138
HR 3 IH1S 
‘(1) AUTHORITY OF STATE AGENCIES.—A State 
agency that has jurisdiction over the operation of a 
HOV facility shall establish the occupancy require-
ments of vehicles operating on the facility. 
‘(2) OCCUPANCY
REQUIREMENT.—Except as 
otherwise provided by this section, no fewer than 2 
occupants per vehicle may be required for use of a 
HOV facility. 
‘(b) EXCEPTIONS.—Notwithstanding the occupancy 
requirements of subsection (a)(2), the following exceptions 
shall apply with respect to a State agency operating a 
HOV facility: 
‘(1) MOTORCYCLES AND BICYCLES.—
‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility. 
‘(B) SAFETY EXCEPTION.—A State agency 
may restrict use of the HOV facility by motor-
cycles or bicycles (or both) if the agency cer-
tifies to the Secretary that such use would cre-
ate a safety hazard and the Secretary accepts 
the certification. The Secretary may accept a 
certification under this subparagraph only after 
the Secretary publishes notice of the certifi-
139
HR 3 IH1S 
cation in the Federal Register and provides an 
opportunity for public comment. 
‘(2) PUBLIC TRANSPORTATION VEHICLES.—The 
State agency may allow public transportation vehi-
cles to use the HOV facility if the agency—
‘(A) establishes requirements for clearly 
identifying the vehicles; and 
‘(B) establishes procedures for enforcing 
the restrictions on the use of the facility by 
such vehicles. 
‘(3) HIGH OCCUPANCY TOLL VEHICLES.—The 
State agency may allow vehicles not otherwise ex-
empt pursuant to this subsection to use the HOV fa-
cility if the operators of such vehicles pay a toll 
charged by the agency for use of the facility and the 
agency—
‘(A) establishes a program that addresses 
how motorists can enroll and participate in the 
toll program; 
‘(B) develops, manages, and maintains a 
system that will automatically collect the toll; 
and 
‘(C) establishes policies and procedures 
to—
140
HR 3 IH1S 
‘(i) manage the demand to use the fa-
cility by varying the toll amount that is 
charged; 
‘(ii) enforce violations of use of the fa-
cility; and 
‘(iii) permit low-income individuals to 
pay reduced tolls. 
‘(4) LOW
EMISSION
AND
ENERGY-EFFICIENT 
VEHICLES.—
‘(A) INHERENTLY
LOW-EMISSION
VEHI-
CLE.—Before September 30, 2009, the State 
agency may allow vehicles that are certified as 
inherently low-emission vehicles pursuant to 
section 88.311–93 of title 40, Code of Federal 
Regulations, and are labeled in accordance with 
section 88.312–93 of such title, to use the HOV 
facility if the agency establishes procedures for 
enforcing the restrictions on the use of the fa-
cility by such vehicles. 
‘(B) OTHER LOW EMISSION AND ENERGY-
EFFICIENT VEHICLES.—Before September 30, 
2009, the State agency may allow vehicles cer-
tified as low emission and energy-efficient vehi-
cles under subsection (e), and labeled in accord-
ance with subsection (e), to use the HOV facil-
141
HR 3 IH1S 
ity if the operators of such vehicles pay a toll 
charged by the agency for use of the facility 
and the agency—
‘(i) establishes a program that ad-
dresses the selection of vehicles under this 
paragraph; and 
‘(ii) establishes procedures for enforc-
ing the restrictions on the use of the facil-
ity by such vehicles. 
‘(C) AMOUNT OF TOLLS.— Tolls charged 
under subparagraph (B) may be less than tolls 
charged under paragraph (3). 
‘(c) REQUIREMENTS APPLICABLE TO TOLLS.—
‘(1) IN GENERAL.—Tolls may be charged under 
subsections (b)(3) and (b)(4) notwithstanding sec-
tion 301 and, except as provided in paragraphs (2) 
and (3), subject to the requirements of section 129. 
‘(2) HOV FACILITIES ON THE INTERSTATE SYS-
TEM.—Notwithstanding section 129, tolls may be 
charged under subsections (b)(3) and (b)(4) on a 
HOV facility on the Interstate System. 
‘(3) EXCESS
TOLL
REVENUES.—If a State 
agency makes a certification under the last sentence 
of section 129(a)(3) with respect to toll revenues col-
lected under subsections (b)(3) and (b)(4), the
142
HR 3 IH1S 
State, in the use of tolls revenues under that sen-
tence, shall give priority consideration to projects for 
developing alternatives to single occupancy vehicle 
travel and projects for improving highway safety. 
‘(d) HOV FACILITY MANAGEMENT, OPERATION, 
MONITORING, AND ENFORCEMENT.—
‘(1) IN GENERAL.—A State agency that allows 
vehicles to use a HOV facility under subsection 
(b)(3) or (b)(4) in a fiscal year shall certify to the 
Secretary that the agency will carry out the fol-
lowing responsibilities with respect to the facility in 
the fiscal year: 
‘(A) Establishing, managing, and sup-
porting a performance monitoring, evaluation, 
and reporting program for the facility that pro-
vides for continuous monitoring, assessment, 
and reporting on the impacts that such vehicles 
may have on the operation of the facility and 
adjacent highways. 
‘(B) Establishing, managing, and sup-
porting an enforcement program that ensures 
that the facility is being operated in accordance 
with the requirements of this section. 
‘(C) Limiting or discontinuing the use of 
the facility by such vehicles if the presence of
143
HR 3 IH1S 
such vehicles has degraded the operation of the 
facility. 
‘(2) DEGRADED FACILITY.—
‘(A) IN GENERAL.—For purposes of para-
graph (1), the operation of a HOV facility shall 
be considered to be degraded if vehicles oper-
ating on the facility are failing to maintain a 
minimum average operating speed 90 percent of 
the time over a consecutive 6-month period dur-
ing morning or evening weekday peak hour pe-
riods (or both). 
‘(B) 
MINIMUM
AVERAGE
OPERATING 
SPEED
DEFINED.—In subparagraph (A), the 
term ‘‘minimum average operating speed’’ 
means—
‘(i) 45 miles per hour, in the case of 
a HOV facility with a speed limit of 50 
miles per hour or greater; and 
‘(ii) not more than 10 miles per hour 
below the speed limit, in the case of a 
HOV facility with a speed limit of less 
than 50 miles per hour. 
‘(e) CERTIFICATION
OF LOW EMISSION
AND EN-
ERGY-EFFICIENT VEHICLES.—Not later than 6 months 
after the date of enactment of this section, the Adminis-
144
HR 3 IH1S 
trator of the Environmental Protection Agency shall issue 
a final rule establishing requirements for certification of 
vehicles as low emission and energy-efficient vehicles for 
purposes of this section and requirements for the labeling 
of such vehicles. 
‘(f) DEFINITIONS.—In this section, the following defi-
nitions apply: 
‘(1) ALTERNATIVE FUEL VEHICLE.—The term 
‘‘alternative fuel vehicle’’ means a vehicle that oper-
ates on—
‘(A) methanol, denatured ethanol, or other 
alcohols; 
‘(B) a mixture containing at least 85 per-
cent of methanol, denatured ethanol, and other 
alcohols by volume with gasoline or other fuels; 
‘(C) natural gas; 
‘(D) liquefied petroleum gas; 
‘(E) hydrogen; 
‘(F) coal derived liquid fuels; 
‘(G) fuels (except alcohol) derived from bi-
ological materials; 
‘(H) electricity (including electricity from 
solar energy); or 
‘(I) any other fuel that the Secretary pre-
scribes by regulation that is not substantially
145
HR 3 IH1S 
petroleum and that would yield substantial en-
ergy security and environmental benefits. 
‘(2) HOV FACILITY.—The term ‘‘HOV facility’’ 
means a high occupancy vehicle facility. 
‘(3) LOW
EMISSION
AND
ENERGY
EFFICIENT 
VEHICLE.—The term ‘‘low emission and energy-effi-
cient vehicle’’ means a vehicle that—
‘(A) has been certified by the Adminis-
trator of the Environmental Protection Agency 
as meeting the Tier II emission level established 
in regulations prescribed by the Administrator 
under section 202(i) of the Clean Air Act (42 
U.S.C. 7521(i)) for that make and model year 
vehicle; and 
‘(B)(i) has been certified by the Adminis-
trator to have a 45-mile-per-gallon or greater 
fuel economy highway rating; or 
‘(ii) is an alternative fuel vehicle. 
‘(4) PUBLIC TRANSPORTATION VEHICLE.—The 
term ‘‘public transportation vehicle’’ means a vehicle 
that provides public transportation (as defined in 
section 5302(a) of title 49). 
‘(5) STATE AGENCY.—The term ‘‘State agen-
cy’’, as used with respect to a HOV facility, means 
an agency of a State or local government having ju-
146
HR 3 IH1S 
risdiction over the operation of the facility and in-
cludes a State transportation department.’. 
(b) CONFORMING AMENDMENTS.—
(1) PROGRAM EFFICIENCIES.—Section 102 of 
title 23, United States Code, is amended by striking 
subsection (a) and redesignating subsections (b) and 
(c) as subsections (a) and (b), respectively. 
(2) CHAPTER ANALYSIS.—The analysis for sub-
chapter I of chapter 1 of such title is amended by 
adding at the end the following:
‘168. HOV facilities.’.
(c) TECHNICAL AMENDMENT.—Section 102(c) of 
title 23, United States Code, is amended by striking ‘10 
years’ and all that follows through ‘after’ and inserting 
‘10 years (or such longer period as the State requests and 
the Secretary determines to be reasonable) after’. 
SEC. 1209. CONGESTION PRICING PILOT PROGRAM. 
(a) ESTABLISHMENT.—Section 1012(b)(1) of the 
Intermodal Surface Transportation Efficiency Act of 1991 
(23 U.S.C. 149 note; 105 Stat. 1938) is amended to read 
as follows: 
‘(1) ESTABLISHMENT..—
‘(A) IN
GENERAL.—The Secretary may 
enter into cooperative agreements with State 
and local governments to carry out not more 
than 25 congestion pricing pilot projects.
147
HR 3 IH1S 
‘(B) PREVIOUSLY APPROVED PROJECTS.—
Projects carried out under paragraph (1) shall 
include each project approved under this sub-
section before the date of enactment of the 
Transportation Equity Act: A Legacy for Users 
and under which highway tolls are being col-
lected as of such date of enactment.’. 
(b) LOW-INCOME DRIVERS.— Section 1012(b)(7) of 
such Act is amended to read as follows: 
‘(7) REDUCED TOLLS FOR LOW-INCOME DRIV-
ERS.—Any congestion pricing pilot project carried 
out under this subsection that involves the collection 
of highway tolls shall include a program to permit 
low-income drivers to pay a reduced toll amount.’. 
(c) SET-ASIDE
FOR
PROJECTS
NOT
INVOLVING 
HIGHWAY TOLLS.—At the end of section 1012(b)(8) of 
such Act add the following: 
‘(D) SET-ASIDE
FOR
PROJECTS
NOT
IN-
VOLVING
HIGHWAY
TOLLS.—Of the amounts 
made available to carry out this subsection, 
$3,000,000 per fiscal year shall be available 
only for congestion pricing pilot projects that do 
not involve highway tolls.’. 
(d) CONFORMING AMENDMENTS.—Section 1012(b) 
of such Act is amended—
148
HR 3 IH1S 
(1) in the subsection heading by striking 
‘VALUE PRICING’ and inserting ‘CONGESTION PRIC-
ING’; 
(2) in paragraph (2)—
(A) by striking ‘(2) Notwithstanding’ and 
inserting the following: 
‘(2) FEDERAL SHARE; ELIGIBLE COSTS.—Not-
withstanding’; 
(B) in the first sentence by striking ‘pro-
grams’ and inserting ‘projects’; and 
(C) in the second sentence by striking ‘pro-
gram’ and inserting ‘project’; 
(3) in paragraph (3) by striking ‘(3) Revenues’ 
and inserting the following: 
‘(3) USE OF REVENUES.—Revenues’; 
(4) in paragraph (4)—
(A) by striking ‘(4) Notwithstanding’ and 
inserting the following: 
‘(4) USE OF TOLLS ON INTERSTATE SYSTEM.—
Notwithstanding’; 
(B) by striking ‘value pricing pilot pro-
gram’ and inserting ‘congestion pricing pilot 
project’; 
(5) in paragraph (5)—
149
HR 3 IH1S 
(A) by striking ‘(5) The Secretary’ and in-
serting the following: 
‘(5) MONITORING.—The Secretary’; and 
(B) by striking ‘programs’ the first and 
second place it appears and inserting ‘projects’; 
and 
(6) in paragraph (6) by striking ‘value pricing 
pilot program’ and inserting ‘congestion pricing pilot 
project’. 
SEC. 1210. CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY. 
Section 149(b)(5) of title 23, United States Code, is 
amended by inserting ‘improve transportation systems 
management and operations,’ after ‘intersections,’. 
SEC. 1211. SPECIAL RULES FOR STATE ASSUMPTION OF RE-
SPONSIBILITIES. 
(a) LIMITATIONS.—Section 167(a) of title 23, United 
States Code, as added by section 1207(a) of this Act, is 
amended by adding at the end the following: 
‘(3) LIMITATIONS.—
‘(A) PROCEDURAL AND SUBSTANTIVE RE-
QUIREMENTS.—A State that assumes the re-
sponsibilities of the Secretary under this section 
shall be subject to the same procedural and 
substantive requirements as would apply if the
150
HR 3 IH1S 
responsibilities were carried out by the Sec-
retary. When a State assumes responsibilities 
for carrying out a Federal law under this sec-
tion, the State assents to Federal jurisdiction 
and shall be solely responsible and solely liable 
for complying with and carrying out that law 
instead of the Secretary. 
‘(B) ASSUMPTION OF RESPONSIBILITIES.—
Any responsibility of the Secretary not assumed 
by the State in a memorandum of under-
standing shall remain a responsibility of the 
Secretary. 
‘(C) POWERS
OF
OTHER
AGENCIES.—
Nothing in this section preempts or limits any 
power, jurisdiction, responsibility, or authority 
of an agency, other than the Department of 
Transportation, with respect to a project.’. 
(b) ACCEPTANCE OF FEDERAL COURTS JURISDIC-
TION; TERMINATION OF AGREEMENTS.—Section 167(b) 
of title 23, United States Code, as added by section 
1207(a) of this Act, is amended by adding at the end the 
following: 
‘(5) ACCEPTANCE OF FEDERAL COURTS JURIS-
DICTION.—A memorandum of understanding with a 
State under this section shall include a provision
151
HR 3 IH1S 
under which the State consents to accept the juris-
diction of the Federal courts for the compliance, dis-
charge, and enforcement of any responsibility of the 
Secretary that the State may assume under the 
memorandum. 
‘(6) TERMINATION OF AGREEMENTS.—A memo-
randum of understanding with a State under this 
section shall include a provision authorizing the Sec-
retary to terminate the agreement if the Secretary, 
after providing an opportunity for a hearing, issues 
a finding that the State is not in compliance with 
the terms of the agreement.’. 
(c) STATE SUBJECT TO FEDERAL LAWS.—Section 
167 of title 23, United States Code, as added by section 
1207(a) of this Act, is further amended by adding at the 
end the following: 
‘(f) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming responsibilities of the Secretary under 
this section, a State agency entering into a memorandum 
of understanding under subsection (b) is deemed to be a 
Federal agency to the extent the State is carrying out the 
Secretary’s responsibilities under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), this 
title, and any other provision of Federal law.’.
152
HR 3 IH1S 
Subtitle C—Mobility and Efficiency 
SEC. 1301. NATIONAL CORRIDOR INFRASTRUCTURE IM-
PROVEMENT PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish and 
implement a program to make allocations to States for 
highway construction projects in corridors of national sig-
nificance to promote economic growth and international 
or interregional trade pursuant to the selection factors 
provided in this section. A State must submit an applica-
tion to the Secretary in order to receive an allocation 
under this section. 
(b) SELECTION PROCESS.—
(1) PRIORITY.—In the selection process under 
this section, the Secretary shall give priority to 
projects in corridors that are a part of, or will be 
designated as part of, the Dwight D. Eisenhower 
National System of Interstate and Defense High-
ways after completion of the work described in the 
application received by the Secretary and to any 
project that will be completed within 5 years of the 
date of the allocation of funds for the project. 
(2) SELECTION
FACTORS.—In making alloca-
tions under this section, the Secretary shall consider 
the following factors:
153
HR 3 IH1S 
(A) The extent to which the corridor pro-
vides a link between 2 existing segments of the 
Interstate System. 
(B) The extent to which the project will fa-
cilitate major multistate or regional mobility 
and economic growth and development in areas 
underserved by existing highway infrastructure. 
(C) The extent to which commercial vehicle 
traffic in the corridor—
(i) has increased since the date of en-
actment of the North American Free 
Trade Agreement Implementation Act (16 
U.S.C. 4401 et seq.); and 
(ii) is projected to increase in the fu-
ture. 
(D) The extent to which international 
truck-borne commodities move through the cor-
ridor. 
(E) The extent to which the project will 
make improvements to an existing segment of 
the Interstate System that will result in a de-
crease in congestion. 
(F) The reduction in commercial and other 
travel time through a major freight corridor ex-
pected as a result of the project.
154
HR 3 IH1S 
(G) The value of the cargo carried by com-
mercial vehicle traffic in the corridor and the 
economic costs arising from congestion in the 
corridor. 
(H) The extent of leveraging of Federal 
funds provided to carry out this section, includ-
ing—
(i) use of innovative financing; 
(ii) combination with funding provided 
under other sections of this Act and title 
23, United States Code; and 
(iii) combination with other sources of 
Federal, State, local, or private funding. 
(c) PERIOD OF AVAILABILITY.—Funds allocated for 
a project to a State under this section shall remain avail-
able for obligation in that State until 6 months from the 
day on which they are allocated. Sums not obligated within 
6 months of the day on which they are allocated shall be 
available to the Secretary to be allocated for other projects 
eligible under this section. 
(d) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall be determined in ac-
cordance with section 120(b) of title 23, United States 
Code.
155
HR 3 IH1S 
(e) APPLICABILITY OF TITLE 23.—Except as pro-
vided in subsections (c) and (d), funds made available by 
section 1101(a)(10) of this Act to carry out this section 
shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 
23, United States Code. 
(f) STATE DEFINED.—In this section, the term 
‘State’ has the meaning such term has under section 101 
of title 23, United States Code. 
SEC. 1302. COORDINATED BORDER INFRASTRUCTURE PRO-
GRAM. 
(a) GENERAL AUTHORITY.—The Secretary shall im-
plement a coordinated border infrastructure program 
under which the Secretary shall distribute funds to border 
States to improve the safe movement of motor vehicles at 
or across the border between the United States and Can-
ada and the border between the United States and Mexico. 
(b) ELIGIBLE USES.—A State may use funds appor-
tioned under this section only for—
(1) improvements in a border region to existing 
transportation and supporting infrastructure that fa-
cilitate cross-border motor vehicle and cargo move-
ments; 
(2) construction of highways and related safety 
and safety enforcement facilities in a border region
156
HR 3 IH1S 
that facilitate motor vehicle and cargo movements 
related to international trade; 
(3) operational improvements in a border re-
gion, including improvements relating to electronic 
data interchange and use of telecommunications, to 
expedite cross border motor vehicle and cargo move-
ment; 
(4) modifications to regulatory procedures to 
expedite safe and efficient cross border motor vehicle 
and cargo movements; and 
(5) international coordination of transportation 
planning, programming, and border operation with 
Canada and Mexico relating to expediting cross bor-
der motor vehicle and cargo movements. 
(c) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among bor-
der States sums authorized to be appropriated to carry 
out this section for such fiscal year as follows: 
(1) 20 percent in the ratio that—
(A) the total number of incoming commer-
cial trucks that pass through the land border 
ports of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of incoming commer-
cial trucks that pass through such ports of
157
HR 3 IH1S 
entry within the boundaries of all the border 
States, as determined by the Secretary. 
(2) 30 percent in the ratio that—
(A) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through land border ports of entry within the 
boundaries of a border State, as determined by 
the Secretary; bears to 
(B) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through such ports of entry within the bound-
aries of all the border States, as determined by 
the Secretary. 
(3) 25 percent in the ratio that—
(A) the total weight of incoming cargo by 
commercial trucks that pass through land bor-
der ports of entry within the boundaries of a 
border State, as determined by the Secretary; 
bears to 
(B) the total weight of incoming cargo by 
commercial trucks that pass through such ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(4) 25 percent of the ratio that—
158
HR 3 IH1S 
(A) the total number of land border ports 
of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of land border ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(d) APPLICABILITY
OF TITLE 23.—Funds made 
available to carry out this section shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable and shall 
remain available until expended and the Federal share of 
the cost of a project under this section shall be 80 percent. 
(e) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) BORDER
REGION.—The term ‘border re-
gion’ means any portion of a border State within 20 
miles of an international land border with Canada or 
Mexico. 
(2) BORDER STATE.—The term ‘border State’ 
means any State that has an international land bor-
der with Canada or Mexico. 
(3) COMMERCIAL TRUCK.—The term ‘commer-
cial truck’ means a commercial motor vehicle as de-
159
HR 3 IH1S 
fined in section 31301(4) (other than subparagraph 
(B)) of title 49, United States Code. 
(4) MOTOR VEHICLE.—The term ‘motor vehicle’ 
has the meaning such term has under section 101(a) 
of title 23, United States Code. 
(5) STATE.—The term ‘State’ has the meaning 
such term has in section 101(a) of such title 23. 
SEC. 1303. FREIGHT INTERMODAL CONNECTORS. 
(a) IN GENERAL.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight intermodal connector program to 
improve productivity and improve the efficiency of 
the transportation of freight, while mitigating con-
gestion in the area of freight intermodal connectors. 
(2) PURPOSES.—The purposes of the program 
shall be—
(A) to facilitate and support intermodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
intermodal connectors and mitigate the impact 
of congestion in the area of such connectors; 
and 
(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight intermodal connectors.
160
HR 3 IH1S 
(b) STATE RESPONSIBILITIES.—Under the program, 
each State shall ensure that intermodal freight transpor-
tation and trade facilitation and are adequately addressed 
integrated into the project development process, including 
transportation planning, through final design and con-
struction of freight related transportation projects. 
(c) ELIGIBLE PROJECTS.—
(1) IN GENERAL.—Projects eligible for funding 
under this section may include the construction of 
and improvements to publicly owned freight inter-
modal connectors, the provision of access to such 
connectors, and operational improvements for such 
connectors (including capital investment for intel-
ligent transportation systems); except that a project 
located within the boundaries of an intermodal 
freight facility shall only include highway infrastruc-
ture modifications necessary to facilitate direct inter-
modal access between the connector and the facility. 
(2) SPECIAL RULE.—If a State that does not 
have any freight intermodal connectors within its 
boundaries or has only freight intermodal connectors 
within its boundaries that are in good condition and 
provide an adequate level of service, projects within 
the boundaries of the State that are eligible for as-
sistance under section 103(b)(6) of title 23, United
161
HR 3 IH1S 
States Code, relating to the National Highway Sys-
tem, shall be eligible for funding under this section. 
(d) PRIORITY.—Under the program, a State shall 
give priority to projects on freight intermodal connectors 
to the National Highway System as identified according 
to the criteria set forth in the report of the Department 
of Transportation to Congress entitled ‘Pulling Together: 
The NHS and its Connections to Major Intermodal Termi-
nals’. 
(e) APPORTIONMENT.—On October 1 of each fiscal 
year, the Secretary shall apportion among the States sums 
made available to carry out this section for such fiscal year 
as follows: 
(1) 33.3 percent in the ratio that—
(A) the number of freight intermodal con-
nectors identified in the most recent Intermodal 
Freight Connectors study of the Federal High-
way Administration within the boundaries of a 
State; bears to 
(B) the total number of such connectors 
within the boundaries of all the States. 
(2) 33.3 percent in the ratio that—
(A) the total of each State’s annual con-
tributions to the Highway Trust Fund (other
162
HR 3 IH1S 
than the Mass Transit Account) attributable to 
commercial motor vehicles; bears to 
(B) the total of such annual contributions 
by all States. 
(3) 33.4 percent in the same ratios as funds are 
apportioned for the National Highway System under 
clauses (i), (ii), (iii), and (iv) of section 104(b)(1)(A) 
of title 23, United States Code. 
(f) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost 
of a project under this section shall be 80 percent. 
(g) UPDATE REPORT.—Not later than August 1, 
2005, the Secretary shall publish an update to the report 
entitled ‘Pulling Together: the National Highway System 
and its Connections to Major Intermodal Terminals’. 
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FREIGHT INTERMODAL CONNECTORS.—The 
term ‘freight intermodal connector’ means the road-
way that connects to an intermodal freight facility 
that carries or will carry intermodal traffic.
163
HR 3 IH1S 
(2) INTERMODAL
FREIGHT
FACILITY.—The 
term ‘intermodal freight facility’ means a port, air-
port, truck-rail terminal, and pipeline-truck ter-
minal. 
(3) STATE.—The term ‘State’ has the meaning 
such term has in section 101(a) of title 23, United 
States Code. 
SEC. 1304. PROJECTS OF NATIONAL AND REGIONAL SIG-
NIFICANCE. 
(a) FINDINGS.—Congress finds the following: 
(1) Under current law, surface transportation 
programs rely primarily on formula capital appor-
tionments to States. 
(2) Despite the significant increase for surface 
transportation program funding in the Transpor-
tation Equity Act of the 21st Century, current levels 
of investment are insufficient to fund critical high-
cost transportation infrastructure facilities that ad-
dress critical national economic and transportation 
needs. 
(3) Critical high-cost transportation infrastruc-
ture facilities often include multiple levels of govern-
ment, agencies, modes of transportation, and trans-
portation goals and planning processes that are not
164
HR 3 IH1S 
easily addressed or funded within existing surface 
transportation program categories. 
(4) Projects of national and regional signifi-
cance have national and regional benefits, including 
improving economic productivity by facilitating inter-
national trade, relieving congestion, and improving 
transportation safety by facilitating passenger and 
freight movement. 
(5) The benefits of such projects described in 
paragraph (4) accrue to local areas, States, and the 
Nation as a result of the effect such projects have 
on the national transportation system. 
(6) A program dedicated to constructing 
projects of national and regional significance is nec-
essary to improve the safe, secure, and efficient 
movement of people and goods throughout the 
United States and improve the health and welfare of 
the national economy. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish a program to provide grants to qualified 
entities for projects of national and regional significance. 
(c) DEFINITIONS.—
(1) ELIGIBLE PROJECT COSTS.—The term ‘eli-
gible project costs’ means the costs of—
165
HR 3 IH1S 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
neering 
and 
design 
work, 
and 
other 
preconstruction activities; and 
(B) construction, reconstruction, rehabili-
tation, and acquisition of real property (includ-
ing land related to the project and improve-
ments to land), environmental mitigation, con-
struction contingencies, acquisition of equip-
ment, and operational improvements. 
(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means any surface transportation project el-
igible for Federal assistance under title 23, United 
States Code, including freight railroad projects and 
activities eligible under such title. 
(3) QUALIFIED
ENTITY.—The term ‘qualified 
entity’ means a State as defined in section 101(a) 
of title 23, United States Code. 
(d) ELIGIBILITY.—To be eligible for assistance under 
this section, a project shall have eligible project costs that 
are reasonably anticipated to equal or exceed the lesser 
of—
(1) $500,000,000; or
166
HR 3 IH1S 
(2) 75 percent of the amount of Federal high-
way assistance funds apportioned for the most re-
cently completed fiscal year to the State in which 
the project is located. 
(e) 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. 
(f) COMPETITIVE GRANT SELECTION AND CRITERIA 
FOR GRANTS.—
(1) IN GENERAL.—The Secretary shall—
(A) establish criteria for selecting among 
projects that meet the eligibility criteria speci-
fied in subsection (d); 
(B) conduct a national solicitation for ap-
plications; and 
(C) award grants on a competitive basis. 
(2) CRITERIA
FOR
GRANTS.—The Secretary 
may approve a grant under this section for a project 
only if the Secretary determines that the project—
(A) is based on the results of preliminary 
engineering; 
(B) is justified based on the project’s abil-
ity—
167
HR 3 IH1S 
(i) to generate national economic ben-
efits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product; 
(ii) to reduce congestion, including 
impacts in the State, region, and Nation; 
(iii) to improve transportation safety, 
including reducing transportation acci-
dents, injuries, and fatalities; 
(iv) to otherwise enhance the national 
transportation system; and 
(v) to garner support for non-Federal 
financial commitments and provide evi-
dence of stable and dependable financing 
sources to construct, maintain, and operate 
the infrastructure facility; and 
(C) is supported by an acceptable degree of 
non-Federal financial commitments, including 
evidence of stable and dependable financing 
sources to construct, maintain, and operate the 
infrastructure facility. 
(3) SELECTION CONSIDERATIONS.—In selecting 
a project under this section, the Secretary shall con-
sider the extent to which the project—
168
HR 3 IH1S 
(A) leverages Federal investment by en-
couraging non-Federal contributions to the 
project, including contributions from public-pri-
vate partnerships; 
(B) uses new technologies, including intel-
ligent transportation systems, that enhance the 
efficiency of the project. 
(C) helps maintain or protect the environ-
ment. 
(4) PRELIMINARY
ENGINEERING.—In evalu-
ating a project under paragraph (2)(A), the Sec-
retary shall analyze and consider the results of pre-
liminary engineering for the project. 
(5) NON-FEDERAL FINANCIAL COMMITMENT.—
(A) EVALUATION OF PROJECT.—In evalu-
ating a project under paragraph (2)(C), the 
Secretary shall require that—
(i) the proposed project plan provides 
for the availability of contingency amounts 
that the Secretary determines to be reason-
able to cover unanticipated cost increases; 
and 
(ii) each proposed non-Federal source 
of capital and operating financing is stable,