500
HR 2400 RDS
frastructure system for the measurement of
various transportation system activities to aid
in the transportation planning and analysis
while making a significant contribution to the
ITS program under this title. This program
shall be located in the 2 largest metropolitan
areas in the State of Pennsylvania.
(B) FUNDING.—Of the amounts made
available for each of fiscal years 1998 through
2003 by section 127(a)(3)(H) of this Act,
$1,700,000 per fiscal year shall be available to
carry out this paragraph.
(C) FEDERAL SHARE.—The Federal share
payable on account of the program carried out
under this paragraph shall be 80 percent of the
cost of such program.
(13) CORROSION CONTROL AND PREVENTION.—
(A) IN
GENERAL.—The Secretary shall
make a grant to conduct a study on the costs
and benefits of corrosion control and preven-
tion. The study shall be conducted in conjunc-
tion with an interdisciplinary team of experts
from the fields of metallurgy, chemistry, eco-
nomics, and others, as appropriate. Not later
than September 30, 2001, the Secretary shall
501
HR 2400 RDS
submit to Congress a report on the study re-
sults, together with any recommendations.
(B) FUNDING.—Of the amounts made
available for each of fiscal years 1999 and 2000
by section 127(a)(3)(H) of this Act, $500,000
per fiscal year shall be available to carry out
this paragraph.
(14) RECYCLED MATERIALS.—
(A) IN
GENERAL.—The Secretary shall
make grants to the University of New Hamp-
shire to continue research on the use of recycled
materials in the construction of transportation
projects.
(B) FUNDING.—Of the amounts made
available for each of fiscal years 1999 through
2003 by section 127(a)(3)(F) of this Act,
$1,000,000 per fiscal year shall be available to
carry out this paragraph.
(15) TRANSLINK.—
(A) IN
GENERAL.—The Secretary shall
make grants to the Texas Transportation Insti-
tute to continue the Translink Research pro-
gram.
(B) FUNDING.—Of the amounts allocated
for each of fiscal years 1999 through 2001
502
HR 2400 RDS
under section 657(a) of this Act, $1,300,000
per fiscal year shall be available to carry out
this paragraph.
(16) FUNDAMENTAL PROPERTIES OF ASPHALTS
AND MODIFIED ASPHALTS.—
(A) IN
GENERAL.—The Secretary shall
continue to carry out section 6016 of the Inter-
modal Surface Transportation Efficiency Act of
1991. Additional areas of the program under
such section shall be asphalt-water interaction
studies and asphalt-aggregate thin film behav-
ior studies.
(B) FUNDING.—Of the amounts made
available for each of fiscal years 1999 through
2003 by section 127(a)(3)(F) of this Act,
$3,000,000 per fiscal year shall be available to
carry out this paragraph.
(17) NATIONAL CENTER FOR TRANSPORTATION
MANAGEMENT, RESEARCH, AND DEVELOPMENT.—
(A) IN
GENERAL.—The Secretary shall
make grants to design, develop, and implement
research, training, and technology transfer ac-
tivities to increase the number of highly skilled
minority individuals and women entering the
transportation workforce. The grant recipient
503
HR 2400 RDS
shall be an institution with a predominantly mi-
nority student population, a dedicated graduate
degree program in transportation studies, and a
demonstrated record for at least 5 years in pur-
suing the objectives for which grants are au-
thorized by this subparagraph.
(B) FUNDING.—Of the amounts made
available by section 127(a)(3)(H) of this Act,
$1,000,000 shall be available to carry out this
paragraph for fiscal year 2000, $1,250,000 for
fiscal year 2001, $1,500,000 for fiscal year
2002, and $1,750,000 for fiscal year 2003.
(18) INFRASTRUCTURE
TECHNOLOGY
INSTI-
TUTE.—
(A) IN
GENERAL.—The Secretary shall
make grants to study techniques to evaluate
and monitor infrastructure conditions, to im-
prove information systems for infrastructure
construction and management, and to study ad-
vanced materials and automated processes for
constructing and rehabilitating public works fa-
cilities. The recipient shall be an institution
with a demonstrated record for at least 5 years
in pursuing the objectives for which grants are
authorized by this subparagraph.
504
HR 2400 RDS
(B) FUNDING.—Of the amounts made
available for each of fiscal years 2000 through
2003 by section 127(a)(3)(H) of this Act,
$3,000,000 per fiscal year shall be available to
carry out this paragraph.
SEC. 633. TRANSPORTATION RESEARCH AND TECHNOLOGY
DEVELOPMENT.
(a) IN GENERAL.—Subchapter I of chapter 55 of title
49, United States Code, is further amended by adding at
the end the following:
‘‘§ 5506. Surface transportation research planning
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall—
‘‘(1) establish a strategic planning process, con-
sistent with section 306 of title 5, United States
Code, for the Department of Transportation to de-
termine national transportation research and tech-
nology development priorities related to surface
transportation;
‘‘(2) coordinate Federal surface transportation
research and technology development activities;
‘‘(3) measure the results of those activities and
how they impact the performance of the national
surface transportation system; and
505
HR 2400 RDS
‘‘(4) ensure that planning and reporting activi-
ties carried out under this subchapter are coordi-
nated with all other surface transportation planning
and reporting requirements.
‘‘(b) IMPLEMENTATION.—The Secretary shall—
‘‘(1) provide for the integrated planning, coordi-
nation, and consultation among the operating ad-
ministrations, all other Federal agencies with re-
sponsibility for surface transportation research and
technology development, State and local govern-
ments, institutions of higher education, industry,
and other private and public sector organizations en-
gaged in surface transportation-related research and
development activities;
‘‘(2) ensure that the Department’s surface
transportation research and technology development
programs do not duplicate other Federal, State, or
private sector research and development programs;
and
‘‘(3) provide for independent validation of the
scientific and technical assumptions underlying the
Department’s surface transportation research and
technology development plans.
‘‘(c) SURFACE TRANSPORTATION RESEARCH
AND
TECHNOLOGY DEVELOPMENT STRATEGIC PLAN.—
506
HR 2400 RDS
‘‘(1) DEVELOPMENT.—The Secretary shall de-
velop an integrated surface transportation research
and technology development strategic plan.
‘‘(2) CONTENTS.—The plan shall include—
‘‘(A) an identification of the general goals
and objectives of the Department of Transpor-
tation for surface transportation research and
development;
‘‘(B) a description of the roles of the De-
partment of Transportation and other Federal
agencies in achieving the goals identified under
subparagraph (A), in order to avoid unneces-
sary duplication of effort;
‘‘(C) a description of the Department’s
overall strategy, and the role of each of the op-
erating administrations in carrying out the plan
over the next 5 years including a description of
procedures for coordination of its efforts with
the operating administrations and with other
Federal agencies;
‘‘(D) an assessment of how State and local
research and technology development activities
are contributing to the achievement of the goals
identified under subparagraph (A);
507
HR 2400 RDS
‘‘(E) details of the Department’s surface
transportation research and technology develop-
ment programs, including performance goals,
resources needed to achieve those goals, and
performance indicators as described in section
1115(a) of title 31, United States Code, for the
next 5 years for each area of research and tech-
nology development;
‘‘(F) significant comments on the plan and
its contents obtained from outside sources; and
‘‘(G) responses to significant comments ob-
tained from the National Research Council and
other advisory bodies, and a description of any
corrective actions taken pursuant thereto.
‘‘(3) NATIONAL RESEARCH COUNCIL REVIEW.—
The Secretary shall enter into an agreement for the
review by the National Research Council of the de-
tails of each—
‘‘(A) strategic plan or revision required
under section 306 of title 5, United States
Code;
‘‘(B) performance plan required under sec-
tion 1115 of title 31, United States Code; and
508
HR 2400 RDS
‘‘(C) program performance report required
under section 1116 of title 31, United States
Code,
with respect to surface transportation research and
technology development.
‘‘(4) PERFORMANCE PLANS AND REPORTS.—In
complying with sections 1115 and 1116 of title 31,
United States Code, the Secretary shall include—
‘‘(A) a summary of the results for the pre-
vious fiscal year of surface transportation re-
search and technology development programs to
which the Department of Transportation con-
tributes, along with—
‘‘(i) an analysis of the relationship be-
tween those results and the goals identified
under paragraph (2)(A); and
‘‘(ii) a description of the methodology
used for assessing the results; and
‘‘(B) a description of significant surface
transportation research and technology develop-
ment initiatives, if any, undertaken during the
previous fiscal year which were not in the plan
developed under paragraph (1), and any signifi-
cant changes in the plan from the previous
year’s plan.
509
HR 2400 RDS
‘‘(d) MERIT REVIEW AND PERFORMANCE MEASURE-
MENT.—The Secretary shall, within one year after the
date of the enactment of this section, transmit to the Con-
gress a report describing competitive merit review proce-
dures for research and technology development, and per-
formance measurement procedures for surface transpor-
tation research and technology development and dem-
onstrations.
‘‘(e) PROCUREMENT PROCEDURES.—The Secretary
shall—
‘‘(1) develop model procurement procedures
that encourage the use of advanced technologies; and
‘‘(2) develop model transactions for carrying
out and coordinating Federal and State surface
transportation research and technology development
activities.
‘‘(f) CONSISTENCY WITH GOVERNMENT PERFORM-
ANCE AND RESULTS ACT OF 1993.—The plans and re-
ports developed under this section shall be consistent with
and incorporated as part of the plans developed under sec-
tion 306 of title 5, United States Code, and sections 1115
and 1116 of title 31, United States Code.
510
HR 2400 RDS
‘‘§ 5507. Surface transportation-environment coopera-
tive research program
‘‘(a) IN GENERAL.—The Secretary of Transportation
shall establish and carry out a surface transportation and
environment cooperative research program.
‘‘(b) CONTENTS.—The program to be carried out
under this section shall include research designed to—
‘‘(1) develop more accurate models for evaluat-
ing transportation control measures and transpor-
tation system designs that are appropriate for use
by State and local governments, including metropoli-
tan planning organizations, in designing implemen-
tation plans to meet Federal, State, and local envi-
ronmental requirements;
‘‘(2) improve understanding of the factors that
contribute to the demand for transportation, includ-
ing transportation system design, demographic
change, land use planning, and communications and
other information technologies; and
‘‘(3) develop indicators of economic, social, and
environmental performance of transportation sys-
tems to facilitate analysis of potential alternatives.
‘‘(c) ADVISORY BOARD.—
‘‘(1) ESTABLISHMENT.—In consultation with
appropriate Federal agencies, the Secretary shall es-
tablish an advisory board to recommend environ-
511
HR 2400 RDS
mental and energy conservation research, tech-
nology, and technology transfer activities related to
surface transportation.
‘‘(2) MEMBERSHIP.—The advisory board shall
include—
‘‘(A) representatives of State transpor-
tation and environmental agencies;
‘‘(B) transportation and environmental sci-
entists and engineers; and
‘‘(C) representatives of metropolitan plan-
ning organizations, transit operating agencies,
and environmental organizations.
‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The Sec-
retary may make grants to, and enter into cooperative
agreements with, the National Academy of Sciences to
carry out such activities relating to the research, tech-
nology, and technology transfer activities described in sub-
section (b) as the Secretary determines to be appropriate.
‘‘(e) FUNDING.—Funding for carrying out this sec-
tion shall be derived from funds made available under sec-
tion 127(a)(3)(F) of the Building Efficient Surface Trans-
portation and Equity Act of 1998.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 55 of title 49, United States Code, is
513
HR 2400 RDS
SEC. 652. SCOPE OF PROGRAM.
(a) SCOPE.—Subject to the provisions of this subtitle,
the Secretary shall conduct an ongoing ITS program to
research, develop, and operationally test intelligent trans-
portation systems and advance nationwide deployment of
such systems as a component of the Nation’s surface
transportation systems.
(b) GOALS.—The goals of the ITS program include—
(1) enhancement of surface transportation effi-
ciency to enable existing facilities to meet a signifi-
cant portion of future transportation needs and to
reduce regulatory, financial, and other transaction
costs to public agencies and system users;
(2) enhancement of safe operation of motor ve-
hicles, including motorcycles, and nonmotorized vehi-
cles on the Nation’s surface transportation systems,
with a particular emphasis on decreasing the num-
ber and severity of collisions;
(3) protection and enhancement of the natural
environment and communities affected by surface
transportation, with particular emphasis on assisting
States to attain air quality goals established pursu-
ant to the Clean Air Act (42 U.S.C. 7401 et seq.);
(4) accommodation of the needs of all users of
the Nation’s surface transportation systems, includ-
ing the operators of commercial vehicles, passenger
514
HR 2400 RDS
vehicles, and motorcycles, and including the handi-
capped;
(5) improvement of public access to employ-
ment, goods, and services;
(6) development of a technology base and nec-
essary standards and protocols for intelligent trans-
portation systems;
(7) improvement of the Nation’s ability to re-
spond to emergencies and natural disasters and en-
hancement of national defense mobility;
(8) promotion of the access and use of data col-
lected from projects conducted under the program
by public and private organizations; and
(9) the development of a workforce capable of
developing, operating, and maintaining intelligent
transportation systems.
SEC. 653. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) COOPERATION
AND CONSULTATION REQUIRE-
MENTS.—
(1) COOPERATION WITH GOVERNMENTAL, PRI-
VATE, AND EDUCATIONAL ENTITIES.—The Secretary
shall carry out the ITS program in cooperation with
State and local governments and other public enti-
ties, the United States private sector, and colleges
and universities, including historically black colleges
515
HR 2400 RDS
and universities and other minority institutions of
higher education.
(2) CONSULTATION
WITH
FEDERAL
OFFI-
CIALS.—In carrying out the ITS program, the Sec-
retary, as appropriate, shall consult with the Sec-
retary of Commerce, the Secretary of the Treasury,
the Administrator of the Environmental Protection
Agency, the Director of the National Science Foun-
dation, and the heads of other Federal departments
and agencies.
(b) STANDARDS.—
(1) DEVELOPMENT OF NATIONAL ITS ARCHI-
TECTURE.—The Secretary shall develop, implement,
and maintain a national ITS architecture and stand-
ards and protocols to promote the widespread use
and evaluation of ITS technology as a component of
the Nation’s surface transportation systems.
(2) INTEROPERABILITY
AMONG
ITS
TECH-
NOLOGIES.—The national ITS architecture shall
promote interoperability among ITS technologies im-
plemented throughout the States.
(3) USE OF SERVICES OF STANDARDS-SETTING
ORGANIZATIONS.—In carrying out this subsection,
the Secretary may use the services of standards-set-
ting organizations.
516
HR 2400 RDS
(4) ESTABLISHMENT
OF
DEDICATED
SHORT-
RANGE
VEHICLE
TO
WAYSIDE
WIRELESS
STAND-
ARD.—In carrying out this subsection, the Secretary,
in consultation with the Secretary of Commerce, the
Secretary of Defense, and the Federal Communica-
tions Commission, shall take such actions as may be
necessary to secure the necessary spectrum for the
near-term establishment of a dedicated short-range
vehicle to wayside wireless standard.
(c) EVALUATIONS.—
(1) GUIDELINES
AND
REQUIREMENTS.—The
Secretary shall issue guidelines and requirements for
the evaluation of field and related operational tests
carried out under section 655 of this Act.
(2) OBJECTIVITY
AND
INDEPENDENCE.—The
guidelines and requirements issued under paragraph
(1) shall include provisions to ensure the objectivity
and independence of the evaluator and to avoid any
real or apparent conflict of interest or potential in-
fluence on the outcome by parties to the tests or any
other formal evaluation conducted under this sub-
title.
(d) INFORMATION CLEARINGHOUSE.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish and maintain a repository for technical and
517
HR 2400 RDS
safety data collected as a result of federally-spon-
sored projects under this subtitle and shall make,
upon request, such information (except for propri-
etary information and data) readily available to all
users of the repository at an appropriate cost.
(2) DELEGATION
OF
AUTHORITY.—The Sec-
retary may delegate the responsibility of the Sec-
retary under this subsection, with continuing over-
sight by the Secretary, to an appropriate entity that
is not within the Department of Transportation. Any
entity to which such responsibility is delegated shall
be eligible for Federal assistance under this subtitle.
(e) ADVISORY COMMITTEES.—
(1) IN GENERAL.—The Secretary may utilize 1
or more advisory committees in carrying out this
subtitle.
(2) APPLICABILITY
OF
FEDERAL
ADVISORY
COMMITTEE ACT.—Any advisory committee utilized
under this subsection shall be subject to the Federal
Advisory Committee Act (5 U.S.C. App., 86 Stat.
770).
(3) FUNDING.—Funding provided for an advi-
sory committee utilized under this subsection shall
be available from moneys appropriated for advisory
committees as specified in relevant appropriations
518
HR 2400 RDS
Acts and from funds allocated for research, develop-
ment, and implementation activities in connection
with the ITS program.
(f) CONFORMITY WITH STANDARDS.—
(1) IN GENERAL.—The Secretary shall ensure
that ITS projects carried out using funds made
available out of the Highway Trust Fund conform to
the national ITS architecture and standards and
protocols developed under subsection (b).
(2) EXCEPTION.—Paragraph (1) shall not
apply to projects carried out using funds authorized
for specific research objectives in the National ITS
Program Plan under section 654 of this Act.
(g) LIFE-CYCLE COST ANALYSIS.—The Secretary
shall require an analysis of the life-cycle costs of each
project carried out using funds made available under this
subtitle, and each project authorized in section 656 of this
Act, for operations and maintenance of ITS elements,
where the total initial capital costs of the such elements
exceed $3,000,000.
(h) PROCUREMENT METHODS.—
(1) TECHNICAL
ASSISTANCE.—The Secretary
shall develop appropriate technical assistance and
guidance to assist State and local agencies in evalu-
ating and selecting appropriate methods of procure-
519
HR 2400 RDS
ment for its projects carried out using funds made
available from the Highway Trust Fund, including
innovative and nontraditional methods of procure-
ment.
(2) ITS SOFTWARE.—To the maximum extent
practicable, contracting officials shall use as a criti-
cal evaluation criterion the Software Engineering In-
stitute’s Capability Maturity Model, or another simi-
lar recognized standard risk assessment methodol-
ogy, to reduce the cost, schedule, and performance
risks associated with the development, management,
and integration of ITS software.
SEC. 654. NATIONAL ITS PROGRAM PLAN.
(a) NATIONAL ITS PROGRAM PLAN.—
(1) UPDATES.—The Secretary shall maintain
and update, as necessary, the National ITS Program
Plan developed by the Department of Transportation
and the Intelligent Transportation Society of Amer-
ica.
(2) SCOPE.—The National ITS Program Plan
shall—
(A) specify the goals, objectives, and mile-
stones for the deployment of intelligent trans-
portation infrastructure in the context of major
metropolitan areas, smaller metropolitan and
520
HR 2400 RDS
rural areas, and commercial vehicle information
systems and networks;
(B) specify how specific programs and
projects relate to the goals, objectives, and mile-
stones referred to in subparagraph (A), includ-
ing consideration of the 5-, 10-, and 20-year
timeframes for the goals and objectives;
(C) establish a course of action necessary
to achieve the program’s goals and objectives;
(D) provide for the evolutionary develop-
ment of standards and protocols to promote
and ensure interoperability in the implementa-
tion of ITS technologies; and
(E) establish a cooperative process with
State and local governments for determining
desired surface transportation system perform-
ance levels and developing plans for national in-
corporation of specific ITS capabilities into sur-
face transportation systems.
(b) REPORTING.—The plan described in subsection
(a) shall be transmitted and updated as part of the plan
developed under section 5506 of title 49, United States
Code.
521
HR 2400 RDS
SEC. 655. TECHNICAL ASSISTANCE, PLANNING, RESEARCH,
AND OPERATIONAL TESTS.
(a) TECHNICAL ASSISTANCE, TRAINING, AND INFOR-
MATION.—The Secretary may provide technical assistance,
training, and information to State and local governments
seeking to implement, operate, maintain, and evaluate ITS
technologies and services.
(b) TRANSPORTATION PLANNING.—The Secretary
may provide funding to support adequate consideration of
transportation system management and operations, in-
cluding ITS, within metropolitan and statewide transpor-
tation planning processes.
(c) RESEARCH AND OPERATIONAL TESTS.—The Sec-
retary may provide funding for research and operational
tests relating to ITS. Such tests shall be designed for the
collection of data to permit objective evaluation of the re-
sults of the tests and the derivation of cost-benefit infor-
mation that is useful to others contemplating the deploy-
ment of similar systems.
(d) DEMONSTRATION AND EVALUATION OF INTEL-
LIGENT VEHICLE HIGHWAY SYSTEMS.—The Secretary
may conduct research and development activities for the
purpose of demonstrating integrated intelligent vehicle
highway systems and roadway safety systems. Such re-
search shall include state-of-the-art systems and shall inte-
grate collision avoidance, in-vehicle information, and other
522
HR 2400 RDS
safety related systems (including infrastructure-based sys-
tems). Development work—
(1) shall incorporate human factors research,
which may include research in the science of the
driving process, to improve the operational efficiency
and safety of intelligent transportation systems;
(2) may incorporate research on environmental,
weather, and natural conditions that impact intel-
ligent transportation systems, including the effects
of cold climates; and
(3) may incorporate materials or magnetics re-
search.
SEC. 656. ITS DEPLOYMENT.
(a) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE DEPLOYMENT INCENTIVES PROGRAM.—The Sec-
retary shall conduct a program to promote the deployment
of regionally integrated, intermodal intelligent transpor-
tation systems and, through financial and technical assist-
ance under this subtitle, shall assist in the development
and implementation of such systems.
(b) GOALS.—In accordance with the National ITS
Program Plan under section 654 of this Act, the Secretary
shall provide incentives for the deployment of integrated
applications of intermodal, intelligent transportation infra-
structure and system technologies to—
523
HR 2400 RDS
(1) stimulate sufficient deployment to validate
and accelerate the establishment of national ITS
standards and protocols;
(2) realize the benefits of regionally integrated,
intermodal deployment of intelligent transportation
infrastructure and commercial vehicle operations, in-
cluding electronic border crossing applications; and
(3) motivate innovative approaches to over-
coming non-technical constraints or impediments to
deployment.
(c) PROJECT SELECTION.—In order to be eligible for
funding under this section, a project shall—
(1) contribute to national deployment goals and
objectives outlined in the National ITS Program
Plan under section 654 of this Act;
(2) demonstrate a strong commitment to co-
operation among agencies, jurisdictions, and the pri-
vate sector, as evidenced by signed memorandums of
understanding that clearly define the responsibilities
and relation of all parties to a partnership arrange-
ment, including institutional relationships and finan-
cial agreements needed to support deployment, and
commitment to the criteria provided in paragraphs
(3) through (7);
524
HR 2400 RDS
(3) demonstrate commitment to a comprehen-
sive plan of fully integrated ITS deployment in ac-
cordance with the national ITS architecture and
standards and protocols established under section
653(b) of this Act;
(4) be part of approved plans and programs de-
veloped under applicable statewide and metropolitan
transportation planning processes and applicable
State air quality implementation plans, as appro-
priate, at the time Federal funds are sought;
(5) minimize the relative percentage and
amount of Federal contributions under this section
to total project costs;
(6) ensure continued, long-term operations and
maintenance without continued reliance on Federal
funding under this subtitle, along with documented
evidence of fiscal capacity and commitment from an-
ticipated public and private sources;
(7) demonstrate technical capacity for effective
operations and maintenance or commitment to ac-
quiring necessary skills; and
(8) identify the impacts on bicycle and pedes-
trian transportation and safety and evaluate options
to mitigate any adverse impacts on bicycle and pe-
destrian transportation and safety.
525
HR 2400 RDS
(d) FUNDING LIMITATIONS.—
(1) PROJECTS
IN
METROPOLITAN
AREAS.—
Funding under this section for intelligent transpor-
tation infrastructure projects in metropolitan areas
shall be limited to activities primarily necessary to
integrate intelligent transportation infrastructure
elements either deployed or to be deployed with
other sources of funds.
(2) OTHER PROJECTS.—For commercial vehicle
projects and projects outside metropolitan areas,
funding provided under this subtitle may also be
used for installation of intelligent transportation in-
frastructure elements.
(3) 
FISCAL
YEAR
LIMITATIONS.—Of 
the
amounts made available to carry out this section in
a fiscal year—
(A) not more than $15,000,000 may be
used for projects in a metropolitan area;
(B) not more than $2,000,000 may be
used for a project in a rural area;
(C) not more than $5,000,000 may be
used for a commercial vehicle information sys-
tem and network project; and
(D) not more than $35,000,000 may be
used for projects in a State.
526
HR 2400 RDS
(4) PRIORITIES.—In providing funding for
projects under this section, the Secretary shall allo-
cate—
(A) not less than 25 percent of the funds
made available to carry out this section to eligi-
ble State and local entities for the implementa-
tion of commercial vehicle information systems
and networks, and international border crossing
improvements, in support of public sector com-
mercial vehicle operations nationwide; and
(B) not less than 10 percent of such funds
for other intelligent transportation infrastruc-
ture deployment activities outside of metropoli-
tan areas.
SEC. 657. FUNDING ALLOCATIONS.
(a) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE DEPLOYMENT INCENTIVES PROGRAM.—
(1) ALLOCATION.—Of the amounts made avail-
able for each of fiscal years 1998 through 2003 by
section 127(a)(3)(I) of this Act, $75,000,000 per fis-
cal year shall be available to carry out section 656
of this Act.
(2) USE OF UNALLOCATED AMOUNTS.—In addi-
tion to amounts made available by subsection (b),
any amounts made available under paragraph (1)
527
HR 2400 RDS
and not allocated by the Secretary for carrying out
section 656 of this Act may be used by the Secretary
for carrying out other activities authorized under
this subtitle.
(b) ITS RESEARCH AND PROGRAM SUPPORT ACTIVI-
TIES.—Of the amounts made available for each of fiscal
years 1998 through 2003 by section 127(a)(3)(I) of this
Act, $100,000,000 per fiscal year shall be available to
carry out multi-year research and technology development
initiatives under this subtitle (other than projects under
section 656 of this Act).
(c) FEDERAL SHARE PAYABLE.—
(1) INTELLIGENT
TRANSPORTATION
INFRA-
STRUCTURE DEPLOYMENT INCENTIVES PROGRAM.—
For activities funded with amounts allocated under
subsection (a), the Federal share payable from such
amounts shall not exceed 50 percent of the costs of
the activities, and the total Federal share payable
from all eligible sources (including subsection (a))
shall not exceed 80 percent of the costs of the activi-
ties.
(2) OTHER PROGRAMS.—For activities funded
with amounts allocated under subsection (b), unless
the Secretary determines otherwise, the Federal
528
HR 2400 RDS
share payable on account of such activities shall not
exceed 80 percent of the costs of the activities.
(3) LONG-RANGE ACTIVITIES.—For long-range
activities undertaken in partnership with private en-
tities for the purposes of section 655(d) of this Act,
the Federal share payable from funds allocated
under this subtitle on account of such activities shall
not exceed 50 percent of the costs of the activities,
and the total Federal share payable from all eligible
sources (including subsection (a)) shall not exceed
80 percent of the costs of the activities.
(4) PARTICIPATION OF OTHER PUBLIC AND PRI-
VATE SOURCES.—The Secretary shall seek maximum
participation in the funding of activities under this
subtitle from other public and private sources, and
shall minimize the use of funds provided under this
subtitle for the construction or long-term acquisition
of buildings and grounds.
(d) ADVANCED TRAFFIC MONITORING
AND RE-
SPONSE CENTER.—
(1) IN GENERAL.—The Secretary shall make
grants to the Pennsylvania Transportation Institute,
in conjunction with the Pennsylvania Turnpike Com-
mission, to establish an advanced traffic monitoring
and emergency response center at Letterkenny Army
529
HR 2400 RDS
Depot in Chambersburg, Pennsylvania. The center
shall help develop and coordinate traffic monitoring
and ITS systems on the entire Pennsylvania Turn-
pike system and I–81, coordinate emergency re-
sponse with State and local governments in the Cen-
tral Pennsylvania Region, and conduct research.
(2) FUNDING.—Of the amounts made available
for each of fiscal years 1998 through 2003 by sec-
tion 127(a)(3)(H) of this Act, $1,667,000 per fiscal
year shall be available to carry out this subsection.
SEC. 658. REPEAL.
Part B of title VI of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (105 Stat. 2189–2195)
is repealed.
TITLE VII—TRUTH IN
BUDGETING
SEC. 701. BUDGETARY TREATMENT OF HIGHWAY TRUST
FUND.
Notwithstanding any other provision of law (except
the Line Item Veto Act of 1996), the receipts and dis-
bursements of the Highway Trust Fund established by
section 9503 of the Internal Revenue Code of 1986—
(1) shall not be counted as new budget author-
ity, outlays, receipts, or deficit or surplus for pur-
poses of—
530
HR 2400 RDS
(A) the budget of the United States Gov-
ernment as submitted by the President,
(B) the congressional budget (including al-
locations of budget authority and outlays pro-
vided therein), or
(C) the Balanced Budget and Emergency
Deficit Control Act of 1985; and
(2) shall be exempt from any general budget
limitation imposed by statute on expenditures and
net lending (budget outlays) of the United States
Government.
SEC. 702. APPLICABILITY.
This title shall apply to fiscal years beginning after
September 30, 1997.
TITLE VIII—RECREATIONAL
BOATING SAFETY PROGRAM
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Recreational Boating
Safety Improvement Act of 1998’’.
SEC. 802. AMENDMENTS RELATING TO RECREATIONAL
BOATING SAFETY PROGRAM.
(a) IN GENERAL.—Section 13106 of title 46, United
States Code, is amended—
(1) in subsection (a)—
531
HR 2400 RDS
(A) by striking ‘‘(1)’’ and all that follows
through the first sentence and inserting the fol-
lowing: ‘‘Except as provided in subsection (c)
and subject to such amounts as are provided in
appropriations laws, the Secretary may expend
for each fiscal year the amount transferred for
such fiscal year to the Boat Safety Account
under section 9503(c)(4) of the Internal Reve-
nue Code of 1986 (26 U.S.C. 9503(c)(4)).’’;
and
(B) by striking paragraph (2); and
(2) by striking subsection (c) and inserting the
following:
‘‘(c)(1) Of the amount transferred for each fiscal year
to the Boat Safety Account under section 9503(c)(4) of
the Internal Revenue Code of 1986 (26 U.S.C.
9503(c)(4))—
‘‘(A) up to two percent is available to the Sec-
retary to pay the costs of investigations, personnel,
and activities related to administering State rec-
reational boating safety programs;
‘‘(B) up to two percent is available to the Sec-
retary to ensure compliance with chapter 43 of this
title; and
532
HR 2400 RDS
‘‘(C) up to three percent is available to the Sec-
retary to establish, operate, and maintain aids to
navigation that promote primarily recreational boat-
ing safety.
‘‘(2) Amounts made available by this subsection shall
remain available until expended.’’.
(b) COMPREHENSIVE SURVEYS.—Section 13103(c) of
title 46, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) The Secretary shall use amounts allocated under
this subsection to conduct and report to the Congress the
findings of a comprehensive survey of recreational boating
in the United States, by not later than December 1 of
1999 and of every fifth year thereafter. The amount ex-
pended for each survey may not exceed 50 percent of the
amounts allocated under this subsection for the fiscal year
in which the survey is conducted.’’.
(c) REQUIREMENT TO USE STATE PROGRAM ASSIST-
ANCE FOR CERTAIN PUBLIC ACCESS FACILITIES.—Sec-
tion 13106 of title 46, United States Code, is amended
by adding at the end the following:
‘‘(d)(1) The Secretary shall require that of the
amount appropriated for a fiscal year to which this sub-
section applies that is allocated and distributed under this
533
HR 2400 RDS
chapter for State recreational boating safety programs,
the amount described in paragraph (2) shall be available
only for use pursuant to subsection (b)(4) for public access
facilities for transient nontrailerable recreational vessels.
‘‘(2) The amount referred to in paragraph (1) is
equal to five percent of the portion of sums appropriated
for the fiscal year to carry out this chapter that is in ex-
cess of $35,000,000.
‘‘(3) This subsection applies to any fiscal year for
which the total amount appropriated to carry out this
chapter exceeds $35,000,000.’’.
(d) EFFECTIVE DATE.—This section shall take effect
October 1, 1998.
SEC. 803. AMENDMENT OF NATIONAL SEA GRANT COLLEGE
PROGRAM ACT.
Section 203 of the National Sea Grant College Pro-
gram Act (33 U.S.C. 1122) is amended—
(1) by striking paragraph (5);
(2) by redesignating paragraphs (6) through
(17) as paragraphs (5) through (16), respectively;
(3) by redesignating subparagraphs (C) through
(F) of paragraph (7), as so redesignated, as sub-
paragraphs (D) through (G), respectively; and
(4) by inserting after subparagraph (B) of
paragraph (7), as so redesignated, the following:
534
HR 2400 RDS
‘‘(C) Lake Champlain (to the extent that
such resources have hydrological, biological,
physical, or geological characteristics and prob-
lems similar or related to those of the Great
Lakes);’’.
TITLE IX—RAILROADS
SEC. 901. HIGH-SPEED RAIL.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
26104 of title 49, United States Code, is amended—
(1) by redesignating subsection (d) as sub-
section (h); and
(2) by inserting after subsection (c) the follow-
ing new subsections:
‘‘(d) FISCAL YEAR 1998.—(1) There are authorized
to be appropriated to the Secretary $10,000,000 for fiscal
year 1998, for carrying out section 26101 (including pay-
ment of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 1998, for carrying
out section 26102 (including payment of administrative
expenses related thereto).
‘‘(e) FISCAL YEAR 1999.—(1) There are authorized
to be appropriated to the Secretary $10,000,000 for fiscal
year 1999, for carrying out section 26101 (including pay-
ment of administrative expenses related thereto).
535
HR 2400 RDS
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 1999, for carrying
out section 26102 (including payment of administrative
expenses related thereto).
‘‘(f) FISCAL YEAR 2000.—(1) There are authorized
to be appropriated to the Secretary $10,000,000 for fiscal
year 2000, for carrying out section 26101 (including pay-
ment of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 2000, for carrying
out section 26102 (including payment of administrative
expenses related thereto).
‘‘(g) FISCAL YEAR 2001.—(1) There are authorized
to be appropriated to the Secretary $10,000,000 for fiscal
year 2001, for carrying out section 26101 (including pay-
ment of administrative expenses related thereto).
‘‘(2) There are authorized to be appropriated to the
Secretary $25,000,000 for fiscal year 2001, for carrying
out section 26102 (including payment of administrative
expenses related thereto).’’.
(b) DEFINITION.—Section 26105(2) of title 49,
United States Code, is amended to read as follows:
‘‘(2) the term ‘high-speed rail’ means all forms
of nonhighway ground transportation that run on
536
HR 2400 RDS
rails or electromagnetic guideways providing trans-
portation service which is—
‘‘(A) reasonably expected to reach sus-
tained speeds of more than 125 miles per hour;
and
‘‘(B) made available to members of the
general public as passengers,
but does not include rapid transit operations within
an urban area that are not connected to the general
rail system of transportation;’’.
SEC. 902. LIGHT DENSITY RAIL LINE PILOT PROJECTS.
(a) AMENDMENT.—Part B of subtitle V of title 49,
United States Code, is amended by adding at the end the
following new chapter:
‘‘CHAPTER 223—LIGHT DENSITY RAIL
LINE PILOT PROJECTS
‘‘Sec.
‘‘22301. Light density rail line pilot projects.
‘‘§ 22301. Light density rail line pilot projects
‘‘(a) GRANTS.—The Secretary of Transportation may
make grants to States that have State rail plans described
in section 22102 (1) and (2), to fund pilot projects that
demonstrate the relationship of light density railroad serv-
ices to the statutory responsibilities of the Secretary, in-
cluding those under title 23.
537
HR 2400 RDS
‘‘(b) LIMITATIONS.—Grants under this section may
be made only for pilot projects for making capital improve-
ments to, and rehabilitating, publicly and privately owned
rail line structures, and may not be used for providing
operating assistance.
‘‘(c) PRIVATE
OWNER
CONTRIBUTIONS.—Grants
made under this section for projects on privately owned
rail line structures shall include contributions by the
owner of the rail line structures, based on the benefit to
those structures, as determined by the Secretary.
‘‘(d) STUDY.—The Secretary shall conduct a study
of the pilot projects carried out with grant assistance
under this section to determine the public interest benefits
associated with the light density railroad networks in the
States and their contribution to a multimodal transpor-
tation system. Not later than March 31, 2003, the Sec-
retary shall report to Congress any recommendations the
Secretary considers appropriate regarding the eligibility of
light density rail networks for Federal infrastructure fi-
nancing.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary to carry
out this section $25,000,000 for each of the fiscal years
1998, 1999, 2000, 2001, 2002, and 2003. Such funds
shall remain available until expended.’’.
538
HR 2400 RDS
(b) TABLE OF CHAPTERS.—The table of chapters of
subtitle V of title 49, United States Code, is amended by
inserting after the item relating to chapter 221 the follow-
ing new item:
‘‘223. LIGHT DENSITY RAIL LINE PILOT PROJECTS ............
22301’’.
SEC. 903. MIAMI-ORLANDO-TAMPA CORRIDOR PROJECT.
There are authorized to be appropriated to the Sec-
retary of Transportation $200,000,000, to be made avail-
able to the Florida Department of Transportation to reim-
burse the Florida Overland Express project in the Miami-
Orlando-Tampa corridor for capital costs of that project.
The Florida Department of Transportation shall deposit
funds received under this section into a separate account
which shall, to the extent not yet required for the purposes
of this section, be invested in United States Treasury se-
curities. Funds authorized under this section shall not be
counted in calculating the allocation to the State of Flor-
ida under section 111.
SEC. 904. ALASKA RAILROAD.
(a) GRANTS.—The Secretary may make grants to the
Alaska Railroad for capital rehabilitation of and improve-
ments to its passenger services.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,250,000 for each of fiscal years 1998 through 2003.
539
HR 2400 RDS
SEC. 905. RAILWAY-HIGHWAY CROSSING HAZARD ELIMI-
NATION IN HIGH SPEED RAIL CORRIDORS.
There is authorized to be appropriated to carry out
section 104(d)(2) of title 23, United States Code,
$5,250,000 for each of fiscal years 1998 through 2003.
SEC. 906. RAILROAD REHABILITATION AND IMPROVEMENT
FINANCING.
(a) AMENDMENTS.—Title V of the Railroad Revital-
ization and Regulatory Reform Act of 1976 is amended—
(1) by striking sections 501 through 504 and
inserting the following new sections:
‘‘SEC. 501. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1)(A) The term ‘cost’ means the estimated
long-term cost to the Government of a direct loan or
loan guarantee, calculated on a net present value
basis, excluding administrative costs and any inci-
dental effects on governmental receipts or outlays.
‘‘(B) The cost of a direct loan shall be the net
present value, at the time when the direct loan is
disbursed, of the following cash flows:
‘‘(i) Loan disbursements.
‘‘(ii) Repayments of principal.
‘‘(iii) Payments of interest and other pay-
ments by or to the Government over the life of
the loan after adjusting for estimated defaults,
540
HR 2400 RDS
prepayments, fees, penalties, and other recover-
ies.
‘‘(C) The cost of a loan guarantee shall be the
net present value when a guaranteed loan is dis-
bursed, of the following cash flows:
‘‘(i) Estimated payments by the Govern-
ment to cover defaults and delinquencies, inter-
est subsidies, or other payments.
‘‘(ii) Estimated payments to the Govern-
ment, including origination and other fees, pen-
alties, and recoveries.
‘‘(D) Any Government action that alters the es-
timated net present value of an outstanding direct
loan or loan guarantee (except modifications within
the terms of existing contracts or through other ex-
isting authorities) shall be counted as a change in
the cost of that direct loan or loan guarantee. The
calculation of such changes shall be based on the es-
timated present value of the direct loan or loan
guarantee at the time of modification.
‘‘(E) In estimating net present values, the dis-
count rate shall be the average interest rate on mar-
ketable Treasury securities of similar maturity to
the direct loan or loan guarantee for which the esti-
mate is being made.
541
HR 2400 RDS
‘‘(2) The term ‘direct loan’ means a disburse-
ment of funds by the Government to a non-Federal
borrower under a contract that requires the repay-
ment of such funds. The term includes the purchase
of, or participation in, a loan made by another lend-
er. The term does not include the acquisition of a
federally guaranteed loan in satisfaction of default
claims.
‘‘(3) The term ‘direct loan obligation’ means a
binding agreement by the Secretary to make a direct
loan when specified conditions are fulfilled by the
borrower.
‘‘(4) The term ‘intermodal’ means of or relating
to the connection between rail service and other
modes of transportation, including all parts of facili-
ties at which such connection is made.
‘‘(5) The term ‘loan guarantee’ means any
guarantee, insurance, or other pledge with respect to
the payment of all or a part of the principal or inter-
est on any debt obligation of a non-Federal borrower
to a non-Federal lender, but does not include the in-
surance of deposits, shares, or other withdrawable
accounts in financial institutions.
‘‘(6) The term ‘loan guarantee commitment’
means a binding agreement by the Secretary to
542
HR 2400 RDS
make a loan guarantee when specified conditions are
fulfilled by the borrower, the lender, or any other
party to the guarantee agreement.
‘‘SEC. 502. DIRECT LOANS AND LOAN GUARANTEES.
‘‘(a) GENERAL AUTHORITY.—The Secretary may
provide direct loans and loan guarantees to State and local
governments, government sponsored authorities and cor-
porations, railroads, and joint ventures that include at
least 1 railroad.
‘‘(b) ELIGIBLE PURPOSES.—
‘‘(1) IN GENERAL.—Direct loans and loan guar-
antees under this section shall be used to—
‘‘(A) acquire, improve, or rehabilitate
intermodal or rail equipment or facilities, in-
cluding track, components of track, bridges,
yards, buildings, and shops;
‘‘(B) refinance outstanding debt incurred
for the purposes described in subparagraph (A);
or
‘‘(C) develop or establish new intermodal
or railroad facilities.
‘‘(2) OPERATING EXPENSES NOT ELIGIBLE.—
Direct loans and loan guarantees under this section
shall not be used for railroad operating expenses.
543
HR 2400 RDS
‘‘(c) PRIORITY PROJECTS.—In granting applications
for direct loans or guaranteed loans under this section,
the Secretary shall give priority to projects that—
‘‘(1) enhance public safety;
‘‘(2) enhance the environment;
‘‘(3) promote economic development;
‘‘(4) enable United States companies to be more
competitive in international markets;
‘‘(5) are endorsed by the plans prepared under
section 135 of title 23, United States Code, by the
State or States in which they are located; or
‘‘(6) preserve rail or intermodal service to small
communities or rural areas.
‘‘(d) EXTENT OF AUTHORITY.—The aggregate un-
paid principal amounts of obligations under direct loans
and loan guarantees made under this section shall not ex-
ceed $5,000,000,000 at any one time. Of this amount, not
less than $1,000,000,000 shall be available solely for
projects primarily benefiting freight railroads other than
Class I carriers.
‘‘(e) RATES OF INTEREST.—
‘‘(1) DIRECT LOANS.—The Secretary shall re-
quire interest to be paid on a direct loan made
under this section at a rate not less than that nec-
essary to recover the cost of making the loan.
544
HR 2400 RDS
‘‘(2) LOAN GUARANTEES.—The Secretary shall
not make a loan guarantee under this section if the
interest rate for the loan exceeds that which the Sec-
retary determines to be reasonable, taking into con-
sideration the prevailing interest rates and cus-
tomary fees incurred under similar obligations in the
private capital market.
‘‘(f) INFRASTRUCTURE PARTNERS.—
‘‘(1) AUTHORITY OF SECRETARY.—In lieu of or
in combination with appropriations of budget au-
thority to cover the costs of direct loans and loan
guarantees as required under section 504(b)(1) of
the Federal Credit Reform Act of 1990, the Sec-
retary may accept on behalf of an applicant for as-
sistance under this section a commitment from a
non-Federal source to fund in whole or in part credit
risk premiums with respect to the loan that is the
subject of the application. In no event shall the ag-
gregate of appropriations of budget authority and
credit risk premiums described in this paragraph
with respect to a direct loan or loan guarantee be
less than the cost of that direct loan or loan guaran-
tee.
‘‘(2) CREDIT
RISK
PREMIUM
AMOUNT.—The
Secretary shall determine the amount required for
545
HR 2400 RDS
credit risk premiums under this subsection on the
basis of—
‘‘(A) the circumstances of the applicant,
including the amount of collateral offered;
‘‘(B) the proposed schedule of loan dis-
bursements;
‘‘(C) historical data on the repayment his-
tory of similar borrowers;
‘‘(D) consultation with the Congressional
Budget Office; and
‘‘(E) any other factors the Secretary con-
siders relevant.
‘‘(3) PAYMENT OF PREMIUMS.—Credit risk pre-
miums under this subsection shall be paid to the
Secretary before the disbursement of loan amounts.
‘‘(4) COHORTS OF LOANS.—In order to main-
tain sufficient balances of credit risk premiums to
adequately protect the Federal Government from
risk of default, while minimizing the length of time
the Government retains possession of those balances,
the Secretary shall establish cohorts of loans. When
all obligations attached to a cohort of loans have
been satisfied, credit risk premiums paid for the co-
hort, and interest accrued thereon, which were not
546
HR 2400 RDS
used to mitigate losses shall be returned to the origi-
nal source on a pro rata basis.
‘‘(g) PREREQUISITES FOR ASSISTANCE.—The Sec-
retary shall not make a direct loan or loan guarantee
under this section unless the Secretary has made a finding
in writing that—
‘‘(1) repayment of the obligation is required to
be made within a term of not more than 25 years
from the date of its execution;
‘‘(2) the direct loan or loan guarantee is justi-
fied by the present and probable future demand for
rail services or intermodal facilities;
‘‘(3) the applicant has given reasonable assur-
ances that the facilities or equipment to be acquired,
rehabilitated, improved, developed, or established
with the proceeds of the obligation will be economi-
cally and efficiently utilized;
‘‘(4) the obligation can reasonably be repaid,
using an appropriate combination of credit risk pre-
miums and collateral offered by the applicant to pro-
tect the Federal Government; and
‘‘(5) the purposes of the direct loan or loan
guarantee are consistent with subsection (b).
‘‘(h) CONDITIONS OF ASSISTANCE.—The Secretary
shall, before granting assistance under this section, re-
547
HR 2400 RDS
quire the applicant to agree to such terms and conditions
as are sufficient, in the judgment of the Secretary, to en-
sure that, as long as any principal or interest is due and
payable on such obligation, the applicant, and any railroad
or railroad partner for whose benefit the assistance is in-
tended—
‘‘(1) will not use any funds or assets from rail-
road or intermodal operations for purposes not relat-
ed to such operations, if such use would impair the
ability of the applicant, railroad, or railroad partner
to provide rail or intermodal services in an efficient
and economic manner, or would adversely affect the
ability of the applicant, railroad, or railroad partner
to perform any obligation entered into by the appli-
cant under this section;
‘‘(2) will, consistent with its capital resources,
maintain its capital program, equipment, facilities,
and operations on a continuing basis; and
‘‘(3) will not make any discretionary dividend
payments that unreasonably conflict with the pur-
poses stated in subsection (b).
‘‘SEC. 503. ADMINISTRATION OF DIRECT LOANS AND LOAN
GUARANTEES.
‘‘(a) APPLICATIONS.—The Secretary shall prescribe
the form and contents required of applications for assist-
549
HR 2400 RDS
the direct loan or loan guarantee, including through regu-
lar periodic inspections.
‘‘(f) COMMERCIAL
VALIDITY.—For purposes of
claims by any party other than the Secretary, a loan guar-
antee or loan guarantee commitment shall be conclusive
evidence that the underlying obligation is in compliance
with the provisions of this title, and that such obligation
has been approved and is legal as to principal, interest,
and other terms. Such a guarantee or commitment shall
be valid and incontestable in the hands of a holder thereof,
including the original lender or any other holder, as of
the date when the Secretary granted the application there-
for, except as to fraud or material misrepresentation by
such holder.
‘‘(g) DEFAULT.—The Secretary shall prescribe regu-
lations setting forth procedures in the event of default on
a loan made or guaranteed under section 502. The Sec-
retary shall ensure that each loan guarantee made under
that section contains terms and conditions that provide
that—
‘‘(1) if a payment of principal or interest under
the loan is in default for more than 30 days, the
Secretary shall pay to the holder of the obligation,
or the holder’s agent, the amount of unpaid guaran-
teed interest;
550
HR 2400 RDS
‘‘(2) if the default has continued for more than
90 days, the Secretary shall pay to the holder of the
obligation, or the holder’s agent, 90 percent of the
unpaid guaranteed principal;
‘‘(3) after final resolution of the default,
through liquidation or otherwise, the Secretary shall
pay to the holder of the obligation, or the holder’s
agent, any remaining amounts guaranteed but which
were not recovered through the default’s resolution;
‘‘(4) the Secretary shall not be required to
make any payment under paragraphs (1) through
(3) if the Secretary finds, before the expiration of
the periods described in such paragraphs, that the
default has been remedied; and
‘‘(5) the holder of the obligation shall not re-
ceive payment or be entitled to retain payment in a
total amount which, together with all other recover-
ies (including any recovery based upon a security in-
terest in equipment or facilities) exceeds the actual
loss of such holder.
‘‘(h) RIGHTS OF THE SECRETARY.—
‘‘(1) SUBROGATION.—If the Secretary makes
payment to a holder, or a holder’s agent, under sub-
section (g) in connection with a loan guarantee made
under section 502, the Secretary shall be subrogated
551
HR 2400 RDS
to all of the rights of the holder with respect to the
obligor under the loan.
‘‘(2) DISPOSITION
OF
PROPERTY.—The Sec-
retary may complete, recondition, reconstruct, ren-
ovate, repair, maintain, operate, charter, rent, sell,
or otherwise dispose of any property or other inter-
ests obtained pursuant to this section. The Secretary
shall not be subject to any Federal or State regu-
latory requirements when carrying out this para-
graph.
‘‘(i) ACTION AGAINST OBLIGOR.—The Secretary may
bring a civil action in an appropriate Federal court in the
name of the United States in the event of a default on
a direct loan made under section 502, or in the name of
the United States or of the holder of the obligation in the
event of a default on a loan guaranteed under section 502.
The holder of a guarantee shall make available to the Sec-
retary all records and evidence necessary to prosecute the
civil action. The Secretary may accept property in full or
partial satisfaction of any sums owed as a result of a de-
fault. If the Secretary receives, through the sale or other
disposition of such property, an amount greater than the
aggregate of—
‘‘(1) the amount paid to the holder of a guaran-
tee under subsection (g) of this section; and
552
HR 2400 RDS
‘‘(2) any other cost to the United States of
remedying the default,
the Secretary shall pay such excess to the obligor.
‘‘(j) BREACH OF CONDITIONS.—The Attorney Gen-
eral shall commence a civil action in an appropriate Fed-
eral court to enjoin any activity which the Secretary finds
is in violation of this title, regulations issued hereunder,
or any conditions which were duly agreed to, and to secure
any other appropriate relief.
‘‘(k) ATTACHMENT.—No attachment or execution
may be issued against the Secretary, or any property in
the control of the Secretary, prior to the entry of final
judgment to such effect in any State, Federal, or other
court.
‘‘(l) INVESTIGATION CHARGE.—The Secretary may
charge and collect from each applicant a reasonable charge
for appraisal of the value of the equipment or facilities
for which the direct loan or loan guarantee is sought, and
for making necessary determinations and findings. Such
charge shall not aggregate more than one-half of 1 percent
of the principal amount of the obligation.’’;
(2) by striking sections 505 through 515 (other
than 511(c)), 517, and 518;
(3) in section 511(c) by striking ‘‘this section’’
and inserting ‘‘section 502’’;
553
HR 2400 RDS
(4) by moving subsection (c) of section 511 (as
amended by paragraph (3) of this section) from sec-
tion 511 to section 503 (as inserted by paragraph
(1) of this section), inserting it after subsection (a),
and redesignating it as subsection (b); and
(5) by redesignating section 516 as section 504.
(b) TECHNICAL AND CONFORMING PROVISIONS.—
(1) TABLE OF CONTENTS.—The table of con-
tents of title V of the Railroad Revitalization and
Regulatory Reform Act of 1976 is amended by strik-
ing the items relating to sections 502 through 518
and inserting the following:
‘‘Sec. 502. Direct loans and loan guarantees.
‘‘Sec. 503. Administration of direct loans and loan guarantees.
‘‘Sec. 504. Employee protection.’’.
(2) SAVINGS
PROVISION.—A transaction en-
tered into under the authority of title V of the Rail-
road Revitalization and Regulatory Reform Act of
1976 (45 U.S.C. 821 et seq.) before the date of the
enactment of this Act shall be administered until
completion under its terms as if this Act were not
enacted.
(3) REPEAL.—Section 211(i) of the Regional
Rail Reorganization Act of 1973 (45 U.S.C. 721(i))
is repealed.
554
HR 2400 RDS
TITLE X—CONDITIONS FOR
IMPLEMENTATION OF FUNDING
SEC. 1001. CONDITIONS FOR IMPLEMENTATION OF FUND-
ING.
(a) PURPOSE.—The purpose of this section is to en-
sure that all additional spending provided by this Act
above the levels assumed for those programs under section
257 of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 in the baseline projections contained in
the Congressional Budget Office document entitled ‘‘Re-
vised Baseline Budget Projections for Fiscal Years 1999–
2008,’’ dated March 3, 1998, except that for programs
with discretionary outlays the projections shall assume ob-
ligation authority at the 1998 enacted level and that the
programs shall be adjusted for the transfer of general fund
programs to the trust fund, is fully offset through manda-
tory and discretionary offsets set forth in this Act.
(b) DUTY IMPOSED ON SECRETARY.—The Secretary
of Transportation shall not apportion, allocate, or obligate
any funds authorized or provided by this Act unless it con-
tains a section stating that the conditions set forth in sub-
section (c) have been met.
(c) ENUMERATION OF SPECIFIC CONDITIONS.—The
conditions referred to in subsection (b) are that this Act
shall contain provisions that offset any increase in outlays
555
HR 2400 RDS
from the Highway Trust Fund caused by this Act above
the levels assumed for those programs under section 257
of the Balanced Budget and Emergency Deficit Control
Act of 1985 in the baseline projections contained in the
Congressional Budget Office document entitled ‘‘Revised
Baseline Budget Projections for Fiscal Years 1999–
2008,’’ dated March 3, 1998, except that for programs
with discretionary outlays the projections shall assume ob-
ligation authority at the 1998 enacted level and that the
programs shall be adjusted for the transfer of general fund
programs to the trust fund, by reducing mandatory and
discretionary spending.
SEC. 1002. SENSE OF THE CONGRESS WITH RESPECT TO
VETERANS PROGRAMS.
It is the sense of the Congress that provisions re-
ferred to in section 1001(c) that are to be contained in
this Act to offset increases described in that section in
outlays from the Highway Trust Fund should not include
any provision making a change in programs or benefits
administered by the Secretary of Veterans Affairs.
TITLE 
XI—EXTENSION 
AND
MODIFICATION OF HIGHWAY-
RELATED TAXES AND TRUST
FUND
Sec. 1101. Short title; amendment of 1986 Code.
Sec. 1102. Extension of highway-related taxes and trust fund.
Sec. 1103. Modifications to Highway Trust Fund.
556
HR 2400 RDS
Sec. 1104. Provisions relating to Aquatic Resources Trust Fund.
Sec. 1105. Repeal of excise tax on tires.
Sec. 1106. Repeal of 4.3 cent excise tax on diesel fuel and gasoline used in
trains.
Sec. 1107. Delay in effective date of new requirement for approved diesel or
kerosene terminals.
Sec. 1108. Simplified fuel tax refund procedures.
Sec. 1109. Repeal of National Recreational Trails Trust Fund.
SEC. 1101. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Surface Transportation Revenue Act of 1998’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
SEC. 1102. EXTENSION OF HIGHWAY-RELATED TAXES AND
TRUST FUND.
(a) EXTENSION OF TAXES.—
(1) IN GENERAL.—The following provisions are
each amended by striking ‘‘1999’’ each place it ap-
pears and inserting ‘‘2005’’:
(A) Section 4041(a)(1)(C)(iii)(I) (relating
to rate of tax on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate
of tax on special motor fuels), as amended by
section 907(a)(1) of the Taxpayer Relief Act of
1997.
557
HR 2400 RDS
(C) Section 4041(m)(1)(A) (relating to
certain alcohol fuels), as amended by section
907(b) of the Taxpayer Relief Act of 1997.
(D) Section 4051(c) (relating to termi-
nation).
(E) Section 4081(d)(1) (relating to termi-
nation).
(F) Section 4481(e) (relating to period tax
in effect).
(G) Section 4482(c)(4) (relating to taxable
period).
(H) Section 4482(d) (relating to special
rule for taxable period in which termination
date occurs).
(2) TAX ON TIRES EXTENDED ONLY THROUGH
SEPTEMBER 30, 2000.—Section 4071(d) (relating to
termination) is amended by striking ‘‘1999’’ and in-
serting ‘‘2000’’.
(3) OTHER PROVISIONS.—
(A) FLOOR
STOCKS
REFUNDS.—Section
6412(a)(1) (relating to floor stocks refunds) is
amended—
(i) by striking ‘‘1999’’ each place it
appears and inserting ‘‘2005’’, and
558
HR 2400 RDS
(ii) by striking ‘‘2000’’ each place it
appears and inserting ‘‘2006’’.
(B) INSTALLMENT
PAYMENTS
OF
HIGH-
WAY USE TAX.—Section 6156(e)(2) (relating to
installment payments of highway use tax on use
of highway motor vehicles) is amended by strik-
ing ‘‘1999’’ and inserting ‘‘2005’’.
(b) EXTENSION OF CERTAIN EXEMPTIONS.—The fol-
lowing provisions are each amended by striking ‘‘1999’’
and inserting ‘‘2005’’:
(1) Section 4221(a) (relating to certain tax-free
sales).
(2) Section 4483(g) (relating to termination of
exemptions for highway use tax).
(c) EXTENSION OF DEPOSITS INTO, AND CERTAIN
TRANSFERS FROM, TRUST FUND.—
(1) IN
GENERAL.—Subsection (b), and para-
graphs (2) and (3) of subsection (c), of section 9503
(relating to the Highway Trust Fund) are each
amended—
(A) by striking ‘‘1999’’ each place it ap-
pears (other than in subsection (b)(4)) and in-
serting ‘‘2005’’, and
(B) by striking ‘‘2000’’ each place it ap-
pears and inserting ‘‘2006’’.
559
HR 2400 RDS
(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX
TRANSFERS.—
(A) IN
GENERAL.—Paragraphs (4)(A)(i)
and (5)(A) of section 9503(c) are each amended
by striking ‘‘1998’’ and inserting ‘‘2003’’.
(B) CONFORMING AMENDMENTS TO LAND
AND
WATER
CONSERVATION
FUND.—Section
201(b) of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l–11(b)) is
amended—
(i) by striking ‘‘1997’’ and inserting
‘‘2003’’, and
(ii) by striking ‘‘1998’’ each place it
appears and inserting ‘‘2004’’.
(3) CONFORMING AMENDMENT.—The heading
for paragraph (3) of section 9503(c) is amended to
read as follows:
‘‘(3) FLOOR STOCKS REFUNDS.—’’.
(d) EXTENSION AND EXPANSION OF EXPENDITURES
FROM TRUST FUND.—
(1) HIGHWAY ACCOUNT.—
(A) EXTENSION
OF
EXPENDITURE
AU-
THORITY.—Paragraph (1) of section 9503(c) is
amended by striking ‘‘1998’’ and inserting
‘‘2003’’.
560
HR 2400 RDS
(B) EXPANSION
OF
PURPOSES.—Para-
graph (1) of section 9503(c) is amended—
(i) by striking ‘‘or’’ at the end of sub-
paragraph (C), and
(ii) by striking ‘‘1991.’’ in subpara-
graph (D) and all that follows through the
end of paragraph (1) and inserting ‘‘1991,
or
‘‘(E) authorized to be paid out of the
Highway Trust Fund under the Building Effi-
cient Surface Transportation and Equity Act of
1998.
In determining the authorizations under the Acts re-
ferred to in the preceding subparagraphs, such Acts
shall be applied as in effect on the date of the enact-
ment of the Building Efficient Surface Transpor-
tation and Equity Act of 1998.’’.
(2) MASS TRANSIT ACCOUNT.—
(A) EXTENSION
OF
EXPENDITURE
AU-
THORITY.—Paragraph (3) of section 9503(e) is
amended by striking ‘‘1998’’ and inserting
‘‘2003’’.
(B) EXPANSION
OF
PURPOSES.—Para-
graph (3) of section 9503(e) is amended—
561
HR 2400 RDS
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A),
(ii) by adding ‘‘or’’ at the end of sub-
paragraph (B), and
(iii) by striking all that follows sub-
paragraph (B) and inserting:
‘‘(C) the Building Efficient Surface Trans-
portation and Equity Act of 1998,
as such sections and Acts are in effect on the date
of the enactment of the Building Efficient Surface
Transportation and Equity Act of 1998.’’.
(e) TECHNICAL CORRECTION RELATING TO TRANS-
FERS TO MASS TRANSIT ACCOUNT.—
(1) 
IN
GENERAL.—Section 
9503(e)(2) 
is
amended by striking the last sentence and inserting
the following: ‘‘For purposes of the preceding sen-
tence, the term ‘mass transit portion’ means, for any
fuel with respect to which tax was imposed under
section 4041 or 4081 and otherwise deposited into
the Highway Trust Fund, the amount determined at
the rate of—
‘‘(A) except as otherwise provided in this
sentence, 2.86 cents per gallon,
‘‘(B) 1.43 cents per gallon in the case of
any partially exempt methanol or ethanol fuel
562
HR 2400 RDS
(as defined in section 4041(m)) none of the al-
cohol in which consists of ethanol,
‘‘(C) 1.86 cents per gallon in the case of
liquefied natural gas,
‘‘(D) 2.13 cents per gallon in the case of
liquefied petroleum gas, and
‘‘(E) 9.71 cents per MCF (determined at
standard temperature and pressure) in the case
of compressed natural gas.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect as if included in
the amendment made by section 901(b) of the Tax-
payer Relief Act of 1997.
SEC. 1103. MODIFICATIONS TO HIGHWAY TRUST FUND.
(a) DETERMINATION OF TRUST FUND BALANCES
AFTER SEPTEMBER 30, 1998.—
(1) IN
GENERAL.—Section 9503 (relating to
Highway Trust Fund) is amended by adding at the
end the following new subsection:
‘‘(f) DETERMINATION OF TRUST FUND BALANCES
AFTER SEPTEMBER 30, 1998.—For purposes of deter-
mining the balances of the Highway Trust Fund and the
Mass Transit Account after September 30, 1998—
563
HR 2400 RDS
‘‘(1) the opening balance of the Highway Trust
Fund (other than the Mass Transit Account) on Oc-
tober 1, 1998, shall be $8,000,000,000,
‘‘(2) the opening balance of the Mass Transit
Account on such date shall be $5,500,000,000, and
‘‘(3) no interest on any obligation held by such
Fund shall be credited to such Fund if such interest
accrues after September 30, 1998.
The Secretary shall cancel obligations held by the High-
way Trust Fund to reflect the reduction in the balances
under this subsection.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
1998.
(b) REPEAL
OF LIMITATION
ON EXPENDITURES
ADDED BY TAXPAYER RELIEF ACT OF 1997.—
(1) IN
GENERAL.—Subsection (c) of section
9503 (relating to expenditures from Highway Trust
Fund) is amended by striking paragraph (7).
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect as if included in
the amendments made by section 901 of the Tax-
payer Relief Act of 1997.
(c) LIMITATION
ON EXPENDITURE AUTHORITY.—
Subsection (b) of section 9503 (relating to transfers to
564
HR 2400 RDS
Highway Trust Fund) is amended by adding at the end
the following new paragraph:
‘‘(6) LIMITATION ON TRANSFERS TO HIGHWAY
TRUST FUND.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no amount may be appro-
priated to the Highway Trust Fund on and
after the date of any expenditure from the
Highway Trust Fund which is not permitted by
this section. The determination of whether an
expenditure is so permitted shall be made with-
out regard to—
‘‘(i) any provision of law which is not
contained or referenced in this title or in
a revenue Act, and
‘‘(ii) whether such provision of law is
a subsequently enacted provision or di-
rectly or indirectly seeks to waive the ap-
plication of this paragraph.
‘‘(B) EXCEPTION
FOR
PRIOR
OBLIGA-
TIONS.—Subparagraph (A) shall not apply to
any expenditure to liquidate any contract en-
tered into (or for any amount otherwise obli-
gated) before October 1, 2003, in accordance
with the provisions of this section.’’.
565
HR 2400 RDS
(d) MODIFICATION
OF MASS TRANSIT ACCOUNT
RULES ON ADJUSTMENTS OF APPORTIONMENTS.—Para-
graph (4) of section 9503(e) is amended to read as follows:
‘‘(4) LIMITATION.—Rules similar to the rules of
subsection (d) shall apply to the Mass Transit Ac-
count.’’.
SEC. 1104. PROVISIONS RELATING TO AQUATIC RESOURCES
TRUST FUND.
(a) INCREASED TRANSFERS.—
(1)(A) Effective with respect to taxes imposed
after September 30, 1999, and before October 1,
2000, subparagraph (D) of section 9503(b)(4) is
amended by striking ‘‘11.5 cents’’ and inserting
‘‘14.9 cents’’.
(B) Effective with respect to taxes imposed
after September 30, 2000, paragraph (4) of section
9503(b) is amended by striking subparagraph (D)
and by redesignating subparagraphs (E), (F), and
(G) as subparagraphs (D), (E), and (F), respec-
tively.
(2) Subparagraph (A) of section 9503(c)(4), as
amended by section 1102(c)(2)(A), is amended to
read as follows:
‘‘(A) TRANSFERS
TO
BOAT
SAFETY
AC-
COUNT.—
566
HR 2400 RDS
‘‘(i) IN
GENERAL.—The Secretary
shall pay from time to time from the High-
way Trust Fund into the Boat Safety Ac-
count in the Aquatic Resources Trust
Fund amounts (as determined by the Sec-
retary) equivalent to one-half of the motor-
boat fuel taxes received after September
30, 1998, and before October 1, 2003.
‘‘(ii) LIMIT ON AMOUNT IN FUND.—
No amount shall be transferred under this
subparagraph during any fiscal year if the
Secretary determines that such transfer
would result in increasing the unobligated
balance in the Boat Safety Account to a
sum in excess of one-half of the total
amount received as motorboat fuel taxes
during the preceding fiscal year.’’.
(b) EXTENSION AND EXPANSION OF EXPENDITURE
AUTHORITY FROM BOAT SAFETY ACCOUNT.—Section
9504(c) (relating to expenditures from Boat Safety Ac-
count) is amended—
(1) by striking ‘‘1998’’ and inserting ‘‘2003’’,
and