‘‘(A) shall remain available to a project for 
1 year after the fiscal year for which the 
amount is made available; and 
‘‘(B) that remains unobligated at the end 
of the period described in subparagraph (A), 
shall be added to the amount made available 
under this subsection in the following fiscal 
year. 
‘‘(7) DESIGNATED RECIPIENT DEFINED.—The 
term ‘designated recipient’ has the same meaning as 
in subsection (a). 
‘‘(8) FUNDING.— 
‘‘(A) FROM
THE
TRUST
FUND.—There 
shall be available from the Mass Transit Ac-
count of the Highway Trust Fund to carry out 
this subsection— 
‘‘(i) $20,000,000 for fiscal year 2006; 
‘‘(ii) $30,000,000 for fiscal year 2007; 
‘‘(iii) $40,000,000 for fiscal year 
2008; 
‘‘(iv) $50,000,000 for fiscal year 
2009; and 
‘‘(v) $60,000,000 for fiscal year 2010. 
‘‘(B) FROM THE GENERAL FUND.—In ad-
dition to amounts made available under sub-
paragraph (A), there is authorized to be appro-
priated to carry out this subsection— 
‘‘(i) $10,000,000 for fiscal year 2006; 
‘‘(ii) $15,000,000 for fiscal year 2007; 
‘‘(iii) $20,000,000 for fiscal year 
2008; 
‘‘(iv) $25,000,000 for fiscal year 
2009; and 
‘‘(v) $30,000,000 for fiscal year 2010. 
‘‘(C) CONTRACT AUTHORITY.— 
‘‘(i) GRANTS
FINANCED
FROM
THE 
HIGHWAY
TRUST
FUND.—A grant ap-
proved by the Secretary that is financed 
with amounts made available under sub-
paragraph (A) is a contractual obligation 
of the United States Government to pay 
the Government’s share of the cost of the 
project. 
‘‘(ii) GRANTS FINANCED FROM GEN-
ERAL FUNDS.—A grant approved by the 
Secretary that is financed with amounts 
made available under subparagraph (B) is 
a contractual obligation of the 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 ap-
propriations Act.’’. 
SEC. 203. CONSERVE BY BICYCLING PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a Conserve By Bicycling pilot pro-
gram that shall provide for up to 10 geographically dis-
persed projects to encourage the use of bicycles in place 
of motor vehicles. 
(b) PROJECTS.—Projects carried out under this sec-
tion shall— 
(1) use education and marketing to convert 
motor vehicle trips to bike trips; 
(2) establish infrastructure facilities necessary 
to support the conversion to bike trips; 
(3) document project results and energy sav-
ings; and 
(4) facilitate partnerships among entities in the 
fields of transportation, law enforcement, education, 
public health, environment, or energy. 
(c) FEDERAL SHARE.—The Federal share of the cost 
of a project carried out under this section shall not exceed 
80 percent. 
(d) REPORT.—Not later than 2 years after implemen-
tation of the projects under this section, the Secretary
shall transmit to Congress a report on the results of the 
pilot program. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000. Such sums shall remain available until ex-
pended. 
SEC. 204. ENERGY IMPACTS OF FEDERAL-AID HIGHWAY 
AND TRANSIT PROJECTS. 
Section 109 of title 23, United States Code, is 
amended by adding at the end the following: 
‘‘(r) CONSIDERATION OF ENERGY IMPACTS.—Envi-
ronmental impact statements prepared for Federal-aid 
highway and transit projects shall consider energy impacts 
as an environmental consequence of the project. Energy 
impacts shall be quantified and comparisons made be-
tween alternatives. The cost of annual energy consumption 
shall be determined for each alternative considered in the 
environmental impact statement.’’. 
SEC. 205. RAILROAD EFFICIENCY. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation, in conjunction with the Administrator of the Envi-
ronmental Protection Agency, shall establish a public-pri-
vate research partnership involving the Federal Govern-
ment, railroad carriers, locomotive manufacturers and 
equipment suppliers, and the research and test center
dedicated to the advancement of railroad technology, effi-
ciency, and safety that is owned by the Federal Railroad 
Administration and operated in the private sector. The 
goal of the initiative shall include developing and dem-
onstrating locomotive technologies that increase fuel econ-
omy, reduce emissions, and lower costs. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$35,000,000 for each of fiscal years 2006 through 2008. 
Such sums shall remain available until expended. 
TITLE III—AVIATION 
SEC. 301. CLEAN AIRPORT BUS PILOT PROGRAM. 
(a) IN GENERAL.—Subchapter I of chapter 471 of 
title 49, United States Code, is amended by adding at the 
end the following: 
‘‘§ 47138. Clean airport bus pilot program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a pilot program for awarding grants 
on a competitive basis to eligible entities for facilitating 
the use of alternative fuel and ultra-low sulfur diesel buses 
at public airports through airport bus replacement and 
fleet expansion programs under this section. 
‘‘(b) REQUIREMENTS.—Not later than 6 months 
after the date of enactment of this Act, the Secretary shall 
establish and publish in the Federal Register requirements
for implementation of the program under this section, in-
cluding eligibility for assistance, management, transfer, 
and ultimate disposition of buses, and certification re-
quirements to ensure compliance with this section. 
‘‘(c) SOLICITATION.—Not later than 9 months after 
the date of enactment of this Act, the Secretary shall so-
licit proposals for grants under this section. 
‘‘(d) ELIGIBLE
RECIPIENTS.—A grant shall be 
awarded under this section only to a public agency respon-
sible for bus service at a public airport. 
‘‘(e) TYPES OF GRANTS.— 
‘‘(1) IN GENERAL.—Grants under this section 
may be for the purposes described in paragraph (2), 
paragraph (3), or both. 
‘‘(2) REPLACEMENT
BUS
GRANTS.—A grant 
under this section may be used for the acquisition of 
replacement buses. 
‘‘(3) FLEET EXPANSION BUS GRANTS.—A grant 
under this section may be used for the acquisition of 
not more than 10 buses to expand a fleet of airport 
buses at any single airport. 
‘‘(f) PRIORITY OF GRANT APPLICATIONS.—In award-
ing bus replacement grants described in subsection (e)(2), 
the Secretary shall give priority to awarding grants to ap-
plicants emphasizing the replacement of buses to be used
at a public airport located in a nonattainment area, as 
defined in section 171 of the Clean Air Act (42 U.S.C. 
7501). 
‘‘(g) CONDITIONS
OF GRANT.—A grant provided 
under this section shall include the following conditions: 
‘‘(1) All buses acquired with funds provided 
under the grant shall be operated as part of the air-
port bus fleet for which the grant was made for a 
minimum of 5 years. 
‘‘(2) Funds provided under the grant may only 
be used— 
‘‘(A) to acquire new or replacement alter-
native fuel and ultra-low sulfur diesel fuel 
buses, including State taxes and contract fees; 
and 
‘‘(B) to construct infrastructure facilities 
to enable the delivery of fuel and services nec-
essary for alternative fuel and ultra-low sulfur 
diesel fuel buses. 
‘‘(h) FEDERAL SHARE.—The Federal share of the 
cost of a bus acquired or other project or activity funded 
using amounts made available to carry out this section 
shall be 80 percent. 
‘‘(i) DEPLOYMENT AND DISTRIBUTION.—The Sec-
retary shall seek to the maximum extent practicable to en-
sure a broad geographic distribution of grant awards, with 
a goal of no State receiving more than 10 percent of the 
grant funding made available under this section for a fis-
cal year. 
‘‘(j) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) AIRPORT
BUS.—The term ‘airport bus’ 
means a bus operated by a public agency to provide 
transportation between the facilities of a public air-
port. 
‘‘(2) ALTERNATIVE FUEL BUS.—The term ‘al-
ternative fuel bus’ means a bus powered substan-
tially by electricity (including electricity supplied by 
a fuel cell), or by liquefied natural gas, compressed 
natural gas, liquefied petroleum gas, hydrogen, pro-
pane, or methanol or ethanol at no less than 85 per-
cent by volume. 
‘‘(3) PUBLIC AIRPORT.—The term ‘public air-
port’ has the meaning such term has under section 
47102 of title 49, United States Code. 
‘‘(4) ULTRA-LOW
SULFUR
DIESEL
BUS.—The 
term ‘ultra-low sulfur diesel bus’ means a bus pow-
ered by diesel fuel which contains sulfur at not more 
than 15 parts per million.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary of Trans-
portation for carrying out this section— 
‘‘(1) $20,000,000 for fiscal year 2006; 
‘‘(2) $30,000,000 for fiscal year 2007; 
‘‘(3) $40,000,000 for fiscal year 2008; 
‘‘(4) $50,000,000 for fiscal year 2009; and 
‘‘(5) $60,000,000 for fiscal year 2010. 
Such sums shall remain available until expended.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 471 of title 49, United States Code, is amended 
by inserting after the item relating to section 47137 the 
following: 
‘‘47138. Clean airport bus pilot program.’’. 
SEC. 302. CLEAN AIRCRAFT ENGINES. 
(a) PUBLIC-PRIVATE RESEARCH PARTNERSHIP.— 
The Administrator of the Federal Aviation Administration 
shall establish a public-private research partnership in-
volving the Federal Aviation Administration, the National 
Aeronautics and Space Administration, research univer-
sities, and representatives of the aero-propulsion industry. 
(b) DUTIES.—The partnership shall— 
(1) develop a clean ground demonstrator engine 
utilizing technologies developed by the Ultra Effi-
cient Engine Technology (UEET) and Quiet Air-
craft Technology (QAT) programs of the National 
Aeronautics and Space Administration; and 
(2) focus on the development and certification 
of environmentally friendly manufacturing tech-
nologies, materials, and overhaul and repair. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal years 2006 
through 2010. Such sums shall remain available until ex-
pended. 
TITLE IV—WATER RESOURCES 
SEC. 401. MARINE EFFICIENCY. 
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a public-private research partnership 
involving the Federal Government, vessel operators, ports, 
terminal operators, shipyards, and equipment suppliers to 
develop and demonstrate technologies that— 
(1) increase fuel economy, reduce emissions, 
and lower costs of marine transportation; and 
(2) increase the efficiency of intermodal trans-
fers. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal years 2006
through 2010. Such sums shall remain available until ex-
pended. 
SEC. 402. IMPROVING HYDROPOWER CAPABILITIES. 
(a) STUDY.—The Secretary of the Army shall con-
duct a study on the potential for reduced fossil fuel con-
sumption through an increase in United States hydro-
power capabilities. 
(b) CONTENTS.—The study shall include an examina-
tion of the potential for improving hydropower capabilities 
at dams owned or operated by the Corps of Engineers. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall transmit to 
Congress a report containing the results of the study con-
ducted under this section. 
SEC. 403. ENCOURAGEMENT OF STATE PROHIBITIONS ON 
OFF-SHORE DRILLING IN THE GREAT LAKES. 
(a) FINDINGS.—Congress finds the following: 
(1) The water resources of the Great Lakes 
Basin are precious natural resources of the States of 
Illinois, Indiana, Michigan, Minnesota, New York, 
Ohio, Pennsylvania, and Wisconsin. 
(2) The environmental dangers associated with 
off-shore drilling in the Great Lakes for oil and gas 
outweigh the potential benefits of such drilling.
(3) In accordance with the Submerged Lands 
Act (43 U.S.C. 1301 et seq.), each State that bor-
ders any of the Great Lakes has authority over the 
area between that State’s coastline and the bound-
ary of Canada or another State. 
(4) The States of Illinois, Michigan, New York, 
Pennsylvania, and Wisconsin each have a statutory 
prohibition of off-shore drilling in the Great Lakes 
for oil and gas. 
(5) The States of Indiana, Minnesota, and Ohio 
do not have such a prohibition. 
(b) ENCOURAGEMENT OF STATE PROHIBITIONS.— 
Congress encourages— 
(1) the States of Illinois, Michigan, New York, 
Pennsylvania, and Wisconsin to continue to prohibit 
off-shore drilling in the Great Lakes for oil and gas; 
and 
(2) the States of Indiana, Minnesota, and Ohio 
to enact a prohibition of such drilling. 
TITLE V—TAX PROVISIONS 
SEC. 501. EXTENSION OF TRANSPORTATION FRINGE BEN-
EFIT TO COMMUTERS WHO BICYCLE, CAR-
POOL, OR USE CAR-SHARING. 
(a) IN GENERAL.—Paragraph (1) of section 132(f) 
of the Internal Revenue Code of 1986 (relating to general
rule for qualified transportation fringe) is amended by 
adding at the end the following: 
‘‘(D) Other commuting allowances.’’. 
(b) OTHER COMMUTING ALLOWANCES DEFINED.— 
Paragraph (5) of section 132(f) of such Code (relating to 
definitions) is amended by adding at the end the following: 
‘‘(F) OTHER COMMUTING ALLOWANCES.— 
‘‘(i) IN GENERAL.—The term ‘other 
commuting allowances’ means an amount 
provided to an employee for transportation 
by bicycling, carpooling, or car-sharing if 
such transportation is in connection with 
travel between the employee’s residence 
and place of employment. 
‘‘(ii) BICYCLING.—For purposes of 
clause (i), bicycling includes regular bicycle 
maintenance, and expenses for accessing 
space, locker, and shower facilities, secured 
bike storage, and other services directly as-
sociated with bicycling. 
‘‘(iii) CARPOOLING.—For purposes of 
clause (i), the term ‘carpooling’ means the 
carrying of more than 1, but not more 
than 6, passengers by highway vehicle on 
any public road or highway, either regu-