for making grants under this section for eligible 
projects. 
‘‘(E) 
TRANSPORTATION
ALTERNATIVES 
PROGRAM.—The State shall reserve 33 percent 
of the amount reserved by the State for the fis-
cal year under section 213(c)(1)(B) for making 
grants under this section for eligible projects 
that are projects described in section 213(b). 
‘‘(2) SPECIAL RULE.—Any funds that a State 
directly suballocates to metropolitan areas or direct 
recipients of funds under section 5307 of title 49 or 
awards through an open statewide competition to eli-
gible entities shall be excluded from the funds from 
which reservations are to be made under paragraph 
(1). 
‘‘(3) NON-AWARDED FUNDS.—For each fiscal 
year, a State shall— 
‘‘(A) determine— 
‘‘(i) the total amount of funds, if any, 
that have been reserved by the State for 
the fiscal year under paragraph (1) but 
have not been awarded by the State in 
grants under this section on or before the 
last day of the fiscal year; and 
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‘‘(ii) the total amount of funds, if any, 
that have been awarded in grants by the 
State under this section but remain unobli-
gated by the grant recipient after the last 
day of the 5-year period beginning on the 
date on which the grant was awarded; and 
‘‘(B) distribute or redistribute such funds, 
as appropriate, using the process under sub-
section (c)(2). 
‘‘(f) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local government; 
‘‘(B) a regional transportation authority; 
‘‘(C) a transit agency; 
‘‘(D) a tribal government; 
‘‘(E) a private provider of public transpor-
tation; 
‘‘(F) a nonprofit transportation organiza-
tion; 
‘‘(G) a port authority; 
‘‘(H) a joint power authority; or 
‘‘(I) a local rail authority. 
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‘‘(2) ELIGIBLE
PROJECT.—The term ‘eligible 
project’ means— 
‘‘(A) a project eligible under— 
‘‘(i) section 133(b), relating to the 
surface transportation program; 
‘‘(ii) section 148, relating to the high-
way safety improvement program; 
‘‘(iii) section 149(b), relating to the 
congestion mitigation and air quality im-
provement program; or 
‘‘(iv) section 213(b), relating to the 
transportation alternatives program; or 
‘‘(B) a surface transportation project that 
will improve the movement of goods along a pri-
mary freight network, including multimodal fa-
cilities near a primary freight route. 
‘‘(3) PROGRAM.—The term ‘program’, except as 
otherwise specifically provided, means the innovation 
in surface transportation program established under 
this section. 
‘‘(4) STATE
SELECTION
PANEL.—The term 
‘State selection panel’ means an innovation in sur-
face transportation selection panel established by a 
State under subsection (d). 
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‘‘(g) TRANSPARENCY.—Not later than 30 days after 
a State has selected projects for a fiscal year to receive 
funding under this section, the State shall make available, 
in a publically accessible medium that is easy to navi-
gate— 
‘‘(1) the criteria and methodology used to select 
the projects; 
‘‘(2) a list of all the projects for which funding 
was requested, including, for each such project— 
‘‘(A) the total estimated project cost; and 
‘‘(B) the amount of funding requested; 
‘‘(3) a list of projects that were selected to re-
ceive funding under this section, including, for each 
such project— 
‘‘(A) the amount of funding requested; 
‘‘(B) the amount of funding granted; and 
‘‘(C) the source of the non-Federal share 
of cost of the project; and 
‘‘(4) the ranking and scoring of all projects for 
which funding was requested. 
‘‘(h) REPORTING REQUIREMENTS.— 
‘‘(1) STATE
REPORTS.—Not later than 180 
days after the last day of each fiscal year, a State 
shall submit to the Secretary a report that de-
scribes— 
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‘‘(A) the information required under sub-
section (g); 
‘‘(B) the organizations that were rep-
resented on the State’s selection panel; 
‘‘(C) the portion of the funds available to 
the State for the program that have been obli-
gated; and 
‘‘(D) the percentage of the funds available 
to the State for the program that were used for 
administrative expenses. 
‘‘(2) BIENNIAL
REPORT
TO
CONGRESS.—Not 
later than September 30, 2016, and biennially there-
after, the Secretary shall submit a consolidated re-
port on the program, including a review of the State 
reports submitted pursuant to paragraph (1), to— 
‘‘(A) the Committee on Banking, Housing, 
and Urban Affairs of the Senate; 
‘‘(B) 
the 
Committee 
on 
Commerce, 
Science, and Transportation of the Senate; 
‘‘(C) the Committee on Environment and 
Public Works of the Senate; and 
‘‘(D) the Committee on Transportation 
and Infrastructure of the House of Representa-
tives. 
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‘‘(3) AVAILABILITY.—The Secretary shall make 
the report submitted under paragraph (2) available 
on the public Internet Web site of the Department 
of Transportation. 
‘‘(i) SPECIAL RULE FOR STATES WITH COMPETITIVE 
AND SUBALLOCATED PROGRAMS.— 
‘‘(1) IN GENERAL.—The Secretary may permit 
a State to distribute funding described in subpara-
graphs (A), (B), (C), (D), or (E) of subsection 
(e)(1) through the mechanisms described in para-
graph (2) if the Secretary certifies that the State is 
distributing such funding in a manner that fulfills 
the purposes of this section. 
‘‘(2) DISTRIBUTION
MECHANISMS.—Distribu-
tion mechanisms that qualify under paragraph (1) 
include— 
‘‘(A) an open and competitive State pro-
gram that is substantially similar to the re-
quirements of this section; 
‘‘(B) direct suballocation to metropolitan 
areas of a majority of all funds— 
‘‘(i) apportioned to the State under 
sections 104(b)(1), 104(b)(2), 104(b)(3), 
and 104(b)(4); and 
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‘‘(ii) allocated to the State under sec-
tion 213(a)(1); and 
‘‘(C) a competitive State program or direct 
suballocation to metropolitan areas or direct re-
cipients of funds under section 5307 of title 49 
of more than 95 percent of the funds— 
‘‘(i) apportioned to the State under 
section 104(b)(1), 104(b)(2), 104(b)(3), or 
104(b)(4); or 
‘‘(ii) allocated to the State under sec-
tion 213(a)(1). 
‘‘(3) PUBLICATION
IN
FEDERAL
REGISTER.— 
Before making a certification under paragraph 
(1)(B), the Secretary shall— 
‘‘(A) publish in the Federal Register the 
Secretary’s intent to make the certification; 
‘‘(B) provide the public not fewer than 90 
days to comment on the proposed certification; 
and 
‘‘(C) take into consideration any comments 
received during the comment period. 
‘‘(4) NOTICE TO CONGRESS.—At least 15 days 
before making a certification under paragraph 
(1)(B), the Secretary shall submit a notice to the 
congressional committees referred to in subsection 
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(h)(2) and the members of the State’s congressional 
delegation that includes— 
‘‘(A) a notification of the Secretary’s in-
tent to make the certification; and 
‘‘(B) a justification for the proposed cer-
tification.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 1 of title 23, United States Code, is amended by insert-
ing after the item relating to section 104 the following: 
‘‘105. Innovation in surface transportation program.’’. 
Æ 
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