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policies necessary for expedited and streamlined 
procurements. 
(4) REPORT
AND
RECOMMENDATIONS.—Not 
later than March 31, 2006, 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). 
(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 2005 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,
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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 
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
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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. 
(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-
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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 
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
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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 
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.
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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-
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;
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(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; 
(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-
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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 $2,500,000,000 of the amounts 
authorized to be appropriated for the National Highway 
System, Interstate maintenance, surface transportation, 
and congestion mitigation and air quality improvement 
programs for fiscal years 2005 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:
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‘§ 150. Deployment of intelligent transportation sys-
tems 
‘(a) IN GENERAL.—In each of fiscal years 2005 
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 
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 imple-
mentation of operations systems and services that 
improve performance in the areas of traffic oper-
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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 
highway safety through linkages connecting the vehi-
cle, the infrastructure, and information to the driver. 
‘(4) OPERATION AND MANAGEMENT.—Provision 
of services necessary to ensure the efficient oper-
ation and management of intelligent transportation 
systems infrastructure, including costs associated 
with communications, utilities, rent, hardware, soft-
ware, labor, administrative costs, training, and tech-
nical services. 
‘(5) INTERAGENCY
SUPPORT.—Provision of 
support for institutional relationships between trans-
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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 
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
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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.’.
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.)
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(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-
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.
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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: 
‘§ 167. State assumption of responsibilities for certain 
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 
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 pro-
gram, 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
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under any Federal law as such requirements apply 
to the following projects: 
‘(A) Projects funded under section 104(h). 
‘(B) Transportation enhancement activities 
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. 
‘(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 
(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.
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‘(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-
newal of a memorandum of understanding with 
the State under the program. 
‘(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—
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‘(A) a description of the projects or classes 
of projects for which the State seeks to assume 
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 com-
ment. 
‘(3) SELECTION CRITERIA.—The Secretary may 
approve the application of a State to assume respon-
sibilities 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 
accordance 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.’. 
(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter 1 of such title is amended by add-
ing at the end the following:
‘167. 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: 
‘§ 168. HOV facilities 
‘(a) IN GENERAL.—