administrative 
expenses 
under 
paragraph
(3)(C).
(8) TASK FORCE.—
(A) IN GENERAL.—The Secretary shall es-
tablish a national safe routes to school task
force composed of leaders in health, transpor-
tation, and education, including representatives
of appropriate Federal agencies, to study and
develop a strategy for advancing safe routes to
school programs nationwide.
(B) REPORT.—Not later than March 30,
2005, the Secretary shall transmit to Congress
a report containing the results of the study con-
ducted, and a description of the strategy devel-
oped, under subparagraph (A) and information
regarding the use of funds for infrastructure-re-
lated and noninfrastructure-related activities
under subparagraphs (A) and (B) of paragraph
(6).
(C) FUNDING.—The Secretary shall carry
out this paragraph using amounts set aside for
administrative 
expenses 
under 
paragraph
(3)(C).
(9) APPLICABILITY OF TITLE 23.—Funds made
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such
funds were apportioned under chapter 1 of title 23,
United States Code; except that such funds shall not
be transferable and shall remain available until ex-
pended and the Federal share of the cost of a
project or activity under this section shall be 100
percent. Notwithstanding any other provision of law,
projects assisted under this subsection shall be treat-
ed as projects on a Federal-aid system under such
chapter.
(10) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
(A) IN THE VICINITY OF SCHOOLS.—The
term ‘‘in the vicinity of schools’’ means, with
respect to a school, the area within bicycling
and walking distance of the school (approxi-
mately 2 miles).
(B) PRIMARY
AND
MIDDLE
SCHOOLS.—
The term ‘‘primary and middle schools’’ means
schools providing education from kindergarten
through eighth grade.
(C) STATE.—The term ‘‘State’’ has the
meaning such term has in section 101(a) of
title 23, United States Code.
(b) NONMOTORIZED TRANSPORTATION PILOT PRO-
GRAM.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish and carry out a nonmotorized transportation
pilot program to construct, in 4 communities se-
lected by the Secretary, a network of nonmotorized
transportation infrastructure facilities, including
sidewalks, bicycle lanes, and pedestrian and bicycle
trails, that connect directly with transit stations,
schools, residences, businesses, recreation areas, and
other community activity centers.
(2) PURPOSE.—The purpose of the program
shall be to demonstrate the extent to which bicycling
and walking can carry a significant part of the
transportation load, and represent a major portion
of the transportation solution, within selected com-
munities.
(3) GRANTS.—In carrying out the program, the
Secretary may make grants to State, local, and re-
gional agencies, that the Secretary determines are
suitably equipped and organized to carry out the ob-
jectives and requirements of this subsection. An
agency that receives a grant under this subsection
may suballocate grant funds to a nonprofit organiza-
tion to carry out the program under this subsection.
(4) APPLICABILITY OF TITLE 23.—Funds made
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such
funds were apportioned under chapter 1 of title 23,
United States Code; except that the Federal share of
the cost of a project carried out under this sub-
section shall be 80 percent, and such funds shall not
be transferable and shall remain available until ex-
pended.
(5) STATISTICAL
INFORMATION.—In carrying
out the program, the Secretary shall develop statis-
tical information on changes in motor vehicle, non-
motorized transportation, and public transportation
usage in communities participating in the program
and assess how such changes decrease congestion
and energy usage, increase the frequency of biking
and walking, and promote better health and a clean-
er environment.
(6) REPORTS.—The Secretary shall transmit to
Congress an interim report not later than September
30, 2007, and a final report not later than Sep-
tember 30, 2010, on the results of the program.
SEC. 1121. NATIONAL COMMISSIONS.
(a) NATIONAL COMMISSION ON FUTURE REVENUE
SOURCES TO SUPPORT THE HIGHWAY TRUST FUND.—
(1) ESTABLISHMENT.—There is established a
National Commission on Future Revenue Sources to
Support the Highway Trust Fund to conduct—
(A) a study evaluating alternative short-
term sources of Highway Trust Fund revenue
to support the requirements of section 1124;
and
(B) a study evaluating alternative long-
term sources of revenue to support the Highway
Trust Fund, considering the findings, conclu-
sions, and recommendations of a recent study
by the Transportation Research Board of the
National Academy of Sciences on alternatives to
the fuel tax to support highway program financ-
ing and other relevant prior research.
(2) FUNCTIONS.—The Commission shall—
(A) develop recommendations to generate
Highway Trust Fund revenue necessary to ac-
complish the requirements of section 1124;
(B) oversee a comprehensive investigation
of alternatives to replace the fuel tax as the
principal revenue source to support the High-
way Trust Fund over at least the next 30 years;
(C) consult with the Secretary of Trans-
portation and the Secretary of the Treasury to
assure that their views concerning essential at-
tributes of Highway Trust Fund revenue alter-
natives are understood;
(D) assure that State transportation agen-
cy views on alternative revenue sources to sup-
port State transportation improvement pro-
grams are appropriately considered and that
any recommended Federal financing strategy
take into account State financial requirements;
and
(E) make specific recommendations re-
garding actions that need to be taken to develop
alternative revenue sources to support the
Highway Trust Fund and when those actions
must be taken.
(3) SPECIFIC MATTERS TO BE ADDRESSED.—
The study under paragraph (1)(B)shall address
specifically—
(A) advantages and disadvantages of alter-
native revenue sources to meet anticipated Fed-
eral surface transportation financial require-
ments;
(B) the time frame within which actions
must be taken to transition from the fuel tax to
alternative revenue sources to support the
Highway Trust Fund;
(C) recommendations concerning the most
promising revenue sources to support long-term
Federal surface transportation financing re-
quirements;
(D) development of a broad transition
strategy to move from the current tax base to
new funding mechanisms, including the time
frame for various aspects of the transition
strategy;
(E) recommendations for additional re-
search that may be needed to implement rec-
ommended alternatives; and
(F) the extent to which revenues should re-
flect the relative use of the highway system.
(4) MATTERS TO CONSIDER AND EVALUATE.—
To the maximum extent feasible, the Commission, in
conducting the study under paragraph (1)(B), shall
consider and evaluate other related work that has
been done by the Department of Transportation, the
Department of Energy, the Transportation Research
Board, and others. In developing recommendations
under 
paragraph 
(2), 
the 
Commission 
shall
consider—
(A) the ability to generate sufficient reve-
nues to meet anticipated long term surface
transportation financing needs;
(B) the roles of the various levels of gov-
ernment and the private sector in meeting fu-
ture surface transportation financing needs;
(C) administrative costs, including enforce-
ment, to implement each option;
(D) potential taxpayer privacy concerns;
(E) likely technological advances that could
ease implementation of each option;
(F) the equity and economic efficiency of
each option;
(G) the flexibility of different options to
allow various pricing alternatives to be imple-
mented; and
(H) potential compatibility issues with
States tax mechanisms under each alternative.
(5) MEMBERSHIP.—
(A) COMPOSITION.—The Commission shall
be composed of nine members of whom—
(i) three members shall be appointed
by the Secretary;
(ii) two members shall be appointed
by the Speaker of the House of Represent-
atives;
(iii) one member shall be appointed by
the minority leader of the House of Rep-
resentatives;
(iv) two members shall be appointed
by the majority leader of the Senate; and
(v) one member shall be appointed by
the minority leader of the Senate.
(B) 
QUALIFICATIONS.—Members 
ap-
pointed under subparagraph (A) shall have ex-
perience in public finance, surface transpor-
tation program administration, managing orga-
nizations that use surface transportation facili-
ties, academic research into related issues, or
other activities that provide unique perspectives
on current and future requirements for revenue
sources to support the Highway Trust Fund.
(C) TERMS.—Members shall be appointed
for the life of the Commission.
(D) VACANCIES.—A vacancy on the Com-
mission shall be filled in the manner in which
the original appointment was made.
(E) TRAVEL
EXPENSES.—Members shall
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and
5703 of title 5, United States Code.
(F) CHAIRMAN.—The Chairman of the
Commission shall be elected by the members.
(6) STAFF.—
(A) IN GENERAL.—The Commission may
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the studies
under this subsection, but the Commission shall
provide strategic guidance for the studies.
(B) DETAIL STAFF.—Upon request of the
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the
Department of Transportation to the Commis-
sion to assist the Commission in carrying out
its duties under this subsection.
(C) COOPERATION.—The Secretary shall
cooperate with the Commission in conducting
the studies under this subsection, including pro-
viding the Commission with such nonconfiden-
tial data and information as necessary for con-
ducting and completing the study.
(7) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Commission, the Secretary
shall provide to the Commission, on a reimbursable
basis, the administrative support and services nec-
essary for the Commission to carry out its respon-
sibilities under this subsection.
(8) REPORTS AND RECOMMENDATIONS.—
(A) REVENUE
ACTIONS.—Not later than
September 30, 2005, the Commission shall
transmit to Congress a report on revenue ac-
tions that would support the requirements of
section 1124.
(B) ALTERNATIVE
LONG-TERM
SOURCES
OF REVENUE.—Not later than September 30,
2006, the Commission shall transmit to Con-
gress a report on the results of the study con-
ducted under paragraph (1)(B), relating to al-
ternative long-term sources of revenue to sup-
port the Highway Trust Fund, including rec-
ommendations to address the needs identified in
the study.
(9) TERMINATION.—The Commission shall ter-
minate on the 180th day following the date of trans-
mittal of the report under paragraph (8)(B). By
such 180th day, the Commission shall deliver all
records and papers of the Commission to the Archi-
vist of the United States for deposit in the National
Archives.
(10) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit
Account) $1,500,000 for each of fiscal years 2004
and 2005 to carry out this subsection.
(11) APPLICABILITY
OF
TITLE
23.—Funds
made available to carry out this subsection shall be
available for obligation in the same manner as if
such funds were apportioned under chapter 1 of title
23, United States Code; except that the Federal
share of the cost of activities carried out under this
subsection shall be 100 percent, and such funds
shall remain available until expended.
(b) DECLARATION OF POLICY REGARDING FUTURE
OF THE INTERSTATE HIGHWAY SYSTEM STUDY.—Section
101(b) of title 23, United States Code, is amended by
striking the last paragraph and inserting the following: ‘‘It
is further declared that it is in the national interest to
preserve and enhance the Dwight D. Eisenhower National
System of Interstate and Defense Highways to meet the
Nation’s needs for the 21st century. The current urban
and long distance personal travel and freight movement
demands have surpassed the vision of the original Inter-
state System and travel demand patterns are expected to
change. Continued planning for and investment in the
Interstate System is critical to assure it adequately meets
the changing travel demands of the future. Among the
foremost needs that the Interstate System must provide
are safe, efficient, and reliable (1) national and inter-
regional personal mobility, (2) flow of interstate com-
merce, and (3) travel movements essential for national se-
curity. To the maximum extent, actions under this title
should address congestion, safety, and freight transpor-
tation to provide for a strong and vigorous national econ-
omy. The Interstate System is hereby declared to be the
Nation’s premiere highway system, essential for the Na-
tion’s economic vitality, national security, and general wel-
fare. The Secretary of Transportation is directed to take
appropriate actions to preserve and enhance the Interstate
System to meet the needs of the 21st century in accord-
ance with this title.’’.
(c) NATIONAL COMMISSION ON FUTURE OF INTER-
STATE HIGHWAY SYSTEM.—
(1) ESTABLISHMENT.—There is established a
National Commission on the Future of the Dwight
D. Eisenhower National System of Interstate and
Defense Highways (in this subsection referred to as
the ‘‘Interstate System’’).
(2) FUNCTION.—The Commission shall—
(A) conduct a study of the current condi-
tion and future of the Interstate System and
develop a conceptual plan with alternative ap-
proaches for the future of the Interstate System
to assure that the Interstate System will con-
tinue to serve the needs of the Nation;
(B) assure that State transportation agen-
cy views are considered; and
(C) make specific recommendations regard-
ing those design standards, Federal policies,
and legislative changes that must be made to
assure the national interests are served in meet-
ing future Interstate System needs.
(3) SPECIFIC MATTERS TO BE ADDRESSED.—
The Commission shall assure that the study under
this subsection specifically addresses the following:
(A) CURRENT
CONDITION.—The current
condition and performance of the Interstate
System, including physical condition of bridges
and pavements and operational characteristics
and performance, shall be examined, relying
primarily on existing data sources.
(B) FUTURE ASSESSMENT.—The future of
the Interstate System, based on a range of leg-
islative and policy approaches for 15-, 30-, and
50-year horizons.
(4) SPECIFIC
ISSUES
AND
DETAILS
TO
AD-
DRESS.—The following specific issues and details
shall be addressed as a part of the study under this
subsection:
(A) 
DEMOGRAPHICS.—Expected 
demo-
graphics and business uses that impact trans-
portation.
(B) USAGE.—Expected system use and ef-
fects of changing vehicle types, fleet size and
weights, and traffic volumes.
(C) NATURAL
DISASTER.—Seismic and
other vulnerabilities and their potential impacts.
(D) DESIGN
STANDARDS.—Desirable de-
sign policies and standards for future improve-
ments, including safety improvement and addi-
tional access points.
(E) SYSTEM WIDE NEEDS.—Identification
of both urban and rural needs.
(F) POTENTIAL SYSTEM EXPANSION, UP-
GRADES, OR OTHER CHANGES.—Deployment of
advanced materials and intelligent technologies;
100
critical multi-state rural corridors needing ca-
pacity, safety, and operational enhancements;
urban and multi-state corridor additions; by-
passes of major cities that ensure efficient long-
haul travel; improvements to inter-modal link-
ages; strategies to enhance asset preservation;
and implementation strategies.
(G) COMMUNITY
VALUES.—Consideration
of alternative approaches to maintaining or en-
hancing community values in those neighbor-
hoods adjacent to the Interstate System.
(H) ENVIRONMENTAL ISSUES.—Consider-
ation of alternative approaches to addressing
environmental 
concerns 
relative 
to 
rec-
ommended alternatives.
(I) SYSTEM
PERFORMANCE.—Evaluation
and assessment of the current and future capa-
bilities for conducting system-wide real-time
performance data collection and analysis, traffic
monitoring, system operations and manage-
ment.
(5) ALTERNATIVES.—A range of policy rec-
ommendations shall be developed as a part of the
plan under this subsection to address identified fu-
ture needs of the Interstate System. The alternatives
101
shall include funding needs and potential approaches
to provide those funds.
(6) MEMBERSHIP.—
(A) COMPOSITION.—The Commission shall
be composed of nine members of whom—
(i) three members shall be appointed
by the Secretary;
(ii) two members shall be appointed
by the Speaker of the House of Represent-
atives;
(iii) one member shall be appointed by
the minority leader of the House of Rep-
resentatives;
(iv) two members shall be appointed
by the majority leader of the Senate; and
(v) one member shall be appointed by
the minority leader of the Senate.
(B) 
QUALIFICATIONS.—Members 
ap-
pointed under subparagraph (A) shall be ap-
pointed from among individuals that have a
concern for maintaining a strong role for the
Interstate System in the future of the Nation
and may include representatives from Federal,
State, and local governments, other transpor-
tation authorities or agencies, and organizations
102
representing surface transportation owners and
operators.
(C) TERMS.—Members shall be appointed
for the life of the Commission.
(D) VACANCIES.—A vacancy in the Com-
mission shall be filled in the manner in which
the original appointment was made.
(E) TRAVEL
EXPENSES.—Member shall
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and
5703 of title 5, United States Code.
(F) CHAIRMAN.—The Chairman of the
Commission shall be elected by the members.
(7) STAFF.—
(A) IN GENERAL.—The Commission may
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the study under
this subsection, but the Commission shall pro-
vide strategic guidance for the study.
(B) DETAIL STAFF.—Upon request of the
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the
Department of Transportation to the Commis-
103
sion to assist the Commission in carrying out
its duties under this subsection.
(C) COOPERATION.—The Secretary shall
cooperate with the Commission in the study, in-
cluding providing the Commission with such
nonconfidential data and information as nec-
essary for conducting and completing the study.
(8) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Commission, the Secretary
shall provide to the Commission, on a reimbursable
basis, the administrative support and services nec-
essary for the Commission to carry out its respon-
sibilities under this subsection.
(9) REPORT
AND
RECOMMENDATIONS.—Not
later than September 30, 2006, the Commission
shall transmit to Congress a final report on the re-
sults of the study conducted under this subsection,
including recommendations to address the needs
identified in the study.
(10) TERMINATION.—The Commission shall
terminate on the 180th day following the date of
transmittal of the report under paragraph (9). By
such 180th day, the Commission shall deliver all
records and papers of the Commission to the Archi-
104
vist of the United States for deposit in the National
Archives.
(11) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the
Highway Trust Funds (other than the Mass Transit
Account) to carry out this subsection $1,000,000 for
each of fiscal years 2005 and 2006.
(12) APPLICABILITY
OF
TITLE
23, UNITED
STATES
CODE.—Funds authorized to be appro-
priated by this section shall be available for obliga-
tion in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States
Code; except that the Federal share of the cost of
activities carried out under this subsection shall be
100 percent and such funds shall remain available
until expended.
SEC. 1122. ADJUSTMENTS FOR THE SURFACE TRANSPOR-
TATION EXTENSION ACT OF 2003.
[Reserved]
SEC. 1123. ROADWAY SAFETY.
(a) ROAD SAFETY.—
(1) IN
GENERAL.—The Secretary shall enter
into an agreement to assist in the activities of a na-
tional nonprofit organization that is dedicated solely
to improving public road safety—
105
(A) by improving the quality of data per-
taining to public road hazards and design fea-
tures that affect or increase the severity of
motor vehicle crashes;
(B) by developing and carrying out a pub-
lic awareness campaign to educate State and
local transportation officials, public safety offi-
cials, and motorists regarding the extent to
which public road hazards and design features
are a factor in motor vehicle crashes; and
(C) by promoting public road safety re-
search and technology transfer activities.
(2) FUNDING.—There is authorized to be ap-
propriated from the Highway Trust Fund (other
than the Mass Transit Account) $500,000 for each
of fiscal years 2004 through 2009 to carry out this
subsection.
(3) APPLICABILITY OF TITLE 23.—Funds made
available by this subsection shall be available for ob-
ligation in the same manner as if such funds were
apportioned under chapter 1 of title 23, United
States Code, except that the funds shall remain
available until expended.
(b) BICYCLE AND PEDESTRIAN SAFETY GRANTS.—
106
(1) IN GENERAL.—The Secretary shall make
grants to a national, not-for-profit organization en-
gaged in promoting bicycle and pedestrian safety—
(A) to operate a national bicycle and pe-
destrian clearinghouse;
(B) to develop information and educational
programs; and
(C) to disseminate techniques and strate-
gies for improving bicycle and pedestrian safety.
(2) FUNDING.—There is authorized to be ap-
propriated from the Highway Trust Fund (other
than the Mass Transit Account) $500,000 for each
of fiscal years 2004 through 2009 to carry out this
subsection.
(3) APPLICABILITY OF TITLE 23.—Funds made
available by this subsection shall be available for ob-
ligation in the same manner as if such funds were
apportioned under chapter 1 of title 23, United
States Code, except that the funds shall remain
available until expended.
SEC. 1124. EQUITY REQUIREMENT.
(a) GENERAL PROVISIONS.—The Secretary may not
apportion before August 1, 2006, any funds for any of
the programs referred to in subsection (b) for fiscal year
107
2006 unless, after the date of enactment of this Act, a
law has been enacted that—
(1) increases the guaranteed rate of return pur-
suant to section 105 of title 23, United States Code,
to 92 percent in fiscal year 2006, 93 percent in fis-
cal year 2007, 94 percent in fiscal year 2008, and
95 percent in fiscal year 2009; and
(2) requires that each State receive apportion-
ments for such programs for each of such fiscal
years that in the aggregate are at least equal to the
greater of—
(A) the State’s minimum guaranteed rate
of return required under paragraph (1); and
(B) the State’s prior fiscal year’s appor-
tioned highway funds for programs referred in
subsection (b) plus an amount equal to the
State’s prior year apportioned funds for such
programs multiplied by the percentage increase
in the consumer price index during the 12-
month period ending June 30 of the calendar
year in which the fiscal year begins.
(b) APPLICABILITY.—The withholding of apportioned
funds under subsection (a) shall apply to the following
programs:
108
(1) The National Highway System program
under section 103(b) of title 23, United States Code.
(2) The high priority projects program under
section 117 of such title.
(3) The Interstate maintenance program under
section 119 of such title.
(4) The surface transportation program under
section 133 of such title.
(5) Metropolitan planning under chapter 52 of
title 49, United States Code.
(6) The highway bridge replacement and reha-
bilitation program under section 144 of title 23,
United States Code.
(7) The congestion mitigation and air quality
improvement program under section 149 of such
title.
(8) The recreational trails program under sec-
tion 206 of such title.
(9) The Appalachian development highway sys-
tem under subtitle IV of title 40, United States
Code.
(10) The freight intermodal connectors program
under section 1303 of this Act.
(11) The coordinated border infrastructure pro-
gram under section 1302 of this Act.
109
(12) The high risk rural road safety improve-
ment program under section 1403 of this Act.
(13) The safe routes to schools program under
section 1120 of this Act.
(14) The minimum guarantee program under
section 105 of title 23, United States Code.
(c) CONSIDERATION OF COMMISSION FINDINGS.—In
considering a law that increases the guaranteed rate of
return referred to in subsection (a), Congress should con-
sider the findings of the report on alternative short-term
sources of Highway Trust Fund revenue to be published
by the National Commission on Future Revenue Sources
to Support the Highway Trust Fund pursuant to section
1121 of this Act.
Subtitle B—Congestion Relief
SEC. 1201. MOTOR VEHICLE CONGESTION RELIEF.
(a) IN GENERAL.—Title 23, United States Code, is
amended by inserting after section 138 the following:
‘‘§ 139. Motor vehicle congestion relief
‘‘(a) IN GENERAL.—Each State that has an urban-
ized area with an urbanized area population of over
200,000 individuals shall obligate in each of fiscal years
2004 through 2009 a portion of the State’s apportion-
ments under section 104(b) in such fiscal year, as cal-
culated under subsection (b), for congestion relief activi-
110
ties in such urbanized areas in accordance with this sec-
tion.
‘‘(b) CALCULATION OF AMOUNT.—The portion of a
State’s apportionments for a fiscal year to be obligated
for congestion relief activities under subsection (a) shall
be determined by multiplying—
‘‘(1) the total of amounts apportioned to the
State under each of paragraphs (1), (2), (3), and (4)
of section 104(b) in such fiscal year; by
‘‘(2) 10 percent; by
‘‘(3) the percentage of the State’s population
residing in urbanized areas of the State with an ur-
banized area population of over 200,000 individuals.
‘‘(c) ALLOCATION
BETWEEN
UNDER
ONE
AND
UNDER THREE CONGESTION RELIEF ACTIVITIES.—Of
the total amount of a State’s apportionments to be obli-
gated for congestion relief activities for a fiscal year as
calculated under subsection (b)—
‘‘(1) 40 percent shall be obligated for under one
congestion relief activities;
‘‘(2) 35 percent shall be obligated for under
three congestion relief activities; and
‘‘(3) 25 percent shall be obligated at the discre-
tion of the State department of transportation for 1
or more of the following:
111
‘‘(A) Under one congestion relief activities.
‘‘(B) Under three congestion relief activi-
ties.
‘‘(C) Capital costs for transit projects that
are eligible for assistance under chapter 53 of
title 49.
‘‘(D) Demand relief projects and activities
that shift demand to non-peak hours or to other
modes of transportation or that reduce the
overall level of demand for roads through such
means as telecommuting, ridesharing, alter-
native work hour programs, and value pricing.
‘‘(d) OBLIGATION OF AMOUNTS.—
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by
a State for congestion relief activities under sub-
section (a) shall be allocated among the individual
programs for which funds are apportioned under
sections 
104(b)(1), 
104(b)(2), 
104(b)(3), 
and
104(b)(4).
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed
as requiring a State to obligate proportional or equal
amounts 
under 
sections 
104(b)(1), 
104(b)(2),
112
104(b)(3), and 104(b)(4) for any congestion relief
activity under this section.
‘‘(e) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or
otherwise affecting the applicability of the requirements
of this chapter (including requirements relating to the eli-
gibility of a project for assistance under the program, the
location of the project, and the Federal-share payable on
account of the project) to amounts apportioned to a State
for a program under section 104(b) that are obligated by
the State for congestion relief activities under subsection
(a).
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section.
‘‘(g) TRANSFERS.—
‘‘(1) IN
GENERAL.—A State may transfer a
portion of the amount that the State must obligate
for under one congestion relief activities in a fiscal
year under this section to the amount the State
must obligate for under three congestion relief ac-
tivities under this section if the State certifies to the
Secretary that there are no under one congestion re-
lief activities for which such portion can be obligated
in such fiscal year and the Secretary does not dis-
113
approve such transfer within 30 days after the date
of such certification.
‘‘(2) LIMITATION.—The amount that a State
may transfer in a fiscal year under this subsection
may not reduce the amount the State must obligate
for under one congestion relief activities to less than
10 percent of the total amount of the State’s appor-
tionments to be obligated for congestion relief activi-
ties for such fiscal year as calculated under sub-
section (b).
‘‘(3) TREATMENT.—Amounts transferred by a
State under this subsection for a fiscal year shall be
included in the amount of the State’s apportion-
ments allocated for under three congestion relief ac-
tivities for such fiscal year under subsection (c)(2).
‘‘(h) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) CONGESTION RELIEF ACTIVITIES.—
‘‘(A) IN GENERAL.—The term ‘congestion
relief activity’ means any activity, project, or
program that has as its primary purpose, as de-
termined by the State transportation depart-
ment, the relief of motor vehicle congestion.
‘‘(B) INCLUSIONS.—Such term includes
the following:
114
‘‘(i) Relief of motor vehicle congestion
through additional capacity, construction
of additional lanes, improvements to inter-
changes, improved access to major termi-
nals, construction of parallel roads, con-
struction of truck only lanes, and major
arterial improvements.
‘‘(ii) Transportation systemwide oper-
ational improvements targeted at increas-
ing motor vehicle travel reliability through
such means as incident management pro-
grams, traffic monitoring and surveillance,
and traveler information initiatives.
‘‘(iii) Maximizing efficient use of ex-
isting motor vehicle travel capacity through
such means as reversible lanes, coordinated
traffic signalization, and managed lanes or
other lane management strategies.
‘‘(C) EXCLUSIONS.—Such term does not
include demand relief projects and activities
that shift demand to non-peak hours or to other
modes of transportation or that reduce the
overall level of demand for roads through such
means as telecommuting, ridesharing, alter-
native work hour programs, and value pricing.
115
‘‘(2) UNDER ONE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under one congestion relief activ-
ity’ means a congestion relief activity that—
‘‘(A) will be completed within one year
after the date of commencement of onsite im-
provements;
‘‘(B) has a total projected cost of less than
$1,000,000; and
‘‘(C) will improve conditions in the applica-
ble urbanized area or is an element of the con-
gestion management system of the applicable
metropolitan planning organization.
‘‘(3) UNDER THREE CONGESTION RELIEF AC-
TIVITIES.—The term ‘under three congestion relief
activities’ means congestion relief activities that—
‘‘(A) will be completed within 3 years after
the date of commencement of onsite improve-
ments; and
‘‘(B) will improve conditions in the applica-
ble urbanized area or is an element of the con-
gestion management system of the applicable
metropolitan planning organization.’’.
(b) CONFORMING AMENDMENT.—The analysis for
chapter I of such title is amended by inserting after the
item relating to section 138 the following:
‘‘139. Motor vehicle congestion relief.’’.
116
(c) MOTOR VEHICLE DEFINED.—Title 23, United
States Code, is amended—
(1) in section 154(a)(2), relating to the defini-
tion of motor vehicle, by inserting ‘‘streets, roads,
and’’ before ‘‘highways’’;
(2) by redesignating paragraph (2) of section
154(a) as paragraph (38);
(3) by moving such redesignated paragraph
from section 154(a) to the end of section 101(a);
(4) by redesignating paragraphs (3) and (4) of
section 154(a) as paragraphs (2) and (3), respec-
tively;
(5) in section 153(i)—
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively;
(6) in section 164(a)(4) by striking ‘‘means’’
and all that follows through ‘‘rail line or’’ and in-
serting ‘‘does not include’’; and
(7) in section 405(f)—
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3), (4),
(5), and (6) as paragraphs (2), (3), (4), and
(5).
117
SEC. 1202. TRANSPORTATION SYSTEMS MANAGEMENT AND
OPERATIONS.
(a) DEFINITIONS.—
(1) OPERATING
COSTS
FOR
TRAFFIC
MONI-
TORING, 
MANAGEMENT, 
AND
CONTROL.—Section
101(a)(17) of title 23, United States Code, is
amended by inserting ‘‘transportation systems man-
agement and operations and’’ after ‘‘associated
with’’.
(2) 
OPERATIONAL
IMPROVEMENT.—Section
101(a)(18)(A)(i) of such title is amended—
(A) by inserting ‘‘transportation systems
management and operations, including’’ after
‘‘for’’; and
(B) by inserting ‘‘equipment and programs
for transportation response to natural disas-
ters,’’ after ‘‘incident management programs,’’.
(3) TRANSPORTATION SYSTEMS MANAGEMENT
AND OPERATIONS.—Section 101(a) of such title is
further amended by adding at the end the following:
‘‘(39) TRANSPORTATION
SYSTEMS
MANAGE-
MENT 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
118
the implementation of multimodal and inter-
modal, cross-jurisdictional systems, services,
and projects designed to preserve capacity and
improve the security, safety, and reliability of
Federal-aid highways.
‘‘(B) INCLUDED ACTIVITIES AND IMPROVE-
MENTS.—The term includes regional operations
collaboration and coordination activities be-
tween transportation and public safety agencies
and improvements such as traffic detection and
surveillance, 
arterial 
management, 
freeway
management, demand management, work zone
management, emergency management, elec-
tronic toll collection, automated enforcement,
traffic operations measures to improve capacity,
traffic signal coordination, optimization of traf-
fic signal timing, traffic incident management,
roadway weather management, traveler infor-
mation services, commercial vehicle operations,
traffic control, freight management, and coordi-
nation of highway, rail, transit, bicycle, and pe-
destrian operations.’’.
(b) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5)
of such title is amended by inserting ‘‘improve transpor-
119
tation systems management and operations,’’ after ‘‘inter-
sections,’’.
(c) SURFACE TRANSPORTATION PROGRAM ELIGI-
BILITY.—Section 133(b) of such title is amended—
(1) by redesignating paragraphs (13) and (14)
as paragraphs (12) and (13), respectively; and
(2) by adding at the end the following:
‘‘(14) Regional transportation operations col-
laboration and coordination activities that are asso-
ciated with regional improvements, including activi-
ties for traffic incident management, technology de-
ployment, emergency management and response,
traveler information, and regional congestion re-
lief.’’.
(d) NATIONAL HIGHWAY SYSTEM ELIGIBILITY.—
Section 103(b)(6) of such title is amended by adding at
the end the following:
‘‘(Q) Capital, operating, and systems main-
tenance costs for transportation systems man-
agement and operations.’’.
(e) TRANSPORTATION SYSTEMS MANAGEMENT AND
OPERATIONS.—Subchapter I of chapter 1 of such title is
further amended by adding at the end the following:
120
‘‘§ 166. Transportation systems management and op-
erations
‘‘(a) AUTHORITY.—The Secretary may—
‘‘(1) encourage transportation system man-
agers, operators, public safety officials, and trans-
portation planners within an urbanized area, who
are actively engaged in and responsible for con-
ducting activities relating to day-to-day manage-
ment, operations, public safety, and planning of
transportation facilities and services, to collaborate
and coordinate on a regional level in a continuous
and sustained manner for improved transportation
systems management and operations, including, at a
minimum—
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared
by all transportation and public safety partici-
pants for how the region’s systems should be
managed, operated, and measured;
‘‘(B) sharing of information among opera-
tors, service providers, public safety officials,
and the general public; and
‘‘(C) guiding, in a regionally-coordinated
manner, the implementation of regional trans-
portation system management and operations
initiatives, including emergency evacuation and
121
response, traffic incident management, tech-
nology deployment, and traveler information
systems delivery, in a manner consistent with
and integrated into the ongoing metropolitan
and statewide transportation planning processes
and regional intelligent transportation system
architecture, if required; and
‘‘(2) encourage States to establish a system of
basic real-time monitoring capability for the surface
transportation system and provide the capability and
means to share that data among agencies (including
highway, transit, and public safety agencies), juris-
dictions (including States, cities, counties, and areas
represented by metropolitan planning organizations),
private-sector entities, and the traveling public.
‘‘(b) EXECUTION.—To support the successful execu-
tion of transportation systems management and oper-
ations activities, the Secretary may undertake the fol-
lowing activities:
‘‘(1) Assist and cooperate with other Federal
departments and agencies, State and local govern-
ments, metropolitan planning organizations, private
industry representatives, and other interested parties
to improve regional collaboration and real-time infor-
mation sharing between transportation system man-
122
agers and operators, public safety officials, emer-
gency managers, and the general public to increase
the security, safety, and reliability of Federal-aid
highways.
‘‘(2) Issue, if necessary, new guidance or regu-
lations for the procurement of transportation system
management and operations facilities, equipment,
and services, including equipment procured in prepa-
ration for natural disasters and emergencies, system
hardware, software, and software integration serv-
ices.’’.
(f) CONFORMING AMENDMENT.—The analysis for
such chapter is further amended by adding at the end the
following:
‘‘166. Transportation systems management and operations.’’.
(g) INTELLIGENT TRANSPORTATION SYSTEM PRO-
CUREMENT POLICY.—
(1) STUDY.—The Secretary shall—
(A) conduct a study of the current policies
and practices for the procurement of intelligent
transportation system facilities, equipment, and
services; and
(B) develop a conceptual plan with alter-
native approaches for expediting and stream-
lining such procurements at the State level.
123
(2) RECOMMENDATIONS.—Based on the results
of the study, the Secretary shall make recommenda-
tions in the report under paragraph (4) regarding
procurement standards, including recommendations
regarding any changes in Federal and State stat-
utes, regulations, and policies necessary to ensure
that national interests are served in meeting future
intelligent transportation system needs.
(3) SPECIFIC MATTERS TO BE ADDRESSED.—
The study under this subsection shall specifically ad-
dress the following:
(A) CURRENT
CONDITION.—The current
practices and policies relating to procurement of
intelligent 
transportation 
system 
facilities,
equipment, and services, including equipment
procured in preparation for natural disasters
and emergencies, system hardware, software,
and software integration services.
(B) ASSESSMENT
OF
NEED
FOR
POLICY
REFORM.—The ability of current practices and
policies to achieve the successful implementa-
tion of intelligent transportation system goals
and the need for national policy reform to expe-
dite and streamline procurements necessary to
meet such goals.
124
(C) ALTERNATIVES.—The range of legisla-
tive, regulatory, and policy alternatives to ad-
dress identified needs and goals, including fund-
ing needs.
(D) 
RECOMMENDATIONS.—Recommenda-
tions regarding procurement standards, includ-
ing recommendations regarding any changes in
Federal and State statutes, regulations, and
policies necessary for expedited and streamlined
procurements.
(4) REPORT
AND
RECOMMENDATIONS.—Not
later than September 30, 2005, the Secretary shall
transmit to the appropriate committees of Congress
a final report regarding the results of the study con-
ducted under this subsection and recommendations
to address the needs identified in such study.
(5) 
INITIATION
OF
RULEMAKING
PRO-
CEEDING.—To the extent any recommendation made
by the Secretary under this subsection may be im-
plemented by regulation, the Secretary shall initiate
a rulemaking proceeding to address such rec-
ommendation not later than the 90th day following
the date of submission of the report under para-
graph (4).
125
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit
Account) $1,000,000 in fiscal year 2004 to carry out
this subsection.
(7) APPLICABILITY OF TITLE 23.—Funds made
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such
funds were apportioned under chapter 1 of title 23,
United States Code; except that the Federal share of
the cost of the study under this subsection shall be
100 percent and such funds shall remain available
until expended.
SEC. 1203. REAL-TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish
a real-time system management information pro-
gram to provide, in all States, the capability to mon-
itor, in real-time, the traffic and travel conditions of
the Nation’s major highways and to share that in-
formation to improve the security of the surface
transportation system, to address congestion prob-
lems, to support improved response to weather
events and surface transportation incidents, and to
126
facilitate national and regional highway traveler in-
formation.
(2) PURPOSES.—The purposes of the real-time
system management information program are to—
(A) establish, in all States, a system of
basic real-time information for managing and
operating the surface transportation system;
(B) identify longer range real-time high-
way and transit monitoring needs and develop
plans and strategies for meeting such needs;
and
(C) provide the capability and means to
share that data with State and local govern-
ments and the traveling public.
(b) NATIONAL STEERING COMMITTEE.—
(1) IN GENERAL.—The Secretary shall establish
a national steering committee to assist in the devel-
opment of data exchange formats under subsection
(c).
(2) REPRESENTATIVES.—The national steering
committee shall consist of representatives of State
transportation departments, metropolitan planning
organizations, local governments, nonprofit entities,
the private sector, and academia.
127
(3) PURPOSE.—The purpose of the national
steering committee shall be to provide guidance re-
garding the content and uniformity of data exchange
formats.
(c) DATA EXCHANGE FORMATS.—Not later than 2
years after the date of enactment of this Act, the Sec-
retary shall establish data exchange formats based on rec-
ommendations of the steering committee established under
subsection (b) to ensure that the data provided by highway
and transit monitoring systems, including statewide inci-
dent reporting systems, can readily be exchanged across
jurisdictional boundaries, facilitating nationwide avail-
ability of information.
(d) REGIONAL INTELLIGENT TRANSPORTATION SYS-
TEM ARCHITECTURE.—
(1) ADDRESSING
INFORMATION
NEEDS.—As
State and local governments develop or update re-
gional intelligent transportation system architec-
tures, described in section 940.9 of title 23, Code of
Federal Regulations, such governments shall explic-
itly address real-time highway and transit informa-
tion needs and the systems needed to meet such
needs, including addressing coverage, monitoring
systems, data fusion and archiving, and methods of
128
exchanging or sharing highway and transit informa-
tion.
(2) DATA EXCHANGE.—States shall incorporate
the data exchange formats established by the Sec-
retary under subsection (c) to ensure that the data
provided by highway and transit monitoring systems
may readily be exchanged with State and local gov-
ernments and may be made available to the traveling
public.
(e) ELIGIBILITY.—Subject to project approval by the
Secretary, a State may obligate funds apportioned to the
State under sections 104(b)(1), 104(b)(2), and 104(b)(3)
of title 23, United States Code, for activities related to
the planning and deployment of real-time monitoring ele-
ments that advance the goals and purposes described in
subsection (a).
(f) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or
otherwise affecting the applicability of the requirements
of chapter 1 of title 23, United States Code (including
requirements relating to the eligibility of a project for as-
sistance under the program, the location of the project,
and the Federal-share payable on account of the project),
to amounts apportioned to a State for a program under
129
section 104(b) that are obligated by the State for activities
and projects under this section.
(g) STATEWIDE INCIDENT REPORTING SYSTEM DE-
FINED.—In this section, the term ‘‘statewide incident re-
porting system’’ means a statewide system for facilitating
the real-time electronic reporting of surface transportation
incidents to a central location for use in monitoring the
event, providing accurate traveler information, and re-
sponding to the incident as appropriate.
SEC. 1204. EXPEDITED NATIONAL INTELLIGENT TRANSPOR-
TATION SYSTEMS DEPLOYMENT PROGRAM.
(a) ESTABLISHMENT.—The Secretary shall establish
a comprehensive program to accelerate the integration,
interoperability, and deployment of intelligent transpor-
tation systems in order to improve the performance of the
surface transportation system in metropolitan and rural
areas.
(b) SELECTION OF MODEL PROJECTS.—Under the
program, the Secretary may make grants, through com-
petitive solicitation, for projects that will serve as models
to improve transportation efficiency, promote surface
transportation safety (including safe freight movement),
increase traffic flow (including the flow of intermodal trav-
el at ports of entry), reduce emissions of air pollutants,
improve traveler information, enhance alternative trans-
130
portation modes, build on existing intelligent transpor-
tation system projects, and promote tourism.
(c) OTHER PROJECTS, PROGRAMS, AND ACTIVI-
TIES.—Under the program, the Secretary may make
grants for projects, programs, and activities in metropoli-
tan and rural areas that—
(1) contribute to national deployment goals and
objectives outlined in the national intelligent trans-
portation system program plan;
(2) promote cooperation among agencies, juris-
dictions, and the private sector, as evidenced by
signed memoranda of understanding that clearly de-
fine the responsibilities and relations of all parties to
a partnership arrangement, including institutional
relationships and financial agreements needed to
support deployment of intelligent transportation sys-
tems;
(3) encourage private sector involvement and fi-
nancial commitment to such deployment to the max-
imum extent practicable through innovative financial
arrangements, especially public-private partnerships,
including arrangements that generate revenue to off-
set public investment costs;
(4) enhance fully integrated intelligent trans-
portation system deployment;
131
(5) create technical capacity for effective oper-
ations and maintenance of such systems;
(6) improve safety, mobility, geographic and re-
gional diversity, and economic development in de-
ployment of such systems;
(7) advance deployment of the 511 traveler in-
formation program; and
(8) advance deployment of other national sys-
tems, including a statewide incident reporting sys-
tem, wireless e-911 system, and road weather infor-
mation system.
(d) APPLICABILITY OF TITLE 23, UNITED STATES
CODE.—Funds authorized to be appropriated under sec-
tion 1101(a)(16) of this Act shall be available for obliga-
tion to carry out subsection (c)(7) in the same manner
and to the same extent as if such funds were apportioned
under chapter 1 of title 23, United States Code; except
that the Federal share of the cost of projects carried out
under subsection (c)(7) shall be 80 percent and such funds
shall remain available until expended.
SEC. 1205. INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT.
(a) PURPOSE.—The purpose of this section is to en-
sure that a minimum of $3,000,000,000 of the amounts
authorized to be appropriated for the National Highway
132
System, Interstate maintenance, surface transportation,
and congestion mitigation and air quality improvement
programs for fiscal years 2004 through 2009 is utilized
to expand deployment of intelligent transportation sys-
tems.
(b) IN GENERAL.—Chapter 1 of title 23, United
States Code, is amended by inserting after section 149 the
following:
‘‘§ 150. Deployment of intelligent transportation sys-
tems
‘‘(a) IN GENERAL.—In each of fiscal years 2004
through 2009, each State shall obligate a portion of the
funds apportioned to the State under sections 104(b)(1),
104(b)(2), 104(b)(3), and 104(b)(4) for such fiscal year,
calculated under subsection (b), for projects described in
subsection (c) that support deployment of intelligent
transportation systems in the State.
‘‘(b) CALCULATION OF AMOUNT.—The portion of a
State’s apportionments to be obligated under subsection
(a) for projects described in subsection (c) in a fiscal year
shall be determined by multiplying $500,000,000 by the
ratio that—
‘‘(1) the aggregate of amounts apportioned to
the State for such fiscal year under sections
133
104(b)(1), 104(b)(2), 104(b)(3), and 104(b)(4);
bears to
‘‘(2) the aggregate of amounts apportioned to
all States for such fiscal year under such sections.
‘‘(c) INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT PROJECTS.—Projects for which funds must be
obligated under this section include the following:
‘‘(1) PERFORMANCE.—Establishment and im-
plementation of operations systems and services that
improve performance in the areas of traffic oper-
ations, emergency response to surface transportation
incidents, surface transportation incident manage-
ment, weather event response management by State
and local authorities, surface transportation network
and facility management, construction and work
zone management, and traffic flow information.
‘‘(2) NETWORKS.—Conducting activities that
support the creation of networks that link metropoli-
tan and rural surface transportation systems into an
integrated data network, capable of collecting, shar-
ing, and archiving transportation system traffic con-
dition and performance information.
‘‘(3) SAFETY.—Implementation of intelligent
transportation system technologies that improve
134
highway safety through linkages connecting the vehi-
cle, the infrastructure, and information to the driver.
‘‘(4) OPERATION
AND
MANAGEMENT.—Provi-
sion of services necessary to ensure the efficient op-
eration and management of intelligent transpor-
tation systems infrastructure, including costs associ-
ated with communications, utilities, rent, hardware,
software, labor, administrative costs, training, and
technical services.
‘‘(5) INTERAGENCY
SUPPORT.—Provision of
support for institutional relationships between trans-
portation agencies, police, emergency medical serv-
ices, private emergency operators, freight operators,
and shippers.
‘‘(6) 
PLANNING.—Conducting 
cross-jurisdic-
tional planning and deployment of regional transpor-
tation systems operations and management ap-
proaches.
‘‘(d) OBLIGATION OF AMOUNTS.—
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by
a State for projects under subsection (c) that sup-
port deployment of intelligent transportation systems
in such State under subsection (a) shall be allocated
among the individual programs for which funds are
135
apportioned under sections 104(b)(1), 104(b)(2),
104(b)(3), and 104(b)(4).
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed
as requiring a State to obligate proportional or equal
amounts 
under 
sections 
104(b)(1), 
104(b)(2),
104(b)(3), and 104(b)(4) for any congestion relief
activity under this section.
‘‘(e) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed as altering or
otherwise affecting the applicability of the requirements
of this chapter (including requirements relating to the eli-
gibility of a project for assistance under the program, the
location of the project, and the Federal-share payable on
account of the project) to amounts apportioned to a State
for a program under section 104(b) that are obligated by
the State for projects under this section.
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section.’’.
(c) CONFORMING AMENDMENT.—The analysis for
such chapter is amended by inserting after the item relat-
ing to section 149 the following:
‘‘150. Deployment of intelligent transportation systems.’’.
136
SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT
SUPPORT 
DEPLOYMENT 
OF 
INTELLIGENT
TRANSPORTATION SYSTEMS.
(a) CATEGORICAL EXCLUSIONS.—Not later than one
year after the date of enactment of this Act, the Secretary
shall initiate a rulemaking process to establish, to the ex-
tent appropriate, categorical exclusions for activities that
support the deployment of intelligent transportation infra-
structure and systems from the requirement that an envi-
ronmental assessment or an environmental impact state-
ment be prepared under section 102 of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
(42 U.S.C. 4332) in compliance with the standards for
categorical exclusions established by that Act.
(b) NATIONWIDE PROGRAMMATIC AGREEMENT.—
(1) DEVELOPMENT.—The Secretary shall de-
velop a nationwide programmatic agreement gov-
erning the review of activities that support the de-
ployment of intelligent transportation infrastructure
and systems in accordance with section 106 of the
National Historic Preservation Act (16 U.S.C. 470f)
and the regulations of the Advisory Council on His-
toric Preservation.
(2) CONSULTATION.—The Secretary shall de-
velop the agreement under paragraph (1) in con-
sultation with the National Conference of State His-
137
toric Preservation Officers and the Advisory Council
on Historic Preservation established under title II of
the National Historic Preservation Act (26 U.S.C.
470i et seq.) and after soliciting the views of other
interested parties.
(c) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE AND SYSTEMS DEFINED.—In this section, the term
‘‘intelligent transportation infrastructure and systems’’
means intelligent transportation infrastructure and intel-
ligent transportation systems, as such terms are defined
in section 5607.
SEC. 1207. STATE ASSUMPTION OF RESPONSIBILITIES FOR
CERTAIN PROGRAMS AND PROJECTS.
(a) IN GENERAL.—Subchapter I of chapter 1 of title
23, United States Code, is amended by adding at the end
the following:
‘‘§ 168. State assumption of responsibilities for cer-
tain programs and projects
‘‘(a) ASSUMPTION OF SECRETARY’S RESPONSIBIL-
ITIES UNDER APPLICABLE FEDERAL LAWS.—
‘‘(1) PILOT PROGRAM.—
‘‘(A) 
ESTABLISHMENT.—The 
Secretary
may establish a pilot program under which
States may assume the responsibilities of the
138
Secretary under any Federal laws subject to the
requirements of this section.
‘‘(B) FIRST 3 FISCAL YEARS.—In the first
3 fiscal years following the date of enactment of
this section, the Secretary may allow up to 5
States to participate in the pilot program.
‘‘(2) SCOPE
OF
PROGRAM.—Under the pilot
program, the Secretary may assign, and a State may
assume, any of the Secretary’s responsibilities (other
than responsibilities relating to federally recognized
Indian tribes) for environmental reviews, consulta-
tion, or decisionmaking or other actions required
under any Federal law as such requirements apply
to the following projects:
‘‘(A) Projects funded under section 104(h).
‘‘(B) Transportation enhancement activi-
ties under section 133, as such term is defined
in section 101(a)(35).
‘‘(C) 
Projects 
as 
defined 
in 
section
101(a)(39) and section 5607 of the Transpor-
tation Equity Act: A Legacy for Users.
‘‘(3) LIMITATIONS.—
‘‘(A) PROCEDURAL AND SUBSTANTIVE RE-
QUIREMENTS.—A State that assumes the re-
sponsibilities of the Secretary under this section
139
shall be subject to the same procedural and
substantive requirements as would apply if the
responsibilities were carried out by the Sec-
retary. When a State assumes responsibilities
for carrying out a Federal law under this sec-
tion, the State assents to Federal jurisdiction
and shall be solely responsible and solely liable
for complying with and carrying out that law
instead of the Secretary.
‘‘(B) 
ASSUMPTION
OF
RESPONSIBIL-
ITIES.—Any responsibility of the Secretary not
assumed by the State in a memorandum of un-
derstanding shall remain a responsibility of the
Secretary.
‘‘(C) POWERS
OF
OTHER
AGENCIES.—
Nothing in this section preempts or limits any
power, jurisdiction, responsibility, or authority
of an agency, other than the Department of
Transportation, with respect to a project.
‘‘(b) AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall enter
into a memorandum of understanding with a State
participating in the pilot program setting forth the
responsibilities to be assigned under subsection
140
(a)(2) and the terms and conditions under which the
assignment is being made.
‘‘(2) CERTIFICATION.—Before the Secretary en-
ters into a memorandum of understanding with a
State under paragraph (1), the State shall certify
that the State has in effect laws (including regula-
tions) applicable to projects carried out and funded
under this title and chapter 53 of title 49 that au-
thorize the State to carry out the responsibilities
being assumed.
‘‘(3) MAXIMUM DURATION.—A memorandum of
understanding with a State under this section shall
be established for an initial period of no more than
3 years and may be renewed by mutual agreement
on a periodic basis for periods of not more than 3
years.
‘‘(4) COMPLIANCE.—
‘‘(A) IN GENERAL.—After entering into a
memorandum of understanding under para-
graph (1), the Secretary shall review and deter-
mine compliance by the State with the memo-
randum of understanding.
‘‘(B) RENEWALS.—The Secretary shall
take into account the performance of a State
under the pilot program when considering re-
141
newal of a memorandum of understanding with
the State under the program.
‘‘(5) ACCEPTANCE OF FEDERAL COURTS JURIS-
DICTION.—A memorandum of understanding with a
State under this section shall include a provision
under which the State consents to accept the juris-
diction of the Federal courts for the compliance, dis-
charge, and enforcement of any responsibility of the
Secretary that the State may assume under the
memorandum.
‘‘(6) 
TERMINATION
OF
AGREEMENTS.—A
memorandum of understanding with a State under
this section shall include a provision authorizing the
Secretary to terminate the agreement if the Sec-
retary, after providing an opportunity for a hearing,
issues a finding that the State is not in compliance
with the terms of the agreement.
‘‘(c) SELECTION OF STATES FOR PILOT PROGRAM.—
‘‘(1) APPLICATION.—To be eligible to partici-
pate in the pilot program, a State shall submit to
the Secretary an application that contains such in-
formation as the Secretary may require. At a min-
imum, an application shall include—
‘‘(A) a description of the projects or class-
es of projects for which the State seeks to as-
142
sume responsibilities under subsection (a)(2);
and
‘‘(B) a certification that the State has the
capability to assume such responsibilities.
‘‘(2) PUBLIC NOTICE.—Before entering into a
memorandum of understanding allowing a State to
participate in the pilot program, the Secretary
shall—
‘‘(A) publish notice in the Federal Register
of the Secretary’s intent to allow the State to
participate in the program, including a copy of
the State’s application to the Secretary and the
terms of the proposed agreement with the
State; and
‘‘(B) provide an opportunity for public
comment.
‘‘(3) SELECTION
CRITERIA.—The Secretary
may approve the application of a State to assume re-
sponsibilities under the program only if—
‘‘(A) the requirements under paragraph
(2) have been met; and
‘‘(B) the Secretary determines that the
State has the capability to assume the respon-
sibilities.
143
‘‘(4) OTHER FEDERAL AGENCY VIEWS.—Before
assigning to a State a responsibility of the Secretary
that requires the Secretary to consult with another
Federal agency, the Secretary shall solicit the views
of the Federal agency.
‘‘(d) STATE DEFINED.—With respect to the rec-
reational trails program, the term ‘State’ means the State
agency designated by the Governor of the State in accord-
ance with section 206(c)(1).
‘‘(e) PRESERVATION OF PUBLIC INTEREST CONSID-
ERATION.—Nothing in this section shall be construed to
limit the requirements under any applicable law providing
for the consideration and preservation of the public inter-
est, including public participation and community values
in transportation decisionmaking.
‘‘(f) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming responsibilities of the Secretary under
this section, a State agency entering into a memorandum
of understanding under subsection (b) is deemed to be a
Federal agency to the extent the State is carrying out the
Secretary’s responsibilities under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), this
title, and any other provision of Federal law.’’.
144
(b) CONFORMING AMENDMENT.—The analysis for
subchapter I of chapter 1 of such title is amended by add-
ing at the end the following:
‘‘168. State assumption of responsibilities for certain programs and projects.’’.
SEC. 1208. HOV FACILITIES.
(a) IN GENERAL.—Subchapter I of chapter 1 of title
23, United States Code, is amended by adding at the end
the following:
‘‘§ 167. HOV facilities
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY
OF
STATE
AGENCIES.—A
State agency that has jurisdiction over the operation
of a HOV facility shall establish the occupancy re-
quirements of vehicles operating on the facility.
‘‘(2) OCCUPANCY
REQUIREMENT.—Except as
otherwise provided by this section, no fewer than 2
occupants per vehicle may be required for use of a
HOV facility.
‘‘(b) EXCEPTIONS.—Notwithstanding the occupancy
requirements of subsection (a)(2), the following exceptions
shall apply with respect to a State agency operating a
HOV facility:
‘‘(1) MOTORCYCLES AND BICYCLES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility.
145
‘‘(B) SAFETY EXCEPTION.—A State agen-
cy may restrict use of the HOV facility by mo-
torcycles or bicycles (or both) if the agency cer-
tifies to the Secretary that such use would cre-
ate a safety hazard and the Secretary accepts
the certification. The Secretary may accept a
certification under this subparagraph only after
the Secretary publishes notice of the certifi-
cation in the Federal Register and provides an
opportunity for public comment.
‘‘(2) PUBLIC
TRANSPORTATION
VEHICLES.—
The State agency may allow public transportation
vehicles to use the HOV facility if the agency—
‘‘(A) establishes requirements for clearly
identifying the vehicles; and
‘‘(B) establishes procedures for enforcing
the restrictions on the use of the facility by
such vehicles.
‘‘(3) HIGH OCCUPANCY TOLL VEHICLES.—The
State agency may allow vehicles not otherwise ex-
empt pursuant to this subsection to use the HOV fa-
cility if the operators of such vehicles pay a toll
charged by the agency for use of the facility and the
agency—