In the Senate of the United States, 
May 19, 2004. 
Resolved, That the bill from the House of Representa-
tives (H.R. 3550) entitled ‘‘An Act to authorize funds for 
Federal-aid highways, highway safety programs, and transit 
programs, and for other purposes.’’, do pass with the fol-
lowing 
AMENDMENT: 
Strike out all after the enacting clause and insert: 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Safe, Accountable, Flexible, and Efficient Transportation 
Equity Act of 2004’’.
HR 3550 EAS 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. General definitions. 
Sec. 3. Definitions for title 23. 
TITLE I—FEDERAL-AID HIGHWAYS 
Subtitle A—Funding 
Sec. 1101. Authorization of appropriations. 
Sec. 1102. Obligation ceiling. 
Sec. 1103. Apportionments. 
Sec. 1104. Equity bonus programs. 
Sec. 1105. Revenue aligned budget authority. 
Subtitle B—New Programs 
Sec. 1201. Infrastructure performance and maintenance program. 
Sec. 1202. Future of surface transportation system. 
Sec. 1203. Freight transportation gateways; freight intermodal connections. 
Sec. 1204. Construction of ferry boats and ferry terminal and maintenance facili-
ties; coordination of ferry construction and maintenance. 
Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway. 
Sec. 1206. State-by-State comparison of highway construction costs. 
Subtitle C—Finance 
Sec. 1301. Federal share. 
Sec. 1302. Transfer of highway and transit funds. 
Sec. 1303. Transportation Infrastructure Finance and Innovation Act Amend-
ments. 
Sec. 1304. Facilitation of international registration plans and international fuel 
tax agreements. 
Sec. 1305. National Commission on Future Revenue Sources to Support the 
Highway Trust Fund and Finance the Needs of the Surface 
Transportation System. 
Sec. 1306. State infrastructure banks. 
Sec. 1307. Public-private partnerships pilot program. 
Sec. 1308. Wagering. 
Subtitle D—Safety 
Sec. 1401. Highway safety improvement program. 
Sec. 1402. Operation lifesaver. 
Sec. 1403. License suspension. 
Sec. 1404. Bus axle weight exemption. 
Sec. 1405. Safe routes to schools program. 
Sec. 1406. Purchases of equipment. 
Sec. 1407. Workzone safety. 
Sec. 1408. Worker injury prevention and free flow of vehicular traffic. 
Sec. 1409. Identity authentication standards. 
Sec. 1410. Open container requirements.
HR 3550 EAS 
Subtitle E—Environmental Planning and Review 
CHAPTER 1—TRANSPORTATION PLANNING 
Sec. 1501. Integration of natural resource concerns into State and metropolitan 
transportation planning. 
Sec. 1502. Consultation between transportation agencies and resource agencies in 
transportation planning. 
Sec. 1503. Integration of natural resource concerns into transportation project 
planning. 
Sec. 1504. Public involvement in transportation planning and projects. 
Sec. 1505. Project mitigation. 
CHAPTER 2—TRANSPORTATION PROJECT DEVELOPMENT PROCESS 
Sec. 1511. Transportation project development process. 
Sec. 1512. Assumption of responsibility for categorical exclusions. 
Sec. 1513. Surface transportation project delivery pilot program. 
Sec. 1514. Parks, recreation areas, wildlife and waterfowl refuges, and historic 
sites. 
Sec. 1515. Regulations. 
CHAPTER 3—MISCELLANEOUS 
Sec. 1521. Critical real property acquisition. 
Sec. 1522. Planning capacity building initiative. 
Subtitle F—Environment 
Sec. 1601. Environmental restoration and pollution abatement; control of 
invasive plant species and establishment of native species. 
Sec. 1602. National scenic byways program. 
Sec. 1603. Recreational trails program. 
Sec. 1604. Exemption of Interstate System. 
Sec. 1605. Standards. 
Sec. 1606. Use of high occupancy vehicle lanes. 
Sec. 1607. Bicycle transportation and pedestrian walkways. 
Sec. 1608. Idling reduction facilities in Interstate rights-of-way. 
Sec. 1609. Toll programs. 
Sec. 1610. Federal reference method. 
Sec. 1611. Addition of particulate matter areas to CMAQ. 
Sec. 1612. Addition to CMAQ-eligible projects. 
Sec. 1613. Improved interagency consultation. 
Sec. 1614. Evaluation and assessment of CMAQ projects. 
Sec. 1615. Synchronized planning and conformity timelines, requirements, and 
horizon. 
Sec. 1616. Transition to new air quality standards. 
Sec. 1617. Reduced barriers to air quality improvements. 
Sec. 1618. Air quality monitoring data influenced by exceptional events. 
Sec. 1619. Conforming amendments. 
Sec. 1620. Highway stormwater discharge mitigation program. 
Sec. 1621. Exemption from certain hazardous materials transportation require-
ments. 
Sec. 1622. Funds for rebuilding fish stocks.
HR 3550 EAS 
Subtitle G—Operations 
Sec. 1701. Transportation systems management and operations. 
Sec. 1702. Real-time system management information program. 
Sec. 1703. Contracting for engineering and design services. 
Sec. 1704. Off-duty time for drivers of commercial vehicles. 
Sec. 1705. Designation of transportation management areas. 
Subtitle H—Federal-Aid Stewardship 
Sec. 1801. Future Interstate System routes. 
Sec. 1802. Stewardship and oversight. 
Sec. 1803. Design-build contracting. 
Sec. 1804. Program efficiencies—finance. 
Sec. 1805. Set-asides for interstate discretionary projects. 
Sec. 1806. Federal lands highways program. 
Sec. 1807. Highway bridge program. 
Sec. 1808. Appalachian development highway system. 
Sec. 1809. Multistate corridor program. 
Sec. 1810. Border planning, operations, technology, and capacity program. 
Sec. 1811. Puerto Rico highway program. 
Sec. 1812. National historic covered bridge preservation. 
Sec. 1813. Transportation and community and system preservation program. 
Sec. 1814. Parking pilot programs. 
Sec. 1815. Interstate oasis program. 
Sec. 1816. Tribal-State road maintenance agreements. 
Sec. 1817. National forest system roads. 
Sec. 1818. Territorial highway program. 
Sec. 1819. Magnetic levitation transportation technology deployment program. 
Sec. 1820. Donations and credits. 
Sec. 1821. Disadvantaged business enterprises. 
Sec. 1822. Emergency relief. 
Sec. 1823. Priority for pedestrian and bicycle facility enhancement projects. 
Sec. 1824. The Delta Regional Authority. 
Sec. 1825. Multistate international corridor development program. 
Sec. 1826. Authorization of contract authority for States with Indian Reserva-
tions. 
Subtitle I—Technical Corrections 
Sec. 1901. Repeal or update of obsolete text. 
Sec. 1902. Clarification of date. 
Sec. 1903. Inclusion of requirements for signs identifying funding sources in title 
23. 
Sec. 1904. Inclusion of Buy America requirements in title 23. 
Sec. 1905. Technical amendments to nondiscrimination section. 
TITLE II—TRANSPORTATION RESEARCH 
Subtitle A—Funding 
Sec. 2001. Authorization of appropriations. 
Sec. 2002. Obligation ceiling. 
Sec. 2003. Notice.
HR 3550 EAS 
Subtitle B—Research and Technology 
Sec. 2101. Research and technology program. 
Sec. 2102. Study of data collection and statistical analysis efforts. 
Sec. 2103. Centers for surface transportation excellence. 
Sec. 2104. Motorcycle crash causation study grants. 
Sec. 2105. Transportation technology innovation and demonstration program 
Subtitle C—Intelligent Transportation System Research 
Sec. 2201. Intelligent transportation system research and technical assistance 
program. 
TITLE III—PUBLIC TRANSPORTATION 
Sec. 3001. Short title. 
Sec. 3002. Amendments to title 49, United States Code; updated terminology. 
Sec. 3003. Policies, findings, and purposes. 
Sec. 3004. Definitions. 
Sec. 3005. Metropolitan transportation planning. 
Sec. 3006. Statewide transportation planning. 
Sec. 3007. Transportation management areas. 
Sec. 3008. Private enterprise participation. 
Sec. 3009. Urbanized area formula grants. 
Sec. 3010. Planning programs. 
Sec. 3011. Capital investment program. 
Sec. 3012. New freedom for elderly persons and persons with disabilities. 
Sec. 3013. Formula grants for other than urbanized areas. 
Sec. 3014. Research, development, demonstration, and deployment projects. 
Sec. 3015. Transit cooperative research program. 
Sec. 3016. National research programs. 
Sec. 3017. National transit institute. 
Sec. 3018. Bus testing facility. 
Sec. 3019. Bicycle facilities. 
Sec. 3020. Suspended light rail technology pilot project. 
Sec. 3021. Crime prevention and security. 
Sec. 3022. General provisions on assistance. 
Sec. 3023. Special provisions for capital projects. 
Sec. 3024. Contract requirements. 
Sec. 3025. Project management oversight and review. 
Sec. 3026. Project review. 
Sec. 3027. Investigations of safety and security risk. 
Sec. 3028. State safety oversight. 
Sec. 3029. Sensitive security information. 
Sec. 3030. Terrorist attacks and other acts of violence against public transpor-
tation systems. 
Sec. 3031. Controlled substances and alcohol misuse testing. 
Sec. 3032. Employee protective arrangements. 
Sec. 3033. Administrative procedures. 
Sec. 3034. Reports and audits. 
Sec. 3035. Apportionments of appropriations for formula grants. 
Sec. 3036. Apportionments for fixed guideway modernization. 
Sec. 3037. Authorizations. 
Sec. 3038. Apportionments based on growing States formula factors. 
Sec. 3039. Job access and reverse commute grants. 
Sec. 3040. Over-the-road bus accessibility program.
HR 3550 EAS 
Sec. 3041. Alternative transportation in parks and public lands. 
Sec. 3042. Obligation ceiling. 
Sec. 3043. Adjustments for the Surface Transportation Extension Act of 2003. 
Sec. 3044. Disadvantaged business enterprise. 
Sec. 3045. Intermodal passenger facilities. 
TITLE IV—SURFACE TRANSPORTATION SAFETY 
Sec. 4001. Short title. 
Subtitle A—Highway Safety 
PART I—HIGHWAY SAFETY GRANT PROGRAM 
Sec. 4101. Short title; amendment of title 23, United States Code. 
Sec. 4102. Authorization of appropriations. 
Sec. 4103. Highway safety programs. 
Sec. 4104. Highway safety research and outreach programs. 
Sec. 4105. National Highway Safety Advisory Committee technical correction. 
Sec. 4106. Occupant protection grants. 
Sec. 4107. School bus driver training. 
Sec. 4108. Emergency medical services. 
Sec. 4109. Repeal of authority for alcohol traffic safety programs. 
Sec. 4110. Impaired driving program. 
Sec. 4111. State traffic safety information system improvements. 
Sec. 4112. NHTSA accountability. 
PART II—SPECIFIC VEHICLE SAFETY-RELATED RULINGS 
Sec. 4151. Amendment of title 49, United States Code. 
Sec. 4152. Vehicle crash ejection prevention. 
Sec. 4153. Vehicle backover avoidance technology study. 
Sec. 4154. Vehicle backover data collection. 
Sec. 4155. Aggressivity and incompatibility reduction standard. 
Sec. 4156. Improved crashworthiness. 
Sec. 4157. 15-passenger vans. 
Sec. 4158. Additional safety performance criteria for tires. 
Sec. 4159. Safety belt use reminders. 
Sec. 4160. Missed deadlines reports. 
Sec. 4161. Grants for improving child passenger safety programs. 
Sec. 4162. Authorization of appropriations. 
PART III—MISCELLANEOUS PROVISIONS 
Sec. 4171. Driver licensing and education. 
Sec. 4172. Amendment of Automobile Information Disclosure Act. 
Sec. 4173. Child safety. 
Sec. 4174. Safe intersections. 
Sec. 4175. Study on increased speed limits. 
Subtitle B—Motor Carrier Safety and Unified Carrier Registration 
PART I—ADMINISTRATIVE MATTERS 
Sec. 4201. Short title; amendment of title 49, United States Code. 
Sec. 4202. Required completion of overdue reports, studies, and rulemakings. 
Sec. 4203. Contract authority.
HR 3550 EAS 
PART II—MOTOR CARRIER SAFETY 
Sec. 4221. Minimum guarantee. 
Sec. 4222. Authorization of appropriations. 
Sec. 4223. Motor carrier safety grants. 
Sec. 4224. CDL working group. 
Sec. 4225. CDL learner’s permit program. 
Sec. 4226. Hobbs Act. 
Sec. 4227. Penalty for denial of access to records. 
Sec. 4228. Medical program. 
Sec. 4229. Operation of commercial motor vehicles by individuals who use insulin 
to treat diabetes mellitus. 
Sec. 4230. Financial responsibility for private motor carriers. 
Sec. 4231. Increased penalties for out-of-service violations and false records. 
Sec. 4232. Elimination of commodity and service exemptions. 
Sec. 4233. Intrastate operations of interstate motor carriers. 
Sec. 4234. Authority to stop commercial motor vehicles. 
Sec. 4235. Revocation of operating authority. 
Sec. 4236. Pattern of safety violations by motor carrier management. 
Sec. 4237. Motor carrier research and technology program. 
Sec. 4238. Review of commercial zone exemption provision. 
Sec. 4239. International cooperation. 
Sec. 4240. Performance and registration information system management. 
Sec. 4241. Commercial vehicle information systems and networks deployment.
Sec. 4242. Outreach and education. 
Sec. 4243. Operation of restricted property-carrying units on national highway 
system. 
Sec. 4244. Operation of longer combination vehicles on national highway system. 
Sec. 4245. Application of safety standards to certain foreign motor carriers. 
Sec. 4246. Background checks for Mexican and Canadian drivers hauling haz-
ardous materials. 
Sec. 4247. Exemption of drivers of utility service vehicles. 
Sec. 4248. Operation of commercial motor vehicles transporting agricultural com-
modities and farm supplies. 
Sec. 4249. Safety performance history screening. 
Sec. 4250. Compliance review audit. 
PART III—UNIFIED CARRIER REGISTRATION 
Sec. 4261. Short title. 
Sec. 4262. Relationship to other laws. 
Sec. 4263. Inclusion of motor private and exempt carriers. 
Sec. 4264. Unified carrier registration system. 
Sec. 4265. Registration of motor carriers by States. 
Sec. 4266. Identification of vehicles. 
Sec. 4267. Use of UCR agreement revenues as matching funds. 
Sec. 4268. Clerical amendments. 
Subtitle C—Household Goods Movers 
Sec. 4301. Short title; amendment of title 49, United States Code. 
Sec. 4302. Findings; sense of Congress. 
Sec. 4303. Definitions. 
Sec. 4304. Payment of rates. 
Sec. 4305. Household goods carrier operations. 
Sec. 4306. Liability of carriers under receipts and bills of lading.
HR 3550 EAS 
Sec. 4307. Dispute settlement for shipments of household goods. 
Sec. 4308. Enforcement of regulations related to transportation of household 
goods. 
Sec. 4309. Working group for development of practices and procedures to enhance 
Federal-State relations. 
Sec. 4310. Consumer handbook on DOT website. 
Sec. 4311. Information about household goods transportation on carriers’ 
websites. 
Sec. 4312. Consumer complaints. 
Sec. 4313. Review of liability of carriers. 
Sec. 4314. Civil penalties relating to household goods brokers. 
Sec. 4315. Civil and criminal penalty for failing to give up possession of house-
hold goods. 
Sec. 4316. Progress report. 
Sec. 4317. Additional registration requirements for motor carriers of household 
goods. 
Subtitle D—Hazardous Materials Transportation Safety and Security 
Sec. 4401. Short title. 
Sec. 4402. Amendment of title 49, United States Code. 
PART I—GENERAL AUTHORITIES ON TRANSPORTATION OF HAZARDOUS 
MATERIALS 
Sec. 4421. Purpose. 
Sec. 4422. Definitions. 
Sec. 4423. General regulatory authority. 
Sec. 4424. Limitation on issuance of hazmat licenses. 
Sec. 4425. Representation and tampering. 
Sec. 4426. Transporting certain highly radioactive material. 
Sec. 4427. Hazmat employee training requirements and grants. 
Sec. 4428. Registration. 
Sec. 4429. Shipping papers and disclosure. 
Sec. 4430. Rail tank cars. 
Sec. 4431. Highway routing of hazardous material. 
Sec. 4432. Unsatisfactory safety ratings. 
Sec. 4433. Air transportation of ionizing radiation material. 
Sec. 4434. Training curriculum for the public sector. 
Sec. 4435. Planning and training grants; emergency preparedness fund. 
Sec. 4436. Special permits and exclusions. 
Sec. 4437. Uniform forms and procedures. 
Sec. 4438. International uniformity of standards and requirements. 
Sec. 4439. Hazardous materials transportation safety and security. 
Sec. 4440. Enforcement. 
Sec. 4441. Civil penalties. 
Sec. 4442. Criminal penalties. 
Sec. 4443. Preemption. 
Sec. 4444. Relationship to other laws. 
Sec. 4445. Judicial review. 
Sec. 4446. Authorization of appropriations. 
Sec. 4447. Additional civil and criminal penalties.
HR 3550 EAS 
PART II—OTHER MATTERS 
Sec. 4461. Administrative authority for research and special programs adminis-
tration. 
Sec. 4462. Mailability of hazardous materials. 
Sec. 4463. Criminal matters. 
Sec. 4464. Cargo inspection program. 
Sec. 4465. Information on hazmat registrations. 
Sec. 4466. Report on applying hazardous materials regulations to persons who re-
ject hazardous materials. 
PART III—SANITARY FOOD TRANSPORTATION 
Sec. 4481. Short title. 
Sec. 4482. Responsibilities of the Secretary of Health and Human Services. 
Sec. 4483. Department of Transportation requirements. 
Sec. 4484. Effective date. 
Subtitle E—Recreational Boating Safety Programs 
Sec. 4501. Short title. 
PART I—FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS 
Sec. 4521. Amendment of Federal aid in Fish Restoration Act. 
Sec. 4522. Authorization of appropriations. 
Sec. 4523. Division of annual appropriations. 
Sec. 4524. Maintenance of projects. 
Sec. 4525. Boating infrastructure. 
Sec. 4526. Requirements and restrictions concerning use of amounts for expenses 
for administration. 
Sec. 4527. Payments of funds to and cooperation with Puerto Rico, the District 
of Columbia, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Virgin Islands. 
Sec. 4528. Multistate conservation grant program. 
PART II—CLEAN VESSEL ACT AMENDMENTS 
Sec. 4541. Grant program. 
PART III—RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS 
Sec. 4561. State matching funds requirement. 
Sec. 4562. Availability of allocations. 
Sec. 4563. Authorization of appropriations for State recreational boating safety 
programs. 
Sec. 4564. Maintenance of effort for State recreational boating safety programs. 
PART IV—MISCELLANEOUS 
Sec. 4581. Technical correction to Homeland Security Act. 
Subtitle F—Rail Transportation 
PART I—AMTRAK 
Sec. 4601. Authorization of appropriations. 
Sec. 4602. Establishment of Build America Corporation. 
Sec. 4603. Federal bonds for transportation infrastructure.
HR 3550 EAS 
PART II—RAILROAD TRACK MODERNIZATION 
Sec. 4631. Short title. 
Sec. 4632. Capital grants for railroad track. 
Sec. 4633. Regulations. 
Sec. 4634. Study of grant-funded projects. 
Sec. 4635. Authorization of appropriations. 
PART III—OTHER RAIL TRANSPORTATION-RELATED PROVISIONS 
Sec. 4661. Capital grants for rail line relocation projects. 
Sec. 4662. Use of congestion mitigation and air quality improvement funds for 
Boston to Portland passenger rail service. 
TITLE V—HIGHWAY REAUTHORIZATION AND EXCISE TAX 
SIMPLIFICATION 
Sec. 5000. Short title; amendment of 1986 code. 
Subtitle A—Trust Fund Reauthorization 
Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust Fund 
expenditure authority and related taxes. 
Sec. 5002. Full accounting of funds received by the Highway Trust Fund. 
Sec. 5003. Modification of adjustments of apportionments. 
Subtitle B—Volumetric Ethanol Excise Tax Credit 
Sec. 5101. Short title. 
Sec. 5102. Alcohol and biodiesel excise tax credit and extension of alcohol fuels 
income tax credit. 
Sec. 5103. Biodiesel income tax credit. 
Subtitle C—Fuel Fraud Prevention 
Sec. 5200. Short title. 
PART I—AVIATION JET FUEL 
Sec. 5211. Taxation of aviation-grade kerosene. 
Sec. 5212. Transfer of certain amounts from the Airport and Airway Trust Fund 
to the Highway Trust Fund to reflect highway use of jet fuel. 
PART II—DYED FUEL 
Sec. 5221. Dye injection equipment. 
Sec. 5222. Elimination of administrative review for taxable use of dyed fuel.
Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures. 
Sec. 5224. Termination of dyed diesel use by intercity buses. 
PART III—MODIFICATION OF INSPECTION OF RECORDS PROVISIONS 
Sec. 5231. Authority to inspect on-site records. 
Sec. 5232. Assessable penalty for refusal of entry. 
PART IV—REGISTRATION AND REPORTING REQUIREMENTS 
Sec. 5241. Registration of pipeline or vessel operators required for exemption of 
bulk transfers to registered terminals or refineries. 
Sec. 5242. Display of registration.
HR 3550 EAS 
Sec. 5243. Registration of persons within foreign trade zones, etc. 
Sec. 5244. Penalties for failure to register and failure to report. 
Sec. 5245. Information reporting for persons claiming certain tax benefits. 
Sec. 5246. Electronic reporting. 
PART V—IMPORTS 
Sec. 5251. Tax at point of entry where importer not registered. 
Sec. 5252. Reconciliation of on-loaded cargo to entered cargo. 
PART VI—MISCELLANEOUS PROVISIONS 
Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not in a diesel- 
powered vehicle or train. 
Sec. 5262. Modification of ultimate vendor refund claims with respect to farming. 
Sec. 5263. Taxable fuel refunds for certain ultimate vendors. 
Sec. 5264. Two-party exchanges. 
Sec. 5265. Modifications of tax on use of certain vehicles. 
Sec. 5266. Dedication of revenues from certain penalties to the Highway Trust 
Fund. 
Sec. 5267. Nonapplication of export exemption to delivery of fuel to motor vehi-
cles removed from United States. 
PART VII—TOTAL ACCOUNTABILITY 
Sec. 5271. Total accountability. 
Sec. 5272. Excise tax reporting. 
Sec. 5273. Information reporting. 
Subtitle D—Definition of Highway Vehicle 
Sec. 5301. Exemption from certain excise taxes for mobile machinery. 
Sec. 5302. Modification of definition of off-highway vehicle. 
Subtitle E—Excise Tax Reform and Simplification 
PART I—HIGHWAY EXCISE TAXES 
Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund. 
Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland waterway 
barge fuels. 
PART II—AQUATIC EXCISE TAXES 
Sec. 5411. Elimination of Aquatic Resources Trust Fund and transformation of 
Sport Fish Restoration Account. 
Sec. 5412. Exemption of LED devices from sonar devices suitable for finding fish. 
Sec. 5413. Repeal of harbor maintenance tax on exports. 
Sec. 5414. Cap on excise tax on certain fishing equipment. 
Sec. 5415. Reduction in rate of tax on portable aerated bait containers. 
PART III—AERIAL EXCISE TAXES 
Sec. 5421. Clarification of excise tax exemptions for agricultural aerial applica-
tors and exemption for fixed-wing aircraft engaged in forestry 
operations. 
Sec. 5422. Modification of rural airport definition. 
Sec. 5423. Exemption from ticket taxes for transportation provided by seaplanes. 
Sec. 5424. Certain sightseeing flights exempt from taxes on air transportation.
HR 3550 EAS 
PART IV—ALCOHOLIC BEVERAGE EXCISE TAXES 
Sec. 5431. Repeal of special occupational taxes on producers and marketers of al-
coholic beverages. 
Sec. 5432. Suspension of limitation on rate of rum excise tax cover over to Puerto 
Rico and Virgin Islands. 
PART V—SPORT EXCISE TAXES 
Sec. 5441. Custom gunsmiths. 
Sec. 5442. Modified taxation of imported archery products. 
Sec. 5443. Treatment of tribal governments for purposes of Federal wagering ex-
cise and occupational taxes. 
PART VI—OTHER PROVISIONS 
Sec. 5451. Income tax credit for distilled spirits wholesalers and for distilled spir-
its in control State bailment warehouses for costs of carrying 
Federal excise taxes on bottled distilled spirits. 
Sec. 5452. Credit for taxpayers owning commercial power takeoff vehicles. 
Sec. 5453. Credit for auxiliary power units installed on diesel-powered trucks. 
Subtitle F—Miscellaneous Provisions 
Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission. 
Sec. 5502. National Surface Transportation Infrastructure Financing Commis-
sion. 
Sec. 5503. Treasury study of fuel tax compliance and interagency cooperation. 
Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to include 
funding for studies of supplemental or alternative financing for 
the Highway Trust Fund. 
Sec. 5505. Treasury study of highway fuels used by trucks for non-transportation 
purposes. 
Sec. 5506. Delta regional transportation plan. 
Sec. 5507. Treatment of employer-provided transit and van pooling benefits. 
Sec. 5508. Study of incentives for production of biodiesel. 
Subtitle G—Revenue Offsets 
PART I—LIMITATION ON EXPENSING CERTAIN PASSENGERS AUTOMOBILES 
Sec. 5601. Expansion of limitation on depreciation of certain passenger auto-
mobiles. 
PART II—PROVISIONS DESIGNED TO CURTAIL TAX SHELTERS 
Sec. 5611. Clarification of economic substance doctrine. 
Sec. 5612. Penalty for failing to disclose reportable transaction. 
Sec. 5613. Accuracy-related penalty for listed transactions and other reportable 
transactions having a significant tax avoidance purpose. 
Sec. 5614. Penalty for understatements attributable to transactions lacking eco-
nomic substance, etc. 
Sec. 5615. Modifications of substantial understatement penalty for nonreportable 
transactions. 
Sec. 5616. Tax shelter exception to confidentiality privileges relating to taxpayer 
communications. 
Sec. 5617. Disclosure of reportable transactions. 
Sec. 5618. Modifications to penalty for failure to register tax shelters.
HR 3550 EAS 
Sec. 5619. Modification of penalty for failure to maintain lists of investors. 
Sec. 5620. Modification of actions to enjoin certain conduct related to tax shelters 
and reportable transactions. 
Sec. 5621. Understatement of taxpayer’s liability by income tax return preparer. 
Sec. 5622. Penalty on failure to report interests in foreign financial accounts. 
Sec. 5623. Frivolous tax submissions. 
Sec. 5624. Regulation of individuals practicing before the Department of Treas-
ury. 
Sec. 5625. Penalty on promoters of tax shelters. 
Sec. 5626. Statute of limitations for taxable years for which required listed trans-
actions not reported. 
Sec. 5627. Denial of deduction for interest on underpayments attributable to non-
disclosed reportable and noneconomic substance transactions. 
Sec. 5628. Authorization of appropriations for tax law enforcement. 
PART III—OTHER CORPORATE GOVERNANCE PROVISIONS 
Sec. 5631. Affirmation of consolidated return regulation authority. 
Sec. 5632. Declaration by chief executive officer relating to Federal annual cor-
porate income tax return. 
Sec. 5633. Denial of deduction for certain fines, penalties, and other amounts. 
Sec. 5634. Disallowance of deduction for punitive damages. 
Sec. 5635. Increase in criminal monetary penalty limitation for the under-
payment or overpayment of tax due to fraud. 
Sec. 5636. Doubling of certain penalties, fines, and interest on underpayments re-
lated to certain offshore financial arrangements. 
PART IV—ENRON-RELATED TAX SHELTER PROVISIONS 
Sec. 5641. Limitation on transfer or importation of built-in losses. 
Sec. 5642. No reduction of basis under section 734 in stock held by partnership 
in corporate partner. 
Sec. 5643. Repeal of special rules for FASITs. 
Sec. 5644. Expanded disallowance of deduction for interest on convertible debt. 
Sec. 5645. Expanded authority to disallow tax benefits under section 269. 
Sec. 5646. Modification of interaction between subpart F and passive foreign in-
vestment company rules. 
PART V—PROVISIONS TO DISCOURAGE EXPATRIATION 
Sec. 5651. Tax treatment of inverted corporate entities. 
Sec. 5652. Imposition of mark-to-market tax on individuals who expatriate. 
Sec. 5653. Excise tax on stock compensation of insiders in inverted corporations. 
Sec. 5654. Reinsurance of United States risks in foreign jurisdictions. 
Subtitle H—Additional Revenue Provisions 
PART I—ADMINISTRATIVE PROVISIONS 
Sec. 5671. Extension of IRS user fees. 
Sec. 5672. Clarification of rules for payment of estimated tax for certain deemed 
asset sales. 
Sec. 5673. Partial payment of tax liability in installment agreements. 
PART II—FINANCIAL INSTRUMENTS 
Sec. 5675. Treatment of stripped interests in bond and preferred stock funds, etc.
HR 3550 EAS 
Sec. 5676. Application of earnings stripping rules to partnerships and S corpora-
tions. 
Sec. 5677. Recognition of cancellation of indebtedness income realized on satisfac-
tion of debt with partnership interest. 
Sec. 5678. Modification of straddle rules. 
Sec. 5679. Denial of installment sale treatment for all readily tradeable debt. 
PART III—CORPORATIONS AND PARTNERSHIPS 
Sec. 5680. Modification of treatment of transfers to creditors in divisive reorga-
nizations. 
Sec. 5681. Clarification of definition of nonqualified preferred stock. 
Sec. 5682. Modification of definition of controlled group of corporations 
Sec. 5683. Mandatory basis adjustments in connection with partnership distribu-
tions and transfers of partnership interests. 
Sec. 5684. Class lives for utility grading costs. 
Sec. 5685. Consistent amortization of periods for intangibles. 
Subtitle I—Tax-Exempt Financing of Highway Projects and Rail-Truck 
Transfer Facilities 
Sec. 5691. Tax-exempt financing of highway projects and rail-truck transfer fa-
cilities. 
Sec. 5692. Addition of vaccines against hepatitis A to list of taxable vaccines. 
Sec. 5693. Addition of vaccines against influenza to list of taxable vaccines. 
Sec. 5694. Extension of amortization of intangibles to sports franchises. 
TITLE VI—TRANSPORTATION DISCRETIONARY SPENDING 
GUARANTEE AND BUDGET OFFSETS 
Sec. 6101. Sense of the Senate on overall Federal budget. 
Sec. 6102. Discretionary spending categories. 
Sec. 6103. Level of obligation limitations. 
TITLE VII—MISCELLANEOUS PROVISIONS 
Sec. 7001. Reimbursement of certain transportation costs incurred by members of 
the United States Armed Forces on rest and recuperation leave. 
TITLE VIII—SOLID WASTE DISPOSAL 
Sec. 8001. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete. 
Sec. 8002. Use of granular mine tailings. 
SEC. 2. GENERAL DEFINITIONS. 
In this Act: 
(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Transportation. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation.
HR 3550 EAS 
SEC. 3. DEFINITIONS FOR TITLE 23. 
Section 101 of title 23, United States Code, is amended 
by striking subsection (a) and inserting the following: 
‘‘(a) DEFINITIONS.—In this title: 
‘‘(1) APPORTIONMENT.—The term ‘apportion-
ment’ includes an unexpended apportionment made 
under a law enacted before the date of enactment of 
the Safe, Accountable, Flexible, and Efficient Trans-
portation Equity Act of 2004. 
‘‘(2) CARPOOL PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘carpool 
project’ means any project to encourage the use 
of carpools and vanpools. 
‘‘(B) 
INCLUSIONS.—The 
term 
‘carpool 
project’ includes a project— 
‘‘(i) to provide carpooling opportuni-
ties to the elderly and individuals with dis-
abilities; 
‘‘(ii) to develop and implement a sys-
tem for locating potential riders and in-
forming the riders of carpool opportunities; 
‘‘(iii) to acquire vehicles for carpool 
use; 
‘‘(iv) to designate highway lanes as 
preferential carpool highway lanes;
HR 3550 EAS 
‘‘(v) to provide carpool-related traffic 
control devices; and 
‘‘(vi) to designate facilities for use for 
preferential parking for carpools. 
‘‘(3) CONSTRUCTION.— 
‘‘(A) IN GENERAL.—The term ‘construction’ 
means the supervision, inspection, and actual 
building of, and incurring of all costs incidental 
to the construction or reconstruction of a high-
way, including bond costs and other costs relat-
ing to the issuance in accordance with section 
122 of bonds or other debt financing instruments 
and costs incurred by the State in performing 
Federal-aid project related audits that directly 
benefit the Federal-aid highway program. 
‘‘(B) INCLUSIONS.—The term ‘construction’ 
includes— 
‘‘(i) locating, surveying, and mapping 
(including the establishment of temporary 
and permanent geodetic markers in accord-
ance with specifications of the National 
Oceanic and Atmospheric Administration); 
‘‘(ii) resurfacing, restoration, and re-
habilitation; 
‘‘(iii) acquisition of rights-of-way;
HR 3550 EAS 
‘‘(iv) relocation assistance, acquisition 
of replacement housing sites, and acquisi-
tion and rehabilitation, relocation, and con-
struction of replacement housing; 
‘‘(v) elimination of hazards of railway 
grade crossings; 
‘‘(vi) elimination of roadside obstacles; 
‘‘(vii) improvements that directly fa-
cilitate and control traffic flow, such as— 
‘‘(I) grade separation of intersec-
tions; 
‘‘(II) widening of lanes; 
‘‘(III) channelization of traffic; 
‘‘(IV) traffic control systems; and 
‘‘(V) passenger loading and un-
loading areas; 
‘‘(viii) capital improvements that di-
rectly facilitate an effective vehicle weight 
enforcement program, such as— 
‘‘(I) scales (fixed and portable); 
‘‘(II) scale pits; 
‘‘(III) scale installation; and 
‘‘(IV) scale houses; 
‘‘(ix) improvements directly relating to 
securing transportation infrastructures for
HR 3550 EAS 
detection, preparedness, response, and recov-
ery; 
‘‘(x) operating costs relating to traffic 
monitoring, management, and control; 
‘‘(xi) operational improvements; and 
‘‘(xii) transportation system manage-
ment and operations. 
‘‘(4) COUNTY.—The term ‘county’ includes— 
‘‘(A) a corresponding unit of government 
under any other name in a State that does not 
have county organizations; and 
‘‘(B) in those States in which the county 
government does not have jurisdiction over high-
ways, any local government unit vested with ju-
risdiction over local highways. 
‘‘(5) FEDERAL-AID HIGHWAY.— 
‘‘(A) IN GENERAL.—The term ‘Federal-aid 
highway’ means a highway eligible for assistance 
under this chapter. 
‘‘(B) EXCLUSIONS.—The term ‘Federal-aid 
highway’ does not include a highway classified 
as a local road or rural minor collector. 
‘‘(6) FEDERAL-AID SYSTEM.—The term ‘Federal- 
aid system’ means any of the Federal-aid highway 
systems described in section 103.
HR 3550 EAS 
‘‘(7) FEDERAL
LANDS
HIGHWAY.—The term 
‘Federal lands highway’ means— 
‘‘(A) a forest highway; 
‘‘(B) a recreation road; 
‘‘(C) a public Forest Service road; 
‘‘(D) a park road; 
‘‘(E) a parkway; 
‘‘(F) a refuge road; 
‘‘(G) an Indian reservation road; and 
‘‘(H) a public lands highway. 
‘‘(8) FOREST HIGHWAY.—The term ‘forest high-
way’ means a forest road that is— 
‘‘(A) under the jurisdiction of, and main-
tained by, a public authority; and 
‘‘(B) is open to public travel. 
‘‘(9) FOREST ROAD OR TRAIL.— 
‘‘(A) IN GENERAL.—The term ‘forest road or 
trail’ means a road or trail wholly or partly 
within, or adjacent to, and serving National 
Forest System land that is necessary for the pro-
tection, administration, use, and development of 
the resources of that land. 
‘‘(B) INCLUSIONS.—The term ‘forest road or 
trail’ includes— 
‘‘(i) a classified forest road;
HR 3550 EAS 
‘‘(ii) an unclassified forest road; 
‘‘(iii) a temporary forest road; and 
‘‘(iv) a public forest service road. 
‘‘(10) FREIGHT TRANSPORTATION GATEWAY.— 
‘‘(A) IN GENERAL.—The term ‘freight trans-
portation gateway’ means a nationally or re-
gionally significant transportation port of entry 
or hub for domestic and global trade or military 
mobilization. 
‘‘(B) INCLUSIONS.—The term ‘freight trans-
portation gateway’ includes freight intermodal 
and Strategic Highway Network connections that 
provide access to and from a port or hub de-
scribed in subparagraph (A). 
‘‘(11) 
HIGHWAY.—The 
term 
‘highway’ 
in-
cludes— 
‘‘(A) a road, street, and parkway; 
‘‘(B) a right-of-way, bridge, railroad-high-
way crossing, tunnel, drainage structure, sign, 
guardrail, and protective structure, in connec-
tion with a highway; and 
‘‘(C) a portion of any interstate or inter-
national bridge or tunnel (including the ap-
proaches to the interstate or international bridge 
or tunnel, and such transportation facilities as
HR 3550 EAS 
may be required by the United States Customs 
Service and the Bureau of Citizenship and Im-
migration Services in connection with the oper-
ation of an international bridge or tunnel), the 
cost of which is assumed by a State transpor-
tation department. 
‘‘(12) 
HIGHWAY
SAFETY
IMPROVEMENT 
PROJECT.—The term ‘highway safety improvement 
project’ means a project that meets the requirements 
of section 148. 
‘‘(13) INDIAN RESERVATION ROAD.— 
‘‘(A) IN GENERAL.—The term ‘Indian res-
ervation road’ means a public road that is lo-
cated within or provides access to an area de-
scribed in subparagraph (B) on which or in 
which reside Indians or Alaskan Natives that, as 
determined by the Secretary of the Interior, are 
eligible for services generally available to Indians 
under Federal laws specifically applicable to In-
dians. 
‘‘(B) AREAS.—The areas referred to in sub-
paragraph (A) are— 
‘‘(i) an Indian reservation; 
‘‘(ii) Indian trust land or restricted 
Indian land that is not subject to fee title
HR 3550 EAS 
alienation without the approval of the Fed-
eral Government; and 
‘‘(iii) an Indian or Alaska Native vil-
lage, group, or community. 
‘‘(14) INTERSTATE
SYSTEM.—The term ‘Inter-
state System’ means the Dwight D. Eisenhower Na-
tional System of Interstate and Defense Highways de-
scribed in section 103(c). 
‘‘(15) MAINTENANCE.— 
‘‘(A) IN GENERAL.—The term ‘maintenance’ 
means the preservation of a highway. 
‘‘(B) INCLUSIONS.—The term ‘maintenance’ 
includes the preservation of— 
‘‘(i) the surface, shoulders, roadsides, 
and structures of a highway; and 
‘‘(ii) such traffic-control devices as are 
necessary for safe, secure, and efficient use 
of a highway. 
‘‘(16) MAINTENANCE AREA.—The term ‘mainte-
nance area’ means an area that was designated as a 
nonattainment area, but was later redesignated by the 
Administrator of the Environmental Protection Agen-
cy as an attainment area, under section 107(d) of the 
Clean Air Act (42 U.S.C. 7407(d)).
HR 3550 EAS 
‘‘(17) NATIONAL
FOREST
SYSTEM
ROAD
OR 
TRAIL.—The term ‘National Forest System road or 
trail’ means a forest road or trail that is under the 
jurisdiction of the Forest Service. 
‘‘(18) NATIONAL HIGHWAY SYSTEM.—The term 
‘National Highway System’ means the Federal-aid 
highway system described in section 103(b). 
‘‘(19) OPERATING
COSTS
FOR
TRAFFIC
MONI-
TORING, MANAGEMENT, AND CONTROL.—The term ‘op-
erating costs for traffic monitoring, management, and 
control’ includes— 
‘‘(A) labor costs; 
‘‘(B) administrative costs; 
‘‘(C) costs of utilities and rent; 
‘‘(D) costs incurred by transportation agen-
cies for technology to monitor critical transpor-
tation infrastructure for security purposes; and 
‘‘(E) other costs associated with transpor-
tation systems management and operations and 
the continuous operation of traffic control, such 
as— 
‘‘(i) an integrated traffic control sys-
tem; 
‘‘(ii) an incident management pro-
gram; and
HR 3550 EAS 
‘‘(iii) a traffic control center. 
‘‘(20) OPERATIONAL IMPROVEMENT.— 
‘‘(A) IN GENERAL.—The term ‘operational 
improvement’ means— 
‘‘(i) a capital improvement for instal-
lation or implementation of— 
‘‘(I) 
a 
transportation 
system 
management and operations program; 
‘‘(II) traffic and transportation 
security surveillance and control equip-
ment; 
‘‘(III) a computerized signal sys-
tem; 
‘‘(IV) a motorist information sys-
tem; 
‘‘(V) an integrated traffic control 
system; 
‘‘(VI) an incident management 
program; 
‘‘(VII) equipment and programs 
for transportation response to man-
made and natural disasters; or 
‘‘(VIII) a transportation demand 
management facility, strategy, or pro-
gram; and
HR 3550 EAS 
‘‘(ii) such other capital improvements 
to a public road as the Secretary may des-
ignate by regulation. 
‘‘(B) EXCLUSIONS.—The term ‘operational 
improvement’ does not include— 
‘‘(i) a resurfacing, restorative, or reha-
bilitative improvement; 
‘‘(ii) construction of an additional 
lane, interchange, or grade separation; or 
‘‘(iii) construction of a new facility on 
a new location. 
‘‘(21) PARK ROAD.—The term ‘park road’ means 
a public road (including a bridge built primarily for 
pedestrian use, but with capacity for use by emer-
gency vehicles) that is located within, or provides ac-
cess to, an area in the National Park System with 
title and maintenance responsibilities vested in the 
United States. 
‘‘(22) PARKWAY.—The term ‘parkway’ means a 
parkway authorized by an Act of Congress on land to 
which title is vested in the United States. 
‘‘(23) PROJECT.—The term ‘project’ means— 
‘‘(A)(i) an undertaking to construct a par-
ticular portion of a highway; or
HR 3550 EAS 
‘‘(ii) if the context so implies, a particular 
portion of a highway so constructed; and 
‘‘(B) any other undertaking eligible for as-
sistance under this title. 
‘‘(24) PROJECT AGREEMENT.—The term ‘project 
agreement’ means the formal instrument to be exe-
cuted by the Secretary and recipient of funds under 
this title. 
‘‘(25) PUBLIC AUTHORITY.—The term ‘public au-
thority’ means a Federal, State, county, town, or 
township, Indian tribe, municipal or other local gov-
ernment or instrumentality with authority to finance, 
build, operate, or maintain toll or toll-free facilities. 
‘‘(26) PUBLIC FOREST SERVICE ROAD.—The term 
‘public Forest Service road’ means a classified forest 
road— 
‘‘(A) that is open to public travel; 
‘‘(B) for which title and maintenance re-
sponsibility is vested in the Federal Government; 
and 
‘‘(C) that has been designated a public road 
by the Forest Service. 
‘‘(27) PUBLIC LANDS DEVELOPMENT ROADS AND 
TRAILS.—The term ‘public lands development roads 
and trails’ means roads and trails that the Secretary
HR 3550 EAS 
of the Interior determines are of primary importance 
for the development, protection, administration, and 
use of public lands and resources under the control of 
the Secretary of the Interior. 
‘‘(28) PUBLIC LANDS HIGHWAY.—The term ‘pub-
lic lands highway’ means— 
‘‘(A) a forest road that is— 
‘‘(i) under the jurisdiction of, and 
maintained by, a public authority; and 
‘‘(ii) open to public travel; and 
‘‘(B) any highway through unappropriated 
or unreserved public land, nontaxable Indian 
land, or any other Federal reservation (including 
a main highway through such land or reserva-
tion that is on the Federal-aid system) that is— 
‘‘(i) under the jurisdiction of, and 
maintained by, a public authority; and 
‘‘(ii) open to public travel. 
‘‘(29) PUBLIC
ROAD.—The term ‘public road’ 
means any road or street that is— 
‘‘(A) under the jurisdiction of, and main-
tained by, a public authority; and 
‘‘(B) open to public travel. 
‘‘(30) RECREATIONAL
ROAD.—The term ‘rec-
reational road’ means a public road—
HR 3550 EAS 
‘‘(A) that provides access to a museum, lake, 
reservoir, visitors center, gateway to a major 
wilderness area, public use area, or recreational 
or historic site; and 
‘‘(B) for which title is vested in the Federal 
Government. 
‘‘(31) REFUGE ROAD.—The term ‘refuge road’ 
means a public road— 
‘‘(A) that provides access to or within a 
unit of the National Wildlife Refuge System or 
a national fish hatchery; and 
‘‘(B) for which title and maintenance re-
sponsibility is vested in the United States Gov-
ernment. 
‘‘(32) RURAL
AREA.—The term ‘rural area’ 
means an area of a State that is not included in an 
urban area. 
‘‘(33) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Transportation. 
‘‘(34) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; and 
‘‘(C) the Commonwealth of Puerto Rico. 
‘‘(35) STATE FUNDS.—The term ‘State funds’ in-
cludes funds that are—
HR 3550 EAS 
‘‘(A) raised under the authority of the State 
(or any political or other subdivision of a State); 
and 
‘‘(B) made available for expenditure under 
the direct control of the State transportation de-
partment. 
‘‘(36) STATE TRANSPORTATION DEPARTMENT.— 
The term ‘State transportation department’ means 
the department, agency, commission, board, or official 
of any State charged by the laws of the State with the 
responsibility for highway construction. 
‘‘(37) TERRITORIAL
HIGHWAY
SYSTEM.—The 
term ‘territorial highway system’ means the system of 
arterial highways, collector roads, and necessary 
interisland connectors in American Samoa, the Com-
monwealth of the Northern Mariana Islands, Guam, 
and the United States Virgin Islands that have been 
designated by the appropriate Governor or chief exec-
utive officer of a territory, and approved by the Sec-
retary, in accordance with section 215. 
‘‘(38) TRANSPORTATION
ENHANCEMENT
ACTIV-
ITY.—The term ‘transportation enhancement activity’ 
means, with respect to any project or the area to be 
served by the project, any of the following activities 
as the activities relate to surface transportation:
HR 3550 EAS 
‘‘(A) Provision of facilities for pedestrians 
and bicycles. 
‘‘(B) Provision of safety and educational 
activities for pedestrians and bicyclists. 
‘‘(C) Acquisition of scenic easements and 
scenic or historic sites (including historic battle-
fields). 
‘‘(D) Scenic or historic highway programs 
(including the provision of tourist and welcome 
center facilities). 
‘‘(E) Landscaping and other scenic beautifi-
cation. 
‘‘(F) Historic preservation. 
‘‘(G) Rehabilitation and operation of his-
toric transportation buildings, structures, or fa-
cilities (including historic railroad facilities and 
canals). 
‘‘(H) Preservation of abandoned railway 
corridors (including the conversion and use of 
the corridors for pedestrian or bicycle trails). 
‘‘(I) Control and removal of outdoor adver-
tising. 
‘‘(J) Archaeological planning and research. 
‘‘(K) Environmental mitigation—
HR 3550 EAS 
‘‘(i) to address water pollution due to 
highway runoff; or 
‘‘(ii) reduce vehicle-caused wildlife 
mortality 
while 
maintaining 
habitat 
connectivity. 
‘‘(L) Establishment of transportation muse-
ums. 
‘‘(39) TRANSPORTATION SYSTEMS MANAGEMENT 
AND OPERATIONS.— 
‘‘(A) IN
GENERAL.—The term ‘transpor-
tation systems management and operations’ 
means an integrated program to optimize the 
performance of existing infrastructure through 
the implementation of multimodal and inter-
modal, cross-jurisdictional systems, services, and 
projects designed to preserve capacity and im-
prove security, safety, and reliability of the 
transportation system. 
‘‘(B) INCLUSIONS.—The term ‘transpor-
tation systems management and operations’ in-
cludes— 
‘‘(i) regional operations collaboration 
and coordination activities between trans-
portation and public safety agencies; and
HR 3550 EAS 
‘‘(ii) improvements to the transpor-
tation system such as traffic detection and 
surveillance, arterial management, freeway 
management, demand management, work 
zone management, emergency management, 
electronic toll collection, automated enforce-
ment, traffic incident management, road-
way weather management, traveler infor-
mation services, commercial vehicle oper-
ations, traffic control, freight management, 
and coordination of highway, rail, transit, 
bicycle, and pedestrian operations. 
‘‘(40) URBAN
AREA.—The term ‘urban area’ 
means— 
‘‘(A) an urbanized area (or, in the case of 
an urbanized area encompassing more than 1 
State, the portion of the urbanized area in each 
State); and 
‘‘(B) an urban place designated by the Bu-
reau of the Census that— 
‘‘(i) has a population of 5,000 or more; 
‘‘(ii) is not located within any urban-
ized area; and 
‘‘(iii) is located within boundaries 
that—
HR 3550 EAS 
‘‘(I) are fixed cooperatively by re-
sponsible State and local officials, sub-
ject to approval by the Secretary; and 
‘‘(II) encompass, at a minimum, 
the entire urban place designated by 
the Bureau of the Census (except in the 
case of cities in the State of Maine and 
in the State of New Hampshire). 
‘‘(41) URBANIZED AREA.—The term ‘urbanized 
area’ means an area that— 
‘‘(A) has a population of 50,000 or more; 
‘‘(B) is designated by the Bureau of the 
Census; and 
‘‘(C) is located within boundaries that— 
‘‘(i) are fixed cooperatively by respon-
sible State and local officials, subject to ap-
proval by the Secretary; and 
‘‘(ii) encompass, at a minimum, the 
entire urbanized area within a State as des-
ignated by the Bureau of the Census.’’.
HR 3550 EAS 
TITLE I—FEDERAL-AID 
HIGHWAYS 
Subtitle A—Funding 
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS. 
The following sums are authorized to be appropriated 
out of the Highway Trust Fund (other than the Mass Tran-
sit Account): 
(1) INTERSTATE MAINTENANCE PROGRAM.—For 
the Interstate maintenance program under section 
119 of title 23, United States Code— 
(A) $5,442,371,792 for fiscal year 2004; 
(B) $6,425,168,342 for fiscal year 2005; 
(C) $6,683,176,289 for fiscal year 2006; 
(D) $6,702,365,186 for fiscal year 2007; 
(E) $7,036,621,314 for fiscal year 2008; 
and 
(F) $7,139,130,081 for fiscal year 2009. 
(2) NATIONAL HIGHWAY SYSTEM.—For the Na-
tional Highway System under section 103 of that 
title— 
(A) $6,593,922,257 for fiscal year 2004; 
(B) $7,815,590,130 for fiscal year 2005; 
(C) $8,125,241,450 for fiscal year 2006; 
(D) $8,148,531,791 for fiscal year 2007;
HR 3550 EAS 
(E) $8,554,231,977 for fiscal year 2008; 
and 
(F) $8,678,591,297 for fiscal year 2009. 
(3) BRIDGE PROGRAM.—For the bridge program 
under section 144 of that title— 
(A) $4,650,754,076 for fiscal year 2004; 
(B) $5,507,287,150 for fiscal year 2005; 
(C) $5,713,860,644 for fiscal year 2006; 
(D) $5,730,266,418 for fiscal year 2007; 
(E) $6,016,042,650 for fiscal year 2008; 
and 
(F) $6,103,714,622 for fiscal year 2009. 
(4) SURFACE TRANSPORTATION PROGRAM.—For 
the surface transportation program under section 133 
of that title— 
(A) $6,877,178,900 for fiscal year 2004; 
(B) $8,107,950,527 for fiscal year 2005; 
(C) $8,417,741,127 for fiscal year 2006; 
(D) $8,441,910,349 for fiscal year 2007; 
(E) $8,862,919,976 for fiscal year 2008; 
and 
(F) $8,992,134,975 for fiscal year 2009. 
(5) CONGESTION MITIGATION AND AIR QUALITY 
IMPROVEMENT PROGRAM.—For the congestion mitiga-
HR 3550 EAS 
tion and air quality improvement program under sec-
tion 149 of that title— 
(A) $1,880,092,073 for fiscal year 2004; 
(B) $2,192,716,180 for fiscal year 2005; 
(C) $2,270,239,273 for fiscal year 2006; 
(D) $2,276,757,639 for fiscal year 2007; 
(E) $2,390,302,660 for fiscal year 2008; 
and 
(F) $2,425,236,569 for fiscal year 2009. 
(6) 
HIGHWAY
SAFETY
IMPROVEMENT
PRO-
GRAM.—For the highway safety improvement pro-
gram under section 148 of that title— 
(A) $1,187,426,572 for fiscal year 2004; 
(B) $1,325,828,388 for fiscal year 2005; 
(C) $1,377,448,548 for fiscal year 2006; 
(D) $1,381,403,511 for fiscal year 2007; 
(E) $1,450,295,996 for fiscal year 2008; 
and 
(F) $1,471,607,029 for fiscal year 2009. 
(7) APPALACHIAN DEVELOPMENT HIGHWAY SYS-
TEM
PROGRAM.—For the Appalachian development 
highway system program under section 170 of that 
title, $590,000,000 for each of fiscal years 2004 
through 2009.
HR 3550 EAS 
(8) RECREATIONAL TRAILS PROGRAM.—For the 
recreational trails program under section 206 of that 
title, $60,000,000 for each of fiscal years 2004 
through 2009. 
(9) FEDERAL LANDS HIGHWAYS PROGRAM.— 
(A) INDIAN RESERVATION ROADS.—For In-
dian reservation roads under section 204 of that 
title— 
(i) $300,000,000 for fiscal year 2004; 
(ii) $325,000,000 for fiscal year 2005; 
(iii) $350,000,000 for fiscal year 2006; 
(iv) $375,000,000 for fiscal year 2007; 
(v) $400,000,000 for fiscal year 2008; 
and 
(vi) $425,000,000 for fiscal year 2009. 
(B) RECREATION
ROADS.—For recreation 
roads under section 204 of that title, $50,000,000 
for each of fiscal years 2004 through 2009. 
(C) PARK
ROADS
AND
PARKWAYS.—For 
park roads and parkways under section 204 of 
that title— 
(i) $300,000,000 for fiscal year 2004; 
(ii) $310,000,000 for fiscal year 2005; 
and
HR 3550 EAS 
(iii) $320,000,000 for each of fiscal 
years 2006 through 2009. 
(D) REFUGE
ROADS.—For refuge roads 
under section 204 of that title, $30,000,000 for 
each of fiscal years 2004 through 2009. 
(E) PUBLIC LANDS HIGHWAYS.—For Fed-
eral lands highways under section 204 of that 
title, $300,000,000 for each of fiscal years 2004 
through 2009. 
(F) SAFETY.—For safety under section 204 
of that title, $40,000,000 for each of fiscal years 
2004 through 2009. 
(10) MULTISTATE CORRIDOR PROGRAM.—For the 
multistate corridor program under section 171 of that 
title— 
(A) $112,500,000 for fiscal year 2004; 
(B) $135,000,000 for fiscal year 2005; 
(C) $157,500,000 for fiscal year 2006; 
(D) $180,000,000 for fiscal year 2007; 
(E) $202,500,000 for fiscal year 2008; and 
(F) $225,000,000 for fiscal year 2009. 
(11) BORDER
PLANNING, 
OPERATIONS, 
AND 
TECHNOLOGY
PROGRAM.—For the border planning, 
operations, and technology program under section 172 
of that title—
HR 3550 EAS 
(A) $112,500,000 for fiscal year 2004; 
(B) $135,000,000 for fiscal year 2005; 
(C) $157,500,000 for fiscal year 2006; 
(D) $180,000,000 for fiscal year 2007; 
(E) $202,500,000 for fiscal year 2008; and 
(F) $225,000,000 for fiscal year 2009. 
(12) NATIONAL SCENIC BYWAYS PROGRAM.—For 
the national scenic byways program under section 
162 of that title— 
(A) $34,000,000 for fiscal year 2004; 
(B) $35,000,000 for fiscal year 2005; 
(C) $36,000,000 for fiscal year 2006; 
(D) $37,000,000 for fiscal year 2007; and 
(E) $39,000,000 for each of fiscal years 
2008 and 2009. 
(13) INFRASTRUCTURE PERFORMANCE AND MAIN-
TENANCE PROGRAM.—For carrying out the infrastruc-
ture performance and maintenance program under 
section 139 of that title $2,000,000,000 for fiscal year 
2004. 
(14) CONSTRUCTION
OF
FERRY
BOATS
AND 
FERRY
TERMINAL
FACILITIES.—For construction of 
ferry boats and ferry terminal facilities under section 
147 of that title, $60,000,000 for each of fiscal years 
2004 through 2009.
HR 3550 EAS 
(15) COMMONWEALTH OF PUERTO RICO HIGH-
WAY
PROGRAM.—For the Commonwealth of Puerto 
Rico highway program under section 173 of that 
title— 
(A) $140,000,000 for fiscal year 2004; 
(B) $145,000,000 for fiscal year 2005; 
(C) $149,000,000 for fiscal year 2006; 
(D) $154,000,000 for fiscal year 2007; 
(E) $160,000,000 for fiscal year 2008; and 
(F) $163,000,000 for fiscal year 2009. 
(16) PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO-
GRAM.—For the public-private partnerships pilot pro-
gram 
under 
section 
109(c)(3) 
of 
that 
title, 
$10,000,000 for each of fiscal years 2004 through 
2009. 
(17) DENALI ACCESS SYSTEM.—For the Denali 
Access System under section 309 of the Denali Com-
mission Act of 1998 (42 U.S.C. 3121 note; Public 
Law 105–277), $30,000,000 for each of fiscal years 
2004 through 2009. 
(18) 
DELTA
REGION
TRANPORTATION 
DEVELOPMENT
PROGRAM.—For planning and con-
struction activities authorized under the Delta Re-
gional Authority, $80,000,000 for each of fiscal years 
2004 through 2009.
HR 3550 EAS 
SEC. 1102. OBLIGATION CEILING. 
(a) GENERAL LIMITATION.—Subject to subsections (g) 
and (h), and notwithstanding any other provision of law, 
the obligations for Federal-aid highway and highway safety 
construction programs shall not exceed— 
(1) $33,643,326,300 for fiscal year 2004; 
(2) $37,900,000,000 for fiscal year 2005; 
(3) $39,100,000,000 for each of fiscal years 2006 
and 2007; 
(4) $39,400,000,000 for fiscal year 2008; and 
(5) $44,400,000,000 for fiscal year 2009. 
(b) EXCEPTIONS.—The limitations under subsection 
(a) shall not apply to obligations under or for— 
(1) section 125 of title 23, United States Code; 
(2) section 147 of the Surface Transportation As-
sistance Act of 1978 (23 U.S.C. 144 note; 92 Stat. 
2714); 
(3) section 9 of the Federal-Aid Highway Act of 
1981 (Public Law 97–134; 95 Stat. 1701); 
(4) subsections (b) and (j) of section 131 of the 
Surface Transportation Assistance Act of 1982 (Pub-
lic Law 97–424; 96 Stat. 2119); 
(5) subsections (b) and (c) of section 149 of the 
Surface Transportation and Uniform Relocation As-
sistance Act of 1987 (Public Law 100–17; 101 Stat. 
198);
HR 3550 EAS 
(6) sections 1103 through 1108 of the Intermodal 
Surface Transportation Efficiency Act of 1991 (Pub-
lic Law 102–240; 105 Stat. 2027); 
(7) section 157 of title 23, United States Code 
(as in effect on June 8, 1998); 
(8) section 105 of title 23, United States Code 
(as in effect for fiscal years 1998 through 2003, but 
only in an amount equal to $639,000,000 for each of 
those fiscal years); 
(9) Federal-aid highway programs for which ob-
ligation authority was made available under the 
Transportation Equity Act for the 21st Century (Pub-
lic Law 105–178; 112 Stat. 107) or subsequent public 
laws for multiple years or to remain available until 
used, but only to the extent that the obligation author-
ity has not lapsed or been used; and 
(10) section 105 of title 23, United States Code 
(but, for each of fiscal years 2004 through 2009, only 
in an amount equal to $439,000,000 per fiscal year). 
(c) DISTRIBUTION OF OBLIGATION AUTHORITY.—For 
each of fiscal years 2004 through 2009, the Secretary— 
(1) shall not distribute obligation authority pro-
vided by subsection (a) for the fiscal year for—
HR 3550 EAS 
visions of law described in paragraphs (1) 
through (9) of subsection (b) and sums author-
ized to be appropriated for section 105 of title 
23, United States Code, equal to the amount re-
ferred to in subsection (b)(10) for the fiscal 
year), less the aggregate of the amounts not dis-
tributed under paragraphs (1) and (2); 
(4) shall distribute the obligation authority pro-
vided by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2), for section 
14501 of title 40, United States Code, so that the 
amount of obligation authority available for that sec-
tion is equal to the amount determined by multi-
plying— 
(A) the ratio determined under paragraph 
(3); by 
(B) the sums authorized to be appropriated 
for that section for the fiscal year; 
(5) shall distribute among the States the obliga-
tion authority provided by subsection (a), less the ag-
gregate amounts not distributed under paragraphs (1) 
and (2), for each of the programs that are allocated 
by the Secretary under this Act and title 23, United 
States Code (other than to programs to which para-
graph (1) applies), by multiplying—
HR 3550 EAS 
(A) the ratio determined under paragraph 
(3); by 
(B) the amounts authorized to be appro-
priated for each such program for the fiscal year; 
and 
(6) shall distribute the obligation authority pro-
vided by subsection (a), less the aggregate amounts 
not distributed under paragraphs (1) and (2) and the 
amounts distributed under paragraphs (4) and (5), 
for Federal-aid highway and highway safety construc-
tion programs (other than the amounts apportioned 
for the equity bonus program, but only to the extent 
that the amounts apportioned for the equity bonus 
program for the fiscal year are greater than 
$439,000,000, and the Appalachian development high-
way system program) that are apportioned by the 
Secretary under this Act and title 23, United States 
Code, in the ratio that— 
(A) amounts authorized to be appropriated 
for the programs that are apportioned to each 
State for the fiscal year; bear to 
(B) the total of the amounts authorized to 
be appropriated for the programs that are ap-
portioned to all States for the fiscal year.
HR 3550 EAS 
(d) REDISTRIBUTION OF UNUSED OBLIGATION AU-
THORITY.—Notwithstanding subsection (c), the Secretary 
shall, after August 1 of each of fiscal years 2004 through 
2009— 
(1) revise a distribution of the obligation author-
ity made available under subsection (c) if an amount 
distributed cannot be obligated during that fiscal 
year; and 
(2) redistribute sufficient amounts to those States 
able to obligate amounts in addition to those pre-
viously distributed during that fiscal year, giving pri-
ority to those States having large unobligated bal-
ances of funds apportioned under sections 104 and 
144 of title 23, United States Code. 
(e) APPLICABILITY OF OBLIGATION LIMITATIONS TO 
TRANSPORTATION RESEARCH PROGRAMS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), obligation limitations imposed by sub-
section (a) shall apply to contract authority for trans-
portation research programs carried out under— 
(A) chapter 5 of title 23, United States 
Code; and 
(B) title II of this Act. 
(2) EXCEPTION.—Obligation authority made 
available under paragraph (1) shall—
HR 3550 EAS 
(A) remain available for a period of 3 fiscal 
years; and 
(B) be in addition to the amount of any 
limitation imposed on obligations for Federal- 
aid highway and highway safety construction 
programs for future fiscal years. 
(f) REDISTRIBUTION
OF
CERTAIN
AUTHORIZED 
FUNDS.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of distribution of obligation authority under 
subsection (c) for each of fiscal years 2004 through 
2009, the Secretary shall distribute to the States any 
funds that— 
(A) are authorized to be appropriated for 
the fiscal year for Federal-aid highway pro-
grams; and 
(B) the Secretary determines will not be al-
located to the States, and will not be available 
for obligation, in the fiscal year due to the impo-
sition of any obligation limitation for the fiscal 
year. 
(2) RATIO.—Funds shall be distributed under 
paragraph (1) in the same ratio as the distribution 
of obligation authority under subsection (c)(6).
HR 3550 EAS 
(3) AVAILABILITY.—Funds distributed under 
paragraph (1) shall be available for any purpose de-
scribed in section 133(b) of title 23, United States 
Code. 
(g) SPECIAL RULE.—Obligation authority distributed 
for a fiscal year under subsection (c)(4) for the provision 
specified in subsection (c)(4) shall— 
(1) remain available until used for obligation of 
funds for that provision; and 
(2) be in addition to the amount of any limita-
tion imposed on obligations for Federal-aid highway 
and highway safety construction programs for future 
fiscal years. 
(h) ADJUSTMENT IN OBLIGATION LIMIT.— 
(1) IN GENERAL.—A limitation on obligations 
imposed by subsection (a) for a fiscal year shall be 
adjusted by an amount equal to the amount deter-
mined in accordance with section 251(b)(1)(B) of the 
Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 901(b)(1)(B)) for the fiscal year. 
(2) DISTRIBUTION.—An adjustment under para-
graph (1) shall be distributed in accordance with this 
section. 
(i) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRA-
TIVE EXPENSES.—Notwithstanding any other provision of
HR 3550 EAS 
law, the total amount of all obligations under section 104(a) 
of title 23, United States Code, shall not exceed— 
(1) $450,000,000 for fiscal year 2004; 
(2) $465,000,000 for fiscal year 2005; 
(3) $480,000,000 for fiscal year 2006; 
(4) $495,000,000 for fiscal year 2007; 
(5) $510,000,000 for fiscal year 2008; and 
(6) $525,000,000 for fiscal year 2009. 
(j) NATIONAL HIGHWAY SYSTEM COMPONENT.—Sec-
tion 104(b)(1) of title 23, United States Code, is amended 
by striking ‘‘$36,400,000’’ and insert ‘‘$50,000,000’’. 
SEC. 1103. APPORTIONMENTS. 
(a) ADMINISTRATIVE EXPENSES.— 
(1) IN
GENERAL.—Section 104 of title 23, 
United States Code, is amended by striking subsection 
(a) and inserting the following: 
‘‘(a) ADMINISTRATIVE EXPENSES.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) to be made available 
to the Secretary of Transportation for administrative 
expenses of the Federal Highway Administration— 
‘‘(A) $450,000,000 for fiscal year 2004; 
‘‘(B) $465,000,000 for fiscal year 2005; 
‘‘(C) $480,000,000 for fiscal year 2006;
HR 3550 EAS 
‘‘(D) $495,000,000 for fiscal year 2007; 
‘‘(E) $510,000,000 for fiscal year 2008; and 
‘‘(F) $525,000,000 for fiscal year 2009. 
‘‘(2) PURPOSES.—The funds authorized by this 
subsection shall be used— 
‘‘(A) to administer the provisions of law to 
be financed from appropriations for the Federal- 
aid highway program and programs authorized 
under chapter 2; and 
‘‘(B) to make transfers of such sums as the 
Secretary determines to be appropriate to the 
Appalachian Regional Commission for adminis-
trative activities associated with the Appa-
lachian development highway system. 
‘‘(3) AVAILABILITY.—The funds made available 
under paragraph (1) shall remain available until ex-
pended.’’. 
(2) CONFORMING AMENDMENTS.—Section 104 of 
title 23, United States Code, is amended— 
(A) in the matter preceding paragraph (1) 
of subsection (b), by striking ‘‘the deduction au-
thorized by subsection (a) and’’; 
(B) in the first sentence of subsection (e)(1), 
by striking ‘‘, and also’’ and all that follows 
through ‘‘this section’’; and
HR 3550 EAS 
(C) in subsection (i), by striking ‘‘deducted’’ 
and inserting ‘‘made available’’. 
(b) METROPOLITAN PLANNING.—Section 104(f) of title 
23, United States Code, is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) SET-ASIDE.—On October 1 of each fiscal 
year, the Secretary shall set aside 1.5 percent of the 
funds authorized to be appropriated for the Interstate 
maintenance, national highway system, surface trans-
portation, congestion mitigation and air quality im-
provement, highway safety improvement, and high-
way bridge programs authorized under this title to 
carry out the requirements of section 134.’’; 
(2) in paragraph (2), by striking ‘‘per centum’’ 
and inserting ‘‘percent’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘The funds’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—The funds’’; and 
(B) by striking ‘‘These funds’’ and all that 
follows and inserting the following: 
‘‘(B) UNUSED FUNDS.—Any funds that are 
not used to carry out section 134 may be made 
available by a metropolitan planning organiza-
HR 3550 EAS 
tion to the State to fund activities under section 
135.’’; and 
(4) by adding at the end the following: 
‘‘(6) FEDERAL SHARE.—Funds apportioned to a 
State under this subsection shall be matched in ac-
cordance with section 120(b) unless the Secretary de-
termines that the interests of the Federal-aid highway 
program would be best served without the match.’’. 
(c) ALASKA HIGHWAY.—Section 104(b)(1)(A) of title 
23, United States Code, is amended by striking ‘‘1998 
through 2002’’ and inserting ‘‘2004 through 2009’’. 
SEC. 1104. EQUITY BONUS PROGRAM. 
(a) IN GENERAL.—Section 105 of title 23, United 
States Code, is amended to read as follows: 
‘‘§ 105. Equity bonus program 
‘‘(a) PROGRAM.— 
‘‘(1) IN
GENERAL.—Subject to subsections (c) 
and (d), for each of fiscal years 2004 through 2009, 
the Secretary shall allocate among the States amounts 
sufficient to ensure that no State receives a percentage 
of the total apportionments for the fiscal year for the 
programs specified in paragraph (2) that is less than 
the percentage calculated under subsection (b). 
‘‘(2) SPECIFIC
PROGRAMS.—The programs re-
ferred to in subsection (a) are—
HR 3550 EAS 
‘‘(A) the Interstate maintenance program 
under section 119; 
‘‘(B) the national highway system program 
under section 103; 
‘‘(C) the bridge program under section 144; 
‘‘(D) the surface transportation program 
under section 133; 
‘‘(E) the highway safety improvement pro-
gram under section 148; 
‘‘(F) the congestion mitigation and air 
quality improvement program under section 149; 
‘‘(G) 
metropolitan 
planning 
programs 
under section 104(f) (other than planning pro-
grams funded by amounts provided under the eq-
uity bonus program under this section); 
‘‘(H) the infrastructure performance and 
maintenance program under section 139; 
‘‘(I) the equity bonus program under this 
section; 
‘‘(J) the Appalachian development highway 
system program under subtitle IV of title 40; 
‘‘(K) the recreational trails program under 
section 206; 
‘‘(L) the safe routes to schools program 
under section 150; and
HR 3550 EAS 
of less than $35,000, as reported in that decen-
nial census, the greater of— 
‘‘(i) the percentage under paragraph 
(1); or 
‘‘(ii) the average percentage of the 
State’s share of total apportionments for the 
period of fiscal years 1998 through 2003 for 
the programs specified in paragraph (2). 
‘‘(2) SPECIFIC
PROGRAMS.—The programs re-
ferred to in paragraph (1)(B)(ii) are (as in effect on 
the day before the date of enactment of the Safe, Ac-
countable, Flexible, and Efficient Transportation Eq-
uity Act of 2004)— 
‘‘(A) the Interstate maintenance program 
under section 119; 
‘‘(B) the national highway system program 
under section 103; 
‘‘(C) the bridge program under section 144; 
‘‘(D) the surface transportation program 
under section 133; 
‘‘(E) the recreational trails program under 
section 206; 
‘‘(F) the high priority projects program 
under section 117;
HR 3550 EAS 
‘‘(G) the minimum guarantee provided 
under this section; 
‘‘(H) revenue aligned budget authority 
amounts provided under section 110; 
‘‘(I) the congestion mitigation and air qual-
ity improvement program under section 149; 
‘‘(J) the Appalachian development highway 
system program under subtitle IV of title 40; and 
‘‘(K) 
metropolitan 
planning 
programs 
under section 104(f). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) MINIMUM
COMBINED
ALLOCATION.—For 
each fiscal year, before making the allocations under 
subsection (a)(1), the Secretary shall allocate among 
the States amounts sufficient to ensure that no State 
receives a combined total of amounts allocated under 
subsection (a)(1), apportionments for the programs 
specified in subsection (a)(2), and amounts allocated 
under this subsection, that is less than 110 percent of 
the average for fiscal years 1998 through 2003 of the 
annual apportionments for the State for all programs 
specified in subsection (b)(2). 
‘‘(2) 
NO
NEGATIVE
ADJUSTMENT.—Notwith-
standing subsection (d), no negative adjustment shall
HR 3550 EAS 
be made under subsection (a)(1) to the apportionment 
of any State. 
‘‘(3) MINIMUM SHARE OF TAX PAYMENTS.—Not-
withstanding subsection (d), for each fiscal year, the 
Secretary shall allocate among the States amounts 
sufficient to ensure that no State receives a percentage 
of apportionments for the fiscal year for the programs 
specified in subsection (a)(2) that is less than 90.5 
percent of the percentage share of the State of esti-
mated tax payments attributable to highway users in 
the State paid into the Highway Trust Fund (other 
than the Mass Transit Account) in the most recent 
fiscal year for which data are available. 
‘‘(d) LIMITATION ON ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3) of subsection (c), no State shall re-
ceive, for any fiscal year, additional amounts under 
subsection (a)(1) if— 
‘‘(A) the total apportionments of the State 
for the fiscal year for the programs specified in 
subsection (a)(2); exceed 
‘‘(B) the percentage of the average, for the 
period of fiscal years 1998 through 2003, of the 
annual apportionments of the State for all pro-
HR 3550 EAS 
grams specified in subsection (b)(2), as specified 
in paragraph (2). 
‘‘(2) PERCENTAGES.—The percentages referred to 
in paragraph (1)(B) are— 
‘‘(A) for fiscal year 2004, 120 percent; 
‘‘(B) for fiscal year 2005, 130 percent; 
‘‘(C) for fiscal year 2006, 134 percent; 
‘‘(D) for fiscal year 2007, 137 percent; 
‘‘(E) for fiscal year 2008, 145 percent; and 
‘‘(F) for fiscal year 2009, 250 percent. 
‘‘(e) PROGRAMMATIC DISTRIBUTION OF FUNDS.—The 
Secretary shall apportion the amounts made available 
under this section so that the amount apportioned to each 
State under this section for each program referred to in sub-
paragraphs (A) through (G) of subsection (a)(2) is equal 
to the amount determined by multiplying the amount to 
be apportioned under this section by the proportion that— 
‘‘(1) the amount of funds apportioned to each 
State for each program referred to in subparagraphs 
(A) through (G) of subsection (a)(2) for a fiscal year; 
bears to 
‘‘(2) the total amount of funds apportioned to 
each State for all such programs for the fiscal year.
HR 3550 EAS 
‘‘(f) METRO PLANNING SET ASIDE.—Notwithstanding 
section 104(f), no set aside provided for under that section 
shall apply to funds allocated under this section. 
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) such sums as 
are necessary to carry out this section for each of fiscal 
years 2004 through 2009.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The analysis for subchapter I of chapter 1 of 
title 23, United States Code, is amended by striking 
the item relating to section 105 and inserting the fol-
lowing: 
‘‘105. Equity bonus program.’’ 
(2) Section 104(a)(1) of title 23, United States 
Code, is amended by striking ‘‘minimum guarantee’’ 
and inserting ‘‘equity bonus’’. 
SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY. 
Section 110 of title 23, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraphs (1) and (2), by striking 
‘‘2000’’ and inserting ‘‘2006’’; 
(B) in paragraph (1), by inserting ‘‘(as in 
effect on September 30, 2002)’’ after ‘‘(2 U.S.C. 
901(b)(2)(B)(ii)(I)(cc))’’; and
HR 3550 EAS 
(C) in paragraph (2)— 
(i) by striking ‘‘If the amount’’ and in-
serting the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), if the amount’’; 
(ii) by inserting ‘‘(as in effect on Sep-
tember 
30, 
2002)’’ 
after 
‘‘(2 
U.S.C. 
901(b)(1)(B)(ii)(I)(cc)’’; 
(iii) by striking ‘‘the succeeding’’ and 
inserting ‘‘that’’; 
(iv) by striking ‘‘and the motor carrier 
safety grant program’’; and 
(v) by adding at the end the following: 
‘‘(B) LIMITATION.—No reduction under sub-
paragraph (A) shall be made for a fiscal year if, 
as of October 1 of the fiscal year, the cash bal-
ance in the Highway Trust Fund (other than the 
Mass Transit Account) exceeds $6,000,000,000.’’; 
(2) in subsection (b)(1), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) the sums authorized to be appropriated 
from the Highway Trust Fund (other than the 
Mass Transit Account) for each of the Federal- 
aid highway and highway safety construction 
programs (other than the equity bonus program)
HR 3550 EAS 
and for which funds are allocated from the High-
way Trust Fund by the Secretary under this title 
and the Safe, Accountable, Flexible, and Effi-
cient Transportation Equity Act of 2004; bears 
to’’; 
(3) in subsection (c), by inserting ‘‘the highway 
safety improvement program,’’ after ‘‘the surface 
transportation program,’’; and 
(4) by striking subsections (e), (f), and (g). 
Subtitle B—New Programs 
SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTE-
NANCE PROGRAM. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by inserting after sec-
tion 138 the following: 
‘‘§ 139. Infrastructure performance and maintenance 
program 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish 
and implement an infrastructure performance and mainte-
nance program in accordance with this section. 
‘‘(b) ELIGIBLE PROJECTS.—A State may obligate 
funds allocated to the State under this section only for 
projects eligible under the Interstate maintenance program 
under section 119, the National Highway System program 
under section 103, the surface transportation program
HR 3550 EAS 
under section 133, the highway safety improvement pro-
gram under section 148, the highway bridge program under 
section 144, and the congestion mitigation and air quality 
improvement program under section 149 that will— 
‘‘(1) preserve, maintain, or otherwise extend, in 
a cost-effective manner, the useful life of existing high-
way infrastructure elements; or 
‘‘(2) provide operational improvements (includ-
ing traffic management and intelligent transportation 
system strategies and limited capacity enhancements) 
at points of recurring highway congestion. 
‘‘(c) PERIOD OF AVAILABILITY.— 
‘‘(1) OBLIGATION WITHIN 180 DAYS.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
State under this section shall be obligated by the 
State not later than 180 days after the date of 
apportionment. 
‘‘(B) UNOBLIGATED FUNDS.—Any amounts 
that remain unobligated at the end of that pe-
riod shall be allocated in accordance with sub-
section (d). 
‘‘(2) OBLIGATION BY END OF FISCAL YEAR.— 
‘‘(A) IN GENERAL.—All funds allocated or 
reallocated under this section shall remain avail-
HR 3550 EAS 
able for obligation until the last day of the fiscal 
year for which the funds are apportioned. 
‘‘(B) UNOBLIGATED FUNDS.—Any amounts 
allocated that remain unobligated at the end of 
the fiscal year shall lapse. 
‘‘(d) REDISTRIBUTION OF ALLOCATED FUNDS AND OB-
LIGATION AUTHORITY.— 
‘‘(1) IN GENERAL.—On the date that is 180 days 
after the date of allocation, or as soon thereafter as 
practicable, for each fiscal year, the Secretary shall— 
‘‘(A) withdraw— 
‘‘(i) any funds allocated to a State 
under this section that remain unobligated; 
and 
‘‘(ii) an equal amount of obligation 
authority provided for the use of the funds 
in accordance with section 1101(13) of the 
Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2004; and 
‘‘(B) reallocate the funds and redistribute 
the obligation authority to those States that— 
‘‘(i) have fully obligated all amounts 
allocated under this section for the fiscal 
year; and
HR 3550 EAS 
‘‘(ii) demonstrate that the State is able 
to obligate additional amounts for projects 
eligible under this section before the end of 
the fiscal year. 
‘‘(2) EQUITY BONUS.—The calculation and dis-
tribution of funds under section 105 shall be adjusted 
as a result of the allocation of funds under this sub-
section. 
‘‘(e) FEDERAL SHARE PAYABLE.—The Federal share 
payable for a project funded under this section shall be de-
termined in accordance with section 120.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 1 of title 23, United States Code, is amended by 
adding after the item relating to section 138 the following: 
‘‘139. Infrastructure performance and maintenance program.’’. 
SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYS-
TEM. 
(a) DECLARATION OF POLICY.—Section 101 of title 23, 
United States Code, is amended— 
(1) by striking ‘‘(b) It is hereby declared to be’’ 
and inserting the following: 
‘‘(b) DECLARATION OF POLICY.— 
‘‘(1) ACCELERATION OF CONSTRUCTION OF FED-
ERAL-AID HIGHWAY SYSTEMS.—Congress declares that 
it is’’;
HR 3550 EAS 
(2) in the second paragraph, by striking ‘‘It is 
hereby declared’’ and inserting the following: 
‘‘(2) COMPLETION
OF
INTERSTATE
SYSTEM.— 
Congress declares’’; and 
(3) by striking the last paragraph and inserting 
the following: 
‘‘(3) TRANSPORTATION
NEEDS
OF
21ST
CEN-
TURY.—Congress declares that— 
‘‘(A) it is in the national interest to pre-
serve and enhance the surface transportation sys-
tem to meet the needs of the United States for the 
21st Century; 
‘‘(B) the current urban and long distance 
personal travel and freight movement demands 
have surpassed the original forecasts and travel 
demand patterns are expected to change; 
‘‘(C) continued planning for and investment 
in surface transportation is critical to ensure the 
surface transportation system adequately meets 
the changing travel demands of the future; 
‘‘(D) among the foremost needs that the sur-
face transportation system must meet to provide 
for a strong and vigorous national economy are 
safe, efficient, and reliable—
HR 3550 EAS 
‘‘(i) national and interregional per-
sonal mobility (including personal mobility 
in rural and urban areas) and reduced con-
gestion; 
‘‘(ii) flow of interstate and inter-
national commerce and freight transpor-
tation; and 
‘‘(iii) travel movements essential for 
national security; 
‘‘(E) special emphasis should be devoted to 
providing safe and efficient access for the type 
and size of commercial and military vehicles 
that access designated National Highway System 
intermodal freight terminals; 
‘‘(F) it is in the national interest to seek 
ways to eliminate barriers to transportation in-
vestment created by the current modal structure 
of transportation financing; 
‘‘(G) the connection between land use and 
infrastructure is significant; 
‘‘(H) transportation should play a signifi-
cant role in promoting economic growth, improv-
ing the environment, and sustaining the quality 
of life; and
HR 3550 EAS 
‘‘(I) the Secretary should take appropriate 
actions to preserve and enhance the Interstate 
System to meet the needs of the 21st Century.’’. 
(b) NATIONAL SURFACE TRANSPORTATION SYSTEM 
STUDY.— 
(1) IN GENERAL.—The Secretary shall— 
(A) conduct a complete investigation and 
study of the current condition and future needs 
of the surface transportation system of the 
United States, including— 
(i) the National Highway System; 
(ii) the Interstate System; 
(iii) the strategic highway network; 
(iv) congressional high priority cor-
ridors; 
(v) intermodal connectors; 
(vi) freight facilities; 
(vii) navigable waterways; 
(viii) mass transportation; 
(ix) freight and intercity passenger 
rail infrastructure and facilities; and 
(x) surface access to airports; and 
(B) develop a conceptual plan, with alter-
native approaches, for the future to ensure that 
the surface transportation system will continue
HR 3550 EAS 
to serve the needs of the United States, including 
specific recommendations regarding design and 
operational standards, Federal policies, and leg-
islative changes. 
(2) SPECIFIC ISSUES.—In conducting the inves-
tigation and study, the Secretary shall specifically 
address— 
(A) the current condition and performance 
of the Interstate System (including the physical 
condition of bridges and pavements and oper-
ational characteristics and performance), relying 
primarily on existing data sources; 
(B) the future of the Interstate System, 
based on a range of legislative and policy ap-
proaches for 15-, 30-, and 50-year time periods; 
(C) the expected demographics and business 
uses that impact the surface transportation sys-
tem; 
(D) the expected use of the surface transpor-
tation system, including the effects of changing 
vehicle types, modes of transportation, fleet size 
and weights, and traffic volumes; 
(E) desirable design policies and standards 
for future improvements of the surface transpor-
HR 3550 EAS 
tation 
system, 
including 
additional 
access 
points; 
(F) the identification of urban, rural, na-
tional, and interregional needs for the surface 
transportation system; 
(G) the potential for expansion, upgrades, 
or other changes to the surface transportation 
system, including— 
(i) deployment of advanced materials 
and intelligent technologies; 
(ii) critical multistate, urban, and 
rural corridors needing capacity, safety, 
and operational enhancements; 
(iii) improvements to intermodal link-
ages; 
(iv) security and military deployment 
enhancements; 
(v) strategies to enhance asset preserva-
tion; and 
(vi) implementation strategies; 
(H) the improvement of emergency pre-
paredness and evacuation using the surface 
transportation system, including— 
(i) examination of the potential use of 
all modes of the surface transportation sys-
HR 3550 EAS 
tem in the safe and efficient evacuation of 
citizens during times of emergency; 
(ii) identification of the location of 
critical bottlenecks; and 
(iii) development of strategies to im-
prove system redundancy, especially in 
areas with a high potential for terrorist at-
tacks; 
(I) alternatives for addressing environ-
mental concerns associated with the future devel-
opment of the surface transportation system; 
(J) the evaluation and assessment of the 
current and future capabilities for conducting 
system-wide real-time performance data collec-
tion and analysis, traffic monitoring, and trans-
portation systems operations and management; 
and 
(K) a range of policy and legislative alter-
natives for addressing future needs for the sur-
face transportation system, including funding 
needs and potential approaches to provide funds. 
(3) TECHNICAL
ADVISORY
COMMITTEE.—The 
Secretary shall establish a technical advisory com-
mittee, in a manner consistent with the Federal Advi-
HR 3550 EAS 
sory Committee Act (5 U.S.C. App.), to collect and 
evaluate technical input from— 
(A) the Department of Defense; 
(B) appropriate Federal, State, and local 
officials with responsibility for transportation; 
(C) appropriate State and local elected offi-
cials; 
(D) transportation and trade associations; 
(E) emergency management officials; 
(F) freight providers; 
(G) the general public; and 
(H) other entities and persons determined 
appropriate by the Secretary to ensure a diverse 
range of views. 
(4) REPORT.—Not later than 4 years after the 
date of enactment of this Act, the Secretary shall sub-
mit to the Committee on Environment and Public 
Works of the Senate and the Committee on Transpor-
tation and Infrastructure of the House of Representa-
tives, and make readily available to the public, a re-
port on the results of the investigation and study con-
ducted under this subsection.
HR 3550 EAS 
SEC. 
1203. 
FREIGHT 
TRANSPORTATION 
GATEWAYS; 
FREIGHT INTERMODAL CONNECTIONS. 
(a) FREIGHT TRANSPORTATION GATEWAYS.—Chapter 
3 of title 23, United States Code, is amended by adding 
at the end the following: 
‘‘§ 325. Freight transportation gateways 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight transportation gateways program to 
improve productivity, security, and safety of freight 
transportation gateways, while mitigating congestion 
and community impacts in the area of the gateways. 
‘‘(2) PURPOSES.—The purposes of the freight 
transportation gateways program shall be— 
‘‘(A) to facilitate and support multimodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
transportation gateways and mitigate the im-
pact of congestion on the environment in the 
area of the gateways; 
‘‘(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight transportation gateways; 
‘‘(C) to encourage adoption of new financ-
ing strategies to leverage State, local, and pri-
HR 3550 EAS 
vate investment in freight transportation gate-
ways; 
‘‘(D) to facilitate access to intermodal 
freight transfer facilities; and 
‘‘(E) to increase economic efficiency by fa-
cilitating the movement of goods. 
‘‘(b) STATE RESPONSIBILITIES.— 
‘‘(1) PROJECT
DEVELOPMENT
PROCESS.—Each 
State, in coordination with metropolitan planning 
organizations, shall ensure that intermodal freight 
transportation, trade facilitation, and economic devel-
opment needs are adequately considered and fully in-
tegrated into the project development process, includ-
ing transportation planning through final design and 
construction of freight-related transportation projects. 
‘‘(2) 
FREIGHT
TRANSPORTATION
COORDI-
NATOR.— 
‘‘(A) IN GENERAL.—Each State shall des-
ignate a freight transportation coordinator. 
‘‘(B) DUTIES.—The coordinator shall— 
‘‘(i) foster public and private sector 
collaboration needed to implement complex 
solutions to freight transportation and 
freight transportation gateway problems, 
including—
HR 3550 EAS 
‘‘(I) coordination of metropolitan 
and statewide transportation activities 
with trade and economic interests; 
‘‘(II) 
coordination 
with 
other 
States, agencies, and organizations to 
find regional solutions to freight trans-
portation problems; and 
‘‘(III) coordination with local of-
ficials of the Department of Defense 
and the Department of Homeland Se-
curity, and with other organizations, 
to develop regional solutions to mili-
tary and homeland security transpor-
tation needs; and 
‘‘(ii) promote programs that build pro-
fessional capacity to better plan, coordinate, 
integrate, and understand freight transpor-
tation needs for the State. 
‘‘(c) INNOVATIVE FINANCE STRATEGIES.— 
‘‘(1) IN GENERAL.—States and localities are en-
couraged to adopt innovative financing strategies for 
freight transportation gateway improvements, includ-
ing— 
‘‘(A) new user fees;
HR 3550 EAS 
‘‘(B) modifications to existing user fees, in-
cluding trade facilitation charges; 
‘‘(C) revenue options that incorporate pri-
vate sector investment; and 
‘‘(D) a blending of Federal-aid and innova-
tive finance programs. 
‘‘(2) TECHNICAL
ASSISTANCE.—The Secretary 
shall provide technical assistance to States and local-
ities with respect to the strategies. 
‘‘(d) 
INTERMODAL
FREIGHT
TRANSPORTATION 
PROJECTS.— 
‘‘(1) USE OF SURFACE TRANSPORTATION PRO-
GRAM FUNDS.—A State may obligate funds appor-
tioned to the State under section 104(b)(3) for pub-
licly-owned intermodal freight transportation projects 
that provide community and highway benefits by ad-
dressing economic, congestion, system reliability, secu-
rity, safety, or environmental issues associated with 
freight transportation gateways. 
‘‘(2) ELIGIBLE PROJECTS.—A project eligible for 
funding under this section— 
‘‘(A) may include publicly-owned inter-
modal freight transfer facilities, access to the fa-
cilities, and operational improvements for the fa-
cilities (including capital investment for intel-
HR 3550 EAS 
ligent 
transportation 
systems), 
except 
that 
projects located within the boundaries of port 
terminals shall only include the surface trans-
portation infrastructure modifications necessary 
to facilitate direct intermodal interchange, trans-
fer, and access into and out of the port; and 
‘‘(B) may involve the combining of private 
and public funds.’’. 
(b) ELIGIBILITY FOR SURFACE TRANSPORTATION PRO-
GRAM FUNDS.—Section 133(b) of title 23, United States 
Code, is amended by inserting after paragraph (11) the fol-
lowing: 
‘‘(12) Intermodal freight transportation projects 
in accordance with section 325(d)(2).’’. 
(c) FREIGHT INTERMODAL CONNECTIONS TO NHS.— 
Section 103(b) of title 23, United States Code, is amended 
by adding at the end the following: 
‘‘(7) FREIGHT
INTERMODAL
CONNECTIONS
TO 
THE NHS.— 
‘‘(A) FUNDING
SET-ASIDE.—Of the funds 
apportioned to a State for each fiscal year under 
section 104(b)(1), an amount determined in ac-
cordance with subparagraph (B) shall only be 
available to the State to be obligated for projects 
on—
HR 3550 EAS 
‘‘(i) National Highway System routes 
connecting to intermodal freight terminals 
identified according to criteria specified in 
the report to Congress entitled ‘Pulling To-
gether: The National Highway System and 
its Connections to Major Intermodal Termi-
nals’ dated May 24, 1996, referred to in 
paragraph (1), and any modifications to 
the connections that are consistent with 
paragraph (4); 
‘‘(ii) strategic highway network con-
nectors to strategic military deployment 
ports; and 
‘‘(iii) projects to eliminate railroad 
crossings or make railroad crossing im-
provements. 
‘‘(B) DETERMINATION
OF
AMOUNT.—The 
amount of funds for each State for a fiscal year 
that shall be set aside under subparagraph (A) 
shall be equal to the greater of— 
‘‘(i) the product obtained by multi-
plying— 
‘‘(I) the total amount of funds ap-
portioned to the State under section 
104(b)(1); by
HR 3550 EAS 
‘‘(II) the percentage of miles that 
routes specified in subparagraph (A) 
constitute of the total miles on the Na-
tional Highway System in the State; 
or 
‘‘(ii) 2 percent of the annual appor-
tionment to the State of funds under 
104(b)(1). 
‘‘(C) EXEMPTION
FROM
SET-ASIDE.—For 
any fiscal year, a State may obligate the funds 
otherwise set aside by this paragraph for any 
project that is eligible under paragraph (6) and 
is located in the State on a segment of the Na-
tional Highway System specified in paragraph 
(2), if the State certifies and the Secretary con-
curs that— 
‘‘(i) the designated National Highway 
System intermodal connectors described in 
subparagraph (A) are in good condition 
and provide an adequate level of service for 
military vehicle and civilian commercial 
vehicle use; and 
‘‘(ii) significant needs on the des-
ignated National Highway System inter-
HR 3550 EAS 
modal connectors are being met or do not 
exist.’’. 
(d) FEDERAL SHARE PAYABLE.—Section 120 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘(m) INCREASED FEDERAL SHARE
FOR CONNEC-
TORS.—In the case of a project to support a National High-
way System intermodal freight connection or strategic high-
way network connector to a strategic military deployment 
port described in section 103(b)(7), except as otherwise pro-
vided in section 120, the Federal share of the total cost of 
the project shall be 90 percent.’’. 
(e) LENGTH LIMITATIONS.—Section 31111(e) of title 
49, United States Code, is amended— 
(1) by striking ‘‘The’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The’’; and 
(2) by adding at the end the following: 
‘‘(2) LENGTH LIMITATIONS.—In the interests of 
economic competitiveness, security, and intermodal 
connectivity, not later than 3 years after the date of 
enactment of this paragraph, States shall update the 
list of those qualifying highways to include— 
‘‘(A) strategic highway network connectors 
to strategic military deployment ports; and
HR 3550 EAS 
‘‘(B) National Highway System intermodal 
freight connections serving military and com-
mercial truck traffic going to major intermodal 
terminals 
as 
described 
in 
section 
103(b)(7)(A)(i).’’. 
(f) CONFORMING AMENDMENT.—The analysis of chap-
ter 3 of title 23, United States Code, is amended by adding 
at the end the following: 
‘‘325. Freight transportation gateways.’’. 
SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY 
TERMINAL AND MAINTENANCE FACILITIES; 
COORDINATION OF FERRY CONSTRUCTION 
AND MAINTENANCE. 
(a) IN GENERAL.—Section 147 of title 23, United 
States Code, is amended to read as follows: 
‘‘§ 147. Construction of ferry boats and ferry terminal 
and maintenance facilities; coordination 
of ferry construction and maintenance 
‘‘(a) CONSTRUCTION OF FERRY BOATS AND FERRY 
TERMINAL FACILITIES.— 
‘‘(1) IN
GENERAL.—The Secretary shall carry 
out a program for construction of ferry boats and 
ferry terminal facilities in accordance with section 
129(c). 
‘‘(2) FEDERAL SHARE.—The Federal share of the 
cost of construction of ferry boats and ferry terminals
HR 3550 EAS 
and maintenance facilities under this subsection shall 
be 80 percent. 
‘‘(3) ALLOCATION
OF
FUNDS.—The Secretary 
shall give priority in the allocation of funds under 
this subsection to those ferry systems, and public enti-
ties responsible for developing ferries, that— 
‘‘(A) carry the greatest number of pas-
sengers and vehicles; 
‘‘(B) carry the greatest number of pas-
sengers in passenger-only service; or 
‘‘(C) provide critical access to areas that 
are not well-served by other modes of surface 
transportation. 
‘‘(b) NON-CONTRACT AUTHORITY AUTHORIZATION OF 
APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other 
than the Mass Transit Account) $60,000,000 for each 
fiscal year to carry out this section. 
‘‘(2) 
AVAILABILITY.—Notwithstanding 
section 
118(a), funds made available under paragraph (1) 
shall be available in advance of an annual appropria-
tion.’’. 
(b) CONFORMING AMENDMENTS.—
HR 3550 EAS 
(1) The analysis for subchapter I of chapter 1 of 
title 23, United States Code, is amended by striking 
the item relating to section 147 and inserting the fol-
lowing: 
‘‘147. Construction of ferry boats and ferry terminal and maintenance facilities.’’. 
(2) Section 1064 of the Intermodal Surface 
Transportation Efficiency Act of 1991 (105 Stat. 
2005) is repealed. 
SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN 
INTERSTATE HIGHWAY. 
(a) DESIGNATION.—Interstate Highway 86 in the 
State of New York, extending from the Pennsylvania border 
near Lake Erie through Orange County, New York, shall 
be known and designated as the ‘‘Daniel Patrick Moynihan 
Interstate Highway’’. 
(b) REFERENCES.—Any reference in a law, map, regu-
lation, document, paper, or other record of the United 
States to the highway referred to in subsection (a) shall be 
deemed to be a reference to the Daniel Patrick Moynihan 
Interstate Highway. 
SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY 
CONSTRUCTION COSTS. 
(a) COLLECTION OF DATA.— 
(1) IN GENERAL.—The Administrator of the Fed-
eral Highway Administration (referred to in this sec-
tion as the ‘‘Administrator’’) shall collect from States
HR 3550 EAS 
any bid price data that is necessary to make State- 
by-State comparisons of highway construction costs. 
(2) DATA
REQUIRED.—In determining which 
data to collect and the procedures for collecting data, 
the Administrator shall take into account the data 
collection deficiencies identified in the report pre-
pared by the General Accounting Office numbered 
GAO–04–113R. 
(b) REPORT.— 
(1) IN GENERAL.—The Administrator shall sub-
mit to Congress an annual report on the bid price 
data collected under subsection (a). 
(2) INCLUSIONS.—The report shall include— 
(A) State-by-State comparisons of highway 
construction costs for the previous fiscal year 
(including the cost to construct a 1-mile road 
segment of a standard design, as determined by 
the Administrator); and 
(B) a description of the competitive bidding 
procedures used in each State; and 
(C) a determination by Administrator as to 
whether the competitive bidding procedures de-
scribed under subparagraph (B) are effective.
HR 3550 EAS 
Subtitle C—Finance 
SEC. 1301. FEDERAL SHARE. 
Section 120 of title 23, United States Code, is amend-
ed— 
(1) in subsection (a), by striking paragraph (1) 
and inserting the following: 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this chapter, the Federal share payable on account 
of any project on the Interstate System (including a 
project to add high occupancy vehicle lanes and a 
project to add auxiliary lanes but excluding a project 
to add any other lanes) shall be 90 percent of the total 
cost of the project.’’; 
(2) in subsection (b)— 
(A) by striking ‘‘Except as otherwise’’ and 
inserting the following: 
‘‘(1) IN GENERAL.—Except as otherwise’’; 
(B) by striking ‘‘shall be—’’ and all that 
follows and inserting ‘‘shall be 80 percent of the 
cost of the project.’’; and 
(C) by adding at the end the following: 
‘‘(2) 
STATE-DETERMINED
LOWER
FEDERAL 
SHARE.—In the case of any project subject to this 
subsection, a State may determine a lower Federal
HR 3550 EAS 
share than the Federal share determined under para-
graph (1).’’; 
(3) by striking subsection (d) and inserting the 
following: 
‘‘(d) INCREASED FEDERAL SHARE.— 
‘‘(1) IN GENERAL.—The Federal share payable 
under subsection (a) or (b) may be increased for 
projects and activities in each State in which is lo-
cated— 
‘‘(A) nontaxable Indian land; 
‘‘(B) public land (reserved or unreserved); 
‘‘(C) a national forest; or 
‘‘(D) a national park or monument. 
‘‘(2) AMOUNT.— 
‘‘(A) IN GENERAL.—The Federal share for 
States described in paragraph (1) shall be in-
creased by a percentage of the remaining cost 
that— 
‘‘(i) is equal to the percentage that— 
‘‘(I) the area of all land described 
in paragraph (1) in a State; bears to 
‘‘(II) the total area of the State; 
but
HR 3550 EAS 
‘‘(ii) does not exceed 95 percent of the 
total cost of the project or activity for which 
the Federal share is provided. 
‘‘(B) ADJUSTMENT.—The Secretary shall 
adjust the Federal share for States under sub-
paragraph (A) as the Secretary determines nec-
essary, on the basis of data provided by the Fed-
eral agencies that are responsible for maintain-
ing the data.’’. 
SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS. 
Section 104 of title 23, United States Code, is amended 
by striking subsection (k) and inserting the following: 
‘‘(k) TRANSFER OF HIGHWAY AND TRANSIT FUNDS.— 
‘‘(1) TRANSFER OF HIGHWAY FUNDS FOR TRAN-
SIT PROJECTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), funds made available for transit 
projects or transportation planning under this 
title may be transferred to and administered by 
the Secretary in accordance with chapter 53 of 
title 49. 
‘‘(B) NON-FEDERAL
SHARE.—The provi-
sions of this title relating to the non-Federal 
share shall apply to the transferred funds.
HR 3550 EAS 
‘‘(2) TRANSFER OF TRANSIT FUNDS FOR HIGH-
WAY PROJECTS.—Funds made available for highway 
projects or transportation planning under chapter 53 
of title 49 may be transferred to and administered by 
the Secretary in accordance with this title. 
‘‘(3) TRANSFER OF HIGHWAY FUNDS TO OTHER 
FEDERAL AGENCIES.— 
‘‘(A) IN GENERAL.—Except as provided in 
clauses (i) and (ii) and subparagraph (B), funds 
made available under this title or any other Act 
that are derived from Highway Trust Fund 
(other than the Mass Transit account) may be 
transferred to another Federal agency if— 
‘‘(i)(I) an expenditure is specifically 
authorized in Federal-aid highway legisla-
tion or as a line item in an appropriation 
act; or 
‘‘(II) a State transportation depart-
ment consents to the transfer of funds; 
‘‘(ii) the Secretary determines, after 
consultation with the State transportation 
department (as appropriate), that the Fed-
eral agency should carry out a project with 
the funds; and
HR 3550 EAS 
‘‘(iii) the other Federal agency agrees 
to accept the transfer of funds and to ad-
minister the project. 
‘‘(B) ADMINISTRATION.— 
‘‘(i) PROCEDURES.—A project carried 
out with funds transferred to a Federal 
agency under subparagraph (A) shall be ad-
ministered by the Federal agency under the 
procedures of the Federal agency. 
‘‘(ii) APPROPRIATIONS.—Funds trans-
ferred to a Federal agency under subpara-
graph (A) shall not be considered an aug-
mentation of the appropriations of the Fed-
eral agency. 
‘‘(iii) NON-FEDERAL SHARE.—The pro-
visions of this title, or an Act described in 
subparagraph (A), relating to the non-Fed-
eral share shall apply to a project carried 
out with the transferred funds, unless the 
Secretary determines that it is in the best 
interest of the United States that the non- 
Federal share be waived. 
‘‘(4) TRANSFER OF FUNDS AMONG STATES OR TO 
FEDERAL HIGHWAY ADMINISTRATION.—
HR 3550 EAS 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) through (D), the Secretary may, at 
the request of a State, transfer funds apportioned 
or allocated to the State to another State, or to 
the Federal Highway Administration, for the 
purpose of funding 1 or more specific projects. 
‘‘(B) 
ADMINISTRATION.—The 
transferred 
funds shall be used for the same purpose and in 
the same manner for which the transferred funds 
were authorized. 
‘‘(C) APPORTIONMENT.—The transfer shall 
have no effect on any apportionment formula 
used to distribute funds to States under this sec-
tion or section 105 or 144. 
‘‘(D) 
SURFACE
TRANSPORTATION
PRO-
GRAM.—Funds that are apportioned or allocated 
to a State under subsection (b)(3) and attributed 
to an urbanized area of a State with a popu-
lation of over 200,000 individuals under section 
133(d)(2) may be transferred under this para-
graph only if the metropolitan planning organi-
zation designated for the area concurs, in writ-
ing, with the transfer request. 
‘‘(5) TRANSFER OF OBLIGATION AUTHORITY.— 
Obligation authority for funds transferred under this
HR 3550 EAS 
subsection shall be transferred in the same manner 
and amount as the funds for the projects are trans-
ferred under this subsection.’’. 
SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE 
AND INNOVATION ACT AMENDMENTS. 
(a) DEFINITIONS.—Section 181 of title 23, United 
States Code, is amended— 
(1) in paragraph (3), by striking ‘‘category’’ and 
‘‘offered into the capital markets’’; 
(2) by striking paragraph (7) and redesignating 
paragraphs (8) through (15) as paragraphs (7) 
through (14) respectively; 
(3) in paragraph (8) (as redesignated by para-
graph (2))— 
(A) in subparagraph (B), by striking the 
period at the end and inserting a semicolon; and 
(B) by striking subparagraph (D) and in-
serting the following: 
‘‘(D) a project that— 
‘‘(i)(I) is a project for— 
‘‘(aa) a public freight rail facility 
or a private facility providing public 
benefit; 
‘‘(bb) an intermodal freight trans-
fer facility;
HR 3550 EAS 
‘‘(cc) a means of access to a facil-
ity described in item (aa) or (bb); 
‘‘(dd) a service improvement for a 
facility described in item (aa) or (bb) 
(including a capital investment for an 
intelligent transportation system); or 
‘‘(II) comprises a series of projects de-
scribed in subclause (I) with the common 
objective of improving the flow of goods; 
‘‘(ii) may involve the combining of pri-
vate and public sector funds, including in-
vestment of public funds in private sector 
facility improvements; and 
‘‘(iii) if located within the boundaries 
of a port terminal, includes only such sur-
face transportation infrastructure modifica-
tions as are necessary to facilitate direct 
intermodal interchange, transfer, and access 
into and out of the port.’’; and 
(4) in paragraph (10) (as redesignated by para-
graph (2)) by striking ‘‘bond’’ and inserting ‘‘credit’’. 
(b) DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION.—Section 182 of title 23, United States Code, 
is amended— 
(1) in subsection (a)—
HR 3550 EAS 
(A) by striking paragraphs (1) and (2) and 
inserting the following: 
‘‘(1) INCLUSION IN TRANSPORTATION PLANS AND 
PROGRAMS.—The project shall satisfy the applicable 
planning and programming requirements of sections 
134 and 135 at such time as an agreement to make 
available a Federal credit instrument is entered into 
under this subchapter. 
‘‘(2) APPLICATION.—A State, local government, 
public authority, public-private partnership, or any 
other legal entity undertaking the project and author-
ized by the Secretary shall submit a project applica-
tion to the Secretary.’’; 
(B) in paragraph (3)(A)— 
(i) 
in 
clause 
(i), 
by 
striking 
‘‘$100,000,000’’ 
and 
inserting 
‘‘$50,000,000’’; and 
(ii) in clause (ii), by striking ‘‘50’’ 
and inserting ‘‘20’’; and 
(C) in paragraph (4)— 
(i) by striking ‘‘Project financing’’ and 
inserting ‘‘The Federal credit instrument’’; 
and
HR 3550 EAS 
(ii) by inserting before the period at 
the end the following: ‘‘that also secure the 
project obligations’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘criteria’’ 
the second place it appears and inserting ‘‘re-
quirements’’; and 
(B) in paragraph (2)(B), by inserting 
‘‘(which may be the Federal credit instrument)’’ 
after ‘‘obligations’’. 
(c) SECURED LOANS.—Section 183 of title 23, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘of any project selected 
under section 182.’’ at the end; 
(ii) in subparagraphs (A) and (B), by 
inserting ‘‘of any project selected under sec-
tion 182’’ after ‘‘costs’’ ; and 
(iii) in subparagraph (B), by striking 
the semicolon at the end and inserting a pe-
riod; and 
(B) in paragraph (4)— 
(i) by striking ‘‘funding’’ and inserting 
‘‘execution’’; and
HR 3550 EAS 
(ii) by striking ‘‘rating,’’ and all that 
follows and inserting a period; 
(2) in subsection (b)— 
(A) by striking paragraph (2) and inserting 
the following: 
‘‘(2) MAXIMUM AMOUNT.—The amount of the se-
cured loan shall not exceed the lesser of— 
‘‘(A) 33 percent of the reasonably antici-
pated eligible project costs; or 
‘‘(B) the amount of the senior project obli-
gations.’’; 
(B) in paragraph (3)(A)(i), by inserting 
‘‘that also secure the senior project obligations’’ 
after ‘‘sources’’; and 
(C) in paragraph (4), by striking ‘‘market-
able’’; and 
(3) in subsection (c)— 
(A) by striking paragraph (3); 
(B) by redesignating paragraphs (4) and 
(5) as paragraphs (3) and (4), respectively; and 
(C) in paragraph (3) (as redesignated by 
subparagraph (B))— 
(i) in subparagraph (A), by striking 
‘‘during the 10 years’’; and
HR 3550 EAS 
(ii) in subparagraph (B)(ii), by strik-
ing ‘‘loan’’ and all that follows and insert-
ing ‘‘loan.’’. 
(d) LINES OF CREDIT.—Section 184 of title 23, United 
States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (3), by striking ‘‘interest, 
any debt service reserve fund, and any other 
available reserve’’ and inserting ‘‘interest (but 
not including reasonably required financing re-
serves)’’; 
(B) in paragraph (4), by striking ‘‘market-
able United States Treasury securities as of the 
date on which the line of credit is obligated’’ and 
inserting ‘‘ United States Treasury securities as 
of the date of execution of the line of credit agree-
ment’’; and 
(C) in paragraph (5)(A)(i), by inserting 
‘‘that also secure the senior project obligations’’ 
after ‘‘sources’’; and 
(2) in subsection (c)— 
(A) in paragraph (2)— 
(i) by striking ‘‘scheduled’’; 
(ii) by inserting ‘‘be scheduled to’’ after 
‘‘shall’’; and
HR 3550 EAS 
(iii) by striking ‘‘be fully repaid, with 
interest,’’ and inserting ‘‘to conclude, with 
full repayment of principal and interest,’’; 
and 
(B) by striking paragraph (3). 
(e) PROGRAM ADMINISTRATION.—Section 185 of title 
23, United States Code, is amended to read as follows: 
‘‘§ 185. Program administration 
‘‘(a) REQUIREMENT.—The Secretary shall establish a 
uniform system to service the Federal credit instruments 
made available under this subchapter. 
‘‘(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 instruments. 
‘‘(c) SERVICER.— 
‘‘(1) IN GENERAL.—The Secretary may appoint 
a financial entity to assist the Secretary in servicing 
the Federal credit instruments. 
‘‘(2) DUTIES.—The servicer shall act as the 
agent for the Secretary. 
‘‘(3) FEE.—The servicer shall receive a servicing 
fee, subject to approval by the Secretary. 
‘‘(d) ASSISTANCE FROM EXPERT FIRMS.—The Sec-
retary may retain the services of expert firms, including 
counsel, in the field of municipal and project finance to
HR 3550 EAS 
assist in the underwriting and servicing of Federal credit 
instruments.’’. 
(f) FUNDING.—Section 188 of title 23, United States 
Code, is amended to read as follows: 
‘‘§ 188. Funding 
‘‘(a) FUNDING.— 
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated from the Highway Trust Fund (other than 
the Mass Transit Account) to carry out this sub-
chapter $130,000,000 for each of fiscal years 2004 
through 2009. 
‘‘(2) ADMINISTRATIVE COSTS.—Of amounts made 
available under paragraph (1), the Secretary may use 
for the administration of this subchapter not more 
than $2,000,000 for each of fiscal years 2004 through 
2009. 
‘‘(3) COLLECTED FEES AND SERVICES.—In addi-
tion to funds provided under paragraph (2)— 
‘‘(A) all fees collected under this subchapter 
shall be made available without further appro-
priation to the Secretary until expended, for use 
in administering this subchapter; and 
‘‘(B) the Secretary may accept and use pay-
ment or services provided by transaction partici-
pants, or third parties that are paid by partici-
HR 3550 EAS 
pants from transaction proceeds, for due dili-
gence, legal, financial, or technical services. 
‘‘(4) AVAILABILITY.—Amounts made available 
under paragraph (1) shall remain available until ex-
pended. 
‘‘(b) CONTRACT AUTHORITY.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, approval by the Secretary of a Fed-
eral credit instrument that uses funds made available 
under this subchapter shall be deemed to be accept-
ance by the United States of a contractual obligation 
to fund the Federal credit investment. 
‘‘(2) AVAILABILITY.—Amounts authorized under 
this section for a fiscal year shall be available for ob-
ligation on October 1 of the fiscal year.’’. 
(g) REPEAL.—Section 189 of title 23, United States 
code, is repealed. 
(h) CONFORMING AMENDMENTS.—The analysis for 
chapter 1 of title 23, United States Code, is amended— 
(1) by striking the item relating to section 185 
and inserting the following: 
‘‘185. Program administration.’’; 
and 
(2) by striking the item relating to section 189.
HR 3550 EAS 
SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRA-
TION PLANS AND INTERNATIONAL FUEL TAX 
AGREEMENTS. 
(a) IN GENERAL.—Chapter 317 of title 49, United 
States Code, is amended by adding at the end the following: 
‘‘§ 31708. Facilitation of international registration 
plans and international fuel tax agree-
ments 
‘‘The Secretary may provide assistance to any State 
that is participating in the International Registration Plan 
and International Fuel Tax Agreement, as provided in sec-
tions 31704 and 31705, respectively, and that serves as a 
base jurisdiction for motor carriers that are domiciled in 
Mexico, to assist the State with administrative costs result-
ing from serving as a base jurisdiction for motor carriers 
from Mexico.’’. 
(b) CONFORMING
AMENDMENT.—The analysis for 
chapter 317 of title 49, United States Code, is amended by 
adding at the end the following: 
‘‘31708. Facilitation of international registration plans and international fuel tax 
agreements.’’.
100 
HR 3550 EAS 
SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE 
SOURCES TO SUPPORT THE HIGHWAY TRUST 
FUND AND FINANCE THE NEEDS OF THE SUR-
FACE TRANSPORTATION SYSTEM. 
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the ‘‘National Commission on Future 
Revenue Sources to Support the Highway Trust Fund and 
Finance the Needs of the Surface Transportation System’’ 
(referred to in this section as the ‘‘Commission’’). 
(b) MEMBERSHIP.— 
(1) COMPOSITION.—The Commission shall be 
composed of 11 members, of whom— 
(A) 3 members shall be appointed by the 
President; 
(B) 2 members shall be appointed by the 
Speaker of the House of Representatives; 
(C) 2 members shall be appointed by the 
minority leader of the House of Representatives; 
(D) 2 members shall be appointed by the 
majority leader of the Senate; and 
(E) 2 members shall be appointed by the 
minority leader of the Senate. 
(2) QUALIFICATIONS.—Members appointed under 
paragraph (1) shall have experience in or represent 
the interests of—
101 
HR 3550 EAS 
(A) public finance, including experience in 
developing State and local revenue resources; 
(B) surface transportation program admin-
istration; 
(C) organizations that use surface transpor-
tation facilities; 
(D) academic research into related issues; or 
(E) other activities that provide unique per-
spectives on current and future requirements for 
revenue sources to support the Highway Trust 
Fund. 
(3) DATE OF APPOINTMENTS.—The appointment 
of a member of the Commission shall be made not 
later than 120 days after the date of establishment of 
the Commission. 
(4) TERMS.—A member shall be appointed for 
the life of the Commission. 
(5) VACANCIES.—A vacancy on the Commis-
sion— 
(A) shall not affect the powers of the Com-
mission; and 
(B) shall be filled in the same manner as 
the original appointment was made. 
(6) INITIAL MEETING.—Not later than 30 days 
after the date on which all members of the Commis-
102 
HR 3550 EAS 
sion have been appointed, the Commission shall hold 
the initial meeting of the Commission. 
(7) MEETINGS.—The Commission shall meet at 
the call of the Chairperson. 
(8) QUORUM.—A majority of the members of the 
Commission shall constitute a quorum, but a lesser 
number of members may hold hearings. 
(9) CHAIRPERSON AND VICE CHAIRPERSON.—The 
Commission shall select a Chairperson and Vice 
Chairperson from among the members of the Commis-
sion. 
(c) DUTIES.— 
(1) IN GENERAL.—The Commission shall— 
(A) conduct a comprehensive study of alter-
natives to replace or to supplement the fuel tax 
as the principal revenue source to support the 
Highway Trust Fund and suggest new or alter-
native sources of revenue to fund the needs of the 
surface transportation system over at least the 
next 30 years; 
(B) conduct the study in a manner that 
builds on— 
(i) findings, conclusions, and rec-
ommendations of the recent study conducted 
by the Transportation Research Board on
103 
HR 3550 EAS 
alternatives to the fuel tax to support high-
way program financing; and 
(ii) other relevant prior research; 
(C) consult with the Secretary and the Sec-
retary of the Treasury in conducting the study 
to ensure that the views of the Secretaries con-
cerning essential attributes of Highway Trust 
Fund revenue alternatives are considered; 
(D) consult with representatives of State 
Departments of Transportation and metropoli-
tan planning organizations and other key inter-
ested stakeholders in conducting the study to en-
sure that— 
(i) the views of the stakeholders on al-
ternative revenue sources to support State 
transportation improvement programs are 
considered; and 
(ii) any recommended Federal financ-
ing strategy takes into account State finan-
cial requirements; and 
(E) based on the study, make specific rec-
ommendations regarding— 
(i) actions that should be taken to de-
velop alternative revenue sources to support 
the Highway Trust Fund; and
104 
HR 3550 EAS 
(ii) the time frame for taking those ac-
tions. 
(2) SPECIFIC MATTERS.—The study shall address 
specifically— 
(A) the advantages and disadvantages of al-
ternative revenue sources to meet anticipated 
Federal surface transportation financial require-
ments; 
(B) recommendations concerning the most 
promising revenue sources to support long-term 
Federal surface transportation financing require-
ments; 
(C) development of a broad transition strat-
egy to move from the current tax base to new 
funding mechanisms, including the time frame 
for various components of the transition strategy; 
(D) recommendations for additional re-
search that may be needed to implement rec-
ommended alternatives; and 
(E) the extent to which revenues should re-
flect the relative use of the highway system. 
(3) RELATED WORK.—To the maximum extent 
practicable, the study shall build on related work that 
has been done by— 
(A) the Secretary of Transportation;
105 
HR 3550 EAS 
(B) the Secretary of Energy; 
(C) the Transportation Research Board; 
and 
(D) other entities and persons. 
(4) FACTORS.—In developing recommendations 
under this subsection, the Commission shall con-
sider— 
(A) the ability to generate sufficient reve-
nues from all modes to meet anticipated long- 
term surface transportation financing needs; 
(B) the roles of the various levels of govern-
ment and the private sector in meeting future 
surface transportation financing needs; 
(C) administrative costs (including enforce-
ment costs) to implement each option; 
(D) the expected increase in non-taxed fuels 
and the impact of taxing those fuels; 
(E) the likely technological advances that 
could ease implementation of each option; 
(F) the equity and economic efficiency of 
each option; 
(G) the flexibility of different options to 
allow various pricing alternatives to be imple-
mented; and
106 
HR 3550 EAS 
(H) potential compatibility issues with 
State and local tax mechanisms under each al-
ternative. 
(5) REPORT AND RECOMMENDATIONS.—Not later 
than September 30, 2007, the Commission shall sub-
mit to Congress a final report that contains— 
(A) a detailed statement of the findings and 
conclusions of the Commission; and 
(B) the recommendations of the Commission 
for such legislation and administrative actions 
as the Commission considers appropriate. 
(d) POWERS.— 
(1) HEARINGS.—The Commission may hold such 
hearings, meet and act at such times and places, take 
such testimony, and receive such evidence as the Com-
mission considers advisable to carry out this section. 
(2) INFORMATION FROM FEDERAL AGENCIES.— 
(A) IN GENERAL.—The Commission may se-
cure directly from a Federal agency such infor-
mation as the Commission considers necessary to 
carry out this section. 
(B) PROVISION OF INFORMATION.—On re-
quest of the Chairperson of the Commission, the 
head of the agency shall provide the information 
to the Commission.
107 
HR 3550 EAS 
(3) POSTAL SERVICES.—The Commission may 
use the United States mails in the same manner and 
under the same conditions as other agencies of the 
Federal Government. 
(4) DONATIONS.—The Commission may accept, 
use, and dispose of donations of services or property. 
(e) COMMISSION PERSONNEL MATTERS.— 
(1) MEMBERS.—A member of the Commission 
shall serve without pay but shall be allowed travel ex-
penses, including per diem in lieu of subsistence, at 
rates authorized for an employee of an agency under 
subchapter I of chapter 57 of title 5, United States 
Code, while away from the home or regular place of 
business of the member in the performance of the du-
ties of the Commission. 
(2) CONTRACTOR.—The Commission may con-
tract with an appropriate organization, agency, or 
entity to conduct the study required under this sec-
tion, under the strategic guidance of the Commission. 
(3) ADMINISTRATIVE SUPPORT.—On the request 
of the Commission, the Administrator of the Federal 
Highway Administration shall provide to the Com-
mission, on a reimbursable basis, the administrative 
support and services necessary for the Commission to
108 
HR 3550 EAS 
carry out the duties of the Commission under this sec-
tion. 
(4) DETAIL OF DEPARTMENT PERSONNEL.— 
(A) IN
GENERAL.—On the request of the 
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the De-
partment to the Commission to assist the Com-
mission in carrying out the duties of the Com-
mission under this section. 
(B) CIVIL SERVICE STATUS.—The detail of 
the employee shall be without interruption or 
loss of civil service status or privilege. 
(5) COOPERATION.—The staff of the Secretary 
shall cooperate with the Commission in the study re-
quired under this section, including providing such 
nonconfidential data and information as are nec-
essary to conduct the study. 
(f) RELATIONSHIP TO OTHER LAWS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), funds made available 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.
109 
HR 3550 EAS 
(2) FEDERAL SHARE.—The Federal share of the 
cost of the study and the Commission under this sec-
tion shall be 100 percent. 
(3) AVAILABILITY.—Funds made available to 
carry out this section shall remain available until ex-
pended. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
this section $3,000,000 for fiscal year 2004. 
(h) TERMINATION.— 
(1) IN GENERAL.—The Commission shall termi-
nate on the date that is 180 days after the date on 
which the Commission submits the report of the Com-
mission under subsection (c)(5). 
(2) RECORDS.—Not later than the termination 
date for the Commission, all records and papers of the 
Commission shall be delivered to the Archivist of the 
United States for deposit in the National Archives. 
SEC. 1306. STATE INFRASTRUCTURE BANKS. 
Section 1511(b)(1)(A) of the Transportation Equity 
Act for the 21st Century (23 U.S.C. 181 note; 112 Stat. 
251) is amended by striking ‘‘Missouri,’’ and all that fol-
lows through ‘‘for the establishment’’ and inserting ‘‘Mis-
110 
HR 3550 EAS 
souri, Rhode Island, Texas, and any other State that seeks 
such an agreement for the establishment’’. 
SEC. 1307. PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO-
GRAM. 
Section 109(c) of title 23, United States Code, is 
amended by adding at the end the following: 
‘‘(3) PUBLIC-PRIVATE PARTNERSHIPS PILOT PRO-
GRAM.— 
‘‘(A) IN GENERAL.—The Secretary may un-
dertake a pilot program to demonstrate the ad-
vantages of public-private partnerships for crit-
ical capital development projects, including high-
way, bridge, and freight intermodal connector 
projects authorized under this title. 
‘‘(B) PROJECTS.—In carrying out the pro-
gram, the Secretary shall— 
‘‘(i) select not less than 10 qualified 
public-private partnership projects that are 
authorized under applicable State and local 
laws; and 
‘‘(ii) use funds made available to carry 
out the program to provide to sponsors of 
the projects assistance for development 
phase 
activities 
described 
in 
section
111 
HR 3550 EAS 
181(1)(A), to enhance project delivery and 
reduce overall costs.’’. 
SEC. 1308. WAGERING. 
(a) IN GENERAL.—Chapter 35 of the Internal Revenue 
Code of 1986 is repealed. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 4901 of the Internal Revenue Code is 
amended to read as follows: 
‘‘SEC. 4901. PAYMENT OF TAX. 
‘‘All special taxes shall be imposed as of on the first 
day of July in each year, or on commencing any trade or 
business on which such tax is imposed. In the former case 
the tax shall be reckoned for 1 year, and in the latter case 
it shall be reckoned proportionately, from the first day of 
the month in which the liability to a special tax com-
menced, to and including the 30th day of June following.’’. 
(2) Section 4903 of such Code is amended by 
striking ‘‘, other than the tax imposed by section 
4411,’’. 
(3) Section 4905 of such Code is amended to 
read as follows: 
‘‘SEC. 4905. LIABILITY IN CASE OF DEATH OR CHANGE OF 
LOCATION. 
‘‘When any person who has paid the special tax for 
any trade or business dies, his spouse or child, or executors
112 
HR 3550 EAS 
or administrators or other legal representatives, may oc-
cupy the house or premises, and in like manner carry on, 
for the residue of the term for which the tax is paid, the 
same trade or business as the deceased before carried on, 
in the same house and upon the same premises, without 
the payment of any additional tax. When any person re-
moves from the house or premises for which any trade or 
business was taxed to any other place, he may carry on 
the trade or business specified in the register kept in the 
office of the official in charge of the internal revenue district 
at the place to which he removes, without the payment of 
any additional tax: Provided, That all cases of death, 
change, or removal, as aforesaid, with the name of the suc-
cessor to any person deceased, or of the person making such 
change or removal, shall be registered with the Secretary, 
under regulations to be prescribed by the Secretary.’’. 
(4) Section 4907 of such Code is amended by 
striking ‘‘, except the tax imposed by section 4411,’’. 
(5) Section 6103(i)(8)(A) of such Code is amend-
ed— 
(A) by striking ‘‘, except to the extent au-
thorized by subsection (f) or (p)(6), disclose to 
any person, other than another officer or em-
ployee of such office whose official duties require 
such disclosure, any return or return informa-
113 
HR 3550 EAS 
tion described in section 4424(a) in a form 
which can be associated with, or otherwise iden-
tify, directly or indirectly, a particular tax-
payer, nor shall such officer or employee disclose 
any other’’ and inserting ‘‘disclose any’’, and 
(B) by striking ‘‘such other officer’’ and in-
serting ‘‘such officer’’. 
(6) Section 6103(o) of such Code is amended to 
read as follows: 
‘‘(o) DISCLOSURE OF RETURNS AND RETURN INFOR-
MATION WITH RESPECT TO TAXES IMPOSED BY SUBTITLE 
E.—Returns and return information with respect to taxes 
imposed by subtitle E (relating to taxes on alcohol, tobacco, 
and firearms) shall be open to inspection by or disclosure 
to officers and employees of a Federal agency whose official 
duties require such inspection or disclosure.’’. 
(7)(A) Subchapter B of chapter 65 of such Code 
is amended by striking section 6419 (relating to ex-
cise tax on wagering). 
(B) The table of section of subchapter B of chap-
ter 65 of such Code is amended by striking the item 
relating to section 6419. 
(8) Section 6806 of such Code is amended by 
striking ‘‘under subchapter B of chapter 35, under
114 
HR 3550 EAS 
subchapter B of chapter 36,’’ and inserting ‘‘under 
subchapter B of chapter 36’’. 
(9) Section 7012 of such Code is amended by 
striking paragraph (2) and by redesignating para-
graphs (3), (4), and (5) as paragraphs (2), (3), and 
(4), respectively. 
(10)(A) Subchapter B of chapter 75 of such Code 
is amended by striking section 7262 (relating to vio-
lation of occupational tax laws relating to wagering- 
failure to pay special tax). 
(B) The table of sections of subchapter B of chap-
ter 75 of such Code is amended by striking the item 
relating to section 7262. 
(11) Section 7272 of such Code, as amended by 
section 5244 of this Act, is amended to read as fol-
lows: 
‘‘SEC. 7272. PENALTY FOR FAILURE TO REGISTER. 
‘‘Any person (other than persons required to register 
under subtitle E, or persons engaging in a trade or business 
on which a special tax is imposed by such subtitle) who 
fails to register with the Secretary as required by this title 
or by regulations issued thereunder shall be liable to a pen-
alty of $50 ($10,000 in the case of a failure to register under 
section 4101).’’.
115 
HR 3550 EAS 
(12) Section 7613(a) is amended by striking ‘‘or 
other data in the case of’’ and all that follows and in-
serting ‘‘or other data in the case of alcohol, tobacco, 
and firearms taxes, see subtitle E.’’. 
(13) The table of chapters of subtitle D of such 
Code is amended by striking the item relating to 
chapter 35. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to wagers placed after the date of the enactment 
of this Act. 
(2) SPECIAL TAXES.—In the case of amendments 
made by this section relating to special taxes imposed 
by subchapter B of chapter 35, the amendments made 
by this section shall take effect on July 1, 2004. 
Subtitle D—Safety 
SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 
(a) SAFETY IMPROVEMENT.— 
(1) IN
GENERAL.—Section 148 of title 23, 
United States Code, is amended to read as follows: 
‘‘§ 148. Highway safety improvement program 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) HIGHWAY
SAFETY
IMPROVEMENT
PRO-
GRAM.—The term ‘highway safety improvement pro-
116 
HR 3550 EAS 
gram’ means the program carried out under this sec-
tion. 
‘‘(2) 
HIGHWAY
SAFETY
IMPROVEMENT 
PROJECT.— 
‘‘(A) IN
GENERAL.—The term ‘highway 
safety improvement project’ means a project de-
scribed in the State strategic highway safety 
plan that— 
‘‘(i) corrects or improves a hazardous 
road location or feature; or 
‘‘(ii) addresses a highway safety prob-
lem. 
‘‘(B) INCLUSIONS.—The term ‘highway safe-
ty improvement project’ includes a project for— 
‘‘(i) an intersection safety improve-
ment; 
‘‘(ii) pavement and shoulder widening 
(including addition of a passing lane to 
remedy an unsafe condition); 
‘‘(iii) installation of rumble strips or 
another warning device, if the rumble strips 
or other warning devices do not adversely 
affect the safety or mobility of bicyclists and 
pedestrians;
117 
HR 3550 EAS 
‘‘(iv) installation of a skid-resistant 
surface at an intersection or other location 
with a high frequency of accidents; 
‘‘(v) an improvement for pedestrian or 
bicyclist safety; 
‘‘(vi)(I) construction of any project for 
the elimination of hazards at a railway- 
highway crossing that is eligible for funding 
under section 130, including the separation 
or protection of grades at railway-highway 
crossings; 
‘‘(II) construction of a railway-high-
way crossing safety feature; or 
‘‘(III) the conduct of a model traffic 
enforcement activity at a railway-highway 
crossing; 
‘‘(vii) construction of a traffic calming 
feature; 
‘‘(viii) elimination of a roadside obsta-
cle; 
‘‘(ix) improvement of highway signage 
and pavement markings; 
‘‘(x) installation of a priority control 
system for emergency vehicles at signalized 
intersections;
118 
HR 3550 EAS 
‘‘(xi) installation of a traffic control or 
other warning device at a location with 
high accident potential; 
‘‘(xii) safety-conscious planning; 
‘‘(xiii) improvement in the collection 
and analysis of crash data; 
‘‘(xiv) planning, integrated, interoper-
able emergency communications, equipment, 
operational activities, or traffic enforcement 
activities (including police assistance) relat-
ing to workzone safety; 
‘‘(xv) installation of guardrails, bar-
riers (including barriers between construc-
tion work zones and traffic lanes for the 
safety of motorists and workers), and crash 
attenuators; 
‘‘(xvi) the addition or retrofitting of 
structures or other measures to eliminate or 
reduce accidents involving vehicles and 
wildlife; or 
‘‘(xvii) installation and maintenance 
of signs (including fluorescent, yellow-green 
signs) at pedestrian-bicycle crossings and in 
school zones.
119 
HR 3550 EAS 
‘‘(3) SAFETY PROJECT UNDER ANY OTHER SEC-
TION.— 
‘‘(A) IN GENERAL.—The term ‘safety project 
under any other section’ means a project carried 
out for the purpose of safety under any other sec-
tion of this title. 
‘‘(B) INCLUSION.—The term ‘safety project 
under any other section’ includes a project to— 
‘‘(i) promote the awareness of the pub-
lic and educate the public concerning high-
way safety matters; or 
‘‘(ii) enforce highway safety laws. 
‘‘(4) STATE
HIGHWAY
SAFETY
IMPROVEMENT 
PROGRAM.—The term ‘State highway safety improve-
ment program’ means projects or strategies included 
in the State strategic highway safety plan carried out 
as part of the State transportation improvement pro-
gram under section 135(f). 
‘‘(5) 
STATE
STRATEGIC
HIGHWAY
SAFETY 
PLAN.—The term ‘State strategic highway safety 
plan’ means a plan developed by the State transpor-
tation department that— 
‘‘(A) is developed after consultation with— 
‘‘(i) a highway safety representative of 
the Governor of the State;
120 
HR 3550 EAS 
‘‘(ii) regional transportation planning 
organizations and metropolitan planning 
organizations, if any; 
‘‘(iii) representatives of major modes of 
transportation; 
‘‘(iv) State and local traffic enforce-
ment officials; 
‘‘(v) persons responsible for admin-
istering section 130 at the State level; 
‘‘(vi) representatives conducting Oper-
ation Lifesaver; 
‘‘(vii) representatives conducting a 
motor carrier safety program under section 
31104 or 31107 of title 49; 
‘‘(viii) motor vehicle administration 
agencies; and 
‘‘(ix) other major State and local safe-
ty stakeholders; 
‘‘(B) analyzes and makes effective use of 
State, regional, or local crash data; 
‘‘(C) addresses engineering, management, 
operation, education, enforcement, and emer-
gency services elements (including integrated, 
interoperable emergency communications) of
121 
HR 3550 EAS 
highway safety as key factors in evaluating high-
way projects; 
‘‘(D) considers safety needs of, and high-fa-
tality segments of, public roads; 
‘‘(E) considers the results of State, regional, 
or local transportation and highway safety plan-
ning processes; 
‘‘(F) describes a program of projects or 
strategies to reduce or eliminate safety hazards; 
‘‘(G) is approved by the Governor of the 
State or a responsible State agency; and 
‘‘(H) is consistent with the requirements of 
section 135(f). 
‘‘(b) PROGRAM.— 
‘‘(1) IN
GENERAL.—The Secretary shall carry 
out a highway safety improvement program. 
‘‘(2) PURPOSE.—The purpose of the highway 
safety improvement program shall be to achieve a sig-
nificant reduction in traffic fatalities and serious in-
juries on public roads. 
‘‘(c) ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—To obligate funds appor-
tioned under section 104(b)(5) to carry out this sec-
tion, a State shall have in effect a State highway safe-
ty improvement program under which the State—
122 
HR 3550 EAS 
‘‘(A) develops and implements a State stra-
tegic highway safety plan that identifies and 
analyzes highway safety problems and opportu-
nities as provided in paragraph (2); 
‘‘(B) produces a program of projects or 
strategies to reduce identified safety problems; 
‘‘(C) evaluates the plan on a regular basis 
to ensure the accuracy of the data and priority 
of proposed improvements; and 
‘‘(D) submits to the Secretary an annual re-
port that— 
‘‘(i) describes, in a clearly understand-
able fashion, not less than 5 percent of loca-
tions determined by the State, using criteria 
established in accordance with paragraph 
(2)(B)(ii), as exhibiting the most severe 
safety needs; and 
‘‘(ii) contains an assessment of— 
‘‘(I) potential remedies to haz-
ardous locations identified; 
‘‘(II) estimated costs associated 
with those remedies; and 
‘‘(III) impediments to implemen-
tation other than cost associated with 
those remedies.
123 
HR 3550 EAS 
‘‘(2) IDENTIFICATION AND ANALYSIS OF HIGH-
WAY
SAFETY
PROBLEMS
AND
OPPORTUNITIES.—As 
part of the State strategic highway safety plan, a 
State shall— 
‘‘(A) have in place a crash data system with 
the ability to perform safety problem identifica-
tion and countermeasure analysis; 
‘‘(B) based on the analysis required by sub-
paragraph (A)— 
‘‘(i) identify hazardous locations, sec-
tions, and elements (including roadside ob-
stacles, railway-highway crossing needs, 
and unmarked or poorly marked roads) that 
constitute a danger to motorists, bicyclists, 
pedestrians, and other highway users; and 
‘‘(ii) using such criteria as the State 
determines to be appropriate, establish the 
relative severity of those locations, in terms 
of accidents, injuries, deaths, traffic volume 
levels, and other relevant data; 
‘‘(C) adopt strategic and performance-based 
goals that— 
‘‘(i) address traffic safety, including 
behavioral and infrastructure problems and 
opportunities on all public roads;
124 
HR 3550 EAS 
‘‘(ii) focus resources on areas of great-
est need; and 
‘‘(iii) are coordinated with other State 
highway safety programs; 
‘‘(D) advance the capabilities of the State 
for traffic records data collection, analysis, and 
integration with other sources of safety data 
(such as road inventories) in a manner that— 
‘‘(i) complements the State highway 
safety program under chapter 4 and the 
commercial vehicle safety plan under sec-
tion 31102 of title 49; 
‘‘(ii) includes all public roads; 
‘‘(iii) identifies hazardous locations, 
sections, and elements on public roads that 
constitute a danger to motorists, bicyclists, 
pedestrians, and other highway users; and 
‘‘(iv) includes a means of identifying 
the relative severity of hazardous locations 
described in clause (iii) in terms of acci-
dents, injuries, deaths, and traffic volume 
levels; 
‘‘(E)(i) determine priorities for the correc-
tion of hazardous road locations, sections, and 
elements (including railway-highway crossing
125 
HR 3550 EAS 
improvements), as identified through crash data 
analysis; 
‘‘(ii) identify opportunities for preventing 
the development of such hazardous conditions; 
and 
‘‘(iii) establish and implement a schedule of 
highway safety improvement projects for hazard 
correction and hazard prevention; and 
‘‘(F)(i) establish an evaluation process to 
analyze and assess results achieved by highway 
safety improvement projects carried out in ac-
cordance with procedures and criteria established 
by this section; and 
‘‘(ii) use the information obtained under 
clause (i) in setting priorities for highway safety 
improvement projects. 
‘‘(d) ELIGIBLE PROJECTS.— 
‘‘(1) IN GENERAL.—A State may obligate funds 
apportioned to the State under section 104(b)(5) to 
carry out— 
‘‘(A) any highway safety improvement 
project on any public road or publicly owned bi-
cycle or pedestrian pathway or trail; or 
‘‘(B) as provided in subsection (e), for other 
safety projects.
126 
HR 3550 EAS 
‘‘(2) USE OF OTHER FUNDING FOR SAFETY.— 
‘‘(A) EFFECT OF SECTION.—Nothing in this 
section prohibits the use of funds made available 
under other provisions of this title for highway 
safety improvement projects. 
‘‘(B) USE OF OTHER FUNDS.—States are 
encouraged to address the full scope of their safe-
ty needs and opportunities by using funds made 
available under other provisions of this title (ex-
cept a provision that specifically prohibits that 
use). 
‘‘(e) FLEXIBLE FUNDING FOR STATES WITH A STRA-
TEGIC HIGHWAY SAFETY PLAN.— 
‘‘(1) IN GENERAL.—To further the implementa-
tion of a State strategic highway safety plan, a State 
may use up to 25 percent of the amount of funds 
made available under this section for a fiscal year to 
carry out safety projects under any other section as 
provided in the State strategic highway safety plan. 
‘‘(2) OTHER
TRANSPORTATION
AND
HIGHWAY 
SAFETY PLANS.—Nothing in this subsection requires a 
State to revise any State process, plan, or program 
in effect on the date of enactment of this section. 
‘‘(f) REPORTS.—
127 
HR 3550 EAS 
‘‘(1) IN GENERAL.—A State shall submit to the 
Secretary a report that— 
‘‘(A) describes progress being made to im-
plement highway safety improvement projects 
under this section; 
‘‘(B) assesses the effectiveness of those im-
provements; and 
‘‘(C) describes the extent to which the im-
provements funded under this section contribute 
to the goals of— 
‘‘(i) reducing the number of fatalities 
on roadways; 
‘‘(ii) reducing the number of roadway- 
related injuries; 
‘‘(iii) reducing the occurrences of road-
way-related crashes; 
‘‘(iv) mitigating the consequences of 
roadway-related crashes; and 
‘‘(v) reducing the occurrences of road-
way-railroad grade crossing crashes. 
‘‘(2) CONTENTS; 
SCHEDULE.—The Secretary 
shall establish the content and schedule for a report 
under paragraph (1).
128 
HR 3550 EAS 
‘‘(3) TRANSPARENCY.—The Secretary shall make 
reports under subsection (c)(1)(D) available to the 
public through— 
‘‘(A) the Internet site of the Department; 
and 
‘‘(B) such other means as the Secretary de-
termines to be appropriate. 
‘‘(4) DISCOVERY AND ADMISSION INTO EVIDENCE 
OF
CERTAIN
REPORTS, 
SURVEYS, 
AND
INFORMA-
TION.—Notwithstanding any other provision of law, 
reports, surveys, schedules, lists, or data compiled or 
collected for any purpose directly relating to para-
graph (1) or subsection (c)(1)(D), or published by the 
Secretary in accordance with paragraph (3), shall not 
be subject to discovery or admitted into evidence in a 
Federal or State court proceeding or considered for 
other purposes in any action for damages arising 
from any occurrence at a location identified or ad-
dressed in such reports, surveys, schedules, lists, or 
other data. 
‘‘(g) FEDERAL SHARE OF HIGHWAY SAFETY IMPROVE-
MENT PROJECTS.—Except as provided in sections 120 and 
130, the Federal share of the cost of a highway safety im-
provement project carried out with funds made available 
under this section shall be 90 percent.
129 
HR 3550 EAS 
‘‘(h) FUNDS FOR BICYCLE AND PEDESTRIAN SAFE-
TY.—A State shall allocate for bicycle and pedestrian im-
provements in the State a percentage of the funds remain-
ing after implementation of sections 130(e) and 150, in an 
amount that is equal to or greater than the percentage of 
all fatal crashes in the States involving bicyclists and pedes-
trians. 
‘‘(i) ROADWAY SAFETY IMPROVEMENTS FOR OLDER 
DRIVERS AND PEDESTRIANS.—For each of fiscal years 2004 
through 2009, $25,000,000 is authorized to be appropriated 
out of the Highway Trust Fund (other than the Mass Tran-
sit Account) for projects in all States to improve traffic 
signs and pavement markings in a manner consistent with 
the recommendations included in the publication of the Fed-
eral Highway Administration entitled ‘Guidelines and Rec-
ommendations to Accommodate Older Drivers and Pedes-
trians (FHWA-RD-01-103)’ and dated October 2001.’’. 
(2) ALLOCATIONS
OF
APPORTIONED
FUNDS.— 
Section 133(d) of title 23, United States Code, is 
amended— 
(A) by striking paragraph (1); 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (5) as paragraphs (1) through (4), re-
spectively;
130 
HR 3550 EAS 
(C) in paragraph (2) (as redesignated by 
subparagraph (B))— 
(i) in the first sentence of subpara-
graph (A)— 
(I) by striking ‘‘subparagraphs 
(C) and (D)’’ and inserting ‘‘subpara-
graph (C)’’; and 
(II) by striking ‘‘80 percent’’ and 
inserting ‘‘90 percent’’; 
(ii) in subparagraph (B), by striking 
‘‘tobe’’ and inserting ‘‘to be’’; 
(iii) by striking subparagraph (C); 
(iv) by redesignating subparagraphs 
(D) and (E) as subparagraphs (C) and (D), 
respectively; and 
(v) in subparagraph (C) (as redesig-
nated by clause (iv)), by adding a period at 
the end; and 
(D) in paragraph (4)(A) (as redesignated 
by subparagraph (B)), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraph (1)’’. 
(3) ADMINISTRATION.—Section 133(e) of title 23, 
United States Code, is amended in each of para-
graphs (3)(B)(i), (5)(A), and (5)(B) of subsection (e),
131 
HR 3550 EAS 
by striking ‘‘(d)(2)’’ each place it appears and insert-
ing ‘‘(d)(1)’’. 
(4) CONFORMING AMENDMENTS.— 
(A) The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the 
item relating to section 148 and inserting the 
following: 
‘‘148. Highway safety improvement program.’’. 
(B) Section 104(g) of title 23, United States 
Code, is amended in the first sentence by striking 
‘‘sections 130, 144, and 152 of this title’’ and in-
serting ‘‘sections 130 and 144’’. 
(C) Section 126 of title 23, United States 
Code, is amended— 
(i) in subsection (a), by inserting 
‘‘under’’ after ‘‘State’s apportionment’’; and 
(ii) in subsection (b)— 
(I) in the first sentence, by strik-
ing ‘‘the last sentence of section 
133(d)(1) or to section 104(f) or to sec-
tion 133(d)(3)’’ and inserting ‘‘section 
104(f) or 133(d)(2)’’; and 
(II) in the second sentence, by 
striking ‘‘or 133(d)(2)’’. 
(D) Sections 154, 164, and 409 of title 23, 
United States Code, are amended by striking
132 
HR 3550 EAS 
‘‘152’’ each place it appears and inserting 
‘‘148’’. 
(b) APPORTIONMENT OF HIGHWAY SAFETY IMPROVE-
MENT PROGRAM FUNDS.—Section 104(b) of title 23, United 
States Code, is amended— 
(1) in the matter preceding paragraph (1), by 
inserting after ‘‘Improvement program,’’ the fol-
lowing: ‘‘the highway safety improvement program,’’; 
and 
(2) by adding at the end the following: 
‘‘(5) HIGHWAY
SAFETY
IMPROVEMENT
PRO-
GRAM.— 
‘‘(A) IN GENERAL.—For the highway safety 
improvement program, in accordance with the 
following formula: 
‘‘(i) 25 percent of the apportionments 
in the ratio that— 
‘‘(I) the total lane miles of Fed-
eral-aid highways in each State; bears 
to 
‘‘(II) the total lane miles of Fed-
eral-aid highways in all States. 
‘‘(ii) 40 percent of the apportionments 
in the ratio that—
133 
HR 3550 EAS 
‘‘(I) the total vehicle miles trav-
eled on lanes on Federal-aid highways 
in each State; bears to 
‘‘(II) the total vehicle miles trav-
eled on lanes on Federal-aid highways 
in all States. 
‘‘(iii) 35 percent of the apportionments 
in the ratio that— 
‘‘(I) the estimated tax payments 
attributable to highway users in each 
State paid into the Highway Trust 
Fund (other than the Mass Transit Ac-
count) in the latest fiscal year for 
which data are available; bears to 
‘‘(II) the estimated tax payments 
attributable to highway users in all 
States paid into the Highway Trust 
Fund (other than the Mass Transit Ac-
count) in the latest fiscal year for 
which data are available. 
‘‘(B) MINIMUM APPORTIONMENT.—Notwith-
standing subparagraph (A), each State shall re-
ceive a minimum of 1⁄2 of 1 percent of the funds 
apportioned under this paragraph.’’.
134 
HR 3550 EAS 
(c) ELIMINATION OF HAZARDS RELATING TO RAIL-
WAY-HIGHWAY CROSSINGS.— 
(1) FUNDS
FOR
RAILWAY-HIGHWAY
CROSS-
INGS.—Section 130(e) of title 23, United States Code, 
is amended by inserting before ‘‘At least’’ the fol-
lowing: ‘‘For each fiscal year, at least $200,000,000 
of the funds authorized and expended under section 
148 shall be available for the elimination of hazards 
and the installation of protective devices at railway- 
highway crossings.’’. 
(2) BIENNIAL REPORTS TO CONGRESS.—Section 
130(g) of title 23, United States Code, is amended in 
the third sentence— 
(A) by inserting ‘‘and the Committee on 
Commerce, Science, and Transportation,’’ after 
‘‘Public Works’’; and 
(B) by striking ‘‘not later than April 1 of 
each year’’ and inserting ‘‘every other year’’. 
(3) EXPENDITURE OF FUNDS.—Section 130 of 
title 23, United States Code, is amended by adding 
at the end the following: 
‘‘(k) EXPENDITURE OF FUNDS.—Funds made avail-
able to carry out this section shall be—
135 
HR 3550 EAS 
‘‘(1) available for expenditure on compilation 
and analysis of data in support of activities carried 
out under subsection (g); and 
‘‘(2) apportioned in accordance with section 
104(b)(5).’’. 
(d) TRANSITION.— 
(1) IMPLEMENTATION.—Except as provided in 
paragraph (2), the Secretary shall approve obliga-
tions of funds apportioned under section 104(b)(5) of 
title 23, United States Code (as added by subsection 
(b)) to carry out section 148 of that title, only if, not 
later than October 1 of the second fiscal year after the 
date of enactment of this Act, a State has developed 
and implemented a State strategic highway safety 
plan as required under section 148(c) of that title. 
(2) INTERIM PERIOD.— 
(A) IN GENERAL.—Before October 1 of the 
second fiscal year after the date of enactment of 
this Act and until the date on which a State de-
velops and implements a State strategic highway 
safety plan, the Secretary shall apportion funds 
to a State for the highway safety improvement 
program and the State may obligate funds ap-
portioned to the State for the highway safety im-
provement program under section 148 for
136 
HR 3550 EAS 
projects that were eligible for funding under sec-
tions 130 and 152 of that title, as in effect on 
the day before the date of enactment of this Act. 
(B) 
NO
STRATEGIC
HIGHWAY
SAFETY 
PLAN.—If a State has not developed a strategic 
highway safety plan by October 1 of the second 
fiscal year after the date of enactment of this 
Act, but demonstrates to the satisfaction of the 
Secretary that progress is being made toward de-
veloping and implementing such a plan, the Sec-
retary shall continue to apportion funds for 1 
additional fiscal year for the highway safety im-
provement program under section 148 of title 23, 
United States Code, to the State, and the State 
may continue to obligate funds apportioned to 
the State under this section for projects that were 
eligible for funding under sections 130 and 152 
of that title, as in effect on the day before the 
date of enactment of this Act. 
(C) PENALTY.—If a State has not adopted 
a strategic highway safety plan by the date that 
is 2 years after the date of enactment of this Act, 
funds made available to the State under section 
1101(6) shall be redistributed to other States in
137 
HR 3550 EAS 
accordance with section 104(b)(3) of title 23, 
United States Code. 
SEC. 1402. OPERATION LIFESAVER. 
Section 104(d)(1) of title 23, United States Code, is 
amended— 
(1) by striking ‘‘subsection (b)(3)’’ and inserting 
‘‘subsection (b)(5)’’; and 
(2) by striking ‘‘$500,000’’ and inserting 
‘‘$600,000’’. 
SEC. 1403. LICENSE SUSPENSION. 
Section 164(a) of title 23, United States Code, is 
amended by striking paragraph (3) and inserting the fol-
lowing: 
‘‘(3) LICENSE SUSPENSION.—The term ‘license 
suspension’ means— 
‘‘(A) the suspension of all driving privileges 
of an individual for the duration of the suspen-
sion period; or 
‘‘(B) a combination of suspension of all 
driving privileges of an individual for the first 
90 days of the suspension period, followed by re-
instatement of limited driving privileges requir-
ing the individual to operate only motor vehicles 
equipped with an ignition interlock system or
138 
HR 3550 EAS 
other device approved by the Secretary during 
the remainder of the suspension period.’’. 
SEC. 1404. BUS AXLE WEIGHT EXEMPTION. 
Section 1023 of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 127 note; 105 Stat. 
1951) is amended by striking subsection (h) and inserting 
the following: 
‘‘(h) OVER-THE-ROAD BUS AND PUBLIC TRANSIT VE-
HICLE EXEMPTION.— 
‘‘(1) IN GENERAL.—The second sentence of sec-
tion 127 of title 23, United States Code (relating to 
axle weight limitations for vehicles using the Dwight 
D. Eisenhower System of Interstate and Defense 
Highways), shall not apply to— 
‘‘(A) any over-the-road bus (as defined in 
section 301 of the Americans With Disabilities 
Act of 1990 (42 U.S.C. 12181)); or 
‘‘(B) any vehicle that is regularly and ex-
clusively used as an intrastate public agency 
transit passenger bus. 
‘‘(2) STATE ACTION.—No State or political sub-
division of a State, or any political authority of 2 or 
more States, shall impose any axle weight limitation 
on any vehicle described in paragraph (1) in any case
139 
HR 3550 EAS 
in which such a vehicle is using the Dwight D. Eisen-
hower System of Interstate and Defense Highways.’’. 
SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM. 
(a) IN GENERAL.—Subchapter I of chapter I of title 
23, United States Code, is amended by inserting after sec-
tion 149 the following: 
‘‘§ 150. Safe routes to schools program 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) PRIMARY
AND
SECONDARY
SCHOOL.—The 
term ‘primary and secondary school’ means a school 
that provides education to children in any of grades 
kindergarten through 12. 
‘‘(2) PROGRAM.—The term ‘program’ means the 
safe routes to schools program established under sub-
section (b). 
‘‘(3) VICINITY OF A SCHOOL.—The term ‘vicinity 
of a school’ means the area within 2 miles of a pri-
mary or secondary school. 
‘‘(b) ESTABLISHMENT.—The Secretary shall establish 
and carry out a safe routes to school program for the benefit 
of children in primary and secondary schools in accordance 
with this section. 
‘‘(c) PURPOSES.—The purposes of the program shall 
be—
140 
HR 3550 EAS 
‘‘(1) to enable and to encourage children to walk 
and bicycle to school; 
‘‘(2) to encourage a healthy and active lifestyle 
by making walking and bicycling to school safer and 
more appealing transportation alternatives; and 
‘‘(3) to facilitate the planning, development, and 
implementation of projects and activities that will 
improve safety in the vicinity of schools. 
‘‘(d) ELIGIBLE
RECIPIENTS.—A State shall use 
amounts apportioned under this section to provide finan-
cial assistance to State, regional, and local agencies that 
demonstrate an ability to meet the requirements of this sec-
tion. 
‘‘(e) ELIGIBLE PROJECTS AND ACTIVITIES.— 
‘‘(1) INFRASTRUCTURE-RELATED PROJECTS.— 
‘‘(A) IN
GENERAL.—Amounts apportioned 
to a State under this section may be used for the 
planning, design, and construction of infrastruc-
ture-related projects to encourage walking and 
bicycling to school, including— 
‘‘(i) sidewalk improvements; 
‘‘(ii) traffic calming and speed reduc-
tion improvements; 
‘‘(iii) pedestrian and bicycle crossing 
improvements;
141 
HR 3550 EAS 
‘‘(iv) on-street bicycle facilities; 
‘‘(v) off-street bicycle and pedestrian 
facilities; 
‘‘(vi) secure bicycle parking facilities; 
‘‘(vii) traffic signal improvements; and 
‘‘(viii) pedestrian-railroad grade cross-
ing improvements. 
‘‘(B) LOCATION OF PROJECTS.—Infrastruc-
ture-related projects under subparagraph (A) 
may be carried out on— 
‘‘(i) any public road in the vicinity of 
a school; or 
‘‘(ii) any bicycle or pedestrian path-
way or trail in the vicinity of a school. 
‘‘(2) BEHAVIORAL ACTIVITIES.— 
‘‘(A) IN GENERAL.—In addition to projects 
described in paragraph (1), amounts appor-
tioned to a State under this section may be used 
for behavioral activities to encourage walking 
and bicycling to school, including— 
‘‘(i) public awareness campaigns and 
outreach to press and community leaders; 
‘‘(ii) traffic education and enforcement 
in the vicinity of schools; and
142 
HR 3550 EAS 
‘‘(iii) student sessions on bicycle and 
pedestrian safety, health, and environment. 
‘‘(B) ALLOCATION.—Of the amounts appor-
tioned to a State under this section for a fiscal 
year, not less than 10 percent shall be used for 
behavioral activities under this paragraph. 
‘‘(f) FUNDING.— 
‘‘(1) SET ASIDE.—Before apportioning amounts 
to carry out section 148 for a fiscal year, the Sec-
retary shall set aside and use $70,000,000 to carry 
out this section. 
‘‘(2) APPORTIONMENT.—Amounts made available 
to carry out this section shall be apportioned to 
States in accordance with section 104(b)(5). 
‘‘(3) ADMINISTRATION OF AMOUNTS.—Amounts 
apportioned to a State under this section shall be ad-
ministered by the State transportation department. 
‘‘(4) FEDERAL SHARE.—Except as provided in 
sections 120 and 130, the Federal share of the cost of 
a project or activity funded under this section shall 
be 90 percent. 
‘‘(5) 
PERIOD
OF
AVAILABILITY.—Notwith-
standing section 118(b)(2), amounts apportioned 
under this section shall remain available until ex-
pended.’’.
143 
HR 3550 EAS 
(b) CONFORMING AMENDMENTS.—The analysis for 
subchapter I of chapter 1 of title 23, United States Code 
is amended by inserting after the item relating to section 
149 the following: 
‘‘150. Safe routes to school program.’’. 
SEC. 1406. PURCHASES OF EQUIPMENT. 
(a) IN GENERAL.—Section 152 of title 23, United 
States Code is amended to read as follows: 
‘‘§ 152. Purchases of equipment 
‘‘(a) IN GENERAL.—Subject to subsection (b), a State 
carrying out a project under this chapter shall purchase 
device, tool or other equipment needed for the project only 
after completing and providing a written analysis dem-
onstrating the cost savings associated with purchasing the 
equipment compared with renting the equipment from a 
qualified equipment rental provider before the project com-
mences 
‘‘(b) APPLICABILITY.—This section shall apply to— 
‘‘(1) earth moving, road machinery, and mate-
rial handling equipment, or any other item, with a 
purchase price in excess of $75,000; and 
‘‘(2) aerial work platforms with a purchase price 
in excess of $25,000.’’. 
(b) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter 1 of title 23, United States Code, is
144 
HR 3550 EAS 
amended by striking the item relating to section 152 and 
inserting the following: 
‘‘152. Purchases of equipment.’’. 
SEC. 1407. WORKZONE SAFETY. 
Section 358(b) of the National Highway System Des-
ignation Act of 1995 (109 Stat. 625) is amended by adding 
at the end the following: 
‘‘(7) Recommending all federally-assisted projects 
in excess of $15,000,000 to enter into contracts only 
with work zone safety services contractors, traffic con-
trol contractors, and trench safety and shoring con-
tractors that carry general liability insurance in an 
amount not less than $15,000,000. 
‘‘(8) Recommending federally-assisted projects 
the costs of which exceed $15,000,000 to include work 
zone intelligent transportation systems that are— 
‘‘(A) provided by a qualified vendor; and 
‘‘(B) monitored continuously. 
‘‘(9) Recommending federally-assisted projects to 
fully fund not less than 5 percent of project costs for 
work zone safety and temporary traffic control meas-
ures, in addition to the cost of the project, which 
measures shall be provided by a qualified work zone 
safety or traffic control provider. 
‘‘(10) Ensuring that any recommendation made 
under any of paragraphs (7) through (9) provides for
145 
HR 3550 EAS 
an exemption for applicability to a State, with re-
spect to a project or class of projects, to the extent 
that a State notifies the Secretary in writing that 
safety is not expected to be adversely affected by non-
application of the requirement to the project or class 
of projects.’’. 
SEC. 1408. 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 promulgate regulations— 
(1) to decrease the probability of worker injury; 
(2) to maintain the free flow of vehicular traffic 
by requiring workers whose duties place the workers 
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 clothing; and 
(3) to require such other worker-safety measures 
for workers described in paragraph (2) as the Sec-
retary determines appropriate. 
SEC. 1409. IDENTITY AUTHENTICATION STANDARDS. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code (as amended by section 1815(a)), 
is amended by adding at the end the following:
146 
HR 3550 EAS 
‘‘§ 178. Identity authentication standards 
‘‘(a) DEFINITION OF INFORMATION-BASED IDENTITY 
AUTHENTICATION.—In this section, the term ‘information- 
based identity authentication’ means the determination of 
the identity of an individual, through the comparison of 
information provided by a person, with other information 
pertaining to that individual with a system using scoring 
models and algorithms. 
‘‘(b) STANDARDS.—Not later than 180 days after the 
date of enactment of this section, the Secretary, in consulta-
tion with the Secretary of Homeland Security and the Fed-
eral Motor Carrier Safety Administration, shall promulgate 
regulations establishing minimum standards for State de-
partments of motor vehicles regarding the use of informa-
tion-based identity authentication to determine the identity 
of an applicant for a commercial driver’s license, or the 
renewal, transfer or upgrading, of a commercial driver’s li-
cense. 
‘‘(c) MINIMUM STANDARDS.—The regulations shall, at 
a minimum, require State departments of motor vehicles 
to implement, and applicants for commercial driver’s li-
censes, (or the renewal, transfer, or upgrading of commer-
cial driver’s licenses), to comply with, reasonable procedures 
for operating an information-based identity authentication 
program before issuing, renewing, transferring, or upgrad-
ing a commercial driver’s license.
147 
HR 3550 EAS 
‘‘(d) KEY FACTORS.—In promulgating regulations 
under this section, the Secretary shall require that an infor-
mation-based identity authentication program carried out 
under this section establish processes that— 
‘‘(1) use multiple sources of matching informa-
tion; 
‘‘(2) enable the measurement of the accuracy of 
the determination of an applicant’s identity; 
‘‘(3) support continuous auditing of compliance 
with applicable laws, policies, and practices gov-
erning the collection, use, and distribution of infor-
mation in the operation of the program; and 
‘‘(4) incorporate industry best practices to pro-
tect significant privacy interests in the information 
used in the program and the appropriate safe-
guarding of the storage of the information.’’. 
(b) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter I of title 23, United States Code (as 
amended by section 1815(b)), is amended by adding at the 
end the following: 
‘‘178. Identity authentication standards.’’. 
SEC. 1410. OPEN CONTAINER REQUIREMENTS. 
Section 154 of title 23, United States Code, is amended 
by striking subsection (c) and inserting the following: 
‘‘(c) TRANSFER OF FUNDS.—
148 
HR 3550 EAS 
‘‘(1) IN GENERAL.—The Secretary shall withhold 
the applicable percentage for the fiscal year of the 
amount required to be apportioned for Federal-aid 
highways to any State under each of paragraphs (1), 
(3), and (4) of section 104(b), if a State has not en-
acted or is not enforcing a provision described in sub-
section (b), as follows: 
‘‘For: 
The applicable percentage is: 
Fiscal year 2008 ...............................
2 percent. 
Fiscal year 2009 ...............................
2 percent. 
Fiscal year 2010 ...............................
2 percent. 
Fiscal year 2011 and each subse-
quent fiscal year.
2 percent. 
‘‘(2) RESTORATION.—If (during the 4-year pe-
riod beginning on the date the apportionment for any 
State is reduced in accordance with this subsection) 
the Secretary determines that the State has enacted 
and is enforcing a provision described in subsection 
(b), the apportionment of the State shall be increased 
by an amount equal to the amount of the reduction 
made during the 4-year period.’’.
149 
HR 3550 EAS 
Subtitle E—Environmental 
Planning and Review 
CHAPTER 1—TRANSPORTATION 
PLANNING 
SEC. 1501. INTEGRATION OF NATURAL RESOURCE CON-
CERNS INTO STATE AND METROPOLITAN 
TRANSPORTATION PLANNING. 
(a) METROPOLITAN PLANNING.—Section 134(f) of title 
23, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (D)— 
(i) by inserting after ‘‘environment’’ 
the following: ‘‘(including the protection of 
habitat, water quality, and agricultural 
and forest land, while minimizing invasive 
species)’’; and 
(ii) by inserting before the semicolon 
the following: ‘‘(including minimizing ad-
verse health effects from mobile source air 
pollution and promoting the linkage of the 
transportation and development goals of the 
metropolitan area)’’; and 
(B) in subparagraph (G), by inserting ‘‘and 
efficient use’’ after ‘‘preservation’’;
150 
HR 3550 EAS 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) SELECTION OF FACTORS.—After soliciting 
and considering any relevant public comments, the 
metropolitan planning organization shall determine 
which of the factors described in paragraph (1) are 
most appropriate for the metropolitan area to con-
sider.’’. 
(b) STATEWIDE PLANNING.—Section 135(c) of title 23, 
United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (D)— 
(i) by inserting after ‘‘environment’’ 
the following: ‘‘(including the protection of 
habitat, water quality, and agricultural 
and forest land, while minimizing invasive 
species)’’; and 
(ii) by inserting before the semicolon 
the following: ‘‘(including minimizing ad-
verse health effects from mobile source air 
pollution and promoting the linkage of the 
transportation and development goals of the 
State)’’; and
151 
HR 3550 EAS 
(B) in subparagraph (G), by inserting ‘‘and 
efficient use’’ after ‘‘preservation’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) SELECTION
OF
PROJECTS
AND
STRATE-
GIES.—After soliciting and considering any relevant 
public comments, the State shall determine which of 
the projects and strategies described in paragraph (1) 
are most appropriate for the State to consider.’’. 
SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION 
AGENCIES 
AND 
RESOURCE 
AGENCIES 
IN 
TRANSPORTATION PLANNING. 
(a) IN GENERAL.—Section 134(g) of title 23, United 
States Code, is amended— 
(1) in paragraph (2)— 
(A) by redesignating subparagraphs (B) 
through (D) as subparagraphs (C) through (E), 
respectively; and 
(B) by inserting after subparagraph (A) the 
following: 
‘‘(B) MITIGATION ACTIVITIES.—
152 
HR 3550 EAS 
‘‘(i) IN GENERAL.—A long-range trans-
portation plan shall include a discussion 
of— 
‘‘(I) types of potential habitat, 
hydrological, and environmental miti-
gation activities that may assist in 
compensating for loss of habitat, wet-
land, and other environmental func-
tions; and 
‘‘(II) potential areas to carry out 
these activities, including a discussion 
of areas that may have the greatest po-
tential to restore and maintain the 
habitat types and hydrological or envi-
ronmental functions affected by the 
plan. 
‘‘(ii) CONSULTATION.—The discussion 
shall be developed in consultation with Fed-
eral, State, and tribal wildlife, land man-
agement, and regulatory agencies.’’; 
(2) by redesignating paragraphs (4), (5), and (6) 
as paragraphs (5), (6), and (7), respectively; and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) CONSULTATION.—
153 
HR 3550 EAS 
‘‘(A) IN GENERAL.—In each metropolitan 
area, the metropolitan planning organization 
shall consult, as appropriate, with State and 
local agencies responsible for land use manage-
ment, natural resources, environmental protec-
tion, conservation, and historic preservation con-
cerning the development of a long-range trans-
portation plan. 
‘‘(B) ISSUES.—The consultation shall in-
volve— 
‘‘(i) 
comparison 
of 
transportation 
plans with State conservation plans or with 
maps, if available; 
‘‘(ii) comparison of transportation 
plans to inventories of natural or historic 
resources, if available; or 
‘‘(iii) consideration of areas where 
wildlife crossing structures may be needed 
to ensure connectivity between wildlife habi-
tat linkage areas.’’. 
(b) IMPROVED CONSULTATION DURING STATE TRANS-
PORTATION PLANNING.— 
(1) IN GENERAL.—Section 135(e)(2) of title 23, 
United States Code, is amended by adding at the end 
the following:
154 
HR 3550 EAS 
‘‘(D) CONSULTATION, 
COMPARISON, 
AND 
CONSIDERATION.— 
‘‘(i) IN
GENERAL.—The long-range 
transportation plan shall be developed, as 
appropriate, in consultation with State and 
local agencies responsible for— 
‘‘(I) land use management; 
‘‘(II) natural resources; 
‘‘(III) environmental protection; 
‘‘(IV) conservation; and 
‘‘(V) historic preservation. 
‘‘(ii) COMPARISON
AND
CONSIDER-
ATION.—Consultation under clause (i) shall 
involve— 
‘‘(I) comparison of transportation 
plans to State conservation plans or 
maps, if available; 
‘‘(II) comparison of transpor-
tation plans to inventories of natural 
or historic resources, if available; or 
‘‘(III) 
consideration 
of 
areas 
where wildlife crossing structures may 
be needed to ensure connectivity be-
tween wildlife habitat linkage areas.’’.
155 
HR 3550 EAS 
(2) 
ADDITIONAL
REQUIREMENTS.—Section 
135(e) of title 23, United States Code, is amended— 
(A) by redesignating paragraphs (4) and 
(5) as paragraphs (6) and (7), respectively; and 
(B) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—A long-range transpor-
tation plan shall include a discussion of— 
‘‘(i) 
types 
of 
potential 
habitat, 
hydrological, and environmental mitigation 
activities that may assist in compensating 
for loss of habitat, wetlands, and other envi-
ronmental functions; and 
‘‘(ii) potential areas to carry out these 
activities, including a discussion of areas 
that may have the greatest potential to re-
store and maintain the habitat types and 
hydrological or environmental functions af-
fected by the plan. 
‘‘(B) CONSULTATION.—The discussion shall 
be developed in consultation with Federal, State, 
and tribal wildlife, land management, and regu-
latory agencies.
156 
HR 3550 EAS 
‘‘(5) TRANSPORTATION
STRATEGIES.—A long- 
range transportation plan shall identify transpor-
tation strategies necessary to efficiently serve the mo-
bility needs of people.’’. 
SEC. 1503. INTEGRATION OF NATURAL RESOURCE CON-
CERNS 
INTO 
TRANSPORTATION 
PROJECT 
PLANNING. 
Section 109(c)(2) of title 23, United States Code, is 
amended— 
(1) by striking ‘‘consider the results’’ and insert-
ing ‘‘consider— 
‘‘(A) the results’’; 
(2) by striking the period at the end and insert-
ing a semicolon; and 
(3) by adding at the end the following: 
‘‘(B) the publication entitled ‘Flexibility in 
Highway Design’ of the Federal Highway Ad-
ministration; 
‘‘(C) ‘Eight Characteristics of Process to 
Yield Excellence and the Seven Qualities of Ex-
cellence in Transportation Design’ developed by 
the conference held during 1998 entitled ‘Think-
ing Beyond the Pavement National Workshop on 
Integrating Highway Development with Commu-
157 
HR 3550 EAS 
nities and the Environment while Maintaining 
Safety and Performance’; and 
‘‘(D) any other material that the Secretary 
determines to be appropriate.’’. 
SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION 
PLANNING AND PROJECTS. 
(a) METROPOLITAN PLANNING.— 
(1) PARTICIPATION BY INTERESTED PARTIES.— 
Section 134(g)(5) of title 23, United States Code (as 
redesignated by section 1502(a)(1)), is amended— 
(A) by striking ‘‘Before approving’’ and in-
serting the following: 
‘‘(A) IN GENERAL.—Before approving’’; and 
(B) by adding at the end the following: 
‘‘(B) METHODS.—In carrying out subpara-
graph (A), the metropolitan planning organiza-
tion shall, to the maximum extent practicable— 
‘‘(i) hold any public meetings at con-
venient and accessible locations and times; 
‘‘(ii) employ visualization techniques 
to describe plans; and 
‘‘(iii) make public information avail-
able in electronically accessible format and 
means, such as the World Wide Web.’’.
158 
HR 3550 EAS 
(2) PUBLICATION
OF
LONG-RANGE
TRANSPOR-
TATION
PLANS.—Section 134(g)(6)(i) of title 23, 
United States Code (as redesignated by section 
1502(a)(1)), is amended by inserting before the semi-
colon the following: ‘‘, including (to the maximum ex-
tent practicable) in electronically accessible formats 
and means such as the World Wide Web’’. 
(b) STATEWIDE PLANNING.— 
(1) PARTICIPATION BY INTERESTED PARTIES.— 
Section 135(e)(3) of title 23, United States Code, is 
amended by striking subparagraph (B) and inserting 
the following: 
‘‘(B) METHODS.—In carrying out subpara-
graph (A), the State shall, to the maximum ex-
tent practicable— 
‘‘(i) hold any public meetings at con-
venient and accessible locations and times; 
‘‘(ii) employ visualization techniques 
to describe plans; and 
‘‘(iii) make public information avail-
able in electronically accessible format and 
means, such as the World Wide Web.’’. 
(2) PUBLICATION
OF
LONG-RANGE
TRANSPOR-
TATION PLANS.—Section 135(e) of title 23, United
159 
HR 3550 EAS 
States Code (as amended by section 1502(b)(2)), is 
amended by adding at the end the following: 
‘‘(8) PUBLICATION OF LONG-RANGE TRANSPOR-
TATION PLANS.—Each long-range transportation plan 
prepared by a State shall be published or otherwise 
made available, including (to the maximum extent 
practicable) in electronically accessible formats and 
means, such as the World Wide Web.’’. 
SEC. 1505. PROJECT MITIGATION. 
(a) MITIGATION
FOR NATIONAL HIGHWAY SYSTEM 
PROJECTS.—Section 103(b)(6)(M) of title 23, United States 
Code, is amended— 
(1) by inserting ‘‘(i)’’ after ‘‘(M); and 
(2) by adding at the end the following: 
‘‘(ii) State habitat, streams, and wetlands 
mitigation efforts under section 155.’’. 
(b) MITIGATION FOR SURFACE TRANSPORTATION PRO-
GRAM PROJECTS.—Section 133(b)(11) of title 23, United 
States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(11)’’; and 
(2) by adding at the end the following: 
‘‘(B) State habitat, streams, and wetlands miti-
gation efforts under section 155.’’.
160 
HR 3550 EAS 
(c) STATE HABITAT, STREAMS, AND WETLANDS MITI-
GATION FUNDS.—Section 155 of title 23, United States 
Code, is amended to read as follows: 
‘‘§ 155. State habitat, streams, and wetlands mitiga-
tion funds 
‘‘(a) ESTABLISHMENT.—A State should establish a 
habitat, streams, and wetlands mitigation fund (referred to 
in this section as a ‘State fund’). 
‘‘(b) PURPOSE.—The purpose of a State fund is to en-
courage efforts for habitat, streams, and wetlands mitiga-
tion in advance of or in conjunction with highway or tran-
sit projects to— 
‘‘(1) ensure that the best habitat, streams, and 
wetland mitigation sites now available are used; and 
‘‘(2) accelerate transportation project delivery by 
making high-quality habitat, streams, and wetland 
mitigation credits available when needed. 
‘‘(c) FUNDS.—A State may deposit into a State fund 
part of the funds apportioned to the State under— 
‘‘(1) section 104(b)(1) for the National Highway 
System; and 
‘‘(2) section 104(b)(3) for the surface transpor-
tation program. 
‘‘(d) USE.—
161 
HR 3550 EAS 
‘‘(1) IN
GENERAL.—Amounts deposited in a 
State fund shall be used (in a manner consistent with 
this section) for habitat, streams, or wetlands mitiga-
tion related to 1 or more projects funded under this 
title, including a project under the transportation im-
provement program of the State developed under sec-
tion 135(f). 
‘‘(2) ENDANGERED
SPECIES.—In carrying out 
this section, a State and cooperating agency shall give 
consideration to mitigation projects, on-site or off-site, 
that restore and preserve the best available sites to 
conserve biodiversity and habitat for— 
‘‘(A) Federal or State listed threatened or 
endangered species of plants and animals; and 
‘‘(B) plant or animal species warranting 
listing as threatened or endangered, as deter-
mined by the Secretary of the Interior in accord-
ance with section 4(b)(3)(B) of the Endangered 
Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)). 
‘‘(3) MITIGATION IN CLOSED BASINS.— 
‘‘(A) IN
GENERAL.—A State may use 
amounts deposited in the State fund for projects 
to protect existing roadways from anticipated 
flooding of a closed basin lake, including— 
‘‘(i) construction—
162 
HR 3550 EAS 
‘‘(I) necessary for the continu-
ation of roadway services and the im-
poundment of water, as the State de-
termines to be appropriate; or 
‘‘(II) for a grade raise to perma-
nently restore a roadway the use of 
which is lost or reduced, or could be 
lost or reduced, as a result of an actual 
or predicted water level that is within 
3 feet of causing inundation of the 
roadway in a closed lake basin; 
‘‘(ii) monitoring, studies, evaluations, 
design, or preliminary engineering relating 
to construction; and 
‘‘(iii) monitoring and evaluations re-
lating to proposed construction. 
‘‘(B) 
REIMBURSEMENT.—The 
Secretary 
may permit a State that expends funds under 
subparagraph (A) to be reimbursed for the ex-
penditures through the use of amounts made 
available under section 125(c)(1). 
‘‘(e) CONSISTENCY
WITH
APPLICABLE
REQUIRE-
MENTS.—Contributions from the State fund to mitigation 
efforts may occur in advance of project construction only
163 
HR 3550 EAS 
if the efforts are consistent with all applicable requirements 
of Federal law (including regulations).’’. 
(d) CONFORMING AMENDMENT.—The analysis for sub-
chapter I of chapter 1 of title 23, United States Code, is 
amended by striking the item relating to section 155 and 
inserting the following: 
‘‘155. State habitat, streams, and wetlands mitigation funds.’’. 
CHAPTER 2—TRANSPORTATION PROJECT 
DEVELOPMENT PROCESS 
SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT 
PROCESS. 
(a) IN GENERAL.—Chapter 3 of title 23, United States 
Code (as amended by section 1203(a)), is amended by in-
serting after section 325 the following: 
‘‘§ 326. Transportation project development process 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) AGENCY.—The term ‘agency’ means any 
agency, department, or other unit of Federal, State, 
local, or federally recognized tribal government. 
‘‘(2) ENVIRONMENTAL IMPACT STATEMENT.—The 
term ‘environmental impact statement’ means a de-
tailed statement of the environmental impacts of a 
project required to be prepared under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
‘‘(3) ENVIRONMENTAL REVIEW PROCESS.—
164 
HR 3550 EAS 
‘‘(A) IN
GENERAL.—The term ‘environ-
mental review process’ means the process for pre-
paring, for a project— 
‘‘(i) an environmental impact state-
ment; or 
‘‘(ii) any other document or analysis 
required to be prepared under the National 
Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) 
‘‘(B) 
INCLUSIONS.—The 
term 
‘environ-
mental review process’ includes the process for 
and completion of any environmental permit, 
approval, review, or study required for a project 
under any Federal law other than the National 
Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
‘‘(4) PROJECT.—The term ‘project’ means any 
highway or transit project that requires the approval 
of the Secretary. 
‘‘(5) PROJECT
SPONSOR.—The term ‘project 
sponsor’ means an agency or other entity (including 
any private or public-private entity), that seeks ap-
proval of the Secretary for a project. 
‘‘(6) STATE
TRANSPORTATION
DEPARTMENT.— 
The term ‘State transportation department’ means
165 
HR 3550 EAS 
any statewide agency of a State with responsibility 
for transportation. 
‘‘(b) PROCESS.— 
‘‘(1) LEAD AGENCY.— 
‘‘(A) IN
GENERAL.—The Department of 
Transportation shall be the lead Federal agency 
in the environmental review process for a project. 
‘‘(B) JOINT LEAD AGENCIES.—Nothing in 
this section precludes another agency from being 
a joint lead agency in accordance with regula-
tions under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
‘‘(C) CONCURRENCE
OF
PROJECT
SPON-
SOR.—The lead agency may carry out the envi-
ronmental review process in accordance with this 
section only with the concurrence of the project 
sponsor. 
‘‘(2) REQUEST FOR PROCESS.— 
‘‘(A) IN GENERAL.—A project sponsor may 
request that the lead agency carry out the envi-
ronmental review process for a project or group 
of projects in accordance with this section. 
‘‘(B) GRANT
OF
REQUEST; PUBLIC
NO-
TICE.—The lead agency shall—
166 
HR 3550 EAS 
‘‘(i) grant a request under subpara-
graph (A); and 
‘‘(ii) provide public notice of the re-
quest. 
‘‘(3) EFFECTIVE DATE.—The environmental re-
view process described in this section may be applied 
to a project only after the date on which public notice 
is provided under subparagraph (B)(ii). 
‘‘(c) ROLES AND RESPONSIBILITY OF LEAD AGENCY.— 
With respect to the environmental review process for any 
project, the lead agency shall have authority and responsi-
bility to— 
‘‘(A) identify and invite cooperating agen-
cies in accordance with subsection (d); 
‘‘(B) develop an agency coordination plan 
with review, schedule, and timelines in accord-
ance with subsection (e); 
‘‘(C) determine the purpose and need for the 
project in accordance with subsection (f); 
‘‘(D) determine the range of alternatives to 
be considered in accordance with subsection (g); 
‘‘(E) convene dispute-avoidance and deci-
sion resolution meetings and related efforts in 
accordance with subsection (h);
167 
HR 3550 EAS 
‘‘(F) take such other actions as are nec-
essary and proper, within the authority of the 
lead agency, to facilitate the expeditious resolu-
tion of the environmental review process for the 
project; and 
‘‘(G) prepare or ensure that any required 
environmental impact statement or other docu-
ment required to be completed under the Na-
tional Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) is completed in accordance 
with this section and applicable Federal law. 
‘‘(d) ROLES AND RESPONSIBILITIES OF COOPERATING 
AGENCIES.— 
‘‘(1) IN GENERAL.—With respect to a project, 
each Federal agency shall carry out any obligations 
of the Federal agency in the environmental review 
process in accordance with this section and applicable 
Federal law. 
‘‘(2) INVITATION.— 
‘‘(A) 
IN
GENERAL.—The 
lead 
agency 
shall— 
‘‘(i) identify, as early as practicable in 
the environmental review process for a 
project, any other agencies that may have 
an interest in the project, including—
168 
HR 3550 EAS 
‘‘(I) agencies with jurisdiction 
over environmentally-related matters 
that may affect the project or may be 
required by law to conduct an environ-
mental-related independent review or 
analysis of the project or determine 
whether to issue an environmental-re-
lated permit, license, or approval for 
the project; and 
‘‘(II) agencies with special exper-
tise relevant to the project; 
‘‘(ii) invite the agencies identified in 
clause (i) to become participating agencies 
in the environmental review process for that 
project; and 
‘‘(iii) grant requests to become cooper-
ating agencies from agencies not originally 
invited. 
‘‘(B) RESPONSES.—The deadline for receipt 
of a response from an agency that receives an in-
vitation under subparagraph (A)(ii)— 
‘‘(i) shall be 30 days after the date of 
receipt by the agency of the invitation; but 
‘‘(ii) may be extended by the lead agen-
cy for good cause.
169 
HR 3550 EAS 
‘‘(3) DECLINING
OF
INVITATIONS.—A Federal 
agency that is invited by the lead agency to partici-
pate in the environmental review process for a project 
shall be designated as a cooperating agency by the 
lead agency, unless the invited agency informs the 
lead agency in writing, by the deadline specified in 
the invitation, that the invited agency— 
‘‘(A) has no jurisdiction or authority with 
respect to the project; 
‘‘(B) has no expertise or information rel-
evant to the project; and 
‘‘(C) does not intend to submit comments on 
the project. 
‘‘(4) EFFECT OF DESIGNATION.—Designation as 
a cooperating agency under this subsection shall not 
imply that the cooperating agency— 
‘‘(A) supports a proposed project; or 
‘‘(B) has any jurisdiction over, or special 
expertise with respect to evaluation of, the 
project. 
‘‘(5) 
DESIGNATIONS
FOR
CATEGORIES
OF 
PROJECTS.— 
‘‘(A) IN GENERAL.—The Secretary may in-
vite other agencies to become cooperating agen-
cies for a category of projects.
170 
HR 3550 EAS 
‘‘(B) DESIGNATION.—An agency may be 
designated as a cooperating agency for a cat-
egory of projects only with the consent of the 
agency. 
‘‘(6) CONCURRENT
REVIEWS.—Each Federal 
agency shall, to the maximum extent practicable— 
‘‘(A) carry out obligations of the Federal 
agency under other applicable law concurrently, 
and in conjunction, with the review required 
under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), unless doing so 
would impair the ability of the Federal agency 
to carry out those obligations; and 
‘‘(B) formulate and implement administra-
tive, policy, and procedural mechanisms to en-
able the agency to ensure completion of the envi-
ronmental review process in a timely, coordi-
nated, and environmentally responsible manner. 
‘‘(e) DEVELOPMENT
OF
FLEXIBLE
PROCESS
AND 
TIMELINE.— 
‘‘(1) COORDINATION PLAN.— 
‘‘(A) IN GENERAL.—The lead agency shall 
establish a coordination plan, which may be in-
corporated into a memorandum of under-
standing, to coordinate agency and public par-
171 
HR 3550 EAS 
ticipation in and comment on the environmental 
review process for a project or category of 
projects. 
‘‘(B) WORKPLAN.— 
‘‘(i) IN
GENERAL.—The lead agency 
shall develop, as part of the coordination 
plan, a workplan for completing the collec-
tion, analysis, and evaluation of baseline 
data and future impacts modeling necessary 
to complete the environmental review proc-
ess, including any data, analyses, and mod-
eling necessary for related permits, approv-
als, reviews, or studies required for the 
project under other laws. 
‘‘(ii) CONSULTATION.—In developing 
the workplan under clause (i), the lead 
agency shall consult with— 
‘‘(I) each cooperating agency for 
the project; 
‘‘(II) the State in which the 
project is located; and 
‘‘(III) if the State is not the 
project sponsor, the project sponsor. 
‘‘(C) SCHEDULE.—
172 
HR 3550 EAS 
‘‘(i) IN
GENERAL.—The lead agency 
shall establish as part of the coordination 
plan, after consultation with each cooper-
ating agency for the project and with the 
State in which the project is located (and, 
if the State is not the project sponsor, with 
the project sponsor), a schedule for comple-
tion of the environmental review process for 
the project. 
‘‘(ii) FACTORS FOR CONSIDERATION.— 
In establishing the schedule, the lead agency 
shall consider factors such as— 
‘‘(I) the responsibilities of cooper-
ating agencies under applicable laws; 
‘‘(II) resources available to the co-
operating agencies; 
‘‘(III) overall size and complexity 
of a project; 
‘‘(IV) the overall schedule for and 
cost of a project; and 
‘‘(V) the sensitivity of the natural 
and historic resources that could be af-
fected by the project. 
‘‘(D) CONSISTENCY WITH OTHER TIME PE-
RIODS.—A schedule under subparagraph (C)
173 
HR 3550 EAS 
shall be consistent with any other relevant time 
periods established under Federal law. 
‘‘(E) 
MODIFICATION.—The 
lead 
agency 
may— 
‘‘(i) lengthen a schedule established 
under subparagraph (C) for good cause; and 
‘‘(ii) shorten a schedule only with the 
concurrence of the affected cooperating agen-
cies. 
‘‘(F) DISSEMINATION.—A copy of a schedule 
under subparagraph (C), and of any modifica-
tions to the schedule, shall be— 
‘‘(i) provided to all cooperating agen-
cies and to the State transportation depart-
ment of the State in which the project is lo-
cated (and, if the State is not the project 
sponsor, to the project sponsor); and 
‘‘(ii) made available to the public. 
‘‘(2) COMMENTS AND TIMELINES.— 
‘‘(A) IN GENERAL.—A schedule established 
under paragraph (1)(C) shall include— 
‘‘(i) opportunities for comment, dead-
line for receipt of any comments submitted, 
deadline for lead agency response to com-
ments; and
174 
HR 3550 EAS 
‘‘(ii) except as otherwise provided 
under paragraph (1)— 
‘‘(I) an opportunity to comment 
by agencies and the public on a draft 
or final environmental impact state-
ment for a period of not more than 60 
days longer than the minimum period 
required under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 
4321 et seq.); and 
‘‘(II) for all other comment peri-
ods established by the lead agency for 
agency or public comments in the envi-
ronmental review process, a period of 
not more than the longer of— 
‘‘(aa) 30 days after the final 
day of the minimum period re-
quired under Federal law (includ-
ing regulations), if available; or 
‘‘(bb) if a minimum period 
is not required under Federal law 
(including regulations), 30 days. 
‘‘(B) EXTENSION OF COMMENT PERIODS.— 
The lead agency may extend a period of com-
175 
HR 3550 EAS 
ment established under this paragraph for good 
cause. 
‘‘(C) LATE
COMMENTS.—A comment con-
cerning a project submitted under this para-
graph after the date of termination of the appli-
cable comment period or extension of a comment 
period shall not be eligible for consideration by 
the lead agency unless the lead agency or project 
sponsor determines there was good cause for the 
delay or the lead agency is required to consider 
significant new circumstances or information in 
accordance with sections 1501.7 and 1502.9 of 
title 40, Code of Federal Regulations. 
‘‘(D) DEADLINES
FOR
DECISIONS
UNDER 
OTHER LAWS.—In any case in which a decision 
under any Federal law relating to a project (in-
cluding the issuance or denial of a permit or li-
cense) is required to be made by the later of the 
date that is 180 days after the date on which the 
Secretary made all final decisions of the lead 
agency with respect to the project, or 180 days 
after the date on which an application was sub-
mitted for the permit or license, the Secretary 
shall submit to the Committee on Environment 
and Public Works of the Senate and the Com-
176 
HR 3550 EAS 
mittee on Transportation and Infrastructure of 
the House of Representatives— 
‘‘(i) as soon as practicable after the 
180-day period, an initial notice of the fail-
ure of the Federal agency to make the deci-
sion; and 
‘‘(ii) every 60 day thereafter until such 
date as all decisions of the Federal agency 
relating to the project have been made by 
the Federal agency, an additional notice 
that describes the number of decisions of the 
Federal agency that remain outstanding as 
of the date of the additional notice. 
‘‘(3) INVOLVEMENT OF THE PUBLIC.—Nothing in 
this subsection shall reduce any time period provided 
for public comment in the environmental review proc-
ess under existing Federal law (including a regula-
tion). 
‘‘(f) DEVELOPMENT OF PROJECT PURPOSE AND NEED 
STATEMENT.— 
‘‘(1) IN GENERAL.—With respect to the environ-
mental review process for a project, the purpose and 
need for the project shall be defined in accordance 
with this subsection.
177 
HR 3550 EAS 
‘‘(2) AUTHORITY.—The lead agency shall define 
the purpose and need for a project, including the 
transportation objectives and any other objectives in-
tended to be achieved by the project. 
‘‘(3) INVOLVEMENT OF COOPERATING AGENCIES 
AND THE PUBLIC.—Before determining the purpose 
and need for a project, the lead agency shall solicit 
for 30 days, and consider, any relevant comments on 
the draft statement of purpose and need for a pro-
posed project received from the public and cooperating 
agencies. 
‘‘(4) EFFECT ON OTHER REVIEWS.—For the pur-
pose of compliance with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) and any 
other law requiring an agency that is not the lead 
agency to determine or consider a project purpose or 
project need, such an agency acting, permitting, or 
approving under, or otherwise applying, Federal law 
with respect to a project shall adopt the determina-
tion of purpose and need for the project made by the 
lead agency. 
‘‘(5) SAVINGS.—Nothing in this subsection pre-
empts or interferes with any power, jurisdiction, re-
sponsibility, or authority of an agency under applica-
178 
HR 3550 EAS 
ble law (including regulations) with respect to a 
project. 
‘‘(6) CONTENTS.— 
‘‘(A) IN GENERAL.—The statement of pur-
pose and need shall include a clear statement of 
the objectives that the proposed project is in-
tended to achieve. 
‘‘(B) EFFECT ON EXISTING STANDARDS.— 
Nothing in this subsection shall alter existing 
standards for defining the purpose and need of 
a project. 
‘‘(7) FACTORS TO CONSIDER.—The lead agency 
may determine that any of the following factors and 
documents are appropriate for consideration in deter-
mining the purpose of and need for a project: 
‘‘(A) Transportation plans and related 
planning documents developed through the state-
wide and metropolitan transportation planning 
process under sections 134 and 135. 
‘‘(B) Land use plans adopted by units of 
State, local, or tribal government (or, in the case 
of Federal land, by the applicable Federal land 
management agencies). 
‘‘(C) Economic development plans adopted 
by—
179 
HR 3550 EAS 
‘‘(i) units of State, local, or tribal gov-
ernment; or 
‘‘(ii) established economic development 
planning organizations or authorities. 
‘‘(D) Environmental protection plans, in-
cluding plans for the protection or treatment 
of— 
‘‘(i) air quality; 
‘‘(ii) water quality and runoff; 
‘‘(iii) habitat needs of plants and ani-
mals; 
‘‘(iv) threatened and endangered spe-
cies; 
‘‘(v) invasive species; 
‘‘(vi) historic properties; and 
‘‘(vii) other environmental resources. 
‘‘(E) Any publicly available plans or poli-
cies relating to the national defense, national se-
curity, or foreign policy of the United States. 
‘‘(g) DEVELOPMENT OF PROJECT ALTERNATIVES.— 
‘‘(1) IN GENERAL.—With respect to the environ-
mental review process for a project, the alternatives 
shall be determined in accordance with this sub-
section.
180 
HR 3550 EAS 
‘‘(2) AUTHORITY.—The lead agency shall deter-
mine the alternatives to be considered for a project. 
‘‘(3) INVOLVEMENT OF COOPERATING AGENCIES 
AND THE PUBLIC.— 
‘‘(A) IN GENERAL.—Before determining the 
alternatives for a project, the lead agency shall 
solicit for 30 days and consider any relevant 
comments on the proposed alternatives received 
from the public and cooperating agencies. 
‘‘(B) ALTERNATIVES.—The lead agency 
shall consider— 
‘‘(i) alternatives that meet the purpose 
and need of the project; and 
‘‘(ii) the alternative of no action. 
‘‘(C) EFFECT ON EXISTING STANDARDS.— 
Nothing in this subsection shall alter the existing 
standards for determining the range of alter-
natives. 
‘‘(4) EFFECT ON OTHER REVIEWS.—Any other 
agency acting under or applying Federal law with re-
spect to a project shall consider only the alternatives 
determined by the lead agency. 
‘‘(5) SAVINGS.—Nothing in this subsection pre-
empts or interferes with any power, jurisdiction, re-
sponsibility, or authority of an agency under applica-
181 
HR 3550 EAS 
ble law (including regulations) with respect to a 
project. 
‘‘(6) FACTORS TO CONSIDER.—The lead agency 
may determine that any of the following factors and 
documents are appropriate for consideration in deter-
mining the alternatives for a project: 
‘‘(A) The overall size and complexity of the 
proposed action. 
‘‘(B) The sensitivity of the potentially af-
fected resources. 
‘‘(C) The overall schedule and cost of the 
project. 
‘‘(D) Transportation plans and related 
planning documents developed through the state-
wide and metropolitan transportation planning 
process under sections 134 and 135 of title 23 of 
the United States Code. 
‘‘(E) Land use plans adopted by units of 
State, local, or tribal government (or, in the case 
of Federal land, by the applicable Federal land 
management agencies). 
‘‘(F) Economic development plans adopted 
by— 
‘‘(i) units of State, local, or tribal gov-
ernment; or
182 
HR 3550 EAS 
‘‘(ii) established economic development 
planning organizations or authorities. 
‘‘(G) environmental protection plans, in-
cluding plans for the protection or treatment 
of— 
‘‘(i) air quality; 
‘‘(ii) water quality and runoff; 
‘‘(iii) habitat needs of plants and ani-
mals; 
‘‘(iv) threatened and endangered spe-
cies; 
‘‘(v) invasive species; 
‘‘(vi) historic properties; and 
‘‘(vii) other environmental resources. 
‘‘(H) Any publicly available plans or poli-
cies relating to the national defense, national se-
curity, or foreign policy of the United States. 
‘‘(h) PROMPT ISSUE IDENTIFICATION AND RESOLU-
TION PROCESS.— 
‘‘(1) IN GENERAL.—The lead agency, the project 
sponsor, and the cooperating agencies shall work co-
operatively, in accordance with this section, to iden-
tify and resolve issues that could— 
‘‘(A) delay completion of the environmental 
review process; or
183 
HR 3550 EAS 
‘‘(B) result in denial of any approvals re-
quired for the project under applicable laws. 
‘‘(2) LEAD AGENCY RESPONSIBILITIES.— 
‘‘(A) IN GENERAL.—The lead agency, with 
the assistance of the project sponsor, shall make 
information available to the cooperating agen-
cies, as early as practicable in the environmental 
review process, regarding— 
‘‘(i) the environmental and socio-
economic 
resources 
located 
within 
the 
project area; and 
‘‘(ii) the general locations of the alter-
natives under consideration. 
‘‘(B) BASIS FOR INFORMATION.—Informa-
tion about resources in the project area may be 
based on existing data sources, including geo-
graphic information systems mapping. 
‘‘(3) 
COOPERATING
AGENCY
RESPONSIBIL-
ITIES.— 
‘‘(A) IN GENERAL.—Based on information 
received from the lead agency, cooperating agen-
cies shall promptly identify to the lead agency 
any major issues of concern regarding the poten-
tial environmental or socioeconomic impacts of a 
project.
184 
HR 3550 EAS 
‘‘(B) MAJOR
ISSUES
OF
CONCERN.—A 
major issue of concern referred to in subpara-
graph (A) may include any issue that could sub-
stantially delay or prevent an agency from 
granting a permit or other approval that is 
needed for a project, as determined by a cooper-
ating agency. 
‘‘(4) ISSUE RESOLUTION.—On identification of a 
major issue of concern under paragraph (3), or at 
any time upon the request of a project sponsor or the 
Governor of a State, the lead agency shall promptly 
convene a meeting with representatives of each of the 
relevant cooperating agencies, the project sponsor, and 
the Governor to address and resolve the issue. 
‘‘(5) NOTIFICATION.—If a resolution of a major 
issue of concern under paragraph (4) cannot be 
achieved by the date that is 30 days after the date on 
which a meeting under that paragraph is convened, 
the lead agency shall provide notification of the fail-
ure to resolve the major issue of concern to— 
‘‘(A) the heads of all cooperating agencies; 
‘‘(B) the project sponsor; 
‘‘(C) the Governor involved; 
‘‘(D) the Committee on Environment and 
Public Works of the Senate; and