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ating and capital costs of equipment and facilities 
being used to provide the public transportation serv-
ice, or in the case of subsection (f) of such section 
5311, intercity bus service, that the recipient incurs 
as a result of the expansion of such service. 
(c) FEDERAL SHARE.—Notwithstanding any other 
provision of law, the Federal share of the costs for which 
a grant is made under this section shall be 100 percent. 
(d) PERIOD OF AVAILABILITY.—Funds appropriated 
under this section shall remain available for a period of 
2 fiscal years. 
SEC. 8202. INCREASED FEDERAL SHARE FOR CLEAN AIR 
ACT COMPLIANCE. 
Notwithstanding section 5323(i)(1) of title 49, 
United States Code, a grant for a project to be assisted 
under chapter 53 of such title during fiscal years 2008 
and 2009 that involves acquiring clean fuel or alternative 
fuel vehicle-related equipment or facilities for the purposes 
of complying with or maintaining compliance with the 
Clean Air Act (42 U.S.C. 7401 et seq.) shall be for 100 
percent of the net project cost of the equipment or facility 
attributable to compliance with that Act. 
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SEC. 8203. COMMUTER RAIL TRANSIT ENHANCEMENT. 
(a) AMENDMENT.—Part E of subtitle V of title 49, 
United States Code, is amended by adding at the end the 
following: 
‘‘CHAPTER 285—COMMUTER RAIL 
TRANSIT ENHANCEMENT 
‘‘Sec. 
‘‘28501.Definitions 
‘‘28502. Surface Transportation Board mediation of trackage use requests. 
‘‘28503. Surface Transportation Board mediation of rights-of-way use requests. 
‘‘28504. Applicability of other laws. 
‘‘28505. Rules and regulations. 
‘‘§ 28501. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘Board’ means the Surface 
Transportation Board; 
‘‘(2) the term ‘capital work’ means mainte-
nance, restoration, reconstruction, capacity enhance-
ment, or rehabilitation work on trackage that would 
be treated, in accordance with generally accepted ac-
counting principles, as a capital item rather than an 
expense; 
‘‘(3) the term ‘fixed guideway transportation’ 
means public transportation (as defined in section 
5302(a)(10)) provided on, by, or using a fixed guide-
way (as defined in section 5302(a)(4)); 
‘‘(4) the term ‘public transportation authority’ 
means a local governmental authority (as defined in 
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section 5302(a)(6)) established to provide, or make 
a contract providing for, fixed guideway transpor-
tation; 
‘‘(5) the term ‘rail carrier’ means a person, 
other than a governmental authority, providing com-
mon carrier railroad transportation for compensation 
subject to the jurisdiction of the Board under chap-
ter 105; 
‘‘(6) the term ‘segregated fixed guideway facil-
ity’ means a fixed guideway facility constructed 
within the railroad right-of-way of a rail carrier but 
physically separate from trackage, including relo-
cated trackage, within the right-of-way used by a 
rail carrier for freight transportation purposes; and 
‘‘(7) the term ‘trackage’ means a railroad line 
of a rail carrier, including a spur, industrial, team, 
switching, side, yard, or station track, and a facility 
of a rail carrier. 
‘‘§ 28502. Surface Transportation Board mediation of 
trackage use requests 
‘‘If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a 
rail carrier to use trackage of, and have related services 
provided by, the rail carrier for purposes of fixed guideway 
transportation, the public transportation authority or the 
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rail carrier may apply to the Board for nonbinding medi-
ation. The Board shall conduct the nonbinding mediation 
in accordance with the mediation process of section 1109.4 
of title 49, Code of Federal Regulations, as in effect on 
the date of enactment of this section. 
‘‘§ 28503. Surface Transportation Board mediation of 
rights-of-way use requests 
‘‘If, after a reasonable period of negotiation, a public 
transportation authority cannot reach agreement with a 
rail carrier to acquire an interest in a railroad right-of- 
way for the construction and operation of a segregated 
fixed guideway facility, the public transportation authority 
or the rail carrier may apply to the Board for nonbinding 
mediation. The Board shall conduct the nonbinding medi-
ation in accordance with the mediation process of section 
1109.4 of title 49, Code of Federal Regulations, as in ef-
fect on the date of enactment of this section. 
‘‘§ 28504. Applicability of other laws 
‘‘Nothing in this chapter shall be construed to limit 
a rail transportation provider’s right under section 
28103(b) to enter into contracts that allocate financial re-
sponsibility for claims. 
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‘‘§ 28505. Rules and regulations 
‘‘Not later than 180 days after the date of enactment 
of this section, the Board shall issue such rules and regu-
lations as may be necessary to carry out this chapter.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
of such subtitle is amended by adding after the item relat-
ing to chapter 283 the following: 
‘‘285. COMMUTER RAIL TRANSIT ENHANCEMENT ..................... 28501’’. 
SEC. 8204. CAPITAL COST OF CONTRACTING VANPOOL 
PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish and implement a pilot program to 
carry out vanpool demonstration projects in not more than 
3 urbanized areas and not more than 2 other than urban-
ized areas. 
(b) PILOT PROGRAM.— 
(1) IN
GENERAL.—Notwithstanding section 
5323(i) of title 49, United States Code, for each 
project selected for participation in the pilot pro-
gram, the Secretary shall allow the non-Federal 
share provided by a recipient of assistance for a cap-
ital project under chapter 53 of such title to include 
the amounts described in paragraph (2). 
(2) CONDITIONS ON ACQUISITION OF VANS.— 
The amount expended by a private provider of public 
transportation by vanpool for the acquisition of vans 
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to be used by such private provider in the recipient’s 
service area, excluding any amounts the provider 
may have received in Federal, State, or local govern-
ment assistance for such acquisition, if the private 
provider enters into a legally binding agreement with 
the recipient that requires the private provider to 
use all revenues it receives in providing public trans-
portation in such service area, in excess of its oper-
ating costs, for the purpose of acquiring vans to be 
used by the private provider in such service area. 
(c) PROGRAM TERM.—The Secretary may approve an 
application for a vanpool demonstration project for fiscal 
years 2008 through 2009. 
(d) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this Act, the Secretary shall 
transmit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate, a report containing an assessment of the costs, 
benefits, and efficiencies of the vanpool demonstration 
projects. 
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PART 2—FEDERAL-AID HIGHWAYS 
SEC. 
8251. 
INCREASED 
FEDERAL 
SHARE 
FOR 
CMAQ 
PROJECTS. 
Section 120(c) of title 23, United States Code, is 
amended— 
(1) in the subsection heading by striking ‘‘FOR 
CERTAIN SAFETY PROJECTS’’; 
(2) by striking ‘‘The Federal share’’ and insert-
ing the following: 
‘‘(1) CERTAIN
SAFETY
PROJECTS.—The Fed-
eral share’’; and 
(3) by adding at the end the following: 
‘‘(2) CMAQ PROJECTS.—The Federal share 
payable on account of a project or program carried 
out under section 149 with funds obligated in fiscal 
year 2008 or 2009, or both, shall be 100 percent of 
the cost thereof.’’. 
SEC. 8252. DISTRIBUTION OF RESCISSIONS. 
(a) IN GENERAL.—Any unobligated balances of 
amounts that are appropriated from the Highway Trust 
Fund for a fiscal year, and apportioned under chapter 1 
of title 23, United States Code, before, on, or after the 
date of enactment of this Act and that are rescinded after 
such date of enactment shall be distributed within each 
State (as defined in section 101 of such title) among all 
programs for which funds are apportioned under such 
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chapter for such fiscal year, to the extent sufficient funds 
remain available for obligation, in the ratio that the 
amount of funds apportioned for each program under such 
chapter for such fiscal year, bears to the amount of funds 
apportioned for all such programs under such chapter for 
such fiscal year. 
(b) TREATMENT
OF TRANSPORTATION ENHANCE-
MENT SET-ASIDE AND FUNDS SUBALLOCATED TO SUB-
STATE AREAS.—Funds set aside under sections 133(d)(2) 
and 133(d)(3) of title 23, United States Code, shall be 
treated as being apportioned under chapter 1 of such title 
for purposes of subsection (a). 
SEC. 8253. SENSE OF CONGRESS REGARDING USE OF COM-
PLETE STREETS DESIGN TECHNIQUES. 
It is the sense of Congress that in constructing new 
roadways or rehabilitating existing facilities, State and 
local governments should employ policies designed to ac-
commodate all users, including motorists, pedestrians, cy-
clists, transit riders, and people of all ages and abilities, 
in order to— 
(1) serve all surface transportation users by 
creating a more interconnected and intermodal sys-
tem; 
(2) create more viable transportation options; 
and 
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(3) facilitate the use of environmentally friendly 
options, such as public transportation, walking, and 
bicycling. 
Subtitle C—Railroad and Pipeline 
Transportation 
PART 1—RAILROADS 
SEC. 8301. ADVANCED TECHNOLOGY LOCOMOTIVE GRANT 
PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary of Transportation, 
in coordination with the Administrator of the Environ-
mental Protection Agency, shall establish and carry out 
a pilot program for making grants to railroad carriers (as 
defined in section 20102 of title 49, United States Code) 
and State and local governments— 
(1) for assistance in purchasing hybrid loco-
motives, including hybrid switch locomotives; and 
(2) to demonstrate the extent to which such lo-
comotives increase fuel economy, reduce emissions, 
and lower costs of operation. 
(b) LIMITATION.—Notwithstanding subsection (a), 
no grant under this section may be used to fund the costs 
of emissions reductions that are mandated under Federal, 
State, or local law. 
(c) GRANT CRITERIA.—In selecting applicants for 
grants under this section, the Secretary shall consider— 
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(1) the level of energy efficiency that would be 
achieved by the proposed project; 
(2) the extent to which the proposed project 
would assist in commercial deployment of hybrid lo-
comotive technologies; 
(3) the extent to which the proposed project 
complements other private or governmental partner-
ship efforts to improve air quality or fuel efficiency 
in a particular area; and 
(4) the extent to which the applicant dem-
onstrates innovative strategies and a financial com-
mitment to increasing energy efficiency and reducing 
greenhouse gas emissions of its railroad operations. 
(d) COMPETITIVE GRANT SELECTION PROCESS.— 
(1) APPLICATIONS.—A railroad carrier or State 
or local government seeking a grant under this sec-
tion shall submit for approval by the Secretary an 
application for the grant under this section con-
taining such information as the Secretary may re-
quire to receive a grant under this section. 
(2) COMPETITIVE SELECTION.—The Secretary 
shall conduct a national solicitation for applications 
for grants under this section and shall select grant-
ees on a competitive basis. 
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(e) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall not exceed 90 percent 
of the project cost. 
(f) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report on the results of the pilot program car-
ried out under this section. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$10,000,000 for each of the fiscal years 2008 through 
2011 to carry out this section. Such funds shall remain 
available until expended. 
SEC. 8302. CAPITAL GRANTS FOR RAILROAD TRACK. 
(a) AMENDMENT.—Chapter 223 of title 49, United 
States Code, is amended to read as follows: 
‘‘CHAPTER 223—CAPITAL GRANTS FOR 
RAILROAD TRACK 
‘‘Sec. 
‘‘22301. Capital grants for railroad track. 
‘‘§ 22301. Capital grants for railroad track 
‘‘(a) ESTABLISHMENT OF PROGRAM.— 
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Transportation shall establish a program of capital 
grants for the rehabilitation, preservation, or im-
provement of railroad track (including roadbed, 
bridges, and related track structures) of class II and 
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class III railroads. Such grants shall be for rehabili-
tating, preserving, or improving track used primarily 
for freight transportation to a standard ensuring 
that the track can be operated safely and efficiently, 
including grants for rehabilitating, preserving, or im-
proving track to handle 286,000 pound railcars. 
Grants may be provided under this chapter— 
‘‘(A) directly to the class II or class III 
railroad; or 
‘‘(B) with the concurrence of the class II 
or class III railroad, to a State or local govern-
ment. 
‘‘(2) STATE COOPERATION.—Class II and class 
III railroad applicants for a grant under this chap-
ter are encouraged to utilize the expertise and assist-
ance of State transportation agencies in applying for 
and administering such grants. State transportation 
agencies are encouraged to provide such expertise 
and assistance to such railroads. 
‘‘(3) INTERIM REGULATIONS.—Not later than 
December 31, 2007, the Secretary shall issue tem-
porary regulations to implement the program under 
this section. Subchapter II of chapter 5 of title 5 
does not apply to a temporary regulation issued 
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under this paragraph or to an amendment to such 
a temporary regulation. 
‘‘(4) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2008, the Secretary shall issue final regula-
tions to implement the program under this section. 
‘‘(b) MAXIMUM FEDERAL SHARE.—The maximum 
Federal share for carrying out a project under this section 
shall be 80 percent of the project cost. The non-Federal 
share may be provided by any non-Federal source in cash, 
equipment, or supplies. Other in-kind contributions may 
be approved by the Secretary on a case-by-case basis con-
sistent with this chapter. 
‘‘(c) PROJECT ELIGIBILITY.—For a project to be eli-
gible for assistance under this section the track must have 
been operated or owned by a class II or class III railroad 
as of the date of the enactment of this chapter. 
‘‘(d) USE OF FUNDS.—Grants provided under this 
section shall be used to implement track capital projects 
as soon as possible. In no event shall grant funds be con-
tractually obligated for a project later than the end of the 
third Federal fiscal year following the year in which the 
grant was awarded. Any funds not so obligated by the end 
of such fiscal year shall be returned to the Secretary for 
reallocation. 
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‘‘(e) EMPLOYEE PROTECTION.—The Secretary shall 
require as a condition of any grant made under this sec-
tion that the recipient railroad provide a fair arrangement 
at least as protective of the interests of employees who 
are affected by the project to be funded with the grant 
as the terms imposed under section 11326(a), as in effect 
on the date of the enactment of this chapter. 
‘‘(f) LABOR STANDARDS.— 
‘‘(1) PREVAILING WAGES.—The Secretary shall 
ensure that laborers and mechanics employed by 
contractors and subcontractors in construction work 
financed by a grant made under this section will be 
paid wages not less than those prevailing on similar 
construction in the locality, as determined by the 
Secretary of Labor under subchapter IV of chapter 
31 of title 40 (commonly known as the ‘Davis-Bacon 
Act’). The Secretary shall make a grant under this 
section only after being assured that required labor 
standards will be maintained on the construction 
work. 
‘‘(2) WAGE RATES.—Wage rates in a collective 
bargaining agreement negotiated under the Railway 
Labor Act (45 U.S.C. 151 et seq.) are deemed for 
purposes of this subsection to comply with the sub-
chapter IV of chapter 31 of title 40. 
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chapter and outstanding at one time may not exceed 
$2,000,000,000. 
‘‘(d) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States Government is pledged to the 
payment of a guarantee made under this chapter, for both 
principal and interest, including interest (as may be pro-
vided for in the guarantee) accruing between the date of 
default under a guaranteed obligation and the date of pay-
ment in full of the guarantee. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated $25,000,000 to carry out 
this section for each of fiscal years 2008 through 2011. 
‘‘§ 55604. Interagency coordination 
‘‘The Secretary of Transportation shall establish a 
board to identify and seek solutions to impediments hin-
dering effective use of short sea transportation. The board 
shall include representatives of the Environmental Protec-
tion Agency and other Federal, State, and local govern-
mental entities and private sector entities. 
‘‘§ 55605. Research on short sea transportation 
‘‘The Secretary of Transportation, in consultation 
with the Administrator of the Environmental Protection 
Agency, may conduct research on short sea transportation, 
regarding— 
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‘‘(1) the environmental and transportation ben-
efits to be derived from short sea transportation al-
ternatives for other forms of transportation; 
‘‘(2) technology, vessel design, and other im-
provements that would reduce emissions, increase 
fuel economy, and lower costs of short sea transpor-
tation and increase the efficiency of intermodal 
transfers; and 
‘‘(3) identify and seek solutions to impediments 
to short sea transportation projects designated 
under section 55601. 
‘‘§ 55606. Short sea transportation defined 
‘‘In this chapter, the term ‘short sea transportation’ 
means the carriage by vessel of cargo— 
‘‘(1) that is— 
‘‘(A) contained in intermodal cargo con-
tainers and loaded by crane on the vessel; or 
‘‘(B) loaded on the vessel by means of 
wheeled technology; and 
‘‘(2) that is— 
‘‘(A) loaded at a port in the United States 
and unloaded at another port in the United 
States or a port in Canada located in the Great 
Lakes Saint Lawrence Seaway System; or 
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‘‘(B) loaded at a port in Canada located in 
the Great Lakes Saint Lawrence Seaway Sys-
tem and unloaded at a port in the United 
States.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
at the beginning of subtitle V of such title is amended 
by inserting after the item relating to chapter 555 the fol-
lowing: 
‘‘556. Short Sea Transportation ....................................................55601’’. 
(c) REGULATIONS.— 
(1) INTERIM
REGULATIONS.—Not later than 
December 31, 2007, the Secretary of Transportation 
shall issue temporary regulations to implement the 
program under this section. Subchapter II of chap-
ter 5 of title 5, United States Code, does not apply 
to a temporary regulation issued under this para-
graph or to an amendment to such a temporary reg-
ulation. 
(2) FINAL REGULATIONS.—Not later than Oc-
tober 1, 2008, the Secretary shall issue final regula-
tions to implement the program under this section. 
SEC. 8402. SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL 
CONSTRUCTION FUND. 
(a) DEFINITION
OF QUALIFIED VESSEL.—Section 
53501 of title 46, United States Code, is amended— 
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(1) in paragraph (5)(A)(iii) by striking ‘‘or non-
contiguous domestic’’ and inserting ‘‘noncontiguous 
domestic, or short sea transportation trade’’; and 
(2) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) SHORT
SEA
TRANSPORTATION
TRADE.— 
The term ‘short sea transportation trade’ means the 
carriage by vessel of cargo— 
‘‘(A) that is— 
‘‘(i) contained in intermodal cargo 
containers and loaded by crane on the ves-
sel; or 
‘‘(ii) loaded on the vessel by means of 
wheeled technology; and 
‘‘(B) that is— 
‘‘(i) loaded at a port in the United 
States and unloaded at another port in the 
United States or a port in Canada located 
in the Great Lakes Saint Lawrence Sea-
way System; or 
‘‘(ii) loaded at a port in Canada lo-
cated in the Great Lakes Saint Lawrence 
Seaway System and unloaded at a port in 
the United States.’’. 
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