II 
Calendar No. 473 
108TH CONGRESS 
2D SESSION 
H. R. 3550 
IN THE SENATE OF THE UNITED STATES 
APRIL 8, 2004 
Received 
APRIL 22, 2004 
Read twice and placed on the calendar 
AN ACT 
To authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE, TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Transportation Equity Act: A Legacy for Users’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, table of contents. 
TITLE I—FEDERAL-AID HIGHWAYS 
Subtitle A—Authorization of Programs 
Sec. 1101. Authorizations of appropriations. 
Sec. 1102. Obligation ceiling. 
Sec. 1103. Apportionments. 
Sec. 1104. Minimum guarantee. 
Sec. 1105. Project approval and oversight. 
Sec. 1106. Temporary traffic control devices. 
Sec. 1107. Revenue aligned budget authority. 
Sec. 1108. Emergency relief. 
Sec. 1109. Surface transportation program. 
Sec. 1110. Highway use tax evasion projects. 
Sec. 1111. Appalachian development highway system. 
Sec. 1112. Construction of ferry boats and ferry terminal facilities. 
Sec. 1113. Interstate maintenance discretionary. 
Sec. 1114. Highway bridge. 
Sec. 1115. Transportation and community and system preservation program. 
Sec. 1116. Deployment of magnetic levitation transportation projects. 
Sec. 1117. Recreational trails. 
Sec. 1118. Federal lands Highways. 
Sec. 1119. Conservation measures. 
Sec. 1120. Pedestrian and cyclist equity. 
Sec. 1121. National commissions. 
Sec. 1122. Adjustments for the Surface Transportation Extension Act of 2003. 
Sec. 1123. Roadway safety. 
Sec. 1124. Equity requirement. 
Subtitle B—Congestion Relief 
Sec. 1201. Motor vehicle congestion relief. 
Sec. 1202. Transportation systems management and operations. 
Sec. 1203. Real-time system management information program. 
Sec. 1204. Expedited national intelligent transportation systems deployment 
program. 
Sec. 1205. Intelligent transportation systems deployment. 
Sec. 1206. Environmental review of activities that support deployment of intel-
ligent transportation systems. 
Sec. 1207. State assumption of responsibility for certain programs and projects. 
Sec. 1208. Repeal. 
Sec. 1209. Congestion pricing pilot program. 
Subtitle C—Mobility and Efficiency
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Sec. 1301. National corridor infrastructure improvement program. 
Sec. 1302. Coordinated border infrastructure program. 
Sec. 1303. Freight intermodal connectors. 
Sec. 1304. Projects of national and regional significance. 
Sec. 1305. Dedicated truck lanes. 
Sec. 1306. Truck parking facilities. 
Subtitle D—Highway Safety 
Sec. 1401. Highway safety improvement program. 
Sec. 1402. Worker injury prevention and free flow of vehicular traffic. 
Sec. 1403. High risk rural road safety improvement program. 
Sec. 1404. Transfers of apportionments to safety programs. 
Sec. 1405. Safety incentive grants for use of seat belts. 
Sec. 1406. Safety incentives to prevent operation of motor vehicles by intoxi-
cated persons. 
Sec. 1407. Repeat offenders for driving while intoxicated. 
Sec. 1408. Repair or replacement of highway features on National Highway 
System. 
Subtitle E—Construction and Contract Efficiencies 
Sec. 1501. Design–build. 
Sec. 1502. Warranty Highway Construction Project Pilot Program. 
Sec. 1503. Private investment study. 
Sec. 1504. Highways for LIFE pilot program. 
Subtitle F—Finance 
Sec. 1601. Transportation Infrastructure Finance and Innovation Act. 
Sec. 1602. State infrastructure banks. 
Sec. 1603. FAST fees. 
Sec. 1604. Toll feasibility. 
Sec. 1605. Use of excess funds. 
Subtitle G—High Priority Projects 
Sec. 1701. High priority projects program. 
Sec. 1702. Project authorizations. 
Subtitle H—Miscellaneous Provisions 
Sec. 1801. Budget justification. 
Sec. 1802. Motorist Information. 
Sec. 1803. Motorist information concerning full service restaurants. 
Sec. 1804. High priority corridors on the National Highway System. 
Sec. 1805. Additions to Appalachian region. 
Sec. 1806. Transportation assets and needs of Delta region. 
Sec. 1807. Toll facilities workplace safety study. 
Sec. 1808. Pavement Marking Systems Demonstration Projects. 
Sec. 1809. Work zone safety grants. 
Sec. 1810. Grant program to prohibit racial profiling. 
Sec. 1811. America’s Byways Resource Center. 
Sec. 1812. Technical adjustment. 
Sec. 1813. Road User Charge Evaluation Pilot Project. 
Sec. 1814. Thomas P. ‘‘Tip’’ O’Neill, Jr. Tunnel. 
Sec. 1815. Conforming amendment for transportation planning sections.
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Sec. 1816. Distribution of metropolitan planning funds within States. 
Sec. 1817. Treatment of off ramp. 
Sec. 1818. Loan forgiveness. 
Sec. 1819. Lead agency designation. 
Sec. 1820. Use of debris from demolished bridges and overpasses. 
Sec. 1821. Hubzone program. 
Sec. 1822. Technical amendments to TEA 21 projects. 
Sec. 1823. National work zone safety information clearinghouse. 
Sec. 1824. Transportation conformity. 
Sec. 1825. Eligibility to participate in Western Alaska Community Development 
Quota Program. 
Sec. 1826. Metropolitan Regional Freight and Passenger Transportation Study. 
Sec. 1827. Intermodal transportation facility expansion. 
Sec. 1828. Advanced truck stop electrification system. 
Sec. 1829. Technology. 
Sec. 1830. Extension of public transit vehicle exemption from axle weight re-
strictions. 
Sec. 1831. Sense of Congress. 
TITLE II—HIGHWAY SAFETY 
Sec. 2001. Authorization of appropriations. 
Sec. 2002. Occupant protection incentive grants. 
Sec. 2003. Alcohol-impaired driving countermeasures. 
Sec. 2004. State traffic safety information system improvements. 
Sec. 2005. High visibility enforcement program. 
Sec. 2006. Motorcycle crash causation study. 
Sec. 2007. Child safety and child booster seat incentive grants. 
Sec. 2008. Safety data. 
Sec. 2009. Motorcyclist safety. 
Sec. 2010. Driver fatigue. 
Sec. 2011. Drug impaired driving enforcement. 
TITLE III—FEDERAL TRANSIT ADMINISTRATION PROGRAMS 
Sec. 3001. Short title; amendments to title 49, United States Code. 
Sec. 3002. Policies, findings, and purposes. 
Sec. 3003. Definitions. 
Sec. 3004. Metropolitan planning. 
Sec. 3005. Statewide planning. 
Sec. 3006. Planning programs. 
Sec. 3007. Private enterprise participation. 
Sec. 3008. Urbanized area formula grants. 
Sec. 3009. Clean fuels formula grant program. 
Sec. 3010. Capital investment grants. 
Sec. 3011. Formula grants for special needs of elderly individuals and individ-
uals with disabilities. 
Sec. 3012. Formula grants for other than urbanized areas. 
Sec. 3013. Research, development, demonstration, and deployment projects. 
Sec. 3014. Cooperative research program. 
Sec. 3015. National research and technology programs. 
Sec. 3016. National Transit Institute. 
Sec. 3017. Job access and reverse commute formula grants. 
Sec. 3018. New Freedom program. 
Sec. 3019. Bus testing facility. 
Sec. 3020. Bicycle facilities.
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Sec. 3021. Transit in the parks pilot program. 
Sec. 3022. Human resource programs. 
Sec. 3023. General provisions on assistance. 
Sec. 3024. Special provisions for capital projects. 
Sec. 3025. Contract requirements. 
Sec. 3026. Project management oversight and review. 
Sec. 3027. Investigations of safety and hazards. 
Sec. 3028. State safety oversight. 
Sec. 3029. Controlled substances and alcohol misuse testing. 
Sec. 3030. Employee protective arrangements. 
Sec. 3031. Administrative procedures. 
Sec. 3032. National transit database. 
Sec. 3033. Apportionments based on fixed guideway factors. 
Sec. 3034. Authorizations. 
Sec. 3035. Over-the-road bus accessibility program. 
Sec. 3036. Updated terminology. 
Sec. 3037. Project authorizations for new fixed guideway capital projects. 
Sec. 3038. Projects for bus and bus-related facilities. 
Sec. 3039. National fuel cell bus technology development program. 
Sec. 3040. High-intensity small-urbanized area formula grant program. 
Sec. 3041. Allocations for national research and technology programs. 
Sec. 3042. Obligation ceiling. 
Sec. 3043. Adjustments for the Surface Transportation Extension Act of 2004. 
Sec. 3044. Cooperative procurement. 
TITLE IV—MOTOR CARRIER TRANSPORTATION AND SAFETY 
Subtitle A—Commercial Motor Vehicle Safety 
Sec. 4101. Authorization of appropriations. 
Sec. 4102. Motor carrier safety grants. 
Sec. 4103. Border enforcement grants. 
Sec. 4104. Commercial driver’s license improvements. 
Sec. 4105. Hobbs Act. 
Sec. 4106. Penalty for denial of access to records. 
Sec. 4107. Medical Review Board. 
Sec. 4108. Increased penalties for out-of-service violations and false records. 
Sec. 4109. Commercial vehicle information systems and networks deployment. 
Sec. 4110. Safety fitness. 
Sec. 4111. Pattern of safety violations by motor carrier or broker management. 
Sec. 4112. Motor carrier research and technology program. 
Sec. 4113. International cooperation. 
Sec. 4114. Performance and registration information system management. 
Sec. 4115. Data quality improvement. 
Sec. 4116. Driveaway saddlemount vehicles. 
Sec. 4117. Completion of uniform carrier registration. 
Sec. 4118. Registration of motor carriers and freight forwarders. 
Sec. 4119. Deposit of certain civil penalties into Highway Trust Fund. 
Sec. 4120. Outreach and education. 
Sec. 4121. Insulin treated diabetes mellitus. 
Sec. 4122. Grant program for commercial motor vehicle operators. 
Sec. 4123. Commercial motor vehicle safety advisory Committee. 
Sec. 4124. Safety data improvement program. 
Sec. 4125. Commercial driver’s license information system modernization. 
Sec. 4126. Maximum hours of service for operators of ground water well drill-
ing rigs.
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Sec. 4127. Safety performance history screening. 
Sec. 4128. Intermodal chassis roadability rule-making. 
Sec. 4129. Substance abuse professionals. 
Sec. 4130. Interstate van operations. 
Sec. 4131. Hours of service for operators of utility service vehicles. 
Sec. 4132. Hours of service rules for operators providing transportation to 
movie production sites. 
Sec. 4133. Technical corrections. 
Sec. 4134. Operators of vehicles transporting agricultural commodities and 
farm supplies. 
Subtitle B—Household Goods Transportation 
Sec. 4201. Federal-State relations relating to transportation of household 
goods. 
Sec. 4202. Arbitration requirements. 
Sec. 4203. Civil penalties relating to household goods brokers and unauthorized 
transportation. 
Sec. 4204. Penalties for holding household goods hostage. 
Sec. 4205. Working group for development of practices and procedures to en-
hance Federal-State relations. 
Sec. 4206. Consumer handbook on dot Web site. 
Sec. 4207. Release of household goods broker information. 
Sec. 4208. Consumer complaint information. 
Sec. 4209. Insurance regulations. 
Sec. 4210. Estimating requirements. 
Sec. 4211. Application of State consumer protection laws to certain household 
goods carriers. 
Sec. 4212. Applicability to household goods motor carriers. 
TITLE V—TRANSPORTATION RESEARCH AND EDUCATION 
Subtitle A—Funding 
Sec. 5101. Authorization of appropriations. 
Sec. 5102. Obligation ceiling. 
Sec. 5103. Findings. 
Subtitle B—Research, Technology, and Education 
Sec. 5201. Research, technology, and education. 
Sec. 5202. Long-term bridge performance program; innovative bridge research 
and deployment program. 
Sec. 5203. Surface transportation environment and planning cooperative re-
search program. 
Sec. 5204. Technology deployment. 
Sec. 5205. Training and education. 
Sec. 5206. Freight planning capacity building. 
Sec. 5207. Advanced travel forecasting procedures program. 
Sec. 5208. National cooperative freight transportation research program. 
Sec. 5209. Future strategic highway research program. 
Sec. 5210. Transportation safety information management system project. 
Sec. 5211. Surface transportation congestion relief solutions research initiative. 
Sec. 5212. Motor carrier efficiency study. 
Sec. 5213. Transportation research and development strategic planning. 
Subtitle C—University Transportation Research; Scholarship Opportunities
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Sec. 5301. National university transportation centers. 
Sec. 5302. University transportation research. 
Sec. 5303. Transportation scholarship opportunities program. 
Subtitle D—Advanced Technologies 
Sec. 5401. Advanced heavy-duty vehicle technologies research program. 
Sec. 5402. Commercial remote sensing products and spatial information tech-
nologies. 
Subtitle E—Transportation Data and Analysis 
Sec. 5501. Bureau of Transportation Statistics. 
Subtitle F—Intelligent Transportation Systems Research 
Sec. 5601. Short title. 
Sec. 5602. Goals and purposes. 
Sec. 5603. General authorities and requirements. 
Sec. 5604. National architecture and standards. 
Sec. 5605. Research and development. 
Sec. 5606. Infrastructure development. 
Sec. 5607. Road Weather Research and Development Program. 
Sec. 5608. Definitions. 
Sec. 5609. Rural interstate corridor communications study. 
Sec. 5610. Centers for Surface Transportation Excellence. 
Sec. 5611. Repeal. 
TITLE VI—TRANSPORTATION PLANNING AND PROJECT 
DELIVERY 
Sec. 6001. Transportation planning. 
Sec. 6002. Efficient environmental reviews for project decisionmaking. 
Sec. 6003. Policy on historic sites. 
Sec. 6004. Exemption of interstate system. 
TITLE VII—HAZARDOUS MATERIALS TRANSPORTATION 
Sec. 7001. Amendment of title 49, United States Code. 
Sec. 7002. Findings and purpose. 
Sec. 7003. Definitions. 
Sec. 7004. General regulatory authority. 
Sec. 7005. Chemical or biological materials. 
Sec. 7006. Representation and tampering. 
Sec. 7007. Technical amendments. 
Sec. 7008. Training of certain employees. 
Sec. 7009. Registration. 
Sec. 7010. Providing shipping papers. 
Sec. 7011. Rail tank cars. 
Sec. 7012. Unsatisfactory safety rating. 
Sec. 7013. Training curriculum for the public sector. 
Sec. 7014. Planning and training grants, monitoring, and review. 
Sec. 7015. Special permits and exclusions. 
Sec. 7016. Uniform forms and procedures. 
Sec. 7017. International uniformity of standards and requirements. 
Sec. 7018. Administrative. 
Sec. 7019. Enforcement.
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Sec. 7020. Civil penalty. 
Sec. 7021. Criminal penalty. 
Sec. 7022. Preemption. 
Sec. 7023. Relationship to other laws. 
Sec. 7024. Judicial review. 
Sec. 7025. Authorization of appropriations. 
Sec. 7026. Determining amount of undeclared shipments of hazardous mate-
rials entering the United States. 
Sec. 7027. Conforming amendments. 
TITLE VIII—TRANSPORTATION DISCRETIONARY SPENDING 
GUARANTEE 
Sec. 8001. Discretionary spending limits for the highway and mass transit cat-
egories. 
Sec. 8002. Adjustments to align highway spending with revenues. 
Sec. 8003. Level of obligation limitations. 
Sec. 8004. Enforcement of guarantee. 
Sec. 8005. Transfer of Federal transit administrative expenses. 
TITLE IX—TAX PROVISIONS 
Sec. 9000. Short title, etc. 
Subtitle A—Highway Trust Fund Extension 
Sec. 9101. Extension of highway-related taxes and trust fund. 
Subtitle B—Restructuring of Incentives for Alcohol Fuels, Etc. 
Sec. 9201. Reduced rates of tax on gasohol replaced with excise tax credit; re-
peal of other alcohol-based fuel incentives; etc. 
Sec. 9202. Alcohol fuel subsidies borne by general fund. 
Subtitle C—Reduction of Fuel Tax Evasion 
Sec. 9301. Exemption from certain excise taxes for mobile machinery. 
Sec. 9302. Taxation of aviation-grade kerosene. 
Sec. 9303. Dye injection equipment. 
Sec. 9304. Authority to inspect on-site records. 
Sec. 9305. Registration of pipeline or vessel operators required for exemption 
of bulk transfers to registered terminals or refineries. 
Sec. 9306. Display of registration. 
Sec. 9307. Penalties for failure to register and failure to report. 
Sec. 9308. Collection from customs bond where importer not registered. 
Sec. 9309. Modifications of tax on use of certain vehicles. 
Sec. 9310. Modification of ultimate vendor refund claims with respect to farm-
ing. 
Sec. 9311. Dedication of revenues from certain penalties to the Highway Trust 
Fund. 
Subtitle D—Other Excise Tax Provisions 
Sec. 9401. Taxable fuel refunds for certain ultimate vendors. 
Sec. 9402. Two-party exchanges. 
Sec. 9403. Simplification of tax on tires. 
Subtitle E—Small Business Expensing
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Sec. 9501. 2-year extension of increased expensing for small business. 
Subtitle F—Alternative Minimum Tax Relief 
Sec. 9601. Net operating losses and foreign tax credit under alternative min-
imum tax. 
Sec. 9602. Expansion of exemption from alternative minimum tax for small 
corporations. 
Sec. 9603. Income averaging for farmers not to increase alternative minimum 
tax. 
TITLE X—RAIL PROVISIONS 
Sec. 10001. High-speed rail corridor development. 
Sec. 10002. Alaska railroad. 
TITLE I—FEDERAL-AID 
HIGHWAYS 
Subtitle A—Authorization of 
Programs 
SEC. 1101. AUTHORIZATIONS OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated from the Highway Trust Fund 
(other than the Mass Transit Account): 
(1) INTERSTATE
MAINTENANCE
PROGRAM.— 
For the Interstate maintenance program under sec-
tion 
119 
of 
title 
23, 
United 
States 
Code, 
$4,323,076,000 
for 
fiscal 
year 
2004, 
$4,431,153,000 
for 
fiscal 
year 
2005, 
$4,541,932,000 
for 
fiscal 
year, 
2006, 
$4,655,480,000 
for 
fiscal 
year 
2007, 
$4,771,867,000 
for 
fiscal 
year 
2008, 
and 
$4,891,164,000 for fiscal year 2009. 
(2) NATIONAL HIGHWAY SYSTEM.—For the Na-
tional Highway System under section 103 of that
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title, 
$5,187,691,000 
for 
fiscal 
year 
2004, 
$5,317,383,000 
for 
fiscal 
year 
2005, 
$5,450,318,000 
for 
fiscal 
year 
2006, 
$5,586,576,000 
for 
fiscal 
year 
2007, 
$5,726,240,000 
for 
fiscal 
year 
2008, 
and 
$5,869,396,000 for fiscal year 2009. 
(3) BRIDGE
PROGRAM.—For the bridge pro-
gram 
under 
section 
144 
of 
that 
title, 
$3,709,440,000 
for 
fiscal 
year 
2004, 
$3,802,176,000 
for 
fiscal 
year 
2005, 
$3,897,231,000 
for 
fiscal 
year 
2006, 
$3,994,661,000 
for 
fiscal 
year 
2007, 
$4,094,528,000 
for 
fiscal 
year 
2008, 
and 
$4,196,891,000 for fiscal year 2009. 
(4) HIGHWAY
SAFETY
IMPROVEMENT
PRO-
GRAM.—For the highway safety improvement pro-
gram under sections 130 and 152 of that title, $0 
for fiscal year 2004, $630,000,000 for fiscal year 
2005, 
$645,000,000 
for 
fiscal 
year 
2006, 
$660,000,000 for fiscal year 2007, $680,000,000 for 
fiscal year 2008, and $695,000,000 for fiscal year 
2009. Of such funds 1⁄3 per fiscal year shall be avail-
able to carry out section 130 and 2⁄3 shall be avail-
able to carry out section 152.
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(5) SURFACE
TRANSPORTATION
PROGRAM.— 
For the surface transportation program under sec-
tion 133 of that title, $6,052,306,000 for fiscal year 
2004, 
$6,203,614,000 
for 
fiscal 
year 
2005, 
$6,358,704,000 
for 
fiscal 
year 
2006, 
$6,517,672,000 
for 
fiscal 
year 
2007, 
$6,680,614,000 
for 
fiscal 
year 
2008, 
and 
$6,847,629,000 for fiscal year 2009. 
(6) CONGESTION MITIGATION AND AIR QUALITY 
IMPROVEMENT PROGRAM.—For the congestion miti-
gation and air quality improvement program under 
section 149 of that title, $1,469,846,000 for fiscal 
year 2004, $1,506,592,000 for fiscal year 2005, 
$1,544,257,000 
for 
fiscal 
year 
2006, 
$1,582,863,000 
for 
fiscal 
year 
2007, 
$1,622,435,000 
for 
fiscal 
year 
2008, 
and 
$1,662,996,000 for fiscal year 2009. 
(7) APPALACHIAN
DEVELOPMENT
HIGHWAY 
SYSTEM PROGRAM.—For the Appalachian develop-
ment highway system program under section 14501 
of title 40, United States Code, $460,000,000 for 
fiscal year 2004 and $470,000,000 for each of fiscal 
years 2005 through 2009. 
(8) RECREATIONAL TRAILS PROGRAM.—For the 
recreational trails program under section 206 of title
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23, United States Code, $53,000,000 for fiscal year 
2004, 
$70,000,000 
for 
fiscal 
year 
2005, 
$80,000,000 for fiscal year 2006, $90,000,000 for 
fiscal year 2007, $100,000,000 for fiscal year 2008, 
and $110,000,000 for fiscal year 2009. 
(9) FEDERAL LANDS HIGHWAYS PROGRAM.— 
(A) INDIAN
RESERVATION
ROADS.—For 
Indian reservation roads under section 204 of 
title 23, United States Code, $325,000,000 for 
fiscal year 2004, $365,000,000 for fiscal year 
2005, $390,000,000 for fiscal year 2006, 
$395,000,000 
for 
fiscal 
year 
2007, 
$420,000,000 
for 
fiscal 
year 
2008, 
and 
$420,000,000 for fiscal year 2009. 
(B) PARK
ROADS
AND
PARKWAYS.—For 
park roads and parkways roads under section 
204 of that title, $170,000,000 for fiscal year 
2004, $185,000,000 for fiscal year 2005, 
$200,000,000 
for 
fiscal 
year 
2006, 
$215,000,000 
for 
fiscal 
year 
2007, 
$225,000,000 
for 
fiscal 
year 
2008, 
and 
$225,000,000 for fiscal year 2009. 
(C) PUBLIC LANDS HIGHWAY.—For public 
lands highway under section 204 of that title, 
$250,000,000 
for 
fiscal 
year 
2004,
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$260,000,000 
for 
fiscal 
year 
2005, 
$280,000,000 
for 
fiscal 
year 
2006, 
$280,000,000 
for 
fiscal 
year 
2007, 
$290,000,000 
for 
fiscal 
year 
2008, 
and 
$300,000,000 for fiscal year 2009. 
(D) REFUGE
ROADS.—For refuge roads 
under section 204 of that title, $20,000,000 for 
each of fiscal years 2004 through 2009. 
(10) NATIONAL
CORRIDOR
INFRASTRUCTURE 
IMPROVEMENT PROGRAM.—For the national corridor 
infrastructure improvement program under section 
1301 of this title, $333,333,000 for fiscal year 2004, 
$600,000,000 for fiscal year 2005, $600,000,000 for 
fiscal year 2006, $600,000,000 for fiscal year 2007, 
$600,000,000 
for 
fiscal 
year 
2008, 
and 
$600,000,000 for fiscal year 2009. 
(11) COORDINATED BORDER INFRASTRUCTURE 
PROGRAM.—For the coordinated border infrastruc-
ture program under section 1302 of this title, 
$105,000,000 for fiscal year 2004, $200,000,000 for 
fiscal year 2005, $200,000,000 for fiscal year 2006, 
$200,000,000 for fiscal year 2007, $200,000,000 for 
fiscal year 2008, and $225,000,000 for fiscal year 
2009.
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(12) PROJECTS OF NATIONAL AND REGIONAL 
SIGNIFICANCE PROGRAM.—For the projects of na-
tional and regional significance program under sec-
tion 1304 of this title, $600,000,000 for fiscal year 
2004, 
$1,100,000,000 
for 
fiscal 
year 
2005, 
$1,100,000,000 
for 
fiscal 
year 
2006, 
$1,200,000,000 
for 
fiscal 
year 
2007, 
$1,300,000,000 
for 
fiscal 
year 
2008, 
and 
$1,300,000,000 for fiscal year 2009. 
(13) CONSTRUCTION
OF
FERRY
BOATS
AND 
FERRY TERMINAL FACILITIES.—For construction of 
ferry boats and ferry terminal facilities under sec-
tion 
165 
of 
title 
23, 
United 
States 
Code, 
$60,000,000 for fiscal year 2004, $70,000,000 for 
fiscal year 2005, $75,000,000 for fiscal year 2006, 
$75,000,000 for fiscal year 2007, $75,000,000 for 
fiscal year 2008, and $75,000,000 for fiscal year 
2009. 
(14) NATIONAL
SCENIC
BYWAYS
PROGRAM.— 
For the national scenic byways program under sec-
tion 
162 
of 
title 
23, 
United 
States 
Code, 
$30,000,000 for fiscal year 2004, $40,000,000 for 
fiscal year 2005, $45,000,000 for fiscal year 2006, 
$55,000,000 for fiscal year 2007, $55,000,000 for
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fiscal year 2008, and $60,000,000 for fiscal year 
2009. 
(15) CONGESTION PRICING PILOT PROGRAM.— 
For the congestion pricing pilot program under sec-
tion 1209 of this title, $15,000,000 for fiscal year 
2004, 
$15,000,000 
for 
fiscal 
year 
2005, 
$15,000,000 for fiscal year 2006, $15,000,000 for 
fiscal year 2007, $15,000,000 for fiscal year 2008, 
and $15,000,000 for fiscal year 2009. 
(16) DEPLOYMENT OF 511 TRAVELER INFOR-
MATION PROGRAM.—For the 511 traveler informa-
tion program under section 1204(c)(7) of this title, 
$6,000,000 for each of fiscal years 2004 through 
2009. 
(17) HIGH
PRIORITY
PROJECTS
PROGRAM.— 
For the high priority projects program under section 
117 of title 23, United States Code, $2,176,042,000 
for fiscal year 2004, $2,061,242,000 for fiscal year 
2005, 
$1,809,342,000 
for 
fiscal 
year 
2006, 
$1,708,042,000 
for 
fiscal 
year 
2007, 
$1,757,242,000 
for 
fiscal 
year 
2008, 
and 
$1,615,242,000 for fiscal year 2009. 
(18) FREIGHT INTERMODAL CONNECTOR PRO-
GRAM.—For the freight intermodal connector pro-
gram under section 1303 of this title, $115,000,000
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for fiscal year 2004, $250,000,000 for fiscal year 
2005, 
$250,000,000 
for 
fiscal 
year 
2006, 
$250,000,000 for fiscal year 2007, $250,000,000 for 
fiscal year 2008, and $250,000,000 for fiscal year 
2009. 
(19) HIGH
RISK
RURAL
ROAD
SAFETY
IM-
PROVEMENT
PROGRAM.—For the high risk rural 
road safety improvement program under section 
1403 of this title, $85,000,000 for fiscal year 2004, 
$105,000,000 for fiscal year 2005, $110,000,000 for 
fiscal year 2006, $120,000,000 for fiscal year 2007, 
$125,000,000 
for 
fiscal 
year 
2008, 
and 
$130,000,000 for fiscal year 2009. 
(20) HIGHWAY USE TAX EVASION PROGRAM.— 
For highway use tax evasion projects under section 
143 of title 23, United States Code, $12,000,000 for 
fiscal year 2004, $30,000,000 for fiscal year 2005, 
$30,000,000 for fiscal year 2006, $20,000,000 for 
fiscal year 2007, $10,000,000 for fiscal year 2008, 
and $7,000,000 for fiscal year 2009. 
(21) PEDESTRIAN AND CYCLIST EQUITY.— 
(A) SAFE ROUTES TO SCHOOL PROGRAM.— 
For the safe routes to school program under 
section 1120(a) of this title, $125,000,000 for 
fiscal year 2004, $150,000,000 for fiscal year
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2005, $175,000,000 for fiscal year 2006, 
$175,000,000 
for 
fiscal 
year 
2007, 
$175,000,000 
for 
fiscal 
year 
2008, 
and 
$200,000,000 for fiscal year 2009. 
(B) NONMOTORIZED
PILOT
PROGRAM.— 
For the nonmotorized pilot program under sec-
tion 1120(b) of this title, $20,000,000 for fiscal 
year 2004 and $25,000,000 for each of fiscal 
years 2005 through 2009. 
(22) DEDICATED
TRUCK
LANES.—For dedi-
cated truck lanes under section 1305 of this title, 
$80,000,000 for fiscal year 2004 ,$165,000,000 for 
each of fiscal years 2005 through 2008, and 
$170,000,000 for fiscal year 2009. 
(23) HIGHWAYS FOR LIFE PROGRAM.—For the 
highways for life program under section 1504 of this 
title, $40,000,000 for fiscal year 2004, $55,000,000 
for fiscal year 2005, and $60,000,000 for each of 
fiscal years 2006 through 2009. 
(24) COMMONWEALTH OF PUERTO RICO HIGH-
WAY PROGRAM.—For the Commonwealth of Puerto 
Rico highway program under section 1214(r) of the 
Transportation Equity Act for the 21st Century 
(112 Stat. 209), $115,000,000 for fiscal year 2004, 
$125,000,000 for fiscal year 2005, $130,000,000 for
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fiscal year 2006, $130,000,000 for fiscal year 2007, 
$140,000,000 
for 
fiscal 
year 
2008, 
and 
$140,000,000 for fiscal year 2009. 
(b) DISADVANTAGED BUSINESS ENTERPRISES.— 
(1) GENERAL RULE.—Except to the extent that 
the Secretary determines otherwise, not less than 10 
percent of the amounts made available for any pro-
gram under titles I, III, and V of this Act and sec-
tion 403 of title 23, United States Code, shall be ex-
pended with small business concerns owned and con-
trolled by socially and economically disadvantaged 
individuals. 
(2) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
(A) SMALL
BUSINESS
CONCERN.—The 
term ‘‘small business concern’’ has the meaning 
such term has under section 3 of the Small 
Business Act (15 U.S.C. 632); except that such 
term shall not include any concern or group of 
concerns controlled by the same socially and 
economically disadvantaged individual or indi-
viduals which has average annual gross receipts 
over the preceding 3 fiscal years in excess of 
$17,420,000, as adjusted by the Secretary for 
inflation.
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(B) SOCIALLY
AND
ECONOMICALLY
DIS-
ADVANTAGED
INDIVIDUALS.—The term ‘‘so-
cially and economically disadvantaged individ-
uals’’ has the meaning such term has under 
section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) and relevant subcontracting reg-
ulations promulgated pursuant thereto; except 
that women shall be presumed to be socially 
and economically disadvantaged individuals for 
purposes of this subsection. 
(3) ANNUAL LISTING OF DISADVANTAGED BUSI-
NESS ENTERPRISES.—Each State shall annually sur-
vey and compile a list of the small business concerns 
referred to in paragraph (1) and the location of such 
concerns in the State and notify the Secretary, in 
writing, of the percentage of such concerns which 
are controlled by women, by socially and economi-
cally disadvantaged individuals (other than women), 
and by individuals who are women and are otherwise 
socially and economically disadvantaged individuals. 
(4) UNIFORM CERTIFICATION.—The Secretary 
shall establish minimum uniform criteria for State 
governments to use in certifying whether a concern 
qualifies for purposes of this subsection. Such min-
imum uniform criteria shall include, but not be lim-
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ited to, on-site visits, personal interviews, licenses, 
analysis of stock ownership, listing of equipment, 
analysis of bonding capacity, listing of work com-
pleted, resume of principal owners, financial capac-
ity, and type of work preferred. 
(5) COMPLIANCE WITH COURT ORDERS.—Noth-
ing in this subsection limits the eligibility of an enti-
ty or person to receive funds made available under 
titles I, III, and V of this Act and section 403 of 
title 23, United States Code, if the entity or person 
is prevented, in whole or in part, from complying 
with paragraph (1) because a Federal court issues a 
final order in which the court finds that the require-
ment of paragraph (1), or the program established 
under paragraph (1), is unconstitutional. 
SEC. 1102. OBLIGATION CEILING. 
(a) GENERAL LIMITATION.—Notwithstanding any 
other provision of law but subject to subsections (g) and 
(h), the obligations for Federal-aid highway and highway 
safety construction programs shall not exceed— 
(1) $33,644,000,000 for fiscal year 2004; 
(2) $34,641,000,000 for fiscal year 2005; 
(3) $35,668,000,000 for fiscal year 2006; 
(4) $36,725,000,000 for fiscal year 2007; 
(5) $37,813,000,000 for fiscal year 2008; and
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(6) $38,934,000,000 for fiscal year 2009. 
(b) EXCEPTIONS.—The limitations under subsection 
(a) shall not apply to obligations— 
(1) under section 125 of title 23, United States 
Code; 
(2) under section 147 of the Surface Transpor-
tation Assistance Act of 1978; 
(3) under section 9 of the Federal-Aid Highway 
Act of 1981; 
(4) under sections 131(b) and 131(j) of the 
Surface Transportation Assistance Act of 1982; 
(5) under sections 149(b) and 149(c) of the 
Surface Transportation and Uniform Relocation As-
sistance Act of 1987; 
(6) under sections 1103 through 1108 of the 
Intermodal Surface Transportation Efficiency Act of 
1991; 
(7) under section 157 of title 23, United States 
Code, as in effect on June 8, 1998; 
(8) under section 105 of title 23, United States 
Code (but, for each of fiscal years 1998 through 
2013), only in an amount equal to $639,000,000 per 
fiscal year; and 
(9) for Federal-aid highway programs for which 
obligation authority was made available under the
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(B) the total of the sums authorized to be 
appropriated for Federal-aid highway and high-
way safety construction programs (other than 
sums authorized to be appropriated for sections 
set forth in paragraphs (1) through (7) of sub-
section (b) and sums authorized to be appro-
priated for section 105 of title 23, United 
States Code, equal to the amount referred to in 
subsection (b)(8)) for such fiscal year less the 
aggregate of the amounts not distributed under 
paragraph (1) of this subsection; 
(4) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) for section 
117 of title 23, United States Code (relating to high 
priority projects program), section 14501 of title 40, 
United States Code (relating to Appalachian devel-
opment highway system), and $2,000,000,000 for 
such fiscal year under section 105 of title 23, United 
States Code (relating to minimum guarantee) so 
that amount of obligation authority available for 
each of such sections is equal to the amount deter-
mined by multiplying the ratio determined under 
paragraph (3) by the sums authorized to be appro-
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priated for such section (except in the case of sec-
tion 105, $2,000,000,000) for such fiscal year; 
(5) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) and 
amounts distributed under paragraph (4) for each of 
the programs that are allocated by the Secretary 
under this Act and title 23, United States Code 
(other than activities to which paragraph (1) applies 
and programs to which paragraph (4) applies) by 
multiplying the ratio determined under paragraph 
(3) by the sums authorized to be appropriated for 
such program for such fiscal year; and 
(6) distribute the obligation authority provided 
by subsection (a) less the aggregate amounts not 
distributed under paragraphs (1) and (2) and 
amounts distributed under paragraphs (4) and (5) 
for Federal-aid highway and highway safety con-
struction programs (other than the minimum guar-
antee program, but only to the extent that amounts 
apportioned for the minimum guarantee program for 
such fiscal year exceed $2,639,000,000, and the Ap-
palachian development highway system program) 
that are apportioned by the Secretary under this Act 
and title 23, United States Code, in the ratio that—
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(A) sums authorized to be appropriated for 
such programs that are apportioned to each 
State for such fiscal year, bear to 
(B) the total of the sums authorized to be 
appropriated for such programs that are appor-
tioned to all States for such fiscal year. 
(d) REDISTRIBUTION OF UNUSED OBLIGATION AU-
THORITY.—Notwithstanding subsection (c), the Secretary 
shall after August 1 of each of fiscal years 2004 through 
2009 revise a distribution of the obligation authority made 
available under subsection (c) if an amount made available 
under this section will not be obligated during the fiscal 
year and redistribute sufficient amounts to those States 
able to obligate amounts in addition to those previously 
distributed during that fiscal year. In making the redis-
tribution, the Secretary shall give priority to those States 
having large unobligated balances of funds apportioned 
under sections 104 and 144 of title 23, United States 
Code. 
(e) APPLICABILITY OF OBLIGATION LIMITATIONS TO 
TRANSPORTATION
RESEARCH
PROGRAMS.—Obligation 
limitations imposed by subsection (a) shall apply to trans-
portation research programs carried out under chapter 5 
of title 23, United States Code, and under title V of this 
Act; except that obligation authority made available for
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such programs under such limitations shall remain avail-
able for a period of 3 fiscal years. 
(f) REDISTRIBUTION
OF
CERTAIN
AUTHORIZED 
FUNDS.—Not later than 30 days after the date of the dis-
tribution of obligation authority under subsection (c) for 
each of fiscal years 2004 through 2009, the Secretary 
shall distribute to the States any funds (1) that are au-
thorized to be appropriated for such fiscal year for Fed-
eral-aid highway programs, and (2) that the Secretary de-
termines will not be allocated to the States, and will not 
be available for obligation, in such fiscal year due to the 
imposition of any obligation limitation for such fiscal year. 
Such distribution to the States shall be made in the same 
ratio as the distribution of obligation authority under sub-
section (c)(6). The funds so distributed shall be available 
for any purposes described in section 133(b) of title 23, 
United States Code. 
(g) SPECIAL RULE.—Obligation authority distributed 
for a fiscal year under subsection (c)(4) for a section set 
forth in subsection (c)(4) shall remain available until used 
for obligation of funds for such section and shall be in 
addition to the amount of any limitation imposed on obli-
gations for Federal-aid highway and highway safety con-
struction programs for future fiscal years.
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(h) INCREASE IN OBLIGATION LIMIT.—Limitations 
on obligations imposed by subsection (a) for a fiscal year 
shall be increased by an amount equal to the amount de-
termined pursuant to section 251(b)(1)(B)(ii)(I)(cc) of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal 
year. Any such increase shall be distributed in accordance 
with this section. 
(i) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRA-
TIVE EXPENSES.—Notwithstanding any other provision of 
law, the total amount of all obligations under section 
104(a) of title 23, United States Code, shall not exceed— 
(1) $390,000,000 for fiscal year 2004; 
(2) $395,000,000 for fiscal year 2005; 
(3) $395,000,000 for fiscal year 2006; 
(4) $395,000,000 for fiscal year 2007; 
(5) $395,000,000 for fiscal year 2008; and 
(6) $400,000,000 for fiscal year 2009. 
SEC. 1103. APPORTIONMENTS. 
(a) ADMINISTRATIVE EXPENSES.—Section 104(a) of 
title 23, United States Code, is amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following: 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated from the Highway Trust Fund (other
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than the Mass Transit Account) for purposes de-
scribed in paragraph (2) $390,000,000 for fiscal 
year 2004, $395,000,000 for fiscal year 2005, 
$395,000,000 for fiscal year 2006, $395,000,000 for 
fiscal year 2007, $395,000,000 for fiscal year 2008, 
and $400,000,000 for fiscal year 2009. 
‘‘(2) USE OF FUNDS.—The amounts authorized 
to be appropriated by paragraph (1) are authorized 
for the following purposes: 
‘‘(A) To administer the provisions of law to 
be financed from appropriations for the Fed-
eral-aid highway program and programs au-
thorized under chapter 2. 
‘‘(B) To make transfers of such sums as 
the Secretary determines to be appropriate to 
the Appalachian Regional Commission for ad-
ministrative activities associated with the Appa-
lachian development highway system.’’; 
(2) in paragraph (3) by striking ‘‘sum deducted 
under’’ and inserting ‘‘amounts authorized to be ap-
propriated by’’; and 
(3) in paragraph (4)— 
(A) by striking ‘‘sums deducted under’’ 
and inserting ‘‘amounts authorized to be appro-
priated by’’; and
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(B) by striking ‘‘and the Federal Motor 
Carrier Safety Administration’’. 
(b) NATIONAL HIGHWAY SYSTEM.—Section 104(b) 
of such title is amended— 
(1) by striking ‘‘the deduction authorized by 
subsection (a) and’’; and 
(2) in paragraph (1)(A)— 
(A) by striking ‘‘$36,400,000 for each fis-
cal year’’ and inserting ‘‘$40,000,000 for fiscal 
year 2004, $40,000,000 for fiscal year 2005, 
$40,000,000 for fiscal year 2006, $50,000,000 
for fiscal year 2007, $50,000,000 for fiscal year 
2008, and $50,000,000 for fiscal year 2009’’; 
and 
(B) by striking ‘‘$18,800,000 for each of 
fiscal years 1998 through 2002’’ and inserting 
‘‘$20,000,000 
for 
fiscal 
year 
2004 
and 
$30,000,000 for each of fiscal years 2005 
through 2009’’. 
(c) REPORT.—Section 104(j) of title 23, United 
States Code, is amended by striking ‘‘submit to Congress 
a report’’ and inserting ‘‘transmit to Congress a report, 
and also make such report available to the public in a 
user-friendly format via the Internet,’’.
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(d) CONFORMING AMENDMENTS.—Section 104 of 
such title is amended— 
(1) in subsection (f)(1)— 
(A) by striking ‘‘, after making the deduc-
tion authorized by subsection (a) of this sec-
tion,’’; and 
(B) by striking ‘‘remaining’’; and 
(2) in subsection (i) by striking ‘‘deducted’’ and 
inserting ‘‘authorized to be appropriated’’. 
(e) PUERTO RICO HIGHWAY PROGRAM.—Section 
1214(r) of the Transportation Equity Act for the 21st 
Century (112 Stat. 209; 117 Stat. 1114) is amended— 
(1) in paragraph (1) by striking ‘‘(15) for each 
of fiscal years 1998 through 2004’’ and inserting 
‘‘(24) for each of fiscal years 2004 through 2009 of 
the Transportation Equity Act: A Legacy for 
Users’’; and 
(2) in paragraph (2) by striking ‘‘(15) of this 
Act’’ and inserting ‘‘(24) of the Transportation Eq-
uity Act: A Legacy for Users’’. 
SEC. 1104. MINIMUM GUARANTEE. 
(a) GENERAL RULE.—Section 105(a) of title 23, 
United States Code, is amended— 
(1) by striking ‘‘1998 through 2003’’ and in-
serting ‘‘2004 through 2009’’;
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(2) by striking ‘‘, high priority projects’’; and 
(3) by striking ‘‘and recreational trails’’ and in-
serting ‘‘recreational trails, coordinated border infra-
structure, freight intermodal connectors, safe routes 
to school, highway safety improvement, and high 
risk rural road safety improvement’’. 
(b) TREATMENT OF FUNDS.—Section 105(c)(1) of 
such title is amended— 
(1) by striking ‘‘$2,800,000,000’’ and inserting 
‘‘$2,870,000,000 
in 
fiscal 
year 
2004, 
$2,941,750,000 in fiscal year 2005, $3,015,293,750 
in fiscal year 2006, $3,090,676,094 in fiscal year 
2007, $3,167,942,996 in fiscal year 2008, and 
$3,247,141,571 in fiscal year 2009’’; 
(2) by striking ‘‘, high priority projects’’; and 
(3) by striking ‘‘and recreational trails’’ each 
place it appears and inserting ‘‘recreational trails, 
coordinated border infrastructure, freight intermodal 
connectors, safe routes to school, highway safety im-
provement, and high risk rural road safety improve-
ment’’. 
(c) AUTHORIZATION.—Section 105(d) of such title is 
amended by striking ‘‘1998 through 2003’’ and inserting 
‘‘2004 through 2009’’.
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(d) SPECIAL RULE.—Section 105 of such title is fur-
ther amended— 
(1) by striking subsection (e); and 
(2) by redesignating subsection (f) as sub-
section (e). 
(e) GUARANTEED
SPECIFIED
RETURN.—Section 
105(e) of such title (as redesignated by subsection (d)) 
is amended— 
(1) in the subsection heading by striking ‘‘OF 
90.5’’ and inserting ‘‘SPECIFIED’’; and 
(2) in paragraph (1) by striking ‘‘1999 through 
2003’’ and inserting ‘‘2004 through 2009’’. 
(f) CONFORMING AMENDMENTS.— 
(1) SECTION 131.—Section 131(m) of title 23, 
United States Code, is amended by striking ‘‘in ac-
cordance with the program of projects approval 
process of section 105’’. 
(2) SECTION 140.—Section 140 of such title is 
amended— 
(A) in subsection (a) by striking ‘‘pro-
grams for projects as provided for in subsection 
(a) of section 105 of this title’’ and inserting 
‘‘project under this chapter’’; and
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(B) in subsection (c) by striking ‘‘sub-
section 104(b)(3) of this title’’ and inserting 
‘‘section 104(b)(3)’’. 
SEC. 1105. PROJECT APPROVAL AND OVERSIGHT 
(a) OVERSIGHT PROGRAM.—Section 106 of title 23, 
United States Code, is amended by striking subsection (h) 
and inserting the following: 
‘‘(h) OVERSIGHT PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an oversight program to monitor the effective 
and efficient use of funds authorized to carry out 
this title. At a minimum, the program shall be re-
sponsive to all areas related to financial integrity 
and project delivery. 
‘‘(2) FINANCIAL INTEGRITY.— 
‘‘(A) 
FINANCIAL
MANAGEMENT
SYS-
TEMS.—The Secretary shall perform annual re-
views that address elements of the State trans-
portation departments’ financial management 
systems that affect projects approved under 
subsection (a). 
‘‘(B) PROJECT
COSTS.—The Secretary 
shall develop minimum standards for estimating 
project costs and shall periodically evaluate the
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States’ practices for estimating project costs, 
awarding contracts, and reducing project costs. 
‘‘(C) RESPONSIBILITY OF THE STATES.— 
The States are responsible for determining that 
subrecipients of Federal funds under this title 
have sufficient accounting controls to properly 
manage such Federal funds. The Secretary 
shall periodically review the States’ monitoring 
of subrecipients. 
‘‘(3) PROJECT DELIVERY.—The Secretary shall 
perform annual reviews that address elements of a 
State’s project delivery system, which includes one 
or more activities that are involved in the life cycle 
of a project from its conception to its completion. 
‘‘(4) RESPONSIBILITY
OF
THE
STATES.—The 
States are responsible for determining that sub-
recipients of Federal funds under this title have ade-
quate project delivery systems for projects approved 
under this section. The Secretary shall periodically 
review the States’ monitoring of subrecipients. 
‘‘(5) 
SPECIFIC
OVERSIGHT
RESPONSIBIL-
ITIES.—Nothing in this section shall affect or dis-
charge any oversight responsibility of the Secretary 
specifically provided for under this title or other 
Federal law. In addition, the Secretary shall retain
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full oversight responsibilities for the design and con-
struction of all Appalachian development highways 
under section 14501 of title 40. 
‘‘(i) MAJOR PROJECTS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision in this section, a recipient of Federal fi-
nancial assistance for a project under this title with 
an estimated total cost of $500,000,000 or more, or 
any other project in the discretion of the Secretary, 
shall submit to the Secretary a project management 
plan and an annual financial plan. 
‘‘(2) 
PROJECT
MANAGEMENT
PLAN.—The 
project management plan shall document the proce-
dures and processes in place to provide timely infor-
mation to the project decision makers to manage ef-
fectively the scope, costs, schedules, and quality, and 
the Federal requirements of the project and the role 
of the agency leadership and management team in 
the delivery of the project. 
‘‘(3) FINANCIAL
PLAN.—The financial plan 
shall be based on detailed estimates of the cost to 
complete the project. Annual updates shall be sub-
mitted based on reasonable assumptions, as deter-
mined by the Secretary, of future increases in the 
cost to complete the project.
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‘‘(j) OTHER PROJECTS.—A recipient of Federal fi-
nancial assistance for a project under this title with an 
estimated total cost of $100,000,000 or more that is not 
covered by subsection (h) shall prepare an annual financial 
plan. Annual financial plans prepared under this sub-
section shall be made available to the Secretary for review 
upon the Secretary’s request.’’. 
(b) SHARING OF MONETARY RECOVERIES.—Notwith-
standing any other provision of law, monetary judgments 
accruing to the Government from judgments in Federal 
criminal prosecutions and civil proceedings pertaining to 
fraud in Federally funded highway and public transpor-
tation projects and programs shall be treated as follows: 
(1) Any amount less than or equal to the single 
damages incurred as the result of such fraud shall 
be credited to the Federal account from which the 
funds for the project or program that is at issue in 
the fraud came, except to the extent that such Fed-
eral account has been credited as the result of any 
judgment in favor of a grant recipient. 
(2) Any amount in excess of the amount cred-
ited pursuant to paragraph (1) shall be shared with 
the State or other recipient involved if— 
(A) the State or other recipient enters into 
a legally binding agreement with the Secretary
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to use the funds for a purpose eligible for Fed-
eral assistance under title 23 or chapter 53 of 
title 49, United States Code, as the case may 
be; 
(B) the amount to be shared with the 
State or other recipient is determined by the 
Attorney General, in consultation with the Sec-
retary; and 
(C) the Attorney General, in consultation 
with the Secretary, determines that the fraud 
did not occur as a result of negligent oversight 
or actual involvement in the fraud by the State 
or other recipient or any senior official of the 
State or other recipient. 
SEC. 1106. TEMPORARY TRAFFIC CONTROL DEVICES. 
(a) STANDARDS.—Section 109(e) of title 23, United 
States Code, is amended— 
(1) by striking ‘‘(e) No funds’’ and inserting 
the following: 
‘‘(e) INSTALLATION OF SAFETY DEVICES.— 
‘‘(1) HIGHWAY AND RAILROAD GRADE CROSS-
INGS AND DRAWBRIDGES.—No funds’’; and 
(2) by adding at the end the following: 
‘‘(2) 
TEMPORARY
TRAFFIC
CONTROL
DE-
VICES.—No funds shall be approved for expenditure
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on any Federal-aid highway, or highway affected 
under chapter 2 of this title, unless proper tem-
porary traffic control devices to improve safety in 
work zones will be installed and maintained during 
construction, utility, and maintenance operations on 
that portion of the highway with respect to which 
such expenditures are to be made. Installation and 
maintenance of the devices shall be in accordance 
with the Manual on Uniform Traffic Control De-
vices.’’. 
(b) LETTING OF CONTRACTS.—Section 112 of such 
title is amended— 
(1) by striking subsection (f); 
(2) by redesignating subsection (g) as sub-
section (f); and 
(3) by adding at the end the following: 
‘‘(g) TEMPORARY TRAFFIC CONTROL DEVICES.— 
‘‘(1) ISSUANCE
OF
REGULATIONS.—The Sec-
retary, after consultation with appropriate Federal 
and State officials, shall issue regulations estab-
lishing the conditions for the appropriate use of, and 
expenditure of funds for, uniformed law enforcement 
officers, positive protective measures between work-
ers and motorized traffic, and installation and main-
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tenance of temporary traffic control devices during 
construction, utility, and maintenance operations. 
‘‘(2) EFFECTS
OF
REGULATIONS.—Based on 
regulations issued under paragraph (1), a State 
shall— 
‘‘(A) develop separate pay items for the 
use of uniformed law enforcement officers, posi-
tive protective measures between workers and 
motorized traffic, and installation and mainte-
nance of temporary traffic control devices dur-
ing construction, utility, and maintenance oper-
ations; and 
‘‘(B) incorporate such pay items into con-
tract provisions to be included in each contract 
entered into by the State with respect to a 
highway project to ensure compliance with sec-
tion 109(e)(2). 
‘‘(3) LIMITATION.—Nothing in the regulations 
shall be construed to prohibit a State from imple-
menting standards that are more stringent than 
those required under the regulations. 
‘‘(4) POSITIVE
PROTECTIVE
MEASURES
DE-
FINED.—In this subsection, the term ‘positive pro-
tective measures’ means temporary traffic barriers, 
crash cushions, and other strategies to avoid traffic
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accidents in work zones, including full road clo-
sures.’’. 
SEC. 1107. REVENUE ALIGNED BUDGET AUTHORITY. 
(a) ALLOCATION.—Section 110(a)(1) of title 23, 
United States Code, is amended— 
(1) by striking ‘‘2000’’ and inserting ‘‘2006’’; 
(2) by inserting after ‘‘such fiscal year’’ the fol-
lowing: ‘‘and the succeeding fiscal year’’. 
(b) REDUCTION.—Section 110(a)(2) of such title is 
amended— 
(1) by striking ‘‘2000’’ and inserting ‘‘2006’’; 
(2) by striking ‘‘October 1 of the succeeding’’ 
and inserting ‘‘October 15 of such’’; and 
(3) by inserting after ‘‘Account)’’ the following: 
‘‘for such fiscal year and the succeeding fiscal year’’. 
(c) GENERAL DISTRIBUTION.—Section 110(b)(1)(A) 
of such title is amended by striking ‘‘Transportation Eq-
uity Act for the 21st Century’’ and inserting ‘‘Transpor-
tation Equity Act: A Legacy for Users’’. 
(d) TECHNICAL AMENDMENT.—Section 110(b)(1)(A) 
of title 23, United States Code, is amended by striking 
‘‘for’’ the second place it appears.
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SEC. 1108. EMERGENCY RELIEF. 
(a) IN GENERAL.—Effective October 1, 2004, section 
125(c)(1) of title 23, United States Code, is amended by 
striking ‘‘$100,000,000’’ and inserting ‘‘$120,000,000’’. 
(b) AUTHORIZATIONS
OF APPROPRIATIONS FROM 
GENERAL FUND.—There is authorized to be appropriated 
for a fiscal year such sums as may be necessary for alloca-
tions by the Secretary described in subsections (a) and (b) 
of sections 125 of title 23, United States Code, if the total 
of those allocations in such fiscal year are in excess of 
$120,000,000. 
SEC. 1109. SURFACE TRANSPORTATION PROGRAM. 
Section 133(f)(1) of title 23, United States Code, is 
amended— 
(1) by striking ‘‘1998 through 2000’’ and in-
serting ‘‘2004 through 2006’’; and 
(2) by striking ‘‘2001 through 2003’’ and in-
serting ‘‘2007 through 2009’’. 
SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS. 
(a) ELIGIBLE ACTIVITIES.— 
(1) INTERGOVERNMENTAL ENFORCEMENT EF-
FORTS.—Section 143(b)(2) of title 23, United States 
Code, is amended by inserting before the period the 
following: ‘‘; except that of funds so made available 
for each of fiscal years 2004 through 2009, 
$2,000,000 shall be available only to carry out inter-
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governmental enforcement efforts, including research 
and training’’. 
(2) CONDITIONS ON FUNDS ALLOCATED TO IN-
TERNAL REVENUE SERVICE.—Section 143(b)(3) of 
such title is amended by striking ‘‘The’’ and insert-
ing ‘‘Except as otherwise provided in this section, 
the’’. 
(3) LIMITATION ON USE OF FUNDS.—Section 
143(b)(4) of such title is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (F); 
(B) by striking the period at the end of 
subparagraph (G) and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(H) to support efforts between States and 
Indian tribes to address issues related to State 
motor fuel taxes; and 
‘‘(I) to analyze and implement programs to 
reduce tax evasion associated with foreign im-
ported fuel.’’. 
(4) REPORTS.—Section 143(b) of such title is 
amended by adding at the end the following: 
‘‘(9) REPORTS.—The Commissioner of the In-
ternal Revenue Service and each State shall submit
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to the Secretary an annual report that describes the 
projects, examinations, and criminal investigations 
funded by and carried out under this section. Such 
report shall specify the annual yield estimated for 
each project funded under this section.’’. 
(b) EXCISE FUEL REPORTING SYSTEM.— 
(1) IN GENERAL.—Section 143(c)(1) of such 
title is amended— 
(A) by striking ‘‘August 1, 1998,’’ and in-
serting ‘‘90 days after the date of enactment of 
the Transportation Equity Act: A Legacy for 
Users,’’; 
(B) by striking ‘‘development’’ and insert-
ing ‘‘completion, operation,’’; and 
(C) by striking ‘‘an excise fuel reporting 
system (in this subsection referred to as ‘the 
system’)’’ and inserting ‘‘an excise summary 
terminal activity reporting system’’. 
(2) ELEMENTS OF MEMORANDUM OF UNDER-
STANDING.—Section 143(c)(2) of such title is 
amended— 
(A) by striking ‘‘the system’’ the first place 
it appears and inserting ‘‘the excise summary 
terminal activity reporting system’’;
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(B) in subparagraph (A) by striking ‘‘de-
velop’’ and inserting ‘‘complete’’; 
(C) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(D) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; and 
(E) by adding at the end the following: 
‘‘(D) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for the 
completion, operation, and maintenance of the 
system.’’; and 
(3) FUNDING PRIORITY.—Section 143(c)(3) of 
such title is amended to read as follows: 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make avail-
able to the Internal Revenue Service such funds as 
may be necessary to complete, operate, and maintain 
the excise summary terminal activity reporting sys-
tem in accordance with this subsection.’’. 
(c) REGISTRATION SYSTEM AND ELECTRONIC DATA-
BASE.—Section 143 of such title is further amended by 
adding at the end the following:
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‘‘(d) PIPELINE, VESSEL, AND BARGE REGISTRATION 
SYSTEM.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of enactment of this subsection, the 
Secretary shall enter into a memorandum of under-
standing with the Commissioner of the Internal Rev-
enue Service for the purposes of the development, 
operation, and maintenance of a registration system 
for pipelines, vessels, and barges, and operators of 
such pipelines, vessels, and barges, that make bulk 
transfers of taxable fuel. 
‘‘(2) ELEMENTS OF MEMORANDUM OF UNDER-
STANDING.—The memorandum of understanding 
shall provide that— 
‘‘(A) the Internal Revenue Service shall de-
velop and maintain the registration system 
through contracts; 
‘‘(B) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for de-
velopment, operation, and maintenance of the 
registration system; 
‘‘(C) the registration system shall be under 
the control of the Internal Revenue Service; and
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‘‘(D) the registration system shall be made 
available for use by appropriate State and Fed-
eral revenue, tax, and law enforcement authori-
ties, subject to section 6103 of the Internal 
Revenue Code of 1986. 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make avail-
able to the Internal Revenue Service such funds as 
may be necessary to complete, operate, and maintain 
a registration system for pipelines, vessels, and 
barges, and operators of such pipelines, vessels, and 
barges, that make bulk transfers of taxable fuel in 
accordance with this subsection. 
‘‘(e) HEAVY VEHICLE USE TAX PAYMENT DATA-
BASE.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of enactment of this subsection, the 
Secretary shall enter into a memorandum of under-
standing with the Commissioner of the Internal Rev-
enue Service for the purposes of the establishment, 
operation, and maintenance of an electronic data-
base of heavy vehicle highway use tax payments.
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‘‘(2) ELEMENTS OF MEMORANDUM OF UNDER-
STANDING.—The memorandum of understanding 
shall provide that— 
‘‘(A) the Internal Revenue Service shall es-
tablish and maintain the electronic database 
through contracts; 
‘‘(B) the Commissioner of the Internal 
Revenue Service shall submit and the Secretary 
shall approve a budget and project plan for es-
tablishment, operation, and maintenance of the 
electronic database; 
‘‘(C) the electronic database shall be under 
the control of the Internal Revenue Service; and 
‘‘(D) the electronic database shall be made 
available for use by appropriate State and Fed-
eral revenue, tax, and law enforcement authori-
ties, subject to section 6103 of the Internal 
Revenue Code of 1986. 
‘‘(3) FUNDING.—Of the amounts made avail-
able to carry out this section for each of fiscal years 
2004 through 2009, the Secretary shall make avail-
able to the Internal Revenue Service such funds as 
may be necessary to establish, operate, and maintain 
an electronic database of heavy vehicle highway use 
tax payments in accordance with this subsection.
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‘‘(f) REPORTS.—Not later than March 30 and Sep-
tember 30 of each year, the Commissioner of the Internal 
Revenue Service shall provide reports to the Secretary on 
the status of the Internal Revenue Service projects funded 
under this section related to the excise summary terminal 
activity reporting system, the pipeline, vessel, and barge 
registration system, and the heavy vehicle use tax elec-
tronic database.’’. 
SEC. 1111. APPALACHIAN DEVELOPMENT HIGHWAY SYS-
TEM. 
(a) APPORTIONMENT.—The Secretary shall appor-
tion funds made available by section 1101(a)(7) of this 
Act for fiscal years 2004 through 2009 among the States 
based on the latest available cost to complete estimate for 
the Appalachian development highway system under sec-
tion 14501 title 40, United States Code. 
(b) APPLICABILITY
OF TITLE 23.—Funds made 
available by section 1101(a)(7) of this Act for the Appa-
lachian development highway system shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that the Federal share of the cost of any project 
under this section shall be determined in accordance with 
such section 14501 of title 40, United States Code, and 
such funds shall be available to construct highways and
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access roads under such section and shall remain available 
until expended. 
(c) USE OF TOLL CREDITS.—Section 120(j)(1) of 
title 23, United States Code is amended by inserting ‘‘and 
the Appalachian development highway system program 
under section 14501 of title 40’’ after ‘‘section 125’’. 
SEC. 1112. CONSTRUCTION OF FERRY BOATS AND FERRY 
TERMINAL FACILITIES. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘§ 165. Construction of ferry boats and ferry terminal 
facilities 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program for construction of ferry boats and ferry terminal 
facilities in accordance with section 129(c). 
‘‘(b) FEDERAL SHARE.—The Federal share payable 
for construction of ferry boats and ferry terminal facilities 
under this section shall be 80 percent of the cost thereof. 
‘‘(c) AVAILABILITY OF AMOUNTS.—Amounts made 
available to carry out this section shall remain available 
until expended. 
‘‘(d) SET-ASIDE FOR PROJECTS ON NHS.— 
‘‘(1) IN GENERAL.—$20,000,000 of the amount 
made available to carry out this section for each of
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fiscal years 2004 through 2009 shall be obligated for 
the construction or refurbishment of ferry boats and 
ferry terminal facilities and approaches to such fa-
cilities within marine highway systems that are part 
of the National Highway System. 
‘‘(2) 
ALASKA.—$10,000,000 
of 
the 
$20,000,000 for a fiscal year made available under 
paragraph (1) shall be made available to the State 
of Alaska. 
‘‘(3) 
NEW
JERSEY.—$5,000,000 
of 
the 
$20,000,000 for a fiscal year made available under 
paragraph (1) shall be made available to the State 
of New Jersey. 
‘‘(4) 
WASHINGTON.—$5,000,000 
of 
the 
$20,000,000 for a fiscal year made available under 
paragraph (1) shall be made available to the State 
of Washington. 
‘‘(e) APPLICABILITY.—All provisions of this chapter 
that are applicable to the National Highway System, other 
than provisions relating to apportionment formula and 
Federal share, shall apply to funds made available to carry 
out this section, except as determined by the Secretary 
to be inconsistent with this section.’’.
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(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter 1 of such title is amended by add-
ing at the end the following: 
‘‘165. Construction of ferry boats and ferry terminal facilities.’’. 
(c) NATIONAL FERRY DATABASE.— 
(1) ESTABLISHMENT.—The Secretary, acting 
through the Bureau of Transportation Statistics, 
shall establish and maintain a national ferry data-
base. 
(2) CONTENTS.—The database shall contain 
current information regarding ferry systems, includ-
ing information regarding routes, vessels, passengers 
and vehicles carried, funding sources and such other 
information as the Secretary considers useful. 
(3) UPDATE REPORT.—Using information col-
lected through the database, the Secretary shall pe-
riodically modify as appropriate the report submitted 
under section 1207(c) of the Transportation Equity 
Act for the 21st Century (23 U.S.C. 129 note; 112 
Stat. 185–186). 
(4) REQUIREMENTS.—The Secretary shall— 
(A) compile the database not later than 1 
year after the date of enactment of this Act and 
update the database every 2 years thereafter; 
(B) ensure that the database is easily ac-
cessible to the public;
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(C) make available, from the ferry boat 
and ferry terminal program authorized under 
section 165 of title 23, United States Code, not 
more than $500,000 for each of fiscal years 
2004 through 2009 to establish the database. 
SEC. 1113. INTERSTATE MAINTENANCE DISCRETIONARY. 
(a) IN GENERAL.—Section 118 of title 23, United 
States Code, is amended— 
(1) by striking subsection (c); 
(2) in subsection (e) by inserting ‘‘SPECIAL 
RULES.—’’ before ‘‘Funds made’’; and 
(3) by redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively. 
(b) CONFORMING AMENDMENT.—Section 103(d)(1) 
of such title is amended by striking ‘‘or 118(c)’’. 
(c) TECHNICAL AMENDMENTS.— 
(1) SECTION 114.—Section 114(a) of such title 
is amended by striking ‘‘Except as provided in sec-
tion 117 of this title, such’’ and inserting ‘‘Such’’. 
(2) SECTION 116.—Section 116(b) of such title 
is amended by striking ‘‘highway department’’ and 
inserting ‘‘transportation department’’. 
(3) SECTION 120.—Section 120(e) of such title 
is amended in the first sentence by striking ‘‘such 
system’’ and inserting ‘‘such highway’’.
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(4) SECTION 126.—Section 126(a) of such title 
is amended by inserting ‘‘under’’ before ‘‘section 
104(b)(3)’’. 
(5) SECTION 127.—Section 127 of such title is 
amended by striking ‘‘118(b)(1)’’ and inserting 
‘‘118(b)(2)’’. 
(6) 
BICYCLE
AND
PEDESTRIAN
SAFETY 
GRANTS.—Section 1212(i) of the Transportation Eq-
uity Act for the 21st Century (112 Stat. 196–197) 
is amended by redesignating subparagraphs (D) and 
(E) as paragraphs (2) and (3), respectively, and 
moving such paragraphs 2 ems to the left. 
(d) LIMITATION.—The amendments made by this 
section shall not apply to, or have any affect with respect 
to, funds made available under section 118 of title 23, 
United States Code, before the date of enactment of this 
section. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) of this section shall take effect on 
September 30, 2004. 
SEC. 1114. HIGHWAY BRIDGE. 
(a) SCOUR COUNTERMEASURES.—Section 144(d) of 
title 23, United States Code, is amended to read as fol-
lows:
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‘‘(d) APPLICATIONS FOR AND APPROVAL OF ASSIST-
ANCE.— 
‘‘(1) BRIDGE REPLACEMENT OR REHABILITA-
TION.—Whenever any State or States make applica-
tion to the Secretary for assistance in replacing or 
rehabilitating a highway bridge which the priority 
system established under subsections (b) and (c) 
shows to be eligible, the Secretary may approve Fed-
eral participation in replacing such bridge with a 
comparable facility or in rehabilitating such bridge. 
‘‘(2) PREVENTIVE MAINTENANCE, SCOUR MEAS-
URES, AND
APPLICATIONS
OF
CERTAIN
COMPOSI-
TIONS.—Whenever any State makes application to 
the Secretary for assistance in painting, seismic ret-
rofit, or preventive maintenance of, or installing 
scour countermeasures or applying calcium magne-
sium acetate, sodium acetate/formate, or other envi-
ronmentally acceptable, minimally corrosive anti- 
icing and de-icing compositions to, the structure of 
a highway bridge, the Secretary may approve Fed-
eral participation in the painting, seismic retrofit, or 
preventive maintenance of, or installation of scour 
countermeasures or application of acetate or sodium 
acetate/formate or such anti-icing or de-icing com-
position to, such structure.
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‘‘(3) ELIGIBILITY.—The Secretary shall deter-
mine the eligibility of highway bridges for replace-
ment or rehabilitation for each State based upon the 
unsafe highway bridges in such State; except that a 
State may carry out a project for preventive mainte-
nance on a bridge, seismic retrofit of a bridge, or in-
stalling scour countermeasures to a bridge under 
this section without regard to whether the bridge is 
eligible for replacement or rehabilitation under this 
section.’’. 
(b) BRIDGE DISCRETIONARY SET-ASIDE.—Section 
144(g)(1) of such title is amended by adding at the end 
the following: 
‘‘(D) 
FISCAL
YEARS
2004 
THROUGH 
2009.—Of the amounts authorized to be appro-
priated to carry out the bridge program under 
this section for each of the fiscal years 2004 
through 2009, all but $100,000,000 shall be 
apportioned as provided in subsection (e). Such 
$100,000,000 shall be available at the discre-
tion of the Secretary; except that $25,000,000 
shall be available only for projects for the seis-
mic 
retrofit 
of 
bridges, 
and 
of 
which 
$10,000,000 shall be available only for the seis-
mic retrofit of a bridge described in subsection
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(l), and except as provided in subparagraph 
(E). 
‘‘(E) GRAVINA ACCESS.— 
‘‘(i) IN
GENERAL.—Of the amounts 
authorized to be appropriated to carry out 
the bridge program under this paragraph, 
for each of the fiscal years 2005 through 
2009, $10,000,000 shall be set aside from 
the $100,000,000 available at the discre-
tion of the Secretary under subparagraph 
(D) for the construction of a bridge joining 
the Island of Gravina to the community of 
Ketchikan in Alaska. 
‘‘(ii) SCORING.—The project described 
in this subparagraph shall not be counted 
for purposes of the reduction set forth in 
the fourth sentence of subsection (e).’’. 
(c) OFF-SYSTEM BRIDGES.—Section 144(g)(3) of 
such title is amended— 
(1) by striking ‘‘15 percent’’ and inserting ‘‘20 
percent’’; 
(2) by striking ‘‘1987’’ and inserting ‘‘2004’’; 
(3) by striking ‘‘2003’’ and inserting ‘‘2009’’; 
(4) by inserting ‘‘, perform systematic preven-
tive maintenance,’’ after ‘‘paint’’; and
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(5) by inserting a comma before ‘‘to highway 
bridges’’. 
(d) TECHNICAL AMENDMENT.—Section 144(i) of 
such title is amended by striking ‘‘at the same time’’ and 
all that follows through ‘‘Congress’’. 
SEC. 1115. TRANSPORTATION AND COMMUNITY AND SYS-
TEM PRESERVATION PROGRAM. 
(a) EXTENSION.—Section 1221(e)(1) of Transpor-
tation Equity Act for the 21st Century (23 U.S.C. 101 
note; 112 Stat. 223) is amended— 
(1) by striking ‘‘1999 and’’ and inserting 
‘‘1999,’’; and 
(2) by inserting before the period at the end the 
following: ‘‘, and $25,000,000 for fiscal year 2004, 
$30,000,000 for fiscal year 2005, $35,000,000 for 
fiscal year 2006, $35,000,000,000 for fiscal year 
2007, and $35,000,000 for each of fiscal years 2008 
and 2009’’. 
(b) FEDERAL SHARE.—Section 1221(e)(2) of such 
Act is amended by inserting before the period at the end 
‘‘; except that such funds shall not be transferable and 
the Federal share for projects and activities carried out 
with such funds shall be determined in accordance with 
section 120(b) of title 23, United States Code’’.
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(c) PLANNING ACTIVITIES PILOT PROGRAM.—Sec-
tion 1221 of such Act is amended by adding at the end 
the following: 
‘‘(f) PLANNING ACTIVITIES PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a pilot program using funds set aside under 
paragraph (4) to support planning and public par-
ticipation activities related to highway and public 
transportation projects. 
‘‘(2) ELIGIBLE ACTIVITIES.—Activities eligible 
to be carried out under the pilot program may in-
clude the following: 
‘‘(A) Improving data collection and anal-
ysis to improve freight movement, intermodal 
connections, and transportation access and effi-
ciency for all users, including children, older in-
dividuals, individuals with disabilities, low-in-
come individuals, and minority communities. 
‘‘(B) Supporting public participation by 
holding public meetings using an interactive 
workshop format facilitated by design or plan-
ning experts (or both) to consider public input 
at the initial stages of project development and 
during other phases of a project.
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‘‘(C) Using innovative planning or design 
visualization and simulation tools to improve 
the evaluation of alternatives and their impacts 
and to enhance public participation in the 
transportation planning process, including tools 
having a structure that enables modifications to 
scenarios and assumptions in real time. 
‘‘(D) Enhancing coordination among trans-
portation, land use, workforce development, 
human service, economic development, and 
other agencies to strengthen access to job train-
ing services, daycare centers, health care facili-
ties, senior centers, public schools, universities, 
and residential areas, including the use of inte-
grated planning and service delivery, especially 
for transit dependent and low-income individ-
uals. 
‘‘(E) Contracting with nonprofit organiza-
tions, universities, and local agencies to deliver 
community-oriented transportation plans and 
projects, including public outreach, context sen-
sitive 
design, 
transit-oriented 
development, 
multimodal corridor investments, commuter 
benefits deployment, and brownfield redevelop-
ment.
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‘‘(F) Measuring and reporting on the an-
nual performance of the transportation system 
(or parts of) relative to State or locally-estab-
lished criteria regarding— 
‘‘(i) maintenance and operating costs 
of the transportation system, vehicle miles 
traveled, peak-period travel times, trans-
portation choices, and mode shares; 
‘‘(ii) location of housing units, jobs, 
medical facilities, and commercial centers 
to transit; 
‘‘(iii) improvements directed to low-in-
come families and older individuals; 
‘‘(iv) transportation-related pollution 
emissions into the air and water; 
‘‘(v) land consumption; and 
‘‘(vi) other locally-significant factors. 
‘‘(G) Improving regional travel and emis-
sion modeling to examine factors not currently 
considered, such as induced travel and land use 
effects of transportation alternatives, types of 
vehicles owned and used by households, time-of- 
day of travel and linkage of trips to each other 
throughout the day, effects of urban design and 
pedestrian and bicycle environment on travel
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behavior, and impacts of alternatives on the dis-
tribution of benefits and burdens among various 
groups protected under title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d et seq.). 
‘‘(3) FEDERAL SHARE.—Notwithstanding sub-
section (e)(2), the Federal share of the cost of ac-
tivities carried out under the pilot program shall be 
100 percent. 
‘‘(4) SET
ASIDE.—The Secretary shall make 
available $1,500,000 of the amounts made available 
to carry out this section for each of fiscal years 
2004 through 2009 to carry out the pilot program 
under this subsection.’’. 
SEC. 
1116. 
DEPLOYMENT 
OF 
MAGNETIC 
LEVITATION 
TRANSPORTATION PROJECTS. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eli-
gible project costs’’— 
(A) means the capital cost of the fixed 
guideway infrastructure of a MAGLEV project, 
including land, piers, guideways, propulsion 
equipment and other components attached to 
guideways, power distribution facilities (includ-
ing substations), control and communications
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facilities, access roads, and storage, repair, and 
maintenance facilities, but not including costs 
incurred for a new station; and 
(B) includes the costs of preconstruction 
planning activities. 
(2) FULL
PROJECT
COSTS.—The term ‘‘full 
project costs’’ means the total capital costs of a 
MAGLEV project, including eligible project costs 
and the costs of stations, vehicles, and equipment. 
(3) MAGLEV.—The term ‘‘MAGLEV’’ means 
transportation systems employing magnetic levita-
tion that would be capable of safe use by the public 
at a speed in excess of 240 miles per hour. 
(4) STATE.—The term ‘‘State’’ has the mean-
ing such term has under section 101(a) of title 23, 
United States Code. 
(b) IN GENERAL.— 
(1) ASSISTANCE
FOR
ELIGIBLE
PROJECTS.— 
The Secretary shall make available financial assist-
ance to pay the Federal share of full project costs 
of eligible projects authorized by this section. 
(2) USE OF ASSISTANCE.—Financial assistance 
provided under paragraph (1) shall be used only to 
pay eligible project costs of projects authorized by 
this section.
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(3) APPLICABILITY OF OTHER LAWS.—Finan-
cial assistance made available under this section, 
and projects assisted with such assistance, shall be 
subject to section 5333(a) of title 49, United States 
Code. 
(c) PROJECT ELIGIBILITY.—To be eligible to receive 
financial assistance under subsection (b), a project shall— 
(1) involve a segment or segments of a high- 
speed ground transportation corridor; 
(2) result in an operating transportation facility 
that provides a revenue producing service; and 
(3) be approved by the Secretary based on an 
application submitted to the Secretary by a State or 
authority designated by 1 or more States. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
this section $15,000,000 for fiscal year 2005 and 
$20,000,000 for each of fiscal years 2006 through 2009. 
(e) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by this sec-
tion shall be available for obligation in the same manner 
as if such funds were apportioned under chapter 1 of title 
23, United States Code; except that the Federal share of 
the full project costs of an eligible project shall be 80 per-
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cent, and such funds shall remain available until expended 
and shall not be transferable. 
SEC. 1117. RECREATIONAL TRAILS. 
(a) RECREATIONAL TRAILS PROGRAM FORMULA.— 
Section 104(h)(1) of title 23, United States Code, is 
amended by striking ‘‘research and technical’’ and all that 
follows through ‘‘Committee’’ and inserting ‘‘research, 
technical assistance, and training under the recreational 
trails program’’. 
(b) PERMISSIBLE USES.—Section 206(d)(2) of such 
title is amended to read as follows: 
‘‘(2) PERMISSIBLE USES.—Permissible uses of 
funds apportioned to a State for a fiscal year to 
carry out this section include— 
‘‘(A) maintenance and restoration of exist-
ing recreational trails; 
‘‘(B) development and rehabilitation of 
trailside and trailhead facilities and trail link-
ages for recreational trails; 
‘‘(C) purchase and lease of recreational 
trail construction and maintenance equipment; 
‘‘(D) construction of new recreational 
trails, except that, in the case of new rec-
reational trails crossing Federal lands, con-
struction of the trails shall be—
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‘‘(i) permissible under other law; 
‘‘(ii) necessary and recommended by a 
statewide comprehensive outdoor recreation 
plan that is required by the Land and 
Water Conservation Fund Act of 1965 (16 
U.S.C. 460l–4 et seq.) and that is in ef-
fect; 
‘‘(iii) approved by the administering 
agency of the State designated under sub-
section (c)(1); and 
‘‘(iv) approved by each Federal agency 
having jurisdiction over the affected lands 
under such terms and conditions as the 
head of the Federal agency determines to 
be appropriate, except that the approval 
shall be contingent on compliance by the 
Federal agency with all applicable laws, in-
cluding the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), the 
Forest and Rangeland Renewable Re-
sources Planning Act of 1974 (16 U.S.C. 
1600 et seq.), and the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 
1701 et seq.);
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‘‘(E) acquisition of easements and fee sim-
ple title to property for recreational trails or 
recreational trail corridors; 
‘‘(F) assessment of trail conditions for ac-
cessibility and maintenance; 
‘‘(G) operation of educational programs to 
promote safety and environmental protection as 
those objectives relate to the use of recreational 
trails, but in an amount not to exceed 5 percent 
of the apportionment made to the State for the 
fiscal year; and 
‘‘(H) payment of costs to the State in-
curred in administering the program, but in an 
amount not to exceed 7 percent of the appor-
tionment made to the State for the fiscal year 
to carry out this section.’’. 
(c) USE OF APPORTIONMENTS.—Section 206(d)(3) 
of such title is amended— 
(1) by striking subparagraph (C); 
(2) by redesignating subparagraph (D) as sub-
paragraph (C); and 
(3) in subparagraph (C) (as so redesignated) by 
striking ‘‘(2)(F)’’ and inserting ‘‘(2)(H)’’. 
(d) FEDERAL SHARE.—Section 206(f) of such title 
is amended—
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(1) in paragraph (1)— 
(A) by inserting ‘‘and the Federal share of 
the administrative costs of a State’’ after 
‘‘project’’; and 
(B) by striking ‘‘not exceed 80 percent’’ 
and inserting ‘‘be determined in accordance 
with section 120(b)’’; 
(2) in paragraph (2)(A) by striking ‘‘80 percent 
of’’ and inserting ‘‘the amount determined in accord-
ance with section 120(b) for’’; 
(3) in paragraph (2)(B) by inserting ‘‘spon-
soring the project’’ after ‘‘Federal agency’’; 
(4) by striking paragraph (5); 
(5) by redesignating paragraph (4) as para-
graph (5); 
(6) in paragraph (5) (as so redesignated) by 
striking ‘‘80 percent’’ and inserting ‘‘the Federal 
share as determined in accordance with section 
120(b)’’; and 
(7) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) USE OF RECREATIONAL TRAILS PROGRAM 
FUNDS
TO
MATCH
OTHER
FEDERAL
PROGRAM 
FUNDS.—Notwithstanding any other provision of 
law, funds made available under this section may be
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used toward the non-Federal matching share for 
other Federal program funds that are— 
‘‘(A) expended in accordance with the re-
quirements of the Federal program relating to 
activities funded and populations served; and 
‘‘(B) expended on a project that is eligible 
for assistance under this section.’’. 
(e) PLANNING AND ENVIRONMENTAL ASSESSMENT 
COSTS INCURRED PRIOR TO PROJECT APPROVAL.—Sec-
tion 206(h)(1) of such title is amended by adding at the 
end the following: 
‘‘(C) PLANNING AND ENVIRONMENTAL AS-
SESSMENT COSTS INCURRED PRIOR TO PROJECT 
APPROVAL.—The Secretary may allow pre-ap-
proval planning and environmental compliance 
costs to be credited toward the non-Federal 
share of the cost of a project described under 
subsection (d)(2) (other than subparagraph (I)) 
in accordance with subsection (f), limited to 
costs incurred less than 18 months prior to 
project approval.’’. 
(f) ENCOURAGEMENT OF USE OF YOUTH CONSERVA-
TION OR SERVICE CORPS.—The Secretary shall encourage 
the States to enter into contracts and cooperative agree-
ments with qualified youth conservation or service corps
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to perform construction and maintenance of recreational 
trails under section 206 of title 23, United States Code. 
SEC. 1118. FEDERAL LANDS HIGHWAYS. 
(a) CONTRACTS
AND AGREEMENTS WITH INDIAN 
TRIBES.—Section 202(d)(3) of title 23, United States 
Code, is amended to read as follows: 
‘‘(3) CONTRACTS AND AGREEMENTS WITH IN-
DIAN TRIBES.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law or any interagency agree-
ment, program guideline, manual, or policy di-
rective, all funds made available to an Indian 
tribal government under this title for a high-
way, road, bridge, parkway, or transit facility 
project that is located on an Indian reservation 
or provides access to the reservation or a com-
munity of the Indian tribe shall be made avail-
able, on the request of the Indian tribal govern-
ment, to the Indian tribal government for use 
in carrying out, in accordance with the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.), contracts and 
agreements for the planning, research, engi-
neering, and construction relating to such 
project.
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‘‘(B) EXCLUSION OF AGENCY PARTICIPA-
TION.—In accordance with subparagraph (A), 
all funds for a project to which subparagraph 
(A) applies shall be paid to the Indian tribal 
government without regard to the organiza-
tional level at which the Department of the In-
terior has previously carried out, or the Depart-
ment of Transportation has previously carried 
out under the Federal lands highway programs, 
the programs, functions, services, or activities 
involved. 
‘‘(C) CONSORTIA.—Two or more Indian 
tribes that are otherwise eligible to participate 
in a project to which this title applies may form 
a consortium to be considered as a single In-
dian tribe for the purpose of participating in 
the project under this section. 
‘‘(D) FUNDING.—The amount an Indian 
tribal government receives for a project under 
subparagraph (A) shall equal the sum of the 
funding that the Indian tribal government 
would otherwise receive for the project in ac-
cordance with the funding formula established 
under this subsection and such additional 
amount as the Secretary determines equal the
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amounts that would have been withheld for the 
costs of the Bureau of Indian Affairs for ad-
ministration of the project. 
‘‘(E) ELIGIBILITY.—An Indian tribal gov-
ernment may receive funding under subpara-
graph (A) for a project in a fiscal year if the 
Indian tribal government demonstrates to the 
satisfaction of the Secretary financial stability 
and financial management capability as dem-
onstrated in the annual auditing required under 
the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) and, 
during the preceding fiscal year, had no uncor-
rected significant and material audit exceptions 
in the required annual audit of the Indian 
tribe’s self-determination contracts or self-gov-
ernance funding agreements with any Federal 
agency. 
‘‘(F) ASSUMPTION OF FUNCTIONS AND DU-
TIES.—An Indian tribal government receiving 
funding under subparagraph (A) for a project 
shall assume all functions and duties that the 
Secretary of the Interior would have performed 
with respect to projects under this chapter, 
other than those functions and duties that in-
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herently cannot be legally transferred under the 
Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450b et seq.). 
‘‘(G) POWERS.—An Indian tribal govern-
ment receiving funding under subparagraph (A) 
for a project shall have all powers that the Sec-
retary of the Interior would have exercised in 
administering the funds transferred to the In-
dian tribal government for such project under 
this section if such funds had not been trans-
ferred, except to the extent that such powers 
are powers that inherently cannot be legally 
transferred under the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 
450b et seq.). 
‘‘(H) DISPUTE RESOLUTION.—In the event 
of a disagreement between the Secretary of 
Transportation or the Secretary of the Interior 
and an Indian tribe over whether a particular 
function, duty, or power may be lawfully trans-
ferred under the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b et 
seq.), the Indian tribe shall have the right to 
pursue all alternative dispute resolutions and 
appeal procedures authorized by such Act, in-
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cluding regulations issued to carry out such 
Act.’’. 
(b) ALASKA NATIVE VILLAGE INVENTORY.—Section 
202(d)(2) of such title is amended by adding at the end 
the following: 
‘‘(E) ALASKA NATIVE ROAD INVENTORY.— 
‘‘(i) IN
GENERAL.—For fiscal year 
2004 and each fiscal year thereafter, any 
allocation of sums authorized to be appro-
priated for Indian reservation roads in 
Alaska shall be based on an inventory of 
roads within the exterior boundaries of vil-
lage corporation land selected pursuant to 
the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 et seq.) that includes all 
routes previously included in such an in-
ventory. The Secretary of Transportation 
and the Secretary of the Interior may in-
clude, in the inventory of roads, those pro-
posed for inclusion by tribal village govern-
ments from among community streets 
within the village and those proposed pri-
mary access routes for inclusion by tribal 
village governments, including roads and 
trails between villages (including links over
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water), roads and trails to landfills, roads 
and trails to drinking water sources, roads 
and trails to natural resources identified 
for economic development, and roads and 
trails that provide access to intermodal ter-
mini, such as airports, harbors, or boat 
landings. 
‘‘(ii) LIMITATION ON PRIMARY ACCESS 
ROUTES.—For purposes of this subpara-
graph, a proposed primary access route is 
the shortest practicable route connecting 2 
points of the proposed route.’’. 
(c) GRANTS
FOR
FINANCING
TRANSPORTATION 
DEBT.—Section 202(d) or such title is amended by insert-
ing before the period at the end the following: ‘‘; except 
that the Secretary may use up to 3 percent of such funds 
for making grants to Indian tribes for the purpose of fi-
nancing transportation debt for individual Indian reserva-
tion roads subject to all requirements governing Federal 
assistance for Indian roads under this section and section 
204’’. 
(d) DEPUTY ASSISTANT SECRETARY OF TRANSPOR-
TATION
FOR TRIBAL GOVERNMENT AFFAIRS.—Section 
102 of title 49, United States Code, is amended—
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(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) DEPUTY ASSISTANT SECRETARY FOR TRIBAL 
GOVERNMENT AFFAIRS.—The Department of Transpor-
tation shall have, within the office of the Secretary, a Dep-
uty Assistant Secretary for Tribal Government Affairs ap-
pointed by the President to plan, coordinate, and imple-
ment the Department of Transportation policy and pro-
grams serving Indian tribes and tribal organizations and 
to coordinate tribal transportation programs and activities 
in all offices and administrations of the Department and 
to be a participant in any negotiated rulemaking related 
to, or has impact on, projects, programs, or funding asso-
ciated with the tribal transportation program.’’. 
(e) ALASKA
NATIVE
VILLAGE
TRANSPORTATION 
PROGRAM.— 
(1) 
ESTABLISHMENT.—Not 
later 
than 
months after the date of enactment of this Act, the 
Secretary and the Denali Commission, in coordina-
tion with the Alaska Federation of Natives, shall es-
tablish an Alaska Native Village transportation pro-
gram to pay the costs of planning, design, construc-
tion, and maintenance of road and other surface
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transportation facilities identified by Alaska Native 
Villages. 
(2) ALASKA
NATIVE
VILLAGE
DEFINED.—In 
this subsection, the term ‘‘Alaska Native Village’’ 
has the same meaning such term has as used by the 
Bureau of Indian Affairs in administering the In-
dian reservation road program under section 202 of 
title 23, United States Code. 
SEC. 1119. CONSERVATION MEASURES. 
(a) REFUGE ROADS.—Section 204(k)(1) of title 23, 
United States Code, is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (B); 
(2) by redesigning subparagraph (C) as sub-
paragraph (D); 
(3) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) construction, maintenance, and im-
provement of wildlife observation infrastructure; 
and’’; and 
(4) in subparagraph (D) (as so redesignated) 
by striking ‘‘maintenance and improvements’’ and 
inserting ‘‘construction, maintenance, and improve-
ments’’.
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(b) FOREST HIGHWAYS.—Of the amounts made 
available for public lands highways under section 1101— 
(1) not to exceed $20,000,000 per fiscal year 
may be used for the maintenance of forest highways; 
(2) not to exceed $2,500,000 per fiscal year 
may be used to repair culverts and bridges on forest 
highways to facilitate appropriate fish passage and 
ensure reasonable flows and to maintain and remove 
such culverts and bridges as appropriate; and 
(3) not to exceed $1,000,000 per fiscal year 
may be used for signage identifying public hunting 
and fishing access. 
(c) WILDLIFE
VEHICLE
COLLISION
REDUCTION 
STUDY.— 
(1) IN GENERAL.—The Secretary shall conduct 
a study of methods to reduce collisions between 
motor vehicles and wildlife (in this subsection re-
ferred to as ‘‘wildlife vehicle collisions’’). 
(2) CONTENTS.— 
(A) AREAS OF STUDY.—The study shall in-
clude an assessment of the causes and impacts 
of wildlife vehicle collisions and solutions and 
best practices for reducing such collisions.
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(B) METHODS
FOR
CONDUCTING
THE 
STUDY.—In carrying out the study, the Sec-
retary shall— 
(i) conduct a thorough literature re-
view; and 
(ii) survey current practices of the 
Department of Transportation. 
(3) CONSULTATION.—In carrying out the study, 
the Secretary shall consult with appropriate experts 
in the field of wildlife vehicle collisions. 
(4) REPORT.— 
(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of this Act, the Sec-
retary shall transmit to Congress a report on 
the results of the study. 
(B) CONTENTS.—The report shall include 
a description of each of the following: 
(i) Causes of wildlife vehicle collisions. 
(ii) Impacts of wildlife vehicle colli-
sions. 
(iii) Solutions to and prevention of 
wildlife vehicle collisions. 
(5) MANUAL.— 
(A) DEVELOPMENT.—Based upon the re-
sults of the study, the Secretary shall develop a
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best practices manual to support State efforts 
to reduce wildlife vehicle collisions. 
(B) AVAILABILITY.—The manual shall be 
made available to States not later than 1 year 
after the date of transmission of the report 
under paragraph (4). 
(C) CONTENTS.—The manual shall in-
clude, at a minimum, the following: 
(i) A list of best practices addressing 
wildlife vehicle collisions. 
(ii) A list of information, technical, 
and funding resources for addressing wild-
life vehicle collisions. 
(iii) Recommendations for addressing 
wildlife vehicle collisions. 
(iv) Guidance for developing a State 
action plan to address wildlife vehicle colli-
sions 
(6) TRAINING.—Based upon the manual devel-
oped under paragraph (5), the Secretary shall de-
velop a training course on addressing wildlife vehicle 
collisions for transportation professionals. 
SEC. 1120. PEDESTRIAN AND CYCLIST EQUITY. 
(a) SAFE ROUTES TO SCHOOL PROGRAM.—
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(1) ESTABLISHMENT.—Subject to the require-
ments of this subsection, the Secretary shall estab-
lish and carry out a safe routes to school program 
for the benefit of children in primary and middle 
schools. 
(2) PURPOSES.—The purposes of the program 
shall be— 
(A) to enable and encourage children, in-
cluding those with disabilities, to walk and bicy-
cle to school; 
(B) to make bicycling and walking to 
school a safer and more appealing transpor-
tation 
alternative, 
thereby 
encouraging 
a 
healthy and active lifestyle from an early age; 
and 
(C) to facilitate the planning, development, 
and implementation of projects and activities 
that will improve safety and reduce traffic, fuel 
consumption, and air pollution in the vicinity of 
schools. 
(3) APPORTIONMENT OF FUNDS.— 
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), amounts made available to 
carry out this subsection for a fiscal year shall
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be apportioned among the States in the ratio 
that— 
(i) the total student enrollment in pri-
mary and middle schools in each State; 
bears to 
(ii) the total student enrollment in 
primary and middle schools in all the 
States. 
(B) 
MINIMUM
APPORTIONMENT.—No 
State shall receive an apportionment under this 
subsection for a fiscal year of less than 
$2,000,000. 
(C) 
SET-ASIDE.—Before 
apportioning 
amounts made available to carry out this sub-
section under this paragraph for a fiscal year, 
the Secretary shall set aside not more than 2 
percent of such amounts for the administrative 
expenses of the Secretary in carrying out this 
subsection. 
(D) DETERMINATION
OF
STUDENT
EN-
ROLLMENTS.—Determinations under this para-
graph concerning student enrollments shall be 
made by the Secretary. 
(4) ADMINISTRATION OF AMOUNTS.—Amounts 
apportioned to a State under this subsection shall be
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administered by the State’s department of transpor-
tation. 
(5) ELIGIBLE
RECIPIENTS.—Amounts appor-
tioned to a State under this subsection shall be used 
by the State to provide financial assistance to State, 
local, and regional agencies, including nonprofit or-
ganizations, that demonstrate an ability to meet the 
requirements of this subsection. 
(6) ELIGIBLE PROJECTS AND ACTIVITIES.— 
(A) 
INFRASTRUCTURE-RELATED 
PROJECTS.— 
(i) IN
GENERAL.—Amounts appor-
tioned to a State under this subsection 
may be used for the planning, design, and 
construction 
of 
infrastructure-related 
projects that will substantially improve the 
ability of students to walk and bike to 
school, including sidewalk improvements, 
traffic calming and speed reduction im-
provements, pedestrian and bicycle cross-
ing improvements, on-street bicycle facili-
ties, off-street bicycle and pedestrian facili-
ties, secure bicycle parking facilities, and 
traffic diversion improvements in the vicin-
ity of schools.
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(ii) LOCATION OF PROJECTS.—Infra-
structure-related projects under subpara-
graph (A) may be carried out on any pub-
lic road or any bicycle or pedestrian path-
way or trail in the vicinity of schools. 
(B) NONINFRASTRUCTURE-RELATED
AC-
TIVITIES.— 
(i) IN
GENERAL.—In addition to 
projects described in subparagraph (A), 
amounts apportioned to a State under this 
subsection may be used for noninfrastruc-
ture-related activities to encourage walking 
and bicycling to school, including public 
awareness campaigns and outreach to 
press and community leaders, traffic edu-
cation and enforcement in the vicinity of 
schools, student sessions on bicycle and pe-
destrian safety, health, and environment, 
and funding for training, volunteers, and 
managers of safe routes to school pro-
grams. 
(ii) ALLOCATION.—Not less than 10 
percent and not more than 30 percent of 
the amount apportioned to a State under 
this subsection for a fiscal year shall be
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used for noninfrastructure-related activities 
under this subparagraph. 
(C) SAFE
ROUTES
TO
SCHOOL
COORDI-
NATOR.—Each State receiving an apportion-
ment under this subsection for a fiscal year 
shall use a sufficient amount of the apportion-
ment to fund a full-time position of coordinator 
of the State’s safe routes to school program. 
(7) CLEARINGHOUSE.— 
(A) IN
GENERAL.—The Secretary shall 
make grants to a national nonprofit organiza-
tion engaged in promoting safe routes to 
schools to— 
(i) operate a national safe routes to 
school clearinghouse; 
(ii) develop information and edu-
cational programs on safe routes to school; 
and 
(iii) provide technical assistance and 
disseminate techniques and strategies used 
for successful safe routes to school pro-
grams. 
(B) FUNDING.—The Secretary shall carry 
out this paragraph using amounts set aside for
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administrative 
expenses 
under 
paragraph 
(3)(C). 
(8) TASK FORCE.— 
(A) IN GENERAL.—The Secretary shall es-
tablish a national safe routes to school task 
force composed of leaders in health, transpor-
tation, and education, including representatives 
of appropriate Federal agencies, to study and 
develop a strategy for advancing safe routes to 
school programs nationwide. 
(B) REPORT.—Not later than March 30, 
2005, the Secretary shall transmit to Congress 
a report containing the results of the study con-
ducted, and a description of the strategy devel-
oped, under subparagraph (A) and information 
regarding the use of funds for infrastructure-re-
lated and noninfrastructure-related activities 
under subparagraphs (A) and (B) of paragraph 
(6). 
(C) FUNDING.—The Secretary shall carry 
out this paragraph using amounts set aside for 
administrative 
expenses 
under 
paragraph 
(3)(C). 
(9) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
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able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that such funds shall not 
be transferable and shall remain available until ex-
pended and the Federal share of the cost of a 
project or activity under this section shall be 100 
percent. Notwithstanding any other provision of law, 
projects assisted under this subsection shall be treat-
ed as projects on a Federal-aid system under such 
chapter. 
(10) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
(A) IN THE VICINITY OF SCHOOLS.—The 
term ‘‘in the vicinity of schools’’ means, with 
respect to a school, the area within bicycling 
and walking distance of the school (approxi-
mately 2 miles). 
(B) PRIMARY
AND
MIDDLE
SCHOOLS.— 
The term ‘‘primary and middle schools’’ means 
schools providing education from kindergarten 
through eighth grade. 
(C) STATE.—The term ‘‘State’’ has the 
meaning such term has in section 101(a) of 
title 23, United States Code.
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(b) NONMOTORIZED TRANSPORTATION PILOT PRO-
GRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish and carry out a nonmotorized transportation 
pilot program to construct, in 4 communities se-
lected by the Secretary, a network of nonmotorized 
transportation infrastructure facilities, including 
sidewalks, bicycle lanes, and pedestrian and bicycle 
trails, that connect directly with transit stations, 
schools, residences, businesses, recreation areas, and 
other community activity centers. 
(2) PURPOSE.—The purpose of the program 
shall be to demonstrate the extent to which bicycling 
and walking can carry a significant part of the 
transportation load, and represent a major portion 
of the transportation solution, within selected com-
munities. 
(3) GRANTS.—In carrying out the program, the 
Secretary may make grants to State, local, and re-
gional agencies, that the Secretary determines are 
suitably equipped and organized to carry out the ob-
jectives and requirements of this subsection. An 
agency that receives a grant under this subsection 
may suballocate grant funds to a nonprofit organiza-
tion to carry out the program under this subsection.
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(4) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of 
the cost of a project carried out under this sub-
section shall be 80 percent, and such funds shall not 
be transferable and shall remain available until ex-
pended. 
(5) STATISTICAL
INFORMATION.—In carrying 
out the program, the Secretary shall develop statis-
tical information on changes in motor vehicle, non-
motorized transportation, and public transportation 
usage in communities participating in the program 
and assess how such changes decrease congestion 
and energy usage, increase the frequency of biking 
and walking, and promote better health and a clean-
er environment. 
(6) REPORTS.—The Secretary shall transmit to 
Congress an interim report not later than September 
30, 2007, and a final report not later than Sep-
tember 30, 2010, on the results of the program. 
SEC. 1121. NATIONAL COMMISSIONS. 
(a) NATIONAL COMMISSION ON FUTURE REVENUE 
SOURCES TO SUPPORT THE HIGHWAY TRUST FUND.—
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(1) ESTABLISHMENT.—There is established a 
National Commission on Future Revenue Sources to 
Support the Highway Trust Fund to conduct— 
(A) a study evaluating alternative short- 
term sources of Highway Trust Fund revenue 
to support the requirements of section 1124; 
and 
(B) a study evaluating alternative long- 
term sources of revenue to support the Highway 
Trust Fund, considering the findings, conclu-
sions, and recommendations of a recent study 
by the Transportation Research Board of the 
National Academy of Sciences on alternatives to 
the fuel tax to support highway program financ-
ing and other relevant prior research. 
(2) FUNCTIONS.—The Commission shall— 
(A) develop recommendations to generate 
Highway Trust Fund revenue necessary to ac-
complish the requirements of section 1124; 
(B) oversee a comprehensive investigation 
of alternatives to replace the fuel tax as the 
principal revenue source to support the High-
way Trust Fund over at least the next 30 years; 
(C) consult with the Secretary of Trans-
portation and the Secretary of the Treasury to
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assure that their views concerning essential at-
tributes of Highway Trust Fund revenue alter-
natives are understood; 
(D) assure that State transportation agen-
cy views on alternative revenue sources to sup-
port State transportation improvement pro-
grams are appropriately considered and that 
any recommended Federal financing strategy 
take into account State financial requirements; 
and 
(E) make specific recommendations re-
garding actions that need to be taken to develop 
alternative revenue sources to support the 
Highway Trust Fund and when those actions 
must be taken. 
(3) SPECIFIC MATTERS TO BE ADDRESSED.— 
The study under paragraph (1)(B)shall address spe-
cifically— 
(A) advantages and disadvantages of alter-
native revenue sources to meet anticipated Fed-
eral surface transportation financial require-
ments; 
(B) the time frame within which actions 
must be taken to transition from the fuel tax to
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alternative revenue sources to support the 
Highway Trust Fund; 
(C) recommendations concerning the most 
promising revenue sources to support long-term 
Federal surface transportation financing re-
quirements; 
(D) development of a broad transition 
strategy to move from the current tax base to 
new funding mechanisms, including the time 
frame for various aspects of the transition 
strategy; 
(E) recommendations for additional re-
search that may be needed to implement rec-
ommended alternatives; and 
(F) the extent to which revenues should re-
flect the relative use of the highway system. 
(4) MATTERS TO CONSIDER AND EVALUATE.— 
To the maximum extent feasible, the Commission, in 
conducting the study under paragraph (1)(B), shall 
consider and evaluate other related work that has 
been done by the Department of Transportation, the 
Department of Energy, the Transportation Research 
Board, and others. In developing recommendations 
under paragraph (2), the Commission shall con-
sider—
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(A) the ability to generate sufficient reve-
nues to meet anticipated long term surface 
transportation financing needs; 
(B) the roles of the various levels of gov-
ernment and the private sector in meeting fu-
ture surface transportation financing needs; 
(C) administrative costs, including enforce-
ment, to implement each option; 
(D) potential taxpayer privacy concerns; 
(E) likely technological advances that could 
ease implementation of each option; 
(F) the equity and economic efficiency of 
each option; 
(G) the flexibility of different options to 
allow various pricing alternatives to be imple-
mented; and 
(H) potential compatibility issues with 
States tax mechanisms under each alternative. 
(5) MEMBERSHIP.— 
(A) COMPOSITION.—The Commission shall 
be composed of nine members of whom— 
(i) three members shall be appointed 
by the Secretary;
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(ii) two members shall be appointed 
by the Speaker of the House of Represent-
atives; 
(iii) one member shall be appointed by 
the minority leader of the House of Rep-
resentatives; 
(iv) two members shall be appointed 
by the majority leader of the Senate; and 
(v) one member shall be appointed by 
the minority leader of the Senate. 
(B) 
QUALIFICATIONS.—Members 
ap-
pointed under subparagraph (A) shall have ex-
perience in public finance, surface transpor-
tation program administration, managing orga-
nizations that use surface transportation facili-
ties, academic research into related issues, or 
other activities that provide unique perspectives 
on current and future requirements for revenue 
sources to support the Highway Trust Fund. 
(C) TERMS.—Members shall be appointed 
for the life of the Commission. 
(D) VACANCIES.—A vacancy on the Com-
mission shall be filled in the manner in which 
the original appointment was made.
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(E) TRAVEL
EXPENSES.—Members shall 
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and 
5703 of title 5, United States Code. 
(F) CHAIRMAN.—The Chairman of the 
Commission shall be elected by the members. 
(6) STAFF.— 
(A) IN GENERAL.—The Commission may 
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the studies 
under this subsection, but the Commission shall 
provide strategic guidance for the studies. 
(B) DETAIL STAFF.—Upon request of the 
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the 
Department of Transportation to the Commis-
sion to assist the Commission in carrying out 
its duties under this subsection. 
(C) COOPERATION.—The Secretary shall 
cooperate with the Commission in conducting 
the studies under this subsection, including pro-
viding the Commission with such nonconfiden-
tial data and information as necessary for con-
ducting and completing the study.
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(7) ADMINISTRATIVE
SUPPORT
SERVICES.— 
Upon the request of the Commission, the Secretary 
shall provide to the Commission, on a reimbursable 
basis, the administrative support and services nec-
essary for the Commission to carry out its respon-
sibilities under this subsection. 
(8) REPORTS AND RECOMMENDATIONS.— 
(A) REVENUE
ACTIONS.—Not later than 
September 30, 2005, the Commission shall 
transmit to Congress a report on revenue ac-
tions that would support the requirements of 
section 1124. 
(B) ALTERNATIVE
LONG-TERM
SOURCES 
OF REVENUE.—Not later than September 30, 
2006, the Commission shall transmit to Con-
gress a report on the results of the study con-
ducted under paragraph (1)(B), relating to al-
ternative long-term sources of revenue to sup-
port the Highway Trust Fund, including rec-
ommendations to address the needs identified in 
the study. 
(9) TERMINATION.—The Commission shall ter-
minate on the 180th day following the date of trans-
mittal of the report under paragraph (8)(B). By 
such 180th day, the Commission shall deliver all
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records and papers of the Commission to the Archi-
vist of the United States for deposit in the National 
Archives. 
(10) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated from the 
Highway Trust Fund (other than the Mass Transit 
Account) $1,500,000 for each of fiscal years 2004 
and 2005 to carry out this subsection. 
(11) APPLICABILITY
OF
TITLE
23.—Funds 
made available to carry out this subsection shall be 
available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 
23, United States Code; except that the Federal 
share of the cost of activities carried out under this 
subsection shall be 100 percent, and such funds 
shall remain available until expended. 
(b) DECLARATION OF POLICY REGARDING FUTURE 
OF THE INTERSTATE HIGHWAY SYSTEM STUDY.—Section 
101(b) of title 23, United States Code, is amended by 
striking the last paragraph and inserting the following: ‘‘It 
is further declared that it is in the national interest to 
preserve and enhance the Dwight D. Eisenhower National 
System of Interstate and Defense Highways to meet the 
Nation’s needs for the 21st century. The current urban 
and long distance personal travel and freight movement
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demands have surpassed the vision of the original Inter-
state System and travel demand patterns are expected to 
change. Continued planning for and investment in the 
Interstate System is critical to assure it adequately meets 
the changing travel demands of the future. Among the 
foremost needs that the Interstate System must provide 
are safe, efficient, and reliable (1) national and inter-
regional personal mobility, (2) flow of interstate com-
merce, and (3) travel movements essential for national se-
curity. To the maximum extent, actions under this title 
should address congestion, safety, and freight transpor-
tation to provide for a strong and vigorous national econ-
omy. The Interstate System is hereby declared to be the 
Nation’s premiere highway system, essential for the Na-
tion’s economic vitality, national security, and general wel-
fare. The Secretary of Transportation is directed to take 
appropriate actions to preserve and enhance the Interstate 
System to meet the needs of the 21st century in accord-
ance with this title.’’. 
(c) NATIONAL COMMISSION ON FUTURE OF INTER-
STATE HIGHWAY SYSTEM.— 
(1) ESTABLISHMENT.—There is established a 
National Commission on the Future of the Dwight 
D. Eisenhower National System of Interstate and
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Defense Highways (in this subsection referred to as 
the ‘‘Interstate System’’). 
(2) FUNCTION.—The Commission shall— 
(A) conduct a study of the current condi-
tion and future of the Interstate System and 
develop a conceptual plan with alternative ap-
proaches for the future of the Interstate System 
to assure that the Interstate System will con-
tinue to serve the needs of the Nation; 
(B) assure that State transportation agen-
cy views are considered; and 
(C) make specific recommendations regard-
ing those design standards, Federal policies, 
and legislative changes that must be made to 
assure the national interests are served in meet-
ing future Interstate System needs. 
(3) SPECIFIC MATTERS TO BE ADDRESSED.— 
The Commission shall assure that the study under 
this subsection specifically addresses the following: 
(A) CURRENT
CONDITION.—The current 
condition and performance of the Interstate 
System, including physical condition of bridges 
and pavements and operational characteristics 
and performance, shall be examined, relying 
primarily on existing data sources.
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(B) FUTURE ASSESSMENT.—The future of 
the Interstate System, based on a range of leg-
islative and policy approaches for 15-, 30-, and 
50-year horizons. 
(4) SPECIFIC
ISSUES
AND
DETAILS
TO
AD-
DRESS.—The following specific issues and details 
shall be addressed as a part of the study under this 
subsection: 
(A) 
DEMOGRAPHICS.—Expected 
demo-
graphics and business uses that impact trans-
portation. 
(B) USAGE.—Expected system use and ef-
fects of changing vehicle types, fleet size and 
weights, and traffic volumes. 
(C) NATURAL
DISASTER.—Seismic and 
other vulnerabilities and their potential impacts. 
(D) DESIGN
STANDARDS.—Desirable de-
sign policies and standards for future improve-
ments, including safety improvement and addi-
tional access points. 
(E) SYSTEM WIDE NEEDS.—Identification 
of both urban and rural needs. 
(F) POTENTIAL SYSTEM EXPANSION, UP-
GRADES, OR OTHER CHANGES.—Deployment of 
advanced materials and intelligent technologies;
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critical multi-state rural corridors needing ca-
pacity, safety, and operational enhancements; 
urban and multi-state corridor additions; by-
passes of major cities that ensure efficient long- 
haul travel; improvements to inter-modal link-
ages; strategies to enhance asset preservation; 
and implementation strategies. 
(G) COMMUNITY
VALUES.—Consideration 
of alternative approaches to maintaining or en-
hancing community values in those neighbor-
hoods adjacent to the Interstate System. 
(H) ENVIRONMENTAL ISSUES.—Consider-
ation of alternative approaches to addressing 
environmental 
concerns 
relative 
to 
rec-
ommended alternatives. 
(I) SYSTEM
PERFORMANCE.—Evaluation 
and assessment of the current and future capa-
bilities for conducting system-wide real-time 
performance data collection and analysis, traffic 
monitoring, system operations and manage-
ment. 
(5) ALTERNATIVES.—A range of policy rec-
ommendations shall be developed as a part of the 
plan under this subsection to address identified fu-
ture needs of the Interstate System. The alternatives
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shall include funding needs and potential approaches 
to provide those funds. 
(6) MEMBERSHIP.— 
(A) COMPOSITION.—The Commission shall 
be composed of nine members of whom— 
(i) three members shall be appointed 
by the Secretary; 
(ii) two members shall be appointed 
by the Speaker of the House of Represent-
atives; 
(iii) one member shall be appointed by 
the minority leader of the House of Rep-
resentatives; 
(iv) two members shall be appointed 
by the majority leader of the Senate; and 
(v) one member shall be appointed by 
the minority leader of the Senate. 
(B) 
QUALIFICATIONS.—Members 
ap-
pointed under subparagraph (A) shall be ap-
pointed from among individuals that have a 
concern for maintaining a strong role for the 
Interstate System in the future of the Nation 
and may include representatives from Federal, 
State, and local governments, other transpor-
tation authorities or agencies, and organizations
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representing surface transportation owners and 
operators. 
(C) TERMS.—Members shall be appointed 
for the life of the Commission. 
(D) VACANCIES.—A vacancy in the Com-
mission shall be filled in the manner in which 
the original appointment was made. 
(E) TRAVEL
EXPENSES.—Member shall 
serve without pay but shall receive travel ex-
penses, including per diem in lieu of subsist-
ence, in accordance with sections 5702 and 
5703 of title 5, United States Code. 
(F) CHAIRMAN.—The Chairman of the 
Commission shall be elected by the members. 
(7) STAFF.— 
(A) IN GENERAL.—The Commission may 
engage the services of an appropriate organiza-
tion, agency, or firm to conduct the study under 
this subsection, but the Commission shall pro-
vide strategic guidance for the study. 
(B) DETAIL STAFF.—Upon request of the 
Commission, the Secretary may detail, on a re-
imbursable basis, any of the personnel of the 
Department of Transportation to the Commis-
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sion to assist the Commission in carrying out 
its duties under this subsection. 
(C) COOPERATION.—The Secretary shall 
cooperate with the Commission in the study, in-
cluding providing the Commission with such 
nonconfidential data and information as nec-
essary for conducting and completing the study. 
(8) ADMINISTRATIVE
SUPPORT
SERVICES.— 
Upon the request of the Commission, the Secretary 
shall provide to the Commission, on a reimbursable 
basis, the administrative support and services nec-
essary for the Commission to carry out its respon-
sibilities under this subsection. 
(9) REPORT
AND
RECOMMENDATIONS.—Not 
later than September 30, 2006, the Commission 
shall transmit to Congress a final report on the re-
sults of the study conducted under this subsection, 
including recommendations to address the needs 
identified in the study. 
(10) TERMINATION.—The Commission shall 
terminate on the 180th day following the date of 
transmittal of the report under paragraph (9). By 
such 180th day, the Commission shall deliver all 
records and papers of the Commission to the Archi-
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vist of the United States for deposit in the National 
Archives. 
(11) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated from the 
Highway Trust Funds (other than the Mass Transit 
Account) to carry out this subsection $1,000,000 for 
each of fiscal years 2005 and 2006. 
(12) APPLICABILITY
OF
TITLE
23, UNITED 
STATES
CODE.—Funds authorized to be appro-
priated by this section shall be available for obliga-
tion in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States 
Code; except that the Federal share of the cost of 
activities carried out under this subsection shall be 
100 percent and such funds shall remain available 
until expended. 
SEC. 1122. ADJUSTMENTS FOR THE SURFACE TRANSPOR-
TATION EXTENSION ACT OF 2003. 
[Reserved] 
SEC. 1123. ROADWAY SAFETY. 
(a) ROAD SAFETY.— 
(1) IN
GENERAL.—The Secretary shall enter 
into an agreement to assist in the activities of a na-
tional nonprofit organization that is dedicated solely 
to improving public road safety—
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(A) by improving the quality of data per-
taining to public road hazards and design fea-
tures that affect or increase the severity of 
motor vehicle crashes; 
(B) by developing and carrying out a pub-
lic awareness campaign to educate State and 
local transportation officials, public safety offi-
cials, and motorists regarding the extent to 
which public road hazards and design features 
are a factor in motor vehicle crashes; and 
(C) by promoting public road safety re-
search and technology transfer activities. 
(2) FUNDING.—There is authorized to be ap-
propriated from the Highway Trust Fund (other 
than the Mass Transit Account) $500,000 for each 
of fiscal years 2004 through 2009 to carry out this 
subsection. 
(3) APPLICABILITY OF TITLE 23.—Funds made 
available by this subsection shall be available for ob-
ligation in the same manner as if such funds were 
apportioned under chapter 1 of title 23, United 
States Code, except that the funds shall remain 
available until expended. 
(b) BICYCLE AND PEDESTRIAN SAFETY GRANTS.—
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(1) IN GENERAL.—The Secretary shall make 
grants to a national, not-for-profit organization en-
gaged in promoting bicycle and pedestrian safety— 
(A) to operate a national bicycle and pe-
destrian clearinghouse; 
(B) to develop information and educational 
programs; and 
(C) to disseminate techniques and strate-
gies for improving bicycle and pedestrian safety. 
(2) FUNDING.—There is authorized to be ap-
propriated from the Highway Trust Fund (other 
than the Mass Transit Account) $500,000 for each 
of fiscal years 2004 through 2009 to carry out this 
subsection. 
(3) APPLICABILITY OF TITLE 23.—Funds made 
available by this subsection shall be available for ob-
ligation in the same manner as if such funds were 
apportioned under chapter 1 of title 23, United 
States Code, except that the funds shall remain 
available until expended. 
SEC. 1124. EQUITY REQUIREMENT. 
(a) GENERAL PROVISIONS.—The Secretary may not 
apportion before August 1, 2006, any funds for any of 
the programs referred to in subsection (b) for fiscal year
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2006 unless, after the date of enactment of this Act, a 
law has been enacted that— 
(1) increases the guaranteed rate of return pur-
suant to section 105 of title 23, United States Code, 
to 92 percent in fiscal year 2006, 93 percent in fis-
cal year 2007, 94 percent in fiscal year 2008, and 
95 percent in fiscal year 2009; and 
(2) requires that each State receive apportion-
ments for such programs for each of such fiscal 
years that in the aggregate are at least equal to the 
greater of— 
(A) the State’s minimum guaranteed rate 
of return required under paragraph (1); and 
(B) the State’s prior fiscal year’s appor-
tioned highway funds for programs referred in 
subsection (b) plus an amount equal to the 
State’s prior year apportioned funds for such 
programs multiplied by the percentage increase 
in the consumer price index during the 12- 
month period ending June 30 of the calendar 
year in which the fiscal year begins. 
(b) APPLICABILITY.—The withholding of apportioned 
funds under subsection (a) shall apply to the following 
programs:
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(1) The National Highway System program 
under section 103(b) of title 23, United States Code. 
(2) The high priority projects program under 
section 117 of such title. 
(3) The Interstate maintenance program under 
section 119 of such title. 
(4) The surface transportation program under 
section 133 of such title. 
(5) Metropolitan planning under chapter 52 of 
title 49, United States Code. 
(6) The highway bridge replacement and reha-
bilitation program under section 144 of title 23, 
United States Code. 
(7) The congestion mitigation and air quality 
improvement program under section 149 of such 
title. 
(8) The recreational trails program under sec-
tion 206 of such title. 
(9) The Appalachian development highway sys-
tem under subtitle IV of title 40, United States 
Code. 
(10) The freight intermodal connectors program 
under section 1303 of this Act. 
(11) The coordinated border infrastructure pro-
gram under section 1302 of this Act.
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(12) The high risk rural road safety improve-
ment program under section 1403 of this Act. 
(13) The safe routes to schools program under 
section 1120 of this Act. 
(14) The minimum guarantee program under 
section 105 of title 23, United States Code. 
(c) CONSIDERATION OF COMMISSION FINDINGS.—In 
considering a law that increases the guaranteed rate of 
return referred to in subsection (a), Congress should con-
sider the findings of the report on alternative short-term 
sources of Highway Trust Fund revenue to be published 
by the National Commission on Future Revenue Sources 
to Support the Highway Trust Fund pursuant to section 
1121 of this Act. 
Subtitle B—Congestion Relief 
SEC. 1201. MOTOR VEHICLE CONGESTION RELIEF. 
(a) IN GENERAL.—Title 23, United States Code, is 
amended by inserting after section 138 the following: 
‘‘§ 139. Motor vehicle congestion relief 
‘‘(a) IN GENERAL.—Each State that has an urban-
ized area with an urbanized area population of over 
200,000 individuals shall obligate in each of fiscal years 
2004 through 2009 a portion of the State’s apportion-
ments under section 104(b) in such fiscal year, as cal-
culated under subsection (b), for congestion relief activi-
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ties in such urbanized areas in accordance with this sec-
tion. 
‘‘(b) CALCULATION OF AMOUNT.—The portion of a 
State’s apportionments for a fiscal year to be obligated 
for congestion relief activities under subsection (a) shall 
be determined by multiplying— 
‘‘(1) the total of amounts apportioned to the 
State under each of paragraphs (1), (2), (3), and (4) 
of section 104(b) in such fiscal year; by 
‘‘(2) 10 percent; by 
‘‘(3) the percentage of the State’s population 
residing in urbanized areas of the State with an ur-
banized area population of over 200,000 individuals. 
‘‘(c) ALLOCATION
BETWEEN
UNDER
ONE
AND 
UNDER THREE CONGESTION RELIEF ACTIVITIES.—Of 
the total amount of a State’s apportionments to be obli-
gated for congestion relief activities for a fiscal year as 
calculated under subsection (b)— 
‘‘(1) 40 percent shall be obligated for under one 
congestion relief activities; 
‘‘(2) 35 percent shall be obligated for under 
three congestion relief activities; and 
‘‘(3) 25 percent shall be obligated at the discre-
tion of the State department of transportation for 1 
or more of the following:
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‘‘(A) Under one congestion relief activities. 
‘‘(B) Under three congestion relief activi-
ties. 
‘‘(C) Capital costs for transit projects that 
are eligible for assistance under chapter 53 of 
title 49. 
‘‘(D) Demand relief projects and activities 
that shift demand to non-peak hours or to other 
modes of transportation or that reduce the 
overall level of demand for roads through such 
means as telecommuting, ridesharing, alter-
native work hour programs, and value pricing. 
‘‘(d) OBLIGATION OF AMOUNTS.— 
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by 
a State for congestion relief activities under sub-
section (a) shall be allocated among the individual 
programs for which funds are apportioned under 
sections 
104(b)(1), 
104(b)(2), 
104(b)(3), 
and 
104(b)(4). 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
as requiring a State to obligate proportional or equal 
amounts 
under 
sections 
104(b)(1), 
104(b)(2),
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104(b)(3), and 104(b)(4) for any congestion relief 
activity under this section. 
‘‘(e) LIMITATION ON STATUTORY CONSTRUCTION.— 
Nothing in this section shall be construed as altering or 
otherwise affecting the applicability of the requirements 
of this chapter (including requirements relating to the eli-
gibility of a project for assistance under the program, the 
location of the project, and the Federal-share payable on 
account of the project) to amounts apportioned to a State 
for a program under section 104(b) that are obligated by 
the State for congestion relief activities under subsection 
(a). 
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section. 
‘‘(g) TRANSFERS.— 
‘‘(1) IN
GENERAL.—A State may transfer a 
portion of the amount that the State must obligate 
for under one congestion relief activities in a fiscal 
year under this section to the amount the State 
must obligate for under three congestion relief ac-
tivities under this section if the State certifies to the 
Secretary that there are no under one congestion re-
lief activities for which such portion can be obligated 
in such fiscal year and the Secretary does not dis-
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approve such transfer within 30 days after the date 
of such certification. 
‘‘(2) LIMITATION.—The amount that a State 
may transfer in a fiscal year under this subsection 
may not reduce the amount the State must obligate 
for under one congestion relief activities to less than 
10 percent of the total amount of the State’s appor-
tionments to be obligated for congestion relief activi-
ties for such fiscal year as calculated under sub-
section (b). 
‘‘(3) TREATMENT.—Amounts transferred by a 
State under this subsection for a fiscal year shall be 
included in the amount of the State’s apportion-
ments allocated for under three congestion relief ac-
tivities for such fiscal year under subsection (c)(2). 
‘‘(h) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) CONGESTION RELIEF ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘congestion 
relief activity’ means any activity, project, or 
program that has as its primary purpose, as de-
termined by the State transportation depart-
ment, the relief of motor vehicle congestion. 
‘‘(B) INCLUSIONS.—Such term includes 
the following:
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‘‘(i) Relief of motor vehicle congestion 
through additional capacity, construction 
of additional lanes, improvements to inter-
changes, improved access to major termi-
nals, construction of parallel roads, con-
struction of truck only lanes, and major 
arterial improvements. 
‘‘(ii) Transportation systemwide oper-
ational improvements targeted at increas-
ing motor vehicle travel reliability through 
such means as incident management pro-
grams, traffic monitoring and surveillance, 
and traveler information initiatives. 
‘‘(iii) Maximizing efficient use of ex-
isting motor vehicle travel capacity through 
such means as reversible lanes, coordinated 
traffic signalization, and managed lanes or 
other lane management strategies. 
‘‘(C) EXCLUSIONS.—Such term does not 
include demand relief projects and activities 
that shift demand to non-peak hours or to other 
modes of transportation or that reduce the 
overall level of demand for roads through such 
means as telecommuting, ridesharing, alter-
native work hour programs, and value pricing.
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‘‘(2) UNDER ONE CONGESTION RELIEF ACTIVI-
TIES.—The term ‘under one congestion relief activ-
ity’ means a congestion relief activity that— 
‘‘(A) will be completed within one year 
after the date of commencement of onsite im-
provements; 
‘‘(B) has a total projected cost of less than 
$1,000,000; and 
‘‘(C) will improve conditions in the applica-
ble urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization. 
‘‘(3) UNDER THREE CONGESTION RELIEF AC-
TIVITIES.—The term ‘under three congestion relief 
activities’ means congestion relief activities that— 
‘‘(A) will be completed within 3 years after 
the date of commencement of onsite improve-
ments; and 
‘‘(B) will improve conditions in the applica-
ble urbanized area or is an element of the con-
gestion management system of the applicable 
metropolitan planning organization.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter I of such title is amended by inserting after the 
item relating to section 138 the following: 
‘‘139. Motor vehicle congestion relief.’’.
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(c) MOTOR VEHICLE DEFINED.—Title 23, United 
States Code, is amended— 
(1) in section 154(a)(2), relating to the defini-
tion of motor vehicle, by inserting ‘‘streets, roads, 
and’’ before ‘‘highways’’; 
(2) by redesignating paragraph (2) of section 
154(a) as paragraph (38); 
(3) by moving such redesignated paragraph 
from section 154(a) to the end of section 101(a); 
(4) by redesignating paragraphs (3) and (4) of 
section 154(a) as paragraphs (2) and (3), respec-
tively; 
(5) in section 153(i)— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; 
(6) in section 164(a)(4) by striking ‘‘means’’ 
and all that follows through ‘‘rail line or’’ and in-
serting ‘‘does not include’’; and 
(7) in section 405(f)— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3), (4), 
(5), and (6) as paragraphs (2), (3), (4), and 
(5).
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SEC. 1202. TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS. 
(a) DEFINITIONS.— 
(1) OPERATING
COSTS
FOR
TRAFFIC
MONI-
TORING, 
MANAGEMENT, 
AND
CONTROL.—Section 
101(a)(17) of title 23, United States Code, is 
amended by inserting ‘‘transportation systems man-
agement and operations and’’ after ‘‘associated 
with’’. 
(2) 
OPERATIONAL
IMPROVEMENT.—Section 
101(a)(18)(A)(i) of such title is amended— 
(A) by inserting ‘‘transportation systems 
management and operations, including’’ after 
‘‘for’’; and 
(B) by inserting ‘‘equipment and programs 
for transportation response to natural disas-
ters,’’ after ‘‘incident management programs,’’. 
(3) TRANSPORTATION SYSTEMS MANAGEMENT 
AND OPERATIONS.—Section 101(a) of such title is 
further amended by adding at the end the following: 
‘‘(39) TRANSPORTATION
SYSTEMS
MANAGE-
MENT AND OPERATIONS.— 
‘‘(A) IN GENERAL.—The term ‘transpor-
tation systems management and operations’ 
means an integrated program to optimize the 
performance of existing infrastructure through
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the implementation of multimodal and inter-
modal, cross-jurisdictional systems, services, 
and projects designed to preserve capacity and 
improve the security, safety, and reliability of 
Federal-aid highways. 
‘‘(B) INCLUDED ACTIVITIES AND IMPROVE-
MENTS.—The term includes regional operations 
collaboration and coordination activities be-
tween transportation and public safety agencies 
and improvements such as traffic detection and 
surveillance, 
arterial 
management, 
freeway 
management, demand management, work zone 
management, emergency management, elec-
tronic toll collection, automated enforcement, 
traffic operations measures to improve capacity, 
traffic signal coordination, optimization of traf-
fic signal timing, traffic incident management, 
roadway weather management, traveler infor-
mation services, commercial vehicle operations, 
traffic control, freight management, and coordi-
nation of highway, rail, transit, bicycle, and pe-
destrian operations.’’. 
(b) CONGESTION MITIGATION AND AIR QUALITY IM-
PROVEMENT PROGRAM ELIGIBILITY.—Section 149(b)(5) 
of such title is amended by inserting ‘‘improve transpor-
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tation systems management and operations,’’ after ‘‘inter-
sections,’’. 
(c) SURFACE TRANSPORTATION PROGRAM ELIGI-
BILITY.—Section 133(b) of such title is amended— 
(1) by redesignating paragraphs (13) and (14) 
as paragraphs (12) and (13), respectively; and 
(2) by adding at the end the following: 
‘‘(14) Regional transportation operations col-
laboration and coordination activities that are asso-
ciated with regional improvements, including activi-
ties for traffic incident management, technology de-
ployment, emergency management and response, 
traveler information, and regional congestion re-
lief.’’. 
(d) NATIONAL HIGHWAY SYSTEM ELIGIBILITY.— 
Section 103(b)(6) of such title is amended by adding at 
the end the following: 
‘‘(Q) Capital, operating, and systems main-
tenance costs for transportation systems man-
agement and operations.’’. 
(e) TRANSPORTATION SYSTEMS MANAGEMENT AND 
OPERATIONS.—Subchapter I of chapter 1 of such title is 
further amended by adding at the end the following:
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‘‘§ 166. Transportation systems management and op-
erations 
‘‘(a) AUTHORITY.—The Secretary may— 
‘‘(1) encourage transportation system man-
agers, operators, public safety officials, and trans-
portation planners within an urbanized area, who 
are actively engaged in and responsible for con-
ducting activities relating to day-to-day manage-
ment, operations, public safety, and planning of 
transportation facilities and services, to collaborate 
and coordinate on a regional level in a continuous 
and sustained manner for improved transportation 
systems management and operations, including, at a 
minimum— 
‘‘(A) developing a regional concept of oper-
ations that defines a regional strategy shared 
by all transportation and public safety partici-
pants for how the region’s systems should be 
managed, operated, and measured; 
‘‘(B) sharing of information among opera-
tors, service providers, public safety officials, 
and the general public; and 
‘‘(C) guiding, in a regionally-coordinated 
manner, the implementation of regional trans-
portation system management and operations 
initiatives, including emergency evacuation and
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response, traffic incident management, tech-
nology deployment, and traveler information 
systems delivery, in a manner consistent with 
and integrated into the ongoing metropolitan 
and statewide transportation planning processes 
and regional intelligent transportation system 
architecture, if required; and 
‘‘(2) encourage States to establish a system of 
basic real-time monitoring capability for the surface 
transportation system and provide the capability and 
means to share that data among agencies (including 
highway, transit, and public safety agencies), juris-
dictions (including States, cities, counties, and areas 
represented by metropolitan planning organizations), 
private-sector entities, and the traveling public. 
‘‘(b) EXECUTION.—To support the successful execu-
tion of transportation systems management and oper-
ations activities, the Secretary may undertake the fol-
lowing activities: 
‘‘(1) Assist and cooperate with other Federal 
departments and agencies, State and local govern-
ments, metropolitan planning organizations, private 
industry representatives, and other interested parties 
to improve regional collaboration and real-time infor-
mation sharing between transportation system man-
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agers and operators, public safety officials, emer-
gency managers, and the general public to increase 
the security, safety, and reliability of Federal-aid 
highways. 
‘‘(2) Issue, if necessary, new guidance or regu-
lations for the procurement of transportation system 
management and operations facilities, equipment, 
and services, including equipment procured in prepa-
ration for natural disasters and emergencies, system 
hardware, software, and software integration serv-
ices.’’. 
(f) CONFORMING AMENDMENT.—The analysis for 
such chapter is further amended by adding at the end the 
following: 
‘‘166. Transportation systems management and operations.’’. 
(g) INTELLIGENT TRANSPORTATION SYSTEM PRO-
CUREMENT POLICY.— 
(1) STUDY.—The Secretary shall— 
(A) conduct a study of the current policies 
and practices for the procurement of intelligent 
transportation system facilities, equipment, and 
services; and 
(B) develop a conceptual plan with alter-
native approaches for expediting and stream-
lining such procurements at the State level.
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(2) RECOMMENDATIONS.—Based on the results 
of the study, the Secretary shall make recommenda-
tions in the report under paragraph (4) regarding 
procurement standards, including recommendations 
regarding any changes in Federal and State stat-
utes, regulations, and policies necessary to ensure 
that national interests are served in meeting future 
intelligent transportation system needs. 
(3) SPECIFIC MATTERS TO BE ADDRESSED.— 
The study under this subsection shall specifically ad-
dress the following: 
(A) CURRENT
CONDITION.—The current 
practices and policies relating to procurement of 
intelligent 
transportation 
system 
facilities, 
equipment, and services, including equipment 
procured in preparation for natural disasters 
and emergencies, system hardware, software, 
and software integration services. 
(B) ASSESSMENT
OF
NEED
FOR
POLICY 
REFORM.—The ability of current practices and 
policies to achieve the successful implementa-
tion of intelligent transportation system goals 
and the need for national policy reform to expe-
dite and streamline procurements necessary to 
meet such goals.
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(C) ALTERNATIVES.—The range of legisla-
tive, regulatory, and policy alternatives to ad-
dress identified needs and goals, including fund-
ing needs. 
(D) 
RECOMMENDATIONS.—Recommenda-
tions regarding procurement standards, includ-
ing recommendations regarding any changes in 
Federal and State statutes, regulations, and 
policies necessary for expedited and streamlined 
procurements. 
(4) REPORT
AND
RECOMMENDATIONS.—Not 
later than September 30, 2005, the Secretary shall 
transmit to the appropriate committees of Congress 
a final report regarding the results of the study con-
ducted under this subsection and recommendations 
to address the needs identified in such study. 
(5) 
INITIATION
OF
RULEMAKING
PRO-
CEEDING.—To the extent any recommendation made 
by the Secretary under this subsection may be im-
plemented by regulation, the Secretary shall initiate 
a rulemaking proceeding to address such rec-
ommendation not later than the 90th day following 
the date of submission of the report under para-
graph (4).
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(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated from the 
Highway Trust Fund (other than the Mass Transit 
Account) $1,000,000 in fiscal year 2004 to carry out 
this subsection. 
(7) APPLICABILITY OF TITLE 23.—Funds made 
available to carry out this subsection shall be avail-
able for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of 
the cost of the study under this subsection shall be 
100 percent and such funds shall remain available 
until expended. 
SEC. 1203. REAL-TIME SYSTEM MANAGEMENT INFORMA-
TION PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
a real-time system management information pro-
gram to provide, in all States, the capability to mon-
itor, in real-time, the traffic and travel conditions of 
the Nation’s major highways and to share that in-
formation to improve the security of the surface 
transportation system, to address congestion prob-
lems, to support improved response to weather 
events and surface transportation incidents, and to
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facilitate national and regional highway traveler in-
formation. 
(2) PURPOSES.—The purposes of the real-time 
system management information program are to— 
(A) establish, in all States, a system of 
basic real-time information for managing and 
operating the surface transportation system; 
(B) identify longer range real-time high-
way and transit monitoring needs and develop 
plans and strategies for meeting such needs; 
and 
(C) provide the capability and means to 
share that data with State and local govern-
ments and the traveling public. 
(b) NATIONAL STEERING COMMITTEE.— 
(1) IN GENERAL.—The Secretary shall establish 
a national steering committee to assist in the devel-
opment of data exchange formats under subsection 
(c). 
(2) REPRESENTATIVES.—The national steering 
committee shall consist of representatives of State 
transportation departments, metropolitan planning 
organizations, local governments, nonprofit entities, 
the private sector, and academia.
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(3) PURPOSE.—The purpose of the national 
steering committee shall be to provide guidance re-
garding the content and uniformity of data exchange 
formats. 
(c) DATA EXCHANGE FORMATS.—Not later than 2 
years after the date of enactment of this Act, the Sec-
retary shall establish data exchange formats based on rec-
ommendations of the steering committee established under 
subsection (b) to ensure that the data provided by highway 
and transit monitoring systems, including statewide inci-
dent reporting systems, can readily be exchanged across 
jurisdictional boundaries, facilitating nationwide avail-
ability of information. 
(d) REGIONAL INTELLIGENT TRANSPORTATION SYS-
TEM ARCHITECTURE.— 
(1) ADDRESSING
INFORMATION
NEEDS.—As 
State and local governments develop or update re-
gional intelligent transportation system architec-
tures, described in section 940.9 of title 23, Code of 
Federal Regulations, such governments shall explic-
itly address real-time highway and transit informa-
tion needs and the systems needed to meet such 
needs, including addressing coverage, monitoring 
systems, data fusion and archiving, and methods of
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exchanging or sharing highway and transit informa-
tion. 
(2) DATA EXCHANGE.—States shall incorporate 
the data exchange formats established by the Sec-
retary under subsection (c) to ensure that the data 
provided by highway and transit monitoring systems 
may readily be exchanged with State and local gov-
ernments and may be made available to the traveling 
public. 
(e) ELIGIBILITY.—Subject to project approval by the 
Secretary, a State may obligate funds apportioned to the 
State under sections 104(b)(1), 104(b)(2), and 104(b)(3) 
of title 23, United States Code, for activities related to 
the planning and deployment of real-time monitoring ele-
ments that advance the goals and purposes described in 
subsection (a). 
(f) LIMITATION ON STATUTORY CONSTRUCTION.— 
Nothing in this section shall be construed as altering or 
otherwise affecting the applicability of the requirements 
of chapter 1 of title 23, United States Code (including 
requirements relating to the eligibility of a project for as-
sistance under the program, the location of the project, 
and the Federal-share payable on account of the project), 
to amounts apportioned to a State for a program under
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section 104(b) that are obligated by the State for activities 
and projects under this section. 
(g) STATEWIDE INCIDENT REPORTING SYSTEM DE-
FINED.—In this section, the term ‘‘statewide incident re-
porting system’’ means a statewide system for facilitating 
the real-time electronic reporting of surface transportation 
incidents to a central location for use in monitoring the 
event, providing accurate traveler information, and re-
sponding to the incident as appropriate. 
SEC. 1204. EXPEDITED NATIONAL INTELLIGENT TRANSPOR-
TATION SYSTEMS DEPLOYMENT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a comprehensive program to accelerate the integration, 
interoperability, and deployment of intelligent transpor-
tation systems in order to improve the performance of the 
surface transportation system in metropolitan and rural 
areas. 
(b) SELECTION OF MODEL PROJECTS.—Under the 
program, the Secretary may make grants, through com-
petitive solicitation, for projects that will serve as models 
to improve transportation efficiency, promote surface 
transportation safety (including safe freight movement), 
increase traffic flow (including the flow of intermodal trav-
el at ports of entry), reduce emissions of air pollutants, 
improve traveler information, enhance alternative trans-
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portation modes, build on existing intelligent transpor-
tation system projects, and promote tourism. 
(c) OTHER PROJECTS, PROGRAMS, AND ACTIVI-
TIES.—Under the program, the Secretary may make 
grants for projects, programs, and activities in metropoli-
tan and rural areas that— 
(1) contribute to national deployment goals and 
objectives outlined in the national intelligent trans-
portation system program plan; 
(2) promote cooperation among agencies, juris-
dictions, and the private sector, as evidenced by 
signed memoranda of understanding that clearly de-
fine the responsibilities and relations of all parties to 
a partnership arrangement, including institutional 
relationships and financial agreements needed to 
support deployment of intelligent transportation sys-
tems; 
(3) encourage private sector involvement and fi-
nancial commitment to such deployment to the max-
imum extent practicable through innovative financial 
arrangements, especially public-private partnerships, 
including arrangements that generate revenue to off-
set public investment costs; 
(4) enhance fully integrated intelligent trans-
portation system deployment;
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(5) create technical capacity for effective oper-
ations and maintenance of such systems; 
(6) improve safety, mobility, geographic and re-
gional diversity, and economic development in de-
ployment of such systems; 
(7) advance deployment of the 511 traveler in-
formation program; and 
(8) advance deployment of other national sys-
tems, including a statewide incident reporting sys-
tem, wireless e-911 system, and road weather infor-
mation system. 
(d) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated under sec-
tion 1101(a)(16) of this Act shall be available for obliga-
tion to carry out subsection (c)(7) in the same manner 
and to the same extent as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that the Federal share of the cost of projects carried out 
under subsection (c)(7) shall be 80 percent and such funds 
shall remain available until expended. 
SEC. 1205. INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT. 
(a) PURPOSE.—The purpose of this section is to en-
sure that a minimum of $3,000,000,000 of the amounts 
authorized to be appropriated for the National Highway
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System, Interstate maintenance, surface transportation, 
and congestion mitigation and air quality improvement 
programs for fiscal years 2004 through 2009 is utilized 
to expand deployment of intelligent transportation sys-
tems. 
(b) IN GENERAL.—Chapter 1 of title 23, United 
States Code, is amended by inserting after section 149 the 
following: 
‘‘§ 150. Deployment of intelligent transportation sys-
tems 
‘‘(a) IN GENERAL.—In each of fiscal years 2004 
through 2009, each State shall obligate a portion of the 
funds apportioned to the State under sections 104(b)(1), 
104(b)(2), 104(b)(3), and 104(b)(4) for such fiscal year, 
calculated under subsection (b), for projects described in 
subsection (c) that support deployment of intelligent 
transportation systems in the State. 
‘‘(b) CALCULATION OF AMOUNT.—The portion of a 
State’s apportionments to be obligated under subsection 
(a) for projects described in subsection (c) in a fiscal year 
shall be determined by multiplying $500,000,000 by the 
ratio that— 
‘‘(1) the aggregate of amounts apportioned to 
the State for such fiscal year under sections
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104(b)(1), 104(b)(2), 104(b)(3), and 104(b)(4); 
bears to 
‘‘(2) the aggregate of amounts apportioned to 
all States for such fiscal year under such sections. 
‘‘(c) INTELLIGENT TRANSPORTATION SYSTEMS DE-
PLOYMENT PROJECTS.—Projects for which funds must be 
obligated under this section include the following: 
‘‘(1) PERFORMANCE.—Establishment and im-
plementation of operations systems and services that 
improve performance in the areas of traffic oper-
ations, emergency response to surface transportation 
incidents, surface transportation incident manage-
ment, weather event response management by State 
and local authorities, surface transportation network 
and facility management, construction and work 
zone management, and traffic flow information. 
‘‘(2) NETWORKS.—Conducting activities that 
support the creation of networks that link metropoli-
tan and rural surface transportation systems into an 
integrated data network, capable of collecting, shar-
ing, and archiving transportation system traffic con-
dition and performance information. 
‘‘(3) SAFETY.—Implementation of intelligent 
transportation system technologies that improve
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highway safety through linkages connecting the vehi-
cle, the infrastructure, and information to the driver. 
‘‘(4) OPERATION
AND
MANAGEMENT.—Provi-
sion of services necessary to ensure the efficient op-
eration and management of intelligent transpor-
tation systems infrastructure, including costs associ-
ated with communications, utilities, rent, hardware, 
software, labor, administrative costs, training, and 
technical services. 
‘‘(5) INTERAGENCY
SUPPORT.—Provision of 
support for institutional relationships between trans-
portation agencies, police, emergency medical serv-
ices, private emergency operators, freight operators, 
and shippers. 
‘‘(6) 
PLANNING.—Conducting 
cross-jurisdic-
tional planning and deployment of regional transpor-
tation systems operations and management ap-
proaches. 
‘‘(d) OBLIGATION OF AMOUNTS.— 
‘‘(1) IN GENERAL.—In complying with the re-
quirements of this section, the amounts obligated by 
a State for projects under subsection (c) that sup-
port deployment of intelligent transportation systems 
in such State under subsection (a) shall be allocated 
among the individual programs for which funds are
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apportioned under sections 104(b)(1), 104(b)(2), 
104(b)(3), and 104(b)(4). 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
as requiring a State to obligate proportional or equal 
amounts 
under 
sections 
104(b)(1), 
104(b)(2), 
104(b)(3), and 104(b)(4) for any congestion relief 
activity under this section. 
‘‘(e) LIMITATION ON STATUTORY CONSTRUCTION.— 
Nothing in this section shall be construed as altering or 
otherwise affecting the applicability of the requirements 
of this chapter (including requirements relating to the eli-
gibility of a project for assistance under the program, the 
location of the project, and the Federal-share payable on 
account of the project) to amounts apportioned to a State 
for a program under section 104(b) that are obligated by 
the State for projects under this section. 
‘‘(f) JOINT RESPONSIBILITY.—Each State, each af-
fected metropolitan planning organization, and the Sec-
retary shall jointly ensure compliance with this section.’’. 
(c) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by inserting after the item relat-
ing to section 149 the following: 
‘‘150. Deployment of intelligent transportation systems.’’.
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SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT 
SUPPORT 
DEPLOYMENT 
OF 
INTELLIGENT 
TRANSPORTATION SYSTEMS. 
(a) CATEGORICAL EXCLUSIONS.—Not later than one 
year after the date of enactment of this Act, the Secretary 
shall initiate a rulemaking process to establish, to the ex-
tent appropriate, categorical exclusions for activities that 
support the deployment of intelligent transportation infra-
structure and systems from the requirement that an envi-
ronmental assessment or an environmental impact state-
ment be prepared under section 102 of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
(42 U.S.C. 4332) in compliance with the standards for 
categorical exclusions established by that Act. 
(b) NATIONWIDE PROGRAMMATIC AGREEMENT.— 
(1) DEVELOPMENT.—The Secretary shall de-
velop a nationwide programmatic agreement gov-
erning the review of activities that support the de-
ployment of intelligent transportation infrastructure 
and systems in accordance with section 106 of the 
National Historic Preservation Act (16 U.S.C. 470f) 
and the regulations of the Advisory Council on His-
toric Preservation. 
(2) CONSULTATION.—The Secretary shall de-
velop the agreement under paragraph (1) in con-
sultation with the National Conference of State His-
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toric Preservation Officers and the Advisory Council 
on Historic Preservation established under title II of 
the National Historic Preservation Act (26 U.S.C. 
470i et seq.) and after soliciting the views of other 
interested parties. 
(c) INTELLIGENT TRANSPORTATION INFRASTRUC-
TURE AND SYSTEMS DEFINED.—In this section, the term 
‘‘intelligent transportation infrastructure and systems’’ 
means intelligent transportation infrastructure and intel-
ligent transportation systems, as such terms are defined 
in section 5607. 
SEC. 1207. STATE ASSUMPTION OF RESPONSIBILITIES FOR 
CERTAIN PROGRAMS AND PROJECTS. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘§ 168. State assumption of responsibilities for cer-
tain programs and projects 
‘‘(a) ASSUMPTION OF SECRETARY’S RESPONSIBIL-
ITIES UNDER APPLICABLE FEDERAL LAWS.— 
‘‘(1) PILOT PROGRAM.— 
‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
may establish a pilot program under which 
States may assume the responsibilities of the
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Secretary under any Federal laws subject to the 
requirements of this section. 
‘‘(B) FIRST 3 FISCAL YEARS.—In the first 
3 fiscal years following the date of enactment of 
this section, the Secretary may allow up to 5 
States to participate in the pilot program. 
‘‘(2) SCOPE
OF
PROGRAM.—Under the pilot 
program, the Secretary may assign, and a State may 
assume, any of the Secretary’s responsibilities (other 
than responsibilities relating to federally recognized 
Indian tribes) for environmental reviews, consulta-
tion, or decisionmaking or other actions required 
under any Federal law as such requirements apply 
to the following projects: 
‘‘(A) Projects funded under section 104(h). 
‘‘(B) Transportation enhancement activi-
ties under section 133, as such term is defined 
in section 101(a)(35). 
‘‘(C) 
Projects 
as 
defined 
in 
section 
101(a)(39) and section 5607 of the Transpor-
tation Equity Act: A Legacy for Users. 
‘‘(3) LIMITATIONS.— 
‘‘(A) PROCEDURAL AND SUBSTANTIVE RE-
QUIREMENTS.—A State that assumes the re-
sponsibilities of the Secretary under this section
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shall be subject to the same procedural and 
substantive requirements as would apply if the 
responsibilities were carried out by the Sec-
retary. When a State assumes responsibilities 
for carrying out a Federal law under this sec-
tion, the State assents to Federal jurisdiction 
and shall be solely responsible and solely liable 
for complying with and carrying out that law 
instead of the Secretary. 
‘‘(B) 
ASSUMPTION
OF
RESPONSIBIL-
ITIES.—Any responsibility of the Secretary not 
assumed by the State in a memorandum of un-
derstanding shall remain a responsibility of the 
Secretary. 
‘‘(C) POWERS
OF
OTHER
AGENCIES.— 
Nothing in this section preempts or limits any 
power, jurisdiction, responsibility, or authority 
of an agency, other than the Department of 
Transportation, with respect to a project. 
‘‘(b) AGREEMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall enter 
into a memorandum of understanding with a State 
participating in the pilot program setting forth the 
responsibilities to be assigned under subsection
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(a)(2) and the terms and conditions under which the 
assignment is being made. 
‘‘(2) CERTIFICATION.—Before the Secretary en-
ters into a memorandum of understanding with a 
State under paragraph (1), the State shall certify 
that the State has in effect laws (including regula-
tions) applicable to projects carried out and funded 
under this title and chapter 53 of title 49 that au-
thorize the State to carry out the responsibilities 
being assumed. 
‘‘(3) MAXIMUM DURATION.—A memorandum of 
understanding with a State under this section shall 
be established for an initial period of no more than 
3 years and may be renewed by mutual agreement 
on a periodic basis for periods of not more than 3 
years. 
‘‘(4) COMPLIANCE.— 
‘‘(A) IN GENERAL.—After entering into a 
memorandum of understanding under para-
graph (1), the Secretary shall review and deter-
mine compliance by the State with the memo-
randum of understanding. 
‘‘(B) RENEWALS.—The Secretary shall 
take into account the performance of a State 
under the pilot program when considering re-
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newal of a memorandum of understanding with 
the State under the program. 
‘‘(5) ACCEPTANCE OF FEDERAL COURTS JURIS-
DICTION.—A memorandum of understanding with a 
State under this section shall include a provision 
under which the State consents to accept the juris-
diction of the Federal courts for the compliance, dis-
charge, and enforcement of any responsibility of the 
Secretary that the State may assume under the 
memorandum. 
‘‘(6) 
TERMINATION
OF
AGREEMENTS.—A 
memorandum of understanding with a State under 
this section shall include a provision authorizing the 
Secretary to terminate the agreement if the Sec-
retary, after providing an opportunity for a hearing, 
issues a finding that the State is not in compliance 
with the terms of the agreement. 
‘‘(c) SELECTION OF STATES FOR PILOT PROGRAM.— 
‘‘(1) APPLICATION.—To be eligible to partici-
pate in the pilot program, a State shall submit to 
the Secretary an application that contains such in-
formation as the Secretary may require. At a min-
imum, an application shall include— 
‘‘(A) a description of the projects or class-
es of projects for which the State seeks to as-
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sume responsibilities under subsection (a)(2); 
and 
‘‘(B) a certification that the State has the 
capability to assume such responsibilities. 
‘‘(2) PUBLIC NOTICE.—Before entering into a 
memorandum of understanding allowing a State to 
participate in the pilot program, the Secretary 
shall— 
‘‘(A) publish notice in the Federal Register 
of the Secretary’s intent to allow the State to 
participate in the program, including a copy of 
the State’s application to the Secretary and the 
terms of the proposed agreement with the 
State; and 
‘‘(B) provide an opportunity for public 
comment. 
‘‘(3) SELECTION
CRITERIA.—The Secretary 
may approve the application of a State to assume re-
sponsibilities under the program only if— 
‘‘(A) the requirements under paragraph 
(2) have been met; and 
‘‘(B) the Secretary determines that the 
State has the capability to assume the respon-
sibilities.
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‘‘(4) OTHER FEDERAL AGENCY VIEWS.—Before 
assigning to a State a responsibility of the Secretary 
that requires the Secretary to consult with another 
Federal agency, the Secretary shall solicit the views 
of the Federal agency. 
‘‘(d) STATE DEFINED.—With respect to the rec-
reational trails program, the term ‘State’ means the State 
agency designated by the Governor of the State in accord-
ance with section 206(c)(1). 
‘‘(e) PRESERVATION OF PUBLIC INTEREST CONSID-
ERATION.—Nothing in this section shall be construed to 
limit the requirements under any applicable law providing 
for the consideration and preservation of the public inter-
est, including public participation and community values 
in transportation decisionmaking. 
‘‘(f) STATE SUBJECT TO FEDERAL LAWS.—For pur-
poses of assuming responsibilities of the Secretary under 
this section, a State agency entering into a memorandum 
of understanding under subsection (b) is deemed to be a 
Federal agency to the extent the State is carrying out the 
Secretary’s responsibilities under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.), this 
title, and any other provision of Federal law.’’.
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HR 3550 PCS 
(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter 1 of such title is amended by add-
ing at the end the following: 
‘‘168. State assumption of responsibilities for certain programs and projects.’’. 
SEC. 1208. HOV FACILITIES. 
(a) IN GENERAL.—Subchapter I of chapter 1 of title 
23, United States Code, is amended by adding at the end 
the following: 
‘‘§ 167. HOV facilities 
‘‘(a) IN GENERAL.— 
‘‘(1) AUTHORITY
OF
STATE
AGENCIES.—A 
State agency that has jurisdiction over the operation 
of a HOV facility shall establish the occupancy re-
quirements of vehicles operating on the facility. 
‘‘(2) OCCUPANCY
REQUIREMENT.—Except as 
otherwise provided by this section, no fewer than 2 
occupants per vehicle may be required for use of a 
HOV facility. 
‘‘(b) EXCEPTIONS.—Notwithstanding the occupancy 
requirements of subsection (a)(2), the following exceptions 
shall apply with respect to a State agency operating a 
HOV facility: 
‘‘(1) MOTORCYCLES AND BICYCLES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the State agency shall allow motor-
cycles and bicycles to use the HOV facility.
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HR 3550 PCS 
‘‘(B) SAFETY EXCEPTION.—A State agen-
cy may restrict use of the HOV facility by mo-
torcycles or bicycles (or both) if the agency cer-
tifies to the Secretary that such use would cre-
ate a safety hazard and the Secretary accepts 
the certification. The Secretary may accept a 
certification under this subparagraph only after 
the Secretary publishes notice of the certifi-
cation in the Federal Register and provides an 
opportunity for public comment. 
‘‘(2) PUBLIC
TRANSPORTATION
VEHICLES.— 
The State agency may allow public transportation 
vehicles to use the HOV facility if the agency— 
‘‘(A) establishes requirements for clearly 
identifying the vehicles; and 
‘‘(B) establishes procedures for enforcing 
the restrictions on the use of the facility by 
such vehicles. 
‘‘(3) HIGH OCCUPANCY TOLL VEHICLES.—The 
State agency may allow vehicles not otherwise ex-
empt pursuant to this subsection to use the HOV fa-
cility if the operators of such vehicles pay a toll 
charged by the agency for use of the facility and the 
agency—
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HR 3550 PCS 
‘‘(A) establishes a program that addresses 
how motorists can enroll and participate in the 
toll program; 
‘‘(B) develops, manages, and maintains a 
system that will automatically collect the toll; 
and 
‘‘(C) establishes policies and procedures 
to— 
‘‘(i) manage the demand to use the fa-
cility by varying the toll amount that is 
charged; 
‘‘(ii) enforce violations of use of the 
facility; and 
‘‘(iii) permit low-income individuals to 
pay reduced tolls. 
‘‘(4) LOW
EMISSION
AND
ENERGY-EFFICIENT 
VEHICLES.— 
‘‘(A) INHERENTLY
LOW-EMISSION
VEHI-
CLE.—Before September 30, 2009, the State 
agency may allow vehicles that are certified as 
inherently low-emission vehicles pursuant to 
section 88.311–93 of title 40, Code of Federal 
Regulations, and are labeled in accordance with 
section 88.312–93 of such title, to use the HOV 
facility if the agency establishes procedures for
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HR 3550 PCS 
enforcing the restrictions on the use of the fa-
cility by such vehicles. 
‘‘(B) OTHER LOW EMISSION AND ENERGY- 
EFFICIENT VEHICLES.—Before September 30, 
2009, the State agency may allow vehicles cer-
tified as low emission and energy-efficient vehi-
cles under subsection (e), and labeled in accord-
ance with subsection (e), to use the HOV facil-
ity if the agency— 
‘‘(i) establishes a program that ad-
dresses how those qualifying low emission 
and energy-efficient vehicles are selected 
and certified; 
‘‘(ii) establishes requirements for la-
beling qualifying low emission and energy- 
efficient vehicles (including procedures for 
enforcing those requirements); 
‘‘(iii) continuously monitors, evalu-
ates, and reports to the Secretary on per-
formance; and 
‘‘(iv) imposes such restrictions on the 
use on high occupancy vehicle lanes by ve-
hicles that do not satisfy established occu-
pancy requirements as are necessary to en-
sure that the performance of individual
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HR 3550 PCS 
high occupancy vehicle lanes, and the en-
tire high occupancy vehicle lane system, 
will not become seriously degraded. 
‘‘(c) REQUIREMENTS APPLICABLE TO TOLLS.— 
‘‘(1) IN
GENERAL.—Tolls may be charged 
under subsections (b)(3) and (b)(4) notwithstanding 
section 301 and, except as provided in paragraphs 
(2) and (3), subject to the requirements of section 
129. 
‘‘(2) HOV FACILITIES
ON
THE
INTERSTATE 
SYSTEM.—Notwithstanding section 129, tolls may be 
charged under subsections (b)(3) and (b)(4) on a 
HOV facility on the Interstate System. 
‘‘(3) EXCESS
TOLL
REVENUES.—If a State 
agency makes a certification under the last sentence 
of section 129(a)(3) with respect to toll revenues col-
lected under subsections (b)(3) and (b)(4), the 
State, in the use of tolls revenues under that sen-
tence, shall give priority consideration to projects for 
developing alternatives to single occupancy vehicle 
travel and projects for improving highway safety. 
‘‘(d) HOV FACILITY MANAGEMENT, OPERATION, 
MONITORING, AND ENFORCEMENT.— 
‘‘(1) IN GENERAL.—A State agency that allows 
vehicles to use a HOV facility under subsection
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(b)(3) or (b)(4) in a fiscal year shall certify to the 
Secretary that the agency will carry out the fol-
lowing responsibilities with respect to the facility in 
the fiscal year: 
‘‘(A) Establishing, managing, and sup-
porting a performance monitoring, evaluation, 
and reporting program for the facility that pro-
vides for continuous monitoring, assessment, 
and reporting on the impacts that such vehicles 
may have on the operation of the facility and 
adjacent highways. 
‘‘(B) Establishing, managing, and sup-
porting an enforcement program that ensures 
that the facility is being operated in accordance 
with the requirements of this section. 
‘‘(C) Limiting or discontinuing the use of 
the facility by such vehicles if the presence of 
such vehicles has degraded the operation of the 
facility. 
‘‘(2) DEGRADED FACILITY.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the operation of a HOV facility shall 
be considered to be degraded if vehicles oper-
ating on the facility are failing to maintain a 
minimum average operating speed 90 percent of
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the time over a consecutive 6-month period dur-
ing morning or evening weekday peak hour pe-
riods (or both). 
‘‘(B) 
MINIMUM
AVERAGE
OPERATING 
SPEED
DEFINED.—In subparagraph (A), the 
term 
‘minimum 
average 
operating 
speed’ 
means— 
‘‘(i) 45 miles per hour, in the case of 
a HOV facility with a speed limit of 50 
miles per hour or greater; and 
‘‘(ii) not more than 10 miles per hour 
below the speed limit, in the case of a 
HOV facility with a speed limit of less 
than 50 miles per hour. 
‘‘(e) CERTIFICATION OF LOW EMISSION AND EN-
ERGY-EFFICIENT VEHICLES.—Not later than 6 months 
after the date of enactment of this section, the Adminis-
trator of the Environmental Protection Agency shall issue 
a final rule establishing requirements for certification of 
vehicles as low emission and energy-efficient vehicles for 
purposes of this section and requirements for the labeling 
of such vehicles. 
‘‘(f) DEFINITIONS.—In this section, the following 
definitions apply:
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‘‘(1) ALTERNATIVE FUEL VEHICLE.—The term 
‘alternative fuel vehicle’ means a vehicle that oper-
ates on— 
‘‘(A) methanol, denatured ethanol, or other 
alcohols; 
‘‘(B) a mixture containing at least 85 per-
cent of methanol, denatured ethanol, and other 
alcohols by volume with gasoline or other fuels; 
‘‘(C) natural gas; 
‘‘(D) liquefied petroleum gas; 
‘‘(E) hydrogen; 
‘‘(F) coal derived liquid fuels; 
‘‘(G) fuels (except alcohol) derived from bi-
ological materials; 
‘‘(H) electricity (including electricity from 
solar energy); or 
‘‘(I) any other fuel that the Secretary pre-
scribes by regulation that is not substantially 
petroleum and that would yield substantial en-
ergy security and environmental benefits. 
‘‘(2) HOV FACILITY.—The term ‘HOV facility’ 
means a high occupancy vehicle facility. 
‘‘(3) LOW EMISSION AND ENERGY EFFICIENT 
VEHICLE.—The term ‘low emission and energy-effi-
cient vehicle’ means a vehicle that—
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‘‘(A) has been certified by the Adminis-
trator of the Environmental Protection Agency 
as meeting the Tier II emission level established 
in regulations prescribed by the Administrator 
under section 202(i) of the Clean Air Act (42 
U.S.C. 7521(i)) for that make and model year 
vehicle; and 
‘‘(B)(i) has been certified by the Adminis-
trator to have a 45-mile-per-gallon or greater 
fuel economy highway rating; or 
‘‘(ii) is an alternative fuel vehicle. 
‘‘(4) PUBLIC TRANSPORTATION VEHICLE.—The 
term ‘public transportation vehicle’ means a vehicle 
that provides public transportation (as defined in 
section 5302(a) of title 49). 
‘‘(5) STATE AGENCY.—The term ‘State agency’, 
as used with respect to a HOV facility, means an 
agency of a State or local government having juris-
diction over the operation of the facility and includes 
a State transportation department.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) PROGRAM EFFICIENCIES.—Section 102 of 
title 23, United States Code, is amended by striking 
subsection (a) and redesignating subsections (b) and 
(c) as subsections (a) and (b), respectively.
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(2) CHAPTER ANALYSIS.—The analysis for sub-
chapter I of chapter 1 of such title is amended by 
adding at the end the following: 
‘‘167. HOV facilities.’’. 
(c) TECHNICAL AMENDMENT.—Section 102(c) of 
title 23, United States Code, is amended by striking ‘‘10 
years’’ and all that follows through ‘‘after’’ and inserting 
‘‘10 years (or such longer period as the State requests and 
the Secretary determines to be reasonable) after’’. 
SEC. 1209. REPEAL. 
Section 1012(b) of the Intermodal Surface Transpor-
tation Efficiency Act of 1991 (23 U.S.C. 149 note; 105 
Stat. 1938) is repealed. 
Subtitle C—Mobility and Efficiency 
SEC. 1301. NATIONAL CORRIDOR INFRASTRUCTURE IM-
PROVEMENT PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish and 
implement a program to make allocations to States for 
highway construction projects in corridors of national sig-
nificance to promote economic growth and international 
or interregional trade pursuant to the selection factors 
provided in this section. A State must submit an applica-
tion to the Secretary in order to receive an allocation 
under this section. 
(b) SELECTION PROCESS.—
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(1) PRIORITY.—In the selection process under 
this section, the Secretary shall give priority to 
projects in corridors that are a part of, or will be 
designated as part of, the Dwight D. Eisenhower 
National System of Interstate and Defense High-
ways after completion of the work described in the 
application received by the Secretary and to any 
project that will be completed within 5 years of the 
date of the allocation of funds for the project. 
(2) SELECTION
FACTORS.—In making alloca-
tions under this section, the Secretary shall consider 
the following factors: 
(A) The extent to which the corridor pro-
vides a link between 2 existing segments of the 
Interstate System. 
(B) The extent to which the project will fa-
cilitate major multistate or regional mobility 
and economic growth and development in areas 
underserved by existing highway infrastructure. 
(C) The extent to which commercial vehicle 
traffic in the corridor— 
(i) has increased since the date of en-
actment of the North American Free 
Trade Agreement Implementation Act (16 
U.S.C. 4401 et seq.); and
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(ii) is projected to increase in the fu-
ture. 
(D) The extent to which international 
truck-borne commodities move through the cor-
ridor. 
(E) The extent to which the project will 
make improvements to an existing segment of 
the Interstate System that will result in a de-
crease in congestion. 
(F) The reduction in commercial and other 
travel time through a major freight corridor ex-
pected as a result of the project. 
(G) The value of the cargo carried by com-
mercial vehicle traffic in the corridor and the 
economic costs arising from congestion in the 
corridor. 
(H) The extent of leveraging of Federal 
funds provided to carry out this section, includ-
ing— 
(i) use of innovative financing; 
(ii) combination with funding provided 
under other sections of this Act and title 
23, United States Code; and 
(iii) combination with other sources of 
Federal, State, local, or private funding.
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(c) PERIOD OF AVAILABILITY.—Funds allocated for 
a project to a State under this section shall remain avail-
able for obligation in that State until 6 months from the 
day on which they are allocated. Sums not obligated within 
6 months of the day on which they are allocated shall be 
available to the Secretary to be allocated for other projects 
eligible under this section. 
(d) FEDERAL SHARE.—The Federal share of the cost 
of a project under this section shall be determined in ac-
cordance with section 120(b) of title 23, United States 
Code. 
(e) APPLICABILITY OF TITLE 23.—Except as pro-
vided in subsections (c) and (d), funds made available by 
section 1101(a)(10) of this Act to carry out this section 
shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 
23, United States Code. 
(f) STATE DEFINED.—In this section, the term 
‘‘State’’ has the meaning such term has under section 101 
of title 23, United States Code. 
SEC. 1302. COORDINATED BORDER INFRASTRUCTURE PRO-
GRAM. 
(a) GENERAL AUTHORITY.—The Secretary shall im-
plement a coordinated border infrastructure program 
under which the Secretary shall distribute funds to border
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States to improve the safe movement of motor vehicles at 
or across the border between the United States and Can-
ada and the border between the United States and Mexico. 
(b) ELIGIBLE USES.—A State may use funds appor-
tioned under this section only for— 
(1) improvements in a border region to existing 
transportation and supporting infrastructure that fa-
cilitate cross-border motor vehicle and cargo move-
ments; 
(2) construction of highways and related safety 
and safety enforcement facilities in a border region 
that facilitate motor vehicle and cargo movements 
related to international trade; 
(3) operational improvements in a border re-
gion, including improvements relating to electronic 
data interchange and use of telecommunications, to 
expedite cross border motor vehicle and cargo move-
ment; 
(4) modifications to regulatory procedures to 
expedite safe and efficient cross border motor vehicle 
and cargo movements; and 
(5) international coordination of transportation 
planning, programming, and border operation with 
Canada and Mexico relating to expediting cross bor-
der motor vehicle and cargo movements.
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(c) APPORTIONMENT OF FUNDS.—On October 1 of 
each fiscal year, the Secretary shall apportion among bor-
der States sums authorized to be appropriated to carry 
out this section for such fiscal year as follows: 
(1) 20 percent in the ratio that— 
(A) the total number of incoming commer-
cial trucks that pass through the land border 
ports of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of incoming commer-
cial trucks that pass through such ports of 
entry within the boundaries of all the border 
States, as determined by the Secretary. 
(2) 30 percent in the ratio that— 
(A) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through land border ports of entry within the 
boundaries of a border State, as determined by 
the Secretary; bears to 
(B) the total number of incoming personal 
motor vehicles and incoming buses that pass 
through such ports of entry within the bound-
aries of all the border States, as determined by 
the Secretary. 
(3) 25 percent in the ratio that—
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(A) the total weight of incoming cargo by 
commercial trucks that pass through land bor-
der ports of entry within the boundaries of a 
border State, as determined by the Secretary; 
bears to 
(B) the total weight of incoming cargo by 
commercial trucks that pass through such ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(4) 25 percent of the ratio that— 
(A) the total number of land border ports 
of entry within the boundaries of a border 
State, as determined by the Secretary; bears to 
(B) the total number of land border ports 
of entry within the boundaries of all the border 
States, as determined by the Secretary. 
(d) APPLICABILITY
OF TITLE 23.—Funds made 
available to carry out this section shall be available for 
obligation in the same manner as if such funds were ap-
portioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable and shall 
remain available until expended and the Federal share of 
the cost of a project under this section shall be 80 percent. 
(e) DEFINITIONS.—In this section, the following defi-
nitions apply:
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(1) BORDER REGION.—The term ‘‘border re-
gion’’ means any portion of a border State within 20 
miles of an international land border with Canada or 
Mexico. 
(2) BORDER STATE.—The term ‘‘border State’’ 
means any State that has an international land bor-
der with Canada or Mexico. 
(3) COMMERCIAL TRUCK.—The term ‘‘commer-
cial truck’’ means a commercial motor vehicle as de-
fined in section 31301(4) (other than subparagraph 
(B)) of title 49, United States Code. 
(4) MOTOR VEHICLE.—The term ‘‘motor vehi-
cle’’ has the meaning such term has under section 
101(a) of title 23, United States Code. 
(5) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of such title 23. 
SEC. 1303. FREIGHT INTERMODAL CONNECTORS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight intermodal connector program to 
improve productivity and improve the efficiency of 
the transportation of freight, while mitigating con-
gestion in the area of freight intermodal connectors. 
(2) PURPOSES.—The purposes of the program 
shall be—
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(A) to facilitate and support intermodal 
freight transportation initiatives at the State 
and local levels in order to improve freight 
intermodal connectors and mitigate the impact 
of congestion in the area of such connectors; 
and 
(B) to provide capital funding to address 
infrastructure and freight operational needs at 
freight intermodal connectors. 
(b) STATE RESPONSIBILITIES.—Under the program, 
each State shall ensure that intermodal freight transpor-
tation and trade facilitation and are adequately addressed 
integrated into the project development process, including 
transportation planning, through final design and con-
struction of freight related transportation projects. 
(c) ELIGIBLE PROJECTS.— 
(1) IN GENERAL.—Projects eligible for funding 
under this section may include the construction of 
and improvements to publicly owned freight inter-
modal connectors, the provision of access to such 
connectors, and operational improvements for such 
connectors (including capital investment for intel-
ligent transportation systems); except that a project 
located within the boundaries of an intermodal 
freight facility shall only include highway infrastruc-
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ture modifications necessary to facilitate direct inter-
modal access between the connector and the facility. 
(2) SPECIAL RULE.—If a State that does not 
have any freight intermodal connectors within its 
boundaries or has only freight intermodal connectors 
within its boundaries that are in good condition and 
provide an adequate level of service, projects within 
the boundaries of the State that are eligible for as-
sistance under section 103(b)(6) of title 23, United 
States Code, relating to the National Highway Sys-
tem, shall be eligible for funding under this section. 
(d) PRIORITY.—Under the program, a State shall 
give priority to projects on freight intermodal connectors 
to the National Highway System as identified according 
to the criteria set forth in the report of the Department 
of Transportation to Congress entitled ‘‘Pulling Together: 
The NHS and its Connections to Major Intermodal Termi-
nals’’. 
(e) APPORTIONMENT.—On October 1 of each fiscal 
year, the Secretary shall apportion among the States sums 
made available to carry out this section for such fiscal year 
as follows: 
(1) 33.3 percent in the ratio that— 
(A) the number of freight intermodal con-
nectors identified in the most recent Intermodal
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Freight Connectors study of the Federal High-
way Administration within the boundaries of a 
State; bears to 
(B) the total number of such connectors 
within the boundaries of all the States. 
(2) 33.3 percent in the ratio that— 
(A) the total of each State’s annual con-
tributions to the Highway Trust Fund (other 
than the Mass Transit Account) attributable to 
commercial motor vehicles; bears to 
(B) the total of such annual contributions 
by all States. 
(3) 33.4 percent in the same ratios as funds are 
apportioned for the National Highway System under 
clauses (i), (ii), (iii), and (iv) of section 104(b)(1)(A) 
of title 23, United States Code. 
(f) APPLICABILITY OF TITLE 23.—Funds made avail-
able to carry out this section shall be available for obliga-
tion in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except 
that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost 
of a project under this section shall be 80 percent. 
(g) UPDATE REPORT.—Not later than August 1, 
2005, the Secretary shall publish an update to the report
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entitled ‘‘Pulling Together: the National Highway System 
and its Connections to Major Intermodal Terminals’’. 
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) FREIGHT INTERMODAL CONNECTORS.—The 
term ‘‘freight intermodal connector’’ means the 
roadway that connects to an intermodal freight facil-
ity that carries or will carry intermodal traffic. 
(2) INTERMODAL
FREIGHT
FACILITY.—The 
term ‘‘intermodal freight facility’’ means a port, air-
port, truck-rail terminal, and pipeline-truck ter-
minal. 
(3) STATE.—The term ‘‘State’’ has the mean-
ing such term has in section 101(a) of title 23, 
United States Code. 
SEC. 1304. PROJECTS OF NATIONAL AND REGIONAL SIG-
NIFICANCE. 
(a) FINDINGS.—Congress finds the following: 
(1) Under current law, surface transportation 
programs rely primarily on formula capital appor-
tionments to States. 
(2) Despite the significant increase for surface 
transportation program funding in the Transpor-
tation Equity Act of the 21st Century, current levels 
of investment are insufficient to fund critical high-
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cost transportation infrastructure facilities that ad-
dress critical national economic and transportation 
needs. 
(3) Critical high-cost transportation infrastruc-
ture facilities often include multiple levels of govern-
ment, agencies, modes of transportation, and trans-
portation goals and planning processes that are not 
easily addressed or funded within existing surface 
transportation program categories. 
(4) Projects of national and regional signifi-
cance have national and regional benefits, including 
improving economic productivity by facilitating inter-
national trade, relieving congestion, and improving 
transportation safety by facilitating passenger and 
freight movement. 
(5) The benefits of such projects described in 
paragraph (4) accrue to local areas, States, and the 
Nation as a result of the effect such projects have 
on the national transportation system. 
(6) A program dedicated to constructing 
projects of national and regional significance is nec-
essary to improve the safe, secure, and efficient 
movement of people and goods throughout the 
United States and improve the health and welfare of 
the national economy.
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(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish a program to provide grants to qualified 
entities for projects of national and regional significance. 
(c) DEFINITIONS.— 
(1) ELIGIBLE PROJECT COSTS.—The term ‘‘eli-
gible project costs’’ means the costs of— 
(A) development phase activities, including 
planning, feasibility analysis, revenue fore-
casting, environmental review, preliminary engi-
neering 
and 
design 
work, 
and 
other 
preconstruction activities; and 
(B) construction, reconstruction, rehabili-
tation, and acquisition of real property (includ-
ing land related to the project and improve-
ments to land), environmental mitigation, con-
struction contingencies, acquisition of equip-
ment, and operational improvements. 
(2) ELIGIBLE
PROJECT.—The term ‘‘eligible 
project’’ means any surface transportation project 
eligible for Federal assistance under title 23, United 
States Code, including freight railroad projects and 
activities eligible under such title. 
(3) QUALIFIED ENTITY.—The term ‘‘qualified 
entity’’ means a State as defined in section 101(a) 
of title 23, United States Code.
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(d) ELIGIBILITY.—To be eligible for assistance under 
this section, a project shall have eligible project costs that 
are reasonably anticipated to equal or exceed the lesser 
of— 
(1) $500,000,000; or 
(2) 75 percent of the amount of Federal high-
way assistance funds apportioned for the most re-
cently completed fiscal year to the State in which 
the project is located. 
(e) APPLICATIONS.—Each qualified entity seeking to 
receive a grant under this section for an eligible project 
shall submit to the Secretary an application in such form 
and in accordance with such requirements as the Secretary 
shall establish. 
(f) COMPETITIVE GRANT SELECTION AND CRITERIA 
FOR GRANTS.— 
(1) IN GENERAL.—The Secretary shall— 
(A) establish criteria for selecting among 
projects that meet the eligibility criteria speci-
fied in subsection (d); 
(B) conduct a national solicitation for ap-
plications; and 
(C) award grants on a competitive basis.
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(2) CRITERIA
FOR
GRANTS.—The Secretary 
may approve a grant under this section for a project 
only if the Secretary determines that the project— 
(A) is based on the results of preliminary 
engineering; 
(B) is justified based on the project’s abil-
ity— 
(i) to generate national economic ben-
efits, including creating jobs, expanding 
business opportunities, and impacting the 
gross domestic product; 
(ii) to reduce congestion, including 
impacts in the State, region, and Nation; 
(iii) to improve transportation safety, 
including reducing transportation acci-
dents, injuries, and fatalities; 
(iv) to otherwise enhance the national 
transportation system; and 
(v) to garner support for non-Federal 
financial commitments and provide evi-
dence of stable and dependable financing 
sources to construct, maintain, and operate 
the infrastructure facility; and 
(C) is supported by an acceptable degree of 
non-Federal financial commitments, including
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evidence of stable and dependable financing 
sources to construct, maintain, and operate the 
infrastructure facility. 
(3) SELECTION CONSIDERATIONS.—In selecting 
a project under this section, the Secretary shall con-
sider the extent to which the project— 
(A) leverages Federal investment by en-
couraging non-Federal contributions to the 
project, including contributions from public-pri-
vate partnerships; 
(B) uses new technologies, including intel-
ligent transportation systems, that enhance the 
efficiency of the project. 
(C) helps maintain or protect the environ-
ment. 
(4) PRELIMINARY
ENGINEERING.—In evalu-
ating a project under paragraph (2)(A), the Sec-
retary shall analyze and consider the results of pre-
liminary engineering for the project. 
(5) NON-FEDERAL FINANCIAL COMMITMENT.— 
(A) EVALUATION OF PROJECT.—In evalu-
ating a project under paragraph (2)(C), the 
Secretary shall require that— 
(i) the proposed project plan provides 
for the availability of contingency amounts
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that the Secretary determines to be reason-
able to cover unanticipated cost increases; 
and 
(ii) each proposed non-Federal source 
of capital and operating financing is stable, 
reliable, and available within the proposed 
project timetable. 
(B) CONSIDERATIONS.—In assessing the 
stability, reliability, and availability of proposed 
sources of non-Federal financing under sub-
paragraph (A), the Secretary shall consider— 
(i) existing financial commitments; 
(ii) the degree to which financing 
sources are dedicated to the purposes pro-
posed; 
(iii) any debt obligation that exists or 
is proposed by the recipient for the pro-
posed project; and 
(iv) the extent to which the project 
has a non-Federal financial commitment 
that exceeds the required non-Federal 
share of the cost of the project. 
(6) REGULATIONS.—Not later than 120 days 
after the date of enactment of this Act, the Sec-
retary shall issue regulations on the manner in
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which the Secretary will evaluate and rate the 
projects based on the results of preliminary engi-
neering, project justification, and the degree of non- 
Federal financial commitment, as required under 
this subsection. 
(7) PROJECT
EVALUATION
AND
RATING.—A 
proposed project may advance from preliminary en-
gineering to final design and construction only if the 
Secretary finds that the project meets the require-
ments of this subsection and there is a reasonable 
likelihood that the project will continue to meet such 
requirements. In making such findings, the Sec-
retary shall evaluate and rate the project as ‘‘highly 
recommended’’, 
‘‘recommended’’, 
or 
‘‘not 
rec-
ommended’’ based on the results of preliminary engi-
neering, the project justification criteria, and the de-
gree of non-Federal financial commitment, as re-
quired under this subsection. In rating the projects, 
the Secretary shall provide, in addition to the overall 
project rating, individual ratings for each of the cri-
teria established under the regulations issued under 
paragraph (6). 
(g) LETTERS
OF INTENT
AND FULL FUNDING 
GRANT AGREEMENTS.— 
(1) LETTER OF INTENT.—
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(A) IN
GENERAL.—The Secretary may 
issue a letter of intent to an applicant announc-
ing an intention to obligate, for a project under 
this section, an amount from future available 
budget authority specified in law that is not 
more than the amount stipulated as the finan-
cial participation of the Secretary in the 
project. 
(B) NOTIFICATION.—At least 60 days be-
fore issuing a letter under subparagraph (A) or 
entering into a full funding grant agreement, 
the Secretary shall notify in writing the Com-
mittee on Transportation and Infrastructure of 
the House of Representatives and the Com-
mittee on Environment and Public Works of the 
Senate of the proposed letter or agreement. The 
Secretary shall include with the notification a 
copy of the proposed letter or agreement as well 
as the evaluations and ratings for the project. 
(C) NOT AN OBLIGATION.—The issuance 
of a letter is deemed not to be an obligation 
under sections 1108(c) and (d), 1501, and 
1502(a) of title 31, United States Code, or an 
administrative commitment.
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(D) OBLIGATION
OR
COMMITMENT.—An 
obligation or administrative commitment may 
be made only when contract authority is allo-
cated to a project. 
(2) FULL FUNDING GRANT AGREEMENT.— 
(A) IN
GENERAL.—A project financed 
under this subsection shall be carried out 
through a full funding grant agreement. The 
Secretary shall enter into a full funding grant 
agreement based on the evaluations and ratings 
required under subsection (f)(7). 
(B) TERMS.—If the Secretary makes a full 
funding grant agreement with an applicant, the 
agreement shall— 
(i) establish the terms of participation 
by the United States Government in a 
project under this section; 
(ii) establish the maximum amount of 
Government financial assistance for the 
project; 
(iii) cover the period of time for com-
pleting the project, including a period ex-
tending beyond the period of an authoriza-
tion; and
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(iv) make timely and efficient man-
agement of the project easier according to 
the laws of the United States. 
(C) AGREEMENT.—An agreement under 
this paragraph obligates an amount of available 
budget authority specified in law and may in-
clude a commitment, contingent on amounts to 
be specified in law in advance for commitments 
under this paragraph, to obligate an additional 
amount from future available budget authority 
specified in law. The agreement shall state that 
the contingent commitment is not an obligation 
of the Government. Interest and other financing 
costs of efficiently carrying out a part of the 
project within a reasonable time are a cost of 
carrying out the project under a full funding 
grant agreement, except that eligible costs may 
not be more than the cost of the most favorable 
financing terms reasonably available for the 
project at the time of borrowing. The applicant 
shall certify, in a way satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financ-
ing terms.
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(3) AMOUNTS.—The total estimated amount of 
future obligations of the Government and contingent 
commitments to incur obligations covered by all out-
standing letters of intent and full funding grant 
agreements may be not more than the greater of the 
amount authorized to carry out this section or an 
amount equivalent to the last 2 fiscal years of fund-
ing authorized to carry out this section less an 
amount the Secretary reasonably estimates is nec-
essary for grants under this section not covered by 
a letter. The total amount covered by new letters 
and contingent commitments included in full funding 
grant agreements may be not more than a limitation 
specified in law. 
(h) GRANT REQUIREMENTS.— 
(1) IN GENERAL.—A grant for a project under 
this section shall be subject to all of the require-
ments of title 23, United States Code, and chapter 
52 of title 49, United States Code. 
(2) OTHER TERMS AND CONDITIONS.—The Sec-
retary shall require that all grants under this section 
be subject to all terms, conditions, and requirements 
that the Secretary decides are necessary or appro-
priate for purposes of this section, including require-
ments for the disposition of net increases in value of
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real property resulting from the project assisted 
under this section. 
(i) GOVERNMENT’S SHARE
OF PROJECT COST.— 
Based on engineering studies, studies of economic feasi-
bility, and information on the expected use of equipment 
or facilities, the Secretary shall estimate the cost of a 
project receiving assistance under this section. A grant for 
the project is for 80 percent of the project cost, unless 
the grant recipient requests a lower grant percentage. A 
refund or reduction of the remainder may be made only 
if a refund of a proportional amount of the grant of the 
Government is made at the same time. 
(j) FISCAL CAPACITY CONSIDERATIONS.—If the Sec-
retary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (i) the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
(k) REPORTS.— 
(1) ANNUAL REPORT.—Not later than the first 
Monday in February of each year, the Secretary 
shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Environment and Public 
Works of the Senate a report that includes a pro-