and
(B) by adding at the end the following:
‘‘SUBCHAPTER II—INFRASTRUCTURE FINANCE
‘‘181. Definitions.
‘‘182. Determination of eligibility and project selection.
‘‘183. Secured loans.
‘‘184. Lines of credit.
‘‘185. Project servicing.
‘‘186. State and local permits.
‘‘187. Regulations.
‘‘188. Funding.
‘‘189. Imposition of annual fee on recipients.
‘‘190. Report to Congress.’’;
and
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(2) by inserting before section 101 the following:
‘‘SUBCHAPTER I—GENERAL PROVISIONS’’.
SEC. 1314. OFFICE OF INFRASTRUCTURE FINANCE.
(a) DUTIES OF THE SECRETARY.—Section 301 of title
49, United States Code, is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(9) develop and coordinate Federal policy on fi-
nancing transportation infrastructure, including the
provision of direct Federal credit assistance and other
techniques used to leverage Federal transportation
funds.’’.
(b) OFFICE OF INFRASTRUCTURE FINANCE.—
(1) IN GENERAL.—Chapter 1 of title 49, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 113. Office of Infrastructure Finance
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish within the Office of the Secretary an
Office of Infrastructure Finance.
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‘‘(b) DIRECTOR.—The Office shall be headed by a Di-
rector who shall be appointed by the Secretary not later
than 180 days after the date of enactment of this section.
‘‘(c) FUNCTIONS.—The Director shall be responsible
for—
‘‘(1) carrying out the responsibilities of the Sec-
retary described in section 301(9);
‘‘(2) carrying out research on financing trans-
portation infrastructure, including educational pro-
grams and other initiatives to support Federal, State,
and local government efforts; and
‘‘(3) providing technical assistance to Federal,
State, and local government agencies and officials to
facilitate the development and use of alternative tech-
niques for financing transportation infrastructure.’’.
(2) CONFORMING AMENDMENT.—The analysis for
chapter 1 of title 49, United States Code, is amended
by adding at the end the following:
‘‘113. Office of Infrastructure Finance.’’.
Subtitle D—Safety
SEC. 1401. OPERATION LIFESAVER.
Section 104 of title 23, United States Code (as amend-
ed by section 1102(a)), is amended—
(1) in the matter preceding paragraph (1) of
subsection (b), by striking ‘‘subsection (f)’’ and insert-
ing ‘‘subsections (d) and (f)’’; and
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(2) in subsection (d), by striking paragraph (1)
and inserting the following:
‘‘(1) OPERATION LIFESAVER.—Before making an
apportionment of funds under subsection (b)(3) for a
fiscal year, the Secretary shall set aside $500,000 of
the funds made available for the surface transpor-
tation program for the fiscal year to carry out a pub-
lic information and education program to help pre-
vent and reduce motor vehicle accidents, injuries, and
fatalities and to improve driver performance at rail-
way-highway crossings.’’.
SEC. 1402. RAILWAY-HIGHWAY CROSSING HAZARD ELIMI-
NATION IN HIGH SPEED RAIL CORRIDORS.
Section 104(d) of title 23, United States Code, is
amended by striking paragraphs (2) and (3) and inserting
the following:
‘‘(2) 
RAILWAY-HIGHWAY
CROSSING
HAZARD
ELIMINATION IN HIGH SPEED RAIL CORRIDORS.—
‘‘(A) IN GENERAL.—Before making an ap-
portionment of funds under subsection (b)(3) for
a fiscal year, the Secretary shall set aside
$5,000,000 of the funds made available for the
surface transportation program for the fiscal
year for elimination of hazards of railway-high-
way crossings.
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‘‘(B) ELIGIBLE CORRIDORS.—Funds made
available under subparagraph (A) shall be ex-
pended for projects in—
‘‘(i) 5 railway corridors selected by the
Secretary in accordance with this subsection
(as in effect on the day before the date of en-
actment of this clause);
‘‘(ii) 3 railway corridors selected by
the Secretary in accordance with subpara-
graphs (C) and (D); and
‘‘(iii) a Gulf Coast high speed railway
corridor (as designated by the Secretary).
‘‘(C) REQUIRED INCLUSION OF HIGH SPEED
RAIL
LINES.—A corridor selected by the Sec-
retary under subparagraph (B) shall include rail
lines where railroad speeds of 90 miles or more
per hour are occurring or can reasonably be ex-
pected to occur in the future.
‘‘(D) CONSIDERATIONS IN CORRIDOR SELEC-
TION.—In selecting corridors under subpara-
graph (B), the Secretary shall consider—
‘‘(i) projected rail ridership volume in
each corridor;
‘‘(ii) the percentage of each corridor
over which a train will be capable of oper-
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ating at its maximum cruise speed taking
into account such factors as topography and
other traffic on the line;
‘‘(iii) projected benefits to nonriders
such as congestion relief on other modes of
transportation serving each corridor (in-
cluding congestion in heavily traveled air
passenger corridors);
‘‘(iv) the amount of State and local fi-
nancial support that can reasonably be an-
ticipated for the improvement of the line
and related facilities; and
‘‘(v) the cooperation of the owner of the
right-of-way that can reasonably be expected
in the operation of high speed rail passenger
service in each corridor.
‘‘(E)(i) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
$15,000,000 in each of fiscal years 1998 through
2003 to carry out this subsection.
‘‘(ii) AVAILABILITY.—Notwithstanding sec-
tion 118(a), funds made available under clause
(i) shall not be available in advance of an an-
nual appropriation.’’.
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SEC. 1403. RAILWAY-HIGHWAY CROSSINGS.
Section 130 of title 23, United States Code, is amend-
ed—
(1) in the first sentence of subsection (a)—
(A) by striking ‘‘structures, and’’ and in-
serting ‘‘structures,’’; and
(B) by inserting after ‘‘grade crossings,’’ the
following: ‘‘trespassing countermeasures in the
immediate vicinity of a public railway-highway
grade crossing, railway-highway crossing safety
education, enforcement of traffic laws relating to
railway-highway crossing safety, and projects at
privately owned railway-highway crossings if
each such project is publicly sponsored and the
Secretary determines that the project would serve
a public benefit,’’;
(2) in subsection (d), by adding at the end the
following: ‘‘In a manner established by the Secretary,
each State shall submit a report that describes com-
pleted railway-highway crossing projects funded
under this section to the Department of Transpor-
tation for inclusion in the National Grade Crossing
Inventory prepared by the Department of Transpor-
tation and the Association of American Railroads.’’;
and
(3) by striking subsection (e).
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SEC. 1404. HAZARD ELIMINATION PROGRAM.
(a) IN GENERAL.—Section 152 of title 23, United
States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘(a) Each’’ and inserting
the following:
‘‘(a) IN GENERAL.—
‘‘(1) PROGRAM.—Each’’;
(B) by inserting ‘‘, bicyclists,’’ after ‘‘motor-
ists’’; and
(C) by adding at the end the following:
‘‘(2) HAZARDS.—In carrying out paragraph (1),
a State may, at its discretion—
‘‘(A) identify through a survey hazards to
motorists, bicyclists, pedestrians, and users of
highway facilities; and
‘‘(B) develop and implement projects and
programs to address the hazards.’’;
(2) in subsection (b), by striking ‘‘highway safety
improvement project’’ and inserting ‘‘safety improve-
ment project, including a project described in sub-
section (a)’’; and
(3) in subsection (c), by striking ‘‘on any public
road (other than a highway on the Interstate Sys-
tem).’’ and inserting the following: ‘‘on—
‘‘(1) any public road;
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‘‘(2) any public transportation vehicle or facil-
ity, any publicly owned bicycle or pedestrian path-
way or trail, or any other facility that the Secretary
determines to be appropriate; or
‘‘(3) any traffic calming measure.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 101(a) of title 23, United States
Code, is amended—
(A) in the undesignated paragraph defining
‘‘highway safety improvement project’’, by strik-
ing ‘‘highway safety’’ and inserting ‘‘safety’’;
and
(B) by moving that undesignated para-
graph to appear before the undesignated para-
graph defining ‘‘Secretary’’.
(2) Section 152 of title 23, United States Code,
is amended in subsections (f) and (g) by striking
‘‘highway safety improvement projects’’ each place it
appears and inserting ‘‘safety improvement projects’’.
SEC. 1405. MINIMUM PENALTIES FOR REPEAT OFFENDERS
FOR DRIVING WHILE INTOXICATED OR DRIV-
ING UNDER THE INFLUENCE.
(a) IN GENERAL.—Chapter 1 of title 23, United States
Code (as amended by section 1301(a)), is amended by add-
ing at the end the following:
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‘‘§ 163. Minimum penalties for repeat offenders for
driving 
while 
intoxicated 
or 
driving
under the influence
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ALCOHOL CONCENTRATION.—The term ‘al-
cohol concentration’ means grams of alcohol per 100
milliliters of blood or grams of alcohol per 210 liters
of breath.
‘‘(2) DRIVING
WHILE
INTOXICATED; DRIVING
UNDER THE INFLUENCE.—The terms ‘driving while
intoxicated’ and ‘driving under the influence’ mean
driving or being in actual physical control of a motor
vehicle while having an alcohol concentration above
the permitted limit as established by each State.
‘‘(3) LICENSE SUSPENSION.—The term ‘license
suspension’ means the suspension of all driving privi-
leges.
‘‘(4) MOTOR VEHICLE.—The term ‘motor vehicle’
means a vehicle driven or drawn by mechanical
power and manufactured primarily for use on public
highways, but does not include a vehicle operated sole-
ly on a rail line or a commercial vehicle.
‘‘(5) REPEAT INTOXICATED DRIVER LAW.—The
term ‘repeat intoxicated driver law’ means a State
law that provides, as a minimum penalty, that an
individual convicted of a second or subsequent offense
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for driving while intoxicated or driving under the in-
fluence after a previous conviction for that offense
shall—
‘‘(A) receive a driver’s license suspension for
not less than 1 year;
‘‘(B) be subject to the impoundment or im-
mobilization of each of the individual’s motor ve-
hicles or the installation of an ignition interlock
system on each of the motor vehicles;
‘‘(C) receive an assessment of the individ-
ual’s degree of abuse of alcohol and treatment as
appropriate; and
‘‘(D) receive—
‘‘(i) in the case of the second offense—
‘‘(I) an assignment of not less
than 30 days of community service; or
‘‘(II) not less than 5 days of im-
prisonment; and
‘‘(ii) in the case of the third or subse-
quent offense—
‘‘(I) an assignment of not less
than 60 days of community service; or
‘‘(II) not less than 10 days of im-
prisonment.
‘‘(b) TRANSFER OF FUNDS.—
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‘‘(1) FISCAL YEARS 2001 AND 2002.—
‘‘(A) IN
GENERAL.—On October 1, 2000,
and October 1, 2001, if a State has not enacted
or is not enforcing a repeat intoxicated driver
law, the Secretary shall transfer an amount
equal to 11⁄2 percent of the funds apportioned to
the State on that date under paragraphs (1) and
(3) of section 104(b) to the apportionment of the
State under section 402—
‘‘(i) to be used for alcohol-impaired
driving countermeasures; or
‘‘(ii) to be directed to State and local
law enforcement agencies for enforcement of
laws prohibiting driving while intoxicated
or driving under the influence and other re-
lated laws (including regulations), includ-
ing the purchase of equipment, the training
of officers, and the use of additional person-
nel for specific alcohol-impaired driving
countermeasures, dedicated to enforcement
of the laws (including regulations).
‘‘(B) DERIVATION
OF
AMOUNT
TO
BE
TRANSFERRED.—An amount transferred under
subparagraph (A) may be derived—
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‘‘(i) from the apportionment of the
State under section 104(b)(1);
‘‘(ii) from the apportionment of the
State under section 104(b)(3); or
‘‘(iii) partially from the apportion-
ment of the State under section 104(b)(1)
and partially from the apportionment of the
State under section 104(b)(3).
‘‘(2) FISCAL
YEAR
2003
AND
FISCAL
YEARS
THEREAFTER.—
‘‘(A) IN
GENERAL.—On October 1, 2002,
and each October 1 thereafter, if a State has not
enacted or is not enforcing a repeat intoxicated
driver law, the Secretary shall transfer 3 percent
of the funds apportioned to the State on that
date under each of paragraphs (1) and (3) of sec-
tion 104(b) to the apportionment of the State
under section 402—
‘‘(i) to be used for alcohol-impaired
driving countermeasures; or
‘‘(ii) to be directed to State and local
law enforcement agencies for enforcement of
laws prohibiting driving while intoxicated
or driving under the influence and other re-
lated laws (including regulations), includ-
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ing the purchase of equipment, the training
of officers, and the use of additional person-
nel for specific alcohol-impaired driving
countermeasures, dedicated to enforcement
of the laws (including regulations).
‘‘(B) DERIVATION
OF
AMOUNT
TO
BE
TRANSFERRED.—An amount transferred under
subparagraph (A) may be derived—
‘‘(i) from the apportionment of the
State under section 104(b)(1);
‘‘(ii) from the apportionment of the
State under section 104(b)(3); or
‘‘(iii) partially from the apportion-
ment of the State under section 104(b)(1)
and partially from the apportionment of the
State under section 104(b)(3).
‘‘(3) FEDERAL SHARE.—The Federal share of the
cost of a project carried out under section 402 with
funds transferred under paragraph (1) or (2) shall be
100 percent.
‘‘(4) TRANSFER OF OBLIGATION AUTHORITY.—
‘‘(A) IN GENERAL.—If the Secretary trans-
fers under this subsection any funds to the ap-
portionment of a State under section 402 for a
fiscal year, the Secretary shall transfer an
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amount, determined under subparagraph (B), of
obligation authority distributed for the fiscal
year to the State for Federal-aid highways and
highway safety construction programs for carry-
ing out projects under section 402.
‘‘(B) AMOUNT.—The amount of obligation
authority referred to in subparagraph (A) shall
be determined by multiplying—
‘‘(i) the amount of funds transferred
under subparagraph (A) to the apportion-
ment of the State under section 402 for the
fiscal year; by
‘‘(ii) the ratio that—
‘‘(I) the amount of obligation au-
thority distributed for the fiscal year to
the State for Federal-aid highways and
highway safety construction programs;
bears to
‘‘(II) the total of the sums appor-
tioned to the State for Federal-aid
highways and highway safety construc-
tion programs (excluding sums not
subject to any obligation limitation)
for the fiscal year.
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‘‘(5) LIMITATION ON APPLICABILITY OF HIGHWAY
SAFETY
OBLIGATIONS.—Notwithstanding any other
provision of law, no limitation on the total of obliga-
tions for highway safety programs under section 402
shall apply to funds transferred under this subsection
to the apportionment of a State under that section.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code (as amended by
section 1301(b)), is amended by adding at the end the fol-
lowing:
‘‘163. Minimum penalties for repeat offenders for driving while intoxicated or
driving under the influence.’’.
SEC. 1406. SAFETY INCENTIVE GRANTS FOR USE OF SEAT
BELTS.
(a) IN GENERAL.—Chapter 1 of title 23, United States
Code (as amended by section 1405(a)), is amended by add-
ing at the end the following:
‘‘§ 164. Safety incentive grants for use of seat belts
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) MOTOR VEHICLE.—The term ‘motor vehicle’
means a vehicle driven or drawn by mechanical
power and manufactured primarily for use on public
highways, but does not include a vehicle operated sole-
ly on a rail line.
‘‘(2) MULTIPURPOSE PASSENGER MOTOR VEHI-
CLE.—The term ‘multipurpose passenger motor vehi-
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cle’ means a motor vehicle with motive power (except
a trailer), designed to carry not more than 10 indi-
viduals, that is constructed on a truck chassis or is
constructed with special features for occasional off-
road operation.
‘‘(3) NATIONAL
AVERAGE
SEAT
BELT
USE
RATE.—The term ‘national average seat belt use rate’
means, in the case of each of calendar years 1995
through 2001, the national average seat belt use rate
for that year, as determined by the Secretary.
‘‘(4) PASSENGER CAR.—The term ‘passenger car’
means a motor vehicle with motive power (except a
multipurpose passenger motor vehicle, motorcycle, or
trailer) designed to carry not more than 10 individ-
uals.
‘‘(5) PASSENGER
MOTOR
VEHICLE.—The term
‘passenger motor vehicle’ means a passenger car or a
multipurpose passenger motor vehicle.
‘‘(6) SAVINGS TO THE FEDERAL GOVERNMENT.—
The term ‘savings to the Federal Government’ means
the amount of Federal budget savings relating to Fed-
eral medical costs (including savings under the medi-
care and medicaid programs under titles XVIII and
XIX of the Social Security Act (42 U.S.C. 1395 et
seq.)), as determined by the Secretary.
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‘‘(7) SEAT BELT.—The term ‘seat belt’ means—
‘‘(A) with respect to an open-body passenger
motor vehicle, including a convertible, an occu-
pant restraint system consisting of a lap belt or
a lap belt and a detachable shoulder belt; and
‘‘(B) with respect to any other passenger
motor vehicle, an occupant restraint system con-
sisting of integrated lap and shoulder belts.
‘‘(8) STATE SEAT BELT USE RATE.—The term
‘State seat belt use rate’ means the rate of use of seat
belts in passenger motor vehicles in a State, as meas-
ured and submitted to the Secretary—
‘‘(A) for each of calendar years 1995
through 1997, by the State, as adjusted by the
Secretary to ensure national consistency in
methods of measurement (as determined by the
Secretary); and
‘‘(B) for each of calendar years 1998
through 2001, by the State in a manner consist-
ent with the criteria established by the Secretary
under subsection (e).
‘‘(b) DETERMINATIONS
BY
THE SECRETARY.—Not
later than 30 days after the date of enactment of this sec-
tion, and not later than September 1 of each calendar year
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thereafter through September 1, 2002, the Secretary shall
determine—
‘‘(1)(A) which States had, for each of the pre-
vious calendar years (referred to in this subsection as
the ‘previous calendar year’) and the year preceding
the previous calendar year, a State seat belt use rate
greater than the national average seat belt use rate
for that year; and
‘‘(B) in the case of each State described in sub-
paragraph (A), the amount that is equal to the sav-
ings to the Federal Government due to the amount by
which the State seat belt use rate for the previous cal-
endar year exceeds the national average seat belt use
rate for that year; and
‘‘(2) in the case of each State that is not a State
described in paragraph (1)(A)—
‘‘(A) the base seat belt use rate of the State,
which shall be equal to the highest State seat belt
use rate for the State for any calendar year dur-
ing the period of 1995 through the calendar year
preceding the previous calendar year; and
‘‘(B) the amount that is equal to the savings
to the Federal Government due to any increase
in the State seat belt use rate for the previous
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calendar year over the base seat belt use rate de-
termined under subparagraph (A).
‘‘(c) ALLOCATIONS.—
‘‘(1) STATES
WITH
GREATER
THAN
THE
NA-
TIONAL AVERAGE SEAT BELT USE RATE.—Not later
than 30 days after the date of enactment of this sec-
tion, and not later than each October 1 thereafter
through October 1, 2002, the Secretary shall allocate
to each State described in subsection (b)(1)(A) an
amount equal to the amount determined for the State
under subsection (b)(1)(B).
‘‘(2) OTHER STATES.—Not later than 30 days
after the date of enactment of this section, and not
later than each October 1 thereafter through October
1, 2002, the Secretary shall allocate to each State de-
scribed in subsection (b)(2) an amount equal to the
amount determined for the State under subsection
(b)(2)(B).
‘‘(d) USE OF FUNDS.—For each fiscal year, each State
that is allocated an amount under this section shall use the
amount for projects eligible for assistance under this title.
‘‘(e) CRITERIA.—Not later than 180 days after the date
of enactment of the Intermodal Surface Transportation Ef-
ficiency Act of 1998, the Secretary shall establish criteria
for the measurement of State seat belt use rates by States
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to ensure that the measurements are accurate and represent-
ative.
‘‘(f) FUNDING.—
‘‘(1) AUTHORIZATION
OF
CONTRACT
AUTHOR-
ITY.—There shall be available from the Highway
Trust Fund (other than the Mass Transit Account) to
carry out this section $60,000,000 for fiscal year
1998, $70,000,000 for fiscal year 1999, $80,000,000
for fiscal year 2000, $90,000,000 for fiscal year 2001,
and $100,000,000 for each of fiscal years 2002 and
2003.
‘‘(2) PROPORTIONATE ADJUSTMENT.—If the total
amounts to be allocated under subsection (c) for any
fiscal year would exceed the amounts authorized for
the fiscal year under paragraph (1), the allocation to
each State under subsection (c) shall be reduced pro-
portionately.
‘‘(3) USE OF UNALLOCATED FUNDS.—To the ex-
tent that the amounts made available for any fiscal
year under paragraph (1) exceed the total amounts to
be allocated under subsection (c) for the fiscal year,
the excess amounts shall be allocated as follows:
‘‘(A) 50 percent to be apportioned to the
States in the same manner in which funds are
apportioned under section 402(c).
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‘‘(B) 50 percent to be allocated by the Sec-
retary under section 403 through cooperative
agreements with States to carry out innovative
programs to promote increased seat belt use
rates.
‘‘(4) ADMINISTRATIVE
EXPENSES.—Not more
than 2 percent of the funds made available to carry
out this section may be used to pay the necessary ad-
ministrative expenses incurred in carrying out this
section.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code (as amended by
section 1405(b)), is amended by adding at the end the fol-
lowing:
‘‘164. Safety incentive grants for use of seat belts.’’.
SEC. 1407. AUTOMATIC CRASH PROTECTION UNBELTED
TESTING STANDARD.
(a) IN GENERAL.—
(1) TESTING WITH SIMULTANEOUS USE.—Begin-
ning on the date of enactment of this Act, for the pur-
pose of certification under section 30115 of title 49,
United States Code, of compliance with the motor ve-
hicle safety standards under section 30111 of that
title, a manufacturer or distributor of a motor vehicle
shall be deemed to be in compliance with applicable
performance standards for occupant crash protection
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if the motor vehicle meets the applicable requirements
for testing with the simultaneous use of both an auto-
matic restraint system and a manual seat belt.
(2) PROHIBITION.—In no case shall a manufac-
turer or distributor use, for the purpose of the certifi-
cation referred to in paragraph (1), testing that pro-
vides for the use of an automatic restraint system
without the use of a manual seat belt.
(b) REVISION OF STANDARDS.—The Secretary shall
issue such revised standards under section 30111 of title
49, United States Code, as are necessary to conform to sub-
section (a).
SEC. 1408. NATIONAL STANDARD TO PROHIBIT OPERATION
OF MOTOR VEHICLES BY INTOXICATED INDI-
VIDUALS.
(a) IN GENERAL.—Chapter 1 of title 23, United States
Code, is amended by inserting after section 153 the follow-
ing:
‘‘§ 154. National standard to prohibit operation of
motor vehicles by intoxicated individuals
‘‘(a) WITHHOLDING OF APPORTIONMENTS FOR NON-
COMPLIANCE.—
‘‘(1) FISCAL
YEAR
2002.—The Secretary shall
withhold 5 percent of the amount required to be ap-
portioned to any State under each of paragraphs
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(1)(A), (1)(C), and (3) of section 104(b) on October
1, 2001, if the State does not meet the requirements
of paragraph (3) on that date.
‘‘(2) SUBSEQUENT
FISCAL
YEARS.—The Sec-
retary shall withhold 10 percent (including any
amounts withheld under paragraph (1)) of the
amount required to be apportioned to any State
under each of paragraphs (1)(A), (1)(C), and (3) of
section 104(b) on October 1, 2002, and on October 1
of each fiscal year thereafter, if the State does not
meet the requirements of paragraph (3) on that date.
‘‘(3) REQUIREMENTS.—A State meets the re-
quirements of this paragraph if the State has enacted
and is enforcing a law providing that an individual
who has an alcohol concentration of 0.08 percent or
greater while operating a motor vehicle in the State
is guilty of the offense of driving while intoxicated (or
an equivalent offense that carries the greatest penalty
under the law of the State for operating a motor vehi-
cle after having consumed alcohol).
‘‘(b) PERIOD OF AVAILABILITY; EFFECT OF COMPLI-
ANCE AND NONCOMPLIANCE.—
‘‘(1) PERIOD
OF
AVAILABILITY
OF
WITHHELD
FUNDS.—
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‘‘(A) FUNDS
WITHHELD
ON
OR
BEFORE
SEPTEMBER 30, 2003.—Any funds withheld under
subsection (a) from apportionment to any State
on or before September 30, 2003, shall remain
available until the end of the third fiscal year
following the fiscal year for which the funds are
authorized to be appropriated.
‘‘(B) FUNDS WITHHELD AFTER SEPTEMBER
30, 2003.—No funds withheld under this section
from apportionment to any State after Septem-
ber 30, 2003, shall be available for apportion-
ment to the State.
‘‘(2) APPORTIONMENT
OF
WITHHELD
FUNDS
AFTER COMPLIANCE.—If, before the last day of the pe-
riod for which funds withheld under subsection (a)
from apportionment are to remain available for ap-
portionment to a State under paragraph (1)(A), the
State meets the requirements of subsection (a)(3), the
Secretary shall, on the first day on which the State
meets the requirements, apportion to the State the
funds withheld under subsection (a) that remain
available for apportionment to the State.
‘‘(3) PERIOD
OF
AVAILABILITY
OF
SUBSE-
QUENTLY APPORTIONED FUNDS.—
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‘‘(A) IN GENERAL.—Any funds apportioned
under paragraph (2) shall remain available for
expenditure until the end of the third fiscal year
following the fiscal year in which the funds are
so apportioned.
‘‘(B) TREATMENT
OF
CERTAIN
FUNDS.—
Sums not obligated at the end of the period re-
ferred to in subparagraph (A) shall—
‘‘(i) lapse; or
‘‘(ii) in the case of funds apportioned
under section 104(b)(1)(A), lapse and be
made available by the Secretary for projects
in accordance with section 118.
‘‘(4) EFFECT
OF
NONCOMPLIANCE.—If, at the
end of the period for which funds withheld under sub-
section (a) from apportionment are available for ap-
portionment to a State under paragraph (1)(A), the
State does not meet the requirements of subsection
(a)(3), the funds shall—
‘‘(A) lapse; or
‘‘(B) in the case of funds withheld from ap-
portionment under section 104(b)(1)(A), lapse
and be made available by the Secretary for
projects in accordance with section 118.’’.
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(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code, is amended by
inserting after the item relating to section 153 the following:
‘‘154. National standard to prohibit operation of motor vehicles by intoxicated in-
dividuals.’’.
SEC. 1409. OPEN CONTAINER LAWS.
(a) ESTABLISHMENT.—Chapter 1 of title 23, United
States Code, is amended by inserting after section 153 the
following:
‘‘§ 154. Open container requirements
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ALCOHOLIC
BEVERAGE.—The term ‘alco-
holic beverage’ has the meaning given the term in sec-
tion 158(c).
‘‘(2) MOTOR VEHICLE.—The term ‘motor vehicle’
means a vehicle driven or drawn by mechanical
power and manufactured primarily for use on public
highways, but does not include a vehicle operated ex-
clusively on a rail or rails.
‘‘(3) OPEN ALCOHOLIC BEVERAGE CONTAINER.—
The term ‘open alcoholic beverage container’ has the
meaning given the term in section 410(i).
‘‘(4) PASSENGER
AREA.—The term ‘passenger
area’ shall have the meaning given the term by the
Secretary by regulation.
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‘‘(b) WITHHOLDING OF APPORTIONMENTS FOR NON-
COMPLIANCE.—
‘‘(1) FISCAL
YEAR
2002.—The Secretary shall
withhold 5 percent of the amount required to be ap-
portioned to any State under each of paragraphs
(1)(A), (1)(C), and (3) of section 104(b) on October
1, 2001, if the State does not have in effect a law de-
scribed in paragraph (3) on that date.
‘‘(2) SUBSEQUENT
FISCAL
YEARS.—The Sec-
retary shall withhold 10 percent (including any
amounts withheld under paragraph (1)) of the
amount required to be apportioned to any State
under each of paragraphs (1)(A), (1)(C), and (3) of
section 104(b) on October 1, 2002, and on October 1
of each fiscal year thereafter, if the State does not
have in effect a law described in paragraph (3) on
that date.
‘‘(3) OPEN CONTAINER LAWS.—
‘‘(A) IN GENERAL.—For the purposes of this
section, each State shall have in effect a law that
prohibits the possession of any open alcoholic
beverage container, or the consumption of any
alcoholic beverage, in the passenger area of any
motor vehicle (including possession or consump-
tion by the driver of the vehicle) located on a
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public highway, or the right-of-way of a public
highway, in the State.
‘‘(B) 
MOTOR
VEHICLES
DESIGNED
TO
TRANSPORT
MANY
PASSENGERS.—For the pur-
poses of this section, if a State has in effect a
law that makes unlawful the possession of any
open alcoholic beverage container in the pas-
senger area by the driver (but not by a pas-
senger) of a motor vehicle designed, maintained,
or used primarily for the transportation of per-
sons for compensation, or to the living quarters
of a house coach or house trailer, the State shall
be deemed to have in effect a law described in
this subsection with respect to such a motor vehi-
cle for each fiscal year during which the law is
in effect.
‘‘(c) PERIOD OF AVAILABILITY; EFFECT OF COMPLI-
ANCE AND NONCOMPLIANCE.—
‘‘(1) PERIOD
OF
AVAILABILITY
OF
WITHHELD
FUNDS.—
‘‘(A) FUNDS
WITHHELD
ON
OR
BEFORE
SEPTEMBER 30, 2003.—Any funds withheld under
subsection (b) from apportionment to any State
on or before September 30, 2003, shall remain
available until the end of the third fiscal year
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following the fiscal year for which the funds are
authorized to be appropriated.
‘‘(B) FUNDS WITHHELD AFTER SEPTEMBER
30, 2003.—No funds withheld under this section
from apportionment to any State after Septem-
ber 30, 2003, shall be available for apportion-
ment to the State.
‘‘(2) APPORTIONMENT
OF
WITHHELD
FUNDS
AFTER COMPLIANCE.—If, before the last day of the pe-
riod for which funds withheld under subsection (b)
from apportionment are to remain available for ap-
portionment to a State under paragraph (1)(A), the
State has in effect a law described in subsection
(b)(3), the Secretary shall, on the first day on which
the State has in effect such a law, apportion to the
State the funds withheld under subsection (b) that re-
main available for apportionment to the State.
‘‘(3) PERIOD
OF
AVAILABILITY
OF
SUBSE-
QUENTLY APPORTIONED FUNDS.—
‘‘(A) IN GENERAL.—Any funds apportioned
under paragraph (2) shall remain available for
expenditure until the end of the third fiscal year
following the fiscal year in which the funds are
so apportioned.
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‘‘(B) TREATMENT
OF
CERTAIN
FUNDS.—
Sums not obligated at the end of the period re-
ferred to in subparagraph (A) shall—
‘‘(i) lapse; or
‘‘(ii) in the case of funds apportioned
under section 104(b)(1)(A), lapse and be
made available by the Secretary for projects
in accordance with section 118.
‘‘(4) EFFECT
OF
NONCOMPLIANCE.—If, at the
end of the period for which funds withheld under sub-
section (b) from apportionment are available for ap-
portionment to a State under paragraph (1)(A), the
State does not have in effect a law described in sub-
section (b)(3), the funds shall—
‘‘(A) lapse; or
‘‘(B) in the case of funds withheld from ap-
portionment under section 104(b)(1)(A), lapse
and be made available by the Secretary for
projects in accordance with section 118.’’.
(b) CONFORMING
AMENDMENT.—The analysis for
chapter 1 of title 23, United States Code, is amended by
inserting after the item relating to section 153 the following:
‘‘154. Open container requirements.’’.
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‘‘(3) CONTENTS.—The plans and programs for
each metropolitan area shall provide for the develop-
ment and integrated management and operation of
transportation systems and facilities (including pe-
destrian walkways and bicycle transportation facili-
ties) that will function as an intermodal transpor-
tation system for the metropolitan area and as an in-
tegral part of an intermodal transportation system
for the State and the United States.
‘‘(4) PROCESS.—The process for developing the
plans and programs shall provide for consideration of
all modes of transportation and shall be continuing,
cooperative, and comprehensive to the degree appro-
priate, based on the complexity of the transportation
problems to be addressed.
‘‘(b) DESIGNATION OF METROPOLITAN PLANNING OR-
GANIZATIONS.—
‘‘(1) IN GENERAL.—To carry out the transpor-
tation planning process required by this section, a
metropolitan planning organization shall be des-
ignated for each urbanized area with a population of
more than 50,000 individuals—
‘‘(A) by agreement between the Governor
and units of general purpose local government
that together represent at least 75 percent of the
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‘‘(B) DESIGNATIONS
ON
REQUEST.—The
Secretary shall designate any additional area as
a transportation management area on the re-
quest of the Governor and the metropolitan plan-
ning organization designated for the area.
‘‘(2) TRANSPORTATION PLANS AND PROGRAMS.—
Within a transportation management area, transpor-
tation plans and programs shall be based on a con-
tinuing and comprehensive transportation planning
process carried out by the metropolitan planning or-
ganization in cooperation with the State and any af-
fected public transit operator.
‘‘(3) CONGESTION MANAGEMENT SYSTEM.—With-
in a transportation management area, the transpor-
tation planning process under this section shall in-
clude a congestion management system that provides
for effective management of new and existing trans-
portation facilities eligible for funding under this title
and chapter 53 of title 49 through the use of travel
demand reduction and operational management strat-
egies.
‘‘(4) SELECTION OF PROJECTS.—
‘‘(A) IN
GENERAL.—In addition to the
transportation improvement program develop-
ment required under subsection (h)(1), all feder-