exchanging or sharing highway and transit informa-
tion. 
(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 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 ele-
ments 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 
otherwise affecting the applicability of the requirements 
of chapter 1 of title 23, United States Code (including 
requirements relating to the eligibility of a project for as-
sistance 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 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, 
interoperability, and deployment of intelligent transpor-
tation 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 com-
petitive solicitation, for projects that will serve as models 
to improve transportation efficiency, promote surface 
transportation safety (including safe freight movement), 
increase traffic flow (including the flow of intermodal trav-
el at ports of entry), reduce emissions of air pollutants, 
improve traveler information, enhance alternative trans-
portation modes, build on existing intelligent transpor-
tation system projects, and promote tourism.
(c) OTHER PROJECTS, PROGRAMS, AND ACTIVI-
TIES.—Under the program, the Secretary may make 
grants for projects, programss and activities in metropoli-
tan 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 
support deployment of intelligent transportation sys-
tems; 
(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 off-
set public investment costs; 
(4) enhance fully integrated intelligent trans-
portation system deployment; 
(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 in-
formation program; and 
(8) advance deployment of other national sys-
tems, including a statewide incident reporting sys-
tem, wireless e-911 system, and road weather infor-
mation system. 
(d) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated under sec-
tion 1101(a)(16) of this Act shall be available for obliga-
tion to carry out subsection (c)(7) in the same manner 
and to the same extent as if such funds were apportioned 
under chapter 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 en-
sure that a minimum of $3,000,000,000 of the amounts 
authorized to be appropriated for the National Highway 
System, Interstate maintenance, surface transportation, 
and congestion mitigation and air quality improvement
programs for fiscal years 2004 through 2009 is utilized 
to expand deployment of intelligent transportation sys-
tems. 
(b) IN GENERAL.—Chapter 1 of title 23, United 
States Code, is amended by inserting after section 149 the 
following: 
‘‘§ 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, 
calculated under subsection (b), for projects described in 
subsection (c) that support deployment of intelligent 
transportation 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
100
‘‘(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 im-
plementation of operations systems and services that 
improve performance in the areas of traffic oper-
ations, emergency response to surface transportation 
incidents, surface transportation incident manage-
ment, 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 
highway safety through linkages connecting the vehi-
cle, the infrastructure, and information to the driver.
101
‘‘(4) OPERATION
AND
MANAGEMENT.—Provi-
sion of services necessary to ensure the efficient op-
eration and management of intelligent transpor-
tation systems infrastructure, including costs associ-
ated with communications, utilities, rent, hardware, 
software, labor, administrative costs, training, and 
technical services. 
‘‘(5) INTERAGENCY
SUPPORT.—Provision of 
support for institutional relationships between trans-
portation agencies, police, emergency medical serv-
ices, private emergency operators, freight operators, 
and shippers. 
‘‘(6) 
PLANNING.—Conducting 
cross-jurisdic-
tional planning and deployment of regional transpor-
tation systems operations and management ap-
proaches. 
‘‘(d) OBLIGATION OF AMOUNTS.—In complying with 
the requirements of this section, the amounts obligated by 
a State for projects under subsection (c) that support de-
ployment 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).
102
‘‘(e) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or 
otherwise affecting the applicability of the requirements 
of this chapter (including requirements relating to the eli-
gibility 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 program 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 relat-
ing to section 149 the following:
‘‘150. Deployment of intelligent transportation systems.’’.
SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT 
SUPPORT 
DEPLOYMENT 
OF 
INTELLIGENT 
TRANSPORTATION SYSTEMS. 
[Reserved.] 
SEC. 1207. ASSUMPTION OF RESPONSIBILITY FOR CERTAIN 
PROGRAMS AND PROJECTS. 
[Reserved.] 
SEC. 1208. HOV LANES. 
[Reserved.]
103
SEC. 1209. CONGESTION PRICING PILOT PROGRAM. 
[Reserved.] 
Subtitle C—Mobility and Efficiency 
SEC. 1301. NATIONAL CORRIDOR INFRASTRUCTURE IM-
PROVEMENT PROGRAM. 
[Reserved.]
SEC. 1302. COORDINATED BORDER INFRASTRUCTURE PRO-
GRAM. 
(a) GENERAL AUTHORITY.—The Secretary shall im-
plement a coordinated border infrastructure program 
under which the Secretary shall distribute funds to border 
States to improve the safe movement of motor vehicles at 
or across the border between the United States and Can-
ada and the border between the United States and Mexico. 
(b) ELIGIBLE USES.—A State may use funds appor-
tioned under this section only for—
(1) improvements in a border region to existing 
transportation and supporting infrastructure that fa-
cilitate cross-border motor vehicle and cargo move-
ments; 
(2) construction of highways and related safety 
and safety enforcement facilities in a border region 
that facilitate motor vehicle and cargo movements 
related to international trade; 
(3) operational improvements in a border re-
gion, including improvements relating to electronic
104
data interchange and use of telecommunications, to 
expedite cross border motor vehicle and cargo move-
ment; 
(4) modifications to regulatory procedures to 
expedite safe and efficient cross border motor vehicle 
and cargo movements; and 
(5) international coordination of transportation 
planning, programming, and border operation with 
Canada and Mexico relating to expediting cross bor-
der motor vehicle and cargo movements. 
(c) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among bor-
der States sums authorized to be appropriated to carry 
out this section for such fiscal year as follows: 
(1) 20 percent in the ratio that—
(A) the total number of incoming commer-
cial trucks that pass through the land border 
ports of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of incoming commer-
cial trucks that pass through such ports of 
entry within the boundaries of all the border 
States, as determined by the Secretary. 
(2) 30 percent in the ratio that—
105
(A) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through land border ports of entry within the 
boundaries of a border State, as determined by 
the Secretary; bears to 
(B) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through such ports of entry within the bound-
aries of all the border States, as determined by 
the Secretary. 
(3) 25 percent in the ratio that—
(A) the total weight of incoming cargo by 
commercial trucks that pass through land bor-
der ports of entry within the boundaries of a 
border State, as determined by the Secretary; 
bears to 
(B) the total weight of incoming cargo by 
commercial trucks that pass through such ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(4) 25 percent of the ratio that—
(A) the total number of land border ports 
of entry within the boundaries of a border 
State, as determined by the Secretary; bears to
106
(B) the total number of land border ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(d) APPLICABILITY
OF TITLE 23.—Funds made 
available to carry out this section shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable and shall 
remain available until expended and the Federal share of 
the cost of a project under this section shall be 80 percent. 
(e) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) BORDER REGION.—The term ‘‘border re-
gion’’ means any portion of a border State within 20 
miles of an international land border with Canada or 
Mexico. 
(2) BORDER STATE.—The term ‘‘border State’’ 
means any State that has an international land bor-
der with Canada or Mexico. 
(3) COMMERCIAL TRUCK.—The term ‘‘commer-
cial truck’’ means a commercial motor vehicle as de-
fined in section 31301(4) (other than subparagraph 
(B)) of title 49, United States Code.
107
(4) MOTOR VEHICLE.—The term ‘‘motor vehi-
cle’’ has the meaning such term has under section 
101(a) of title 23, United States Code. 
(5) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of such title 23. 
SEC. 1303. FREIGHT INTERMODAL CONNECTORS. 
(a) IN GENERAL.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight intermodal connector program to 
improve productivity and improve the efficiency of 
the transportation of freight, while mitigating con-
gestion in the area of freight intermodal connectors. 
(2) PURPOSES.—The purposes of the program 
shall be—
(A) to facilitate and support intermodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
intermodal connectors and mitigate the impact 
of congestion in the area of such connectors; 
and 
(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight intermodal connectors. 
(b) STATE RESPONSIBILITIES.—Under the program, 
each State shall ensure that intermodal freight transpor-
108
tation and trade facilitation and are adequately addressed 
integrated into the project development process, including 
transportation planning, through final design and con-
struction of freight related transportation projects. 
(c) ELIGIBLE PROJECTS.—
(1) IN GENERAL.—Projects eligible for funding 
under this section may include the construction of 
and improvements to publicly owned freight inter-
modal connectors, the provision of access to such 
connectors, and operational improvements for such 
connectors (including capital investment for intel-
ligent transportation systems); except that a project 
located within the boundaries of an intermodal 
freight facility shall only include highway infrastruc-
ture modifications necessary to facilitate direct inter-
modal access between the connector and the facility. 
(2) SPECIAL RULE.—If a State that does not 
have any freight intermodal connectors within its 
boundaries or has only freight intermodal connectors 
within its boundaries that are in good condition and 
provide an adequate level of service, projects within 
the boundaries of the State that are eligible for as-
sistance under section 103(b)(6) of title 23, United 
States Code, relating to the National Highway Sys-
tem, shall be eligible for funding under this section.
109
(d) PRIORITY.—Under the program, a State shall 
give priority to projects on freight intermodal connectors 
to the National Highway System as identified according 
to the criteria set forth in the report of the Department 
of Transportation to Congress entitled ‘Pulling Together: 
The NHS and its Connections to Major Intermodal Termi-
nals’. 
(e) APPORTIONMENT.—On October 1 of each fiscal 
year, the Secretary shall apportion among the States sums 
made available to carry out this section for such fiscal year 
as follows: 
(1) 33.3 percent in the ratio that—
(A) the number of freight intermodal con-
nectors identified in the most recent Intermodal 
Freight Connectors study of the Federal High-
way Administration within the boundaries of a 
State; bears to 
(B) the total number of such connectors 
within the boundaries of all the States. 
(2) 33.3 percent in the ratio that—
(A) the total of each State’s annual con-
tributions to the Highway Trust Fund (other 
than the Mass Transit Account) attributable to 
commercial motor vehicles; bears to
110
(B) the total of such annual contributions 
by all States. 
(3) 33.4 percent in the same ratios as funds are 
apportioned for the National Highway System under 
clauses (i), (ii), (iii), and (iv) of section 104(b)(1)(A) 
of title 23, United States Code. 
(f) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion 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 expended and the Federal share of the cost 
of a project under this section shall be 80 percent. 
(g) UPDATE REPORT.—Not later than August 1, 
2005, the Secretary shall publish an update to the report 
entitled ‘‘Pulling Together: the National Highway System 
and its Connections to Major Intermodal Terminals’’. 
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FREIGHT INTERMODAL CONNECTORS.—The 
term ‘‘freight intermodal connector’’ means the 
roadway that connects to an intermodal freight facil-
ity that carries or will carry intermodal traffic. 
(2) INTERMODAL
FREIGHT
FACILITY.—The 
term ‘‘intermodal freight facility’’ means a port, air-
111
port, truck-rail terminal, and pipeline-truck ter-
minal. 
(3) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of title 23, 
United States Code.
SEC. 1304. PROJECTS OF NATIONAL AND REGIONAL SIG-
NIFICANCE. 
(a) FINDINGS.—Congress finds the following: 
(1) Under current law, surface transportation 
programs rely primarily on formula capital appor-
tionments to States. 
(2) Despite the significant increase for surface 
transportation program funding in the Transpor-
tation Equity Act of the 21st Century, current levels 
of investment are insufficient to fund critical high-
cost transportation infrastructure facilities that ad-
dress critical national economic and transportation 
needs. 
(3) Critical high-cost transportation infrastruc-
ture facilities often include multiple levels of govern-
ment, agencies, modes of transportation, and trans-
portation goals and planning processes that are not 
easily addressed or funded within existing surface 
transportation program categories.
112
(4) Projects of national and regional signifi-
cance have national and regional benefits, including 
improving economic productivity by facilitating inter-
national trade, relieving congestion, and improving 
transportation safety by facilitating passenger and 
freight movement. 
(5) The benefits of such projects described in 
paragraph (4) accrue to local areas, States, and the 
Nation as a result of the effect such projects have 
on the national transportation system. 
(6) A program dedicated to constructing 
projects of national and regional significance is nec-
essary to improve the safe, secure, and efficient 
movement of people and goods throughout the 
United States and improve the health and welfare of 
the national economy. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish a program to provide grants to qualified 
entities for projects of national and regional significance. 
(c) DEFINITIONS.—
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eli-
gible project costs’’ means the costs of—
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
113
neering 
and 
design 
work, 
and 
other 
preconstruction activities; and 
(B) construction, reconstruction, rehabili-
tation, and acquisition of real property (includ-
ing land related to the project and improve-
ments to land), environmental mitigation, con-
struction contingencies, acquisition of equip-
ment, and operational improvements. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means any surface transportation project 
eligible for Federal assistance under title 23, United 
States Code, including freight railroad projects and 
activities eligible under such title. 
(3) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means a State as defined in section 101(a) 
of title 23, United States Code. 
(d) ELIGIBILITY.—To be eligible for assistance under 
this section, a project shall have eligible project costs that 
are reasonably anticipated to equal or exceed the lesser 
of—
(A) $500,000,000; or 
(B) 75 percent of the amount of Federal 
highway assistance funds apportioned for the 
most recently completed fiscal year to the State 
in which the project is located.
114
(e) APPLICATIONS.—Each qualified entity seeking to 
receive a grant under this section for an eligible project 
shall submit to the Secretary an application in such form 
and in accordance with such requirements as the Secretary 
shall establish. 
(f) COMPETITIVE GRANT SELECTION AND CRITERIA 
FOR GRANTS.—
(1) IN GENERAL.—The Secretary shall—
(A) establish criteria for selecting among 
projects that meet the eligibility criteria speci-
fied in subsection (d); 
(B) conduct a national solicitation for ap-
plications; and 
(C) award grants on a competitive basis. 
(2) CRITERIA
FOR
GRANTS.—The Secretary 
may approve a grant under this section for a project 
only if the Secretary determines that the project—
(A) is based on the results of preliminary 
engineering; 
(B) is justified based on the project’s abil-
ity—
(i) to generate national economic ben-
efits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product;
115
(ii) to reduce congestion, including 
impacts in the State, region, and Nation; 
(iii) to improve transportation safety, 
including reducing transportation acci-
dents, injuries, and fatalities; 
(iv) to otherwise enhance the national 
transportation system; and 
(v) to garner support for non-Federal 
financial commitments and provide evi-
dence of stable and dependable financing 
sources to construct, maintain, and operate 
the infrastructure facility; and 
(C) is supported by an acceptable degree of 
non-Federal financial commitments, including 
evidence of stable and dependable financing 
sources to construct, maintain, and operate the 
infrastructure facility. 
(3) SELECTION CONSIDERATIONS.—In selecting 
a project under this section, the Secretary shall con-
sider the extent to which the project—
(A) leverages Federal investment by en-
couraging non-Federal contributions to the 
project, including contributions from public-pri-
vate partnerships;
116
(B) uses new technologies, including intel-
ligent transportation systems, that enhance the 
efficiency of the project. 
(C) helps maintain or protect the environ-
ment. 
(4) PRELIMINARY
ENGINEERING.—In evalu-
ating a project under paragraph (2)(A), the Sec-
retary shall analyze and consider the results of pre-
liminary engineering for the project. 
(5) NON-FEDERAL FINANCIAL COMMITMENT.—
(A) EVALUATION OF PROJECT.—In evalu-
ating a project under paragraph (2)(C), the 
Secretary shall require that—
(i) the proposed project plan provides 
for the availability of contingency amounts 
that the Secretary determines to be reason-
able to cover unanticipated cost increases; 
and 
(ii) each proposed non-Federal source 
of capital and operating financing is stable, 
reliable, and available within the proposed 
project timetable. 
(B) CONSIDERATIONS.—In assessing the 
stability, reliability, and availability of proposed
117
sources of non-Federal financing under sub-
paragraph (A), the Secretary shall consider—
(i) existing financial commitments; 
(ii) the degree to which financing 
sources are dedicated to the purposes pro-
posed; 
(iii) any debt obligation that exists or 
is proposed by the recipient for the pro-
posed project; and 
(iv) the extent to which the project 
has a non-Federal financial commitment 
that exceeds the required non-Federal 
share of the cost of the project. 
(6) REGULATIONS.—Not later than 120 days 
after the date of enactment of this Act, the Sec-
retary shall issue regulations on the manner in 
which the Secretary will evaluate and rate the 
projects based on the results of preliminary engi-
neering, project justification, and the degree of non-
Federal financial commitment, as required under 
this subsection. 
(7) PROJECT
EVALUATION
AND
RATING.—A 
proposed project may advance from preliminary en-
gineering to final design and construction only if the 
Secretary finds that the project meets the require-
118
ments of this subsection and there is a reasonable 
likelihood that the project will continue to meet such 
requirements. In making such findings, the Sec-
retary shall evaluate and rate the project as ‘‘highly 
recommended’’, 
‘‘recommended’’, 
or 
‘‘not 
rec-
ommended’’ based on the results of preliminary engi-
neering, the project justification criteria, and the de-
gree of non-Federal financial commitment, as re-
quired under this subsection. In rating the projects, 
the Secretary shall provide, in addition to the overall 
project rating, individual ratings for each of the cri-
teria established under the regulations issued under 
paragraph (6). 
(g) LETTERS
OF INTENT
AND FULL FUNDING 
GRANT AGREEMENTS.—
(1) LETTER OF INTENT.—
(A) IN
GENERAL.—The Secretary may 
issue a letter of intent to an applicant announc-
ing an intention to obligate, for a project under 
this section, an amount from future available 
budget authority specified in law that is not 
more than the amount stipulated as the finan-
cial participation of the Secretary in the 
project.
119
(B) NOTIFICATION.—At least 60 days be-
fore issuing a letter under subparagraph (A) or 
entering into a full funding grant agreement, 
the Secretary shall notify in writing the Com-
mittee on Transportation and Infrastructure of 
the House of Representatives and the Com-
mittee on Environment and Public Works of the 
Senate of the proposed letter or agreement. The 
Secretary shall include with the notification a 
copy of the proposed letter or agreement as well 
as the evaluations and ratings for the project. 
(C) NOT AN OBLIGATION.—The issuance 
of a letter is deemed not to be an obligation 
under sections 1108(c) and (d), 1501, and 
1502(a) of title 31, United States Code, or an 
administrative commitment. 
(D) OBLIGATION
OR
COMMITMENT.—An 
obligation or administrative commitment may 
be made only when contract authority is allo-
cated to a project. 
(2) FULL FUNDING GRANT AGREEMENT.—
(A) IN
GENERAL.—A project financed 
under this subsection shall be carried out 
through a full funding grant agreement. The 
Secretary shall enter into a full funding grant
120
agreement based on the evaluations and ratings 
required under subsection (f)(7). 
(B) TERMS.—If the Secretary makes a full 
funding grant agreement with an applicant, the 
agreement shall—
(i) establish the terms of participation 
by the United States Government in a 
project under this section; 
(ii) establish the maximum amount of 
Government financial assistance for the 
project; 
(iii) cover the period of time for com-
pleting the project, including a period ex-
tending beyond the period of an authoriza-
tion; and 
(iv) make timely and efficient man-
agement of the project easier according to 
the laws of the United States. 
(C) AGREEMENT.—An agreement under 
this paragraph obligates an amount of available 
budget authority specified in law and may in-
clude a commitment, contingent on amounts to 
be specified in law in advance for commitments 
under this paragraph, to obligate an additional 
amount from future available budget authority
121
specified in law. The agreement shall state that 
the contingent commitment is not an obligation 
of the Government. Interest and other financing 
costs of efficiently carrying out a part of the 
project within a reasonable time are a cost of 
carrying out the project under a full funding 
grant agreement, except that eligible costs may 
not be more than the cost of the most favorable 
financing terms reasonably available for the 
project at the time of borrowing. The applicant 
shall certify, in a way satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financ-
ing terms. 
(3) AMOUNTS.—The total estimated amount of 
future obligations of the Government and contingent 
commitments to incur obligations covered by all out-
standing letters of intent and full funding grant 
agreements may be not more than the greater of the 
amount authorized to carry out this section or an 
amount equivalent to the last 2 fiscal years of fund-
ing authorized to carry out this section less an 
amount the Secretary reasonably estimates is nec-
essary for grants under this section not covered by 
a letter. The total amount covered by new letters
122
and contingent commitments included in full funding 
grant agreements may be not more than a limitation 
specified in law. 
(h) GRANT REQUIREMENTS.—
(1) IN GENERAL.—A grant for a project under 
this section shall be subject to all of the require-
ments of title 23, United States Code, and chapter 
52 of title 49, United States Code. 
(2) OTHER TERMS AND CONDITIONS.—The Sec-
retary shall require that all grants under this section 
be subject to all terms, conditions, and requirements 
that the Secretary decides are necessary or appro-
priate for purposes of this section, including require-
ments for the disposition of net increases in value of 
real property resulting from the project assisted 
under this section. 
(i) GOVERNMENT’S SHARE
OF PROJECT COST.—
Based on engineering studies, studies of economic feasi-
bility, and information on the expected use of equipment 
or facilities, the Secretary shall estimate the cost of a 
project receiving assistance under this section. A grant for 
the project is for 80 percent of the project cost, unless 
the grant recipient requests a lower grant percentage. A 
refund or reduction of the remainder may be made only
123
if a refund of a proportional amount of the grant of the 
Government is made at the same time. 
(j) FISCAL CAPACITY CONSIDERATIONS.—If the Sec-
retary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (i) the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
(k) REPORTS.—
(1) ANNUAL REPORT.—Not later than the first 
Monday in February of each year, the Secretary 
shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Environment and Public 
Works of the Senate a report that includes a pro-
posal on the allocation of amounts to be made avail-
able to finance grants under this section. 
(2) RECOMMENDATIONS
ON
FUNDING.—The 
annual report under this paragraph shall include 
evaluations and ratings, as required under sub-
section (f). The report shall also include rec-
ommendations of projects for funding based on the 
evaluations and ratings and on existing commit-
ments and anticipated funding levels for the next 3
124
fiscal years and for the next 10 fiscal years based 
on information currently available to the Secretary. 
(l) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion 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 expended and the Federal share of the cost 
of a project under this section shall be as provided in this 
section. 
SEC. 1305. DEDICATED TRUCK LANES. 
[Reserved.] 
SEC. 1306. TRUCK PARKING FACILITIES. 
[Reserved.] 
Subtitle D—Highway Safety 
SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 
(a) SAFETY IMPROVEMENT PROJECT DEFINED.—
Section 101(a)(30) of title 23, United States Code, is 
amended by inserting ‘‘installs fluorescent, yellow-green 
signs at pedestrian or bicycle crossings or school zones,’’ 
after ‘‘call boxes,’’. 
(b) OPERATION LIFESAVER.—Section 104(d)(1) of 
such title is amended—
(1) by striking ‘‘subsection (b)(3) of this sec-
tion’’ and inserting ‘‘section 130(f)’’; and
125
(2) by striking ‘‘$500,000’’ and inserting 
‘‘$600,000’’.
(c) RAILWAY-HIGHWAY CROSSING HAZARD ELIMI-
NATION
IN HIGH SPEED RAIL CORRIDORS.—Section 
104(d)(2) of such title is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘subsection (b)(3)’’ and in-
serting ‘‘section 130(f)’’; and 
(B) by striking ‘‘$5,250,000 of the funds 
made available for the surface transportation 
program for the fiscal year’’ and inserting 
‘‘from the funds made available for the surface 
transportation program $7,500,000 for fiscal 
year 2004, $10,000,000 for fiscal year 2005, 
$12,500,000 for fiscal year 2006, $15,000,000 
for fiscal year 2007, $17,500,000 for fiscal year 
2008, and $20,000,000 for fiscal year 2009’’; 
and 
(2) in subparagraph (E)—
(A) by striking ‘‘Not less than $250,000 of 
such set-aside’’ and inserting ‘‘Of such set-
aside, not less than $875,000 for fiscal year 
2004, 
$1,500,000 
for 
fiscal 
year 
2005, 
$2,125,000 for fiscal year 2006, $2,750,000 for 
fiscal year 2007, $3,375,000 for fiscal year
126
2008, and $4,000,000 for fiscal year 2009’’; 
and 
(B) by striking ‘‘per fiscal year’’. 
(d) RAILWAY-HIGHWAY CROSSINGS.—
(1) FUNDS
FOR
PROTECTIVE
DEVICES.—Sec-
tion 130(e) of such title is amended by striking ‘‘At 
least 1⁄2’’ and inserting ‘‘For each fiscal year, at 
least $150,000,000’’. 
(2) APPORTIONMENT.—Section 130(f) of such 
title is amended to read as follows: 
‘‘(f) APPORTIONMENT.—
‘‘(1) FORMULA.—Fifty percent of the funds au-
thorized to be appropriated to carry out this section 
shall be apportioned to the States in accordance with 
the formula set forth in section 104(b)(3)(A), and 
50 percent of such funds shall be apportioned to the 
States in the ratio that total public railway-highway 
crossings in each State bears to the total of such 
crossings in all States. 
‘‘(2) 
MINIMUM
APPORTIONMENT.—Notwith-
standing paragraph (1), each State shall receive a 
minimum of 1⁄2 of 1 percent of the funds appor-
tioned under paragraph (1). 
‘‘(3) FEDERAL
SHARE.—The Federal share 
payable on account of any project financed with
127
funds authorized to be appropriated to carry out this 
section shall be 90 percent of the cost thereof.’’. 
(3) BIENNIAL
REPORT
TO
CONGRESS.—The 
third sentence of section 130(g) of such title is 
amended by striking ‘‘not later than April 1 of each 
year,’’ and inserting ‘‘, not later than April 1, 2005, 
and every 2 years thereafter,’’. 
(4) EXPENDITURE OF FUNDS.—Section 130 of 
such title is further amended by adding at the end 
the following: 
‘‘(k) EXPENDITURE OF FUNDS.—Not more than 2 
percent of funds apportioned to a State to carry out this 
section may be used by the State for compilation and anal-
ysis of data in support of activities carried out under sub-
section (g).’’. 
(e) SURFACE TRANSPORTATION PROGRAM.—
(1) IN GENERAL.—Section 133(d) of such title 
is amended—
(A) by striking paragraph (1); and 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (5) as paragraphs (1) through (4), re-
spectively; and 
(C) in paragraph (2) (as so redesig-
nated)—
128
(i) in subparagraph (A) by striking 
‘‘80 percent’’ and inserting ‘‘90 percent’’; 
(ii) in subparagraph (B) by striking 
‘‘tobe’’ and inserting ‘‘to be’’; and 
(iii) in subparagraph (D) by adding a 
period at the end. 
(2) CONFORMING AMENDMENTS.—
(A) SECTION
133.—Section 133(e) is 
amended by striking ‘‘(d)(2)’’ and inserting 
‘‘(d)(1)’’ in each of paragraphs (3)(B)(i), 
(5)(A), and (5)(B). 
(B) SECTION 126.—Section 126(b) of such 
title is amended—
(i) by striking ‘‘to the last sentence of 
section 133(d)(1) or’’; 
(ii) by striking ‘‘section 133(d)(3)’’ 
and inserting ‘‘section 133(d)(2)’’; and 
(iii) by striking ‘‘or 133(d)(2)’’. 
(f) HAZARD ELIMINATION PROGRAM.—
(1) PURPOSES.—Section 152(a)(1) of such title 
is amended—
(A) by striking ‘‘and’’ after ‘‘bicyclists,’’; 
and 
(B) by inserting after ‘‘pedestrians,’’ the 
following: ‘‘and the disabled, identify roadway
129
safety improvement needs for such locations, 
sections, and elements,’’. 
(2) HAZARDS.—Section 152(a)(2)(A) of such 
title is amended by inserting ‘‘the disabled,’’ after 
‘‘pedestrians,’’. 
(3) APPROVAL OF PROJECTS.—Section 152(b) 
of such title is amended by inserting before the pe-
riod at the end the following: ‘‘that reduces the like-
lihood of crashes involving road departures, intersec-
tions, pedestrians, the disabled, bicyclists, older driv-
ers, or construction work zones’’. 
(4) EXPENDITURE OF FUNDS.—Section 152(c) 
of such title is amended—
(A) in paragraph (2) by striking ‘‘or’’ at 
the end; 
(B) in paragraph (3) by striking the period 
at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(4) police assistance for traffic and speed 
management in construction work zones; 
‘‘(5) installation of barriers between construc-
tion work zones and traffic lanes for the safety of 
motorists and workers; and 
‘‘(6) compilation and analysis of data under 
subsections (f) and (g) if the funds used for this
130
purpose by a State do not exceed 2 percent of the 
amount apportioned to such State to carry out this 
section.’’. 
(5) APPORTIONMENT.—Section 152(d) of such 
title is amended to read as follows: 
‘‘(d) APPORTIONMENT.—
‘‘(1) FORMULA.—Funds authorized to be ap-
propriated to carry out this section shall be appor-
tioned to the States in accordance with the formula 
set forth in section 104(b)(3)(A). 
‘‘(2) 
MINIMUM
APPORTIONMENT.—Notwith-
standing paragraph (1), each State shall receive a 
minimum of 1⁄2 of 1 percent of the funds appor-
tioned under paragraph (1). 
‘‘(3) FEDERAL
SHARE.—The Federal share 
payable on account of any project financed with 
funds authorized to be appropriated to carry out this 
section shall be 90 percent of the cost thereof.’’. 
(6) BIENNIAL REPORT TO CONGRESS.—
(A) IN
GENERAL.—Section 152 of such 
title is amended by adding at the end the fol-
lowing: 
‘‘(i) BIENNIAL REPORT TO CONGRESS.—Not later 
than 2 years after the date of enactment of this sub-
section, and every 2 years thereafter, the Secretary shall
131
transmit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Environment and Public Works of the Senate 
a report on the results of the program under this section. 
The report shall include, at a minimum, the following: 
‘‘(1) A summary of State projects completed 
under this section categorized by the types of haz-
ards and a statement of the cost of such projects. 
‘‘(2) An analysis of the effectiveness of such 
categories of projects in reducing the number and 
severity of crashes at high hazard locations. 
‘‘(3) An assessment of the adequacy of author-
ized funding for the program and State use of such 
funding to address the national need for such 
projects. 
‘‘(4) Recommendations for funding and pro-
gram improvements to reduce the number of high 
hazard locations. 
‘‘(5) An analysis and evaluation of each State 
program, an identification of any State found not to 
be in compliance with the schedule of improvements 
required by subsection (a), and recommendations for 
future implementation of the hazard elimination pro-
gram.’’.
132
(B) CONFORMING
AMENDMENT.—Section 
152(g) of such title is amended by striking the 
third sentence through the last sentence. 
SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW 
OF VEHICULAR TRAFFIC. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue regulations to de-
crease the likelihood of worker injury and maintain the 
free flow of vehicular traffic by requiring workers whose 
duties place them on or in close proximity to a Federal-
aid highway (as defined in section 101 of title 23, United 
States Code) to wear high visibility garments. Such regu-
lations may also require such other worker-safety meas-
ures for workers with those duties as the Secretary deter-
mines appropriate. 
SEC. 1403. HIGH RISK RURAL ROAD SAFETY IMPROVEMENT 
PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
and implement a high risk rural road safety improvement 
program in accordance with this section. 
(b) ELIGIBLE PROJECTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), a State may obligate funds apportioned 
to it under this section only for construction and 
operational improvement projects on high risk rural
133
roads and only if the primary purpose of the project 
is to improve highway safety on a high risk rural 
road. 
(2) SPECIAL RULE.—A State may use funds 
apportioned to it under this section for any project 
approved by the Secretary under section 152 of title 
23, United States Code, if the State certifies to the 
Secretary that it has no projects described in para-
graph (1). 
(c) STATE ALLOCATION SYSTEM.—Each State shall 
establish a system for allocating funds apportioned to it 
under this section among projects eligible for assistance 
under this section that have the highest benefits to high-
way safety. Such system may include a safety manage-
ment system established by the State under section 303 
of title 23, United States Code, or a survey established 
pursuant to section 152(a) of such title. 
(d) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among 
States sums authorized to be appropriated to carry out 
this section for such fiscal year as follows: 
(1) 1⁄3 in the ratio that—
(A) each State’s public road lane mileage 
for rural minor collectors and rural local roads; 
bears to
134
(B) the total public road lane mileage for 
rural minor collectors and rural local roads of 
all States. 
(2) 1⁄3 in the ratio that—
(A) the population of areas other than ur-
banized areas in each State, as shown by the 
most recent Government decennial census of 
population; bears to 
(B) the population of all areas other than 
urbanized areas in the United States, as shown 
by that census. 
(3) 1⁄3 in the ratio that—
(A) the total vehicle miles traveled on pub-
lic roads in each State; bears to 
(B) the total number of vehicle miles trav-
eled on public roads in all States. 
(e) APPLICABILITY
OF TITLE 23.—Funds made 
available to carry out this section shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable and shall 
remain available until expended and the Federal share of 
the cost of a project under this section shall be 80 percent. 
Notwithstanding any other provision of law, projects as-
135
sisted under this section shall be treated as projects on 
a Federal-aid system under such chapter. 
(f) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) HIGH RISK RURAL ROAD.—The term ‘‘high 
risk rural road’’ means any roadway functionally 
classified as a rural major or minor collector or a 
rural local road—
(A) on which the accident rate for fatali-
ties and incapacitating injuries exceeds the 
statewide average for these functional classes of 
roadway; or 
(B) which will likely have increases in traf-
fic volume that are likely to create an accident 
rate for fatalities and incapacitating injuries 
that exceeds the statewide average for these 
functional classes of roadway. 
(2) STATE AND URBANIZED AREA.—The terms 
‘‘State’’ and ‘‘urbanized area’’ have the meaning 
such terms have under section 101(a) of title 23, 
United States Code.
136
SEC. 1404. TRANSFERS OF APPORTIONMENTS TO SAFETY 
PROGRAMS. 
(a) USE OF SAFETY BELTS AND MOTORCYCLE HEL-
METS.—Section 153(h) of title 23, United States Code, 
is amended—
(1) in paragraph (2)—
(A) in the paragraph heading by striking 
‘‘THEREAFTER.—’’ 
and 
inserting 
‘‘FISCAL 
YEARS 1995–2003.—’’; and 
(B) by inserting ‘‘and ending before Octo-
ber 1, 2003,’’ after ‘‘September 30, 1994,’’; 
(2) by redesignating paragraphs (3) through 
(5) as paragraphs (4) through (6), respectively; 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) FISCAL YEAR 2004 AND THEREAFTER.—On 
October 1, 2003, and each October 1 thereafter, if 
a State does not have in effect a law described in 
subsection (a)(2), the Secretary shall transfer from 
the funds apportioned to the State on that date 
under each of subsections (b)(1), (b)(2), and (b)(3) 
of section 104 to the apportionment of the State 
under section 402 an amount equal to 3 percent of 
the funds apportioned to the State under such sub-
sections for fiscal year 2003.’’; and 
(4) in paragraph (5) (as so redesignated)—
137
(A) by striking ‘‘which is determined by 
multiplying’’ and inserting ‘‘which, for fiscal 
year 2004 and each fiscal year thereafter, is de-
termined by multiplying’’; and 
(B) in subparagraph (B) by striking ‘‘such 
fiscal year’’ each place it appears and inserting 
‘‘fiscal year 2003’’. 
(b) OPEN
CONTAINER
REQUIREMENTS.—Section 
154(c) of title 23, United States Code, is amended—
(1) in paragraph (2)—
(A) in the paragraph heading by striking 
‘‘AND FISCAL YEARS THEREAFTER’’; and 
(B) by striking ‘‘and each October 1 there-
after,’’; 
(2) by redesignating paragraphs (3) through 
(7) as paragraphs (4) through (8), respectively; 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) FISCAL YEAR 2004 AND THEREAFTER.—On 
October 1, 2003, and each October 1 thereafter, if 
a State has not enacted or is not enforcing an open 
container law described in subsection (b), the Sec-
retary shall transfer from the funds apportioned to 
the State on that date under each of paragraphs (1), 
(3), and (4) of section 104(b) an amount equal to
138
3 percent of the funds apportioned to the State 
under such paragraphs for fiscal year 2003 to be 
used or directed as described in subparagraph (A) or 
(B) of paragraph (1).’’; 
(4) in paragraph (5) (as so redesignated) by 
striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(4)’’; 
(5) in paragraphs (4), (5), and (6) (as so redes-
ignated) by striking ‘‘paragraph (1) or (2)’’ and in-
serting ‘‘paragraph (1), (2), or (3)’’; and 
(6) in paragraph (7)(B) (as so redesignated)—
(A) by striking ‘‘The amount’’ and insert-
ing ‘‘For fiscal year 2004 and each fiscal year 
thereafter, the amount’’; and 
(B) in subclauses (I) and (II) of clause (ii) 
by striking ‘‘the fiscal year’’ and inserting ‘‘fis-
cal year 2003’’. 
(c) MINIMUM PENALTIES FOR CERTAIN REPEAT OF-
FENDERS.—Section 164(b) of title 23, United States 
Code, is amended—
(1) in paragraph (2)—
(A) in the paragraph heading by striking 
‘‘AND FISCAL YEARS THEREAFTER’’; and 
(B) by striking ‘‘and each October 1 there-
after,’’;
139
(2) by redesignating paragraphs (3) through 
(7) as paragraphs (4) through (8), respectively; 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) FISCAL YEAR 2004 AND THEREAFTER.—On 
October 1, 2003, and each October 1 thereafter, if 
a State has not enacted or is not enforcing a repeat 
intoxicated driver law, the Secretary shall transfer 
from the funds apportioned to the State on that date 
under each of paragraphs (1), (3), and (4) of section 
104(b) an amount equal to 3 percent of the funds 
apportioned to the State under such paragraphs for 
fiscal year 2003 to be used or directed as described 
in subparagraph (A) or (B) of paragraph (1).’’; 
(4) in paragraph (5) (as so redesignated) by 
striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(4)’’; 
(5) in paragraphs (4), (5), and (6) (as so redes-
ignated) by striking ‘‘paragraph (1) or (2)’’ and in-
serting ‘‘paragraph (1), (2), or (3)’’; and 
(6) in paragraph (7)(B) (as so redesignated)—
(A) by striking ‘‘The amount’’ and insert-
ing ‘‘For fiscal year 2004 and each fiscal year 
thereafter, the amount’’; and
140
(B) in subclauses (I) and (II) of clause (ii) 
by striking ‘‘the fiscal year’’ and inserting ‘‘fis-
cal year 2003’’. 
SEC. 1405. SAFETY INCENTIVES TO PREVENT OPERATION 
OF MOTOR VEHICLES BY INTOXICATED PER-
SONS. 
(a) CODIFICATION
OF PENALTY.—Section 163 of 
title 23, United States Code, is amended—
(1) by redesignating subsection (e) as sub-
section (f); and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) PENALTY.—
‘‘(1) IN GENERAL.—On October 1, 2003, and 
October 1 of each fiscal year thereafter, if a State 
has not enacted or is not enforcing a law described 
in subsection (a), the Secretary shall withhold from 
amounts apportioned to the State on that date 
under each of paragraphs (1), (3), and (4) of section 
104(b) an amount equal to the amount specified in 
paragraph (2). 
‘‘(2) AMOUNT TO BE WITHHELD.—If a State is 
subject to a penalty under paragraph (1), the Sec-
retary shall withhold for a fiscal year from the ap-
portionments of the State described in paragraph
141
(1) an amount equal to a percentage of the funds 
apportioned to the State under paragraphs (1), (3), 
and (4) of section 104(b) for fiscal year 2003. The 
percentage shall be as follows: 
‘‘(A) For fiscal year 2004, 2 percent. 
‘‘(B) For fiscal year 2005, 4 percent. 
‘‘(C) For fiscal year 2006, 6 percent. 
‘‘(D) For fiscal year 2007, and each fiscal 
year thereafter, 8 percent. 
‘‘(3) FAILURE TO COMPLY.—If, within 4 years 
from the date that an apportionment for a State is 
withheld in accordance with this subsection, the Sec-
retary determines that the State has enacted and is 
enforcing a law described in subsection (a), the ap-
portionment of the State shall be increased by an 
amount equal to the amount withheld. If, at the end 
of such 4-year period, any State has not enacted or 
is not enforcing a law described in subsection (a) 
any amounts so withheld from such State shall 
lapse.’’. 
(b) REPEAL.—Section 351 of the Department of 
Transportation and Related Agencies Appropriations Act, 
2001 (114 Stat. 1356A–34) is repealed.
142
Subtitle E—Construction and 
Contract Efficiencies 
SEC. 1501. DESIGN-BUILD. 
[Reserved.] 
SEC. 1502. WARRANTY HIGHWAYS. 
[Reserved.] 
SEC. 1503. PUBLIC-PRIVATE VENTURE. 
[Reserved.]
SEC. 1504. HIGHWAYS FOR LIFE PILOT PROGRAM. 
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish 
and implement a pilot program to be known as the 
‘‘Highways for LIFE pilot program’’. 
(2) PURPOSE.—The purpose of the pilot pro-
gram shall be to advance longer-lasting highways 
using innovative technologies and practices to ac-
complish the fast construction of efficient and safe 
highways and bridges. 
(3) OBJECTIVES.—Under the pilot program, 
the Secretary shall provide leadership and incentives 
to demonstrate and promote state-of-the-art tech-
nologies, elevated performance standards, and new 
business practices in the highway construction proc-
ess that result in improved safety, faster construc-
143
tion, reduced congestion from construction, and im-
proved quality and user satisfaction. 
(b) PROJECTS.—
(1) APPLICATIONS.—To be eligible to partici-
pate in the pilot program, a State shall submit to 
the Secretary an application that is in such form 
and contains such information as the Secretary re-
quires. Each application shall contain a description 
of proposed projects to be carried by the State under 
the pilot program. 
(2) ELIGIBILITY.—A proposed project shall be 
eligible for assistance under the pilot program if the 
project—
(A) constructs, reconstructs, or rehabili-
tates a route or connection on a Federal-aid 
highway eligible for assistance under chapter 1 
of title 23, United States Code; 
(B) uses innovative technologies, manufac-
turing processes, financing, or contracting 
methods that improve safety, reduce congestion 
due to construction, and improve quality; and 
(C) meets additional criteria as determined 
by the Secretary. 
(3) PROJECT
PROPOSAL.—A project proposal 
submitted under paragraph (1) shall contain—
144
(A) an identification and description of the 
projects to be delivered; 
(B) a description of how the projects will 
result in improved safety, faster construction, 
reduced congestion due to construction, user 
satisfaction, and improved quality; 
(C) a description of the innovative tech-
nologies, manufacturing processes, financing, 
and contracting methods that will be used for 
the proposed projects; and 
(D) such other information as the Sec-
retary may require. 
(4) 
SELECTION
CRITERIA.—In 
selecting 
projects for approval under this section, the Sec-
retary shall ensure that the projects provide an eval-
uation of a broad range of technologies in a wide va-
riety of project types and shall give priority to the 
projects that—
(A) address achieving the Highways for 
LIFE performance standards for quality, safe-
ty, and speed of construction; 
(B) deliver and deploy innovative tech-
nologies, manufacturing processes, financing, 
contracting practices, and performance meas-
ures that will demonstrate substantial improve-
145
ments in safety, congestion, quality, and cost-
effectiveness; 
(C) include innovation that will lead to 
change in the administration of the State’s 
transportation program to more quickly con-
struct long-lasting, high-quality, cost-effective 
projects that improve safety and reduce conges-
tion; 
(D) are or will be ready for construction 
within 12 months of approval of the project 
proposal; and 
(E) meet such other criteria as the Sec-
retary determines appropriate. 
(5) FINANCIAL ASSISTANCE.—
(A) FUNDS
FOR
HIGHWAYS
FOR
LIFE 
PROJECTS.—Out of amounts made available to 
carry out this section for a fiscal year, the Sec-
retary may allocate to a State up to 20 percent, 
but not more than $15,000,000, of the total 
cost of a project approved under this section. 
Notwithstanding any other provision of law, 
funds allocated to a State under this subpara-
graph may be applied to the non-Federal share 
of the cost of construction of a project under 
title 23, United States Code.
146
(B) USE
OF
APPORTIONED
FUNDS.—A 
State may obligate not more than 10 percent of 
the amount apportioned to the State under 1 or 
more of paragraphs (1), (2), (3), and (4) of sec-
tion 104(b) of title 23, United States Code, for 
a fiscal year for projects approved under this 
section. 
(C) INCREASED
FEDERAL
SHARE.—Not-
withstanding sections 120 and 129 of title 23, 
United States Code, the Federal share payable 
on account of any project constructed with Fed-
eral funds allocated under this section, or ap-
portioned under section 104(b) of such title, to 
a State under such title and approved under 
this section may amount to 100 percent of the 
cost of construction of such project. 
(D) LIMITATION
ON
STATUTORY
CON-
STRUCTION.—Except as provided in subpara-
graph (C), nothing in this subsection shall be 
construed as altering or otherwise 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 and the location 
of the project), to amounts apportioned to a
147
State for a program under section 104(b) that 
are obligated by the State for projects approved 
under this subsection. 
(6) PROJECT
SELECTIONS.—In the period of 
fiscal years 2004 through 2009, the Secretary shall 
approve at least one project in each State for par-
ticipation in the pilot program and for financial as-
sistance under paragraph (5) if the State submits an 
application and the project meets the eligibility re-
quirements and selection criteria under this sub-
section. 
(c) TECHNOLOGY PARTNERSHIPS.—
(1) IN
GENERAL.—The Secretary may make 
grants or enter into cooperative agreements or other 
transactions to foster the development, improvement, 
and creation of innovative technologies and facilities 
to improve safety, enhance the speed of highway 
construction, and improve the quality and durability 
of highways. 
(2) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out under this sub-
section shall not exceed 80 percent. 
(d) TECHNOLOGY TRANSFER
AND INFORMATION 
DISSEMINATION.—
148
(1) IN GENERAL.—The Secretary shall conduct 
a Highways for LIFE technology transfer program. 
(2) AVAILABILITY OF INFORMATION.—The Sec-
retary shall ensure that the information and tech-
nology used, developed, or deployed under this sub-
section is made available to the transportation com-
munity and the public. 
(e) STAKEHOLDER INPUT AND INVOLVEMENT.—The 
Secretary shall establish a process for stakeholder input 
and involvement in the development, implementation, and 
evaluation of the Highways for LIFE pilot program. The 
process may include participation by representatives of 
State departments of transportation and other interested 
persons. 
(f) PROJECT MONITORING AND EVALUATION.—The 
Secretary shall monitor and evaluate the effectiveness of 
any activity carried out under this section. 
(g) CONTRACT AUTHORITY.—Funds authorized to be 
appropriated to carry out this section shall be available 
for obligation in the same manner as if the funds were 
apportioned under chapter 1 of title 23, United States 
Code. 
(h) STATE DEFINED.—In this section, the term 
‘‘State’’ has the meaning such term has under section 
101(a) of title 23, United States Code.
149
SEC. 1505. UNIT BID PRICING. 
[Reserved.]
Subtitle F—Finance 
SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE 
AND INNOVATION ACT. 
(a) DEFINITIONS.—Section 181 of title 23, United 
States Code, is amended—
(1) in paragraph (3)—
(A) by striking ‘‘category’’; and 
(B) by striking ‘‘offered into the capital 
markets’’; 
(2) by striking paragraph (7); 
(3) by redesignating paragraphs (8) through 
(15) as paragraphs (7) through (14), respectively; 
and 
(4) in paragraph (10) (as so redesignated) by 
striking ‘‘bond’’ and inserting ‘‘credit’’. 
(b) 
DETERMINATION
OF
ELIGIBILITY.—Section 
182(a) of such title is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) INCLUSION
IN
TRANSPORTATION
PLANS 
AND PROGRAMS.—The project shall satisfy the appli-
cable planning and programming requirements of 
sections 134 and 135 at such time as an agreement
150
to make available a Federal credit instrument is en-
tered into under this subchapter. 
‘‘(2) APPLICATION.—A State, a local govern-
ment, public authority, public-private partnership, or 
any other legal entity undertaking the project and 
authorized by the Secretary, shall submit a project 
application to the Secretary.’’; 
(2) 
in 
paragraph 
(3)(A)(i) 
by 
striking 
‘‘$100,000,000’’ and inserting ‘‘$50,000,000’’; 
(3) 
in 
paragraph 
(3)(B) 
by 
striking 
‘‘$30,000,000’’ and inseting ‘‘$15,000,000’’; and 
(4) in paragraph (4)—
(A) by striking ‘‘Project financing’’ and in-
serting ‘‘The Federal credit instrument’’; and 
(B) by inserting before the period at the 
end ‘‘that also secure the project obligations’’. 
(c) PROJECT SELECTION.—Section 182(b) of such 
title is amended—
(1) in paragraph (1) by striking ‘‘criteria’’ the 
second place it appears and inserting ‘‘require-
ments’’; and 
(2) in paragraph (2)(B) by inserting ‘‘, which 
may be the Federal credit instrument,’’ after ‘‘obli-
gations’’. 
(d) SECURED LOANS.—
151
(1) AGREEMENTS.—Section 183(a)(1) of such 
title is amended—
(A) in each of subparagraphs (A) and (B) 
by inserting ‘‘of any project selected under sec-
tion 602’’ after ‘‘costs’’; and 
(B) by striking the semicolon at the end of 
subparagraph (B) and all that follows through 
‘‘under section 602’’. 
(2) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—Section 183(a)(4) of such title is amend-
ed—
(A) by striking ‘‘The funding’’ and insert-
ing ‘‘The execution’’; and 
(B) by striking the first comma and all 
that follows through ‘‘1 rating agency’’. 
(3) TERMS AND LIMITATIONS.—Section 183(b) 
of such title is amended—
(A) in paragraph (2) by inserting ‘‘the 
lesser of’’ after ‘‘exceed’’; 
(B) in paragraph (2) by inserting ‘‘or the 
amount of the senior project obligations’’ after 
‘‘costs’’; 
(C) in paragraph (3)(A)(i) by inserting 
‘‘that also secure the senior project obligations’’ 
after ‘‘sources’’; and
152
(D) in paragraph (4) by striking ‘‘market-
able’’. 
(4) REPAYMENT.—Section 183(c) is amended—
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4) and 
(5) as paragraphs (3) and (4), respectively. 
(e) LINES OF CREDIT.—
(1) TERMS AND LIMITATIONS.—Section 184(b) 
of such title is amended—
(A) in paragraph (3)—
(i) by striking the first comma; and 
(ii) by striking ‘‘any debt service re-
serve fund, and any other available re-
serve’’ and inserting ‘‘but not including 
reasonably required financing reserves’’; 
(B) in paragraph (4)—
(i) by striking ‘‘marketable’’; 
(ii) by striking ‘‘on which’’ and insert-
ing ‘‘of execution of’’; 
(iii) by striking ‘‘is obligated’’ and in-
serting ‘‘agreement’’; and 
(C) in paragraph (5)(A)(i) by inserting 
‘‘that also secure the senior project obligations’’ 
after ‘‘sources’’; and
153
(2) REPAYMENT.—Section 184(c) of such title 
is amended—
(A) in paragraph (2)—
(i) by striking ‘‘scheduled’’; 
(ii) by inserting ‘‘be scheduled to’’ 
after ‘‘shall’’; 
(iii) by striking ‘‘be fully repaid, with 
interest,’’ and inserting ‘‘conclude, with 
full repayment of principal and interest,’’; 
and 
(B) by striking paragraph (3). 
(f) PROGRAM ADMINISTRATION.—Section 185 of 
such title is amended to read as follows: 
‘‘§ 185. Program administration 
‘‘(a) REQUIREMENT.—The Secretary shall establish 
a uniform system to service the Federal credit instrument 
made available under this chapter. 
‘‘(b) FEES.—The Secretary may establish fees at a 
level to cover all or a portion of the costs to the Federal 
Government of servicing the Federal credit instrument. 
‘‘(c) SERVICER.—The Secretary may identify a finan-
cial entity to assist the Secretary in servicing a Federal 
credit instrument. The servicer—
‘‘(1) shall act as the agent for the Secretary; 
and
154
‘‘(2) shall receive a servicing fee, subject to ap-
proval by the Secretary. 
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec-
retary may retain the services of one or more expert firms, 
including counsel, in the field of municipal and project fi-
nance to assist in the underwriting and servicing of Fed-
eral credit instruments.’’. 
(g) FUNDING.—Section 188 of such title is amended 
to read as follows: 
‘‘§ 188. Funding 
‘‘(a) FUNDING.—
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) $150,000,000 for 
each of fiscal years 2004 through 2009 to carry out 
this chapter. 
‘‘(2) ADMINISTRATIVE
COSTS.—From funds 
made available under paragraph (1), the Secretary 
may use, for the administration of this subchapter, 
not more than $3,000,000 for each of fiscal years 
2004 through 2009. 
‘‘(3) AVAILABILITY.—Amounts made available 
under paragraph (1) shall remain available until ex-
pended. 
‘‘(b) CONTRACT AUTHORITY.—
155
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, approval by the Secretary of a Fed-
eral credit instrument that uses funds made avail-
able under this chapter shall be deemed to be ac-
ceptance by the United States of a contractual obli-
gation to fund the Federal credit instrument. 
‘‘(2) 
AVAILABILITY.—Amounts 
authorized 
under this section for a fiscal year shall be available 
for obligation on October 1 of the fiscal year. 
‘‘(c) LIMITATIONS ON CREDIT AMOUNTS.—For each 
of fiscal years 2004 through 2009, principal amounts of 
Federal credit instruments made available under this 
chapter shall be limited to $2,600,000,000.’’. 
SEC. 1602. STATE INFRASTRUCTURE BANKS. 
(a) IN GENERAL.—Section 189 of title 23, United 
States Code, is amended to read as follows: 
‘‘§ 189. State infrastructure bank program 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) CAPITAL
PROJECT.—The term ‘capital 
project’ has the meaning such term has under sec-
tion 5302 of title 49, United States Code. 
‘‘(2) OTHER FORMS OF CREDIT ASSISTANCE.—
The term ‘other forms of credit assistance’ includes 
any use of funds in an infrastructure bank—
156
‘‘(A) to provide credit enhancements; 
‘‘(B) to serve as a capital reserve for bond 
or debt instrument financing; 
‘‘(C) to subsidize interest rates; 
‘‘(D) to insure or guarantee letters of cred-
it and credit instruments against credit risk of 
loss; 
‘‘(E) to finance purchase and lease agree-
ments with respect to transit projects; 
‘‘(F) to provide bond or debt financing in-
strument security; and 
‘‘(G) to provide other forms of debt financ-
ing and methods of leveraging funds that are 
approved by the Secretary and that relate to 
the project with respect to which such assist-
ance is being provided. 
‘‘(3) STATE.—The term ‘State’ has the mean-
ing such term has under section 401 of this title. 
‘‘(4) CAPITALIZATION.—The term ‘‘capitaliza-
tion’’ means the process used for depositing funds as 
initial capital into a State infrastructure bank to es-
tablish the infrastructure bank. 
‘‘(5) COOPERATIVE
AGREEMENT.—The term 
‘cooperative agreement’ means written consent be-
tween a State and the Secretary which sets forth the
157
manner in which the infrastructure bank established 
by the State in accordance with this section will be 
administered. 
‘‘(6) LOAN.—The term ‘loan’ means any form 
of direct financial assistance from a State infra-
structure bank that is required to be repaid over a 
period of time and that is provided to a project 
sponsor for all or part of the costs of the project. 
‘‘(7) 
GUARANTEE.—The 
term 
‘guarantee’ 
means a contract entered into by a State infrastruc-
ture bank in which the bank agrees to take responsi-
bility for all or a portion of a project sponsor’s fi-
nancial obligations for a project under specified con-
ditions. 
‘‘(8) INITIAL
ASSISTANCE.—The term ‘initial 
assistance’ means the first round of funds that are 
loaned or used for credit enhancement by a State in-
frastructure bank for projects eligible for assistance 
under this section. 
‘‘(9) LEVERAGE.—The term ‘leverage’ means a 
financial structure used to increase funds in a State 
infrastructure bank through the issuance of debt in-
struments. 
‘‘(10) LEVERAGED.— The term ‘leveraged’, as 
used with respect to a State infrastructure bank,
159
through 2009 under each of sections 104(b)(1), 
104(b)(3), 104(b)(4), and 144; and 
‘‘(B) 10 percent of the funds allocated to 
the State for each of such fiscal years under 
section 105. 
‘‘(2) TRANSIT ACCOUNT.—Subject to subsection 
(j), the Secretary may permit a State entering into 
a cooperative agreement under this section to estab-
lish a State infrastructure bank, and any other re-
cipient of Federal assistance under section 5307, 
5309, or 5311 of title 49, to deposit into the transit 
account of the bank not to exceed 10 percent of the 
funds made available to the State or other recipient 
in each of fiscal years 2004 through 2009 for capital 
projects under each of such sections. 
‘‘(3) RAIL ACCOUNT.—Subject to subsection (j), 
the Secretary may permit a State entering into a co-
operative agreement under this section to establish 
a State infrastructure bank, and any other recipient 
of Federal assistance under subtitle V of title 49, to 
deposit into the rail account of the bank funds made 
available to the State or other recipient in each of 
fiscal years 2004 through 2009 for capital projects 
under such subtitle. 
‘‘(4) CAPITAL GRANTS.—
160
‘‘(A) HIGHWAY ACCOUNT.—Federal funds 
deposited into a highway account of a State in-
frastructure bank under paragraph (1) shall 
constitute for purposes of this section a capital-
ization grant for the highway account of the 
bank. 
‘‘(B) TRANSIT
ACCOUNT.—Federal funds 
deposited into a transit account of a State in-
frastructure bank under paragraph (2) shall 
constitute for purposes of this section a capital-
ization grant for the transit account of the 
bank. 
‘‘(C) RAIL ACCOUNT.—Federal funds de-
posited into a rail account of a State infrastruc-
ture bank under paragraph 3 shall constitute 
for purposes of this section a capitalization 
grant for the rail account of the bank. 
‘‘(5) SPECIAL RULE FOR URBANIZED AREAS OF 
OVER 200,000.—Funds in a State infrastructure 
bank that are attributed to urbanized areas of a 
State with urbanized populations of over 200,000 
under section 133(d)(3) may be used to provide as-
sistance with respect to a project only if the metro-
politan planning organization designated for such
161
area concurs, in writing, with the provision of such 
assistance. 
‘‘(6) DISCONTINUANCE
OF
FUNDING.—If the 
Secretary determines that a State is not imple-
menting the State’s infrastructure bank in accord-
ance with a cooperative agreement entered into 
under subsection (b), the Secretary may prohibit the 
State from contributing additional Federal funds to 
the bank. 
‘‘(e) FORMS OF ASSISTANCE FROM INFRASTRUCTURE 
BANKS.—An infrastructure bank established under this 
section may make loans or provide other forms of credit 
assistance to a public or private entity in an amount equal 
to all or a part of the cost of carrying out a project eligible 
for assistance under this section. The amount of any loan 
or other form of credit assistance provided for the project 
may be subordinated to any other debt financing for the 
project. Initial assistance provided with respect to a 
project from Federal funds deposited into an infrastruc-
ture bank under this section may not be made in the form 
of a grant. 
‘‘(f) ELIGIBLE PROJECTS.—Subject to subsection (e), 
funds in an infrastructure bank established under this sec-
tion may be used only to provide assistance for projects 
eligible for assistance under this title and capital projects
162
defined in section 5302 of title 49, and any other projects 
related to surface transportation that the Secretary deter-
mines to be appropriate. 
‘‘(g) INFRASTRUCTURE BANK REQUIREMENTS.—In 
order to establish an infrastructure bank under this sec-
tion, the State establishing the bank shall—
‘‘(1) deposit in cash, at a minimum, into each 
account of the bank from non-Federal sources an 
amount equal to 25 percent of the amount of each 
capitalization grant made to the State and deposited 
into such account; except that, if the deposit is into 
the highway account of the bank and the State has 
a non-Federal share under section 120(b) that is 
less than 25 percent, the percentage to be deposited 
from non-Federal sources shall be the lower percent-
age of such grant; 
‘‘(2) ensure that the bank maintains on a con-
tinuing basis an investment grade rating on its debt, 
or has a sufficient level of bond or debt financing in-
strument insurance, to maintain the viability of the 
bank; 
‘‘(3) ensure that investment income derived 
from funds deposited to an account of the bank 
are—
‘‘(A) credited to the account;
163
‘‘(B) available for use in providing loans 
and other forms of credit assistance to projects 
eligible for assistance from the account; and 
‘‘(C) invested in United States Treasury 
securities, bank deposits, or such other financ-
ing instruments as the Secretary may approve 
to earn interest to enhance the leveraging of 
projects assisted by the bank; 
‘‘(4) ensure that any loan from the bank will 
bear interest at or below market interest rates, as 
determined by the State, to make the project that is 
the subject of the loan feasible; 
‘‘(5) ensure that repayment of any loan from 
the bank will commence not later than 5 years after 
the project has been completed or, in the case of a 
highway project, the facility has opened to traffic, 
whichever is later; 
‘‘(6) ensure that the term for repaying any loan 
will not exceed 30 years after the date of the first 
payment on the loan; and 
‘‘(7) require the bank to make an annual report 
to the Secretary on its status no later than Sep-
tember 30 of each year and such other reports as 
the Secretary may require under guidelines issued to 
carry out this section.
164
‘‘(h) APPLICABILITY OF FEDERAL LAW.—
‘‘(1) IN GENERAL.—The requirements of this 
title and title 49 that would otherwise apply to funds 
made available under this title or such title and 
projects assisted with those funds shall apply to—
‘‘(A) funds made available under this title 
or such title and contributed to an infrastruc-
ture bank established under this section, includ-
ing the non-Federal contribution required under 
subsection (g); and 
‘‘(B) projects assisted by the bank through 
the use of the funds; 
except to the extent that the Secretary determines 
that any requirement of such title (other than sec-
tions 113 and 114 of this title and section 5333 of 
title 49), is not consistent with the objectives of this 
section. 
‘‘(2) REPAYMENTS.—The requirements of this 
title and title 49 shall apply to repayments from 
non-Federal sources to an infrastructure bank from 
projects assisted by the bank. Such a repayment 
shall be considered to be Federal funds. 
‘‘(i) UNITED STATES NOT OBLIGATED.—The deposit 
of Federal funds into an infrastructure bank established 
under this section shall not be construed as a commitment,
165
guarantee, or obligation on the part of the United States 
to any third party, nor shall any third party have any right 
against the United States for payment solely by virtue of 
the contribution. Any security or debt-financing instru-
ment issued by the infrastructure bank shall expressly 
state that the security or instrument does not constitute 
a commitment, guarantee, or obligation of the United 
States. 
‘‘(j) MANAGEMENT OF FEDERAL FUNDS.—Sections 
3335 and 6503 of title 31, shall not apply to funds depos-
ited into an infrastructure bank under this section. 
‘‘(k) PROGRAM ADMINISTRATION.—For each of fiscal 
years 2004 through 2009, a State may expend not to ex-
ceed 2 percent of the Federal funds contributed to an in-
frastructure bank established by the State under this sec-
tion to pay the reasonable costs of administering the 
bank.’’.
(b) PREPARATORY AMENDMENTS.—
(1) SECTION 181.—Section 181 of such title is 
further amended—
(A) by striking the section designator and 
heading and inserting the following: 
‘‘§ 181. Generally applicable provisions’’; 
(B) by striking ‘‘In this subchapter’’ and 
inserting ‘‘(a) DEFINITIONS.—In this chapter’’;
166
(C) in paragraph (5) by striking ‘‘184’’ 
and inserting ‘‘604’’; and 
(D) in paragraph (11) (as redesignated by 
section 1601(a) of this Act) by striking ‘‘183’’ 
and inserting ‘‘603’’; and 
(E) by adding at the end the following: 
‘‘(b) TREATMENT OF CHAPTER.—For purposes of 
this title, this chapter shall be treated as being part of 
chapter 1.’’. 
(2) SECTION 182.—Section 182(b)(2)(A)(viii) 
of such title is further amended by inserting ‘‘and 
chapter 1’’ after ‘‘this chapter’’. 
(3) SECTION 183.—Section 183(a) of such title 
is further amended—
(A) in paragraph (1) by striking ‘‘182’’ 
and inserting ‘‘602’’; and 
(B) 
in 
paragraph 
(3) 
by 
striking 
‘‘182(b)(2)(B)’’ and inserting ‘‘602(b)(2)(B)’’. 
(4) SECTION 184.—Section 184 of such title is 
further amended—
(A) in subsection (a)(1) by striking ‘‘182’’ 
and inserting ‘‘602’’; 
(B) in subsection (a)(3) by striking 
‘‘182(b)(2)(B)’’ and inserting ‘‘602(b)(2)(B); 
and
167
(C) in subsection (b)(10) by striking 
‘‘183’’ and inserting ‘‘603’’. 
(5) 
REFERENCES
IN
SUBCHAPTER.—Sub-
chapter II of chapter 1 of such title is amended by 
striking ‘‘this subchapter’’ each place it appears and 
inserting ‘‘chapter’’. 
(6) SUBCHAPTER
HEADINGS.—Chapter 1 of 
such title is further amended—
(A) by striking ‘‘SUBCHAPTER I—GEN-
ERAL PROVISIONS’’ preceding section 101; 
and 
(B) by striking ‘‘SUBCHAPTER II—IN-
FRASTRUCTURE FINANCE’’ preceding sec-
tion 181. 
(c) CHAPTER 6.—Such title is further amended by 
adding at the end the following:
‘‘CHAPTER 6—INFRASTRUCTURE FINANCE
‘‘Sec. 
‘‘601. Generally applicable provisions. 
‘‘602. Determination of eligibility and project selection. 
‘‘603. Secured loans. 
‘‘604. Lines of credit. 
‘‘605. Program administration. 
‘‘606. State and local permits. 
‘‘607. Regulations. 
‘‘608. Funding. 
‘‘609. State infrastructure bank program.’’.
(d) MOVING AND REDESIGNATING.—Such title is fur-
ther amended—
168
(1) by redesignating sections 181 through 189 
as sections 601 through 609, respectively; 
(2) by moving such sections from chapter 1 to 
chapter 6 (as added by subsection (c)); and 
(3) by inserting such sections after the analysis 
for chapter 6. 
(e) ANALYSIS FOR CHAPTER 1 AND TABLE OF CHAP-
TERS.—
(1) ANALYSIS FOR CHAPTER 1.—The analysis 
for chapter 1 of such title is amended—
(A) by striking the headings for sub-
chapters I and II; and 
(B) by striking the items relating to sec-
tions 181 through 189. 
(2) TABLE OF CHAPTERS.—The table of chap-
ters for such title is amended by inserting after the 
item relating to chapter 5 the following:
6. Infrastructure and Finance .................................................................
601
SEC. 1603. INTERSTATE SYSTEM RECONSTRUCTION AND 
REHABILITATION PILOT PROGRAM. 
[Reserved.] 
Subtitle G—High Priority Projects
SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM. 
(a) 
AUTHORIZATION
OF
HIGH
PRIORITY 
PROJECTS.—Section 117(a) of title 23, United States 
Code, is amended by striking ‘‘1602 of the Transportation
169
Equity Act for the 21st Century’’ and inserting ‘‘1701 of 
the Transportation Equity Act: A Legacy for Users’’. 
(b) ALLOCATION PERCENTAGES.—Section 117(b) of 
such title is amended by striking paragraphs (1) through 
(6) and inserting the following: 
‘‘(1) 13 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2004; 
‘‘(2) 14.3 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2005; 
‘‘(3) 15.7 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2006; 
‘‘(4) 17.2 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2007; 
‘‘(5) 18.9 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2008; and 
‘‘(6) 20.9 percent of such amount shall be avail-
able for obligation beginning in fiscal year 2009.’’. 
(c) FEDERAL SHARE.—Section 117(c) of such title 
is amended by striking ‘‘; except’’ and all that follows 
through ‘‘cost thereof’’. 
(d) ADVANCE CONSTRUCTION.—Section 117(e) of 
such title is amended by striking ‘‘1602 of the Transpor-
tation Equity Act for the 21st Century’’ each place it ap-
pears and inserting ‘‘1701 of the Transportation Equity 
Act: A Legacy for Users’’.
170
(e) AVAILABILITY
OF OBLIGATION LIMITATION.—
Section 117(g) of such title is amended by striking 
‘‘Transportation Equity Act for the 21st Century’’ and in-
serting ‘‘Transportation Equity Act: A Legacy for Users’’.
TITLE II—HIGHWAY SAFETY 
SEC. 2001. AUTHORIZATIONS OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated out of the Highway Trust Fund 
(other than the Mass Transit Account): 
(1) HIGHWAY
SAFETY
PROGRAMS.—For car-
rying out section 402 of title 23, United States 
Code, 
$245,000,000 
for 
fiscal 
year 
2004, 
$250,000,000 for fiscal year 2005, $255,000,000 for 
fiscal year 2006, $260,000,000 for fiscal year 2007, 
$265,000,000 
for 
fiscal 
year 
2008, 
and 
$270,000,000 for fiscal year 2009. 
(2) HIGHWAY SAFETY RESEARCH AND DEVEL-
OPMENT.—For carrying out section 403 of title 23, 
United States Code, $91,000,000 for each of fiscal 
years 2004 through 2009. 
(3) 
OCCUPANT
PROTECTION
INCENTIVE 
GRANTS.—For carrying out section 405 of title 23, 
United States Code, $140,000,000 for fiscal year 
2004, 
$145,000,000 
for 
fiscal 
year 
2005, 
$150,000,000 for fiscal year 2006, $155,000,000 for
171
fiscal year 2007, $160,000,000 for fiscal year 2008, 
and $165,000,000 for fiscal year 2009. 
(4) ALCOHOL-IMPAIRED
DRIVING
COUNTER-
MEASURES INCENTIVE GRANT PROGRAM.—For car-
rying out section 410 of title 23, United States 
Code, 
$135,000,000 
for 
fiscal 
year 
2004, 
$140,000,000 for fiscal year 2005, $145,000,000 for 
fiscal year 2006, $150,000,000 for fiscal year 2007, 
$155,000,000 
for 
fiscal 
year 
2008, 
and 
$160,000,000 for fiscal year 2009. 
(5) STATE TRAFFIC SAFETY INFORMATION IM-
PROVEMENTS.—For carrying out section 412 of title 
23, United States Code, $25,000,000 for fiscal year 
2004, 
$30,000,000 
for 
fiscal 
year 
2005, 
$35,000,000 for fiscal year 2006, $40,000,000 for 
fiscal year 2007, $45,000,000 for fiscal year 2008, 
and $50,000,000 for fiscal year 2009. 
(6) NATIONAL
DRIVER
REGISTER.—For car-
rying out chapter 303 of title 49, United States 
Code, by the National Highway Traffic Safety Ad-
ministration, $4,000,000 for each of fiscal years 
2004 through 2009. 
(7) HIGH
VISIBILITY
ENFORCEMENT
PRO-
GRAM.—For carrying out section 2005 of this title,
172
$10,000,000 for each of fiscal years 2004 through 
2009. 
(b) APPLICABILITY OF TITLE 23.—Amounts made 
available under subsection (a) for each of fiscal years 2004 
through 2009 shall be available for obligation in the same 
manner as if such funds were apportioned under chapter 
1 of title 23, United States Code. 
(c) TRANSFERS.—In each fiscal year, the Secretary 
may transfer any amounts remaining available under 
paragraph (3), (4), or (5) of subsection (a) to the amounts 
made available under any other of such paragraphs in 
order to ensure, to the maximum extent possible, that each 
State receives the maximum incentive funding for which 
the State is eligible under sections 405, 410, and 412 of 
title 23, United States Code. 
SEC. 2002. OCCUPANT PROTECTION INCENTIVE GRANTS. 
(a) GENERAL AUTHORITY.—Section 405(a) of title 
23, United States Code, is amended—
(1) in paragraph (2) by striking ‘‘Transpor-
tation Equity Act for the 21st Century’’ and insert-
ing ‘‘Transportation Equity Act: A Legacy for 
Users’’; 
(2) in paragraph (3) by striking ‘‘1997’’ and in-
serting ‘‘2003’’; and
174
(3) in paragraphs (4)(A), (4)(B), and (4)(C) by 
inserting after ‘‘years’’ the following: ‘‘beginning 
after September 30, 2003,’’. 
(b) BASIC GRANT A.—Section 410(b)(1) of title 23, 
United States Code, is amended—
(1) by striking ‘‘A State shall become eligible’’ 
and inserting the following: ‘‘A State shall be eligible 
for a grant under this paragraph if the State has an 
alcohol-related fatality rate per 100,000,000 vehicle 
miles traveled of 0.5 or less as of the date of the 
grant, as determined by the Secretary using the Fa-
tality Analysis Reporting System of the National 
Highway Traffic Safety Administration. A State 
may also become eligible’’; 
(2) by striking ‘‘at least 5 of’’ and inserting ‘‘at 
least 6 of’’; 
(3) in subparagraph (A) is amended—
(A) by striking ‘‘and’’ at the end of clause 
(i)(II); 
(B) by striking the period at the end of 
clause (ii) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(iii) the suspension and revocation 
referred to under clause (i) may allow an 
individual to operate a motor vehicle to
175
and from employment or in pursuit of em-
ployment if an ignition interlock device is 
installed on each of the motor vehicles 
owned or operated, or both, by the indi-
vidual.’’; 
(4) by striking subparagraph (F) and inserting 
the following: 
‘‘(F) OUTREACH
PROGRAM.—A judicial 
and prosecutorial education, training, and out-
reach program that provides information on the 
appropriateness and effectiveness of sentencing 
options.’’; and 
(5) by adding at the end the following: 
‘‘(H) SELF-SUSTAINING
DRUNK
DRIVING 
PREVENTION
PROGRAM.—A 
self-sustaining 
drunk driving prevention program under which 
a significant portion of the fines or surcharges 
collected from individuals apprehended and 
fined for operating a motor vehicle while under 
the influence of alcohol are returned to those 
communities that have comprehensive programs 
for the prevention of such operations of motor 
vehicles. 
‘‘(I) PROGRAMS FOR EFFECTIVE ALCOHOL 
REHABILITATION.—A program for effective in-
176
patient and outpatient alcohol rehabilitation 
based on mandatory assessment and appro-
priate treatment for repeat offenders described 
in subparagraph (A)(i)(II).’’. 
(c) BASIC GRANT B.—Section 410(b) of title 23, 
United States Code, is amended—
(1) by striking paragraph (2) and inserting the 
following: 
‘‘(2) BASIC GRANT B.—A State shall become el-
igible for a grant under this paragraph if the 
State—
‘‘(A) has an alcohol-related fatality rate 
per 100,000,000 vehicle miles traveled of 0.8 or 
more as of the date of the grant, as determined 
by the Secretary using the Fatality Analysis 
Reporting System of the National Highway 
Traffic Safety Administration; and 
‘‘(B) establishes, subject to such require-
ments as the Secretary may prescribe, a task 
force to evaluate and recommend changes to the 
State’s drunk driving programs.’’; and 
(2) in paragraph (3)—
(A) by striking ‘‘25 percent’’ and inserting 
‘‘100 percent’’; and
177
(B) by striking ‘‘1997’’ and inserting 
‘‘2003’’. 
(d) SUPPLEMENTAL GRANTS.—Section 410(c) of title 
23, United States Code, is amended to read as follows: 
‘‘(c) ALLOCATION FOR BASIC GRANTS B.—Not more 
than $20,000,000 per fiscal year of amounts made avail-
able to carry out this section shall be available for making 
grants under subsection (b)(2).’’. 
SEC. 2004. STATE TRAFFIC SAFETY INFORMATION SYSTEM 
IMPROVEMENTS. 
(a) IN GENERAL.—Chapter 4 of title 23, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 412. State traffic safety information system im-
provements 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—Subject 
to the requirements of this section, the Secretary 
shall make grants to States that adopt and imple-
ment effective programs to—
‘‘(A) improve the timeliness, accuracy, 
completeness, uniformity, integration, and ac-
cessibility of the safety data of the State that 
is needed to identify priorities for national,
178
State, and local highway and traffic safety pro-
grams; 
‘‘(B) evaluate the effectiveness of efforts to 
make such improvements; 
‘‘(C) link these State data systems, includ-
ing traffic records, with other data systems 
within the State, such as systems that contain 
medical, roadway, and economic data; and 
‘‘(D) improve the compatibility and inter-
operability of the data systems of the State 
with national data systems and data systems of 
other States and enhance the ability of the Sec-
retary to observe and analyze national trends in 
crash occurrences, rates, outcomes, and cir-
cumstances. 
‘‘(2) USE
OF
GRANTS.—A State may use a 
grant received under this section only to implement 
such programs. 
‘‘(3) MODEL DATA ELEMENTS.—The Secretary, 
in consultation with States and other appropriate 
parties, shall determine the model data elements 
necessary to observe and analyze State and national 
trends in crash occurrences, rates, outcomes, and 
circumstances. In order to become eligible for a 
grant under this section, a State shall certify to the
179
Secretary the State’s adoption and use of such 
model data elements. 
‘‘(4) MAINTENANCE
OF
EFFORT.—No grant 
may be made to a State under this section in any 
fiscal year unless the State enters into such agree-
ments with the Secretary as the Secretary may re-
quire ensuring that the State will maintain its ag-
gregate expenditures from all other sources for high-
way safety data programs at or above the average 
level of such expenditures in the 2 fiscal years pre-
ceding the date of enactment of this section. 
‘‘(5) FEDERAL SHARE.—The Federal share of 
the cost of implementing in a fiscal year a program 
of a State pursuant to paragraph (1) shall not ex-
ceed 80 percent. 
‘‘(b) FIRST-YEAR GRANTS.—To be eligible for a first-
year grant under this section, a State shall demonstrate 
to the satisfaction of the Secretary that the State has—
‘‘(1) established a highway safety data and traf-
fic records coordinating committee with a multidisci-
plinary membership that includes, among others, 
managers, collectors, and users of traffic records 
and public health and injury control data systems; 
and
180
‘‘(2) developed a multiyear highway safety data 
and traffic records system strategic plan that ad-
dresses existing deficiencies in the State’s highway 
safety data and traffic records system and is ap-
proved by the highway safety data and traffic 
records coordinating committee and—
‘‘(A) specifies how existing deficiencies in 
the State’s highway safety data and traffic 
records system were identified; 
‘‘(B) prioritizes, based on the identified 
highway safety data and traffic records system 
deficiencies, the highway safety data and traffic 
records system needs and goals of the State, in-
cluding the activities described in subsection 
(a)(1); 
‘‘(C) identifies performance-based meas-
ures by which progress toward those goals will 
be determined; 
‘‘(D) specifies how the grant funds and 
any other funds of the State will be used to ad-
dress needs and goals identified in the 
multiyear plan; and 
‘‘(E) includes a current report on the 
progress in implementing the multiyear plan
181
that documents progress toward the specified 
goals. 
‘‘(c) SUCCEEDING-YEAR GRANTS.— 
‘‘(1) ELIGIBILITY.—A State shall be eligible for 
a grant under this subsection in a fiscal year suc-
ceeding the first fiscal year in which the State re-
ceives a grant under subsection (b) if the State, to 
the satisfaction of the Secretary—
‘‘(A) submits an updated multiyear plan 
that meets the requirements of subsection 
(b)(2); 
‘‘(B) certifies that its highway safety data 
and traffic records coordinating committee con-
tinues to operate and supports the multiyear 
plan; 
‘‘(C) specifies how the grant funds and any 
other funds of the State will be used to address 
needs and goals identified in the multiyear plan; 
‘‘(D) demonstrates measurable progress to-
ward achieving the goals and objectives identi-
fied in the multiyear plan; and 
‘‘(E) includes a current report on the 
progress in implementing the multiyear plan. 
‘‘(d) GRANT AMOUNTS.—
182
‘‘(1) IN
GENERAL.—The amount of a grant 
made to a State for a fiscal year under this section 
shall equal an amount determined by multiplying—
‘‘(A) the amount appropriated to carry out 
this section for such fiscal year; by 
‘‘(B) the ratio that the funds apportioned 
to the State under section 402 for fiscal year 
2003 bears to the funds apportioned to all 
States under section 402 for fiscal year 2003. 
‘‘(2) 
MINIMUM
AMOUNT.—Notwithstanding 
subparagraph (A)—
‘‘(A) a State eligible for a first-year grant 
under this section shall not receive less than 
$300,000; and 
(B) a State eligible for a succeeding-year 
grant under this section shall not receive less 
than $500,000. 
‘‘(e) ADMINISTRATIVE EXPENSES.—Funds author-
ized to be appropriated to carry out this section in a fiscal 
year shall be subject to a deduction not to exceed 5 percent 
for the necessary costs of administering the provisions of 
this section. 
‘‘(f) APPLICABILITY OF CHAPTER 1.—The provisions 
contained in section 402(d) shall apply to this section.’’.
183
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 4 of title 23, United States Code, is amended by 
adding at the end the following:
‘‘412. State traffic safety information system improvements.’’.
SEC. 2005. HIGH VISIBILITY ENFORCEMENT PROGRAM. 
The Secretary shall establish a program to support 
national impaired driving mobilization and enforcement ef-
forts and national safety belt mobilization and enforce-
ment, including the purchase of national paid advertise-
ment (including production and placement) to support 
such efforts. 
SEC. 2006. MOTORCYCLE CRASH CAUSATION STUDY. 
(a) IN GENERAL.—Using funds made available to 
carry out section 403 of title 23, United States Code, the 
Secretary shall conduct a study of the causes of motorcycle 
crashes. 
(b) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall transmit to 
Congress a report on the results of the study. 
SEC. 2007. CHILD SAFETY AND BOOSTER SEATS. 
[Reserved.]
184
TITLE III—FEDERAL TRANSIT 
ADMINISTRATION PROGRAMS 
SEC. 3001. SHORT TITLE; AMENDMENTS TO TITLE 49, 
UNITED STATES CODE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Federal Public Transportation Act of 2004’’. 
(b) AMENDMENTS TO TITLE 49, UNITED STATES 
CODE.—Except as otherwise specifically provided, when-
ever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other 
provision of law, the reference shall be considered to be 
made to a section or other provision of title 49, United 
States Code. 
SEC. 3002. POLICIES, FINDINGS, AND PURPOSES. 
(a) IN GENERAL.—Section 5301(a) is amended to 
read as follows: 
‘‘(a) DEVELOPMENT AND REVITALIZATION OF PUB-
LIC TRANSPORTATION SYSTEMS.—It is in the interest of 
the United States to foster the development and revitaliza-
tion of public transportation systems that—
‘‘(1) maximize the safe, secure, and efficient 
mobility of individuals; 
‘‘(2) minimize environmental impacts; and 
‘‘(3) minimize transportation-related fuel con-
sumption and reliance on foreign oil.’’.
185
(b) 
PRESERVING
THE
ENVIRONMENT.—Section 
5301(e) is amended—
(1) by striking ‘‘an urban’’ and inserting ‘‘a’’; 
and 
(2) by striking ‘‘under sections 5309 and 5310 
of this title’’. 
(c) GENERAL PURPOSES.—Section 5301(f) is amend-
ed—
(1) in paragraph (1)—
(A) by striking ‘‘mass’’ the first place it 
appears and inserting ‘‘public’’; and 
(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
(2) in paragraph (2)—
(A) by striking ‘‘urban mass’’ and insert-
ing ‘‘public’’; and 
(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘both 
public transportation companies and private 
companies engaged in public transportation’’; 
(3) in paragraph (3)—
(A) by striking ‘‘urban mass’’ and insert-
ing ‘‘public’’; and
186
(B) by striking ‘‘public or private mass 
transportation companies’’ and inserting ‘‘pub-
lic transportation companies or private compa-
nies engaged in public transportation’’; and 
(4) in paragraph (5) by striking ‘‘urban mass’’ 
and inserting ‘‘public’’. 
SEC. 3003. DEFINITIONS. 
(a) LEAD-IN.—Section 5302(a) is amended in the 
matter preceding paragraph (1) by striking ‘‘In this chap-
ter’’ and inserting ‘‘Except as otherwise specifically pro-
vided, in this chapter’’. 
(b) CAPITAL
PROJECT.—Section 5302(a)(1) is 
amended—
(1) in subparagraph (G) by inserting ‘‘construc-
tion, renovation, and improvement of intercity bus 
stations and terminals,’’ before ‘‘and the renovation 
and improvement of historic transportation facili-
ties,’’; 
(2) in subparagraph (G)(ii) by inserting ‘‘(other 
than a intercity bus station or terminal)’’ after 
‘‘commercial revenue-producing facility’’; 
(3) by striking ‘‘or’’ at the end of subparagraph 
(H); 
(4) by striking the period at the end of sub-
paragraph (I) and inserting a semicolon; and
187
(5) by adding at the end the following: 
‘‘(J) crime prevention and security—
‘‘(i) including—
‘‘(I) projects to refine and de-
velop security and emergency response 
plans; 
‘‘(II) projects aimed at detecting 
chemical and biological agents in pub-
lic transportation; 
‘‘(III) the conduct of emergency 
response drills with public transpor-
tation agencies and local first re-
sponse agencies; and 
‘‘(IV) security training for public 
transportation employees; but 
‘‘(ii) excluding all expenses related to 
operations, other than such expenses in-
curred in conducting activities described in 
subclauses (III) and (IV); 
‘‘(K) establishment of a debt service re-
serve made up of deposits with a bondholders’ 
trustee in a noninterest bearing account for the 
purpose of ensuring timely payment of principal 
and interest on bonds issued by a grant recipi-
188
ent for purposes of financing an eligible project 
under this chapter; or 
‘‘(L) mobility management—
‘‘(i) consisting of short-range planning 
and management activities and projects for 
improving 
coordination 
among 
public 
transportation and other transportation 
service providers carried out by a recipient 
or subrecipient through an agreement en-
tered into with a person, including a gov-
ernmental entity, under this chapter (other 
than section 5309); but 
‘‘(ii) excluding operating public trans-
portation services.’’. 
(c) INDIVIDUAL
WITH
A
DISABILITY.—Section 
5302(a)(5) is amended—
(1) by striking ‘‘HANDICAPPED
INDIVIDUAL’’ 
and inserting ‘‘INDIVIDUAL
WITH
A
DISABILITY’’; 
and 
(2) by striking ‘‘handicapped individual’’ and 
inserting ‘‘individual with a disability’’. 
(d) MASS TRANSPORTATION.—Section 5302(a)(7) is 
amended to read as follows: 
‘‘(7) MASS TRANSPORTATION.—The term ‘mass 
transportation’ means public transportation.’’.
189
(e) PUBLIC TRANSPORTATION.—Section 5302(a)(10) 
is amended to read as follows: 
‘‘(10) PUBLIC
TRANSPORTATION.—The term 
‘public transportation’ means transportation by a 
conveyance that provides regular and continuing 
general or special transportation to the public, but 
does not include schoolbus, charter, or sightseeing 
transportation.’’. 
(f) URBANIZED
AREA.—Section 5302(a)(17) is 
amended to read as follows: 
‘‘(17) URBANIZED AREA.—The term ‘urbanized 
area’ means an area encompassing a population of 
at least 50,000 people that has been defined and 
designated in the latest decennial census as an ur-
banized area by the Secretary of Commerce.’’. 
(g) AUTHORITY TO MODIFY DEFINITION.—Section 
5302(b) is amended—
(1) by striking ‘‘HANDICAPPED INDIVIDUAL’’ 
and inserting ‘‘INDIVIDUAL WITH A DISABILITY’’; 
and 
(2) by striking ‘‘handicapped individual’’ and 
inserting ‘‘individual with a disability’’. 
SEC. 3004. METROPOLITAN PLANNING. 
Section 5303 is amended to read as follows:
190
‘‘§ 5303. Metropolitan planning 
‘‘(a) IN GENERAL.—Grants made under sections 
5307, 5308, 5309, 5310, 5311, 5316, and 5317 shall be 
carried out in accordance with the metropolitan planning 
provisions of chapter 52. 
‘‘(b) CERTIFICATION.—
‘‘(1) IN GENERAL.—The Secretary shall ensure 
and certify that each metropolitan planning organi-
zation in each transportation management area is 
carrying out its responsibilities under applicable laws 
of the United States. The Secretary may make the 
certification only if the organization is complying 
with chapter 52 and other applicable requirements 
of laws of the United States and the organization 
and chief executive officer have approved a transpor-
tation improvement program for the area. 
‘‘(2) LIMITATION
ON
WITHHOLDING
CERTIFI-
CATION.—The Secretary may not withhold certifi-
cation based on the policies and criteria a metropoli-
tan planning organization or mass transportation 
grant recipient establishes under section 5306(a) for 
deciding the feasibility of private enterprise partici-
pation.’’. 
SEC. 3005. STATEWIDE PLANNING. 
(a) IN GENERAL.—Section 5304 is amended to read 
as follows:
191
‘‘§ 5304. Statewide planning 
‘‘Grants made under sections 5307, 5308, 5309, 
5310, 5311, 5316, and 5317 shall be carried out in ac-
cordance with the statewide planning provisions of chapter 
52.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5304 and inserting the following:
‘‘5304. Statewide planning.’’.
SEC. 3006. PLANNING PROGRAMS. 
(a) IN GENERAL.—Section 5305 is amended to read 
as follows: 
‘‘§ 5305. Planning programs 
‘‘(a) STATE DEFINED.—In this section the term 
‘State’ means a State of the United States, the District 
of Columbia, and Puerto Rico. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) ASSISTANCE.—Under criteria to be estab-
lished by the Secretary, the Secretary may provide 
assistance for—
‘‘(A) the development of transportation 
plans and programs; 
‘‘(B) planning, engineering, designing, and 
evaluating a public transportation project; and 
‘‘(C) for other technical studies.
192
‘‘(2) 
GRANTS, 
AGREEMENTS, 
AND
CON-
TRACTS.—The Secretary may provide assistance 
under paragraph (1)—
‘‘(A) by making grants to States, authori-
ties of States, metropolitan planning organiza-
tions, and local governmental authorities; or 
‘‘(B) by making agreements with other de-
partments, agencies, and instrumentalities of 
the Government. 
‘‘(3) ELIGIBLE ACTIVITIES.—Activities eligible 
for assistance under paragraph (1) include the fol-
lowing: 
‘‘(A) Studies related to management, plan-
ning, operations, capital requirements, and eco-
nomic feasibility. 
‘‘(B) 
Evaluating 
previously 
financed 
projects. 
‘‘(C) Peer reviews and exchanges of tech-
nical data, information, assistance, and related 
activities in support of planning and environ-
mental analyses among metropolitan planning 
organizations and other transportation plan-
ners. 
‘‘(D) Other similar and related activities 
preliminary to and in preparation for con-
193
structing, acquiring, or improving the operation 
of facilities and equipment. 
‘‘(c) PURPOSE.—To the extent practicable, the Sec-
retary shall ensure that amounts appropriated or made 
available under section 5338 to carry out this section and 
sections 5303 and 5304 are used to support balanced and 
comprehensive transportation planning that considers the 
relationships among land use and all transportation 
modes, without regard to the programmatic source of the 
planning amounts. 
‘‘(d) METROPOLITAN PLANNING PROGRAM.—
‘‘(1) APPORTIONMENT TO STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall 
apportion 80 percent of the amounts made 
available under subsection (g)(1) among the 
States to carry out sections 5303 and 5306 in 
the ratio that—
‘‘(i) the population of urbanized areas 
in each State, as shown by the latest avail-
able decennial census of population; bears 
to 
‘‘(ii) the total population of urbanized 
areas in all States, as shown by that cen-
sus.
194
‘‘(B) MINIMUM
APPORTIONMENT.—Not-
withstanding subparagraph (A), a State may 
not receive less than 0.5 percent of the amount 
apportioned under this paragraph. 
‘‘(2) ALLOCATION TO MPO’S.—Amounts appor-
tioned to a State under paragraph (1) shall be made 
available promptly after allocation to metropolitan 
planning organizations in the State designated under 
this section under a formula that—
‘‘(A) considers population of urbanized 
areas; 
‘‘(B) provides an appropriate distribution 
for urbanized areas to carry out the cooperative 
processes described in this section; 
‘‘(C) the State develops in cooperation with 
the metropolitan planning organizations; and 
‘‘(D) the Secretary approves. 
‘‘(3) SUPPLEMENTAL AMOUNTS—
‘‘(A) IN
GENERAL.—The Secretary shall 
apportion 20 percent of the amounts made 
available under subsection (g)(1) among the 
States to supplement allocations made under 
paragraph (1) for metropolitan planning organi-
zations.
195
‘‘(B) FORMULA.—The Secretary shall ap-
portion amounts referred to in subparagraph 
(A) under a formula that reflects the additional 
cost of carrying out planning, programming, 
and project selection responsibilities under sec-
tions 5303 and 5306 in certain urbanized 
areas. 
‘‘(e) STATE PLANNING AND RESEARCH PROGRAM.—
‘‘(1) APPORTIONMENT TO STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall 
apportion the amounts made available under 
subsection (g)(2) among the States for grants 
and contracts to carry out sections 5303 
through 5306, 5312, 5315, and 5322 in the 
ratio that—
‘‘(i) the population of urbanized areas 
in each State, as shown by the latest avail-
able decennial census; bears to 
‘‘(ii) the population of urbanized areas 
in all States, as shown by that census. 
‘‘(B) MINIMUM
APPORTIONMENT.—Not-
withstanding subparagraph (A), a State may 
not receive less than 0.5 percent of the amount 
apportioned under this paragraph.
196
‘‘(2) SUPPLEMENTAL
AMOUNTS—A State, as 
the State considers appropriate, may authorize part 
of the amount made available under this subsection 
to be used to supplement amounts made available 
under subsection (d). 
‘‘(f) GOVERNMENT’S SHARE OF COSTS.—The Gov-
ernment’s share of the cost of an activity funded using 
amounts made available under this section may not exceed 
80 percent of the cost of the activity unless the Secretary 
determines that it is in the interests of the Government 
not to require a State or local match. 
‘‘(g) ALLOCATION OF FUNDS.—Of the funds made 
available by or appropriated to carry out this section 
under section 5338(c) for fiscal years 2004 through 
2009—
‘‘(1) 82.72 percent shall be available for the 
metropolitan planning program under subsection (d); 
and 
‘‘(2) 17.28 percent shall be available to carry 
out subsection (e). 
‘‘(h) AVAILABILITY OF FUNDS.—Funds apportioned 
under this section in a State shall remain available for 
obligation in that State for a period of 3 years after the 
last day of the fiscal year for which the funds are author-
ized. Any amounts so apportioned that remain unobligated
197
at the end of that period shall be reapportioned among 
the States.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5305 and inserting the following:
‘‘5305. Planning programs.’’.
SEC. 3007. PRIVATE ENTERPRISE PARTICIPATION. 
(a) SECTION HEADING.—Section 5306 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5306. Private enterprise participation in planning; 
relationship to other limitations’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5306 and inserting the following:
‘‘5306. Private enterprise participation in planning; relationship to other limita-
tions.’’.
SEC. 3008. URBANIZED AREA FORMULA GRANTS. 
(a) TECHNICAL AMENDMENTS.—Section 5307 is 
amended—
(1) by striking subsections (h) and (k); and 
(2) by redesignating subsections (i), (j), (l), 
(m), and (n) as subsections (h), (i), (j), (k), and (l), 
respectively. 
(b) DEFINITIONS.—Section 5307(a)(2)(A) is amend-
ed—
198
(1) by striking by striking ‘‘a person’’ and in-
serting ‘‘an entity’’; and 
(2) by striking ‘‘section 5305(a) of this title’’ 
and inserting ‘‘chapter 52’’. 
(c) GENERAL
AUTHORITY.—Section 5307(b) is 
amended—
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants under this section for—
‘‘(A) capital projects and associated capital 
maintenance items; 
‘‘(B) planning; 
‘‘(C) transit enhancements; and 
‘‘(D) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of less than 
200,000.’’; 
(2) in the heading to paragraph (2) by striking 
‘‘FISCAL YEAR 2003 AND FOR THE PERIOD OF OCTO-
BER 1, 2003, THROUGH FEBRUARY 29, 2004’’ and in-
serting ‘‘FISCAL YEARS 2003 THROUGH 2005’’; 
(3) in paragraph (2)(A) by striking ‘‘fiscal year 
2003’’ and all that follows through ‘‘2004’’ and in-
serting ‘‘fiscal years 2003, 2004, and 2005,’’;
199
(4) in paragraph (3) by striking ‘‘section 
5305(a) of this title’’ and inserting ‘‘chapter 52’’; 
and 
(5) in paragraph (3)(A) by striking ‘‘section 
5305 of this title’’ and inserting ‘‘chapter 52’’. 
(d) GRANT
RECIPIENT
REQUIREMENTS.—Section 
5307(d)(1) is amended—
(1) in subparagraph (A) by inserting ‘‘, includ-
ing safety and security aspects of the program’’ 
after ‘‘program’’; 
(2) in subparagraph (H) by striking ‘‘sections 
5301(a) and (d), 5303–5306, and 5310(a)–(d) of 
this title’’ and inserting ‘‘subsections (a) and (d) of 
section 5301 and sections 5303 through 5306’’; 
(3) in subparagraph (I) by striking ‘‘and’’ at 
the end; and 
(4) by adding at the end the following: 
‘‘(K) in the case of a recipient for an ur-
banized area with a population of at least 
200,000—
‘‘(i) will expend one percent of the 
amount the recipient receives each fiscal 
year under this section for projects for 
transit enhancements, as defined in section 
5302(a); and
200
‘‘(ii) will submit an annual report list-
ing projects carried out in the preceding 
fiscal year with those funds; and’’. 
(e) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5307(e) is amended to read as follows: 
‘‘(e) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project (including associated capital maintenance 
items) under this section shall be for 80 percent of 
the net project cost of the project. The recipient may 
provide additional local matching amounts. 
‘‘(2) OPERATING EXPENSES.—A grant for oper-
ating expenses under this section may not exceed 50 
percent of the net project cost of the project. 
‘‘(3) REMAINDER.—The remainder of the net 
project cost shall be provided—
‘‘(A) in cash from sources other than 
amounts of the Government or revenues from 
providing public transportation (excluding reve-
nues derived from the sale of advertising and 
concessions); 
‘‘(B) from an undistributed cash surplus, a 
replacement or depreciation cash fund or re-
serve, or new capital; and
201
‘‘(C) from amounts received under a serv-
ice agreement with a State or local social serv-
ice agency or private social service organiza-
tion.’’. 
(f) REVIEWS, AUDITS, AND EVALUATIONS.—Section 
5307(h)(1)(A) (as redesignated by subsection (a) of this 
section) is amended by striking ‘‘shall’’ and inserting 
‘‘may’’. 
(g) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5307(l) (as redesignated by subsection (a) of this section) 
is amended—
(1) by striking paragraph (1); 
(2) by redesignating paragraph (1) as para-
graph (2); 
(3) by inserting ‘‘THIS
CHAPTER.—’’ before 
‘‘Section 5302’’; 
(4) by adding at the end the following: 
‘‘(2) CHAPTER 15 OF TITLE 5.—The provision 
of assistance under this chapter shall not be con-
strued as bringing within the application of chapter 
15 of title 5 any nonsupervisory employee of a public 
transportation system (or any other agency or entity 
performing related functions) to which such chapter 
is otherwise inapplicable.’’; and
202
(5) by aligning the left margin of paragraph (1) 
(as so redesignated) with paragraph (2) (as added 
by paragraph (4) of this subsection). 
SEC. 3009. CLEAN FUELS FORMULA GRANT PROGRAM. 
Section 5308 is amended to read as follows: 
‘‘§ 5308. Clean fuels formula grant program 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) CLEAN FUEL BUS.—The term ‘clean fuel 
bus’ means a passenger vehicle used to provide pub-
lic transportation that—
‘‘(A) is powered by—
‘‘(i) compressed natural gas; 
‘‘(ii) liquefied natural gas; 
‘‘(iii) biodiesel fuels; 
‘‘(iv) batteries; 
‘‘(v) alcohol-based fuels; 
‘‘(vi) hybrid electric; 
‘‘(vii) fuel cell; 
‘‘(viii) clean diesel, to the extent al-
lowed under this section; or 
‘‘(ix) other low or zero emissions tech-
nology; and
203
‘‘(B) the Administrator of the Environ-
mental Protection Agency has certified suffi-
ciently reduces harmful emissions. 
‘‘(2) DESIGNATED RECIPIENT.—The term ‘des-
ignated recipient’ has the meaning that term has in 
section 5307(a)(2). 
‘‘(3) ELIGIBLE
PROJECT.—The term ‘eligible 
project’—
‘‘(A) means a project for—
‘‘(i) purchasing or leasing clean fuel 
buses, including buses that employ a light-
weight composite primary structure; 
‘‘(ii) constructing or leasing clean fuel 
buses or electrical recharging facilities and 
related equipment for such buses; 
‘‘(iii) improving existing mass trans-
portation facilities to accommodate clean 
fuel buses; 
‘‘(iv) repowering pre-1993 bus engines 
with clean fuel technology that meets the 
current urban bus emission standards; or 
‘‘(v) retrofitting or rebuilding pre-
1993 bus engines if before half life to re-
build; and
204
‘‘(B) in the discretion of the Secretary, 
may include projects relating to clean fuel, bio-
diesel, hybrid electric, or zero emissions tech-
nology buses that exhibit equivalent or superior 
emissions reductions to existing clean fuel or 
hybrid electric technologies. 
‘‘(b) AUTHORITY.—The Secretary shall make grants 
in accordance with this section to designated recipients to 
finance eligible projects. 
‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—Not later than January 1 
of each year, any designated recipient seeking to 
apply for a grant under this section for an eligible 
project shall submit an application to the Secretary, 
in such form and in accordance with such require-
ments as the Secretary shall establish by regulation. 
‘‘(2) CERTIFICATION
REQUIRED.—An applica-
tion submitted under paragraph (1) shall contain a 
certification by the applicant that the grantee will 
operate buses purchased with a grant under this sec-
tion only with clean fuels. 
‘‘(d) APPORTIONMENT OF FUNDS.—
‘‘(1) FORMULA.—Not later than February 1 of 
each year, the Secretary shall apportion amounts 
made available to carry out this section to des-
205
ignated recipients submitting applications under sub-
section (c), of which—
‘‘(A) two-thirds shall be apportioned to 
designated recipients with eligible projects in 
urban areas with a population of at least 
1,000,000, of which—
‘‘(i) 50 percent shall be apportioned, 
such that each such designated recipient 
receives a grant under this section in an 
amount equal to the ratio that—
‘‘(I) the number of vehicles in the 
bus fleet of the eligible project of the 
designated recipient, weighted by se-
verity of nonattainment for the area 
in which the eligible project is located, 
as provided in paragraph (2); bears to 
‘‘(II) the total number of vehicles 
in the bus fleets of all eligible projects 
in areas with a population of at least 
1,000,000 funded under this section, 
weighted by severity of nonattainment 
for all areas in which those eligible 
projects are located, as provided in 
paragraph (2); and
206
‘‘(ii) 50 percent shall be apportioned, 
such that each such designated recipient 
receives a grant under this section in an 
amount equal to the ratio that—
‘‘(I) the number of bus passenger 
miles (as that term is defined in sec-
tion 5336(c)) of the eligible project of 
the designated recipient, weighted by 
severity of nonattainment of the area 
in which the eligible project is located, 
as provided in paragraph (2); bears to 
‘‘(II) the total number of bus 
passenger miles of all eligible projects 
in areas with a population of at least 
1,000,000 funded under this section, 
weighted by severity of nonattainment 
of all areas in which those eligible 
projects are located, as provided in 
paragraph (2); and 
‘‘(B) one-third shall be apportioned to des-
ignated recipients with eligible projects in urban 
areas with a population of less than 1,000,000, 
of which—
‘‘(i) 50 percent shall be apportioned, 
such that each such designated recipient
207
receives a grant under this section in an 
amount equal to the ratio that—
‘‘(I) the number of vehicles in the 
bus fleet of the eligible project of the 
designated recipient, weighted by se-
verity of nonattainment for the area 
in which the eligible project is located, 
as provided in paragraph (2); bears to 
‘‘(II) the total number of vehicles 
in the bus fleets of all eligible projects 
in areas with a population of less than 
1,000,000 funded under this section, 
weighted by severity of nonattainment 
for all areas in which those eligible 
projects are located, as provided in 
paragraph (2); and 
‘‘(ii) 50 percent shall be apportioned, 
such that each such designated recipient 
receives a grant under this section in an 
amount equal to the ratio that—
‘‘(I) the number of bus passenger 
miles (as that term is defined in sec-
tion 5336(c) of the eligible project of 
the designated recipient, weighted by 
severity of nonattainment of the area
208
in which the eligible project is located, 
as provided in paragraph (2); and 
‘‘(II) the total number of bus 
passenger miles of all eligible projects 
in areas with a population of less than 
1,000,000 funded under this section, 
weighted by severity of nonattainment 
of all areas in which those eligible 
projects are located, as provided in 
paragraph (2). 
‘‘(2) WEIGHTING OF SEVERITY OF NONATTAIN-
MENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), subject to subparagraph (B), the 
number of buses in the bus fleet, or the number 
of passenger miles, shall be multiplied by a fac-
tor of—
‘‘(i) 1.0 if, at the time of the appor-
tionment, the area is a maintenance area 
(as that term is defined in section 101 of 
title 23) for ozone or carbon monoxide; 
‘‘(ii) 1.1 if, at the time of the appor-
tionment, the area is classified as a mar-
ginal ozone nonattainment area under sub-
209
part 2 of part D of title I of the Clean Air 
Act (42 U.S.C. 7511 et seq.); 
‘‘(iii) 1.2 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) a moderate ozone nonattain-
ment area under subpart 2 of part D 
of title I of the Clean Air Act (42 
U.S.C. 7511 et seq.); or 
‘‘(II) a moderate carbon mon-
oxide nonattainment area under sub-
part 3 of part D of title I of the Clean 
Air Act (42 U.S.C. 7512 et seq.); 
‘‘(iv) 1.3 if, at the time of the appor-
tionment, the area is classified as a serious 
ozone nonattainment area under subpart 2 
of part D of title I of the Clean Air Act 
(42 U.S.C. 7511 et seq.); or 
‘‘(v) 1.4 if, at the time of the appor-
tionment, the area is classified as a severe 
ozone nonattainment area under subpart 2 
of part D of title I of the Clean Air Act 
(42 U.S.C. 7511 et seq.); or 
‘‘(vi) 1.5 if, at the time of the appor-
tionment, the area is classified as an ex-
treme ozone nonattainment area under
210
subpart 2 of part D of title I of the Clean 
Air Act (42 U.S.C. 7511 et seq.). 
‘‘(B) ADDITIONAL ADJUSTMENT FOR CAR-
BON
MONOXIDE
AREAS.—If, in addition to 
being classified as a nonattainment or mainte-
nance area (as that term is defined in section 
101 of title 23) for ozone under subpart 2 of 
part D of title I of the Clean Air Act (42 
U.S.C. 7511 et seq.), the area was also classi-
fied under subpart 3 of part D of title I of that 
Act (42 U.S.C. 7512 et seq.) as a nonattain-
ment area for carbon monoxide, the weighted 
nonattainment or maintenance area fleet and 
passenger miles for the eligible project, as cal-
culated under subparagraph (A), shall be fur-
ther multiplied by a factor of 1.2. 
‘‘(3) MAXIMUM GRANT AMOUNT.—
‘‘(A) IN
GENERAL.—The amount of a 
grant made to a designated recipient under this 
section shall not exceed the lesser of—
‘‘(i) for an eligible project in an 
area—
‘‘(I) with a population of less 
than 1,000,000, $15,000,000; and
211
‘‘(II) with a population of at 
least 1,000,000, $25,000,000; or 
‘‘(ii) 80 percent of the total cost of 
the eligible project. 
‘‘(B) REAPPORTIONMENT.—Any amounts 
that would otherwise be apportioned to a des-
ignated recipient under this subsection that ex-
ceed the amount described in subparagraph (A) 
shall be reapportioned among other designated 
recipients in accordance with paragraph (1). 
‘‘(e) ADDITIONAL REQUIREMENTS.—
‘‘(1) LIMITATION ON USES.—Not less than 5 
percent of the amount made available by or appro-
priated under section 5338 in each fiscal year to 
carry out this section shall be available for any eligi-
ble projects for which an application is received from 
a designated recipient, for—
‘‘(A) the purchase or construction of hy-
brid electric or battery-powered buses; or 
‘‘(B) facilities specifically designed to serv-
ice those buses. 
‘‘(2) CLEAN DIESEL BUSES.—Not more than 35 
percent of the amount made available by or appro-
priated under section 5338 in each fiscal year to
212
carry out this section may be made available to fund 
clean diesel buses. 
‘‘(f) AVAILABILITY OF FUNDS.—Any amount made 
available or appropriated under this section—
‘‘(1) shall remain available to a project for 1 
year after the fiscal year for which the amount is 
made available or appropriated; and 
‘‘(2) that remains unobligated at the end of the 
period described in paragraph (1) shall be added to 
the amount made available in the following fiscal 
year.’’. 
SEC. 3010. CAPITAL INVESTMENT GRANTS. 
(a) SECTION HEADING.—Section 5309 is amended by 
striking the section heading and inserting the following: 
‘‘§ 5309. Capital investment grants’’. 
(b) LOANS FOR REAL PROPERTY INTERESTS.—Sec-
tion 5309 is amended—
(1) in subsections (a)(1) and (a)(2) by striking 
‘‘and loans’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as sub-
section (b). 
(c) PROJECT AS PART OF APPROVED PROGRAM OF 
PROJECTS.—Section 5309(b) (as redesignated by sub-
section (b) of this section) is amended—
213
(1) by striking ‘‘Except as provided in sub-
sections (b)(2) and (e) of the section, the’’ and in-
serting ‘‘The’’; and 
(2) by striking ‘‘or loan’’. 
(d) CRITERIA
AND
FUNDING.—Section 5309 is 
amended by striking subsections (e) through (p) and in-
serting the following: 
‘‘(c) MAJOR
CAPITAL
INVESTMENT
GRANTS
OF 
$75,000,000 OR MORE.—
‘‘(1) FULL FUNDING GRANT AGREEMENT.—A 
major new fixed guideway capital project financed 
under this subsection shall be carried out through a 
full funding grant agreement. The Secretary shall 
enter into a full funding grant agreement based on 
the evaluations and ratings required under this sub-
section. The Secretary shall not enter into a full 
funding grant agreement for a project unless that 
project is authorized for final design and construc-
tion. 
‘‘(2) APPROVAL
OF
GRANTS.—The Secretary 
may approve a grant under this section for a major 
new fixed guideway capital project only if the Sec-
retary, based upon evaluations and considerations 
set forth in paragraph (3), determines that the pro-
posal is—
214
‘‘(A) based on the results of an alter-
natives analysis and preliminary engineering; 
‘‘(B) justified based on a comprehensive 
review of its mobility improvements, environ-
mental benefits, cost effectiveness, operating ef-
ficiencies, transit supportive policies, and exist-
ing land use; and 
‘‘(C) supported by an acceptable degree of 
local financial commitment (including evidence 
of stable and dependable financing sources) to 
construct, maintain, and operate the system or 
extension. 
‘‘(3) CONSIDERATIONS.—
‘‘(A) RESULTS
OF
ALTERNATIVES
ANAL-
YSIS
AND
PRELIMINARY
ENGINEERING.—In 
evaluating a proposed project for purposes of 
making the finding required by paragraph 
(2)(A), the Secretary shall analyze and consider 
the results of the alternatives analysis and pre-
liminary engineering for the project. 
‘‘(B) PROJECT JUSTIFICATION.—In evalu-
ating a proposed project for purposes of making 
the finding required by paragraph (2)(B), the 
Secretary shall—
215
‘‘(i) consider the direct and indirect 
costs of relevant alternatives; 
‘‘(ii) consider factors such as conges-
tion relief, improved mobility, air pollution, 
noise pollution, energy consumption, and 
all associated ancillary and mitigation 
costs necessary to carry out each alter-
native analyzed and recognize reductions in 
local infrastructure costs achieved through 
compact land use development; 
‘‘(iii) identify and consider public 
transportation supportive existing land use 
policies and future patterns and the cost of 
suburban sprawl; 
‘‘(iv) consider the degree to which the 
project increases the mobility of the public 
transportation dependent population or 
promotes economic development; 
‘‘(v) consider population density and 
current transit ridership in the corridor; 
‘‘(vi) consider the technical capability 
of the grant recipient to construct the 
project;
216
‘‘(vii) adjust the project justification 
to reflect differences in local land, con-
struction, and operating costs; and 
‘‘(viii) consider other factors that the 
Secretary determines appropriate to carry 
out this chapter. 
‘‘(C) LOCAL FINANCIAL COMMITMENT.—In 
evaluating a proposed project under paragraph 
(2)(C), the Secretary shall require that—
‘‘(i) the proposed project plan pro-
vides for the availability of contingency 
amounts that the Secretary determines to 
be reasonable to cover unanticipated cost 
increases; 
‘‘(ii) each proposed local source of 
capital and operating financing is stable, 
reliable, and available within the proposed 
project timetable; and 
‘‘(iii) local resources are available to 
operate the overall proposed public trans-
portation system (including essential feeder 
bus and other services necessary to achieve 
the projected ridership levels) without re-
quiring a reduction in existing public
217
transportation services to operate the pro-
posed project. 
‘‘(D) ASSESSMENT
OF
LOCAL
FINANC-
ING.—In assessing the stability, reliability, and 
availability of proposed sources of local financ-
ing under paragraph (2)(C), the Secretary shall 
consider—
‘‘(i) existing grant commitments; 
‘‘(ii) the degree to which financing 
sources are dedicated to the purposes pro-
posed; 
‘‘(iii) any debt obligation that exists 
or is proposed by the recipient for the pro-
posed project or other public transpor-
tation purpose; and 
‘‘(iv) the extent to which the project 
has a local financial commitment that ex-
ceeds the required non-Federal share of 
the cost of the project. 
‘‘(4) 
EVALUATION
AND
RATING
OF 
PROJECTS.—A proposed project under this sub-
section may advance from alternatives analysis to 
preliminary engineering, and may advance from pre-
liminary engineering to final design and construc-
tion, only if the Secretary finds that the project
218
meets the requirements of this section and there is 
a reasonable likelihood that the project will continue 
to meet such requirements. In making the findings, 
the Secretary shall evaluate and rate the project as 
‘highly recommended’, ‘recommended’, or ‘not rec-
ommended’ based on the results of alternatives anal-
ysis, the project justification criteria, and the degree 
of local financial commitment, as required under this 
subsection. In rating the projects, the Secretary 
shall provide, in addition to the overall project rat-
ing, individual ratings for each of the criteria estab-
lished by regulation. 
‘‘(5) MAJOR
DEFINED.—In this section, the 
term ‘major’, as used with respect to a new fixed 
guideway capital project, means the Federal assist-
ance provided or to be provided under this section 
for the project is $75,000,000 or more.
‘‘(d) CAPITAL INVESTMENT GRANTS LESS THAN 
$75,000,000.—
‘‘(1) IN GENERAL.—Subject to the provisions of 
this subsection, if the Federal assistance provided or 
to be provided under this section with respect to a 
new fixed guideway capital project is less than 
$75,000,000, and not less than $25,000,000, the
219
project shall be subject to the requirements in this 
subsection. 
‘‘(2) SELECTION
CRITERIA.—The Secretary 
may provide Federal assistance under this sub-
section with respect to a proposed project only if the 
Secretary finds that the project is—
‘‘(A) based on the results of planning and 
alternatives analysis; 
‘‘(B) justified based on a review of its pub-
lic transportation supportive land use policies, 
cost effectiveness, and effect on local economic 
development; and 
‘‘(C) supported by an acceptable degree of 
local financial commitment. 
‘‘(3) PLANNING AND ALTERNATIVES.—In evalu-
ating a project under paragraph (1)(A), the Sec-
retary shall analyze and consider the results of plan-
ning and alternatives analysis for the project. 
‘‘(4) PROJECT JUSTIFICATION.—For purposes 
of making the finding under paragraph (1)(B), the 
Secretary shall—
‘‘(A) determine the degree to which public 
transportation supportive land use policies re-
lated to the project are consistent with local
220
land use policies and are likely to achieve local 
developmental goals; 
‘‘(B) determine the cost effectiveness of 
the project at the time of the initiation of rev-
enue service; 
‘‘(C) determine the degree to which the 
project will have a positive effect on local eco-
nomic development; 
‘‘(D) consider the reliability of the fore-
casts of costs and ridership associated with the 
project; and 
‘‘(E) consider other factors that the Sec-
retary determines appropriate to carry out this 
subsection. 
‘‘(5) LOCAL
FINANCIAL
COMMITMENT.—For 
purposes of paragraph (1)(C), the Secretary shall re-
quire that each proposed local source of capital and 
operating financing is stable, reliable, and available 
within the proposed project timetable. 
‘‘(6) ADVANCEMENT OF PROJECT TO DEVELOP-
MENT AND CONSTRUCTION.—
‘‘(A) GENERAL RULE.—A proposed project 
under this subsection may advance from plan-
ning and alternatives analysis to project devel-
opment and construction only if—
221
‘‘(i) the Secretary finds that the 
project meets the requirements of this sub-
section and there is a reasonable likelihood 
that the project will continue to meet such 
requirements; and 
‘‘(ii) the metropolitan planning orga-
nization has adopted the locally preferred 
alternative for the project into the long-
range transportation plan. 
‘‘(B) EVALUATION.—In making the find-
ings under subparagraph (A), the Secretary 
shall evaluate and rate the project as ‘rec-
ommended’ or ‘not recommended’ based on the 
results of the analysis of the project justifica-
tion criteria and the degree of local financial 
commitment, as required by this subsection. 
‘‘(7) CONTENTS
OF
PROJECT
CONSTRUCTION 
GRANT AGREEMENT.—A project construction grant 
agreement under this subsection shall specify the 
scope of the project to be constructed, the estimated 
net project cost of the project, the schedule under 
which the project shall be constructed, the maximum 
amount of funding to be obtained under this sub-
section, the proposed schedule for obligation of fu-
ture Federal grants, and the sources of funding
222
from other than the Government. The agreement 
may include a commitment on the part of the Sec-
retary to provide funding for the project in future 
fiscal years. 
‘‘(8) LIMITATION ON ENTRY INTO CONSTRUC-
TION
GRANT
AGREEMENT.—The Secretary may 
enter into a project construction grant agreement 
for a project under this subsection only if the project 
is authorized for construction and has been rated as 
‘recommended’ under this subsection. 
‘‘(9) REGULATIONS.—Not later than 120 days 
after the date of enactment of the Federal Public 
Transportation Act of 2004, the Secretary shall 
issue regulations establishing an evaluation and rat-
ing process for proposed projects under this sub-
section that is based on the results of project jus-
tification and local financial commitment, as re-
quired under this subsection. 
‘‘(10) FIXED GUIDEWAY CAPITAL PROJECT.—In 
this subsection, the term ‘fixed guideway capital 
project’ includes a corridor-based public transpor-
tation bus capital project if the majority of the 
project’s corridor right-of-way is dedicated alignment 
for exclusive use by public transportation vehicles for 
all or part of the day.
223
‘‘(e) PREVIOUSLY ISSUED LETTER OF INTENT OR 
FULL FUNDING GRANT AGREEMENT.—Subsections (c) 
and (d) do not apply to projects for which the Secretary 
has issued a letter of intent or entered into a full funding 
grant agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2004. 
‘‘(f) LETTERS OF INTENT, FULL FUNDING GRANT 
AGREEMENTS, AND EARLY SYSTEMS WORK AGREE-
MENTS.—
‘‘(1) LETTERS OF INTENT.—
‘‘(A) AMOUNTS
INTENDED
TO
BE
OBLI-
GATED.—The Secretary may issue a letter of 
intent to an applicant announcing an intention 
to obligate, for a capital project under this sec-
tion, an amount from future available budget 
authority specified in law that is not more than 
the amount stipulated as the financial partici-
pation of the Secretary in the project. When a 
letter is issued for fixed guideway projects, the 
amount shall be sufficient to complete at least 
an operable segment. 
‘‘(B) TREATMENT.—The issuance of a let-
ter under subparagraph (A) is deemed not to be 
an obligation under sections 1108(c), 1108(d),
224
1501, and 1502(a) of title 31 or an administra-
tive commitment. 
‘‘(2) FULL FUNDING GRANT AGREEMENTS.—
‘‘(A) TERMS.—The Secretary may make a 
full funding grant agreement with an applicant. 
The agreement shall—
‘‘(i) establish the terms of participa-
tion by the Government in a project under 
this section; 
‘‘(ii) establish the maximum amount 
of Government financial assistance for the 
project; 
‘‘(iii) cover the period of time for com-
pleting the project, including a period ex-
tending beyond the period of an authoriza-
tion; and 
‘‘(iv) make timely and efficient man-
agement of the project easier according to 
the law of the United States. 
‘‘(B) SPECIAL FINANCIAL RULES.—
‘‘(i) IN
GENERAL.—An agreement 
under this paragraph obligates an amount 
of available budget authority specified in 
law and may include a commitment, con-
tingent on amounts to be specified in law
225
in advance for commitments under this 
paragraph, 
to 
obligate 
an 
additional 
amount from future available budget au-
thority specified in law. 
‘‘(ii) STATEMENT
OF
CONTINGENT 
COMMITMENT.—The agreement shall state 
that the contingent commitment is not an 
obligation of the Government. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out a part of 
the project within a reasonable time are a 
cost of carrying out the project under a 
full funding grant agreement, except that 
eligible costs may not be more than the 
cost of the most favorable financing terms 
reasonably available for the project at the 
time of borrowing. The applicant shall cer-
tify, in a way satisfactory to the Secretary, 
that the applicant has shown reasonable 
diligence in seeking the most favorable fi-
nancing terms. 
‘‘(iv) COMPLETION
OF
OPERABLE 
SEGMENT.—The amount stipulated in an 
agreement under this paragraph for a fixed
226
guideway project shall be sufficient to com-
plete at least an operable segment. 
‘‘(3) EARLY SYSTEM WORK AGREEMENTS.—
‘‘(A) CONDITIONS.—The Secretary may 
make an early systems work agreement with an 
applicant if a record of decision under the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) has been issued on the 
project and the Secretary finds there is reason 
to believe—
‘‘(i) a full funding grant agreement 
for the project will be made; and 
‘‘(ii) the terms of the work agreement 
will promote ultimate completion of the 
project more rapidly and at less cost. 
‘‘(B) CONTENTS.—
‘‘(i) IN GENERAL.—A work agreement 
under this paragraph obligates an amount 
of available budget authority specified in 
law and shall provide for reimbursement of 
preliminary costs of carrying out the 
project, including land acquisition, timely 
procurement of system elements for which 
specifications are decided, and other activi-
ties the Secretary decides are appropriate
227
to make efficient, long-term project man-
agement easier. 
‘‘(ii) 
PERIOD
COVERED.—A 
work 
agreement under this paragraph shall 
cover the period of time the Secretary con-
siders appropriate. The period may extend 
beyond the period of current authorization. 
‘‘(iii) INTEREST AND OTHER FINANC-
ING COSTS.—Interest and other financing 
costs of efficiently carrying out the work 
agreement within a reasonable time are a 
cost of carrying out the agreement, except 
that eligible costs may not be more than 
the cost of the most favorable financing 
terms reasonably available for the project 
at the time of borrowing. The applicant 
shall certify, in a way satisfactory to the 
Secretary, that the applicant has shown 
reasonable diligence in seeking the most 
favorable financing terms. 
‘‘(iv) 
FAILURE
TO
CARRY
OUT 
PROJECT.—If an applicant does not carry 
out the project for reasons within the con-
trol of the applicant, the applicant shall 
repay all Government payments made
228
under the work agreement plus reasonable 
interest and penalty charges the Secretary 
establishes in the agreement. 
‘‘(4) LIMITATION ON AMOUNTS.—
‘‘(A) PROGRAMMATIC.—The total esti-
mated amount of future obligations of the Gov-
ernment and contingent commitments to incur 
obligations covered by all outstanding letters of 
intent, full funding grant agreements, and early 
systems work agreements under this subsection 
may be not more than the greater of the 
amount authorized under section 5338(b) for 
new fixed guideway capital projects or an 
amount equivalent to the last 3 fiscal years of 
funding allocated under subsection (m)(1)(B) 
for new fixed guideway capital projects, less an 
amount the Secretary reasonably estimates is 
necessary for grants under this section not cov-
ered by a letter. The total amount covered by 
new letters and contingent commitments in-
cluded in full funding grant agreements and 
early systems work agreements may be not 
more than a limitation specified in law. 
‘‘(B) INCLUSION
OF
CERTAIN
COMMIT-
MENTS.—Future obligations of the Government
229
and contingent commitments made against the 
contingent commitment authority under section 
3032(g)(2) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (106 Stat. 
2125) for the San Francisco BART to the Air-
port project for fiscal years 2002, 2003, 2004, 
2005, and 2006 shall be charged against sec-
tion 3032(g)(2) of that Act. 
‘‘(C) APPROPRIATION REQUIRED.—An ob-
ligation may be made under this subsection only 
when amounts are appropriated for the obliga-
tion. 
‘‘(5) NOTIFICATION OF CONGRESS.—At least 60 
days before issuing a letter of intent or entering into 
a full funding grant agreement under this sub-
section, the Secretary shall notify, in writing, the 
Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
of the proposed letter or agreement. The Secretary 
shall include with the notification a copy of the pro-
posed letter or agreement as well as the evaluations 
and ratings for the project. 
‘‘(g) GOVERNMENT’S
SHARE
OF
NET
PROJECT 
COST.—
230
‘‘(1) FEDERAL SHARE.—Based on engineering 
studies, studies of economic feasibility, and informa-
tion on the expected use of equipment or facilities, 
the Secretary shall estimate the net project cost. A 
grant for the project shall be for 80 percent of the 
net capital project cost, unless the grant recipient 
requests a lower grant percentage. 
‘‘(2) REMAINDER OF NET PROJECT COST.—The 
remainder of net project costs shall be provided from 
an undistributed cash surplus, a replacement or de-
preciation cash fund or reserve, or new capital. 
‘‘(3) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this section, including paragraph 
(1) and subsections (c)(3)(D)(iv) and (c)(4), shall be 
construed as authorizing the Secretary to require a 
non-Federal financial commitment for a project that 
is more than 20 percent of the net capital project 
cost. 
‘‘(4) SPECIAL
RULE
FOR
ROLLING
STOCK 
COSTS.—In addition to amounts allowed pursuant to 
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts of the 
Government were used and that the purchase was
231
made for use on the extension. A refund or reduc-
tion of the remainder may be made only if a refund 
of a proportional amount of the grant of the Govern-
ment is made at the same time. 
‘‘(5) LIMITATION
ON
APPLICABILITY.—This 
subsection does not apply to projects for which the 
Secretary has entered into a full funding grant 
agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2004. 
‘‘(h) FISCAL CAPACITY CONSIDERATIONS.—If the 
Secretary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (g), the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
‘‘(i) REPORTS ON NEW STARTS.—
‘‘(1) ANNUAL
DOT
REPORT.—Not later than 
the first Monday in February of each year, the Sec-
retary shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report that includes—
‘‘(A) a proposal of allocations of amounts 
to be available to finance grants for new fixed
232
guideway capital projects among applicants for 
these amounts; 
‘‘(B) evaluations and ratings, as required 
under subsection (c), for each such project that 
is authorized by the Federal Public Transpor-
tation Act of 2004; and 
‘‘(C) recommendations of such projects for 
funding based on the evaluations and ratings 
and on existing commitments and anticipated 
funding levels for the next 3 fiscal years and for 
the next 10 fiscal years based on information 
currently available to the Secretary. 
‘‘(2) ANNUAL GAO REVIEW.—The Comptroller 
General shall—
‘‘(A) conduct an annual review of—
‘‘(i) the processes and procedures for 
evaluating, rating, and recommending new 
fixed guideway capital projects; and 
‘‘(ii) the Secretary’s implementation 
of such processes and procedures; and 
‘‘(B) report to Congress on the results of 
such review by May 31 of each year. 
‘‘(j) UNDERTAKING PROJECTS IN ADVANCE.—
‘‘(1) IN GENERAL.—The Secretary may pay the 
Government’s share of the net capital project cost to
233
a State or local governmental authority that carries 
out any part of a project described in this section 
without the aid of amounts of the Government and 
according to all applicable procedures and require-
ments if—
‘‘(A) the State or local governmental au-
thority applies for the payment; 
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under this section. 
‘‘(2) FINANCING COSTS.—
‘‘(A) IN GENERAL.—The cost of carrying 
out part of a project includes the amount of in-
terest earned and payable on bonds issued by 
the State or local governmental authority to the 
extent proceeds of the bonds are expended in 
carrying out the part. 
‘‘(B) LIMITATION ON AMOUNT OF INTER-
EST.—The amount of interest under this para-
graph may not be more than the most favorable 
interest terms reasonably available for the 
project at the time of borrowing.
234
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financial 
terms. 
‘‘(3) CAPITAL
PROJECT
COST
INDICES.—The 
Secretary shall consider changes in capital project 
cost indices when determining the estimated cost 
under paragraph (2). 
‘‘(k) BUS AND BUS FACILITY GRANTS.—In making 
grants under subsection (m)(1)(C), the Secretary shall 
consider the age of buses, bus fleets, related equipment, 
and bus-related facilities. 
‘‘(l) AVAILABILITY OF AMOUNTS.—An amount made 
available or appropriated under section 5338(b) for re-
placement, rehabilitation, and purchase of buses and re-
lated equipment and construction of bus-related facilities 
or for new fixed guideway capital projects shall remain 
available for 3 fiscal years, including the fiscal year in 
which the amount is made available or appropriated. Any 
of such amounts that are unobligated at the end of the 
3-fiscal-year period shall be deobligated and may be used 
by the Secretary for any purpose under this section. 
‘‘(m) ALLOCATING AMOUNTS.—
235
‘‘(1) IN GENERAL.—After the allocation under 
section 5338(b)(2)(C) for a fiscal year and subject 
to paragraph (4), the remainder of the amounts 
made available by or appropriated under section 
5338(b) for grants under this section for such fiscal 
year shall be allocated as follows: 
‘‘(A) 40 percent for fixed guideway mod-
ernization; 
‘‘(B) 40 percent for major new fixed guide-
way capital projects; and 
‘‘(C) 20 percent to replace, rehabilitate, 
and purchase buses and related equipment and 
to construct bus-related facilities. 
‘‘(2) LIMITATION
ON
AMOUNTS.—Not more 
than 8 percent of the amounts made available in 
each fiscal year by paragraph (l)(B) shall be avail-
able for alternatives analysis and preliminary engi-
neering. 
‘‘(3) FUNDING FOR FERRY BOAT SYSTEMS.—Of 
the amounts made available under paragraph (1)(B), 
$10,400,000 shall be available in each of fiscal years 
2004 through 2009 for new fixed guideway capital 
projects in Alaska or Hawaii that are for ferry boats 
or ferry terminal facilities or that are for approaches 
to ferry terminal facilities.
236
‘‘(4) SOURCES OF FUNDING.—All amounts allo-
cated for fixed guideway modernization and all 
amounts allocated to replace, rehabilitate, and pur-
chase buses and related equipment and to construct 
bus-related facilities under paragraph (1) shall be 
derived from the Mass Transit Account of the High-
way Trust Fund. All amounts allocated for new 
fixed guideway capital projects under paragraph (1) 
shall be derived from the general fund of the Treas-
ury. 
‘‘(n) NEW FIXED GUIDEWAY CAPITAL PROJECT DE-
FINED.—In this section, the term ‘new fixed guideway 
capital project’ means a minimum operable segment of a 
capital project for a new fixed guideway system or exten-
sion to an existing fixed guideway system.’’. 
(e) CONFORMING AMENDMENTS.—
(1) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5309 and inserting the following:
‘‘5309. Capital investment grants.’’.
(2) SECTION 5328.—Section 5328(a) is amend-
ed—
(A) in paragraph (2) by striking ‘‘5309(e)’’ 
and inserting ‘‘5309(c)’’; and
237
(B) in paragraph (4) by striking ‘‘under 
section 5309(o)(1)’’ and inserting ‘‘under sec-
tion 5309(i)(1)’’. 
SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5310. Formula grants for special needs of elderly 
individuals and individuals with disabil-
ities’’; 
(2) by striking subsections (a) through (g) and 
inserting the following: 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants to States and local governmental authorities 
under this section for public transportation capital 
projects, and operating costs associated with public 
transportation capital projects, planned, designed, 
and carried out to meet the special needs of elderly 
individuals and individuals with disabilities. 
‘‘(2) SUBRECIPIENTS.—A State that receives a 
grant under this section may allocate the amounts of 
the grant to—
238
‘‘(A) a private nonprofit organization if the 
public transportation service provided under 
paragraph (1) is unavailable, insufficient, or in-
appropriate; or 
‘‘(B) a governmental authority that—
‘‘(i) is approved by the State to co-
ordinate services for elderly individuals and 
individuals with disabilities; or 
‘‘(ii) certifies that there are not any 
nonprofit organizations readily available in 
the area to provide the services described 
under paragraph (1). 
‘‘(3) 
ACQUIRING
PUBLIC
TRANSPORTATION 
SERVICES.—A public transportation capital project 
under this section may include acquisition by a re-
cipient of public transportation services as an eligi-
ble capital expense. 
‘‘(4) ADMINISTRATIVE EXPENSES.—A State or 
local governmental authority may use not more than 
10 percent of the amounts apportioned to the State 
under this section to administer, plan, and provide 
technical assistance for a project funded under this 
section. 
‘‘(b) APPORTIONMENT AND TRANSFERS.—
239
‘‘(1) APPORTIONMENT
FORMULA.—The Sec-
retary shall apportion amounts made available to 
carry out this section under a formula the Secretary 
administers that considers the number of elderly in-
dividuals and individuals with disabilities in each 
State. 
‘‘(2) TRANSFERS.—Any State’s apportionment 
remaining available for obligation at the beginning 
of the 90-day period before the end of the period of 
availability of the apportionment is available to the 
State for transfer to supplement amounts appor-
tioned to the State under section 5311(c) or 
5336(a)(1), or both. Any funds transferred pursuant 
to this paragraph shall be made available only for el-
igible projects as described in this section. 
‘‘(c) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
age shall be increased in accordance with such sec-
tion. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not
240
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to all requirements of a grant under
241
section 5307. A grant to a subrecipient under this 
section shall be subject to such requirements to the 
extent the Secretary considers appropriate. 
‘‘(2) COORDINATION
WITH
NONPROFIT
PRO-
VIDERS.—A recipient that transfers funds to an ap-
portionment under section 5336(a)(1) pursuant to 
subsection (b)(2) shall certify that the project for 
which the funds are requested under this section has 
been coordinated with nonprofit providers of serv-
ices. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify 
that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, and nonprofit transportation and 
human services providers and participation by 
the public. 
‘‘(4) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis.
242
‘‘(e) STATE PROGRAM.—
‘‘(1) IN GENERAL.—Amounts made available to 
carry out this section may be used for transportation 
projects to assist in providing transportation services 
for elderly individuals and individuals with disabil-
ities that are included in a State program of 
projects. 
‘‘(2) SUBMISSION AND APPROVAL.—A program 
shall be submitted annually to the Secretary for ap-
proval and shall contain an assurance that the pro-
gram provides for maximum feasible coordination of 
transportation services assisted under this section 
with transportation services assisted by other Gov-
ernment sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authori-
ties to improve transportation services designed to meet 
the special needs of elderly individuals and individuals 
with disabilities.’’; and 
(3) by redesignating subsections (h) through (j) 
as subsections (g) through (i), respectively. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5310 and inserting the following:
‘‘5310. Formula grants for special needs of elderly individuals and individuals 
with disabilities.’’.
243
SEC. 3012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State that receives a Federal transit program grant 
directly from the Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a Federal transit pro-
gram grant indirectly through a recipient.’’. 
(b) GENERAL
AUTHORITY.—Section 5311(b) is 
amended to read as follows: 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—Except as provided in para-
graph (2), the Secretary may make grants to other 
than urbanized areas under this section for the fol-
lowing: 
‘‘(A) Public transportation capital projects. 
‘‘(B) Operating costs of equipment and fa-
cilities for use in public transportation.
244
‘‘(C) Acquisition of public transportation 
services, including service agreements with pri-
vate providers of public transportation services. 
‘‘(2) STATE PROGRAM.—
‘‘(A) IN GENERAL.—Amounts made avail-
able to carry out this section shall be used for 
projects included in a State program for public 
transportation projects, including service agree-
ments with private providers of public transpor-
tation. 
‘‘(B) SUBMISSION.—The program shall be 
submitted annually to the Secretary for ap-
proval. 
‘‘(C) APPROVAL.—The Secretary may ap-
prove the program only if the Secretary finds 
that the program provides a fair distribution of 
amounts in the State, including Indian reserva-
tions, and the maximum feasible coordination of 
public transportation service assisted under this 
section with transportation service assisted by 
other Federal sources. 
‘‘(3) RURAL
TRANSPORTATION
ASSISTANCE 
PROGRAM.—
245
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS AND CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made 
available to carry out this section to make 
grants and contracts for transportation re-
search, technical assistance, training, and re-
lated support services in other than urbanized 
areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.—
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by 
the Secretary to carry out projects of a national 
scope, with the remaining balance provided to 
the States.’’. 
(c) APPORTIONMENTS.—Section 5311(c) is amended 
to read as follows: 
‘‘(c) APPORTIONMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall appor-
tion amounts made available to carry out this sec-
tion among the States in the ratio that—
‘‘(A) the population of other than urban-
ized areas in each State, as shown by the most
246
recent Government decennial census of popu-
lation; bears to 
‘‘(B) the population of all other than ur-
banized areas in the United States, as shown by 
that census. 
‘‘(2) AVAILABILITY.—The amount apportioned 
to a State under this subsection may be obligated by 
the State for 2 fiscal years after the fiscal year in 
which the amount is apportioned. An amount that is 
not obligated at the end of that period shall be re-
apportioned among the States for the next fiscal 
year.’’. 
(d) USE
FOR ADMINISTRATION, PLANNING, AND 
TECHNICAL ASSISTANCE.—Section 5311(e) is amended—
(1) in the subsection heading by inserting ‘‘, 
PLANNING,’’ after ‘‘ADMINISTRATION’’; 
(2) by striking ‘‘(1) The Secretary’’ and insert-
ing ‘‘The Secretary’’; 
(3) by striking paragraph (2); and 
(4) by striking ‘‘recipient’’ and inserting ‘‘sub-
recipient’’. 
(e) INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended—
(1) in paragraph (1) by striking ‘‘after Sep-
tember 30, 1993,’’; and
247
(2) in paragraph (2) by striking ‘‘A State’’ and 
inserting ‘‘After consultation with affected intercity 
bus service providers, a State’’. 
(f) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5311(g) is amended to read as follows: 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
age shall be increased in accordance with such sec-
tion. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and
248
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A State carrying out a program of operating 
assistance under this section may not limit the level 
or extent of use of the Government grant for the 
payment of operating expenses.’’. 
(g) RELATIONSHIP TO OTHER LAWS.—Section 5311 
is amended—
(1) by striking subsection (h); and 
(2) by redesignating subsections (i) and (j) as 
subsections (h) and (i), respectively. 
(h) CORRECTION TO CHAPTER ANALYSIS.—The anal-
ysis for chapter 53 is amended by striking the item relat-
ing to section 5311 and inserting the following:
‘‘5311. Formula grants for other than urbanized areas.’’.
249
SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended—
(1) in subsection (a)—
(A) by striking the first parenthetical 
phrase; 
(B) by striking ‘‘or contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(C) by striking ‘‘help reduce urban trans-
portation needs, improve mass transportation 
service,’’ and inserting ‘‘improve transportation 
service’’; 
(D) by striking ‘‘urban’’ each place it ap-
pears; and 
(E) 
by 
striking 
‘‘and 
demonstration 
projects’’ and inserting ‘‘, demonstration or de-
ployment projects, or evaluation of technology 
of national significance’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
subsections (b) and (c), respectively; 
(4) in subsection (b)(2) (as so redesignated) by 
striking ‘‘other agreements’’ and inserting ‘‘other 
transactions’’; and
250
(5) in subsection (c)(2) (as so redesignated) by 
striking ‘‘public and’’ and inserting ‘‘public or’’. 
(b) CONFORMING AMENDMENTS.—
(1) 
SECTION
HEADING.—Section 
5312 
is 
amended by striking the section heading and insert-
ing the following: 
‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5312 and inserting the following:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 3014. COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) in subsection (a) by striking ‘‘(1) The 
amounts made available under paragraphs (1) and 
(2)(C)(ii) of section 5338(d) of this title’’ and insert-
ing ‘‘The amounts made available under paragraphs 
(1) and (2)(B)(i) of section 5338(d)’’; 
(2) by striking subsection (b); 
(3) in subsection (a)(2) by striking ‘‘(2) The’’ 
and inserting ‘‘(b) FEDERAL ASSISTANCE.—The’’; 
and 
(4) in subsection (c) by striking ‘‘subsection (a) 
of’’. 
(b) CONFORMING AMENDMENTS.—
251
(1) IN GENERAL.—Section 5313 is amended by 
striking the section heading and inserting the fol-
lowing: 
‘‘§ 5313. Cooperative research program’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5313 and inserting the following:
‘‘5313. Cooperative research program.’’.
SEC. 3015. NATIONAL RESEARCH AND TECHNOLOGY PRO-
GRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5314. National research and technology programs’’; 
(2) in subsection (a)(1)—
(A) by striking ‘‘subsections (d) and (h)(7) 
of section 5338 of this title’’ and inserting ‘‘sec-
tion 5338(d)’’; 
(B) by striking ‘‘and contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(C) by striking ‘‘5303–5306,’’; and 
(D) by striking ‘‘5317,’’; 
(3) in subsection (a)(2) by striking ‘‘Of the 
amounts’’ and all that follows through ‘‘$3,000,000 
to’’ and inserting ‘‘The Secretary shall’’;
252
(4) by striking subsection (a)(4)(B); 
(5) by redesignating subsection (a)(4)(C) as 
subsection (a)(4)(B); and 
(6) in subsection (b) by striking ‘‘or contract’’ 
and all that follows through ‘‘section,’’ and inserting 
‘‘, contract, cooperative agreement, or other trans-
action under subsection (a) or section 5312,’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5314 and inserting the following:
‘‘5314. National research and technology programs.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE. 
Section 5315 is amended—
(1) in subsection (a) by striking ‘‘public mass 
transportation’’ and inserting ‘‘public transpor-
tation’’; and 
(2) in subsection (d) by striking ‘‘mass’’ each 
place it appears. 
SEC. 3017. JOB ACCESS AND REVERSE COMMUTE FORMULA 
GRANTS. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5315 the following: 
‘‘§ 5316. Job access and reverse commute formula 
grants 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply:
253
‘‘(1) ACCESS TO JOBS PROJECT.—The term ‘ac-
cess to jobs project’ means a project relating to the 
development and maintenance of transportation 
services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and 
activities related to their employment, including—
‘‘(A) transportation projects to finance 
planning, capital, and operating costs of pro-
viding access to jobs under this chapter; 
‘‘(B) promoting public transportation by 
low-income workers, including the use of public 
transportation by workers with nontraditional 
work schedules; 
‘‘(C) promoting the use of transit vouchers 
for welfare recipients and eligible low-income in-
dividuals; and 
‘‘(D) promoting the use of employer-pro-
vided transportation, including the transit pass 
benefit program under section 132 of the Inter-
nal Revenue Code of 1986. 
‘‘(2) ELIGIBLE LOW-INCOME INDIVIDUAL.—The 
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in 
section 673(2) of the Community Services Block
254
Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by that section) for a family of the size 
involved. 
‘‘(3) RECIPIENT.—The term ‘recipient’ means a 
designated 
recipient 
(as 
defined 
in 
section 
5307(a)(2)) or State that receives a grant under this 
section directly. 
‘‘(4) REVERSE COMMUTE PROJECT.—The term 
‘reverse commute project’ means a public transpor-
tation project designed to transport residents of ur-
banized areas and other than urbanized areas to 
suburban employment opportunities, including any 
projects to—
‘‘(A) subsidize the costs associated with 
adding reverse commute bus, train, carpool, van 
routes, or service from urbanized areas and 
other than urbanized areas to suburban work-
places; 
‘‘(B) subsidize the purchase or lease by a 
nonprofit organization or public agency of a van 
or bus dedicated to shuttling employees from 
their residences to a suburban workplace; or 
‘‘(C) otherwise facilitate the provision of 
public transportation services to suburban em-
ployment opportunities.
255
‘‘(5) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received as-
sistance under a State or tribal program funded 
under part A of title IV of the Social Security Act 
at any time during the 3-year period before the date 
on which the applicant applies for a grant under this 
section. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants under this section to a recipient for access to 
jobs and reverse commute projects carried out by the 
recipient or a subrecipient. 
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient 
may use not more than 10 percent of the amounts 
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for 
a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
256
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
fined in section 5307(a)(2)) for urbanized areas 
with a population of 200,000 or more in the 
ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in each 
such urbanized area; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in all 
such urbanized areas. 
‘‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in urban-
ized areas with a population of less than 
200,000 in each State; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in urban-
ized areas with a population of less than 
200,000 in all States.
257
‘‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in each State; bears 
to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in all States. 
‘‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)—
‘‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or 
more; 
‘‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and 
‘‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving other 
than urbanized areas. 
‘‘(3) EXCEPTIONS.—A State may use funds ap-
portioned under paragraphs (1)(B) and (1)(C)—
258
‘‘(A) for projects serving areas other than 
the area specified in paragraph (2)(B) or 
(2)(C), as the case may be, if the Governor of 
the State certifies that all of the objectives of 
this section are being met in the specified area; 
or 
‘‘(B) for projects anywhere in the State if 
the State has established a statewide program 
for meeting the objectives of this section. 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (c)(1)(B) or 
(c)(1)(C) shall conduct a statewide solicitation for 
applications for grants to the recipient and sub-
recipients under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
259
cipient an application in the form and in accordance 
with such requirements as the recipient shall estab-
lish. 
‘‘(4) GRANT
AWARDS.—The recipient shall 
award grants under paragraphs (1) and (2) on a 
competitive basis. 
‘‘(e) TRANSFERS.—
‘‘(1) IN GENERAL.—A State may transfer any 
funds apportioned to it under subparagraph (B) or 
(C) of subsection (c)(1), or both, to an apportion-
ment under section 5311(c) or 5336, or both. 
‘‘(2) LIMITED
TO
ELIGIBLE
PROJECTS.—Any 
apportionment transferred under this subsection 
shall be made available only for eligible job access 
and reverse commute projects as described in this 
section. 
‘‘(3) CONSULTATION.—A State may make a 
transfer of an amount under this subsection only 
after consulting with responsible local officials and 
publicly owned operators of public transportation in 
each area for which the amount originally was 
awarded under this section. 
‘‘(f) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the requirements of section 5307.
260
‘‘(2) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
to the Secretary that allocations of the grant to sub-
recipients are distributed on a fair and equitable 
basis. 
‘‘(g) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments 
and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A State 
that transfers funds to an apportionment under sec-
tion 5336 pursuant to subsection (e) shall certify to 
the Secretary that any project for which the funds 
are requested under this section has been coordi-
nated with nonprofit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify to 
the Secretary that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, and nonprofit transportation and
261
human services providers and participation by 
the public. 
‘‘(h) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section may not exceed 80 percent 
of the net capital costs of the project, as determined 
by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation.
262
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the 
level or extent of use of the Government grant for 
the payment of operating expenses. 
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER
GENERAL.—Beginning 1 
year after the date of enactment of the Federal Pub-
lic Transportation Act of 2004, and every 2 years 
thereafter, the Comptroller General shall—
‘‘(A) conduct a study to evaluate the grant 
program authorized by this section; and 
‘‘(B) transmit to the Committee on Trans-
portation and Infrastructure of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
a report describing the results of the study 
under subparagraph (A).
263
‘‘(2) DEPARTMENT OF TRANSPORTATION.—Not 
later than 3 years after the date of enactment of 
Federal Public Transportation Act of 2004, the Sec-
retary shall—
‘‘(A) conduct a study to evaluate the effec-
tiveness of the grant program authorized by 
this section and the effectiveness of recipients 
making grants to subrecipients under this sec-
tion; and 
‘‘(B) transmit to the committees referred 
to in paragraph (1)(B) a report describing the 
results of the study under subparagraph (A).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5315 the following:
‘‘5316. Job access and reverse commute formula grants.’’.
(c) REPEAL.—Section 3037 of the Transportation 
Equity Act for the 21st Century (49 U.S.C. 5309 note; 
112 Stat. 387) is repealed. 
SEC. 3018. NEW FREEDOM PROGRAM. 
(a) IN GENERAL.—Chapter 53 is further amended by 
inserting after section 5316 the following: 
‘‘§ 5317. New freedom program 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply:
264
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
designated 
recipient 
(as 
defined 
in 
section 
5307(a)(2)) or State that receives a grant under this 
section directly. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants to under this section to a recipient for new 
public transportation services and public transpor-
tation alternatives beyond those required by the 
Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) that assist individuals with disabil-
ities with transportation, including transportation to 
and from jobs and employment support services. 
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient 
may use not more than 10 percent of the amounts 
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for 
a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
265
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
fined in section 5307(a)(2)) for urbanized areas 
with a population of 200,000 or more in the 
ratio that—
‘‘(i) the number of individuals with 
disabilities in each such urbanized area; 
bears to 
‘‘(ii) the number of individuals with 
disabilities in all such urbanized areas. 
‘‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in each State; 
bears to 
‘‘(ii) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in all States. 
‘‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
266
‘‘(i) the number of individuals with 
disabilities in other than urbanized areas 
in each State; bears to 
‘‘(ii) the number of individuals with 
disabilities in other than urbanized areas 
in all States. 
‘‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)—
‘‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or 
more; 
‘‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and 
‘‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving other 
than urbanized areas. 
‘‘(3) TRANSFERS.—
‘‘(A) IN GENERAL.—A State may transfer 
any funds apportioned to it under subparagraph 
(B) or (C) of subsection (c)(1), or both, to an 
apportionment under section 5311(c) or 5336, 
or both.
267
‘‘(B) LIMITED TO ELIGIBLE PROJECTS.—
Any funds transferred pursuant to this para-
graph shall be made available only for eligible 
projects selected under this section. 
‘‘(C) CONSULTATION.—A State may make 
a transfer of an amount under this subsection 
only after consulting with responsible local offi-
cials and publicly owned operators of public 
transportation in each area for which the 
amount originally was awarded under this sec-
tion. 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (c)(1)(B) or 
(c)(1)(C) shall conduct a statewide solicitation for 
applications for grants to the recipient and sub-
recipients under this section.
268
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
cipient an application in the form and in accordance 
with such requirements as the recipient shall estab-
lish. 
‘‘(4) GRANT
AWARDS.—The recipient shall 
award grants under paragraphs (1) and (2) on a 
competitive basis. 
‘‘(e) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall be subject 
to all the requirements of section 5307. 
‘‘(2) 
EMPLOYEE
PROTECTIVE
ARRANGE-
MENTS.—Section 5333(b) shall apply to grants 
under this section, except that the Secretary of 
Labor shall utilize, for urbanized areas with a popu-
lation of less than 200,000 and for other than ur-
banized areas, a special warranty described in sec-
tion 215.7 of title 29, Code of Federal Regulations, 
that provides a fair and equitable arrangement to 
protect the interest of employees. 
‘‘(3) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify
269
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis. 
‘‘(f) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments 
and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A recipi-
ent that transfers funds to an apportionment under 
section 5336 pursuant to subsection (c)(2) shall cer-
tify that the project for which the funds are re-
quested under this section has been coordinated with 
nonprofit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify 
that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, and nonprofit transportation and 
human services providers and participation by 
the public. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
270
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section may not exceed 80 percent 
of the net capital costs of the project, as determined 
by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42
271
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the 
level or extent of use of the Government grant for 
the payment of operating expenses.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5316 the following:
‘‘5317. New freedom program.’’.
SEC. 3019. BUS TESTING FACILITY. 
(a) IN GENERAL.—Section 5318 is amended—
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) FACILITY.—The Secretary of Transportation 
shall maintain one facility for testing a new bus model 
for maintainability, reliability, safety, performance (in-
cluding braking performance), structural integrity, fuel 
economy, emissions, and noise.’’; 
(2) in subsection (d) by striking ‘‘under section 
5309(m)(1)(C) of this title’’ and inserting ‘‘to carry 
out this section’’; and 
(3) by striking subsection (e) and inserting the 
following:
272
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be 
obligated or expended to acquire a new bus model only 
if a bus of that model has been tested at the facility main-
tained by the Secretary under subsection (a).’’. 
(b) CONFORMING AMENDMENT.—Section 5323(c) is 
repealed. 
SEC. 3020. BICYCLE FACILITIES. 
The first sentence of section 5319 is amended—
(1) by striking ‘‘5309(h),’’ and inserting 
‘‘5309(g),’’; and 
(2) by striking ‘‘and 5311’’ and inserting 
‘‘5311, and 5320’’. 
SEC. 3021. TRANSIT IN THE PARKS PILOT PROGRAM. 
(a) IN GENERAL.—Section 5320 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 5320. Transit in the parks pilot program 
‘‘(a) PUBLIC TRANSPORTATION DEFINED.—In this 
section, the term ‘public transportation’ means general or 
special transportation to the public by a conveyance that 
is publicly or privately owned. Such term does not include 
schoolbus or charter transportation but does include sight-
seeing transportation. 
‘‘(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of the Federal Public Transpor-
273
tation Act of 2004, the Secretary of Transportation and 
the Secretary of the Interior shall enter into a memo-
randum of understanding to establish a transit in the 
parks pilot program in accordance with the requirements 
of this section. 
‘‘(c) PURPOSE.—The purpose of the pilot program 
shall be to encourage and promote the development of 
transportation systems described in section 5301(a) within 
units of the National Park System to improve visitor mo-
bility and enjoyment (including visitors with disabilities), 
reduce pollution and congestion, and enhance resource 
protection through the use of public transportation. 
‘‘(d) ADMINISTRATION OF PROGRAM.—The program 
shall be administered by the Secretary of Transportation, 
in consultation with the Secretary of the Interior. 
‘‘(e) MEMORANDUM OF UNDERSTANDING.—
‘‘(1) PLANNING.—The memorandum of under-
standing under subsection (b) shall include transpor-
tation planning procedures that are consistent with 
the metropolitan and statewide planning processes 
required under chapter 52. 
‘‘(2) PROGRAMS.—The memorandum of under-
standing shall include descriptions of programs and 
activities eligible for assistance under the pilot pro-
gram.
274
‘‘(3) EXCEPTIONS.—The memorandum of un-
derstanding shall limit or modify the applicability of 
the provisions referred to in subsection (f) to the ex-
tent necessary to carry out the objectives of this sec-
tion and to be compatible with the laws and regula-
tions governing units of the National Park System. 
‘‘(f) ELIGIBLE USE OF FUNDS.—Except as provided 
under subsection (e)(3), the Secretary may provide funds 
made available to carry out this section to the Secretary 
of the Interior under interagency agreements for the fol-
lowing purposes: 
‘‘(1) PLANNING, ENGINEERING, DESIGN, AND 
EVALUATION.—Planning, engineering, design, and 
evaluation of public transportation projects in units 
of the National Park System, and for technical stud-
ies, in accordance with section 5305(b)(2). 
‘‘(2) 
PUBLIC
TRANSPORTATION
CAPITAL 
PROJECTS.—Public transportation capital projects 
(as defined in section 5302(a)(1)) for such units in 
accordance with all the terms and conditions to 
which a grant is made under subsections (a), (b), 
(c), and (d) of section 5307 and such other terms 
and conditions as are determined by the Secretary. 
The Secretary of the Interior shall act as the des-
275
ignated recipient for the purposes of subsection 
(a)(2) of section 5307. 
‘‘(3) OPERATING
COSTS.—Operating costs of 
equipment and facilities used in public transpor-
tation for such units. 
‘‘(g) GOVERNMENT SHARE OF COSTS.—
‘‘(1) CAPITAL
PROJECTS.—The Government 
share of the cost of any capital project or activity 
under this section shall be 100 percent of the costs 
of the project, as determined by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(h) SAVINGS CLAUSE.—Nothing in this section shall 
be construed as superseding, amending, modifying, or re-
pealing any provision of law applicable to units of the Na-
tional Park System.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is further amended by inserting after the 
item relating to section 5319 the following:
‘‘5320. Transit in the parks pilot program.’’.
SEC. 3022. HUMAN RESOURCE PROGRAMS. 
Section 5322 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘The Secretary’’; and
276
(2) by adding at the end the following: 
‘‘(b) GRANTS
TO
HIGHER
LEARNING
INSTITU-
TIONS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to nonprofit institutions of 
higher learning—
‘‘(A) to conduct research and investiga-
tions into the theoretical or practical problems 
of public transportation; and 
‘‘(B) to train individuals to conduct fur-
ther research or obtain employment in an orga-
nization that plans, builds, operates, or man-
ages a public transportation system. 
‘‘(2) RESEARCH
AND
INVESTIGATIONS.—Re-
search and investigations under this subsection in-
clude—
‘‘(A) the design and use of public transpor-
tation systems and public roads and highways; 
‘‘(B) the interrelationship between various 
modes of urban, suburban, rural, and intercity 
transportation; 
‘‘(C) the role of transportation planning in 
overall urban planning; 
‘‘(D) public preferences in transportation;
277
‘‘(E) the economic allocation of transpor-
tation resources; and 
‘‘(F) the legal, financial, engineering, and 
esthetic aspects of public transportation. 
‘‘(3) PREFERENCE.—When making a grant 
under this subsection, the Secretary shall give pref-
erence to an institution that brings together knowl-
edge and expertise in the various social science and 
technical disciplines related to public transportation 
problems. 
‘‘(c) FELLOWSHIPS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to States, local govern-
mental authorities, and operators of public transpor-
tation systems to provide fellowships to train per-
sonnel employed in managerial, technical, and pro-
fessional positions in the public transportation field. 
‘‘(2) TERMS.—
‘‘(A) PERIOD OF TRAINING.—A fellowship 
under this subsection may be for not more than 
one year of training in an institution that offers 
a program applicable to the public transpor-
tation industry. 
‘‘(B) SELECTION
OF
INDIVIDUALS.—The 
recipient of the grant shall select an individual
278
on the basis of demonstrated ability and for the 
contribution the individual reasonably can be 
expected to make to an efficient public trans-
portation operation. 
‘‘(C) AMOUNT.—A grant for a fellowship 
may not be more than the lesser of $65,000 or 
75 percent of—
‘‘(i) tuition and other charges to the 
fellowship recipient; 
‘‘(ii) additional costs incurred by the 
training institution and billed to the grant 
recipient; and 
‘‘(iii) the regular salary of the fellow-
ship recipient for the period of the fellow-
ship to the extent the salary is actually 
paid or reimbursed by the grant recipi-
ent.’’. 
SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE. 
(a) INTERESTS IN PROPERTY.—Section 5323(a)(1) is 
amended—
(1) in the matter preceding subparagraph (A)—
(A) by striking ‘‘private mass transpor-
tation company’’ each place it appears and in-
serting ‘‘private company engaged in public 
transportation’’;
279
(B) by striking ‘‘mass transportation 
equipment or a mass transportation facility’’ 
and inserting ‘‘a public transportation facility 
or equipment’’; and 
(C) by striking ‘‘mass transportation com-
pany’’ and inserting ‘‘public transportation 
company’’; and 
(2) in subparagraph (B) by striking ‘‘private 
mass transportation companies’’ and inserting ‘‘pri-
vate companies engaged in public transportation’’. 
(b) 
NOTICE
AND
PUBLIC
HEARING.—Section 
5323(b) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1) An application’’ and 
inserting the following: 
‘‘(1) APPLICATIONS.—An application’’; 
(B) in the matter preceding subparagraph 
(A) by striking ‘‘or loan’’; and 
(C) by moving subparagraphs (A) through 
(D) 2 ems to the right; 
(2) in paragraph (2) by striking ‘‘(2) Notice of’’ 
and inserting the following: 
‘‘(2) NOTICE.—Notice of’’; and 
(3) by adding at the end the following:
280
‘‘(3) ENVIRONMENTAL RECORD.—An applicant 
shall include in the environmental record for a 
project under this chapter evidence that the appli-
cant has complied with the requirements of subpara-
graphs (A) through (D) of paragraph (1).’’. 
(c) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.—Section 5323(d) is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement 
required under paragraph (1), the Secretary 
shall investigate and decide whether a violation 
has occurred. 
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator
281
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of 
the agreement.’’. 
(d) 
BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—Section 5323(e) is amended to read as follows: 
‘‘(e) BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—
‘‘(1) USE AS LOCAL MATCHING FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307 or 5309 may use 
the proceeds from the issuance of revenue bonds as 
part of the local matching funds for a capital 
project. 
‘‘(2) MAINTENANCE
OF
EFFORT.—The Sec-
retary shall approve of the use of the proceeds from 
the issuance of revenue bonds for the remainder of 
the net project cost only if the Secretary finds that 
the aggregate amount of financial support for public 
transportation in the urbanized area provided by the 
State and affected local governmental authorities 
during the next 3 fiscal years, as programmed in the 
State transportation improvement program under 
chapter 52 is not less than the aggregate amount 
provided by the State and affected local govern-
282
mental authorities in the urbanized area during the 
preceding 3 fiscal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that recipient 
established pursuant to section 5302(a)(1)(K) from 
amounts made available to the recipient under sec-
tion 5307 or 5309, or both; except that such reim-
bursement in a fiscal year may not exceed 10 per-
cent of the amounts made available to the recipient 
under section 5307 in such fiscal year.’’. 
(e) SCHOOLBUS TRANSPORTATION.—Section 5323(f) 
is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; 
(2) in paragraph (1) by moving subparagraphs 
(A), (B), and (C) 2 ems to the right; and 
(3) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—If the Secretary finds that 
an applicant, governmental authority, or publicly 
owned operator has violated the agreement required 
under paragraph (1), the Secretary shall bar a re-
cipient or an operator from receiving Federal transit
283
assistance in an amount the Secretary considers ap-
propriate.’’. 
(f) BUYING BUSES UNDER OTHER LAWS.—Section 
5323(g) is amended by striking ‘‘103(e)(4)’’ each place 
it appears and inserting ‘‘133’’. 
(g) BUY AMERICA.—Section 5323(j)(5) is amended 
by striking ‘‘the Intermodal Surface Transportation Effi-
ciency Act of 1991 (Public Law 102–240, 105 Stat. 
1914)’’ and inserting ‘‘the Federal Public Transportation 
Act of 2004’’. 
(h) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5323(l) is amended to read as follows: 
‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001 
of title 18 applies to a certificate, submission, or statement 
provided under this chapter. The Secretary may terminate 
financial assistance under this chapter and seek reim-
bursement directly, or by offsetting amounts, available 
under this chapter, when a false or fraudulent statement 
or related act within the meaning of section 1001 is made 
in connection with a Federal transit program.’’. 
(i) GRANT
REQUIREMENTS.—Section 5323(o) is 
amended by striking ‘‘the Transportation Infrastructure 
Finance and Innovation Act of 1998’’ and inserting 
‘‘chapter 6 (other than section 609) of title 23’’.
284
(j) TRANSFER OF LANDS OR INTERESTS IN LANDS 
OWNED
BY
THE UNITED STATES.—Section 5323 is 
amended by adding at the end the following: 
‘‘(p) TRANSFER OF LANDS OR INTERESTS IN LANDS 
OWNED BY THE UNITED STATES.—
‘‘(1) IDENTIFICATION
OF
LANDS
NECESSARY 
FOR TRANSIT PURPOSES.—If the Secretary deter-
mines that any part of the lands or interests in 
lands owned by the United States and made avail-
able as a result of a military base closure is nec-
essary for public transportation purposes eligible 
under this chapter, including corridor preservation, 
the Secretary shall file with the Secretary of the De-
partment supervising the administration of such 
lands or interests in lands a map showing the por-
tion of such lands or interests in lands which is de-
sired to be transferred for public transportation pur-
poses. 
‘‘(2) DEADLINE FOR CERTIFICATION.—If, with-
in 4 months of such filing, the Secretary of such De-
partment has not certified to the Secretary that the 
proposed transfer of such land is contrary to the 
public interest or inconsistent with the purposes for 
which such land has been reserved or has agreed to 
the transfer under conditions that the Secretary of
285
such Department considers necessary for the ade-
quate protection and utilization of the reserve, then 
such land and materials may be appropriated and 
transferred to a State, or local government, or public 
transportation operator for such purposes and sub-
ject to the conditions so specified. 
‘‘(3) REVERSION.—If at any time such lands 
are no longer needed for public transportation pur-
poses, notice shall be given to the Secretary by the 
State, local government, or public transportation op-
erator that received the land, and such lands shall 
immediately revert to the control of the Secretary of 
the Department from which the land was originally 
transferred.’’. 
SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read 
as follows: 
‘‘§ 5324. Special provisions for capital projects 
‘‘(a) RELOCATION PROGRAM REQUIREMENTS.—Fi-
nancial assistance may be provided under section 5309 
only if the Secretary decides that—
‘‘(1) an adequate relocation program is being 
carried out for families displaced by a project; and 
‘‘(2) an equal number of decent, safe, and sani-
tary dwellings are being, or will be, provided to those
286
families in the same area or in another area gen-
erally not less desirable for public utilities and public 
and commercial facilities, at rents or prices within 
the financial means of those families, and with rea-
sonable access to their places of employment. 
‘‘(b) ADVANCE REAL PROPERTY ACQUISITIONS.—
[Reserved.] 
‘‘(c) CONSIDERATION OF ECONOMIC, SOCIAL, AND 
ENVIRONMENTAL INTERESTS.—
‘‘(1) COOPERATION
AND
CONSULTATION.—In 
carrying out the policy of section 5301(e), the Sec-
retary shall cooperate and consult with the Secre-
taries of the Interior, Health and Human Services, 
and Housing and Urban Development and the Ad-
ministrator of the Environmental Protection Agency 
on each project that may have a substantial impact 
on the environment. 
‘‘(2) PUBLIC
PARTICIPATION
IN
ENVIRON-
MENTAL
REVIEWS.—In performing environmental 
reviews, the Secretary shall review each transcript of 
a hearing submitted under section 5323(b) to estab-
lish that an adequate opportunity to present views 
was given to all parties having a significant eco-
nomic, social, or environmental interest in the