SEC. 1116. DEPLOYMENT OF MAGNETIC LEVITATION TRANS-
PORTATION PROJECTS. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eligi-
ble project costs’’—
(A) means the capital cost of the fixed 
guideway infrastructure of a MAGLEV project, 
including land, piers, guideways, propulsion 
equipment and other components attached to 
guideways, power distribution facilities (includ-
ing substations), control and communications fa-
cilities, access roads, and storage, repair, and 
maintenance facilities, but not including costs 
incurred for a new station; and 
(B) includes the costs of preconstruction 
planning activities. 
(2) FULL
PROJECT
COSTS.—The term ‘‘full 
project costs’’ means the total capital costs of a 
MAGLEV project, including eligible project costs and 
the costs of stations, vehicles, and equipment. 
(3) MAGLEV.—The term ‘‘MAGLEV’’ means 
transportation systems employing magnetic levitation 
that would be capable of safe use by the public at a 
speed in excess of 240 miles per hour.
(4) STATE.—The term ‘‘State’’ has the meaning 
such term has under section 101(a) of title 23, United 
States Code. 
(b) IN GENERAL.—
(1) ASSISTANCE FOR ELIGIBLE PROJECTS.—The 
Secretary shall make available financial assistance to 
pay the Federal share of full project costs of eligible 
projects authorized by this section. 
(2) USE OF ASSISTANCE.—Financial assistance 
provided under paragraph (1) shall be used only to 
pay eligible project costs of projects authorized by this 
section. 
(3) APPLICABILITY OF OTHER LAWS.—Financial 
assistance made available under this section, and 
projects assisted with such assistance, shall be subject 
to section 5333(a) of title 49, United States Code. 
(c) PROJECT ELIGIBILITY.—To be eligible to receive fi-
nancial assistance under subsection (b), a project shall—
(1) involve a segment or segments of a high-speed 
ground transportation corridor; 
(2) result in an operating transportation facility 
that provides a revenue producing service; and 
(3) be approved by the Secretary based on an 
application submitted to the Secretary by a State or 
authority designated by 1 or more States.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
this section $15,000,000 for fiscal year 2005 and 
$20,000,000 for each of fiscal years 2006 through 2009. 
(e) APPLICABILITY
OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by this sec-
tion shall be available for obligation in the same manner 
as if such funds were apportioned under chapter 1 of title 
23, United States Code; except that the Federal share of the 
full project costs of an eligible project shall be 80 percent, 
and such funds shall remain available until expended and 
shall not be transferable. 
SEC. 1117. RECREATIONAL TRAILS. 
(a) RECREATIONAL TRAILS PROGRAM FORMULA.—
Section 104(h)(1) of title 23, United States Code, is amend-
ed by striking ‘‘research and technical’’ and all that follows 
through ‘‘Committee’’ and inserting ‘‘research, technical as-
sistance, and training under the recreational trails pro-
gram’’. 
(b) PERMISSIBLE USES.—Section 206(d)(2) of such 
title is amended to read as follows: 
‘‘(2) PERMISSIBLE
USES.—Permissible uses of 
funds apportioned to a State for a fiscal year to carry 
out this section include—
‘‘(A) maintenance and restoration of exist-
ing recreational trails; 
‘‘(B) development and rehabilitation of 
trailside and trailhead facilities and trail link-
ages for recreational trails; 
‘‘(C) purchase and lease of recreational trail 
construction and maintenance equipment; 
‘‘(D) construction of new recreational trails, 
except that, in the case of new recreational trails 
crossing Federal lands, construction of the trails 
shall be—
‘‘(i) permissible under other law; 
‘‘(ii) necessary and recommended by a 
statewide comprehensive outdoor recreation 
plan that is required by the Land and 
Water Conservation Fund Act of 1965 (16 
U.S.C. 460l–4 et seq.) and that is in effect; 
‘‘(iii) approved by the administering 
agency of the State designated under sub-
section (c)(1); and 
‘‘(iv) approved by each Federal agency 
having jurisdiction over the affected lands 
under such terms and conditions as the 
head of the Federal agency determines to be 
appropriate, except that the approval shall
be contingent on compliance by the Federal 
agency with all applicable laws, including 
the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), the Forest 
and Rangeland Renewable Resources Plan-
ning Act of 1974 (16 U.S.C. 1600 et seq.), 
and the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1701 et seq.); 
‘‘(E) acquisition of easements and fee sim-
ple title to property for recreational trails or rec-
reational trail corridors; 
‘‘(F) assessment of trail conditions for ac-
cessibility and maintenance; 
‘‘(G) operation of educational programs to 
promote safety and environmental protection as 
those objectives relate to the use of recreational 
trails, but in an amount not to exceed 5 percent 
of the apportionment made to the State for the 
fiscal year; and 
‘‘(H) payment of costs to the State incurred 
in administering the program, but in an amount 
not to exceed 7 percent of the apportionment 
made to the State for the fiscal year to carry out 
this section.’’.
(c) USE OF APPORTIONMENTS.—Section 206(d)(3) of 
such title is amended—
(1) by striking subparagraph (C); 
(2) by redesignating subparagraph (D) as sub-
paragraph (C); and 
(3) in subparagraph (C) (as so redesignated) by 
striking ‘‘(2)(F)’’ and inserting ‘‘(2)(H)’’. 
(d) FEDERAL SHARE.—Section 206(f) of such title is 
amended—
(1) in paragraph (1)—
(A) by inserting ‘‘and the Federal share of 
the administrative costs of a State’’ after 
‘‘project’’; and 
(B) by striking ‘‘not exceed 80 percent’’ and 
inserting ‘‘be determined in accordance with sec-
tion 120(b)’’; 
(2) in paragraph (2)(A) by striking ‘‘80 percent 
of’’ and inserting ‘‘the amount determined in accord-
ance with section 120(b) for’’; 
(3) in paragraph (2)(B) by inserting ‘‘spon-
soring the project’’ after ‘‘Federal agency’’; 
(4) by striking paragraph (5); 
(5) by redesignating paragraph (4) as para-
graph (5);
(6) in paragraph (5) (as so redesignated) by 
striking ‘‘80 percent’’ and inserting ‘‘the Federal 
share as determined in accordance with section 
120(b)’’; and 
(7) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) USE OF RECREATIONAL TRAILS PROGRAM 
FUNDS
TO
MATCH
OTHER
FEDERAL
PROGRAM 
FUNDS.—Notwithstanding any other provision of law, 
funds made available under this section may be used 
toward the non-Federal matching share for other Fed-
eral program funds that are—
‘‘(A) expended in accordance with the re-
quirements of the Federal program relating to 
activities funded and populations served; and 
‘‘(B) expended on a project that is eligible 
for assistance under this section.’’. 
(e) PLANNING
AND ENVIRONMENTAL ASSESSMENT 
COSTS INCURRED PRIOR TO PROJECT APPROVAL.—Section 
206(h)(1) of such title is amended by adding at the end 
the following: 
‘‘(C) PLANNING
AND
ENVIRONMENTAL
AS-
SESSMENT COSTS INCURRED PRIOR TO PROJECT 
APPROVAL.—The Secretary may allow pre-ap-
proval planning and environmental compliance
costs to be credited toward the non-Federal share 
of the cost of a project described under subsection 
(d)(2) (other than subparagraph (I)) in accord-
ance with subsection (f), limited to costs incurred 
less than 18 months prior to project approval.’’. 
(f) ENCOURAGEMENT OF USE OF YOUTH CONSERVA-
TION OR SERVICE CORPS.—The Secretary shall encourage 
the States to enter into contracts and cooperative agree-
ments with qualified youth conservation or service corps to 
perform construction and maintenance of recreational 
trails under section 206 of title 23, United States Code. 
SEC. 1118. FEDERAL LANDS HIGHWAYS. 
(a) CONTRACTS
AND AGREEMENTS WITH INDIAN 
TRIBES.—Section 202(d)(3) of title 23, United States Code, 
is amended to read as follows: 
‘‘(3) CONTRACTS AND AGREEMENTS WITH INDIAN 
TRIBES.—
‘‘(A) IN
GENERAL.—Notwithstanding any 
other provision of law or any interagency agree-
ment, program guideline, manual, or policy di-
rective, all funds made available to an Indian 
tribal government under this title for a highway, 
road, bridge, parkway, or transit facility project 
that is located on an Indian reservation or pro-
vides access to the reservation or a community of
the Indian tribe shall be made available, on the 
request of the Indian tribal government, to the 
Indian tribal government for use in carrying 
out, in accordance with the Indian Self-Deter-
mination and Education Assistance Act (25 
U.S.C. 450 et seq.), contracts and agreements for 
the planning, research, engineering, and con-
struction relating to such project. 
‘‘(B) EXCLUSION
OF
AGENCY
PARTICIPA-
TION.—In accordance with subparagraph (A), 
all funds for a project to which subparagraph 
(A) applies shall be paid to the Indian tribal 
government without regard to the organizational 
level at which the Department of the Interior has 
previously carried out, or the Department of 
Transportation has previously carried out under 
the Federal lands highway programs, the pro-
grams, functions, services, or activities involved. 
‘‘(C) CONSORTIA.—Two or more Indian 
tribes that are otherwise eligible to participate in 
a project to which this title applies may form a 
consortium to be considered as a single Indian 
tribe for the purpose of participating in the 
project under this section.
‘‘(D) FUNDING.—The amount an Indian 
tribal government receives for a project under 
subparagraph (A) shall equal the sum of the 
funding that the Indian tribal government would 
otherwise receive for the project in accordance 
with the funding formula established under this 
subsection and such additional amount as the 
Secretary determines equal the amounts that 
would have been withheld for the costs of the Bu-
reau of Indian Affairs for administration of the 
project. 
‘‘(E) ELIGIBILITY.—An Indian tribal gov-
ernment may receive funding under subpara-
graph (A) for a project in a fiscal year if the In-
dian tribal government demonstrates to the satis-
faction of the Secretary financial stability and 
financial 
management 
capability 
as 
dem-
onstrated in the annual auditing required under 
the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) and, dur-
ing the preceding fiscal year, had no uncorrected 
significant and material audit exceptions in the 
required annual audit of the Indian tribe’s self-
determination contracts or self-governance fund-
ing agreements with any Federal agency.
‘‘(F) ASSUMPTION OF FUNCTIONS AND DU-
TIES.—An Indian tribal government receiving 
funding under subparagraph (A) for a project 
shall assume all functions and duties that the 
Secretary of the Interior would have performed 
with respect to projects under this chapter, other 
than those functions and duties that inherently 
cannot be legally transferred under the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450b et seq.). 
‘‘(G) POWERS.—An Indian tribal govern-
ment receiving funding under subparagraph (A) 
for a project shall have all powers that the Sec-
retary of the Interior would have exercised in ad-
ministering the funds transferred to the Indian 
tribal government for such project under this sec-
tion if such funds had not been transferred, ex-
cept to the extent that such powers are powers 
that inherently cannot be legally transferred 
under the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b et seq.). 
‘‘(H) DISPUTE RESOLUTION.—In the event 
of a disagreement between the Secretary of 
Transportation or the Secretary of the Interior 
and an Indian tribe over whether a particular
function, duty, or power may be lawfully trans-
ferred under the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b et 
seq.), the Indian tribe shall have the right to 
pursue all alternative dispute resolutions and 
appeal procedures authorized by such Act, in-
cluding regulations issued to carry out such 
Act.’’. 
(b) ALASKA NATIVE VILLAGE INVENTORY.—Section 
202(d)(2) of such title is amended by adding at the end 
the following: 
‘‘(E) ALASKA NATIVE ROAD INVENTORY.—
‘‘(i) IN
GENERAL.—For fiscal year 
2004 and each fiscal year thereafter, any al-
location of sums authorized to be appro-
priated for Indian reservation roads in 
Alaska shall be based on an inventory of 
roads within the exterior boundaries of vil-
lage corporation land selected pursuant to 
the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.) that includes all 
routes previously included in such an in-
ventory. The Secretary of Transportation 
and the Secretary of the Interior may in-
clude, in the inventory of roads, those pro-
posed for inclusion by tribal village govern-
ments from among community streets with-
in the village and those proposed primary 
access routes for inclusion by tribal village 
governments, including roads and trails be-
tween villages (including links over water), 
roads and trails to landfills, roads and 
trails to drinking water sources, roads and 
trails to natural resources identified for eco-
nomic development, and roads and trails 
that provide access to intermodal termini, 
such as airports, harbors, or boat landings. 
‘‘(ii) LIMITATION ON PRIMARY ACCESS 
ROUTES.—For purposes of this subpara-
graph, a proposed primary access route is 
the shortest practicable route connecting 2 
points of the proposed route.’’. 
(c) 
GRANTS
FOR
FINANCING
TRANSPORTATION 
DEBT.—Section 202(a) is amended by inserting before the 
period at the end the following: ‘‘; except that the Secretary 
may use up to 3 percent of such funds for making grants 
to Indian tribes for the purpose of financing transportation 
debt for individual Indian reservation roads subject to all 
requirements governing Federal assistance for Indian roads 
under this section and section 204’’.
(d) DEPUTY ASSISTANT SECRETARY OF TRANSPOR-
TATION FOR TRIBAL GOVERNMENT AFFAIRS.—Section 102 
of title 49, United States Code, is amended—
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the following: 
‘‘(f) DEPUTY ASSISTANT SECRETARY
FOR TRIBAL 
GOVERNMENT AFFAIRS.—The Department of Transpor-
tation shall have, within the office of the Secretary, a Dep-
uty Assistant Secretary for Tribal Government Affairs ap-
pointed by the President to plan, coordinate, and imple-
ment the Department of Transportation policy and pro-
grams serving Indian tribes and tribal organizations and 
to coordinate tribal transportation programs and activities 
in all offices and administrations of the Department and 
to be a participant in any negotiated rulemaking related 
to, or has impact on, projects, programs, or funding associ-
ated with the tribal transportation program.’’. 
SEC. 1119. RESERVED. 
SEC. 1120. PEDESTRIAN AND CYCLIST EQUITY. 
(a) SAFE ROUTES TO SCHOOL PROGRAM.—
(1) ESTABLISHMENT.—Subject to the require-
ments of this subsection, the Secretary shall establish 
and carry out a safe routes to school program for the 
benefit of children in primary and middle schools.
(2) PURPOSES.—The purposes of the program 
shall be—
(A) to enable and encourage children, in-
cluding those with disabilities, to walk and bicy-
cle to school; 
(B) to make bicycling and walking to school 
a safer and more appealing transportation alter-
native, thereby encouraging a healthy and active 
lifestyle from an early age; and 
(C) to facilitate the planning, development, 
and implementation of projects and activities 
that will improve safety and reduce traffic, fuel 
consumption, and air pollution in the vicinity of 
schools. 
(3) APPORTIONMENT OF FUNDS.—
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), amounts made available to 
carry out this subsection for a fiscal year shall 
be apportioned among the States in the ratio 
that—
(i) the total student enrollment in pri-
mary and middle schools in each State; 
bears to 
(ii) the total student enrollment in pri-
mary and middle schools in all the States.
(B) MINIMUM APPORTIONMENT.—No State 
shall receive an apportionment under this sub-
section for a fiscal year of less than $2,000,000. 
(C) 
SET-ASIDE.—Before 
apportioning 
amounts made available to carry out this sub-
section under this paragraph for a fiscal year, 
the Secretary shall set aside not more than 2 
percent of such amounts for the administrative 
expenses of the Secretary in carrying out this 
subsection. 
(D) DETERMINATION OF STUDENT ENROLL-
MENTS.—Determinations under this paragraph 
concerning student enrollments shall be made by 
the Secretary. 
(4) ADMINISTRATION
OF
AMOUNTS.—Amounts 
apportioned to a State under this subsection shall be 
administered by the State’s department of transpor-
tation. 
(5) ELIGIBLE
RECIPIENTS.—Amounts appor-
tioned to a State under this subsection shall be used 
by the State to provide financial assistance to State, 
local, and regional agencies, including nonprofit or-
ganizations, that demonstrate an ability to meet the 
requirements of this subsection. 
(6) ELIGIBLE PROJECTS AND ACTIVITIES.—
(A) 
INFRASTRUCTURE-RELATED 
PROJECTS.—
(i) IN
GENERAL.—Amounts appor-
tioned to a State under this subsection may 
be used for the planning, design, and con-
struction of infrastructure-related projects 
that will substantially improve the ability 
of students to walk and bike to school, in-
cluding 
sidewalk 
improvements, 
traffic 
calming and speed reduction improvements, 
pedestrian and bicycle crossing improve-
ments, on-street bicycle facilities, off-street 
bicycle and pedestrian facilities, secure bi-
cycle parking facilities, and traffic diver-
sion improvements in the vicinity of 
schools. 
(ii) LOCATION
OF
PROJECTS.—Infra-
structure-related projects under subpara-
graph (A) may be carried out on any public 
road or any bicycle or pedestrian pathway 
or trail in the vicinity of schools. 
(B) NONINFRASTRUCTURE-RELATED ACTIVI-
TIES.—
(i) IN
GENERAL.—In addition to 
projects described in subparagraph (A),
amounts apportioned to a State under this 
subsection may be used for noninfrastruc-
ture-related activities to encourage walking 
and bicycling to school, including public 
awareness campaigns and outreach to press 
and community leaders, traffic education 
and enforcement in the vicinity of schools, 
student sessions on bicycle and pedestrian 
safety, health, and environment, and fund-
ing for training, volunteers, and managers 
of safe routes to school programs. 
(ii) ALLOCATION.—Not less than 10 
percent and not more than 30 percent of the 
amount apportioned to a State under this 
subsection for a fiscal year shall be used for 
noninfrastructure-related activities under 
this subparagraph. 
(C) SAFE
ROUTES
TO
SCHOOL
COORDI-
NATOR.—Each State receiving an apportionment 
under this subsection for a fiscal year shall use 
a sufficient amount of the apportionment to fund 
a full-time position of coordinator of the State’s 
safe routes to school program. 
(7) CLEARINGHOUSE.—
(A) IN
GENERAL.—The Secretary shall 
make grants to a national nonprofit organiza-
tion engaged in promoting safe routes to schools 
to—
(i) operate a national safe routes to 
school clearinghouse; 
(ii) develop information and edu-
cational programs on safe routes to school; 
and 
(iii) provide technical assistance and 
disseminate techniques and strategies used 
for successful safe routes to school programs. 
(B) FUNDING.—The Secretary shall carry 
out this paragraph using amounts set aside for 
administrative expenses under paragraph (3)(C). 
(8) TASK FORCE.—
(A) IN GENERAL.—The Secretary shall es-
tablish a national safe routes to school task force 
composed of leaders in health, transportation, 
and education, including representatives of ap-
propriate Federal agencies, to study and develop 
a strategy for advancing safe routes to school 
programs nationwide. 
(B) REPORT.—Not later than March 30, 
2005, the Secretary shall transmit to Congress a
report containing the results of the study con-
ducted, and a description of the strategy devel-
oped, under subparagraph (A) and information 
regarding the use of funds for infrastructure-re-
lated and noninfrastructure-related activities 
under subparagraphs (A) and (B) of paragraph 
(6). 
(C) FUNDING.—The Secretary shall carry 
out this paragraph using amounts set aside for 
administrative expenses under paragraph (3)(C). 
(9) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that such funds shall not 
be transferable and shall remain available until ex-
pended and the Federal share of the cost of a project 
or activity under this section shall be 100 percent. 
Notwithstanding any other provision of law, projects 
assisted under this subsection shall be treated as 
projects on a Federal-aid system under such chapter. 
(10) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
(A) IN
THE
VICINITY
OF
SCHOOLS.—The 
term ‘‘in the vicinity of schools’’ means, with re-
spect to a school, the area within bicycling and 
walking distance of the school (approximately 2 
miles). 
(B) PRIMARY AND MIDDLE SCHOOLS.—The 
term ‘‘primary and middle schools’’ means 
schools providing education from kindergarten 
through eighth grade. 
(C) STATE.—The term ‘‘State’’ has the 
meaning such term has in section 101(a) of title 
23, United States Code. 
(b) NONMOTORIZED TRANSPORTATION PILOT PRO-
GRAM.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a nonmotorized transportation 
pilot program to construct, in 4 communities selected 
by the Secretary, a network of nonmotorized transpor-
tation infrastructure facilities, including sidewalks, 
bicycle lanes, and pedestrian and bicycle trails, that 
connect directly with transit stations, schools, resi-
dences, businesses, recreation areas, and other commu-
nity activity centers. 
(2) PURPOSE.—The purpose of the program shall 
be to demonstrate the extent to which bicycling and 
walking can carry a significant part of the transpor-
tation load, and represent a major portion of the 
transportation solution, within selected communities. 
(3) GRANTS.—In carrying out the program, the 
Secretary may make grants to State, local, and re-
gional agencies, that the Secretary determines are 
suitably equipped and organized to carry out the ob-
jectives and requirements of this subsection. An agen-
cy that receives a grant under this subsection may 
suballocate grant funds to a nonprofit organization to 
carry out the program under this subsection. 
(4) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of 
the cost of a project carried out under this subsection 
shall be 80 percent, and such funds shall not be trans-
ferable and shall remain available until expended. 
(5) STATISTICAL
INFORMATION.—In carrying 
out the program, the Secretary shall develop statis-
tical information on changes in motor vehicle, non-
motorized transportation, and public transportation 
usage in communities participating in the program 
and assess how such changes decrease congestion and 
energy usage, increase the frequency of biking and
walking, and promote better health and a cleaner en-
vironment. 
(6) REPORTS.—The Secretary shall transmit to 
Congress an interim report not later than September 
30, 2007, and a final report not later than September 
30, 2010, on the results of the program. 
SEC. 1121. NATIONAL COMMISSIONS. 
(a) NATIONAL COMMISSION
ON FUTURE REVENUE 
SOURCES TO SUPPORT THE HIGHWAY TRUST FUND.—
(1) ESTABLISHMENT.—There is established a 
National Commission on Future Revenue Sources to 
Support the Highway Trust Fund to conduct—
(A) a study evaluating alternative short-
term sources of Highway Trust Fund revenue to 
support the requirements of section 1124; and 
(B) a study evaluating alternative long-
term sources of revenue to support the Highway 
Trust Fund, considering the findings, conclu-
sions, and recommendations of a recent study by 
the Transportation Research Board of the Na-
tional Academy of Sciences on alternatives to the 
fuel tax to support highway program financing 
and other relevant prior research. 
(2) FUNCTIONS.—The Commission shall—
(A) develop recommendations to generate 
Highway Trust Fund revenue necessary to ac-
complish the requirements of section 1124; 
(B) oversee a comprehensive investigation of 
alternatives to replace the fuel tax as the prin-
cipal revenue source to support the Highway 
Trust Fund over at least the next 30 years; 
(C) consult with the Secretary of Transpor-
tation and the Secretary of the Treasury to as-
sure that their views concerning essential at-
tributes of Highway Trust Fund revenue alter-
natives are understood; 
(D) assure that State transportation agency 
views on alternative revenue sources to support 
State transportation improvement programs are 
appropriately considered and that any rec-
ommended Federal financing strategy take into 
account State financial requirements; and 
(E) make specific recommendations regard-
ing actions that need to be taken to develop alter-
native revenue sources to support the Highway 
Trust Fund and when those actions must be 
taken.
(3) SPECIFIC MATTERS TO BE ADDRESSED.—The 
study under paragraph (1)(B)shall address specifi-
cally—
(A) advantages and disadvantages of alter-
native revenue sources to meet anticipated Fed-
eral surface transportation financial require-
ments; 
(B) the time frame within which actions 
must be taken to transition from the fuel tax to 
alternative revenue sources to support the High-
way Trust Fund; 
(C) recommendations concerning the most 
promising revenue sources to support long-term 
Federal surface transportation financing require-
ments; 
(D) development of a broad transition strat-
egy to move from the current tax base to new 
funding mechanisms, including the time frame 
for various aspects of the transition strategy; 
(E) recommendations for additional re-
search that may be needed to implement rec-
ommended alternatives; and 
(F) the extent to which revenues should re-
flect the relative use of the highway system.
(4) MATTERS TO CONSIDER AND EVALUATE.—To 
the maximum extent feasible, the Commission, in con-
ducting the study under paragraph (1)(B), shall con-
sider and evaluate other related work that has been 
done by the Department of Transportation, the De-
partment of Energy, the Transportation Research 
Board, and others. In developing recommendations 
under paragraph (2), the Commission shall con-
sider—
(A) the ability to generate sufficient reve-
nues to meet anticipated long term surface trans-
portation financing needs; 
(B) the roles of the various levels of govern-
ment and the private sector in meeting future 
surface transportation financing needs; 
(C) administrative costs, including enforce-
ment, to implement each option; 
(D) potential taxpayer privacy concerns; 
(E) likely technological advances that could 
ease implementation of each option; 
(F) the equity and economic efficiency of 
each option; 
(G) the flexibility of different options to 
allow various pricing alternatives to be imple-
mented; and
(H) potential compatibility issues with 
States tax mechanisms under each alternative. 
(5) MEMBERSHIP.—
(A) COMPOSITION.—The Commission shall 
be composed of nine members of whom—
(i) three members shall be appointed 
by the Secretary; 
(ii) two members shall be appointed by 
the Speaker of the House of Representatives; 
(iii) one member shall be appointed by 
the minority leader of the House of Rep-
resentatives; 
(iv) two members shall be appointed by 
the majority leader of the Senate; and 
(v) one member shall be appointed by 
the minority leader of the Senate. 
(B) QUALIFICATIONS.—Members appointed 
under subparagraph (A) shall have experience in 
public finance, surface transportation program 
administration, managing organizations that 
use surface transportation facilities, academic 
research into related issues, or other activities 
that provide unique perspectives on current and 
future requirements for revenue sources to sup-
port the Highway Trust Fund.
(C) TERMS.—Members shall be appointed 
for the life of the Commission. 
(D) VACANCIES.—A vacancy on the Com-
mission shall be filled in the manner in which 
the original appointment was made. 
(E) TRAVEL
EXPENSES.—Members shall 
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsistence, 
in accordance with sections 5702 and 5703 of 
title 5, United States Code. 
(F) CHAIRMAN.—The Chairman of the 
Commission shall be elected by the members. 
(6) STAFF.—
(A) IN
GENERAL.—The Commission may 
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the studies 
under this subsection, but the Commission shall 
provide strategic guidance for the studies. 
(B) DETAIL STAFF.—Upon request of the 
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the De-
partment of Transportation to the Commission 
to assist the Commission in carrying out its du-
ties under this subsection.
(C) COOPERATION.—The Secretary shall co-
operate with the Commission in conducting the 
studies under this subsection, including pro-
viding the Commission with such nonconfiden-
tial data and information as necessary for con-
ducting and completing the study. 
(7) ADMINISTRATIVE SUPPORT SERVICES.—Upon 
the request of the Commission, the Secretary shall 
provide to the Commission, on a reimbursable basis, 
the administrative support and services necessary for 
the Commission to carry out its responsibilities under 
this subsection. 
(8) REPORTS AND RECOMMENDATIONS.——
(A) REVENUE
ACTIONS.—Not later than 
September 30, 2005, the Commission shall trans-
mit to Congress a report on revenue actions that 
would support the requirements of section 1124. 
(B) ALTERNATIVE LONG-TERM SOURCES OF 
REVENUE.—Not later than September 30, 2006, 
the Commission shall transmit to Congress a re-
port on the results of the study conducted under 
paragraph (1)(B), relating to alternative long-
term sources of revenue to support the Highway 
Trust Fund, including recommendations to ad-
dress the needs identified in the study.
(9) TERMINATION.—The Commission shall ter-
minate on the 180th day following the date of trans-
mittal of the report under paragraph (8)(B). By such 
180th day, the Commission shall deliver all records 
and papers of the Commission to the Archivist of the 
United States for deposit in the National Archives. 
(10) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the High-
way Trust Fund (other than the Mass Transit Ac-
count) $1,500,000 for each of fiscal years 2004 and 
2005 to carry out this subsection. 
(11) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of 
the cost of activities carried out under this subsection 
shall be 100 percent, and such funds shall remain 
available until expended. 
(b) DECLARATION OF POLICY REGARDING FUTURE OF 
THE
INTERSTATE
HIGHWAY
SYSTEM
STUDY.—Section 
101(b) of title 23, United States Code, is amended by strik-
ing the last paragraph and inserting the following: ‘‘It is 
further declared that it is in the national interest to pre-
serve and enhance the Dwight D. Eisenhower National Sys-
tem of Interstate and Defense Highways to meet the Na-
tion’s needs for the 21st century. The current urban and 
long distance personal travel and freight movement de-
mands have surpassed the vision of the original Interstate 
System and travel demand patterns are expected to change. 
Continued planning for and investment in the Interstate 
System is critical to assure it adequately meets the chang-
ing travel demands of the future. Among the foremost needs 
that the Interstate System must provide are safe, efficient, 
and reliable (1) national and interregional personal mobil-
ity, (2) flow of interstate commerce, and (3) travel move-
ments essential for national security. To the maximum ex-
tent, actions under this title should address congestion, safe-
ty, and freight transportation to provide for a strong and 
vigorous national economy. The Interstate System is hereby 
declared to be the Nation’s premiere highway system, essen-
tial for the Nation’s economic vitality, national security, 
and general welfare. The Secretary of Transportation is di-
rected to take appropriate actions to preserve and enhance 
the Interstate System to meet the needs of the 21st century 
in accordance with this title.’’. 
(c) NATIONAL COMMISSION ON FUTURE OF INTER-
STATE HIGHWAY SYSTEM.—
(1) ESTABLISHMENT.—There is established a 
National Commission on the Future of the Dwight D.
Eisenhower National System of Interstate and De-
fense Highways (in this subsection referred to as the 
‘‘Interstate System’’). 
(2) FUNCTION.—The Commission shall—
(A) conduct a study of the current condition 
and future of the Interstate System and develop 
a conceptual plan with alternative approaches 
for the future of the Interstate System to assure 
that the Interstate System will continue to serve 
the needs of the Nation; 
(B) assure that State transportation agency 
views are considered; and 
(C) make specific recommendations regard-
ing those design standards, Federal policies, and 
legislative changes that must be made to assure 
the national interests are served in meeting fu-
ture Interstate System needs. 
(3) SPECIFIC MATTERS TO BE ADDRESSED.—The 
Commission shall assure that the study under this 
subsection specifically addresses the following: 
(A) CURRENT
CONDITION.—The current 
condition and performance of the Interstate Sys-
tem, including physical condition of bridges and 
pavements and operational characteristics and
performance, shall be examined, relying pri-
marily on existing data sources. 
(B) FUTURE ASSESSMENT.—The future of 
the Interstate System, based on a range of legis-
lative and policy approaches for 15-, 30-, and 
50-year horizons. 
(4) SPECIFIC
ISSUES
AND
DETAILS
TO
AD-
DRESS.—The following specific issues and details 
shall be addressed as a part of the study under this 
subsection: 
(A) 
DEMOGRAPHICS.—Expected 
demo-
graphics and business uses that impact transpor-
tation. 
(B) USAGE.—Expected system use and ef-
fects of changing vehicle types, fleet size and 
weights, and traffic volumes. 
(C) 
NATURAL
DISASTER.—Seismic 
and 
other vulnerabilities and their potential impacts. 
(D) DESIGN STANDARDS.—Desirable design 
policies and standards for future improvements, 
including safety improvement and additional ac-
cess points. 
(E) SYSTEM
WIDE
NEEDS.—Identification 
of both urban and rural needs.
(F) POTENTIAL
SYSTEM
EXPANSION, UP-
GRADES, OR OTHER CHANGES.—Deployment of 
advanced materials and intelligent technologies; 
critical multi-state rural corridors needing ca-
pacity, safety, and operational enhancements; 
urban and multi-state corridor additions; by-
passes of major cities that ensure efficient long-
haul travel; improvements to inter-modal link-
ages; strategies to enhance asset preservation; 
and implementation strategies. 
(G) COMMUNITY VALUES.—Consideration of 
alternative approaches to maintaining or en-
hancing community values in those neighbor-
hoods adjacent to the Interstate System. 
(H) ENVIRONMENTAL
ISSUES.—Consider-
ation of alternative approaches to addressing en-
vironmental concerns relative to recommended 
alternatives. 
(I) 
SYSTEM
PERFORMANCE.—Evaluation 
and assessment of the current and future capa-
bilities for conducting system-wide real-time per-
formance data collection and analysis, traffic 
monitoring, system operations and management. 
(5) ALTERNATIVES.—A range of policy rec-
ommendations shall be developed as a part of the plan
under this subsection to address identified future 
needs of the Interstate System. The alternatives shall 
include funding needs and potential approaches to 
provide those funds. 
(6) MEMBERSHIP.—
(A) COMPOSITION.—The Commission shall 
be composed of nine members of whom—
(i) three members shall be appointed 
by the Secretary; 
(ii) two members shall be appointed by 
the Speaker of the House of Representatives; 
(iii) one member shall be appointed by 
the minority leader of the House of Rep-
resentatives; 
(iv) two members shall be appointed by 
the majority leader of the Senate; and 
(v) one member shall be appointed by 
the minority leader of the Senate. 
(B) QUALIFICATIONS.—Members appointed 
under subparagraph (A) shall be appointed from 
among individuals that have a concern for 
maintaining a strong role for the Interstate Sys-
tem in the future of the Nation and may include 
representatives from Federal, State, and local 
governments, other transportation authorities or
agencies, and organizations representing surface 
transportation owners and operators. 
(C) TERMS.—Members shall be appointed 
for the life of the Commission. 
(D) VACANCIES.—A vacancy in the Com-
mission shall be filled in the manner in which 
the original appointment was made. 
(E) TRAVEL
EXPENSES.—Member shall 
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsistence, 
in accordance with sections 5702 and 5703 of 
title 5, United States Code. 
(F) CHAIRMAN.—The Chairman of the 
Commission shall be elected by the members. 
(7) STAFF.—
(A) IN
GENERAL.—The Commission may 
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the study under 
this subsection, but the Commission shall provide 
strategic guidance for the study. 
(B) DETAIL STAFF.—Upon request of the 
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the De-
partment of Transportation to the Commission
to assist the Commission in carrying out its du-
ties under this subsection. 
(C) COOPERATION.—The Secretary shall co-
operate with the Commission in the study, in-
cluding providing the Commission with such 
nonconfidential data and information as nec-
essary for conducting and completing the study. 
(8) ADMINISTRATIVE SUPPORT SERVICES.—Upon 
the request of the Commission, the Secretary shall 
provide to the Commission, on a reimbursable basis, 
the administrative support and services necessary for 
the Commission to carry out its responsibilities under 
this subsection. 
(9) REPORT AND RECOMMENDATIONS.—Not later 
than September 30, 2006, the Commission shall trans-
mit to Congress a final report on the results of the 
study conducted under this subsection, including rec-
ommendations to address the needs identified in the 
study. 
(10) TERMINATION.—The Commission shall ter-
minate on the 180th day following the date of trans-
mittal of the report under paragraph (9). By such 
180th day, the Commission shall deliver all records 
and papers of the Commission to the Archivist of the 
United States for deposit in the National Archives.
(11) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the High-
way Trust Funds (other than the Mass Transit Ac-
count) to carry out this subsection $1,000,000 for each 
of fiscal years 2005 and 2006. 
(12) APPLICABILITY
OF
TITLE
23, 
UNITED 
STATES CODE.—Funds authorized to be appropriated 
by this section shall be available for obligation in the 
same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that the Federal share of the cost of activities carried 
out under this subsection shall be 100 percent and 
such funds shall remain available until expended. 
SEC. 1122. ADJUSTMENTS FOR THE SURFACE TRANSPOR-
TATION EXTENSION ACT OF 2003. 
[Reserved] 
SEC. 1123. ROADWAY SAFETY. 
(a) ROAD SAFETY.—
(1) IN GENERAL.—The Secretary shall enter into 
an agreement to assist in the activities of a national 
nonprofit organization that is dedicated solely to im-
proving public road safety—
(A) by improving the quality of data per-
taining to public road hazards and design fea-
tures that affect or increase the severity of motor 
vehicle crashes; 
(B) by developing and carrying out a pub-
lic awareness campaign to educate State and 
local transportation officials, public safety offi-
cials, and motorists regarding the extent to 
which public road hazards and design features 
are a factor in motor vehicle crashes; and 
(C) by promoting public road safety re-
search and technology transfer activities. 
(2) FUNDING.—There is authorized to be appro-
priated from the Highway Trust Fund (other than 
the Mass Transit Account) $500,000 for each of fiscal 
years 2004 through 2009 to carry out this subsection. 
(3) APPLICABILITY OF TITLE 23.—Funds made 
available by this subsection shall be available for obli-
gation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States 
Code, except that the funds shall remain available 
until expended. 
(b) BICYCLE AND PEDESTRIAN SAFETY GRANTS.—
(1) IN
GENERAL.—The Secretary shall make 
grants to a national, not-for-profit organization en-
gaged in promoting bicycle and pedestrian safety—
(A) to operate a national bicycle and pedes-
trian clearinghouse; 
(B) to develop information and educational 
programs; and 
(C) to disseminate techniques and strategies 
for improving bicycle and pedestrian safety. 
(2) FUNDING.—There is authorized to be appro-
priated from the Highway Trust Fund (other than 
the Mass Transit Account) $500,000 for each of fiscal 
years 2004 through 2009 to carry out this subsection. 
(3) APPLICABILITY OF TITLE 23.—Funds made 
available by this subsection shall be available for obli-
gation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States 
Code, except that the funds shall remain available 
until expended. 
SEC. 1124. EQUITY REQUIREMENT. 
(a) IN GENERAL.—The Secretary may not apportion 
before August 1, 2006, any funds for any of the programs 
referred to in subsection (b) for fiscal year 2006 unless, after 
the date of enactment of this Act, a law has been enacted 
that—
(1) increases the guaranteed rate of return pur-
suant to section 105 of title 23, United States Code, 
to 92 percent in fiscal year 2006, 93 percent in fiscal
year 2007, 94 percent in fiscal year 2008, and 95 
percent in fiscal year 2009; and 
(2) requires that each State receive apportion-
ments for such programs for each of such fiscal years 
that in the aggregate are at least equal to the greater 
of—
(A) the State’s minimum guaranteed rate of 
return required under paragraph (1); and 
(B) the State’s prior fiscal year’s appor-
tioned highway funds for programs referred in 
subsection (b) plus an amount equal to the 
State’s prior year apportioned funds for such 
programs multiplied by the percentage increase 
in the consumer price index during the 12-month 
period ending June 30 of the calendar year in 
which the fiscal year begins. 
(b) APPLICABILITY.—The withholding of apportioned 
funds under subsection (a) shall apply to the following pro-
grams: 
(1) The National Highway System program 
under section 103(b) of title 23, United States Code. 
(2) The high priority projects program under 
section 117 of such title. 
(3) The Interstate maintenance program under 
section 119 of such title.
(4) The surface transportation program under 
section 133 of such title. 
(5) Metropolitan planning under chapter 52 of 
title 49, United States Code. 
(6) The highway bridge replacement and reha-
bilitation program under section 144 of title 23, 
United States Code. 
(7) The congestion mitigation and air quality 
improvement program under section 149 of such title. 
(8) The recreational trails program under sec-
tion 206 of such title. 
(9) The Appalachian development highway sys-
tem under subtitle IV of title 40, United States Code. 
(10) The freight intermodal connectors program 
under section 1303 of this Act. 
(11) The coordinated border infrastructure pro-
gram under section 1302 of this Act. 
(12) The high risk rural road safety improve-
ment program under section 1403 of this Act. 
(13) The safe routes to schools program under 
section 1120 of this Act. 
(14) The minimum guarantee program under 
section 105 of title 23, United States Code. 
(c) CONSIDERATION OF COMMISSION FINDINGS.—In 
considering a law that increases the guaranteed rate of re-
turn referred to in subsection (a), Congress should consider 
the findings of the report on alternative short-term sources 
of Highway Trust Fund revenue to be published by the Na-
tional Commission on Future Revenue Sources to Support 
the Highway Trust Fund pursuant to section 1121 of this 
Act. 
Subtitle B—Congestion Relief 
SEC. 1201. MOTOR VEHICLE CONGESTION RELIEF. 
(a) IN GENERAL.—Title 23, United States Code, is 
amended by inserting after section 138 the following: 
‘‘§ 139. Motor vehicle congestion relief 
‘‘(a) IN GENERAL.—Each State that has an urbanized 
area with an urbanized area population of over 200,000 
individuals shall obligate in each of fiscal years 2004 
through 2009 a portion of the State’s apportionments under 
section 104(b) in such fiscal year, as calculated under sub-
section (b), for congestion relief activities in such urbanized 
areas in accordance with this section. 
‘‘(b) CALCULATION OF AMOUNT.—The portion of a 
State’s apportionments for a fiscal year to be obligated for 
congestion relief activities under subsection (a) shall be de-
termined by multiplying—
‘‘(1) the total of amounts apportioned to the 
State under each of paragraphs (1), (2), (3), and (4) 
of section 104(b) in such fiscal year; by
‘‘(2) 10 percent; by 
‘‘(3) the percentage of the State’s population re-
siding in urbanized areas of the State with an urban-
ized area population of over 200,000 individuals. 
‘‘(c) ALLOCATION BETWEEN UNDER ONE AND UNDER 
THREE CONGESTION RELIEF ACTIVITIES.—Of the total 
amount of a State’s apportionments to be obligated for con-
gestion relief activities for a fiscal year as calculated under 
subsection (b)—
‘‘(1) 40 percent shall be obligated for under one 
congestion relief activities; 
‘‘(2) 35 percent shall be obligated for under three 
congestion relief activities; and 
‘‘(3) 25 percent shall be obligated at the discre-
tion of the State department of transportation for 1 
or more of the following: 
‘‘(A) Under one congestion relief activities. 
‘‘(B) Under three congestion relief activities. 
‘‘(C) Capital costs for transit projects that 
are eligible for assistance under chapter 53 of 
title 49. 
‘‘(D) Demand relief projects and activities 
that shift demand to non-peak hours or to other 
modes of transportation or that reduce the over-
all level of demand for roads through such means
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section. 
‘‘(g) TRANSFERS.—
‘‘(1) IN GENERAL.—A State may transfer a por-
tion of the amount that the State must obligate for 
under one congestion relief activities in a fiscal year 
under this section to the amount the State must obli-
gate for under three congestion relief activities under 
this section if the State certifies to the Secretary that 
there are no under one congestion relief activities for 
which such portion can be obligated in such fiscal 
year and the Secretary does not disapprove such 
transfer within 30 days after the date of such certifi-
cation. 
‘‘(2) LIMITATION.—The amount that a State 
may transfer in a fiscal year under this subsection 
may not reduce the amount the State must obligate 
for under one congestion relief activities to less than 
10 percent of the total amount of the State’s appor-
tionments to be obligated for congestion relief activi-
ties for such fiscal year as calculated under subsection 
(b). 
‘‘(3) TREATMENT.—Amounts transferred by a 
State under this subsection for a fiscal year shall be
included in the amount of the State’s apportionments 
allocated for under three congestion relief activities 
for such fiscal year under subsection (c)(2). 
‘‘(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘‘(1) CONGESTION RELIEF ACTIVITIES.—
‘‘(A) IN
GENERAL.—The term ‘congestion 
relief activity’ means any activity, project, or 
program that has as its primary purpose, as de-
termined by the State transportation depart-
ment, the relief of motor vehicle congestion. 
‘‘(B) INCLUSIONS.—Such term includes the 
following: 
‘‘(i) Relief of motor vehicle congestion 
through additional capacity, construction of 
additional lanes, improvements to inter-
changes, improved access to major termi-
nals, construction of parallel roads, con-
struction of truck only lanes, and major ar-
terial improvements. 
‘‘(ii) Transportation systemwide oper-
ational improvements targeted at increasing 
motor vehicle travel reliability through such 
means as incident management programs,
traffic monitoring and surveillance, and 
traveler information initiatives. 
‘‘(iii) Maximizing efficient use of exist-
ing motor vehicle travel capacity through 
such means as reversible lanes, coordinated 
traffic signalization, and managed lanes or 
other lane management strategies. 
‘‘(C) EXCLUSIONS.—Such term does not in-
clude demand relief projects and activities that 
shift demand to non-peak hours or to other 
modes of transportation or that reduce the over-
all level of demand for roads through such means 
as telecommuting, ridesharing, alternative work 
hour programs, and value pricing. 
‘‘(2) UNDER ONE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under one congestion relief activity’ 
means a congestion relief activity that—
‘‘(A) will be completed within one year after 
the date of commencement of onsite improve-
ments; 
‘‘(B) has a total projected cost of less than 
$1,000,000; and 
‘‘(C) will improve conditions in the appli-
cable urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization. 
‘‘(3) UNDER THREE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under three congestion relief activi-
ties’ means congestion relief activities that—
‘‘(A) will be completed within 3 years after 
the date of commencement of onsite improve-
ments; and 
‘‘(B) will improve conditions in the appli-
cable urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter I of such title is amended by inserting after the 
item relating to section 138 the following:
‘‘139. Motor vehicle congestion relief.’’.
(c) MOTOR VEHICLE DEFINED.—Title 23, United 
States Code, is amended—
(1) in section 154(a)(2), relating to the defini-
tion of motor vehicle, by inserting ‘‘streets, roads, 
and’’ before ‘‘highways’’; 
(2) by redesignating paragraph (2) of section 
154(a) as paragraph (38); 
(3) by moving such redesignated paragraph from 
section 154(a) to the end of section 101(a);
(4) by redesignating paragraphs (3) and (4) of 
section 154(a) as paragraphs (2) and (3), respec-
tively; 
(5) in section 153(i)—
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; 
(6) in section 164(a)(4) by striking ‘‘means’’ and 
all that follows through ‘‘rail line or’’ and inserting 
‘‘does not include’’; and 
(7) in section 405(f)—
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3), (4), 
(5), and (6) as paragraphs (2), (3), (4), and (5). 
SEC. 1202. TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS. 
(a) DEFINITIONS.—
(1) OPERATING
COSTS
FOR
TRAFFIC
MONI-
TORING, 
MANAGEMENT, 
AND
CONTROL.—Section 
101(a)(17) of title 23, United States Code, is amended 
by inserting ‘‘transportation systems management 
and operations and’’ after ‘‘associated with’’. 
(2) 
OPERATIONAL
IMPROVEMENT.—Section 
101(a)(18)(A)(i) of such title is amended—
100
(A) by inserting ‘‘transportation systems 
management and operations, including’’ after 
‘‘for’’; and 
(B) by inserting ‘‘equipment and programs 
for transportation response to natural disasters,’’ 
after ‘‘incident management programs,’’. 
(3) TRANSPORTATION
SYSTEMS
MANAGEMENT 
AND OPERATIONS.—Section 101(a) of such title is fur-
ther amended by adding at the end the following: 
‘‘(39) TRANSPORTATION SYSTEMS MANAGEMENT 
AND OPERATIONS.—
‘‘(A) IN
GENERAL.—The term ‘transpor-
tation systems management and operations’ 
means an integrated program to optimize the 
performance of existing infrastructure through 
the implementation of multimodal and inter-
modal, cross-jurisdictional systems, services, and 
projects designed to preserve capacity and im-
prove the security, safety, and reliability of Fed-
eral-aid highways. 
‘‘(B) INCLUDED ACTIVITIES AND IMPROVE-
MENTS.—The term includes regional operations 
collaboration and coordination activities between 
transportation and public safety agencies and 
improvements such as traffic detection and sur-
101
veillance, arterial management, freeway manage-
ment, demand management, work zone manage-
ment, emergency management, electronic toll col-
lection, automated enforcement, traffic oper-
ations measures to improve capacity, traffic sig-
nal coordination, optimization of traffic signal 
timing, traffic incident management, roadway 
weather management, traveler information serv-
ices, commercial vehicle operations, traffic con-
trol, freight management, and coordination of 
highway, rail, transit, bicycle, and pedestrian 
operations.’’. 
(b) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5) of 
such title is amended by inserting ‘‘improve transportation 
systems management and operations,’’ after ‘‘intersections,’’
(c) SURFACE
TRANSPORTATION
PROGRAM
ELIGI-
BILITY.—Section 133(b) of such title is amended—
(1) by redesignating paragraphs (13) and (14) 
as paragraphs (12) and (13), respectively; and 
(2) by adding at the end the following: 
‘‘(14) Regional transportation operations col-
laboration and coordination activities that are associ-
ated with regional improvements, including activities 
for traffic incident management, technology deploy-
102
ment, emergency management and response, traveler 
information, and regional congestion relief.’’. 
(d) NATIONAL HIGHWAY SYSTEM ELIGIBILITY.—Sec-
tion 103(b)(6) of such title is amended by adding at the 
end the following: 
‘‘(Q) Capital, operating, and systems main-
tenance costs for transportation systems manage-
ment and operations.’’. 
(e) TRANSPORTATION SYSTEMS MANAGEMENT AND OP-
ERATIONS.—Subchapter I of chapter 1 of such title is fur-
ther amended by adding at the end the following: 
‘‘§ 166. Transportation systems management and oper-
ations 
‘‘(a) AUTHORITY.—The Secretary may—
‘‘(1) encourage transportation system managers, 
operators, public safety officials, and transportation 
planners within an urbanized area, who are actively 
engaged in and responsible for conducting activities 
relating to day-to-day management, operations, pub-
lic safety, and planning of transportation facilities 
and services, to collaborate and coordinate on a re-
gional level in a continuous and sustained manner 
for improved transportation systems management and 
operations, including, at a minimum—
103
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared by 
all transportation and public safety participants 
for how the region’s systems should be managed, 
operated, and measured; 
‘‘(B) sharing of information among opera-
tors, service providers, public safety officials, and 
the general public; and 
‘‘(C) guiding, in a regionally-coordinated 
manner, the implementation of regional trans-
portation system management and operations 
initiatives, including emergency evacuation and 
response, traffic incident management, tech-
nology deployment, and traveler information sys-
tems delivery, in a manner consistent with and 
integrated into the ongoing metropolitan and 
statewide transportation planning processes and 
regional intelligent transportation system archi-
tecture, if required; and 
‘‘(2) encourage States to establish a system of 
basic real-time monitoring capability for the surface 
transportation system and provide the capability and 
means to share that data among agencies (including 
highway, transit, and public safety agencies), juris-
dictions (including States, cities, counties, and areas
104
represented by metropolitan planning organizations), 
private-sector entities, and the traveling public. 
‘‘(b) EXECUTION.—To support the successful execution 
of transportation systems management and operations ac-
tivities, the Secretary may undertake the following activi-
ties: 
‘‘(1) Assist and cooperate with other Federal de-
partments and agencies, State and local governments, 
metropolitan planning organizations, private indus-
try representatives, and other interested parties to im-
prove regional collaboration and real-time informa-
tion sharing between transportation system managers 
and operators, public safety officials, emergency man-
agers, and the general public to increase the security, 
safety, and reliability of Federal-aid highways. 
‘‘(2) Issue, if necessary, new guidance or regula-
tions for the procurement of transportation system 
management and operations facilities, equipment, 
and services, including equipment procured in prepa-
ration for natural disasters and emergencies, system 
hardware, software, and software integration serv-
ices.’’. 
(f) CONFORMING AMENDMENT.—The analysis for such 
chapter is further amended by adding at the end the fol-
lowing:
‘‘166. Transportation systems management and operations.’’.
105
(g) INTELLIGENT TRANSPORTATION SYSTEM PRO-
CUREMENT POLICY.—
(1) STUDY.—The Secretary shall—
(A) conduct a study of the current policies 
and practices for the procurement of intelligent 
transportation system facilities, equipment, and 
services; and 
(B) develop a conceptual plan with alter-
native approaches for expediting and stream-
lining such procurements at the State level. 
(2) RECOMMENDATIONS.—Based on the results of 
the study, the Secretary shall make recommendations 
in the report under paragraph (4) regarding procure-
ment standards, including recommendations regard-
ing any changes in Federal and State statutes, regu-
lations, and policies necessary to ensure that national 
interests are served in meeting future intelligent 
transportation system needs. 
(3) SPECIFIC MATTERS TO BE ADDRESSED.—The 
study under this subsection shall specifically address 
the following: 
(A) CURRENT
CONDITION.—The current 
practices and policies relating to procurement of 
intelligent 
transportation 
system 
facilities, 
equipment, and services, including equipment
106
procured in preparation for natural disasters 
and emergencies, system hardware, software, and 
software integration services. 
(B) ASSESSMENT OF NEED FOR POLICY RE-
FORM.—The ability of current practices and 
policies to achieve the successful implementation 
of intelligent transportation system goals and the 
need for national policy reform to expedite and 
streamline procurements necessary to meet such 
goals. 
(C) ALTERNATIVES.—The range of legisla-
tive, regulatory, and policy alternatives to ad-
dress identified needs and goals, including fund-
ing needs. 
(D) 
RECOMMENDATIONS.—Recommenda-
tions regarding procurement standards, includ-
ing recommendations regarding any changes in 
Federal and State statutes, regulations, and poli-
cies necessary for expedited and streamlined pro-
curements. 
(4) REPORT AND RECOMMENDATIONS.—Not later 
than September 30, 2005, the Secretary shall trans-
mit to the appropriate committees of Congress a final 
report regarding the results of the study conducted
107
under this subsection and recommendations to address 
the needs identified in such study. 
(5) INITIATION OF RULEMAKING PROCEEDING.—
To the extent any recommendation made by the Sec-
retary under this subsection may be implemented by 
regulation, the Secretary shall initiate a rulemaking 
proceeding to address such recommendation not later 
than the 90th day following the date of submission of 
the report under paragraph (4). 
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the High-
way Trust Fund (other than the Mass Transit Ac-
count) $1,000,000 in fiscal year 2004 to carry out 
this subsection. 
(7) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of 
the cost of the study under this subsection shall be 100 
percent and such funds shall remain available until 
expended. 
SEC. 1203. REAL-TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM. 
(a) ESTABLISHMENT.—
108
(1) IN GENERAL.—The Secretary shall establish 
a real-time system management information program 
to provide, in all States, the capability to monitor, in 
real-time, the traffic and travel conditions of the Na-
tion’s major highways and to share that information 
to improve the security of the surface transportation 
system, to address congestion problems, to support im-
proved response to weather events and surface trans-
portation incidents, and to facilitate national and re-
gional highway traveler information. 
(2) PURPOSES.—The purposes of the real-time 
system management information program are to—
(A) establish, in all States, a system of 
basic real-time information for managing and 
operating the surface transportation system; 
(B) identify longer range real-time highway 
and transit monitoring needs and develop plans 
and strategies for meeting such needs; and 
(C) provide the capability and means to 
share that data with State and local govern-
ments and the traveling public. 
(b) NATIONAL STEERING COMMITTEE.—
(1) IN GENERAL.—The Secretary shall establish 
a national steering committee to assist in the develop-
ment of data exchange formats under subsection (c).
109
(2) REPRESENTATIVES.—The national steering 
committee shall consist of representatives of State 
transportation departments, metropolitan planning 
organizations, local governments, nonprofit entities, 
the private sector, and academia. 
(3) PURPOSE.—The purpose of the national 
steering committee shall be to provide guidance re-
garding the content and uniformity of data exchange 
formats. 
(c) DATA EXCHANGE FORMATS.—Not later than 2 
years after the date of enactment of this Act, the Secretary 
shall establish data exchange formats based on recommenda-
tions of the steering committee established under subsection 
(b) to ensure that the data provided by highway and transit 
monitoring systems, including statewide incident reporting 
systems, can readily be exchanged across jurisdictional 
boundaries, facilitating nationwide availability of informa-
tion. 
(d) REGIONAL INTELLIGENT TRANSPORTATION SYS-
TEM ARCHITECTURE.—
(1) 
ADDRESSING
INFORMATION
NEEDS.—As 
State and local governments develop or update re-
gional intelligent transportation system architectures, 
described in section 940.9 of title 23, Code of Federal 
Regulations, such governments shall explicitly address
110
real-time highway and transit information needs and 
the systems needed to meet such needs, including ad-
dressing coverage, monitoring systems, data fusion 
and archiving, and methods of exchanging or sharing 
highway and transit information. 
(2) DATA EXCHANGE.—States shall incorporate 
the data exchange formats established by the Sec-
retary under subsection (c) to ensure that the data 
provided by highway and transit monitoring systems 
may readily be exchanged with State and local gov-
ernments and may be made available to the traveling 
public. 
(e) ELIGIBILITY.—Subject to project approval by the 
Secretary, a State may obligate funds apportioned to the 
State under sections 104(b)(1), 104(b)(2), and 104(b)(3) of 
title 23, United States Code, for activities related to the 
planning and deployment of real-time monitoring elements 
that advance the goals and purposes described in subsection 
(a). 
(f) LIMITATION
ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or oth-
erwise affecting the applicability of the requirements of 
chapter 1 of title 23, United States Code (including require-
ments relating to the eligibility of a project for assistance 
under the program, the location of the project, and the Fed-
111
eral-share payable on account of the project), to amounts 
apportioned to a State for a program under section 104(b) 
that are obligated by the State for activities and projects 
under this section. 
(g) STATEWIDE INCIDENT REPORTING SYSTEM DE-
FINED.—In this section, the term ‘‘statewide incident re-
porting system’’ means a statewide system for facilitating 
the real-time electronic reporting of surface transportation 
incidents to a central location for use in monitoring the 
event, providing accurate traveler information, and re-
sponding to the incident as appropriate. 
SEC. 1204. EXPEDITED NATIONAL INTELLIGENT TRANSPOR-
TATION SYSTEMS DEPLOYMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish a 
comprehensive program to accelerate the integration, inter-
operability, and deployment of intelligent transportation 
systems in order to improve the performance of the surface 
transportation system in metropolitan and rural areas. 
(b) SELECTION
OF MODEL PROJECTS.—Under the 
program, the Secretary may make grants, through competi-
tive solicitation, for projects that will serve as models to 
improve transportation efficiency, promote surface trans-
portation safety (including safe freight movement), increase 
traffic flow (including the flow of intermodal travel at ports 
of entry), reduce emissions of air pollutants, improve trav-
112
eler information, enhance alternative transportation modes, 
build on existing intelligent transportation system projects, 
and promote tourism. 
(c) OTHER PROJECTS, PROGRAMS, AND ACTIVITIES.—
Under the program, the Secretary may make grants for 
projects, programs, and activities in metropolitan and 
rural areas that—
(1) contribute to national deployment goals and 
objectives outlined in the national intelligent trans-
portation system program plan; 
(2) promote cooperation among agencies, juris-
dictions, and the private sector, as evidenced by 
signed memoranda of understanding that clearly de-
fine the responsibilities and relations of all parties to 
a partnership arrangement, including institutional 
relationships and financial agreements needed to sup-
port deployment of intelligent transportation systems; 
(3) encourage private sector involvement and fi-
nancial commitment to such deployment to the max-
imum extent practicable through innovative financial 
arrangements, especially public-private partnerships, 
including arrangements that generate revenue to offset 
public investment costs; 
(4) enhance fully integrated intelligent transpor-
tation system deployment;
113
(5) create technical capacity for effective oper-
ations and maintenance of such systems; 
(6) improve safety, mobility, geographic and re-
gional diversity, and economic development in de-
ployment of such systems; 
(7) advance deployment of the 511 traveler infor-
mation program; and 
(8) advance deployment of other national sys-
tems, including a statewide incident reporting system, 
wireless e-911 system, and road weather information 
system. 
(d) APPLICABILITY
OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated under section 
1101(a)(16) of this Act shall be available for obligation to 
carry out subsection (c)(7) in the same manner and to the 
same extent as if such funds were apportioned under chap-
ter 1 of title 23, United States Code; except that the Federal 
share of the cost of projects carried out under subsection 
(c)(7) shall be 80 percent and such funds shall remain 
available until expended. 
SEC. 1205. INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT. 
(a) PURPOSE.—The purpose of this section is to ensure 
that a minimum of $3,000,000,000 of the amounts author-
ized to be appropriated for the National Highway System,
114
Interstate maintenance, surface transportation, and conges-
tion mitigation and air quality improvement programs for 
fiscal years 2004 through 2009 is utilized to expand deploy-
ment of intelligent transportation systems. 
(b) IN GENERAL.—Chapter 1 of title 23, United States 
Code, is amended by inserting after section 149 the fol-
lowing: 
‘‘§ 150. Deployment of intelligent transportation sys-
tems 
‘‘(a) IN GENERAL.—In each of fiscal years 2004 
through 2009, each State shall obligate a portion of the 
funds apportioned to the State under sections 104(b)(1), 
104(b)(2), 104(b)(3), and 104(b)(4) for such fiscal year, cal-
culated under subsection (b), for projects described in sub-
section (c) that support deployment of intelligent transpor-
tation systems in the State. 
‘‘(b) CALCULATION OF AMOUNT.—The portion of a 
State’s apportionments to be obligated under subsection (a) 
for projects described in subsection (c) in a fiscal year shall 
be determined by multiplying $500,000,000 by the ratio 
that—
‘‘(1) the aggregate of amounts apportioned to the 
State for such fiscal year under sections 104(b)(1), 
104(b)(2), 104(b)(3), and 104(b)(4); bears to
115
‘‘(2) the aggregate of amounts apportioned to all 
States for such fiscal year under such sections. 
‘‘(c) INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT PROJECTS.—Projects for which funds must be 
obligated under this section include the following: 
‘‘(1) PERFORMANCE.—Establishment and imple-
mentation of operations systems and services that im-
prove performance in the areas of traffic operations, 
emergency response to surface transportation inci-
dents, surface transportation incident management, 
weather event response management by State and 
local authorities, surface transportation network and 
facility management, construction and work zone 
management, and traffic flow information. 
‘‘(2) NETWORKS.—Conducting activities that 
support the creation of networks that link metropoli-
tan and rural surface transportation systems into an 
integrated data network, capable of collecting, shar-
ing, and archiving transportation system traffic con-
dition and performance information. 
‘‘(3) SAFETY.—Implementation of intelligent 
transportation system technologies that improve high-
way safety through linkages connecting the vehicle, 
the infrastructure, and information to the driver.
116
‘‘(4) OPERATION AND MANAGEMENT.—Provision 
of services necessary to ensure the efficient operation 
and management of intelligent transportation systems 
infrastructure, including costs associated with com-
munications, utilities, rent, hardware, software, labor, 
administrative costs, training, and technical services. 
‘‘(5) INTERAGENCY SUPPORT.—Provision of sup-
port for institutional relationships between transpor-
tation agencies, police, emergency medical services, 
private emergency operators, freight operators, and 
shippers. 
‘‘(6) PLANNING.—Conducting cross-jurisdictional 
planning and deployment of regional transportation 
systems operations and management approaches. 
‘‘(d) OBLIGATION OF AMOUNTS.—
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by 
a State for projects under subsection (c) that support 
deployment of intelligent transportation systems in 
such State under subsection (a) shall be allocated 
among the individual programs for which funds are 
apportioned under sections 104(b)(1), 104(b)(2), 
104(b)(3), and 104(b)(4). 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed
117
as requiring a State to obligate proportional or equal 
amounts 
under 
sections 
104(b)(1), 
104(b)(2), 
104(b)(3), and 104(b)(4) for any congestion relief ac-
tivity under this section. 
‘‘(e) LIMITATION
ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or oth-
erwise affecting the applicability of the requirements of this 
chapter (including requirements relating to the eligibility 
of a project for assistance under the program, the location 
of the project, and the Federal-share payable on account of 
the project) to amounts apportioned to a State for a pro-
gram under section 104(b) that are obligated by the State 
for projects under this section. 
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section.’’. 
(c) CONFORMING AMENDMENT.—The analysis for such 
chapter is amended by inserting after the item relating to 
section 149 the following:
‘‘150. Deployment of intelligent transportation systems.’’.
SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT 
SUPPORT 
DEPLOYMENT 
OF 
INTELLIGENT 
TRANSPORTATION SYSTEMS. 
(a) CATEGORICAL EXCLUSIONS.—Not later than one 
year after the date of enactment of this Act, the Secretary 
shall initiate a rulemaking process to establish, to the extent
118
appropriate, categorical exclusions for activities that sup-
port the deployment of intelligent transportation infra-
structure and systems from the requirement that an envi-
ronmental assessment or an environmental impact state-
ment be prepared under section 102 of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (42 
U.S.C. 4332) in compliance with the standards for categor-
ical exclusions established by that Act. 
(b) NATIONWIDE PROGRAMMATIC AGREEMENT.—
(1) DEVELOPMENT.—The Secretary shall develop 
a nationwide programmatic agreement governing the 
review of activities that support the deployment of in-
telligent transportation infrastructure and systems in 
accordance with section 106 of the National Historic 
Preservation Act (16 U.S.C. 470f) and the regulations 
of the Advisory Council on Historic Preservation. 
(2) CONSULTATION.—The Secretary shall develop 
the agreement under paragraph (1) in consultation 
with the National Conference of State Historic Preser-
vation Officers and the Advisory Council on Historic 
Preservation established under title II of the National 
Historic Preservation Act (26 U.S.C. 470i et seq.) 
and after soliciting the views of other interested par-
ties
119
(c) INTELLIGENT TRANSPORTATION INFRASTRUCTURE 
AND SYSTEMS DEFINED.—In this section, the term ‘‘intel-
ligent transportation infrastructure and systems’’ means 
intelligent transportation infrastructure and intelligent 
transportation systems, as such terms are defined in section 
5607. 
SEC. 1207. ASSUMPTION OF RESPONSIBILITY FOR CERTAIN 
PROGRAMS AND PROJECTS. 
[Reserved.] 
SEC. 1208. HOV FACILITIES. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘§ 167. HOV facilities 
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY OF STATE AGENCIES.—A State 
agency that has jurisdiction over the operation of a 
HOV facility shall establish the occupancy require-
ments of vehicles operating on the facility. 
‘‘(2) OCCUPANCY REQUIREMENT.—Except as oth-
erwise provided by this section, no fewer than 2 occu-
pants per vehicle may be required for use of a HOV 
facility. 
‘‘(b) EXCEPTIONS.—Notwithstanding the occupancy 
requirements of subsection (a)(2), the following exceptions
120
shall apply with respect to a State agency operating a HOV 
facility: 
‘‘(1) MOTORCYCLES AND BICYCLES.——
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility. 
‘‘(B) SAFETY EXCEPTION.—A State agency 
may restrict use of the HOV facility by motor-
cycles or bicycles (or both) if the agency certifies 
to the Secretary that such use would create a 
safety hazard and the Secretary accepts the cer-
tification. The Secretary may accept a certifi-
cation under this subparagraph only after the 
Secretary publishes notice of the certification in 
the Federal Register and provides an oppor-
tunity for public comment. 
‘‘(2) PUBLIC TRANSPORTATION VEHICLES.—The 
State agency may allow public transportation vehicles 
to use the HOV facility if the agency—
‘‘(A) establishes requirements for clearly 
identifying the vehicles; and 
‘‘(B) establishes procedures for enforcing the 
restrictions on the use of the facility by such ve-
hicles.