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(F) $239,500,000 for fiscal year 2009. 
(2) TRAINING AND EDUCATION.—To carry out 
section 504 of title 23, United States Code, and sec-
tion 5211 of this Act, $24,500,000 for fiscal year 
2004 and $33,500,000 for each of fiscal years 2005 
through 2009. 
(3) BUREAU
OF
TRANSPORTATION
STATIS-
TICS.—For the Bureau of Transportation Statistics 
to carry out section 111 of title 49, United States 
Code, $31,000,000 for fiscal year 2004 and 
$33,000,000 for each of fiscal years 2005 through 
2009. 
(4) 
UNIVERSITY
TRANSPORTATION
RE-
SEARCH.—To carry out sections 5505 and 5506 of 
title 49, United States Code, $54,500,000 for fiscal 
year 2004 and $71,000,000 for each of fiscal years 
2005 through 2009. 
(5) INTELLIGENT
TRANSPORTATION
SYSTEMS 
(ITS) RESEARCH.—To carry out subtitle F of this 
title, $115,000,000 for each of fiscal years 2004 
through 2009. 
(6) ITS DEPLOYMENT.—To carry out sections 
5208 and 5209 of the Transportation Equity Act for 
the 21st Century (112 Stat. 458; 112 Stat. 460), 
$100,000,000 for fiscal years 2004 and 2005.
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(b) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by sub-
section (a) shall be available for obligation in the same 
manner as if such funds were apportioned under chapter 
1 of title 23, United States Code; except that the Federal 
share of the cost of a project or activity carried out using 
such funds shall be 50 percent, unless otherwise expressly 
provided by this Act (including the amendments made by 
this Act) or otherwise determined by the Secretary, and 
such funds shall remain available until expended and shall 
not be transferable. 
SEC. 5102. OBLIGATION CEILING. 
Notwithstanding any other provision of law, the total 
of all obligations from amounts made available from the 
Highway Trust Fund (other than the Mass Transit Ac-
count) by sections 5101(a) and 5401 of this Act shall not 
exceed $483,000,000 for fiscal year 2004, $484,000,000 
for fiscal year 2005, $485,000,000 for fiscal year 2006, 
$485,000,000 for fiscal year 2007, $486,000,000 for fis-
cal year 2008, and $487,000,000 for fiscal year 2009. 
SEC. 5103. FINDINGS. 
Congress finds the following: 
(1) Research and development are critical to de-
veloping and maintaining a transportation system 
that meets the goals of safety, mobility, economic vi-
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tality, efficiency, equity, and environmental protec-
tion. 
(2) Federally sponsored surface transportation 
research and development has produced many suc-
cesses. The development of rumble strips has in-
creased safety; research on materials has increased 
the lifespan of pavements, saving money and reduc-
ing the disruption caused by construction; and Geo-
graphic Information Systems have improved the 
management and efficiency of transit fleets. 
(3) Despite these important successes, the Fed-
eral surface transportation research and develop-
ment investment represents less than one percent of 
overall government spending on surface transpor-
tation. 
(4) While Congress increased funding for over-
all transportation programs by about 40 percent in 
the Transportation Equity Act for the 21st Century, 
funding for transportation research and development 
remained relatively flat. 
(5) The Federal investment in research and de-
velopment should be balanced between short-term 
applied and long-term fundamental research and de-
velopment. The investment should also cover a wide 
range of research areas, including research on mate-
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rials and construction, research on operations, re-
search on transportation trends and human factors, 
and research addressing the institutional barriers to 
deployment of new technologies. 
(6) Therefore, Congress finds that it is in the 
United States interest to increase the Federal in-
vestment in transportation research and develop-
ment, and to conduct research in critical research 
gaps, in order to ensure that the transportation sys-
tem meets the goals of safety, mobility, economic vi-
tality, efficiency, equity, and environmental protec-
tion. 
Subtitle B—Research, Technology, 
and Education 
SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION. 
(a) RESEARCH, TECHNOLOGY, AND EDUCATION.—
Title 23, United States Code, is amended—
(1) in the table of chapters by striking the item 
relating to chapter 5 and inserting the following:
‘5. RESEARCH, TECHNOLOGY, AND EDUCATION ........................
501’.
(2) by striking the heading for chapter 5 and 
inserting the following:
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‘CHAPTER 5—RESEARCH, TECHNOLOGY, 
AND EDUCATION’. 
(b) STATEMENT
OF PRINCIPLES GOVERNING RE-
SEARCH AND TECHNOLOGY INVESTMENTS.—Section 502 
of such title is amended—
(1) by redesignating subsections (a) through (g) 
as subsections (b) through (h), respectively; and 
(2) by inserting before subsection (b) (as so re-
designated) the following: 
‘(a) BASIC PRINCIPLES GOVERNING RESEARCH AND 
TECHNOLOGY INVESTMENTS.—
‘(1) COVERAGE.—Surface transportation re-
search and technology development shall include all 
activities leading to technology development and 
transfer, as well as the introduction of new and in-
novative ideas, practices, and approaches, through 
such mechanisms as field applications, education and 
training, and technical support. 
‘(2) FEDERAL RESPONSIBILITY.—Funding and 
conducting surface transportation research and tech-
nology transfer activities shall be considered a basic 
responsibility of the Federal Government when the 
work—
‘(A) is of national significance;
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‘(B) supports research in which there is a 
clear public benefit and private sector invest-
ment is less than optimal; 
‘(C) supports a Federal stewardship role in 
assuring that State and local governments use 
national resources efficiently; or 
‘(D) presents the best means to support 
Federal policy goals compared to other policy 
alternatives. 
‘(3) ROLE.—Consistent with these Federal re-
sponsibilities, the Secretary shall—
‘(A) conduct research; 
‘(B) support and facilitate research and 
technology transfer activities by State highway 
agencies; 
‘(C) share results of completed research; 
and 
‘(D) support and facilitate technology and 
innovation deployment. 
‘(4) PROGRAM CONTENT.—A surface transpor-
tation research program shall include—
‘(A) fundamental, long-term highway re-
search;
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‘(B) research aimed at significant highway 
research gaps and emerging issues with na-
tional implications; and 
‘(C) research related to policy and plan-
ning. 
‘(5) STAKEHOLDER
INPUT.—Federal surface 
transportation research and development activities 
shall address the needs of stakeholders. Stakeholders 
include States, metropolitan planning organizations, 
local governments, the private sector, researchers, 
research sponsors, and other affected parties, includ-
ing public interest groups. 
‘(6) COMPETITION AND PEER REVIEW.—Except 
as otherwise provided in this Act, the Secretary shall 
award all grants, contracts, and cooperative agree-
ments for research and development under this Act 
based on open competition and peer review of pro-
posals. 
‘(7) PERFORMANCE
REVIEW
AND
EVALUA-
TION.—To the maximum extent practicable, all sur-
face 
transportation 
research 
and 
development 
projects shall include a component of performance 
measurement and evaluation. Performance measures 
shall be established during the proposal stage of a 
research and development project and shall, to the
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maximum extent possible, be outcome-based. All 
evaluations shall be made readily available to the 
public.’. 
(c) PROCUREMENT FOR RESEARCH, DEVELOPMENT, 
AND
TECHNOLOGY
TRANSFER
ACTIVITIES.—Section 
502(b)(3) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘(3) 
COOPERATION, 
GRANTS, 
AND
CON-
TRACTS.—The Secretary may carry out research, de-
velopment, and technology transfer activities related 
to transportation—
‘(A) independently; 
‘(B) in cooperation with other Federal de-
partments, agencies, and instrumentalities and 
Federal laboratories; or 
‘(C) by making grants to, or entering into 
contracts, cooperative agreements, and other 
transactions with one or more of the following: 
the National Academy of Sciences, the Amer-
ican Association of State Highway and Trans-
portation Officials, any Federal laboratory, 
Federal agency, State agency, authority, asso-
ciation, institution, for-profit or nonprofit cor-
poration, organization, foreign country, any 
other person.’.
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(d) TRANSPORTATION POOLED FUND PROGRAM.—
Section 502(b) of such title (as redesignated by subsection 
(b) of this section), is amended by adding at the end the 
following: 
‘(6) POOLED FUNDING.—
‘(A) COOPERATION.—To promote effective 
utilization of available resources, the Secretary 
may cooperate with a State and an appropriate 
agency in funding research, development, and 
technology transfer activities of mutual interest 
on a pooled funds basis. 
‘(B) SECRETARY
AS
AGENT.—The Sec-
retary may enter into contracts, cooperative 
agreements, grants, and other transactions as 
agent for all participating parties in carrying 
out such research, development, or technology 
transfer.’. 
(e) OPERATIONS ELEMENTS IN RESEARCH ACTIVI-
TIES.—Section 502 of such title is further amended—
(1) in subsection (b)(1)(B) (as redesignated by 
subsection (b) of this section) by inserting ‘transpor-
tation system management and operations,’ after 
‘operation,’.
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(2) in subsection (d)(5)(C) (as redesignated by 
subsection (b) of this section) by inserting ‘system 
management and’ after ‘transportation’; and 
(3) by inserting at the end of subsection (d) (as 
redesignated by subsection (b) of this section) the 
following: 
‘(12) Investigation and development of various 
operational methodologies to reduce the occurrence 
and impact of recurrent congestion and nonrecurrent 
congestion and increase transportation system reli-
ability. 
‘(13) Investigation of processes, procedures, 
and technologies to secure container and hazardous 
material transport, including the evaluation of regu-
lations and the impact of good security practices on 
commerce and productivity. 
‘(14) Research, development, and technology 
transfer related to asset management.’. 
(f) FACILITATING TRANSPORTATION RESEARCH AND 
TECHNOLOGY
DEPLOYMENT
PARTNERSHIPS.—Section 
502(c)(2) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘(2) COOPERATION, GRANTS, CONTRACTS, AND 
AGREEMENTS.—Notwithstanding any other provision 
of law, the Secretary may directly initiate contracts,
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cooperative research and development agreements 
(as defined in section 12 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3710a)), and other transactions to fund, and accept 
funds from, the Transportation Research Board of 
the National Research Council of the National Acad-
emy of Sciences, State departments of transpor-
tation, cities, counties, and their agents to conduct 
joint transportation research and technology ef-
forts.’. 
(g) EXPLORATORY
ADVANCED
RESEARCH
PRO-
GRAM.—Section 502(e) of such title (as redesignated by 
subsection (b) of this section) is amended to read as fol-
lows: 
‘(e) EXPLORATORY ADVANCED RESEARCH.—
‘(1) IN GENERAL.—The Secretary shall estab-
lish an exploratory advanced research program, con-
sistent with the surface transportation research and 
technology development strategic plan developed 
under section 508 that involves and draws upon 
basic research results to provide a better under-
standing of problems and develop innovative solu-
tions. In carrying out the program, the Secretary 
shall strive to develop partnerships with public and 
private sector entities.
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‘(2) RESEARCH
AREAS.—In carrying out the 
program, the Secretary may make grants and enter 
into cooperative agreements and contracts in such 
areas of surface transportation research and tech-
nology as the Secretary determines appropriate, in-
cluding the following: 
‘(A) Characterization of materials used in 
highway infrastructure, including analytical 
techniques, microstructure modeling, and the 
deterioration processes. 
‘(B) Assessment of the effects of transpor-
tation decisions on human health. 
‘(C) Development of surrogate measures of 
safety. 
‘(D) Environmental research. 
‘(E) Data acquisition techniques for sys-
tem condition and performance monitoring. 
‘(F) System performance data and infor-
mation processing needed to assess the day-to-
day operational performance of the system in 
support of hour-to-hour operational decision-
making.’. 
(h) LONG-TERM PAVEMENT PERFORMANCE PRO-
GRAM.—