‘‘(D) PROJECT JUSTIFICATION.—In evalu-
ating a project, the Secretary shall give priority 
consideration to a project that exhibits the cri-
teria established in subsection (c). 
‘‘(E) LOCAL FINANCIAL COMMITMENT.—
‘‘(i) EVALUATION
OF
PROJECT.—In 
evaluating a project under subparagraph 
(A)(iii), the Secretary shall require that—
‘‘(I) the proposed project plan 
provides for the availability of contin-
gency amounts that the Secretary de-
termines to be reasonable to cover un-
anticipated cost increases; and 
‘‘(II) each proposed local source 
of capital and operating financing is 
stable, reliable, and available within 
the proposed project timetable. 
‘‘(ii) CONSIDERATIONS.—In assessing 
the stability, reliability, and availability of 
proposed sources of local financing under 
clause (i), the Secretary shall consider—
‘‘(I) existing grant commitments; 
‘‘(II) the degree to which financ-
ing sources are dedicated to the pur-
poses proposed;
‘‘(III) any debt obligation that 
exists or is proposed by the recipient 
for the proposed project; and 
‘‘(IV) the extent to which the 
project has a local financial commit-
ment that exceeds the required non-
Federal share of the cost of the 
project. 
‘‘(F) REGULATIONS.—Not later than 120 
days after the date of enactment of this section, 
the Secretary shall issue regulations on the 
manner in which the Secretary will evaluate and 
rate the projects based on the results of alter-
natives analysis, project justification, and the 
degree of local financial commitment, as re-
quired under this paragraph. 
‘‘(G) PROJECT
EVALUATION
AND
RAT-
ING.—A proposed project may advance from al-
ternatives analysis to preliminary engineering, 
and may advance from preliminary engineering 
to final design and construction, only if the Sec-
retary finds that the project meets the require-
ments of this subsection and there is a reason-
able likelihood that the project will continue to 
meet such requirements. In making such find-
ings, the Secretary shall evaluate and rate the 
project 
as 
‘highly 
recommended’, 
‘rec-
ommended’, or ‘not recommended’, based on the 
results of alternatives analysis, the project jus-
tification criteria, and the degree of local finan-
cial commitment, as required under this para-
graph. In rating the projects, the Secretary 
shall provide, in addition to the overall project 
rating, individual ratings for each of the criteria 
established under the regulations issued under 
subparagraph (F). 
‘‘(H) FULL
FUNDING
GRANT
AGREE-
MENT.—A project financed under this sub-
section shall be carried out through a full fund-
ing grant agreement. The Secretary shall enter 
into a full funding grant agreement based on 
the evaluations and ratings required under this 
subsection. The Secretary shall not enter into a 
full funding grant agreement for a project un-
less that project is authorized for final design 
and construction. 
‘‘(4) FULL FUNDING GRANT AGREEMENTS AND 
EARLY SYSTEMS WORK AGREEMENTS.—
‘‘(A) FULL
FUNDING
GRANT
AGREE-
MENTS.—
‘‘(i) IN
GENERAL.—The Secretary 
may make a full funding grant agreement 
with an applicant. The agreement shall—
‘‘(I) establish the terms of par-
ticipation by the United States Gov-
ernment in a project under this sub-
section; 
‘‘(II) establish the maximum 
amount of Government financial as-
sistance for the project; 
‘‘(III) cover the period of time 
for completing the project, including a 
period extending beyond the period of 
an authorization; and 
‘‘(IV) make timely and efficient 
management of the project easier ac-
cording to the law of the United 
States. 
‘‘(ii) OBLIGATION OF AMOUNTS.—An 
agreement under this subparagraph obli-
gates an amount of available budget au-
thority specified in law and may include a 
commitment, contingent on amounts to be 
specified in law in advance for commit-
ments under this subparagraph, to obligate
an additional amount from future available 
budget authority specified in law. The 
agreement shall state that the contingent 
commitment is not an obligation of the 
Government. Interest and other financing 
costs of efficiently carrying out a part of 
the project within a reasonable time are a 
cost of carrying out the project under a 
full funding grant agreement, except that 
eligible costs may not be more than the 
cost of the most favorable financing terms 
reasonably available for the project at the 
time of borrowing. The applicant shall cer-
tify, in a way satisfactory to the Secretary, 
that the applicant has shown reasonable 
diligence in seeking the most favorable fi-
nancing terms. The amount stipulated in 
an agreement under this subparagraph for 
a project shall be sufficient to complete at 
least an operable segment. 
‘‘(B) EARLY
SYSTEMS
WORK
AGREE-
MENTS.—
‘‘(i) IN
GENERAL.—The Secretary 
may make an early systems work agree-
ment with an applicant if a record of deci-
sion under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) has been issued on the project and 
the Secretary finds there is reason to be-
lieve—
‘‘(I) a full funding grant agree-
ment for the project will be made; and 
‘‘(II) the terms of the work 
agreement will promote ultimate com-
pletion of the project more rapidly 
and at less cost. 
‘‘(ii) OBLIGATION
OF
AMOUNTS.—A 
work agreement under this subparagraph 
obligates an amount of available budget 
authority specified in law and shall provide 
for reimbursement of preliminary costs of 
carrying out the project, including land ac-
quisition, timely procurement of system 
elements for which specifications are de-
cided, and other activities the Secretary 
decides are appropriate to make efficient, 
long-term project management easier. A 
work agreement shall cover the period of 
time the Secretary considers appropriate. 
The period may extend beyond the period
of current authorization. Interest and 
other financing costs of efficiently carrying 
out the work agreement within a reason-
able time are a cost of carrying out the 
agreement, except that eligible costs may 
not be more than the cost of the most fa-
vorable financing terms reasonably avail-
able for the project at the time of bor-
rowing. The applicant shall certify, in a 
way satisfactory to the Secretary, that the 
applicant has shown reasonable diligence in 
seeking the most favorable financing 
terms. If an applicant does not carry out 
the project for reasons within the control 
of the applicant, the applicant shall repay 
all Government payments made under the 
work agreement plus reasonable interest 
and penalty charges the Secretary estab-
lishes in the agreement. 
‘‘(C) TOTAL OF FUTURE OBLIGATIONS.—
The total estimated amount of future obliga-
tions of the Government and contingent com-
mitments to incur obligations covered by all 
outstanding letters of intent, full funding grant 
agreements, and early systems work agreements
may be not more than the greater of the 
amount authorized to carry out this section, 
less an amount the Secretary reasonably esti-
mates is necessary for grants under this sub-
section not covered by a letter. The total 
amount covered by new letters and contingent 
commitments included in full funding grant 
agreements and early systems work agreements 
may be not more than a limitation specified in 
law. 
‘‘(5) GOVERNMENT’S SHARE OF NET PROJECT 
COST.—Based on engineering studies, studies of eco-
nomic feasibility, and information on the expected 
use of equipment or facilities, the Secretary shall es-
timate the net project cost. A grant for the project 
is for 80 percent of the net project cost, unless the 
grant recipient requests a lower grant percentage. 
The remainder shall be provided in cash from a 
source other than amounts of the Government. 
Amounts that make up the remainder must be from 
an undistributed cash surplus, a replacement or de-
preciation cash fund or reserve, or new capital. A re-
fund or reduction of the remainder may be made 
only if a refund of a proportional amount of the 
grant of the Government is made at the same time.
‘‘(6) FINANCIAL PLAN.—A recipient of Federal 
financial assistance for a project under this section 
with an estimated total cost of $100,000,000 or 
more shall submit to the Secretary an annual finan-
cial plan for the project. The plan shall be based on 
detailed annual estimates of the cost to complete the 
remaining elements of the project and on reasonable 
assumptions, as determined by the Secretary, of fu-
ture increases in the cost to complete the project. 
‘‘(7) FISCAL
CAPACITY
CONSIDERATIONS.—If 
the Secretary gives priority consideration to financ-
ing projects that include more than the non-Govern-
ment share required under paragraph (5), the Sec-
retary shall give equal consideration to differences in 
the fiscal capacity of State and local governments. 
‘‘(8) UNDERTAKING PROJECTS IN ADVANCE.—
The Secretary may pay the Government’s share of 
the net project costs to a State or local govern-
mental authority that carries out any part of a 
project described in this subsection without the aid 
of amounts of the Government and according to all 
applicable procedures and requirements if—
‘‘(A) the State or local governmental au-
thority applies for the payment;
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under the goods movement pro-
gram. 
‘‘(9) REPORTS.—Not later than the first Mon-
day in February of each year, the Secretary shall 
submit to the Congress a report that includes a pro-
posal on the allocation of amounts to be made avail-
able to finance grants for capital projects under the 
goods movement program for those amounts. 
‘‘(e) SPECIFIC DESIGNATIONS.—
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, Congress deems the fol-
lowing to be projects of national economic signifi-
cance: [To Be Supplied]. 
‘‘(2) REPORTS.—Not later than October 1, 
2006, and October 1, 2008, project recipients under 
this section shall submit to the Secretary and the 
Congress a report enumerating the national eco-
nomic significance of the project. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be 
appropriated out of the Highway Trust Fund (other 
than the Mass Transit Account) to carry out this 
section $3,000,000,000 for each of fiscal years 2005 
through 2010. Of such amount, $1,500,000,000 per 
fiscal year shall be available only for carrying out 
projects designated under subsection (e). 
‘‘(2) ALLOCATION OF AMOUNTS.—Not to exceed 
8 percent of the amounts made available to carry 
out this section in a fiscal year may be used for 
planning, design, preliminary engineering, and 
projects with a total cost of less than $25,000,000. 
‘‘(g) CONTRACT AUTHORITY.—Sums authorized to be 
appropriated to carry out this section shall be available 
for obligation in the same manner as funds apportioned 
under section 104(b)(1), except that such amounts shall 
not be counted toward a State’s allocation under section 
105 and shall not be subject to any obligation limitation.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter I of such title is amended by add-
ing at the end the following:
‘‘165. Goods movement program.’’.
(c) REPEAL.—Section 1118 of the Transportation 
Equity Act for the 21st Century (23 U.S.C. 101 note; 112 
Stat. 161) is repealed.
Æ