229
ered by a letter. The total amount covered by 
new letters and contingent commitments in-
cluded in full funding grant agreements and 
early systems work agreements may be not 
more than a limitation specified in law. 
‘‘(B) INCLUSION
OF
CERTAIN
COMMIT-
MENTS.—Future obligations of the Government 
and contingent commitments made against the 
contingent commitment authority under section 
3032(g)(2) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (106 Stat. 
2125) for the San Francisco BART to the Air-
port project for fiscal years 2002, 2003, 2004, 
2005, and 2006 shall be charged against sec-
tion 3032(g)(2) of that Act. 
‘‘(C) APPROPRIATION REQUIRED.—An ob-
ligation may be made under this subsection only 
when amounts are appropriated for the obliga-
tion. 
‘‘(5) NOTIFICATION OF CONGRESS.—At least 60 
days before issuing a letter of intent or entering into 
a full funding grant agreement under this sub-
section, the Secretary shall notify, in writing, the 
Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on
230
Banking, Housing, and Urban Affairs of the Senate 
of the proposed letter or agreement. The Secretary 
shall include with the notification a copy of the pro-
posed letter or agreement as well as the evaluations 
and ratings for the project. 
‘‘(g) GOVERNMENT’S
SHARE
OF
NET
PROJECT 
COST.—
‘‘(1) FEDERAL SHARE.—Based on engineering 
studies, studies of economic feasibility, and informa-
tion on the expected use of equipment or facilities, 
the Secretary shall estimate the net project cost. A 
grant for the project shall be for 80 percent of the 
net capital project cost, unless the grant recipient 
requests a lower grant percentage. 
‘‘(2) REMAINDER OF NET PROJECT COST.—The 
remainder of net project costs shall be provided from 
an undistributed cash surplus, a replacement or de-
preciation cash fund or reserve, or new capital. 
‘‘(3) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this section, including paragraph 
(1) and subsections (c)(3)(D)(iv) and (c)(4), shall be 
construed as authorizing the Secretary to require a 
non-Federal financial commitment for a project that 
is more than 20 percent of the net capital project 
cost.
231
‘‘(4) SPECIAL
RULE
FOR
ROLLING
STOCK 
COSTS.—In addition to amounts allowed pursuant to 
paragraph (1), a planned extension to a fixed guide-
way system may include the cost of rolling stock pre-
viously purchased if the applicant satisfies the Sec-
retary that only amounts other than amounts of the 
Government were used and that the purchase was 
made for use on the extension. A refund or reduc-
tion of the remainder may be made only if a refund 
of a proportional amount of the grant of the Govern-
ment is made at the same time. 
‘‘(5) LIMITATION
ON
APPLICABILITY.—This 
subsection does not apply to projects for which the 
Secretary has entered into a full funding grant 
agreement before the date of enactment of the Fed-
eral Public Transportation Act of 2004. 
‘‘(h) FISCAL CAPACITY CONSIDERATIONS.—If the 
Secretary gives priority consideration to financing projects 
that include more than the non-Government share re-
quired under subsection (g), the Secretary shall give equal 
consideration to differences in the fiscal capacity of State 
and local governments. 
‘‘(i) REPORTS ON NEW STARTS.—
‘‘(1) ANNUAL
DOT
REPORT.—Not later than 
the first Monday in February of each year, the Sec-
232
retary shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report that includes—
‘‘(A) a proposal of allocations of amounts 
to be available to finance grants for new fixed 
guideway capital projects among applicants for 
these amounts; 
‘‘(B) evaluations and ratings, as required 
under subsection (c), for each such project that 
is authorized by the Federal Public Transpor-
tation Act of 2004; and 
‘‘(C) recommendations of such projects for 
funding based on the evaluations and ratings 
and on existing commitments and anticipated 
funding levels for the next 3 fiscal years and for 
the next 10 fiscal years based on information 
currently available to the Secretary. 
‘‘(2) ANNUAL GAO REVIEW.—The Comptroller 
General shall—
‘‘(A) conduct an annual review of—
‘‘(i) the processes and procedures for 
evaluating, rating, and recommending new 
fixed guideway capital projects; and
233
‘‘(ii) the Secretary’s implementation 
of such processes and procedures; and 
‘‘(B) report to Congress on the results of 
such review by May 31 of each year. 
‘‘(j) UNDERTAKING PROJECTS IN ADVANCE.—
‘‘(1) IN GENERAL.—The Secretary may pay the 
Government’s share of the net capital project cost to 
a State or local governmental authority that carries 
out any part of a project described in this section 
without the aid of amounts of the Government and 
according to all applicable procedures and require-
ments if—
‘‘(A) the State or local governmental au-
thority applies for the payment; 
‘‘(B) the Secretary approves the payment; 
and 
‘‘(C) before carrying out the part of the 
project, the Secretary approves the plans and 
specifications for the part in the same way as 
other projects under this section. 
‘‘(2) FINANCING COSTS.—
‘‘(A) IN GENERAL.—The cost of carrying 
out part of a project includes the amount of in-
terest earned and payable on bonds issued by 
the State or local governmental authority to the
234
extent proceeds of the bonds are expended in 
carrying out the part. 
‘‘(B) LIMITATION ON AMOUNT OF INTER-
EST.—The amount of interest under this para-
graph may not be more than the most favorable 
interest terms reasonably available for the 
project at the time of borrowing. 
‘‘(C) CERTIFICATION.—The applicant shall 
certify, in a manner satisfactory to the Sec-
retary, that the applicant has shown reasonable 
diligence in seeking the most favorable financial 
terms. 
‘‘(3) CAPITAL
PROJECT
COST
INDICES.—The 
Secretary shall consider changes in capital project 
cost indices when determining the estimated cost 
under paragraph (2). 
‘‘(k) BUS AND BUS FACILITY GRANTS.—In making 
grants under subsection (m)(1)(C), the Secretary shall 
consider the age of buses, bus fleets, related equipment, 
and bus-related facilities. 
‘‘(l) AVAILABILITY OF AMOUNTS.—An amount made 
available or appropriated under section 5338(b) for re-
placement, rehabilitation, and purchase of buses and re-
lated equipment and construction of bus-related facilities 
or for new fixed guideway capital projects shall remain
235
available for 3 fiscal years, including the fiscal year in 
which the amount is made available or appropriated. Any 
of such amounts that are unobligated at the end of the 
3-fiscal-year period shall be deobligated and may be used 
by the Secretary for any purpose under this section. 
‘‘(m) ALLOCATING AMOUNTS.—
‘‘(1) IN GENERAL.—After the allocation under 
section 5338(b)(2)(C) for a fiscal year and subject 
to paragraph (4), the remainder of the amounts 
made available by or appropriated under section 
5338(b) for grants under this section for such fiscal 
year shall be allocated as follows: 
‘‘(A) 40 percent for fixed guideway mod-
ernization; 
‘‘(B) 40 percent for major new fixed guide-
way capital projects; and 
‘‘(C) 20 percent to replace, rehabilitate, 
and purchase buses and related equipment and 
to construct bus-related facilities. 
‘‘(2) LIMITATION
ON
AMOUNTS.—Not more 
than 8 percent of the amounts made available in 
each fiscal year by paragraph (l)(B) shall be avail-
able for alternatives analysis and preliminary engi-
neering.
236
‘‘(3) FUNDING FOR FERRY BOAT SYSTEMS.—Of 
the amounts made available under paragraph (1)(B), 
$10,400,000 shall be available in each of fiscal years 
2004 through 2009 for new fixed guideway capital 
projects in Alaska or Hawaii that are for ferry boats 
or ferry terminal facilities or that are for approaches 
to ferry terminal facilities. 
‘‘(4) SOURCES OF FUNDING.—All amounts allo-
cated for fixed guideway modernization and all 
amounts allocated to replace, rehabilitate, and pur-
chase buses and related equipment and to construct 
bus-related facilities under paragraph (1) shall be 
derived from the Mass Transit Account of the High-
way Trust Fund. All amounts allocated for new 
fixed guideway capital projects under paragraph (1) 
shall be derived from the general fund of the Treas-
ury. 
‘‘(n) NEW FIXED GUIDEWAY CAPITAL PROJECT DE-
FINED.—In this section, the term ‘new fixed guideway 
capital project’ means a minimum operable segment of a 
capital project for a new fixed guideway system or exten-
sion to an existing fixed guideway system.’’. 
(e) CONFORMING AMENDMENTS.—
237
(1) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5309 and inserting the following:
‘‘5309. Capital investment grants.’’.
(2) SECTION 5328.—Section 5328(a) is amend-
ed—
(A) in paragraph (2) by striking ‘‘5309(e)’’ 
and inserting ‘‘5309(c)’’; and 
(B) in paragraph (4) by striking ‘‘under 
section 5309(o)(1)’’ and inserting ‘‘under sec-
tion 5309(i)(1)’’. 
SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF EL-
DERLY INDIVIDUALS AND INDIVIDUALS WITH 
DISABILITIES. 
(a) IN GENERAL.—Section 5310 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5310. Formula grants for special needs of elderly 
individuals and individuals with disabil-
ities’’; 
(2) by striking subsections (a) through (g) and 
inserting the following: 
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants to States and local governmental authorities 
under this section for public transportation capital
238
projects, and operating costs associated with public 
transportation capital projects, planned, designed, 
and carried out to meet the special needs of elderly 
individuals and individuals with disabilities. 
‘‘(2) SUBRECIPIENTS.—A State that receives a 
grant under this section may allocate the amounts of 
the grant to—
‘‘(A) a private nonprofit organization if the 
public transportation service provided under 
paragraph (1) is unavailable, insufficient, or in-
appropriate; or 
‘‘(B) a governmental authority that—
‘‘(i) is approved by the State to co-
ordinate services for elderly individuals and 
individuals with disabilities; or 
‘‘(ii) certifies that there are not any 
nonprofit organizations readily available in 
the area to provide the services described 
under paragraph (1). 
‘‘(3) 
ACQUIRING
PUBLIC
TRANSPORTATION 
SERVICES.—A public transportation capital project 
under this section may include acquisition by a re-
cipient of public transportation services as an eligi-
ble capital expense.
239
‘‘(4) ADMINISTRATIVE EXPENSES.—A State or 
local governmental authority may use not more than 
10 percent of the amounts apportioned to the State 
under this section to administer, plan, and provide 
technical assistance for a project funded under this 
section. 
‘‘(b) APPORTIONMENT AND TRANSFERS.—
‘‘(1) APPORTIONMENT
FORMULA.—The Sec-
retary shall apportion amounts made available to 
carry out this section under a formula the Secretary 
administers that considers the number of elderly in-
dividuals and individuals with disabilities in each 
State. 
‘‘(2) TRANSFERS.—Any State’s apportionment 
remaining available for obligation at the beginning 
of the 90-day period before the end of the period of 
availability of the apportionment is available to the 
State for transfer to supplement amounts appor-
tioned to the State under section 5311(c) or 
5336(a)(1), or both. Any funds transferred pursuant 
to this paragraph shall be made available only for el-
igible projects as described in this section. 
‘‘(c) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of
240
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
age shall be increased in accordance with such sec-
tion. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section
241
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(d) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to all requirements of a grant under 
section 5307. A grant to a subrecipient under this 
section shall be subject to such requirements to the 
extent the Secretary considers appropriate. 
‘‘(2) COORDINATION
WITH
NONPROFIT
PRO-
VIDERS.—A recipient that transfers funds to an ap-
portionment under section 5336(a)(1) pursuant to 
subsection (b)(2) shall certify that the project for 
which the funds are requested under this section has 
been coordinated with nonprofit providers of serv-
ices. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify 
that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public,
242
private, and nonprofit transportation and 
human services providers and participation by 
the public. 
‘‘(4) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis. 
‘‘(e) STATE PROGRAM.—
‘‘(1) IN GENERAL.—Amounts made available to 
carry out this section may be used for transportation 
projects to assist in providing transportation services 
for elderly individuals and individuals with disabil-
ities that are included in a State program of 
projects. 
‘‘(2) SUBMISSION AND APPROVAL.—A program 
shall be submitted annually to the Secretary for ap-
proval and shall contain an assurance that the pro-
gram provides for maximum feasible coordination of 
transportation services assisted under this section 
with transportation services assisted by other Gov-
ernment sources. 
‘‘(f) LEASING VEHICLES.—Vehicles acquired under 
this section may be leased to local governmental authori-
ties to improve transportation services designed to meet
243
the special needs of elderly individuals and individuals 
with disabilities.’’; and 
(3) by redesignating subsections (h) through (j) 
as subsections (g) through (i), respectively. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5310 and inserting the following:
‘‘5310. Formula grants for special needs of elderly individuals and individuals 
with disabilities.’’.
SEC. 3012. FORMULA GRANTS FOR OTHER THAN URBAN-
IZED AREAS. 
(a) DEFINITIONS.—Section 5311(a) is amended to 
read as follows: 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
State that receives a Federal transit program grant 
directly from the Government. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a Federal transit pro-
gram grant indirectly through a recipient.’’. 
(b) GENERAL
AUTHORITY.—Section 5311(b) is 
amended to read as follows: 
‘‘(b) GENERAL AUTHORITY.—
244
‘‘(1) GRANTS.—Except as provided in para-
graph (2), the Secretary may make grants to other 
than urbanized areas under this section for the fol-
lowing: 
‘‘(A) Public transportation capital projects. 
‘‘(B) Operating costs of equipment and fa-
cilities for use in public transportation. 
‘‘(C) Acquisition of public transportation 
services, including service agreements with pri-
vate providers of public transportation services. 
‘‘(2) STATE PROGRAM.—
‘‘(A) IN GENERAL.—Amounts made avail-
able to carry out this section shall be used for 
projects included in a State program for public 
transportation projects, including service agree-
ments with private providers of public transpor-
tation. 
‘‘(B) SUBMISSION.—The program shall be 
submitted annually to the Secretary for ap-
proval. 
‘‘(C) APPROVAL.—The Secretary may ap-
prove the program only if the Secretary finds 
that the program provides a fair distribution of 
amounts in the State, including Indian reserva-
tions, and the maximum feasible coordination of
245
public transportation service assisted under this 
section with transportation service assisted by 
other Federal sources. 
‘‘(3) RURAL
TRANSPORTATION
ASSISTANCE 
PROGRAM.—
‘‘(A) IN
GENERAL.—The Secretary shall 
carry out a rural transportation assistance pro-
gram in other than urbanized areas. 
‘‘(B) GRANTS AND CONTRACTS.—In car-
rying out this paragraph, the Secretary may use 
not more than 2 percent of the amount made 
available to carry out this section to make 
grants and contracts for transportation re-
search, technical assistance, training, and re-
lated support services in other than urbanized 
areas. 
‘‘(C) PROJECTS OF A NATIONAL SCOPE.—
Not more than 15 percent of the amounts avail-
able under subparagraph (B) may be used by 
the Secretary to carry out projects of a national 
scope, with the remaining balance provided to 
the States.’’. 
(c) APPORTIONMENTS.—Section 5311(c) is amended 
to read as follows: 
‘‘(c) APPORTIONMENTS.—
246
‘‘(1) IN GENERAL.—The Secretary shall appor-
tion amounts made available to carry out this sec-
tion among the States in the ratio that—
‘‘(A) the population of other than urban-
ized areas in each State, as shown by the most 
recent Government decennial census of popu-
lation; bears to 
‘‘(B) the population of all other than ur-
banized areas in the United States, as shown by 
that census. 
‘‘(2) AVAILABILITY.—The amount apportioned 
to a State under this subsection may be obligated by 
the State for 2 fiscal years after the fiscal year in 
which the amount is apportioned. An amount that is 
not obligated at the end of that period shall be re-
apportioned among the States for the next fiscal 
year.’’. 
(d) USE
FOR ADMINISTRATION, PLANNING, AND 
TECHNICAL ASSISTANCE.—Section 5311(e) is amended—
(1) in the subsection heading by inserting ‘‘, 
PLANNING,’’ after ‘‘ADMINISTRATION’’; 
(2) by striking ‘‘(1) The Secretary’’ and insert-
ing ‘‘The Secretary’’; 
(3) by striking paragraph (2); and
247
(4) by striking ‘‘recipient’’ and inserting ‘‘sub-
recipient’’. 
(e) INTERCITY
BUS
TRANSPORTATION.—Section 
5311(f) is amended—
(1) in paragraph (1) by striking ‘‘after Sep-
tember 30, 1993,’’; and 
(2) in paragraph (2) by striking ‘‘A State’’ and 
inserting ‘‘After consultation with affected intercity 
bus service providers, a State’’. 
(f) GOVERNMENT’S
SHARE
OF
COSTS.—Section 
5311(g) is amended to read as follows: 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary; except that in the case of a State de-
scribed in section 120(b)(1) of title 23, such percent-
age shall be increased in accordance with such sec-
tion. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of net 
project costs—
248
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A State carrying out a program of operating 
assistance under this section may not limit the level 
or extent of use of the Government grant for the 
payment of operating expenses.’’. 
(g) RELATIONSHIP TO OTHER LAWS.—Section 5311 
is amended—
249
(1) by striking subsection (h); and 
(2) by redesignating subsections (i) and (j) as 
subsections (h) and (i), respectively. 
(h) CORRECTION TO CHAPTER ANALYSIS.—The anal-
ysis for chapter 53 is amended by striking the item relat-
ing to section 5311 and inserting the following:
‘‘5311. Formula grants for other than urbanized areas.’’.
SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, 
AND DEPLOYMENT PROJECTS. 
(a) IN GENERAL.—Section 5312 is amended—
(1) in subsection (a)—
(A) by striking the first parenthetical 
phrase; 
(B) by striking ‘‘or contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(C) by striking ‘‘help reduce urban trans-
portation needs, improve mass transportation 
service,’’ and inserting ‘‘improve transportation 
service’’; 
(D) by striking ‘‘urban’’ each place it ap-
pears; and 
(E) 
by 
striking 
‘‘and 
demonstration 
projects’’ and inserting ‘‘, demonstration or de-
ployment projects, or evaluation of technology 
of national significance’’;
250
(2) by striking subsections (b) and (c); 
(3) by redesignating subsections (d) and (e) as 
subsections (b) and (c), respectively; 
(4) in subsection (b)(2) (as so redesignated) by 
striking ‘‘other agreements’’ and inserting ‘‘other 
transactions’’; and 
(5) in subsection (c)(2) (as so redesignated) by 
striking ‘‘public and’’ and inserting ‘‘public or’’. 
(b) CONFORMING AMENDMENTS.—
(1) 
SECTION
HEADING.—Section 
5312 
is 
amended by striking the section heading and insert-
ing the following: 
‘‘§ 5312. Research, development, demonstration, and 
deployment projects’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5312 and inserting the following:
‘‘5312. Research, development, demonstration, and deployment projects.’’.
SEC. 3014. COOPERATIVE RESEARCH PROGRAM. 
(a) IN GENERAL.—Section 5313 is amended—
(1) in subsection (a) by striking ‘‘(1) The 
amounts made available under paragraphs (1) and 
(2)(C)(ii) of section 5338(d) of this title’’ and insert-
ing ‘‘The amounts made available under paragraphs 
(1) and (2)(B)(i) of section 5338(d)’’; 
(2) by striking subsection (b);
251
(3) in subsection (a)(2) by striking ‘‘(2) The’’ 
and inserting ‘‘(b) FEDERAL ASSISTANCE.—The’’; 
and 
(4) in subsection (c) by striking ‘‘subsection (a) 
of’’. 
(b) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—Section 5313 is amended by 
striking the section heading and inserting the fol-
lowing: 
‘‘§ 5313. Cooperative research program’’. 
(2) CHAPTER
ANALYSIS.—The analysis for 
chapter 53 is amended by striking the item relating 
to section 5313 and inserting the following:
‘‘5313. Cooperative research program.’’.
SEC. 3015. NATIONAL RESEARCH AND TECHNOLOGY PRO-
GRAMS. 
(a) IN GENERAL.—Section 5314 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5314. National research and technology programs’’; 
(2) in subsection (a)(1)—
(A) by striking ‘‘subsections (d) and (h)(7) 
of section 5338 of this title’’ and inserting ‘‘sec-
tion 5338(d)’’;
252
(B) by striking ‘‘and contracts’’ and insert-
ing ‘‘, contracts, cooperative agreements, or 
other transactions’’; 
(C) by striking ‘‘5303–5306,’’; and 
(D) by striking ‘‘5317,’’; 
(3) in subsection (a)(2) by striking ‘‘Of the 
amounts’’ and all that follows through ‘‘$3,000,000 
to’’ and inserting ‘‘The Secretary shall’’; 
(4) by striking subsection (a)(4)(B); 
(5) by redesignating subsection (a)(4)(C) as 
subsection (a)(4)(B); and 
(6) in subsection (b) by striking ‘‘or contract’’ 
and all that follows through ‘‘section,’’ and inserting 
‘‘, contract, cooperative agreement, or other trans-
action under subsection (a) or section 5312,’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5314 and inserting the following:
‘‘5314. National research and technology programs.’’.
SEC. 3016. NATIONAL TRANSIT INSTITUTE. 
Section 5315 is amended—
(1) in subsection (a) by striking ‘‘public mass 
transportation’’ and inserting ‘‘public transpor-
tation’’; and 
(2) in subsection (d) by striking ‘‘mass’’ each 
place it appears.
253
SEC. 3017. JOB ACCESS AND REVERSE COMMUTE FORMULA 
GRANTS. 
(a) IN GENERAL.—Chapter 53 is amended by insert-
ing after section 5315 the following: 
‘‘§ 5316. Job access and reverse commute formula 
grants 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ACCESS TO JOBS PROJECT.—The term ‘ac-
cess to jobs project’ means a project relating to the 
development and maintenance of transportation 
services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and 
activities related to their employment, including—
‘‘(A) transportation projects to finance 
planning, capital, and operating costs of pro-
viding access to jobs under this chapter; 
‘‘(B) promoting public transportation by 
low-income workers, including the use of public 
transportation by workers with nontraditional 
work schedules; 
‘‘(C) promoting the use of transit vouchers 
for welfare recipients and eligible low-income in-
dividuals; and 
‘‘(D) promoting the use of employer-pro-
vided transportation, including the transit pass
254
benefit program under section 132 of the Inter-
nal Revenue Code of 1986. 
‘‘(2) ELIGIBLE LOW-INCOME INDIVIDUAL.—The 
term ‘eligible low-income individual’ means an indi-
vidual whose family income is at or below 150 per-
cent of the poverty line (as that term is defined in 
section 673(2) of the Community Services Block 
Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by that section) for a family of the size 
involved. 
‘‘(3) RECIPIENT.—The term ‘recipient’ means a 
designated 
recipient 
(as 
defined 
in 
section 
5307(a)(2)) or State that receives a grant under this 
section directly. 
‘‘(4) REVERSE COMMUTE PROJECT.—The term 
‘reverse commute project’ means a public transpor-
tation project designed to transport residents of ur-
banized areas and other than urbanized areas to 
suburban employment opportunities, including any 
projects to—
‘‘(A) subsidize the costs associated with 
adding reverse commute bus, train, carpool, van 
routes, or service from urbanized areas and 
other than urbanized areas to suburban work-
places;
255
‘‘(B) subsidize the purchase or lease by a 
nonprofit organization or public agency of a van 
or bus dedicated to shuttling employees from 
their residences to a suburban workplace; or 
‘‘(C) otherwise facilitate the provision of 
public transportation services to suburban em-
ployment opportunities. 
‘‘(5) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘‘(6) WELFARE RECIPIENT.—The term ‘welfare 
recipient’ means an individual who has received as-
sistance under a State or tribal program funded 
under part A of title IV of the Social Security Act 
at any time during the 3-year period before the date 
on which the applicant applies for a grant under this 
section. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants under this section to a recipient for access to 
jobs and reverse commute projects carried out by the 
recipient or a subrecipient.
256
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient 
may use not more than 10 percent of the amounts 
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for 
a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
fined in section 5307(a)(2)) for urbanized areas 
with a population of 200,000 or more in the 
ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in each 
such urbanized area; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in all 
such urbanized areas. 
‘‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in urban-
257
ized areas with a population of less than 
200,000 in each State; bears to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in urban-
ized areas with a population of less than 
200,000 in all States. 
‘‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in each State; bears 
to 
‘‘(ii) the number of eligible low-income 
individuals and welfare recipients in other 
than urbanized areas in all States. 
‘‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)—
‘‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or 
more; 
‘‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and
258
‘‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving other 
than urbanized areas. 
‘‘(3) EXCEPTIONS.—A State may use funds ap-
portioned under paragraphs (1)(B) and (1)(C)—
‘‘(A) for projects serving areas other than 
the area specified in paragraph (2)(B) or 
(2)(C), as the case may be, if the Governor of 
the State certifies that all of the objectives of 
this section are being met in the specified area; 
or 
‘‘(B) for projects anywhere in the State if 
the State has established a statewide program 
for meeting the objectives of this section. 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section. 
‘‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (c)(1)(B) or 
(c)(1)(C) shall conduct a statewide solicitation for
259
applications for grants to the recipient and sub-
recipients under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
cipient an application in the form and in accordance 
with such requirements as the recipient shall estab-
lish. 
‘‘(4) GRANT
AWARDS.—The recipient shall 
award grants under paragraphs (1) and (2) on a 
competitive basis. 
‘‘(e) TRANSFERS.—
‘‘(1) IN GENERAL.—A State may transfer any 
funds apportioned to it under subparagraph (B) or 
(C) of subsection (c)(1), or both, to an apportion-
ment under section 5311(c) or 5336, or both. 
‘‘(2) LIMITED
TO
ELIGIBLE
PROJECTS.—Any 
apportionment transferred under this subsection 
shall be made available only for eligible job access 
and reverse commute projects as described in this 
section. 
‘‘(3) CONSULTATION.—A State may make a 
transfer of an amount under this subsection only 
after consulting with responsible local officials and 
publicly owned operators of public transportation in
260
each area for which the amount originally was 
awarded under this section. 
‘‘(f) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—A grant under this section 
shall be subject to the requirements of section 5307. 
‘‘(2) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
to the Secretary that allocations of the grant to sub-
recipients are distributed on a fair and equitable 
basis. 
‘‘(g) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments 
and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A State 
that transfers funds to an apportionment under sec-
tion 5336 pursuant to subsection (e) shall certify to 
the Secretary that any project for which the funds 
are requested under this section has been coordi-
nated with nonprofit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify to 
the Secretary that—
261
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public, 
private, and nonprofit transportation and 
human services providers and participation by 
the public. 
‘‘(h) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section may not exceed 80 percent 
of the net capital costs of the project, as determined 
by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and
262
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation. 
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the 
level or extent of use of the Government grant for 
the payment of operating expenses. 
‘‘(i) PROGRAM EVALUATION.—
‘‘(1) COMPTROLLER
GENERAL.—Beginning 1 
year after the date of enactment of the Federal Pub-
lic Transportation Act of 2004, and every 2 years 
thereafter, the Comptroller General shall—
‘‘(A) conduct a study to evaluate the grant 
program authorized by this section; and
263
‘‘(B) transmit to the Committee on Trans-
portation and Infrastructure of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
a report describing the results of the study 
under subparagraph (A). 
‘‘(2) DEPARTMENT OF TRANSPORTATION.—Not 
later than 3 years after the date of enactment of 
Federal Public Transportation Act of 2004, the Sec-
retary shall—
‘‘(A) conduct a study to evaluate the effec-
tiveness of the grant program authorized by 
this section and the effectiveness of recipients 
making grants to subrecipients under this sec-
tion; and 
‘‘(B) transmit to the committees referred 
to in paragraph (1)(B) a report describing the 
results of the study under subparagraph (A).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5315 the following:
‘‘5316. Job access and reverse commute formula grants.’’.
(c) REPEAL.—Section 3037 of the Transportation 
Equity Act for the 21st Century (49 U.S.C. 5309 note; 
112 Stat. 387) is repealed.
264
SEC. 3018. NEW FREEDOM PROGRAM. 
(a) IN GENERAL.—Chapter 53 is further amended by 
inserting after section 5316 the following: 
‘‘§ 5317. New freedom program 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) RECIPIENT.—The term ‘recipient’ means a 
designated 
recipient 
(as 
defined 
in 
section 
5307(a)(2)) or State that receives a grant under this 
section directly. 
‘‘(2) SUBRECIPIENT.—The term ‘subrecipient’ 
means a State or local governmental authority, non-
profit organization, or operator of public transpor-
tation services that receives a grant under this sec-
tion indirectly through a recipient. 
‘‘(b) GENERAL AUTHORITY.—
‘‘(1) 
GRANTS.—The 
Secretary 
may 
make 
grants to under this section to a recipient for new 
public transportation services and public transpor-
tation alternatives beyond those required by the 
Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) that assist individuals with disabil-
ities with transportation, including transportation to 
and from jobs and employment support services. 
‘‘(2) ADMINISTRATIVE EXPENSES.—A recipient 
may use not more than 10 percent of the amounts
265
apportioned to the recipient under this section to ad-
minister, plan, and provide technical assistance for 
a project funded under this section. 
‘‘(c) APPORTIONMENTS.—
‘‘(1) FORMULA.—The Secretary shall apportion 
amounts made available to carry out this section as 
follows: 
‘‘(A) 60 percent of the funds shall be ap-
portioned among designated recipients (as de-
fined in section 5307(a)(2)) for urbanized areas 
with a population of 200,000 or more in the 
ratio that—
‘‘(i) the number of individuals with 
disabilities in each such urbanized area; 
bears to 
‘‘(ii) the number of individuals with 
disabilities in all such urbanized areas. 
‘‘(B) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in each State; 
bears to
266
‘‘(ii) the number of individuals with 
disabilities in urbanized areas with a popu-
lation of less than 200,000 in all States. 
‘‘(C) 20 percent of the funds shall be ap-
portioned among the States in the ratio that—
‘‘(i) the number of individuals with 
disabilities in other than urbanized areas 
in each State; bears to 
‘‘(ii) the number of individuals with 
disabilities in other than urbanized areas 
in all States. 
‘‘(2) USE OF APPORTIONED FUNDS.—Except as 
provided in paragraph (3)—
‘‘(A) funds apportioned under paragraph 
(1)(A) shall be used for projects serving urban-
ized areas with a population of 200,000 or 
more; 
‘‘(B) funds apportioned under paragraph 
(1)(B) shall be used for projects serving urban-
ized areas with a population of less than 
200,000; and 
‘‘(C) funds apportioned under paragraph 
(1)(C) shall be used for projects serving other 
than urbanized areas. 
‘‘(3) TRANSFERS.—
267
‘‘(A) IN GENERAL.—A State may transfer 
any funds apportioned to it under subparagraph 
(B) or (C) of subsection (c)(1), or both, to an 
apportionment under section 5311(c) or 5336, 
or both. 
‘‘(B) LIMITED TO ELIGIBLE PROJECTS.—
Any funds transferred pursuant to this para-
graph shall be made available only for eligible 
projects selected under this section. 
‘‘(C) CONSULTATION.—A State may make 
a transfer of an amount under this subsection 
only after consulting with responsible local offi-
cials and publicly owned operators of public 
transportation in each area for which the 
amount originally was awarded under this sec-
tion. 
‘‘(d) COMPETITIVE PROCESS FOR GRANTS TO SUB-
RECIPIENTS.—
‘‘(1) AREAWIDE SOLICITATIONS.—A recipient of 
funds apportioned under subsection (c)(1)(A) shall 
conduct, in cooperation with the appropriate metro-
politan planning organization, an areawide solicita-
tion for applications for grants to the recipient and 
subrecipients under this section.
268
‘‘(2) STATEWIDE SOLICITATION.—A recipient of 
funds apportioned under subsection (c)(1)(B) or 
(c)(1)(C) shall conduct a statewide solicitation for 
applications for grants to the recipient and sub-
recipients under this section. 
‘‘(3) APPLICATION.—Recipients and subrecipi-
ents seeking to receive a grant from funds appor-
tioned under subsection (c) shall submit to the re-
cipient an application in the form and in accordance 
with such requirements as the recipient shall estab-
lish. 
‘‘(4) GRANT
AWARDS.—The recipient shall 
award grants under paragraphs (1) and (2) on a 
competitive basis. 
‘‘(e) GRANT REQUIREMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under this section shall be subject 
to all the requirements of section 5307. 
‘‘(2) 
EMPLOYEE
PROTECTIVE
ARRANGE-
MENTS.—Section 5333(b) shall apply to grants 
under this section, except that the Secretary of 
Labor shall utilize, for urbanized areas with a popu-
lation of less than 200,000 and for other than ur-
banized areas, a special warranty described in sec-
tion 215.7 of title 29, Code of Federal Regulations,
269
that provides a fair and equitable arrangement to 
protect the interest of employees. 
‘‘(3) FAIR AND EQUITABLE DISTRIBUTION.—A 
recipient of a grant under this section shall certify 
that allocations of the grant to subrecipients are dis-
tributed on a fair and equitable basis. 
‘‘(f) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall coordi-
nate activities under this section with related activi-
ties under programs of other Federal departments 
and agencies. 
‘‘(2) WITH NONPROFIT PROVIDERS.—A recipi-
ent that transfers funds to an apportionment under 
section 5336 pursuant to subsection (c)(2) shall cer-
tify that the project for which the funds are re-
quested under this section has been coordinated with 
nonprofit providers of services. 
‘‘(3) PROJECT SELECTION AND PLANNING.—A 
recipient of funds under this section shall certify 
that—
‘‘(A) the projects selected were derived 
from a locally developed, coordinated public 
transit-human services transportation plan; and 
‘‘(B) the plan was developed through a 
process that included representatives of public,
270
private, and nonprofit transportation and 
human services providers and participation by 
the public. 
‘‘(g) GOVERNMENT’S SHARE OF COSTS.—
‘‘(1) CAPITAL PROJECTS.—A grant for a capital 
project under this section may not exceed 80 percent 
of the net capital costs of the project, as determined 
by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(3) REMAINDER.—The remainder of the net 
project costs—
‘‘(A) may be provided from an undistrib-
uted cash surplus, a replacement or deprecia-
tion cash fund or reserve, a service agreement 
with a State or local social service agency or a 
private social service organization, or new cap-
ital; and 
‘‘(B) may be derived from amounts appro-
priated to or made available to a department or 
agency of the Government (other than the De-
partment of Transportation) that are eligible to 
be expended for transportation.
271
‘‘(4) USE OF CERTAIN FUNDS.—For purposes 
of paragraph (3)(B), the prohibitions on the use of 
funds for matching requirements under section 
403(a)(5)(C)(vii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal 
or State funds to be used for transportation pur-
poses. 
‘‘(5) 
LIMITATION
ON
OPERATING
ASSIST-
ANCE.—A recipient carrying out a program of oper-
ating assistance under this section may not limit the 
level or extent of use of the Government grant for 
the payment of operating expenses.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by inserting after the item relating 
to section 5316 the following:
‘‘5317. New freedom program.’’.
SEC. 3019. BUS TESTING FACILITY. 
(a) IN GENERAL.—Section 5318 is amended—
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) FACILITY.—The Secretary of Transportation 
shall maintain one facility for testing a new bus model 
for maintainability, reliability, safety, performance (in-
cluding braking performance), structural integrity, fuel 
economy, emissions, and noise.’’;
272
(2) in subsection (d) by striking ‘‘under section 
5309(m)(1)(C) of this title’’ and inserting ‘‘to carry 
out this section’’; and 
(3) by striking subsection (e) and inserting the 
following: 
‘‘(e) ACQUIRING NEW BUS MODELS.—Amounts ap-
propriated or made available under this chapter may be 
obligated or expended to acquire a new bus model only 
if a bus of that model has been tested at the facility main-
tained by the Secretary under subsection (a).’’. 
(b) CONFORMING AMENDMENT.—Section 5323(c) is 
repealed. 
SEC. 3020. BICYCLE FACILITIES. 
The first sentence of section 5319 is amended—
(1) by striking ‘‘5309(h),’’ and inserting 
‘‘5309(g),’’; and 
(2) by striking ‘‘and 5311’’ and inserting 
‘‘5311, and 5320’’. 
SEC. 3021. TRANSIT IN THE PARKS PILOT PROGRAM. 
(a) IN GENERAL.—Section 5320 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 5320. Transit in the parks pilot program 
‘‘(a) PUBLIC TRANSPORTATION DEFINED.—In this 
section, the term ‘public transportation’ means general or 
special transportation to the public by a conveyance that
273
is publicly or privately owned. Such term does not include 
schoolbus or charter transportation but does include sight-
seeing transportation. 
‘‘(b) ESTABLISHMENT.—Not later than 90 days after 
the date of enactment of the Federal Public Transpor-
tation Act of 2004, the Secretary of Transportation and 
the Secretary of the Interior shall enter into a memo-
randum of understanding to establish a transit in the 
parks pilot program in accordance with the requirements 
of this section. 
‘‘(c) PURPOSE.—The purpose of the pilot program 
shall be to encourage and promote the development of 
transportation systems described in section 5301(a) within 
units of the National Park System to improve visitor mo-
bility and enjoyment (including visitors with disabilities), 
reduce pollution and congestion, and enhance resource 
protection through the use of public transportation. 
‘‘(d) ADMINISTRATION OF PROGRAM.—The program 
shall be administered by the Secretary of Transportation, 
in consultation with the Secretary of the Interior. 
‘‘(e) MEMORANDUM OF UNDERSTANDING.—
‘‘(1) PLANNING.—The memorandum of under-
standing under subsection (b) shall include transpor-
tation planning procedures that are consistent with
274
the metropolitan and statewide planning processes 
required under chapter 52. 
‘‘(2) PROGRAMS.—The memorandum of under-
standing shall include descriptions of programs and 
activities eligible for assistance under the pilot pro-
gram. 
‘‘(3) EXCEPTIONS.—The memorandum of un-
derstanding shall limit or modify the applicability of 
the provisions referred to in subsection (f) to the ex-
tent necessary to carry out the objectives of this sec-
tion and to be compatible with the laws and regula-
tions governing units of the National Park System. 
‘‘(f) ELIGIBLE USE OF FUNDS.—Except as provided 
under subsection (e)(3), the Secretary may provide funds 
made available to carry out this section to the Secretary 
of the Interior under interagency agreements for the fol-
lowing purposes: 
‘‘(1) PLANNING, ENGINEERING, DESIGN, AND 
EVALUATION.—Planning, engineering, design, and 
evaluation of public transportation projects in units 
of the National Park System, and for technical stud-
ies, in accordance with section 5305(b)(2). 
‘‘(2) 
PUBLIC
TRANSPORTATION
CAPITAL 
PROJECTS.—Public transportation capital projects 
(as defined in section 5302(a)(1)) for such units in
275
accordance with all the terms and conditions to 
which a grant is made under subsections (a), (b), 
(c), and (d) of section 5307 and such other terms 
and conditions as are determined by the Secretary. 
The Secretary of the Interior shall act as the des-
ignated recipient for the purposes of subsection 
(a)(2) of section 5307. 
‘‘(3) OPERATING
COSTS.—Operating costs of 
equipment and facilities used in public transpor-
tation for such units. 
‘‘(g) GOVERNMENT SHARE OF COSTS.—
‘‘(1) CAPITAL
PROJECTS.—The Government 
share of the cost of any capital project or activity 
under this section shall be 100 percent of the costs 
of the project, as determined by the Secretary. 
‘‘(2) OPERATING ASSISTANCE.—A grant made 
under this section for operating assistance may not 
exceed 50 percent of the net operating costs of the 
project, as determined by the Secretary. 
‘‘(h) SAVINGS CLAUSE.—Nothing in this section shall 
be construed as superseding, amending, modifying, or re-
pealing any provision of law applicable to units of the Na-
tional Park System.’’.
276
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is further amended by inserting after the 
item relating to section 5319 the following:
‘‘5320. Transit in the parks pilot program.’’.
SEC. 3022. HUMAN RESOURCE PROGRAMS. 
Section 5322 is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘The Secretary’’; and 
(2) by adding at the end the following: 
‘‘(b) GRANTS
TO
HIGHER
LEARNING
INSTITU-
TIONS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to nonprofit institutions of 
higher learning—
‘‘(A) to conduct research and investiga-
tions into the theoretical or practical problems 
of public transportation; and 
‘‘(B) to train individuals to conduct fur-
ther research or obtain employment in an orga-
nization that plans, builds, operates, or man-
ages a public transportation system. 
‘‘(2) RESEARCH
AND
INVESTIGATIONS.—Re-
search and investigations under this subsection in-
clude—
‘‘(A) the design and use of public transpor-
tation systems and public roads and highways;
277
‘‘(B) the interrelationship between various 
modes of urban, suburban, rural, and intercity 
transportation; 
‘‘(C) the role of transportation planning in 
overall urban planning; 
‘‘(D) public preferences in transportation; 
‘‘(E) the economic allocation of transpor-
tation resources; and 
‘‘(F) the legal, financial, engineering, and 
esthetic aspects of public transportation. 
‘‘(3) PREFERENCE.—When making a grant 
under this subsection, the Secretary shall give pref-
erence to an institution that brings together knowl-
edge and expertise in the various social science and 
technical disciplines related to public transportation 
problems. 
‘‘(c) FELLOWSHIPS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Sec-
retary may make grants to States, local govern-
mental authorities, and operators of public transpor-
tation systems to provide fellowships to train per-
sonnel employed in managerial, technical, and pro-
fessional positions in the public transportation field. 
‘‘(2) TERMS.—
278
‘‘(A) PERIOD OF TRAINING.—A fellowship 
under this subsection may be for not more than 
one year of training in an institution that offers 
a program applicable to the public transpor-
tation industry. 
‘‘(B) SELECTION
OF
INDIVIDUALS.—The 
recipient of the grant shall select an individual 
on the basis of demonstrated ability and for the 
contribution the individual reasonably can be 
expected to make to an efficient public trans-
portation operation. 
‘‘(C) AMOUNT.—A grant for a fellowship 
may not be more than the lesser of $65,000 or 
75 percent of—
‘‘(i) tuition and other charges to the 
fellowship recipient; 
‘‘(ii) additional costs incurred by the 
training institution and billed to the grant 
recipient; and 
‘‘(iii) the regular salary of the fellow-
ship recipient for the period of the fellow-
ship to the extent the salary is actually 
paid or reimbursed by the grant recipi-
ent.’’.
279
SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE. 
(a) INTERESTS IN PROPERTY.—Section 5323(a)(1) is 
amended—
(1) in the matter preceding subparagraph (A)—
(A) by striking ‘‘private mass transpor-
tation company’’ each place it appears and in-
serting ‘‘private company engaged in public 
transportation’’; 
(B) by striking ‘‘mass transportation 
equipment or a mass transportation facility’’ 
and inserting ‘‘a public transportation facility 
or equipment’’; and 
(C) by striking ‘‘mass transportation com-
pany’’ and inserting ‘‘public transportation 
company’’; and 
(2) in subparagraph (B) by striking ‘‘private 
mass transportation companies’’ and inserting ‘‘pri-
vate companies engaged in public transportation’’. 
(b) 
NOTICE
AND
PUBLIC
HEARING.—Section 
5323(b) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1) An application’’ and 
inserting the following: 
‘‘(1) APPLICATIONS.—An application’’; 
(B) in the matter preceding subparagraph 
(A) by striking ‘‘or loan’’; and
280
(C) by moving subparagraphs (A) through 
(D) 2 ems to the right; 
(2) in paragraph (2) by striking ‘‘(2) Notice of’’ 
and inserting the following: 
‘‘(2) NOTICE.—Notice of’’; and 
(3) by adding at the end the following: 
‘‘(3) ENVIRONMENTAL RECORD.—An applicant 
shall include in the environmental record for a 
project under this chapter evidence that the appli-
cant has complied with the requirements of subpara-
graphs (A) through (D) of paragraph (1).’’. 
(c) CONDITION ON CHARTER BUS TRANSPORTATION 
SERVICE.—Section 5323(d) is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—
‘‘(A) INVESTIGATIONS.—On receiving a 
complaint about a violation of the agreement 
required under paragraph (1), the Secretary 
shall investigate and decide whether a violation 
has occurred.
281
‘‘(B) ENFORCEMENT OF AGREEMENTS.—If 
the Secretary decides that a violation has oc-
curred, the Secretary shall correct the violation 
under terms of the agreement. 
‘‘(C) ADDITIONAL REMEDIES.—In addition 
to any remedy specified in the agreement, the 
Secretary shall bar a recipient or an operator 
from receiving Federal transit assistance in an 
amount the Secretary considers appropriate if 
the Secretary finds a pattern of violations of 
the agreement.’’. 
(d) 
BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—Section 5323(e) is amended to read as follows: 
‘‘(e) BOND
PROCEEDS
ELIGIBLE
FOR
LOCAL 
SHARE.—
‘‘(1) USE AS LOCAL MATCHING FUNDS.—Not-
withstanding any other provision of law, a recipient 
of assistance under section 5307 or 5309 may use 
the proceeds from the issuance of revenue bonds as 
part of the local matching funds for a capital 
project. 
‘‘(2) MAINTENANCE
OF
EFFORT.—The Sec-
retary shall approve of the use of the proceeds from 
the issuance of revenue bonds for the remainder of 
the net project cost only if the Secretary finds that
282
the aggregate amount of financial support for public 
transportation in the urbanized area provided by the 
State and affected local governmental authorities 
during the next 3 fiscal years, as programmed in the 
State transportation improvement program under 
chapter 52 is not less than the aggregate amount 
provided by the State and affected local govern-
mental authorities in the urbanized area during the 
preceding 3 fiscal years. 
‘‘(3) DEBT SERVICE RESERVE.—The Secretary 
may reimburse an eligible recipient for deposits of 
bond proceeds in a debt service reserve that recipient 
established pursuant to section 5302(a)(1)(K) from 
amounts made available to the recipient under sec-
tion 5307 or 5309, or both; except that such reim-
bursement in a fiscal year may not exceed 10 per-
cent of the amounts made available to the recipient 
under section 5307 in such fiscal year.’’. 
(e) SCHOOLBUS TRANSPORTATION.—Section 5323(f) 
is amended—
(1) by striking ‘‘(1) Financial assistance’’ and 
inserting the following: 
‘‘(1) AGREEMENTS.—Financial assistance’’; 
(2) in paragraph (1) by moving subparagraphs 
(A), (B), and (C) 2 ems to the right; and
283
(3) by striking paragraph (2) and inserting the 
following: 
‘‘(2) VIOLATIONS.—If the Secretary finds that 
an applicant, governmental authority, or publicly 
owned operator has violated the agreement required 
under paragraph (1), the Secretary shall bar a re-
cipient or an operator from receiving Federal transit 
assistance in an amount the Secretary considers ap-
propriate.’’. 
(f) BUYING BUSES UNDER OTHER LAWS.—Section 
5323(g) is amended by striking ‘‘103(e)(4)’’ each place 
it appears and inserting ‘‘133’’. 
(g) BUY AMERICA.—Section 5323(j)(5) is amended 
by striking ‘‘the Intermodal Surface Transportation Effi-
ciency Act of 1991 (Public Law 102–240, 105 Stat. 
1914)’’ and inserting ‘‘the Federal Public Transportation 
Act of 2004’’. 
(h) RELATIONSHIP
TO
OTHER
LAWS.—Section 
5323(l) is amended to read as follows: 
‘‘(l) RELATIONSHIP TO OTHER LAWS.—Section 1001 
of title 18 applies to a certificate, submission, or statement 
provided under this chapter. The Secretary may terminate 
financial assistance under this chapter and seek reim-
bursement directly, or by offsetting amounts, available 
under this chapter, when a false or fraudulent statement
284
or related act within the meaning of section 1001 is made 
in connection with a Federal transit program.’’. 
(i) GRANT
REQUIREMENTS.—Section 5323(o) is 
amended by striking ‘‘the Transportation Infrastructure 
Finance and Innovation Act of 1998’’ and inserting 
‘‘chapter 6 (other than section 609) of title 23’’. 
(j) TRANSFER OF LANDS OR INTERESTS IN LANDS 
OWNED
BY
THE UNITED STATES.—Section 5323 is 
amended by adding at the end the following: 
‘‘(p) TRANSFER OF LANDS OR INTERESTS IN LANDS 
OWNED BY THE UNITED STATES.—
‘‘(1) IDENTIFICATION
OF
LANDS
NECESSARY 
FOR TRANSIT PURPOSES.—If the Secretary deter-
mines that any part of the lands or interests in 
lands owned by the United States and made avail-
able as a result of a military base closure is nec-
essary for public transportation purposes eligible 
under this chapter, including corridor preservation, 
the Secretary shall file with the Secretary of the De-
partment supervising the administration of such 
lands or interests in lands a map showing the por-
tion of such lands or interests in lands which is de-
sired to be transferred for public transportation pur-
poses.
285
‘‘(2) DEADLINE FOR CERTIFICATION.—If, with-
in 4 months of such filing, the Secretary of such De-
partment has not certified to the Secretary that the 
proposed transfer of such land is contrary to the 
public interest or inconsistent with the purposes for 
which such land has been reserved or has agreed to 
the transfer under conditions that the Secretary of 
such Department considers necessary for the ade-
quate protection and utilization of the reserve, then 
such land and materials may be appropriated and 
transferred to a State, or local government, or public 
transportation operator for such purposes and sub-
ject to the conditions so specified. 
‘‘(3) REVERSION.—If at any time such lands 
are no longer needed for public transportation pur-
poses, notice shall be given to the Secretary by the 
State, local government, or public transportation op-
erator that received the land, and such lands shall 
immediately revert to the control of the Secretary of 
the Department from which the land was originally 
transferred.’’. 
SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS. 
(a) IN GENERAL.—Section 5324 is amended to read 
as follows:
286
‘‘§ 5324. Special provisions for capital projects 
‘‘(a) RELOCATION PROGRAM REQUIREMENTS.—Fi-
nancial assistance may be provided under section 5309 
only if the Secretary decides that—
‘‘(1) an adequate relocation program is being 
carried out for families displaced by a project; and 
‘‘(2) an equal number of decent, safe, and sani-
tary dwellings are being, or will be, provided to those 
families in the same area or in another area gen-
erally not less desirable for public utilities and public 
and commercial facilities, at rents or prices within 
the financial means of those families, and with rea-
sonable access to their places of employment. 
‘‘(b) ADVANCE REAL PROPERTY ACQUISITIONS.—
[Reserved.] 
‘‘(c) CONSIDERATION OF ECONOMIC, SOCIAL, AND 
ENVIRONMENTAL INTERESTS.—
‘‘(1) COOPERATION
AND
CONSULTATION.—In 
carrying out the policy of section 5301(e), the Sec-
retary shall cooperate and consult with the Secre-
taries of the Interior, Health and Human Services, 
and Housing and Urban Development and the Ad-
ministrator of the Environmental Protection Agency 
on each project that may have a substantial impact 
on the environment.
287
‘‘(2) PUBLIC
PARTICIPATION
IN
ENVIRON-
MENTAL
REVIEWS.—In performing environmental 
reviews, the Secretary shall review each transcript of 
a hearing submitted under section 5323(b) to estab-
lish that an adequate opportunity to present views 
was given to all parties having a significant eco-
nomic, social, or environmental interest in the 
project, and that the project application includes a 
record of—
‘‘(A) the environmental impact of the pro-
posal; 
‘‘(B) adverse environmental effects that 
cannot be avoided; 
‘‘(C) alternatives to the proposal; and 
‘‘(D) irreversible and irretrievable impacts 
on the environment. 
‘‘(3) APPROVAL OF APPLICATIONS FOR ASSIST-
ANCE.—
‘‘(A) FINDINGS BY THE SECRETARY.—The 
Secretary may approve an application for finan-
cial assistance for a capital project in accord-
ance with this chapter only if the Secretary 
makes written findings, after reviewing the ap-
plication and the transcript of any hearing held
288
before a State or local governmental authority 
under section 5323(b), that—
‘‘(i) 
an 
adequate 
opportunity 
to 
present views was given to all parties hav-
ing a significant economic, social, or envi-
ronmental interest; 
‘‘(ii) the preservation and enhance-
ment of the environment and the interest 
of the community in which the project is 
located were considered; and 
‘‘(iii) no adverse environmental effect 
is likely to result from the project, or no 
feasible and prudent alternative to the ef-
fect exists and all reasonable steps have 
been taken to minimize the effect. 
‘‘(B) HEARING.—If a hearing has not been 
conducted or the Secretary decides that the 
record of the hearing is inadequate for making 
the findings required by this subsection, the 
Secretary shall conduct a hearing on an envi-
ronmental issue raised by the application after 
giving adequate notice to interested persons. 
‘‘(C) AVAILABILITY
OF
FINDINGS.—The 
Secretary’s findings under subparagraph (A) 
shall be made a matter of public record.’’.
289
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5324 and inserting the following:
‘‘5324. Special provisions for capital projects.’’.
SEC. 3025. CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—Section 5325 is amended—
(1) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) COMPETITION.—Recipients of Federal assist-
ance under this chapter shall conduct all procurement 
transactions involving such assistance in a manner pro-
viding full and open competition, as determined by the 
Secretary. 
‘‘(b) ARCHITECTURAL, ENGINEERING, AND DESIGN 
CONTRACTS.—
‘‘(1) 
PROCEDURES
FOR
AWARDING
CON-
TRACT.—A contract or requirement for program 
management, architectural engineering, construction 
management, a feasibility study, and preliminary en-
gineering, design, architectural, engineering, sur-
veying, mapping, or related services for a project for 
which Federal assistance is provided under this 
chapter shall be awarded in the same way as a con-
tract for architectural and engineering services is ne-
gotiated under chapter 11 of title 40 or an equiva-
lent qualifications-based requirement of a State.
290
‘‘(2) EFFECT
OF
STATE
LAWS.—This sub-
section does not apply to the extent a State has 
adopted, before the date of enactment of the Federal 
Public Transportation Act of 2004, by law a formal 
procedure for procuring those services. 
‘‘(3) ADMINISTRATION OF CONTRACTS.—When 
awarding such contracts, recipients of assistance 
under this chapter shall maximize efficiencies of ad-
ministration by accepting nondisputed audits con-
ducted by other governmental agencies as follows: 
‘‘(A) PERFORMANCE
OF
AUDITS.—Any 
contract or subcontract awarded under this 
chapter shall be performed and audited in com-
pliance with cost principles contained in the 
Federal Acquisition Regulation (part 31 of title 
48, Code of Federal Regulations). 
‘‘(B) INDIRECT COST RATES.—Instead of 
performing its own audits, a recipient of funds 
under a contract or subcontract awarded under 
this chapter shall accept indirect cost rates es-
tablished in accordance with the Federal Acqui-
sition Regulation for one-year applicable ac-
counting periods by a cognizant Federal or 
State government agency, if such rates are not 
currently under dispute.
291
‘‘(C) APPLICATION
OF
RATES.—Once a 
firm’s indirect cost rates are accepted under 
this paragraph, the recipient of the funds shall 
apply such rates for the purposes of contract 
estimation, negotiation, administration, report-
ing, and contract payment and shall not be lim-
ited by administrative or de facto ceilings. 
‘‘(D) 
PRENOTIFICATION; 
CONFIDEN-
TIALITY
OF
DATA.—A recipient of funds re-
questing or using the cost and rate data de-
scribed in paragraph (3) shall notify any af-
fected firm before such request or use. Such 
data shall be confidential and shall not be ac-
cessible or provided, in whole or in part, to an-
other firm or to any government agency that is 
not part of the group of agencies sharing cost 
data under this paragraph, except by written 
permission of the audited firm. If prohibited by 
law, such cost and rate data shall not be dis-
closed under any circumstances.’’; and 
(2) by adding at the end the following: 
‘‘(d) DESIGN-BUILD SYSTEM PROJECTS.—
‘‘(1) DEFINITION.—In this section, the term 
‘design-build system project’ means a project under 
which a recipient enters into a contract with a seller,
292
firm, or consortium of firms to design and build a 
public transportation system or an operable segment 
thereof that meets specific performance criteria. 
Such project may also include an option to finance, 
or operate for a period of time, the system or seg-
ment or any combination of designing, building, op-
erating, or maintaining such system or segment. 
‘‘(2) FINANCIAL ASSISTANCE.—Government fi-
nancial assistance under this chapter may be made 
available for the capital costs of a design-build sys-
tem project after the recipient complies with Govern-
ment requirements. 
‘‘(e) MULTIYEAR ROLLING STOCK.—
‘‘(1) CONTRACTS.—A recipient procuring roll-
ing stock with Government financial assistance 
under this chapter may make a multiyear contract 
to buy the rolling stock and replacement parts under 
which the recipient has an option to buy additional 
rolling stock or replacement parts for not more than 
5 years after the date of the original contract. 
‘‘(2) COOPERATION AMONG RECIPIENTS.—The 
Secretary shall allow at least 2 recipients to act on 
a cooperative basis to procure rolling stock in com-
pliance with this subsection and other Government 
procurement requirements.
293
‘‘(f) ACQUIRING ROLLING STOCK.—A recipient of fi-
nancial assistance under this chapter may enter into a 
contract to expend that assistance to acquire rolling 
stock—
‘‘(1) based on—
‘‘(A) initial capital costs; or 
‘‘(B) performance, standardization, life 
cycle costs, and other factors; or 
‘‘(2) with a party selected through a competi-
tive procurement process. 
‘‘(g) EXAMINATION OF THE RECORDS.—Upon re-
quest, the Secretary, the Comptroller General, or a rep-
resentative of the Secretary or the Comptroller General 
shall have access to and the right to examine and inspect 
all records, documents, papers, including contracts, re-
lated to a project for which a grant is made under this 
chapter. 
‘‘(h) GRANT PROHIBITIONS.—A grant may not be 
used to support a procurement that uses an exclusionary 
or discriminatory specification.’’. 
(b) CONFORMING AMENDMENTS.—Section 5326, and 
the item relating to section 5326 in the analysis for chap-
ter 53, are repealed.
294
SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND RE-
VIEW. 
(a) 
PROJECT
MANAGEMENT
PLAN
REQUIRE-
MENTS.—Section 5327(a) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(11); 
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(13) safety and security management.’’. 
(b) LIMITATIONS.—Section 5327(c) is amended to 
read as follows:
‘‘(c) LIMITATIONS.—
‘‘(1) LIMITATIONS
ON
USE
OF
AVAILABLE 
AMOUNTS.—The Secretary may use not more than 
.5 percent of amounts made available for a fiscal 
year to carry out section 5311, not more than .75 
percent of amounts made available for a fiscal year 
to carry out section 5307, and not more than 1 per-
cent of amounts made available for a fiscal year to 
carry out section 5309 to make contracts for the fol-
lowing activities: 
‘‘(A) To oversee the construction of a 
major project. 
‘‘(B) To review and audit the safety and 
security, procurement, management, and finan-
295
cial compliance of a recipient or subrecipient of 
funds under sections 5307, 5309, and 5311. 
‘‘(C) To provide technical assistance to 
correct deficiencies identified in compliance re-
views and audits carried out under this section. 
‘‘(2) LIMITATIONS
ON
APPLICABILITY.—Sub-
sections (a), (b), and (e) do not apply to contracts 
under this section for activities described in para-
graphs (1)(B) and (1)(C). 
‘‘(3) GOVERNMENT’S SHARE OF COSTS.—The 
Government shall pay the entire cost of carrying out 
a contract under this subsection.’’. 
SEC. 3027. INVESTIGATIONS OF SAFETY AND HAZARDS. 
(a) IN GENERAL.—Section 5329 is amended to read 
as follows: 
‘‘§ 5329. Investigation of safety and hazards 
‘‘(a) IN GENERAL.—The Secretary may investigate 
safety and security risks associated with a condition in 
equipment, a facility, or an operation financed under this 
chapter that the Secretary believes causes a serious hazard 
of death or injury to establish the nature and extent of 
the condition and how to eliminate, mitigate, or correct 
it. 
‘‘(b) PLANS
FOR ELIMINATING, MITIGATING, OR 
CORRECTING HAZARDS.—If the Secretary establishes that
296
a condition causes a hazard, the Secretary shall require 
the local governmental authority receiving amounts under 
this chapter to submit a plan for eliminating, mitigating, 
or correcting it. 
‘‘(c) WITHHOLDING FINANCIAL ASSISTANCE.—Fi-
nancial assistance under this chapter, in an amount to be 
determined by the Secretary, may be withheld until a plan 
is approved and carried out.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5329 and inserting the following:
‘‘5329. Investigation of safety and hazards.’’.
SEC. 3028. STATE SAFETY OVERSIGHT. 
(a) IN GENERAL.—Section 5330 is amended—
(1) by striking the section heading and all that 
follows through subsection (a) and inserting the fol-
lowing: 
‘‘§ 5330. State safety oversight 
‘‘(a) APPLICATION.—This section applies only to—
‘‘(1) States that have rail fixed guideway public 
transportation systems not subject to regulation by 
the Federal Railroad Administration; and 
‘‘(2) States that are designing rail fixed guide-
way public transportation systems that will not be 
subject to regulation by the Federal Railroad Ad-
ministration.’’;
297
(2) in subsection (d) by inserting ‘‘shall ensure 
uniform safety standards and enforcement and’’ 
after ‘‘affected States’’; and 
(3) by striking subsection (f). 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5330 and inserting the following:
‘‘5330. State safety oversight.’’.
SEC. 3029. CONTROLLED SUBSTANCES AND ALCOHOL MIS-
USE TESTING. 
(a) DEFINITIONS.—Section 5331(a)(3) is amended 
by inserting after ‘‘title’’ the following: ‘‘or section 2303a, 
7101(i), or 7302(e) of title 46. The Secretary may also 
decide that a form of public transportation is covered ade-
quately, for employee alcohol and controlled substances 
testing purposes, under the alcohol and controlled sub-
stance statutes or regulations of an agency within the De-
partment of Transportation or the Coast Guard.’’. 
(b) TECHNICAL CORRECTIONS.—Subsections (b)(1) 
and (g) of section 5331 are each amended by striking ‘‘or 
section 103(e)(4) of title 23’’. 
(c) REGULATIONS.—Section 5331(f) is amended by 
striking paragraph (3). 
SEC. 3030. EMPLOYEE PROTECTIVE ARRANGEMENTS. 
Section 5333(b)(1) is amended by striking ‘‘5318(d), 
5323(a)(1), (b), (d), and (e), 5328, 5337, and 5338(b)’’
298
each place it appears and inserting ‘‘5316, 5317, 5318, 
5320, 5323(a)(1), 5323(b), 5323(d), 5328, 5337, and 
5338(b)’’. 
SEC. 3031. ADMINISTRATIVE PROCEDURES. 
Section 5334 is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (9); 
(B) by striking the period at the end of 
paragraph (10) and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(11) issue regulations as necessary to carry 
out the purposes of this chapter.’’; 
(2) by striking subsection (i); 
(3) by redesignating subsections (b) through (h) 
as subsections (c) through (i), respectively; 
(4) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) PROHIBITIONS AGAINST REGULATING OPER-
ATIONS AND CHARGES.—
‘‘(1) IN GENERAL.—Except for purposes of na-
tional defense or in the event of a national or re-
gional emergency, the Secretary may not regulate 
the operation, routes, or schedules of a public trans-
portation system for which a grant is made under
299
this chapter, nor may the Secretary regulate the 
rates, fares, tolls, rentals, or other charges pre-
scribed by any provider of public transportation. 
‘‘(2) LIMITATION
ON
STATUTORY
CONSTRUC-
TION.—Nothing in this subsection shall be construed 
to prevent the Secretary from requiring a recipient 
of funds under this chapter to comply with the 
terms and conditions of its Federal assistance agree-
ment.’’; and 
(5) in subsection (c)(4) (as so redesignated)—
(A) by striking ‘‘subsections (h) and (i)’’ 
and inserting ‘‘subsection (i)’’; and 
(B) 
by 
striking 
‘‘5323(c), 
5323(e), 
5324(c),’’. 
SEC. 3032. NATIONAL TRANSIT DATABASE. 
(a) IN GENERAL.—Section 5335 is amended—
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5335. National transit database’’; 
(2) by striking subsection (b); and 
(3) in subsection (a)—
(A) by striking ‘‘(1) To help’’ and insert-
ing ‘‘To help’’; and
300
(B) by striking ‘‘(2) The Secretary’’ and 
inserting ‘‘(b) REPORTING AND UNIFORM SYS-
TEMS.—The Secretary’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 53 is amended by striking the item relating to 
section 5335 and inserting the following:
‘‘5335. National transit database.’’.
SEC. 3033. APPORTIONMENTS BASED ON FIXED GUIDEWAY 
FACTORS. 
(a) DISTRIBUTION.—Section 5337 is amended by 
striking the section designation and all that follows before 
paragraph (1) of subsection (a) and inserting the fol-
lowing: 
‘‘§ 5337. Apportionment based on fixed guideway fac-
tors 
‘‘(a) DISTRIBUTION.—The Secretary shall apportion 
amounts made available for fixed guideway modernization 
under section 5338(b) as follows:’’. 
(b) ROUTE SEGMENTS TO BE INCLUDED IN APPOR-
TIONMENT FORMULAS.—Section 5337(e) is amended by 
striking paragraph (1) and all that follows through ‘‘(2) 
OTHER STANDARDS.—’’. 
(c) CONFORMING AMENDMENT.—The item relating 
to section 5337 in the table of sections for chapter 53 is 
amended to read as follows:
‘‘5337. Apportionment based on fixed guideway factors.’’.
301
SEC. 3034. AUTHORIZATIONS. 
Section 5338 is amended to read as follows: 
‘‘§ 5338. Authorizations 
‘‘(a) FORMULA GRANTS.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 
5307, 5310, 5311, 5316, 5317, and 5320 of 
this chapter, 1118(c) of the Transportation Eq-
uity Act: A Legacy for Users (relating to the 
nonmotorized transportation pilot program), 
and section 3038 of the Transportation Equity 
Act for the 21st Century (49 U.S.C. 5310 note; 
112 Stat. 392–393) $3,582,400,000 for fiscal 
year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available under subparagraph 
(A), there are authorized to be appropriated to 
carry out sections 5307, 5310, 5311, 5316, and 
5317, of this chapter, 1118(c) of the Transpor-
tation Equity Act: A Legacy for Users (relating 
to the nonmotorized transportation pilot pro-
gram) and section 3038 of the Transportation 
Equity Act for the 21st Century (49 U.S.C.
302
5310 note; 112 Stat. 392–393) $885,700,000 
for fiscal year 2004. 
‘‘(C) ALLOCATION OF FUNDS.—Of the ag-
gregate of amounts made available by and ap-
propriated under this paragraph for a fiscal 
year—
‘‘(i) $4,849,950 shall be available to 
the Alaska Railroad for improvements to 
its passenger operations under section 
5307; 
‘‘(ii) $175,000,000 shall be available 
to provide job access and reverse commute 
formula grants under section 5316; 
‘‘(iii) $100,000,000 shall be available 
to carry out the New Freedom program 
under section 5317; 
‘‘(iv) $100,000,000 shall be available 
to provide clean fuels formula grants under 
section 5308; 
‘‘(v) $10,000,000 shall be available to 
carry out the transit in the parks pilot pro-
gram under section 5320; 
‘‘(vi) $5,000,000 shall be available to 
carry out the nonmotorized transportation 
pilot program under section 1118(c) of the
305
‘‘(iii) $10,000,000 shall be available 
to carry out section 3038 of the Transpor-
tation Equity Act for the 21st Century (49 
U.S.C. 5310 note); and 
‘‘(iv) $4,849,950 shall be available to 
the Alaska Railroad for improvements to 
its passenger operations under section 
5307. 
‘‘(C) ALLOCATION OF FUNDS FOR JOB AC-
CESS
AND
REVERSE
COMMUTE
FORMULA 
GRANTS.—Of the aggregate of amounts made 
available by this paragraph, $185,000,000 for 
fiscal year 2005, $195,000,000 for fiscal year 
2006, $205,000,000 for fiscal year 2007, 
$215,000,000 
for 
fiscal 
year 
2008, 
and 
$225,000,000 for fiscal year 2009 shall be 
available to carry out section 5316. 
‘‘(D) ALLOCATION
OF
FUNDS
FOR
NEW 
FREEDOM
PROGRAM.—Of the aggregate of 
amounts made available by this paragraph, 
$120,000,000 
for 
fiscal 
year 
2005, 
$125,000,000 
for 
fiscal 
year 
2006, 
$150,000,000 
for 
fiscal 
year 
2007, 
$150,000,000 
for 
fiscal 
year 
2008, 
and
306
$175,000,000 for fiscal year 2009 shall be 
available to carry out section 5317. 
‘‘(E) ALLOCATION OF FUNDS FOR TRANSIT 
IN THE PARKS PILOT PROGRAM.—Of the aggre-
gate of amounts made available by this para-
graph, $10,000,000 for fiscal year 2005, 
$20,000,000 for fiscal year 2006, $20,000,000 
for fiscal year 2007, $20,000,000 for fiscal year 
2008, and $20,000,000 for fiscal year 2009 
shall be available to carry out section 5320. 
‘‘(F) ALLOCATION
OF
FUNDS
FOR
NON-
MOTORIZED
TRANSPORTATION
PILOT
PRO-
GRAM.—Of the aggregate of amounts made 
available by this paragraph, $5,000,000 for fis-
cal year 2005, $5,000,000 for fiscal year 2006, 
$10,000,000 for fiscal year 2007, $10,000,000 
for fiscal year 2008, and $10,000,000 for fiscal 
year 2009 shall be available to carry out section 
1118(c) of the Transportation Equity Act: A 
Legacy for Users (relating to the nonmotorized 
transportation pilot program). 
‘‘(G) REMAINDER.—Of the remainder of 
the aggregate amounts made available by this 
paragraph for a fiscal year after the allocations
307
under subparagraphs (B) through (F) for such 
fiscal year—
‘‘(i) 2.5 percent shall be available to 
provide transportation services to elderly 
individuals and individuals with disabilities 
under section 5310; 
‘‘(ii) 8.0 percent shall be available to 
provide financial assistance for other than 
urbanized areas under section 5311; and 
‘‘(iii) 89.5 percent shall be available to 
provide financial assistance for urbanized 
areas under section 5307, subject to sec-
tion 3041(h) of the Federal Public Trans-
portation Act of 2004. 
‘‘(b) CAPITAL PROGRAM GRANTS.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out section 5309, 
$2,820,800,000 for fiscal year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph 
(A), there is authorized to be appropriated to 
carry out section 5309, $705,200,000 for fiscal 
year 2004.
308
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out section 
5309—
‘‘(i) $2,394,600,000 for fiscal year 
2005; 
‘‘(ii) $2,686,200,000 for fiscal year 
2006; 
‘‘(iii) $3,003,600,000 for fiscal year 
2007; 
‘‘(iv) $3,295,200,000 for fiscal year 
2008; and 
‘‘(v) $3,638,400,000 for fiscal year 
2009. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph 
(A), there are authorized to be appropriated to 
carry out section 5309—
‘‘(i) $1,776,400,000 for fiscal year 
2005; 
‘‘(ii) $2,000,800,000 for fiscal year 
2006; 
‘‘(iii) $2,242,400,000 for fiscal year 
2007;
309
‘‘(iv) $2,466,800,000 for fiscal year 
2008; and 
‘‘(v) $2,725,600,000 for fiscal year 
2009. 
‘‘(C) SMALL CAPITAL PROJECTS.—Before 
allocating under section 5309(m) amounts ap-
propriated under subparagraphs (A) and (B), 
the Secretary shall make available for capital 
investment grants of less than $75,000,000 
under section 5309(d)—
‘‘(i) $150,000,000 for fiscal year 
2004; 
‘‘(ii) $180,000,000 for fiscal year 
2005; 
‘‘(iii) $210,000,000 for fiscal year 
2006; 
‘‘(iv) $240,000,000 for fiscal year 
2007; 
‘‘(v) $270,000,000 for fiscal year 
2008; and 
‘‘(vi) $300,000,000 for fiscal year 
2009. 
‘‘(c) PLANNING.—
‘‘(1) FISCAL YEAR 2004.—
310
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 
5303, 5304, and 5305, $82,000,000 for fiscal 
year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph 
(A), there is authorized to be appropriated to 
carry out sections 5303, 5304, and 5305, 
$20,500,000 for fiscal year 2004. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
‘‘(A) FROM
THE
TRUST
FUND.—There 
shall be available from the Mass Transit Ac-
count of the Highway Trust Fund to carry out 
sections 5303, 5304, and 5305—
‘‘(i) $121,250,000 for fiscal year 
2005; 
‘‘(ii) $136,250,000 for fiscal year 
2006; 
‘‘(iii) $152,500,000 for fiscal year 
2007; 
‘‘(iv) $167,500,000 for fiscal year 
2008; and 
‘‘(v) $185,000,000 for fiscal year 
2009.
311
‘‘(B) ALLOCATION
OF
FUNDS.—Of the 
funds made available by this paragraph for a 
fiscal year—
‘‘(i) 82.72 percent shall be available 
for metropolitan planning under sections 
5303, 
5304, 
and 
5305 
(other 
than 
5305(e)); and 
‘‘(ii) 17.28 percent shall be available 
for State planning under section 5305(e). 
‘‘(d) RESEARCH.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 
5311(b), 5312, 5313, 5314, 5315, and 5322, 
$44,800,000 for fiscal year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph 
(A), there is authorized to be appropriated to 
carry out sections 5311(b), 5312, 5313, 5314, 
5315, and 5322, $11,200,000 for fiscal year 
2004. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—
312
‘‘(A) FROM THE GENERAL FUND.—There 
is authorized to be appropriated to carry out 
sections 5312, 5313, 5314, 5315, and 5322—
‘‘(i) $67,000,000 for fiscal year 2005; 
‘‘(ii) $74,000,000 for fiscal year 2006; 
‘‘(iii) $81,000,000 for fiscal year 
2007; 
‘‘(iv) $88,000,000 for fiscal year 
2008; and 
‘‘(v) $95,000,000 for fiscal year 2009. 
‘‘(B) ALLOCATION
OF
FUNDS
FOR
NA-
TIONAL TRANSIT INSTITUTE, NATIONAL TRAN-
SIT DATABASE, AND PROJECT ACTION EASTER 
SEALS.—Of the funds appropriated pursuant to 
this paragraph for a fiscal year—
‘‘(i) not less than $5,000,000 shall be 
available to carry out programs under the 
National Transit Institute under section 
5315; 
‘‘(ii) not less than $4,000,000 shall be 
available to carry out section 5335; and 
‘‘(iii) not less than $4,000,000 shall 
be 
available 
to 
carry 
out 
section 
5314(a)(2).
313
‘‘(C) ALLOCATION OF FUNDS FOR TRANSIT 
COOPERATIVE
RESEARCH
PROGRAM.—Of the 
funds appropriated pursuant to this paragraph, 
$12,500,000 for fiscal year 2005, $12,500,000 
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 shall be avail-
able to carry out section 5313(a). 
‘‘(D) REMAINDER.—The remainder of the 
funds appropriated pursuant to this paragraph 
for a fiscal year after the allocations under sub-
paragraphs (A) and (B) for such fiscal year 
shall be available to carry out national research 
and technology programs under sections 5312, 
5314, and 5322. 
‘‘(e) UNIVERSITY TRANSPORTATION RESEARCH.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out sections 
5505 and 5506, $8,000,000 for fiscal year 
2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available by subparagraph 
(A), there is authorized to be appropriated to
314
carry out sections 5505 and 5506, $2,000,000 
for fiscal year 2004. 
‘‘(2) FISCAL YEARS 2005 THROUGH 2009.—Sub-
ject to paragraph (3), there is authorized to be ap-
propriated to carry out sections 5505 and 5506, 
$10,000,000 for each of fiscal years 2005 through 
2009. 
‘‘(3) FUNDING
OF
UNIVERSITY
TRANSPOR-
TATION CENTERS.—
‘‘(A) IN GENERAL.—Of the amounts made 
available by and appropriated under paragraphs 
(1) and (2)—
‘‘(i) $2,000,000 for each fiscal year 
shall be available for the institution identi-
fied in section 5505(j)(4)(A), as in effect 
on the day before the date of enactment of 
the Federal Public Transportation Act of 
2004; 
‘‘(ii) $2,000,000 for each fiscal year 
shall be available for the institution identi-
fied in section 5505(j)(4)(F), as so in ef-
fect; and 
‘‘(iii) $2,000,000 for each of fiscal 
years 2004, 2005, and 2006 shall be avail-
315
able for the institution identified in section 
5505(j)(3)(E), as so in effect. 
‘‘(B) USE OF FUNDS.—Funds made avail-
able for each of the institutions identified in 
subparagraphs (A)(i) and (A)(ii) shall be used 
to make grants under section 5505(d) for those 
institutions. Funds made available for the insti-
tution identified in subparagraph (A)(iii) shall 
be used to make grants under 5506(f)(5) for 
that institution. 
‘‘(C) SPECIAL RULE.—Nothing in this sub-
section shall be construed to limit the transpor-
tation research conducted by the centers funded 
by this section. 
‘‘(f) ADMINISTRATION.—
‘‘(1) FISCAL YEAR 2004.—
‘‘(A) FROM TRUST FUND.—There shall be 
available from the Mass Transit Account of the 
Highway Trust Fund to carry out section 5334, 
$61,600,000 for fiscal year 2004. 
‘‘(B) FROM GENERAL FUND.—In addition 
to amounts made available under subparagraph 
(A), there are authorized to be appropriated to 
carry out section 5334, $15,400,000 for fiscal 
year 2004.
316
‘‘(2) FISCAL
YEARS
2005
THROUGH
2009.—
There are authorized to be appropriated to carry out 
section 5334—
‘‘(A) $81,000,000 for fiscal year 2005; 
‘‘(B) $84,000,000 for fiscal year 2006; 
‘‘(C) $87,000,000 for fiscal year 2007; 
‘‘(D) $90,000,000 for fiscal year 2008; 
and 
‘‘(E) $93,000,000 for fiscal year 2009. 
‘‘(g) GRANTS AS CONTRACTUAL OBLIGATIONS.—
‘‘(1) GRANTS FINANCED FROM HIGHWAY TRUST 
FUND.—A grant or contract approved by the Sec-
retary, that is financed with amounts made available 
under subsection (a)(l)(A), (a)(2), (b)(1)(A), (b)(2), 
(c)(2), (d)(1)(A), (e)(1)(A), or (f)(1)(A) is a contrac-
tual obligation of the Government to pay the Gov-
ernment’s share of the cost of the project. 
‘‘(2) 
GRANTS
FINANCED
FROM
GENERAL 
FUND.—A grant or contract, approved by the Sec-
retary, that is financed with amounts made available 
under subsection (a)(l)(B), (b)(1)(B), (b)(2)(B), 
(c)(1)(B), 
(d)(1)(B), 
(d)(2), 
(e)(1)(B), 
(e)(2), 
(f)(1)(B), or (f)(2) is a contractual obligation of the 
Government to pay the Government’s share of the
319
5301(f), 
5302(a)(7), 
5315, 
5323(a)(1), 
and 
5323(a)(1)(B). 
SEC. 3037. PROJECTS FOR NEW FIXED GUIDEWAY SYSTEMS 
AND EXTENSIONS TO EXISTING SYSTEMS. 
(a) EXISTING
FULL
FUNDING
GRANT
AGREE-
MENTS.—The following projects are authorized for final 
design and construction for existing full funding grant 
agreements: 
(1) Atlanta-North Springs Extension. 
(2) Baltimore-Central LRT Double Tracking. 
(3) Boston-South Boston Piers Transitway 
MOS-2. 
(4) Chicago-Chicago Transit Authority Douglas 
Branch Reconstruction. 
(5) Dallas-North Central LRT Extension. 
(6) Denver Southeast Corridor LRT. 
(7) Fort Lauderdale-Tri-Rail Commuter Rail 
Upgrade. 
(8) Los Angeles-North Hollywood MOS-3. 
(9) Memphis-Medical Center Extension. 
(10) Metra North Central Corridor Commuter 
Rail. 
(11) Metra Southwest Corridor Commuter Rail. 
(12) Metra Union-Pacific West Line Extension. 
(13) Minneapolis-Hiawatha Corridor LRT.
320
(14) New Jersey Urban Core-Hudson-Bergen 
LRT. 
(15) Newark Rail Link. 
(16) New Orleans-Canal Street. 
(17) Northern New Jersey—Hudson-Bergen 
LRT MOS-2. 
(18) Pittsburgh-Stage II LRT Reconstruction. 
(19) Portland-Interstate MAX LRT Extension. 
(20) Salt Lake City-CBD to University LRT. 
(21) Salt Lake City-Medical Center. 
(22) San Diego-Mission Valley East LRT Ex-
tension. 
(23) San Diego-Oceanside Escondido Rail Cor-
ridor. 
(24) San Francisco-BART Extension to San 
Francisco Airport. 
(25) San Juan-Tren Urbano. 
(26) Seattle-Central Link Initial Segment LRT. 
(27) St. Louis St. Clair-MetroLink Extension 
Phase IIa. 
(28) Washington DC/MD-Largo Metrorail Ex-
tension. 
(b) ALTERNATIVES ANALYSIS, PRELIMINARY ENGI-
NEERING, FINAL DESIGN, AND CONSTRUCTION.—The fol-
lowing projects are authorized for alternatives analysis,
321
preliminary engineering, final design, and construction for 
fiscal 
years 
2004 
through 
2009 
under 
section 
5309(m)(I)(B) of title 49, United States Code: [List to 
be supplied.] 
SEC. 3038. PROJECTS FOR BUS AND BUS-RELATED FACILI-
TIES. 
Of the amounts made available to carry out section 
5309(m)(1)(C) of title 49, United States Code, for each 
of fiscal years 2004 through 2006, the Secretary shall 
make funds available for the following projects in not less 
than the amounts specified for the fiscal year: [List to 
be supplied.] 
SEC. 3039. FUEL CELL BUS PROGRAM. 
[Reserved.] 
SEC. 3040. EXTENSION OF PUBLIC TRANSIT VEHICLE EX-
EMPTION 
FROM 
AXLE 
WEIGHT 
RESTRIC-
TIONS. 
Section 1023(h)(1) of the Intermodal Surface Trans-
portation Efficiency Act of 1991 (23 U.S.C. 127 note; 106 
Stat. 1552) is amended by striking ‘‘2003’’ and inserting 
‘‘2009’’.
SEC. 3041. HIGH-INTENSITY SMALL-URBANIZED AREA FOR-
MULA GRANT PROGRAM. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply:
322
(1) ELIGIBLE AREA.—The term ‘‘eligible area’’ 
means an urbanized area with a population of less 
than 200,000 that meets or exceeds in one or more 
performance categories the industry average for all 
urbanized areas with a population of at least 
200,000 but not more than 999,999, as determined 
by the Secretary in accordance with subsection 
(c)(2). 
(2) 
PERFORMANCE
CATEGORY.—The 
term 
‘‘performance category’’ means each of the following: 
(A) Passenger miles traveled per vehicle 
revenue mile. 
(B) Passenger miles traveled per vehicle 
revenue hour. 
(C) Vehicle revenue miles per capita. 
(D) Vehicle revenue hours per capita. 
(E) Passenger miles traveled per capita. 
(F) Passengers per capita. 
(b) GENERAL AUTHORITY.—In order to address the 
needs of small urbanized areas with unusually high levels 
of public transportation service, the Secretary shall make 
capital and operating grants under this section to eligible 
recipients described in subsection (d) for use in eligible 
areas. 
(c) APPORTIONMENT.—
323
(1) APPORTIONMENT FORMULA.—Funds made 
available for grants under this section in a fiscal 
year shall be apportioned among eligible areas in the 
ratio that—
(A) the number of performance categories 
for which each eligible area meets or exceeds 
the industry average in urbanized areas with a 
population of at least 200,000 but not more 
than 999,999; bears to 
(B) the aggregate number of performance 
categories for which all eligible areas meet or 
exceed the industry average in urbanized areas 
with a population of at least 200,000 but not 
more than 999,999. 
(2) DATA USED IN FORMULA.—The Secretary 
shall calculate apportionments under this subsection 
for a fiscal year using data from the national transit 
database used to calculate apportionments for that 
fiscal year under section 5336 of title 49, United 
States Code. 
(d) ELIGIBLE RECIPIENT.—Grant amounts appor-
tioned to an eligible area under this section shall be made 
available to a public transportation agency or other gov-
ernmental entity in the eligible area for obligation in the 
eligible area.
324
(e) GOVERNMENT’S SHARE OF COSTS.—
(1) CAPITAL GRANTS.—A grant for a capital 
project under this section (including associated cap-
ital maintenance items) shall be for 80 percent of 
the net capital costs of the project, as determined by 
the Secretary. The recipient may provide additional 
local matching amounts for such projects. 
(2) OPERATING GRANTS.—A grant under this 
section for operating assistance may not exceed 50 
percent of the net operating costs of the project, as 
determined by the Secretary. 
(3) REMAINDER.—The remainder of the net 
project costs may be provided from an undistributed 
cash surplus, a replacement or depreciation cash 
fund or reserve, or new capital. 
(f) PERIOD OF AVAILABILITY.—Funds apportioned 
under this section to an eligible area shall remain available 
for obligation in that eligible area for a period of 3 years 
after the last day of the fiscal year for which the funds 
are authorized. Any amounts so apportioned that remain 
unobligated at the end of that period shall be added to 
the amount that may be apportioned under this section 
in the next fiscal year. 
(g) APPLICATION OF OTHER SECTIONS.—Sections 
5302, 5318, 5323, 5332, 5333, and 5336(e) of title 49,
325
United States Code, apply to this section and to a grant 
made under this section. 
(h) FUNDING.—Of the amounts made available to 
carry out section 5307 of title 49, United States Code, 
$35,000,000 for fiscal year 2004, $38,000,000 for fiscal 
year 2005, $41,000,000 for fiscal year 2006, $44,000,000 
for fiscal year 2007, $47,000,000 for fiscal year 2008, and 
$50,000,000 for fiscal year 2009 shall be available to 
carry out this section. 
(i) TECHNICAL
AMENDMENTS.—Section 5336 is 
amended—
(1) in subsection (a) by striking ‘‘of this title’’ 
and inserting ‘‘to carry out section 5307’’; 
(2) in subsection (j) by striking ‘‘a grant made 
under’’ each place it appears and inserting ‘‘a grant 
made with funds apportioned under’’; and 
(3) in subsection (k)(1) by striking ‘‘section 
5302(a)(13) of this title’’ and inserting ‘‘section 
5302(a)’’. 
SEC. 3042. ALLOCATIONS FOR NATIONAL RESEARCH AND 
TECHNOLOGY PROGRAMS. 
(a) IN GENERAL.—Amounts appropriated pursuant 
to section 5338(d) of title 49, United States Code, for na-
tional research and technology programs under sections
326
5312, 5314, and 5322 of such title shall be allocated as 
follows: 
(1) SAFETY
AND
EMERGENCY
PREPARED-
NESS.—For carrying out safety and emergency pre-
paredness research activities consisting of technical 
assistance, training, and data analysis and reporting 
to improve public transportation system safety and 
security and emergency preparedness—
(A) $6,300,000 for fiscal year 2004; 
(B) $7,900,000 for fiscal year 2005; 
(C) $9,200,000 for fiscal year 2006; 
(D) $10,100,000 for fiscal year 2007; 
(E) $11,400,000 for fiscal year 2008; and 
(F) $12,750,000 for fiscal year 2009. 
(2) EQUIPMENT AND INFRASTRUCTURE.—For 
carrying out equipment and infrastructure research 
activities on public transportation and infrastructure 
technologies and methods and voluntary industry 
standards development—
(A) $5,200,000 for fiscal year 2004; 
(B) $6,500,000 for fiscal year 2005; 
(C) $7,700,000 for fiscal year 2006; 
(D) $8,400,000 for fiscal year 2007; 
(E) $9,500,000 for fiscal year 2008; and 
(F) $10,600,000 for fiscal year 2009.
327
(3) PUBLIC TRANSPORTATION OPERATIONS EF-
FICIENCY.—For carrying out public transportation 
operations efficiency research activities on high-per-
formance public transportation services and other in-
novations in fleet operations and maintenance—
(A) $4,200,000 for fiscal year 2004; 
(B) $5,300,000 for fiscal year 2005; 
(C) $6,100,000 for fiscal year 2006; 
(D) $6,700,000 for fiscal year 2007; 
(E) $7,600,000 for fiscal year 2008; and 
(F) $8,500,000 for fiscal year 2009. 
(4) ENERGY
INDEPENDENCE
AND
ENVIRON-
MENTAL
PROTECTION.—For carrying out energy 
independence and environmental protection research 
activities on improved public transportation energy 
use and propulsion systems and public transpor-
tation oriented development—
(A) $3,100,000 for fiscal year 2004; 
(B) $4,000,000 for fiscal year 2005; 
(C) $4,600,000 for fiscal year 2006; 
(D) $5,000,000 for fiscal year 2007; 
(E) $5,700,000 for fiscal year 2008; and 
(F) $6,400,000 for fiscal year 2009. 
(5) MOBILITY MANAGEMENT.—For carrying out 
research activities on mobility management, as de-
328
scribed in section 5302(a)(1) of title 49, United 
States Code—
(A) $6,300,000 for fiscal year 2004; 
(B) $7,900,000 for fiscal year 2005; 
(C) $9,200,000 for fiscal year 2006; 
(D) $10,100,000 for fiscal year 2007; 
(E) $11,400,000 for fiscal year 2008; and 
(F) $12,750,000 for fiscal year 2009. 
(6) PUBLIC TRANSPORTATION CAPACITY BUILD-
ING.—For carrying out public transportation capac-
ity building activities consisting of workforce and in-
dustry development, the International Mass Trans-
portation Program, and technology transfer and in-
dustry adoption activities—
(A) $2,100,000 for fiscal year 2004; 
(B) $2,600,000 for fiscal year 2005; 
(C) $3,100,000 for fiscal year 2006; 
(D) $3,400,000 for fiscal year 2007; 
(E) $3,800,000 for fiscal year 2008; and 
(F) $4,300,000 for fiscal year 2009. 
(7) STRATEGIC PLANNING AND PERFORMANCE 
MEASURES.—For carrying out strategic planning 
and performance measures consisting of policy and 
program development, research program planning
329
and performance, evaluation, and industry out-
reach—
(A) $3,100,000 for fiscal year 2004; 
(B) $4,000,000 for fiscal year 2005; 
(C) $4,600,000 for fiscal year 2006; 
(D) $5,000,000 for fiscal year 2007; 
(E) $5,700,000 for fiscal year 2008; and 
(F) $6,400,000 for fiscal year 2009. 
(b) REMAINDER.—After making allocations under 
subsection (a) of this section and section 5338(d)(2) of 
title 49, United States Code, the remainder of funds made 
available by section 5338(d)(2) of such title for national 
research and technology programs under sections 5312, 
5314, and 5322 for a fiscal year shall be allocated at the 
discretion of the Secretary to other transit research, devel-
opment, demonstration and deployment projects author-
ized by sections 5312, 5314 and 5322 of such title. 
SEC. 3043. OBLIGATION CEILING. 
Notwithstanding any other provision of law, the total 
of all obligations from amounts made available from the 
Mass Transit Account of the Highway Trust Fund by, and 
amounts appropriated under, subsections (a) through (f) 
of section 5338 of title 49, United States Code, shall not 
exceed—
(1) $8,200,000,000 for fiscal year 2004;
330
(2) $9,700,000,000 for fiscal year 2005; 
(3) $10,900,000,000 for fiscal year 2006; 
(4) $12,200,000,000 for fiscal year 2007; 
(5) $13,400,000,000 for fiscal year 2008; and 
(6) $14,800,000,000 for fiscal year 2009. 
SEC. 3044. ADJUSTMENTS FOR THE SURFACE TRANSPOR-
TATION EXTENSION ACT OF 2003. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary shall ensure that the total ap-
portionments and allocations made to a designated grant 
recipient under section 5338 of title 49, United States 
Code, for fiscal year 2004 shall be reduced by the amount 
apportioned to such designated recipient pursuant to sec-
tion 8 of the Surface Transportation Extension Act of 
2003 (117 Stat. 1121). 
(b) FIXED GUIDEWAY MODERNIZATION ADJUST-
MENT.—In making the apportionments described in sub-
section (a), the Secretary shall adjust the amount appor-
tioned to each urbanized area for fixed guideway mod-
ernization for fiscal year 2004 to reflect the method for 
apportioning funds in section 5337(a) of title 49, United 
States Code.
331
TITLE IV—MOTOR CARRIER 
SAFETY 
SEC. 4001. AUTHORIZATION OF APPROPRIATIONS. 
(a) ADMINISTRATIVE EXPENSES.—Section 31104 of 
title 49, United States Code, is amended by adding the 
following at the end: 
‘‘(i) ADMINISTRATIVE EXPENSES.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated from the 
Highway Trust Fund (other than the Mass Transit 
Account) for the Secretary of Transportation to pay 
administrative expenses of the Federal Motor Car-
rier Safety Administration—
‘‘(A) $235,000,000 for fiscal year 2004; 
‘‘(B) $244,000,000 for fiscal year 2005; 
‘‘(C) $252,000,000 for fiscal year 2006; 
‘‘(D) $261,000,000 for fiscal year 2007; 
‘‘(E) $269,000,000 for fiscal year 2008; 
and 
‘‘(F) $279,000,000 for fiscal year 2009. 
‘‘(2) USE OF FUNDS.—The funds authorized by 
this subsection shall be used for personnel costs; ad-
ministrative infrastructure; rent; information tech-
nology; programs for research and technology, infor-
mation management, regulatory development (in-
332
cluding a medical review board), the administration 
of the performance and registration information sys-
tem management, and outreach and education; other 
operating expenses; and such other expenses as may 
from time to time become necessary to implement 
statutory mandates of the Administration not fund-
ed from other sources. 
‘‘(3) PERIOD OF AVAILABILITY.—The amounts 
made available under this section shall remain avail-
able until expended. 
‘‘(4) INITIAL DATE OF AVAILABILITY.—Author-
izations from the Highway Trust Fund (other than 
the Mass Transit Account) to carry out subtitle IV, 
part B, and subtitle VI, part B, of this title, or the 
provisions of title IV of the Transportation Equity 
Act: A Legacy for Users, shall be available for obli-
gation on the date of their apportionment or alloca-
tion or on October 1 of the fiscal year for which they 
are authorized, whichever occurs first. 
‘‘(5) CONTRACT AUTHORITY.—Approval by the 
Secretary of a grant with funds made available 
under paragraph (4) imposes upon the United 
States a contractual obligation for payment of the 
Government’s share of costs incurred in carrying out 
the objectives of the grant.’’.
333
(b) GRANT PROGRAMS.—There are authorized to be 
appropriated from the Highway Trust Fund (other than 
the Mass Transit Account) the following sums for the fol-
lowing Federal Motor Carrier Safety Administration pro-
grams: 
(1) For commercial driver’s license program im-
provement grants under section 31313 of title 49, 
United States Code—
(A) $22,000,000 for fiscal year 2004; 
(B) $22,000,000 for fiscal year 2005; 
(C) $23,000,000 for fiscal year 2006; 
(D) $23,000,000 for fiscal year 2007; 
(E) $24,000,000 for fiscal year 2008; and 
(F) $25,000,000 for fiscal year 2009. 
(2) For border enforcement grants under sec-
tion 31107 of such title—
(A) $32,000,000 for fiscal year 2004; 
(B) $33,000,000 for fiscal year 2005; 
(C) $33,000,000 for fiscal year 2006; 
(D) $34,000,000 for fiscal year 2007; 
(E) $35,000,000 for fiscal year 2008; and 
(F) $36,000,000 for fiscal year 2009. 
(3) For the performance and registration infor-
mation system management grant program under 
section 31109 of such title—
334
(A) $4,000,000 for fiscal year 2004; 
(B) $4,000,000 for fiscal year 2005; 
(C) $4,000,000 for fiscal year 2006; 
(D) $4,000,000 for fiscal year 2007; 
(E) $4,000,000 for fiscal year 2008; and 
(F) $4,000,000 for fiscal year 2009.
(4) COMMERCIAL VEHICLE INFORMATION SYS-
TEMS AND NETWORKS DEPLOYMENT.—For carrying 
out the commercial vehicle information systems and 
networks deployment program under section 4009 of 
this Act, $25,000,000 for each of fiscal years 2004 
through 2009. 
(c) PERIOD OF AVAILABILITY.—The amounts made 
available under subsection (b) of this section shall remain 
available until expended. 
(d) INITIAL DATE OF AVAILABILITY.—Amounts au-
thorized to be appropriated from the Highway Trust Fund 
(other than the Mass Transit Account) by subsection (b) 
shall be available for obligation on the date of their appor-
tionment or allocation or on October 1 of the fiscal year 
for which they are authorized, whichever occurs first. 
(e) CONTRACT AUTHORITY.—Approval by the Sec-
retary of a grant with funds made available under sub-
section (b) imposes upon the United States a contractual
335
obligation for payment of the Government’s share of costs 
incurred in carrying out the objectives of the grant. 
SEC. 4002. MOTOR CARRIER SAFETY GRANTS. 
(a) STATE PLAN CONTENTS.—Section 31102(b)(1) 
of title 49, United States Code, is amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) implements performance-based activities, 
including deployment of technology to enhance the 
efficiency and effectiveness of commercial motor ve-
hicle safety programs;’’; 
(2) by striking subparagraph (Q) and inserting 
the following: 
‘‘(Q) provides that the State has established a 
program to ensure accurate, complete, and timely 
motor carrier safety data is collected and reported to 
the Secretary and includes a procedure to allow nec-
essary corrections of incorrect data;’’; 
(3) by aligning subparagraph (R) with subpara-
graph (S); 
(4) by striking ‘‘and’’ at the end of subpara-
graph (S); 
(5) by striking the period at the end of sub-
paragraph (T) and inserting a semicolon; and 
(6) by adding at the end the following:
337
‘‘(c) USE OF GRANTS TO ENFORCE OTHER LAWS.—
A State may use amounts received under a grant under 
subsection (a)—
‘‘(1) for the following activities if the activities 
are carried out in conjunction with an appropriate 
inspection of the commercial motor vehicle to enforce 
Government or State commercial motor vehicle safe-
ty regulations: 
‘‘(A) enforcement of commercial motor ve-
hicle size and weight limitations at locations 
other than fixed weight facilities, at specific lo-
cations such as steep grades or mountainous 
terrains where the weight of a commercial 
motor vehicle can significantly affect the safe 
operation of the vehicle, or at ports where inter-
modal shipping containers enter and leave the 
United States; and 
‘‘(B) detection of the unlawful presence of 
a controlled substance (as defined under section 
102 of the Comprehensive Drug Abuse Preven-
tion and Control Act of 1970 (21 U.S.C. 802)) 
in a commercial motor vehicle or on the person 
of any occupant (including the operator) of the 
vehicle; and
338
‘‘(2) for documented enforcement of State traf-
fic laws and regulations designed to promote the 
safe operation of commercial motor vehicles, includ-
ing documented enforcement of such laws and regu-
lations relating to noncommercial motor vehicles 
when necessary to promote the safe operation of 
commercial motor vehicles if the number of roadside 
safety inspections conducted in the State is main-
tained at a level at least equal to the average num-
ber conducted in the State in fiscal years 2001, 
2002, and 2003; except that the State may not use 
more than 5 percent of the aggregate amount the 
State receives under the grant under subsection (a) 
for enforcement activities relating to noncommercial 
motor vehicles described in this paragraph.’’; and 
(2) by adding at the end the following: 
‘‘(e) ANNUAL REPORT.—The Secretary shall submit 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Commerce, Science and Transportation of the Senate an 
annual report that describes the effect of activities carried 
out with funds from grants made under this section on 
commercial motor vehicle safety.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
31104(a) of such title is amended to read as follows:
339
‘‘(a) IN GENERAL.—Subject to subsection (f), there 
are authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
section 31102—
‘‘(1) $182,000,000 for fiscal year 2004; 
‘‘(2) $187,000,000 for fiscal year 2005; 
‘‘(3) $193,000,000 for fiscal year 2006; 
‘‘(4) $198,000,000 for fiscal year 2007; 
‘‘(5) $204,000,000 for fiscal year 2008; and 
‘‘(6) $210,000,000 for fiscal year 2009.’’. 
(d) NEW ENTRANT AUDITS.—Section 31104(f) of 
such title is amended—
(1) in paragraph (1) by striking ‘‘deduction 
under subsection (e)’’ and inserting ‘‘deductions 
under subsection (e) and paragraphs (2) and (3)’’;
(2) the first sentence of paragraph (2)(A)—
(A) by striking ‘‘or’’; and 
(B) by inserting after ‘‘technologies’’ the 
following: ‘‘, or improve the quality and accu-
racy of data provided by the State’’; 
(3) in paragraph (2)—
(A) by striking ‘‘AND
BORDER
ACTIVI-
TIES.—’’ and all that follows through ‘‘5 per-
cent’’ and inserting ‘‘ACTIVITIES.—The Sec-
retary may designate up to 10 percent’’; and
340
(B) by striking subparagraph (B); and 
(4) by adding at the end the following: 
‘‘(3) NEW
ENTRANT
AUDITS.—The Secretary 
may deduct up to $17,000,000 of the amounts avail-
able under subsection (a) for a fiscal year for audits 
of new entrant motor carriers under section 
31144(g).’’. 
(e) TECHNICAL AMENDMENT.—Section 31102(b) of 
such title is amended by striking ‘‘(1)(D)’’ and inserting 
‘‘(1)(E)’’.
SEC. 4003. BORDER ENFORCEMENT GRANTS. 
(a) IN GENERAL.—Chapter 311 of title 49, United 
States Code, is amended—
(1) by striking 
‘‘SUBCHAPTER I—STATE GRANTS AND OTHER 
COMMERCIAL MOTOR VEHICLE PROGRAMS’’
and inserting the following: 
‘‘SUBCHAPTER I—GENERAL AUTHORITY AND 
STATE GRANTS’’ 
; and 
(2) by striking section 31107 and inserting the 
following: 
‘‘§ 31107. Border enforcement grants 
‘‘(a) GENERAL
AUTHORITY.—The Secretary of 
Transportation may make a grant in a fiscal year to a
341
State that shares a land border with another country for 
carrying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects. 
‘‘(b) MAINTENANCE OF EXPENDITURES.—The Sec-
retary may make a grant to a State under this section 
only if the State agrees that the total expenditure of 
amounts of the State and political subdivisions of the 
State, exclusive of amounts from the United States, for 
carrying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects will 
be maintained at a level at least equal to the average level 
of that expenditure by the State and political subdivisions 
of the State for the last 2 fiscal years of the State ending 
before the date of enactment of the Transportation Equity 
Act: A Legacy for Users. 
‘‘(c) GOVERNMENTS SHARE OF COSTS.—The Sec-
retary shall reimburse a State under a grant made under 
this section an amount that is not more than 100 percent 
of the costs incurred by the State in a fiscal year for car-
rying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects. 
‘‘(d) 
AVAILABILITY
AND
REALLOCATION
OF 
AMOUNTS.—Allocations to a State remain available for ex-
penditure in the State for the fiscal year in which they 
are allocated and for the next fiscal year. Amounts not
342
expended by a State during those 2 fiscal years are avail-
able to the Secretary for reallocation under this section.’’. 
(b) CONFORMING AMENDMENTS.—The analysis for 
such chapter is amended—
(1) by striking
‘‘SUBCHAPTER I—STATE GRANTS AND OTHER COMMERCIAL 
MOTOR VEHICLE PROGRAMS’’
and inserting the following:
‘‘SUBCHAPTER I—GENERAL AUTHORITY AND STATE GRANTS’’
; and
(2) by striking the item relating to section 
31107 and inserting the following:
‘‘31107. Border enforcement grants.’’.
SEC. 4004. COMMERCIAL DRIVER’S LICENSE IMPROVE-
MENTS. 
(a) STATE GRANTS.—Chapter 313 of title 49, United 
States Code, is amended by inserting after section 31312 
the following: 
‘‘§ 31313. Grants for commercial driver’s license pro-
gram improvements 
‘‘(a) GRANTS FOR COMMERCIAL DRIVER’S LICENSE 
PROGRAM IMPROVEMENTS.—
‘‘(1) GENERAL AUTHORITY.—The Secretary of 
Transportation may make a grant to a State in a 
fiscal year—
343
‘‘(A) to comply with the requirements of 
section 31311; and 
‘‘(B) in the case of a State that is in sub-
stantial compliance with the requirements of 
section 31311 and this section, to improve its 
implementation of its commercial driver’s li-
cense program. 
‘‘(2) PURPOSES FOR WHICH GRANTS MAY BE 
USED.—A State may use grants under paragraphs 
(1)(A) and (1)(B) only for expenses directly related 
to its compliance with section 31311; except that a 
grant under paragraph (1)(B) may be used for im-
proving implementation of the State’s commercial 
driver’s license program, including expenses for com-
puter hardware and software, publications, testing, 
personnel, training, and quality control. The grant 
may not be used to rent, lease, or buy land or build-
ings. 
‘‘(3) APPLICATION.—In order to receive a grant 
under this section, a State must submit an applica-
tion for such grant that is in such form, and con-
tains such information, as the Secretary may re-
quire. The application shall include the State’s as-
sessment of its commercial drivers license program.
344
‘‘(4) MAINTENANCE OF EXPENDITURES.—The 
Secretary may make a grant to a State under this 
subsection only if the State agrees that the total ex-
penditure of amounts of the State and political sub-
divisions of the State, exclusive of amounts from the 
United States, for the State’s commercial driver’s li-
cense program will be maintained at a level at least 
equal to the average level of that expenditure by the 
State and political subdivisions of the State for the 
last 2 fiscal years of the State ending before the 
date of enactment of the Transportation Equity Act: 
A Legacy for Users. 
‘‘(5) GOVERNMENT
SHARE.—The Secretary 
shall reimburse a State under a grant made under 
this subsection an amount that is not more than 80 
percent of the costs incurred by the State in a fiscal 
year in complying with section 31311 and improving 
its implementation of its commercial driver’s license 
program. In determining such costs, the Secretary 
shall include in-kind contributions by the State. 
Amounts required to be expended by the State under 
paragraph (4) may not be included as part of the 
non-Federal share of such costs. 
‘‘(b) HIGH-PRIORITY ACTIVITIES.—
345
‘‘(1) GRANTS FOR NATIONAL CONCERNS.—The 
Secretary may make a grant to a State agency, local 
government, or other person for 100 percent of the 
costs 
of 
research, 
development, 
demonstration 
projects, public education, and other special activi-
ties and projects relating to commercial driver li-
censing and motor vehicle safety that are of benefit 
to all jurisdictions of the United States or are de-
signed to address national safety concerns and cir-
cumstances. 
‘‘(2) FUNDING.—The Secretary may deduct up 
to 10 percent of the amounts made available to 
carry out this section for a fiscal year to make 
grants under this subsection.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by inserting after the item relat-
ing to section 31312 the following:
‘‘31313. Grants for commercial driver’s license program improvements.’’.
(c) AMOUNTS WITHHELD.—Subsections (a) and (b) 
of section 31314 of such title are each amended by insert-
ing ‘‘up to’’ after ‘‘withhold’’. 
SEC. 4005. HOBBS ACT. 
(a) JURISDICTION
OF COURT
OF APPEALS OVER 
COMMERCIAL MOTOR VEHICLE SAFETY REGULATION 
AND OPERATORS AND MOTOR CARRIER SAFETY.—Section 
2342(3)(A) of title 28, United States Code, is amended
346
by inserting before ‘‘of title 49’’ the following: ‘‘, sub-
chapter III of chapter 311, chapter 313, or chapter 315’’. 
(b) JUDICIAL REVIEW.—Section 351(a) of title 49, 
United States Code, is amended by striking ‘‘Federal 
Highway Administration’’ and inserting ‘‘Federal Motor 
Carrier Safety Administration’’. 
(c) AUTHORITY TO CARRY OUT CERTAIN TRANS-
FERRED DUTIES AND POWERS.—Section 352 of title 49, 
United States Code, is amended by striking ‘‘Federal 
Highway Administration’’ and inserting ‘‘Federal Motor 
Carrier Safety Administration’’. 
SEC. 4006. PENALTY FOR DENIAL OF ACCESS TO RECORDS. 
Section 521(b) of title 49, United States Code, is 
amended—
(1) by striking ‘‘(b)(1)(A) If the Secretary’’ and 
inserting the following: 
‘‘(b) 
VIOLATIONS
RELATING
TO
COMMERCIAL 
MOTOR VEHICLE SAFETY REGULATION
AND OPERA-
TORS.—
‘‘(1) NOTICE.—
‘‘(A) IN GENERAL.—If the Secretary’’; and 
(2) by adding at the end of paragraph (2) the 
following: 
‘‘(E) COPYING OF RECORDS AND ACCESS 
TO
EQUIPMENT, LANDS, AND
BUILDINGS.—A
347
person subject to chapter 51 or part B of sub-
title VI who fails to allow the Secretary, or an 
employee designated by the Secretary, promptly 
upon demand to inspect and copy any record or 
inspect and examine equipment, lands, build-
ings, and other property in accordance with sec-
tion 504(c), 5121(c), or 14122(b) shall be liable 
to the United States for a civil penalty not to 
exceed $1,000 for each offense. Each day the 
Secretary is denied the right to inspect and 
copy any record or inspect and examine equip-
ment, lands, buildings, and other property shall 
constitute a separate offense; except that the 
total of all civil penalties against any violator 
for all offenses related to a single violation shall 
not exceed $10,000. It shall be a defense to 
such penalty that the records did not exist at 
the time of the Secretary’s request or could not 
be timely produced without unreasonable ex-
pense or effort. Nothing in this subparagraph 
shall be construed as amending or superseding 
any remedy available to the Secretary under 
section 502(d), section 507(c), or any other 
provision of this title.’’.
348
SEC. 4007. MEDICAL REVIEW BOARD. 
Section 113 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(j) MEDICAL REVIEW BOARD.—
‘‘(1) ESTABLISHMENT
AND
FUNCTION.—The 
Administrator shall establish a Medical Review 
Board as an advisory committee to provide the Ad-
ministration with medical advice and recommenda-
tions on driver qualification medical standards and 
guidelines, medical examiner education, and medical 
research. 
‘‘(2) 
COMPOSITION.—The 
Medical 
Review 
Board shall consist of 5 members appointed for a 
term not to exceed 3 years by the Secretary from 
medical institutions and private medical practice. 
The membership shall reflect expertise in a variety 
of medical specialties relevant to the functions of the 
Administration.’’. 
SEC. 4008. INCREASED PENALTIES FOR OUT-OF-SERVICE 
VIOLATIONS AND FALSE RECORDS. 
(a) RECORDKEEPING
AND
REPORTING
VIOLA-
TIONS.—Section 521(b)(2)(B) of title 49, United States 
Code, is amended—
(1) in clause (i) by striking ‘‘$500’’ and insert-
ing ‘‘$1,000’’; and
349
(2) by striking ‘‘$5,000’’ each place it appears 
and inserting ‘‘$10,000’’. 
(b) VIOLATIONS OF OUT-OF-SERVICE ORDERS.—Sec-
tion 31310(i)(2) of title 49, United States Code, is amend-
ed—
(1) by striking ‘‘Not later than December 18, 
1992, the’’ and inserting ‘‘The’’; 
(2) in subparagraph (A)—
(A) by striking ‘‘90 days’’ and inserting 
‘‘180 days’’; and 
(B) by striking ‘‘$1,000’’ and inserting 
‘‘$2,500’’; 
(3) in subparagraph (B)—
(A) by striking ‘‘one year’’ and inserting 
‘‘2 years’’; and 
(B) by striking ‘‘$1,000; and’’ and insert-
ing ‘‘$5,000;’’; 
(4) in subparagraph (C) by striking ‘‘$10,000.’’ 
and inserting ‘‘$25,000; and’’; and 
(5) by adding at the end the following: 
‘‘(D) an employer that knowingly and will-
fully allows or requires an employee to operate 
a commercial motor vehicle in violation of an 
out-of-service order shall, upon conviction, be 
subject for each offense to imprisonment for a
350
term not to exceed one year or a fine under title 
18, or both.’’. 
SEC. 4009. COMMERCIAL VEHICLE INFORMATION SYSTEMS 
AND NETWORKS DEPLOYMENT. 
(a) IN GENERAL.—The Secretary shall carry out a 
commercial vehicle information systems and networks pro-
gram to—
(1) improve the safety and productivity of com-
mercial vehicles and drivers; and 
(2) reduce costs associated with commercial ve-
hicle operations and Federal and State commercial 
vehicle regulatory requirements. 
(b) PURPOSE.—The program shall advance the tech-
nological capability and promote the deployment of intel-
ligent transportation system applications for commercial 
motor vehicle operations, commercial driver, and carrier-
specific information systems and networks. 
(c) CORE DEPLOYMENT GRANTS.—
(1) IN GENERAL.—The Secretary shall make 
grants to eligible States for the core deployment of 
commercial vehicle information systems and net-
works. 
(2) AMOUNT OF GRANTS.—The maximum ag-
gregate amount the Secretary may grant to a State 
for the core deployment of commercial vehicle infor-
351
mation systems and networks under this subsection 
and sections 5001(a)(5) and 5001(a)(6) of the 
Transportation Equity Act for the 21st Century 
(112 Stat. 420) may not exceed $2,500,000. 
(3) USE
OF
FUNDS.—Funds from a grant 
under this subsection may only be used for the core 
deployment of commercial vehicle information sys-
tems and networks. An eligible State that has either 
completed the core deployment of commercial vehicle 
information systems and networks or completed such 
deployment before grant funds are expended under 
this subsection may use the grant funds for the ex-
panded deployment of commercial vehicle informa-
tion systems and networks in the State. 
(d) EXPANDED DEPLOYMENT GRANTS.—
(1) IN GENERAL.—For each fiscal year, from 
the funds remaining after the Secretary has made 
grants under subsection (c), the Secretary may make 
grants to each eligible State, upon request, for the 
expanded deployment of commercial vehicle informa-
tion systems and networks. 
(2) ELIGIBILITY.—Each State that has com-
pleted the core deployment of commercial vehicle in-
formation systems and networks in such State is eli-
352
gible for an expanded deployment grant under this 
subsection. 
(3) AMOUNT OF GRANTS.—Each fiscal year, the 
Secretary may distribute funds available for ex-
panded deployment grants equally among the eligible 
States, but not to exceed $1,000,000 per State. 
(4) USE OF FUNDS.—A State may use funds 
from a grant under this subsection only for the ex-
panded deployment of commercial vehicle informa-
tion systems and networks. 
(e) ELIGIBILITY.— To be eligible for a grant under 
this section, a State—
(1) shall have a commercial vehicle information 
systems and networks program plan approved by the 
Secretary that describes the various systems and 
networks at the State level that need to be refined, 
revised, upgraded, or built to accomplish deployment 
of core capabilities; 
(2) shall certify to the Secretary that its com-
mercial vehicle information systems and networks 
deployment activities, including hardware procure-
ment, software and system development, and infra-
structure modifications—
(A) are consistent with the national intel-
ligent transportation systems and commercial
353
vehicle information systems and networks archi-
tectures and available standards; and 
(B) promote interoperability and efficiency 
to the extent practicable; and 
(3) shall agree to execute interoperability tests 
developed by the Federal Motor Carrier Safety Ad-
ministration to verify that its systems conform with 
the national intelligent transportation systems archi-
tecture, applicable standards, and protocols for com-
mercial vehicle information systems and networks. 
(f) FEDERAL SHARE.—The Federal share of the cost 
of a project payable from funds made available to carry 
out this section shall not exceed 50 percent. The total Fed-
eral share of the cost of a project payable from all eligible 
sources shall not exceed 80 percent. 
(g) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) COMMERCIAL VEHICLE INFORMATION SYS-
TEMS AND NETWORKS.—The term ‘‘commercial ve-
hicle information systems and networks’’ means the 
information systems and communications networks 
that provide the capability to— 
(A) improve the safety of commercial 
motor vehicle operations;
354
(B) increase the efficiency of regulatory in-
spection processes to reduce administrative bur-
dens by advancing technology to facilitate in-
spections and increase the effectiveness of en-
forcement efforts; 
(C) advance electronic processing of reg-
istration information, driver licensing informa-
tion, fuel tax information, inspection and crash 
data, and other safety information; 
(D) enhance the safe passage of commer-
cial motor vehicles across the United States and 
across international borders; and 
(E) promote the communication of infor-
mation among the States and encourage 
multistate cooperation and corridor develop-
ment. 
(2) 
COMMERCIAL
MOTOR
VEHICLE
OPER-
ATIONS.—The term ‘‘commercial motor vehicle oper-
ations’’— 
(A) means motor carrier operations and 
motor vehicle regulatory activities associated 
with the commercial motor vehicle movement of 
goods, including hazardous materials, and pas-
sengers; and
355
(B) with respect to the public sector, in-
cludes the issuance of operating credentials, the 
administration of motor vehicle and fuel taxes, 
and roadside safety and border crossing inspec-
tion and regulatory compliance operations. 
(3) CORE DEPLOYMENT.—The term ‘‘core de-
ployment’’ means the deployment of systems in a 
State necessary to provide the State with the fol-
lowing capabilities: 
(A) Safety information exchange to—
(i) electronically collect and transmit 
commercial motor vehicle and driver in-
spection data at a majority of inspection 
sites in the State; 
(ii) connect to the safety and fitness 
electronic records system for access to 
interstate carrier and commercial motor 
vehicle data, summaries of past safety per-
formance, and commercial motor vehicle 
credentials information; and 
(iii) exchange carrier data and com-
mercial motor vehicle safety and creden-
tials information within the State and con-
nect to such system for access to interstate 
carrier and commercial motor vehicle data.
356
(B) Interstate credentials administration 
to— 
(i) perform end-to-end processing, in-
cluding carrier application, jurisdiction ap-
plication 
processing, 
and 
credential 
issuance, of at least the international reg-
istration plan and international fuel tax 
agreement credentials and extend this 
processing to other credentials, including 
intrastate registration, vehicle titling, over-
size vehicle permits, overweight vehicle per-
mits, carrier registration, and hazardous 
materials permits; 
(ii) connect to such plan and agree-
ment clearinghouses; and 
(iii) have at least 10 percent of the 
credentialing transaction volume in the 
State handled electronically and have the 
capability to add more carriers and to ex-
tend to branch offices where applicable. 
(C) Roadside electronic screening to elec-
tronically screen transponder-equipped commer-
cial vehicles at a minimum of one fixed or mo-
bile inspection site in the State and to replicate 
this screening at other sites in the State.
357
(4) EXPANDED DEPLOYMENT.—The term ‘‘ex-
panded deployment’’ means the deployment of sys-
tems in a State that exceed the requirements of a 
core deployment of commercial vehicle information 
systems and networks, improve safety and the pro-
ductivity of commercial motor vehicle operations, 
and enhance transportation security. 
(h) REPEAL.—Section 5209 of the Transportation 
Equity Act for the 21st Century (23 U.S.C. 502 note; 112 
Stat. 460–461) is repealed. 
SEC. 4010. SAFETY FITNESS. 
(a) IN GENERAL.—Subsection (a) of section 31144 
of title 49, United States Code, is amended to read as 
follows: 
‘‘(a) IN GENERAL.—The Secretary shall—
‘‘(1) determine whether an owner or operator is 
fit to operate safely commercial motor vehicles, uti-
lizing among other things the accident record of an 
owner or operator operating in interstate commerce 
and the accident record and safety inspection record 
of such owner or operator in operations that affect 
interstate commerce; 
‘‘(2) periodically update such safety fitness de-
terminations;
358
‘‘(3) make such final safety fitness determina-
tions readily available to the public; and 
‘‘(4) prescribe by regulation penalties for viola-
tions of this section consistent with section 521.’’. 
(b) PROHIBITED TRANSPORTATION.—The first sub-
section (c) of such section 31144 is amended by adding 
at the end the following: 
‘‘(5) 
TRANSPORTATION
AFFECTING
INTER-
STATE COMMERCE.—Owners or operators of com-
mercial motor vehicles prohibited from operating in 
interstate commerce pursuant to paragraphs (1) 
through (3) may not operate any commercial motor 
vehicle that affects interstate commerce until the 
Secretary determines that such owner or operator is 
fit.’’. 
(c) DETERMINATION OF UNFITNESS BY A STATE.—
Such section 31144 is further amended—
(1) by redesignating subsections (d), (e), and 
the second subsection (c) as subsections (e), (f), and 
(g), respectively; 
(2) by inserting after the first subsection (c) 
the following: 
‘‘(d) DETERMINATION OF UNFITNESS BY A STATE.—
If a State that receives a grant under section 31102 deter-
mines, by applying the standards prescribed by the Sec-
359
retary under subsection (b), that an owner or operator of 
commercial motor vehicles that has its principal place of 
business in that State and operates in intrastate com-
merce is unfit under such standards and prohibits the 
owner or operator from operating such vehicles in the 
State, the Secretary shall prohibit the owner or operator 
from operating such vehicles in interstate commerce until 
the State determines that the owner or operator is fit.’’; 
and 
(3) in subsection (g) (as redesignated by para-
graph (1) of this subsection) by adding at the end 
the following: 
‘‘(5) GRANTS FOR AUDITS.—From amounts de-
ducted under section 31104(f)(3), the Secretary may 
make grants to States and local governments for 
new entrant motor carrier audits under this sub-
section without requiring a matching contribution 
from such States or local governments. 
‘‘(6) DOT AUDITS.—If the Secretary deter-
mines that a State or local government is unable to 
use government employees to conduct new entrant 
motor carrier audits, the Secretary may utilize the 
funds deducted under section 31104(f)(3) to conduct 
such audits in areas under the jurisdiction of such 
State or local government.’’.
360
SEC. 4011. PATTERN OF SAFETY VIOLATIONS BY MOTOR 
CARRIER OR BROKER MANAGEMENT. 
(a) DUTIES OF EMPLOYERS AND EMPLOYEES.—Sec-
tion 31135 of title 49, United States Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Each’’; and 
(2) by adding at the end the following: 
‘‘(b) PATTERN OF NONCOMPLIANCE.—If an officer of 
a motor carrier or broker engages in a pattern or practice 
of avoiding compliance, or masking or otherwise con-
cealing noncompliance, with regulations prescribed under 
this chapter, the Secretary may suspend, amend, or revoke 
any part of the registration of the motor carrier or broker 
under section 13905. 
‘‘(c) LIST OF PROPOSED OFFICERS.—Each person 
seeking registration as a motor carrier under section 
13902 or as a broker under section 13904 shall submit 
a list of the proposed officers of the motor carrier or 
broker. If the Secretary determines that any of the pro-
posed officers has previously engaged in a pattern or prac-
tice of avoiding compliance, or masking or otherwise con-
cealing noncompliance, with regulations prescribed under 
this chapter, the Secretary may deny the person’s applica-
tion for registration as a motor carrier under section 
13902(a)(3) or as a broker under section 13904(a).
361
‘‘(d) REGULATIONS.—The Secretary shall by regula-
tion establish standards to implement subsections (b) and 
(c) and a procedure to allow a person who is denied reg-
istration under subsection (c) or whose registration is sus-
pended, amended, or revoked under subsection (b) to rem-
edy the pattern or practice that results in the denial, sus-
pension, amendment, or revocation. 
‘‘(e) DEFINITIONS.—In this section, the following 
definitions shall apply: 
‘‘(1) MOTOR
CARRIER
AND
BROKER.—The 
terms ‘motor carrier’ and ‘broker’ have the meanings 
such terms have under section 13102. 
‘‘(2) OFFICER.—The term ‘officer’ means an 
owner, chief executive officer, chief operating officer, 
chief financial officer, safety director, vehicle mainte-
nance supervisor, and driver supervisor of a motor 
carrier, regardless of the title attached to those 
functions.’’. 
(b) 
MOTOR
CARRIER
REGISTRATION.—Section 
13902(a)(1)(B) of such title is amended to read as follows: 
‘‘(B)(i) any safety regulations imposed by 
the Secretary; 
‘‘(ii) the duties of employers and employees 
established by the Secretary under section 
31135; and
362
‘‘(iii) the safety fitness requirements estab-
lished by the Secretary under section 31144; 
and’’.
SEC. 4012. MOTOR CARRIER RESEARCH AND TECHNOLOGY 
PROGRAM. 
(a) IN GENERAL.—Section 31108 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 31108. Motor carrier research and technology pro-
gram 
‘‘(a) RESEARCH, TECHNOLOGY, AND TECHNOLOGY 
TRANSFER ACTIVITIES.—
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Transportation shall establish and carry out a motor 
carrier research and technology program. 
‘‘(2) MULTI-YEAR PLAN.—The program must 
include a multi-year research plan that focuses on 
nonredundant innovative research. 
‘‘(3) RESEARCH, DEVELOPMENT, AND
TECH-
NOLOGY TRANSFER ACTIVITIES.—The Secretary may 
carry out under the program research, development, 
technology, and technology transfer activities with 
respect to—
‘‘(A) the causes of accidents, injuries, and 
fatalities involving commercial motor vehicles;
363
‘‘(B) means of reducing the number and 
severity of accidents, injuries, and fatalities in-
volving commercial motor vehicles; 
‘‘(C) improving commercial motor vehicle 
and motor carrier safety, and industry effi-
ciency, through technological improvement; 
‘‘(D) improving technology used by en-
forcement officers when conducting roadside in-
spections and compliance reviews to increase ef-
ficiency and information transfers; and 
‘‘(E) increasing the safety and security of 
hazardous materials transportation. 
‘‘(4) TESTS
AND
DEVELOPMENT.—The Sec-
retary may test, develop, or assist in testing and de-
veloping any material, invention, patented article, or 
process related to the research and technology pro-
gram. 
‘‘(5) TRAINING.—The Secretary may use the 
funds made available to carry out this section for 
training or education of commercial motor vehicle 
safety personnel, including training in accident re-
construction and detection of controlled substances 
or other contraband and stolen cargo or vehicles. 
‘‘(6) PROCEDURES.—The Secretary may carry 
out this section—
364
‘‘(A) independently; 
‘‘(B) in cooperation with other Federal de-
partments, agencies, and instrumentalities and 
Federal laboratories; or 
‘‘(C) by making grants to, or entering into 
contracts, cooperative agreements, and other 
transactions with, any Federal laboratory, State 
agency, authority, association, institution, for-
profit or nonprofit corporation, organization, 
foreign country, or person. 
‘‘(7) DEVELOPMENT AND PROMOTION OF USE 
OF PRODUCTS.—The Secretary shall use funds made 
available to carry out this section to develop, admin-
ister, communicate, and promote the use of products 
of research, technology, and technology transfer pro-
grams under this section. 
‘‘(b) COLLABORATIVE RESEARCH
AND DEVELOP-
MENT.—
‘‘(1) IN GENERAL.—To advance innovative solu-
tions to problems involving commercial motor vehicle 
and motor carrier safety, security, and efficiency, 
and to stimulate the deployment of emerging tech-
nology, the Secretary may carry out, on a cost-
shared basis, collaborative research and development 
with—
365
‘‘(A) non-Federal entities, including State 
and local governments, foreign governments, 
colleges and universities, corporations, institu-
tions, partnerships, and sole proprietorships 
that are incorporated or established under the 
laws of any State; and 
‘‘(B) Federal laboratories. 
‘‘(2) COOPERATIVE AGREEMENTS.—In carrying 
out this subsection, the Secretary may enter into co-
operative research and development agreements (as 
defined in section 12 of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3710a)). 
‘‘(3) COST SHARING.—
‘‘(A) 
FEDERAL
SHARE.—The 
Federal 
share of the cost of activities carried out under 
a cooperative research and development agree-
ment entered into under this subsection shall 
not exceed 50 percent; except that, if there is 
substantial public interest or benefit associated 
with any such activity, the Secretary may ap-
prove a greater Federal share. 
‘‘(B) TREATMENT OF DIRECTLY INCURRED 
NON-FEDERAL
COSTS.—All costs directly in-
curred by the non-Federal partners, including 
personnel, travel, and hardware or software de-
366
velopment costs, shall be credited toward the 
non-Federal share of the cost of the activities 
described in subparagraph (A). 
‘‘(4) USE OF TECHNOLOGY.—The research, de-
velopment, or use of a technology under a coopera-
tive research and development agreement entered 
into under this subsection, including the terms 
under which the technology may be licensed and the 
resulting royalties may be distributed, shall be sub-
ject to the Stevenson-Wydler Technology Innovation 
Act of 1980 (15 U.S.C. 3701 et seq.). 
‘‘(c) FUNDING.—From amounts made available 
under section 31104(i), the Secretary shall make available 
$7,000,000 for each of fiscal years 2004 and 2005, 
$8,000,000 for each of fiscal years 2006 and 2007, 
$9,000,000 for fiscal year 2008, and $10,000,000 for fis-
cal year 2009 to carry out this section.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 311 of such title is amended by striking the item 
relating to section 31108 and inserting the following:
‘‘31108. Motor carrier research and technology program.’’.
SEC. 4013. INTERNATIONAL COOPERATION. 
(a) IN GENERAL.—Chapter 311 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing:
367
‘‘SUBCHAPTER IV—MISCELLANEOUS 
‘‘§ 31161. International cooperation 
‘‘The Secretary of Transportation is authorized to 
use funds made available by section 31104(i) to partici-
pate and cooperate in international activities to enhance 
motor carrier, driver, and highway safety by such means 
as exchanging information, conducting research, and ex-
amining needs, best practices, and new technology.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following:
‘‘SUBCHAPTER IV—MISCELLANEOUS 
‘‘31161. International cooperation.’’.
SEC. 4014. PERFORMANCE AND REGISTRATION INFORMA-
TION SYSTEM MANAGEMENT. 
(a) DESIGN AND CONDITIONS FOR PARTICIPATION.—
Section 31106(b) of title 49, United States Code, is 
amended by striking paragraphs (2), (3), and (4) and in-
serting the following: 
‘‘(2) DESIGN.—The program shall link Federal 
motor carrier safety information systems with State 
commercial vehicle registration and licensing systems 
and shall be designed to enable a State to—
‘‘(A) determine the safety fitness of a 
motor carrier or registrant when licensing or 
registering the registrant or motor carrier or 
while the license or registration is in effect; and
368
‘‘(B) deny, suspend, or revoke the commer-
cial motor vehicle registrations of a motor car-
rier or registrant that has been issued an oper-
ations out-of-service order by the Secretary. 
‘‘(3) CONDITIONS
FOR
PARTICIPATION.—The 
Secretary shall require States, as a condition of par-
ticipation in the program, to— 
‘‘(A) comply with the uniform policies, pro-
cedures, and technical and operational stand-
ards prescribed by the Secretary under sub-
section (a)(4); and 
‘‘(B) possess or seek the authority to deny, 
suspend, or revoke commercial motor vehicle 
registrations based on the issuance of an oper-
ations out-of-service order by the Secretary.’’. 
(b) PERFORMANCE
AND REGISTRATION INFORMA-
TION SYSTEM MANAGEMENT GRANTS.—
(1) IN GENERAL.—Subchapter I of chapter 311 
of title 49, United States Code, is further amended 
by adding at the end the following: 
‘‘§ 31109. Performance and registration information 
system management
‘‘(a) IN GENERAL.—The Secretary of Transportation 
may make a grant to a State to implement the perform-
369
ance and registration information system management re-
quirements of section 31106(b). 
‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts made 
available to a State under this section shall remain avail-
able until expended.’’. 
(2) CONFORMING AMENDMENT.—The analysis 
for such subchapter is amended by adding at the 
end the following:
‘‘31109. Performance and registration information system management.’’.
SEC. 4015. DATA QUALITY IMPROVEMENT. 
Section 31106(a)(3) of title 49, United States Code, 
is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D); 
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(F) ensure, to the maximum extent prac-
tically, all the data is complete, timely, and ac-
curate across all information systems and ini-
tiatives.’’. 
SEC. 4016. COMPLETION OF UNIFORM CARRIER REGISTRA-
TION. 
(a) IN GENERAL.—Section 14504 of title 49, United 
States Code, and the item relating to such section in anal-
ysis for chapter 145 of such title, are repealed.
370
(b) CONFORMING AMENDMENTS.—Section 13908 of 
such title is amended—
(1) in subsection (a) by striking ‘‘the single 
State registration system under section 14504,’’; 
(2) in subsection (b)—
(A) by striking paragraphs (2) and (3); 
and 
(B) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (2), (3), and (4), respec-
tively; 
(3) by striking subsection (d); and 
(4) by striking ‘‘(e) DEADLINE FOR CONCLU-
SION; MODIFICATION.—’’ and all that follows 
through ‘‘1996,’’ and inserting the following: 
‘‘(d) DEADLINE FOR COMPLETION.—Not later than 
1 year after the date of enactment of the Transportation 
Equity Act: A Legacy for Users,’’. 
SEC. 4017. REGISTRATION OF MOTOR CARRIERS AND 
FREIGHT FORWARDERS. 
(a) DEFINITIONS RELATING TO MOTOR CARRIERS.—
Paragraphs (6), (7), (12), and (13) of section 13102 of 
title 49, United States Code, are each amended by striking 
‘‘motor vehicle’’ and inserting ‘‘commercial motor vehicle 
(as defined in section 31132)’’.
371
(b) FREIGHT FORWARDERS.—Section 13903(a) of 
title 49, United States Code, is amended—
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) HOUSEHOLD GOODS.—The Secretary’’; 
(2) by inserting ‘‘of household goods’’ after 
‘‘freight forwarder’’; and 
(3) by adding at the end the following: 
‘‘(2) OTHERS.—The Secretary may register a 
person to provide service subject to jurisdiction 
under subchapter III of chapter 135 as a freight for-
warder (other than a freight forwarder of household 
goods) if the Secretary finds that such registration 
is needed for the protection of shippers and that the 
person is fit, willing, and able to provide the service 
and to comply with this part and applicable regula-
tions of the Secretary and Board.’’. 
SEC. 4018. DEPOSIT OF CERTAIN CIVIL PENALTIES INTO 
HIGHWAY TRUST FUND. 
Sections 31138(d)(5) and 31139(f)(5) of title 49, 
United States Code, are each amended by striking ‘‘Treas-
ury as miscellaneous receipts’’ and inserting ‘‘Highway 
Trust Fund (other than the Mass Transit Account)’’.
372
SEC. 4019. OUTREACH AND EDUCATION. 
(a) IN GENERAL.—The Secretary shall conduct, 
through any combination of grants, contracts, or coopera-
tive agreements, an outreach and education program to 
be administered by the Federal Motor Carrier Safety Ad-
ministration and the National Highway Traffic Safety Ad-
ministration. 
(b) PROGRAM ELEMENTS.—The program shall in-
clude, at a minimum, the following: 
(1) A program to promote a more comprehen-
sive and national effort to educate commercial motor 
vehicle drivers and passenger vehicle drivers about 
how commercial motor vehicle drivers and passenger 
vehicle drivers can more safely share the road with 
each other. 
(2) A program to promote enhanced traffic en-
forcement efforts aimed at reducing the incidence of 
the most common unsafe driving behaviors that 
cause or contribute to crashes involving commercial 
motor vehicles and passenger vehicles. 
(3) A program to establish a public-private 
partnership to provide resources and expertise for 
the development and dissemination of information 
relating to sharing the road referred to in para-
graphs (1) and (2) to each partner’s constituents 
and to the general public through the use of bro-
373
chures, videos, paid and public advertisements, the 
Internet, and other media. 
(c) FEDERAL SHARE.—The Federal share of a pro-
gram or activity for which a grant is made under this sec-
tion shall be 100 percent of the cost of such program or 
activity. 
(d) ANNUAL REPORT.—The Secretary shall prepare 
and transmit to Congress an annual report on the pro-
grams and activities carried out under this section. 
(e) FUNDING.—From amounts made available under 
section 31104(i) of title 49, United States Code, the Sec-
retary shall make available $1,250,000 to the Federal 
Motor Carrier Safety Administration, and $3,750,000 to 
the National Highway Traffic Safety Administration, for 
each of fiscal years 2004, 2005, 2006, 2007, 2008, and 
2009 to carry out this section.
SEC. 4020. INSULIN TREATED DIABETES MELLITUS. 
(a) NO PERIOD OF COMMERCIAL DRIVING WHILE 
USING INSULIN REQUIRED FOR QUALIFICATION.—The 
Secretary may not require individuals with insulin-treated 
diabetes mellitus to have experience operating commercial 
motor vehicles while using insulin in order to qualify to 
operate a commercial motor vehicle in interstate com-
merce.
374
(b) MINIMUM PERIOD OF INSULIN USE.—Subject to 
subsection (a), the Secretary shall require individuals with 
insulin-treated diabetes mellitus to have a minimum period 
of insulin use to demonstrate stable control of diabetes 
before operating a commercial motor vehicle in interstate 
commerce. For individuals who have been newly diagnosed 
with type 1 diabetes, the minimum period of insulin use 
may not exceed 2 months, unless directed by the treating 
physician. For individuals who have type 2 diabetes and 
are converting to insulin use, the minimum period of insu-
lin use may not exceed 1 month, unless directed by the 
treating physician. 
(c) LIMITATIONS.—Insulin-treated individuals may 
not be held by the Secretary to a higher standard of phys-
ical qualification in order to operate a commercial motor 
vehicle in interstate commerce than other individuals ap-
plying to operate, or operating, a commercial motor vehicle 
in interstate commerce; except to the extent that limited 
operating, monitoring, and medical requirements are 
deemed medically necessary under regulations issued by 
the Secretary.
SEC. 4021. GRANT PROGRAM FOR COMMERCIAL MOTOR VE-
HICLE OPERATORS. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a grant program for training operators of commercial
375
motor vehicles (as defined in section 31301 of title 49, 
United States Code). The purpose of the program shall 
be to train operators and future operators in the safe use 
of such vehicle. 
(b) FEDERAL SHARE.—The Federal share of the cost 
for which a grant is made under this section shall be 80 
percent. 
(c) FUNDING.—From amounts made available under 
section 31104(i) of title 49, United States Code, the Sec-
retary shall make available $1,000,000 for each of fiscal 
years 2004, 2005, 2006, 2007, 2008, and 2009 to carry 
out this section.
SEC. 4022. COMMERCIAL MOTOR VEHICLE SAFETY ADVI-
SORY COMMITTEE. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a commercial motor vehicle safety advisory committee to 
provide advice and recommendations to the Secretary on 
commercial motor vehicle safety regulations and other 
matters relating to activities and functions of the Federal 
Motor Carrier Safety Administration. 
(b) COMPOSITION.—The members of the advisory 
committee shall be appointed by the Secretary and shall 
include representatives of the motor carrier industry, driv-
ers, safety advocates, manufacturers, safety enforcement 
officials, law enforcement agencies of border States, and
376
other individuals affected by rulemakings under consider-
ation by the Department of Transportation. Representa-
tives of a single interest group may not constitute a major-
ity of the members of the advisory committee. 
(c) TERMINATION DATE.—The advisory committee 
shall remain in effect until September 30, 2009. 
SEC. 4023. SAFETY DATA IMPROVEMENT PROGRAM. 
(a) IN GENERAL.—The Secretary shall make grants 
to States for projects and activities to improve the accu-
racy, timeliness, and completeness of commercial motor 
vehicle safety data reported to the Secretary. 
(b) ELIGIBILITY.—A State shall be eligible for a 
grant under this section in a fiscal year if the Secretary 
determines that the State has—
(1) conducted a comprehensive audit of its com-
mercial motor vehicle safety data system within the 
preceding 2 years; 
(2) developed a plan that identifies and 
prioritizes its commercial motor vehicle safety data 
needs and goals; and 
(3) identified performance-based measures to 
determine progress toward those goals. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out
377
this section $3,000,000 for each of fiscal years 2004 
though 2009. 
(d) 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 cost of a project or activity carried out using such 
funds shall be 80 percent and such funds shall remain 
available until expended. 
(e) BIENNIAL REPORT.—Not later 2 years after the 
date of enactment of this Act, and biennially thereafter, 
the Secretary shall transmit to Congress a report on the 
activities and results of the program carried out under this 
section, together with any recommendations the Secretary 
determines appropriate. 
SEC. 4024. HOUSEHOLD GOODS TRANSPORTATION. 
[Reserved.] 
SEC. 4025. COMMERCIAL DRIVER’S LICENSE INFORMATION 
SYSTEM IMPROVEMENTS. 
[Reserved.] 
SEC. 4026. TECHNICAL CORRECTIONS. 
(a) 
INTERMODAL
TRANSPORTATION
ADVISORY 
BOARD.—Section 5502(b) of title 49, United States Code, 
is amended—
378
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) the Federal Motor Carrier Safety Adminis-
tration.’’. 
(b) REFERENCE TO AGENCY.—Section 31502(e) of 
such title is amended—
(1) in paragraph (2) by striking ‘‘Regional Di-
rector of the Federal Highway Administration’’ and 
inserting ‘‘Field Administrator of the Federal Motor 
Carrier Safety Administration’’; and 
(2) in paragraph (3) by striking ‘‘Regional Di-
rector’’ and inserting ‘‘Field Administrator’’.
TITLE V—TRANSPORTATION 
RESEARCH AND EDUCATION 
Subtitle A—Funding 
SEC. 5101. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated out of the Highway Trust Fund 
(other than the Mass Transit Account): 
(1) SURFACE TRANSPORTATION RESEARCH, DE-
VELOPMENT, 
AND
DEPLOYMENT
PROGRAM.—To 
carry out sections 502, 503, 506, 507, 509, and 510
379
of title 23, United States Code, and sections 5207, 
5210, 5211, and 5402 of this title—
(A) $360,000,000 for fiscal year 2004; 
(B) $352,000,000 for fiscal year 2005; 
(C) $352,000,000 for fiscal year 2006; 
(D) $352,000,000 for fiscal year 2007; 
(E) $354,000,000 for fiscal year 2008; and 
(F) $356,000,000 for fiscal year 2009. 
(2) TRAINING AND EDUCATION.—To carry out 
section 504 of title 23, United States Code, and sec-
tion 5211 of this Act, $40,000,000 for each of fiscal 
years 2004 through 2009. 
(3) BUREAU
OF
TRANSPORTATION
STATIS-
TICS.—For the Bureau of Transportation Statistics 
to carry out section 111 of title 49, United States 
Code, $35,000,000 for each of fiscal years 2004 
through 2009. 
(4) 
UNIVERSITY
TRANSPORTATION
RE-
SEARCH.—To carry out sections 5505 and 5506 of 
title 49, United States Code, $90,000,000 for each 
of fiscal years 2004 through 2009. 
(5) INTELLIGENT
TRANSPORTATION
SYSTEMS 
RESEARCH.—To carry out subtitle F of this title, 
$138,000,000 for each of fiscal years 2004 through 
2009.
380
(b) APPLICABILITY OF TITLE 23, UNITED STATES 
CODE.—Funds authorized to be appropriated by sub-
section (a) 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 a project or activity carried out using 
such funds shall be 50 percent, unless otherwise expressly 
provided by this Act (including the amendments made by 
this Act) or otherwise determined by the Secretary, and 
such funds shall remain available until expended. 
SEC. 5002. OBLIGATION CEILING. 
Notwithstanding any other provision of law, the total 
of all obligations from amounts made available from the 
Highway Trust Fund (other than the Mass Transit Ac-
count) by section 5001(a) of this Act shall not exceed 
$658,000,000 for fiscal year 2004, $660,000,000 for fis-
cal year 2005, $661,000,000 for fiscal year 2006, 
$662,000,000 for fiscal year 2007, $663,000,000 for fis-
cal year 2008, and $664,000,000 for fiscal year 2009. 
Subtitle B—Research, Technology, 
and Education 
SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION. 
(a) RESEARCH, TECHNOLOGY, AND EDUCATION.—
Title 23, United States Code, is amended—
381
(1) in the table of chapters by striking the item 
relating to chapter 5 and inserting the following:
‘‘5. Research, Technology, and Education ................................................
501’’;
and 
(2) by striking the heading for chapter 5 and 
inserting the following: 
‘‘CHAPTER 5—RESEARCH, TECHNOLOGY, AND 
EDUCATION’’. 
(b) STATEMENT
OF PRINCIPLES GOVERNING RE-
SEARCH AND TECHNOLOGY INVESTMENTS.—Section 502 
of such title is amended—
(1) by redesignating subsections (a) through (g) 
as subsections (b) through (h), respectively; and 
(2) by inserting before subsection (b) (as so re-
designated) the following: 
‘‘(a) BASIC PRINCIPLES GOVERNING RESEARCH AND 
TECHNOLOGY INVESTMENTS.—
‘‘(1) COVERAGE.—Surface transportation re-
search and technology development shall include all 
activities leading to technology development and 
transfer, as well as the introduction of new and in-
novative ideas, practices, and approaches, through 
such mechanisms as field applications, education and 
training, and technical support. 
‘‘(2) FEDERAL RESPONSIBILITY.—Funding and 
conducting surface transportation research and tech-
382
nology transfer activities shall be considered a basic 
responsibility of the Federal Government when the 
work—
‘‘(A) is of national significance; 
‘‘(B) supports research in which there is a 
clear public benefit and private sector invest-
ment is less than optimal; 
‘‘(C) supports a Federal stewardship role 
in assuring that State and local governments 
use national resources efficiently; or 
‘‘(D) presents the best means to support 
Federal policy goals compared to other policy 
alternatives. 
‘‘(3) ROLE.—Consistent with these Federal re-
sponsibilities, the Secretary shall—
‘‘(A) conduct research; 
‘‘(B) support and facilitate research and 
technology transfer activities by State highway 
agencies; 
‘‘(C) share results of completed research; 
and 
‘‘(D) support and facilitate technology and 
innovation deployment. 
‘‘(4) PROGRAM CONTENT.—A surface transpor-
tation research program shall include—
383
‘‘(A) fundamental, long-term highway re-
search; 
‘‘(B) research aimed at significant highway 
research gaps and emerging issues with na-
tional implications; and 
‘‘(C) research related to policy and plan-
ning. 
‘‘(5) STAKEHOLDER
INPUT.—Federally spon-
sored surface transportation research and technology 
development activities shall address the needs of 
partners and stakeholders, and provide for stake-
holder input in preparation of a strategic plan for 
surface transportation research and technology de-
velopment. 
‘‘(6) COMPETITION.—To the greatest extent 
possible, investment decisions for surface transpor-
tation research and technology development activities 
shall be based on the well-established principles of 
competition and merit review. 
‘‘(7) PERFORMANCE
REVIEW.—Surface trans-
portation research and technology development ac-
tivities shall include a component of performance 
measurement.’’. 
(c) PROCUREMENT FOR RESEARCH, DEVELOPMENT, 
AND
TECHNOLOGY
TRANSFER
ACTIVITIES.—Section
384
502(b)(3) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘‘(3) 
COOPERATION, 
GRANTS, 
AND
CON-
TRACTS.—The Secretary may carry out research, de-
velopment, and technology transfer activities related 
to transportation—
‘‘(A) independently; 
‘‘(B) in cooperation with other Federal de-
partments, agencies, and instrumentalities and 
Federal laboratories; or 
‘‘(C) by making grants to, or entering into 
contracts, cooperative agreements, and other 
transactions with one or more of the following: 
the National Academy of Sciences, the Amer-
ican Association of State Highway and Trans-
portation Officials, any Federal laboratory, 
Federal agency, State agency, authority, asso-
ciation, institution, for-profit or nonprofit cor-
poration, organization, foreign country, any 
other person.’’. 
(d) TRANSPORTATION POOLED FUND PROGRAM.—
Section 502(b) of such title (as redesignated by subsection 
(b) of this section), is amended by adding at the end the 
following: 
‘‘(6) POOLED FUNDING.—
385
‘‘(A) COOPERATION.—To promote effective 
utilization of available resources, the Secretary 
may cooperate with the States and other appro-
priate agencies in funding research, develop-
ment, and technology transfer activities of mu-
tual interest on a pooled funds basis. 
‘‘(B) SECRETARY
AS
AGENT.—The Sec-
retary may enter into contracts, cooperative 
agreements, grants, and other transactions as 
agent for all participating parties in carrying 
out such research, development, or technology 
transfer.’’. 
(e) OPERATIONS ELEMENTS IN RESEARCH ACTIVI-
TIES.—Section 502 of such title is further amended—
(1) in subsection (b)(1) (as redesignated by 
subsection (b) of this section) by striking subpara-
graphs (B) and (C) and inserting the following: 
‘‘(B) all phases of transportation planning 
and development (including construction, oper-
ation, transportation system management and 
operations, modernization, development, design, 
maintenance, safety, financing, and traffic con-
ditions); and 
‘‘(C) the effect of State laws on the activi-
ties described in subparagraphs (A) and (B).’’;
386
(2) in subsection (d)(5)(C) (as redesignated by 
subsection (b) of this section) by inserting ‘‘system 
management and’’ after ‘‘transportation’’; and 
(3) by inserting at the end of subsection (d) (as 
redesignated by subsection (b) of this section) the 
following: 
‘‘(12) Investigation and development of various 
operational methodologies to reduce the occurrence 
and impact of recurrent congestion and nonrecurrent 
congestion and increase transportation system reli-
ability. 
‘‘(13) Investigation of processes, procedures, 
and technologies to secure container and hazardous 
material transport, including the evaluation of regu-
lations and the impact of good security practices on 
commerce and productivity. 
‘‘(14) Research, development, and technology 
transfer related to asset management.’’. 
(f) FACILITATING TRANSPORTATION RESEARCH AND 
TECHNOLOGY
DEPLOYMENT
PARTNERSHIPS.—Section 
502(c)(2) of such title (as redesignated by subsection (b) 
of this section) is amended to read as follows: 
‘‘(2) COOPERATION, GRANTS, CONTRACTS, AND 
AGREEMENTS.—Notwithstanding any other provision 
of law, the Secretary may directly initiate contracts,
387
cooperative research and development agreements 
(as defined in section 12 of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3710a)), and other transactions to fund, and accept 
funds from, the Transportation Research Board of 
the National Research Council of the National Acad-
emy of Sciences, State departments of transpor-
tation, cities, counties, and their agents to conduct 
joint transportation research and technology ef-
forts.’’. 
(g) EXPLORATORY
ADVANCED
RESEARCH
PRO-
GRAM.—Section 502(e) of such title (as redesignated by 
subsection (b) of this section) is amended to read as fol-
lows: 
‘‘(e) EXPLORATORY ADVANCED RESEARCH.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an exploratory advanced research program, con-
sistent with the surface transportation research and 
technology development strategic plan developed 
under section 508 that involves and draws upon 
basic research results to provide a better under-
standing of problems and develop innovative solu-
tions. In carrying out the program, the Secretary 
shall strive to develop partnerships with public and 
private sector entities.
388
‘‘(2) RESEARCH AREAS.—In carrying out the 
program, the Secretary may make grants and enter 
into cooperative agreements and contracts in such 
areas of surface transportation research and tech-
nology as the Secretary determines appropriate, in-
cluding the following: 
‘‘(A) Characterization of materials used in 
highway infrastructure, including analytical 
techniques, microstructure modeling, and the 
deterioration processes. 
‘‘(B) Assessment of the effects of transpor-
tation decisions on human health. 
‘‘(C) Development of surrogate measures 
of safety. 
‘‘(D) Environmental research. 
‘‘(E) Data acquisition techniques for sys-
tem condition and performance monitoring. 
‘‘(F) System performance data and infor-
mation processing needed to assess the day-to-
day operational performance of the system in 
support of hour-to-hour operational decision-
making.’’. 
(h) LONG-TERM PAVEMENT PERFORMANCE PRO-
GRAM.—
389
(1) IN GENERAL.—Section 502(f) of such title 
(as redesignated by subsection (b) of this section) is 
amended to read as follows: 
‘‘(f) LONG-TERM PAVEMENT PERFORMANCE PRO-
GRAM.—
‘‘(1) AUTHORITY.—The Secretary shall com-
plete the 20-year long-term pavement performance 
program tests initiated under the strategic highway 
research program established under section 307(d) 
(as in effect on June 8, 1998). 
‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND 
CONTRACTS.—Under the program, the Secretary 
shall make grants and enter into cooperative agree-
ments and contracts to—
‘‘(A) monitor, material-test, and evaluate 
highway test sections in existence as of the date 
of the grant, agreement, or contract; 
‘‘(B) analyze the data obtained under sub-
paragraph (A); and 
‘‘(C) prepare products to fulfill program 
objectives and meet future pavement technology 
needs.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(1) of this Act, $30,000,000 for 
each of fiscal years 2004 through 2009 shall be
390
available to carry out section 502(f) of title 23, 
United States Code. 
(i) TURNER-FAIRBANK HIGHWAY RESEARCH CEN-
TER.—Section 502 of title 23, United States Code, is fur-
ther amended by adding at the end the following: 
‘‘(i) TURNER-FAIRBANK HIGHWAY RESEARCH CEN-
TER.—
‘‘(1) IN GENERAL.—The Secretary shall operate 
in the Federal Highway Administration a Turner-
Fairbank Highway Research Center. 
‘‘(2) USES
OF
THE
CENTER.—The Turner-
Fairbank Highway Research Center shall support—
‘‘(A) the conduct of highway research and 
development related to new highway technology; 
‘‘(B) the development of understandings, 
tools, and techniques that provide solutions to 
complex technical problems through the devel-
opment of economical and environmentally sen-
sitive designs, efficient and quality-controlled 
construction practices, and durable materials; 
and 
‘‘(C) the development of innovative high-
way products and practices.’’.
391
SEC. 5202. LONG-TERM BRIDGE PERFORMANCE PROGRAM; 
INNOVATIVE BRIDGE RESEARCH AND DE-
PLOYMENT PROGRAM. 
(a) LONG-TERM
BRIDGE
PERFORMANCE
PRO-
GRAM.—
(1) IN
GENERAL.—Section 502 of title 23, 
United States Code, is further amended by adding 
at the end the following: 
‘‘(j) LONG-TERM
BRIDGE
PERFORMANCE
PRO-
GRAM.—
‘‘(1) AUTHORITY.—The Secretary shall estab-
lish a 20-year long-term bridge performance pro-
gram. 
‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, AND 
CONTRACTS.—Under the program, the Secretary 
shall make grants and enter into cooperative agree-
ments and contracts to—
‘‘(A) monitor, material-test, and evaluate 
test bridges; 
‘‘(B) analyze the data obtained under sub-
paragraph (A); and 
‘‘(C) prepare products to fulfill program 
objectives and meet future bridge technology 
needs.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(1) of this Act, $25,000,000 for
392
each of fiscal years 2004 through 2009 shall be 
available to carry out section 502(j) of title 23, 
United States Code. 
(b) INNOVATIVE BRIDGE RESEARCH AND DEPLOY-
MENT PROGRAM.—
(1) IN GENERAL.—Section 503(b)(1) of such 
title is amended to read as follows: 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish and carry out a program to promote, dem-
onstrate, evaluate, and document the application of 
innovative designs, materials, and construction 
methods in the construction, repair, and rehabilita-
tion of bridges and other highway structures.’’. 
(2) GOALS.—Section 503(b)(2) of such title is 
amended to read as follows: 
‘‘(2) GOALS.—The goals of the program shall 
include—
‘‘(A) the development of new, cost-effec-
tive, innovative highway bridge applications;
‘‘(B) the development of construction tech-
niques to increase safety and reduce construc-
tion time and traffic congestion; 
‘‘(C) the development of engineering design 
criteria for innovative products, materials, and
393
structural systems for use in highway bridges 
and structures; 
‘‘(D) the reduction of maintenance costs 
and life-cycle costs of bridges, including the 
costs of new construction, replacement, or reha-
bilitation of deficient bridges; 
‘‘(E) the development of highway bridges 
and structures that will withstand natural dis-
asters; 
‘‘(F) the documentation and wide dissemi-
nation of objective evaluations of the perform-
ance and benefits of these innovative designs, 
materials, and construction methods; 
‘‘(G) the effective transfer of resulting in-
formation and technology; and 
‘‘(H) the development of improved methods 
to detect bridge scour and economical bridge 
foundation designs that will withstand bridge 
scour.’’. 
(3) FUNDING.—Of the amounts made available 
by section 5101(a)(1) of this Act, $20,000,000 for 
each of fiscal years 2004 through 2009 shall be 
available to carry out section 503(b) of title 23, 
United States Code.
394
SEC. 5203. SURFACE TRANSPORTATION ENVIRONMENT AND 
PLANNING COOPERATIVE RESEARCH PRO-
GRAM. 
(a) IN GENERAL.—Section 507 of title 23, United 
States Code, is amended to read as follows: 
‘‘§ 507. Surface transportation environment and plan-
ning cooperative research program 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a collaborative, public-private surface 
transportation environment and planning cooperative re-
search program. 
‘‘(b) AGREEMENT.—The Secretary shall enter into an 
agreement with the National Academy of Sciences to carry 
out administrative and management activities relating to 
the governance of the surface transportation environment 
and planning cooperative research program. 
‘‘(c) ADVISORY COMMITTEE.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a committee that will be responsible for pro-
gram oversight and project selection. 
‘‘(2) MEMBERSHIP.—The members of the com-
mittee shall be appointed by the Secretary and shall 
be composed of—
‘‘(A) representatives of State, regional, and 
local transportation agencies, including transit 
agencies;
395
‘‘(B) representatives of State environ-
mental agencies and other environmental orga-
nizations; 
‘‘(C) representatives of the transportation 
private sector; 
‘‘(D) transportation and environmental sci-
entists and engineers; and 
‘‘(E) representatives of the Federal High-
way Administration, Federal Transit Adminis-
tration, 
Environmental 
Protection 
Agency, 
United States Fish and Wildlife Service, Corps 
of Engineers, American Association of State 
Highway and Transportation Officials, and 
American Public Transportation Association, 
who shall serve in an ex officio capacity. 
‘‘(3) BALANCE.—The majority of the commit-
tee’s voting members shall be representatives of gov-
ernment transportation agencies. 
‘‘(4) MEETINGS.—The National Academy of 
Sciences shall convene meetings of the committee. 
‘‘(d) GOVERNANCE.—The program established under 
this section shall include the following administrative and 
management elements: 
‘‘(1) NATIONAL RESEARCH AGENDA.—The advi-
sory committee, in consultation with interested par-
396
ties, shall develop, recommend, and periodically up-
date a national research agenda for the program. 
The national research agenda shall include a 
multiyear strategic plan. 
‘‘(2) INVOLVEMENT.—Interested parties may—
‘‘(A) submit research proposals; 
‘‘(B) participate in merit reviews of re-
search proposals and peer reviews of research 
products; and 
‘‘(C) receive research results. 
‘‘(3) OPEN COMPETITION AND PEER REVIEW OF 
RESEARCH PROPOSALS.—The National Academy of 
Sciences may award under the program research 
contracts and grants through open competition and 
merit review conducted on a regular basis. 
‘‘(4) EVALUATION OF RESEARCH.—
‘‘(A) PEER REVIEW.—Research contracts 
and grants may allow peer review of the re-
search results. 
‘‘(B) PROGRAMMATIC EVALUATIONS.—The 
National Academy of Sciences may conduct 
periodic programmatic evaluations on a regular 
basis. 
‘‘(5) DISSEMINATION
OF
RESEARCH
FIND-
INGS.—The National Academy of Sciences shall dis-
397
seminate research findings to researchers, practi-
tioners, and decisionmakers, through conferences 
and seminars, field demonstrations, workshops, 
training programs, presentations, testimony to gov-
ernment officials, World Wide Web, and publications 
for the general public. 
‘‘(e) CONTENTS.—The national research agenda for 
the program required under subsection (d)(1) shall include 
research in the following areas for the purposes described: 
‘‘(1) HUMAN HEALTH.—Human health to es-
tablish the links between transportation activities 
and human health; substantiate the linkages between 
exposure to concentration levels, emissions, and 
health impacts; examine the potential health impacts 
from the implementation and operation of transpor-
tation infrastructure and services; develop strategies 
for avoidance and reduction of these impacts; and 
develop strategies to understand the economic value 
of health improvements and for incorporating health 
considerations into valuation methods. 
‘‘(2) ECOLOGY AND NATURAL SYSTEMS.—Ecol-
ogy and natural systems to measure transportation’s 
short- and long-term impact on natural systems; de-
velop ecologically based performance measures; de-
velop insight into both the spatial and temporal
398
issues associated with transportation and natural 
systems; study the relationship between highway 
density and ecosystem integrity, including the im-
pacts of highway density on habitat integrity and 
overall ecosystem health; develop a rapid assessment 
methodology for use by transportation and regu-
latory agencies in determining the relationship be-
tween highway density and ecosystem integrity; and 
develop ecologically based performance techniques to 
evaluate the success of highway project mitigation 
and enhancement measures. 
‘‘(3) ENVIRONMENTAL
AND
SOCIOECONOMIC 
RELATIONSHIPS.—Environmental and socioeconomic 
relationships to understand differences in mobility, 
access, travel behavior, and travel preferences across 
socioeconomic groups; develop improved planning ap-
proaches that better reflect and respond to commu-
nity needs; improve evaluation methods for exam-
ining the incidence of benefits and costs; examine 
the differential impacts of current methods of fi-
nance and explore alternatives; understand the socio-
economic implications of emerging land development 
patterns and new transportation technologies; de-
velop cost-effective applications of technology that 
improve the equity of the transport system; and de-
399
velop improved methods for community involvement, 
collaborative planning, and conflict resolution. 
‘‘(4) EMERGING
TECHNOLOGIES.—Emerging 
technologies to assist in the transition to environ-
mentally benign fuels and vehicles for passengers 
and freight; develop responses to and demand for 
new technologies that could offer improved environ-
mental performance; identify possible applications of 
intelligent transportation systems technologies for 
environmental benefit; develop policy instruments 
that would encourage the development of beneficial 
new technologies in a cost-effective manner; and re-
spond to the impact of new technologies. 
‘‘(5) LAND USE.—Land use to assess land con-
sumption trends and contributing factors of trans-
portation investment, housing policies, school qual-
ity, and consumer preferences; incorporate impacts 
of transportation investments on location decision 
and land use; identify the costs and benefits of cur-
rent development patterns and their transportation 
implications; determine the effect of the built envi-
ronment on people’s willingness to walk, drive, or 
take public transportation; determine the roles of 
public policy and institutional arrangements in cur-
rent and prospective land use and transportation
400
choices; and develop improved data, methods, and 
processes for considering land use, transportation, 
and the environment in an integrated, systematic 
fashion. 
‘‘(6) PLANNING
AND
PERFORMANCE
MEAS-
URES.—Planning and performance measures to im-
prove understanding of travel needs and preferences; 
improve planning methods for system analysis, fore-
casting, and decisionmaking; expand information on 
consumer choice processes and travel and activity 
patterns for both local and long-distance trips and 
both passenger and freight transportation analysis 
of social, environmental, and economic benefits and 
cost of various transport options; develop tools for 
measuring and forecasting complex transportation 
decisions for all modes and users; and develop per-
formance measures and policy analysis approaches 
that can be used to determine effectiveness. 
‘‘(7) OTHER
RESEARCH
AREAS.—Other re-
search areas to identify and address the emerging 
and future surface transportation research needs re-
lated to planning and environment. 
‘‘(f) FUNDING.—
‘‘(1) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out under this section
401
shall be up to 100 percent, and such funds shall re-
main available until expended. 
‘‘(2) USE OF NON-FEDERAL FUNDS.—In addi-
tion to using funds authorized to be appropriated to 
carry out this section, the National Academy of 
Sciences may seek and accept additional funding 
sources to carry out this section from public and pri-
vate entities capable of attracting and accepting 
funding from the Department of Transportation, 
Environmental Protection Agency, Department of 
Energy, United States Fish and Wildlife Service, 
and other Federal environmental agencies, States, 
local governments, nonprofit foundations, and the 
private sector.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of such title is amended by striking the item 
relating to section 507 and inserting the following:
‘‘507. Surface transportation environment and planning cooperative research 
program.’’.
(c) FUNDING.—Of the amounts made available by 
section 5101(a)(1) of this Act, $20,000,000 for each of 
fiscal years 2004 through 2009 shall be available to carry 
out section 507 of title 23, United States Code. 
SEC. 5204. TECHNOLOGY DEPLOYMENT. 
(a) TECHNOLOGY DEPLOYMENT PROGRAM.—Section 
503(a) of title 23, United States Code, is amended—
402
(1) in the subsection heading by striking ‘‘INI-
TIATIVES AND PARTNERSHIPS’’; 
(2) by striking paragraph (1) and inserting the 
following: 
‘‘(1) ESTABLISHMENT.—The Secretary shall 
develop and administer a national technology deploy-
ment program.’’; 
(3) by striking paragraph (7) and inserting the 
following: 
‘‘(7) GRANTS, COOPERATIVE AGREEMENTS, AND 
CONTRACTS.—
‘‘(A) IN GENERAL.—Under the program, 
the Secretary shall make grants to, and enter 
into cooperative agreements and contracts with, 
States, other Federal agencies, universities and 
colleges, private sector entities, and nonprofit 
organizations to pay the Federal share of the 
cost of research, development, and technology 
transfer activities concerning innovative mate-
rials. 
‘‘(B) APPLICATIONS.—To receive a grant 
under this subsection, an entity described in 
subparagraph (A) shall submit an application to 
the Secretary. The application shall be in such 
form and contain such information as the Sec-
403
retary may require. The Secretary shall select 
and approve an application based on whether 
the project that is the subject of the grant 
meets the purpose of the program described in 
paragraph (2).’’; and 
(4) by striking paragraph (8) and inserting the 
following: 
‘‘(8) TECHNOLOGY AND INFORMATION TRANS-
FER.—The Secretary shall ensure that the informa-
tion and technology resulting from research con-
ducted under paragraph (3) is made available to 
State and local transportation departments and 
other interested parties as specified by the Sec-
retary.’’. 
(b) INNOVATIVE PAVEMENT RESEARCH
AND DE-
PLOYMENT PROGRAM.—
(1) IN GENERAL.—Section 503 of such title is 
further amended by adding at the end the following: 
‘‘(c) INNOVATIVE PAVEMENT RESEARCH AND DE-
PLOYMENT PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish and implement a program to promote, dem-
onstrate, support, and document the application of 
innovative pavement technologies, practices, per-
formance, and benefits.
404
‘‘(2) GOALS.—The goals of the innovative pave-
ment research and deployment program shall in-
clude—
‘‘(A) the deployment of new, cost-effective, 
innovative designs, materials, and practices to 
extend pavement life and performance and to 
improve customer satisfaction; 
‘‘(B) the reduction of initial costs and life-
cycle costs of pavements, including the costs of 
new construction, replacement, maintenance, 
and rehabilitation; 
‘‘(C) the deployment of accelerated con-
struction techniques to increase safety and re-
duce construction time and traffic disruption 
and congestion; 
‘‘(D) the deployment of engineering design 
criteria and specifications for innovative prac-
tices, products, and materials for use in high-
way pavements; 
‘‘(E) the deployment of new nondestructive 
and real-time pavement evaluation technologies 
and techniques; 
‘‘(F) the evaluation, refinement, and docu-
mentation of the performance and benefits of 
innovative technologies deployed to improve life,
405
performance, cost effectiveness, safety, and cus-
tomer satisfaction; 
‘‘(G) effective technology transfer and in-
formation dissemination to accelerate imple-
mentation of innovative technologies and to im-
prove life, performance, cost effectiveness, safe-
ty, and customer satisfaction; and 
‘‘(H) the development of designs and mate-
rials to reduce storm water runoff. 
‘‘(3) RESEARCH
TO
IMPROVE
NHS
PAVE-
MENT.—The Secretary shall obligate not less than 
$10,000,000 per fiscal year from funds made avail-
able to carry out this subsection to conduct research 
to improve asphalt pavement, concrete pavement, 
and aggregates used in highways on the National 
Highway System.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(1) of this Act, $25,000,000 for 
each of fiscal years 2004 through 2009 shall be 
available to carry out section 503(c) of title 23, 
United States Code. 
(c) SAFETY INNOVATION DEPLOYMENT PROGRAM.—
(1) IN GENERAL.—Section 503 of such title is 
further amended by adding the following:
406
‘‘(d) SAFETY
INNOVATION
DEPLOYMENT
PRO-
GRAM.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish and implement a program to demonstrate the 
application of innovative technologies in highway 
safety. 
‘‘(2) GOALS.—The goals of the program shall 
include—
‘‘(A) the deployment and evaluation of 
safety technologies and innovations at State 
and local levels; and 
‘‘(B) the deployment of best practices in 
training, management, design, and planning. 
‘‘(3) GRANTS, COOPERATIVE AGREEMENTS, AND 
CONTRACTS.—
‘‘(A) IN GENERAL.—Under the program, 
the Secretary shall make grants to, and enter 
into cooperative agreements and contracts with, 
States, other Federal agencies, universities and 
colleges, private sector entities, and nonprofit 
organizations for research, development, and 
technology transfer for innovative safety tech-
nologies. 
‘‘(B) APPLICATIONS.—To receive a grant 
under this subsection, an entity described in
407
subparagraph (A) shall submit an application to 
the Secretary. The application shall be in such 
form and contain such information as the Sec-
retary may require. The Secretary shall select 
and approve the applications based on whether 
the project that is the subject of the application 
meets the goals of the program described in 
paragraph (2). 
‘‘(4) TECHNOLOGY AND INFORMATION TRANS-
FER.—The Secretary shall take such action as is 
necessary to ensure that the information and tech-
nology resulting from research conducted under 
paragraph (3) is made available to State and local 
transportation departments and other interested 
parties as specified by the Secretary.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(1) of this Act, $20,000,000 for 
each of fiscal years 2004 through 2009 shall be 
available to carry out section 503(d) of title 23, 
United States Code. 
(d) AUTHORITY
TO
PURCHASE
PROMOTIONAL 
ITEMS.—Section 503 of such title is further amended by 
adding at the end the following: 
‘‘(e) PROMOTIONAL AUTHORITY.—Funds authorized 
to be appropriated for necessary expenses for administra-
408
tion and operation of the Federal Highway Administration 
shall be available to purchase promotional items of nomi-
nal value for use in the recruitment of individuals and to 
promote the programs of the Federal Highway Adminis-
tration.’’. 
SEC. 5205. TRAINING AND EDUCATION. 
(a) NATIONAL HIGHWAY INSTITUTE.—
(1) IN
GENERAL.—Section 504(a)(3) of title 
23, United States Code, is amended to read as fol-
lows: 
‘‘(3) COURSES.—The Institute may develop and 
administer courses in modern developments, tech-
niques, methods, regulations, management, and pro-
cedures in areas, including surface transportation, 
environmental mitigation, compliance, stewardship, 
and streamlining, acquisition of rights-of-way, relo-
cation assistance, engineering, safety, transportation 
system management and operations, construction, 
maintenance, contract administration, inspection, 
and highway finance.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(2) of this Act, $8,000,000 for 
each of fiscal years 2004 through 2009 shall be 
available to carry out section 504(a) of title 23, 
United States Code.
409
(b) LOCAL TECHNICAL ASSISTANCE PROGRAM.—
(1) IN GENERAL.—Section 504(b) of such title 
is amended by adding at the end the following: 
‘‘(3) FEDERAL SHARE.—
‘‘(A) GRANTS.—A grant under this sub-
section may be used to pay up to 50 percent of 
local technical assistance program costs. Funds 
available for technology transfer and training 
purposes under this title and title 49 may be 
used to cover the remaining 50 percent of the 
program costs. 
‘‘(B) 
TRIBAL
TECHNICAL
ASSISTANCE 
CENTERS.—The Federal share of the cost of ac-
tivities carried out by the tribal technical assist-
ance centers under paragraph (2)(D)(ii) shall 
be 100 percent.’’. 
(2) FUNDING.—Of the amounts made available 
by section 5101(a)(2) of this Act, $15,000,000 for 
each of fiscal years 2004 through 2009 shall be 
available to carry out section 504(b) of title 23, 
United States Code. 
(c) EISENHOWER TRANSPORTATION FELLOWSHIP 
PROGRAM.—Of the amounts made available by section 
5101(a)(2) of this Act, $3,000,000 for each of fiscal years
410
2004 through 2009 shall be available to carry out section 
504(c)(2) of title 23, United States Code. 
(d) GARRETT MORGAN PROGRAM.—[Reserved.] 
(e) SURFACE TRANSPORTATION WORKFORCE DE-
VELOPMENT, TRAINING, AND EDUCATION.—Section 504 
of such title is amended by adding at the end the fol-
lowing: 
‘‘(d) SURFACE TRANSPORTATION WORKFORCE DE-
VELOPMENT, TRAINING, AND EDUCATION.—
‘‘(1) FUNDING.—Subject to project approval by 
the Secretary, a State may obligate funds appor-
tioned to the State under sections 104(b)(1), 
104(b)(2), 104(b)(3), 104(b)(4), and 144(e) for sur-
face transportation workforce development, training 
and education, including—
‘‘(A) tuition and direct educational ex-
penses, excluding salaries, in connection with 
the education and training of employees of 
State and local transportation agencies; 
‘‘(B) employee professional development; 
‘‘(C) student internships; 
‘‘(D) university or community college sup-
port; and
411
‘‘(E) education activities, including out-
reach, to develop interest and promote partici-
pation in surface transportation careers. 
‘‘(2) FEDERAL SHARE.—The Federal share of 
the cost of activities carried out in accordance with 
this subsection shall be 100 percent. 
‘‘(3) SURFACE
TRANSPORTATION
WORKFORCE 
DEVELOPMENT, TRAINING, AND
EDUCATION
DE-
FINED.—In this subsection, the term ‘surface trans-
portation workforce development, training, and edu-
cation’ means activities associated with surface 
transportation career awareness, student transpor-
tation career preparation, and training and profes-
sional development for surface transportation work-
ers, including activities for women and minorities.’’. 
(f) DEFINITIONS AND DECLARATION OF POLICY.—
Section 101(a)(3) of such title is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (G); 
(2) by striking the period at the end of sub-
paragraph (H) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(I) surface transportation workforce de-
velopment, training, and education.’’.
412
SEC. 5206. FREIGHT PLANNING CAPACITY BUILDING. 
(a) IN GENERAL.—Section 504 of title 23, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(e) FREIGHT CAPACITY BUILDING PROGRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a freight planning capacity building initiative 
to support enhancements in freight transportation 
planning in order to—
‘‘(A) better target investments in freight 
transportation systems to maintain efficiency 
and productivity; and 
‘‘(B) strengthen the decisionmaking capac-
ity of State transportation departments and 
local transportation agencies with respect to 
freight transportation planning and systems. 
‘‘(2) AGREEMENTS.—The Secretary shall enter 
into agreements to support and carry out adminis-
trative and management activities relating to the 
governance of the freight planning capacity initia-
tive. 
‘‘(3) STAKEHOLDER
INVOLVEMENT.—In car-
rying out this section, the Secretary shall consult 
with the Association of Metropolitan Planning Orga-
nizations, the American Association of State High-
way and Transportation Officials, and other freight
413
planning stakeholders, including the other Federal 
agencies, State transportation departments, local 
governments, nonprofit entities, academia, and the 
private sector. 
‘‘(4) ELIGIBLE ACTIVITIES.—The freight plan-
ning capacity building initiative shall include re-
search, training, and education in the following 
areas: 
‘‘(A) The identification and dissemination 
of best practices in freight transportation. 
‘‘(B) Providing opportunities for freight 
transportation staff to engage in peer exchange. 
‘‘(C) Refinement of data and analysis tools 
used in conjunction with assessing freight 
transportation needs. 
‘‘(D) Technical assistance to State trans-
portation departments and local transportation 
agencies reorganizing to address freight trans-
portation issues. 
‘‘(E) Facilitating relationship building be-
tween governmental and private entities in-
volved in freight transportation. 
‘‘(F) Identifying ways to target the capac-
ity of State transportation departments and 
local transportation agencies to address freight
414
considerations in operations, security, asset 
management, and environmental excellence in 
connection with long-range multimodal trans-
portation planning and project implementation. 
‘‘(5) FUNDING.—
‘‘(A) 
FEDERAL
SHARE.—The 
Federal 
share of the cost of an activity carried out 
under this section shall be up to 100 percent, 
and such funds shall remain available until ex-
pended. 
‘‘(B) USE
OF
NON-FEDERAL
FUNDS.—
Funds made available for the program estab-
lished under this subsection may be used for re-
search, program development, information col-
lection and dissemination, and technical assist-
ance. The Secretary may use such funds inde-
pendently or make grants to, or enter into con-
tracts, cooperative agreements, and other trans-
actions with, a Federal agency, State agency, 
local agency, Federally recognized Indian tribal 
government or tribal consortium, authority, as-
sociation, nonprofit or for-profit corporation, or 
institution of higher education, to carry out the 
purposes of this subsection.’’.
415
(b) FUNDING.—Of the amounts made available by 
section 5101(a)(2) of this Act, $10,000,000 for each of 
fiscal years 2004 through 2009 shall be available to carry 
out section 504(e) of title 23, United States Code. 
(c) TECHNICAL AMENDMENT.—Section 508(e)(3)(C) 
of such title is amended by inserting ‘‘of title 31’’ after 
‘‘1116’’. 
SEC. 5207. ADVANCED TRAVEL FORECASTING PROCEDURES 
PROGRAM. 
(a) 
CONTINUATION
AND
ACCELERATION
OF 
TRANSIMS DEPLOYMENT.—The Secretary shall accel-
erate the deployment of the advanced transportation 
model known as the ‘‘Transportation Analysis Simulation 
System’’ (in this section referred to as ‘‘TRANSIMS’’), 
developed by the Los Alamos National Laboratory. The 
program shall assist State departments of transportation 
and metropolitan planning organizations in the implemen-
tation of TRANSIMS, develop methods for TRANSIMS 
applications to transportation planning and air quality 
analysis, and provide training and technical assistance for 
the implementation of TRANSIMS. The program may 
support the development of methods to plan for the trans-
portation response to chemical and biological terrorism 
and other security concerns.
416
(b) ELIGIBLE ACTIVITIES.—The Secretary shall use 
funds made available by section 5101(a)(1) to—
(1) provide funding to State departments of 
transportation and metropolitan planning organiza-
tions serving transportation management areas des-
ignated under chapter 52 of title 49, United States 
Code, representing a diversity of populations, geo-
graphic regions, and analytic needs to implement 
TRANSIMS; 
(2) develop methods to demonstrate a wide 
spectrum of TRANSIMS applications to support 
metropolitan and statewide transportation planning, 
including integrating highway and transit oper-
ational considerations into the transportation plan-
ning process; and 
(3) provide training and technical assistance with 
respect to the implementation and application of 
TRANSIMS to States, local governments, and met-
ropolitan planning organizations with responsibility 
for travel modeling. 
(c) ALLOCATION OF FUNDS.—Not more than 75 per-
cent of the funds made available to carry out this section 
may be allocated to activities described in subsection 
(b)(1).
417
(d) FUNDING.—Of the amounts made available by 
section 5101(a)(1) of this Act, $5,000,000 for each of fis-
cal years 2004 through 2009 shall be available to carry 
out this section.
SEC. 5208. NATIONAL COOPERATIVE FREIGHT TRANSPOR-
TATION RESEARCH PROGRAM. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is further amended by adding at the end the 
following: 
‘‘§ 509. National cooperative freight transportation 
research program 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and support a national cooperative freight transpor-
tation research program. 
‘‘(b) AGREEMENT.—The Secretary shall enter into an 
agreement with the National Academy of Sciences to sup-
port and carry out administrative and management activi-
ties relating to the governance of the national cooperative 
freight transportation research program. 
‘‘(c) ADVISORY COMMITTEE.—The National Acad-
emy of Sciences shall select an advisory committee con-
sisting of a representative cross-section of freight stake-
holders, including the Department of Transportation, 
other Federal agencies, State transportation departments,
418
local governments, nonprofit entities, academia, and the 
private sector. 
‘‘(d) 
GOVERNANCE.—The 
national 
cooperative 
freight transportation research program established under 
this section shall include the following administrative and 
management elements: 
‘‘(1) NATIONAL RESEARCH AGENDA.—The advi-
sory committee, in consultation with interested par-
ties, shall recommend a national research agenda for 
the program. The agenda shall include a multiyear 
strategic plan. 
‘‘(2) INVOLVEMENT.—Interested parties may—
‘‘(A) submit research proposals to the advi-
sory committee; 
‘‘(B) participate in merit reviews of re-
search proposals and peer reviews of research 
products; and 
‘‘(C) receive research results. 
‘‘(3) OPEN COMPETITION AND PEER REVIEW OF 
RESEARCH PROPOSALS.—The National Academy of 
Sciences may award research contracts and grants 
under the program through open competition and 
merit review conducted on a regular basis. 
‘‘(4) EVALUATION OF RESEARCH.—
419
‘‘(A) PEER REVIEW.—Research contracts 
and grants under the program may allow peer 
review of the research results. 
‘‘(B) PROGRAMMATIC EVALUATIONS.—The 
National Academy of Sciences may conduct 
periodic programmatic evaluations on a regular 
basis of research contracts and grants. 
‘‘(5) DISSEMINATION
OF
RESEARCH
FIND-
INGS.—The National Academy of Sciences shall dis-
seminate research findings to researchers, practi-
tioners, and decisionmakers, through conferences 
and seminars, field demonstrations, workshops, 
training programs, presentations, testimony to gov-
ernment officials, World Wide Web, publications for 
the general public, and other appropriate means. 
‘‘(e) CONTENTS.—The national research agenda re-
quired under subsection (d)(1) shall include research in 
the following areas: 
‘‘(1) Techniques for estimating and quantifying 
public benefits derived from freight transportation 
projects. 
‘‘(2) Alternative approaches to calculating the 
contribution of truck and rail traffic to congestion 
on specific highway segments.
420
‘‘(3) The feasibility of consolidating origins and 
destinations for freight movement. 
‘‘(4) Methods for incorporating estimates of 
international trade into landside transportation plan-
ning. 
‘‘(5) The use of technology applications to in-
crease capacity of highway lanes dedicated to truck-
only traffic. 
‘‘(6) Development of physical and policy alter-
natives for separating car and truck traffic. 
‘‘(7) Ways to synchronize infrastructure im-
provements with freight transportation demand. 
‘‘(8) The effect of changing patterns of freight 
movement on transportation planning decisions re-
lating to rest areas. 
‘‘(9) Other research areas to identify and ad-
dress the emerging and future research needs re-
lated to freight transportation by all modes. 
‘‘(f) FUNDING.—
‘‘(1) FEDERAL SHARE.—The Federal share of 
the cost of an activity carried out under this section 
shall be up to 100 percent, and such funds shall re-
main available until expended. 
‘‘(2) USE OF NON-FEDERAL FUNDS.—In addi-
tion to using funds authorized for this section, the
421
National Academy of Sciences may seek and accept 
additional funding sources from public and private 
entities capable of accepting funding from the De-
partment of Transportation, States, local govern-
ments, nonprofit foundations, and the private sec-
tor.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is further amended by adding at the end the 
following:
‘‘509. National cooperative freight transportation research program.’’.
(c) FUNDING.—Of the amounts made available by 
section 5101(a)(1) of this Act, $10,000,000 for each of 
fiscal years 2004 through 2009 shall be available to carry 
out section 509 of title 23, United States Code. 
SEC. 5209. FUTURE STRATEGIC HIGHWAY RESEARCH PRO-
GRAM. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is further amended by adding at the end the 
following: 
‘‘§ 510. Future strategic highway research program 
‘‘(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the American Association of State Highway and 
Transportation Officials, shall establish and carry out, 
acting through the National Research Council of the Na-
tional Academy of Sciences, the future strategic highway 
research program.