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‘‘§ 22301. Light density rail line pilot projects
‘‘(a) GRANTS.—The Secretary of Transportation may
make grants to States that have State rail plans described
in section 22102 (1) and (2) to fund pilot projects that dem-
onstrate the relationship of light density railroad services
to the statutory responsibilities of the Secretary, including
those under title 23.
‘‘(b) LIMITATIONS.—Grants under this section may be
made only for pilot projects for making capital improve-
ments to, and rehabilitating, publicly and privately owned
rail line structures, and may not be used for providing op-
erating assistance.
‘‘(c) PRIVATE OWNER CONTRIBUTIONS.—Grants made
under this section for projects on privately owned rail line
structures shall include contributions by the owner of the
rail line structures, based on the benefit to those structures,
as determined by the Secretary.
‘‘(d) STUDY.—The Secretary shall conduct a study of
the pilot projects carried out with grant assistance under
this section to determine the public interest benefits associ-
ated with the light density railroad networks in the States
and their contribution to a multimodal transportation sys-
tem. Not later than March 31, 2003, the Secretary shall re-
port to Congress any recommendations the Secretary con-
siders appropriate regarding the eligibility of light density
rail networks for Federal infrastructure financing.
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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry out
this section $10,000,000 for each of the fiscal years 1998,
1999, 2000, 2001, 2002, and 2003. Such funds shall remain
available until expended.’’.
(b) CLERICAL AMENDMENT.—The table of chapters for
subtitle V is amended by inserting after the item relating
to chapter 221 the following new item:
‘‘223. Light Density Rail Line Pilot Projects ..............................22301.’’.
SEC. 3702. SECTION 1407.
(a) Strike section 1407 of the bill.
(b) In the table of sections for the bill, strike the item
relating to section 1407.
SEC. 3703. DESIGNATION OF NEW MEXICO COMMERCIAL
ZONE.
(a) COMMERCIAL ZONE DEFINED.—Notwithstanding
the provisions of section 13902(c)(4)(A) of title 49, United
States Code, in this section, for the transportation of prop-
erty only, the term ‘‘commercial zone’’ means a zone con-
taining lands adjacent to, and commercially a part of, one
or more municipalities with respect to which the exception
described in section 13506(b)(1) of title 49, United States
Code, applies.
(b) DESIGNATION OF ZONE.—
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(1) IN GENERAL.—The area described in para-
graph (2) is designated as a commercial zone, to be
known as the ‘‘New Mexico Commercial Zone’’.
(2) DESCRIPTION OF AREA.—The area described
in this paragraph is the area that is comprised of
Dona Ana County and Luna County in New Mexico.
(c) SAVINGS PROVISION.—Nothing in this section shall
affect any action commenced or pending before the Sec-
retary of Transportation or Surface Transportation Board
before the date of enactment of this Act.
TITLE IV—OZONE AND PARTICU-
LATE MATTER STANDARDS
SEC. 4101. FINDINGS AND PURPOSE.
(a) The Congress finds that—
(1) there is a lack of air quality monitoring data
for fine particle levels, measured as PM2.5, in the
United States and the States should receive full fund-
ing for the monitoring efforts;
(2) such data would provide a basis for designat-
ing areas as attainment or nonattainment for any
PM2.5 national ambient air quality standards pursu-
ant to the standards promulgated in July 1997;
(3) the President of the United States directed
the Administrator in a memorandum dated July 16,
1997, to complete the next periodic review of the par-
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ticulate matter national ambient air quality stand-
ards by July 2002 in order to determine ‘‘whether to
revise or maintain the standards’’;
(4) the Administrator has stated that 3 years of
air quality monitoring data for fine particle levels,
measured as PM2.5 and performed in accordance with
any applicable Federal reference methods, is appro-
priate for designating areas as attainment or non-
attainment pursuant to the July 1997 promulgated
standards; and
(5) the Administrator has acknowledged that in
drawing boundaries for attainment and nonattain-
ment areas for the July 1997 ozone national air qual-
ity standards, Governors would benefit from consider-
ing implementation guidance from EPA on drawing
area boundaries.
(b) The purposes of this title are—
(1) to ensure that 3 years of air quality monitor-
ing data regarding fine particle levels are gathered
for use in the determination of area attainment or
nonattainment designations respecting any PM2.5 na-
tional ambient air quality standards;
(2) to ensure that the Governors have adequate
time to consider implementation guidance from EPA
on drawing area boundaries prior to submitting area
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designations respecting the July 1997 ozone national
ambient air quality standards;
(3) to ensure that implementation of the July
1997 revisions of the ambient air quality standards
are consistent with the purposes of the President’s Im-
plementation Memorandum dated July 16, 1997.
SEC. 4102. PARTICULATE MATTER MONITORING PROGRAM.
(a) Through grants under section 103 of the Clean Air
Act the Administrator of the Environmental Protection
Agency shall use appropriated funds no later than fiscal
year 2000 to fund 100 percent of the cost of the establish-
ment, purchase, operation and maintenance of a PM2.5
monitoring network necessary to implement the national
ambient air quality standards for PM2.5 under section 109
of the Clean Air Act. This implementation shall not result
in a diversion or reprogramming of funds from other Fed-
eral, State or local Clean Air Act activities. Any funds pre-
viously diverted or reprogrammed from section 105 Clean
Air Act grants for PM2.5 monitors must be restored to State
or local air programs in fiscal year 1999.
(b) EPA and the States shall ensure that the national
network (designated in subsection (a)) which consists of the
PM2.5 monitors necessary to implement the national ambi-
ent air quality standards is established by December 31,
1999.
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(c) The Governors shall be required to submit designa-
tions for each area following promulgation of the July 1997
PM2.5 national ambient air quality standard within 1 year
after receipt of 3 years of air quality monitoring data per-
formed in accordance with any applicable Federal reference
methods for the relevant areas. Only data from the monitor-
ing network designated in subsection (a) and other Federal
reference method PM2.5 monitors shall be considered for
such designations. In reviewing the State Implementation
Plans the Administrator shall consider all relevant mon-
itoring data regarding transport of PM2.5.
(d) The Administrator shall promulgate designations
of nonattainment areas no later than 1 year after the ini-
tial designations required under subsection (c) are required
to be submitted. Notwithstanding the previous sentence, the
Administrator shall promulgate such designations not later
than December 31, 2005.
(e) The Administrator shall conduct a field study of
the ability of the PM2.5 Federal Reference Method to dif-
ferentiate those particles that are larger than 2.5
micrograms in diameter. This study shall be completed and
provided to Congress no later than 2 years from the date
of enactment of this legislation.
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SEC. 4103. OZONE DESIGNATION REQUIREMENTS.
(a) The Governors shall be required to submit designa-
tions of nonattainment areas within 2 years following the
promulgation of the July 1997 ozone national ambient air
quality standards.
(b) The Administrator shall promulgate final designa-
tions no later than 1 year after the designations required
under subsection (a) are required to be submitted.
SEC. 4104. ADDITIONAL PROVISIONS.
Nothing in sections 4101–4103 shall be construed by
the Administrator of Environmental Protection Agency or
any court, State, or person to affect any pending litigation
or to be a ratification of the ozone or PM2.5 standards.
TITLE V—MASS TRANSIT
SEC. 5001. SHORT TITLE.
This title may be cited as the ‘‘Federal Transit Act
of 1998’’.
SEC. 5002. AUTHORIZATIONS.
(a) IN GENERAL.—Section 5338 of title 49, United
States Code, is amended to read as follows:
‘‘§ 5338. Authorizations
‘‘(a) SECTIONS 5303–5308, 5310, 5311, 5313, 5314,
5317, 5320, 5320a, 5327, AND 5334 (a) AND (c).—
‘‘(1) MASS
TRANSIT
ACCOUNT
AMOUNTS.—Not
more than the following amounts are available to the
Secretary from the Account to carry out sections 5303
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through 5308, 5310, 5311, 5313, 5314, 5317, 5320,
5320a, 5327, and subsections (a) and (c) of section
5334:
‘‘(A) $2,698,790,000 for fiscal year 1998.
‘‘(B) $2,773,934,000 for fiscal year 1999.
‘‘(C) $2,849,079,000 for fiscal year 2000.
‘‘(D) $2,925,965,000 for fiscal year 2001.
‘‘(E) $3,004,667,000 for fiscal year 2002.
‘‘(F) $3,085,725,000 for fiscal year 2003.
‘‘(2) OTHER AMOUNTS.—In addition to amounts
made available under paragraph (1), not more than
the following amounts may be appropriated to the
Secretary to carry out section 5303 through 5308,
5310, 5311, 5313, 5314, 5317, 5320, 5320a, 5327, and
subsections (a) and (c) of section 5334:
‘‘(A) $738,000,000 for fiscal year 1998.
‘‘(B) $756,000,000 for fiscal year 1999.
‘‘(C) $774,000,000 for fiscal year 2000.
‘‘(D) $793,000,000 for fiscal year 2001.
‘‘(E) $812,000,000 for fiscal year 2002.
‘‘(F) $832,000,000 for fiscal year 2003.
‘‘(b) SECTION 5309.—Not more than the following
amounts are available to the Secretary from the Account
to carry out section 5309:
‘‘(1) $2,221,210,000 for fiscal year 1998.
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‘‘(2) $2,278,770,000 for fiscal year 1999.
‘‘(3) $2,340,501,000 for fiscal year 2000.
‘‘(4) $2,403,661,000 for fiscal year 2001.
‘‘(5) $2,468,315,000 for fiscal year 2002.
‘‘(6) $2,534,904,000 for fiscal year 2003.
‘‘(c) SECTION 5315.—
‘‘(1) IN
GENERAL.—The Secretary shall make
available in equal amounts from amounts provided
under paragraphs (3) and (4) of subsection (g) of this
section, not more than $4,000,000 for each of fiscal
years 1998 through 2003, to carry out section 5315.
‘‘(2) WORKPLACE
SAFETY.—Not more than
$1,000,000 shall be appropriated to the Secretary for
each of fiscal years 1998 through 2003, to carry out
section 5315(a)(15).
‘‘(d) SECTION 5316.—Not more than the following
amounts may be appropriated to the Secretary from the
Fund (other than from the Account) for each of fiscal years
1998 through 2003:
‘‘(1) $250,000 to carry out section 5316(a).
‘‘(2) $3,000,000 to carry out section 5316(b).
‘‘(3) $1,000,000 to carry out section 5316(c).
‘‘(4) $1,000,000 to carry out section 5316(d).
‘‘(5) $1,000,000 to carry out section 5316(e).
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‘‘(e) SECTION 5317.—Not more than $6,000,000 is
available to the Secretary from the Fund (other than from
the Account) for each of fiscal years 1998 through 2003,
to carry out section 5317.
‘‘(f) SECTION 5307.—Amounts remaining available for
each fiscal year under subsection (a) of this section, after
allocation under subsections (g), (h), and (i)(2) of this sec-
tion, are available to carry out section 5307.
‘‘(g) PLANNING, PROGRAMMING, AND RESEARCH.—In
each fiscal year, before apportioning amounts made avail-
able or appropriated under subsection (a) of this section,
an amount equal to 3 percent of amounts made available
or appropriated under subsections (a) and (b), less the
amounts authorized for purposes of section 5320a, of this
section is available as follows:
‘‘(1) 45 percent for metropolitan planning ac-
tivities under section 5303(g).
‘‘(2) 5 percent to carry out section 5311(b)(2).
‘‘(3) 20 percent to carry out State programs
under section 5313.
‘‘(4) 30 percent to carry out the national pro-
gram under section 5314.
‘‘(h) OTHER SET-ASIDES.—In each fiscal year, before
apportioning amounts made available or appropriated
under subsection (a) of this section, of amounts made avail-
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able or appropriated under subsections (a) and (b), less the
amounts authorized for purposes of section 5320a, of this
section—
‘‘(1) not more than 0.96 percent is available for
administrative expenses to carry out subsections (a)
and (c) through (f) of section 5334;
‘‘(2) not more than 1.34 percent is available for
transportation services to elderly individuals and in-
dividuals with disabilities under the formula under
section 5310(a); and
‘‘(3) $6,000,000 is available to carry out section
5317 for each of fiscal years 1998 through 2003.
‘‘(i) LIMITATIONS.—Of amounts made available—
‘‘(1) under subsection (a)(2), less the amounts
authorized for purposes of section 5320a, of this sec-
tion—
‘‘(A) 3.5 percent may be used to finance
programs and activities, including administra-
tive costs, under section 5310;
‘‘(B) to finance research, development, and
demonstration projects under section 5312(a),
1.5 percent may be used to increase the informa-
tion and technology available to provide im-
proved mass transportation service and facilities
planned and designed to meet the special needs
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with amounts made available under subsection (a)(2)
of this section, is a contractual obligation of the
United States Government to pay the Government’s
share of the cost of the project, only to the extent that
amounts are provided in advance in an appropria-
tions Act.
‘‘(k) EARLY APPROPRIATIONS AND AVAILABILITY OF
AMOUNTS.—
‘‘(1) EARLY APPROPRIATION.—Amounts appro-
priated under subsection (a)(2) of this section to
carry out section 5311 may be appropriated in the
fiscal year before the fiscal year in which the appro-
priation is available for obligation.
‘‘(2) 
AVAILABILITY
OF
AMOUNTS.—Amounts
made available or appropriated under subsections (a),
(b), and (g), paragraphs (1) and (2) of subsection (h),
and subsection (i)(2) of this section shall remain
available until expended.
‘‘(l) SECTION 5308.—In each fiscal year, before appor-
tioning or allocating amounts made available or appro-
priated under subsections (a) and (b), of amounts made
available or appropriated under subsections (a) or (b) of
this section, not more than $200,000,000 is available to
carry out section 5308, with $100,000,000 made available
from amounts made available from amounts provided
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under subsection (a)(2) of this section and $100,000,000
made available from amounts provided under subsection (b)
of this section.
‘‘(m) SECTION 5320a.—In each fiscal year, before ap-
portioning amounts made available or appropriated under
subsection (a), of amounts appropriated under subsection
(a)(2) of this section, not more than $250,000,000 is avail-
able to carry out section 5320a.
‘‘(n) TRANSIT EQUITY PROGRAM.—
‘‘(1) IN
GENERAL.—The purpose of this sub-
section is to further the national interest by providing
proportional increases in funding for national mass
transit programs, commensurate with increases in
national highway programs, in order to ensure bal-
anced improvement in the national intermodal trans-
portation system.
‘‘(2) FUNDING.—There are authorized to be ap-
propriated to carry out this subsection, from the Gen-
eral Fund of the Treasury of the United States, the
following amounts:
‘‘(A) $1,000,000,000 for fiscal year 1999.
‘‘(B) $1,000,000,000 for fiscal year 2000.
‘‘(C) $1,000,000,000 for fiscal year 2001.
‘‘(D) $1,000,000,000 for fiscal year 2002.
‘‘(E) $1,000,000,000 for fiscal year 2003.
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‘‘(3) ELIGIBLE USES.—Amounts made available
to carry out this subsection shall be available for cap-
ital projects eligible under sections 5307, 5309, 5310,
and 5311, including meeting obligations of the United
States associated with multiyear funding commit-
ments, full funding grant agreements under section
5309, and innovative financing activities.
‘‘(4) CONTINGENT
COMMITMENT
AUTHORITY.—
Notwithstanding subsection (g)(4) of section 5309, the
total estimated amount of future obligations of the
Government and contingent commitments to incur ob-
ligations covered by all outstanding letters of intent
and full financing grant agreements may be greater
than the amounts authorized under subsection (b) of
this section by an amount equal to not more than the
amount authorized to be appropriated under para-
graph (6) of this subsection as of the end of fiscal year
2003.
‘‘(5) FIXED GUIDEWAY MODERNIZATION.—In ad-
dition to amounts authorized in section 5338(b), the
following amounts are authorized to be appropriated
to the Secretary, to be added to amounts allocated
under section 5309(m)(1)(A) for fixed guideway mod-
ernization:
‘‘(A) $100,000,000 for fiscal year 1999.
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‘‘(B) $100,000,000 for fiscal year 2000.
‘‘(C) $100,000,000 for fiscal year 2001.
‘‘(D) $100,000,000 for fiscal year 2002.
‘‘(E) $100,000,000 for fiscal year 2003.
‘‘(6) CAPITAL PROJECTS FOR FIXED GUIDEWAY
SYSTEMS.—
‘‘(A) IN GENERAL.—In addition to amounts
authorized in under subsection (b) of this section,
the following amounts are authorized to be ap-
propriated to the Secretary, to be added to
amounts allocated under section 5309(m)(1)(B)
for capital projects for new fixed guideway sys-
tems and extensions to existing fixed guideway
systems:
‘‘(i) $470,000,000 for fiscal year 1999.
‘‘(ii) $470,000,000 for fiscal year 2000.
‘‘(iii) $470,000,000 for fiscal year
2001.
‘‘(iv) $470,000,000 for fiscal year 2002.
‘‘(v) $470,000,000 for fiscal year 2003.
‘‘(B) FERRY BOAT SYSTEMS.—Not less than
2.8 percent of the amount made available under
subparagraph (A) in any fiscal year shall be
available for capital projects for existing and
new fixed guideway systems that are ferry boats,
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ferry terminal facilities, that are approaches to
ferry terminal facilities in the noncontiguous
States.
‘‘(7) BUSES AND RELATED EQUIPMENT.—In ad-
dition to amounts authorized in section 5338(b), the
following amounts are authorized to be appropriated
to the Secretary, to be added to amounts allocated
under section 5309(m)(1)(C) to replace, rehabilitate,
and purchase buses and related equipment and to
construct bus-related facilities:
‘‘(A) $80,000,000 for fiscal year 1999.
‘‘(B) $80,000,000 for fiscal year 2000.
‘‘(C) $80,000,000 for fiscal year 2001.
‘‘(D) $80,000,000 for fiscal year 2002.
‘‘(E) $80,000,000 for fiscal year 2003.
‘‘(8) URBANIZED AREAS; ELDERLY INDIVIDUALS
AND DISABLED INDIVIDUALS.—
‘‘(A) IN GENERAL.—In addition to amounts
authorized in section 5338(a) for activities under
sections 5307 and 5310, the following amounts
are authorized to be appropriated to the Sec-
retary, to be added to amounts made available
for activities under section 5307 for urbanized
areas and for activities under section 5310 for
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elderly individuals and individuals with disabil-
ities:
‘‘(i) $250,000,000 for fiscal year 1999.
‘‘(ii) $250,000,000 for fiscal year 2000.
‘‘(iii) $250,000,000 for fiscal year
2001.
‘‘(iv) $250,000,000 for fiscal year 2002.
‘‘(v) $250,000,000 for fiscal year 2003.
‘‘(B) ALLOCATION.—Of the amount appro-
priated under this paragraph for each fiscal
year—
‘‘(i) 97 percent is available for activi-
ties under section 5307; and
‘‘(ii) 3 percent is available for activi-
ties under section 5310.
‘‘(9) OTHER THAN URBANIZED AREAS.—In addi-
tion to amounts authorized in section 5338(a) for
areas other than urbanized areas, the following
amounts are authorized to be appropriated to the Sec-
retary, to be added to amounts made available for as-
sistance for areas other than urbanized areas under
section 5311:
‘‘(A) $100,000,000 for fiscal year 1999.
‘‘(B) $100,000,000 for fiscal year 2000.
‘‘(C) $100,000,000 for fiscal year 2001.
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‘‘(D) $100,000,000 for fiscal year 2002.
‘‘(E) $100,000,000 for fiscal year 2003.
‘‘(o) DEFINITIONS.—In this section—
‘‘(1) the term ‘Account’ means the Mass Transit
Account of the Highway Trust Fund;
‘‘(2) the term ‘Fund’ means the Highway Trust
Fund established under section 9503 of the Internal
Revenue Code of 1986; and
‘‘(3) the term ‘Secretary’ means the Secretary of
Transportation.’’.
(b) WORK AGREEMENTS AS OBLIGATIONS.—
Section 5309(g)(3)(B) of title 49, United States
Code, is amended by adding at the end the following:
‘‘The work agreement shall state that the work agree-
ment is not an obligation of the Government.’’.
(c) TECHNICAL
AND CONFORMING AMENDMENTS.—
Chapter 53 of title 49, United States Code, is amended—
(1) in section 5318(d), by striking ‘‘5338(j)(5)’’
and inserting ‘‘5338(i)(3)’’; and
(2) 
in 
section 
5333(b)(1), 
by 
striking
‘‘5338(j)(5)’’ each place that term appears and insert-
ing ‘‘5338(i)(3)’’.
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SEC. 5003. CAPITAL PROJECTS AND SMALL AREA FLEXIBIL-
ITY.
(a) IN GENERAL.—Section 5302 of title 49, United
States Code, is amended—
(1) in subsection (a)(1)—
(A) in subparagraph (A), by inserting ‘‘in-
telligent transportation systems,’’ after ‘‘rights
agreements,’’;
(B) in subparagraph (C), by striking ‘‘or’’
at the end;
(C) in subparagraph (D), by striking the
period at the end and inserting a semicolon; and
(D) by adding at the end the following:
‘‘(E) preventive maintenance;
‘‘(F) the leasing of equipment and facilities
for use in mass transportation;
‘‘(G) the introduction of new technology,
through innovative and improved products, into
mass transportation; or
‘‘(H) a mass transportation improvement
that enhances economic development or incor-
porates private investment, including commer-
cial and residential development, pedestrian and
bicycle access to a mass transportation facility,
and the renovation and improvement of historic
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transportation facilities, because the improve-
ment—
‘‘(i) enhances the effectiveness of a
mass transportation project and is related
physically or functionally to that mass
transportation project or establishes new or
enhanced coordination between mass trans-
portation and other transportation;
‘‘(ii) provides a fair share of revenue
for mass transportation that will be used
for mass transportation; and
‘‘(iii) provides nonfixed route para-
transit transportation services in accord-
ance with section 223 of the Americans with
Disabilities 
Act 
of 
1990 
(42 
U.S.C.
12143);’’; and
(2) by adding at the end the following:
‘‘(c) ELIGIBLE COSTS OF PROJECTS THAT ENHANCE
URBAN ECONOMIC DEVELOPMENT OR INCORPORATE PRI-
VATE INVESTMENT.—Eligible costs for a capital project de-
scribed in subsection (a)(1)(H)—
‘‘(1) include property acquisition, demolition of
existing structures, site preparation, utilities, build-
ing foundations, walkways, open space, safety ele-
ments (such as lighting, surveillance, and community
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police and security services) that protect a transit
project eligible under this chapter, and a capital
project for, and improving, equipment or a facility
for an intermodal transfer facility or transportation
mall; and
‘‘(2) do not include construction of a commercial
revenue-producing facility or a part of a public facil-
ity not related to mass transportation, except that, if
such facilities incorporate community services such as
daycare, health care, and public safety, the portion of
the facilities related to such community services are
eligible costs under this chapter.’’.
(b) SMALL AREA FLEXIBILITY.—Section 5307(b)(1) of
title 49, United States Code, is amended by adding at the
end the following: ‘‘The Secretary may also make grants
under this section to finance the operating cost of equipment
and facilities for use in mass transportation in an urban-
ized area with a population of less than 200,000.’’.
(c) DISCRETIONARY GRANTS
AND LOANS.—Section
5309 of title 49, United States Code, is amended—
(1) in subsection (a)(1)—
(A) by striking subparagraphs (D) and (E);
and
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(B) by redesignating subparagraphs (F)
and (G) as subparagraphs (D) and (E), respec-
tively; and
(2) in subsection (f)—
(A) by striking ‘‘(f)’’ and all that follows
through ‘‘(1) Each’’ and inserting the following:
‘‘(f) REQUIRED PAYMENTS.—Each’’; and
(B) by striking paragraph (2).
SEC. 5004. METROPOLITAN PLANNING.
(a) IN GENERAL.—Section 5303 of title 49, United
States Code, is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) DEVELOPMENT REQUIREMENTS.—
‘‘(1) 
IN
GENERAL.—To 
carry 
out 
section
5301(a), metropolitan planning organizations des-
ignated under subsection (c) of this section, in co-
operation with the States and mass transportation
operators, shall develop transportation plans and pro-
grams for urbanized areas of the State.
‘‘(2) PLAN CONTENTS.—The plans and programs
developed under paragraph (1) for each metropolitan
area shall provide for the development and integrated
management and operation of transportation systems
and facilities (including pedestrian walkways and bi-
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cycle transportation facilities) that will function as
an intermodal transportation system for the metro-
politan area and as an integral part of an inter-
modal transportation system for the State and the
United States.
‘‘(3) DEVELOPMENT PROCESS.—The development
process for the plans and programs shall provide for
consideration of all modes of transportation and shall
be continuing, cooperative, and comprehensive to the
degree appropriate, based on the complexity of the
transportation problems to be addressed.
‘‘(b) SCOPE OF PLANNING PROCESS.—
‘‘(1) IN GENERAL.—The metropolitan transpor-
tation planning process for a metropolitan area
under this section and sections 5304 through 5306
shall provide for consideration of—
‘‘(A) supporting the economic vitality of the
metropolitan area, especially by enabling global
competitiveness, productivity, and efficiency;
‘‘(B) increasing the safety and security of
the transportation system for motorized and non-
motorized users;
‘‘(C) increasing the accessibility and mobil-
ity options available to people and for freight;
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‘‘(D) protecting and enhancing the environ-
ment, promoting energy conservation and im-
proved quality of life, and coordinating land-use
and transportation plans and programs;
‘‘(E) 
enhancing 
the 
integration 
and
connectivity of the transportation system, across
and between modes, for people and freight;
‘‘(F) promoting efficient system manage-
ment and operation; and
‘‘(G) emphasizing the preservation of the ex-
isting transportation system.
‘‘(2) GOALS.—In cooperation with the State and
mass transportation operators, and with opportunity
for public review and comment, the metropolitan
planning organization shall establish goals that relate
to the factors described in paragraph (1), and propose
projects, programs, and strategies to achieve those
goals.’’;
(2) in subsection (c)—
(A) in paragraph (1), by striking subpara-
graph (A) and inserting the following:
‘‘(A) by agreement between the chief executive of-
ficer of the State and units of general purpose local
government that together represent not less than 60
percent of the affected population (including the cen-
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tral city, as defined by the Bureau of the Census) and
60 percent of such units of government; or’’;
(B) in paragraph (2)—
(i) by striking ‘‘In a metropolitan
area’’ and all that follows through ‘‘shall in-
clude’’ and inserting ‘‘Each policy board of
a metropolitan planning organization that
serves an area designated as a transpor-
tation management area when designated or
redesignated under this subsection shall con-
sist of’’; and
(ii) by striking ‘‘officials of authori-
ties’’ and inserting ‘‘officials of public agen-
cies’’;
(C) in paragraph (3), by striking ‘‘in an
urbanized area’’ and all that follows through ‘‘of-
ficer decides’’ and inserting ‘‘within an existing
metropolitan planning area only if the chief ex-
ecutive officer of the State and the existing met-
ropolitan organization determine’’; and
(D) in paragraph (5)—
(i) in subparagraph (A)—
(I) by striking ‘‘75’’ and inserting
‘‘60’’; and
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(II) by striking ‘‘as defined by the
Secretary of Commerce)’’ and inserting
‘‘or cities, as defined by the Bureau of
the Census) and 60 percent of such
units of government’’; and
(ii) by adding at the end the following:
‘‘(D) Designations of metropolitan planning organiza-
tions, whether made under this section or under any other
provision of law, shall remain in effect until redesignation
under this paragraph.’’;
(3) in subsection (d)—
(A) by inserting ‘‘(1)’’ before ‘‘To carry out
this section’’;
(B) by striking ‘‘Secretary of Commerce’’
and inserting ‘‘Bureau of the Census’’;
(C) by inserting ‘‘in existence as of the date
of enactment of the Intermodal Surface Trans-
portation Efficiency Act of 1998’’ after ‘‘at least
the boundaries of the nonattainment area’’;
(D) by inserting ‘‘, in the manner described
in subsection (c)(5)’’ before the period at the end;
and
(E) by adding at the end the following:
‘‘(2) In the case of an urbanized area classified as a
nonattainment area for ozone or carbon monoxide under
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the Clean Air Act (42 U.S.C. 7401 et seq.) after the date
of enactment of the Intermodal Surface Transportation Ef-
ficiency Act of 1998—
‘‘(A) the boundaries of the metropolitan plan-
ning area shall be established by agreement between
the appropriate units of general purpose local govern-
ment (including the central city) and the chief execu-
tive officer of the State; and
‘‘(B) the area shall include at least the urbanized
area and the contiguous area expected to become ur-
banized within the 20-year forecast period, and may
include the Metropolitan Statistical Area or Consoli-
dated Metropolitan Statistical Area, as determined by
the Bureau of the Census, and any area identified as
a nonattainment area for ozone or carbon monoxide
under the Clean Air Act (42 U.S.C. 7401 et seq.).’’;
(4) in subsection (e)—
(A) in paragraph (2)—
(i) by inserting ‘‘or compact’’ after
‘‘agreement’’ the first place that term ap-
pears’’; and
(ii) by striking ‘‘making the agreement
effective’’ and inserting ‘‘making the agree-
ments and compacts effective’’; and
(B) by adding at the end the following:
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‘‘(4) To the maximum extent practicable, each metro-
politan planning organization shall coordinate with gov-
ernmental agencies and nonprofit organizations operating
within an existing metropolitan planning area that receive
assistance from governmental sources (other than the De-
partment of Transportation) to provide nonemergency
transportation services. Such governmental agencies and
nonprofit organizations shall participate and coordinate
with recipients of assistance under this chapter in the de-
sign and delivery of transportation services. The purpose
of such coordination is to maximize the efficient use of re-
sources and to integrate all such services to ensure acces-
sibility and mobility.’’; and
(5) in subsection (f)—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘United States and regional functions’’ and
inserting ‘‘national, regional, and metro-
politan transportation functions’’;
(ii) in subparagraph (B), by striking
clause (iii) and inserting the following:
‘‘(iii) recommends any additional financing
strategies for needed projects and programs;’’;
and
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(iii) by striking subparagraph (C) and
inserting the following:
‘‘(C) 
identify 
transportation 
strategies
necessary—
‘‘(i) to ensure preservation, including re-
quirements for management, operation, mod-
ernization, and rehabilitation, of the existing
and future transportation system; and
‘‘(ii) to use existing transportation facilities
most efficiently to relieve congestion, to effi-
ciently serve the mobility needs of people and
goods, and to enhance access within the metro-
politan planning area; and’’;
(B) in paragraph (2), by striking ‘‘as they
are related to a 20-year forecast period’’ and in-
serting ‘‘and any State or local goals developed
within the cooperative metropolitan planning
process as they relate to a 20-year forecast period
and to other forecast periods as determined by
the participants in the planning process. In de-
veloping long-range plans, the metropolitan
planning organization shall take into account
the impact of all transportation projects and de-
velopment plans that will affect the transpor-
tation system in the metropolitan area, without
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regard to whether such projects are financed with
Federal funds’’;
(C) in paragraph (4), by inserting ‘‘freight
shippers,’’ after ‘‘employees,’’; and
(D) in paragraph (5)(A), by inserting
‘‘published or otherwise’’ before ‘‘made readily
available’’.
(b) METROPOLITAN TRANSPORTATION IMPROVEMENT
PROGRAM.—Section 5304 of title 49, United States Code,
is amended—
(1) in subsection (a), in the second sentence, by
striking ‘‘the organization’’ and inserting ‘‘the metro-
politan planning organization, in cooperation with
the chief executive officer of the State and any affected
mass transportation operator,’’;
(2) in subsection (b)(2), by striking subpara-
graph (C) and inserting the following:
‘‘(C) identifies innovative financing tech-
niques to finance projects, programs, and strate-
gies.’’; and
(3) in subsection (c)—
(A) in paragraph (1), by inserting ‘‘and the
designated recipient under this chapter’’ after
‘‘metropolitan planning organization’’; and
(B) by adding at the end the following:
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‘‘(3) Notwithstanding any other provision of law, ac-
tion by the Secretary shall not be required to advance a
project included in the approved transportation improve-
ment program in place of another project of higher priority
in the program, except where the project is relevant to con-
formity with the Clean Air Act (42 U.S.C. 7401 et seq.).
‘‘(4) A transportation improvement program and the
annual selection of projects involving Government partici-
pation shall be published or otherwise made readily avail-
able for public review, identifying federally funded projects,
and the estimated costs and locations of those projects.
‘‘(5) Regionally significant projects proposed for fund-
ing under chapter 2 of title 23 shall be identified individ-
ually in the transportation improvement program. All other
projects funded under chapter 2 of title 23 shall be grouped
in 1 line item or identified individually in the transpor-
tation improvement program.’’.
(c) TRANSPORTATION MANAGEMENT AREAS.—Section
5305 of title 49, United States Code, is amended—
(1) in subsection (a), by striking paragraph (2)
and inserting the following:
‘‘(2) any other area, if requested by the chief ex-
ecutive officer and the metropolitan planning organi-
zation designated for the area.’’;
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(2) in subsection (b), by inserting ‘‘affected’’ be-
fore ‘‘mass transportation operators’’;
(3) in subsection (c), by striking ‘‘The Secretary’’
and all that follows through the final period;
(4) in subsection (d)(1)(A)—
(A) by inserting ‘‘and any affected mass
transportation operator’’ after ‘‘the State’’; and
(B) by striking ‘‘or under the Bridge and
Interstate Maintenance programs’’;
(5) in subsection (d)(1)(B), by striking ‘‘or
under the Bridge and Interstate Maintenance pro-
grams’’; and
(6) in subsection (e), by striking paragraph (2)
and inserting the following:
‘‘(2)(A) If a metropolitan planning process is not cer-
tified or is certified conditionally, the Secretary may with-
hold not more than 20 percent of the apportioned funds at-
tributable to the transportation management area under
this chapter and title 23, or may establish such other condi-
tions as the Secretary determines to be appropriate.
‘‘(B) Any apportionments withheld under subpara-
graph (A) shall be restored to the metropolitan area at such
time as the metropolitan planning organization is certified
by the Secretary.’’.
(d) STATEWIDE PLANNING.—
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(1) IN GENERAL.—Chapter 53 of title 49, United
States Code, is amended by inserting after section
5305 the following:
‘‘§ 5305a. Statewide planning
‘‘(a) DEVELOPMENT REQUIREMENTS.—
‘‘(1) IN GENERAL.—To carry out sections 5303
through 5305 of this chapter and section 134 of title
23, each State shall develop transportation plans and
programs for all areas of the State, which shall pro-
vide for the development and integrated management
and operation of transportation systems (including
pedestrian walkways and bicycle transportation fa-
cilities) that will function as an intermodal State
transportation system and an integral part of the
intermodal transportation system of the United
States.
‘‘(2) SPECIFIC
REQUIREMENTS.—The develop-
ment of the plans and programs under paragraph (1)
shall—
‘‘(A) provide for consideration of all modes
of transportation; and
‘‘(B) be continuing, cooperative, and com-
prehensive to the degree appropriate, based on
the complexity of the transportation problems to
be addressed.
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‘‘(b) SCOPE OF PLANNING PROCESS.—
‘‘(1) IN GENERAL.—Each State shall carry out a
transportation planning process under this section,
which shall provide for consideration of—
‘‘(A) supporting the economic vitality of the
metropolitan area, especially by enabling global
competitiveness, productivity, and efficiency;
‘‘(B) increasing the safety and security of
the transportation system for motorized and non-
motorized users;
‘‘(C) increasing the accessibility and mobil-
ity options available to people and for freight;
‘‘(D) protecting and enhancing the environ-
ment, promoting energy conservation and im-
proved quality of life, and coordinating land-use
and transportation plans and programs;
‘‘(E) 
enhancing 
the 
integration 
and
connectivity of the transportation system, across
and between modes, for people and freight;
‘‘(F) promoting efficient system manage-
ment and operation; and
‘‘(G) emphasizing the preservation of the ex-
isting transportation system.
‘‘(2) GOALS.—In cooperation with the metropoli-
tan planning organization and mass transportation
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operators, and with opportunity for public review
and comment, the State shall establish goals that re-
late to the factors described in paragraph (1), and
propose projects, programs, and strategies to achieve
those goals.
‘‘(c) COORDINATION WITH METROPOLITAN PLANNING;
STATE IMPLEMENTATION PLAN.—
‘‘(1) IN GENERAL.—In carrying out the plan-
ning under this section, a State shall—
‘‘(A) coordinate the planning with the
transportation planning activities carried out
under sections 5303 through 5305 of this chapter
and section 134 of title 23, for metropolitan
areas of the State;
‘‘(B) carry out the responsibilities of the
State for the development of the transportation
portion of the State air quality implementation
plan, to the extent required by the Clean Air Act
(42 U.S.C. 7401 et seq.); and
‘‘(C) to the maximum extent practicable, co-
ordinate with all other governmental agencies
and nonprofit organizations operating within
the State planning area that receive assistance
from governmental sources (other than the De-
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partment of Transportation) to provide non-
emergency transportation services.
‘‘(2) PARTICIPATION.—The governmental agen-
cies and nonprofit organizations described in para-
graph (1)(C) shall participate and coordinate with
recipients of assistance under this chapter in the de-
sign and delivery of transportation services.
‘‘(3) PURPOSE OF COORDINATION.—The purpose
of coordination under this subsection is to maximize
the efficient use of resources and to integrate all such
services to ensure accessibility and mobility.
‘‘(d) ADDITIONAL REQUIREMENTS.—In carrying out
planning under this section, each State shall, at a mini-
mum, consider—
‘‘(1) with respect to nonmetropolitan areas, the
concerns of local elected officials representing units of
general purpose local government;
‘‘(2) the concerns of Indian tribal governments
and Federal land management agencies that have ju-
risdiction over land within the boundaries of the
State; and
‘‘(3) coordination of transportation plans, pro-
grams, and planning activities with related planning
activities being carried out outside of metropolitan
planning areas.
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‘‘(e) LONG-RANGE TRANSPORTATION PLAN.—
‘‘(1) IN GENERAL.—Each State shall develop a
long-range transportation plan, with a minimum 20-
year forecast period, for all areas of the State, that
provides for the development and implementation of
the intermodal transportation system of the State.
‘‘(2) COOPERATION.—With respect to each metro-
politan area in the State, the long-range transpor-
tation plan referred to in paragraph (1) shall be de-
veloped in cooperation with the metropolitan plan-
ning organization designated for the metropolitan
area under section 5303 and section 134 of title 23.
With respect to each nonmetropolitan area, the long-
range transportation plan shall be developed in con-
sultation with local elected officials representing units
of general purpose local government. With respect to
each area of the State under the jurisdiction of an In-
dian tribal government, the long-range transportation
plan shall be developed in consultation with the tribal
government and the Secretary of the Interior.
‘‘(3) OPPORTUNITY FOR COMMENT.—In develop-
ing the long-range transportation plan under this
subsection, the State shall provide citizens, affected
public agencies, representatives of transportation au-
thority employees, other affected employee representa-
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tives, freight shippers, private providers of transpor-
tation, and other interested parties with a reasonable
opportunity to comment on the proposed plan.
‘‘(4) TRANSPORTATION STRATEGIES.—The long-
range transportation plan developed under this sub-
section shall identify transportation strategies nec-
essary to efficiently serve the mobility needs of indi-
viduals.
‘‘(f) 
STATE
TRANSPORTATION
IMPROVEMENT
PROGRAM.—
‘‘(1) IN GENERAL.—The State shall develop a
transportation improvement program for all areas of
the State.
‘‘(2) COOPERATION.—With respect to each metro-
politan area in the State, the transportation improve-
ment program under this subsection shall be developed
in cooperation with the metropolitan planning orga-
nization designated for the metropolitan area under
section 5303 and section 134 of title 23. With respect
to each nonmetropolitan area, the program shall be
developed in consultation with local elected officials
representing units of general purpose local govern-
ment. With respect to each area of the State under the
jurisdiction of an Indian tribal government, the pro-
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gram shall be developed in consultation with the trib-
al government and the Secretary of the Interior.
‘‘(3) OPPORTUNITY FOR COMMENT.—In develop-
ing the transportation improvement program under
this subsection, the State shall provide citizens, af-
fected public agencies, representatives of transpor-
tation authority employees, other affected employee
representatives, freight shippers, private providers of
transportation, and other interested parties with a
reasonable opportunity to comment on the proposed
program.
‘‘(4) REQUIRED
INFORMATION.—A transpor-
tation improvement program developed for a State
under this subsection shall include federally supported
surface transportation expenditures within the bound-
aries of the State. Regionally significant projects pro-
posed for funding under chapter 2 of title 23 shall be
identified individually. All other projects funded
under chapter 2 of title 23 shall be grouped in 1 line
item or identified individually in the transportation
improvement program.
‘‘(5) SPECIFIC
REQUIREMENTS.—Each project
shall—
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‘‘(A) be consistent with the long-range
transportation plan developed under this section
for the State;
‘‘(B) be identical to the project described in
an approved metropolitan transportation im-
provement program; and
‘‘(C) be in conformance with the applicable
State air quality implementation plan developed
under the Clean Air Act (42 U.S.C. 7401 et seq.),
if the project is carried out in an area des-
ignated as nonattainment for ozone or carbon
monoxide under that Act.
‘‘(6) PROJECTS.—The transportation improve-
ment program developed under this subsection shall
include a project, or an identified phase of a project,
only if full funding can reasonably be anticipated to
be available for the project within the time period
contemplated for completion of the project.
‘‘(7) PRIORITIES.—The transportation improve-
ment program developed under this subsection shall
reflect the priorities for programming and expendi-
tures of funds, including transportation enhance-
ments, required by this chapter.
‘‘(8) SMALL
AREAS.—Projects carried out in
areas with populations of less than 50,000—
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‘‘(A) excluding projects carried out on the
National Highway System, shall be selected from
the approved statewide transportation improve-
ment program by the State in cooperation with
the affected local officials; and
‘‘(B) on the National Highway System,
shall be selected from the approved statewide
transportation improvement program by the
State, in consultation with the affected local offi-
cials.
‘‘(9) REVIEW.—A transportation improvement
program developed under this subsection shall be re-
viewed and, on a finding that the planning process
through which the program was developed is consist-
ent with this section and section 5303, approved not
less frequently than biennially by the Secretary. Not-
withstanding any other provision of law, action by
the Secretary shall not be required to advance a
project included in the approved statewide transpor-
tation improvement program in place of another
project of higher priority in the program, except
where the project is relevant to conformity with the
Clean Air Act (42 U.S.C. 7401 et seq.).
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‘‘(g) AVAILABLE FUNDS.—Amounts set aside under
section 5313(b) of this chapter and section 505 of title 23
shall be available to carry out this section.’’.
(2) CONFORMING AMENDMENT.—The analysis for
chapter 53 of title 49, United States Code, is amended
by inserting after the item relating to section 5305 the
following:
‘‘5305a.
Statewide planning.’’.
SEC. 5005. METROPOLITAN PLANNING ORGANIZATIONS.
Section 5303(c)(2) of title 49, United States Code, is
amended by striking ‘‘and appropriate State officials’’ and
inserting ‘‘appropriate State officials, and a representative
of the users of public transit’’.
SEC. 5006. FARE BOX REVENUES.
(a) BLOCK GRANTS.—Section 5307(e) of title 49,
United States Code, is amended—
(1) in the first sentence, by striking ‘‘A grant of’’
and inserting the following:
‘‘(1) IN GENERAL.—A grant of’’;
(2) in the fourth sentence, by striking ‘‘or reve-
nues from’’ and all that follows through ‘‘1985)’’;
(3) in the last sentence, by inserting ‘‘proceeds
from a local issuance of debt,’’ after ‘‘cash fund or re-
serve,’’; and
(4) by adding at the end the following:
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‘‘(2) MAINTENANCE
OF
EFFORT.—The credit
given for the use of proceeds from a local issuance of
debt in meeting the non-Federal share under para-
graph (1) shall not reduce or replace State monies re-
quired to match Federal funds for any program pur-
suant to this chapter. In receiving a credit for non-
Federal capital expenditures under this section, a
State shall enter into such agreements as the Sec-
retary may require to ensure that the State will
maintain its non-Federal transportation capital ex-
penditures at or above the average level of such ex-
penditures for the preceding 3 fiscal years.’’.
(b) DISCRETIONARY GRANTS
AND LOANS.—Section
5309(h) of title 49, United States Code, is amended in the
fourth sentence, by inserting ‘‘proceeds from a local issuance
of debt,’’ after ‘‘cash fund or reserve.’’.
SEC. 5007. CLEAN FUELS FORMULA GRANT PROGRAM.
(a) IN GENERAL.—Section 5308 of title 49, United
States Code, is amended to read as follows:
‘‘§ 5308. Clean fuels formula grant program
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘designated recipient’ has the same
meaning as in section 5307(a);
‘‘(2) the term ‘eligible project’—
‘‘(A) means a project for the—
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‘‘(i) purchase or lease of clean fuel ve-
hicles or hybrid transit vehicles, including
clean fuel vehicles that employ a lightweight
composite primary structure;
‘‘(ii) construction or leasing of clean
fuel vehicle fueling or electrical recharging
facilities and related equipment;
‘‘(iii) improvement of existing transit
facilities to accommodate clean fuel vehicles;
or
‘‘(iv) incremental costs of biodiesel fuel;
and
‘‘(B) in the discretion of the Secretary, may
include projects relating to clean fuel, biodiesel,
hybrid electric, or zero emissions technology vehi-
cles that exhibit equivalent or superior emissions
reductions to existing clean fuel or hybrid elec-
tric technologies; and
‘‘(3) the term ‘Secretary’ means the Secretary of
Transportation.
‘‘(b) AUTHORITY.—The Secretary shall make grants in
accordance with this section to designated recipients to fi-
nance eligible projects.
‘‘(c) APPLICATION.—Not later than January 1 of each
year, any designated recipient seeking to apply for a grant
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under this section for an eligible project shall submit an
application to the Secretary, in such form and in accord-
ance with such requirements as the Secretary shall establish
by regulation.
‘‘(d) APPORTIONMENT OF FUNDS.—
‘‘(1) FORMULA.—Not later than February 1 of
each year, the Secretary shall apportion amounts
made available under this section to designated re-
cipients submitting applications under subsection (c)
in accordance with the following:
‘‘(A) Two-thirds of the amount made avail-
able under this section shall be apportioned to
designated recipients with eligible projects in
urban areas with a population of not less than
1,000,000 as follows:
‘‘(i) 50 percent shall be apportioned,
such that each such designated recipient re-
ceives a grant in an amount equal to the
ratio between—
‘‘(I) the number of vehicles in the
bus fleet of the eligible project of the
designated recipient, weighted by sever-
ity of nonattainment for the area in
which the eligible project is located, as
provided in paragraph (2); and
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‘‘(II) the total number of vehicles
in the bus fleets of all eligible projects
in areas with a population of not less
than 1,000,000 funded under this sec-
tion, weighted by severity of nonattain-
ment for all areas in which those eligi-
ble projects are located, as provided in
paragraph (2).
‘‘(ii) 50 percent of the amount made
available under this section shall be appor-
tioned, such that each such designated recip-
ient receives a grant in an amount equal to
the ratio between—
‘‘(I) the number of bus passenger
miles (as that term is defined in sec-
tion 5336(c)) of the eligible project of
the designated recipient, weighted by
severity of nonattainment of the area
in which the eligible project is located,
as provided in paragraph (2); and
‘‘(II) the total number of bus pas-
senger miles of all eligible projects in
areas with a population of not less
than 1,000,000 funded under this sec-
tion, weighted by severity of nonattain-
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ment of all areas in which those eligi-
ble projects are located, as provided in
paragraph (2).
‘‘(B) One-third of the amount made avail-
able under this section shall be apportioned to
designated recipients with eligible projects in
urban areas with a population of less than
1,000,000 as follows:
‘‘(i) 50 percent shall be apportioned,
such that each such designated recipient re-
ceives a grant in an amount equal to the
ratio between—
‘‘(I) the number of vehicles in the
bus fleet of the eligible project of the
designated recipient, weighted by sever-
ity of nonattainment for the area in
which the eligible project is located, as
provided in paragraph (2); and
‘‘(II) the total number of vehicles
in the bus fleets of all eligible projects
in areas with a population of less than
1,000,000 funded under this section,
weighted by severity of nonattainment
for all areas in which those eligible
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projects are located, as provided in
paragraph (2).
‘‘(ii) 50 percent of the amount made
available under this section shall be appor-
tioned, such that each such designated recip-
ient receives a grant in an amount equal to
the ratio between—
‘‘(I) the number of bus passenger
miles (as that term is defined in sec-
tion 5336(c)) of the eligible project of
the designated recipient, weighted by
severity of nonattainment of the area
in which the eligible project is located,
as provided in paragraph (2); and
‘‘(II) the total number of bus pas-
senger miles of all eligible projects in
areas with a population of less than
1,000,000 funded under this section,
weighted by severity of nonattainment
of all areas in which those eligible
projects are located, as provided in
paragraph (2).
‘‘(2) WEIGHTING OF SEVERITY OF NONATTAIN-
MENT.—
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‘‘(A) IN GENERAL.—For purposes of para-
graph (1), subject to subparagraph (B) of this
paragraph, the number of clean fuel vehicles in
the fleet, or the number of passenger miles, shall
be multiplied by a factor of—
‘‘(i) 1.0 if, at the time of the appor-
tionment, the area is a maintenance area
(as that term is defined in section 101 of
title 23) for ozone or carbon monoxide;
‘‘(ii) 1.1 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) a marginal ozone nonattain-
ment area under subpart 2 of part D
of title I of the Clean Air Act (42
U.S.C. 7511 et seq.); or
‘‘(II) a marginal carbon monoxide
nonattainment area under subpart 3 of
part D of title I of that Act (42 U.S.C.
7512 et seq.);
‘‘(iii) 1.2 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) a moderate ozone nonattain-
ment area under subpart 2 of part D
of title I of the Clean Air Act (42
U.S.C. 7511 et seq.); or
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‘‘(II) a moderate carbon monoxide
nonattainment area under subpart 3 of
part D of title I of that Act (42 U.S.C.
7512 et seq.);
‘‘(iv) 1.3 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) a serious ozone nonattain-
ment area under subpart 2 of part D
of title I of the Clean Air Act (42
U.S.C. 7511 et seq.); or
‘‘(II) a serious carbon monoxide
nonattainment area under subpart 3 of
part D of title I of that Act (42 U.S.C.
7512 et seq.);
‘‘(v) 1.4 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) a severe ozone nonattainment
area under subpart 2 of part D of title
I of the Clean Air Act (42 U.S.C. 7511
et seq.); or
‘‘(II) a severe carbon monoxide
nonattainment area under subpart 3 of
part D of title I of that Act (42 U.S.C.
7512 et seq.); or
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‘‘(vi) 1.5 if, at the time of the appor-
tionment, the area is classified as—
‘‘(I) an extreme ozone nonattain-
ment area under subpart 2 of part D
of title I of the Clean Air Act (42
U.S.C. 7511 et seq.); or
‘‘(II) an extreme carbon monoxide
nonattainment area under subpart 3 of
part D of title I of that Act (42 U.S.C.
7512 et seq.).
‘‘(B) ADDITIONAL
ADJUSTMENT
FOR
CAR-
BON MONOXIDE AREAS.—If, in addition to being
classified as a nonattainment or maintenance
area (as that term is defined in section 101 of
title 23) for ozone under subpart 2 of part D of
title I of the Clean Air Act (42 U.S.C. 7511 et
seq.), the area was also classified under subpart
3 of part D of title I of that Act (42 U.S.C. 7512
et seq.) as a nonattainment area for carbon mon-
oxide, the weighted nonattainment or mainte-
nance area fleet and passenger miles for the eli-
gible project, as calculated under subparagraph
(A), shall be further multiplied by a factor of
1.2.
‘‘(3) MAXIMUM GRANT AMOUNT.—
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‘‘(A) IN GENERAL.—The amount of a grant
made to a designated recipient under this section
shall not exceed the lesser of—
‘‘(i) for an eligible project in an
area—
‘‘(I) with a population of less
than 1,000,000, $15,000,000; and
‘‘(II) with a population of not less
than 1,000,000, $25,000,000; or
‘‘(ii) 80 percent of the total cost of the
eligible project.
‘‘(B) REAPPORTIONMENT.—Any amounts
that would otherwise be apportioned to a des-
ignated recipient under this subsection that ex-
ceed the amount described in subparagraph (A)
shall be reapportioned among other designated
recipients in accordance with paragraph (1).
‘‘(e) AUTHORIZATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), in
each fiscal year, $200,000,000 shall be made available
or appropriated under subsections (a) and (b) of sec-
tion 5338 to carry out this section.
‘‘(2) 
ADDITIONAL
REQUIREMENT.—Notwith-
standing any other provision of this section, not less
than 5 percent of the amount apportioned under this
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section in each fiscal year shall be apportioned to
fund any eligible projects, for which an application is
received from a designated recipient in accordance
with subsection (a), for—
‘‘(A) the purchase or construction of hybrid
electric or battery-powered buses; or
‘‘(B) facilities specifically designed to serv-
ice those buses.
‘‘(f) AVAILABILITY OF FUNDS.—Any amount made
available or appropriated under this section—
‘‘(1) shall remain available for 1 year after the
fiscal year for which the amount is made available or
appropriated; and
‘‘(2) that remains unobligated at the end of the
period described in paragraph (1), shall be added to
the amount made available in the following fiscal
year.’’.
(b) DEFINITION OF CLEAN FUEL VEHICLE.—Section
5302(a) of title 49, United States Code, is amended—
(1) in each of paragraphs (2) through (12), by
striking the period at the end and inserting a semi-
colon;
(2) in paragraph (13), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(14) ‘clean fuel vehicle’ means a vehicle powered
by compressed natural gas, liquefied natural gas, bio-
diesel fuels, batteries, alcohol-based fuels, or hybrid
electric, fuel cell, or other zero emissions technology.’’.
(c) CLERICAL AMENDMENT.—The analysis for chapter
53 of title 49, United States Code, is amended by striking
the item relating to section 5308 and inserting the follow-
ing:
‘‘5308. Clean fuels formula grant program.’’.
SEC. 5008. CAPITAL INVESTMENT GRANTS AND LOANS.
(a) IN GENERAL.—Section 5309 of title 49, United
States Code, is amended in the section heading, by striking
‘‘Discretionary’’ and inserting ‘‘Capital invest-
ment’’.
(b) ALLOCATING AMOUNTS.—Section 5309(m)(1) of
title 49, United States Code, is amended by striking ‘‘Of
the amounts available for grants and loans under this sec-
tion for each of the fiscal years ending September 30, 1993–
1997’’ and inserting ‘‘After apportioning amounts for the
purposes of section 5308, of the amounts available for
grants and loans under this section for each of fiscal years
1993 through 2003’’.
(c) CONFORMING
AMENDMENT.—The analysis for
chapter 53 of title 49, United States Code, is amended in
the item relating to section 5309, by striking ‘‘Discre-
tionary’’ and inserting ‘‘Capital investment’’.
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SEC. 5009. TRANSIT SUPPORTIVE LAND USE.
Section 5309(e)(3)(B) of title 49, United States Code,
is amended by inserting ‘‘, and recognize reductions in local
infrastructure costs achieved through compact land use de-
velopment’’ before the semicolon.
SEC. 5010. NEW STARTS.
Section 5309(m) of title 49, United States Code, is
amended by adding at the end the following:
‘‘(5) Not more than 8 percent of the amount made
available under paragraph (1)(B) in any fiscal year shall
be available for activities other than final design and con-
struction.’’.
SEC. 5011. JOINT PARTNERSHIP FOR DEPLOYMENT OF IN-
NOVATION.
Section 5312 of title 49, United States Code, is amend-
ed by adding at the end the following:
‘‘(d) JOINT PARTNERSHIP PROGRAM
FOR DEPLOY-
MENT OF INNOVATION.—
‘‘(1) DEFINITION OF CONSORTIUM.—In this sub-
section, the term ‘consortium’—
‘‘(A) means—
‘‘(i) 1 or more public or private orga-
nizations located in the United States, that
provides mass transportation service to the
public; and
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‘‘(ii) 1 or more businesses, including
small- and medium-sized businesses, incor-
porated in a State, offering goods or services
or willing to offer goods and services to
mass transportation operators; and
‘‘(B) may include, as additional members,
public or private research organizations located
in the United States, or State or local govern-
mental authorities.
‘‘(2) GENERAL AUTHORITY.—The Secretary may,
under terms and conditions that the Secretary pre-
scribes, enter into grants, contracts, cooperative agree-
ments, and other agreements with consortia selected
in accordance with paragraph (4), to promote the
early deployment of innovation in mass transpor-
tation technology, services, management, or oper-
ational practices. This paragraph shall be carried out
in consultation with the transit industry by competi-
tively selected public/private partnerships that will
share costs, risks, and rewards of early deployment of
innovation with broad applicability.
‘‘(3) CONSORTIUM
CONTRIBUTION.—A consor-
tium assisted under this subsection shall provide not
less than 50 percent of the costs of any joint partner-
ship project. Any business, organization, person, or
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governmental body may contribute funds to a joint
partnership project.
‘‘(4) NOTICE
REQUIREMENT.—The Secretary
shall periodically give public notice of the technical
areas for which joint partnerships are solicited, re-
quired qualifications of consortia desiring to partici-
pate, the method of selection and evaluation criteria
to be used in selecting participating consortia and
projects, and the process by which innovation projects
described in paragraph (1) will be awarded.
‘‘(5) USE OF REVENUES.—The Secretary shall,
to the maximum extent practicable, accept a portion
of the revenues resulting from sales of an innovation
project funded under this section, to be credited to the
Mass Transit Account of the Highway Trust Fund
and used for joint partnership projects in accordance
with this subsection.’’.
SEC. 5012. WORKPLACE SAFETY.
Section 5315(a) of title 49, United States Code, is
amended—
(1) in paragraph (13), by striking ‘‘and’’ at the
end;
(2) in paragraph (14), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
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‘‘(15) workplace safety.’’.
SEC. 5013. UNIVERSITY TRANSPORTATION CENTERS.
(a) IN GENERAL.—Subchapter IV of chapter 52 of title
49, United States Code (as added by section 2003(a) of this
Act), is repealed effective 1 day after the date of enactment
of this Act.
(b) REPEAL.—
(1) IN GENERAL.—Section 2003(b) of this Act,
and the amendments made by that section, are re-
pealed effective 1 day after the date of enactment of
this Act.
(2) APPLICABILITY.—Effective 1 day after the
date of enactment of this Act, sections 5316 and 5317
of title 49, United States Code, and the items relating
to sections 5316 and 5317 in the analysis for chapter
53 of title 49, United States Code, shall be applied
and administered as if section 2003(b) of this Act had
not been enacted.
(c) ESTABLISHMENT OF CENTER.—Section 5317(b) of
title 49, United States Code, is amended by adding the fol-
lowing new paragraph:
‘‘(6) The Secretary shall make grants to the Uni-
versity of Alabama Transportation Research Center to
establish a university Transportation Center.’’.
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SEC. 5014. JOB ACCESS AND REVERSE COMMUTE GRANTS.
(a) FINDINGS.—Congress finds that—
(1) two-thirds of all new jobs are in the suburbs,
whereas three-quarters of welfare recipients live in
rural areas or central cities;
(2) even in metropolitan areas with excellent
public transit systems, less than half of the jobs are
accessible by transit;
(3) in 1991, the median price of a new car was
equivalent to 25 weeks of salary for the average work-
er, and considerably more for the low-income worker;
(4) not fewer than 9,000,000 households and
10,000,000 Americans of driving age, most of whom
are low-income workers, do not own cars;
(5) 94 percent of welfare recipients do not own
cars;
(6) nearly 40 percent of workers with annual in-
comes below $10,000 do not commute by car;
(7) many of the 2,000,000 Americans who will
have their Temporary Assistance to Needy Families
grants (under the State program funded under part
A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)) terminated by the year 2002 will be un-
able to get to jobs they could otherwise hold;
(8) increasing the transit options for low-income
workers, especially those who are receiving or who
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have recently received welfare benefits, will increase
the likelihood of those workers getting and keeping
jobs; and
(9) many residents of cities and rural areas
would like to take advantage of mass transit to gain
access to suburban employment opportunities.
(b) GRANT AUTHORITY.—
(1) IN GENERAL.—Chapter 53 of title 49, United
States Code, is amended by inserting after section
5320 the following:
‘‘§ 5320a. Access to jobs
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE
LOW-INCOME
INDIVIDUAL.—The
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in
section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by that section) for a family of the size
involved.
‘‘(2) ELIGIBLE PROJECT AND RELATED TERMS.—
‘‘(A) IN
GENERAL.—The term ‘eligible
project’ means an access to jobs project or a re-
verse commute project.
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related to the development of transportation serv-
ices designed to transport residents of urban
areas, urbanized areas, and areas other than ur-
banized areas to suburban employment opportu-
nities, including any project to—
‘‘(i) subsidize the costs associated with
adding reverse commute bus, train, or van
routes, or service from urban areas, urban-
ized areas, and areas other than urbanized
areas, to suburban workplaces;
‘‘(ii) subsidize the purchase or lease by
a private employer, nonprofit organization,
or public agency of a van or bus dedicated
to shuttling employees from their residences
to a suburban workplace;
‘‘(iii) otherwise facilitate the provision
of mass transportation services to suburban
employment opportunities to residents of
urban areas, urbanized areas, and areas
other than urbanized areas.
‘‘(3) EXISTING TRANSPORTATION SERVICE PRO-
VIDERS.—The term ‘existing transportation service
providers’ means mass transportation operators and
governmental agencies and nonprofit organizations
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that receive assistance from Federal, State, or local
sources for nonemergency transportation services.
‘‘(4) SECRETARY.—The term ‘Secretary’ means
the Secretary of Transportation.
‘‘(5) QUALIFIED
ENTITY.—The term ‘qualified
entity’ means—
‘‘(A) with respect to any proposed eligible
project in an urbanized area with a population
of not less than 200,000, the entity or entities se-
lected by the appropriate metropolitan planning
organization, in coordination with affected tran-
sit grant recipients (as provided in subsection
(g)(2)), from among local governmental authori-
ties and nonprofit organizations; and
‘‘(B) with respect to any proposed eligible
project in an urbanized area with a population
of less than 200,000, or an area other than an
urbanized area, the entity or entities selected by
the chief executive officer of the State in which
the area is located, in coordination with affected
transit grant recipients (as provided in sub-
section (g)(2)), from among local governmental
authorities and nonprofit organizations.
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare
recipient’ means an individual who receives or re-
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ceived aid or assistance under a State program fund-
ed under part A of title IV of the Social Security Act
(whether in effect before or after the effective date of
the amendments made by title I of the Personal Re-
sponsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193; 110 Stat. 2110))
at any time during the 3-year period before the date
on which the applicant applies for a grant under this
section.
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary may make ac-
cess to jobs grants and reverse commute grants under
this section to assist qualified entities in financing el-
igible projects.
‘‘(2) COORDINATION.—The Secretary shall co-
ordinate activities under this section with related ac-
tivities under programs of other Federal departments
and agencies.
‘‘(c) APPLICATIONS.—Each qualified entity seeking to
receive a grant under this section for an eligible project
shall submit to the Secretary an application in such form
and in accordance with such requirements as the Secretary
shall establish by regulation.
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‘‘(d) PROHIBITION.—Grants awarded under this sec-
tion may not be used for planning or coordination activi-
ties.
‘‘(e) FACTORS
FOR CONSIDERATION.—In awarding
grants under this section to applicants under subsection (c),
the Secretary shall consider—
‘‘(1) the percentage of the population in the area
to be served by the applicant that are welfare recipi-
ents;
‘‘(2) in the case of an applicant seeking assist-
ance to finance an access to jobs project, the need for
additional services in the area to be served by the ap-
plicant to transport welfare recipients and eligible
low-income individuals to and from specified jobs,
training, and other employment support services, and
the extent to which the proposed services will address
those needs;
‘‘(3) the extent to which the applicant dem-
onstrates coordination with, and the financial com-
mitment of, existing transportation service providers;
‘‘(4) the extent to which the applicant dem-
onstrates maximum utilization of existing transpor-
tation service providers and expands transit networks
or hours of service, or both;
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‘‘(5) the extent to which the applicant dem-
onstrates an innovative approach that is responsive to
identified service needs;
‘‘(6) the extent to which the applicant—
‘‘(A) in the case of an applicant seeking as-
sistance to finance an access to jobs project, pre-
sents a regional transportation plan for address-
ing the transportation needs of welfare recipients
and eligible low-income individuals; and
‘‘(B) identifies long-term financing strate-
gies to support the services under this section;
‘‘(7) the extent to which the applicant dem-
onstrates that the community to be served has been
consulted in the planning process; and
‘‘(8) in the case of an applicant seeking assist-
ance to finance a reverse commute project, the need
for additional services identified in a regional trans-
portation plan to transport individuals to suburban
employment opportunities, and the extent to which
the proposed services will address those needs.
‘‘(f) FEDERAL SHARE OF COSTS.—
‘‘(1) MAXIMUM
AMOUNT.—The amount of a
grant under this section may not exceed 50 percent of
the total project cost.
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‘‘(2) NONGOVERNMENTAL SHARE.—The portion
of the total cost of an eligible project that is not fund-
ed under this section—
‘‘(A) shall be provided in cash from sources
other than revenues from providing mass trans-
portation; and
‘‘(B) may be derived from amounts made
available to a department or agency of the Fed-
eral Government (other than the Department of
Transportation) that are eligible to be expended
for transportation.
‘‘(g) PLANNING REQUIREMENTS.—
‘‘(1) IN GENERAL.—The requirements of sections
5303 through 5306 apply to any grant made under
this section.
‘‘(2) COORDINATION.—Each application for a
grant under this section shall reflect coordination
with and the approval of affected transit grant recipi-
ents. The eligible access to jobs projects financed must
be part of a coordinated public transit-human serv-
ices transportation planning process.
‘‘(h) GRANT REQUIREMENTS.—A grant under this sec-
tion shall be subject to—
‘‘(1) all of the terms and conditions to which a
grant made under section 5307 is subject; and
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‘‘(2) such other terms and conditions as deter-
mined by the Secretary.
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER
GENERAL.—Beginning 6
months after the date of enactment of this section, and
every 6 months thereafter, the Comptroller General of
the United States shall—
‘‘(A) conduct a study to evaluate the grant
program authorized under this section; and
‘‘(B) submit to the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a re-
port describing the results of each study under
subparagraph (A).
‘‘(2) DEPARTMENT
OF
TRANSPORTATION.—Not
later than 2 years after the date of enactment of this
section, the Secretary shall—
‘‘(A) conduct a study to evaluate the access
to jobs grant program authorized under this sec-
tion; and
‘‘(B) submit to the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a re-
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port describing the results of the study under
subparagraph (A).
‘‘(j) FUNDING; ALLOCATION.—
‘‘(1) IN GENERAL.—There is authorized to be ap-
propriated to carry out this section, to remain avail-
able until expended, $250,000,000 for each of fiscal
years 1998 through 2003, of which—
‘‘(A) $150,000,000 in each fiscal year shall
be used for grants for access to jobs projects; and
‘‘(B) $100,000,000 in each fiscal year shall
be used for grants for reverse commute projects.
‘‘(2) ALLOCATION.—The amount made available
to carry out this section in each fiscal year shall be
allocated as follows:
‘‘(A) 60 percent shall be allocated for eligi-
ble projects in urbanized areas with populations
of not less than 200,000.
‘‘(B) 20 percent shall be allocated for eligi-
ble projects in urbanized areas with populations
of less than 200,000.
‘‘(C) 20 percent shall be allocated for eligi-
ble projects in areas other than urbanized
areas.’’.
(2) CONFORMING AMENDMENT.—The analysis for
chapter 53 of title 49, United States Code, is amended
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by inserting after the item relating to section 5320 the
following:
‘‘5320a.
Access to jobs.’’.
SEC. 5015. GRANT REQUIREMENTS.
Section 5323 of title 49, United States Code, is amend-
ed by adding at the end the following:
‘‘(m) GRANT REQUIREMENTS.—The grant require-
ments under sections 5307 and 5309 apply to any project
under this chapter that receives any assistance from an in-
frastructure bank or through other financing under subtitle
C of title I of the Intermodal Surface Transportation Effi-
ciency Act of 1998.’’.
SEC. 5016. HHS AND PUBLIC TRANSIT SERVICE.
Section 5323 of title 49, United States Code, is amend-
ed by adding at the end the following:
‘‘(n) PARTICIPATION OF GOVERNMENTAL AGENCIES IN
DESIGN AND DELIVERY OF TRANSPORTATION SERVICES.—
To the extent feasible, governmental agencies and nonprofit
organizations that receive assistance from Government
sources (other than the Department of Transportation) for
nonemergency transportation services—
‘‘(1) shall participate and coordinate with re-
cipients of assistance under this chapter in the design
and delivery of transportation services; and
‘‘(2) shall be included in the planning for those
services.’’.
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SEC. 5017. PROCEEDS FROM THE SALE OF TRANSIT ASSETS.
Section 5334(g) of title 49, United States Code, is
amended by adding at the end the following:
‘‘(4) Notwithstanding any other provision of law, if
a recipient of assistance under this chapter determines that
an asset (including real property) acquired with such as-
sistance is no longer needed for the purpose for which it
was acquired, the recipient may sell that asset with no fur-
ther obligation to the Government, if the proceeds of the sale
are used for the provision of mass transportation services
in accordance with this chapter.’’.
SEC. 5018. OPERATING ASSISTANCE FOR SMALL TRANSIT
AUTHORITIES IN LARGE URBANIZED AREAS.
Section 5336(d) of title 49, United States Code, is
amended by adding at the end the following:
‘‘(3) In distributing operating assistance under this
subsection to urbanized areas with a population of
1,000,000 or more under the most recent census, the Sec-
retary shall direct each such area to give priority consider-
ation to the impact of reductions on operating assistance
on smaller transit authorities operating within the area
and to consider the needs and resources of such transit au-
thorities.’’.
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SEC. 5019. APPORTIONMENT OF APPROPRIATIONS FOR
FIXED GUIDEWAY MODERNIZATION.
(a) DISTRIBUTION.—Section 5337(a) of title 49,
United States Code, is amended to read as follows:
‘‘(a) DISTRIBUTION.—The Secretary of Transportation
shall apportion amounts made available for fixed guideway
modernization under section 5309 for each of fiscal years
1998, 1999, 2000, 2001, 2002, and 2003 as follows:
‘‘(1) The first $497,700,000 shall be apportioned
in the following urbanized areas as follows:
‘‘(A) Baltimore, $8,372,000.
‘‘(B) Boston, $38,948,000.
‘‘(C) 
Chicago/Northwestern 
Indiana,
$78,169,000.
‘‘(D) Cleveland, $9,509,500.
‘‘(E) New Orleans, $1,730,588.
‘‘(F) New York, $176,034,461.
‘‘(G) Northeastern New Jersey, $50,604,653.
‘‘(H) Philadelphia/Southern New Jersey,
$58,924,764.
‘‘(I) Pittsburgh, $13,662,463.
‘‘(J) San Francisco, $33,989,571.
‘‘(K) 
Southwestern 
Connecticut,
$27,755,000.
‘‘(2) The next $70,000,000 shall be apportioned
as follows:
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‘‘(A) 50 percent in the urbanized areas list-
ed in paragraph (1), as provided in section
5336(b)(2)(A).
‘‘(B) 50 percent in other urbanized areas el-
igible for assistance under section 5336(b)(2)(A)
to which amounts were apportioned under this
section for fiscal year 1997, as provided in sec-
tion 5336(b)(2)(A) and subsection (e) of this sec-
tion.
‘‘(3) The next $5,700,000 shall be apportioned in
the following urbanized areas as follows:
‘‘(A) Pittsburgh, 61.76 percent.
‘‘(B) Cleveland, 10.73 percent.
‘‘(C) New Orleans, 5.79 percent.
‘‘(D) 21.72 percent in urbanized areas to
which paragraph (2)(B) applies, as provided in
section 5336(b)(2)(A) and subsection (e) of this
section.
‘‘(4) The next $186,600,000 shall be apportioned
in each urbanized area to which paragraph (1) ap-
plies and in each urbanized area to which paragraph
(2)(B) applies, as provided in section 5336(b)(2)(A)
and subsection (e) of this section.
‘‘(5) Remaining amounts shall be apportioned as
follows:
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‘‘(A) 50 percent in the urbanized areas list-
ed in paragraph (1) as provided in section
5336(b)(2)(A) and subsection (e) of this section.
‘‘(B) 50 percent to urbanized areas to which
paragraph (5)(B) applies, as provided in section
5336(b)(2)(A) and subsection (e) of this section.’’.
(b) ROUTE SEGMENTS TO BE INCLUDED IN APPOR-
TIONMENT FORMULAS.—Section 5337 of title 49, United
States Code, is amended by adding at the end the following:
‘‘(e) ROUTE SEGMENTS TO BE INCLUDED IN APPOR-
TIONMENT FORMULAS.—
‘‘(1) Amounts apportioned under paragraphs
(2)(B), (3), and (4) of subsection (a) shall have at-
tributable to each urbanized area only the number of
fixed guideway revenue miles of service and number
of fixed guideway route miles for segments of fixed
guideway systems used to determine apportionments
for fiscal year 1997.
‘‘(2) Amounts apportioned under paragraphs (5)
through (7) of subsection (a) shall have attributable to
each urbanized area only the number of fixed guide-
way revenue miles of service and number of fixed
guideway route-miles for segments of fixed guideway
systems placed in revenue service not less than 7
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years before the fiscal year in which amounts are
made available.’’.
SEC. 5020. URBANIZED AREA FORMULA STUDY.
(a) STUDY.—The Secretary of Transportation shall
conduct a study to determine whether the formula for ap-
portioning funds to urbanized areas under section 5336 of
title 49, United States Code accurately reflects the transit
needs of the urbanized areas and, if not, whether any
changes should be made either to the formula or through
some other mechanism to reflect the fact that some urban-
ized areas with a population between 50,000 and 200,000
have transit systems that carry more passengers per mile
or hour than the average of those transit systems in urban-
ized areas with a population over 200,000.
(b) REPORT.—Not later than December 31, 1999, the
Secretary of Transportation shall transmit to the Commit-
tee on Transportation and Infrastructure of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate a report on the results of
the study conducted under this section, together with any
proposed changes to the method for apportioning funds to
urbanized areas with a population over 50,000.
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SEC. 5021. INTERCITY RAIL INFRASTRUCTURE INVESTMENT
FROM MASS TRANSIT ACCOUNT OF HIGHWAY
TRUST FUND.
Section 5323 of title 49, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(o) INTERCITY
RAIL
INFRASTRUCTURE
INVEST-
MENT.—Any assistance provided to a State that does not
have Amtrak service as of the date of enactment of this sub-
section from the Mass Transit Account of the Highway
Trust Fund may be used for capital improvements to, and
operating support for, intercity passenger rail service.’’.
SEC. 5022. NEW START RATING AND EVALUATION.
(a) CRITERIA FOR GRANTS AND LOANS FOR FIXED
GUIDEWAY SYSTEMS.—Section 5309(e) of title 49, United
States Code, is amended to read as follows:
‘‘(e) CRITERIA FOR GRANTS AND LOANS FOR FIXED
GUIDEWAY SYSTEMS.—
‘‘(1) The Secretary of Transportation may ap-
prove a grant or loan under this section for a capital
project for a new fixed guideway system or extension
of an existing fixed guideway system only if the Sec-
retary decides that the proposed project is—
‘‘(A) based on the results of an alternatives
analysis and preliminary engineering;
‘‘(B) justified based on a comprehensive re-
view of its mobility improvements, environ-
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mental benefits, cost effectiveness, and operating
efficiencies; and
‘‘(C) supported by an acceptable degree of
local financial commitment, including evidence
of stable and dependable financing sources to
construct, maintain, and operate the system or
extension.
‘‘(2) In evaluating a project under paragraph
(1)(A), the Secretary shall analyze and consider the
results of the alternatives analysis and preliminary
engineering for the project.
‘‘(3) In evaluating a project under paragraph
(1)(B), the Secretary shall—
‘‘(A) consider the direct and indirect costs
of relevant alternatives;
‘‘(B) account for costs and benefits related
to factors such as congestion relief, improved mo-
bility, air pollution, noise pollution, congestion,
energy consumption, and all associated ancillary
and mitigation costs necessary to carry out each
alternative analyzed;
‘‘(C) identify and consider mass transpor-
tation supportive existing land use policies and
future patterns, and the cost of urban sprawl;
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quired non-Federal share of the cost of the
project.
‘‘(5)(A) Not later than 120 days after the date
of enactment of the Federal Transit Act of 1998, the
Secretary of Transportation shall issue guidelines on
the manner in which the Secretary will evaluate and
rate the projects based on the results of alternatives
analysis, project justification, and the degree of local
financial commitment.
‘‘(B) The project justification under paragraph
(1)(B) shall be adjusted to reflect differences in local
land, construction, and operating costs as required
under this subsection.
‘‘(6)(A) A proposed project may advance from
alternatives analysis to preliminary engineering, and
may advance from preliminary engineering to final
design and construction, only if the Secretary of
Transportation finds that the project meets the re-
quirements of this section and there is a reasonable
likelihood that the project will continue to meet the
requirements.
‘‘(B) In making any findings under subpara-
graph (A), the Secretary shall evaluate and rate the
project as either highly recommended, recommended,
or not recommended, based on the results of alter-
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natives analysis, the project justification criteria, and
the degree of local financial commitment as required
under this subsection.
‘‘(C) In rating each project, the Secretary shall
provide, in addition to the overall project rating, in-
dividual ratings for each criteria established under
the guidelines issued under paragraph (5).
‘‘(7)(A) Each project financed under this sub-
section shall be carried out through a full funding
grant agreement.
‘‘(B) The Secretary shall enter a full funding
grant agreement based on evaluations and ratings re-
quired under this subsection.
‘‘(C) The Secretary shall not enter into a full
funding grant agreement for a project unless that
project is authorized for final design and construc-
tion.
‘‘(8)(A) A project for a fixed guideway system or
extension of an existing fixed guideway system is not
subject to the requirements of this subsection, and the
simultaneous evaluation of similar projects in at least
2 corridors in a metropolitan area may not be lim-
ited, if the assistance provided under this section with
respect to the project is less than $25,000,000.
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‘‘(B) The simultaneous evaluation of projects in
at least 2 corridors in a metropolitan area may not
be limited and the Secretary of Transportation shall
make decisions under this subsection with expedited
procedures that will promote carrying out an ap-
proved State Implementation Plan in a timely way
if a project is—
‘‘(i) located in a nonattainment area;
‘‘(ii) a transportation control measure (as
that term is defined in the Clean Air Act (42
U.S.C. 7401 et seq.)); and
‘‘(iii) required to carry out the State Imple-
mentation Plan.
‘‘(C) This subsection does not apply to a part of
a project financed completely with amounts made
available from the Highway Trust Fund (other than
the Mass Transit Account).
‘‘(D) This subsection does not apply to projects
for which the Secretary has issued a letter of intent
or entered into a full funding grant agreement before
the date of enactment of the Federal Transit Act of
1998.’’.
(b) LETTERS OF INTENT, FULL FINANCING GRANT
AGREEMENTS, 
AND
EARLY
SYSTEMS
WORK
AGREE-
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MENTS.—Section 5309(g) of title 49, United States Code,
is amended—
(1) in the subsection heading, by striking ‘‘FI-
NANCING’’ and inserting ‘‘FUNDING’’;
(2) by striking ‘‘full financing’’ each place it ap-
pears and inserting ‘‘full funding’’; and
(3) in paragraph (1)(B)—
(A) by striking ‘‘30 days’’ and inserting
‘‘60 days’’;
(B) by inserting ‘‘or entering into a full
funding grant agreement’’ after ‘‘this para-
graph’’; and
(C) by striking ‘‘issuance of the letter’’ and
inserting ‘‘letter or agreement. The Secretary
shall include with the notification a copy of the
proposed letter or agreement as well as evalua-
tions and ratings for the project’’.
(c) REPORTS.—Section 5309 of title 49, United States
Code, is amended by adding at the end the following:
‘‘(p) REPORTS.—
‘‘(1) FUNDING
LEVELS
AND
ALLOCATIONS
OF
FUNDS FOR FIXED GUIDEWAY SYSTEMS.—
‘‘(A) ANNUAL REPORT.—Not later than the
first Monday in February of each year, the Sec-
retary shall submit to the Committee on Trans-
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portation and Infrastructure of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a re-
port that includes a proposal on the allocation of
amounts to be made available to finance grants
and loans for capital projects for new fixed
guideway systems and extensions to existing
fixed guideway systems among applicants for
those amounts.
‘‘(B) RECOMMENDATIONS
ON
FUNDING.—
Each report submitted under this paragraph
shall include—
‘‘(i) evaluations and ratings, as re-
quired under subsection (e), for each project
that is authorized or has received funds
under this section since the date of enact-
ment of the Federal Transit Act of 1998 or
October 1 of the preceding fiscal year,
whichever date is earlier; and
‘‘(ii) recommendations of projects for
funding, based on the evaluations and rat-
ings and on existing commitments and an-
ticipated funding levels for the next 3 fiscal
years and for the next 10 fiscal years, based
on information available to the Secretary.
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‘‘(2) SUPPLEMENTAL REPORT ON NEW STARTS.—
On August 30 of each year, the Secretary shall submit
a report to Congress that describes the Secretary’s
evaluation and rating of each project that has com-
pleted alternatives analysis or preliminary engineer-
ing since the date of the last report. The report shall
include all relevant information that supports the
evaluation and rating of each project, including a
summary of each project’s financial plan.
‘‘(3) ANNUAL
GAO
REVIEW.—The Comptroller
General of the United States shall—
‘‘(A) conduct an annual review of—
‘‘(i) the processes and procedures for
evaluating and rating projects and rec-
ommending projects; and
‘‘(ii) the Secretary’s implementation of
such processes and procedures; and
‘‘(B) report to Congress on the results of
such review not later than April 30 of each
year.’’.
TITLE VI—REVENUE
SEC. 6001. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Intermodal Surface Transportation Revenue Act of 1998’’.
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(b) AMENDMENT OF 1986 CODE.—Except as otherwise
expressly provided, whenever in this title an amendment
or repeal is expressed in terms of an amendment to, or re-
peal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
SEC. 6002. EXTENSION AND MODIFICATION OF HIGHWAY-
RELATED TAXES AND TRUST FUND.
(a) EXTENSION OF TAXES AND EXEMPTIONS.—
(1) The following provisions are each amended
by striking ‘‘1999’’ each place it appears and insert-
ing ‘‘2005’’:
(A) Section 4041(a)(1)(C)(iii)(I) (relating
to rate of tax on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate
of tax on special motor fuels), as amended by
section 907(a)(1) of the Taxpayer Relief Act of
1997.
(C) Section 4041(m)(1)(A) (relating to cer-
tain alcohol fuels), as amended by section 907(b)
of the Taxpayer Relief Act of 1997.
(D) Section 4051(c) (relating to termi-
nation).
(E) Section 4071(d) (relating to termi-
nation).
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(F) Section 4081(d)(1) (relating to termi-
nation).
(G) Section 4221(a) (relating to certain
tax-free sales).
(H) Section 4481(e) (relating to period tax
in effect).
(I) Section 4482(c)(4) (relating to taxable
period).
(J) Section 4482(d) (relating to special rule
for taxable period in which termination date oc-
curs).
(K) Section 4483(g) (relating to termi-
nation of exemptions).
(L) Section 6156(e)(2) (relating to section
inapplicable to certain liabilities).
(M) Section 6412(a) (relating to floor stocks
refunds).
(2) The following provisions are each amended
by striking ‘‘2000’’ each place it appears and insert-
ing ‘‘2007’’:
(A) Section 4041(b)(2)(C) (relating to ter-
mination).
(B) Section 4041(k)(3) (relating to termi-
nation).
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(1) EXTENSION.—Section 9503 (relating to
Highway Trust Fund) is amended—
(A) in subsection (b)—
(i) in paragraph (1), as amended by
section 1032(e)(13) of the Taxpayer Relief
Act of 1997—
(I) by striking ‘‘1999’’ and insert-
ing ‘‘2005’’,
(II) by striking subparagraph (C),
(III) in subparagraph (D), by
striking ‘‘and tread rubber’’, and
(IV) by redesignating subpara-
graphs (D), (E), and (F) as subpara-
graphs (C), (D), and (E), respectively,
(ii) in paragraph (2), by striking
‘‘1999’’ each place it appears and inserting
‘‘2005’’ and by striking ‘‘2000’’ and insert-
ing ‘‘2006’’,
(iii) in the heading of paragraph (2),
by striking ‘‘OCTOBER 1, 1999’’ and inserting
‘‘OCTOBER 1, 2005’’, and
(iv) in subparagraphs (E) and (F) of
paragraph (4), as amended by section
901(a) of the Taxpayer Relief Act of 1997,
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by striking ‘‘1999’’ and inserting ‘‘2005’’,
and
(B) in subsection (c), as amended by section
9(a)(1) of the Surface Transportation Extension
Act of 1997—
(i) in paragraph (1)—
(I) by striking ‘‘1998’’ and insert-
ing ‘‘2003’’,
(II) in subparagraph (C), by
striking ‘‘or’’ at the end,
(III) in subparagraph (D), by
striking ‘‘1991.’’ and inserting ‘‘1991,
or’’,
(IV) by inserting after subpara-
graph (D) the following:
‘‘(E) authorized to be paid out of the High-
way Trust Fund under the Intermodal Surface
Transportation Efficiency Act of 1998.’’, and
(V) by striking the last sentence
and inserting the following:
‘‘In determining the authorizations under the Acts re-
ferred to in the preceding subparagraphs, such Acts
shall be applied as in effect on the date of the enact-
ment of the Intermodal Surface Transportation Effi-
ciency Act of 1998.’’,
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(ii) in paragraph (2)(A)(i)—
(I) by striking ‘‘2000’’ and insert-
ing ‘‘2006’’,
(II) in subclause (II), by adding
‘‘and’’ at the end,
(III) in subclause (IV), by strik-
ing ‘‘1999’’ and inserting ‘‘2005’’, and
(IV) by striking subclause (III)
and redesignating subclause (IV) as
subclause (III),
(iii) in paragraph (2)(A), by striking
clause (ii) and inserting the following:
‘‘(ii) the credits allowed under section
34 (relating to credit for certain uses of
fuel) with respect to fuel used before October
1, 2005.’’,
(iv) in paragraph (3)—
(I) by striking ‘‘July 1, 2000’’
and inserting ‘‘July 1, 2006’’, and
(II) by striking the heading and
inserting ‘‘FLOOR STOCKS REFUNDS’’,
(v) in paragraph (4)(A)—
(I) in clause (i), by striking
‘‘1998’’ and inserting ‘‘2003’’, and
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(II) in clause (ii), by adding at
the end the following new flush sen-
tence:
‘‘In making the determination under sub-
clause (II) for any fiscal year, the Secretary
shall not take into account any amount ap-
propriated from the Boat Safety Account in
any preceding fiscal year but not distrib-
uted.’’, and
(vi) in paragraph (5)(A), by striking
‘‘1998’’ and inserting ‘‘2003’’.
(2) LIMITATION ON EXPENDITURES.—
(A) IN GENERAL.—Section 9503(c) (relating
to expenditures from Highway Trust Fund), as
amended by subsection (d)(2)(A), is amended by
inserting after paragraph (5) the following:
‘‘(6) LIMITATION ON EXPENDITURES FROM HIGH-
WAY TRUST FUND.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no expenditure shall be made
from the Highway Trust Fund unless such ex-
penditure is permitted under a provision of this
title. The determination of whether an expendi-
ture is so permitted shall be made without re-
gard to—
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‘‘(i) any provision of law which is not
contained or referenced in this title and
which is not contained or referenced in a
revenue Act, and
‘‘(ii) whether such provision of law is
a subsequently enacted provision or directly
or indirectly seeks to waive the application
of this paragraph.
‘‘(B) 
EXCEPTION
FOR
PRIOR
OBLIGA-
TIONS.—Subparagraph (A) shall not apply to
any expenditure to liquidate any contract en-
tered into, or for any amount otherwise obli-
gated, in accordance with the provisions of this
section before October 1, 2003.’’.
(B) TRANSFER OF TAXES TO TRUST FUND
TERMINATED IF EXPENDITURE LIMITATION VIO-
LATED.—Section 9503(b)(4) (relating to certain
taxes not transferred to Highway Trust Fund),
as amended by subsection (b)(1)(A)(iv), is
amended—
(i) in subparagraph (E), by striking
‘‘or’’ at the end,
(ii) in subparagraph (F), by striking
the period at the end and inserting ‘‘, or’’,
and
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(iii) by adding at the end the follow-
ing:
‘‘(G) any provision described in paragraph
(1) on and after the date of any expenditure not
permitted by subsection (c)(6).’’.
(c) MODIFICATION
OF
SUBSIDIES
FOR
ALCOHOL
FUELS.—
(1) IN GENERAL.—Subsection (h) of section 40
(relating to alcohol used as fuel) is amended to read
as follows:
‘‘(h) REDUCED CREDIT FOR ETHANOL BLENDERS.—
‘‘(1) IN GENERAL.—In the case of any alcohol
mixture credit or alcohol credit with respect to any
sale or use of alcohol which is ethanol during cal-
endar years 2001 through 2007—
‘‘(A) subsections (b)(1)(A) and (b)(2)(A)
shall be applied by substituting ‘the blender
amount’ for ‘60 cents’,
‘‘(B) subsection (b)(3) shall be applied by
substituting ‘the low-proof blender amount’ for
‘45 cents’ and ‘the blender amount’ for ‘60 cents’,
and
‘‘(C) subparagraphs (A) and (B) of sub-
section (d)(3) shall be applied by substituting
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‘the blender amount’ for ‘60 cents’ and ‘the low-
proof blender amount’ for ‘45 cents’.
‘‘(2) AMOUNTS.—For purposes of paragraph (1),
the blender amount and the low-proof blender amount
shall be determined in accordance with the following
table:
In the case of any sale or
use during calendar year:
The blender amount
is:
The low-proof blend-
er amount is:
2001 or 2002
53 cents
39.26 cents
2003 or 2004
52 cents
38.52 cents
2005, 2006, or 2007 ............
51 cents
37.78 cents.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 4041(b)(2) is amended—
(i) in subparagraph (A)(i), by striking
‘‘5.4 cents’’ and inserting ‘‘the applicable
blender rate’’, and
(ii) by redesignating subparagraph
(C), as amended by subsection (a)(2)(A), as
subparagraph (D) and by inserting after
subparagraph (B) the following:
‘‘(C) APPLICABLE
BLENDER
RATE.—For
purposes of subparagraph (A)(i), the applicable
blender rate is—
‘‘(i) except as provided in clause (ii),
5.4 cents, and
‘‘(ii) for sales or uses during calendar
years 2001 through 2007, 1⁄10 of the blender
amount applicable under section 40(h)(2)
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for the calendar year in which the sale or
use occurs.’’.
(B) Subparagraph (A) of section 4081(c)(4)
is amended to read as follows:
‘‘(A) GENERAL RULES.—
‘‘(i) MIXTURES
CONTAINING
ETHA-
NOL.—Except as provided in clause (ii), in
the case of a qualified alcohol mixture
which contains gasoline, the alcohol mixture
rate is the excess of the rate which would
(but for this paragraph) be determined
under subsection (a) over—
‘‘(I) in the case of 10 percent gas-
ohol, the applicable blender rate (as de-
fined in section 4041(b)(2)(A)) per gal-
lon,
‘‘(II) in the case of 7.7 percent
gasohol, the number of cents per gallon
equal to 77 percent of such applicable
blender rate, and
‘‘(III) in the case of 5.7 percent
gasohol, the number of cents per gallon
equal to 57 percent of such applicable
blender rate.
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‘‘(ii) MIXTURES NOT CONTAINING ETH-
ANOL.—In the case of a qualified alcohol
mixture which contains gasoline and none
of the alcohol in which consists of ethanol,
the alcohol mixture rate is the excess of the
rate which would (but for this paragraph)
be determined under subsection (a) over—
‘‘(I) in the case of 10 percent gas-
ohol, 6 cents per gallon,
‘‘(II) in the case of 7.7 percent
gasohol, 4.62 cents per gallon, and
‘‘(III) in the case of 5.7 percent
gasohol, 3.42 cents per gallon.’’.
(C) Section 4081(c)(5) is amended by strik-
ing ‘‘5.4 cents’’ and inserting ‘‘the applicable
blender 
rate 
(as 
defined 
in 
section
4041(b)(2)(C))’’.
(D) Section 4091(c)(1) is amended by strik-
ing ‘‘13.4 cents’’ each place it appears and in-
serting ‘‘the applicable blender amount’’ and by
adding at the end the following: ‘‘For purposes
of this paragraph, the term ‘applicable blender
amount’ means 13.3 cents in the case of any sale
or use during 2001 or 2002, 13.2 cents in the
case of any sale or use during 2003 or 2004, 13.1
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HR 2400 EAS
cents in the case of any sale or use during 2005,
2006, or 2007, and 13.4 cents in the case of any
sale or use during 2008 or thereafter.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on January 1,
2001.
(d) 
ELIMINATION
OF
NATIONAL
RECREATIONAL
TRAILS TRUST FUND.—
(1) IN GENERAL.—Section 9511 (relating to Na-
tional Recreational Trails Trust Fund) is repealed.
(2) CONFORMING AMENDMENTS.—
(A) Section 9503(c) is amended by striking
paragraph (6).
(B) The table of sections for subchapter A of
chapter 98 is amended by striking the item relat-
ing to section 9511.
(e) AQUATIC RESOURCES TRUST FUND.—
(1) EXTENSION.—Section 9504(c) (relating to
expenditures from Boat Safety Account), as amended
by section 9(b) of the Surface Transportation Exten-
sion Act of 1997, is amended—
(A) by striking ‘‘1998’’ and inserting
‘‘2004’’, and
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(B) by striking ‘‘1988’’ and inserting ‘‘the
date of the enactment of the Intermodal Surface
Transportation Efficiency Act of 1998’’.
(2) LIMITATION
ON
EXPENDITURES.—Section
9504 (relating to Aquatic Resources Trust Fund) is
amended by redesignating subsection (d) as subsection
(e) and by inserting after subsection (c) the following:
‘‘(d) LIMITATION
ON EXPENDITURES
FROM TRUST
FUND.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no expenditure shall be made from the
Aquatics Resources Trust Fund unless such expendi-
ture is permitted under a provision of this title. The
determination of whether an expenditure is so per-
mitted shall be made without regard to—
‘‘(A) any provision of law which is not con-
tained or referenced in this title and which is
not contained or referenced in a revenue Act,
and
‘‘(B) whether such provision of law is a sub-
sequently enacted provision or directly or indi-
rectly seeks to waive the application of this sub-
section.
‘‘(2) EXCEPTION FOR PRIOR OBLIGATIONS FROM
THE BOAT SAFETY ACCOUNT.—Paragraph (1) shall
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not apply to any expenditure to liquidate any con-
tract entered into, or for any amount otherwise obli-
gated, in accordance with the provisions of subsection
(c) before April 1, 2004.
‘‘(3) TRANSFER OF TAXES TO TRUST FUND TER-
MINATED IF EXPENDITURE LIMITATION VIOLATED.—
For purposes of the second sentence of subsection
(a)(2), there shall not be taken into account any
amount described in subsection (b)(1), section
9503(c)(4), or section 9503(c)(5)(A) on and after the
date of any expenditure not permitted by paragraph
(1).’’.
(3) 
CONFORMING
AMENDMENTS.—Section
9504(b)(2) is amended—
(A) in subparagraph (A), by striking ‘‘Octo-
ber 1, 1988’’ and inserting ‘‘the date of the en-
actment of the Intermodal Surface Transpor-
tation Efficiency Act of 1998’’, and
(B) in subparagraph (B), by striking ‘‘No-
vember 29, 1990’’ and inserting ‘‘the date of the
enactment of the Intermodal Surface Transpor-
tation Efficiency Act of 1998’’.
SEC. 6003. MASS TRANSIT ACCOUNT.
(a) IN GENERAL.—Section 9503(e)(3) (relating to ex-
penditures from Account), as amended by section 9(a)(2)
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of the Surface Transportation Extension Act of 1997, is
amended—
(1) by striking ‘‘1998’’ and inserting ‘‘2003’’,
(2) in subparagraph (A), by striking ‘‘or’’ at the
end,
(3) in subparagraph (B), by adding ‘‘or’’ at the
end, and
(4) by striking all that follows subparagraph (B)
and inserting:
‘‘(C) the Intermodal Surface Transportation
Efficiency Act of 1998,
as such sections and Acts are in effect on the date of
the enactment of the Intermodal Surface Transpor-
tation Efficiency Act of 1998.’’.
(b) CONFORMING AMENDMENT.—Paragraph (4) of sec-
tion 9503(e) is amended to read as follows:
‘‘(4) LIMITATION.—Rules similar to the
rules of subsection (d) shall apply to the Mass
Transit Account.’’.
(c) TECHNICAL CORRECTION.—
(1) IN GENERAL.—Section 9503(e)(2) is amend-
ed by striking the last sentence and inserting the fol-
lowing: ‘‘For purposes of the preceding sentence, the
term ‘mass transit portion’ means, for any fuel with
respect to which tax was imposed under section 4041
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HR 2400 EAS
or 4081 and otherwise deposited into the Highway
Trust Fund, the amount determined at the rate of—
‘‘(A) except as otherwise provided in this
sentence, 2.86 cents per gallon,
‘‘(B) 1.43 cents per gallon in the case of
any partially exempt methanol or ethanol fuel
(as defined in section 4041(m)) none of the alco-
hol in which consists of ethanol,
‘‘(C) 1.86 cents per gallon in the case of liq-
uefied natural gas,
‘‘(D) 2.13 cents per gallon in the case of liq-
uefied petroleum gas, and
‘‘(E) 9.71 cents per MCF (determined at
standard temperature and pressure) in the case
of compressed natural gas.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
amendment made by section 901(b) of the Taxpayer
Relief Act of 1997.
SEC. 6004. TAX-EXEMPT FINANCING OF QUALIFIED HIGH-
WAY INFRASTRUCTURE CONSTRUCTION.
(a) TREATMENT AS EXEMPT FACILITY BOND.—A bond
described in subsection (b) shall be treated as described in
section 141(e)(1)(A) of the Internal Revenue Code of 1986,
except that—
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(1) section 146 of such Code shall not apply to
such bond, and
(2) section 147(c)(1) of such Code shall be ap-
plied by substituting ‘‘any portion of’’ for ‘‘25 percent
or more’’.
(b) BOND DESCRIBED.—
(1) IN GENERAL.—A bond is described in this
subsection if such bond is issued after the date of the
enactment of this Act as part of an issue—
(A) 95 percent or more of the net proceeds
of which are to be used to provide a qualified
highway infrastructure project, and
(B) to which there has been allocated a por-
tion of the allocation to the project under para-
graph (2)(C)(ii) which is equal to the aggregate
face amount of bonds to be issued as part of such
issue.
(2) 
QUALIFIED
HIGHWAY
INFRASTRUCTURE
PROJECTS.—
(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘‘qualified highway infra-
structure project’’ means a project—
(i) for the construction or reconstruc-
tion of a highway, and
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(ii) designated under subparagraph
(B) as an eligible pilot project.
(B) ELIGIBLE PILOT PROJECT.—
(i) IN
GENERAL.—The Secretary of
Transportation, in consultation with the
Secretary of the Treasury, shall select not
more 
than 
highway 
infrastructure
projects to be pilot projects eligible for tax-
exempt financing.
(ii) ELIGIBILITY CRITERIA.—In deter-
mining the criteria necessary for the eligi-
bility of pilot projects, the Secretary of
Transportation shall include the following:
(I) The project must serve the gen-
eral public.
(II) The project is necessary to
evaluate the potential of the private
sector’s participation in the provision
of the highway infrastructure of the
United States.
(III) The project must be located
on publicly-owned rights-of-way.
(IV) The project must be publicly
owned or the ownership of the highway
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constructed or reconstructed under the
project must revert to the public.
(V) The project must be consistent
with a transportation plan developed
pursuant to section 134(g) or 135(e) of
title 23, United States Code.
(C) AGGREGATE FACE AMOUNT OF TAX-EX-
EMPT FINANCING.—
(i) IN GENERAL.—The aggregate face
amount of bonds issued pursuant to this
section shall not exceed $15,000,000,000, de-
termined without regard to any bond the
proceeds of which are used exclusively to re-
fund (other than to advance refund) a bond
issued pursuant to this section (or a bond
which is a part of a series of refundings of
a bond so issued) if the amount of the re-
funding bond does not exceed the outstand-
ing amount of the refunded bond.
(ii) ALLOCATION.—The Secretary of
Transportation, in consultation with the
Secretary of the Treasury, shall allocate the
amount described in clause (i) among the
eligible pilot projects designated under sub-
paragraph (B).
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(iii) REALLOCATION.—If any portion
of an allocation under clause (ii) is unused
on the date which is 3 years after such allo-
cation, the Secretary of Transportation, in
consultation with the Secretary of the
Treasury, may reallocate such portion
among the remaining eligible pilot projects.
(c) REPORT.—
(1) IN GENERAL.—Not later than the earlier of—
(A) 1 year after either 1⁄2 of the projects au-
thorized under this section have been identified
or 1⁄2 of the total bonds allowable for the projects
under this section have been issued, or
(B) 7 years after the date of the enactment
of this Act,
the Secretary of Transportation, in consultation with
the Secretary of the Treasury, shall submit the report
described in paragraph (2) to the Committees on Fi-
nance and on Environment and Public Works of the
Senate and the Committees on Ways and Means and
on Transportation and Infrastructure of the House of
Representatives.
(2) CONTENTS.—The report under paragraph (1)
shall evaluate the overall success of the program con-
ducted pursuant to this section, including—
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(A) a description of each project under the
program,
(B) the extent to which the projects used
new technologies, construction techniques, or in-
novative cost controls that resulted in savings in
building the project, and
(C) the use and efficiency of the Federal tax
subsidy provided by the bond financing.
SEC. 6005. REPEAL OF 1.25 CENT TAX RATE ON RAIL DIESEL
FUEL.
(a) IN GENERAL.—Section 4041(a)(1)(C)(ii) (relating
to rate of tax on trains) is amended—
(1) in subclause (II), by striking ‘‘October 1,
1999’’ and inserting ‘‘March 1, 1999’’, and
(2) in subclause (III), by striking ‘‘September
30, 1999’’ and inserting ‘‘February 28, 1999’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 6421(f)(3)(B) is amended—
(A) in clause (ii), by striking ‘‘October 1,
1999’’ and inserting ‘‘March 1, 1999’’, and
(B) in clause (iii), by striking ‘‘September
30, 1999’’ and inserting ‘‘February 28, 1999’’.
(2) Section 6427(l)(3)(B) is amended—
(A) in clause (ii), by striking ‘‘October 1,
1999’’ and inserting ‘‘March 1, 1999’’, and
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(B) in clause (iii), by striking ‘‘September
30, 1999’’ and inserting ‘‘February 28, 1999’’.
SEC. 6006. ELECTION TO RECEIVE TAXABLE CASH COM-
PENSATION IN LIEU OF NONTAXABLE QUALI-
FIED TRANSPORTATION FRINGE BENEFITS.
(a) NO CONSTRUCTIVE RECEIPT.—
(1) IN
GENERAL.— Paragraph (4) of section
132(f) (relating to qualified transportation fringe) is
amended to read as follows:
‘‘(4) NO CONSTRUCTIVE RECEIPT.—No amount
shall be included in the gross income of an employee
solely because the employee may choose between any
qualified transportation fringe and compensation
which would otherwise be includible in gross income
of such employee.’’.
(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to taxable years beginning
after December 31, 1997.
(b) INCREASE
IN
MAXIMUM
EXCLUSION
FOR
EM-
PLOYER-PROVIDED TRANSIT PASSES.—
(1) IN GENERAL.—Subparagraph (A) of section
132(f)(2) (relating to limitation on exclusion) is
amended by striking ‘‘$60’’ and inserting ‘‘$100’’.
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(2) EFFECTIVE DATE.—The amendment made by
this subsection shall apply to taxable years beginning
after December 31, 2001.
(c) NO INFLATION ADJUSTMENT FOR 1999.—
(1) IN
GENERAL.—Paragraph (6) of section
132(f) (relating to qualified transportation fringe) is
amended to read as follows:
‘‘(6) INFLATION
ADJUSTMENT.—In the case of
any taxable year beginning in a calendar year after
1999, the dollar amounts contained in subparagraphs
(A) and (B) of paragraph (2) shall be increased by
an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar year
in which the taxable year begins, by substituting
‘calendar year 1998’ for ‘calendar year 1992’.
If any increase determined under the preceding sen-
tence is not a multiple of $5, such increase shall be
rounded to the next lowest multiple of $5.’’.
(2) 
CONFORMING
AMENDMENT.—Section
132(f)(2)(B) is amended by striking ‘‘$155’’ and in-
serting ‘‘$175’’.
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(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 1998.
(d) CONFORMING INFLATION ADJUSTMENT.—
(1) IN
GENERAL.—Paragraph (6) of section
132(f) (relating to qualified transportation fringe) is
amended to read as follows:
‘‘(6) INFLATION ADJUSTMENT.—
‘‘(A) ADJUSTMENT TO QUALIFIED PARKING
LIMITATION.—In the case of any taxable year be-
ginning in a calendar year after 1999, the dollar
amount contained in paragraph (2)(B) shall be
increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 1998’
for ‘calendar year 1992’.
‘‘(B) ADJUSTMENT
TO
OTHER
QUALIFIED
TRANSPORTATION FRINGES LIMITATION.—In the
case of any taxable year beginning in a calendar
year after 2002, the dollar amount contained in
paragraph (2)(A) shall be increased by an
amount equal to—
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‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, by substituting ‘calendar year 2001’
for ‘calendar year 1992’.
‘‘(c) ROUNDING.—If any increase deter-
mined under subparagraph (A) or (B) is not a
multiple of $5, such increase shall be rounded to
the next lowest multiple of $5.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to taxable years begin-
ning after December 31, 2002.
SEC. 6007. TAX TREATMENT OF CERTAIN FEDERAL PARTICI-
PATION PAYMENTS.
For purposes of the Internal Revenue Code of 1986,
with respect to any Federal participation payment to a tax-
payer in any taxable year made under section 149(e) of
title 23, United States Code, as added by section 1502, to
the extent such payment is not subject to tax under such
Code for the taxable year—
(1) no credit or deduction (other than a deduc-
tion with respect to any interest on a loan) shall be
allowed to the taxpayer with respect to any property
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placed in service or other expenditure that is directly
or indirectly attributable to the payment, and
(2) the basis of any such property shall be re-
duced by the portion of the cost of the property that
is attributable to the payment.
SEC. 6008. DELAY IN EFFECTIVE DATE OF NEW REQUIRE-
MENT FOR APPROVED DIESEL OR KEROSENE
TERMINALS.
Subsection (f) of section 1032 of the Taxpayer Relief
Act of 1997 is amended to read as follows:
‘‘(f) EFFECTIVE DATES.—
‘‘(1) Except as provided in paragraph (2), the
amendments made by this section shall take effect on
July 1, 1998.
‘‘(2) The amendment made by subsection (d)
shall take effect on July 1, 2000.’’.
SEC. 6009. REPEAL OF CERTAIN LIMITATION ON EXPENDI-
TURES.
(a) IN GENERAL.—Section 9503(c) of the Internal
Revenue Code of 1986 (relating to expenditures from High-
way Trust Fund) is amended by striking paragraph (7).
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(b) EFFECTIVE DATE.—The amendment made by this
section takes effect as if included in the enactment of section
901 of the Taxpayer Relief Act of 1997.
Attest:
Secretary.
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