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transportation system capabilities into sur-
face transportation systems. 
‘‘(b) REPORTING.—The National ITS Program Plan 
shall be transmitted and biennially updated as part of the 
surface transportation research and technology development 
strategic plan developed under section 508(c). 
‘‘§ 526. National ITS architecture and standards 
‘‘(a) IN GENERAL.— 
‘‘(1) 
DEVELOPMENT, 
IMPLEMENTATION, 
AND 
MAINTENANCE.—In accordance with section 12(d) of 
the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783), the 
Secretary shall develop, implement, and maintain a 
national ITS architecture and supporting standards 
and protocols to promote the widespread use and eval-
uation of intelligent transportation system technology 
as a component of the surface transportation systems 
of the United States. 
‘‘(2) INTEROPERABILITY
AND
EFFICIENCY.—To 
the maximum extent practicable, the national ITS ar-
chitecture shall promote interoperability among, and 
efficiency of, intelligent transportation system tech-
nologies implemented throughout the United States. 
‘‘(3) USE OF STANDARDS DEVELOPMENT ORGANI-
ZATIONS.—In carrying out this section, the Secretary
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shall use the services of such standards development 
organizations as the Secretary determines to be ap-
propriate. 
‘‘(b) PROVISIONAL STANDARDS.— 
‘‘(1) IN GENERAL.—If the Secretary finds that 
the development or selection of an intelligent trans-
portation system standard jeopardizes the timely 
achievement of the objectives identified in subsection 
(a), the Secretary may establish a provisional stand-
ard— 
‘‘(A) after consultation with affected parties; 
and 
‘‘(B) by using, to the maximum extent prac-
ticable, the work product of appropriate stand-
ards development organizations. 
‘‘(2) CRITICAL STANDARDS.—If a standard iden-
tified by the Secretary as critical has not been adopt-
ed and published by the appropriate standards devel-
opment organization by the date of enactment of this 
subchapter, the Secretary shall establish a provisional 
standard— 
‘‘(A) after consultation with affected parties; 
and
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‘‘(B) by using, to the maximum extent prac-
ticable, the work product of appropriate stand-
ards development organizations. 
‘‘(3) PERIOD OF EFFECTIVENESS.—A provisional 
standard established under paragraph (1) or (2) 
shall— 
‘‘(A) be published in the Federal Register; 
and 
‘‘(B) remain in effect until such time as the 
appropriate standards development organization 
adopts and publishes a standard. 
‘‘(c) WAIVER OF REQUIREMENT TO ESTABLISH PROVI-
SIONAL CRITICAL STANDARD.— 
‘‘(1) IN GENERAL.—The Secretary may waive 
the requirement under subsection (b)(2) to establish a 
provisional standard if the Secretary determines that 
additional time would be productive in, or that estab-
lishment of a provisional standard would be counter-
productive to, the timely achievement of the objectives 
identified in subsection (a). 
‘‘(2) NOTICE.—The Secretary shall publish in 
the Federal Register a notice that describes— 
‘‘(A) each standard for which a waiver of 
the provisional standard requirement is granted 
under paragraph (1);
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‘‘(B) the reasons for and effects of granting 
the waiver; and 
‘‘(C) an estimate as to the date on which the 
standard is expected to be adopted through a 
process consistent with section 12(d) of the Na-
tional Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783). 
‘‘(3) WITHDRAWAL OF WAIVER.— 
‘‘(A) IN
GENERAL.—The Secretary may 
withdraw a waiver granted under paragraph (1) 
at any time. 
‘‘(B) NOTICE.—On withdrawal of a waiver, 
the Secretary shall publish in the Federal Reg-
ister a notice that describes— 
‘‘(i) each standard for which the waiv-
er has been withdrawn; and 
‘‘(ii) the reasons for withdrawing the 
waiver. 
‘‘(d) CONFORMITY WITH NATIONAL ITS ARCHITEC-
TURE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the Secretary shall ensure that in-
telligent transportation system projects carried out 
using funds made available from the Highway Trust 
Fund conform to the national ITS architecture, ap-
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plicable standards or provisional standards, and pro-
tocols developed under subsection (a). 
‘‘(2) DISCRETION
OF
SECRETARY.—The Sec-
retary may authorize exceptions to paragraph (1) for 
projects designed to achieve specific research objectives 
outlined in— 
‘‘(A) the National ITS Program Plan under 
section 525; or 
‘‘(B) the surface transportation research 
and technology development strategic plan devel-
oped under section 508(c). 
‘‘(3) EXCEPTIONS.—Paragraph (1) shall not 
apply to funds used for operation or maintenance of 
an intelligent transportation system in existence on 
the date of enactment of this subchapter. 
‘‘§ 527. Commercial vehicle information systems and 
networks deployment 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMERCIAL VEHICLE INFORMATION SYS-
TEMS AND NETWORKS.—The term ‘commercial vehicle 
information systems and networks’ means the infor-
mation systems and communications networks that 
provide the capability to— 
‘‘(A) improve the safety of commercial vehi-
cle operations;
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‘‘(B) increase the efficiency of regulatory in-
spection processes to reduce administrative bur-
dens by advancing technology to facilitate in-
spections and increase the effectiveness of enforce-
ment efforts; 
‘‘(C) advance electronic processing of reg-
istration information, driver licensing informa-
tion, fuel tax information, inspection and crash 
data, and other safety information; 
‘‘(D) enhance the safe passage of commercial 
vehicles across the United States and across 
international borders; and 
‘‘(E) promote the communication of infor-
mation 
among 
the 
States 
and 
encourage 
multistate cooperation and corridor development. 
‘‘(2) COMMERCIAL VEHICLE OPERATIONS.— 
‘‘(A) IN GENERAL.—The term ‘commercial 
vehicle operations’ means motor carrier oper-
ations and motor vehicle regulatory activities as-
sociated with the commercial movement of goods 
(including hazardous materials) and passengers. 
‘‘(B) INCLUSIONS.—The term ‘commercial 
vehicle operations’, with respect to the public sec-
tor, includes—
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‘‘(i) the issuance of operating creden-
tials; 
‘‘(ii) the administration of motor vehi-
cle and fuel taxes; and 
‘‘(iii) the administration of roadside 
safety and border crossing inspection and 
regulatory compliance operations. 
‘‘(3) CORE
DEPLOYMENT.—The term ‘core de-
ployment’ means the deployment of systems in a 
State necessary to provide the State with— 
‘‘(A) safety information exchange to— 
‘‘(i) electronically collect and transmit 
commercial vehicle and driver inspection 
data at a majority of inspection sites; 
‘‘(ii) connect to the Safety and Fitness 
Electronic Records system for access to— 
‘‘(I) interstate carrier and com-
mercial vehicle data; 
‘‘(II) summaries of past safety 
performance; and 
‘‘(III) commercial vehicle creden-
tials information; and 
‘‘(iii) exchange carrier data and com-
mercial vehicle safety and credentials infor-
mation within the State and connect to
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Safety and Fitness Electronic Records sys-
tem for access to interstate carrier and com-
mercial vehicle data; 
‘‘(B) interstate credentials administration 
to— 
‘‘(i)(I) perform end-to-end (including 
carrier application) jurisdiction applica-
tion processing, and credential issuance, of 
at least the International Registration Plan 
and International Fuel Tax Agreement cre-
dentials; and 
‘‘(II) extend the processing to other cre-
dentials, including intrastate, titling, over-
size or overweight requirements, carrier reg-
istration, and hazardous materials; 
‘‘(ii) connect to the International Reg-
istration Plan and International Fuel Tax 
Agreement clearinghouses; and 
‘‘(iii)(I) have at least 10 percent of the 
transaction volume handled electronically; 
and 
‘‘(II) have the capability to add more 
carriers and to extend to branch offices 
where applicable; and
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‘‘(C) roadside electronic screening to elec-
tronically screen transponder-equipped commer-
cial vehicles at a minimum of 1 fixed or mobile 
inspection site and to replicate the screening at 
other sites. 
‘‘(4) EXPANDED
DEPLOYMENT.—The term ‘ex-
panded deployment’ means the deployment of systems 
in a State that— 
‘‘(A) exceed the requirements of a core de-
ployment of commercial vehicle information sys-
tems and networks; 
‘‘(B) improve safety and the productivity of 
commercial vehicle operations; and 
‘‘(C) enhance transportation security. 
‘‘(b) PROGRAM.—The Secretary shall carry out a com-
mercial vehicle information systems and networks program 
to— 
‘‘(1) improve the safety and productivity of com-
mercial vehicles and drivers; and 
‘‘(2) reduce costs associated with commercial ve-
hicle operations and Federal and State commercial 
vehicle regulatory requirements. 
‘‘(c) PURPOSE.—It is the purpose of the program to 
advance the technological capability and promote the de-
ployment of intelligent transportation system applications
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for commercial vehicle operations, including commercial ve-
hicle, commercial driver, and carrier-specific information 
systems and networks. 
‘‘(d) CORE DEPLOYMENT GRANTS.— 
‘‘(1) IN
GENERAL.—The Secretary shall make 
grants to eligible States for the core deployment of 
commercial vehicle information systems and networks. 
‘‘(2) ELIGIBILITY.—To be eligible for a core de-
ployment grant under this subsection, a State shall— 
‘‘(A) have a commercial vehicle information 
systems and networks program plan and a top 
level system design approved by the Secretary; 
‘‘(B) certify to the Secretary that the com-
mercial vehicle information systems and net-
works deployment activities of the State (includ-
ing hardware procurement, software and system 
development, 
and 
infrastructure 
modifica-
tions)— 
‘‘(i) are consistent with the national 
intelligent transportation systems and com-
mercial vehicle information systems and 
networks architectures and available stand-
ards; and
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‘‘(B) REMAINING FUNDS.—An eligible State 
that has completed the core deployment of com-
mercial vehicle information systems and net-
works, or completed the deployment before core 
deployment grant funds are expended, may use 
the remaining core deployment grant funds for 
the expanded deployment of commercial vehicle 
information systems and networks in the State. 
‘‘(e) EXPANDED DEPLOYMENT GRANTS.— 
‘‘(1) IN GENERAL.—For each fiscal year, from 
the funds remaining after the Secretary has made 
core deployment grants under subsection (d), the Sec-
retary may make grants to each eligible State, on re-
quest, for the expanded deployment of commercial ve-
hicle information systems and networks. 
‘‘(2) ELIGIBILITY.—Each State that has com-
pleted the core deployment of commercial vehicle in-
formation systems and networks shall be eligible for 
an expanded deployment grant. 
‘‘(3) AMOUNT OF GRANTS.—Each fiscal year, the 
Secretary may distribute funds available for ex-
panded deployment grants equally among the eligible 
States in an amount that does not exceed $1,000,000 
for each State.
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‘‘(4) USE OF FUNDS.—A State may use funds 
from a grant under this subsection only for the ex-
panded deployment of commercial vehicle information 
systems and networks. 
‘‘(f) FEDERAL SHARE.—The Federal share of the cost 
of a project payable from funds made available to carry 
out this section shall be the share applicable under section 
120(b), as adjusted under subsection (d) of that section. 
‘‘(g) FUNDING.—Funds authorized to be appropriated 
to carry out this section shall be available for obligation 
in the same manner and to the same extent as if the funds 
were apportioned under chapter 1, except that the funds 
shall remain available until expended. 
‘‘§ 528. Research and development 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
comprehensive program of intelligent transportation system 
research, development, and operational tests of intelligent 
vehicles and intelligent infrastructure systems, and other 
similar activities that are necessary to carry out this sub-
chapter. 
‘‘(b) PRIORITY AREAS.—Under the program, the Sec-
retary shall give priority to funding projects that— 
‘‘(1) assist in the development of an inter-
connected national intelligent transportation system 
network that—
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‘‘(A) improves the reliability of the surface 
transportation system; 
‘‘(B) supports national security; 
‘‘(C) reduces, by at least 20 percent, the cost 
of manufacturing, deploying, and operating in-
telligent transportation systems network compo-
nents; 
‘‘(D) could assist in deployment of the 
Armed Forces in response to a crisis; and 
‘‘(E) improves response to, and evacuation 
of the public during, an emergency situation; 
‘‘(2) address traffic management, incident man-
agement, transit management, toll collection traveler 
information, or highway operations systems with 
goals of— 
‘‘(A) reducing metropolitan congestion by 5 
percent by 2010; 
‘‘(B) ensuring that a national, interoperable 
511 system, along with a national traffic infor-
mation system that includes a user-friendly, 
comprehensive website, is fully implemented for 
use by travelers throughout the United States by 
September 30, 2010; and 
‘‘(C)(i) improving incident management re-
sponse, particularly in rural areas, so that rural
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emergency response times are reduced by an av-
erage of 10 minutes; and 
‘‘(ii) subject to subsection (d), improving 
communication between emergency care pro-
viders and trauma centers; 
‘‘(3) address traffic management, incident man-
agement, transit management, toll collection, traveler 
information, or highway operations systems; 
‘‘(4) conduct operational tests of the integration 
of at least 3 crash-avoidance technologies in passenger 
vehicles; 
‘‘(5) incorporate human factors research, includ-
ing the science of the driving process; 
‘‘(6) facilitate the integration of intelligent infra-
structure, vehicle, and control technologies; 
‘‘(7) incorporate research on the impact of envi-
ronmental, weather, and natural conditions on intel-
ligent transportation systems, including the effects of 
cold climates; 
‘‘(8) as determined by the Secretary, will im-
prove the overall safety performance of vehicles and 
roadways, including the use of real-time setting of 
speed limits through the use of speed management 
technology; 
‘‘(9) examine—
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‘‘(A) the application to intelligent transpor-
tation systems of appropriately modified existing 
technologies from other industries; and 
‘‘(B) the development of new, more robust 
intelligent transportation systems technologies 
and instrumentation; 
‘‘(10) develop and test communication tech-
nologies that— 
‘‘(A) are based on an assessment of the 
needs of officers participating in a motor carrier 
safety program funded under section 31104 of 
title 49; 
‘‘(B) take into account the effectiveness and 
adequacy of available technology; 
‘‘(C) 
address 
systems 
integration, 
connectivity, and interoperability challenges; 
and 
‘‘(D) provide the means for officers partici-
pating in a motor carrier safety program funded 
under section 31104 of title 49 to directly assess, 
without an intermediary, current and accurate 
safety and regulatory information on motor car-
riers, commercial motor vehicles and drivers at 
roadside or mobile inspection facilities;
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‘‘(11) enhance intermodal use of intelligent 
transportation systems for diverse groups, including 
for emergency and health-related services; 
‘‘(12) improve sensing and wireless communica-
tions that provide real-time information regarding 
congestion and incidents; 
‘‘(13) develop and test high-accuracy, lane-level, 
real-time accessible digital map architectures that can 
be used by intelligent vehicles and intelligent infra-
structure elements to facilitate safety and crash avoid-
ance (including establishment of national standards 
for an open-architecture digital map of all public 
roads that is compatible with electronic 9-1-1 serv-
ices); 
‘‘(14) encourage the dual-use of intelligent trans-
portation system technologies (such as wireless com-
munications) for— 
‘‘(A) emergency services; 
‘‘(B) road pricing; and 
‘‘(C) local economic development; and 
‘‘(15) advance the use of intelligent transpor-
tation systems to facilitate high-performance trans-
portation systems, such as through— 
‘‘(A) congestion-pricing; 
‘‘(B) real-time facility management;
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‘‘(C) rapid-emergency response; and 
‘‘(D) just-in-time transit. 
‘‘(c) OPERATIONAL TESTS.—Operational tests con-
ducted under this section shall be designed for— 
‘‘(1) the collection of data to permit objective 
evaluation of the results of the tests; 
‘‘(2) the derivation of cost-benefit information 
that is useful to others contemplating deployment of 
similar systems; and 
‘‘(3) the development and implementation of 
standards. 
‘‘(d) FEDERAL SHARE.—The Federal share of the costs 
of operational tests under subsection (a) shall not exceed 
80 percent. 
‘‘§ 529. Use of funds 
‘‘(a) IN GENERAL.—For each fiscal year, not more 
than $5,000,000 of the funds made available to carry out 
this subchapter shall be used for intelligent transportation 
system outreach, public relations, displays, tours, and bro-
chures. 
‘‘(b) APPLICABILITY.—Subsection (a) shall not apply 
to intelligent transportation system training, scholarships, 
or the publication or distribution of research findings, tech-
nical guidance, or similar documents.’’.
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(b) CONFORMING AMENDMENT.—Title V of the Trans-
portation Equity Act for the 21st Century is amended by 
striking subtitle C (23 U.S.C. 502 note; 112 Stat. 452). 
TITLE III—PUBLIC 
TRANSPORTATION 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘Federal Public Trans-
portation Act of 2004’’. 
SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES 
CODE; UPDATED TERMINOLOGY. 
(a) AMENDMENTS TO TITLE 49.—Except as otherwise 
specifically 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 of law, the reference 
shall be considered to be made to a section or other provi-
sion of title 49, United States Code. 
(b) UPDATED TERMINOLOGY.—Except for sections 
5301(f), 5302(a)(7), and 5315, chapter 53, including the 
chapter analysis, is amended by striking ‘‘mass transpor-
tation’’ each place it appears and inserting ‘‘public trans-
portation’’. 
SEC. 3003. POLICIES, FINDINGS, AND PURPOSES. 
(a) DEVELOPMENT AND REVITALIZATION OF PUBLIC 
TRANSPORTATION SYSTEMS.—Section 5301(a) is amended 
to read as follows:
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‘‘(a) DEVELOPMENT AND REVITALIZATION OF PUBLIC 
TRANSPORTATION SYSTEMS.—It is in the economic interest 
of the United States to foster the development and revital-
ization of public transportation systems, which are coordi-
nated with other modes of transportation, that maximize 
the efficient, secure, and safe mobility of individuals and 
minimize environmental impacts.’’. 
(b) GENERAL
FINDINGS.—Section 5301(b)(1) is 
amended— 
(1) by striking ‘‘70 percent’’ and inserting ‘‘two- 
thirds’’; and 
(2) by striking ‘‘urban areas’’ and inserting ‘‘ur-
banized areas’’. 
(c) PRESERVING THE ENVIRONMENT.—Section 5301(e) 
is amended— 
(1) by striking ‘‘an urban’’ and inserting ‘‘a’’; 
and 
(2) by striking ‘‘under sections 5309 and 5310 of 
this title’’. 
(d) GENERAL PURPOSES.—Section 5301(f) is amend-
ed— 
(1) in paragraph (1)— 
(A) by striking ‘‘improved mass’’ and in-
serting ‘‘improved public’’; and
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(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘public 
transportation companies and private companies 
engaged in public transportation’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘urban mass’’ and inserting 
‘‘public’’; and 
(B) by striking ‘‘public and private mass 
transportation companies’’ and inserting ‘‘public 
transportation companies and private companies 
engaged in public transportation’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘urban mass’’ and inserting 
‘‘public’’; and 
(B) by striking ‘‘public or private mass 
transportation companies’’ and inserting ‘‘public 
transportation companies or private companies 
engaged in public transportation’’; and 
(4) in paragraph (5), by striking ‘‘urban mass’’ 
and inserting ‘‘public’’. 
SEC. 3004. DEFINITIONS. 
Section 5302(a) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (G)(i), by inserting 
‘‘including the intercity bus and intercity rail
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HR 3550 EAS 
portions of such facility or mall,’’ after ‘‘trans-
portation mall,’’; 
(B) in subparagraph (G)(ii), by inserting ‘‘, 
except for the intercity bus portion of intermodal 
facilities or malls,’’ after ‘‘commercial revenue- 
producing facility’’; 
(C) in subparagraph (H)— 
(i) by striking ‘‘and’’ after ‘‘innova-
tive’’ and inserting ‘‘or’’; and 
(ii) by striking ‘‘or’’ after the semi-
colon at the end; 
(D) in subparagraph (I), by striking the pe-
riod at the end and inserting a semicolon; and 
(E) by adding at the end the following: 
‘‘(J) crime prevention and security, includ-
ing— 
‘‘(i) projects to refine and develop secu-
rity and emergency response plans; or 
‘‘(ii) projects to detect chemical or bio-
logical agents in public transportation; 
‘‘(K) conducting emergency response 
drills with public transportation agencies 
and local first response agencies or security 
training for public transportation employ-
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ees, except for expenses relating to oper-
ations; or 
‘‘(L) establishing a debt service reserve, 
made up of deposits with a bondholder’s 
trustee, to ensure the timely payment of 
principal and interest on bonds issued by a 
grant recipient to finance an eligible project 
under this chapter.’’; 
(2) by striking paragraph (16); 
(3) by redesignating paragraphs (8) through (15) 
as paragraphs (9) through (16), respectively; 
(4) by striking paragraph (7) and inserting the 
following: 
‘‘(7) MASS TRANSPORTATION.—The term ‘mass 
transportation’ means public transportation. 
‘‘(8) MOBILITY MANAGEMENT.—The term ‘mobil-
ity management’ means a short-range planning or 
management activity or project that does not include 
operating public transportation services and— 
‘‘(A) improves coordination among public 
transportation providers, including private com-
panies engaged in public transportation; 
‘‘(B) addresses customer needs by tailoring 
public transportation services to specific market 
niches; or
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‘‘(C) manages public transportation de-
mand.’’; 
(5) by amending paragraph (11), as redesig-
nated, to read as follows: 
‘‘(11) 
PUBLIC
TRANSPORTATION.—The 
term 
‘public transportation’ means transportation by a 
conveyance that provides local regular and continuing 
general or special transportation to the public, but 
does not include school bus, charter bus, intercity bus 
or passenger rail, or sightseeing transportation.’’; 
(6) in subparagraphs (A) and (E) of paragraph 
(16), as redesignated, by striking ‘‘and’’ each place it 
appears and inserting ‘‘or’’; and 
(7) by amending paragraph (17) to read as fol-
lows: 
‘‘(17) URBANIZED AREA.—The term ‘urbanized 
area’ means an area encompassing a population of 
not less than 50,000 people that has been defined and 
designated in the most recent decennial census as an 
‘urbanized area’ by the Secretary of Commerce.’’. 
SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING. 
Section 5303 is amended to read as follows: 
‘‘§ 5303. Metropolitan transportation planning 
‘‘(a) DEFINITIONS.—As used in this section and in sec-
tion 5304, the following definitions shall apply:
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HR 3550 EAS 
‘‘(1) CONSULTATION.—A ‘consultation’ occurs 
when 1 party— 
‘‘(A) confers with another identified party 
in accordance with an established process; 
‘‘(B) prior to taking action, considers the 
views of the other identified party; and 
‘‘(C) periodically informs that party about 
action taken. 
‘‘(2) METROPOLITAN PLANNING AREA.—The term 
‘metropolitan planning area’ means the geographic 
area determined by agreement between the metropoli-
tan planning organization and the Governor under 
subsection (d). 
‘‘(3) 
METROPOLITAN
PLANNING
ORGANIZA-
TION.—The term ‘metropolitan planning organiza-
tion’ means the Policy Board of the organization des-
ignated under subsection (c). 
‘‘(4) NONMETROPOLITAN AREA.—The term ‘non-
metropolitan area’ means any geographic area out-
side all designated metropolitan planning areas. 
‘‘(5) NONMETROPOLITAN LOCAL OFFICIAL.—The 
term ‘nonmetropolitan local official’ means any elect-
ed or appointed official of general purpose local gov-
ernment located in a nonmetropolitan area who is re-
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sponsible for transportation services for such local 
government. 
‘‘(b) GENERAL REQUIREMENTS.— 
‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.— 
To accomplish the objectives described in section 
5301(a), each metropolitan planning organization, in 
cooperation with the State and public transportation 
operators, shall develop transportation plans and pro-
grams for metropolitan planning areas of the State in 
which it is located. 
‘‘(2) CONTENTS.—The plans and programs devel-
oped under paragraph (1) for each metropolitan plan-
ning area shall provide for the development and inte-
grated management and operation of transportation 
systems and facilities (including pedestrian walkways 
and bicycle transportation facilities) that will func-
tion as an intermodal transportation system for the 
metropolitan planning area and as an integral part 
of an intermodal transportation system for the State 
and the United States. 
‘‘(3) PROCESS OF DEVELOPMENT.—The process 
for developing the plans and programs shall provide 
for consideration of all modes of transportation and 
shall be continuing, cooperative, and comprehensive to
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the degree appropriate, based on the complexity of the 
transportation problems to be addressed. 
‘‘(4) PLANNING AND PROJECT DEVELOPMENT.— 
The metropolitan planning organization, the State 
Department of Transportation, and the appropriate 
public transportation provider shall agree upon the 
approaches that will be used to evaluate alternatives 
and identify transportation improvements that ad-
dress the most complex problems and pressing trans-
portation needs in the metropolitan area. 
‘‘(c) DESIGNATION OF METROPOLITAN PLANNING OR-
GANIZATIONS.— 
‘‘(1) IN GENERAL.—To carry out the transpor-
tation planning process under this section, a metro-
politan planning organization shall be designated for 
each urbanized area— 
‘‘(A) by agreement between the Governor 
and units of general purpose local government 
that combined represent not less than 75 percent 
of the affected population (including the incor-
porated city or cities named by the Bureau of 
the Census in designating the urbanized area); or 
‘‘(B) in accordance with procedures estab-
lished by applicable State or local law.
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‘‘(2) STRUCTURE.—Each metropolitan planning 
organization designated under paragraph (1) that 
serves an area identified as a transportation manage-
ment area shall consist of— 
‘‘(A) local elected officials; 
‘‘(B) officials of public agencies that admin-
ister or operate major modes of transportation in 
the metropolitan area; and 
‘‘(C) appropriate State officials. 
‘‘(3) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
to interfere with the authority, under any State law 
in effect on December 18, 1991, of a public agency 
with multimodal transportation responsibilities— 
‘‘(A) to develop plans and programs for 
adoption by a metropolitan planning organiza-
tion; and 
‘‘(B) to develop long-range capital plans, 
coordinate transit services and projects, and 
carry out other activities pursuant to State law. 
‘‘(4) CONTINUING
DESIGNATION.—The designa-
tion of a metropolitan planning organization under 
this subsection or any other provision of law shall re-
main in effect until the metropolitan planning orga-
nization is redesignated under paragraph (5).
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HR 3550 EAS 
‘‘(5) REDESIGNATION
PROCEDURES.—A metro-
politan planning organization may be redesignated 
by agreement between the Governor and units of gen-
eral purpose local government that combined rep-
resent not less than 75 percent of the existing plan-
ning area population (including the incorporated city 
or cities named by the Bureau of the Census in desig-
nating the urbanized area) as appropriate to carry 
out this section. 
‘‘(6) DESIGNATION OF MORE THAN 1 METROPOLI-
TAN PLANNING ORGANIZATION.—More than 1 metro-
politan planning organization may be designated 
within an existing metropolitan planning area only 
if the Governor and the existing metropolitan plan-
ning organization determine that the size and com-
plexity of the existing metropolitan planning area 
make designation of more than 1 metropolitan plan-
ning organization for the area appropriate. 
‘‘(d) METROPOLITAN PLANNING AREA BOUNDARIES.— 
‘‘(1) IN GENERAL.—For the purposes of this sec-
tion, the boundaries of a metropolitan planning area 
shall be determined by agreement between the metro-
politan planning organization and the Governor. 
‘‘(2) INCLUDED AREA.—Each metropolitan plan-
ning area—
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‘‘(A) shall encompass at least the existing 
urbanized area and the contiguous area expected 
to become urbanized within a 20-year forecast 
period for the transportation plan; and 
‘‘(B) may encompass the entire metropoli-
tan statistical area or consolidated metropolitan 
statistical area, as defined by the Office of Man-
agement and Budget. 
‘‘(3) IDENTIFICATION OF NEW URBANIZED AREAS 
WITHIN EXISTING PLANNING AREA BOUNDARIES.—The 
designation by the Bureau of the Census of new ur-
banized areas within an existing metropolitan plan-
ning area shall not require the redesignation of the 
existing metropolitan planning organization. 
‘‘(4) EXISTING METROPOLITAN PLANNING AREAS 
IN
NONATTAINMENT.—Notwithstanding 
paragraph 
(2), in the case of an urbanized area designated as a 
nonattainment area for ozone or carbon monoxide 
under the Clean Air Act (42 U.S.C. 7401 et seq.), the 
boundaries of the metropolitan planning area in ex-
istence as of the date of enactment of the Federal Pub-
lic Transportation Act of 2004 shall be retained, ex-
cept that the boundaries may be adjusted by agree-
ment of the Governor and affected metropolitan plan-
ning organizations in accordance with paragraph (5).
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‘‘(5) NEW METROPOLITAN PLANNING AREAS IN 
NONATTAINMENT.—If an urbanized area is designated 
after the date of enactment of this paragraph in a 
nonattainment area for ozone or carbon monoxide, the 
boundaries of the metropolitan planning area— 
‘‘(A) shall be established in accordance with 
subsection (c)(1); 
‘‘(B) shall encompass the areas described in 
paragraph (2)(A); 
‘‘(C) may encompass the areas described in 
paragraph (2)(B); and 
‘‘(D) may address any nonattainment iden-
tified under the Clean Air Act (42 U.S.C. 7401 
et seq.) for ozone or carbon monoxide. 
‘‘(e) COORDINATION IN MULTISTATE AREAS.— 
‘‘(1) IN GENERAL.—The Secretary shall encour-
age each Governor with responsibility for a portion of 
a multistate metropolitan area and the appropriate 
metropolitan planning organizations to provide co-
ordinated transportation planning for the entire met-
ropolitan area. 
‘‘(2) INTERSTATE
COMPACTS.—States are au-
thorized— 
‘‘(A) to enter into agreements or compacts 
with other States, which agreements or compacts
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are not in conflict with any law of the United 
States, for cooperative efforts and mutual assist-
ance in support of activities authorized under 
this section as the activities pertain to interstate 
areas and localities within the States; and 
‘‘(B) to establish such agencies, joint or oth-
erwise, as the States may determine desirable for 
making the agreements and compacts effective. 
‘‘(3) LAKE TAHOE REGION.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘Lake Tahoe region’ has the meaning given 
the term ‘region’ in subdivision (a) of article II 
of the Tahoe Regional Planning Compact, as set 
forth in the first section of Public Law 96–551 
(94 Stat. 3234). 
‘‘(B) TRANSPORTATION
PLANNING
PROC-
ESS.—The Secretary shall— 
‘‘(i) establish with the Federal land 
management agencies that have jurisdiction 
over land in the Lake Tahoe region a trans-
portation planning process for the region; 
and 
‘‘(ii) coordinate the transportation 
planning process with the planning process
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required of State and local governments 
under this section and section 5304. 
‘‘(C) INTERSTATE COMPACT.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii) and notwithstanding subsection (c), to 
carry out the transportation planning proc-
ess required by this section, California and 
Nevada may designate a metropolitan plan-
ning organization for the Lake Tahoe re-
gion, by agreement between the Governor of 
the State of California, the Governor of the 
State of Nevada, and units of general pur-
pose local government that combined rep-
resent not less than 75 percent of the af-
fected population (including the incor-
porated city or cities named by the Bureau 
of the Census in designating the urbanized 
area), or in accordance with procedures es-
tablished by applicable State or local law. 
‘‘(ii) INVOLVEMENT OF FEDERAL LAND 
MANAGEMENT AGENCIES.— 
‘‘(I) REPRESENTATION.—The pol-
icy board of a metropolitan planning 
organization designated under clause 
(i) shall include a representative of
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each Federal land management agency 
that has jurisdiction over land in the 
Lake Tahoe region. 
‘‘(II) FUNDING.—In addition to 
funds made available to the metropoli-
tan planning organization under other 
provisions of title 23 and this chapter, 
not more than 1 percent of the funds 
allocated under section 202 of title 23 
may be used to carry out the transpor-
tation planning process for the Lake 
Tahoe region under this subparagraph. 
‘‘(D) ACTIVITIES.—Highway projects in-
cluded in transportation plans developed under 
this paragraph— 
‘‘(i) shall be selected for funding in a 
manner that facilitates the participation of 
the Federal land management agencies that 
have jurisdiction over land in the Lake 
Tahoe region; and 
‘‘(ii) may, in accordance with chapter 
2 of title 23, be funded using funds allocated 
under section 202 of title 23. 
‘‘(f) COORDINATION OF METROPOLITAN PLANNING OR-
GANIZATIONS.—
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‘‘(1) NONATTAINMENT AREAS.—If more than 1 
metropolitan planning organization has authority 
within a metropolitan area or an area which is des-
ignated as a nonattainment area for ozone or carbon 
monoxide under the Clean Air Act (42 U.S.C. 7401 
et seq.), each metropolitan planning organization 
shall consult with the other metropolitan planning or-
ganizations designated for such area and the State in 
the coordination of plans required by this section. 
‘‘(2) TRANSPORTATION IMPROVEMENTS LOCATED 
IN MULTIPLE METROPOLITAN PLANNING AREAS.—If a 
transportation improvement funded from the highway 
trust fund is located within the boundaries of more 
than 1 metropolitan planning area, the metropolitan 
planning organizations shall coordinate plans regard-
ing the transportation improvement. 
‘‘(3) INTERREGIONAL AND INTERSTATE PROJECT 
IMPACTS.—Planning for National Highway System, 
commuter rail projects, or other projects with substan-
tial impacts outside a single metropolitan planning 
area or State shall be coordinated directly with the 
affected, contiguous, metropolitan planning organiza-
tions and States. 
‘‘(4) COORDINATION
WITH
OTHER
PLANNING 
PROCESSES.—
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‘‘(A) IN GENERAL.—The Secretary shall en-
courage each metropolitan planning organiza-
tion to coordinate its planning process, to the 
maximum extent practicable, with those officials 
responsible for other types of planning activities 
that are affected by transportation, including 
State and local land use planning, economic de-
velopment, environmental protection, airport op-
erations, housing, and freight. 
‘‘(B) OTHER CONSIDERATIONS.—The metro-
politan planning process shall develop transpor-
tation plans with due consideration of, and in 
coordination with, other related planning activi-
ties within the metropolitan area. This should 
include the design and delivery of transportation 
services within the metropolitan area that are 
provided by— 
‘‘(i) recipients of assistance under this 
chapter; 
‘‘(ii) governmental agencies and non-
profit organizations (including representa-
tives of the agencies and organizations) that 
receive Federal assistance from a source 
other than the Department of Transpor-
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HR 3550 EAS 
tation to provide nonemergency transpor-
tation services; and 
‘‘(iii) recipients of assistance under 
section 204 of title 23. 
‘‘(g) SCOPE OF PLANNING PROCESS.— 
‘‘(1) IN GENERAL.—The goals and objectives de-
veloped through the metropolitan planning process for 
a metropolitan planning area under this section shall 
address, in relation to the performance of the metro-
politan area transportation systems— 
‘‘(A) supporting the economic vitality of the 
metropolitan area, especially by enabling global 
competitiveness, productivity, and efficiency, in-
cluding through services provided by public and 
private operators; 
‘‘(B) increasing the safety of the transpor-
tation system for motorized and nonmotorized 
users; 
‘‘(C) increasing the security of the transpor-
tation system for motorized and nonmotorized 
users; 
‘‘(D) increasing the accessibility and mobil-
ity of people and for freight, including through 
services provided by public and private opera-
tors;
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‘‘(E) protecting and enhancing the environ-
ment (including the protection of habitat, water 
quality, and agricultural and forest land, while 
minimizing invasive species), promoting energy 
conservation, and promoting consistency between 
transportation improvements and State and 
local land use planning and economic develop-
ment patterns (including minimizing adverse 
health effects from mobile source air pollution 
and promoting the linkage of the transportation 
and development goals of the metropolitan area); 
‘‘(F) 
enhancing 
the 
integration 
and 
connectivity of the transportation system, across 
and between modes, for people and freight, in-
cluding through services provided by public and 
private operators; 
‘‘(G) promoting efficient system manage-
ment and operation; and 
‘‘(H) emphasizing the preservation and effi-
cient use of the existing transportation system, 
including services provided by public and pri-
vate operators. 
‘‘(2) SELECTION OF FACTORS.—After soliciting 
and considering any relevant public comments, the 
metropolitan planning organization shall determine
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which of the factors described in paragraph (1) are 
most appropriate to consider. 
‘‘(3) FAILURE TO CONSIDER FACTORS.—The fail-
ure to consider any factor specified in paragraph (1) 
shall not be reviewable by any court under title 23, 
this title, subchapter II of chapter 5 of title 5, or 
chapter 7 of title 5 in any matter affecting a trans-
portation plan, a transportation improvement plan, a 
project or strategy, or the certification of a planning 
process. 
‘‘(h) DEVELOPMENT OF TRANSPORTATION PLAN.— 
‘‘(1) IN GENERAL.— 
‘‘(A) REQUIREMENT.—Each metropolitan 
planning organization shall develop a transpor-
tation plan for its metropolitan planning area 
in accordance with this subsection, and update 
such plan— 
‘‘(i) not less frequently than once every 
4 years in areas designated as nonattain-
ment, as defined in section 107(d) of the 
Clean Air Act (42 U.S.C. 7407(d)), and in 
areas that were nonattainment that have 
been redesignated as attainment, in accord-
ance with paragraph (3) of such section, 
with a maintenance plan under section
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175A of the Clean Air Act (42 U.S.C. 
7505a); or 
‘‘(ii) not less frequently than once 
every 5 years in areas designated as attain-
ment, as defined in section 107(d) of the 
Clean Air Act. 
‘‘(B) COORDINATION
FACTORS.—In devel-
oping the transportation plan under this section, 
each metropolitan planning organization shall 
consider the factors described in subsection (f) 
over a 20-year forecast period. 
‘‘(C) FINANCIAL ESTIMATES.—For the pur-
pose of developing the transportation plan, the 
metropolitan planning organization, transit op-
erator, and State shall cooperatively develop esti-
mates of funds that will be available to support 
plan implementation. 
‘‘(2) MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—A transportation plan 
under this subsection shall include a discussion 
of— 
‘‘(i) 
types 
of 
potential 
habitat, 
hydrological, and environmental mitigation 
activities that may assist in compensating
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for loss of habitat, wetland, and other envi-
ronmental functions; and 
‘‘(ii) potential areas to carry out these 
activities, including a discussion of areas 
that may have the greatest potential to re-
store and maintain the habitat types and 
hydrological or environmental functions af-
fected by the plan. 
‘‘(B) CONSULTATION.—The discussion de-
scribed in subparagraph (A) shall be developed 
in consultation with Federal and State tribal 
wildlife, land management, and regulatory agen-
cies. 
‘‘(3) CONTENTS.— A transportation plan under 
this subsection shall be in a form that the Secretary 
determines to be appropriate and shall contain— 
‘‘(A) an identification of transportation fa-
cilities, including major roadways, transit, 
multimodal and intermodal facilities, intermodal 
connectors, and other relevant facilities identified 
by the metropolitan planning organization, 
which should function as an integrated metro-
politan transportation system, emphasizing those 
facilities that serve important national and re-
gional transportation functions;
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‘‘(B) a financial plan that— 
‘‘(i) demonstrates how the adopted 
transportation plan can be implemented; 
‘‘(ii) indicates resources from public 
and private sources that are reasonably ex-
pected to be made available to carry out the 
plan; 
‘‘(iii) recommends any additional fi-
nancing strategies for needed projects and 
programs; and 
‘‘(iv) may include, for illustrative pur-
poses, additional projects that would be in-
cluded in the adopted transportation plan if 
approved by the Secretary and reasonable 
additional resources beyond those identified 
in the financial plan were available; 
‘‘(C) operational and management strate-
gies to improve the performance of existing 
transportation facilities to relieve vehicular con-
gestion and maximize the safety and mobility of 
people and goods; 
‘‘(D) capital investment and other strategies 
to preserve the existing metropolitan transpor-
tation infrastructure and provide for multimodal
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capacity increases based on regional priorities 
and needs; and 
‘‘(E) proposed transportation and transit 
enhancement activities. 
‘‘(4) CONSULTATION.— 
‘‘(A) IN GENERAL.—In each metropolitan 
area, the metropolitan planning organization 
shall consult, as appropriate, with State and 
local agencies responsible for land use manage-
ment, natural resources, environmental protec-
tion, conservation, and historic preservation con-
cerning the development of a long-range trans-
portation plan. 
‘‘(B) ISSUES.—The consultation shall in-
volve— 
‘‘(i) 
comparison 
of 
transportation 
plans with State conservation plans or with 
maps, if available; 
‘‘(ii) comparison of transportation 
plans to inventories of natural or historic 
resources, if available; or 
‘‘(iii) consideration of areas where 
wildlife crossing structures may be needed 
to ensure connectivity between wildlife habi-
tat linkage areas.
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‘‘(5) COORDINATION WITH CLEAN AIR ACT AGEN-
CIES.—In metropolitan areas in nonattainment for 
ozone or carbon monoxide under the Clean Air Act 
(42 U.S.C. 7401 et seq.), the metropolitan planning 
organization shall coordinate the development of a 
transportation plan with the process for development 
of the transportation control measures of the State 
implementation plan required by the Clean Air Act. 
‘‘(6) 
APPROVAL
OF
THE
TRANSPORTATION 
PLAN.—Each transportation plan prepared by a met-
ropolitan planning organization shall be— 
‘‘(A) approved by the metropolitan plan-
ning organization; and 
‘‘(B) submitted to the Governor for informa-
tion purposes at such time and in such manner 
as the Secretary may reasonably require. 
‘‘(i) PARTICIPATION BY INTERESTED PARTIES.— 
‘‘(1) DEVELOPMENT OF PARTICIPATION PLAN.— 
Not less frequently than every 4 years, each metropoli-
tan planning organization shall develop and adopt a 
plan for participation in the process for developing 
the metropolitan transportation plan and programs 
by— 
‘‘(A) citizens; 
‘‘(B) affected public agencies;
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‘‘(C) representatives of public transpor-
tation employees; 
‘‘(D) freight shippers; 
‘‘(E) providers of freight transportation 
services; 
‘‘(F) private providers of transportation; 
‘‘(G) representatives of users of public tran-
sit; 
‘‘(H) representatives of users of pedestrian 
walkways and bicycle transportation facilities; 
and 
‘‘(I) other interested parties. 
‘‘(2) CONTENTS OF PARTICIPATION PLAN.—The 
participation plan— 
‘‘(A) shall be developed in a manner the 
Secretary determines to be appropriate; 
‘‘(B) shall be developed in consultation with 
all interested parties; and 
‘‘(C) shall provide that all interested parties 
have reasonable opportunities to comment on— 
‘‘(i) the process for developing the 
transportation plan; and 
‘‘(ii) the contents of the transportation 
plan.
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‘‘(3) METHODS.—The participation plan shall 
provide that the metropolitan planning organization 
shall, to the maximum extent practicable— 
‘‘(A) hold any public meetings at convenient 
and accessible locations and times; 
‘‘(B) employ visualization techniques to de-
scribe plans; and 
‘‘(C) make public information available in 
electronically accessible format and means, such 
as the World Wide Web. 
‘‘(4) CERTIFICATION.—Before the metropolitan 
planning organizations approve a transportation 
plan or program, each metropolitan planning organi-
zation shall certify that it has complied with the re-
quirements of the participation plan it has adopted. 
‘‘(j) TRANSPORTATION IMPROVEMENT PROGRAM.— 
‘‘(1) DEVELOPMENT AND UPDATE.— 
‘‘(A) IN GENERAL.—In cooperation with the 
State and affected operators of public transpor-
tation, a metropolitan planning organization 
designated for a metropolitan planning area 
shall develop a transportation improvement pro-
gram for the area. 
‘‘(B) PARTICIPATION.—In developing the 
transportation improvement program, the metro-
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politan planning organization, in cooperation 
with the Governor and any affected operator of 
public transportation, shall provide an oppor-
tunity for participation by interested parties in 
the development of the program, in accordance 
with subsection (i). 
‘‘(C) UPDATES.—The transportation im-
provement program shall be updated not less 
than once every 4 years and shall be approved 
by the metropolitan planning organization and 
the Governor. 
‘‘(D) FUNDING
ESTIMATE.—In developing 
the transportation improvement program, the 
metropolitan planning organization, operators of 
public transportation, and the State shall coop-
eratively develop estimates of funds that are rea-
sonably expected to be available to support pro-
gram implementation. 
‘‘(E) 
PROJECT
ADVANCEMENT.—Projects 
listed in the transportation improvement pro-
gram may be selected for advancement consistent 
with the project selection requirements. 
‘‘(F) MAJOR AMENDMENTS.—Major amend-
ments to the list described in subparagraph (E), 
including the addition, deletion, or concept and
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scope change of a regionally significant project, 
may not be advanced without— 
‘‘(i) appropriate public involvement; 
‘‘(ii) financial planning; 
‘‘(iii) transportation conformity anal-
yses; and 
‘‘(iv) a finding by the Federal High-
way Administration and Federal Transit 
Administration that the amended plan was 
produced in a manner consistent with this 
section. 
‘‘(2) INCLUDED PROJECTS.— 
‘‘(A) PROJECTS
UNDER
CHAPTER
OF 
TITLE 23 AND THIS CHAPTER.—A transportation 
improvement program developed under this sec-
tion for a metropolitan area shall include the 
projects and strategies within the metropolitan 
area that are proposed for funding under chapter 
1 of title 23 and this chapter. 
‘‘(B) PROJECTS
UNDER
CHAPTER
OF 
TITLE 23.— 
‘‘(i) 
REGIONALLY
SIGNIFICANT 
PROJECTS.—Regionally significant projects 
proposed for funding under chapter 2 of 
title 23 shall be identified individually in
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the metropolitan transportation improve-
ment program. 
‘‘(ii) OTHER PROJECTS.—Projects pro-
posed for funding under chapter 2 of title 
23 that are not regionally significant shall 
be grouped in 1 line item or identified indi-
vidually in the metropolitan transportation 
improvement program. 
‘‘(3) SELECTION OF PROJECTS.— 
‘‘(A) IN
GENERAL.—Except as otherwise 
provided under subsection (k)(4), the selection of 
federally funded projects in metropolitan plan-
ning areas shall be carried out, from the ap-
proved transportation plan— 
‘‘(i) by the State, in the case of projects 
under chapter 1 of title 23 or section 5308, 
5310, 5311, or 5317 of this title; 
‘‘(ii) by the designated recipient, in the 
case of projects under section 5307; and 
‘‘(iii) in cooperation with the metro-
politan planning organization. 
‘‘(B) MODIFICATIONS
TO
PROJECT
PRI-
ORITY.—Notwithstanding any other provision of 
law, a project may be advanced from the trans-
portation improvement program in place of an-
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other project in the same transportation im-
provement program without the approval of the 
Secretary. 
‘‘(4) PUBLICATION REQUIREMENTS.— 
‘‘(A) PUBLICATION OF TRANSPORTATION IM-
PROVEMENT
PROGRAM.—A transportation im-
provement program involving Federal participa-
tion shall be published or otherwise made readily 
available by the metropolitan planning organiza-
tion for public review, including, to the max-
imum extent practicable, in electronically acces-
sible formats and means, such as the World Wide 
Web. 
‘‘(B) PUBLICATION OF ANNUAL LISTINGS OF 
PROJECTS.—An annual listing of projects, in-
cluding investments in pedestrian walkways and 
bicycle transportation facilities, for which Fed-
eral funds have been obligated in the preceding 
4 years shall be published or otherwise made 
available for public review by the cooperative ef-
fort of the State, transit operator, and the metro-
politan planning organization. This listing shall 
be consistent with the funding categories identi-
fied in the transportation improvement program.
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‘‘(C) RULEMAKING.—Not later than 120 
days after the date of enactment of the Federal 
Public Transportation Act of 2004, the Secretary 
shall issue regulations specifying— 
‘‘(i) the types of data to be included in 
the list described in subparagraph (B), in-
cluding— 
‘‘(I) the name, type, purpose, and 
geocoded location of each project; 
‘‘(II) the Federal, State, and local 
identification numbers assigned to each 
project; 
‘‘(III) amounts obligated and ex-
pended on each project, sorted by fund-
ing source and transportation mode, 
and the date on which each obligation 
was made; and 
‘‘(IV) the status of each project; 
and 
‘‘(ii) the media through which the list 
described in subparagraph (B) will be made 
available to the public, including written 
and visual components for each of the 
projects listed. 
‘‘(k) TRANSPORTATION MANAGEMENT AREAS.—
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‘‘(1) REQUIRED IDENTIFICATION.—The Secretary 
shall identify each urbanized area with a population 
of more than 200,000 individuals as a transportation 
management area. 
‘‘(2) TRANSPORTATION PLANS AND PROGRAMS.— 
Transportation plans and programs for a metropoli-
tan planning area serving a transportation manage-
ment area shall be based on a continuing and com-
prehensive transportation planning process carried 
out by the metropolitan planning organization in co-
operation with the State and transit operators. 
‘‘(3) CONGESTION MANAGEMENT SYSTEM.— 
‘‘(A) IN
GENERAL.—The transportation 
planning process under this section shall address 
congestion management through a process that 
provides for effective management and operation, 
based on a cooperatively developed and imple-
mented metropolitan-wide strategy, of new and 
existing transportation facilities eligible for 
funding under title 23 and this chapter through 
the use of travel demand reduction and oper-
ational management strategies. 
‘‘(B) PHASE-IN SCHEDULE.—The Secretary 
shall establish a phase-in schedule that provides 
for full compliance with the requirements of this
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section not later than 1 year after the identifica-
tion of transportation management areas under 
paragraph (1). 
‘‘(4) SELECTION OF PROJECTS.— 
‘‘(A) IN
GENERAL.—All federally funded 
projects carried out within the boundaries of a 
metropolitan planning area serving a transpor-
tation management area under title 23 (except 
for projects carried out on the National Highway 
System and projects carried out under the bridge 
program or the interstate maintenance program) 
or under this chapter shall be selected for imple-
mentation from the approved transportation im-
provement program by the metropolitan plan-
ning organization designated for the area in con-
sultation with the State and any affected public 
transit operator. 
‘‘(B) 
NATIONAL
HIGHWAY
SYSTEM 
PROJECTS.—Projects on the National Highway 
System carried out within the boundaries of a 
metropolitan planning area serving a transpor-
tation management area and projects carried out 
within such boundaries under the bridge pro-
gram or the interstate maintenance program 
under title 23 shall be selected for implementa-
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HR 3550 EAS 
tion from the approved transportation improve-
ment program by the State in cooperation with 
the metropolitan planning organization des-
ignated for the area. 
‘‘(5) CERTIFICATION.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) ensure that the metropolitan plan-
ning process of a metropolitan planning or-
ganization serving a transportation man-
agement area is being carried out in ac-
cordance with Federal law; and 
‘‘(ii) subject to subparagraph (B), cer-
tify, not less frequently than once every 4 
years in nonattainment and maintenance 
areas (as defined under the Clean Air Act) 
and not less frequently than once every 5 
years in attainment areas (as defined under 
such Act), that the requirements of this 
paragraph are met with respect to the met-
ropolitan planning process. 
‘‘(B) 
REQUIREMENTS
FOR
CERTIFI-
CATION.—The Secretary may make the certifi-
cation under subparagraph (A) if— 
‘‘(i) the transportation planning proc-
ess complies with the requirements of this
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section and all other applicable Federal 
law; and 
‘‘(ii) a transportation plan and a 
transportation improvement program for 
the metropolitan planning area have been 
approved by the metropolitan planning or-
ganization and the Governor. 
‘‘(C) PENALTY FOR FAILING TO CERTIFY.— 
‘‘(i) WITHHOLDING PROJECT FUNDS.— 
If the metropolitan planning process of a 
metropolitan planning organization serving 
a transportation management area is not 
certified, the Secretary may withhold any 
funds otherwise available to the metropoli-
tan planning area for projects funded under 
title 23 and this chapter. 
‘‘(ii) 
RESTORATION
OF
WITHHELD 
FUNDS.—Any funds withheld under clause 
(i) shall be restored to the metropolitan 
planning area when the metropolitan plan-
ning process is certified by the Secretary. 
‘‘(D) REVIEW OF CERTIFICATION.—In mak-
ing a certification under this paragraph, the 
Secretary shall provide for public involvement
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appropriate to the metropolitan area under re-
view. 
‘‘(l) ABBREVIATED PLANS FOR CERTAIN AREAS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), in 
the case of a metropolitan area not designated as a 
transportation management area under this section, 
the Secretary may provide for the development of an 
abbreviated transportation plan and transportation 
improvement program for the metropolitan planning 
area that the Secretary determines is appropriate to 
achieve the purposes of this section, after considering 
the complexity of transportation problems in the area. 
‘‘(2) NONATTAINMENT
AREAS.—The Secretary 
may not permit abbreviated plans for a metropolitan 
area that is in nonattainment for ozone or carbon 
monoxide under the Clean Air Act (42 U.S.C. 7401 
et seq.). 
‘‘(m) ADDITIONAL REQUIREMENTS FOR CERTAIN NON-
ATTAINMENT AREAS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provisions of title 23 or this chapter, Federal funds 
may not be advanced for transportation management 
areas classified as nonattainment for ozone or carbon 
monoxide pursuant to the Clean Air Act (42 U.S.C. 
7401 et seq.) for any highway project that will result
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in a significant increase in carrying capacity for sin-
gle-occupant vehicles unless the project is addressed 
through a congestion management process. 
‘‘(2) APPLICABILITY.—This subsection applies to 
any nonattainment area within the metropolitan 
planning area boundaries determined under sub-
section (d). 
‘‘(n) LIMITATION ON STATUTORY CONSTRUCTION.— 
Nothing in this section shall be construed to confer on a 
metropolitan planning organization the authority to im-
pose legal requirements on any transportation facility, pro-
vider, or project that is not eligible under title 23 or this 
chapter. 
‘‘(o) AVAILABILITY OF FUNDS.—Funds set aside under 
section 104(f) of title 23 or section 5308 of this title shall 
be available to carry out this section. 
‘‘(p) CONTINUATION
OF CURRENT REVIEW PRAC-
TICE.—Any decision by the Secretary concerning a plan or 
program described in this section shall not be considered 
to be a Federal action subject to review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.).’’. 
SEC. 3006. STATEWIDE TRANSPORTATION PLANNING. 
Section 5304 is amended to read as follows:
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‘‘§ 5304. Statewide transportation planning 
‘‘(a) GENERAL REQUIREMENTS.— 
‘‘(1) DEVELOPMENT OF PLANS AND PROGRAMS.— 
To support the policies described in section 5301(a), 
each State shall develop a statewide transportation 
plan (referred to in this section as a ‘‘Plan’’) and a 
statewide transportation improvement program (re-
ferred to in this section as a ‘‘Program’’) for all areas 
of the State subject to section 5303. 
‘‘(2) CONTENTS.—The Plan and the Program de-
veloped for each State shall provide for the develop-
ment and integrated management and operation of 
transportation systems and facilities (including pe-
destrian walkways and bicycle transportation facili-
ties) that will function as an intermodal transpor-
tation system for the State and an integral part of 
an intermodal transportation system for the United 
States. 
‘‘(3) PROCESS OF DEVELOPMENT.—The process 
for developing the Plan and the Program shall— 
‘‘(A) provide for the consideration of all 
modes of transportation and the policies de-
scribed in section 5301(a); and 
‘‘(B) be continuing, cooperative, and com-
prehensive to the degree appropriate, based on
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the complexity of the transportation problems to 
be addressed. 
‘‘(b) COORDINATION WITH METROPOLITAN PLANNING; 
STATE IMPLEMENTATION PLAN.—Each State shall— 
‘‘(1) coordinate planning under this section 
with— 
‘‘(A) the transportation planning activities 
under section 5303 for metropolitan areas of the 
State; and 
‘‘(B) other related statewide planning ac-
tivities, including trade and economic develop-
ment and related multistate planning efforts; 
and 
‘‘(2) develop the transportation portion of the 
State implementation plan, as required by the Clean 
Air Act (42 U.S.C. 7401 et seq.). 
‘‘(c) INTERSTATE AGREEMENTS.—States may enter 
into agreements or compacts with other States for coopera-
tive efforts and mutual assistance in support of activities 
authorized under this section related to interstate areas and 
localities in the States and establishing authorities the 
States consider desirable for making the agreements and 
compacts effective. 
‘‘(d) SCOPE OF PLANNING PROCESS.—
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‘‘(1) IN GENERAL.—Each State shall carry out a 
statewide transportation planning process that pro-
vides for the consideration of projects, strategies, and 
implementing projects and services that will— 
‘‘(A) support the economic vitality of the 
United States, the States, nonmetropolitan areas, 
and metropolitan areas, especially by enabling 
global competitiveness, productivity, and effi-
ciency; 
‘‘(B) increase the safety of the transpor-
tation system for motorized and nonmotorized 
users; 
‘‘(C) increase the security of the transpor-
tation system for motorized and nonmotorized 
users; 
‘‘(D) increase the accessibility and mobility 
of people and freight; 
‘‘(E) protect and enhance the environment 
(including the protection of habitat, water qual-
ity, and agricultural and forest land, while 
minimizing invasive species), promote energy 
conservation, promote consistency between trans-
portation improvements and State and local 
land use planning and economic development 
patterns, and improve the quality of life (includ-
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ing minimizing adverse health effects from mo-
bile source air pollution and promoting the link-
age of the transportation and development goals 
of the State); 
‘‘(F) 
enhance 
the 
integration 
and 
connectivity of the transportation system, across 
and between modes throughout the State, for peo-
ple and freight; 
‘‘(G) promote efficient system management 
and operation; and 
‘‘(H) emphasize the preservation and effi-
cient use of the existing transportation system. 
‘‘(2) SELECTION
OF
PROJECTS
AND
STRATE-
GIES.—After soliciting and considering any relevant 
public comments, the State shall determine which of 
the projects and strategies described in paragraph (1) 
are most appropriate. 
‘‘(3) MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—A transportation plan 
under this subsection shall include a discussion 
of— 
‘‘(i) 
types 
of 
potential 
habitat, 
hydrological, and environmental mitigation 
activities that may assist in compensating
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for loss of habitat, wetland, and other envi-
ronmental functions; and 
‘‘(ii) potential areas to carry out these 
activities, including a discussion of areas 
that may have the greatest potential to re-
store and maintain the habitat types and 
hydrological or environmental functions af-
fected by the plan. 
‘‘(B) CONSULTATION.—The discussion de-
scribed in subparagraph (A) shall be developed 
in consultation with Federal and State tribal 
wildlife, land management, and regulatory agen-
cies. 
‘‘(4) FAILURE TO CONSIDER FACTORS.—The fail-
ure to consider any factor described in paragraph (1) 
shall not be reviewable by any court under title 23, 
this title, subchapter II of chapter 5 of title 5, or 
chapter 7 of title 5 in any matter affecting a Plan, 
a Program, a project or strategy, or the certification 
of a planning process. 
‘‘(e) ADDITIONAL REQUIREMENTS.—In carrying out 
planning under this section, each State shall consider— 
‘‘(1) with respect to nonmetropolitan areas, the 
concerns of affected local officials with responsibility 
for transportation;
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HR 3550 EAS 
‘‘(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 Plans, Programs, and plan-
ning activities with related planning activities being 
carried out outside of metropolitan planning areas 
and between States. 
‘‘(f) STATEWIDE TRANSPORTATION PLAN.— 
‘‘(1) DEVELOPMENT.—Each State shall develop a 
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) CONSULTATION WITH GOVERNMENTS.— 
‘‘(A) METROPOLITAN
PLANNING
AREAS.— 
The Plan shall be developed for each metropoli-
tan planning area in the State in cooperation 
with the metropolitan planning organization 
designated for the metropolitan planning area 
under section 5303. 
‘‘(B) NONMETROPOLITAN AREAS.—With re-
spect to nonmetropolitan areas, the statewide 
transportation plan shall be developed in con-
sultation with affected nonmetropolitan officials
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HR 3550 EAS 
with responsibility for transportation. The con-
sultation process shall not require the review or 
approval of the Secretary. 
‘‘(C) INDIAN TRIBAL AREAS.—With respect 
to each area of the State under the jurisdiction 
of an Indian tribal government, the Plan shall 
be developed in consultation with the tribal gov-
ernment and the Secretary of the Interior. 
‘‘(D) CONSULTATION, 
COMPARISON, 
AND 
CONSIDERATION.— 
‘‘(i) IN GENERAL.—The Plan shall be 
developed, as appropriate, in consultation 
with State and local agencies responsible 
for— 
‘‘(I) land use management; 
‘‘(II) natural resources; 
‘‘(III) environmental protection; 
‘‘(IV) conservation; and 
‘‘(V) historic preservation. 
‘‘(ii) COMPARISON
AND
CONSIDER-
ATION.—Consultation under clause (i) shall 
involve— 
‘‘(I) comparison of transportation 
plans to State conservation plans or 
maps, if available;
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HR 3550 EAS 
‘‘(II) comparison of transpor-
tation plans to inventories of natural 
or historic resources, if available; or 
‘‘(III) 
consideration 
of 
areas 
where wildlife crossing structures may 
be needed to ensure connectivity be-
tween wildlife habitat linkage areas. 
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 
In developing the Plan, the State shall— 
‘‘(A) provide citizens, affected public agen-
cies, representatives of public transportation em-
ployees, freight shippers, private providers of 
transportation, representatives of users of public 
transportation, representatives of users of pedes-
trian walkways and bicycle transportation fa-
cilities, providers of freight transportation serv-
ices, and other interested parties with a reason-
able opportunity to comment on the proposed 
Plan; and 
‘‘(B) to the maximum extent practicable— 
‘‘(i) hold any public meetings at con-
venient and accessible locations and times; 
‘‘(ii) employ visualization techniques 
to describe plans; and
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‘‘(iii) make public information avail-
able in electronically accessible format and 
means, such as the World Wide Web. 
‘‘(4) MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—A Plan shall include a 
discussion of— 
‘‘(i) 
types 
of 
potential 
habitat, 
hydrological, and environmental mitigation 
activities that may assist in compensating 
for loss of habitat, wetlands, and other envi-
ronmental functions; and 
‘‘(ii) potential areas to carry out these 
activities, including a discussion of areas 
that may have the greatest potential to re-
store and maintain the habitat types and 
hydrological or environmental functions af-
fected by the plan. 
‘‘(B) CONSULTATION.—The discussion de-
scribed in subparagraph (A) shall be developed 
in consultation with Federal and State tribal 
wildlife, land management, and regulatory agen-
cies. 
‘‘(5) TRANSPORTATION
STRATEGIES.—A Plan 
shall identify transportation strategies necessary to 
efficiently serve the mobility needs of people.
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‘‘(6) FINANCIAL PLAN.—The Plan may include a 
financial plan that— 
‘‘(A) demonstrates how the adopted Plan 
can be implemented; 
‘‘(B) indicates resources from public and 
private sources that are reasonably expected to be 
made available to carry out the Plan; 
‘‘(C) recommends any additional financing 
strategies for needed projects and programs; and 
‘‘(D) may include, for illustrative purposes, 
additional projects that would be included in the 
adopted Plan if reasonable additional resources 
beyond those identified in the financial plan 
were available. 
‘‘(7) SELECTION
OF
PROJECTS
FROM
ILLUS-
TRATIVE LIST.—A State shall not be required to select 
any project from the illustrative list of additional 
projects described in paragraph (6)(D). 
‘‘(8) EXISTING SYSTEM.—The Plan should in-
clude capital, operations and management strategies, 
investments, procedures, and other measures to ensure 
the preservation and most efficient use of the existing 
transportation system. 
‘‘(9) PUBLICATION OF LONG-RANGE TRANSPOR-
TATION PLANS.—Each Plan prepared by a State shall
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be published or otherwise made available, including, 
to the maximum extent practicable, in electronically 
accessible formats and means, such as the World Wide 
Web. 
‘‘(g) STATEWIDE
TRANSPORTATION
IMPROVEMENT 
PROGRAM.— 
‘‘(1) DEVELOPMENT.—Each State shall develop a 
Program for all areas of the State. 
‘‘(2) CONSULTATION WITH GOVERNMENTS.— 
‘‘(A) METROPOLITAN
PLANNING
AREAS.— 
With respect to each metropolitan planning area 
in the State, the Program shall be developed in 
cooperation with the metropolitan planning or-
ganization designated for the metropolitan plan-
ning area under section 5303. 
‘‘(B) NONMETROPOLITAN AREAS.—With re-
spect to each nonmetropolitan area in the State, 
the Program shall be developed in consultation 
with affected nonmetropolitan local officials with 
responsibility for transportation. The consulta-
tion process shall not require the review or ap-
proval of the Secretary. 
‘‘(C) INDIAN TRIBAL AREAS.—With respect 
to each area of the State under the jurisdiction 
of an Indian tribal government, the Program
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shall be developed in consultation with the tribal 
government and the Secretary of the Interior. 
‘‘(3) PARTICIPATION BY INTERESTED PARTIES.— 
In developing the Program, the State shall provide 
citizens, affected public agencies, representatives of 
public transportation employees, freight shippers, pri-
vate providers of transportation, providers of freight 
transportation services, representatives of users of 
public transit, representatives of users of pedestrian 
walkways and bicycle transportation facilities, and 
other interested parties with a reasonable opportunity 
to comment on the proposed Program. 
‘‘(4) INCLUDED PROJECTS.— 
‘‘(A) IN GENERAL.—A Program developed 
under this subsection for a State shall include 
federally supported surface transportation ex-
penditures within the boundaries of the State. 
‘‘(B) LISTING OF PROJECTS.— 
‘‘(i) IN GENERAL.—The Program shall 
cover a minimum of 4 years, identify 
projects by year, be fiscally constrained by 
year, and be updated not less than once 
every 4 years. 
‘‘(ii) PUBLICATION.—An annual list-
ing of projects for which funds have been ob-
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ligated in the preceding 4 years in each 
metropolitan planning area shall be pub-
lished or otherwise made available by the 
cooperative effort of the State, transit oper-
ator, and the metropolitan planning organi-
zation for public review. The listing shall be 
consistent with the funding categories iden-
tified in each metropolitan transportation 
improvement program. 
‘‘(C) INDIVIDUAL IDENTIFICATION.— 
‘‘(i) 
REGIONALLY
SIGNIFICANT 
PROJECTS.—Regionally significant projects 
proposed for funding under chapter 2 of 
title 23 shall be identified individually in 
the transportation improvement program. 
‘‘(ii) OTHER PROJECTS.—Projects pro-
posed for funding under chapter 2 of title 
23 that are not determined to be regionally 
significant shall be grouped in 1 line item 
or identified individually. 
‘‘(D) 
CONSISTENCY
WITH
STATEWIDE 
TRANSPORTATION PLAN.—Each project included 
in the list described in subparagraph (B) shall 
be—
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‘‘(i) consistent with the Plan developed 
under this section for the State; 
‘‘(ii) identical to the project or phase of 
the project as described in each year of the 
approved metropolitan transportation im-
provement program; and 
‘‘(iii) in conformance with the applica-
ble 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 designated as nonattainment 
for ozone or carbon monoxide under that 
Act. 
‘‘(E) REQUIREMENT OF ANTICIPATED FULL 
FUNDING.—The Program shall not include a 
project, or an identified phase of a project, unless 
full funding can reasonably be anticipated to be 
available for the project within the time period 
contemplated for completion of the project. 
‘‘(F) FINANCIAL PLAN.—The Program may 
include a financial plan that— 
‘‘(i) demonstrates how the approved 
Program can be implemented; 
‘‘(ii) indicates resources from public 
and private sources that are reasonably ex-
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HR 3550 EAS 
pected to be made available to carry out the 
Program; 
‘‘(iii) recommends any additional fi-
nancing strategies for needed projects and 
programs; and 
‘‘(iv) may include, for illustrative pur-
poses, additional projects that would be in-
cluded in the adopted transportation plan if 
reasonable additional resources beyond those 
identified in the financial plan were avail-
able. 
‘‘(G) SELECTION OF PROJECTS FROM ILLUS-
TRATIVE LIST.— 
‘‘(i) NO REQUIRED SELECTION.—Not-
withstanding subparagraph (F), a State 
shall not be required to select any project 
from the illustrative list of additional 
projects described in subparagraph (F)(iv). 
‘‘(ii) REQUIRED
APPROVAL
BY
THE 
SECRETARY.—A State shall not include any 
project from the illustrative list of addi-
tional projects described in subparagraph 
(F)(iv) in an approved Program without 
the approval of the Secretary.
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‘‘(H) PRIORITIES.—The Program shall re-
flect the priorities for programming and expend-
itures of funds, including transportation and 
transit enhancement activities, required by title 
23 and this chapter, and transportation control 
measures included in the State’s air quality im-
plementation plan. 
‘‘(5) PROJECT
SELECTION
FOR
AREAS
WITH 
FEWER THAN 50,000 INDIVIDUALS.— 
‘‘(A) IN GENERAL.—Each State, in coopera-
tion with the affected nonmetropolitan local offi-
cials with responsibility for transportation, shall 
select projects to be carried out in areas with 
fewer than 50,000 individuals from the approved 
Program (excluding projects carried out under 
the National Highway System, the bridge pro-
gram, or the interstate maintenance program 
under title 23 or sections 5310 and 5311 of this 
title). 
‘‘(B) CERTAIN PROGRAMS.—Each State, in 
consultation with the affected nonmetropolitan 
local officials with responsibility for transpor-
tation, shall select, from the approved Program, 
projects to be carried out in areas with fewer 
than 50,000 individuals under the National
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Highway System, the bridge program, or the 
Interstate maintenance program under title 23 
or under sections 5310 and 5311 of this title. 
‘‘(6) STATEWIDE
TRANSPORTATION
IMPROVE-
MENT
PROGRAM
APPROVAL.—A Program developed 
under this subsection shall be reviewed and based on 
a current planning finding approved by the Secretary 
not less frequently than once every 4 years. 
‘‘(7) PLANNING
FINDING.—Not less frequently 
than once every 4 years, the Secretary shall determine 
whether the transportation planning process through 
which Plans and Programs are developed are con-
sistent with this section and section 5303. 
‘‘(8) MODIFICATIONS TO PROJECT PRIORITY.— 
Notwithstanding any other provision of law, a project 
included in the approved Program may be advanced 
in place of another project in the program without the 
approval of the Secretary. 
‘‘(h) FUNDING.—Funds set aside pursuant to section 
104(i) of title 23 and 5308 of this title shall be available 
to carry out this section. 
‘‘(i) TREATMENT OF CERTAIN STATE LAWS AS CON-
GESTION MANAGEMENT SYSTEMS.—For purposes of this 
section and section 5303, State laws, rules, or regulations 
pertaining to congestion management systems or programs
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may constitute the congestion management system under 
section 5303(i)(3) if the Secretary determines that the State 
laws, rules, or regulations are consistent with, and fulfill 
the intent of, the purposes of section 5303. 
‘‘(j) CONTINUATION
OF
CURRENT
REVIEW
PRAC-
TICE.—Any decision by the Secretary under this section, 
regarding a metropolitan or statewide transportation plan 
or the Program, shall not be considered to be a Federal ac-
tion subject to review under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).’’. 
SEC. 3007. TRANSPORTATION MANAGEMENT AREAS. 
Section 5305 is repealed. 
SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION. 
Section 5306 is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘5305 of this title’’ and in-
serting ‘‘5308’’; and 
(B) by inserting ‘‘, as determined by local 
policies, criteria, and decision making,’’ after 
‘‘feasible’’; 
(2) in subsection (b) by striking ‘‘5303–5305 of 
this title’’ and inserting ‘‘5303, 5304, and 5308’’; and 
(3) by adding at the end the following: 
‘‘(c) REGULATIONS.—Not later than 1 year after the 
date of enactment of the Federal Public Transportation Act
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of 2004, the Secretary shall issue regulations describing how 
the requirements under this chapter relating to subsection 
(a) shall be enforced.’’. 
SEC. 3009. URBANIZED AREA FORMULA GRANTS. 
(a) TECHNICAL
AMENDMENTS.—Section 5307 is 
amended— 
(1) by striking subsections (h), (j) and (k); and 
(2) by redesignating subsections (i), (l), (m), and 
(n) as subsections (h), (i), (j), and (k), respectively. 
(b) DEFINITIONS.—Section 5307(a) is amended— 
(1) by amending paragraph (2)(A) to read as 
follows: 
‘‘(A) an entity designated, in accordance 
with the planning process under sections 5303, 
5304, and 5306, by the chief executive officer of 
a State, responsible local officials, and publicly 
owned operators of public transportation, to re-
ceive and apportion amounts under sections 
5336 and 5337 that are attributable to transpor-
tation management areas designated under sec-
tion 5303; or’’; and 
(2) by adding at the end the following: 
‘‘(3) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, a 
nonprofit organization, or a private operator of pub-
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lic transportation service that may receive a Federal 
transit program grant indirectly through a recipient, 
rather than directly from the Federal Government.’’. 
(c) GENERAL AUTHORITY.—Section 5307(b) is amend-
ed— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—The Secretary of Transpor-
tation may award grants under this section for— 
‘‘(A) capital projects, including associated 
capital maintenance items; 
‘‘(B) planning, including mobility manage-
ment; 
‘‘(C) transit enhancements; 
‘‘(D) operating costs of equipment and fa-
cilities for use in public transportation in an ur-
banized area with a population of less than 
200,000; and 
‘‘(E) operating costs of equipment and fa-
cilities for use in public transportation in a por-
tion or portions of an urbanized area with a 
population of at least 200,000, but not more 
than 225,000, if— 
‘‘(i) the urbanized area includes parts 
of more than 1 State;
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‘‘(ii) the portion of the urbanized area 
includes only 1 State; 
‘‘(iii) the population of the portion of 
the urbanized area is less than 30,000; and 
‘‘(iv) the grants will not be used to 
provide public transportation outside of the 
portion of the urbanized area.’’; 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) SPECIAL
RULE
FOR
FISCAL
YEARS
2004 
THROUGH 2006— 
‘‘(A) INCREASED
FLEXIBILITY.—The Sec-
retary may award grants under this section, 
from funds made available to carry out this sec-
tion for each of the fiscal years 2004 through 
2006, to finance the operating cost of equipment 
and facilities for use in mass transportation in 
an urbanized area with a population of at least 
200,000, as determined by the 2000 decennial 
census of population if— 
‘‘(i) the urbanized area had a popu-
lation of less than 200,000, as determined 
by the 1990 decennial census of population; 
‘‘(ii) a portion of the urbanized area 
was a separate urbanized area with a popu-
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lation of less than 200,000, as determined 
by the 1990 decennial census of population; 
‘‘(iii) the area was not designated as 
an urbanized area, as determined by the 
1990 decennial census of population; or 
‘‘(iv) a portion of the area was not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and re-
ceived assistance under section 5311 in fis-
cal year 2002. 
‘‘(B) MAXIMUM AMOUNTS IN FISCAL YEAR 
2004.—In fiscal year 2004— 
‘‘(i) amounts made available to any 
urbanized area under clause (i) or (ii) of 
subparagraph (A) shall be not more than 
the amount apportioned in fiscal year 2002 
to the urbanized area with a population of 
less than 200,000, as determined in the 
1990 decennial census of population; 
‘‘(ii) amounts made available to any 
urbanized area under subparagraph (A)(iii) 
shall be not more than the amount appor-
tioned to the urbanized area under this sec-
tion for fiscal year 2003; and
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‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and el-
igible to receive funds under subparagraph 
(A)(iv), shall receive an amount of funds to 
carry out this section that is not less than 
the amount the portion of the area received 
under section 5311 for fiscal year 2002. 
‘‘(C) MAXIMUM AMOUNTS IN FISCAL YEAR 
2005.—In fiscal year 2005— 
‘‘(i) amounts made available to any 
urbanized area under clause (i) or (ii) of 
subparagraph (A) shall be not more than 50 
percent of the amount apportioned in fiscal 
year 2002 to the urbanized area with a 
population of less than 200,000, as deter-
mined in the 1990 decennial census of pop-
ulation; 
‘‘(ii) amounts made available to any 
urbanized area under subparagraph (A)(iii) 
shall be not more than 50 percent of the 
amount apportioned to the urbanized area 
under this section for fiscal year 2003; and 
‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
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mined by the 1990 decennial census, and el-
igible to receive funds under subparagraph 
(A)(iv), shall receive an amount of funds to 
carry out this section that is not less 50 
percent of the amount the portion of the 
area received under section 5311 for fiscal 
year 2002. 
‘‘(D) MAXIMUM AMOUNTS IN FISCAL YEAR 
2006.—In fiscal year 2006— 
‘‘(i) amounts made available to any 
urbanized area under clause (i) or (ii) of 
subparagraph (A) shall be not more than 25 
percent of the amount apportioned in fiscal 
year 2002 to the urbanized area with a 
population of less than 200,000, as deter-
mined in the 1990 decennial census of pop-
ulation; 
‘‘(ii) amounts made available to any 
urbanized area under subparagraph (A)(iii) 
shall be not more than 25 percent of the 
amount apportioned to the urbanized area 
under this section for fiscal year 2003; and 
‘‘(iii) each portion of any area not des-
ignated as an urbanized area, as deter-
mined by the 1990 decennial census, and el-
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igible to receive funds under subparagraph 
(A)(iv), shall receive an amount of funds to 
carry out this section that is not less than 
25 percent of the amount the portion of the 
area received under section 5311 in fiscal 
year 2002.’’; and 
(3) by striking paragraph (4). 
(d) PUBLIC PARTICIPATION REQUIREMENTS.—Section 
5307(c)(5) is amended by striking ‘‘section 5336’’ and in-
serting ‘‘sections 5336 and 5337’’. 
(e) 
GRANT
RECIPIENT
REQUIREMENTS.—Section 
5307(d)(1) is amended— 
(1) in subparagraph (A), by inserting ‘‘, includ-
ing safety and security aspects of the program’’ after 
‘‘program’’; 
(2) in subparagraph (E), by striking ‘‘section’’ 
and all that follows and inserting ‘‘section, the recipi-
ent will comply with sections 5323 and 5325;’’; 
(3) in subparagraph (H), by striking ‘‘sections 
5301(a) and (d), 5303-5306, and 5310(a)-(d) of this 
title’’ and inserting ‘‘subsections (a) and (d) of section 
5301 and sections 5303 through 5306’’; 
(4) in subparagraph (I) by striking ‘‘and’’ at the 
end;
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(5) in subparagraph (J), by striking the period 
at the end and inserting ‘‘; and’’; and 
(6) by adding at the end the following: 
‘‘(K) if located in an urbanized area with 
a population of at least 200,000, will expend not 
less than 1 percent of the amount the recipient 
receives each fiscal year under this section for 
transit enhancement activities described in sec-
tion 5302(a)(15).’’. 
(f) 
GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5307(e) is amended— 
(1) by striking the first sentence and inserting 
the following: 
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall cover 80 percent of the 
net project cost.’’; 
(2) by striking ‘‘A grant for operating expenses’’ 
and inserting the following: 
‘‘(2) OPERATING EXPENSES.—A grant for oper-
ating expenses’’; 
(3) by striking the fourth sentence and inserting 
the following: 
‘‘(3) REMAINING COSTS.—The remainder of the 
net project cost shall be provided in cash from non- 
Federal sources or revenues derived from the sale of
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HR 3550 EAS 
advertising and concessions and amounts received 
under a service agreement with a State or local social 
service agency or a private social service organiza-
tion.’’; and 
(4) by adding at the end the following: ‘‘The pro-
hibitions on the use of funds for matching require-
ments under section 403(a)(5)(C)(vii) of the Social 
Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not 
apply to the remainder.’’. 
(g) UNDERTAKING PROJECTS IN ADVANCE.—Section 
5307(g) is amended by striking paragraph (4). 
(h) 
RELATIONSHIP
TO
OTHER
LAWS.—Section 
5307(k), as redesignated, is amended to read as follows: 
‘‘(k) RELATIONSHIP TO OTHER LAWS.— 
‘‘(1) APPLICABLE
PROVISIONS.—Sections 5301, 
5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 
5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335 
apply to this section and to any grant made under 
this section. 
‘‘(2) INAPPLICABLE PROVISIONS.— 
‘‘(A) IN
GENERAL.—Except as provided 
under this section, no other provision of this 
chapter applies to this section or to a grant 
made under this section.
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‘‘(B) TITLE 5.—The provision of assistance 
under this chapter shall not be construed as 
bringing within the application of chapter 15 of 
title 5, any nonsupervisory employee of a public 
transportation system (or any other agency or 
entity performing related functions) to which 
such chapter is otherwise inapplicable.’’. 
SEC. 3010. PLANNING PROGRAMS. 
(a) IN GENERAL.—Section 5308 is amended to read 
as follows: 
‘‘§ 5308. Planning programs 
‘‘(a) GRANTS AUTHORIZED.—Under criteria estab-
lished by the Secretary, the Secretary may award grants 
to States, authorities of the States, metropolitan planning 
organizations, and local governmental authorities, make 
agreements with other departments, agencies, or instrumen-
talities of the Government, or enter into contracts with pri-
vate nonprofit or for-profit entities to— 
‘‘(1) develop transportation plans and programs; 
‘‘(2) plan, engineer, design, and evaluate a pub-
lic transportation project; or 
‘‘(3) conduct technical studies relating to public 
transportation, including—
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‘‘(A) studies related to management, plan-
ning, operations, capital requirements, and eco-
nomic feasibility; 
‘‘(B) evaluations of previously financed 
projects; 
‘‘(C) peer reviews and exchanges of technical 
data, information, assistance, and related activi-
ties in support of planning and environmental 
analyses among metropolitan planning organiza-
tions and other transportation planners; and 
‘‘(D) other similar and related activities 
preliminary to, and in preparation for, con-
structing, acquiring, or improving the operation 
of facilities and equipment. 
‘‘(b) PURPOSE.—To the extent practicable, the Sec-
retary shall ensure that amounts appropriated pursuant to 
section 5338 to carry out this section and sections 5303, 
5304, and 5306 are used to support balanced and com-
prehensive transportation planning that considers the rela-
tionships among land use and all transportation modes, 
without regard to the programmatic source of the planning 
amounts. 
‘‘(c) METROPOLITAN PLANNING PROGRAM.— 
‘‘(1) ALLOCATIONS TO STATES.—
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‘‘(A) IN GENERAL.—The Secretary shall al-
locate 80 percent of the amount made available 
under subsection (g)(3)(A) to States to carry out 
sections 5303 and 5306 in a ratio equal to the 
population in urbanized areas in each State, di-
vided by the total population in urbanized areas 
in all States, as shown by the latest available de-
cennial census of population. 
‘‘(B) MINIMUM
ALLOCATION.—Each State 
shall receive not less than 0.5 percent of the total 
amount allocated under this paragraph. 
‘‘(2) AVAILABILITY OF FUNDS.—A State receiv-
ing an allocation under paragraph (1) shall promptly 
distribute such funds to metropolitan planning orga-
nizations in the State under a formula— 
‘‘(A) developed by the State in cooperation 
with the metropolitan planning organizations; 
‘‘(B) approved by the Secretary of Trans-
portation; 
‘‘(C) that considers population in urbanized 
areas; and 
‘‘(D) that provides an appropriate distribu-
tion for urbanized areas to carry out the cooper-
ative processes described in this section. 
‘‘(3) SUPPLEMENTAL ALLOCATIONS.—
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‘‘(A) IN GENERAL.—The Secretary shall al-
locate 20 percent of the amount made available 
under subsection (g)(3)(A) to States to supple-
ment allocations made under paragraph (1) for 
metropolitan planning organizations. 
‘‘(B) 
ALLOCATION
FORMULA.—Amounts 
under this paragraph shall be allocated under a 
formula that reflects the additional cost of car-
rying out planning, programming, and project 
selection responsibilities in complex metropolitan 
planning areas under sections 5303, 5304, and 
5306. 
‘‘(d) STATE PLANNING AND RESEARCH PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall allocate 
amounts made available pursuant to subsection 
(g)(3)(B) to States for grants and contracts to carry 
out sections 5304, 5306, 5315, and 5322 so that each 
State receives an amount equal to the ratio of the 
population in urbanized areas in that State, divided 
by the total population in urbanized areas in all 
States, as shown by the latest available decennial cen-
sus. 
‘‘(2) MINIMUM ALLOCATION.—Each State shall 
receive not less than 0.5 percent of the amount allo-
cated under this subsection.
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‘‘(3) REALLOCATION.—A State may authorize 
part of the amount made available under this sub-
section to be used to supplement amounts available 
under subsection (c). 
‘‘(e) PLANNING CAPACITY BUILDING PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a Planning Capacity Building Program (re-
ferred to in this subsection as the ‘‘Program’’) to sup-
port and fund innovative practices and enhancements 
in transportation planning. 
‘‘(2) PURPOSE.—The purpose of the Program 
shall be to promote activities that support and 
strengthen the planning processes required under this 
section and sections 5303 and 5304. 
‘‘(3) ADMINISTRATION.—The Program shall be 
administered by the Federal Transit Administration 
in cooperation with the Federal Highway Adminis-
tration. 
‘‘(4) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—Appropriations author-
ized under subsection (g)(1) to carry out this 
subsection may be used— 
‘‘(i) to provide incentive grants to 
States, metropolitan planning organiza-
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tions, and public transportation operators; 
and 
‘‘(ii) to conduct research, disseminate 
information, and provide technical assist-
ance. 
‘‘(B) GRANTS, CONTRACTS, COOPERATIVE 
AGREEMENTS.—In carrying out the activities de-
scribed in subparagraph (A), the Secretary 
may— 
‘‘(i) expend appropriated funds di-
rectly; or 
‘‘(ii) award grants to, or enter into 
contracts, cooperative agreements, and other 
transactions with, a Federal agency, State 
agency, local governmental authority, asso-
ciation, nonprofit or for-profit entity, or in-
stitution of higher education. 
‘‘(f) GOVERNMENT’S SHARE
OF COSTS.—Amounts 
made available to carry out subsections (c), (d), and (e) 
may not exceed 80 percent of the costs of the activity unless 
the Secretary of Transportation determines that it is in the 
interest of the Government not to require State or local 
matching funds.
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‘‘(g) ALLOCATION OF FUNDS.—Of the amounts made 
available under section 5338(b)(2)(B) for fiscal year 2005 
and each fiscal year thereafter to carry out this section— 
‘‘(1) $5,000,000 shall be allocated for the Plan-
ning Capacity Building Program established under 
subsection (e); 
‘‘(2) $20,000,000 shall be allocated for grants 
under subsection (a)(2) for alternatives analyses re-
quired by section 5309(e)(2)(A); and 
‘‘(3) of the remaining amount— 
‘‘(A) 82.72 percent shall be allocated for the 
metropolitan planning program described in 
subsection (d); and 
‘‘(B) 17.28 percent shall be allocated to 
carry out subsection (b). 
‘‘(h) REALLOCATIONS.—Any amount allocated under 
this section that has not been used 3 years after the end 
of the fiscal year in which the amount was allocated shall 
be reallocated among the States.’’. 
(b) CONFORMING AMENDMENT.—The item relating to 
section 5308 in the table of sections for chapter 53 is amend-
ed to read as follows: 
‘‘5308. Planning programs.’’. 
SEC. 3011. CAPITAL INVESTMENT PROGRAM. 
(a) SECTION HEADING.—The section heading of sec-
tion 5309 is amended to read as follows:
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‘‘§ 5309. Capital investment grants’’. 
(b) GENERAL AUTHORITY.—Section 5309(a) is amend-
ed— 
(1) in paragraph (1)— 
(A) by striking ‘‘(1) The Secretary of 
Transportation may make grants and loans’’ 
and inserting the following: 
‘‘(1) GRANTS AUTHORIZED.—The Secretary may 
award grants’’; 
(B) in subparagraph (A), by striking ‘‘al-
ternatives analysis related to the development of 
systems,’’; 
(C) by striking subparagraphs (B), (C), 
(D), and (G); 
(D) by redesignating subparagraphs (E), 
(F), and (H) as subparagraphs (B), (C), and 
(D), respectively; 
(E) in subparagraph (C), as redesignated, 
by striking the semicolon at the end and insert-
ing ‘‘, including programs of bus and bus-related 
projects for assistance to subrecipients which are 
public agencies, private companies engaged in 
public transportation, or private nonprofit orga-
nizations; and’’; and 
(F) in subparagraph (D), as redesignated—
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(i) by striking ‘‘to support fixed guide-
way systems’’; and 
(ii) by striking ‘‘dedicated bus and 
high occupancy vehicle’’; 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) GRANTEE REQUIREMENTS.— 
‘‘(A) GRANTEE IN URBANIZED AREA.—The 
Secretary shall require that any grants awarded 
under this section to a recipient or subrecipient 
located in an urbanized area shall be subject to 
all terms, conditions, requirements, and provi-
sions that the Secretary determines to be nec-
essary or appropriate for the purposes of this 
section, including requirements for the disposi-
tion of net increases in the value of real property 
resulting from the project assisted under this sec-
tion. 
‘‘(B) GRANTEE NOT IN URBANIZED AREA.— 
The Secretary shall require that any grants 
awarded under this section to a recipient or sub-
recipient not located in an urbanized area shall 
be subject to the same terms, conditions, require-
ments, and provisions as a recipient or sub-
recipient of assistance under section 5311.
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‘‘(C) SUBRECIPIENT.—The Secretary shall 
require that any private, nonprofit organization 
that is a subrecipient of a grant awarded under 
this section shall be subject to the same terms, 
conditions, requirements, and provisions as a 
subrecipient of assistance under section 5310. 
‘‘(D) 
STATEWIDE
TRANSIT
PROVIDER 
GRANTEES.—A statewide transit provider that 
receives a grant under this section shall be sub-
ject to the terms, conditions, requirements, and 
provisions of this section or section 5311, con-
sistent with the scope and purpose of the grant 
and the location of the project.’’; and 
(3) by adding at the end the following: 
‘‘(3) CERTIFICATION.—An applicant that has 
submitted the certifications required under subpara-
graphs (A), (B), (C), and (H) of section 5307(d)(1) 
shall be deemed to have provided sufficient informa-
tion upon which the Secretary may make the findings 
required under this subsection.’’. 
(c) DEFINED TERM.—Section 5309(b) is amended to 
read as follows: 
‘‘(b) DEFINED TERM.—As used in this section, the 
term ‘alternatives analysis’ means a study conducted as
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part of the transportation planning process required under 
sections 5303 and 5304, which includes— 
‘‘(1) an assessment of a wide range of public 
transportation alternatives designed to address a 
transportation problem in a corridor or subarea; 
‘‘(2) sufficient information to enable the Sec-
retary to make the findings of project justification 
and local financial commitment required under this 
section; 
‘‘(3) the selection of a locally preferred alter-
native; and 
‘‘(4) the adoption of the locally preferred alter-
native as part of the long-range transportation plan 
required under section 5303.’’. 
(d) GRANT
REQUIREMENTS.—Section 5309(d) is 
amended to read as follows: 
‘‘(d) GRANT REQUIREMENTS.—The Secretary may not 
approve a grant for a project under this section unless the 
Secretary determines that— 
‘‘(1) the project is part of an approved transpor-
tation plan and program of projects required under 
sections 5303, 5304, and 5306; and 
‘‘(2) the applicant has, or will have—
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‘‘(A) the legal, financial, and technical ca-
pacity to carry out the project, including safety 
and security aspects of the project; 
‘‘(B) satisfactory continuing control over 
the use of the equipment or facilities; and 
‘‘(C) the capability and willingness to 
maintain the equipment or facilities.’’. 
(e) MAJOR
CAPITAL
INVESTMENT
PROJECTS
OF 
$75,000,000 OR MORE.—Section 5309(e) is amended to 
read as follows: 
‘‘(e) MAJOR CAPITAL INVESTMENT PROJECTS
OF 
$75,000,000 OR MORE.— 
‘‘(1) FULL FUNDING GRANT AGREEMENT.—The 
Secretary shall enter into a full funding grant agree-
ment, based on the evaluations and ratings required 
under this subsection, with each grantee receiving not 
less than $75,000,000 under this subsection for a new 
fixed guideway capital project that— 
‘‘(A) is authorized for final design and con-
struction; and 
‘‘(B) has been rated as medium, medium- 
high, or high, in accordance with paragraph 
(5)(B). 
‘‘(2) DETERMINATIONS.—The Secretary may not 
award a grant under this subsection for a new fixed
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guideway capital project unless the Secretary deter-
mines 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-
mental benefits, cost-effectiveness, operating effi-
ciencies, economic development effects, and public 
transportation supportive land use patterns and 
policies; and 
‘‘(C) supported by an acceptable degree of 
local financial commitment, including evidence 
of stable and dependable financing sources to 
construct the project, and maintain and operate 
the entire public transportation system, while 
ensuring that the extent and quality of existing 
public transportation services are not degraded. 
‘‘(3) EVALUATION OF PROJECT JUSTIFICATION.— 
In making the determinations under paragraph 
(2)(B) for a major capital investment grant, the Sec-
retary shall analyze, evaluate, and consider— 
‘‘(A) the results of the alternatives analysis 
and preliminary engineering for the proposed 
project;
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‘‘(B) the reliability of the forecasts of costs 
and utilization made by the recipient and the 
contractors to the recipient; 
‘‘(C) the direct and indirect costs of relevant 
alternatives; 
‘‘(D) factors such as— 
‘‘(i) congestion relief; 
‘‘(ii) improved mobility; 
‘‘(iii) air pollution; 
‘‘(iv) noise pollution; 
‘‘(v) energy consumption; and 
‘‘(vi) all associated ancillary and miti-
gation costs necessary to carry out each al-
ternative analyzed; 
‘‘(E) reductions in local infrastructure costs 
achieved through compact land use development 
and positive impacts on the capacity, utiliza-
tion, or longevity of other surface transportation 
assets and facilities; 
‘‘(F) the cost of suburban sprawl; 
‘‘(G) the degree to which the project in-
creases the mobility of the public transportation 
dependent population or promotes economic de-
velopment;
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‘‘(H) population density and current tran-
sit ridership in the transportation corridor; 
‘‘(I) the technical capability of the grant re-
cipient to construct the project; 
‘‘(J) any adjustment to the project justifica-
tion necessary to reflect differences in local land, 
construction, and operating costs; and 
‘‘(K) other factors that the Secretary deter-
mines to be appropriate to carry out this chap-
ter. 
‘‘(4) EVALUATION OF LOCAL FINANCIAL COMMIT-
MENT.— 
‘‘(A) IN GENERAL.—In evaluating a project 
under paragraph (2)(C), the Secretary shall re-
quire 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; 
‘‘(ii) each proposed local source of cap-
ital and operating financing is stable, reli-
able, and available within the proposed 
project timetable; and 
‘‘(iii) local resources are available to 
recapitalize and operate the overall pro-
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posed public transportation system, includ-
ing essential feeder bus and other services 
necessary to achieve the projected ridership 
levels, while ensuring that the extent and 
quality of existing public transportation 
services are not degraded. 
‘‘(B) EVALUATION CRITERIA.—In assessing 
the stability, reliability, and availability of pro-
posed sources of local financing under paragraph 
(2)(C), the Secretary shall consider— 
‘‘(i) the reliability of the forecasts of 
costs and utilization made by the recipient 
and the contractors to the recipient; 
‘‘(ii) existing grant commitments; 
‘‘(iii) the degree to which financing 
sources are dedicated to the proposed pur-
poses; 
‘‘(iv) any debt obligation that exists, or 
is proposed by the recipient, for the pro-
posed project or other public transportation 
purpose; and 
‘‘(v) the extent to which the project has 
a local financial commitment that exceeds 
the required non-Federal share of the cost of 
the project, provided that if the Secretary
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gives priority to financing projects that in-
clude more than the non-Federal share re-
quired under subsection (h), the Secretary 
shall give equal consideration to differences 
in the fiscal capacity of State and local gov-
ernments. 
‘‘(5) PROJECT ADVANCEMENT AND RATINGS.— 
‘‘(A) PROJECT ADVANCEMENT.—A proposed 
project under this subsection shall not advance 
from alternatives analysis to preliminary engi-
neering or from preliminary engineering to final 
design and construction unless the Secretary de-
termines that the project meets the requirements 
of this section and there is a reasonable likeli-
hood that the project will continue to meet such 
requirements. 
‘‘(B) RATINGS.—In making a determina-
tion under subparagraph (A), the Secretary shall 
evaluate and rate the project on a 5-point scale 
(high, medium-high, medium, medium-low, or 
low) based on the results of the alternatives anal-
ysis, the project justification criteria, and the de-
gree of local financial commitment, as required 
under this subsection. In rating the projects, the 
Secretary shall provide, in addition to the over-
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all project rating, individual ratings for each of 
the criteria established by regulation. 
‘‘(6) APPLICABILITY.—This subsection shall 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 
Public Transportation Act of 2004. 
‘‘(7) RULEMAKING.—Not later than 240 days 
after the date of enactment of the Federal Public 
Transportation Act of 2004, the Secretary shall issue 
regulations on the manner by which the Secretary 
shall evaluate and rate projects based on the results 
of alternatives analysis, project justification, and 
local financial commitment, in accordance with this 
subsection. 
‘‘(8) POLICY GUIDANCE.— 
‘‘(A) PUBLICATION.—The Secretary shall 
publish policy guidance regarding the new starts 
project review and evaluation process— 
‘‘(i) not later than 120 days after the 
date of enactment of the Federal Public 
Transportation Act of 2004; and 
‘‘(ii) each time significant changes are 
made by the Secretary to the new starts 
project review and evaluation process and
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criteria, but not less frequently than once 
every 2 years. 
‘‘(B) PUBLIC COMMENT AND RESPONSE.— 
The Secretary shall— 
‘‘(i) invite public comment to the pol-
icy guidance published under subparagraph 
(A); and 
‘‘(ii) publish a response to the com-
ments received under clause (i).’’. 
(f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS 
THAN $75,000,000.— Section 5309(f) is amended to read 
as follows: 
‘‘(f) MAJOR CAPITAL INVESTMENT PROJECTS OF LESS 
THAN $75,000,000.— 
‘‘(1) PROJECT
CONSTRUCTION
GRANT
AGREE-
MENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
enter into a project construction grant agree-
ment, based on evaluations and ratings required 
under this subsection, with each grantee receiv-
ing less than $75,000,000 under this subsection 
for a new fixed guideway or corridor improve-
ment capital project that— 
‘‘(i) is authorized by law; and
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‘‘(ii) has been rated as medium, me-
dium-high, or high, in accordance with 
paragraph (3)(B). 
‘‘(B) CONTENTS.— 
‘‘(i) 
IN
GENERAL.—An 
agreement 
under this paragraph shall specify— 
‘‘(I) the scope of the project to be 
constructed; 
‘‘(II) the estimated net cost of the 
project; 
‘‘(III) the schedule under which 
the project shall be constructed; 
‘‘(IV) the maximum amount of 
funding to be obtained under this sub-
section; 
‘‘(V) the proposed schedule for ob-
ligation of future Federal grants; and 
‘‘(VI) the sources of non-Federal 
funding. 
‘‘(ii) 
ADDITIONAL
FUNDING.—The 
agreement may include a commitment on 
the part of the Secretary to provide funding 
for the project in future fiscal years. 
‘‘(C) FULL FUNDING GRANT AGREEMENT.— 
An agreement under this paragraph shall be con-
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sidered a full funding grant agreement for the 
purposes of subsection (g). 
‘‘(2) SELECTION PROCESS.— 
‘‘(A) SELECTION CRITERIA.—The Secretary 
may not award a grant under this subsection for 
a proposed project unless the Secretary deter-
mines that the project is— 
‘‘(i) based on the results of planning 
and alternatives analysis; 
‘‘(ii) justified based on a review of its 
public transportation supportive land use 
policies, cost effectiveness, and effect on local 
economic development; and 
‘‘(iii) supported by an acceptable de-
gree of local financial commitment. 
‘‘(B) PLANNING
AND
ALTERNATIVES.—In 
evaluating a project under subparagraph (A)(i), 
the Secretary shall analyze and consider the re-
sults of planning and alternatives analysis for 
the project. 
‘‘(C) PROJECT JUSTIFICATION.—In making 
the determinations under subparagraph (A)(ii), 
the Secretary shall— 
‘‘(i) determine the degree to which local 
land use policies are supportive of the pub-
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lic transportation project and the degree to 
which the project is likely to achieve local 
developmental goals; 
‘‘(ii) determine the cost effectiveness of 
the project at the time of the initiation of 
revenue service; 
‘‘(iii) determine the degree to which the 
project will have a positive effect on local 
economic development; 
‘‘(iv) consider the reliability of the 
forecasts of costs and ridership associated 
with the project; and 
‘‘(v) consider other factors that the Sec-
retary determines to be appropriate to 
carry out this subsection. 
‘‘(D) LOCAL FINANCIAL COMMITMENT.—For 
purposes of subparagraph (A)(iii), the Secretary 
shall require that each proposed local source of 
capital and operating financing is stable, reli-
able, and available within the proposed project 
timetable. 
‘‘(3) ADVANCEMENT OF PROJECT TO DEVELOP-
MENT AND CONSTRUCTION.— 
‘‘(A) IN
GENERAL.—A proposed project 
under this subsection may not advance from the
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planning and alternatives analysis stage to 
project development and construction unless— 
‘‘(i) the Secretary finds that the project 
meets the requirements of this subsection 
and there is a reasonable likelihood that the 
project will continue to meet such require-
ments; and 
‘‘(ii) the metropolitan planning orga-
nization has adopted the locally preferred 
alternative for the project into the long- 
range transportation plan. 
‘‘(B) EVALUATION.—In making the findings 
under subparagraph (A), the Secretary shall 
evaluate and rate the project as high, medium- 
high, medium, medium-low, or low, based on the 
results of the analysis of the project justification 
criteria and the degree of local financial commit-
ment, as required under this subsection. 
‘‘(4) IMPACT REPORT.— 
‘‘(A) IN
GENERAL.—Not later than 240 
days after the date of enactment of the Federal 
Public Transportation Act of 2004, the Federal 
Transit Administration shall submit a report on 
the methodology to be used in evaluating the 
land use and economic development impacts of
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non-fixed guideway or partial fixed guideway 
projects to— 
‘‘(i) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate; and 
‘‘(ii) the Committee on Transportation 
and Infrastructure of the House of Rep-
resentatives. 
‘‘(B) CONTENTS.—The report submitted 
under subparagraph (A) shall address any quali-
tative and quantitative differences between fixed 
guideway and non-fixed guideway projects with 
respect to land use and economic development 
impacts. 
‘‘(5) REGULATIONS.—Not later than 120 days 
after the date of enactment of the Federal Public 
Transportation Act of 2004, the Secretary shall issue 
regulations establishing an evaluation and rating 
process for proposed projects under this subsection 
that is based on the results of project justification and 
local financial commitment, as required under this 
subsection.’’. 
(g) FULL FUNDING GRANT AGREEMENTS.—Section 
5309(g)(2) is amended by adding at the end the following: 
‘‘(C) BEFORE AND AFTER STUDY.—
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‘‘(i) IN
GENERAL.—Each full funding grant 
agreement shall require the applicant to conduct a 
study that— 
‘‘(I) describes and analyzes the impacts of 
the new start project on transit services and 
transit ridership; 
‘‘(II) evaluates the consistency of predicted 
and actual project characteristics and perform-
ance; and 
‘‘(III) identifies sources of differences be-
tween predicted and actual outcomes. 
‘‘(ii) INFORMATION COLLECTION AND ANALYSIS 
PLAN.— 
‘‘(I) SUBMISSION
OF
PLAN.—Applicants 
seeking a full funding grant agreement shall sub-
mit a complete plan for the collection and anal-
ysis of information to identify the impacts of the 
new start project and the accuracy of the fore-
casts prepared during the development of the 
project. Preparation of this plan shall be in-
cluded in the full funding grant agreement as an 
eligible activity. 
‘‘(II) CONTENTS OF PLAN.—The plan sub-
mitted under subclause (I) shall provide for—
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‘‘(aa) the collection of data on the cur-
rent transit system regarding transit service 
levels and ridership patterns, including ori-
gins and destinations, access modes, trip 
purposes, and rider characteristics; 
‘‘(bb) documentation of the predicted 
scope, service levels, capital costs, operating 
costs, and ridership of the project; 
‘‘(cc) collection of data on the transit 
system 2 years after the opening of the new 
start project, including analogous informa-
tion on transit service levels and ridership 
patterns and information on the as-built 
scope and capital costs of the new start 
project; and 
‘‘(dd) analysis of the consistency of 
predicted project characteristics with the 
after data. 
‘‘(D) COLLECTION OF DATA ON CURRENT SYSTEM.— 
To be eligible for a full funding grant agreement, recipients 
shall have collected data on the current system, according 
to the plan required, before the beginning of construction 
of the proposed new start project. Collection of this data 
shall be included in the full funding grant agreement as 
an eligible activity.
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‘‘(E) PUBLIC
PRIVATE
PARTNERSHIP
PILOT
PRO-
GRAM.— 
‘‘(i) AUTHORIZATION.—The Secretary may es-
tablish a pilot program to demonstrate the advantages 
of public-private partnerships for certain fixed guide-
way systems development projects. 
‘‘(ii) 
IDENTIFICATION
OF
QUALIFIED 
PROJECTS.—The Secretary shall identify qualified 
public-private partnership projects as permitted by 
applicable State and local enabling laws and work 
with project sponsors to enhance project delivery and 
reduce overall costs.’’. 
(h) FEDERAL SHARE OF NET PROJECT COST.—Sec-
tion 5309(h) is amended to read as follows: 
‘‘(h) FEDERAL SHARE OF ADJUSTED NET PROJECT 
COST.— 
‘‘(1) IN GENERAL.—The Secretary shall estimate 
the net project cost based on engineering studies, stud-
ies of economic feasibility, and information on the ex-
pected use of equipment or facilities. 
‘‘(2) ADJUSTMENT
FOR
COMPLETION
UNDER 
BUDGET.—The Secretary may adjust the final net 
project cost of a major capital investment project 
evaluated under subsections (e) and (f) to include the 
cost of eligible activities not included in the originally
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defined project if the Secretary determines that the 
originally defined project has been completed at a cost 
that is significantly below the original estimate. 
‘‘(3) MAXIMUM FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—A grant for the project 
shall be for 80 percent of the net project cost, or 
the net project cost as adjusted under paragraph 
(2), unless the grant recipient requests a lower 
grant percentage. 
‘‘(B) EXCEPTIONS.—The Secretary may 
provide a higher grant percentage than requested 
by the grant recipient if— 
‘‘(i) the Secretary determines that the 
net project cost of the project is not more 
than 10 percent higher than the net project 
cost estimated at the time the project was 
approved for advancement into preliminary 
engineering; and 
‘‘(ii) the ridership estimated for the 
project is not less than 90 percent of the 
ridership estimated for the project at the 
time the project was approved for advance-
ment into preliminary engineering. 
‘‘(4) OTHER SOURCES.—The costs not funded by 
a grant under this section may be funded from—
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‘‘(A) an undistributed cash surplus; 
‘‘(B) a replacement or depreciation cash 
fund or reserve; or 
‘‘(C) new capital, including any Federal 
funds that are eligible to be expended for trans-
portation. 
‘‘(5) PLANNED EXTENSION TO FIXED GUIDEWAY 
SYSTEM.—In addition to amounts allowed under 
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the Secretary determines that 
only non-Federal funds were used and that the pur-
chase was made for use on the extension. A refund or 
reduction of the costs not funded by a grant under 
this section may be made only if a refund of a pro-
portional amount of the grant is made at the same 
time. 
‘‘(6) EXCEPTION.—The prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to amounts 
allowed under paragraph (4).’’. 
(i) LOAN PROVISIONS AND FISCAL CAPACITY CONSID-
ERATIONS.—Section 5309 is amended— 
(1) by striking subsections (i), (j), (k), and (l);
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(2) by redesignating subsections (m) and (n) as 
subsections (i) and (j), respectively; 
(3) by striking subsection (o) (as added by sec-
tion 3009(i) of the Federal Transit Act of 1998); and 
(4) by redesignating subsections (o) and (p) as 
subsections (k) and (l), respectively. 
(j) ALLOCATING AMOUNTS.—Section 5309(i), as redes-
ignated, is amended to read as follows: 
‘‘(i) ALLOCATING AMOUNTS.— 
‘‘(1) FISCAL YEAR 2004.—Of the amounts made 
available or appropriated for fiscal year 2004 under 
section 5338(a)(3)— 
‘‘(A) $1,315,983,615 shall be allocated for 
projects of not less than $75,000,000 for major 
capital projects for new fixed guideway systems 
and extensions of such systems under subsection 
(e) and projects for new fixed guideway or cor-
ridor improvement capital projects under sub-
section (f); 
‘‘(B) $1,199,387,615 shall be allocated for 
capital projects for fixed guideway moderniza-
tion; and 
‘‘(C) $603,617,520 shall be allocated for 
capital projects for buses and bus-related equip-
ment and facilities.
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‘‘(2) IN GENERAL.—Of the amounts made avail-
able or appropriated for fiscal year 2005 and each 
fiscal year thereafter for grants under this section 
pursuant to subsections (b)(4) and (c) of section 
5338— 
‘‘(A) the amounts appropriated under sec-
tion 5338(c) shall be allocated for major capital 
projects for— 
‘‘(i) new fixed guideway systems and 
extensions of not less than $75,000,000, in 
accordance with subsection (e); and 
‘‘(ii) projects for new fixed guideway 
or corridor improvement capital projects, in 
accordance with subsection (f); and 
‘‘(B) the amounts made available under sec-
tion 5338(b)(4) shall be allocated for capital 
projects for buses and bus-related equipment and 
facilities. 
‘‘(3) FIXED
GUIDEWAY
MODERNIZATION.—The 
amounts made available for fixed guideway mod-
ernization under section 5338(b)(2)(K) for fiscal year 
2005 and each fiscal year thereafter shall be allocated 
in accordance with section 5337. 
‘‘(4) PRELIMINARY
ENGINEERING.—Not more 
that 8 percent of the allocation described in para-
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graphs (1)(A) and (2)(A) may be expended on pre-
liminary engineering. 
‘‘(5) FUNDING
FOR
FERRY
BOATS.—Of the 
amounts described in paragraphs (1)(A) and (2)(A), 
$10,400,000 shall be available in each of the fiscal 
years 2004 through 2009 for capital projects in Alas-
ka and Hawaii for new fixed guideway systems and 
extension projects utilizing ferry boats, ferry boat ter-
minals, or approaches to ferry boat terminals. 
‘‘(6) BUS AND BUS FACILITY GRANTS.— 
‘‘(A) CONSIDERATIONS.—In making grants 
under paragraphs (1)(C) and (2)(B), the Sec-
retary shall consider the age and condition of 
buses, bus fleets, related equipment, and bus-re-
lated facilities. 
‘‘(B) 
PROJECTS
NOT
IN
URBANIZED 
AREAS.—Of the amounts made available under 
paragraphs (1)(C) and (2)(B), not less than 5.5 
percent shall be available in each fiscal year for 
projects that are not in urbanized areas. 
‘‘(C) INTERMODAL
TERMINALS.—Of the 
amounts made available under paragraphs 
(1)(C) and (2)(B), not less than $75,000,000 
shall be available in each fiscal year for inter-
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modal terminal projects, including the intercity 
bus portion of such projects.’’. 
(k) REPORTS.—Section 5309 is amended by inserting 
at the end the following: 
‘‘(m) REPORTS.— 
‘‘(1) 
ANNUAL
REPORT
ON
FUNDING
REC-
OMMENDATIONS.— 
‘‘(A) IN GENERAL.—Not later than the first 
Monday of February of each year, the Secretary 
shall submit a report on funding recommenda-
tions to— 
‘‘(i) the Committee on Transportation 
and Infrastructure of the House of Rep-
resentatives; 
‘‘(ii) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate; 
‘‘(iii) the Subcommittee on Transpor-
tation of the Committee on Appropriations 
of the House of Representatives; and 
‘‘(iv) the Subcommittee on Transpor-
tation of the Committee on Appropriations 
of the Senate. 
‘‘(B) CONTENTS.—The report submitted 
under subparagraph (A) shall contain—
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‘‘(i) a proposal on the allocation of 
amounts to finance grants for capital in-
vestment projects among grant applicants; 
‘‘(ii) a recommendation of projects to 
be funded based on— 
‘‘(I) the evaluations and ratings 
determined under subsection (e) and 
(f); and 
‘‘(II) existing commitments and 
anticipated funding levels for the sub-
sequent 3 fiscal years; and 
‘‘(iii) detailed ratings and evaluations 
on each project recommended for funding. 
‘‘(2) TRIENNIAL
REPORTS
ON
PROJECT
RAT-
INGS.— 
‘‘(A) IN GENERAL.—Not later than the first 
Monday of February, the first Monday of June, 
and the first Monday of October of each year, the 
Secretary shall submit a report on project rat-
ings to— 
‘‘(i) the Committee on Transportation 
and Infrastructure of the House of Rep-
resentatives; 
‘‘(ii) the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate;
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HR 3550 EAS 
‘‘(iii) the Subcommittee on Transpor-
tation of the Committee on Appropriations 
of the House of Representatives; and 
‘‘(iv) the Subcommittee on Transpor-
tation of the Committee on Appropriations 
of the Senate. 
‘‘(B) CONTENTS.—Each report submitted 
under subparagraph (A) shall contain— 
‘‘(i) a summary of the ratings of all 
capital investment projects for which fund-
ing was requested under this section; 
‘‘(ii) detailed ratings and evaluations 
on the project of each applicant that had 
significant changes to the finance or project 
proposal or has completed alternatives anal-
ysis or preliminary engineering since the 
date of the latest report; and 
‘‘(iii) all relevant information sup-
porting the evaluation and rating of each 
updated project, including a summary of 
the financial plan of each updated project. 
‘‘(3) BEFORE AND AFTER STUDY REPORTS.—Not 
later than the first Monday of August of each year, 
the Secretary shall submit a report containing a sum-
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mary of the results of the studies conducted under 
subsection (g)(2) to— 
‘‘(A) the Committee on Transportation and 
Infrastructure of the House of Representatives; 
‘‘(B) the Committee on Banking, Housing, 
and Urban Affairs of the Senate; 
‘‘(C) the Subcommittee on Transportation 
of the Committee on Appropriations of the House 
of Representatives; and 
‘‘(D) the Subcommittee on Transportation 
of the Committee on Appropriations of the Sen-
ate. 
‘‘(4) CONTRACTOR
PERFORMANCE
ASSESSMENT 
REPORT.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the enactment of the Federal Public 
Transportation Act of 2004, and each year there-
after, the Secretary shall submit a report ana-
lyzing the consistency and accuracy of cost and 
ridership estimates made by each contractor to 
public transportation agencies developing major 
investment projects to the committees and sub-
committees listed under paragraph (3). 
‘‘(B) CONTENTS.—The report submitted 
under subparagraph (A) shall compare the cost
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and ridership estimates made at the time 
projects are approved for entrance into prelimi-
nary engineering with— 
‘‘(i) estimates made at the time 
projects are approved for entrance into final 
design; 
‘‘(ii) costs and ridership when the 
project commences revenue operation; and 
‘‘(iii) costs and ridership when the 
project has been in operation for 2 years. 
‘‘(5) ANNUAL GENERAL ACCOUNTING OFFICE RE-
VIEW.— 
‘‘(A) REVIEW.—The Comptroller General of 
the United States shall conduct an annual re-
view of the processes and procedures for evalu-
ating and rating projects and recommending 
projects and the Secretary’s implementation of 
such processes and procedures. 
‘‘(B) REPORT.—Not later than 90 days 
after the submission of each report required 
under paragraph (1), the Comptroller General 
shall submit a report to Congress that summa-
rizes the results of the review conducted under 
subparagraph (A).
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‘‘(6) CONTRACTOR PERFORMANCE INCENTIVE RE-
PORT.—Not later than 180 days after the enactment 
of the Federal Public Transportation Act of 2004, the 
Secretary shall submit a report to the committees and 
subcommittees listed under paragraph (3) on the suit-
ability of allowing contractors to public transpor-
tation agencies that undertake major capital invest-
ments under this section to receive performance incen-
tive awards if a project is completed for less than the 
original estimated cost.’’. 
SEC. 3012. NEW FREEDOM FOR ELDERLY PERSONS AND 
PERSONS WITH DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended to read 
as follows: 
‘‘§ 5310. New freedom for elderly persons and persons 
with disabilities 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) 
AUTHORIZATION.—The 
Secretary 
may 
award grants to a State for capital public transpor-
tation projects that are planned, designed, and car-
ried out to meet the needs of elderly individuals and 
individuals with disabilities, with priority given to 
the needs of these individuals to access necessary 
health care.
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‘‘(2) ACQUISITION OF PUBLIC TRANSPORTATION 
SERVICES.—A capital public transportation project 
under this section may include acquiring public 
transportation services as an eligible capital expense. 
‘‘(3) ADMINISTRATIVE COSTS.—A State may use 
not more than 15 percent of the amounts received 
under this section to administer, plan, and provide 
technical assistance for a project funded under this 
section. 
‘‘(b) ALLOTMENTS AMONG STATES.— 
‘‘(1) IN GENERAL.—From amounts made avail-
able or appropriated in each fiscal year under sub-
sections (a)(1)(C)(iv) and (b)(2)(D) of section 5338 
for grants under this section, the Secretary shall allot 
amounts to each State under a formula based on the 
number of elderly individuals and individuals with 
disabilities in each State. 
‘‘(2) TRANSFER OF FUNDS.—Any funds allotted 
to a State under paragraph (1) may be transferred by 
the State to the apportionments made under sections 
5311(c) and 5336 if such funds are only used for eli-
gible projects selected under this section. 
‘‘(3) REALLOCATION OF FUNDS.—A State receiv-
ing a grant under this section may reallocate such 
grant funds to—
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‘‘(A) a private nonprofit organization; 
‘‘(B) a public transportation agency or au-
thority; or 
‘‘(C) a governmental authority that— 
‘‘(i) has been approved by the State to 
coordinate services for elderly individuals 
and individuals with disabilities; 
‘‘(ii) certifies that nonprofit organiza-
tions are not readily available in the area 
that can provide the services described 
under this subsection; or 
‘‘(iii) will provide services to persons 
with disabilities that exceed those services 
required by the Americans with Disabilities 
Act. 
‘‘(c) FEDERAL SHARE.— 
‘‘(1) MAXIMUM.— 
‘‘(A) IN GENERAL.—A grant for a capital 
project under this section may not exceed 80 per-
cent of the net capital costs of the project, as de-
termined by the Secretary. 
‘‘(B) EXCEPTION.—A State described in sec-
tion 120(d) of title 23 shall receive an increased 
Federal share in accordance with the formula 
under that section.
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‘‘(2) REMAINING COSTS.—The costs of a capital 
project under this section that are not funded through 
a grant under this section— 
‘‘(A) may be funded from an undistributed 
cash surplus, a replacement or depreciation cash 
fund or reserve, a service agreement with a State 
or local social service agency or a private social 
service organization, or new capital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to any Federal 
agency (other than the Department of Transpor-
tation, except for Federal Lands Highway funds) 
that are eligible to be expended for transpor-
tation. 
‘‘(3) EXCEPTION.—For purposes of paragraph 
(2), the prohibitions on the use of funds for matching 
requirements under section 403(a)(5)(C)(vii) of the 
Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) 
shall not apply to Federal or State funds to be used 
for transportation purposes. 
‘‘(d) GRANT REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A grant recipient under this 
section shall be subject to the requirements of a grant 
recipient under section 5307 to the extent the Sec-
retary determines to be appropriate.
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‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) FUND TRANSFERS.—A grant recipient 
under this section that transfers funds to a 
project funded under section 5336 in accordance 
with subsection (b)(2) shall certify that the 
project for which the funds are requested has 
been coordinated with private nonprofit pro-
viders of services under this section. 
‘‘(B) PROJECT SELECTION AND PLAN DE-
VELOPMENT.—Each grant recipient under this 
section shall certify that— 
‘‘(i) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; 
and 
‘‘(ii) the plan was developed through a 
process that included representatives of pub-
lic, private, and nonprofit transportation 
and human services providers and partici-
pation by the public. 
‘‘(C) ALLOCATIONS
TO
SUBRECIPIENTS.— 
Each grant recipient under this section shall cer-
tify that allocations of the grant to subrecipients, 
if any, are distributed on a fair and equitable 
basis.
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‘‘(e) STATE PROGRAM OF PROJECTS.— 
‘‘(1) SUBMISSION TO SECRETARY.—Each State 
shall annually submit a program of transportation 
projects to the Secretary for approval with an assur-
ance that the program provides for maximum feasible 
coordination between transportation services funded 
under this section and transportation services assisted 
by other Federal sources. 
‘‘(2) USE
OF
FUNDS.—Each State may use 
amounts made available to carry out this section to 
provide transportation services for elderly individuals 
and individuals with disabilities if such services are 
included in an approved State program of projects. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authorities 
to improve transportation services designed to meet the 
needs of elderly individuals and individuals with disabil-
ities. 
‘‘(g) MEAL DELIVERY
FOR HOMEBOUND INDIVID-
UALS.—Public transportation service providers receiving 
assistance under this section or section 5311(c) may coordi-
nate and assist in regularly providing meal delivery service 
for homebound individuals if the delivery service does not 
conflict with providing public transportation service or re-
duce service to public transportation passengers.
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HR 3550 EAS 
‘‘(h) TRANSFERS OF FACILITIES AND EQUIPMENT.— 
With the consent of the recipient in possession of a facility 
or equipment acquired with a grant under this section, a 
State may transfer the facility or equipment to any recipi-
ent eligible to receive assistance under this chapter if the 
facility or equipment will continue to be used as required 
under this section. 
‘‘(i) FARES NOT REQUIRED.—This section does not re-
quire that elderly individuals and individuals with disabil-
ities be charged a fare.’’. 
(b) CONFORMING AMENDMENT.—The item relating to 
section 5310 in the table of sections for chapter 53 is amend-
ed to read as follows: 
‘‘5310. New freedom for elderly persons and persons with disabilities.’’. 
SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—As used in this section, the fol-
lowing definitions shall apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State or Indian tribe that receives a Federal transit 
program grant directly from the Federal Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, a 
nonprofit organization, or a private operator of pub-
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HR 3550 EAS 
lic transportation or intercity bus service that receives 
Federal transit program grant funds indirectly 
through a recipient.’’. 
(b) GENERAL AUTHORITY.—Section 5311(b) is amend-
ed— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) GRANTS AUTHORIZED.—Except as provided 
under paragraph (2), the Secretary may award 
grants under this section to recipients located in 
areas other than urbanized areas for— 
‘‘(A) public transportation capital projects; 
‘‘(B) operating costs of equipment and fa-
cilities for use in public transportation; and 
‘‘(C) the acquisition of public transpor-
tation services.’’; 
(2) by redesignating paragraph (2) as para-
graph (3); 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) STATE PROGRAM.— 
‘‘(A) IN GENERAL.—A project eligible for a 
grant under this section shall be included in a 
State program for public transportation service
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HR 3550 EAS 
projects, including agreements with private pro-
viders of public transportation service. 
‘‘(B) SUBMISSION
TO
SECRETARY.—Each 
State shall annually submit the program de-
scribed in subparagraph (A) to the Secretary. 
‘‘(C) APPROVAL.—The Secretary may not 
approve the program unless the Secretary deter-
mines that— 
‘‘(i) the program provides a fair dis-
tribution of amounts in the State; and 
‘‘(ii) the program provides the max-
imum feasible coordination of public trans-
portation service assisted under this section 
with transportation service assisted by other 
Federal sources.’’; 
(4) in paragraph (3), as redesignated— 
(A) by striking ‘‘(3) The Secretary of 
Transportation’’ and inserting the following: 
‘‘(3) RURAL TRANSPORTATION ASSISTANCE PRO-
GRAM.— 
‘‘(A) ESTABLISHMENT.—The Secretary’’; 
(B) by striking ‘‘make’’ and inserting ‘‘use 
not more than 2 percent of the amount made 
available to carry out this section to award’’; 
and
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HR 3550 EAS 
(C) by adding at the end the following: 
‘‘(B) DATA COLLECTION.— 
‘‘(i) REPORT.—Each grantee under 
this section shall submit an annual report 
to the Secretary containing information on 
capital investment, operations, and service 
provided with funds received under this sec-
tion, including— 
‘‘(I) total annual revenue; 
‘‘(II) sources of revenue; 
‘‘(III) 
total 
annual 
operating 
costs; 
‘‘(IV) total annual capital costs; 
‘‘(V) fleet size and type, and re-
lated facilities; 
‘‘(VI) revenue vehicle miles; and 
‘‘(VII) ridership.’’; and 
(5) by adding after paragraph (3) the following: 
‘‘(4) Of the amount made available to carry out 
paragraph (3)— 
‘‘(A) not more than 15 percent may be used 
to carry out projects of a national scope; and 
‘‘(B) any amounts not used under subpara-
graph (A) shall be allocated to the States.’’.
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HR 3550 EAS 
(c) APPORTIONMENTS.—Section 5311(c) is amended to 
read as follows: 
‘‘(c) APPORTIONMENTS.— 
‘‘(1) PUBLIC TRANSPORTATION ON INDIAN RES-
ERVATIONS.—Of the amounts made available or ap-
propriated for each fiscal year pursuant to sub-
sections (a)(1)(C)(v) and (b)(2)(F) of section 5338, 
the following amounts shall be apportioned for grants 
to Indian tribes for any purpose eligible under this 
section, under such terms and conditions as may be 
established by the Secretary: 
‘‘(A) $6,000,000 for fiscal year 2005. 
‘‘(B) $8,000,000 for fiscal year 2006. 
‘‘(C) $10,000,000 for fiscal year 2007. 
‘‘(D) $12,000,000 for fiscal year 2008. 
‘‘(E) $15,000,000 for fiscal year 2009. 
‘‘(2) REMAINING
AMOUNTS.—Of the amounts 
made available or appropriated for each fiscal year 
pursuant to subsections (a)(1)(C)(v) and (b)(2)(F) of 
section 5338 that are not apportioned under para-
graph (1)— 
‘‘(A) 20 percent shall be apportioned to the 
States in accordance with paragraph (3); and 
‘‘(B) 80 percent shall be apportioned to the 
States in accordance with paragraph (4).
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HR 3550 EAS 
‘‘(3) APPORTIONMENTS BASED ON LAND AREA IN 
NONURBANIZED AREAS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), each State shall receive an amount 
that is equal to the amount apportioned under 
paragraph (2)(A) multiplied by the ratio of the 
land area in areas other than urbanized areas in 
that State and divided by the land area in all 
areas other than urbanized areas in the United 
States, as shown by the most recent decennial 
census of population. 
‘‘(B) MAXIMUM APPORTIONMENT.—No State 
shall receive more than 5 percent of the amount 
apportioned under this paragraph. 
‘‘(4) APPORTIONMENTS BASED ON POPULATION 
IN NONURBANIZED AREAS.—Each State shall receive 
an amount equal to the amount apportioned under 
paragraph (2)(B) multiplied by the ratio of the popu-
lation of areas other than urbanized areas in that 
State divided by the population of all areas other 
than urbanized areas in the United States, as shown 
by the most recent decennial census of population.’’. 
(d) USE FOR ADMINISTRATIVE, PLANNING, AND TECH-
NICAL ASSISTANCE.—Section 5311(e) is amended—
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HR 3550 EAS 
(1) by striking ‘‘AND TECHNICAL ASSISTANCE.— 
(1) The Secretary of Transportation’’ and inserting ‘‘, 
PLANNING, AND TECHNICAL ASSISTANCE.—The Sec-
retary’’; 
(2) by striking ‘‘to a recipient’’; and 
(3) by striking paragraph (2). 
(e) 
INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘(1)’’ and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—’’; and 
(B) by striking ‘‘after September 30, 1993,’’; 
and 
(2) in paragraph (2)— 
(A) by striking ‘‘A State’’ and inserting 
‘‘After consultation with affected intercity bus 
service providers, a State’’; and 
(B) by striking ‘‘of Transportation’’. 
(f) FEDERAL SHARE OF COSTS.—Section 5311(g) is 
amended to read as follows: 
‘‘(g) FEDERAL SHARE OF COSTS.— 
‘‘(1) MAXIMUM FEDERAL SHARE.— 
‘‘(A) CAPITAL PROJECTS.—
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HR 3550 EAS 
‘‘(i) IN GENERAL.—Except as provided 
under clause (ii), a grant awarded under 
this section for any purpose other than op-
erating assistance may not exceed 80 per-
cent of the net capital costs of the project, 
as determined by the Secretary. 
‘‘(ii) EXCEPTION.—A State described 
in section 120(d) of title 23 shall receive a 
Federal share of the net capital costs in ac-
cordance with the formula under that sec-
tion. 
‘‘(B) OPERATING ASSISTANCE.— 
‘‘(i) IN GENERAL.—Except as provided 
under clause (ii), a grant made under this 
section for operating assistance may not ex-
ceed 50 percent of the net operating costs of 
the project, as determined by the Secretary. 
‘‘(ii) EXCEPTION.—A State described 
in section 120(d) of title 23 shall receive a 
Federal share of the net operating costs 
equal to 62.5 percent of the Federal share 
provided for under subparagraph (A)(ii). 
‘‘(2) OTHER FUNDING SOURCES.—Funds for a 
project under this section that are not provided for by 
a grant under this section—
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HR 3550 EAS 
‘‘(A) may be provided from— 
‘‘(i) an undistributed cash surplus; 
‘‘(ii) a replacement or depreciation 
cash fund or reserve; 
‘‘(iii) a service agreement with a State 
or local social service agency or a private 
social service organization; or 
‘‘(iv) new capital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a Federal agency 
(other than the Department of Transportation, 
except for Federal Land Highway funds) that 
are eligible to be expended for transportation. 
‘‘(3) USE OF FEDERAL GRANT.—A State car-
rying out a program of operating assistance under 
this section may not limit the level or extent of use 
of the Federal grant for the payment of operating ex-
penses. 
‘‘(4) EXCEPTION.—For purposes of paragraph 
(2)(B), the prohibitions on the use of funds for match-
ing requirements under section 403(a)(5)(c)(vii) of 
the Social Security Act (42 U.S.C. 603(a)(5)(c)(vii)) 
shall not apply to Federal or State funds to be used 
for transportation purposes.’’.
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HR 3550 EAS 
(g) 
WAIVER
CONDITION.—Section 
5311(j)(1) 
is 
amended by striking ‘‘but the Secretary of Labor may waive 
the application of section 5333(b)’’ and inserting ‘‘if the 
Secretary of Labor utilizes a Special Warranty that pro-
vides a fair and equitable arrangement to protect the inter-
ests of employees’’. 
SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESEARCH, DEVELOPMENT, AND DEMONSTRA-
TION PROJECTS.— 
‘‘(1) IN
GENERAL.—The Secretary may make 
grants, contracts, cooperative agreements, or other 
transactions (including agreements with departments, 
agencies, and instrumentalities of the United States 
Government) for research, development, demonstration 
or deployment projects, or evaluation of technology of 
national significance to public transportation that the 
Secretary determines will improve public transpor-
tation service or help public transportation service 
meet the total transportation needs at a minimum 
cost.
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‘‘(2) INFORMATION.—The Secretary may request 
and receive appropriate information from any source. 
‘‘(3) SAVINGS PROVISION.—This subsection does 
not limit the authority of the Secretary under any 
other law.’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
(b) and (c), respectively. 
(4) in subsection (b), as redesignated— 
(A) in paragraph (2), by striking ‘‘other 
agreements’’ and inserting ‘‘other transactions’’; 
and 
(B) in paragraph (5), by striking ‘‘within 
the Mass Transit Account of the Highway Trust 
Fund’’; and 
(5) in subsection (c), as redesignated— 
(A) in paragraph (2), by striking ‘‘public 
and private’’ and inserting ‘‘public or private’’; 
and 
(B) in paragraph (3), by striking ‘‘within 
the Mass Transit Account of the Highway Trust 
Fund’’ . 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION HEADING.—The heading of section 
5312 is amended to read as follows:
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‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) TABLE OF SECTIONS.—The item relating to 
section 5312 in the table of sections for chapter 53 is 
amended to read as follows: 
‘‘5312. Research, development, demonstration, and deployment projects.’’. 
SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended— 
(1) by striking subsection (b); 
(2) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘(1) The 
amounts made available under paragraphs (1) 
and (2)C)(ii) of section 5338(c) of this title’’ and 
inserting ‘‘The amounts made available under 
subsections (a)(5)(C)(iii) and (b)(2)(G)(i) of sec-
tion 5338’’; and 
(B) in paragraph (2), by striking ‘‘(2)’’ and 
inserting the following: 
‘‘(b) FEDERAL ASSISTANCE.—’’; and 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) FEDERAL SHARE.—If there would be a clear and 
direct financial benefit to an entity under a grant or con-
tract financed under this section, the Secretary shall estab-
lish a Federal share consistent with such benefit.’’. 
(b) CONFORMING AMENDMENTS.—
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(1) SECTION HEADING.—The heading of section 
5313 is amended to read as follows: 
‘‘§ 5313. Transit cooperative research program’’. 
(2) TABLE OF SECTIONS.—The item relating to 
section 5313 in the table of sections for chapter 53 is 
amended to read as follows: 
‘‘5313. Transit cooperative research program.’’. 
SEC. 3016. NATIONAL RESEARCH PROGRAMS. 
(a) IN GENERAL.—Section 5314 is amended— 
(1) in subsection (a)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) AVAILABILITY
OF
FUNDS.—The Secretary 
may use amounts made available under subsections 
(a)(5)(C)(iv) and (b)(2)(G)(iv) of section 5338 for 
grants, contracts, cooperative agreements, or other 
transactions for the purposes described in sections 
5312, 5315, and 5322.’’; 
(B) in paragraph (2), by striking ‘‘(2) Of’’ 
and inserting the following: 
‘‘(2) ADA COMPLIANCE.—From’’; 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) SPECIAL
DEMONSTRATION
INITIATIVES.— 
The Secretary may use not more than 25 percent of 
the amounts made available under paragraph (1) for
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‘‘(a) APPLICATION.—This section shall only apply to— 
‘‘(1) States that have rail fixed guideway public 
transportation systems that are not subject to regula-
tion by the Federal Railroad Administration; and 
‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be 
subjected to regulation by the Federal Railroad Ad-
ministration.’’; 
(3) in subsection (d), by striking ‘‘affected 
States’’ and inserting the following: ‘‘affected States— 
‘‘(1) shall ensure uniform safety standards and 
enforcement; or 
‘‘(2) may designate’’; and 
(4) in subsection (f), by striking ‘‘Not later than 
December 18, 1992, the’’ and inserting ‘‘The’’. 
(b) CONFORMING AMENDMENT.—The item relating to 
section 5330 in the table of sections for chapter 53 is amend-
ed to read as follows: 
‘‘5330. Withholding amounts for noncompliance with State safety oversight re-
quirements.’’. 
SEC. 3029. SENSITIVE SECURITY INFORMATION. 
Section 40119(b) is amended— 
(1) in paragraph (1)(C), by inserting ‘‘, trans-
portation facilities or infrastructure, or transpor-
tation employees’’ before the period at the end; and 
(2) by adding at the end the following:
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‘‘exceed 11⁄6 percent of all sums so made available, as 
the Secretary determines necessary—’’; 
(2) by redesignating clause (i) and (ii) of sub-
paragraph (A) as subparagraphs (A) and (B), and 
indenting such clauses, as so redesignated, 2 em 
spaces; and 
(3) by striking ‘‘system; and’’ in subparagraph 
(B) as so redesignated, and all that follows through 
‘‘research.’’ and inserting ‘‘system.’’. 
(c) GRANT PROGRAMS.—There are authorized to be ap-
propriated from the Highway Trust Fund (other than the 
Mass Transit Account) for the following Federal Motor Car-
rier Safety Administration programs: 
(1) Border enforcement grants under section 
31107 of title 49, United States Code— 
(A) $32,000,000 for fiscal year 2004; 
(B) $33,000,000 for fiscal year 2005; 
(C) $33,000,000 for fiscal year 2006; 
(D) $34,000,000 for fiscal year 2007; 
(E) $35,000,000 for fiscal year 2008; and 
(F) $36,000,000 for fiscal year 2009. 
(2) Performance and registration information 
system management grant program under 31109 of 
title 49, United States Code— 
(A) $4,000,000 for fiscal year 2004;
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(B) $4,000,000 for fiscal year 2005; 
(C) $4,000,000 for fiscal year 2006; 
(D) $4,000,000 for fiscal year 2007; 
(E) $4,000,000 for fiscal year 2008; and 
(F) $4,000,000 for fiscal year 2009. 
(3) Commercial driver’s license and driver im-
provement program grants under section 31318 of 
title 49, United States Code— 
(A) $22,000,000 for fiscal year 2004; 
(B) $22,000,000 for fiscal year 2005; 
(C) $23,000,000 for fiscal year 2006; 
(D) $23,000,000 for fiscal year 2007; 
(E) $24,000,000 for fiscal year 2008; and 
(F) $25,000,000 for fiscal year 2009. 
(4) Deployment of the Commercial Vehicle Infor-
mations Systems and Networks established under sec-
tion 4241 of this title, $25,000,000 for each of fiscal 
years 2004 through 2009. 
(d) MOTOR CARRIER SAFETY ACCOUNT.—Funds made 
available under subsection (c) shall be administered in the 
account established in the Treasury entitled ‘‘Motor Carrier 
Safety 69–8055–0–7–401’’. 
(e) PERIOD OF AVAILABILITY.—The amounts made 
available under subsection (c) of this section shall remain 
available until expended.